Darrell Walters

Homes are becoming more affordable than ever due to the decrease in home prices coupled with lower mortgage rates. In fact, in most housing markets the cost of home ownership versus renting is at or near its historical average.

In these markets, there are some neighborhoods that stand out. Business Week highlights these neighborhoods in its report, "Best Affordable Suburbs 2009."

Ironically, these neighborhoods are not the most affordable suburbs in the nation. Instead it is a list that includes suburbs where buying a home is a good value due to the economy, schools, and crime level.

Peachtree City, GA made the list due to its outdoor recreation with two lakes and 90 miles of golf cart trails. It also has a very low crime rate. For a complete 50 state listing, visit Business Week's website.

Source: Business Week
Best Affordable Suburbs 2009

In another sign that the housing market is beginning to recover, the costs of owning a home versus renting are returning to historical norms.

The decline in home prices and historically low mortgage rates have dropped the after-tax cost of home ownership to only 125% of the cost of renting. This is at an 18 year historical average.

Additionally, in more than 25 of the top housing markets, the ratio is below the 18 year average.

Renters now see the lower cost of ownership, low mortgage rates, and the $8000 first time home buyer tax credit and are more likely to become homeowners.

If you would like more information regarding mortgage rates or a referral for a Realtor, email dwalters@integritymtgonline.com or call 678.648.5626

Source: The Wall Street Journal
Renters Lose Edge on Homeowners
March 2, 2009

The latest edition of the Bankrate.com Mortgage Trend Index has been released with the experts saying that rates aren't going anywhere.

Here are the expert's 30-day prediction for mortgage rates:

· 20% predict mortgage rates will increase
· 20% predict mortgage rates will decrease
· 60% predict mortgage rates will remain unchanged

Mortgage market indicators show that rates should be going up, however the Fed and Treasury continue to push rates down. It has come down to a fight between politics and economics and for now it looks like the government has rates where they want them. Conforming mortgage rates continue to stay around the low 5 percentage range.

If you are purchasing a new home and the current rate is higher than what you prefer consider monitoring the market because rates will change quickly. Also if you are refinancing and your rate drops to less than 5 percent consider locking the rate. In today's market a rate less than 5 percentage points is a good deal.

For your free mortgage consultation and information regarding current mortgage rates contact me at dwalters@integritymtgonline.com or 678.648.5626.

Source: Bankrate.com

The president recently presented his plan, the Homeowner Affordability and Stability Plan, to improve the housing market.

The plan made the headlines on most every newspaper in the country.

Here are a few highlights:

• Provide incentives to mortgage servicers to reduce debt to income levels for at risk home owners before foreclosure
• Allow homeowners with little or no equity refinance to a lower rate provided that they have good credit
• Increase funding to Fannie Mae and Freddie Mac to lift the mortgage markets

Although there are several positive aspects of the plan we need to remember that it is simply a plan. It is the Congress, loan servicing companies, and federal housing agencies that implement and execute the plan. And as we've seen in the recent passing of the stimulus bill, just because the president wants something included in the bill, it isn't guaranteed.

There are issues with the plan to be worked out and according to the White House website, March 4, 2009 is the plan's implementation date. Until that time nothing is guaranteed.

Contact me anytime at dwalters@integritymtgonline.com or 678.648.5626 to determine you if qualify to refinance to today's low rates.

Image Source: Birmingham News

As demand for homes is expected to increase this Spring, Bankrate.com offers 9 tips for homebuyers.

Buyers have access to the lowest mortgage rates in years and an $8000 first time home buyer tax credit that does not have to be repaid if the homeowner lives in the home for at least three years. This should improved demand side for the housing market and with these nine tips, buyers should be moving in to their new home soon.

1. Cash is king. With down payment increases from FHA and Fannie Mae, cash has more buying power than before.
2. Negotiate everything. Home sellers will be offering more incentives to sell their home quickly. Consider asking for seller paid closing costs, property taxes, and home association fees.
3. Save for a down payment. Set up a budget and include savings. The ideal goal is for 20% down on your new home.
4. Determine how much home you can afford. Understand what you would like your monthly payment to be before finding out what amount you qualify for.
5. Improve your credit score. Check your credit report for reporting errors, pay your bills on time, and do not cancel or close any open accounts.
6. Research the local housing market. As you work with your local Realtor, search online to find out how long homes have been on the market and what they have sold for. The more you know, the better off you are in negotiating your purchase.
7. Watch for certain neighborhoods. A Realtor will be able to help you avoid traffic issues, zoning changes, and higher crime areas.
8. Consider foreclosed homes. With the number of foreclosed homes on the markets banks should be eager to sell.
9. Look ahead. If you don't qualify for a mortgage today continue to watch the market and keep up your savings.

For assistance on qualifying for your home purchase or for a Realtor referral contact me directly at dwalters@integritymtgonline.com or 678.648.5626.

Source: Bankrate.com
9 Tips for Homebuyers and Sellers in 2009
February 24, 2009