The O.C. Real Estate and Mortgage Blog

Reverse Mortgages : Pros And Cons

noreply@blogger.com (Anonymous) — Tue, 08 May 2012 13:03:00 +0000

Despite several big-name banks pulling the product from their respective home loan offerings, reverse mortgages remain a popular mortgage choice among homeowners aged 62 or over.

A reverse mortgage is exactly what it sounds like -- a mortgage in reverse. Rather than borrow a fixed amount of money then pay that loan balance down to zero as with a "forward" mortgage, a reverse mortgage starts at a given loan balance and works its way up as scheduled payments are added to the existing loan balance.

This 4-minute piece from NBC's The Today Show highlights a few pros and cons of reverse mortgages, and the reasons why you may want to consider one, including :

NO Mortgage Payments are ever due on your home
There is no credit check required for a reverse mortgage
There is no income requirement to qualify for a reverse mortgage

There are some basic qualification standards for the reverse mortgage program including a requirement that all borrowers on title must be 62 years of age or older; and that the subject property be a primary residence. Loan fees can also be higher than with a conventional-type mortgage.

If you meet the qualification standards, with a reverse mortgage, you have flexibility in how your home equity is distributed to you. You can receive a lump-sum payment, elect for monthly installments over time, create a line of credit, or a combination of all three.

Like all mortgages, reverse mortgages are complex instruments. That's one reason why all reverse mortgage borrowers are required to attend counseling -- the government wants you to be certain that you understand the nuances of the reverse mortgage program.

Your lender will want you to understand the program, too.

If you are 62 or older and your owner occupied home is in CA, give us a call at (800) 564-1500 to discuss whether a Reverse Mortgage is Right for You

Home Values Start The Year Strong

noreply@blogger.com (Anonymous) — Wed, 02 May 2012 13:05:00 +0000

Home prices started the year on an upswing.

According to the Federal Home Finance Agency's Home Price Index, home prices rose by a seasonally-adjusted 0.3 percent between January and February 2012. The index is up 0.4% over the past year, offering a counter-story to the Case-Shiller Index's assertion that home values are sinking.

Last week, Standard & Poor's Case-Shiller Index said home values had dropped more than 3 percent in the prior 12 months.

As a home buyer or seller in Anaheim Hills , data showing "rising home values" or "falling home values" may be of interest to you, but we can't forget that most home valuation trackers -- including both the government's Home Price Index and the private sector Case-Shiller Index -- have a severe, built-in flaw.

Both used "aged" data. Today, the calendar reads May. Yet, we're still discussing February's housing data.

Data that is two-plus months old is of little value to everyday buyers and sellers wanting to know the "right now" of housing. And, even then, characterizing the data as "two-plus months old" may be a stretch. This is because the home values used in the Home Price index and the Case-Shiller Index are collected from actual transactions, but at the time of closing.

Considering that most purchases require 45-60 days to close, we can know that when we look at the Home Price Index and Case-Shiller Index reports for February, what we're really seeing is a snapshot of the housing market as it existed two-plus month plus 60 days ago.

Data that's 5 months old is of little relevance to today's buyers and sellers. Today's market is driven by today's economics.

The Home Price Index is a useful gauge for economists and law-makers. It highlights long-term trends in housing which can be helpful in allocating resources to a particular project or policy. For home buyers and seller throughout CA , though, it's much less useful. Real-time data is what matters to you.

For that, talk to a Real Estate professional at Pinnacle Mortgage & REalty Group Anaheim Hills CA today

Mortgage Rates Fall Back Below 4%

noreply@blogger.com (Anonymous) — Fri, 30 Mar 2012 13:19:00 +0000

After a brief run-up two weeks ago, mortgage rates are back below 4 percent. It's good news for home buyers and mortgage rate shoppers of Yorba Linda because with lower mortgage rates come lower mortgage payments.

According to Freddie Mac's weekly Primary Mortgage Market Survey, the national, average 30-year fixed rate mortgage rate fell to 3.99 percent this week from last week's 4.08 percent.

Last week had marked the first time since December 2011 that the benchmark rate crossed north of 4 percent -- a span of 16 weeks.

And, it wasn't just rates that got cheaper this week -- closing costs dropped, too.

Freddie Mac's survey showed that the average number of discount points to accompany a 30-year fixed rate mortgage fell one-tenth of a percent this week to 0.7, where one discount point is equal to one percent of your loan size.

As a real-life example, a $200,000 mortgage with an accompanying 0.7 discount points would be subject to an additional $1,400 one-time closing cost. Last week, that cost was $1,600.

Note, though, that these are average mortgage rates for the nation. On a local level, rates may be higher or lower, and so may the accompanying number of discount points.

For example, in this week's Freddie Mac survey, each U.S. region boasts its own "average rate" :

Northeast Region : 4.00% with 0.7 discount points
West Region : 3.94% with 0.9 discount points
Southeast Region : 4.01% with 0.8 discount points
North Central Region : 3.99% with 0.6 discount points
Southwest Region : 4.02% with 0.8 discount points

These rates are each well below the average rates of a year ago when the average 30-year fixed rate mortgage was 4.86%.

Low mortgage rates can't last forever so if you've been wondering whether now is a good time to buy a home or refinance one; or whether rising rates will harm your monthly budget, the answer may be yes. A weak economy held mortgage rates low last year. An improving economy should push rates higher this year.

Talk to a Mortgage Specialist at Pinnacle Mortgage Group today or visit us on the web to check daily rates or download Free Reports.

Looking ahead to spring and summer, mortgage rates appear poised to rise.

Call or click Today; (800) 564-1500 or http://pinnaclemortgagebroker.com

Are You Wasting $471 Per Month On Your Mortgage?

noreply@blogger.com (Anonymous) — Wed, 07 Mar 2012 14:13:00 +0000

According to Freddie Mac's weekly mortgage rate survey, for 13 straight weeks, the average 30-year fixed rate mortgage has held below 4.000% for mortgage applicants willing to pay up to 0.8 discount points plus a full set of closing costs.

These are the lowest mortgage rates in history and now -- with a bevy of loan programs for the nation's 11 million "underwater homeowners" including HARP, the FHA Streamline Refinance, and the VA IRRRL -- millions of U.S. homeowners can exploit the current mortgage rate environment.

In this 4-minute clip from NBC's The Today Show, you'll learn about today's mortgage market and your refinancing opportunities in CA.

The video begins by telling us that 14 million credit-worthy Americans have yet to refinance their respective mortgages, and are leaving an average of $471 in "wasted savings" on the table each month which adds up to more than $5,600 annually.

That's a big number.

Some of the video's other key points include :

Refinancing is "worth the hassle" when mortgage rates are as low as they are today
The best rates are reserved for homeowners with the highest credit scores
Comparison shop -- your current mortgage lender may not offer you the best rates

Furthermore, the video reveals the characteristics of the homeowner type most likely to benefit from a refinance. These traits include having with 20% equity in the home; have plans to live in the home for at least the next 36 months; carrying a current mortgage rate of 5 percent or higher.

It should also be added that, with a zero-closing-cost or low-closing-cost mortgage, even a small reduction in your mortgage rate can make a refinance worthwhile.

Mortgage rates are low but can't stay low forever. If you haven't participated in the Refi Boom, talk with a Loan Specialist at Pinnacle Mortgage Group Anaheim CA Today and review your mortgage options. You may be able to save hundreds of dollars per month with just modest closing costs.

Call us Today (800) 564-1500 or visit us on the web at www.LowRatesOnline.net

Existing Home Sales Climb To A 20-Month Record

noreply@blogger.com (Anonymous) — Thu, 23 Feb 2012 14:05:00 +0000

January's home resales moved to a 20-month high -- additional evidence that the nation's housing recovery is underway.

According to the National Association of REALTORS®, the January 2012 Existing Home Sales showed 4.57 million units sold last month on a seasonally-adjusted, annualized basis -- a 4 percent increase as compared to December's revised figures.

An "existing home" is one that's been previously occupied and cannot be categorized as new construction.

Beyond the headline numbers, though, there was plenty about which for today's Orange home sellers to get excited. Demand for homes remains strong, foreshadowing higher home prices through 2012.

First, the national housing stock is at a 5-year low.

In January, the number of homes for sale nationwide slipped to 2.31 million, the smallest home inventory since February 2007, and a 21% decrease from just one year ago.

Falling home supply amid constant home demand leads home prices higher. At the current pace of sales, today's complete home inventory would "sell out" in 6.1 months.

Analysts say that a 6-month supply is a market in balance. Anything less is Bull Market territory.

Second, the National Association of REALTORS® says that one-third of all homes under contract "failed" last month. This means that many more buyers tried to buy, but couldn't for a number of reasons including mortgage denials; or, insurmountable home inspections issues; or, homes appraising for less than the contract price.

As contract failures subside, Existing Home Sales are expected to rise even faster.

And, lastly, first-time buyers continue to power the home resale market. In January, 33% of all sales were made to first-time buyers, up four points from last year. This statistic suggests that renters are moving into homeownership, an important component in a sustained housing market recovery.

Given high demand and shrinking supply, we should expect for home prices to rise in the coming months, if they haven't already. Thankfully, mortgage rates remain near all-time lows.

Low mortgage rates make homes more affordable.

Get Pre-Approved for your home Now.....Easy, Quick and Secure at www.LowRatesOnline.net or talk with one of our Loan Specialists toll free (800) 564-1500

What's Ahead For Mortgage Rates This Week : February 21, 2012

noreply@blogger.com (Anonymous) — Tue, 21 Feb 2012 16:30:00 +0000

Mortgage markets worsened last week as the Eurozone moved closer to a bailout agreement with Greece, and the U.S. economy displayed more signs of growth.

In response, mortgage rates climbed last week.

Rate shoppers should not be surprised that rates ticked north. Since mid-2011, weakness in Greece has helped keep mortgage rates low and the same is true for a weak U.S. economy. Wall Street has sought "safe assets" as protection from risk and that's driven mortgage rates down.

Now, the safe haven buying that served to anchor low rates appears poised to reverse.

Last month, it was shown, consumer spending rose to record levels and the housing market surpassed analyst expectation again. Homebuilder confidence is now at a 4-year high and Single-Family Housing Starts topped one-half million units for the second straight month.

Conforming mortgage rates in CA rose for the first time in a month last week. Unfortunately, few shoppers knew because Freddie Mac's weekly mortgage rate survey failed to capture the change. The survey deadline was Tuesday. Rates started rising Wednesday morning.

Freddie Mac's weekly mortgage rate survey put the average 30-year fixed rate mortgage unchanged at 3.87% for borrowers willing to pay 0.8 discount points plus a full set of closing costs.

Rates are higher today.

Beyond Greece and the U.S. economy, inflation is another reason mortgage rates are up. Inflation is the enemy of mortgage rates and, an on annual basis, the core Consumer Price Index registered 2.3% -- it's highest reading since 2008. The Fed expects inflation to ease later this year but if gas prices stay high, the Fed's forecast may be wrong.

This week is holiday-shortened. Look for Greece to dominate headlines (again) and watch for housing data toward the end of the week. Existing Home Sales is released Wednesday. New Home Sales is released Friday.

For now, mortgage rates remain low. It's most likely a safe time to lock a long-term rate.

Housing Starts Stay Strong; Building Permits Rise.

noreply@blogger.com (Anonymous) — Fri, 17 Feb 2012 14:11:00 +0000

The housing market has carried forward its year-end momentum.

According to the Census Bureau, on a seasonally-adjusted, annualized basis, January's Single-Family Housing Starts crossed the half-million unit marker for the second straight month.

This hasn't happened in close to 2 years and is the latest in a series of strong data that suggests the beleaguered housing market has turned a corner -- both nationally and locally in Orange.

Although single-family starts slipped 1 percent from December, January's annualized 508,000 figure represents a 16% spike from January 2011 and is the second-highest reading since April 2010 -- the last month of 2010's federal home buyer tax credit program.

A "housing start" is a new home on which construction has started.

The strength of January's Housing Starts data surprised Wall Street analysts and is partially responsible for Thursday's unexpected mortgage rate spike.

In hindsight, though, we should have seen this coming.

Earlier in the week, the National Association of Homebuilders announced that homebuilder confidence had climbed to its highest point since 2007 amid builder reports of rising sales volume and the most foot traffic from buyers in more than 4 years.

In addition, builders expect to sell more homes in 2012 than in 2011.

Builders are building and buyers are buying.

Meanwhile, as another sign of housing market strength, the Census Bureau reports that, in January, Building Permits moved to a multi-year high as well. Permits issued for single-family homes in January rose 1 percent from December, a statistic that suggests housing will continue its run through the spring season, at least.

86 percent of homes break ground within one month of permit issuance.

It's a good time to be a home buyer. Mortgage rates and home prices are low. Housing market momentum, however, is building. If you're on the fence about whether to buy a home , ask your real estate agent for additional market information.

The cost of home-ownership may never be as low as it is today.

Call Today and speak with a Professional Mortgage Consultant at (800) 564-1500 or visit us online at: www.lowratesonline.net

Quick Tips : Boost Your Credit Score For Better Mortgage Rates

noreply@blogger.com (Anonymous) — Thu, 09 Feb 2012 14:02:00 +0000

Credit scores play a huge role in today's mortgage market -- larger than at any time in recent history. Blame it on the high default rates of the last half-decade. Lenders are reserving their lowest rates for the customers most likely to make on-time repayments.

Mortgage rates are at an all-time low in CA. However, the low rates you see advertised on TV and online are only available to the home buyers and would-be refinancers whose credit scores are pristine. Having a high credit score is often the difference between getting "the best rates" from your lender, and getting something worse.

The first part of improving your credit score is understanding how it works. In this 5-minute piece from NBC's The Today Show, you'll learn the basics :

Why you shouldn't close a credit card after you pay off a large debt
What is the maximize balance to leave on your credit cards, relative to your credit limit
What types of credit checks harm your credit scores, and which ones don't

You'll also learn how to shop for a mortgage with multiple lenders without having your credit score "dinged", as well as several proven methods to raise your credit score quickly.

In the end, good credit scores are the result of paying bills on time and staying with your means. Those with the best scores, get the best rates.

Call or visit us on the web to check our Low Rates or Get Pre-Approved Fast! We'll even walk you thru Credit Improvement Process step by step Saving you $1000's in unnecessary fees to those Credit Correction Co's.

www.LowRatesOnline.net

(800) 564-1500

Pending Home Sales Index Posts Second Best Month Since April 2010

noreply@blogger.com (Anonymous) — Fri, 27 Jan 2012 14:03:00 +0000

After 3 consecutive months of growth, the housing market appears to have eased a bit in December.

According to the National Association of REALTORS®, December's Pending Home Sales Index slipped 4 percent from the month prior. The index measures the number of homes under contract to sell nationwide, but not yet sold.

Despite falling below its benchmark "100 value", December's Pending Home Sales Index is the reading's second-highest value since April 2010 -- the last month of last year's home buyer tax credit program.

In other words, the housing market continues to show signs of improvement, propelled by low home prices and the cheapest mortgage rates of all-time.

Freddie Mac's mortgage rate survey put the 30-year fixed rate mortgage at an average of 3.96% in December -- a 75-basis point improvement from December 2010. This helps to make homes more affordable nationwide.

On a regional basis, December's Pending Home Sales Index varied :

Northeast Region: -3.1 percent from November 2011
Midwest Region : +4.0 percent from November 2011
South Region : -2.6 percent from November 2011
West Region : -11.0 percent from November 2011

But even regional data is only so helpful. Like everything in real estate, data must be local to be relevant.

Throughout the West Region, for example, the U.S. region in which pending home sales fell the most, several states must have performed better than the regional average. And, undoubtedly, there were cities, towns, and neighborhoods that experienced marked market growth.

Unfortunately, the Pending Home Sales Index can't capture that data. Nor can it identify the markets in which home sales suffered.

For today's Anaheim Hills home buyers and sellers, therefore, it's important to understand your local market and the drivers of local activity. Reports like the Pending Home Sales Index can paint a broad picture U.S. housing but for data that matters to you, you'll want to look local.

For local real estate data, talk to an experienced real estate professional.

Planning to Shop for a Home this Spring? If so, it's Imperative that you do so with your Pre-Approval Letter In Hand..... ...visit us at www.HomeLoanShop.co and Click Apply Now to Get Started. It's Fast, Easy and Secure. Or call and speak to a seasoned mortgage professional at (800) 564-1500 Today!

Foreclosure Filings Fall To 49-Month Low

noreply@blogger.com (Anonymous) — Wed, 18 Jan 2012 13:59:00 +0000

Foreclosure filings are fewer these days, according to foreclosure-tracking firm RealtyTrac.

In December 2011, the number of foreclosure filings nationwide fell 9 percent from the month prior. Not since November 2007 has foreclosure activity been this sparse across the country.

The drop does not appear to be seasonal, either.

Last month's foreclosure filings were down 20 percent from December 2010 with "foreclosure filing” defined to include any one of the following foreclosure-related events : (1) The serving of a default notice, (2) A scheduled home auction, or (3) A bank repossession. As a result of a unexpectedly strong year-end, 2011's annual foreclosure rate was the lowest in 4 years.

One reason why the year may have closed so strongly is that Nevada, California, Michigan and Arizona -- four states typically associated with high rates of foreclosures -- each posted big drops in foreclosure filings between November and December, plus double-digit drops between December 2010 and December 2011.

In fact, among the country's top 10 states for foreclosure activity, nine showed an annual foreclosure filing reduction.

Only Delaware worsened.

It’s also noteworthy that just 4 states accounted for half of last month's total foreclosure filings.

California : 25.8 percent of all foreclosure filings
Florida : 12.0 percent of all foreclosure filings
Michigan : 6.4 percent of all foreclosure filings
Illinois : 6.2 percent of all foreclosure filings

Foreclosures are heavily concentrated, in other words. By contrast, the last 1% of activity is spread across 14 states.

As a Anaheim Hills home buyer -- first-timer or investor -- foreclosures can be a great way to find value.

According to the National Association of REALTORS®, distressed homes typically sell at "deep discounts" as compared to like, non-distressed homes. However, when you buy a foreclosure home from a bank, it's different from buying a home from a "person". Purchase contract negotiations are different and months may pass before your closing is approved.

If you're buying foreclosure, therefore, seek the help of a professional real estate agent. Real estate agents have experience working in the process-heavy world of foreclosures and can help you come out ahead.

Lock Your Mortgage Rate : New Loan Fees Expected Within Days

noreply@blogger.com (Anonymous) — Tue, 10 Jan 2012 13:59:00 +0000

Starting soon, nearly all home buyers and refinancing households throughout CA and nationwide will pay higher mortgage loan fees. Congress has made it law.

13 months ago, as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Congress enacted a one-year cut to FICA payroll taxes.

FICA stands for Federal Insurance Contributions Act. Taxes collected under FICA fund such programs as Social Security and Medicare.

The stimulus plan temporarily lowered tax rates for salaried workers from 6.2% to 4.2%; and for self-employed persons from 12.4% to 10.4%. Effective January 1, 2012, "regular" tax rates were to return.

That is, until late-December 2011. In one of its last moves of the year, Congress passed a temporary, two-month extension to the payroll tax cut, extending it through February 29, 2012. The expected cost to the U.S. Treasury is $33 billion.

To recoup those costs, Congress has turned to Fannie Mae, Freddie Mac and the FHA.

Each entity has been ordered to collect news fees on each new mortgage is backs, and has been told to forward said fees to U.S. Treasury directly. There's no "workaround" allowed or forgiveness applied -- each new loan is subject to the payment.

The rules are listed on page 17 of the law's final draft, in a section unambiguously titled "Title IV -- Mortgage Fees and Premiums".

According to the law :

Fannie Mae and Freddie Mac must collect an average fee of no less than 10 basis points (0.1%) per new loan
The FHA must raise its monthly mortgage insurance premiums 10 basis points for all new loans

The expected cost to consumers is no less than $10 monthly per $100,000 borrowed. Some analysts, however, expect Fannie Mae and Freddie Mac to collect more than is minimally required. This could add an additional $30-50 to your monthly mortgage payment per $100,000 borrowed.

Therefore, if you've been shopping for a home or for mortgage rates in Anaheim Hills , take advantage. Within days, lenders are expected to start collecting Payroll Tax Extension fees from mortgage applicants -- a move that will cost you money.

Lock today to avoid the big fees. Save yourself money.

Housing And Mortgage : The Experts Make Their 2012 Predictions

noreply@blogger.com (Anonymous) — Wed, 04 Jan 2012 13:57:00 +0000

As the new year begins, there are no shortage of stories telling us what to expect in 2012. Housing finished 2011 with momentum and mortgage rates closed at the lowest rates of all time.

Some expect those trends to continue through the first quarter and beyond. Others expect a rapid reversal.

Who's right and who's wrong? A quick look through the newspapers, websites and business television programs reveals "experts" with opposing, well-delivered arguments views. It's tough to know who to believe.

For example, here are some "on-the-record" predictions for 2012 :

Home prices will rise in 2012 (says Freddie Mac)
Home prices will fall in 2012 (says CBS News)
Mortgage rates will rise in 2012 (says American Banker)
Mortgage rates will fall in 2012 (ays the LA Times)

The issue for buyers, seller, and would-be refinancers in Yorba Linda and nationwide is that it can be a challenge to separate a "prediction" from fact at times.

When an argument is made on the pages of a respected newspaper or website, or is presented on CNBC or Bloomberg by a well-dressed, well-spoken industry insider, we're inclined to believe what we read and hear.

This is human nature.

However, we must force ourselves to remember that any analysis about the future -- whether it's housing-related, mortgage-related, or something else -- are based on a combination of past events and personal opinion.

Predictions are guesses about what might come next -- nothing more.

For example, at the start of 2009, few people expected the 30-year fixed rate mortgage to stay below 6 percent, but it did. Then, at the start of 2010, few people expected the 30-year fixed rate mortgage to stay below 5 percent, but it did.

All we can know for certain about today's market is that both mortgage rates and home values are low, creating favorable home-buying conditions nationwide.

At that start of last year, few people expected mortgage rates to even reach 4 percent. Today, rates "with points" price in the 3s.

What 2012 has in store we just can't know.

New Home Sales Approach Bull Market Territory

noreply@blogger.com (Anonymous) — Wed, 28 Dec 2011 14:04:00 +0000

New home inventory is approaching bull market territory.

According to the Census Bureau, the number of new homes sold rose 2 percent in November. On a seasonally-adjusted, annualized basis, home buyers bought 315,000 newly-built homes last month.

November's New Home Sales data marks the 4th straight month of rising sales volume, lifting the housing-market metric to a 7-month high, and adding to the housing market's recent show of strength.

Last week, we learned that Existing Home Sales also climbed in November.

The big story in the New Home Sales report, though, is the remaining new home supply nationwide.

With just 158,000 homes "on the market" and the pace of home sales hastening, the complete, national inventory of "new homes" would now be sold in just 6.0 months, a 0.2-month improvement from October. This is the quickest home sales pace in nearly 6 years for the new construction market.

It's even faster than in April 2010 -- the buyer-deadline month of last year's federal home buyer tax credit.

Home builders expect the trend to continue, too. Buyer foot traffic is on the rise and builders have a strong outlook for the next 6 months.

It's an unsettling series of developments for today's Yorba Linda home buyers. As home supplies drop and builders gain confidence, the ability of an buyer to negotiate for price reduction and/or upgrades shrinks.

If you're a home buyer in search of new construction, therefore, consider that the best new construction "deals" of the next 12 months may be the ones you find today.

Pay Your Mortgage Early, Boost Your 2011 Federal Income Tax Deductions

noreply@blogger.com (Anonymous) — Fri, 23 Dec 2011 14:03:00 +0000

Time is running out to boost to your 2011 federal tax refund. All you have to do is make your January 2012 mortgage payment while it's still December.

It's a simple tax strategy that works because of how mortgage interest is paid, and of how the U.S. tax code is written.

Different from rent which is paid for the month ahead (i.e. "you're paying January's rent"), mortgage payments are made only after mortgage interest has accrued (i.e. "you're paying for money you've already borrowed from the bank").

This is called "paying interest in arrears" and U.S. tax code states that the mortgage interest is tax-deductible in its year paid, subject to limitations.

By making the January 2012 mortgage payment in December 2011, therefore, homeowners who itemize their on their tax returns can apply their January mortgage payment's interest portion to their 2011's tax returns.

The alternative is to pay the mortgage on schedule, and wait for April 15, 2013 to claim the credit.

If you choose to pre-pay your mortgage and typically send your payment via USPS, give your check ample time to be delivered to your lender, and processed. Mail your check no later than Saturday, December 24.

For Anaheim Hills homeowners that pay electronically, the process is simpler. Edit your online bill pay program to have your mortgage payment post no later than Thursday, December 29.

Make note, however. Not all mortgage interest is eligible for tax-deductibility, and not all homeowners throughout the state of CA who pay mortgage interest should itemize said interest on their tax returns.

Before prepaying on your mortgage, ask your tax professional for advice.

Home Inventory Falls To 7 Months Nationwide; Buyer Demand Strong

noreply@blogger.com (Anonymous) — Thu, 22 Dec 2011 14:02:00 +0000

Home resales moved to a 10-month high in November, the latest in a series of strong showings from the housing sector.

According to the National Association of REALTORS®, November's Existing Home Sales rose to a seasonally-adjusted, annualized 4.42 million units nationwide -- a 4 percent climb from October 2011.

An "existing home" is a home that has been previously occupied and cannot be categorized as new construction.

Home buyers and sellers throughout Anaheim Hills should take note of November's numbers because -- behind the headlines -- there's a series of statistics that foretell higher home prices ahead.

First, the total number of homes for sale nationwide dipped to 2.58 million, an 18% reduction from November 2010 and represents the fewest number of homes for sale since February 2007.

At the current sales pace, the complete home resale inventory would be sold in 7.0 months.

And, second, the real estate trade group reports that 33% of all homes under contract "failed" for some reason last month.

Contract failures can occur because of mortgage denials in underwriting; home inspection issues; and homes appraising for less than their respective purchase prices.

In other words, despite a reduction in the number of homes for sale, and a rash of failed contracts, Existing Home Sales volume is still on the rise.

Broken-down by buyer-type, here's to whom home sellers were selling in November :

First-time buyers : 35% of home resales, up from 34% in October 2011
Repeat buyers : 46% of home resales, down from 48% in October 2011
Investor buyers : 19% of home resales, up from 18% in October 2011

Given high demand for home resales and shrinking home supplies, we should expect that home prices will rise through December 2011 and into early-2012, at least. Recent Housing Starts data supports this notion.

Thankfully, mortgage rates remain low. Low mortgage rates help keep homes affordable.

Home Builders Experiencing Heavy Foot Traffic And Higher Sales Volume

noreply@blogger.com (Anonymous) — Tue, 20 Dec 2011 14:06:00 +0000

In another good sign for the housing market, today's home builders believe that the housing market has turned a corner.

For the third straight month, the Housing Market Index -- a home builder confidence survey from the National Association of Homebuilders -- reported strong monthly gains.

December's Housing Market Index climbed 2 points to 21 in December after a downward revision to last month's results. The index is now up seven points since September 2011, and sits at a 19-month high.

When home builder confidence reads 50 or better, it reflects favorable conditions in the single-family new home market. Readings below 50 reflect unfavorable conditions.

The Housing Market Index has not crossed 50 since April 2006.

The HMI itself is actually a composite reading; the result of three related home builder surveys. The National Association of Homebuilders asks its members about their current single-family home sales volume; their projected single-family home sales volume for the next 6 months; and their current buyer "foot traffic".

The results are compiled into the single Housing Market Index tally.

In December, builder survey responses showed strength across all 3 questions :

Current Single-Family Sales : 22 (+2 from November)
Projected Single-Family Sales : 26 (+1 from November)
Buyer Foot Traffic : 18 (+3 from November)

These results support the recent New Home Sales and Housing Starts data, both of which show an increase in single-family sales, and a decrease in new home housing supply.

When demand rises and supplies fall, home prices climb.

It's also noteworthy that the Housing Market Index put buyer foot traffic at newly-built homes at its highest level since May 2008. With even more buyers expected to enter the market, new home prices are expected to rise across Yorba Linda in 2012 -- especially in the face of shrinking home supplies.

For now, though, with home prices stable and mortgage rates low, buyers can grab "a deal". 60 days forward, though, may be too late.

The Spring Buying Season unofficially starts February 6, 2012.

Maximum FHA Loan Limits Restored To $729,750

noreply@blogger.com (Anonymous) — Wed, 14 Dec 2011 20:49:00 +0000

After a brief return to lower, pre-2009 levels, FHA loan limits have been restored. As signed into law last Friday, maximum FHA loan limits are -- once again -- as high as $729,750.
The move creates additional mortgage financing possibilities in more than 650 U.S. counties, and promises to increase the FHA's mortgage market share, which has grown from 6% in 2007 to roughly 30% today.
The change in FHA loan limits also marks the first time that FHA loan limits exceed those of conventional mortgage-backers Fannie Mae and Freddie Mac.
Conventional loans remain capped at a maximum of $625,500.
For home buyers in Anaheim Hills and nationwide, FHA-insured mortgage offer several advantages over comparable conventional loans, the most commonly cited of which is that FHA-insured loans require a down payment of just 3.5 percent.
FHA-insured mortgages carry other advantages, too, however.
First, FHA home loans are not subject to loan-level pricing adjustments (LLPA). This means that, all things equal, buyers and would-be refinancers with credit scores below 740; or, who live in multi-unit homes; or, who have high loan-to-values are not subject to additional loan fees as a conventional mortgage applicant might.
Second, after 6 months of on-time payments, FHA-backed homeowners are eligible for the FHA Streamline Refinance. The FHA Streamline Refinance is among the simplest loan products for which to qualify with no appraisal required. Even if you're "underwater" on your mortgage, you can still be streamline-eligible.
And, lastly, at least in today's market, FHA mortgage rates are below those of the conventional market.
The downside of FHA financing, however, is that all FHA mortgages require mortgage insurance and FHA mortgage rates are often higher versus a comparable conventional loan. This means that, although its mortgage rate may be lower, the payment for an FHA home loan may be higher as compared to a Fannie Mae mortgage with similar credit traits.
FHA loans aren't always optimal, but with higher FHA loan limits, expect the FHA's market share to increase.
Check your local FHA loan limit at the HUD website.

America's Best Places To Raise A Family, Listed By State

noreply@blogger.com (Anonymous) — Tue, 13 Dec 2011 14:06:00 +0000

BusinessWeek recently released its 2011 America's Best Place to Raise a Family rankings. College-town Blacksburg, Virginia took top honors, breaking a 2-year win streak for the Chicago, Illinois region.

In 2009, suburban Mount Prospect, Illinois placed first. Last year, it was Tinley Park, Illinois.

The BusinessWeek report employs data from real estate information firm Onboard Informatics to make its rankings, compiling data across categories such as education, crime, and jobs plus access to parks and affordable homes. All selections are limited by population; all selections are home to 50,000 residents or fewer. Median incomes are within 20 percent -- plus or minus -- of the state's median income levels.

BusinessWeek names one winner in each state. The winners in the 10 most populous states and their nearest "big city" are listed below

California : East San Gabriel (Los Angeles)
Texas : Wells Branch (Austin)
New York : Hampton Manor (Albany)
Florida : Niceville (Fort Walton Beach)
Illinois : Morton Grove (Chicago)
Pennsylvania : Cecil-Bishop (Pittsburgh)
Ohio : St. Henry (Dayton)
Michigan : Spring Arbor (Jackson)
Georgia : Hoschton (Atlanta)
North Carolina : Tryon (Spartanburg, SC)

The winners in all 50 states can be found on the BusinessWeek website.

Rankings like the BusinessWeek America's Best Place to Raise a Family can be useful for home buyers in Yorba Linda , but like everything in real estate, statistics do not apply to every home equally. Even within the "best towns", there are areas in which school systems are better, crime figures are lower, and amenities are more plentiful.

Therefore, before you make the decision to buy a home, talk with a real estate agent who has local market knowledge. It's the most effective means to get data that matters to you.

Reduce Long-Term Loan Costs With A 15-Year Fixed Rate Mortgage

noreply@blogger.com (Anonymous) — Fri, 09 Dec 2011 14:03:00 +0000

For as low as 30-year fixed rate mortgage rates are in CA today, 15-year fixed rate mortgage rates are even lower.

According to Freddie Mac's weekly mortgage rate survey, the average 15-year fixed rate mortgage rate is now 3.27% nationwide with an accompanying 0.8 discount points. 1 discount point is a closing cost equal to 1 percent of your loan size.

The current 15-year fixed rate reading is just one tick above the all-time, 15-year fixed rate mortgage low of 3.26% set in October 2011.

If you've ever thought of "going 15", it's a terrific time to talk to your lender.

The primary benefit of using a 15-year fixed rate mortgage as opposed to a 30-year fixed rate one is that a 15-year fixed rate mortgage dramatically cuts the long-term interest costs of your loan. The downside is that monthly payments are relatively large.

At today's mortgage rates, per $100,000 borrowed :

15-year fixed rate mortgage : $704 principal + interest monthly
30-year fixed rate mortgage : $477 principal + interest monthly

So, for homeowners opting for a 15-year fixed rate mortgage, the monthly principal + interest payments will be 48% higher as compared to a 30-year fixed rate mortgage of the same loan size. Long-term, however, because the 15-year fixed rate mortgage interest rate is lower and because it pays off in half the time of a 30-year loan, a homeowner will save $45,000 in interest costs per $100,000 borrowed.

$45,000 per $100,000 borrowed is a huge amount of savings. It's monies that can be used for college tuition, home improvement projects, retirement savings, or anything else.

That said, the 15-year fixed rate mortgage is not ideal for everyone.

Because it requires higher monthly payments, a 15-year fixed rate mortgage may add stress to your household budget. Furthermore, once you commit to a 15-year loan term with your lender, you can't revert back to a 30-year loan term without a refinance and refinances can be costly.

Therefore, be sure of yourself when selecting a 15-year fixed rate loan. The rewards are great, but the risks can be, too.

Origination News - Bank and Nonbank Loan Officers: 459,000 and Counting?

noreply@blogger.com (Anonymous) — Wed, 07 Dec 2011 00:40:00 +0000

Mortgage Origination News - Bank and Nonbank Loan Officers: 459,000 and Counting? e5254f6472794acd82775da26ce531b9

I have always been a bit of a skeptic myself, and Still Don't Believe the Reported numbers. I personally know dozens and dozens of folks no longer working in the mortgage origination space Anywhere, bank or non-bank. As the article points out, these stats also include processors and even janitors...........

Okay, so if the Banks have that many Loan Officers now in their employ, then why is it they're taking (according to more statistics!) up to 23 DAYs to Return a customers Initial Phone call?? Something doesn't make sense here does it?

If you'd like Help with Making Sense of all this Mortgage mumbo jumbo, give me a call 24/7.

I Promise Not to take 23 days to return your call! I can be reached at (800) 564-1500 or visit us on the web; http://www.homeloanshop.co/

Home

noreply@blogger.com (Anonymous) — Sat, 17 Sep 2011 15:24:00 +0000

Home e5254f6472794acd82775da26ce531b9

Foreclosures for sale: Big supply, low prices - May. 26, 2011

noreply@blogger.com (Anonymous) — Wed, 08 Jun 2011 22:50:00 +0000

Foreclosures for sale: Big supply, low prices - May. 26, 2011 e5254f6472794acd82775da26ce531b9

Pinnacle Mortgage and Realty Group Serving Orange County and Entire Golden State since 1986 Residential and Commercial Property and Loans (714) 921-0887 http://lowratesonline.net/ http://homeloanshop.co/

What is Identity Theft & How to Protects Yours

noreply@blogger.com (Anonymous) — Sun, 13 Mar 2011 12:53:00 +0000

What Is Identity Theft & How to Protect Yours

The following information is Reprinted From: Federal Trade Commission's Website and explains how an identity thief might gain access to and make use of your personal and confidential information.

Most Common Techniques a Thief uses to Steal your I.D. & Ways to Protect Yourself?

Despite your best efforts to manage the flow of your personal information or to keep it to yourself, skilled identity thieves may use a variety of methods to gain access to your data.

They get information from businesses or other institutions by: stealing records or information while they're on the job, bribing an employee who has access to these records, hacking these records, conning information out of employees
They may steal your mail, including bank and credit card statements, pre-approved credit card offers, new checks, and tax information.

They may rummage through your trash, the trash of businesses, or public trash dumps in a practice known as "dumpster diving."

They may get your credit reports by abusing their employer's authorized access to them or by posing as a landlord, employer, or someone else who may have a legal right to access your report.

They may steal your credit or debit card numbers by capturing the information in a data storage device through a practice known as "skimming." They may swipe your card for an actual purchase or attach the device to an ATM machine where you may enter or swipe your card.

They may steal your wallet or purse.

They may complete a "change of address form" to divert your mail to another location.

They may steal personal information they find in your home.

They may steal personal information from you through email or phone by posing as legitimate companies and claiming that you have a problem with your account. This practice is known as "phishing" online or pretexting by phone.

What are the effects of identity theft?
Once identity thieves have your personal information, they use it in a variety of ways.

They may call your credit card issuer to change the billing address on your credit card account. The imposter then runs up charges on your account. Because your bills are being sent to a different address, it may be some time before you realize there's a problem.

They may open new credit card accounts in your name. When they use the credit cards and don't pay the bills, the delinquent accounts are reported on your credit report.

They may establish phone or wireless service in your name.

They may open a bank account in your name and write bad checks on that account. It’s not uncommon for offenders to open multiple accounts in multiple places and write bad checks on each.

They may counterfeit checks or credit or debit cards or authorize electronic transfers in your name and drain your legitimate bank account.

They may file for bankruptcy under your name to avoid paying debts they've incurred under your name or to avoid eviction.

They may rent a house or apartment and sign up for utilities in your name.

They may buy a car by taking out an auto loan in your name.

They may get identification, such as a driver's license issued with their picture, in your name.

They may get a job or file fraudulent tax returns in your name.
They may give your name to the police during an arrest. If they don't show up for their court date, a warrant for arrest is issued in your name.

When should I give out my Social Security number?

Your employer and financial institutions will need your Social Security number for wage and tax reporting purposes. Other businesses may ask you for your Social Security number to do a credit check if you are applying for a loan, renting an apartment, or signing up for utilities. Sometimes, however, they simply want your Social Security number for general record keeping. If someone asks for your Social Security number, YOU ask;

Why do you need my Social Security number?
How will my Social Security number be used?
How do you protect my Social Security number from being stolen?
What will happen if I don't give you my Social Security number?

If you don't provide your Social Security number, some businesses may not provide you with the service or benefit you want. Getting satisfactory answers to these questions will help you decide whether you want to share your Social Security number with the business. The decision to share is yours .

I have a computer and use the Internet. What should I be concerned about?

You may be careful about locking your doors and windows and keeping your personal papers in a secure place. Depending on what you use your personal computer for, an identity thief may not need to set foot in your house to steal your personal information. You may store your Social Security number, financial records, tax returns, birth date, and bank account numbers on your computer.

These tips can help you keep your computer – and the personal information it stores – safe. Virus protection software should be updated regularly, and patches for your operating system and other software programs should be installed to protect against intrusions and infections that can lead to the compromise of your computer files or passwords.

Ideally, virus protection software should be set to automatically update each week. The Windows XP operating system also can be set to automatically check for patches and download them to your computer.

Do not open files sent to you by strangers or click on hyperlinks or download programs from people you don't know. Be careful about using file-sharing programs. Opening a file could expose your system to a computer virus or a program known as "spyware," which could capture your passwords or any other information as you type it into your keyboard.

Use a firewall program, especially if you use a high-speed internet connection like cable, DSL, or T-1 that leaves your computer connected to the internet 24 hours a day. The firewall program will allow you to stop uninvited access to your computer. Without it, hackers can take over your computer, access the personal information stored on it, or use it to commit other crimes. Use a secure browser – software that encrypts or scrambles information you send over the internet – to guard your online transactions. Be sure your browser has the most up-to-date encryption capabilities by using the latest version available from the manufacturer.

You can also download some browsers for free over the internet. When submitting information, look for the "lock" icon on the browser's status bar to be sure your information is secure during transmission.

Try not to store financial information on your laptop unless absolutely necessary. If you do, use a strong password with a combination of letters (upper and lower case), numbers, and symbols.

A good way to create a strong password is to think of a memorable phrase and use the first letter of each word as your password, converting some letters into numbers that resemble letters. For example, "I love Felix; he's a good cat," would become 1LFHA6c.

Don't use an automatic login feature that saves your username and password, and always log off when you're finished. That way, if your laptop is stolen, it's harder for a thief to access your personal information. Look for website privacy policies. They should answer questions about maintaining accuracy, access, security, and control of personal information collected by the site, how the information will be used, and whether it will be provided to third parties.

If you don't see a privacy policy or if you can't understand it, consider doing business elsewhere.

Are Late Payments as Bad as Foreclosure on my FICO Score?

noreply@blogger.com (Anonymous) — Thu, 02 Sep 2010 03:12:00 +0000

A 90 day late payment

has the same negative effect as a Foreclosure!

What very few consumers are aware of is, that a 90 day late payment by itself has the same exact effect on a credit score as a foreclosure. Fair Isaac\'s classic fico model is designed to determine the liklihood of someone going 90 days late on a particular loan obligation over the next two years.

Once someone goes 90 days late, since that is the event the scoring model is trying to predict, anything beyond that is a moot point and will not cause an additional decrease in the score.

While it is true that a foreclosure does make a person more of a credit risk overall, the classic fico model is not telling you if they are a risk overall other than the risk they will pay 90 days late over the next two years.

Whether they are a risk to file a bankruptcy or whether they are a risk for defaulting 5 years down the road is not what the score is trying to predict.

If you would like a no obligation phone consultation to discuss your particular credit issues and how to raise your scores by 20, 50 or even 100 points, please call us Today at

(800) 564-1500

6 Things You Must Know BEFORE You Start Looking for a Home

noreply@blogger.com (Anonymous) — Sun, 16 May 2010 06:10:00 +0000

http://twitter.com/LowRatesOnline

Before you start looking for a home, you must get "Pre-Qualifed" for your loan; Banks, Credit Unions, and Mortgage Brokers are where you would go for consultation and application. They will take the loan app., process your supporting documentation and issue your pre-qual or pre-approval letter for the real estate agent presenting your offers to purchase the property.

How much Down Payment/Closing Costs will I need? In our Current Market, Down Payment requirements can vary depending on your credit score and debt ratios. Funds required for down payment PLUS closing costs can be anywhere from $1 dollar for VA Entitled Loans, FHA is still only 3.5% D.P. + an average of 1.5 to 3% for total Escrow Closing Costs (Seller may opt to pay up to 3% of buyers C.C.'s)
What about Government Grants for Down Payment Assistance you ask? The State of CA has recently rolled out thru the Federal Government; other D.P. Assistance Programs to aid the low-income owner occupied home buyers in the Golden State.
There are several Government Programs that are effective to assit certain buyers with down payment. Some Cities even offer Grant Money. Also, another program worth looking into is the calHFA; or California Housing Finance Agency. Properties that meet their specified criteria for down payment assistance can ease the amount of upfront monies a buyer would need to close escrow. Please talk with one of our knowlegable Loan Counselors - we would be happy to explain the programs and options to you!

Middle Credit Scores from the 3 credit bureaus plays an increasingly important role in qualifying for a mortgage in today's housing climate and economy! If you have marginal (around mid 600's) or bad credit, consult a Pinnacle Loan Counselor. You may be able to qualify for an FHA loan program or speak with a Pinnacle Loan Counselor who may recommend an inexpensive, low cost and effective way to raise your scores in a relative short period of time. It's always best to Start Early - checking your credit scores and updating any erroneously reported misinformation that could be dragging down your scores otherwise hindering your ability to acquire the most optimum interest rate.
Should you select a mortgage with a Fixed or Adjustable rate? The answer to this question is really quite simple; How Long do you plan on owning the property? And where interest rates appear to be trending is a secondary concern to making this decision. If rates are low and stable for the time being, you might want to consider a 5/1 adjustable rate loan that has an initial fixed term of 5 years, then subsequent years it can adjust up or down depending on where rates are at. But if you are in the majority and figure on being in your home at least for next 7 years, a low fixed rate might be the best way to go.
What is M.I. and will I have to pay this? First off, M.I. Protects the Lenders Interst in your home, and is not, what is often misconstrued, to be protection for the home owner in case of illness or job loss, etc. M.I. is a Loan Requirent for loans with Less than 20% Down Payment and stays on the loan until the value of the home and/or the loan balance decreases to 79.9% or under the current value of the home.

Stay tuned by Subscribing to this Blog for upcoming additional tips and info for First Time Buyers or Move-up Buyers looking to become Better Informed about the Home Buying Process.

And Please do Comment on what you like or dislike about my blog, or ideas and suggestions for future blog postings that you'd like to see and learn more about regarding mortgage and real estate tips, info and current trends in the market! Please Opt-In to my Blog , and Please do Comment on likes/dislikes, ways to improve it?

If you have anything that requires a more expeditious response, I can be reached at (714) 595-0400

Thank you,

Tom Purcell, CA DRE Broker #00868646

Pinnacle Mortgage & Realty Group

Anaheim Hills CA

Residential/Commercial Property

www.LowMortgageRatesOnline.com

(714) 921-0887 Off.

(714) 595-0400 Cell