Lend Me Your Eyes - New York Real Estate and Mortgage Specialist

What Else Can Go Wrong????

2012-05-31T14:39:00.004-04:00

I have had two clients aak me this week if banks simply do not want to lend money right now and are looking for ways to decline loans. I have explained to them that while the banks tended to riskier investments prior to 2008 the pendulum has swung back to caution. Banks are lending money; lots of it. You just need to handle your finances conservatively leading up to a loan.

The following scenarios have caused the bank to take pause and question the loans.

- A self employed borrower just joined a partnership in January and has been receiving a draw against future earnings. The bank requires self employed income for at least six months in order to ok the loan and the income has to be on the tax returns.

- A borrower took $12,000 in non reimbursable expenses in 2011. The bank deducts that from her income and she did not qualify for the loan amount she requested. Luckily she was able to take a slightly smaller loan amount.

- An apartment appraised for 35% less than the last appraisal when the borrower tried to refinance. Luckily, all banks have an appraisal review process so we were able to save the loan. Banks contract out the appraisals so are unable to influence the value. They can review the appraisal, however, and increase the appraised value if they see fit.

Banks will lend. Borrowers need to be smart.

Credit, Credit, Credit

2012-05-21T11:22:00.003-04:00

From the NY Times yesterday. It's a lot of words for saying that your credit card balances should be less than 50% of the limit and wait if you have had any 30 day lates on your credit to apply for a mortgage.

ONE prescription for avoiding another real estate bubble is that banks tighten up mortgage requirements. Now, a new Federal Reserve report indicates that lenders have indeed been doing just that.

A majority of banks are less likely to offer loans to people with a FICO credit score of 620 and a 10 percent down payment than they were in 2006, according to the report.

Such stricter standards have drawn the attention of Ben S. Bernanke, the chairman of the Federal Reserve, who last week told a bankers group that “current standards may be limiting or preventing lending to many creditworthy borrowers.”

For those with lower credit scores, the math is stark: A borrower with a credit score of 720 can expect a rate of 3.70 percent on a 30-year, $300,000 fixed-rate mortgage, according to myfico.com, while someone with a score of 620 to 639 can expect a 5.07 percent rate — or an extra $242 per monthly payment.

First, though, it is worth noting that median credit scores are rising, as people reduce debt and spend less in tight economic times. Some 18 percent of Americans now have scores of 800 to 850, while 15 percent are below 550, according to FICO data. Through “good behavior,” you could raise your credit score by as much as 100 points in a year.

Often lenders will review your scores from the three big credit agencies, and they use the middle number to evaluate you.

Start by obtaining your three credit reports (available free once a year at AnnualCreditReport.com, or call 1-877-322-8228), and study them carefully for errors or omissions.

According to FICO, the two biggest factors in your credit score are your payment history, which accounts for 35 percent of the score, and the amounts owed, accounting for 30 percent.

Knowing that an effective way to raise your score is to reduce your balances on credit cards. If an account is in collection, it is too late to improve your credit score by paying it off. The notation that an account is in collection is what lowers the score, so consumers may get more mileage by paying down active credit-card balances and other debts first.

Though mistakes and bankruptcies may stay on your credit report for seven years, lenders will generally be more likely to overlook late payments that happened two or more years ago than more recent ones.

Improving your credit could take three to four months, or it could take as long as 18months.

Motorcycles Outside of Seagram Building

2012-05-15T10:56:00.001-04:00

Maybe You Should not Shop for a Mortgage Online

2012-05-14T13:04:00.004-04:00

I disagree COMPLETELY with this article from the NY Times this past Sunday. It has become increasingly difficult to close loans and my recommendation to people is to have a point person who is available close by. We (brokers) do not distribute credit reports and we save MUCH more time than shopping online without any guidance.

Shopping for a mortgage online can save borrowers a lot of time, and possibly money if they find the right deal. But working with these so-called online marketplaces can also be overwhelming for some people, especially as the various lender offers start pouring in.

Peter Carroll, the acting assistant director for mortgage markets at the newly formed Consumer Financial Protection Bureau, suggests that borrowers begin the process by reading the fine print of each site they choose to work with. “Understand the terms of use and privacy policies,” Mr. Carroll said.

If you are shopping for loan rates on sites like Bankrate.com or LendingTree, also be sure to read their “frequently asked questions” section, industry experts say — and recognize, too, that these sites are businesses that make money by working with lenders, via a pay-per-click formula or by generating leads.

If you provide personal information, including your credit score, find out how widely that material will be circulated. As Mr. Carroll put it, “Understand that many lenders may be contacting you.”

At Zillow Mortgage Marketplace, the average number of rate quotes customers receive is 20, while at LendingTree it is 3 to 5, according to both companies.

Most sites provide rates and other information only from lenders that are signed on as their customers. One exception is Bankrate.com, which offers one table that includes its lending clients as well as the five largest banks and other lenders in some 600 local or metropolitan areas.

The online mortgage marketplace has become increasingly popular for borrowers researching loan rates and options. Some 1,200 mortgage-related Web sites are tracked by Experian Hitwise, and the top seven sites drew more than 22 million total domestic visits in April, up 24 percent from a year earlier and 74 percent from April 2010. The numbers are expected to grow with the wider use of smartphones and other devices.

Doug Lebda, the chief executive and founder of LendingTree.com, noted that for the last three years, the difference between the highest and lowest rates available was “wider than it has been in recent history,” making comparison-shopping even more important. But he also pointed out that the advertised rates are “indicative rates but they’re certainly not offers.”

Mr. Lebda suggested that borrowers also consider the mortgage initiation fee and closing costs.

As they navigate through online mortgage sites, borrowers will need to find out the sites’ criteria for matching them up with lenders, and whether lenders can pay for higher placement. That’s where reading the fine print may come in.

“Make sure you feel you’re in control,” said Erin Lantz, the director of Zillow Mortgage Marketplace. That way you can give your personal information out to lenders of your choice.

Mortgage shopping sites will often advertise that they are making comparisons easier and faster for borrowers, but that could be counterproductive, said Sue Berkowitz, the director of the South Carolina Appleseed Legal Justice Center, which advocates for greater disclosures by these companies. “It should be time-consuming, and done with analysis.

I do agree with the last paragraph. Bravo.

Is it time to refinance AGAIN???

2012-05-09T14:06:00.004-04:00

The age old question for me - is it time to refinance AGAIN? The NY Times had an interesting article Sunday.

Those who refinanced their mortgages a year or so ago, when interest rates averaged just below 5 percent for a 30-year fixed-rate loan, may be wondering whether it’s time to refinance yet again, now that rates are at least a full percentage point lower.

Last week the average rate on a 30-year loan was 3.84 percent, down from 3.88 percent the previous week and 4.71 percent around the same time a year ago. The rate on the 15-year loan averaged 3.07 percent, off from 3.12 percent the previous week and 3.89 percent last year. A Freddie Mac spokesman says the rates are the lowest in the 41-year history of their weekly survey.

Many homeowners opted to refinance last fall and winter when mortgage rates first dipped below 4

If you’re considering refinancing, financial planners suggest you first delve into your financial goals — specifically, how long you expect to live in your home.

Some homeowners decide it makes more sense to stay with their current mortgage, especially if the savings are small or they plan to move within a year or two.

When you refinance, you’re not building equity. You are starting at the beginning of the amortization tables.

Amortization schedules work like this: In the first few years, almost all of the payment goes toward interest, so the longer you have the loan, the more is put toward the principal.

Those who refinanced in the last year or two don’t have to consider amortization tables, but they do need to know their equity position — and when the refinancing would begin to pay off.

To calculate that, start with a rundown of all the closing costs, then divide the closing costs by the amount you expect to save on each monthly payment. So if closing costs total $5,000, and your monthly savings are $400, it will take you 12.5 months to break even on refinancing.

If it takes you, say, three years to recoup the costs and you hope to move within two years, then refinancing does not make sense. Depending on your lender, you probably need to have 20 percent equity, and maybe a little more, if you want to wrap your closing costs into the new mortgage. Those who are underwater — shorthand for owing more than the home is worth — may consider the Home Affordable Refinance Program, or HARP, which is now widely available.

You also may want to consider a shorter loan term, to shave years off the payments and build equity faster.

Coop owners will have lower closing costs and therefore will need less of a monthly savings to make it worth it.

Record Low Mortgage Rates.

2012-05-03T12:49:00.003-04:00

Mortgage Rates Hit New Record Lows - from Elizabeth Trotta in Yahoo Finance.

Good news for prospective home buyers, bad news for those looking for signs of economic life in housing: Mortgage rates hit new record lows last week, thanks to underwhelming growth and economic concerns.

We've been following the weekly rates as the housing bulls and bears continue to declare bottoms and not-bottoms. Freddie Mac said Thursday the 30-year mortgage rate fell for a second week, to 3.84%, down from its previous all-time record low of 3.87% on February 9. The 15-year fixed average also fell to a new all-time low of 3.11%.

The 30-year rate hit a recent high of 4.08% in March but has been unable to top 4% since. Last year at this time, it averaged 4.71%.

Signs of slowing economic growth and inflation remaining subdued allowed yields on Treasury bonds to ease somewhat and brought most mortgage rates to new all-time record lows this week.

The economic news will continue with the most anticipated data of the month, the jobless report for April, due out on Friday. Right now most are betting on less than encouraging numbers.

Going into Foreclosure Usually Can't Help You

2012-04-26T12:09:00.002-04:00

Don't listen to anyone who tells you to go into foreclosure.

I have had two potential clients tell me that they received advice to NOT pay their mortgage for for months so that they could get mortgage relief. Mortgage lates are by far the worst item on credit reports. Credit card late payments can be explained and dealt with far more easily. Banks are somewhat forgiving of 30 day lates but once you get into 60 and 90 days lates, you can kiss virtually any mortgage product goodbye. Often people can't pay their mortgage because they can't afford it. Chances are refinancing your mortgage will NOT make the mortgage affordable.

The advice one should listen to is to try to make the mortgage payments and to sell the home as quickly as they can.

Bicycle

2012-04-19T12:25:00.002-04:00

Has Manhattan Real Estate Turned the Corner?

2012-04-17T11:40:00.004-04:00

This is from an interesting article in Sunday's NYTimes about the real estate market.

Even though the most recent market reports show Manhattan real estate prices holding steady, as they have for more than two years, other signs indicate that the New York City market may finally be willing to stop flirting with recovery and commit wholeheartedly.

To start with, open house traffic for some properties has reached levels not seen even at the height of the market in 2007 and 2008. But buyers haven’t just decided to start looking at properties again; they’re actually buying. Bidding wars have become more common.

On the development front as well, sponsors say the pace of sales has picked up with the warmer weather. Developers also say that banks that had steered clear of construction loans for residential buildings have started to loosen their purse strings, although they are still unlikely to approve loans for condo projects with more than 100 units.

Some warn that buyer exuberance could be short-lived. With Wall Street bonuses much smaller than in years past, the surge in buying may not last long

Of course, age-old maxims still hold, so spaces encumbered by less-than-ideal locations or inflated prices, or places that don’t show well, remain unlikely to generate much interest.

Along with limited supply, pent-up demand may also be driving the new activity.

When the financial crisis hit, buyers held back, waiting for the market to hit bottom. More recently, they waited in anticipation of a double-dip recession. Mortgage brokers, too, have seen an increase in buyers entering the market.

The increased demand is not just at the high end. People have decided to buy because their rent has just been raised 10 to 12 percent and the math just doesn’t work for them to keep renting anymore.

A Typical Thursday Morning in Manhattan

2012-04-12T10:51:00.000-04:00

Locking in Your Interest Rate

2012-04-09T13:41:00.003-04:00

From the NYTimes this weekend.

With mortgage rates inching higher, some borrowers might want to consider locking in which freezes the terms of a loan while it is being processed, potentially saving borrowers thousands of dollars over the life of the mortgage.

This guarantee may be especially important for those who are refinancing, where even a quarter of a percentage point could skew a borrower’s calculations and make a refinancing less financially desirable.

Rates for the 30-year fixed-rate mortgage averaged 3.95 percent nationwide in March, up from 3.89 percent in February, according to Freddie Mac, though that is still significantly lower than the 4.84 average rate in March 2011.

“We expect fixed-rate mortgages to gradually move higher over the next six months to about 4.25 to 4.5 percent as the country’s economic condition improves,” said Frank Nothaft, Freddie Mac’s vice president and chief economist. “This would be a move from the all-time record low rates we’ve experienced over the last few months but still at historically low levels.”

Rate lock-ins can provide buyers with some peace of mind, not to mention one less thing to think about in an otherwise onerous application process.

The cost of reserving an interest rate depends both on the duration of the lock and the amount of the loan. The longer the lock, the more costly it is. Most locks are for 30, 45 or 60 days, but some lenders will go as long as six months.

Borrowers may want to skip a rate lock-in, or delay taking one, if they are unsure when their home purchase or refinance will close.

Knowing how long to lock in a rate requires a clear picture of the mortgage process, and a good estimate from your lender on how long it will take to approve the loan and complete all the paperwork and other requirements. Your mortgage broker should be able to narrow that down for you.

Friday, April 6, 2012 Jobs Report

2012-04-04T11:06:00.005-04:00

While interest rates are at an all time low, I think clients have an added interest in having an interest rate of less than 4%. While the actual payments may not be that significant, it's quite something to be able to say your 30 year fixed rate is 3.875% or less.

The past 3 weeks have been very volatile in the mortgage world. While the highest rates went to was 4.125%, I think mortgage brokers everywhere were anticipating a run up of rates and a drying up of loans.

Yesterday, the Federal Reserve latest meeting minutes were released. In it, they implied that they begin to gradually ease up on trying to keep interest rates low. In one hour, mortgage rates went up by .25% which was a big swing. Nerves became quite frayed.

The ADP jobs report came out this morning. It seems that job creation, while not stopping, is slowing. Rates have come back down a little bit. Friday, the real jobs report comes out. If job creation is higher than anticipated, watch out. Rates of under 4% may become a fond memory.

Mortgage Brokers are Making a Comeback!

2012-03-28T13:09:00.002-04:00

It is understood that the mortgage broker industry was decimated after the mortgage crisis of 2008. I was told that in New York State alone, the number of mortgage broker shops fell from a high of 2,200 in 2007 to 900 currently. In some cases, this was well justified. Some mortgage brokers were responsible for a large part of the mortgage crisis and banks certainly punished the industry as a whole.

While stories abound about the bad brokers, what has happened to the good ones? We are still here and our business is growing. In the past 5 quarters, mortgage broker volume has risen from a low of 6.8% of all originations to 11.8% representing a growth from $29 billion to $51.3 billion. While much of this is probably the result of record low interest rates, one may conclude that the brokers who have remained in the industry through challenging times may know what they are talking about.

Talk to a broker. We may be able to help in an arena where there are many nuances that may not be immediately obvious.

Don't Quit Your Day Job

2012-03-21T14:04:00.004-04:00

Even once upon a time in the mortgage world, borrowers needed to have a job (or steady interest income) in order to get a mortgage.

Mortgage experts generally recommend that homeowners complete their refinancing before making any major career changes, especially if they are planning to start their own business or become an independent contractor, in which case income may fluctuate.

In addition to checking employment at the start of the application process, many lenders will verify such information as late as the last 72 hours before mortgage closing. Lenders make loans based on a moment-in-time snapshot of a borrower’s finances.

As long as the time when you’re closing that loan that you’re gainfully employed in the job that you said you were, you’re telling the truth. Often, the best path is to refinance first and change jobs afterward — especially if a borrower is changing careers.

Taking a new job right in the middle of a mortgage refinancing could mean extra time and paperwork. A lender may very likely want to see an employment contract or a job offer letter. While 30 days of pay stubs and employment verification is standard, lenders will require documentation of any employment change.

If you are counting on a future bonus, expect to be asked for a letter from your employer verifying that, too.

Fannie Mae Not Again

2012-03-15T15:15:00.004-04:00

Sponsors. Another headache. I have a condo that has 330 units, 104 of which are owned by the sponsor (37%) NO ONE will touch that building. The most liberal banks will only lend in a building that is 30% sponsor owned.

This situation is a real Catch 22. No one can refinance and sellers are severely hindered by the fact that buyers can't get financing. Many owners rent out their apartments and further diminish the owner occupancy percentage.

What to do? Boards of buildings that need Fannie Mae waivers must invest time and resources to work with banks to persuasively and accurately present the issues to Fannie Mae in order to receive a waiver. At the first hint of a problem, the borrower's attorney should work with both the lender's counsel and the board's attorney to coordinate information and initiate a waiver application. A good mortgage broker should also have access to information that will preclude a purchase in a building that can't get financing.

Fannie Mae Not

2012-03-08T12:19:00.003-05:00

There was a great article in Habitat magazine about how the new Fannie Mae guidelines for coops and condos may undermine apartment sales and hamstring governing boards. It included several scenarios including:

A shareholder applies to refinance her mortgage in a coop building that has long-standing litigation that relates to a potentially substantial financial obligation; one well within the ability of the coop and its shareholders to pay. In the past, lenders have accepted this. Under new guidelines from Fannie Mae the pending litigation makes the cooperative "ineligible" and the loan is denied.

I have this exact situation right now. On a current coop purchase, we are on hold with the original Fannie Mae lender and have applied to a non Fannie Mae lender that portfolios its loans. It has been an unending headache for the attorney, the real estate brokers, the borrower and me.

In this case, it paid dividends to the borrower to have engaged a mortgage broker. While certain fees were paid twice (appraisal, UCC-1) the borrower did not have to shop banks to see which would allow financing in the building.

The G-Fee

2012-03-02T12:18:00.004-05:00

As if the mortgage world was not volatile enough, a new fee was imposed this week by Fannie Mae and Freddie Mac. Excerpts here from the New York Times about the "G-fee."

Inside the interest rate quoted on your home mortgage lies a small hidden fee that has been charged by government-sponsored entities like Fannie Mae and Freddie Mac for more than three decades. It’s an add-on rate known as the guarantee fee. An increase in the fee has been mandated by Congress to occur this spring, and other increases are likely later this year and next. The G-fee — as it is known — does not show up in borrowers’ mortgage documents or good-faith estimates, and it is little known outside the industry. It gets incorporated into the interest rate for the mortgage.

An interest rate is usually made up of three parts: the largest goes to the bank or the investors who buy the loan; a smaller portion is for the mortgage servicer that collects monthly payments; and then there’s the guarantee fee. Fannie and Freddie charge guarantee fees as a form of insurance against default for the loans they acquire and resell to investors.

Some say the increase in the guarantee fee will very likely push up mortgage rates on new loans by one-eighth of a percentage point. Current rates reflect the increase in the fee.

One way to avoid the guarantee fee is to use a lender that does not sell off its loans — for instance, a community bank or a credit union.

Fannie and Freddie have collected G-fees since the introduction of mortgage-backed securities in the early 1980s. Both organizations started raising fee rates in 2008 during the housing crisis, as foreclosure costs rose.

What does this mean for the borrower? Rates are slightly higher than they were before the fee was imposed. Bottom line, rates are still at an all time low.

Points, Schmoints

2012-02-28T16:17:00.006-05:00

This is from another interesting NYTimes article about how paying points for a mortgaeg is losing favor.

With interest rates at or near record lows, many borrowers are seeing little reason to pay points when buying or refinancing a home. Some are even opting for what’s known as “negative points,” agreeing to a slightly higher rate to help pay closing costs.

The trend away from points, which buy down the interest rate in exchange for an upfront fee, partly reflects borrower sentiment that rates are already low enough.

In New York and other areas with a mobile population, many people avoid mortgages with points, because they know they won’t be staying put long enough to break even on the costs, which typically takes five to seven years.

Nationwide, 32 percent of loans for purchases had paid points in December, down from 47 percent in December 2008, according to the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac.

A point equals 1 percent of the loan amount, so paying one point on a $250,000 refinancing costs an extra $2,500 at closing, atop other mortgage fees, taxes and escrow amounts. Paying a point usually reduces the interest rate by 0.25 points over its term, so for instance instead of 4 percent, the rate is 3.75 percent.

The chief advantage to paying points is you lower your rate and your monthly payment based on a one-time charge. Your mortgage professional should take time to find out what works for your circumstances, then structure the loan and fees and commission accordingly, he said.

So how do you know if paying points is worthwhile? There are two key considerations: how long you plan to live in a home, and how much you can afford in closing costs.

Many mortgage professionals suggest a rule of thumb on living in a home for at least five years to reap the savings. Others suggest doing an analysis of your financial goals, along with a direct comparison of no-point and point mortgages.

Some borrowers, meanwhile, go for negative points, which is also called a lender rebate or points in reverse. In exchange for accepting a higher rate, the lender agrees to give the borrower a credit, which is usually used for closing costs.

Why a Mortgage Broker?

2012-02-22T13:53:00.005-05:00

Shepherd: a person who protects, guides, or watches over a person or group of people.

Why should you use a mortgage broker? One of the positive outcomes of mortgage crisis is that the rate offered to borrowers does not vary much from bank to bank. Many people decided that they may as well go to the local bank where they bank and get their loan there. Why not?

Easy. For the most part bank branches don't process loans themselves. In fact, they often do not have a mortgage specialist in house. Many times, the mortgage loans are processed in remote offices in different states.

A mortgage broker "shepherds" the loan from beginning to end. Documents don't get lost, sent to several different people and delayed for unexplained reasons.

It is stressful enough borrowing large sums of money. You want the same person answering your questions from the beginning and being responsible for your loan throughout the process.

To Rent or to Buy - the Age Old Question

2012-02-13T12:53:00.003-05:00

An interesting article from the NY Times about the current New York rental and purchase markets.

When the real estate market was booming in 2007, renters showed up at apartments with checkbook in hand, ready to do battle with anyone else who might want the same place. That changed, of course, when the financial crisis hit in 2008. And the heady days that followed, when renters ruled in a down market, are now a fading memory.

In 2011 landlords once again got the upper hand as prices rose and vacancies dwindled. Multiple applications even made a comeback late last summer. All signs say landlords are likely to keep that advantage for a long time. In certain neighborhoods, rents are setting new records, exceeding the heights of 2007. Some landlords say that in extreme cases, eager renters have even bid up rents.

The demand in some buildings has become so intense that there are waiting lists bearing the names of dozens of potential tenants. This was unheard of during the downturn.

With fewer new buildings scheduled to open this year, inventory for luxury rentals will remain tight, helping to keep prices up at the high end. This pressure will inevitably trickle down to the lower end of the market.

Rental brokers said that rental prices had been buoyed in part by tighter mortgage lending, which has discouraged many potential first-time buyers from entering the sales market.

Rents in traditionally coveted neighborhoods like the West Village and Chelsea have hit new heights. But records are also being set in areas that are not as well traveled, including the financial district and Midtown West, where new rental towers have helped pull up average prices.

According to Citi Habitats data, the city’s priciest studios can be found in Chelsea, where the average rent is $2,332 a month; and the West Village claims the most expensive one-bedrooms, $3,278 a month.

But the financial district is not far behind, getting record rents for its one-bedrooms, at an average of $3,255 a month, and its two-bedrooms, at $4,575 a month.

Fewer new apartments are coming to market this year than in years past, largely because construction financing has been tight and the number of building permits issued by the city fell drastically after 2008. Citi Habitats Marketing Group estimates that there are only about 2,200 new rentals in Manhattan this year, down from more than 3,600 in 2011.

Many projects, including some rentals initially designed to be condos, will finally be finished in 2013 or 2014.

The purchase market is getting tighter as well. It seems that a lot of pent up demand from the financial crisis is driving both the rental and purchase markets.

Central Park on a Beautiful February Morning

2012-02-06T12:44:00.001-05:00

A little different than the snow covered park.

Bernanke's comments

2012-02-02T12:58:00.005-05:00

"Uncertain job prospects, along with tight mortgage credit conditions, continue to hold back the demand for housing. Although low interest rates on conventional mortgages and the drop in home prices in recent years have greatly improved the affordability of housing, both residential sales and construction remain depressed. A persistent excess supply of vacant homes, largely stemming from foreclosures, is keeping downward pressure on prices and limiting the demand for new construction..."

That is the market in a nutshell. So the question is, what should you do?

Certainly, if you are in the market for a purchase, I think you should pursue it. Also, Obama is working on making refinaning easier for those who currently can't. Ultimately, the job and housing markets are so intertwined that as one goes, so goes the other. Look for an all out effort to improve the housing market.

Refinancing, Why Wait?

2012-01-30T12:14:00.003-05:00

"Greece rejected an European Union-appointed budget watchdog appointed to Athens as a condition of bailout money."

In and of itself that does not sound like it should be affecting US mortgage rates. But it has. US Treasury 5 year bonds that are somewhat related to mortgage rates are at an all time high driving rates even lower.

Basically, until Europe has a plan as to how they are going to fix the economy, money is flowing into US Treasuries, reducing mortgage rates. These actions are taking precedence over internal US conditions including the employment rate. Should Europe look like they are coming to a consensus about solving their problems, look for rates to go up.

Sample rates:

30 year fixed to $417,000 - 3.75%
30 year fixed $417,001 - $625,500 - 4%

No one has any idea how long this will last.

Investing in Making a Home "Market Ready"

2012-01-24T11:51:00.003-05:00

I have my real estate sales license. I occasionally show apartments for a friend who is a broker. This past weekend I showed a Manhattan jumbo studio on a high floor in a nice Manhattan, upper westside builidng. The apartment has a decent kitchen and bathroom and a lot of space for a Manhattan studio. However, the apartment has sustained some kind of water damage and the paint by the HVAC unit is peeling and unsightly.

The day was busy and several people looked at the apartment. Every one of them immediately went to the area of the peeling paint and dismissed the apartment as "damaged."

Clearly, the apartment needs updating. While I think that it would not be cost effective to redo the kitchen and bathroom before putting the apartment on the market, a coat of paint will probably pay for itself many times over.

Finally Snow in New York

2012-01-23T12:55:00.002-05:00

Central Park. January 22, 2012