Ultimate Guide to Closing Your First Real Estate Transaction Closing your first real estate transaction is a big deal. It comes with a mix of excitement and nervousness. You want to close the deal, but you know a lot goes into the process. Once you have secured funding and made a purchase agreement, it is time to start the closing process. This post will cover some of the things you need to know about closing on your first real estate deal. Closing Your First Real Estate Transaction Open the Escrow Account An escrow…
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Tag: Real Estate Trends
How to Calculate Your Profit in 2022 When Selling Your Rental Property
If your rental property investment goal is to reap a big profit when you sell, then understanding your potential taxes upfront is critical. Just knowing you'll pay a tax on any gain you earn and the general tax rate is not enough preparation. You need to look at capital gains, depreciation recapture, net investment income tax, and short versus long-term gain tax rates to get to your real net profit number. The details can be found in the Internal Revenue Service (IRS) Publication 550, Section 4. For starters - if you sell a…
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Mortgage Pre Approval Process to Get the Pre Approval Letter
Whether you are a first-time home buyer, looking to buy a second home or an investment property, the first step is to understand the mortgage pre approval process so that you can get a pre approval letter. What is a pre-approval? The mortgage pre-approval process is where a lender reviews your income, employment, credit, and assets. After reviewing the credit qualifications, the lender will issue a pre-approval letter mentioning how much home loan you might qualify for. Why should I get pre-approved? There are several reasons: You will know how much loan you…
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The “Facebook IPO Effect” and the Silicon Valley Housing Market
As soon as Facebook announced its pending IPO, many Realtors and mortgage professionals in the Silicon Valley were anticipating the ripple effect into the local housing market. Potential home buyers are worried that perhaps home prices will rise with all this new found wealth flooding the market. The dilemma is that consistently low inventory available on the Peninsula is putting pressure on housing prices. The folks at Altos Research, a Mountain View real estate data analytics company, wrote a compelling, and stats filled post on the true reach of the "Facebook Effect" on…
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San Jose Weekly Mortgage Market Commentary 01/03/2010
Your weekly dose of economy and mortgage market news that affects mortgage rates for San Jose Home Home owners and buyers. The Week that was: Another bad week for the bond and mortgage markets. The 10 yr treasury note and mortgage rates have now increased 60 basis points in the past three weeks. Freddie Mac reported in its Primary Mortgage Market Survey that 30-year fixed-rate mortgage (FRM) averaged 5.14 percent with an average 0.7 point for the week ending December 31, 2009, up from last week when it averaged 5.05 percent. The 5-year…
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San Jose Weekly Mortgage Market Commentary 12/20/2009
The week that was: The statement from the last FOMC meeting wasnt much of a change. The fed stuck to keeping the rates low for "extended period". But how "extended" is "extended" - now that's anybody's guess! Freddie Mac's weekly Primary Mortgage Market Survey reported 30-year fixed-rate mortgage (FRM) averaged 4.94 percent with an average 0.7 point for the week ending December 17, 2009, up from last week when it averaged 4.81 percent. Last year at this time, the 30-year FRM averaged 5.19 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.37…
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San Jose Weekly Mortgage Commentary 12/6/09
The week that was
- Oct existing and new home sales were much better than economists thought, the manufacturing sector better than thought, and auto sales stronger.
- The Nov employment report on Friday really shook things up; job losses only 11K with the unemployment rate lower, to 10.0% frm 10.2% in Oct and Sept.
- Interest rates increased last week by 25 basis points for the 10 yr note and 30 yr mortgages. While there is a general view that the Nov employment report was skewed a little and the decline in job losses an anomaly, with long term interest rates at these historic low levels, no one is willing to stand on that thought and rates continued to increase.
San Jose Weekly Mortgage Market Commentary 11/29/2009
The week that was:
- The minutes from the 11/4 FOMC meeting were released. Fed's minutes reiterated the Fed isn't anywhere close to increasing interest rates.
- Fed governors and regional bank presidents predicted the jobless rate will range from 9.3% to 9.7% in next year fourth quarter.
- Oct personal income increased 0.2% and spending was up 0.7%.
- The University of Michigan consumer sentiment index was 67.7 from 70.6 on the final read in Oct and slightly better than 66.0 two weeks ago.
- Oct new home sales jumped 6.2%. There is a 6.7 month supply based on current sales, the lowest level since 12/06.
- The Mortgage Bankers Association reported for the week ending November 20, 2009, mortgage loan application volume decreased 4.5% from one week earlier. The Refinance Index decreased 9.5% from the previous week The Purchase Index increased 9.6% from one week earlier.
- The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.82% from 4.83%, with points increasing to 1.19 from 1.18 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.
Affordability Index Dropping in Santa Clara – Why is that a bad news for First-Time Buyers
Affordability Index has been dropping in Santa Clara county. California Association of Realtors (C.A.R.) measures First-time Buyer Housing Affordability Index (FTB-HAI) on a quarterly basis. This measures the percentage of households that can afford to purchase an entry-level home in California. The higher the index, more affordable it is for a first time buyer to buy a home. Before getting into the numbers, lets first quickly understand how it is calculated. The measurement is based on three main factors: Median Price of existing Single-Family homes (based on C.A.R.'s monthly existing home sales survey)…
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Existing Home Sales Jumps 10.1%
Home sales jumped in October, rising far more than expected as First Time Home Buyer Tax Credit offset fears about joblessness. Sales of existing homes increased by 10.1% to a 6.10 million annual rate from 5.54 million in September, the National Association of Realtors (NAR) said Monday. Total housing inventory at the end of October fell 3.7 percent to 3.57 million existing homes available for sale, which represents a 7.0-month supply at the current sales pace, down from an 8.0-month supply in September. The supply of homes on the market is now at…
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