Financing is a critical part of every transaction.  We always recommend that you obtain financing prior to starting your home search.  This is important for several reasons:

1.  It allows you to start your search knowing what price range will suit you best.
2.  You can make a better decision about which property to purchase because you already
     have information on what your approximate payments will be.
3.  Your offer will be stronger when  you submit it with a letter of pre-approval.

We can help you purchase any of the homes that are available on the market today - no matter which company has them listed.  This includes New construction, Re-sales, HUD homes, Bank owned properties, Foreclosures, Pre-foreclosures, and Short Sales.

However, some homes may not qualify for certain types of financing.  By getting pre-approved you will know what type of financing works best for you and you can save time and energy by focusing on searching only for those types of properties that fit your specific mortgage criteria.

Would you like to know what type of loan you are qualified for?

If so, please use the simple form below.  A loan officer will be in touch with you for a no cost, no obligation consultation with you to assist you in determining the best type of financing to meet your purchasing goals. 

Economic/Mortgage Interest Rate Update

Another week of improvement, albeit slight, was registered for residential fixed rate mortgages. The 30 yr fixed finished the week on Friday at 4.875% with 1 point ( 5.02% APR ). The primary driver for this seems to be the Fed's commitment to purchase mortgage-backed securities. As for the stock market, it finished the week at 8579....down 50 points from the previous Friday. The Dow traded in a range during the week from a low of 8431 on Monday to a high of 9001 on Wednesday. For the 2nd week in a row, it rose briefly to the 9000 level but just couldn't hold it.

Most interesting items of the week:

1.) The consumer price index for November actually dropped by 1.7% while the core price index ( ex food and energy ) was flat for the month; the CPI has risen by just 1.1% over the previous 12 months
2.) New housing starts for November were dismal once again as they posted a 625K seasonally adjusted annual rate....the lowest in the past 50 yrs; in all of 2007, a total of 1.35 million homes were started
3.) The Federal Reserve Open Market Committee held their 8th and final meeting of 2008 and slashed the Fed Funds rate ( the overnight bank-to-bank lending rate ) from a level of 1% to a "target level of between .25% and 0%".
4.) Commercial banks immediately dropped their prime lending rate to 3.25%.....great news for consumers with a Home Equity loan tied to the prime rate!!!
5.) Initial Jobless claims actually dropped for the week by 21,000 to a level of 554,000 while Continuing Jobless claims also saw a small improvement by falling 47,000 claims to a level of 4.38 million
6.) Despite an OPEC decision to reduce production, the price of oil fell further during the week from a high of $50/bbl on Monday to finish the week at $33.87.

The availability of the $7500 tax credit for first time homebuyers that buy and close on a home by June 30th of 2009, coupled with 40 yr low interest rates and terrific housing values should make for an exciting and busy 2009.

Mortgage Interest Rates*
Rates as of Sunday, 21st December, 2008:
                                               Conforming       APR          Payment per$1,000      Jumbo      APR       Payment per$1,000
30 Yr Fixed Conventional         4.875%   5.02%      $5.29           8.25%  8.50%       $7.51
15 Yr Fixed Conventional         4.75%     4.99%      $7.78           6.75%  7.04%       $8.85
30 Yr Fixed FHA                     5.00%     5.65%      $5.37            N/A%   N/A%      $0.00

*Rates are subject to change due to market fluctuations and borrower's eligibility.
The Conforming rates are for a $250K purchase money loan, 80% LTV, and 25 day lock. The Jumbo rates are for a $500K purchase money loan, 80% LTV, and 25 day lock. And each loan type assumes owner-occupancy, escrow for tax/insurance, and a mid credit score of >=740. The FHA rate is based on a $250K purchase money loan ( subject to FHA county limits ranging from $271K to $625.5K ) and is for a 96.50% LTV, 25 day lock and mid credit score of >=620.

Courtesy of:

Michael W. Gleason
Senior Mortgage Banker
Pinnacle Mortgage Group, Inc.
Phone: (877)716-9006 883
Fax: (720)975-1172
mgleason@pinnacle-mortgage.com

Helping People in search of their American Dream

                                            AmeriDream
                                   Down Payment Assistance Program



Since 1999, AmeriDream, Inc. a 501(c) (3) nonprofit, has been the Gold Standard for down payment gift programs, and is the program by which all other gift programs are matched.  AmeriDream has helped over 350,000 buyers and sellers purchase and sell homes; many for the first time.  Every month AmeriDream helps make the dream of homeownership a reality for thousands of individuals and families.  AmeriDream has provided more than $400 million in down payment gifts to homebuyers nationwide, which adds up to over $14 billion in home sales.  In addition homeowners have gained hundreds of thousands of dollars in home equity.

The AmeriDream Downpayment Gift Program
AmeriDream understands that some borrowers have achieved good credit scores by making timely rent or mortgage payments, but have been unable to save the money needed for a down payment on their dream house.  The AmeriDream Downpayment Gift Program provides gift funds to be used for the down payment or closing costs.  Borrowers who qualify for a loan that allows gift funds---and who purchase a home enrolled in the AmeriDream program--never repay their AmeriDream gift ... it is truly a gift!

General Program Guidelines

Gift funds up to 10% of the contract sales price.
Typical gifts range from 3-6% and can be applied towards downpayment, closing costs, and other allowable costs.

Seller participation required.
The service fee is paid at settlement.  The service fee is not tax deductible as a charitable contribution.

Gift means gift.
There is no lien, silent second, or second mortgage placed on the property to repay the gift.

No income, asset or geographic restrictions.
The buyer does not have to be a first-time homebuyer and can receive the gift funds as long as the property and the borrower qualify for a mortgage.  New or resale homes are eligible.  The buyer is required to occupy the property.

No gift funds approval required.
If the borrower qualifies for a loan that accepts gifts for down payment (e.g. FHA), and the seller agrees to participate in the program, the borrower is approved to receive gift funds.

Homebuyer education recommended.
AmeriDream provides its online homebuying course free of charge.

24-Hour Turnaround for Funding Available.

OPPORTUNITY . . . . INDEPENDENCE . . . .

AmeriDream
200 Professional Drive, 4th Floor
Gaithersburg, MD 20879