Author: barthorowitz

Is It Really Time to Buy a Home?

On Monday, we gave you the links to four different articles that came to the same conclusion: it’s time to buy a home.  Today, we want to take a closer look at one of the sources, the JP Morgan’s Market Insights report. Right from the beginning, the paper identifies the greatest challenge in today’s housing market: consumer emotion. They attempt to overcome that emotion with logical reasons why now is the time to buy a home. They break it down to the following: Price-to-Income Ratio One measure of housing values is the ratio of personal income to home prices. The report explains where we are today: “Since 1966, the median price of an existing single family home in the U.S. has varied between 150% and 251% of personal income per household. However, roughly three-quarters of the time it has been in a relatively narrow band between 185% and 230%. In September 2011, the ratio was just 153%, implying that to get back to an average price to income ratio, home prices would have to rise by about 27%.” Current Mortgage Interest Rates  With current 30 year mortgage rates, housing payments are at historic lows as compared to personal income. “During the week of October 7, Freddie Mac reported that mortgage rates had fallen to an average annual level of 3.94%. Assuming the use of a fixed rate mortgage with 20% down,...

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It’s Simple: Now Is the Time to Buy a Home

“The millionaire says to a thousand people, ‘I read this book and it started me on the road to wealth.’  Guess how many go out and get the book? Very few. Isn’t that incredible? Why wouldn’t everyone get the book? A mystery of life.”  – Jim Rohn Mr. Rohn explains that if we want to make the right financial decisions in our lives, we should depend on the same sources the wealthy read. This past month four different iconic financial resources said the same thing: IT’S TIME TO BUY A HOME! Here are all four resources. Forbes Magazine: The Next Mortgage Crisis Wall Street Journal: It’s Time to Buy That House Now Might Be the Best Time Ever to Buy a Home JP Morgan Market Insights: Housing: A Time To Buy Enjoy reading them!! — Reposted with permission of Keeping Current Matters About The Staten Island Board of REALTORS® (SIBOR) The Staten Island Board of REALTORS® (SIBOR) is the largest not-for-profit trade association in Staten Island, N.Y. SIBOR exists to enhance the ability and opportunity of its members to conduct their business successfully and ethically; and to promote the preservation of the public’s right to own, transfer and use real property. Comprised of over 1,800 members, SIBOR serves real estate agents, brokers and affiliated professionals throughout the borough and surrounding areas.  SIBOR is the provider of the Staten...

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Staten Island Board Of Realtors Elects Its Leaders For 2012

STATEN ISLAND, N.Y. — Next year’s leaders of Staten Island, N.Y.’s largest not-for-profit trade organization have been determined. Elections were held recently to complete the selection of directors of the Staten Island Board of Realtors (SIBOR) for 2012. Officers elected at an earlier time include Georgianna Diaz, president; Traci A. Cangiano, president-elect, and Laird Klein, secretary/treasurer. The early morning vote, held on Oct. 20 in the Hilton Garden Inn, Bloomfield, resulted in the following individuals being named to SIBOR’s board of directors for 2012: Kathleen O’Leary Garbarino, immediate past president; Joan Camerlengo; Claire Bisignano Chesnoff; Ann Coppola; Laura Dinten; Doreen S. Frazer, past president; Linda Garber; Wayne Goldstein; Ron Molcho; Neila Nuzzi; Irene Paoli; Fran Reali, and Greg Sokol. ONE NON-REALTOR Each year, one member of the board is a non-Realtor. This seat will be held in 2012 by Philip A. Guarnieri, president & CEO of Empire State Bank. Staten Island Multiple Listing Service The following individuals, or their designee, will join the board of the Staten Island Multiple Listing Service (SIMLS) as directors in 2012: Michael Calabrese, Robert DeFalco, Wayne Goldstein, Mimi Neuhaus, Frank Reali, John Saraceno and 2012 SIBOR President-Elect Traci A. Cangiano. Three returning SIMLS elected directors are: Diane Birrell, Sari Kingsley and George K. Wonica. Five broker-owners elected to the SIMLS board are: Michael Dukhovny, Ron Molcho, Betty Pappas, Paul Pipitone and Scott Setaro. The president...

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Will the 30 Year Mortgage Disappear?

The federal government is reconsidering their involvement in the home mortgage process. They plan to still ‘guarantee’ certain mortgages. However, they appear to be redefining what they consider a “qualified purchaser.” They are discussing stricter lending guidelines in four different areas:  The type of mortgage  The minimum down payment  The debt ratios of the buyer  The FICO score of the purchaser Today, we want to look at #1. It appears that there is at least conversation about eliminating the 30 year fixed rate mortgage which has been a staple in this country’s housing industry for some time. Some in government want to duplicate the mortgage process of other countries. In Canada, for example, they don’t even have 30 year fix rate mortgages available. The vast majority of Canadian home loans have a 25 year payout but the interest rate is renegotiated every five years. If rates go down, you will wind up with a lower rate. If rates go up, you end up paying a higher rate. If you want a fixed rate mortgage for 25 years you pay a rate approximately two percentage points higher than the going rate at the time of your closing. Would the same happen in this country? Last week, Housing Wire quoted Janis Bowdler, senior policy analyst at the National Council of La Raza: “Without some form of Fannie Mae and Freddie Mac,...

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SIBOR: Do Your Homework Before Mortgage Shopping

STATEN ISLAND, N.Y. — Searching for the right mortgage may seem daunting, but a bit of advance knowledge can make the task much easier. The Staten Island Board of Realtors (SIBOR) suggests considering these tips from the Board of Governors of the Federal Reserve System: 1)   Know what you can afford Review your monthly spending plan to estimate what you can afford to pay for a home, including the mortgage, property taxes, insurance, and monthly maintenance and utilities. Make sure you save for emergencies. Plan ahead to be sure you will be able to afford your monthly payments for several years. Check your credit report to make sure that the information in it is accurate. A higher credit score may help you get a lower interest rate on your mortgage. 2)   Shop around–compare loans from lenders and brokers Shopping takes time and energy, but not shopping around can cost you thousands of dollars. You can get a mortgage loan from mortgage lenders or mortgage brokers. Brokers arrange mortgage loans with a lender rather than lend money directly; in other words, brokers sell you a loan from a lender. Neither lenders nor brokers have to find the best loan for you–to find the best loan, you have to do the shopping. 3)   Understand loan prices and fees Many consumers accept the first loan offered and don’t realize that they may...

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