Economic/Market Commentary (7/2008):

Housing Bill Helps Mortgage Market

A comprehensive Housing Bill was agreed upon by the House, Senate and President.  The announcement was successful in increasing confidence in Fannie Mae and Freddie Mac which resulted in modestly lower mortgage rates.

Highlights of the Housing Bill include:

1. Providing support for Fannie and Freddie Mac
2. Allows the FHA to insure up to $300 Billion loans targeted to troubled homeowners
3. Adds tax credits for First Time Home Buyers which are basically 15 year interest free loans up to $7500
4. Provides funds for more low income housing

Industry News

According to publications, Fannie Mae, Freddie Mach and FHA accounted for 90% of all US home mortgages in the second quarter of 2008.

June existing home sales fell slightly along with an increase in the inventory levels of unsold homes.  In contrast, new home sales increased in June.

The chief economist of the National Association of Realtors believes the passing of the Housing Bill will play a major role in helping the housing market to rebound.

Oil prices dropped below $124/barrel down from a record high of $147/barrel earlier this month.  Thus easing inflation pressures a modest amount

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RESIDENTIAL LOT LOAN PROGRAM 

Purchase or Refinance of lot for future Primary Residence and Vacation Home

If you are seeking a Lot Loan in Texas, You need to contact our office to explore your options.  We work with several different underwriters with several different financing options.

MSMC offers a variety of residential lot loan programs to meet your specific needs.  Lot Loan Rates vary by the amount of down payment, length of term and the individual's credit and income qualifications.

CONSTRUCTION and PERMANENT MORTGAGE LOANS

When you are ready to build on your lot, MSMC can arrange either a Construction Loan or a "One Time Close" Loan for the construction of your new home.

The One Time Close loan program gives you an approval for both the construction and permanent financing at one time.  It also helps to reduce your transaction costs by having only one closing. 

Other benefits of the One Time Close construction - permanent financing program include:

- lower fees

- interest rate cap on the permanent loan

- construction periods of 6, 9, 12 and 18 months available

- many programs offer a float down feature for the permanent rate so when the home is finished if rates are lower you can benefit