Cincinnati Mortgage Market Presented by Kim Schieldknecht - LO.002028.000, MB.802245.000 of Clermont Financial LLC Mortgage Market Update: The Unites States Federal Reserve has lowered the federal funds rate again by 50 basis points. The new rate now stands at 1 percent, a 5-year low. Mortgage rates, on the other hand, moved in the opposite direction. Frank Nothaft, chief economist for Freddie Mac, explains, "Long-term mortgage rates followed long-term Treasury bond yields higher last week, pushing fixed-rate mortgages up." The 30-year, fixed rate mortgage now hovers in the mid 6 percent range. The National Association of Realtors (NAR) reported some good news in October as existing home sales increased over 5 and a half percent -- a sign of improved housing affordability. The estimated annual volume has been revised upwards to 5.18 million units for 2008, representing a 1.4 percent increase over the previous year. The combination of lower prices, higher inventory and relatively low mortgage rates have all contributed to the increase in sales. Total housing inventories were down 1.6 percent for the month of September, marking two consecutive monthly declines since inventory levels peaked in July. Finance Q and A: Q: How does the lender decide the maximum loan amount that I can afford? A: The lender considers your debt-to-income ratio, which is a comparison of your gross (pre-tax) income to housing and non-housing expenses. Non-housing expenses include such long-term debts as car or student loan payments, alimony, or child support. According to the FHA, monthly mortgage payments should be no more than 28% of gross income, while the mortgage payment, combined with non-housing expenses, should total no more than 36% of income. The lender also considers cash available for down payment and closing costs, credit history, and other factors when determining your maximum loan amount. Contact your mortgage professional for current loan program details. Tip of the Month: Why rent a house when you can buy? Home ownership offers many benefits. When you make a mortgage payment, you are building equity. And that's an investment. Owning a home also qualifies you for tax breaks that assist you in dealing with your new financial responsibilities- like insurance, real estate taxes, and upkeep- which can be substantial. Given the freedom, stability, and security of owning your own home, home owners make a significant investment in their long-term security. Contact your mortgage professional today and learn how to maximize today's housing opportunities.  |
Kim Schieldknecht - LO.002028.000, MB.802245.000
Clermont Financial LLC
726 Mohawk Trail & 5720 gateway blvd #204
Milford and Mason, OH 45150
(513)587-3599
http://www.clermontfinancial.com | |
| | National Statistics Updated 11/1/2008 | | |
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