11. June 2011 by Michael McFarlane.

Consumer borrowing and credit has become a major issue in the United States.  While this is hardly news to most, this fact may be.  Most home purchases within the last year have resulted in the borrower paying out more than 1/3 of their income to credit debt.

A new proposal would prohibit high debt borrowers for getting premium rates on their home mortgages.  The idea is to get credit debt (including the mortgage) below that 1/3 level.  The proposal also calls for a minimum of 20% cash down payment to qualify for the best interest rates on a mortgage.

While the increased down payment requirement has captured the press of late, the restricted debt limits would have the greatest restrictive effect according to some.  The new limits would be for a combined credit cap at 36%.  This includes the new mortgage, car loans, credit cards and revolving credit, students loans, etc.  There would also be a limit on just the mortgage payment itself of 28% of the borrower’s income.

Research by CoreLogic shows nearly 3/5 of home mortgages sold to Fannie Mae & Freddie Mac last year would not qualify under the new regulations.  Another analysis showed that MORE THAN 1/2 of mortgages sold in 2009 would fail to qualify under the proposed limits.

Most would agree that the system needs to have better protections to prevent a repeat of the recent (current?) crash/crisis.  But, some argue, other factors should be considered and figure into these limits.  Some feel that a high credit score might allow a higher limit.  Other conditions might also apply.  There are other conditions attached to these proposals governing how lenders sell their loans and more (read more about that in the source link below). 

$ source: the Washington Post ð

What is YOUR opinion? We’d love to hear from you!  Do you have questions about YOUR best action? Contact us today for your free, no obligation consultation.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below. Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

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Posted in Finance | 1 Comment »

4. June 2011 by Michael McFarlane.

Can you believe it?  Interest rates were below 5% and are DROPPING!  Zero down loans, bargain loan rates, low selling prices, large inventory to choose from…  Could there be a better time to buy?

The 10 Year Treasury Note has dropped below 3%.  This is a leading backing to the home lending rates.  According to a recent survey from Freddie Mac “typical” interest rates on 30 year fixed rate loans are down to 4.55%.  That is the lowest since December of 2010.

15 year fixed loans drop to less than 3.75%.  That is the lowest since November of 2010.  The numbers given have were by owners placing 0.6% lender fees for the 30 years loans and 0.7% for the 15 year mortgages.

Is this starting a mad rush to refinance?  According to Freddie Mac when rates dropped this low last year refinance applications surged on both occasions.  So far that has not happened.  According to the weekly survey by the Mortgage Bankers Assn., applications for refinance fell 4% the last week of May from the previous week.  Currently they are down by 5.7%.

The last time rates were down this low refinance volume was up 20% according to Mike Fratantoni, a vice president of the trade group.  The reason may very well be the fact that many who would refinance can not.  Many are so far under water (loan balance less than current market value) that refinancing is not an option.

$ sources:  Los Angeles Times  ð
$                  Freddie Mac survey ð

Is this for you? Questions about YOUR best action? Contact us today for your free, no obligation consultation.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below. Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

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17. May 2011 by Michael McFarlane.

It is an all-too-common problem today.  A buyer would like to purchase your home but they can’t get a loan through the conventional avenues.  Maybe a temporary job loss or reduction has put them behind in payments.  Or even worse (from the bank’s point of view) they were recently foreclosed upon.

But you know these people.  They are not flakes!  How do you get them into the home you are selling if the banks won’t finance them?  It is called “owner financing”!  This is not a new concept, in fact it is how I purchased my first home.  This alternative method of financing is gaining in popularity again.

It is not without risk, and is not for the faint of heart.  However, if you are in the position to manage it, or even if the position you are about to be in dictates you do it, it can work very well.  Is it for everyone?  NO!  Every buyer?  NO!  Every seller?  Again, no.  But there are cases where it works well for both sides.

According to Realtors® Property Resource 52,991 homeswere financed with some sort of owner financing last year.  That’s up 56% from previous years, and 1.5% of all home sales in the U.S. for 2010! 

$ read more: San Francisco Chronicle ð

Is this for you?  Questions about YOUR best action?  Contact us today for your free, no obligation consultation.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below. Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

Subscribe to Listings Updates              Free Home Warranty

      Search the MLS          Over the Back Fence

Home Rescue Group                Free Home Market Analysis

              Yuba-Sutter Real Estate Today

Posted in Finance | 1 Comment »

22. April 2011 by Michael McFarlane.

If you buy into what some reports are saying this would appear to be the case.  At first glance this might look to be the sensible thing to do.  After all the bad press the housing market has gotten of late, it is little wonder.  After all, isn’t the housing market crash the cause of the economic situation we are in right now?

NO!  We don’t think so.  In fact, we would like to propose another idea.  Could it not be said that the housing market is a victim of the crash?  And the crash was actually caused by the uncontrolled over-inflation of the boom?  Most (all?) investments carry risk.  The greater the reward, the greater the risk. It is the natural law.

Naturally, when one looses their income they loose the ability to make their mortgage payments.  Had everyone’s income increased at the rate housing costs did, the problem would not have happened!  And it seems that for the last few years the real estate industry has definitely been the “red-headed stepchild”.  We have surely had our time in the spotlight.

In reality, we do think that the economic troubles faced by all of us were caused by a number of contributing factors.  The run-away price increases in the housing market played a part.  But the original question was “Rent or BUY?”.  Even with the current turmoil, real estate is still ahead of other investments in GAINS.  That is correct, gains, increases, profits.

To get more on this (and from someone other than us) click the “read more” link below.  I think you will be pleasantly surprised.  Happy reading.

$ read more: Bloomberg  ð

Questions about YOUR best action? Contact us today for your free, no obligation consultation.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below. Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

Subscribe to Listings Updates                          Free Home Warranty

Search the MLS                           Over the Back Fence

Home Rescue Group                                    Free Home Market Analysis

Yuba-Sutter Real Estate Today

Posted in Finance | 1 Comment »

19. April 2011 by Michael McFarlane.

We know that everyone reading this blog has already filed their taxes, right?  Not everyone?  The good news is that the government has given us an extra couple of days by taking a day of.  The bad news?  Only that today is IT!  Might as well just get them done.  They aren’t going to go away.  At the very least get that extension filed.

Don’t know where to find your forms?  Our experience has been that everything you want (and a lot more) can be found at IRS.gov.  A simple Google search is my preferred method of finding something in particular.

You still have questions about what is and is not deductible?  While it is getting pretty late for this kind of research, you can find a lot of answers on the IRS’s own site.  You might also refer back to many of the posts made right here.  While we are not CPAs, we try to keep abreast of the laws relevant to our industry.  Be sure to consult your tax advisor for specifics.

Too late to find a CPA?  Sorry about that, we can’t help you there.  We do know there are free programs available on line if your needs are relatively simple, and paid versions for those that don’t quite fit that category.  You can also download the needed forms, print them out for completion, and mail them.  While many options are available, they won’t do themselves.

And for those of you who have completed your returns: congratulations!  Doesn’t it feel good to know that you have done your part?  At least that you don’t have to worry about penalties and fines now?  And now, if you will excuse us, we need to get busy on our own…

Posted in Finance | No Comments »

13. April 2011 by Michael McFarlane.

This morning I posted this question on our facebook page.  There seems to still be a lot of controversy over that question.  Indeed, ARMs have been blamed for the current financial melt-down.  It seems that most of what we hear from the news is negative on this issue.  We would like your opinion.

Does the home buyer planning to live in their new home making payments for 30 years benefit from an ARM?  What about the investor who wants to remodel the home, then sell it, all within a very short time?  Or the home buyer that knows they will be moving on in 3-5 years?

Here is another reason you might consider an ARM.  To pay your new purchase off sooner and for less money!  Yes, faster and cheaper!  No, it’s not hype, nor am I trying to sell you an ARM (although we do handle them).  Rather that get into that much detail here I am going to refer you to Jack Guttentag’s recent explanation on how this works.

$ read more: Jack Guttentag/Inman News ð 

Questions about YOUR best action? Contact us today for your free, no obligation consultation.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below. Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

Subscribe to Listings Updates                      Free Home Warranty

Search the MLS                                   Over the Back Fence

Home Rescue Group                                 Free Home Market Analysis

Yuba-Sutter Real Estate Today

Posted in Finance | No Comments »

1. April 2011 by Michael McFarlane.

There is currently a  proposal to do just that!  The reasoning is that it is more economical to complete a short sale than to allow the delinquency to progress to a foreclosure.  We have been arguing this fact for some time.  In our opinion, short sales are better for all concerned: the bank, the home owner, even the neighborhood.  And that translates into a better economy overall.

$ Read more: Los Angeles Times  ð

We would like your opinion.  While most would agree that government should not be overly involved in private business, neither should private business expect the government to bail them out without some controls.  What do you think? 

Why have the banks not followed through on short sales?  There are many answers and they vary depending on to whom you are talking.  The banks were not prepared for the volume they encountered.  Some of the basics we see are as follows:

1. Large businesses are slow to change.  Banks have gotten to be very large businesses, and they are scattered all across the globe.
2. One department does not know what another department is doing.  While loss mitigation might be working on a short sale, foreclosure department continues with the foreclosure.
3. A serious lack of knowledge (a lack of training) created by the rapid growth of the departments needed to handle this situation.
4. Lenders themselves were in denial.  You know, that “pretend it doesn’t exist and it will go away” attitude.

The list goes on… but the fact remains that we (after all, we, the people, ARE the government) are bailing out the banks.  Should we not have some control over how they use our money?  Is not the idea to help our economy, which in turn helps us all?

We want your opinion!  Please use the comment area below or email us directly to state your view on this subject.  Your input will be passed on to Sacramento!  Here at Encore Real Estate Services (EncoreRES.com) we are dedicated to building better communities.  We are active in the Realtor® Associations (local, state & federal), local and state government, and of course our communities.  Your input makes this possible.

Questions about YOUR best action?  Contact us today for your free analysis.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.  Please note: all visits to our sites are secure AND confidential.  We do NOT track your activity!

Subscribe to Listings Updates           Free Home Warranty

                  Search the MLS                                     Over the Back Fence 

 Home Rescue Group               Free Home Market Analysis  

             Yuba-Sutter Real Estate Today

Posted in Finance, Selling Your Home | No Comments »

24. March 2011 by Michael McFarlane.

While there are many benefits to owning your home, saving at tax time is doubly appreciated by many.  Save money, build personal wealth, invest in your own retirement, building better communities, and many more advantages rate right up there, but the stress relief and the monetary gains of home ownership are hard to beat.

These savings are NOT just for the rich!  Interest paid on your mortgage is tax deductible.  (As you have probably seen, in the first years of paying your new mortgage nearly all of it goes to interest!)  Maintenance on your home is deductible.  Upgrades and repairs too.  Of course these statements are general; consult your tax advisor (whether that be a paid professional, your aunt Mary, or yourself) for your specific benefits.

Where else do you get paid for saving money?  Yes, if you installed a new energy efficient water heater to save on your power bill, you can often also claim tax rebates and/or deductions if these were added to a home you own.  Many other appliances fit this group: A/C, heating, laundry, kitchen, etc.

Making your home more green (energy efficient) pays double also!  Like the energy saving appliances, you save on power costs, maintenance costs, get tax rebates, and tax deductions.  Yes, you really do get paid to save money!

$ read more  ð

Please remember while these statements will apply to most, they are general in nature; consult your tax advisor (whether that be a paid professional, your aunt Mary, or yourself) for your specific benefits.

Questions about YOUR best action?  Contact us today for your free analysis.  We will happily point out possibly overlooked items for your tax professional.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.  Please note: all visits to our sites are secure AND confidential.  We do NOT track your activity!

Subscribe to Listings Updates           Free Home Warranty

                  Search the MLS                                     Over the Back Fence 

 Home Rescue Group               Free Home Market Analysis  

             Yuba-Sutter Real Estate Today

Posted in Finance | No Comments »

22. March 2011 by Michael McFarlane.

That lack of an adequate down payment is the primary obstacle to many new or first time home buyers.  While most may have heard that assistance is available, many don’t know where to turn.

The mortgage industry has become very complicated.  Often a loan agent doesn’t know of programs outside of what their company offers.  They may be reluctant to steer someone outside their company if they do know.  Even your Realtor® may not know (while many have general mortgage awareness, most are not trained in loans).

A new resource (Down Payment Resource) has been created just for this reason.  If you are interested and can qualify, assistance comes in many forms.  Cash, deferred loans, grants, and other terms might be available.  There are city and county programs available in addition to the FHA terms usually bantered about. 

$ Source: Inman News™  ð

What it means for YOU?  Click the link above or contact Yuba Sutter Homes And Loans to see if you qualify.  Or maybe you are interested in selling your home: knowing what programs are available might make the difference to your potential buyer!  Call us today to find out. 530 315-2808

Questions about YOUR best action?  Contact us today for your free analysis.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.  Please note: all visits to our sites are secure AND confidential.  We do NOT track your activity!

Subscribe to Listings Updates           Free Home Warranty

                  Search the MLS                                     Over the Back Fence 

 Home Rescue Group               Free Home Market Analysis  

             Yuba-Sutter Real Estate Today

Posted in Buying a Home, Finance | No Comments »

12. March 2011 by Michael McFarlane.

Do you know what those numbers mean?  Do you understand how to go about changing them, to the positive?  Do you know what a difference of only one point can cost?

A recent survey by Opinion Research asked 22 credit score related questions to consumers.  The average was only 60% right.  Many did not understand the financial cost of a low score.  For instance, a $20,000 car can cost $5,000 or more in extra interest because of a lower score.  That lower score could cost $100,000 on a $200,000 home, or prevent one from purchasing a home at all.

Many consumers did not know how to increase their score according to the survey.  Some believe paying cash is the best, or that having more than one credit card would lower their score.  In fact, using credit responsibly is THE way to boost your score.  It is not the amount of credit you have, but the relationship of available credit to income.  It isn’t how much credit you have but how you use it that counts.

The recent banking meltdown and following recession has lowered scores nationwide.  The lack of available jobs, or hours for those still working also contributes to this lower overall score.  Today nearly one quarter of consumers have a “poor” rating; a score at or below 599.

$ Source: Detroit Free Press  ð

Our take on what it means to YOU?  Did you know that a low credit score could even prevent you from getting a job?  Or that it could cause you to loose the job you have?  How much does it effect you?  Call us today to find out. 530 315-2808

Questions about YOUR best action?  Contact us today for your free analysis.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.  Please note: all visits to our sites are secure AND confidential.  We do NOT track your activity!

Subscribe to Listings Updates           Free Home Warranty

                  Search the MLS                                     Over the Back Fence 

 Home Rescue Group               Free Home Market Analysis  

             Yuba-Sutter Real Estate Today

Posted in Buying a Home, Finance | No Comments »