Archive for the ‘Mortgage/Financing News’ Category

Tuesday, April 9th, 2013

For the seventh month in a row, the National Association of Home Builders Index has reported positive improvement for metropolitan areas as identified in its monthly Home Builders/First American Improving Markets Index (IMI) listing.

This past month, Birmingham made the list as one of the 274 metros newly listed in March. The addition of the 200+ metropolitan areas creates a net gain of 15 markets across all 50 states and DC, from the month prior. In February, Birmingham metro area reported a rise 2.8% increase in residential sales and in January it experienced a 10.5% gain in new home sales. This is a 14.3% increase from new home sales in 2012.

“The Birmingham housing market has experienced a steady increase in the number of new homes under construction with decreasing inventory of finished unoccupied homes. These numbers prove that we have reached a stead recover,” said Matt Morrow, Executive Vice President of the Greater Birmingham Association of Home Builders (GBAHB).

NAHB Chief Economist David Crowe reports that “with just over 75% of the 361 metro covered by the IMI now seen as improving, the housing market is on considerably more solid footing than it was at this time last year.”

This listing is published monthly by the NAHB and features metropolitan areas that have shown improvements in economic health. The IMI tracks housing markets in the country, showing improvements in economic health. The index measure three sets of monthly data, gathered independently, to get a mark on the top improving Metropolitan Statistical Areas.

For more information, visit: nahb.org/imi

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Posted in Alabama Home Sales, Birmingham New Homes, Birmingham News, Buying A Home, Financial News, Housing Market News, Mortgage/Financing News, New Homes Alabama | Comments Off

Wednesday, April 3rd, 2013

Tax season is officially over! To share our excitement with you, we’ve compiled some information on how to prepare for next year’s tax season—after all, it’s never too early to start the planning process.

If you’re selling a home, in order to purchase your new home at Ross Bridge, you can add the price of materials and labor—used for home improvements such as plumbing, wiring or a new roof—to the basis of your home, thus reducing the tax owed on the sale of your home.

Don’t forget about the best tax deduction of all! If you just purchased a wonderful new home here at Ross Bridge, you can deduct your real estate taxes, qualifying mortgage interest, and any mortgage interest premiums.

When you purchased your new home, chance are you are paying some type of Private Mortgage Insurance, if your down payment was less than 20%. As long as your mortgage originated after January 1, 2007, your PMI can be deducted from your tax return, assuming of course that you have a PMI.

If you paid mortgage points on your home purchase or home refinance, those points may be eligible for deduction on your tax return too. These points are generally referred to as origination fees and are charged by the lender to originate the loan. The points are often a percentage-based fee and can usually be deducted in their entirety when paid the same year.

Love working at your desk in your pajamas? If your primary office is your home, you might be able to deduct your home office. It should be calculated as a percentage of your mortgage, utilities and repair bills in proportion to your office space in your home.

For more information, check out Realtor.com and the IRS website for specifics. (IRS LINK: http://www.irs.gov/pub/irs-pdf/p530.pdf)

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Posted in Alabama Home Sales, Birmingham New Homes, Buying A Home, Financial News, Housing Market News, Mortgage/Financing News, New Homes Alabama | Comments Off

Tuesday, October 9th, 2012

According to the National Association of Realtors, fixed-rate mortgages hit new all-time lows last week for the second week in a row, as reported by Freddie Mac in its weekly mortgage market survey.  This drop in rates has been mostly attributed to the recent decision made by the Federal Reserve to buy up $40 billion of mortgage-backed securities each month, and Freddie Mac reports the following national averages with mortgage rates for the week ending October 4, 2012:

A 30-year fixed-rate mortgage averaged a new record low of 3.36%, with an average 0.6 point,  dropping from the previous week’s record of 3.40%.  A year ago this time, 30-year mortgages averaged 3.94%.

A 15-year fixed-rate mortgage averaged a new record of 2.69%, with an average 0.5 point, dropping from the previous week’s record low of 2.73%.  Last year at this time, 15-year rates averaged 3.26%.

With fixed mortgage rates hitting record lows for two consecutive weeks, current market conditions present a favorable time for potential home buyers to consider purchasing new homes for sale while the low rates last.  Homeownership can be a rewarding investment both personally and financially, and those looking to buy in new home communities in Birmingham, AL, have the opportunity to take advantage of low mortgage rates before both home prices and rates rise begin to rise higher.

 

 

 

 

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Posted in Buying A Home, Financial News, Housing Market News, Mortgage/Financing News | Comments Off

Thursday, December 2nd, 2010

As the real estate market continues to improve and current market conditions give buyers a greater advantage, many of those who had previously been wary or downright nervous about buying new homes in Birmingham are starting to look to the near future. Average home prices in Birmingham are on the rise once again and the outlook for 2011 is positive as we close out the 4rth Quarter. First-time home buyers are are seeking out responsible financial options to take advantage of the current market. One such option is an FHA loan (Federal Housing Administration).

To assist home buyers, the US Department of Housing and Urban Development has put together a checklist entitled "100 Questions & Answers About Buying A New Home." Below is a snippet of this checklist which answers some questions home buyers may have about FHA loans.

WHAT IS THE FHA?
Now an agency within HUD, the Federal Housing Administration was established in 1934 to advance opportunities for Americans to own homes. By providing private lenders with mortgage insurance, the FHA gives them the security they need to lend to first-time buyers who might not be able to qualify for conventional loans. The FHA has helped more than 26 million Americans buy a home.

HOW CAN THE FHA ASSIST ME IN BUYING A HOME?
The FHA works to make homeownership a possibility for more Americans. With the FHA, you don't need perfect credit or a high-paying job to qualify for a loan. The FHA also makes loans more accessible by requiring smaller down payments than conventional loans. In fact, an FHA down payment could be as little as a few months rent. And your monthly payments may not be much more than rent.

HOW IS THE FHA FUNDED?
Lender claims paid by the FHA mortgage insurance program are drawn from the Mutual Mortgage Insurance fund. This fund is made up of premiums paid by FHA-insured loan borrowers. No tax dollars are used to fund the program.

WHO CAN QUALIFY FOR FHA LOANS
anyone who meets the credit requirements, can afford the mortgage payments and cash investment, and who plans to use the mortgaged property as a primary residence may apply for an FHA-insured loan.

WHAT IS THE FHA LOAN LIMIT?
FHA loan limits vary throughout the country, from $115,200 in low-cost areas to $208,800 in high-cost areas. The loan maximums for multi-unit homes are higher than those for single units and also vary by area.
Because these maximums are linked to the conforming loan limit and average area home prices, FHA loan limits are periodically subject to change. Ask your lender for details and confirmation of current limits.

WHAT ARE THE STEPS INVOLVED IN THE FHA LOAN PROCESS?
With the exception of a few additional forms, the FHA loan application process is similar to that of a conventional loan (see Question 47). With new automation measures, FHA loans may be originated more quickly than before. And, if you don't prefer a face-to-face meeting, you can apply for an FHA loan via mail, telephone, the Internet, or video conference.

HOW MUCH INCOME DO I NEED TO HAVE TO QUALIFY FOR AN FHA LOAN?
There is no minimum income requirement. But you must prove steady income for at least three years, and demonstrate that you've consistently paid your bills on time.


HOW LARGE A DOWN PAYMENT DO I NEED WITH AN FHA LOAN?
You must have a down payment of at least 3% of the purchase price of the home. Most affordable loan programs offered by private lenders require between a 3%-5% down payment, with a minimum of 3% coming directly from the borrower's own funds.

WHAT TYPES OF CLOSING COSTS ARE ASSOCIATED WITH FHA-INSURED LOANS?
Except for the addition of an FHA mortgage insurance premium, FHA closing costs are similar to those of a conventional loan outlined in Question 63. The FHA requires a single, upfront mortgage insurance premium equal to 2.25% of the mortgage to be paid at closing (or 1.75% if you complete the HELP program- see Question 91). This initial premium may be partially refunded if the loan is paid in full during the first seven years of the loan term. After closing, you will then be responsible for an annual premium – paid monthly – if your mortgage is over 15 years or if you have a 15-year loan with an LTV greater than 90%.

For many other great home buying questions and answers and to read the full original article, visit

http://www.hud.gov/offices/hsg/sfh/buying/buyhm.cfm#How

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Friday, June 4th, 2010

As real estate conditions continue to improve nationwide, a few simple signs give proof that the worst may be behind the Birmingham new homes market. Below, Jeff Clabaugh, with the Birmingham Business Journal writes about current mortgage rates and credit conditions:

The residential real estate industry is counting on low mortgage rates to stimulate sales, but long-term borrowing costs inched up this week, according to Freddie Mac.

Freddie Mac (NYSE: FRE) says a 30-year fixed-rate mortgage averaged 4.79 percent in the week ending June 3, up from 4.78 percent last week, just above the lowest levels of the year.

A 15-year fixed-rate mortgage averaged 4.2 percent, the lowest since Freddie Mac began tracking 15-year mortgages in 1991.

A one-year adjustable-rate mortgage was unchanged at 3.95 percent, considerably lower than the 4.81 percent one-year ARMS were averaging a year ago.

“There are also signs that credit conditions may be improving,” said Freddie Mac chief economist Frank Nothaft. “The number of homeowners with private mortgage insurance who became current on their mortgages outnumbered those who defaulted for the third month in a row in April, according to the Mortgage Insurance Companies of America.”

Pending sales of existing homes in April rose 6 percent, the third straight monthly increase, reaching the highest levels in six months, the National Association of Realtors reported this week.

The homebuyer tax credit expired at the end of April, leaving low mortgage rates as the main incentive for buyers entering the market.

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