Sales of Existing Homes Increase, however not enough

Sales of Existing Homes Increase, however not enough

Sales of previously owned homes rose in September to the highest level in a year, adding to signs that residential real estate will be a plus for the economy.

National Association of Realtors reported today in Washington that closings on home sales advanced 2.4 % to 5.17 annual rate, and purchases rose 1.9% from the same month last year before adjusting for seasonal patterns.

Why this is a great time to sell your home?

Why this is a great time to sell your home?

On the way, easier lending standards and faster wage gains would attract even more buyers, including those making their first entrance to homeownership.

Sales of existing single-family homes increased 2% to an annual rate of 4.56 million in September from the prior month, also the fastest pace in a year. Purchases of multifamily properties including condominiums rose 5.2% to a 610,000 pace.

Of all purchases, cash transactions accounted for about 24%, down from 33% 12 months earlier, Investors, 63% of whom paid cash 14% of the market last month, in September 2013, they accounted for 19%. And First-time buyers accounted for 29% of the market for a third month in September. Distressed sales, accounted for 10% of the total

We are aware that residential real estate market has definitely gotten better; however it has not fully recovered. There is a lot more to be done!

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Fannie Mae sets new rates effective October 14

Fannie Mae sets new rates effective October 14

Fannie Mae is set to raise the benchmark interest rate for its Standard Modification program. Fannie Mae will raise its required interest rate for standard modifications from 4.375% to 4.5%.  The rate was lowered from 4.5% to 4.375% on Sept. 15, but will now rise again in one week. Fannie Mae announced the change on Tuesday in an email sent to its servicers.

When the program began in Jan. 2012, Fannie’s benchmark interest rate was 4.625%. Fannie lowered the interest rate to 4.25% in Sept. 2012, before dropping it to 4% on Dec. 1, 2012.

“Fannie Mae Standard Modification interest rate is not determined on a preset schedule,” Fannie said in the note to its servicers. “The interest rate is subject to periodic adjustments based on an evaluation of prevailing market conditions.”

Fannie also noted that any loan modification requests that were approved at the previous rate are not eligible to be resubmitted for approval under the new modification rule

Why to check on your Interest Rate & APR

Why to check on your Interest Rate & APR

Financial institutions provide considerable information and guidance on mortgage loans and interest rates that apply to these. But it is you who makes the final decision for the best possible loan. Mortgage interest rates change constantly and daily, depending on various and diverse economic, national and international factors.

Finding-a-refinance-rate-for-your-home

The current national interest rate is generally published in various mass media such as the financial section of newspapers, websites, etc.  This information not only helps you know the current interest but also to analyze how interest presented by a certain time.

Keep in mind that,  your monthly payment will be reflected accordingly to the interest rate  you get on a home loan. Remember that these are the loan payments and do not include any other amount as is the property tax, homeowner’s insurance, loan insurance (PMI) if the payment is less engaging 20 percent of the value house, the cost of association if it is a condo, among others.

It is important to not confuse the effective rate of basic interest (Interest Rate) with the annual interest rate (APR), which is calculated according to the cost of your loan and not just the total amount of the amount financed, as in the interest for cash.  Ask if the interest rate is fixed or adjustable. Note that variable interest rates may increase and thus also their allowance.

However, the total cost of a mortgage includes more than just the basic rate of interest or effective. These costs include origination fees; discount points, miscellaneous expenses, etc. and other terms and conditions that could affect the final cost of your mortgage.  In most loans, lenders offer mortgages with several combinations of points and interest rates. Generally, the lower the interest rate, more points could pay before closing. Interest rates affect your monthly mortgage payment, while points affect the amount of cash that must be at closing.

Make sure to understand all terms of the mortgage you choose, so you do not get surprises along the way.  Mortgages are complex financial transactions, and lenders are committed to explain the pros and cons to homebuyers about the various programs and interest rates they offer.

Do you really need Earthquake insurance?

Do you really need Earthquake insurance?

While earthquakes are more prevalent in the state of California, they can occur in any state. The truth is that an earthquake can occur and cause damage to your property in almost any state.

Earthquake insurance will cover damage to your dwelling and its contents caused by damage from and earthquake such as walls that collapse or valuables that are destroyed inside your home.

CALIFORNIA EARTHQUAKEYour regular homeowner’s policy does not cover damage caused by earthquakes. You must either purchase an earthquake coverage endorsement or purchase a separate policy for earthquake insurance.

Don’t make the mistake of thinking that you will rely on government disaster assistance to help you recover losses from an earthquake.  Government disaster programs, such as FEMA, are designed to take care of immediate needs such as food, clothing, medical assistance and temporary shelter.

If you live in an earthquake prone area, the only way your property and contents will be covered is through Earthquake Insurance.

Do You really need Earthquake Insurance?  Only you can make this determination. Many people, especially people who do not live in earthquake prone areas choose not to get this coverage. Earthquake Insurance policies can be quite expensive. Just know that if you do not have earthquake insurance, rebuilding your home and replacing all of your valuables will come out of your own pocket.

The state of California offers earthquake insurance through the California Earthquake Authority (CEA). Individual insurance companies in the state can elect to participate in the CEA.  By law, if an insurance company offers homeowner’s insurance in the state of California, it must also offer earthquake insurance.

Mini-policies are also available which only cover your dwelling, excluding items such as patios, pools or other detached structures. This was introduced in 1996 by the California legislature in an effort to keep earthquake premiums affordable for homeowners.