Posted on 25th March 2011 by Anthony in Mortgage Rates
15-Year Fixed, Amortization, Arizona, Arizona real estate, Casa Grande, casa grande real estate, Maricopa, Maricopa real estate, real estate
It’s a great time for MAricopa home buyers and homeowners to look at the 15-year fixed rate mortgage. Arizona mortgages look cheap, and that makes it a double wammy for Arizona real estate and Maricopa real estate.
According to Freddie Mac’s weekly Primary Mortgage Market Survey, the relative “discount” of a 15-year fixed rate loan as compared to a comparable 30-year product is the largest in recorded history. The interest rate spread between the two benchmark products is now 0.77%, nearly double the recent, 5-year average of 0.44%.
Despite its lower rates, however, homeowners that opt for a 15-year fixed mortgage should be prepared for higher monthly payments. This is because the principal balance of a 15-year fixed is repaid in half as many years as with a 30-year amortizing product.
The payment increase is 41% higher at today’s rates. If you can manage that, though, you’ll reap dramatic interest payments savings over time. For each $100,000 borrowed at today’s market interest rates, your mortgage interest costs on a conforming 15-year term mortgage will be lower by $56,000 versus an identically-structured 30-year term. The more you borrow, the more you save.
That said, not everyone should use the 15-year product.
One reason you may want to avoid 15-year products is because the higher payments may lead to financial stress. Unless your monthly income far exceeds your monthly debts, choosing a 30-year product may feel safer for you.
Another reason is that, with less mortgage interest paid, 15-year mortgages don’t allow for as many mortgage interest tax deductions. This can have tax implications to you each year. Or, maybe you prefer to have your home leveraged, investing “spare dollars” in stocks and bonds.
These are all legitimate cases to stick with a 30-year term, but if you’ve ever explored the idea of using a 15-year fixed rate mortgage for your home, today, the math is in your favor. Talk to your loan officer before the rates start rising. If you are looking for Arizona real estate or Maricopa real estate visit www.pru1re.com for all of your Arizona real estate information. If you need an Arizona mortgage click here.
Posted on 17th March 2011 by Anthony in Housing Analysis
HMI, Homebuilders, Maricopa, Maricopa Arizona, maricopa homes for sale, Maricopa real estate, NAHB, New Home Sales, new homes, new homes Arizona, New homes Maricopa
Homebuilders are optimistic about the housing market this spring, relative to recent months. Maricopa Home building had been steady for Maricopa real real estate.
According to the monthly Housing Market Index as published by the National Association of Homebuilders, after 4 straight months of reading 16, March homebuilder confidence ticked 1 point higher to 17.
It’s the highest confidence reading in 10 months.
A value of 50 or better indicates “favorable conditions” for home builders; with more builders viewing sales conditions as “good” than “poor”.
HMI hasn’t read higher than 50 since April 2006.
Regionally, the Housing Market Index showed mixed results. Confidence fell 1 point in the Northeast, held firm in the Midwest, and rose in the Southeast and West regions by 2 points and 4 points, respectively. Maricopa real estate has been embracing the well priced new homes.
As an index, the monthly survey is actually a composite of three separate homebuilder surveys — a report on single-family sales; a report on current buyer foot traffic; and a projection for single family sales in the next 6 months.
March’s HMI breakdown shows that builders expect sales to be brisk over the next few months. Projected Single-Family Sales is running at its highest level since May 2010 — right as the $8,000 federal homebuyer tax credit was ending.
- Single-Family Sales : 17 (Unchanged from February)
- Buyer Foot Traffic : 12 (Unchanged from January)
- Projected Single-Family Sales : 27 (+2 from February)
For home buyers in Maricopa and across the country , the March Housing Market Index may signal the end of “builder discounts” and free upgrades. As home sales increase, builders are often less likely to make concessions.
In conjuction with rising mortgage rates and new, mandatory loan costs, buying a newly-built home may never be as inexpensive as it is right now.
If you expect to buy a newly-built home this year, consider moving up your time frame. The longer you wait, the more it may cost you. If you are looking for Maricopa real estate visit Prudential One Realty. Are you looking for an Arizona mortgage? Click here
Posted on 14th March 2011 by Anthony in Home How To
Casa Grande, casa grande real estate, Cleaning, HVAC, spring cleaning
The calendar has turned March in Casa Grande and warmer weather is around the corner. Get ready for Spring Cleaning Season. Keep up the value of your Casa Grande real estate investment.
For households in which Spring Cleaning is an annual ritual, this helpful checklist from MarthaStewart.com makes sure no job gets left behind.
From the smallest of chores to the biggest of projects, many common tasks are covered, including:
- Vacuuming and shampooing rugs
- Waxing wooden furniture and non-wood floors
- Dusting books and shelves
- Resealing grout lines in kitchens and bathrooms
- Clean and/or launder window treatments
Then, you’ll want to remember to flip your mattresses, change your air filters, and test your home’s smoke alarm batteries. Small items like this help you maintain the value of your home in Casa Grande, Arizona.
Most of the cleaning can be handled with household items like rags and cleansers, but for a few of the items, you may want to rent a machine from a local hardware store or supermarket. Carpet shampooers are a noteworthy example. Rental costs are nominal and the potential time savings are big.
For some households Spring Cleaning is a one-day affair. For others, it’s a weekend project that lasts a month. However you choose do it, keep this checklist handy and you’ll have an easier time. If you are looking to buy a home in Casa Grande, Arizona
Posted on 13th March 2011 by Anthony in Industry News | Uncategorized
Arizona, Arizona real estate, arizona real estate investments, Chandler, Gilbert, homes for sale, homes for sale arizona, invest in arizona, investments, Maricopa real estate, real estate, resons to move to arizona, swecond homes arizona
If you are thinking about buying a home in Arizona it is a fantastic idea. I’ll give you five reasons why I think buying a home in Arizona would be a fantastic investment but you do need to have certain criteria in mind when you undertake an investment in Arizona.
Reason number one – you can buy a home for cheaper than you can build it. Just that fact alone makes it an attractive long-term Arizona investment. In the city of Maricopa homes are going for around $40-$50 a square foot in some cases that’s less than half of building a new home.
Reason number two – Arizona is still projected as one of the long-term fastest-growing areas of the United States. Maricopa real estate has driven a 4000% growth gain over the past 10 years. Now County Arizona led the way in the nation for the growth over the past 10 years and continues to lead that trend. Homes for sale in Casa Grande Arizona are still very attractive. Casa Grande real estate affords great job opportunity and lots of attractions to include stores malls and movie theaters.
Reason number three – we are driven by retirees investors and people looking to purchase second homes because of the weather. This will always drive the long-term market of Arizona and thus will drive the value of your Maricopa real estate investment or your Casa Grande real estate investment.
Reason number four – ew cities. Maricopa Arizona Incorporated in 2003 and has grown to almost 40,000 people since. You get lots of different homes for salewhen you are looking at Gilbert real estate Casa Grande real estate Maricopa real estate and Chandler real estate. The new roads the stores the space and the attractive weather makes it a great place to invest in Arizona, retire in Arizona, or look to buy a second home in Arizona. Maricopa Arizona and Casa Grande Arizona are great places for second homes because of the low house prices.
There are some things to keep in mind when you’re looking to buy a home in Arizona invest in places like Casa Grande and Maricopa, or buy a second home in Gilbert or Chandler Arizona. Here the tips to look for:
- you can always try to flip your real estate investment quickly for a small gain but in my book that is speculation and with speculation always comes risk. For true long-term value and to minimize the risk when you buy a home in Maricopa Arizona or Casa Grande. You have to think about going in staying for at least 3 to 5 years that will give you sufficient time for your real estate investment in Arizona to mature. With rates as low as they are you can buy a second home in Gilbert Arizona or by second home in Chandler Arizona or even by second home and Maricopa Arizona, but the key is to keep it for at least 3 to 5 years.
- Look for long-term value. It’s always attracted to look for the $30,000 short sale that’s fallen out of escrow three times, but if this is a home you live in or use it’s always a good idea to look for long-term value in Maricopa real estate and casa Grande a real estate. Make sure that the home has a good location and is structurally sound and always getting inspection on your Arizona real estate purchase. A good floor plan could always add value to your casa grande a real estate, things like paint cabinets and flooring could always be things you can add in the future to help you build value in the long run.
- Take advantage of today’s great financing programs. If you apply today for an Arizona mortgage you be very surprised to see the great rates that you get. FHA is leading the financial market in Arizona and around the country with creative financing programs to help you buy your home for less. Low mortgage rates in Arizona coupled with low prices for Maricopa real estate and Casa Grande real estate, make it a great opportunity to take advantage of everything that they have to offer to include financing and low home prices.
If you’re looking to buy a home in Arizona contact the professionals at Prudential one Realty we are here to serve your Maricopa real estate needs, Casa Grande real estate needs, Gilbert real estate needs, Chandler real estate needs, and any other surrounding areas in the East Valley of the Phoenix area. If you are looking to get a mortgage in Arizona or buy a home, sell a home, or just need advice on your Arizona real estate, visit www.pru1re.com.
Posted on 10th March 2011 by Anthony in Industry News | Mortgage Guidelines
Arizona mortgage rates, arizona mortgages, Casa Grande, casa grande real estate, LLPA, loan rates, loan rates arizona, Maricopa, Maricopa Arizona, Maricopa AZ, Maricopa real estate, Mortgage Rates, real estate
Beginning April 1, 2011, Fannie Mae is increasing its loan-level pricing adjustments. Conforming mortgage applicants in Maricopa Arizona should plan for higher loan costs in the months ahead. This will affect your buying power for Maricopa real estate and Casa Grande real estate alike.
If you’ve never heard of loan-level pricing adjustments, you’re not alone; they’re an obscure mortgage pricing metric and, thus, are rarely covered by the media. That doesn’t make them any less relevant, however.
LLPAs are mandatory closing costs assessed by Fannie Mae and Freddie Mac, designed to offset a given loan’s risk of default. LLPAs were first introduced in April 2009.
This April’s amendment is the 6th increase in 2 years. LLPAs can be costly.
In addition to an up-front, quarter-percent fee applied to all loans, there are 5 additional “risk categories” in the LLPA equation:
- Credit Score : Lower FICO scores trigger additional costs
- Property Type : Multi-unit homes trigger additional costs
- Occupancy : Investment properties trigger additional costs
- Structure : Loans with subordinate financing may trigger additional costs
- Equity : Loans with less than 25% equity trigger additional costs
Adjustments range from 0.25 points (for having a 735 FICO score) to 3.000 points (for buying an investment property with just 20% downpayment). And they’re cumulative. This means that a borrower that triggers 3 categories of risk must pay the costs associated with all 3 traits.
Loan-level pricing adjustments can be expensive — up to 5 percent or more of your loan size in closing costs. The fees can be paid a one-time cash payment at closing, or they can be paid in the form of a higher mortgage rate.
The loan-level pricing adjustment schedule is public. You can research your own loan scenario at the Fannie Mae website, but you may find the charts confusing.
Phone or email your loan officer if you’re unsure of what you’re reading. If you are looking for Maricopa real estate or Casa Grande real estate visit Prudential One Realty we specialize in Maricopa, Casa Grande, and many other Pinal County and east valley cities.
Posted on 9th March 2011 by Anthony in Industry News | Tax Tips
Arizona, arizona taxes, buy a home in casa grande, Casa Grande, Casa Grande Arizona, casa grande real estate, Federal Reserve, FOMC, homes for sale, homes for sale casa grande, income taxes, Inflation, IRS, real estate, tax deadline, Taxes
April 15 is the traditional due date for federal income taxes. It’s a deadline so ingrained in the American psyche that the April 15 calendar date is often called, simply, “Tax Day”. Residents of Casa Grande and around the country get a coule extra days.
In 2011, however, federal taxes aren’t due till the 15th. They’re due the 18th. It’s because of a combination of holiday, calendars, and tax law.
The change centers on Emancipation Day.
Emancipation Day is a public celebration in the District of Columbia. Named a holiday in 2005, Emancipation Day honors President Abraham Lincoln’s April 16, 1862 signing of the Compensation Emancipation Act.
Emancipation Day is a non-working day in the nation’s capitol but, this year, Emancipation Day falls on a Saturday. The municipality will observe the holiday Friday instead. This means that all of Washington, D.C. will be “closed” Friday, April 15 — the usual tax filing deadline date.
This includes the IRS.
Therefore, to accommodate Emancipation Day, the government is extending this year’s federal tax filing deadline to April 18, 2011. This year marks the second time Emancipation Day has forced the change of federal tax filing deadlines.
Also, as a non-related coincidence, tax filers in Arizona taking extensions to October 15 will also get a few extra days. October 15 is a Saturday so the extended tax deadline rolls over to the following Monday — October 17, 2011. If you are looking for Casa Grande real estate visit www.pru1re.com. Are you looking for a mortgage? Click here. This year they give you an extra 3 days to pay your federal income tax. If you are looking to buy a home in Casa Grande, the time is now. With the tax credits, and with rates slightly rising, the time to buy a home in Casa Grande right now. Casa Grande real estate has plenty of homes for sale that are available today at great home prices. All throughout Arizona they have built alot of homes during the boom, that have recently foreclosed, then they go back on the real estate market at very good prices. In alot of cases you can buy a home for less than a builder can build the home for. Casa Grande Arizona is growing and has all of the amenities that any bigger city has, with half of the prices.
Posted on 8th March 2011 by Anthony in Home Values | Industry News
Arizona, Arizona home affordability, Arizona mortgage rates, buy a home, buy a home in maricopa, buy a home in maricopa arizona, Home Affordability, Home Opportunity Index, Maricopa, Maricopa AZ, maricopa az real estate, Maricopa real estate, NAHB
Home affordability reached an all-time high in 2010’s last quarter. Unfortunately for home buyers in Arizona , it’s been a different story since, however. If you are looking to buy a home in Maricopa the time is now, before the total index keeps rising. Arizona mortgage rates and Maricopa real estate affordability is still very low from the birds eye view. Maricopa az real estate is a good investment.
As mortgage rates cratered, and with home values soft, the Home Opportunity Index reached its highest level in 20 years. The index is published by the National Association of Home Builders.
Close to 74 percent of the new and existing homes sold between October-December 2010 were affordable to families earning the national median income of $64,400. It’s the 8th straight quarter in which the Home Affordability Index surpassed 70 percent.
Prior to 2009, the HOI rarely topped 65 percent. In Maricopa and Casa Grande homes are selling for less than new home builders can build them for.
That said, though, as with everything in real estate, home affordability is a local event. For example, take the Elkhart/Goshen area of northern Indiana. 97 percent of homes sold there last quarter were affordable to families making the area’s median income.
This level of affordability is likely related to state capital Indianapolis, a perennial top-scorer itself.
For the second straight quarter — and the 22nd time dating back to 2006 — Indianapolis led all major metropolitan areas with a 93.5 affordability rating.
Meanwhile, on the opposite end of the home affordability spectrum, the “Least Affordable Major City” title went to the New York-White Plains, NY-Wayne, NJ area for the 11th consecutive quarter. Just 25.5 percent of homes were affordable to households earning the area median income.
It’s a a 6-point improvement from Q2 2010, however.
The rankings for all 225 metro areas are viewable on the NAHB website but regardless of where you live, it’s important to remember that rising mortgage rates this year have made homes less affordable in all markets across the United States. We won’t see a repeat record in this quarter’s HOI once it’s calculated and published.
Home buyers in Maricopa have lost 10% of their purchasing power since November, and mortgage rates look poised to rise even more.
If your plans call for buying a home later this year, consider moving up your time frame. The long-term costs of homeownership are rising, and affordability, therefore, is falling. Remember that when Arizona mortgage rates rise, your buying power goes down. The time to buy a home in Maricopa is now. Maricopa real estate will only get pricier, so if you are looking to buy a home in Maricopa, talk to a lender and get the ball rolling.
Posted on 7th March 2011 by Anthony in Homebuyer Tax Credit | Industry News
Arizona real estate, first time home buyer, home buyers, IRS, Maricopa, Maricopa real estate, military, military personel, military tax credit, real estate, Tax Credit, tax credits
Maricopa real estate may have just gotten beter for select few. For certain members of the military, and for certain federal employees, there’s just 2 months remaining to get use the federal home buyer tax credit. If you fall into this category and live in the city of Maricopa or Casa Grande contact a local Prudential One Realty agent to discuss what options you may have.
Eligible persons include members of the uniformed services, members of the Foreign Service, and intelligence community employees who served at least 90 days of qualified, extended duty service outside of the United States between January 1, 2009 and April 30, 2010.
Spouses of persons meeting the above criteria are eligible as well. If you fall under that category for Maricopa real estate then you may still qualify.
The federal home buyer tax credit ranges up to $8,000 for first-time home buyers, and up to $6,500 for existing homeowners. Existing homeowners must have lived in their “main home” through 5 of the last 8 years to be eligible.
Claiming the federal tax credit is a two-step process. First, eligible persons must be under contract for a new home on or before April 30, 2011. The home’s closing must then occur on or before June 30, 2011.
The IRS does not make date exceptions.
Furthermore, both the buyer(s) and the subject property must meet certain minimum eligibility requirements:
- The home may not be purchased from a parent, spouse, or child
- The home may not be purchased from an entity in which the seller is a majority owner
- The home may not be acquired by gift or inheritance
- Each buyer must meet tax credit eligibility standards
- The home sale price may not exceed $800,000
- Buyers may not earn more than $125,000 as single-filers; $225,000 as joint-filers
The complete program description is published on the IRS website.
Another important note is that the IRS is giving eligible buyers a tax credit as opposed to a deduction. This means that a taxpayer qualifying for the full $8,000, and for whom the “normal” 2011 federal tax liability is $8,000, will have zero federal tax liability in 2011.
For additional information regarding your tax credit eligibility, call an accountant. Speaking with a tax professional is often worth the cost. For more information about Maricopa real estate or to get a home loan in Arizona click here.
Posted on 4th March 2011 by Anthony in FHA Mortgages | Industry News
Arizona, arizona financing, buy a home in Ariozna, buy a home in maricopa, FHA, get a mortgage arizona, homes for sale maricopa arizona, homes for sale marixopa, Maricopa, Maricopa Arizona, Maricopa real estate, MIP, Mortgage Insurance
For the third time in 12 months, the FHA is changing its mortgage insurance costs. You should check with your mortgage lender about these insurance premiums when you look to buy a home in Maricopa. These changes will take place i April and will affect Maricopa real estate and nationwide.
Effective for all case numbers assigned on, or after, April 18, 2011, annual mortgage insurance premiums (MIP) will increase 25 basis points.
The change will add $250 to an FHA-insured homeowner’s annual loan costs per $100,000 borrowed, and applies to all borrower’s equally. Current borrowers are unaffected. So if you are already in the process to buy a home in Maricopa and you have secured your FHA loan, then there would be no increase.
To understand the FHA is to understand why premiums are rising. During the past 5 years They have played a major role in Maricopa real estate most people that wanted to buy a home in Maricopa during this time bought using FHA backed funds.
As an institution, the Federal Housing Administration plays a much larger role in the U.S. housing market today than it did just 5 years ago. According to its own records, the FHA’s percentage of purchase money business in Arizona and nationwide expanded from 4 percent in FY 2006 to 19 percent in FY 2010.
Rapid growth like this has strained the FHA’s capital and, indeed, in its official statement, the they allude to this, stating that the MIP increase will “significantly strengthen” its reserves. By law, the FHA must maintain a certain minimum level of reserves.
Mortgage insurance varies by loan term, and by loan-to-value and, beginning April 18, 2011, the new insurance premiums are as follows:
- 15-year loan term, loan-to-value > 90% : 0.50% per year
- 15-year loan term, loan-to-value <= 90% : 0.25% per year
- 30-year loan term, loan-to-value > 95% : 1.15% per year
- 30-year loan term, loan-to-value <= 95% : 1.10% per year
To calculate your monthly mortgage insurance premium, multiply your starting loan size by your insurance premium, and divide by 12. The truth is that this is small in comparisonm to Maricopa real estate prices, and the overall picture still looks very good for buyers of Maricopa real estate. If you are looking to buy a home in Maricopa, or need a loan for your real estate purchase click here.
There is no change planned to the 1 percent upfront mortgage insurance premium charged by the FHA.
Posted on 3rd March 2011 by Anthony in jobs
Arizona, Arizona real estate, buy a home, Casa Grande, casa grande real estate, get a mortgage, get a mortgage arizona, homes for sale, homes for sale casa grande arizona, mortgages arizona, Non-Farm Payrolls, real estate, Unemployment
Mortgage rates in Arizona could move higher beginning tomorrow morning. The Bureau of Labor Statistics releases its February jobs report at 8:30 AM ET. The overall affordability of Casa Grande real estate is still string, but the Mortgage rates for Arizona are steadily rising.
Home buyers in Casa Grande and rate shoppers in Casa Grande would be wise to take note. The jobs report is almost always a market-mover. Smart shoppers would be looking to lock in a mortgage to buy a home in Casa Grande before the jobs report.
Consider last month.
Although net job creation fell well-short of expectations in January — just 36,000 jobs were added — the national Unemployment Rate dropped to 9.0%, its lowest level in 2 years. The marked improvement surprised economists and sparked inflationary concerns within the investor community.
This, in turn, caused mortgage rates to rise. To get a mortgage in Arizona will cost you about .375 higher a point than it did just 2 short months ago.
In the days immediately following the jobs report’s release, conforming rates across Arizona jumped 0.375 percent. That’s equivalent to a mortgage payment increase of $22 per month per $100,000 borrowed.
A similar spike could occur tomorrow.
Wall Street scrutinizes job growth because with more working Americans, there’s more consumer spending, and consumer spending accounts for 70% of the U.S. economy. A blow-out number tomorrow would change expectations for the future, and lead rates higher again. This could be the beggining of a slow steady climb, at least Casa Grande real estate is still relatively inexpensive.
The economy shed 7 million jobs between 2008 and 2009 and has barely made 1 million of them back. Tomorrow, analysts expect to see 183,000 jobs created. If the actual reading is lower-than-expected, mortgage rates in Arizona should fall and home affordability will improve.
Anything else and mortgage rates should rise. Likely by a lot.
Therefore, if you’re shopping for a mortgage right now, consider your risk tolerance. Once markets open tomorrow, you can’t get today’s rates. Are you looking to get a mortgage in Arizona? Buy a home in Casa Grande and lock in today’s great rates.
