Boise Mortgages

In October, we received a pleasant surprise: home sales were higher than expected, and actually reached the highest level we’ve seen in 2.5 years. That’s right – we’ve been dealing with a slump for two and a half years now.

The rise is promising news, although convoluted by other recent news of 1 in 4 homeowners being underwater – that is, owing more on their mortgage than the current value of their home. It’s hard to make sense of all these various real estate figures, but experts seem to agree that things are moving in the right direction. As long as those 1 in 4 homeowners can continue to afford their mortgage payments and don’t need to sell anytime soon, being upside down isn’t as tragic as it could be.

One complication: If the rise in home sales is due mostly to first time buyers rushing to take advantage of the tax credit that was set to expire, we can’t count on that for a long-term solution. But it may be enough to jump start the market in the right direction, especially with the recent extension and expansion of the tax credit.

Whether or not real estate is improving is really a matter of where you live. Some markets are stronger than others. Idaho real estate, for example, is slightly lower than the national average in terms of median home value - $171,827 versus $190,781 nationally. Idaho real estate values are slightly less than they were just a year ago.

For those entering the market, it means affordability is high – especially when paired with low Idaho mortgage rates. Factor in that tax break if you qualify, and you’ve found yourself a great time to purchase your next home. If you’re an Idaho homeowner looking to sell, however, you need to be prepared to accept a selling price less than what you may have originally thought your home was worth. But as long as the value of your home is more than what you owe, you’re still in a good position.

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The fourth quarter of the year is generally a very slow one in real estate. The holidays keep everyone busy, and families don’t want the stress of moving over the holiday season – or in cold weather, in some parts of the country. This year may be different, according to experts, due to the extension and expansion of the first-time homebuyer tax credit.

Under the new terms, buyers must have a sale agreement in place by April 30^th, and the credit is now also available to some qualifying repeat buyers as well. The tax credit is said to have contributed significantly to new home sales over the past year, and many experts think the extension/expansion will continue to provide a boost in the fourth quarter of this year.

First time buyers who didn’t have an opportunity to take advantage of the original tax credit, but wanted to, now have a chance to continue searching for their perfect home. An influx of repeat buyers may flood the market as well, and potential buyers aren’t going to want to waste any time. Repeat buyers are often in a better position to purchase a home, because they can often obtain funds for a down payment through the sale of their existing home. This potential influx would provide a much-needed boost to the recovering, yet still struggling, real estate industry.

New and repeat home buyers have just five months to find the perfect home. Idaho real estate has plenty of fabulous homes to choose from in a variety of price ranges to suit any budget. Idaho mortgage rates, in line with national rates, recently made news for hitting the 5.00% mark yet again, so it continues to be affordable to borrow money under the current market conditions.

If you’re considering making a move, act quickly to take advantage of the expanded tax credit. It can take several months to find a home that you’re happy with, and new foreclosures continue to hit the market every day. Contact a lender from our network of Idaho mortgage lenders for a pre-approval and start your search today!

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The latest reports indicate that approximately 20% of homeowners at least 60 days behind on their mortgage payments have received trial loan modifications. This figure is up from a reported 16% last month, which is moving in the right direction, but experts still say President Obama’s rescue plan hasn’t had the expected or hoped for impact on troubled homeowners.

Unfortunately, as we reported earlier, new foreclosure filings hit a record high in the third quarter. With thousands upon thousands of new foreclosures piling up, it appears as though the mortgage modification plan is failing to keep pace. Despite this, administrators claim the plan is on track to rescue up to 4 million homeowners as originally planned.

What’s to blame? Lost paperwork, incomplete paperwork, homeowners not qualifying due to too little income or too much home equity.

The continued increase in foreclosure filings seems to be contributing indirectly to low mortgage rates. Rates on some 30-year, fixed loans dipped below the 5.00% mark again within the past week, while others hover comfortably close to the coveted 5.00% mark. Idaho, in particular, was one of the top ten states for the highest rate of foreclosure filings in the third quarter, which could continue to have a positive impact on Idaho mortgage rates.

Pending home sales are also on the rise, which could help to stabilize the Idaho real estate market. The majority of states reported an increase in pending home sales for the third quarter, a trend that will continue to be fueled by the extended and expanded tax credit.

Contact one of our trusted Idaho mortgage lenders today to find out if you qualify for the extended tax credit or for more information on loan modification programs.

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You’ve probably heard that Congress was reviewing the possibility of extending the first time homebuyer tax credit. Yesterday, Congress approved the extension, and it’s now on its way to President Obama for his final approval. For those of you who were scurrying to find the perfect home in time to take advantage of the $8,000 gift from Uncle Sam, you now have a few more months to continue your search.

There is now a tax incentive to purchase a home through April 30, 2010, and a new incentive has been issued for buyers that aren’t first-timers: these buyers may be eligible for a tax credit of up to $6,500.  First-time buyers could still be eligible for a tax credit up to $8,000.  In order for existing home owners to be eligible for the credit, they must have been in their current principal place of residence for five years or more.

To take advantage of this extension, you need to have a sales agreement by the ending date of April 30^th, and you have until June 30^th to complete closing.

More home buyers may be eligible for this tax credit under the extension, as well. The income limits for the original credit were $75,000 for single taxpayers and $150,000 for joint taxpayers. Under the extension, income limits have been raised to $125,000 and $225,000, respectively. Idaho mortgage rates are still low, making now an ideal time to purchase Idaho real estate when combined with this generous government incentive.

Many are attributing a decrease in real estate inventory to the tax credit, and the National Association of Realtors says 1.2 million new and existing homes were sold solely as a result of the tax credit. An extension of several months will provide an incentive for those who thought they were running out of time as well as provide new opportunities and incentives for those who previously didn’t qualify. If the first round is any indication, this tax credit extension could provide a significant boost to the real estate industry.

Contact one of our trusted Idaho mortgage lenders for a pre-approval today to begin your search of the many fabulous properties currently available in Idaho real estate!

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The recent wave of properties entering foreclosure has prompted novice investors to try their hand at real estate investing. Many are shying away from property flipping, because they fear the newly renovated property won’t move fast enough once it’s back on the market, shrinking profits drastically. However, there are a number of investors looking at the abundance of foreclosures as an opportunity to get into the rental property business.

It’s certainly a great idea for someone who knows what they’re doing or does their homework, but there are a number of factors that should be taken into consideration first.

·         Consider the market. Do some research and find out what the percentage of renters to homeowners is in the local area.

·         What’s the average monthly rental for a home similar to the one you’re considering? You won’t be able to command a fee much higher than the average unless your rental property is something special.

·         Consult with an Idaho mortgage broker. Find out what your financing options are for an investment property, and what your monthly mortgage will be. For rental properties, it’s a good idea to escrow your taxes and insurance so you’re not surprised by a tax bill mid-year. Will the average month’s rent cover all your expenses?

·         Create a budget. You should be able to cover several months rent without a tenant. Depending on the amount of work that needs done to the property to make it tenantable, you may even need to pay several months rent upfront before even renting the property out. Things happen – tenants don’t pay, they break their lease, and you’re the one stuck with a mortgage to pay.

·         Buy smart. There are an abundance of foreclosure gems in the Idaho real estate market right now, but never buy a property without a tour and inspection. Often foreclosures have unforeseen problems that must be repaired before renting the property, and without a property inspection, they could be easily missed.

If you follow these simple guidelines and invest wisely, now is a great time to get into investing in Idaho real estate. Property values will begin to creep up again over time, and you’ll be building equity in a property that you’re really not paying for (or at least not paying much for). Work with a trusted Idaho lender to get the best financing options available.

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For the first time in a year, the Dow Jones Industrial Average topped 10,000.  JP Morgan Chase has reported higher than expected earnings for the third quarter, and banks and securities firms are reported to be paying out record levels of employee compensation and bonuses this year.

Amid what seems to be highly promising news about the state of our economy, a rather gloomy fact looms: Foreclosures have hit an all-time high. How can this possibly be happening? It’s apparent that Wall Street is on its way to economic recovery – and not long after the government spent billions of dollars bailing out the very financial institutions that are now reporting record earnings.

Foreclosures have risen a whopping 23% since this time last year, with approximately 940,000 homes falling into foreclosure during the third quarter. That’s nearly 1 in 136 homes in the U.S. that received a foreclosure filing in the third quarter alone! The national unemployment rate is predicted to soon top 10%. We may just be witnessing a widening gap between the upper and middle classes.

In Idaho real estate, foreclosures rose 28% during the third quarter – 5% higher than the national increase. Nevada, Arizona, and California topped the list for the highest foreclosure rates in the third quarter – a trend we’ve been seeing since near the beginning of this economic crisis. Idaho, unfortunately, made number five in the top ten states with the highest foreclosure rates.

For investors or those considering a move to the beautiful state of Idaho, it should be easy to find a bargain in Idaho real estate for some time to come. We’re entering the typically slower winter months, so it’s not likely that inventory will decrease significantly in the near future – paving the way for a buyer’s market in Idaho real estate through next fall.

Call an Idaho mortgage lender to take advantage of current low interest rates and find out about various loan programs for which you may qualify. You could get a great deal on an Idaho foreclosure!

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In many cities, residents are finding it cheaper to own their own home than to rent. Rental rates haven’t suffered as significantly as housing prices, because the demand for rental properties actually increased throughout the housing crisis, as families who could no longer afford their mortgages resorted to renting.

If you’re making a move to a new city, such as beautiful Boise, Idaho, do some research before jumping in to a rental – check out the local housing prices and contact an Idaho mortgage broker to get information on interest rates. You may be surprised to find that your monthly mortgage payment could actually be less than the average rent in the area!

Even better news is that once you’re a homeowner, you qualify for some tax breaks available exclusively to homeowners. For example, mortgage interest you pay on your Idaho home loan is tax deductible – a sizeable sum in the early years of your loan term, as most of your payments for several years go to interest.

Property taxes are often something first-time homebuyers are afraid of. Renters aren’t obligated to pay property taxes – that responsibility falls on the shoulders of the property owner. Making the leap to home ownership is scary because of all the perceived added costs, including property taxes. However, property taxes are fully tax deductible!

You can also qualify for tax deductions for making home improvements. Currently there are tax rebates available for making energy-saving improvements to your home, such as purchasing Energy-Star appliances.  Keep all receipts throughout the year for improvements you make to your home. While they won’t all be tax deductible, you can consult with your accountant or tax preparer at the end of the year to determine which investments are tax-deductible, and not have to worry about having the appropriate documentation.

Contact one of our Idaho mortgage specialists today for information on current Idaho mortgage rates and loan programs!

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Nearly half of all home sales in the first part of the year were attributed to first-time buyers, setting new historic records. There are a few factors that make the current market prime for the first-time buyer: low prices, loads of inventory, and of course that $8,000 tax credit we’ve all been talking about for months.

Typically, first-time buyers don’t receive the gold standard royal treatment by real estate agents that seasoned buyers and investors do, particularly those looking at $1 million-plus properties. The simple fact of the matter is that an agent is going to make more money from what could essentially be the same amount of work when dealing with higher-ticket properties. First-time buyers generally seek out fixer-uppers or lower-priced homes because they often lack the capital required for a significant down payment.

Now we’re seeing more first-timers than ever before, because real estate market conditions have led to greater home affordability and the $8,000 tax credit provides that extra little push needed to get them to take action. Imagine what the market conditions would be like with 50% fewer buyers in the first part of the year!

First-time buyers are now seeing better treatment by agents, who are willing to take whatever business they can get. The Idaho real estate market is prime for first-time buyers, with hundreds of affordably-priced properties waiting to be snatched up by a young family in pursuit of the American dream. Idaho mortgage rates are still historically low, so rising interest rates aren’t really making a negative impact on affordability at this point.

And, of course, that $8,000 tax credit – we may be tired of hearing about it, but you have to admit it sweetens the deal. Idaho first-time homebuyers can recoup a significant portion of a down payment, and even take advantage of it before tax time with special loan programs that are available to qualified buyers. Bottom line: bring on the first-time buyers, they could be saving the market!

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