MORTGAGE NEWS
real estate
July 2nd, 2009
C.A.R. Mortgage Update
This week’s C.A.R. Mortgage Update contains information about finding a home loan, reverse mortgages, FHA loans, and current mortgage rates.
Best way to find a home loan
During the height of the real estate market, most borrowers who applied for a mortgage received one. However, in today’s lending environment, consumers should be more cautious about where they apply for a loan and from which Web sites they receive quotes.
Borrowers should be cautious about sites that request a Social Security number and address upfront. The site may pull the consumer’s credit report, which could have a negative impact on their FICO score should they not apply for the mortgage.
It’s also important that consumers ensure that all fees are clearly disclosed on a site’s rate quote. Otherwise they may be surprised when receiving the paperwork from the lender.
Borrowers who are unsure of which type of mortgage is best for them and their situation should contact a mortgage broker. Those in the market for a jumbo loan or financing an investment property may best be served by working with an experienced broker.
To read the full story, please click here:
To view additional articles, which also may be of interest to clients in the market for a new home loan or loan modification, please visit the following:
Reverse mortgages for home purchases
To read the full story, please click here
F.H.A. loans help sales
To read the full story, please click here
U.S. mortgage rates drop to 5.32%, Freddie Mac says
To read the full story, please click here
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MORTGAGE RELIEF
real estate
March 12th, 2009
CNBC
No Job? Can’t Refinance? How to Talk to Your Bank
As unemployment rises in many states, more homeowners are finding it difficult to pay their mortgage each month. Although most unemployed homeowners do not qualify for refinancing, as they do not meet the minimum qualifying requirements such as proof of income, there are steps they can take to improve their chances of a successful refinance.
MAKING SENSE OF THE STORY FOR CONSUMERS
· The first, and probably most important step in the refinance process, is to find out which company services the loan. The loan servicer may or not may not be the company where the mortgage payment is sent each month. This step is crucial, because the loan servicer is generally the one that can modify the loan. If the loan servicer is not able to provide assistance, the owner of the mortgage may be able to help.
· Once a homeowner realizes he or she may no longer be able to pay the mortgage, the homeowner should contact the “loss mitigation department” of the lender. The “loss mitigation department” is where the refinance and/or loan modification process begins.
· After discussing options with the loss mitigation department, homeowners should write a forbearance letter, also known as a postponement of payment letter. This letter is sent to the servicer or lender and details the homeowner’s current financial situation and hardship.
· Many government agencies and nonprofit organizations provide free services to homeowners and will serve as an intermediary between the lender/servicer and the homeowner. Some companies charge fees for the same services. Housing analysts caution homeowners to conduct research and due diligence prior to paying a company for loan modification and/or refinance assistance.
To read the full story, please click here
DOWNSIZING?
real estate
February 13th, 2009
How to downsize your house
Moving can be quite stressful. Many aren’t aware of how many items and mementos they’ve collected until it’s time to pack the moving boxes. Employing a few strategies to assist with downsizing can help reduce the anxiety of moving.
MAKING SENSE OF THE STORY FOR CONSUMERS
· Jim Henderson, president of William C. Huff Companies, a moving and storage firm specializing in affluent homeowners, advises homeowners to begin downsizing at least three to six weeks prior to listing their current home. This will ease the stress of moving day, and help declutter the home for potential home buyers.
· Henderson recommends homeowners start downsizing by throwing out or donating items that are not used very often and hold little sentimental value. Often, these types of items are stored in a shed, basement, or attic. Items in the heart of the home, such as the family room and kitchen, are usually those valued and used the most, so they can be packed up immediately.
· Envisioning where each object will fit in the new home is essential. If an object doesn’t fit with the new home or will be useless in a year or two, it is likely that it can be thrown out or donated.
· If feasible, selling the home with the furniture, carpets and other furnishings include will reduce moving costs and could make the home more valuable to buyers.
To read the full story, please click here:
http://online.wsj.com/article/SB123317195784925317.html
REFINANCE?
real estate
February 11th, 2009
Refinance? First, see whether you will save
Homeowners thinking of refinancing their home loans should consider if the long-term savings is beneficial prior to making a decision. Although there isn’t a standard formula to determine whether refinancing is the best option, there are some basic guidelines.
Focusing on the potential savings, rather than the new rate is the first step. To determine the break-even point — the number of months it will take to pay off the cost to refinance — divide the total cost of the loan by the monthly savings from refinancing. That number is how long the homeowners should live in the house for the refinance to be viable. For example, if the refinance will cost $5,000 and the monthly savings is $200, then the homeowner will have to live in the home for a little over two years to recoup the costs of the refinance and begin to realize a true savings.
To read the full story, please click here:
http://www.orlandosentinel.com/business/orl-refinance2109jan21,0,4772660.story
TURNING THE CORNER
real estate
February 8th, 2009
ReutersHousing market may have turned a pivotal corner
With home prices in many areas declining to the point where owning a home is a more affordable option than renting, especially in the West, many potential home buyers appear to be getting off the fence and starting to purchase. Add affordable prices to record-low interest rates and the demand for housing has reached a pivotal turning point.
MAKING SENSE OF THE STORY FOR CONSUMERS
· Home prices in some areas of California have dropped so much that monthly mortgage payments on single-family homes are comparable to apartment rents, according to recent data. Mollie Carmichael, a senior vice president with John Burns Real Estate Consulting, says that in the Inland Empire, the average monthly rent for an apartment is $1,157. Carmichael adds that the average after-tax monthly mortgage payment on a median-priced single-family detached home is $1,154 in the same area.
· The large number of distressed properties has led to a surge in home sales around the country. Existing home sales across the U.S. rose 6.5 percent to an annual rate of 4.74 million units in December, according to the NATIONAL ASSOCIATION OF REALTORS® (NAR). A senior director of housing economics at Moody’s Economy.com believes the latest NAR report means sales have reach bottom.
· Interest rates on 30-year, fixed-rate mortgages averaged 5.12 percent for the week ending Jan. 22, which is almost 1 percentage point lower than the average rate in late November 2008, according to Freddie Mac. The prior week, 30-year mortgage rates average 4.96 percent, the lowest since Freddie Mac began its weekly survey in 1971.
To read the full story, please click here:
http://www.reuters.com/article/ousiv/idUSTRE50L35320090127
New Home Trends
real estate
February 5th, 2009
As home pricing bounces back, we will see new trends in design, size of homes, and the materials used.
Granite countertops are out? What’s in?
MAKING SENSE OF THE STORY FOR CONSUMERS
· Homes are being built smaller, with simpler designs, and less “bump-outs” or dead space. According to a design editor at Builder magazine, boxes are cheaper, easier and faster to build. The heating and cooling bills also may be lower with less dead space.
· While homes may be smaller, home buyers aren’t skimping on luxury. Some master bathrooms may have a shower with upgrades, such as multiple body sprays, radiant heat in the bathroom floor and the shower walls, along with warming drawers for towels and robes, rather than a simple shower and whirlpool spa tub.
· Specialty rooms, like a home office, exercise and theater rooms are transitioning in multi-function spaces. Traditional home offices are no longer off limits to children, but rather the tech center of the house, with ample space for computers and electronic gadget chargers.
· The newest trend in countertops is quartz surfacing, recycled glass, cement or paper-based products, not granite. Along the same lines, stainless-steel appliances also are becoming less popular. Appliances with built-in panels that resemble the cabinetry also are in higher demand.
To read the full story, please click here:
http://www.chicagotribune.com/classified/realestate/advice/chi-local-scene_chomes_0123jan23,0,1091270.column
Home Pricing
real estate
February 2nd, 2009
C.A.R Report on Home Sales
DEC. HOME SALES INCREASED 84.9 PERCENT; MEDIAN PRICE FELL 41.5 PERCENT
Home sales increased 84.9 percent in December in California compared with the same period a year ago, while the median price of an existing home fell 41.5 percent, C.A.R. reported yesterday. “Sales continue to be strong, exceeding 500,000 units for the fourth consecutive month, and year-to-date sales are nearly 27 percent above last year,” said C.A.R. President James Liptak. “California home buyers benefited during the last half of 2008 from the high-cost loan limit of $729,750, which fell to $625,500 as of Jan. 1. The restoration of the high cost loan limit to the previous level would not only help a housing market still struggling to turn around, but also make financing more affordable for home buyers.”
Closed escrow sales of existing, single-family detached homes in California totaled 544,580 in December at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR(R) associations statewide. Statewide home resale activity increased 84.9 percent from the revised 294,520 sales pace recorded in December 2007. Sales in December 2008 increased 5.9 percent compared with the previous month.
The median price of an existing, single-family detached home in California during December 2008 was $281,100, a 41.5 percent decrease from the revised $480,820 median for December 2007, C.A.R. reported. The December 2008 median price fell 2 percent compared with November’s revised $286,850 median price.
LAND PARK SUBDIVISION
real estate
February 2nd, 2009
Located adjacent to Stanford Hills, this subdivision offers quiet nights and starry skies away from the city lights.
This home offers a beautiful sunrise and and beautiful moon appearing through the picture windows at night.
STANFORD CUSTOM HOME
real estate
February 2nd, 2009
Open Houses
real estate
January 18th, 2009
Crown Meadows open house schedule for Jerry Hill Martin;
MONDAY 3-6
WEDNESDAY 3-6
THURSDAY 3-6
FRIDAY 3-6
FIRST FIVE HOMES IN ESCROW BY JANUARY 31ST WILL RECEIVE UPGRADE PACKAGE WORTH $7400.00.
DIRECTIONS: From I-5 take Bonneyview West, then HWY 273 South to Left on Girvan. Right on Platinum, Right on Pendant Way. Home is on the corner of Pendant and Landcaster.
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ON SATURDAY THE 24TH, BE SURE AND VISIT 4664 AUTUMN HARVEST OPEN HOUSE 1-3 LISTING #09-43
I-5 to Oasis Rd, Right on Cascade, left on Autumn Harvest Way. Second house on the left.
PREMIER SERVICE® is the focus of Real Estate Professionals/GMAC. We are located in Redding, CA (at the North end of the Sacramento River Valley) in the midst of river, lake, ranch and mountain terrain.
Our Customer Satisfaction Rating, based on an independent survey, exceeds 97%. This is reflected in our 2008 "QUIE" Award recognizing the TOP 10 REAL ESTATE COMPANIES in NORTH AMERICA! REP/GMAC in #2.
