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A Buyer’s Market
Mortgage rates dip, good news for homebuyers
Freddie Mac: Average for 30-year, fixed-rate drops to 6.59 percent
WASHINGTON - Rates on 30-year mortgages sank this week to their lowest point in two months, a dose of good news for people thinking about buying a home.
Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.59 percent. That was down from 6.68 percent last week and was the lowest since early June, when rates stood at 6.53 percent.
The moderation is a piece of welcome news for prospective homebuyers, some of whom also have been faced with a situation of harder-to-get credit. In mid-June, rates on 30-year mortgages had climbed to 6.74 percent, an 11-month high.
Mortgages rates have ebbed as recent stock market turbulence has prompted investors to plow money into bonds, driving down rates on bonds. That, in turn, has pushed down rates on mortgages, which have eased amid signs the economy is growing gradually and hiring has cooled off a bit. The unemployment rate inched up to 4.6 percent in July, a six month high.
Rates on 15-year fixed-rate mortgages, a popular choice for refinancing, also moved lower this week. They dropped to 6.25 percent, from 6.32 percent last week. Rates on one-year adjustable-rate mortgages also fell to 5.65 percent, compared with 5.69 percent last week.
However, rates on five-year adjustable-rate mortgages, rose this week to 6.33 percent, from last week’s average of 6.29 percent.
The mortgage rates do not include add-on fees known as points. Thirty-year and 15-year mortgages each carried a nationwide average fee of 0.4 point. Five-year and one-year ARMs each carried an average fee of 0.5 point.
A year ago, rates on 30-year mortgages stood at 6.55 percent, 15-year mortgages were at 6.20 percent, five-year adjustable-rate mortgages also averaged 6.21 percent and one-year ARMs were at 5.69 percent.
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Step 1 - Enter Search Details
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The Teacher Next Door program was established by the Department of Housing and Urban Development (HUD) to offer single-family houses, townhouses and condominiums for sale to a teacher at a 50 percent discount. The goal through the Good Neighbor Next Door program is to encourage teachers to buy homes in low and moderate-income neighborhoods.
Who can participate?
The Teacher Next Door program is open to any person "employed full-time by a public school, private school, or federal, state, county, or municipal educational agency as a state-certified classroom teacher or administrator in grades K-12." Participants must certify that they are employed by an educational agency that serves the school district/jurisdiction in which the home they are purchasing is located.
A teacher wishing to purchase a home under the Teacher Next Door program must be in good standing with their employer. Your employer must certify that you are a full-time teacher or school administrator. You don't have to be a first-time homebuyer to participate. However, you cannot own any other home at the time you close on your Teacher Next Door home. You must agree to live in the HUD home as your only residence for 3-years after you move into it.
What Are the Benefits for the Teacher?
The selected bidder may purchase the
property
at a 50 percent discount from the list price. For example, if a HUD home is listed for $100,000, an officer can buy it for $50,000. To make a HUD home even more affordable, you may apply for an FHA-insured mortgage with a downpayment of only $100 and you may finance all closing costs.
Qualifying homes
are restricted to specifically designated single family homes, townhomes and condominiums that are located within the
revitalization areas
. Other types of
properties
, such as a duplex or triplex, do not qualify for this program. In addition, the homes must be HUD acquired homes and cannot be other real estate for sale in the area (i.e. VA foreclosure homes, resale homes or new construction). HUD sells all qualifying homes as-is. In other words, HUD does not provide any guarantees or warranties.
If the home you want to purchase needs repairs, you may use
FHA's 203(k)
mortgage program. This program allows you to finance both the purchase of the home and the cost of needed repairs. You have the benefit of one loan for both costs and one monthly payment.
Because homes sold through the Teach Next Door program are located in
Revitalization Areas
there may be additional assistance from state or local government sources. Local or state governments want to encourage families and businesses to move into
How do I participate?
Teacher Next Door property is listed and sold exclusively over the internet.
Properties
are single-family homes located in
Revitalization Areas
.
Properties
available through the program are marked with a special Teacher Next Door button. Bids are awarded once each week. Your bid must be the amount of the list price. You may submit your bid directly or utilize the services of a real estate broker. Winning bids are randomly selected by computer. The winning bid is posted each week on the web site where you made your bid.
In all cases, HUD requires that you sign a second mortgage and note for the discount amount. No interest or payments are required on this "silent second" provided that you fulfill the three-year occupancy requirement.
year. Should fraud or other serious charges suspected, HUD may file criminal charges against the Officer, ban the Officer from further participation from any HUD, FHA, and other Federal programs, and may face the possibility of serious fines and potential prison time. HUD will conduct "spot checks" during the first three years to insure that the residency requirement is being fulfilled.
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