Friday, July 26, 2024
Tuesday, July 23, 2024
Mortgage Interest Rate Update from Loan Depot
Today’s average mortgage interest rate is 6.86%. Perhaps more import today is the PCE price index reading. The PCE, the gold standard of big picture inflation measurement, showed inflation of just .182% month over month – and that is an annualized figure of only 2.184%! Meaning we’re at two months of data supporting the target 2% level of inflation.
But the largest component change here is the shelter inflation (rent & owner’s equivalent rent). Housing inflation dropped sharply to the slowest pace since 2021, and equal to the lowest reading seen pre-pandemic. A meaningful change here is even more significant because it makes up the largest percentage of the inflation readings. And lower inflation means the Fed can lower interest rates.
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Monday, July 22, 2024
Can you buy or rent in my area of downtown for $2500 a month? All by yourself? YES !!! 541-771-8947 (text but voicemail is preferred)
I just did a search for a client. She's not sure if she wants to buy yet and hopes to have lower interest rates in the future but little does she know: If the interest rate goes down; the Seller's list price goes up. (Normally).
Interest rates are 6.75 % and you're an FHA Buyer with only 3.5% down; you'll be paying PMI a month of .55% of the loan amount divided by 12 months per month which equals to approximately $2300 a month ALTOGETHER on a $350k condo AND HOA includes Water, Sewer & Garbage (and snow removal which rarely happens but it does!) This is a no-brainer if you don't want to slave over shoveling..outside maintenance...and be close to the PULSE of downtown.
There's only 2 condos out there in the downtown area that work.
Any negatives? YES but NOT to me....you can't do short term rentals and Owner Occupied is preferred.
Call me for your Buyer Broker. I'll find you something that fits. 541-771-8947
Saturday, July 20, 2024
Closing Costs Explained - How Much Are Closing Costs? | Zillow
Closing Costs Explained - How Much Are Closing Costs? | Zillow
And I offer to pay for an HOW at the closing (a value worth around $400); there are many companies with different plans but in essence; it's piece of mind for those old appliances and hot water heaters that went with the sale of the home.
Wednesday, July 17, 2024
Mortgage Broker or Loan Officer ? Local or online and possibly out-of-State
Mortgages 101: Selecting a Lender (cont.)
The loan officer for a bank or credit union originates loans that are offered through their lending institution. If using a bank or credit union, I strongly recommend local banks and credit unions rather than online or out of state lenders. The local lenders value their local reputation and usually reinvest in their local communities. It is a nice option to be able to physically go into a building and talk to a real person as questions arise. Local banks and credit unions are more likely to participate in state-sponsored special financing, such as first-time homebuyer programs (discussed a little later). Be sure to ask if these local lenders participate in federally subsidized loan products, such as Veteran’s Administration (VA), Federal Housing Administration (FHA), and Fannie Mae loans.
Knowing a few reputable mortgage brokers is also vital. A local bank or credit union works well for most uncomplicated situations. Sometimes buyers have special circumstances and need extra help in finding a mortgage loan that fits their situation. A good mortgage broker can shop around at many lenders to match your buyers with loans that work for them. Perhaps your buyers had a foreclosure or bankruptcy in their past. They may be self-employed or in a new field of work. They may want to buy a home that needs a total rehab. There are all sorts of situations where a good mortgage broker can quickly and easily secure a loan. Get to know a few mortgage brokers so you can identify the best ones in your area. Here again, I recommend going with someone local.
Local loan originators know the local customs and the local types of homes. I strongly recommend local banks, credit unions, and mortgage brokers over those who are out of state or in an unknown location.
Planning to buy a home? Keep working on your credit rating. Here's some tips from the lesson I've taken from continuing education classes.....
Getting Finances in Order: Credit Scores (cont.)
One of the most important things your buyer can do is consistently pay at least their minimum payments before the due date for at least 2 years. If your buyer had a rough patch a year and a half ago that resulted in some overdue payments, they can simply wait six more months for those late payments to fall off their credit report and resulting credit score.
Has your buyer maxed out a credit card? Did they go over their limit? Do they owe more than 30% of their overall credit limit? If it is at all possible for your buyer to pay down their balances so the average debt is less than 30% of their credit limit, they can quickly increase their credit score.
Your buyer should also look at the age of their credit accounts. Did they recently open a department store credit card to save 20% off their first purchase? Pay off that balance and close that account. If buyers can keep older accounts open and close newer accounts (anything less than 5 years old), doing so will have a moderate impact on their credit score.
Finally, buyers should try to avoid hard credit checks. A “hard” credit check happens when a buyer applies for a loan or certain credit card accounts. Tell your buyer to avoid opening new lines of credit and shopping around for a mortgage. Each time they apply for a mortgage loan, their credit report is pulled, and their credit score goes down a little. Credit checks have the smallest impact on a credit score, but they can make a difference on your buyer’s mortgage rate.
Tuesday, July 16, 2024
So WHAT's the PCE and how will it effect the interest rate?...
The personal consumption expenditure (PCE) price index rose 0.1% in June, as expected, putting the year-over-year measure at 2.5%, the lowest since February. Consumers are spending as discounts pick up, an ideal scenario for the Fed. The data today is not enough for the fed to cut next week but will spur debate on rate cuts. We still expect two cuts this year, starting in September. Here are a few data points we highlighted this month:
1. Core PCE, the Fed's preferred measure of inflation, rose 0.2% in June. The index rose 2.6% from a year ago, a move sideways from May. The year-on-year measures get harder later in the year given the progress made in 2023.
2. The super core services measure of inflation, which strips out shelter costs from services, rose 0.2% in June and 3.4% from a year ago. Results were mixed in services; homeowners got a brief reprieve on insurance and airfares continued their downward trend, but categories like legal services, restaurants, and homes for the elderly saw significant increases.
3. Goods prices dropped on the heels of lower energy costs, but core goods (excluding food and energy) edged up slightly. We need to see further drops in goods prices to support overall inflation getting back to the Fed's 2% target. Draining of excess inventories should help accomplish that goal.
(per KPMG Economics)
Monday, July 8, 2024
Cute little cabin in the woods with well and septic JUST $260,000
52225 Lechner Lane, La Pine, OR | MLS #220185787 | flexmls Web
| 52225 Lechner Lane La Pine, OR 97739 | $260,000 |
- Mary P Gemba
- Deschutes Realty
Basics
| Total Beds | 1 |
| Total Baths | 1.0 |
| Total Living Area SqFt | 616.0 |
| Lot Size Acres | 1.19 |
Features
- Construction Materials: Unknown
- Foundation Details: Other
Details
| Sub Type | Single Family Residence |
| Subdivision Name | N/A |
| Zoning | RR10, WA |
| Year Built | 1964 |
| Association | No |
| Main House SqFt | 616.0 |
| Elementary School | LaPine Elem |
| Middle Or Junior School | LaPine Middle |
| High School | LaPine Sr High |
Remarks
This family estate property has not been available to the public for sale till now! It is locate just off of the paved portion of Lechner. It is a very quaint and well loved family cabin. The 1.19 treed acres has been partially cleared. And the neighborhood has very nice homes all around this property. The cabin is rustic but well maintained on the inside. It could be a 2 bedroom with some work. And there is an upstairs loft area. So if you are looking for your own private recreational getaway location this is it! Well is approx. 6 yrs old. - New power from the Road. - septic is on property. Property is being sold in a ''AS IS'' state.
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