Delicious Real Estate

Sure, Mortgage Rates Are Lower, But Mandatory Fees Are Not

January 7th, 2009 Categories: Uncategorized

Mortgage rates are down but mortgage fees are upWith respect to mortgage rates, you can’t always believe what you read in the papers.  Or what you see.


A terrific example is the chart at right.


Published by Freddie Mac, it shows the 30-year fixed mortgage’s “going rate” as reported by the nation’s mortgage lenders. On December 30, 2008, that rate was 5.1 percent.


But 5.1 percent is only half of the relevant information.  There’s a mandated fee schedule that accompanies the Freddie Mac-reported rate survey.


Currently, the published fee required to get a 5.1 percent mortgage rates is 0.7% of the borrowed amount, or $700 per $100,000 borrowed.  This fee is more commonly known as “points” and versus last year, it’s nearly doubled from 0.4 points.


So, yes, conforming mortgage rates are low and they have fallen near all-time lows but there’s more to the story than just the interest rate — there are the fees that go with them, too.


Mortgage rates and loan fees often move in opposite directions so to get lower rates, consider paying additional points.  Conversely, to face fewer fees, accept a higher rate.  It’s a trade-off and your loan officer can help you best understand the choices.


(Image courtesy: The Wall Street Journal)

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Housing Predictions For 2009? Keep ‘Em To Yourself.

January 6th, 2009 Categories: Uncategorized

You can't predict the future of housing or mortgage ratesThe New Year is not yet one week old but that’s not stopping market “experts” from predicting what’s in store for 2009.


The calls on housing and mortgage rates run the gamut:



Put it all together and it’s clear that the experts have no better idea about the future than you or I.  Their guesses are educated ones, but they’re guesses nonetheless.


A terrific example of how poorly experts can predict the future comes from a Wall Street Journal performance analysis of 1,700 mutual funds. 


In 2008, only one earned a positive return.  That one fund represents zero-point-zero-six percent of all tracked mutual funds.  Surely, the fund managers of the other 99.94% didn’t expect to post negative returns on the year.


So, before you use predictions about the demise (or recovery) of the broader economy to make “personal economy” decisions, consider that the oft-quoted experts have a hugely better track record in analyzing the past than the future.


All we know for sure right now is that home prices are, in general, lower than at the time point last year, and mortgage rates are, too.  By 2010, both could be lower still.


Or they may not.

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A Cleaner, Eco-Friendly Paint For Your Home

January 5th, 2009 Categories: Uncategorized


Poor indoor air quality is linked to Sick Building Syndrome, a combination of ailments with more than 50 seemingly separate and unrelated symptoms, including:



  • Dizziness and nausea
  • Headache
  • Symptoms related to Irritable Bowel Syndrome
  • Personality changes

Avoiding sickness like this – as explained by The Today Show — may be as simple as choosing the right paint for your home. 


Most “standard” paints come loaded with chemicals called VOCs — volatile organic compounds.  The naturally-occuring chemicals are added to the paint to help it spread better and last longer.  Unfortunately, these same chemicals are damaging to soil and groundwater, react with sunlight to form dangerous ozone, and contribute to global warming.


There is a safer choice.


Non-VOC household paints are widely available for about the same cost as their toxic cousins.  They’re eco-friendly and, because recent advances in the manufacturing technology, the paint quality is outstanding.


To buy the non-VOC paints featured in the video, head to your local Benjamin Moore dealer, or get it online from Cox Paint.

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It’s 2009 : Mortgage Loan Limits Fall As Scheduled In “High-Cost” American Cities

January 2nd, 2009 Categories: Uncategorized

The 2009 Conforming Loan Limits, effective January 1, 2009


As part of the Economic Stimulus Act of 2008, Congress authorized a conforming loan limit increase in “high-cost” areas around the country. Versus the national conforming loan limit of $417,000, for example, a Manhattan home buyer could secure a 2008 mortgage for $725,000 and still be within “conforming” guidelines.


Effective January 1, however, those limits rolled back.  Conforming mortgages in the 59 designated high-cost regions are now capped at $625,500. 


In non-high-cost areas, the 2009 conforming loan limits remain unchanged from 2008.



  • 1-unit properties : $417,000
  • 2-unit properties : $533,850
  • 3-unit properties : $645,300
  • 4-unit properties : $801,950

Loans in excess of these dollar amounts are often called “jumbo”, or “super jumbo” home loans, depending on their size.  Jumbo home loans tend to be more costly than their conforming-sized cousins.

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