Mortgage rates move to another to record low!

Creating a target for those wanting to refinance their homes or purchase, the average 30-year fixed rate mortgage fell to the lowest level since mortgage rates have been tracked.  Can rates even get any lower? Well, you can find out more at MMC’s website. Gosh, it’s like “free” money to borrow.

On Thursday the 3^rd of February, the average 30 year fixed rate mortgage hit 3.87%–down nearly .20% from the week before.  This is under the previous record set at 3.88% 14 days ago.

15 year fixed rate mortgages continue to be appealing at 3.14% which is also a record low for this type of financing option.

The 10-year Treasury note is an indicator of mortgage rates and fell to 1.9% this week.

Low mortgage rates have most certainly contributed to the slight improvement in the housing market.  However, many homeowners remain underwater and unable to refinance into lower rates.  The pipeline of foreclosed upon homes continue to be substantial—placing unfavorable pressure on housing prices.  Also, the lackluster unemployment numbers and minimal wage increases continue to make it difficult for people to qualify for home loans or refinances.  Many are unwilling to place their hard earned money into a home that some fear could lose even more value over the next 3-5 years.

Sales of already built and previously occupied homes were dismal last year even though better than the previous; new home construction was the worst on record.  Low interest rates have had minimal impact on the construction of homes yet builders are hopeful that the record low rates along with consumer confidence may spur higher demand.

What’s your opinion on the housing market for the year of 2012?  Me?  I’m hopeful and have been witnessing the current inventory “flying off of the shelves” which is a great indicator that our local market is in the midst of a rebound.

HUD HOME FOR SALE!

3610 S High Springs,  Nampa

Just like new with no back neighbors (backs to community park and playground), this home contains 2013 square feet,  4 bedrooms, 2 1/2 and both a family and living room!  Built in 2005, this HUD home for sale is in nearly “move-in ready” condition.  All of the guest bedrooms are oversized and the master suite contains an enormous walk-in closet.  Fully fenced with room for RV parking.  Hurry—deals like this won’t be around for long!!

An approximate monthly payment for this HUD owned Nampa home for sale at the asking price of $98,000 while placing 3.5% down (4.5% interest rate—taxes and insurance(s) included) would be at or around $743  monthly—why rent?!?  **qualified 1^st time homebuyers may be eligible for programs which offer $500 down payment options**

**INVESTORS—call me now if you’re sick and tired of  hard earned funds sitting in non-performing stocks or low interest savings accounts.  The time is NOW to invest in real property that will obtain at least $500 per month in rental income (not to mention future pricing appreciation).

The seller of this HUD home for sale may provide a closing cost credit of 3% to be included with the purchase of this home.

Please visit https://trustidaho.com/search/#PropertyID=42664928 to view detailed information and additional photos of this HUD home for sale.

Interested in obtaining information on all HUD owned homes for sale?  I am happy to forward a list of available HUD owned homes within 24 hours upon obtaining your request.  Please call me at 208-869-3469 or send your request to:  [email protected]

Call today for additional information or to view the interior of this or alternate HUD  homes for sale!

Attention Investors!! Rental Vacancy Rates Now Hovering Around 2%

It is still an opportune time to be purchasing investment property.  Rental vacancy rates are at historic lows with the current rental vacancy rate now down to just above 2%   Also, monthly rental rates have increased at least 10% within the last 3 months due to the supply and demand curve shifting to the landlord side.  To add some more icing to the cake, home pricing and interest rates are at all time lows.

Do you have cash in a savings or retirement account which is collecting returns of .35%-1%?  If so, convert your money into a tangible asset (an investment property) and obtain nearly a 10% return on your money (not to mention the future appreciation of your asset).

Questions?  Call me directly to discuss taking advantage of the current investment opportunities!

-Matt, 208-869-3469

**Graph provided by Park Place Property Management

The “Hidden Costs” of Owning a Home

Besides the monthly mortgage payment associated with the purchase of a home, there are typically alternate expenses which a home purchaser should be aware of.  The following list contains information on the most prevalent:

1)       Special Assessments:   Special assessments typically include homeowner’s association dues (HOA) or management fees.   HOA dues can range in price from $5 monthly to $250 monthly with the costs associated with the dues being contingent upon what amenities are provided.  For example, if the community containing the home you are interested in purchasing has a “public” swimming pool then it is highly likely that homeowner’s dues could be as much as $125 monthly.  Alternatively, a community which does not have special amenities yet just “common area” which needs to be maintained may charge a nominal fee of $7 monthly.

2)      Services and utilities not needed when renting:  Some renters may have never paid for services like gas, garbage, water, irrigation and nature first pest control services or extermination due to the landlord covering these particular costs. Moreover renting a house would also require the tenant to pay additional from their pocket for maintaining the backyard regularly. One of the ways the cost of this can be drastically reduced is by getting the trees lopped using Perth Arbor Services tree lopping rather than cutting them by hiring other unprofessionals. However, all utilities and services provided would be extra for the new homeowner.

3)      Private Mortgage Insurance:  If not placing at least 20% down when purchasing, it is highly likely that the new homeowner will need to pay for private mortgage insurance which “protects” the investor if there is a default.  Mortgage insurance can be removed if a) a new appraisal is performed showing that the current loan amount is at 80% of the value, or b) the loan is paid down substantially allowing for the mortgage insurance premium to be waived.

4)      Penalties & Fines:  Owning a home comes with obligations such as maintaining the property in accordance with the codes within the community. Those can be found from Naperville commercial real estate company, among others.  Fines can be assessed by municipalities if the property is not maintained appropriately.

5)      Items not needed when renting yet essential when owning:  This “hidden cost” can vary dependent upon climate and the type of home purchased yet includes landscaping equipment (lawn mower, leaf blower, snow blower, etc) along with alternate appliances such as a washer/dryer, refrigerator, window treatments and light fixtures. And as for decorations there are some great Home DIY projects you can do yourself and save some money. Being informed when purchasing a home is of utmost importance.  Please call me directly at 208-869-3469 if I can answer any questions or if you would like to discuss the hidden costs of owning a home more thoroughly.

HUD HOME FOR SALE!

103 Fern Street  Nampa, ID  83686

Incredible HUD home for sale located within an established area of Nampa—nicely situated near amenities and medical services.  An approximate monthly payment for this HUD owned Nampa home for sale at the asking price would be at or around $300 monthly—why rent?!?  The interior of this HUD home for sale is in very good condition with limited improvements needed.  It is situated on a corner lot, has 2 bedrooms and 1 bathroom on the main level along with a full basement which could provide an additional 2 bedrooms and living area.  Hardwood flooring coved ceilings, storage shed and fully fenced.

**INVESTORS—time to pull your hard earned funds out of non-performing stocks or low interest bank accounts and invest in something REAL that will obtain at least $500 per month in rental income.

The seller of this HUD home for sale will  provide a closing cost credit of 3% to be included with the purchase of this home.

Please visit https://trustidaho.com/search/#PropertyID=42000685 to view detailed information and additional photos of this HUD home for sale.

Interested in obtaining information on all HUD owned homes for sale?  I am happy to  forward a list of available HUD homes within 24 hours upon obtaining your request.  Please call me at 208-869-3469 or send your request to:  [email protected]