When Will Record Low Mortgage Rates End?

According to the Mortgage Bankers Associations' Economic Forecast, these record low interest rates will end within the next few months, with rates to jump back over 5% by the end of 2011. 

Here are the top predictions:

- 30 year fixed mortgage rate will average 4.4% in the fourth quarter of 2010.

- Rates will increase to 4.7% in the first quarter of 2011.

- Rates will climb to 5.1% by the end of 2011.

Mortgage purchases are anticipated to increase.   According to predictions, the mortgage industry is expected to originate an annual $480 billion in purchase mortgages by the end of this year and $626 billion next year, an increase of 30%.

The group also predicted sales of existing homes, on a NATIONAL level.

-  Sales of existing homes are predicted to be down 8% in 2010 from 2009.

-  Existing home sales are anticipated to increase 2% in 2011.

-  Existing home sales will then increase significantly in 2012, by 16%.

New Home sales are predicted to rise even faster.

- Sales of new homes are predicted to finish 2010 about 13% lower than in 2009.

- Sales of new homes are predicted to rise 20% in 2011

- Sales of new homes in 2012 are anticipated at 40% higher than in 2012.

Read the full article here.

Incredibly low interest rates have made homes more affordable than ever before.  Buyers of new homes are interested in low maintanence homes with full warranties, significant energy savings, and workable floor plans. 

The predictions may not be entirely accurate, but one thing's for sure - these record low rates WILL NOT LAST FOREVER.

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Finding Your New Home in the Raleigh Area 

Stanton Homes makes it easy!  We'll guide you through the entire process - select from thousands of different floor plans, and hundreds of different locations, with a focus on new custom homes in the upper $100s to the $500s. Custom design build options available too!

Call 919-278-8070 or visit www.StantonHomes.com to find out more about new homes in the Raleigh area today. 

Articles copyright Stanton Homes 2006-2011.  Unauthorized use is not permitted.  Provided for informational purposes only, no claims are made by Stanton Homes regarding the validity of any statements.  Please note:  all listing information per MLS, and current as of posting date.  Information subject to change.  Stanton Homes does not make claims to ownership of  any lot listings, but can work with homebuyers to purchase available lots and build.  Home plans to be approved on an individual basis, subject to neighborhood restrictive covenants and lot restrictions.  Ask for further information regarding any community, lot or floor plan.  Photos represent typical homes and details of each neighborhood, to help highlight different options available in the Raleigh/Triangle area.  No claim of ownership is made to homes or land pictured.  

How Do Construction Home Loans Work?

Construction Home Loans compared to Permanent Financing | Ask the Financing Expert

Brian Liable, Sr Loan Officer, and Primary Residential Mortgage, answers your home financing questions.

Today's question:

"How do Construction Home Loans Work?"

Construction home loans are short term loans with interest-only payments that are intended to last the length of your new home construction - up to one year.

Your construction home loan can be used to purchase a lot and pay for the home's construction, and you will only have to pay interest in segments.

The construction home loan will be accessed gradually by the custom homebuilder, who can only take out a certain amount of money at a time, as specific portions of the home are completed.  

The construction lender reviews the progress of the home to determine how much of the loan they are willing to give the builder.

Construction Home Loans:  What About when the Home is Complete? 

Once your custom homebuilder has completed your home, you will need to get permanent financing, with terms up to thirty years. 

Typical permanent financing options include:

• Conventional financing (80% of the appraised value or less)
• FHA which requires only 3.5% deposit based on the sales price
• USDA and VA which allow for 100% financing of the sales price. 

All of these types of financing options can be used to pay off construction loans. 

Construction Home Loans:  Is Construction Financing Available?

Yes, a variety of construction home loans are available, with many different options.  Call Brian at 919-256-3133 for more details.

How Construction Home Loans Work | Ask The Expert

Stanton Homes continues to offer the information you're looking for.  Check back for more construction home loan and other financing questions from our new "Ask the Expert" column, where Brian Laible, Senior Loan Officer for Primary Residential Mortgage, will answer financial questions like "What type of down payment is required?" and "Are one time close products available?"  

Send us YOUR questions to "Ask Brian", and look to Stanton Homes for the answers you need.

Brian Laible - Ask Brian!

Sr. Loan Officer, Primary Residential Mortgage

701 Exposition Place, Suite 118, Raleigh, North Carolina 27615

919.256.3133

*Stanton Homes is not a lender, not offering lending advice, and is not affiliated with Primary Residential Mortgage.  For answers to lending questions, contact a trusted lender.

Finding Your New Home in the Raleigh Area 

Stanton Homes makes it easy!  We'll guide you through the entire process - select from thousands of different floor plans, and hundreds of different locations, with a focus on new custom homes in the upper $100s to the $500s. Custom design build options available too!

Call 919-278-8070 or visit www.StantonHomes.com to find out more about new homes in the Raleigh area today. 

Articles copyright Stanton Homes 2006-2011.  Unauthorized use is not permitted.  Provided for informational purposes only, no claims are made by Stanton Homes regarding the validity of any statements.  Please note:  all listing information per MLS, and current as of posting date.  Information subject to change.  Stanton Homes does not make claims to ownership of  any lot listings, but can work with homebuyers to purchase available lots and build.  Home plans to be approved on an individual basis, subject to neighborhood restrictive covenants and lot restrictions.  Ask for further information regarding any community, lot or floor plan.  Photos represent typical homes and details of each neighborhood, to help highlight different options available in the Raleigh/Triangle area.  No claim of ownership is made to homes or land pictured.  

Fees and interest rates are about to go up, with government-mandated changes that can cost unaware home buyers thousands.

Both FHA funding and interest rates are set to change - and not in the direction many homebuyers would like to see. 

This information is from Bill Dixon, a real estate agent with Zip Realty in Raleigh NC.

"Important FHA information for home buyers, A must read!

Those who wait will pay thousands more or not be able to buy this spring.

Important potential home buyer's information:

Waiting a few extra days or weeks to purchase a home this spring could cost buyers thousands of extra dollars as the office of Housing and Urban Development (HUD) implements several changes for loan guaranteed by the Federal Housing Authority (FHA)

Changes that will affect home buyers:

    1. On April 5^th, the cost of up-front MIP (mortgage insurance premium) will go up from

        1.75% to 2.25%. A purchase of a $200,000 home will have typically $965 increase in

        PMI .This will make up front cost more and will affect monthly payments.

    2. Later this spring, the amount of money that a seller can return to a buyer from the

        proceeds of the sale will be reduced from 6% to 3%. This loss of buyer concessions on a

       $200,000 home could cost the buyer an extra up-front out of pocket closing experience

        of $6,000.

Proposed changes that could be coming:

HUD Secretary Donovan and FHA Commissioner testified that they expected FHA to announce major changes to ensure FHA's long term financial soundness.

1.     Increase the down payment required from 3.5% to 5%.

2.     Eliminate the ability to roll into the loan MIP

3.     Raise minimum FICO scores.

4.     Possibly LTV (loan to value) maximums to FICO scores

5.     Increase accountability of FHA Lenders for fraud.

These changes come into effect a long about the time the present Tax Rebate deadline is reached. This is a double whammy on "waiting for the right time buyers." Interest rates are at historic lows but cyclical trends suggest they will soon rise. Home buyers may never see such a chance again."

Thanks Bill for sharing these upcoming changes and proposed changes.

Bottom line - stay in touch with a good lender, and have that preapproval ready.  Interest rates are at historic lows, and won't get lower.  Inventory is reducing, and pricing is just starting to creep back upwards. 

Any questions?

Finding Your New Home in the Raleigh Area 

Stanton Homes makes it easy!  We'll guide you through the entire process - select from thousands of different floor plans, and hundreds of different locations, with a focus on new custom homes in the upper $100s to the $500s. Custom design build options available too!

Call 919-278-8070 or visit www.StantonHomes.com to find out more about new homes in the Raleigh area today. 

Articles copyright Stanton Homes 2006-2011.  Unauthorized use is not permitted.  Provided for informational purposes only, no claims are made by Stanton Homes regarding the validity of any statements.  Please note:  all listing information per MLS, and current as of posting date.  Information subject to change.  Stanton Homes does not make claims to ownership of  any lot listings, but can work with homebuyers to purchase available lots and build.  Home plans to be approved on an individual basis, subject to neighborhood restrictive covenants and lot restrictions.  Ask for further information regarding any community, lot or floor plan.  Photos represent typical homes and details of each neighborhood, to help highlight different options available in the Raleigh/Triangle area.  No claim of ownership is made to homes or land pictured.