MMG Update - Tuesday, May 6, 2008 9:14am ET
Current Trend Direction: Sideways
Risks favor: Floating
Current Price of FNMA 5.5% Bond: $100.59, +19bp
Bonds are moving higher this morning after bad news was released for Fannie Mae, the largest provider of US home financing. The company said it lost $2.19 Billion in the first quarter due to the current housing and credit crisis, which equates to a loss of $2.57 a share compared with a profit of 85 cents a year ago. And like Freddie Mac, the company plans to raise capital and cut its dividend. Stocks traded lower on the news, pushing money into Bonds and helping Bond pricing improve.
In other headlines, oil hit a new record high of $120.93 this morning. Oil prices have doubled over the past twelve months, pushing the average price at the pump to $3.60 a gallon. Goldman Sachs is forecasting that black gold could rise to $150-$200 a barrel in the next twelve months. If this plays out as they suggest, the inflationary effects of high oil prices could pressure Mortgage Bonds lower, causing home loan rates to move higher...so this will be a story to watch. In other words, it might be the time to buy now while rates are low. And, because of the inflation alone, we may see higher home prices.
For now, Bonds continue to ride a dual floor of support at the 50 and 100-day Moving Averages. We will continue to Float for now, and watch how the Bond behaves near this strong floor.
801-649-5883
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Marina Vialtsina
Showing posts with label mortgage. Show all posts
Showing posts with label mortgage. Show all posts
Tuesday, May 6, 2008
Tuesday, April 8, 2008
Zero down mortgages
Zero down mortgages will be the history soon, at least for a while. Fannie and Freddie have several high loan to value programs available, but mortgage insurers are simply not writing the policies any more. Even risk based policies are gone.This means that while the program may exist, no investor will buy them. A clue of this outcome came last week when Congress made a compromise in the housing bill to raise FHA loan down payments instead of lowering them. This is a pretty big indicator of the fear associated with high LTV loans.Senate Democrats also yielded ground on a provision to change the down payment requirements for FHA loans. Democrats have been pushing to reduce them, but the bipartisan agreement actually increases them by half a percentage point. That may not fly in the House, when it considers the package.If you have an unlocked 100% loan in process, check with your loan officer/broker to see if your program is still available. Lock it in if you still can.One program that continues to offer 100% financing is the V.A. (Veterans Administration) loan program for enlisted and retired military members. Home buyers eligible to receive this program can benefit from no out of pocket costs with a properly structured purchase contract.Other than V.A. mortgages, 100% financing may be the history for at least a while.
Friday, March 14, 2008
Mortgage Foreclosures in Utah
Mortgage Foreclosures in Utah
Utah currently has one of the lowest rates of seriously delinquent mortgages in the nation.
In the fourth quarter of 2007, 7,000 mortgages in Utah were seriously delinquent, or 1.58 percent of mortgages.
Utah currently has one of the lowest rates of seriously delinquent mortgages in the nation.
Table 1
States Ranked by Seriously Delinquent Mortgage Loans
(Fourth Quarter - 2007)
Ten
Lowest
% of Loans
Seriously Delinquent
Ten
Highest
% of Loans Seriously Delinquent
Alaska
1.21
Michigan
5.93
Oregon
1.32
hio
5.89
Wyoming
1.36
Indiana
5.57
North Dakota
1.37
Mississippi
5.28
Washington
1.39
Louisiana
4.09
ontana
1.53
Illinois
3.98
Utah
1.58
Rhode Island
3.9
Idaho
1.60
Kentucky
3.86
Hawaii
1.73
Alabama
3.73
South Dakota
1.83
Maine
3.5
U.S.
3.62
Source: Mortgage Bankers Association.
There are six states that have lower delinquency rates than Utah including Alaska, which has the lowest rate in the nation at 1.21 percent. The states hit hardest by foreclosures and delinquencies are Michigan, Ohio and Indiana. In each of these states nearly one out of every sixteen mortgages is seriously delinquent. These are not states where housing prices have had huge run-ups over past five years, but rather states with prolonged job losses and states that have had difficulty recovering from the 2001 recession.
Utah ranks even better when looking strictly at foreclosure rates without 90 days or more delinquencies. In the fourth quarter of 2007 Utah’s foreclosure rate was 0.80 percent. Only four states had lower foreclosure rates; Alaska 0.67 percent, Oregon 0.72 percent, Washington 0.72 percent and North Dakota 0.79 percent. The number of homes in Utah in foreclosure was 3,550 in the fourth quarter of 2007, up 750 homes over the third quarter.
The second quarter of 2007, with a rate of 0.55 percent, was the lowest point for foreclosures in this cycle and the lowest rate since the fourth quarter of 1997, when foreclosures were 0.50 percent of all mortgage loans.
Subprime mortgage loans have been particularly vulnerable to foreclosure. Nationally there are 6 million subprime loans, accounting for 13.2 percent of all mortgage loans. Subprime loans in Utah represent a very similar share, 13.4 percent of all mortgage loans. There are currently 52,987 subprime loans in Utah and 32,394 of these loans are subprime ARM (adjusted rate mortgage) loans, the most vulnerable to foreclose.
Nearly five percent of the subprime ARM loans in Utah are in foreclosure, about 1,600 loans. While this rate may seem high, Utah’s subprime loans look healthy compared to other states. In fact, Utah has the lowest rate of foreclosure for subprime ARM mortgages in the country. Nationally 13.4 percent of subprime ARM loans are in foreclosure.
Mortgage Foreclosure and Delinquency in Utah
(Fourth Quarter 2007)
Number of Loans*
30 Days
Late
90 Days
Late
Foreclosure
Seriously
Delinquent
All Loans
444,645
2.56%
0.78%
0.80%
1.58%
Prime Loans
335,259
1.62%
0.32%
0.38%
0.70%
Subprime Loans
52,987
6.66%
2.79%
3.68%
6.47%
Subprime ARMLoans
32,394
7.29%
7.29%
4.86%
8.10%
*Loans don’t sum to total due to exclusion of FHA and VA loans.
When Utah experiences a high rate of economic growth there is typically a very low rate of foreclosure. This was certainly the case in the mid-1990s when job growth and rising home prices drove the foreclosure rate down. During this cycle the foreclosure rate hit its lowest point of 0.30 percent in the third quarter of 1996, when only 600 homes were in foreclosure. Historically, Utah’s foreclosure rate is considerably more volatile than the national rate, Chart 1.
For 15 years the national foreclosure rate moved consistently around a narrow range of 1.0 to 1.25 percent, but in late 2006 the national rate suddenly accelerated, while the rate in Utah continued to decline. Foreclosure rates in Utah steadily declined from the peak of 2.0 percent in 2002 to 0.64 percent in 2007.
Not surprisingly, the serious recession of 2001–2003 led to the highest rates of foreclosure in Utah since the mid-1980s. As shown by the troubled large industrial states of Michigan and Ohio, foreclosure rates are particularly sensitive to job growth and economic expansion. Without doubt, Utah’s strong job growth, which continued throughout most of 2007, has helped to keep the state’s foreclosure rate among the lowest in the country.
While Utahns can take some satisfaction in the low rate of foreclosures, there has been a strong up-tick over the past two quarters. The number of homes in foreclosure has risen from 2,400 in the second quarter of 2007 to 3,550 in the fourth quarter of 2007. As Utah’s job growth slows from 50,000 annually in 2006 to an expected 25,000 in 2008, and 16,000 in 2009, the rate of foreclosure could approach 1.5 percent by the end 2009.
Utah currently has one of the lowest rates of seriously delinquent mortgages in the nation.
In the fourth quarter of 2007, 7,000 mortgages in Utah were seriously delinquent, or 1.58 percent of mortgages.
Utah currently has one of the lowest rates of seriously delinquent mortgages in the nation.
Table 1
States Ranked by Seriously Delinquent Mortgage Loans
(Fourth Quarter - 2007)
Ten
Lowest
% of Loans
Seriously Delinquent
Ten
Highest
% of Loans Seriously Delinquent
Alaska
1.21
Michigan
5.93
Oregon
1.32
hio
5.89
Wyoming
1.36
Indiana
5.57
North Dakota
1.37
Mississippi
5.28
Washington
1.39
Louisiana
4.09
ontana
1.53
Illinois
3.98
Utah
1.58
Rhode Island
3.9
Idaho
1.60
Kentucky
3.86
Hawaii
1.73
Alabama
3.73
South Dakota
1.83
Maine
3.5
U.S.
3.62
Source: Mortgage Bankers Association.
There are six states that have lower delinquency rates than Utah including Alaska, which has the lowest rate in the nation at 1.21 percent. The states hit hardest by foreclosures and delinquencies are Michigan, Ohio and Indiana. In each of these states nearly one out of every sixteen mortgages is seriously delinquent. These are not states where housing prices have had huge run-ups over past five years, but rather states with prolonged job losses and states that have had difficulty recovering from the 2001 recession.
Utah ranks even better when looking strictly at foreclosure rates without 90 days or more delinquencies. In the fourth quarter of 2007 Utah’s foreclosure rate was 0.80 percent. Only four states had lower foreclosure rates; Alaska 0.67 percent, Oregon 0.72 percent, Washington 0.72 percent and North Dakota 0.79 percent. The number of homes in Utah in foreclosure was 3,550 in the fourth quarter of 2007, up 750 homes over the third quarter.
The second quarter of 2007, with a rate of 0.55 percent, was the lowest point for foreclosures in this cycle and the lowest rate since the fourth quarter of 1997, when foreclosures were 0.50 percent of all mortgage loans.
Subprime mortgage loans have been particularly vulnerable to foreclosure. Nationally there are 6 million subprime loans, accounting for 13.2 percent of all mortgage loans. Subprime loans in Utah represent a very similar share, 13.4 percent of all mortgage loans. There are currently 52,987 subprime loans in Utah and 32,394 of these loans are subprime ARM (adjusted rate mortgage) loans, the most vulnerable to foreclose.
Nearly five percent of the subprime ARM loans in Utah are in foreclosure, about 1,600 loans. While this rate may seem high, Utah’s subprime loans look healthy compared to other states. In fact, Utah has the lowest rate of foreclosure for subprime ARM mortgages in the country. Nationally 13.4 percent of subprime ARM loans are in foreclosure.
Mortgage Foreclosure and Delinquency in Utah
(Fourth Quarter 2007)
Number of Loans*
30 Days
Late
90 Days
Late
Foreclosure
Seriously
Delinquent
All Loans
444,645
2.56%
0.78%
0.80%
1.58%
Prime Loans
335,259
1.62%
0.32%
0.38%
0.70%
Subprime Loans
52,987
6.66%
2.79%
3.68%
6.47%
Subprime ARMLoans
32,394
7.29%
7.29%
4.86%
8.10%
*Loans don’t sum to total due to exclusion of FHA and VA loans.
When Utah experiences a high rate of economic growth there is typically a very low rate of foreclosure. This was certainly the case in the mid-1990s when job growth and rising home prices drove the foreclosure rate down. During this cycle the foreclosure rate hit its lowest point of 0.30 percent in the third quarter of 1996, when only 600 homes were in foreclosure. Historically, Utah’s foreclosure rate is considerably more volatile than the national rate, Chart 1.
For 15 years the national foreclosure rate moved consistently around a narrow range of 1.0 to 1.25 percent, but in late 2006 the national rate suddenly accelerated, while the rate in Utah continued to decline. Foreclosure rates in Utah steadily declined from the peak of 2.0 percent in 2002 to 0.64 percent in 2007.
Not surprisingly, the serious recession of 2001–2003 led to the highest rates of foreclosure in Utah since the mid-1980s. As shown by the troubled large industrial states of Michigan and Ohio, foreclosure rates are particularly sensitive to job growth and economic expansion. Without doubt, Utah’s strong job growth, which continued throughout most of 2007, has helped to keep the state’s foreclosure rate among the lowest in the country.
While Utahns can take some satisfaction in the low rate of foreclosures, there has been a strong up-tick over the past two quarters. The number of homes in foreclosure has risen from 2,400 in the second quarter of 2007 to 3,550 in the fourth quarter of 2007. As Utah’s job growth slows from 50,000 annually in 2006 to an expected 25,000 in 2008, and 16,000 in 2009, the rate of foreclosure could approach 1.5 percent by the end 2009.
Wednesday, March 12, 2008
A "Short Take" on "Short Sales"
When real estate values decline, a number of homeowners find that their mortgage is greater than the value of the property and the owner is said to be fianancially "upside down". If the property is sold at a loss, the owner is still responsible for repyaing the entire mortgage. Sometime owners do not have enough cash to re-pay the loan and so they try to work out a deal with the lender to pay less than is owed, thus a "short sale"
If you have questions regarding this form of sale, please give me a call,
Marina at 801-649-5883
If you have questions regarding this form of sale, please give me a call,
Marina at 801-649-5883
Monday, January 28, 2008
Conventional Limit for Jumbo Mortgages
Many of you may already know this, but congress is looking at increase the conventional limits somewhere between $600,000 and $700,000 from its current limit of $417,000. I will let you know when this happens and the new amount.
More good news . . . . . and thanks to those of you who have been trying to get me referrals! I really appreciate it. Marina
More good news . . . . . and thanks to those of you who have been trying to get me referrals! I really appreciate it. Marina
Wednesday, January 23, 2008
Fed decision to lower the rate...
After Fed decision to lower the rate, I get phone calls from my clients asking me what rate they can get now. Even though mortgage companies most likely will lower rate soon, it does not happen right away, after Fed's decision, and did not happen yet.
The common question is why?
What the Fed did on Tuesday will not directly lower mortgage rates. Mortgage rates are not tied to the Fed rates, they are tied to the Treasury rates.
So the bond market is the influence over mortgage rates. When the bond market goes up – mortgage rates go down and vice versa.
The common question is why?
What the Fed did on Tuesday will not directly lower mortgage rates. Mortgage rates are not tied to the Fed rates, they are tied to the Treasury rates.
So the bond market is the influence over mortgage rates. When the bond market goes up – mortgage rates go down and vice versa.
Friday, January 18, 2008
Why Mortgage Insurance is not such a bad idea?
1. What is Mortgage Insurance (MI)?
Normaly, if you do not have at least 20% down of your funds in the house (in other words, you are financing more than 80% of the house value), the lender charges you Mortgage Insurance monthly. For loan amount $315,000, MI might be between $130-145/month
2. Reasons why MI is not a bad idea?
a. Only recently, MI became tax deductible (with conditions until 2010)
b. You can also cancel without refinancing when you have 20% down. In other words, all you would need to do is to call your lender and ask him to cancel MI if you either reached 20% of house value by paying it or by reevaluating the house value.
c. You can have eliminate MI from the begining if you have 2 mortgages. They call them 80/20 meaning one mortgage cover 80% house value, but not to pay MI, person took 2nd mortgage of 20% house value. However, if you have only one mortgage with MI, you may have easier access to equity because you only have one mortgage, but not 100% financing as 80/20 might be.
d. 2nd mortgage of house value almost always has variable rates; therefore, variable payments. With only one mortgage with MI, you will have predictable payments and no variable rate.
3. Is there 100% financing with no MI?
Yes, No MI loans are available up to 100% on conforming and 90% on Jumbo.
When you shop for loan make sure you understand all fees. Interest rate is not the only important number. For instance, you may have the lowest rate available out there, but your monthly payments would be higher than your friend' with highest interest out there. why?
I will try to explain to you tomorrow....
Marina
801-649-5883
Normaly, if you do not have at least 20% down of your funds in the house (in other words, you are financing more than 80% of the house value), the lender charges you Mortgage Insurance monthly. For loan amount $315,000, MI might be between $130-145/month
2. Reasons why MI is not a bad idea?
a. Only recently, MI became tax deductible (with conditions until 2010)
b. You can also cancel without refinancing when you have 20% down. In other words, all you would need to do is to call your lender and ask him to cancel MI if you either reached 20% of house value by paying it or by reevaluating the house value.
c. You can have eliminate MI from the begining if you have 2 mortgages. They call them 80/20 meaning one mortgage cover 80% house value, but not to pay MI, person took 2nd mortgage of 20% house value. However, if you have only one mortgage with MI, you may have easier access to equity because you only have one mortgage, but not 100% financing as 80/20 might be.
d. 2nd mortgage of house value almost always has variable rates; therefore, variable payments. With only one mortgage with MI, you will have predictable payments and no variable rate.
3. Is there 100% financing with no MI?
Yes, No MI loans are available up to 100% on conforming and 90% on Jumbo.
When you shop for loan make sure you understand all fees. Interest rate is not the only important number. For instance, you may have the lowest rate available out there, but your monthly payments would be higher than your friend' with highest interest out there. why?
I will try to explain to you tomorrow....
Marina
801-649-5883
Friday, December 7, 2007
What the Mortgage Bailout Means for You
On Dec. 6, Treasury Secretary Henry Paulson, with the support of President George W. Bush, unveiled a plan to aid certain homeowners who face the prospect of higher mortgage rates in the next few years. Paulson worked with banks and other mortgage companies to develop the initiative, and thanked them for their involvement. "We have worked through an evolving process to help minimize the impact of the housing downturn on homeowners, neighborhoods and the U.S. economy," he said. While the plan is ambitious and is designed to bring stability to the shaken economy, it will affect only a narrow slice of homeowners in the U.S. "This is not a silver bullet," said Paulson. Here are some answers to questions you may have.
Read more on http://finance.yahoo.com/loans/article/103997/What-the-Mortgage-Bailout-Means-for-You
Read more on http://finance.yahoo.com/loans/article/103997/What-the-Mortgage-Bailout-Means-for-You
Thursday, December 6, 2007
Utah's foreclosure rate better than most of nation
A smaller share of Utahns are losing their homes to foreclosure, bucking a national trend of increased numbers of people who can't pay their mortgages. Only 0.66 percent of Utah home loans were in the foreclosure process at the end of the third quarter, down slightly from 0.68 percent in the same three months in 2006. Utah's foreclosure rate has been falling in recent years after hitting 1.52 percent in the third quarter of 2004. Utah's rate is the fifth-lowest nationally and well below the national rate of 1.69 percent, the Mortgage Bankers Association reported today in its National Delinquency Survey. The state's high ranking can be tied to the state's comparatively strong economy and its real estate market, which has had minimal exposure to the subprime lending debacle. Subprime refers to the riskiest borrowers, many of whom are having trouble repaying loans made to them in recent years. But another measure of mortgage activity is not as encouraging. Utah's delinquency rate, which measures the total share of loans that are more than 30 days past due but not yet in foreclosure, rose to 3.92 percent in the quarter, up from 3.71 percent in the third quarter. The state's delinquency rate had been decreasing in recent years.
read more on http://www.sltrib.com/ci_7651179?source=email
read more on http://www.sltrib.com/ci_7651179?source=email
Tuesday, November 27, 2007
CONFORMING LOAN LIMITS FOR 2008
There will be no change in the conforming loan limits for 2008
$417,000 will remain the maximum loan amount for the third year in a row. Anything above this is considered a Jumbo.
$417,000 will remain the maximum loan amount for the third year in a row. Anything above this is considered a Jumbo.
Wednesday, November 21, 2007
Commercial Real Estate Update
COMMERCIAL REAL ESTATE SECTORS REMAIN ON SOUND COURSE Commercial real estate sectors continue to perform well with sound market fundamentals, according to a commercial market update and forecast presented at a forum on commercial business trends at the 2007 REALTORS® Conference & Expo in Las Vegas, Nov. 13. Lawrence Yun, NAR’s chief economist, expects vacancy rates to trend down in most commercial markets next year and said recent disruptions in the mortgage market have not had a similar impact on the commercial sectors. At the same time, Yun said confidence issues have been a factor in some of the cancelled or postponed transactions. “Not all commercial investors are immune to the psychological effects of Wall Street gyrations or credit concerns, but they should take heart in that pension funds have been increasing their allocation in commercial sectors,†he said.
Monday, October 29, 2007
Mortgage Commentary
This week is packed with economic releases and major events that will likely lead to a fair amount of volatility in the markets and mortgage pricing. There are seven reports scheduled for release along with another FOMC meeting. There is no relevant data scheduled for release today, but there is data being released every other day of the week.The first will be posted tomorrow morning with the release of the Consumer Confidence Index (CCI) for the month of October. This Conference Board index will be posted at 10:00 AM and gives us a measurement of consumer willingness to spend. It is now expected to show a small decline from last month's 99.8 reading, indicating that consumers are a little less likely to make large purchases in the near future. As long as the reading doesn't exceed 99.5, we will likely see the bond market react favorably to this report. This data is watched closely because consumer spending makes up two-thirds of the U.S. economy.The second report of the week will be posted Wednesday morning with the release of the preliminary reading of the 3rd Quarter Gross Domestic Product (GDP). The GDP is considered to be the benchmark measurement of economic growth because it is the sum of all goods and services produced in the U.S. and is likely to have a major impact on the financial markets and mortgage pricing. There are three versions of this report, each a month apart. Wednesday's release is the first and usually has the biggest impact on the markets. Current forecasts call for an increase of approximately 3.1% in the GDP. I think we need to see a smaller increase for the bond market to rally and mortgage rates to drop. Just matching the estimate will probably bring a stock market rally and could cause mortgage rates to rise.The second report of the day Wednesday will be the 3rd Quarter Employment Cost Index (ECI), which tracks employer costs for salaries and benefits. Rapidly rising costs raises wage inflation concerns and may hurt bond prices. It is expected to show an increase in costs of 0.9%. A smaller than expected increase would be good news for bonds and mortgage rates.The week's FOMC meeting is a two-day meeting that begins tomorrow and adjourns Wednesday afternoon. It is expected to bring another rate cut to key short-term interest rates. Assuming this does happen, traders will be looking at the post-meeting statement for any indication of the Fed's next move. While it is widely expected that the Fed will cuts rates at this meeting, there is a lot of different opinions of when the following cut will come, if at all. The meeting will adjourn at 2:00 PM Wednesday, so look for quite a bit of volatility during afternoon hours.Overall, it is going to be a pretty active week for the bond market and mortgage rates. Wednesday's GDP report and Friday's Employment report are the single most important releases of the week. Wednesday will likely be the most important day with the GDP and FOMC meeting, but Friday's data can also lead to sizable changes in mortgage rates. I am expecting to see significant movement in rates this week, so please maintain contact with your mortgage professional.
Tuesday, October 16, 2007
Next article of "A to Z" section: "B"-Before Looking...
Before Looking
1. Before you actively look at homes to buy, it's necessary to know how much you can qualify for. Use mortgage calculators to determine how much you can buy with your down payment and closing cost money and what your monthly payments will be.
2. Know Your Credit Worthiness
3. Look at your credit report before you go to a lender. It is not uncommon to find problems with reports, especially if you have a common last name. To get copies of your credit report, start at fico.com.
4. Get Pre-Approved
After you see your credit report and any problems are cleared up, get pre-approved with a lender. Take the steps necessary to get a letter from the lender stating you are "pre-approved" or "pre-qualified" for a loan in a specific price range. It's important to have this letter before you make a contract offer to buy real estate. Once you are pre-approved, you know what price range of homes you should be looking at.
5. Find a Realtor, and provide pre-approval letter to him or her, so she/he can use it correctly in writting an offer in the near future.
6. What Kind of House is Right?
Determine the specifics you want and need in a home. (Keep in mind your price range, determine what your first priorities are vs. something you would like to have)
Ø What are your day to day and future needs?
Ø Do you enjoy swinging a hammer?
Ø Older houses have great charm, but may need updating.
Ø New homes offer the latest energy efficiency and design features. (in Salt Lake County, there are certain georgraphical place where easier to find new home or older ones)
Ø Larger lots can give room for additions and swimming pools.
Ø A fixer upper can dramatically increase in worth.
Ø A PUD may have private recreational facilities such as a pool and play parks.
Ø A condo or town-house will relieve you of yard work and exterior maintenance.
7. Sit down with your real estate agent and make up a wants and needs list. Knowing your price range, your agent can determine in what neighborhoods or towns to start looking. You may find that you are limited to where you look based on your situation. There is no sense in wasting your or your agent's time in areas out of your price range. The agent will show you how the lis of available homes is getting reduced based on things (search criterias) you have to have in your future homes. The agent will advice you of either narrowing you search (by providing more criterias) or making it broader (because there are too few places to choose from).
8. Little more on Wants and Needs
Ø Price range
Ø Building style/design
Ø New construction
Ø Remodeled
Ø Fixer upper
Ø Minimum # bedrooms
Ø Bathrooms
Ø Family room
Ø Fire place
Ø Office/den
Ø Hardwood floors
Ø Swimming pool / Spa
Ø In-law quarters
Ø Workshop
Ø Central air conditioning
Ø Parking facilities
Ø Yard size
Ø School district
Ø Work locations
Ø Special zoning or location
9. With a list of houses that you can afford to buy, drive-by them and check out the surrounding neighborhood. Check insid pictures of the homes. These steps may help you eliminating homes from the list to see. Next make an appointment with your real estate agent to view the interior of the ones you are interested in.
10. After you have narrowed your selection to few houses you wish to buy it is important to visit them at different times of the day. Visit them during the morning commute time. If you visit only during the middle of the day, you might not notice if the street in front of the home is used as a minor thoroughfare or a shortcut. This is also a good time to find out how you emerge from you residential area into traffic on a thoroughfare or how long it takes for freeway access. Go back after dark and walk around the block. You might notice that headlights from approaching traffic shine into the home or hear sounds from a nearby night club or park that you were not aware of.
11. After previewing a number of homes, you will want to preview some (the ones you think of writting an offer for) a second time.This is the time to make measurements, ask questions and make a closer self-inspection. When you want to make an offer, ask your agent for sales comps to arrive at an offering price. A "seller's market" or "buyer's market" can have big effect on how much to offer. There is no sense in making a low offer on a well priced home in a seller's market.
A properly written contract will allow a buyer a number of outs if certain items are not met or approved. Get a copy of a typical real estate contract prior to making an offer and have your agent go over it with you. To find out what prices homes are listed for in areas you are considering, go to your local MLS (my site is featuring it at www.usaRUSSIArealty.com).
12. Even though you are pre-approved, the amount you are preapproved for may not be comfortable for you.
1. Before you actively look at homes to buy, it's necessary to know how much you can qualify for. Use mortgage calculators to determine how much you can buy with your down payment and closing cost money and what your monthly payments will be.
2. Know Your Credit Worthiness
3. Look at your credit report before you go to a lender. It is not uncommon to find problems with reports, especially if you have a common last name. To get copies of your credit report, start at fico.com.
4. Get Pre-Approved
After you see your credit report and any problems are cleared up, get pre-approved with a lender. Take the steps necessary to get a letter from the lender stating you are "pre-approved" or "pre-qualified" for a loan in a specific price range. It's important to have this letter before you make a contract offer to buy real estate. Once you are pre-approved, you know what price range of homes you should be looking at.
5. Find a Realtor, and provide pre-approval letter to him or her, so she/he can use it correctly in writting an offer in the near future.
6. What Kind of House is Right?
Determine the specifics you want and need in a home. (Keep in mind your price range, determine what your first priorities are vs. something you would like to have)
Ø What are your day to day and future needs?
Ø Do you enjoy swinging a hammer?
Ø Older houses have great charm, but may need updating.
Ø New homes offer the latest energy efficiency and design features. (in Salt Lake County, there are certain georgraphical place where easier to find new home or older ones)
Ø Larger lots can give room for additions and swimming pools.
Ø A fixer upper can dramatically increase in worth.
Ø A PUD may have private recreational facilities such as a pool and play parks.
Ø A condo or town-house will relieve you of yard work and exterior maintenance.
7. Sit down with your real estate agent and make up a wants and needs list. Knowing your price range, your agent can determine in what neighborhoods or towns to start looking. You may find that you are limited to where you look based on your situation. There is no sense in wasting your or your agent's time in areas out of your price range. The agent will show you how the lis of available homes is getting reduced based on things (search criterias) you have to have in your future homes. The agent will advice you of either narrowing you search (by providing more criterias) or making it broader (because there are too few places to choose from).
8. Little more on Wants and Needs
Ø Price range
Ø Building style/design
Ø New construction
Ø Remodeled
Ø Fixer upper
Ø Minimum # bedrooms
Ø Bathrooms
Ø Family room
Ø Fire place
Ø Office/den
Ø Hardwood floors
Ø Swimming pool / Spa
Ø In-law quarters
Ø Workshop
Ø Central air conditioning
Ø Parking facilities
Ø Yard size
Ø School district
Ø Work locations
Ø Special zoning or location
9. With a list of houses that you can afford to buy, drive-by them and check out the surrounding neighborhood. Check insid pictures of the homes. These steps may help you eliminating homes from the list to see. Next make an appointment with your real estate agent to view the interior of the ones you are interested in.
10. After you have narrowed your selection to few houses you wish to buy it is important to visit them at different times of the day. Visit them during the morning commute time. If you visit only during the middle of the day, you might not notice if the street in front of the home is used as a minor thoroughfare or a shortcut. This is also a good time to find out how you emerge from you residential area into traffic on a thoroughfare or how long it takes for freeway access. Go back after dark and walk around the block. You might notice that headlights from approaching traffic shine into the home or hear sounds from a nearby night club or park that you were not aware of.
11. After previewing a number of homes, you will want to preview some (the ones you think of writting an offer for) a second time.This is the time to make measurements, ask questions and make a closer self-inspection. When you want to make an offer, ask your agent for sales comps to arrive at an offering price. A "seller's market" or "buyer's market" can have big effect on how much to offer. There is no sense in making a low offer on a well priced home in a seller's market.
A properly written contract will allow a buyer a number of outs if certain items are not met or approved. Get a copy of a typical real estate contract prior to making an offer and have your agent go over it with you. To find out what prices homes are listed for in areas you are considering, go to your local MLS (my site is featuring it at www.usaRUSSIArealty.com).
12. Even though you are pre-approved, the amount you are preapproved for may not be comfortable for you.
Tuesday, October 2, 2007
Monday's Bond Market
Monday's bond market has opened in positive territory following a weaker than expected manufacturing related report. The stock markets are also showing gains with the Dow up 114 points and the Nasdaq up 22 points. The bond market is currently up 12/32, but we will likely still see an increase in this morning's mortgage rates of approximately .250 of a discount point due to weakness late Friday.
Today's news came from the Institute for Supply Management (ISM) who said that their manufacturing index for September fell to 52.0. This was lower than expected, indicating that manufacturer sentiment is waning. This is good news for bonds and mortgage rates because it could mean slowing manufacturing activity. That could ease inflation concerns and make mortgage-related bonds more attractive to investors.
Today's news came from the Institute for Supply Management (ISM) who said that their manufacturing index for September fell to 52.0. This was lower than expected, indicating that manufacturer sentiment is waning. This is good news for bonds and mortgage rates because it could mean slowing manufacturing activity. That could ease inflation concerns and make mortgage-related bonds more attractive to investors.
Thursday, September 6, 2007
Mortgage Bond are flat
"Mortgage Bonds are flat after yesterday's rally, but now Traders are looking ahead to tomorrow's important Jobs Report.
Current estimates are for 110,000 new jobs created; however, if the number is much worse than expected, we will probably see bonds improve. But any rally may be tempered, since many Traders may already be factoring in a miss.
If the number comes in stronger than expected--which I don't think will happen, but if it does--Bonds will drop sharply, causing home loan rates to rise.
I feel the prudent play is to be conservative and Lock ahead of the Jobs Report."
Current estimates are for 110,000 new jobs created; however, if the number is much worse than expected, we will probably see bonds improve. But any rally may be tempered, since many Traders may already be factoring in a miss.
If the number comes in stronger than expected--which I don't think will happen, but if it does--Bonds will drop sharply, causing home loan rates to rise.
I feel the prudent play is to be conservative and Lock ahead of the Jobs Report."
Thursday, August 30, 2007
MORTGAGE MARKETS
"The market volatility continues as Mortgage Bonds are trading higher after yesterday’s 34 basis point sell-off. Prices still remain below a very tough and now tested ceiling of resistance at the 200-day Moving Average.
The Preliminary Gross Domestic Product, or GDP, for the second quarter was revised to 4.0%, which was slightly below expectations of 4.1%. The number is better than Q1, but still a bit on the slow side.
Traders will be very focused on tomorrow's action which includes a speech from Fed Chair Ben Bernanke and the release of the Core Personal Consumption Expenditure; the Fed’s favorite measure of consumer inflation.
For today, I am recommending to float ahead of tomorrow's events."
The Preliminary Gross Domestic Product, or GDP, for the second quarter was revised to 4.0%, which was slightly below expectations of 4.1%. The number is better than Q1, but still a bit on the slow side.
Traders will be very focused on tomorrow's action which includes a speech from Fed Chair Ben Bernanke and the release of the Core Personal Consumption Expenditure; the Fed’s favorite measure of consumer inflation.
For today, I am recommending to float ahead of tomorrow's events."
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