Dip in Home Mortgage rates as of February 9, 2007

Mortgage rates eased this week on the heels of Friday's employment report that showed weaker-than-expected job growth in January. 30-year fixed rate mortgages averaged 6.28% this week compared to 6.34% last week according to Freddie Mac's mortgage market survey. Economists at Freddie Mac predict that long term rates will hover between 6.3% and 6.5% this year which would cause the refinance share of origination to contract to 42% from 49% currently

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What to look for in a real estate agent

There's a common saying in the real estate industry regarding the vast number of agents in the business: "If you don't have any friends who are agents, then you probably don't have any friends at all." With so many agent out there, how can you make an intelligent decision? Do you choose a friend, neighbor or coworker? Should you work with an agent at a large firm, a small firm, a franchise or an independent? While there's an exception to every rule, and every marketplace has its own nuances, here are some solid rules to apply when you want the best representation to protect your interests. Demand Experience Always look for an agent with at least two years of experience. Anyone still in the business after two years has probably learned at least the fundamentals of real estate. Look for Commitment Another problem we have in the industry is a large number of part-time and recreational salespeople. No matter how long they have been in real estate, their lack of f...

Getting the Best Tax Break When Selling Your Primary Residence

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...

A Down Payment Anomaly

Despite home buyers being advised to issue down payments of at least 20 percent, many home buyers are finding that smaller down payments result in better interest rates—but also higher payments. Rules put in place in late 2008 by Fannie Mae and similar rules adopted by Freddie Mac are less favorable to borrowers who put down 20 percent to 25 percent--partially because the GSEs consider these borrowers to be more of a credit risk since they are not required to purchase private mortgage insurance. According to Fannie Mae, borrowers benefit from this industry practice because they are able to leave themselves a financial cushion by not issuing larger down payments, and can instead save the extra money for emergencies. It is important to note though that smaller down payments mean higher monthly payments because the loan itself will be larger. To read the full story, please click here Message David Hoshaw Broker, CRS, GRI, e-PRO Weichert, Realtors - Hos...

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