November 7th, 2011

The bond market closed last week selling +116 bps up, pushing mortgage pricing and rates down for the second consecutive week. Even though October was a great month for stocks and a bad month for interest rates, the past couple weeks have seen rates improve. The US economy continues to show signs of improvement, but the weight on the market is the continuing European debt crisis. Many investors are still seeking the security of US treasuries, which is helping keep interest rates low at the present time.

The FED met last week and is taking a wait and see approach. They are not taking action at the present time and letting the market takes it’s course.

Currently rates are very close to the historic lows we saw in August 2011. This week is shaping up to be a relatively quiet week with a lack of significant financial data coming into the market. Of course with the happenings in Europe, things can change very quickly if new information comes out to stir up the market.

I am really encouraging borrowers to seriously look at ARM loans right now. 5/1 and 7/1 ARMs are pricing very good right now, and if you plan on selling in 5 or 7 years, these are great products that allow you to get the best rate/payment available on the market.

Below are rates available paying a point or less:

30 year fixed: 4% paying .83 points, 4.25% paying 0 points

20 year fixed: 3.75% paying 1 point, 4% paying 0 points

15 year fixed: 3.375% paying .63 points, 3.625% paying 0 points

5/1 ARM: 2.5% paying .78 points; 2.75% paying 0 points

7/1 ARM: 2.875% paying .69 points, 3.125% paying 0 points

30 year fixed High Balance Loan: 4.375% paying .75 points, 4.75% paying 0 points

30 year fixed FHA: 3.75% paying .54 points, 3.99% paying 0 points

15 year fixed FHA: 3.375% paying .66 points, 3.625% paying 0 points

30 year fixed VA: 3.75% paying 0 points

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

Mortgage Rates Improve Again – November 7th, 2011

October 31st, 2011

Mortgage rates closed last week the same as they opened – no movement up or down. Halloween marked a far different story. On Halloween, the bond markets traded + 84 bps – pushing mortgage rates and pricing significantly lower.

The long term outlook still indicates a bearish market where rates look likely to rise. Most experts recommend locking in pricing on any days with improvement.

Below are rates available today paying a point or less:

30 year fixed: 4% paying 1 point, 4.25% paying 0 points

20 year fixed: 3.75% paying 1 point, 4% paying 0 points

15 year fixed: 3.375% paying .85 points, 3.75% paying 0 points

5/1 ARM: 2.5% paying .87 points; 2.875% paying 0 points

7/1 ARM: 2.875% paying .91 points, 3.125% paying 0 points

30 year fixed High Balance Loan: 4.375% paying .69 points, 4.625% paying 0 points

30 year fixed FHA: 3.75% paying .65 points, 3.99% paying 0 points

15 year fixed FHA: 3.375% paying 1 point, 3.75% paying 0 points

30 year fixed VA: 3.75% paying 0 points

Mortgage Rates Improve With Halloween Bond Rally

October 24th, 2011

Mortgage rates improved slightly last week with the bond market closing + 28 bps on the week. We are still seeing a lot of volatility to in the markets where rates/costs can change a lot in a very short period of time.

My recommendation is to lock in pricing if you looking into a mortgage. The stock market is gaining momentum and I think rates will rise during the last quarter of 2011. In the 4th quarter of 2010, mortgage rates went from 4% to 4.75% in a very short period of time. While I don’t see that much of a change coming, I do feel that mortgage rates will continue to slowly move upwards.   

Below are rates available today paying a point or less:

30 year fixed: 4.125% paying 1 point, 4.375% paying 0 points

20 year fixed: 3.875% paying .74 points, 4.25% paying 0 points

15 year fixed: 3.5% paying .74 points, 3.875% paying 0 points

5/1 ARM: 2.5% paying .88 points; 2.875% paying 0 points

7/1 ARM: 3% paying .59 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4.5% paying 1 point, 4.875% paying 0 points

30 year fixed FHA: 3.875% paying .69 points, 4.125% paying 0 points

15 year fixed FHA: 3.625% paying .85 points, 3.875% paying 0 points

30 year fixed VA: 3.75% paying .6 points, 3.99% paying 0 points

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, VA mortgages, FHA mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

MORTGAGE RATES IMPROVE:

“What goes up must come down“… a common phrase that fits many aspects of life. Today, it relates to the mortgage industry as the Department of Housing and Urban Development recently dropped the maximum loan amounts for FHA loans.

The maximum loan amounts for FHA loans are determined by an evaluation of home values, and the limit is not a flat rate like the $417,000 mark set for single family homes on conventional loans. FHA limits are set on a county-by-county basis, and you can search for those limits for every state and county using the link below:

https://entp.hud.gov/idapp/html/hicostlook.cfm

Why the reduction in the limit? During the housing boom, home values went up. When prices kept going up, HUD increased the maximum loan amount. Now that home values have decreased, so has the FHA limit.

For the majority of the Atlanta metro area, the maximum FHA mortgage limit for a single family residence decreased from about $346,000 to $320,000. That is roughly a 7% decrease. The one Atlanta metro area exception of this drop is Hall County whose mortgage limit fell all the way to $271,000.

In the grand scheme of things (at least in the Atlanta metro area), this isn’t an earth-shattering change. That may not be the case across the U.S (depending on your county), but it isn’t like the drop in the FHA mortgage limit has fallen by the same percentage as housing prices across the United States. For the most part, the mortgage limit change simply reflects current events in the housing market.

To find out more about your county, use the link provided in this post or contact your local mortgage consultant. Buying or refinancing in Georgia? I can help you get started on your new loan. Contact me and we’ll take it from there.

October 17th, 2011

Last week saw a continuation of the stock market rally from the week before. Stocks were trading higher, increasing the flow of investments from bonds to stocks. The bond market closed -75 bps down – which should have pushed rates a little bit higher. Even so, most rates have stayed the same. Of the 10 business days in October – the bond market has closed down 9 of them.

As of the writing of this email on Monday morning, the stock market is trading down over 100 points – and the bond market is trading up + 42 bps. This should help regain some of the losses from last week. This week should be another volatile week as many companies will be reporting their 3rd quarter earnings.

Below are rates available paying a point or less:

30 year fixed: 4.25% paying .5 points, 4.375% paying 0 points

20 year fixed: 3.875% paying .9 points, 4.25% paying 0 points

15 year fixed: 3.5% paying .74 points, 3.875% paying 0 points

5/1 ARM: 2.75% paying .7 points; 3.5% paying 0 points

7/1 ARM: 3.125% paying .69 points, 4% paying 0 points

30 year fixed High Balance Loan: 4.5% paying .8 points, 4.875% paying 0 points

30 year fixed FHA: 3.75% paying .3 points, 3.875% paying 0 points

15 year fixed FHA: 3.375% paying .7 points, 3.75% paying 0 points

30 year fixed VA: 3.75% paying .2 points, 3.875% paying 0 points

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, VA mortgages, FHA mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

Today’s Mortgage Rates

October 11, 2011

October 2011 has been a great month for the stock market and a bad month for interest rates. The DOW JONES average is up 500 points in October. This recent surge in optimism has taken investors out of the safety of the bond market and into the thriving stock market. The bond market closed last week down (-134 bps) – causing a large jump in mortgage rates/pricing.

The bond market passed certain technical indicators that could make it difficult for rates to drop back down to their record low levels. The stock market is not stable, but there has been some temporary resolutions to the debt crisis in Europe that could keep the market up for the time being.

My lock recommendation is to lock in pricing if a loan is beneficial to you. Many customers get caught waiting for a pie in the sky rate and end up losing a good rate that was beneficial to them. If I lock your loan and rates drop significantly, I can typically float down your rate. If they drop after your loan closes, you can always refinance again. There is no rule to the amount of times you can refinance.

Below are current rates available paying a point or less.

30 year fixed: 4.25% paying .7 points, 4.375% paying 0 points / 4.34% APR

20 year fixed: 4% paying .67 points, 4.375% paying 0 points / 4.12% APR

15 year fixed: 3.625% paying .8 points, 3.875% paying 0 points / 3.75% APR

5/1 ARM: 2.75% paying .67 points / 2.88% APR

7/1 ARM: 3.125% paying .55 points / 3.27% APR

30 year fixed FHA: 3.75% paying .7 points, 3.99% paying 0 points / 4.05% APR

15 year fixed FHA: 3.5% paying .8 points, 3.75% paying 0 points / 3.72% APR

30 year fixed VA: 3.75% paying .55 points, 3.99% paying 0 points / 4.05% APR

30 year fixed High Balance Loan: 4.5% paying .88 points, 4.875% paying 0 points / 4.61% APR

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, VA mortgages, FHA mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages and Jumbo Mortgages.

CLINE / 21321 East Ocotillo Road B105 / Queen Creek, AZ 85142

NMLS: 229993

Mortgage Rates Rise with Stock Market Rally.

I get that question a lot these days. “Should I buy a home?” It is a valid question to ask. Some may be concerned about the stability of their jobs. Others may be concerned about whether or not we’ve hit “the bottom” in regards to housing prices. I do understand the reasoning behind those concerns, but let’s look at it from another angle.

The chart above shows the correlation between purchasing power and home values. Currently, we are siting in one of the best periods for buying a home – low interest rates (purchasing power) with lower home values. This combination is very tempting, but still some are holding back. Why? It seems people feel rates are going to stay low forever. That isn’t the case. Interest rates are like stocks… sometimes they go up/down in price for unexpected reasons. For instance…

This time last year, interest rates were at the same point they are now. In the high 3′s. Then around the start of November, interest rates began to climb. Before the end of December (about a 6 week period), interest rates went from the high 3′s to the mid 5′s. It was an unexpected jump and put some people’s home buying/refinancing plans on hold.

What kind of a difference does that jump in rates make? If you qualified for a principal and interest payment of $1,000 each month, then you’d be able to purchase a home up to $250,000 with a 20% down payment while rates remain at their current levels. With rates in the mid 5′s, that same monthly payment of up to $1,000 would cause the purchase price to decrease to $220,000. That is a loss of $30,000 of purchasing power.

In short, the question you should be asking yourself is not “should I buy?,” but “what am I waiting on?” If you plan to remain in the area you are currently residing for the next few years, this is one of the best times ever to buy a home due to the combination of low rates and lower home values. If you are looking to purchase a home in the state of Georgia, I’d be glad to help you get started!

October 3rd, 2011

The beginning of last week started off bad for interest rates. After hitting their lowest levels ever on the previous Thursday, mortgage pricing took big hits on Friday, Monday and Tuesday. The stock market was up and the secondary bond market was down pushing mortgage rates higher.

Luckily, the higher interest rate levels did not last long. The bond market closed slightly higher on Wednesday and Thursday, and then really rallied on Friday. Overall on the week – the bond market closed Friday unchanged – (0 bps).

Below are current rates available paying a point or less.

30 year fixed: 3.75% paying .86 points, 3.875% paying 0 points

20 year fixed: 3.75% paying 0 points

15 year fixed: 3.25% paying .66 points, 3.375% paying 0 points

5/1 ARM: 2.5% paying .6 points, 2.75% paying 0 points

7/1 ARM: 2.75% paying .86 points, 3.125% paying 0 points

30 year fixed FHA: 3.75% paying 0 points

15 year fixed FHA: 3.25% paying 0 points

30 year fixed VA: 3.75% paying 0 points

30 year fixed High Balance Loan: 4.125% paying .88 points, 4.375% paying 0 points

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, VA mortgages, FHA mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages and Jumbo Mortgages

October 3rd, 2011 – 30 Year Fixed Rates Down to 3.75%

When it comes to short sales, likely you have heard things both good and bad about the process. In general, it is a good way to help a homeowner get out from under mortgage payments that you can no longer afford, without having a major negative impact on their credit score. If you live in the Scottsdale area or are looking to buy a home in the area, learn more about this process and the benefits offered to both buyer and seller.

In today’s economic climate, many homeowners are finding that they owe more on their home than what it is worth. Due to loss of income, unemployment, bankruptcy, divorce or other extenuating circumstances they can no longer pay their mortgage. If this describes you current financial situation, you are likely facing foreclosure, which is something you would rather avoid if at all possible. As Certified Distress Property Experts in Scottsdale, Arizona, we can help you negotiate the short sale process with your lender, so that you can sell your home for less than you owe to a willing buyer.

Scottsdale, Arizona is a very desirable city where home prices may be considered out of reach, but Short Sales and Bank owned properties have lowered prices and this could be a great time to get into the Scottsdale housing market. The short sale process allows buyers to purchase their dream home for considerably less money, which is ideal for today’s home buyer. We specialize in Scottsdale real estate and know the values of the homes in this area, and can easily find a property that fits within the price range of the buyer’s requirements.

If you are a homeowner trying to get out from under your mortgage, you may wonder why a lender would take an amount less than what you owe on your home. Lenders would generally rather have some money on the property, as they are not in the business of owning or managing property. While foreclosure may drop your credit score by as much as 250 points, the short sale process generally drops it by only 100 points. You can also purchase another home of your own quicker, while foreclosure usually results in a wait of 5 to 7 years or longer.

Buyers looking for a home in the Scottsdale area will find that short sales allow them to purchase a beautiful home for a price they can afford. For example, a home may be worth $500,000.00 or more, but the lender may be willing to settle for $375,000. 00. This saves you a substantial amount of money, and you get a lot more home for your money.
Either way, the process is an involved one that most people do not want to enter without the advantage of a Scottsdale real estate professional on their team. As Certified Distressed Property Experts, we can negotiate and handle the bulk of the work, making the process both easier and less time consuming. If you are looking to buy or sell in Scottsdale, Arizona contact a reputable Certified Distressed Property Expert like us to make the entire process quick and seamless.

Stephen Proski

RE/MAX Achievers

Scottsdale, Arizona

602-620-2164

office@az-homes4u.com

A Short Sale in Scottsdale, Arizona Solves Problems For Buyers And Sellers Alike

The bond market closed last week down - 94 bps pushing mortgage rates and pricing higher. This move higher was due to a great week on Wall Street where the stock market closed higher every day. There has been some pull back on Monday with the stock market being down, pushing rates back to lower levels. The bond market closed Monday up + 55 bps pushing mortgage rates and pricing back down to the low levels at the beginning of last week.

Below are current rates available paying a point or less.

30 year fixed: 3.875% paying 1 point, 4.125% paying 0 points

20 year fixed: 3.75% paying 0 points

15 year fixed: 3.25% paying 0 points

5/1 ARM: 2.625% paying .6 points, 2.875% paying 0 points

7/1 ARM: 2.875% paying .8 points, 3.25% paying 0 points

30 year fixed FHA: 3.75% paying 0 points

15 year fixed FHA: 3.25% paying 0 points

30 year fixed VA: 3.75% paying 0 points

30 year fixed High Balance Loan: 4.125% paying .85 points, 4.375% paying 0 points

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, VA mortgages, FHA mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages and Jumbo Mortgages.

Mortgage Rates Remain at Record Lows

The bond market closed last week up +72 basis points, fueled mainly by a strong surge on Friday of +47 basis points. Friday the monthly job reports came out and the news wasn’t good. August had no new job creation. There are a reported 58,000 less jobs in August than there were in June and July. The unemployment rate remained unchanged at 9.1%.

Until the housing foreclosure and short sale problem starts shoring up, the economy will continue to struggle. Expect another eventful week coming up after Labor Day culminating in a “major address” by President Obama on Thursday. The President is supposed to outline new initiatives to get the economy back on track. The market will likely over react to the speech, pushing rates one way or the other.

I still hold that rates will not go lower than they were about 2-3 weeks ago. Below are current rates available paying a point or less.

30 year fixed: 4% paying .9 points, 4.25% paying 0 points

20 year fixed: 3.75% paying .45 points , 3.875% paying 0 points

15 year fixed: 3.25% paying .6 points, 3.375% paying 0 points

5/1 ARM: 2.75% paying .4 points, 2.875% paying 0 points

7/1 ARM: 2.875% paying .8 points, 3.125% paying 0 points

30 year fixed FHA: 3.75% paying .175 points, 3.875% paying 0 points

15 year fixed FHA: 3.25% paying 0 points

30 year fixed VA: 3.75% paying .1 points, 3.875% paying 0 points

30 year fixed High Balance Loan: 4.375% paying .2 points, 4.5% paying 0 points

Mortgages for refinances and purchases in Arizona, California and Colorado.  Current interest rates for fixed loans, ARM loans, conforming loans, conventional loans, VA loans, FHA loans, HARP loans,  interest only loans, high balance conforming loans and jumbo loans.

Mortgage Rates Lower – Poor Job Reports.

Another wild week in the mortgage markets done and likely a new one beginning. The bond market closed last week (-50 bps) down, pushing mortgage rates and pricing higher. Luckily we had a late week rally, which reversed some of the damage done earlier in the week.

The FED reserve board chief, Ben Bernanke, spoke on Friday – stating that we are no longer in a recession, but the US economy is growing slower than expected. He stated that the FED would not utilize any more of it’s tools to stimulate the economy right now, but did not rule out the possibility of using them in the future.
Unless the market takes a big turn for the worse, or the FED prints more money to buy bonds – mortgage rates have likely reached the lowest levels they will go.

30 year fixed: 4.125% paying 1 point, 4.375% paying 0 points

20 year fixed: 3.875% paying .75 points , 4.125% paying 0 points

15 year fixed: 3.375% paying .6 points, 3.625% paying 0 points

5/1 ARM: 2.75% paying .45 points, 3% paying 0 points

7/1 ARM: 3% paying .9 points, 3.375% paying 0 points

30 year fixed FHA: 3.75% paying .95 points, 4% paying 0 points

15 year fixed FHA: 3.25% paying .1 points, 3.375% paying 0 points

30 year fixed VA: 3.75% paying .8 points, 3.99% paying 0 points

30 year fixed High Balance Loan: 4.375% paying .33 points, 4.5% paying 0 points

Today’s Interest Rates – mortgage pricing rises, Ben Bernanke speaks

While the true impact probably can’t be calculated or even recognized for years to come, we can at least review the events of the past two weeks. Have these events lived up to some of the potential results mentioned in a recent post?

Yes, some of them do. In fact, the events and news coming out of the financial markets over the past two weeks fall in one of two categories:

• Renewed fears of a double dip: It started the first business day after the downgrade when investors decided to “sell first and ask questions later.” Since then, Asian, European, and US markets have seen their stock values plummet as the world markets fear the impact of a potential second global recession. The losses were stemmed by some upbeat job news (for a change) in the US, but entering this week, the markets are still volatile.
• Interest rates are back down to historic lows: When stocks drop as they have, the typical response is for rates to also drop. Why? As money comes out of stocks, it moves into bonds and increases their value. As mortgage backed security bonds increase in value, interest rates decrease. That trend continued over the past couple of weeks, and interest rates for a 30 year fixed conventional mortgage are back to levels we saw in the fall of 2010-in the upper 3′s.

It has been quite a ride so far, and the ride isn’t over. Is this a taste of things to come OR just the initial knee jerk reaction? Honestly, who knows. The markets are so nervous and volatile, nothing would probably surprise me at this point.

With these events taking place in the US and global markets, how does it impact those looking to buy a home or refinance a mortgage. Easy answer… at least take time to explore the opportunity.

• If you are thinking about refinancing mortgage, I need only 5 minutes of your time to run numbers based on the info you know off of the top of your head. In 5 minutes, you’ll know if a refinance is worth exploring.
• Looking to buy a home? With interest rates at historic lows combined with home values at their lowest points in decades, there has not been a better time to buy a home. In as little as 10 minutes, we can go through the prequalification process so you can have an idea of how much home you can and should buy.

Either way, what are you waiting on? If the property is in Georgia, I will be glad to walk with you through the mortgage process. All you need to do is contact me to get started!

The market had another wild week – pushing rates up and down each day. The wild swings are becoming the new norm. What this means for you as a consumer is that your mortgage quote could change thousands of dollars in a very short period of time. That is the market that we are in – so as always, if you like the rate/costs – lock it in as soon as you can, as it may not be there for long.

The bond market closed last week 37 basis points higher, which in theory should have improved mortgage rates. Unfortunately it did not on all mortgage products and here is why. Rates go up quicker than they go down. What this means is that lenders are more willing to change their pricing higher when the bond market is down, then they are to offer better rates / pricing when the bond market goes up.

Rates are still great and near all time lows set in the 1950′s. Below is current pricing paying a point or less on a 30 day lock:

30 year fixed: 4.125% paying .83 pt, 4.375% paying 0 pts

20 year fixed: 3.875% paying .6 pts , 4.125% paying 0 pts

15 year fixed: 3.375% paying .45 pt, 3.625% paying 0 pts

5/1 ARM: 2.875% paying .7 pts, 3.125% paying 0 pts

7/1 ARM: for 3% paying 1 pt, 3.375% paying 0 pts

30 year fixed FHA: 3.875% paying .85 pts, 4.125% paying 0 pts

15 year fixed FHA: 3.25% paying .6 pts, 3.5% paying 0 pts

30 year fixed VA: 3.875% paying .7 pts, 4.125% paying 0 pts

30 year fixed High Balance Loan: 4.375% paying .32 pts, 4.5% paying 0 pts – ONLY AVAILABLE FOR A LIMITED TIME FOR VERY HIGH LOAN BALANCES

LAST CHANCE FOR HIGH BALANCE CONFORMING LOAN LIMITS:

The max high balance conforming loan limit has been $729,750 since the ECONOMIC STIMULUS PACKAGE of 2008. This max loan limit will be going down to 625,500 in the highest priced areas, and lower than that in the mid high balance priced areas.

You have to get these started now if you want to close before the deadline of September 30th, 2011.

So, you have decided to sell your home in Mercer County NJ- Awesome!  Whatever helped you make your decision, having an agent that is “With You Every Step of the Way!” is crucial because this is a BIG decision.

The day you have been waiting for is here…..drum roll, please…..The OFFER!  Now what?

Here are 9 tips to help you stay calm during negotiations and the offer:

Trust your Real Estate Agent: You hired your agent for a reason and his experience handling negotiations and contracts is impeccable. You can ask your agent questions and relax a little bit.  There’s no reason for you to feel pressure, you have an agent that is “With You Every Step of the Way!” is crucial. Feel free to ask him any questions you have, but don’t let the pressure of every minute detail overwhelm you.

Rest: We need to go on our normal routine- you know, eat, sleep and rest- refuel so that when the decision time arrives, you are ready!

Relax: This kind of goes hand in hand with Rest but it’s not quite the same.  Take your mind off any stressful situation so you will be ready for any challenge that heads your way.

Communicate: If you have concerns, communicate them- no one is a mind reader

Walk it off: Go for a walk in your neighborhood or by the park- this is a great way to clear your mind and truly beneficial!

Run the Numbers: Seeing the facts in black and white can help take emotion out of this business decision. Should you accept this offer? Is it too low? Do the math and know for sure.

Patience is a Virtue: This is something we all go through in life and selling your home can be a trying time so be patient.  Remember, the decision to sell your home was a big one and it is just as big for a buyer so if you have a counter-offer on the table, have some patience.  The answer will come soon.

Rashes are Not Welcome: This is not a time to make rash decisions. You want to be sure that this is the right deal and the right time.

Enjoy the Process: Yes, it can be stressful, but it can also be the doorway to your new life. Enjoy the process and remember, having an agent that is “With You Every Step of the Way!” makes the process even memorable so contact the Mike Carney Team today!

Wanting to buy a home and deciding to buy a home are two different things. The first is a desire or a dream. The second is commitment to achieve the goal. Do you want to buy, or have you decided to buy?

What are you planning when you think of purchasing real estate, whether it’s a house, condominium, cottage, or investment property? Is this something you’d like to do, but could be dissuaded from if it seems too hard, or your life becomes busy? Or, is this a goal you take on with determination to overcome barriers and maximize strengths?

If you are ready to commit to success, you are determined to replace wanting to buy with deciding to buy. Here are 10 tips to help you on the path to real estate ownership.

1. Decide who will facilitate your buy – The professional team you put together can make all the difference. You’re not looking for new friends, so concentrate on credentials and experience. Salespeople are trained to be personable, so if someone is likeable that’s nothing special. Their knowledge and ability to strategize on your behalf does matter. The real estate professional you select must be as convinced as you are that you can be successful and understand how to make success happen.

2. Decide when will you buy – Buying a home, cottage, or investment property is not something to rush into, but taking a long time does not necessarily make your choice a better one. A recent online survey by Canada Mortgage and Housing Corporation, the national housing agency, revealed that Canadians take, on average, 11 months to plan their purchase. That means sometimes the process takes longer than a year, and sometimes things happen more quickly. To facilitate a sound buying decision, project ahead three months at a time to see what external factors in your life and career might disrupt buying momentum, or add additional advantages to the timing. Possibilities of interest rate increases and price fluctuations are difficult to pinpoint for even the most informed experts, so prepare to respond to any shifts commonly predicted for your chosen location. Keep in mind, that if your Offer to Purchase were accepted today, you would probably not move in for 30 to 90 days depending on the sellers’ plans and yours. Tip: The more pressure you put on yourself to adhere to a specific move-in date, the less flexibility you’ll have in purchase negotiations regarding price and terms.

3. Decide where you will buy – Location is still the key factor in sustainable value and rate of appreciation over time. The best returns come from buying the best location you can afford—neighborhood and street, or condominium complex and floor. You can renovate or rebuilt the structure or unit, but you cannot move the land or condominium complex. Location matters. Spend time discussing your choice of housing, neighborhoods, and special features like in-law suites or separate apartments with your professional advisors before you start looking at properties.

4. Decide which you will buy – It’s not how many properties you view that will ensure success, but whether you see the property that best suits your needs, wants, and decision making. One strategy involves acting quickly with newly-listed properties, another stresses the hidden value in slow-to-sell real estate. You may decide to stay on alert for new listings in the best neighborhood and on the best street you can afford. Time invested in preparation will enable you to act quickly when the ideal property hits the market. If you decide on the alternate strategy that seeks purchase-price advantages with properties that do not show well, still search out the best location you can afford. Here, you’ll view tired or poorly-decorated condominium units or houses, and revisit with contractors and decorator to evaluate true potential.

5. Decide what you will buy – Stay on point and avoid getting carried away. Your agent will help keep you focused, but you need to be sure you know what features you want and need, and why. Does proximity to schools or public transportation matter? What will your home-based business require? Will an income-suite enable you to buy an even better location? Is this a fixer-up property that will build your financial strength, so you can eventually buy your goal property, or are you here for the long haul? Write your must-have list down and check it when you view properties and before you make an offer.

6. Decide what value you can add – Do you have skill with interior design or home renovation? Or, will you hire the expertise you need? Concentrate on improvements that increase functionality, affordability, comfort, and resale, not just changes in decor. What professional skills can you add to the search, analysis, or decision making?

7. Decide what buying will cost – Set a budget for the entire project, not just the mortgage. Your real estate professional can help prepare a full financial projection of costs. For more on mortgages, see “Mortgages: 7 Things You Don’t Want to Learn the Hard Way.”

8. Decide how you measure success – Short of having your Offer to Purchase accepted, how will you know how well you are progressing? What ongoing evaluation criteria does your real estate professional suggest? If you don’t track time and the properties you’ve seen, you may become overwhelmed with detail and confused by the continually changing real estate market. While you’re set on your decision to buy, interest rates, the economy, and many other variables may change. Focus is the key. Organization will ensure your success.

9. Decide what’s unique to your situation – What considerations or challenges must you take into account that may not be true for all buyers? Do you have a property to sell before you can buy? Do you have special mobility needs, or design features like higher ceilings or a detached garage that are important to your hobbies or business? Share this information with your real estate professional at the start, so they have the full picture of your needs.

10. Decide: What’s the point of buying? This decision must come first and stay first as you go. There are many great reasons for buying real estate, but what are yours? Not reasons you’ve been told to buy or think you should, but why you know you’re prepared to invest time and effort on the quest. When your point or purpose in buying is crystal clear, you can weigh the relative merits of the properties you view, and the many small decisions that must be made on the way to the first big step: Have you decided to make an offer?

Ironically, there are many people that think about owning a home and truly, you have to make the best possible decision for yourself and having an agent that is “With You Every Step of the Way!” is crucial.  If you are looking to purchase a home and make your home ownership dream a reality then contact the Mike Carney Team today….if you are thinking about owning a home and still aren’t quite sure then contact the Mike Carney Team and we can discuss your goals and see if making home ownership a reality is right for you.  Either way, the Mike Carney Team is on your side from start to finish so contact us today!

June was a record month for Arizona housing.  10,868 home sales occurred in June of 2011, surpassing the previous record of 10,252 units sold in June of 2005.

June was also a record month for home leases of Single Family Residences.  2,280 new leases were executed last month, beating the previous record of 2,002 leases in July of 2008.

Typically home sales and leases go in the opposite direction, but with all the short sales and foreclosures occurring – there are a lot of people changing residences. 

Arizona short sales also set a record, contributing to 2,734 sold units – up 33% from May.

We are still very much in a market fueled by investors.  41% of Single Family Residences sales were purchased in cash.  29% with conforming loans, 24% with FHA loans, 4% with VA loans, and 2% with others.

Lastly, the median home price in Arizona increased in June to 111,000 from 109,000 in May. 

(Arizona Housing statistics – breaking records – from Reggie Green @ Crossline Capital)

Licensed in Arizona, California and Colorado.

Even if you charge a higher rent because of a great location with a potentially higher return, you may find yourself struggling to keep tenants.

With the shift of the economy those areas or opportunities are not the norm and a higher rental rate could deter folks from renting and just open up the possibility to purchase a home in Mercer County NJ.

I’m not saying don’t charge a good rental rate but what I am saying is don’t make your rent too high or you will lose out on good tenants.  Make your investment in Mercer County NJ more successful by:

Charging a fare rental rate: Don’t charge a rate that is too high and certainly, don’t charge one that is too low- ask your knowledgeable real estate professional what rate you should be charging

Updating landscaping: This can add curb appeal and make your investment property more appealing to tenants

Off customer service- YES!  This is a business and if your tenant has issues, address them immediately and create options your tenant can live with

Keep your property looking it’s best and repair whatever is necessary.  Your property can look dynamite but if your roof leaks, who cares.

Prescreen your tenants- no one wants rift-raft or problems.  Be proactive and prescreen so you are aware of any issues a tenant may have had prior to renting or leasing.  That doesn’t mean you shouldn’t allow them in your property, it just means you are aware and can make a more informed decision.

It is all about motivating a tenant to choose your Mercer County NJ property. The fewer vacant days you have, the more income your property will generate. The happier your tenants are, the longer they will stay. When the economy turns down, they will be motivated to stay — even as other building owners attempt come to woo them away.

So, contact The Mike Carney Team, and have an Agent that’s “With You Every Step of the Way!

When purchasing a home in Mercer County, NJ, affordability is at a record high, yet home sales are lower than expected for these conditions. Limited access to credit, which is keeping many potential buyers on the sidelines, is partly to blame.

We continue to feel the pressure in the housing market with economic uncertainties weighing heavy and with unemployment on the rise and already over 9%, buyers are unwilling to dive into the housing market.

What does this mean if you are looking to buy a home in Mercer County, NJ?  It means there is a surplus of homes available and you can get a really good deal.  Investor and all-cash purchases are still very high. Investors made up 19 percent of all home purchases in June, up 6% from one year ago 2010. All-cash purchases was also up year-to-year, now at 29% of all sales from 24% one year ago in 2010.

So, if you are ready to jump into the Mercer County NJ housing market or just have questions, contact The Mike Carney Team, and have an Agent that’s “With You Every Step of the Way!”

Reggie Green – your source for mortgage loans in Arizona, California, and Colorado.  Conforming, FHA, VA, High balance conforming, Jumbo, etc.

“… if they could turn back time. If they could find a way…”

Well, they did find a way. Recently I blogged about changes private mortgage insurance (known as PMI) companies made to their guidelines for conventional loans. For all the details, see this post.

The short summary – in order to be approved for a loan with PMI, borrowers need 3 trade lines that are at least 12 months old (or over 12 months old when the account was closed).

This change wasn’t a deal breaker for my clients, it was just more annoying than anything else. As I said in another recent post, it is good to have options. If the PMI three trade line requirement was a problem, then I would be able to offer a program that would work. That is the advantage of working with multiple lenders who each have their own set of guidelines.

Now that the three trade line requirement is gone for some of the PMI companies, a great question to ask is “what is the new requirement?“

Basically, guidelines are going back to what they were prior to the three trade line requirement. For the most part, borrowers who have at least 3% down, a qualifying credit score, and one established trade line (a credit card for example) will qualify for a conventional loan with PMI.

That is fantastic news as it allows for more options for consumers who have a limited credit history from either getting a late start OR simply choosing to pay cash for most items during their life.

If you are looking to buy or refinance a home in Georgia within the next 12 months, now is a good a time as any to get started! I’d be glad to help you through the mortgage in process.

But good news is good news, so let’s celebrate. Take it away Cher…

There is so much information out there regarding mortgage rates, costs, etc., it is very easy to see why some consumers get confused about mortgage pricing.  This blog will attempt to explain to you mortgage pricing and how it applies to you and your clients.

WHAT IS THE FIRST QUESTION EVERY LOAN OFFICER GETS ASKED?

WHAT IS YOUR RATE?  is by far the most common thing a potential client says first.

Unfortunately, there is not a simple answer to this question.  As a mortgage loan officer, we can offer you a variety of different rates relative to the costs you want to pay.

The lower rates cost more and as we bring the rate higher, the closing costs go down.  For example, when putting together a quote for a customer, I do something like this:

30 YEAR FIXED AT 4.375% – costs $4,400

30 YEAR FIXED AT 4.5% – costs $2,300

30 YEAR FIXED AT 4.625% – costs $0

When deciding what rate works best for you, you are going to want to consider how long you will be in the loan.  If you plan on selling the home in 6 months, you want to keep your costs low because you don’t have the time to recoup the costs.  If you plan on staying in the loan for 30 years, typically it makes more sense to pay a bit more in costs at the beginning of the loan.

WHY DO LOWER RATES COSTS MORE?

Whether you realize it or not, your loan is almost always sold immediately after the loan is completed.

The reason higher rates cost less is because a lender is making a higher premium when selling your loan on the secondary market.  Thus they can charge you less and still be profitable.  A lender can also do a 0 cost loan.  They can do this by making enough on the sale to cover all third party charges like title, escrow, and appraisal and still be profitable.

WHY DO MORTGAGE COMPANIES DIFFER IN PRICING:

For the most part, mortgage rates and pricing should be similar if you are rate shopping.  If you are rate shopping and one company is vastly superior over the others, it may be to good to be true.

Even though rates / pricing are similar between companies, they will not be the same for a variety of different reasons.

1# – Each company has a different level of profit they are making on each loan.  Some companies make less on each loan, but strive to do a lot of volume.

Some companies try to make more on the loans they do fund, even though they may lose some business with rate shoppers.

A lot of times the profitability of each loan has to do with the lender’s overhead.  If you have a large company that does a lot of advertising, has health insurance for all of their employees, etc, your loan is typically going to be more expensive because you have to pay for these things somewhere.

2# – Loan officers have different pre-negotiated levels of compensation.  With the new lending laws that went into place in April 2011, each loan officer must have the same level of pricing on all loans.  This can only change when charging upfront fees.

For example, I make 1% on every loan I do.  Regardless of anything about the loan, if I fund the loan, I make 1%.  Some loan officers may have a negotiated price of 1.5%.  Some maybe 2%.

If a loan officer’s company prices similarly but I have a lower pre-negotiated rate of commission, I will be able to offer the better deal.

I hope this clears some of the confusion regarding mortgage pricing and makes you a more knowledgable consumer when shopping for a loan.

30 year fixed rates are now back to 4.375% with a portion of a point.  20 year fixed loans are back to 4.25%.  5/1 ARMS are down to 2.875%.

We are now in the last week of the FED purchasing mortgage backed securities program – QEII.  The market will now determine interest rates without the FED manipulating demand.

Overall, there is some pressure on mortgage rates right now.  The Feds Quantitative Easing measures are about to end, which could push rates a bit higher.  Overall, I don’t see rates going much higher or much lower from where they are right now for the foreseeable future. 

THE FORECLOSURE NUMBERS:   According to the US Foreclosure Market Report, foreclosure activity has decreased for the 8th straight month.

There are 3 foreclosure activities they consider in their report.  Notice of Default is when the mortgage company notifies the customer that they are in violation of their contract and they plan on foreclosing unless payments are brought back up to speed.  This can be given out after 3 months of late payments.  Foreclosures scheduled is when a home is scheduled to be taken back by the bank.  REO is when the bank takes back the home and it becomes part of the banks inventory.

From April to May:

Notice of Default rates went down by 7%

Foreclosures Scheduled went up by 3%

REOs went down by 4% 

Although the foreclosure activity has decreased, the results can be misleading.  Many lenders are delaying foreclosure proceedings for various reasons associated with their own process and procedures as well as market considerations in the area where the homes are being foreclosed in.  If they keep pumping more REOs into the market when their current inventory is high, it will push down the values of their existing inventory.

Also, even though the inventory of homes in the foreclosure process has decreased steadily over the past 6 months, the inventory of REOs is increasing.  This is because the amount of REOs being added to the market is outpacing the amount of REOs sold.  This points to a still struggling housing market where the demand is not on par with the supply. 

The states with the highest foreclosure rates in order are Nevada, Arizona, California, Michigan and Georgia.