The Real Estate Geeks: Mandatory Loan Fees Keep Borrowers From Getting Their Absolute Lowest Rate

Conforming mortgage rates may be posting all-time lows this week, but that doesn't mean you'll be eligible for them. You may have already called your loan officer and found this out the hard way.

It's because of a federally-mandated mortgage-pricing scheme known as "loan-level pricing adjustments".

In effect since April 2009, loan-level pricing adjustments are changes to a loan's base rate and/or fee structure based on that loan's inherent risk to Wall Street. It's similar to auto insurance pricing adjustment in that a sports car, all things equal, will cost more to insure than a comparably-priced minivan.

More risk, more cost.

In mortgage lending, loan risk can be loosely grouped into 5 categories. Mortgage applications featuring any of the five traits are subject to price adjustments:

1. Credit Score (i.e. the borrower's FICO is below 740)
2. Property Type (i.e. the subject property is a multi-unit home)
3. Occupancy (i.e. the subject property is an investment home)
4. Structure (i.e. there is a subordinate/junior lien on title)
5. Equity (i.e. mortgage insurance is required by the lender)

Furthermore, loan-level pricing adjustments are cumulative.

A 3-unit investment home will face larger adjustments than an owner-occupied 3-unit home, for example. It's these adjustments that explain why you may not be eligible for the rates you see advertised online and in the newspapers -- your particular loan may be subject to this risk-based pricing that raises your mortgage rate and closing costs.

The government's loan-level pricing adjustment schedule is public information. See what your lender and how your loan quote is made at the Fannie Mae website. Or, if you find the charts confusing, just call or email your loan officer for help with interpretation.

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The Real Estate Geeks - Household Finances : Which Bills Should I Pay First?

Morning television can be "light", but as far as personal finance interviews go, this Suze Orman segment from The Today Show is loaded with practical financial planning advice.

Titled "What Should You Do First?", Ms. Orman addressed the real-life, money management conundrums households face, such as:

• Should I pay off credit card bills, or create an emergency cash fund?
• Should I pay off student loan debt, or pay off credit card bills?
• Should I save for a child's college tuition, or save for my retirement?

In 5 minutes, the segment covers a half-dozen scenarios like the ones above, explaining what to do, and why to do it.

Ms. Orman's style may not interest you and financial advice is rarely universal, but the piece is worth watching.

Watch the clip on the NBC website.

 

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The Real Estate Geeks - How To Improve Your Home's Indoor Air Quality

An EPA study shows that close to dozen common air pollutants are 2 to 5 times more concentrated indoors versus outdoors, regardless of whether the home is is located in Rural America, or in an industrial zone.

The cause is volatile organic compounds, more commonly known as VOCs.

VOCs are gases emitted from certain liquids and solids including paints, cleaning supplies, pesticides, air fresheners and permanent markers, among others. In the short-term, can cause respiratory irritation. In the long-term, VOCs can lead to "Sick Building Syndrome", cancer and other illnesses.

There are a number of ways to keep VOC levels in your home to minimum and the EPA published some tips to help with home health safety. The advice includes:

1. Meet or exceed all product label precautions
2. When buying paints and chemicals, don't buy bulk. Buy only what you need. Dispose of the rest.
3. If a product label says "use in well-ventilated area", move to the outdoors or use a fan

VOC levels can remain elevated for long periods of time even after the VOC-generating activity is completed.  Therefore, take care to protect your home and your health.

Read the EPA's complete guide to volatile organic compounds on its website.

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The Real Estate Geeks: Was The Pending Home Sales Report Really That Bad? It Depends Who You Ask -- Buyer Or Seller.

The Pending Home Sales Index plunged in May 2010, just one month after the expiration of the federal home buyer tax credit program.

The Pending Home Sales Index is now at a record-low level.

A "pending home sale" is an existing home under contract to sell, but not yet closed. According to the National Association of Realtors®, 80 percent of homes under contract close within 60 days.

Because of this timeline, we can expect the summer's Existing Home Sales to be weak, too. With fewer homes going under contract, fewer homes can close.

On the surface, May's Pending Home Sales Index looks like terrible news for housing. And, if you're a seller, it just might be. But, if you're a buyer, the story reads differently.  Just consider the market conditions. 

A broad look at the housing market shows:

1. Home supplies are rising in most markets
2. Home sales are falling in most markets
3. Mortgage rates are at all-time lows

In other words, in most markets, more sellers are competing for fewer buyers, and the "winning" buyers are financing their homes at the lowest rates in history.

It's an excellent time to be a home buyer.

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The Real Estate Geeks: The Year Is Half-Over - How Did The Housing Experts Fare On Their Predictions?

As 2009 was ending, the "experts" were busy making forecasts about the U.S. economy and what to expect in 2010.

With respect to the housing markets, two predictions were made again and again:

1. Home prices would fall in the first half of 2010
2. Mortgage rates would be higher in 2010

Well, it's July 1 and the year is half-over.  Both predictions are proving to be incorrect. Home values are rising in most markets and mortgage rates are down. Way down. 

It reminds us that economists are much more skilled with analysis of the past versus predictions of the future.

A pile of data can only get you so far.

Think of housing market predictions like watching a local weather forecast. A meteorologist can look at the radar and tell you that rain is coming, but it's never with 100% certainty.  There is always a chance of change.

The housing market is the same way.  Just as the U.S. economy is unpredictable, so are housing prices, and so are mortgage rates. 

Therefore, when you have a personal finance decision to make, evaluate your options based on the information at hand today rather than an educated guess about the future. The future, after all, is subject to change -- despite what the experts forecast.

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The Real Estate Geeks: The 1 Force That Can Really Change A Mortgage Rate

All day, every day, conforming and FHA mortgage rates in California are in flux.  Rates move in response to hundreds of factors which exact varying levels of influence.

Among the biggest influences on mortgage rates is inflation.  When inflation is unexpectedly high, mortgage rates tend to rise quickly. Conversely, when inflation is unexpectedly low, rates tend to fall quickly.

But what is inflation?

By definition, inflation is when a currency loses its value; when what used to cost $1.00 now costs $1.10.

As consumers, we recognize inflation by the items we buy on a daily basis becoming more expensive.  However, it's not that goods are more expensive -- it's that the dollars we're using to buy them have become worth less.

With respect to mortgage rates, this is a big deal because mortgage rates are directly related to the price of a special type of bond called a mortgage-backed bond.

On Wall Street, mortgage-backed bonds are priced, bought, and sold in U.S. dollars so as inflation renders those dollars less valuable, so it does to mortgage-backed bonds as well. It's a chain reaction by which mortgage bonds lose value, leading investors sell them, causing bond prices to fall on the excess supply.

And, because mortgage rates move opposite of bond prices, as inflation takes hold, mortgage rates rise.

Lately, inflation has been exceptionally low. The Federal Reserve acknowledged as much in its last statement to the markets, and available data backs that position.  This, after predictions that inflation would be "runaway" in 2010.

The Cost of Living is up just modestly this year and it's helping mortgage rates stay low. And, so long as it lasts, the cost of owning a home will remain relatively inexpensive.

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The Real Estate Geeks On: The Largest Historic Homes In The United States

In 2009, the median size of new homes started was roughly 2,100 square feet. This figure was down from 2,200 square feet between 2005-2007 which, itself, was down from 2,350 in 2004.

Homes are getting smaller across the United States.

But, as compared to the nation's largest homes, the shrinking is laughable. The Biltmore Estate, built in 1895 by George Washington Vanderbilt II, measures 175,000 square feet -- 83 times the size of a typical home today.

The Biltmore Estate in Asheville, North Carolina is the largest home in the country and, meanwhile, another Vanderbilt-built property built in 1895 checks in at number two. The Breakers, in Newport, Rhode Island, measures 165,000 square feet and cost $150 million to build in today's dollars, adjusted for inflation.

Both homes are open to the public.

The next three largest U.S. estates in terms of square footage are:

• Oheka Castle in Huntington, New York (109,000 square feet)
• Winterthur in Winterthur, Delaware (96,582 square feet)
• Meadow Brook Hall in Rochester Hills, Michigan (88,000 square feet)

Hearst Castle, arguably the most famous "large home" in the country, measures 60,645 square feet and ranks 7th.

See the complete list of Largest Historic Homes In The United States, including their build date and architecture style, on Wikipedia.

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The Real Estate Geeks On: 1 In 8 Banks Tightened Prime Mortgage Standards Last Quarter

The Federal Reserve says that financial markets "remain supportive of economic growth". Residential mortgage guidelines, however, continue to tighten.

If you've applied for a home loan recently, you probably felt it; extra scrutiny on income, assets and credit scores, among other things.  The hard proof of the changes, however, can be found in the Federal Reserve's quarterly survey of its member banks.

Every 3 months, the Federal Reserve asks senior bank loan officers around the country whether their respective banks' "prime" residential mortgage guidelines tightened since the last survey.

For the period January-March 2010, 1 in 8 banks surveyed toughened their qualification standards. 

Only 4% loosened them.

When we account for the Fed's survey in conjunction with new underwriting standards from Fannie Mae and FHA, it's clear that getting approved for a mortgage in 2010 is more difficult than at any time in recent memory.

Today's homeowners and home buyers have taller hurdles to leap:

• Minimum FICO scores are higher
• Downpayment/equity requirements are larger
• Debt-to-Income thresholds are smaller

In other words, mortgage rates may stay low throughout 2010, but that won't matter to homeowners failing to meet the new, minimum eligibility standards as set forth by the lenders.

If you're among the many people wondering if now is the right time to buy or refinance a home, remember that -- along with a probable increase in mortgage rates -- mortgage approvals are getting more scarce.

The best home price or mortgage rate in the world won't matter if you're ineligible for financing.

For all buyers: One thing to keep in mind once you are pre-approved for a loan keep in constant contact with your lender. This will give you the upper hand in knowing if a change will or will not effect you and your ability to purchase. Also keep them 100% updated with new paycheck stubs and bank statements so they are ready to go when you get an offer accepted. One last note on this whatever you do DO NOT spend any money on anything you absolutely can not live without before speaking to your lender.

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March Pending Home Sales Point To Stronger Spring Market

The Pending Home Sales Index moved higher in March as home sales were spurred by low mortgage rates and an expiring tax credit.

A "pending home" is a property that is under contract to sell, but not yet closed.

March marks the second straight month in which the Pending Home Sales Index improved after a series of weak showings this past winter.

March showed a 5 percent increase over the month, but the Pending Home Sales Index is still off its October 2009's peak.  October 2009 is a comparable period to March 2010 in that it marked the 1-month deadline before the home buyer tax credit's initial expiration date. The credit was later extended to April 2010, of course.

That said, March's surge in sales is being felt on the street.

Home buyers no doubt noticed the change in activity. Around the country, anecdotally, multiple offer situations were more common last month and "right-priced" homes tended to go under contract quickly.

The increase in March's Pending Home Sales is diminishing the nation's home supply which, in turn, should cause prices to rise in most markets.

Today's buyers should consider making an offer sooner rather than later.  Looking at the data, it appears the best time to have found a "deal" on a home may have been in February.

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Fannie Mae Tightens Guidelines On ARMs And Interest Only Products

For the first time this year, Fannie Mae announced significant updates to its mortgage underwriting guidelines.

The changes include newer, harsher ARM qualification standards, the elimination of a once-popular loan product, and tighter rules for interest only mortgages. 

Fannie Mae made its official announcement April 30, 2010.  The changes will roll out to home buyers and homeowners over the next 12 weeks.

The first guideline change is tied to ARMs of 5 years or less. 

Mortgage applicants must now qualify based on a mortgage rate 2% higher than their note rate.  For example, if your mortgage rate is 5 percent, for qualification purposes, your rate would be 7 percent.

The elevated qualification payment will disqualify borrowers whose debt-to-income levels are borderline.

The second change is Fannie Mae's elimination of the standard 7-year balloon mortgage.  Balloon mortgages were popular early last decade.  Lately, few borrowers have chosen them, though.  Mostly because rates have been relative high as compared to a comparable 7-year ARM.

And, lastly, Fannie Mae is changing its interest only mortgages guidelines.

Effective June 19, 2010, Fannie Mae interest only mortgages must meet the following criteria:

1. The home must be a 1-unit property
2. The home must be a primary residence, or vacation home
3. The borrower's FICO must be 720 or higher
4. The mortgage must be a purchase, or rate-and-term refinance. No "cash out" allowed.

Furthermore, borrowers using interest only mortgages must show two full years of mortgage payments "in the bank" at the time of closing.

Earlier this year, Fannie Mae-sister Freddie Mac announced that as of September 2010, it will stop offering interest only loans altogether.

Between Fannie Mae, Freddie Mac, the FHA, and other government-supported entities, the U.S. government now backs 96.5% of the U.S. mortgage market.  So long as mortgage default rates are high, expect approvals for all borrower types to continue to toughen.

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Portable, Foldable Speakers Are Perfect For Your Office, Your Hotel, And The Beach

Fold-up speakers for your MP3 players? You better believe it. OrigAudio's eco-friendly Fold-N-Play speakers let you take your favorite playlists on the road to your office, hotel rooms and the beach.

 

Made from recycled materials, the Fold-N-Play speakers and arrives in a similarly-recycled box. It's two, flat pieces of cardboard with embedded speakers and an attached cable. There's no batteries.

 

All you need is a headphone jack.

 

Follow the enclosed instructions to convert the speakers into 3-inch cubes of sound. Then, when you're done, fold them back up and slip them into your laptop sleeve. The 1-watt sound won't rival a home stereo system, but will outperform most internal laptop speaker sets.

 

The OrigAudio Fold-N-Play made Time Magazine's list of 50 Best Inventions of 2009. It sells for $20 per set, or $80 for all 6 available styles.

 

Visit the OrigAudio website at http://origaudio.com.

 

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Lawmakers Deliberate HAMP Revisions

I know millions of you out there are having a financial crisis in one form or another.  The promise of help is on its way, but don't wait for help start acting now. If you have not spoken to your lender do so and see what they can do for you. For other options contact The Real Estate Geeks 714-272-5369

The House Financial Services’ housing subcommittee held a formal hearing this week on the administration’s new initiatives to provide help to underwater and unemployed homeowners through the Home Affordable Modification Program (HAMP).

Most of the industry participants testifying on Capitol Hill applauded the Treasury’s efforts to tackle these foreclosure triggers, but there are some who are questioning the logistics and the true effectiveness of the new program enhancements.
These enhancements, announced by the Treasury just three weeks ago, include principal write-downs on underwater mortgages, an FHA negative equity refinancing program, and temporary assistance for homeowners who’ve lost their jobs.

Andrew Jakabovics, associate director for housing and economics at the Center for American Progress Action Fund, said, “HAMP has been criticized by its overseers for essentially trying to address last year’s bad mortgages – subprime and other exotic loans whose terms were largely unsustainable from the start. In moving to offer underwater but otherwise creditworthy borrowers an FHA refinancing and in bringing principal write-downs into the HAMP modification process, the administration is attempting to tailor its response to address the current problem of prime loans going bad.”

Dean Baker, co-director of the Center for Economic and Policy Research, stressed to lawmakers that wider use of principal write-downs would be a strong tool in deterring the growing problem of strategic defaults.
“Being underwater means that homeowners have relatively little at stake in keeping their homes,” he said. “The fact that such a huge number of mortgages are underwater guarantees that there will be millions of homeowners facing default and foreclosure.”

But Baker noted that the housing bubble is still deflating and prices are expected to fall further still. He says when you crunch the numbers, many homeowners “will be better off giving up their home,” but rather than displace and uproot these families, Baker put forth a proposal to lawmakers that he says would be “a much more efficient approach.”

Baker urged Congress to enact legislation that would “temporarily change the rules on foreclosure” to allow homeowners to stay in their homes, paying the market rent for a substantial period of time following foreclosure. By incentivizing lenders to negotiate, he says this ‘Right to Rent’ law would “immediately benefit all homeowners facing foreclosure, could be implemented at no cost to taxpayers, and would require no new bureaucracy.”

The Congressional Oversight Panel said in a report issued earlier this week, “The long delay in dealing effectively with foreclosures underscores the need for Treasury to get its new initiatives up and running quickly, but it also underscores the need for Treasury to get these programs right. Even if Treasury’s recently announced programs succeed, their impact will not be felt until early 2011.”

Phyllis Caldwell, head of the Treasury’s Homeownership Preservation Office, told the subcommittee that implementation details for the principal write-down option is expected by early fall, with the unemployment forbearance component likely within the next two months.

Rep. Maxine Waters (D-California), chair of the housing subcommittee, expressed concern over the voluntary nature of the principal write-down piece of the program and bank executives’ testimonyfrom earlier in the week that a large-scale principal forgiveness push is unfair to a majority of mortgage-paying homeowners.

“Increasingly, I am unconvinced that these voluntary programs are going to provide the assistance that homeowners desperately need,” Waters said at the hearing. “When these financial institutions find themselves underwater on their own real estate investments, they themselves often stop making payments,” she said, citing Morgan Stanley’s strategic default earlier this year on five underwater office buildings in San Francisco.

In his testimony, FHA Commissioner David Stevens pointed out that the “housing initiatives must balance the need to help responsible homeowners struggling to stay in their homes, with the recognition that we cannot and should not help everyone.”

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This information was found on DS News by Carrie Bay

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It's A Good Time To Look At Adjustable Rate Mortgages

Each week, government-led Freddie Mac publishes a weekly mortgage rate survey based on data from 125 banks across the country.  According to this week's results, the relative rate of a 5-year ARM in California is extremely low versus its 30-year fixed-rate cousin.

Consider this comparison:

• In April 2009, the two products ran neck-and-neck with respect to rates
• In April 2010, the two products are split by 0.99 percent

On a $200,000 home loan, that's a difference of $117 per month to a mortgage payment.

Adjustable-rate mortgages aren't suitable for everyone, but they can be a terrific fit given your individual circumstance.  For example, any one of the following scenarios could warrant a 5-year ARM:

1. Buying a home with an intent to sell within 5 years
2. Currently financed with a 30-year fixed mortgage with plans to sell within 5 years
3. Interested in low payments and comfortable with longer-term interest rate and payment uncertainty

Additionally, homeowners with existing ARMs may want to refinance into a brand-new ARM, if only to extend the initial change date on the current note.

Before opting an ARM or a fixed, speak with your loan officer about how adjustable-rate mortgages work, and what longer-term risks may exist.  The savings may be tempting, but there's more to consider than just the payment.

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Why You Shouldn't Schedule Your Closing For May 28, 2010

The federal home buyer tax credit expires April 30 and the deadline is sparking a home sale surge. It figures to burden real estate, mortgage and title offices nationwide over the next 60 days so plan your closing date accordingly.

Especially because the last Friday in May is the Friday before Memorial Day.

Now, if the connection between the tax credit and Memorial Day is not immediately clear, think of your own office on a 3-day weekend's Friday. Some of your colleagues take a half-day at work, others take the entire day off.

Office-wide, productivity drops.

The same is true in the real estate space. Offices are short-handed ahead of a holiday so, if you're under contract for a home and plan to close in May, consider a closing date other than Friday May 28, 2010. 

And meanwhile, with 6 weeks until Memorial Day, here's some steps you can take today prepare for other people's time off later. 

 

 

1. Notify your lender of your planned vacation time between now and your scheduled closing
2. Purchase a homeowners insurance policy and prepay the first year. Send proof of payment to your lender.
3. Have Power of Attorney forms lender-approved and signed by all parties in advance, if applicable
4. Deposit gift monies and/or retirement fund withdrawals into an acceptable bank account, if applicable
5. Schedule your final walk-through as far in advance as is realistic so there's time to make "fixes", if needed
6. Have your closing funds ready at least 1 day in advance

The tax credit's expiration is around the corner and as it gets closer, real estate-related businesses are taking on more work. Basic title and mortgage tasks are taking longer to complete and that should persist for a while.

Get ahead of the curve and beat your contract dates handily. Use the checklist above and be responsive to your lender's requests.

 

And, if at all possible, avoid closing on the Friday before Memorial Day and even the Tuesday after -- it's when office staffs are at their smallest.

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The Best Home For Sale In Alamitos Heights of Long Beach

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California Legislature approves tax break for people in foreclosures, short sales

This was in yesterdays Los Angeles Times... So if any of you who are having a financial hardship, THIS IS BIG NEWS for YOU If you have any questions about this piece of Legislation or the Federal Debt Forgiveness Act please Contact Your Tax Consultant & The Real Estate Geeks: Chip Esajian @ 714-272-5369 or Melissa Bayles @ 714-720-2555 The measure, which is expected to be signed by Gov. Arnold Schwarzenegger, would waive state taxes on mortgage debt that has been forgiven in a foreclosure or short sale. By Patrick McGreevy of The Los Angeles Times Reporting from Sacramento Thousands of Californians whose homes were foreclosed on or sold at a loss would get tax relief under a measure approved Thursday by the state Legislature. The bill would waive state taxes on mortgage debt that has been forgiven in a foreclosure or short sale. It is expected to affect about 34,000 taxpayers. Gov. Arnold Schwarzenegger said he would sign the measure, which would also provide about $60 million in tax credits to green-energy companies, when it reached his desk. Californians can already claim the tax breaks on federal returns. Lawmakers passed the measure in time for people to take advantage of it by the April 15 deadline for filing tax returns. "The mortgage-debt tax relief provision in this bill will provide financial shelter for tens of thousands of Californians who have lost their hopes and dreams in the housing market crash, and it's about time we gave these folks a helping hand," said state Sen. Ron Calderon (D-Montebello). The short-sale provision would mean about $34 million less in tax revenue for the state over three years, according to the Franchise Tax Board. The "green" credits are a response to the federal American Recovery and Reinvestment Act, which provides grants to firms for power plants that produce renewable energy. The federal government does not tax the grant money. Under the bill approved Thursday, California would provide similar relief. Other parts of the measure, SB 401 by Sen. Lois Wolk (D-Davis), were called tax increases by Republicans. Even though they supported the tax-relief element, several GOP members of the Senate and Assembly voted against the bill, which was opposed by the Howard Jarvis Taxpayers Assn. The Republicans objected to a provision that would reduce deductions for charitable gifts, and to changes that would allow the state to tax more income earned by minor dependents. The changes would also make it harder to qualify a home as a principal residence for purposes of escaping capital gains taxes when the property is sold, and some penalties and interest charges to corporations would be increased, according to Therese M. Twomey, a principal consultant for the Senate Republican Policy Office. These changes would bring in more than $10 million in new revenue over five years, Twomey said. "It's an issue of fairness," said Sen. George Runner (R-Lancaster). "You are giving money to one group of people and taking it away from another group of people." With the plunge in the real estate market, many Californians have found themselves owing much more on their mortgages than their homes are worth. Some have been foreclosed upon or asked their lender to approve a short sale, in which a home is sold for less than the debt, some of which is waived. The amount waived has been considered taxable income under California law. The measure passed Thursday would eliminate that tax when a bank agrees to accept less than what is owed on a home. The governor vetoed a similar bill last month because it included a provision, since removed, that would have increased penalties against businesses and wealthy individuals who abuse tax credits. Business groups including the California Chamber of Commerce and Western States Petroleum Assn. complained that the provision would have made businesses reluctant to claim the tax breaks for fear of making a costly error. The businesses also said California's tax penalties were already tougher than those in other states. Wolk said the penalties would not have applied to honest mistakes. The new measure would lift a great burden from the shoulders of Valarie Wood and her husband, who were facing a $10,000 state tax bill on debt that was forgiven in a short sale of their property in Ventura. The 10-acre property, which included an avocado grove, had plummeted in value far below what they owed. Health problems and a "mortgage gone awry" forced the couple to renegotiate their loan with their bank, which agreed to waive about $300,000 of debt on the house and property, Wood said. "We've lost our dream home. We are in our 60s, and it was going to be our retirement," she said, her voice choking with emotion. "This bill is crucial for people like us. We are extremely relieved." Schwarzenegger said during a news conference Thursday that he wants to give homeowners and businesses "the relief they need." "We want to be helpful in every way we can, so we will sign it," he said.

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Don't Leave Tax Credits On The Table (And How To Get Them Back If You Already Filed)

Taxes are due April 15 and if you're among the millions of Americans who wait until the last week to file, here's a video interview that could help you reduce your federal tax liability. 

Originally broadcast by NBC's The Today Show, the 4-minute piece reviews various tax credits and deductions, plus some recent tax law changes.  A few of the topics covered include:

• Tax filers receiving larger "personal exemptions" in 2009 versus 2008
• Unemployment income recipients being required pay taxes beyond the first $2,400 received
• The "first time" home buyer credit being extended to non-first time home buyers for up to $6,500

The interview also talks about how taking a parent, child or other family member into your home may change your tax filing status and reduce your tax liability.

Even if you've filed your taxes already, watch the video above. You may find that you missed a potential deduction. If that's the case, consider filing an amended return with the IRS to recapture the credits you left on the table.  Most times, the benefits of re-filing will outweigh the costs of doing it.

Be sure to talk with your tax professional for personal tax advice.

Also don't forget to ask about how buying a home or an investment property can save you money too

 

For more information on getting the right home, at the right price, at the right time... Contact The Real Estate Geeks Chip 714-272-5369 or Melissa 714-720-2555

 

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The March Fed Minutes Explains Why Home Sales Weren't Worse This Winter

Mortgage markets improved yesterday after the Federal Reserve released its March 16, 2010 meeting minutes. It's good news for home buyers and rate shoppers -- rates could have just as easily gone the other way.

The Fed Minutes is a detailed recap of the debate and discussion that shapes the nation's monetary policy. The notes are dense; it takes 3 weeks to compile them for publication.

As compared to the more well-known, post-meeting press release, the Fed Minutes are extremely lengthy. For example:

• March 16 press release : 451 words
• March 16 meeting minutes : 6,152 words

If the press release is the executive summary, the Fed Minutes are the novel.

The extra words matter.The minutes recount what the Fed did, how the Fed did it, and what the Fed plans to do next. And, in the minutes, Wall Street looks for clues. 

This is why the report is important to every rate shopper in the country.

When the Federal Reserve publishes the minutes from its meetings, it leave clues about the groups next policy-making steps.  For example, in March's Fed Minutes, it's clear that the Fed's concern about inflation is hugely diminished and that's a major plus for the mortgage bond market.

Inflation causes mortgage rates to rise. The absence of inflation, therefore, helps them to fall.  This improves home affordability, among other things.

Similarly, the Fed Minutes note that real estate sales may have been worse throughout the winter months if not for low mortgage rates and the sense among Americans that home prices were troughing. We may infer, therefore, that rising rates may suppress home sales later this year.

Markets are always looking for clues from inside the Fed and the last meeting's minute signal that the economy is on its way up.  If you're looking for a bargain in the housing market, your window to act may be closing.

For More Information about your area contact The Real Estate Geeks Chip @ 714-272-5369 or Melissa @ 714-720-2555

 

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Pending Home Sales Soar In February, As Expected. Buyers Are Everywhere.

As expected, the Pending Home Sales shot higher in February, boosted by the federal home buyer tax credit's April 30 deadline.

Versus the month prior, February's index rose 8 percent but remains well off the highs set last October.

For today's home buyers and seller, the Pending Home Sales Index is an important measurement. This is because a "pending home" is a property that is under contract to sell, but not yet closed.

According to the National Association of Realtors®, 80% of homes under contract close within 60 days, historically. Therefore, a higher Pending Sales figure in February projects that April's Existing Home Sales will be higher, too.

If you're a home buyer today, no doubt you've noticed the extra market activity.

On right-priced homes, multiple offer situations are more common; sales prices are settling closer to listing price; Days on market is falling. These are the signs of a buyer-heavy market.  It drives home supplies down and home prices up.

It's a good time to be a seller, in other words.  Especially as buyer activity looks poised to peak.

When the home buyer credit faced its last expiration in November 2009, we saw a pattern of buyers rushing to beat the deadline.  There's no reason to expect that won't happen again. And as it does, Pending Home Sales should continue to climb. Average home sale prices should rise.

Home buyers may find it smart to go under contract sooner rather than later. Pending Home Sales is a warning shot.  Higher home sales figures are ahead.

What's your home worth? To find out contact The Real Estate Geeks for a FREE no obligation consultation: Chip Esajian 714-272-5369 or Melissa Bayles 714-720-2555

 

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Worried About Natural Disasters? Here's How To Protect Your Household.

Baja California was hit by a 7.2 magnitude earthquake Sunday, a tremor felt as far away as Yuma, Arizona. Rhode Island dealing with massive flooding. Winter storms are pounding the Rockies. It all reminds us that natural disaster can strike anywhere, at anytime. 

You can't stop Mother Nature, so your best defense is to be prepared.

A terrific resource for families around the country is the Department of Homeland Security's Ready.gov, a website aimed at family, business and community disaster readiness. This includes defense against physical attacks, and as well as hurricanes, tornadoes, earthquakes and floods.

The Ready.gov website contains tips, notes and checklists, including the 3-minute "It Takes Just Three Steps To Get Ready For An Emergency" video featured above. 

If you've never watched it, do it now.  Then, test your home's disaster readiness with this 10-question quiz.  There's no "passing grade" on the test but, via your own answers, you'll see where your home has room for readiness improvement.

Disasters are unpredictable and most of us will face them at least once in our lives. Be prepared in advance, therefore.  Protecting your household is simpler than you think.

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Case-Shiller Shows Home Price Improvement In A Majority Of Cities Nationwide

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Standard & Poors released its Case-Shiller Index Wednesday. The report shows that, on a seasonally-adjusted basis, between December and January, home prices rose in more than half of the index's tracked markets.

The strength of this month's Case-Shiller report, however, should be put in context.

For one, the report is on a 2-month delay; it's showing data from January, before the start of the Spring Buying Season and before the rush to beat the tax credit. Anecdotally, buyer interest has been strong since, leading to the types of multiple offer situations that drive home prices northward.

In other words, home values may be even higher than what's reflected in the January Case-Shiller data above.

Furthermore, the Case-Shiller Index measures home values in just 20 cities nationwide and they're not even the 20 biggest cities. Houston, Philadelphia, San Antonio and San Jose are specifically excluded from the report and each ranks among the country's 10 most populous areas.

Despite its flaws, though, the Case-Shiller Index remains important. Much like the government's Home Price Index, the private-sector report helps to finger broad housing trends and housing is still considered a keystone in the U.S. economic recovery.

Even if it's two months slow.

For more information about your homes value give us a call for a FREE consultation: The Real Estate Geeks 714-272-5369

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As of April 1st 2020 The Federal Home Buyer Tax Credit Enters Its Home Stretch — 30 Days Left

There's just 30 days remaining to use the federal home buyer tax credit. The credit ranges up to $8,000 for first-time homebuyers, and up to $6,500 for existing homeworkers who have lived in their main home for 5 of the last 8 years.

via therealestategeekstv.com

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Get Your FHA Mortgage Application Started -- Fees Increase 1/2 Percent Starting Monday, April 5, 2010

Starting Monday, April 5, 2010, getting an FHA mortgage will be more expensive for borrowers.

In new guidelines set forth earlier this year, the FHA announced plans to raise additional revenue and reduce the overall risk of its mortgage portfolio. 

The changes include the following:

1. Increase Upfront Mortgage Insurance Premiums from 1.75% to 2.25% for everyone
2. A plan to reduce seller concessions from 6 percent to 3 percent
3. An increase in minimum downpayment for FICOs 580 or lower

For your own loan, to avoid being subject to higher loan costs, make sure to have your FHA Case Number assigned prior to Monday, April 5, 2010.  That means you'll want to give a full mortgage application before the weekend so your lender can register your loan in time for the deadline.

But don't leave your application to the last minute.

Friday is Good Friday so most banks will be closed. Your true FHA deadline, therefore, is Thursday April 1.

Also worth noting is that the FHA isn't done with its changes.

In its policy statement, the group also announced its plans to petition Congress to raise monthly mortgage insurance premiums.  The FHA's formal request, in summary:

1. Raise monthly premiums by roughly 0.30%, or $25 per $100,000 borrowed per month
2. Lower upfront mortgage insurance premiums by 1.25%, or $1,250 per $100,000 borrowed at closing

For now, the request is neither approved nor acknowledged by Congress. It's merely a request. And in the event that Congress does approves it, the FHA reserves the right to change its projections.  Either way, it means higher costs for consumers. 

The best plan, therefore, is to get your FHA mortgage into underwriting ahead of the switches because borrowing money will be harder, and more costly.

With the ever changing real estate market and lending conditions make sure you align yourself with a team that's in the know! Call The Real Estate Geeks 714-720-2555

 

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The Baker's Edge Nonstick Brownie Edge Pan Makes Perfect, Double-Edged Brownies

For fans of "edge" pieces, this brownie pan from Baker's Edge is a cookware best-seller and for good reason. It's built strong and bakes double-edged, extra chewy brownies to perfection inside and out.

Made from heavy-gauge cast aluminum, the Brownie Edge Pan is a continuous baking chamber that channels heat to all pan parts equally.  The result is a more evenly-cooked, better tasting batch of brownies. And with a 9 by 12 by 2 inches capacity, the pan is large enough to handle most homemade and box mixes.

Like cookware, you often get what you pay for with respect to baking products and, at $35 from Amazon.com, the Baker's Edge Nonstick Brownie Edge Pan may be worth every penny.

Buy one for yourself, or as a housewarming gift for a friend. It's perfect brownies every time.

The Real Estate Geeks 714-720-2555 for all of your household needs

 

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The Home Price Index Shows Home Values Lower Broadly, But Not Specifically "The Real Estate Geeks"

Home values fell again in January, according to the Federal Home Finance Agency's Home Price Index. Values were reported down 0.6 percent, on average.

We say "on average" because the Home Price Index is a national report. It doesn't capture the essence of a local market , or even a city market.

The most granular that the monthly Home Price Index gets is regional and January's report shows that:

• 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%

It's hardly helpful for home buyers entering the market, or home sellers trying to properly price a home.  Furthermore, because the Home Price Index reports on a 2-month delay, its data fails to reflect the current market conditions.

Versus January -- the period from which HPI data is collected -- mortgage rates are lower, buyer activity is up, and the federal home buyer tax credit is closer to expiring.  These each can have an impact on housing.

Ultimately, national real estate data like the Home Price Index is best suited for lenders and policy-makers.  National data helps to identify trends that shape formal policy, but it doesn't help you, specifically. 

Since peaking in April 2007, the Home Price Index is off 13.2 percent.

If you're seriously considering about buying, selling or investing give us a call. We can set up a complete plan to fit your needs. The Real Estate Geeks 714-272-5369

If you're having troubles keeping up with your mortgage payments please know you're not alone and you have options. To learn more about these options give us a call at 714-272-5369 or you can email us at Help@TheRealEstateGeeks.Net

Governor, lawmakers agree to early budget package ****BIG NEWS FOR HOME BUYERS***

The measures include tax breaks for new home buyers and green-technology companies, and diversion of $1.1 billion in transit funds to pay down the estimated $20-billion deficit.

By Shane Goldmacher

Los Angeles TimesReporting from Sacramento - After weeks of bickering over how to cut the deficit-ridden budget, Gov. Arnold Schwarzenegger and lawmakers agreed Monday to trim $1.1 billion from mass transit but give new tax breaks to home buyers and green-technology companies.

The governor, who signed part of the package into law Monday evening, said the tax incentives -- which could add to the budget woes -- are crucial to the state's economic recovery.

"The package of bills as written will provide significant benefit to the state's general fund and will help put Californians back to work," he said in a statement. He expects to sign the rest of the package later in the week.

The linchpin of the legislation is the tax credit of up to $10,000 for first-time home buyers and those purchasing newly built homes. It would take effect May 1.

Another element of the package would allow companies that buy green-technology manufacturing equipment to avoid sales tax on those purchases for 10 years. It would start immediately.

The agreement came after Schwarzenegger announced last week that he would not approve the transit-reduction package that the ruling Democrats pushed through the Legislature. The governor pressed for deeper cuts and cited lawmakers' failure "to take meaningful steps to stimulate job creation."

With the tax breaks in place, the governor changed direction, approving the plan to divert $1.1 billion from mass transit to pay down the deficit, which is estimated at $20 billion.

To get at the money, lawmakers and the governor are rewriting gasoline-tax laws, swapping a levy that state law designates for mass transit with a tax that can be directed to closing the deficit.

The plan preserved more than $400 million in the budget for bus and rail systems, at the insistence of Democrats. Schwarzenegger had initially pushed to eliminate state funding for mass transit entirely.

Many local transit agencies are supporting the compromise.

"This is probably just about the best we can do right now," said Jane Reifer, who chairs Transit Advocates of Orange County.

Monday's deal marks the first dent Sacramento has made in California's deficit. Schwarzenegger vetoed earlier legislation that Democrats said would have cut more than $2 billion more from the budget. The governor said the plan relied on unrealistic assumptions and ultimately would not save the state as much as the Democrats claimed.

Senate President Pro Tem Darrell Steinberg (D-Sacramento) has called the early-year budget actions a "down payment" on the deficit. Lawmakers have largely avoided the politically sticky task of slicing away at education, health and human services so far this year, hoping an improved economy and help from Washington will shrink the deficit to a more manageable size.

The tax break for home buyers won't help with that task. Lawmakers are setting aside $200 million to pay for it. Buyers can receive 5% of a home purchase price back as a state tax credit, up to $10,000, as long they reside there for two years.

A similar program that passed last year was wildly popular. Buyers snatched up all $100 million in available credits within months.

The green-technology credit approved Monday passed unanimously in both houses -- a rare feat in the fractious Capitol -- and lawmakers hailed it as an important investment in California's burgeoning green industry.

"It will create jobs," said Assemblyman Bob Blumenfield (D-Woodland Hills).

There is no cap on the green credits, which worries some activists.

"They absolutely should have a cap on there," said Lenny Goldberg, executive director of the California Tax Reform Assn. "You don't know how it's going to be used and misused."

**** This is big news... Up to $10,000 for First Time Home Buyers, Hello

How will the money last? Who knows so don't wait! To get started call The Real Estate Geeks Today 714-720-2555

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For Clues About The Future Of Mortgage Rates, Watch For Inflation

Homes are more affordable across the nation as the housing market emerges from a slow winter season with mortgage rates still near 5 percent.

Soft housing and low rates are an excellent combination for home buyers but whereas home values rise with a gradual pace, mortgage rates change in an instant.  It's something worth watching.

Each 0.25% increase to conventional or FHA rates adds approximately $16 per month for each $100,000 borrowed. Mortgage rate volatility can change your household budget.

If you're trying to gauge whether rates will be rising or falling, one keyword for which to listen is "inflation". Mortgage rates are highly responsive to inflation.

By definition, inflation is when a currency loses its value; when what used to cost $2.00 now costs $2.15. As consumers, we perceive inflation as goods becoming more expensive.  However, it's not that goods are more expensive, per se. It's that the dollars used to buy them are worth less.

This is a big deal to mortgage rates because mortgage bonds are denominated, bought, and sold in U.S. dollars.  As the dollar loses value to inflation, therefore, so does the value of every mortgage bond in existence. When bonds lose their value, investors don't want them and bond prices fall.  Mortgage rates move opposite of bond prices. 

Prices down, rates up.

In today's market, the relationship between inflation and mortgage rates is helping home buyers. The Cost of Living made its smallest annual gain in 6 years last month and the Fed has repeatedly said that inflation will stay low for some time. The combination is driving investors to buy mortgage bonds which, in turn, is suppresses rates.

So long as it lasts, the cost of homeownership will remain relatively low. Combined with the expiring tax credit, the timing to buy a home may be as good as it gets.

For more information about buying, selling, investing, or lending needs call The Real Estate Geeks 714-272-5369 or 714-720-2555

 

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Single-Family Housing Starts Hold Steady For The 8th Straight Month

Single-family Housing Starts idled last month, dropping just 3,000 units from the month prior, or 0.2%.

According to the Commerce Department's report, February marked the 8th straight month in which Housing Starts straddled the half-million marker, dating back to June 2009.

This is a different slant on the Housing Starts story as told by the press.

Most publications are reporting that Housing Starts fell 5.9 percent in February. Technically, this is true.  Housing Starts did fall 5.9 percent last month.  However, the Housing Starts data is comprised of three parts:

1. Single-Family Housing Starts
2. 2-4 Unit Housing Starts
3. "Apartment Building" Housing Starts (i.e. 5 or more units)

The press tends to lump all 3 together but that's not relevant for everyday homeowners and buyers. 

2-4 unit homes, and apartments and condos are a different housing class as compared to single-family homes and are notoriously volatile, too.  Single-family starts are more steady and better reflect the country's housing stock.

Single-family housing starts are up 32 percent over the last 12 months. 

Meanwhile, the pace of new buyers has not kept up with the pace of new housing stock. Therefore, because home prices are based on supply-and-demand, the price for a newly-built home was down, on average, 7 percent nationwide in January.

With the federal home buyer tax credit expiring soon, home buyers will likely create new demand for homes. And with Housing Starts holding steady near 500,000, that should push prices higher through the spring months.

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A Simple Explanation Of The Federal Reserve Statement (March 16, 2010 Edition)

Today, the Federal Open Market Committee voted 9-to-1 to leave the Fed Funds Rate unchanged, in its target range of 0.000-0.250 percent.

In its press release, the FOMC noted that the U.S. economy "has continued to strengthen" and that the jobs markets "is stabilizing".  It also said that business spending has "has risen significantly".

This is a slight departure from the Fed's January statement in which housing was not mentioned and business spending was said to be "picking up".

It's also the sixth straight statement from the FOMC in which the Fed described the economy with optimism.  This is a signal to markets that 2008-2009 recession is over and that economic growth is returning.

The economy is not without threats, however, and the Fed identified several:

1. High unemployment threatens consumer spending
2. Housing starts are at a "depressed level"
3. Consumer credit remains tight

The message’s overall tone, however, remained positive and inflation is within tolerance limits

Also in its statement, the Fed confirmed its plan to hold the Fed Funds Rate near zero percent “for an extended period” and to end its $1.25 trillion commitment to the mortgage market by March 31, 2010. Fed insiders estimate that the bond-buying program lowered mortgage rates by 1 percent since its start.

Mortgage market reaction to the Fed press release is, in general, ambivalent. Mortgage rates are unchanged this afternoon.

The FOMC’s next scheduled meeting is a 2-day affair, April 27-28, 2010.

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A Rate-Locking Strategy For Today's Fed Meeting

The Federal Open Market Committee adjourns from a scheduled 1-day meeting today, its second of the year. 

The FOMC has held the Fed Funds Rate in a target range of 0.000-0.250 percent since December 16, 2008, and the voting members of the Fed are expected to vote "no change" again today.

However, no change in the Fed Funds Rate doesn't necessarily mean no change in mortgage rates.  This is because the Fed Funds Rate is a different interest rate from the rates home buyers get from a loan officer. 

• Fed Funds Rate : Short-term rate at which banks borrow from each other
• Mortgage Rate : Long-term rate of interest a homeowner pays on a mortgage

Mortgage rates are more responsive to what the Fed says as compared to what the Fed does. 

After each FOMC meeting, Fed Chairman Ben Bernanke & Co issue a formal press release to the markets.  At roughly 400 words, the statement is a brief commentary on the strengths, weaknesses, and threats for the U.S. economy.

Wall Street watches the statement with great interest and this is why mortgage rates are often volatile on the days of an FOMC adjournment. One mention of a word like "inflation" and traders rush to dump their mortgage bond positions.

Inflation is the enemy of mortgage rates.

After the Fed’s last meeting in January, it told us that the economy had "weakened further", led by steep declines both in housing and employment. Global demand was off, too.  The negative tone of the Fed's statement caused mortgage rates to fall to near an all-time low.

This month, expect a less gloomy message.

Since January, there's been a modest rebound in housing, employment appears more stable, and Retail Sales just posted huge gains.  If the Fed alludes to improvement in any or all three, mortgage rates will likely reverse and zoom higher.

We can’t know what the Fed today will say so if you're floating a mortgage rate and wondering whether to lock, the safe approach would be to do it today, prior to 2:15 PM ET.

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15-Minute Fixes For Around The Home

Home maintenance is an ongoing project. There's always something to do around the house, or something to fix. The problem is, you may not have the time, or the skills, to get it done yourself.

In this 4-minute piece from The Today Show on NBC, you'll see some projects are quite simple.

Dubbed "15-Minute Fixes", see how simple it can be to handle 3 common household chores:

1. De-alcification of a shower head
2. Clearing hair from the inside of a bathroom drain
3. Sealing a granite counter-top

Each clean-up job is cheap, quick, and can be handled sans handyman. As Spring Fever sets in, put these fixes on your To-Do List.

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How To Refinance When Your Home Is Underwater

The Federal Housing Finance Agency has extended the government's Home Affordable Refinance Program by 12 months.

HARP's new end date is June 30, 2011.

Originally known as Making Home Affordable, HARP aims to help California homeowners refinance their mortgage who may otherwise be ineligible because of falling home values.

There are 4 basic HARP criteria every borrower must meet:

1. The existing 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 12 months. No 30-day lates allowed.
4. Your first mortgage balance must be 125% or less of your home's market value

If you're not sure whether Fannie Mae or Freddie Mac back your mortgage, you can look it up. Fannie's website is http://www.fanniemae.com/loanlookup; Freddie's is http://freddiemac.com/mymortgage.  If you don't locate your loan on either website, your mortgage is backed by a third-party and is not HARP-eligible.

For homeowners that meet HARP's criteria, there are some underwriting details of which to be aware.

First, if your original mortgage does not require mortgage insurance, your HARP mortgage will not require it, either -- regardless of your new loan-to-value.

Second, all HARP refinances require income verification. It doesn't matter if your original mortgage was a stated income or no income verification loan. You should expect to produce 1040s and W-2s for your HARP refinance and asset statements, too.

And, lastly, second (and third) mortgages may not be "rolled in" to a new first mortgage loan balance. Junior lien holders must agree to remain in a junior lien position, regardless of combined loan-to-value.

There is a thorough HARP FAQ section on the government's website, but it's for general questions only. For specific Home Affordable Refinance Program information, first make sure you're program-eligible, then pick up the phone to call your loan officer. 

HARP is complex enough that you'll want to talk with a human before taking a proper next step.

 

For more information regarding keeping your home and other options contact The Real Estate Geeks 714-720-2555 or email us at Help@TheRealEstateGeeks.Net

 

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Foreclosures Per Capita | February 2010

According to foreclosure-tracking firm RealtyTrac, foreclosure filings topped 300,000 for the 12th straight month last month as 1 in every 418 U.S. homes received a foreclosure filing.

It's a small improvement from January and a just 6 percent increase over February 2009.

On a per-capita basis, foreclosure density varied by state:

• Nevada : 1 foreclosure filing per 102 homes
• Florida : 1 foreclosure filing per 163 homes
• Arizona : 1 foreclosure filing per 163 homes
• California : 1 foreclosure filing per 195 homes

Also, as in January 2010, foreclosures across the country were concentrated. 10 states beat the national Foreclosure Per Capita average; 40 states fell below. Like everything else is real estate, it seems, foreclosures are local.

For today's home buyers, foreclosures represent an interesting opportunity. 

Homes bought in various stages of foreclosure are often less expensive than other, non-foreclosure homes. It's one reason why distressed home sales account for 38 percent of all resales. However, less expensive doesn't always mean less costly.  A foreclosed home may be in various stages of disrepair and they're often sold as-is, as policy.

Buying new or used can be cheaper than buying broken-down.

Therefore, if you're in the market for a bank-owned home, make sure you know what you're buying before you sign a contract. Have qualified professionals review and inspect the property, as needed. Damage to pipes or the property's structure, for example, may not be so obvious on a walk-though and you'll want to know about it before you buy.

Also, foreclosed homes are federal tax credit-eligible. Buyers must be under contract by April 30, 2010 and closed by June 30, 2010.

 

If you're having trouble making your mortgage payment you have options, but whatever you do don't let foreclosure be one of them. For more information about your options contact The Real Estate Geeks at 714-720-2555 or email us at Help@TheRealEstateGeeks.Net

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Don't Rush To Refinance That ARM -- It May Be Adjusting To 3 Percent Or Lower

If your mortgage is set to adjust this year, the smart move may be to let it. Today's conforming mortgages are adjusting lower than ever before -- as low as 3 percent.  It may not be what you expected when you signed for your ARM several years ago.

The reason why ARMs are adjusting lower is because of how they're made.

When conforming adjustable-rate mortgages adjust, they adjust according to a pre-determined formula. The formula is the sum of a constant and a variable.  The constant is usually 2.25 percent and the variable is a daily-changing interest rate called LIBOR.

The formula looks like this:

New Mortgage Rate = LIBOR + 2.250 percent

LIBOR is an acronym for London Interbank Offered Rate.  It's an interest rate at which banks borrow money from each other. In Fall 2008, when Lehman Brothers fell and sparked a global banking fear, LIBOR spiked as the risk of inter-bank borrowing jumped. 

Since then, however, LIBOR is down.

Normalcy is returning to banking and the timing couldn't be better for homeowners with ARMs. 15 months ago, a homeowner's ARM may have adjusted to 6 1/2 percent.  Today, that same ARM falls to just above 3.

As a strategy play, it might make sense to let your ARM adjust. Or, because fixed rates are still near 5 percent, converting that ARM to a long-term fixed-rate product might make sense, too.  The decision is a balance between how low do you want your payment, and how long might you live in your home.  

The longer you stay, the more it might make sense to switch to fixed-rate, even though ARM rates are so low.

If you've got an adjusting ARM, talk to your loan officer about your choices. Once March ends and the Fed withdraws its mortgage market support, mortgage rates may rise and the fixed-rate option may be gone.

 

For more information about loan options contact The Real Estate Geeks today because knowing what all of your options are will allow you to know what's in your best interest. Loans@TheRealEstateGeeks.Net

 

If you having a financial hardship we can help you too... Just give us a call 714-272-5369 or email us at Help@TheRealEstateGeeks.Net

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