Spring is coming.....

A day like today, and sounds like tomorrow, is a great time to think about Spring Time.  Temperatures today may reach 10 degrees and the low this evening is -3.  I have been thinking about Spring for another reason too.....

I have gotten several calls of people that would like to sell their home.  I have actually turned people away to list their home, because it isn't the best time to sell at the moment.  But....it is the best time in years to buy a home.  I locked in a 15 year fixed rate mortgage for 4.5%, no points or origination fee.  4.5%, unbelievable.  

Back to Spring time....  I predict that the Spring time is going to be busy in the Real Estate area.  Rates will still be low, there will be more buyers searching for a new home, which means it will be a better time to sell a home.  I have this feeling that 2009 is going to be a much better year than 2008, when it comes to Real Estate.  I am already seeing activity pick up, with 2 houses under contract and 1 more may be added this evening.  I am getting phone calls for showing requests and lots of inquiries.  It is still January, can't wait for the Spring!!

Gotta run to get to a showing, until next time, make every day.... a great day!!!

Something positive in this economic turmoil

We have all been told to try to to find positive things when things seem so bad.  While our country is in this big economical mess, there are a couple of positive things currently going on.

The first, unrelated to the real estate market, is gas prices.  Since everyone is cutting back, the demand for oil continues to drop.  The high was around $150/barrel a few months ago and has dropped dramatically to around $46/barrel, as of the writing of this blog.  This is great for everyone, except the billion dollar oil companies.  Gas prices at the pump are around $1.65/gallon, and has been as low as $1.53/gallon, in the southern Ohio area.  Some predict that the low price of oil may be around for a while.  Let's all hope so.

The second positive outcome of this mess, is that mortgage rates are falling.  30 year fixed rates are around 5.375% and 15 year fixed rates are around 5.25%.  Rates have been low for quite some time, but with the housing market suffering, rates are falling even lower.  This, as I have mentioned in other blogs, provides an excellent opportunity to buy a home.  You can get an excellent mortgage rate and excellent price on a home.  If you are financially sound, have some money for a down payment and your amount of consumer debt is low, why not take advantage of this unique opportunity.  

"We are in extraordinary times" has been quoted by President Bush and President-Elect Obama over the past several weeks.  Why not look at the positives during this negative time in our country's history.  So, get in that car, fill up with some 'cheap' gas, drive around your desired neighborhood, find that home you would like to purchase, then contact me to schedule a showing and let me guide you through the home-buying process.       

Time to Buy? Time to Sell?

Tough questions to answer, is this a good time to buy or is this a good time to sell?  

To be honest, this is probably not the best time to sell your home, unless of course you are a distressed seller, needing to get rid of that ridiculous mortgage.  Homes are still being sold, however most of them at a deep discount.  People are very hesitant to buy at this uncertain time in our economy.  If you don't have to sell, I suggest waiting until spring time and see how things are going at that time.  Let's hope for the best, as the new president takes over.  

On the other side, investors are loving this market, able to purchase homes at a great bargain.  If you have cash, or great credit, this is the best time ever to buy a home.  Interest rates are still around 6% or better.  You can buy a home today and have instant equity, if you buy smart.  

But I do have to offer this piece of advice:  If you have a lot of debt or you don't have 10% to put down on a home, maybe this isn't the best time for you to consider buying a home.  The first problem you encounter as being a home-owner may be enough to turn home ownership into a curse, instead of a blessing.  Be smart!  We don't need any more foreclosures.     

I want the clients I work for to be happy in their new home for many years to come.  Putting people in homes they can not afford are setting them up for failure.  

Make it a great day!

Mortgage Rates Ticking Upward

It has been a while since my last blog, no excuses really, just have had other things to do. But I thought it may be important to let people know that mortgage rates are starting to tick upwards.

I update the rates daily on my website www.goneselling.com and have noticed a small gradual increase. Rates as of this morning for a 30 year fixed rate is 6.625% and 6.125% for a 15 year fixed rate. By the way, I only recommend fixed rate mortgages. If the reason you are getting an adjustable rate mortgage is to keep your payment low, you are purchasing too big of a home/property. Don't fall into the trap, like so many others. With adjustable rate mortgages, I have heard stories of mortgage payments doubling from one month to the next, just because the rate adjusted several points. Sorry for going off the topic a little, it just bothers me to see people making silly mistakes that could cost them their home, their marriage and even their life, over such a decision as this.

Now, where was I. Oh yeah, mortgage rates. Interest rates are going to go up sooner or later, one would think. We are still at historically low rates, and have been for quite some time. Long term rates, like mortgage rates, typically increase when the short term rate decreases. There are many things that influence this increase. Things like inflation, the economy, supply and demand, etc. But I think the primary reason for this increase in rates is competition. The investors who provide this money for lending purposes are wanting a bigger incentive for their risk. Who could blame them, with foreclosure at an all-time high, this is a risky business.

I am definitely no expert on interest rates. But I do know one thing, today is still a good time to buy property with fixed rate mortgages. If you are fortunate enough to buy some property with good rates and terms, why put it off? There are plenty of properties to choose from, as the home market is flooded with listings. Be careful in choosing your property/investment, make wise financial decisions and enjoy the benefits!

Fed Cuts Key Interest Rates, Again!

The Federal Reserve chose to cut interest rates by 75 basis points today, or 3/4%. This is the 6th straight cut since September. So, what does this mean for you?

The 3/4 % interest rate cut affects short-term rates, like credit card rates, auto loans and home equity lines of credit. The purpose of this reduction is to entice the consumer to spend more money in our struggling economy. Doing so should boost our economy and provide some confidence to both the consumer and investors. If you currently have short term credit, you should begin to see a reduction in your payment.

How does this impact my mortgage, you may ask? This short term rate reduction does not impact long-term rates directly, however, most of the time it means that mortgage rates will begin to gradually increase from here. Mortgage rates are still very attractive and could save you a lot of money, just by getting a better rate. If you have an ARM (Adjustable Rate Mortgage) or a high rate, you should seriously consider refinancing your mortgage, before they tick up further.

Take advantage of the current mortgage rates while they are still historically low. Whether it be purchasing that new home or simply refinancing, I can help or direct you to someone who can. Check out my website at www.goneselling.com, where I update the mortgage rates daily.

Enjoy Today!

What are FHA loans? What are HUD homes?

Today I want to discuss two common acronyms used in the real estate industry. These terms have been used frequently in today's market. Let's take a quick look at each of them.

FHA stands for Federal Housing Administration. This is a government agency that insures mortgage loans, it does not actually loan the money, it merely provides mortgage insurance for the lender. If the borrower defaults on the loan, this agency will help cover the lender's loss. Recently, the FHA loan limits for our area was increased: Single family property limit is now $337,500 and 2-family property limit is now $432,050. FHA loans are most commonly used for first-time home buyers because of the low down payment (usually 3% to 5%) required. It also allows for some imperfections on your credit history and provides competitive interest rates.

HUD stands for the United States Department of Housing & Urban Development. This government agency was established to help the consumer purchase homes, by providing regulated standards and the enforcement of fair housing laws. HUD homes are those homes that have been turned over to the government for non-payment of the mortgage, in which they (FHA) insured. HUD homes are basically homes that were financed through FHA type loans that were foreclosed for one reason or another.

Hopefully, this has helped to clear up some confusion on FHA and HUD. There are a lot of HUD homes available for purchase in Southern Ohio, specifically the counties of Adams, Brown, Clermont, Clinton and Highland. Once HUD becomes the official owner of the property, it is placed into a Real Estate company's hands to sell. You can find them by doing a property search on http://www.goneselling.com/ or your favorite MLS search site. If you would like for me to assist you with your property search, don' t hesitate to contact me.

Enjoy Today!

Having trouble making mortgage payments, find some Hope Now

Did your mortgage payment just increase due to your Adjustable Rate Mortgage adjusting UP? Are you already in default on your mortgage and need some help out of trouble? Maybe there is some Hope Now on the way.

President Bush announced in December of last year an initiative entitled Hope Now, which is a voluntary action or alliance with mortgage lenders to help borrowers in their time of need during this 'mortgage crisis' we are currently experiencing. This could help those people that have an adjustable rate mortgage, in which their payment has increased so much they are unable to make payments on time. You may be eligible for a rate freeze for a set period of time, which may allow you time to work out a better solution with your lender. Or you may be eligible to refinance your loan at a fixed rate.

If you feel like you could benefit from this service, please contact a Hope Now counselor by calling them at 888-995-HOPE (4673). There is someone available 24/7. When you call this number you will be speaking with a HUD (US Housing & Urban Development) approved counselor to discuss the details of your situation. You may want to allow an hour or so the first time you call and you may even have to talk with them on more than one occasion. But the results could be the difference between keeping your home or being foreclosed on.

Another bit of information concerning the mortgage crisis: President Bush signed into law a mortgage debt forgiveness law, that will not require you to pay federal taxes on debt forgiveness which was part of a loan workout agreement with your lender. This is in effect for the next 3 years. Typically, when a home owner sold their home as a short-sale (sold home for less than what they owed the bank), the home owner had to pay federal taxes on the amount that was forgiven (or the amount of loss the lender took because it sold short of the amount owed) . With this new law, that debt forgiveness will not be taxed.

Although this may be a difficult time for you at the moment, I would highly suggest you attempt to work out a plan with your lender directly or through a Hope Now counselor. I have spoken to, and heard about, borrowers being able to work out sensible plans of repayment with their lender, why not try today. You may be glad you did.