Jeff Pearl

Presidential Mortgage Update

March 9th , 2012

Average Mortgage Rate Trickles Down to 3.88%

The new weekly average 30 year mortgage rate is 3.88% according to GSA Freddie Mac. This is down from 3.90% last week and 4.88% one year ago. The National Board of Realtors Housing Affordability index now is at its best level since the 1970’s thanks to low mortgage rates and lower home prices. The Mortgage Bankers Association reported in its weekly survey that loan application volume decreased 1.2% from the previous week. The refinance share of the index fell to 77% of loan applications. The average rate for 15 year conventional loans was 3.13% down from 3.17%. The average rate for 5/1 conventional ARMs was 2.81%, down from 2.83%. Average rates surveyed are priced with 50%-1% discount points.

Points of Interest for You and Your Clients

FHA Updates: FHA changes for mortgage insurance are for case numbers assigned on or after April 9^th. This is a great reason for FHA buyers to move quickly and avoid the higher fees. All FHA loans will see the financed up-front MIP go from 1% to 1.75%. For loans under $625,500, the annual paid monthly MIP will rise .10%, so the factor goes from 1.15% to 1.25% for under a 5% down payment and from 1.10% to 1.20% for at least 5% down payment. Loans at or over $625,500 to $729,750 will receive an additional .25% increase to 1.50% factor for less than 5% down payment and 1.45% for 5% down payment. FHA also announced reducing the annual and monthly premium for FHA refinances on loans endorsed on or before May 31^st 2009. This will begin June 11.

Private Mortgage Insurance companies are looking to capitalize on the increased fees for FHA loans. Single and Monthly PMI premiums are much lower on conventional loans when the borrower can make at least a 5% down payment from their own funds. Single PMI premiums are very attractive and can be paid for by a seller or lender closing cost credit. Presidential Mortgage works with PMI companies that have competitive rates and are dependable.

Many agency and government loans now require lender review of the termite report. For that reason it is important that any required treatments or repairs are made ahead of settlement and cleared on the reports. In the past only Veterans loans required lender termite report review.

Have a breezy weekend! I am available on the cell phone 703-303-6434 or email john.melnick@presidential.com

Jeff Pearl / REALTOR

RE/MAX Distinctive

703-727-4876

jeffpearlhomes@gmail.com

jeffpearlhomes.com

Equal Housing Opportunity Provider

Mortgage Acts and Practices Advertising Disclosure ( MAP)

This communication is provided to you for informational purposes only and should not be relied upon by you. RE/MAX Distinctive is not a mortgage lender and so you should contact any lender of your choice directly to learn more about its mortgage products and your eligibility for such products.

Recent question from Buyer: "Can we meet Sunday so you can drive me around and show me all the lots for sale in your area?" ( Western Loundoun VA)

Me: Maybe, what kind of lot are you looking for?

Buyer: I want a 3-6 acre lot. I see you have several listed in the 140- $170,000. range. I'd like to look at all of those.

Buyer: Oh, but I wanted to let you know that my budget is only $80,000.00 How long have they been on the market.

Me: Well, it doesn't really matter how long they've been on the market, I know all of the sellers, and I already know none of them will sell their lots for $80,000.00, so there is no sense in me driving you around to look at them.

Notice to buyers: Days on market has nothing to do with value of property. Get rid of the thinking that you can buy property for $50-60% of fair market value just because they've been on the market over 90 days. No one in this business has time to waste with thinking like that.

Try going to you local new car dealer and asking them how many days those cars have been on the lot. Then try telling the dealer that there must be something wrong with all of them if they've been on the lot more than 90 days. Then ask them if they'll sell you a $50,000. 00 vehicle for $25- $30,000.00

Jeff Pearl / REALTOR

RE/MAX Distinctive

703-727-4876

jeffpearlhomes@gmail.com

Equal Housing Opportunity Provider

If you're not using social media, you probably missing out on many networking and marketing opportunities. The 3 most common still seem to be facebook, linked in, youtube, and twitter. For more ideas on using social media in real estate, next week on Monday Feb 13, social media week begins. For information, go to http://socialmediaweek.org/washingtondc

When marketing properties, I try to keep up with all the latest trends in technology, and test each method out when time allows, and use the ones that produce results and help get my listings sold, and make the phone ring. There is always something new to learn in technology and social media.

If you're looking for an agent that utilizes all effective forms of technology and social media, then contact Jeff Pearl.

Jeff Pearl / REALTOR

Homes / Land / Farms

RE/MAX Distinctive is Lic in VA, MD, DC

703-727-4876

jeffpearlhomes.com

jeffpearlhomes@gmail.com

Equal Housing Oportunity Provider

Also contact me if you need help and consultation on Short Sales

I've been so busy with other things that I have only blogged a handful of times over the last couple months. But sometimes when I see the same mistakes being made over and over, I have to blog.

The scenario is common- Owner lists their property as a short sale with an agent that doesn't have much or any experience doing short sales.There are two recent ones near here that I am familiar with, but I'll only blog about one. Scenario is typical- Listing agent lists for $50-$60,000. above assessed value and comps, then makes huge price drop about 30 days later. Gets contract in this case on Jan 13th. ( I'm betting the contract is too low to get lender approval, but that's just my opinion based on my experiences with short sales). MLS states " Last contingency expires Apr 15th". I happen to know that the owner thinks she is just waiting on approval from the lender. I'm assuming that the listing agent, buyers, and buyers agent also think they are waiting for lender approval which they all hope to get before Apr 15th.

I monitor some of the auctions when I have time, and this property is scheduled to be auctioned off on Monday Feb 13th. I'm betting this will be a surprise to all involved. I wonder how much stress it causes the seller whenever an investor shows up to tell him/her that they just bought their property at an auction? Sellers could still be living in house thinking they have 30 more days to wait for lender approval, and another 15-30 days to go to closing, then wham, reality catches them unprepared.

Luckily, in many of these situations, the investor/buyer will work with the owners, and many times will just rent the property to the current owner. But what if they don't? What if they just can't aford the rent the new owner wants? They should be somewhat prepared to move since they are trying to sell, but when theie mve out date gets moved up 30-60 days with little warning, things can get stressful for a lot of families.

Owners- If you are facing a short sale / distress sale situation, make sure ou hire an agent experienced in doing short sales. You may need to consult an attorney, a tax professional, and interview more than a couple agents. Don't let stress and pressure cause you to make bad decisions. Designations do not take the place of experience.

Jeff Pearl / REALTOR / LIC in VA

CDRS - Certified Default Resolution Specialist

CDPE- Certified Distresses Property Expert

RE/MAX Distinctive

703-727-4876 / jeffpearlhomes@gmail.com

Ellen Found the Funniest Real Estate Listings! http://www.youtube.com/watch?v=KnB4FOCgfKs

Sorry, just have to copy/paste into your browser.

Jeff Pearl / REALTOR / Lic in VA

RE/MAX Distinctive

703-727-4876

jeffpearlhomes.com

Equal Housing Opportunity Provider