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Monday, March 23, 2015

Solar Panels Can be a Deal Killer!


DAILY REAL ESTATE NEWS | MONDAY, MARCH 23, 2015

Studies have suggested that the addition of solar panels on a home can boost a home's value. But sometimes those solar panels can sabotage a deal when it comes time to sell.
Selling Green Homes
More companies are offering home owners a contract to lease solar panels where they pay no upfront costs for the installation and could start saving on their electricity bills right away. But home owners who sign onto these deals are finding some snags when they go to sell.
Potential buyers are leery of taking on the leasing payment contracts for the next 15 to 17 years because they often have to qualify on credit from the solar companies themselves. Also, some buyers are hesitant to sign a contract because they're concerned the solar equipment will become obsolete or won't amount in a big savings in the end after paying the leasing fee.
Some home buyers are refusing to buy the house unless the seller buys out of the remaining lease payment stream -- which could be $15,000 or more.
For example, a Fresno, Calif., couple trying to sell their house told The Los Angeles Times that it attracted multiple offers but two sets of buyers backed out of the contracts due to the leased solar panels on their roof. The buyers felt the long-term cost of the lease agreement was too high or they were concerned about the credit qualifications they had to meet in order to take over the lease. Ultimately, the couple had to pay $22,000 to break the lease with the solar company so that they could sell the house.
With the rising popularity of solar, Lynn Farris, a real estate professional in Windermere Hulsey & Associates in Vacaville, Calif., says she's already seen several disputes arise over solar panel leases, and she expects the problem to get worse.
After all, residential solar installations are rising dramatically -- up by 50 percent per year since 2012, according to the Solar Energy Industries Association.
Source: "Leased Solar Panels Can Complicate – or Kill – a Home Sale," The Los Angeles Times (March 22, 2015)


An Expert In Your Court
Robert De La Rosa
"CALL NOW 909.271.5640"
"Get Qualified Now By A Loan Professional" 

Coldwell Banker Town & Country
501 W Redlands Blvd
Redlands CA, 92373
CalBre 01435824

Thursday, March 19, 2015

Mortgage Lenders Say Credit Is Easing!



DAILY REAL ESTATE NEWS | THURSDAY, MARCH 19, 2015
More lenders expect mortgage demand and profit margins to increase over the next three months, according to Fannie Mae's first quarter 2015 Mortgage Lender Sentiment Survey.
Opening the Credit Box
More lenders say the credit tightening is softening, according to the survey. Seventy-one percent of lenders surveyed about government-sponsored enterprise purchase loans say they expect purchase mortgage demand to rise over the next three months. That’s a notable increase from last year, when 59 percent of lenders were optimistic about an increase.
What’s more, 41 percent of lenders report they expect their profit margins to rise, compared to only 21 percent who were upbeat about their profits last year.
"These results are consistent with our view that an improving economy, strengthening employment, and increasing consumer confidence should support a modest housing expansion in 2015, after an uneven and disappointing year for housing activity in 2014," says Doug Duncan, Fannie Mae’s chief economist.
The message seems to be getting out to consumers too. Fannie Mae’s recent National Housing Survey, a poll of around 1,000 Americans, showed that 54 percent of consumers say that they believe getting a mortgage is now easy – a survey high.
Source: Fannie Mae

An Expert In Your Court
Robert De La Rosa
"CALL NOW 909.271.5640"
"Get Qualified Now By A Loan Professional" 

Coldwell Banker Town & Country
501 W Redlands Blvd
Redlands CA, 92373
CalBre 01435824

Wednesday, March 18, 2015

Freddie's 3% Down Payments Start Next Week!


DAILY REAL ESTATE NEWS | WEDNESDAY, MARCH 18, 2015

Freddie Mac will begin offering mortgages with down payments of only 3 percent — the first time they've been this low on the GSE's loans in nearly five years — starting March 23. The move is expected to make more credit available to entry-level borrowers.
Opening the Credit Box
"By launching our 3 percent down payment mortgage now, at the start of the spring homebuying season, lenders will be ready to serve qualified working families who are ready to buy and keep the recovery going," Dave Lowman, executive vice president for Freddie Mac's single-family business, writes on its Executive Perspectives blog.
Fannie Mae began insuring 3 percent down payment mortgages in December.  
The Federal Housing Finance Agency, the conservator of Fannie Mae and Freddie Mac, recently said it wanted to make it a priority to "work to increase access to mortgage credit for creditworthy borrowers," according to FHFA's 2015 Scorecard for Freddie Mac. Tight credit conditions and high down payment requirements in recent years have been blamed for sidelining potential home buyers and causing a sluggish housing recovery.
Besides 3 percent down payments, Freddie Mac's Our Home Possible Advantage Program, which is aimed at supporting first-time buyers as well as low- and moderate-income borrowers, is allowing no minimum from borrowers in contributions. That means parents or relatives now can cover 100 percent of the down payment through gifts.
Source: “Advantage: Home Buyers,” Freddie Mac (March 9, 2015)


An Expert In Your Court
Robert De La Rosa
"CALL NOW 909.271.5640"
"Get Qualified Now By A Loan Professional" 

Coldwell Banker Town & Country
501 W Redlands Blvd
Redlands CA, 92373
CalBre 01435824

Thursday, March 12, 2015

Mortgage Rate Fluctuations Have Big Impact! www.TheCaliforniaPropertyConnection.biz


DAILY REAL ESTATE NEWS | THURSDAY, MARCH 12, 2015

Even the slightest movement in mortgage rates can translate into more – or less – purchasing power for your clients.
John Burns Real Estate Consulting recently looked at how the fluctuation in rates effects the average consumer. The firm found that a typical family earning $60,000 a year could afford around $1,800 month for the mortgage payment.
In 2000, a 30-year fixed-rate loan, which averaged an 8 percent mortgage rate, would have qualified that family for a $245,000 loan.
But at a 4 percent mortgage rate – which current rates are averaging – that same family can qualify for a $377,000 loan.
"In other words, each 1 percent drop in interest rates in the last 15 years has allowed home sellers to raise the price 12 percent," according to Jon Burns Real Estate Consulting’s analysis.
Source: "How Tiny Mortgage Rate Moves Can Buy You a Lot," CNBC (March 10, 2015)


An Expert In Your Court
Robert De La Rosa
"CALL NOW 909.271.5640"
"Get Qualified Now By A Loan Professional" 

Coldwell Banker Town & Country
501 W Redlands Blvd
Redlands CA, 92373
CalBre 01435824

Wednesday, March 4, 2015

www.TheCaliforniaPropertyConnection.biz


4 Tips to Determine How Much Mortgage You Can Afford


By knowing how much mortgage you can handle, you can ensure that homeownership will fit in your budget.
Homeownership should make you feel safe and secure, and that includes financially. Be sure you can afford your home by calculating how much of a mortgage you can safely fit into your budget.

Why not just take out the biggest mortgage a lender says you can have? Because your lender bases that number on a formula that doesn’t consider your current and future financial and personal goals.

Think ahead to major life events and consider how those might influence your budget. Do you want to return to school for an advanced degree? Will a new child add day care to your monthly expenses? Does a relative plan to eventually live with you and contribute to the mortgage?

Consider those lifestyle issues as you check out these four methods for estimating the amount of mortgage you can afford.

1.  Prepare a detailed budget.

The oldest rule of thumb says you can typically afford a home priced two to three times your gross income. So, if you earn $100,000, you can typically afford a home between $200,000 and $300,000.

But that’s not the best method because it doesn’t take into account your monthly expenses and debts. Those costs greatly influence how much you can afford. Let’s say you earn $100,000 a year but have $1,000 in monthly payments for student debt, car loans, and credit card minimum payments. You don’t have as much money to pay your mortgage as someone earning the same income with no debts.

Better option: Prepare a family budget that tallies your ongoing monthly bills for everything -- credit cards, car and student loans, lunch at work, day care, date night, vacations, and savings.

See what’s left over to spend on homeownership costs, like your mortgage, property taxes, insurance, maintenance, utilities, and community association fees, if applicable.

2.  Factor in your downpayment.

How much money do you have for a downpayment? The higher your downpayment, the lower your monthly payments will be. If you put down at least 20% of the home's cost, you may not have to get private mortgage insurance, which protects the lender if you default and costs hundreds each month. That leaves more money for your mortgage payment.

The lower your downpayment, the higher the loan amount you’ll need to qualify for and the higher your monthly mortgage payment.

But, if interest rates and/or home prices are rising and you wait to buy until you accumulate a bigger downpayment, you may end up paying more for your home.

3.  Consider your overall debt.

Lenders generally follow the 43% rule. Your monthly mortgage payments covering your home loan principal, interest, taxes and insurance, plus all your other bills, like car loans, utilities, and credit cards, shouldn’t exceed 43% of your gross annual income.

Here’s an example of how the 43% calculation works for a homebuyer making $100,000 a year before taxes:

1.    Your gross annual income is $100,000.

2.    Multiply $100,000 by 43% to get $43,000 in annual income.

3.    Divide $43,000 by 12 months to convert the annual 43% limit into a monthly upper limit of $3,583.

4.    All your monthly bills including your potential mortgage can’t go above $3,583 per month.

You might find a lender willing to give you a mortgage with a payment that goes above the 43% line, but consider carefully before you take it. Evidence from studies of mortgage loans suggest that borrowers who go over the limit are more likely to run into trouble making monthly payments, the Consumer Financial Protection Bureau warns.

4.  Use your rent as a mortgage guide.

The tax benefits of homeownership generally allow you to afford a mortgage payment -- including taxes and insurance -- of about one-third more than your current rent payment without changing your lifestyle. So you can multiply your current rent by 1.33 to arrive at a rough estimate of a mortgage payment.

Here’s an example: If you currently pay $1,500 per month in rent, you should be able to comfortably afford a $2,000 monthly mortgage payment after factoring in the tax benefits of homeownership.

However, if you’re struggling to keep up with your rent, buy a home that will give you the same payment rather than going up to a higher monthly payment. You’ll have additional costs for homeownership that your landlord now covers, like property taxes and repairs. If there’s no room in your budget for those extras, you could become financially stressed.

Also consider whether or not you’ll itemize your deductions. If you take the standard deduction, you can’t also deduct mortgage interest payments. Talking to a tax adviser, or using a tax software program to do a “what if” tax return, can help you see your tax situation more clearly.



An Expert In Your Court
Robert De La Rosa
"CALL NOW 909.271.5640"
"Get Qualified Now By A Loan Professional" 

Coldwell Banker Town & Country
501 W Redlands Blvd
Redlands CA, 92373
CalBre 01435824

Tuesday, March 3, 2015

How Long is That Remodel Going to Take? www.TheCaliforniaPropertyConnection.biz


How Long is That Remodel Going to Take?

Some remodeling projects go on for weeks and make a mess of your home life. Here’s what you need to know to survive.
Renovations can take weeks -- and sometimes months. That means endless days of subcontractors traipsing through your home, noisy tools, and major dust. Even some minor projects can disrupt your daily routine. Before you begin to remodel, know what’s in store for you and your family.
We’ve highlighted nine common remodeling projects that homeowners are likely to undertake -- projects that require professional contractors and that take at least one week to complete.

We also talked with veteran remodeler Paul Sullivan, who has renovated homes for 34 years and is president of The Sullivan Company in Newton, Mass.

Sullivan helped us rate each project on a “disruption scale” of 1 to 10, with 1 being the least disruptive to your everyday home life and 10 the most. If your project reaches a 10, consider getting a hotel room for the duration.

Attic Bedroom Conversion

National average cost: $51,696

Time: 8 to 10 weeks

What’s involved: A project that converts unconditioned attic space into a bedroom must include egress windows and at least one closet. Most likely, you’ll extend plumbing, HVAC ducts, and electrical wiring to the attic, and add insulation, drywall, and flooring.

Disruption scale: 3  Luckily, most of the work is in the attic and doesn’t involve your main living areas. You’ll have to put up with contractors moving through the house to get to the top, so provide drop cloths or old rugs to protect your floors. Also, plaster dust from drywall installation and finishing likely will float throughout your home, so you’ll want to change furnace filters every two to three weeks during the project.

Related: Install an Attic Dormer Window
Refinishing Hardwood Floors

National average cost: $1.50 to $4 per square foot

Time: 2 to 14 days

What’s involved: Sanding, staining, and sealing wood floors.

Disruption scale: 9  Whether you’re refinishing one floor or an entire house, the process involves a world of hurt. You have to move furniture and cover surfaces to protect from wood dust, which disrupts the flow of family life. And if you use oil-based sealants, you’ll have to live somewhere else to avoid breathing VOC fumes. Plus, you won’t be able to walk on floors for at least two days after the last coat of sealant is applied.

Related: Should You Refinish Hardwood Floors Yourself?

Bathroom Remodel

National average cost: $16,724

Time: 2 to 3 weeks

What’s involved: Turning your outdated bathroom into a dream spa includes updating plumbing fixtures, installing ceramic tile around a porcelain-on-steel tub, replacing an old toilet with a low-flow, comfort-height model, and installing ceramic floor tiles and solid-surface vanity counters.

Disruption scale: 7 to 10  If you’re remodeling your only bathroom, expect major disruption of your personal hygiene routine. You’ll have to wash in the kitchen sink, and install a portable potty in the yard or make friends with a neighbor when nature calls. You’ll have less pain if you have more than one bathroom in the house. Even then, you’ll suffer water outages during plumbing updates. And if you’re remodeling a master bath, you must put up with workman tromping through your bedroom.

Related: 7 Smart Strategies for Bathroom Remodeling

Major Kitchen Remodel

National average cost: $56,768

Time: 8 to 12 weeks

What’s involved: Replacing cabinets, installing a kitchen island and countertops, replacing appliances, adding lighting, and changing flooring.

Disruption scale: 8  Kitchens are the heart of the home, so when they’re down, you’ll eat out more, wash coffee cups in bathroom sinks, and hold family meetings in the family room where your microwave and fridge now live. To ease the disruption, your contractor can easily set up a construction sink somewhere by running a couple of hoses from existing kitchen plumbing through the dust wall to a make-shift kitchen in an adjacent room.

Related: 6 Green Kitchen Remodeling Tips

Minor Kitchen Remodel

National average cost: $19,226

Time: 1 to 2 weeks

What’s involved: Replacing cabinet box fronts, adding new hardware, updating appliances, sinks, and faucets, and installing new flooring.

Disruption scale: 5  Kitchen facelifts are less disruptive merely because they’re finished faster than major remodels. You’re mainly pulling and replacing, so plumbing and electrical can stay put, and you’ll still have access to your fridge until the new one arrives.

Related: 10 Tips for a Low-Cost Kitchen Facelift

Basement Remodel

National average cost: $62,834

Time: 4 to 6 weeks

What’s involved: Finishing the lower level of a house to create an entertaining area, wet bar, bathroom, and egress windows required by code.

Disruption scale: 2  Seems counter-intuitive, because turning unfinished space into extra living space requires all the finishes of a new addition -- plumbing, electrical, flooring, walling, and insulation. But the good news: Work is confined to a part of the house you rarely use. Contractors can enter and exit through the basement door (if you have one), and noise and dust are easily confined. The biggest disruptions come from periodic electrical and plumbing outages.

Related: Add an Egress Window to Your Finished Basement
Roof Replacement (Asphalt Shingles)

National average cost: $19,528

Time: 1 week

What’s involved: Removing and replacing roofing moisture barriers, flashing, and shingles.

Disruption scale: 1  Replacing your roof is one of the least inconvenient remodeling projects you can do. You’ll have to put up with some banging, move your cars away from the house, and keep dogs and kids out of the yard during the demolish phase. Roofers will cover the ground around the job to corral debris; and after the job, they’ll go over your yard with a magnetic roller to pick up stray nails.

Related: Hurricanes: Protect Your Roof

Siding Replacement (Vinyl)

National average cost: $12,013

Time: 1 to 2 weeks

What’s involved: Removing and replacing old vinyl siding with new vinyl siding.

Disruption scale: 3  You’ll endure lots of banging around your house as the new siding goes up. If noise bothers you, stick in your earbuds and listen to something soothing. Even though contractors will cover the area around the house, expect some debris to litter the yard. Keep curious kids and pets inside while work is being done to avoid accidents.

Related: Siding: A Guide to the Options
Two-Story Addition

National average cost: $161,925

Time: 16 to 20 weeks

What’s involved: Framing, adding utilities, and finishing a 24-foot-by-16-foot wing including a family room and second-floor bedroom and bathroom.

Disruption scale: 4  Building an addition is like constructing an entire house attached to your house. But oddly, it’s life as usual until the very end, when you break through the wall that connects the two structures. Expect a lot of noise and trucks in your driveway throughout the project. The last one to two weeks, when you connect the structures, you’ll have to put up with some commotion -- demolition, carpentry, drywall installation, and painting. Figure you’ll have a major cleanup job throughout the house when the construction is over.

Related: Hidden Costs of a Two-Story Addition



An Expert In Your Court
Robert De La Rosa
"CALL NOW 909.271.5640"
"Get Qualified Now By A Loan Professional" 

Coldwell Banker Town & Country
501 W Redlands Blvd
Redlands CA, 92373
CalBre 01435824

Monday, March 2, 2015

REALTORS® More Confident for the Spring!


DAILY REAL ESTATE NEWS | MONDAY, MARCH 02, 2015

REALTORS® are more optimistic as they head into the spring-selling season, with their housing outlook for the next six months looking more upbeat, according to the January 2015 REALTORS® Confidence Index, a survey of more than 4,000 REALTORS® on the latest housing conditions in their local markets. REALTORS® citied the effect of mortgage rates -- that have been less than 4 percent lately -- and a reduction in Federal Housing Administration mortgage insurance premiums as two big reasons for renewed optimism. 
Spring Housing Optimism
Some markets, however, did show a slight dip in confidence in January. Real estate professionals in Massachusetts, Pennsylvania said the harsh weather was causing market slowdowns. Also, states with more oil and gas extraction activity, like in Texas, reported growing concerns about the impact that the steep drop in oil prices would have on their market. In coastal areas – like Florida and New Jersey – some real estate professionals expressed continued concern over uncertainty regarding flood insurance rates that were affecting sales.
Still, overall, REALTORS® nationwide are reporting greater buyer activity in their markets, but said that there was not enough inventory of homes for-sale to meet the increase in demand. Inventory was reported as "low" in most areas, particularly for "affordable" listings. Also, a low level of new home construction, they say, was contributing to the lack of inventory.
The biggest obstacles facing the market, according to REALTORS® surveyed: qualifying for a mortgage (although that has been showing signs of improvement); modest income growth among home buyers; weak credit and income profiles; and for condo buyers in facing persistent problems with projects not meeting eligibility guidelines for FHA or VA or conventional financing.
About 47 percent of REALTORS® surveyed reported that the price of their "average home transaction" was higher in January compared to a year ago. The median home price of an existing home as of December 2014 was $209,500, up from $197,700 in December 2013.
REALTORS® continue to expect home prices to pick up modestly over the next year, with the median appreciation expected about 3.2 percent this year. States with the most upbeat price expectations include the District of Columbia, Florida, and Nevada, where real estate professionals there expect home prices to increase about 4 to 5 percent this year.
Source: “REALTORS® Confidence Index” (January 2015) and “REALTORS® Confidence Index Survey: January 2015 Survey Highlights,” National Association of REALTORS® Economists’ Outlook Blog (Feb. 24, 2015)


"Get Qualified Now By A Loan Professional" 
An Expert In Your Court
Robert De La Rosa
"CALL NOW 909.271.5640"

Coldwell Banker Town & Country
501 W Redlands Blvd
Redlands CA, 92373
CalBre 01435824