Knoxville One Of The Top 5 Cities Real Estate Market To Rebound First….
January 23rd, 2010 categories: Buyers, General, Market Trends, Sellers
The cities that are coming back the strongest are the ones that did not hit have the pricing bubble, which was followed by the foreclosure crisis. Forbes did a study of America’s 100 largest Metropolitan Statistical Areas (MSA) which are defined by US census. One of the key factors in the ranking is the low foreclosure rate. Forbes also looked at the delinquency rate of the city and foreclosures will be much lower and will clear up faster in cities with low delinquency rate. They looked at the trends for these cities to determine the ranking.
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FHA To Change Guidelines…How Will It Effect Knoxville Home Buyers??
January 20th, 2010 categories: Buyers, General, Market Trends, Sellers
Patti Francisco with Wells Fargo sent along information on this anticipated announcement from HUD today relaying changes to FHA lending terms in it’s continued effort to shore up the program against increasing financial losses and the threat of needing a government bailout.
The changes being announced are expected to be:
- Increase the Mortgage Insurance Premium which is collected at closing and most often financed with the loan from 1.75% to 2.25% of the loan amount.
- Require that any borrower with a credit score less than 580 put down 10%. 3.5% down will continue to be required by HUD with credit scores equal to and greater than 580. ***Note that most lenders apply their own credit policy overlay on top of the HUD credit score requirements, i.e. Wells Fargo currently has a credit score minimum of 600 for our FHA transactions. Most other lenders have a 620 or 640 FHA credit score minimum.
- Seller concessions will be limited to 3% of the purchase price versus the currently 6% limit.
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Knoxville Home Buyers Take Advantage Of The Tax Credit
January 8th, 2010 categories: Buyers, General, Market Trends, Sellers
As we get started in 2010 many Knoxville Home Buyers are wondering who can take advantage of the extension of the tax credit. It isn’t just limited to first time Knoxville Home Buyers buying their first home.
Originally created in 2008, the home-buyer tax credit has evolved from a $7,500 credit, which had to be repaid by the home buyer over the course of 15 years, to an $8,000 tax credit with no repayment required in 2009. Now, for a limited time in 2010, the $8,000 home buyer tax credit will still be available to first-time home buyers and certain current homeowners will also be eligible for a $6,500 credit.
To help area Knoxville Home Buyers here are the highlights of the Tax Credit.
Which Knoxville Home Buyers can claim the credit?
“First-time home buyers” who purchase homes between November 7, 2009 and April 30, 2010 are eligible for the credit. To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
For current Knoxville homeowners purchasing a home during the same time frame, they are also eligible for a tax credit, so long as the home being sold or vacated was their principal residence for five consecutive years within the last eight. To elaborate, it must be the same home; it is not enough that they have been homeowners for five consecutive years, they must have been in the same home for five consecutive years.
Another key point is that the existing Knoxville home does not need to be sold. One must, however, occupy the new home as a principal residence and do so for three years or risk recapture of the credit. Also, the new home does not need to cost more than the old home despite the concept that it is directed at “move up” buyers.
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Happy New Year Knoxville!!!
January 1st, 2010 categories: Buyers
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Merry Christmas Everyone
December 24th, 2009 categories: General
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How To Trim Your Utility Bill Without Inconveniencing Yourself
December 21st, 2009 categories: Buyers
The average family spends $2,200 per year in electric bills and the average home is responsible for twice the amount of greenhouse gases than the average automobile.
Whether you want to save money or save the environment, this 5-minute piece from the NBC Today Show is for you. In it, you’ll learn that just by being aware of your energy consumption, you can reduce it by up to 15 percent.
The piece centers on a device called a Power Monitor which retails from $30 to $100, depending on the model. It measures the actual cost of using an appliance, or using a light, or charging a laptop, or any other household energy use.
Among the cost findings:
- A plugged-in phone charger no phone attached costs $0.10 per hour
- Cooking with a microwave costs $0.88 per hour
- Big screen TVs cost $0.06 per hour to operate
Obviously, turning off lights when rooms aren’t in use saves money, too.
By making small changes — most of which aren’t inconvenient — the average family can drop its energy bill by hundreds of dollars each year.
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New School Proposed For West Knoxville
December 18th, 2009 categories: Buyers, General, Market Trends, Sellers
Knox County Schools are considering a new elementary school for West Knoxville. There are four different sites that the school board is considering…
Site 1 is the Northshore Town Center it is a 14 acre parcel just off Pellissippi Pkwy. Very convenient location.
Site 2 is Choto 1 which is a 15 acre parcel next to the new YMCA in Jefferson Park off Northshore
Site 3 is Choto 2 is on the south side of Northshore just west of Choto
Site 4 is Choto 3 is a 23 acre parcel on Choto near the intersection of Northshore
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A Simple Explanation Of The Federal Reserve Statement (December 16, 2009 Edition)
December 16th, 2009 categories: Buyers, General, Market Trends, Sellers
The Federal Open Market Committee voted to leave the Fed Funds Rate within its target range of 0.000-0.250 percent.
In its press release, the FOMC noted that the U.S. economy “has continued to pick up”, that the jobs markets is getting better, and that housing market has shown “some signs of improvement” lately.
It’s the fourth straight statement in which the Fed speaks optimistically about the U.S. economy – a signal that the worst of the recession is likely behind us.
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It is Getting Tough To Borrow Money To Buy A Knoxville Home…Again
December 16th, 2009 categories: Buyers, General, Market Trends
Fannie Mae raised the bar for mortgage applicants this past weekend. Getting approved for a Knoxville home loan just got harder
In its official announcement, Fannie Mae says the updates minimize long-term lending risks. If that’s the case, this won’t be the last guideline change Fannie Mae makes — especially with loans defaulting at an above-normal clip.
The immediate changes are major. The first pertains to credit scores.
Effective December 13, 2009, the bulk of Fannie Mae’s loans require a 620 credit score minimum. There are very few exceptions.
A second relates to loans with private mortgage insurance.
Homeowners whose loan-to-value exceeds 80 percent now have a choice:
- Pay higher mortgage insurance premiums month-after-month
- Pay a one-time fee paid at closing to compensate for higher risk
Both options result in higher consumer loan costs.
A third change concerns maximum debt-to-income ratio. Fannie Mae will no longer approve loans with debt ratios exceeding 45 percent except with very strong assets and very high credit scores.
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The Federal Reserve’s Relationship To Mortgage Rates
December 15th, 2009 categories: Buyers, General, Knoxville Short Sales, Market Trends, Sellers
The Federal Open Market Committee meets today for the last time in 2009. It’s a 2-day meeting and the Fed is expected to leave the Fed Funds Rate near 0.000 percent.
But that doesn’t mean mortgage rates won’t change.
See, a major misconception among the public is that the Federal Reserve sets mortgage rates. That’s false. Mortgage rates are based on the price of mortgage-backed bonds.
As an example, since 2000, the Fed Funds Rate and the 30-year fixed rate mortgage have been within 1 percent of each other at times, and as far apart as 5 percent at others.
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