Buyer Strategies
Mortgage rates at record lows
August 20th, 2010 categories: Buyer Strategies, Mortgage & Finance
Chantilly, Centreville, and Northern Virginia area home buyers had a pretty good week as far as mortgage interest rates are concerned.
This past week saw another new low for conforming rates. We are talking some of the lowest levels in mortgage rate history.
From Freddie Mac data we are seeing the 30-year fixed rate averaging 4.42% nationally with points cost of 0.7 points. Each point is equal to 1% of the loan amount.
Keep in mind that mortgage rates and mortgage fees generally move in the opposite direction. So you have to determine how the loan is structured and what your personal needs are to make sure you get something that fits your financing needs. Obviously, that is where a high quality loan professional comes in. Make sure you are working with someone who will puts your needs first. You have lots of options and variations in making mortgage financing choices.
Bottom line: periods of difficulty are accompanied by opportunity. If a home buy or a refinancing is right for you, remember that you are literally in a period of the lowest mortgage rates in history.
By the way, if you are a home seller in the Northern Virginia area, and are wondering what homes in your neighborhood have actually sold for, take advantage of MARKET SNAPSHOT.
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Chantilly, Centreville and Other Home Buyers: Be aware of these FHA changes
August 17th, 2010 categories: Buyer Strategies, Mortgage & Finance
Chantilly and Centreville home buyers will want to be aware that FHA is doing another round of modification on its mortgage insurance requirements.
The changes will impact the initial as well as annual premiums, starting with cases on October 4.
With a 30-year fixed-rate FHA mortgage, and at least 5 percent equity, the numbers look like this:
- Upfront MIP drops to 1.000% of the amount borrowed from 2.250%
- Annual MIP increases to 0.850% of the amount borrowed from 0.500%
For Chantilly and Centreville home buyers, as well as others using the program, this MIP change lowers the upfront cost of an FHA-insured mortgage, but increases the long-term costs.
FHA believes the change will help them by about 300 million in annual premiums. This should at least help to bring more financial stability to this much used program.
At the current rate, the FHA is on pace to back 1.7 million loans this year.
You will have to make the judgment as to whether getting your FHA case number before October 4 is best for you.
If you’re unsure of how the new FHA mortgage premiums will impact your mortgage, be sure to call or email your loan officer for help, or contact us if you need a few referrals for reliable professionals we have worked with.
By the way, initially the FHA said the implementation would be September 7. It was later amended to October 4, 2010.
If you have you sites set on taking advantage of the opportunities in the current market, either “normal” properties or those that are Short Sales or foreclosures, please know we are here to help you navigate your way to a terrific deal. Let us know how we can help!
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Mortgage Rate Shopping: Reactions to Fed’s June Meeting
July 18th, 2010 categories: Buyer Strategies, Mortgage & Finance, Seller Strategies
Mortgage rates hit all time lows this week, at least according to Freddie Mac.
And they may be staying low for awhile, but then again who can predict. A good run of economic news could send them creeping up.
Since the Fed released its June 2010 meeting highlights, mortgage rates have been dipping, owing to the tone and language of the report.
The Fed’s report is page upon page of stats, and other somewhat dense descriptions of the U.S. economy, along with discussion of the give and take of opinions among the Fed members.
Some highlights from this report include:
- An expectation of below normal growth through 2012
- A less positive picture on employment
- Credit conditions easing only very slowly
This is not great news overall, but it may bode well for mortgage rates.
If you have a re-fi or a home purchase on the horizon, consider getting that mortgage rate locked in now. Forget the stress of trying to second guess what is next.
And of course, if you are considering a move to the Northern Virginia area or a home sale or purchase in Northern Virginia, I invite you to take a quick minute and watch our video on how we serve our clients. It is an honest view on how we serve home buyers and sellers. Click on “Our Story: In the Voice of Our Clients.”
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Protecting financial identity and other information online
July 11th, 2010 categories: Buyer Strategies, Home Life, Seller Strategies
With the vast amount of online buying occurring these days (May 2010 Retail Sales at non-store retailers topped $29 billion) we thought this 5-minute video from NBC’s The Today Show would be useful to you.
There are plenty of predators out there, so it always pays to be aware of ways you can avoid fraud. Be careful with your online purchases. This video offers practical strategies and insights.
And of course, if you are home shopping, our Property Search and other tools are always easily accessible to you on our other website. If you are a home seller, you will especially benefit from Market Snapshot where you can get actual sold prices of homes in your Northern Virginia community.
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Home Resales Up As Tax Credit Comes To A Close
April 27th, 2010 categories: Buyer Strategies, Seller Strategies
National home sales were up in March with 7% more closings as compared to February.
Compare that to one year ago (March 09) and the volume was up 16 percent.
“Existing home sale” is the technical term for a home resale; a home previously inhabited by a person. It’s the opposite of a “new home sale” which is a sale of a newly-constructed home.
Data on Existing Homes Sales from the National Association of Realtors® also has some interesting things:
- Year-over-year sales are up for the 9th straight month
- 19 percent of all homes purchased came from investors
- 44 percent of all buyers were first-timers
There are still lots and lots of REOs and foreclosures out there. And if you have a buy or sell coming up, do use any of the many tools on our other website. If you are moving into the Northern Virginia area and need to know about prices and neighborhoods, let us know are we’ll be here to get you whatever relocation information would be helpful.
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High Real Estate Tax Assessment? Check this!
April 23rd, 2010 categories: Buyer Strategies, Seller Strategies
Ever wonder if your Chantilly or Northern Virginia area home is incorrectly assessed for your property taxes?
One trade group claims that is the case for 60% of U.S. households.
Take a few minutes to watch this 4-minute video from The Today Show if you have this concern.
Some estimates suggest that nearly half of the property owners that give this a try are successful in getting the value lowered.
Another thing that you will find helpful is Market Snapshot. It will give you a fast way to get the actual selling prices of homes in your community, if you live in the Northern Virgina area.
It is there for your immediate use, so feel free to take advantage of it.
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Buying Bank-Owned Homes in Northern Virginia
April 18th, 2010 categories: Buyer Strategies
What has been happening with foreclosure statistics? Well, filings went up 20% nationally during March as compared to February. That would be 13 straight months with total filings over 300,000.
Also of note is the fact that bank repossessions reached an all-time, quarterly record. During the first three months of 2010, banks repossessed more than 257,000 homes.
Remember that four states were responsible for a fair share of the foreclosure activity.
California, Florida, Arizona and Georgia accounted for more than half of bank repossessions. Together, these 4 states represent just 23 percent of the U.S. population.
The RealtyTrac report had other interesting stats to talk about:
- Last month, foreclosure activity was up in 40 out of 50 states
- Bank repossessions were up 9 percent compared to the same quarter last year
- Nevada topped the state foreclosure rate for the 13th quarter in a row
Overall – and remember this will vary a great deal from locale to locale – distressed homes are about 35 percent of the resale market.
There is value out there, but keep these points in mind:
- Buying bank-owned homes can take a whole lot longer… could be 120 days to close or more.
- Foreclosures aren’t always listed for sale publicly. Some properties are privately-held.
- Bank-owned homes are often sold “as is.” There may be defects and complications that render the homes mortgage-ineligible.
As we always counsel, know what you are doing and have seasoned help. And if you are in Northern Virginia or moving to the area, we are always here to answer your questions and help in any way possible with distressed as well as “normal sale” properties. Let us know how we can help!
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Freshen-up that Pre-Approval Letter
April 16th, 2010 categories: Buyer Strategies, Mortgage & Finance
Chantilly area home buyers, and those across Northern Virginia and elsewhere, are down to the wire as the federal home buyer tax credit nears its April 30 conclusion.
If you are trying to get that contract signed in time, and if your pre-qualification and/or pre-approval letter is more than 8 weeks old, get your lender to “re-pre-approve” you. Guidelines for mortgages have been dynamic so your original letter may not be workable at this time.
Long story short: over the past 6 or so months lenders have generally reduced risk tolerance, especially regarding things like maximum debt-to-income ratios, minimum allowable credit scores, and calculation of “assets in reserve”
As an example, it you are a condominiums or co-op buyer, property itself is coming under tougher scrutiny.
The mortgage application is now more of a complete package, to include more than just a qualifying income.
This “re pre-approval” could help you on several levels. It can uncover potential problems that could hurt more if discovered later rather than sooner.
Talk to your real estate and mortgage professional about this, and get their best counsel. And if you are starting fresh, we are always here for you. Let us know how we can help!
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Investment Properties and Tenants: Basic Tips
April 12th, 2010 categories: Buyer Strategies
Real estate investors in Chantilly and elsewhere are still able to take advantage of some significant opportunities. Arguably, things are a fair amount better now than they were when this NBC Today Show interview first ran in March 2009.
There are deals to be had, but there are risks as well, so you have to do your homework and know what moves to make. You can get hurt if you are not careful.
The simple but often overlooked guidelines offered in the video include:
- Buy in your own area
- Start small and build based on the knowledge you acquire
- When it comes to screening tenants pay attention to rent receipts
Do remember that the video is over a year old when you hear the stats. I think the general guidelines are as good as ever.
And if you are looking for a bank owned or other property as your first of next investment, we’d love to be of help. Contact us anytime!
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National Home Prices Lower Broadly, But One Size Does Not Fit All
April 2nd, 2010 categories: Buyer Strategies, Mortgage & Finance, Seller Strategies
If you are looking at home value stats – and I can understand if you would rather not think much about it given all that we have been through in the housing market in the last few years – but if you take a look now and then, you will note that home values fell again in January, according to the Federal Home Finance Agency’s Home Price Index. They reported values were down 0.6 percent, on average.
Here is something a little more specific:
- Values in the Mountain states rose 2.0%
- Values in the Pacific states were flat
- Values in the East North Central states fell 1.8%
This does not tell us much about local communities like Chantilly, South Riding, Centreville or the other communities here in the Western Fairfax and Loudoun area. But I do like to keep an eye on national stats, so we share them from time to time here at realestateinchantilly.com and hope you find them of interest. You can get actual sold prices in any local community by using Market Snapshot and that will give you about as localized information as you can get.
Of course, use any of our Property Search tools to see what is on the market in your area of interest as well.
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