Katie's Blog

President Bush Plan for Sub-Prime Mess

Katie Karczewski (Keller Williams Realty) — Tue, 11 Dec 2007 23:09:22 -0800

I had a phone call last week from a local news reporter wondering if I would be willing to talk to her about the Presidents plan for the mortgage crisis. What did I think of it? I have several questions on the subject. What exactly is his plan? Will it be backed by the government or private industry? How on earth are they really going to determine who is eligible for it? With the majority of the mortgages packaged and sold on the secondary market to investors around the world how is itgoing to be determined who should be eligible? It is unfortuante that this situation has caused so much pain for so many people. It seems to me that the mortgage brokers have had a heavy hand in this. Why when looking at a clients debt/income ratio are they allowing those people to get in to a mortgage that if one challenge comes up in their financial life it will turn them upside down. Retail sales have driven the economny the last few years specifically due to the fact that with the low interest rates people were using their homes as banks and spending. Good times don't last forever ... at some point the party has to end. If he freezes the adjustment for five years for those re-setting in 2008 what is going to happen then? In theory it sounds good but it seems to me that the reality of it really working out to the benefit of everyone in this mess is a stretch! It has been talked about that in March, 2008 Fannie Mae and Freddie Mac will require 20-30% down and for those with a credit score less than 680 they will either pay additional fees and or an adjustment in their interest rate. When we purchased our first house it wasn't even an option to think about buying without 20% down. It will be interesting to watch the President's plan unfold and how it helps the situation we are in. We need a solid plan in place for a long term resolution for the sub-prime situation.

Living in Grand Rapids

Katie Karczewski (Keller Williams Realty) — Tue, 04 Dec 2007 20:07:06 -0800

My husband and I moved to the Grand Rapids area shortly after graduating from the University of Michigan. I will have to be honest is saying that I wasn't overly thrilled to be there! It was 1979 and leaving Ann Arbor to move to Grand Rapids was nothing short of a major culture shock! Having grown up on the shoreline of Grand Traverse Bay my entire life it was hard to imagine that our children would not have the same opportunity. Hopping on a bike and just cruising around the neighborhood with good friends. Did I really think that? If someone had asked me to write the most ideal story line about where I wanted to raise my kids and what their experiences would be ... it couldn't have been closer to where they did grow up and what their experiences were. It was a great community with an outstanding schools and parents with a hands on mind set about raising their children and being involved. It was close to perfect! They had so many wonderful opportunites throughout their young lives. And they still had the opportunity to create those summertime memories on the shoreline of Grand Traverse Bay just as I had as a kid. We are so lucky to have such easy access to Chicago, Detroit and Northern Michigan. Seeing the changes in Grand Rapids over the last 28 years has been incredible. The passion of those who have put so much into revitalizing the downtown area and creating new business opportunities. There is so much to do in Grand Rapids on so many different levels. There is something for just about evereyone ... all one needs to do is look!

Life in Grand Rapids Real Estate Market

Katie Karczewski (Keller Williams Realty) — Wed, 07 Nov 2007 14:04:42 -0800

Believe it or not, the Katie Karczewski Team is wrapping up a great year in the Real Estate Market in Grand Rapids, MI. We will exceed our 2006 sales! Despite what the media portrays about the economic atmosphere in Michigan, this is a very vibrant city full of good energy and business opportunites. The mindset that people have about the market and wanting to wait until it gets better really baffles me! What you give up on one end you will certainly get on the other. Now is the best time ever to be considering a move up! The buyers will also have the advantage of a lower tax base! Interest rates are still historically low ... opportunity waits for those ready to acquire! Katie Karczewski Keller Williams Realty 616-291-3552