Apr
20
First gain for Calif. prices in 16 months
Posted by venturacounty under For Buyers, For Sellers, General Information
The median price for an existing, single-family home in California rose 1.6 percent in March compared with the year before, marking the first year-over-year increase in 16 months, the CALIFORNIA ASSOCIATION OF REALTORS® reported Monday. Highlights of story:
- The statewide median price of an existing, single-family detached home jumped 9.2 percent to $291,080 in March from February’s $266,660 median price and was up 1.6 percent from a revised $286,550 recorded in March 2011. The month-to-month increase was the largest since March 2004.
- Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 505,360 units in March, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. Sales in March were down 4.5 percent month-over-month and 2.3 percent year-to-year.
- The statewide sales figure represents what would be the total number of homes sold during 2012 if sales maintained the March pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
- “Housing inventory remains extremely tight throughout the state and at levels severely under normal market conditions,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “In areas, such as Los Angeles and Riverside counties, where the Federal Housing Finance Agency (FHFA) wants to implement the REO bulk sale pilot program, inventory is running at levels well below the long-run average. These low inventory levels demonstrate that the pilot program is not necessary in California.”
- The pilot program calls for the sale of more than 600 Fannie Mae-owned foreclosed homes in Los Angeles and Riverside counties to institutional investors.
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Apr
20
The Formula for Securing a Top-Notch Student Loan
Posted by venturacounty under For Buyers, For Sellers, General Information
The Formula for Securing a Top-Notch Student Loan
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Apr
20
Fast Facts…March 2012
Posted by venturacounty under For Buyers, For Sellers, General Information
Calif. median home price: March 2012: $291,080 (Source: California Association of Realtors, C.A.R.)
Calif. highest median home price by region/county March 2012: San Mateo, $677,900 (Source: C.A.R.)
Calif. lowest median home price by region/county March 2012: Tehama, $108,000 (Source: C.A.R.)
Calif. Pending Home Sales Index: February 2012: 127.8, an increase from the revised 102.4 recorded in January.
Calif. Traditional Housing Affordability Index: Fourth quarter 2011: 55 percent (Source: C.A.R.)
Mortgage rates: Week ending 4/12/2012 30-yr. fixed: 3.88% fees/points: 0.7% 15-yr. fixed: 3.11 fees/points: 0.7% 1-yr. adjustable: 2.80% Fees/points: 0.6% (Source: Freddie Mac)
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Apr
5
Past foreclosure means waiting years for new loan
Posted by venturacounty under For Buyers, For Sellers, General Information
Next to filing for bankruptcy protection, nothing wrecks a borrower’s chances of qualifying for a home loan like a foreclosure. And, some lenders may not look favorably upon borrowers who were able to successfully complete a short sale either. Highlights to story:
- Although more than 4 million homes have been lost to foreclosure in the six years since the housing market began its descent, it’s a reality that the former owners will have to contend with the repercussions of foreclosures and/or short sales. However, the passage of time makes all the difference.
- The mortgage-lending guidelines followed by the majority of banks prohibit lenders from making loans to people with foreclosure or short sale in their credit history, often for years.
- Still, some homeowners who were foreclosed upon when the market first started to skid are now looking to buy another home and are getting approved for new loans.
- The likelihood of a borrower with a real-estate related blemish on their credit history being approved for a new loan depends on several factors, but largely on whether the borrower had a foreclosure or a short sale.
- Generally, borrowers who have a foreclosure in their credit history can expect to wait between two to seven years before a lender will even accept their loan application. The waiting periods stem from guidelines most banks must follow in order to sell their loans to purchasers such as Fannie Mae and Freddie Mac.
- If a buyer with a past foreclosure is seeking a government-backed mortgage, the waiting period can vary before they can qualify. The Federal Housing Administration, which insures roughly 30 percent of new loans, requires former homeowners to wait three years from the date of their foreclosure before they can qualify for a loan guaranteed by the agency.
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Apr
5
8 Don’t-Miss Real Estate Deadlines
Posted by venturacounty under For Buyers, For Sellers, General Information
Deadlines are an unavoidable piece of the real estate puzzle. Just don’t let them sneak up on you. The list of high-stakes decisions to make during a real estate transaction is seemingly endless. Rent or buy? Sell or stay put? Which agent to hire? What price to offer? Yet there is one aspect of the process that can create even more stress than these tough choices: deadlines. What’s worse—they’re most stressful when we don’t learn about them until the last minute, or we find ourselves unable to meet them for reasons beyond our control. Here’s an advance briefing on the short list of super important real estate deadlines that every buyer, seller and homeowner should have on their radar.
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Mar
26
A hidden mortgage fee is set to rise
Posted by venturacounty under For Buyers, For Sellers, General Information
The guarantee fee – a hidden fee inside the interest rate quoted on a home mortgage – has been mandated by Congress to increase this spring, and other increases are likely later to take place later this year and next. Highlights to Story:
- The guarantee fee has been charged by government sponsored entities like Fannie Mae and Freddie Mac for more than three decades. The fee does not show up in borrowers’ mortgage documents or good-faith estimates, and it is little known outside the industry. According to a Fannie Mae spokesman, the fee “gets incorporated into the underlying rate the borrower pays.”
- An interest rate is usually made of up three parts: The largest goes to the bank or the investors who buy the loan; the smaller portion is for the mortgage servicer that collects monthly payments; and then there’s the guarantee fee. Fannie and Freddie charge guarantee fees as a form of insurance against default for the loans they acquire and resell to investors.
- The guarantee fee will rise 10 basis points on April 1; the increase was included in the two-month extension of the payroll tax reduction last December. A basis point is equal to one one-hundredth of 1 percent, or 0.01 percent.
- One way to avoid the guarantee fee is to use a lender that does not sell off its loans – for instance, a community bank or a credit union.
- In addition to offsetting risks, the fees provide a primary source of revenue for Fannie Mae and Freddie Mac. Both organizations started raising fee rates in 2008 during the housing crisis, as foreclosure costs rose.
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Mar
26
Remodel Talking Points…
Posted by venturacounty under For Buyers, For Sellers, General Information
Budgeting for a large remodeling project presents a bit of a chicken-and-egg problem: Homeowners won’t have a feel for the cost until they get bids from contractors.
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Mar
23
First Time Home Buyer Talking Points…
Posted by venturacounty under For Buyers, For Sellers, General Information
Home buying doesn’t begin with home searching; it begins with a mortgage pre-approval. Often, first-time home buyers fear getting pre-approved because they’re afraid the lender may tell them they do not qualify for a mortgage or they qualify for a loan smaller than expected. However, by getting preapproved, buyers will make a financial decision rather than an emotion one
Another mistake first-time home buyers make is not thinking of a house as a long-term commitment. If a buyer may have to switch jobs in a year or two and may have to move for the job, they should think twice about buying a house. Ideally, buyers should picture themselves living in the house for five to seven years.
Some first-time buyers make the mistake of spending all of their savings on the down payment, closing costs, and coming up with a 20 percent down payment to avoid paying for mortgage insurance. However, most real estate experts advise against this because the borrower will be left with no savings at all for home repairs and other unexpected expenses.
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Mar
23
Fast Facts…
Posted by venturacounty under For Buyers, For Sellers, General Information
Calif. median home price: February 2012: $266,660 (Source: California Association of Realtors, C.A.R.)
Calif. highest median home price by region/county February 2012: Marin, $732,140 (Source: C.A.R.)
Calif. lowest median home price by region/county February 2012: Tehama, $85,000 (Source: C.A.R.)
Calif. Pending Home Sales Index: January 2012: 102.4, an increase from the revised 93.1 recorded in January 2011
Calif. Traditional Housing Affordability Index: Fourth quarter 2011: 55 percent (Source: C.A.R.)
Mortgage rates: Week ending 3/15/2012 30-yr. fixed: 3.92% fees/points: 0.8% 15-yr. fixed: 3.16 fees/points: 0.8% 1-yr. adjustable: 2.79% Fees/points: 0.6% (Source: Freddie Mac)
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Mar
21
Some Homeowner Tax Write-Offs
Posted by venturacounty under For Buyers, For Sellers, General Information
- Homeowners should be aware of these tax breaks that they may be eligible to receive.
- Mortgage interest: Homeowners are generally entitled to reduce their taxable income by the amount of mortgage interest they pay, as long as they itemize deductions on their tax returns.
- Private mortgage insurance: Homeowners who are paying PMI likely will be able to fully deduct the amount, as long as their adjusted gross income is $100,000 or less ($50,000 for married taxpayers filing separately). Borrowers with incomes above $100,000 may qualify for a partial deduction.
- Energy-efficient home improvements: If windows, doors, or skylights that meet the requirements of the federal Energy Star program were installed in 2011, homeowners can get a tax credit equal to 10 percent of the product’s costs.
- Points: The charges a borrower paid in points to get a mortgage are generally deductible if it was a first mortgage on the property. In the case of a refinance loan, all or some of the point charges might be deductible, but it gets complicated.
- Property taxes: The amount paid in property taxes is deductible as long as it is based on the assessed value of the property. If the mortgage company collects money for property taxes, the amount actually paid should be on the 1098 form lenders send out each January.
- Talked to your CPA to get further details on all your homeowner tax write-offs. If you do not have a CPA call us and we can refer one to you.
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Shane Haas & Nate Harimoto's Blog is authored by Shane Haas
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