Archive for the 'Real Estate News' Category
Real Living Lifestyles is sponsoring Mike Ferry from the Mike Ferry Organization on June 10th from 9:30-12:30 in Carlsbad at the Carlsbad Dove Library Theater.
Mike has been a Trainer and Coach for Top Real Estate Agents all over the country for the past 25+ years and Real Living Lifestyles has Mike coming to present a special training for their agents and local agents in the community.
Real Living Lifestyles Management has made a decision for the past several years to make an investment in our agents by becoming a member of the Executive Management Program at the Mike Ferry Organization. We take the education of our agents very seriously. As the Director of Training & Education I am proud to say that our agents also feel staying educated is very important. In fact last year our agents, through the Executive Management Program at the Mike Ferry Organization participated in over $100,000 worth of training and the company picked up the tab. Our agents are entrusted with what is normally our clients most valuable asset “their home” and it is of the utmost of importance that we are sure we do everything we can to represent them to the best of our ability, and keeping our agents educated is a big part of that commitment to our clients.
People continually ask us how have we had such great growth numbers over the past several years in one of the worst economies ever, and how are we opening offices and expanding 50% of our offices and we say” It is because of our people”! We are fortunate to be surrounded by our highly professional agents and broker associates here at Real Living Lifestyles (Formally Exclusive Properties* Exclusive Properties) that go above and beyond for their buying and selling clients. Our culture breeds success and it shows in not only our agents but the testimonials we receive from our clients about how well they have been served.
Our goal is also to reach out to the rest of the real estate community and offer educational opportunities as well. If you are an agent that would like to attend this event please call our office at 760-931-6111 ask for Cheri and let her know you would like to attend and she will add you to the RSVP list for this Mike Ferry Event on June 10th.
“*Exclusive Properties is a registered trademark of Exclusive Properties Real Estate Services Company, a Washington corporation. No affiliation between Exclusive Properties and Real Living exists or is implied.”
Fannie Mae loan limits for high-balance mortgage loans are scheduled to expire on September 30, 2011. Barring congressional actions, the “temporary” loan limits now in place will expire on that date and loans with mortgage note dates on or after October 1, 2011 will be subject to the “permanent” limits. Many of our clients and agents have questions regarding the expiration. The following are some of the most frequently asked questions.
Are the loan limits definitely expiring? What would it take for them to get extended or changed from the permanent loan limits?
Congress would have to take action to extend or revise the temporary loan limits, which were originally put in place through the Economic Stimulus Act of 2008 and have been extended through a series of additional legislative actions to provide support to the mortgage market during the U.S. housing crisis. The most recent extension for Fiscal Year (FY) 2011 occurred last fall under a continuing resolution. The February report to Congress by the Departments of Treasury and Housing and Urban Development (HUD) stated “the Administration recommends that Congress allow the temporary increase in limits that was approved in 2008 to expire as scheduled on October 1, 2011 and revert to the limits established under HERA [Housing and Economic Recovery Act].” As such, Fannie Mae does not expect any further extensions.
What will happen in 2012? Could the permanent loan limits go down?
As a result of the permanent authority for HCA loan limits established under HERA, the Federal Housing Finance Agency (FHFA) is required to evaluate loan limits annually, and revise limits accordingly. The first set of HERA loan limits (a.k.a. “permanent” loan limits) was established for calendar year 2009 based on the median home prices for the HCA Metropolitan Statistical Areas (MSAs) provided by the Federal Housing Administration (FHA)/HUD. While there have been median home price declines over the past three years, FHFA followed a policy to “not permit declines relative to the prior HERA limits.”
Several months ago, FHFA and Fannie Mae published the permanent loan limits applicable to loans originated on or after October 1, 2011, and which are acquired by Fannie Mae in 2011. Therefore, no changes are expected to those permanent limits between October 1, 2011, and December 31, 2011. FHFA has not indicated whether it will continue its policy of not permitting declines in HERA-based limits beyond 2011. If FHFA does not maintain its policy of not permitting declines in the HERA-based HCA loan limits, 2012 loan limits could decline from those that will apply in the fourth quarter of 2011.
FHFA has not yet published the HERA-based limits applicable to loans Fannie Mae will acquire in 2012, nor has it indicated when it will do so. However, standard practice has been for FHFA to release the upcoming year’s limits in mid-November each year.
Are you expecting any eligibility and pricing changes related to this expiration?
None is expected at this time.
How many borrowers are affected by the expiration of the temporary limits?
According to Fannie Mae a relatively small number of borrowers needing to finance loans are in the affected range. Certain markets will be significantly affected. Data gathered by the FHFA on acquisitions of these loans by the government-sponsored enterprises (GSEs) in 2010 showed significant clustering of the larger-balance mortgages in California and a small number in other states. According to the FHFA data, roughly 6 out of 10 of loans originated with loan amounts above the permanent limits but meeting the temporary limits came from California. Massachusetts, New York, and New Jersey collectively accounted for a further 20 percent. Twenty-six U.S. states had no purchase by the GSEs of the higher-balance loans.
The expiration of the temporary loan limits will certainly affect the interest rates a borrower will pay on a loan over $417,000. The current spread between a Fannie Mae 30 year fixed and a Jumbo 30 year fixed is around .6%. In the summer of 2008 the average spread was .2%. This spread is likely to narrow over time as credit conditions improve. The most important factor will be the expansion of jumbo product into the market place which we will cover in our next post.
The expiration of high balance loan limits coupled with the historically low and artificially deflated interest rates all point to this being one of the best opportunities to purchase or refinance a home.
Countywide Mortgage Update – Home Buyers and Sellers: Two Important Events That Will Affect You Very Soon
If you are planning to either purchase or sell a property this year, there are two scheduled events coming up rapidly that may have a significant impact on you:
Higher Interest Rates?
On July 1st the Federal Reserve will complete its $600 Billion dollar purchases of US Treasury Bonds. Many analysts believe that with the Fed pulling out of the Treasury market, demand for such bonds will lessen, causing interest rates including mortgages to rise.
More Expensive Loans?
On October 1st the current conforming “jumbo” loan limit in San Diego County is scheduled to be reduced from $697,500 to $625,500 (or lower). For home buyers looking to purchase a home in the approximate price range of $500,000 to $900,000, this will push them into the limited, “true” jumbo loan category. Such jumbo rates and prices are significantly higher than current conforming rates.
What This Means
While no one knows what, if anything, the Federal government may do about these two scheduled events, the impacts are quite clear:
- For home buyers higher rates will mean higher payments and reduced buying power. For those buyers in the $500-$900,000 price range these effects will be magnified by the lack of conforming jumbo loans resulting in even higher rates and costs to obtain financing.
- For home sellers these two events will reduce the number of available buyers, especially in the price range noted above.
** THE MESSAGE IS CLEAR ** The next several months may prove to be the absolute best time this year (and beyond) to buy or sell that home. Contact your Real Living Lifestyles real estate agent today, get the facts and get moving now!
for more information – Paul Gonzales, Countywide Mortgage Lending (760) 746-7388 [email protected], CA-DOC290493
Cajon Classic Cruise
April 13, 2011
Cruisin Grand Escondido Every Friday Night!
April 15, 2011
April 15, 2011Taste of Hillcrest
April 16, 2011
April 30 – May 1, 2011 Scrapbook Expo
April 29 – 30, 2011 Del Mar Nat’l Horse Show
April 21 – May 8, 2011 Sharons Ride Run Walk for Epilepsy
April 17, 2011 La Jolla Shores 5K
April 17, 2011 La Jolla Half Marathon
April 17, 2011 Oceanside Days of Art
April 16 – 17, 2011 Coronado Flower Show
April 16 – 17, 2011 Fallbrook Paws in the Park
April 16, 2011 Lakeside Western Days Rodeo
April 15 – 17, 2011 Head to Toe Women’s Expo
April 15 – 17, 2011 Del Mar Antique Show
April 15 – 17, 2011
April 16, 2011
Fallbrook Avocado Festival
April 17, 2011
Cajon Classic Cruise
April 20, 2011
April 22, 2011
April 27, 2011
Cruisin Grand Escondido
April 29, 2011
Adams Avenue Roots Festival
April 30 – May 1, 2011
Are you curious about where green real estate is heading in 2011…. a great Sustainability Consultant had the following predictions for Green Real Estate in 2011:
- Green Value will replace Green Hype.
- In green building certification circles, Energy Star overtakes LEED.
- ROI measurement becomes easier for investors.
- Opportunity is rapidly becoming obligation.
- Green products-faster, cheaper, more abundant.
- In 2010, approximately 40%* of your target market (buyers/renters) understood the value of paying more for green homes/apartments and were willing to pay a premium for those amenities. That number should double in 2011.
For more details go to Green Hype VS. Green Value.