We hear in the news most every week that mortgage rates are going down to historic lows.  As the average homeowner or new home buyer these numbers sound good but for many a visual is needed to show just how low rates have slipped.

Click on the images below for full size view

The first chart shows interest rates for the last 30 years.  For many it’s hard to remember that mortgage rates were actually 16.04% in 1982.  We purchased our current home in 1996 when the best rate was 7.81%.  I had a customer close on a house in Dacula last month for 3.74!!!

Click on the images below for full size view

The 200 year chart clearly shows the cycle interest rates take over a long period of time.  Look at 1920 and an estimated 5.25% interest rate.  Now look at 1939, 2.25%.  1940 shows us 2.95.  1960 – 4+%.  1982 16%.

The buyers market continues in both price and funding.  Find out what a 3.92% interest rate will do for your overall purchasing power.

Helping buyers and sellers in Johns Creek, Suwanee, Alpharetta, Cumming, and Lake Lanier

Nothing to do with Johns Creek real estate but very interesting all the same.  

I remember as a kid riding my bike on steep hills and jumping the creek, a real daredevil in my time.  Couldn’t imagine even walking this trail much less on a bicycle.

Enjoy - 

For the latest Johns Creek, Suwanee, Alpharetta, Cumming, and Lake Lanier new homes for sale please visit www.JeffBarnwell.net  

The AJC just released a table showing graduation rates for the state of Georiga’s high school seniors for 2011.  With a little pride at play, Lambert High School in south Forsyth Georgia produced a 97.5% graduation rate for 2011.  Lambert High School is south Forsyth’s newest high school and was already showing great achievements in coach Sid Maxwells Football program, the 2011 state championship varsity lacrosse team, and academic scholarships for graduating seniors.

With the distinction of graduating 97.5% of the 2011 senior class the Lambert High School district becomes an even hotter resale housing market.  For the latest Lambert new homes sales please visit www.HomesLambert.com

Now for the list as published in the AJC.

To search this database, first select a system before selecting a school. Leave the school name blank if you would like to view the entire county.

This chart shows the system wide graduation rates, ranked by the difference in the new-method rate from the old-method rate. Use the navigation at bottom to find.

Use your back page function when changing school systems.  You must reload this page for each search.

When ready to list your home please call Jeff Barnwell at 770-990-0743 or email JeffBarnwell@Remax.net

Useful searches may include Forsyth County Graduation rank, rankings, schools, performance rankings, seniors, college acceptance, University of Georgia, Georgia Tech, Emory, Auburn, Alabama, Johns Creek Graduation rates, athletics, academics and class sizes. Walton, Pope, Lassiter, Northview.

For the latest Lake Lanier new home searchs – www.LakeLanier-HomesForSale.com

For the latest Atlanta foreclosures and short sales – www.JeffBarnwellHomesForSale.com

More useful websites

www.JohnsCreek-newhomes.com     www.Suwanee-newhomes.com     www.Alpharetta-newhomes.com

www.Cumming-newhomes.com     www.HomesLambert.com

This commentary summarizes the reality of the changes and how it will impact future buyers or clients.

1) UPFRONT MIP increasing from 1.0% to 1.75%. – This increase sounds more alarming than it really is. The increase is amortized over a 30 year period so the bark is bigger than the bite. On a $100K loan amount the amount financed is $750 more and the monthly increase in payment is $3.00. Know that in 1992 the upfront was 4.25%. Over that last 20 years, the upfront MIP has decreased-
3.75%, 3.25%, 2.75%, 2.25% etc. The recent 1% upfront is the lowest this has been in 20+ years. So while the increase is not desired, historically 1.75% is still very low. I would suggest that contracts you are working on 4/9 or later, you put 1.75% in the contract for upfront MIP to avoid revisiting the issue prior to closing.

2) Monthly MIP increasing from 1.15% to 1.25%- Increase is unfortunate but eminent. Again, anytime the increase is heard it stings. But on loan amount of $200K the increase in monthly payment is $16.67. Yes it stings but this increase helps avoid the down payment amount going up from 3.5%. Bottomline, we all (lenders, agents, buyers, and sellers) want down payment to stay as little
as possible. These MIP increases help keep down payment minimum requirement low.

3) Streamline Refinances- We may be able to assist homeowner’s with FHA mortgages that closed on or before 5/31/2009. Please encourage your past customers with FHA financing to contact me in June of this year.  Please contact me with any questions and please
keep me in mind when you have a client in need of real estate financing or would like to explore refinancing. There has never been a better time to refinance or purchase!

Sincerely,

Gary Welch

Vice President, Residential Mortgage Lending Community and Southern Bank

770.888.2232 phone

678.587.0249 fax

NMLS# 659076

Jeff Barnwell – Selling homes in Johns Creek, South Forsyth, Cumming, Suwanee, Duluth, Alpharetta, Milton, Roswell, East Cobb, and Lake Lanier Georgia.

For the latest forclosure, short sale, and Fannie Mae Hud properties please visit www.JeffBarnwell.net  For the latest Lake Lanier information and new home sales please visit www.LakeLanier-HomesForSale.com

Wonderful established horse farm on 11.88 acres in Dacula Georgia.  3 mature fenced pastures gives your horses a place to call home.

Slice of paradise in the Dacula market.  Mini farm with exquisite ranch style all main floor living.  Four bedrooms, 3 baths, unfinished basement, huge garden tub in the master, huge stacked stone fireplace.  Small pond, amazing patio and porch overlooking the back pastures.  Fenced pastures, orchard and garden area.  RV parking.

If unable to view the slide show please click on the follow YouTube Link – http://youtu.be/NEUWdF4dNa4

One of a kind horse farm in Gwinnett County.  Convenient to Mall of Georgia, University of Georgia, Gwinnett Place Mall, Hwy 316, Sugarloaf Parkway, Kroger, Publix, Walmart, and Lake Lanier.

Please click on the linked address for more information on 1558 Ace McMillian Road, Dacula Ga 30019

1 photo – click photo for full-size slideshow    $632,000 4 Bedrooms 3 Full Bathrooms 0 ¾ Bathrooms 0 Half Bathrooms Single Family Home MLS ID 4339373 Status: Active Subdiv. / Location: None ⇓ more detail below Description new listing with 11.88 acres in dacula. property already has rental income from boarding horses. four fenced mature pastures, small pond and small stand of trees. house is in great shape with master on the main, open floor plan and unfinished basement. call today for an easy showing of this unique horse farm ⇑ back to top Property Schools Description: Single Family Residential Status: Active Style: 1 Story, “Ranch” Year Built: 1989 Stories: 1 Appx Sq Ft: 2,614 Elementary: Harbins Middle: Dacula High: Dacula General Information “None” Exterior General Features: Exterior: “Deck”,”Fenced Yard”,”Front Porch”,”Garden Area”; Neighborhood: “None”; Dock: “None” Construction: “Brick & Frame”,”Cedar”,”Rough Sawn” Pool: “None” Parking: “2 Car Garage”,”Auto Garage Door” Lot Description: “Level”,”Level Driveway”,”Private Backyard” Lot Area: 10 To 20 Acres; Lot Dimensions: 0 Utilities: Public Water, “Septic Tank”, “Clock Thermostat”,”Extra Insulation”,”Storm Doors” Interior General Features: Interior: “High Speed Internet Available”,”Trey Ceilings”; Appliances: “Dishwasher”,”Gas Ovn/Rng/Ctop”,”Microwave”; Laundry: “Kitchen”,”Laundry Room” Rooms: “Family Room”, “Bdrm On Main Lev”,”Master On Main”, “Separate Dng Rm”, “Breakfast Area”,”Cabinets Stain”,”View To Fmly Rm” Basement: “Boat Door”,”Bath/Stubbed”,”Full”,”Interior Entry” Heating: “Forced Air”,”Gas” Fireplaces: 1; – “Masonry” Cooling: “Ceiling Fans”,”Central Electric”

As posted in the Huffington Post this week

NEW YORK — Bank of America says it has begun a pilot program offering some of its mortgage customers who are facing foreclosure a chance to stay in their homes by becoming renters instead of owners.

The “Mortgage to Lease” program, which was launched this week, will be available to fewer than 1,000 BofA customers selected by the bank in test markets in Arizona, Nevada and New York.

Participants will transfer their home’s title to the bank, which will then forgive the outstanding mortgage debt. In exchange, they will be able to lease their home for up to three years at or below the rental market rate. The rent will be less than the participants’ current mortgage payments and customers will not have to pay property taxes or homeowners insurance, the bank said…..

What does this mean for home owners in Johns Creek, Duluth, Suwanee, Cumming, Alpharetta?  From what I have read homeowners behind in payments would sign a deed in lieu of foreclosure to Bank of America.  Once signed over BOA would generate a rental agreement through their property management group.  Homeowners would be required to identify all assets, submit to a credit check with the new management group, and meet all existing rental requirements before “moving in”.  Make no mistake, this is Bank of America watching over it’s non performing assets.  I would expect the existing homeowner having to compete with other renters in the BOA pipeline.

On a positive note.  BOA actions will take many foreclosure properties off the market helping to reduce inventory.  Good news for sellers in that you are not competing dollar for dollar on BOA foreclosed properties.  Bad news for my buyers.  Your foreclosure inventory just dropped by half when this program rolls out.