Is that home a steal or overpriced?

This article courtesy of bankrate.com provides you with a simple formula to determine if the home you are looking at is overpriced or not. They use the price/rent ratio, which might help you figure out if the home your scoping out is a good deal or not.

The one true thing, I've seen in all my years of Real Estate is never just take the Realtors word for it. Always do your homework and ask for multiple options, unless it’s a specific type of house in a specific neighborhood, then your pretty much stuck.


SOURCE

Could we see 1% at the FED?

Rumors are starting to surface about the FED lowering the rate to 1%!! Not sure if this is true or not, but I think that it will be a good idea.

Will it affect mortgage rates? Not sure, most of the time when the FED lowers the rate, mortgage rates go up in the short term and lower in the long term. This time I expect the opposite to be true and you will see mortgage rates hit an all time low, before they start to climb back up. Either way, 2009 should produce a really wild market.

Story from Marketwatch

Up 71% and no it’s not your home value or 401K

Foreclosures are up 71% this quarter. That is an astonishing number. The article mentions that some of the hot spots are AZ, CA, and FL.

This quarter and next should be the end of the major spikes in foreclosures. Lending standards have been tighten for quite some time now and high LTV and risky loans have not been made for over a year.

Another stat that I read last year, was that in Oct. 2008 is the month when the most sub-prime ARMs come due and start to adjust. That means that the wave of bad sub-prime deals should be working it’s way through the system. I do also think that our government will step in after the election and help to curb some of these foreclosures.

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Real Estate is all about location…

Not all areas are on the decline in the US. This article posted on Yahoo, shows that some areas are still gaining values while others plunge.

Some of the areas where real estate is keeping value is Seattle, Des Moines, Denver and a few others.

The truth is that every city has pockets where Real Estate is still in demand. Do your homework before you buy it will help you to lower your risk.

Click here for the story

Fastest Selling Zip codes

This is a list of ten fastest selling Zip codes in America compiled by Business Week.

Click here for the story

Fannie and Freddie Mae News

With a open check book Fannie and Freddie Mae are now doing all they can to help people stay in their homes and bring stability back to the housing market. Both of these companies pledge to do what they can to help ease foreclosures.

At the end of the story they get in to mortgage interest rates and the thought that they might lower them. I hope this is the case because, it would help solve a lot of issues with the housing market. If every person had a chance to due a rate/term mortgage to 3%, they would have more income to spend on things, thus helping our economy.

I’m not in favor of helping out the people who are overextended and not helping out the people that keep their checkbooks in check. If we help one type person, we should help the other group of people.

Keep in touch with this news, because something will happen with in the next year!!

SOURCE

Reverse Mortgages 101

Great article on reverse mortgage basics for people that are over the age of 62. These mortgages due have some upside, but they come with some costs. I suggest reading this before you either take this option or are shopping these types of loans. Remember knowledge is power!

Click Here

What the ultra rich really think about you!!

A great read on the Washington Post today. It is about Wall Street and how those who control these big companies (BANKS) feel about the average American!!

Click Here to read the story

1.5% is the new FED rate...

The FED has now cut the rate to 1.5%!! Cheaper money was the theme all day on Wall Street.

How will this effect you? HELOCS, will be cheaper to obtain, because they are tied to the prime. Fix mortgages on the other hand, it might not effect too much.

Fixed mortgage rates have been going up all day today and I suspect they will do so for the next few days. At the same time, mortgage rates are really low right now. They are around 5.5% par and that is historically low.

Read more on bankrate.com

Up 7.4%!!

Things might be looking up in the Real Estate market. In the news today, existing home sales are up 7.4%.

In order for home values to stabilize, the huge inventory of existing homes will need to be reduced. Once we are able to obtain a more balanced market, then home prices will follow and stabilize.



Read the story here!!!

Rates are falling!!!!

Mortgage rates dipped today to 5.625% APR!!

If you are in the market, rates are really really really good. These will not last, so make sure you get top of it ASAP.

If you have any questions about current rates, please contact us!!

Countrywide, now Bank of America, is helping people!!

Good news for people who are stuck in a ARM and can’t afford it!! Bank of America (Countrywide) has reached a settlement worth $8.6 billion to help offset the wave of foreclosures. This could help upwards of 390,000 struggling homeowners!!

If you have a mortgage from Countrywide, you might be eligible for this. I strongly recommend contacting them and finding out if you can reduce your mortgage.


Find out more info here Click here

100% is not dead yet!!

Don’t be fooled by the media. 100% financing is not dead, but is now only available in select areas. If you live in a rural area and looking to purchase a home, more then likely you are eligible for a 100% mortgage.

In my mind this is the best product on the market. Great rates and no mortgage insurance!!

Contact us if you would like to learn more…