Thursday, February 26, 2009

Current Mortgage Lending Rates - 2/26/09

This week's Mortgage Lending Rates are as follows 2/26/09:

Conforming 30 Year fixed rate is 5.25%
Jumbo 30 year Fixed rate is 6%
5/1 ARM is 5.0
3/1 ARM is 4.25
5/1 Adjustable I/O rate is 5.25%
Jumbo 15 Year Fixed rate is 5.375%

Sunday, February 22, 2009

Remodel Your Kitchen and Bath without Breaking the Bank

Are you thinking of putting your home on the market, but worried about your outdated Kitchen and Baths? When potential homebuyers are searching for homes, they generally are more attracted to homes with these spaces updated. These same rooms rank high in return on remodeling investment at resale, according to Remodeling Magazine’s Cost-vs-Value 2008-09 Study.

However, both can be pricey ventures. According to the same study, the national average for minor kitchen remodel was $21,246. Of course, we know in the Northeast in general and Westport and Weston in particular prices are even higher. A sample remodel at this cost includes replacing cabinet fronts, flooring, and oven and cooktop; installing mid-priced sink and faucet, adding wall cover and repainting trim.

The national average for a mid-range bathroom remodel was $15,899, which includes replacing fixtures, installing a porcelain-on-steel tub, new shower and ceramic tile flooring.
If you’re like many consumers today, you are more budget conscious and may not be able to afford thousands of dollars on a remodeling project. Here are some alternatives that will give your kitchen and bathroom a fresh, modern look without breaking your piggy bank.
KitchenCabinets—Give your cabinets a fresh look by either refinishing or refacing the fronts at a more economical cost than buying new ones. You can even take the center face out and install a glass front.Hardware—Replacing your cabinet knobs and drawer pulls, can give your kitchen an entirely new look.Paint—A fresh coat of paint is always a sure bet. And it is one of the least expensive ways to give a room a makeover. To further transform the room, choose more modern hues, such as a warm yellow or deep red.Countertops—The price of natural quartz or stone countertops can quickly eat away your kitchen remodeling budget. Less expensive, yet still attractive alternatives are solid surface materials such as Silestone® or granite and ceramic tiles.

Faucets and Sinks—Add a fresh new look by replacing your sink and faucet with a high-arched spout in an updated finish, such as brushed nickel, brushed chrome or stainless steel.Backsplash—Another option to modernize your kitchen’s look is adding a backsplash. But rather than having ceramic tiles, consider creating a mosaic with ceramic or glass or install a faux backsplash panel.Window treatments—Switch out older valances with options that let the natural light in.Lighting—By adding under cabinet lights you can create a dramatic look to your kitchen.BathroomPaint—As with the kitchen, a new coat of paint is a low-cost way to renew a room’s look. Choose a warm color to give the room an intimate feel.Showerheads—Change out old showerheads with a new rain showerhead.Shower Doors – If you still use shower curtains for your bathtub, you can update the look by installing glass doors. Frameless doors are preferable. However, if the walls aren’t flush to the tub area, framed doors will still give you the modernized look you’re seeking.Hardware—Just as with the kitchen, replacing the knobs and handles can give your vanity a fresh new appearance.Lighting and Mirrors—In addition to the vanity, the lighting and mirrors can combine to make the perfect focal point for your bathroom. If changing the vanity is not in your budget, consider swapping out your unframed glass for a more decorative mirror and add a new lighting fixture.

You don’t have to spend thousands of dollars to add pizzazz to your kitchen or bath. Just changing one or two elements can make a huge difference in its appeal to you and a potential buyer down the road.

Monday, February 16, 2009

Current Mortgage Lending Rate 2/16/2009

According to Jeff Jensen of Connecticut Home Mortgage, Westport, CT, current home mortgage interest rates are as follows:

Conforming 30 Year fixed rate is 5.125%
Jumbo 30 year Fixed rate is 6.125%
5/1 ARM is 5.0
3/1 ARM is 4.25
5/1 Adjustable I/O rate is 5.25%
Jumbo 15 Year Fixed rate is 5.375%

Friday, February 6, 2009

Current Mortgage Loan Rates 2/5/09

According to Jeff Jensen of Connecticut Home Mortgage current mortgage interest rates are as follows 2/5/09

Conforming 30 Year fixed rate is 5.125%
Jumbo 30 year Fixed rate is 6.125%
5/1 ARM is 5.0
3/1 ARM is 4.375
5/1 Adjustable I/O rate is 5.25%
Jumbo 15 Year Fixed rate is 5.375%

Tuesday, February 3, 2009

You CAN Still Get a Mortgage Loan !

Home prices are becoming more affordable in Westport. However, many are complaining that they cannot take advantage of these great deals because banks are not lending, so they won’t be able to get a mortgage. If you have heard that, you are misinformed! According to Jeff Jensen of Connecticut Home Mortgage,”Despite all the doom and gloom about the mortgage market in the national media, the truth is that mortgage money is plentiful. Because the Federal Reserve (Fed) has committed to buying mortgage bonds called mortgage backed securities (MBS) from Fannie Mae, Freddie Mac and Ginnie Mae, not only is the supply strong but also the rates are low. Rates are so low in fact that some banks have resorted to raising their rates short term in order to slow the demand by consumers seeking to refinance. Although the low rates generated by the MBS purchases directly affect conforming rates (those for loans of $417,000. or less), rates for larger loans, called jumbo loans, are also near historic lows. Not only is the supply of funds readily available for refinancing but for purchases as well. Rarely in the history of the housing industry have potential buyers had such a wonderful opportunity to purchase deeply discounted properties at extremely low interest rates.”

But, what about the outlook for mortgages as the year moves on, you one might wonder. “Since the Fed has committed to buying MBS through June,” Jensen reminds, “I feel that rates should remain in an attractive low range through then. Once that purchasing stops, however, the perceived value of the mortgage securities will be diminished. I am fearful that the cost of the bailout plans will eventually renew fears of inflation and the combination of these two market movers may portend significantly higher interest rates later this year. As housing prices should begin to stabilize later in the year, potential home buyers may be looking at a “once in a lifetime” window of opportunity to acquire real estate for surprising low monthly costs during the next few months. One good measure of whether housing prices are stabilizing is to compare the monthly payment for a property with 20% down to current rents for similar houses in the market place. If purchasing would actually cost less than renting, the market has become stable.”

In today’s market place the details of one’s mortgage worthiness are more important than ever. Jensen explains, “Each mortgage lender has its own guidelines and they have almost universally become more stringent. Important elements of borrower’s worthiness are tests for income, assets, liabilities, credit scores and down payment. Most banks have increased the adjustments for smaller down payment and lower credits scores. The greater the adjustment to the pricing the higher the rate a borrower will be offered. Whereas banks traditionally allowed only 70% of retirement funds to count toward asset reserves, some banks have now started discounting stocks and any other assets other than cash. Debt to income levels have been reduced in many instances, requiring more income to purchase a property. This having been said, buyers who were well qualified six months ago are still well qualified.”

Despite the fact the this crisis gained notoriety as the “sub prime mortgage crisis” with lenders loaning with as little as zero down to poor credit risks with loose documentation, one can still buy a property with as little as 3.5% down. Surprisingly, the down payment can be a gift, meaning you could purchase a house with literally no money down. These programs are now being backed by none other than the federal government. It is true. A homebuyer can now borrow 96.5% of the purchase price of a property with a credit score as low as 580 and the loan will be insured by the Federal Housing Authority. In addition, first time homebuyers are eligible for a $15,000. tax credit, if they conform to the program’s income limits. With prices the way they are today, many opportunities to take advantage of this program may be available in Westport and the surrounding towns. Now is a time to seek an experienced Realtor, who is a skilled negotiator and who knows the values of all elements of the market and to consult with a seasoned mortgage professional rather than reading about the market on the internet. I am available to help guide you through this unique housing market. A Certified Mortgage Planning Specialist, like Jeff Jensen of Connecticut Home Mortgage, (203)-429-1061, is skilled in all elements of the process and will be able to guide you through the morass of forms and details with confidence and security.