Illinois

Is It A Stop Sign Or A Coast Sign?

03-10-12

Michael Hobbs

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Office: (773) 388-0003

Unfortunately, it should not come as a surprise in today's time-starved world, but nonetheless it did.

I learned today that this is not a Stop sign.

Stop Sign

It is more commonly known as a Coast sign. Yes, that is right. In Chicago, they have renamed these lovely red with white trim signs to Coast signs. Granted, I don't suspect Mayor Rahm Emmanuel is going to make an announcement any time soon, but be forewarned.

Next time you see a car approaching an intersection with one of these Red with White trim 'Coast' signs, you'll know that they there almost zero probability that the driver is going to come to a complete stop and instead coast through the intersection.

And for the rest of us, be careful of those 'Coast' drivers.

Michael Hobbs, PahRoo Appraisal & Consultancy

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FHA will lower its Upfront Mortgage Insurance Premium

03-09-12

dale taylor chicago illinois realtor chicago illinois homes townhomes condos

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Office: (815) 485-5500

Mobile: (708) 439-0165

FHA’s Streamline Refinance Program could benefit millions of borrowers whose mortgages are currently insured by FHA.

Cecelia Marlow a respected Loan Officer shares news beginning June 11, 2012, FHA will lower its Upfront Mortgage Insurance Premium (UFMIP) to just .01 percent and reduce its annual premium to .55 percent for certain FHA borrowers.

Qualifications:

1. Borrowers must be current on their existing FHA insured mortgage.

2. Mortgage must have been endorsed on or before May 31, 2009.

Currently, 3.4 million households with loans endorsed on or before May 31, 2009, pay more than a five percent annual interest rate on their FHA-insured mortgages. By refinancing through this streamlined process, it’s estimated that the average qualified FHA-insured borrower will save approximately $3,000 a year or $250 per month.

More Changes Ahead

Late last month, FHA also announced it will increase its upfront premiums on most other loans by 75 basis points to 1.75 percent. In addition, FHA will raise annual premiums 10 basis points and 35 basis points on mortgages higher than $625,500. Read FHA’s new Mortgagee Letter.

This will be effective for all FHA Mortgages originated after April 1, 2012.

Cecelia Marlow

Mortgage Banker

NMLS #294376

Contact Information

Direct (312) 738-6294

Fax (312) 491-7704

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The value of household real estate fell by $367.4 billion

03-09-12

dale taylor chicago illinois realtor chicago illinois homes townhomes condos

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Office: (815) 485-5500

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Household Worth in U.S Increases as Stock Prices Rebound

By Shobhana Chandra - Mar 8, 2012

Play

Foreclosure Aid May Help Property Investors

Household wealth in the U.S. climbed from October through December for the first time in three quarters as an increase in stock prices outstripped a decline in home values.

Net worth for households and non-profit groups increased by $1.19 trillion in the fourth quarter, or 2.1 percent from the previous three months, to $58.5 trillion, the Federal Reserve said today in its flow of funds report from Washington. Housing wealth decreased by the most in more than a year.

Enlarge image

Household Worth in U.S. Rises for First Time in Three Quarters

Chip Chipman/Bloomberg

Buildings in San Francisco.

Buildings in San Francisco. Photographer: Chip Chipman/Bloomberg

Enlarge image

Household Worth in U.S. Rises

Jacob Kepler/Bloomberg

Rows of houses stand in Las Vegas, Nevada.

Rows of houses stand in Las Vegas, Nevada. Photographer: Jacob Kepler/Bloomberg

The Standard & Poor’s 500 Index (SPX), which rose 11 percent in the final three months of 2011, is again climbing this year as the improving job market builds confidence in the expansion. At the same time, the gain in wealth last quarter was less than half the previous period’s slump, indicating households may continue to repair balance sheets hurt by the recession.

“Consumers are generally repairing their balance sheets,” said Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia. “The performance of the stock market has been a crutch for households. Consumer spending is constrained by the need to pay down debt.”

Since reaching a five-year low of $50.5 trillion in the first quarter of 2009, net worth has improved by $8 trillion. That still leaves it $8.4 trillion below the record high of $66.8 trillion reached in the quarter ended June 2007, six months before the recession began.

Real-Estate Wealth

The value of household real estate fell by $367.4 billion in the last three months of 2011, the first decrease in three quarters.

Owners’ equity as a share of total household real-estate holdings dropped to 38.4 percent last quarter from 38.9 percent.

The S&P/Case-Shiller national index of home prices decreased 4 percent in the fourth quarter from the same time in 2010, according to figures released Feb. 28. The gauge fell 3.8 percent from the prior three months before seasonal adjustment, and fell 1.7 percent after taking those changes into account.

The value of financial assets, including stocks and pension fund holdings, held by American households increased by $1.46 trillion in the fourth quarter, according to today’s flow of funds data.

The S&P 500 has risen 7.6 percent this year through yesterday amid better-than-estimated economic data and expectations Europe would tame its debt crisis.

Household Debt

Household debt rose at a 0.3 percent annual rate last quarter, the first increase in more than three years, today’s report showed. Mortgage borrowing decreased at a 1.5 percent pace, the 11th consecutive drop. Other forms of consumer credit, including auto and student loans, climbed at a 6.9 percent pace, the biggest gain in at least seven years.

The labor market may help to repair household finances. Payrolls rose by 210,000 in February and the jobless rate held at 8.3 percent, according to the median forecast of economists surveyed by Bloomberg News before a Labor Department report tomorrow.

Company balance sheets are faring better than households, today’s report showed. Businesses had a record $2.23 trillion in cash and other liquid assets at the end of the fourth quarter, up from $2.12 trillion in the prior three months.

Total non-financial debt climbed at a 4.9 percent annual pace last quarter, led by a 13 percent increase by the federal government and a 4.6 percent gain among businesses. State and local government borrowing dropped at a 1 percent pace.

To contact the report on this story: Shobhana Chandra in Washington at schandra1@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

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This Month in Real Estate 2012

03-09-12

Helen Oliveri

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Office: (847) 967-0022

Secondary: (847) 967-0044

It's time to Spring Forward! Don't forget to set your clock ahead 1 hour at 2am this Sunday, March 11, 2012. It's also a great time to change the batteries in your smoke detectors!

March 2012 Market Update

Opportunities in the housing market continue to grow for buyers and sellers. Home affordability, driven mostly by record low interest rates, is among the lowest it has ever been. According to the National Association of Realtors, and based on national averages, the payments on a home today represent 12.8% of the median household income. This is both a good sign for those looking to purchase a home, and for the economy overall as consumers are keeping more money in their pockets.

If you’re seller, the housing market shows signs of transitioning from a buyers’ market more of a balanced one. This means that home owners should start to see prices stabilize and begin to grow, presenting more favorable opportunities for those looking to sell their homes. In regards to the number of homes on the market, a key indicator of the health of the housing market, Lawrence Yun, NAR chief economist, said, “The broad inventory condition can be described as moving into a rough balance, not favoring buyers or sellers.”

With continuing job creation, the improving housing sector, and signs that the banks are beginning to lend more, 2012 looks to offer promising opportunities to both those looking to buy or sell a home.

Home Sales

in millions

Home sales were up 4.3% in January from December 2011 to 4.57 million (seasonally adjusted), and this is up from 0.7% from the year before. The steady increase in home sales over the last few months is positive encouragement for a continued housing recovery. Lawrence Yun said, “The uptrend in home sales is in line with all of the underlying fundamentals– pent-up household formation [lack of new home construction], record-low mortgage interest rates, bargain home prices, sustained job creation, and rising rents.”

Home Price

in thousands

Adding to home affordability in January, the median home price was down 2% from a year ago, to $154,700. While prices are still declining, foreclosed and other distressed properties, which have been putting downward pressure on home prices, are being moved more efficiently off the market, and default rates on home mortgage payments for the past three years are among the lowest in history.

Inventory- Month's Supply

in months

As sales increase with a growing demand for homes, the inventory of properties for sale fell 0.4% to 2.31 million, or a 6.1-month supply at the current sales level. This is down from a 6.4-month supply in December 2011. Historically, a 6-month supply has meant that the housing sector is balanced–favoring neither buyers’ nor sellers’.

Source: National Association of Realtors

Interest Rates

The most powerful indicator of home affordability, interest rates on mortgage loans, were down again in January. The national average for a 30-year fixed mortgage was 3.92%, down 0.04% from the month before, and down nearly an entire percentage point (0.84%) from a year ago. These historically low rates, coupled with today’s home prices, represent an incredible opportunity for home buyers.

This Month's Video

Topics For Home Owners, Buyers & Sellers

Preparing your home for sale can seem daunting, but these tips will help you get the best price in the least amount of time.

1. Organizing and cleaning are crucial when prepping a home for sale. Potential homebuyers have a more positive reaction to a home that is clutter-free and that gives them the feeling it is “move-in ready.”

2. Determine replacement estimates before listing your home, even if you are not planning on making the replacements yourself. This information can help buyers make informed decisions.

3. Have your warranties ready—especially for home appliances that will stay with the home after the sale.

4. Curb appeal is a crucial factor because it determines first impressions. A poor first impression can cloud their entire opinion about the home.

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Is that the smell of sweet success in your home ... Or ???

03-09-12

Gene Mundt Mortgage Lender Chicagoland Mortgage Lending

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Office: (815) 277-4036

Mobile: (708) 921-6331

Is that the smell of sweet success in your home ...

Or ???

I'm an advocate of staging services when selling homes. I think, especially in the present challenging housing market, that sellers often-times need every advantage possible to gain the sale they seek.

I'm also the husband to a chronic migraine sufferer. And to anyone that knows and loves someone that deals with this horrendous affliction ... you know that many things can prove to be a "trigger" for a headache. And that includes smells.

Enjoy the Sweet Smell of a Successful Mortgage with Gene Mundt, Mortgage Lender It has been said that nothing is more memorable than a smell. And that can be good ... or bad ...

It only stands to reason, that if a home smells like animals, litter box, stale, musty, or of cigarettes ... many potential buyers are going to balk at buying. If those odors are bad enough, carpeting, window treatments, and even drywall may have to be replaced. And that means extra expenditures for buyers.

Uh-oh. Can you say "peeeee-uuuuuuu"?? Compare that home with odors to a similarily-priced home without ... and there's not much of a guess as to which home is going to sell more quickly.

That's a simple comparison. But it's been my experience as someone that has lived with a migraine sufferer for 35 years, that smells that are typically thought of as pleasant to most ... can be unpleasant or toxic to someone that gets severe headaches.

ANY smell can be someone's "trigger". The reaction can be immediate, with the mere whiff of the "trigger" smell enough to start a long and painful migraine episode requiring medications ... or a retreat to bed or a bathroom. (Be aware, that this can also be the reaction for someone with respiratory problems, as well.)

So as strongly as I advocate finding the "sweet smell of success" through the talents of staging professionals and the use of their staging techniques during the sale of properties ... I also advocate and urge all professional Stagers, real estate agents/brokers, and home sellers themselves ... to NOT place scents, perfumes, candles, potporri, air fresheners, herbs, flowers, i.e. ANY odor-producing items in properties while they are actively being shown for sale.

Should they be utilized,you may be innocently and inadvertently placing a potential buyer at health risk ... and the view/sale of the home in jeopardy.

Remember, a potential buyer will never buy a home that they cannot enter or cannot view ...

* Smell the "sweet success" of selling your home ... or buying a new one. With over 35 years of successful mortgage business behind me, I can offer you referrals to real estate's finest home staging and agent/broker professionals ... besides my own mortgage services. Should you need answers to your questions or assistance, please contact me. I'll be happy to hear from you and put my experience and expertise to work for you.

Contact me at any of the following:

Direct: 815.277.4036 Cell/Text: 708.921.6331

Email: gmundt@thefederalsavingsbank.com

Website: www.genemundt.com

Skype: 630.219.1316

Click here 4 a: NO Cost NO Obligation Mortgage Consultation

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