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.
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