Rene's Blog

First-Time Home Buyer Tax Credit

Rene Burchell (RE/MAX Premier Properties IV) — Thu, 27 Aug 2009 21:55:45 -0500

New Federal Tax Credit provides opportunity for First-Time Homebuyers.

There is good news for first-time homebuyers. The new tax credit may mean new buying opportunities for qualfied homebuyers.

Effective January 1, 2009, qualified first-time homebuyers may be eligible for a federal tax credit of up to $8,000. Ask your tax advisor for more details. Listed below are some of the key highlights of the program:

First-Time Homebuyers Only: must not have owned a principal residence during the 3 year period prior to purchase
Amount of Tax Credit: credit equals 10 percent of the homes purchase price, up to a maximum of $8,000, whichever is less
No Repayment: This tax credit does not require repayment but home buyers must use residence as a principal residence for at least 3 years or face recapture of tax credit amount.
Tax Credit is Refundable: Homebuyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. A refund check may be issued to the taxpayer for a portion or even all of the refundable tax credit (depending on the taxpayer's tax liability)
Income Restrictions: single taxpayers with income up to $75,000 and married couples with incomes up to $150,000 qualify for the tax credit. (partial tax credits may be available for taxpayers incomes over the above limits*restricitons apply-must consult your tax advisor)
2008 Tax Returns: tax credit can be claimed on 2008 federal tax returns if the home was purchased on or after January 1, 2009.
Limited Time Only: tax credit is availble for homes purchased on or after January 1, 2009 and before December 1, 2009

Contact me today to find out how the new ferdal tax credit meight help you move into a New Construction Home!

Finally Good Housing News....

Rene Burchell (RE/MAX Premier Properties IV) — Thu, 27 Aug 2009 21:37:18 -0500

Good News for Home Sales: July reported home sales were up 9.6% which showed a postive fourth straight month beating out negitive housing expectations.

We could be seeing the bottom of the market but this will not be reported until possibly year end.

More Good News! First-Time homebuyers are take advantage of a federal tax credit that covers 10 percent of the home price, or up to $8,000*. Home sales must be completed by the end of November for buyers to qualify.

*some income restrictions apply

GOT QUESTIONS? Let me know how I can help!

Home Loans with Zero Move-In .... Is Still Around!

Rene Burchell (RE/MAX Premier Properties IV) — Mon, 05 Jan 2009 18:05:58 -0600

Did you know that there are lenders out there still offering Zero Move-In with USDA Loans and FHA Rescores from 530 FICO?? These programs are also combined with a $7,500 Tax Credit for any Borrower that have not owned a home in the Past 3 Years.

Borrowers can finance a home loan up to $271,000. There are FHA Investors that will work with Borrowers with No Minimum Score if the following conditions can be met:

1. Borrower must be able to verify Income and Job History

2. The Borrower can have collections and charge-offs, if the actual date of occurrence is over One Year old (preferably Two Years)

3. Borrower must be able to verify good Rental History for atleast 12 months

4. The Borrower must have at least 3 Trade-Lines that have a good pay history for the last 12 months, minimum. Alternate credit or trade-lines can be used.

5. No Reserves are required, but as always, they are helpful

I work with mortgage companies that are willing to educate borrowers on these programs and many more.

Now May Be the Time to Think About Buying a House

Rene Burchell (RE/MAX Premier Properties IV) — Wed, 10 Dec 2008 16:45:56 -0600

December 6, 2008

Your Money

It May Be Time to Think About Buying a House

By RON LIEBER

Five or 10 years from now, when the financial crisis has ended and housing prices are up smartly once more, we will look in the rearview mirror and realize that we missed a golden age for first-time home buyers.

Then, everyone who sat on their down payment savings accounts for a few years too long will kick themselves for not taking advantage of what may turn out to be the buying opportunity of a lifetime for those who can qualify for a mortgage.

Unfortunately, we do not know when this golden age will begin, because we will be able to identify a bottom to the housing market only with the benefit of hindsight. But as it does with the stock market, the moment will probably arrive when everyone is feeling the most pessimistic.

That moment is certainly getting closer. Housing prices have fallen drastically from their peak levels in many areas of the country. Rates on 30-year fixed-rate mortgages are already close to 5.5 percent, and this week there were suggestions that the federal government might try to drive them down to 4.5 percent, a truly incredible figure to be able to lock in for three decades.

Meanwhile, first-time home buyers have the same advantage they have always had, which is that they do not have to sell their old place before buying a new one. That is an added advantage in areas where many available houses simply are not moving, because the people trying to sell them will not be bidding against you.

If you're hoping for a recovery in the housing market, you ought to be cheering on the first-time home buyers. When they purchase homes, their sellers are free to move on or move up, stimulating further sales.

But if you are a potential first-time buyer yourself, or lending or giving the down payment to one, you are probably as frightened as you are tempted by all the "For Sale" signs that have become "On Sale" signs. So let's quickly review some of the still-grim pricing data in certain areas - and consider the reasoning offered up by first-time buyers who have forged ahead anyhow.

As is always the case with real estate, much depends on location. One study, "The Changing Prospects for Building Home Equity," tries to predict where today's first-time buyers in the 100 biggest metropolitan areas may actually have less home equity by 2012 as a result of continued price declines. The verdict was that buyers in 33 of the markets could see a decline by 2012, including potential six-figure drops on an average home in the New York City , Los Angeles , San Francisco and Seattle metropolitan areas.

This is obviously scary. (I've linked to the study, a joint effort of the Center for Economic and Policy Research and the National Low Income Housing Coalition, from the version of this article at nytimes.com/yourmoney.) It's worth noting, however, that these predictions came before the government made its most recent move to reduce borrowing costs.

Also, the price projections in the study are based, in part, on the fact that the ratio of purchase prices to annual rents is still higher in many areas than the historical average, which is roughly 15 times rents. While past figures may well have some predictive value, I have never been convinced that first-time buyers compare a home that they could own and one that they would rent in purely or even primarily economic terms.

When Jaime and Michael Proman moved this fall to Minneapolis , his hometown, from New York City , they craved a different sort of life after two years together in a 450-square-foot studio apartment. "We didn't want a sterile apartment feel," said Mr. Proman, who is 28 (his wife is 26). "We wanted something that was permanent and very much a reflection of us."

The fact is, in many parts of the country there are few if any attractive rentals for people looking to put down roots and enjoy the sort of amenities they may spot on cable television home improvement shows. Comparing a rental with a place that you may own seems almost pointless in these situations, especially for those who are now grown up enough to want to make their own decisions about décor without consulting the landlord.

Still, for anyone feeling the urge to buy, a number of practical considerations have changed in the last year or two. The basics are back, like spending no more than 28 percent of your pretax income on mortgage payments, taxes and insurance. Even if a lender does not hold you to this when you go in for preapproval, you should hold yourself to it.

You will also want to start now on any project to improve your credit score because it may take several months to get it above the 720 level that qualifies you for many of the best mortgage rates.

John Ulzheimer, president of consumer education for credit.com, a consumer credit information and application site, suggests starting to pay down and put away credit cards months before you apply for a loan. That is because the credit scoring system could penalize you if you use a lot of credit each month, even if you always pay in full. Also, check your three credit reports (it's free) at annualcreditreport.com and dispute errors.

While no one can easily predict the likelihood of losing a job, Friday's startling unemployment figures suggest the need for caution if you think you might be vulnerable. A. C. Panella, who teaches communications at Pasadena City College in California , waited until she had a tenure-track job before buying a home in the Highland Park section of Los Angeles with her partner, Amy Goldman, a lawyer for a nonprofit organization. "We could afford the mortgage payment on one salary, were something to come up," Ms. Panella, 31, said. "It's really about being able to stay within our means."

For many first-time home buyers, that philosophy stretches to the down payment, too. Ms. Panella and her partner put down 20 percent when they bought their home in September, as did the Promans when they bought their home in the Lowry Hill neighborhood of Minneapolis .

Alison Nowak, 29, put just 3 percent down on a Federal Housing Administration-backed loan last month when she and her partner, Lacey Mamak, bought a $149,900, 800-square-foot home several miles south of where the Promans live. "Anything that is an opportunity also has a bit of risk," she said. Her house was in foreclosure before a plumber bought it and fixed it up. "One way we mitigated it was that we bought a really tiny house in a very good neighborhood."

One other strategy might be to buy new instead of used. Ian Shepherdson, chief United States economist for the research firm High Frequency Economics, says he believes that a steep drop-off in inventory of new homes is coming soon, thanks to a rapid decrease in home builder activity.

Since prices generally soften in the winter, it may make sense to start looking seriously once the mercury bottoms out. "If you look at new developments next spring, you may not have the choice you thought you would have or be in the bargaining position you thought you would be," Mr. Shepherdson said. Also, if you wait after June 30, you will miss out on a $7,500 federal tax credit for income-eligible first-time home buyers that works like an interest-free loan.

Finally, allow yourself to consider how it would feel if you bought and then prices dropped another 10 or 15 percent. It might not bother you if you plan to stick around. Plenty of people seem to be making a longer commitment to their homes. According to a survey that the National Association of Realtors released last month, typical first-time buyers plan to stay in their home 10 years, up from 7 last year.

Perhaps people are more aware that they will not be able to build equity as rapidly as others did in the real estate boom. Or they simply have more confidence in hard, hometown assets now than in other markets.

"We wouldn't let another decline bother us," said Michael Proman. "You can never time a bottom. This is a long-term investment for us, and it truly is the best investment we have in our portfolio right now."

Ready to buy, or waiting it out? Post a comment at nytimes.com/yourmoney or write to rlieber@nytimes.com.

Top 10 Most Expensive Zip Codes

Rene Burchell (RE/MAX Premier Properties IV) — Thu, 16 Oct 2008 08:26:58 -0500

Did you read Forbes Magazine's 100 Most Expensive Zip Codes? (10/8/08) Per the artical written by Matt Woosley, these markets are still thriving in today's roller coaster market and showing price appeciation within the last 12 months too!

Top-10 Most Expensive ZIP Codes & Median Home Sales Prices:

Fisher Island, Fla., Miami-Dade County, 33109. Median sales price: $3.85 million
Alpine, N.J. Bergen County, 07620, $3.59 million
Mill Neck, N.Y. Nassau County, 11765, $3 million
Newport Coast, Calif., Orange County, 92657, $2.8 million
Water Mill, NY, Suffolk County, 11976, $2.72 million
Atherton, Calif., San Mateo County, 94027, $2.7 million
Santa Barbara, Calif., Santa Barbara County, 93108, $2.7 million
Wainscott, N.Y., Suffolk County, 11975, $2.56 million
Rancho Sante Fe, Calif., San Diego County, 92067, $2.47 million
Beverly Hills, Calif. Los Angeles County, 90210, $2.41 million

Want to See My Latest Listings?

Rene Burchell (RE/MAX Premier Properties IV) — Wed, 10 Sep 2008 01:07:02 -0500

Visit me at http://ReneBurchell.com and log in as a VIP member. You can search the entire North Texas MLS and view in real time active properties now! Got questions? As a colleague on Active Rain, I am here for your real estate needs in the Dallas, Texas area!

Feel free to send me an emial I do hope to visit with you soon!

Thanks for visiting my blog, :)

Rene' Burchell

It's A Great Time To Buy... But Caution - There Will Be Stricter Loan Approvals!

Rene Burchell (RE/MAX Premier Properties IV) — Wed, 10 Sep 2008 00:46:23 -0500

The average rate on a 30-year fixed-rate mortgage fell to 5.88% on Tuesday, according to Bankrate.com. Since the Fannie Mae & Freddie Mac's whoes and the government rumored takeover, mortgage rates have dipped with hopes that buyers will take advantage of new opportunities to purchase homes on the market. However, with caution lower rates will come with stricter loan approval rules as well.

Senior financial analyst, Greg McBride at Bankrate.com, stated to USA Today "It still takes good credit, proof of income and money for a down payment. With the government taking over Freddie and Fannie, due to the bad loans on their books, the last thing Uncle Sam is going to do is loosen the lending standards now that the taxpayer is on the hook."

Mortgage Network's Brian Koss stated to USA Today "We got a huge increase of calls over the past two days." Koss adds, "It was pretty much a given five years ago that you'd get the loan. Now, you have all these hurdles you have to go through."

Should you buy now for fear a limited offer will run out?

No, McBride says. Buying a house is like getting married, he says; you don't marry because there's a sale at the bridal shop. "If you have good credit and money for a down payment, there are some bargains," he says. "But if you're six months away because you need to pay down debt or build up your savings, that's fine. Prices won't run away from you during that time."

Texas has proven to be steady with home sales. I continue to help many families currently move into the Dallas/Ft. Worth area. Feel free to contact me with any questions.

Quoted Sources: Some Info from Bankrate.com, USAToday

Pending Home Sales Rise, Wider Gains Anticipated as Buyers tap Housing Provisions

Rene Burchell (RE/MAX Premier Properties IV) — Sun, 10 Aug 2008 00:21:16 -0500

Source: National Association of Realtors (NAR)

WASHINGTON, August 07, 2008

Some improvement is projected for existing-home sales in the months ahead, with broader gains seen by the fourth quarter as buyers take advantage of new provisions provided through the recently passed housing stimulus bill, according to the latest forecast by the National Association of Realtors^®.

The Pending Home Sales Index,¹ a forward-looking indicator based on contracts signed in June, rose 5.3 percent to 89.0 from a downwardly revised reading of 84.5 in May, but remains 12.3 percent below June 2007 when it stood at 101.4.

Lawrence Yun, NAR chief economist, said sales have been in a pattern of rising and falling within a fairly narrow range. "The vacillation of data from one month to the next indicates a housing market in transition," he said. "The rise in pending home sales was broad-based with all four regions showing gains. This is welcome news because a rise in contract activity is necessary for an overall housing recovery. With a tax credit now available to first-time home buyers, increases in home sales could be sustained with the momentum carrying into 2009."

The PHSI in the South jumped 9.3 percent to 92.4 in June but is 16.6 percent below June 2007. In the West, the index rose 4.6 percent to 101.0 in June but remains 1.7 percent below a year ago. The index in the Northeast increased 3.4 percent to 79.6 but is 15.4 percent below June 2007. In the Midwest, the index rose 1.3 percent in June to 79.6 but is 13.3 percent below a year ago.

Sales gains have been consistently strong in recent months in Sacramento, Calif.; Las Vegas; and Ft. Myers, Fla., where affordability conditions have greatly improved.² The pickup in contract signings appears to be broadening with many affordable markets in mid-America now showing year-over-year gains, including Columbus, Ohio; Charleston, W.V.; Oklahoma City; and Colorado Springs, Colo. Pending sales have fallen significantly in Texas markets and in the Pacific Northwest - two regions with very strong local economies.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said the housing stimulus package will provide long-term relief. "Provisions to stem foreclosures are helpful, but a greater lift to the economy should come from higher mortgage limits, enhancements to the FHA loan program and the first-time home buyer tax credit," he said.

"These are excellent tools that will help buyers get into the market to take advantage of the unprecedented drop in home prices in many areas, as well as a wide selection of inventory, to make an investment in their future," Gaylord said.

With roughly 2.5 million first-time home buyers taking advantage of the temporary tax credit, existing-home sales are likely to rise 7.0 percent to 5.51 million in 2009 from a expected total of 5.15 million this year.

Yun said home prices did not fall as much as anticipated in the second quarter. "Buyers entering the hardest-hit markets, in some cases with multiple-bid offers, may have put a floor on prices," he said. " In addition, rising commodity prices and higher construction costs have resulted in a very unusual market today with existing-home prices being less than replacement building costs in some areas. Home prices are projected to increase 3 to 6 percent in 2009."

"Builders need to further cut production to help trim inventory. However, new-home sales are expected to bottom around the second quarter of next year with slight gains in the second half of 2009," Yun said. New-home sales are forecast to drop 8.8 percent to 464,000 in 2009 from 509,000 this year. Housing starts, including multifamily units, should fall 8.8 percent next year to 795,000 from 960,000 in 2008.

The 30-year fixed-rate mortgage, which also has been vacillating, is likely to trend up to 6.5 percent by the end of 2008, and then hold at that level for most of next year. NAR's housing affordability index is forecast to remain favorable this year, averaging 13 percentage points higher than in 2007.

Growth in the U.S. gross domestic product (GDP) is expected to be 1.7 percent this year and 1.5 percent in 2009. The unemployment rate is projected to average 5.5 percent in 2008 and 6.0 percent next year.

Inflation, as measured by the Consumer Price Index, is seen at 4.1 percent in 2008 and 2.6 percent next year. Inflation-adjusted disposable personal income is estimated to grow 1.7 percent this year and 1.1 percent in 2009.

The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

# # #

¹The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

²Market information is from unpublished snapshot data; please contact your local association of Realtors® for more information.

Second quarter metropolitan area home prices and state home sales will be published August 14. Existing-home sales for July will be released August 25; the next Forecast / Pending Home Sales Index will be released September 9.

Still A Buyer's Market

Rene Burchell (RE/MAX Premier Properties IV) — Sun, 10 Aug 2008 00:03:59 -0500

Source: Lawrence Yun, NAR Chief Economist

Modest near-term movement is expected in existing-home sales, with a recovery in sales seen during the second half of the year. The Pending Home Sales Index, NAR's forward-looking indicator based on contracts signed in May, fell 4.7 percent to 84.7 from an upwardly revised reading of 88.9 in April, and remains 14.0 percent below May 2007 when it stood at 98.5. Some pullback after a sharp increase in the previous month was expected. The overall decline in contract signings suggests we are not out of the woods by any means. The housing stimulus bill that is still being considered in the Congress is critical to assure a healthy recovery in the housing market, jobs and the economy.

But location has never mattered more than in the current market. Look at the pending home sales index for the West. While it's true the index slipped 1.3 percent to 97.5 in May in that region, it was 2.0 percent higher than it was in May of 2007. Indeed, some markets have seen a doubling in home sales from a year ago, while others are seeing contract signings cut in half. For instance, double-digit pending sales gains in May from a year ago were noted in Colorado Springs CO, Sacramento CA and Spartanburg SC. In addition, price conditions vary tremendously, even within a locality, depending upon a neighborhood's exposure to subprime loans.

Current real estate market conditions are positive for most buyers: still-attractive interest rates, a large inventory of homes available for sale, and many sellers willing to negotiate their prices - sometimes significantly. And in spite of the headlines surrounding issues with Fannie Mae and Freddie Mac - as well as the recent federal "takeover" of IndyMac - there is still mortgage capital out there. Credit may be tightened, but lenders are still happy to originate a mortgage loan to households who qualify. And remember: owning a home still provides long-term value - and most buyers today plan to remain in their homes for five or more years. Home buyers can get a great deal right now.

Concerns Remain

Yes, there are some concerns on the horizon. Although inflationary expectations appear to be under control for the time being, sharper consumer price gains could lead to notably higher mortgage interest rates in 2009. Based on current indicators, the 30-year fixed-rate mortgage is forecast to rise gradually to 6.5 percent by the end of this year, and then hold at that level for most of 2009. But note - that is still well below the "threshold" level of 7 percent. In spite of a month to month decrease from April to May, housing affordability - as measured by NAR's housing affordability index -- is improving this year and is likely to rise 15 percentage points to 127.0 for all of 2008.

Existing-home sales are expected to grow from an annual pace of 5.01 million in the second quarter to 5.75 million in the fourth quarter. For all of 2008, existing-home sales should total 5.31 million, and then increase 5.0 percent next year to 5.58 million. That is less than 100,000 unit sales off the annual pace last year.

The speed at which home prices have declined in a few select markets is unprecedented, but the large price declines in those areas have enticed bargain hunters back into the market. Interestingly, there have been reports of multiple bidding after the large price cuts, so it is possible that most of the price declines have already occurred in those markets. The aggregate median existing-home price (on a national basis) is projected to fall 6.2 percent this year to $205,300, and then rise by 4.3 percent in 2009 to $214,100.

New-home sales are a different story. They are likely to fall 32.3 percent to 525,000 in 2008 and decline another 3.4 percent next year to 507,000. In light of high inventory conditions, rising commodity prices and construction costs will curtail new home construction deep into next year. Housing starts, including multifamily units, will probably fall 28.7 percent to 966,000 this year, and then drop another 9.0 percent in 2009 to 879,000. The precipitous drop in starts is due in part to some overbuilding during the "boom" years, as well as the rising costs of construction. The median new-home price is expected to decline 3.2 percent to $239,300 this year, and then rise 5.3 percent in 2009 to $251,900.

Officially, the U.S. economy has still not drifted into recession. In fact, GDP growth in the first quarter of this year was revised upward from preliminary estimates - albeit at a slow 1.0 percent rate. Growth in GDP is forecast at 1.6 percent for all of 2008 and 1.4 percent next year - not spectacular, but still positive. Inflation, as measured by the Consumer Price Index, is forecast at 3.7 percent this year and 2.4 percent in 2009. Unfortunately, personal income gains are unlikely to keep pace with rising prices. Inflation-adjusted disposable personal income is projected to grow 1.5 percent in both 2008 and 2009.

Conclusion

So, what does all this mean for housing consumers? It will continue to be a buyer's market for a while. Obviously, we will need to watch developments with credit markets and the GSEs, but if a potential buyer can qualify for a mortgage, there is plenty of choice out there.

Home For Sale in McKinney, TX

Rene Burchell (RE/MAX Premier Properties IV) — Sat, 09 Aug 2008 12:41:02 -0500

Spectacular Home Built By Highland Homes, Located in McKinney, TX $309,900! Take virtual tour for more pictures and visit my website for more information. http://www.ReneBurchell.com

More photos: https://homesite.obeo.com/viewer/unbranded.aspx?tourid=475418&refurl=

Do You Have A Dallas, TX Referral?

Rene Burchell (RE/MAX Premier Properties IV) — Wed, 06 Aug 2008 08:19:27 -0500

Hello my fellow RE/MAX friends, I wanted to reach out to you to let you know you have a friend in the Dallas, Ft. Worth Texas area. If you have any referrals or you need help with your clients to sell, I am here for you! Let me know where you are located, I would love to add you to my RE/MAX referral list.

Have a productive day!

How is the market where you live?

Rene Burchell (RE/MAX Premier Properties IV) — Wed, 06 Aug 2008 08:03:27 -0500

Hi all,

I am curious to know how the market is treating you in your town?

Dallas, Texas

Rene Burchell (RE/MAX Premier Properties IV) — Wed, 06 Aug 2008 01:06:04 -0500

Dallas, Texas

Time to lock in your mortgage rate

Rene Burchell (RE/MAX Premier Properties IV) — Wed, 06 Aug 2008 00:45:23 -0500

Home buyers may find big savings in locking in mortgage interest rates.

NEW YORK (CNNMoney.com) -- Since mortgage interest rates are on the rise, home buyers can save considerable cash by locking in a reasonable rate when they find one.

During the housing boom, interest rates were extremely low - generally between 5.5% and 6.5% - and very stable. So borrowers often didn't bother to ask lenders to lock in their rates regardless of market fluctuations. If one good interest rate deal disappeared, another one was generally right around the corner.

But today the mortgage market is very volatile, and rates are trending upwards. So losing out on a good deal may mean it's gone forever. If buyers see a bargain, say experts, they should pounce.

"If you hear of a rate that seems to be much better than the rest of market, get it in writing and lock it in," said Steve Habetz, a veteran mortgage broker in Connecticut.

Mortgage giant Freddie Mac (FRE, Fortune 500) reported Thursday that the average rate for a 30-year fixed stood at 6.52%, up from less than 6% in May.

Rates on the rise

A panel of analysts surveyed by Bankrate.com - including Cameron Findlay, the chief economist for LendingTree.com; Mick Larson, real estate analyst at Weiss Research; and Dan Dowling, president of United Mortgage Capital Corp. - expects rates to go up in the next six weeks.

With the threat of inflation growing and investors wary of buying mortgage securities, other forecasters have predicted rates will hit at least 7% by the end of the year.

For every half point interest rate increase, the monthly payment on a typical mortgage of $200,000 jumps nearly $70. That adds up to more than $800 a year, and $8,000 in the first 10 years of a 30-year mortgage alone.

Locking in a rate is easy, as long as you have a contract or at least a binder on a home. Just tell your mortgage broker and he or she will give you a commitment in writing. Locks are available for as long as 60 days, according to Habetz, at very low cost.

Locking in for 60 days may cost only an eighth of a point extra, turning a 6.5% loan into a 6.625% one. Paying that extra eighth of a percent makes sense if the locked rate is below market, or if you expect rates to rise.

"More than 60 days and the lender is usually looking for cash up front," said Habetz.

Habetz had an offer from Wells Fargo (WFC, Fortune 500) several weeks ago that beat anything else available. It was for a 5-year adjustable rate mortgage with an introductory rate of 4.875% - at least a full percentage point lower than competing offers.

"It lasted only two or three days," he said, "and all we had time to do was to get the customers we were already working with into the loan."

Those customers probably saved themselves $5,000 or so for every $100,000 they borrowed over the first five years. The amazing part of this story, to Habetz, was that not all his clients took advantage of the offer.

"Some of my customers said, 'That's an attractive offer. If it's that good, it will probably get better,' " he said.

Wrong. It only got worse, and those people locked themselves out of a great deal.

But locking in your rate isn't entirely risk-free. After all, rates might actually go down.

"When rates go down," said Habetz, "most lenders won't take [your rate] down with them unless rates drop substantially. Then they may give you the new rate plus an eighth of a point."

Certainty in an uncertain market

But that scenario appears unlikely.

Concerns about inflation are helping to push rates higher. "Inflation has gone from the back burner to the front," said Greg McBride, a senior financial analyst for Bankrate.com.

At the same time, nervous investors in mortgage backed securities, are demanding higher rates for buying these bonds in what they deem a very risky market. That translates into higher rates for borrowers.

So locking in a good deal now should mean a lower rate for most borrowers. And besides saving them money, a lock should take some of the uncertainty out of financing a home purchase, since buyers can determine exactly what their monthly home ownership expenses will be several weeks before closing.

"There are times in your financial life when you should be aggressive and there are times when you should be conservative," said McBride. "When you're buying a house and looking at mortgage rates, that's a time to be conservative."

Source: CNN Money -By Les Christie, CNNMoney.com staff writer Last Updated: August 4, 2008: 8:25 AM EDT

Seller funded down payment assistance is no longer available after October 1st

Rene Burchell (RE/MAX Premier Properties IV) — Wed, 06 Aug 2008 00:16:09 -0500

First Time Homeowner Tax Credit:

(Available for homes purchased April 1, 2008 through June 30, 2009)

The new law will extend a tax credit of up to $7,500 to first time homebuyers. The tax credit is for 10% of the purchase price, up to $7,500, but phases out for higher-income homeowners. This is a tax credit, not a deduction. It reduces the homeowner's tax bill by up to $7,500 for the tax year in which the purchase was made (please note that taxes must be filed). It is a one time credit.

There is a catch in that the money has to be repaid over 15 years, starting two years after the home is bought. The tax credit is truly an interest-free loan. If the tax credit is taken, the individual's income tax bill will increase by $500 a year for 15 years. If the house is sold before the money is paid back, then it will be due and payable upon sale

FHA Modernization Act:

100%financing of FHA loans is still available until Sept 30.

Seller funded down payment assistance is no longer available after October 1^st. The loan must be final approved on September 30^th and must close by no later than October 31st.

Source: WR Starkey, Walter Scott

Fannie Mae to Increase Cash Incentives

Rene Burchell (RE/MAX Premier Properties IV) — Tue, 05 Aug 2008 00:58:53 -0500

Fannie Mae to Increase Cash Incentives
Monday, August 04, 2008

WASHINGTON, D.C. - As part of its ongoing efforts to support borrowers facing foreclosure and promote responsible servicing practices, Fannie Mae will increase the cash incentives paid to servicers that pursue alternatives to foreclosure. "We are working closely with our loan servicing partners to make the process of helping borrowers keep their homes as streamlined as possible and we continue to enhance delegation to ensure decisions can be made quickly. These loss mitigation incentives encourage our servicers to implement workout solutions and drive better processing and response time," said Jason Allnutt, vice president for credit loss management at Fannie Mae.

Fannie Mae will increase loss mitigation incentives paid to servicers for foreclosure prevention options available to help a delinquent borrower prevent foreclosure. The company continues to pursue a variety of options to work with a delinquent borrower including repayment plans, HomeSaver Advance^TM, loan modifications, pre-foreclosure sales, and deeds-in-lieu of foreclosure. Incentive payments for repayment plans (where a borrower makes up the past-due payments over time) will be doubled to $400. Fannie Mae will begin an incentive payment of $700 for a loan modification where the terms of the loan are renegotiated. As an additional effort to help cash-strapped borrowers, Fannie Mae will prohibit servicers from assessing a modification fee to borrowers.

The recently announced HomeSaver Advance offers servicers a solution for borrowers experiencing a temporary financial hardship. HomeSaver Advance provides an advance to cover past-due mortgage payments in exchange for a separate, unsecured loan. The HomeSaver Advance incentive structure will be modified to pay servicers based on the performance of the mortgage loan, with an initial incentive of $200 and an additional $500 to be paid after the borrower makes three consecutive timely scheduled payments. Incentive payments for short sales (pre-foreclosure sales) will range from $1,000 to $1,500 and payments for deeds-in-lieu of foreclosure will increase to $1,000.

Source: Originator Times

G.R.E.E.N Bill Provides Incentives to Lenders

Rene Burchell (RE/MAX Premier Properties IV) — Tue, 05 Aug 2008 00:50:46 -0500

G.R.E.E.N Bill Provides Incentives to Lenders
Monday, August 04, 2008

WASHINGTON, D.C. - The House Financial Services Committee has unanimously passed Rep. Ed Perlmutter's (D-CO) H.R. 6078, the Green Resources for Energy Efficient Neighborhoods. The bill provides incentives to lenders and financial institutions to provide lower interest loans and other benefits to consumers, who build, buy or remodel their homes and businesses to improve their energy efficiency. This timely legislation reflects foresight and the considered input of a broad coalition of housing advocates, financial institutions, government leaders, developers, and the environmental community.

"This legislation proves it is easy to be green. The GREEN Act will help revitalize our economy by making energy efficiency practices more affordable, accessible and achievable by consumers, businesses and government entities. By prioritizing energy efficiency practices, we can ease the woes of homeowners, lenders, financial markets, builders and our environment," said Perlmutter.

"I look forward to working with my colleagues to pass this measure through the full House in September. In order to save green, we must go G.R.E.E.N. This bill is another tool to move our country toward energy conservation. Our infrastructure is old, and when renovation or rehabilitation efforts commence we must take the opportunity to use current technologies and standards to develop healthier, more sustainable neighborhoods."

Perlmutter's legislation has broad support from consumers, industry, financial institutions, and developers. H.R. 6078 is the result of a year-long Energy Efficiency Task Force focusing on how to incorporate energy efficiency into the financial services sector..

The bill will now go to the full House of Representatives for a vote

Source: Originator Times

Best Cities To Buy a Home; Dallas #6!

Rene Burchell (RE/MAX Premier Properties IV) — Sat, 02 Aug 2008 13:42:10 -0500

Source: Forbes.com
	Real Estate Best Cities To Buy A Home Maurna Desmond, 07.14.08, 6:00 PM ET Houston, we don't have a housing problem. The city's $152,500 median home sale price is up 6.6% from 2005. It boasts a low vacancy rate and an oil-rich economy. Throw in a bubbling entrepreneurial tech scene, and you've got four factors that put Houston on the top of our list of best places to buy a home. San Francisco, Charlotte, N.C., Jacksonville, Fla., and St. Louis, Mo., are other areas buyers can feel safe investing in. In Depth: Best Cities To Buy A Home We examined the country's 40 largest metropolitan areas and looked at where home prices have appreciated over the last two years. We also measured tightening vacancy rates. These metrics indicate places where buyers are investing in homes in order to live, not just make a quick buck, and where the housing market is relatively solid. We culled our vacancy and home price information from the U.S. Census Bureau and the National Association of Realtors. The average vacancy rate across the major metro areas was 2.88%, and the average percent appreciation was just .07% over the last two years.

	With lending tight, we also factored in the spread between a monthly rent check and a mortgage payment at the median level (assuming that the down payment was 10% and the fixed interest rate is 6.25%). Encino, Calif.-based real estate brokerage firm Marcus & Millichap provided stats on median monthly rents. Cities where a mortgage payment was close to, or less than, the average rent were given a higher score. For instance, in Cleveland the average rent is $702, and the average mortgage is $565.78. With a lower monthly payment, tax incentives and the opportunity to build equity, it makes sense to buy here. In stark contrast, San Jose, Calif., has an average monthly mortgage payment of $4,322.33, versus an average rent of $1,612. Lots To Like In The Lone-Star State Texas dominated our lineup of mortgage-worthy areas. Thanks to a business-friendly tax environment, many large corporations call the Lone Star State home, which creates jobs and tax revenue. The University of Texas campus provides young blood and research-related jobs to No. 2 city Austin. This state capitol is a hip area on the rise. The vacancy rate has fallen by 37.5% in the last 24 months to just 1.5%, despite a lot of building in recent years. And buying isn't much more expensive than renting. An average mortgage payment is $1,022.40, and average rent hits $767. San Antonio, No. 5, and Dallas, No. 6, made the list thanks to affordable housing, which continues to appreciate. In both cities, the median home price hovers around $150,000, and a monthly mortgage payment of around $800 is pretty close to what one pays in rent. If you can pony up the down payment, these are great areas to live. Coast-to-Coast Sweet Spots Philadelphia landed at No. 4, with homes appreciating by 9.1% in the last two years and vacancy rates staying low at 1.9%. This university town, which plays host to the University of Pennsylvania, certainly has its charm. A city on the rise with a tempting cost of living, Philly is a great place to buy a new home. *What's housing like in your area? Weigh in. Post your thoughts in the Reader Comment section below.* The South made a nice showing with Charlotte, N.C., Jacksonville, Flo., and Atlanta, Ga., making our list. Charlotte and Jacksonville have surged in price by 12.9% and 8%, respectively. Atlanta has seen huge amounts of growth and remains reasonable with a median home price of $172,000. San Francisco, this year's best city for young professionals, came in at a respectable No. 8. While housing certainly isn't cheap in the City by the Bay, it is definitely in demand and continues to appreciate. For a buyer, San Francisco offers a culturally rich and beautiful city that is chock full of opportunity.

Provisions of the housing bill that President Bush signed into law

Rene Burchell (RE/MAX Premier Properties IV) — Fri, 01 Aug 2008 00:30:59 -0500

Provisions of the housing bill that President Bush signed into law Wednesday:

• Gives the Federal Housing Administration $300 billion in new lending authority and relaxes standards to provide affordable, fixed-rate mortgages to an estimated 400,000 debt-ridden homeowners. Any losses will be covered by an affordable housing fund financed by Fannie Mae and Freddie Mac, the government-sponsored companies that finance mortgages.

• Allows the Treasury Department temporary authority to lend money to Fannie and Freddie or buy their stock to avert a collapse of one or both of the mortgage giants. The authority expires on Dec. 31, 2009.

• Creates a new regulator and tighten controls on Fannie and Freddie, including power for the regulator to approve pay packages for company executives. Creates a new affordable housing fund drawn from their profits. Permanently raises the limit on the loans they may buy to $625,000 in the highest-cost areas. Allows them to buy loans 15 percent higher than the median home price in certain cities.

• Provides $3.9 billion in grants to the hardest-hit communities for buying and fixing up foreclosed property.

• Modernizes the FHA and allows it to back loans for riskier borrowers. Permanently increases the size of loans the agency may insure to $625,000 in the highest-cost areas. The agency can insure loans 15 percent higher than the median home price in certain cities.

• Prohibits the FHA from insuring mortgages in which the borrower's down payment is paid by the seller, beginning on Oct. 1, 2008. Places a one-year moratorium prohibiting the agency from charging premiums based on the riskiness of the homeowner, until Oct. 1, 2009.

• Provides $15 billion in housing tax breaks, including for low-income housing. Gives a credit of up to $7,500 for first-time home buyers who purchase residences between April 9, 2008, and July 1, 2009. Allows people who don't itemize their taxes to claim a $500-$1,000 deduction on their 2008 property taxes.

• Gives states an additional $11 billion in tax-free municipal bond authority for low-interest loans to first-time home buyers, construction of low-income rental housing and refinancing subprime mortgages.

• Offers protection from investor lawsuits for mortgage holders that modify loans to borrowers who are in default or about to default.

• Provides $180 million for pre-foreclosure counseling and legal services for distressed borrowers.

Information provided by:

Walter "Scotty" Scott
Senior Loan Officer
WR Starkey Mortgage, LLP
Office: 972.599.5463
Cell: 630.215.4008
eFax: 866.222.1181