Paul Gerber.com's Personal News
 
Date: 11-30-2011
Subject: Pending Home Sales Jump in October
Daily Real Estate News | Wednesday, November 30, 2011
Pending home sales rose strongly in October and remain above year-ago levels, according to the National Association of REALTORS?.
The Pending Home Sales Index, a forward-looking indicator based on contract signings, surged 10.4 percent to 93.3 in October from 84.5 in September and is 9.2 percent above October 2010, when it stood at 85.5. The data reflects contracts but not closings.
Lawrence Yun, NAR chief economist, said improved contract activity is a hopeful sign. ?Home sales have been plodding along at a sub-par level while interest rates are hovering at record lows, and there is a pent-up demand from buyers who normally would have entered the market in recent years. We hope this is indicates more buyers are taking advantage of the excellent affordability conditions,? he said.
?Many consumers are recognizing that home buyers in the past two years have had one of the lowest default rates in history. Moreover, continued inventory declines are another healthy sign for the housing market,? Yun added.
The PHSI in the Northeast surged 17.7 percent to 71.3 in October and is 3.4 percent above October 2010. In the Midwest, the index jumped 24.1 percent to 88.7 in October and remains 13.2 percent above a year ago. Pending home sales in the South rose 8.6 percent in October to an index of 99.5 and are 9.7 percent higher than October 2010. In the West the index slipped 0.3 percent to 105.5 in October but is 8.1 percent above a year ago.
?Although contract signings are up, not all contracts lead to closings. Many potential home buyers inadvertently hurt their credit scores and chances of getting a mortgage through easily averted actions, such as cancelling an old credit line while taking on a new one,? Yun said. ?Such actions could unwittingly prevent buyers from obtaining a mortgage if their credit score is close to the margins of qualifying, or they might get a loan but with less favorable terms.?
NAR encourages consumers to be aware of their credit score and actions which could hurt or enhance it. HouseLogic.com, the association?s consumer Web site devoted to all aspects of home ownership, offers tips for improving credit scores at http://buyandsell.houselogic.com/articles/7-tips-improving-your-credit/.
Date: 11-02-2011
Subject: Picking the right mortgage option

If you're currently home shopping or planning to refinance, it's important to decide on a specific mortgage program.
Let's take a look at some of the most popular loan programs out there to determine which will be the best fit for you.
30-Year Fixed
This is the granddaddy of them all, and the go-to for most homeowners. It also happens to be the simplest mortgage to get your head around. Go figure. Put simply, it's a 30-year term loan with a fixed rate. In other words, the interest rate never changes during the life of the loan. So if you're risk-averse, and plan on staying in your home for the foreseeable future, this is your mortgage. Just know that the mortgage rate will be higher to compensate for the relative safety.
15-Year Fixed
Another popular (and conservative) choice is the 15-year fixed. Just like the 30-year, the interest rate will never change during the life of the loan. But the mortgage term is cut in half, meaning monthly mortgage payments will be much higher. This program is good for the homeowner that actually wants to pay down their mortgage, while minimizing interest paid. You will certainly pay a lot less interest. Just be sure you can handle the larger payment!
Other FRMs
While the 30-year and 15-year are the most popular and well known fixed-rate mortgages (FRMs), you may also come across additional options, such as 10, 20, 25, and 40-year fixed terms. Be sure to consider all of them when shopping your mortgage.
5/1 ARM
If you're a little more daring, you may also want to take a look at the adjustable-rate mortgage (ARM) options available. The most popular is the 5/1 ARM, which is fixed for the first five years of the 30-year term, and adjustable for the remaining 25. This makes it a hybrid ARM, meaning it's fixed for a while before becoming adjustable. If you don't plan on being in your home for long, this could save you some serious money, as the interest rate will be significantly lower than fixed-rate options. Just take caution, as the rate can also surge once those five years are up.
Other ARMs
There are also a number of other ARMs, ranging from as short as a 6-month program to a 10-year product. Obviously, the shorter the fixed period, the more likely you'll wind up with an actively adjustable-rate mortgage. Also know that the shorter the fixed period, the lower the initial interest rate. So a 1-year ARM may be cheap at the onset, but adjust much higher before you know it. And a 10/1 ARM may price just slightly lower than fixed-rate options because of its long fixed period.
There are certainly plenty of options to choose from and your risk appetite, coupled with your unique financial/life position, should determine which is best. But don't rush your decision. Crunch the numbers using a mortgage calculator, make a long-term plan, and comparison shop before making your choice!
Date:
Subject: Vacation Beach Rental on the Sea of Cortez
El Dorado Ranch is located 7 miles north of the town of San Felipe, Baja California, Mexico. Only 120 miles from the US, El Dorado Ranch is an easy 2 hour drive across the border. The Ranch serves as a vacation and retirement resort development like no other in the Baja. This 2 bedroom, 2 1/2 bath townhome includes an attached 2 car garage, a fully equipped kitchen with granite counters, private patio with built-in BBQ. A few steps to one of the 3 pool/spa areas. Located within a private golf community just steps from the beach. On the location map it's building 29 unit 2. Contact Paul to arrange accommodations.
Date:
Subject: Reach Investment Brokers/Property Managers Across the Country
The American Apartment Owners Association has just launched a section to feature Real Estate Brokers & Property Managers. Visit http://www.american-apartment-owners-association.org. Click on either the "Real Estate Brokers", or the "Prop Mgmt Companies" tab to access the state you wish to search.

 

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