My New Blog

Good news for Michigan!  Once again we are reporting a decrease in unemployment and an increase in jobs - at least for the West side of the state.  While it's true Michigan manufacturing is on the decline, industries such as service and health care are on the rise.  This is especially true for the greater Grand Rapids area.  We have seen a rise in for the past two quarters in home sales.  That's the good news.  The great news is it is still a buyers market!  If you have been looking for a home and want to do some research on your own before contacting a realtor check out the Home Scouting Report.  It brings your search to you!

While we have experienced the fall out from risked based mortgage lending, survived the scare of the foreclosure market, seen home sales on the rise, we are still experiencing changes in the conforming mortgage loan market.  Here are a few items to keep in mind when deciding to purchase your dream home:

Mortgage rates are not defined by the Prime Lending Rate.  Mortgage rates are driven by the 10 year bond market.  If stock rates drop, investors usually put their monies into a more secured market such as bonds.  This will increase the bond interest rate and consequently increase mortgage rates.  If you see a rise in the stock market, investors will pull their funds from the bond market causing interest rates to drop and therefore, mortgage rates to also drop. 

Rural development allows repair funds to be escrowed.  However, the new rule is not only 1 1/2 times the highest of two bids.  The borrower must now escrow at least the 1/2 while the seller can still escrow (or conceed from the proceeds) the 1.  

FHA is not what it used to be!!  FHA, a government backed mortgage loan, has developed their program to be consistent with conforming mortgage loans.  A borrower must have 3% down payment but can receive this as a down payment assitance from the seller.  Rates are competitive with standard industry rates.  IT'S A GREAT LOAN FOR ANY BUYER! (most lenders require a minimum 580 credit score - but ask for details!!!!)

Conforming mortgage loans are now requiring in most cases a 5% down payment.

Just a few tid bits to keep you in touch with what is happening in the mortgage industry.  Please feel free to email or call me with any questions.  My hope and desire is to educate you in making the best possible decision for your financial future!