The Selling Season
Posted by Bill Menish | Leave A Comment »
A realtor friend who I respect immensely made a comment to me about the end of the season. Not football, baseball or soccer, but the end of the “Selling Season” in Real Estate. It had been a good season for her, but it was over, or so she said. I was shocked. Here it is, early June, and according to my friend, the market was going onto life support, with just a hint of a pulse remaining.
Now as a former journalist, I am programmed to be skeptical, but this time, no programming was needed. I just didn’t believe what I was hearing. Prices are ridiculously low, especially in the high end market and interest rates keep dropping. As I am writing this, rates have dropped again to as low as 4.25%. And the season is done? I don’t think so.
Now I don’t know why so many buyers are still on the fence. Is it the job market? Is it cable news stations and their never ending diatribe of gloom and doom? Is it the European markets? Or is it all of the above?
All I know is that in my lifetime, there have been many times when I have looked back and said, “I should have done that.” Whether it was being too afraid to ask out a certain girl, only to find out after she was married that she had wanted me to, or that certain stock that I should have gambled on, and all the ones I shouldn’t have.
Yes, hindsight is 20/20. But you don’t need perfect vision to see the opportunity before us now. When a nearby house is on the market for $1.4 million, down from $2.3 million, that is a good buy yesterday, today and tomorrow. When you can get an interest rate on a home as low as 4.25%,that is a great opportunity yesterday, today and tomorrow.
Folks, the season is not over. In fact, in my estimation, we are in the early innings and I expect some serious action in the not too distant future.
Related Posts: Agent Services, Industry Updates, San Diego
Affordable Loans for California Public Schools Emplyoees – Get the Facts
Posted by Diane White | Currently 2 Comments »
Do you work for, or have worked in the past, the California Public School System? If so you are most likely eligible for the CalSTRS 80/17 Loan.
Some of the highlights of this program are:
- 3% down payment
- It is a 30 year fixed interest loan broken into two loans:
- 1st is for 80%
- 2nd is for 17%
- 2nd loan is at same interest rate as first – with no payments for 5 years
- No PMI (Private Mortgage Insurance)
- Conforming 1st loan amount up to $417,000
- Non-conforming 1st loan amount up to $536,082
Eligible Properties are:
- Owner-occupied single family homes
- Approved condos
- Approved attached and detached PUD’s
Eligible Borrowers are:
- Member of the California State Teacher’ Retirement System
- Employees of a California public school district
- Employees of a California Community College
- CalSTRS employees
It is a wonderful program which gives back to those employees that make our schools systems one of the best around! Ask your lender if this loan program is for you, or let me know if you would like any recommendations.
On another and seperate note…the Federal 1st time homebuyer IRS tax credit is running out. Escrow must be opened by April 30th and closed by June 30th. Call me if you want to take advantage of a possible $8,000 tax credit.
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Related Posts: Buyers, Financial news, Home Loans, Interest Rates, Real Estate News, San Diego, Uncategorized, tax credit
Mortgage Rates Still In A Fantastic Place
Posted by Kevin Kueneke | Currently 1 Comment »
When rates shot up a month or so ago, we saw many potential San Diego real estate buyers get cold feet since 30 year fixed rates in the 4’s were gone. These buyers felt that the home of their dreams was no longer available if their rate was not under 5%. Face it, we were all spoiled. 
I remember in 1994 when conforming “A” paper first mortgage rates were as high as 10% and people were still buying homes. This was immediately following the first real refinance boom of our time (1992-1993) when rates were down to 6% or so.
Those that were in the industry in the ’80’s tell tales of rates in the 13’s and 14’s. So a rate just over 5% is not a good deal…?
How much of a difference does it make if the rate is just under 5% vs. just over 5%? The payment on a $400,000 loan at 5.125% is only $62 more than at 4.875%. The payment on a $200,000 loan at 5.125% is only $31 more than at 4.875%.
If you are a buyer that thinks a rate above 5% is high, call or email me and I can show you the payment difference for your particular price range. You might be pleasantly surprised.
**FHA, VA, High Balance Conforming buyers should also call. Your rates are great as well!
Email: Kevin@MyCWMtg.com Phone: (760)500-1919
Related Posts: CW Mortgage, Financial news, Home Loans, Interest Rates, Mortgage News, San Diego
FHA, FNMA, and FHLMC Loan Limits In San Diego Returned To $697,500!
Posted by Kevin Kueneke | Leave A Comment »
Well, it looks like the “new and improved” stimulus bill will have an immediate effect on mortgages. Fannie Mae (FNMA), Freddie Mac (FHLMC), and the Federal Housing Administration (FHA) have announced that they are reinstating last year’s high balance conforming loan limits.
For 2008, FNMA and FHLMC, as well as FHA, would insure loan amounts up to $697,500 in San Diego. Any loan greater than that number was considered a Jumbo loan. Unfortunately, that loan limit dropped to $546,250 effective for loans closing on or after January 1, 2009. That meant that anyone looking to buy or refinance San Diego real estate could pay an interest rate as much as 2% higher than if borrowing the true conforming loan amount of $417,000.
However, the recently passed H.R. 1, also known as the American Recovery and Reinvestment Act, restores the higher limit of $697,500. In some areas, such as Los Angeles and Orange Counties, the restored loan limit is $729,750 up from $625,500 earlier this year.
These higher loan limits are often referred to as Conforming Plus or High Balance Conforming loans. FHA loans that exceed $417,000 in San Diego County may be referred to as FHA Jumbo loans.
This is great news for those borrowers that are looking to purchase or refinance in today’s low interest rate environment. Conventional buyer’s can now purchase a $775,000 home with only a 10% down payment.
Questions? Please feel free to email me today.
Related Posts: Buyers, CW Mortgage, Financial news, Home Loans, Homeowners, Interest Rates, Mortgage News, Real Estate News
What about Real Estate Scares You?
Posted by Mark Loscher | Leave A Comment »
Franklin D. Roosevelt said, “The only thing we have to fear is fear itself.”
In times like these, facts are what we need to focus on. Below is a 13 month look at interest rates. If you couple this trend with the enormous number of buyers that have been hitting the streets lately, the news is good.
It is important to reinforce to everyone that our economy is designed to have ups and downs, that is how we adjust.
During these periods of adjustments it is always better to deal with facts rather than fear. We will pull out of this current period of adjustment and the housing market will most likely lead the way, much like they lead the way in.
The good news is, if you are a buyer there has never been a better time for you. There are many options to consider, all of them positive for the buyer, low interest rates and low prices to name two. If you are a seller, the good news is there are many more buyers today than there have been for many months and multiple offers are back.
So, look at the facts of the situation and know that the current market adjustments are necessary, can be helpful, and will end. The facts I read say we are heading toward the end of this adjustment period.
This chart is only one of those facts that point to a positive trend.
More facts to come, stay tuned.
Related Posts: Area Statistics, Buyers, Financial news, Home Loans, Homeowners, Interest Rates, Market Trends, Mortgage News, Real Estate News
