Mortgage rates have changed again this week. The market seems to swing according to the media focus. With the start of the Olympics, we may be in for a bit of a reprieve. However, according to a CNN article by Les Christie, borrowers may benefit by locking in their interest rate (pre closing). Several experts cited in the article expect interest rates to go up in the next six weeks and forecast...
That is the question of the hour from buyers of Palos Verdes real estate (and probably nationwide). Should buyers believe the doomsayers or the optimists? Today the LA Times has a very balanced answer to their question. Reasons not to buy are mostly from economic forecasts, statistics and ratios. Reasons to buy look at the benefits of home ownership (you can't be evicted, you can control the...
Friday's mortgage rates are up between 1/4 percent (jumbo 5/1 Year ARM) and 3/4 percent (jumbo 30 year fixed) compared to my last Mortgage Update on June 8, 2008. As you can see from the chart above, today's borrower of a 30 year fixed loan will pay 6.5% conforming and 7.75% jumbo. Attention buyers: The time is right to get off the fence and purchase your new home now. Rates are not forcasted to...
"How is my credit score determined?" ask buyers of Palos Verdes real estate. The chart above details the scoring system used by Fair Isaac, the creator of the FICO score, one of the most widey used credit scoring methods employed by most banks and lenders in the United States. What surprised me is that Payment History (35%) is twice as important as Length of Credit History (15%) . Making even a...
Where exactly is the real estate market going? Owners of Palos Verdes real estate as well homeowners across the country would love to know the answer. In addition to the "in your face" reporting about real estate (which can be pro or con depending on the reporter and which forecast he is looking at) there are other subtle indicators. Recently Newsweek had an article buried on page 61 entitled...
Friday's mortgage rates are up slightly compared to our last Morgage Update two weeks ago. At that time a 30 year fixed rate mortgage was 5.75% conforming and 6.75% jumbo. As you can see from the chart above, today a borrower will pay 6.125% conforming and 6.875% jumbo. Friday's mortgage rates for Palos Verdes homes are provided by Jim Kurata, Peninsula Mortgage/Chase...
Interest rates on home loans are down one full percentage point in some categories from April 17, 2008, for example 5.5% for a 30 year fixed loan due in 10 years. Tuesdays, I attend our Office Meeting and then go on to the Palos Verdes Real Estate Broker's Tour. Better loan rates were the pleasant surprise at our Office Meeting. Today's Broker's Tour had 24 properties to view in approximately two...
Buyers may need 5% more down payment to buy homes that are designated to be in a declining market. By the way, the entire state of California (including real estate in Palos Verdes) is considered a "soft market" by Freddie Mac and Fannie Mae. Kenneth R. Harney of the Washington Post wrote an excellent article on April 26, 2008, entitled "Declining Markets and Self-Fulfilling Prophecies(which was...
This is an open letter to Buyers. If you are looking for foreclosures or REOs (bank owned real estate) in Palos Verdes or the South Bay, here are some ideas to help you... One for the Money -You must have your finances ready. The Bank-Seller has already experienced shaky finances from the prior owner. Get pre-approved from your lender and have them pull your current FICO scores. You will also...