Ann Arbor Mortgage Rates Fall Even Lower!

The mortgage rates for the Ann Arbor area have been down for quite some time now and have dropped even lower than in the past few months.  We should have rates in this range through most of the 1^st and 2^nd quarter of 2012.  What a great time to make an Ann Arbor home or condo purchase and take advantage of these low rates.  We are matching the lows of the year right now.  The buying power is worth $10,000 to $50,000 more in your purchase price with these rates.  You can buy FHA with as little as 3.5% down and we have several conforming programs with 10% down.

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Ann Arbor Mortgage Rates Remain at Historical Lows

*Rates are based on a mortgage of $200,000, 80% LTV, no points and a credit score of 740 or higher.

Ann Arbor mortgage rates have been down for 11 weeks now.  They moved up about .25% 2 weeks ago and just came back down the last few days.  We should have mortgage rates in this range through most of the 4^th quarter.  What a great time to take advantage of these fantastic rates and purchase an Ann Arbor home or condo!  We are matching the lows of the year right now.  The buying power is worth $10,000 to $50,000 more in your purchase price with these rates, which mean more home for you.  FHA loans are also available with as little as 3.5% down and we have several conforming programs with only 10% down.

Please keep in mind that these rates are subject to change without notice. The rates listed above are averages and are presented to provide an illustrative perspective. To find out more about the current interest rates and how these low rates can affect you’re buying power, contact Charlie Chapell with United Bank & Trust today at 734-214-2728 or cchapell@ubat.com.

Although it’s the holiday season, it’s still a great time to take advantage of the low interest rates combined with low home prices! To search for that perfect Ann Arbor real estate, visit our Ann Arbor MLS site here!

Ann Arbor mortgage rates have been down for 8 weeks now.  They moved up about .25% 2 weeks ago and just came back down the last few days.  We should have rates in this range through most of the 4^th quarter.  What a great time to make an Ann Arbor home purchase and take advantage of these low rates!  We are matching the lows of the year right now. Your buying power is worth $10,000 to $50,000 more in your purchase price with these rates.  You can also buy FHA with as little as 3.5% down and we have several conforming programs with 10% down.

*Rates are based on a mortgage of $200,000, 80% LTV, no points and a credit score of 740 or higher.

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Mortgage Rates Continue to Fall

Ann Arbor mortgage rates have hit another low! The mortgage rates have been down for 6 weeks now and at this level for the past 2 weeks.  We should continue to have rates in this range throughout most of the 4^th quarter.  What a great time to make an Ann Arbor home purchase with these lower mortgage payments!  With these rates your buying power has increased by $10,000 – $40,000, depending on your purchase price.

Please keep in mind that interest rates are subject to change without notice. The rates listed above are average rates and are presented to provide an illustrative perspective. To find out more about the current interest rates and which loan program is best for you, contact Charlie Chapell with United Bank & Trust today at 734-214-2728 or cchapell@ubat.com. If you haven’t already taken advantage of the low interest rates combined with low home prices, now is the best time! To search for that perfect Ann Arbor real estate, visit our Ann Arbor MLS site here!

Low Mortgage Rates Return

Mortgage rates have hit another low and have remained at this level for 2 weeks now.  We should continue to see rates in this range for the next several weeks, making this a great time to make an Ann Arbor home purchase with these lower mortgage payments.

Please keep in mind that interest rates are subject to change without notice. The rates listed above are average rates and are presented to provide an illustrative perspective. To find out more about the current interest rates and which loan program is best for you, contact Charlie Chapell with United Bank & Trust today at 734-214-2728 or cchapell@ubat.com. If you haven’t already taken advantage of the low interest rates combined with low home prices, now is the best time! To search for that perfect Ann Arbor real estate, visit our Ann Arbor MLS site here!

Mortgage Lender vs. Mortgage Broker

So you’ve decided to purchase a new Ann Arbor home and have been researching the home buying process on the web. While reading through the many sites, blogs, and pages of information, you may notice the terms ‘Mortgage Lender’ and ‘Mortgage Broker’. While they are the same in many ways, there are also differences between the two. They are similar in that they both council you on the types of loans available, take the mortgage application from you, process the loan, charge lending fees, and make a commission off the mortgage they sell. Following is a brief summary of the difference:

A Mortgage Lender is an individual bank that directly loans you money to purchase a home. This can be especially beneficial if you are using a local lender or already have worked with them in the past. Because you are working directly with that bank, time may be saved during the loan process. Some lenders can offer a portfolio loan, if you don’t fit the normal secondary market rules.

A Mortgage Broker is an intermediary between the lending institution and the borrower. They represent multiple banks. They shop hundreds of lenders to find the best loan package for your situation. This can be very beneficial for those with unique circumstances or problem credit. A mortgage broker can have more flexibility because they are not tied to the constraints of a single institution.

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Do you know? You should!

What’s on your credit report is more important than ever. It is reviewed when you apply for a loan to purchase a home or condo, submit an application to rent an apartment or home, or apply for credit or insurance. A prospective employer may even look at it when you apply for a job!

Did you know that by law, you are entitled to receive a FREE copy of your credit report once a year? And, from all 3 credit bureaus: TransUnion, Experian, and Equifax. There are many companies out there that offer to get your credit report for you and some of them will, but others may try to charge you fees or make you buy unneeded services. For example, the other day I received a letter in the mail from American Express. This is what it said:

Free Credit Report – Your signature below is required to try ID Protect Premium from American Express FREE for the first thirty days so you can get delivery of information regarding your protection benefits which will include the following:

1…Your Free Triple Bureau Credit Report
2…Daily Monitoring Notifications
3…Internet Fraud Monitoring

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Important Information for Ann Arbor Home Buyers & Sellers!

As the nation begins to recover from the recent mortgage and housing bust and we are seeing a loosening of lending practices, FHA loans are a popular choice for Ann Arbor home buyers because they typically require only:

• a 3% down payment
• a minimum FICO Score of 580
• a 10% down payment for new borrowers with less than 580 FICO score

But, qualifying for an FHA home loan is just the first step in the process. The second, and equally important step is the FHA appraisal. You’re wrong to think this is just the problem of the home seller. If the home does not pass this rigorous inspection, your loan will not be approved and you cannot buy the home of your dreams. There must be an FHA approved appraisal report before the FHA will even begin checking the loan requested by the buyer.

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Ann Arbor Homeowners Beware!

Mortgage scams are at an all-time, record high. According to FinCEN (Financial Crimes Enforcement Network), suspicious activity reports were up 31% from the first quarter of 2010. Although this sharp rise is in part attributed to cases going back several years that are just now being uncovered, there is a new scam that Ann Arbor homeowners should be aware – hijacked mortgage payments.

Here’s how it works: the homeowner receives a letter in the mail from Bank B claiming that they have purchased their mortgage from Bank A. The letter states that the homeowner should start sending their loan payments to Bank B, who now holds the mortgage. Since banks buy and sell mortgages on a regular basis, the homeowner may not think this is fraudulent and begins making payments to the ‘new’ bank. They usually don’t realize they’ve been scammed until a month or two later when they’ve missed payments with Bank A.

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The recent mortgage lending crisis spurred lending institutions to do a complete 180 from practices common 5 years ago. Then, anyone could get a loan whether they could afford the payments or not, and many creative financing options were available, including loans that required no documentation of income. Those days are long gone and have been replaced by the opposite scenario where it has become very difficult for a potential home buyer to secure a loan, even with a good financial portfolio.

But recently, it appears that mortgage lending requirements may be loosening and adopting the clean lending policies of a decade ago. As delinquent loans and credit losses are beginning to shrink, lending giant Freddie Mac recorded 1st quarter profits and has claimed that they no longer need government funding. The National Mortgage News also reported that at the beginning of the year, Wells Fargo dropped its credit score requirement for FHA backed loans to around 500. While lending institutions are aware that tightened lending requirements are keeping many eligible buyers from purchasing homes, thus prolonging housing recovery, they are keeping a watchful eye on the economy as they slowly loosen standards.

In a May 10 article in U.S. News and World Report, Keith Gumbinger, VP of mortgage information web site HSH.com, said, “Borrowers have a little bit of a misconception that you can’t get mortgage financing. The mentality of ‘It’s going to be too hard for me to get financing, so I’m not going to bother even looking,’ is persistent.” There are many options for borrowers out there, including:

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