Mortgages Becoming Easier to Obtain!

Mortgages Becoming Easier to Obtain In some parts of the country, borrowers with good credit are more likely to be able to borrow 95 percent of the purchase price than they were just a few months ago.In Florida and other troubled markets credit remains tight and mortgage companies continue to scrutinize property appraisals, which makes it difficult for some borrowers to get financing. But in most areas of the country where prices are stabilizing or falling only slightly, standards are relaxing.“We are starting to see...moderation," said Neil Librock, head of credit risk for Wells Fargo & Co.Source: The Wall Street Journal

Best Remodeling Projects

Remodeling: Best Bang for Your Buck Despite a slow market and a slight decrease in the resale value of most remodeling projects, REALTORS® report that the smartest home improvement investments may also be some of the least expensive. Results from the 2009 Remodeling Cost vs. Value Report show that small-scale exterior projects are the most profitable at resale, according to estimates by REALTORS® who completed a recent survey.On a national level, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that cost less than $14,000. Certain types of door and siding replacements, as well as wood deck additions all returned more than 80 percent of project costs upon resale. A steel entry door replacement – a new addition to this year’s list – recouped 128.9 percent of costs, followed by upscale fiber-cement sliding replacements at 83.6 percent. Wood deck additions recouped 80.6 percent of costs. “Once again, this year’s Remodeling Cost vs. Value Report highlights the importance of a home’s first impression,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “With exterior projects returning a high percent of project costs upon resale, Realtors® can help give your home curb appeal while adding value to the real estate transaction.The 2009 Remodeling Cost vs. Value Report compares construction costs with resale values for 33 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the twelfth consecutive year that the report, which is produced by Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine, as REALTORS® provided their insight into local markets and buyer home preferences within those markets. On a national level, the project with the biggest improvement from 2008 was the attic bedroom addition, recouping 83.1 percent of remodeling costs compared to 73.8 percent in 2008. The only other interior project that landed in the top 10 was a minor kitchen remodel with 78.3 percent costs recouped. Other exterior projects in the top 10 include midrange vinyl and upscale foam-backed vinyl sliding replacements, which returned more than 79 percent of costs. In addition, several types of window replacements – midrange wood, midrange vinyl, and upscale vinyl – all returned more than 76 percent of costs upon sale.Similar to last year’s report, the least profitable remodeling projects in terms of resale value were home office remodels and sunroom additions, returning only 48.1 percent and 50.7 percent of project costs. Regionally, cities in the Pacific states of Alaska, California, Hawaii, Oregon and Washington once again outperformed the rest of the nation in terms of remodeling costs recouped upon resale. The West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia also performed relatively well.The regions that generally returned the lowest percentage of costs were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island and Vermont), East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin), West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota), and the Middle Atlantic (New York and Pennsylvania). Golder commented that remodeling projects are just one of many factors that contribute to a home’s overall resale value. “As the first, best source for real estate information, REALTORS® are experts in providing insight into what projects and investments will make a difference in your house. It’s important to consult with a REALTOR® who can explain the variety of factors that affect a home’s value, such as location, condition of surrounding properties and the regional economic climate,” she said.

Mortgage Volume Rises Slightly

Mortgage Volume Rises Slightly Mortgage applications were up 0.3 percent last week compared to the previous week on both a seasonally adjusted basis and on an unadjusted basis, according to the Mortgage Bankers Association weekly survey.The increase was in refinances, which rose 0.9 percent. As a share of mortgage activity, refinances hit 74.4 percent, the highest refinance share since April 24.The purchase index decreased 0.1 percent on an adjusted basis and declined 3.6 percent on an unadjusted basis. It was 15.4 percent lower than it was the same week last year.Some mortgage rates were higher last week compared to the previous week:
30-year fixed-rate mortgages increased to 4.92 percent from 4.88 percent.
15-year fixed-rate mortgages remained flat at 4.33 percent.
1-year ARMs decreased to 6.52 percent from 6.55 percent.

Are Fixed-Rate Mortgages the Best Loan?

The think-tank Center for American Progress is questioning the premise that a 30-year, fixed-rate mortgage is the best option for homebuyers.The reason mortgage-backed securities looked so attractive to banks is that they solved the problem of a mismatch between low rates on mortgages and higher rates for deposits. Banks worried about getting stuck earning low rates on a mortgage for 30 years while having to pay higher rates on bank accounts to attract depositors. Their answer: unload their mortgages to investors and let them worry about the profitability of the loans. Those investors hedged their bets by purchasing interest-rate swaps and other derivatives. Now, even Fannie Mae and Freddie Mac are having a hard time getting a handle on what those hedges are worth. In other parts of the world, variable rates are the norm. While borrowers face the risk of rates going up, lenders at least can ensure the rates they pay to depositors don't outstrip what they receive in mortgage products. Homeownership rates in Canada and the European Union, where variable rate mortgages are the norm, are about what they are in the U.S. And in any case, there are ways for borrowers to mitigate their interest-rate risk. They can take out loans with fixed initial period, for example. For homeowners who typically hold their homes for seven years, a five-year fixed rate provides considerable security. If the country persists in choosing fixed-rate mortgages, some observers say, lenders might consider the Danish model where mortgages are financed through the bond market rather than a separate securities market. That's a system that has worked well for two centuries.

Windows 7

About three weeks ago my computer received the blue screen of death! Thank God for external hard drives for backing up my information. I purchased a HP that has Windows 7 and I love it. Here are a few things that are new with Windows 7.

There are plenty of reviews about the new operating system, and they all share an underlying theme. While Vista was not the XP successor users were hoping for, Windows 7 has real promise of filling the gap. With its revamped user interface, yet low-key, minimalist approach, it offers a much altered experience to that of Vista.

Enjoy new user interface enhancements like the reorganized Taskbar, which gives the Mac OS X dock a run for its money. Experience features like Jump Lists that keep the most recent things you've used close by for fast access; or the Pin feature which lets you "pin" programs or files to your Taskbar or Jump Lists.

Keep your desktop organized with Aero Peek, a new management tool that provides thumbnails of all open windows. Scroll over thumbnails to get a peek of the full view window. Or use the desktop peek feature to view your desktop by making all windows transparent with a simple click of the mouse. This might be one to get used to because Windows 7 has omitted the Sidebar, the portion of the screen that Vista reserved for gadgets. Now you'll find your gadgets such as your calendar, pictures, weather or games directly on the desktop.

A few other changes worth mentioning are enhanced security with less annoying UAC (User Access Controls), easier network sharing with HomeGroup, and XP Mode for programs that require a PC running XP.

Windows 7 comes with six different editions to choose from - Starter, Home Premium, Professional, Ultimate, OEM, and Enterprise.

So if you are thinking about upgrading to Windows 7 I highly recommend it!

Christmas is in the Air

With Christmas music playing on my laptop and the snow flakes falling outside. my thoughts go to what a great time to have your home on the market. The tree is decorated, presents wrapped, your home smells of fresh gingerbread cookies, buyers wander through your home to fill the spirit of Christmas! I realize most seller's do not want their home on the market over the holidays, but I feel this is a big mistake! Buyers are eager to cash in on the newest tax credit and are willing to battle the snow drifts to find their perfect home. While o other sellers have taken their home off the market, this means less compitition for your home to sell! A SOLD sign on your lawn would make a great Christmas decoration.