Wednesday, January 30, 2013

Meet Our Staff : Karen Seghetti

Karen Seghetti

CA DRE # 00886964/01215943
NMLS # 241412/1850

479 Mason St. Suite 109
Vacaville, CA 95688-4505

Phone:  707-455-7070  ext. 309
Fax: 707-455-8337

Sunday, January 27, 2013

Warrior Weekender – January 25, 2013

Wow a week without scandal, athlete doping, government fighting (beyond the normal nonsense), stock market craziness or anything else significant.  I don’t know what to do with myself.  I might actually have to write about economic reports this week because there was nothing else to distract me.

Existing home sales for the month of December were unexpectedly lower.  Although lower, they were only down by 1%.  The good news is that existing sales are up 12.8% from a year ago.  In addition, home prices are rising which is a direct reflection of the fact that housing inventory is lower than anyone every anticipated it would be at this point.  According to the National Association of Realtors inventory of existing homes is down to 4.4 months where as in November it was 4.8 months.

The big question being asked is what happened to the millions of homes in shadow inventory that the banks have been waiting for the right time to sell?

It appears that because of all of the mandates, laws and rules banks must follow in regard to foreclosure and loan modifications, the banks have been working closer than ever with homeowners to assist them by either modifying their loan or being more cooperative with short sales  If more homeowners receive assistance than there are less homes for the banks to sell.

Mortgage rates have remained stable and the Mortgage Bankers Association reported that, just as the prior week, purchase and refinances applications have increased.  Purchase apps are up 3% and refinances increased 8%.

The latest FHFA price index is up 0.6 percent for the month of November. This is the strongest rise since June. The Mountain region led all areas in increases by surging 2.1 percent.  Home prices are 5.6% higher than they were a year ago and have reached the highest level since 2006.  Home prices are expected to continue a strong rise throughout 2013 as long inventory continues to remain scarce.

The employment picture continues its pattern of improvement.  First time jobless claims were down to 330K which is the lowest they have been in 5 years.  This does not appear to be an anomaly as we have been witnessing a steady decline over the last 30 days.

Next week housing reports will dominate the economic calendar of reports.

  • Monday January 28th – Durable Goods Orders
  • Tuesday January 29th – S&P Case-Shiller House Price Index
  • Wednesday January 30th - MBA Applications, ADP Employment Report, FOMC Announcement, GDP
  • Thursday January 31st - First Time Jobless Claims
  • Friday February 1st – National Employment and Construction Spending

As your mortgage professional, I am happy to assist you with any information you may need regarding mortgage or real estate information.  I welcome the opportunity to serve you in any way I possibly can.  Please feel free to reach me at (---) ___-____.

Monday, January 21, 2013

Six Rules When Buying an Investment Property

Investing in properties is a good way to make money and build up your net worth. It is a very safe option of getting rich over the long term, as real estate values generally increase over time. However, returns are not very fast and you have to wait for considerable time before you make substantial money from real estate. To make the most of your investment into real estate, follow the six simple rules below.
1. Use Your Expertise and Knowledge
When purchasing investment property, look into your areas expertise and knowledge. Do you know about vacation homes, single-family homes, multi-family buildings, or commercial properties? You should know how and when to sell the property to earn the highest returns. If you are unaware of all rules and regulations relating to that property type, you may not be able to sell the property at a high profit.
2. Study Your Options
It is not essential to sell an investment property immediately after purchase. You can hold on to your investment until real estate values increase and then sell the property. Sometimes, it is best to bide your time and wait for real estate booms to sell and earn good profits on your investment. Another opportunity is to make suitable renovations and sell the property at an escalated price to earn very good returns. Property values increase over time and net worth of your investment increases. You can invest in real estate to receive a regular income from rent while you are waiting for property values to rise.
3. Consider the Benefits of the Location
Purchase your investment property in an area experiencing higher growth than other local areas. Inspect properties in different areas and choose those that satisfy necessary requirements. If you plan to invest in the property for several years, look into how the area will develop in the next few years and whether you can receive desired returns. You should have sufficient foresight and knowledge of the area.
Visit local councils and research what developments are happening in the vicinity in the near future. Drive around and scout for development and other area investments. Check the property is located near essential amenities like schools, hospitals, banks, transport, and supermarkets.
4. Reflect on Rental Demand
Your investment property yields good returns if there is sufficient rental demand for the property. Renters should be interested in renting the property. Normally, rental demand is high in densely populated areas like cities. Countryside locations do not have high demand and rental income could be substantially less.
5. Buy Property for Less than the Current Value
If you want to make money from real estate investing, choose properties that are being sold for less than the current market value. These properties may not be in the best shape and condition, so plan to incur repair and renovation costs. Before buying, hire a renovation consultant or home inspector to evaluate the cost of all repairs and renovations. Decide on the purchase price after deducting all additional costs. Ensure you can make a good profit when you sell the property after the renovation is complete.
6. Gather Financial Support
Investment property purchase requires strong financing. You may not be able to pool the entire cost, so consider the options for property loans. Assess all your mortgage options, so that you do not have excessive burden of repayments. If you are renting the property, apply the rent directly to the mortgage. Select a mortgage that can be repaid from the sale of property without additional fees or penalties for early repayment, especially if you plan to resell the property quickly.
Real estate investing for profit is a good option to earn money if you are an educated real estate investor. Investing in real estate is wise and can give even conservative investors high returns in the long-term. Renting the property while waiting for the best time to sell will increase your current income and cover the mortgage repayment costs.

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Sunday, January 13, 2013

Let’s start 2013 with a little sarcasm if I may…

It never fails, Congress comes up with a deal at the last minute (actually after the last minute) to stave off market self destruction.  As you know the Fiscal Cliff has been temporarily averted.  Congress was able to piece together a deal that was just enough to keep the markets from panicking, but comes nowhere close to solving our country’s fiscal dilemma.

Congress passed the new budget which increases taxes on an estimated 77% of the taxpayers in this country.  As a tax paying citizen of the United States I am not necessarily opposed to the increase, whatever it may be, however my issue is that once again our government has increased taxes but they have done nothing…zero…zilch…nada to reduce our nation’s debt or curtail spending.

In fact the irony of this temporary deal is that a good portion of the tax increase will not go towards deficit reduction, it is going to more increases in spending.  To make matters worse is that the government has already committed to more spending increases than revenue increases.  Bottom line we are going to continue to go further and further into debt.  (Wasn't this whole long drawn out battle in government about increasing taxes and reducing spending?)

My recommendation to you is get yourself a good accountant to save on as much income tax as you possibly can because it is obvious our government is going to keep reaching into our pockets more and more without ever doing anything to reduce our spending.  (Gee wiz…don’t we seem to be heading down the same path as Europe?  We all know how well that has turned out right?)

I almost forgot to mention that Congress has given themselves two months to address deficit reduction and come to an agreement on how it will be done.  My suggestion, go to Vegas and lay down your bet on the odds that they WON’T get it done in two months.  If they couldn't do it in two years, what makes you think two more months will make a difference?

In other news that no one seems to be paying attention to except mortgage professionals, real estate professionals, home buyers and home owners, mortgage rates are rising.  In just 3 days since the budget deal was passed mortgage rates have risen every single day.  Despite the government’s efforts to keep interest rates down, investors have more control over the direction of rates than anyone else.  Rates are still incredibly low however you should expect that the trend of rising rates is likely to continue.  In fact the Fed just the other day reported that they are not expecting rates to come back to the historic lows again.

Now is the time to refinance or purchase a home because the odds on the cost of borrowing money along with house price increases is more likely now that we have seen in the past 4 years.

Next week’s market moving reports are only a few:

Wednesday January 9th - MBA Applications
Thursday January 10th - First Time Jobless Claims

As your mortgage professional, I am happy to assist you with any information you may need regarding mortgage or real estate information.  I welcome the opportunity to serve you in any way I possibly can.  Please feel free to reach me at (707) 455-7070.

Thursday, January 10, 2013

Mortgage Loans Explained - The Basics

The global financial situation has made the economy credit dependent. People have become more and more dependent on loans in order to make investments such as buying a home. Amongst all the loan plans available, mortgage loans are most sought after. "Mortgage", when translated literally, refers to the security that you provide when you borrow money from a lender. In today's scenario, however, they are synonymous with home loans or property loans. These are high risk loans and also fluctuate a lot with the economy.
How do mortgage loans work?
With mortgage loans, the house or the property that you buy from the loan become the security against the loan amount. In case you are unable to repay the loan in future, these loans allow the borrower to take your property as compensation. These loans demand such high security since the lender takes a lot of risk in sanctioning the loan amount to you. Mortgage rates fluctuate largely with the market and so do property rates. As a result, lenders are at higher risk with such loans and will only entertain credible borrowers.
Eligibility for mortgage loans
There are a lot of factors that determine whether you will get a loan or not. Lenders will check your current financial situation, your credit history and also your income from all sources, before they sanction the loan to you. The mortgage rates are determined by a number of factors such as the sum you are borrowing, backlashes in your credit history and even the current and predicted economy. There is only one underlying principle with mortgage loans - the higher the risk, higher is the interest rate. All the financial institutions will calculate possible every possible risk involved and determine the interest rate.
Getting a good loan
As a borrower, you should compare all the deals offered by different institutions and choose wisely. In case you are inexperienced with finances, you can hire a mortgage broker who will scan all the options available for you and get you a loan that suits your need and current financial ability. With a broker, there are a few additional costs involved but you are in safer hands because the brokers helps you understand terms of conditions of different loans. So, you can make a better choice. Although banks are the best possible mortgage lenders, you can also approach government institutions to offer you mortgage loans. They sometimes offer better deals and will also help you in the application process with their in house agents.
Deciding on a loan
You need to be clear about three things when you borrow a mortgage loan - your requirement, your repayment ability and the tenure of the loan. In addition to a mortgage broker, you can also consult financial experts who will give you all the information that you require on these loans. Be aware of the current mortgage rates and all the additional fees and cost involved in mortgage loans. When it comes to planning your finances and making investments, you should be cautious and make sure that you are not caught off guard by hidden clauses.

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Monday, January 7, 2013

Use Mortgage Companies To Secure A Home Loan

Obtaining a mortgage remains the most secure form of financial transaction for the lender to individuals and businesses alike. Mortgage companies are specialized financial institutions that are engaged in the disbursal of loans for personal and commercial purposes. These loans are accompanied by a personal property or asset that is pledged as collateral on behalf of the borrower of the loan.
This kind of loan is particularly useful in cases where the borrower does not wish to make the entire payment upfront. He however does have the resources that can make him a safe bet for the loan. In the event of non-payment of the loan, these collateral can be disposed off to recover the borrowed funds.
In addition to the primary function of financial assistance, they also provide some other services too. These include the latest mortgage quotes, calculation of regular repayable amounts and the quick approval of mortgage applications. Online loan application facilities that can provide for quick approval for mortgaging will go a long way in popularizing these services.
These money lenders offer two main types of schemes to borrowers and they are the Fixed (or rigid) Rate Mortgage (FRM) and the Adjusted (or variable). As the name suggests, in the former the rate will remain the same over the entire period of loan return. In the case of the latter, the rate will not be the same over the tenure of the loan. Other plans for interest rates on loans may vary from company to company, each with their own unique benefits to customers.
Lenders such as these offer a lot of choices and they can also customize them to suit particular needs of the customer. A good example could be the reverse type plans for senior citizens. In this kind of mortgaging, the spouse continues to have rights over the mortgaged asset after the death of one of the partners. In the eventual death of both the spouses, these businesses can dispose it off to repay any leftover amount of the loan. Loans for commercial purposes are also tailor made to suit each business venture.
Secured loans business today has a strong online presence and lenders have details of all their services, facilities and all the different mortgage loans on their sites. Tougher laws for the lenders include a lot of measures such as licensing for companies engaging in mortgaging and also putting in place an effective mechanism to weed out the fraudulent companies floating on the net. It is also aimed at eliminating unjust, uncompetitive business practices in this area.
Regulations require that institutions put into place effective strategies, policies and screening for address discrepancies in their consumer reports. It is in their interest to verify that the client has provided valid information. According to the guidelines, in order to protect themselves and their customers, these financial institutions are required to formulate policies that would immediately place red flags on clients that exhibit suspicious activities.
A number of countries now believe in regulating the working of such companies and they do lay down rules, regulations and enact laws to monitor their activities. This also ensures that authorities can keep a nationwide check on the past activities of mortgage companies. Regulators thus protect the borrower from unscrupulous companies and at the same time protect these companies from fraudulent borrowers.

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