Golden Nuggets of Opportunities in Foreclosures

Sometimes someones misfortune is another persons gain. In the case of foreclosures this holds true, and first time home buyers are the ones who are truly benefiting from this unfortunate yet fortunate situation. With mortgage rates at their all time lows, the $8,000 tax credit and the great deals on foreclosures this is certainly a first time home buyers goody bag of golden opportunities. Check out the below video from CNN about buying foreclosures/Real Estate Owned Properties.

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Market Observation: Consumer Confidence Rises

Photo by bretac on Flickr.

It’s true, the market is on its way up, and if it hasn’t completely bottomed out, it cannot get much worse. Mortgage rates of 4.7%? At these rates, anybody eligible would jump on the opportunity. Based on numerous surveys, people are becoming more confident by adamantly applying for mortgages. In conjunction with the increase in consumer confidence, interest rates are nearing historic lows, and prices have dropped substantially. It would be unrealistic for anyone to think that the economy will continue to drop so drastically, especially since sales and pending sales of homes have increased, and a recent report by NAHB testified that shoppers’ visits to new houses for sale are “on the rise.” Nobody can ever predict the absolute bottom, or the exact top of the market. Now’s the time; things can only get better. In the past, our economy experienced similar signs during a recession before the market made a turn-around. If you have the means, you better hop on the train before it’s too late, because before you know it, the prices of homes will once again sky rocket….

Home Builder Confidence Posts Biggest Gain In Five Years [NAHB]

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A New Born Baby Sparks a Homebuying Conversation

Photo by tsnsak on Flickr.

I was attending my good friend's new born baby's bris, and even at an occasion like that discussions about the current economy come up in conversation somehow. Don't get me wrong, I don't mind talking about what's going on in the world today and hearing other peoples perspective on it, but at that moment I was more engaged by some of the cute girls that were there and obviously the delicious food that was talking to me...it was saying "Get In My Belly". Anyways, I do remember however, a friend of mine saying to me in his thick hilarious Russian accent, "Bro, my friend just bought a house and locked into a 4.75% 15 year fixed rate mortgage and he was so happy that his monthly mortgage payments were so cheap." Reiterating what I've been blogging about recently, my little Russian friend was also saying how his friend was waiting for the right time to buy a home and when mortgage rates plunged he did not hesitate to jump on the opportunity to buy a home and how he thought it was such a great investment. The reality is, that housing affordability is at an all-time high and mortgage rates are still extremely low; therefore if you are looking at this as a long term investment there is no reason you should wait to purchase a home. These are just some words of comfort for anyone who is on the fence about buying a home.


Source: National Association of Realtors, via Haver

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NY Times and SIREN See Eye To Eye

Photo by lumaxart on Flickr.

I knew when I first started SIREN I was on to something. There have been many sources lately that are validating my thoughts on the real estate market. If the NY Times and I can see eye to eye, there is no reason you shouldn't either. It's ironic, but the real estate market did a complete 180 and the demographic of people who are brave enough to buy a home are not your typical Wall Street professionals with high bonuses that suffered huge stock losses, but rather the average day person with a modest income. According to Jessica Armstead, a broker at the Corcoran Group, there has been recent influxes of buyers in New York looking for apartments and homes that were not seen in previous months. This makes sense when you take into account that a large number of those people are first-time home-buyers and have seen home prices decline faster than the rents they pay. With 30 year fixed mortgage rates around 5%, steep depreciation in home prices and the tax incentives available, why would you waste your money on rent when your mortgage payments may be comparable to your rental payments. The biggest uncertainty for buyers is whether prices will decrease further, but I think there are a number of other variables that people overlook, which I mentioned above. If you break it down, even if prices go down further and mortgage rates start to creep back up, your interest payments will offset the savings you make on a lower priced home. I believe your decision will be based on various life scenarios and I’m curious to see over the next few years the people who will prevail and come out on top. The NY Times article below has some great examples and stories of buyers that were brave enough to look past the uncertainty of the real estate market and feel comfortable in purchasing a home.

For the Brave, the Moment Is Now [NY Times]

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Record Breaking Low Mortgage Rates Strike Again!

Photo by fpsurgeon on Flickr.

Government sponsored mortgage lender Freddie Mac said Thursday that fixed rates on 30-year mortgages averaged 5.01% for the week ending Jan. 8th. That's down from 5.10% last week and well below 5.87%, which is where the rate stood at this time last year. The 30-year fixed rate mortgage has not been lower since Freddie Mac started conducting the survey in 1971.

I know some of you may be thinking...yea, yea, yea...blah, blah, blah...like we haven't' heard this before. Well, I'm going to conduct a little math lesson to show you your cost savings if you purchase a home now.

Loan Amount =$300,000
30 year fixed rate (Current)= 5.01%
30 yr fixed rate (Oct 2008) = approx. 6.51%

Approx. 30 Yr. = 383,344 - 280,428 = $102,916
Cost Savings

Avg. Yearly Cost Savings = 102,916 / 30 = $3,431

Avg. Monthly Cost Savings = 3,431 / 12 = $286

I love math because it says it all!!

Mortgage rates dip to new all-time low [CNNMoney]

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All This Money and No One To Give It To

Photo by nomadic homemaker on Flickr.

Apparently what's wrong with the real estate market today is not so much the unwillingness of banks to loan money, but rather people's unwillingness to ask for it. There are billions of dollars that the FHA is trying to loan home buyer's, but people still aren't biting. With mortgage rates as low as they are, even if you can't afford a 20% down payment and have to pay PMI, the net payment is virtually equivalent to the 6%+ 30 year fixed rates of only a few months ago. And if you can afford the 20% down payment, most people are too scared to jump into the housing market and would rather sit on their cash rather than live in it.

Either way, you can't argue that home prices around the country are at their lowest levels in the past few years, with some case by case exceptions. If you are in the market, now is the time to kick it into high gear and start to seriously look. We are sitting on 5% 30 year fixed rates with no points today and those numbers are looking like they will come down even further. We have record low mortgage rates. We have record levels of housing inventory. We have record levels of foreclosures and bank owned properties and we still don't have people buying. It's amazing that the FHA is having such a tough time finding a home for all that money. - By special guest blogger Adam Steinhandler

Home Buyers Can Easily Find Money for Mortgages or Refinancing [KnowledgePlex]

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Opportunities are Knocking at Your Door at the Estates at Opal Ridge

Photo by SIREN on Flickr.

I just want to thank Google for being a blogs best friend. Apparently the sales team over at Opal Ridge were googling the development's name, and they came across the posts I did on them. They were very appreciative and sent me some more information about their new development that I would like to share with y'all. There was something endearing about the brochure they sent me, which is a good reflection of the development. I stopped by Opal Ridge the other day and with only 9 of the 22 homes left, it's only a matter of time before they are completely sold. By this point, I'm sure I mentioned the benefits of the low mortgage rates, tax incentives and reduced home prices many times that it's been instilled in everyone's brain. Coinciding with the monetary benefits, you should not overlook the intrinsic feeling you obtain by owning a family-oriented Opal home. The brochure below outlines your potential savings made available by the government and the great amenities that Opal Ridge has to offer.

(Click on thumbnails to view original size)

or
Download Opal Opportunity Knocks Brochure [PDF]

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Buy or Refinance; Take Your Pick! Record Low Mortgage Rates!

I personally can't emphasize enough that it's a buyers market, so I'm bringing in heavy weight hitters, Reuters, to substantiate my views. Can you believe 30 year fixed mortgage rates are at their lowest in 37 years! If you've been waiting to refinance your home, so you can put extra money in your pocket for savings and investments, or even to spend money as a consumer, both will strengthen buyer confidence and stimulate the economy...do whatever floats your boat because either way your money can start circulating more effectively. And first-time home buyers, please take the bull by the horns and take advantage of everything I've been telling you since I've started this blog. The reality is you still need to have good credit and a stable job to get a mortgage. Watch the below clip...it's quick and straight to the point.

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