Living Better

Market Update

Sarah Rumney

I was challenged recently to choose a word for the year. What do I mean “choose a word?” Choosing a word means thinking about something you want to work on, something you want to try harder to do, just one thing… and attach a word to it. I chose a word already and then I decided this morning I might change it.

I am encouraged by Teresa R. McLamb’s article in this week’s Greater Wilmington Business Journal, “Demand rebounds for some homes.”  It is just what I need to hear at the beginning of a new year and a new month. Wilmington Board of Realtors President Mary Martin of Network Real Estate says, “the local market has had five consecutive months of strong pending sales which indicates it’s not a seasonal blip. On the national level pending sales are up 15 percent and existing home sales for the year were up 44 percent.” Now that’s encouraging!

Interest rates are still at all time lows and the tax credit for first time home buyers and returning home buyers doesn’t expire until April 30^th (with closings occurring no later than June 30^th). I am so encouraged! I have a new word for the year – encouraged. I hope you will consider the “one word challenge” and that you will stay encouraged!

You can read the full article by McLamb at http://www.wilmingtonbiz.com/industry_news_details.php?id=1031 .

Mortgage Update

Sarah Rumney

Happy Holidays Everyone! I hope the season has been fun, safe and relaxing for you all. It has been interesting watching the pundits and guests on the business show circuits put in their predictions for market and economic activity during 2010. I tend to err on the conservative’s side and believe that the government will decrease their support and the Fed will increase rates sooner rather than later. Others believe that the markets are on the way up, that history indicates buying stocks now at their lows will lead to great profits in the long run. It’s the theory of the “V” – the sharper the fall, the greater the rise. Either way, it will be an interesting year and we will see rates increase at some point.

Important facts to remember for 2010:

1. 1. Rates will eventually increase. I believe it will be in April or May 2010.
2. 2. The first time home buyer/re-entry buyer (if you’re buying a new home after owning your present one for 5+ years) expires April 30^th.
3. 3. I am a mortgage professional and can help you navigate the waters during this ever-changing time. I am your number one mortgage resource.

Mortgage Update

Sarah Rumney

Last week’s economic data did keep some excitement in the market place. Interest rates increased following the news of the employment rate dropping lower than expected to 10.0% (down from 10.2% in September/October). This and other positive economic news may cause the Fed to begin discussions about raising interest rates at this month’s meeting instead of in the early part of 2010 as previously expected. Unfortunately, as we see the economy gain strength, interest rates will continue to increase. I will continue to keep a close eye on this news and keep you updated.

A reminder regarding the home buyer tax credit – contracts for your first time home purchase must be signed by April 30^th and closed by June 30^th. Keep in mind that it takes 3-4 weeks to close a mortgage. You will want to have your mortgage pre-approval in place before you begin your home search. Call me to go through the application (just takes about 15 minutes).  I’m here to be your number one mortgage resource. Please do let me know what questions you have or to get started.

This website will answer questions you may have regarding the tax credit http://www.federalhousingtaxcredit.com/ .

Mortgage Update

Sarah Rumney

The Fed Chairman Ben Bernanke will be speaking at the New York Economic Club today and should echo his earlier statement that rates will remain low.  Rates remain under 5.0% today and should stay within an 0.125% this week. Do you know what your current rate is? Check out your mortgage statement and give me a call for a quote. It could be the perfect time to refinance your home.

I hope the website I emailed last week regarding the first time home buyer tax credit was helpful. www.federalhousingtaxcredit.com Check out the FAQ’s! It is an easy-to-read compilation and includes different ways to apply your credit. Did you know you could reduce your income tax withholding and give yourself a raise for the year? (See FAQ #19.)

I have a great story for you all. I worked with a client just last week who called to go through the qualifying process for her first home purchase. She knew me personally and had heard about the first time home buyer credit and was curious if it would work for her. We went  through the loan application and had her approved in about an hour! It all started with her figuring her rent is about the same as a mortgage payment and inquiring about the tax credit. Now she will be in her first home by Christmas! I will be glad to go through the question and answer process of qualifying and see if you could be pre-approved too. Call (910.200.3549) or email me any time.