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Economic forecast

Mortgage Rates Climb this week! Interest rates went up this week…

Posted by spencerjanke on February 25, 2010

Ok, so I hate to say I told you so. But, I TOLD YOU SO!!! Interest rates climbed 4 basis points this week. Making the average on a 30 year fixed mortgage 5.15% . So all of you who have been saying, “no, interest rates won’t rise.” You were wrong. Last week, I took a lot of flack for saying when the fed raised the bank rate, that interest rates would immediately follow. I was schooled by a few professionals who informed me the bank rate has nothing to do with consumer rates? Duh, I know exactly what the bank rate is. And I also am a fan of history. So if you look back consumer interest rates always go up after the bank rate goes up.

Interest Rates are on the RISE

So, I am now writing this post to say I told you so.. We all knew interest rates wouldn’t stay as low as they have been forever right? I mean the whole inflation aspect which I don’t even want to get into is another issue. But, people need to realize at some point we are going to start having to pay for all the spending we are doing as a country. One of those ways is by raising rates. Companies will make more money, they can pay more taxes. It is a gigantic cyle, what goes up must go down. Now the thing the media doesn’t want to tell you , because they love to instill fear the society. What goes down, must go up! So, once again I am going to take the standpoint of we are in for a pretty rock road for the next 6 months. But then, I am going to go out on a limb and say we will see an uptick.. Just my opinion.

Now, really fast we need to express the interest rate situation.

  1. Interest Rate went up this week
  2. Interest Rate’s are going to keep going up.. How much? I would say a full point. I wouldn’t be surprised to see interest Rates in the 6% range this summer
  3. Tax incentives are up in April…
  4. Home values for affordable housing are at their low in majority of locations.
  5. Act now, or you will be upset in 6 months, and I will be telling you I told you so again..

I would love to hear your opinion about Interest Rates, so comment email or whatever..

Also if you are looking for a great deal in Utah.. Check out the free list of Bank foreclosures in UTAH

Bank Foreclosure in UTAH


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Fed Raises Bank rate.. Will interest rates follow? INTEREST RATES ON THE RISE?

Posted by UtahCribs, Real Estate, Homes on February 19, 2010

So I am sure many of you have heard the news. The fed announced this morning they are raising the Bank Rate. IF you would like more info on what does that mean, check out this site

What is the Bank Rate?

Do I agree with this article compeltely? No, I don’t. I think just the opposite, I think this means we can expect the Consumer Rate, or interest Rates to follow in the footsteps of the bank rate. The fed also announced they are going to discontinue the purchase of mortgage backed securities. What do you think that is going to do to the market? Don’t you think that will effect the bond market? In turn interest rates will go up..

Interest Rate are on the Rise!

So many people are trying to interpret what this means? Well I am obviously a part of that crowd, but I think in more realistic terms. It is reality they will go up, its just a matter of time.

So for you first time home buyers, take advantage of it now, get a low interest rate, get a tax credit, take advantage of the gluttony of homes on the market…

Utah Bank Foreclosures

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Timeline for the Homebuyer Tax Credit, clock is ticking on the New home tax credit..

Posted by spencerjanke on February 12, 2010

The clock is ticking on the Homebuyer Tax credit. A lot of buyers want to take advantage of the tax credit, however time is not on your side.. There are a few things every buyer should be aware of..

  1. In order to actually qualify to recieve the tax credit, you need to be under contract on the property before April 30,2010
  2. The obvious, buyer need to be pre-qualified with a lender, can you get a loan?
  3. Remember FHA premiums are going up April 2.. If you do not know what this means talk to a professional. It will effect the majority of you.

Great article explainging the Timeline

NOw, you need to make sure you get out there and find the house you all are looking for.. If you are in the market for a deal as most of you are.. Take a look at your local Bank Foreclosures, they have some great buys right now.. Contact a professional in your area to help find that list..

Bank Foreclsoures in UTAH

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What will happen to Real Estate in 2010? Interest Rates 2010? Incentives, tax credits?

Posted by spencerjanke on February 8, 2010

What a crazy time we live in right now.. Every sigle day I am having these conversations with different people about what is going to happen. I will be the first one to admit, “I don’t Know.” How can I possibly predict what is going to happen in the Real Estate Market in UTAH? I am a market expert in My local Salt Lake City, UTAH area! But does that mean I can predict what is going to happen? Can I determine what will happen when Interest Rates go up this Year? Can I predict how the markets will react when the tax incentives expire on April 30th? NO, I can’t.. I can tell you what I am going to bet will happen. But it is just the opinion of a local Real Estate Broker in Salt Lake City, UTAH.

I think we are in for another up and down year, and I will tell you why?

Market Update, interest rates, and tax incentives

Bottom line people, is that as a society we can not afford to keep giving money to people to buy things. IE…. Tax incentives are not going to be around after this spring. The rule says, be under contract in a new home by April 30, 2010 and close by June 30, 2010. Or you will not qualify for the tax credit… If you have questions about it, call me or email me and I will help you out.

Now Interest Rates? You would be blown away at how many people are interested in this subject, the affordablity of a home is tied to your interest rate. Do I think they are going to go up? Yes, Interest Rates are going to go up, I don’t care what you think or why, bottom line interest rates will have to go up in 2010

Ok, now the last thing. Bank Foreclosures in Utah. Do I know where a list of Free Bank Foreclosures in Utah is? Yes I do, all you need to do is go to this website and sign up, they will simply email you a list once a week of the new Bank owned homes in Utah, Check it out easy..

FREE Bank Foreclosures in UTAH

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Mortgage Interest Rates climb.. Interest Rates rose today..

Posted by UtahCribs, Real Estate, Homes on February 4, 2010

If you are contemplating buying a home in 2010 you have a lot more to worry about than just rising interest rates. Yes interes rates are going up, however there are all sorts of other reasons to act now.

Buy a home in 2010 before interest rate go up

There are 4 main reason’s to get out and buy a home today.

1-Fed Deadline -Fed says it is going to stop buying mortgage backed securities by march..
2-FHA Premium Increase – FHA premiums are going up to 2.25 % of the purchase price of your loan.
3-Home Buyer Tax Credits – In may the Tax credit incentives are going to expire
4- Interest Rates.- Interest rates have been consistently going up.

Interest Rate Updates

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Upside down in your home? Salt Lake City Utah Default Homes.

Posted by UtahCribs, Real Estate, Homes on February 3, 2010

It is a commons situation to be in considering todays market. A lot of home owners owe more than their properties are worth.. If you bought your home in the peak of the market, and you did 100% financing. Statistically you are under water.. What do you do?

If you are under water in your mortgage.

Make sure you learn everything you can about your situation.. Some people are just walking away. Is that the best decision? Upside down in your home in Utah? Call us and we will help you learn your options..

Salt Lake City Real Estate Experts

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Interest Rate News. Interest rate predictions.. Up to date news about Interest rates

Posted by UtahCribs, Real Estate, Homes on February 2, 2010

So we all have been watching with intensity about the debacle over interest rates. I am going to try and continue to keep people informed on what is happening with interst rates on a daily basis. You see so many different opinions it is hard to decipher what is really going on.. Not to mention, reading these articles at times makes you feel you need to go back to college, or get out a dictionary to help you know what you just read. So if you have any questions about interest rates, and what will happend to interest rates give me a ring, you can call or email me any time.. Spencer Janke 801-671-7877 spencer@utahcribs.com

Interest rate predictions for 2010

This article is great for prediction in the near future.. The big discrepency between when they will rise is at the center of the debat. But everyone is in agreement that they will go up… Just a matter of when..

Another great article to read, and for that matter a website to continue to check on what is happending is bankrate.com

Check out bankrate.com

This is a great website to breakdown the daily news of the market. It has really helped me understand the news we are hearing.. Hope this helped..

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Economic Cartoons.. The economy sometimes is a joke?

Posted by UtahCribs, Real Estate, Homes on January 30, 2010

This past week has been a long one, and so therefore I was in need of a little pick me up.. These funny economic cartoons make me smile. I hope you all have a wonderful saturday, contemplating the status of our world wide economy.. Good luck

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REALTOR® Magazine-Daily News-Economists: Extend the Housing Tax Credit

Posted by UtahCribs, Real Estate, Homes on September 16, 2009

REALTOR® Magazine-Daily News-Economists: Extend the Housing Tax Credit.

This is a really interesting article for everyone to check out. There is talk of them extending the Tax credit into 2010.. Some Representatives in Washington are lobbying for it to be expanded to all home buyer’s not only limited to the First Time Home Buyer.

Now I think for sure, this would be a benefit to the economy as a whole. Now I know a lot of you that follow me on this site, are nay sayers! But lets think about this for a second! We are going into the winter after one of the biggest downturns our economy has seen since the Great Depression. Now economists have differing opinions about whether we are coming out of the recession or not. My theory comes from the Real Estate side,. since hello I am in the Real Estate Market.. Now in good old Utah, the winter consists of anywhere from 6 inches to 3 feet of snow on the roads. Which usually translates to a slow Real Estate market. Apparently people don’t enjoy climbing over snow banks to get to the front door. Now, what does this mean? Well it means sales of existing homes, and the wonderful new Construction market in Utah is going to see a big dip. And now for my point, our wonderful economy is so media driven the moment the TV, or Internet report that sales are down, it is going to push the stock market down as well. You know the whole domino affect, and there will be a few economist who will say, “I told you so, we are not out of this mess just yet.” Which is true! However it is predictable, that is how it is every winter. Regardless if it is a good market or bad.. So a little help to motivate buyers who are waiting I think is a wonderful idea..

Thoughts on my wonderful Theory??????

Posted in Economy Update., Real Estate Deals, Utah News | 1 Comment »

Rehab Loan’s.. Investor remodel loans.. They are back….!! UTAH

Posted by UtahCribs, Real Estate, Homes on September 11, 2009

The Fannie Mae Home Path & Home Style loans provide excellent financing options for your clients purchasing a new home from the Fannie Mae portfolio of properties, or are buying a new home of any type that needs improvements, enhancements or a remodel.

All three loan products are custom tailored to benefit buyers who don’t have all of the funds required to enhance or remodel the property, but want to enjoy the comfort and increased value from improving the property.

This report will cover both the HomePath Loan, HomePath Renovation Loan and HomeStyle Renovation Loan products. The HomePath products are specific to Fannie Mae owned properties and can only be utilized to purchase these properties. The HomeStyle loan product can be used for the purchase of any home and can also be utilized as a refinance loan to improve or remodel a property the borrower already owns.

The HomePath Loan

This loan offers borrowers an excellent opportunity to purchase a Fannie Mae owned home (HomePath Listing) with only a 5% down payment, a credit score as low as 660 and no mortgage insurance. This loan can only be utilized on Fannie Mae owned properties listed on the http://www.homepath.com web site.

HomePath listings are generally priced 15% – 30% under current market prices for comparable listings and offer buyers an exceptional value. The HomePath loan was designed to help more buyers in the marketplace qualify for these listings and provide you as the agent additional financing tools to sell these properties much faster than a traditional listing.

This loan was developed by Fannie Mae exclusively for the properties they currently own nationwide. The loan allows borrowers with lower credit scores to qualify with as little as a 5% down payment. This down payment can even be a gift from a relative or from the borrowers retirement account.

The loan carries an interest rate which is .50% – 1.00% above current market rates, but does not require mortgage insurance of any kind. This is a major advantage to borrowers who do not have a credit score above 700 – the current minimum credit score required by mortgage insurance companies. The borrowers are able to deduct all of the interest from the loan on their annual tax return and not have to deal with monthly mortgage insurance payments.

For Investors
The HomePath loan will also allow investors to purchase a Fannie Mae owned home with as little as 10% down and no mortgage insurance. The loan can also be utilized by borrowers who would like to purchase a 2nd home – again with as little as 10% down.

HomePath Loan Guidelines – Full Income Documentation

Property Appraisal
Another benefit with the HomePath loan is that it does not require an appraisal of any kind. The offer you submit to Fannie Mae, if it is accepted is the purchase price and not appraisal is ordered on the property. This is for the HomePath loan only and does not apply to the HomePath Renovation loan.

Closing Costs
As part of the offer to purchase the property, you can request that Fannie Mae pay up to 3% of the purchase price for closing closes in the borrower’s behalf. These costs are not guaranteed, but depending on the offer, Fannie Mae can agree
to pay these costs.

HomePath Renovation Loans
This is one of the most unique loans released by Fannie Mae in the past 3 years. It is designed specifically to allow a new home buyer to purchase a Fannie Mae HomePath listing, and finance the improvements the property needs. These improvements can include anything from new windows, siding, a new roof, kitchen and bath remodel or even a new in-ground swimming pool.

This is the best loan available to help you move your Fannie Mae HomePath listings. Many of these listings need help in several different areas. This loan can help your clients get the work done before they ever move in. Borrowers can even finance soft costs such as their first payment while the work is being completed!

This loan allows the client to borrower up to 95% of the home AFTER the improvements have been completed. For example – if a borrower was purchasing a new home and completing improvements on the home, the transaction would look like the following:

New HomePath Renovation Purchase
New Purchase Price $250,000.00
New Windows $10,000.00
New Roof $5,000.00
Landscaping $5,000.00
Carpet & Paint $5,000.00
Total Price & Renovations $275,000.00 Appraised Value – $280,000.00

New Loan Amount – 95% $261,250.00

Borrower Down Payment $13,750.00

In this example, the borrower is able to add $25,000.00 in improvements to the property and only increase their down payment $1,250.00. As long as the property appraises for at least the purchase price and the improvements, the borrower can benefit from only putting down 5% of the purchase price AS WELL AS the improvements to the property.

Additional Benefits
This loan does not require monthly mortgage insurance premium and will allow a credit score down to 660 – 40 points lower then current conforming loans will allow. In addition, virtually every mortgage insurance company in the country has stopped offering mortgage insurance to borrowers with a credit score lower then 700. Your listings can be sold to a broader base of homebuyers.

Mortgage Insurance
This loan Does Not require any monthly mortgage insurance coverage. The borrowers note rate on the loan will be .50% – 1.00% above current market rates, but will not carry a separate monthly mortgage insurance payment.

HomeStyle Renovation Loan

About HomeStyle Renovation
This loan is perfect for any real estate agent that has listings that need work. The HomeStyle loan allows a buyer to purchase any home and finance just about any time of improvements or upgrades they want.

New Home Purchase With HomeStyle Renovation
If you have a listing, or a buyer that wants to purchase a new home but only has enough for the down payment and the home needs some work – this is the perfect loan. Your buyer can remodel the kitchen, the bath, add a new roof, windows, a basement or just about anything you can think of to make the home perfect.

The HomeStyle loan allows the buyer to finance 95% of the value of the property AFTER the improvements are completed. Bids are submitted to the appraiser and the final appraised value is calculated based on all work being completed. The buyer can generally finance 95% of the cost of the improvements and benefit from the equity in the property AFTER everything is completed.

New Home Purchase Expample With HomeStyle Renovation

New Purchase Price $200,000.00

New Roof $5,000.00
New Windows $7,000.00
New Landscaping $4,000.00
Swimming Pool $20,000.00
Kitchen Remodel $8,000.00

Total Improvement Cost $44,000.00

Total Price & Remodel $244,000.00
New Appraised Value $250,000.00

New Loan Amount $231,800.00*
95% of the purchase price and improvements

*The New Loan Amount is based on 95% of the purchase price plus the improvements or the COMPLETED appraised value – which ever is LESS. In the example above the purchase price and the improvements of $244,000.00 is the lower of the two amounts and is used to calculate the new loan amount.

Purchase Benefits
Your client can now finance a majority of the expense of improving or remodeling the home. In the example above, with down payment before the improvements on a purchase price of $200,000.00 would have been 5% or $10,000.00. In the case where $44,000.00 of improvements were added to the property, the down payment was only increased by $2,200.00 – in other words your borrower only needs to put down 5% of the improvements being completed on the property!!

Refinancing An Existing Home
If you have friends, family or clients who already own their home and would like to renovate the property and are tight on equity, the HomeStyle Renovation loan is the perfect solution.

This loan will allow a homeowner to borrower 95% of the value of the home based on the value of the property AFTER the improvements are completed. Again, just about anything that is common for the area can be added or done to the property. Kitchen, bath, additions, sunrooms, pools, spas, basements, roofing, windows, siding, concrete work are all allowable.

Borrowers that have limited equity can benefit from this excellent loan and make their house their dream home.

HomeStyle Refinance Example

Current Appraised Value $200,000.00 – Before Improvements
Current Mortgage Balance $170,000.00

New Windows $7,000.00
Kitchen & Bath Remodel $10,000.00
New Metal Roof $10,000.00
New Patio & Spa $6,000.00

Total Improvements $33,000.00

New Appraised Value $220,000.00

New Loan Amount $209,000.00
95% Of New Appraised Value AFTER Improvements Are Completed

In this example the homeowner is able to remodel the home, complete several different improvements and utilize the value of the home after the improvements are completed – BEFORE – the work has been done. This is totally unique to the HomeStyle loan.

Escrow Account
In the event that there are funds remaining at the conclusion of the work being done on the property, the remaining money is paid to the lender to reduce the principal balance of the loan. There is no cash out available with this loan.

Getting Started
If you have clients that want to purchase a HomePath Fannie Mae listing, get them pre approved first for a HomePath loan before they make an offer. We can have them approved in just a few hours and you can submit an offer with confidence that your clients can and will close on time.

If your clients would like to benefit from a HomePath Renovation loan, the first step is a pre approval. As soon as that is completed, approved Fannie Mae contractors should complete a detailed bid for the work. The loan file is submitted to underwriting with all of the borrowers documents required for an approval, and the detailed bids from approved Fannie Mae contractors.

As soon as the loan is closed, the construction/remodel funds are escrowed and work can be initiated. The contractor can request draws during the remodel or complete all of the work, have an inspection done and receive payment for the work within a few business days.

Start using this loan today to help more clients buy a Fannie Mae HomePath listing! There are several benefits to using these loan programs. The allow lower credit scores, they don’t require your client to have or qualify for mortgage insurance. The HomePath Renovation and HomeStyle Renovation loans also allow borrowers to purchase homes that need enhancements and pay for them with the equity realized in the property.

These are unique, powerful loans that can help you sell more homes, help more borrowers and thrive during this housing market meltdown.

Scott Breen
Banner Mortgage
Direct Line: 801 438-3013
Fax (toll free): 800-369-0715
Cell: 801-558-5817

Posted in Economy Update., Real Estate Deals, Utah News | 2 Comments »