Santa Clarita Valley Real Estate

Santa Clarita Valley Real Estate

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Low home loan rates create more affordable housing.

HOME LOAN RATES REMAIN LOWER:   

NOW MAY BE THE PERFECT TIME TO SEE HOW MUCH YOU CAN SAVE ON YOUR NEXT MOVE.  HAVE YOU BEEN CONSIDERING DOWNSIZING, UP-SCALING,  MOVING TO A BETTER NEIGHBORHOOD OR SCHOOL DISTRICT?  

IF YOUR CURRENTLY RENTING THIS IS ALMOST A NO BRAINIER, WHEN YOU COMPARE YOUR RENT TO YOUR INVESTMENT IN OWN HOME.   



TODAY'S  CONFORMING LOANS TO 417K OFFER THE FOLLOWING:
5/1 ARM: 3.25%with zero points
10 Year Fixed: 3.375% with zero points
15 Year Fixed: 4% with zero points
30 Year Fixed: 4.75% with zero points.

JUMBO TO 729K
5/1 ARM: 3.5% with zero points
10 Year Fixed: 3.875% with zero points
15 Year Fixed: 4% with zero points
30 Year Fixed: 4.75% with zero points
out-of-pocket cost is for the appraisal.

SUPER JUMBO TO 1.5MM
5/1 ARM: 4% with 1/2 point
30 Year Fixed: 4.75% with 1/2 point
  
Special attention to consider the 30 year fixed rate on Super Jumbo. This rate has never been this low.  Usually rates on the Super Jumbo are at least .75% higher than the 729K loan.  Also note the 10 year fixed on conforming.  3.375% rate with zero points is incredible for those who can afford the shorter amortization period.   

WANT TO SEE WHAT YOUR BUYING POWER IS TODAY?  LET ME KNOW AND WE CAN FIND OUT IN ABOUT 10 MINUTES.

the new federal health care law does NOT include a 3.8 percent transfer tax on home sales

Contrary to some widely circulated e-mail messages, the new federal health care law does NOT include a 3.8 percent transfer tax on home sales, according to Snopes.com, FactCheck.org and the National Association of Realtors.

The new law created a 3.8 percent Medicare tax, which applies to net investment income earned by taxpayers who have an adjusted gross income of more than $200,000 for individuals or $250,000 for married couples. That tax becomes effective Jan. 1, 2013.

Net investment income includes capital gains from the sale of a home, so a home sale could push a taxpayer's income into the bracket in which the new tax would apply. However, the existing capital gains tax exclusion of $250,000 for individuals and $500,000 for married couples on the sale of a principal residence is still in effect, and that will protect nearly all homeowners from the new tax.

"The truth is that only a tiny percentage of home sellers will pay the tax," FactCheck.org reports.

More information:
Snopes: Real Estate Tax
FactCheck.org: A 3.8 Percent 'Sales Tax' on Your Home?
NAR: Myth Busters (PDF)
NAR: The 3.8% Tax: Real Estate Scenarios and Examples

David Hoshaw
Broker, CRS, GRI, e-PRO

Weichert, Realtors - Hoshaw & Associates

28009 Smyth Drive  Santa Clarita, CA 91355
 

661-287-4466 ext. 226

661-312-1579 mobile

david@scvRealty.com

www.scvRealty.com

The jumbo-mortgage comeback

Smaller and regional lenders are issuing more new jumbo loans and doing more refinancings, which could help bolster home sales in some areas.

• Jumbo mortgages are mortgages deemed “too big” to be sold by lenders to government-supported agencies such as Fannie Mae and Freddie Mac.
• The loan limit of a jumbo mortgage varies depending on location. In high-cost areas, including many areas in California, jumbo loans are generally considered those that exceed $729,750. In other areas, the jumbo loan limit usually is capped at $417,000.

• Some borrowers applying for jumbo mortgages are finding the processing time at larger lenders can be as long as four months, while some smaller institutions can process a jumbo mortgage as quickly as 30 to 60 days.

• Additionally, borrowers seeking jumbo mortgages for condos or vacation properties also may be better served using a local lender or contacting a mortgage specialist, as many large lenders have reduced their lending activity.

• With jumbo mortgages, borrowers still need excellent credit profiles and must provide complete documentation and verification of income. Down payments of 20 percent to 40 percent also tend to be required for a jumbo mortgage.

David Hoshaw
WEICHERT, REALTORS® - Hoshaw & Associates
28009 Smyth Drive, Santa Clarita Ca 91355
Office: 661-287-4466 x226
Mobile: 661-312-1579

David@scvrealty.com

http://www.scvrealty.com

Getting the Best Tax Break When Selling Your Primary Residence

When you sell your primary residence, you may be able to save thousands of dollars by taking advantage of one of the best available tax breaks.  Provided that you have lived in the home as your primary residence and owned it for at least two of the past five years, when you sell your home, you can exclude from income up to $250,000 of gain ($500,000 for married couples filing jointly).  This tax benefit can be used once every two years. 

Did you know that a married couple can qualify for the entire $500,000 exclusion even if only one spouse has owned the property for two years?  Or that you don’t need to own the home and use it as your primary residence the same two years?  Read on for a few pointers that may help you take advantage of this tax benefit when you sell your primary residence. 

Pointer One - $500,000 Exclusion for Married Couples Available Even if Only One Spouse Owns Home for Two Years

If you are married and you and your spouse file a joint return, you can exclude up to $500,000 of gain under this rule, provided that:

• Either you or your spouse has owned the home at least two of the past five years;

• Both you and your spouse have used the home as your primary residence at least two of the past five years; and

• During the two year period prior to the sale, neither you nor your spouse excluded gain from the sale of another home. 

If both spouses don’t qualify under these rules, the maximum tax exclusion is based on what they qualify for individually, but each spouse is treated as owning the property during the period that either spouse has owned it. 

 Pointer Two - Ownership and Use Timeframes Don't Need to Occur at the Same Time

Although the exclusion is only available if you have used your home as your primary residence and owned it for at least two of the past five years before the sale, the required two years of ownership and two years of use don’t have to occur at the same time. 

For example, Tina rents a home and lives in it as her primary residence starting in 1995.  In September of 2008, Tina buys the home she has been living in.  She continues to live in it for a month and then moves to another home.  In October of 2010 Tina sells the home.  In this case, Tina has used the home as her primary residence for at least two of the past five years (October 2005 until October 2008) and she has owned the home for at least two of the past five years (September 2008 until October 2010).  Even though the usage and ownership time frames did not occur at the same time, Tina is eligible for the exclusion of up to $250,000 of her gain. 

The ownership and usage time frames also don’t have to be continuous, so you qualify for the exemption as long as you have used the home as your primary residence and have owned it for a total of at least a full 24 months or 730 days before the sale. 

Pointer Three - Using Your Home for Personal and Business Use

Sometimes a property can be used partly as your primary residence and partly for business or as a rental.  This may happen when you have an office in your home or own a duplex in which you live in one unit and rent the other unit.  This can also occur when you change the use of the property from business to personal or vice versa.  A few points to remember:

• There are special rules that determine how you allocate your basis and gain between the part of the property used as your home and the part of your property used as a business or rental, but in some cases the rules allow you to take the entire exclusion even if a part of your property is used in your business or is rented.   
• If you acquire property in a 1031 exchange and then move into it as your primary residence, you must own it for five years before you can exclude any gain from a sale of the home.  In addition, the gain attributed to the years that you used the property for your business or as a rental may reduce the total amount of gain you are entitled to exclude when you sell the property.   
• If you move out of your primary residence and rent it for one or two years before you sell it, you may be able to exclude gain using this tax benefit and defer any excess gain by doing a 1031 exchange into another property.   

One of the best tax benefits widely available to homeowners is the exclusion of gain upon the sale of your primary residence.  We encourage you to call us to discuss any questions you might have or to open an exchange. 

How to buy a home at a $100,000 discount

How to buy a home at a $100,000 discount
With nearly 150,000 foreclosed homes on their books, Fannie Mae and Freddie Mac are trying to pare down their growing inventory of repossessed properties, in turn providing home buyers with tremendous purchasing opportunities.

MAKING SENSE FOR CONSUMERS
An analysis by SmartMoney magazine found that home buyers could save $100,000 on the price of a home by purchasing a foreclosed home owned by Fannie Mae or Freddie Mac as opposed to a similar fair-market property just a few blocks away.

Fannie Mae’s homebuying program, which requires down payments as low as 3 percent on 30-year mortgages also can help buyers save money. However, buyers should note, smaller down payments generally translate into higher monthly mortgage payments.

Another bonus to purchasing a Fannie Mae-owned home, the company doesn’t require private mortgage insurance, which most lenders require for buyers who put down less than 20 percent.

Unlike many foreclosed properties, which usually require many repairs, Fannie and Freddie generally repair items such as leaky roofs and damaged electrical work, and often handle small projects like replacing appliances that are broken or missing, replacing old carpet, or fixing damages left by the former owners or vandals. Additionally, Fannie Mae’s properties come with an optional mortgage that includes extra financing up to $30,000 for repairs and improvements.

Buyers of Freddie Mac homes who plan to be owner-occupants –those who plan to live in the home and not use it as an investment property—have the advantage of viewing properties 15 days earlier than investors who often pay all cash and buy up foreclosed properties before owner-occupants have a chance to view them.
Please contact me for answers to your real estate questions or to schedule a personal consultation to achieve your real estate goals.

Sincerely,

David Hoshaw
Broker, CRS, GRI, e-PRO
Weichert, Realtors - Hoshaw & Associates
28009 Smyth Drive Santa Clarita, CA 91355

661-287-4466 ext. 226
661-312-1579 mobile
david@scvRealty.com

http://www.scvRealty.com

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Mortgage Rates Hit 50 Year Low!

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You're probably used to thinking that patience can be a virtue when you're shopping for a bargain on a large purchase. But when that purchase is real estate, the opposite is true. Today's conditions - attractive home prices and interest rates at historic lows - have combined to make the current housing market one of the most affordable in decades. It simply makes no sense to hold out for a better opportunity that isn't likely to come.

Signs are already pointing to higher interest rates and, with home prices stabilizing or increasing in most markets, waiting to buy a home could easily cost you several thousand dollars each year. If buying a home is in your future, you won’t want to miss out on this once-in-a-lifetime opportunity.

Comparison of cost at sample mortgage amount:
$275,000 Mortgage	At current low interest rate	$1476.26 per month	Savings of $172.50 per month and more than $62,000 over 30 years
$275,000 Mortgage	At 1% increased interest rate	$1648.76 per month

To learn more about what kind of home you can afford today, call or stop by your local Weichert office. 661-287-4466 x226

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Fannie Mae to treat walk away borrowers harsly in future loan opportuinities

Fannie Mae bites back on homeowners who walk away from the upside down homes and investment properties.

The courts will now come to the mortgage giant’s plans to take on those who decide not to make their payments. It also will limit their access to future loans. Foreclosures continue at a rate of 2.5 million a year, Federal Deposit Insurance Corp. Chairwoman Sheila Bair said, and some 11 million households owe more on their mortgage than their home is worth. Taking aim at homeowners who are able to pay their mortgage but decide it's not worth it, Fannie Mae plans to go after them in court and to limit their access to home loans for seven years. It was a clarion call to companies servicing its loans to recommend, engaging in a so-called deficiency judgment — a court order requiring a defaulting borrower to pay any remaining unpaid portion of the loan after a seized home is sold.
Under California state law, lenders who opt for court proceedings can obtain a deficiency judgment if the mortgage was used to refinance a home, but not if it was used to finance a purchase.

Fannie Mae also said it would make new mortgages harder to obtain for borrowers if it can be proved that they engaged in a "strategic default" — abandoning a home to foreclosure not because the required payments are unaffordable but because the mortgage is larger than the value of the residence. For such a borrower, Fannie said it would not buy or guarantee another home loan for seven years. Borrowers who are slightly underwater — owing just a little more than their homes are worth — are unlikely to stop paying their mortgages if they have the resources, according to studies by research firm CoreLogic. But if the home's value is at least 25% less than the loan amount, borrowers are far more likely then to walk away. Last March, 31% of foreclosures were described as strategic by the borrowers themselves, compared with 22% in March 2009, researchers at the University of Chicago and Northwestern University reported.