Connect With Me
Search For Cabins
Join My Email
Listing Slideshow
My Listing Manager
Featured Listings
Featured Video
Search Blog
iPhone-iPad Enabled
My Information
Event Calendar
Categories
- Georgia Mountain Foreclosure reVIEWS
- Family reVIEWS
- Front Porch VIEWS
- Real Estate Made Simple
- Georgia Mountain Community reVIEWS
- Georgia Mountain Real Estate VIEWS
- Georgia Mountain Home Buyer's reVIEWS
- Georgia Mountain Home Seller's reVIEWS
- Realtor reVIEWS
- Georgia Mountain Got-To-Do reVIEWS
- Georgia Mountain Dining reVIEWS
- Professional Associate reVIEWS
- Georgia Mountain Cabin Rental reVIEWS
- Georgia Mountain Market reVIEWS
- Mortgage & Finance reVIEWS
- Georgia Mountain Sightseeing
- Georgia Mountain Slang
- Clients reVIEWS
- Georgia Mountain Golf & Resort reVIEWS
- Featured Listing reVIEWS
- Georgia Mountain Home Tips
- Outdoor Adventure reVIEWS
- Georgia Mountain Shopping reVIEWS
Blue Ridge Searches
Blairsville Searches
Ellijay Searches
Hiawassee Searches
Area Information
Porch Posts
Porch Library
RE Radio Today
NAR Message
Market Trends
Touch A Life!
While you may have heard that selling your home as a short sale can be a long, frustrating, and sometimes futile process, the tide may be turning as lenders have become increasingly more amenable to short sales. Many lenders, says real estate professional and educator Gee Dunsten, are viewing short sales in a more favorable light after suffering through failed loan modifications and countless foreclosures.
Before embarking on the short sale process, however, talk to a REALTOR® who is experienced in the area of distressed properties. Dunsten asks all his clients to start by completing the following questionnaire. One of the top reasons short sales fail is because the home seller never actually qualified for one in the first place. Answering the following questions accurately and thoroughly will determine whether your home is eligible for a short sale: Read the rest of this entry »
Subscribe to Blog Contact Me Search for Homes Daily List Alert
Consumer spending continues to rise nationwide, fueled by jobs growth and a rosier outlook for the U.S. economy. Unfortunately for mortgage rate shoppers int he North Georgia Mountains, it may also lead to higher mortgage rates later this week.
Thursday morning, the Census Bureau will release its U.S. Retail Sales data for December. The report is expected to show an 18th consecutive monthly increase, with analysts projecting sales volume higher by 0.4 percent from November. This would be double the increase from last month, which saw a 0.2 percent increase in Retail Sales.
The Retail Sales report tallies receipts collected by retail and food-service stores nationwide. When the sum of these receipts rise, it puts pressure on mortgage rates to do the same. The connection is straight-forward.
Subscribe to Blog Contact Me Search for Homes Daily List Alert
For buyers and refinancing households throughout Georgia, adjustable-rate mortgages are a relative bargain as compared to fixed-ones.
According to Freddie Mac’s weekly survey of more than 125 banks nationwide, Blue Ridge and Blairsville mortgage applicants electing for a conventional ARM over a conventional fixed-rate mortgage will save 105 basis points on their next mortgage rate.
“Conventional” loans are loans backed by Fannie Mae or Freddie Mac.
Today’s average, conventional 30-year fixed rate mortgage rate is 3.91% plus points and closing costs. The average rate for a comparable 5-year ARM is 2.86%, plus points and closing costs.
In other words, for every $100,000 borrowed, a conventional 5-year adjustable-rate mortgage will save you $58.15 per month, or $698 per year.
That’s a 12 percent savings just for choosing an ARM. Read the rest of this entry »
Subscribe to Blog Contact Me Search for Homes Daily List Alert
If you’re shopping for a mortgage rate, today may be a good day to lock one down. That’s because Friday morning, the Bureau of Labor Statistics will release its Non-Farm Payrolls report for August 2011.
The “jobs report” tends to have a big influence on mortgage bonds and mortgage rates in Hiawassee and Blairsville, GA.
The jobs report is a monthly issuance, providing sector-by-sector analysis of the U.S. workforce. It also report the national Unemployment Rate.
Wall Street expects the August Non-Farm Payrolls data to show 75,000 jobs created in August, down from 117,000 in July; and it expects that the Unemployment Rate will remain unchanged at 9.1%.
The jobs report’s connection to mortgage markets is straight-forward — as jobs go, so goes the economy. This is because when the number of working Americans rises :
- Consumer spending gets a boost
- Government tax collection gets a boost
- Household savings gets a boost
These are each good turns in a recovering economy.
For today’s rate shoppers and home buyers, though, it won’t be the actual number of jobs created that matter as much as how close that jobs figure is to Wall Street’s expectations. If the number of jobs created exceeds the 75,000 estimate, look for mortgage rates to rise.
Conversely, if job creation falls short of 75,000 in August, mortgage rates are expected to rise.
Home affordability remains at all-time lows and mortgage rates do, too. If you’ve been wondering whether now is the right time to lock a rate, you can remove some risk by locking ahead of Friday’s Non-Farm Payrolls release.
The report will be released at 8:30 AM ET.
Subscribe to Blog Contact Me Search for Homes Daily List Alert
The interest rate differential between fixed-rate and adjustable-rate mortgages continues to widen and has now reached historic levels.
There’s never been a better time to lock an ARM.
According to Freddie Mac’s weekly Primary Mortgage Market Survey, homeowners in Hiawassee and Blairsville Georgia who lock their mortgage rate today will save 129 basis points on rate, on average, by choosing a 5-year ARM as their mortgage product as compared to a 30-year fixed rate loan.
The average 30-year fixed rate is 4.51%. The average 5-year ARM rate is 3.22%.
It’s the biggest interest rate spread between fixed-rate and adjustable-rate mortgage rates in Freddie Mac’s recorded history; a gap which is the result, in part, of the 5-year ARM dropping to all-time lows this week.
Rates for the 5-year ARM are even lower than during last year’s historic Refi Boom.
Putting today’s “spread” in action against a hypothetical $250,000 loan size, a homeowner that chooses an ARM over a fixed-rate loan would save $184.30 monthly, and would have $500 fewer closing costs.
That’s a 5-year savings of $11,558 — nearly triple what you would have saved just 2 years ago.
The main reason why today’s adjustable-rate mortgages are priced so aggressively relative to comparable fixed-rate loans is that Wall Street expects the economy to drag for the next several quarters, after which it expects an acceleration.
ARMs tend to reflect short-term expectations for the U.S. economy which is why short-term mortgage rates are dropping. Fixed products, by contrast, take a longer view and expectations for an economic rebound are pulling fixed-rate mortgage rates up.
For now, mortgage applicants can exploit the difference — especially those who plan to move within the next 5 years — but adjustable-rate mortgages aren’t right for everyone. ARMs carry particular risks about which you should be aware before locking.
Before you choose an ARM, Contact Me and I will put you in touch with a loan officer who can talk you through it.
Subscribe to Blog Contact Me Search for Homes Daily List Alert
When a mortgage applicants chooses an adjustable-rate mortgage over a fixed-rate one, he accepts a risk that — at some point in the future — the mortgage’s interest rate will rise. Lately, though, that hasn’t been the outcome.
Since mid-2010, conforming mortgages have adjusted below their initial “teaser” rate consistently, giving homeowners in the North Georgia Mountains and nationwide reason to ride their respective adjustable-rate mortgages out.
For example, this month, conforming 7-year and 5-year ARMs are adjusting near 3.011 percent based on the most common loan terms of 2004-2006. It’s because of how adjustable-rate mortgages are structured.
Adjustable-rate mortgages follow a defined lifecycle. First, the ARM’s mortgage rate is pegged; held fixed for a set number of years. This period ranges from one year to 10 years; periods of five and seven years are most common.
When the initial fixed-rate period ends, the mortgage rate then adjusts based on a pre-set formula. The formula is established by contract in the mortgage closing paperwork, and is commonly defined as:
(Adjusted Mortgage Rate) = (2.250 percent) + (Current 1-Year LIBOR)
Next, every 12 months, based on the same formula as above, the ARM adjusts again until 30 years have passed and the loan is paid is full.
It’s important to recognize that in the above equation, LIBOR is a variable so as LIBOR goes, so goes your adjusted mortgage rate. And because LIBOR is ultra-low right now, adjusted mortgage rates are ultra-low, too. LIBOR is expected to stay this way until the global economy has recovered more fully. Analysts predict a higher LIBOR by mid-2012.
So, if you have an adjustable-rate mortgage that’s due to reset this season, don’t rush to refinance. For at least one more year, you can benefit from low rates and low payments. As for the next adjustment, though, that’s anyone’s guess.
Subscribe to Blog Contact Me Search for Homes Daily List Alert
Mortgage lending appears to be loosening. At least for now.
In its quarterly survey of member banks, the Federal Reserve asks senior loan officers around the country whether their “prime” residential mortgage guidelines had tightened within the last 3 months.
A prime borrower is one with a well-documented credit history, high credit scores, and a low debt-to-income ratio.
Of the 54 responding banks, just 2 said its guidelines had tightened during the period October-December 2010. That’s less than 4 percent. And, by comparison, 95 percent of banks said guidelines remained “basically unchanged”.
The remaining banks reported a loosening.
It’s a positive sign for the housing market, and for home buyers in Blairsville and nationwide. If banks have stopped raising the hurdles of home loan approval, in theory, more would-be buyers will be approved.
It’s much tougher to get a home loan versus 5 years ago. Delinquencies and defaults have changed how banks review loan applications. Today’s underwriters are more conservative with respect to household income, total assets and overall credit scores.
Even as compared to January 2010, approval standards are higher :
- Minimum credit score requirements are higher
- Downpayment/equity requirements are larger
- Maximum allowable debt-to-income ratios have been lowered
Although mortgage rates remain low, qualification standards do not. Based on last quarter’s banking survey, however, mortgage applicants in Georgia may find approvals easier to come by soon. Low rates don’t matter, after all, if you’re not eligible to get them.
The housing market is strong and lending looks to be loosening. It should help fuel the demand for homes in 2011, which will push supplies down and lead prices up. For homeowners that qualify, therefore, the best time to purchase a home may be sometime this spring.
Subscribe to Blog Contact Me Search for Homes Daily List Alert
Fannie Mae rolls out new mortgage guidelines Monday. Therefore, if you’re in the process of applying for a conforming home loan, consider giving your complete application by the close of business Friday.
All Fannie Mae applications taken on, or after, December 13, 2010, are subject to the changes.
As compared to mortgage guidelines updates of the last 3 years, Monday’s roll-out is relatively small. There is no change to the maximum debt-to-income ratio, for example; nor is there an increase in the minimum FICO score requirement.
Most mortgage applicants in Blairsville and Blue Ridge and nationwide will be unaffected.
Others, however, will find getting approved to be more difficult.
The most major change is with respect to revolving and installment debt. This category includes credit cards, charge cards, and student loans, among others. Going forward:
- Debt with fewer than 10 payments remaining must now be included in an applicant’s monthly obligations.
- Debt not reporting a monthly payment must be assigned a payment equal to 5% of the outstanding credit balance.
These edits will raise applicants’ debt-to-income ratios, and may push some of them beyond the maximum allowable limits, resulting in a denial. People with relatively large car payments are especially susceptible.
Another change relates to receiving gift funds for a purchase. Unlike debt calculations, though, the “gifting” process is getting easier.
Under the new Fannie Mae guidelines, buyers of owner-occupied, 1-unit properties (i.e. single-family homes, condos, townhomes) can forgo Fannie Mae’s customary, minimum 5% downpayment contribution from personal funds. Downpayments can be comprised 100 percent of gifted and/or granted monies.
Buyers of second or investment homes, or multi-unit properties must still make a 5% downpayment from their own funds.
And, lastly, Fannie Mae is easing some of its documentation requirements. Salaried applicants from whom commissions and/or bonuses paid account for less than 25% of annual income will have fewer paystubs to produce for underwriting.
Fannie Mae’s complete guideline changes are available online at http://efanniemae.com.
Subscribe to Blog Contact Me Search for Homes Daily List Alert
Mortgage rates have been falling since April, shedding more than 1 percentage point since the Refinance Boom began. Today, that momentum could lose some steam.
The Bureau of Labor Statistics releases the October jobs report at 8:30 A.M. ET. With a stronger-than-expected reading, mortgage rates should rise, harming home affordability in Georgia and nationwide.
As cited by the Fed earlier this week, jobs are a key part of economic growth and growth affects mortgage rates.
Looking back at jobs, starting in January 2010, after close to 24 consecutive months of job loss, the economy added jobs for the first time since 2007. It started a small jobs winning streak. By May — boosted by the temporary census workers — monthly job growth reached as far north as 431,000 jobs.
That figure then slipped negative in June and has yet to turn-around.
This month, economists expect 61,000 jobs lost and 9.6% Unemployment Rate.
Jobs matter to the U.S. economy. Among other reasons, employed Americans spend more on everyday goods and services, and are less likely to stop payments on a mortgage. These effects spur the economy, stem foreclosures, and promote higher home values.
The reverse is also true. Fewer workers means fewer disposable dollars and, in theory, a slowing economy. Weak jobs data should spur a stock market sell-off which should, in turn, help lead to mortgage rates lower.
Strong jobs data, on the other hand, should cause mortgage rates to rise.
The stronger October’s employment figures, the higher mortgage rates should go.
Mortgage rates have been jumpy this week because of the Federal Reserve and its new support for bond markets. Today’s employment report should add to the volatility.
Subscribe to Blog Contact Me Search for Homes Daily List Alert
According to foreclosure-tracking firm RealtyTrac, the number of foreclosure filings climbed 4 percent in August from the month prior. A foreclosure filing is defined as default notice, scheduled auction, or bank repossession.
Despite the number of filings surpassing 300,000 for the 18th straight month, RealtyTrac’s report shows some bright spots for housing.
- The number of default notices served per month fell for the 7th time this year
- Foreclosure activity in Nevada, the nation’s leading foreclosure state, is down 25% from last August
- Foreclosure activity has not materially increased since early-2009, pointing to a stabilization
In addition, each of the 10 leading metro areas for foreclosures posted year-over-year declines for the second month in a row.
But, perhaps, most important, is that mortgage lenders and servicers appear to be managing their REO more effectively, making properties available for sale at a measured pace as opposed to flooding markets with new homes. As noted by RealtyTrac, the probable reason is “to prevent further erosion of home prices”.
For home sellers, it’s a welcome development.
Foreclosures have had a hand in falling home values in North Georgia and across the country. And, although it’s self-serving for banks to meter the release of homes under ownership, everyday homeowners benefit, too. Fewer homes on the market helps to provide a floor for Blairsville Georgia housing values.
If you have an interest in buying foreclosed homes, be sure to talk with a real estate agent first. The process of buying a home from a bank is different from buying from “a person”. Having the help of a professional should work to your benefit.
Subscribe to Blog Contact Me Search for Homes Daily List Alert
