Lowest level in 4 years!!

Mortgage rates are falling!! Not sure how long this will last, but I think rates should stay between 4.5% - 5% for the next month.

Contact us to find out what the current rates is.

A good deed

This company handed out more then a turkey this Thanksgiving!

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Real Estate down 17% in Sept!!

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The latest Case-Shiller home price index released Tuesday by Standard & Poor's shows prices falling at an annual rate of more than 17% in September across the country, with all 20 markets tracked by the index showing declines from August and to September of 2007.

Home prices on a national level are down 17% in September. Please keep in mind that not all homes are declining in value. Unlike other investments, real estate is based on the local market value rather then the national value.

At the same time, when looking at the big picture, it looks a little scary

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.


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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!!

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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!!

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…

Q and A on investment real estate from a smart realtor…

Well, there are so many homes on the market today that I start to get giddy. It’s a buyer's market and will be for the rest of the year and maybe even longer.

In today’s post, I interviewed one of my most trusted realtors in the Twin Cities area, Mr. Brian Amiot. He is my go-to realtor for investment real estate.

Satori: Where should I look at buying?

Brian Amiot: You should look for a neighborhood that is not over saturated with homes listed for sale and especially not over saturated with abandoned or foreclosed homes for sale. It should be within a decent proximity of where you live, regardless of whether you plan on renting or rehabbing. Other than that, it's all about trying to find a neighborhood that has relatively short listing times in general.

S: If I buy a foreclosure, what are some of the pitfalls I should be aware of?

Amiot: In buying a foreclosed home, you are buying the home "as-is" in most cases. A lot of foreclosed homes have been sitting vacant for quite some time, so there can be issues with cracking from the extreme temperatures and sometimes even pipes bursting. I always recommend getting an inspection, and to keep in mind that inspectors don't always catch everything. Plan on having more repairs than you initially see.

S: When do you see the market bouncing back?

Amiot: If I knew that answer for sure, I would be in a tropical paradise, being served on hand and foot...but I have seen signs of the market turning in the recent past. There have been more showings and offers on my listings, and I have seen more and more properties that I show clients sell before we even get a chance to see them. I don't think it's going to happen overnight, but I think we are at least starting to head the right direction.

S: If I have 100k to invest in another property what should I look at buying?

Amiot: What to invest in is very different for every investor. It depends if your goals are to buy and hold, or buy and sell first of all. Again, I believe in keeping properties close enough where you can manage them if need be. Other than that, it's all about finding the house that has some opportunity for improvement. I try and look for functional obsolescence, or something that is functionally wrong with a home. But, also something that can be fixed without too much of an expense.

S: What are some of the upsides you look at in homes?

Amiot: I am a personal fan of 3 bedroom, 1 bath homes that have an opportunity of adding another bath. I also like homes that are in nice neighborhoods and down the street from much larger, more expensive neighborhoods. Layout in general is a huge factor, but probably the two most important things that I look for are curb appeal and that "Wow" factor right when you walk in the door.

If you are looking into purchasing investment real estate in the Minneaoplis/Twin Cities, MN area, please contact The Satori Group or Brian Amiot (web-site posted under the link section). We love questions!