Dissolving Fannie Mae, Freddie Mac may hurt borrowers
Source: The LA Times
What will the proposed elimination of Fannie Mae and Freddie Mac mean for consumers? In the absence of a government guarantee, experts contend that mortgage rates are likely to rise, and the widespread availability of 30-year mortgages would be jeopardized. Economists at Moody’s Analytics estimate the average mortgage borrower would see interest rates increase by one-half to three-quarters of a percentage point. Read the full story
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Should Home Sellers Overprice or Underprice Real-Estate Listings?
Source: The Wall Street Journal
When setting an asking price, there are two major strategic approaches: overpricing when inventory is low to get higher initial offers, or pricing homes below nearby properties to instigate a bidding war in a market with pent-up demand. But what’s the best method? New research on a behavioral trait called “anchoring” sheds some light on the power of price. Read the full story
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Loans from family members could go the extra mile in making a down payment, but financial experts say parental help is most useful when it comes as a gift rather than a loan during the mortgage application process. A family loan may not be viewed favorably by a lender and could lead to disqualification for a mortgage since the loan is considered unsecured debt. Read the full story.
Click HERE to find out what your home is worth in today’s market.
Home shoppers advised to stay patient amid overheated housing market
Source: The LA Times
It’s a seller’s market, so experts are advising home buyers that patience will pay off at a time when the inventory of available homes for sale is low. Experts contend that in six months to a year from now, the inventory of unsold homes should improve markedly, and it should be easier to qualify for financing. Read the full story.
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7 Things That Worry Buyers Most about the Buying/Selling Process
Source: Chicago Agent Magazine
Tight supplies, rising rates and bidding wars have characterized market conditions for many buyers looking to secure the property of their dreams. A new survey conducted by Trulia and Harris Interactive shows that 41 percent of respondents are concerned that mortgage interest rates will rise before they are ready to buy. Finding a suitable home and qualifying for a mortgage were other major concerns. Read the full story
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Homebuyers are facing competition from all-cash buyers on top of rising home prices and low inventory. Such cash buyers include foreign investors and baby boomers with sufficient equity. Tips to compete with these buyers include getting pre-approved, making a competitive bid, considering properties that might be overpriced, and freeing up additional cash. Read the full story
Click Here for the ten things you should NEVER do before buying that next home.
Housing costs among working renter households rose for the third consecutive year due primarily to falling incomes and rising rental housing costs, according to the 2013 Center for Housing Policy’s Housing Landscape report. Nationally, working renters saw their housing costs rise by 6% from 2008 to 2011, while their household incomes fell more than 3%. More than one in four working renter households (26.4%) spent more than half of their income on housing costs in 2011 — an increase of more than three percentage points since 2008. (Center For Housing Policy)
So the question is, as a renter does it make more sense to start planning how you are going to buy a home versus wasting dollars on something with no future value? What do you think?