Real Estate Information Archive

Blog

Displaying blog entries 1-5 of 5

3.25 % Fixed Interest Rates!

by The Pilgrim Team

Interest Rates As Low as 3.25% WOW!!

I did not think this would ever happen, but now it appears that it is reality. PHFA loans are now as low as 3.25% for new Construction and 3.75% for existing Homes for sale in york pa. This is through the Keystone Home Loan Program here in Pennsylvania. The conditions and requirrements are listed below and are provided by PHFA.

 

Now is definetly the time to buy, DON'T DELAY it could cost you thousands of dollars! Call or email us at Pilgrim Team for more details and property that would qualify.

You may be eligible for a Keystone Home Loan if you meet the following six conditions:

  1. You are not a first-time homebuyer, but you plan to buy a home in a Targeted county or area or you are a discharged veteran of the United States Armed Forces. Target counties are indicated by a "T" in the listing of Purchase Price and Income Limits. Please note that some Non-Target counties have targeted neighborhoods within them. Those areas are listed by county and census tract starting on page three of the purchase price and the income limits above. To determine the census tract of a specific property, visit www.ffiec.gov, and select 'Geocoding/Mapping System'.
    OR
    You and all other adults who intend to live in the home within 12 months from closing are first-time homebuyers. This is defined as someone who has not owned (had Title to) their principal residence during the previous three years.
  2. The gross annual household income for all adults that intend to occupy the home within one year from loan closing does not exceed the Keystone Home Loan Program income limit. All sources of income must be included, except for income received by persons under age 18 and income received by dependants enrolled in a full-time undergraduate program.
  3. The purchase price of your prospective home does not exceed the Keystone Home Loan Program purchase price limit. This includes all costs for a complete home. It is also known as the total acquisition cost. The appraised value of land owned outright for more than two years does not need to be included.
  4. You have an acceptable credit history and the ability to make monthly payments on the home you expect to buy. Generally, you should plan to use no more than 30 percent of your income for your monthly Home Financing payment. A participating lender or PHFA network counseling agency can help you determine how much of a home you can afford, as well as any credit issues you may need to work on.
  5. You have sufficient funds to pay standard Home Financing application and closing fees. Check with a PHFA participating lender to determine the specific costs. These would commonly include such things as credit reports, appraisals, title fees, etc. Buyers who qualify for a PHFA home loan may be able to receive a 25 percent discount on their title insurance, upon request. This could be a savings of hundreds of dollars, depending on your loan amount. So, be sure to ask the lender to request the discount, if applicable. The discount does not apply to loan amounts greater than $200,000 or to the Approved Attorney Procedure.
  6. You have sufficient funds for a downpayment on your prospective home. Borrowers who have a downpayment of less than 20 percent of the home’s purchase price or appraised value are required to obtain Home Financing insurance to protect the lender and PHFA in the event that the mortgage becomes delinquent (you fall behind on your payments). The amount of the downpayment differs according to the loan type as listed below.

PHFA Appendix A Seller’s Guide Page 1 of 5 July 2010

 

KEYSTONE HOME LOAN PROGRAM

PENNSYLVANIA HOUSING FINANCE AGENCY

MAXIMUM PURCHASE PRICE AND INCOME LIMITS * By Region and County (Target Areas indicated by "T")

Maximum Purchase Price

Income Limit

County

Purchase Price Limit

1 & 2 Member Households

3 or more Member Households

Region 1

Bucks

$ 378,000

$ 93,900

$ 109,600

Chester

378,000

93,900

109,600

Delaware

378,000

93,900

109,600

Montgomery

378,000

93,900

109,600

Philadelphia (T)

417,000

93,900

109,600

Region 2

Berks

$270,000

$75,900

$ 87,100

Bradford (T)

298,000

77,000

89,800

Carbon

362,000

84,000

98,000

Lackawanna (T)

298,000

77,000

89,800

Lehigh

362,000

84,000

98,000

Luzerne (T)

298,000

77,000

89,800

Monroe

243,000

66,800

77,400

Northampton

362,000

84,000

98,000

Pike

348,000

76,500

89,300

Schuylkill (T)

298,000

77,000

89,800

Sullivan (T)

298,000

77,000

89,800

Susquehanna (T)

298,000

77,000

89,800

Tioga (T)

298,000

77,000

89,800

Wayne (T)

298,000

77,000

89,800

Wyoming (T)

298,000

77,000

89,800

Region 3

Adams

$ 243,000

$ 67,400

$ 77,200

Cumberland

243,000

71,000

81,600

Dauphin

243,000

71,000

81,600

Franklin

243,000

67,500

77,600

Lancaster

345,000

80,000

93,300

Lebanon

243,000

67,800

77,400

Perry (T)

298,000

85,200

99,400

York

380,000

82,400

96,100

*The maximum purchase price for a two unit property (duplex\doubles) cannot be greater than the lesser of 10% above the current existing single unit limit, or $417,000.

Interest Rates

by The Pilgrim Team

Interest rates are currently at historic lows!

With the low prices and low interest rates now, more than ever, is the time to buy.  Forget the first time buyer 8000 Tax Credit…current buyers can save way more than 8000 over the life of their loan at today’s interest rates…

The principal and interest on a 150,000 loan right now is in the area of only 700 per month!! When it comes to buying ~vs~ renting…it’s a no brainer!

We have a high inventory of Homes for sale in york pa to choose from and low rates, the timing couldn’t be better. Feel free to use our website www.PilgrimTeam.com to search for Homes for sale in york pa.

These low rates won’t last forever so don’t wait.

Fixed Rate Mortgages

by The Pilgrim Team

When looking for financing on your new home purchase, you will be given many different options.  One of the most common is the fixed rate Home Loans, typically with a 15 year or 30 year term.  These traditional mortgages are amortizing, which means that you pay off the entire loan amount by the end of the term of the loan. This type of loan is very common but there are both advantages and drawbacks to these mortgages.  Depending on your financial situation, and the prospects of changes in your financial future, a fixed rate Home Financing may or may not be the best product for you.

Below are some of the pro's and con's of fixed rate Home Loans:

PROS

  • Interest rate on your Home Financing cannot be increased for the life of your loan
  • Monthly payment will remain the same for the life of the loan
  • Loan will be completely paid off by the end of the term

CONS

  • Fixed monthly payment amount may be difficult to make at the start of the loan
  • Large percentage of payment goes to interest payment in first years of the loan
  • Usually has a higher interest rate than a variable rate loan initiated at the same time
  • Interest rate cannot be reduced as in some variable rate programs
  • Maybe harder to qualify for, as higher income may be required

Depending on your financial situation, a fixed rate Home Financing may be the best solution for you.  If you can afford the monthly payment required to obtain the loan, then the fact that your interest rate and monthly payments will stay the same for the life of the loan while give you peace of mind and make monthly budgeting easier.

  /kh

Mortgage Financing Programs

by The Pilgrim Team

I am going to cover different loan programs that are being offered as of now ove rthe next few days. With new RESPA rules loan programs have been changing along with how they are offered.

I first will discuss FHA loans as they are known as of today. This is becoming the most popular loan out there today in the York, PA area. The most important factor is the amount of money down that is required by HUD. As a buyer you will need to have at least 3.5% down of your own in the transaction. The Seller can contribute up to 6% of the sale price towards the Buyers closing costs as of today. That will be changing shortly to 3% in april. You can see why it is one of the most popular loans in the market. You can get into a $200,000 house for as little as $7,000! With the rates hovering around 5% +/- and the Tax Credit of between $6,500 for a current married homeowner or $8,000 for a first time homeowner (not owned a home in the last 3 years) you can practically get in for no money down. Keep in mind there is an up front Home Financing insurance premium that you can add either to the mortgage amount or pay it at time of settlement. There is also a monthly fee that is added to your mortgage payment.

For more information call us at Pilgrim Team. 717-757-5955

Should You Pay Off Your Mortgage?

by The Pilgrim Team

As a homeowner, once you have purchased the perfect home, you dream of the day you make the final Home Financing payment and truly own your home. Paying off your Home Financing if you are able to is a good idea for the obvious reasons, one being that you will save thousands of dollars in interest. If you obtained a 30 year loan you will most likely pay more than twice the purchase price of the home before you actually own it.

Of course paying off your Home Financing gives you the satisfaction of actually owning your home. In addition, the mortgage payment is typically the highest of a household's monthly expense, so not having to worry about that each month can bring peace of mind, especially in the case of a loss of a job or retirement. 

Some financial advisors do however advise that paying off your Home Financing is a bad financial move. Some arguments that the money should be invested as to gain a  higher return in the long run. While this advise might sound good in theory there is no guarantee that a higher return can be achieved. 

Paying off your Home Financing has many benefits, but the question many homeowners ask is "How?", especially in a difficult economy. Below are some strategies you can use to help you get to your payoff goal!

  • Keep an eye on interest rates and, if they fall, consider refinancing. If you can reduce your interest rate, shorten the term of your loan or both, refinancing can be an excellent strategy. 
  • Overpay a fixed amount every month. Even if you can afford to pay an 5-20% of your total payment, it can add up to be 1-2 extra payments a year.
  • Biweekly Home Financing payment plans. By paying half of your monthly mortgage payment every two weeks, you end up making the equivalent of an extra payment every year.  Instead of making 12 monthly payments, you’ll make 52/2 = 26 biweekly payments — the equivalent of 13 monthly payments. This will shave years off your mortgage. Moreover, if you’re paid on a biweekly basis, this approach might match your budgeting process better than monthly payments.

In a difficult economy paying your regular monthly obligations can be difficult, and it can be very challenging to try to make any additional payments. They key is to make an attempt, every little bit counts and gets you closer to your goal!

Displaying blog entries 1-5 of 5

Syndication

Categories

Archives

Share This Page

Contact Information

Photo of The Pilgrim Team Real Estate
The Pilgrim Team
Professional Realty Associates
2002 S Queen St, Suite 3
York PA 17403
Office: 717-757-5955
717-755-2683
Fax: 717-757-2887