Over the past couple of weeks, our blog has touched on the historically low interest rates available to buyers looking to purchase real estate with a home loan.  Not only are these low rates good for buyers, but current homeowners with mortgages have been coming out in droves looking to refinance their home loans down to the lower interest rates.  In an Orange County Register article from last week titled “Refi frenzy: Tips for borrowers,” a couple of mortgage brokers doled out some excellent advice to homeowners thinking about refinancing their current loans.  They touch on an array of topics, from what banks are currently looking for in refinance applications (great credit, equity in the home) to shopping around outside of the big lenders for better rates with low costs. 

Refinancing your loan may be as simple as getting on the phone with your current lender and asking if you can obtain a lower rate; however, take the time to look at your current situation to make sure that refinancing is a viable option for you.  The article uses a great example…if you are 10 years into paying off a 30-year loan, why would you want to start the 30 years over again just to drop your interest rate by a small fraction?  In this scenario, it may pay to refinance to a smaller loan term (15 or 20-year, whose rates are also historically low) rather than beginning the interest payment process all over again.  The mortgage brokers use more scenarios to convey their points, making this article a great read for anyone thinking about a refi on their loan.

Please click on the following links to read our recent blogs on falling interest rates and the rise in refinancing applications.  If you have any questions about purchasing or selling a San Clemente home or condo, please do not hesitate to contact us.

In a crazy real estate market like the one we’re currently experiencing, it can be very difficult for buyers and sellers to come to agreements in a home transaction.  Simply put, buyers are looking for the best deal (especially in a buyer’s market like the one we’re in), and sellers are hoping to get what they feel their home is worth to them, not necessarily what the current market dictates.  An article on CNN Money titled “The Best Moves for Home Buyers and Sellers” is a great educational piece that breaks down common issues that arise between buyers and sellers when negotiating a real estate transaction.  From the buyer being a bit more realistic when negotiating an offer price to a seller performing a home inspection before putting their home on the market, this article offers some basic tips on how to make a potential deal on a home run a bit smoother.  The article may not lead to the perfect home sale, but the issues the author discusses and the advice given out may help to move a potential deal in the right direction.

If you would like more information on purchasing a San Clemente home or are thinking about selling your property, please feel free to contact us for a personalized real estate consultation.

Last week we posted a blog, “Mortgage Rates Continue to Fall to Historic Lows,” which touted the historically low mortgage interest rates, both from the 30-year and 15-year fixed indexes.  As we stated, this is great news not only for buyers, but for current homeowners who could potentially refinance and gain a lower interest rate.  Today on CNNMoney.com, an article was published about mortgage refinancing applications: “Refinancing applications at 15-month high“.  Due to these incredibly low interest rates, mortgage refinancing applications hit a 15-month high last week according to the Mortgage Bankers Association.  The article shows an example of what can happen to your monthly mortgage payments when you refinance to a lower rate; in the example, a homeowner with a 6.5% interest rate on a $200,000 mortgage could save over $250 a month if they refinanced to the current average 30-year rate of 4.5%.

If you are a current homeowner, now may be the time to speak with a mortgage specialist to determine if you are eligible to refinance your mortgage to obtain a lower interest rate.  Buyers are not the only ones who can take advantage of these low rates, so don’t leave yourself open to regret if these low interest rates pass you by.  In these difficult economic times, saving a few hundred dollars per month is nothing to scoff at, and all it takes is a phone call to your lender to see what can be done with your current mortgage. 

According to the article “30-year mortgage at lowest rate since 1971” on CNNMoney.com, the 30-year mortgage rate fell Thursday to 4.44%.  This is the lowest the 30-year rate has fallen since Freddie Mac began tracking the rate in 1971.  The 15-year rate fell to 3.92%, also the lowest since Freddie Mac started tracking this rate in 1991.  This marks the fourth consecutive week that the 3o-year rate has fallen to record lows.

This is great news for buyers looking to purchase San Clemente real estate or for homeowners looking to lock in a low fixed rate on a refinance.  With mortgage rates staying at historical loans, money has never been cheaper to obtain. 

If you would like more information on purchasing a San Clemente home or condo, please do not hesitate to contact us.

According to the article “Talaga homes are O.C.’s hottest sellers“ in the Orange County Register, Talega homes and condos were the hottest-selling properties in all of Orange County in the past month.  As the chart in the article illustrates, as of August 5th there are 72 homes on the Talega resale market, and 36 deals were closed in July, which translates to a 2-month “market time.”  Market time shows how long it would take to sell a new listing in the Talega real estate market based on recent market trends in the area; as you can see by the chart, the top 4 Orange County cities with the hottest resale markets and lowest market times are in South Orange County (Talega #1, Ladera Ranch #2, Rancho Santa Margarita #3, and Aliso Viejo #4).

These trends are very encouraging for both buyers and sellers, but particularly for Talega homeowners who are thinking about selling their property.  For buyers, this data means that if you are on the fence about purchasing a Talega home or condo, now may be a good time to get active as homes are selling at a quick pace.  For sellers, these figures back up the idea that your Talega home may sell a lot quicker than homes in other areas; using an example from the article’s chart, homes in neighboring Dana Point are selling at a market time of 8.6 months, which is pretty eye-opening when you consider that only 2 more homes sold in Dana Point versus Talega in July when there are 4.5 times more homes available in the Dana Point real estate market.

If you would like more information about purchasing or selling Talega or San Clemente real estate, please contact us at your convenience.

An article on the Bloomberg BusinessWeek website illustrates that, according to Freddie Mac, 3o-year fixed mortgage rates fell to an average of 4.93% this week, the 3rd-lowest rate on record in the United States.  As has been the case for the past year or two, interest rates on a variety of mortgage types (fixed and adjustable) continue to hover around historic low points.  However, a key point to take from the article is found in a quote from Metrostudy chief economist Brad Hunter, who states that rates are expected to climb, maybe as early as April.  If you are still on the fence about jumping into the San Clemente real estate market, don’t wait to long as it is an absolute certainty that rates will rise.

To read the complete article, click here: “Mortgage Rates on 30-Year U.S. Loans Fall to 4.93%”

To find out more information about current listings in the San Clemente real estate market, please contact San Clemente Coastal Living’s residential consultants.

With a tight housing market and large inventories of homes for sale, many sellers are looking for ways to gain an edge in the sale of their home.  Remodeling has always been an investment homeowners are willing to make as upgrades and additions add value to the home, both from a sales price standpoint and by making your home stand out from similar homes in your area.  On CNN’s website, there is an interesting article titled “6 Ways to Ensure a Remodeling Project Pays Off” that highlights specific rules that you may want to follow if you are planning to remodel your San Clemente home or condo.  From eco-friendly upgrades to completing simple repairs, the article demonstrates some effective ways to complete your remodel and realize a healthy return on your investment.  Simply adding granite countertops to your kitchen or making a large bedroom into two smaller rooms does not guarantee that your home will stand out in a crazy marketplace; you need to think outside the bubble yet get back to basics in order to make your remodel a success.  Another great point that the article makes is that if you are planning on staying in your home for awhile, now is a great time for remodeling and updating as home improvement contractor bids are 10-40% lower than they were a year or two ago (according to senior economist Bernie Markstein of the National Association of Home Builders).

A couple of months ago, San Clemente Coastal Living published a blog article (found here) explaining the extension of the $8,000 first-time home buyers’ tax credit along with the creation of a tax credit for repeat or “move-up” home buyers that would pay up to $6,500.  As tax time is now upon us, many people have been wondering how to apply for the credit since this is a brand new program.  The IRS has finally published the credit’s requirements on their main website, and a recent article in the Los Angeles Times breaks down the specific forms and documents you will need to successfully claim the tax credit from the IRS.  As we stated before, repeat buyers who have lived in their current principal residence for five of the past eight years and plan to use the new purchase as their primary residence may claim this credit.  The purchase contract must be dated between November 7, 2009, and April 30, 2010, and the close of escrow must occur no later than June 30, 2010; the maximum purchase price is $800,000, and eligible buyers will receive a tax credit of 10% of the purchase price up to $6,500.  Like the first-time home buyers’ program, there are income limits which have increased due to the program’s extension/expansion ($125,000 for single person, $225,000 for married couple filing jointly).  Also, the credit does not have to be paid back to the IRS unless you vacate this new primary residence within 36 months of purchasing the home; if this occurs, you will be required to pay back the credit to the government.  The IRS website has the forms you will need to submit with your 2009 tax return along with a layout of all additional documents you will need to prove that you are eligible for the credit. 

As you can see, this is a great program for first-time buyers or people looking to purchase a new primary residence for themselves, but keep in mind that you only have a few more months to take advantage of this program.  If you would like more information about purchasing a new San Clemente home or condo, please CONTACT US to schedule a personal consultation with one of our San Clemente real estate experts. 

Are you a troubled borrower and want help, but don’t know where to turn?  Do you want to find out if you are eligible for the Obama’s Administration’s mortgage modification and refinancing program?  There are free solutions available to you.

You can apply for help in working with your mortgage servicer through a local Housing and Urban Development (HUD)-Approved Housing Counseling Agency.  Orange County approved HUD Agencies include:

• Fair Housing Council of Orange County
• Neighborhood Housing Services of Orange County
• Consumer Credit Counseling Services of Orange County

If you want to find out if you are eligible for a loan modification and refinance under Obama’s plan, you can apply online for help from your mortgage servicer through MakingHomeAffordable.org .

For a list of local housing counseling resources and the latest events, visit the Orange County Home Ownership Preservation Collaborative or the website for the United States Department of Housing and Urban Development.

For a complete list of current San Clemente Foreclosures and Short-Sales, please contact us via the link or call us directly at 949-281-5444 and we will gladly provide it. 

Last week, Congress passed a bill extending the first-time home buyer tax credit from its original end date of November 30, 2009 to April 30, 2010.  First-time home buyers (defined as someone who has not owned a home during the three years prior to the current purchase) who enter into a binding sales contract between January 1, 2009 and April 30, 2010 are eligible to receive the credit providing that the sale is closed by June 30, 2010.  In addition, the income limits for buyers looking to qualify for this credit have changed.  The original limits for sales between January 1 and November 6, 2009 were $75,000 for single taxpayers and $150,000 for married taxpayers filing jointly; with the new extension, the limits have increased for sales occurring after November 6 to $125,000 for single taxpayers and $225,000 for married taxpayers filing jointly.  As before, the home purchase price must be $800,000 or less to qualify for the credit, and the tax credit will be 10% of the home’s purchase price up to $8,000.  Since this is a tax credit, it does not have to be repaid to the federal government.

The biggest change, one that will affect wider range of recent and future buyers in the San Clemente Real Estate Market, is the new tax credit for move-up and repeat home buyers.  Buyers who do not fall under the first-time home buyer definition may still qualify for a tax credit if they purchase a home after November 6, 2009 and by April 30, 2010.  The stipulations for qualifying for this credit are as follows: completing a binding sales contract to purchase a home between November 6, 2009 and April 30, 2010; completing the home purchase by June 30, 2010; showing proof that you lived in your previously purchased home 5 consecutive years out of the last 8; purchasing a new home priced at $800,000 or less; and meeting the new income requirements listed above ($125,000 for single taxpayers, $225,000 for married taxpayers filing jointly).  If you meet these qualifications, you are eligible for a tax credit equal to 10% of the purchase price up to $6,500, and like the first-time home buyer credit, these monies do not have to be repaid.

For first-time buyers still looking to purchase San Clemente real estate, you now have a longer window in which to find your perfect home and still qualify for the tax credit.  The best thing about the expansion of the tax credit to move-up and repeat buyers is that more people are now eligible to qualify for this free tax credit, not just first-time home buyers.  If you have recently entered into a sales contract or are thinking about buying that vacation condo or upgrading to a new San Clemente home, you now have an opportunity to get money back from the government for your home purchase (provided you meet the above criteria).  This is another sign that the federal government is committed to turning around the housing market, and the best part is that the benefits may be enjoyed by buyers, not the banks.  If you have been on the fence about purchasing your San Clemente Home or Condo, now is the time to start looking.

If you would like more information on the first-time or move-up/repeat buyer tax credits or have questions about the San Clemente Real Estate Market in general, please do not hesitate to contact us.