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Monthly Archives: January 2012

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Owning vs. Renting

Your Guy for That Tuesday, January 31st, 2012 No Comments

Did you know that you can now own a home for almost the same amount as you pay in rent? Even better, owning a home has tax and equity benefits that may put money in your pocket! So don’t feel trapped within the walls of a house or apartment that doesn’t feel like yours. Check out the scenario below and see if you too could become a home owner.
Based on a $100,000 loan amount, taxes and insurance included via escrow account. Based on an annual rent increase of 5%. Average tax savings over 30 years is $964*

Years

Rent Payment

Mortgage Payment

Monthly Difference

Yearly Tax Savings

1

$800

$760

+40

$1540

2

$840

$760

+80

$1516

3

$882

$760

+122

$1492

4

$926

$760

+166

$1466

5

$972

$760

+212

$1439

6

$1021

$760

+261

… Continue Reading Owning vs. Renting

Posted in Buyer Tools, First Time Homebuyers, Mortgage News, Real Estate

FHA Contemplating Reduced Seller Paid Concessions

Your Guy for That Monday, January 30th, 2012 No Comments

Recently, FHA released a letter proposing that the maximum allowable seller concessions be reduced from the current 6% limit to something less. FHA is contemplating this change to “better manage risk” as they feel the current level exposes the FHA and borrowers to excess risk by creating an incentive that inflates the appraised value. FHA first mentioned this as a possibility all the way back on July 15, 2010. After bringing up the possibility of such a reduction a full year and a half ago, nothing has been heard from FHA again on the subject, until now. Reducing how much of the buyer’s costs that the seller can pay at closing would be a major blow to the real estate industry. Reducing this limit from 6% to say 3% would require most FHA buyers to bring more money to the table, to the tune … Continue Reading FHA Contemplating Reduced Seller Paid Concessions

Posted in Buyer Tools, FHA, First Time Homebuyers, Mortgage News, News & Reports, Real Estate

Good Economic News Brings Higher Mortgage Interest Rates

Your Guy for That Friday, January 27th, 2012 No Comments

An improving US economic outlook was negative for mortgage rates over the last week.  Reduced concerns about Europe also caused a partial reversal in the “flight to safety” trade.  As a result, mortgage rates ended the week higher.
 
Early in the month, the December Employment report showed a larger than expected increase of 200K jobs, and the Unemployment Rate continued to move lower.  Last week, Weekly Jobless Claims fell to the lowest level since April 2008.  The labor market is one of the most important factors in the health of the economy, and many investors now view the outlook as brighter than it has been since the financial crisis began.  If this is the case, it will be great news for the economy, and job gains will increase the willingness and the ability of people to purcha… Continue Reading Good Economic News Brings Higher Mortgage Interest Rates

Posted in Buyer Tools, First Time Homebuyers, Interest Rates, Mortgage News, Real Estate

January 2012 Interest Rate Update

Your Guy for That Wednesday, January 25th, 2012 No Comments

Mortgage rates continued to push historic lows in November, dropping another .08 points, to 3.99% for a 30-year fixed mortgage. “Rates on 30-year fixed mortgages have been at or below 4 percent for the last eight weeks and now are almost 0.9 percentage points below where they were at the beginning of the year, which means that today’s homebuyers are paying over $1,200 less per year on a $200,000 loan,” said Frank Nothaft, Vice President of Freddie Mac.
… Continue Reading January 2012 Interest Rate Update

Posted in Buyer Tools, Fannie Mae, Freddie Mac, Interest Rates, Mortgage News, Real Estate

Why Winter Listings Can Bring Fast Sales

Your Guy for That Tuesday, January 24th, 2012 No Comments

If one of your New Year’s resolutions is to sell your home, here are a few things to keep in mind:
Although the traditional home-buying season starts in the spring, here are some reasons why listing your home now, rather than waiting, could prove to be a smart decision.

On average, the number of home sales in January drops almost by half from the previous year’s peak. A house that is priced right and staged well will stand out even more with less competition. 
Lenders, home inspectors, movers, and other vendors also see a seasonal dip in transactions.  This could mean a quicker, easier, and possibly cheaper time to buy, sell, and move.

Even if you’re not ready quite yet, now is a great time to start the conversation with your local real estate agent. He or she can give you po… Continue Reading Why Winter Listings Can Bring Fast Sales

Posted in Real Estate, Sellers

January 2012 Month's Supply Inventory Report

Your Guy for That Monday, January 23rd, 2012 No Comments

 With increased levels of sales, the inventory of homes on the market continued to decrease, falling by 5.8% in November to 2.58 million homes available for sale, or an equivalent of a seven month supply at the current sales pace. This positive sign of increasing sales and lower inventories are keeping the housing market on track for stabilizing home prices and a stronger housing sector…. Continue Reading January 2012 Month's Supply Inventory Report

Posted in News & Reports, Real Estate

January 2012 Home Price Report

Your Guy for That Thursday, January 19th, 2012 No Comments

While median home prices in November rose to $164,200 from $162,500 in October, they are down 3.5% from a year ago. David Stiff, chief economist at Fiserv, stated, “Housing affordability has improved dramatically because of declines in both prices and mortgage interest rates. The monthly mortgage payment for a median-priced single-family home is now $700, compared to $1,140 in 2006—a decline of nearly 40%.” (Based on 2011 Q2 figures)… Continue Reading January 2012 Home Price Report

Posted in News & Reports, Real Estate

Mortgage Insurance Tax Break Gone

Your Guy for That Thursday, January 19th, 2012 No Comments

On Dec 31st, Congress let 58 tax code benefits expire, including credits for home energy improvements, credits for builders of energy-efficient new houses, and home buyer tax deductions for mortgage insurance. The mortgage insurance deduction has been a key mortgage financing benefit in place since 2007 which benefitted home buyers with income of $110k per year or less. Combined with the new fees they are imposing on Conventional loans this Spring, Congress continues to increase the costs of homeownership rather than reduce them! It should be noted that Congress still has the power to reauthorize all or some of the write-offs retroactively this year, but the current political atmosphere raises doubts about that happening. Its time to let our elected representatives know how we feel!… Continue Reading Mortgage Insurance Tax Break Gone

Posted in Mortgage Insurance, Mortgage News, News & Reports

January 2012 Home Sales Report

Your Guy for That Wednesday, January 18th, 2012 No Comments

Sales among existing homes rose in November by a seasonally adjusted 4%, to 4.42 million units up from 4.25 million in October, and are 12.2 percent above last year at this time. Lawrence Yun, chief economist for NAR said, “Sales reached the highest mark in 10 months and are 34 percent above the cyclical low point in mid-2010 – a genuine sustained sales recovery appears to be developing.”
… Continue Reading January 2012 Home Sales Report

Posted in News & Reports, Real Estate

Fannie Mae & Freddie Mac Increasing Fees

Your Guy for That Friday, January 13th, 2012 No Comments

Significant news from Fannie Mae and Freddie Mac last week that you may have heard something about.  Most of the reports seemed a bit confusing though, so here is some further clarification.  Fannie Mae and Freddie Mac announced a “guarantee” fee increase of 10 basis points to be effective April 1.  This fee is the result of a Congressional vote and as charged by the newly created Federal Housing Finance Agency, and its sole purpose is to extend the payroll tax cut.  What does extending the payroll tax cut have to do with the mortgage business you may ask?  Well, basically nothing.  The additional revenue raised by this fee increase will pass directly to the Treasury to pay for the tax cut and not be retained by Fannie Mae nor Freddie Mac to build reserves and create healthier agenci… Continue Reading Fannie Mae & Freddie Mac Increasing Fees

Posted in Fannie Mae, Freddie Mac, Interest Rates, Mortgage News, News & Reports, Real Estate
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