The Real Estate Geeks - How To Replace And Install A New Kitchen Faucet

Want to replace your kitchen faucet? It's a job for which you could hire a plumber, or, with just a little bit of craftsman skill, it's a project you could finish yourself.

Watch this video from the Lowe's YouTube channel. You'll get step-by-step instruction on how to take out an old faucet and how to install a new one. The supplies you'll need are minimal, too.

In 3 minutes, the video covers:

• How to shut the kitchen water supply off and drain residual water from the pipes
• How to detach and remove the old kitchen faucet
• How to align the new faucet and reconnect to the water lines

There's some good tips along the way, too, including how to make sure you don't accidentally connect the hot water supply to the cold-water faucet.

If you're uncomfortable working with your home's plumbing and would like a referral to a plumber , please just ask. I'm happy to help how I can.

Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today Just visit our site at http:www.TheRealEstateGeeksTv.com until Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

The Real Estate Geeks - Mortgage Rates Return To April 2010 Levels

Mortgage rates are surging.

Over the last 7 days, conventional, 30-year fixed rate mortgage rates have jumped 24 basis points, or 0.24%, according to Freddie Mac's weekly Primary Mortgage Market Survey.

It's the largest 1-week spike in mortgage rates in recent history.

The 30-year fixed rate mortgage now averages 5.05% nationally. This is much, much higher than what we saw last November when mortgage rates were 4.17% and looked headed to the 3s.

That's not the case today. In fact, it's the opposite. 

Mortgage rates have risen quickly and fiercely this year. As of this morning, mortgage rates are higher over 9 consecutive days, marking the longest mortgage rate losing streak in the last 6 years, at least.

Note, however, that when you call your loan officer or bank, you may not be quoted the same 5.05% rate as shown by Freddie Mac. This is because Freddie Mac-reported rates are national averages. Any given mortgage rate may be higher or lower depending on its region. 

As an illustration, look how this week's rates breaks down by area:

• Northeast : 5.07 with 0.7 points
• Southeast : 4.99 with 0.9 points
• North Central : 5.09 with 0.6 points
• Southeast : 5.06 with 0.6 points
• West : 5.02 with 0.8 points

In other words, the rate-and-fee combination you'd be offered in your home town is different from what you'd be offered if you lived somewhere else. In the Southeast, rates tend to be low and fees tend to be high; in the North Central U.S., it's the opposite.

The good news is that, as a mortgage applicant, you can have your pricing whichever way you prefer. If getting the absolute lowest mortgage rate is what's most important to you, have your loan officer structure your loan as in the "Southeast Style". Or, if you prefer to have as few closing costs as possible and don't mind slightly higher rates, ask for that type of set-up instead.

Either way, consider locking your rate as soon as possible. If rates keep rising, it won't be long before they touch 6 percent.

Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today Just visit our site at http:www.TheRealEstateGeeksTv.com until Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

The Real Estate Geeks - Foreclosure Activity Drops Throughout The Most Foreclosure-Heavy States

Foreclosure activity is slowing. According to foreclosure-tracker RealtyTrac, the number of foreclosure filings dropped 17 percent on an annual basis last month. Monthly filings ticked higher 1 percent after a combined 23 percent decrease through November and December 2010.

The phrase "foreclosure filing" is a catch-all term, comprising default notices, scheduled auctions, and bank repossessions. 

January marked the third straight month of sub-300,000 filings after 20 straight months above it.

As compared to January 2010, six of the nation's 10 most foreclosure-heavy states posted an annual foreclosure filing reduction. The remaining four showed modest worsening.

It's noteworthy that states like California and Florida posted declines of 7 percent and 54 percent, respectively, and that Nevada posted a relatively-low 3 percent gain. These three states have been at the leading edge of foreclosure activity since 2007. Their subsequent recoveries, therefore, may foreshadow a better housing market ahead.

Or, this may be lasting effects from the "robo-signer" controversy.

Regardless, home buyers in California continue to clamor for distressed homes.

According to the National Association of REALTORS®, properties in various stages of the foreclosure and short sale process are selling at discounts in the range of 10-15 percent so it's no wonder they now account for 36 percent of all home resales. Buying a foreclosure can be a great "deal".  They can be more trouble and cost than they're worth.

Therefore, If you're in the market for a foreclosed home , be sure to speak with a licensed real estate agent. The process of buying a distressed home is different from buying a non-distressed home. An experienced professional can help make sure you negotiate your best possible price.

Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today Just visit our site at http:www.TheRealEstateGeeksTv.com until Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

The Real Estate Geeks - Adjustable Rate Mortgages Adjusting To 3.000 Percent Right Now

If your ARM is due to adjust this spring, your best move may be to allow it. Don't rush to refinance -- your rate may be adjusting lower.

It's because of how adjusted mortgage rates are calculated.

First, let's look at the lifecycle of a conventional, adjustable rate mortgage:

1. There's a "starter period" of several years in which the interest rate remains fixed.
2. There's an initial adjustment to rate after the starter period. This is called the "first adjustment".
3. There's a subsequent adjustment until the loan's term expires. The adjustment is usually annual.

The starter period will vary from 1 to 10 years, but once that timeframe ends, and the first adjustment occurs, conventional ARMs enter a lifecycle phase that is common among all ARMs -- regular rate adjustments based on some pre-set formula until the loan is paid in full, and retired.

For conventional ARMs adjusting in 2011, that formula is most commonly defined as:

(12-Month LIBOR) + (2.250 Percent) = (Adjusted Mortgage Rate)

LIBOR is an acronym for London Interbank Offered Rate. It's the rate at which banks borrow money from each other. It's also the variable portion of the adjustable mortgage rate equation. The corresponding constant is typically 2.25%.

Since March 2010, LIBOR has been low and, as a result, adjusting mortgage rates have been low, too.

In 2009, 5-year ARMs adjusted to 6 percent or higher. Today, they're adjusting near 3.000 percent.

That's a big shift. 

Therefore, strictly based on mathematics, letting your ARM adjust this year could be smarter than refinancing it. You may get yourself a lower rate.

Either way, talk to your loan officer. With mortgage rates still near historical lows, homeowners have interesting options. Just don't wait too long. LIBOR -- and mortgage rates in general -- are known to change quickly.

Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today Just visit our site at http:www.TheRealEstateGeeksTv.com until Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

The Real Estate Geeks - Home Remodeling Projects That You Should Skip

Home remodeling is back in vogue.

With contractors dropping prices in most U.S. markets, and a resurgence in confidence among homeowners, home remodeling projects are expected to top $125 billion this quarter.

Not all renovations will be "worth it", according to Remodeling Magazine's 2011 Cost vs Value report, but some projects should never be started -- especially when said projects render a home somewhat un-sellable.

For example, if installing a new toilet requires that the discharge pipes run along the living room ceiling, the project should be re-engineered, or skipped entirely.

A recent renovation article on CNNMoney.com listed several others "never do" projects.

• Don't add a 4th/5th bedroom to a home with just one bathroom.
• Don't build a bedroom with no closet space.
• Don't make common rooms disproportionately large or small to one another.

And, for all projects, no matter what the details, try to keep the home's traffic flow intact. Nobody likes to walk through bedrooms to get from the kitchen to the living room.

Home remodeling can be a less expensive alternative to moving, and can improve a property's resale value. But keep in mind -- just because a project is featured on HGTV, for example, that doesn't make it a Do-It-Yourself. Some projects can be handled on your own, but most should not.

With the help of a professional, you'll be sure the job is done properly.

If you need the name of a local contractor or specialist, please reach out anytime. I am happy to help you with a referral.

Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today Just visit our site at http:www.TheRealEstateGeeksTv.com until Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

The Real Estate Geeks - Unemployment Rate Drops To Lowest In 2 Years

Americans are getting back to work. Sort of.

This morning, at 8:30 AM ET, the Bureau of Labor Statistics released its Non-Farm Payrolls report for January 2011. More commonly called "the jobs report", the government's data showed a large decrease in the number of working Americans as compared to December, but a sizable drop in the Unemployment Rate.

The job growth figures were much lower than consensus estimates:

• Expected job growth in January : +148,000 jobs
• Actual job growth in January : +36,000 jobs

January's Unemployment Rate surprised analysts, too, but not in a bad way, falling from 9.4 percent in December to 9.0 percent last month. This is the nation's lowest Unemployment Rate in nearly 2 years.

Today's jobs report is rough news for home buyers and rate shoppers. Shortly after the report's release, Wall Street is attributing the low jobs number to "bad weather" and is choosing to focus on the strong Unemployment Rate instead.

U.S. stock futures are now rising ahead of open, an increase that will come at the expense of the bond markets. Indeed, mortgage-backed bonds are losing this morning already.

Conforming mortgage rates are expected to start the day at least +0.125% from Thursday's close and, if momentum continues, could tack on an additional +0.125% before today's closing bell.

The government's report is an excellent example of how important jobs data can be to home affordability -- especially in a recovering economy.

The economy shed 7 million jobs between 2008 and 2009 and fewer than 1 million of those were recovered in 2010. It's a data point Wall Street watches closely because more working Americans means more consumer spending, and more consumer spending means more economic growth. Consumers account for 70% of the U.S. economy, after all.

More workers also means more taxes paid to federal, state and local government, and, in theory, fewer loan charge-offs from banks. These, too, keep the economic engine moving forward, spurring more spending and job growth. 

If you have not yet locked a mortgage rate, consider locking one today. On the heels of today's jobs data, 30-year fixed rates will scratch at their highest levels of the year.

Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today Just visit our site at http:www.TheRealEstateGeeksTv.com until Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

The Real Estate Geeks - Mortgage Guidelines Starting To Loosen?

Mortgage lending appears to be loosening. At least for now.

In its quarterly survey of member banks, the Federal Reserve asks senior loan officers around the country whether their "prime" residential mortgage guidelines had tightened within the last 3 months.

A prime borrower is one with a well-documented credit history, high credit scores, and a low debt-to-income ratio.

Of the 54 responding banks, just 2 said its guidelines had tightened during the period October-December 2010. That's less than 4 percent. And, by comparison, 95 percent of banks said guidelines remained "basically unchanged".

The remaining banks reported a loosening.

It's a positive sign for the housing market, and for home buyers nationwide. If banks have stopped raising the hurdles of home loan approval, in theory, more would-be buyers will be approved.

It's much tougher to get a home loan versus 5 years ago. Delinquencies and defaults have changed how banks review loan applications. Today's underwriters are more conservative with respect to household income, total assets and overall credit scores.

Even as compared to January 2010, approval standards are higher : 

• Minimum credit score requirements are higher
• Downpayment/equity requirements are larger
• Maximum allowable debt-to-income ratios have been lowered

Although mortgage rates remain low, qualification standards do not. Based on last quarter's banking survey, however, mortgage applicants in California may find approvals easier to come by soon. Low rates don't matter, after all, if you're not eligible to get them.

The housing market is strong and lending looks to be loosening. It should help fuel the demand for homes in 2011, which will push supplies down and lead prices up. For homeowners that qualify, therefore, the best time to purchase a home may be sometime this spring.

Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today Just visit our site at http:www.TheRealEstateGeeksTv.com until Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

The Real Estate Geeks - Practical Advice : How To Help Your Home Sell Faster

In December, home sales reached an 8-month high, recovering from the losses of last summer. Market momentum is positive across California , but that doesn't mean every home is selling quickly -- only some of them are.

So, if you're a home seller and want (or need) to get your home sold quickly, take a listen to this 3-minute interview from NBC's The Today Show. It's loaded with practical sales advice for sellers.

As examples:

• How to price your home relative to comparable homes for sale
• Using home inspections to keep your contract on-track for closing
• How much should be spent on your "home photos" that are shown online

The interview also covers about the 3 key places of a home on which to spend money -- the kitchen, the living area, and the front facade. And for good reason -- they're emotional hooks for buyers that help sell homes.

In any market, selling a home can be a challenge. It can be easier by applying common sense.

Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today Just visit our site at http:www.TheRealEstateGeeksTv.com until Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

The Real Estate Geeks - Pending Home Sales At The Highest Levels Since April 2010

Another day, another strong report for housing.

The Pending Home Sales Index climbed 2 percent in December, according to the National Association of REALTORS®. A "pending home sale" is an existing home under contract to sell, but not yet closed.

Pending Home Sales are up for the fifth time in 6 months. The December reading is now its highest since the federal home buyer tax credit's April 2010 contract deadline, and the figure is well north of the Pending Home Sales Index 3-year average.

Coupling this data with December's strong Existing Homes Sales report (+12%) and its strong New Home Sales report (+17%), it's clear that the housing market has past its trough and is in Recovery Mode.

Even consumer confidence is at an 8-month high.

On a regional basis, December's Pending Home Sales Index varied as compared against November. The South region led the way, and the West region lagged.

• Northeast Region: +1.8%
• Midwest Region : +8.0%
• South Region : +11.5%
• West Region : -13.2%

Home buyers would do well to study last month's Pending Home Sales Index. It offers clues of what to expect during the spring buying season. For example, according to the National Association of REALTORS®, 80 percent of homes under contract close within 60 days.

Therefore, we can look at the December Pending Home Sales Index and project, with a high level of confidence, that home sales will be higher throughout February and March on a units-basis.

Furthermore, because the Existing Home Sales and New Home Sales reports show that housing stock is falling nationwide, spring buyers will notice find more competition for the available housing stock. As the Supply-and-Demand curve shifts towards sellers, home prices rise.

In other words, there's no rush to buy a home, but as the year progresses, home prices are expected to rise, as are mortgage rates. This one-two combination will impact home affordability negatively. And the higher that mortgage rates go, the worse the damage.

Your home-buying dollar won't go as far in 2011's second half as it will go right now. If you have plans to buy a home in 2011, consider moving up your time-frame.

Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today Just visit our site at http:www.TheRealEstateGeeksTv.com until Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

The Real Estate Geeks - Use An Automatic Stirrer To Keep Foods From Burning And Pots From Scorching

It doesn't take much effort to stand over a pot and "stir continuously", as called for in some recipes. It can be tedious, though, and once a chef stops stirring or leaves a pot unattended, the recipe is sure to ruin.

Enter the automatic stirrer.

With its self-adjusting, self-centering blades, the Ardenté Gourmet Stirrer latches on to the side of most kitchen bowls, and does that stirring for you. The machine's constant blade-turning protects your milk-based recipes from burning; your sauce-based recipes from charring; and your temperate-sensitive sugars from caramelizing.

While it does its job, you're freed up to tend to other tasks in the kitchen, or to spend time with family around the house.

It protects your pots from scorching, too.

The Ardenté Gourmet Stirrer runs on 4 C batteries and can be run continuously, or intermittently. Its blades run at different heights to promote consistency, and are dishwasher-safe for easy clean-up.

You can buy the automatic stirrer in white or black on Ardenté's website, or on Amazon. It retails for $59.95.

Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today Just visit our site at http:www.TheRealEstateGeeksTv.com until Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

The Real Estate Geeks - The Home Price Index Shows Flat For November

Home values were reported unchanged in November 2010, on average, according to the Federal Home Finance Agency's Home Price Index. 

We say "on average" because the government's Home Price Index is a data composite for the country. The index doesn't measure citywide changes , nor does it get granular down to the neighborhood level.

Instead, the Home Price Index groups state data in 9 regions with each regions having as few as 4 states in it, and as many as 8.

Not surprisingly, each of the regions posted different price change figures for the period of October-to-November 2010.

A sampling includes:

• Values in the Pacific region rose +1.2%
• Values in the New England region rose +0.3%
• Values in the Mountain region fell -1.9%

The complete regional list is available at the FHFA website.

That said, none of these numbers are particularly helpful to today's home buyers and sellers and that's because everyday people don't buy and sell homes on the Regional Level. We do it locally and the government's Home Price Index can't capture data at that level.

It's a similar reason to why the Case-Shiller Index is irrelevant to buyers and sellers.

November's Case-Shiller Index showed home values down 1 percent in November, but that conclusion is a composite of just 20 cities nationwide -- and they're not even the 20 largest cities. Philadelphia, Houston and San Jose are conspicuously absent from the Case-Shiller list.

So why are reports like the Home Price and the Case-Shiller Index even published at all? Because, as national indicators, they help governments make policy, businesses make decisions, and banks make guidelines. Entities like that are national and require data that describe the economy as a whole. Home buyers and sellers, by contrast, need it locally.

Since peaking in April 2007, the Home Price Index is off 14.9 percent.

Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today Just visit our site at http:www.TheRealEstateGeeksTv.com until Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

The Real Estate Geeks: How To Keep Your Granite Countertops From Getting "Cloudy"

Granite is a popular "finishing choice" for homeowners because of its good-looks and its strength. A well-maintained granite counter-top boasts natural beauty and outlasts most other finishes.

But granite is also natural rock, mined from the earth. It's porous and highly absorbent.

Therefore, if your home features granite in its kitchen, its bathrooms, or other living spaces, you'll want to make sure the counter-tops are cared for to prevent staining and/or clouding over time. 

The first step is to seal your countertops every 12 months -- 6 months in areas of heavy use.

Sealing a counter-top is akin to applying polyurethane to hardwood flooring; it protects the material's natural traits, while keeping out "the elements". Specifically, sealing granite creates a non-porous layer on the surface that is impenetrable to juice and grease, as examples.

Sealant can be purchased at a local hardware store, or on Amazon.com. Prices start around $10. Just make sure you're following the manufacturer's application instructions. Sealant won't work if applied improperly.

Then, once sealed, avoid harsh cleansers. Instead, opt for a warm sponge and mild detergent. Cleaning with soap will help leave a reflective finish on the surface that will not strip the seal. Using soap also prevents the "cloudy counterspy" condition that's so common with granite.

And, lastly, every day, take preventative measures to keep your granite shining. Just because a countertop is sealed, that doesn't mean it's immune to damage. Use coasters under beverages, put hot plates under dishes, and clean up spills as they happen. 

A granite counter-top will last years will proper care.

Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today Just visit our site at http:www.TheRealEstateGeeksTv.com until Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

The Real Estate Geeks: Home Supplies Plummet, Putting Pressure On Prices To Rise

Existing Home Sales surged 12 percent last month, closing 2010's housing market with strength. An "existing home" is a home that cannot be categorized as new construction; a resale.

According to the National Association of REALTORS®, seasonally-adjusted, annualized Existing Home Sales figures climbed by more than a half-million units in December as compared to November. It's the 3rd straight month of home resale improvement nationwide.

Sales volume is now as high as it's been since May 2010 -- just after the federal home buyer tax credit's expiration.

In addition, the number of months needed to sell the complete, current home inventory at the current pace of sales fell by 1.4 months, tying December for the biggest one-month home supply improvement in 2 years.

It's yet another signal that the housing market is in recovery. Not that this data should surprise anyone. November's Pending Home Sales report told us to expect it two weeks ago.

Broken down by buyer-type, home sales split as follows:

• First-time home buyers : 33% of all sales
• Repeat buyers : 47% of all sales
• Real estate investors : 20% of all sales

Cash buyers represented 29 percent of all transaction, down 2 ticks from November. This may suggest that mortgage guidelines are loosening -- another sign of economic improvement.

So, take note, home buyers. This spring, along with mortgage rates, home values should rise, too. Expect less "bang for your buck" as the housing recovery takes hold across the nation.

The best deals of the year may be the ones made this month.

Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today Just visit our site at http:www.TheRealEstateGeeksTv.com until Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

The Real Estate Geeks: Is This Home Renovation Going To Be Worth It?

Home remodeling projects can add function to a home, but don't always add value. Consider the latest report from Remodeling Magazine. 

In it, the average cost of 35 projects are evaluated for the value they retain at the time of resale. Function beats flash, it seems, in today's housing market.

Expansive kitchens and custom vanities are returning less value to homeowners  on a percentage basis than energy-efficient doors and windows, for example.

A sampling of Remodeling Magazine's Cost vs Resale report shows the following cost recovery, by project:

• Attic Bedroom Remodel : 79.90 percent cost recovery
• Bathroom Addition : 74.90 percent cost recovery
• Bathroom Addition (Upscale) : 72.80 percent cost recovery
• Home Office Remodel : 63.40 percent cost recovery
• Minor Kitchen Remodel : 85.20 percent cost recovery
• Major Kitchen Remodel : 75.90 percent cost recovery
• Roofing Replacement : 73.90 percent cost recovery
• Window Replacement (Wood) : 85.30 percent cost recovery

Overall, "green" projects are returning a high percentage of costs to remodeling homeowners -- especially for respect to homes that are "over-improved" with respect to the neighbors.

CNNMoney.com hosts a "Will This Renovation Pay Off?" calculator on its website, based on the data from Remodeling Magazine's annual report. It may be a helpful guide for you. That said, before starting a home improvement project, regardless of whether your goal is increase your home's resale value or to improve its function, be sure to talk with a real estate agent that knows your neighborhood well.

At worst, you'll gain insight to what's "typical" for your area to work into your plan, and, at best, you'll keep yourself from over-improving your home.

Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today Just visit our site at http:www.TheRealEstateGeeksTv.com until Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

The Real Estate Geeks: Comparing Mortgage Rates For Adjustable- And Fixed-Rate Mortgages

For some homeowners, electing to take an adjustable rate mortgage over a fixed rate one can be matter of budgeting. ARMs tend to carry lower mortgage rates and, therefore, lower monthly mortgage payment as compared to a comparable fixed rate loan.

Relative to fixed rate mortgages, current ARM pricing is excellent. Freddie Mac's weekly Primary Mortgage Market Survey puts the 5-year ARM mortgage rate lower than the 30-year fixed rate mortgage rate by 1.02 percent.

On a $250,000 home loan, a 1.02 differential yields a payment savings of $149 per month.

ARMs are not for everyone, of course. Over time their rates can change and that can frighten people. An ARM can finish its respective 30-year lifespan with a mortgage rate as much as 6 percentage points higher from where it started. Some homeowners won't like this.

Other homeowners, however, won't mind it. For this group,  the ARM can be a terrific fit. Especially with the huge, relative discount in today's pricing.

A few scenarios that should warrant consideration of a 5-year ARM include homeowners that are:

1. Buying a new home with the 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; comfortable with longer-term rate and payment uncertainty

In addition, homeowners with existing ARMs due for adjustment may want to refinance into a new ARM, if only to push the first adjustment date farther into the future.

Before choosing to go with an ARM, speak with your loan officer about how adjustable rate mortgages work, and their near- and long-term risks. Payment savings may be tempting, but with an ARM, payments are permanent.

Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today Just visit our site at http:www.TheRealEstateGeeksTv.com a Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

The Real Estate Geeks: How To Renegotiate Your Credit Card Interest Rates To Something Lower

Credit card debt, left unchecked, can pile up quickly. Especially for debtors making minimum payments.  

According to the Federal Reserve, a credit card balance of $5,000 at 23.99 percent APR won't pay off for 16,127 years. That's one reason why it's important to manage your credit card rates, and renegotiate them whenever possible.

In this 4-minute piece from NBC's The Today Show, you'll learn the tested tactics that can cut a credit card rate, and get monthly payments to a more manageable range. And it's do-it-yourself -- no debt management firms required.

Some of the tips in the video include:

• Compare your current rate to the rate offered to new customers. Ask the lender for "new customer rate" if it's lower.
• If your credit score has improved since application, ask for an interest rate more reflective of your current credit score.
• Be nice to the customer service representative. Kindness helps.

Managing debt is an important part of household budgeting so if you're finding your credit card payments and/or rates too high for your liking, try following the instructions as described in the video. And, above all else, be persistent. The credit card companies won't likely approve your first request. 

Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today Just visit our site at http:www.TheRealEstateGeeksTv.com a Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

The Real Estate Geeks - How To Repair A Scratched CD, DVD, Or Game Disc

When your CDs, DVDs and game discs are "skipping", most times, a simple cleaning will set them right.

Make sure you clean your discs properly, though. Clean them the wrong way and you could damage your discs forever. You might also cause your electronic devices permanent damage.

There's lots of remedies for skipping CDs, DVDs, and game discs, but the following method is known to be reliable for all but the toughest scratches and dings.  First, you'll need some tools:

1. A flat surface
2. A soft, lint-free cloth
3. Specialized cleaning solution, or plain rubbing alcohol

Take the cloth and, holding the disc between your thumb and forefinger, wipe from the center to the edge in a straight line. Repeat this step until you've removed all of the surface dust from the disc.  Next, apply the cleaning solution (or rubbing alcohol) to the cloth directly and wipe the disc in the same manner -- from center to edge.

Lastly, lay the disc flat and allow it to dry.

If the above method does not repair your disc(s), consider an off-the-shelf, disc repair system for more heavy-duty scratches. Disc repair products can look expensive with prices tags as high as $60, but as compared to the cost of buying new music, movies, or games, the investment could make sense. Just make sure to read product labels for their limitations before purchasing.

Thanks for checking out our videos & blogs - Don't forget to subscribe to our site its super easy to do and it's FREE! Just visit our site at http:www.TheRealEstateGeeksTv.com and fill in your email address in the empty subscribe box found at the top right hand side of your screen then just click subscribe. Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

The Real Estate Geeks: December's Job Report : Good For Home Affordability

On the first Friday of each month, the Bureau of Labor Statistics releases its Non-Farm Payrolls report.

More commonly called "the jobs report", the government's data include raw employment figures and the Unemployment Rate.

The jobs report hit the wires at 8:30 AM ET today. It's making big waves in the mortgage market and may help home affordability for buyers this weekend, and would-be refinancers across California.

For this month, and for the rest of 2011, employment data will figure big in mortgage markets.

7 million jobs were lost in 2008 and 2009. Fewer than one million jobs were recovered in 2010. For the economy to fully recover, analysts believe that jobs growth is paramount.

Consider how job creation influences the economy:

1. More jobs means more income and more spending
2. More spending means more business growth
3. More business growth means more job creation

It's a self-reinforcing cycle and, as business grows, the economy expands, pushing stock markets higher. This tends to lead mortgage rates higher, too, because bonds can lose their appeal when stock markets gain.

According to the government, 103,000 jobs were created in December, and October's and November's figures were revised higher by a net 50,000 jobs for a total of 153,000 new jobs created. Economists expected a net gain of 135,000.

The Unemployment rate fell to 9.4, its lowest level since mid-2009.

Wall Street is voting with its dollars right now. Mortgage bonds are improving, pointing to slightly lower mortgage rates today.

The December jobs report was "average", and home affordability is improving.

Thanks for checking out our videos & blogs - Don't forget to subscribe to our site its super easy to do and it's FREE! Just visit our site at http:www.TheRealEstateGeeksTv.com and fill in your email address in the empty subscribe box found at the top right hand side of your screen then just click subscribe. Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

The Real Estate Geeks: Loan Costs Increasing April 1, 2011

Starting April 1, 2011, loan-level pricing adjustments are increasing. Most conforming mortgage applicants will face higher loan costs.

Loan-level pricing adjustments are mandatory closing costs. They're assigned by Fannie Mae and Freddie Mac, and based on a loan's specific risk to Wall Street investors.

First constructed in April 2009, loan-level pricing adjustment are a means to help Fannie Mae and Freddie Mac compensate for "riskier loans" by bolstering their respective balance sheets.

Since the initial roll-out, Fannie and Freddie have amended adjustments five times. The pending April adjustment will be the 6th revision in two years.

No class of conforming borrower is exempt from LLPAs. Each loan delivered to Fannie Mae is subject to a quarter-percent "Adverse Market Delivery Charge". That cost is often absorbed by the lender.

The remaining adjustments are grouped by category:

1. Credit Score : Lower FICO scores carry bigger adjustments
2. Property Type : Multi-unit homes carry bigger adjustments
3. Occupancy : Investment properties carry bigger adjustments
4. Structure : Loans with subordinate financing may carry bigger adjustments
5. Equity : Loans will less than 25% equity carry bigger adjustments

LLPAs are cumulative. A borrower that triggers 4 different categories of risk must pay the costs associated with all four traits.

Loan-level pricing adjustments can be expensive -- as much as 3 percent of your loan size in dollar terms.  As an applicant, you can opt to pay these costs as a one-time cash payment at closing, or you can to pay them over time in the form of a higher mortgage rate. 

The loan-level pricing adjustment schedule is public. You can research your personal scenario at the Fannie Mae website. However, you may find the charts confusing. Especially with respect to which route makes the most sense for you -- paying the adjustments as cash, or paying them "in your mortgage rate".

Phone or email your loan officer for help.

Thanks for checking out our videos & blogs - Don't forget to subscribe to our site its super easy to do and it's FREE! Just visit our site at http:www.TheRealEstateGeeksTv.com and fill in your email address in the empty subscribe box found at the top right hand side of your screen then just click subscribe. Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks