Archive for February, 2008

Stimulating Real Estate and Mortgages with HR 5140 & FHA

Amy February 20th, 2008

The President signed into law, HR 5140 on Wednesday to “To provide economic stimulus through recovery rebates to individuals, incentives for business investment, and an increase in conforming and Federal Housing Administration (FHA) loan limits.”

We’ve all been hearing and reading about the lump sum that is due to hit many Americans in the form of tax refunds, but this real estate specific stimulus can be much more beneficial than just a few hundred dollars.  Whether buying, selling (and looking to move), or just interested in refinancing, this new law, in unison with low mortgage rates, could save serious cash compared to the old laws.

This new stimulus package includes a temporary increase in the FHA and conforming loan limits.  Depending on your area, this is as high as $729,750.  What this means is that the interest rates on this high loans will be much more competitive because the loans can be purchased on the secondary market by Fannie Mae and Freddie Mac and insured by the FHA.  Before this new law was enacted, the FHA was limited in insuring loans to a maxim of $362,790.  Fannie Mae and Freddie Mac has limits of $417,000.  These limits resulted in fewer options for consumers and higher financing costs for loans that exceeded these limits.  The new stimulus package law increases these limits substantially in high cost areas, allowing for new options and decreased financing costs for many homeowners.

With many areas in the Cincinnati such as Hyde Park, Indian Hill, Mt. Adams, which have median prices exceeding the limits above, this benefit will be seen my many Cincinnati home buyers and refinancers.

The official median home prices will be released by the Department of Housing and Urban Development no later than 30 days from Feb. 13, 2008.  If you are interesting in contacting a mortgage professional to refinance or purchase, I highly recommend Sharon Natarus of Wells Fargo.

There really has never been a better time to buy housing.  Prices are down slightly, rates are approaching historic lows, and now you can purchase a much larger/nicer home with better financing.   However, all of this is temporary.  The spring market is nearing, and will most likely tilt the scales back towards a sellers market, and rates can’t get much lower.  Additionally, the new stimulus package is set to expire at the end of this year, on December 31, 2008.  This means that the old limits will go back into effect after this year. Now is the perfect time to buy a new home or refinance your mortgage because after this year, your costs will be higher and your options more limited again.

The Market is Ripe, Rates are Amazing!

Amy February 6th, 2008

First Time Buyer or Investment for College or Retirement, the time is NOW!

Wells Fargo, dedicated to servicing it customers above all else, stands tall in this difficult Real Estate market. They recently sent out their “Year in Review” (click here) discussing market and loan conditions last year and what to expect for this year. As the article suggests, supply and demand are still causing a “correction period” in our market. With so many mortgage brokers in the US, Wells Fargo is standing tall amidst so many lenders who did not make it through the storm.

Rates are all over the news these days, and Wells addresses this as well. Interesting to know, that just 8 years ago, rates were above 8% for a 30 year fixed, and in 1991 they were more than 10 percent.

This data brings me to my reason for writing you today, TAKE ADVANTAGE OF THIS MARKET! Think outside the box!

So, buyers, combine the over supply of homes on the market (more than you could ever want to choose from) and a low demand (making you, the buyer the one with the power) and historically low rates (better than in great Real Estate market years) BUY NOW! It is truly an unbelievable opportunity to not just buy your first home, but to begin to purchase investment, second home or rental property for your future. I had one buyer purchase their golf course condo that they plan to retire in this December, a full 6 years before their planned retirement! Purchase an investment property when your child is a toddler, and let the equity grow so that at 18, you can sell the home and pay his or her college tuition! collegetuition.jpgBuy a rental property in your 40’s so that by the time you are 60-70, you own it and live off of the rental income on a monthly basis when you are retired. NOW is the time to buy these homes, the market will only go UP!

A few quotes about the market that put this opportunity into perspective for you…

The BEST TIME TO BUY is when sellers fear tomorrow’s market will be worse than today! There is no waiting for the market to bottom out! There is no such thing, because the day we know the market has bottomed out, is the day it is getting better. Do you want to buy one day too early, or one day too late? Now is the time, call me and I will get you connected with Wells Fargo and get you moving to purchasing your first home or investment in your future!

The market is ripe for the picking and the rates are amazing! I am ready to help you make the investment for your future, and well equipped to do so!

Sharon Natarus with Wells Fargo in Cincinnati Ohio can be reached directly at 513-587-3524 or emailed at Sharon.Natarus@wellsfargo.com. Learn more about Sharon’s extraordinary customer service and creative style here.

Ohio Law Warns Buyers About Foreclosures

Amy February 5th, 2008

Last year, I talked about how foreclosures seem like a great idea on the surface, but most often, don’t pan out for serious buyers.  This has become so frustrating for buyers purchasing foreclosure that the Ohio State Law has changed, requiring Realtors to completely explain all of the red tape involved with a foreclosure purchase.  This article highlights some of the recent changes.