If your looking for Chattanooga Homes For Sale, or foreclosed homes for sale please call me.
Who Knows Interest Rates Better: Ben Bernanke or the Investing Public??
Published on Sunday, December 19, 2010, 12:29 AM Last Update: 4 day(s) ago by Preston Howard
Category: All Articles » Mortgage and Finance
As I sat in my chair watching my pipeline move into a dormant state due to the recent rate increases, a sudden avalanche of interest rate deterioration notices from multiple lenders bombarded my e-mail inbox.
Immediately, I checked the stock market and the bond market for obvious signs of activity that could have caused the ruckus, but there was nothing out of the ordinary. I looked at the 10 yr treasury index and there was nothing astounding there either. However, when I looked at the Open Market Transactions for the New York Fed, the evidence was in broad daylight. The Fed had just purchased another $8 billion in securities. This basket of bonds was spread out into seven purchases in one day, with the largest single transaction being $3 billion. The effect was immediate, and this financial shot was heard around the world.
Make no mistake, a variety of other factors have weighed heavily on interest rates (and also our industry) over the last two weeks. Last week, upticks in year-to-year retail sales sent rates up .125%. Positive government economic reports edged rates up higher as well. Moreover, the debate and eventual extension of the Bush tax cuts, along with the perception (and/or fact) that these cuts will keep more money in our pockets while deepening our deficit has added to the rate increase as well. However, the largest piece of the nearly 1.00% point increase in rates (over a 30 day period) has been our Fed’s decision to press onward with the second phase of quantitative easing, also known as “Q.E.2.”
I watched Mr. Bernanke on 60 minutes a few weeks ago, and he was completely non- apologetic about what has been done to date, and what he and his colleagues plan to continue doing to “restart the economy.” However, in this instance, not only is the American market screaming at the top of its financial lungs to stop purchasing bonds, but the other world powerhouses are in agreement as well. China, Germany, and the U.K. have all chimed in to denounce QE2, saying that the U.S. continues to print more money, which adds to the deficit and manipulates the value of the dollar. The payback in the markets has been fierce. The dollar is down sharply against both the British Pound and the Euro. Investors have been selling off bonds in the billions, which has the inverse effect of raising rates. Moreover, the Dow has been particularly erratic with 200-500 point swings occurring on a weekly basis.
The evidence is real. These facts have brutal consequences. In the last 30 days, mass refinances came to a screeching halt, particularly for those looking for a “fixed rate in the low 4s.” Purchases have equally slowed down. Individuals who barely qualified for a home purchase can no longer move forward because their “back end ratios are too high now.” Mortgage brokers and realtors are seeing a drop in interest, but Mr. Bernanke and the Fed affirm that this is the “right course of action.” I don’t see it and my wallet, along with others don’t feel it.
I remain hopeful that Mr. Bernanke and his colleagues truly know what they are doing. He hasn’t flinched, but the market has; in fact, it has flinched a lot. As long as he continues on the current path and the market continues to react as it has, nothing good will come of it. The housing market and all of its components are always involved with our nation’s recessions, and are always linked to the recoveries. In my opinion, our nation won’t recover with this strategy, and will continue to recede. Bernanke and the other Federal Reserve Board of Governors say this is the right course. However, the investing public around the world says we must change course. Seven people in Washington D.C. versus millions of investors around the world--who has the right answer?? I think that we will know the answer in less than two months. Uh oh…..I just heard a another “ding” in my Outlook inbox. Oh no…..another rate increase notification. I guess that Ben is at it again!!
Preston Howard is a mortgage broker and Principal of Rose City Realty, Inc. in Pasadena, CA. Specializing in various facets of real estate finance, he can be reached at howardpr@rosecityrealtyinc.com.
Thursday, December 30, 2010
Monday, December 27, 2010
Friday, December 17, 2010
If you are looking for foreclosed homes for sale in Chattanooga, or Chattanooga homes for sale, Please visit my new website at www.rickyhaynes.crye-leike.com , also www.LivingChattanooga.com will take you to the same site. If you know anyone looking to buy or sell a home in Chattanooga, TN within the next 60 days? Please refer my name. Merry Christmas!
Friday, December 3, 2010
Monday, November 22, 2010
Wednesday, October 13, 2010
Know Your Agent Before Hiring Them!
Just saying! The quality of agents range from 1-10 , bad to good, sometimes just plain awful!!!!!!!!!!!!!!!!!!!!!!! You deserve professional representation on one of the biggest investment you will make. All agents are not created equal. Chances are the agent you talk with isn't a full time agent. That means your working with an agent that has another job ( must not be a very good agent ). I have had 4 contracts fall through due to incompetance on the other agent. This directly affects who I am representing. Ask questions before hiring, or better yet: JUST CALL ME AND I WILL SHOW YOU THE DIFFERENCE BETWEEN HO-HUM AND WOW!
Sunday, September 26, 2010
Q: My mortgage lender has told me I will have to pay PMI. What is PMI?
A: If you’re planning to buy a home, you have probably heard the mortgage lender use the term PMI. PMI is an acronym for Private Mortgage Insurance. PMI is an insurance that is required to protect the lender in the case a borrower defaults on the loan in the event they are not paying at least 20 percent down on a property when obtaining a mortgage loan.
Basically, PMI is generally required when a borrower has less than 20 percent equity, which means the homeowner is putting less than 20 percent down.
And it is required if the loan is a refinance and the borrowers do not have 20 percent equity in the property as well. The cost of PMI increases as your down payment amount decreases. This is something the buyer has to consider when making a mortgage loan application. There are advantages and disadvantages of choosing PMI versus a larger down payment to avoid PMI. But the basic question is what makes people go for PMI?
PMI often helps borrowers to buy a house with a five percent or 10 percent cash down payment. For example, suppose you want to buy a house and obtain a mortgage loan at 95 percent of the cost of the house, the PMI would charge an insurance premium to be included in your monthly mortgage payment.
This PMI insurance premium would help to entice the mortgage lender to make the loan knowing they would be covered for the amount of the mortgage over and above the 80 percent amount.
In the event of default, the PMI insurer would make sure the lender received the amount of money in excess of 80 percent that was loaned to the borrower. This would allow the lender to sell the property to recoup their investment in the event of the borrower’s default and knowing this amount would be covered by the PMI insurer.
Most of the time, an advantage of PMI is that it builds the insurance into the monthly payment and allows the borrower to potentially get a tax deduction. Private mortgage insurance does not give you additional homeowners insurance, but it gives the mortgage lender insurance just in case you do not complete your duty by not paying your payments.
The best part is that you can cancel your PMI after you have achieved 20 percent equity, in most cases. Generally, you have the right to request cancellation of PMI when you pay down your mortgage to the point that it equals 80 percent of the original purchase price. Also, in some cases, lenders allow you to get an appraisal and show that the value is to a point that PMI is not necessary and you are allowed to end the payment of the PMI.
PMI has its disadvantages mostly because of the cost is associated with it. But, there’s no doubt that the advantages it has to a potential homeowner allowing them to purchase a home with a lower down payment. It has made it possible to dream for every American in the country.
A: If you’re planning to buy a home, you have probably heard the mortgage lender use the term PMI. PMI is an acronym for Private Mortgage Insurance. PMI is an insurance that is required to protect the lender in the case a borrower defaults on the loan in the event they are not paying at least 20 percent down on a property when obtaining a mortgage loan.
Basically, PMI is generally required when a borrower has less than 20 percent equity, which means the homeowner is putting less than 20 percent down.
And it is required if the loan is a refinance and the borrowers do not have 20 percent equity in the property as well. The cost of PMI increases as your down payment amount decreases. This is something the buyer has to consider when making a mortgage loan application. There are advantages and disadvantages of choosing PMI versus a larger down payment to avoid PMI. But the basic question is what makes people go for PMI?
PMI often helps borrowers to buy a house with a five percent or 10 percent cash down payment. For example, suppose you want to buy a house and obtain a mortgage loan at 95 percent of the cost of the house, the PMI would charge an insurance premium to be included in your monthly mortgage payment.
This PMI insurance premium would help to entice the mortgage lender to make the loan knowing they would be covered for the amount of the mortgage over and above the 80 percent amount.
In the event of default, the PMI insurer would make sure the lender received the amount of money in excess of 80 percent that was loaned to the borrower. This would allow the lender to sell the property to recoup their investment in the event of the borrower’s default and knowing this amount would be covered by the PMI insurer.
Most of the time, an advantage of PMI is that it builds the insurance into the monthly payment and allows the borrower to potentially get a tax deduction. Private mortgage insurance does not give you additional homeowners insurance, but it gives the mortgage lender insurance just in case you do not complete your duty by not paying your payments.
The best part is that you can cancel your PMI after you have achieved 20 percent equity, in most cases. Generally, you have the right to request cancellation of PMI when you pay down your mortgage to the point that it equals 80 percent of the original purchase price. Also, in some cases, lenders allow you to get an appraisal and show that the value is to a point that PMI is not necessary and you are allowed to end the payment of the PMI.
PMI has its disadvantages mostly because of the cost is associated with it. But, there’s no doubt that the advantages it has to a potential homeowner allowing them to purchase a home with a lower down payment. It has made it possible to dream for every American in the country.
Sunday, September 19, 2010
WHAT MAKES A BEDROOM A BEDROOM?
If you are looking for homes for sale in Chattanooga or foreclosed homes for sale in Chattanooga, please call. I know I can help.
Q: What makes a room a bedroom?
A: Determining how many bedrooms a house has can be a tricky formula. Just because your 3-year-old sleeps in a walk-in closet and thinks he has a master suite does not make it a bedroom. Finding out what makes a bedroom can be interesting as well as frustrating. The definition of a bedroom can be different in other parts of the state or country.
The first requirement is simply a room for sleeping. The room must be a room with a doorway. No half-finished privacy walls or anything of that nature; the room must be fully enclosed. Also, having a closet or a window or both is not a simple rule to follow either.
The Chattanooga Multiple Listing Service has distinct requirements for Realtors to use to define if a room is a bedroom.
These requirements are defined by using the definition of both the Universal Residential Appraisal Report and the Southern Building Code.
If you see the number of bedrooms posted in a MLS listing, it should be according to both of these definitions. This can get tricky because both have different requirements for a room to be defined as a bedroom.
The Universal Residential Appraisal Report defines a bedroom as a room with a closet and should not serve as a corridor to any other room. So, by this definition, a room must have a rod to hang clothes in a defined location within the room. And the room must not have the access of any other room as the adjacent room’s only way to enter. In other words, it cannot be a hallway or room to enter by coming or going to that room.
The Southern Building Code requires that a bedroom must have a window or a door to the immediate outside for egress. These address different issues than the Universal Residential Appraisal Report. By this definition, it simply has to have a window or a door to the outside of the house.
So, if you see a Realtor’s posting of home listing in the greater Chattanooga area, a bedroom would be a room with a closet, no corridor to another room and have a window or a door to outside of the home. The greater Chattanooga area includes the Tennessee counties of Hamilton, Marion and Sequatchie. And it includes the Georgia counties of Catoosa, Dade and Walker. Areas other than greater Chattanooga can follow different guidelines and other Multiple Listing Services may have different requirements.
Q: What makes a room a bedroom?
A: Determining how many bedrooms a house has can be a tricky formula. Just because your 3-year-old sleeps in a walk-in closet and thinks he has a master suite does not make it a bedroom. Finding out what makes a bedroom can be interesting as well as frustrating. The definition of a bedroom can be different in other parts of the state or country.
The first requirement is simply a room for sleeping. The room must be a room with a doorway. No half-finished privacy walls or anything of that nature; the room must be fully enclosed. Also, having a closet or a window or both is not a simple rule to follow either.
The Chattanooga Multiple Listing Service has distinct requirements for Realtors to use to define if a room is a bedroom.
These requirements are defined by using the definition of both the Universal Residential Appraisal Report and the Southern Building Code.
If you see the number of bedrooms posted in a MLS listing, it should be according to both of these definitions. This can get tricky because both have different requirements for a room to be defined as a bedroom.
The Universal Residential Appraisal Report defines a bedroom as a room with a closet and should not serve as a corridor to any other room. So, by this definition, a room must have a rod to hang clothes in a defined location within the room. And the room must not have the access of any other room as the adjacent room’s only way to enter. In other words, it cannot be a hallway or room to enter by coming or going to that room.
The Southern Building Code requires that a bedroom must have a window or a door to the immediate outside for egress. These address different issues than the Universal Residential Appraisal Report. By this definition, it simply has to have a window or a door to the outside of the house.
So, if you see a Realtor’s posting of home listing in the greater Chattanooga area, a bedroom would be a room with a closet, no corridor to another room and have a window or a door to outside of the home. The greater Chattanooga area includes the Tennessee counties of Hamilton, Marion and Sequatchie. And it includes the Georgia counties of Catoosa, Dade and Walker. Areas other than greater Chattanooga can follow different guidelines and other Multiple Listing Services may have different requirements.
Sunday, August 29, 2010
Wednesday, August 25, 2010
Weekly Market
Activity Report
For the week ending August 14, New Listings in the
Chattanooga region were down 16.7 percent in year-over-year
comparisons as 250 properties Publish Date: August 23, 2010 Weekly Activity
Pending Sales . . . . . . . . . 3
New Listings . . . . . . . . . 2
Months Supply of Inventory
new came on the market.
Buyer activity remained above 2009 levels with 128 contracts
written last week, representing a 7.6 percent increase.
This helped to keep inventory levels lower than last year for the
seventh consecutive week. The number of Active Listings for
Sale was down 3.5 percent to 6,553 properties.
Based on July figures, those sellers who are still waiting for an
offer could expect to receive 90.8 percent of their list price and a
market time of 114 days, though this number has been coming
down in recent months. Median Sales Price remained at
$132,000 taking into consideration overall market activity.
Median Sales Price . . . . . . . . . 7
. . . . . . . . . 8
. . . . . . . . . 6
Most Recent Month
. . . . . . . . . 9
Percent of Original List Price Received
. . . . . . . . . 4
Housing Affordability Index
Active Listings
Days on Market Until Sale . . . . . . . . . 5
All data from the Chattanooga Association of REALTORS®. Reports are created and maintained by 10K Research and Marketing. 1
Activity Report
For the week ending August 14, New Listings in the
Chattanooga region were down 16.7 percent in year-over-year
comparisons as 250 properties Publish Date: August 23, 2010 Weekly Activity
Pending Sales . . . . . . . . . 3
New Listings . . . . . . . . . 2
Months Supply of Inventory
new came on the market.
Buyer activity remained above 2009 levels with 128 contracts
written last week, representing a 7.6 percent increase.
This helped to keep inventory levels lower than last year for the
seventh consecutive week. The number of Active Listings for
Sale was down 3.5 percent to 6,553 properties.
Based on July figures, those sellers who are still waiting for an
offer could expect to receive 90.8 percent of their list price and a
market time of 114 days, though this number has been coming
down in recent months. Median Sales Price remained at
$132,000 taking into consideration overall market activity.
Median Sales Price . . . . . . . . . 7
. . . . . . . . . 8
. . . . . . . . . 6
Most Recent Month
. . . . . . . . . 9
Percent of Original List Price Received
. . . . . . . . . 4
Housing Affordability Index
Active Listings
Days on Market Until Sale . . . . . . . . . 5
All data from the Chattanooga Association of REALTORS®. Reports are created and maintained by 10K Research and Marketing. 1
Sunday, August 22, 2010
-
5 Tips for Deciphering Your Home Loan’s Good-faith Estimate
Knowing how to read your good-faith estimate can help you save money on your home loan. Read
-
7 Homeowner Tax Advantages
When you’re evaluating how much home you can afford, make sure you factor in the tax advantages of homeownership. Read
-
4 Tips to Determine How Much Mortgage You Can Afford
By knowing how much mortgage you can handle, you can ensure that home ownership will fit in your budget. Read
-
7 Tips for Improving Your Credit
Here’s how to clean up your credit so you get the least-expensive home loan possible. Read
-
Find the Home Loan that Fits Your Needs
Understand which mortgage loan is best for you so your budget is not stretched too thin. Read
Visit houselogic.com for more articles like this.
Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®
Friday, August 20, 2010
Tuesday, August 17, 2010
Good Home On A Fine Lot With Good Neighbors
Overview Maps Photos Features Video |
|
 | Ricky Haynes Remax Properties (423) 635-7304 rickyhaynes@gmail.com http://www.LivingChattanooga.com      Listed by: Ricky Haynes |
|
Monday, August 16, 2010
A Smart Low Maintenace Homes w/No Steps!
Overview Maps Photos Features Video |
|
 | Ricky Haynes Remax Properties (423) 635-7304 rickyhaynes@gmail.com http://www.LivingChattanooga.com Listed by: Ricky Haynes |
Our recent listings A Smart Low Maintenace Homes w/No Steps! Fantastic LOT IN A BEAUTIFUL ESTABLISHED NEIGHBORHOOD CORNER BUILDING LOT IN UPSCALE SUBDIVISION WITH GREAT SCHOOL ZONES IT'S A SMALL PRICE...YOU'LL PAY FOR THIS ALL BRICK HOME!! Dreams Dont Last....Neither Do Dream Houses!
|
|
Sunday, August 15, 2010
Saturday, August 14, 2010
Wednesday, August 11, 2010
Dreams Dont Last....Neither Do Dream Houses!
Overview Maps Photos Features Description *LEE PIKE SLIDESHOW* |
|
 | Ricky Haynes Remax Properties (423) 635-7304 rickyhaynes@gmail.com http://www.LivingChattanooga.com Listed by: Ricky Haynes |
Our recent listings CORNER BUILDING LOT IN UPSCALE SUBDIVISION WITH GREAT SCHOOL ZONES GREAT LOT IN A BEAUTIFUL ESTABLISHED NEIGHBORHOOD IT'S A SMALL PRICE...YOU'LL PAY FOR THIS ALL BRICK HOME!! Dreams Dont Last....Neither Do Dream Houses! Level Living Makes It Easy For You To Take It Easy
|
|
Tuesday, August 10, 2010
Chattanooga Homes For Sale monthly market update: Pending home sales edged down with near-term sales expected to be notably lower in contrast to the spring surge when buyers rushed to take advantage of the home buyer tax credit, NAR says. The Pending Home Sales Index, a forward-looking indicator, declined 2.6 percent to 75.7 based on contracts signed in June from an upwardly revised level of 77.7 in May, and is 18.6 percent below June 2009 when it was 93.0. The data reflects contracts and not closings, which normally occur with a lag time of one or two months. NAR Chief Economist Lawrence Yun said lower home sales are expected in the short term, but added that sales could pick up later this year if the job market improves.
Sunday, August 8, 2010
BUILDING CORNER BUILDING LOT, UPSCALE SUBDIVISION WITH GREAT SCHOOL ZONES
Overview Maps Photos Description Neighborhood |
|
 | Ricky Haynes Remax Properties (423) 635-7304 rickyhaynes@gmail.com http://www.LivingChattanooga.com Listed by: Ricky Haynes |
Our recent listings GREAT LOT IN A BEAUTIFUL ESTABLISHED NEIGHBORHOOD IT'S A SMALL PRICE...YOU'LL PAY FOR THIS ALL BRICK HOME!! Dreams Dont Last....Neither Do Dream Houses! Level Living Makes It Easy For You To Take It Easy Chattanooga Custom Built Townhomes
|
|
GREAT LOT IN A BEAUTIFUL ESTABLISHED NEIGHBORHOOD
Overview Maps Photos Description Neighborhood |
|
 | Ricky Haynes Remax Properties (423) 635-7304 rickyhaynes@gmail.com http://www.LivingChattanooga.com Listed by: Ricky Haynes |
Our recent listings IT'S A SMALL PRICE...YOU'LL PAY FOR THIS ALL BRICK HOME!! Dreams Dont Last....Neither Do Dream Houses! Level Living Makes It Easy For You To Take It Easy Chattanooga Custom Built Townhomes There Is No Substitute For Style!
|
|
Subscribe to:
Posts (Atom)