by Cherie Carter-Scott
1. You will receive a body. You may like it or hate it, but it's yours to keep for the entire period.
2. You will learn lessons. You are enrolled in a full-time informal school called, "life."
3. There are no mistakes, only lessons. Growth is a process of trial, error, and experimentation. The "failed" experiments are as much a part of the process as the experiments that ultimately "work."
4. Lessons are repeated until they are learned. A lesson will be presented to you in various forms until you have learned it. When you have learned it, you can go on to the next lesson.
5. Learning lessons does not end. There's no part of life that doesn't contain its lessons. If you're alive, that means there are still lessons to be learned.
6. "There" is no better a place than "here." When your "there" has become a "here", you will simply obtain another "there" that will again look better than "here."
7. Other people are merely mirrors of you. You cannot love or hate something about another person unless it reflects to you something you love or hate about yourself.
8. What you make of your life is up to you. You have all the tools and resources you need. What you do with them is up to you. The choice is yours.
9. Your answers lie within you. The answers to life's questions lie within you. All you need to do is look, listen, and trust.
10. You will forget all this.
Monday, October 12, 2009
Saturday, October 3, 2009
Dix Hills 5 Bedroom French Colonial For sale
Visit this link to view this 5 bedroom colonial located in Half Hollow Hills school district on over an acre HERE
Wednesday, September 30, 2009
A very good and easily navigated site to learn the best steps to take to obtain any type of home loan
I love this site. Clients and friends interested in securing home loans have found it both informative and easy to use. I believe that your first step should be to take a look HERE
And then call me to find your next home
And then call me to find your next home
Tuesday, September 29, 2009
Housing Recovery?
According to the latest breakdown of sales prices and sales volumes, it is clear that the entry level sales are strong in comparison to last year, but the "moving up" sector sales are in trouble:
• Houses Priced $0-$100,000 - Sales rose by 20.9%
• Houses Priced $100,000-$250,000 - Sales roseby 4.9%
• Houses Priced $250,000-$ 500,000 - Sales fellby 9.6%
• Houses Priced $750,000-$1 million - Sales fellby 22.5%
In my opinion these figures tell us people aren't moving "up" as they leave their lower priced homes. They are either moving to renting or back to mom & dad. Until the lower end begins to feed the higher end, overall sales figures are a bit deceiving and we have a ways to go.
These are the national numbers but the general trend is true here on Long Island as well. Bottom line is that competition amongst sellers above the $4000,000 mark here is fierce and you'd better be priced well in that sector to get your house sold.
• Houses Priced $0-$100,000 - Sales rose by 20.9%
• Houses Priced $100,000-$250,000 - Sales roseby 4.9%
• Houses Priced $250,000-$ 500,000 - Sales fellby 9.6%
• Houses Priced $750,000-$1 million - Sales fellby 22.5%
In my opinion these figures tell us people aren't moving "up" as they leave their lower priced homes. They are either moving to renting or back to mom & dad. Until the lower end begins to feed the higher end, overall sales figures are a bit deceiving and we have a ways to go.
These are the national numbers but the general trend is true here on Long Island as well. Bottom line is that competition amongst sellers above the $4000,000 mark here is fierce and you'd better be priced well in that sector to get your house sold.
Top 10 Home-Selling Mistakes
HGTV’s FrontDoor.com identified what it believes to be the top 10 home-selling mistakes.
10. Waiting until spring to sell. People buy homes all year, so play up the home’s seasonal amenities and take advantage of serious buyers looking in the off-season.
9. Not understanding the real estate contract. Go over the fine print of the agreement with your real-estate agent or attorney before signing to make sure you understand your responsibilities as well as any demands the buyer has made.
8. Going it alone without researching first. Selling a home for-sale-by-owner take time, and requires you to do paperwork, marketing and showings. Make sure you’re up for the work involved in return for saving on the real-estate agent commission fee.
7. Ignoring lowball offers. If buyers submit a low offer, don’t reject it completely. Counteroffer to see if they are willing to negotiate.
6. Wasting time on an unqualified buyer. Make sure a potential buyer is prequalified for a loan before accepting an offer.
5. Skimping on marketing. Mix traditional advertising, including a sign in the yard and an ad in a homes magazine, with Web techniques, including online photos and video.
4. Sabotaging the showing. Leave the home when it is being shown to prospective buyers so they can more easily focus, and make sure the home is accessible w! ith convenient showing hours and a lockbox for agents.
3. Not prepping for the sale. Visit open houses in the neighborhood to get a sense of what the competition offers, then make fixes and updates, declutter and clean to outshine them.
2. Overimproving. Don’t make so many upgrades that you price your home out of the appropriate range for the area and fail to recoup your investment.
1. Overpricing. Your home should be priced in line with homes in the area that are of similar age, style and size.
10. Waiting until spring to sell. People buy homes all year, so play up the home’s seasonal amenities and take advantage of serious buyers looking in the off-season.
9. Not understanding the real estate contract. Go over the fine print of the agreement with your real-estate agent or attorney before signing to make sure you understand your responsibilities as well as any demands the buyer has made.
8. Going it alone without researching first. Selling a home for-sale-by-owner take time, and requires you to do paperwork, marketing and showings. Make sure you’re up for the work involved in return for saving on the real-estate agent commission fee.
7. Ignoring lowball offers. If buyers submit a low offer, don’t reject it completely. Counteroffer to see if they are willing to negotiate.
6. Wasting time on an unqualified buyer. Make sure a potential buyer is prequalified for a loan before accepting an offer.
5. Skimping on marketing. Mix traditional advertising, including a sign in the yard and an ad in a homes magazine, with Web techniques, including online photos and video.
4. Sabotaging the showing. Leave the home when it is being shown to prospective buyers so they can more easily focus, and make sure the home is accessible w! ith convenient showing hours and a lockbox for agents.
3. Not prepping for the sale. Visit open houses in the neighborhood to get a sense of what the competition offers, then make fixes and updates, declutter and clean to outshine them.
2. Overimproving. Don’t make so many upgrades that you price your home out of the appropriate range for the area and fail to recoup your investment.
1. Overpricing. Your home should be priced in line with homes in the area that are of similar age, style and size.
Friday, September 25, 2009
Kitchen and Bath renovation is the #1 value adding investment for your home
Updated, beautiful, well designed kitchens and baths are always a great way to increase the value of your home. This designer is the best on the Island.
Please visit their site by clicking HERE
Thursday, September 24, 2009
Identifying the Most Desirable Home Features
Thinking of selling your house? What are buyers looking for in today's market? Is your house ready for this market?
This video will give you an idea of what today's buyer is looking for
Wednesday, September 23, 2009
Making Home Affordable
Have you discovered the new Making Home Affordable program for mortgages owned by Fannie Mae and Freddi Mac? It is a program put in place to help America's homeowners.
Click this link to visit their homepage
Click this link to visit their homepage
Monday, September 21, 2009
Suffolk Holds Drawing for Foreclosed Homes
It was a foreclosure fest last night as Suffolk County Executive Steve Levy and others dipped into a barrel of 68 names to determine the order in which house hunters could buy rehabbed foreclosures at affordable prices.
“Yay!” screamed Minnie Mitchell, 45, of East Morichesm who was picked fifth. The assistant head teller at a bank and a single mom with two boys threw up her hands when hearing her name.
“Do you know how bad I want to own a home?” said Mitchell, one of 30 people who attended the lottery at the H. Lee Dennison building in Hauppauge. “I am the happiest person in the world.”
It's the first housing lottery drawing on Long Island under the federally funded Neighborhood Stabilization Program, which funneled about $30 million to Long Island municipalities to buy, rehab and sell empty houses.
Suffolk and Nassau, which will hold its lottery Monday, have been working with nonprofits to identify eligible buyers who will have to pay up to $225,000 for houses that could be worth far more. Those payments would be dumped back into buying more foreclosures.
"We really want you to get these homes and put your heart and soul into it because you're helping the neighborhood. . . . You're helping the county," Levy told the group.
The Long Island Housing Partnership will determine which house hunters meet income, credit and other eligibility rules. Money not allocated for a house in the next three years will return to federal coffers.
Suffolk is in contract on three properties but expects to rehab at least 70 homes in four years in target areas such as Mastic, Bay Shore, North Amityville and other places hit hard by the foreclosure crisis. Nassau expects to rehab 100 homes.
Joe Sanseverino, Suffolk's director of community development, said both counties and the Partnership have prepared a proposal for $20 million in competitive grants in the second round of federal funds. In target areas, properties seized by the county for nonpayment of taxes would be repaired with federal funds and sold as affordable homes, he said. "While we have not as severe problems as some of the other areas, like Nevada and California, we think we can make a bigger impact in communities with our funding," Sanseverino said.
Mitchell had been house hunting for a year but couldn't find an affordable home. A real estate agent told her about the program.
"Finally," she said. "I got a break."
You can learn more about the program and if you may qualify at The Long Island Housing Partnership website by clicking here
“Yay!” screamed Minnie Mitchell, 45, of East Morichesm who was picked fifth. The assistant head teller at a bank and a single mom with two boys threw up her hands when hearing her name.
“Do you know how bad I want to own a home?” said Mitchell, one of 30 people who attended the lottery at the H. Lee Dennison building in Hauppauge. “I am the happiest person in the world.”
It's the first housing lottery drawing on Long Island under the federally funded Neighborhood Stabilization Program, which funneled about $30 million to Long Island municipalities to buy, rehab and sell empty houses.
Suffolk and Nassau, which will hold its lottery Monday, have been working with nonprofits to identify eligible buyers who will have to pay up to $225,000 for houses that could be worth far more. Those payments would be dumped back into buying more foreclosures.
"We really want you to get these homes and put your heart and soul into it because you're helping the neighborhood. . . . You're helping the county," Levy told the group.
The Long Island Housing Partnership will determine which house hunters meet income, credit and other eligibility rules. Money not allocated for a house in the next three years will return to federal coffers.
Suffolk is in contract on three properties but expects to rehab at least 70 homes in four years in target areas such as Mastic, Bay Shore, North Amityville and other places hit hard by the foreclosure crisis. Nassau expects to rehab 100 homes.
Joe Sanseverino, Suffolk's director of community development, said both counties and the Partnership have prepared a proposal for $20 million in competitive grants in the second round of federal funds. In target areas, properties seized by the county for nonpayment of taxes would be repaired with federal funds and sold as affordable homes, he said. "While we have not as severe problems as some of the other areas, like Nevada and California, we think we can make a bigger impact in communities with our funding," Sanseverino said.
Mitchell had been house hunting for a year but couldn't find an affordable home. A real estate agent told her about the program.
"Finally," she said. "I got a break."
You can learn more about the program and if you may qualify at The Long Island Housing Partnership website by clicking here
Wednesday, September 16, 2009
Credit Scores: What You Need to Know Now
By KAREN BLUMENTHAL
Are you keeping score?
Credit scores have been getting a lot of attention lately, as lenders tighten credit standards and contend with new legislation that has, among other things, reined in how credit-card issuers can raise rates.
Meanwhile, several firms, preying on our insecurities, are pushing credit scores and credit-score-tracking services for a monthly fee.
For all the attention they generate, though, credit scores are largely misunderstood. For instance, your precise score matters only when you're in need of new debt, like a home, auto or education loan or a new credit card, which should be a fairly rare occurrence.
You don't have just one score, but many. Your FICO score, the one developed by Fair Isaac Corp. that runs from a low of 300 to a high of 850, will vary depending on which credit bureau is reporting it and the kind of lender that requested it.
.So the score that costs you $15.95 at MyFico.com may not be the score your lender sees. Beyond that, the three credit bureaus— Equifax, Experian and TransUnion— sell their own proprietary scores.
Confused about what to believe? Here are some common myths about credit scores:
My credit score is a good reflection of my financial smarts and good behavior.
Not really. Your score doesn't reflect your income, employment history or your assets, which should be a part of your overall financial picture. It also doesn't show whether you pay your rent or utilities on time. As a result, a credit score is less like a report card and more like an SAT score—your results on a particular date that seek to predict your future credit success or failure.
I pay my card off every month, so I must be a low credit risk.
True, your financial habits are excellent. But they won't affect your score. That's because the credit bureaus don't have a clue whether you pay your bill in full or carry a balance on your cards each month. All they know is the amount you owed on your most recent statement.
Journal Community
Vote: How well do you understand what affects your credit score?
.Instead, the crucial fact is how much available credit you have used. Steve Ely, president of personal-information solutions at Equifax, says you should keep your credit use to less than half your credit limit to minimize the impact on your score.
Taking advantage of reward cards shouldn't affect my creditworthiness.
Unfortunately, about 30% of your FICO score is based on "credit utilization," a broad term that includes how much you've used of each credit limit, how much you've borrowed as a percentage of your total available credit and even how big the dollar balances actually are.
If you're a rewards junkie like I am, charging groceries, charitable contributions and just about everything else to get points, you may be jeopardizing your score. Based on reports I paid for, my TransUnion score was 11 points lower than my Equifax score, apparently because of my vacation-enhanced balance, even though I used less than 10% of my available credit.
Luckily, there's an easy solution: Cut back your credit-card use for two or three months before you plan to seek a car loan or mortgage so that your balances will be more modest.
Scored Straight
Credit scores, while crucial to one's financial health, are widely misunderstood. Some oft-forgotten points to consider:
They don't reflect your whole financial picture, but a snapshot of your debt at a point in time.
It doesn't matter whether you carry a balance, but it does matter if you pay on time.
The score you buy isn't necessarily the score lenders see.
You don't need to apply for new credit for credit inquiries to show up on your report.
.I was late on a payment, but the debt is now paid off. So I'm good, right?
Afraid not. The single most important factor in your score, accounting for 35% of the total, is whether you have paid your bills on time. One late payment will ding your score for up to a year, very late payments can hurt you for two or three years, and collections and bankruptcies can sting for up to seven years.
What counts as late? In theory, one day. But because credit-card companies know that people move, get sick or misplace their bills, they commonly wait to report your late payment to credit bureaus until about 30 days have passed, or you have missed two due dates. (You will likely be assessed a late fee right away, however.)
If you have missed a payment, pay it as soon as possible and consider calling and doing the honorable thing: groveling. Many companies will waive or reduce fees the first time a good customer makes a mistake, and they may even agree to withhold reporting the infraction to the credit bureau.
Information stays on my credit report for no more then seven years.
That's largely true for bad news, including late payments. But good news hangs around—and pays dividends—a lot longer. My credit report reflects the 30-year history of the credit card I got back in college.
In addition, closed accounts in good standing will stay on your record for a decade, says Barry Paperno, FICO consumer-operations manager. Both old and closed accounts can help your score because the length of your credit history is another, if smaller, piece of the formula.
Your credit card behavior affects your overall credit score.
.Preserving your credit history is one reason that Kenneth Lin, CEO of Creditkarma.com, recommends that you don't formally close an account but let the issuer close it for lack of activity. The longer the account stays open, he says, the more you'll add to your credit history and the longer you'll benefit from the additional available credit.
I haven't gotten a loan in a while, which should boost the "new credit" part of my score.
You don't have to get new credit to show a so-called hard inquiry on your credit report. If you have opened a new checking account, the bank may have checked your score. Last year, I bought a car and the dealer, unbeknownst to me, checked my credit. I never applied for a loan, but that one inquiry knocked 15 points off my Equifax score—and that's typical.
For that reason, Curtis Arnold, founder of Cardratings.com, suggests you ask up front if a bank, insurer or car dealer plans to check your credit record. Luckily, shopping around for a car or education loan or mortgage counts only as one inquiry as long as you do it within a few weeks. Otherwise, multiple inquiries may knock your score back for a year.
That said, when you check your score, when your current card company keeps tabs on your credit or when someone pre-approves you for a credit-card—all so-called soft inquiries—your score won't be affected.
The score I pay for or get for free is my real score.
Most free scores are not the FICO scores that lenders request. You can buy FICO scores from Equifax and TransUnion—but not Experian—on MyFico.com for $15.95 each, but even then, they may not be the exact score the lender actually sees. You can, however, see each of your three credit reports—which include all the activity that is used to determine your score, but not the score itself—for free once a year by going to AnnualCreditReport.com. Because your scores aren't likely to vary by much, ongoing tracking services are usually unnecessary.
I should aspire to a score above 800.
Sadly, a score of 800 or more—the holy grail for "high achievers" on online FICO forums—won't make you thinner, smarter, richer or more attractive to lenders or anyone else. True, every 20 points in your score can mean a slightly lower mortgage rate or better car loan, but only up to the mid-700s.
That means it's worthwhile to take steps to improve a score in the 600s or low 700s, and in the high 700s, you'll have plenty of room for score fluctuation. Beyond that, a higher score is meaningless.
Ben Bernanke Leaves Clues About The Future Of Mortgage Rates
On the 1-year anniversary of the Lehman Brothers collapse, Fed Chairman Ben Bernanke said Tuesday that the “recession is very likely over at this point”.
His comments were supported by a Retail Sales report for August that was much better-than-expected.
Equities improved on the day, mortgage markets worsened, and home affordability suffered.
The days of ultra-low mortgage rates may be coming to an end.
Since last September, mortgage bonds markets have been in Rally Mode. As the Financial Crisis of 2008 worsened, investors fled the relatively risky world of stocks and moved dollars into safer investments like cash and bonds — including the mortgage-backed kind.
Risk aversion is common when market uncertainty exists but last year’s aversion was so strong that, by late-November, it had forced mortgage rates down to an all-time low.
Since November, however, rates have been on the rise. Stronger economic data and a general feeling of optimism have helped stock markets recover and some of those gains are coming at the expense of low mortgage rates.
Therefore, if you’re wondering what mortgage rates might do going forward, listen to the words of the Federal Reserve Chairman. If he sees economic recovery ahead, it’s probably going to happen.
It should spell higher mortgage rates into 2010.
Monday, September 14, 2009
7 Tips for First-Time Home Buyers
A year after the financial collapse of 2008, the housing market is very different than it was before the foreclosure crisis.
Here are seven bits of wisdom from economists and financial planners for anyone contemplating a home purchase today:
Old-fashioned basics are more important than ever. The safest way to purchase a home is to put down 20 percent on a fixed-rate, 30-year (or less) mortgage.
Don’t become overconfident about income growth. Even though buyers in their 20s and 30s will likely see their incomes grow more quickly than previous generations, it is important to act sensibly when borrowing.
Anyone contemplating adding children to the family should calculate whether they could live on one income because having both halves of a couple work may turn out to be impractical.
Include a maintenance budget. Even new homes need upkeep and repairs.
Buyers who can't afford their dream home now should opt for a starter home where they can save money each month for what they really want.
Consider a property that can be expanded and improved down the road when money is available.
No two buyers are the same, but they should all feel confident with the loan they enter into, no matter the size of the mortgage.
Source: The New York Times, Ron Lieber (09/12/2009)
Here are seven bits of wisdom from economists and financial planners for anyone contemplating a home purchase today:
Old-fashioned basics are more important than ever. The safest way to purchase a home is to put down 20 percent on a fixed-rate, 30-year (or less) mortgage.
Don’t become overconfident about income growth. Even though buyers in their 20s and 30s will likely see their incomes grow more quickly than previous generations, it is important to act sensibly when borrowing.
Anyone contemplating adding children to the family should calculate whether they could live on one income because having both halves of a couple work may turn out to be impractical.
Include a maintenance budget. Even new homes need upkeep and repairs.
Buyers who can't afford their dream home now should opt for a starter home where they can save money each month for what they really want.
Consider a property that can be expanded and improved down the road when money is available.
No two buyers are the same, but they should all feel confident with the loan they enter into, no matter the size of the mortgage.
Source: The New York Times, Ron Lieber (09/12/2009)
Friday, September 11, 2009
Get Lawns Ready Now for Next Year
Get Lawns Ready Now for Next Year
Anybody who will be selling a property in the spring should get a jump on curb appeal by working now on beautifying the lawn.
Here are some key tasks that will lead to a green and healthy yard in the next selling season:
Calculate the total lawn area to learn how much seed and chemicals are required.
Treat weeds with an herbicide.
Test the pH level and, if indicated, add lime.
Plant ground cover like pachysandra and hardy ferns in low-light or slopping areas.
Before preparing, seeding and fertilizing the rest of the lawn, consider whether there are areas that might be better candidates for stepping stones or another attractive alternative to plantings.
Source: Charlotte Observer, Nancy Brachey (09/05/2008)
The Yard Doctor is Ready to Triage Your Lawn With These 6 Tips for Fall
There is no better time than fall to get yards looking great, according to the “Yard Doctor” Trey Rogers, a professor of turfgrass management in the crop and soil sciences department at Michigan State University.
Here are 6 tips from Rogers to help you and your clients take advantage of the seasonal weather and vibrant colors to add dramatic curb appeal.
1. For home owners in the northern portion of the United States, fall is the single best time to fertilize a yard. During the first 10 days of September, lay a complete nitrogen and potassium combination fertilizer.
2. Fall is also the best time to reseed grass. If you have bare spots from the summer, put down a seed mix that matches the yard during the first 15 days of September. Yards with crabgrass will notice the patches turn purple with the first frost. It is important to thoroughly seed and water those areas.
“It’s a good time because the ground is still warm, but the days are getting shorter so you don’t have as much day length to rob the moisture out of the soil,” Rogers says.
3. During the first 10 days of October, take care of those pesky weeds and dandelions. Spray a liquid broadleaf herbicide over the yard. Weeds germinate in the fall, so by treating the problem in October, there will be fewer dandelions in the spring.
4. Mow, mow, mow. If you really want a yard to look smashing, dedicate yourself to mowing twice a week with the blade set at 2 ½ to 3 inches through mid-October.
“They’ll be surprised when they see how much that makes the grass grow,” says Rogers. Don’t forget to keep watering, too.
5. It’s important to get those leaves off the ground as to not suffocate the lawn. But a better option would be to grind up the leaves and mulch them back into the yard. Most lawnmowers have blades designed for mulching. This provides natural nutrients and can be an organic weed controller — particularly maple leaves, which are a natural herbicide toward dandelions, Rogers says.
6. Play with the fall colors. Display potted mums. Think red. Dogwood bushes are cold-weather hardy and have red or yellow branches. Holly is another great way to decorate the outside of a home, where the bright red berries on the branches can standout.
Anybody who will be selling a property in the spring should get a jump on curb appeal by working now on beautifying the lawn.
Here are some key tasks that will lead to a green and healthy yard in the next selling season:
Calculate the total lawn area to learn how much seed and chemicals are required.
Treat weeds with an herbicide.
Test the pH level and, if indicated, add lime.
Plant ground cover like pachysandra and hardy ferns in low-light or slopping areas.
Before preparing, seeding and fertilizing the rest of the lawn, consider whether there are areas that might be better candidates for stepping stones or another attractive alternative to plantings.
Source: Charlotte Observer, Nancy Brachey (09/05/2008)
The Yard Doctor is Ready to Triage Your Lawn With These 6 Tips for Fall
There is no better time than fall to get yards looking great, according to the “Yard Doctor” Trey Rogers, a professor of turfgrass management in the crop and soil sciences department at Michigan State University.
Here are 6 tips from Rogers to help you and your clients take advantage of the seasonal weather and vibrant colors to add dramatic curb appeal.
1. For home owners in the northern portion of the United States, fall is the single best time to fertilize a yard. During the first 10 days of September, lay a complete nitrogen and potassium combination fertilizer.
2. Fall is also the best time to reseed grass. If you have bare spots from the summer, put down a seed mix that matches the yard during the first 15 days of September. Yards with crabgrass will notice the patches turn purple with the first frost. It is important to thoroughly seed and water those areas.
“It’s a good time because the ground is still warm, but the days are getting shorter so you don’t have as much day length to rob the moisture out of the soil,” Rogers says.
3. During the first 10 days of October, take care of those pesky weeds and dandelions. Spray a liquid broadleaf herbicide over the yard. Weeds germinate in the fall, so by treating the problem in October, there will be fewer dandelions in the spring.
4. Mow, mow, mow. If you really want a yard to look smashing, dedicate yourself to mowing twice a week with the blade set at 2 ½ to 3 inches through mid-October.
“They’ll be surprised when they see how much that makes the grass grow,” says Rogers. Don’t forget to keep watering, too.
5. It’s important to get those leaves off the ground as to not suffocate the lawn. But a better option would be to grind up the leaves and mulch them back into the yard. Most lawnmowers have blades designed for mulching. This provides natural nutrients and can be an organic weed controller — particularly maple leaves, which are a natural herbicide toward dandelions, Rogers says.
6. Play with the fall colors. Display potted mums. Think red. Dogwood bushes are cold-weather hardy and have red or yellow branches. Holly is another great way to decorate the outside of a home, where the bright red berries on the branches can standout.
Wednesday, September 9, 2009
Mortgage Applications Rise as Rates Fall
Mortgage rates declined last week, triggering a dramatic jump in mortgage applications.
The Mortgage Bankers Association reported that its weekly index of mortgage application volume rose 17 percent on a seasonally adjusted basis compared to the previous week. On an unadjusted basis, the index increased 15.8 percent and was up a whopping 64.5 percent compared to the same week a year ago.
Much of the increase was in refinances, with the refinance index increasing 22.5 percent, the biggest jump since March. The purchase index rose 9.5 percent, which was the largest gain since early April.
Mortgage rates were down across the board:
30-year fixed-rate mortgages decreased to 5.02 percent from 5.15 percent.
15-year fixed-rate mortgages decreased to 4.45 percent from 4.57 percent.
1-year ARMs decreased to 6.69 percent from 6.71 percent.
Source: Mortgage Bankers Association (09/09/2009)
The Mortgage Bankers Association reported that its weekly index of mortgage application volume rose 17 percent on a seasonally adjusted basis compared to the previous week. On an unadjusted basis, the index increased 15.8 percent and was up a whopping 64.5 percent compared to the same week a year ago.
Much of the increase was in refinances, with the refinance index increasing 22.5 percent, the biggest jump since March. The purchase index rose 9.5 percent, which was the largest gain since early April.
Mortgage rates were down across the board:
30-year fixed-rate mortgages decreased to 5.02 percent from 5.15 percent.
15-year fixed-rate mortgages decreased to 4.45 percent from 4.57 percent.
1-year ARMs decreased to 6.69 percent from 6.71 percent.
Source: Mortgage Bankers Association (09/09/2009)
Monday, August 31, 2009
45 lessons to pass on or just enjoy
45 Lessons: ENJOY!
1. Life isn’t fair, but it’s still good 2. When in doubt, just take the next small step. 3. Life is too short to waste time hating anyone. 4. Don’t take yourself so seriously. No one else does. 5. Pay off your credit cards every month. 6. You don’t have to win every argument. Agree to disagree. 7. Cry with someone. It’s more healing than crying alone. 8. It’s OK to get angry with God. He can take it. 9. Save for retirement starting with your first paycheck. 10. Love your parents because they will be gone before you know it. 11. Make peace with your past so it won’t screw up the present. 12. It’s OK to let your children see you cry 13. Don’t compare your life to others’. You have no idea what their journey is all about. 14. If a relationship has to be a secret, you shouldn’t be in it. 15. Everything can change in the blink of an eye.But don’t worry;God never blinks. 16. Take a deep breath. It calms the mind. 17. Get rid of anything that isn’t useful, beautiful or joyful. 18. Whatever doesn’t kill you really does make you stronger. 19. It’s never too late to have a happy childhood. But the second one is up to you and no one else. 20. When it comes to going after what you love in life, don’t take no for an answer. 21. Burn the candles, use the nice sheets, wear the fancy lingerie.Don’t save it for a special occasion. Today is special. 22. Over prepare, then go with the flow. 23. Be eccentric now. Don’t wait for old age to wear purple. 24. The most important sex organ is the brain. 25. No one is in charge of your happiness but you. 26. Frame every so-called disaster with these words:In five years,will this matter? 27. Always choose life. 28. Forgive everyone everything. 29. What other people think of you is none of your business. 30. Time heals almost everything. Give time time. 31. However good or bad a situation is, it will change. 32. Your job won’t take care of you when you are sick. Your friends and parents will. Stay in touch. 33. Believe in miracles. 34. God loves you because of who God is, not because of anything you did or didn’t do. 35. Don’t audit life. Show up and make the most of it now. 36. Growing old beats the alternative — dying young. 37. Your children get only one childhood. 38. All that truly matters in the end is that you loved. 39. Get outside every day. Miracles are waiting everywhere. 40. If we all threw our problems in a pile and saw everyone else’s,we’d grab ours back. 41. Envy is a waste of time. You already have all you need. 42. The best is yet to come. 43. No matter how you feel, get up, dress up and show up. 44. Yield. 45. Life isn’t tied with a bow, but it’s still a gift.
1. Life isn’t fair, but it’s still good 2. When in doubt, just take the next small step. 3. Life is too short to waste time hating anyone. 4. Don’t take yourself so seriously. No one else does. 5. Pay off your credit cards every month. 6. You don’t have to win every argument. Agree to disagree. 7. Cry with someone. It’s more healing than crying alone. 8. It’s OK to get angry with God. He can take it. 9. Save for retirement starting with your first paycheck. 10. Love your parents because they will be gone before you know it. 11. Make peace with your past so it won’t screw up the present. 12. It’s OK to let your children see you cry 13. Don’t compare your life to others’. You have no idea what their journey is all about. 14. If a relationship has to be a secret, you shouldn’t be in it. 15. Everything can change in the blink of an eye.But don’t worry;God never blinks. 16. Take a deep breath. It calms the mind. 17. Get rid of anything that isn’t useful, beautiful or joyful. 18. Whatever doesn’t kill you really does make you stronger. 19. It’s never too late to have a happy childhood. But the second one is up to you and no one else. 20. When it comes to going after what you love in life, don’t take no for an answer. 21. Burn the candles, use the nice sheets, wear the fancy lingerie.Don’t save it for a special occasion. Today is special. 22. Over prepare, then go with the flow. 23. Be eccentric now. Don’t wait for old age to wear purple. 24. The most important sex organ is the brain. 25. No one is in charge of your happiness but you. 26. Frame every so-called disaster with these words:In five years,will this matter? 27. Always choose life. 28. Forgive everyone everything. 29. What other people think of you is none of your business. 30. Time heals almost everything. Give time time. 31. However good or bad a situation is, it will change. 32. Your job won’t take care of you when you are sick. Your friends and parents will. Stay in touch. 33. Believe in miracles. 34. God loves you because of who God is, not because of anything you did or didn’t do. 35. Don’t audit life. Show up and make the most of it now. 36. Growing old beats the alternative — dying young. 37. Your children get only one childhood. 38. All that truly matters in the end is that you loved. 39. Get outside every day. Miracles are waiting everywhere. 40. If we all threw our problems in a pile and saw everyone else’s,we’d grab ours back. 41. Envy is a waste of time. You already have all you need. 42. The best is yet to come. 43. No matter how you feel, get up, dress up and show up. 44. Yield. 45. Life isn’t tied with a bow, but it’s still a gift.
Sunday, August 30, 2009
Long Island Real Estate – Un-Sold Home Inventory
The good news is that inventory is lower in all three counties in a year over year comparison; however, when you look at last year the inventory should be steadily declining until we hit a seasonal low in December but instead we see a small increase in all three counties. I am hoping that this is not a developing tread and it will see it flatten out or decrease next month.
Thursday, August 13, 2009
First-time Buyers Get State Incentive
First-time home buyers in New York have an added incentive for entering the ownership market, thanks to a new tax credit equal to 20 percent of their annual mortgage interest.
The New York State Mortgage Credit Certificate, which lasts for the life of the loan, is projected to save some borrowers as much as $30,000 over the years. Eligible buyers must meet income criteria, take out a fixed-rate loan, and occupy the home as their primary residence.
Because the incentive can be used in conjunction with a federal tax credit of $8,000, which expires on Nov. 30, industry insiders believe it will sway many fence-sitters to take the plunge.
Source: Albany Times Union, Chris Churchill (08/11/09)
The New York State Mortgage Credit Certificate, which lasts for the life of the loan, is projected to save some borrowers as much as $30,000 over the years. Eligible buyers must meet income criteria, take out a fixed-rate loan, and occupy the home as their primary residence.
Because the incentive can be used in conjunction with a federal tax credit of $8,000, which expires on Nov. 30, industry insiders believe it will sway many fence-sitters to take the plunge.
Source: Albany Times Union, Chris Churchill (08/11/09)
Wednesday, August 5, 2009
Clock running down on first-time home buyer tax credit
Tom Kraeutler
According to a news report by the National Association of Home Builders (NAHB), the clock is running down on the $8,000 tax credit for first-time home buyers. With less than four months to go, builders are urging qualified prospective buyers to start the sales process long before the Nov. 30 deadline.
Builders are also warning that faulty appraisals, completed using foreclosed properties as comparables for new homes, have been slowing down the sales process, creating hiccups in the financing stage that can often push the closing date much later than originally expected.
First-time buyers should also anticipate tighter lending standards that generally don't allow 100% financing, making buyers responsible for coming up with enough money prior to their purchase to meet required downpayment and closing costs.
The NAHB recommends young families considering becoming home owners start the process long before they put a bid on a new home. As part of that effort, builders can provide key educational information on the home buying process - including financing and closing - that buyers need to ensure that they occupy their new home in time to claim the tax credit.
For home buyers who need assistance with downpayment and closing costs, some state housing finance agencies are able to provide a short-term loan based on the home buyer's qualification for the federal tax credit.
Sixteen state housing finance agencies - in Colorado, Delaware, Florida, Idaho, Illinois, Kentucky, Massachusetts, Missouri, Nebraska, New Jersey, New Mexico, Ohio, Pennsylvania, Tennessee, Texas and Virginia - are participating in loan programs to help facilitate home sales for first-time home buyers in their area. Each state is different and qualifications and restrictions vary among the programs.
Builders say that home buyers should be warned, however, that there are organizations or individuals providing this service who are not legally permitted to do so. If the organization is a unit of state government, such as a state housing finance agency, it is safe to say that it is reputable. Otherwise, a home buyer should check with their local Better Business Bureau or through a state or local government's department of consumer affairs to ensure that the program they are working with is legitimate.
Although the tax credit has three requirements listed for home buyers to qualify - status as a first-time home buyer, time frame in which the home must be purchased, and income limits - it is sometimes not that simple. Specific situations - such as those involving the sale of a home between related individuals or prior ownership of a mobile home as a primary residence - may result in a buyer's disqualification from claiming the credit.
In a statement released last week, the Internal Revenue Service (IRS) warned taxpayers to beware of first-time home buyer tax credit fraud. Home buyers who may be unsure of their status on claiming the tax credit should seek professional advice from a certified public accountant or an enrolled agent licensed by the federal government.
Wednesday, July 22, 2009
Thursday, July 16, 2009
Long Island Real Estate – Total Un-Sold Home Inventory
All three counties are showing a decline in un-sold home inventory, with Suffolk county showing the largest decline in a year over year comparison.
These figures show that we are working through the unprecedented inventory here on Long Island. This is an excellent sign that we have gotten through the worst of it, and while many factors must be looked at to determine the "bottom" of the market, the simple law of supply and demand is working in the favor of the market improving.
Friday, July 10, 2009
Long Island home purchases fall to 3-year low
July 6, 2009 | by The Long Island Real Estate Report
The number of weekly closings on private homes and condos on Long Island has fallen by 42.3% during the 29 month period beginning January 1, 2007. During the same period, the number of weekly foreclosure auction sales has risen by 133%.In January 2007, the average number of closings per week was 643, as opposed to 371 in May 2009. The average number of foreclosure auction sales per week was 18, rising to 42 in May 2009.
Note: Averages are based on standard trend formulas.
Over 88% of the foreclosure homes were taken over by the holders of the mortgage, indicating that the amount due on the mortgage was greater than the current market value of the property.
Monday, June 29, 2009
Recession may be near bottom, new data suggest
06-24---------------------------------------------------------------------------------
WASHINGTON (AP) — New signals the recession could be nearing a bottom emerged Wednesday in figures showing that orders to U.S. factories surged last month for everything from computers to aircraft and that a gauge of business investment rose by the most in nearly five years.
Still, an unexpected drop in new-home sales in May made clear that any rebound in the housing market, and the broader economy, likely will be long and slow.
Economists said the two reports showed an economy no longer in free-fall but still unable to mount a sustained recovery from the longest recession since World War II.
Hours after the Commerce Department figures were released, policymakers at the Federal Reserve decided to leave a key interest rate unchanged at a record low between zero and 0.25 percent, where it has been since December. Wrapping up a two-day meeting, the central bank repeated a pledge to leave rates low "for an extended period" to give the weak economy time to heal.
Though energy and other commodity prices have risen recently, the Fed said inflation will remain "subdued for some time." But Fed policymakers offered no new assurances that they would step up their purchases of government bonds and mortgage securities to try to drive down rates on consumer debt. That rattled bond investors who fear the prospect of higher interest rates. So did the Fed's observation that commodity prices are rising.
The mention of higher prices hit the Treasury market because the value of returns on fixed-income investments can erode quickly if inflation occurs. Stocks also fell after the Fed's announcement. The Dow Jones industrial average closed down 23 points at 8,299.86. Broader stock averages ended the day higher, though.
The 1.8 percent increase in durable goods orders in May was far better than the 0.6 percent decline that economists expected. It matched the rise in April, with both months posting the best performance since December 2007, when the recession began.
Orders for non-defense capital goods, a proxy for business investment plans, jumped 4.8 percent, the biggest increase since September 2004. That could signal that businesses have stopped trimming their investment spending.
The back-to-back monthly gains in orders for durable goods — items expected to last at least three years — were further evidence that a dismal stretch for U.S. manufacturers may be nearing an end. But analysts say any sustained rebound is months away.
Rebecca Blank, undersecretary of commerce for economic affairs, cautioned against reading too much into the big jump in durable-goods orders because the data can be volatile. But she said the report appears to show that the recent plunge in activity has subsided.
"The $64,000 question is how long we will be in this flat period," Blank said in an interview. "You don't want to call too much of a recovery yet."
Private economists also were cautious, in light of rising unemployment, record levels of home foreclosures and spreading global economic weakness that's depressing U.S. exports.
"The U.S. factory sector still has a long way to go and is facing the headwind of one of the deepest global contractions in a generation," said Cliff Waldman, an economist with the Manufacturers Alliance/MAPI.
Brian Bethune, chief U.S. financial economist at IHS Global Insight, was a bit more optimistic. He said the economy was nearing a turning point "from recession to recovery."
< p>The other government report showed new home sales dropped 0.6 percent in May to a seasonally adjusted annual rate of 342,000, from a downwardly revised April rate of 344,000. Economists had expected a sales pace of 360,000 last month. Sales were down nearly 33 percent from a year ago.
The median sales price, $221,600, fell 3.4 percent from a year earlier but was up 4.2 percent from April.
Excluding transportation, orders for durable goods posted a 1.1 percent rise in May, also better than the 0.4 percent drop that had been expected. Demand for transportation products rose 3.6 percent. That reflected a 68.1 percent jump in orders for commercial aircraft, a volatile category that had fallen 1.4 percent the previous month.
The big increase in aircraft offset further weakness in the troubled auto sector. Demand for motor vehicles and parts fell 8.1 percent in May, signaling disruptions from the bankruptcy filings at Chrysler LLC and General Motors Corp.
Orders for machinery rose 7.7 percent last month. Demand for computers and related products surged 9.4 percent.
The overall economy, as measured by the gross domestic product, has posted the worst six-month stretch in more than 50 years. The government is scheduled to revise the first-quarter GDP figure Thursday, but analysts expect the overall figure to stay at a decline of 5.7 percent.
Many economists say that GDP in the current quarter will show a much smaller decline, around 2 percent, with growth returning in the second half of this year.
Copyright 2009 The Associated Press.
WASHINGTON (AP) — New signals the recession could be nearing a bottom emerged Wednesday in figures showing that orders to U.S. factories surged last month for everything from computers to aircraft and that a gauge of business investment rose by the most in nearly five years.
Still, an unexpected drop in new-home sales in May made clear that any rebound in the housing market, and the broader economy, likely will be long and slow.
Economists said the two reports showed an economy no longer in free-fall but still unable to mount a sustained recovery from the longest recession since World War II.
Hours after the Commerce Department figures were released, policymakers at the Federal Reserve decided to leave a key interest rate unchanged at a record low between zero and 0.25 percent, where it has been since December. Wrapping up a two-day meeting, the central bank repeated a pledge to leave rates low "for an extended period" to give the weak economy time to heal.
Though energy and other commodity prices have risen recently, the Fed said inflation will remain "subdued for some time." But Fed policymakers offered no new assurances that they would step up their purchases of government bonds and mortgage securities to try to drive down rates on consumer debt. That rattled bond investors who fear the prospect of higher interest rates. So did the Fed's observation that commodity prices are rising.
The mention of higher prices hit the Treasury market because the value of returns on fixed-income investments can erode quickly if inflation occurs. Stocks also fell after the Fed's announcement. The Dow Jones industrial average closed down 23 points at 8,299.86. Broader stock averages ended the day higher, though.
The 1.8 percent increase in durable goods orders in May was far better than the 0.6 percent decline that economists expected. It matched the rise in April, with both months posting the best performance since December 2007, when the recession began.
Orders for non-defense capital goods, a proxy for business investment plans, jumped 4.8 percent, the biggest increase since September 2004. That could signal that businesses have stopped trimming their investment spending.
The back-to-back monthly gains in orders for durable goods — items expected to last at least three years — were further evidence that a dismal stretch for U.S. manufacturers may be nearing an end. But analysts say any sustained rebound is months away.
Rebecca Blank, undersecretary of commerce for economic affairs, cautioned against reading too much into the big jump in durable-goods orders because the data can be volatile. But she said the report appears to show that the recent plunge in activity has subsided.
"The $64,000 question is how long we will be in this flat period," Blank said in an interview. "You don't want to call too much of a recovery yet."
Private economists also were cautious, in light of rising unemployment, record levels of home foreclosures and spreading global economic weakness that's depressing U.S. exports.
"The U.S. factory sector still has a long way to go and is facing the headwind of one of the deepest global contractions in a generation," said Cliff Waldman, an economist with the Manufacturers Alliance/MAPI.
Brian Bethune, chief U.S. financial economist at IHS Global Insight, was a bit more optimistic. He said the economy was nearing a turning point "from recession to recovery."
< p>The other government report showed new home sales dropped 0.6 percent in May to a seasonally adjusted annual rate of 342,000, from a downwardly revised April rate of 344,000. Economists had expected a sales pace of 360,000 last month. Sales were down nearly 33 percent from a year ago.
The median sales price, $221,600, fell 3.4 percent from a year earlier but was up 4.2 percent from April.
Excluding transportation, orders for durable goods posted a 1.1 percent rise in May, also better than the 0.4 percent drop that had been expected. Demand for transportation products rose 3.6 percent. That reflected a 68.1 percent jump in orders for commercial aircraft, a volatile category that had fallen 1.4 percent the previous month.
The big increase in aircraft offset further weakness in the troubled auto sector. Demand for motor vehicles and parts fell 8.1 percent in May, signaling disruptions from the bankruptcy filings at Chrysler LLC and General Motors Corp.
Orders for machinery rose 7.7 percent last month. Demand for computers and related products surged 9.4 percent.
The overall economy, as measured by the gross domestic product, has posted the worst six-month stretch in more than 50 years. The government is scheduled to revise the first-quarter GDP figure Thursday, but analysts expect the overall figure to stay at a decline of 5.7 percent.
Many economists say that GDP in the current quarter will show a much smaller decline, around 2 percent, with growth returning in the second half of this year.
Copyright 2009 The Associated Press.
Tuesday, June 23, 2009
10 Things To Look Out For With Bank-Owned Property Contracts
DISCLAIMER: Nothing within this post is intended as legal advice or comprehensive answers to all questions, nuances, etc. that may come up in particular transactions. Consult an attorney for guidance. The following points were derived from the material given to attendees as part of yesterday’s REO contracts presentation.
Practical Considerations of REO Contracts
1.The buyer is generally getting the benefit of their bargain up front in the price - not in the ease or speed of the transaction
2.The seller is a corporate entity, which is both positive and negative. You don’t have to deal with an emotional seller that has unrealistic expectations about property value, etc. On the other hand, sometimes big corporate sellers “do what they want.” These banks are selling properties all over the U.S. making it difficult to conform to local custom and practice
3.Approximately half of all REO transactions do not close on time. Have a plan B should settlement be delayed (e.g. don’t schedule contractors to come out to the property the day after settlement, don’t settle on a Friday especially not before a long holiday weekend, etc)
4.Some bank sellers take the position that if the REO addendum is silent on an issue addressed in the original offer, that is a conflict and the REO addendum controls/prevails (e.g. appliances, home warranty, seller closing cost credit, etc). If something that you “agreed upon” in the original offer/contract is not listed/addressed in the REO addendum, the bank seller may argue that it’s not part of the contract
5.Even though the property is sold “as is”, there may be room for negotiation on a case by case basis
6.HOA Disclosure package - by law, the bank seller should provide this
7.Residential Property Disclosure Statement - by law, the bank seller is exempt from providing this
8.Make sure you change the locks immediately after you take possession of the property
9.Consider a longer rate lock period on financing from your lender - about 50 percent of REO transactions do not close on time
10.The latest revision to CRESPA (Consumer Real Estate Settlement Protection Act) states that the buyer’s right to choose a settlement agent/title company can not be varied or waived by any agreement - including an REO addendum (effective July 1, 2009)
Once again, this is not intended as legal advice. Every bank’s addendum and every transaction is different. I’ve even seen different versions of an REO addendum from the same bank.
Point is…be smart, read the entire addendum and know how the addendum affects the transaction and you as the buyer (even if that means consulting a real estate lawyer). But also know that bank sellers “do what they want” so even though it may seem “wrong” or “unfair”, there may be little, if any chance of getting the bank to change the language in the addendum.
Purchases of bank owned properties as with any real estate transaction is best handled by an experienced attorney that specializes specifically in real estate law. As your Realtor I can recommend a local attorney to guide you through the contracts.
Wednesday, June 10, 2009
How To Receive A Cash Gift For Downpayment
Tighter mortgage guidelines since late-2008 are forcing home buyers to make bigger downpayments. Anecdotally, the change has led to a surge in buyers taking gifts of cash from family members.
If you’re among those accepting a cash gift from family, it’s important to know that you can’t just deposit the money in your bank account.
There is a proper way to accept a cash gift and it requires 3 distinct steps:
1.Complete and sign an acceptable gift letter
2.Document the gifter’s withdrawal of funds with teller receipts
3.Document the giftee’s deposit of funds with teller receipts
See, mortgage lenders pay close attention to gifts-for-downpayments. For one, lenders have to make sure that downpayment cash is “clean” (i.e. not laundered). And, secondly, they want the gift to really be a gift and not a loan-in-disguise.
This is why lenders will often require that a signed, dated letter accompany the home loan application.
As an example:
I am the [relationship to recipient] of [name of recipient] and this letter serves as evidence that I am gifting [name of recipient] [amount of gift] to be used for the purchase of the home at [complete address of property].
This is a gift — not a loan — and there is no expectation of repayment.
Signed,
[Signature of gifter]
To further appease lenders, gift recipients should make sure that gift funds are not commingled at the time of deposit. If the gift is for $12,000, for example, the bank’s deposit slip should indicate that a $12,000 deposit was made — nothing more, nothing less.
Don’t add a random $50 check to the deposit, in other words. If you have a separate deposit to make, make it as a subsequent transaction with its own receipt.
It’s also worth noting that gifting funds between family members can create both legal and tax liabilities. If you’re unsure about how donating or receiving a gift may impact you, call or email me directly. If I can’t help you with your questions, I can refer you to somebody that can.
Friday, June 5, 2009
The $8,000 First-Time Home Buyer Tax Credit Program Expands: 5 Things to Know
from U.S. News:
As the historic housing plunge rumbles on, Uncle Sam is offering a fresh incentive to get first-time home buyers off the sidelines. U.S. Housing and Urban Development Secretary Shaun Donovan on Friday unveiled a policy change that would provide home buyers with quicker access to a recently enacted first-time home buyer tax credit. Buyers would be free to put the funds toward closing costs and a portion of their down payment. The federal government hopes that the measure will stimulate housing demand, something desperately needed to help mop up the glut of unsold inventory.
Here are five things you need to know about the policy change:
1. Less waiting: President Barack Obama's $787 billion economic stimulus plan—which was signed into law in mid-February—included a tax credit worth up to $8,000 for qualified first-time home buyers. These buyers, however, couldn't get their hands on the cash until after tax season. The new HUD initiative would enable these borrowers to obtain short-term loans allowing them to tap the tax credit before going to closing. "Families will now be able to apply their anticipated tax credit toward their home purchase right away," Donovan said in a news release. "What we're doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing."
2. Initial 3.5 percent: The measure, however, comes with several key limitations. First, it only applies to Federal Housing Administration mortgages. More importantly, the short-term loans can't be used to pay for the minimum 3.5 percent down payment that FHA loans require. Instead, the loan can be used for closing costs and to finance the portion of the down payment that exceeds the 3.5 percent threshold. The administration opted to have borrowers come up with the initial 3.5 percent themselves to ensure that buyers have "some skin in the game," which may reduce the likelihood of default, says Howard Glaser, a mortgage industry consultant and a former HUD official. In so doing, federal officials had to strike a delicate balance. "On the one hand, you want to make sure that homes are affordable to first time home buyers, but you don't want to set the bar so low that people who can't afford homes are buying homes," Glaser says.
3. Closing costs: Despite these limitations, the benefits of the program should not be overlooked, says Guy Cecala, publisher of the trade publication Inside Mortgage Finance. "The down payment is probably the biggest chunk of change you have got to pay [when purchasing a home], but it is not the only thing," Cecala says. "Even with a typical FHA loan, there are probably $3,000 to $4,000 in closing costs, title insurance, and [additional fees]." By chipping in toward such costs, the program "could just grease the wheels for a couple more people to get into FHA," says Keith Gumbinger of HSH.com. At the same time, borrowers who use the short-term loan to increase the size of their down payment could obtain a lower mortgage rate.
4. Impact? Cecala doesn't believe the new measure is a game changer for the battered real estate market. "I think it will be helpful to a first-time home buyer," he says. "Is it going to generate a lot more housing activity? No." Cecala argues that would-be buyers remain on the fence largely out of a concern that a home will lose value after the purchase. Such concerns will continue with or without the policy change.
Glaser, however, is more optimistic. "This is the missing piece," he says. "Home prices are coming down significantly in some markets, interest rates at historic lows, and now, by addressing cash on the table at closing, I think that borrowers who wouldn't have otherwise been in the market are going to feel more confident about investing in a home."
5. State efforts: The details of the HUD initiative come after several states have enacted similar programs. Missouri, for example, has had a program in place since January that enables home buyers to put the tax credit towards closing costs or their down payment.
This combined with the volatile mortgage rates should get anyone still sitting on the fence contemplating purchasing their first home to realize that NOW is what they've been waiting for.
Please contact me to help you find and close on your perfect home here on Long Island
As the historic housing plunge rumbles on, Uncle Sam is offering a fresh incentive to get first-time home buyers off the sidelines. U.S. Housing and Urban Development Secretary Shaun Donovan on Friday unveiled a policy change that would provide home buyers with quicker access to a recently enacted first-time home buyer tax credit. Buyers would be free to put the funds toward closing costs and a portion of their down payment. The federal government hopes that the measure will stimulate housing demand, something desperately needed to help mop up the glut of unsold inventory.
Here are five things you need to know about the policy change:
1. Less waiting: President Barack Obama's $787 billion economic stimulus plan—which was signed into law in mid-February—included a tax credit worth up to $8,000 for qualified first-time home buyers. These buyers, however, couldn't get their hands on the cash until after tax season. The new HUD initiative would enable these borrowers to obtain short-term loans allowing them to tap the tax credit before going to closing. "Families will now be able to apply their anticipated tax credit toward their home purchase right away," Donovan said in a news release. "What we're doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing."
2. Initial 3.5 percent: The measure, however, comes with several key limitations. First, it only applies to Federal Housing Administration mortgages. More importantly, the short-term loans can't be used to pay for the minimum 3.5 percent down payment that FHA loans require. Instead, the loan can be used for closing costs and to finance the portion of the down payment that exceeds the 3.5 percent threshold. The administration opted to have borrowers come up with the initial 3.5 percent themselves to ensure that buyers have "some skin in the game," which may reduce the likelihood of default, says Howard Glaser, a mortgage industry consultant and a former HUD official. In so doing, federal officials had to strike a delicate balance. "On the one hand, you want to make sure that homes are affordable to first time home buyers, but you don't want to set the bar so low that people who can't afford homes are buying homes," Glaser says.
3. Closing costs: Despite these limitations, the benefits of the program should not be overlooked, says Guy Cecala, publisher of the trade publication Inside Mortgage Finance. "The down payment is probably the biggest chunk of change you have got to pay [when purchasing a home], but it is not the only thing," Cecala says. "Even with a typical FHA loan, there are probably $3,000 to $4,000 in closing costs, title insurance, and [additional fees]." By chipping in toward such costs, the program "could just grease the wheels for a couple more people to get into FHA," says Keith Gumbinger of HSH.com. At the same time, borrowers who use the short-term loan to increase the size of their down payment could obtain a lower mortgage rate.
4. Impact? Cecala doesn't believe the new measure is a game changer for the battered real estate market. "I think it will be helpful to a first-time home buyer," he says. "Is it going to generate a lot more housing activity? No." Cecala argues that would-be buyers remain on the fence largely out of a concern that a home will lose value after the purchase. Such concerns will continue with or without the policy change.
Glaser, however, is more optimistic. "This is the missing piece," he says. "Home prices are coming down significantly in some markets, interest rates at historic lows, and now, by addressing cash on the table at closing, I think that borrowers who wouldn't have otherwise been in the market are going to feel more confident about investing in a home."
5. State efforts: The details of the HUD initiative come after several states have enacted similar programs. Missouri, for example, has had a program in place since January that enables home buyers to put the tax credit towards closing costs or their down payment.
This combined with the volatile mortgage rates should get anyone still sitting on the fence contemplating purchasing their first home to realize that NOW is what they've been waiting for.
Please contact me to help you find and close on your perfect home here on Long Island
Mortgage Rates Hit 25-Week High
Mortgage Rates Hit 25-Week High
Mortgage rates across the board jumped this week, with conventional mortgages reaching their highest point so far this year.
Freddie Mac reports a jump in the 30-year fixed mortgage rate to a 25-week high of 5.29 percent during the week ended June 4, up from 4.91 percent the prior week. As recently as two months ago, rates had been 4.78 percent.
The 15-year fixed rate also increased, rising to 4.79 percent from 4.53 percent, with Freddie Mac chief economist Frank Nothaft indicating that the gains follow a surge in long-term bond yields.
Meanwhile, the five-year adjustable mortgage rate climbed to 4.85 percent from 4.82 percent, and the one-year ARM surged to 4.81 percent from 4.69 percent.
Mortgage rates across the board jumped this week, with conventional mortgages reaching their highest point so far this year.
Freddie Mac reports a jump in the 30-year fixed mortgage rate to a 25-week high of 5.29 percent during the week ended June 4, up from 4.91 percent the prior week. As recently as two months ago, rates had been 4.78 percent.
The 15-year fixed rate also increased, rising to 4.79 percent from 4.53 percent, with Freddie Mac chief economist Frank Nothaft indicating that the gains follow a surge in long-term bond yields.
Meanwhile, the five-year adjustable mortgage rate climbed to 4.85 percent from 4.82 percent, and the one-year ARM surged to 4.81 percent from 4.69 percent.
Friday, May 29, 2009
How to Get the $8,000 First-Time Home Buyer Credit Upfront
The Federal Housing Administration rolled out details of its policy Friday that will let first-time home buyers apply an $8,000 tax credit to fund home purchases.
Until now, home buyers were only able to get that money after they bought a home, by applying for the credit–10% of the home’s price up to $8,000–on their tax returns.
The policy change means home buyers, who use FHA-backed financing, can get a short-term loan to help buy a home. The loan is repaid a few months later, after the buyer files an amended tax return and receives the credit.
A few important notes:
This is only for FHA loans, which require a minimum 3.5% down payment.
Borrowers must first come up with the minimum 3.5% themselves. The bridge loan would cover a larger down payment.
Borrowers can still use loans from certain non-profits and state and local housing finance agencies to fund the 3.5% down payment.
A handful of states, including Colorado, New Jersey and Ohio, have already launched programs providing bridge loans that allow home buyers to ‘monetize the tax credit,’ which expires Dec. 1. And Realtors and homebuilders have pushed hard for the agency to do the same. But the industry could be disappointed by the plan, announced at a builder conference Friday by HUD Secretary Shaun Donovan, because they wanted to allow buyers to use the credit to fund the initial 3.5% down-payment. The FHA’s policy makes sure that buyers still have “skin in the game” by funding their initial down payment, even if they use tax credit to fund closing costs and a larger down payment.
Until now, home buyers were only able to get that money after they bought a home, by applying for the credit–10% of the home’s price up to $8,000–on their tax returns.
The policy change means home buyers, who use FHA-backed financing, can get a short-term loan to help buy a home. The loan is repaid a few months later, after the buyer files an amended tax return and receives the credit.
A few important notes:
This is only for FHA loans, which require a minimum 3.5% down payment.
Borrowers must first come up with the minimum 3.5% themselves. The bridge loan would cover a larger down payment.
Borrowers can still use loans from certain non-profits and state and local housing finance agencies to fund the 3.5% down payment.
A handful of states, including Colorado, New Jersey and Ohio, have already launched programs providing bridge loans that allow home buyers to ‘monetize the tax credit,’ which expires Dec. 1. And Realtors and homebuilders have pushed hard for the agency to do the same. But the industry could be disappointed by the plan, announced at a builder conference Friday by HUD Secretary Shaun Donovan, because they wanted to allow buyers to use the credit to fund the initial 3.5% down-payment. The FHA’s policy makes sure that buyers still have “skin in the game” by funding their initial down payment, even if they use tax credit to fund closing costs and a larger down payment.
Sunday, May 10, 2009
Getting Your Remodel Off to a Good Start
Are you itching to breathe new life into an outdated or poorly-functioning kitchen? Hold on. Put down the phone. Before contacting a remodeling professional, you'll need to do a little soul-searching and research first.
"[Planning] is the first phase of any project, and sometimes it's the phase that's ignored," says Everett Collier, president of the National Association of the Remodeling Industry (NARI). "The more pre-planning that one can do, the better off they are."
1. CREATE A STYLEBOOK
If you're even thinking about a kitchen remodel, odds are you have been leafing through design magazines and watching HGTV. Both are great ways to jumpstart the process, but to get the most out of this step, you'll need to do more than turn pages and program your TiVo.
While looking through magazines, tear out photos of kitchens that appeal to you and write what you like about the room in the margin. Then slip the page into a clear sheet protector and insert that into a three-ring binder to create a stylebook.
The Internet is another source for kitchen inspiration. If you see a kitchen that interests you on HGTV, often photos of the room will be available on HGTV.com. (Start by looking at Designers' Portfolio: Kitchens). Simply print the photos and add them to your stylebook. As your stylebook grows, a clear picture of your desired style of kitchen will begin to emerge. That's helpful for you, but it's also helpful for the remodeling professional you will eventually hire.
"We like to go through [the stylebook] to get a blush of what they're after," says Sara Ann Busby, owner of Sara Busby Designs, a remodeling company in Elk Rapids, Mich.
2. DEFINE YOUR GOAL
There's obviously a reason you want to remodel your kitchen. What is it? Perhaps you want a kitchen that will help with resale in a few years. Maybe you desire a kitchen built for entertaining or one that allows several people to cook at once. This is the time to assess your needs and wants. Make notes about how you plan to use the remodeled space, then try to distill all that information into a one- or two-sentence goal such as, "My casual and open kitchen will be a place for family and friends to relax and enjoy healthy meals."
3. CREATE A BUDGET
To get a general idea of how much you have to spend on a kitchen remodel, you will need to crunch some numbers. NARI offers a worksheet that makes the math easy. Are granite countertops a must-have? How about stainless steel appliances? Do a little research into the costs of your wish list items and compare them with your preliminary budget. Are you on target?
4. SET A TIME BUDGET
When most people hear the word budget, they automatically think of money. However, when remodeling, it's also important to budget time. Is there an event on the calendar that would be affected if your kitchen was under construction? Discuss your time budget when interviewing potential remodelers.
5. HAVE REALISTIC EXPECTATIONS
Above all else make sure you have reasonable expectations when it comes to your kitchen remodel. Talk to people who have been through the process before.
"Sit down with your family and talk about what you're about to embark on," says Suzie Williford, National Kitchen & Bath Association treasurer and vice president of sales for Westheimer Plumbing & Hardware in Houston. "It's going to take a certain amount of time. It's going to have a certain amount of mess. It's going to be a financial stress, and if you don't know all this ahead of time and you go in with rose colored glasses, then that takes all the fun out of it. And, you know, it should be fun."
"[Planning] is the first phase of any project, and sometimes it's the phase that's ignored," says Everett Collier, president of the National Association of the Remodeling Industry (NARI). "The more pre-planning that one can do, the better off they are."
1. CREATE A STYLEBOOK
If you're even thinking about a kitchen remodel, odds are you have been leafing through design magazines and watching HGTV. Both are great ways to jumpstart the process, but to get the most out of this step, you'll need to do more than turn pages and program your TiVo.
While looking through magazines, tear out photos of kitchens that appeal to you and write what you like about the room in the margin. Then slip the page into a clear sheet protector and insert that into a three-ring binder to create a stylebook.
The Internet is another source for kitchen inspiration. If you see a kitchen that interests you on HGTV, often photos of the room will be available on HGTV.com. (Start by looking at Designers' Portfolio: Kitchens). Simply print the photos and add them to your stylebook. As your stylebook grows, a clear picture of your desired style of kitchen will begin to emerge. That's helpful for you, but it's also helpful for the remodeling professional you will eventually hire.
"We like to go through [the stylebook] to get a blush of what they're after," says Sara Ann Busby, owner of Sara Busby Designs, a remodeling company in Elk Rapids, Mich.
2. DEFINE YOUR GOAL
There's obviously a reason you want to remodel your kitchen. What is it? Perhaps you want a kitchen that will help with resale in a few years. Maybe you desire a kitchen built for entertaining or one that allows several people to cook at once. This is the time to assess your needs and wants. Make notes about how you plan to use the remodeled space, then try to distill all that information into a one- or two-sentence goal such as, "My casual and open kitchen will be a place for family and friends to relax and enjoy healthy meals."
3. CREATE A BUDGET
To get a general idea of how much you have to spend on a kitchen remodel, you will need to crunch some numbers. NARI offers a worksheet that makes the math easy. Are granite countertops a must-have? How about stainless steel appliances? Do a little research into the costs of your wish list items and compare them with your preliminary budget. Are you on target?
4. SET A TIME BUDGET
When most people hear the word budget, they automatically think of money. However, when remodeling, it's also important to budget time. Is there an event on the calendar that would be affected if your kitchen was under construction? Discuss your time budget when interviewing potential remodelers.
5. HAVE REALISTIC EXPECTATIONS
Above all else make sure you have reasonable expectations when it comes to your kitchen remodel. Talk to people who have been through the process before.
"Sit down with your family and talk about what you're about to embark on," says Suzie Williford, National Kitchen & Bath Association treasurer and vice president of sales for Westheimer Plumbing & Hardware in Houston. "It's going to take a certain amount of time. It's going to have a certain amount of mess. It's going to be a financial stress, and if you don't know all this ahead of time and you go in with rose colored glasses, then that takes all the fun out of it. And, you know, it should be fun."
Top 10 Home-Staging Dos
Please Do:
Set your listing price by utilizing area comparables, not based upon what you need to buy that ostrich farm.
Put personal collections away someplace safe, like a bank vault in Zurich.
Invest in a fresh coat of paint and get 150 percent green back on your investment.
Disclose everything, especially the stuff you are tempted not to.
Fix all running toilets, or risk flushing profits down the drain.
Remember that "outside" is the new "inside." Show off all of your living spaces.
Visit model homes to see how neutrality and spaciousness are made to feel so inviting.
Grind a lemon in the garbage disposal – it smells great and it's such great exercise.
Display the kind of plants that aren't injection-molded and painted in a factory somewhere overseas.
Keep your day job. Hire an agent and assist them in doing what they do best.
Set your listing price by utilizing area comparables, not based upon what you need to buy that ostrich farm.
Put personal collections away someplace safe, like a bank vault in Zurich.
Invest in a fresh coat of paint and get 150 percent green back on your investment.
Disclose everything, especially the stuff you are tempted not to.
Fix all running toilets, or risk flushing profits down the drain.
Remember that "outside" is the new "inside." Show off all of your living spaces.
Visit model homes to see how neutrality and spaciousness are made to feel so inviting.
Grind a lemon in the garbage disposal – it smells great and it's such great exercise.
Display the kind of plants that aren't injection-molded and painted in a factory somewhere overseas.
Keep your day job. Hire an agent and assist them in doing what they do best.
Top 10 Real Estate Home- Staging Don'ts
Please Don't:
1. Rationalize that a higher asking price means you will have more wiggle room. You could wind up sitting idle on the market with a house full of wiggle room.
2. Respond to lowball offers with a counter — instead, respond with an invitation to re-submit.
3. Refer to a leaky foundation as a central humidifier.
4. Make your house smell like a cherry orchard or a department store perfume counter.
5. Air your dirty laundry. This includes leaving bills and private papers out, or, of course, actual dirty laundry.
6. Take your prospects on A Complete History of The Kopecki Repairs & Renovations Tour.
7. "Clean up" by stuffing all the closets.
8. Leave unfinished DIY jobs for the buyers' honey-do list.
9. Defer yard work. Your house only gets one chance to make a first impression. Overgrown shrubs and broken gutters are the real estate equivalent of dandruff.
10. Think licks from Rex the Bulldog will help generate more offers.
1. Rationalize that a higher asking price means you will have more wiggle room. You could wind up sitting idle on the market with a house full of wiggle room.
2. Respond to lowball offers with a counter — instead, respond with an invitation to re-submit.
3. Refer to a leaky foundation as a central humidifier.
4. Make your house smell like a cherry orchard or a department store perfume counter.
5. Air your dirty laundry. This includes leaving bills and private papers out, or, of course, actual dirty laundry.
6. Take your prospects on A Complete History of The Kopecki Repairs & Renovations Tour.
7. "Clean up" by stuffing all the closets.
8. Leave unfinished DIY jobs for the buyers' honey-do list.
9. Defer yard work. Your house only gets one chance to make a first impression. Overgrown shrubs and broken gutters are the real estate equivalent of dandruff.
10. Think licks from Rex the Bulldog will help generate more offers.
Saturday, May 9, 2009
"Community" is priceless
Long Island is probably thought of as a sprawling suburb of Manhattan by most of the world. Those of us that make our homes here know better. We are instead a group of “small towns” located within commuting distance of the greatest metropolis in the world.
I am witness to this feeling everyday as I go about my life here on the south shore. It is especially strong for me on this Saturday afternoon. I just came from the 14th annual East Islip alumni lacrosse game. It is held every year in memory of a 1981 graduate who played for East Islip. His name was Craig Kohlhepp and he was taken from us by a brain tumor shortly after graduation. This game is organized by Joe Ancona, the varsity coach at East Islip High School. He was a player almost 30 years ago when the program was in it’s infancy and came back to lead the team into the upper echelons of the game here on Long Island. The game is always a great time, but more than that it is an opportunity for the alumni to get together and remember what a fine community we are all a part of.
These types of events go on all over Long Island for all kinds of reasons. It seems that each town has at it’s core a sense of community usually associated with “small towns”
Whether it be a sick child, a local project, a sports program, a music program, or any number of causes, each town comes together as a community to take care of their own.
Property value is so much more than a number on a page. The value of a strong community is priceless. That is why while it may be relatively expensive to stay here on the Island it is well worth it to most of it’s inhabitants.
Right now is the time that can open the chance for many of our young people to invest in a home and enjoy all that each community has to offer it’s residents. The time is ripe to enter the housing market and invest in the positive future that is Long Island.
Friday, May 8, 2009
Have Rates Bottomed Out?
Could mortgage rates have bottomed out?
It looks like the time to jump at these rates is TODAY
The economy shed 539,000 jobs in April, raising the 6-month total to nearly 4 million jobs lost.
And while the April data may look bad, it’s actually 10% better than what was expected.
As a result, it’s turning into a bad day to be shopping for mortgage rates.
After bottoming out early last week, conforming, 30-year fixed rate mortgages have risen in cost by as much as three-quarters of a percent. Today’s good-for-the-economy report may push costs higher still.
Now, it may seem odd to categorize 539-thousand lost jobs as “good-for-the-economy”, but it’s important to remember that on Wall Street, expectations are everything.
Investors are constantly buying and selling securities based on what they think will happen in the future. And, up until this morning, there was an expectation that 600-thousand jobs had been lost in April.
As it turns out — relative — the actual job loss data wasn’t so bad.
Now, markets are making adjustments and re-forming expectations of what’s ahead for the economy. They’re preparing for things like higher levels of consumer spending in the months ahead, and fewer home foreclosures nationwide. Both outcomes would help to spur the economy from recession.
This helps explain the stock market’s early rally, too.
For now, mortgage markets remain sensitive to whiffs of an economic recovery. In general, if there’s good news for the country, it going to be bad news for mortgage rates.
Mortgage rates are off slightly in advance of the weekend.
It looks like the time to jump at these rates is TODAY
The economy shed 539,000 jobs in April, raising the 6-month total to nearly 4 million jobs lost.
And while the April data may look bad, it’s actually 10% better than what was expected.
As a result, it’s turning into a bad day to be shopping for mortgage rates.
After bottoming out early last week, conforming, 30-year fixed rate mortgages have risen in cost by as much as three-quarters of a percent. Today’s good-for-the-economy report may push costs higher still.
Now, it may seem odd to categorize 539-thousand lost jobs as “good-for-the-economy”, but it’s important to remember that on Wall Street, expectations are everything.
Investors are constantly buying and selling securities based on what they think will happen in the future. And, up until this morning, there was an expectation that 600-thousand jobs had been lost in April.
As it turns out — relative — the actual job loss data wasn’t so bad.
Now, markets are making adjustments and re-forming expectations of what’s ahead for the economy. They’re preparing for things like higher levels of consumer spending in the months ahead, and fewer home foreclosures nationwide. Both outcomes would help to spur the economy from recession.
This helps explain the stock market’s early rally, too.
For now, mortgage markets remain sensitive to whiffs of an economic recovery. In general, if there’s good news for the country, it going to be bad news for mortgage rates.
Mortgage rates are off slightly in advance of the weekend.
Friday, May 1, 2009
Home Buyers Tax Credit
Please refer to the following link for a useful video explaining the $8,000 Home Buyer Tax Credit. This credit combined with historically low mortgage rates, and more available inventory than ever before this century make this
the perfect time to buy a home on Long Island.
click here for the video
the perfect time to buy a home on Long Island.
click here for the video
59 Woodland St. Real Estate For Sale East Islip
PRICED TO SELL!!
This updated ranch features newer siding, roof, windows, and heating system with an open floor plan, and a full finished basement. This lovely home is located close to major highways for an easy commute and is minutes from great shopping on a quiet street. It's large lot has room to expand and is perfect for the family starting out or the empty nesters.
Please visit this home on the web at this link
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