Will your Chantilly or Northern Virginia home go up in value this year? Who knows, but there has been some good news recently, along with the reality of foreclosures.

Housing has been rough since at least 2007, with home values down nearly 20% nationwide. Don’t forget though that our Northern Virginia housing situation has been far better than most areas of the country.

Obviously, low mortgage rates are good for Chantilly area home buyers.  Low rates plus low prices has led home affordability to an all-time high. As you’ll hear in this 4-minute interview with NBC’s The Today Show, carrying a mortgage now costs about 25% less per month as compared to just 3 years ago.

A few other noteworthy points:

• There are more buyers out looking for homes today, which leads to more sales
• The housing market is expected to get gradually better, month-by-month, in 2012.
• There are still lots of foreclosures, but at least they are working their way through the system.

With low housing inventory, Northern Virginia buyers may find their best “deals” today — before the Spring Buying Season begins in February.

Of course, remember that each area has its own dynamics.  Cities and neighborhoods have differences, and I am here to help you with the particulars of our area.

My team and I are always here for you.  Let me know how I can help you!

Consumers are doing lots of home improvement projects with about $110 billion in total volume this quarter.

Overall, these projects are not creating a lot of added home equity value.  You may still have great reasons to do a project, but it does not hurt to look at these stats before doing so.

Remodeling Magazine reports in their Cost vs Value Report 2011-2012, that for each home improvement dollar spent in 2012, homeowners can expect to recoup just 58 cents in home equity.

This is way down from 2005, when the cost-to-value ratio was 87 percent.

It pays to consider which projects will help your home equity.

Remodeling Magazine’s “Mid-Range Project” list :

• Steel Entry Door Replacement : Cost, $1,238; Recoup, 73.0%
• Attic Bedroom : Cost, $50,184; Recoup, 72.5%
• Minor Kitchen Remodel : Cost, $19,588; Recoup, 72.1%
• Garage Door Replacement : Cost, $1,512; Recoup, 71.9%
• Wood Deck Addition : Cost, $10,350; Recoup 70.1%

Projects which have a relatively low cost-to-value ratio include the following.  Consider them if they have a high personal value, but not necessarily for their home equity value:

• Home Office Remodel : Cost, $27,963; Recoup, 42.9%
• Sunroom Addition : Cost, $34,133; Recoup, 45.9%
• Backup Power Generator : Cost, $14,760; Recoup, 47.5%
• Bathroom Addition : Cost, $140,096512; Recoup, 51.0%
• Fiberglass Entry Door Replacement : Cost, $3,536; Recoup 56.3%

Projects that include the replacement of doors, siding and windows occupy the list’s first 6 slots in the cost-to-value ratio.

As always, if you live in the Northern Virginia area or are planning a move to this area, we are here to help you learn what is available in both the new and resale home market.  Let us know how we can help!

You can see the complete Cost vs Value report online.

Further info on the HARP program guidelines.

You may benefit from checking out this program.

Tuesday, Fannie Mae and Freddie Mac communicated new lender instructions for the government’s revamped HARP program.  This may trigger loads of refinancing activity, so The Kathy O’Neal Team wanted to share this information.

You may already know that HARP stands for Home Affordable Refinance Program. The new changes are intended to give “underwater homeowners” an opportunity to refinance at today’s low mortgage rates.

Since the program’s launch two years ago, it has helped fewer than 900,000 homeowners.

The new and improved version may reach many more.  We’ll see.

There are 4 primary criteria to apply for HARP:

1. The existing mortgage must be guaranteed by Fannie Mae or by Freddie Mac
2. The existing mortgage must have been securitized by Fannie Mae or Freddie Mac prior to June 1, 2009
3. The mortgage payment history must be perfect going back 6 months
4. The mortgage payment history may not include more than one 30-day late payment going back 12 months

For HARP applicants, loan-level pricing adjustments are waived in full for loans with terms of 20 years or fewer; and maxed at 0.75 for loans with terms in excess of 20 years.

This should significantly lower mortgages rates for HARP applicants — especially those with credit scores below 740.

An additional benefit:  HARP applicants are exempted from the standard waiting period following a bankruptcy or foreclosure, which is 4 years and 7 years, respectively.

These two benefits should greatly widen the net of potential HARP participants.

But there are a few provisions which exclude some potential applicants:

1. The “unlimited LTV” feature only applies to fixed rate loans or 30 years or fewer.  ARMs are capped at 105% loan-to-value.
2. Applicants must be “requalified” if the proposed mortgage payment exceeds the current payment by 20%.
3. Applicants must benefit from either a lower payment, or a “more stable” product to qualify

Remember also that HARP is a one time deal.  It can’t be used twice.

Fannie Mae and Freddie Mac will have minor variations, so work with your loan officer on these eligibility standards.

And if you need help getting a good lender I can provide a few referrals, as well as help you in any aspect of your home buying or selling goals.  Email or call us anytime!  I also invite you to view our Testimonial Video.

Recently the Federal Home Finance Agency announced significant changes to its Home Affordable Refinance Program Monday. The HARP (Home Affordable Refinance Program) was initiated to help “underwater homeowners” get their home refinanced.

There are over a million homeowners nationwide – and many home owners here in Chantilly and the Northern Virginia area -  who might be helped by these changes.  Given the historically low interest rates, it is wise to know about this program.

There are four basic qualifying criteria:

1. Your current home loan must be guaranteed by Fannie Mae or Freddie Mac
2. Your home must be a 1- to 4-unit property
3. You must have a perfect mortgage payment history going back 6 months
4. You may not have had more than one 30-day late payment on your mortgage going back 12 months

One of really big features of the updated program is that the government is waiving loan-to-value requirements on HARP loans. Homeowners’ participation is no longer restricted by their home’s appraised value. Actually, the new HARP doesn’t even require an appraisal, in most situations.

Under the new HARP program guidelines, an underwater mortgages can be refinanced without LTV limit or penalty.

According to the government’s official press release, lenders are expected to be offering the program as of December 1, 2011.

If you want to check it out, start by seeing if your loan is backed by Freddie or Fannie. Here is where you can go for that:

• Fannie Mae loan lookup : http://www.fanniemae.com/loanlookup/
• Freddie Mac loan lookup : https://ww3.freddiemac.com/corporate/

You can also call your lender directly.

If being underwater is not an issue, but you are looking for a few reputable lending sources, of course, let me know and I will be glad to provide you with a few referrals.

If you are home buying or home selling in the Northern Virginia area, please know I am always here for you!

Many Chantilly and Northern Virginia home owners, like those elsewhere, have wondered about refinancing their home, given the amazingly low prevailing interest rates.

If this has been on your mind, take a few moments to view this Today Show video.  Even though this was aired in September, I think you will most of the info current.

One of the key questions of course, is whether the costs of doing a refi outweigh the benefits.

Key points include :

• Lower rates mean higher costs. At least check out the slightly higher-rate option from your bank.
• Falling home values may make it harder to refinance in the future. Your window of opportunity may be now.
• If you have had a 30-year loan for many years, consider a 15-year mortgage to avoid “resetting” your term.

You will find lots of quality information in this short video.

If you need a quick reading on the current market value of your Northern Virginia home, or if you want a refeerral to a few quality loan officers, please let me know.   We are always here for you!

If so, come visit our Open House in Centreville VA this Sunday, September 25, 2011 from 1 PM to 4 PM.

Open House this Sunday, Sept 25, 2011 - 2 PM to 4 PM - 5464 Braddock Ridge Drive

The home is located at 5464 Braddock Ridge Drive in Centreville, Virginia (20120).

This is a really nice home inside and out.  Lots of new upgrades and a big, big yard with an expansive deck are among the many exceptional features of this Centreville property.

Take a moment to get more details and take a Visual Tour here, and do come by for the Open House this Sunday, September 25 (2 PM to 4 PM).  Please don’t hesitate to contact me with any questions.

Open House - Sunday, Sept 25, 2011 - 1 PM to 4 PM

This home is in superb condition and is sharp in all details.  If you are in process or even just starting your home search, this is one that is worth an “in person” look.  And it is in Pleasant Valley, a terrific community of homes very well located close to the Route 28 corridor.

You can get more details and take a Visual Tour here, and if this home looks interesting to you, do come by for the Open House this Sunday, September 25 (1 PM to 4 PM).  And feel free to contact me with any questions.

Chantilly and Northern Virginia area home owners, as well as home buyers and sellers, know that interest rates are low.

But be aware that getting a home loan or doing a refinance is only one way to take advantage of these historic lows.

Take a look at this short video from NBC’s The Today Show to hear about a half-dozen ways to benefit, such as:

• A quick way to refi a car loan
• Balance transfers between credit cards with teaser rates lasting up to 20 months
• Move some savings to an “online” bank where savings rates are higher

The Fed has asserted that the Fed Funds Rate will be held near 0.000% probably until mid-2013.  Why not use it to your advantage if you can.

Also, a reminder that MARKET SNAPSHOT will give you prices of homes sold in your Northern Virginia neighborhood.

And if you are considering buying or selling real estate, we invite you to hear what others are saying about The Kathy O’Neal Team.

According to the BuildFax Remodeling Index, people are doing lots of remodelling projects.

They report that for the 19th straight month, their May index rose.

If you are doing projects on your own, do be aware of safety.  Many preventable accidents happen because basic safety precautions are not taken.  Some of these accidents can be very serious…like falling off a ladder.

Check out this 5-minute video from NBC’s The Today Show.  Being aware of the basic precautions mentioned could save you a lot of trouble.

The insights include:

• Use “expandable” earplugs to prevent hearing loss from power tools.
• Don’t wear sneakers or sandals. Wear construction boots.
• Never stand on the top 2 steps of a ladder.

Also, don’t forget the safety glasses.  Eye problems are the number one injury as reported by home remodelers, and it is important to realize they can happen anytime.

Here is the video from the NBC website.

As always, if you need a referral for professional help to do a project, contact me and I will provide a few names.

Whether you are buying or selling, or just considering either or both, we are always here for you!

Whenever I notice some positive news for Northern Virginia area home buyers and sellers, I like to share it.

Here is an interesting fact that you may not have heard about.

On a seasonally-adjusted basis, the Pending Home Sales Index rose 2 percent last month to reach its highest level since March.

A “pending home sale” is a home under contract to sell, but not yet closed.

The forward-looking Pending Home Sales Index is up 11 percent from its low of the year.

Of course,these stats are not necessarily useful for Chantilly area home buyers.  To get more locally helpful info the Pending Home Sales Index report includes a region-by-region breakdown.

Between May and June 2011, the results were uneven:

• Northeast Region: -0.4%
• Midwest Region : -3.7%
• South Region : +4.4%
• West Region : +6.4%

Even the regional data does not tell the full story.

For example, the West Region showed big gains in June, but it is comprised of multiple states containing thousands of cities and towns.  Some areas did well, others did not.

It is the highly local data that matters.

And for that, we are always a resource to provide you with a clear sense of what is going on in the areas of Northern Virgina where you have an interest.  Let us know how we can help.  And by the way, we invite you to use our free MARKET SNAPSHOT tool to get a fix on actual selling prices of homes in your Northern Virginia neighborhood of interest.