Thank you for visiting Grand Rapids Real Estate Resource! For current information about the Grand Rapids Real Estate market, check out www.stevevolkersgroup.com. There you can find properties for sale and for rent as well as information on new construction homes and what’s going on in West Michigan. See you there!
7451 Crystal View
4 Bedrooms ~ 3.5 Bathrooms ~ 2,600 Sq. Feet
This beautiful home has been remodeled from top to bottom. The kitchen and eating area features new cherry cabinets and elegant granite countertops as well as environmentally friendly bamboo flooring. The house has new carpet and fresh paint throughout. . The second floor master suite has cathedral ceilings and French doors opening up to the huge master bathroom, featuring a whirlpool tub, separate tiled shower, refinished cabinets and large walk-in closet. If you still need more room, the basement has already been studded for another bedroom, full bathroom, rec room, and media room. With a full price offer, the seller will complete the drywall in the basement. You can also pick out a range hood and backsplash at the seller’s expense!
I have great news to share. The FHA loan limits have just been increased. We did see a major increase in the new loan limits which was not expected at least here in Michigan. The new loan limit for most county’s in our area is $271,050. That is up from $200,050. FHA is going to be one of the absolute best mortgage solutions for people this year and potentially years to come.The program is not regulated by Fannie Mae or Freddie Mac so even if the property is labeled as being in a “DECLINING MARKET” it does not change the loan structure of FHA loans. Fannie Mae and Freddie Mac make lenders reduce the LTV by 5% for all properties in a declining market. FHA does not require us to reduce LTV’s by 5%.
There are many mortgage brokers and banks in our area that have not been doing FHA’s because they didn’t believe it was a worthwhile program. It is an absolute must in the market today. I’m proud to say that we’ve been advising a lot of our clients in this direction over the past 6 months because of it’s flexibility on LTV, allows for 100% financing in DECLINING MARKETS, has reduced monthly PMI, allows for non-owner occupant borrowers to co-sign, and often times has lower interest rates than a Conventional 30 yr. Fixed program.
If you’d like more information on how this could benefit you or anyone you know do not hesitate to contact me. I am extremely pleased to see the government taking action and making a positive impact on our industry. This will truly be a saving grace for many people today.
I look forward to the opportunity to help
The Fed has continued to lower the Fed funds rate through the first quarter of 2008. How does this affect the interest rate on my mortgage? Should I wait to purchase my new home until the Fed is done with its rate cuts? I’ve been thinking of refinancing, but should I hold off on this until the Fed has stopped cutting rates?The statement and questions I wrote above are on the top of everyone’s mind today especially if you are a home owner hoping to refinance or a potential home buyer.
I have attached an article here that will help dispel the myth that when the Fed lowers the Fed funds rate that it actually reduces mortgage rates by the same amount. The article is authored by market expert, Barry Habib. I have been a member of Barry’s online service called “Mortgage market Guide” since 2003. Barry’s service is a must for mortgage professionals that want to know exactly what is happening in the bond market and when the best time to lock or float interest rates for their customers.
Interest rates for mortgages such as the 30 yr. fixed loan, 15 yr. fixed loan, FHA, MSHDA, etc… are all based on the value of mortgage backed securities in the bond market. The Fed can only control the Discount rate which is what banks can borrower money at and the Fed funds rate. The Fed has no direct control over the bond market or how the 30 yr. fixed interest rates change on a day to day basis.
As bond prices go up, interest rates on mortgages go down. As bond prices go down, there is less demand for bonds and then interest rates go up. If you watch how the NASDAQ is trading throughout the day you should be able to see the bond market working in the opposite direction. When the stock market is doing well, there is less money going into the bond market. When there is less money going into the bond market, mortgage rates will drift higher due to less demand. When the stock market is having a couple negative days in a row, it’s likely that the investment dollars are flowing into the bond market instead, therefore helping lower mortgage rates.
The Fed reducing the Fed funds rates helps individuals and businesses that have shorter term loans that are tied to the prime lending rate. The reduction of the Fed funds rate often creates higher interest rates for long term mortgages that most Americans are concerned about. Keep this in mind the next time the Fed lowers the Fed funds rate which will be on March 18. It does not necessarily mean lower interest rates on your mortgage.