As I've predicted rates have stayed low, if not gotten lower. If you own a home and aren't thinking about refinancing then you're not doing the correct thing. At least check in and see what's possible.
I certainly can't guarantee that everyone will qualify. And with these new HVCC rules, who knows what value you are going to get? But if we don't explore the options, like run the credit and possible pay for an appraisal, then you'll never know.
If we think that there is a possibility to refi, I'm looking at rates in the 4's for a 30 year fix and have even seen some rates in the 3's, YES 3's on a 5/1 ARM even interest only!!!
Let me try to help you. I usually don't do adds here but when I'm seeing the trends like I have in the past, I don't want people to miss the boat because this truly could be the last chance. As always we can be reached at 818 264-0999.
Please be patient as well. Now the lenders are starting to get backed up again and so is everyone else. From appraisers to title and escrow and even us brokers. Each deal is now twice as hard and there is a lot of up front work that needs to be done so we know that we can get each loan done. The good part is eventually the loans are funding. It might take longer that the good old days but the loans are still funding. So call now and see what can be done.
Friday, October 2, 2009
Housing thoughts
Sorry I've been lazy with the blog.
I think we're getting closer to the bottom of the market. There may still be another 10% to drop in the average area. I feel that in the higher end homes you'll start to see a much larger drop. The financial crisis we're all experiencing is starting to hit the homes that are 900k and above. The homes that I think that will be hit the hardest are the ones that are 900k - 2 million. The reason being that the buyers of those homes that have a standard of 20 - 25% are still going to have trouble finding financing. Also, those seem to be the homes that the bank was less willing to foreclose on because, let's face it, there are not a lot of people that have 180 - 400k to put down on a house. I could go on, but I don't want to bore you with facts and numbers.
The people with homes in the 4 million and over, they're always going to be and have been a different breed. Unless they are hit with job losses, those homes won't need to sell and you'll see people sitting on those. But if you an average home buyer, now is a great time to be looking.
I know that the banks are sitting on a ton of inventory. Adding to that 60% of people who manage to get a rate mod are still going into foreclosure, so you've got that group that will start hitting soon. I'm seeing places that where going for 600k, going down as low at 350 - 400. Sure they where way over inflated but you can get good deals. And with rates this low it makes a lot of sense. Just be patient. At this very moment the inventory of houses is not very good. Anything that is worth looking at probably already has multiple offers on it. The key is to have the financing ready and save as much for a down payment as possible. If you're going against multiple offers and you can put a good down payment together, if it's a short sale or foreclosure where the banks are making the decisions, they want to go with the quickest and least hassle buyers.
As always, if you have any questions, give us a call. I'm happy to discuss all options with you.
818 264-0999
I think we're getting closer to the bottom of the market. There may still be another 10% to drop in the average area. I feel that in the higher end homes you'll start to see a much larger drop. The financial crisis we're all experiencing is starting to hit the homes that are 900k and above. The homes that I think that will be hit the hardest are the ones that are 900k - 2 million. The reason being that the buyers of those homes that have a standard of 20 - 25% are still going to have trouble finding financing. Also, those seem to be the homes that the bank was less willing to foreclose on because, let's face it, there are not a lot of people that have 180 - 400k to put down on a house. I could go on, but I don't want to bore you with facts and numbers.
The people with homes in the 4 million and over, they're always going to be and have been a different breed. Unless they are hit with job losses, those homes won't need to sell and you'll see people sitting on those. But if you an average home buyer, now is a great time to be looking.
I know that the banks are sitting on a ton of inventory. Adding to that 60% of people who manage to get a rate mod are still going into foreclosure, so you've got that group that will start hitting soon. I'm seeing places that where going for 600k, going down as low at 350 - 400. Sure they where way over inflated but you can get good deals. And with rates this low it makes a lot of sense. Just be patient. At this very moment the inventory of houses is not very good. Anything that is worth looking at probably already has multiple offers on it. The key is to have the financing ready and save as much for a down payment as possible. If you're going against multiple offers and you can put a good down payment together, if it's a short sale or foreclosure where the banks are making the decisions, they want to go with the quickest and least hassle buyers.
As always, if you have any questions, give us a call. I'm happy to discuss all options with you.
818 264-0999
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