Archive for the 'Buyers' Category
Homes Sales Drop….But Knoxville TN is a GREAT place to buy??? Part 2
September 1st, 2010 categories: Buyers, Market Trends, Mortgage Rates
Well if you have been watching the Knoxville real estate market you heard that homes sales dropped a whopping 27% last month So what do you do if you live in Knoxville, TN. You want to sell your current Knoxville home and buy another home?? Wait until things get better…when will that happen? From Part 1 we talked about the market from a seller’s prospective. Today I would like to cover today’s market from a buyer perspective and how i think you should proceed in making a smart buy in Knoxville real estate market.
Educate, Take your time, hire a good agent….
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Knoxville Mortgage Rates May Be Low…But Watch The Bouncing Ball..
August 31st, 2010 categories: Buyers, Market Trends, Mortgage Guidelines, Mortgage Rates
Mortgage rates are low right now but pinning them down this week could be a challenge. As Labor Day Weekend nears and Wall Streeters take their head-start on the holiday, trading volume will fall, which will cause mortgage rates in Knoxville TN to get jumpy.
As mortgage rates change, so does the long-term cost of owning a home. Every 1/8 percent adjustment changes a household budget.
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How To Unclog A Sink That Won’t Respond To Drano
August 16th, 2010 categories: Buyers
Sometimes, a backed-up sink is too big of a job for a bottle of Drano. To clear the clog, you have to get your hands dirty. But what do you do? This quick, 2-minute video from Lowe’s is an excellent tutorial.
The video starts with basic safety preparation, then shows you how to:
- How to identify the J-trap beneath your sink
- Position a plastic bucket to catch water run-off
- Use your finger to clear out debris
- Replace the J-trap beneath the sink
Unclogging a sink can be simple homeowner project, but if you’re uncomfortable working with plumbing or just want to outsource, be sure to call a professional.
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Yes, You Can Still Get A Mortgage If You’re Pregnant
July 23rd, 2010 categories: Buyers, FHA Mortgages, Mortgage Guidelines
The New York Times ran an important story this week concerning pregnancy and mortgage approvals. Titled “Need a Mortgage? Don’t Get Pregnant“, the article discussed the difficulties that expecting and recently-expanded families are having with their mortgage financing.
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Mandatory Loan Fees Keep Borrowers From Getting Their Absolute Lowest Rate
July 19th, 2010 categories: Buyers, FHA Mortgages, Home Values, Mortgage Rates
Conforming mortgage rates may be posting all-time lows this week, but that doesn’t mean you’ll be eligible for them. You may have already called your loan officer and found this out the hard way.
It’s because of a federally-mandated mortgage-pricing scheme known as “loan-level pricing adjustments”.
In effect since April 2009, loan-level pricing adjustments are changes to a loan’s base rate and/or fee structure based on that loan’s inherent risk to Wall Street. It’s similar to auto insurance pricing adjustment in that a sports car, all things equal, will cost more to insure than a comparably-priced minivan.
More risk, more cost.
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How To Install A Ceiling Fan In Your Home
July 12th, 2010 categories: Buyers
Up to 50% of your home’s energy bill can be tied to heating and cooling costs. Thankfully, it’s easy to lower those bills. The addition of a ceiling fan can cut your household energy bills dramatically.
Plus, the installation may be simpler than you think.
In this 4-minute video from the Lowe’s YouTube collection, you’ll learn how to measure, mount and install a ceiling fan, step-by-step:
- Choose the right-sized fan for your room based on its “longest wall”
- Cut the power to your room, and test that the power is off
- Assemble a ceiling fan
- Secure a ceiling fan motor to the ceiling
- Restore power to the room
If you’re uncomfortable around electricity, or feel the video’s instructions are “too complicated”, by all means, call an electrician. The money you spend on installation will be dwarfed by what you save in energy bills.
For an electrician referral in Knoxville , reach out to me anytime by phone or email. I am happy to help you.
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Loan Application Alert : Conforming, Interest Only Mortgages Guidelines Change Next Week
June 17th, 2010 categories: Buyers, FHA Mortgages, Household Finances, Market Trends, Mortgage Guidelines, Mortgage Rates
If you plan to finance your Farragut home with a conforming interest only mortgage, get your loan application submitted no later than this Friday, June 18.
Starting next week, Fannie Mae is clamping down on the popular loan product.
An “interest only” mortgage is exactly what its name implies — a mortgage for which the monthly payments consist entirely of interest with no principal reduction. Because there’s no amortization, payments are less costly on a month-to-month basis.
For example, assuming principal + interest payments at 5 percent, a $250,000 mortgage carries a monthly payment of $1,342. The payment on a comparable interest only mortgage, however, drops to $1,042.
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Good News For Sellers : Housing Starts Fall To 1-Year Low In May 2010
June 17th, 2010 categories: Buyers, Existing Home Sales, FHA Mortgages, Home Values, Housing Starts, Market Trends, Sellers
Single-family housing starts plummeted to a one-year low in May, just 30 days after soaring to a 20-month high. It’s no wonder home builders are confused.
Against a revised April figure, Housing Starts fell 97,000 units in May, a figure representing almost one-fifth of the total market size.
It’s the worst showing for Housing Starts since May 2009, a surprise to builders and economists alike.
Furthermore, single-family Building Permits plunged in May, too — down 10 percent from April. A permit is a certification from local government that authorizes home construction.
Housing permits are a precursor to Housing Starts with 82% of homes starting construction within 60 days of permit-issuance. Fewer permits, therefore, directly reduces the number of new homes coming to market in the coming months.
For home buyers in Knoxville , this should create a sense of urgency.
Home prices are based on supply and demand and supply appears to be falling about the same time that economists predict a surge in home demand. It could spell rising home prices and a complete loss of negotiation power with home sellers.
For now, though, home affordability remains high with properties cheap and mortgage rates near all-time lows. If you plan to buy a home later this year, the May 2010 Housing Starts data may be a reason to move up your timeframe a bit.
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FHA Mortgage Insurance Premiums Approved To Triple In Cost
June 17th, 2010 categories: Buyers, FHA Mortgages, Home Values, Household Finances, Market Trends, Mortgage Guidelines, Mortgage Rates
Starting sometime later this year, the monthly cost to carry an FHA-insured mortgage is expected to rise.
In a near-unanimous vote, the House of Representatives gave the FHA power to raise the monthly mortgage insurance premiums it charges to its borrowers.
Currently, monthly mortgage insurance premiums are 0.55% of the unpaid loan balance, divided by 12. The recently approved Federal Housing Administration Reform Act provides for an increase in monthly premium of up to 1.55 percent, among other details of the bill.
Despite the ability to charge 1.55 percent, FHA officials say an increase to 0.90 percent would be sufficient to self-insure its loans.
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Conforming Loan Costs Are Rising, Says Freddie Mac
June 9th, 2010 categories: Adjustable Rate Mortgages, Buyers, FHA Mortgages, Market Trends, Mortgage Guidelines, Mortgage Rates, Sellers
Mortgage rates may be dropping, but mortgage costs are not.
According to Freddie Mac, the average required discount points on a conforming mortgage rate are higher by 0.1 percent since early-May.
A “discount point” is prepaid mortgage interest; an up-front fee paid by a borrower in exchange for a lower mortgage rate. In most cases, discount points are tax-deductible.
Tax-deductible or not, though, rising costs are rising costs and Freddie Mac glosses over it. In its weekly press release, the government group offers mortgage rate comparisons to weeks prior, but doesn’t do the same for required points.
The press fails to mention discount points entirely.
An increase of 1/10 percent in discount points costs homebuyers and refinancing households in Maryville an extra $100 per $100,000 borrowed.
The hike reminds us that there’s more to a mortgage than just its rate — costs matter, too. And if you’ve only been watching the headlines, you would have missed how costs are rising.
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