After an unfriendly attack from some hackers last month, we’re back in business on thesilvagroup.net. Please pardon the mess as we get the website straightened out and back the way we like it. If you have any questions about real estate in Nashville, please get in touch with kenny at kenny@thesilvagroup.net or (615)425-3600.
Today, FHA commissioner David Stevens announced a set of changes to the FHA loan program in an attempt to secure and strengthen its financial standing.
With a low 3.5% down payment requirement, FHA insured loans have become the go-to loan for cash-strapped home buyers. As a result, the FHA’s capital reserve fell below it’s congressionally mandated 2% minimum.
Officials also plan to clamp down on lenders offering FHA mortgages. They will more closely monitor their performance and compliance with agency rules, as well as seek legislative authority to require mortgage firms to assume liability for all loans they originate and underwrite.
How does this affect you, the home buyer?
Well, you’re going to pay a little more for your up-front mortgage insurance premium.
Also, if your FICO score is below 580, you’ll need to come up with 10% down as opposed to 3.5%.
Finally, the seller will only be allowed to contribute up to 3% of the purchase price toward your closing costs. The difference will be the responsibility of you, the buyer. Closing costs typically come in under 3%, so this shouldn’t be too frightening, but is good to know.
Call or email me to further discuss how this might affect your home purchase.
Kenny Silva
Real Estate Consultant
Silva Real Estate Group
www.thesilvagroup.net
Cell:(615)336-6638
Office:(615)425-3600
Fax:(615)690-8721
Email:kenny@thesilvagroup.net
Facebook:http://bit.ly/7ZU3cI
Twitter:http://www.twitter.com/kennysilva
LinkedIn:http://www.linkedin.com/in/silvareg
Keller Williams Realty
30 Burton Hills Blvd Suite 175
Nashville, TN 37215
Property Listed By:
Kenny Silva
Real Estate Consultant
Silva Real Estate Group
www.thesilvagroup.net
Cell:(615)336-6638
Office:(615)425-3600
Fax:(615)690-8721
Keller Williams Realty
30 Burton Hills Blvd Suite 175
Nashville, TN 37215
Hey All,
The new site is up and running at www.thesilvagroup.net!!!
All of my future blog posts will be on this site. Please update your blog readers. Thanks!!!!
Kenny Silva
Real Estate Consultant
Silva Real Estate Group
www.thesilvagroup.net
Cell:(615)336-6638
Office:(615)425-3600
Fax:(615)690-8721
Email:kenny@thesilvagroup.net
Facebook:http://bit.ly/7ZU3cI
Twitter:http://www.twitter.com/kennysilva
LinkedIn:http://www.linkedin.com/in/silvareg
Keller Williams Realty
30 Burton Hills Blvd Suite 175
Nashville, TN 37215
1801 Riverside Drive
Nashville, TN 37216
Bed(s): 3
Bath(s): 2
Type: Single Family Home
Sq/Ft: 1,223
Open floor plan, updated kitchen and bathrooms, refinished hardwood floors, spacious front and rear deck. Great location- walking distance to restaurants!
Although some renters believe that renting is “maintenance free,” they are actually paying for maintenance in their rent – whether they need it or not. Renting offers you no equity, no tax benefit, and no protection against regular rent increases. If you’re paying rent, you’re really just paying someone else’s mortgage. Let’s compare.*
As you can see, not only are you paying less, but your money is actually going toward the equity in your home! In other words, when you decide to move a few years down the line, you get back the equity you put in! When you rent, that money goes away; never to return.
I just got an email from one of the loan officers I work with.
His bank’s current rates are:
30 year fixed 4.75% with no points
15 year fixed 4.25% with no points
5/1 ARM 3.875% with no points
These numbers are absolutely incredible. Considering the low cost of borrowing money and a free $8000 check from the government, you won’t find a better time to buy than now.
Opportunity is knocking hard. It won’t keep knocking for long, however, because rates are poised to start ramping back up in the next few months. Check out my previous post; it talks all about that.
Give me a call and let’s talk about how you can stop throwing your money away on rent and start owning a home before we miss out on these great rates!
Lately, I’ve been harping on the fact that none of us can reliably predict the actions of the Federal Reserve. Their finger is on the button, and when they push it we can find ourselves reminiscing about the days of the 5% mortgage.
In an article published by the National Association of Realtors, Denis Salamone, COO of Hudson City Bancorp, predicted that home loan rates below 5 percent are about to disappear. According to Salamone, if the Fed buys less and less mortgage-backed securities, the banks will have to raise rates.
What does this mean to you?
The time to act is now! If you’re still on the fence about whether or not you should buy a home, you should really consider the impact raising interest rates have on your buying power. A rate hike as little as 1% can have an 11% negative impact on the amount of house your money gets you!
Be proactive! Now is a great time to buy. Find that perfect house and snatch it up before someone else does!
This is by no means a piece of original work. This list has been floating around the web for some time. I just wanted to share it with all of those would-be home sellers this holiday season. Enjoy!
11. By selling now, you may have the opportunity to be a non-contingent buyer during the spring, when many more houses are on the market for less money! This will allow you to sell high and buy low!
10. You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year!
9. Even though your house will be on the market, you still have the option to restrict showings during the six or seven days around the Holidays!
8. January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until Spring to buy, you need to be on the market during the Holidays to capture that market!
7. Some people must buy before the end of the year for tax reasons!
6. Buyers have more time to look for a home during the holidays than they do during the working week!
5. Buyers are more emotional during the Holidays, so they are more likely to pay your price!
4. Houses show better when decorated for the Holidays!
3. Since the supply of listings will dramatically increase in January, there will be less demand for your particular home! Less demand means less money for you!
2. Serious buyers have fewer houses to choose from during the Holidays and less competition means more money for you!
And the number one reason…..
1. People who look for homes during the Holidays are more serious buyers!
As the winter months creep in, real estate activity has had the historic tendency to slow down. The weather gets colder, planning for the holidays takes up a lot of our time, and most people push the thought of buying a new home to the backs of their minds. This reduction in buyer activity leads to frustration on the part of home-sellers, because they just can’t seem to get their homes sold. Some decide to take their homes off the market and wait for better weather in Spring. Buyers anticipate this market shift and wait until Spring to start looking for a home, searching for the better deals that accompany the impending increase in inventory.
Unfortunately, these natural tendencies can work against you if you are in the market for a new home. With interest rates at historic lows, the buyer is stronger than ever. Your money has more purchasing power now than it ever has before. It is very important to note that these interest rates will not stay at their current levels. Increased home sales, coupled with an ever-increasing national debt, will drive the Federal Reserve to increase index rates in the near future. The result passed on to home-buyers will be a significant decrease in buying power.
Take the following example:
Buyer A finds his or her dream house on November 15,2009.
Purchase price is $150,000 on a 30-year loan with a 5% interest rate.
Under these conditions, this buyer will pay $805.23 a month on principal and interest. After 30 years, the buyer will have paid $139,883.68 in interest in addition to the original loan amount, a total of $289,883.68.
Now lets say that Buyer A waits until February, 2010.
Congratulations, Buyer A, you managed to get that same home for $142,500! You saved 5% on the purchase price, a nice chunk of change! However, the Fed decided to rase interest rate by 1%, effective January 1st. Now lets do the math…
Purchase price is $142,500 on a 30-year loan with a 6% interest rate.
Under these new conditions, the buyer pays $854.36 a month. Hmm, you’d think 5% savings on your home purchase price would save you some on your monthly payment. It gets worse… After 30 years, you will have paid $165,069.42 in interest!! That brings your total payment to $307,569.42.
When it’s all said and done, you pay an extra $17,685.74 over the life of the second loan. Congratulations, Buyer A, you lost at total of $10,435.74 after subtracting out your “savings” on the deal.
In summary, after waiting a few months for a better deal, Buyer A does manage to get the price down on his new home, but at what cost? His monthly payment was about $50 higher and he ended up paying an extra $10,435 for the same home.
Are you comfortable with these numbers? What if you were purchasing a home for $250,000? How about $400,000? The amount you would lose waiting gets exponentially worse the more you spend.
Long story short, waiting for that supposed “deal” in the spring could be a terrible financial mistake for the aspiring home-buyer. Do yourself a favor, if you’re looking for a home, do it now! “Strike while the iron is hot” and find yourself the most house for the least money with today’s outrageously low interest rates.