1. MIP goes up .75 upfront on April 9. Get under contract and get a file number before then to save upfront money and annual, which goes up .1. Obama to use this money for Medicaid. Go figure.
2. Texas has a new bond program to help buyers pay for closing up to $10,000 but they only put $600,000 in to the program, which is 60 loans. Have you seen the size of TX. This won't last a week.
Won't help the housing market very well.'
3. Amarillo, TX, has a much better program. Pays 75% of closing and downpayment, never to be repaid if you stay in house 5 years. Designed to help first time homebuyers with lower credit scores. Of course, you still have to qualify under FHA or Conventional standards.
4. If you have collections on your credit report, you have to be paying on them for 3 months or get them paid off before you can qualify for a loan now.
5. Happy State Bank has 2 new loans programs that help buyers. If you are having trouble getting a mortgage loan, check them out.
My personal news: wrote a contract tonight. Keeping fingers crossed its accepted tomorrow.
More news: New listing 5304 Albert in Amarillo, home + mother-in-law apt. Both updated and cute. Outstanding kitchens. $149,900.
4414 Alicia, 2/2/2 townhome in Puckett, $102,900. OWC. New windows, great woodwork, huge bathroom upstairs with both tub and shower and utility. 2 closets in each bedroom, plus 3 other closets. Bank of floor to ceiling cabinets in kitchen.
Short sale in Adrian, TX, Over an acre of land in the city limits, 3/1 with pole barn, mud room and utility, $39,000.
Wednesday, March 21, 2012
Wednesday, February 22, 2012
WOMEN DATE MEN WHO OWN A HOUSE!!
When it comes to dating, homeownership can be the ultimate aphrodisiac.In a survey of 1,000 single people, more than a third of women and 18% of men said they would much rather date a homeowner than a renter.
Only 2% of women said they preferred to date a man who rents, while only 3% of men said they would choose a woman who rents over one that owns her home, according to the survey, which was conducted by Harris Interactive for real estate site Trulia.
Both sexes also clearly prefer it when there's no roommate in the picture; 62% of survey respondents, men and women, prefer to date singles who live alone.
Tuesday, February 14, 2012
?? SHOULD INVESTORS GET LOANS TO IMPROVE PROPERTIES??
Just read an interesting article about 203K FHA loans and investors. Investors at present are not allowed to get these rehabilitation loans to improve properties and make them more valuable. But should they be allowed to? Because in the past there were abuses, now no investor can get such a loan; but there are so many technological advances which would make it easier to monitor the system, maybe this is the answer to the glut of foreclosures sitting unsaleable on the market.
Question 2: Is selling these foreclosures in mass as rentals good. Sounds good to me, but this article gives some thoughts there were new to me. Like who wants to live in these type homes without modifications? If Investors can't get the $$ for the remodel from an FHA 203K loan, will they just buy them and rent them as slumlords.
Read the article and come back and leave your opinion. http://rismedia.com/2012-02-13/opinion-fha-should-reinstate-203k-loans-for-investors/
Question 2: Is selling these foreclosures in mass as rentals good. Sounds good to me, but this article gives some thoughts there were new to me. Like who wants to live in these type homes without modifications? If Investors can't get the $$ for the remodel from an FHA 203K loan, will they just buy them and rent them as slumlords.
Read the article and come back and leave your opinion. http://rismedia.com/2012-02-13/opinion-fha-should-reinstate-203k-loans-for-investors/
Wednesday, February 8, 2012
Why banks are scared Wells Fargo will change.
If you don't know what a correspondent lender is, its one that buys loans from other banks. Here's a good article I found about BOA leaving that area and Wells Fargo doing 30% of all correspondent lending. Read and get better educated about what goes on behind the scenes in mortgage lending.
Smaller Players Easing Squeeze in Third-Party
Of course, there is nothing out there to suggest that Wells has any intention of leaving the correspondent channel or scaling back its presence in mortgage banking—though its wholesale production has been slipping for several quarters.
Recently, Bank of America (the second-largest buyer of closed mortgages) exited correspondent lending, which on the surface appears to be a major blow. But believe or not, there appear to be plenty of midsized lenders out there, looking to enter both the correspondent and wholesale channels, which is good news for the industry.
But the problem with these new entrants is that they don't have any “scale,” at least not right now.
Case in point is Banc of Manhattan Capital in Woodland Hills, Calif. In November the bank-owned company entered the correspondent channel, doing little business its first month, but in December its volume jumped to $50 million.
“We want to achieve scale,” said BMC EVP Dan Baruch, an alumnus of both Bank of America, and Countrywide Financial Corp.
Baruch's chief duty at the company is overseeing warehouse lending, a business he helped launch at CFC last decade. Baruch admits that his firm's warehouse volume is small but hopes that it will change for the better over time.
(BMC is a national lender in both warehouse and correspondent.)
Meanwhile, refinancings remain strong, accounting for about 70% of production. In a hot refi environment third-party lending (brokers/correspondents) tends to do better and figures collected by National Mortgage News bear that out.
In 3Q retail lending accounted for 52% of production nationwide compared to 8% for wholesale, and 40% for correspondent. The retail market share has been slipping steadily since the first quarter of 2011 when the channel registered a multiyear high of 56%.
It's long been said that wholesale and correspondent lending are cheaper than retail when it comes to counting costs—but during the housing/mortgage boom third-party lending produced lower-quality loans (or so it's been argued).
Unlike commercial bankers, mortgage bankers tend to be more entrepreneurial.
When a large player leaves a sector (such as correspondent or wholesale) almost immediately some company somewhere seizes on the sudden opportunity to pickup new business.
Last week's news that CitiMortgage was exiting the wholesale channel was received poorly in some sectors of the industry, until it was pointed out (by this newspaper) that table funding accounts for just 9% of Citi's overall residential production.
Will Citi be missed? Not according to some brokers I spoke with. “To tell you the truth their rates were nothing special,” said one New Jersey broker.
Who then might fill Citi's shoes? Maybe a firm like Cole Taylor Mortgage in Chicago. Two years ago Willie Newman, a former top executive at InterFirst Mortgage, joined the bank with the stated goal of growing its presence in residential finance.
A wholesale and retail lender, Cole Taylor funded $1.1 billion in 2011, more than doubling the bank's volume. In a few weeks it will receive its 33rd state lending license. That's not exactly in the same league as Citi, but it's a darn good start.
Tuesday, January 17, 2012
Fannie's Mae's Predictions for 2012
Copying this great article about Fannie Mae's Predictions. Hocus, pocus. Can they really see the future. Did they predict 2008? Ghastly!! Read and enjoy.
Friday, January 13th, 2012, 2:17 pm
The housing sector will likely take incremental steps forward in 2012, though total originations will fall on fewer refinances, according to economists at Fannie Mae.
The second half of the year should outpace the first six months in terms of growth, though fiscal policy and political uncertainty in Washington will likely drive consumer and business activity, the mortgage giant said.
Chief Economist Doug Duncan said positive consumer activity and challenges in housing and the global economy will equate to moderate growth for the year.
"We're entering 2012 with decent momentum, especially on the employment side, which is fostering positive household and consumer behavior," Duncan said in a release. "Unfortunately, we expect this momentum to slow as we move through the first half of the year."
The report released Friday forecast total home sales to increase 3.5% to about 4.74 million in 2012 from 2011 with another 5% gain in 2013 to nearly 5 million. New home sales could jump 10.4% for 2012.
The Federal Housing Finance Agency home sales price index, excluding refinances, could dip 1.1% for 2012 from a year before, according to the forecast. Economists predicted the 2011 index would finish 4.6% lower than 2010.
Mortgage originations as dollar volume could see a decline as well in 2012, largely on a steep drop in refinances. The Fannie report said total originations will fall to $1.01 trillion in 2012 from a predicted final 2011 tally of $1.36 trillion. Economists expected refinancing to plummet to $540 billion from $894 billion.
Purchase mortgages, however, will rise to $471 billion in 2012 from a estimated 2011 total of $464, according to the report.
Total single-family outstanding mortgage debt will likely drop 1.3% to $10.14 trillion in 2012.
For the U.S. economy as a whole, Fannie researchers predicted real GDP would increase 3.3% in the fourth quarter to finish the year at 1.7% growth. Economists forecast 2.3% GDP growth for 2012 and 2013.
Write to Andrew Scoggin.
Here in Amarillo it does seem we are on an UPSWING and there do seem to be more buyers out there. However, the old 645 credit score is still tied around buyer's necks. If credit were loosened somewhat, I feel personally that we'd see more people out buying. After reading today that home ownership is important to people, even if they are underwater, why is renting more in vogue than ever....because the credit has dried up for more people due to high credit scores.
I see more investors willing to finance now, so maybe that will help some people get into homes. After all if you can finance a home for 10% instead of leaving it in c.d.s making .75% why not be a lender instead of a borrower be.
Thursday, December 29, 2011
10 Tips for Saving Energy Costs
Found this great article. Love all but the last one. I hate dishwashers. In Amarillo's water the dishes get white speckled. I'd rather use the sink and have crystal clear dishes. But overall, learned alot. I knew I hated those refrigerator ice makers. The ice tastes nasty in Amarillo when made in the fridge. Give me Toot n Totem's ice any day.
Refrigerator/freezer
Energy-efficiency experts tell us to focus our efforts on the biggest energy hogs in the house, and that definitely includes the fridge. Because it cycles on and off all day, every day, the refrigerator consumes more electricity than nearly every appliance in the home save for the HVAC systems. The average refrigerator costs about $90 per year to operate, according to the U.S. Department of Energy. The good news is that a few simple adjustments can trim roughly $38 to $45 off those utility bills.
1. Adjust the thermostat. By setting the thermostat colder than it needs to be, you might increase your fridge's energy consumption by as much as 25% on average. Adjust the refrigerator so that it stays in the 37-40 degrees F range. For the freezer, shoot for between 0-5 degrees F. You could save up to $22 per year. If your model doesn't display the current temps, invest in two appliance thermometers (one for the fridge, one for the freezer). They cost roughly $3-$20 apiece at online retailers.
2. Clean the coils. As dust accumulates on the condenser coils on the rear or bottom of the fridge, it restricts cool-air flow and forces the unit to work harder and longer than necessary. Every six months, vacuum away the dust that accumulates on the mechanism. Also, check to see that there is at least a 3-inch clearance at the rear of the fridge for proper ventilation. This routine maintenance can trim up to 5% off the unit's operating cost, says energy savings expert Michael Bluejay, saving you about $4.50 a year.
3. Use an ice tray. Automatic ice makers are a nice convenience, to be sure, but it turns out the mechanisms are energy hogs. An automatic ice maker can increase a refrigerator's energy consumption by 14% to 20%, according to Energy Star. By switching off the ice maker and using trays, you can save about $12 to $18 off your annual electricity bill. Most units require little more than a lift of the sensor arm to switch them off. To reclaim the space remove the entire unit, a simple DIY job on many models.
4. Unplug the "beer fridge." Many homes have an extra fridge that runs year round even though it's used sparingly. Worse, these fridges tend to be older, more inefficient models. By consolidating the contents to the main fridge and unplugging the additional unit, you eliminate the entire operating cost of a fridge. The second-best solution is to make sure the extra fridge remains three-quarters full at all times. The mass helps maintain steady internal temps and lets the fridge recover more quickly after the door is opened and closed, according to the California Energy Commission.
Ovens and ranges
"Green" cooking all comes down to proper time and space management. By using gas and electric stoves more effectively, you can painlessly save a few dollars a year.
5. Cut the power early. As anybody who's ever bumped a burner on an electric stove can attest, those heating elements stay hot long after they've been switched off. Put that residual heat to work by shutting off the burner several minutes before the end of the cook time. The same technique can be applied to the oven. The savings can add up to a couple bucks every month.
6. Match the burner to pan. When a small pan is placed on a big burner you can practically see the money disappearing into thin air. By matching the burner to the pan, electricity won't be squandered heating the kitchen rather than the food. The reverse is true, too. A small burner will take considerably longer to heat a large pan than would an appropriately sized burner. For gas stoves, don't let the flames lick the sides of the pot. Follow these tips and watch the utility bills shrink by a few dollars a month.
7. Do away with preheating. You can save about $2 a month by not preheating your oven (20 cents per hour to operate electric oven; eliminate 20 30-minute preheats a month). Many cooks agree that the practice is wholly unnecessary for all but a few recipes, namely baking breads and cakes. This approach may add a few minutes to the overall cooking time, but it eliminates all that wait time on the front end.
Dishwasher
As with washing machines, most of a dishwasher's energy needs go to heating the water. Still, says Lane Burt, an energy policy analyst with The Natural Resources Defense Council, a 10-year-old dishwasher can be made nearly as efficient as a newer model simply by knowing when and how to run it. Follow a few simple tips, and you can reduce your annual utility costs by roughly $35-$54.
8. Manage the load. Most dishwashers use the same amount of water and energy whether they're run full or half-full. You can cut your operating costs by one-third or one-half by running the machine only when it's full. It costs about $54 to run a pre-2000 model dishwasher per year, based on government data. Proper load management can save up to $27 each year.
9. Activate energy-saving features. A dishwasher's heated dry cycle can add 15% to 50% to the appliance's operating cost. Most machines allow the feature to be switched off (or not turned on), which can save $8-$27 per year, assuming an operating cost of $54 annually. If your dishwasher doesn't have that flexibility, simply turn the appliance off after the final rinse and open the door.
10. Use the machine. Many homeowners believe they can save water and energy by hand washing dishes. The truth is that a dishwasher requires less than one-third the water it would take to do those same dishes in the sink. By running the machine (when full), you can cut down the operating time of the hot water heater, your home's largest energy hog. Not only will you save a buck per month, you won't have to do the dishes.
10 Tips for Saving Energy in the Kitchen
Published: August 28, 2009
Maintaining your large kitchen appliances is part of a smart home energy efficiency plan.
Refrigerator/freezer
Energy-efficiency experts tell us to focus our efforts on the biggest energy hogs in the house, and that definitely includes the fridge. Because it cycles on and off all day, every day, the refrigerator consumes more electricity than nearly every appliance in the home save for the HVAC systems. The average refrigerator costs about $90 per year to operate, according to the U.S. Department of Energy. The good news is that a few simple adjustments can trim roughly $38 to $45 off those utility bills.
1. Adjust the thermostat. By setting the thermostat colder than it needs to be, you might increase your fridge's energy consumption by as much as 25% on average. Adjust the refrigerator so that it stays in the 37-40 degrees F range. For the freezer, shoot for between 0-5 degrees F. You could save up to $22 per year. If your model doesn't display the current temps, invest in two appliance thermometers (one for the fridge, one for the freezer). They cost roughly $3-$20 apiece at online retailers.
2. Clean the coils. As dust accumulates on the condenser coils on the rear or bottom of the fridge, it restricts cool-air flow and forces the unit to work harder and longer than necessary. Every six months, vacuum away the dust that accumulates on the mechanism. Also, check to see that there is at least a 3-inch clearance at the rear of the fridge for proper ventilation. This routine maintenance can trim up to 5% off the unit's operating cost, says energy savings expert Michael Bluejay, saving you about $4.50 a year.
3. Use an ice tray. Automatic ice makers are a nice convenience, to be sure, but it turns out the mechanisms are energy hogs. An automatic ice maker can increase a refrigerator's energy consumption by 14% to 20%, according to Energy Star. By switching off the ice maker and using trays, you can save about $12 to $18 off your annual electricity bill. Most units require little more than a lift of the sensor arm to switch them off. To reclaim the space remove the entire unit, a simple DIY job on many models.
4. Unplug the "beer fridge." Many homes have an extra fridge that runs year round even though it's used sparingly. Worse, these fridges tend to be older, more inefficient models. By consolidating the contents to the main fridge and unplugging the additional unit, you eliminate the entire operating cost of a fridge. The second-best solution is to make sure the extra fridge remains three-quarters full at all times. The mass helps maintain steady internal temps and lets the fridge recover more quickly after the door is opened and closed, according to the California Energy Commission.
Ovens and ranges
"Green" cooking all comes down to proper time and space management. By using gas and electric stoves more effectively, you can painlessly save a few dollars a year.
5. Cut the power early. As anybody who's ever bumped a burner on an electric stove can attest, those heating elements stay hot long after they've been switched off. Put that residual heat to work by shutting off the burner several minutes before the end of the cook time. The same technique can be applied to the oven. The savings can add up to a couple bucks every month.
6. Match the burner to pan. When a small pan is placed on a big burner you can practically see the money disappearing into thin air. By matching the burner to the pan, electricity won't be squandered heating the kitchen rather than the food. The reverse is true, too. A small burner will take considerably longer to heat a large pan than would an appropriately sized burner. For gas stoves, don't let the flames lick the sides of the pot. Follow these tips and watch the utility bills shrink by a few dollars a month.
7. Do away with preheating. You can save about $2 a month by not preheating your oven (20 cents per hour to operate electric oven; eliminate 20 30-minute preheats a month). Many cooks agree that the practice is wholly unnecessary for all but a few recipes, namely baking breads and cakes. This approach may add a few minutes to the overall cooking time, but it eliminates all that wait time on the front end.
Dishwasher
As with washing machines, most of a dishwasher's energy needs go to heating the water. Still, says Lane Burt, an energy policy analyst with The Natural Resources Defense Council, a 10-year-old dishwasher can be made nearly as efficient as a newer model simply by knowing when and how to run it. Follow a few simple tips, and you can reduce your annual utility costs by roughly $35-$54.
8. Manage the load. Most dishwashers use the same amount of water and energy whether they're run full or half-full. You can cut your operating costs by one-third or one-half by running the machine only when it's full. It costs about $54 to run a pre-2000 model dishwasher per year, based on government data. Proper load management can save up to $27 each year.
9. Activate energy-saving features. A dishwasher's heated dry cycle can add 15% to 50% to the appliance's operating cost. Most machines allow the feature to be switched off (or not turned on), which can save $8-$27 per year, assuming an operating cost of $54 annually. If your dishwasher doesn't have that flexibility, simply turn the appliance off after the final rinse and open the door.
10. Use the machine. Many homeowners believe they can save water and energy by hand washing dishes. The truth is that a dishwasher requires less than one-third the water it would take to do those same dishes in the sink. By running the machine (when full), you can cut down the operating time of the hot water heater, your home's largest energy hog. Not only will you save a buck per month, you won't have to do the dishes.
Wednesday, December 21, 2011
Preparing Your House to Sell - CHEAPLY
Just read a great article by Dian Hymer, a real estate broker with more than 30 years' experience, and a syndicated real estate columnist and author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Startiing Out the Complete Home Buyer's Guide." I'm going to put her thoughts into my own words to the best of my ability.
Because the young people who are tech savvy and enjoy HGTV and expect a home that is perfect or as she said "turnkey", they want a house to move in today and not have to do any work. They are busy and are willing to pay a premium for houses that are in prime condition. However the home seller is also busy, has lived in their home a while and probably it is not in prime condition, possibly needing alot of clean-out and repairs.
Staging can make the difference between a listing selling or not selling, the time it takes to sell, and the final sales price.
Sellers, though, are sometimes financially strapped, and they find it hard to accept that by investing in parparing the home for sale, they might get more money for the house. Fix-up costs can add up quickly. You need to get an agent who can assist you in prioritizing what really needs to be done, and what can wait. Your goal must remain: sell this House in this difficult market.
She tells of a house in Piedmont, California, an affluent city neighboring Oakland, in a very desirable location, which came on the market after years of being lived in with no upgrades. It was vacant, dark and showed poorly. The sellers refused to do any work to make it more marketable. It stayed on the market for months with no one having any interest in it. Finally they pulled it off the market and started updating: 1) pulled up the carpet to reveal wood floors which were then refinished; 2) painters freshened up the walls with lighter colors, (3 a professional stager brought in furniture, artwork, house plants and other accessories. They then put the house back on the market, and it sold right away.
Tip 1: Get rid of personal possessions in your home. Declutter! Almost everyone needs to do this if they've been in their home a few years. In my case, it would be churches, angels and salt and pepper sets.
Tip 2: Consider hiring a packer to help sort, pack, donate and recycle items. Donations might be tax deductible, but get a receipt. Your agent should be able to recommend someone who can help you with this clearing chore.
Tip 3: Put away collections of art, personal photos, etc. I know, it's part of the emotional appeal of your home, but the buyers won't have an emotional connection with your collections; they will see clutter. You are selling square footage, not collectibles.
You want people to see the house and not your personal objects. Whenever we go
on a tour and I stop to look at a painting or a picture on the refrigerator, my boss always says, "Tell them to remove that; it's taking attention away from the house."
Whenever you put a house on the market, don't consider it your home any more, but a piece of merchandise that needs to be shown to its advantage, not to your advantage and likes. That will help you depersonalize the house so you can detach emotionally; and with less personal property, the home will probably look more spacious. Bigger is usually always better.
Tip 4: Spotless is the word of the day. Inviting is second. Bring in new house plants to place in strategic places, such as dark places that need warmth and color, use bromeliads, and in the bathrooms, orchids.
Tip 5: If you feel inadequate, hire a stager for a consultation or a proposal for full or partial staging.
Don't spend an arm and a leg on new tile, new floors, etc., unless you plan to spend a bundle. I did that back 2002. New tile in the kitchen and 3 baths, which the new owners took out the first week they lived there. I hadn't even finished paying for the tiles when they went to the dumpster. Obviously my taste and theirs were different. They removed brick walls in the dining room, custom light fixture, laminate floors, etc., and I was glad I did not have the house repainted or recarpeted, because I would have gone with a different style than they liked and wasted more of my money.
So in essence, clear out, clean up and cheer up- and the price might reflect the attention you have given to these details. It might also speed up the selling schedule.
Because the young people who are tech savvy and enjoy HGTV and expect a home that is perfect or as she said "turnkey", they want a house to move in today and not have to do any work. They are busy and are willing to pay a premium for houses that are in prime condition. However the home seller is also busy, has lived in their home a while and probably it is not in prime condition, possibly needing alot of clean-out and repairs.
Staging can make the difference between a listing selling or not selling, the time it takes to sell, and the final sales price.
Sellers, though, are sometimes financially strapped, and they find it hard to accept that by investing in parparing the home for sale, they might get more money for the house. Fix-up costs can add up quickly. You need to get an agent who can assist you in prioritizing what really needs to be done, and what can wait. Your goal must remain: sell this House in this difficult market.
She tells of a house in Piedmont, California, an affluent city neighboring Oakland, in a very desirable location, which came on the market after years of being lived in with no upgrades. It was vacant, dark and showed poorly. The sellers refused to do any work to make it more marketable. It stayed on the market for months with no one having any interest in it. Finally they pulled it off the market and started updating: 1) pulled up the carpet to reveal wood floors which were then refinished; 2) painters freshened up the walls with lighter colors, (3 a professional stager brought in furniture, artwork, house plants and other accessories. They then put the house back on the market, and it sold right away.
Tip 1: Get rid of personal possessions in your home. Declutter! Almost everyone needs to do this if they've been in their home a few years. In my case, it would be churches, angels and salt and pepper sets.
Tip 2: Consider hiring a packer to help sort, pack, donate and recycle items. Donations might be tax deductible, but get a receipt. Your agent should be able to recommend someone who can help you with this clearing chore.
Tip 3: Put away collections of art, personal photos, etc. I know, it's part of the emotional appeal of your home, but the buyers won't have an emotional connection with your collections; they will see clutter. You are selling square footage, not collectibles.
You want people to see the house and not your personal objects. Whenever we go
on a tour and I stop to look at a painting or a picture on the refrigerator, my boss always says, "Tell them to remove that; it's taking attention away from the house."
Whenever you put a house on the market, don't consider it your home any more, but a piece of merchandise that needs to be shown to its advantage, not to your advantage and likes. That will help you depersonalize the house so you can detach emotionally; and with less personal property, the home will probably look more spacious. Bigger is usually always better.
Tip 4: Spotless is the word of the day. Inviting is second. Bring in new house plants to place in strategic places, such as dark places that need warmth and color, use bromeliads, and in the bathrooms, orchids.
Tip 5: If you feel inadequate, hire a stager for a consultation or a proposal for full or partial staging.
Don't spend an arm and a leg on new tile, new floors, etc., unless you plan to spend a bundle. I did that back 2002. New tile in the kitchen and 3 baths, which the new owners took out the first week they lived there. I hadn't even finished paying for the tiles when they went to the dumpster. Obviously my taste and theirs were different. They removed brick walls in the dining room, custom light fixture, laminate floors, etc., and I was glad I did not have the house repainted or recarpeted, because I would have gone with a different style than they liked and wasted more of my money.
So in essence, clear out, clean up and cheer up- and the price might reflect the attention you have given to these details. It might also speed up the selling schedule.
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