Archive for May, 2009
HERE IS AN ENERGY AND MONEY SAVER YOU MAY BE MISSING
May 8th, 2009 categories: Home Life
Chantilly and Northern Virginia home owners have come to expect the hot summers. When May rolls around we start moving into air conditioner weather.
We are all conscious of energy costs these days, not to mention energy conservation. And one easy way to help with both is to take advantage of something that you may have taken for granted: your ceiling fan.
This short Weather Channel video demonstrates how that simple fan can cool down a room by as much as 6 degrees, while it brings your energy costs down as well.
The thing you may have over-looked is making sure the fan blades on your unit are moving the air in the right direction.
- HEAT, blades should rotate CLOCKWISE
- COOL, blades should rotate COUNTER-CLOCKWISE
It is easy, energy saving, money saving, and makes your life more comfortable. That’s a winning combination.
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HONORING THE NATIONAL DAY OF PRAYER
May 7th, 2009 categories: Uncategorized
We are pleased to recognize today as commemorating a National Day of Prayer.
Prayer is a core foundation of most faith traditions. And if you will permit us a very personal reference, it is a vital part of my family’s life.
Our business approach derives directly from our faith. We see the trust people place in us as a sacred responsibility.
So we are happy to see today as a recognition of how critical prayer is for people of faith. Our prayers are with this nation, and for all of the people in the many parts of the world where there is great need.
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THIN ICE – WHY WE NEEDED HASP (In a Nutshell)
May 7th, 2009 categories: Mortgage & Finance
More than ever, I have been taking calls from people desperate for refinances, eager to get out of adjustable rate high interest loans that are draining their pocket books. For many borrowers out there, there is either one complication or another. Today, two problems create the biggest roadblocks. First, there is not enough equity in the borrower’s property, and second, the borrower does not have enough documentable income to support qualification on a new loan. These barriers to entry to the world of refinancing can turn out to be some very thin ice between borrower and the world of foreclosure below.
Years ago, sufficient equity was not a big issue. During the “refi boom” experienced in the earlier part of this decade, housing prices were on the rise. The higher the home value, the lower the loan-to-value (LTV) and the lower the LTV, the easier it is to refinance, particularly into lower rates. Banks take on less risk if the borrower owns a larger percentage of his or her home, so they are willing to offer lower rates and qualify people more easily. Today, that is not the case. With houses having been on the decline, many people today owe more than their house is worth, so there is very little incentive for banks to grant a refinance in this dim situation.
Regarding the second problem, some who may have the equity to refinance face a totally different issue. As credit 
has tightened up, so too have lending practices. Years ago, one could basically get a loan if they knew how to sign their name. Not that I encouraged it, but “stated income/stated asset” (SISA) loans were a very viable option. This type of loan was very popular with self-employed borrowers who had a difficult time proving their income on paper. For these people, all that was needed was a dollar amount for what they said they made and a signature to go with it. Unfortunately, adjustable rate mortgages, a very popular loan type over the past ten years, do begin adjusting at some point. As interest rates have started to rise, the self employed have found themselves up against a wall. SISA loans no longer exist. If you were making your payments on time, but needed (or wanted) to refinance, you didn’t have much of a choice, until now.
To counter both of these issues, the Obama administration has passed the Home Affordability and Stability Plan (HASP). This plan seeks to keep people in their homes by counteracting the two big issues above. If you can demonstrate that you have made your payments on time (and passed a few other tests), you may be eligible to refinance under the HASP program. The program allows for refinancing up to 105% of the current value of the home without adding mortgage insurance, if you weren’t already paying it. Secondly, if you stay with the same lender, you may refinance without any income or asset documentation. This is a lifesaver for the self employed. Rates are competitive and the process is pretty simple.
There are many critics of the HASP program who say that people should not have gotten themselves into this situation in the first place and we should not use government to create the cure. If I may offer my two cents: This program is targeting those who have made every honest effort to pay on time and have succeeded in doing so. To not allow them the opportunity to refinance now when rates are low is certainly to cast them toward one inevitable end. In five years I have not had a foreclosure and I take pride in the fact that I can now help many more avoid it. I sleep better knowing it.
Note: There is a secondary portion of the HASP program not addressed in this entry.
[Robert A, Martinson is a Loan Officer at Bank of America. Rob is like all of our Contributors: easy to talk to, and always happy to hear from our blog visitors! You can contact him at Robert.a.martinson@bankofamerica.com]
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SLOWING DECLINE IN HOME PRICES FOR FEBRUARY. SIGN OF THINGS TO COME?
May 4th, 2009 categories: Buyer Strategies, Seller Strategies
Home owners and home buyers in Northern Virginia, as in most other parts of the US, are wondering when we will see the first signs that falling home values have tapered off.
You have probably heard the Case-Shiller Index mentioned in reports about statistical trends in national home prices. On a monthly basis, home prices from 20 urban areas are measured and reported.
Most statistical reports are not perfect, and the Case-Shiller Index is no exception. It does not include every state (currently I think it includes about 37 US states), and it tends to give more statistical weight to higher priced rather than lower priced properties. But it is definitely still helpful in providing cues on what is going on from a national perspective.
When you combine Case-Schiller with the government stats, in particular the House Price Index, you get a better picture. Some would argue that the Case-Schiller Index tends to put housing stats in a more negative light.
That’s OK. One is a good balance for the other.
The February’s Case-Shiller Index is a good example. It reported values falling in 20 of it cities, but not at the same velocity as previously.
It might not be cause to celebrate, but even modestly good news is note worthy in this environment. Remember too that this measure has a 2-month delay factor built in. And, the Spring season usually sees a rise in home buying that has not yet been accounted for. Add to that the government programs such as the $8K home buyers tax break.
Let’s keep a close eye on what March brings. Similar patterns for March would be even more encouraging.
We’ll keep you posted.
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VERY FINE RAMBLER IN CHANTILLY, VIRGINIA – OPEN SUNDAY, MAY 3, 1 PM to 4PM
May 1st, 2009 categories: Featured Listings
If your home search includes the Chantilly, Virginia area, please be aware of this exceptionally sharp Rambler in Pleasaant Valley.
We invite you to come by to an Open House this Sunday, May 3 , from 1 PM to 4 PM.
The property’s location: 15201 General Stevens Court – Chantilly, VA 20151
15201 GENERAL STEVENS COURT - CHANTILLY, VA 20151
This is an exceptional house in a very good location. Pleasant Valley is just off Route 50 at Pleasant Valley Road. From Pleasant Valley Road turn on to Cub Run Road and proceed to General Stevens Court.
There are not a lot of Rambler style homes in the area, and this is a very fine representation of the advantages of this design. Lots and lots of room with a very open and cheerful first level and then…nice surprise….an extremely well-designed lower level. And the whole package is “neat and spotless.”
You can take an immediate Visual Tour and if this home looks interesting to you, let me know and I will get you whatever information you need.
You can arrange a tour online as well.
Price: $385,000
MLS#: FX7030790
More information: please click here and you will see the property on our Featured Listings page.
If I can answer any questions, please Contact Us.
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