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What is the average down payment on a house? You will be surprised.

There's a range of home loan options available. The most important step is to talk a trusted bank, credit union or a mortgage broker to find out which loans option is offered to you. Remember, there's no one loan fits all solution, your loan will be customized to fix your situation.

On the other hand, there is zero down loan options offered by USDA and VA (Veterans Affairs) backed loans. Those seeking loans through USDA or VA must meet certain guidelines

There are also FHA loans with the minimum of 3.5% down. So what does that mean to those seeking a FHA loan? That means, the down payment on a FHA loan for $150,000 will be a minimum of $5,250, that is, 3.5%. In some cases, lenders are asking for 5% 10% and 20% down. Again, the most important step is to talk to a trusted professional

What do mortgage RATES have to do with “ME”?

What do mortgage RATES have to do with “ME”?

Forget the professionals, asks any homeowner how important it is to get a good interest rate, and they will be delighted to school you.  In 2007 the median interest rate was 6.4% on a 30 year fix. While that seem like a deal back in the day, let's do the math. Presently you can find the median interest rate around 4% on the same 30 year fix rate.  So, a home that cost $200.000 in 2007 at 6.4% interest cost the buyer $1250(not including taxes and insurance) a month. However, today a home that cost $200.000 at 4% interest will cost the buyer $954.00(not including taxes and insurance) a month

Therefore if we took $1,250.00 and subtract $954.00 it would = $296.00 So, what do mortgage rated have to do with you? It means money saved. Lower prices and lower rates, is the recipe to buy.

“Mortgage rates are rising. The rate on a 30-year fixed mortgage has increased to 4.07%, up from 3.85% on March 12. Fueling the increase: a jump in Treasury yields driven by signs the economy is picking up as well as worries the Federal Reserve won't take further steps to lower interest rates. While rising, rates remain below the 4.79% level from a year ago.”- Wall Street Journal

 http://blogs.wsj.com/economics/2012/03/22/vital-signs-climbing-mortgage-rates/

The one number to watch for a housing recovery

FORTUNE – Over the past few months, many economists have concluded that that the U.S. housing market has reached a turning point and is healing. This may sound hard to believe, since home prices have continued their downward trend. In 2011, prices fell by 4% following nearly a 30% decline since the property bubble paeked in June 2006. They ended the year at a 10-year low.

Indeed, prices aren't likely going to rise for a while. But this might not necessarily mean the housing market isn't on the mend. Perhaps we're looking at the recovery all wrong, says Paul Dales at Capital Economics. In a report to clients recently, the economist said higher prices won't be the sign that tells us there's a real recovery under way. Rather, the recent pick-up in sales is what we should pay attention to.

After all, prices tend to be a lagging indicator. It could take six months for any improvements to show in the market, if not longer.

"Even if the asking price is at the right level when the home is first listed, it may still take a few months to find a buyer and another month or so before the contract is closed," Dales wrote to clients last week. "The selling price that is registered at the end of this process therefore relates to the market conditions somewhat earlier."

Sales have risen recently, reaching a few milestones.

In 2011, existing home sales climbed to 4.26 million – higher than the 4.19 million sales in 2010. Needless to say, this is far below the market's peak of 7.1 million sales amid the housing boom in 2005. But it's worth noting that for the past two years, sales have crept up from the market's low of 4.1 million sales when the market collapsed in 2008. In particular, in the past six months, total homes sales have risen by 13% as borrowing costs for home mortgages continue to fall to record lows and investors making up the bulk of sales find opportunities in heavily discounted properties after foreclosures and short sales.

And a series of home sales data released later this week is expected to show that home purchases probably climbed in February to their highest level in nearly two years, according to forecasts in a Bloomberg survey. Sales of new and previously-owned properties combined are expected to rise to an annual rate of 4.93 million – the strongest since May 2010, and up from 4.89 million in January.

The evidence reminds us that perhaps we should change our expectations of what a housing recovery might look like, particularly following a crisis marked by record foreclosures and a financial crisis that sent the economy into one of the deepest recessions. The recovery we have been anticipating is defined more on the rate at which the glut of vacant properties comes off the market as opposed to any steady rise in prices, which some think won't happen for another few years.

The inventory of unsold homes has dwindled, falling in January to 6.1 month's worth of supply – its lowest level since March 2005. A supply of six months is generally considered ideal for a healthy housing market, but there continue to be several headwinds at play that could weigh down prices.

The most immediate threat is the $25 billion settlement that federal and state officials recently reached with five banks to end investigations into abusive foreclosures practices. The agreement, which had stalled pending foreclosures nationwide for more than a year, will probably add more properties into the market. Dales at Capital Economics estimates additional 3 million homeowners might succumb to foreclosure over the next few years.

And then there's the longer-term threat to prices, which some experts say could arise when the Federal Reserve raises interest rates later. The inevitable move could potentially make the cost of home purchases more expensive relative to stagnant incomes.

So if anyone is looking at prices for signs of a recovery, it's likely that they'll miss it.

Posted in: housing, Macro

Tree Pruning Dos and Don'ts

Tree Pruning Dos and Don'ts

Springtime brings forth yard maintenance, and you might be wondering if you should prune your landscape trees. It depends.

The stock market, the stock market!

Dear Readers

So where is the economy going? Your guess is as good as any expert; even they’re at a loss. As matter of opinion, if we are going to depend on the experts to answer the question, we could just as easily hurl a coin into the wind and scream heads! But how bad is fifty, fifty when you’re making a six figure salary? Who can argue? At any rate, due to the government’s bailed outs, stimulus kickbacks, rate cuts, financial aids and cash-for-clunkers program the market is looking pretty healthy for a change. I wouldn’t throw a party about it since we’re not quite back in Kansas and the wicked witch of the west is still riding around on her jet powered broom shouting “I’m going to get you my little pretty”. The question remains, will she get us? I suppose perhaps our governments thinks Victor Fleming film will end the same way in our economy, by pouring water on the old wicked witch call the great depression.

I guess time will reveal all things. But for now, call it what you like, BIG government, socialism or whatever comes to mind but you have to admit the market is showing at the least temporary improvement.

Kendrick Clark

The walking paint buckets

Dear Readers,

Is the world so in flame for pain that it will pay hundreds of dollars to a total stranger holding a needle and ink asking afflict me, afflict me? I’m asking? Has it dawn on anyone that those same self affecting pain lovers will one-day be your next Governors, Mayors and city officials? I can vision it now, the United States supreme courts Chief Justice swearing in the lizard man as our new President. Well are you prepared? Can it happen? Didn’t you notice you were being highly sedated every time you’ve allowed those walking paint buckets to entertain you and your family through the media? Yep! Prepped like an overdue pregnant woman waiting for a major C-section operation. Don’t worry though, you won’t feel a thing. I guess the next fad of blogging will be on each others backs. Literally!

Kendrick Clark

Bloggers Streets

Dear Readers,

There's nothing dazzling about my blog. I guess to be perfectly frank, when you’ve seen one you’ve seen them all. Of course that doesn’t change the great efforts of bloggers around the world waiting like a life sentence inmate lusting to victimize his fresh young cellmate. Be afraid; be very afraid, for everyone and their momma are fighting in the bloggers county streets. It’s total mayhem, even worst, there are no bloggers county cops, or bloggers national guards to bring order putting an end to the chaos. Ooo! Someone’s momma just got hammered. Anyhow, stay safe out there it’s total madness in the bloggers streets.

Kendrick Clark