Oct
28
2008
Homeownership may be the most important asset-building strategy for individuals. The value of homeownership gives homeowners a feeling of control, a greater sense of security and stability.
Homeownership is typically given a lot of importance and homeowners are generally allowed to do whatever they wish in their homes. Homeowners have the right to make choices and decisions regarding changes to their homes that renters may not be able to make.
Homeownership is a financial goal most families share. There are significant community benefits to homeownership as well. Owning a home gives residents a stake in the community and a sense of “rootedness” in their neighborhoods. Enjoying the privacy that a home brings, making long lasting friendships with neighbors and best of all taking pride in your home. The pride you’ll feel in owning and improving your home is an emotional value that cannot be expressed in dollars and cents. The value of homeownership has been thought to pro-mote thrift, stability, and neighborliness.
Homeownership is thought to be an important element in achieving personal fulfillment. When asked to define the good life, polls have shown that many Americans value owning a home over such factors as an automobile, a happy marriage, an interesting or high-paying job, and good health. The value of homeownership is credited with increasing self-esteem, life satisfaction, and an overall feeling of worth. Owning a home embodies the promise of individual independence but there are also many responsibilities that come with owning a home. The value of homeownership has been thought to pro-mote thrift, stability, and neighborliness.
If you are looking to buy your own home in St. Louis, Webster Groves, Kirkwood Missouri areas, these are some points to consider when seeing the value of homeownership. Allow me, your Real Estate agent, Sandie Hea to help you see the value of homeownership.
Oct
10
2008
On the Frontline with the Home Mortgage Market
How the Fannie and Freddie takeover affects you.
Reported By Holden Lewis for Bankrate.com.ST. LOUIS, MO - There has been many stories of gloom and doom in the media concerning the U.S. financial climate over the past few weeks. How does this affect the average St. Louis home buyer? Have mortgage funds dried up?
“The mortgage market is not as bad as the media is portraying it,” remarks Jeff Griege, Vice President at Paramount Mortgage, “so, as the phrase goes, don’t believe the hype!” When you apply a common sense perspective to the situation it is “honestly, no different now than it was six months ago,” continues Griege.
There is plenty of money to lend to the mortgage market - The government takeover of Fannie Mae and Freddie Mac is designed to put downward pressure on mortgage rates and to ensure that home loans remain available. With Freddie and Fannie under control, mortgage funds will not dry up.
Treasury Secretary Henry Paulson says the government has three objectives: “market stability, mortgage availability and taxpayer protection.” That’s another signal that the government wants mortgages to remain available, at good rates, to borrowers with a low risk of default.
The Paramount Mortgage perspective - Since the bailout of Fannie and Freddie rates have dropped on average .5% to .75%, subject to daily market fluctuations. “What has changed over the last six months is that anyone with a credit score under 720 will get a slightly higher rate. On average, this will consist of an additional .125% increase on a conventional loan,” stated Griege. Additionally, “FHA’s rate adjustment cutoff is a credit score of 620.”
The conventional adjustment is not dramatic considering rates are still at 25-year lows. Anyone with a credit score under 680 will find it better to finance with a FHA-backed loan instead of a conventional loan especially if your down payment is less than 20% of the purchase price. The rate adjustment for credit scores under 680, on a conventional loan, could consist of an additional .75% added to the rate. FHA’s maximum loan limit for the St. Louis metro area is $281,250.
According to Griege, “the only areas in the mortgage markets that are suffering are the Jumbo loans (loans above $417,000). Fixed rates are in the high 7’s to low 8’s with at least 20% down.” ARMs (Adjustable Rate Mortgage loans) are good options with rates around the Mid 6’s, but a minimum down payment of 10% is required and preferably 20%. Bottom line - people with reasonable credit purchasing a home under $417,000 can still get financing.
Source Link: Takeover Affects
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TODAY’S MORTGAGE RATES
Conventional 30-Year Fixed 6.500%
Conventional 15-Year Fixed 6.125%
Conventional 3/1 ARM 6.625%
FHA 30-Year Fixed 6.500%
JUMBO 3/1 ARM 6.750%
JUMBO 5/1 ARM 7.000%
Rates posted 10-10-08. Rates subject to change.
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BIG NEWS: St. Louis Area’s FHA Loan Limit Raised to $281,250
New FHA Mortgage Maximums:
One-Family: $281,250
Two-Family: $360,050
Three-Family: $435,200
Four-Family: $540,850
Lender of the Year
Awarded by the Missouri Housing Development Commission
Thank you for giving me the opportunity to share this information with you. I hope you find it helpful!
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Sincerely,Jennifer Williams
Paramount Mortgage Company
347 North Lindbergh Boulevard
Creve Coeur, MO 63141314.372.4377
Email: jwilliams@paramountmortgage.com
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