Yvonne's Real Estate Blog

Rates are sitting around 5.25% at par for a 30 year fixed today (good borrower, full doc, good credit, etc...).

We haven't seen this level of rates in five years.

If you are a buyers sitting on the fence, I encourage you to "pull the trigger". The next three weeks may be the best buyer's opportunity we've seen in many years. Rates at historical lows, and a slow Real Estate market could make for the purchase of a lifetime, we may not see this combo of rates and negotiating position again for a long time.

Also, anyone you know who has one of these situations: ARM's, Temporary financing, or anyone with a rate in the 6% and above range should seriously consider refinancing.

We don't know how long this will last. What we do know is that we have an incredible opportunity to lock in rates at historical lows. Don't let this opportunity pass.

Have a fantastic day!

Yvonne Nystrom

253-334-0232

John L. Scott Kent North

yvonnen@johnlscott.com

www.yvonnesrealestate.com

Allen Cripe

Cripe Financial Group

206-714-4633

allencripe@comcast.net

U.S. Department of Housing and Urban Development - HUD

HUD No. 08-180 Amber Lyons (202) 708-0980 www.hud.gov/news/ For Release Tuesday December 2, 2008 HUD LAUNCHES COMPREHENSIVE WEBSITE TO INCREASE FINANCIAL LITERACY, PROMOTE HEALTHY HOMEOWNERSHIP My Money, My Home, My Future WASHINGTON - The U.S. Department of Housing and Urban Development today launched a new, comprehensive website to assist Americans with improving financial literacy, sustaining healthy homeownership and achieving financial security. The My Money, My Home, My Future website provides a range of interactive resources to inform users about the importance of financial literacy, including a Self-Assessment Tool, online games and informative classes. "It is imperative that Americans are better educated about their finances and understand what it takes to be a responsible homeowner," said HUD Secretary Steve Preston. "The resources on the website allow families to plan ahead to make smart choices about their finances and homebuying decisions." The new site provides a wide-range of information about all avenues needed to be successful on the road to greater financial education, including: Building a Financial Foundation; Sustaining Healthy Homeownership; and Achieving Financial Security. One of the most unique features of this website is the Self-Assessment Tool. The Self-Assessment Tool provides an extensive guide to help users learn more about personalized options for purchasing and/or refinancing their home. Users will be prompted to answer a few questions. Based on the answers given, the Self-Assessment Tool lists numerous links to visit on-line to learn more about the necessary and correct steps to own a home, refinance a home, enhance their financial skills, and much more. Some of the other links on My Money, My Home, My Future give detailed information about: 9 Steps to Buying a Home Housing Counselors and Lenders Banking, Credit and Building Wealth Foreclosure Process and Alternatives Refinancing Loans and FHA Insured Loans This new site is also located on www.HUD.gov and www.FHA.gov both in easy to find locations on the main web pages. ### HUD is the nation's housing agency committed to sustainable homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov, www.hud.gov/foreclosure and espanol.hud.gov.

I hope this information is helpful to you! The HUD website has lots of useful information. Spend some time going through it at your leisure.

Have a great day!!

Yvonne Nystrom

253-334-0232

yvonnen@johnlscott.com

www.yvonnesrealestate.com

John L. Scott Kent North

As many of you may know already, the FED just reduced the Federal Funds Rate again substantially, here's the link to the CNBC story: http://www.cnbc.com/id/28254875.

The essense of the story is that they have reduced the Fed Funds Rate to essentially zero, and have committed to doing everything necessary to insure we have a strong recovery from the economy we are in right now.

As many of you have been in my economics discussions, you know that real signs of the direction of the economy come in the form of lagging indicators. The Fed makes a move, then waits (up to three months) to see what effect the change had. They then make another move, then wait again.

Often times (or actually most times), they end up moving further than they actually needed to to create the change they were looking for.

I am not remotely saying they have reached this point, however, I am saying is that I really believe we are approaching the point that we will start to see things change around. We are already seeing it in our local Real Estate Market, with the rates the way they are, we've seen a dramatic increase in buyers willing to pull the trigger and take advantage of the incredible buyers market. I can feel an excitement coming on which I haven't felt all year long.

Again, the time to act on this (better) news is now. I really believe anyone choosing to move to action right now is making a very sound decision. Try not to miss this opportunity.

Here's were we stand on rates, they've been stable for the last couple of days. Remember, these are for good credit, conventional, full doc, good borrower, etc., etc.,

30 year fixed - 5%

FHA 30 year fixed - 5.5%

Jumbo 30 year Fixed - 6.25% (a particularly good bargin given where they have been)

Are they going to go lower? No real way to know. Mortgage rates DO NOT move in direct relation to the Fed Funds Rate. Here's what we do know.... They are just about the lowest now, then they have ever been in history.

Let me know if you or anyone you know want's to take advantage of this market. There are lots of homes in the inventory to choose from. Don't miss this opportunity! Call me now!!

Yvonne Nystrom

253-334-0232

John L. Scott Kent North

yvonnen@johnlscott.com

www.yvonnesrealestate.com 

Allen Cripe

Cripe Financial Group

206-714-4633

NWREporter January 2009

Consumers should save nearly $700 at the closing table, thanks to mortgage reforms issued in November by the U.S. Department of Housing and Urban Development. The long-anticipated changes – the first such revisions in more than three decades – are intended to help consumers shop for the lowest cost mortgage and avoid costly and potentially harmful loan offers.

For the first time in its history, HUD will require lenders and mortgage brokers to provide consumers with a standard "Good Faith Estimate" (GFE) that clearly discloses key loan terms and closing costs.

In announcing HUD's final changes to the regulatory requirements of the Real Estate Settlement Procedures Act (RESPA), HUD Secretary Steve Preston said that changes in the housing market and increases in home foreclosures demand action. He expects the new regulations will bring more clarity and certainty into the market.

Preston explained the new GFE will be given to borrowers at the time an estimate is provided. It will more clearly answer several key questions consumers have when applying for a mortgage:

• Is the interest rate fixed or can it change?
  
• Is there a pre-payment penalty should the borrower choose to refinance at a later date?
  
• Is there a potentially crippling balloon payment?
  
• What are total closing costs?

The new standardized GFE will offer consumers more certainty about the loan they’re agreeing to, while enabling them to shop more effectively for the lowest cost loan.

Last March, HUD proposed reforms to the longstanding regulatory requirements of the Real Estate Settlement Procedures Act (RESPA) by improving disclosure of the loan terms and closing costs consumers pay when they buy or refinance their home.

Last May, HUD extended the rule's comment period to June 12th to allow for more opportunity for comment on the Department's proposed GFE form. HUD received approximately 12,000 comment letters. Upon considering the feedback, the Department made considerable modifications, including shortening the form.

Brian Montgomery, HUD's Assistant Secretary of Housing, Federal Housing Commissioner, said, "I am convinced that we successfully balanced the needs of consumers with those in the business of homeownership. None of us can lose sight of the fact that millions of Americans simply don't understand all the fine print of their mortgages and this, in many respects, is at the heart of today's mortgage crisis."

This new, final RESPA rule is effective 60 days after publication. HUD will require the new standardized GFE and HUD-1 Settlement Statement beginning January 1, 2010.

"It has been a long road but today we can finally announce a better way to buy homes in America," said Preston. "Consumers need and deserve to know what they're getting themselves into before they sign on the dotted line. After carefully considering the concerns of consumers and the different businesses in the housing sector, we have developed an approach that empowers the average family to shop for the most appropriate loan to meet their needs."

Before going into this weekend, I wanted to give you all an update on rates, and thoughts on where we stand.

As of close of business today, we were right around 5 1/8% on a conventional 30 year fixed, good borrower, good credit (etc, etc).

There is a lot of conversation going around since the release of the rumor about government sponsored 4.5% mortgages. Of course, 4.5% mortgages would be fantastic; unfortunately, as of right now, it is nothing but rumor and innuendo. We have no idea what these rumors will really mean, we have no idea what kind of products or transactions they could be applied to, and we have no idea what level of qualification they would need. Frankly, as of right now, we have no idea if they will even actually even happen.

Here's what we do know:

Bond traders and mortgage makers are already pricing these potential rates and rumors into the market. We had the largest weekly fall in mortgage interest rates in the history of our country this week. Essentially rates fell from 6.25% to around 5.125%. This is an incredible opportunity and I would suggest highly urging anyone who is in the process of making a decision to take advantage of the unbelievable window we have been given. 5.125% is very close to the lowest mortgage interest rates we have seen in history.

Whenever faced with an important decision, I always quickly look at risk versus reward.

What's the reward of moving forward? Securing an interest rate at essentially the lowest levels ever offered, and doing it at a time which real estate has the best pricing we've seen since 2005.

What's the risk? The possibility they could fall another 1/2; IF the government actually enacts a program, IF they can come to some level of agreement, IF that rate is offered for the program a borrower is looking for, and IF they qualify for that rate. 1) Compared to the level they just fell from, 1/2 a percent is almost nothing. 2) If rates continue to fall, we can always, and at almost any time, refinance them into the lower rate at very little cost

The reality is that there is very little risk in securing mortgage money in the low five's.

What an incredible rate position you are in right now, and what an incredible negotiation position you happen to be in right now.

If you are thinking of buying a home or moving up to a larger home, or downsizing, this would be an opportune time to move forward.

Call or email me if you have any questions. I have excellent mortgage lenders that I work with who can give you all the best information for your circumstances.

Yvonne Nystrom

253-334-0232 Cell

yvonnen@johnlscott.com Email