PMI Group Inc. plans to offer greater support for borrowers attempting to refinance, in a move that could lower the risk of default for struggling home owners. The Walnut Creek, Calif.-based private mortgage insurer is allowing borrowers to keep their current PMI policies even if their original loans were not owned or guaranteed by Fannie Mae or Freddie Mac. Also, borrowers will be able to obtain coverage for new, refinanced loans -- even if the value of the property has fallen since the original loan was insured.
Source: American Banker, Kate Berry (06/26/09)
Monday, June 29, 2009
Thursday, June 25, 2009
Fed to Keep Short-Term Rates Low
The Federal Reserve announced Wednesday that it expects to keep short-term interest rates “exceptionally low” for the next few months. It also underscored its commitment to make $1.25 trillion in total purchases of mortgage-backed securities by the end of year.
Both actions are likely to keep mortgage rates low through the end of 2009.
The Fed failed to raise a cap of $300 billion in purchases of Treasury securities, which could lead indirectly to higher mortgage rates because mortgage rates tend to rise in conjunction with Treasurys.
In response to the possibility of rising mortgage rates, the Mortgage Bankers Association this week cut its forecast for total 2009 mortgage originations by 27 percent.
Source: Inman News (06/25/2009)
Both actions are likely to keep mortgage rates low through the end of 2009.
The Fed failed to raise a cap of $300 billion in purchases of Treasury securities, which could lead indirectly to higher mortgage rates because mortgage rates tend to rise in conjunction with Treasurys.
In response to the possibility of rising mortgage rates, the Mortgage Bankers Association this week cut its forecast for total 2009 mortgage originations by 27 percent.
Source: Inman News (06/25/2009)
Wednesday, June 24, 2009
Tax Benefits of Homeownership
The tax deductions you’re eligible to take for mortgage interest and property taxes greatly increase the financial benefits of homeownership. Here’s how it works.
Assume:
$9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest) $2,700 = Property taxes (at 1.5 percent on $180,000 assessed value)______$12,577 = Total deduction
Then, multiply your total deduction by your tax rate.
For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56
$3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate)
Note: Mortgage interest may not be deductible on loans over $1.1 million. In addition, deductions are decreased when total income reaches a certain level.
Assume:
$9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest) $2,700 = Property taxes (at 1.5 percent on $180,000 assessed value)______$12,577 = Total deduction
Then, multiply your total deduction by your tax rate.
For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56
$3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate)
Note: Mortgage interest may not be deductible on loans over $1.1 million. In addition, deductions are decreased when total income reaches a certain level.
Todays Mortgage Rates
Mortgage Rate
- 30 Year Fixed: 5.29%
- 15 Year Fixed:4.79%
- 1 Year Adj: 4.81%
Tuesday, June 23, 2009
Home-Sale Hassles of the Rich and Famous
Anybody having trouble selling their home should take comfort in the fact that even celebrities are having the same problem. Here are some celebs who can’t seem to sell their houses:
- Jon and Kate Gosselin, co-stars of the popular TLC show "Jon & Kate Plus 8," have been trying for three months to sell their former home in Elizabethtown, Pa.
- Rapper 50 Cent has given up selling his mansion in Farmington, Conn., after dropping the price from $18.5 million to $14 million.
- Richard Gere and wife Carey Lowell have dropped the price on their home in New York’s Hamptons from $8.8 million to $7.2 million.
- Model Elle Macpherson cut the price of her London Victorian from $9.5 million to $8.5 million, and has since dropped it to $7.5 million.
- Star of "Real Housewives of Orange County" on BRAVO TV Jeana Keough, also a real estate practitioner, is facing foreclosure.
Source: Chicago Tribune, Mary Umberger (06/21/2009)
Monday, June 22, 2009
Home Buyer Tax Credit Could Expand
A first-time home buyer tax credit of up to $8,000 has helped to move housing inventory during an otherwise sluggish real estate cycle. Now both legislators and the business community are hoping to build on the incentive's success by expanding it. A number of bills have been introduced in the House and the Senate that lobby for an expansion of the measure. Among the proposed changes:
- Setting a new cap of $15,000.
- Extending the tax break into mid-2010.
- Making the benefit available to all home buyers, not just first-timers.
- Offering a separate tax credit to $3,000 for borrowers who refinance.
Friday, June 19, 2009
Foreign Investors Bullish on U.S. Real Estate
Foreign real estate investors expect the U.S. real estate market to recover by the end of the second quarter of 2010, according to a survey released Wednesday by the Association of Foreign Investors in Real Estate (AFIRE).Survey respondents were optimistic about the prospects for good returns, with more than two-thirds planning to invest in U.S. real estate before the end of the year.About 31 percent said they were more hopeful now about the health of the U.S. real estate market than they were in January, 16 percent said they were more pessimistic, and 53 percent said their opinion had stayed the same.The 200 members surveyed predicted that Washington, D.C., New York City, and San Francisco would be the first cities to recover, followed by Boston and Los Angeles. Source: Association of Foreign Investors in Real Estate (06/17/2009)
Wednesday, June 17, 2009
May 2009 Real Estate Market Report for RBYCC
May 2009 Real Estate Market Report for RBYCC
6 new listings:
6 new listings:
- 3 THE ISLANDS OF BAY VISTA RBYCC 3 bed/2.5 bath $2,595,000
- 15 COVENTRY ROAD RBYCC 5 bed/3bath/2 half bath $725,000
- 1 SHERBOURNE RBYCC 3 bed/3.5 bath $699,900
- 56 WEST SIDE DRIVE RBYCC 4 bed/ 3 bath $569,000
- 2 SOMERSET ROAD RBYCC 3 bed/ 2 bath $489,500
- 4 CROYDEN ROAD RBYCC 3 bed/ 2.5 bath $475,000
1 sold
- 161 BUCKINGHAM ROAD RBYCC 6 bed/ 4.5 bath Listed $579,500 sold 05/07/09 $465,000
2 under contract
- 151 E. BUCKINGHAM DRIVE RBYCC 4 bed/ 3.5 bath Listed $475,000
- 50 WINDSOR RD RBYCC 4 bed/4.5 bath Listed $495,000
Tuesday, June 16, 2009
May 2009 Rehoboth Beach Real Estate Market Activity Report
6 new single family homes listed :
- 23 Columbia Avenue 4 bed/3.5 bath $1,975,000
- 62 Columbia Avenue 4 bed/4.5 bath $1,776,000
- 19 Fourth Street 4 bed/2.5 bath $875,000
- 108 Country Club Rd 5 bed/4 bath $749,500
- 319 Sandalwood Street 3 bed/2 bath $579,000
- 32 Sussex Street 2 bed/1bath $559,000
8 new condo/townhouse listed :
- 419 Henlopen 2 bed/2 bath $1,075,000
- 307 S Boardwalk 2 bed/2 bath $925,000
- One Virginia Ave 1 bed/1 bath $649,000
- 20 Canal Street 4 bed/3.5 bath $609,900
- 21 Ocean Drive 2 bed/1 bath $575,000
- One Virginia Ave 0 bed/1 bath $525,000
- 17 Philadelphia St 1 bed/1 bath $369,900
- 409 Rehoboth Ave 1 bed/1 bath $265,000
No sales or under contract
Sunday, June 14, 2009
HB 188 Tourism Bill -5% Excise Tax on Short Term Rentals
This act expands the scope of Delaware's public accomodations lodging tax to include temporary and seasonal rentals for less than 5 month. It also provides for reduction in the amount of the lodging tax imposed to take into consideration any existing tax imposed by a county or municipality as of the effective date of the Act's provisions. Finally, the act requires owners of rental unit to annually obtain a Rental Unit License from the Department of Finance at a cost $50.00.
Just that you know, REALTORS of Sussex County strongly oppose the proposed 5% excise tax.
Just that you know, REALTORS of Sussex County strongly oppose the proposed 5% excise tax.
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