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Recent Realty Conference Inspires Optimism in Tampa

Thu, 15 Oct 2009 10:18:25 -0500

People who are interested in investing in real estate in the Tampa Bay, Florida market are cautious. You can't really blame them. The area has been hit hard by the problems that we have experienced in the mortgage and real estate industries in the past years. The market in many parts of the nation remains shaky so investors and first-time homebuyers alike are approaching real estate purchases with a bit of wariness. However, a recent Florida realty conference suggests that Tampa Bay and other Florida markets may be the best places possible for investing in real estate today.

The main reason that the home market in this area is ideal right now is precisely because Tampa was one of the first areas to be hit with problems when the real estate market crashed a few years back. The areas that suffered the most early on are the areas that are best for buying in right now. That's because they've already seen the worst of the mortgage crisis and are now well on their way to market recovery. Markets like Tampa aren't going to nosedive again because they have already hit bottom. Instead, home values are only going to improve and that makes this a perfect market to get into right now.

Industry real estate markets are filled with enthusiasm from people who understand what a great market the Florida real estate market is right now. Home sales have increased 20 - 30% in some areas. Despite the increase in home sales, the median prices of homes are staying low right now. What does that mean for people who are interested in buying real estate in Tampa? It means that you shouldn't put off buying any longer. With home sales on the rise, prices of homes are also bound to increase. That hasn't happened yet which means we're currently in the midst of the ideal buying time - a good market with low home prices. If you buy a Tampa home now, you'll get it at a good price and can be almost guaranteed that its value will rise over the next few years.

Source: http://www.heraldtribune.com/article/20090926/ARTICLE/909261061/-1/NEWSSITEMAP

It�s a Great Time to Buy a San Diego Beach Home

Thu, 15 Oct 2009 10:16:08 -0500

If you were going to buy a home in San Diego in what area of the city would you like to live? Most people love the idea of buying a home right on the beach. That's the California real estate dream. It's also a dream that most people don't ever bother trying to realize because the cost of ocean-side real estate in California has always been prohibitively high. Beach-lovers in the San Diego area should perk up their ears right now though because it turns out that it's a great time to buy a beach home in this part of California.

When the real estate market's problems hit the San Diego area, they hit in two main areas. The downtown market suffered first because the people living there were already struggling to pay for their perfectly-located condos. They experienced mortgage problems and faced foreclosure. Then the people living in the suburbs of San Diego were struck with similar problems. As the San Diego real estate market has improved, the homes that people have been purchasing have been the homes in these areas which foreclosed and are suddenly now affordable again.

Beach homes didn't suffer the same fate that the other homes in San Diego did because most beachside property owners either own their homes outright or have the financial means to avoid mortgage issues. However things have changed. The people who own homes on the beaches of San Diego are currently finding themselves in a tight spot. Many of them don't actually live in these homes but instead rent them out to beach-loving vacationers. With travel rates down in the area, these people are having trouble maintaining their home payments. What this means is that beachside homes in San Diego are foreclosing or selling at below-normal prices. For the beach lover who lives in the area, this means that it's the perfect time to buy that dream home that's located right on the ocean of this great city!

What you should know is that the prices of homes in this part of San Diego aren't exactly rock bottom. The market here on the beach hasn't bottomed out to quite the degree that the downtown and suburb regions did. Nevertheless, there's a financial problem happening for home owners in this area and home values are lower than ever before. Beachside properties are likely to be the first to rise in value as the market improves so this is great for an investment property. Plus buying a home here means that you get to live the dream of having a home on the beaches of California. It's worth looking into because a deal like this doesn't come along often during our lifetimes.

Reverse Mortgages: Fixed Rate vs. Adjustable Rate

Thu, 15 Oct 2009 10:13:08 -0500

Reverse mortgages are ideal mortgages for people who are interested in leveraging their home equity in order to access much-needed cash. In the past, reverse mortgages were only offered as adjustable rate loans. This has recently changed as HUD has now altered the rules of reverse mortgages to allow lenders to also offer fixed rate reverse mortgages. When choosing a reverse mortgage, you should consider whether a fixed rate mortgage or an adjustable rate mortgage makes more sense to you.

The main benefit of the fixed rate mortgage is that you're going to always know what the rate of your reverse mortgage loan is going to be. This makes it easy for you to plan into the future in terms of your finances. People who get reverse mortgages are elderly people who are trying to make sure that they have their finances in order as they age. A fixed rate mortgage makes that easy because the terms and rates are set in advance. They aren't going to change. You can plan how you'll be using your reverse mortgage loan for the rest of your life starting from the day that you get it.

The adjustable rate mortgage doesn't allow you to do this type of advance planning to nearly the same degree. Like with any other adjustable rate loan, the adjustable rate reverse mortgage loan is going to depend upon the market. It's going to change with time (although it may not change significantly). You'll have to take these potential financial changes into consideration as you plan for your financial future which can be a bit more difficult than planning with a fixed rate reverse mortgage would be.

On the other hand, the adjustable rate reverse mortgage might end up costing you less in the long run. If the rate is low and stays fairly low over time then it's going to save you money compared to a higher-interest fixed rate loan. HUD has established rules which make it impossible for your adjustable rate reverse mortgage to ever rise over 10% so you don't run too many risks of having to pay a high rate down the line. Of course, if you can lock in low-interest fixed rate reverse mortgage loan right now then that might end up being the option that costs you less money in the long run.

There are pros and cons to these different types of reverse mortgages just like there would be when choosing between a fixed rate and an adjustable rate on any other home loan. The type of rate that is best for you really depends on your personal financial situation, how much planning you want to do for the future and whether you plan to access the reverse mortgage loan as a lump sum payment or to use it as a line of credit. Discuss your options with a reverse mortgage specialist to make the right decision on rates.

3 Factors Suggest Los Angeles Real Estate Has Recovered

Thu, 15 Oct 2009 10:10:38 -0500

The real estate market in California has recovered. This is proven by the statistics that we see emerging from the Los Angeles real estate market. Although there continue to be some gloom-and-doom people out there who are concerned that the past problems with the real estate market aren't yet over, the facts suggest that we're on our way to a full recovery. There are three factors exhibited in the Los Angeles real estate market which lead us to this conclusion: improved home sales, increased median home sale prices and a decreased number of unsold homes in the area.

Improved home sales are the most obvious sign that the Los Angeles real estate market has recovered. Statistics indicate that home sales in the state of California have increased month after month for the past fourteen months. This is due in no small part to continually increasing home sales in the Los Angeles area. If more homes are selling each month for over a year straight then doesn't that signify that the real estate market has recovered?

Of equal importance is the fact that the median price of the homes that are being sold is also on the rise. Buyers aren't just looking at buying cheap foreclosed homes anymore. They want to buy the good homes that are of high value. They want to buy the kind of Los Angeles homes that they really want to live in. Statistics show that median home prices have been rising steadily for the past six months which is another great sign that the Los Angeles real estate market is on the upswing.

Finally, we can look at yet one more statistic to prove that the real estate market here has improved. That statistic is the number of unsold homes on the market. When the Los Angeles real estate market was bad there were a lot of homes listed for sale that just were not selling. The rate of failure-to-sell is nearly half what it was last year at this same time for this particular region. These three things clearly indicate that it's a smart time to buy real estate in Los Angeles because this market has improved considerably and is only going to get better.

Source: http://www.benzinga.com/17581/ca-real-estate-recovery-home-sales-increase-for-14th-straight-month-median-prices-for-6th-mont

Purchasing a Foreclosed Home - Tips of the Trade

Thu, 20 Aug 2009 09:21:18 -0500

You've seen the commercials on TV, heard the advertisements on the radio, and seen signs on the road about purchasing a foreclosed home. Foreclosures can offer great deals on real estate and provide easy access to smart investments. It seems as though there are currently plenty of foreclosures to choose from; the trick is purchasing a foreclosed home that is a good deal and a wise investment.

In an ideal world, you could buy a foreclosure for a low price, and the previous owner could cut their losses and walk away. Purchasing a foreclosed home, however, is usually not that cut and dry. Read below to learn foreclosure tips that will help you decide if buying a foreclosure is right for you, and if so, how best to proceed.

Research the Location
One of the first and most important things you can do when considering buying a foreclosure is to research and inspect the location. While exploring the home's neighborhood, ask yourself such questions as:

Is the neighborhood safe?
Is the home in a good, convenient location (e.g. near shopping centers, gyms, major highways)?
Are the surrounding homes well-kept?
Are there several foreclosures in the neighborhood?
What is the resale potential of the home?
Does the home need a lot of maintenance, or is it in pretty good shape?

Inspect the Property with an Expert
Unfortunately, many foreclosures are not in the best of shape; some get vandalized after the home is vacated, or by the former owner. To ensure that the foreclosure is a good investment, you must make certain that it is not a money pit needing lots of repairs and extra work. Thoroughly inspect the home with an expert, so that you can assess potential repairs before buying the foreclosure.

Purchase Mortgage Pre-Approval
As with any home mortgage, it's important to start the process early and research and compare possible lenders. Speak with as many reputable mortgage lenders as you can, and ask if they have different requirements for purchasing a foreclosed home. Once you find a qualified lender, it's time to get pre-approved for a purchase mortgage. Be sure to prepare a personal budget that accounts for not only the monthly mortgage payment, but also insurance, property taxes, and possible back taxes.

Avoid Public Auctions
Buying a foreclosure at an auction limits you in many ways. First, you don't get a chance to inspect the home. Damages also go unrepaired, and often, you must buy the foreclosed home with cash. If the foreclosure does not sell at the auction, it will be turned over to the bank and put it on the market. Avoiding the auction gives you the time you need to inspect the location and property, and to get pre-qualified for a purchase mortgage, if necessary.

Does It Mean Anything that California Median Home Prices Are Rising

Thu, 20 Aug 2009 09:16:42 -0500

Homes are finally being sold throughout Southern California again after a long battle with foreclosure problems. The total number of homes sold in the area has risen to its highest level in over three years. Additionally, the median home price has risen considerably just this year. However, this doesn't necessarily mean that people are in the clear as far as foreclosures go.

It is true that times are changing for the better. More homes are being sold in both San Diego and Los Angeles. Additionally, the median home price for sales has increased over 6% from one month to the next this year. However, this doesn't necessarily mean that the market is entirely improved. That's because the reason that home sales are on the rise is because the cost to buy more expensive homes has dropped considerably. This makes these homes both available and appealing to a wider buying market in Southern California.

The good news is that foreclosure rates are also on the decline. Foreclosure properties in the Los Angeles area are now accounting for less than half of home sales which is a drop compared to how things have been going. What we're seeing is a shift in the types of homes that people are purchasing in this part of the state. People who can afford to get a decent mortgage are able to buy a lot of home for their money since the values of pricier homes have declined.

So what does all of this mean to the California real estate market? It essentially means that home sales in the state are improving but that we're not in the clear yet as far as a better market goes. As more and more homes are sold, the median home price may continue to rise or to fluctuate. The real numbers that we want to look at are the number of homes sold and the number of those that are foreclosure homes. As we see more homes sold with fewer of them being foreclosure properties, we can feel more secure in the belief that the market is truly improving.

Sources: http://blogs.wsj.com/developments/2009/07/16/dont-put-too-much-stock-yet-in-rising-median-home-prices/, http://www.cutimes.com/News/2009/7/Pages/Economic-Indicators-Can-Help-Gauge-US-Central-Losses.aspx

How to Choose a Trustworthy California Mortgage Company

Fri, 07 Aug 2009 21:37:24 -0500

If you are looking for a reliable California home mortgage lender, there are many important qualities that you should know. You probably see lots of ads in the newspaper about California companies offering to help your mortgage needs. Differentiating a reputable lender from a bad lender is the most important step to take when selecting your California mortgage company. Below are a few helpful tips that will help you choose a top California home mortgage lender.

Consider More Than Just Rates
Don't just pick the California mortgage company with the best interest rate. Rates are important, but you also need to choose a mortgage company with excellent customer service. Failing to choose a California mortgage lender with top-quality customer service could lengthen the application process, or result in an unapproved loan or unnecessary fees. To make the home buying experience as simple as possible, analyze California mortgage lenders with both low rates and good customer service.

Request Referrals
Perhaps the fastest way to find a reputable California mortgage lender is to ask your family and friends which lender they used. You may also want to ask your real estate agent, since he or she has experience in the field. Lastly, look up the ratings and reviews of your top California lender choices on the Better Business Bureau's website.

Ask For an Experienced California Loan Originator
Within a large or small California mortgage company, there are individual loan originators. This is the person who draws up your mortgage. While it is important to choose a trustworthy lender, you also want to find a dependable loan originator within the company.

Your loan originator should have at least five years of experience in the mortgage industry. Make sure he or she fully answers any questions you have, and that they are trustworthy. Most importantly, make sure they have your best interests in mind. The top California loan originators listen to your needs and provide their professional opinion.

Your loan originator should discuss the various California mortgage programs available. Once you've chosen the right mortgage for your lifestyle, your loan originator should reduce any fees that they can and lock in the lowest interest rate possible.

Is it a Good Time to Refinance My Mortgage?

Fri, 31 Jul 2009 14:43:20 -0500

In the past year, mortgage refinance rates have been incredibly low. This allows many homeowners to refinance their mortgage to a lower rate, thereby lowering their monthly payment. In the past month, however, mortgage rates have quickly risen almost a full percentage point. Now, many potential refinancers wonder, "Can I still get a low mortgage refinance rate?"

An Upward Trend
Back in April, rates for 30-year fixed mortgages were at an all time low (4.61%). As of early June, rates were back to 5.6%. Many borrowers question if this upward trend will continue, or if the temporary surge will soon calm down and mortgage rates will return to below (the optimal) 5%.

Too Much Uncertainty?
The current uncertainty surrounding mortgage rates begs the question, "Is now the time to refinance my mortgage?" Depending on the type of mortgage you have, most financial advisors would say "yes."

Though rates have steadily risen in the past few weeks, they are still relatively low. If your current mortgage rate is over 6.5% (and for many of us, that’s the case), now is a good time to consider mortgage refinancing.

Who Should Refinance?
There are certain times when it’s right to refinance your mortgage. Most refinancing does, after all, cost money (e.g. repayment of closing costs). Here are two scenarios where mortgage refinancing is currently a good option.

Large Mortgage Owners - According to experts in the field, current homeowners with large mortgages (i.e. over $250,000) should consider refinancing. This is because large mortgage holders may only need to cut their rate by half of a point to see a significant difference in their monthly payment. If your mortgage is less than $250,000, you might need to see a full point cut to enjoy significant savings.

Adjustable Rate Mortgages (ARM) & Short-Term Loans
Adjustable Rate Mortgages are mortgages that have a rate which changes (or "adjusts") over the life of the loan. If rates go up, your payments increase; if rates go down, payments do too. ARMs offer more risk for the borrower, and lenders often entice individuals to consider this type of mortgage by offering a low initial rate. Adjustable Rate Mortgages and short-term loans are great for homeowners who do not plan to stay in their home for more than 7 to 10 years. Customers seeking ARM or short-term loans can still take advantage of the current low mortgage refinance rates without the long-term commitment and worry of what the future holds for interest rates.

In the end, it’s up to the homeowner to determine his or her financial goals and then assess whether mortgage refinancing is right for them. To help you make a decision, simply follow rate trends, contact a reputable mortgage lender, understand various types of mortgages and terms (including the pros and cons of each), and determine how long you plan to stay in your home.