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Mortgage originations slow in Las Vegas

Rising interest rates and price appreciation are slowing mortgage originations in Las Vegas, but a growing percentage of homeowners here are bucking the national trend by refinancing their homes and getting home equity lines of credit, according to a research firm. The interest rates surpassed 5 percent for the first time since the downturn of the market in October 2008, when rates were 6.5 percent, she said. Someone with a credit score in the mid-600s can get a rate of 5.375 percent with a 5 percent down payment. “People trying to buy homes are running into problems because it’s cutting into their affordability,” Gatling said. It is normal during this time of year for the market to slow down, but with rising rates and uncertainty in the political environment, you are going to see a lot of people on the sideline to watch what happens.” What will help Las Vegas originations is people relocating here for jobs who won’t be deterred from buying in a market that has lower home prices than where they currently live, Hulsey said. The total number of originations in Las Vegas during the second quarter was 20,802, a gain of 7 percent over the second quarter of 2017. That was driven by a gain in refinance, up 14 percent to 7,290, and home equity lines of credit, up 28 percent over the past year to 1,817. Both of those large gains in Las Vegas go against the national trend, Blomquist said. Blomquist attributes price appreciation in Las Vegas for the gains in refinancing and home equity lines of credit. Hulsey said they’re seeing more Nevada customers turn to home equity products for “home improvements, make large purchases or consolidate other debts.” All of the second-quarter totals in Las Vegas are well below the peak of the market, according to ATTOM.

The Real Estate Concierge

The best travel concierges are not only well-trained and well-connected professionals, but they are passionate and resourceful in fulfilling their clients’ needs. However, while your connection with a travel industry concierge typically concludes at checkout, the Real Estate Concierge looks to build a relationship with clients that lasts long after the real estate transaction is completed. Moving is said to be among the most stressful experiences in life, falling just behind death and divorce. While a Realtor will provide an assessment of your home’s value and market and list your home, he or she could leave you on your own when it comes to making decisions on repairs or upgrades to your property and finding trusted reliable and affordable vendors to do the necessary work. One of the most important services a concierge can offer is organizing a pre-inspection period of your home. This inspection is specifically for the seller to ensure there are no unwanted surprises when the buyer comes to inspect your house. When it comes to moving and storage, your concierge service can connect you with trusted vendors to coordinate cleaning up and clearing out. Real Estate Concierge professionals aim to help you present your home in its best possible light by coordinating with a valuable network of best-in-class service providers for general home inspection, roof inspection, staging inside and outside, general contracting, handiwork, and professional cleaning. A Real Estate Concierge goes the extra mile to connect buyers with a vetted list of service providers for superior assistance in preparing their homes for move-in. Concierge service goes beyond by acclimating buyers to their new community.

How a Stock Market Shakeup Affects Mortgages

Will the stock market shakeup affect mortgage rates and home sales? The Stock Market Shakeup and Home Sales Since then the market has continued to be turbulent. Then, President Trump's tariffs announcement made it drop 420 points on March 1. So how does the recent shakeup affect you if you’re thinking about buying or selling a home? When the yield on these notes increases, mortgage rates increase. On a $250,000 mortgage that’s $70 per month ($840 per year). But as interest rates rise, you could find yourself facing a monthly payment similar to what you would have with higher home prices and lower interest rates. It might be a good time to buy a home before rates increase any further, but only if you’re otherwise ready and only if you find a home you will be happy living in for years. Mortgage rates are still relatively low, making it a good time to take out a home loan. Short-term stock market shakeups should not be a factor in home buying or selling decisions.

The number of Utahns worried about housing costs is rising, particularly in Salt Lake...

The ranks of Utahns worried about affordable housing have grown dramatically since 2015 and conditions appear to be the worst for renters living in Salt Lake County, according to a new study. The nonprofit Utah Foundation reports that of 20 measures in its yearly Community Quality of Life Index, public perceptions on housing affordability have seen the largest declines in recent years. Statewide, about 12 percent of respondents to Utah Foundation surveys said their personal housing costs were not affordable this year. That number hovered between 7 percent and 8 percent in Utah, Weber and Davis counties, and at 6 percent for Utah’s rural counties. But in Salt Lake County — home to a third of the state’s population — that number was at 20 percent, or one in five residents. "That's a big difference," Utah Foundation President Peter Reichard said in an interview. "That indicates the sore spot is Salt Lake County." Housing advocates with Salt Lake City estimate a gap of at least 7,500 apartments affordable to low-income renters making $20,000 or less. And one in four renters told the Utah Foundation their housing was unaffordable, compared to 4 percent of homeowners. Foundation analysts said that contrast was probably due to a relative stability in costs in recent years for homeowners with fixed-rate mortgages, while rents have risen much faster than the cost of living, especially in Western states and those enjoying rapid economic growth, including Utah.

Stuck in the rent vs buy dilemma? Consider the local price-to-rent ratio

Price-to-rent answers affordability questions If you’re debating whether to rent or buy, look to your local price-to-rent ratio for guidance. Verify your new rate (Oct 29th, 2018) Where buying a home’s more affordable According to a new analysis from Rentberry, Trenton, New Jersey, boasts the nation’s lowest price-to-rent ratio, making it a slam-dunk for potential home buyers. The median property price in Trenton sits at $149,700, while the average monthly rent is $1,500 per month, making Trenton’s rent-to-price ratio 8. Daniela Andreevska, content director at real estate analytics firm Mash Visor, says anything in the 15 and under range means buying a home is more affordable than renting. “For renters and homebuyers, this means that it is relatively cheaper to buy a property in a certain market rather than to rent there,” Andreevska said. “So, if you have the necessary cash for a down payment and have figured out the rest of your financing in such a market, go ahead and buy a home.” Other cities with low price-to-rent ratios include Toledo, Dayton and Akron, Ohio; Syracuse, New York; Davenport, Iowa; Hartford, Connecticut, Cedar Rapids, Iowa; and Lansing, Michigan. “In most of these locations, the median property price does not exceed $250,000, which is below the level in many other top markets at the moment,” Andreevska said. Home prices in the area average $1.4 million, while the average monthly rent is $2,780. “Some of these cities are infamous for the high real estate prices there, such as San Francisco, New York, El Paso, and Irvine,” Andreevska said. In such expensive markets, it makes sense that renting is the better option or even the only affordable one.” Show Me Today's Rates (Oct 29th, 2018) Get today’s mortgage rates Looking to buy a home in one of the nations low price-to-rent markets?

What would happen to mortgage lending if interest rates doubled?

The four years between 1977 and 1981 witnessed the most dramatic increase in mortgage interest rates in the last 50 years. At its most extreme point in 1980, mortgage rates experienced a 50% year-over-year increase. Considering this historical context – is the housing market today as sensitive to mortgage rate increases as it was 40 years ago? How would a significant increase in the 30-year, fixed-rate mortgage rate impact the housing market today? In fact, using our Potential Home Sales model, we doubled the mortgage rate from its current value of about 4.4% to approximately 9% and the market potential for home sales declined from the current value of 6.1 million SAAR to 5.8 million SAAR. For the month of February, First American updated its proprietary Potential Home Sales model to show that: Potential existing-home sales decreased to a 6.1 million seasonally adjusted annualized rate (SAAR), a 0.02% month-over-month decrease. The market potential for existing-home sales increased by 4.3% compared with a year ago, a gain of 253,000 (SAAR) sales. Knowing how close the market is to a healthy level of activity can help consumers determine if it is a good time to buy or sell, and what might happen to the market in the future. Our potential home sales model measures what we believe a healthy market level of home sales should be based on the economic, demographic and housing market environments. About the Potential Home Sales Model Potential home sales measures existing-homes sales, which include single-family homes, townhomes, condominiums and co-ops on a seasonally adjusted annualized rate based on the historical relationship between existing-home sales and U.S. population demographic data, income and labor market conditions in the U.S. economy, price trends in the U.S. housing market, and conditions in the financial market.

Affordable Housing Bond Measures Pass in Three States

While most of the national attention in last night’s election coverage focused on prominent personalities in key states, a number of local referendums addressed issues related to housing affordability. Portland voters approved a $652.8 million bond measure to build more affordable housing. Two North Carolina cities also passed bond measures to finance affordable housing. The measure will finance the creation of new low-income housing and the rehabilitation of foreclosed, blighted or dilapidated single-family houses and apartments. Separately, voters in Chapel Hill approved a $10 million bond to build and preserve more than 700 affordable homes and apartments. Paying off the bond could add a penny to the town’s tax rate of 52.80 cents per $100 in property value. In Texas, Austin voters approved a $250 million proposal for affordable housing. “We’re excited for this historic bond to have passed with such an overwhelming margin,” said John Lawler, the Head of the Keep Austin Affordable coalition organized in support of the bond, in an interview with the Austin Statesman. “We see it as a mandate for the city of Austin to invest heavily in affordable housing.” However, one proposition that went down in defeat. Sponsored

This Is How Much You Need to Make to Afford the Average Home in...

There are a lot of things standing in the way for first-time homebuyers, including just figuring out what you're supposed to be doing and whether a house is even something you can afford. It's intimidating. Cost information website HowMuch.net has endeavored to illuminate a little bit of that dilemma. Here's the methodology. HowMuch.net pulled median home prices for every state from the real estate listing site Zillow. It then put that information through a mortgage calculator to determine monthly payments, with an interest rate varying from 4 to 5% depending on the state's market and a down payment of 10%. Of course, there are a lot of variables at play, including that a state is made up of a bunch of cities that can have wildly different markets. Here are the states with the highest income figures on the map. Hawaii: $153,520 for a $610,000 home 2. Washington, DC: $138,440 for a $549,000 home 3.

Rising real estate values power new interest in jumbo loans

2018 conforming loan limits jump by nearly $30,000 Property prices in many areas exceed so-called "conforming" loan limits -- the maximum mortgage amount allowed by Fannie Mae and Freddie Mac. The single-family limit is now $453,100 in most of the U.S. and as much as $679,650 in “high-cost” markets. How do you finance a home if the value is well above the conforming loan limits? Most mortgages today are QMs, and this is important for jumbo borrowers. Qualified jumbo mortgages: they're out there Under the rules, FHA, VA, and conforming loans are automatically Qualified Mortgages. With portfolio loans, lenders can originate jumbo QM mortgages, because there is no QM loan limit. Non-QM jumbo loans Not only can borrowers get jumbo QM loans; they can also get non-QM jumbo loans. For example, non-QM loans allow: Debt-to-income ratios higher than the 43 percent limit required for most QM mortgages Interest-only financing A 40-year term Millions of dollars Non-occupant co-borrowers Bank statement loan applications Alternatives for proving income Low credit scores Financing immediately after a foreclosure or bankruptcy Jumbo loans & taxes Under tax reform, the government has enacted new policies that will impact mortgage borrowers. The most important issues look like this: First, mortgage interest when you buy a home is deductible -- up to $750,000 for personal real estate. Jumbo mortgage rates The difference, or spread, between jumbo and conforming mortgage rates rises and falls, depending on markets.

My sister lent my father the down payment for his home and put her...

Dear Moneyist, My sister lent our father the down payment to buy his home in Florida. I want to make sure she at least gets her original investment back without going through probate or possibly having to fight for it with other relatives. Who pays the mortgage? It may be that your sister wants out. If your father couldn’t pay his half, your sister would have been responsible for the entire loan. Your father would need to (a) make a will and (b) clearly name the person who will inherit their share of this real estate. If they didn’t have a contract for the money your sister loaned him for the down payment, your father should make good on that in his will. Do you have questions about inheritance, tipping, weddings, family feuds, friends or any tricky issues relating to manners and money? Send them to MarketWatch’s Moneyist and please include the state where you live (no full names will be used). Would you like to sign up to an email alert when a new Moneyist column has been published?


Buying a Remodeled Home? 5 Signs It’s a Smart Move—or a...

That said, after nearly a year of living in my house, I (mostly) love it. The major systems are in working order Whether you’re looking for your first home or you’re a seasoned pro, it's easy to get dazzled by brand-new finishes, flooring, and the smell of new paint. But kitchens are expensive to remodel—and if the job was DIY, there's a strong chance that corners were cut. From there, check the backsplash. Finally, take a good look at the appliances. If you’re viewing a full kitchen remodel that seems to have pulled out the stops on high-end finishes, the appliances should match. (I lived in my house for five months before I realized the guest bathroom shower tiles weren’t level.) According to Bill, the shut-off valves, supply lines, and P-traps should generally be replaced during a major remodel. The finishes are pristine “Better attention to detail on the finishes is typically a good indicator on how much the contractor cared about the project as a whole,” Bill says. Finally, get the house blessed by your real estate agent before you make an offer.