pasadena market conditions: Creative Financing Can Work for You
- 07/24/08 04:42 AM
One of the most important trends in the current real estate market is creative financing. Creative financing involves borrowing money from sources other than institutional lenders and banks. Buyers have used it in past market downturns when bank financing became less desirable. The most common form of creative financing is seller financing, in which the seller lends some or all of the money to the buyer. And then because most home sellers don't want to be lenders, they sell the loan to an investor who does want to lend money and actually receive payments. Here's how it might work... Joe is … (0 comments)
pasadena market conditions: Is it the Right Time to Buy Real Estate in Pasadena, CA? - Part 4 of 4: Price
- 06/23/08 07:25 AM
At last we come to price in our series. What could there be to write about price, Sam? Buy low, sell high just like the stock market, right? Yes, that's true but it's not quite as simple to use that rule for Pasadena real estate as it is for the stock market. If you want to buy shares of stock and you like Google, you would watch the price of Google each day in the newspaper or on the web. And you might keep your eye on the S&P 500 and NASDAQ indexes to see whether prices are rising and falling … (0 comments)
pasadena market conditions: Is It The Right Time to Buy Real Estate in Pasadena, CA? Part 3 of 4: Mortgage Rates
- 06/20/08 12:12 PM
The third thing to consider in your purchase of a Pasadena home are the mortgage rates. Rising or falling mortgage rates can affect your payments similar to rising or falling prices. Even if prices drop 5% more in Pasadena, rises in mortgage rates could make that cheaper house more expensive to pay for. Since 2005 mortgage rates for 30-year fixed mortgages have fluctuated between a low of 5.48% on January 24 of 2008 and a high of 6.80% on July 20, 2006 according to the Freddie Mac Primary Mortgage Market Survey®. As of the writing of this post, interest rates have … (0 comments)
pasadena market conditions: Is It The Right Time to Buy Real Estate in Pasadena, CA? Part 2 of 4: Your Financial Situation
- 06/11/08 04:34 AM
The second thing to consider is YOUR OWN FINANCIAL SITUATION. The "right time" is different depending on whether you're a middle-income first time home buyer or someone with higher income and equity already in your home. For first time buyers this is a great market because sellers will be more likely to accommodate weaknesses in your offer because they're just glad to be getting an offer. If you've got a low down payment, if you want the seller to pay some closing costs, or even if you want to do a lease-option (a rent-to-own arrangement) sellers will be far more likely … (1 comments)
pasadena market conditions: Is it the Right Time to Buy Real Estate in Pasadena, CA? - Part 1 of 4: Taste
- 06/10/08 05:09 AM
"Okay, so the market's dropping, but is it the right time for me to buy?" This is the real estate question on many people's minds around Pasadena, but for the average person it's difficult answer apart from hearsay and speculation. So I'm writing this post to give you readers a solid framework to answer this question for yourselves. The key issues to consider With all of the media fixation on price, it's easy to assume that this is the only variable to consider; that if you find a great deal you should definitely buy right away. While price is very important, … (4 comments)
One of the most important trends in the current real estate market is creative financing. Creative financing involves borrowing money from sources other than institutional lenders and banks. Buyers have used it in past market downturns when bank financing became less desirable. The most common form of creative financing is seller financing, in which the seller lends some or all of the money to the buyer. And then because most home sellers don't want to be lenders, they sell the loan to an investor who does want to lend money and actually receive payments.;)
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