The Fed holds off on rate increase... for now

You’ve likely read a lot in the media lately about the Federal Reserve (Fed) and its review of its historically low interest-rate policy. At its most recent meeting, the Fed chose not to increase rates as the global market experiences ongoing volatility and slower economic growth. Of course, the Fed is closely monitoring the rate of inflation and job growth as the U.S. economy continues to slowly improve.

 

 

These things are  almost always an influence on mortgage rates.   If you would like to see what the cost of a new mortgage for purchase or refinance is, just reply to this email.

 

 

 

Why get pre-qualified?

If you read the news, the inventory of homes is a little low.  That means sellers can be picky when they receive a contract offer.  If you present an offer with our letter and another buyer makes an offer without being qualified (all other things equal or maybe not so equal), guess who gets the home?

Yes it is a little trouble, but we don't charge you to take care of this and you can avoid embarrassing surprises.  To do this go to www.mignashville.com/app and fill out our online application. It is easy and secure and will get you on the road to that home!

In Case you wondered about square footage!

QUESTION: I have a seller that is disputing the manner in which I measured the square footage of their property. What is the correct/legal way to do this?

ANSWER: We do not recommend that agents calculate square footage. Square footage (or gross living area) is difficult to determine and is ripe for a misrepresentation claim.

There are several acceptable ways in which to determine square footage. Additionally, if you have 3 different people determine square footage, you are likely to get three different answers. If the square footage included in the MLS is incorrect, the REALTOR could be liable for negligent misrepresentation depending upon what he or she did to verify the information obtained and when the discrepancy is discovered (i.e. before contract entered into, after closing).

We recommend that square footage be listed as an "approximate" amount and that a disclaimer be included noting that the amount of square footage is not guaranteed. We would also recommend either listing the square footage as what is listed on the tax records or as calculated by an appraiser and indicate the source. The important thing is that the information concerning square footage is disclosed so as to avoid misrepresentation. We would recommend going with either the tax records or from an appraiser's measurements.

[SOURCE: TAR's Legal & Ethics Hot Line Attorneys]

Be a Self-Starter

 by David H. Sandler

• A race car has a tremendous amount of potential energy but cannot start until someone waves the green flag.

• The powerful engines of a jet cannot lift that plane one-inch off the ground without ample runway and someone activating its controls.

• A locomotive can be held in place by a single block of wood placed under its wheel, yet under power it can go through a brick wall 10 feet thick.

Raw power has only potential. Machines cannot turn themselves on - people can! If you're going to wait to feel "right" about doing something, it may never happen. The self-starter knows that there is never a "right" time to get started.


Too many people sit around waiting to be motivated - as if there were some chemical reaction about to take place. The self-starter acts on his goals, and the motivation to achieve those goals is built into that action.

If you are not feeling "up to it," no amount of concentration, wishful thinking, or smoke screen planning will get you into action. Things in motion tend to stay in motion; things at rest remain at rest. The more you think about becoming motivated, the better the chances are that you won't.

The self-starter knows that regardless of how he feels at any given moment, how he will feel in the next moment is determined by the action he takes.

If you have set worthwhile goals, and have developed a plan of action, set your plan into action anytime of the day or night by acting on it. Don't lose precious time by waiting for the time to be right: Become a self-starter.

It's how you act that determines how you feel, not how you feel that determines how you act.

* * *

Excerpted from Sandler's No Guts, No Gain!® training program. © 2002 Sandler Systems, Inc. All rights reserved.

No Credit Scores? We can still do it!

Do you know someone that has absolutely no credit?  Someone who followed a famous radio host to the no score credit report?  Then they try to buy a home and find it to be a big problem.  In many cases we can help those folks.  We will verify rent, utilities etc. and then get it done.  So if you or someone you know has this situation, please let me know.  Give me a call at (615) 777-3299.  Ask for George!

U.S. Governments April Fool's Joke

By the time you read this, the U.S. Governments April Fool's joke will have taken effect.  That is the increase of the FHA MIP.  But never fear, they have the next thing all set to take effect in early June.  At that time a loan case number pulled after June 3 will carry with it the privilege of paying the MIP for the life of the loan.  Presently if you reach the  point of 78% of the appraised value or purchase price (whichever is less) the MIP Will drop off.  (with a minimum of 5 years).  So if you are in the market for a home , and need to use an FHA loan, it would behoove you to go ahead and get it done.  Call or email me for details on how to avoid FHA.

Zillow: Home Values To Grow 22 Percent Through 2017

by Broderick Perkins

Home values will grow incrementally by more than 4 percent a year and cumulatively by 22 percent over the next five years.

That's if growth rates exceed home value growth rates in the 12 years preceding the onset of the housing bubble that culminated in the Great Recession.

It sounds like happy days are here again in the residential real estate market, according to the Zillow Home Price Expectations Survey (ZHPES).

Zillow's panel of more than 100 professional forecasters foresee the 4.1 percent next-five-year annual home value appreciation rate exceeding the pre-housing bubble's (1987-1999) average annual appreciation rate of 3.6 percent.

The finding is the first time the predicted average annual growth rate for the next five years has surpassed pre-bubble levels since the survey's inception by Zillow three years ago.

But don't party like it's 1999 just yet.

"That said, their expectations are a bit shy of the home value gains of 5.5 percent that we saw in 2012, implying some moderation in the pace of gains. The panel expectations are consistent with continued strong home value growth this year fueled by tighter-than-normal inventory of for-sale homes and robust demand attributable to high affordability and a stronger general economy," said Zillow Chief Economist Dr. Stan Humphries.

Bring more homes to market from sellers and banks' "shadow inventory," raise mortgage interest rates, push home values too high, trip up the economy and all bets are off.

Anything can happen

It's true. A cascade of study after study points to real recovery, but anemic economic growth, creeping employment and salary gains and still tight mortgage lending could put a crimp in any forecast.

Year-by-year, Zillow says expect to see home values rise 4.6 percent this year, 4.2 percent in 2014 and then level off between 3.6 percent and 3.8 percent from 2015 to 2017.

For the five-year period, expectations for home value increases ranged from a whopping 34.2 percent, among the most optimistic quartile, to only 11.7 percent among the most pessimistic, Zillow reports.

Even at the average annual home value rate growth forecast by the most pessimistic of Zillow's forecasters, about 2.4 percent, the growth rate would not be far below the pre-bubble average of 3.6 percent.

Among single forecasters, the smallest cumulative (through the end of 2017) home value forecast was for an 11 percent depreciation.

The greatest cumulative forecast for the five-year period was for a home price appreciation rate of nearly 78 percent.