Dirt Road Realty News

Reduce Your Refinancing Costs

Fri, 16 Jul 2010 09:00:00 EST

Reduce Your Refinancing Costs: Get to Know These Fees
Lita Epstein, AOL Real Estate Contributor
Everyone pays fees when they refinance a loan, but did you know that those fees are negotiable? When you're refinancing, pay close attention to the bottom line. Fees can add $3,000 to $6,000 to the costs of refinancing, which means it could take longer for you to get full advantage of the lower interest on your mortgage.

The key is to get to know the fees and their normal ranges. Sometimes if you're refinancing with your own lender, he can lower those fees or waive them completely. Other times you may be able to negotiate a lower rate if you use the same vendor.

For example, title search and title insurance fees,, which can range from $450 to $600, may be negotiated into a lower range if you can work with the same title insurance company. The title insurance company may be willing to update your current policy for a much lower fee. Title insurancecovers any loses related to a discrepancy in the property ownership. Since your property hasn't changed hands, a title search needed to update the insurance should not take as much time as the original title search, so sometimes you can get the fees reduced. Title insurance covers any losses related to a discrepancy in the property ownership. Since your property hasn't changed hands, a title search needed to update the insurance should not take as much time as the original title search, so sometimes you can get the fees reduced.

Other key fees you should pay close attention to and possibly negotiate include:
Application Fees These are the initial costs a lender charges to process your loan. They can range from $75 to $300 or more. You may be able to negotiate these downward, especially if your refinancing through the same lender.
Appraisal Fee These fees can range from $150 to $400. If you have enough equity in the home, sometimes your lender will be willing to work with an electronic appraisal rather than a full appraisal with someone coming to inspect the home. That can save you $100 or more.
Survey Costs These can run $125 to $300. If you're working with the same lender they may be willing to waive these fees, since they have a survey on the property from the first closing.
Lender's Attorney Review Fees These can range from $75 to $200 or more depending upon who conducts the closing for the lender. Your closing can be conducted by the lender, title insurance company, escrow company, real estate brokers or attorney. It depends upon the laws in your state. You can usually get the cheapest fees by closing using your lender or title company. Since you're not involved in a real estate sales transaction, you may be able to save money by not insisting that an attorney close the loan, but be sure you're comfortable with reading the loan documents yourself.
Prepayment Penalty Be sure the loan you have does not include a prepayment penalty. Also, be sure the new loan you're taking doesn't have one. A prepayment penalty is a fee charged if you pay your mortgage off early. Never agree to a mortgage with a prepayment penalty. It can cost you thousands of dollars to get out of the loan. Always ask if there is a prepayment penalty before signing any loan documents.
Lender's Fees These are also known as "garbage fees" and can cost you between $650 and $800. They include fees for processing, underwriting, document preparation, as well as administrative and funding fees. You may also see fees such as tax service fees, wire, and flood certification fees. You will find them on all loans, but may be able to negotiate fees lower when you get lenders into a bidding war for your business.
Mortgage Insurance If you don't have at least 20 percent equity, you will need to pay private mortgage insurance fees, which can range from 0.5 percent to 1 percent of your loan per year. If you're getting an FHA loan there's mortgage insurance fees too, as well as an upfront charge of 1.5 percent of your loan but that fee can be added to your loan balance instead of being paid in cash at closing.

Another key cost that can add thousands to a refinancing are loan origination fees and points. Generally you're best off looking for a loan with no points when refinancing. A point is equivalent to 1 percent of your loan principal. For example, for a $100,000 loan you'll pay $1,000 in cash up front for one point. But, even if you do get 0 points on a loan you'll probably still have to pay a 1 percent loan origination fee. You may be able to negotiate that to 0.5 percent or 0.75 percent with a lender looking to get your business. It can't hurt to ask.

One cost that is not negotiable at all are the taxes you'll need to pay on your loan to the state in which the property is located. Be sure you know what these costs are and add them to any cost calculations for the refinancing.
Keeping your fees low means you'll take a shorter period of time to pay off the costs of the fees through the interest you'll save. Once you're saved the full cost of the fees for your refinancing, the rest of the interest savings is gravy. You can figure out whether or not a refinance is worth it for you using this refinancing calculator.
As you compare your offers, set up a spread sheet with all your anticipated closing costs. That way as you get bids from lenders you can be sure they are giving you a full list of costs. Sometimes lenders will neglect to mention all costs to make their bids look better. Before accepting an offer, be sure the costs they did not list will not be charged at closing.

Jumbo Mortgage Rates Plunge

Mon, 12 Jul 2010 09:00:00 EST

Time to Refinance? Jumbo Mortgage Rates Plunge
Wall Street Journal
Saturday, July 10, 2010
By JESSICA SILVER–GREENBERG
Nearly two years after the credit crunch virtually froze mortgage markets, high–end borrowers are seeing some relief: Rates for "jumbo" mortgages on pricier homes are at their lowest since 2003.

Just a year ago, the average rate on a 30–year jumbo mortgage–a loan of more than $729,750 not backed by government–sponsored agencies Fannie Mae or Freddie Mac–was 6.86%, according to Greg McBride, a senior financial analyst at Bankrate.com. Now it is 5.48%–a rate that rivals those available during the height of the credit bonanza.

"In just the past couple of months, jumbo loans have really started to be competitively priced," says Keith Gumbinger of HSH Associates, a publisher of consumer–loan information.

The lower rates signal relief for homeowners looking to shed an onerous mortgage–and for the high–end housing market itself. More–affordable jumbo loans will likely whet appetites for new home purchases, helping to stabilize prices at the upper end of the market. For consumers, the lower rates will make home purchases more affordable and enable existing homeowners to trim their monthly bills by refinancing.

Applications Up
On Tuesday, Citigroup Inc.'s Citibank unit reported applications for jumbo mortgages at its retail branches were up 30% over the previous 60 days. Brad Dinsmore, who heads Citi's retail–banking business, called home loans a "top priority." Bank of America Corp., meanwhile, is now offering "competitive rates" on jumbo loans, starting in the 5% range, says Vijay Lala, product executive for Bank of America Home Loans. "We are very active in that marketplace, and we believe that jumbo loans will help lead the recovery in housing," he says.

More lenders likely will follow suit and plunge back into the market, says Guy Cecala, publisher of industry publication Inside Mortgage Finance. "It's a safe and profitable business to get into because jumbo loans are only going to borrowers with pristine credit," he says.

Competitive pricing has spurred an uptick in activity among borrowers around the country, say mortgage brokers. "In the last couple of months alone, I've seen almost a 50% rise in sales of homes that need jumbo mortgages," says Frederick Wohlfarth, president of Manhattan real–estate broker Wohlfarth & Associates.

After the financial crisis struck, the market for jumbo loans ground to a halt. Instead of selling loans into the secondary market, lenders had to hold them on their balance sheets. With housing prices on a dizzying dive, most lenders weren't willing to take the risk of keeping potentially risky new loans on their books, which crippled the market for higher–end homes. Investors headed for the safety of government–backed home loans and steered clear of the private–lender variety. "Now banks have more capital and are beginning to lend," HSH's Mr. Gumbinger says. "My ultimate question is: How long will these rates really last?"

Big Savings for Borrowers
A single percentage drop spells big savings for borrowers–and that is good news for the housing market. For example, a homeowner with a 30–year fixed–rate $800,000 mortgage at 6.86% pays $5,247 a month. If he were to refinance at 5%, his monthly payments would be reduced by $952. While financial experts advise caution, prudent borrowers also can use lower rates to refinance existing mortgages and cash out some of their equity, while still ending up with an affordable mortgage.

David Sandak, a periodontist in Weston, Conn., was saddled with an expensive adjustable–rate mortgage on his $1.3 million colonial–style home, where he lives with his two daughters after his 2008 divorce. Two months ago, with the help of his real–estate lender Luxury Mortgage Corp. in Stamford, Conn., he was able to refinance to a 10–year fixed–rate mortgage at 4.875%. He cashed out roughly $90,000, which he is using to renovate his kitchen. "I was incredibly impressed with what I was able to get," Dr. Sandak says. "I thought I was in a desperate strait, and it turns out I wasn't."

Along with favorable rates, well–heeled borrowers are finding it easier to qualify for new jumbo loans and refinance existing loans at attractive terms. Underwriting standards are still strict, with most major lenders requiring a credit score in the 700s and down payments of up to 40%, but those with good credit can find good deals.

Fernando Quinde, of Laguna Beach, Calif., is trading in his 30–year interest–only mortgage for a cheaper one. Four years ago, the 50–year old real–estate developer took out the mortgage, which had a fixed rate for 10 years, to buy his dream home, which has 180–degree views of the Pacific. The $1.5 million loan, which was issued by Countrywide Financial, required him to pay $7,500 a month–causing him more distress than he expected.With the help of his real–estate broker, Mr. Quinde is now in the process of refinancing into a new 30–year loan with a fixed rate of 4.875% for seven years. "I am working to save some money, and this enables me to do that," he says. "I am thrilled."

Village of Rhinebeck Homes Sold

Tue, 29 Jun 2010 09:00:00 EST

Village of Rhinebeck Homes Sold
Between
January 1 and June 27,2010
There were 15 homes in the Village of Rhinebeck sold in this time period.

Price point is the important take away message in this Rhinebeck Village Real Estate Picture

The average price of the Village of Rhinebeck home sold for $315,977.

There were 13 Rhinebeck Homes sold that were $500,000 or less. This is 87 per cent of the Village of Rhinebeck homes sold. This is a combined total of 10 homes sold under $300,000 – 67 percent and 6 Rhinebeck homes sold between $301,000 to $500,000.

There were 2 Village of Rhinebeck Homes sold between $501,000 and $750,250 or 13 percent of all the homes sold.

Rhinebeck Homes Sold

Mon, 28 Jun 2010 09:00:00 EST

Town of Rhinebeck Homes Sold
Between
January 1 and June 27,2010
There were 20 homes in the town of Rhinebeck sold in this time period.

Price point is the important take away message in this Rhinebeck Real Estate Picture

The average price of the Rhinebeck home sold for $384,810.

There were 16 Rhinebeck Homes sold that were $500,000 or less. This is 89 per cent of the Rhinebeck homes sold. This is a combined total of 10 homes sold under $300,000 – 64 percent and 6 Rhinebeck homes sold between $301,000 to $500,000.

There were 4 Rhinebeck Homes sold between $501,000 and $890,000 or 11 percent of all the homes sold.

Existing Home Sales Drop

Tue, 22 Jun 2010 09:00:00 EST

By JEFF BATER And DARRELL A. HUGHES
Wall Street Journal
June 22,2010
Sales of previously owned homes in the U.S. slipped in May –– after increasing two consecutive months –– despite the influence of a fading government tax credit.

Home resales decreased by 2.2%, to a 5.66 million annual rate, the National Association of Realtors said Tuesday. Inventories slipped and prices rose.

The outlook isn't looking rosy for homebuilders after the stocks have had a big speculative run, with the housing market still very much not out of the woods. Economists surveyed by Dow Jones Newswires expected existing-home sales in May to climb by 5.0%, to a rate of 6.06 million.

Although the tax credit ended April 30 for contract signings on homes, buyers have until June 30 to close. Existing-home sales data are based on closings. New-home sales data are reported at contract signings. The government reported last week May home construction tumbled, and new-home sales, due to be reported Wednesday, are forecast to plunge.

Year over year, existing-home sales rose 19.2% despite fears about making big purchases amid high U.S. unemployment. Aside from tax relief, borrowing costs are historically low. The average 30-year mortgage rate was 4.89% in May, down from 5.10% in April, according to Freddie Mac.

Last week, the Senate voted to add an extension of the closing period during which home buyers can still qualify for a tax credit. The period would be extended from June 30 to Sept. 30 on contracts entered into before the end of April under the change. The legislation, however, remains under consideration by Congress.

"However, approximately 180,000 home buyers who signed a contract in good faith to receive the tax credit may not be able to finalize by the end of June due to delays in the mortgage process, particularly for short sales," said NAR economist Lawrence Yun said.

Regionally, May sales decreased 18.3% in the Northeast and were unchanged in the Midwest. Sales rose 0.5% in the South and 4.9 in the West.

Home Buyer Tax Credit

Fri, 18 Jun 2010 09:00:00 EST

NAEBANational Legislative Update
Submitted by Kimberly Kahl,CAE,NAEBA Executive Director
Where to begin

I had originally thought this article would be about my trip to Washington, DC in early May so could let the members know what all is going on with our efforts to get a National Agency Disclosure form passed, but there are other things going on as well. Let's start with those.

Home Buyer Tax Credit
Legislation introduced by Senator Harry Reid that would extend the closing deadline for the Home Buyer Tax Credit from June 30 to September 30 passed in the Senate. Based on information provided by the National Association of Realtors, home buyers have been unable to secure a closing date by June 30 either due to delays as a result of the amount of applications or due the delays that come with short sales and foreclosures. It is hoped that this legislation, if passed, will allow those home buyers to take advantage of the credit in spite of the delays. Unfortunately, the bill which was amended to include this legislation appears to be facing an uphill battle. According to our lobbying firm, "the bill is being stalled by Sen. Ben Nelson and Sen. Scott Brown, who are concerned about the cost which was already reduced from $140 billion to $118 billion yesterday. Democrats are still working on finding the two Republican votes they need to proceed."

National Agency Disclosure
As I mentioned earlier, I traveled to Washington, DC to do some lobbying on NAEBA's behalf. I met with numerous Congressional offices and Past President John Sullivan joined me on a visit to his Congresswoman's office. We are hearing a lot of positive things about National Agency Disclosure; mainly that it sounds like a good idea and that it makes sense. Unfortunately, to get anything done, we need to be able to show damage to consumers, which is easier said than done. We have a few stories, but not enough. Because of this and on the advice of our lobbying firm, we are changing strategy somewhat. We are now asking for a repeat of the FTC study that was completed in 1983.

The FTC through this study came to the conclusion that "The selection of a "buyer" broker is a very large purchasing decision. Despite the magnitude of this decision, many consumers are unaware of basic aspects of the decision, including that the broker fee is negotiable, and that the brokers' services may not be as buyers believe them to be. The state of consumer information relating to these important terms of the transaction provides some evidence of an important deficiency in the performance of the information function of the real estate brokerage industry." It is our belief that an update of this study will show that this has remained unchanged in spite of or in some cases because of changes in state laws. Then, we will have the evidence needed to support a National Agency Disclosure.

Getting a new study completed isn't a slam dunk, but we do have several promising avenues we are pursuing. The first is to get it included in the Financial Services bill which has passed both the House and the Senate and is now in Conference Committee. We have sent the committee a letter asking that language for the study be added to the final version of the bill. This is a long shot, but we are asking. A more likely path will be to get language added to an appropriations bill. We have several Congressional offices who we believe would be willing to take the lead on that. This will take longer, however, as no bills are currently planned, especially with elections coming up. Another option may be to draft a letter requesting an update of the study that is signed by numerous members of Congress and yet another option may be to get another agency other than FTC to repeat the study.

We received this from our lobbying firm this morning
Update on Home Buyer Tax Credit Closing Extension

"A cloture vote failed last night 56 to40 with Sen. Ben Nelson and Sen. Lieberman voted against it, and Sen. Byrd was absent. Democrats are meeting today to come up with a new strategy, but at this point they are unsure if the debate will even continue next week. However, Sen. Baucus was quoted as saying, "The bottom line is that we're going to keep trying because that's what the American people want us to do."

Mortgage Interest Rates

Tue, 25 May 2010 09:00:00 EST

Today's Money with Meredith Vieira and Jean Chatzky
May 25,2010
Mortgage interest rates are at 50 year lows and could drop even lower ,
Today Financial Editor Jean Chatzky discusses the topic –
Should You Refinance Mortgage.

Home Sales

Tue, 25 May 2010 09:00:00 EST

Today – MSNBC–
Realty Check Segments
May 25,2010
April Exiting Home Sales 7.5%
Housing Artifical High Home Sale
Existing Home Sales Rise

Mortgage Rates Decline

Mon, 24 May 2010 09:00:00 EST

Home Buyers Get Surprise Boost
From Europe Crisis as Loans Drop to Below 5%
By NICK TIMIRAOS

The financial turmoil in Europe is providing an unexpected windfall for American home buyers, as international money seeking a safe haven is flowing into the U.S., pushing domestic mortgage rates to the lowest levels of the year and back near 50–year lows. Falling mortgage rates could lift the U.S. housing market. The housing industry had been bracing for months for a period of rising mortgage rates, triggered by the end of the Federal Reserve's $1.25 trillion mortgage–securities purchase program. Conventional wisdom held that mortgage rates would rise as the Fed pulled back from propping up the market.Instead, many in the industry now say rates could drift as low as 4.5% this summer from 4.86% now, instead of rising to 6% as some economists projected, making for significantly lower payments for Americans buying homes or refinancing their mortgages.

Refinance business "exploded" last week, says Jeff Lazerson, chief executive of Mortgage Grader, a brokerage in Laguna Niguel, Calif. "It's schizophrenic. We all had this expectation of higher interest rates and no more refinances." He says he helped a borrower lock in a 30–year loan with a 4.25% fixed rate last week, the lowest in his 24 years in the business.

Rates on 30–year mortgages averaged 4.84% last week, according to a survey by mortgage–insurance titan Freddie Mac. Rates were quoted late Friday at 4.86%, the lowest since December 2009, according to a survey by financial publisher HSH Associates, and down from a high of 5.27% for the week ended April 9. Rates on 15–year mortgages averaged 4.24% last week –the lowest since Freddie began its survey in 1991.Economists largely attribute the decline in mortgage rates to the European debt crisis and new concerns about the global economy, which unleashed a massive wave of cash into U.S. bonds from investors around the world.

This buying pushed down yields on Treasury bonds. Because mortgage rates are closely pegged to yields on 10–year Treasury notes, which fell to 3.2% Friday, the decline in Treasurys pulled down mortgage yields. Typically, mortgage yields remain around 1.5 percentage points above yields on 10–year Treasury notes.Falling mortgage rates can give a powerful lift to the housing market. A general rule of thumb holds that every one percentage point decline in mortgage rates is the equivalent of roughly a 10% reduction in the home price for the buyer. So, if the current rates hold, say economists, that could help stabilize prices and allow current homeowners to sell existing homes without substantial price cuts.

It isn't clear how much home–buying the lower rates will spur. Demand had fallen in recent weeks after buyers raced to close sales ahead of last month's expiration of an $8,000 federal tax credit for home purchases. Applications for new–purchase loans hit a 13–year low in the week ending May 14, according to the Mortgage Bankers Association. Borrowers do face roadblocks. Underwriting standards are their strictest in a decade, and record numbers of borrowers are "underwater," owing more to the bank than their homes are worth. That has excluded large swaths of borrowers from getting loans at the new lower rates.Still, lower rates could widen the pool of people who qualify for a mortgage, while others may find they qualify for a slightly larger loan. "They can buy the place with the extra bedroom or the swimming pool," says Jay Brinkmann, chief economist at the Mortgage Bankers Association.

Falling rates have encouraged some Americans to consider refinancing their existing mortgages to save money. A one–percentage–point decline in mortgage rates can cut $250 off the monthly payment on a $400,000 30–year fixed–rate mortgage, giving consumers cash they can use to spend.Richard Hunsinger plans to refinance two loans on his Potomac, Md., home into a new 15–year mortgage this week with a 4.37% rate. The 55–year–old dentist is worried that interest rates will eventually rise sharply, boosting the payment on his home–equity line of credit. His first mortgage, also a 15–year loan, currently has a fixed rate of 5.25%. And while the rate on his $240,000 home–equity loan is just 3.25%, it has risen as high as 8% in the past.Rates "can't stay low forever," says Dr. Hunsinger. If they go up over the next year, "this will look like a really bright decision."

Now, more private investors are coming into the market for loans, offering better prices for securities containing mortgages with low rates than they were one year ago. That could lead banks and brokers to cut upfront origination fees, and borrowers who are able to refinance could find it cheaper to do so than last year. "I'm calling people back and saying, 'Now it's worth it,'" says Michael Menatian, a mortgage banker in West Hartford, Conn.

Prabha Natarajan contributed to this article
Read Complete Article

Home Mortgage Deduction

Fri, 21 May 2010 09:00:00 EST

Home Mortgage Interest Deduction In Play
Published: Friday, 14 May 2010
By: Diana Olick
CNBC Real Estate Reporter

The Administration isn't officially considering it, maybe not "actively" considering it, not even taking a side on it per se.According to "staff" it was just a "musing." At a small conclave of reporters, no cameras allowed, the Secretary of Housing and Urban Development was reportedly asked about the mortgage interest deduction, the importance of home ownership and the seeming shift of focus from owning to renting.That last bit is huge in itself, as pretty much every President dating back to Herbert Hoover and the Home-Loan Discount Banks pushed people to own own own.

Herbert Hoover, Dec. 8, 1931
"I recommend the establishment of a system of home-loan discount banks as the necessary companion in our financial structure of the Federal Reserve Banks and our Federal Land Banks. Such action will relieve present distressing pressures against home and farm property owners."

Ronald Reagan, Jan. 25, 1984
"Tonight, we can report and be proud of one of the best recoveries in decades. Send away the handwringers and the doubting Thomases. Hope is reborn for couples dreaming of owning homes and for risktakers with vision to create tomorrow's opportunities."

Some argue that it was this push to the "ownership society" by President's Clinton and Bush that caused at least some of the housing crisis, and at the very least pushed Fannie Mae and Freddie Mac to push the envelope of responsible lending.

Secretary Donovan reportedly offered that modifying the deduction could result in deficit reduction and, as the Wall Street Journal notes, "rebalancing federal housing policy." The mortgage interest deduction, which appears on about 41 million U.S. tax returns, is a huge political hot button, and the more questions the Secretary got, the quicker he tried to get out of the conversation. No, there is "no official position" on the deduction.

But the question didn't come from the ether. A couple of economists from Harvard and Wharton suggested last week that the housing bubble was not caused entirely by faulty mortgage lending, but perhaps more by housing policy going back decades. Their conclusion was to focus on modifying the mortgage deduction.According to the Congressional Joint Committee on Taxation, between 2009 and 2013, the federal government will lose roughly $600 billion from the home mortgage interest deduction.

Home Buyers Advantage Using a Buyer's Agent

Wed, 19 May 2010 09:00:00 EST

Dirt Road Realty is the first and only Exclusive Buyer’s Real Estate Agency in Dutchess County where you can have a “personal shopper” to help you find your perfect property – at not extra cost. How is this possible? A whole new Evolution in the real estate market is taking place. With a traditional real estate broker, the seller is the top priority at all times. With Dirt Road Realty , Harvey Brown is an Exclusive Buyer Agent who is 100% committed to the BUYER alone.

Traditionally, the listing agent has a home to sell, advertises a lovely property that catches the eye of a buyer and traditional process starts - but with the advantage strongly on the side of the seller. Today, an evolution has taken place in the real estate market that is removing the strong, one-sided advantage. Harvey has established Dirt Road Realty, an Exclusive Buyer’s Agency, to bring this evolutionary change to the buyer. Now as a savvy buyer, you can see the lovely home, but instead of working with the seller’s agent, you choose to become empowered and choose an agent who is ONLY committed to your best interest every step of the way.

When the buyer chooses to work with an Exclusive Buyer’s Agent, the traditional cycle is broken giving the buyer a chance to have full representation.

Home Buyers Advantage

Mon, 10 May 2010 09:00:00 EST

Real Estate Market is Coming Up Roses but Buyers Should Beware of Thorns. The end of winter signals the beginning of the busy real estate season and the National Association of Exclusive Buyer Agents (NAEBA) is renewing an effort to educate buyers about the various choices for agent representation in the home buying process. While most states in the United States require agencies to disclose relationships, buyers are not always clear about what those relationships mean.

"We believe it is important that home buyers understand their options so they will make the best choice when selecting an agent," commented Benjamin Clark, 2010 President of NAEBA. "It is our mission to educate buyers on the advantages of using Exclusive Buyer Agencies and we want buyers to have that information before they sign a binding agreement with a real estate brokerage."

A "buyer's agent" is not always an Exclusive Buyer Agent (EBA). Agencies may have singular relationships, representing buyers or sellers only or they can be a dual agent that represents both sellers and buyers at the same time. Within a dual agency brokerage, there may be "buyer agents" but this differs from NAEBAmember companies where both company and agents exclusively represent buyers and never take listings. In fact dual agents and dual agency companies may represent buyer and seller in the same transaction, with written consent.

Michigan resident and recent home buyer, Darrell Perry, learned one of the potential pitfalls of using a dual agency. "Our first agent showed us homes in areas we did not want to live and that offered none of the features we required," commented Perry. "He told us there were no houses in our price range in our preferred area. We later discovered he only showed us homes listed with his agency. We thought he was working for our best interests."

Consumers who use an EBA can be certain that their partnership will be maintained throughout the purchase process. "We weren't very familiar with the concept of an Exclusive Buyer's Agent at the outset, but during the home buying process learned how valuable it can be to have our Realtor looking out solely for our interests. The seller of the home we purchased commented that she wished that she had someone like our EBA on her side when she had bought the home," said Utah home buyers, Jonathan and Laura Tanner.

Home buyers can learn more about Exclusive Buyer Agency and locate an Exclusive Buyer Agent at
National Association of Exclusive Buyer Agents

The Perfect Time To Buy A Home

Tue, 27 Apr 2010 09:00:00 EST

Today's Real Estate with Matt Laurer and Jean Chatzky
April 27,2010
With low prices and attractive mortgage rates,Today Financial Editor Jean Chatzky discusses why this spring may be the perfect time to buy a home.
Housing Market in the bloom this spring?

Home Trends for 2010

Mon, 26 Apr 2010 09:00:00 EST

This article first appeared in Today's Buyer's Rep
vol.19,number 4,April 2010
a publication of the Real Estate Buyer's Agent Council
Home Trends in 2010

Consumers' Most Sought–after Features

Spring is a season for fresh starts. A time to take a deep breath and ponder new possibilities. For many consumers, spring has also traditionally been a time to move forward on plans to purchase a first home, or upgrade to a larger space. Even as people around the country eagerly anticipate warmer and sunnier days, it's clear that this spring's real estate market will continue to be tempered by economic uncertainties. Concerns about job security may be preventing many consumers from pulling the housing trigger, but it certainly hasn't stopped them from dreaming about a future home.

Those dreams are closely examined by builders, architects and designers of home spaces. To survive the current economic downturn, these professionalsmust be highly attuned to which home features and preferences will prompt consumers to open their wallets. More than ever, staying in business requiresappealing, economical housing solutions.

Buyer's representatives, on the other hand, must listen to buyer–clients one at a time–understanding individual preferences and helping buyers find the home of their dreams. That said, it's also helpful to share your knowledge of larger consumer trends with your clients. After all, most buyers want to make sure that the home they purchase now will hold strong appeal to a future buyer once it's time to sell.

With this in mind,Today's Buyer's Rep is examining the latest research and opinions on housing trends. Fewer, Smaller, Less Expensive are the buzz words.

To understand today's housing trends,it's helpful to first review some recent facts about the residential construction industry. Housing starts began declining in 2006 and have yet to show any significant rebound. Among the new homes that have been built, at least through the first half of 2009, the U.S. Census Bureau confirms that no matter how you look at the data, new homes are definitely smaller.

Implications for Home Design Even though today's homes are smaller, builders, architects and designers insist that they don't necessarily have to feel smaller. Indeed, some consumers actually prefer a smaller home,complaining that some houses had grown to excessive proportions. Susan Slotkis, a New York City – based interior designer and educator says she has witnessed a backlash against the McMansion craze. "Just as driving aHummer carries a negative connotation in some circles, living in a space–wasting, energy–guzzling home is not desirable,"explains Slotkis. "Homeowners are still interested in the 'wow' factor, but there are other ways to achieve it."

10 Most Likely Featuresthat builders will includein 2010

Walk–in closetin master bedroom
Laundry Room
Insulated Front Door
Great Room
Low–E Windows
Linen Closet
ProgrammableThermostat
Energy EfficientAppliances and Lighting
Separate Shower & Tubin master bedroom
9–Foot Ceilingsor higher on 1st floor

"In today's environment, builders are very focused on giving homebuyers more bang for their buck," says Stephen Melman, NAHB Director of Economic Services. "There's a prime emphasis on good design that helps homes feel larger by raising overall ceiling height, adding more light through windows, and using space more efficiently." Whole– House Efficiency NAHB research finds that "efficiency" has become a buzzword for virtually every aspect of new homes. It has meant the death of the two –story family room atrium, for example, which Melman concedes "may have gotten too large and could easily feel a little noisy and lacking in privacy." Instead, the trend is now towards one–story multi–functional space. Open floor plans are still desirable, but with a scaled–back approach. Kitchens, eating areas and family rooms are open and connected, catering to busy families that want optimal useableliving space from their home. Food prep,entertaining, homework and relaxing can all be accommodated in a cohesivelayout that relies on strategically–placed architectural details or area rugs to define where one area begins and another ends.Storage elements, including laundry spaces and mini mud rooms help bring much–desired order to life at home. And the quest for efficient homesdoesn't stop with floor plans. Curbing energy consumption is also a high priority among builders, with an insulated frontdoor, low–e windows, programmable thermostats, and energy–efficient appliances and lighting all making their top–ten list.

Still in Demand– Master Bedroom Suites

Consumers are reluctant to give up full-featured master bedrooms. Builders have signaled their intentions to continue meeting this demandby including walk–in closets and a separate shower and tub in new master bedroom suites. "You probably won't see multiple shower heads," says Melman."But most consumers still want the master bath to feel like a small oasis, providing features that are a significant step above other bathrooms inthe home." Also count on walk–in closets to remain. In fact, they are the number one feature cited by homebuilders for inclusion innew construction this year.

What's NOT on the list? If new homes will be built with an eye towards affordability and efficiency, which home features will not be included?Builders say that an outdoor kitchen is first to go. Other features that they cite as being least likely to include in 2010 are an outdoor fireplace, a sunroom, a butler's pantry, and a media room.

Source for the article is January 2010 National Association of Home Builders Survey of Builders.

Home Trends for 2010 for the Over 55 Market

Mon, 26 Apr 2010 09:00:00 EST

This part two of Home Trends first appeared in Today's Buyer's Rep
vol.19,number 4,April 2010
a publication of the Real Estate Buyer's Agent Council
Home Trends in 2010 for the Over –55 Market

Aging in Place Perhaps the most interesting area of new home trends centers on the over–55 market. Aging Baby Boomers certainly hold significant consumer buying power. And while builders are very interested in catering to Boomers, to a large extent, this segment remains underserved. The reasons are complex. Slotkis, who also works with over–55 clients residing in active communities in Florida, believes that builders still have a long way to go."It's so much more economical to include aging–in–place features during construction, but it seems that many builders are concerned that items like bathroom grab bars could be viewed as a turn–off to active 55–year–olds who don't want to concede that such features could come in handy later." NAHB research confirms that consumer preferences are distinctly different for over–55 buyers. For example, nearly 70 percent of 55 plus buyers say they want the master bedroom on the first floor,compared to just 16 percent of all buyers. Smaller, space–efficient homes are especially important to these near retirement homebuyers.

And their most important design features? At the top of the list: washer/dryer in the unit, storage space, and windows that open easily. Homebuyer AttitudesRegardless of age, and whether buying a new home or remodeling an existing property, consumers remain cost conscious. But there are important subtleties in their buying behaviors centered on affordability."When deciding whether to upgrade various construction materials and appliances, for example, consumers are now very focused on evaluating recovery costs," says Melman."They're willing to pay a little more if they see a reasonable payback."In terms of home remodeling projects,Melman says that consumers are still actively engaging in maintenance and repairs, but"large kitchen overhauls are much less frequent."Jamie Gibbs, an interior designer with offices in New York and Indianapolis sees back–to–basics and a value orientation as important consumer behaviors."It's not about pinching pennies," explains Gibbs."Instead, I've found that consumers have become savvier. They don't want to buy into trends. When furnishing their homes,they would rather invest in one quality item than several cheap pieces that won't hold up."

Home builders seem to agree. By showing consumers that a smaller home can also be a better home, they are addressing buyers' value orientation with efficient, affordable and highly live–able homes. It's a trend that will likely endure for years to come.

Source is the January 2010 National Association of Home Builders Survey of Builders (NAHB)
Most Important Design Features For 55 Plus Buyers

10 Most Likely Featuresthat builders will includein 2010

Washer&Dryer in the Unit —90%
Storage Space —84%
Windows that Open Easily —81%
Garage Door Opener —73%
Easy–to–use Thermostat—73%
Master Bedroom on First Floor —71%
Private Patio —67%
Porch —66%
Attached Garage —65%
Bigger Bathrooms —64%

Items like bathroom grab bars could be viewed as a turn–off to active 55–year–olds who don't want to concede that such features could come in handy later." NAHB research confirms that consumer preferences are distinctly different for over–55 buyers. For example, nearly 70 percent of 55 plus buyers say they want the master bedroom on the first floor, compared to just 16 percent of all buyers. Smaller, space–efficient homes are especially important to these nearretirement homebuyers. And their most important design features? At the top of the list: washer–dryer in the unit, storage space, and windows that open easily. Homebuyer Attitudes Regardless of age, and whether buying a new home or remodeling an existing property, consumers remain costconscious.

But there are important subtleties in their buying behaviors centered on affordability."When deciding whether to upgrade various constructionmaterials and appliances, for example, consumers are now very focused on evaluating recovery costs," says Melman. "They're willing to pay a littlemore if they see a reasonable payback." In terms of home remodeling projects, Melman says that consumers are still actively engaging in maintenance andrepairs, but"large kitchen overhauls are much less frequent." Jamie Gibbs, an interior designer with offices in New York and Indianapolis seesback–to–basics and a value orientation as important consumer behaviors."It's not about pinching pennies," explains Gibbs."Instead, I've found that consumers have become savvier. They don't want to buy into trends. When furnishing their homes, they would rather invest in one qualityitem than several cheap pieces that won't hold up." Home builders seem to agree. By showing consumers that a smaller home can also be a better home, they are addressing buyers' value orientation with efficient, affordable and highly live–able homes. It's a trend that will likely endure for yearsto come.

Even Good Housing Numbers Are Not Adding Up Right

Fri, 23 Apr 2010 09:00:00 EST

By Diana Olick Reporter for CNBC Real Estate

So first time buyers are juicing the housing market once again, accounting for 44 percent of all sales in March. While the percentage is high, the actual volume is not nearly what it was last fall, when the tax credit for them was originally set to expire.

And while investors are still in there at a 19 percent share of buyers, my sources on the ground say they are losing ground, especially in California, where the inventory of cheap homes is very low. Investors have been carrying much of this real estate market of late, eating up inventory and stabilizing home prices in California and Las Vegas. But there are a limited number of investors out there, since they have to be all cash in today's impossible mortgage market, and then the issue is what are the investors doing with the properties. Are they renting or flipping?

Today's existing home sales report from the National Association of Realtors was encouraging in sales and prices, but not so much in inventories. The Realtors reported a boost in raw inventory, although the quicker sales pace pushed the month's supply number lower. But the Realtors don't count the shadow inventory of foreclosed properties, which we know are out there in increasing numbers right now. Also not mentioned was the FHA increasing its upfront premium April 5. Some analysts believe that people were rushing to get in on FHA loans, and that, along with the tax credit may be artificially raising the numbers now.

But then again, what's artificial in today's housing market? All the numbers are so deranged right now. Even the exalted S&P Case Shiller Home Price Index folks who had been pushed to report monthly price numbers with seasonal adjustments, even though year over year is far more accurate put out a note this week saying that even their monthly seasonal adjustments were no good. After reviewing the data, the S&P Case Shiller Home Price Index Committee believes that for the present time, the unadjusted series is a more reliable indicator of U.S. housing trends than the seasonally adjusted series. Therefore, the committee suggests that reports "should focus on the year–over–year changes in U.S. home prices where seasonal shifts are not a factor, and if monthly changes are considered, that the unadjusted series should be used." The trouble is that government stimulus coupled with an unusual mix of buyers in the marketplace are skewing all comparisons. Home sales are increasing on both the low and the higher end of the market. I'm just not sure what exactly I'm supposed to compare today's housing market to.

Thinking About Refinancing

Tue, 20 Apr 2010 09:00:00 EST

Thinking About Refinancing You May Want to Get Off the Fence
By JENNIFER OLDHAM for Wallet Pop on April 15,2010

With mortgage rates bouncing around like a child's plastic yo–yo, pulled down by government intervention in the housing market and yanked back up again by a strengthening economy, experts say now is the moment for homeowners to refinance. Homeowners have been spoiled over the last decade with historically low mortgage rates. But that's about to change, now that the market is believed to be bottoming out. "We're probably at the trough, or not far from the trough, in terms of rates," says Sam Khater, a senior economist with First American CoreLogic. "Any time rates are in the 5% range they are very low relative to history. We forget that the longer term average for a 30-year fixed is 7%."

Homeowners With Adjustable Rate Mortgages

Among the homeowners who should seriously consider refinancing now are folks who are in the unusual situation of holding an exotic adjustable-rate mortgage or ARM, that is currently clocking in at rates as low as 3%. Another group who should act now: homeowners with option ARMS that are due to adjust in the next two years, says Greg McBride, a senior financial analyst at Bankrate.com. While refinancing now might seem counterintuitive, it can help these homeowners from adjusting to much higher rates next year. "Doing that for many borrowers will mean trading away a very low rate for a higher rate right now," McBride says. "A lot of people, they will say 'Wait a minute, why trade in a rate at 3.5% for one at 5.5%?' Well, you're trading away a 3.5% to lock in at a 5.5%, so you're 3.5% doesn't turn into a 7.5% a few years from now which is very possible." It's difficult to say how many borrowers have adjustable rate mortgages like these, although statistics show that the dollar amount of these loans that are scheduled to reset over the next few years is as high as $20 billion a month, says McBride. Some buyers understand the high stakes in the mortgage interest rate guessing game. David Shaw, the chief executive officer of Quantum Health, recently refinanced the interest only mortgage on his three-bedroom, two bath, 1,577 square foot home near Venice Beach. Calif. to avoid paying higher rates when it adjusted a few years from now. "I had a five-year-interest-only" loan, Shaw says, "and thought that since rates are very low now, but would be going up soon, I'd be better off with a 30-year fixed. I got it at 4.75%." Like Shaw, many folks are already looking to cash in on historic low rates, with mortgage purchase applications increasing last month to their highest level since last Halloween. Many homebuyers are rushing to close loans before the expiration of the government's homebuyer tax credit program this month. But what the government giveth it also taketh away. As rates ticked upward in early April, the federal government ended a program to buy loans from mortgage giants Freddie Mac and Fannie Mae, according to a weekly survey by the Mortgage Bankers Association. This massive infusion of cash into the market helped drive rates to their lowest level in three decades. Now that the cash is drying up rates are expected to rise.

Homeowners with Underwater Loans

Another group that should refinance sooner rather than later are homeowners with "underwater" mortgages that owe more on the loan than the home is worth.Ideal candidates for refinancing are those who plan to stay in their homes for at least two to four years and who have "reasonable equity" of around 10%, together with an interest rate north of 6.6%, said Keith Gumbinger, a vice president at HSH Associates. An expansion of the federal government's Home Affordable Modification Program announced last month allows investors to refinance these borrowers into loans backed by the Federal Housing Administration. There are several steps homeowners should take if they're considering refinancing. If prices in your area have already tumbled and there's more than a six-month supply of homes on the market, analysts say it's not worth waiting for even lower rates because lagging values are likely to drive down your equity further. Bankrate.com offers a search engine to uncover the lowest interest rates in your area and what terms are required to qualify. The web site also has calculators that allow homeowners to figure out how making the change from an adjustable to a fixed rate mortgage would impact their monthly payment.Even those who are underwater and there are many, with one in four of the nation's homeowners currently owing more on their home than it's worth may qualify for a refinancing by taking advantage of the federal government's loan modification program. Even those who are underwater--and there are many, with one in four of the nation's homeowners currently owing more on their home than it's worth may qualify for a refinancing by taking advantage of the federal government's loan modification program. To find out if you may qualify, visit MakingHomeAffordable.gov.

Why it's Time to Refinance Now

Many homeowners have already jumped on the refinancing bandwagon. Over three million of them took advantage of federal programs--and the lowest average annual mortgage rates since reliable tracking began in 1971 in 2009. Borrowers who have refinanced have typically saved $108 a month in mortgage payments, according to a report by First American CoreLogic. Kevin Wolf, the public relations rep says he didn't start the refinancing process sooner because he was concerned his home would appraise for less last year and he wanted to wait to finalize this year's taxes. He hopes to save at least $500 a month on his mortgage which will come in handy with two kids in school starting this fall. "Priority number one is to lower monthly payments," Wolf said. "With rates low and likely to climb, I figure now is the time to re fi."

Today's Real Estate

Thu, 15 Apr 2010 09:00:00 EST

Today's Real Estate with Matt Laurer and Barbara Corcoran
Managing Your Mortgage

High End Housing Sales Are Making a Surprising Comeback

Tue, 13 Apr 2010 09:00:00 EST

CNBC.com | 01 Apr 2010 | 11:38 AM ET
High-End Housing Sales Are Making a Surprising Comeback
Published: Thursday, 1 Apr 2010 | 11:38 AM ET
By: Mark Koba - Senior Editor

Anyone looking for a rebound in the housing market might want to look up-up in price that is. Sales of high end housing are returning with a near vengeance after two years of double digit declines. "We're seeing a revival in the high-end housing market," says Lawrence Yun, chief economist at the National Association of Realtors (NAR). "It was so depressed, particularly last year, but it's really improved. There's much greater sales activity on upper end homes now." While the rest of the housing market is still in the doldrums, high-end housing is one of the few bright spots in what many predict will be a dismal spring season. In February this year, sales for homes priced at $1 million or more increased 38 percent nationwide from a year ago, according to the NAR. The Northeast is up 49 percent alone, while the West is up nearly 35 percent.

What's creating the high end 'boom' is a trifecta of lower interest rates, bank lending and consumer confidence. "Rates are down for jumbo loans," says David Adamo, ceo of Luxury Mortgage, a mortgage banking firm based in Stamford, Connecticut. "Banks are seeing benefits in making these types of loans and are doing more re-financing now. I also think more people feel confident in the economy at the higher incomes." Rates for jumbo loans-loans for mortgages that exceed $417,000-have shown a major decline in recent weeks. A 30 year fixed jumbo is currently at 5.58 percent for a million dollar loan, while last year at this time it was almost 7 percent. Unlike conventional rates which are tied to treasurys, jumbo rates are a specialty product with rates set primarily by lenders.

"Banks are doing jumbo loans now at lower rates because they see it as a secure way to make a profit these days," says Bob Walters, chief economist at QuickenLoans.com. "Jumbo rates are always higher than conventional loans, but banks feel like they can have the lower rates now and still make money from those in the jumbo loan market as more home buyers take loans." While banks are lending more these days, that hasn't stopped them from being extra cautious over who gets their money. Much like conventional loans, lenders want buyers to give a full bottom line when it comes to personal finances. "Underwriting (assessing a buyer's eligibility for a loan) is still very tough," says Steve Habetz, president of Threshold Mortgage, a lending firm in Westport, Connecticut. "I had one buyer, who had enough money for a large downpayment, go through the loan process and he had to justify why his dividends were down one year while his investments were up. He got the loan but he had to go through hoops to get it."

"Jobs are on the line for these underwriters," adds Mary Cassidy, a licensed associate broker at Bronxville Ley Real Estate in Westchester County, New York. "I had one bank officer tell me that if everything wasn't just perfect on the loan application, someone could lose their job." While interest rates for the bigger loans are falling, consumer confidence seems to be rising for those in the higher income brackets. It disappeared as the economy slumped-at least when it came to housing. "People are not as uptight as they were a year ago," says Habetz. "It seems as if they are more comfortable in thinking the high end housing market is not collapsing. Home values have stabilized and it's been a matter of following the leader. One person sees others buy or sell and they join in. That's been happening." And as Wall Street tickers move higher, so too do the number of potential buyers. "Sure, with bonuses and stocks going up lately, that's helped the upper housing market especially where I am," says Cassidy. "However, we're also seeing non-Wall Street types coming in as well." However good the sales numbers may be, there are signs that high-end housing is not completely out of the woods yet.

Conventional rates are already making slight upticks as the Fed discontinued its mortgage backed securities buyback program-which helped keep rates lower. Banks could raise rates for jumbo loans if they feel the market weakens and housing prices decline even more. "There's improvement for sure but you still have to have a lot of money for a down payment to get a loan and it's not clear that prices have reached bottom," says Quicken's Walters. "Interest rate increases could slow things down. We probably need more time to tell if high end housing is really back." More time is needed to say if any part of the housing market is really in a recovery. Sales for homes worth $500,000 or less are still in flux across the country as struggles grow over increasing foreclosures from job losses-and a slower but continuing fall in housing prices. But for those who contend a high end housing rebound is here, expectations are that the upside will work its way down. "I think the impact of high end housing will be broader for the whole economy and help at all levels," says Luxury Mortgage's Adamo. "Banks will benefit because they'll be seeing more cash and putting it to use and they'll be making more loans. Home buyers will need products and services so they'll be spending money. Call it trickle down, if you will, but I see it happening."

For complete article:High-End Housing Sales Are Making a Surprising Comeback

Dutchess County Home Sales 2009-2001

Wed, 24 Mar 2010 09:00:00 EST

Dutchess County Home Sales
2009-2001

Year	Closed Sales	Yr % Chg	Aver.Selling Price	Yr % Chg	Sales Volume	Yr % Chg
2009	1484	+8.2	315,396	-10.3	468,047,809	-3.0
2008	1371	-22.6	351,780	-12.7	482,290,658	-32.4
2007	1772	-12.2	402,844	-1.6	713,839,579	-13.6
2006	2018	-9.0	409,264	+3.2	825,894,943	-6.1
2005	2218	-2.6	396,678	+13.8	879,831,853	+10.9
2004	2277	+14.5	348,572	+16.0	793,697,414	+32.8
2003	1988	+6.8	300,547	+14.9	597,486,603	+22.7
2002	1862	-0.5	261,469	+16.1	486,855,535	+15.1
2001	1871	NA	225,217	NA	421,380,761	NA

Year 2005-Turning Point
Year 2008-Most % Change

Source: Mid-Hudson Multiple Listing Service Inc (MHMLS) These figures for single family detached homes do not represent the total real estate sales in Dutchess County. They do reflect the sales activity of the MHMLS, which comprises the largest sales volume sampling.

Dirt Road Realty News

Reduce Your Refinancing Costs

Jumbo Mortgage Rates Plunge

Village of Rhinebeck Homes Sold

Rhinebeck Homes Sold

Existing Home Sales Drop

Home Buyer Tax Credit

Mortgage Interest Rates

Home Sales

Mortgage Rates Decline

Home Mortgage Deduction

Home Buyers Advantage Using a Buyer's Agent

Home Buyers Advantage

The Perfect Time To Buy A Home

Home Trends for 2010

10 Most Likely Featuresthat builders will includein 2010

Home Trends for 2010 for the Over 55 Market

10 Most Likely Featuresthat builders will includein 2010

Even Good Housing Numbers Are Not Adding Up Right

Thinking About Refinancing

Today's Real Estate

High End Housing Sales Are Making a Surprising Comeback

Dutchess County Home Sales 2009-2001

Dutchess County Home Sales2009-2001

Dutchess County Home Sales
2009-2001