Rates are unbelievable - High 3's!!

It can be a really tough decision when contemplating whether or not to lock in to a rate when obtaining a mortgage. Generally, when rates are as low as they've been, the conventional wisdom would say to lock - why risk it when the pressure is for rates to go up, at least theoretically.

Well, they keep going down. Fortunately, for those clients who were locked in the last 30-45 days, we've been able to negotiate with the investors to get their rates down. A really great option that we, as brokers, are able to offer.

Now to the good stuff - currently, rates are ridiculously low:
- 30 year fixed conventional rates as low as 3.75%
- 30 year fixed FHA and VA rates as low as 3.75%
And of course rates are even lower for shorter terms, such as 15 years.

One may ask a next logical question like: should I lock if the trend is for rates to keep going down? Well, we'd say the conventional wisdom still suggests that if you're in the market for a mortgage, either to refinance your existing mortgage or to buy a new house, it would be a bit risky to pass on these rates for the hope of them going even lower. Especially when there is the option of renegotiating the rate if it decreases enough from where you happen to be locked.

As always, feel free to contact us if you'd like to discuss your mortgage needs. (505) 830-9685.

Time Can Cost You

Click on the title to link. This is an interesting article about the potential money lost if you wait for the market to "bottom" before buying. The money lost here would be in the form of a higher down payment because of an increased home price. The bottom line (no pun intended) is don't get greedy. The market is so down that now is the time to buy a house. And with rates as low as they are, it is the perfect storm (as we have said before).

If you need a Realtor then you need to call us first. Do not use somebody unless they are referred by someone you trust.

Hidden Victims of the Mortgage Mess

Click on the title to link. I am not sure how "hidden" these folks are, but the article is referencing those who are underwater on their house and are not in foreclosure. This certainly is a huge problem since it may take years for those homes to get back to what they were (depending on many things).

Need To Refi, But Your House Is Underwater?

Click on the title to link. This is an article about two government options if your house is underwater. The thing about these two options is they are not as easy to get as they may make them sound. There has been numerous articles about how these two programs have not really accomplised what they were intended to. But they are, none the less, options.

If you are currently on an FHA or VA loan then you can also refi onto another VA or FHA loan at a lower rate without having to get an appraisal. This would eliminate any "underwater" issues.

Albuquerque in list of top 10 Markets Most Likely to Appreciate

This is of course a speculative article, but heck, we'll cheer the good news about our city.

Albuquerque has always been an area that seems to avoid the ridiculous appreciation and therefore the huge drops in value. However, even Albuquerque has had areas that have seen large uncharacteristic drops in value. The good news is that the research done by Local Market Monitor, as referenced in the linked article, indicates our city may be at the forefront of future appreciation. We're not talking large percentages here, but any positive growth in value would be encouraging.

Albuquerque Foreclosures Surge

Not sure if you saw it or not, but there was an interesting article in the Albuquerque Journal on Sunday about how foreclosures in the metro area have doubled from where they were at this time last year. Again, the sound our broken record, this should be expected by anybody reading this blog regularly. It could get worse because 2011 is supposed to be the peak of foreclosures nationally. Here are some interesting points:

* There were 4,970 foreclosures in Albuquerque in 2009.
* There have been 4,574 foreclosures in Albuquerque between Jan and June of 2010.
* There were 2,688 in all of 2008.
* The unemployment rate in Albuquerque has doubled to 9.2% since 2008 (22,000 jobs).
* Albuquerque is one of 154 metros nationwide to see foreclosures increase this year.
* One out of every 80 households is in foreclosure in Albuquerque.

Mark Boitano , who has been instrumental in fighting against tax lightning, said Albuquerque has seen the "perfect storm" leading to our current economic problems. We totally agree; it is more than just foreclosures. Many of those foreclosures are a result of the other contributing factors. They are home depreciation, a stupid appraisal law that has brought in values lower than reality (at times), unrealistic lending guidelines, a dysfunctional federal hom loan modification system (to say the least), and tax lightning.

All of this then contributes to folks hunkering down, which depresses the real estate market even more, which drepresses the economy even more, and so on. It's a vicious cycle. And all signs point to the fact that it is going to loom for the foreseeable future. As Boitano said in the article, "We're not even at half-time yet."

Home Sales Sink

Click on the title to link. Just a little something to keep you in the loop. This is no surprise to any of you reading this blog. It is going to get worse before it gets better, especially with the spending policies of the current administration. You cannot spend like this without serious consequence (many of which are yet to come).

Refinancing Options If Your Under Water

Click on the title to link. We do not do either of these loans; you would have to go through your current mortgage holder. But they are resources for you if it is a last option, and you want to view these as last resorts.

Want to Sell? Slash The Price

Click on the title to link. This is one of those subjects that nobody wants to hear, but you need to if you are in this boat. Selling your house can be a very emotional experience. Forgive us for this statement...get over it!

You have heard "it is what it is"? Well, it is what it is, and what it is right now is a really horrible market to sell. You will not get out of your house what you think it is worth right now. Buyers are all about feeling like they got a screaming deal. They are not looking for fair, they smell blood and they are going in for the kill. Sound too harsh? Trust us, we see it all the time.

You have two choices when you list your house:
1. List it for what feels good and you think it is worth, and then let it sit there for a log time.
2. List it for what the market will bare, and actually sell it.

Reality is a bitter pill to swallow. Just take your medicine and remember that you are probably going to be on the flip side next when you go buy a house. And this is what we remind people of; it works both ways. So, hopefully, your net out is the same as it would have been. You get less for your house, but you pay less for the next. It does not always work like that (of course), but that is the hope.

Is There A Housing Shortgage Looming?

Click on the title to link. This is an interesting article about how there may actually be a housing shortage in the "nearer" future for some markets. What's interesting is they put New Mexico in that category because they say we are one of the more stable and "recovered" markets. Although we do not fully agree or see that (see yesterday's posts), New Mexico is a very desirable state for folks to live in and we could foresee a future shortgage due to the fact that new construction is so very low right now. But we are not close to that being the case, in our opinion. Still an interesting article, however, that is not far fetched.

The Psycho(logy) (of) Pricing Your Home

Click on the title to link. Probably the single biggest thing we hear and see as to why homes are not selling (besides the fact that buyers are buying) is that people are psycho about what they want to sell their home for. We know, we know, you have put blah, blah, blah into the house, and it has to be worth X. Well, that just aint how it works.

This is a good article regarding the psychology behind pricing your home. Read through it and let us know what you think. What questions does it raise in your mind? Remember this, reality is a bitter pill to swallow. You cannot price your home on what you wish it was worth, what you need for it, or what you would like to get out of it (unless of course you want it to sit there for sale). If you want to sell your home then it will get what the market will bare, and what comps dictate it is worth. Right now, it's just may make you psycho.

7 Fixes to Boost Your Home's Value

Click on the title to link. These are some easy, relatively speaking, things you could do that could help improve the value of your home. If nothing else, they certainly will not hurt the value of your home. If you are selling your home right now they can, literally, be what makes or breaks it for a buyer.

Invisible Threat to Home Values

If you're concerned or just curious about the state of the value of your home and homes in your neighborhood, you'll want to take a look at this article. It presents an interesting twist on this subject.