May 2014

Average U.S. Mortgage Rate Drops This Week

The average rate for a fixed mortgage in the U.S. fell, yet again, this week making it the fifth week in a row for the drop. Although the home-buying season for spring has gotten off to a slow start, the low rates might just help. On Thursday this week, Freddie Mac said that the “average rate for a 30 year loan came down to 4.12 percent from 4.14 percent last week. On a 15-year mortgage, the average rate dropped to 3.21 percent from 3.25. With Spring in full swing, the warmer weather actually has yet to increase home sales as it usually does. The higher interest rates and rising prices that began mid-2012 made home sales an unattractive market for potential home buyers. However, we find that there are actually less homes with available to purchase with new construction redirecting their focus from single-family homes to rentals. The price of…

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New Welcome Home Illinois Program for First Time Chicago Area Homebuyers

Govenor Quinn came to Aurora Friday May 16th, 2014 to the recently purchased home of Ryan and Jessica Chrisman-Denegri to announce his newly launched “Welcome Home Illinois” mortgage loan program for first time homebuyers and to congratulate the new homeowners. Ryan and Jessica were among the first buyers to close under the new program. This new program from the Illinois Housing Development Authority is being rolled out just in time for the spring market. The Welcome Home Illinois program provides homebuyers with a $7,500 grant to use toward their down payment, and a below market rate on a 30 year fixed loan. The program assists buyers with the cash needed to become homeowners. You must be a first-time homebuyer to qualify. The home must be purchased in the state of Illinois, must be a primary residence purchase only(no refinances), must contribute 1% or $1,000 of the purchase price(whichever is greater),…

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Do the Benefits of Buying Outweigh Renting?

According to the first quarter Zillow breakeven horizon analysis, in over half of the metros areas in the U.S., purchasing a home is a better decision financially than renting for those homebuyers who plan on residing in their home at least two years. During this first quarter 35 of the largest metro areas where analyzed.  The following cities had the shortest breakeven horizon: Miami –Fort Lauderdale (1.2 years), Tampa (1.1 years), Orlando (one year), and Riverside (less than one year). The cities with the longest breakeven horizon included: Minneapolis and Baltimore (both 3.1 years), San Diego (3.2 years) Phoenix (3.3 years), Boston (four years), and Washington D.C. (4.2 years). Since there are many varying factors for buyers within the same city, Zillow makes breakeven horizons down to the neighborhood in order to give potential homebuyers as well as renters the most accurate information in regards to the specific area in…

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