Archive for the 'Mortgages & Loans' Category
Time To Get Answers: Tuesday April 22, 2008 Buyer Seminar
April 20th, 2008 Categories: Around Arlington County, Buyers, Mortgages & Loans, Nauck, Neighborhoods, Real Estate News, Shirlington
Save the date– this coming Tuesday, April 22, 2008– AFTER WORK!
My office has gotten together to sponsor a buyer seminar– GET YOUR QUESTIONS ANSWERED!
Put down the Washington Post Real Estate Section for the night and talk to real estate people who are on the front line of today’s market.
* Learn why FHA is not your grandmother’s mortgage anymore
* Talk to a Loan Officer– no commitments
* Learn the state of the Arlington Market
* Is buying a Short Sale or Foreclosure property really for you?
* What happens AFTER I found the home of my dreams?
There is a reason why it’s called a BUYER’S MARKET! IT’s THE TIME TO BUY!!!
OK– that’s all the slogans I’m going to use.
This is a real seminar for people who have thinking of buying a home at sometime in their lives. We’re going to be there to answer your questions. There is no hard sell.
It’s an opportunity for you to speak with real professionals who are working in the front lines of this market.
Got a place to sell? Come by to find out what’s going on in the market. We’ll answer your questions. We won’t turn anyone away.
And– we’ll have snacks!
So come out on Tuesday night– make the time. There’s plenty of free parking. And when they ask you how you heard about this– tell them I sent you. Or meet me to see that I’m a real person!
WHERE:
North Fairlington Community Center
3005 S. Abingdon Street
Arlington, VA 22206
TIME:
6:30–8:30PM
Make the commitment: call (703–772–5555) or email to RSVP.
BUT– don’t let that stop you. Come anyway.
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Don’t Spend It All In One Place
February 14th, 2008 Categories: Mortgages & Loans, Real Estate News
This president loves to tell Americians to go out and spend money. So now you can. Don’t spend it all in one spot.
| Discussion: 1 Comment »
Is America Depressed?
January 23rd, 2008 Categories: Local Real Esate Sales Numbers & Things, Mortgages & Loans
I turned on the TV news on Tuesday morning to the news that the stock market was down 400 points and the Fed has cut the interest rate almost a whole point!
My first thought was: Our government is really scared.
This is the same administration that has been wearing rose colored glasses for the past year. They kept saying that the market will work itself out. It’s the hands off administration that thinks its only job is to solve the crisis in the Middle East- one that’s been going on for thousands of year. I never understood why every American president feels that they are going to be the one to solve a conflict that has been going on for centuries. (But that’s for another day.)
Then I remembered it’s an election year. It’s like a game of musical chairs for the party holding office in the White House when the music stops playing. They will be seen as the one left standing.
I am not a student of economics by any means. And every time I write about the mortgage “crisis” I do a lot of homework and research about what I’m writing. This time I’m just writing about what I see and feel.
I can’t help but wonder if the American public is depressed.
We’re tired of this current state of affairs. In the past few years everything we pay for has gone up in price: gas, food, taxes and health care. Everything except our paychecks. We feel like that hamster in the tread mill– working hard just to stay in place.
Our young men and women are overseas at war. We don’t know who to believe about what’s going on over there. We have sadly come to the realization that we are going to be there for a long time. Even if we still want it to end.
Then we start hearing these presidential candidates telling us about all our problems and how they are going to solve them. They talk about hope and change and new beginnings. We didn’t know we had it so bad until they kept reminding us.
We see our neighbors losing their homes because they didn’t understand what they were getting into and think: Am I next?
We hear about layoffs, and talk about recessions and hope that we can keep our jobs.
And it’s winter and cold and dark.
No wonder we’re depressed. But we can’t take prozac because we have no health insurance.
Now the government comes to the rescue with plans of stimulus packages and temporary tax relief to “jump start” the economy. Our legislators think that putting $200 in everyone’s pocket will solve our problems. Or that cutting interest rates is going to encourage people to buy a home. Or are they just worried about getting re-elected?
I think the American public is ready for their next president. We are ready for something new and bold and different. That’s what will get us out of our funk. Is it November yet?
| Discussion: 4 Comments »
5 Reasons Why Bankers Should Never Sell Real Estate
January 8th, 2008 Categories: Buyers, Local Real Esate Sales Numbers & Things, Mortgages & Loans
The first week of 2008 has come and gone and I find myself busy with work. Which surprises me because it’s Janaury for gosh sakes. No one likes to buy real estate in January. But that’s really not what’s happening. There are people out there buying real estate. I think it’s smart to buy real estate in January in a cold state. Just like it’s good to buy real estate in August in Florida. Turns out there is little competition with other buyers.
Now, you might be thinking– what competition? There are no buyers out there anyway. Well– I have learned the secret rule of real estate: As soon as you want a property– so does someone else. If you are someone planning to buy real estate, don’t wait forever: there are other buyers out there.
I don’t know what is going to happen in the DC real estate market in 2008. I can only speculate. But as someone who works in the business everyday– I don’t see many changes in this market.
- Interest rates are still reasonably low: still around 6%
- Inventory of homes is good: there is a lot to chose from
- Sellers still want to sell their homes: people want to get on with their lives
So: what are your plans for your life in 2008? Is this the year you take that step to advance it? or is it just going to be more of the same. Come on, open the door to the rest of your life.
| Discussion: No Comments »
Freddie Mac Reaches Out
December 14th, 2007 Categories: Mortgages & Loans, Real Estate News, Sellers
It’s still too early to tell if the president’s compromise for the sub-prime mortgage “crisis” will have an impact on the recent increase of short sale properties. But I’m glad to see that Freddie Mac is starting to get the word out about mortgage fraud.
Thanks to Teresa Boardman and her great St. Paul Real Estate Blog for getting the word out. I’m adding it here as a public service announcement. I hope my other real estate blog buddies will add it to their sites to spread the word.
Before you sign anything– take the paperwork to a lawyer for review. Don’t be in a rush to sign anything. Don’t feel pressured into signing ANYTHING. Bring the paperwork to a lawyer. Maybe you think you can’t afford a lawyer– if you are in such a position, please contact a legal aid society. They may be able to help.
When we are in crisis and feel overwhelmed looking at foreclosure- we reach out to anyone who says they can help. Don’t be afraid to talk to your lender. Remember– they don’t want to own your home.
But, if you are behind on your mortgage and don’t know where to turn, call the National Foreclosure Hotline’s toll free number for help:
1–888–995–HOPE
Related Posts:
Bush’s Rate Freeze: An Early Christmas Present or Coal in Your Stocking?
| Discussion: 13 Comments »
Bush’s Rate Freeze: An Early Christmas Present or Coal in Your Stocking?
December 6th, 2007 Categories: Buyers, Mortgages & Loans, Real Estate News, Sellers
President Bush plans to announce, today, a compromise policy to freeze interest rates for some sub-prime mortgages for a period of 5 years.
Expect an afternoon joint press conference with the Treasury Department and members of the mortgage industry that negotiated this deal.
While the exact terms of the plans have not been officially announced, the Internet in buzzing with most of the plan’s details.
Here is what I could find:
- The plan is aimed at homeowners who are making payments on time at lower introductory mortgage rates but cannot afford a higher adjusted rate;
- The plan would apply to borrowers with loans made at the start of 2005 through July 30 2007 with rates that are scheduled to rise between Jan. 1, 2008, and July 31, 2010;
- The program would only be available for owner-occupied homes;
- Borrowers whose credit scores are below 660 out of a possible 850 and haven’t risen by 10 percent since the loan was sold will be given priority. Those with scores above 660 will be more closely scrutinized to determine whether they are eligible or must continue making payments under existing terms, said the person.
Why am I skeptical?
“Hi. I’m from the government and I’m here to help.”
- It’s always tricky when the government gets involved with the natural free market. While there are many people in the mortgage industry that are begging for a bail-out program– it may be a bandaid for a hemorrhage;
- It’s going to lead to confusion out there in the short term, many new home buyers are going to wait, once again, to see what happens to the market;
- Many of these “short sale” properties are coming off the market;
- Housing prices may actually rise again in the spring. We may be back to a sellers market;
- People who are going to take advantage of this plan SHOULD BE negotiating with their mortgage lender a solid affordable rate for a 30 year mortgage– but will instead, do nothing, ride out this five-year waiting period and will be in the same position as they are now;
- People with good credit scores (i.e, above 660), but will still have problems meeting their newer mortgage payments are going to up in arms;
- It’s still uncertain what this will do to interest rates for new loans. They will have to stay low. Interest rates are the single most important thing regular people consider when deciding to buy. (They don’t realize that prices go up when this actually happens.)
I’m not an economist so I don’t really know the short-term or long-term impact this is going to have the real estate market in our area. I’m interested to see the reaction today after the plan is officially announced.
One thing is certain: There is a presidential election coming so anything is possible.
I’d like to hear from you, what do you think of this new plan?
| Discussion: 12 Comments »
Let’s Take a Real Look At Interest Rates
November 13th, 2007 Categories: Buyers, Local Real Esate Sales Numbers & Things, Mortgages & Loans, Real Estate News
A few days ago I wrote a post on the history of interest rates over the last 30 years. I talked about trends and fluctuations. The chart from that post showed the trends in mortgage interest rates over the past 30 years have been in a steady decline and are now leveling of.
While it’s easy to look back over time to see that this is one of the best time to buy real estate, most people don’t realize that there is also a best time of YEAR to buy real estate.
To prove my point, I used Freddie Mac data from 2006 & 2007. I charted the monthly average for both years (Nov & Dec 07 are null points) and found that in 2007, interest rates have actually been lower for most of the year when compared to 2006.
What I found interesting is that in both years, interest rates peaked in July for that year and then decreased for the remaining year.
What does this all mean? If you are most concerned about the interest rate of your next mortgage- don’t wait to buy in the spring, buy now.
Take a browse through the MLS to see what’s on the market and email me with your questions. Even better- sign up for your own email alerts for new listings!
| Discussion: 3 Comments »
It Ain’t All Bad. A Historical View of Interest Rates
November 5th, 2007 Categories: Buyers, Mortgages & Loans, Real Estate News, Sellers
At least once a week my broker forwards an email to all her agents from the head of Prosperity Mortgage. In case you don’t know, Prosperity Mortgage Virginia is a joint venture between Wells Fargo and Long & Foster. It isn’t Wells Fargo- but uses mainly Wells Fargo products, in addition to other products.
Ok- with that disclosure out of the way, I wanted to talk about interest rates. Because, well quite frankly, that’s the first thing that people ask with they start looking for a home.
“
What are interest rates?” I think people ask that question because they don’t know enough to ask anything else. Buying a mortgage is more than just considering an interest rate. It’s the big picture of how much are you paying now to live where you are, what are housing pricing doing, how do you want to live your life?
Interest rates are not static, they change and often. They trend and they fluctuate.
What Is A Trend?
A trend is something that happens over time. For instance, if you look at my chart, you will see that between 1983 and 1993 interest rates clearly trended down. It’s no coincidence that during this time short-term ARM products became popular. It’s easy to see the trend when you are looking back over time. It’s not as easy when you are in the middle of a
trend like today.
What Is A Fluctuation?
A fluctuation is a data point in a trend that can go up or down and often considered a random movement. If you look at that same time period 1983–1993, you will see that, although interest rates trended downward, not all data points were less than the one before. For example, in 1993, interest rates averaged 7.31% over the entire year, and then jumped in 1994 to 8.38%.
Interest Rates Trend Year-To-Year, but Fluctuate Month-to-Month
Mortgage interest rates are seasonal. They have high points & low points during the year. It’s easy to think of it this way: the colder the weather the lower the interest rates. Why is that? Because people don’t like to buy a new home or move in the colder months. Ok so maybe that’s not a scientific explanation- but I speak from experience.
If we have a warm winter, real estate numbers will be up. If we have a cold winter with snow or ice storms, real estate numbers will be down. August, everyone goes on vacation, so people do something else than look for homes.
You want to panic and cry that the bottom is falling out of the real estate market– ok–
that’s your opinion. But you are looking at this market as a snap shot, I do it everyday.
No one has a crystal ball. Predicting interest rates is no different that prediction the stock market. One thing is for certain, over time you are always ahead.
If you are making your decision based only on what you read in the newspaper or seeing on TV, maybe you are just finding an excuse not to buy a home- that’s ok. It’s your life and money. But if you are serious about becoming a home owner, call or email me or Peter Blizniak or Harsh Patel- both great loan officers. Everyone’s situation is different. I’m not shy in telling people, based on their situation, it just may be better for them to wait.
| Discussion: 3 Comments »
The Mortgage Lending Plot Thickens…cont’d
August 5th, 2007 Categories: Buyers, Mortgages & Loans, Real Estate News
The traditional finance media will be all all a buzz with the story– Bear Sterns head resigns on a Sunday in August.
This isn’t a good sign.
I hope all the mortgage bloggers out there will explain this impact to the average person who doesn’t have a finance degree and just wants to buy a house.
| Discussion: 1 Comment »
The Mortgage Lending Plot Thickens….
August 5th, 2007 Categories: Buyers, Mortgages & Loans, Real Estate News
As I continue to study what impact the sub-prime mortgage crash will have on the ordinary buyers who wants to own the place in which they live and the local real estate market here inside the beltway, I’d like to share some “must reads” with my people.
It appears that potential buyers who:
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-
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- were expecting to do 100% financing,
- have less than stellar credit, or
- work on commission, or otherwise self-employed,
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are going to be paying more for a mortgage than before. It’s too early to tell whether that’s good or bad for the overall health of the real estate market. One thing is for sure, we are moving back to a time when only people who can truly afford to buy real estate are going to. Brian Brady, from BloodhoundBlog.com explains it very clearly, while USA Today gives the facts of how the large lenders have modified their lending practices.
Brian Brady, contributor to BloodhoundBlog.com: The Mortgage Tax Act of 2007
USA Today Article about Wells Fargo and other lenders change in lending practices
Is Bear Sterns the Root Cause?
The inside baseball of the whole situation involves Bear Sterns and it’s hedge fund. I’m not a financial expert on Wall Street– but watch this YouTube Video of Jim Cramer on CNBC to appreciate his “I’m mad as hell and I’m not going to take it anymore” attitude.
Is the Federal Reserve asleep at the switch? Should Ben Beranke (the new Alan Greenspan) lower interest rates to slow the rate of foreclosures across the country? My degree is in engineering not economics or finance– so I’m smart enough not to answer that question -but, instead search out the experts. From what I’ve seen, everyone has a different opinion.
One thing is for certain- this situation is just beginning.
My focus and interest in this topic is to try to bring it back to plain English for someone who is thinking about buying a home and carrying a mortgage. I can tell you for certain– if you have cash to use as a down payment, have a good credit history, and use a reputable mortgage company– you will be OK.
This just in….as I get ready to post this, Sunday evening news briefs are reporting that Bear Sterns will be ousting its leader in its next board meeting Monday 8/6/07. Like I said- this is just beginning.
The Fed meets Tuesday– let’s see what happens….
| Discussion: 4 Comments »