Monday, June 27, 2011

Apartment style home in Encinitas

"Condo conversion" 2 bedroom second floor apt style home for sale 180k price, 4% approx cash needed for down payment. Encinitas blvd one and a half miles to
Beach. 858-232-3813

Wednesday, March 9, 2011

FHA: a bit costlier April 18th

70% of buyers across the country are using FHA insured loans. They require a small down payment relative to a conventional loan. In return for that benefit, FHA buyers pay a slightly higher interest rate and also a mortgage insurance premium.

The Change In short:
Starting April 18th, mortgage insurance premiums on FHA loans will increase $25 for every $100K in loan amount. A 400k property will add $100 a month extra to your monthly. So long as buyers are in contract and the FHA case number is in place prior to April 18th, buyer will not be affected.

To put the change in perspective, it is approximately a 5% increase in monthly payment. I am not a mortgage guy, but i think that is accurate.  

All in all, if you aren't ready before Mid April, no big deal, it will still be a great time to buy this spring. 

If you are dancing to buy, my FHA loan gal can get you going before April 18th.

As always, contact me to start a conversation.

Tuesday, March 8, 2011

Renovation Lending!

Hey guys. This is for entry level or first time buyers, mostly. There is a great loan product called 203k, it is FHA's rehab loan. With this loan a borrower can purchase or refinance a home and receive additional money for repairs or renovations. The interest rate is slightly, or about .5% higher than normal, yet it can still be advantageous in some cases to help you get some exciting upgrades..

As you know, FHA loans can be had for as low as 3.5-5% down payment. If you buy a $300,000 home that is approximately $15,000 to buy and move in to the best possible "Savings Account" and of course Home.

Exciting Examples of Repairs using the Rehab loan for upgrading your dream house:

  • Room Addition
  • New Flooring
  • Organism Damage
  • Landscape
Contact me to ask how the process works, if this would work for you, and where to start the process.

Friday, February 11, 2011

Are we at the bottom?

Whether we have hit the bottom in terms of price is under debate, but certainly we have hit the bottom as far as cost of buying and owning a home.

When you can pay less for a mortgage than in rent in many cases that tells you about the type of market we are in and why you should ask a professional about how you can buy a home.

3 Simple Tips for selling a home and getting the most money

Thursday, February 10, 2011

The Cash Buyer Effect

Buyers paying all cash for homes has doubled to 28% of total buyers since 2008 when 14% of buyers paid all cash. 

28% of the market nationwide is huge. Cash Buyers are certainly contributing to the market by significantly reducing the the downward trend of prices.

As you know, it is impossible to time the bottom of the market, and cash buyers know this also. What I mean is, timing the market or trying to, is not their first priority only because, their investment is a long term hold strategy, providing monthly cash flow, and eventual appreciation. 

Even as a buyer with 4% or 20% down payment, you do not want to succumb to temptation of lower prices. Why? 
Even if prices drop more or even drastically... as interest rates rise, your cost of home ownership will rise even more drastically.

File:Median and Average Sales Prices of New Homes Sold in the US 1963-2010 Monthly.png

30% of Homeowners are...

30% of homeowners have negative equity in their primary residence. It seems as if Being 'underwater' on your mortgage becoming unpopularly normal . The bright side is, in many cases, home owners are at least paying a reasonable payment, one similar to renting, and having a great time living there and raising a family. Another bright side is there are several ways to avoid foreclosure.

Two thought here for people on the fence of selling to consider.

One might call the first an optimist. A homeowner who still has a bit of equity in the home hoping that the market will turn around, and stop going down, which is the current trend in most market places and has been for 4-6 years, depending. The problem for the optimist in this case is that, when their hope is based on a false premise of the market reality or none at all, it is just that, hope..

The second school, although some might consider pessimistic, is really what our modern western markets feed off in a downswing. Real Estate and Stocks. For instance, when the herd is selling, by choice or by default, prices drop, and as you know the herd mentality is very real among the masses and thus regular homeowners are thinking of this and of course distressed sales are continuing to peak.

If you like your home, great, I'm happy for you.

If you are planning to sell and move in the near future, or if you are in a position to get some equity out now or if that equity is important to your life plans in the next few years, consider about the difference between hoping on false premise or media, versus expecting based on reality. Please contact me to see what your market is doing or i can connect you to a good real estate person in your market if you don't know one.