ABBA First Mortgage News

Great rate programs which beats rent programs

January 8th, 2019

There are several new low down payment loan programs that can lead new home buyers down the path to be able to afford the home of their dreams despite slightly higher rates. Along with other lending experts, ABBA First Mortgage agrees that the combination of loan programs designed to reduce up-front costs and technology that speeds the loan process can save consumers significant cash. “We’re seeing an increasing number of people choose low down-payment loans…” said Michael Fratantoni, chief economist for Mortgage Bankers Association. “…and take advantage …of using gift funds for down payments, too, although they’re still being very careful to document the source of the money.”

These days, many buyers can choose from an array of programs offering down payments as low as zero percent (VA and Rural Housing Loans). The “Home Possible” and “Home Ready” programs from Freddie Mae and Fannie Mae allow first-time buyers with an income at or below the median for their area to buy with a down payment of three percent. The down payment funds can be a gift from a relative or an employer, or come through a down-payment assistance program. Both Fannie Mae and Freddie Mac also have guidelines for loan programs with a three percent down payment that are available to all first-time buyers, regardless of their income.

Even if your credit scores are lower than what was the “norm”, our lenders are working with to help our clients with scores in the mid 500’s improve their credit report to the point that they too can be homeowners with a little bit of time, effort and money. It is so well worth it when you think of all the money that you’ll save from throwing away on rent. Please give ABBA First Mortgage a call today and alloe us to find the right program for you! 910-332-0650 Ask for the owner, Rich, and I will personally take care of you.

Although rates have been falling, a steady, slight worsening is forecasted

December 26th, 2018

Rates held after dropping sharply the previous week. For the week ending December 20, Freddie Mac announced that 30-year fixed rates fell slightly to 4.62% from 4.63% the week before. The average for 15-year loans remained at 4.07% and the average for five-year adjustables declined to 3.98%. A year ago, 30-year fixed rates averaged 3.9%. Attributed to Sam Khater, Chief Economist, Freddie Mac — “The response to the recent decline in interest rates is already being felt in the housing market. After declining for six consecutive months, existing home sales finally rose in October and November and are essentially at the same level as during the summer months. This modest rebound in sales indicates that homebuyers are very sensitive to rate changes – and given the further drop in rates we’ve seen this month, we expect to see a modest rebound in home sales as well.” Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes

May you have a blessed Holiday and a Merry Christmas

December 24th, 2018

As we wind down our day this Christmas Eve and get ready to close by noon, we’re thankful to all of our friends and clients that have sent us warm wishes and seasons greetings through numerous cards and emails. It has been a wonderful year and we are always grateful this season to the One that came to earth and was born in a manger who was eventually going to fulfill the plan of salvation that God had planned for each one of us since the beginning of time. It’s hard to believe and it seems like such a far out story, but I know it to be true, for I’ve experienced it rather than just read about it or heard about it. And that is why when we began the quest of having a name for our mortgage company, ABBA (God) First was so fitting at the time and it still is today. So from our hearts to your homes, we wish you all a Merry Christmas!

Mortgage interest rates are expexted to hold steady and may actually improve as we head into the new year. It is my suggestion that you “set the table” and complete your full application that is found on our website and allow ABBA First to assist you in being ready to lock in your rate at a moment’s notice. You can never be too sure when the rates may turn around and go the opposite direction and spike upwards. Call me and let’s discuss rates, fees, or whatever you may want to talk about that concerns you. I’m available at 910-332-0650 ext.101.

Take advantage of the slowdown which may be good news for buyers-

December 18th, 2018

The housing market is showing several signs of slowing, providing a much-needed break for potential buyers who have been waiting to jump into the market. Existing-home sales were 2.4 percent lower in the third quarter than a year ago, and the drop comes at a time when many areas are starting to see an uptick in new listings. Home prices in many markets are no longer rising by double digits—or even single digits—annually. But with a strong economy and low unemployment, the housing dip is more of a rebalancing of the market than a sign of a downturn, housing analysts say.

Sellers are realizing there is a slowdown and are starting to cut their prices to better compete. Nearly 29 percent of listings in major markets during the month ending Oct. 14 saw price reductions, according to the real estate brokerage Redfin. “The cycle has moved from seller-advantage to at least mildly buyer-advantage in many parts of the United States,” writes Kenneth Harney, a nationally syndicated real estate columnist. “If you’re a buyer, take your time. But keep in mind: If you shop diligently, this fall could be a smart time to catch a deal—a marked-down price on the house you really want.”

Source: The Washington Post

 

Our Holiday gift to you

December 13th, 2018

Here is a holiday business opportunity as our gift to you. Do you have a debt elimination plan? Credit card balances are up but so may be your home equity. The average increase in credit card debt last holiday season was over $1,000.  Home equity is at a peak!  How can we help you?  Can we help you try a plan to eliminate all debt?  Here is a quick, but wonderful illustration (comparison) about the impact of a refi.

If you have a $300k mortgage at 4% ($1,432) and $50k in credit card debt at 18% ($1,250), that total monthly payment is $2,682.  Without any negotiating and just for comparisons sake, after refinancing both of these debts together at 5%, your payment will be $1,879, saving you $803 monthly.  And here’s the beautiful part of this equation- if you take the additional $803 that you were paying (which totaled the $2682) and put it towards your mortgage by pre-paying down your principal, you will pay off your 30 year mortgage in 18 years and 2 months.

Please let ABBA First make your dreams come true.  Use a debit card instead of a credit card and follow the steps that we’ve outlined for you above and you will be the recipient of our Holiday gift for you which simply put is a plan for big savings.

Oil prices drop! So do mortgage rates!

November 28th, 2018

As you drive down the street, pass a Gas Station, and see the price per gallon, have you noticed that it seems to be going down a few pennies almost daily?  This drop in price is because the selling price of a barrel of oil on the stock exchange has also dropped and eventually the domino effect typically reaches the MBS market.  In turn, mortgage interest rates have dropped causing a down turn in long term interrest rates.  Today, ABBA  First is offering a discounted rate of 4.50% for a 30 year mortgage.  That’s another industry leading rate in NC for qualified clients.  Call us at 910-332-0650 and apply today for your mortgage.  Don’t delay!  We have seen this happen before where the see-saw principal comes into play.  Start your application process now and set the table before the market takes an upswing.

We saw rate improvements for Thanksgiving which are continuing on so far this week

November 27th, 2018
Rates fell back with the recent stock market turmoil.  For the week ending November 21, Freddie Mac announced that 30-year fixed rates decreased to 4.81% from 4.94% the previous week.  The average for 15-year loans fell to 4.24% and the average for five-year adjustables eased to 4.09%.  A year ago, 30-year fixed rates averaged 3.92%, close to one percent lower than today.  ABBA First Mortgage has been offering one of the lowest rate and term combinations (4.625% with 0 pts.) available for the right clients when they are ready to lock in their mortgage loan transactions. Please give us a call at 910-332-0650 and find out for yourself just what we can do for you whether purchasing or refinancing your home!  Attributed to Sam Khater, Chief Economist, Freddie Mac — “The downward spiral in oil prices and a volatile equities market caused rates on 30-year fixed loans to decline 13 basis points to 4.81 percent, the largest weekly drop since January 2015. Rates on home loans are the lowest since early October and the dip offers a window of opportunity for would be buyers that have been on the fence waiting for a drop in rates.

Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes

Personal Post from ABBA First

November 26th, 2018

Today is Monday and we are back in work and looking forward to serving you well for all your mortgage needs this week.  We hope that you all had a wonderful extended Thanksgiving weekend which was one of the few 4 day weekends that ABBA First acknowledges during the year.  No.  It isn’t necessarily a Holiday that is recognized by the state, the church, or all school systems for that matter.  And we know it certainly isn’t recognized by the retail industry- for Friday is one one of the biggest selling days of the year.  But for ABBA First, we make it a time for family to get together as we celebrate the blessings that God has allowed us to have over the past year and, as a family with our children and grandchildren, we give thanks on Thanksgiving to Him for His provisions.  Besides that, we also celebrated Christmas this year so we called it “Thanksmas”.  We decorated our house for Christmas and exchanged gifts with our children with Christmas music sofly playing in the background (well actually it was blaring but with six grandchildren…well, you get the picture).  It was wonderful.  Now come Christmas Day, our children can be with their in-laws without fear of having to meet deadlines to get from place to place.  It will be peaceful for all!  I hope that your holidays will be blessed and that you too will have a peace as you celebrate these wonderful days with your loved ones.  Merry Thanksmas to ALL!

Rates are stable-after they rose and then they fell.

November 20th, 2018
Rates stabilized this week after rising the week before, but rates were falling as the survey period ended. For the week ending November 15, Freddie Mac announced that 30-year fixed rates remained at 4.94%. The average for 15-year loans rose to 4.36% and the average for five-year adjustables was stable at 4.14%. A year ago, 30-year fixed rates averaged 3.95%, close to one percent lower than today. Attributed to Sam Khater, Chief Economist, Freddie Mac — “Despite recent market volatility, rates on home loans remained steady this week. The stability in rates reflects the moderation in inflationary pressures in the economy due to lower oil prices and subdued wage growth. On the margin, lower energy costs are a positive for the home sales market, particularly for lower-middle income suburban buyers who spend proportionately more income on transportation costs.” Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.
Current Indices for Adjustable Rate Mortgages

Updated November 16, 2018

What happens when rates rise to 7 year high?

November 13th, 2018

Mortgage rates rose significantly for the week ending Nov. 8, with the 30-year fixed mortgage rate surging to a seven-year high, according to the Primary Mortgage Market Survey released by Freddie Mac.  When there is good news for the economy, there is typically bad news for mortgage interest rates.   We have seen a great improvement in economical growth since the Trump administration took over a mere 22 months ago.

“The economy continued to show resilience as strong business activity and growth in employment drove the 30-year fixed mortgage rate to a seven-year high of 4.94% – up 11 basis points from last week,” Freddie Mac Chief Economist Sam Khater said. “Higher mortgage rates have led to a slowdown in national home price growth, but the price deceleration has been primarily concentrated in affluent coastal markets such as California and the state of Washington. The more affordable interior markets – which have not yet experienced a slowdown home price growth – may see price growth start to moderate and affordability squeezed if mortgage rates continue to march higher.”

Rates for the 30-year fixed-rate mortgage averaged 4.94%, with an average 0.5 point, up from the 4.83% average in the previous period. The average rate also increased year-over-year from a 3.9% average.

The average rate for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) increased to 4.14%, with an average 0.3 point, from 4.04%. The 5-year ARM averaged 3.22% in the same period in 2017.

ABBA First Mortgage would like to request that new clients give us a chance to earn your business and your trust as we find the lowest rate and terms available for your needs.  Call us at 910-332-0650 and prepare to be pleasantly surprised!