Daily Archives: August 20, 2014

New signs the housing market is approaching normal? | Bedford Hills Real Estate

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More fresh reads on housing this week as an industry group reported applications for home mortgages rose last week — driven by refinancing demand — and home improvement retailer Lowe’s came out with second quarter earnings, lowering its outlook on sales for the year.

Yahoo Finance Editor-in-Chief Aaron Task in the video above points to a “dichotomy in the housing market” as evidenced by the data from the Mortgage Bankers Association, which showed a seasonally adjusted index of refinancing applications up 2.7% last week but a gauge of applications for home purchases falling 0.4%. The MBA points out a recent interest rate drop pushed mortgage rates lower.

In addition, with Lowe’s (LOW) reducing its sales forecast just a day after rival Home Depot reported better-than-expected earnings and raised its guidance, Task says there’s “something for bulls and bears alike” in the data. Task contends the difference between Lowe’s and Home Depot’s (HD) performance is likely retailer-specific versus reflective of the housing sector.

The bulls are also bolstered by data out Monday showing new home construction rose sharply in July to its highest level in eight months. The Commerce Department reported housing starts rose 15.7% to 1.09 million homes, beating expectations for 963,000.

 

 

 

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http://finance.yahoo.com/news/from-lowe-s-lowering-forecasts-to-the-uptick-in-refis–why-the-housing-market-is-approaching-normal-144631941.html

Cool sophistication with DIY touches as hip as they are budget friendly | Bedford NY Homes

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You would be hard-pressed to find another color combo quite as effortlessly cool as black and white. Black and white decor, whether in the form of a graphic wallpaper pattern, black and white photography, or something else, can add elegance in an instant. From DIY art and wall treatments to furniture makeovers, these 14 project ideas have chic black and white style and won’t break the bank.

Contemporary Entry by JWS Interiors
JWS Interiors
1. Patterned nook. A small nook, like this entryway, is a great place to experiment with pattern, because it requires only a small amount of wallpaper, decals or stenciling to have a big effect. And if you stencil, graphic black and white is a foolproof choice.

2. Abstract art. A few loose swirls of black paint on white paper? You can do that! Place your creation in a slim white frame and hang it with pride.

Farmhouse Entry by Magnolia Homes
Magnolia Homes
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3. Typographic art. Pick a quote that has meaning for you and turn it into art in a snap by stamping, painting or simply printing out the words. Place your creation in a rustic wooden frame for a handmade look.
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http://www.houzz.com/ideabooks/30405664?utm_source=Houzz&utm_campaign=u614&utm_medium=email&utm_content=gallery9

How hard is it to get a mortgage? | Bedford Corners Real Estate

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Is it really that hard? Yes. And no. And mostly yes again. And maybe it should be.

And since January 10 when the CFPB’s Qualified Mortgage rule took effect, it is definitely harder. So yes.

But there’s more to the story than that, and it doesn’t mean only Patsy Pays Perfect can qualify anymore.

The Qualified Mortgage rule has definitely put the squeeze on would-be homebuyers seeking a mortgage. People with lower income, the self-employed, those with credit scores on the margin, and people whose income comes from tips, bonuses or other harder to document sources are definitely being are all facing an uphill battle.

Industry analysts say that anywhere from 10% on the low side to 20% on the high side of people who have a mortgage now would not qualify for a mortgage under today’s rules.

But the rules and standards for getting a mortgage were already tightening long before the CFPB put their screws to it. In fact, the industry had largely self-corrected – as if it had a choice – long before Washington put it in ink with heightened documentation and tighter standards.

Mortgage applications, the first step in the mortgage process, have been down this year almost consistently.

 

 

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http://www.housingwire.com/blogs/1-rewired/post/31082-how-hard-is-it-to-get-a-mortgage

 

Good news for the housing market? | Pound Ridge Real Estate

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Home Depot (HD) recorded strong second-quarter earnings on the same day the U.S. Census Bureau and the Department of Housing and Urban Development reported multifamily housing starts soaring. Per Forbes:

Home Depot reported $23.8 billion in second quarter revenue, a 5.7% increase over the year-ago quarter and a figure that cleared the $23.5 billion Wall Street consensus.

“In the second quarter, our spring seasonal business rebounded, and we saw strong performance in the core of the store and across all of our geographies,” Frank Blake, Home Depot chairman and CEO, said in a statement Tuesday morning. 

And as a result, homebuilder stocks on the HW 30, HousingWire’s exclusive list of mortgage related stocks, were up on the news Tuesday.

 

 

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Good news for the housing market?

 

 

Millennials better at paying their mortgages | Chappaqua Real Estate

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The youngest group of mortgage borrowers posted the lowest mortgage delinquency rate, falling to 2.34% at the end of the second quarter, according to a new report from TransUnion.

“Mortgage delinquency rates continue to drop and we are seeing this decline across all age groups,” said Steve Chaouki, head of financial services for TransUnion.

However, it is important to note that this age group also makes up the smallest portion of mortgage accounts, only representing 4.16%.

(source TransUnion: click for larger image)

millennial

Overall, the mortgage delinquency rate declined for the 10th consecutive quarter, decreasing to 3.46% at the end of Q2 2014. This is down nearly 20% in the last year.

“Overall, the improvements in the mortgage delinquency rate can be attributed to a number of factors. These include the clearing of severely delinquent accounts through foreclosure as well as a lower rate of new delinquencies from post-recession vintages, which generally are of significantly higher credit quality and have experienced much better performance than mortgages originated before the recession,” Chaouki said.

 

 

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Millennials better at paying their mortgages

Auf Wiedersehen German real estate? Not so fast | North Salem Real Estate

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As soon as someone mutters the words London property, the word “bubble” is never far away.

London house prices displayed a jaw-dropping 20 percent growth year-on-year in July– even though last week’s RICS indicator showed that the housing market is pausing for breath. Bank of England (BoE) Governor Mark Carney has sounded a warning on tougher mortgage rates and the expectation of higher rates.

But London isn’t the only place which is seeing a dizzying increase in property prices. Look no further than across the channel – to the euro zone’s economic powerhouse – Germany.

Major cities like Frankfurt, the financial capital, Munich with its famous beer gardens and proximity to the Alps and Stuttgart, the home of Mercedes and Porsche, are becoming increasingly attractive as a place to live and work. Germans from rural settings and immigrants are flocking to the cities.

But like in London, an equally potent driver of the property market in Germany is the good old “search for yield”.

 

 

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http://www.cnbc.com/id/101926645?__source=yahoo%7Cfinance%7Cheadline%7Cheadline%7Cstory&par=yahoo&doc=101926645#.

 

How Does a Reverse Mortgage Work | Mt Kisco Real Estate

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A reverse mortgage is a loan that is available for senior homeowners age 62 and older that allows them to access a portion of their home’s equity. The loan generally does not become due until the last surviving homeowner permanently moves out of the property or passes away. The funds from a reverse mortgage loan can be used however the borrower chooses.

The U.S Department of Housing and Urban Development states that reverse mortgage loans “are a special type of home loan that lets a homeowner convert the equity in his/her home into cash. They can give older Americans greater financial security to supplement social security, meet unexpected medical expenses, make home improvements, and more.” Because the Federal Housing Administration (FHA) insures the loan, the property must meet specific FHA standards. The borrower must also continue paying required property taxes, homeowner’s and flood insurance and maintain the home according to FHA requirements. It is also a requirement of the loan to meet with a HUD approved reverse mortgage loan counselor. During this meeting, the counselor will explain the benefits and risks of the loan, the borrower’s expectations and answer any questions the borrower may have.

Eligibility
• The youngest borrower on title must be at least 62 years old
• The home must be owned free and clear or must be paid off with funds from the reverse mortgage loan
• Generally there are no credit score requirements
• Borrower(s) must meet financial eligibility criteria as established by HUD

Obligations of a Reverse Mortgage Loan
• At least one homeowner must live in the home as their primary residence
• Maintain the home in accordance with FHA requirements
• Continue to pay property taxes and homeowner’s insurance

Repaying the Loan
• In the event of death or in the event that the home ceases to be the primary residence for more than 12 months, the homeowner’s estate or heirs can choose to repay the reverse mortgage loan or sell the home
• If the equity in the home is higher than the balance of the loan, the remaining equity belongs to the estate
• If the sale of the home is not enough to pay off the reverse mortgage loan, the heirs will not be responsible for the difference
• No other assets are affected by a reverse mortgage loan. For example, investments, second homes, cars, and other valuable possessions cannot be taken from the estate to pay off the reverse mortgage loan

Loan Limits
The amount available for a Reverse Mortgage loan depends on:
• Age
• Current interest rates
• The lesser of the home’s appraised value, or sale price up to the maximum lending limit

Distribution of Proceeds from a Reverse Mortgage Loan
• Lump Sum- Receive a lump sum amount at closing (only available for fixed-rate loans)
• Tenure – equal monthly payments as long as the homeowner lives in the home
• Term – equal monthly payments for a fixed number of months
• Line of Credit – draw any amount at any time until the line of credit is exhausted
• Any combination of those listed above

AARP summarizes reverse mortgage loans on their website, “Before entering into a reverse mortgage agreement educate yourself, consult with trusted advisors and understand the pros and cons”. As with any major financial decision, it is highly encouraged that you discuss your current financial situation and goals with a financial advisor. For more information about how much you may receive, use our reverse mortgage calculator at the top of this page.

Numerous factors make homebuying advantageous for the rest of this year | South Salem Homes

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1. Home prices are still off their highs

Yes, home prices are rising from the lows seen during the housing crash of 2008, but they’re still nearly 20 percent off their mid-2006 peak. According to the S&P/Case-Shiller Home Price Index, average U.S. home prices are currently at summer 2004 levels. In markets that are still recovering, first-time homebuyers could see significant appreciation over the next few years, if they buy now.

2. Interest rates are expected to keep rising

Interest rates are slowly climbing, and as the Federal Reserve concludes its economic stimulus plan, rates are expected to continue to rise. Some experts believe mortgage interest rates could hit 5 percent by the end of 2014 or the first quarter of 2015, according to Glink. And even a small bump in interest rates can mean a significant jump in your monthly note.

“If you’re offered a 4.2 percent interest rate on a $400,000 mortgage, for example, your monthly payment will be $1,961, and you’ll pay more than $300,000 in interest over the loan’s 30-year term,” Glink says. “If your interest rate were 4.9 percent, your monthly payment would jump to $2,115, and the total interest paid over the life of the loan would exceed $360,000.”

3. Rental rates are rising

There is always an argument to be made regarding whether to buy or rent. It’s all a matter of your particular situation – as well as the status of your local housing market. If you need to be mobile — prepared for job transfers or out-of-state promotions — or are continuing to search for “the perfect place,” renting is probably right for you.

However, if you would like to put down some roots, and rents are high in your hometown – it might be cheaper to buy.

 

 

 

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http://realestate.msn.com/blogs/post–5-reasons-to-buy-a-house-in-the-next-5-months

Vital insurance questions answered | Armonk Real Estate

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Winston Churchill once described the Soviet Union as “a riddle wrapped in a mystery inside an enigma.” The same might be said of insurance in its varied forms.

You know you should have a comprehensive, cost-effective network of coverage, but what you need and how much can be confusing. Here are answers to 15 of the most commonly asked questions about insurance:

1. What sorts of insurance do I need?

Most people need to be concerned with insuring four areas: their possessions, their life, their health and their finances.

2. When you’re talking about possessions, does that mean homeowners insurance is the most important?

Probably, because a house is likely to be the single biggest investment most of us make. The rule of thumb with homeowners insurance is not to skimp. If you can, pay extra for guaranteed-replacement coverage, which mandates that the insurer will replace your home if it is destroyed, regardless of the cost. If you instead specify a dollar amount of coverage, and it’s not enough, you could end up paying the difference.

3. Once I have guaranteed-replacement coverage for my home, I’m all set, right?

Well, it’s important to know what your homeowners insurance covers and what it doesn’t. For example, particularly pricey items such as big-screen televisions and fancy stereo equipment are often excluded from policies or, at the least, inadequately covered. The same goes for antiques, collectibles, expensive jewelry and furs. Ask for riders that specifically cover those items.

 

 

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http://money.msn.com/insurance/vital-insurance-questions-answered-wuorio.aspx