OC Realty Blog

Mortgage rates increased for the fifth consecutive week, with the average
30-year fixed mortgage rate rising to the highest point since August,
according to Bankrate.com’s weekly national survey of large lenders.

The average 30-year fixed mortgage rate is now 6.47 percent and has an
average of 0.26 discount and origination points.

The average 15-year fixed rate mortgage, popular for refinancing, increased by a similar amount, to 6.21 percent. With larger loans, the average jumbo 30-year fixed rate climbed to 6.68 percent. On adjustable rate mortgages, the average one-year ARM nudged higher to 6.09 percent while the 5/1 ARM jumped up to 6.37 percent. 
(Click Image To See Full Graph)

“Mortgage rates often show short spurts of volatility and prolonged periods of little movement,” Bankrate notes in its survey report. “Mortgage rates had been confined to a narrow range of approximately one-third of a percentage point for nearly seven months - including weeks on end with virtually no movement. But they broke out of that range with this week’s move, as hopes for a Fed interest rate cut continue to wane.”

Fixed mortgage rates have increased nearly one-third percentage point since mid-March. At the time, the average 30-year fixed mortgage rate dipped to 6.16 percent, meaning that a $165,000 loan would have carried a monthly payment of $1,006.30. With the average 30-year fixed rate now 6.47 percent, the same loan originated today would carry a monthly payment of $1,039.66.

Fixed mortgage rates still remain a compelling refinancing alternative for
adjustable rate borrowers facing sharp payment adjustments.

Bankrate’s national weekly mortgage survey is conducted every Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

- REALTOR® Magazine Online

Rates obtained from our local lender, First Capital.

As the property market cools down, it becomes a good time for buying real estate.  If you don’t have that much money to spend on a house, but you’re absolutely convinced that it’s the right time for you to move (or if you’ve found an intriguing real estate investment property) then you need to learn how to make the offer you want — and get it accepted.

First and foremost, learn what types of properties you’re looking for in terms of both the house and the seller.

The House:

The properties you’re interested in have been on the market more than a month.  There’s not necessarily anything seriously wrong with them, but they’re just not generating much attention.  Maybe they’re unattractive, on a busy street, or in disrepair.  The key is to find properties that maybe need a little repair work, but nothing major.  Your offer isn’t worth much if you have to spend all the money you saved on structural or wiring work.

The Seller:

When selling real estate, the seller you’re looking for needs to move ASAP.  Perhaps they’re relocating to a job in another city, or they’ve already bought another house but want to sell the old one before leaving town.  Maybe they’re selling the home of a recently-deceased relative, and they just want to get the whole thing over with.  Maybe they’ve defaulted on their mortgage payments and the house is foreclosing.  These are motivated sellers and they’re more willing to accept a low offer on their property.

The Secrets:

• Get pre-approved for a mortgage before you start shopping.  It’ll make you more attractive to sellers.  Also shop for the best mortgage loan rates. 
• Shop at the right time — one of the best times to look is during the week between Thanksgiving and New Year’s, simply because very few people are looking then.  If you find the right house or the right seller at this time, it’s a great opportunity for getting a low offer accepted.
• Make an initial offer that’s below what you want to pay, and prepare to be rejected.  Let the seller feel that they’re negotiating a better deal with you and they’re more likely to accept your second or third offer.  (Note: in a competitive market this strategy isn’t advisable, but in a slow market it’s worth trying.)
• Make offers on several properties.  The more opportunities you create, the more likely you are to have a seller accept your offer.
• Hire a buyer’s agent.  The seller’s agent is trying to get the best possible deal for their client and they’re not going to help you get a low offer accepted.  A dedicated buyer’s agent will, and they’ll most likely have more in-depth knowledge of the neighborhood and current market prices, too.
• Don’t use the list price as an indication of a property’s true market value.  List prices are often inflated, so do your own research.  Have your Buyer’s Agent get a Current Market Analysis for the area and find out how accurate that list price really is.
• Give the seller a good reason to accept your price.  Offer to close quickly, offer to pay in cash, and be flexible on inspection dates.  Accommodate the seller in every way possible, and if they’re motivated to sell they’ll be more amenable to your offer.

If you’re interested in purchasing Orange County Real Estate, call or email me so I can help you structure the best offer for your next home!

Homeowner’s Exemption - Have You Applied?

I was just advising a client who was buying Orange County real estate to watch out for the California Homeowners’ Exemption form in the mail.  This is sometimes overlooked and not filed with the County Assessor’s Office, which will result in paying more property taxes than you need to!  I don’t know about you, but I don’t like paying more taxes than I have to!!!

What is Homeowners’s Exemption?  It reduces your assessed “taxable value” by $7,000.  This will save you real $$$ off your property taxes annually!  You may qualify if:

• You own the property
• The property is your primary residence
• You don’t alrready have a Homeowners’ Exemption
• You submit a completed application

If you aren’t sure if you’ve filed your exemption already, just call or email me (provide name and address on title and a contact number).  I’d be happy to check on your status for you.

To find out more information about Homeowner’s Exemption, visit the Orange County California Assessor’s Office website at http://www.ocgov.com/assessor/exemption2.asp

What type of home are you looking for?  There are so many choices that it is important to have an idea of what you want and need before you begin looking.  Consider making a checklist of amenities that are essential and those you would like to have in your new home. 

The list below may help you clarify your thinking on what is important to you when you are ready to purchase.

* What neighborhood(s) would you like to live in?
* What price range do you have in mind?
* What type of home interests you? (one-story, two-story, condo, etc.)
* Do you want a new home or a fixer?
* Are schools a factor?
* Do you need to be close to public transportation?
* How many bedrooms and bathrooms do you need? 
* What other interior features are important to you? (separate family room, formal dining room, home office, main floor bedroom, etc.)
* What about exterior features (lot size, patio, pool/spa, view, or waterfront)?
* Are there any special features you are looking for in a home (gated community, senior community, garage space, wheelchair access, etc.)?

When you are ready to start your search, I will be happy to help you find a home that suits your lifestyle.  My goal is to make this a fun and enjoyable experience.

Please feel free to call or email me when you are ready to start looking. I welcome the opportunity to help you find your next home in South Orange County California.

Most real estate lenders require you to pay a portion of your own funds–the down payment–toward the purchase of a home. Saving for a down payment can be one of the most challenging steps in buying a home.Your down payment plus your pre-approved loan amount will determine how much home you can afford. A down payment can come from many places: savings, investments such as stocks and bonds, gifts from relatives, company bonuses, equity in other assets, and life insurance policies, to name a few. Then again, there may be home mortgage alternatives that do not require a down payment.  With good credit, you can still obtain a 100% loan option (visit my mortgage broker at www.ocloanteam.com).

• Laguna Niguel Real Estate
• San Clemente Real Estate
• Laguna Beach Real Estate
• Newport Beach Real Estate

When is the right time to buy?  People move into home ownership for a variety of reasons.  Some want to become established in a community or to provide a more permanent home for their family.  Many think that real estate is a good investment.

There are many advantages to home ownership: 

. . .  Appreciation –Your home can increase in value over time, increasing your equity and your personal net worth.

 . . . Personalization –You can change or improve your home to suit your style and needs, such as painting or wallpapering, installing new flooring, or upgrading the bathrooms. 

. . . Space – A house generally offers you more space inside and out than a rental apartment, along with the ability to remodel the existing space or add on. 

. . . Enjoyment – Plain and simple, most homeowners take a great deal of pride in their homes.

When you are ready to purchase a home in South Orange County California, I welcome the opportunity to help you.  I specialize in the areas of Laguna Niguel, Aliso Viejo, Laguna Hills, Mission Viejo, Dana Point, San Juan Capistrano, San Clemente, Laguna Beach, Corona Del Mar, and Newport Beach.

The specialty of buyer’s representation not only requires knowledge of real estate markets and transactions, but insight into consumer behavior. The goal of a buyer’s representative is to find the perfect point of connection between the homes available in the market and the needs and financial capacity of the buyers.

Let me show you how I can save you time by:

1. Locating suitable properties.

2. Previewing properties.

3. Verifying the properties’ condition.

4. Suggesting necessary inspections by experts.

5. Helping you determine what you can afford.

6. Verifying property taxes and utilities.

7. Verifying the value of the property.

8. Advising you on structuring an offer.

9. Presenting the offer to the sellers’ representative.

10. Negotiating favorable contract terms for you.

11. Explaining legal documents needed for closing and helping secure them.

12. Assisting in securing financing.

13. Assisting in clarifying title, zoning, building codes, and access easements.

14. Refer you to qualified vendors.

15. Analyzing the future salability of the property.

If you’re thinking about buying a home in the South Orange County Areas of Laguna Niguel, Aliso Viejo, Laguna Hills, Mission Viejo, Dana Point, San Juan Capestrano, San Clemente, Laguna Beach, Newport Beach, give me a call to find your perfect home!