Update On The Housing Market

I found some good news about the housing market and its recovery. Housing prices have began to rise in many area across the country. The greater Washington, DC metro area is one of them. And not only are housing prices rising, the number of sales is too.

The federal government says they plan on keeping mortgage rates at about their current level for some time so it is still a great time to buy or refinance. If you are looking to sell your home, or refinance the mortgage, there are some simple things you can do to increase the appraisal amount. Watch this video:

Here is a brief article about the current housing market. It is encouraging after the long period of housing lows we have experienced.

Housing Market Looking Up Across the Country

Many consumers across the country have been struggling with the housing market, either because they want to buy and can’t get a mortgage, or because they want to sell but home values aren’t high enough to cover their underwater mortgages. However, new trends in the market may be helpful to both buyers and sellers.

During the month of August, the number of existing-home sales rose appreciably on both a monthly and year-over-year basis, as did the average price for this type of property, according to new housing-market data from the National Association of Realtors. For buyers, the sales of existing homes — which includes single-family units, condominiums, townhouses and co-ops — climbed 7.8 percent on a seasonally-adjusted basis to 4.82 million, up from July’s 4.47 million. It was also a more significant increase of 9.3 percent from the 4.41 million observed during August 2011.

Meanwhile, the median price for those properties climbed in August as well, rising 9.5 percent year-over-year to $187,400, the report said. It was the sixth consecutive month of annual increases, the first time that has happened since the period between December 2005 and May 2006, prior to the housing bubble’s burst. Further, the increase seen last month was the largest since January 2006, when median prices climbed 10.2 percent.

These trends are encouraging to experts, who believe that there will be continual improvements in the housing market over the next several months at least, the report said. In fact, many believe that the increase in prices and sales could have mutually beneficial effects on each other at least through the end of next year.

“Total sales this year will be 8 to 10 percent above 2011, but some buyers are frustrated with mortgage availability,” said Moe Veissi, president of the NAR and broker-owner of Miami-based Veissi and Associates Inc. “If most of the financially qualified buyers could obtain financing, home sales would be about 10 to 15 percent stronger, and the related economic activity would create several hundred thousand jobs over the period of a year.”

The Federal Reserve Board already has committed to keeping interest rates, particularly on mortgages, at around their current low levels for some time, and as a consequence, that could encourage more people who are thinking about buying to look into how affordable the process might be for them.

See article source here:

This means there is hope on the horizon! When you are ready to purchase your first home, upgrade to a bigger home, or refinance your mortgage, contact the professionals at SLS Mortgage for the latest mortgage programs and the best mortgage rates.



Why Mortgage Refinancing Is Such A Good Idea

In this edition of SLS Mortgage blog, I have found a couple of interesting articles and a video describing the current mortgage and real estate markets. The first article is about how mortgage rates are still extremely affordable even though home prices are rising and sales are up. Read more below:

Mortgage rates down; home prices, sales up
HSH Financial Publishers (blog), on Wed, 19 Sep 2012 08:27:52 -0700

“The Federal Reserve has aimed their efforts squarely at the mortgage market,” said Keith Gumbinger, vice president of “They will be buying up to $40 billion of Mortgage-Backed Securities monthly in an effort to drive mortgage rates lower.

This video explains how taking advantage of these low rates by refinancing an existing mortgage can save a homeowner tens of thousands of dollars over the lifetime of their higher interest mortgages. This savings could be what the economy needs to get consumer spending up and therefore, stimulating the economy. Watch it here:

And finally, the following article describes how the federal government can help keep these mortgage rates low by encouraging homeowners to refinance. Find out how here:

Congress Could Help ‘Quantitative Easing’ Reach Main Street
Center For American Progress, on Wed, 19 Sep 2012 09:00:14 -0700

Most U.S. households are not in the market for a new home, so the hope is they will access low interest rates by refinancing their mortgages. Yet mortgage rates have been well below historic norms for more than a year, and most eligible homeowners who

I hope that these will shed some light on why it is so important to consider refinancing right now. Mortgage rates continue to be at historic lows but they won’t stay that way forever. When you decide that refinancing is right for you, contact us at SLS Mortgage to get the best rate available today.


Home Mortgage Reston VA | (703) 594-9229 | SLS Mortgage

Below are some great tips you should adhere to when searching for a home mortgage in Reston VA.

To begin the process of attaining your home mortgage loan, contact one of our home loan specialists at SLS Mortgage. We anticipate helping you obtain your dream house.

SLS Mortgage
(703) 594-9229
(855) 571-8800 Toll Free

Tip #1: Always Shop For Home Mortgage Rates

Don’t blindly accept a Realtor or Builder referral to apply for a Home Mortgage through their preferred lender. Many times they will say, “We work closely with this guy and he gets the job done”. Translation: “We play golf together and he buys the beer”. Remember, the Realtor won’t be paying the bill each month for the next 30 years, you will.

If you apply for a Home Mortgage through a preferred lender without shopping, you will pay hundreds or even thousands of dollars in additional costs.

Tip #2: Call For Home Mortgage Quotes After 11:00 a.m. Eastern Time

Mortgage Rates change each day and sometimes midday. The previous day’s rates typically expire by 8:30 a.m. the next morning. Generally, Home Mortgage Rates are published each day by 11:00 a.m. Eastern time. This varies from lender to lender. To make sure you are getting Home Mortgage Rates from the current day and not a mixture of rates from the previous day from some lenders and the current rates from other lenders, always do your rate shopping after 11:00 a.m. Eastern time.

Get all your quotes after 11:00 a.m. Eastern time.

Sometimes Home Mortgage Rates change midday due to a volatile bond market. When this happens, some Home Mortgage Lenders will adjust the Discount Points for their rates in accordance with the new bond prices and publish new Home Mortgage Rates for that day. Other Lenders may continue to honor their morning rates.

Tip#3: Always Tell The Mortgage Loan Officer You Are Prepared To Apply For A Loan NOW

How will you compare quotes if you don’t know which quotes are real and which are part of a bait and switch plan? The only way to ensure getting real quotes is to box in the Home Mortgage Loan Officers by making them think you are ready to Lock-In a Home Mortgage Rate immediately.

Tip#4: Ask For The Total Points And The Total Fees

When you call a Mortgage Lender, ask for the “Total Points” (Discount Points, Loan Origination Fee, Broker Points) for each Home Mortgage Rate. Some lenders will only quote the Discount Points and deliberately leave out the Loan Origination Fee. You won’t find out about the 1.00 Point Loan Origination Fee until you apply for the Home Mortgage. By that time, the Loan Officer figures you will just accept it because he’s got your application and pulled your credit report. In addition, Mortgage Brokers often neglect to mention their Broker Fee.

Some lenders do not charge a Loan Origination Fee.

When you are quoted the Total Points, specifically ask them if there is an additional Loan Origination Fee or Broker Fee being charged. You truly have to nail this down when you talk to a Home Mortgage Loan Officer.

Tip#5: Always Confirm The Rate Lock Period When Asking For A Rate Quote

If you are buying a home and you need 60 days to close, make sure you specifically request Mortgage Rate quotes with a 60 Day Lock period. Some Home Mortgage Loan Officers will quote rates with 15 Day or 30 Day Lock periods because the Discount Points for shorter lock periods are less than rate locks for longer periods. Quoting a Home Mortgage Rate with a 15 Day lock period obviously gives that Loan Officer an unfair edge. It is also a waste of your time because the quote isn’t real if you can’t settle on your loan within 15 days. Always specify a 60 Day Lock-In if you are buying a home. Ask for 45 Days if you are refinancing, but you may be able to get it done within 30 days if you are very diligent and call your Home Mortgage Loan Officer twice a week for a status of your application.

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Mortgage News For September 2012

It’s been a while since we added a blog post. We have been extra busy this summer and let our posting slip! We wanted to jump back in the game, though, so today we bring you some current news about the state of mortgages and the real estate market. Not much commentary here, just wanted to begin our regular posting again by pointing out some current news.

Mortgage Rates Move Lower | RISMedia

Mortgage rates were mostly lower for a second straight week, with the benchmark 30-year fixed mortgage inching down to 3.79 percent, according to’s.

Home Loans | Mortgage Bankers | Refinance Applications

September brings mortgage activity resurgence. September 12, 2012 08:30AM. As the calendar turned to September, mortgage activity also turned a page following a dismal August. Mortgage applications increased 11.1 percent for the week

We hope that these resources will bring you up to speed on the status of the real estate and mortgage market presently. If you have any questions about specific mortgage loans, mortgage rates, or home loan products, please feel free to contact us. It’s good to be back in action!


Tree Service Fredericksburg VA

Trees are an important part of any landscape — they protect your home from the elements, contribute to clean air, and even provide hours of childhood entertainment. In many cases, just the mere presence of certain trees on your property can actually increase the resale value of your home.

Removing dead, rotten, or otherwise damaged tree branches and trees is usually recommended in order to avoid injury or property damage. Instead of attempting a do-it-yourself tree removal, you should consider hiring experienced Tree Service Fredericksburg VA professionals.


Home Loans Dunn Loring VA

No matter which way you look at it, homes are one of life’s biggest expenses. Buying a home typically requires hundreds of thousands of dollars. Average home buyers are usually unable to simply plunk down cash or write a check, even for modestly priced homes. A home loan, however, makes buying a home possible.


When A 30 Year Mortgage Is Better Than 15

Sometimes it makes more sense to get a 30 year mortgage over a 15 year.  There are many benefits of shortening the loan term to 15 years, but you have to consider all factors when deciding which mortgage term is best for you.

Below are some great tips to help you determine which loan term is best for your current financial situation.

With interest rates as low as they are, a lot of borrowers are being tempted by 15-year fixed-rate mortgages. But for many, a 30-year loan may still be the best option.

To be sure, interest rates on 15-year fixed-rate mortgages are astonishingly low right now — averaging 2.89 percent, according to Freddie Mac. That can mean some major savings on interest, as well as paying off your mortgage faster. But there are other factors to consider as well.

15 years means higher payments

The downside of a 15-year mortgage is that your monthly payments will be a lot higher than on a 30-year loan. For a $200,000 loan at Freddie Mac’s posted rate of 2.89 percent, monthly payments on a 15-year fixed-rate mortgage would be $1370.91 — and that’s before including property taxes and homeowner’s insurance.

By contrast, the payment on a 30-year fixed-rate mortgage at the current Freddie Mac average rate of 3.62 percent would be $911.54 — nearly $460 less than the payment on a 15-year loan.

The potential problem with a 15-year mortgage is the classic one of “you can go broke saving money.” Yes, you can save a lot of money on interest with a 15-year mortgage — in the example above, over the life of the loan, you’d pay only about $47,000 in interest on the 15-year mortgage, versus $128,000 in interest payments on the 30-year mortgage. But how will those higher payments affect your financial picture?

Consider other financial needs

In the example above, note that payments on the 15-year mortgage are half again as much as on the 30-year loan. That’s a pretty big bite out of anyone’s budget. What else could you be doing with that money? Saving for retirement? For your children’s education? How about a reserve fund for unexpected expenses, like a medical emergency?

The big problem with a 15-year mortgage is that it leaves you with less financial flexibility than a 30-year loan. You might be able to manage the mortgage payments most of the time, but what if you hit a tight spot? You can’t miss a mortgage payment without financial penalties and damage to your credit score, and getting caught up again can be harder than you think, especially if you were already stretched to cover your monthly payments in the first place.

In addition, the savings may not be as much as you expect. Remember, mortgage interest is tax-deductible for most borrowers, which effectively reduces the savings you get from a 15-year loan.

Paying off your mortgage faster

The situation where refinancing into a 15-year mortgage can be most attractive is when refinancing an existing mortgage. In that situation, you’ve already been paying on your mortgage for a number of years, so refinancing into a 15-year loan may not shorten the time remaining on your loan that much, so it may seem like you can squeeze your remaining loan into the new time frame.

Keep in mind though, that most of your payments go to interest during the early years of a 30-year mortgage, so you may not have made as much progress in paying down your principle as you think, even if you’ve had the loan for 8-10 years.

If you want to pay down your mortgage faster, one option to consider is to refinance into another 30-year mortgage, then make payments equal to what you would need to pay it off in 15 years. This lets you pay off your mortgage more quickly, while maintaining the flexibility to make a smaller payment now and then should the need arise.

30-year rates are also cheap

Over the course of the loan, you won’t pay a lot more using this approach than you would refinancing into a 15-year mortgage. Remember, even though 30-year mortgage rates are presently running about three-quarters of a percentage point higher than 15-year rates, they’re still extremely low by historic standards, and cheap.

Typically, the difference between the two approaches would be about an additional four monthly mortgage payments over 15 years — fairly cheap, considering the additional financial freedom you gain.

Good money after bad?

One of the undeniable advantages of a 15-year mortgage is that it allows you to pay down your mortgage faster, allowing you to build equity more quickly and brings closer the day you own your home free and clear. If you’re refinancing through HARP (the federal Home Affordable Refinance Program) because you’re in negative equity, it lets you get back to positive equity more quickly. The question is, do you want to do this?

If you’re underwater on your mortgage, many financial advisors would question the wisdom of accelerating your payments on an asset that is worth less than the balance owed. Even if you’re not underwater, you should consider whether boosting your payments on a depreciated asset is the best use of your money.

This is a key reason why refinancing back into a 30-year mortgage, even if you’ve already been paying on the original loan for 10 years or so, can make sense. You’re reducing your monthly payments and limiting the additional money you’re committing to an asset that has declined in value. If the housing market rebounds and home prices rise again, you’ll benefit from the increased equity. Meanwhile, you’re limiting the amount of good money you’re throwing after bad, while increasing the amount of money available for other uses.

Examine your own situation

This isn’t meant to be a hard-and-fast guide to whether or not any one person should opt for a 30-year mortgage over a 15-year one, but only to point out some of the issues involved and the questions borrowers should consider.

For many borrowers, a 15-year mortgage may be the best choice given their finances and personal situation. For others, buying a home with or refinancing back into a 30-year mortgage may be the more sensible option. But you have to look at your own financial situation, the value of your own home and your other financial needs before you can decide which is the best choice for you.

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When you are ready to decide which type of loan is going to suit your situation best, contact one of our mortgage specialists at SLS Mortgage of Charlottesville for a free mortgage consultation. We can go over your current situation and evaluate your goals so that we can match you with the perfect loan product. SLS Mortgage is here to help. Call (434) 260-7793 today