Our Monthly Newsletter
February 21, 2009
Some of our clients, acquaintances, business associates and friends do not always have the time to look at out webpage so we have decided to try to keep in touch with you via e-mail and our newly (February 15, 2009) initiated Monthly Newsletter. I have figured out how to attach these newsletters as a PDF file and they will be available here under the category “Newsletters” (interesting concept). Right now it is the intent that we update you monthly on the state of the solds in Truckee and North Lake Tahoe. Also, we will be featuring the properties that we think are the best priced and the properties that we think are the worst priced. Also, we will try to feature one of our clients, friends or co-workers. Hope you do enjoy it and let us know if you have suggestions.
Mortgage Update Friday, February 20, 2009
February 21, 2009
It is becoming increasingly difficult to keep up with the mortgage market these days. Gone are the days of steady interest rates and new and creative vehicles for financing (thank goodness). Here our mortgage man – Charles Berg with Coldwell Banker Home Mortgage – puts together his report for this week:
THIS WEEK IN THE MORTGAGE MARKET: Rates moved down today, but are steady as compared to earlier in the week. One point 30 year fixed rate pricing remains at 4.781%. No point pricing is still at 5.063%. Our Conforming-Plus rates are now extremely low, especially relative to the rest of the market. One point rates are at 4.875%. Good jumbo rates are also available with ARM products in the 5s and fixed loans in the 6s.
This week’s biggest economic news item is the Obama Administration’s new “Homeowner Affordability and Stability Plan.” This initiative has three distinct parts. The first is to improve access to refinances for owners that are currently unable to refinance do to limited equity. (Only owners that currently have Fannie / Freddie loans will be eligible for this program.) The second involves helping “at-risk” owners keep their homes by making their existing loans more affordable. In theory, this will be accomplished by providing incentives for lenders and loan servicers to modify loan terms and lower interest rates. The last part of the plan is to increase government support for Fannie Mae and Freddie Mac. Details on how and when these plans will be implemented are not yet available, but I will be sure to let you know when they are.
FEATURED STRATEGY I: BUY Prices are low, rates are extremely low and buyers have the upper hand in negotiation due to large amounts of inventory. When buyers find a home they like, they should make an offer. The opportunity is now. Homes are not just for sale, they are “on sale.”
FEATURED STRATEGY II: REFINANCE Most homeowners could think of something to do with $200 or $300 extra dollars a month. With rates at historic lows, refinancing can save this much money. Here’s a quick example. A $300,000 loan, fully amortized at 6.25% interest costs $1847 a month. The same loan at 5.0% interest costs $1610, a savings of $237 a month.
ALSO, AS MORE BUYERS GET GREAT DEALS ON HOMES, VALUES FALL AND REFINANCING GETS HARDER. VALUE IS THE SINGLE GREATEST CHALLENGE FOR REFINANCES RIGHT NOW. IF YOU WANT TO REFI, YOU SHOULD DO IT NOW, NOT LATER.
get in touch with Charles at: charles.berg@mortgagefamily.com
Short Sale Information updated
February 20, 2009
A week or so ago I attended another Short Sale Seminar put on by Coldwell Banker. The location was down the hill at the Placer County Board of Realtors and Kathy Mehringer of Coldwell Banker NRT was our teacher. She brought us up to date on all of the requirements that the bank will want and need to see if they are to approve a short sale. Coldwell Banker has put together a template to try to help all of us Coldwell Banker agents remain consistent in our offer presentation to the banks, thus making it easier on the person processing the offer. We are hopeful that this will move the process along. Kathy also has published, in PDF form, a Q & A on the short sale. Be sure to read up here if you want to understand the pitfalls, advantages and logistics behind the Short Sale. Thank you Kathy. Kathy’s Frequently Asked Questions – Short Sales This mechanism is here to stay for awhile as we all look for ways to buy and sell real estate.
Mortgage update 2/16/09
February 16, 2009
Lots of good information from CAR’s 2/12/09 weekly update. Today we will deal with some information on the best practices currently with regard to residential mortgage procurement. Apparently the consumer must now understand that the days of getting a competititive mortgage rate without paying a point (1% of the loan amount) are pretty much non existent. Read what CAR has gleaned from other sources as to the state of today’s mortgage market:
The new rules of mortgage lending
Current mortgage rates and changes in loan underwriting standards have led some borrowers to make mistakes when applying for a mortgage loan. One old adage that many borrowers fall into is not paying up-front points. In previous real estate cycles, paying one percentage point was equivalent to shaving off approximately a quarter of a percentage point of interest. In today’s market, one percentage point can lower the interest rate by as much as 1 percent, changing a 6 percent interest rate into one that is 5 percent.
Another common mistake some borrowers make is not locking in an interest rate, especially when the rates are at historic lows, as they are currently. Many borrowers believe that if a favorable rate is available this week, a lower one will likely be offered next week. Mortgage experts advise clients to lock in a rate if the numbers work and not try to wait for a better rate that may not come.
To read the full story, please click here:
Larger mortgages still carry higher rates
Some homeowners, especially in high-cost areas, are finding that the best interest rates are only available for conforming loans, those that are below $417,000. In high-cost areas, many homes fall into the jumbo conforming loan category — $417,000 to $625,500 or the jumbo loan category – above $625,500.
Last year, Congress created the jumbo conforming loan category as the intermediate category of loans, hoping to stimulate the mortgage market. Congress’ intent was to lower rates for loans below the jumbo loan limit of $625,500; however, that did not happen, and many jumbo conforming loans and jumbo loans still carry higher interest rates than true conforming loans.
To read the full story, please click here:
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/02/10/BUG715QM5I.DTL&tsp=1
To view additional articles about the mortgages, which also may be of interest to clients in the market for a new home loan please visit:
Mortgage crisis spreads to more affluent areas of Silicon Valley
To read the full story, please click here:
http://www.mercurynews.com/realestatenews/ci_11583658
Mortgage rates rise despite the Fed’s efforts to push them down
To read the full story, please click here:
http://www.latimes.com/business/la-fi-mortgage6-2009feb06,0,927806.story
Valentines’ Day 2009
February 15, 2009
Well, another Valentines’ Day has passed, hard to believe that I have only experienced 61 of these. Every year goes by faster and faster. This year I got a new dishwasher to celebrate. We got another gift from above this weekend in the form of SNOW. All the skiers were out and about. Some of us are better equipped than others to deal with the snow and watching this fellow putting on his tire chains, outside our office in Truckee made me thankful for my 4 wheel drive and aggressive snow tires.
This guy was remarkable, my fellow Realtor and I agreed, because we witnessed him actually peering over the directions. Imagine that, a guy reading the directions. Sorry guys, but we have our idiosyncracies too, just couldn’t pass up on that one.
In any event, town was bustling but we managed to make reservations, thanks to my girlfriend Melinda and 7 of us celebrated the evening at Zano’s in Truckee. Had a great dinner, lots of their house wine which is produced for them by Truckee River Winery. Thanks for another great year Russ! (he’s the guy on the left, my guy, isn’t he cute?)
