Can you live without Starbucks for a day (or 2)?

How great would you feel if instead you donated $5 to help a wounded warrior (feel free to double or triple that number if you feel so inclined)?

We’re helping raise money to provide a mortgage-free home to a veteran bomb squad amputee who lost his legs in the line of duty.

Follow your heart and click here to donate (oh and don’t forget to share with your facebook & twitter friends): http://www.crowdrise.com/MilitaryHomeGiveaway/fundraiser/bmboise

Want the low down (with no sales pitch) from the guys who track the numbers in Ada County?

Click here to get the low down from ACAR (Ada County Association of Realtors).

I like to believe that I am a positive person… you know, glass half full and all that stuff.  Which makes me hesitate to be the bearer of bad news.

But I also believe that knowledge is power… so here goes.

HUD has announced that FHA loans are about to get more expensive.  Sheeesh!

• Monthly mortgage insurance premium to be raised from 1.25% to 1.35% for minimum down loans.
• Monthly mortgage insurance premium to be for the life of loan rather than until the loan reaches 78% LTV.

This is BIG deal and translates into THOUSANDS of dollars for homeowners.  All of this happens for folks who get FHA case numbers on or after April 1, 2013.

Here’s how real estate professionals can be a hero.  Have your lenders order their FHA case numbers before April 1^st.  You clients will need to be under contract by this time… and you’ll need to communicate closely with your lender if you are cutting the deadline close.

As always, I am here to help.  Let me know if you have questions on this or any other mortgage topic.

Now back to my cheerful self – Have a great day!

There is a difference between the price of a house and how much it costs you. Price is how much you pay for a house and “cost” is tied to your mortgage rate.  Check out this graphic that shows you more.  Take a look at the bottom to see where the Mortgage Banker’s Association is predicting “costs” to go in 2013:

The housing market is taking off again — finally! — not only in the Boise area, but also around the country. This is great news for sellers, but what about buyers? What’s the good news in a market where competition for prized properties will increase, home prices are rising and mortgage rates might too?

More Choices, Better Living
In the first place, a healthier housing market means more desirable locations to purchase property. Locations that had been suffering from a double whammy of high unemployment and a terrible housing market — often with numerous abandoned and vacant homes — are seeing a turnaround, providing homebuyers with more choices when it comes to finding a place they want to live. These areas can only improve as families move in and contribute to the local economies.

In fact, according to the National Association of Home Builders/First American Improving Markets Index, at the beginning of October, 103 markets across the country were considered to be improving. The index looks at employment, housing prices and single-family housing growth to determine these improving areas. They include metro areas in Florida, Texas, Indiana, Michigan and many more throughout the U.S.

Resale Values
In addition to more cities becoming desirable places to live, real estate is more obviously becoming a good investment. We say “more obviously” because despite the recent slump, in the long run real estate turns a profit in nearly every market. Period. Now your clients will be able to see that for themselves, as prices slowly creep up. Whether they are looking for a primary home, second home or investment property, now is a great time to get into the market.

Buy low, sell high is a very old sales adage and one that should be taken advantage of in this market!  Buy soon before prices rise any more, so you can maximize your profits when you choose to sell.

Delays Can Hurt Purchasing Power
Remember, too, that while mortgage rates have been hovering at record lows, there is no guarantee they won’t begin to climb — and keep going. Improvements in the economy, of which housing market improvements are an indication, will surely stimulate a rise in mortgage interest rates. As we’ve said before, even a rise of one percentage point lowers a buyer’s purchasing power by about 10 percent. That’s often the difference between affording a house in the $300,000 range versus the $200,000 range.

Here’s a graphic to help you understand the difference between the COST of a home and the PRICE of a home. The cost is determined by the price and the mortgage interest rate which is available at the time. Below is a list of the interest rates over the last ten years and the impact they have on a $100,000 mortgage payment:

dean and shanna tucker boise mortgage

 If you’re lucky to be in one of the areas of the country like Boise, Idaho where the housing market is recovering and quality, well-priced homes are actually enjoying multiple bids, congratulations!  The downside is you need to prepare for the possibility of losing out on a home if you’re trying to buy.

The market is changing and many desirable homes may get multiple offers meaning yours may not be the winning bid. The most obvious way you can better your odds of purchasing the home you really want by making an offer higher than other offers.  Sometimes this means offering even more than the asking price.  As you can see from the chart below, offering a few thousand dollars over the asking price can translate into only a few dollars more per month added to their mortgage payments:

Be sure to talk with your lender to get approval for a higher loan amount before you make the bid.  Your lender can also provide you with a personalized chart showing different payment scenarios based on the amounts you might offer for the home.

Here are 4 other non-monetary concessions that might help you win your bid:

1)    Let the seller pick the closing date

2)    Let the seller pick the title or closing agent.

3)    Provide a rock solid loan approval with your offer… and make sure it’s from a local reputable lender that the realtors trust.  Online or out of town lenders can slow down the process.

4)    Offer larger earnest money deposit to show the seller you are serious.  These funds are applied to your down payment at closing.

Working with an experienced Realtor® on your side can help too.  They can help you know when it’s time to walk away if the negotiations get unreasonable.  An experienced Realtor® can also structure the contract in a way that protects your earnest money if the home inspection uncovers problems or the appraisal comes in low.  If you need more information or want some questions answered, please don’t hesitate to contact us for a no-cost consultation.