ukiah: If the fed's don't buy mortgages...and FNMA is liquidated.... - 09/02/14 07:04 AM
If the fed's don't buy mortgages...and FNMA is liquidated.... anyone giving any thought to what happens if our government decides to really liquidate FNMA and FHLMC? Who is going to be the buyer of all of these real estate loans? Just a reminder, that over the last few years,  that the primary buyer of mortgage backed securities has been the  US Federal Reserve thus keeping the yield low. When they exit this market, i think we all know that rates are going to increase. What would happen if FNMA and FHLMC who's primary responsibility is to purchase loans from lenders is liquidated … (0 comments)

ukiah: Values on the rise but wages are not. - 08/28/14 01:25 AM
As I was watching CNBC this morning, Charles Biderman was discussing how stock prices have gone up dramatically while wage growth has only gone up 3% a year. That got me to thinking that if real estate prices are rising 15-20% in some areas, an wages are only rising 3%, we are going to have an issue with affordability. 
In some of the larger urban areas, like San Francisco and San Jose, CA., salary and net worth are substantially higher. I suspect they will be able to maintain the apprecation of values. However, in some of the smaller rural areas, this is going to be … (0 comments)

ukiah: Market Has Slowed. What Does It Mean? - 08/27/14 05:01 AM
In my area of Ukiah, CA. which is in Mendocino County, CA. (Northern California) we are finding that buyer activity has slowed. What does it mean? That is the question that was being discussed today at a meeting of the local realtor chapter. I have given some thought to this and perhaps it's nothing more than summer slow down. Last summer home sales also slowed during this same time frame and then picked back up in the fall after the kids were back in school. 
The other thought that I have is that home values have risen so much over the … (1 comments)

ukiah: Co-Branding With A Realtor And Sharing Advertising Cost- - 08/25/14 07:37 AM
Co-Branding with a real estate agent is a good way to generate leads and solidify a referral relationship.  I am sharing the cost of advertising on a web site in Ukiah, CA. and so far the realtor has generated a few leads or enough interest to pay for the cost of the advertising.
Part of the process is  what web site to advertise on, how much do you want this to cost you and what is your expectation? We both agreed to pay for some AdWord advertising on Google and so far the realtor seems to be pleased by the results. My … (0 comments)

ukiah: Social Media. Is the Hype Worth It? - 08/21/14 02:53 AM
I do wonder if the Hype about Social Media is way overblown? I post to all the usual outlets but question whether it is a waste of time or if someday I might actually get somebody who says to me "found you on Google + or Facebook!" I am easily found if somebody types in certain key words but I think i have only had one borrower ever say to me "found you on the internet". All other referrals are usually from a realtor. I have been spending a bit more time reading about social media so perhaps I will be … (1 comments)

ukiah: In Ukiah, CA. You Need To Be Pre-Approved For A Loan To Buy A Home - 08/20/14 02:16 AM
In Ukiah, CA. You Need To Be Pre-Approved For A Loan To Buy A Home
When shopping for a loan in Ukiah, CA, it is important that you have been Pre-Approved for a mortgage loan. The market is very competetive and if you havent been Pre-Approved your offer will no doubt NOT be accepted by the seller.
It is also important that you use a local lender. Ukiah, CA. is in Mendocino County, CA.  and this area, because of rural property, has many more lending issues than a typical home in a subdivision in an urban area. Getting Pre-Approved by a … (0 comments)

ukiah: Northern California Markets Reaching Equilibrium? - 08/19/14 08:23 AM
In my marketing area, Ukiah, CA. or Mendocino County, business seems to have slowed a bit this summer. Maybe its just that time of year as it was the same last summer. Or, are the markets getting to the point where the price appreciation has made it more difficult for the buyers to qualify? Or perhaps its not longer cheaper to purchase then rent? I believe that the latter will slow things down.
In 2010/2011, one could argue that the cost of renting was more then purchasing a home so why not buy? I dont think we can say the … (0 comments)

ukiah: Rates are great unless your credit score is 640 - 08/15/14 07:48 AM
A reminder to everyone that not every borrower gets the same rates. On a conventional loan, if you have a credit score of 640 there is a cost for this. The LLPA depends on the loan to value. I am doing a loan now and this borrower who is doing a cash out refinance loan is going to pay an extra .25 to the rate because of the credit score. Sometimes you can pay down debt and do a "rapid-rescore" to increase the credit score and get a better rate. Next time your borrower is faced with this issue ask the … (2 comments)

ukiah: Housing Recovery In California #Ukiah, #Willits, #MendocinoCounty - 08/16/13 04:49 AM
Then number of home sales in California for the month of July,  surged 17% over June with 48,000+ existing homes changing hands. The July sales figure were the highest for any July since 66,929 homes sold in July 2005!
The median price paid for a home in California in July was $363,000, 3.1 percent above the June median of $352,000 and up 29.2 percent from 12 months earlier when the median was $281,000. July marked the 17th consecutive month in which the median price rose on an annual basis. The highest median in the state was recorded in March, April, and … (0 comments)

ukiah: New Home Sales Up 14%, Could This Be Cannibalizing Existing Home Sales? - 08/09/13 02:44 AM
This morning a new report indicated that new home sales are up 14%. The key word there is "new". Could the new home sales be taking away the home buyer from the existing home sales? In the market area's i service which is #Ukiah and #Willits in #Mendocino county, #CA. this summers sales seem to be "lackluster"!  There are not any new home subdivisions  in my marketing areas, but, in other places where there are, could be a reason for a slow down in existing home sales?
In many parts of the county there has been reports of a slowing of … (0 comments)

ukiah: Distressed Loans Hit a Five Year Low, Except FHA! - 08/08/13 04:19 AM
Great to hear that delinquent loans fell to a five year low in the second quarter of 2013 (reported by the Mortgage Bankers Association). However, FHA loans increased. Why is this a big deal? The US Government doesnt want to be in an insurer of conventional loans as mentioned this week with the potential closing of #Fanniemae and #Freddiemac. But, it will continue with #FHA which the government does and will continue to insure. I am not sure I understand why you would want to wind down two entitites that are now making money and have paid back 3/4 of what … (0 comments)

ukiah: Market Turning To Normal? - 08/07/13 08:10 AM
Are prices beginning to stablalize and property sales starting to slow? Are borrowers quiet? Is it just summer? Some of the markets I do business in are starting to report that maybe things are beginning to slow. I think this is a great thing as nothing would be better than a market that doesnt favor a buyer or a seller. A normal market would be perfect for everyone! I guess over the next few months "more will be revealed"!

Rick Costa, FHA/VA/USDA expert (Primary Residential Mortgage Inc. NMLS 3094)

Rick Costa

FHA/VA/USDA expert

Ukiah, CA

More about me…

Primary Residential Mortgage Inc. NMLS 3094

Address: 704 East Perkins Street STE E, Ukiah, CA, 95482

Mobile: (707) 529-3374

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