Hilton Head Real Estate and Gated Communities


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Posts Tagged ‘Hilton Head lenders’

Hilton Head Home Loans Have Historic Low Interest Rates

Did you know that a low interest rate can save you as much or more than a low purchase price? With a 30-year fixed rate, each quarter per cent reduction in interest rate per $100,000 makes a difference of about $15/mo in your payment. For a loan of $300,000 this is a savings of about $135/mo or $1,620/year to the borrower. The longer you own the property, the more the savings can add up and give you savings that can exceed the original savings of a low purchase price! Read the rest of this entry »

Lower Hilton Head Jumbo Mortgage Rates and No PMI

Lower Hilton Head Jumbo Rates Will Help Sales

More money and better terms for Hilton Head Island luxury real estate lending is one of the recovery signs that we have been waiting for. In just the last week, several Hilton Head lenders have advertised jumbo rates @ 6.375%, the first significant drop in jumbo rates in more than a year, down from 6.875%. This reduces a $600,000 loan payment by about $200 per month.

Expensive properties are often financed with loans greater than $417,000, called non-conforming or ‘jumbo’ loans. These loans are not purchased by Fannie Mae and did not benefit from the government’s stimulus package. Jumbos are financed by independent investors like insurance companies, pension funds, hedge funds or some large banks. The luxury jumbo market has been waiting a long time for the difference in interest rates of conventional and jumbo mortgages to narrow. Jumbo loans have been about two percentage points higher, at about 6.875% -now 6.375%.

Loans under $417,000 are called conventional loans and they are offered by Hilton Head lenders today at 4.875% with no points, 30-years, fixed.

No PMI on Hilton Head Real Estate Jumbo Loans

More good news for luxury buyers is that at least one Hilton Head jumbo lender does not require private mortgage insurance. This saves the borrower about $85 per $100,000 borrowed or about $510 per month on a $600,000 mortgage.

Lower interest rates and and no mortgage insurance combine for a savings of about $710 per month for a $600,000 loan. Many Hilton Head Island luxury properties have higher mortgages for even greater potential savings for the buyer/borrower.

Conventional borrowers have had lower interest rates for some time and now luxury buyers have lower rates too. To discuss the real estate that you want to buy and the lenders who can finance your purchase, please call or email the Hilton Head Gated Communities Specialist®today!

Richard Kadesch, Owner and Broker-in-Charge The Gated Community Specialist ® Go Gated Realty ® Hilton Head Island, South Carolina Rich@gogated.com www.GoGated.com 1-800-333-5025 Read Some of My Clients’ Success Stories

Do You Want Change? Fannie Mae is Changing Hilton Head Home Loans!

Hilton Head home loans follow Fannie Mae guidelines and the guildelines of private mortgage insurance companies. These guidelines are being revised almost every week because of increased foreclosure rates and late mortgage payments. Moreover, new regulations in the recently passed Housing and Recovery Act of 2008 and new restrictions by the Federal Reserve are forcing Hilton Head mortgage lenders to become more stringent in their underwriting process going forward.

Hilton Head Lenders Now Require

Higher credit scores and bigger down payments.
Documentation of income and ability to repay the loan.
Heavy limitations on easy to get stated income or “no doc” loans. Self employed borrowers are reluctant historically to document all of their income and are cerrtain to be affected by this requirement.

More Changes Are Coming

Beginning in October of 2009, escrow accounts for taxes and insurance will be required on all mortgage loans.
Loans with negative amortization are being eliminated..
Loans with pre-payment penalties will be restricted.

Your Advantage Now

You may still buy a Hilton Head area property with 5% down. In the future at least 10% down may be required. Regardless, this is still affordable for most borrowers.
Mortgage rates are predicted to trend upward long term. In the near future, you will get a better rate than if you wait.

Prequalify Again and Be Current Some borrowers are shopping for Hilton Head homes wtih outdated pre-qualification letters. It is important that when you shop for a home that your pre-qualification is accurate by current guidelines. Please take a few minutes with your lender before you go home shopping to make sure that your pre-qualification is current. Those few minutes may save you and your real estate agent time and help you to avoid any unwelcome surprises with your lender when you buy.

We have excellent loan programs and plenty of money to lend to qualified buyers. There’s no obligation when you contact me to discuss your needs and our programs so use my direct phone number, below at any time. It’s a good time for bargains. I hope that we can finance one for you soon!

Patrick S. Child, Vice President

Residential Lending, Wachovia Mortgage

Hilton Head Island, South Carolina

(843) 686-9342

E-mail: Pat.Child@Wachovia.com

Hilton Head Real Estate Loans and The Buyer's Advantage

Today, some buyers are concerned about getting a loan and that concern may be appropriate. There’s no question that the rules of lending have changed. The jazzy lending products that formerly assisted marginally qualified buyers are no longer available. Still, buyers with credit scores of 680 or better shouldn’t have any trouble getting an attractive loan and Hilton Head lenders are ready to compete for your loan business. If you are a qualified buyer, you will have great opportunities and a competitive advantage in the marketplace. Some reasons why are:

Interest rates are very good today.
You will get the best rates and terms that the banks have to offer.
Tighter lending means fewer qualified buyers to bid against you for the real estate you want.
Today’s market has some low prices and eager sellers ready to take an offer.
Inventories are high and your selection is excellent.

Buyers with lower credit scores should not despair. You can still qualify for most mortgages - but not at the leveraged and easy terms that we saw a few years ago. Qualifying may mean having to put more money down and provide greater documenation. It should be worth it because of the advantages of being a buyer in today’s market.

Sperry Kaler is a local lenderof with Ameris Bank. Here are his comments about what buyers can expect today:

“In general, the state of the mortgage market for ‘non-exotic’ traditional types of loans is good. Funds for residential real estate purchases are still readily available from your local bank (such as Ameris Bank). Interest rates are at historically low levels and almost a three-year low coming off the lowest low that occurred in the summer of 2003 during the refinance boom100% financing is still available but not without documentation, especially for second homes or investment properties. If you are self-employed, full documentation (verifiable income and assets) and even stated income loans are available. The down payment that is required is determined by type of loan and the type of occupancy. Conventional loans are $417,000 or less and jumbo loans are more than $417,000. The three types of occupancy are primary residences, second homes and investment properties, each with increasingly more down payment required. The following examples are illustrative of today’s market. They assume credit scores above 680-700 and full documentation: Primary Residence Purchase – 5% down Second Home Purchase – 5% down Investment Property Purchase- 10% down Factors that could raise down payment requirements by 5-20% could be loans that are stated rather than verified, income and asset loans, ARMs, interest-only loans and loans for condos rather than single family residences. Check with your mortgage professional for details".

If you would like to discuss loan products and prequalify at no obligation withAmeris Bank, contact Sperry Kaler at sperry.kaler @amerisbank.com or call him at 843-301-1325.

Richard Kadesch, Owner and Broker-in-Charge The Gated Community Specialist ® Go Gated Realty ® Hilton Head Island, South Carolina Rich@rkrealty.com www.GoGated.com 1-800-333-5025 Read Some of My Clients’ Success Stories