Queercents

Mortgage rates continue rising at a much faster than expected pace, and that has put many homeowners into a quandary regarding whether or not to go through with refinance plans. Some lucky homeowners snagged rates as low as 4.65 percent in April and May, as extremely affordable mortgages inspired a tremendous surge in new home loan applications as well as mortgage refinances. But then interest rates on 30-year fixed-rate mortgages jumped nearly a percentage point within just two weeks between May and June, climbing from 5.0 percent to 5.79 percent. Now the big question on everyone’s mind is whether or not it is too late to take advantage of rates and save money by doing a refinance.

Here are some “refi” tips to help you decide:

• First calculate your closing costs with the help of a knowledgeable mortgage broker. Any reputable lender should be able to give you a rather close approximation, despite the fact that fees and costs may vary slightly from the original estimate.
• Be sure to figure in any incidental savings or costs such as tax deductions for mortgage interest or private mortgage insurance payments. If you can recoup the additional expenses within two years, it is probably a good idea to refinance because you’ll break even quickly and start saving money.
• Look for a rate that is at least one and a half to two percentage points lower than the current one. Those now paying seven percent or more are almost guaranteed savings, while homeowners with mortgage rates closer to 6.25 percent should crunch the numbers carefully, because they may be on the borderline. Read the rest of this entry »

The summer of 2009 is shaping up to be an historical window of opportunity for buying fun and affordable vacation homes. Mortgage money is flowing again, interest rates on safe and secure fixed rate loans are extremely attractive, and the inventory of deeply discounted condos and houses in popular vacation destinations is ripe for the picking.

According to a recent article in the National Association of Realtors (NAR) publication Realtor Magazine, prices have dropped up to 50 percent in some of America’s top vacation home markets. But that does not mean that sales are in the doldrums. Buyers are starting to step in and make offers to purchase before the deals disappear and while mortgage rates still hover near historically low levels. Sales of beach homes in Daytona Beach, for instance, are up about 20 percent compared to this time last year, and that is based on statistics recorded before the peak of the summer selling season. In the month of March, for instance, sales of Daytona Beach condos were twice as brisk as they were in the previous month, and homes in the $200,000 to $400,000 range were moving the fastest.

Foreign nationals have also recognized the value of properties throughout the nation, especially in world-famous hotspots like Miami and South Beach. Buyers from other countries are responsible for about 10 percent of recent real estate purchases. That kind of eager buyer participation is giving the market for vacation homes added traction, and many economists expect that the lowest prices are already slipping away as real estate regains its footing. Read the rest of this entry »

The Federal Housing Administration (FHA) has seen a surge in demand for its loan products as the cost of other non-FHA loans have increased and their availability has diminished dramatically. So an FHA loan may be the best option for anyone buying or refinancing in 2009.

Whereas private banks and mortgage companies were throwing money out the door two or three years ago to help people buy homes, now they have substantially tightened their purse strings. Down payment requirements are bigger, credit and income is severely scrutinized, and home equity lines of credit and second mortgages are being curtailed. Meanwhile, the FHA is assuming greater responsibility for helping Americans find unusually affordable loans at attractive interest rates, and the agency even has special products designed for those who want to buy a home and have enough cash leftover to do repairs, improvements, and upgrades.

Here’s how the FHA works, and why their mortgages may work nicely for anyone wanting to buy or refinance during the uniquely challenging economic climate of 2009:

The FHA does not actually make mortgages, but it insures them in order to give reassurance and financial support to those who do make loans directly to homeowners. In other words the FHA makes it less risky for lenders, which is a powerfully beneficial service at this particularly nervous time in our nation’s financial history. When a lender makes an FHA approved loan, they get guarantees that if the homeowner defaults the FHA will pay the lender in the form of a mortgage insurance claim. Because of this added perk, lenders are then able to extend unique bargains and benefits to borrowers, and that is why FHA loan products may be the best available option for anyone wanting to buy or refinance a home in 2009. Read the rest of this entry »

Baby Boomers - those Americans born after 1945 - now make up about 30 percent of the United States population, and they are rapidly swelling the ranks of new retirees. That is one of the main reasons the unique FHA-insured Home Equity Conversion Mortgage (HECM) is becoming increasingly popular. The new, innovative HECM is the only reverse mortgage insured by the U.S. government, and it is the first reverse mortgage designed to facilitate purchases of homes for those who are ready to downsize their way into their golden years.

The mortgage was introduced at the end of 2008 to meet the needs of those worried about their finances as they approach retirement age, and the launch of the HECM was part of the Housing and Economic Recovery Act stimulus package. An HECM is an ideal choice for those with substantial home equity who want to sell and move, but do not want the burden of a new mortgage and years of future payments.

To understand the attraction of the HECM, it helps to understand how and why conventional reverse mortgages are used. The basic premise of a reverse mortgage is that the mortgage company pays the homeowner - and not the other way around. Read the rest of this entry »

Before potential buyers tour the home, a seller should take specific steps to help make a strong and positive impression. That will greatly improve the chances of getting a prompt purchase offer at a higher price. Here are some tips from experienced real estate professionals that can enhance success for sellers in any market - including a decidedly lopsided buyer’s market like the one we are experiencing in 2009.

Pricing Preliminaries
Avoid the strategy of setting the original listing price too high and then gradually lowering it if the house doesn’t generate any immediate interest. Precious days and weeks will be lost as buyers look elsewhere, and during the especially favorable springtime real estate shopping season it is critical to avoid wasting time.

Plus, routinely dropping the price in small increments often sends a subtle message that the house may have issues like needed repairs or other problems that are being uncovered by buyers or inspectors. In other words, the reputation of the property may suffer - even if it is a mistaken impression based on erroneous conjecture. By then it may be too late to overcome the negative marketplace perception because buyers will have moved on to shop elsewhere.

A more efficient and positive strategy is to set the list price not more than 2-3 percent above the desired sales price. Then negotiate down to that level if necessary, without running the risk of missing prime opportunities to attract serious buyers. Read the rest of this entry »

Just as the busiest season of the year for residential real estate gets underway for springtime, fresh data from a variety of convincing and reliable sources gives the market renewed hope. While home prices have indeed deteriorated, the silver lining underlying all that vanquished equity is that prices are now very attractive to buyers. Most of the inflation that artificially fueled the housing bubble was dangerous, toxic, and not at all sustainable. Now that the excess has been wrung out of prices, the real estate market appears poised for renewed health and vigor. As realistic values return to the market, so do buyers, and that is always good news for home values.

At the same time, banks - which have hamstrung the market for several months by freezing credit at a time when it was needed the most - are feeling more confident. They are beginning to lend again for mortgages and mortgage refinances, and the fees that they charge are going back down to more moderate levels after a period that saw them get prohibitively steep.

Consider, for example, that two longstanding records were recently shattered - one for home affordability and the other for low interest rates. The Federal Home Loan Corporation or “Freddie Mac” reports that mortgage interest rates are currently the lowest since Freddie Mac began keeping records back in 1971. The National Association of Realtors (NAR) starting compiling a different type of statistic during that same year, namely an index that measures the overall affordability of homes. Right now the Home Affordability Index shows that American homes are more affordable than they have been since the NAR starting indexing those figures nearly 40 years ago. Read the rest of this entry »

Congress recently enacted legislation providing a tax credit worth up to $8,000 for first-time homebuyers. A tax credit is a dollar-for-dollar reduction in taxes, so if a buyer gets the $8,000 perk and the amount they owe in taxes to the IRS happens to equal $8,000 they do not have to pay the IRS a penny.

That is especially handy during these hard economic times, and helps to offset the higher cash down payment requirements that banks and other lenders have recently instituted in the wake of their own financial meltdown. The National Association of Realtors (NAR) estimates that the $8,000 credit will, in fact, inspire sales of approximately 300,000 more houses to help boost the real estate market and stimulate the overall economy.

But time is of the essence for buyers who want to take advantage of this unique and valuable opportunity. Unless changes are made to the current law to extend it - and none are being seriously discussed at this time - only those homes purchased on or after January 1, 2009 and before December 1, 2009 are going to be eligible. Read the rest of this entry »

Reducing the amount of materials and energy required to build or maintain a home can help to substantially reduce your carbon footprint. At the same time, a green approach to home ownership ensures greater peace of mind, physical comfort, and preservation of a sustainable investment over the lifetime of the home.

Save money while living a more responsible green lifestyle - whether buying a condo, remodeling a home, planning new construction, or just wanting to take simple environmentally conscious steps forward. Here are some of the many interesting paths to a greener home:

Construction Methods
The use of recycled materials; formaldehyde-free insulation, nontoxic paint, and intelligent energy-aware construction methods are just a few of the ways to create a more Earth-friendly home.

1. Optimum Value Engineering (OVE) techniques are those design and framing strategies for wood or “stick-built” construction that were developed by the Forest Products Laboratory in collaboration with the National Association of Home Builders. Buildings employing OVE practices use less lumber and achieve higher insulation values without compromising structural integrity. Read the rest of this entry »

With almost a year’s worth of excess inventory already listed on the market, home sellers this year face some major challenges - especially as we head into the slowest real estate sales season of the year. But it is still possible to generate strong interest in a home and attract buyers for a timely sale, as long as the homeowner is realistic about pricing and takes a few steps to speed things along.

Here are a few expert tips from experienced real estate professionals for helping sell a home despite being in a confirmed buyer’s market:

Price it Right and Revisit the Price Periodically
To sell in this historic buyer’s market requires aggressive pricing, and that means that homeowners should avoid trying to “fish” for a higher price. The potential delays are too costly, especially heading into the slow season, so it is best to price based on what comparable homes are actually selling for and not how much money the individual homeowner hopes to get. The asking price should not be a “wishing price” in other words, but should accurately reflect current market conditions and sales activity.

When listing a home, Realtors often suggest starting at one price and then reevaluating the price periodically. Do it on a schedule by marking the dates on a calendar, rather than trying to base any price change decisions on emotions or day to day fluctuations in the number of showings. If listing the home at $200,000 on September 15th, for example, mark the calendar for a reevaluation of price on November 1st and again every two weeks until it sells. Read the rest of this entry »

Implement these 4 ideas to help sell a house or upgrade a home without straining the household budget.

Those Saving money is now back in vogue, especially when it applies to real estate, but homeowners still want to spruce up their houses - either to sell them faster or to enjoy them more. Those who know how to do small home improvements on a shoestring budget can reap big rewards and benefits in a variety of ways.

Here are four ideas that can help save money while also boosting curb appeal, home equity, pride in home ownership, and overall enjoyment of hearth and home.

Embark on a do-over without overdoing it.
Upgrades that are affordable can also be impressive, as long as the money is spent wisely to invest in those specific features that deliver the greatest impact. Use imagination and grand vision to conceptualize the entire project, but then whittle down the wish list to just a few selected priorities. Read the rest of this entry »