Who is left to refinance?


Plenty of folks, per the number crunchers at CoreLogic. Putting aside the question of, "What will a world of 3.5% 30-yr borrowers look like in five years?" there are still oodles of homeowners with rates in the 5% and 6% range who could benefit. "Roughly 69% of American homeowners with mortgages at the end of the second quarter had rates of 5% or higher and about 33% of them had rates above 6%, according to detailed mortgage data provided to The Times by Santa Ana research firm CoreLogic."

-Terry O'Donnell

I know there are many people who have tried but various problems keep them from refinancing.  If I haven't talked to you about it shoot me an email or call at (615) 777-4663 and we can discuss it. 

Outlook for a Housing Market Recovery

 Home prices may well find a bottom this year, and stronger sales should pave the way for a pickup in single-family construction over the course of 2012.

That’s the assessment made by Harvard University’s Joint Center for Housing Studies (JCHS) in its recently released “State of the Nation’s Housing” report. The report - which has been released since 1988 - is an essential resource for both public policy makers and private decision makers in the housing industry.

The bottom line of the report is that - after several false starts - there is reason to believe that 2012 will mark the beginning of a true housing market recovery.

 

However, employment growth remains a key factor, providing the stimulus for stronger household growth and bringing relief to some distressed homeowners. And, if the broader economy weakens in the short-term, the housing rebound could again stall.

 

Here are just some of the findings in the report:

 

• The monthly mortgage payment for the typical home currently compares more favorably to rents than at any time since the early 1970s.
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• By the first quarter of 2012, existing home sales were 5.2 percent above year-earlier levels, with single-family sales up 6.3 percent.
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• Sales of newly constructed homes in the first quarter of 2012 stood 16.7 percent above year-earlier levels.
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• The inventory of existing homes for sale shrank by some 23 percent in 2011, reducing the supply in the first quarter of 2012 to its lowest level since 2006.
•  
• Single-family permitting, a leading indicator of starts, was also up 16.9 percent in the first quarter of 2012.

The complete report provides a current assessment of:

 

• The state of the housing market and the foreclosure crisis
•  
• The economic and demographic trends driving housing demand
•  
• The state of mortgage finance
•  
• Ongoing housing affordability challenges

 

You can download the full report from the JCHS’s website. You can also download a convenient handout of Key Housing Industry Facts from the website.

 

 

 

~~Mortgage Market Guide

 

 

 

Good news and bad news

I have told you about how HUD is raising the MIP for their borrowers after April 1. Actually the final letter says April 9th now, so we got a few more days. So If you are thinking of buying, you would save money by getting the transaction far enough along to order the FHA case number and appraisal by then. The countdown is T minus 26 days


Now the good news. People that currently have an FHA loan that was closed prior to the first part of 2009 (date to be determined) will be able to get a considerably lower MIP for their refinance. This will mean a big savings. So if I ran the numbers for you and it didn’t look very good, it is about to get a lot better. But we have to wait until June 11.


You can reach me at 615-777-4663 (HOME) or email me at George.Margrave@migonline.com .  

Rents Expected to Climb in 2011

At long last someone other than your Realtor or Mortgage loan officer is recommending that you should buy rather than rent. According to an author at CNN Money if you can’t afford to buy a home, you may also have a problem renting. A record number of renters are spending more than half their income on housing according to a report released by the Harvard Joint Center for Housing Studies. And more middle-class folks are feeling the pinch.


Rents are expected to climb more than 7% this year where as housing has become very affordable to purchase. Part of the problem is that there is a flood of new renters who have had their homes foreclosed or lost in natural disasters.

If you think you can’t buy, you might be surprised. It is my job to figure out the answer to that puzzle for you.

I can be reached at 615-777-4663 or via email at George.Margrave@migonline.com

6 Myths of Buying a Home

Beware these 'truths' if you are in the market for a house.

FOR MANY first-time homebuyers, owning a home is a dream come true. But oftentimes, they come into the process with some unrealistic expectations and high emotions. If you're looking to buy, don't let your heart control your head. When it comes down to it, a real estate purchase is still a business transaction.

Beware of these myths:

1. "The perfect home is out there." Many buyers tend to focus on the one thing that's wrong with a home rather than the nine out of 10 things that are right. But buying a home is essentially an exercise in compromise. Don't expect to get everything on your wish list. Rather, decide which items are true deal-breakers.

2. "The House has to speak to you." Buyers often get caught up in how the home "feels" or "speaks" to them. But remember, real estate agents and stagers are paid to prepare the home so it evokes pleasant emotions from house hunters. Unless you're buying the furniture that's there, imagine your own belongings and look at the house with a critical eye.

3. "The listing information is always accurate." When it comes to listing sheets and real estate agents, don't take their work for it. If you're looking for specific square footage, bring a tape measure. Count the number of closets, cabinets and electrical outlets in your current home and compare it to homes you are looking at. If the show sheet says "finished basement," verify that it is truly finished.

4. "You should buy as much house as you can get." In real estates heyday, it was normal to see two people living in a 4,000-square-foot, five bedroom home. These days, it doesn't make financial sense. Buy a home based on what you need so you can live comfortably, not excessively.

5. "If your offer was accepted right away, it was too much." Buyer's remorse is common, especially in an uncertain market. But if you were comfortable with the offer you made before you saw the seller's reaction, then there's no point in second-guessing yourself. In any business deal, the goal is to make everyone feel like a winner.

6. "The value of the home will increase." If we learned anything from the housing crisis, it's that homes are not cash cows. Unless you're an experienced flipper, don't expect that $200,000 condo to be worth $300,000 in two years.

ANNALISA BURGOS, senior editor of HGTV's FrontDoor.com; USA WEEKEND, March 18-20, 2011

You can reach me via telephone at 615-777-4663 or email at George.Margrave@MIGOnline.com

Is Now the Time to Sell?

Is now the time to sell? I am going to mention mostly financial angles to consider when making this decision. And certainly, these are not the only considerations.

Many of you may have put off a move that you wanted to make. One reason may be that you have no equity in your home or may even be upside down. In that case you might not have a choice. However, if you have some money set aside, you may be able to pull it off.

That means you will have to put some money into the transaction to get to the closing table. We’re seeing this in many cases and are even refinancing some homes where borrowers are having to put some money into the deal to get a great interest rate. A short sale can be considered, but in most cases that means you will not be able to buy again for several years.

Again you have to consider the cash required to buy the new house. You will probably be able to move to the next house at a great price and at a great interest rate. If you are a Veteran or buy in a rural area you may be able to buy with no cash. If you don’t fit one of those categories you may want to go FHA which is 3.5% down. The cost on any of these can be paid by the seller or by the lender. (Ask me how)

If you would like to take a look at some numbers for yourself, give me a call at 615-777-4663 and we can take a look at it for you.