Today we are going to discuss two common mortgage loan products, and the pros and cons of both: FHA versus Conventional Loans.
Many people are familiar with the 20% down, good credit 30 year fixed conventional loan scenario. FHA loans are designed for people who have difficulty qualifying for a conventional loan to buy a house.
FHA Loans offer down payments as low as 3.5% and are more lenient on credit scores and past financial issues. Borrowers can qualify for FHA loans with as low as 580 credit scores.
One of the downsides of FHA loans are mortgage insurance requirements, if you put down less than 10% you will be required to pay monthly insurance for the duration of the loan, as well paying Upfront Mortgage Insurance Premium.
The best choice for you? Give us a call or apply online and we will analysis what programs suits your needs 😊

This week we saw the benchmark 30-year fixed rate mortgage fall below 3% again according to Freddie Mac. While 15-year fixed-rate are down to 2.27%. This opens opportunities for refinancing and rate locks for many borrowers.
Sam Khater the chief economist at Freddie Mac noted that this creates a lot of opportunity for borrowers to refinance and increase monthly cash flow, with nearly $2 trillion in conforming mortgages able to refinance and reduce their interest rate by at least half a percent. He said last year homeowners who refinanced their 30-year fixed-rate mortgages saved more than $2800 annually.

We’ve seen housing prices rising throughout the country so you may ask is buying still better than renting? According to a recent study from researchers at Florida Atlantic University and Florida International University, it is still better to buy than rent in most areas.

The study looked at the top 23 metropolitan markets and analyzed if buyers bought a house and built equity or rented and reinvested the remaining income. Overall they found it was better to buy with savings coming from today’s still low interest rates, which lowered home owner costs even with the rise in housing prices. Of course all real estate is local so while the overall message of buying being the better strategy, results varied region to region.

There are a few primary factors in getting qualified for a loan, today we’ll talk about one, that you might be able to easily update – the credit score. Here are a few tips to make sure your score is accurate and possibly improve it. Before getting started you’ll obviously need to know your credit score and you can order a free report from one of the big 3 or get a merged credit report.
1. Avoid late and missed payments – this is a big one. If you have trouble keeping track and paying bills consider setting up automatic payments because late payments can be an easily avoidable ding on your score.
2. Make Sure Balances aren’t too high. If you are carrying balances of more than 30% of your limit, try paying balances down. If you have high balances and are getting a stimulus check soon, consider using it to pay down your balances.
3. Not too much – Not too little. If you have too many new accounts or applications for credit this can be a point docker. On the flip side if you don’t have enough types of credit open it can hurt your score. This doesn’t apply to most people but if you only have a credit card consider getting a gas or retail card as well.
And remember to check you credit report for inaccuracies – they happen and are correctable!

Forget earlier this year when we saw new home sales actually drop. New home sales for March went up… a lot, up more than 20% in March compared to February, according to data provided by HUD. In fact it wasn’t just a monthly increase but March saw the strongest new home sales in over 14 years! Not since September 2006 have new home sales been at a faster clip.

A combination of low interest rates and high demand look to fuel new home growth for the foreseeable future. The biggest obstacle to new home construction now is a surge in lumber prices which is adding on over $35,000 to the cost of average new single family home according to the National Association of Home Builders.

Overall new home sales growth is up in most of the nation lead by the Midwest and South are up over 50%.

The housing market has extremely tight inventory and as a result there are often multiple bids on a home. If you find yourself competing with multiple bidders, here are some tips to come out on top and win a bidding war.
Preapproval Letter
Have a preapproval letter. A preapproval letter shows you are serious and there won’t be trouble getting a mortgage. Without this other bidders will be in a much stronger position.
Make A Higher Offer
Before doing this, make sure you stay within your budget, but a higher offer is (as common sense dictates) often a key to a winning bid. Your real estate agent can be helpful here to get an idea of how many bids are coming in as well as current market prices in the area.
Escalate
A really good strategy is to add an escalation clause. This helps you avoid overbidding, you can say you will outbid competing offers by a certain amount (for example $5,000) up to a set maximum price.
Write A Letter
A personal letter to the seller about why you love the property and perhaps why you can’t bid higher can be effective. If you explain what you love about the property and give some background on why you can’t bid higher it can leave a great impression and of course it doesn’t cost you anything to write a letter!
Backup Offer
If your bid does not get accepted, then its normally time to keep looking, however you can try to make a backup offer if there is a kick-out clause and have your realtor stay in touch to see if there are issues with the accepted buyers offer.

At Primary Residential Mortgage, Inc. we want you to get the most out of your home. Whether you’re preparing to sell, or just want a nice view when you come home from work each day, your home’s curb appeal can have a huge impact. These simple upgrades can give your front yard the finishing touches it needs.Greenery and SceneryStay on top of your landscaping. Trimmed trees and a tidy, green lawn make a house feel like a home. Add color with some flowers. A well maintained flowerbed near the front porch or around the base of a tree always looks nice. You could also install planter boxes under windows or place a few potted plants on the porch or patio.Along with keeping your landscaping manicured, remember to remove any clutter from your yard. This includes any trash that may have blown into your yard, but it could also include any abandoned toys or half-finished projects you might get back to someday. Keep those out of sight in your garage or basement.Lighten UpReplace your standard old light fixtures with newer upgraded models to add a splash of class.You can also change out your white light bulbs for bulbs with a yellow or orange tint to give your home’s exterior a warm, inviting feel.Open Up to a New ColorYour upgraded curb appeal will lead people to your front door, so make sure it looks good when they get there. You can do it with a simple coat of paint.Choose a color that will provide contrast. If your house is a dark color, paint your door a light color. If your house has a lighter exterior, go with a richer color on the door. It will look even better if the color you choose also matches another feature of your home’s exterior, like the trim, shutters or garage door.Since you’ll need to take your door handles off to paint anyway, you might as well upgrade your door hardware while you’re at it. New door handles and locks will give your fresh-looking door the finishing touch. Push it over the top by adding a stylish knocker.Hide the HideousAddress any eyesores, like a bulky utility box or window-mounted air conditioner. Without blocking them completely, try to shield them from the street view with wisely placed plants or outdoor furniture. In some cases you can camouflage a dominant feature with a clever paint job. Just keep it subtle or it will draw more attention instead of less.Scrub or Power WashWash your exterior surfaces with soap and water or a pressure washer.Thoroughly clean everything you can:SidingSide walksDoorsWindowsShuttersEavesPatioMailboxNow is literally the time to shine, so wipe down the patio furniture and polish the brass fixtures.Do More with the Garage DoorFor many homes the garage door is the largest surface area people see as they approach. It can be your biggest chance to make an impression.Clean your garage door. Repair dents or other damage if possible. If your garage door is faded or dingy, paint it to look shiny and new. Keep garage door colors light. Dark colors can feel overpowering on that much surface area.If you want to splurge, you could add windows or a pergola to your garage door, but those projects are for professionals.Front Porch Final TouchesFinish off by addressing small details that make a big difference. Replace your house numbers so people can easily find your place. Replace or upgrade your mailbox. Lastly, add a bit of life by hanging a birdhouse or birdfeeder near the porch, but away from walkways.When you’re ready to finance your home upgrades or your next home entirely, remember PRMI.

Market Watch – Rates Drop – Housing Red Hot
This week we’ve seen rates drop below 3 percent for the first time in months. Freddie Mac reported the average for 30-year-rate-mortgage was 2.97%. This is the first drop below 3% in months and makes refinancing more attractive. The 15 year rate was nearly 2 and a quarter with Freddie reporting the 15-year fixed-rate average was 2.29%

The housing marketing remains scorching hot. Cities are seeing increased activity now as well. Inventories are at extremely low levels which is pushing prices higher as more buyers are entering the market. With inventory so tight and many buyers entering the market, we recommend you consult use for a free qualification to see how much you home you can finance and get a pre-qualification letter to help you get a hand up in the buying process.

A lot of folks want to invest in real estate as a way to build wealth. Here are some basic starting points if this is something you’ve been thinking about.
There are two main models that people use when investing in residential real estate – fix and flip or using it as a rental property.
Regardless of which one you want to focus on, the old adage of location, location, location still holds.
A property in need of TLC in a good neighborhood or an area that is up and coming are great strategies.
Build a network and actively research – it’s a good idea to be in touch with a few realtors who can alert you of new listings that are coming to market.
You’ll also want to have a clear idea of your goals, budget and commitment. If you’re fixing and flipping – who is going to do the fixing, if its you, how much time do you have to focus on it.
If you’re renting you’ll want to know the market rents and have clear renting guidelines – the old 1% rule is not used as much anymore as it doesn’t apply to many or most markets but with low interest rates you can try something like 0.8% rule.
Whatever your plan, you’ll definitely want to get per-qualified first. Give us a call and see what you can qualify for and we’ll help get you that pre-qual letter!

Curb appeal is real, it matters, and it’s one of the easiest, lowest cost ways to increase the value and sellability of your home. All those expressions about making a first impression fit houses too! So here are a few tips for boosting curb appeal that can be done in a weekend on a budget.
Make an Entrance
Your entrance and front door should be inviting. You can repaint, restain or maybe replace the front door. Also plants and flowers can really help, often two pieces on either side of an entryway will help frame the entrance.
Lighting
Having some lights to frame the house in the evening can really make it pop, so check your garage and porch lights and consider investing in some new ones, there are good solar ones now that go on automatically at night and don’t require wiring.
Numbers Numbers Numbers
If your house numbers are old and hard to read, consider getting some new ones and we advise making them easy to read.
Return the old Mailbox to sender
If your mailbox is old and weathered, a new one can really help.
These are all low cost little steps that make a huge difference!