Posted on 8th July 2011 by Anthony in The Economy
foreclosures, Greece, jobs, Maricopa, Maricopa Arizona, Maricopa AZ, Maricopa real estate, market, pinal county arizona, real estate, Volcano
The year is half-over. It’s an opportune time to take stock of analyst predictions made at the start of the year, and to recognize that the “experts” can be wrong as often as they are right. Maricopa real estate
For as much experience and authority an expert brings to the conversation, though, nobody can accurately predict the future.
As such, there’s often disagreement.
Looking back to December, some housing analysts called for a market rebound this year; while others called for a fall. With respect to mortgages, some said rates had nowhere to go but up; while others expected more dips.
As a layperson, how do you know who will be right?
In short, you can’t.
Predictions are a tricky business because they’re guesses about the future based on the world as it exists today. When the predictions listed earlier were made, the world was a different place.
A lot has changed since January:
- Slowing job growth has suggested to slower U.S. economic growth
- Food and energy costs have spiked, adding inflationary pressures to the economy
- Eurozone debt issues have grown, punctuated by a near-Greek default
- Tsunamis have caused widespread damage in Japan
- Earthquakes, floods and volcanoes have harmed economic output
None of these events had occurred as of December, when the original predictions were made. Yet, each of these developments has made a deep impact on housing, and on the economy.
So, what’s a Casa Grande homeowner to do? Think of the present instead.
First, mortgage rates are low today — extremely low by historical standards. Second, home values have been slow to rebound through most U.S. markets. Combined, these factors have made homes more affordable than it any time in recorded history. It’s not only cheap to buy a home right now, it’s cheap to refinance one, too.
Analysts are saying the home prices will rise this year, and mortgage rates will, too. Those predictions may ultimately be proven true. Until the future arrives, though, those predictions are just guesses. If you are looking for Maricopa real estate please visit www.pru1re.com for more information about the city of Maricopa and the great state of Arizona.
Posted on 1st July 2011 by Anthony in Mortgage Rates
ARM, Fixed Rate, Freddie Mac, Maricopa AZ, real estate
The interest rate differential between fixed-rate and adjustable-rate mortgages continues to widen and has now reached historic levels.
There’s never been a better time to lock an ARM.
According to Freddie Mac’s weekly Primary Mortgage Market Survey, homeowners in Casa Grande who lock their mortgage rate today will save 129 basis points on rate, on average, by choosing a 5-year ARM as their mortgage product as compared to a 30-year fixed rate loan.
The average 30-year fixed rate is 4.51%. The average 5-year ARM rate is 3.22%.
It’s the biggest interest rate spread between fixed-rate and adjustable-rate mortgage rates in Freddie Mac’s recorded history; a gap which is the result, in part, of the 5-year ARM dropping to all-time lows this week.
Rates for the 5-year ARM are even lower than during last year’s historic Refi Boom.
Putting today’s “spread” in action against a hypothetical $250,000 loan size, a homeowner that chooses an ARM over a fixed-rate loan would save $184.30 monthly, and would have $500 fewer closing costs.
That’s a 5-year savings of $11,558 — nearly triple what you would have saved just 2 years ago.
The main reason why today’s adjustable-rate mortgages are priced so aggressively relative to comparable fixed-rate loans is that Wall Street expects the economy to drag for the next several quarters, after which it expects an acceleration.
ARMs tend to reflect short-term expectations for the U.S. economy which is why short-term mortgage rates are dropping. Fixed products, by contrast, take a longer view and expectations for an economic rebound are pulling fixed-rate mortgage rates up.
For now, mortgage applicants can exploit the difference — especially those who plan to move within the next 5 years — but adjustable-rate mortgages aren’t right for everyone. ARMs carry particular risks about which you should be aware before locking.
Before you choose an ARM, therefore, talk it through with your loan officer.
Posted on 2nd May 2011 by Anthony in Around The Home
Cleaning, Eco-Friendly, house cleaning, Maricopa, Maricopa real estate, real estate, Windows
Your home’s windows look best when they’re clean on both the inside and the outside. It’s a quarterly housekeeping chore, at minimum, and should coincide with seasonal changes.
But washing windows can be a drag on the environment. Most homeowners use multiple rolls of paper towels to finish the job, and many commercial window cleaners are chemical-loaded.
Fortunately, there’s a way to wash your windows, be environmentally conscious, and still get great results. Here’s how to do it.
First, wait for a cloudy day. Cloudy days are best for cleaning windows because sunny days create more streaking; the sun can dry the windows before you’ve had a chance to polish them.
Next, make your cleaning solution.
If this is your first time cleaning your home’s windows, in a spray bottle, mix 8 parts water with 1 part each of white vinegar and environmentally-friendly dish detergent. The dish detergent is a necessary additive because it removes waxy buildups from prior washings with commercial cleaners.
Then, for washings beyond the initial cleaning, in the spray bottle, mix 1/2 teaspoon of vinegar for each cup of water instead.
Next, using reusable microfiber cloths, wash one side of the window with horizontal strokes, and the other with vertical strokes. This way, if there’s a streak, you’ll know on which side of the window it is.
Lastly, rinse your cloths often in cold water and be sure to wash top-down.
When you’re finished, your windows will be clean, and you’ll have made a near-zero environmental impact. And remember — you don’t have to wash your windows all at one. You can spread it out over time if that’s easier. If you are looking for Maricopa real estate visite www.pru1re.com.
Posted on 15th April 2011 by Anthony in Housing Analysis
Arizona, Arizona real estate, Bank REO, foreclosures, foreclosures arizona, foreclosures maricopa, Maricopa, Maricopa AZ, Maricopa real estate, real estate, RealtyTrac
Foreclosure activity is much slower this year than last. That is a great sign for home owners in the Maricopa real estate market. Of course Arizona is leading the way along with other states in the foreclosure market, but a slow down in foreclosures at the national level is a good sign.
According to foreclosure-tracking firm RealtyTrac, the number of national foreclosure filings plunged 35 percent in March 2011 as compared to March 2010, a statistic that reflects a more healthy housing market and more robust outlook for 2011.
A “Foreclosure filing” is defined as any of the following : a default notice, a scheduled auction, or a bank repossessions. Foreclosures filings were down in all but 8 states last month.
Activity remains concentrated, too. More than half of all bank repossessions can be tied to just a handful of states.
In March, 6 states accounted for 51% of activity.
- California : 15% of all repossessions
- Florida : 9% of all repossessions
- Arizona : 7% of all repossessions
- Michigan : 7% of all repossessions
- Texas : 6% of all repossessions
- Nevada : 5% of all repossessions
At the other end of the spectrum is Vermont. With just 5 repossessions for all of March, Vermont accounted for 0.008% of repossessions nationwide.
Distressed homes remain in high demand among today’s home buyers, accounting for almost 40% of all home resales. It’s no wonder, either. Distresses home typically sell at a steep, 15 percent discount as compared to non-distressed properties.
Buying foreclosures can be a great “deal”. However, make sure you’ve done your homework.
Buying homes from banks is different from buying a homes from “people”. Contracts and negotiations are different, and homes are often sold with defects.
If you plan to buy a Maricopa foreclosure, therefore, make you you speak with a licensed real estate professional before submitting a bid. You can research a home online and learn a lot of the process, but when it’s time to purchase, put an experienced agent on your side. If you are looking for Maricopa real estate or need an Arizona home mortgage please visit www.pru1re.com.
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 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 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 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.
