Blog Archives

Kentucky and Indiana Mortgage Rates for October 30, 2012

Below you can see the mortgage rates from October 30, 2012.
Please click the image below to view additional mortgage rates.

These rates are provided to you by HomeServices Lending. Semonin Realtors® is not a mortgage lender; please contact HomeServices Lending directly to learn more about its mortgage products and your eligibility for such products.

Mortgage Rates for August 14, 2012

Below you can see the mortgage rates from August 14, 2012.  
Please click the image below to view additional mortgage rates.

These rates are provided to you by HomeServices Lending.  Semonin Realtors® is not a mortgage lender; please contact HomeServices Lending directly to learn more about its mortgage products and your eligibility for such products.

National Headlines and Local Real Estate Markets


Do National Real Estate Headlines Actually Influence Local Markets?

This is a question we are frequently asked. Local real estate professionals know the best information for either buyers or sellers is local market data. However, we must realize that what happens in the national real estate market dramatically impacts regional and local markets. For example:

Are 30 year mortgage interest rates in North Dakota under 4% because of what happened in the their market over the last few years?

Of course not. They benefit from lower rates because of what happened in the national economy (if not the world economy).

Buyers all over the country are concerned about the reports of distressed properties about to come to market and what impact they will have on house values. The truth is only a handful of states will be adversely affected. However, if overall consumer confidence is shaken, every market is impacted. This is why it is important that you work with a real estate professional that understands three things:

  1. What the national headlines are saying and why they are saying it
  2. What effect the issue may or MAY NOT have on your local market
  3. How to simply and effectively explain both of the above to you

Agents who just ignore national headlines are hiding their heads in the sand. Agents who use the headlines as scare tactics to unfairly influence the actions of their customers are engaging in unethical behavior. Agents who take the time to keep abreast of the national real estate issues and are patient in explaining how these issues will impact you in the local market are true professionals.

The first two types of agents could cost you dearly. The last group will maximize the outcome of your real estate transaction – both personally and financially.

Mortgage Rates for June 5, 2012

Below you can see the mortgage rates from June 5, 2012.  
Please click the image below to view additional mortgage rates.

These rates are provided to you by HomeServices Lending.  Semonin Realtors® is not a mortgage lender; please contact HomeServices Lending directly to learn more about its mortgage products and your eligibility for such products.

The Lesson of Megan

Posted by Dean Hartman,

This upcoming weekend, my daughter Megan, the eldest of our four children is graduating from Binghamton University. When these type of life events happen, I like to reflect upon both “How did we get here?” and “What are the best actions I can take to make sure things stay on the right path?” As I thought about it, parallels to people thinking about buying a home popped into my head.

The “How did we get here?” question had me pondering the time before Megan was conceived. There were plenty of reasons NOT to pull the trigger- with economic uncertainty being the leading concern. How would we pay for the increased expenses with less of an income? How would our personal time be compromised? Shouldn’t we wait until we had more in our savings account? If we applied conventional wisdom to our situation, we would have waited; but by not waiting, the benefits we gained were far greater than we ever imagined. Being a parent (especially of a kid like Megan) is the greatest gift anyone can have…and cheating ourselves of that, for even a day, would have been a tragedy. Sure, we sacrificed some vacations or nights out, but the joy of beginning our family (which later added three sons to the mix) gave us such an upgraded life. I can hardly remember the drawbacks and can only celebrate the great memories of laughter, song, and hugs.

So, my advice to people looking to take somewhat of a leap of faith into homeownership (or moving up) is that if you wait for everything to be perfect, you will cheat yourself of the memories you could be starting today. Seriously, what a terrific opportunity to start the new chapter of your future:

  • Incredible Inventory – The amount of available homes to choose from is staggering, but waiting for the “perfect” house is costing you time….the time you will enjoy your home.
  • Amazing Prices – In some parts of the country, prices are back to 2005 levels, some 2003, and some even 2001. What else can you buy for the same price as 7-11 years ago?  Maybe some personal electronic equipment that is outdated today.
  • Awesome Interest Rates – Rates are back to all time lows. What are you waiting for?


Now, I’ll move to the “What are the best actions I can take to make sure things stay on the right path?” question. Megan wants to be a teacher. She will be a great teacher, but jobs on Long Island are tough to find with all the budget cuts and such. So, Megan has decided to continue her education and get her Masters, while working at our office, as she waits for improvements in the job market. She is positioning herself to be better prepared for her future opportunities. Good decision.

As I talk to prospective homebuyers, it’s about being pre-approved.  Having a seasoned mortgage professional review their income, assets and credit to help position them in the best light, so that when they find that special opportunity, they are poised to act on it.

Buying a home, many times, begins with the emotional decision to change one’s life. After deciding to take the plunge, we use numbers and logic (inventory, affordability, and interest rates) to justify the emotion. Add to that, taking the care to prepare by working for a solid pre-approval, and I want to tell everyone…. “Go make your Megan!”

The PRICE Is the Same, But the COST Is Less

There is more and more research coming out showing that it makes great financial sense to purchase a home today . Whether it be rent vs. buy ratios, income-to-price ratios or income-to-mortgage payment ratios, purchasing a home right now is a bargain compared to historic norms. Now we want to look at the COST of a home today compared to pre-peak prices.According to the most recent S&P Case Shiller price index, residential real estate values have returned to 2003 1Q PRICEs. That, in itself, says something. However, when you factor in mortgage rates, the case for buying a home today becomes even more compelling.In 2003, 30 year mortgage rates stood at 5.88%. Today, they are 4%. How does that impact the actual COST of a home? On a home purchased for $250,000, here is the difference in monthly cost:


That means you save $285.30 a month, $3,423.60 a year and $102,708 over the life of a 30 year mortgage! You buy the home for the same PRICE but the COST is over $100,000 less.

Bottom Line

This is why so many financial advisors are saying that this may be one of the greatest times in history to purchase a home.

Mortgage Rates for November 15, 2011

Mortgage Rates for November 1, 2011

Will the 30 Year Mortgage Disappear?


The federal government is reconsidering their involvement in the home mortgage process. They plan to still ‘guarantee’ certain mortgages. However, they appear to be redefining what they consider a ‘qualified purchaser’. They are discussing stricter lending guidelines in four different areas:

  1. The type of mortgage
  2. The minimum down payment
  3. The debt ratios of the buyer
  4. The FICO score of the purchaser

Today, we want to look at #1.

It appears that there is at least conversation about eliminating the 30 year fixed rate mortgage which has been a staple in this country’s housing industry for some time. Some in government want to duplicate the mortgage process of other countries. In Canada, for example, they don’t even have 30 year fix rate mortgages available. The vast majority of Canadian home loans have a 25 year payout but the interest rate is renegotiated every five years. If rates go down, you will wind up with a lower rate. If rates go up, you end up paying a higher rate. If you want a fixed rate mortgage for 25 years you pay a rate approximately two percentage points higher than the going rate at the time of your closing.

Would the same happen in this country? Last week, Housing Wire quoted Janis Bowdler, senior policy analyst at theNational Council of La Raza:

“Without some form of Fannie Mae andFreddie Mac, replacements to support these popular loans, many first time borrowers will be shut out.

“Without that guarantee lenders would not offer 30-year fixed-rate mortgages, at least not at rates the average person could afford. Yes, some would be available but not for the average family but for those with a large amount of inherited wealth they can put to a large down payment.”

Why Is This Important?

You probably want to set your housing expense at the lowest number possible for the longest time possible. This may be the appropriate time to lock-in your long term housing expense as three things seem possible, if not likely, in the future:

  • Mortgage rates will increase from current historic lows
  • The 30 year fixed rate mortgage may disappear
  • Rents will return to historic norms of 3% annual increases 

Bottom Line

If you want to purchase a home of your own but are waiting to see where prices will go, consider what you could be giving up while you wait.

Mortgage Rates for September 6, 2011

Check out this week’s average mortgage rates.

Be sure to click here to connect with a qualified Home Mortgage Consultant.

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