Rates increasing... but still Low

The Labor Department said 162,000 jobs were added to payrolls in March. Economists had forecast employer would add 190,000 jobs.

The report adds further evidence that the economy is recovering, even though jobs were created at a slower pace than forecast. Investors often sell Treasurys and favor riskier assets like stocks and commodities when the economy is improving.

That’s because investments other than Treasurys traditionally provide the potential for bigger profits. Inflation also typically increases when the economy is strong, so rates must move higher to keep pace.

Interest rates have been creeping higher in recent weeks as more data shows the economy is on the upswing, even if growth is slow. Friday’s jobs data just adds to that string of upbeat reports.

The yield on the 10-year note maturing in February 2020 rose to 3.93 percent from 3.87 percent late Thursday. The yield on the 10-year note is often used as a benchmark for consumer loans. Its price is down 11/32 at 97 18/32.

The yield on the 10-year note is approaching 4 percent for the first time since October 2008, around the time the credit crisis peaked and investors poured money into the safety of bonds.

With economic forces putting pressure on rates to rise, NOW IS THE TIME TO LOCK IN YOUR MORTGAGE RATES!!!

-Call today. Gary Schoenholz – Mortgage Manager – 864-979-1111
-www.GaryTheMortgageExpert.com – 16+ years of experience.

-Gary Schoenholz – Loan Officer Manager- Horizon Financial, Inc. www.GaryTheMortgageExpert.com. Phone- 864-979-1111

http://forecasts.org/fha.htm

-Gary Schoenholz (864)979-1111.  15+ Years of mortgage experience. Website:  www.GarytheMortgageExpert.com

We are all happy rates are down in 2010!

The so called underemployment rate, which indicates part-time workers who would prefer a full-time position and people who want to work but have given up looking rose to 17.3% from 17.2%

Over the last 2 years the U.S. has seen 7.2 million job losses, this has been the biggest as a percentage of all jobs since World War II was ending in 1944-45.

Though most economist agree that we will see job gains in the coming months, most agree that it will be a slow increase and many predict that the unemployment rate towards the end of 2010 will still range between 9-10 percent.

Posted By Randy Ratchford. Randy can be reached toll free 877-627-9211 ext107 or by email RRatchford@HorizonFinancial.org

Mortgage rates are near an all time low, but with many indicators pointing toward future inflation (a interest rate killer that always increases mortgage rates), now is the time for the mortgage rate fence sitters to lock a rate.  It’s only a matter of time (a few more weeks, maybe a few more months) and rates will approach the more normal 6% to 7% range that is the typical average for the last 10 or 20 years.  Right now, rates under 5% are still available, which is amazing.  Lock in today, before it’s too late.

-Gary Schoenholz – Manager- 864-979-1111,

 Website: www.GaryTheMortgageExpert.com

Greenville SC:   There has been a -6.3% decline this past year in the Zillow Home Value Index and the Index has shown a pretty consistant 0.5% approximate drop each month, which is a little concerning, but on the positive side, there has been better news with the Total homes sold this year.  Though the last full month on record in October 2009 the number of homes sold in the city of Greenville was only 63 (not a great number and close to the 5 year low back in February 2009), the numbers really have been better for most of the last few months.   In July and September, we almost hit 100 houses sold in Greenville (96 and 98, respectively).  Overall, the last 6 months have shown improvement compared to the previous 6 months.  Perhaps because of the Home Buyer’s Tax Credits being offered by the IRS.

Anderson SC:  Anderson has shown similar trends as Greenville.  Anderson’s one year change of the Zillow Home Value Index has been -4.6%, not very good.  On the otherhand, the total homes sold in Anderson has shown some signs of life the last few months.  The last month in October fell to an unimpressive 23 homes sold, but the 2 previous months hit a yearly high of 30 and 32 in August and September and overall has shown some promise of recovery.

Spartanburg SC:  The city of Spartanburg SC has actually shown the most promise of the bigger Upstate SC cities as far as its housing numbers are concerned.  The Zillow Home Value Index has actually increased (+8.6%) the last year.  Also the number of homes sold has recovered from it’s low point early this year (January, only 23 homes sold) to double on several occasions (it sits at 46 in the last October 2009 report and hit 52 in July).  All good signs.

Other smaller cities showing promise:  Greer SC: (+2.7% Zillow Home Value Index for the last year) and got to a 1 year high in homes sold in July at 46 homes, but has shown some recent sluggishness (dropped to the 30’s the last 3 months, 31 in October 2009).   Pickens SC: Pickens, though small, has shown some growth through our statistics.  The ZHV Index has gone up +11.5% the last year (very strong).

Overall, compared to many housing markets across the United States, the Upstate of South Carolina looks relatively strong.  Hopefully these trends of “acceptable losses” or some slight increases of home values can continue into the new year.  Let’s hope 2010 starts a general housing recovery, but that, of course, remains to be seen.

-Gary Schoenholz – Loan Officer Manager – www.GaryTheMortgageExpert.com 864-979-1111 cell phone, call for free mortgage rate quotes.

For many American homeowners, interest paid on a mortgage is tax deductable in the year in which it was paid.

Knowing that, eligible homeowners can increase their 2009 tax deductions just by making their January 2010 mortgage payment before the end of the year.

By paying in 2009, the mortgage interest paid can be applied against 2009’s itemized tax deductions even though the payment isn’t technically due until 2010.

It can reduce your tax burden.

And, if you think you’re paying the mortgage “in advance”, remember mortgage interest is paid in arrears; payment due January 1 accounts for interest accumulated in December 2009, anyway. 

Tax planning is a complicated issue and not all homeowners qualify for mortgage interest tax deductions. Check with your tax professional before making tax planning decisions.

If you don’t have an accountant you trust, call or email me anytime; I’m happy to make a recommendation to you.

Posted by Scott Fowler.  Scott can be reached @ 864-527-8900 x104 or SFowler@HorizonFinancial.org.  Visit Scott’s website @ www.ScottFowlerTeam.com .

15 Year Fixed Mortgage

You want to save as much as $100,000. or more towards retirement?  Guaranteed!  No market fluctuations.  Change your 30 year fixed to a 15 year fixed.  With 15 year fixed as low as 4.25% and APR’s only 4.45% as of today, 15 year fixed are a great way to save many thousands in interest and payments.  How can you save $100,000. or more?  Review the following numbers:

$100,000. loan – If someone is 2 years into a 30 year loan, they have 28 years or 336 payments remaining in mortgage payments.  If the mortgage was $103,000 2 years ago at 6% (the approx. average rate 2 years ago), the payment would be $617.54..  That means $207,492. in remaining payments ($617.54 x 336 payments = remaining payments).  A new $100,000. loan at 4.25% has a 15 year payment of only $752.28 per month.  That means remaining payments (752.28 x 180 =) would be only $135,410..  That means going to a 15 year fixed loan would save you $72,081. in total payments!!!  Plus your home would be FREE and CLEAR in just 15 years instead of 28 years.  The payment increase to go to 15 years is NOT double, it’s only $135. more per month.  A small price to pay to guarantee you a savings of $72,000.+ in mortgage payments.  That certainly has out performed most 401K’s and IRA’s the last 15 years, with NO risk.  Let’s look at a larger loan amount.

$150,000. loan -   2 years into a 30 year loan (336 payments remaining).  If the mortgage was $155,000. 2 years ago at 6% (the approx. average rate 2 years ago), the payment would be $929.30..  That means $312,245. in remaining payments ($929.30 x 336 payments = remaining payments).  A new $150,000. loan at 4.25% has a 15 year payment of only $1,128.42 per month.  That means remaining payments ($1,128.42 x 180 =) would be only $203,115.  That means going to a 15 year fixed loan would save you $109,129. in total payments!!!  A huge amount of GUARANTEED money over the life of your mortgage, with only a small payment increase.  That is a solid retirement savings plan.  The larger the loan amount, the greater the savings, especially if your current mortgage rate is over 6%.

Take advantage of the huge savings and the low rates of the 15 year fixed loan.  Let an experienced mortgage professional run the numbers for you.  You could save over a $100,000..  Plus, if you are 40 years old, as an example, you could have your home FREE and CLEAR by age 55, instead of age 68, like in our above example.  Ask yourself this VERY important question.  Do you want a mortgage payment AFTER you retire???  If not, think strongly about the 15 year fixed mortgage.

-Gary Schoenholz – Loan Officer Manager – Horizon Financial, Inc.  15+ years of mortgage experience, 1000+ loans closed.  864-979-1111.  www.GaryTheMortgageExpert.com website.

Average rates for 30-year fixed mortgages fell this week, matching a record low set last spring and more than a full percentage point below what they were a year ago, Freddie Mac said Wednesday.   Rates for 30-year mortgages averaged 4.78 percent this week, down from 4.83 percent last week and equaling the record low reached the week of April 30.    Freddie Mac has been tracking rates on 30-year fixed mortgages since 1971. Last year at this time, the 30-year fixed rate mortgage averaged 5.97 percent.

Interest rates began dropping last November, when the Federal Reserve began spending $1.25 trillion to buy up mortgage-backed securities in an effort to lower rates, loosen credit availability and bolster the long-suffering housing market.   Since April, rates have hovered near 5 percent, spurring refinance activity. However, credit standards remain stringent, so the best rates usually are available only to borrowers with solid credit and a 20 percent down payment.     Rates for 30-year fixed mortgages are now 0.8 percentage points below this year’s peak set in mid-June. Refinancing at the current rate shaves roughly $100 off monthly payments on a $200,000 mortgage, said Frank Nothaft, Freddie Mac’s chief economist.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day, frequently in line with long-term Treasury bonds.   The average rate on a 15-year fixed-rate mortgage fell to 4.29 percent, down from 4.32 percent last week, according to Freddie Mac. The 15-year rate hasn’t been this low since Freddie Mac started tracking it in 1991.   Rates on five-year, adjustable-rate mortgages averaged 4.18 percent, down from last week’s 4.25 percent. Rates on one-year, adjustable-rate mortgages were 4.35 percent for the second consecutive week.

The rates do not include add-on fees known as points. The nationwide fee for loans in Freddie Mac’s survey averaged 0.7 point for 30-year and one-year loans. The fee averaged 0.6 point for 15-year and five-year mortgages.

posted by:   Mike Owens, Partner/Mortgage Planner at Horizon Financial, Inc.     Mike can be reached by phone  (864) 907- 2678 or by e-mail  MOwens@HorizonFinancial.org