Real Estate News
Loan applications are approaching record levels and refinance activity is near historic peaks. Appraisers are working in overdrive, along with pretty much everyone else in the financing industry including attorneys, title insurance agents and surveyors. Oh, and loan officers, too.
The official federal numbers aren"t out yet -- and won"t be released until after Thanksgiving. But some home mortgage lenders are jumping the gun and actively offering low-cost "conforming" loans in amounts far in excess of the mortgage size limits set annually by the nation"s giant housing finance investors, Fannie Mae and Freddie Mac.
Last week Department of Housing and Urban Development Secretary Mel Martinez announced new disclosure rules designed to prevent unexpected loan fees at settlement. Among the details of the new policy, HUD sought to clarify its position on "yield spread premiums" or "YSPs". YSPs are fees paid by a lender to a mortgage broker in return for the delivery of a loan that carries a higher interest rate.
Okay folks, last week I answered a question in general from a reader who was inquiring about the tax advantages of homeownership. Being a mortgage expert and not a tax pro, I explained that real estate taxes and mortgage interest paid in a tax year could be deducted from a homeowner"s income before income tax is calculated -- and stopped there.
Buy a detached home today and you"re likely to need, want, or be required to get an appraisal, home inspection, termite report, and survey. But do you need so many checks?
WASHINGTON, D.C. -- Days after the Federal Trade Commission announced plans to step up enforcement of privacy laws, an online privacy rights advocate has filed a complaint with the commission alleging that five mortgage companies are violating new federal privacy laws.
I can usually see it right away. A loan applicant comes in with a good application. Good income. Great employment history, a strong ability to save. But there"s some bad stuff on the credit report. Late pays, maybe a charge off or two. And a little code on the credit report indicates it"s a spouse with the credit problems, not the applicant. The unmarried applicant. What"s up with that?
Mortgage rates have crept down to near their low points for the year in recent weeks, leaving potential home buyers and refinancers to ponder those age-old real estate questions: Will rates go any lower, and just how low will they go?
Legislation that would create a rogues gallery of crooked financial service professionals -- including those who operate in the mortgage business -- has been cleared by the Financial Services Committee of the House of Representatives.
The Federal Housing Administration is making it easier for home owners to refinance their government-insured mortgages.
I hear this often when discussing loan programs with clients, "David, there"s no prepayment penalty on this loan is there?" Usually, no, but there may be times when a prepayment penalty makes sense.
WASHINGTON, D.C. -- School loans are proving to be an increasingly tough subject. The number of college students graduating with school loan debts of more than $20,000 has nearly doubled in recent years and most debt-ridden students have no idea what they are getting into -- or how to get out.
With the holidays just around the corner, you better get busy shopping. Here"s a short wish-list of this years must-have gadgets and gizmos for the home. These modern gifts are sure to get your motor running while also enhancing the functionality and livability of your household.
Can your mortgage broker get you the best interest rate on the planet? Or will you use a mortgage banker to provide your residential financing? Maybe your credit union could offer the best rates. Doesn"t anyone get their mortgage from their own bank, anymore?
When it comes to choosing a mortgage, your gambling instincts (or lack thereof) may surface. Will you throw caution to the wind with a one-year adjustable-rate mortgage (ARM) or play it safe with a set monthly payment over thirty years? Will you go for more points and less interest, or lower interest but higher costs up-front? No matter what tack you take, there"s risk and reward, pro and con, factored into each mortgage choice..
Interest Rate Activity During The Past Week
Probably few subjects in real estate raise more questions or generate more confusion than the matter of private mortgage insurance, or PMI.
Good credit is a huge deal, the one sure way to get bigger loans and lower rates. And even if you"ve had a late payment every so often, you may have better credit than you think.
From now until 2036, Canada’s population growth is going to slow down, and as Canadians age, fewer new households will be formed. The country’s housing industry is counting on immigrants to pick up the slack.
One of the best ways to have more cash, retire early, and enjoy debt-free living is to prepay your mortgage, an option which even lenders increasingly applaud.
It just may be your lucky day. You’re a bit short on cash to purchase your first home. But you find a seller who owes more on his mortgage than the property is worth (due to refinancing into a 125% loan two years ago). He says you can “have the house” by assuming the loan. And if you’ll front his closing costs for him, he’ll pay you back in the future.
It"s credit called by many names ranging from sub-prime, it"s technical name to damaged, it"s operative name. But in essence it means that even though a buyer has less-than-perfect credit, he can still obtain a less-than “A” grade loan---about the only type of risk-level mortgage available until a decade ago.
Shopping for a mortgage loan on the Internet has become a common practice for
As interest rates bounce up and down, some savvy borrowers are enjoying the down side.
If you"ve been sitting on the fence for the past year hoping home prices would flatten, the run up in mortgage rates has just bitten you where you"ve been sitting.
You can do most anything using technology. Shop for a car, a house, even take classes online. But how about refinancing your current home loan using the world wide web? You may have considered it but are concerned about someone appropriating your personal information and/or losing control of the process.
The latest report from Zillow indicates that one-third of Americans who sold their home in the past year lost money.
Californians have a right to know their credit scores and the California Association of Realtors wants to see to it that they do.
SAN JOSE, CA -- There"s a hard and time-worn lesson to be learned from a recent court settlement with an Irvine, CA-based mortgage company charged with failing to disclose excessive fees.
ARMs are back.
Not willing to rest on it"s laurels after a study unexpectedly discovered many adults misunderstand how bad credit leads to mortgage denials, Fannie Mae will launch an educational campaign to give potential borrowers the scoop on credit.
Peter G. Miller
Banking theory holds that it"s dangerous to lend anyone
First-time homebuyers are often brought up short by the
When a 1998 Intellitech survey showed that only 14% of 1,000 refinancing
On-line mortgage centers have become one of the most successful phenomena"s on the Internet. For all practical purposes on-line loans are less than two years old, yet by the end of 1997, more than $482 million in loans were generated. Forrester Research predicts that the industry will reach $40.5 billion in 2001, and another research group, Tower Group, is even more aggressive in its estimates - $100 billion by the year 2001.
Peter G. Miller
Two-thirds of baby boomers who make more than $100,000 intend to downsize in suburbia, according to a report from building industry watcher Hanley Wood. Boomers are the Americans born between 1946 and 1964 and number 78 million strong -- 28 percent of the population.
Low interest rates and improved first-time home buyer market made it attractive for me to consider selling my home and acquiring my first move-up home. Knowing that my city is in a "tight" or sellers" market, I knew I would need to become prequalified for a loan to position myself as a serious buyer.
"Home equity lending is already big business, and it"s growing as real estate prices rise dramatically in the Bay Area," says Norma Garcia, staff attorney with Consumers Union. "While some loans can help consumers, others only lead to dangerous debt and foreclosure for the "cash-poor, equity-rich." We want to help home owners understand the difference between a good loan and a dangerous one, and give them the information to protect themselves and their homes."
The economy may be flat, but it"s boom time for investors who know how to buy houses at fire-sale prices, fix them up and sell or rent them out.
If you"re looking for new kitchen flooring, get ready to choose from more
The clothes dryer is an appliance we easily take for granted. But cycle
A contract that allows you to retain the purchase value of your home in a depreciating market could be financial protection well worth considering in markets where bubbles deflate.
With outdoor and backyard living on the rise, some homeowners are opting for
Don"t confuse deferred maintenance with the need to call the repairman.
It seems that every winter while we"re trying to stay warm and cozy, so are
The Internal Revenue Service recently gave work-at-home owners a break on the home-office deduction when they sell their home, but owners can"t enjoy the home-office deduction without meeting a round of qualifications.
Research indicates that energy efficiency and the integration of renewable energy technologies have become important factors in increasing home value. A recent survey conducted by the California Energy Commission indicates that more than 60 percent of California homeowners would be more interested in a home equipped with a solar or wind energy system versus one without, and 50 percent would be willing to pay more for that home.
With the election over you can begin to hear the rumble in Washington.
[Note: To follow is an excerpt of an interview with Lori Snider of Creativity for Rent, a professional speaker, author and marketing strategist. To listen to, or download the show archive MP3, go to www.IncomePropertyInvestmentTalk.com/102208.]
You spend money and time on taking care of your home, so it"s important to
It would be easy to write a 2010 real estate forecast by repeating the industry line that “the new year will mark a turnaround for real estate values; those who act fast will be able to get the best buys.” Real world facts, at least in San Diego, seem to indicate otherwise.
Once they’ve asked for and received a referral, most salespeople stop and wait for the magic to happen. In fact, this is when Phase 2 of the referral-generation process kicks in. Follow these steps:
A lot of new agents worry about being taken advantage of by experienced agents, if the experienced agent were to find out that they"re new.
I was chatting with a friend of mine last week when he admitted that he had been without health insurance since he got out of college. Given that he"s a real estate agent, that"s not so surprising: as an independent contractor he"s on his own regarding health insurance and many in our industry have simply taken their chances, especially when they are young and healthy like my friend Jack.
Agents are always leaving the business no matter if the market is great or rotten. In great markets, they leave because they move or retire. In rotten markets, they leave because they were never trained or they do not have the motivation to find the systems necessary for a tough market.
Converting FSBO listings involves a process that, in a number of ways, is similar to working with expired listings. However, there are two key differences between the two areas.
Want a real easy way to get more exposure for your business without spending a whole lot of cash? Try publishing an online newsletter to prospects and existing clients.
We are all pre-programmed with hope. That"s a good thing. We all need the hope that we can accomplish our goals and objectives; that our circumstances in life will improve; that we will achieve the position of wealth and happiness we dream about for our family and ourselves. When that hope is not connected to action, we are entrenched in the lotto mindset.
Many real estate professionals ask me what they can do to help stem the tide of foreclosures and stabilize the housing market in their area. One way you can help is by offering a free CMA (Comparative Market Analysis) to homeowners who are struggling to make their house payments. (A CMA is sometimes referred to as BPO – Broker’s Price Opinion.)
The number one obstacle between real estate agents and higher production is interruptions. A close second is procrastination.
Sometimes things are forgotten. Items slip our mind. That is essentially what makes us human. And even as a real estate coach -- it can happen to me. So how do we handle it when we do? Or better yet, how should we handle it when it happens to us. Here"s a true story of his..
There"s a problem with the REO inventory in the United States today. The problem is that the banks make horrendous sellers. I can"t tell you how many REO properties I have personally tried to buy, and transactions that I"ve tried to facilitate on behalf of buyers, and every one seems to be a struggle. For those of you late to the game, REO is short for "real estate owned", which is the title given to post foreclosure homes that are now owned by the bank. Here"s some free advice for the banks -- remember that while you"re a big messy corporate institution, your buyer is an actual live human being.
Question: Some HOA websites and newsletters include a service directory which are recommendations of members. The board has been advised by our lawyer to refrain from posting such lists. I feel the service of these lists overpowers the possibility of legal risk.
Question: "How can I convince a buyer that now is a good time to buy?"
There"s an old Girl Scout campfire song that begins with, "Make new friends but keep the old; one is silver and the other gold."
One of the most useful research projects of the National Association of Realtors® (NAR) is the annual survey of homebuyers and sellers. The 2008 version (Profile of Home Buyers and Sellers 2008) became available in November of this year. The information is based on answers to an eight-page questionnaire mailed to 133,000 consumers who purchased a home between July 2007 and June 2008. (Names and addresses were provided by Experian, a company that maintains an extensive database of recent homebuyers that is derived from county records.) There was a 7.9 percent response rate.
There is one large barrier real estate Agents need to master to create dominance in their marketplace. That one barrier is focus.
It seems like a new real estate portal is announced almost daily. On top of that, everybody wants into the listings display game. Even a place that sells toasters -- Overstock.com -- wants your listings. Ok, bring it on.
Question: Several years ago my wife and I decided to buy a rental property. Since real estate is my profession, we thought it would make sense to have some real estate as part of our long term investment program. We got a good buy on a little single family home (with great owner financing) in a nice area of town.
In the last few years, there"s been a revolution, from holding listings close to your chest, to a free for all. Now the question is, who gets the traffic? Zillow, Trulia and others like them used to be anathema. When early adopters of listings distribution sent them listings, some would howl in protest.
There is a consistent debate among home sellers and realtors alike as to which scenario Vacant or Furnished will bring you higher priced offers? This question is often overlooked by sellers due to the inconvenience of putting off the physical move till after a home sells. After all, individuals want to get their lives back to “normal” as quickly and “conveniently” as possible, especially if children are involved.
Murphy"s Law states that anything that can go wrong will go wrong. Glitches in any real estate transaction are inevitable. If you are prepared, you won"t be so shocked when they do.
You"ve done it. You"ve found a buyer to purchase your home. In fact, he"s even signed the purchase agreement. All should be grand. Then it hits---a major case of seller"s remorse. What should you do now? Call the buyer to back out of the sale?
In Part I of this article, we found that viewing your home as a prospective buyer is vital for deciding what to spruce up before putting your home on the market.
If you are being transferred, enlarging your family, or preparing to make an offer on another home, you are a motivated seller - ready to make the best deal to sell your home quickly. You and your real estate agent can take numerous and appropriate actions to help you meet your goals.
"Tis the season: The market"s hot and sellers rule, but if you want to
When you are interviewing REALTORS® to market your home, you"ll be
In most areas, it"s considered normal for sellers to take
Trying to buy a home in a sellers" market is a little like not having a date
Occasionally, a letter arrives from a reader of my syndicated column, asking for full instructions on how to sell a house without using a broker -- return envelope enclosed for my reply.
The decades-long gulf between the US dollar and the Canadian "loonie" now has become a level playing field and Canadians are all set to play. With the dollar at par, Canadians can plainly see how much more they pay than Americans for everything from carpeting, couches and cars to real estate without knowing exactly why.
Which real estate dreams have you abandoned without a fight because money is an issue? Aim to change more than your address when you buy and you may achieve home or cottage ownership seemingly beyond your current means.
The "R" word is back -- and this time economists ranging from former Fed chairman Alan Greenspan to the National Association of Realtors" Lawrence Yun agree that we"re likely to be dealing with a declining economy for months to come.
Whether you"re shopping for a new house, searching out the ideal condominium, deciding on a contractor or investigating your mortgage choices, do you know how to ask questions that will generate answers you may not realize you need? Answers you may not anticipate could prove the most valuable information you"ll receive.
"With four months passed, 2007 sales to-date are up five per cent over last year," Ms. Mason observed. "We are on track for another near-record year."
The early arrival of Daylight Savings Time (DST) serves as an excellent reminder of two basic elements of home equity management: annual scheduled maintenance and response to change.
The country"s top housing official has an urgent message for potential home buyers: You may have heard that the credit markets were "frozen," but FHA has been open for business throughout the credit squeeze, and so are Fannie Mae and Freddie Mac. In fact, FHA"s volume has tripled and the agency is now insuring well over a hundred thousand new loans a month.
Flexibility is the key to successful planning -- in life and in business. When your business is your life, as is the case for many wineries, adopting proactive strategies to overcome barriers to continued growth is essential. Understanding when to commit to a plan and when to move on is vital to translating these strategies into success.
According to the federal government, approximately 38,000 low-income Canadians stand to gain improved living conditions through its two-year, C$256 million extension of the Canada Mortgage and Housing Corporation (CMHC) renovation programs.
As winter rolls on, Canadians may share visions of swimming pools, but for different reasons.
As Canada"s baby boomers get older, they will cause a dramatic shift in housing demand, and real estate companies and home improvement retailers are gearing up to cater to this powerful 50-plus demographic.
After going to the trouble of sorting out how you are going to bequeath real estate, wealth and sentimental items you"ve accumulated over a lifetime, what precautions have you taken to be sure the will can be found upon your death -- an event that may be decades and many moves in the future?
While eastern Canada"s real estate market may be cooling off, the booming Western Provinces are more than making up for it. The Canadian Real Estate Association (CREA) reports that house prices were up 12.9 per cent in April compared to last year. The average home sold in Canada through the MLS system cost $280,740 in April.
Even if your financial reputation is flawless, credit reporting bureaus, used by lenders, builders, real estate brokerages and other companies to check your credit worthiness, may have the wrong information in your file. Although, Canadian law allows you to correct mistakes and misinformation, the process is slow and the lost time may cost you the mortgage you needed, the condominium unit you wanted or the house you dreamed of.
Isn"t it time for a big fat tax credit for home-based businesses?
Canadians carrying significant debt load should consider improving their financial situation while the economy remains strong. If a review of personal finances reveals that an economic downturn would result in a personal meltdown, it may be prudent to adopt a proactive approach. Predictions of burst real estate bubbles, rising interest rates, escalating energy prices and increased competition off-shore might herald economic slowdowns, so this could be a red-hot opportunity to take advantage of the current good times.
New Year’s celebrations excite an interest in the future that often
Canadians" heightened interest in environmentally-friendly energy efficiency has put previously-expensive heating alternatives in the spotlight. As fuel prices skyrocket, heat pumps are starting to make good financial sense.
Whether renovating or building a home, stretching the budget to buy high-quality materials will not guarantee the best results. Without skilled professional installation, even top of the line flooring, ceramic tiles and other materials may not look their best or function as designed.
Sky-rocketing cottage prices are hot news across Canada. Survey after survey predicts this sellers" market will continue through 2005 and beyond. Yet, in the midst of double-digit increases in the value of vacation real estate, all is not well outside Canada"s urban areas.
Canadian developers continue to creatively recycle obsolete non-residential real estate into an ever-expanding array of unit styles and lifestyle choices that has added the most high-profile conversion -- lofts -- to the list of standard Canadian housing options. Conversions are a response to changing demographics, renewed commitment to preserve architectural diversity, and the necessity to reduce construction costs for the benefit of both developers and buyers.
Retirement has changed.
Canadians who want their gift-buying loonies and twonies to do more than feed corporate coffers should search out previously-overlooked shopping opportunities in their own neighbourhood. For gifts that are a bit different, strikingly unusual or that are one-of-a-kind wonders, local home-based artisan businesses and studios are the answer.
This is Consumer Awareness Week in Ontario, where the government is using the slogan "Smart Consumers are Good for Business." When it comes to buying and selling real estate, the government says the smartest way to conduct the transaction is by hiring a licensed real estate professional.
Over 1.3 million Canadians have dipped into their RRSPs to purchase homes through the federal Home Buyers" Plan (HBP) since its creation in 1992. Usually, sidetracking savings targeted for retirement is discouraged, but the more than C$13 billion in RRSP funds involved bought dream homes and fueled the real estate industry without jeopardizing individual retirement plans -- thanks to the federal government.
More than half of Canadian adults with an Internet connection have used it to research houses for sale, and surfing for real estate is as popular as online banking and looking at job postings.
A $1 billion project to expand Quebec"s Mont Tremblant Resort will make the area one of the most popular four-season tourism destinations in North America, "second perhaps only to what"s happening in Orlando", says the developer"s chief executive. Intrawest"s Joe Houssian says the project, which includes $95 million in government funding, will take place over 10 years.
Too many Canadians associate "new" with "problem free" and are disappointed when their new house or condominium is far from perfect. As housing demand continues to give builders and tradespeople the upper hand, new home buyers should use every resource available to ensure they get what they want.
As the Canadian federal election winds down to voting day, only a few issues relating to housing have commanded much attention. Early in the campaign, New Democratic Party leader Jack Layton made headlines by stating Liberal Prime Minister Paul Martin is responsible for the deaths of homeless people because of his government"s lack of action on housing issues. But his remarks sparked more discussion about Layton"s campaign style than the issue of housing.
A new advisory from Health Canada warns homeowners to stay away from vermiculite insulation that may contain asbestos.
Essay contests that offer real estate as a prize have once again been ruled illegal in Canada, after the latest contest was shut down by Alberta Justice. It"s at least the third time that such contests have been deemed in contravention of the Criminal Code of Canada.
The success of the First Great Canadian Stone Fence Caper serves as a challenge to other Canadians to celebrate the contributions of early settlers in every corner of Canada.
It"s a myth that households are piling up too much debt and heading for disaster, says a new study by Canada"s largest bank.
While Canada battles record-low temperatures, icy roads and burst water pipes, many Canadians are determined to celebrate winter and make the best of the cold. At the forefront of these celebrations is the Winter Cities Association (WCA), a non-profit organization that shares ideas, research and solutions to our northern challenges.
For many years, Canada"s real estate professionals have been warned that emerging technology will dramatically change the way they do business. This is the year that could happen as regulatory and legal decisions, prompted by emerging technology, could hit Realtors where it hurts -- in the pocketbook.
The 15-year FRM this week averaged 5.63 percent with an average 0.6 point, down from last week when it averaged 5.78 percent. A year ago at this time, the 15-year FRM averaged 6.06 percent.
Quebec is the acknowledged Francophone centre of Canada, but French-speaking communities are not confined to that province. If you want to use French for real estate transactions and daily property management issues, your choices may be limited, but a closer look at a map of Canada reveals that each province and territory has Francophone communities, however small:
When Bill Harrington, legal counsel for the Canadian Real Estate Association, recently asked a roomful of several hundred Realtors how many of them had looked at the Association"s CD-ROM that explains Canada"s new privacy act, only a couple of hands went up. REM Magazine columnist Marty Douglas joked that the CD-ROMs, sent to every member by the association about a year ago, make great drink coasters.
Today"s volatile housing market demands that home buyers take an exacting, almost surgical approach to completing a mortgage application in order to speed the paperwork through the narrowed arteries of the home loan pipeline.
Many Canadians have joined the United Nations" celebration of the International Year of Freshwater to raise awareness of the many ways we are dependent on this vital resource. However, one aspect of freshwater usage is often overlooked. As Canadian healthcare systems fail us, freshwater hot springs may become even more important to our daily well-being. You might even consider moving near a hot spring if you suffer a chronic condition.
We"re all looking for a magic bullet, myself included. While I know I"ll have a mortgage payment due in October of 2009, I"m far more concerned with the one due in 25 days, the one due in 55 days and the one due in 85 days.
Since the landmark June 10 Ontario Appeal Court ruling and the Canadian federal government"s decision not to appeal that judgement, the city of Toronto has been busy issuing same-sex marriage licenses to gay and lesbian couples who may not have fully evaluated the real estate implications of entering into this legal union.
Once snow and ice melt into a bad memory, too many Canadians relax their