Tag Archives: 15-year

San Diego home prices increase

San Diego home prices are at 4-year high

“Home prices in San Diego County, still far from their pre-recession peaks, have risen to their highest level in four years, Tuesday’s DataQuick report shows. Home sales, which went through a five-month positive streak, have dropped.

The median price for all homes sold in July was $342,000. That’s the highest it’s been since August 2008, when the economy was in the dumps and the local median price was $350,000. The county peaked at $517,500 in November 2005.

July’s median price increased 1.9 percent from $335,500 recorded in June, and up 5.2 percent from the same time last year. Price boosts were most evident among condo resales. All five regions of the county saw price increases from a year ago. The hottest area was central San Diego, where the median price rose from $226,750 to $267,000, or nearly 18 percent.

The county recorded 3,565 sales in July, marking the first sales drop in five months. Transactions fell 5.1 percent from June, but they’re 17.2 percent higher than a year ago…”

Read the original article by Lily Leung at U~T San Diego here: “San Diego home prices are at 4-year high”.

Why should you get a 15-year mortgage?

Benefits of 15-year mortgage hard to beat

Why those lured by smaller payments on 30-year loan should reconsider

By Jack Guttentag, Monday, April 30, 2012. Inman News®

The case for 15-year fixed-rate mortgages has never been stronger because, in the post-crisis market, the rate advantage over the 30-year has never been larger. The rate advantage is about 0.875 percent, whereas prior to the crisis, it was 0.375 percent to 0.5 percent.

Consider two $100,000 loans, one a 15-year at 3.125 percent and the other a 30-year at 4 percent. The respective payments are $696.61 and 477.42. After 15 years, the borrower with the 15-year loan has paid $39,454 more but is out of debt whereas the borrower with the 30-year loan still owes $64,543.

But there is a counterargument. A disciplined borrower can choose the 30-year loan and invest the difference in payment between the 30- and the 15-year loans, in that way offsetting the higher interest rate on the 30-year loan. Some financial planners recommend this approach to their clients as part of a program to build wealth faster.

The challenge in making such a program work is that the rate of return on the invested cash flow must exceed the rate on the 30-year loan by an amount that depends on how much higher the 30-year rate is than the 15-year rate…

Read the rest of this article by Jack Guttentag at Inman News here: “Benefits of 15-year mortgage hard to beat”.

Lowest Mortgage Rates in History & Buying or Selling

With signs that sales are on the rise for residential real estate, mortgage rates have again dropped to their lowest point in history this week at 3.88% for a 30-year fixed rate mortgage, while 15-year fixed rate mortgage averaged in at 3.17%.

For more details, read Freddie Mac’s article here: “30-year Fixed-rate Mortgage Averages 3.88 Percent“.

Are you still resting comfortably on the fence or are you doing the same thing over and over again–which is the description of insanity!! Get out there now! Prices are great, interest rates are great! What else is there? Oh year, you need a great real estate agent to guide you! Well, since you are reading this and you know I am one with over 20 years’experience, I promise I will not bite!

If you are thinking of selling to downsize, upgrade–or you want to hold onto your current residence and rent it out, you have the opportunity of a lifetime.

On the other side of the coin, if you are struggling to make your house payments or about to, I will meet you one on one to go over your situation and help you explore all the avenues to keep your home at no cost. This offer is never made by the so-called gurus or big producer agents personally; you will only meet with their assistants. I have contacts in the legal and accounting arena that are also at your disposal for free, but you will need to contact me for that offer to be complete.

In listing a new property yesterday, the owners that I conferred with were so relieved to know that they have their best option after I counseled and reviewed their situation in detail. The relief and clear mind that was produced cannot have a value placed on it. there are so many options with consequences out there to keep or sell your home, that a consultation is the best prescription.

I am here to help.

2011 had lowest mortgage rates on record

You’ve probably been hearing all year long how mortgage interest rates were at record lows.

Now, the final data is in. And it shows that 2011 had the lowest average interest rates in the 41 years that mortgage giant Freddie Mac has been tracking loan rates.

Specifically, the U.S. average was 4.45% on the 30-year fixed-rate mortgage, Freddie Mac reported. That beats the previous low of 4.69% set in 2010.

The past two years are the only ones in Freddie Mac’s records in which the annual average rates were below 5% for a 30-year, fixed-rate loan. In 1981, 30-year mortgage rates averaged nearly 17%. As recently as 2008, rates were averaging above 6%.

Interest rates fell below 4% for the first time in Freddie Mac’s data in October – and stayed at or below 4% for the last nine weeks of the year. Thirty-year rates set six records last year, falling to an all-time low of 3.91% on Dec. 22.

Other types of mortgages were in record territory as well. According to Freddie Mac:

  • Fifteen-year, fixed-rate mortgages set eight records in 2011, falling to an all-time low of 3.21% on Dec. 15.
  • Five-year, adjustable-rate mortgages set nine records in 2011, falling to an all-time low of 2.85% on Dec. 22.
  • One-year, adjustable-rate mortgages set 14 records in 2011, falling to an all-time low of 2.77% on Dec. 22.

The record low mortgage rates failed to spark a revival in the housing market, with fewer buyers able to qualify for a loan or able to afford to purchase a home. Overall, local and U.S. home sales remain well below average levels.

This article is from the Orange County Register; read it here: 2011 had lowest mortgage rates on record.”