I would like to wish everyone a happy and healthy 2009. Now is a great time to reflect and plan. What are your goals for 2009?
What ever your goals may be taking the time to write them down will make you more committed, especially if you determine a time line for completion.
Have a happy New Year.
Sunday, December 28, 2008
Monday, December 22, 2008
Real Estate Predictions for 2009
- Sellers will continue to face falling home values in the new year because they’ll be competing with banks and builders who are slashing prices to sell off the still-huge inventory of foreclosures and new homes.
- The Obama administration will act on its plan to crack down on abusive lending practices.
Mortgage holders in danger of losing their homes will receive more assistance from a variety of programs since the Senate's Joint Economic Committee has predicted two million foreclosures in 2009. - Banks' restructuring should bring increasing calm, making loan modifications and short sales easier to obtain. Eventually this will lead to a decrease in the number of bank-owned properties on the market.
- Mortgage applications will continue to receive a comprehensive review, requiring borrowers to provide extensive income and debt documentation. Those with the best credit will get the best rates.
- The foreclosure crisis has created wiser consumers, with a deeper understanding of real estate, mortgages, and credit enabling better decision-making going forward.
- Green is good with increasing numbers of buyers opting for smaller homes that are within walking distance of school and work.
- Buyers and sellers will be more and more tech savvy, relying on tools like video, webcasts, and mobile search. Consumers and practitioners will benefit from being ahead of the curve.
- Prices will be low as will interest rates, creating great buying opportunities, and likely, inspiring reluctant buyers to make their move.
- The recession will end and buyers will regain confidence in the market.
Source: Frontdoor.com (12/03/08)
Friday, December 19, 2008
Buyers can still Purchase a Home with Little Money Down!
Buyers: You can still buy a home with very little money down, if you know who to talk to...
I received this information via email from Lynn Davis at Asheville Savings Bank this morning:
"We have some FHA changes to bring in the new year!
FHA has changed their down payment require from 3% to 3.5%. Please keep in mind FHA will allow the down payment to be gifted or received from a government approved agency, like Mountain Housing Opportunities or FHLB (Federal Home Loan Bank).
Speaking of Federal Home Loan Bank – if you are not familiar with this grant – it is wonderful! The funds will be replenished in March of 2009, later than normal due to some technical delays, but nonetheless, funding will be replenished. This is a grant provided to first-time homebuyers, up to $10,000. The grant will match 5 times what the homebuyer contributes – up to $10,000. These funds are forgiven after 5 years. Income limits do apply to this program, as does down payment funding from Mountain Housing. Completion of an approved homebuyer education class is required and can be obtained through OnTrack Financial Services. This only applies to primary residence too!
Don’t forget – FHA will allow sellers to pay closing costs and prepaid costs too!
Great way to get your buyer into a house with very little down. I can pre-qualify your client over the telephone or in person.
Don’t hesitate to contact me with any questions. "
Lynn Davis
Mortgage Loan Originator
Asheville Savings Bank
778 Merrimon Avenue
Asheville, NC 28804
828-250-7059 - Direct
828-779-0706 - Mobile
828-254-1402 - Fax
www.lynndavismtg.com
I received this information via email from Lynn Davis at Asheville Savings Bank this morning:
"We have some FHA changes to bring in the new year!
FHA has changed their down payment require from 3% to 3.5%. Please keep in mind FHA will allow the down payment to be gifted or received from a government approved agency, like Mountain Housing Opportunities or FHLB (Federal Home Loan Bank).
Speaking of Federal Home Loan Bank – if you are not familiar with this grant – it is wonderful! The funds will be replenished in March of 2009, later than normal due to some technical delays, but nonetheless, funding will be replenished. This is a grant provided to first-time homebuyers, up to $10,000. The grant will match 5 times what the homebuyer contributes – up to $10,000. These funds are forgiven after 5 years. Income limits do apply to this program, as does down payment funding from Mountain Housing. Completion of an approved homebuyer education class is required and can be obtained through OnTrack Financial Services. This only applies to primary residence too!
Don’t forget – FHA will allow sellers to pay closing costs and prepaid costs too!
Great way to get your buyer into a house with very little down. I can pre-qualify your client over the telephone or in person.
Don’t hesitate to contact me with any questions. "
Lynn Davis
Mortgage Loan Originator
Asheville Savings Bank
778 Merrimon Avenue
Asheville, NC 28804
828-250-7059 - Direct
828-779-0706 - Mobile
828-254-1402 - Fax
www.lynndavismtg.com
Thursday, December 18, 2008
Tax Liens Making it Difficult to Sell or Refinance?
Having problems getting your home refinanced or sold due to a tax lien on your property? Well, the Feds have announced changes that may help many homeowners refinance or sell their homes despite a tax lien.
"The Internal Revenue Service today announced an expedited process that will make it easier for financially distressed homeowners to avoid having a federal tax lien block refinancing of mortgages or the sale of a home.If taxpayers are looking to refinance or sell a home and there is a federal tax lien filed, there are options. Taxpayers or their representatives, such as their lenders, may request that the IRS make a tax lien secondary to the lien by the lending institution that is refinancing or restructuring a loan. Taxpayers or their representatives may request that the IRS discharge its claim if the home is being sold for less than the amount of the mortgage lien under certain circumstances.
In some cases, a federal tax lien can be made secondary to another lien, such as a lending institution’s, if the IRS determines that taking a secondary position ultimately will help with collection of the tax debt. That process is called subordination. Taxpayers or their representatives may apply for a subordination of a federal tax lien if they are refinancing or restructuring their mortgage. Without lien subordination, taxpayers may be unable to borrow funds or reduce their payments. Lending institutions generally want their lien to have priority on the home being used as collateral."
Source: IR-2008-141, Dec. 16, 2008
"The Internal Revenue Service today announced an expedited process that will make it easier for financially distressed homeowners to avoid having a federal tax lien block refinancing of mortgages or the sale of a home.If taxpayers are looking to refinance or sell a home and there is a federal tax lien filed, there are options. Taxpayers or their representatives, such as their lenders, may request that the IRS make a tax lien secondary to the lien by the lending institution that is refinancing or restructuring a loan. Taxpayers or their representatives may request that the IRS discharge its claim if the home is being sold for less than the amount of the mortgage lien under certain circumstances.
In some cases, a federal tax lien can be made secondary to another lien, such as a lending institution’s, if the IRS determines that taking a secondary position ultimately will help with collection of the tax debt. That process is called subordination. Taxpayers or their representatives may apply for a subordination of a federal tax lien if they are refinancing or restructuring their mortgage. Without lien subordination, taxpayers may be unable to borrow funds or reduce their payments. Lending institutions generally want their lien to have priority on the home being used as collateral."
Source: IR-2008-141, Dec. 16, 2008
Monday, December 15, 2008
January Should Be a Great Time to Buy a Home!
There has been a lot of talk in the financial sector regarding lowering mortgage interest rates to as low as 4.5% in the coming month. January is going to be a great time to buy real estate.
- Housing prices have fallen
- Interest rates will be very low- making the monthly mortgage payments lower
- Many homes to choose from- lots of inventory on the market
- First-time buyers have the opportunity to get a $7,500 tax credit from the Federal Government
I personally remember a number of years ago when the interest rate went down to around 4.5%. I refinanced my mortgage from a 8.25% (the going rate at the time I purchased) to 4.5% and saved almost $300 a month on my monthly mortgage payment. Truly a great time to be a home buyer!
Friday, December 12, 2008
Asheville City Market Holiday Bash 12/13/08
Looking for Somthing to Do This Weekend?
Asheville City Market Holiday Bash
Browse the displays of local food from Western North Carolina farmers, and also enjoy local gifts, live music, and activities. Pre-order baked goods and visit Silverbelle, the rein-goat.
Event Contact Information:(828)348-0340 or mike@asapconnections.org
Date:Dec 13, 2008
Time:10:00 AM-04:00 PM
Location:Asheville City MarketAsheville Public Works Building161 South Charlotte StreetAsheville , NC 28801
Asheville City Market Holiday Bash
Browse the displays of local food from Western North Carolina farmers, and also enjoy local gifts, live music, and activities. Pre-order baked goods and visit Silverbelle, the rein-goat.
Event Contact Information:(828)348-0340 or mike@asapconnections.org
Date:Dec 13, 2008
Time:10:00 AM-04:00 PM
Location:Asheville City MarketAsheville Public Works Building161 South Charlotte StreetAsheville , NC 28801
Wednesday, December 10, 2008
Thinking of Doing a Home Improvement Project? 2008 Cost Vs. Value Survey
2008 Cost vs. Value Report: Still Many Happy Returns for Home Rehabs
Remodeling magazine's annual report shows that maintenance-related projects and moderately priced upgrades are providing stable paybacks, even in a slower market.
Top 10 Project Paybacks
Once again, exterior remodeling projects lead the way for recovery on dollars spent in this year’s Cost vs. Value survey. When you compare the national averages, replacement projects that boost curb appeal—siding, windows, and decks—give you the greatest chance of recouping your money. Inside, only kitchen remodels can compare, at least on a national level.
1. Upscale fiber cement siding (86.7%)
2. Midrange wood deck (81.8%)
3. Midrange vinyl siding (80.7%)
4. Upscale foam-backed vinyl (80.4%)
5. Midrange minor kitchen remodel (79.5%)
6. Upscale vinyl window replacement (79.2%)
7. Midrange wood window replacement (77.7%)
8. Midrange vinyl window replacement (77.2%)
9. Upscale wood window replacement (76.5%
10. Midrange major kitchen remodel (76.0%)
Source: G.M. Filisko, Realtor Magazine, December 2008
Remodeling magazine's annual report shows that maintenance-related projects and moderately priced upgrades are providing stable paybacks, even in a slower market.
Top 10 Project Paybacks
Once again, exterior remodeling projects lead the way for recovery on dollars spent in this year’s Cost vs. Value survey. When you compare the national averages, replacement projects that boost curb appeal—siding, windows, and decks—give you the greatest chance of recouping your money. Inside, only kitchen remodels can compare, at least on a national level.
1. Upscale fiber cement siding (86.7%)
2. Midrange wood deck (81.8%)
3. Midrange vinyl siding (80.7%)
4. Upscale foam-backed vinyl (80.4%)
5. Midrange minor kitchen remodel (79.5%)
6. Upscale vinyl window replacement (79.2%)
7. Midrange wood window replacement (77.7%)
8. Midrange vinyl window replacement (77.2%)
9. Upscale wood window replacement (76.5%
10. Midrange major kitchen remodel (76.0%)
Source: G.M. Filisko, Realtor Magazine, December 2008
Monday, December 8, 2008
Mortgage Applications Up!
The number of home buyers applying for mortgages surged by a record amount last week in response to aggressive federal efforts to lower mortgage rates. Financial lobbyists advocated more of the same to stimulate the housing market.
Mortgage applications more than doubled in the holiday week ended Nov. 28 from the week before, according to a report Wednesday by the Mortgage Bankers Association. The association's index, a measure of mortgage loan application volume, was up 112% on a seasonally adjusted basis from the week earlier. And the refinance index leapt 203%.
By Stephanie Armour and Anna Bahney, USA TODAY
Mortgage applications more than doubled in the holiday week ended Nov. 28 from the week before, according to a report Wednesday by the Mortgage Bankers Association. The association's index, a measure of mortgage loan application volume, was up 112% on a seasonally adjusted basis from the week earlier. And the refinance index leapt 203%.
By Stephanie Armour and Anna Bahney, USA TODAY
Friday, December 5, 2008
A Great Article About Pricing Your Home to Sell!
But We Want More Money... When the average seller sits down to interview a real estate agent, it's easy to get caught up in the excitement over choosing a sales price. More money means more financial opportunities for the homeowner. Perhaps it means the seller can afford to buy a more expensive home, help pay for her child's college education or take that greatly overdue vacation. Unfortunately, uninformed sellers often choose the listing agent who suggests the highest list price, which is the worst mistake a seller can make.
Establishing Value... The truth is it doesn't really matter how much money you think your home is worth. Nor does it matter what your agent thinks or ten other agents just like her. The person whose opinion matters is the buyer who makes an offer. Pricing homes is part art and part science. It involves comparing similar properties, making adjustments for the differences among them, tracking market movements and taking stock of present inventory, all in an attempt to come up with a range of value, an educated opinion. This method is the same way an appraiser evaluates a home. And no two appraisals are ever exactly the same; however, they are generally close to each other. In other words, there is no hard and fast price tag to slap on your home. It's only an educated guess and the market will dictate the price.
Source: About.com/Home Buying/Selling
Establishing Value... The truth is it doesn't really matter how much money you think your home is worth. Nor does it matter what your agent thinks or ten other agents just like her. The person whose opinion matters is the buyer who makes an offer. Pricing homes is part art and part science. It involves comparing similar properties, making adjustments for the differences among them, tracking market movements and taking stock of present inventory, all in an attempt to come up with a range of value, an educated opinion. This method is the same way an appraiser evaluates a home. And no two appraisals are ever exactly the same; however, they are generally close to each other. In other words, there is no hard and fast price tag to slap on your home. It's only an educated guess and the market will dictate the price.
Source: About.com/Home Buying/Selling
Wednesday, December 3, 2008
Looking for something to do this weekend?
Biltmore Village Dickens Festival
Dec 05, 2008 to Dec 07, 2008, 5:00PM
Historic Biltmore Village transforms itself into a quaint Victorian village on the first Friday, Saturday, and Sunday of December. Enjoy three days of concerts, refreshments, horsedrawn carriage rides, and strolling vocalists and instrumentalists in costumes of the period. Come join us for the fun!
Location:
Historic Biltmore Village
Biltmore Ave South
Asheville , NC 28803
Dec 05, 2008 to Dec 07, 2008, 5:00PM
Historic Biltmore Village transforms itself into a quaint Victorian village on the first Friday, Saturday, and Sunday of December. Enjoy three days of concerts, refreshments, horsedrawn carriage rides, and strolling vocalists and instrumentalists in costumes of the period. Come join us for the fun!
Location:
Historic Biltmore Village
Biltmore Ave South
Asheville , NC 28803
Tuesday, December 2, 2008
Mortgage Rates Are Falling
30-Year Mortgage Rates Drop Below 6% …
Mortgage Brokers’ phones rang off the hook last week as 30-year mortgage rates dropped below 6 percent. Some brokers say their rates are as low as 5.25 percent.
The rates are down because the Federal Reserve announced that it would buy $500 billion in mortgage-backed securities held by Fannie Mae and Freddie Mac. That would help the two increase the pool of money for new mortgages.
"This is really craziness," says Brian Koss, a managing director of Mortgage Network.
Koss advises borrowers who find an attractive rate to lock it in for 60 days. “Drop everything you are doing, get the mortgage professional all of the paperwork they need, so you don't run out of time," he says.
Source: USA Today, Anna Bahney (11/28/2008)
Mortgage Brokers’ phones rang off the hook last week as 30-year mortgage rates dropped below 6 percent. Some brokers say their rates are as low as 5.25 percent.
The rates are down because the Federal Reserve announced that it would buy $500 billion in mortgage-backed securities held by Fannie Mae and Freddie Mac. That would help the two increase the pool of money for new mortgages.
"This is really craziness," says Brian Koss, a managing director of Mortgage Network.
Koss advises borrowers who find an attractive rate to lock it in for 60 days. “Drop everything you are doing, get the mortgage professional all of the paperwork they need, so you don't run out of time," he says.
Source: USA Today, Anna Bahney (11/28/2008)
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