So you think we have it tough…

April 3rd, 2010 categories: Buying your Home, Our Charlotte Realtors, Real Estate News

So you think we have it tough now, take a look at this. This was lifted off the front page of the Charlotte Observer on March 30, 1980. My wife Jackie Stutts and I bought our first house in closing months in 1980. Considering where the interest rates had been earlier in the year, we were more than thrilled when rates dropped below 12% and we got our first mortgage at the bargain basement rate of 11.75% for a 30 year fixed rate with a 10% down payment. We thought we had made the coup of the century and we felt good about what we had done. Rates would never be that low again.

Today’s interest rates are at the lowest level that they have been in years. If you are waiting for rates to drop another 0.125% before locking your loan, take a quick look back at 1980 for a reality check and think of just how lucky we are to have rates consistently below the 6.0% level.

Requirements to get approved for a home mortgage have tightened up some over the past year but these adjustments get us back to the 1980’s. The article talks about loans requiring 10% and 20% down payment. A down payment. What a novel idea. There is absolutely no mention in the Observer article of 100% financing. Can you believe it? Actually having a true investment in your home in order to buy it.

Yes requirements have tightened up some but with a good credit score, a little money for a down payment (only 3.5% for FHA loans but this is going up so HURRY) and a job in hand there is plenty of financing out there for a home mortgage for you.

Don’t get too bogged down focusing on waiting for rates to drop another 0.125%. If you are happy with your interest rate and comfortable with your monthly mortgage payment, you might want to consider locking in your rate while you can. You just never know (as this article shows us) when rates will move in the wrong direction for you.

By Terry Stutts-WR Starkey

Authored by Donna Johnston | Discussion: Your Comments Please »

Myers Park Mortgage a Friend of Talk Charlotte Real Estate!

August 8th, 2008 categories: Buying your Home

We are pretty good at helping you find the perfect home in Charlotte but that is only part of the story.

Once you decide on a home we rely on a team of experts to help us close the deal. Inspectors, attorneys and of course mortgage bankers. We are very lucky to have teamed up with Myers Park Mortgage to offer our clients one option for sound financing advice & products with a local feel. Getting the best mortgage interest rate is of course important but it is only part of a successful financing program ~ customer service & communication or (lack thereof) too often make or break the deal! That’s why choosing a solid lender like Myers Park Mortgage is so important!

We have invited one of Myers Park Mortgage’s best (and a really good guy!) bankers, Terry Stutts to write for us about some of the more interesting and misunderstood aspects of financing your new Charlotte home. Welcome Terry what do you have for us this week?

“Today I’d like to share with you some thoughts about an often vexing problem for homebuyers (especially first time buyers) Down Payment Assistance. Down Payment Assistance (DPA) for home mortgages, seems to be going the way that 100% financing has recently gone. Basically, GONE as in gone goodbye! President Bush last week signed a bill that forbids the FHA from insuring mortgages in which the down payment comes directly or indirectly from an interested third party (usually the seller). This bill takes effect October 1, 2008 (also effective 10/1 the minimum down payment for an FHA loan will increase from 3.0% to 3.5%.) DPA is a process that allows the seller to charge more for his home and return that money to the buyer to be used as a down payment. This allows the buyer to purchase a home effectively with little or no down payment.

Of course this is Washington so while this law takes effect, there is a new “counter bill” being introduced that if passed and signed into law will allow DPA to continue indefinitely. Another fine example of your tax dollars at work! This mortgage business is going through a lot of changes ~ at Myers Park Mortgage we feel it is our job to do the homework so our clients can make the best  and most educated decision. I am happy to answer any question you might have ~ please do not hesitate to call Terry at 704-887-9405 or by email”

Thanks Terry, we get a lot of questions about down payments so this will certainly help our clients ~ we look forward to your next guest post!

Authored by Mike Gibbons | Discussion: 1 Comment »