Mortgage Rates Inch Lower
NEW YORK – Mortgage rates remained below the 5% mark, with the benchmark conforming 30-year fixed mortgage rate inching lower to 4.95%, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.37 discount and origination points.
The average 15-year fixed mortgage stepped down to 4.14%, and the larger jumbo 30-year fixed rate reset the low point of the year at 5.40%. Adjustable rate mortgages were also lower, with the average 5-year ARM dipping to 3.69% and the 7-year ARM dropping to an even 4%.
Mortgage rates were lower this week, but the movement in mortgage rates continues to be tame. Mortgage rates have remained within a one-third percentage point band since mid-December. The Federal Reserve did little to rock the boat, holding interest rates steady and changing very little in the post-meeting statement.
Fed Chairman Ben Bernanke’s initial press release was a historic event, but uneventful. While the Federal Reserve confirmed that they will halt their bond purchases at the end of June, this has been widely expected and any resulting volatility in bond yields or mortgage rates is far from certain. Mortgage rates are closely related to yields on long-term government bonds.
The last time mortgage rates were above 6% was Nov. 2008. At the time, the average 30-year fixed rate was 6.33%, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.95%, the monthly payment for the same size loan would be $1,067.54, a difference of $174 per month for anyone refinancing now.
Read more: http://www.houselogic.com
Have the tax credits been extended for 2011?
On December 17, 2010, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This law extends the tax credits for energy efficiency into 2011, BUT at lower levels. The levels revert back to those in effect in 2006 and 2007, which were 10% of the cost of the improvement, up to $500, with a $200 max for windows, and several other set maximums.
Highlights:
- $500 lifetime limit. If you got over $500 in these tax credits from 2006 – 2010, you are not eligible for anything more.
- 10% up to $500 for insulation, roofs, and doors.
- Windows capped at $200, but qualification now ENERGY STAR
- Furnace and boilers capped at $150, and all furnaces and boilers must meet 95 AFUE
- $50 for advanced main air circulating fan
- $300 for air conditioners, air source heat pumps, water heaters, and biomass stoves
Tax Form:
For products “placed in service” in 2011, you need to file the 2011 IRS Form 5695 and submit it with your 2011 taxes (by April 15, 2012).
On the 1040 form the residential energy tax credit (from Form 5695) is claimed on line 52.
What you need to submit and save:
Save your receipts and the Manufacturer’s Certification Statement for your records. Submit Form 5695 with your taxes.
Rental rates climb as sale prices dip
HotPads: Demand for ‘low-risk’ housing rises
By Inman News, Tuesday, April 26, 2011.
Inman News
Rental listing prices nationwide jumped 7.4 percent in the last year while for-sale listing prices dropped 8.8 percent, according to a report from property search site HotPads.
The report is based on listings active on HotPads in April 2010 and April 2011. First-quarter data shows a reversal of the broader trend — rental prices fell 1.8 percent and sale price rose 3.5 percent — but the report emphasized that the first-quarter trend is likely attributed to seasonal patterns in the real estate housing market.
“We predict investors looking to ride the rental upswing will continue renting properties and will wait for home values to appreciate,” the report said.
“Increasing demand for rental properties is an indicator of a growing preference for low-risk housing options, which is closely linked to the broader economic uncertainty.”
Since April 2010, the national median list price of for-sale homes has dropped in every month except for March 2011 and April 2011.
The median rental listing price is more uneven month-to-month, but has shown a clear upward trend in the past year.
9 Unexpected Energy (and Money) Savers
Here are a few surprising and simple ways to cut your energy bill in your San Diego home this season. Give your pocketbook and Mother Nature a gift this season by taking advantage of these simple, surprising ways to save energy and money.
Put lamps in the corners: Did you know you can switch to a lower wattage bulb in a lamp or lower its dimmer switch and not lose a noticeable amount of light? It’s all about placement. When a lamp is placed in a corner, the light reflects off the adjoining walls, which makes the room lighter and brighter.
Switch to a laptop: If you’re reading this article on a laptop, you’re using 1/3 less energy than if you’re reading this on a desktop.
Choose an LCD TV: If you’re among those considering a flat-screen upgrade from your conventional, CRT TV, choose an LCD screen for the biggest energy save.
Give your water heater a blanket: Just like you pile on extra layers in the winter, your hot water heater can use some extra insulation too. A fiberglass insulation blanket is a simple addition that can cut heat loss and save 4% to 9% on the average water-heating bill.
Turn off the burner before you’re done cooking: When you turn off an electric burner, it doesn’t cool off immediately. Use that to your advantage by turning it off early and using the residual heat to finish up your dish.
Add motion sensors: You might be diligent about shutting off unnecessary lights, but your kids? Not so much. Adding motion sensors to playrooms and bedrooms cost only $15 to $50 per light, and ensures you don’t pay for energy that you’re not using.
Spin laundry faster: The faster your washing machine can spin excess water out of your laundry, the less you’ll need to use your dryer. Many newer washers spin clothes so effectively, they cut drying time and energy consumption in half – which results in an equal drop in your dryer’s energy bill.
Use an ice tray: Stop using your automatic icemaker. It increases your fridge’s energy consumption by 14% to 20%. Ice trays, on the other hand, don’t increase your energy costs one iota.
Use the dishwasher: If you think doing your dishes by hand is greener than powering up the dishwasher, you’re wrong. Dishwashers use about 1/3 as much hot water and relieve that much strain from your energy-taxing water heater. Added bonus: you don’t have to wash any dishes.
Window of Opportunity Has Opened
You may have heard that San Diego home loan rates improved, reaching some of the best levels so far in 2011. In fact, now is the best time in over a decade to take advantage of this wonderful situation. The San Diego real estate inventory levels are at a favorable level, making it easier to get into a home.
But there’s one important point you should understand…
The slowing in our economy is one of the main reasons rates have improved recently, but it’s important to note that the last time rates hit this level, they jumped significantly higher from here. What’s more, signs of inflation are beginning to creep into our economy, and that never bodes well for home loan rates. If you have thinking about buying San Diego real estate, now is a great time to jump in.
Getting preapproved for a San Diego home loan is easy and only takes a few minutes. Applying for a San Diego home loan doesn’t cost anything and is a good way to assess what you qualify for and if you are comfortable with the monthly payment. In may cases, people are pleasantly surprised at how affordable San Diego homes are in todays market. Being that it is still early in the year, there are still money available for San Diego first time home buyer programs which can help with down payment and/or closing costs, which can reduce out of pocket expenses significantly.
Contact Travis Breton to find out more about buying San Diego real estate or to get connected with a reputable San Diego home loans specialist.
The Traditions in La Costa
The Traditions in La Costa is a small community of just 12 homes located off of Levante and La Costa Ave. This community (also known as Tradicions La Costa) of La Costa homes is built by Carlsbad new homes builder, Hallmark Communities. The Traditions La Costa homes features four inspiring two story designs offering elegant appointments, innovative design and building materials that truly distinguish these homes from everyone else. These La Costa homes for sale range in size from 2770-3339sf with floorplans up to 6 bedrooms and 3.5 baths.
Residents of these La Costa homes enjoy the advantage of the private neighborhood ambiance all in a spectacular location inside the San Dieguito and Encinitas School Districts. Many of the 12 homesites offer views of the La Costa hills and even ocean views. The Traditions in La Costa also offers many special features such as, interior courtyards, front porches, second story lofts and some with additional separate living quarters.
These homes for sale in La Costa Carlsbad have no Mello-Roos fees and a low HOA fee of just $162 per month.
Sellers: 5 Questions to Ask When Reviewing an Offer
You made the decision to list your home with a San Diego REALTOR®. You worked hard to get the house in tip-top shape, the curb appeal shines, and you’ve priced it well.
Some might say that’s the easy part. When an offer comes in, your San Diego real estate agent will review it with you. It’s important that you read and understand all of its terms – not just the purchase price. Here are five things to keep in mind when reviewing offers to help you choose the one that’s best for you.
1. What contingencies are involved? A contingency is something that has to happen before the contract is fully enforceable against the buyer and seller. If a contingency is not met, the party benefited by that contingency can walk away. Common examples include the buyer seeking a mortgage loan to purchase the home; selling the buyer’s current home; conducting inspections; and in a short sale, approval of the seller’s lender.
2. What’s the bottom line? Can you afford to cover everything the buyer is asking for? Your San Diego real estate agent can provide you with a “net sheet” that takes all of the financial terms – such as requests for closing costs and repairs – and calculates what the net proceeds will be, based on the offer price. This is especially important for owners who are short selling their homes.
3. What timeframes are involved? Be available for your San Diego real estate agent to present offers. Every offer has an expiration date, and it’s important to meet that expiration date or get an extension if you need more time to review the offer. When is the buyer proposing to close escrow? How long is the buyer asking for due diligence? The purchase agreement will have a “time is of the essence” clause, so it’s important to pay attention to all contractual deadlines.
4. What is most important? This is a question that only you as the seller can answer. If maximizing proceeds is most important, you’re more likely to stand firm on your financial terms, whereas if a quick closing date is most important, then you may be willing to compromise in other areas.
5. What are my options? The seller always has the right to accept, reject or counter every offer that’s made on the property. Selling a home can be a very emotional time for a homeowner. It’s important to stay flexible, look at it as the business transaction it is, and for each provision in the offer decide whether it’s a deal breaker or if you’d be willing to compromise. Working through the offer with your San Diego real estate agent, decide what course is best for you.
Looking to buy or sell San Diego real estate? Contact Travis Breton at 760-470-2752 or visit http://sdhome source.com
Why it’s still beneficial to own your own home
For decades, homeownership has been a key part of the American dream. Recently, however, some media outlets, academics and others have questioned this notion. However, here are some reasons why homeownership is still valuable:
Homeownership strengthens communities. Homeowners generally stay in their homes longer than renters. This helps prevent crime, fosters a better school system and generally makes for more secure, established and attractive neighborhoods.
Financially, owning a home is one of the best ways to build long-term wealth, by building equity in your home and allowing you to deduct mortgage interest on your federal income taxes. Some homeowners even consider their home a forced savings account.
Renting can cost less in the short term. But like the cost of most things, rental rates generally increase over time, with typical increases of about 7 percent per year. For homeowners with a fixed-rate mortgage, their monthly payment will be fixed for the life of the loan.
All real estate is local. With local home prices and mortgage interest rates at historically low levels today, even those who advocate renting acknowledge that Southern California is one of the places where you now have a strong financial incentive to buy a home – even without a tax credit.
That being said, owning a home is a responsibility. It’s not for everyone.
If you’re thinking about buying San Diego real estate, contact Travis Breton with Summit Realty Group at 760-470-2752 or visit http://sdhomesource.com to help you evaluate your options.
A Little Guidance for Your Home Search
Whether you’re a first time buyer, buying up, or downsizing, buying a home in San Diego CA can seem a little stressful at times. Here are a few tips to help keep you on the right track to getting the right house with minimal stress.
Always research before you look, like you’re most likely doing right now. Decide what features you most want to have in your San Diego home, what neighborhoods you prefer, and how much you’d be willing to spend each month for housing.
Get your finances in order. Review your credit report and be sure you have enough money to cover your down payment and closing costs. Then, talk to a lender and get pre-qualified for a mortgage. This will save you the heartache later of falling in love with a house you can’t afford or are not prepared to make an offer on.
Be realistic. It’s OK to be picky, but don’t be unrealistic with your expectations. There’s no such thing as a perfect home. Use your list of priorities as a guide to evaluate each property.
Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion, but be ready to make the final decision on your own.
Decide your moving timeline. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area? All of these factors will help you determine when you should move.
Think long term. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in this home for a longer period? This decision may dictate what type of San Diego home you’ll buy as well as the type of mortgage terms that will best suit you.
Insist on a home inspection from a qualified professional. If possible, get a warranty from the seller to cover defects for one year.
Get help from a REALTOR®. Hire a San Diego real estate professional who specializes in buyer representation. Unlike the listing agent, whose first duty is to the seller, a buyer’s representative is working only for you. As a buyer’s representative, I do not charge my home buyers any fees or commissions for my services. For more information about buying or selling San Diego real estate contact Travis Breton at 760-470-2752 or visit http://sdhomesource.com
Small Projects Have Big Impact When Selling
It’s a buyer’s market, and even small things can set your San Diego house apart from the competition. The problem is, over time, homeowners no longer see small projects like fixing a hinge on a seldom-used cabinet door or cleaning scuff marks off the back door.
But in a home buyers eyes, those little projects put questions in their minds, not only, “how much will these repairs cost?” but also, “if the little things aren’t done, are there big things that haven’t been done as well?”
A clean and clutter-free San Diego home is a great start. But it’s important to take a more critical eye to your home before listing it for sale. If you can afford it, have a pre-listing home inspection to identify problems ahead of time. Fix the problems that you are able to, and be prepared to disclose and/or negotiate the ones you can’t fix up front. Here are five areas where a small fix can make a big impact on how a buyer sees your San Diego home.
Heating and cooling is a critical component to San Diego homes and one of the most costly repairs to make on a home. A heating and cooling system that appears to poorly maintained can raise concerns with potential San Diego home buyers. Be sure to replace the furnace filters to ensure optimal air flow to the HVAC system. Clean all the air vents and ceiling fan blades.
Electrical. Replace any burned out light bulbs in all fixtures inside and outside. Replace cracked or missing outlet covers and switch plate covers. These are simple, inexpensive items that improve the overall appearance of any home for sale in San Diego.
Walls and windows. Repair and touch up dings, scratches and holes in the walls, even small holes from picture hangers. Clean scuff marks off base boards, walls and doors. Clean the windows and vacuum the window tracks inside and outside to get rid of debris.
Flooring is an item that every San Diego home buyer immediately notices. Shampoo the carpet if it is still in good condition. Where possible, replace broken floor tiles or boards. If the carpet is looking worn or stained, get estimates to replace it so you will be armed with information if the buyer tries to negotiate a concession.
With all the recent news and health concerns about mold, it is important to have the plumbing in tip top condition. Fix any leaky faucets or pipes. Besides being clean, bathroom fixtures should function properly. Check the faucets for water flow and temperature. Make sure the toilets flush properly and don’t “run.”
Finally, if you started home improvement projects that you haven’t quite finished, finish it! Not only will it be one less thing on your to-do list, it could improve your chances of standing out to potential San Diego home buyers.
Looking to buy or sell San Diego real estate? Contact Travis Breton at 760-470-2752 or visit http://sdhomesource.com
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