Hello! I have teamed up with Allyson to provide you with a resource for all your mortgage and financing needs. To this end, I will update current rates and market information weekly in the space below. In addition, I will be available to answer any financing questions you have in a timely manner. If you have a question you would like feedback on, please email me and I will respond promptly.Sincerely, , Christine Grenier, Senior Loan Officer PH: 408-223-0937 FIRSTNET MORTGAGE, INC. The following is your most current rate announcement: The following is the current rate outlook: For Purchases - for 30 day lock and ZERO points: Conforming 30 yr fixed: 5.75% 20 yr fixed: 5.75% 15 yr fixed: 5.375% 10 yr fixed: 5.5% 7 yr fixed: 5.375% 5 yr fixed: 5.125% 3 yr fixed: 5.125% Non-Conforming (>/= $359,651)* 30 yr fixed: 5.875% 20 yr fixed: 5.875% 15 yr fixed: 5.25% 10 yr fixed: 5.5% 7 yr fixed: 5.375% 5 yr fixed: 5.125% 3 yr fixed: 4.875% The dollar and bond prices fell early Wednesday after a report showed the U.S. trade deficit widened way beyond expectations to a new record in November. Keep in mind that when bond prices fall, bond yields rise and that leads to higher rates. Other economic news: Applications for U.S. home mortgages dropped last week as a decrease in purchasing activity offset an increase in refinancing activity, an industry group said Wednesday. Reference: http://money.cnn.com/2005/01/12/news/economy/mortgage_aps.reut/index.htm Excerpt from this website: The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity declined 3 percent to 587.8 in the week ended Jan. 7, after falling 10.6 percent in the MBA's prior week survey. The MBA's purchase index, a gauge of loan requests for home purchases, decreased 5.8 percent last week to 393.1, adding to the 13.7 percent loss the previous week. Some of you have asked me about the Fed Meetings. Here is a short explanation and a list of their scheduled meetings for 2005. • The Federal Reserve ('The Fed') influences the demand for, and amount of, balances that depository institutions (banks and other lending institutions) must keep at the Federal Reserve Banks. • The federal funds rate is the interest rate (otherwise known as the 'overnight borrowing rate') at which these depository institutions lend each other to keep their required balances in the Fed Reserve Bank. • The Fed controls the required balances and the Fed Funds rate. • Changes in the federal funds rate trigger a chain of events that affect other short-term interest rates, foreign exchange rates, long-term interest rates, the amount of money available in the economy, and ultimately, a range of economic variables, including employment, output, and prices of goods and services. I've listed the Fed's meeting schedule for 2005 below. This is when they will decide when/if/how much to raise the federal funds interest rate. • February 1-2 (Tuesday-Wednesday) • March 22 • May 3 • June 29-30 (Wednesday-Thursday) • August 9 • September 20 • November 1 • December 13 • January 31-February 1, 2006 (Tuesday-Wednesday) |
- Anna from El Segundo asks:Q. Years ago I incurred Private Mortgage Insurance (PMI) in order to obtain my loan. Is it tax deductible and how, if ever, can I rid myself of it?
A. Hi Anna. In order to remove PMI from your monthly payment you must first arrange for an appraisal by a licensed Residential Appraiser. You can get a name a phone number from the yellow pages or the web. Provided that your home has gained equity and appraises to 80% loan to value (divide your present loan amount by the appraised value), simply forward your lender the appraisal for their review. At 80% or less Loan to Value, they must remove PMI.
Also, PMI is not tax deductible.
- Christine, FirstNet Mortgage, Inc.; PH: 408-223-0937
