Chicago FHA mortgage rates

What Questions Should You Ask Your Lender When Applying for a Loan?

                  When shopping for renovation loans and FHA 203k renovation loans, what questions should you ask your lender to be sure they are qualified and ensure a smooth process? Renovation loans are popular because they are flexible: you can take a property in need of a lot of work, and turn it into a good-as-new home, or find a home needing minor updates and make it the way you want. Checking Lender Experience While many lenders say they do renovation loans, it is important to find out how many they’ve actually done. One of the most important things to determine is the amount of experience your lender has with renovation loans. Renovation loans are different than traditional mortgages. Not only does the borrower need to be approved, but contractors doing the renovations need to be involved as well. Everything that needs to…

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What Can You Do with a Renovation Loan?

What specifically are you allowed to do with a renovation loan? The real question is, “What can’t you do?” because there is a lot of flexibility with this type of loan. There are many different ways to use this program. There are three basic types to look at: FHA 203k renovation loan: a great way to get a government-insured property with as little as 3.5% down, including costs of repairs Homestyle renovation loan: better if you have a bit more of a down payment VA renovation loan: includes special benefits for veterans and disabled veterans The good thing about renovation loans is their flexibility: you can use it for something that just needs a little bit of work or a home that needs a tremendous amount of work. It doesn’t matter what the condition of the property is currently in, but what the condition will be once you finish making…

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How to Find the Right Lender for a FHA 203k Renovation Loan

                  A renovation loan, or FHA 203k renovation loan, is a great tool for buying a home that needs some repairs or improvements to raise the value of the home. Renovation loans allow buyers to incorporate renovation costs into the mortgage in order to improve the home and raise its value immediately, rather than waiting to renovate years down the road. In addition, this can save money in comparison to a second mortgage or use credit cards to make improvements. When shopping for a lender, what questions do you need to ask when considering a renovation loan, or FHA 203k renovation loan? How Experienced Is the Lender? How many renovation loans has the lender done in the past? There are many moving parts to a renovation loan: you have to approve the situation, know the timing of everything, and know what is…

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Chicago Illinois Mortgage Rates Week in Review for the Week Ending 06/08/2012

This promises to be a hot summer. Weather here in Chicago is always hot in the summer time, but with all the turmoil in Europe, the financial markets are feeling the heat, too. Last week the focus was mostly on the situation in Spain. With Spain’s major banks on the brink of failure and bond rates soaring, they became the fourth European Union member to ask for a bailout (Greece, Portugal and Ireland are the others). The general guidelines of the bailout have been worked out, which takes the pressure off for now, but nothing will be official until later this month. And Spain is still a side show, as the real risk is what happens to Greece after their next round of elections on June 17th – next Sunday. They weren’t able to form a government the last time they tried, and this time the favored party is running…

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Chicago Illinois Mortgage Rates Week in Review for the Week Ending 02/03/2012

Over the past months there have been steady signs that the economy was starting to build steam and improve. The employment report released on Friday is the best evidence of this view yet. The latest report showed an increase of 243,000 new jobs, and a drop in the unemployment rate to 8.3% from 8.5%. This was a solid showing, and more so because it handily beat expectations. Revisions to previous months also came in higher, so this was the most positive report we have seen in a long, long time. This is still just one report and there are still way too many people who are long time unemployed, there are still over 12 million Americans looking for jobs we have and a long way to go to make up for all the contraction in the economy over the last several years. But this is an optimistic sign. Another good…

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Chicago Illinois Mortgage Rates Week in Review for the Week Ending 08/05/2011

This last week was a crazy week. It started out with an agreement to patch up on the debt ceiling (one which no one liked or wanted to take credit for), continued with more signs that the European Union was on the brink, the stock market plunging , a ray of hope for the weakening economy with the monthly jobs report, and ended with a bang, after the markets closed, with Standard and Poors (one of 3 private rating agencies) downgrading the credit rating of the United States. This all has the feeling of August 2008. Strap on your belts, this roller coaster is going to be a crazy ride. Sub-Prime Nation?  Let’s get to the big enchilada, first. Is the United States now a sub-prime nation? Despite all the rhetoric, no one believes that we are unable to pay our bills. The real question here is if we have…

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Chicago Illinois Mortgage Rates Week in Review for the Week Ending 07/21/2011

It is now down to crunch time. The government will officially run out of money on August 2nd if a deal isn’t reached to raise the debt ceiling, and congress is still locked in with no agreement in sight. At the end of last week it looked like a big agreement was coming together. President Obama and House Speaker Boener, the leading Republican in the House, were on the verge of a plan that would put in place big budget cuts with modest revenue increases, but no new taxes. This deal fell apart Friday night, right after the financial markets had closed, when it became clear that Boener didn’t have the support from his rank and file. So now all parties are scrambling to come up with something, but there is no common language to what an agreement could look like, so it comes down to a high stakes game…

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Chicago Illinois Mortgage Rates Week in Review for the Week Ending 07/01/2011

This was a bad week for mortgage rates as treasury bonds and mortgage bonds lost over 100 basis points, sending fixed rates up about a quarter point higher. Part of this was due to the situation in Greece. The Greek parliament approved the austerity program, a prerequisite for any bailout, and the European Union moved forward with the first step of support. But this is still just a temporary solution. In order for this package to work, private investors in Greek debt have to be on board, and the new deadline for an agreement on how this will work has been moved to mid September. As we get closer to this date, the markets will refocus on this and the dance will continue. The Greek debt is still a major problem, but it has been kicked down the road a little farther. But Greece was only part of the reason…

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Chicago Illinois Mortgage Rates Week in Review for the Week Ending 06/24/2011

For this week, the direction trend in mortgage rates is all about Greece. The Greek parliament is scheduled to vote on new austerity measures Wednesday, a precondition of any European Union bailout. It is almost guaranteed that this measure will pass, as Greece has no other real options, and Germany and France have made it clear that they will not sign on for any more debt relief if the measure doesn’t pass. The mobs in the street are not likely to appreciate this, and the investors in Greek debt aren’t happy either. Creditors, including all the big European and US banks, will lose about 70% of their initial investments. The Greek default has been like a slow motion train wreck, but as it unwinds, the focus will shift to other European economies, with the question being – Who is next? Greece is the focus now, but there is another crisis…

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Chicago Illinois Mortgage Rates Week in Review for the Week Ending 06/17/2011

Mortgage rates are still very low and holding as the markets wait for a clear direction. Mortgage rates rose in the middle of the week but settled back to flat by the end of the week. Greece, and the state of the European Union is still the biggest worry. Last week there was rioting in the streets in protest to the the austerity forced upon them. There is no easy answer as to what to do with the situation there, and the union is being tested as the needs of the stronger countries don’t align with those of the weak. Germany and France delayed the crisis with news that they will offer additional support, but this is mostly a band aid, not a real solution. At some point this will come to a head, but for now the decision on what to do has been pushed back to July. There…

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