August 2008
Monthly Archive
Posted by admin on 18 Aug 2008 5:19 pm. Filed under
Idaho Home Loan.
Real estate prices continued to post exorbitant year-over-year declines during the three months ended June 30, 2008 according to a new report from the National Association of Realtors (NAR)
Nationwide, the median existing single family home price plummet 7.6% to $206,500 in the second quarter, down from $223,500 in the same period of 2007. The median price represents the point at which half of all homes sold for more and half sold for less.
A record number of foreclosures helped drive down prices, according to NAR. In fact, foreclosures and short sales accounted for about 33% of all existing homes sales.
Banks price homes to sell when demand for homes drops, typical Idaho sellers will take their homes off the market, let them sit or reduce their prices in small increments. But banks will slash prices to where the homes will sell quickly. Poor economic conditions are also hurting the housing market as a whole.
During the boom, many housing markets thrived despite tough economies. We’re now we’re getting into a time when the actual economy is starting to affect housing markets even more.
Despite the media Boise Idaho real estate still proves to be a great investment compared to Say Sacramento California where home prices plunged 35.6%, Los Angeles 29.6% and Phoenix was down 22.5% for the quarter.
The average median price for Boise City – Nampa Idaho is now $191,000 making it a marvelous time to get into the home of your dreams. With the FHA down payment assistance program still in effect until Oct.1st you can purchase a bargain for little to no money out of your pocket.
Written by Lisa Kratz Apex Mortgage | Meridian, Idaho
| (208) 888-9251 | myIdahoHomeLoan.com
Posted by admin on 11 Aug 2008 6:48 pm. Filed under
Buyer's Market.
Effective October 1, 2008 the popular down payment assistance (DPA) program will be eliminated. Some lenders are already not excepting applications for this program as of this Friday August 15, 2008.
What Is Down Payment Assistance?
Down payment assistance is a program that is offered by a few select non-profit companies. We used two in particular in our office. Down payment assistance effectively considered a ‘Gift Source’ by the FHA (FHA is one of the largest mortgage insurers). The down payment assistance is given to the buyer at closing. At closing, the seller reimburses the non-profit organization from the profit of their home including a small admin. fee.
How Much Money Could You Get?
The FHA loan program allowed up to 6% of the purchase price from the non-profit.
This could apply towards (or completely cover):
- Down Payment
- Closing Costs
- Pre-paid escrowed Items (taxes, insurance, etc.)
President Bush signed the Housing and Economic Recovery Act of 2008 making private down payment assistance (DPA) programs no longer available.
What does this mean to you?
If you or someone you know is interested in purchasing a home with little or no money down, the deadline to find a home and close is October 1, 2008 – only a few weeks away!
100% loans are already gone. This could be the last chance to buy a home without the minimum 3% or 5% down payment.
As of right now down payment assistance programs (DPA) in FHA loans are currently the only true “zero-down” mortgage option for home buyers, as the conventional market has shifted to requiring at least 5% investment from the borrower. Well, the day has come. As part of the forthcoming congressional housing stimulus package, DPA will be gone as of October of this year. American consumers now really, truly, honestly, legitimately, must again compile a sizable nest egg to finance the purchase of a home.
If you are considering buying a home in the next 4-6 weeks I encourage you to take advantage of this program and call me direct at (208) 888-9251.
Written by Lisa Kratz Apex Mortgage | Meridian, Idaho
| (208) 888-9251 | myIdahoHomeLoan.com
Posted by admin on 7 Aug 2008 12:22 pm. Filed under
Idaho Mortgages.
A misunderstanding regarding the way your credit card works could cost you money, and the lowest
Idaho Mortgage Rate.
Does the way you pay your credit card effect your credit score? I am asked this question a lot when speaking to my Idaho mortgage clients. Below I have prepared a list of common misunderstandings.
*Paying your credit card on time is all you need to worry about: In the old day we were taught that if you pay your balance on time, your credit score will never be tarnished. Unfortunately, that hasn’t been the case with the credit bureaus. Your score can drop, even if you make your payments on time. The hiccup in your financial history will occur if you’re maxing out your limit on a monthly basis. Credit bureaus will deduct points from your overall credit score if you get too close to your limit’s maximum. If you find you’re maxing out on a monthly basis, ask for an increased limit. A good rule of thumb is staying at 30% of the overall limit.
*If you don’t activate your card, your credit card account won’t count: If you get cold feet and decide that a credit card isn’t for you, failing to dial in the activation number won’t stop it from showing up on your credit score. The bureau still recognizes a new account, whether you activate it or not. Having more then 5 credit cards available to you can also lower your credit score indicating risk to the bureaus and your Idaho Mortgage lender.
*Your signature on the back of the card: On the back of a credit card is a little white box reserved for your John Hancock. The function of this signature box is extremely important: It’s the only form of ID a credit card company requires when you make a purchase. If a merchant asks for an ID, you have the right to refuse. In fact, you should immediately go on the defensive. The inquiry may be the act of an identity thief on the prowl who’s looking to scam your driver’s license number or other personal information.
* Don’t close old, paid-off accounts: We used to tell people to close accounts they weren’t using. Now here’s the word from direct from Craig Watts, an executive at Fair Isaac & Co., one of the leading credit scorers: “Closing accounts can never help your score, and often it can hurt. This knowledge is frustrating to those who want to simplify their lives and reduce the opportunities for identity theft by closing unused accounts. But credit facts are credit facts.
If you close your oldest accounts, it can actually shorten the length of your reported credit history and make you seem less credit-worthy.
Written by Lisa Kratz
Apex Mortgage | Meridian, Idaho | (208) 888-9251 | myIdahoHomeLoan.com
