financial: Palos Verdes Cash Buyers
- 03/16/11 11:44 AM
How many Palos Verdes homes sell for cash without any financing? In 2010, 19.4% of Palos Verdes single family home sales were all cash transactions and in January of this year, 13.5% of single family home sales in Palos Verdes were all cash.
Lauren Beale in a recent Los Angeles Times article, "More home buyers offer cash deals" gave statistics for the all of California and then specific cities. In the past, all cash buyers usually meant foreclosed property buyer but that is not currently true. Two reasons were given - the challenge of getting a jumbo loan (over $729,250) and speculation … (1 comments)
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financial: Adjustable vs Fixed Rate Mortgages
- 02/11/11 01:44 PM
Interest rates have been at historic lows since last year and all my clients have opted for fixed rate mortgages for their Palos Verdes homes. According to a recent Los Angeles Times article by Kenneth R. Harney, adjustable rate mortgages are becoming more popular. "Adjustables accounted for just 3% of new home loans in early 2009 but are projected to be picked by nearly 1 out of 10 borrowers in 2011."
I thought that was a surprising statistic so I called a local lender for his input. He had not read the article but confirmed that last year he had done … (2 comments)
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financial: Have You Updated Your Insurance?
- 02/07/11 01:01 PM
Are your insurance policies current? Our lives continually change and we often forget to change our insurance policies. For example, have you done extensive renovations to your Palos Verdes home? Have you acquired new valuables? Below is a list of ten questions to ask yourself (courtesy of RIS Media and Lowes):
Have you gotten married or divorced? Have you had a baby? Did your teenager get a driver's license? Have you switched jobs or experienced a significant change in your income? Have you done extensive renovations on your home? Have you decided to buy a vacation or potential retirement home? … (1 comments)
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financial: More Loan Fees?
- 01/22/11 12:19 PM
Owners of Palos Verdes real estate as well as the rest of the country are going to be hit with additional loan fees from Fannie Mae later this Spring when they purchase or refinance a home. Freddie Mac started charging these fees before Thanksgiving. According to a recent LA Times article by Kenneth R. Harney, these two organizations "fund or guarantee upward of two-thirds of new mortgage originations."
Some examples of these new fees are - A buyer with a FICO score over 800 needing a $300,000 loan and less than 25% down would have to pay an additional $750 … (0 comments)
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financial: Is Your FICO Score Reflecting Your Perfect Payment History?
- 12/03/10 12:27 PM
Palos Verdes homes owners have heard stories or have actually experienced equity credit lines being reduced by financial institutions. A letter is usually sent to the homeowner explaining that market conditions have dictated this reduction. For example, a homeowner may have originally had a $60,000 home equity line and now it has been reduced to $35,000; the homeowner has currently used $30,000 of their original credit line. Most believe that their credit scores are unaffected and that is incorrect.
Let's go a step further. Your credit card limit was also reduced from $20,000 to $10,000 and your balance this month (after … (1 comments)
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financial: When Down is Good!
- 08/12/10 12:58 PM
Owner and buyers of Palos Verdes real estate have been treated to a year of low mortgages - a wish come true. According to a recent Los Angeles Times article, "interest rates are the lowest since Freddie Mac, a government-sponsored corporation that purchases home loans from lenders, began tracking the 30-year loan in 1971″ Click here to view the entire article with rate information.
What an incredible opportunity this has been to both refinance and to purchase a new home. This year, it seems that many Buyers have decided to stop waiting and buy their new home. Here on the … (1 comments)
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financial: New Changes to Fannie Mae Appraisals
- 07/23/10 06:51 AM
We spoke (complained), and were heard. Fannie Mae told lenders on June 30, 2010, that they "prohibit lenders from changing appraisals" according to a LA Times article Sunday (click here for full story). This is good news for owners of Palos Verdes real estate and buyers also.
Here is what has been happening since the new May 2009 Guidelines. Lenders have been ordering appraisals from Management Companies who sometimes choose an appraiser from out of the area who may have only "minimal access to local realty data" and the appraisal comes in low. Additionally, "Lenders unilaterally may be lowering the numbers on the … (3 comments)
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financial: Is Your Home Equity On The Rise?
- 02/25/10 09:34 AM
Owners of Palos Verdes homes will be pleasantly surprised to know that the answer is "Yes" according to Kenneth R. Harney in a recent Los Angeles Times article. I think this is great news and don't understand why it was buried on the 12th page of the Business section.
"According to the Fed's most recent ‘flow of funds' survey, homeowners' net equity grew by nearly $1 trillion from the recession's nadir in the first quarter of 2009 through the third quarter. From June 30 through Sept. 30, equity rose by $418 billion....After three years of unprecedented shrinkage in home equity - and three years … (2 comments)
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financial: Remodeling Cost vs. Value 2009-2010
- 01/15/10 05:38 AM
What home improvements and remodeling projects give the greatest return on their investment? For owners of Palos Verdes homes (and the rest of Los Angeles County who choose upscale remodeling), the answer for 2009-2010 is siding replacement, window replacement and a grand entrance according to an article in the latest National Association of Realtor's magazine which came from a survey by Remodeling magazine.
"The majority of the 10 remodeling projects with the best return on investment nationally are a testament to pragmatism. Six of the 10 projects - siding and window replacement using a variety of materials - involve home maintenance that costs less than $14,000...Additional … (1 comments)
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financial: What Are Loan Points?
- 01/14/10 07:17 AM
Buyers of Palos Verdes homes often ask what a loan point is. My clients who are refinancing also have the same question. Here is a very concise explanation provided by a Bank of America loan officer:
What exactly are "points"? What tax benefits accrue from "points"? What is the "APR" and in what ways is it important? And what are the benefits to home sellers who may consider paying a buyer's "points"? We look at the basics here, urging you to take your specific questions to your tax advisor, while hoping to help you better formulate those questions.
Traditionally, a … (1 comments)
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financial: New Alliance With Bank of America
- 11/23/09 10:26 AM
Remax Palos Verdes/Execs has formed a new alliance with Bank of America which will benefit our clients in several ways. We now have access to the largest lender in the jumbo market. Bank of America will loan 80% up to a $2,000,000 loan to qualifying borrowers. This will help buyers (and therefore sellers) of Palos Verdes real estate. Remax Palos Verdes/Execs clients will be given priority and our agents will be given a source code so that we can track the loan through all stages.
We have a local Legacy Bank of America office which has their own loan processing center … (3 comments)
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financial: Will You Qualify For A Move-Up Homebuyer Tax Credit?
- 11/21/09 10:50 AM
This Homebuyer TaxCredit of $6,500 (married couple) is available as of November 6, 2009 for couples with combined adjusted gross incomes that do not exceed $225,000 (for singles a $3,250 credit and adjusted gross income not exceeding $125,000). You must be in contract on a new home by April 30, 2010, and must close escrow by June 30, 2010.
The homeowner must have owned the prior residence for a consecutive 5 out of the last 8 years. The new house cannot cost more than $800,000 and must become your main residence as of the date of close of escrow. You do not … (1 comments)
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financial: Mixed News on Defaults/Foreclosres for Palos Verdes
- 11/10/09 05:20 AM
Yes, we do have foreclosures in Palos Verdes real estate. Currently there are 2 active single family residences and 1 condo that are REOs (or bank-owned properties). 669 Via Del Monte, Palos Verdes Estates, is a 4 bedroom, 3 bath, 3,469 square foot home listed for $1,449,900. 4053 Via Pavion, Palos Verdes Estates, is a 4 bedroom, 3 bath, 2,336 square foot home listed for $999,900. 3601 W Hidden Lane #121, Rolling Hills Estates, is a 2 bedroom, 2 bath, 1,131 square foot condo listed for $415,000.
Although Palos Verdes is not immune to foreclosures, our rate is much lower than most of … (0 comments)
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financial: Are We There Yet?
- 09/16/09 06:05 AM
Echoes of this oft-repeated question from our youth, are rumbling through the home buying community. Have we "hit bottom" in the Palos Verdes real estate market? Even the experts do not know. The Los Angeles Times August 17th edition tackled this subject regarding real estate in all of Southern California.
There were several stories of "experts" who predicted the housing bubble, sold their own houses and have been renting. Most sold a little too early and not at the peak. And now, when to buy back into the market? Dean Baker, an economist has bought back into the market because "The … (2 comments)
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financial: Financial/Mortgage Update
- 08/12/09 08:27 AM
"The typical monthly mortgage payment for Southern California buyers last month was $1,193, up from $1,052 in May. Adjusted for inflation, current payments are 46% below typical payments in the spring of 1989, the peak of the prior real estate cycle" states the Los Angeles Times on July 16th. I checked and in 1989, the average interest for a 30-year fixed mortgage was 10.32%. That is twice as much as today's rates! Click here to continue reading......
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financial: Certified Distressed Property Expert
- 08/11/09 08:35 AM
I have just earned the prestigious Certified Distressed Property Expert designation having completed extensive training in foreclosure avoidance and short sales. Although we have not experienced many of these sales in Palos Verdes real estate, more are expected in the future. In a nutshell, I learned how to assist homeowners who are either behind in their mortgage payments or are having trouble making those payments identify their options.
I have worked with both buyers and sellers of short sales in the South Bay. A short sale allows a cash-strapped seller to repay the mortgage at the price that the home sells for, even … (2 comments)
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financial: Financial/Mortgage Update
- 07/10/09 06:21 AM
Mortgage rates have been see-sawing up and down a bit for the Palos Verdes real estate market. A 30-year fixed conforming loan is 4.875% which is a quarter percent higher than 2 months ago and a quarter percent lower than last week. A 5/1 Year ARM is 3.875% and a 5/1 Interest Only loan is 4%.
30-year Fixed Jumbo rates are 6.125% for borrowers with FICO scores over 740 and 30% down. A jumbo 5/1 Year ARM is 5.125% and a 5/1 Interest Only loan is 5.25%. Click here to continue reading.....
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financial: Where Are The Jumbo Loans?
- 06/22/09 06:40 AM
The availability of Jumbo Loans have affected the sale of Palos Verdes real estateover $1,200,000. It is a little tricky because there are jumbo loans available at rates that match May of 2008 - 6.875%. However, the number of buyers who can qualify for those loans has been diminished because these loans must be have full income verification and the borrower must have FICO scores of 700 or above. Click here to continue reading......
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financial: Appraisal Rules Not Smelling So Good
- 06/05/09 05:43 AM
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Last week Area Appraisal Management Company spoke at our Palos Verdes real estate office meeting to bring us up to date on the new appraisal rules - HVCC or Home Valuation Code of Conduct that went into affect May 1st. In the Sunday LA Times, Kenneth R. Harney wrote an article on the very same subject. They both gave the same information and it is not necessarily good. Click here to read more....
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financial: Positive Real Estate News Is Bubbling Up
- 03/31/09 05:22 AM
"Hope Stirs in Housing Market" was the headline in the LA Times front page on Wednesday. Peter Hong's positive piece states "Home prices in Southern California held steady in February for the first time in nearly a year, figures released Tuesday show, as low prices brought buyers back into the market." On top of that home construction rose nationwide. Click here to read more.....
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