Think You Need A Lot Of Cash to Buy A Home?

Today, Freddie Mac is scheduled to start buying mortgages with down payments of only three percent – the first time down payments have been this low on Freddie Mac loans in nearly five years. The program is called Freddie Mac Home Possible AdvantageSM.

In a recent Executive Perspectives, Dave Lowman EVP, Single-Family Business Freddie Mac, explained the potential impact this program will have on the housing market:

“There's a new reason Realtors and lenders may expect more qualified borrowers at the closing table during this spring's home buying season. In addition to low mortgage rates and rising job growth, the down payment hurdle is starting to shrink for creditworthy borrowers, including first-time homebuyers.”

And the mortgage industry agrees with Mr. Lowman. In a recent survey of mortgage originators by the National Association of Realtors (NAR), it was revealed that most loan officers believe the move to a lower down payment will increase access to mortgage credit. Here are that survey’s findings:

Bottom Line

Many potential buyers are “ready and willing” to buy a home but have been afraid they may not be “able” because of a lack of adequate savings for a down payment. Check with a local real estate or mortgage professional to understand what the new rules may mean to you.

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New Lower Price! 513 W 127th Ave, Tampa, FL 33612

Get Directions Click Here Description Features Photos Maps & Local Schools Virtual Tour $ Click for current price 3 BEDROOMS 2 BATHROOMS (2 full) 2150 Square Feet Come see this inviting and well maintained home in the desirable Forest Hills area. Your home is located ½ mile from Babe Zaharias golf course in a quiet neighborhood with majestic oak trees and sidewalks. One of the first things you’ll notice is the gorgeous paver driveway. You’ll find that pavers and stonework complement this attractive home from front to back. Enjoy your remodeled kitchen with eat-in space, wood cabinets, granite countertops and Kohler fixtures. Nearby is a huge family/dining room area with a wood burning fireplace great for those chilly evenings! Your amazing 600 sq.ft. master suite has an oversized bedroom, large closet and a luxurious master bath. Your master bath includes a whirlpool Pearl tub with in-line heater, Kohler fixtures, skylight, imported tile, walk-in shower with built-in bench and separate water closet. Upgrades like dimensional shingles, newer windows, extra attic insulation, separate A/C and hot water heater for the master suite, solar tube in hall bath, newer high efficiency main A/C, new hot water heater, vinyl and aluminum soffit and fascia, 25 year exterior paint and upgraded plumbing and electric in kitchen and master suite make this home special. Sip your morning coffee in the screened lanai or on the open wood deck and enjoy the peaceful, private back yard filled with beauty & wildlife. Don’t miss the wonderful 12x13 workshop with cabinets, benches and storage! This central Tampa location has easy access to interstate & other amenities with no HOA or CDD fees. Tampa Homes For Sale Search All Homes for Sale New Construction Homes for Sale Homes Close to Where You Work Avoid Foreclosure What is Your Home Worth? Susan Smither Berkshire Hathaway HomeServices Florida Properties Group 813-230-5804 smithersells@yahoo.com L2L

Don’t Let Your “Luck” Run Out!

The 30-year fixed mortgage interest rate is currently still below 4%. Many buyers may be on the fence as to whether to act now and purchase a new home, or wait until next year, believing they still have time to lock in a low rate.

If you look at what the experts are predicting over the course of the next 12 months, it may make the decision for you.

Predictions for 2016 2Q:

• 4.2% - Fannie Mae
• 4.7% - Freddie Mac
• 4.9% - Mortgage Bankers Association
• 5.3% - National Association of Realtors

Even an increase of half a percentage point can put a dent in your family’s net worth.

Let’s look at it this way…

The monthly payment (principal & interest only) on a $250,000 home today, with the current 3.86% interest rate would be $1,173.

If we take that same home a year later, the Home Price Expectation Survey projects that prices will rise about 4.4% making that home cost $11,000 more at $261,000.

If we take Freddie Mac’s rate projection of 4.7%, the monthly mortgage payment climbs to $1,354.

Some buyers might not think that an extra $181 a month is that bad. But over the course of 30-year mortgage you have spent an additional $65,160 by waiting a year.

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Is Another Bubble Forming?

After the housing market bust we experienced across the country in 2008, many experts have been quick to warn that a new bubble may be forming in some areas.

One particular example of this is a recent article pointing toward the California Bay Area’s price gains over the last 18 months.

The quickest and easiest way to show how far we’ve come and how far we still need to go in regards to the ‘Peak’ is to share CoreLogic’s Price & Time Since Peak figures, used to create the map below.

Even with the high performance of prices in the Bay Area, the state of California as a whole is still -14.4% below their Peak, experienced in May of 2006.

The biggest challenge facing the housing market’s recovery right now is the lack of inventory available for sale. Prices are determined by supply and demand. Right now buyer demand is out-pacing seller supply, across many price ranges, driving prices up.

Bottom Line

Traditionally the Spring months have been the most popular dates sellers choose to list their homes. With additional inventory coming to market soon, meet with a professional in your local market to evaluate your best course of action.

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New Lower Price! 513 W 127TH AVENUE, TAMPA, FL

Get Directions Click Here Description Features Photos Maps & Local Schools Virtual Tour $ Click for current price 3 BEDROOMS 2 BATHROOMS (2 full) 2150 Square Feet Come see this inviting and well maintained home in the desirable Forest Hills area. Your home is located ½ mile from Babe Zaharias golf course in a quiet neighborhood with majestic oak trees and sidewalks. One of the first things you’ll notice is the gorgeous paver driveway. You’ll find that pavers and stonework complement this attractive home from front to back. Enjoy your remodeled kitchen with eat-in space, wood cabinets, granite countertops and Kohler fixtures. Nearby is a huge family/dining room area with a wood burning fireplace great for those chilly evenings! Your amazing 600 sq.ft. master suite has an oversized bedroom, large closet and a luxurious master bath. Your master bath includes a whirlpool Pearl tub with in-line heater, Kohler fixtures, skylight, imported tile, walk-in shower with built-in bench and separate water closet. Upgrades like dimensional shingles, newer windows, extra attic insulation, separate A/C and hot water heater for the master suite, solar tube in hall bath, newer high efficiency main A/C, new hot water heater, vinyl and aluminum soffit and fascia, 25 year exterior paint and upgraded plumbing and electric in kitchen and master suite make this home special. Sip your morning coffee in the screened lanai or on the open wood deck and enjoy the peaceful, private back yard filled with beauty & wildlife. Don’t miss the wonderful 12x13 workshop with cabinets, benches and storage! This central Tampa location has easy access to interstate & other amenities with no HOA or CDD fees. Tampa Homes For Sale Search All Homes for Sale New Construction Homes for Sale Homes Close to Where You Work Avoid Foreclosure What is Your Home Worth? Susan Smither Berkshire Hathaway HomeServices Florida Properties Group 813-230-5804 smithersells@yahoo.com L2L

FSBOs Must Be Ready to Negotiate

Now that the market has showed signs of recovery, some sellers may be tempted to try and sell their home on their own (FSBO) without using the services of a real estate professional.

Real estate agents are trained and experienced in negotiation. In most cases, the seller is not. The seller must realize their ability to negotiate will determine whether they can get the best deal for themselves and their family.

Here is a list of some of the people with whom the seller must be prepared to negotiate if they decide to FSBO:

• The buyer who wants the best deal possible
• The buyer’s agent who solely represents the best interest of the buyer
• The buyer’s attorney (in some parts of the country)
• The home inspection companies which work for the buyer and will almost always find some problems with the house.
• The termite company if there are challenges
• The buyer’s lender if the structure of the mortgage requires the sellers’ participation
• The appraiser if there is a question of value
• The title company if there are challenges with certificates of occupancy (CO) or other permits
• The town or municipality if you need to get the COs permits mentioned above
• The buyer’s buyer in case there are challenges on the house your buyer is selling.
• Your bank in the case of a short sale

Bottom Line

The percentage of sellers who have hired a real estate agent to sell their home has increased steadily over the last 20 years. Meet with a professional in your local market to see the difference they can make in easing the process.

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