While Michigan, Maine and Rhode Island are losing a small percentage of their residents, Texas added the most new residents to their population in the past year. One reason the population keeps increasing in Texas is because the housing market has remained fairly stable compared to other states, such as coastal ’sand states.’ There wasn’t a boom-and-bust housing cycle that devastated Texas like there was in many other states. In the past ten years, Texas has added 3.9 million more residents and this will continue to rise. Contact us today: 214.923.0261 or email us: info@archwoodproperties.com www.archwoodproperties.com
December 30, 2009
Everything is Bigger in Texas!
December 28, 2009
Best Bang For Your Buck: Home Upgrades
With home resale values still in a slump, there are a few cheap improvements you can make to the exterior of your home to up the sales price. The cost of these projects will be minimal when compared to the higher price tag on your home. The most valuable exterior upgrade has come from replacing doors, windows and siding or adding additional space to your deck. There are plenty of renovations you can do to the interior of your home, such as attic-to-bedroom transformations and kitchen remodels {which are the two most valuable interior projects}, the exterior offers the first impression to what buyers think of your home. Start with the simpler, cost-effective projects on the outside to start off on a positive foot with potential buyers. Contact us today: 214.923.0261 or email us: info@archwoodproperties.com www.archwoodproperties.com
December 22, 2009
What to know about Real Estate in 2010
1. Prices to bottom: After three years of continuously falling prices, homes will finally hit rock bottom in 2010. Projected bottom is expected to occur in the third quarter.
2. Mortgage delinquencies up: With the unemployment rate significantly elevated and an expected increase in the beginning of 2010, many borrowers won’t be able to meet their payment deadlines until the job market stabilizes.
3. Foreclosures move upstream: The number of foreclosure sales will increase to nearly 2 million in 2010 and the trend of the fancier, more-desirable homes in foreclosure will continue.
4. Mortgage rates to rise: Expect rates to rise to 5.5% by mid 2010 and to nearly 6% by the end of the year.
5. Buyer’s market remains: With the prices of homes still falling, historically low interest rates and the number of available houses on the market, buyers still have the power in this market.
6. Modification plan could be modified: The government may move next year to overhaul its modification program in two ways: improving troubled borrowers’ negative equity positions by writing down some of the mortgage principal, and helping to turn troubled homeowners into renters.
7. FHA lending standards will increase: For those who had nowhere else to turn for a mortgage loan but to FHA, they better step up to the plate. Even FHA will tighten their restrictions on who is eligbile for loans.
8. Tax credit available until June: New homeowners have until June to close on a primary-residence property in order to receive the $8,000 tax credit. Current homeowners are alloted $6,500 for purchasing their next principal residence.
9. Markets will vary significantly by region: Rather than looking at national sales prices and markets, look more towards your local numbers to get a better idea of what you can expect.
Contact us today: 214.923.0261 or email us: info@archwoodproperties.com
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December 21, 2009
Beware of First Premier Bank-Issued Credit Cards!
Beginning February 2010, a new regulation will set in place to put a cap on annual credit card fees to only 25% of the card’s credit limit. In order to make up for lost revenue, sub-prime credit card companies such as First Premier Bank, are upping their interest rates to unbelievable amounts. FPB’s APR has skyrocketed from 9.9% to a whopping 79.9%. What’s even more shocking is that they’re targeting those with bad credit scores, typically restricting them from getting other lines of credit. FPB claims this is only a test and aren’t for certain that such rates will remain so high. This rate increase may certainly be a devastating blow to those who are at-risk financially and rely so much on credit.
Contact us today: 214.923.0261 or email us: info@archwoodproperties.com
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December 17, 2009
Happy Holidays from Citigroup!
Citigroup is giving 4,000 borrowers a break for the holidays as they curb foreclosures an evictions for 30 days. Starting today, this temporary relief will run through January 17th but is only for those who have loans owned by Citigroup. While some borrowers make payments to Citigroup, their loans may be owned by other investors and therefore they won’t benefit from this relief.
This is an effort to allow families to worry as little as possible during the holidays but to instead dedicate their energy to spending time with family. Currently, there are already 2,000 homeowners who have scheduled foreclosures and another 2,000 who have notices coming. For these Citigroup borrowers, at least they will be able to spend the holidays in their own home.
Contact us today: 214.923.0261 or email us: info@archwoodproperties.com
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December 16, 2009
Understanding the Making Home Affordable Program
The Making Home Affordable program urges popular lenders, and even some local loan servicers, to lower interest rates for existing and refinanced mortgages, but not the principal. During a trial run, only 0.2% of homes enrolled in the program made this a permanent status, but the goverment is hoping to increase that conversion rate to nearly 58% of homes enrolled by the end of 2009. This program is designed to only help the moderately troubled and not those in dire need of assistance, such as those who have been laid off without any savings for a backup plan. The idea candidate for this type of program is one who is currently employed but their mortgage payment is just too high for them to tackle.
Is this an option for you? Read the guidelines.
Contact us today: 214.923.0261 or email us: info@archwoodproperties.com
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December 15, 2009
Before Purchasing a Home, Ask Yourself These Questions!
If you’re not sure if the time is right for you to buy a home, consider these questions.
Q: Why are rates so low?
A: Since January, the Federal Reserve has been purchasing mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae in an effort to stabilize the housing market by making homes more affordable for consumers. The Federal Reserve Bank of New York, which is managing the program, plans on purchasing $1.25 trillion of securities. Q: Are rates expected stay this low?
A: Don’t count on it because the lending landscape is likely to change next year. When the purchase program ends in March 2010, the interest rates will probably be on the rise again. It’s been speculated that rates will increase over the next 30 to 45 days, even.Q: Why do different mortgage surveys come up with different average interest rates?
A: It depends on which lenders are in their sample, when the survey was taken and whether the rates quoted are the posted rate, the application rate or the commitment rate. Also, some surveys take into account the points paid to secure the rate. Regardless of the survey, the general consensus is that rates are ultra-low right now and may be the lowest the market will see.
Q: What else does a consumer need to know?
A: The lowest rates are offered to the most credit-worthy customers who can make sizable down payments. Shop not just for the interest rate and the points involved but also for the fees involved, which can vary widely from one lender to another. If you’re refinancing, remember the bigger the loan, the greater the payoff for finding a lower interest rate. Savvy customers put in their paperwork with a lender and set a “strike” interest rate at which to lock in the loan, a good move considering rate volatility. Several refinancing calculators are available online that let borrowers plug in all the required numbers and determine the monthly savings and how long it will take to recoup the expense of a refinancing.
Q: So is now the best time to buy a home?
A: It depends on personal situations. Homebuyers certainly have a lot of factors working in their favor right now—low interest rates, plenty of marked-down homes for sale and an extended and expanded federal tax credit that will expire in the spring.On the flip side, there’s growing sentiment among analysts that housing prices, which are showing ever-so-minor improvement, may fall further. The reason? Lenders are expected to get better at determining which borrowers will qualify for loan modifications. That means lenders also will get faster at moving homes through the foreclosure process.
Contact us today: 214.923.0261 or email us: info@archwoodproperties.com
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December 14, 2009
Home Equity Line of Credit
Just like the real estate market skyrocketed a few years ago, so did the home-equity lines of credit. But when the real estate market crashed, the HELOC followed the wave right back down. Like home sales, once the economy stabilizes, the HELOC will once again be easily available. While you won’t be able to borrow at as low of rates as once before, it will still help out tremedously. Check out some tips for borrowing a home equity line of credit.
Don’t borrow the max
Most lenders won’t approve a line that brings your total housing debt to more than 80% of your home’s value, and you’ll need a minimum 740 credit score to get that much. But there are good reasons to borrow less. You should aim to keep your total monthly debt payments at no more than a third of your take-home pay. Keep in mind that as the economy recovers, HELOC rates will rise too, so borrow only what you could keep up with if rates jump. If you were to take out a $75,000 HELOC today, for example, you’d owe $344 a month in interest; if rates rise a couple of percentage points the monthly tab will jump to $469.
Use it the right way
By now you almost certainly know that using your home-equity line for frivolities like vacation packages and plasma screens is asking for trouble. Other traditional uses may or may not still make sense:
Home improvements. Tapping your HELOC to fund necessary projects like a roof replacement is still worthwhile: You can deduct interest on up to $1 million when you use HELOC funds to improve a first or second home, which in turn sharply lowers the real cost of the loan. Renovations that won’t necessarily pay for themselves, like a media room or a deluxe kitchen? Take a pass.
Car loans. At a 7.3% rate, a three-year new-car loan costs a lot more than a line of credit. A HELOC can be a good substitute — as long as you expect to pay it back within a few years. You may be able to write off the interest. Though the rules are complicated, in general you can deduct interest on a HELOC for up to $100,000 of non-home-related uses.
Student loans. Max out government-backed Stafford and PLUS loans first. The interest on these loans is usually tax deductible, and they often offer flexible repayment plans. But if you have to take a private loan, a HELOC can be a cheaper alternative.
Small business. Entrepreneurs have long used HELOCs as easy business lines of credit to smooth out bumpy income. Steer clear of that unless you’re confident the business is solid, says Newtown, Pa., financial adviser Jonathan Heller.
Make sure you keep it
If you’re going to use a HELOC as an emergency fund, you have to make sure your line isn’t pulled out from under you. Most banks have stopped freezing existing HELOCs, but that could happen if real estate values drop in your neighborhood. Your best defense is to use your line regularly, even if you take out just $500 at a time. Even during the worst of the credit crisis, issuers weren’t freezing or closing HELOCs that were in use as long as the homeowners weren’t underwater.If you think you’ll need to use your HELOC in a few months and are concerned that it could get chopped, borrow the funds now and park them in an FDIC-insured account to keep them safe. Then start paying the loan back ASAP.
Contact us today: 214.923.0261 or email us: info@archwoodproperties.com
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December 11, 2009
Tips for Holiday Moving
- No matter where you’re moving to or from, don’t pack all your warm clothes away.
- Plan for winter weather by keeping a shovel handy for any last minute snow removal on either end of the move.
- Make sure you have your utilities–especially the heat–arranged in advance in your new home.
- As you pack, make sure holiday decorations will be easy to find. When you arrive in your new home, make putting them up one of your first unpacking tasks to make the rest of the moving process cheerier.
- If you’ll be on the road on the day of a holiday, consider planning a mid-move stop at a friend or family member’s home to spend the day celebrating.
- If you’ve moved away from loved ones, use technologies like Skype or Google Video and Voice Chat to keep in touch.
- Buy holiday presents before you leave and pack them with the rest of your things, or order gifts online to be delivered to your new house. This will also reassure kids that Santa definitely knows your new address.
- The closer your move is to the holidays, the crazier traffic on roads and in airports is likely to be. Keep this in mind as you’re planning your timeline, and adjust accordingly so you don’t end up doing a “Home Alone”-style airport sprint.
- Once you’ve arrived, take a walk in the winter wonderland and enjoy the hustle and bustle of the holiday season. There are likely to be many holiday-related community events that provide a perfect chance to get to know your new neighbors and hometown.<
Contact us today: 214.923.0261 or email us: info@archwoodproperties.com
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December 10, 2009
Cash For Caulking!
On Tuesday, President Obama proposed a plan that would reimburse homeowners for the 50% of the cost to installing energy-efficient appliances, windows & insulation. This rebate is included on the replacement of heating and cooling units, washing machines, dryers, refrigerators. The rebate caps at $12,000, meaning if you were to spend $24K in the included energy-efficient home improvements, you’ll receive a $12K rebate. There hasn’t been any talk of income restrictions, and for right now, it looks likely that there won’t be any. If you’re thinking of replacing some appliances in your home or insulating those drafty areas, follow this plan closely…you may just be fortunate enough to half of the amount you originally thought.
Contact us today: 214.923.0261 or email us: info@archwoodproperties.com
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