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California Home Sales Post Higher in February; Inventory Remains Low

2012-03-15T15:32:00.000-07:00

LOS ANGELES, Mar 15, 2012 (BUSINESS WIRE) -- Recent improvements in the overall economy, combined with extremely low interest rates lifted California home sales from both the prior month and year in February, according to data from the CALIFORNIA ASSOCIATION OF REALTORS(R) (C.A.R.).

The median price dipped from January but is beginning to show signs of stabilization.
"While the median home price dipped in February, the year-over-year decline was the smallest recorded since December 2010," said C.A.R. President LeFrancis Arnold. "This may be a signal of a possible stabilization in home prices, which should bode well for prospective buyers who have been on the sidelines waiting for prices to level out and may entice them to jump into the market."

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 528,010 in February, according to information collected by C.A.R. from more than 90 local REALTOR(R) associations and MLSs statewide. February's sales were up 2.1 percent from January's revised pace of 517,120 and up 5.5 percent from the revised 500,480 sales pace recorded in February 2011. The statewide sales figure represents what would be the total number of homes sold during 2012 if sales maintained the February pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

"February sales posted a stronger than usual performance with sales in major metropolitan areas such as Los Angeles, Orange County, San Diego, and San Francisco all logging double-digit gains from the previous year," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Recent encouraging signs in the GDP, employment picture, and consumer confidence suggest that a growing economy is in the making. All this, combined with continued-low mortgage rates, lays out a good foundation for the housing market to continue to grow as we enter the spring home buying season."

The statewide median price of an existing, single-family detached home dipped 0.6 percent to $266,660 in February from January's $268,280 median price. The median price was down 1.7 percent from the revised $271,370 median price recorded in February 2011.
Other key facts of C.A.R.'s February 2012 resale housing report include:
-- California's housing inventory declined in February, with the Unsold Inventory Index for existing, single-family detached homes decreasing to 5.3 months in February, down from a revised 5.7 months in January and down from the 7.5-month supply in February 2011. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

-- Interest rates fell to record lows again in February. Thirty-year fixed-mortgage interest rates averaged 3.89 percent during February 2012, down from 4.95 percent in February 2011, according to Freddie Mac. Adjustable-mortgage interest rates averaged 2.78 percent in February 2012, compared with 3.35 percent in February 2011.
-- The median number of days it took to sell a single-family home fell to 58.9 days in February 2012 and was down from a revised 64.7 days for the same period a year ago.
-- View Unsold Inventory by price range.

Note: The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS(R) throughout the state, and represent statistics of existing single-family detached homes only. County sales data are not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. Due to the low sales volume in some areas, median price changes in December may exhibit unusual fluctuation.

Leading the way...(R) in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS(R) ( www.car.org ) is one of the largest state trade organizations in the United States with 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles. Entire Article: http://www.marketwatch.com/story/california-home-sales-post-higher-in-february-inventory-remains-low-car-reports-2012-03-15

The views, opinions, positions or strategies expressed by the authors and those providing comments or external internet links are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of First Capital, we make no representations as to accuracy, completeness, current, suitability, or validity of this information and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. Any information provided does not constitute an offer or a solicitation to lend. Providing information to purchase does not guarantee a loan approval. All registered trademarks, copyright, images, or other items used are property of their respective owner and are used for editorial purposes only.

First Capital Mortgage is a subsidiary of PHH Home Loans LLC, a direct lender, Dept. of Corporations file #413-0713

Visit First Capital Online or call: 310-458-0010

Americans Grow More Confident in Housing Recovery, Survey Shows

2012-03-14T10:01:00.000-07:00

Potential homebuyers and sellers are growing more confident that the U.S. real estate market will begin to recover as soon as next year, according to a Prudential Real Estate survey.

Sixty percent of people surveyed last month had positive views about the housing market and 70 percent expected property values to improve over the next two years, according to the survey released today. About 63 percent of respondents said they considered real estate a good investment, up from 52 percent last year, the Irvine, California-based broker reported.

This is the second consecutive year consumer confidence in housing has improved, signaling the property market may “finally be climbing out of its deep hole,” Stephen Van Anden, chief marketing officer for Prudential Real Estate, said in a telephone interview.
While foreclosures and declining home prices have contributed to a six-year real estate slump, rising employment and low mortgage rates may be bolstering buyer confidence. The Federal Reserve, in its regional Beige Book business survey issued Feb. 29, said the housing market “has improved somewhat in most districts” with Boston, Cleveland, Atlanta and Dallas among cities reporting increases in home sales.

More than 90 percent of respondents in the Prudential survey said the housing crisis is a reminder they must be more cautious in buying and selling property. About 80 percent of people polled said homeownership is important to them, while 15 percent said the economic downturn made owning a home less important.

“There is still a desire for homeownership, and as we see continued improvement in the job market, there is going to be an unleashing of pent-up demand,” Van Anden said.
Survey respondents were 25 to 64 years old with a household income of at least $50,000, and either recently bought or sold a home or are considering a purchase or sale. Prudential Real Estate collected responses from 1,251 people.

To contact the reporter on this story: Christine Harvey in New York at Charvey32@bloomberg.net

First Capital Mortgage is a subsidiary of PHH Home Loans LLC, a direct lender, Dept. of Corporations file #413-0713

Visit First Capital Online or call: 310-458-0010

Fannie Mae: Outlook For Home Prices Improves Modestly In February

2012-03-07T15:01:00.000-08:00

The consumer outlook for U.S. home prices improved modestly in February, extending a recent upward trend in housing market sentiment, according to mortgage funding firm Fannie Mae (FNMA)

For its monthly reading, Fannie Mae said respondents in its February survey predicted home prices will rise 0.8% over the next year, down slightly from 1% in January, and even with December. The portion of respondents that said it is a good time to sell improved by 3 percentage points to 13% last month, the highest level in more than a year.

Fannie Mae Chief Economist Doug Duncan said "The pickup in the pace of hiring over the past few months has helped soothe consumer concerns, lifting their moods regarding their personal finances, the direction of the economy, and their views on the housing market."

About 35% of respondents said they believe the U.S. economy is on the right track, up 5 percentage points from January. The percentage who said the economy is headed in the wrong direction fell to 57% of respondents, marking a 6 percentage point decline from the previous month

The survey also found just 12% of respondents expect their personal financial situation to worsen over the next year, down 3 percentage points from January and the lowest level in more than a year

The survey is based upon a monthly poll of roughly 1,000 adults and has a margin of error of plus or minus 3.1%. -By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com

Theviews, opinions, positions or strategies expressed by the authors and thoseproviding comments or external internet links are theirs alone, and do notnecessarily reflect the views, opinions, positions or strategies of FirstCapital, we make no representations as to accuracy, completeness, current,suitability, or validity of this information and will not be liable forany errors, omissions, or delays in this information or any losses, injuries,or damages arising from its display or use. Anyinformation provided does not constitute an offer or a solicitation to lend.Providing information to purchase does not guarantee a loan approval. All registeredtrademarks, copyright, images, or other items used are property of theirrespective owner and are used for editorial purposes only.

First Capital Mortgage is a subsidiary of PHH Home Loans LLC, adirect lender, Dept. of Corporations file #413-0713

Visit FirstCapital Online or call: 310-458-0010

Mortgage refinance package - Obama reduces refinance costs for FHA mortgages

2012-03-06T10:13:00.000-08:00

Borrowers with some federally insured mortgages will be able to refinance into lower interest rate loans more easily and cheaply under a plan being unveiled Tuesday by the Obama administration.

At a news conference scheduled later in the day, President Obama was set to announce that the Federal Housing Administration will cut upfront fees for refinancing loans it already insures.

The new fees are for borrowers whose FHA loans were issued before June 1, 2009. An estimated 2 to 3 million borrowers could take advantage of the savings, which could reduce mortgage payments for the typical FHA borrower by about a thousand dollars a year, according to the administration.

Borrowers who refinance their existing FHA loans will pay an upfront insurance premium equal to 0.1% of the mortgage amount -- $100 for a $100,000 loan -- plus an annual fee of 0.55%.

The fees being announced for refinancing contrast sharply with the cost of obtaining a new FHA loan, according to Jaret Seiberg, an analyst with the Washington Research Group. A borrower making a 3.5% down payment on a home purchase as of April 1 will pay a 1.75% upfront fee and a 1.25% annual fee. Those purchase fees were raised barely a week ago to improve the FHA's capital reserve.

Still, lowering refinancing fees "should be broadly positive for housing and the economy by reducing foreclosures and freeing up income for consumers to spend on other goods and services," Seiberg said.

Has Obama's housing policy failed?

The new policy will also make it easier for the banks to refinance loans because it directs the FHA to not count these refinanced loans toward the lender's "compare ratio." That calculates the performances of loans issued by the lenders and compares it to other lenders's performances.

Some lenders have not wanted to refinance FHA borrowers because their loans tended to have been made to borrowers from years with high default rates, according to Seiberg. The administration proposal eliminates the downside to banks making these refinance loans.

Also being provided with potential relief are servicemen wrongfully foreclosed on. Lenders and servicers will be required to review the cases of every service member foreclosed upon since 2006.

Under the plan, any service member wrongly foreclosed upon will receive compensation. There will also be a refund of any overcharges for those who were denied the opportunity to refinance, and relief for those who had to sell their homes at a loss because of a change in station.

View this article on CNNMoney

Theviews, opinions, positions or strategies expressed by the authors and thoseproviding comments or external internet links are theirs alone, and do notnecessarily reflect the views, opinions, positions or strategies of FirstCapital, we make no representations as to accuracy, completeness, current,suitability, or validity of this information and will not be liable forany errors, omissions, or delays in this information or any losses, injuries,or damages arising from its display or use. Anyinformation provided does not constitute an offer or a solicitation to lend.Providing information to purchase does not guarantee a loan approval. All registeredtrademarks, copyright, images, or other items used are property of theirrespective owner and are used for editorial purposes only.

First Capital Mortgage is a subsidiary of PHH Home Loans LLC, adirect lender, Dept. of Corporations file #413-0713

Visit FirstCapital Online or call: 310-458-0010

Rate on 30-year Mortgages Still Close to Historic Lows

2012-03-01T13:39:00.000-08:00

Published March 01, 2012 Associated Press

Average Rate on 30-year mortgage down to 3.90 pct.

WASHINGTON – The average rate on the 30-year mortgage edged down this week to hover again above record lows.

Cheaper rates have spurred modest improvements in the battered housing market, but not enough to signal a recovery.

Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year home loan fell to 3.90 percent from 3.95 percent the previous week. That's slightly above the 3.87 percent average rate hit two weeks ago, which was the lowest since long-term mortgages began in the 1950s.

The average on the 15-year fixed mortgage fell to 3.17 percent from 3.19 percent a week ago. It hit a record 3.14 percent four weeks ago. Mortgage rates have been below 4 percent for more than three months. That has made home-buying and refinancing more attractive for those who can qualify.

Home sales have improved and the four-week average of home purchase applications was up a smidge last week, according to the Mortgage Bankers Association. Refinancing now makes nearly 78 percent of mortgage activity.

But government programs have been propping up the relatively low level of mortgage applications. The Obama administration's revamped refinancing program, the Home Affordable Refinance Program, or HARP, now accounts for more than 20 percent of refinancing nationwide.

Elsewhere, the housing market is displaying signs of health ahead of the traditionally busy spring-buying season.

Builders are more optimistic and construction has picked up. The supply of homes fell last month to its lowest point in nearly seven years, which could send home prices higher.

Nationwide, home prices have fallen by 33 percent since hitting their peak in late 2006. Single-family homes are considered "undervalued assets" when looking at both rents and incomes, according to Capital Economics.

The job market is also improving, which is critical to a housing rebound. In January, employers added 243,000 net jobs — the most in nine months — and the unemployment rate fell to 8.3 percent, the lowest level in nearly three years.

But there are major obstacles in the way before people start buying homes again.

Foreclosures and short sales — when a lender agrees to sell a home for less than what is owed on a mortgage — are still piling up and driving down home prices, which fell for a fourth straight month in December, according to the Standard & Poor's/Case-Shiller home-price index.

The weaker economy has persuaded more young Americans to rent instead of buy. That has spawned a rise in apartment construction and a drop in the nation's homeownership rate.

Frank Nothaft, Freddie Mac's chief economist, said the low rates are helping lift the housing market. Still, home sales remain weak and it could take years for the market to fully return to health.

To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.

The average rates don't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fees for the 30-year and 15-year loans were unchanged at 0.8.

For the five-year adjustable loan, the average rate rose to 2.83 percent from 2.80 percent, and the average fee was unchanged at 0.7.

The average on the one-year adjustable loan ticked down to 2.72 percent from 2.73 percent, and the average fee was unchanged at 0.6.

FHA To Increase Up-Front Mortgage Insurance Premiums April 1, 2012

2012-03-01T10:05:00.000-08:00

Beginning April 1, 2012, the cost of up-front mortgage insurance premiums will increase by 75 basis points on new, 30-year, single-family FHA loans.

The Federal Housing Administration announced the change tuesday (See Document), as part of their plan to protect capital reserves.

The up-front premium, which is 1.75 percent of the loan amount, is expected to increase the agency’s revenue by $1 billion per year. Annual premiums on loans up to $625,000 will rise by 10 basis points, while loans up to $729,750 will increase by 35 basis points.

The increase is no surprise, since the FHA has failed to meet the capital ratio (ability to withstand losses) legal minimum of two percent, for three years in a row.

Some fear that because the FHA typically backs many first-time home buyers and low-income borrowers, the increases might make it financially difficult for them to enter the housing market. However, premiums can be amortized over the life of the loan, which may ease the burden of the extra cost.

One side note: FHA Streamlines, which allow current FHA loan holders to qualify for a lower-rate FHA loan, will not be affected – yet.

Make sure to visit First Capital for mortgage updates and changes, and how they may affect you.

Visit FirstCapital Online or call: 310-458-0010

Theviews, opinions, positions or strategies expressed by the authors and thoseproviding comments or external internet links are theirs alone, and do notnecessarily reflect the views, opinions, positions or strategies of FirstCapital, we make no representations as to accuracy, completeness, current,suitability, or validity of this information and will not be liable forany errors, omissions, or delays in this information or any losses, injuries,or damages arising from its display or use. Anyinformation provided does not constitute an offer or a solicitation to lend.Providing information to purchase does not guarantee a loan approval. All registeredtrademarks, copyright, images, or other items used are property of theirrespective owner and are used for editorial purposes only.

First Capital Mortgage is a subsidiary of PHH Home Loans LLC, adirect lender, Dept. of Corporations file #413-0713

Zillow and Trulia Face Backlash from Realtors

2012-02-29T11:55:00.000-08:00

Among their complaints are that the sites allow any agent, for a fee, to have their name and photo appear prominently beside homes listed for sale in a given region, even if they aren’t the agent who represents the seller. In reality, the agent in the photo may know little about the property or the neighborhood where the house is located, frustrating customers’ efforts to get accurate answers, according to a report last year by real estate consulting firm Clareity.

Some realtors also claim that many listings on the largest sites are inaccurate. “The wrong photos often appeared with our listings,” says San Diego realtor Jim Abbott, whose firm no longer shares data with the national sites. He also says that the sites kept up listings that were no longer on the market.

Clareity CEO Gregg Larson says Zillow and Trulia get information about the same property from multiple sources (like the listing agent, the local multiple listing service, and a syndication service). “The duplicates sneak through, and then you have [the same] listing with different prices, listed by different brokers.”

One Massachusetts realtor, Jack Attridge, notes in a letter to Inman News that because homes he’s listed appear on national sites, he’s often contacted by agents and customers well outside his area who have questions about those properties. Most of the time, they have wrong information, and none of those calls, Attridge wrote, have resulted in a sale.

These and other problems hurt realtors reputations and do nothing to sell houses, they say. Abbott argues that inaccurate web listings, combined with side-by-side links to realtors who know little about the property, frustrate potential buyers and may actually drive them to look elsewhere. He studied three years of his firm’s sales data and compared listings that the company didn’t share with national sites versus those they did. “Time after time, the listings that we did syndicate compared with the listings that we didn’t had no better outcomes,” he says. “In fact the ones we didn’t syndicate often sold faster” and closer to the asking price.

Zillow CEO Spencer Rascoff has fired back, asserting that an internal company study shows that homes that are in the top 10 percent of page views on Zillow sell more than a month faster than their counterparts in the bottom 10 percent of views and achieve sale prices closer to their asking price. He also says Zillow “invests massive resources in making our listings as accurate as possible.

Nevertheless, Abbott and a few others have opted out. Minnesota-based Realty fired the first shot in November by announcing they’ll no longer list their data on aggregator sites like Trulia and Realtor.

Abbott pulled out on January 27 with a hard-hitting web video announcing his company’s plans. Then on February 6, a bigger player weighed in. Denver-based Metrolist, a multiple-listing service (a member cooperative that realtors jointly buy into that advertises properties locally), announced they’ll no longer allow a Zillow subsidiary to use their data. Some realtors in larger metropolitan areas say they have better local listing service options. “It would only take a few good-sized brokers in every community before these sites either drastically changed how they do business or went away altogether,” says Abbott.

But other industry insiders worry that realtors will lose business by pulling out of the aggregator sites. “All it takes is [brokers who don’t share data] losing a few listings and having a couple of their top-selling agents complain,” Larson says, and “they’ll cave.”

Phoenix realtor Jay Thompson has chosen to continue listing with the sites. “Good luck explaining your decision to not market a listing on high traffic sites,” he writes on his blog. “I can assure you that if a Phoenix area brokerage chooses to do that, then we will use their decision to our advantage.”
Abbott argues the opposite could happen — since he posted his video, he’s had 12 people who were interviewing for an agent to sell their home ask him about his company’s new policy. “We got all 12 of those listings,” he says. Calls to the firm, he says, have “gone through the roof.”

Theviews, opinions, positions or strategies expressed by the authors and thoseproviding comments or external internet links are theirs alone, and do notnecessarily reflect the views, opinions, positions or strategies of FirstCapital, we make no representations as to accuracy, completeness, current,suitability, or validity of this information and will not be liable forany errors, omissions, or delays in this information or any losses, injuries,or damages arising from its display or use. Anyinformation provided does not constitute an offer or a solicitation to lend.Providing information to purchase does not guarantee a loan approval. All registeredtrademarks, copyright, images, or other items used are property of theirrespective owner and are used for editorial purposes only.

First Capital Mortgage is a subsidiary of PHH Home Loans LLC, adirect lender, Dept. of Corporations file #413-0713

Visit FirstCapital Online or call: 310-458-0010

It used to be a given for anyone selling their house – a realtor would put their listing on national real estate aggregator websites like Zillow, Trulia, and Realtor.com to maximize exposure and sell homes quickly. But that could be changing fast as the two entities face off.
Since 2005 or so, realtors have shared data about homes they have for sale with those national sites, which have millions of visitors (Zillow, for example, had 32 million last month). But even though the sites have grown, sales haven't in the distressed housing market, and some agents believe the sites may not be helping. They accuse them of engaging in practices that give buyers inaccurate information that may hurt sales.
RELATED: 10 Ridiculously Desperate Real Estate Listings
Among their complaints are that the sites allow any agent, for a fee, to have their name and photo appear prominently beside homes listed for sale in a given region, even if they aren’t the agent who represents the seller. In reality, the agent in the photo may know little about the property or the neighborhood where the house is located, frustrating customers’ efforts to get accurate answers, according to a report last year by real estate consulting firm Clareity.
Some realtors also claim that many listings on the largest sites are inaccurate. “The wrong photos often appeared with our listings,” says San Diego realtor Jim Abbott, whose firm no longer shares data with the national sites. He also says that the sites kept up listings that were no longer on the market. Clareity CEO Gregg Larson says Zillow and Trulia get information about the same property from multiple sources (like the listing agent, the local multiple listing service, and a syndication service). “The duplicates sneak through, and then you have [the same] listing with different prices, listed by different brokers.”
One Massachusetts realtor, Jack Attridge, notes in a letter to Inman News that because homes he’s listed appear on national sites, he’s often contacted by agents and customers well outside his area who have questions about those properties. Most of the time, they have wrong information, and none of those calls, Attridge wrote, have resulted in a sale.
These and other problems hurt realtors reputations and do nothing to sell houses, they say. Abbott argues that inaccurate web listings, combined with side-by-side links to realtors who know little about the property, frustrate potential buyers and may actually drive them to look elsewhere. He studied three years of his firm’s sales data and compared listings that the company didn’t share with national sites versus those they did. “Time after time, the listings that we did syndicate compared with the listings that we didn’t had no better outcomes,” he says. “In fact the ones we didn’t syndicate often sold faster” and closer to the asking price.
Zillow CEO Spencer Rascoff has fired back, asserting that an internal company study shows that homes that are in the top 10 percent of page views on Zillow sell more than a month faster than their counterparts in the bottom 10 percent of views and achieve sale prices closer to their asking price. He also says Zillow “invests massive resources in making our listings as accurate as possible.”

Nevertheless, Abbott and a few others have opted out. Minnesota-based Edina Realty fired the first shot in November by announcing they’ll no longer list their data on aggregator sites like Trulia and Realtor. Abbott pulled out on January 27 with a hard-hitting web video announcing his company’s plans. Then on February 6, a bigger player weighed in. Denver-based Metrolist, a multiple-listing service (a member cooperative that realtors jointly buy into that advertises properties locally), announced they’ll no longer allow a Zillow subsidiary to use their data. Some realtors in larger metropolitan areas say they have better local listing service options. “It would only take a few good-sized brokers in every community before these sites either drastically changed how they do business or went away altogether,” says Abbott.
But other industry insiders worry that realtors will lose business by pulling out of the aggregator sites. “All it takes is [brokers who don’t share data] losing a few listings and having a couple of their top-selling agents complain,” Larson says, and “they’ll cave.”
Phoenix realtor Jay Thompson has chosen to continue listing with the sites. “Good luck explaining your decision to not market a listing on high traffic sites,” he writes on his blog. “I can assure you that if a Phoenix area brokerage chooses to do that, then we will use their decision to our advantage.”
Abbott argues the opposite could happen — since he posted his video, he’s had 12 people who were interviewing for an agent to sell their home ask him about his company’s new policy. “We got all 12 of those listings,” he says. Calls to the firm, he says, have “gone through the roof.”

Cheap home prices draw in new buyers and bolstering recovery.

2012-02-29T10:49:00.000-08:00

U.S. home prices post decline

A key gauge of home values in the nation's largest cities fell in December to its lowest level since the start of the housing crisis in mid-2006.

Although a bottom in home prices doesn’t appear imminent, several economists pointed to small improvements in the housing market -- including upticks in sales and new construction -- that could support a recovery.

Home values in big U.S. cities have fallen to their lowest levels since the start of the housing bust, but cheap prices could draw in new buyers and bolster the chances of recovery, economists say.

A key gauge of home values in the nation's largest cities fell in December to its lowest level since the start of the housing crisis in mid-2006 — the latest evidence that real estate prices remain in a funk.

The Standard & Poor's/Case-Shiller index of 20 American cities, released Tuesday, fell 1.1% in December from November and 4% from December 2010. Eighteen out of the 20 cities tracked by the index posted declines while Atlanta, Las Vegas, Seattle and Tampa, Fla., saw average home prices hit new lows.

Although a bottom in prices doesn't appear imminent, several economists pointed to small improvements in the housing market — including upticks in sales and new construction — that will start to support a recovery.

In addition, they say, values aren't in a free fall similar to the one that emerged after the subprime mortgage crisis and credit crunch of 2007. The drop in prices is largely because of foreclosures, economists said, which continue to ravage certain hard-hit neighborhoods while places with fewer distressed sales improve.

"If you are not in a neighborhood where foreclosures are a big problem, it's very likely that home prices are not dropping," said Patrick Newport, U.S. economist for IHS Global Insight. "They are stabilizing or rising."

Celia Chen, a housing economist at Moody's Analytics, drew the distinction between a recovery in home sales and new construction, which appears to have begun, and an improvement in prices, which remains elusive and will probably continue to remain so through much of the year.

"Enough homes are in the foreclosure pipeline to keep house prices falling through much of this year," Chen said.

There are other indicators that may support a housing recovery, including increased household growth, record-high affordability, a tighter supply of homes on the market, low interest rates, a pickup in sales of previously owned homes and an increase in the number new units started by builders.

Housing remains road-blocked by persistent unemployment, the sheer number of foreclosures, the difficulties buyers are having securing mortgages and the large share of homes underwater, in which the owners owe more than the homes are worth.

"In terms of prices, the housing market ended 2011 on a very disappointing note," said David M. Blitzer, chairman of the index committee at S&P Indices. "While we thought we saw some signs of stabilization in the middle of 2011, it appears that neither the economy nor consumer confidence was strong enough to move the market in a positive direction as the year ended."

All the California cities in the index posted declines from the previous month. Los Angeles, San Diego and San Francisco fell 1.1%, 0.7% and 0.8%, respectively. Only two metro areas posted monthly gains: Miami, up 0.2%, and Phoenix, up 0.8%.

A separate, national index published quarterly by S&P Case Shiller fell 3.8% during the fourth quarter of 2011 and was down 4% compared with the fourth quarter of 2010.

Investors shrugged off the news of a new housing-price low and pushed U.S. stocks higher. The Dow Jones industrial average extended its recent gains to close past the 13,000 mark for the first time in four years.

"Although the rate at which house prices are falling accelerated at the end of last year, it may only be a few more months before the decline seen over the last five years comes to an end," said Paul Dales, senior U.S. economist at Capital Economics. "We expect prices will be broadly unchanged this year and maybe next."

The severity and length of the housing depression — now more than five years in the offing — has surprised forecasters. Warren Buffett, the billionaire investor, said over the weekend that he had been "dead wrong" predicting that a recovery in housing would have begun by now.

But even the biggest pessimists have softened their outlooks. Robert Shiller, a professor at Yale University and co-creator of the index who raised eyebrows last year with comments that home prices could experience severe declines, said Tuesday that his outlook had grown slightly more optimistic.

Theviews, opinions, positions or strategies expressed by the authors and thoseproviding comments or external internet links are theirs alone, and do notnecessarily reflect the views, opinions, positions or strategies of FirstCapital, we make no representations as to accuracy, completeness, current,suitability, or validity of this information and will not be liable forany errors, omissions, or delays in this information or any losses, injuries,or damages arising from its display or use. Anyinformation provided does not constitute an offer or a solicitation to lend.Providing information to purchase does not guarantee a loan approval. All registeredtrademarks, copyright, images, or other items used are property of theirrespective owner and are used for editorial purposes only.

First Capital Mortgage is a subsidiary of PHH Home Loans LLC, adirect lender, Dept. of Corporations file #413-0713

Visit FirstCapital Online or call: 310-458-0010

Home prices hit new lows

2012-02-28T12:17:00.000-08:00

Home prices continue to plummet in many parts of the U.S., including Los Angeles County. The Antelope Valley has been especially hard hit.

A key gauge of home prices in the nation's largest cities fell in December to its lowest level since the start of the housing crisis in mid-2006.
The Standard & Poor's/Case-Shiller index of 20 American cities fell 1.1% from November to December and 4% from December 2010. Eighteen out of the 20 cities tracked by the index posted declines and Atlanta, Las Vegas, Seattle and Tampa,Fla., each saw average home prices hit new lows.

“In terms of prices, the housing market ended 2011 on a very disappointing note,” said David M. Blitzer, chairman of the index committee at S&P Indices. “While we thought we saw some signs of stabilization in the middle of 2011, it appears that neither the economy nor consumer confidence was strong enough to move the market in a positive direction as the year ended."

All of the California cities in the index posted declines from the prior month. Los Angeles, San Diego and San Francisco fell 1.1%, 0.7% and 0.8%, respectively. The drop continues a slide that began last year as sales weakened and the jobs picture remained bleak.

In December, Miami and Phoenix were the only two metro areas that posted monthly gains, up 0.2% and 0.8%, respectively.
A separate, national index published quarterly by S&P Case Shiller, also released Tuesday, showed deterioration in home values. The national composite fell by 3.8% during the fourth quarter of 2011 and was down 4.0% versus the fourth quarter of 2010.

The steep drops indicate that the housing market likely began 2012 in decline, as the broader economic recovery was not enough to lift home values. Home prices are now below their low hit in April 2009 -- reached during the depths of the financial crisis.

[Updated 7:53 a.m., Feb. 28: Robert Shiller, a professor at Yale University and co-creator of the index, said in a conference call Tuesday he was slightly more optimistic about housing’s future than he was a year ago, “but not that optimistic.”

“We are in a situation where a lot of people think, long-term, this is great, home prices are low,” Shiller said. “But somehow they think in the short-run … we are still in a holding pattern.”

Karl E. Case, the other co-creator of the index and a professor at Wellesley College, said he was more optimistic that the housing market would begin to improve given that, according to Census data, more U.S. households are being created, meaning there will be more demand for housing. If demand remains high -- and supply relatively low -- the housing market should begin to improve, he said.

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4 Ways to Cut Your Home Costs in 2012

2012-02-27T13:21:00.000-08:00

January labor reports reveal that the U.S. economy added 243,000 jobs during the first month of 2012. This is a 133,000-person increase from the hiring numbers of January last year.

This data implies that many jobless Americans have indeed, gotten back to work. Yet, recent money-saving trends adopted by many homeowners show that Americans are still aiming to stretch their hard-earned money further than they did in previous years. With this in mind, I present to you four ways to cut your home costs in 2012.

Cut cable service and add Apple TV.

Digital media receivers, such as Apple TV or Roku Player, allow users to play digital content on computers or high-definition televisions.

The reason many homeowners are choosing to cut expensive cable service plans in favor of Smart TV is simply the competitive viewing selection it provides without a monthly bill!

Through the use of Apple TV, Bluray Player or Roku Player, users can view digital content originating from the following wide range of media:

Netflix
MobileMe
Flickr
YouTube
iTunes Store
NHL GameCenter
MLB.tv
NBA League Pass

The main complaint from Apple TV users is the fact that you can’t watch live sports on the device. However, other Apple TV users stated that going to a restaurant or bar to watch a live sporting event is both more enjoyable and less expensive than paying a high cable bill every month.

Cancel your landline in favor of a smartphone.

With the current rate technology is advancing, it’s easy to understand how the home phone line is becoming more synonymous with the bag phone of 1992 with each year that passes.

Landlines have gotten a bad rep recently due to their involvement with expensive cable bundle packages that have persuaded many cash-strapped people to do away with cable and landlines all together.

The endless possibilities that apps have given smartphone users may have provided the perfect storm for the extinction of the home phone land line.

Clip coupons and cut cooking costs.

There are a number of Americans who have mastered the art of cutting and using coupons. These people plan ahead to the point where they rarely pay full price for anything on their grocery lists.

Here are a few tips for the novice coupon cutter:

Make a grocery list.
Thumb through the grocery ads that appear in your mailbox or daily paper.
Do a quick Google search to determine what items from your list are on sale at the local grocery store.
Print or clip the coupons.
If possible, delay buying items on your list that are not currently on sale.
Monitor and record your savings.

Couponing is a growing trend with frugal homeowners. With a newspaper and a pair of scissors, you can start cutting money off your weekly expenses today!

Buy energy-efficient products to save on utility costs.

There are many energy-efficient household products such as energy-saving light bulbs, mica thermic space heaters, and solar radio systems that may lower your monthly utility bills.

While the higher cost of an energy-efficient furnace may persuade you to reconsider your options, reports show that these furnace owners can save $787 annually on utility costs.

Websites such as Buy Energy Efficient assist frugal homeowners in lowering their monthly utility bills by informing them about the wide range of energy-efficient household products available.

The economy is recovering, but if your home is full of energy vampires, your personal finances could get sucked dry.

Of course, I would be remiss if I didn’t let you know of another great way to save on home costs: refinancing. Rates are still silly low, so find out which refinance option is best for you, and your hard-earned money could last a lot longer.

Theviews, opinions, positions or strategies expressed by the authors and thoseproviding comments or external internet links are theirs alone, and do notnecessarily reflect the views, opinions, positions or strategies of FirstCapital, we make no representations as to accuracy, completeness, current,suitability, or validity of this information and will not be liable forany errors, omissions, or delays in this information or any losses, injuries,or damages arising from its display or use. Anyinformation provided does not constitute an offer or a solicitation to lend.Providing information to purchase does not guarantee a loan approval. All registeredtrademarks, copyright, images, or other items used are property of theirrespective owner and are used for editorial purposes only.

First Capital Mortgage is a subsidiary of PHH Home Loans LLC, adirect lender, Dept. of Corporations file #413-0713

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UPDATE - US home resales at 1-1/2 yr-high, supply falls

2012-02-23T10:36:00.001-08:00

* Home sales up 4.3 percent to 1-1/2 year-high

* Inventory of homes falls to 7-year low

* Median home price lowest in 10 years

WASHINGTON, Feb 22 (Reuters) - U.S. home resales rose to a 1-1/2-year high in January, pushing the supply of properties on the market to the lowest level in almost seven years in a hopeful sign for the housing sector.

The National Association of Realtors said on Wednesday existing home sales increased 4.3 percent to an annual rate of 4.57 million units last month, the fastest pace since May 2010.

It was the latest indication the housing market may be coming off the floor. While economists attributed some of the rise to unseasonably warm winter weather, they also said it signaled genuine improvement.

Sales were up across all four regions of the country, with the West recording the biggest gain -- an 8.8 percent increase.

"At least some of the improvement in the last few months could have reflected milder winter weather, but for the most part, it seems that the housing sector may have turned the corner," said Guy Berger, an economist at RBS in Stamford, Connecticut

The tenor of the report was weakened somewhat by a sharp downward revision to December's sales data to show only a 4.38 million unit sales rate rather than the previously reported 4.61 million unit pace.

A brightening economic outlook, marked by a strengthening labor market and buoyant factories, is giving the housing market some lift. Confidence among homebuilders is near five-year highs and they are breaking more ground on new housing projects.

Residential construction is expected to contribute to growth this year for the first time since 2005.

Robert Toll, executive chairman of luxury homebuilder Toll Brothers, welcomed that progress even as his company announced a surprise quarterly loss on Wednesday.

"Since the new home industry is coming off several years of historic low levels of production, we are encouraged by the recent improvement," he said in a statement.

The data did little to lift U.S. stock market sentiment, with shares ending down after weak data on European business activity. Prices for U.S. government debt rose on concerns Greece might not be able to avert a messy default even with a fresh bailout.

The dollar rose against a basket of currencies.

INVENTORY DWINDLING

The Federal Reserve, which has suggested a number of ways other policymakers could step in to help the beaten-up market, is considering purchasing more mortgage-backed securities to drive mortgages rates even lower.

But some economists are skeptical that would do much good.

"I don't think the problem in the mortgage market is high interest rates or availability of liquidity. The problem is lack of jobs and very strict lending standards," said Sung Won Sohn, an economics professor at California State University Channel Islands.

Distressed properties, foreclosures and short sales, which typically occur at deep discounts, accounted for 35 percent of overall sales last month, up from 32 percent in December.

A third of pending existing home sales contracts were canceled, the NAR said. Investors bought 23 percent of homes in January, with first-time buyers accounting for a third of the transactions.

"We expect the spring selling season to show some improvement, but we believe it risks disappointing relative to market expectations," said Michelle Meyer, a senior economist at Bank of America Merrill Lynch in New York. By Lucia Mutikani

The views,opinions, positions or strategies expressed by the authors and those providingcomments or external internet links are theirs alone, and do notnecessarily reflect the views, opinions, positions or strategies of FirstCapital, we make no representations as to accuracy, completeness, current,suitability, or validity of this information and will not be liable forany errors, omissions, or delays in this information or any losses, injuries,or damages arising from its display or use. Any informationprovided does not constitute an offer or a solicitation to lend. Providinginformation to purchase does not guarantee a loan approval. All registered trademarks, copyright,images, or other items used are property of their respective owner and are usedfor editorial purposes only.

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Cost-conscious consumers cut new-home prices

2012-02-17T16:14:00.000-08:00

If you are looking for some long-term effects of a five-plus-year real estate downtown, look no further than new-home prices.

Not that it hadn’t been anticipated, considering that the bulk of foreclosures have been concentrated in new-home centers such as Phoenix, Las Vegas, California and Florida. Bank-owned and short sales are also highest in those states, and that chisels away at prices.

It appears, however, to just more than price declines.
Richard Palacios Jr., a senior research analyst with John Burns Real Estate Consulting, reports that since new home prices peaked in 2007, new single-family sales of more than $500,000 have been more than cut in half, dropping from 13 percent to just 6 percent of all new home transactions.
During the same period, sales of under $200,000 have risen from 33 percent to 42 percent of transactions, he said. In fact, sales of homes priced under $300,000 now account for roughly 75 percent of all new single-family transactions.

Palacios points out that price declines and a shift to smaller homes played a role in this change, but consumer attitudes have shifted too.

“Our surveys and our consulting work show that today's buyer is frequently very focused on affordability, and this broad macro theme will continue to play itself out in the new home space during 2012, he said.

Although buyers have migrated to smaller, more affordable homes, Palacios doesn't think this is bad news for the highest-end builders — in fact, there is far less competition for new luxury homes than there used to be.

“Also, luxury home buyers are current homeowners who frequently have little urgency to buy and the majority of them have plenty of equity in their current home,” he said. “While affordable entry-level homes have clearly taken market share over the last few years, we expect luxury homes to increase in numbers as the economy improves.” By: Alan J. Heavens

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Can't We Learn to Stop Worrying and Love Mass Refinancing?

2012-02-16T08:11:00.000-08:00

Letting homeowners refinance at historically low rates would conjure billions of dollars of relief without the approval of a do-nothing Congress. What's the downside

Last week's $26 billion deal between the government and banks accused of mortgage fraud was the most significant effort to hold financial firms accountable for malpractice in the housing bust. The feds plan on using most of the money as a life-raft for homeowners who are underwater, or owing more on their mortgage than the value of the house.

But the deal is insufficient to address the housing crisis, and the U.S. economy still needs massive mortgage refinancing to flush out the worst of our debt overhang.

Since August, rumors have been flying around Washington that the White House was this close to putting out a plan to massively expand mortgage refinancing through its government-sponsored enterprises, such as Fannie Mae. This plan would let more homeowners refinance at historically low rates. Like waving a magic stimulus wand, it would conjure billions of dollars of relief for homeowners without Congress' approval.

WINNERS AND LOSERS

Last year, the administration updated the Home Affordable Refinance Program, or HARP, to allow borrowers to take advantage of ultra-low interest rates by refinancing their Fannie and Freddie-backed mortgages. In the State of the Union, Obama laid out a plan that would allow underwater homeowners whose mortgages were not owned by Fannie Mae or Freddie Mac to refinance into loans backed by the Federal Housing Administration.

The White House plan looks unlikely to pass, as House Speaker John Boehner has strongly criticized it. But if the White House is able to pass its plan -- or convince the Federal Housing Finance Administration, which oversees Fannie and Freddie to massively expand its current refinancing programs -- it would be a huge boon for homeowners, at a loss for some investors. (The money has to come from somewhere, right?)

Any expansion of refinancing means a transfer of money away from investors so that homeowners' monthly mortgage payments go down and their ability to save or spend goes up.

Refinancing leads to a loss split up between different types of mortgage investors, but the effect on investors' income is likely to diluted (I'll explain shortly), while the permanent reduction in mortgage payments for homeowners is like an immediate, permanent tax cut. Homeowners win, a lot. Investors lose, a little.

How would the plan stimulate? Simply, it would push dollars - hundreds of billions of dollars, potentially -- into the hands of people more likely to spend it. As Joe Gagnon, a former Fed economist, has pointed out, homeowners would likely spend more of their new income than investors would cut back due to their lost income.

DEALING WITH THE LOSSES

When a mortgage is bundled and securitized with other mortgages, the holder of that security benefits from the stream of mortgage payments. If that stream of money changes - e.g. if a homeowner refinances by taking out a new mortgage at the lower prevailing interest rate - the investor suffers.

In the president's plan, only those who have been current on their mortgages for the past six months will be eligible for refinancing. So, the investors who will be affected by refinancing are exactly those investors that are getting a steady stream of payments at interest rates higher than the ones prevailing for new mortgages.

Who are these losers? They are the holders of private (or non-agency) mortgage-backed security. Pension funds, retirement plans, and mutual funds would take a big hit because they own an outsized share the particular securities likely to be impacted by the president's plan.

According to data compiled by the Securities Industry and Financial Markets Association SIFMA, the non-agency MBS market that would be targeted by the president's new plan is worth $1.3 trillion. Insurance companies and pension funds hold some 29%; the GSEs and Federal Home Loan Banks own 22%, and foreigners hold 18%. (Another loser on the list would be big banks, for whom the White House has proposed a fee to pay for the plan.)

Many advocates for refinancing want the government to stick with the loans that Fannie and Freddie already guarantee -- some 70% of the mortgages nationwide. HARP already helps underwater homeowners whose loans are owned by the GSEs, and it has successfully refinanced nearly 1 million mortgages. But the impact has still been way too small. Last June, more than three-quarters of homeowners with 30-year, fixed rated mortgages were still paying rates greater than 5% even though they could refinance at 4%.

Won't the loss of investment income to Fannie, Freddie, and the Fed mean some loss to the taxpayer? Maybe. But it won't affect the economy much right now. Two economists at the New York Fed have pointed out that prepayment on bonds held by the government will not affect the government's domestic spending right now. Additionally, the Fed intervened in the agency MBS market precisely in order to bring down mortgage rates and stimulate housing. Refinancing is one of the "channels" by which the Fed's low interest rate policies stimulate the economy and that channel has been blocked by hurdles in the refinancing process.

What about the rest of the market: the savings institutions, bank-holding companies, real estate trusts, pensions funds, and insurance companies who hold roughly half of agency MBS? In fact, these investors have benefited from a remarkable windfall. Homeowners who would normally be taking advantage of extremely low interest rates can't do so, because they've lost too much value on their homes to refinance. This suffering among homeowners has, morbidly, been good for investors. But it seems both morally questionable and economically inefficient to allow them to get away with this windfall forever while the economy muddles through a non-recovery.

Refinancing might sound like a dangerous bazooka to fix the housing crisis. In fact, it is, simply, a sound solution.

The views,opinions, positions or strategies expressed by the authors and those providingcomments or external internet links are theirs alone, and do notnecessarily reflect the views, opinions, positions or strategies of FirstCapital, we make no representations as to accuracy, completeness, current,suitability, or validity of this information and will not be liable forany errors, omissions, or delays in this information or any losses, injuries,or damages arising from its display or use. Any informationprovided does not constitute an offer or a solicitation to lend. Providinginformation to purchase does not guarantee a loan approval. All registered trademarks, copyright,images, or other items used are property of their respective owner and are usedfor editorial purposes only.

FirstCapital Mortgage is a subsidiary of PHH Home Loans LLC, a direct lender, Dept.of Corporations file #413-0713

Visit First Capital Onlineor call: 310-458-0010

California economic reports forecast modest growth

2012-02-15T09:39:00.000-08:00

The L.A. County Economic Development Corp. sees California adding nearly half a million jobs over the next two years. Meanwhile, S&P raises the state's outlook.

Reporting from Sacramento—

Things are looking up for California's beleaguered economy as the recovery from the recession hits a period of slow, modest growth this year and next, according to two economic reports.

Over the next two years, the state is poised to add nearly half a million jobs and drive the current 11.1% unemployment rate down to nearly 10%, the Los Angeles County Economic Development Corp. said in an annual forecast scheduled to be released Wednesday.

And on Tuesday, financial rating company Standard & Poor's upgraded its outlook on California's ability to repay its debts to "positive" from "stable."

"We think the state is poised for credit improvement — and potentially a higher rating," S&P said.

An upgrade in the state's credit rating would be "a powerful vote of confidence," Gov. Jerry Brown said.

California's improved financial condition, however, is based partly on continued budget cutting, which has fallen heavily on government jobs and services. The state lost 85,500 local, state and federal government jobs since the start of the recession in December 2007.

For Los Angeles County, the recovery is expected to come at "a painfully slow pace," taking years to make up about 300,000 private-sector and government jobs lost since the start of the recession, according to the forecast.

Governments in the county are expected to shed 3,200 jobs this year, according to the economic development company, a nonprofit that does economic research and promotes local business growth.

In the private sector, the construction industry is expected to drop 3,300 jobs this year. But the losses in government and construction jobs should be offset by bigger gains in other industries, giving the county a net of 15,600 new jobs this year, the report said.

The biggest gains in the county should be in health services, with 5,400 net new jobs; education, with 4,800; information, including television and film production, with 4,100; and leisure and hospitality, with 3,900.

International trade through the ports of Los Angeles and Long Beach and Los Angeles International Airport jumped late last year and is ready to expand along with the national economy. But that projection would hold true only if there were no international political or economic crisis in Europe, the Middle East or elsewhere, the report said.

Barring an international meltdown, the job picture for Los Angeles County should brighten next year with the creation of about 22,700 jobs. The county created more than 10 times that many jobs in 2006, the year before the recession started.

"Los Angeles County seems to be moving, but it's improving at a slower pace than the state as a whole and the rest of the nation as a whole," said the principal author of the report and chief economist at the development company, Robert Kleinhenz.

This year, the country's economy should grow 1.1% and the state's 1.5%, while Los Angeles County's growth is forecast to be only 0.6%, he said.

Orange County, the first in Southern California to return to economic growth, in 2010, will lead the transition from recovery to a slow, steady expansion, fostered by its universities, high-tech industries and tourist attractions, the report said.

Residential real estate in Orange County, particularly for lower-priced condominiums, could begin to turn around, "with prices bottoming out and a small upswing in sales and new home construction," the report said.

The distressed Inland Empire of San Bernardino and Riverside counties showed its first signs of weak growth in the last four months of 2011 but still is hampered by a large number of foreclosures, falling home values and joblessness projected to remain at above 12% this year.

Home construction could take years to revive in the Inland Empire. But in the meantime, an uptick in imports fueled by a boost in retail sales could bring more jobs to the burgeoning warehouses, logistics operations and distribution centers there.

"For the Inland Empire, patience will continue to be the watchword, as the region is not expected to see the pre-recession glory days for at least two to three years," the report said.

Ventura County, with its mix of high-value agricultural crops and high-tech industries, should lag behind the rest of the state in getting back on its feet. Residential real estate will be a drag for at least the next few years, the report said.

"We're moving at such a slow pace that, at times, it looks like we're not gaining any ground," Kleinhenz said. "But if we look back at the end of the year, we'll see that the economy has improved." By Marc Lifsher, Los Angeles Times February 15, 2012, 12:01 a.m. marc.lifsher@latimes.com

The views,opinions, positions or strategies expressed by the authors and those providingcomments or external internet links are theirs alone, and do notnecessarily reflect the views, opinions, positions or strategies of FirstCapital, we make no representations as to accuracy, completeness, current,suitability, or validity of this information and will not be liable forany errors, omissions, or delays in this information or any losses, injuries,or damages arising from its display or use. Any informationprovided does not constitute an offer or a solicitation to lend. Providinginformation to purchase does not guarantee a loan approval. All registered trademarks, copyright,images, or other items used are property of their respective owner and are usedfor editorial purposes only.

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Seven Staging Secrets From a Pro

2012-02-15T08:14:00.000-08:00

I recently heard some great tips from Susanita de Diego, broker/owner with Coldwell Banker Your Calgary Home Selling Team; about simple staging tips that could help boost a home’s appeal and give homeowners a competitive edge when selling their home. Your own agent will likely suggest a lot of similar things, so I wanted to share so you would gain some insight into why these ideas make sense.

Stage rooms with one purpose. Rooms that have many uses can confuse or even deter homebuyers, so staging rooms with one purpose is vital. Determine who your most likely target market will be, whether it’s young professionals with no kids, families, or even empty nesters. Then present your areas to fit their needs.

If you’ve been using a room as a guest room/kids playroom/home office, pick the one use that best suits your buyers.

Tackle the easy “do-it-yourself” projects. Spruce up your home by updating kitchen and bathroom fixtures and updating cabinet hardware. Add a fresh coat of paint in a neutral palate that won’t distract from your home’s features.
Focus on the living areas. Potential buyers should envision themselves entertaining friends and family in the living areas of the home. Make sure those areas feel as spacious as possible by removing any unnecessary furniture to allow for easy traffic flow.
Make sure the master bedroom appeals to both sexes. Remember that the master bedroom is a room that a couple will be sharing, so the décor should appeal to both sexes. It should feel like a calm and peaceful refuge, not a frilly boudoir. Remove any feature that seems too gender-specific and paint the walls a neutral colour.
De-clutter & depersonalize. Buyers want to picture their family living in a home, not the previous owners. You’re going to be moving anyway, so start now by packing away family photos, personal mementos knickknacks. Store away valuables under lock and key. Some property owners find they need to store some of their belongings off premises to create an open feel.
Furnish the home, but don’t overdo it. While an empty house may look spacious, it’s often hard for buyers to visualize their belongings in a home if they’re just looking at bare walls and floors. Leave the basic components that allow the viewer to define each room.
Don’t forget the outside spaces. First impressions can play a key role in a consumer’s decision-making process, so don’t neglect your home’s curb appeal. Make sure the home’s exterior is inviting by trimming the bushes, mowing the lawn and painting faded window trim. Buyers will appreciate the seller’s efforts with the yard work, and will tend to assume that the same attention to detail has been devoted throughout the property.

The views,opinions, positions or strategies expressed by the authors and those providingcomments or external internet links are theirs alone, and do notnecessarily reflect the views, opinions, positions or strategies of FirstCapital, we make no representations as to accuracy, completeness, current,suitability, or validity of this information and will not be liable forany errors, omissions, or delays in this information or any losses, injuries,or damages arising from its display or use. Any informationprovided does not constitute an offer or a solicitation to lend. Providinginformation to purchase does not guarantee a loan approval. All registered trademarks, copyright,images, or other items used are property of their respective owner and are usedfor editorial purposes only.

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What factors go into refinancing?

2012-02-14T09:54:00.000-08:00

Dear Don,
I have $98,000 left on a home mortgage. It's a 30-year fixed at 5.5 percent. I'm nine years into this mortgage. Is refinancing a good option? I plan to be in my house at least another five years.
I'm also concerned about being able to come up with the costs of the refinancing. I am worried about starting a 30-year mortgage all over again. However, my goal is to reduce my monthly payments.
-- Larry Lower

Dear Larry,
Refinancing isn't just about capturing interest savings. By extending the term of your mortgage, especially if you can get a lower interest rate, you can reduce your monthly payment. That can help you live within your means and not run up credit card balances to finance current expenses.
If you were going to be in the home for 30 years, you could wind up paying more in total interest expense on the refinancing versus staying in the current loan. However, you don't have a 30-year horizon, so you'll be out of the mortgage when you sell your home.

If you have enough equity in your home, you can tap that equity to pay for the closing costs. Basically, that means rolling the closing costs into the loan balance. If closing costs are $4,000, you'd borrow $102,000 when you refinance. Alternately, the lender could bake the closing costs into the interest rate on the loan.

There are costs other than closing costs that need to be paid when you close on a refinancing. One of the big ones is per diem interest. That's the interest expense on the loan from closing to the first day the next month.

You stated your goal, and it isn't to capture interest savings. That said, with good credit and a solid equity position in your home, you should be able to reduce the interest rate on your mortgage by enough to recoup the closing costs over your five-year horizon.
By Dr. Don Taylor, Ph.D., CFA, CFP • Bankrate.com

The views,opinions, positions or strategies expressed by the authors and those providingcomments or external internet links are theirs alone, and do notnecessarily reflect the views, opinions, positions or strategies of FirstCapital, we make no representations as to accuracy, completeness, current,suitability, or validity of this information and will not be liable forany errors, omissions, or delays in this information or any losses, injuries,or damages arising from its display or use. Any informationprovided does not constitute an offer or a solicitation to lend. Providinginformation to purchase does not guarantee a loan approval. All registered trademarks, copyright,images, or other items used are property of their respective owner and are usedfor editorial purposes only.

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Visit First Capital Onlineor call: 310-458-0010

Bankrate: Mortgage Rates Up Slightly

2012-02-10T08:06:00.000-08:00

PRNewswire -- Mortgage rates moved slightly higher this week, with the average 30-year fixed mortgage rate rising to 4.14 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.32 discount and origination points.

The average 15-year fixed mortgage increased to 3.36 percent, while the jumbo 30-year fixed mortgage held at a record low of 4.55 percent. The average 5-year and 7-year adjustable mortgage rates were up this week, to 3.05 percent and 3.27 percent, respectively.

Despite the monthly employment report showing much-improved job growth, mortgage rates were only slightly higher. The uncertainty surrounding the European debt crisis continues to govern the movement in rates, or the lack thereof, and holds sway over evidence of a continued rebound in the U.S. economy. The Federal Reserve's pledge to hold short-term interest rates steady until at least late 2014 is also helping to keep a lid on mortgage rates.

The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.14 percent, the monthly payment for the same size loan would be $971.04, a difference of $270 per month for anyone refinancing now.

SURVEY RESULTS
        30-year fixed: 4.14% -- up from 4.12% last week (avg. points:0.32)
        15-year fixed: 3.36% -- up from 3.34% last week (avg. points:0.31)
        5/1 ARM: 3.05% -- up from 3.02% last week (avg. points:0.32)

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

For a full analysis of this week's move in mortgage rates, go to http://www.bankrate.com/mortgagerate

The survey is complemented by Bankrate's weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. The panelists don't expect mortgage rates to get any lower, with no one predicting further declines in the coming week. But that doesn't mean big changes are in store, as 64 percent expect mortgage rates to remain more or less unchanged. The remaining 36 percent forecast an increase over the next seven days.

For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI

About Bankrate, Inc. /quotes/zigman/5437527/quotes/nls/rate RATE +0.50%

Bankrate is a leading publisher, aggregator and distributor of personal finance content on the Internet. Bankrate provides consumers with proprietary, fully researched, comprehensive, independent and objective personal finance editorial content across multiple vertical categories including mortgages, deposits, insurance, credit cards, and other categories, such as retirement, automobile loans, and taxes. Bankrate aggregates rate information from over 4,800 institutions on more than 300 financial products. With coverage of nearly 600 local markets in all 50 U.S. states, Bankrate generates over 172,000 distinct rate tables capturing on average over three million pieces of information daily. Bankrate develops and provides web services to over 75 co-branded websites with online partners, including some of the most trusted and frequently visited personal finance sites on the Internet such as Yahoo!, AOL, CNBC and Bloomberg. In addition, Bankrate licenses editorial content to over 100 newspapers on a daily basis including The Wall Street Journal, USA Today, The New York Times, The Los Angeles Times and The Boston Globe. For more information contact: Kayleen Yates :SOURCE Bankrate, Inc.

Theviews, opinions, positions or strategies expressed by the authors and thoseproviding comments or external internet links are theirs alone, and do notnecessarily reflect the views, opinions, positions or strategies of FirstCapital, we make no representations as to accuracy, completeness, current,suitability, or validity of this information and will not be liable forany errors, omissions, or delays in this information or any losses, injuries,or damages arising from its display or use. Anyinformation provided does not constitute an offer or a solicitation to lend.Providing information to purchase does not guarantee a loan approval. All registeredtrademarks, copyright, images, or other items used are property of theirrespective owner and are used for editorial purposes only.

First Capital Mortgage is a subsidiary of PHH Home Loans LLC, adirect lender, Dept. of Corporations file #413-0713

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What The Mortgage Relief Plan Would Do For Homeowners

2012-02-09T07:45:00.000-08:00

After more than a year of wrangling over various mortgage relief proposals, influential state leaders seem close to adopting a plan that Pres. Obama announced Feb. 1. Attorney General Eric T. Schneiderman of New York and California’s attorney general, Kamala Harris have indicated they are closer to agreement than in the past.

There are two important elements of the plan and details of both have been a subject of fierce disagreement. One, which could be worth about $25 billion, relates to how much money would be allocated to benefit homeowners and the specific relief they would receive. The other involves the power states would have to investigate past practices by banks, oversee future ones and monitor compliance with the plan.

If the plan is adopted, here’s what it would do for homeowners in specific situations.

Mortgage underwater but current with payments. More than 10 million homeowners in the U.S., due to a decline in home prices, owe more on their mortgages than their houses are worth. So even though interest rates have declined, they have been unable to refinance. The latest plan would enable people who have been making loan payments on time to save about $3,000 a year on their mortgage by refinancing with lower-interest loans guaranteed by the Federal Housing Administration.

Mortgage underwater and behind with payments. Depending on how many states sign on to the plan, up to $17 billion would be set aside to reduce principal for homeowners who are behind on their payments and owe more than their houses are currently worth. The plan would not guarantee a minimum amount of mortgage relief by state.

Victims of foreclosure fraud. The plan would provide payments of about $1,800 apiece to approximately 750,000 families that have been the victim of improper foreclosure practices. Since 2010, federal authorities have been investigating banks’ routine electronic notarization of documents being transferred from one financial institution to another as part of the foreclosure process–a practice known as robo-signing.

Compensation is likely to be offered to people who lost their homes between Jan. 1, 2008, and Dec. 31, 2011. They would not be required to give up their right to sue the financial institutions. Banks, among them the five biggest mortgage providers–Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial—want to be relieved of liability for future claims involving robo-signing.

In announcing the plan on Feb. 1, the President said he was “working to turn more foreclosed homes into rental housing.” So far such a plan is not contained in the pending proposal.

Deborah L. Jacobs, Forbes Staff

Theviews, opinions, positions or strategies expressed by the authors and thoseproviding comments or external internet links are theirs alone, and do notnecessarily reflect the views, opinions, positions or strategies of FirstCapital, we make no representations as to accuracy, completeness, current,suitability, or validity of this information and will not be liable forany errors, omissions, or delays in this information or any losses, injuries,or damages arising from its display or use. Anyinformation provided does not constitute an offer or a solicitation to lend.Providing information to purchase does not guarantee a loan approval. All registeredtrademarks, copyright, images, or other items used are property of theirrespective owner and are used for editorial purposes only.

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Rent Gets Pricier - 3 Ways to Take Advantage of a Rising Rental Market

2012-02-08T10:30:00.000-08:00

Rentals are booming right now, thanks to falling home prices and economic uncertainty. Real estate pros who don’t take advantage of this situation will miss out on money-generating opportunities.

Rising demand and a tightening supply is force both commercial and residential rents upward, and signs point to an increase in prices continuing over the next few years.

For one, office construction starts have been at their lowest level in more than 50 years, and on record. The lower starts means that there will be fewer spaces for businesses to rent, which will likely give landlords the upper hand in pushing rents even higher.

Residential renters can also expect an increase. Nationwide, rents in December 2011 increased 2.5 percent compared to December 2010, the Consumer Price Index shows. Rising rents have led to rents to reach their highest levels in 2011 since 2007, Reis Inc. reports.

“The supply side is so constrained because nobody has been building for years” due to the economy and the struggle developers face in getting loans, Mark Stapp, professor of real estate practice at Arizona State University, told MSNBC.com.

While rents have risen, the cost of home ownership has dropped. In fact, in 74 percent of major U.S. cities, renting may be more expensive than owning a home, a Trulia.com study has found.

Amid widespread falling values, a large shadow inventory, and general economic uncertainty, perhaps the biggest positive development in the real estate industry in the past year has been the booming rental market.

Vacancies in rental properties are falling, and this sector is the driving force behind housing starts right now. The swelling demand is also driving up rental costs, a trend expected to continue throughout this year.

While sales volume and housing values may improve nationally in 2012, it’s safe to predict that renting will continue to be a popular option for many people who remain wary of a home purchase — or who have left an upside-down mortgage.

For reasons ranging from personal income to quality of life in their communities, real estate professionals will almost always prefer the business of home sales over rentals. But that doesn’t mean there isn’t a silver lining of opportunity in the rising rental market.

Here are three ways to ride the rental wave:

1. Marketing

As the cost of renting has gone up, the affordability of housing — due to falling mortgage rates and home values — has gotten more favorable. What’s more, the Federal Reserve has publicly committed to a strategy of keeping lending rates low to facilitate economic recovery. Consequently, home ownership is considerably less expensive than renting in many markets, and probably will be for the foreseeable future.

If you’re operating in one of these markets, you can use the “buy vs. rent” argument in your promotions. For example, you could have brochures or print ads that say something like: “Still renting? You could be saving money every month and building long-term wealth! Contact me to find out how.”

2. Extra Income

Finding and negotiating leases for consumers can provide another income stream for real estate professionals whose primary focus is on homes. Many practitioners recoiled from these transactions in the past because the returns were not that great for the effort involved, especially compared to the standard commission on the sale of a house.

But new Web sites and online applications make it easier than ever to connect consumers with the rental properties they’re looking for. You can also establish relationships with local landlords and property management companies to get the inside track on what’s available for rent.

Plus, if you’re working with owners who can’t sell their house, you can suggest leasing it as an option. Given the state of the market, they might take you up on it. Additionally, multifamily property management and investment may be options to explore, depending on the amount of time, capital, and experience you have.

3. Consumer Relationships

The millennials, the oldest of whom are just now entering their 30s, still have fresh memories of the housing crash and financial crisis. Many of them are struggling to find any kind of work at all, let alone decent jobs. As such, most of them aren’t ready to be home owners yet. (To be fair, because of their age range, this would be the case even if the economy was performing well.)

The good news is that despite these current conditions, the millennials’ view of housing hasn’t really soured that much. Most of them still want to own a home someday. But if they don’t have the financial wherewithal or will to do so now, that means they’ll have to rent for at least a few more years.

That’s where you come in: By employing your customer service skills and expertise to help them find a rental property they like, you’ll be positioning yourself as their go-to agent when the time comes for them to buy a home.

Likewise, if former clients fall on hard times and need to find a new place to stay for a short while, you can assist them in their search for a rental. If they get back on their feet and want to purchase a house, you’ll be there for them again.

Even if you don’t make much from rental transactions, you’ll create opportunities for repeat — and hopefully more lucrative — business.

Conclusion

The rental market will likely benefit over the next couple of years from upheaval and insecurity in the broader economy, but the current boom will not last forever. Home ownership will enjoy a renaissance as soon as the economy stabilizes. Instead of just waiting for that to play out, you can be proactive and adapt to current conditions. If done right, taking advantage of the rental market will allow you to earn more now, and put you in a good position with clients when that turnaround comes. 2012 | By Brian Summerfield

Theviews, opinions, positions or strategies expressed by the authors and thoseproviding comments or external internet links are theirs alone, and do notnecessarily reflect the views, opinions, positions or strategies of FirstCapital, we make no representations as to accuracy, completeness, current,suitability, or validity of this information and will not be liable forany errors, omissions, or delays in this information or any losses, injuries,or damages arising from its display or use. Anyinformation provided does not constitute an offer or a solicitation to lend.Providing information to purchase does not guarantee a loan approval. All registeredtrademarks, copyright, images, or other items used are property of theirrespective owner and are used for editorial purposes only.

First Capital Mortgage is a subsidiary of PHH Home Loans LLC, adirect lender, Dept. of Corporations file #413-0713

Visit FirstCapital Online or call: 310-458-0010

Navigating the Appraisal Process: Tips to Ensure a Successful Appraisal

2012-02-07T16:05:00.000-08:00

So much has changed in our industry in recent years – the appraisal process has seen one of the biggest changes. Now, lenders use their own appraisal management company to handle the ordering and processing of the appraisal, which has eliminated much of the communication with the appraiser directly. But fear not, there are some things you can do.

There is much confusion about what you can and can’t do now with appraisers and the new federal regulations. It is well documented that builders, sellers and buyers argue that the appraisal management companies can sometimes magnify disparities in value. Generally, people don’t think to do any of these items below until after issues arise with an appraisal. Here are some helpful suggestions to minimize potential issues with value:

Be proactive and do your homework. You are the experts in your areas and the transaction needs your expertise when is comes to comps. Check comps and find out if any of them are on the radar for the appraiser to use. Then, dig in. Did those comps attribute to a lower sales price because of a distressed sale (foreclosure, short-sale, divorce, financial distress)? Are there any pocket listings that you can share with the appraiser? These are always useful as they won’t appear in the MLS. Maybe ask your title rep for a list of recent sales in the area that possibly didn’t make the MLS.
Ask questions before the appointment. You will have this opportunity when the appraiser calls to schedule the appointment. Is the appraiser local to the area? Does the appraiser know the agents in the area? Does the appraiser have a pulse on the market? If you have a concern, contact the mortgage professional handling the financing or the appraisal management company and request a more suitable appraiser.
Show up to the appointment. Bring those comps and a written explanation of each to the appointment and include any knowledge you have that is useful. Make a list of any improvements to the subject property, including dates and costs. Any ‘value-enhancing’ information here is critical. Highlight the positives of the subject property – this should be the easiest part!
Finally, if you get a finished appraisal report and the value is not supported by the appraiser’s analysis, examine the report for accuracy. Check the subject property data – square footage, bedrooms, bathrooms. Next, check the comps. Are they all accurate? You may need to call the agent involved with each transaction to verify details of the transaction, the size or any pertinent information pertaining to the sale that may have impacted the value. It is entirely possible that the appraiser was not aware of this information, which may result in adjustments that are favorable to the subject property’s report. by Tony Svoboda

Theviews, opinions, positions or strategies expressed by the authors and thoseproviding comments or external internet links are theirs alone, and do notnecessarily reflect the views, opinions, positions or strategies of FirstCapital, we make no representations as to accuracy, completeness, current,suitability, or validity of this information and will not be liable forany errors, omissions, or delays in this information or any losses, injuries,or damages arising from its display or use. Anyinformation provided does not constitute an offer or a solicitation to lend.Providing information to purchase does not guarantee a loan approval. All registeredtrademarks, copyright, images, or other items used are property of theirrespective owner and are used for editorial purposes only.

First Capital Mortgage is a subsidiary of PHH Home Loans LLC, adirect lender, Dept. of Corporations file #413-0713

Visit FirstCapital Online or call: 310-458-0010

President’s New Mortgage Plan and the Failure of HAMP

2012-02-07T13:22:00.000-08:00

Big government and corporations are careful to bury their failures in the fine print.

The Treasury Department released its January analysis of the Home Affordable Mortgage Program (HAMP) program. Readers must sift through a large number of statistics to find that only 933,000 homes mortgages have been permanently modified since April 1, 2009.

Politicians, the press and housing analysts attacked the results of the report as evidence that HAMP is a failure and that the president’s new follow-up plan will do no better.

The mystery about HAMP is why it has not worked. The Treasury’s January scorecard about the program does not say directly. The president’s new proposal indicates that he thinks one of the largest problems with the old plan was a lack of incentives for banks that hold mortgages. The FHA will guarantee new, refinanced mortgages under his latest program. That should make banks more open to resetting home loans. The risk of the process will be taken off of their books, which it was not entirely before.

The new plan lacks much detail, but its enemy likely will be bureaucracy, as is evident in HAMP’s results. Some 1,775,000 mortgages have been considered for modification, but are still “trial modifications.” That is a lot of “trials” for a program that has run for three years. Either the people with these mortgages were not creditworthy — which begs the question of how they got into the program originally — or they are caught in a process that is so slow it cannot move them quickly to permanent status.

The trouble with large national programs regulated by the federal government, and operated bank-by-bank and mortgage-by-mortgage, is the lack of an efficient way to push millions of home loans through such an unwieldy system. That may be at the core of the failure of HAMP.

The lack of permanent modification in the Treasury’s January report would seem to show that is true. It requires a look through the fine print to come to that conclusion, but buried there is the reason for the program’s failure, as well as the likely reason a new program will not work.
By: Douglas A. McIntyre
Read more: President’s New Mortgage Plan and the Failure of HAMP - 24/7 Wall St. http://247wallst.com/2012/02/07/presidents-new-mortgage-plan-and-the-failure-of-hamp/#ixzz1ljDoh2mL

Theviews, opinions, positions or strategies expressed by the authors and thoseproviding comments or external internet links are theirs alone, and do notnecessarily reflect the views, opinions, positions or strategies of FirstCapital, we make no representations as to accuracy, completeness, current,suitability, or validity of this information and will not be liable forany errors, omissions, or delays in this information or any losses, injuries,or damages arising from its display or use. Anyinformation provided does not constitute an offer or a solicitation to lend.Providing information to purchase does not guarantee a loan approval. All registeredtrademarks, copyright, images, or other items used are property of theirrespective owner and are used for editorial purposes only.

First Capital Mortgage is a subsidiary of PHH Home Loans LLC, adirect lender, Dept. of Corporations file #413-0713

Visit FirstCapital Online or call: 310-458-0010

9 Documents That Help You Reap Real Estate Tax Breaks

2012-02-06T13:11:00.000-08:00

Technically speaking, April 15th is tax day. But for Americans who expect a refund - including many homeowners who want to cash in on real estate-related tax perks - filing sooner holds the promise of getting that check in hand, stat.

If you count yourself in that number, here’s a handy guide for 9 pieces of paper you should be sure to round up as you prepare to file, in order to reap every penny of the tax rewards you’ve earned by virtue of owning a home.

Mortgage Interest Statement - IRS Form 1098. The meatiest real estate tax deduction on the books is the one that allows you to deduct 100 percent of the mortgage interest you paid in a year - including prepaid interest or points you might have paid at close of escrow, if you bought a home last year. By now, you should have received in the mail a Form 1098 from your mortgage lender that reports how much that interest totaled up to in 2011. If you itemize your taxes and claim a mortgage interest deduction, you must include this form with your tax form when you file.

(If you haven’t received yours yet, most lenders that have online account management services also post the form digitally in your secure account on the web. Just login like you would to make your monthly payment, and look for a notice that says you can now download your 2011 Form 1098.)

Property Tax Statements. In addition to deducting your mortgage interest, if you own a home you are eligible to deduct the property taxes you pay to your local city, county and/or state. You are not allowed to deduct some of the other miscellaneous expenses that some localities bundle up with the taxes they collect, like waste management and local assessments for things like street lighting, libraries and sidewalk construction. To get this deduction right, the best practice is to have your property tax statements at hand and make sure you’re only deducting what’s allowed.If you bought your home this year, it’s highly possible that you might not even have received a property tax statement yet - if that’s the case, look to #3, below.

Uniform Settlement Statement (HUD-1). If you bought or sold a home last year, right after closing you should have received a form called the HUD-1 Settlement Statement (hint: it’s usually on legal-sized paper and contains an accounting of credits and debits for you and your home’s buyer or seller). That form documents a number of line items which might help you out at tax time, including prepaid interest, the prorated property taxes you paid at closing, and closing costs like original fees and discount points. Some states offer tax credits for buying a foreclosure; check with your tax pro to find out if any such credits apply to you. If so, this statement might be your ticket to lower taxes.

And here’s another handy hint - if you can’t find your copy, you might have gotten it on a disk - and you can always email your real estate or escrow agent for a copy, as well.
Moving Expense Receipts. Moving expenses are tax deductible, if your move is closely related, both in time and in place, to the start of work at a new or changed job location and you meet the IRS’ time and distance tests. Long story short, your new home must be at least 50 miles farther from your new workplace than your old home was from your prior place of work, and you must work essentially full-time. So, if you bought or sold a home and moved in 2011, you’ll need to include receipts from expenses you incurred making the move (meals not included) in your tax prep paperwork.

Cancellation of Debt Statement - IRS Form 1099. Homeowners who lost a home to foreclosure, or divested of one by negotiating a short sale or deed in lieu of foreclosure with their lender might receive some version of Form 1099 from their lenders, charging them withincome in the amount of the mortgage debt that has been cancelled. You see, if you borrow money from someone, then they cancel the debt, that money you originally borrowed becomes income in the eyes of the IRS - and income is, as you know, taxable.

Under a number of conditions the amount forgiven is NOT taxable. There are defined exemptions. The legislation that defines this is called the mortgage debt relief act.

Debt Relief Act of 2007 when doing a short sale or foreclosure that the tax payer can be exempt from paying taxes on the deficiency on their 1st mortgage on an owner occupied first mortgage purchase money loan. Senate Bill 401 in California brings California in line with the federal regulations. Please be aware the IRS Debt Relief Act of 2007 expires on December 31 st 2012. It is important to consult a CPA or Tax Attorney who is knowledgeable about short sales and foreclosures.

The form for the cancellation of debt is IRS form 982 (Reduction of Tax Attributes due to Discharge of Indebtedness)http://www.irs.gov/pub/irs-pdf/f982.pdf

Utility statements for home office.For the average everyday homeowner who works at their employer’s place of business, utilities are not deductible (sorry!). But if there is a part of your home that is “regularly and exclusively” used for business, you might be able to claim that portion of your home as a home office, and deduct some portion of your home utilities and costs of painting andrepairs, as a result.Talk with your tax provider about what expenses are allowable to be claimed under your home office deduction, and whether or not you should take it.

Income and Expense statements from rental properties.Some of you have elevated the art of home ownership to a business! If you are a landlord, your tax situation is more complicated than that of the average bear; you’ll need to have complete income and expense statements when you put your tax returns together. It might actually behoove you to consult with a tax professional to make sure you are appropriately depreciating the property over time and not taking deductions that will expose you to the risk of audits, as well as to begin cultivating a long-term tax strategy for your real estate portfolio.

Contractor receipts from energy efficient home improvements.Under the Non business Energy Tax Credit, homeowners who have made improvements to their homes that fall within a list of energy efficient upgrades might be eligible to claim tax credits. If, during 2011, you installed energy efficient improvements such as insulation, new dual-paned windows and furnaces, you might be eligible for a tax credit of 10 percent of the cost of these upgrades, up to $500 - only $200 of which may be used to offset the cost of windows.

Mortgage Credit Certificate (MCC).If you own a home you bought in the last few years using a Mortgage Credit Certificate issued by a local housing authority, that Certificate may entitle you to a pretty hefty tax credit, based on a percentage of the mortgage interest you paid - on top of your mortgage interest deduction. MCCs apply as long as you live in the home and have a mortgage on it, but they only apply to defray taxes you actually owe - you can’t use them to get a refund. In any event, your mortgage credit certificate, if you have one, is a must-have document as you start putting your tax prep plan in play.

No matter what your tax situation is, if you own a home, it absolutely cannot hurt to get some professional help and advice to make sure you maximize your deductions, while minimizing your exposure to audit. And you should always consult with a tax attorney or certified public accountant regarding your tax liabilities and implications when you buy, sell, short sell or lose a home to foreclosure.

Theviews, opinions, positions or strategies expressed by the authors and thoseproviding comments or external internet links are theirs alone, and do notnecessarily reflect the views, opinions, positions or strategies of FirstCapital, we make no representations as to accuracy, completeness, current,suitability, or validity of this information and will not be liable forany errors, omissions, or delays in this information or any losses, injuries,or damages arising from its display or use. Anyinformation provided does not constitute an offer or a solicitation to lend.Providing information to purchase does not guarantee a loan approval. All registeredtrademarks, copyright, images, or other items used are property of theirrespective owner and are used for editorial purposes only.

First Capital Mortgage is a subsidiary of PHH Home Loans LLC, adirect lender, Dept. of Corporations file #413-0713

Visit FirstCapital Online or call: 310-458-0010

Mortgage rates hit a new low: 30-year fixed at 3.87%

2012-02-02T12:57:00.000-08:00

NEW YORK (CNNMoney) -- Just one day after President Obama detailed a proposal to enable millions of homeowners to refinance to record-low mortgage rates, those rates notched another record.

The 30-year, fixed rate fell to an average of 3.87% and the 15-year fixed dropped to 3.14% for the week ending February 2, both the lowest rates ever recorded in the 40-year history of the Freddie Mac Primary Mortgage Market Survey.

Frank Nothaft, vice president and chief economist at Freddie Mac said the rates fell to new lows after the fourth quarter gross domestic product report last week showed that the economy was growing at a rate that fell short of expectations.

The new record rates were "fortuitously timed" for the Obama administration to announce its latest refinancing proposal, said Greg McBride, senior financial analyst at Bankrate.com.

The plan, which requires approval by Congress, would allow borrowers who are current on their mortgage to save an average of $3,000 a year by refinancing into loans backed by the Federal Housing Administration.

Has Obama's housing policy failed?

"A lot more homeowners figure to get help over the next few months and that intersects nicely with these attractive rate terms," said McBride.

A year ago, mortgage borrowers were thrilled to get 30-year mortgages averaging 4.81%. These days they're finding ones nearly a full point lower.

The difference in the monthly payments between a 4.81% loan and a 3.88% is about $54 for every $100,000 borrowed. For someone with a loan balance of $250,000 that comes to more than $1,620 a year.

But many of the borrowers that Obama's plan would help currently have mortgages that carry interest rates of 6%, 7% or higher. If someone with a $250,000 mortgage carrying a 7% rate could refinance into a 3.88% loan, it would reduce payments by nearly $6,000 a year.

Such bargains figure to be around for awhile. In fact, they could get even better, according to McBride. Mortgage rates closely track bond yields, which plunged after the Federal Reserve said it expects to keep the Federal Funds rate near historic lows until late 2014.

The yield on a 10-year bond has nose-dived since the Fed's action, falling from 2.05% on Jan. 25 to 1.81% on Feb. 1.

Foreclosure's hardest hit neighborhoods

McBride said the difference between mortgage rates and bond yields, the spread, widens when yields decline. After yields stabilize again, the spread should shrink.
The usual spread is about 1.7 percentage points, according to Keith Gumbinger of HSH Associated, a provider of mortgage data and information. Currently, it's about 2 points.

If it dropped to the normal average of 1.7 points, the interest rate on a 30-year could plunge to 3.5%.

First Capital Mortgage is a subsidiary of PHH Home Loans LLC, a direct lender, Dept. of Corporations file #413-0713

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California REALTORS Applaud Obama's Proposal to Help Homeowners Refinance

2012-02-02T10:36:00.000-08:00

LOS ANGELES, Feb 02, 2012 (BUSINESS WIRE) -- The CALIFORNIA ASSOCIATION OF REALTORS ® (C.A.R.) applauds President Obama's proposal to help millions of underwater homeowners who are current on their mortgage to refinance.

"We are pleased that President Obama understands that a recovery in the housing market is essential to a recovery in the nation's economy," said C.A.R. President LeFrancis Arnold.

"Allowing homeowners whose homes are not backed by Fannie Mae and Freddie Mac to refinance could benefit additional homeowners who are struggling to keep up with their mortgage payments and help thousands of California families who are paying far above the current rate."

President Obama's proposal would help eligible, underwater homeowners who are current on their mortgage payments to refinance or modify their loan into safer, more affordable mortgages and take advantage of historically low interest rates. Under the plan, California households could save more than $3,000 a year, which could potentially have a positive impact on consumer spending.

The president's plan also included a Federal Housing Finance Administration pilot program to transition Real Estate Owned (REO) properties into rental housing. While C.A.R. recognizes that this plan may be beneficial in markets where REO inventory is high, the Association opposes its implementation in California, given low inventory and high demand, even in the state's hardest hit areas.

Leading the way... ® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS ® ( www.car.org ) is one of the largest state trade organizations in the United States, with more than 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

SOURCE: CALIFORNIA ASSOCIATION OF REALTORS ®

        
      CALIFORNIA ASSOCIATION OF REALTORS(R) 
        Lotus Lou, 213-739-8304 
        lotusl@car.org



The views, opinions, positions or strategies expressed by the authors and those providing comments or external internet links are theirs alone, and do not


necessarily reflect the views, opinions, positions or strategies of First Capital, we make no representations as to accuracy, completeness, current, suitability,


or validity of this information and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its


display or use. Any information provided does not constitute an offer or a solicitation to lend. Providing information to purchase does not guarantee a loan


approval. All registered trademarks, copyright, images, or other items used are property of their respective owner and are used for editorial purposes only.


First Capital Mortgage is a subsidiary of PHH Home Loans LLC, a direct lender, Dept. of Corporations file #413-0713





Visit First Capital Online or call: 310-458-0010

How To Get Rid Of Your FHA Mortgage Insurance

2012-01-27T07:25:00.000-08:00

As compared to conforming loans and jumbo mortgages, FHA-backed loans are great for a lot of reasons.
FHA mortgages allow purchases with low downpayments; they allow refinances without appraisal; and FHA mortgage rates are often pretty low.
One place where FHA mortgages fall short as compared to other loan types, however, is with respect to mortgage insurance. FHA mortgage insurance can be cumbersome and costly.
If you're going to take an FHA-backed mortgage, you need to know how FHA mortgage insurance works.
Click here for an FHA mortgage rate quote.

With FHA, Everyone Pays Mortgage Insurance Twice

The FHA's role in Mortgage World is different from Fannie Mae and Freddie Mac. The FHA doesn't "buy mortgages" from banks like Fannie and Freddie do. Rather, it insures them.

It works like this : The FHA issues mortgage guidelines to which banks can underwrite a mortgage. These mortgages are commonly called "FHA mortgages".
If a bank underwrites an FHA mortgage and the loan goes into default, the FHA repays the bank's losses from its capital reserves. The FHA's capital reserves are funded by mortgage insurance premiums paid by the nation's FHA-insured homeowners.

FHA homeowners pay two types of mortgage insurance -- Upfront Mortgage Insurance Premiums and Annual Mortgage Insurance Premiums. These insurance types are sometimes abbreviated and known as UFMIP and MIP, respectively.
Since April 18, 2011, every FHA-insured homeowners has been required to pay both forms of FHA mortgage insurance.
Click here for an FHA mortgage rate quote.

How To Calculate Your FHA Mortgage Insurance

The FHA's mortgage insurance requirements are generally simple.
FHA Upfront Mortgage Insurance Premiums
The FHA's current upfront mortgage insurance premium (UFMIP) is 1 percent of your loan size. For example, if you want to apply for an FHA purchase mortgage and your loan size is $300,000, then your Upfront MIP will be equal to $3,000.
Upfront MIP is not paid as cash. It's automatically added to your loan balance by the FHA. Therefore, your final loan size in the example above will be $303,000.

Furthermore, upfront MIP is not used in your FHA loan-to-value calculation. This means that you can make a 3.5% downpayment on your purchase, add the 1 percent UFMIP to your loan size, and still meet the FHA's low downpayment guidelines.
Upfront MIP is paid to the FHA upfront, at closing, and never paid again. Hence the name, "upfront" MIP. However, because UFMIP is added to your loan balance, you do pay mortgage interest on it for the life of your loan.

FHA Annual Mortgage Insurance Premiums
The FHA's other type of mortgage insurance is paid monthly. Called Annual Mortgage Insurance Premiums (MIP), it's paid as a part of your mortgage statement.
Annual MIP is required on all FHA mortgages and premiums vary according to your FHA loan's individual characteristics. The FHA's MIP table is below :

15-year loan terms with loan-to-value over 90% : 0.50 percent annual MIP
15-year loan terms with loan-t0-value under 90% : 0.25 percent annual MIP
30-year loan terms with loan-to-value over 95% : 1.15 percent annual MIP
30-year loan terms with loan-to-value under 95% : 1.10 percent annual MIP

As a real-life example, a 30-year fixed rate FHA mortgage in a high-cost area such as Loudoun County, Virginia; or Bethesda, Maryland may be for as much as $729,750. If the FHA mortgage is a purchase and the buyer is putting the minimum 3.5% down on the home, the annual MIP is 1.15 percent, or $699 per month.
On a 15-year mortgage, the MIP falls to $304 per month.
Click here for an FHA mortgage rate quote.

How To Get Rid Of Your FHA Mortgage Insurance

One nice thing about FHA mortgage insurance is that it's not permanent. FHA mortgage insurance eventually goes away.
The schedule for getting rid of FHA mortgage insurance changes by loan term.

30-year loan term : Annual MIP is automatically canceled once the loan reaches 78% loan-to-value and monthly MIP has been paid for at least 60 months.

15-year loan term : Annual MIP is automatically canceled once the loan reaches 78% loan-to-value. There is no requirement that monthly MIP be paid for at least 60 months.

In other words, if you have a 30-year fixed rate FHA mortgage, you must pay mortgage insurance for at least 5 years before it can go away -- regardless of your loan balance. By comparison, if you have a 15-year fixed-rate FHA mortgage, your mortgage insurance is removed as soon as your LTV is low enough.
No action is needed on your part -- the FHA handles MIP removal automatically.
Also, note that the FHA does not allow a new appraisal to determine whether your loan is at 78% loan-to-value. The 78% LTV is based on the lesser of your purchase price, or its original appraised value.
At today's mortgage rates, a 15-year FHA mortgage on which the minimum 3.5% downpayment was made should pay down to 78% of the original purchase price within 26 months. A 30-year fixed will take 9 years to reach the same point.
Click here for an FHA mortgage rate quote.

FHA Mortgage Rates And MIP

FHA mortgage rates are cheap right now; cheaper than conventional loans and cheaper than VA. There are great bargains for first-time buyers and other households planning on minimum downpayments.
The trick is understanding FHA mortgage insurance. FHA mortgage insurance can be costly in the long run and there's good cause for comparing options.

Before you lock a 30-year fixed FHA loan, do your due diligence -- look at 15-year payments, too. 15-year FHA mortgage rates are often lower than comparable 30-year FHA mortgage rates and the mortgage insurance terms are more favorable.
You'll pay less MIP each month, and can be rid of it as much as 7 years sooner.
Click here for an FHA mortgage rate quote.

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