June 5, 2008
Does the environment in your new home support healthy living? When we think of places impacted by air pollution and dangerous contaminants, most of us wouldn’t consider that new homes may be at risk. But the Environmental Protection Agency cites indoor air quality as one of the greatest threats to our health.
May 22, 2008
So you’re ready to start your search for a new home? Do you like the idea of buying a move-in ready, new construction home with a modern layout and all the amenities? Yet, you really fall for the charm and architectural style of a well-appointed older home? New construction homes are built with floor plans suited to today’s lifestyles, with open layouts, master suites, walk-in closets and lots of storage space.
But unless you’re looking at high-end, luxury homes, they do not usually come with the architectural details of older, existing homes. Asking a builder to upgrade a new model home with these extra features can be quite pricey. Still, in the current real estate market, home buyers have some leverage to negotiate with builders, and it wouldn’t hurt to ask that some free upgrades be included in your new home purchase. Adding architectural style to your new home will definitely turn up its charm factor - and increase its marketability and resale value as well.
April 18, 2008
Market and Economic Recap News on the new homes real estate industry, mortgage loans and the economy.
Business Week Ending April 18, 2008
April 2, 2008
On Monday, Treasury Secretary Henry Paulson presented his blueprint to overhaul the way the U.S. regulates its financial system. If implemented, the plan would significantly alter the way banks, brokerages and insurance companies conduct their business. Some of the suggested changes would establish consistent licensing standards for mortgage lenders. Another proposal, strongly opposed by the banking industry, may eliminate thrifts that once funded a major share of mortgage loans for new home buyers.
March 14, 2008
Business Week Ending March 14, 2008
February 29, 2008
Business Week Ending February 29, 2008
February 18, 2008
Tucson, county seat of Pima County, is the second largest city in Arizona, with 518, 956 residents according to 2006 census figures. Nicknamed ”the Old Pueblo,” the city is located southeast of Phoenix, along Interstate 10 and I-19, just 60 miles north of the U.S. - Mexico border.
January 23, 2008
After global financial markets took a dive Monday on fears that the world’s largest economy was headed toward recession, the Federal Reserve took swift and immediate action. In an emergency meeting, the Fed cut its overnight lending rate by 75 basis points, hoping to prevent a complete market meltdown. At opening Tuesday, stocks plunged on Wall Street, with the Dow Jones dropping 465 points at its lowest point, then regaining some ground to close just below the 12,000 level - its lowest in 16 months. Fed Rate Cuts Will Help Subprime Borrowers Frank Nothaft, chief economist for Freddie Mac, calls the Fed’s cut “good news for people who have mortgages or are shopping for a mortgage.” Borrowers with adjustable-rate mortgages (ARMs) indexed to the prime rate will benefit as banks follow the Fed’s lead and lower the prime rate to 6.5. Subprime borrowers expecting interest-rate resets will see a smaller increase in their payment, and in some cases “maybe even a decline,” according to Nothaft.
What about long-term interest rates? The most recent Freddie Mac survey of mortgage rates put the 30-year fixed rate at 5.69 percent - the best it’s been for over 2 1/2 years. Where the long-term rates go from here depends largely on the perceptions of market investors and whether they believe the Fed’s cuts will be enough to boost the economy.
Borrowers seeking non-conforming jumbo loans (those not guaranteed by Freddie Mac and Fannie Mae) will continue to pay higher rates - at least a full percentage point higher than loans below the $417,000 loan limit.
Want to …
January 14, 2008
It’s in the news daily…banks closing their mortgage divisions, lenders writing off billions of dollars in subprime mortgage debt, the Federal Reserve holding auctions to inject more money into the financial system. With all the doom and gloom, you might think that the prospect of buying a new home and finding a lender that will give you a decent rate on a home mortgage is nearly an impossible feat. But it’s not. Mortgage Lenders Court Qualified Home Buyers There are a lot of mortgage companies out there that did little to no business in the non-conforming loan category, still loaning money to home buyers, just as they did before the subprime mortgage debacle. Many other lenders that felt the sting of exposure from bad mortgage debt did not pull up posts and exit the market. In fact, they’re even writing quite a few jumbo mortgages (loans for more than $417,000) these days. After all, banks are in the business to make money. To make money, banks still need to write loans. Sure, they’re more cautious, but if they used better business practices all along, would we be talking about a credit crunch and subprime mortgage crisis? Would you loan someone money who couldn’t prove he had the means or the method to pay you back? I sure wouldn’t.
So, what do you have to do to qualify for good mortgage rates these days? Lenders want to see:
a steady, documented work history pay stubs verified assets credit scores of 650 or more
Generally, if you have paid your bills on-time, and you can prove that you make the money to buy the house, you won’t have a problem qualifying …
January 11, 2008
More negative news this week on the economic front prompts more analysts to predict a recession in 2008. Bank of America announced it will rescue Countrywide Financial, the nation’s biggest mortgage lender, in a stock deal for $4.1 billion. Market and Economic Recap Business Week Ending January 11, 2008
News from the Commerce Department
Up>–U.S. Trade Deficit: The trade deficit, the gap between imports and exports, jumped by over 9%, a much larger increase than had been expected. Record foreign crude oil prices drove the increase, as the country’s bill for foreign oil climbed to an all-time high of $34.4 billion. U.S. Exports also set a record, rising by 0.4%, but the good news is overshadowed by a 3% increase in total imports of goods and services. With the weaker dollar, demand for exports has grown, providing a boost for U.S. manufacturers and farmers.
News from the Labor Department
No inflation. Import prices remain unchanged for December.
The Stock Market Stocks fell as investor’s fears rose about growing losses in the financial sector, and more major players prepare to announce they will take a big hit from the subprime mortgage debacle. Merrill Lynch & Co, the nation’s largest brokerage, is expected to suffer around $15 billion in losses from mortgage debt, according to the New York Times, and is currently seeking investors to infuse capital and offset its losses. Merrill, along with Citigroup Inc. and JPMorgan Chase & Co. will report results later next week. Gold Rush Gold futures spiked to their highest level ever this week, pushed higher by the weak U.S. dollar and rise in oil prices. …
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