Silverton Launches New Website

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Good News in the Mortgage Industry

Spring is in the air, flowers are in bloom and the mortgage market is alive with music...OK, so maybe that's a little optimistic, but aren't we ready for some good news?!  In reality, the mortgage market is improving.  There are loan programs starting to come back to the market, rates are still really darn good and the loan process itself is slowly improving (yes, there is still a lot of paperwork, but since it's tax time, it's usually documents you have handy anyway!).

We thought we would share some of the positive signs we are seeing as well as answer some of the most frequently asked questions we get from our clients and industry partners:

1.  Rent Vs. Own:   There is an old rule of thumb that's been around since the 40's and it's The Rule of 15 that basically states  that if your yearly rent is less than 15 times the sales price of the same house, it's a good time to buy.  If it's more than 15, then it's actually better to rent.  Of course, this doesn't apply to everyone, but it's been a fairly accurate formula for a good 50 to 60 years and has encompassed a number of different housing cycles.  So, where are we here in Atlanta and the south?  Each market and submarket is different of course, but we see most of the markets in the six to nine range, well below the 15 mark. Which means it's a great time to buy!  New York, as a comparison, is usually in the 32 range (San Francisco, 22).  As you begin your housing search, also call the 'for rent' signs.  Get a feel for the market and see how the neighborhood compares to The Rule of 15--if that number is less than 15 and you plan on being there for a few years, think about buying!

2. What down payments options are available:  We have received a number of calls asking if 20% is the minimum down payment these days.  There are certainly some programs that require that much down, but FHA still offers a 3.5% down payment, VA (for veterans or active duty) offers a 100% loan product, Conventional products usually start at 5%, and USDA (for rural homes) offers a 100% loan which is fantastic!  If you are in the purchase market, take advantage of the programs while they are here, combined with low rates.  Where we will go from here is anyone's guess, so don't procrastinate! 

3. Rates and Fees:  Clients will often call us and say, "We are getting quotes and it seems like rates and fees are all over the place.  Why is that and how do they work?"  The thing to know about rates and fees for a mortgage is they go hand in hand.  Think of them like a seesaw--if rates are on one end and fees on the other end, if one goes up, the other goes down and vice versa.  If there are no or low fees, then usually the rate (on the other end of the seesaw) is higher.  If the rate seems really low, then check the other end (fees) and they are usually higher.  What works best?  Well, it really depends on your specific situation, but the key is looking at the ALL the options, then finding the balance point.  Don't get caught stuck up in the air on one end of the seesaw!!

 
4. Lending for Renovations:  For the last few years, this has probably been the hardest type of financing to find.  Fortunately, we are starting to see programs open back up, primarily in the Conventional market (loans under 417k).  The big thing to remember for these types of products is that working with a good company for the renovation will be key as they will have to meet certain criteria for the financing to be approved.  The days of mortgages allowing you to be the general contractor yourself or the company being one guy and a truck are behind us.  The project itself will also be reviewed, so having plans and specs is a big part in making the transaction go smoothly.  Once the builder, plans and specs are ready though, the products are actually very encouraging in that they are allowing appraisals to be based on the completion of the project and we are seeing higher lending amounts as a percentage of the home's worth.  All very positive signs--so dust off those plans for the kitchen renovation and basement build out!! 

5. Equity Lines:  These also have been basically a missing product for the last two years (and some of you have probably experienced the joy of having your equity lines 'frozen').  Recently, we have started to see new equity lines enter the market again.  The guidelines are certainly a little tougher than in years past (think 80 to 85% loan to value and tighter appraisal guidelines), but they are available and are certainly a nice feature to be able to access. If used correctly, they are great sources of funding for emergencies (it will soon be 104 degrees and our AC units will be working overtime) and home improvements.  If used incorrectly--trips to the mall for shoes and sunglasses--they certainly aren't a good idea.  It is definitely positive, however, to see equity lines back in the marketplace for our clients.

Hope you find this helpful and encouraging and that you share in our cautious optimism as we go into the spring/summer housing season. 

As always, we remain steadfast in our dedication to excellence in service and products that we provide to you.  Thank you for allowing Silverton to assist you with your mortgage needs. 

Regards,

Josh Moffitt  

Team Silverton Volunteers

Serving the Residents of

Zaban Night Shelter

New Silverton Locations

Buckhead (Atlanta) and Vinings, GA

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In honor of Atlanta, the "City of Trees"

How much do you know about Arbor Day?

Silverton Setting the Pace Again!

Silverton Named in Top 20 Atlanta Pacesetters 

For the second consecutive year, Silverton has been awarded an Atlanta Business Chronicle's Pacesetter Award as one of the Fastest Growing Companies in Atlanta.  This year, Silverton moved into the top 20 companies!

Honored for outstanding growth over the past two years at an April 15th breakfast awards ceremony, Silverton was proud to be listed among some of Atlanta's top companies.

Silverton Loan Originators Bring Home the Gold

Silverton Welcomes

Focus on Giving Back 

Around the Neighborhood

Experience nine days of intense film viewing; indulge in every type of cinema from the US & the World. 

www.atlantafilmfestival.com

Sweet Auburn Springfest 2011

May 7 - 8, 2011

Atlanta--Sweet Auburn Historic District

 
The largest Multicultural Street Festival in the South. This family event is held in the historic Sweet Auburn District in the heart of Atlanta. 

www.sweetauburn.com

Infophone
404-399-0886

 Enjoy artists covering all genres of music, from jazz to bluegrass to international performers.  Some of today's top names got their start on the festival stage, including:  Usher, Outkast, India Arie and Raven Symone.

You can reach the Sweet Auburn District via Interstate 75/85.

Times

Fri 5:00 pm - 10:00 pm

Sat 11:00 am - 9:00 pm

Sun 2:00 pm - 8:00 pm

  

 

 

Piedmont Park Conservancy

Presenting the Promenade at Piedmont Park featuring Legacy Fountain.  

www.piedmontpark.org

  

As part of the 53 acre expansion, The Promenade and Legacy Fountain open just in time for the 2011 spring and summer seasons.

 

The Promenade boasts the new Legacy Fountain and two grand meadows, with stunning views of the new wetlands and woodlands. The fountain features more than 70 jets, reaching up to 30 feet in the air and magnificent LED-lighting, capable of showcasing more than one

million lighting configurations.