Shane Haas & Nate Harimoto's Blog

The Federal Reserve said it’s unlikely to raise its benchmark interest rate before late 2014, extending its time frame by at least a year and a half.

Read the full story

Interest rates are the lowest in decades, enticing many borrowers to shop for a loan.  Mortgage lenders adjust their rates based on perceptions of risk, so unless the borrower can show they’re a low-risk individual, the borrower is unlikely to qualify for a rate that matches those seen in recent advertisements and headlines. Story highlights:

• The rates quoted are averages drawn from a variety of financial institutions, and lenders use varied approaches to set them.  Consumers who want to try for the lowest rates available need to consider basic factors, such as credit score, points, property type, down payment, and length of the loan.
• Credit score: The ideal borrower has a FICO score of 740 or higher, which puts the individual in the best place for pricing.
• Points: The lowest rates usually are decreased by paying a fee called a point, or 1 percent of the loan amount.  Borrowers may buy points in order to get the best rates at many banks.  Points might make sense depending on the borrower’s financial situation and how long they expect to stay in the home.
• Property type: Borrowers planning to buy a duplex or a four-unit build likely will have a higher interest rate.  Condominiums also may have a rate premium rate, especially if they are newer or the down payment is less than 25 percent.  Lenders also may charge more if the borrower is not planning to live in the home.
• Down payment: Borrowers who put down at least 25 percent are more likely to obtain the best interest rates.  Lenders offer different breaks on rates if equity in the property is higher, so borrowers should ask what is available.
• Length of loan: Borrowers who are likely to move in a few years may want to look into an adjustable-rate loan with a low interest rate fixed for a few years, and adjusted afterword.

Read the full story

Calif. median home price: November 2011: $280,960 & December 2011: $285,920 (Source: California Association of Realtors, C.A.R.)
Calif. highest median home price by region/county December 2011: Marin: $693,880 (Source: C.A.R.)
Calif. lowest median home price by region/county December 2011: Madera: $106,000 (Source: C.A.R.)

Calif. Pending Home Sales Index: December 2011: 91.6, an increase from the revised 82.5 recorded in December 2010

Calif. Traditional Housing Affordability Index: Third quarter 2011: 52 percent (Source: C.A.R.)

Mortgage rates: Week ending 1/19/2012 30-yr. fixed: 3.88% fees/points: 0.8% 15-yr. fixed: 3.17 fees/points: 0.8% 1-yr. adjustable: 2.74% Fees/points: 0.6% (Source: Freddie Mac)

Five issues for housing in 2012

via Five issues for housing in 2012.

A bedroom is ideally a place of rest and rejuvenation, a welcome respite from the world. But if you are like many of us, you use your bedroom for storing heaps of unfolded laundry, stacks of papers, books, and other miscellaneous items. You can easily snazz up your bedroom to create an atmosphere that is calm and tranquil. Décor and furnishings do not have to cost a huge amount of money. Here are seven ways to make your bedroom pop.

Paint

Painting the walls of a room is one of the quickest and least expensive ways to get dramatic results. Special faux painting techniques allow you to create the illusion of texture and space, with fabulous results. Try sponging, ragging, or stenciling.

Color is an important aspect of the paint you choose for your bedroom. Blues and greens are quiet and calming, while oranges and browns are toasty and cozy. Up for a change? Add heat to the bedroom with red, and glamour withgold. Alternatively, you could choose tried-and-true blue, or experiment with orange.

Wallpaper

If you haven’t heard yet, wallpaper is making a comeback. Today’s wallpaper is available in earth-friendly materials, beautiful textures, and custom designs. Computer applications and digital printing techniques make the possibilities endless.

A trendy alternative to wallpaper is vinyl wall décor. These wall clings are relatively inexpensive, easy to put up, and a snap to take down and reposition. Vinyl wall décor is available in many styles, and for different rooms.

Window coverings

Consider purchasing black-out drapes for the windows in the room; they block out light and noise, improving the quality of sleep. To give the room a seamless and calming look, choose window coverings that are the same color as the walls.

Lighting

Instead of the standard light fixture positioned squarely in the middle of the ceiling, experiment with candles, dimmers, and lamps. Lights add warmth and comfort, enhancing the intimacy of a room. Wall sconces on both sides of the bed add a sense of timelessness.

Bed furnishings

It may not seem like a big concern, but nice bed linens are high on the list of bedroom essentials. Invest in some quality cotton sheets that have a high thread count. Wash the sheets often, especially pillow cases, to keep allergens and germs at bay.

Headboard

Pass up the traditional headboards and create a headboard of your own. For instance, a large canvas (found at craft stores) can be covered in an exotic material and hung on the wall. A romantic wrought-iron headboard allows light to create patterns and shadows on the walls.

Rugs

If you don’t have a carpet in your bedroom, a rug can warm things up and pull the elements of a room together. Look for rugs that are large enough for a bed to be on top, with room to spare around the edges.

Many homeowners considering a renovation think they will retrieve the costs when they sell.  However, unless homeowners keep these projects practical, it is unlikely they will recoup the costs later on.

Some renovations are more likely to increase the value of the property, while others are more for the homeowner’s enjoyment.  For example, a steel front door can be a good investment, while a master suite addition generally is not.

Each year, Remodeling Magazine looks at the hottest home upgrades and calculates the amount the owners are likely to get back when they sell.  To see the 2011 Remodeling Magazine report, visit http://www.remodeling.hw.net/2011/costvsvalue/national.aspx

If you’re currently home shopping or planning to refinance, it’s important to decide on a specific mortgage program. Let’s take a look at some of the most popular loan programs out there to determine which will be the best fit for you.

30-Year Fixed
This is the granddaddy of them all, and the go-to for most homeowners. It also happens to be the simplest mortgage to get your head around. Go figure. Put simply, it’s a 30-year term loan with a fixed rate. In other words, the interest rate never changes during the life of the loan. So if you’re risk-averse, and plan on staying in your home for the foreseeable future, this is your mortgage. Just know that the mortgage rate will be higher to compensate for the relative safety.

15-Year Fixed
Another popular (and conservative) choice is the 15-year fixed. Just like the 30-year, the interest rate will never change during the life of the loan. But the mortgage term is cut in half, meaning monthly mortgage payments will be much higher. This program is good for the homeowner that actually wants to pay down their mortgage, while minimizing interest paid. You will certainly pay a lot less interest. Just be sure you can handle the larger payment!

Other FRMs While the 30-year and 15-year are the most popular and well known fixed-rate mortgages (FRMs), you may also come across additional options, such as 10, 20, 25, and 40-year fixed terms. Be sure to consider all of them when shopping your mortgage.

5/1 ARM
If you’re a little more daring, you may also want to take a look at the adjustable-rate mortgage (ARM) options available. The most popular is the 5/1 ARM, which is fixed for the first five years of the 30-year term, and adjustable for the remaining 25. This makes it a hybrid ARM, meaning it’s fixed for a while before becoming adjustable. If you don’t plan on being in your home for long, this could save you some serious money, as the interest rate will be significantly lower than fixed-rate options. Just take caution, as the rate can also surge once those five years are up.

Other ARMs
There are also a number of other ARMs, ranging from as short as a 6-month program to a 10-year product. Obviously, the shorter the fixed period, the more likely you’ll wind up with an actively adjustable-rate mortgage. Also know that the shorter the fixed period, the lower the initial interest rate. So a 1-year ARM may be cheap at the onset, but adjust much higher before you know it. And a 10/1 ARM may price just slightly lower than fixed-rate options because of its long fixed period.

There are certainly plenty of options to choose from and your risk appetite, coupled with your unique financial/life position, should determine which is best. But don’t rush your decision. Crunch the numbers using a mortgage calculator, make a long-term plan, and comparison shop before making your choice!

Before starting the house hunt, there are a few things buyers need to consider.

Credit score: Lenders are generally looking for buyers to have credit scores of at least 620 nowadays.  Although the Federal Housing Administration will extend loans to borrowers with credit scores as low as 580, most banks are imposing higher scores.

Reserves: Even when renting, financial advisers recommend saving four to five months’ worth of expenses in case of job loss or any other unforeseen event.  Homeowners should add an additional two months’ worth to their savings.

Settling down: Buyers should think about if they see themselves living in the same place for five to seven years.  Homeownership is not just a financial decision, it’s also a lifestyle choice.

Quick facts on California median home prices, pending home sales index, affordability index and mortgage interest rate averages.

Click Here: Fast Facts.

Click Here for Full Article 5 Credit Myths—BUSTED.