Rates Stop Climbing, With 30-Year Loans Falling to 5.38%

Here’s an interesting article from the Washington Post News Services Saturday, June 20, 2009

Rates for 30-year home loans fell back this week after soaring to the highest level in seven months the previous week.

The average rate for a 30-year fixed mortgage was 5.38 percent this week, down from 5.59 percent a week earlier, Freddie Mac said. Rates had risen for three consecutive weeks after yields on long-term government debt, which are closely tied to mortgages rates, climbed as investors worried that the huge surplus of government debt hitting the market could trigger inflation.

But data released Wednesday suggested that inflation remains largely in check, and the yield on the 10-year Treasury note fell from an eight-month high of 4.01 percent last week to 3.81 percent on Thursday.

Though there are signs that the troubled U.S. housing market is beginning to stabilize, higher rates could threaten or slow any recovery because consumers would be able to borrow less money and might decide to hold off on their purchases. The three-week run-up in rates ‘is starting to slow homebuyer demand, at least temporarily,’ Frank E. Nothaft, Freddie Mac’s chief economist, said in a statement. There are still signs that the housing market isn’t improving. U.S. home prices may fall another 14 percent before reaching a bottom as an increase in unemployment offsets lower prices, Deutsche Bank said in a report this week. ‘Getting the right level of rates is going to be a difficult process,’ said Scott Brown, chief economist at Raymond James & Associates in St. Petersburg, Fla. ‘We’re going to see some choppiness in the bond market.’

Mortgage applications for home purchases fell 3.5 percent for the week ending June 12, according to the Mortgage Bankers Association, while refinancing applications were down 23 percent from a week earlier. ‘You’re seeing the refi applications down substantially,’ Brown said. ‘You’re going to price a lot of people out of the market.’ The average rate on a 15-year, fixed-rate mortgage fell to 4.89 percent from 5.06 percent last week, according to Freddie Mac. Rates on five-year, adjustable-rate mortgages averaged 4.97 percent, down from 5.17 percent. Rates on one-year, adjustable-rate mortgages fell to 4.95 percent from 5.04 percent. Borrowers can reduce their interest rates by buying points, which each cost one percent of the loan amount. The nationwide average was 0.7 point last week for 30-year and 15-year mortgages and 0.6 point for five-year and one-year adjustable-rate loans.

New Listing You Need to See

3124 Laurel Street

Just Listed!  NOT a Short Sale or REO! A regular sale!

Inventory in North Park is at an all time low – there are very few homes currently available with good square footage and a great location.  Check out this new listing that is not complicated by a Short Sale or Foreclosure process.

Many original details remain in this Spanish style home including coved ceilings, built-ins, arched doorways, hardwood floors (under carpet), & wood burning fireplace! Great floor plan with large rooms. Large kitchen opens onto family room for modern living. Master Bath w/ sunken spa tub & stained glass windows. Make your cosmetic updates and create a wonderful family home. Rare opportunity for a home of this size, in Burlingame, at such a great price.

Tax Credit Can Be Used on Closing Costs

FHA-approved lenders were recently given the green light to develop bridge-loan products that would allow first-time buyers (anyone who has not owned a home in the last three years) to use the benefits of the federal tax credit ‘upfront.’

Under these HUD developments and guidance, FHA-approved lenders can develop bridge loans that buyers can use in different ways. Most notably, you could use it to help cover closing costs, possibly buy down your interest rate, or even offer more than the minimum 3.5 percent down, which would allow you to make a stronger offer-a key strategy in some markets where first time buyers are competing with investors in specific price ranges.

Note: HUD officials indicate that the loans can’t be used to cover the required minimum 3.5 percent down, only to supplement the down payment. In addition to this new development, there remain many state, local and non profit lender resources and programs for buyers needing help with the 3.5 percent down payment.

These new developments, combined with the (up to) $8,000 tax credit and the historically low prices and still low mortgage rates, make this an opportune time to buy. Call me for a free consultation to discuss your specific opportunities and situation. The tax credit is only good through 2009, so now is the time to take advantage and not get caught in the crunch toward the end of the year when procrastinating buyers will scramble to buy before the tax credit expires.

New Logo

So, what do you think of the new logo?  I think it turned out fun.

New Historic Home Listing

New Listing in San Diego's Burlingame Historic District

I just listed this beautiful Spanish style home in the Burlingame Historic District of San Diego.  This area was considered the first planned community in the city.  Located close to Downtown, Balboa Park, the Zoo and much more.

There are 3 bedrooms/2 bathrooms and the home is currently being offered for $829,000.  Because of the historic district, the home’s annual property tax rate of $1508 transfers to the new owner!  This is a huge annual tax savings, making the home as affordable as something priced at over $100,000 less.

All original details are present and largely unchanged.  The moment you enter the home you will discover a foyer area with original tile floor, built in bench, coat rack and mirror.  The living room features a stunning Batchelder rebuilt fireplace, wood beamed ceilings, hardwood floors as well as a built-in secretary, bench and bookcases.  The details continue into the dining room with a built-in china cabinet and French doors to a side patio.  The kitchen is mostly original with an intact “California Cooler”.  Adjoining the kitchen is a large sunny breakfast room, a newly remodeled office area with built-in cabinets and desk area, and HUGE laundry room which has a walk-in pantry and 1/2 bathroom.  All the bedrooms are well sized.  The front bedroom has a separate exit to the side yard and the back bedroom features a large bonus room that is ideal for a den or nursery.  The home even has a 8×7 basement area that is ideal for a wine cellar.  Out back is a garage, large patio area and a great side garden.  This is a great opportunity for someone looking for a nice sized home, original details in a wonderful community

What is DocuSign and why should you care?

If you are an investor or have recently bought/sold a personal residence you are well aware of all the paperwork that gets shuffled around during a transaction.  I’m sure you have also experienced the frustration of trying to meet your real estate agent for signatures or trying to send faxes back and forth.

Well, our team is now one of the few in San Diego using DocuSign.  This is the amazing service that allows you to securely sign all your real estate documents electronically.  You simply open an email, view the document or documents and then then service shows you where to click and insert a legal, electronic version of your signature.  No need to print it out, then scan it back in to get it back to the agent.

What does this mean to you?

• We can easily submit all offers for you and it will not take up yours or our time.  It’s quick and easy!
• It keep all your paperwork organized and accessible.
• It saves everyone a ton of time.  No need to meet or fax documents anymore!
• Is a spouse on a business trip and you are here – no problem, it all handled via email.
• No more wasting paper – it’s a green solution.
• Have you ever wanted to just throw out an offer on a property to see if you can get it for a good price but didn’t want to waste your agents time – well no problem now.  Let’s throw it out there!

Not many agents in this market are using technology to benefit you, the buyer.  We are because we know what a difference this makes for everyone.

Who wants to save $18,000 on their taxes?

Eligible home in Pacific Beach

This is a brand new home located in the Pacific Beach area of San Diego.  It is just a few blocks to the beach, has great views and has all the bells and whistles.

The deal is, it is eligible for up to $18,000 in tax credits.  How?  Well, the State of California is offering up to $10,000 in tax credits for anyone purchasing a new construction property in the state.  The credits are then spread out over a 3 year period.  The only catch is that there only enough funds in the program to last through the summer so right now it is first come, first served!  This was set up to help stimulate the real estate market and move some of the new properties that were sitting on the market.  If you are considering buying a new home then don’t wait too long as the funds will not last long.

Also, if you are a first time buyer, you are also eligible for a $8,000 tax credit through the federal government.  So between the two programs, you could qualify for up to $18,000 in credits!

What is a tax credit?

Well, it is a credit that is applied directly to the taxes you owe so it is like putting money right into your pocket.  This can go a long way to helping you get into the new home that you have had your eyes on.

Please call me at 619-981-3243 if you want to get more info on this unique program.

New Program for Investors, 10% Down Available

This Just in!  Investors can now get back in the game with the new Fannie Mae Homepath Program – Loans available with just 10% down and NO mortgage insurance!  Also, closing costs are much lower that other investor programs out there.

Not all homes qualify so call for a current list.  Here are the details…

Fannie Mae, the agency sponsored by the U.S. government to help make housing more affordable to all Americans, now offers HomePath, a special new home loan to finance the sale of its current real-estate owned (REO) properties across the country.

Lower down payments and relaxed requirements mean more homeshoppers can become homebuyers. HomePath helps you sell more homes!

Here are the key benefits of a HomePath Mortgage Loan:

• Only 3% down required on a primary residence property
• No mortgage insurance required
• No property appraisal required
• Only 10% down on 1-2 unit investment properties
• Get up to 6% in seller concessions on primary residence properties

In addition only select lenders are approved to offer the HomePath loan, we’re experts with REO transactions.

This is a great opportunity to take advantage of the market and lock in a new home or investment property

Buying Real Estate in a Down Ecomomy

Barbara Corcoran

Do you know who Barbara Corcoran is?  Well, back in the 90s she took a $1000 loan and turned it into a 5 Billion Dollar Real Estate Business.  She is now the Real Estate Guru for the Today Show.  Last week she was on and gave her rules for buying in a down economy.  Her main point was that now is a great time to buy and invest.  The biggest fortunes are made in times like this, not during the good times.

Rule 1
Find a good beginner property and stick to what you know.  Invest in your own backyard – not halfway across the country.

Rule 2
Start small – all the big guys started this way.  Get you feet wet on something reasonable.

Rule 3
Buy the block, not the house – tenants rent in a pretty environment.

Rule 4
Examine the rent receipts not just the leases.  Make sure they are actually paying!

Rule 5
Always remember that it costs $$$ when a tenant moves in and out – budget for this.

Rule 6
Partner with an opposite of yourself – someone with different talents than you.  Don’t buy an investment with a friend but with someone who compliments what you bring to the table.

Rule 7
Don’t call your prospective tenants current landlord – call the one before the current one.  This is where you will get the true story.

Rule 8
Don’t rent to a tenant who can move in tomorrow.  A quick move-in means a quick move-out.

She concluded with the advice not to miss this golden opportunity to start your real estate fortune.   I was at a conference last week where David Bach was a panelist (he is a noted author of several financial advice books).  He made the point that the investment property you buy in the next year could fund your retirement.  Don’t buy just to buy but invest in what makes sense.

Note:  We have access to properties now that allow an investor to buy with only 10% down, no mortgage insurance.  Call for more details.

Incredible Investor Buy in San Diego

Windham Ct. Spring Valley, San Diego

The list price on this excellent 3 bed 2.5 bath investment property just dropped $10,000 to only $144,900…CASH FLOW!  The complex has an awesome pool/spa & children’s play area with gated parking.  Located in a quiet neighborhood with complete kitchen appliances, in unit laundry & a private backyard perfect for BBQing.  Definitely a must see!  This truly is an amazing deal for 3 bedrooms!  Secure your future with Investment property and let your tenants pay the mortgage!