October 2008
The Strength In New Home Sales Shows That Banks And Builders Have Figured Out The Market
October 28, 2008 by MikeRosen · Leave a Comment
Despite turmoil on Wall Street, the housing sector continues to deliver good news.
Last month, led by a 22 percent surge from the West Region, New Home Sales rose 2.7 percent over August.
A “new home” is a newly-built residence, never before lived in. New homes are usually built and sold by real estate development companies [...]
Why LED Light Bulbs May Be Better Than Compact Fluorescent Light Bulbs
October 27, 2008 by MikeRosen · 1 Comment
Now that you’ve replaced your home’s energy-hogging light bulbs with compact fluorescent ones, meet the next wave of environmentally-friendly home lighting — LED.
Though nearly 10 times as expensive as compact fluorescent bulbs, LED lights hold several advantages as a green alternative:
LED bulbs consume up to 1/30th of the energy of a CFL
LED bulbs contain [...]
Home Sales Are Up, Home Supply Is Down — This Is What A Recovering Market Looks Like
October 24, 2008 by MikeRosen · Leave a Comment
Statistics are what you make of them, but sometimes, they can provide good perspective.
For example, from its peak in 2005 to its trough in late-2007, the number of “used” homes sold nationwide plunged.
In 2005: Roughly 7 million homes sold annually
In 2007: Roughly 5 million homes sold annually
Through all of 2008, though, Existing Home Sales [...]
Foreclosures Fell 12 Percent in September 2008
October 23, 2008 by MikeRosen · Leave a Comment
According to foreclosure-tracking service RealtyTrac, the foreclosure rate is falling nationwide.
Versus August, foreclosures fell by 12 percent in September 2008 as more than half of the states showed month-over-month improvement.
Most interesting in the data is that several states that led the foreclosure boom in 2007 now appear to be leading the charge out of it.
For example:
In [...]
Simple Real Estate Definitions : Amortization
October 22, 2008 by MikeRosen · Leave a Comment
In the widest definition possible, amortization (pronounced: am-ohr-tih-ZAY-shun) is the scheduled process by which a loan’s principal balance pays down to $0.
The opposite of an amortizing loan is an interest only loan for which there is no scheduled principal repayment schedule.
With respect to mortgages, amortization is what determines how much of a monthly payment goes [...]
Effective December 13, 2008, Some Conforming Mortgages Will Require Larger Downpayments To Get Approved
October 21, 2008 by MikeRosen · Leave a Comment
In an effort to limit risky borrower behavior, Fannie Mae announced a new round of mortgage guideline changes last week.
Unlike previous its previous 20-plus updates that raised income requirements and minimum credit scores (among other changes), Fannie’s latest guideline tweaks focus on the value of its underlying mortgage assets — home equity.
Effective December 13, 2008, [...]
That’s Right – Ceiling Fans Aren’t Just For The Summer
October 20, 2008 by MikeRosen · Leave a Comment
It was a chilly weekend in Northern Virginia and most parts of the country, a not-so-subtle reminder that winter is right around the corner.
Many people have installed ceiling fans in their homes so that they can reduce their energy bill during the hot summer months. What many people don’t know is that a ceiling [...]
Why Homeowners With Adjusting Adjustable Rate Mortgages May Be In For A Surprise
October 15, 2008 by MikeRosen · Leave a Comment
For homeowners with soon-to-adjust adjustable rate mortgages, the recent banking turmoil worldwide may lead to budgetary pain.
This is because most conforming ARMs made since 2003 are based on a borrowing cost called LIBOR and LIBOR is up an uncharacteristic 2 percent since September.
LIBOR stands for London Interbank Offered Rate and is the rate at which banks lend [...]
