Like it or not, there are a couple of guidelines bankers, and mortgage lenders use to determine how much loan you can afford.

One guideline is the Payment to Income Ratio. This guideline compares your income- or your total household income-to the amount of mortgage your considering.

To calculate the “payment” part of the formula, the lender will take the mortgage payment (principal & interest) and add it to Propeety Taxes and Insurance. Hence the term “PITI” (principal, interest, taxes and insurance).

Usually lenders will loan up to 28% of your total household income.

But before your home free, there’s something else you need to know..

It’s called the Debt to Income Ratio. Debt refers to ALL, the major monthly payments other than your mortgage (PITI). To arrive at this amount, the lender will consider…

Your car payment
Your credit card debt & payments.
Any IRS liens or payments due.
Any other payments and debts you have (boat, second home, etc)

Then they’ll compare your total debt to your ability to make current payments with your new home loan added into the equation.

Now here’s the “catch”. Each mortgage company sets diffferent limits on your Debt to Income Ratio, which it is critically important to find the right lender!

Don’t follow the “canned” financial advice like you see on TV. Most of the advice is “rule of thumb”, and designed for the lowest credit rating and the highest rates.

Think about this….

If you spend two or three days to find a loan that saves you $40,000 to $150,000 or more overs it’s term, your time is WELL WORTH SPENT! Doing a little homework on your own will literally save you thousands over the term of your loan.

If your in the market for a new or re-sale home in the Triangle area of North Carolina call us today at Jeff Dicks Real Estate – 919-793-4730

We look forward to putting our award-winning team to work for you

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MCLEAN, Va., May 5, 2011 /PRNewswire/ — Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS^®), which shows mortgage rates drifting lower with the 30-year fixed-rate mortgage matching the yearly low of 4.71 percent, and the 15-year fixed hitting a new yearly low of 3.89 percent.

News Facts

• 30-year fixed-rate mortgage (FRM) averaged 4.71 percent with an average 0.7 point for the week ending May 5, 2011, down from last week when it averaged 4.78 percent. Last year at this time, the 30-year FRM averaged 5.00 percent.

• 15-year FRM this week averaged 3.89 percent with an average 0.7 point, down from last week when it averaged 3.97 percent. A year ago at this time, the 15-year FRM averaged 4.36 percent.

• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.47 percent this week, with an average 0.6 point, down from last week when it averaged 3.51 percent. A year ago, the 5-year ARM averaged 3.97 percent.

• 1-year Treasury-indexed ARM averaged 3.14 percent this week with an average 0.5 point, down from last week when it averaged 3.15 percent. At this time last year, the 1-year ARM averaged 4.07 percent.

Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage. Visit the following links for Regional and National Mortgage Rate Details and Definitions.

Quotes

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

• “Weaker economic data reports reduced Treasury bond yields and allowed mortgage rates to drift lower for the third consecutive week. For instance, real economic growth in the first quarter fell short of the market consensus forecast and represented the slowest pace since the second quarter of 2010. In addition, both the manufacturing and service sectors exhibited growth at a slower rate in April.

• “Data reports on the housing market, on the other hand, were a little more uplifting. The National Association of Realtors^® reported pending home sales rose in March for the second month in a row to the highest index reading since November 2010. Also, the Federal Reserve reported credit standards among commercial banks for prime mortgages were unchanged on net in the second quarter of the year, following two quarters of tightening.”

Get the latest information from Freddie Mac’s Office of the Chief Economist onTwitter: @FreddieMac

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

SOURCE Freddie Mac

Related articles

• HELP FOR HOMEOWNERS – HARP extended thru 2012(theraleighmortgageguy.com)
• Home Sales Drop %15.1 in Raleigh North Carolina(theraleighmortgageguy.com)

 

You are looking at a one-of-a-kind home. This house sits on a sprawling scenic hilltop in North Raleigh, NC . A series of nested spaces all connected by unique rooms and views. This private retreat is surrounded by the beauty of large oaks, Japanese Maple, and azaleas.

The neighborhood is surrounded  by acres of land teaming with wildlife like deer, squirrels and songbirds. The beackyard is smaller with a large deck, and represents a wonderful opportunity for the new homeowner to put their personal touches to. This home although built in the early 1990’s has been updated with all the modern trends.

 6208 Trevor Court Raleigh NC 27613

Raleigh, North Carolina real estate runs the gamut from trendy new condominiums to sprawling homes in golf communities. Diversity is one of the city’s defining characteristics, something that can be evinced in everything from its range of real estate options to its wealth of attractions.

The capital of North Carolina and seat of Wake County, Raleigh is second only to Charlotte in population size and is the 15th fastest growing city in the country. It sprawls over an area totaling 115.6 square miles and, as of mid-2008, has a population of 380,173 people.

Raleigh, North Carolina real estate is spread out over the city’s different neighborhoods. If you’re looking for an urban lifestyle with a strong strain of historic charm, head downtown. Downtown, also known as Old Raleigh, is where you’ll find condos as well as rows of historic homes and buildings.

In search of new developments? Head north to the Northern Raleigh area, which has experienced a bit of a building boom in recent years. Both new and established neighborhoods in North Raleigh are generally composed of spacious single-family homes on wooded lots, townhomes and estate-like residences, with newer developments offering a greater mix of all types. Some of the most desirable neighborhoods in the area include North Ridge, Bent Tree, Falls Village and Stonebridge. Just north of Raleigh in Wake Forest there is the award winning community of Heritage. Heritage Wake Forest began construction in early 2000. It continues to grow along with fabulous new amenities and close to 100 new homes have been sold in the 1st quarter of 2011. You owe it to yourself to see this community and it’s offerings.

As a whole, the Triangle has been experiencing stable, steady growth in the past two or so decades. Building permits issued for single-family new home construction surged by at least 25 percent from 1996 to 2007. By avoiding the skyrocketing kind of growth that other markets across the country underwent, Raleigh has also managed to sidestep the bursting of the housing bubble.

Whether you want a home in a more urban setting or a place of residence where you can wake up everyday to the music of the outdoors, Raleigh and its surrounding areas will have something for you.

No one knows Raleigh, North Carolina real estate better than Jeff Dicks of Keller Williams Realty. Should you wish to have more in-depth information on Raleigh home sales, Raleigh investment properties and real estate in other areas in the region, please feel free to give him a call.

In our previous commentary we talked about what’s happening in the Real Estate Market. Not to be forgotten is all real estate markets are local. What’s happening in the Cleveland market isn’t the same as our’s the Raleigh area.

Now not to be discouraged, there is a solution to the madness; and believe it or not, there is a pricing strategy that works almost every time to get homes sold fast at a great price… and that is to price your home low and the the demand the low price creates raise the final selling price.

If you’re observant, you” notice that foreclosures are getting a lot of buyer activity..now why is that?

It’s simply because buyers view them as a deal; and as one person put, if they think they buy one, they’ll pay a wholesale price rather than a retail price..even if such is not the case.

Price your home like the banks do( 5-10 percent below everyone else) and get the demand o drive the your price up.  If you don’t, you’ll be taking your chances with everyone else and will most likely sell your home for 5-10% below market value anyway, because almost every buyer is low-balling prices.

 

The media today overwhelms us with some much data. Where is one to turn? What you don’t know about the housing market WILL hurt you…not the other way around.. It’s true; these trends may affect you differently, depending upon your situation. For example, if you have equity in your home, you’ll need to know what’s happening so you don’t lose it; but if you owe more money for your home than it’s worth or you’re facing foreclosure, you’ll need to understand these trends so you can avoid having the banks control your destiny.

So with that being said, let’s dig into whats going on in the housing market and learn how to avoid the dangerous trends that could keep your home from being sold. Everyone knows the housing market is in rough shape right? You know it, I know it, your neighbor knows it, and practically everybody else knows it, too.

Rather than ignoring what’s going on, lets study it and see how we can overcome some of the challenges it present. Don’t you agree, it’s better to take the proactive approach rather than be someone who sits around, ignores it and blames the economy for their home not selling?

Look for our second installment soon

The Triangle Society announced today it’s members will have privileges at The Club at 12 Oaks.

A private Nicklaus design golf course located in the prestigious 12 Oaks development in the heart of the beautiful town of Holly Springs, NC. The 7,132 layout of this magnificent golf course was designed to take advantage of its rich natural beauty highlighted with gently rolling terrain, plush greens and state of the art practice facility unmatched by any other in the area. The Southern style clubhouse was designed to provide sports and social activities for all members of the family.

For more information visit The Triangle Society During the month of February 12 Oaks will be offering Golf Specials

Courtesy of Jeff Dicks Real Estate

Here is your Free Report

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For Further information please contact
Jeff
919-793-4730

The “Colonial House”- a gem in a toney neighborhood that is only $ 199,000

Romantic house has 2,256 sqaure feet with 3 bedrooms, and two balconies. Close to Youngsville, and a backyard taht looks like something out of a nature magazine.

The residence is on a secluded street just west of town. Home here vary in style and composition. The home sits on over an acre lot in this sleepy neighborhood. The Colonial design has a retospective “feel” with tall columns, and two large covered balconies. The yard is lush with trees and looks like a home from a travel magazine when in bloom.

The sellers are represented by Jeff Dicks Real Estate and Keller Williams Realty . See full details of the “Colonial House” (floorplan, map, and photo’s)
at www.JeffDicks.com

Recent data released showed that JP Morgan, Wells Fargo , and Bank of America had a combined market exposure of over $20 billion in various stages of foreclosure.

The lenders are simply in over capacity and are managing best they can since “foreclosuregate” hit the presses. How these companies will manage their assets will continue to be on the forefront as the rating agencies will continue to scrutinize these companies debts and balance sheets.

New loan applications continue to crawl and are adjusting due to seasonal demand in the housing markets. The good news for those whom are able to buy a new home are in good position to take advantage of the lower rates and lower housing prices.

The Triangle market of North Carolina has slowed and we continue to see some price reduction sellers. Some sellers still refuse to lower their price and will likely continue to see longer days on market or not sell at all. In the end we there are many opportunities for both buyers and sellers to navigate the current housing market.

Courtesy of Jeff Dicks Real Estate