MORTGAGE NEWS ROUNDUP

 

Happy Thursday. I hope you have fun plans for the long weekend coming up. Are you planning one last barbecue? Some good hikes?

For today’s mortgage news roundup, we have both sides of flipping houses, a list of repairs every new homebuyer should make (and established ones should re-read to see what you’re missing), and an update on the government easing restrictions for down payments.

Repairs Every New Homebuyer Should Make

Just bought your home and not sure where to start? Here’s a list of maintenance and repairs you should do before move in and up to annually.

Move-In Week
Make it a point to turn on all of your major appliances and let them run for a complete cycle, especially if your home is newly built. Believe it or not, contractors and home inspectors don’t always test out these devices after installing them.

It’s important to find out if the appliance was properly installed. A leak left undetected can become a nightmare. You should also read your home warranty to understand your rights and responsibilities should anything go wrong.
Read the article for more suggestions at 45 days, and 6 months. They also have suggestions for annual maintenance and every other year that you should put on your calendar or tickler file.
As they say, don’t put off small repairs because when you do,they get big and far more expensive very quickly.

15 Cities Where House Flippers Are Making Tons of Money

Have you ever thought of being a home flipper? This article on Yahoo Finance lists the 15 best cities where people are making the most money flipping houses. Not surprisingly, the majority of places are in Florida.
You can read the full report on Realty Trac and see how California is doing specifically.

Buying a ‘flipped’ home? Be careful

On the flip side (sorry, couldn’t resist), there are a lot of flipped homes on the market. MarketWatch has an article on what a home buyer should be aware of before buying a home that was bought cheaply and fixed up.
Current flipping activity is at its highest since RealtyTrac began tracking it in 2007. How do you make sure you don’t buy a home that has been renovated cosmetically, with serious underlying issues beneath the fresh paint?

1. Find out who did the work
2. Hire a good home inspector
3. Look for structural problems
4. Ask for and verify the permits

Government relaxes mortgage down payment rules

CBS News is reporting that the Government is relaxing mortgage down payment rules.

The proposed new Qualified Residential Mortgage rule, released jointly by six government agencies, was cheered by both consumer advocates and mortgage industry members–who typically don’t see eye-to-eye on much–largely because it eliminates much stricter down payment rules that the previous version of QRM would have created.
The six agencies–the Federal Reserve Board, the FDIC, the Federal Housing Finance Agency, the Department of Housing and Urban Development, the Office of the Comptroller and Currency and the Securities and Exchange Commission–are taking comments on the proposed changes through the end of October.

Under the old rule, the requirement was going back to a 20% downpayment. The new rule will have the mortgage lender evaluate the applicant on an individual basis.

Many of those comments attacked the original QRM rules. The proposed changes, on the other hand, are causing nearly universal joy to ripple through housing and mortgage groups.
“This new proposal shows that regulators listened to the comments from the wide range of stakeholders involved,” said Chris Estes, president and CEO of the National Housing Conference, an affordable housing advocacy group. “Aligning the QRM rule with the QM rules will allow more American families to become homeowners and ensures that housing markets can remain strong in the future. This is especially important for communities that are still rebuilding from the foreclosure crisis.”

If you have questions about eligibility for a mortgage, talk to a professional loan officer. They diligently study the news and market and stay on top of the interest rate trends. They also are in touch with many lenders to find the best package for your situation.

Decorating In Small Spaces

 

Decorating In Small Spaces

Have you ever walked around IKEA and been completely amazed at how they get so much in such tiny living spaces?
In today’s post we’ll look at the basics of small living space design and provide tips that you can use in your home this weekend to make it feel like you have more space.
Remember living in a dorm or your first apartment? You didn’t own much so it wasn’t a problem to decorate with cinder blocks and wood planks or milk crates.

Key Principle One: Don’t Have More Stuff Than Space

Look into alternate storage spaces like attics or rafters in the garage for items that you want to keep but don’t need to have at hand. If your kids have a lot of toys out, consider boxing up about half, and then in a few months, bring those back out and box up what they were playing with. It will feel like a birthday all over again as the toys will seem new and exciting. Plus, you don’t have all the toys out there.
And if they’re done playing, pack it up and donate or give to friends.
Rip all of your old CD’s and then get rid of them.
Make sure that everything has it’s place and that it gets returned when done. It will seem difficult at first, but it gets easier when it becomes a habit.

Key Principle Two: Keep decorating Simple

Limit your palette to no more than four shades. Too many colors will make the room seem smaller because the color will be taking up all the space.
Choose one large piece like the bed or the couch to anchor the room. Then balance it with smaller items. Too many little items clutter up and make the room feel smaller.
Keep light fixtures simple so they don’t dominate the room.

Key Principle Three: Look For Multi-Taskers

There are ottomans that double as storage as well as seating.
If you have a closet you don’t use, convert it into a mini-office. You can put in a desk, a lamp, shelves and your computer. Then, when you have company, you can close up the closet doors. If you can’t close the doors, put up some sheers to close off that area and open up the room.

Resources

Better Homes & Gardens’ Guides to Small Space Decorating
HGTV Small Space Design Guides
House Beautiful Small Space Solutions
Which room will you tackle this weekend?

Tagged as: small space decorating

Thanksgiving Decorating Ideas

Decorating on a dime, or have a bit of budget to spend?  Today’s blog will inspire you to start decorating today for the big feast on Thursday.  Even if you’re not hosting, you can still enjoy the warm glow of seeing decorations in your home.  Additionally, some of these ideas could be a great host(ess) gift.

Things to Make Yourself

Transform a serving platter into a mini chalkboard using special paint you can find in most craft stores.  Write the menu, or cocktails, or even a warm greeting for your guests in colorful chalk.  You could transform a thrift store find into a great present for the less than $20 (the cost of the paint, a brush, a pack of chalk, and the platter).  For a video showing how to do this, click here.  (warning, there are ads before and after, and the video starts playing right away)
Take a basket, some leaves from outside, some fruit or some leftover pumpkins, and you’ve got a centerpiece.  Apples and grapefruit in an antique tin can be a country kitchen replacement for the cornucopia.   For 20 inspiring ideas, click here. (it’s a slideshow)
And for the individuals, here’s ideas for place cards and napkin rings.  It’s also a slideshow.

From Casual

Host a Casual Thanksgiving Brunch slideshow
Fun and silly ideas slideshow.  Our favorite was using plastic wishbones for a napkin ring so everyone can make a wish.

To Formal

Tips for setting a formal Thanksgiving table
Martha Stewart recommendations for Thanksgiving decorating.  And here’s how she recommends a variety of table settings.

And Don’t Forget The Kids

LilSugar shows how to make paper turkey place cards, and has additional recommendations to make the kids table fun.
About.com recommends adding in little favors such as stickers, stencils, coloring books and age appropriate jigsaw puzzles to keep the kids occupied.
Keep it fun for you so you enjoy your home.  Don’t get caught up in needing to be perfect so that it becomes stressful.
Do you have regular decorations you bring out each year?  Have you brought your Christmas decorations out too, or do you wait until after Thanksgiving?

Now Cheaper To Buy Than To Rent

It is now considerably cheaper to own a home than to rent that same home, something unheard of since 2008.

This and other promising information about the housing market was recently released by Harvard in their annual “State of the Nation’s Housing,” an in-depth study performed by The Joint Center for Housing Studies at Harvard University.

Because of historically low mortgage rates and low home prices post-recession, it is a perfect time to buy.
On the other hand, rent prices are soaring, especially in the Bay Area. According to Trulia, San Francisco and Oakland saw the biggest jumps in rent in the United States over the last year, with increases of 14.7 percent and 11.2 percent, respectively.

“With rents up, home prices sharply down, and mortgage interest rates at record lows, mortgage costs relative to monthly rents haven’t been this favorable since the early 1970s,” said Eric S. Belsky, managing director for the Joint Center for Housing Studies at Harvard.

The report also noted that today, mortgage payments for the median priced US home are roughly half of what they were in 1990. The study showed that mortgage payments are now 23% less than rent payments for the median priced home.

This means that it is a fantastic time to be a home buyer, and to get off of the fence if you’ve been waiting for the market to turn around.

Take a look at the entire Harvard study here:
http://www.jchs.harvard.edu/research/state_nations_housing.

If you are interested in seeing if you qualify to purchase a home, please don't hesitate to contact me!

New Outdoor Furniture Is Stylish, Comfortable

Outdoor living is moving beyond the concrete slab or generic deck. Many people are expanding their outdoor living spaces, says decorator Sally Falk Nancrede.
Whether they have added grill islands, pergolas or beam roofs, a whole industry is developing for the growth of outdoor living. People want comfy, plush, upholstered or slipcovered chairs that rock or recline, and they want easy-care sofas they can stretch out in.

Store furniture buyers say the products are a lot more consumer-friendly than in previous years. Cushions have drain-through features. Many tables are made with cast-aluminum frames and have composite stone or Corona tops that don’t break. They look nicer and are made heavier so they don’t blow over in the wind.
Easy-care Adirondack chairs made in the United States are colorful and formed from recycled plastic. They are durable, comfortable and are zero-maintenance. They never have to be painted or touched up.

In past decades, Adirondacks were brown and red brown. This year, some are taupe, gray, blue or green.
This is the year people are happy to improve their outdoor living features, and improving curb appeal can increase your home’s value.

Consumer Confidence Is Rising

Consumer confidence at the end of March reached the second-highest level in four years.

Lower interest rates on mortgages and credit cards were one reason for the more positive view. According to a USA Today analysis, American households paid an average of $8,731 for mortgage interest in 2007. For 2011, the average interest was $5,633.

Low interest rates mean more cash in your pocket.
Three-fourths of the interest savings were from falling interest rates, the rest were from debt reduction.
For the three-week period ending on March 25, The Bloomberg Consumer Comfort Index showed more than 30 percent of households said they had a favorable view of the buying climate. It was the longest stretch since early 2008.

The economic gain for borrowers is greater than other stimulus efforts or even high gas prices. A cut in the Social Security payroll tax, for example, saves households an average of about $70 a month.

Job and income growth are providing consumers with the means to withstand higher fuel costs and are the basis for sales of cars and other expensive items. Economists at the National Automobile Association say even if people aren’t paying attention to their falling interest rates, the money builds up in their checking accounts and especially benefits big-ticket items like cars.

The favorable reduction in household debt shows that many responsible Americans are using the extra cash to pay down credit card balances, which is always a wise move.

Consumer spending is a big factor in U.S. economic growth, so if you need a car or a fridge and can afford it, you’ll perk the economy if you go ahead and buy it.

Common First Time Homebuyer Mistakes

Many first-time homebuyers make simple and common mistakes that are easily avoidable.
They face multiple challenges anyway, such as finding the right home, the right agent, getting approved for a mortgage, and staying within their budget. By avoiding these common mistakes, the process of buying a home can be much less stressful.

1. Overlooking extra costs of homeownership
While some see themselves as ready for homeownership once they can afford a mortgage payment, it is important to remember the other fees that come along with owning a home. Property taxes, home owners association fees, maintenance, higher water and electrical bills, and property insurance are among the extra costs of owning a home, and should be calculated into your budget.

2. Not getting preapproved
It is very important to get preapproved for a loan before you go out searching for the perfect place. That way, you will be making financially sound decisions versus unrealistic emotional ones as to what you can afford.

3. Spending your entire savings on your down payment
This is one of the most common mistakes first time homebuyers make. Homebuyers who put 20 percent or more down don’t have to pay for mortgage insurance when getting a conventional mortgage, which often translates into substantial savings on the monthly payment. However, it is smarter to keep your rainy day savings intact instead.
photo credit: opensourceway