Market Update

A recent report by the National Association of Realtors (NAR) reveals that existing-home sales were up in December for the third month in a row, pushing unit sales up 1.7 percent for the year compared to 2010. Existing-home sales, which include recently purchased single family, town homes, condominiums, and co-ops, reached 4.26 million units for 2011.

Investors accounted for 21 percent of the existing-home sales market in December, while first-time buyers represented 31 percent of all purchases. The remaining 48 percent were repeat buyers.

Freddie Mac reported another drop in the 30-year, conventional, fixed-rate mortgage, which was hovering in the high 3 to low 4 percent range to close out 2011. Current mortgage interest rates are at historic low levels. Be sure to contact your mortgage planner for today's lowest available rates.

Q: What's the best way to raise a credit score when applying for a mortgage?

A: Your credit score is a composite snapshot of your credit history, and is not likely to raise much in a short period of time. Generally speaking, you want to make sure you pay your bills on time, keep outstanding debt levels to a reasonable amount for each account, and avoid closing accounts you've successfully paid-off and managed. Don't lose hope if you have less than perfect credit, there are still good loan programs out there for responsible borrowers. Contact your mortgage planner today to learn which programs might be right for you and take advantage of today's low interest rates!

When figuring out what you can afford, it is important to factor in the additional costs of home ownership, beyond the mortgage principle and interest. Be sure to budget for hazard insurance, association dues, property taxes, as well as monthly utilities and other expenses unique to the property. It's also smart to review your anticipated tax savings and home equity growth as your investment grows. Ask your mortgage professional to help you budget today to get the most out of your next purchase!