Real Estate in Western Massachusetts

Home Sales To Rise Gradually Into 2008

2007-01-11T09:14:00.000-08:00

Home Sales To Rise Gradually Into 2008
After bottoming in the fourth quarter of 2006, existing-home sales are forecast to gradually rise through 2007 and into 2008, while new-home sales should turn around by summer, according to the latest forecast by the NATIONAL ASSOCIATION OF REALTORS®.
Annual totals for existing-home sales in 2007 will be comparable to 2006, says David Lereah, NAR’s chief economist.
“Keep in mind that we were still in boom conditions during the first quarter of 2006 with a high sales volume and double-digit price appreciation,” Lereah said. “We are starting 2007 from a relatively low point, so even with a gradual improvement in sales it’ll be pretty much of a wash in terms of annual totals.”
The good news, he says, is that a steady improvement in sales will support price appreciation moving forward.
2006 Sales Third-Highest on Record
Existing-home sales for 2006 are expected to come in at 6.50 million, the third highest on record, with a total of 6.42 million seen in 2007. New-home sales in 2006 should tally 1.06 million, the fourth highest on record, with 957,000 projected this year.
Total housing starts for 2006 are likely to be 1.81 million units, with 1.51 million forecast in 2007, which would be the lowest level in a decade. Builders are pulling back on new construction to support prices of remaining inventory.
The 30-year fixed-rate mortgage will probably rise to 6.7 percent by the fourth quarter of 2007. Last week, Freddie Mac reported the 30-year fixed rate at 6.18 percent, far below earlier consensus forecasts.
“The current interest rate environment and housing inventory levels present a window of opportunity for potential buyers,” Lereah says.
The national median existing-home price for all of 2006 is expected to rise 1.1 percent to $222,100, and then gain 1.5 percent this year to $225,300. The median new-home price, after rising only 0.3 percent to $241,600 in 2006, is projected to grow 3.0 percent in 2007 to $248,900.
Soft Landing for Housing
“With all the wild projections by academics, Wall Street analysts, and others in the media, it appears that much of the housing sector is experiencing a soft landing,” Lereah says. “Despite the doomsayers, household wealth will not evaporate and the economy will not go into a recession. If you’re in it for the long haul, housing is a sound investment.”
The unemployment rate is likely to average 4.8 percent in 2007, following a rate of 4.6 percent in 2006. Inflation, as measured by the Consumer Price Index, is expected to be 2.2 percent 2007, down from 3.2 percent last year, while growth in the U.S. gross domestic product is seen at 2.5 percent in 2007, compared with 3.3 percent last year.
Inflation-adjusted disposable personal income should grow 3.4 percent this year, following a rise of 2.7 percent in 2006.
— REALTOR® Magazine Online

Study Shows Risky, Least Risky Housing Markets November 8, 2006

2006-11-09T05:55:00.000-08:00

Study Shows Risky, Least Risky Housing Markets November 8, 2006
Some California homeowners may see home prices decline over the next couple of years, according to PMI Mortgage Insurance Co., a Walnut Creek, Calif.–based private mortgage insurer.
PMI produces a quarterly U.S. Market Risk Index based on local economic conditions, income, and interest rates. The statistical model estimates the probability of falling home prices over the next two years.
Eight of the 10 riskiest home markets are in California, according to the analysis. They are:
1. San Diego-Carlsbad-San Marcos, Calif., 60.3 percent
2. Sacramento-Arden-Arcade-Roseville, Calif., 60.1 percent
3. Oakland-Fremont-Hayward, Calif., 60 percent
4. Santa Ana-Anaheim-Irvine, Calif., 59.9 percent
5. Nassau-Suffolk, N.Y., 59.8 percent
6. Riverside-San Bernardino-Ontario, Calif., 59.6 percent
7. Boston-Quincy, Mass., 59.6 percent
8. Providence-New Bedford-Fall River, R.I.-Mass., 59 percent
9. Los Angeles-Long Beach-Glendale, Calif., 59 percent
10. San Jose-Sunnyvale-Santa Clara, Calif., 58.9 percent
The report picks markets in Texas and the Midwest as the 10 least at risk of price declines, with Pittsburgh as the least risky. The least risky markets are:
1. Houston-Sugar Land-Baytown, Texas, 8.8 percent
2. Nashville-Davidson-Murfreesboro, Tenn., 8.6 percent
3. San Antonio, Texas, 7.8 percent
4. Fort Worth-Arlington, Texas (MSAD), 7.6 percent
5. Columbus, Ohio, 7.4 percent
6. Cleveland-Elyria-Mentor, Ohio, 7.4 percent
7. Cincinnati-Middletown, Ohio-Ky.-Ind., 7.2 percent
8. Memphis, Tenn.-Miss.-Ark., 6.8 percent
9. Indianapolis-Carmel, Ind., 6.3 percent
10. Pittsburgh, 6.1 percent
— REALTORS® Magazine Online

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For Sale By Owner, How to Sell your Home

2006-10-30T18:48:00.000-08:00

Step One: The first step is selling your home is determining why you are selling your home. Are you selling your home for profit, because of job relocation, moving to a new neighborhood in the same area, illness or death of a family member, or change of scenery?
Suppose you are relocating due to a job advancement or placement. However, you are not scheduled to move for another six months. A well maintained and well marketed home, once listed, can sell within the first 30 days. You could be living in a motel for months prior to your relocation. If you are selling your home for a profit then you will need to know your homes' value. You will still need to consider your next home. Will you be paying a higher mortgage? How much of your profit do you put down on the next home? Determining the why is very important in meeting your overall objective. Plan and decided on your next home, if necessary, You should get Pre-Approved for a mortgage on your next home, if you plan to have mortgage. Talk to your mortgage lender about your plans to sell and purchase a new home. Your lender will be able to tell you how much home you will be able to purchase upon the successful sell of your current residence
Step Two: Now that you know or have made plans on your next home, it's time to focus on the sell of your current home. The big question you must be able to answer here is "what is my home worth?" You will need to do some serious research to determine what your home is worth and how much you want to sell it for. There are several different venues you could use to make your decision on price. One method is having a Comparative Market Analysis (CMA) done by a real estate broker. The CMA is usually free. However, you can expect the realtor to try to sell you on the idea of having him or her to sell your home for you. Also the CMA is not an actual appraised value of your home. The CMA basically tells you what homes in your area similar to yours is currently selling for.
The most reliable method and the one I highly recommend is to have a professional appraisal done by an unbiased appraiser. The average appraisal cost is about $350 to $400 dollars, depending on the square footage of your home and the number of acres. This may seem like costly but the appraiser provides you with more than just an average price for your home. They usually tell you about some of the imperfections, or issues that need to be addressed. Most appraisers will provide you with tips, tell you what buyers might be looking for when buying a home, and recommend what to fix, upgrade or leave alone.
Step Three: Prepare your home to Market. Curb Appeal is the First and Most Important Factor in Selling your Home. It is a known and proven fact among realtors across the nation that the home owner who spends more time on improving the face of their home sells first. This preparation should start weeks prior to placing your house on the market. When you go to purchase a car or anything, you expect it to be appealing to the eye. Your home should be the same way. The most important aspect of selling your home is Curb Appeal. I have a complete article on Curb Appeal- Click Here.
Step Four: Make repairs and makeovers to your home. If you know that your gutters need adjusting, some of your windows stick, old wallpaper need to be replace or any minor repairs, make it happen. Don't try to shortcut. Today buyers are well informed and usually have been to many other home prior to coming to yours. Also you don't want to get caught up in a law suit if you fail to mention or hide an imperfection in your home. Minor repairs really doesn't have to cost much. Before you make a make a major renovation in your home ask your appraiser if it would be worth it.
Step Five: Fine and use every medium available to sell your home. The more advertisement you have out on selling your home the better the odds are that you will sell your home fast. Many buyers are viewing homes on the Internet. There are many "For Sale by Owner" websites in the Internet. A lot of them offer free service and a lot of them charge to place your home on their site. Many of the sites are ran by national companies that advertise thousands of homes. The chances of prospective buyers finding your home among thousands are not good. Choose a website that is locally focus. When a prospective buyer go to a search engine to look for a home they use key words such as "real estate in Western Massachusetts" or "home for sale in Springfield." Most buyers do not just look for homes that are for sale by owners, they just want to find the best home in a specific area.
Place your home in the local newspaper classifieds. If you use the newspaper also inform buyers that they can view photos of the home at whatever website you choose to advertise. Otain more information on selling your home at www.mawestrealty.com.

Mortgage Rates Drop Slightly Last Week

2006-09-19T07:30:00.000-07:00

Daily Real Estate News September 15, 2006 Mortgage Rates Drop Slightly Last Week The national average rate on a 30-year, fixed-rate mortgage was 6.43 percent last week, down slightly from 6.47 percent the week before but up from 5.74 percent a year ago, according to Freddie Mac.The average for the 15-year, fixed-rate mortgage was 6.11 percent, down from the previous week’s 6.16 percent but again higher than the 5.32 percent average for the same period last year.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.1 percent, down from 6.14 percent. A year ago, the five-year ARM averaged 5.26 percent.
The average rate on one-year ARMs was 5.6 percent last week, compared with 5.63 percent the previous week and 4.46 percent a year ago.
“Although 30-year mortgage rates are about three-fourths of a percentage point higher than they were last year, it's good to keep in mind that rates have dropped from the high of 6.8 percent reached just eight weeks ago,” says Frank Nothaft, Freddie Mac vice president and chief economist. “And with short-term interest rate increases seemingly on hold, for a while at least, interest rates overall should not experience any big shifts in either direction.”
“The risk to our forecast of relatively stable mortgage rates is that inflation will unexpectedly heat up, causing bond markets to raise their expectations that the Fed will intervene by raising short-term rates,” Nothaft adds. “In that case, mortgage rates will again start to rise.”
— REALTOR® Magazine Online. More information at www.mawestrealty.com

Home Sales Expected to Stabilize

2006-07-11T12:49:00.000-07:00

NAR: Home Sales Expected to Stabilize(July 11, 2006) -- Home sales are projected to ease modestly but should stay within a relatively narrow range during the balance of the year, according to the NATIONAL ASSOCIATION OF REALTORS®.“The major housing indicators have been moving up and down within a reasonable range, which means the market should even-out just below present levels,” says David Lereah, NAR’s chief economist. “At the same time, housing inventory levels are balanced in much of the country, so overall price appreciation will be at a normal rate. We should see home sales rise and fall month to month, but don’t look for any big shifts one way or the other.”Existing-home sales are expected to decline 6.7 percent to 6.6 million in 2006 from 7.08 million last year. That would still be the third-highest level on record. New-home sales should fall 12.8 percent this year to 1.12 million from 1.28 million in 2005. Housing starts are forecast to decline 6.8 percent to 1.93 million this year from 2.07 million in 2005.The 30-year fixed-rate mortgage is likely to reach 7 percent by the end of the year. “The uptick in interest rates has been slowing home sales,” Lereah says. “We remain concerned about the potential impact of higher interest rates in some of the more expensive areas of the country.”NAR President Thomas M. Stevens from Vienna, Va., says consumers who have been on the sidelines should feel more confident about the market normalization. “When it comes to big ticket purchases, buyers are more comfortable in a stabilizing environment,” says Stevens, senior vice president of NRT Inc. “At the same time, home sellers in most areas understand that the period of abnormal price growth is over, and they have become more realistic about the current market. This is helping to ease the pressure on home prices in some areas.”The national median existing-home price for all housing types is expected to rise 5.3 percent to $231,300 in 2006. With more construction in lower cost regions as well as price incentives that are helping to clear unsold inventory, the median new-home price should increase 1 percent this year to $243,300.The unemployment rate is projected to average 4.7 percent in 2006, while inflation, as measured by the Consumer Price Index, is forecast at 3.4 percent. Growth in the U.S. gross domestic product is expected to be 3.4 percent this year, and inflation-adjusted disposable personal income is likely to grow 3.1 percent.— NAR
More info available at www.mawestrealty.com.

Market Trends in Greater Springfield and Western Massachusetts

2006-05-27T08:58:00.000-07:00

The housing market in the Greater Springfield, Massachusetts area has been very active. Unlike the previous year where the market reached record prices. The prices has stabilized, and in some cases have dropped. The inventory of houses on the market is very high, which gives buyers more options. Buyer's don't feel pressured to buy or worry so much about competition. This is good for buyers, but they are feeling pressure to make a move soon because of the rise of current mortgage rates . According to the National Association of Realtor On-line Magazine. "30-Year Mortgages Hit Highest Rates Since '02(May 26, 2006)."
"Long-term mortgage rates continued their upward trend this week, reaching the highest point since June 2002. According to Freddie Mac, interest on 30-year loans bumped up to 6.62 percent from 6.60 percent; while 15-year mortgage rates rose to 6.23 percent from 6.20 percent. Adjustable-rate mortgages bucked the trend, with the one-year ARM dipping to 5.61 percent from 5.62 percent last week and five-year ARMs dropping to 6.21 percent from 6.23 percent over the same period. All of the rates are up noticeably from a year ago, when the averages held at 5.65 percent for 30-year mortgages, 5.21 percent for 15-year loans, 4.21 percent for one-year ARMs, and 5.07 percent for five-year ARMs."
Source: Contra Costa Times, Martin Crutsinger (05/26/06)
Most realtors are advising their sellers to drop the listing price by 3 to 5 percent to compete with the market trends. Yes, the market has turned a little in favor of the buyers. However, don't be fooled the sellers still have the ball in their court, thanks to the rise of interest rates. Below are some numbers in the Greater Springfield Massachusetts area; Single Family homes sold or under agreement in the last two months in Agawam, Longmeadow, Chicopee, East Longmeadow, and Springfield as of May 26, 2006
Agawam: Single Family Listings: 85 Average List Price: $243,502 Average Sale Price: $238,185 Average Market Time: 77.45
Chicopee: Single Family Listings: 101 Average List Price: $186,966 Average Sale Price: $185,405 Average Market Time: 68.42
East Longmeadow: Single Family Listings: 44 Average List Price: $329,839 Average Sale Price: $320,702 Average Market Time: 120.59
Longmeadow: Single Family Listings: 59 Average List Price: $379,549 Average Sale Price: $334,484 Average Market Time: 100.54
Single Family Listings: 408 Average List Price: $157,927 Average Sale Price: $156,144 Average Market Time: 87.73

The totals and averages of the above cities combined out of 500 listings:
Single Family Listings: 500 Average List Price: $204,266 Average Sale Price: $199,077 Average Market Time: 86.91

More infomation at www.mawestrealty.com

30-Year Mortgages Hit Highest Rates Since '02

2006-05-26T17:23:00.000-07:00

30-Year Mortgages Hit Highest Rates Since '02(May 26, 2006)
Long-term mortgage rates continued their upward trend this week, reaching the highest point since June 2002. According to Freddie Mac, interest on 30-year loans bumped up to 6.62 percent from 6.60 percent; while 15-year mortgage rates rose to 6.23 percent from 6.20 percent. Adjustable-rate mortgages bucked the trend, with the one-year ARM dipping to 5.61 percent from 5.62 percent last week and five-year ARMs dropping to 6.21 percent from 6.23 percent over the same period. All of the rates are up noticeably from a year ago, when the averages held at 5.65 percent for 30-year mortgages, 5.21 percent for 15-year loans, 4.21 percent for one-year ARMs, and 5.07 percent for five-year ARMs. Get More info at www.mawestrealty.com

Source: Contra Costa Times, Martin Crutsinger (05/26/06)

Pre-approval for Mortgage

2006-05-16T09:04:00.000-07:00

Advantages to Pre-approval
Pre-approval will determine the maximum you can spend on a house before you shop, so you know what price range to target. Many shoppers aim too high, bidding on a home that they later learn is beyond their means because of unforeseen debts or other financial factors.
A pre-approved loan is the equivalent of a cash offer. Sellers are more likely to accept such a secure bid over other, simultaneous bids for which financing is still pending -- even if those bids are higher.
The contract you sign upon submission of your bid allows a finite period in which to find a mortgage -- typically 30 days or less. If you fail to secure financing within that period, the seller may drop your bid. In the meantime, another buyer may offer the seller a higher bid -- or even a lower one -- and bump you out of the picture. Some contracts allow the seller to find a mortgage for you if you miss the deadline, possibly with no consideration of the terms and how they affect you.
Pre-approved buyers can rush the closing if the seller is in a hurry to deal. Pre-approval gives buyers bargaining power. Find out more about pre-approval at http://www.mawestrealty.com/mortgage_pre_approval.htm.

Pending Home Sales Ease

2006-05-09T09:15:00.000-07:00

(May 2, 2006) -- Pending home sales have slowed modestly as interest rates continue to rise, according to the NATIONAL ASSOCIATION OF REALTORS®.
The Pending Home Sales Index, based on contracts signed in March, eased 1.2 percent to a level of 116.2 from an index of 117.6 in February, and is 6 percent below March 2005.
The index is derived from pending sales of existing homes. A sale is listed as pending when the contract has been signed and the transaction has not closed; pending sales typically are finalized within a month or two of signing.
An index of 100 is equal to the average level of contract activity during 2001, the first year to be examined, and was the first of five consecutive record years for existing-home sales.
David Lereah, NAR’s chief economist, says the market has been encouraged by rising home sales over the last two months.
"Home sales rebounded from the slide that started last fall, but the pending sales data is showing a dampening effect from rising mortgage interest rates that have been trending up since January," he says. "This means a modest slowing can be expected in the sales pace in the months ahead, although the market will hold at historically strong levels."
Regionally, the index in the Northeast rose 5.2 percent in March to 112.9 but was 1.1 percent below March 2005. In the West, the index increased 0.7 percent in March to 111 but was 13.3 percent below a year ago. The index in the South eased 1.2 percent to 127.9 in March and was 1.6 percent lower than March 2005. The index in the Midwest fell 7.4 percent to 106.1 in March and was 9.3 percent below a year ago. More real estate news at www.mawestrealty.com

— NAR

Steps in How to Sell Your Home.

2006-04-17T10:06:00.000-07:00

Step One: The first step is selling your home is determining why you are selling your home. Are you selling your home for profit, because of job relocation, moving to a new neighborhood in the same area, illness or death of a family member, or change of scenery?
Suppose you are relocating due to a job advancement or placement. However, you are not scheduled to move for another six months. A well maintained and well marketed home, once listed, can sell within the first 30 days. You could be living in a motel for months prior to your relocation. If you are selling your home for a profit then you will need a complete analysis of your homes value. You will still need to consider your next home. Will you be paying a higher mortgage? How much of your profit do you put down on the next home?
Determining the why is very important in meeting your overall objective.

Step Two: You should get Pre-Approved for a mortgage on your next home, if you plan to have mortgage. Talk to your mortgage lender about your plans to sell and purchase a new home. Your lender will be able to tell you how much home you will be able to purchase upon the successful sell of your current residence.

Step Three: Once you have your Pre-Approval in hand you should contact a Realtor. I know that some people are apprehensive about paying fees (you may find the fees are not as high as you think). However, time is money and although you might not be in the real estate business, you should understand that selling a home should be treated as a business. Your realtor will assist you in obtaining a lawyer, pay for the marketing of your home, show your home to prospective buyers and prepare all the documentation.
Selling a home on your own is very risky. There are many new regulations governing real estate and if you are not careful you may find yourself on the end of a law suit. For example in the state of Massachusetts, disclosures have to be made to the buyer in reference to any existing lead paint in a home, especially homes built to prior to 1978. Unfortunately we live in a time where there are many people waiting for an opportunity to sue someone. Why take the risk? An agent works with lawyers and lenders has all the resources to help you.

Step Four: Get a Comparative Market Analysis (CMA) of your homes value. Your realtor can do this for you. The process involves evaluating your property and comparing it with homes like yours that have recently been sold or are pending. A comparative market analysis is not an appraisal. If you like you can have an appraisal done, however this can cost you up to $500. The results of the CMA normally are very close to the appraisal. The CMA shows you the similarities of the homes sold compared to yours. It will also give you an estimated of costs and net proceeds after the sale. You will be able to determine your asking price based on the CMA and your needs. A home that is overpriced will not sell. As an experience Realtor I have seen homes remain on the market for years because of overpricing. It is very important that you work with an agent that you trust (A Business Relationship Trust). A relative or friend is not always the ideal person to sell your home. You must be able to communicate your desires without restrictions.

Step Five: Prepare your home to Market. When you go to purchase a car or anything, you expect it to be appealing to the eye. Your home should be the same way. The most important aspect of selling your home is Curb Appeal. I have a complete article on Curb Appeal- Click Here at www.mawestrealty.com You will also want to make all the necessary repairs in your home that you know that have to be done. Your agent can also advise on a few things.

Step Six: Showing Your Home. Your agent will ask you not to be present during showing if at all possible. The reason for this is that buyers are very discriminative and nervous around owners; they don't feel comfortable inspecting the house when you are there. They feel they may intrude in your personal space. Make plans to have Open Houses. You should not be present during open houses, therefore make plans with your family for a Sunday outing (most open houses are on Sundays).

Step Seven: Sign Accepted Offer and Purchase and Sell Agreement. Your agent will prepare the contracts for you once you accepted an offer. Your agent will work with your lawyer to protect you as the seller.

STEPS 1-6: When Buying Your Home

2006-04-09T13:14:00.000-07:00

Step 1: Defining What You Want
Start by creating a prioritized list of features you want in your next home and the reasons why. Use it as your search guide, but remember that depending on your funding, you will probably need to make some compromises. In addition, talk to your real estate professional about where you want to live. Location is a huge part of any move. Century 21® professionals are trained to help their clients narrow down their choices by sharing market trends and local information.

Step 2: Figuring Out What You Can Afford
Now that you know what you want, it's time to see what you can afford.
When you're ready to move to the next step, you can get pre-approved for a mortgage. This process can often be performed in under an hour and it accomplishes two important goals. First, it will tell you how much house you can afford and what your monthly payments would be. Second, it tells the seller that you can afford to buy their home.
By definition, a pre-approved buyer has an approved mortgage subject to an appraisal of the property. Many times a buyer can use this pre-approved status as leverage during the negotiation process.

Step 3: Shopping For Homes
Once you know what community you'd like to live in and have an idea of how much house you can afford, its time to start checking out actual properties. Beginning this search online can help save you time since it can help you target homes that meet your search criteria. Our home notifier can even email you when properties come on the market that meet your search criteria.
Next, begin visiting homes in person. Ask your local real estate professional to arrange visits and attend open houses that are in your target area and price range. When comparing homes, make sure to look at all aspects of the property. Is the property tax approximately the same? Are both the houses renovated? Do they both have the same amount of bedrooms and bathrooms? Are both houses located on the same or similar streets? Does either house have any encumbrances?
Remember to keep an open mind when you are looking at homes. Use a virtual home planner to help you imagine what the house could become with you as the owner.

Step 4: Making An Offer
Once you find the home you want, you need to make an offer for the house. Typically this is a very difficult and trying time since both parties have totally different goals. In most cases it is better to have a third party, such as a real estate professional, negotiate the offer. If you have any personal interaction with the homeowner, don't give out any information about your move, your current housing status, financial status or your feelings about their property - positive or negative. This could hurt you in future negotiations.
This might also be a good time to consider purchasing a home protection plan. These insurance policies can be purchased by the buyer or seller and help protect against unexpected costs or home repairs during the listing period or in the initial years after a home has been purchased.

Step 5: Inspection & Insurance
After your offer is accepted you will need to set up, coordinate and interpret various inspections, including insect, radon, building quality, oil tank, title, etc. You will also need to arrange for homeowners insurance and finalize the mortgageThis is a major step in the buying process and there are many potential problems that can be discovered during this period. These include a leaky roof, radon gas, termite damage, a foundation problem, and wall cracks, to name a few. These problems happen all the time. The difference between closing on your dream home and starting the process all over again is what occurs during the negotiations between you and the seller.

Step 6: The Final Closing
Before you arrive at the closing, make sure all the necessary paper work and deposits have been completed. If the mortgage, title work, homeowners insurance and other items necessary under local and state laws are not completed and brought to the closing table, the closing may not happen on time. And, depending on what the contract says, this could result in further action including financial penalties and even the loss of your rights to the home.
Once you close, it's official - you own the house! But there might be a few things you want to do before you lay out the welcome mat. These include arranging for an alarm system, turning on the electricity, subscribing to the local paper, cleaning or replacing the carpet, arranging for lawn services, etc. This could also be a good time to make some needed renovations.

Learn more about otaining Pre-approval and financing your home at www.mawestrealty.com.

Buy with Low Down and No Closing Cost

2006-03-12T10:14:00.000-08:00

Buy a Home with Low Down and No Closing Cost
Are dreaming of buying a home, but you feel that you might not have enough saved for the down payment or closing cost?
Many banks have required that home buyers be able to make a down payment of at least 20% of a home's purchase price to get a home loan or mortgage.
Also some banks require the buyer to pay Points, Pre-Pays and Closing Cost. These cost can total as much as 6% of the purchase price of the home. Closing costs include the loan origination fee (if not already paid), points, prepaid homeowner's insurance, appraisal fee, lawyer's fee, recording fee, title search and insurance, tax adjustments, mortgage insurance (if you are putting less than 20% down) and other expenses.
Home ownership remains one of the highest goals for many people because of its many benefits. A home is still a valued investment which can have many financial advantages and tax benefits. The amount of interest you pay on a home loan and the real estate taxes you pay on your home are among the few major federal tax deductions.
There are many mortgage lenders that will grant mortgages to qualifying home buyers with low or nothing down. To learn more or to get Pre-Approved for a mortgage. Learn more at www.mawestrealty.com

Buy Home with 3% or Less Down

2006-02-25T09:32:00.000-08:00

If you're dreaming of buying a home, congratulations. You're in good company! Almost two-thirds of the nation's households own their own home.
This article describes how families can get into their own homes with little cash up front. It explains mortgage insurance and how it works, and looks at the two options -- private mortgage insurance and government mortgage insurance.
Homeownership remains one of the highest goals for many people because of its many benefits. Along with owning your own home comes a sense of security and belonging that cannot be found elsewhere. For many, homeownership represents personal and financial success.
There is much personal satisfaction in living in a home that you own. A home is still a valued investment which can have many financial advantages and tax benefits. The amount of interest you pay on a home loan and the real estate taxes you pay on your home are among the few major federal tax deductions. Owning a home is the primary way most people build wealth.
Homeownership is also good for our communities, because families who own their homes are more involved in their local communities and participate in local events.
The rewards of homeownership:
Personal satisfaction
Sense of community
Tax savings
Stability for you and your family
Investment in the future
Still, for many Americans, owning a home continues to remain just slightly out of reach. For more and more families, saving the money for a down payment is the biggest obstacle to homeownership. Many people mistakenly believe that you have to come up with a down payment equal to 20 percent of the price of a home.
Traditionally, lenders have required that home buyers be able to make a down payment of at least 20% of a home's purchase price to get a home loan or mortgage. However, mortgage lenders will grant home loans to qualifying home buyers with a down payment of as little as 3 to 5 percent of the purchase price, if the mortgage is insured. In fact, home loans with down payments of less than 20% are increasingly popular. They are called "low down payment mortgages."
This is good news for the millions of home buyers who are finding it difficult to save a large down payment, especially for their first house.
Simply put, mortgage insurance protects the mortgage lender against financial loss if a homeowner stops making mortgage payments. Lenders usually require insurance on low down payment loans for protection in the event that the homeowner fails to make his or her payments. When a homeowner does not make mortgage payments, a default occurs and the home goes into foreclosure. Both the homeowner and the mortgage insurer lose in a foreclosure. The homeowner loses the house and all of the money put into it. The mortgage insurer will then have to pay the lender's claim on the defaulted loan.
For this reason, it is crucial that the family buying the home can really afford it -- not only when they buy , but throughout the time period of the loan.
Although the cost of the mortgage insurance is paid by the home buyer, or borrower, the mortgage insurer works directly with the lender. Mortgage insurance is available to commercial banks, mortgage bankers, and savings & loans, and all of which offer mortgage loans to home buyers. Remember that mortgage insurance is not the same as credit life insurance, also called mortgage life insurance. This type of policy repays an outstanding mortgage balance if the person who took out the insurance policy dies.
The Secondary Market
The lender's decision to use mortgage insurance is driven by the requirements of investors in the mortgage market. Because of the losses that could occur, major investors require mortgage insurance on all loans made with low down payments.
The three primary investors in home loans are Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) and Government National Mortgage Association (Ginne Mae). By purchasing and selling residential mortgages, Fannie Mae and Freddie Mac help keep money available for homes across the country.
Unlike Fannie Mae and Freddie Mac, Ginnie Mae does not actually buy the mortgages. It adds the guarantee of the full faith and credit of the U.S. Government to mortgage securities issued by private lenders.
The Two Choices: Government Insurance and Private Insurance
Now that we have explained how mortgage insurance works and why it is necessary, let's look at the basic kinds of mortgage insurance. Low down payment mortgages can be insured in two ways -- through the government or through the private sector.
Mortgages backed by the government are insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) or the U.S. Department of Agriculture's Rural Housing Services (USDA-RHS).
The minimum effective down payment required by FHA is less than 3 percent. For single-family homes, there is a limit on the loan amount that varies according to geographic area.
EARLY ON IN THE HOME-BUYING PROCESS, IT IS A GOOD IDEA TO MEET WITH SEVERAL LENDERS TO COMPARE THE TYPES OF MORTGAGES THEY OFFER AND SHOP FOR THE BEST PRICE AND TERMS. Although anyone can apply for FHA insurance, the other two government mortgage guarantee programs are much more targeted. The VA program is limited to qualified, eligible veterans and reservists. The USDA Rural Housing Service insures loans for the construction and purchase of homes in rural communities. This program is very specialized, so contact your lender for the details. More at www.mawestrealty.com.

Housing Market in Springfield, Massachusetts

2006-02-22T18:48:00.000-08:00

The following is a snap shop of the current Housing Market in Springfield, Massachusetts. The information is gathered on all active homes for sale in Springfield, Mass according to the National Multiple Listings Service (MLS) as of 02/21/2006. The following data is based on the market in the Springfield Massachusetts.

Market Trends

No. of Home Under $100K-36 Avg Price $79,586 Avg time on Mkt 67.11 Days
No. of Homes Btwn 101k to 120k - 42 Avg Price $112,527 Avg time on Mkt 72.95
No.of Homes Btwn 121 to 150K - 145 Avg Price $138,509 Avg time on Mkt 64.48
No.of Homes Btwn 151 to 200K - 189 Avg Price $173,802 Avg time on Mkt 68.31
No.of Homes Btwn 201 to 250K - 46 Avg Price $225,225 Avg time on Mkt 85.54
No. of Home Btwn 251 to 300K - 26 Avg Price $279,135 Avg time on Mkt 157.31
No.of Homes Btwn 301 to 400K - 9 Avg Price $339,956 Avg time on Mkt 62.22
No.of Homes Btwn 401 to 710K - 4 Avg Price $518,750 Avg time on Mkt 162.25
No.of Homes Btwn 711k to 1mil 1 Avg Price $949,900 Avg time on Mkt 246

Springfield, Mass Totals: 498 Avg Price $169,320 Avg Days on Mkt74.25

The Above Stats are for the following area:
Totals:

East Forest Park: Single Family Listings: 61 Avg List Price: $191,310 Avg Market Time71.46
East Springfield: Single Family Listings: 43 Avg List Price: $150,935 Avg Market Time: 63.40
Forest Park: Single Family Listings: 59 Avg List Price: $196,519 Avg Market Time: 73.17
Hill McKnight: Single Family Listings: 51 Avg List Price: $141,164 Avg Market Time: 71.16
Indian Orchard: Single Family Listings: 21 Avg List Price: $145,971 Avg Market Time: 72.57
Liberty Heights: Single Family Listings: 21 Avg List Price: $149,095 Avg Market Time:100.14
N Brightwood: Single Family Listings: 0
Pine Pt Bstn Rd: Single Family Listings: 71 Avg List Price: $151,955 Avg Market Time: 88.21
Sixteen Acres: Single Family Listings: 70 Avg List Price: $193,595 Avg Market Time: 68.99
South End Central:Single Family Listings: 12 Avg List Price: $179,508 AvgMarketTime: 83.42

To obtain more information on cities in Western Masssachusetts visit www.mawestrealty.com

VA Home Loans

2006-02-12T10:08:00.000-08:00

VA Home Loans for Vets
More than 27 million veterans and service personnel are eligible for VA financing. Obtaining a VA home loan is easier now than ever before, thanks to today's computer age. These loans are made by a lender, such as a mortgage company, savings and loan or bank. VA's guaranty on the loan protects the lender against loss if the payments are not made, and is intended to encourage lenders to offer veterans loans with more favorable terms.
There are six steps in obtaining a VA Home Loan:
1. Find the property suitable for your needs
2. Go to a lender, and apply for the loan
3. Present your discharge or separation papers relating to latest period of service and/or a Certificate of Eligibility
4. Property is appraised by approved appraiser
5. Estimate of property's reasonable value is determined
6. If application is approved, you get the loan
These loans are often made without any down payment at all. Aside from the veteran's certificate of eligibility and the fact that the appraiser is assigned by VA, the application process is not much different than any other type of mortgage loan. And if the lender is approved for automatic processing and the Lender Appraisal Processing Program (LAPP), as more and more lenders are now, a buyer's loan can be processed and closed by the lender without waiting for VA's approval of the credit application or for VA to review the appraisal. Lenders are also able to use VA recognized automated underwriting systems, such as Loan Prospector and Desktop Underwriter, to facilitate the underwriting process.

WHO IS ELIGIBLE?
Veterans with active duty service, that was not dishonorable, during World War II and later periods are eligible for VA loan benefits. World War II (September 16, 1940 to July 25, 1947), Korean conflict (June 27, 1950 to January 31,1955), and Vietnam era (August 5, 1964 to May]7, 1975) veterans must have at least 90 days' service. Veterans with service only during peacetime periods and active duty military personnel must have had more than 180 days' active service. Veterans of enlisted service which began after September 7, 1980, or officers with service beginning after October 16,1981, must in most cases have served at least 2 years.
Gulf War. Basically, reservists and National Guard members who were activated on or after August 2, 1990, served at least 90 days and were discharged honorably are eligible. VA regional office personnel may assist with eligibility questions. Members of the Selected Reserve, including National Guard, who are not otherwise eligible and who have completed 6 years of service and have been honorably discharged or have completed 6 years of service and are still serving may be eligible. Contact the local VA office to find out what is needed to establish eligibility.

Receive further resources at www.mawestrealty.com

Real Estate Massachusetts

2006-02-02T18:51:00.000-08:00

FIRST TIME HOME BUYERS

Benefits of Home Ownership:

Buying your first home? Not sure of the benefits of being a First Time Home buyers? Are there any real benefits or advantages in Home Ownership?

Renting your home or apartment can have some advantages. Of course you don't have to worry about repairs, scheduled maintenance, grass cutting and if you live in the Northeast or Midwest, you don't have to worry about buying a snow blower. As a renter you can petty much come and go as you please. Or can you? Is there someone telling you when to be available for scheduled maintenance or repairs? Is there someone telling you that you are not allowed more than 4 guest without prior approval from the management office? Do you have to get an OK when you want to have a July 4th barbecue?

The biggest benefit of owning your own home is pride in knowing that you own that land that's beneath your feet. You know that your home ownership is the direct result of years of hard work and financial discipline. And no one, but no one, can tell you when you can have a good old fashion American barbecue and how many guests to invite. Renting, in many cases, cost just as much if not more than paying a mortgage.

The advantages of owning a home far outweighs those of renting. A portion of the mortgage you pay goes to paying off the principle of your loan. Which means you will eventually own the home outright.

Owning a home may be easier than you think. HUD has many programs available in many states to assistance you in obtaining your first home. The IRS has publications available to inform you of the tax advantages of homeownership.
Did you know that most, if not all, the taxes and interest you pay on a home is tax deductible?
Obtain more information at: http://www.mawestrealty.com/1st_time_buyer.htm
http://www.hud.gov/offices/hsg/sfh/buying/buyhm.cfm
http://www.irs.gov/pub/irs-pdf/p530.pdf
http://www.irs.gov/pub/irs-pdf/p936.pdf