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February 27, 2004Mortgage Interest RatesPlease contact Anthony Pipitone Mortgage Rates for February 26th, 2004 RLCA Conventional Jumbo 3/1 ARM Jumbo FHA 15 Year Fixed FHA 30 Year Fixed FHA
Ask about our: 2350 E.Devon Ave. Suite 310 Des Plaines, IL 60018 Equal Housing Lender. Illinois Residential Mortgage Licensee. Posted by at 12:32 PM
February 24, 2004Loan ScamDon't Be a Victim of Home Loan Scam
The scam targets those who don't understand the home mortgage lending process or who think they can get something -- a new roof or kitchen -- for just about nothing, meaning less than what they are currently paying in mortgage payments. Here is the scenario, according to the Federal Trade Commission (FTC): A contractor drops off fliers, calls or knocks on the door and offers to install a new roof or remodel the kitchen at a price that sounds reasonable. You tell him you are interested, but cannot afford it. He tells you that is no problem -- he can arrange financing through a lender he knows. You agree to the project, and the contractor begins work. At some point, you are asked to sign a lot of papers. The papers may be blank or the lender may rush you to sign before you have time to read. You sign. Later, you realize that the papers are a home equity loan and the interest rate, points and fees seem too high. To make matters worse, the work on your home is not done right or has not been completed, and the contractor, who may have been paid by the lender, has little interest in completing the job to your satisfaction. To protect against lending scams, FTC says: Don't agree to a home equity loan if you don't have enough money to make the monthly payments. Don't sign any document you haven't read or any document that has blank spaces to be filled in after you sign. Don't let anyone pressure you into signing any document. Don't deed your property to anyone. Don't agree to financing through your contractor without shopping around and comparing loan terms. ****For More Information Contact Anthony Pipitone at 312-492-3239**** Posted by at 04:59 PM
February 20, 2004Mortgage Interest RatesPlease contact Anthony Pipitone Mortgage Rates for February 19th, 2004 RLCA Conventional 3/1 ARM Conventional Jumbo 3/1 ARM Jumbo FHA 15 Year Fixed FHA 30 Year Fixed FHA
Ask about our:
Equal Housing Lender. Illinois Residential Mortgage Licensee.
Posted by at 01:23 PM
Mortgage rates plunge to 7-month lowsInman News Thursday, February 19, 2004
In Freddie Mac's weekly survey, the 30-year fixed-rate mortgage averaged 5.58 percent for the week ended today, down from 5.66 percent last week. This is the lowest the 30-year fixed-rate mortgage has been since the week ending July 11, 2003, when it was 5.52 percent. The average for the 15-year fixed-rate mortgage this week is 4.87 percent, down from last week's average of 4.96 percent. This is the lowest the 15-year fixed-rate mortgage has been since the week ending July 11, 2003, when it was 4.85 percent. Points on both the 30- and 15-year averaged 0.6. One-year Treasury-indexed adjustable-rate mortgages averaged 3.53 percent this week, with an average 0.6 point, down from 3.57 percent last week. This is the lowest the one-year ARM has been since the week ending July 4, 2003, when it averaged 3.49 percent. "Mortgage rates this week are at seven-month lows and teetering on the 45-year-low levels of last summer," said Frank Nothaft, Freddie Mac chief economist. "There continues to be no sign of inflation on the horizon and, as a matter of fact, core inflation is at a generational low. The average 30-year fixed mortgage rate is now the lowest since July 2, 2003. The mortgages in this week's survey had an average of 0.35 discount and origination points. The 15-year fixed-rate mortgage popular for refinancing dropped by a similar amount, from 5.02 percent to 4.91 percent. The jumbo 30-year fixed-rate mortgage sank 14 basis points to 5.78 percent, while the one-year adjustable-rate mortgage fell 10 basis points to a record low of 3.6 percent. A basis point is one one-hundredth of one percentage point. Mortgage rates moved lower over the past week in response to several factors. Among them were: Alan Greenspan's Congressional testimony that repeated the Fed's intent to keep interest rates low; prevailing uncertainty in the job market; and continued purchases of Treasury securities by foreign central banks amid the dollar's decline. The combination pushed bond yields and mortgage rates lower. Mortgage rates are closely related to the yields on long-term government bonds. The following is a sampling of Bankrate's average 30-year-mortgage interest rates this week in some U.S. metropolitan areas. New York ? 5.68 percent with 0.05 point Los Angeles ? 5.54 percent with 0.58 point Chicago ? 5.67 percent with 0.15 point San Francisco ? 5.61 percent with 0.43 point Philadelphia ? 5.58 percent with 0.13 point Detroit ? 5.47 percent with 0.46 point Boston ? 5.69 percent with 0.03 point Houston ? 5.51 percent with 0.65 point Dallas ? 5.51 percent with 0.61 point Washington, D.C. ? 5.53 percent with 0.44 point
Posted by at 11:39 AM
February 17, 2004PMI's Tax Deductible?Mortgage Insurance Deductibility Bills To Get Big Push Before Election
But don't bet your house on it -- after all, Congress is involved and it's an election year. But proponents of mortgage insurance deductibility say they've got heavier-duty support than ever before, and they plan to push hard for legislation during the coming several months before the congressional and Presidential elections. The Mortgage Insurance Fairness Act (H.R. 1336 and S 846) now has 161 bipartisan cosponsors in the House, and solid bipartisan support in the Senate. It also has an unusually broad-based coalition of business, labor and public interest groups rallying behind it, including the Financial Services Roundtable, the National Urban League, the Mortgage Bankers Association of America, the National Taxpayers Union, the Consumer Federation of America, the Fraternal Order of Police, and the National Education Association and the Teamsters. The legislation would nullify a long-time IRS policy position that prohibits homeowners from taking write-offs of mortgage insurance payments on their federal taxes. The Mortgage Insurance Fairness Act would permit deductions of premiums for home loans with private mortgage insurance, Federal Housing Administration (FHA) insurance, VA (veterans guaranty coverage) and Rural Housing Service mortgages. Proponents of deductibility say the IRS ban ignores the functional similarity of mortgage insurance premium payments with mortgage interest payments, which are generally fully deductible. The net result of the policy, they say, is that millions of first-time buyers, moderate income homeowners and other users of mortgage insurance pay hundreds of dollars more in federal taxes per year than they would if they could deduct their monthly loan premiums along with the interest. Hector Flores, president of the League of United Latin American Citizens (LULAC), an outspoken advocate for deductibility, says the legislation would be especially important for minority groups who make heavy use of FHA and private mortgage insurance-assisted low downpayment loans to buy their first houses. "Tax deductibility for mortgage financing has been a major reason the U.S. enjoys such a high rate of homeownership," he said. "But many Americans, especially those in minority communities, haven't been able to share in this aspect of the American dream." The mortgage insurance industry estimates that 57 percent of all home purchase mortgages made to Hispanic and African American borrowers carry some form of mortgage insurance, private or governmental. One of the prime sponsors of the legislation, Rep. Paul Ryan (R-Wis) argues that moderate income families, irrespective of race or ethnicity, will be the biggest beneficiaries of deductibility. "The people who use mortgage insurance are policemen, firemen, teachers and veterans," yet under current IRS rules "they cannot deduct the cost of their premium payments for federal tax purposes," he said. Mortgage insurance allows borrowers to take out a home loan with a minimal downpayment, frequently three to five percent. Private mortgage insurance is required by lenders on any loan where the downpayment is less than 20 percent. FHA mortgages are aimed at buyers who can afford even smaller downpayments and may have imperfect credit histories. Most mortgage insurance premiums are paid monthly as add-ons to the principal, interest, insurance and tax escrows. They range in size from under $50 a month to $200 or more, depending on the size of the loan and depth of the insurance coverage. Both the House and Senate bills "target" deductibility to middle and upper middle income families and deny it for high income homeowners. The bills contain a phase-out procedure limiting most tax write-offs to borrowers with household incomes below $100,000. Borrowers below that ceiling will be able to write off 100 percent of their monthly insurance premiums. Borrowers with incomes above $100,000 will lose 10 percent of their deduction for each $1,000 that their household income exceeds $100,000. ****Until this dream comes true feel free to contact Anthony Pipitone at 312-492-3239 for other alternatives to PMI**** Posted by at 04:47 PM
February 12, 2004Mortgage Interest Rates 2-12-2004Please contact Anthony Pipitone Mortgage Rates for February 12th, 2004 RLCA
3/1 ARM Conventional Jumbo 3/1 ARM Jumbo FHA 15 Year Fixed FHA 30 Year Fixed FHA
Ask about our:
Equal Housing Lender. Illinois Residential Mortgage Licensee.
Posted by at 01:38 PM
February 10, 2004FEATURED LISTINGSCALL RON FOR SHOWING!! OMD: LMT: 105 SP: $0 CONTRACT DATE: SO: FIN: 0
LISTING #: 04003242 STATUS: PEND CTGF: COMMERCIAL-MULTI-FAMILY 5+ UNITS DIRECTIONS: NORTH AVE, JUST WEST OF DAMEN AVE PROPERTY INFORMATION AND DESCRIPTION APPROXIMATE AGE: OLDER AIR CONDITIONING: INCOME & EXPENSES DATA MONTHLY AMOUNT ANNUAL AMOUNT ANNUAL OPERATING EXPENSES AMOUNT SOURCE EXPENSE YEAR: 3 LESS TOTAL ANNUAL EXPENSES: 34575 REMARKS: CHANCE OF A LIFETIME! ONE OF THE LAST BIG BUILDINGS LEFT BROKER COMPENSATION OFFICE: PROPERTY CONSULTANTS REALTY ID#: 11047 PHONE: 773-489-4444 CONTRACT DATE: 02/02/04 SALE OFFICE: FINANCING: 0 INFORMATION NOT GUARANTEED, REQUEST ADD'L INFO FROM BROKER, Posted by at 04:24 PM
NO MORE PMIDon't Pay PMI If You Don't Have To
Are there way's around PMI? The answer is YES! For all my clients who have less than 20% downpayment and qualify based on their credit and financial situation, I encourage them to take out 2 mortgages instead of paying needless PMI, which is NOT tax deductable. For example: A Loan With PMI For Example: A Loan Without PMI and With a 2nd Mortgage This is a difference of $165.76 per month as well as having all the interest on the 2nd mortgage as a tax deduction!!! Be good to yourself. Call Anthony Pipitone at 312-492-3239 for more details. Posted by at 12:40 PM
February 05, 2004Increase Your Credit Score5 Ways to Raise Your Credit Score Essence Sherrod, Lena
1 Pay all bills on time. Late payments are recorded on your credit report and can lower your score. If you've missed payments, catch up. The better your bill-paying habits, the higher your score. 2 Keep balances low. High outstanding debt on credit cards and other revolving credit can decrease your score. 3 Don't apply for credit too often. Every time you apply for credit an inquiry is placed in your file. Too many new credit applications can lower your score. 4 Don't close unused credit cards. This strategy will not raise your score. But don't open new credit-card accounts that you don't need to increase your available credit. This approach could actually lower your score. 5 Don't have too few credit accounts. If you have no loans or credit accounts, you are also considered a credit risk. A few credit cards in good standing, with reasonable limits and balances, can help improve your score.
Posted by at 02:49 PM
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Mortgage Interest RatesPlease contact Anthony Pipitone Mortgage Rates for February 5th, 2004 RLCA
3/1 ARM Conventional 30 Year Fixed FHA
3/1 ARM Jumbo -PMI is Private Mortgage Insurance and is usually required on loans with a down payment less than 20% Ask about our: 2350 E. Devon Ave. Suite 310 Des Plaines, IL 60018
Posted by at 02:08 PM
February 02, 2004A Flexible New Way To Buy A Home USA TODAY
So, in a world of skyrocketing home values and ultra-low interest rates, second mortgages have become first mortgages. But these loans aren't for everybody. You could be setting yourself up for a quick need to refinance to a more traditional mortgage if interest rates move up sharply. And using an equity line as your only home loan requires fiscal discipline, or your next move could be from dream house to poor house. What you need to know Traditional equity lines. Normally, you'd take out a home equity line of credit to supplement your primary mortgage. Because they are secured by your property, bankers are willing to extend the credit at a lower interest rate than most other kinds of loans. And interest paid on an equity line is tax deductible, just as interest on a first mortgage is. Your lender will open a credit line up to a specified limit determined by your home equity -- your home value minus what you owe on your first mortgage. The interest rate is subject to change monthly, as market interest rates change. Flexibility and convenience are key attractions. You typically draw on an equity line of credit by writing a check. Buy nothing, pay nothing. Run the balance when your expenses are high. Pay it down when you have a surplus of cash. The deals permit a borrower to draw against the credit line for a specified period of, say, five years and pay only interest. At the end of the draw period, the loan balance must be paid over the remaining term of the loan, say, 15 years. What's new. More lenders are marketing equity lines to customers looking to buy a home or refinance. Say you want to buy a $250,000 house, and you have $50,000 cash. You take an equity line for $235,000. Assuming you sink all your cash into the deal, you use $200,000 from your credit line to pay for the house. That leaves unused credit of $35,000. The selling points: * Initial interest rates. Equity lines are pegged to the prime rate, a benchmark interest rate uniform across the lending industry. The prime rate is now 4%. When the Federal Reserve Board changes short-term interest rates, banks move the prime rate with it. Three years ago when the Fed changed directions on monetary policy, the prime started to notch downward from 9.5%. It's been resting at its current low level for more than six months. Competition among lenders has driven down the price of equity lines. They're making them available at rates very close to prime, and sometimes even below. Lenders typically express the price of an equity line as a constant spread above or below the prime rate. Example: A loan pegged one-quarter percentage point below prime would result in an interest rate of 3.75%. If you want to snag a rate below prime, you'll need an excellent credit history, limit your credit line to 80% of your house value and pay closing costs out of pocket. * Transaction costs. The equity lines carry no points -- upfront payments that reduce the interest rate. They do carry closing costs. * Payments. In the first 10 years of the loan, the borrower may make interest-only monthly payments. On a $200,000 balance, a 4% equity line would cost $667 a month. Keep in mind that you won't be building equity with your payments. But many borrowers these days are comfortable with that if their home is appreciating in value and they have good alternatives for investing their money. A day of reckoning arrives eventually with this or any other interest-only home loan. Typically, a lender requires repayment of the loan principal starting in the 11th year of the loan. * Flexibility. As with any equity line, the borrower has the option each month to run up the loan balance or to pay it down to a more manageable level. The drawbacks: The ultra-low interest rate will look like a bargain only as long as the Fed keeps short-term borrowing rates low. A reversal of Fed policy may be months away, or maybe years away. Lenders acknowledge that a run-up in short-term rates could make these loans lose their luster. In the meantime, there's big money to be saved on low monthly house payments, they say. Anyway, if interest rates move sharply upward, homeowners in recent years have found that they're comfortable refinancing to a better deal the instant one presents itself. Veso Dimitrijevich, 30, a project manager at Ford Motor, traded his 7% fixed-rate mortgage for a 4% equity line as the sole means of financing for his Royal Oak, Mich., condominium. The prospect of a run-up in interest rates is not a worry, he says. He's carrying a balance of just $82,000, so even a spike in rates wouldn't blow a hole in the household budget. And he and his wife plan to move in a few years. And the open credit line? It's not a temptation, says Dimitrijevich. He paid an extra $200 a month on his old mortgage to buy down the principal. He says he plans to keep his monthly payment the same. Nonetheless, a home with an equity line has an easy-money quality to it that even some lenders acknowledge could lead to trouble. Many lenders question whether some of the potential borrowers targeted for this type of loan have the financial skills to manage unfettered access to their home equity. For further information contact Anthony Pipitone at RLCA. Posted by at 04:32 PM
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