Today's Real Estate Reality Blog

6 Things You Need to Know About New FHA Home Loans

With the passing of H.R. 5981 and the resulting Public Law 111-229, FHA was given authority to change the amount charged to borrowers for both the Up Front and the Annual insurance premiums it requires to insure home loans.

These FHA Mortgage Insurance Premium changes are outlined in Mortgagee Letter 2010-28 and become effective for all FHA case numbers assigned on or after October 4th, 2010.

Here are the 6 things that every home buyer or homeowner refinancing needs to know about changes to FHA Mortgage Insurance Premiums:

1. The Up Front premium is now 1.0 % for all standard FHA programs (purchase money mortgages, full credit-qualifying refinances, streamline refinances)
2. The Annual premium is now .90% for LTVs GREATER than 95% on 30 year loans
3. The Annual premium is now .85% for LTVs EQUAL to or LESS than 95% on 30 year loans
4. The Annual premium is now .25% for LTVs GREATER than 90% on 15 year loans
5. The Annual premium is now .00% for LTVs EQUAL to or LESS than 90% on 15 year loans
6. These premiums apply to purchases, regular refinances and streamlines

Please note that this new law also gives FHA the authority to raise the Annual premium at will up to 1.5% for LTVs at or below 95% and 1.55% for LTVs more than 95%.

Change is inevitable – except from a vending machine. - Robert C Gallagher

If you’re uncertain as to how the new law and changes to FHA Mortgage Insurance Premiums could affect your ability to buy a home or refinance your existing home, contact me for a free mortgage consultation.

Top Real Estate and Mortgage Headlines for September 1st

It’s Wednesday and it’s the start of a new month. Here is today’s top real estate headlines according to the National Association of Realtors.

• Commercial Real Estate Yields Spur Investors
  Capitalization rates averaged 7.22 percent in the second quarter, or 4.29 percentage points higher than the yield on 10-year government bonds.
• Housing Less Likely to Be Wealth Builder
  The markets will stabilize, but some experts doubt that prices will rise faster than inflation.
• Mortgage Applications Slip Slightly
  The purchase index dropped 0.4 percent, but refinancings were up 2.8 percent last week as interest rates continue to fall, according to the Mortgage Bankers Association.
• No Class-Action Status on Phony Appraisals
  A U.S. District Court refused a request for class-action status in a suit by First American Corp. shareholders who said that the stock tanked when the company was charged with colluding with Washington Mutual to inflate appraisals.
• Hyperlocal Focus Is Key to Market Domination
  A multi-pronged approach including online and offline marketing plans and a six-month budget can help agents boost their share of the business.
• Google Invests in Low-Income Housing
  The Internet giant is spending $86 million on a tax-credit fund to finance the construction of 480 affordable housing units.

These are the top real estate and mortgage headlines for today, September 1, 2010.

Want to know how these national real estate headlines could impact you right here locally in Crown Point Indiana? Subscribe to this blog, Today’s Real Estate Reality, and let my years of experience in Crown Point Indiana guide you to an informed and successful real estate transaction.

Porter County Indiana – Home to 54 Nature Trails And More

Get ready to trek the wilds of Porter County Indiana. Finally in one location, there is a booklet of all the best nature trails and points of interest for the amateur nature lover in your family. And with 54 nature trails to choose from, you can visit one a week for an entire year before visiting the same place twice.

In case you missed it Chesterton Indiana’s old Porter County Convention Recreation and Tourism Bureau has been renamed and re-branded. The new name is now Indiana Dunes Tourism, reflecting the emphasis on the lakeshore, the State and National Parks, and a new appreciation for the unique biodiversity, bird migration, nature habitats, and Lake Michigan. Eco-tourism comes to Northwest Indiana.

Indiana Dunes Tourism even hired noted nature photographer Ted Eubanks to assist them in producing some high quality campaigns and support materials. And one of the results is a 44 page booklet called “Beyond The Beach: Discovery Trail Guide” where you can locate and plan your weekend excursions across the rural vistas of Porter County Indiana.

The free booklet is organized into three topographical categories: Dunes, for the lakefront and oak forests; Moraine, referring to the highlands around Valparaiso Indiana where the ancient glaciers came to rest; and finally the Kankakee Region for the rich agricultural and wetlands in the Southern portion of the county around the Kankakee and Yellow river basins.

There are activities for bicyclists, bird-watchers, kayakers, hikers, railroad and history buff’s, just to name a few. If you don’t make it to every physical location in Porter County the booklet also offers plenty of tantalizing photos to bring you back again. You can obtain a free copy of  “Beyond The Beach: Discovery Trail Guide” at the Dorothy Buell Memorial Visitor Center in Chesterton Indiana. There is an extensive collection of tourism brochures from across the region, as well as a gift shop and bookstore with an assortment of memorabilia and nature guides.

Come enjoy one of 54 nature trails throughout Porter County Indiana and learn why so many nature lovers have come to call Porter County Indiana home. When Mother Nature calls you to come home to Porter County Indiana, call upon me to help you unearth your dream home in Porter County Indiana.

Top Real Estate Headlines for Week Ending: August 27th

As we all look forward to the weekend, let’s pause for a moment to review what the top real estate and mortgage headlines were this week according to the National Association of Realtors.

• July Existing-Home Sales Fall, But Prices Rise
  Home prices rose in July, though existing-home sales continued their slide following the expiration of the home buyer tax credit.
• Is the Housing Slowdown a Sign of a Double-Dip?
  As unemployment and mounting foreclosures continue to bind the housing market, analysts fear a slide back into recession.
• Foreclosures Down, But Late Payments Up
  The inventory of houses in the process of foreclosure are down for the first time since 2006, but the number of loans that are one payment late went back up.
• Commercial Conditions Favor Business Growth
  Rent discounts and other favorable conditions in commercial real estate markets make it a good time for expansion moves by business, an NAR report suggests.
• 4 Business Tips for Social Networking Success
  Are you using social networks to garner more business leads? Read tips on how to expand your reach.
• Mortgage Rates Continue to Fall
  Average interest on long-term mortgages hit a record low for the eighth time in nine weeks, and could go even lower.
• 7 Must-Have Apps for Your Smartphone
  Get ideas on some of the latest apps that can be used in your real estate business, from faxing on-the-go to creating property “reminder” tours.
• Protest Rising Over Resale Charges
  Some builders are now including in contracts a clause that requires buyers to pay them a 1 percent transfer fee every time the house is sold over the next 99 years.
• New York Housing Bucking Trends
  Inventory has dropped in half from a year ago and well-priced apartments are selling in a week.
• Fannie Mae to Prohibit ‘Appraisal Cutting’
  The secondary mortgage market company doesn’t want lenders to cut valuations anymore on appraisals in dispute.
• Military Growth Drives Fastest Rise in Income
  Jacksonville, N.C. tops the list of USA Today’s metro areas with the largest per-capita income gains from 2000 to 2009. See what other cities made the list.

These were the top real estate and mortgage headlines for the week ending August 27, 2010.

Want to know how these national headlines could impact you right here in Northwest Indiana? Subscribe to this blog, Today’s Real Estate Reality, and let our resident local market real estate experts guide you to an informed and successful real estate transaction.

Have We Hit The Bottom Yet in Portage Indiana Real Estate

People across Portage Indiana have been asking me lately about real estate prices. “Do we see light in the tunnel?” they ask.  Since real estate markets move in up and down cycles, economists and homeowners alike all want to know when market trends are entering a new phase. Can they time their move to be positioned ahead of the next wave? 

Whether you are talking about the stock market, real estate, or gold bars, timing the market is not so easy to predict. And in real estate, it depends on where you live.

This week we have had economists from the National Association of Realtors and the National Association of Home Builders both giving generally negative views about the real estate market. This suggests to many homeowners and armchair Realtors that the market for Portage Indiana is headed for even more price declines.

It’s not that simple. When analyzing home sales data from other nearby communities, we see the real estate market has acted differently, depending on the location.

And don’t forget about those first 3 rules of real estate: Location, Location, Location.

Since the recession began in 2007 Portage Indiana real estate market has had a roller coaster ride as median home prices have dipped 3 separate times with rallies in between. Your community may be different. For example, median home prices in Crown Point Indiana crashed about 15% way back in 2008 and they have skidded around at roughly the same median home price ever since.

Consider that, overall,  real estate has been in the current down cycle for over 3 years now. We also know that it is the lack of jobs that is holding back the overall economy.

So we do not really need the help of technical books and investment seminars to know that, in general, as long as you have a decent job, this is a terrific time to buy a home in Portage Indiana. Home affordability is at an all time high with interest rates at historic lows and depressed home prices all around. 

Will home prices go down further? Maybe yes. Maybe no. If you wait too long for home prices to hit rock bottom in Portage Indiana, you may find yourself getting in after the real estate market has already gone up.  Or if interest rates have clicked up another notch, your delay in taking action will affect your payment even more.

My advice? Do what is best for your family and your situation. Your house is shelter first; an investment second. If you are trading up, don’t stress out about how much your current home was worth in 2005. Rather, focus on the great deal you are getting on a better home which you might not have been able to afford back then.

Change will always come. Experienced Realtors are here to provide you with the information you need to make informed decisions in any market. If you’re ready to learn more about the Portage Indiana real estate market and what steps you need achieve home ownership, contact me to help get you moved.

*Photo: Market Timing for Dummies by Joe Duarte MD – BN.com

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