September 7, 2008
The Office of Federal Housing Enterprise Oversight has announcedthis morning, it is placing mortgage giants under conservatorshipin an effort to stabalize their ability to perform under tightercredit restrictions and low economic growth.
OFHEO cited the importance of these organizations and theirrole in residential real estate in their press release issuedSunday morning.
http://www.ofheo.gov/newsroom.aspx?ID=456&q1=1&q2=None
James Lockhart, Director Federal Housing Finance Agency, has taken steps over the past six months to help stabilize Fannie and Freddieincluding reducing capital requirements, removing portfolio caps, and others.
"I have determined that the companies cannot continue to operate safely and soundly and fulfill their critical public mission".Lockhart said.
Also released was a conservatorship Q & A which defines the conservators roleas well as the actions they will take.View the conservatorship Q&A herehttp://www.ofheo.gov/media/pdf/FHFACONSERVQA.pdf
John Wall
Realtor
CENTURY 21 RESULTS
www.teamresults21.com
Sunday, September 07, 2008
Saturday, June 21, 2008
Of the homes sold in May, 38.3 percent were foreclosure resales, up from a revised 37.6 percent in April and 5.4 percent in May a year ago.
The median price paid for a home last month was $339,000, down 4.2 percent from $354,000 for the month before, and down 30.0 percent from $484,000 for May a year ago when the median was at its peak. Around half the drop in median is due to depreciation, the other half due to shifts in the types of homes selling, and how those homes are financed.
The typical mortgage payment that home buyers committed themselves to paying last month was $1,569. That was down from a revised $1,645 in April, and down from $2,266 for May a year ago. Adjusted for inflation, mortgage payments are back to where they were in mid 2003. They are 23.3 percent below the spring 1989 peak of the prior real estate cycle. They are 38.0 percent below the current cycle's peak in June 2006.
Tuesday, June 03, 2008
Thursday, May 22, 2008
Housing Affordability in California
The California Association of Realtors announced today, the resultsof the First-Time Buyer's Affordability Index for the first quarter of2008.
The affordability index rose 11 points, at 44%. Translate that tojust under half of consumers in California can afford to purchase anentry level home. The report goes on to say that the minimum incomeneeded to qualify for a mortgage in California was 30% lower than this time last year.
Meaning only $67,830 in annual income is needed to qualify foran entry level purchase, compared to the $97,000 that was required last year.
Great news for homebuyers, and an indicator that the Real Estate market in California is still going strong. to see the numbers and the full press release
visit http://www.car.org/index.php?id=Mzg0ODk= or http://www.teamresults21.com
The affordability index rose 11 points, at 44%. Translate that tojust under half of consumers in California can afford to purchase anentry level home. The report goes on to say that the minimum incomeneeded to qualify for a mortgage in California was 30% lower than this time last year.
Meaning only $67,830 in annual income is needed to qualify foran entry level purchase, compared to the $97,000 that was required last year.
Great news for homebuyers, and an indicator that the Real Estate market in California is still going strong. to see the numbers and the full press release
visit http://www.car.org/index.php?id=Mzg0ODk= or http://www.teamresults21.com
Thursday, May 15, 2008
Price Reduction vs. Seller Credit
When buyers decide that they want to make an offer to purchase a property, often their fist instict is to offer less than asking price. This stems from a desire to save money, which we all want to do, and can perfectly understand. There is a problem with this approach though. In market where a property will see multiple offers (yes, even now, we are seeing many properties that are in a bidding war), you as a buyer stand a chance to loose out in the end. There are hundreds of ways to save money with real estate and during a consultation with us, we'll show you each and every way!
Here we present a scenario, in which the buyer saves a significant amount of money, without the hassle of having to justify a "low-ball" offer, or risk offending the seller (which is even worse).
Here we present a scenario, in which the buyer saves a significant amount of money, without the hassle of having to justify a "low-ball" offer, or risk offending the seller (which is even worse).
| Scenario #1 (traditional sale) | Scenario #2 ($20,000 'low-ball') | Scenario #3 (seller credit, 20k) | |
| Sales Price | $550,000 | $530,000 | $550,000 |
| 20% Down Payment | $110,000 | $106,000 | $110,000 |
| Loan Amount | $440,000 | $424,000 | $440,000 |
| 30 Year Fixed Rate | 6.25% | 6.25% | 5.0% |
| Payment | $2,709 | $2,610 | $2,362 |
| Savings of | None | $99 | $347 |
| As we can see, asking the seller to credit some money (at closing) toward buying down the interest rate, we have a greater savings over just asking for a discount on the purchase price. An additional benefit to this method is, a buyer who barely qualifies, or doesn't qualify at all, using the traditional, or discounted numbers, now qualifies with the seller credit because, the payment is less of a burden on Mr. Buyer's income ratio. | |||
Tuesday, March 25, 2008
EVENT: Home Buyer's Fair (Los Angeles)
For release:
Friday, March 21, 2008
C.A.R. and the “Los Angeles Times” team up to sponsor free Home Buyer’s Fair April 12 and 13
LOS ANGELES (March 21) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and the “Los Angeles Times” are sponsoring the Southern California Home Buyer’s Fair at the Los Angeles Convention Center on April 12 and 13 from 9 a.m. to 6 p.m.
The event is free to the public and features more than two dozen educational “how-to” seminars designed to help home buyers navigate today’s real estate market with confidence and peace of mind. Seminar topics range from understanding home prices and monitoring and fixing credit to applying for a mortgage and the importance of the home inspection. Many of the seminars will be presented in both English and Spanish.
The Southern California Home Buyer’s Fair (www.homebuyersfair.com) also will feature more than 75 exhibit booths, where attendees can obtain information from industry experts about a vast range of programs pertaining to homeownership and the home-buying process.
The first 200 attendees to present an entrance coupon on each day will receive a free movie ticket (one ticket per person).
For complete information, go to www.homebuyersfair.com.
Leading the way...® in real estate news and information for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with nearly 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
visit www.teamresults21.com for more news and events for the buyers and sellers in Southern California
Friday, March 21, 2008
C.A.R. and the “Los Angeles Times” team up to sponsor free Home Buyer’s Fair April 12 and 13
LOS ANGELES (March 21) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and the “Los Angeles Times” are sponsoring the Southern California Home Buyer’s Fair at the Los Angeles Convention Center on April 12 and 13 from 9 a.m. to 6 p.m.
The event is free to the public and features more than two dozen educational “how-to” seminars designed to help home buyers navigate today’s real estate market with confidence and peace of mind. Seminar topics range from understanding home prices and monitoring and fixing credit to applying for a mortgage and the importance of the home inspection. Many of the seminars will be presented in both English and Spanish.
The Southern California Home Buyer’s Fair (www.homebuyersfair.com) also will feature more than 75 exhibit booths, where attendees can obtain information from industry experts about a vast range of programs pertaining to homeownership and the home-buying process.
The first 200 attendees to present an entrance coupon on each day will receive a free movie ticket (one ticket per person).
For complete information, go to www.homebuyersfair.com.
Leading the way...® in real estate news and information for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with nearly 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
visit www.teamresults21.com for more news and events for the buyers and sellers in Southern California
Thursday, March 13, 2008
Saving Money on Your Mortgage
How to Get a Better Deal on a Home Loan
from wikiHow - The How to Manual That You Can Edit
It is often said that for most people, the purchase of their home will be their single greatest expenditure. In truth, however, the purchase of a mortgage--the points and interest paid over the life of the loan--often equals or exceeds the sale price of the house. Thus, as everyone knows, it's essential to get the best deal on your mortgage as possible. Doing so, however, is not an easy proposition. To get a truly great rate, you'll need not only to shop smartly for a mortgage, you also need to establish yourself as a good credit risk before you apply.
Steps
- Wait. The easiest way to get a lower rate is to wait until the interest rates on loans across the board are at low levels. Interest rates fluctuate a great deal, sometimes even during the same day, but there are times when they are simply far lower than at other times. Keep in mind, however, that (all other things being equal) periods of low interest rates often see increased home prices.
- Improve your credit. Make loan and other payments on time, especially over the months leading up to the loan application. Every delinquency will result in a lower credit score The better your score, the better your deal. Keep in mind, however, that it typically takes at least a couple years to significantly improve your credit.
- Get the mortgage first if multiple financial obligations are going to pop up in the near future. Numerous credit inquiries, such as new applications for credit cards, can hurt a borrower's score, especially if they're filed in the months prior to the home loan review process. In addition, if you add new debt expenses shortly before applying for a mortgage, the loan underwriter may question whether you'll be able to make all your payments, so avoid making large purchases in the months before you apply.
- Save as much money as possible for your down payment. A major determinant of your interest rate will be the loan-to-value ratio. These days you can sometimes get a mortgage for up to 125% of the value of the home, but if you can reduce the loan amount to 80% of the value, you'll get a better rate. The larger your down payment, the more equity you will have in the home from the start. With more equity, the loan is a lower risk for the lender, and you'll be rewarded with a lower interest rate. A lease option may also help you build equity if you're not in a position to make a large down payment.
- Reduce upfront expenses. Points--1 point equals 1% of the loan amount--and other upfront fees can drive the cost of your loan through the roof. Always take these into account when shopping for a mortgage.
- Think small. Don't shop for that 6-bedroom house right off the bat. Lenders consider "payment shock" when approving loans. If you go from a relatively low monthly housing payment to a huge one, you'll either end up covering too big a loan with too little money, or you won't qualify at all.
- Shop around. Mortgage rates for the same person can differ widely from lender to lender, so explore your options. If you belong to a credit union or if you've been with a bank for a long time, you'll often find your best rates there, though it's still a good idea to check around. A mortgage broker, who sifts through many lenders, may be able to find you the best rate.
- Get pre-qualified, or "pre-approved". The difference is a pre-qualification is based on information voluntarily submitted by you to a lender, who then provides an 'estimate' of the maximum mortgage amount you can afford. A pre-approval means the borrower, has had the lender perform credit checks, income verification, and various other underwriting tasks and has been approved for a specific mortgage amount. A pre-approval is a much stronger tool, obviously.
- Lock in a low rate. Simply being approved for a loan amount doesn't mean you'll get the interest rate you've been quoted. You'll need to lock in the rate.
Tips
- Do the math. Don't just listen to what the broker or loan officer tells you. Get out your calculator and calculate the total cost of the home including the loan. If the lender doesn't provide this information, simply multiply the monthly payment amount by the number of payments, and add any points or other upfront fees. For adjustable mortgages, however, there is a bit more uncertainty about the total cost because after an initial fixed period the interest rate may go up or down. However, you should still be able to calculate the minimum and maximum cost according to the terms of the loan.
- Be honest. If your lender doesn't have a truthful application, your quoted rate won't mean a thing (and you could be prosecuted for fraud in some cases). Discuss your personal situation, ask questions and make sure the options presented by the lender are best for you.
- Prioritize your debt, and if you must miss a payment, miss it on a low-priority loan (i.e. a credit card) rather than on an existing mortgage. Credit scoring systems look at the performance of similar loans first when deciding what type of score to assign. The most weight will be given to the performance of another mortgage.
- Which type of mortgage offers the lowest rate. It depends on the lender and on market conditions, but generally a shorter term (10 or 15 year) fixed mortgage will offer the lowest rates. Very short term (i.e. 5 years) adjustable rate mortgages (ARMs) may also offer excellent rates, but the upfront fees on these may drive the total cost up quickly.
Warnings
- If you do have credit problems, beware of credit repair agencies and lenders that advertise a fix for people with bad credit. Often these end up costing you more money and don't do a significant 'clean up' of your credit. Be honest with a trusted loan officer or mortgage broker, and ask for things you can do to help your credit.
- This article is a general guide only and is not intended to replace professional financial or legal advice.
Related wikiHows
- How to Buy a Home
- How to Buy Your Own Private Island
- How to Find a Property Appraiser
- How to Get Your Credit Report for Free
- How to Create a Mortgage Calculator With Microsoft Excel
- How to Prioritise Your Debts
- How to Save Money
- How to Save Money for Your First Home
- How to Accelerate a Mortgage Payoff
Article provided by wikiHow, a collaborative writing project to build the world's largest, highest quality how-to manual. Please edit this article and find author credits at the original wikiHow article on How to Get a Better Deal on a Home Loan. All content on wikiHow can be shared under a Creative Commons license.
Saturday, March 01, 2008
So. Cal home sale dip...
Southern California home sales dipped below 10,000 transactions for the first time in more than 20 years last month as most potential buyers and sellers appear to be waiting out market turbulence, a real estate information service reported.
A total of 9,983 new and resale houses and condos were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in January. That was down 24.6 percent from 13,240 for the previous month, and down 44.9 percent from 18,128 for January last year, according to DataQuick Information Systems.
For More....
A total of 9,983 new and resale houses and condos were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in January. That was down 24.6 percent from 13,240 for the previous month, and down 44.9 percent from 18,128 for January last year, according to DataQuick Information Systems.
For More....
Monday, February 04, 2008
California real estate licenses suffer first drop since '99
The housing downturn and revised license-exam requirements are possible factors in the decrease.
By JEFF COLLINS
California real estate licenses dropped last month from the year before for the first time since March 1999, ending a 7 ½ upswing in which licensees increased by 81 percent.
The California Department of Real Estate reported that the state had 548,959 licensees last month. That's still the third highest number on record, and it's equal to one licensee for every 22 California households or one for every 1.4 homes sold last year.
But that's down 0.1% from the number of licensees in December 2006 and from last November.
The housing downturn and revised license-exam requirements are possible factors in the decrease. Local Realtor associations are budgeting for membership drops of up to 15 percent in 2008.
Local real estate executives say agents and mortgage brokers have left the business in droves, or taken other jobs to make ends meet as the number of sales fell to their lowest level in at least two decades. The count of licensees is slow to drop since they're good for four years before requiring renewal.
Agents have been saying for the past two years that too many people joined their ranks during the housing boom in hopes of making easy money. For the complete article see http://www.pwr.net/
By JEFF COLLINS
California real estate licenses dropped last month from the year before for the first time since March 1999, ending a 7 ½ upswing in which licensees increased by 81 percent.
The California Department of Real Estate reported that the state had 548,959 licensees last month. That's still the third highest number on record, and it's equal to one licensee for every 22 California households or one for every 1.4 homes sold last year.
But that's down 0.1% from the number of licensees in December 2006 and from last November.
The housing downturn and revised license-exam requirements are possible factors in the decrease. Local Realtor associations are budgeting for membership drops of up to 15 percent in 2008.
Local real estate executives say agents and mortgage brokers have left the business in droves, or taken other jobs to make ends meet as the number of sales fell to their lowest level in at least two decades. The count of licensees is slow to drop since they're good for four years before requiring renewal.
Agents have been saying for the past two years that too many people joined their ranks during the housing boom in hopes of making easy money. For the complete article see http://www.pwr.net/
Thursday, December 06, 2007
Adjustable rate mortages frozen at their current rate
Newsflash:
December 6, 2007: In an effort to provide some stability to the mortgage market, while helping homeowner’s – as many as 2 million sub-prime ARM loans made at the start of 2005, through July 30, 2007, whose interest rates are scheduled to jump to higher rates between January 1, 2008 through July 31, 2010 will be locked in at their current rate.
Being called a ‘teaser freezer’ – the rate freeze is aimed at owner-occupied homes whose monthly mortgage payments may rise as much as 30% if adjusted to current rates. Its another effort to quash the “avalanche” of foreclosures that some in the industry are predicting. For more information visit www.federalreserve.gov or www.teamresults21.com.
December 6, 2007: In an effort to provide some stability to the mortgage market, while helping homeowner’s – as many as 2 million sub-prime ARM loans made at the start of 2005, through July 30, 2007, whose interest rates are scheduled to jump to higher rates between January 1, 2008 through July 31, 2010 will be locked in at their current rate.
Being called a ‘teaser freezer’ – the rate freeze is aimed at owner-occupied homes whose monthly mortgage payments may rise as much as 30% if adjusted to current rates. Its another effort to quash the “avalanche” of foreclosures that some in the industry are predicting. For more information visit www.federalreserve.gov or www.teamresults21.com.
Monday, June 11, 2007
A fun new toy.
I just found the coolest thing. The Meade My Sky Personal Video Planetarium! Its like have a personal astronomer. It can identify 30,000
celestial objects with point-and-shoot ease. So easy and fun!
Its got an easy menu, full color LCD screen and if you have a Meade Computerized telescope, it can even control that. Fun for the whole family, this thing is a must have for any hobbyist. I think I'll get two, one for me and one for my dad! (father's day is coming up soon.)
If you order from Opticsplanet you can get free UPS shipping! (you have to spend more than $29.95)
click here
skyscout to see everything you get and menu demos.
meade my sky
celestial objects with point-and-shoot ease. So easy and fun!
Its got an easy menu, full color LCD screen and if you have a Meade Computerized telescope, it can even control that. Fun for the whole family, this thing is a must have for any hobbyist. I think I'll get two, one for me and one for my dad! (father's day is coming up soon.)
If you order from Opticsplanet you can get free UPS shipping! (you have to spend more than $29.95)
click here
skyscout to see everything you get and menu demos.
meade my sky
Tuesday, May 15, 2007
relief for defaulting borrowers?
There may be some relief coming for homeowner’s who face foreclosure action by their lender. Washington Mutual, Bank of America, Citigroup, Merrill Lynch, and Wells Fargo, received letters asking for a six month moratorium on Foreclosures and instead urging these major lenders in the California market to focus on finding ways to keep borrowers from loosing their homes.
Many thousands of borrowers in California are at risk of default because they took on risky loans, and could loose their homes. Consumer groups, legal aid groups, housing services, at least place some blame on the lenders themselves because of loose underwriting which pushed some borrowers into loans they couldn’t afford.
The Los Angeles Times quoted the associate director of California Reinvestment Coalition as saying “We are asking the largest lenders in the state to take leadership so that families can keep their homes and California’s economy won’t suffer”.
(edit)
as of December 6, 2007 one effort to assist homeowners has been put into place - visit the December 6 posting for details.
Many thousands of borrowers in California are at risk of default because they took on risky loans, and could loose their homes. Consumer groups, legal aid groups, housing services, at least place some blame on the lenders themselves because of loose underwriting which pushed some borrowers into loans they couldn’t afford.
The Los Angeles Times quoted the associate director of California Reinvestment Coalition as saying “We are asking the largest lenders in the state to take leadership so that families can keep their homes and California’s economy won’t suffer”.
(edit)
as of December 6, 2007 one effort to assist homeowners has been put into place - visit the December 6 posting for details.
Wednesday, May 09, 2007
Friday, April 13, 2007
everything you ever wanted to know about real estate but were afraid to ask: Reverse Mortgage
A reverse mortgage is a way to borrow money against the equity in your home to provide you with tax-free income. You can receive funds in any number of ways including:
Lump sum
Regular monthly payments for as long as you live (or reside in your home)
Monthly payments with a pre-determined cut off date
A line of credit to draw on when you need it
or a Combination of these
A reverse mortgage can enable you to enjoy retirement more, provide some financial cushioning for future emergencies or major expenses, while, allowing you to remain in your home and keep title to it. Being more complicated than a conventional mortgage, a reverse mortgage carries some pros & cons and has different qualifying requirements for borrowers. The most notable requirement is that the youngest borrower must be at least 62 years old when the loan closes.
Some other requirements are that the home must be your primary residents and remain so during the term of the loan, and that existing loans, or mortgages be paid off prior to closing on the Reverse Mortgage. (reverse mortgage funds can be used for this according to cash advance rules).
If you choose to, you can even pay off a reverse mortgage early by refinancing out, or just settling up with the lender. If you should pass away before the loan is paid, your heirs can choose to pay off the loan or sell the property, any proceeds above the loan amount of your home goes to your heirs.
applying for a reverse mortgage is easy, and you can start online. The National Reverse Lenders Association website is a good starting point to gather information from lenders. The URL is http://www.reversemortgage.org/ .
Team Results also has a 12 page pamphlet available that covers in detail all aspects of reverse mortgages. We'll gladly mail a copy or e-mail an electronic version at your request. Send requests to TeamResults@Century21.com. Be sure to include your preferred delivery method.
© 2007, John Wall, all rights reserved.
Lump sum
Regular monthly payments for as long as you live (or reside in your home)
Monthly payments with a pre-determined cut off date
A line of credit to draw on when you need it
or a Combination of these
A reverse mortgage can enable you to enjoy retirement more, provide some financial cushioning for future emergencies or major expenses, while, allowing you to remain in your home and keep title to it. Being more complicated than a conventional mortgage, a reverse mortgage carries some pros & cons and has different qualifying requirements for borrowers. The most notable requirement is that the youngest borrower must be at least 62 years old when the loan closes.
Some other requirements are that the home must be your primary residents and remain so during the term of the loan, and that existing loans, or mortgages be paid off prior to closing on the Reverse Mortgage. (reverse mortgage funds can be used for this according to cash advance rules).
If you choose to, you can even pay off a reverse mortgage early by refinancing out, or just settling up with the lender. If you should pass away before the loan is paid, your heirs can choose to pay off the loan or sell the property, any proceeds above the loan amount of your home goes to your heirs.
applying for a reverse mortgage is easy, and you can start online. The National Reverse Lenders Association website is a good starting point to gather information from lenders. The URL is http://www.reversemortgage.org/ .
Team Results also has a 12 page pamphlet available that covers in detail all aspects of reverse mortgages. We'll gladly mail a copy or e-mail an electronic version at your request. Send requests to TeamResults@Century21.com. Be sure to include your preferred delivery method.
© 2007, John Wall, all rights reserved.
Monday, April 02, 2007
drug and alcohol treatment
Paid Post: Please read our disclosure.
***
“If you know someone addicted to alcohol and any other drug getting informed and involved maybe that persons only hope of a positive outcome of the addiction. Addiction usually ends in one of three ways treatment, jail, or death.” Stone Hawk Website
Located in Battle Creek Michigan (just east of Chicago), Stone Hawk heals addicts through its education and cleansing approach to drug and alcohol treatment. The program works to achieve permanent drug free living for its participants, with a success rate near 80%. The successful results of the program can be attributed to its healing and education of patients. Stone Hawk’s life skills and after treatment programs add an additional component that yield results.
alcoholism treatment
***
“If you know someone addicted to alcohol and any other drug getting informed and involved maybe that persons only hope of a positive outcome of the addiction. Addiction usually ends in one of three ways treatment, jail, or death.” Stone Hawk Website
Located in Battle Creek Michigan (just east of Chicago), Stone Hawk heals addicts through its education and cleansing approach to drug and alcohol treatment. The program works to achieve permanent drug free living for its participants, with a success rate near 80%. The successful results of the program can be attributed to its healing and education of patients. Stone Hawk’s life skills and after treatment programs add an additional component that yield results.
alcoholism treatment
Sunday, April 01, 2007
Real Estate & the Economy
Business Week televised a couple of good items about the real estate industry as a whole yesterday. Their video can be seen here: http://feedroom.businessweek.com/index.jsp?fr_story=1164424c0c16afd06ab22f7edc11e1b8de2f5ab5 I've pulled information from other current videos as well.
Some of the bullet points I thought were important are:
Buyers still have an edge in real estate.
Seller's are becoming more flexible and responsive to buyers' terms. It was specifically pointed out that buyer's who low-balling the selling price won't produce the desired result and indicated that 10% below asking was a reasonable price reduction to request.
Seller's can increase their returns by upgrading with environmentally friendly improvements. Shown by the trend in eco-friendly home buyers.
Sellers were directed to post at least 6 high-quality photos (recommended by Realtor.com) because 80% of home buyer's check out listings online before touring in person.
Buyer's too have some work to do like; giving a boost to their credit score, and finding the best deal (budget friendly) on a mortgage.
Mike Mandel, Business Week Economist, talked about the economy as a whole & the real estate market's effect on it. He says there are factors other than the mortgage market that consumers should be keeping an eye on.
Mike pointed out that 30 year fixed rates are actually lower than they were a year ago and that borrower's who have an adjustable rate mortgage, and decent credit will have little trouble re-financing into a fixed rate and will be "sitting pretty".
As a whole the mortgage market is doing just fine, though the sub-prime market is in a bit of trouble. The market will no doubt affect the economy but won't cause a recession according to Mandel. One of the more important aspects to watch closely is business investment which he says have slowed and is at very low levels.
Also the increase in foreclosure activity was localized to areas that didn't have strong real estate markets in the first place.
Some of the bullet points I thought were important are:
Buyers still have an edge in real estate.
Seller's are becoming more flexible and responsive to buyers' terms. It was specifically pointed out that buyer's who low-balling the selling price won't produce the desired result and indicated that 10% below asking was a reasonable price reduction to request.
Seller's can increase their returns by upgrading with environmentally friendly improvements. Shown by the trend in eco-friendly home buyers.
Sellers were directed to post at least 6 high-quality photos (recommended by Realtor.com) because 80% of home buyer's check out listings online before touring in person.
Buyer's too have some work to do like; giving a boost to their credit score, and finding the best deal (budget friendly) on a mortgage.
Mike Mandel, Business Week Economist, talked about the economy as a whole & the real estate market's effect on it. He says there are factors other than the mortgage market that consumers should be keeping an eye on.
Mike pointed out that 30 year fixed rates are actually lower than they were a year ago and that borrower's who have an adjustable rate mortgage, and decent credit will have little trouble re-financing into a fixed rate and will be "sitting pretty".
As a whole the mortgage market is doing just fine, though the sub-prime market is in a bit of trouble. The market will no doubt affect the economy but won't cause a recession according to Mandel. One of the more important aspects to watch closely is business investment which he says have slowed and is at very low levels.
Also the increase in foreclosure activity was localized to areas that didn't have strong real estate markets in the first place.
Tuesday, March 27, 2007
Monday, March 26, 2007
Home Loans and Homework
When shopping for a home loan, it is important to choose reliable sources that offer reasonable rates, and that don't make claims that seem far fetched.
I like Mortgage Lenders that allow you to research your options before signing up for anything. The internet is an excellent resource for doing just that. Sites that have posted current rates and terms upfront are best. By doing a little homework ahead of time, you will be better able to make the right choices for you and your personal financial situation. In the end, it all makes for a smoother transaction.
Mortgage Lenders , is a lender site that we tried and really liked. The information is current and accurate and the website is easy to navigate. (essential because our attention span is getting shorter)
I like Mortgage Lenders that allow you to research your options before signing up for anything. The internet is an excellent resource for doing just that. Sites that have posted current rates and terms upfront are best. By doing a little homework ahead of time, you will be better able to make the right choices for you and your personal financial situation. In the end, it all makes for a smoother transaction.
Mortgage Lenders , is a lender site that we tried and really liked. The information is current and accurate and the website is easy to navigate. (essential because our attention span is getting shorter)
Saturday, March 24, 2007
Here's To Real Estate Blogs
The Los Angeles Times today printed an interesting piece on real estate blogs. In it Brad Inman (Inman News) was quoted as saying, “some of the best reporting this year has been from the blogs.”
I guess that’s kudos for all of us here. My favorite quote in the article was from a reader of the Housing Bubble Casualty Blog who said, “you were one of the influences that saved me from buying in Los Angeles”. It made me wonder where that person is renting now.
According to Adam Rappoport, San Deigo Broker, “bloggers see the same statistics we all see, but they interpret them differently.”
Read the article for yourself www.latimes.com, and let me hear your view. Personally, and this has been said many times before; Real estate is an ever changing business with ups and downs like all others. Its also a very local marketplace. In my area alone, there are neighborhoods within blocks of each other that are enjoying quick sales with offers at or near asking, and others that are holding inventory 3 or four months old.
I guess my answer to the question “is it a good time to buy?” is: That depends on your point of view. If you are looking for a quick way to make money with real estate, it might not be a good time. If you are looking for a home to raise a family, and a place to call your own – then it’s a great time. As far as bubble casualty blogs and the like, these people are the ones who didn’t buy when they could and now are regretting it, while justifying their stalling on unforeseen market conditions. Those are the people who resign themselves to renting forever. As a landlord myself, I love those people – because they pay all my bills for me and If I want to give myself a raise… Up goes the rent.
The people who actually are experiencing a bubble are those who never should have bought in the first place. They are the folks who sat in front of a loan officer who offered a great deal on a loan they could barely afford, and took the deal. Of course, without realizing that they’d end up owing more than they thought, and wouldn’t be able to make the payments 5 years down the line. That truly is just shoddy work on behalf of the mortgage industry, and a spotlight on the fraud that takes place in it.
Advice for buyers; seek out a mortgage planner – who will lay it all out and show you how much your investment really is. And, if you have to lie about your income or debts to get a better deal, don’t. (aside from being illegal, you’ll only end up with a home you can’t afford.)
I guess that’s kudos for all of us here. My favorite quote in the article was from a reader of the Housing Bubble Casualty Blog who said, “you were one of the influences that saved me from buying in Los Angeles”. It made me wonder where that person is renting now.
According to Adam Rappoport, San Deigo Broker, “bloggers see the same statistics we all see, but they interpret them differently.”
Read the article for yourself www.latimes.com, and let me hear your view. Personally, and this has been said many times before; Real estate is an ever changing business with ups and downs like all others. Its also a very local marketplace. In my area alone, there are neighborhoods within blocks of each other that are enjoying quick sales with offers at or near asking, and others that are holding inventory 3 or four months old.
I guess my answer to the question “is it a good time to buy?” is: That depends on your point of view. If you are looking for a quick way to make money with real estate, it might not be a good time. If you are looking for a home to raise a family, and a place to call your own – then it’s a great time. As far as bubble casualty blogs and the like, these people are the ones who didn’t buy when they could and now are regretting it, while justifying their stalling on unforeseen market conditions. Those are the people who resign themselves to renting forever. As a landlord myself, I love those people – because they pay all my bills for me and If I want to give myself a raise… Up goes the rent.
The people who actually are experiencing a bubble are those who never should have bought in the first place. They are the folks who sat in front of a loan officer who offered a great deal on a loan they could barely afford, and took the deal. Of course, without realizing that they’d end up owing more than they thought, and wouldn’t be able to make the payments 5 years down the line. That truly is just shoddy work on behalf of the mortgage industry, and a spotlight on the fraud that takes place in it.
Advice for buyers; seek out a mortgage planner – who will lay it all out and show you how much your investment really is. And, if you have to lie about your income or debts to get a better deal, don’t. (aside from being illegal, you’ll only end up with a home you can’t afford.)
Thursday, March 15, 2007
Plan your summer vacation the right way
Planning your summer vacation? Try hotelreservations.com. This website is well planned and laid out. Navigating it is easy and the thing I liked best was you can search for rates and find deals without having to register. Something I find really annoying.
The deals online are fantastic. I found car rental in Long Beach for as little at $15 per day. Of course that was for an economy sized car but you can book anything you want. I found sedans and SUVs and even sports & near-luxury cars.
The days of visiting your local travel agent to plan your vacation are over. Most having been out of business for a while now. Hotel Reservations gives you the ability to be your own travel agent. Finding the right deals, and travel options for you and your family.
Online you can even plan and book more complicated trips than your family reunion up north. It easy to find packages for popular travel destinations or create your own. The savings on this site make it possible to create your own package, Airfare, hotel or vacation rental property, rental car and more all at once from your couch.
If you are like me though and sometimes like to actually speak with someone about your travel plans (or just verify that your reservations are in place) you can call 800- 447-4136 for assistance. With more than 70,000 properties worldwide, including Hotels, Bed & Breakfasts. Condominiums, and resorts, booking the perfect trip is effortless online. According to the website reservations are backed by their Price Guarantee so you can rest assured you’re getting the best deal.
Hotel Reservations
The deals online are fantastic. I found car rental in Long Beach for as little at $15 per day. Of course that was for an economy sized car but you can book anything you want. I found sedans and SUVs and even sports & near-luxury cars.
The days of visiting your local travel agent to plan your vacation are over. Most having been out of business for a while now. Hotel Reservations gives you the ability to be your own travel agent. Finding the right deals, and travel options for you and your family.
Online you can even plan and book more complicated trips than your family reunion up north. It easy to find packages for popular travel destinations or create your own. The savings on this site make it possible to create your own package, Airfare, hotel or vacation rental property, rental car and more all at once from your couch.
If you are like me though and sometimes like to actually speak with someone about your travel plans (or just verify that your reservations are in place) you can call 800- 447-4136 for assistance. With more than 70,000 properties worldwide, including Hotels, Bed & Breakfasts. Condominiums, and resorts, booking the perfect trip is effortless online. According to the website reservations are backed by their Price Guarantee so you can rest assured you’re getting the best deal.
Hotel Reservations
If you haven’t already, give it a try and book your next vacation online at Hotel Reservations.com. You’ll find it rewarding and fun to do-it-yourself.
If you need help or have more questions, the FAQ page offers solutions to the most important questions such as: What happens when I make a reservation?, I don’t have long to wait for a conformation, what should I do?, and the all important – How do I cancel a reservation?.
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