“The Federal Reserve’s policy statement last week and ongoing market concerns over the European debt market carried momentum into this week allowing all mortgage products in our survey to reach all-time record lows.”

Do you agree with Mr. Nothaft statement? I mean if the 30-year-fix-rate-mortgage is at an all time low, which I would really think an all time low mortgage rate would be lesser than 4.22%; would this mean the home prices are still at an “all time high” especially in the DC metro area?

Source: Market Watch

But what if you have answered all these questions that are listed above and you find out that the home is a short sale? Do you know all the particulars of what a short sale involve? If not, Jack Wang, who is a DC Condo Domain Real Estate Consultant, gives us the answer to what a short sale is.  Check out what Jack Wang has to say about this….

Q: I really like this home that I found and it is a short sale. What is a short sale?

A: A short sale is a legal lender approved solution designed to assist those home owners who are financially strapped to get out from under their mortgage debt. In short sales, the mortgage holder agrees to take less than what home owner owes on the property.

An example of a short sale would be is if a home owner owes $400,000 on their current mortgage and their home is only worth $375,000. The lender in this example would agree to take a short fall of $25,000 at closing. The mortgage holder may completely wipe out the debt and the home owner does not have to repay the $25,000.

The home owner benefits in this situation because they get out of a sticky financial mess without going to foreclosure which can seriously damage your credit.

You may be thinking why would a mortgage holder want to allow a short sale? There are a number of reasons, most notably the cost involved for the lender going through a foreclosure proceeding. This avenue can save the lender money that they would otherwise lose.

All lenders are considering the short sale route, even if they have been unresponsive or unreasonable about a refinance or loan modification.

If you are considering the short sale process please feel free to contact me or call 877-852-6636 with any questions. I specialize in this unique type of sale and have expert knowledge of all short sale procedures!

Photo from Foreclosure News Website

Are you on the brink of losing your home to foreclosure? Well, if that is the case, the 3^rd Annual DC Housing Expo and Foreclosure Clinic was held on Saturday, June 4, 2011 at the Washington Convention Center in Washington, DC.  This event was a great opportunity for those who are facing foreclosure on their home and ways to prevent losing your home.

There were several workshops topics which included the following:

* Homeownership 101: The Basics of Searching, Borrowing, and Owning
* Giving Seniors the Housing Resources they need
* Facing Foreclosure: What You Should Know
* Teens and Cash: Getting the Most From Your Dollars
* Life after Foreclosure: How to Get Back on Track
* Take Control of Your Finances and Your Life
* Tenants and Foreclosure: Know Your Rights
* Neighborhood Stabilization Program: Community Visioning
* How to Do Minor Home Repairs Yourself
* Home Rehabilitation Programs and How To’s

With so many workshops, the workshop that truly grabbed my interest was “Facing Foreclosure: What You Should Know”. At this workshop, there were four panelists that individually address steps to take and free resources available to homeowners facing foreclosure.

The first panelist was from Freddie Mac. The panelist emphasized that everyone has a different situation when it comes down to their home and mortgage situation. Towards the end of the panelist speech, the panelist gave a list of resources pertaining to facts about foreclosures and where to get help from the Freddie Mac website.

Source: http://www.freddiemac.com
http://www.homeloanlearningcenter.com/YourFinances/ForeclosurePreventionResourceCenter.htm

Call: 1-800-FREDDIE option 2

The second panelist spoke about Neighborhood Works and gave ten tips on how to avoid foreclosure. The panelist pointed out that there are housing counselors free of charge that can assess and assist you in your housing needs. To do so, contact http://www.findaforeclosurecounselor.org to locate the housing counselor for your state.  The panelist also mentioned three warning signs or scams that refers to loan modifications. The following were:

* If anyone ask for a fee in advance
* Promises you that they can stop a foreclosure or modify a loan
* Tell you to stop paying for your mortgage company and pay them instead.

Source: http://www.loanscamalert.org
Source: http://www.nw.org/foreclosuresolutions

The third panelist was from the Department of Treasury and spoke heavily about the Make Home Affordable Program.  The panelist encourage when going through the process of a foreclosure, make sure you arm yourself with information, have your mortgage documents ready, and always ask the “why” question.
Source: http://www.makinghomeaffordable.gov

The fourth panelist was brief in which the topic was HomeSaver Program. The HomeSaver Program is for those who are District of Columbia homeowners, unemployed, and need help with their mortgage. The panelist gave us a fact sheet about the HomeSaver Program and the criteria of this program for DC homeowners facing foreclosure.
Source: http://www.homesaverdc.org

The expo was a great opportunity to help the DC metropolitan homeowners who are facing foreclosure to get assistance before it is too late but also offered information for those who seeking to purchase a home as well.

On December 17, 2010, I wrote about mortgage rates being at 5%. This time, I wanted to give an update on the current mortgage rates for this week. According to Freddie Mac website, the current mortgage rate is 4.71%. I question if this a good mortgage rate for a potential homeowner. Looking at the week of December 17, 2010 and the week of January 13, 2011; it shows a difference of .29.

Let’s take a look at the following scenario that was posted on December 17, 2010……

If a potential homeowner was interested in buying a condo in Alexandria, VA that has a one bedroom and one bath that is priced at $400,000, has a 30 year fixed rate, and instead of the mortgage rate being 5%; it will be 4.71%. The amount of the mortgage payment will be around $2076.00 monthly. Now if the interest rate was at 4.5%, the mortgage payment would be 2026.74. The difference of course in mortgage payments would be a 50 dollar difference. Again, these calculations are solely based on the price of the home, the fixed rate years, and the mortgage interest rate as other factors come into play for the potential homeowner. These additional calculations could include the appraised value of the home, yearly property taxes, and property tax insurance that increase the monthly mortgage payment.

Without a doubt, it is always with great consideration to shop for the best deals online for mortgage rates based upon the location in which you live. With this in mind, what are you thoughts about the mortgage rates being 4.71% vs 5%?

If you are considering purchasing a home, please contact a CondoDomain agent to get even more information!

Let’s take a look at an excellent example of putting down 20% as a down payment. A potential homebuyer finds a two bedroom one bath home in Washington, DC that cost $375,000. If 20% is put down, then that would be $75,000. Say on the other hand, you put down 15% as a down payment on the same house that cost $375,000; that would be $56,250. This would mean that private mortgage insurance, an insurance that is added on the homebuyer’s mortgage payment, would be included.

There are other factors that come into play with a down payment. These factors can include closing costs and having enough money for emergencies just in case home repairs are needed. Therefore, it is a great idea to shop around for the best deals for interest rates as well as the home that you like to purchase.  If you are interested in living in the DC area, contact a CondoDomain DC agent to get even more information!

-What does the mortgage rate mean for the potential homebuyer?

-Should the potential homebuyer purchase a home now or should they wait until the rate goes down?

-What has caused the mortgage rate to rise to 5%?

Even though these are great questions to consider, let’s say the potential homebuyer is interested in buying a condo in Alexandria, VA that has a one bedroom and one bath that is price at 400K with a 30 year fixed rate at 5% interest rate. The payment of course according to Bankrate.com mortgage calculator would be $2147.29. Now if the interest rate was at 4.5%, the mortgage payment would be 2026.74. That makes a difference of $120.55 in mortgage payments. These calculations of course are based on the price, the fixed rate, and the interest rate.

Condo Price in Alexandria VA

Looking at the example and the data above, the mortgage rates can have an effect on a potential homebuyer in three ways which are:

1. The higher the mortgage rate, the lower the amount a homebuyer can pay for a home loan.
2. The higher mortgage rates raise the monthly payments.

Having a good credit score. Therefore, it is with great consideration to shop around and research the best deals for mortgage rates. What are your thoughts about the mortgage rates rising?

And if you’re interested in buying a VA home, contact one of our agents for details on our fantastic deals!

“The San Francisco Chronicle just ran an article in which a number of experts were surveyed for their predictions, which ranged from 50 to 200 basis points, putting the resulting rate between 5.5 and 7 percent,” Smith wrote.  ”At today’s 4.875 percent, a $200,000 mortgage costs $1,058 per month. If rates rose to 5.5 percent, that monthly expense would rise $78 to $1,136. If rates rose all the way to 7 percent, the monthly cost would go up $273 to $1,331.”

The question is an interesting one, and the answer will only truly be known over time.  So, as Smith asks in his piece, I ask the same of you DCCondoLoft nation:

How high do you think mortgage rates will actually climb to?

And when do you believe they will return to a somewhat normal state?

Let us know, we want to hear from YOU!

And remember to sign up to receive tons of DC real estate information updates on CondoDomain DC.

“A quarterly Freddie Mac report on refinancing activity showed fixed-rate loans were overwhelmingly preferred by borrowers, with 95 percent of all refinancings being a fixed-rate product,” Clabaugh wrote. “Freddie Mac said a fixed-rate loan was the preferred choice, regardless of whether the borrower’s original loan was an ARM or fixed.”

Clabaugh continued on writing, “While a 30-year fixed-rate mortgage was the most popular refinance choice in the fourth quarter, 15-year fixed-rate mortgages also attracted more borrowers, as more homeowners chose shorter terms to pay down their mortgage balance faster.”

How do you feel about fixed-rate loans vs. adjustable-rate loans?  And do you feel that these stats are an aberration or will now become status quo?

Make your decision, let us know, and then search through all of our DC properties, like this one at Yale Steam Laundry!