The Obama administration has opened a dialogue with major lenders, economists, and government officials over the possibility of extending a financial lifeline to home owners who no longer can afford their mortgages because of job losses.
Possible strategies range from encouraging loan servicers to allow unemployed borrowers to skip some payments to providing grants or loans to temporarily cover mortgage obligations for home owners who become unemployed.
The talks have drawn praise from some real estate groups and other interests, who say that without aid to this subset of homeowners, the housing recovery could lose momentum.
Source: USA Today, Stephanie Armour (09/18/09)
Thursday, September 24, 2009
Wednesday, September 23, 2009
How Does Inflation Impact Interest Rates?
If you have seen the news lately, you know that inflation is a very serious issue that will likely be on the rise as the year proceeds.
But What Does This Really Mean to You?
The bottom line is that as inflation increases, home loan rates will rise too. That is because lenders know that a rise in inflation actually diminishes the value of the money they receive over the life of a loan, as the money they receive for payment simply will not go as far. So when lenders see changes in inflation or even anticipate a rise, they increase their interest rates to make up for the loss in future buying power that will happen as a result of inflation.
What Should You Do?
Work with a home loan professional who pays close attention to what is going on with inflation–not only with the reports that come out, but also with the concerns that legislators and lenders express. After all, lenders may raise rates to protect their money as soon as they feel the tide turning.
More importantly, if you or any of your family, friends, neighbors or co-workers have been considering a purchase or refinance, this is a great time to act because home loan rates could be on the rise.
Information Provided by Toby Wonder
Mortgage Consultant
Office: 425-274-9524
Cell: 206-910-4766
License #: 510-LO-32290
Tuesday, September 22, 2009
70 DAYS and counting!!! -- The Countdown is On....
The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
The income limit: for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The phase-out range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
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This information provided by Robert Wolverton with Mortgage Advisory Group
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If you are a buyer and would like to get pre-qualified contact Robert Wolverton - 425.418.3233 www.robertwolverton.com
"I can close most transactions in 10 business days when needed" - Robert
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
The income limit: for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The phase-out range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
-----
This information provided by Robert Wolverton with Mortgage Advisory Group
-----
If you are a buyer and would like to get pre-qualified contact Robert Wolverton - 425.418.3233 www.robertwolverton.com
"I can close most transactions in 10 business days when needed" - Robert
Thursday, September 10, 2009
Pricey areas see big growth in home sales
August home-sales figures show two higher-priced King County neighborhoods saw the biggest increases in sales.
By Eric Pryne, Seattle Times business reporter
King County home sales continued their summer surge in August. And the latest numbers suggest the buyers aren't all cash-starved first-timers.
Buyers closed on 5 percent more houses last month than in August 2008, the Northwest Multiple Listing Service reported Friday. It was the third consecutive monthly year-over-year increase, a bump many attribute to the new $8,000 federal tax credit for first-time buyers.
But the neighborhood that saw the biggest jump in sales in August was West Bellevue/Medina, far beyond the means of most folks making their first forays into homeownership.
The runner-up for the month, Queen Anne/Magnolia, also is no mecca for real-estate rookies.
Brokers who work in those two neighborhoods say people with money, who held back when the economy was on the brink, are starting to buy houses again.
"Americans forget very quickly," said Sam Konswa, owner of Queen Anne Real Estate. "The confidence level has just gone crazy on the up side."
Single-family home closings in Queen Anne and Magnolia were up 74 percent in August from the same month in 2008, from 31 to 54, the listing service said. In West Bellevue/Medina — the priciest of the 30 areas into which the service divides the county — the increase was a whopping 169 percent, from 13 to 35.
Together, the two high-end areas accounted for more than half the countywide increase.
Pending sales — offers sellers have accepted that haven't yet closed — also were up both in those neighborhoods and countywide for the fifth consecutive month.
But the median price of a King County house that closed in August was $375,000, down 11.6 percent year over year.
Median fluctuated
The median has fluctuated between $364,000 and $395,000 since January. Some real-estate professionals say it could drop further as banks put more foreclosed homes on the market.
In Queen Anne and Magnolia, the median price of a house that sold in August was $573,000 — the highest in Seattle — but down from $599,000 a year earlier. In West Bellevue and Medina the drop was more dramatic, from $1.6 million to $915,000, the listing service said.
Lower prices are one reason buyers are returning to the luxury-home market, said Ron Sparks, managing vice president of Coldwell Banker Bain, whose firm lists many high-priced homes.
"The million-and-up market has really dramatically improved in the last 60 to 90 days," he said.
Fewer sellers
Prospective buyers in that price range aren't as concerned about job security as they were earlier this year, Sparks said. Their stock portfolios have bounced back from the depths of March. And it's easier for them to get financing at a low interest rate now.
Inventory in West Bellevue/Medina has dropped from a five-year supply early this year to a 10-month supply now, Sparks said.
On Queen Anne, Konswa said the market has an overabundance of buyers and not enough sellers. His small firm had 26 listings in January, he said; now it has just three.
"I am now soliciting sellers for the first time," Konswa said. "Every time I get a call, it's 'I want to buy a house.' "
Some buyers are finally taking the plunge after looking for more than a year, he said. Others are investing some of their recent stock-market gains in real estate.
Countywide, single-family home inventory — the number of active listings — was down more than 20 percent in August from the same month last year.
King County condos didn't fare as well as single-family homes in August. Buyers closed on 11.4 percent fewer units last month than in August 2008, the broker-owned listing service said. The median price, $252,250, was down 5.9 percent.
In Snohomish County, the median price of a house that sold in August was $299,950, down 11.8 percent year over year.
Closed sales were up 8.1 percent countywide — but in Southeast Snohomish County, the priciest area, the increase topped 30 percent.
By Eric Pryne, Seattle Times business reporter
King County home sales continued their summer surge in August. And the latest numbers suggest the buyers aren't all cash-starved first-timers.
Buyers closed on 5 percent more houses last month than in August 2008, the Northwest Multiple Listing Service reported Friday. It was the third consecutive monthly year-over-year increase, a bump many attribute to the new $8,000 federal tax credit for first-time buyers.
But the neighborhood that saw the biggest jump in sales in August was West Bellevue/Medina, far beyond the means of most folks making their first forays into homeownership.
The runner-up for the month, Queen Anne/Magnolia, also is no mecca for real-estate rookies.
Brokers who work in those two neighborhoods say people with money, who held back when the economy was on the brink, are starting to buy houses again.
"Americans forget very quickly," said Sam Konswa, owner of Queen Anne Real Estate. "The confidence level has just gone crazy on the up side."
Single-family home closings in Queen Anne and Magnolia were up 74 percent in August from the same month in 2008, from 31 to 54, the listing service said. In West Bellevue/Medina — the priciest of the 30 areas into which the service divides the county — the increase was a whopping 169 percent, from 13 to 35.
Together, the two high-end areas accounted for more than half the countywide increase.
Pending sales — offers sellers have accepted that haven't yet closed — also were up both in those neighborhoods and countywide for the fifth consecutive month.
But the median price of a King County house that closed in August was $375,000, down 11.6 percent year over year.
Median fluctuated
The median has fluctuated between $364,000 and $395,000 since January. Some real-estate professionals say it could drop further as banks put more foreclosed homes on the market.
In Queen Anne and Magnolia, the median price of a house that sold in August was $573,000 — the highest in Seattle — but down from $599,000 a year earlier. In West Bellevue and Medina the drop was more dramatic, from $1.6 million to $915,000, the listing service said.
Lower prices are one reason buyers are returning to the luxury-home market, said Ron Sparks, managing vice president of Coldwell Banker Bain, whose firm lists many high-priced homes.
"The million-and-up market has really dramatically improved in the last 60 to 90 days," he said.
Fewer sellers
Prospective buyers in that price range aren't as concerned about job security as they were earlier this year, Sparks said. Their stock portfolios have bounced back from the depths of March. And it's easier for them to get financing at a low interest rate now.
Inventory in West Bellevue/Medina has dropped from a five-year supply early this year to a 10-month supply now, Sparks said.
On Queen Anne, Konswa said the market has an overabundance of buyers and not enough sellers. His small firm had 26 listings in January, he said; now it has just three.
"I am now soliciting sellers for the first time," Konswa said. "Every time I get a call, it's 'I want to buy a house.' "
Some buyers are finally taking the plunge after looking for more than a year, he said. Others are investing some of their recent stock-market gains in real estate.
Countywide, single-family home inventory — the number of active listings — was down more than 20 percent in August from the same month last year.
King County condos didn't fare as well as single-family homes in August. Buyers closed on 11.4 percent fewer units last month than in August 2008, the broker-owned listing service said. The median price, $252,250, was down 5.9 percent.
In Snohomish County, the median price of a house that sold in August was $299,950, down 11.8 percent year over year.
Closed sales were up 8.1 percent countywide — but in Southeast Snohomish County, the priciest area, the increase topped 30 percent.
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