Real Estate Toronto Canada

Every profession has its good and bad eggs #8211; people calling themselves a professional when the term doesn#8217;t really apply. In Canada, the home inspection industry is largely unregulated. In a real estate transaction, everyone involved is licensed and government regulated, from banks and insurance agencies to real estate brokers #8211; but not the home [...]img alt=”" border=”0″ src=”http://stats.wordpress.com/b.gif?host=muddyyork.comblog=5188131post=2021subd=centraltorontorealestateref=feed=1″ /img src=”http://feeds.feedburner.com/~r/MuddyYorkARealEstateBlog/~4/ls3u7Wm7Tuc” height=”1″ width=”1″/

It’s the end of the year, so it is appropriate to look back at where we were and what has happen over the course of the year. The newspapers and magazines are filled with these reflections – the top 10 lists of music, movies and such. Another end of year tradition is to name a man, or person, of the year. This has been a long, strange year in the mortgage and real estate market so I’m going to combine the list of what factors drove the market this year with my nomination for the man of the year in the mortgage and real estate market:

Thank you, Uncle Sam

There’s no doubt in my mind that Uncle Sam was the man of the year. The real estate  and mortgage market, as well as the economy in general, have all been been driven by government involvement this year to an unprecedented degree. Look back to the beginning of this year and the mood was dark and fearful and the economy was still in freefall Unemployment is still high and foreclosures continue to be a huge problem. But the mood now is at least cautiously optimistic. Without the government stepping in, in countless ways, real estate sales would be much lower, and mortgages, if you could even get one, would be a whole lot more expensive. The real estate market collapsed due to poor loans and easy credit when the economy was booming, and with free enterprise out of the picture, the Feds were the only ones left with any money to spend. The jury is still out as to whether this approach will work in the long run, or even if it was the right approach, but for this year at least, Uncle Sam saved the market. But the government involvement went much deeper than that. The whole fabric of the real estate and mortgage industry is now shaped by the decisions the Federal Government has made over the last year.

Here are some ways that the Government changed the playing field:

Fannie Mae and Freddie Mac are still standing – Fannie and Freddie determine (mostly) what happens in the real estate market. Fannie and Freddie (mostly) set the guidelines for both borrower and  and property qualification, These big GSEs (Government Sponsored Enterprises) were completely taken over by the government a little over a year ago. So it is now Uncle Sam who is making all the rules and determining who can buy and what can be sold. Without Uncle’s backing, these enterprises would be bust, and the housing market dead. But even as the government opens the spigot and increases the backing to the GSEs, they are still tightening the guidelines. The problem is that they are working with two competing missions. As lenders, they need to worry about defaults and bad loans which hurt their bottom. As the government (the big picture) they need to get the economy going again and we can’t truly stabilize the economy until the housing market is under control. Fannie and Freddie are still doing loans, but they are only taking the best loans. Anything that doesn’t fit into the box gets pushed over to FHA.

FHA increases market share – Over the last 2 years FHA went from a small sliver of the mortgage lending market to about 40% of the mortgages originated. FHA has grown because it is doing all the things that Fannie and Freddie won’t do anymore (low down payments, less than perfect credit, easier condo approvals). If FHA hadn’t stepped up and increased their lending, a good portion of the first time home buyers, the most active segment of the market, would still be renting. FHA’s mission has always been to make affordable mortgages so more low and moderate income home buyers could make the step into home ownership. Now that they have raised their loan limits (up to $410,000 for single family homes in the Chicago area) FHA is the first choice for many buyers who would traditionally buy with a conventional mortgage. But FHA is having the same problems as Fannie and Freddie. As long as the economy is soft and unemployment is high, loan defaults will be a problem. FHA is now under pressure to tighten their guidelines and shore up the bottom line.

FED goes to extraordinary measures to keep rates low – Toward the end of last year mortgage rates were in the 6% range. Mortgage rates this year hit their all time lows and have spent the entire year between the high 4s and the low 5s. So, why were rates so low? Uncle Sam again. The federal Reserve Board (the Fed) went on a huge spending spree to bring more liquidity to the market, and one of their big spending programs was a program to buy mortgage backed securities. Mortgage backed securities are bundles of mortgages, and they in large part determine what consumers will pay for mortgage interest rates. The Fed committed 1.25 trillion dollars to this program, and they have now spent about a trillion. The program runs through the first quarter of this year. There is no doubt that the Fed’s action kept rates much lower than they would have been otherwise, and any home owner who refinanced into a lower rate this year, or who bought a home with a phenomenal interest rate, should say thanks to Uncle Sam.

First time home buyer tax credit – As part of the stimulus bill at the beginning of the year, when the economy was at its darkest, the government reformulated the first time home buyers credit. With an $8,000 incentive for buying a new home, first time home buyers were the big force in the housing market. This didn’t lead to many move up buyers, as the first time home buyers concentrated on foreclosures and short sales. The home buyers tax credit has now been extended for contracts put together by April 30th (you have up to the end of June to close) and move up buyers are now eligible, too. Once this runs its course we’ll see if this was a real boost to the market or just a way to get buyers who would have bought anyways to commit sooner, but again, this made a big difference this year.

More regulations and restrictions – The pendulum theory is in play here. When things go to far in one direction you can bet that they will swing too far back in the other direction. A few years back there was almost no regulations on the mortgage industry – we weren’t even required to be licensed until a few years back. This obviously led to abuses, and with the mortgage market at the center of the economic melt down, more regulation was needed. But much of the regulations that came out were aimed against products that were no longer available. Most of the abusive loan officers and companies have already failed or left the business, so some of this is a matter of closing the door after the horses have already escaped. Other regulations, like the HVCC appraisal guidelines, actually made it more expensive for consumers to get a mortgage. Getting a mortgage is usually the biggest financial transaction most of us will ever make, so we do need strong consumer protections in place. There is a lot more regulation and new changes coming in the mortgage industry, my hope is that they get the mix right so that it actually helps the consumer.

Made the big banks bigger – The banks that were too big to fail are now much bigger. When Uncle came in with their TARP funds and rescued the big banks, the law of unintended consequences went into effect. The big banks were a big part of our economic collapse. The big banks were the ones who loosened their loan standards and came up with all the toxic loan products (no income, no assets required) which expanded the housing bubble. Now, with government backing, these banks have increased their market share. Four banks, Chase, Bank of America, Wells Fargo and Citigroup, now make up over 50% of all the loans originated. They are still only lending for loans which they can sell back to the government (Fannie, Freddie and FHA) and their margins are higher than ever. This situation is bad for competition and bad for the consumer, but I don’t expect this to change any time soon.

This is just the tip of the iceberg in the government intervention. Uncle Sam was also pushing hard to stop foreclosures (without much success) by getting homeowners to modify their mortgages, and propping up the economy in a multitude of ways. The economy is still fragile, and it is much harder to get a mortgage now than it used to be. But there is no doubt that without government intervention the situation would be much more grim. That’s why Uncle Sam is my man of the year.

Stay tuned in the next few days for my predictions of what i see happening in the mortgage and real estate market over the next year.

Peter Thompson 630-479-6424                   Chicago FHA mortgage

Chicago Illinois Mortgage Rates                   First time home buyer loans

Chicago Area Mortgage Company

While you’re getting ready for New Years, take a moment and read our latest FYI December client newsletters by clicking on the links below.

Condo Owner December Newsletter

House Owner December Newsletter

Have a terrific day everyone and a safe New Years celebration!

Holiday plants around the home can be dangerous.
The festive atmosphere imparted by the many common household decorations or gifts around the holiday season can consist of decorative plants or plant materials, and most of these holiday plants are actually poisonous to a degree.  The two most common and more toxic of these plants are holly [...]img alt=”" border=”0″ src=”http://stats.wordpress.com/b.gif?host=muddyyork.comblog=5188131post=2039subd=centraltorontorealestateref=feed=1″ /img src=”http://feeds.feedburner.com/~r/MuddyYorkARealEstateBlog/~4/W-LodcalBq8″ height=”1″ width=”1″/

By Matt Goulart
As Canada economy grew for the second month in a row in October, we have economists declaring once again the end to the Great Recession.
What has helped the economy grow, is the cold weather and a good real estate market.
The real estate market has helped give a good push from the beginning when [...]img alt=”" border=”0″ src=”http://stats.wordpress.com/b.gif?host=muddyyork.comblog=5188131post=2046subd=centraltorontorealestateref=feed=1″ /img src=”http://feeds.feedburner.com/~r/MuddyYorkARealEstateBlog/~4/iNBdOrismZY” height=”1″ width=”1″/

Carbon monoxide is a tasteless, colourless and odourless gas that can be extremely toxic to humans and animals. Carbon dioxide forms when there is not enough oxygen available to form carbon dioxide, most often in combustion processes that occur in everyday household appliances and systems.
Faulty fuel-burning appliances such as heaters, furnaces and stoves as well [...]img alt=”" border=”0″ src=”http://stats.wordpress.com/b.gif?host=muddyyork.comblog=5188131post=2036subd=centraltorontorealestateref=feed=1″ /img src=”http://feeds.feedburner.com/~r/MuddyYorkARealEstateBlog/~4/gIqDXmRH2v8″ height=”1″ width=”1″/

Apartment vacancies are rising across Canada, especially in Toronto.
Last week the Canada Mortgage and Housing Corporation released figures showing that apartment building vacancy rates have risen to 3.1 per cent this year from 2.1 per cent last year mostly in part because of the competition from condominiums.
The amount of increase in residencies in condominiums and [...]img alt=”" border=”0″ src=”http://stats.wordpress.com/b.gif?host=muddyyork.comblog=5188131post=2033subd=centraltorontorealestateref=feed=1″ /img src=”http://feeds.feedburner.com/~r/MuddyYorkARealEstateBlog/~4/1PvBJf0Bwi0″ height=”1″ width=”1″/

I’ve talked a lot about advantages of FHA mortgages lately. FHA is the only low down payment program left standing, and with conventional guidelines tightening continually, more and more home buyers (including many who can qualify for conventional financing) are finding FHA to be the best alternative. Most of the reasons people choose FHA is because FHA works best for their present situation (the advantages include lower down payments, more flexible credit standards, better approval guidelines for condos, and the list goes on). But there is one big reason why borrowers might look at FHA not for what it offers now, but for the future benefits. If you finance with FHA now, your home may be worth more when you go to sell it some time down the road.

One of the great features of FHA mortgages (and VA mortgages) is that these loans are assumable. What that means is that when you go to sell your home, the new buyer can take on your loan under the same terms as what you have. This doesn’t mean much if interest rates stay low, like they are now, but if interest rates rise, this could be a huge advantage for the home buyer, and for you. It’s easy to see why this will be a benefit for the new home buyer, if rates are at 7.0% and the new buyer is able to take on your mortgage at 5.0%, they are seeing an immediate savings in their monthly payment. This could be a difference of hundreds of dollars per month. The new buyers will need to make up the difference between what you are selling for and your current balance, but for a qualified buyer, your mortgage makes your home a bargain. But being able to offer a better mortgage to your future buyer, is also a big advantage for you as the seller.

The assumable mortgage helps the seller in two ways:

1. It makes it easier to sell than comparable homes – If you offer a home with lower payments then comparable properties, this gives you a competitive advantage and a reason why buyers would want to buy your home over others.
2. Home buyers will actually pay more – Think about it, the value of anything breaks down to what people can afford to pay for it. When you buy a car, they don’t focus on the total cost of the car, they focus on the payments. Whenever the auto companies have a sale, they don’t lower the price, they lower the interest rate (0% financing for qualified buyers!). If a future buyer plans to live in the home long term, that difference of hundreds of dollars each month makes the home more valuable to them, and means that they will pay thousands more for the privilege of taking over your mortgage.

This concept hasn’t been in a factor in years because FHA mortgages were a small slice of the overall mortgage market, and rates were so low it was easier for home buyers to get their own financing. But back in the eighties this was a BIG thing. With inflation high, mortgage interest rates in the early 1980s skyrocketed up to the high double digits. Few could afford conventional financing at these high rates, so the biggest way to sell homes was with “creative financing”. This often meant taking over assumable mortgages and using seller financing (where the seller would take back part of the profit as a second mortgage). Back then homes with assumable mortgages were much more likely to sell, and to sell higher than other homes.

No one knows for sure how high interest rates will rise down the line, but it is a safe bet they will be higher. Mortgages now are at the lowest rates we’ve seen in 40 years. Rates have been kept low due to the Feds mortgage buying program (which ends this Spring) and with all the government borrowing over the last year to keep the economy afloat, at some point inflation is going to raise it’s ugly head and mortgage rates will be much higher. I don’t think we are going to have the hyper-inflation that some are calling for, but a few years from now, people will look at mortgages in the 5% range as once in a life time bargains. This isn’t the main reason home buyers should look at FHA when they buy their home, it is more like icing on the cake, and one more benefit to keep in mind.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Downers Grove Mortgage Company

Recent pronouncements by our dear federal Finance Minister Flaherty may change the options home buyers currently have when considering purchasing a Toronto house or condo.

Up until about mid-year 2008 every Canadian home buyer had the option of taking a 25-, 30-, 35- OR 40-year amortization on their mortgage.  This means that for a 40-year amortization for example, the mortgage payments are spread out as if to pay that mortgage back in 40 years if the interest rate and payments stayed the same all the way.  We had zero down payment options available on insured mortgages.

The benefit this brings is that monthly mortgage payments are lowered the longer the amortization and therefore more people can qualify for mortgage financing.

Then in July 2008 the Federal Government wisely adjusted the rules so that the maximum amortization available was 35-years and the minimum down payment on a high-ratio mortgage was 5%. 

To help out a bit with this increased down payment requirement, the government also changed the Home Buyer’s Plan rules where first-time buyers could now withdraw up to $25,000 each from their RRSP to assist with their down payment or closing costs.

So… we’ve come through the recession in apparently one piece, the Toronto real estate market is moving very strongly and contributing greatly to the overall economy and what does the Federal Government NOW want to do?  Increase the down payment required to obtain mortgage financing even further AND eliminate at least the 35-year amortization mortgage payment option!

This will certainly put a damper on the Toronto home buying and selling market.  Many first-time buyers have limited down payments saved.  With an average sale price in the GTA of approximately $400,000, a 5% down figure already means that the minimum down payment required is $20,000.

To make this $400,000 average sale price affordable, most buyers (both first-time and move-up) are opting for a 35-year amortization and there are some good reasons for it. 

You can always increase your monthly (or ideally bi-weekly) payments with current bank pre-payment privileges but it’s much more difficult bureaucratically to lower your payment level. 

For example, a couple who are planning to expand their family in the future might take a 35-year amortization, increase their payments while both spouses are working, and then scale back to the 35-year am for the first-year perhaps while incomes are lower and family expenses are higher.

If the 35-year amortization option is lost, this will make it much more difficult to plan strategically for some home owners.

So… use it or lose it!  If changes are made by Flaherty, they’ll probably be in early spring - March or April time frame.  To make sure you have a 5% down / 35-year amortization option locked in, you’ll need to make a purchase in the first 90 days of 2010 and you’ll need to have a mortgage rate locked in for perhaps as long as six months.

Currently our Toronto’s Real Estate Team - Thomas & Sally Cook PLUS team at RE/MAX Hallmark has the ONLY agreement with a big-five Canadian bank where our clients can lock in their mortgage rate for a full SIX months.

Now, best of all, getting a mortgage pre-approval doesn’t cost you a penny AND you’ll get it in writing.  Most bank branch lenders don’t want to be bothered going to all the work involved to do what we call a “FULL Mortgage Pre-Approval” but our Toronto’s Real Estate Team considers it essential to protect our buyers when they go out to buy a house or condominium.

To get your 180-day rate guarantee and full mortgage pre-approval IN WRITING, you just need to ask.  You’ll be glad you did!

Ironically, Flaherty’s pronouncement may help to make what he fears most… an extremely busy house buying market… come to fruition.

U.S. largest mortgage agencies Freddie Mac and Fannie Mae announced the suspension of evictions of debtors during the Christmas holidays. Loosening will operate from 19 December 2009 to January 3, 2010. It is reported by The Real Deal.

President and CEO of Fannie Mae, Michael Williams told the publication that the decision “influenced by the spirit of Christmas.” According to him, no family should face the prospect of being evicted during the holidays. Williams supported the CEO of Freddie Mac Charles Haldeman, who said that the families of debtors must feel during the holidays more comfortable and calm.

By mortgage agencies joined the bank Citigroup, which suspended the eviction debtors a month - until 17 January 2010.

As previously reported, analysts at RealtyTrac, in the third quarter of 2009 937.840 thousands of owners ‘mortgage’ homes in the United States received notice from lenders of potential or impending withdrawal of housing debt. Thus the warning given to every 136 owner, that is the highest quarterly rate since 2005. Increase in the number of debtors are not paying interest on loans on time, analysts attributed to high unemployment in the country.

Rates are sharply higher over the last two days. This is somewhat of a good news/bad news situation. The good news is that we are just days away from Christmas, and there aren’t a lot of people locking in their loans now (if you are refinancing your mortgage you probably already locked in, and if you are buying a home you’ve likely put it on the back burner until after the holidays). The bad news is that if you are ready to lock in, your paying about a quarter point higher than what you would have just a few days ago. Part of this volatility is low volume trading on the bond markets, which exaggerates any movements. Mortgage rates are still in the low range, but we are now nearing the high point of that range. Early in the day 3rd quarter GDP was adjusted lower from a gain of 2.8% increase down to 2.2%, showing less growth in the economy. This would normally be looked at as a good sign for interest rates, but shortly after that release, new home sales for November were released showing an increase of 7.4%, much higher than expected. Perhaps the best news is that with Christmas on Friday, this is a short week and it will be over soon. Rates are still great, and with volatility high it is possible that we will turn around and jump back in the other direction. But for now it looks like Santa is bringing mortgage rate shoppers a lump of coal along with their presents.

Here are the current Chicago Illinois Home mortgage rates for an A+ (740 Fico or above), full doc single family home purchase or rate/term refinance on a 45 day rate lock, with 0 points, and no origination fee. Mortgage rates in other states may be slightly different, give me a call and I will give you an accurate quote for your particular situation. The conventional and FHA rates are based on the highest conforming loan amounts, which give the best pricing. Again, there are many factors which affect mortgage rates and your ability to be approved for a loan. These rates may not fit your situation and this is just a sample of the programs that are out there. If you would like a quote for your personal situation, or to get pre-approved for a mortgage, give me a call or contact me (Illinois mortgage company) and I’ll take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

            
        
For Jumbo loans over $417,000

(Another option is to break your Jumbo loan into 2 parts – conventional to the limit of $417,000 and a HELOC or fixed second mortgage for the rest. The blended rate is usually much better than a single loan would be.)

FHA LOANS – 3.5% down payment – FHA Maximum varies by County

FHA APR reflects 3.5% down payment and the effect of mortgage insurance on the loan. Call for information on no-cost FHA streamlined Refinances

FHA 203K Rehab Loans

VA Veterans Administration 0 Down Loans

Call for information on no-cost VA Streamlined Refinances

These are just a few of the mortgage programs and mortgage rates available. Which option is best for you depends on your own specific goals and needs. If you have any questions or want to go over your situation in depth, let me know how I can help.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Downers Grove Mortgage Company

So the real estate market is booming and it seems that not much else is! In 2009 there has been a 20% increase in the average purchase price of a home in Canada. There is excessive demand in the market and the government is starting to worry that home buyers are taking on too much debt.

The government says they are going to keep a close eye on the market and the debt load of Canadians to see if we are getting ourselves into too much trouble. There is talk they will change the laws and you’ll need to have  a larger downpayment before you can qualify for your mortgage. They may also reduce the maximum amortization period from the current 35 year maximum. A balance will need to be maintained to stop people from being overextended, while not increasing the rates for the rest of us.

So, what does all this mean for you? Well, don’t panic. You’ll be fine. If you have an existing mortgage, check on your interest rate. Are you locked in or do you have a variable rate mortgage? Perhaps you can refinance to lower your interest rate. If you can, then take advantage of the lower rate to shorten your amortization period. Maintain the same payments you are currently making and chip away at the principal owed. You could be mortgage free years sooner!

If you are thinking about buying your first house, make sure you don’t overextend yourself based on very low interest rates and long amortization periods. You don’t want to find yourself in a bind when it comes time to renew your mortgage and interest rates have increased. Ask your mortgage broker or financial adviser to educate you on what the difference in your payments would be if the interest rates were 1% or 2% higher than they are now. Could you still afford that mortgage?

Most mortgages are arranged using conservative numbers, so don’t worry. Just ask plenty of questions and do business with people you can trust. Email me with any questions you have and I’ll give you as much information as I can.

Avenue Road is certainly one of the signature streets in Toronto—yet somehow it seems the uppermost stretch of this important city street has been somewhat neglected and underutilized. That is about to change, with the recent completion of a study of Avenue Road between Lawrence and Wilson avenues.
The Avenue Road study conducted by the city [...]img alt=”" border=”0″ src=”http://stats.wordpress.com/b.gif?host=muddyyork.comblog=5188131post=2031subd=centraltorontorealestateref=feed=1″ /img src=”http://feeds.feedburner.com/~r/MuddyYorkARealEstateBlog/~4/OGvKdyXyn4Y” height=”1″ width=”1″/

After all the volatility of the last few days, mortgage rates today are flat. There are no new economic reports coming out today so this should mean a quiet end to the week. Rates are still near their all time lows, and I’m guessing that one year from now, these rates will be looked at as a real bargain.

Here are the current Chicago Illinois Home mortgage rates for an A+ (740 Fico or above), full doc single family home purchase or rate/term refinance on a 45 day rate lock, with 0 points, and no origination fee. Mortgage rates in other states may be slightly different, give me a call and I will give you an accurate quote for your particular situation. The conventional and FHA rates are based on the highest conforming loan amounts, which give the best pricing. Again, there are many factors which affect mortgage rates and your ability to be approved for a loan. These rates may not fit your situation and this is just a sample of the programs that are out there. If you would like a quote for your personal situation, or to get pre-approved for a mortgage, give me a call or contact me (Illinois mortgage company) and I’ll take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

For Jumbo loans over $417,000

(Another option is to break your Jumbo loan into 2 parts – conventional to the limit of $417,000 and a HELOC or fixed second mortgage for the rest. The blended rate is usually much better than a single loan would be.)

FHA LOANS – 3.5% down payment – FHA Maximum varies by County

FHA APR reflects 3.5% down payment and the effect of mortgage insurance on the loan. Call for information on no-cost FHA streamlined Refinances   

FHA 203K Rehab Loans

VA Veterans Administration 0 Down Loans

Call for information on no-cost VA Streamlined Refinances

These are just a few of the mortgage programs and mortgage rates available. Which option is best for you depends on your own specific goals and needs. If you have any questions or want to go over your situation in depth, let me know how I can help.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Downers Grove Mortgage Company

The Toronto Real Estate Board released the mid December 2009 statistics for the Greater Toronto Area.  The number of sales to date was 3,079 in the first half of the month compared to 1,487 in mid-December of 2008.   The average price for the GTA was $360,652 mid-December of last year compared to $423,103 this year.
In [...]img alt=”" border=”0″ src=”http://stats.wordpress.com/b.gif?host=muddyyork.comblog=5188131post=2028subd=centraltorontorealestateref=feed=1″ /img src=”http://feeds.feedburner.com/~r/MuddyYorkARealEstateBlog/~4/MANT6aGM4vg” height=”1″ width=”1″/

The boutique condo concept seems to be growing in popularity of late with the recent and highly successful launches of The Address at High Park and 2 Gladstone. Buyers it seems, are quite enamored by the idea of living in a smaller low-rise building with minimal amenities in exchange for being in the heart of some of Toronto’s oldest and most established neighbourhoods. Enter: ART Condos by Triangle West Developments.

ART Condos will be located on Dovercourt, just south of Queen street West in the heart of the West Queen West neighbourhood. Dovercourt might be considered off the beaten path by anyone living near the subway lines downtown, but this area is well-known by some of Toronto’s hippest and trendiest people. The area was put on the map a few years back when The Drake opened it’s doors. A Starbucks followed, and Queen Street West has never been the same. Although it is still a gritty haven for artists and creative-types, West Queen West is also now a hotbed of hip and brimming with new condo projects including 2 Gladstone, Westside Gallery Lofts, and Bohemian Embassy.

Very much like The Address at High Park and 2 Gladstone, I expect all studios, 1 bedrooms, and 1+dens to sell out very quickly in this project.  Prices are going to start in the low $200s. For more information about ART Condos including details on any upcoming VIP sales event opportunities, please contact me and bookmark this page for updates.

Mortgage rates are getting better today. Yesterday’s FOMC (the Fed) meeting ended without any bomb shells dropped. The Fed sees signs of improvement in the labor market, but the key line was – “economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.” With rates for the big banks staying at the 0-.25% range they have been in all this year, rates for mortgages should stay low for some time. But not necessarily as low as they are now. The Fed also reaffirmed that they will be finishing up their program of buying mortgage backed securities by the end of the first quarter of 2010. This program has been a big reason that rates have dipped to historic lows. Estimates are that this Fed support accounts for up to 1/2% in interest rates. In other words, without this factored in, mortgage rates would be half a point higher. At some point the market will readjust, probably before the Fed stops the buying program, and if new investors don’t come into the market to offset the Fed, rates will rise. So rates are absolutely great, but get them while you can because these low rates won’t last forever.

In today’s news, initial unemployment claims came in higher than expected (bad news for the economy but good news for mortgage rates), on the other hand, the Philadelphia Fed report came in showing higher growth than expected. The warm feelings from the Fed news release and the unemployment increase held more weight. Mortgage bonds are rallying and mortgage rates are about an 1/8 better today than they were yesterday.

Here are the current Chicago Illinois Home mortgage rates for an A+ (740 Fico or above), full doc single family home purchase or rate/term refinance on a 45 day rate lock, with 0 points, and no origination fee. Mortgage rates in other states may be slightly different, give me a call and I will give you an accurate quote for your particular situation. The conventional and FHA rates are based on the highest conforming loan amounts, which give the best pricing. Again, there are many factors which affect mortgage rates and your ability to be approved for a loan. These rates may not fit your situation and this is just a sample of the programs that are out there. If you would like a quote for your personal situation, or to get pre-approved for a mortgage, give me a call or contact me (Illinois mortgage company) and I’ll take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

For Jumbo loans over $417,000

(Another option is to break your Jumbo loan into 2 parts – conventional to the limit of $417,000 and a HELOC or fixed second mortgage for the rest. The blended rate is usually much better than a single loan would be.)

FHA LOANS – 3.5% down payment – FHA Maximum varies by County

FHA APR reflects 3.5% down payment and the effect of mortgage insurance on the loan. Call for information on no-cost FHA streamlined Refinances   

FHA 203K Rehab Loans

VA Veterans Administration 0 Down Loans

Call for information on no-cost VA Streamlined Refinances

These are just a few of the mortgage programs and mortgage rates available. Which option is best for you depends on your own specific goals and needs. If you have any questions or want to go over your situation in depth, let me know how I can help.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Downers Grove Mortgage Company

Residential mould is very difficult to identify simply based on the colour or texture. The best way to have the mould identified is by contacting an expert or using a piece of Scotch tape to lift a sample of the mould off of the surface it has inhabited. The following mould varieties and the symptoms [...]img alt=”" border=”0″ src=”http://stats.wordpress.com/b.gif?host=muddyyork.comblog=5188131post=2018subd=centraltorontorealestateref=feed=1″ /img src=”http://feeds.feedburner.com/~r/MuddyYorkARealEstateBlog/~4/PSAzTO7pi8U” height=”1″ width=”1″/

In the Durham Region there were 695 sales of single family homes in November which is down 19% from the 860 record sales in October, but up a whopping 70% from the 409 sales in November, 2008! Not bad at all. One year ago many people would have bet that the market would be back up tot the levels we saw in November 2004 to 2007 which averaged 661. At $286,497, average prices dipped slightly from October but did increase 6.5% from the $268,902 we saw in November, 2008.

The number of listings on the MLS® system have dropped again this month, to 1,593 from 1,753 last month and 44% less than the 2,838 of November, 2008.  This slumps is reflective of a seller’s market!

So what will the final numbers be for 2009? Tune here to find out and in the meantime, have a fantastic Christmas!!

The Consumer Price Index (CPI – a measure of inflation at the consumer level) bumped higher this morning, coming in at a .04% increase for November. Inflation is the big threat now, and the reason rates have ticked up over the last few weeks. It’s hard to see how inflation will take hold when unemployment is over 10% and home and real estate values generally are under pressure. Mortgage bonds (which are the basis for mortgage rates) are improving this morning after hitting and bouncing off the worst part of their trading range. What happens now isn’t that important though as the direction of the market (at least for now) will be set after the Fed releases the statement from their meeting this afternoon. If they hold true to form we will see some wording reflecting that the economy is improving and there are reasons for optimism, but the recovery is fragile and there are no signs of inflation on the horizon. If the statement is too optimistic, or when reading the tea leaves it highlights inflation in any manner, bonds will tank and rates will move higher. I think the trading range will hold and we may even see slightly better rates over the next few days. We will know soon enough.

Here are the current Chicago Illinois Home mortgage rates for an A+ (740 Fico or above), full doc single family home purchase or rate/term refinance on a 45 day rate lock, with 0 points, and no origination fee. Mortgage rates in other states may be slightly different, give me a call and I will give you an accurate quote for your particular situation. The conventional and FHA rates are based on the highest conforming loan amounts, which give the best pricing. Again, there are many factors which affect mortgage rates and your ability to be approved for a loan. These rates may not fit your situation and this is just a sample of the programs that are out there. If you would like a quote for your personal situation, or to get pre-approved for a mortgage, give me a call or contact me (Illinois mortgage company) and I’ll take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

For Jumbo loans over $417,000

(Another option is to break your Jumbo loan into 2 parts – conventional to the limit of $417,000 and a HELOC or fixed second mortgage for the rest. The blended rate is usually much better than a single loan would be.)

FHA LOANS – 3.5% down payment – FHA Maximum varies by County

FHA APR reflects 3.5% down payment and the effect of mortgage insurance on the loan. Call for information on no-cost FHA streamlined Refinances   

FHA 203K Rehab Loans

VA Veterans Administration 0 Down Loans

Call for information on no-cost VA Streamlined Refinances

These are just a few of the mortgage programs and mortgage rates available. Which option is best for you depends on your own specific goals and needs. If you have any questions or want to go over your situation in depth, let me know how I can help.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Downers Grove Mortgage Company