Home Loan Interest Rates Down
March 14th, 2010 categories: Sacramento Mortgage Information
Mixed Economic News Keeps Rates At Historic Lows
I’ve been in the real estate industry for 8 years and have been spoiled the entire time with interest rates that have never gone above about 6.5%.
Historically, I know, as with this housing downturn nationwide, that it can’t last. The “good” market didn’t last, low interest rates won’t last either.
Currently, low rates are the one bright spot in the entire picture. First time homebuyers or people new to home buying just don’t appreciate how low rates are by historical standards.
Since 2001, the average weekly interest rate on a 30 year fixed rate mortgage has been at or below 6.97%. That is an incredible run of low interest rates.
From 1975 to 2001, only once, in 1998, did the average weekly interest rate for at 30 year fixed rate mortgage dip below 7%, the high being in 1981 at 16.63%!
Interest rates, from a historical perspective, are very low. Taking advantage of them will pay off in the long term.
Freddie Mac Drivel For The Week!
At least the information is mixed this week instead of all bad! We’ve got that to be thankful for. It looks like the recovery is firmly established. For now. LOL
Frank Nothaft, the Big Wig, Head Economic Honcho from Freddie Mac said this week:
1. Mortgage rates eased this week from mixed economic data. The 30 year fixed rate averaging about 4.91%.
2. Pending home sales fell 7.6% which was unexpected. (Surprise!)
3. Job losses were low this week in comparison to numbers over the last year shedding only 36,000 jobs for the week, fewer than expected.
4. The unemployment numbers were stable at 9.7% nationwide. (it’s higher here in the Sacramento region)
Overall, not a bad report. These are recovery numbers. How low can they go!
Back At The Ranch…
The following quote is from one of my favorite local mortgage brokers. Pat has stayed with me even when I failed to publish the weekly mortgage post. Thank you for your diligence Pat.
If you’re looking for a mortgage broker, she is one of the best in the business. Give her a call.
Pat Murphy, Guild Mortgage, 916-212-9451 or pat@patmurphyloans.com
“We’re holding steady this week at 5% on the 30yr fixed rate mortgage as of this morning. As you know, rates change constantly; sometimes more than once in a day! But the real urgency is that in order to take advantage of the Federal first time homebuyer $8,000 tax credit, you must be in contract to buy a home by April 30th ! “First time homebuyer” is anyone who hasn’t owned a home for the past three years. If that’s you, don’t wait! Contact me at (916) 212-9451 or pat@patmurphyloans.com, because I would love to help you finance your dreams!
Free Advice – Honest Loans
Thanks Pat! Looking for a home loan resource? Fill out the form below and I’ll have one of my referrals call you within 24 hours.
Thanks for visiting!
cforms contact form by delicious:days
Tags: home loans sacramento, sacramento mortgage interest rates
| Discussion: No Comments »
Mortgage Guidelines Are Getting Tougher!
March 10th, 2010 categories: Sacramento Mortgage Information
This Is MUST KNOW INFO!
This morning while I was working away, a fellow Realtor, Cera Hinkey sent me some new mortgage guidelines that will affect virtually EVERYONE attempting to get a mortgage in today’s tough, tough, tough mortgage environment.
<—– = Mortgage underwriters!
Brace yourself. This is UGLY!
NEW UNDERWRITING UPDATES
1. All borrowers’ birth certificates will be required with pictures taken in the hospital with medical staff. Birth certificate with a live home delivery will not be eligible for first time home buyers.
2. Marriage certificate with bridal dress will be required if both husband and wife are required to qualify for the loan.
3. GFE (aka good faith estimates) will require blood sampling from a recognized institution within three days of application. Signature is optional!
4. DNA test will be performed at closing to avoid any non-arms length transactions. Loan funding will be contingent upon satisfactory receipt of DNA results.
5. Copy of Pay stubs and W2 will only be acceptable ONLY through IRS and ONLY with a wax-sealed envelope mailed directly to the lender.
6. Seven witnesses from the neighborhood will be required as proof of primary residence. Their birth certificates will be required in triplicate.
7. All appraisers will be required to use masks and ear plugs at the time of inspection to avoid any personal influence by the borrower or broker for the appraised value. Phony mustache and glasses are optional.
8. In order to correctly calculate DTI (aka debt to income) and true housing ratio a list of grocery items, monthly usage and brand names will be required with receipts and projected 12 month consumption chart.
9. Closing will not occur without loan officer presence at settlement and the loan officer’s picture will be taken at the closing in a mug shot format with loan number. Picture should meet standard guideline of 2 X 2 inch in color format with one facing and one side view.
10. Loan officer picture will be attached to the Deed and loan documents and will be made available for general public and security agencies in case borrower defaults on the loan.
While this is meant to be funny, believe me, this is what it feels like to get a mortgage done these days!
Thanks for visiting!
Tags: sacramento home loans
| Discussion: 3 Comments »
To Flip or Not To Flip…..Is There A Question?
March 8th, 2010 categories: Sacramento Mortgage Information
They May Have Eased The Flip Rule….but
I’ve got a client right now, a first time home buyer, and we’re in escrow on a home that’s perfect for him in Antelope. (Antelope is an area of north east Sacramento) This home had been foreclosed on and then purchased by an investment group who then put the property right back on the market.
For those not familiar with real estate terms, this is called “flipping” a home. You buy it at a cheaper price and sell it for what the market in the area of the home will bear. This kind of transaction is an investors dream as the turn around can be quick and profits fair.
Until recently, there were knee jerk rules in place to “protect” buyers from unscrupulous investors making buying a home and attempting to flip it. A buyer used to have to wait 90 before making a financed offer on a home that had been recently flipped.
The rule just changed about 30 days ago allowing financed buyers purchase “flipped” homes as soon as they come on the market rather than having to wait 90 before making an offer.
Do I Always Have To Be The First To Test The Waters?
Mortgage rules are in a constant state of flux these days, much more than usual which for the most part are only succeeding in making the process harder.
When buying a flipped home, the lender and title company have been asking for:
1) a second appraisal.
2) documentation from the seller regarding every improvement.
3) documentation regarding what was paid for the property.
4) the home inspection.
5) additional documentation from the buyer ensuring an arms length transaction. (arms length = buyer and seller don’t know each other)
It seems like with every rule change that comes down in the mortgage industry, I’m the first transaction that lender has seen. We’re experiencing delays as the process isn’t seamless yet. Although the 90 day restriction had been lifted by HUD, there were only two lenders that would take the file.
If you’re buying a home that has been recently flipped, make sure your mortgage broker is up to date with the new flipping rules, mine is and it’s going as smoothly as humanly possible.
Thanks for visiting!
Tags: home for sale in sacramento
| Discussion: No Comments »
Is It Available or Not!?
January 31st, 2010 categories: First Time Home Buyer Info, Your Questions Answered!
The Term “Active Short Sale Cont.”
There is some confusion in the market today with a relatively new term that relates to the market status of a home called “active short sale cont.”
Short sales are new for our market. They have only been around in abundance for the last year and a half in this cycle and most buyers, first timers especially, aren’t familiar with the term. It appears that the home is available because the word “active” is there but this is misleading.
In the process of a short sale, the seller/borrower must produce financial documents showing that there is a legitimate need to sell for less that what is owed on the home. The lender doesn’t want to take a loss and won’t approve the short sale without good reason to do so.
Currently, this process takes forever due to the volume of short sales happening nationwide. Our economy and value losses in our region have taken their toll and some can no longer afford to stay in their homes.
Waiting On Lender Approval
After the seller/borrower of the home to be sold short has gathered together all of the financial information they 
need to submit to the lender, the listing agent packages those documents along with the listing agreement and the highest and best offer and sends it to the lender for their approval.
This is when the property goes into the status “active short sale cont.”.
Listing agents tend to submit only one offer to the lender so that the financial package is streamlined and efficient in the hope of getting a speedy approval.
This rarely happens as the volume of files the lender is receiving requesting a short sale is just more than their loss mitigation departments can handle.
And More Waiting
After the package is submitted, the waiting game begins…and goes on and on and on.
While the short sales process has gotten quicker, in the Rocklin and Roseville real estate markets, the average days on the market for a short sale is 169 days. This is the average amount of time it takes for a short sale to go into “pending” status.
Then add 30 to 45 days in escrow and the average time for a home to be sold short in Rocklin and Roseville since August 1st of 2009 is roughly 209 days!
Sweet!
The days on market time stops when a home goes pending sale.
“Pending” status in a short sale is when the package has been approved by the lender and the offer has been accepted…if the buyer is still around to close!
Often, the original buyer disappears long before the short sale approval ever happens and then the seller/borrower starts over with a new buyer. The process just takes too long.
With the new buyer, time frames are shortened as the short sale has already been approved and it’s then a matter of submitting a new offer and getting lender approval.
“Buyer disappeared, need offers!” is a common comment in the confidential agent remarks in the MLS.
All in all, and I’ve said this before far too many times, there is nothing short about a short sale. If you’re in a hurry trying to take advantage of the first time home buyer tax credit..you won’t have enough time to get it closed before the expiration date.
Have questions? Please feel free to call or email.
Thanks for visiting!
Tags: short sales sacramento rocklin roseville
| Discussion: 1 Comment »
What’s Your Home Worth – Rocklin 95765
January 28th, 2010 categories: Home Sales Reports, Rocklin
Sold Prices Per Home Square Footage
As we’ve turned into the new year, the fallout from the housing crisis still looms perhaps not as large as one year ago but it’s still there none the less.
The Rocklin zip code of 95765 has been, like most other communities in the region, dealt severe valuation losses since 2006 when I noticed homes weren’t selling as they had been and by the end of 2006 it was clear something was dreadfully wrong.
Like most, I was wrong about this entire mess. I was in good company!
I thought I’d put together two tables, homes built after 2000 and homes built before 2000, of square footage ranges and their corresponding sold prices over the last 60 days to give you a semi accurate assessment of what your home in Rocklin might be worth today if you were planning to sell.
Every neighborhood and home are different. To get a very accurate assessment of the value of any home, details such as it’s address, amenities and a visual inspection are needed. Otherwise just a range is possible when comparing apples to apples, so to speak.
These tables are based on square footage only without any account for amenities like pools or upgrades.
Your home may be valued higher or lower than these averages based on location and amenities. Square footage ranges clearly skipped over reflects no sales in this home size over the last 60 days.
For a free market evaluation of your Rocklin home, please fill out the form below and I will respond promptly!
cforms contact form by delicious:days
Table 1: Homes built prior to 2000 sold over the last 60 days.
| Square Footage | Low | High | Average |
| 1500 to 1600 | $247,900 | $247,900 | $247,900 (1 sale) |
| 1601 to 1700 | $245,000 | $262,000 | $254,000 |
| 1900 to 2000 | $250,000 | $420,000 | $306,250 |
| 2001 to 2100 | $253,050 | $375,000 | $295,983 |
| 2101 to 2200 | $275,000 | $346,000 | $313,000 |
| 2201 to 2400 | $325,000 | $343,000 | $334,000 |
| 2401 to 2600 | $315,000 | $330,000 | $325,000 |
| 2601 to 2800 | $349,000 | $477,500 | $415,750 |
| 2801 to 3000 | $445,000 | $445,000 | $445,000 (1 sale) |
| 3001 to 3500 | $390,000 | $425,000 | $407,500 (2 sales) |
Table 2: Homes built after 2000 sold over the last 60 days.
| Square Footage | Low | High | Average |
| 1400 to 1600 | $232,500 | $245,000 | $237,500 |
| 1601 to 1900 | $245,000 | $285,000 | $262,000 |
| 1901 to 2100 | $250,000 | $330,000 | $277,150 |
| 2101 to 2400 | $275,000 | $360,000 | $310,667 |
| 2401 to 2600 | $285,000 | $435,000 | $324,158 |
| 2601 to 2800 | $330,000 | $410,000 | $357,250 |
| 3201 to 3400 | $439,000 | $503,000 | $471,000 |
| 4500 to 4600 | $550,000 | $610,000 | $580,000 (2 sales) |
| 4990 | $621,000 | One Sale | N/A |
Please call or email with any questions.
Thanks for visiting!
Tags: sold prices rocklin 95765
| Discussion: No Comments »
First Time Home Buyers: The Clock Is Ticking!
January 24th, 2010 categories: First Time Home Buyer Info
Buyers Looking For Homes Increasing!
After running just a couple of ads from this site, I got 4 serious buyer inquiries from people looking to purchase in the next 90 days.
One was an investor from Sonoma, another was a first time home buyer looking for foreclosure deals in Rocklin.
Still another buyer, not a first timer, is looking in Carmichael and a guy looking in Morgan Creek, Roseville.
All seemed ready, willing and able to purchase.
On my Facebook page, one of my lending resources, Tim Clark, mentioned that he’d been to several open houses on Saturday and there were buyers at every one of them.
Fewer Homes For Sale
Right now, although I’m hearing the total amount of homes for sale will be increasing, there just aren’t that many homes on the market and it also seems from what I’m hearing that the number of buyers looking for homes is increasing.
My site traffic numbers, the phone calls and emails I’ve been getting over the last weekend and what other local industry professionals are saying all point to buyers coming out of their winter hibernation.
This could mean that 95 days isn’t enough time to get it done!
According to many economists, the market may not be as favorable later in the year as it is now especially in lending.
Although the recent FHA changes won’t take affect until after the first time home buyer tax credit expires, those changes could mean you don’t qualify.
Looking for an agent to help you get it done? Fill out the form below and I’ll get back to you promptly.
Thanks for visiting!
cforms contact form by delicious:days
Tags: first time home buyers sacramento rocklin roseville
| Discussion: No Comments »
Rocklin / Roseville Open House Map – 1/23 and 1/24
January 23rd, 2010 categories: Rocklin & Roseville Open Houses
Google Interactive Open House Map
30 Open Houses This Weekend
There are 30 open houses scheduled for this weekend in the Rocklin/Roseville area. This list comes from the MLS (multiple listing service) by courtesy of Metrolist, Inc. (Thank you!)
Agents who are holding these open houses schedule them in the MLS and those schedules are then posted in places like the Sacramento Bee online and in other spots. There are more open houses out there than are on this list and you’ll find them driving around the region.
There are always changes so if you see a home you’d like to get into and the agent for whatever reason isn’t there when they said they would be, give me a call and I’ll be happy to show it to you.
If you’re looking for a home in Rocklin or Roseville and need an agent to assist you, please fill out the form below the map and I’ll contact you promptly.
Thanks for visiting!
View Rocklin/Roseville Interactive Open House Map in a larger map
cforms contact form by delicious:days
Tags: open houses rocklin roseville
| Discussion: No Comments »
