Monday, September 29, 2008
Mortgage Rates Rose Last Week
30 year mortgage rates rose last week to 5.78%. The rates are still lower than last year at this time when they averaged 6.42%, and still lower than this years peak of 6.63% in July. The 3rd quarter housing market still shows some softness in sales price and activity according to Frank Nothaft Freddie Mac VP.
Tuesday, September 16, 2008
Queen Creek, Is it the Right Move?
Thinking of moving to Queen Creek, AZ? It is surrounded by the beautiful San Tan Mountains with the 10,000 + acre San Tan Regional Park nearby with hiking, biking and horseback riding trails. There are a number of opportunities to buy homes at a great price, interest rates are still low and banks are begging for well qualified buyers. There are great deals offered by the builders or you can pick up a foreclosure at an overly reasonable price and expect great returns in 3-5 years. Nearby Shopping at the Queen Creek Marketplace now includes stores like Kohl's, Super Target , Ross, Tilly's and Steinmart among many others. Queen Creek is building a new beautifully mastered library and more dining is coming to the area. The area unemployment rate is low and job opportunities are all around. If you want to learn more about this area or the abundance of great homes available... please contact Dani at 480-695-2010.
Saturday, September 13, 2008
ASU Realty Studies
In August Foreclosures increased to 44% of the 7505 recorded transactions according to a report released by Realty Studies, a division of the Morrison School of Management and Agribusiness at ASU.
"Foreclosure activity differs throughout the Valley." said Jay Butler, director of Realty Studies at ASU in a written statement.
The median sales price of all homes in valley was $193, 550 compared to $161,875 for forclosures. With Scottsdale reporting a median of $560,000 and Maryvale at just under $130,000.
There are hopes that the mortgage takeovers by the federal government will bring confidence and stability back to the housing market.
For more info visit www.asu.edu
"Foreclosure activity differs throughout the Valley." said Jay Butler, director of Realty Studies at ASU in a written statement.
The median sales price of all homes in valley was $193, 550 compared to $161,875 for forclosures. With Scottsdale reporting a median of $560,000 and Maryvale at just under $130,000.
There are hopes that the mortgage takeovers by the federal government will bring confidence and stability back to the housing market.
For more info visit www.asu.edu
Wednesday, September 10, 2008
DECREASE In Interest Rates? Is it GOOD? 5.75%
With the take over of Fannie Mae and Freddie Mac last week, we are seeing a drop in interest rates.
Interest rates have tumbled down, having homeowner and potential buyers flooding loan offices with their phone calls. However, with this lowered interest rate came a higher down payment requirement set by many of the mortgage companies, making it harder for some people to qualify for loans.
Rates dropped from 6.5%, which they have remained steady at over the summer, to 6% this week.
Lenders scared by the falling home prices and increase in foreclosures have hightened their standards for those applying for new mortagages.
On Wednesday, the typical person with solid credit borrowing $729,750 or less could get a fixed rate of 5.75% if they paid 1% upfront fee.
Unfortunately, these new lowered interest rates do not apply to those of you loaning over the $729,750. Rates for these loans are in the ballpark of 8.125% with a 3.5% of purchase price upfront fee.
Please let me know if you have questions regarding this new loan strategy. I would be happy to put you in touch with a loan consultant who can answer your questions regarding a new mortgage or refinance.
Dani Miller
480-695-2010
home4you@hotmail.com
Interest rates have tumbled down, having homeowner and potential buyers flooding loan offices with their phone calls. However, with this lowered interest rate came a higher down payment requirement set by many of the mortgage companies, making it harder for some people to qualify for loans.
Rates dropped from 6.5%, which they have remained steady at over the summer, to 6% this week.
Lenders scared by the falling home prices and increase in foreclosures have hightened their standards for those applying for new mortagages.
On Wednesday, the typical person with solid credit borrowing $729,750 or less could get a fixed rate of 5.75% if they paid 1% upfront fee.
Unfortunately, these new lowered interest rates do not apply to those of you loaning over the $729,750. Rates for these loans are in the ballpark of 8.125% with a 3.5% of purchase price upfront fee.
Please let me know if you have questions regarding this new loan strategy. I would be happy to put you in touch with a loan consultant who can answer your questions regarding a new mortgage or refinance.
Dani Miller
480-695-2010
home4you@hotmail.com
Monday, September 8, 2008
FANNIE AND FREDDIE TAKE OVER!
FANNIE & FREDDIE
Treasury Secretary Henry Paulson announced that the federal government had taken over Freddie Mac and Fannie Mae. The long term effects of the overall housing market are up in the air, but here is what is known regarding this plan so far. There may be some positive effects to interest rates from this take over.
FANNIE & FREDDIE TAKE OVER
The two mortgage giants are now operating in a government conservatorship that will be administered by the new Federal Housing Finance Agency (created under the same Congressional authority that authorized the Treasury Department to shore up Freddie and Fannie. James Lockhart, former director of the Office of Federal Housing Enterprise Oversight which had responsibility for the two government sponsored entities (GSEs) is the new director of the Finance Agency.
The Conservator will control and direct the operation of the Company and will have all the powers formerly held by the shareholders, directors, and the officers of the Company and conduct all business, collect all money due to the company, preserve the assets and property of the company, and contract for any assistance necessary.
In return for providing funds to guarantee their debt the Treasury Department will immediately receive $2 billion in preferred stock that will pay a 10 percent dividend. $1 billion of the stock will come from each of the two companies and the Conservatorship will purchase additional stock, perhaps as much as $100 billion worth, if the GSE's capital reserves fall below an agreed upon level. This preferred stock will take president over any claims by holders of common or the existing preferred stock.
According to Secretary Paulson, the GSEs will modestly increase their mortgage backed securities portfolios through the end of next year "through prudent mortgage purchases" and will then reduce those holdings by 10 percent per year after 2009. The portfolios shall not exceed $850 billion for each company. An Associated Press article quoted Mark Zandi, chief economist for Moody's Economy.com, as saying this will effectively make the federal government the nation's mortgage lender.
It appears that Treasury is primarily interested in protecting holders of GSE debt. This class of creditors includes many large investment companies and a number of foreign governments.
The Treasury Department is establishing a new secured lending credit facility which will be available to the two GSEs and to Federal Home Loan banks.
Both CEOs - Fannie's Daniel Mudd and Freddie's Richard Syron - have lost their executive positions and mammoth salaries although it appears that each has agreed to stay on to assist in an orderly transition.
The conservatorship is open-ended in terms of time. The conservator alone will make the determination that the companies have returned to a safe and solvent condition.
MORTGAGE RATES HEADING LOWER? While it is yet to be determined the full extent that this take over will have on the housing market. This latest move from the government should help borrowers looking to refinance or purchase a home, as interest rates on conventional loans will decrease.
The final numbers of how much this will affect interest rates is up in the air, but the average rate on a 30 year fixed loan will decrease from the national average of almost 6.5%, where rates stood when this action was taken.The government bailout is aimed at making mortgages easier to obtain and afford.
By shoring up the mortgage financing giants, they can continue buying mortgages from lenders and injecting much-needed cash into the system.
"Fannie Mae and Freddie Mac are crucial to turning the corner on housing," said Treasury Henry Paulson. "Therefore, the primary mission of these enterprises now will be to proactively work to increase the availability of mortgage finance. Our economy and our markets will not recover until the bulk of this housing correction is behind us."
However, the news is not all good. As foreclosures and delinquencies are at all-time highs, Fannie and Freddie are expected to maintain - if not ratchet up - tighter lending standards. And the fees they have introduced for borrowers with weaker credit histories won't go away anytime soon.
When looking at mortgage rates that borrowers pay we must realize that they are dependent on the yields that investors demand when buying mortgage-backed securities from Fannie and Freddie.
Investors' doubts about the companies' viability have sent interest rates on those securities soaring. Despite regulators' July promise that they would step in to save the mortgage companies, investors are still demanding rates of 2.25% to 2.45% above Treasuries. Historically, the spread has been 1.25%.
With the government now taking over the companies and minimizing the risk associated with their debt, investors may be willing to ease off their need for higher rates.
DON'T WAIT - THINGS COULD CHANGE AGAIN As with many recent plans unveiled by the government, there is no telling where the mortgage and housing market will move in the near future. If more negative news were to come to pass then the drop in interest rates could be a short term event. Therefore, if you were waiting for lower interest rates, now is the time to act. As these lower interest rates could potentially only be a short term reality.
Information obtained courtesy of Bill Kamboukos and Carlos Felix of Strategic Mortgage
Treasury Secretary Henry Paulson announced that the federal government had taken over Freddie Mac and Fannie Mae. The long term effects of the overall housing market are up in the air, but here is what is known regarding this plan so far. There may be some positive effects to interest rates from this take over.
FANNIE & FREDDIE TAKE OVER
The two mortgage giants are now operating in a government conservatorship that will be administered by the new Federal Housing Finance Agency (created under the same Congressional authority that authorized the Treasury Department to shore up Freddie and Fannie. James Lockhart, former director of the Office of Federal Housing Enterprise Oversight which had responsibility for the two government sponsored entities (GSEs) is the new director of the Finance Agency.
The Conservator will control and direct the operation of the Company and will have all the powers formerly held by the shareholders, directors, and the officers of the Company and conduct all business, collect all money due to the company, preserve the assets and property of the company, and contract for any assistance necessary.
In return for providing funds to guarantee their debt the Treasury Department will immediately receive $2 billion in preferred stock that will pay a 10 percent dividend. $1 billion of the stock will come from each of the two companies and the Conservatorship will purchase additional stock, perhaps as much as $100 billion worth, if the GSE's capital reserves fall below an agreed upon level. This preferred stock will take president over any claims by holders of common or the existing preferred stock.
According to Secretary Paulson, the GSEs will modestly increase their mortgage backed securities portfolios through the end of next year "through prudent mortgage purchases" and will then reduce those holdings by 10 percent per year after 2009. The portfolios shall not exceed $850 billion for each company. An Associated Press article quoted Mark Zandi, chief economist for Moody's Economy.com, as saying this will effectively make the federal government the nation's mortgage lender.
It appears that Treasury is primarily interested in protecting holders of GSE debt. This class of creditors includes many large investment companies and a number of foreign governments.
The Treasury Department is establishing a new secured lending credit facility which will be available to the two GSEs and to Federal Home Loan banks.
Both CEOs - Fannie's Daniel Mudd and Freddie's Richard Syron - have lost their executive positions and mammoth salaries although it appears that each has agreed to stay on to assist in an orderly transition.
The conservatorship is open-ended in terms of time. The conservator alone will make the determination that the companies have returned to a safe and solvent condition.
MORTGAGE RATES HEADING LOWER? While it is yet to be determined the full extent that this take over will have on the housing market. This latest move from the government should help borrowers looking to refinance or purchase a home, as interest rates on conventional loans will decrease.
The final numbers of how much this will affect interest rates is up in the air, but the average rate on a 30 year fixed loan will decrease from the national average of almost 6.5%, where rates stood when this action was taken.The government bailout is aimed at making mortgages easier to obtain and afford.
By shoring up the mortgage financing giants, they can continue buying mortgages from lenders and injecting much-needed cash into the system.
"Fannie Mae and Freddie Mac are crucial to turning the corner on housing," said Treasury Henry Paulson. "Therefore, the primary mission of these enterprises now will be to proactively work to increase the availability of mortgage finance. Our economy and our markets will not recover until the bulk of this housing correction is behind us."
However, the news is not all good. As foreclosures and delinquencies are at all-time highs, Fannie and Freddie are expected to maintain - if not ratchet up - tighter lending standards. And the fees they have introduced for borrowers with weaker credit histories won't go away anytime soon.
When looking at mortgage rates that borrowers pay we must realize that they are dependent on the yields that investors demand when buying mortgage-backed securities from Fannie and Freddie.
Investors' doubts about the companies' viability have sent interest rates on those securities soaring. Despite regulators' July promise that they would step in to save the mortgage companies, investors are still demanding rates of 2.25% to 2.45% above Treasuries. Historically, the spread has been 1.25%.
With the government now taking over the companies and minimizing the risk associated with their debt, investors may be willing to ease off their need for higher rates.
DON'T WAIT - THINGS COULD CHANGE AGAIN As with many recent plans unveiled by the government, there is no telling where the mortgage and housing market will move in the near future. If more negative news were to come to pass then the drop in interest rates could be a short term event. Therefore, if you were waiting for lower interest rates, now is the time to act. As these lower interest rates could potentially only be a short term reality.
Information obtained courtesy of Bill Kamboukos and Carlos Felix of Strategic Mortgage
Saturday, September 6, 2008
Canadians Buying Up the Valley?
According to many articles out there, Canadians are still in a frenzy to purchase American Homes. The Valley homes are in a perfect location, the weather is great and many seek to own property where there is great weather, golf and plenty of other desirable activities.
Since Valley Homes are in such a high supply, it may take sellers a little extra effort to attract buyers attention.
Here are some tips:
List your home with an agent who does advertising to Canadian Buyers.
Throw in furniture and kitchen supplies, many Canadian buyers are looking for second homes or rental properties and including these things could be a bonus, so they don't have to go out and rebuy everything.
Formal Spaces are a plus. Play up areas in your photos including formal living and dining rooms.
Light is encouraging! Canada is often dark in the winter... make sure you pull back your curtains or blinds and let natural light shine through.
Offer seller financing. Many Canadians look to American financing to purchase a home, but the do not always find they will get the best deal, often large down payments are required, appeal to the buyer that would buy, if they didn't have to put so much down. Lease purchases are coming back into play in this market.
Have your agent be on the lookout for large investment companies who are seeking to buy up inexpensive housing in quantities to turn around and rent to winter visitors!
Call, email or respond with any questions!
Since Valley Homes are in such a high supply, it may take sellers a little extra effort to attract buyers attention.
Here are some tips:
List your home with an agent who does advertising to Canadian Buyers.
Throw in furniture and kitchen supplies, many Canadian buyers are looking for second homes or rental properties and including these things could be a bonus, so they don't have to go out and rebuy everything.
Formal Spaces are a plus. Play up areas in your photos including formal living and dining rooms.
Light is encouraging! Canada is often dark in the winter... make sure you pull back your curtains or blinds and let natural light shine through.
Offer seller financing. Many Canadians look to American financing to purchase a home, but the do not always find they will get the best deal, often large down payments are required, appeal to the buyer that would buy, if they didn't have to put so much down. Lease purchases are coming back into play in this market.
Have your agent be on the lookout for large investment companies who are seeking to buy up inexpensive housing in quantities to turn around and rent to winter visitors!
Call, email or respond with any questions!
Thursday, September 4, 2008
How to Buy a Great Home.. The Easy Way!
How to Avoid the 10 Most Common Mistakes.
Buying a home can be an overwhelming experience. You may encounter a roller coaster of emotions while searching for the right house to call home. For most of us, a home purchase is the biggest investment we will ever make. The emotions associated with purchasing a home can often cloud your judgment. Don’t worry! It will all work out.
Most people who purchase a home do not do much research before their purchase if they do any research at all. Doesn’t it make sense to make your choice after first being informed? But where do you get all the information you need? Don’t worry this little guide will help you avoid making the 10 most common and crucial mistakes.
Inspect, Inspect, Inspect- Although a home inspection is optional and typically paid for by the buyer, this money could be the most important $200-350 you will ever spend! Order a home inspection by a professional. Go over the report thoroughly. Review the restrictions (CC&R’s), By-Laws, and Association Fees with your agent. Be comfortable that you can live with any rules and regulations placed on the property.
Imagine the Property Vacant-Your furnishings will be the ones filling this new home. Don’t let current beautiful features, furniture or disliked features or furniture sway your decision to buy the home or not, they will leave with the owner.
Income + Lifestyle=Mortgage Payment- Sit down with your lender and real estate agent and honestly discuss your income level and living expenses. Take into account future considerations, children, add-ons, amenities, and fix ups.
View Several Homes- See at least 5-10 properties with your agent. Don’t move too slowly but don’t move on the first property you see. With your agent’s help you should be able to view enough properties to get a good overall perspective of the market. When you find the right home for you all the legwork will be worth it.
Utilize Your Team- By aligning yourself with the right real estate professional you will have an entire team at your disposal. Utilize your lender, title rep and agent. They are all working hand in hand for your benefit. Explore all your options.
Be Colombo- Check out all the costs and expenses before your 10 day inspection period is up. Utilities, taxes, insurance, maintenance and homeowner association dues if applicable. A good agent will make sure all the utilities (gas, electricity, and water) are on during your walk-through so you can inspect everything in working order. ASK LOTS OF QUESTIONS.
Do a Final Walk Through-Visit the property before closing to make sure there are no surprises. Be sure the property was in the same condition as when you wrote the contract on it.
Plan for Flexibility- Closing dates are not written in stone. Allow for flexibility and have a backup plan. If you or the sellers need a little more time to conclude the final arrangements, don’t let these delays upset or frustrate you. These types of circumstances are not uncommon in a real estate transaction.
If It’s Not In Writings, It Doesn’t Exist- All promises and discussions must be in writing! Don’t make any assumptions or believe any assurances. Even the best intentions can be misinterpreted. A good agent will keep an ongoing log in writing of all discussions and get the seller’s written approval on all agreements.
Loyalty Breeds Loyalty-Be open, honest and up front with your team. Hard feelings and disloyalty will cause headaches, delays or may even keep you from getting into the home you worked so hard to find. Take the time to select the right team in the beginning and your home p0urchase will be pleasing and memorable experience.
Our team looks forward to helping you find the right house to call HOME!
Buying a home can be an overwhelming experience. You may encounter a roller coaster of emotions while searching for the right house to call home. For most of us, a home purchase is the biggest investment we will ever make. The emotions associated with purchasing a home can often cloud your judgment. Don’t worry! It will all work out.
Most people who purchase a home do not do much research before their purchase if they do any research at all. Doesn’t it make sense to make your choice after first being informed? But where do you get all the information you need? Don’t worry this little guide will help you avoid making the 10 most common and crucial mistakes.
Inspect, Inspect, Inspect- Although a home inspection is optional and typically paid for by the buyer, this money could be the most important $200-350 you will ever spend! Order a home inspection by a professional. Go over the report thoroughly. Review the restrictions (CC&R’s), By-Laws, and Association Fees with your agent. Be comfortable that you can live with any rules and regulations placed on the property.
Imagine the Property Vacant-Your furnishings will be the ones filling this new home. Don’t let current beautiful features, furniture or disliked features or furniture sway your decision to buy the home or not, they will leave with the owner.
Income + Lifestyle=Mortgage Payment- Sit down with your lender and real estate agent and honestly discuss your income level and living expenses. Take into account future considerations, children, add-ons, amenities, and fix ups.
View Several Homes- See at least 5-10 properties with your agent. Don’t move too slowly but don’t move on the first property you see. With your agent’s help you should be able to view enough properties to get a good overall perspective of the market. When you find the right home for you all the legwork will be worth it.
Utilize Your Team- By aligning yourself with the right real estate professional you will have an entire team at your disposal. Utilize your lender, title rep and agent. They are all working hand in hand for your benefit. Explore all your options.
Be Colombo- Check out all the costs and expenses before your 10 day inspection period is up. Utilities, taxes, insurance, maintenance and homeowner association dues if applicable. A good agent will make sure all the utilities (gas, electricity, and water) are on during your walk-through so you can inspect everything in working order. ASK LOTS OF QUESTIONS.
Do a Final Walk Through-Visit the property before closing to make sure there are no surprises. Be sure the property was in the same condition as when you wrote the contract on it.
Plan for Flexibility- Closing dates are not written in stone. Allow for flexibility and have a backup plan. If you or the sellers need a little more time to conclude the final arrangements, don’t let these delays upset or frustrate you. These types of circumstances are not uncommon in a real estate transaction.
If It’s Not In Writings, It Doesn’t Exist- All promises and discussions must be in writing! Don’t make any assumptions or believe any assurances. Even the best intentions can be misinterpreted. A good agent will keep an ongoing log in writing of all discussions and get the seller’s written approval on all agreements.
Loyalty Breeds Loyalty-Be open, honest and up front with your team. Hard feelings and disloyalty will cause headaches, delays or may even keep you from getting into the home you worked so hard to find. Take the time to select the right team in the beginning and your home p0urchase will be pleasing and memorable experience.
Our team looks forward to helping you find the right house to call HOME!
Tuesday, September 2, 2008
HOPE NOW
Troubled homes are now getting more help from HOPE NOW, an organization aimed as a homeowner aid program. Hope Now said that 192,000 boworrows were helped out of their current troubled home loan through mortgages being adjusted or using repayment programs. Hope Now chief Faith Schwartz said that the pace of prevention for foreclosures is likely to accelerate in upcoming months.
For more information regarding this homeowner aid program please call
1-888-995-4673
For more information regarding this homeowner aid program please call
1-888-995-4673
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