Austin Hires Consultants to Analyze City
May 3, 2009 | Leave a Comment
In March, BBC Research & Consulting released their full findings regarding the comprehensive housing market survey. Their first recommendation is that Austin reevaluate the zoning and development process and BBC noted a lack of density as problematic in the housing market.
The full report is quite long, but very interesting for those interested in the full findings the City of Austin will be studying as they move forward with development of our great city.
Highlights and analysis can be found at the Austin Contrarian.
Explaining What The Federal Reserve Did In Plain English
March 19, 2009 | Leave a Comment
Fed announces new fiscal support
The Federal Open Market Committee voted to leave the Fed Funds Rate unchanged today, within the target range of 0.000-0.250 percent. This doesn’t mean the Fed stood pat, however.
On plan to resurrect the economy using “all available tools”, today, the Fed announced a new, $1.5 trillion round of fiscal support for the treasury and mortgage markets.
The stimulus will likely be Thursday morning’s headline story.
Too far gone to save? Huh?
In its press release, the FOMC touched upon a few of the prevailing economic issues, using these points as a legitimizing backdrop for its newest debt load:
- Job losses and wealth loss are dragging down consumer spending
- Some U.S. trading partners are falling into recession
- Businesses are cutting back on investment and inventory
Of interest is that the FOMC said today’s inflation levels may be too low to support economic growth at all. This condition is more commonly called deflation. The Fed’s latest actions, therefore, may be a deliberate attempt to induce inflation through unprecedented borrowing.
GOOD News for home buyers?
For home buyers and potential refinancers, this is terrific news — at least in the short-term. By introducing new demand for mortgage bonds, the Fed will help pressure mortgage rates lower. Already this afternoon, mortgage rates fell and they will continue to fall until the market reaches a new equlibrium.
After the Fed’s last intervention, markets reached their balance point in about a day-and-a-half.
Source: bringtheblog
One Place You Shouldn’t “Go Cheap” at Home
March 11, 2009 | Leave a Comment
Extend the life of your AC
Changing your air filters regularly keeps your household energy costs down and extends the life of your HVAC unit(s). It’s important, however, to use air filters that actually work.
Walk into any hardware store and you’ll see a host of filters at various price points, starting at 99 cents. Before you reach for the cheapest products, though, watch the 1-minute video above.
Mesh = no bueno
A mesh filter isn’t going to stop most airborne particles. Because buying the recommended pleated air filters can be expensive, consider purchasing in bulk from a store like Home Depot, or from Amazon. Air filters don’t “go bad”, you can store your discounted filters
Experts recommend changing air filters quarterly at minimum. If your home has shedding pets or is dust-prone, consider changing them monthly.
Homes Listed For Sale Plummet Across U.S.
March 10, 2009 | Leave a Comment
Supply & Demand
If you asked an economist why home prices have broadly fallen over the past 2 years, you’d get a short lesson in Supply and Demand.
Too many homes for sale and not enough people to buy them pushed values lower until a balance point can be reached.
Looking at the chart, that balance point may be fast approaching.
According to data compiled by ZipRealty, the total number of homes listed for sale fell in February 2009 in 23 of 24 major housing markets.
Abnormal numbers
This is an especially important data point because home inventories typically rise in February, ahead of the Spring Home-Shopping Season.
Since 1982, February home inventory has been up 3 percent on average. Last month, it fell.
So, in support of the Supply and Demand Theory, we shouldn’t be surprised that the rate of price decline as shown by the Case-Shiller Home Price Index is easing in a lot of markets, too.
We may not have reached the housing market bottom yet, but if we haven’t, the data shows us we could be close. Austin is at the very bottom of the list, but we never quite overheated like California. This will be interesting to watch and we’ll keep you updated!
story source: bringtheblog
Do You Qualify for Mortgage Relief?
March 9, 2009 | Leave a Comment
Austinites, do you qualify?
When the White House first introduced the Making Home Affordable program in February, it was positioned as a mortgage program with two goals:
- To help financially-needy homeowners get mortgage relief
- To help homeowners who’ve lose equity qualify for today’s low rates
Wednesday, in a much-anticipated announcement, the U.S. Treasury introduced new details about Making Home Affordable.
It also created an ”Am I Eligible For Making Home Affordable” form on its website.
President Obama’s blueprint
In the press release, the Treasury detailed the President’s original blueprint. Namely, it provided explicit loan modification instructions that will assist up to 4 million delinquent homeowners and their respective mortgage servicers.
The modification guidelines are a thorough 17 pages long and leave little question about the loan modification process, and how it must be carried out.
But for as much ink committed to helping delinquent homeowners, the Treasury gave surprisingly little guidance to the estimated 5 million homeowners for whom deteriorating home equity has rendered refinancing impossible.
Uh, who is in the 5 million???
For these Americans, the Treasury instead offers a basic Q&A and directs homeowners to call Fannie Mae and/or Freddie Mac to confirm their eligibility. The “refinance plan”, in summary, says that a homeowner who has paid his mortgage as agreed and whose home value is “about the same or less” as the amount owed on his first mortgage may be eligible.
That’s about as much as the Treasury could say.
If after browsing the website, you still have questions about the Making Home Affordable program, email us.
story source: bringtheblog
The First-Time Homebuyer Credit Form
March 7, 2009 | Leave a Comment
First Time Homebuyers in Austin
As part of the American Recovery and Reinvestment Act of 2009, the IRS has officially released Form 5405 – better known as the First-Time Homebuyer Credit Form.
True to tax code standards, the 10-field form is accompanied by 3 pages of instructions.
Form 5405 is a helpful, go-to resource for home buyers with questions about the tax credit.
For example, the form distinguishes tax consequences for homes bought in 2008 versus 2009, and clearly defines the term “first-time home buyer”.
How it works:
In addition, Form 5405 highlights the math behind the tax credit. In general, the First-Time Homebuyer Credit is equal to the lesser of:
- $8,000 for homes bought in 2009
- 10 percent of the home’s purchase price
Married couples filing separately are entitled to half of the expected credit, and homes sold within 3 years are subject to a credit repayment in the year the home ceases to be the “main home”.
Form 5405 is a comprehensive reference. However, be sure to check with your accountant for specific questions about your personal returns and how the First-Time Homebuyer Credit may impact your finances. There is no substitute for professional, paid advice.
content source: bringtheblog
Austin Real Estate Statistics
March 4, 2009 | Leave a Comment
Should Austin Be Nervous?
Do you need to sell your house in 7 days and aim to make a 70% profit over what you bought it for with zero down last year? You should probably be nervous. Are you looking to buy a home or list your home for a reasonable price? You might be fine. Look, things are nasty in the American economy, but there are amazing deals out there AND if you’re not looking to make a ridiculous profit on a home you just bought, even listing a home isn’t a major panic right now, just know that your home may ride the market a little longer now than a year ago.
Gimme the numbers already!
Okay, okay! The most recent annual MLS data based on sold inventory between 2/1/2008 to 1/31/2009 (which is just one snapshot of data) shows:
- Average sales price: $244,233
- Average days on market: 90
- Number of homes sold: 20,595
- Months of inventory*: 6.2
*Months of inventory is an estimation of how long it will take for all the market’s homes to be sold based on how many homes are currently on the market and the rate homes have sold in the past.
Currently, there are 10,642 homes for sale in Austin. Granted, the MLS areas are not equal in size, the largest number of active listings is 748, located in the “LS” area which is the south shore of Lake Travis (see map here). The area with the longest days on market is “LW” on the map, the Dripping Springs/Blanco area west of Lake Travis coming in at 199.9 average days on market while “10S” (the William Cannon/Mopac area) has the lowest average days on market at 47.99 days.
Can You Guess What Percentage Of Mortgages Are Still Paid On-Time?
March 1, 2009 | 1 Comment
Relax, it’s not all bad news
Using anonymous data from its national credit database, TransUnion reports that 4.58 percent of American homeowners were at least 60 days past due on mortgage payments last quarter.
Comparing the statistic to the data from a year ago, the credit reporting agency goes on to say that mortgage delinquencies are up 53 percent.
Although fair, the comparison carries a distinct, negative connotation because if we flip the data to its positive, the statistics don’t seem nearly as menacing.
A positive sign!
Consider: In the last quarter of 2008, 4.58 percent of homeowners were delinquent on their respective mortgages. The positive sign, therefore, is that 95.42 percent of homeowners were not delinquent on their home loans.
Furthermore, in looking at TransUnion’s data for the 5 largest states in the Union, it’s clear that the national delinquency rate is being skewed by California and Florida. New York and Texas, for example, exhibit delinquency rates below the national 4.58 percent marker.
North Dakota’s delinquency rate hovers near 1 percent.
Headlines are designed to attract eyeballs and nothing else. To get the complete story, therefore — the real story — it never hurts to dig a little deeper into the facts.
(Image courtesy: TransUnion). Content source: BringTheBlog.
3 DIY Projects That Can Help Your Home Sell For More
February 23, 2009 | Leave a Comment
Tips, tips, tips!
In a tight economy, do-it-yourself home improvements projects not only save money, but may also justify a higher listing price for a soon-to-be home seller.
In the 4-minute video above, Sweat Equity host Amy Matthews talks with NBC’s Matt Lauer about affordable home upgrades that even the least skilled home remodelers can finish on their own.
Three of the huge, bang-for-the-buck projects discussed are:
- Refinish laminate countertops for $95.
- Replace hollow “builders’ doors” with sturdy doors for $200 each.
- Install kitchen and bathroom backsplashes for $500 each.
The video also recommends installing a basement egress window, if possible. As far as DIY goes, it’s a little bit more complex but the results are stunning.
Content source: BringTheBlog
More Signs Of Recovery : The Cost Of Owning Versus Renting Falls Back To Historical Norms
February 4, 2009 | Leave a Comment
Housing recovery
One popular housing theory is that — before a bona fide housing recovery can begin – the cost of owning a home versus renting one must return to historical levels.
If that belief is a truth, a national return to rising home prices may be in store for 2009.
Falling home prices coupled with falling mortgage rates, too, have dropped the relative, after-tax cost of owning a home to 125% of the cost of renting a home.
It’s been a while…
This is the exact 18-year historical average and not since 2001 has the gap been this small.
As reported by the Wall Street Journal, though, the study has some flaws. For example, the data doesn’t account for ongoing home maintenance costs, nor does it consider real estate tax bills and insurance policies.
But, combining a relatively low cost of ownership with the government’s $8,000 tax credit for first-time home buyers is likely to convert long-time renters into never-before homeowners.
This, too, is thought to be a key element of the housing recovery.
In many markets (but not all), home prices are expected to edge lower through 2009. Provided mortgage rates stay low, the cost gap between owning and renting will shrink even more.
Image courtesy: Wall Street JournalContent source: BringTheBlog
City Survey- Opine About Downtown’s Future
January 9, 2009 | Leave a Comment
YOU have a voice
Whether you work, live or just love the downtown district of Austin, the city is asking everyone to take their Downtown Austin Form and Character Districts Survey. It’s pretty quick to do and their goal is to better define downtown Austin districts and the priorities of each district as part of the Downtown Austin Plan.
The city of Austin regrouped a few years back and studied various metropolitan areas around the globe and settled on modeling the future on Vancouver (which also has a main waterway through the city). Because Austin is focused on growth (whether they like it or not, our population continues to swell), it is important that we all get as involved as possible and if a survey is your maximum capacity, so be it but please at least take a moment to click a few buttons.
Mortgage Rates Lower But Fees Don’t
January 8, 2009 | Leave a Comment
But wait, there’s help
With respect to mortgage rates, you can’t always believe what you read in the papers. Or what you see. A terrific example is this chart.
Published by Freddie Mac, it shows the 30-year fixed mortgage’s “going rate” as reported by the nation’s mortgage lenders. On December 30, 2008, that rate was 5.1%. But 5.1% is only half of the relevant information. There’s a mandated fee schedule that accompanies the Freddie Mac-reported rate survey.
Currently, the published fee required to get a 5.1 percent mortgage rates is 0.7% of the borrowed amount, or $700 per $100,000 borrowed. This fee is more commonly known as “points” and versus last year, it’s nearly doubled from 0.4 points.
So, yes, conforming mortgage rates are low and they have fallen near all-time lows but there’s more to the story than just the interest rate — there are the fees that go with them, too.
Mortgage rates and loan fees often move in opposite directions so to get lower rates, consider paying additional points. Conversely, to face fewer fees, accept a higher rate. It’s a trade-off and your REALTOR can work with you to help you best understand the choices.
(courtesy: The Wall Street Journal, bring the blog)
10 Mistakes Sellers Make
January 2, 2009 | Leave a Comment
Selling Your Austin Home?
There are ten mistakes that are super easy to avoid, so take a few minutes to watch the video above and you’ll be well on your way to the best home sale experience possible. We’re happy to walk through your home with you and help you implement these steps and tailor a plan with you.
Austin Wi-Fi Hotspots- Free
December 15, 2008 | Leave a Comment
We’re Wired!
Austin is the most wired city in the nation and we’ve got the hotspots to prove it! When you’re moving from out of town, it’s a great idea to see if there is a wi-fi spot near where you’re moving because it’s fun to use the ol’ laptop at home, but it’s even more fun to take the laptop to the local coffeehouse or hotspot, grab a cup of joe and meet others from your neighborhood (or around the city).
The Austin Wireless City Project website shows participating hot spots and the reliability of the free connection, how many users are currently live and the address of each spot. This is helpful during cable/internet outages, for meeting other wi-fi coffee drinkers and for learning new parts of the city with your laptop in hand!
Austin Tree Lightings & Outdoor Ice Skating
November 26, 2008 | 1 Comment
Whole Foods Roof Skating
Whole Foods Downtown will open “Skating on the Plaza,” its annual rooftop ice-skating rink, this Friday. The outdoor rink will operate between 10am and 9pm on most days through January 11th. Tickets for all ages include skate rentals and are $10 (purchase them at Guest Services up to an hour before each session). There are 11 daily 50-minute skating sessions starting on the hour. More information is available via their hotline at (512) 542-2260.
Austin Tree Lightings
Sunday December 7th, the lighting ceremony for the Zilker Tree (aka the Moontower) will begin at 6pm and is free to the public. Each year, there are performers, carolers and often our favorite mayor, Will Wynn. We suggest getting there early (map is here) for parking and enjoying carolers and vendors selling sweets. We go every year and bring home made hot chocolate and our dog, it’s great fun to spin under the tree and get barfy!
The Zilker Tree is 155 feet tall and is composed of 39 streamers, each holding 81 multicolored, 25 watt bulbs, totaling 3,309 lights. At the top of the tree, a double star measures 10 feet from point to point and displays 150 frosted bulbs. At its circumference, the tree measures 380 feet and the diameter is 120 feet. The tree will illuminate Austin’s skyline until New Year’s Eve, December 31st.
Saturday, December 6th will be the lighting of the big huge tree in front of Macy’s at the Domain (map is here) and guess what? Jordin Sparks will be performing and there will be fireworks, how cool is that!?! It starts at 6pm but we’ll probably show up early to do some shopping and get a hot Starbuck’s (or an amazing drinking chocolate at Vivo Chocolato) and to get parking behind Joe DiMaggio’s so we’re by an exit and won’t get in a clogged traffic line.
Austin Apartment Data
November 10, 2008 | 1 Comment
Remember Why Apartment Data is Important?
Earlier this year, we went over why Austin apartment rent data is important, remember? It’s “because the real estate market rises and falls on the merits of many many little tiny puzzle pieces that fit together to make a whole ranging from apartment rentals, home sales, industrial and commercial space to land.”
So How’s Austin Doing?
This piece of the real estate puzzle brings mixed news- occupancy rates have decreased from 94% in September 2007 to 90.3% in September 2008 while the trend of prices rising regardless of occupancy rates continues as the average monthly rent in Austin increased from $822 to $854, a 3.7 percent jump.
The increased number of new units that have come online this fall as well as some home sellers choosing to rent their homes and become landlords is changing the rental environment in Austin.
Austin Has the Scariest Haunted House in US
October 23, 2008 | Leave a Comment
Scared to DEATH!
Look, I am terrified of haunted houses but I’m still hard to impress. I tend to talk to the actors and ignore things jumping out at me, but we went to the Mansion of Terror and while my husband and young’n loved it and wanted to go again, I was the one who made everyone laugh because I screamed the ENTIRE time and actually RAN out of the haunted house. True story.
The Mansion of Terror returns for its 5th season and was rated America’s scariest Haunted House by Liongate Films. Admission includes two separately themed haunted houses in the same location and you will be terrified in the Slaughter Circus with a truly twisted take on an 1800s sideshow and circus complete with claustrophobic passageways and bloody screaming clowns, AND the second house Blood Frenzy which reminded me of a much much scarier version of the Saw movies (seriously).
This picture was taken after we finished- note my dilated pupils. This is no joke, people.
Hacked Up Body Parts
It’s not all just hacked up body part props, it’s also charitable… the Mansion of Terror owner Norm Glenn is a firm believer in giving back to the Austin community (through charities like the American Cancer Society), “there is no sense in running a business here in Austin if you can’t give back to the people who need it in our local community.” So go, get the pants scared off of you and help your community. The creepy clown said you have to, so go to the Mansion of Terror in North Austin.
Austin Retail Affects Residential Home Sales
October 22, 2008 | 1 Comment
Plopping Down Subdivisions
In Austin, the theory is that home builders go out to the suburbs where there are a bunch of ranches, buy some land and plop down subdivisions, creating mini-cities within the suburban cities. For example, in Pflugerville, the Blackhawk area consists of Villages at Hidden Lakes, Falcon Pointe, Avalon, the Meadows of Blackhawk, and the Fairways at Blackhawk. What used to be there before a bunch of houses? Ranches. There are even still some ranches between the subdivisions, horses and all.
In Come The Starbucks
After the houses are built, the theory is that commercial retail will soon follow as it is now attractive to open up shop where all these people now live and survive somehow without a Starbucks and a Target. In the Blackhawk area which is at Hwy 45 and 130, ground was broken last year on a Home Depot anchored retail center with a Target soon to open and there are two HEBs within two miles to service this surge of population to the area.
With the current economic issues (we’ll avoid the “R” word here), the homes are already built and are often waiting on the retailers to come swooping in, but will they? Lance Morris, president of the Weitzman Group’s local office, predicts that retail rents and occupancy rates will be flat through 2009.
“I think it’s going to be a year or two before we hear any new big-box store announcements,” he said.
So What About Home Sales?
What does that mean for residential home sales? Buyers often look around at retail before putting up their down payment- how far of a drive to the store is it? Is there nearby entertainment? Are hospitals nearby? Some home buyers are looking to get away from the hustle and bustle of the city while others are seeking to be outside of downtown Austin yet have the convenience of shopping nearby. Therefore, as retail remains stable, residential resale could experience the same trend- we’re not expecting prices to drop or raise substantially, nor are we anticipating the days on market to go down in this quarter.
Call it stable, flat or level, it doesn’t matter- the tidbit people miss in the above quote from Morris is that he doesn’t say the announcements are gone forever, but that it will be a year or two before the bounce. Buying now, knowing that future development is planned could mean equitable growth in your home’s value, making it an outstanding investment.
Austin Housing Starts Slow Down
October 17, 2008 | Leave a Comment
Austin Housing Starts Down
A recent study released by Residential Strategies and published in the Statesman reveals some predictable numbers about housing starts (how many new homes are starting to be built). It doesn’t take a psychic to assume that housing starts are down.
With the inventory of resale homes rising in Austin, new home builders are being forced to compete with home sellers. Other factors include credit tightening for consumers, some lenders requiring more money down as well as the perception of consumers that lending is impossible (which is untrue but reinforced by tv media), all leading to a small decrease in people buying houses nationally.
Also important to note is that the credit tightening isn’t just on consumers but also on commercial entities as well meaning that builders are finding lending to be less free flowing in current times as well.
To recap, here are three factors that led to decreased housing starts:
- Builders must compete with higher number of resale homes on the market.
- Credit is tightening for consumers.
- Credit is tightening for commercial entities.
The Silver Lining
In a market that is not in an upswing, builders have to be inventive in order to sell properties and buyers are in an awesome position for their agent to help negotiate free upgrades and city wide, you may see some prices cut as inventory has to be moved before the year closes out.
Does this mean builders are desperate? No. Are builders hurried to move inventory for cash purposes? Yes. Are builders confident in a market recovery? Yes, which is why subdivisions and starts are on hold and not canceled.
Austin Borrowers Get a Break
October 8, 2008 | Leave a Comment
Finally some good news for some Austin property owners:
NEW YORK (New York Times) – Countrywide Financial, in an effort to resolve lawsuits against it, has launched the largest program ever to help struggling homeowners in Texas and ten other states.
The lender, recently acquired by Bank of America, will provide a total of $8.7 billion to borrowers, $8.4 billion of which will be through direct loan relief that will affect about 400,000 people. Countrywide will also waive $79 million in late fees and $56 million in prepayment penalties, and suspend foreclosures on delinquent borrowers with the riskiest loans.
A foreclosure relief fund will be created with $150 million from Countrywide to help borrowers who are four or more months behind on their payments or whose homes have already been foreclosed on. The company will also provide $70 million to help troubled borrowers relocate to rental housing.
Additionally, Countrywide will reduce principal balances in some cases and cut interest rates in others.
To qualify, the borrower’s first payment must have been due between Jan. 1, 2004, and Dec. 31, 2007. The loan balance must be at least 75 percent of the current value of the home, and the borrower must be able to afford the adjusted monthly payments.
source: RECON
Austin Homebuyers Glad Dow is Under 10K?
October 7, 2008 | Leave a Comment
The First Time Since 2004
We’ve had calls of people in Austin that are nervous about what to do and not sure if the news is a good litmus test or not. Today, we’ll talk about the silver lining of the clouds:
Monday, the Dow Jones Industrial Average closed below the psychologically-important 10,000 level for the first time since 2004.
Despite the milestone-marker breach, however, there was a large group of Americans with reason to cheer. As stocks sold off, mortgage markets rallied to the benefit of home buyers everywhere.
Good News
Conforming mortgages rates improved yesterday.
Most interesting here is that rates improved for the same reason that the stock market fell. Because of lingering concerns about the worlds’ economies, investors lost their collective appetite for risk Monday. In response, they sold their stock positions and parked the proceeds in the “safe haven” of U.S. government-backed debt.
The extra demand for safe investments pushed up the prices on mortgage bond which, in turn, pushed down mortgage bond rates.
Money Flow
A vault may be the only safer place to park money than U.S. government-backed debt. Now, we can’t predict when the market’s risk appetite will return, but when it does, expect money to flow into stocks just as quickly as it left.
All year long, with respect to stock markets, it’s been either “everybody in” or “everybody out” and, for now, it’s everybody out. This is why mortgage rates fell Monday.
But, when the momentum shifts — and it will shift — mortgage rate shoppers would do well to be prepared. Be ready to lock that mortgage rate because as soon as the stock market reverses course, mortgage rates will head higher.
If stocks recover as quickly as they tanked, expect mortgage rates to spike badly.
source: bring the blog
What If MY Mortgage Lender Fails?
October 1, 2008 | Leave a Comment
Are My Payments Still Due?
Thursday, federal regulators seized mortgage lender Washington Mutual. The Seattle-based thrift became the third “big name” lender to close its doors since July, joining IndyMac and Lehman Brothers.
In 2007, these 3 lenders represented about 10 percent of the mortgage market and their subsequent failures are confusing American homeowners.
The most prevalent question:
If my mortgage lender fails, are my payments still due?
And the answer is an unequivocal “yes”. If a mortgage lender is seized, goes bankrupt, or is otherwise closed, it doesn’t change the terms of the bank’s mortgages whatsoever — just maybe the mailing address.
But Why?
This is because a mortgage (and its corresponding note) is a legal contract between the lender and the lendee, signed on the date of closing. It is binding and cannot be altered by either party. The only way to “end” the contract is to pay the loan in full.
This can happen in one of 3 ways:
1. The home is sold and the mortgage is repaid
2. The home is refinanced and the mortgage is repaid
3. The home loan is paid down to $0 balance by the homeowners
So, if a mortgage company fails, its doesn’t cause the loan to be paid-off and, therefore, the mortgage contracts is still valid. Payments are still due.
However, because its mortgages are an asset, the failed lender will usually transfer them to a new lender’s servicing department. This means that homeowners will write the same check for the same mortgage but to a different company.
Reducing Confusion
To reduce confusion around transactions like this, the government puts two safeguards in place. First, it requires the former lender to send a 15-day advance notice of the change to the homeowner. And second, it requires the new lender to do the same.
In situations like this, the onus is ultimately on the homeowner to open and read his mail, and make changes accordingly. It’s especially important for people who pay their bills online as opposed by paying them manually; you likely won’t get notified if you’re sending payments to the wrong place.
Source: Bring The Blog
Round Rock Named 7th Best Place in US
September 27, 2008 | Leave a Comment
Round Rock in Top Ten
According to CNNMoney.com’s “Best Places to Live 2008,” Round Rock ranks 7th in the nation among small cities in which to live, the only city in Texas to win a mention. Round Rock is appealing on many levels from affordable housing, the Round Rock Independent School District, booming retail and commercial real estate, a new Tollway which goes directly into Austin, and Dell’s Headquarters in the city. Round Rock is home to a branch of Texas State University, the Round Rock Express baseball team, the awesome IKEA and Prime Outlets.
The median home price is $193,931, job growth has risen just over 45 percent between 2000 and 2007, and family purchasing power is at $101,381. Take a peek at the available homes in Round Rock by clicking here and on the left, search for Round Rock’s primary zip code “78664″ and click around to see houses for sale and their pictures!
Austin Lending, Zero Down & Home Buyers
September 25, 2008 | Leave a Comment
The lending world is changing
As you may or may not have noticed, the credit market is in trouble- as we speak, lending guidelines are changing by the minute, depending on the loan program. But never fear; when it all boils down, what you’re left with is this simple truth- lenders lend.
What you should know
The days of zero down home loans isn’t over completely, there are still down payment assistance programs available, but timing is crucial. Depending on what you’re buying, you will need to pre-qualify now more than ever before you even begin the process of serious home searching.
The state and local governments still have grants available and have increased the income guidelines right along with FHA increasing the loan limits on homes. This means that Austin home buyers still in the market for zero down loans can still buy, however, the money for grants is limited and can virtually vanish overnight. What we’ll need to do is get you pre-qualified and get your file in line for the grant. Our lenders will advise us on how to time your transaction. So with a little pre-planning, zero down is still a possibility. The alternative is that if you are going to go for a FHA or Conventional loan, you should be prepared to make a down payment- we can advise you of the amount at the time of your pre-qualification.
The Credit Score Facts
Under certain loan programs, we can still approve Austin home buyers up to certain limits with a 580 score or better. Anyone with less than a 620 FICO score may pay a slightly higher interest rate, but not always- absolutely no late payments over the past 12 months are being approved at this time even with letters of explanation, but we expect this to soften over the next few months. We’ll update you as situations in lending change.
This information pertains to Texas
The information we’re providing you here today is designed for buyers in the Austin and Texas markets and is not for the national audience. In your state, you should seek out council from your local Realtor or mortgage lender. If you need guidance, please feel free to call me, I’m happy to refer you out- I personally know lenders and fantastic agents all over the country that will be happy to help you in your market.
Closing dates
This one is a real pain in the rear and bugs us more than the lending guidelines changing, and the reason is that the anxiety a home buyer faces trying to get to closing can really be stressful for all parties. What we’re telling our home buyers is that all dates are soft but only to a point. Our Austin lenders are professionals from start to finish and know how to lean on the process as well as when they shouldn’t. When applying for large sums of money, we have to remember that the underwriter really needs to do their due diligence and we’re seeing closing dates exceeding 30 to 45 days. We’ve not seen anything residential take more than 60 days unless the file was really complicated which is a small percentage of transactions for our lenders- like I said, we work with the finest in the country.
Going it alone
I must warn all home buyers working this alone or home sellers selling on their own and working with unrepresented buyers. Beware. Do your homework, study everything you’re signing, and proceed cautiously when anyone is selling you anything simple about the complex market we’re in right now. Rent-to-own home products are popping up all over in place of mortgages in an effort to bypass lending as well as loan products that prey on the unsuspecting. Please take great care in going it alone- the sharks are out in full force.
A note to Austin home sellers
Sellers are asking nearly every day if the credit market will create buyer problems and the answer is yes and no. Obviously, lending is a little more complicated, but the buyers in our market today are well qualified and cooperation with these buyers is a must, as with less lending packages creating incentive to buy for all buyers, there are a few less buyers in the Austin market. So, all offers should be considered seriously.
In Conclusion- should I buy now?
If I were in the market for a home right now in Austin, I would buy a home. Interest rates are down again, FHA fee reductions and retooling, home prices are steady, price reductions by motivated sellers are abundant- the Austin market seems calm and cool waiting on the rest of the country to figure things out.
We’re always ready to help you navigate Austin’s real estate market, with a no pressure policy, a friendly support team, and great Austin mortgage lenders- you’re in great hands.
Mortgage Payback Periods Comparison
September 24, 2008 | Leave a Comment
15- 20- & 30-Year Mortgages
On all principal + interest home loans, the first few years of payments include a lot more money going to interest than to principal.
This is because mortgage repayment schedules are front-loaded with interest, meaning large-volume principal reduction won’t occur until late in the mortgage’s lifecycle.
Comparing products at a 6% mortgage rate, did you know that after 15 years:
* A 15-year mortgage will be paid in full
* A 20-year mortgage will have 41.21% of its loan balance remaining
* A 30-year mortgage will have 73.19% of its loan balance remaining
Of course, this doesn’t mean that 15-year mortgages are better than their 20-year or 30-year brethren. It just means that 15-year mortgages pay off faster.
Yet, there are reasons for homeowners to avoid 15-year mortgages.
For example, versus 20-year or 30-year products, 15-year mortgages require the highest monthly payment because the payback period is compressed to a shorter time. In addition, mortgage interest tax deductions to which most homeowners are entitled are reduced.
So, just because the 15-year pays off quickly doesn’t mean that it’s best for everyone.
Source: Bring The Blog
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