LowryTeam.com Mortgage Interest Rate Update

Have mortgage interest rates hit their lows?  Will they continue to move higher lower?  These are good questions. The truth of the matter is nobody knows for sure.  We had seen an uptick in mortgage interest rates in West Chester & Mason Ohio earlier this year, only to see them sag back down again, as you can see on the graph. The interest rates are now hovering around in a range between 4.00% – 4.25% for a 30 year fixed rate mortage.

It seems like in West Chester and Mason Ohio that we have seen the lowest levels and that interest rates may likely begin to edge a little higher as we get into the new year a little ways.  We certainly don’t expect large jumps in interest rates soon, but an upward trend seems likely.  The only certainty that exists right now is that these are historically low rates for home purchases.

Get preapproved for your mortgage before you begin to search for homes. You can get preapproved for a mortgage to buy a home in West Chester, Liberty Township & Mason Ohio right here>> Get Prepproved for a Home Loan

You can start your search for a new home in West Chester, Beckett Ridge or Liberty Township, Ohio right here using our real estate search engine – VIPHomeFinder.com.

Are you planning to buy a home in West Chester, Liberty Township, Beckett Ridge or Mason Ohio in the near future?  If so, then you will likely need to get a mortgage.  There are a number of options available in the home mortgage market today and some of these options may be better for you than others.  The following is a brief summary of many of the options for home loans in the West Chester, Liberty Twp,. Mason and Cincinnati Ohio areas:

30 Year Fixed Rate Mortgage:  This one is the “old stand by”.  The rate is currently very low (approx. 4.25%) right now, although it is higher than some of the other options.  The best part of this mortgage loan is that the interest rate doesn’t change for the life of the loan.

15 Year Fixed Rate Mortgage:  Same basic premise as the 30 year fixed rate mortgage loan except the payback is calculated on 15 years so the interest rate is lower (around 3.50% today).  This mortgage loan is great for building equity quickly, but does come with a higher monthly payment.

>>>Get Preapproved For A Mortgage Here<<<

Adjustable Rate Mortages:  These mortgage loans are mostly based on a 30 year re-payment schedule, but the interest rate may be fixed for just the first 3 or 5 years of the loan and then adjust from there based on market conditions.  These mortgage loans will get you the lowest possible rates (2.45% – 2.65% today) and will work especially well if you only plan to be in your home for 3-5 years.

FHA Loans:  An FHA mortgage loan  is a loan that is made by a bank or mortgage lender that is insured by the Federal Housing Authority (FHA) .  This insurance of the loan provides for lower down payments, lower closing costs as well as less restrictive qualification criteria.  FHA home loans are very commonly used by first time homebuyers.   In the last couple of years many other homebuyers have also turned to the FHA home mortgage loan as a very good option.

Special note:  The FHA Loan Limits were recently increased back up to the previous levels prior to the FHA changes made on October 1st, 2011.  Congress raised the FHA loan limits in a bill passed on November 17, 2011.  The current FHA Loan Limit in Butler County Ohio is $337,500.

VA Loans:  A VA Loan is a loan  that is made by a bank or mortgage lender that is insured by the U.S. Department of Veterans Affairs (VA).  This insurance of the loan by the VA provides for loans with no down payments, provided the homebuyer is eligible for the VA Loan program.

Other articles that my interest you:

FHA Mortgage Loan Limits Changing – Does It Matter?

Planning To Buy A Home Next Year?

Do  you have questions about the homebuying or home loan process?  Use the form below to contact us and we will get back to you as quickly as we can.

If you are planning to buy a home next year it’s time to get started.  Interest rates are at historically low levels and home prices are right down there with them.  This makes for an opportune time to buy a home, whether you are a first time homebuyer or are a “move up” homebuyer.

Some potential home buyers remain concerned about home prices falling further.  It is always possible that they could go a little lower, however there is no way to know where the exact bottom is until we have passed it and home prices are on there way back up.  Historically speaking home prices do go up and they do go down, it’s just cyclical.

Missing out on the lowest interest rates is more of a concern than fluctuating home prices.  Buying a $150,000 home with an FHA mortgage (3.5% down payment) at 4.00% interest rate gives you a monthly payment of $691.  Buying that same home after rates have increased by just .5% increases that monthly payment to $734.  The difference in the monthly payment amount is as if you had bought a $160,000 home with the 4.00% interest rate.

So, if you are going to buy a home next year the following steps should be taken starting now:

#1.  Get PreApproved For A Mortgage

Why now you ask?  Getting preapproved for your mortgage financing right now gives you the time to get all of your personal finances in order.  Your mortgage lender can help you with any credit report errors that might need to be corrected.  You will also have a very solid idea of your purchase price range so that you can take the next step and begin to look at homes for sale online.  Get PreApproved For A Mortgage Here.

#2.  Start Looking At Homes For Sale Online Right Now

Starting to look at homes listed for sale right now online will give you a great opportunity to check out different styles of homes and in general will give you  an idea of how much home you will be getting for your money.  You can search for both condos for sale and single family homes for sale and decide which one seems the best fit for you.

#3.  Select Your Area or Areas That You May Want To Search For Your New Home In

By looking at homes for sale online you can select some favorite homes and then you can set out to see if  you like the areas they are in.  Are the neighborhoods these homes are in a good fit for you?  Drive through them and different times of the day and on weekends.  Are you looking for an area or neighborhood with alot of children?  Drive the neighborhood looking for playsets in backyards and drive through these same neighborhoods at school bus times, that will show you how many kids there are.  Get details on the communities and schools that you are interested in.  You can access our Community And School Information totally free on our website.

#4.  Call A Realtor

Yes, it is now time to get to it.  It’s time to actually hire a Realtor to represent you as a buyer’s agent in the purchase of your home.  Select your agent carefully.  Selecting the right real estate agent can make the home buying process fun and hassle free.  Your agent should be experienced in the areas and price ranges that you are looking in.  You also need to be a good fit personally with your real estate agent, you are likely going to be spending a good deal of time with them for a while.

You are now on your way to buying your new home at today’s low interest rates and at these very low home prices.  If we can be of assistance to you in your home search please feel free to contact us using the form below or call us at 513-874-1830

LowryTeam.com Mortgage Interest Rate Update

Have mortgage interest rates hit their lows?  Will they continue to move higher lower?  These are good questions. The truth of the matter is nobody knows for sure.  We had seen an uptick in mortgage interest rates in West Chester & Mason Ohio earlier this year, only to see them sag back down again, as you can see on the graph. The interest rates are now hovering around in a range between 4.00% – 4.25% for a 30 year fixed rate mortage.

It has seemed like in West Chester and Mason Ohio that we had seen the lowest levels and that interest rates would likely continue to edge a little higher and then the economy shows continued weekness overall and the rates sag back down again.  The only certainty that exists right now is that these are historically low rates for home purchases.

Get preapproved for your mortgage before you begin to search for homes. You can get preapproved for a mortgage to buy a home in West Chester, Liberty Township & Mason Ohio right here>> Get Prepproved for a Home Loan

You can start your search for a new home in West Chester, Beckett Ridge or Liberty Township, Ohio right here using our real estate search engine – VIPHomeFinder.com.

How to Buy a House Before Your Other House Sells

In the buyer’s market that we are currently experiencing, the inventory of homes for sale can be astounding. Deciding on a home to buy is difficult enough, but what happens when you have one to sell beforehand? Many times, especially in a soft real estate market, a buyer may get into a situation where they find a new house before their current house sells. Acting as a buyer and a seller in separate transactions can be tricky business, especially if you need the equity from your current home to pay for the new home. Luckily there are some best practices that can help show you how to buy a house In West Chester or Mason OH before your other house sells.

>>Search West Chester & Mason OH Real Estate Here<<

 Consider a Bridge or Home Equity Loan. There are many financing options available when it comes to home buying, and bridge loans can be an easy way to finance a new home sale before your existing home closes. A bridge loan is one that is used to provide funds needed for a short period until another source of funds becomes available. Sometimes called a “swing” loan, it allows a homebuyer who needs the equity in his old home to pay for the new one to close on the new home purchase before closing on the old home sale. The interest rates on these loans are typically high. However, because the loan will be paid off in a short period of time, this should not be a huge problem for buyers. In a similar vein, you might consider a home equity loan on the house you already own. This is a bit riskier, but provides the same benefits.

>>Get Preapproved For A Mortgage And Take Advantage Of Today’s Terrific Interest Rates<<

Rent your current home. If you can find short-term or month-to-month tenants who are willing to rent your current home until it sells, you can avoid having to worry about the house sitting vacant while you are moving into the new home. This can help you avoid having to winterize or de-winterize the property and stage the home for showings. You will also be able to apply the rental income to your existing mortgage on the house, to alleviate the financial burden of paying two mortgages.  If you pursue this strategy be careful that you don’t end up with a renter that will make showing and selling your home more difficult.

Work with the Seller. In a soft market where buyers are limited, sellers are often willing to work with the buyer on a purchase agreement that works for both parties. If you’ve already found the house you want to buy, but haven’t yet sold your existing home, it may be possible that the seller will allow you to make a down payment with a signed contract that permits you to extend the actual closing of your new home by a couple of months until your old house sells.

Should I Buy a New House Before I Sell the Old One?

Buying a new house In West Chester or Mason Ohio before your current house sells is not an ideal situation, but there ways to get through it that can alleviate the risk and financial burden. If you’ve considered the options above and are still unable to find a solution that works, an alternative and less attractive choice may be to hold off on buying a new home until your existing home is the final stages of closing. As disappointing as this can be for sellers who are anxious to move, it is a more desirable situation than being stuck with two mortgages and no remaining credit for other daily or emergency needs.

Your real estate questions are always welcome.  Please fill out the form below and we will get back to you as soon as possible.

LowryTeam.com Mortgage Interest Rate Update

Have mortgage interest rates hit their lows? Will they continue to move higher? These are good questions. The truth of the matter is nobody knows for sure. Mortgage interest rates have moved higher in the last 6-7 months only to see them sag back down again, as you can see on the graph.  The rates continue to bounce around in a range between 4.50% – 5.00%.

Click The Image To See A Larger Version

It does feel like we have seen the lowest levels and that interest rates will likely continue to edge a little higher as we move through the late summer and fall real estate markets.  Get preapproved for your mortgage before you begin to search for homes.  You can get preapproved for a mortgage to buy a home in West Chester, Liberty Township & Mason Ohio right here>> Get Prepproved for a Home Loan

You can start your search for a new home in West Chester, Beckett Ridge or Liberty Township, Ohio right here using our real estate search engine – VIPHomeFinder.com.

FHA loan limits may be changing this fall in Butler & Warren Counties, including places like West Chester, Liberty Township & Mason Ohio.  The question is, does it really matter to the housing market?  On the face of it, it would seem to be a big deal.  Having the FHA mortgage loan limit changing from a current level of $337,500 to a smaller loan limit of $271,050 in Butler & Warren County is a big change, actually almost a 20% drop in the loan limit.  So that is big.

But,  as I said before, does it really matter?  A look inside the housing numbers for areas in Butler County like West Chester, Liberty Township and Mason OH indicates it may not be that big of a deal.  So far in 2011, there have been 50 closed sales in the $280,000 – $350,000 price range (the range that would be eliminated by the loan limit reduction) in West Chester & Liberty Township.  Of those 50 closed sales, 8 of the buyers used FHA financing which is 16%  of the sales.  In Mason, there were also 50 closed sales in that range in 2011 and just 6 of those buyers used FHA financing which is of course 12% of the sales.  (Disclaimer: the sales data referenced here came from the Greater Cincinnati Multiple Listing Service).

So, will the housing market be negatively impacted by the change that is set to occur.  The housing sale numbers in West Chester, Liberty Township & Mason would seem to indicate that they would not be.  The fact is some of the homebuyers that did use FHA financing in this price range, may have done so because they could use this lower down payment mortgage program (3.5% down payment) not because they needed to.  It is very likely that at least some of these homebuyers could have made a larger downpayment if they would have needed to.

Why is this change in the FHA loan limits set to take place at the end of September?  To get the federal government out of the mortgage business is the answer.  They want the mortgage market to move back towards private investors buying mortgages and reduce the overly large percentage that are now being bought by the federal government.  The long term impact of this policy change may very well be higher interest rates, but then, those are inevitable anyway!

This isn’t to say that other areas of Ohio and our country may be more directly impacted by this change, but the impact in West Chester, Liberty Township and Mason, Ohio should be very small.

You comments and questions are always welcome!

Is it time for you to buy a home?  Start your search for a new home in West Chester, Liberty Township or Mason Ohio Here!

I was talking to my friend Dan Engen from the Cincinnati based Prominent Title Agency yesterday. We were discussing that many consumers are confused over what a title company does for them.  As a result of that discussion he has outlined the role his company plays in the real estate transaction for the greater Cincinnati consumer.

Welcome to guest blogger:  Dan Engen

What do we do?
Once a title has been requested, we order a search with an examiner. The examiner sends us a report that identifies mortgages, encumbrances, liens, or any other public information on the property. We take the report and create a title commitment stating all of the steps that must be done in order to close the loan (payoff liens, identify encumbrances; payoff mortgages; etc).  The commitment must be clear in order for us and the lender to allow the closing. From there, we work with lenders; schedule the closing with all parties; and prepare a HUD-1 or Settlement Statement from information the lender provides in a closing package. We must follow the lender’s instructions exactly or they could refuse to fund the loan.  After closing the loan, we then take all of the recordable documents to the courthouse and record them. Then we ship the package back to the lender for their review. Once the documents return from the courthouse we then issue a title policy to the lender.

What is Owners Title Insurance?
Title insurance is protection against loss if a covered defect is found in the title of the property. When you purchase a home, you are given a title to the property, which generally means you receive full legal ownership BUT sometimes there is a hidden mistake in a prior deed, will, mortgage, etc., that may give someone else a legal claim against your property.

Why is title insurance important?
Because it provides a safety fence around your property. Having title insurance can save you money, time, trouble and even your home.

What risks are covered?
1. Errors – Incorrect information in deeds, mortgages, public records, etc, such as wrong names.
2. Liens – Claims against the property or the seller that become the new owner’s responsibility after the sale. Examples are unpaid mortgages, taxes, sewer and water assessments, bills owed to workers or other creditors, etc.
3. Claims to Ownership – for instance, a claim to ‘marital interest’ by the spouse of a former owner or by a child of a former owner who was not mentioned in his or her parents’ wills.
4. Invalid Deeds – for example, transfer by a previous seller who did not actually own the property, or by a previous owner who was not mentally competent.

Many of these problems might not be discovered in a routine title search.

For more information on title insurance, call Dan Engen at Prominent Title Agency.  You can reach Dan at 513-779-7714

Searching for homes for sale? Search all of the homes for sale in West Chester, Beckett Ridge, Liberty Township, Mason or Monroe Ohio… Search The MLS

Relocating to Cincinnati? Request our free Relocation Package for information on West Chester, Beckett Ridge, Liberty Township, Mason or Monroe Ohio… Get The Lowry Team Relocation Package!

Check Out My Feature Homes For Sale In West Chester, Fairfield and Liberty Township, Ohio

What is Tuesday Open House?? Well, it’s clearly not an “open house”. Open Houses don’t sell homes… good internet marketing does… but it seemed like a good title for this weekly blog post.

It is my way of throwing the doors open on the RealEstate-Ink.com blog and offering up a few quick articles and facts on real estate for the West Chester, Liberty Township, Beckett Ridge, Mason and Fairfield Township, Ohio areas. It is not intended to be all about homes for sale, but it will be about that some of the time…

Mortgage Interest Rates:  The tax credits are gone and if you are looking for a reason to buy a home, look no further.  Thirty year fixed rate mortgages are 4.85% today.  The difference that this rate can make in your monthly payment is amazing.  Just look at this example of what these low rates really mean:

$200,000 mortgage amount @ 5.50%  =  $1135.58 monthly principal & interest payment

$200,000 mortgage amount @ 4.85%  =  $1055.38 monthly principal & interest payment

This example shows a monthly savings of $80 on your mortgage payment and this is compared to a mortgage interest rate of 5.50% which is a historically low rate itself!

Need Mulch? If you are preparing your home to get it on the market for sale soon,  don’t forget the curb appeal. As the old saying goes… you only get one chance to make a good first impression. So clean up the landscaping and get yourself some fresh mulch. I’m not sure that there is a better way to go than to get it from the boy scouts. They even deliver! You can just go directly to the boy scouts site right here. My mulch is being delivered in just a couple of weeks…anyone like to help??

Has the real estate market stablized? Get your personal real estate market update and monitor home values in your neighborhood.  You’ll see homes for sale in your neighborhood right now, you’ll see detailed information on homes that have sold and best of all this personal market update will be delivered completely free and directly into your inbox with no obligation.  Get your real estate market update right now at www.HomeValuesInCincy.com

Our facebook fan page of the week is: The Cincinnati Reds  It is opening day in Cincinnati this week after all!  You can find information on the Reds, information on events and giveaways and great player information.  As of this writing their page has 314,242 fans, so I ask that you check out their fan page, become a fan and invite your facebook friends to do the same.

While you are on facebook checking out the Cincinnati Reds fan page, please visit and become a fan of our facebook page: www.Facebook.com/LowryTeamRealEstate

What is my home worth? Want to get a good idea of what your home is worth… Get your own Personal Real Estate Market Update

Searching for homes for sale?  Search all of the homes for sale in West Chester, Beckett Ridge, Liberty Township, Mason or Monroe Ohio… Search The MLS

Relocating to Cincinnati? Request our free Relocation Package for information on West Chester, Beckett Ridge, Liberty Township, Mason or Monroe Ohio… Get The Lowry Team Relocation Package!

Check Out My Feature Homes For Sale In West Chester, Fairfield and Liberty Township, Ohio

Big Changes Coming to FHA Loans Effective April 4th! by Dave Scully, Guest Blogger on RealEstate-Ink.com

All FHA 30 year loans that are assigned case numbers on or after April 11, 2011 will have an increase in the Monthly Mortage Insurance Premium (MIP) from .90bps to 1.15bps for loans with less than 5% down.  For FHA 30 Year loans with greater than 5% down the Monthly Mortage Insurance Premium will increase from .95 to 1.10BPS.  (BPS=Basis Points) What is a basis point?

On a loan sales price of $163,000 this will increase the Monthly Mortage Insurance Premium by $33.  The net effect will be as if the rate is .375%-to a .50% higher in payment.

As if this wasn’t enough, effective on all FHA loans assigned case numbers after April 18th, 2001 the Up Front Mortage Insurance Premium (MIP) on ALL FHA loans will increase from 1% to 1.25%.  This amount is always financed.

The best way to avoid the higher Mortage Insurance Premium rates is to get out there and buy your home now!  Rates are still at near historical all time lows!  There are many great deals on homes out there! 

SEARCH WEST CHESTER & LIBERTY TOWNSHIP OHIO HOMES FOR SALE HERE!

Go out and take advantage of all 3:  (1) LOW RATES, (2) LOW HOUSING PRICES, (3) LOWER MORTGAGE INSURANCE PREMIUMS!

Get Your Mortgage Preapproval From Dave Scully Right Here! 

Contact Dave Scully