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So many lenders to choose from when trying to finance a home!

by The Cincinnati Team

A headache is sure to follow as soon as you sit down to assess how or if you can buy a new home.   Where will you find the funds to do so and who will you ask to help lend you money?  Hopefully, you can gain some insight on lenders from the following article from the website of Home Builders of Greater Cincinnati and this process may feel less daunting!

http://www.cincybuilders.com/financing.html

Please feel free to call us with any questions and visit our lenders page where other clients have gone for financing assistance! 

Real Estate and Your Estate Plan: How Does It Work?

by The Cincinnati Team

Things you don't necessarily want to think about, but should!  Here is an interesting article regarding your real estate and estate planning: http://www.realtor.com/advice/finance/real-estate-and-your-estate-plan-how-does-it-work-2/

 

Great Time to List Your Home - Low Inventory and Low Interest Rates

by The Cincinnati Team

 

INVENTORY, RATES, DEMAND PUSH PRICES HIGHER

Low interest rates have triggered strong buyer demand across the country, and market activity has been pushing prices upward. Freddie Mac reported another record low for 30-year, conventional fixed-rate mortgages when the national commitment rate dropped to 3.35 percent in November. The rate was 3.99 percent at this time last year.

As inventory continues to drop, we can expect to see more pricing adjustments as buyers compete for the same homes. Time on the market has dropped to 70 days in November, and available inventory has fallen another 3.8 percent to just over 2 million existing homes for sale. At today's sales pace, existing-home inventory will be exhausted in 4.8 months, creating the lowest housing supply since September 2005.

Regionally, existing-home sales rose 7.9 percent in the South, 7.2 percent in the Midwest, and 6.9 percent in the Northeast. Existing-home sales in the West were up 0.8 percent in November, representing a 4.4 percent increase over 2011 levels for the region.

 

Homes are on Sale in Cincinnati

by The Cincinnati Team

Homes are on Sale in Cincinnati!

Low mortgage rates on Cincinnati homes make all homes seem like they are on Sale!  As the inventory starts to get snatched up this Spring, buyers feel like they are getting bargains.

Not only are they looking at the price of the home they are buying, which may be as low as prices in the 2000-2003 time frame, they are looking at the interest rates.  Home affordability is setting all time records.  Prices are down, but the interest rates are making even a bigger difference in your wallet.

Currently, the interest rate is under 4% for a 30-year fixed rate.  When you compare it to historical average rates, it is pretty unbelievable.  

SupposeCincinnati mortgage rates you have a $1000 payment for principal and interest:

  • Historical Average Rate (8.75%): a $1000 monthly payment allows you a $127,113 purchase price for your home.
  • Today's Average Rate (3.66%): A $1000 monthly payment allows you a purchase price of $218,329.

So, what are you waiting for...it's time to buy. Whether you are a first time buyer or a move up buyer, this may be the opportunity of your lifetime to move into your dream home.

 

Fall 2011 Trends in Mortgage Lending

by The Cincinnati Team

Lending and Buying Trends                             

Mortgage backer Freddie Mac reported that mortgage interest rates fell to a record low in September. The average commitment rate for a 30-year, conventional, fixed-rate loan dropped to 4.11 percent in September, down from 4.27 percent in August.  September's rate was almost a quarter point below 2010 interest levels when similar mortgage loans were offered at 4.35 percent.

Despite the low interest rates, contract failures remain double of what they were just last year. Contract failures - caused by issues with credit, loan underwriting, or appraisal - reached 18 percent in August and September. NAR President Ron Phipps would like to see more access to credit.  "All year we’ve been discussing the fact that many credit worthy home buyers are being denied mortgages,” he said. "We need to remove the roadblocks to a housing recovery."

Investors accounted for 19 percent of September transactions down slight from 22 percent in August.  First-time buyers represented 32 percent of existing-home purchasers, while repeat buyers made up the balance. 

The Low Cost of Financing

by The Cincinnati Team

The Low Cost of Financing                                                 

According to Freddie Mac, the average commitment rate for a thirty-year, conventional fixed-rate mortgage loan was at 4.95 percent in February, which is down from 4.99 percent in February 2010. Home financing costs are at historic lows, making home ownership a reality for many first time buyers! Many experts see rate increases on the horizon, as our nation seeks to balance spending. If you are considering a home purchase or a refinance, be sure to work with a loan officer who understands your needs, has a reputation for excellence, and is able to fund your property in a timely manner. A little homework can save you thousands of dollars. Contact us today for our list of local recommended mortgage lenders.

Cincinnati Housing Affordablility Rankings Released

by The Cincinnati Team

Home Affordability Rankings Released                             
Good News Cincinnati Buyers...more that 72 percent of homes sold between April-June, 2010 were affordable to families earning the national median income.  This data tracked by the National Association of Home Builders indicates that this is the second highest reading in the survey's history.

Be glad you don't live in the highest priced areas...10 out of 13 of which are located in California.  The highest markets are in New York City, White Plains, NY and Wayne, NJ. There, only 20% of homes are affordable to families eaning the local median income. The lowest priced markets are Monroe, MI; Bay City,MI; Mansfield, OH; Springfield, OH and Syracruse, NY.

You may be wondering how they determine these numbers.  The home affordability index is calculated based on the combination of home prices and mortgage rates.  And, of course, it makes your home more affordable.

Cincinnati is especially affordable as well.  We currently rank 46th nationally.  88.4% of our homes are considered "affordable"...meaning that the family earning the median income can afford to buy a home.

Should We Refinance?

by The Cincinnati Team

I refinanced my house nearly 6 months ago...very excited at how much I was able to reduce my payments.  Now, I'm kicking myself because I did not get the lowest possible rate...the rate available today!

If you missed the refinance boom of November, 2009, you can now take advantage of the lowest rates in the past 40 years.  How do you decide if you should make this move?

Typically experts say that you need to look at what the percentage interest rate will adjust to, preferably at least one percent below your current interest rate.  Secondly, you need to consider how long you expect to stay in your current home.  Usually, if you stay at least 2 years, you will come out ahead in the process (because you need to look at the amount saved compared to the closing costs.

What should you expect in refinancing today?  Yes, loans are harder to get today.  Banks are investigating your finances to the finest detail. Rates will be dependent upon your credit score.  The type of rate you would have gotten in 2007 with a 640 credit score, now requires a 740 credit score.  As a result, plan on the process taking 5-8 weeks.

Appraisals are sometimes a surprise.  You need to look carefully at how much equity you have in your home.  If you did a 100% loan in 2007, you probably do not have enough equity built up to get a loan today.  For most of us, even though we know that the news is that prices have gone down, we tend to not think that our personal house's price has gone down.

Consider you debt.  No matter what, it is important to look at our total debt in making credit decisions.  Most lenders do not want you to have a home loan that is higher than 25% of your income.

Compare lender's closing costs as well as interest rate offered.  There are wide variations in closing costs from one lender to another.  Check it out before you actually decide on your lender.

Good luck...I hope you can save 100's of dollars!

Mt. Adams Market Snapshot - May, 2010

by The Cincinnati Team

Homes and condo sales continued at a brisk pace in May, 2010 in Mt. Adams.  6 homes closed in the month of May.  There are currently 4 homes pending closing and 40 hMt. Adams Market Snapshot - May, 2010omes and condos that are actively listed for sale.

 

 

 

 

 

 

 

 

 

 

Mt. Adams is one of the few areas of Cincinnati showing signs of rebounding. Prices so far in 2010 are significantly above last year and 2005.  Most homes in Cincinnati are currently averaging below prices sold for in 2005.  This is causing difficulties for people wanting to refinance in this time of extremely low mortgage rates.  It is also a problem for those with little equity in their home, who need to sell because of a relocation or change in family circumstances.

According to Credit Suisse's monthly survey, traffic levels (number of visitors to homes for sale) have been slower in May.  This is caused by the end of the homebuyer tax credit.  It forced many buyers to buy ahead of what might have been their regular time schedule. Low traffic levels may result in a longer time to sell a house and price reductions.

The Cincinnati Multiple Listing Service reported an overall uptick of 25% from May of 2009 to May of 2010 on the number of homes sold in the region.  That is more than the 19% reported for nationwide home sales.  June sales are expected to also remain strong as the last of the tax credit homebuyers close on their homes.

Cincinnati Area Board of Realtors Releases February Sales Data

by The Cincinnati Team

Inclement wintry conditions, throughout most of February, affected local sales in Cincinnati according to the Cincinnati Area Board of Realtors.  Sales (closings) fell 17.45% for the month.Cincinnati Single Family and Condo Sales - 2009-10

Additionally, buyers backed off for a few months around the holidays based upon the extension of the home buyer tax credit program.  While closings backed off, pending sales (contracts written) increased 7.8% over February a year ago. 

Year-to-date local sales for 2010 were off 12.96%, but gross dollar volume was up 1.54%.  Over the January-February period, the average sale price is up 16.67% compared to the same period in 2009. Much of this can be attributed to the large number of lender-involved sales in 2009, nearly 44% of all sales.

Reasons for the strength of this year's market include:

  • Ample inventory giving buyers a good selection
  • Optimum mortgage rates, just over 5%
  • Federal Tax credits of $8000 for first-time buyers and $6500 for repeat buyers. (contracts must be completed by April 30 and closed by June 30)

When looking at the entire state of Ohio, there was a 3.5% decline in the number of sales.  The average sale price increased 12.4%.  And the total dollar volume increased 8.5%.  February was the fifth consecutive monthly gain in average price for Ohio.  This indicates that prices are stabilizing, benefiting current homeowners.

Displaying blog entries 1-10 of 23

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