What you need to know before you refinance your Raleigh home…or Cary Home or really any home at all.

What you need to know before you refinance your Raleigh home…or Cary Home or really any home at all.

Buy a home in Raleigh … there is no reason to rent in Raleigh

Buy a home in Raleigh … there is no reason to rent in Raleigh

”What Can I Buy for $1800 a Month”…this was asked today to me & here is a “RENT vs OWN” report that compares the terrific savings my Raleigh Home Buyer can get by choosing to purchase a home vs renting for a payment of $1800 a month. In this scenario a buyer is able to purchase a $300k home with only 5% down, using conventional financing with NO monthly mortgage insurance for a little more than $1700 a month! After 10 years my Raleigh Home Buyer has a “Net Worth” of over $134K due to principle paid, appreciation and tax benefits that come with home ownership, compared to the renter who has nothing to show from all the rent paid!

Raleigh Home Loan Rates & Cary Mortgage Rates are very low & NOW IS THE BEST TIME TO BUY — just let me know how we can help.

The Weekly Kevin Martini – an improving job market…what does that mean for Raleigh Mortgage Rates?

The Weekly Kevin Martini – an improving job market…what does that mean for Raleigh Mortgage Rates?

Can you say improving job market? Initial Jobless Claims have now fallen below 400,000 – this level is associated with an improving job market – for five out of the last six weeks.

Not only was last week’s Initial Jobless Claims reading of 366,000 the lowest level since May of 2008, there was a double dose of good news in the manufacturing sector, as both the Philadelphia Fed Index & the Empire State Index were both well above expectations. Normally, good economic news causes money to move out of Bonds and into Stocks as investors like to take advantage of gains…and this would typically hurt Raleigh Home Loan Rates, as they are tied to Mortgage Bonds.

However, the continued uncertainty out of Europe helped keep Bonds andRaleigh Home Loan Rates on an improving trend, as the US Dollar and US Bonds (including Mortgage Bonds, which Raleigh Mortgage Rates are based on) are benefiting from safe haven buying. Ultimately, Europe needs to provide a large financial backstop for their banks and sovereign debt in order to fix their problems longer-term. Until this happens, I believe uncertainty should benefit the Dollar & our Bonds & keep Raleigh Mortgage Rates relatively low.

One factor that we can’t ignore, though, is inflation. Despite the Fed stating again last week that inflation is moderating, core consumer level inflation has continued to inch higher every month. Also, last week’s Producer Price Index showed that inflation at the wholesale level was slightly higher in November.

Remember, inflation is the nemesis of Bonds and Raleigh Home Loan Rates, because if inflation rises, investors in Bonds demand a higher yield to offset the lost buying power inflation imposes on a fixed payment. And as Raleigh Home Loan Rates are tied to Mortgage Bonds, this would mean Raleigh Home Loan Rates move higher.

The bottom line is that while the uncertainty out of Europe should continue to help Bonds and home loan rates, both inflation and continued good economic reports here in the US could temper these improvements. With Raleigh Home Loan Rates still near historic lows, now remains a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you — just give a call to my SunTrust Mortgage Raleigh Office @ 919.858.0023.

The Bond Markets will be closing early at 2:00 p.m. on Friday for the Christmas holiday, but the week will be busy before then.

• Housing Starts and Building Permits (Tuesday), Existing Home Sales (Wednesday) and New Home Sales (Friday) for November will be reported.
• Weekly Initial Jobless Claims will be delivered on Thursday, and the Markets will be looking to see if the reading remains under 400,000.
• Also on Thursday, we’ll see the Consumer Sentiment Index for December as well as the final reading on Third Quarter Gross Domestic Product (GDP) for 2011. The second reading came in at 2%, down from the first reading of 2.5%.
• Finally, Friday the markets will see reports on Personal Income and Personal Spending along with the inflation indicator Core Personal Consumption Expenditure (PCE). Durable Goods will also be reported.

Finally, the Treasury Department will sell a whopping $99 Billion in 2-, 5- and 7-year Notes on Monday, Tuesday, and Wednesday.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and Raleigh Home Loan Ratesimprove, while strong economic news normally has the opposite result.

Bad Debt vs Good Debt by Kevin Martini with SunTrust Mortgage

Bad Debt vs Good Debt by Kevin Martini with SunTrust Mortgage

Good Debt vs Bad Debt... What's the Difference & how do you Escape the Debt Rat Race If you've ever struggled to keep up with all those darn payments-including the credit card & car payments -- you'll definitely want to tune in to this important video. Check it out… CLICK HERE FOR NEW VIDEO - How to Escape the Debt Rat Race NMLSR# 143962 Tel: (919) 274.3700 Facebook Twitter

Downpayment assistance up to $8,000 in Raleigh for buying your first home!

Downpayment assistance up to $8,000 in Raleigh for buying your first home!

Downpayment assistance up to $8,000 in Raleigh for buying your first home!

Home buyers who need help with the down payment and closing costs may qualify for interest-free, deferred second mortgages up to $8,000. You pay $1,000 from your own funds, and the loan pays up to $8,000 of the balance.

Payment on the principal isn’t due until 30 years from the date of the loan. Payment is due earlier if you sell, transfer, or refinance your home; if your loan goes into default; or if the home ceases to be your principal residence.

To qualify for the $8,000 downpayment assistance, your income and the home’s sales price must fall within our established limits. You must also have a minimum credit score of 650 to qualify for down payment assistance.

Homes built before January 1, 1978 and homes that are tenant-occupied, are not eligible for NCHFA down payment assistance.

Slow & Steady Job Improvement – What does that mean for Raleigh Home Loan Rates

Slow & Steady Job Improvement – What does that mean for Raleigh Home Loan Rates

Last week there wasBIG news on the job news! It appears that labor market is improving at a gradual pace – the headline number for job creations in November came in at 120,000, with 140,000 private jobs offsetting government losses…plus, some upward revisions to the two previous readings added 72,000 more jobs than had been reported.

There is even more good news…Hourly Earnings grew by 0.1% – a number that suggests no threat of wage-based inflation. Remember, inflation is the nemesis of Bonds and Raleigh Home Loan Rates because when inflation rises, investors in Bonds demand a higher yield to offset the lost buying power inflation imposes on a fixed payment & Raleigh Home Loan Ratesare tied to Mortgage Bonds, this would mean Raleigh Mortgage Rates move higher. So the Hourly Earnings number was good news for Bonds andRaleigh Home Loan Rates.

The big Kevin Martini surprise was a rather sharp decline in the unemployment rate to 8.6%, the lowest unemployment rate we’ve since March of 2009.

It is good news that we’re seeing some slow & steady improvement in the labor market…and then pepper in other recent positive economic signals, means we are not near a recession at the moment. But our economic health remains fragile, and any external shock from Europe could easily disrupt the economic improvement we are seeing.

The bottom line is that the uncertainty out of Europe – and the prospect of additional Mortgage Bond buying (QE3) from the Fed – should continue to support Bonds and Raleigh Home Loan Rates as they will benefit from investors looking for a safe haven for their money. However, it is also unlikely that Bonds and Raleigh Mortgage Rates. Inflation, while not yet a problem, is still elevated…and if it continues to creep higher, this will limit any improvement Raleigh Home Loan Rates may see. With Raleigh Mortgage Rates still near historic lows, now remains a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you.

Not a ton of news this week since earnings season is over, Stocks and Bonds will battle over investing dollars and trade off the geo-political headlines out of Europe.

• The ISM Services Index will be reported on Monday. This report gives investors a gauge as to how the service sector is holding up in this economy. Individuals employed in this sector produce services rather than products. Service sector jobs provide a significant number of jobs in the US – including housekeeping, messenger services, tax preparation, nursing and teaching.
• Weekly Initial Jobless Claims will be delivered on Thursday. This week’s report comes after last week’s report showed that claims rose above the 400,000 level for the first time in four weeks.
• Consumer Sentiment will be delivered on Friday to cap off the week.

In addition to that news, here’s something to keep an eye on in the weeks ahead. Stocks may be set for another jump. That’s because of something that’s become known as the “Santa Claus Rally.” The Santa Claus Rally is usually a surge in Stocks in the week between Christmas & New Years.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and Raleigh Home Loan Rates improve, while strong economic news normally has the opposite result.