Don't buy any Videocassette Recorders (VCRs) unless you read this first.
If you are like me, you sometimes find it convenient to record a program or 2 or 3 while you are out for the evening or the day. We do it with a VCR since that is all we have for such purposes. It suddenly occured to me that those days may end come February.
Our High Definition TV picture - and it is a superb media - comes to us from an antenna in our garage attic. Living in Phoenix puts all TV transmitters in one general location on South Mountain and most Home Owner Associations prohibit them on the roof. We do not have cable or Dish or Direct TV. We also don't have TIVO or any other new gimmicks for recording TV programs. Which brings us back to the VCR.
I recently visited Best Buy to see if Digital VCRs existed. They do - if you have deep pockets for $200+. I would prefer to save up for a Blu-Ray DVD Player anticipating that more DVD rentals will be available later in 2009.
I asked if the Digital TV Converter Boxes available for Analog TVs would work with the VCRs - "No, it says right on the box ......".
Now, I'm not an engineer, but if it works with a TV tuner, why not a VCR tuner? So, I ran a test. I now get all the "-1,-2,-3,etc." channels on my VCR. The picture is much clearer when being recorded but still subject to the reduced quality of VCR tapes.
Well, for the less than $10 after the gov't $40 coupon to buy an RCA DTA800B1 at Wal-Mart, I'm reasonably sure from my tests that I can still go off to dinner and not miss NCIS Chapter 137, CSI, Big Bang, etc.
Yes, I love the High Def stuff but, shucks, I can give up a little quality to make sure I don't miss a good episode!
Do your own test for the $10 it will cost you and don't come back to me if it doesn't work! Good Luck!
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Tuesday, January 27, 2009
Existing-Home Sales Show Strong Gain In December
From: RISMedia.com
Existing-Home Sales Show Strong Gain In December
Posted By Paige On January 26, 2009 @ 4:32 pm In Real Estate | Comments Disabled
RISMEDIA, January 27, 2009-Existing-home sales rose unexpectedly while inventory declined, led by a surge of sales in the West, according to the National Association of Realtors®.
Existing-home sales-including single-family, townhomes, condominiums and co-ops-jumped 6.5% to a seasonally adjusted annual rate of 4.74 million units in December from a downwardly revised pace of 4.45 million units in November, but are 3.5% below the 4.91 million-unit pace in December 2007.
For all of 2008 there were 4,912,000 existing-home sales, which was 13.1% below the 5,652,000 transactions recorded in 2007. This is the lowest volume since 1997 when there were 4,371,000 sales.
Lawrence Yun, NAR chief economist, said home prices continue to fall significantly. “It appears some buyers are taking advantage of much lower home prices,” he said. “The higher monthly sales gain and falling inventory are steps in the right direction, but the market is still far from normal balanced conditions. Buyers will continue to have an edge over sellers for the foreseeable future.”
Total housing inventory at the end of December fell 11.7% to 3.68 million existing homes available for sale, which represents a 9.3-month supply at the current sales pace, down from a 11.2-month supply in November.
Yun said the market is underperforming and hurting the broader economy. “We’ve added 25 million people to our population over the past decade and housing affordability conditions are the best we’ve seen since 1973, but household formation is much lower than expected,” he said. “Consequently, there is a pent-up demand which could be unleashed with the right stimulus, including a non-repayable home buyer tax credit. The Obama administration and Congress need to move fast to stimulate a spring sales upturn which will help to stabilize home prices and set the foundation for a sustainable economic recovery.”
The national median existing-home price for all housing types was $175,400 in December, which is 15.3% below December 2007 when the median was $207,000. There remains a significant downward distortion in the current median from a large number of distress sales at discounted prices, currently 45% of transactions; the median is where half of the homes sold for more and half sold for less. For all of 2008, the median price was $198,600, down 9.3% from $219,000 in 2007.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said it’s an excellent time for first-time home buyers with good jobs. “The typical buyer plans to stay in their home for 10 years, which is the correct approach in today’s market,” he said. “With historically low mortgage interest rates, flexible sellers, a large inventory, and homes that are selling for less than replacement construction costs in much of the country, buyers who’ve been on the fence should take a closer look at today’s market.”
McMillan added that first-time buyers may want to consider an FHA loan, which offers downpayments of 3.5% on a safe 30-year fixed-rate mortgage.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.29% in December from 6.09% in November; the rate was 6.10% in December 2007. Last week, Freddie Mac reported the 30-year rate was 5.12%.
Single-family home sales rose 7.0% to a seasonally adjusted annual rate of 4.26 million in December from a level of 3.98 million in November, but are 1.4% below a 4.32 million-unit pace in December 2007. For all of 2008, single-family sales fell 11.9% to 4,349,000.
The median existing single-family home price was $174,700 in December, down 14.8% from a year ago. For all of 2008, the single-family median was $197,100, which is 9.5% below 2007.
Existing condominium and co-op sales increased 2.1% to a seasonally adjusted annual rate of 480,000 units in December from 470,000 in November, but are 18.4% below the 588,000-unit level a year ago. For all of 2008, condo sales dropped 21.0% to 563,000 units.
The median existing condo price4 was $181,400 in December, down 18.3% from December 2007. For all of 2008, the median condo price was $210,000, which is 7.2% below 2007.
Regionally, existing-home sales in the Northeast slipped 1.4% to an annual pace of 720,000 in December, and are 14.3% below December 2007. The median price in the Northeast was $235,000, which is 7.8% lower than a year ago.
Existing-home sales in the Midwest increased 4.0% in December to a level of 1.04 million but are 10.3% below a year ago. The median price in the Midwest was $140,800, down 11.4% from December 2007.
In the South, existing-home sales rose 7.4% to an annual pace of 1.74 million in December, but are 11.2% lower than December 2007. The median price in the South was $158,600, which is down 8.0% from a year ago.
Existing-home sales in the West jumped 13.6% to an annual rate of 1.25 million in December and are 31.6% higher than a year ago. The median price in the West was $213,100, down 31.5% from December 2007.
For more information, visit [1] www.Realtor.org.
RISMedia welcomes your questions and comments. Send your e-mail to: [2] realestatemagazinefeedback@rismedia.com.
Related real estate headlines on RISMedia.com
.
Existing-Home Sales Show Strong Gain In December
Posted By Paige On January 26, 2009 @ 4:32 pm In Real Estate | Comments Disabled
RISMEDIA, January 27, 2009-Existing-home sales rose unexpectedly while inventory declined, led by a surge of sales in the West, according to the National Association of Realtors®.
Existing-home sales-including single-family, townhomes, condominiums and co-ops-jumped 6.5% to a seasonally adjusted annual rate of 4.74 million units in December from a downwardly revised pace of 4.45 million units in November, but are 3.5% below the 4.91 million-unit pace in December 2007.
For all of 2008 there were 4,912,000 existing-home sales, which was 13.1% below the 5,652,000 transactions recorded in 2007. This is the lowest volume since 1997 when there were 4,371,000 sales.
Lawrence Yun, NAR chief economist, said home prices continue to fall significantly. “It appears some buyers are taking advantage of much lower home prices,” he said. “The higher monthly sales gain and falling inventory are steps in the right direction, but the market is still far from normal balanced conditions. Buyers will continue to have an edge over sellers for the foreseeable future.”
Total housing inventory at the end of December fell 11.7% to 3.68 million existing homes available for sale, which represents a 9.3-month supply at the current sales pace, down from a 11.2-month supply in November.
Yun said the market is underperforming and hurting the broader economy. “We’ve added 25 million people to our population over the past decade and housing affordability conditions are the best we’ve seen since 1973, but household formation is much lower than expected,” he said. “Consequently, there is a pent-up demand which could be unleashed with the right stimulus, including a non-repayable home buyer tax credit. The Obama administration and Congress need to move fast to stimulate a spring sales upturn which will help to stabilize home prices and set the foundation for a sustainable economic recovery.”
The national median existing-home price for all housing types was $175,400 in December, which is 15.3% below December 2007 when the median was $207,000. There remains a significant downward distortion in the current median from a large number of distress sales at discounted prices, currently 45% of transactions; the median is where half of the homes sold for more and half sold for less. For all of 2008, the median price was $198,600, down 9.3% from $219,000 in 2007.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said it’s an excellent time for first-time home buyers with good jobs. “The typical buyer plans to stay in their home for 10 years, which is the correct approach in today’s market,” he said. “With historically low mortgage interest rates, flexible sellers, a large inventory, and homes that are selling for less than replacement construction costs in much of the country, buyers who’ve been on the fence should take a closer look at today’s market.”
McMillan added that first-time buyers may want to consider an FHA loan, which offers downpayments of 3.5% on a safe 30-year fixed-rate mortgage.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.29% in December from 6.09% in November; the rate was 6.10% in December 2007. Last week, Freddie Mac reported the 30-year rate was 5.12%.
Single-family home sales rose 7.0% to a seasonally adjusted annual rate of 4.26 million in December from a level of 3.98 million in November, but are 1.4% below a 4.32 million-unit pace in December 2007. For all of 2008, single-family sales fell 11.9% to 4,349,000.
The median existing single-family home price was $174,700 in December, down 14.8% from a year ago. For all of 2008, the single-family median was $197,100, which is 9.5% below 2007.
Existing condominium and co-op sales increased 2.1% to a seasonally adjusted annual rate of 480,000 units in December from 470,000 in November, but are 18.4% below the 588,000-unit level a year ago. For all of 2008, condo sales dropped 21.0% to 563,000 units.
The median existing condo price4 was $181,400 in December, down 18.3% from December 2007. For all of 2008, the median condo price was $210,000, which is 7.2% below 2007.
Regionally, existing-home sales in the Northeast slipped 1.4% to an annual pace of 720,000 in December, and are 14.3% below December 2007. The median price in the Northeast was $235,000, which is 7.8% lower than a year ago.
Existing-home sales in the Midwest increased 4.0% in December to a level of 1.04 million but are 10.3% below a year ago. The median price in the Midwest was $140,800, down 11.4% from December 2007.
In the South, existing-home sales rose 7.4% to an annual pace of 1.74 million in December, but are 11.2% lower than December 2007. The median price in the South was $158,600, which is down 8.0% from a year ago.
Existing-home sales in the West jumped 13.6% to an annual rate of 1.25 million in December and are 31.6% higher than a year ago. The median price in the West was $213,100, down 31.5% from December 2007.
For more information, visit [1] www.Realtor.org.
RISMedia welcomes your questions and comments. Send your e-mail to: [2] realestatemagazinefeedback@rismedia.com.
Related real estate headlines on RISMedia.com
.
Monday, January 26, 2009
Assistance for Distressed Homeowners
The Federal Housing Administration (FHA) can provide some assistance to homeowners behind on their mortgages.
You can reach a US Department of Housing and Urban Development(HUD)counselor, at no cost or charge to you, for advice and guidance. FHA offers several programs to those eligible including, in some cases, a refinance loan.
In addition, for new loans FHA has relaxed some requirements on bad or leas than perfect credit folks. They also accept a lower down payment of 3.5%, less than conventional mortgages.
Ask your current lender about the "FHA Secure" program.
If you or anyone you know are in a distressed situation and could use some advice and guidance, call a HUD Counselor at 1-800-569-4287. Again, no cost to you and the sooner you act, the better the chance for help.
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You can reach a US Department of Housing and Urban Development(HUD)counselor, at no cost or charge to you, for advice and guidance. FHA offers several programs to those eligible including, in some cases, a refinance loan.
In addition, for new loans FHA has relaxed some requirements on bad or leas than perfect credit folks. They also accept a lower down payment of 3.5%, less than conventional mortgages.
Ask your current lender about the "FHA Secure" program.
If you or anyone you know are in a distressed situation and could use some advice and guidance, call a HUD Counselor at 1-800-569-4287. Again, no cost to you and the sooner you act, the better the chance for help.
.
Top Five Myths About Loan Modification
From Realty Times of January 26, 2009
Top Five Myths About Loan Modification by Ralph Roberts
DETROIT--(BUSINESS WIRE)-- Ralph R. Roberts, consumer advocate and spokesperson for Federal Loan Modification Law Center, today released a list dispelling the top five myths about loan modification. Intended to better educate homeowners facing the prospect of losing their home in foreclosure, the following list demystifies the most common misconceptions surrounding the loan modification process.
MYTH #1: My bank wants me out of my house. My bank wants my home. Banks and other lending institutions do not want to foreclose. They earn more money if you can make your payments. When they foreclose, they not only lose your monthly payments, but they also have the expense of foreclosing (attorney fees), rehabbing the home, and then selling it (agent commissions). In today's market, there's a good chance they'll have to sell the home at a loss. This is all good news for you – it means the bank is highly motivated to make a deal with you.
MYTH #2: My credit score is bad so I won't qualify. Unlike the option of refinancing out of trouble, which requires you to apply for a new loan, loan modification simply adjusts the terms and perhaps reduces the balance of a loan you already have. Your credit score is much less of a factor in determining whether you qualify for a loan modification. In addition, a successful loan modification can actually improve your credit score over time, especially if it prevents you from ending up in foreclosure or bankruptcy.
MYTH #3 I am not late on my mortgage payments so I won't qualify. I have to miss a payment to be eligible. Early on, this was true. In fact, some early eligibility requirements stated that you had to be 61 days delinquent in order to qualify. In other words, you would have had to have missed two full payments. The truth is that the eligibility requirements are constantly changing and differ among lenders. Many lenders are now working out loan modifications with borrowers who are up to date on their payments. It's difficult to determine whether you qualify until you actually discuss your situation with the lender or with an attorney who is knowledgeable and experienced in loan modifications.
MYTH #4: I would be better off walking away or declaring bankruptcy than modifying my loan. Walking away from the home and filing for bankruptcy are certainly two options, but they are rarely the best options when you are facing foreclosure. If you simply walk away, the lender is unlikely to pursue legal action against you, but in some jurisdictions, the lender can pursue a deficiency judgment against you to collect the difference between what the lender receives for your home at auction and what you currently owe on the balance of the mortgage. Filing for bankruptcy may be better than just walking away, but it can leave a blemish on your credit history that makes it difficult to borrow money in the future. A successful loan modification is almost always a more prudent choice.
MYTH #5: It's too late. I have already received a foreclosure notice. As long as you still reside in the home – that is, you didn't voluntarily abandon it, and the home hasn't been sold at a foreclosure auction – you may still have time to work out a loan modification with your lender. The sooner you take action, the more options you have available and the more time you have to pursue the best option, but you can still negotiate late into the process. By contacting the lender or, better yet, having your attorney contact the lender on your behalf, you demonstrate a good faith effort to work out a solution and can often buy yourself extra time to negotiate a loan modification.
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Copyright © 2009 Realty Times. All Rights Reserved.
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Top Five Myths About Loan Modification by Ralph Roberts
DETROIT--(BUSINESS WIRE)-- Ralph R. Roberts, consumer advocate and spokesperson for Federal Loan Modification Law Center, today released a list dispelling the top five myths about loan modification. Intended to better educate homeowners facing the prospect of losing their home in foreclosure, the following list demystifies the most common misconceptions surrounding the loan modification process.
MYTH #1: My bank wants me out of my house. My bank wants my home. Banks and other lending institutions do not want to foreclose. They earn more money if you can make your payments. When they foreclose, they not only lose your monthly payments, but they also have the expense of foreclosing (attorney fees), rehabbing the home, and then selling it (agent commissions). In today's market, there's a good chance they'll have to sell the home at a loss. This is all good news for you – it means the bank is highly motivated to make a deal with you.
MYTH #2: My credit score is bad so I won't qualify. Unlike the option of refinancing out of trouble, which requires you to apply for a new loan, loan modification simply adjusts the terms and perhaps reduces the balance of a loan you already have. Your credit score is much less of a factor in determining whether you qualify for a loan modification. In addition, a successful loan modification can actually improve your credit score over time, especially if it prevents you from ending up in foreclosure or bankruptcy.
MYTH #3 I am not late on my mortgage payments so I won't qualify. I have to miss a payment to be eligible. Early on, this was true. In fact, some early eligibility requirements stated that you had to be 61 days delinquent in order to qualify. In other words, you would have had to have missed two full payments. The truth is that the eligibility requirements are constantly changing and differ among lenders. Many lenders are now working out loan modifications with borrowers who are up to date on their payments. It's difficult to determine whether you qualify until you actually discuss your situation with the lender or with an attorney who is knowledgeable and experienced in loan modifications.
MYTH #4: I would be better off walking away or declaring bankruptcy than modifying my loan. Walking away from the home and filing for bankruptcy are certainly two options, but they are rarely the best options when you are facing foreclosure. If you simply walk away, the lender is unlikely to pursue legal action against you, but in some jurisdictions, the lender can pursue a deficiency judgment against you to collect the difference between what the lender receives for your home at auction and what you currently owe on the balance of the mortgage. Filing for bankruptcy may be better than just walking away, but it can leave a blemish on your credit history that makes it difficult to borrow money in the future. A successful loan modification is almost always a more prudent choice.
MYTH #5: It's too late. I have already received a foreclosure notice. As long as you still reside in the home – that is, you didn't voluntarily abandon it, and the home hasn't been sold at a foreclosure auction – you may still have time to work out a loan modification with your lender. The sooner you take action, the more options you have available and the more time you have to pursue the best option, but you can still negotiate late into the process. By contacting the lender or, better yet, having your attorney contact the lender on your behalf, you demonstrate a good faith effort to work out a solution and can often buy yourself extra time to negotiate a loan modification.
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Copyright © 2009 Realty Times. All Rights Reserved.
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Friday, January 23, 2009
Few Borrowers Can Revise Mortgage Loans
We do not wish to only present the good news - you will get the other side of the story here as well!
Not everyone agrees that the bailout is working. One woman's story as it appears in RISMEDIA, January 23, 2009:
A different view of the bailout!
It appears our new president has a major challenge ahead of him in this area!
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Not everyone agrees that the bailout is working. One woman's story as it appears in RISMEDIA, January 23, 2009:
It appears our new president has a major challenge ahead of him in this area!
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Sunday, January 18, 2009
Federal bailout is working, Zions banker says
The first clear feedback on the TARP progream:
This article from the AZ Republic Newspaper of Jan. 18 indicates that "the effort appears to have bolstered the stability of the banks and has helped to get credit flowing again."
Federal bailout is working
It is significant to note that the writer does feel the government will be repaid the funds provided by this program. That doesn't seem to get mentioned very often!
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This article from the AZ Republic Newspaper of Jan. 18 indicates that "the effort appears to have bolstered the stability of the banks and has helped to get credit flowing again."
It is significant to note that the writer does feel the government will be repaid the funds provided by this program. That doesn't seem to get mentioned very often!
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Friday, January 16, 2009
More on Lower Interest Rates
Realty Times of January 16, 2009
Slow Economy and Government Actions Lead to 11 Weeks of Lower 30-Year Fixed Rates
McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.96 percent with an average 0.7 point for the week ending January 15, 2009, down from last week when it averaged 5.01 percent. Last year at this time, the 30-year FRM averaged 5.69 percent. The 30-year FRM has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.
The 15-year FRM this week averaged 4.65 percent with an average 0.7 point, up from last week when it averaged 4.62 percent. A year ago at this time, the 15-year FRM averaged 5.21 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.25 percent this week, with an average 0.6 point, down from last week when it averaged 5.49 percent. A year ago, the 5-year ARM averaged 5.40 percent. The 5-year ARM has not been lower since the week ending September 8, 2005, when it averaged 5.24 percent.
One-year Treasury-indexed ARMs averaged 4.89 percent this week with an average 0.5 point, down from last week when it averaged 4.95 percent. At this time last year, the 1-year ARM averaged 5.26 percent.
"Interest rates for 30-year fixed rate mortgages fell for the 11th straight week to another record low, due in part to the slowing economy and government actions," said Frank Nothaft, Freddie Mac vice president and chief economist. "So far, both the U.S. Treasury Department and the Federal Reserve have added over $100 billion in liquidity to the mortgage market since September 2008, which put downward pressure on interest rates for fixed-rate mortgages. The Federal Reserve may add up to an additional $570 billion more this year, based on its November 25, 2008 announcement, to further shore up mortgage lending and keep rates low.
"In December, the unemployment rate rose to 7.2 percent, the highest since January 1993, and the economy lost 2.6 million jobs over 2008, the largest annual drop since 1945. That brought down yields on Treasury securities and mortgage rates followed."
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Copyright © 2009 Realty Times. All Rights Reserved.
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Slow Economy and Government Actions Lead to 11 Weeks of Lower 30-Year Fixed Rates
McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.96 percent with an average 0.7 point for the week ending January 15, 2009, down from last week when it averaged 5.01 percent. Last year at this time, the 30-year FRM averaged 5.69 percent. The 30-year FRM has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.
The 15-year FRM this week averaged 4.65 percent with an average 0.7 point, up from last week when it averaged 4.62 percent. A year ago at this time, the 15-year FRM averaged 5.21 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.25 percent this week, with an average 0.6 point, down from last week when it averaged 5.49 percent. A year ago, the 5-year ARM averaged 5.40 percent. The 5-year ARM has not been lower since the week ending September 8, 2005, when it averaged 5.24 percent.
One-year Treasury-indexed ARMs averaged 4.89 percent this week with an average 0.5 point, down from last week when it averaged 4.95 percent. At this time last year, the 1-year ARM averaged 5.26 percent.
"Interest rates for 30-year fixed rate mortgages fell for the 11th straight week to another record low, due in part to the slowing economy and government actions," said Frank Nothaft, Freddie Mac vice president and chief economist. "So far, both the U.S. Treasury Department and the Federal Reserve have added over $100 billion in liquidity to the mortgage market since September 2008, which put downward pressure on interest rates for fixed-rate mortgages. The Federal Reserve may add up to an additional $570 billion more this year, based on its November 25, 2008 announcement, to further shore up mortgage lending and keep rates low.
"In December, the unemployment rate rose to 7.2 percent, the highest since January 1993, and the economy lost 2.6 million jobs over 2008, the largest annual drop since 1945. That brought down yields on Treasury securities and mortgage rates followed."
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Copyright © 2009 Realty Times. All Rights Reserved.
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Thursday, January 15, 2009
Low-Interest-Rates
Realty Times for January 15, 2009
Quick! Take That Low-Interest-Rate Holiday by Broderick Perkins
One holiday Blue Light Special appears to be working.
Interest rates are as low as they been since Freddie Mac started tracking them, refinancing applications are soaring and home buys are on the move.
Freddie Mac on Christmas Eve, bless them, said the 30-year fixed-rate mortgage (FRM) averaged 5.14 percent for the week ending Dec. 24, 2008. That's the lowest the rate has been since Freddie Mac started the Primary Mortgage Market Survey in 1971.
The 15-year rate averaged 4.91 percent.
Five year hybrid adjustable rate mortgages (ARMs) were higher at 5.49 percent, but 1-year ARMs were below 5 percent at 4.95 percent nationwide and even lower 4.75 in the Northeast and Southwest.
Talk about visions of sugar plums.
With home prices in a trough, with all the money you've been saving on reduced holiday spending and gasoline conservation, with all those motivated sellers out there twisting in the frigid wind?
It's a good time to consider refinancing your mortgage and it's a good time to be thinking "Buy A Home -- Now!"
Forget settling down for a long winter's nap.
It's obviously time to put on your refinance thinking cap or your buy-a-home lid, not that go-to-sleep winter topper.
Either way, you won't be alone. Jack Frost can't hold a candle to housing consumers who feel the heat.
On Dec. 24, the Mortgage Bankers Association's composite index of mortgage applications to buy a home or refinance a mortgage -- bless it also -- rose to 1,245.4, the highest since 2003, from 841.4 a week earlier. The group's refinancing gauge rose 63 percent and purchases gained 11 percent.
Low rates have you looking to refinance?
The average rates are so low, refinancing can benefit even those who purchased a home a year or two ago, even if they had a small equity stake in their home and used an ARM to buy.
The key, say the experts, is to examine your options.
Visit your existing lender first, especially if your lender doesn't sell loans and has a vested financial interest in keeping its portfolio intact. It will prefer to refinance you at the going rate rather than cut a loan modification and lose money.
Also shop around at other banks, credit unions (especially credit unions) and other lenders that also retain loans.
Trading an ARM for a fixed rate that's slightly higher also isn't a bad deal if that ARM rate will eventually explode with an upward adjustment.
A 40-year mortgage also can help offset the cost of trading an ARM for a fixed rate, due to the longer term's relatively smaller payments.
If you have both equity in your home and pristine credit, bargain hard. You have the most options.
Quickly pull your credit report from the only federally-sanctioned free service, AnnualCreditReport.com and check it twice for accuracy.
Don't overlook trading one ARM for another, especially if the new ARM is a hybrid that provides enough breathing room, say five or seven years or more before the first adjustment.
A U.S. Housing and Urban Development-approved counselor, experienced mortgage broker or mortgage adviser can help you quickly sort through options from lenders, bailout programs and other sources to get you a refinanced mortgage -- fixed or adjustable -- that is most viable.
Examine all potential options by comparing all loan costs of each refinance from a variety of sources -- in-house lenders, secondary market lenders and brokers.
Low rates making you think about buying?
Budget. Know all sources of every penny and where every penny goes. You can't know where you can cut costs until you know in detail what those costs are.
Save. Pinch Pennies. Save More. Being miserly isn't lame. It's a prerequisite to homeownership. If you don't have a savings account worth three to six months of your net income, you are already a financial disaster waiting to happen should there be an emergency. In addition to money for the down payment, lenders today will expect you to have some cash left over for insurance, taxes, maintenance and other costs that come with homeownership.
Don't just get your credit report, read the darn thing. Your credit report is a report card on your credit use -- the good, the bad, the ugly -- and, too often, the incorrect. Which is why you want to see it. If there are errors, follow the instructions to correct them.
Get professional help. Can't determine what your credit report is trying to tell you? Not sure how to calculate what you'll need to save for a down payment? Don't know how to set up a budget? Most consumers don't. It's okay to ask for help. It's smart to ask for help. You don't know everything about buying a home, even if you are moving up, but especially if you are a first-timer. Save the pride for after the purchase.
Whether it's a financial planner, financial counselor, real estate agent, mortgage broker, loan officer, or real estate market nerd, ask family, friends, co-workers and others you trust for references to find those who can help you. Get help in setting goals, sifting through mortgage programs, understanding the title and escrow process, finding a home and keeping a home -- all well before you are actually in the market for a home.
Learn about market and economic conditions that could impact your decision. Learn about home prices, mortgage rates, home buying costs and other issues surrounding what's likely to be your most complicated purchase ever.
Attend workshops, seminars and classes.
Browse for housing information from online content providers, including MyMoney.gov, the Better Business Bureau (search "Tips for Troubled Homeowners") and Deadline Newsroom's home buyers search results.
Pick up a few books, or save some bucks in the library reading "Buying Your First Home" (Nolo, $24.99); "The National Association of Realtors Guide To Home Buying" (Wiley, $19.95) and "Let's Get Real About Money" (Financial Times, $19.99), among others.
Above all -- refinancing or buying -- move fast. The mortgage market is as volatile as it's ever been. Rates could quickly reverse course and head back into Scrooge territory.
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Copyright © 2009 Realty Times. All Rights Reserved.
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Quick! Take That Low-Interest-Rate Holiday by Broderick Perkins
One holiday Blue Light Special appears to be working.
Interest rates are as low as they been since Freddie Mac started tracking them, refinancing applications are soaring and home buys are on the move.
Freddie Mac on Christmas Eve, bless them, said the 30-year fixed-rate mortgage (FRM) averaged 5.14 percent for the week ending Dec. 24, 2008. That's the lowest the rate has been since Freddie Mac started the Primary Mortgage Market Survey in 1971.
The 15-year rate averaged 4.91 percent.
Five year hybrid adjustable rate mortgages (ARMs) were higher at 5.49 percent, but 1-year ARMs were below 5 percent at 4.95 percent nationwide and even lower 4.75 in the Northeast and Southwest.
Talk about visions of sugar plums.
With home prices in a trough, with all the money you've been saving on reduced holiday spending and gasoline conservation, with all those motivated sellers out there twisting in the frigid wind?
It's a good time to consider refinancing your mortgage and it's a good time to be thinking "Buy A Home -- Now!"
Forget settling down for a long winter's nap.
It's obviously time to put on your refinance thinking cap or your buy-a-home lid, not that go-to-sleep winter topper.
Either way, you won't be alone. Jack Frost can't hold a candle to housing consumers who feel the heat.
On Dec. 24, the Mortgage Bankers Association's composite index of mortgage applications to buy a home or refinance a mortgage -- bless it also -- rose to 1,245.4, the highest since 2003, from 841.4 a week earlier. The group's refinancing gauge rose 63 percent and purchases gained 11 percent.
Low rates have you looking to refinance?
The average rates are so low, refinancing can benefit even those who purchased a home a year or two ago, even if they had a small equity stake in their home and used an ARM to buy.
The key, say the experts, is to examine your options.
Visit your existing lender first, especially if your lender doesn't sell loans and has a vested financial interest in keeping its portfolio intact. It will prefer to refinance you at the going rate rather than cut a loan modification and lose money.
Also shop around at other banks, credit unions (especially credit unions) and other lenders that also retain loans.
Trading an ARM for a fixed rate that's slightly higher also isn't a bad deal if that ARM rate will eventually explode with an upward adjustment.
A 40-year mortgage also can help offset the cost of trading an ARM for a fixed rate, due to the longer term's relatively smaller payments.
If you have both equity in your home and pristine credit, bargain hard. You have the most options.
Quickly pull your credit report from the only federally-sanctioned free service, AnnualCreditReport.com and check it twice for accuracy.
Don't overlook trading one ARM for another, especially if the new ARM is a hybrid that provides enough breathing room, say five or seven years or more before the first adjustment.
A U.S. Housing and Urban Development-approved counselor, experienced mortgage broker or mortgage adviser can help you quickly sort through options from lenders, bailout programs and other sources to get you a refinanced mortgage -- fixed or adjustable -- that is most viable.
Examine all potential options by comparing all loan costs of each refinance from a variety of sources -- in-house lenders, secondary market lenders and brokers.
Low rates making you think about buying?
Budget. Know all sources of every penny and where every penny goes. You can't know where you can cut costs until you know in detail what those costs are.
Save. Pinch Pennies. Save More. Being miserly isn't lame. It's a prerequisite to homeownership. If you don't have a savings account worth three to six months of your net income, you are already a financial disaster waiting to happen should there be an emergency. In addition to money for the down payment, lenders today will expect you to have some cash left over for insurance, taxes, maintenance and other costs that come with homeownership.
Don't just get your credit report, read the darn thing. Your credit report is a report card on your credit use -- the good, the bad, the ugly -- and, too often, the incorrect. Which is why you want to see it. If there are errors, follow the instructions to correct them.
Get professional help. Can't determine what your credit report is trying to tell you? Not sure how to calculate what you'll need to save for a down payment? Don't know how to set up a budget? Most consumers don't. It's okay to ask for help. It's smart to ask for help. You don't know everything about buying a home, even if you are moving up, but especially if you are a first-timer. Save the pride for after the purchase.
Whether it's a financial planner, financial counselor, real estate agent, mortgage broker, loan officer, or real estate market nerd, ask family, friends, co-workers and others you trust for references to find those who can help you. Get help in setting goals, sifting through mortgage programs, understanding the title and escrow process, finding a home and keeping a home -- all well before you are actually in the market for a home.
Learn about market and economic conditions that could impact your decision. Learn about home prices, mortgage rates, home buying costs and other issues surrounding what's likely to be your most complicated purchase ever.
Attend workshops, seminars and classes.
Browse for housing information from online content providers, including MyMoney.gov, the Better Business Bureau (search "Tips for Troubled Homeowners") and Deadline Newsroom's home buyers search results.
Pick up a few books, or save some bucks in the library reading "Buying Your First Home" (Nolo, $24.99); "The National Association of Realtors Guide To Home Buying" (Wiley, $19.95) and "Let's Get Real About Money" (Financial Times, $19.99), among others.
Above all -- refinancing or buying -- move fast. The mortgage market is as volatile as it's ever been. Rates could quickly reverse course and head back into Scrooge territory.
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Copyright © 2009 Realty Times. All Rights Reserved.
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Tuesday, January 13, 2009
Real Estate Outlook: Follow the Money
From Realty Times of January 13, 2009
Real Estate Outlook: Follow the Money by Kenneth R. Harney
Is the economic glass half empty or half full?
Talk to different groups of forecasters and you get different answers, but basically a similar consensus: The national recession is likely to drag on for another four to six months, but by mid-year we should be moving into a slow-growth rebound mode, digging out of recession.
A new poll of 50 top business economists conducted by Blue Chip Economic Indicators, a research organization, found a mildly upbeat general outlook -- especially if the economic stimulus package being prepared by the incoming Obama administration and the new Congress cuts taxes, stimulates housing sales, lowers mortgage rates, and reverses job losses as the year moves on.
Randell Moore, the head of Blue Chip Indicators, which conducts monthly economic surveys, said "the consensus (is that) we are in the deepest part of the recession (right) now. But the stimulus package and lower gasoline prices are expected to … restore consumer confidence and personal spending -- and that will put us on the road back."
The Federal Reserve released its own forecast, based on discussions at its December board meeting: Expect negative growth through the late Spring, a slow recovery thereafter.
What about housing and real estate?
The latest pending home sales survey by the National Association of Realtors, covering the month of November, was down. But think back to the prevailing mindset back in October and November - some of the biggest jitters and panic on Wall Street in recent history, plus worries about the financial safety of the banking system.
Who would expect people to rush out and sign home purchase contracts with the entire economy in earthquake mode and consumer confidence plummeting?
Today, by contrast, the outlook is VERY different. We're on the verge of getting an economic shot in the arm from a giant stimulus package -- some of which will likely directly target home sales, possibly with tax credits.
Mortgage interest rates are at almost unprecedented lows -- five percent and even below if you've got a downpayment and decent credit. Applications for new mortgages to buy houses were up by more than 7 percent last week, according to the Mortgage Bankers Association's national survey -- up 2.3 percent for those seeking conventional loans and up an amazing 19.2 percent for buyers planning to use FHA financing.
As the saying goes: Follow the money. There's something important stirring out there. Home prices are at 2004 levels in many markets. Buyers who can qualify are seeing real, tangible opportunities….and that dynamic, along with help from the stimulus package, should begin turning around housing even before the economy as a whole.
--------------------------------------------------------------------------------
Copyright © 2009 Realty Times. All Rights Reserved.
.
Real Estate Outlook: Follow the Money by Kenneth R. Harney
Is the economic glass half empty or half full?
Talk to different groups of forecasters and you get different answers, but basically a similar consensus: The national recession is likely to drag on for another four to six months, but by mid-year we should be moving into a slow-growth rebound mode, digging out of recession.
A new poll of 50 top business economists conducted by Blue Chip Economic Indicators, a research organization, found a mildly upbeat general outlook -- especially if the economic stimulus package being prepared by the incoming Obama administration and the new Congress cuts taxes, stimulates housing sales, lowers mortgage rates, and reverses job losses as the year moves on.
Randell Moore, the head of Blue Chip Indicators, which conducts monthly economic surveys, said "the consensus (is that) we are in the deepest part of the recession (right) now. But the stimulus package and lower gasoline prices are expected to … restore consumer confidence and personal spending -- and that will put us on the road back."
The Federal Reserve released its own forecast, based on discussions at its December board meeting: Expect negative growth through the late Spring, a slow recovery thereafter.
What about housing and real estate?
The latest pending home sales survey by the National Association of Realtors, covering the month of November, was down. But think back to the prevailing mindset back in October and November - some of the biggest jitters and panic on Wall Street in recent history, plus worries about the financial safety of the banking system.
Who would expect people to rush out and sign home purchase contracts with the entire economy in earthquake mode and consumer confidence plummeting?
Today, by contrast, the outlook is VERY different. We're on the verge of getting an economic shot in the arm from a giant stimulus package -- some of which will likely directly target home sales, possibly with tax credits.
Mortgage interest rates are at almost unprecedented lows -- five percent and even below if you've got a downpayment and decent credit. Applications for new mortgages to buy houses were up by more than 7 percent last week, according to the Mortgage Bankers Association's national survey -- up 2.3 percent for those seeking conventional loans and up an amazing 19.2 percent for buyers planning to use FHA financing.
As the saying goes: Follow the money. There's something important stirring out there. Home prices are at 2004 levels in many markets. Buyers who can qualify are seeing real, tangible opportunities….and that dynamic, along with help from the stimulus package, should begin turning around housing even before the economy as a whole.
--------------------------------------------------------------------------------
Copyright © 2009 Realty Times. All Rights Reserved.
.
Friday, January 9, 2009
Another New Low in Mortgage Rates
Realty Times - January 9, 2009
Long-Term Rates for Tenth Consecutive Week Setting Yet Another New Low
McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.01 percent with an average 0.6 point for the week ending January 8, 2009, down from last week when it averaged 5.10 percent. Last year at this time, the 30-year FRM averaged 5.87 percent. The 30-year FRM has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.
The 15-year FRM this week averaged 4.62 percent with an average 0.7 point, down from last week when it averaged 4.83 percent. A year ago at this time, the 15-year FRM averaged 5.43 percent. The 15-year FRM has not been lower since June 13, 2003, when it averaged 4.60 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.49 percent this week, with an average 0.7 point, down from last week when it averaged 5.57 percent. A year ago, the 5-year ARM averaged 5.63 percent.
One-year Treasury-indexed ARMs averaged 4.95 percent this week with an average 0.5 point, up from last week when it averaged 4.85 percent. At this time last year, the 1-year ARM averaged 5.37 percent.
"Interest rates for 30-year fixed-rate mortgages fell for the tenth week to a fourth consecutive record low due in part to the Federal Reserve’s recent purchases of mortgage-backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae," said Frank Nothaft, Freddie Mac vice president and chief economist. "On November 25, 2008, the Federal Reserve announced that it planned to purchase up to $500 billion of these securities by the end of June of this year. For the sake of comparison, there were roughly $4.7 trillion of such securities backed by home mortgages available as of September 30, 2008."
"Since the end of October 2008, these rates have declined by almost 1 1/2 percentage points, or payment savings of about $184 a month for a $200,000 loan – an additional $11 dollars from last week."
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Copyright © 2009 Realty Times. All Rights Reserved.
.
Long-Term Rates for Tenth Consecutive Week Setting Yet Another New Low
McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.01 percent with an average 0.6 point for the week ending January 8, 2009, down from last week when it averaged 5.10 percent. Last year at this time, the 30-year FRM averaged 5.87 percent. The 30-year FRM has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.
The 15-year FRM this week averaged 4.62 percent with an average 0.7 point, down from last week when it averaged 4.83 percent. A year ago at this time, the 15-year FRM averaged 5.43 percent. The 15-year FRM has not been lower since June 13, 2003, when it averaged 4.60 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.49 percent this week, with an average 0.7 point, down from last week when it averaged 5.57 percent. A year ago, the 5-year ARM averaged 5.63 percent.
One-year Treasury-indexed ARMs averaged 4.95 percent this week with an average 0.5 point, up from last week when it averaged 4.85 percent. At this time last year, the 1-year ARM averaged 5.37 percent.
"Interest rates for 30-year fixed-rate mortgages fell for the tenth week to a fourth consecutive record low due in part to the Federal Reserve’s recent purchases of mortgage-backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae," said Frank Nothaft, Freddie Mac vice president and chief economist. "On November 25, 2008, the Federal Reserve announced that it planned to purchase up to $500 billion of these securities by the end of June of this year. For the sake of comparison, there were roughly $4.7 trillion of such securities backed by home mortgages available as of September 30, 2008."
"Since the end of October 2008, these rates have declined by almost 1 1/2 percentage points, or payment savings of about $184 a month for a $200,000 loan – an additional $11 dollars from last week."
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Copyright © 2009 Realty Times. All Rights Reserved.
.
Tuesday, January 6, 2009
POSITIVE THOUGHTS
Ken Harney has provided many good articles through the Realty Times. Here is his view on the 2009 Outlook.
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Real Estate Outlook: What's in Store for 2009?
January 6, 2009 by Kenneth R. Harney
What will the new year bring for housing and real estate? It's easy to look at all the negative economic news in the headlines and say - there's no sign that 2009 is going to be any better than 2008.
But here's a different perspective to consider from one of the country's veteran financial analysts -- Richard Bove of Ladenburg Thalmann, the investment banking company.
In a research report issued late in December, Bove said he sees a positive dynamic taking shape in the current cycle. The government has intervened aggressively in the markets to push interest rates down -- most notably in the home mortgage sector.
Though it takes awhile for low-cost money to begin having its effect, Bove said he expects “housing prices to stabilize and/or rise (in 2009) after a likely boom in mortgage refinancings as rates fall and loan applications increase.”
Add in the expected massive economic stimulus package being put together on Capitol Hill with the incoming Obama administration -- and there's a good chance we're going to see a gradual transformation of the downward cycle into a slow rebound over the coming several quarters.
Already there are positive signs of the turnaround Bove predicts:
Mortgage applications are off the charts, mainly for refis but also to buy houses at affordable prices.
Rates continue to hover at 50-year lows - five percent and even four and three quarters percent for 30-year mortgages, and still lower for 15 and 20 year mortgage terms.
Plus we're all paying a lot less at the gas pump, and sharply discounted prices for retail goods and autos.
And guess what? Americans are actually SAVING again, the national savings rate took a nearly three percent jump last month. That might sound small, but it's hugely important if it is the start of a trend.
There are also some signs that housing prices are stabilizing in some parts of the country. The latest monthly Federal Housing Finance Agency index found home prices UP by six-tenths of a percent in the Mountain states and UP by two tenths of a percent in New England.
You can ridicule small regional gains as statistically irrelevant, but here's Realty Times's economic proposal to you for the New Year: Keep your eyes open for the small positive signs that are accumulating out there … because all downcycles tail off and come to an end.
We think the smartest players in real estate -- consumers and the industry - will make the most of the positives -- low-cost money, low prices, stabilizing local markets -- and thrive in the new year.
--------------------------------------------------------------------------------
Copyright © 2009 Realty Times. All Rights Reserved.
We hope that 2009 will indeed be the turnaround - a little optimism helps!
.
----------------------------------------------
Real Estate Outlook: What's in Store for 2009?
January 6, 2009 by Kenneth R. Harney
What will the new year bring for housing and real estate? It's easy to look at all the negative economic news in the headlines and say - there's no sign that 2009 is going to be any better than 2008.
But here's a different perspective to consider from one of the country's veteran financial analysts -- Richard Bove of Ladenburg Thalmann, the investment banking company.
In a research report issued late in December, Bove said he sees a positive dynamic taking shape in the current cycle. The government has intervened aggressively in the markets to push interest rates down -- most notably in the home mortgage sector.
Though it takes awhile for low-cost money to begin having its effect, Bove said he expects “housing prices to stabilize and/or rise (in 2009) after a likely boom in mortgage refinancings as rates fall and loan applications increase.”
Add in the expected massive economic stimulus package being put together on Capitol Hill with the incoming Obama administration -- and there's a good chance we're going to see a gradual transformation of the downward cycle into a slow rebound over the coming several quarters.
Already there are positive signs of the turnaround Bove predicts:
Mortgage applications are off the charts, mainly for refis but also to buy houses at affordable prices.
Rates continue to hover at 50-year lows - five percent and even four and three quarters percent for 30-year mortgages, and still lower for 15 and 20 year mortgage terms.
Plus we're all paying a lot less at the gas pump, and sharply discounted prices for retail goods and autos.
And guess what? Americans are actually SAVING again, the national savings rate took a nearly three percent jump last month. That might sound small, but it's hugely important if it is the start of a trend.
There are also some signs that housing prices are stabilizing in some parts of the country. The latest monthly Federal Housing Finance Agency index found home prices UP by six-tenths of a percent in the Mountain states and UP by two tenths of a percent in New England.
You can ridicule small regional gains as statistically irrelevant, but here's Realty Times's economic proposal to you for the New Year: Keep your eyes open for the small positive signs that are accumulating out there … because all downcycles tail off and come to an end.
We think the smartest players in real estate -- consumers and the industry - will make the most of the positives -- low-cost money, low prices, stabilizing local markets -- and thrive in the new year.
--------------------------------------------------------------------------------
Copyright © 2009 Realty Times. All Rights Reserved.
We hope that 2009 will indeed be the turnaround - a little optimism helps!
.
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