Considerations When Refinancing and Assessing Your Debt

When trying to determine what current obligations you have, be sure to include any existing mortgages on the home, so this mean you’re first and second.  In addition, consider any other debts you have outside of that.  If you have a line of credit that was used for any other purposes other than repairs or appraisals, then this loan won’t be eligible to pay off.  

Keep in mind that when you are looking at your payoff amount, the actual pay off is going to include any unpaid interest until the end of the month, and it will also include any early payment penalties.  If you aren’t sure what that is and you just want to ask, be sure to call the servicer of your current mortgage and they would be glad to help you.  

If you are looking to get cash out loan, then you can take up to 85% of your home’s value.  That will allow you to even borrow on a property that you have owned for a year provided you don’t go over that 85%.  Just keep these factors in mind so that you have a realistic expectation of what is going to happen during the process and what you will walk away with at closing.  

-Mayer Dallal

www.fhaloansnow.net

What to Consider When Buying Your Home

So many of my clients want to know if the pricing they are seeing for a home is fair.  My answer to this is yes.  The prices on homes have dropped nearly 60% and maybe a little less it just depends upon the area that you are looking in.  The key to buying a home is just focusing on what is important for you and your family.  As a family with small children you will want to consider moving to an area where there are other families raising children, and a good school system.  When moving a family, you may have to be more “future-minded”, meaning you plan to stay and let your children graduate from those schools too.  Moving too often isn’t good for young children because they need a place to call home.  There is no better time to buy than now if you want to make a home for your family. 

 

What Buying a Home Can Do for You 

The second benefit I share with families I work with is this; buying now puts you into a good position.  You get a great home, for a great value, and when the market begins to recover you will be able to look at the equity that you have built up in your home over time.  This puts a family into a great position, so that if they do end up having to relocate for a job or for some other reason than they can take pride in knowing that the investment they put into the home paid them a return.  This keeps the housing market healthy with families being able to go into another home with a more solid down payment than before buy making some money on the first property they owned. 

-Mayer Dallal

Pending Home Sales Rise in March

Pending home sales did go up in March by 5.1%, and this was released by the National Association of Realtors. This was a welcome change after watching the bouncing up and down, and left feelings of uncertainty as the level of contracts out there were rising unevenly or slowly at the least. February was low, but that is no surprise due to the holidays and the fact that consumers had spent their money and weren’t quite ready to buy. So, is the rise in pending home sales just simply a trend that occurs each year? 

An Overall Gain on Pending Home Sales 

Overall, pending home sales did increase nearly 24%, and while that sounds good we aren’t quite there yet. Right now, I am encouraging everyone I know to buy before the rates go up and while the prices of homes are low. This won’t happen again, so if you are on the fence it’s time to get off the fence and get busy. Don’t thing that someone else can do it for you because they can’t. Only you can take that first step to buy your first home, or make a radical decision to buy another one. Go to www.fhaloansnow.net for more information, and to get connected the right professionals. 

-Mayer Dallal

Slow Go on Remodeling Matches Up With Industry Numbers

It doesn’t really surprise me all that much that more and more remodeling companies are getting phone calls about remodeling more than builders are getting phone calls on building new homes. The challenge? Staying busy due to the economy because no one is for sure where the money is coming from tomorrow. Many are not cautious about spending money because they feel it’s too much, but because if they lose their job where will the next dollar come from? Joblessness is still the real issue behind what is happening, and if that doesn’t change the market will remain on the downturn. 

Remodelers Busy Due to Tax Returns

Remodelers report that they are busy right now which is great, but they just feel that people are slow to commit. Obtaining loans to build new is one thing, while spending money on repairs or remodeling is another. Many also believe that what spurred the market for remodeling is income tax returns so once that dries up, they are feeling that the need for repairs will too. Many are seeking to rent once they have been foreclosed upon, simply because it’s not just about paying less if they can, but not having to worry about home repairs and the other expense of upkeep of landscaping. 

-Mayer Dallal

Who Spends Too Much Money on Rent

In all my life I never thought I would hear that there are people spending more than half their income on rent and utilities. This could be in part because there are some folks now receiving unemployment. Call me crazy, but that is a high number. Think about it; I am telling you that spending more than half your income on rent and utilities isn’t good, and we had families in loans that were nearly 55% of their income. We still have all these people who have to spend more money on their rent, so there are still many things that need to change. 

Will the American Budget Crisis Change Rent? 

Our country is a financial crisis, and it makes me wonder if knowing where we are right now with rents increasing, will that change the face of the way rent is being charged? We have got to find a way to get things down and streamline all of our financial obligations to the point where we change as a nation. Given the budget crisis, we need to find better ways to maintain our properties better with minimal cost, and be able to accommodate those who need to trim down what they pay to live.

Why Buyers Have Been Feeling Angry

Those who are looking to buy have been sharing opinions on what it has been like to find a home. The opinions of many of these buyers have been heated, and the debate hasn’t been the increase in insurance premiums on FHA loans either. The challenge and debate has been over the number of homes in inventory that are attractive, and apparently there hasn’t been enough of that going around. I recently read about an interview that CEO of Redfin Corporation had with a customer in California. While she works in the television industry, she is blighted by the fact that there hasn’t been much to pick from for less than $500,000 since the 90’s. How does that factor in right now? 

The Challenge of Being Outbid

This buyer’s challenge in California was not always the inventory in the price range, but the fact that so many homes were being snatched up by investors without her getting the chance to fairly bid on them. It seems that debate has been hot, and while there are plenty of homes to choose from it has posed a bit of a problem for many. I am not sure that there is a happy medium here, because depending on what shape the house is in, there are buyers who aren’t ready or willing to put money into the home upfront. I can understand that because with everyone watching every penny, including those who do have a significant down payment, after moving who wants to keep working around the clock on a new home? 

For more information on how to get the expertise and help you need in buying your new home, you can visit my website by going to www.fhaloansnow.net, or you can call me right now at 310-498-2700. I have a strategic alliance of realtors I work with and other experts that can help us get further along than you ever imagined. 

-Mayer Dallal