Possibly! The Federal Reserve said Tuesday it will maintain the pace of it's $600 billion Treasury bond buying program because the economy is still too weak to bring down high unemployment. The Fed's purchases are intended to lower long-term interest rates, lift stock prices and encourage spending. It's decision not to increase its purchases rattled bond investors, who fear a tax cut plan in Congress could fuel enough growth to drive up interest rates.
The worry is that the Fed's bond buying plan won't achieve its goal of reducing long-term rates. After the Fed issued its statement, Treasury prices sank, pushing their yields higher and mortgage interest rates higher today. The 10 yr. Treasury note jumped to it's highest level since May....and the 10 yr. note helps set rates on many kinds of loans including mortgages.
With this said, higher mortgage rates could slow, and potentially derail the economy's progress. It will be very interesting to see how this bond buying plan affects the economy and mortgage interest rates over the next few months. Please let me know if you have any questions about your current mortgage financing situation or if I can be of assitance to any of your friends, family members or co-workers.
Happy Holidays!
Tuesday, December 14, 2010
Thursday, December 9, 2010
6 smart steps every new homeowner should take
What could be more exciting than taking the leap from renter to first-time homeowner? You can turn the key in a lock that no landlord has access to, read in a hammock in your own backyard and paint your dining room bright red. Some first-time homeowners get swept up in all the excitement and make mistakes that can jeopardize everything they've worked so hard to earn. Don't be one of those people that makes 1 of these seven mistakes so you can ensure that your first home becomes the place of luxury and financial freedom you expected it to be.
Don't overspend on furniture and remodeling
You've just handed over a large portion of your life savings for a down payment, closing costs and moving expenses. Money is tight for most first-time homeowners. Not only are their savings depleted, but their monthly expenses are often higher as well, thanks to new expenses such as water and trash bills and extra insurance.
You've just handed over a large portion of your life savings for a down payment, closing costs and moving expenses. Money is tight for most first-time homeowners. Not only are their savings depleted, but their monthly expenses are often higher as well, thanks to new expenses such as water and trash bills and extra insurance.
Everyone wants to personalize a new home and upgrade what may have been temporary apartment furniture for something nicer, but don't go on a massive spending spree to improve everything all at once. Just as important as getting your first home is staying in it, and as nice as solid maple kitchen cabinets might be, they aren't worth jeopardizing your new status as a homeowner. Give yourself time to adjust to the expenses of homeownership and rebuild your savings; the cabinets will still be waiting for you when you can more comfortably afford them.
Don't ignore important maintenance items
One of the new expenses of homeownership is making repairs. There is no landlord to call if your roof is leaking or your toilet is clogged (on the plus side, there is also no rent-increase notice taped to your door on a random Friday afternoon when you were looking forward to a nice weekend). While you should exercise restraint in purchasing the nonessentials, you shouldn't neglect any problem that puts you in danger or could get worse over time, turning a relatively small problem into a much larger and costlier one.
One of the new expenses of homeownership is making repairs. There is no landlord to call if your roof is leaking or your toilet is clogged (on the plus side, there is also no rent-increase notice taped to your door on a random Friday afternoon when you were looking forward to a nice weekend). While you should exercise restraint in purchasing the nonessentials, you shouldn't neglect any problem that puts you in danger or could get worse over time, turning a relatively small problem into a much larger and costlier one.
Hire qualified contractors
Don't try to save money by making improvements and repairs that you aren't qualified to make. Your home is both the place where you live and an investment, and it deserves the same level of care and attention you would give to anything you value highly. There's nothing wrong with painting the walls yourself, but if there's no wiring for an electric opener in your garage, don't cut a hole in the wall and start playing with copper. Hiring professionals to do work you don't know how to do is the best way to keep your home in top condition and avoid injuring — or even killing — yourself.
Don't try to save money by making improvements and repairs that you aren't qualified to make. Your home is both the place where you live and an investment, and it deserves the same level of care and attention you would give to anything you value highly. There's nothing wrong with painting the walls yourself, but if there's no wiring for an electric opener in your garage, don't cut a hole in the wall and start playing with copper. Hiring professionals to do work you don't know how to do is the best way to keep your home in top condition and avoid injuring — or even killing — yourself.
Get help with your tax return
Even if you hate the thought of spending money on an accountant when you normally do your returns yourself, and even if you're already feeling broke from buying that house, hiring an accountant to make sure you complete your return correctly and maximize your refund is a good idea. Homeownership significantly changes most people's tax situation and the deductions they are eligible to claim. Getting your taxes professionally done for one year can give you a template to use in future years if you want to resume doing your taxes yourself. And remember, tax-preparation expenses are tax deductible, so whatever your marginal tax rate is, think of that as a discount on the cost of the service.
Even if you hate the thought of spending money on an accountant when you normally do your returns yourself, and even if you're already feeling broke from buying that house, hiring an accountant to make sure you complete your return correctly and maximize your refund is a good idea. Homeownership significantly changes most people's tax situation and the deductions they are eligible to claim. Getting your taxes professionally done for one year can give you a template to use in future years if you want to resume doing your taxes yourself. And remember, tax-preparation expenses are tax deductible, so whatever your marginal tax rate is, think of that as a discount on the cost of the service.
Don't confuse a repair with an improvement
Unfortunately, not all home expenses are treated equally for the purpose of determining your home's basis. The Internal Revenue Service considers repairs to be part and parcel of homeownership — something that preserves the home's original value but does not enhance its value. This may not always seem true. For example, if you bought a foreclosure and had to fix a lot of broken stuff, the home is obviously worth more after you fix those items, but the IRS doesn't care — you did get a discount on the purchase price because of those unmade repairs, after all. Only improvements, such as replacing the roof or adding central air conditioning, will help decrease your future tax bill when you sell your home.
Unfortunately, not all home expenses are treated equally for the purpose of determining your home's basis. The Internal Revenue Service considers repairs to be part and parcel of homeownership — something that preserves the home's original value but does not enhance its value. This may not always seem true. For example, if you bought a foreclosure and had to fix a lot of broken stuff, the home is obviously worth more after you fix those items, but the IRS doesn't care — you did get a discount on the purchase price because of those unmade repairs, after all. Only improvements, such as replacing the roof or adding central air conditioning, will help decrease your future tax bill when you sell your home.
or gray areas (like remodeling your bathroom because you had to bust open the wall to repair some old, failed plumbing), consult IRS Publication 530 and/or your accountant. And on a nontax-related note, don't trick yourself into thinking it's OK to spend money on something because it's a necessary "repair" when in truth it's really a fun improvement. That isn't good for your finances.
Get properly insured
Your mortgage lender requires you not only to purchase homeowners insurance, but also to purchase enough to fully replace the property in the event of a total loss. But that's not the only insurance coverage you need as a homeowner. If you share your home with anyone who relies on your income to help pay the mortgage, whether it's a girlfriend or a child, you'll need life insurance with that person named as a beneficiary so he or she won't lose the house if you die unexpectedly. Similarly, you'll want to have disability insurance to replace your income if you become so disabled that you can't work.
Also, once you own a home, you have more to lose in the event of a lawsuit, so you'll want to make sure you have excellent car-insurance coverage. If you are self-employed as a sole proprietor, you may want to consider forming a corporation for greater legal protection of your assets. You may also want to purchase an umbrella policy that picks up where your other policies leave off. If you are found at fault in a car accident with a judgment of $1 million against you and your car insurance covers only the first $250,000, an umbrella policy can pick up the rest of the slack. These policies are usually issued in the millions.
Wednesday, November 17, 2010
Mortgage Rates Heading Higher
Mortgage Rates are .25% higher from last week at this time. This also translates that the same rate a week ago that you could have gotten for NO Points, now will probably cost you anywhere from .75% - 1% in fees. Something to keep in mind too, are that mortgage rates tend to go UP a lot faster than they go down - so they might stay up a bit for a while. I will be posting weekly rates for your convenience starting next week.
If you have any questions about financing, please don't hesitate to reach out to me. I'm happy to help you with all of your mortgage needs! Have a great rest of your day.
If you have any questions about financing, please don't hesitate to reach out to me. I'm happy to help you with all of your mortgage needs! Have a great rest of your day.
Thursday, July 22, 2010
Thursday, June 10, 2010
Thursday, May 20, 2010
30 Year Mortgage Rate Falls Close to Record Low
U.S. 30-year mortgage rates fell in the past week to the lowest level since early December, near record lows, with shorter-term home loans at new all-time lows, home funding company Freddie Mac said on Thursday.
The 30-year rate averaged 4.84 percent in the week ended May 20, down from 4.93 percent and the lowest rate since the week ended Dec. 10, 2009.
At its lowest on record, dating back to 1971, the rate fell to 4.71 percent in the week ended Dec. 3.
Treasury 10-year note yields, used as a peg for setting long-term mortgage rates, have also fallen to the lowest levels since early last December. Those yields have fallen on a flight to safety into Treasuries on fear that $1 trillion in emergency funding for struggling euro zone debt markets is not sufficient.
Low mortgage rates are helping stabilize the U.S. housing market just as massive federal aid has been withdrawn.
If you know of anyone that is looking to take advantage of these excellent interest rates, please give them my contact information. Your Referrals are appreciated!
The 30-year rate averaged 4.84 percent in the week ended May 20, down from 4.93 percent and the lowest rate since the week ended Dec. 10, 2009.
At its lowest on record, dating back to 1971, the rate fell to 4.71 percent in the week ended Dec. 3.
Treasury 10-year note yields, used as a peg for setting long-term mortgage rates, have also fallen to the lowest levels since early last December. Those yields have fallen on a flight to safety into Treasuries on fear that $1 trillion in emergency funding for struggling euro zone debt markets is not sufficient.
Low mortgage rates are helping stabilize the U.S. housing market just as massive federal aid has been withdrawn.
If you know of anyone that is looking to take advantage of these excellent interest rates, please give them my contact information. Your Referrals are appreciated!
Monday, May 10, 2010
Dow up 405
which has affected interest rates in a negative way....
http://articles.moneycentral.msn.com/Investing/Dispatch/default.aspx?feat=1753319
http://articles.moneycentral.msn.com/Investing/Dispatch/default.aspx?feat=1753319
Wednesday, May 5, 2010
Tuesday, April 27, 2010
First Time Home Buyer Tax Credit Extension - $6,500 And $8,000 Credits Set To Expire On April 30th
A first time home buyer tax extension has been a very hot topic in Washington this past week. The tax credits are set to expire on April 30th, and many first time and move up buyers are wondering if there is gonig to be another extension. At this time it looks as if there will no extension and the expiration will take place on Friday.
I will keep you updated regarding the extension. Let me know if you have any questions.
I will keep you updated regarding the extension. Let me know if you have any questions.
Tuesday, April 20, 2010
Are You Looking to Refinance or Purchase a New Home?
Now is a great time to do either one of these if you're thinking about it while interest rates are still very low.
Refinancing : there are many programs available that are designed to help homeowners refinance even if you're underwater and your home value has gone down like in most cases these days. You can potentially save several hundred dollars monthly to go along with skipping 1-2 months of your current mortgage payments. With interest rates still very good, it's a great opportunity to take advantage of these Home Affordable Refinance Programs that won't be around for much longer.
Purchases : the same goes for purchasing a new home. I'm hoping the government decides to extend the tax credit again as this one ends April 30th, that will be a great incentive to upgrade your home or get a tax credit if you're a First Time Home Buyer. The home inventory is very high and prices are low, it's a great opportunity to get into your dream home at an affordable price.
Please don't hesitate to reach out to me so I can do an individual mortgage analysis and see what you can qualify for. I look forward to hearing from you and please refer any friends, family members or co-workers that are in the market as well.
Have a great rest of your day and week! Take care ~
Refinancing : there are many programs available that are designed to help homeowners refinance even if you're underwater and your home value has gone down like in most cases these days. You can potentially save several hundred dollars monthly to go along with skipping 1-2 months of your current mortgage payments. With interest rates still very good, it's a great opportunity to take advantage of these Home Affordable Refinance Programs that won't be around for much longer.
Purchases : the same goes for purchasing a new home. I'm hoping the government decides to extend the tax credit again as this one ends April 30th, that will be a great incentive to upgrade your home or get a tax credit if you're a First Time Home Buyer. The home inventory is very high and prices are low, it's a great opportunity to get into your dream home at an affordable price.
Please don't hesitate to reach out to me so I can do an individual mortgage analysis and see what you can qualify for. I look forward to hearing from you and please refer any friends, family members or co-workers that are in the market as well.
Have a great rest of your day and week! Take care ~
Wednesday, April 14, 2010
Fed Stopped buying Mortgage Backed Securities ; What happens to Mortgage Rates now?
Mortgage Rates took a major beating last week after the FED officially stopped buying mortgage backed securities. If last week was any indication this is not going to be a slow rise in interest rates as a lot of experts had predicted.
From what I've seen so far, we are definitely looking at mid to high 5% by the end of the year, if not higher.
If you we're looking to buy a house and had a Pre-Approval done, it may be a good idea to get it reviewed again by your lender. An already .25% increase in rate means that you may not qualify for the same amount of mortgage that you did 1 or 2 weeks back. And, if you are looking to refinance, your opportunity to get a low rate may be limited.
If you like to be updated on the mortgage market on a daily basis and hence the mortgage rate market is moving, follow my blog.
From what I've seen so far, we are definitely looking at mid to high 5% by the end of the year, if not higher.
If you we're looking to buy a house and had a Pre-Approval done, it may be a good idea to get it reviewed again by your lender. An already .25% increase in rate means that you may not qualify for the same amount of mortgage that you did 1 or 2 weeks back. And, if you are looking to refinance, your opportunity to get a low rate may be limited.
If you like to be updated on the mortgage market on a daily basis and hence the mortgage rate market is moving, follow my blog.
Thursday, April 8, 2010
HomeBuyers Scramble As Mortgage Rates Rise
Here is a great article that I thought I'd share.
http://www.msnbc.msn.com/id/36231595/ns/business-real_estate
Interest Rates as we have learned to know them are soon to be on the rise. If you're looking to either refinance or purchase a new home, now would be the time as these historically low interest rates won't be around much longer. Give me a call if you have any questions.
http://www.msnbc.msn.com/id/36231595/ns/business-real_estate
Interest Rates as we have learned to know them are soon to be on the rise. If you're looking to either refinance or purchase a new home, now would be the time as these historically low interest rates won't be around much longer. Give me a call if you have any questions.
Friday, April 2, 2010
First Time Home Buyer Tax Credit Ends on April 30th - Time Is Running Out!!!
The expiration of the first time home buyer tax is April 30th and so many buyers will be scrambling to get under contract before this date to qualify. It will be very interesting to see if there is an extension to this Tax Credit (again). If there is going to be an extension it is going to have to come very soon.
The housing market has shown signs of stabilization but there is still a long way to go. It will be interesting to see how the Obama Administration crunches the numbers when it come to the economy and home prices. Some markets still yet to recover and the tax credit may help if extended.
This is a great opportunity if you're looking to buy a home, but time is running out. Please contact me if you have any other questions regarding this tax credit or anything else related to home financing. I look forward to hearing from you.
J
The housing market has shown signs of stabilization but there is still a long way to go. It will be interesting to see how the Obama Administration crunches the numbers when it come to the economy and home prices. Some markets still yet to recover and the tax credit may help if extended.
This is a great opportunity if you're looking to buy a home, but time is running out. Please contact me if you have any other questions regarding this tax credit or anything else related to home financing. I look forward to hearing from you.
J
Thursday, March 25, 2010
Bank of America to reduce mortgage principal for some homeowners
This won't apply to everyone, only about 45,000 homeowners across the nation but think this is a great avenue for homeowners who aren't able to refinance or underwater currently.
http://seattletimes.nwsource.com/html/businesstechnology/2011432198_mortgages25.html
Please don't hesitate to call or email me if you have any questions or want me to do a quick mortgage analysis. Take care ~
http://seattletimes.nwsource.com/html/businesstechnology/2011432198_mortgages25.html
Please don't hesitate to call or email me if you have any questions or want me to do a quick mortgage analysis. Take care ~
Tuesday, March 23, 2010
2 Refinancing Options If You're Underwater
Government-backed programs can help with refinancing for homeowners who don't have equity in their property.
Homeowners whose mortgage balance exceeds the current property value know the futility of trying to refinance. Refinancing options for so-called "underwater" mortgages are limited because most lenders require some equity in the property - ideally about 20 percent.
However, borrowers should NOT give up hope. Options do exist, especially via the governments Making Home Affordable program.
First option: HARPIf you meet certain criteria, your underwater loan may be eligible for a refinance through the federal Home Affordable Refinance Program, or HARP. The program allows qualified borrowers to refinance a loan that is from 105% to as high as 125% of a home's value.
However, not every underwater loan qualifies for HARP. First, you must not be on the road to foreclosure: Any delinquent payments in the past 12 months will automatically disqualify you from eligibility.
Second, either Fannie Mae or Freddie Mac must own the loan. You can find a loan lookup tool and other calculators at the government's Making Home Affordable Web site.
Please don't hesitate to reach out to me if you have any questions or concerns about your current mortgage loan or have friend, family member or co-workers that are interested let me know. I can run a quick mortgage analysis and find out if you qualify. Look forward to hearing from you.
Homeowners whose mortgage balance exceeds the current property value know the futility of trying to refinance. Refinancing options for so-called "underwater" mortgages are limited because most lenders require some equity in the property - ideally about 20 percent.
However, borrowers should NOT give up hope. Options do exist, especially via the governments Making Home Affordable program.
First option: HARPIf you meet certain criteria, your underwater loan may be eligible for a refinance through the federal Home Affordable Refinance Program, or HARP. The program allows qualified borrowers to refinance a loan that is from 105% to as high as 125% of a home's value.
However, not every underwater loan qualifies for HARP. First, you must not be on the road to foreclosure: Any delinquent payments in the past 12 months will automatically disqualify you from eligibility.
Second, either Fannie Mae or Freddie Mac must own the loan. You can find a loan lookup tool and other calculators at the government's Making Home Affordable Web site.
Please don't hesitate to reach out to me if you have any questions or concerns about your current mortgage loan or have friend, family member or co-workers that are interested let me know. I can run a quick mortgage analysis and find out if you qualify. Look forward to hearing from you.
Tuesday, February 23, 2010
Nearly 25% of all mortgage are underwater
NEW YORK (CNNMoney.com) -- More bad news on the housing bust front: Nearly 25% of all mortgage borrowers were underwater, meaning they more on their loans than their homes are worth.
First American CoreLogic, the research firm that monitors housing equity, reported Tuesday that 11.3 million homeowners -- or 24% of all homes with mortgages -- were underwater as of the end of 2009. That's up from 23% and 10.7 million borrowers three month earlier.
Nevada was the state with the worst record at 70% of all mortgaged properties underwater. That was followed by Arizona (51%), Florida (48%), Michigan (39%) and California (35%).
For many homeowners, being underwater, also know as negative equity, has few consequences. If they're not planning to sell and can afford their monthly bills, they can wait out the downturn.
Foreclosures: Where does your state rank?
For others, however, plunging underwater can spell disaster. If they become unemployed or have a financial emergency, they have no equity to tap. Or, if they need to downsize or sell their home to relocate for a job, they can't.
"Negative equity is a significant drag on both the housing market and on economic growth,"said Mark Fleming, chief economist with First American CoreLogic. "It is driving foreclosures and decreasing mobility for millions of homeowners."
Traditionally, being underwater was one of two main factors in determining a borrower's likelihood of foreclosure. The other is having sufficient income to pay bills. But, there's an increasingly important exception: strategic default. As equity gets more and more negative, some homeowners are choosing to quit paying and give the keys to the bank.
As long as negative equity remains a big problem, it will be difficult to stem the tide of foreclosures that continue to plague many local real estate markets around the nation.
"Since we expect home prices to slightly increase during 2010, negative equity will remain the dominant issue in the housing and mortgage markets for some time to come,"
First American CoreLogic, the research firm that monitors housing equity, reported Tuesday that 11.3 million homeowners -- or 24% of all homes with mortgages -- were underwater as of the end of 2009. That's up from 23% and 10.7 million borrowers three month earlier.
Nevada was the state with the worst record at 70% of all mortgaged properties underwater. That was followed by Arizona (51%), Florida (48%), Michigan (39%) and California (35%).
For many homeowners, being underwater, also know as negative equity, has few consequences. If they're not planning to sell and can afford their monthly bills, they can wait out the downturn.
Foreclosures: Where does your state rank?
For others, however, plunging underwater can spell disaster. If they become unemployed or have a financial emergency, they have no equity to tap. Or, if they need to downsize or sell their home to relocate for a job, they can't.
"Negative equity is a significant drag on both the housing market and on economic growth,"said Mark Fleming, chief economist with First American CoreLogic. "It is driving foreclosures and decreasing mobility for millions of homeowners."
Traditionally, being underwater was one of two main factors in determining a borrower's likelihood of foreclosure. The other is having sufficient income to pay bills. But, there's an increasingly important exception: strategic default. As equity gets more and more negative, some homeowners are choosing to quit paying and give the keys to the bank.
As long as negative equity remains a big problem, it will be difficult to stem the tide of foreclosures that continue to plague many local real estate markets around the nation.
"Since we expect home prices to slightly increase during 2010, negative equity will remain the dominant issue in the housing and mortgage markets for some time to come,"
Why Are There No More Stated Income Loans?
It wasn’t all that long ago that there was the “perfect” loan for people who were small business owners and had very little income according to their tax returns.
They had all different kinds of names – most of them sounded pretty cool at the time. NINJA, NINA, STATED, NO DOC, LOW DOC and I am sure quite a few other names — just to name a few. There wasn’t a week that went by where some lender somewhere didn’t come out with a new loan for some market segment that up to that point was unable to obtain financing.
Had bad credit?
No problem – there was a loan program available for you.
Didn’t have any income?
Again, no problem — there was a loan program for you too.
Just filed bankruptcy?
Yep, there was a loan program for you — as long as you were at least one day out of bankruptcy.
And then it all changed.
Almost as quickly as they came, the various loan programs with cool sounding names went away.
And although there are many factors as to them going away, perhaps no factor was as big in the elimination of stated income loans as the 4506T.
The 4506T is a document that allows the lender to go and pull your tax returns with the IRS for the last few years. Prior to only a couple of years ago, virtually no lender required that you signed the 4506T when applying for a loan. Now, I am not aware of a lender who will give you a loan without a signed 4506T on file.
And although that isn’t the only reason that stated income loans went away — it is one of the biggest. Now, rather than just making you provide your income documentation prior to underwriting your loan application, most lenders now require that you also sign the 4506T so that they can actually verify that your income is correct.
And I think it was one of the wise-old-Presidents who once said:
Trust but verify.
They had all different kinds of names – most of them sounded pretty cool at the time. NINJA, NINA, STATED, NO DOC, LOW DOC and I am sure quite a few other names — just to name a few. There wasn’t a week that went by where some lender somewhere didn’t come out with a new loan for some market segment that up to that point was unable to obtain financing.
Had bad credit?
No problem – there was a loan program available for you.
Didn’t have any income?
Again, no problem — there was a loan program for you too.
Just filed bankruptcy?
Yep, there was a loan program for you — as long as you were at least one day out of bankruptcy.
And then it all changed.
Almost as quickly as they came, the various loan programs with cool sounding names went away.
And although there are many factors as to them going away, perhaps no factor was as big in the elimination of stated income loans as the 4506T.
The 4506T is a document that allows the lender to go and pull your tax returns with the IRS for the last few years. Prior to only a couple of years ago, virtually no lender required that you signed the 4506T when applying for a loan. Now, I am not aware of a lender who will give you a loan without a signed 4506T on file.
And although that isn’t the only reason that stated income loans went away — it is one of the biggest. Now, rather than just making you provide your income documentation prior to underwriting your loan application, most lenders now require that you also sign the 4506T so that they can actually verify that your income is correct.
And I think it was one of the wise-old-Presidents who once said:
Trust but verify.
Thursday, February 18, 2010
Fed Just Raised Discount Rate For First Time In 3 Years
The Fed raised the discount rate which won't bode well for interest rates. If you're thinking of refinancing or purchasing a home right now, I would recommend acting fast as this is probably just the beginning of rates on the rise. Below is an article....
Feb. 18 (Bloomberg) -- The Federal Reserve Board raised the discount rate charged to banks for direct loans by a quarter point to 0.75 percent and said the move will encourage financial institutions to rely more on money markets rather than the central bank for short-term liquidity needs.
“These changes are intended as a further normalization of the Federal Reserve’s lending facilities,” the central bank said today in a statement. “The modifications are not expected to lead to tighter financial conditions for households and businesses and do not signal any change in the outlook for the economy or for monetary policy.”
The dollar jumped and Treasuries extended losses as the Fed took another step in a gradual retreat from its unprecedented actions to halt the deepest financial crisis since the Great Depression. The Fed has provided hundreds of billions of dollars in backstop credit to banks, bond dealers, commercial paper borrowers and troubled financial institutions such as American International Group Inc.
The U.S. currency rose to $1.3541 per euro at 4:40 p.m. from $1.3616 before the announcement, while the yield on two- year Treasuries increased to 0.93 percent from 0.87 percent.
The discount rate increase is effective on Feb. 19. The Board also said that effective March 18 “the typical maximum maturity for primary credit loans will be shortened to overnight.”
January Statement
The Fed Board said the outlook for policy remains “about as it was at the January meeting of the Federal Open Market Committee.” The central bank also cited last month’s statement, which said economic conditions are likely to warrant “exceptionally low” levels of the federal funds rate “for an extended period.”
It was the first increase in the discount rate in more than three years.
Feb. 18 (Bloomberg) -- The Federal Reserve Board raised the discount rate charged to banks for direct loans by a quarter point to 0.75 percent and said the move will encourage financial institutions to rely more on money markets rather than the central bank for short-term liquidity needs.
“These changes are intended as a further normalization of the Federal Reserve’s lending facilities,” the central bank said today in a statement. “The modifications are not expected to lead to tighter financial conditions for households and businesses and do not signal any change in the outlook for the economy or for monetary policy.”
The dollar jumped and Treasuries extended losses as the Fed took another step in a gradual retreat from its unprecedented actions to halt the deepest financial crisis since the Great Depression. The Fed has provided hundreds of billions of dollars in backstop credit to banks, bond dealers, commercial paper borrowers and troubled financial institutions such as American International Group Inc.
The U.S. currency rose to $1.3541 per euro at 4:40 p.m. from $1.3616 before the announcement, while the yield on two- year Treasuries increased to 0.93 percent from 0.87 percent.
The discount rate increase is effective on Feb. 19. The Board also said that effective March 18 “the typical maximum maturity for primary credit loans will be shortened to overnight.”
January Statement
The Fed Board said the outlook for policy remains “about as it was at the January meeting of the Federal Open Market Committee.” The central bank also cited last month’s statement, which said economic conditions are likely to warrant “exceptionally low” levels of the federal funds rate “for an extended period.”
It was the first increase in the discount rate in more than three years.
Zip Realty offers "augmented reality"
Pretty cool!
ZipRealty has added augmented reality capabilities to its iPhone application, allowing users to determine whether a home is for sale -- or has recently sold -- simply by pointing their phone's camera at it.
As users point their phone's camera in different directions, the "HomeScan" feature of ZipRealty's iPhone app displays the address and distance to any properties that are for sale or have recently sold as they come into view.
A "radar" embedded in the app suggests which direction to point the phone to see more homes for sale or recently sold properties -- including those that are behind the user.
Clicking on a listing shows all details, including prices, interior photos, square footage and value estimates from Cyberhomes and eppraisal.
The ZipRealty iPhone app shows homes for sale in more than 4,000 cities and neighborhoods where the brokerage operates, and recently sold homes nationwide. Although the HomeScan augmented reality capabilities are available only on 3GS iPhones, users can search for and access all MLS-listed homes for sale from any iPhone or iPod touch. ZipRealty clients can connect with their agents directly though the application.
Augmented reality is software for mobile devices that uses the device's location-sensing capabilities to overlay Web data on images of the physical world where the device is located, Joseph Ferrara explained in a recent Inman News column.
"The physical world, in effect, becomes the user interface to digital information. It's a sort of middle ground for reality and virtual reality," Ferrara said.
The technology has "big implications for all kinds of local search tools, but particularly in real estate," said real estate technology consultant Joel Burslem in a guest perspective about Layar, a European company that helps software developers build and customize data overlays.
Trulia announced in December that it had integrated the Layar Mobile Augmented Reality Browser into the company's iPhone app, allowing listings data to be overlaid in the mobile phone's camera view.
ZipRealty has added augmented reality capabilities to its iPhone application, allowing users to determine whether a home is for sale -- or has recently sold -- simply by pointing their phone's camera at it.
As users point their phone's camera in different directions, the "HomeScan" feature of ZipRealty's iPhone app displays the address and distance to any properties that are for sale or have recently sold as they come into view.
A "radar" embedded in the app suggests which direction to point the phone to see more homes for sale or recently sold properties -- including those that are behind the user.
Clicking on a listing shows all details, including prices, interior photos, square footage and value estimates from Cyberhomes and eppraisal.
The ZipRealty iPhone app shows homes for sale in more than 4,000 cities and neighborhoods where the brokerage operates, and recently sold homes nationwide. Although the HomeScan augmented reality capabilities are available only on 3GS iPhones, users can search for and access all MLS-listed homes for sale from any iPhone or iPod touch. ZipRealty clients can connect with their agents directly though the application.
Augmented reality is software for mobile devices that uses the device's location-sensing capabilities to overlay Web data on images of the physical world where the device is located, Joseph Ferrara explained in a recent Inman News column.
"The physical world, in effect, becomes the user interface to digital information. It's a sort of middle ground for reality and virtual reality," Ferrara said.
The technology has "big implications for all kinds of local search tools, but particularly in real estate," said real estate technology consultant Joel Burslem in a guest perspective about Layar, a European company that helps software developers build and customize data overlays.
Trulia announced in December that it had integrated the Layar Mobile Augmented Reality Browser into the company's iPhone app, allowing listings data to be overlaid in the mobile phone's camera view.
Wednesday, February 10, 2010
Fed Chairman Bernanke outlines plan for pulling in stimulus aid
This article is another indication that rates will be on the rise at some point in the near future. Fed Chairman Bernanke hints at raising interest rates.
http://http://seattletimes.nwsource.com/html/businesstechnology/2011032563_apusbernankeexitstrategy.html
If you are thinking of refinancing your current home loan or purchasing a new home, now is a better time than any to act on it or at least get a quick mortgage analysis done. History shows that interest rates will be on the rise soon. Call or email me if you have any questions or concerns.
http://http://seattletimes.nwsource.com/html/businesstechnology/2011032563_apusbernankeexitstrategy.html
If you are thinking of refinancing your current home loan or purchasing a new home, now is a better time than any to act on it or at least get a quick mortgage analysis done. History shows that interest rates will be on the rise soon. Call or email me if you have any questions or concerns.
Wednesday, February 3, 2010
Foreclosures and Short Sales
Thought this was a good informative article regarding foreclosures and short sales that all homeowners need to know about.
http://finance.yahoo.com/news/Mortgage-lenders-pursue-cnnm-3107909798.html?x=0
If you have any questions please don't hesitate to reach out.
http://finance.yahoo.com/news/Mortgage-lenders-pursue-cnnm-3107909798.html?x=0
If you have any questions please don't hesitate to reach out.
Will Mortgage Rates Really Soar Back Up When the Fed Exits the Market?
http://seattletimes.nwsource.com/html/businesstechnology/2010965369_apustreasuryborrowing.html
That is the million dollar question and I wish I had a crystal ball. Most everybody (including me) expects mortgage rates to rise once the Fed concludes their $1.25 trillion mortgage shopping spree on March 31st or at some point in the near future.
Estimates vary, but most expect rates to vary by .25% - .75% when the Fed is done purchasing mortgage backed securities and treasuries to keep these rates low. But there is a more optimistic take which speculates that mortgage rates will stay low even without the Fed's direct intervention.
The more optimistic view definitely hinges on the government still playing a huge roll in the mortgage market. If this view is right, then the end to the Fed purchases/spending won't even cause a ripple in interest rates. That would be ideal obviously with homeowner's still trying to lower their interest rate via refinance to go along with first time home buyers trying to take advantage of this tax credit and low interest rates. According to the article in Seattle Times, the Fed is looking to increase their ceiling amount to spend on mortgage backed securities to keep these rates low - we'll see if that gets approved.
All in all, it sounds like the Fed is trying to come up with a way to keep these mortgage rates low (for now). I beleive that the economy will have to be clearly improving before we see to much in the way of higher mortgage rates. I will keep you updated on this subject though.
If you're thinking about refinancing or purchasing a home, now is definitely the time as who knows when these low rates will start the upward trend. Please contact me with any questions. Take care ~
That is the million dollar question and I wish I had a crystal ball. Most everybody (including me) expects mortgage rates to rise once the Fed concludes their $1.25 trillion mortgage shopping spree on March 31st or at some point in the near future.
Estimates vary, but most expect rates to vary by .25% - .75% when the Fed is done purchasing mortgage backed securities and treasuries to keep these rates low. But there is a more optimistic take which speculates that mortgage rates will stay low even without the Fed's direct intervention.
The more optimistic view definitely hinges on the government still playing a huge roll in the mortgage market. If this view is right, then the end to the Fed purchases/spending won't even cause a ripple in interest rates. That would be ideal obviously with homeowner's still trying to lower their interest rate via refinance to go along with first time home buyers trying to take advantage of this tax credit and low interest rates. According to the article in Seattle Times, the Fed is looking to increase their ceiling amount to spend on mortgage backed securities to keep these rates low - we'll see if that gets approved.
All in all, it sounds like the Fed is trying to come up with a way to keep these mortgage rates low (for now). I beleive that the economy will have to be clearly improving before we see to much in the way of higher mortgage rates. I will keep you updated on this subject though.
If you're thinking about refinancing or purchasing a home, now is definitely the time as who knows when these low rates will start the upward trend. Please contact me with any questions. Take care ~
Thursday, January 28, 2010
FHA-Insured Mortgage Update
I knew changes in FHA-insured loans were coming. Now it appears they are almost here. Last week, the FHA said it would tighten loan requirements on loans it insures. Specifically, it would raise the MIP to 2.25% from 1.75% - effective this spring - and then seek permission to increase the percentage again.
The FHA also proposed requiring borrowers with credit scores below 580 to put up a 10% down payment. Those with higher credit scores would still qualify for a 3.5% down payment. In addition, the FHA proposed reducing seller concessions to 3% from 6% of the mortgage. Both proposals will require public comment period before taking effect.
These changes coupled with the fact that the First Time Home Buyers tax credit will be expiring on April 30th, 2010 - is more than enough information to start really thinking about purchasing now and not later. Please do not hesitate to reach out to me if you have any questions regarding the pre-approval process.
Take care ~
The FHA also proposed requiring borrowers with credit scores below 580 to put up a 10% down payment. Those with higher credit scores would still qualify for a 3.5% down payment. In addition, the FHA proposed reducing seller concessions to 3% from 6% of the mortgage. Both proposals will require public comment period before taking effect.
These changes coupled with the fact that the First Time Home Buyers tax credit will be expiring on April 30th, 2010 - is more than enough information to start really thinking about purchasing now and not later. Please do not hesitate to reach out to me if you have any questions regarding the pre-approval process.
Take care ~
Thursday, January 21, 2010
$8,000 Refundable Tax Credit for First Time Home Buyers and Others
The $8,000 tax credit for first time homebuyers has been extended through April 30th, 2010 and even more people are included. This stimulus package also includes a $6,500 tax credit offered to homebuyers who have lived in their current residence at least five years and who want to "move up" to buy a NEW primary residence. The purchase and sale contract needs to be mutually signed by 4/30/10 while the home loan needs to be closed by 6/30/10. This is great news for anyone that is trying to buy a home. Here are a few guidelines regarding the tax credit for your reference :
- Refundable : The credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of withholding they paid during the year was less than that amount.
- Paperwork : Applying for the credit will be easy or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers should need to be filed. Taxpayers who have alredy completed their returns can file amended return for 2008/2009 to claim their credit.
- Income Restrictions : To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. ( Higher income buyers may receive a partial but not full credit )
If you have any questions about this tax credit and if you qualify for one, please don't hesitate to reach out to me. I'm more than happy to run a quick mortgage analysis for you.
Take care ~
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