I really believe this QE3 is just a bailout of the banks on their HAMP refinances. It transfers the loan losses to the tax payers.
Published: Friday, 14 Sep 2012 | 1:05 PM ET
For those of you who expected to wake up to a 30-year fixed rate mortgage below 3 percent, you may as well go back to sleep.
Yes, rates moved down, 0.125 percent, according to several sources, but that was not as low as some had predicted. Remember, we hit the low of 3.49 percent in July, but then we jumped back into the mid to high threes. (Read More: Fed Pulls Trigger, to Buy Mortgages in Effort to Lower Rates.)
“Short term, people who are thinking about moving really need to lock in,” says Craig Strent of Maryland-based Apex Home Loans. He is concerned that the strong consumer sentiment number that came in today could cause the Federal Reserve to pull back on its buying in the future. “When this thing turns, it’s going to be fast. Just pulling back a little sends a message,” adds Strent.
But others argue that the housing market is still on such shaky ground that that’s unlikely to happen. Mortgage applications to purchase a home have declined five of the last six months, according to Diane Swonk of Mesirow Financial.
“I think that this will be a trillion dollar commitment from the Fed,” said Swonk on CNBC’s “Squawk on the Street.” “Home values appreciating, that’s something very important in this economy getting more legs and moving forward more rapidly.” (You can watch the interview here.)
So say mortgage rates could dip lower than the latest record, perhaps to around 3.25 percent. How does that help me? Does it boost my home price? (Read More: Will Fed’s Mortgage Buying Juice the Housing Recovery?)
On the one hand, lower mortgage rates give potential buyers more purchasing power. “A 0.125 percent drop in rates adds 1.5 percent to your maximum purchase price (given all the other fees),” according to Dan Green at Waterstone Mortgage. “Assuming a mortgage payment of $1500, that’s the difference between $404,800 and $411,000-ish.” So that is how much more house you can buy. If people can buy more house, then perhaps home prices will rise.
Wouldn't you be embarrassed to overpay by $100,000? Only fools buy houses without knowing neighborhood values. Don't be a fool. Don't suffer the pain of an underwater mortgage. The surest way to lose your house is to overpay for it. Our reports identify overvalued and undervalued neighborhoods. Use it to broaden or narrow your search area. Savvy buyers work with us to find bargains. We've saved thousands from financial ruin. Let us save you too. If you want peace of mind while shopping for your next home, sign up for our monthly market newsletter.
We're sorry, but it seems that we're having some problems loading MLS # P834584 from our database. Please check back soon.
Proprietary OC Housing News home purchase analysis
$495,000 …….. Asking Price
$495,000 ………. Purchase Price
9/10/2012 ………. Purchase Date
$0 ………. Gross Gain (Loss)
($39,600) ………… Commissions and Costs at 8%
($39,600) ………. Net Gain (Loss)
0.0% ………. Gross Percent Change
-8.0% ………. Net Percent Change
#NUM! ………… Annual Appreciation
Cost of Home Ownership
$495,000 …….. Asking Price
$17,325 ………… 3.5% Down FHA Financing
3.60% …………. Mortgage Interest Rate
30 ……………… Number of Years
$477,675 …….. Mortgage
$124,725 ………. Income Requirement
$2,172 ………… Monthly Mortgage Payment
$429 ………… Property Tax at 1.04%
$0 ………… Mello Roos & Special Taxes
$124 ………… Homeowners Insurance at 0.3%
$498 ………… Private Mortgage Insurance
$0 ………… Homeowners Association Fees
$3,222 ………. Monthly Cash Outlays
($326) ………. Tax Savings
($739) ………. Equity Hidden in Payment
$20 ………….. Lost Income to Down Payment
$144 ………….. Maintenance and Replacement Reserves
$2,321 ………. Monthly Cost of Ownership
Cash Acquisition Demands
$6,450 ………… Furnishing and Move In at 1% + $1,500
$6,450 ………… Closing Costs at 1% + $1,500
$4,777 ………… Interest Points
$17,325 ………… Down Payment
$35,002 ………. Total Cash Costs
$35,500 ………. Emergency Cash Reserves
$70,502 ………. Total Savings Needed
The property above is available for sale on the MLS.Contact us for a comparative market analysis, a cost of ownership analysis, or information on how you can make an offer today!
Cost of Ownership AnalysisAre you ready to make an offer, but you are worried the cost of ownership is really more than you can afford? Don't make a mistake that might cost you the family home, your life savings, and your good credit! Get the advice of a seasoned professional. Contact us at firstname.lastname@example.org today! We produce detailed reports showing the cost of ownership based on the most likely transaction price and current financing terms. You will know how much you will spend each month in out-of-pocket expenditures and the true monthly cost of ownership factoring in tax deductions, loan amortization, and opportunity costs on your down payment. In addition, we show you how this cost compares to a rental of equal quality to make sure buying is the right decision for your situation. An OC Housing News Cost of Ownership Analysis will calm your worries and give you peace-of-mind. Let us show you the way! Reports are available for properties in the Southern California MLS coverage area, and are generally delivered within 24-72 hours. If you wish to receive multiple properties, please contact us at email@example.com, and we will prepare the reports for you.
OC Housing News FREE Guides!
Nearby ForeclosuresGain a competitive advantage over other buyers. By locating distressed properties -- before they hit the MLS -- you can discover where tomorrow's REOs and short sales will appear. Most of these properties are not listed on the MLS, but they will be soon. Research properties in advance and get a jump on your competition. Don't miss out on another deal because you couldn't act quickly. Use this tool to your advantage! The red properties are already bank owned. As soon as REO asset managers prepare them for sale, they will be on the MLS. Get ready! The green and blue properties have owners who are not paying their mortgages. They may be offered as short sales, or they may go through foreclosure and become REO. Either way, they will also likely be available on the MLS soon. Find your next home! Be prepared to offer on these properties by researching them in advance or risk losing out to buyers who are have done their homework. Start your research today! To find distressed properties, enter your desired location and press search. Scroll through list by pressing "next."
Comparative Market AnalysisAre you ready to make an offer, but you are worried you will either (1) underbid and miss the property or (2) overbid and pay too much? Don't make a mistake and miss your dream home, or worse yet, overpay for it! Get the advice of a seasoned professional. Contact us at firstname.lastname@example.org today! Are you thinking about selling, but you are worried you will either (1) overprice and fail to sell or (2) underprice and leave money at the negotiating table? We are the experts in real estate valuation. Work with us to set the right prices to sell your property quickly for the largest amount possible. Let us show you what your property is worth today! An OC Housing News Comparative Market Analysis will calm your worries and give you peace-of-mind. See for yourself right now! Reports are available for properties in the Southern California MLS coverage area, and are generally delivered within 24-72 hours. If you wish to receive multiple properties, please contact us at email@example.com, and we will prepare the reports for you.
530 East BARKLEY Ave
3 bd / 1.75 ba
1,279 Sq. Ft.
1323 East ORANGE GROVE Ave
3 bd / 1.75 ba
1,358 Sq. Ft.
1401 East OAKMONT Ave
3 bd / 1.25 ba
1,213 Sq. Ft.
1214 West CHERRY Dr
3 bd / 2 ba
1,123 Sq. Ft.
767 North LINCOLN St
3 bd / 2 ba
1,469 Sq. Ft.
331 East TRENTON Ave
5 bd / 2.5 ba
1,538 Sq. Ft.
1535 East EVERETT Pl
3 bd / 2.5 ba
1,598 Sq. Ft.
119 South MAIN St
3 bd / 2.5 ba
1,617 Sq. Ft.
664 West PALMYRA Ave
2 bd / 1 ba
1,011 Sq. Ft.
567 East VAN BIBBER Ave
2 bd / 2 ba
1,011 Sq. Ft.