About Palos Verdes Peninsula's Westfield

Last week, a report was irresponsibly leaked to the press that the Federal Resrve was considering a plan whereby they would purchase mortgage backed securities from Fannie Mae and Freddie Mac with the intention to drive interest rates on conforming loans (loans less than $417,000) down to 4.5%. There were no details released on the speculated plan, with no information given as to who who would qualify for the mortgages to be issued. There also was no confirmation of how this plan would differ from previously announced plans by the Fed to purchase securities from Fannie Mae and Freddie Mac that have lowered interest rates on conforming loans to the 5.25% range (loans from $417,000 to $625,500 are generally a quarter of a point higher).

For those borrowers who now feel that they should wait a while to see if interest rates will go down that low, I have one piece of advice, "Pigs get fat, but hogs get slaughtered".

Rates thru mid-2008

Interest rates are now at the lowest rates in over 30 years, and there is no basis at all in expecting interest rates to go significantly lower If you can qualify for a conforming mortgage today, I would advise you to jump at it.

What the Federal Reserve really needs to address, however, is the difficulty that borrowers have in obtaining a loan in excess of the "super conforming loan" limit of $625,500 (so called "Jumbo Loans") . These loans are generally only available for a fixed term of 5 to 7 years, and are currently at a rate of approx. 6.25%, a full one percentage point above conforming loan rates. Before the fiscal crisis hit this summer, the spread between the two was a low as a quarter of a point.

For more information about buying or selling a home in the South Bay beach communities and the Palos Verdes Peninsula, visit my website at http://www.maureenmegowan.com

Home Improvements can substantially increase the value of your home, but it is important to understand that most home improvements will not necessarily lead to an increase in the home value at least equal to the investment. According to a 2007 Annual Survey prepared by Remodeling On-line, on average you can expect to recover the following percentage of your investment in your remodeling projects (You can see the full results at my webpage Home Improvements ) :

Minor Kitchen Remodel 104%

Window replacement 103%

Mid range major kitchen remodel 97%

Mid range bathroom remodel 97%

Other home improvement projects ranged from a master suite addition (77% recovery) to a roof replacement (89% recovery ).

In our experience, a good kitchen remodel can often lead to an increase in value to the home greater than the investment. The bathroom remodel is a close second place. The complete 2006 survey of cost versus recovery analysis as well as cost estimates for typical home improvements can be found at Remodeling On-Line

The following is a minor upscale kitchen remodel which we have done to my personal residence in Palos Verdes Estates, California, which cost approx. $25,000 (this minor remodel exceeded the $23,000 estimated above due to substantial rework on the cabinets in the center island and the new refrigerator). The work included new granite counters, new kitchen sink and fixtures, new limestone back splash, refinished cabinets, new stainless steel refrigerator, and enlarged and expanded storage in center island.

Kitchen before remodel

Kitchen after remodel

Kitchen before remodel

Kitchen after remodel

Improvements to the front of the house can have a strong positive impact on the property's curb appeal which can greatly improve a buyer's initial impression of your home, thus leading to a higher sales price and a shorter sales period.

For more information about Home Improvements , visit my website at http://www.maureenmegowan.com