Ever notice how most homes are designed to fit the average family, with average needs and average incomes? But what happens if you're not average? …………..Sterling Oak is a custom home builder in the North Tarrant, South Wise and South Denton Counties. We believe that houses can be beautiful, but the owner's taste and unique selections make houses homes. And when your house reflects your personality, you feel at home. At Sterling Oak, we want to help you create your dream home regardless of the size or your budget.
At Sterling Oak each home is constructed the old-fashioned way – through quality construction and a commitment to serving our clients. It is the way homes used to be built and the way Sterling Oak builds them today - with pride and attention to detail. Yet, we rely on our state-of-the-art processes and technology to get you the best products and prices. We are committed to the highest standards in new home construction. That is why we are designated as a Graduate Master Builder by the National Association of Home Builders and a Texas Star Builder by the State of Texas. Our goal is to build a home you will love every day you live there.
We offer innovative designs that are not only flexible, but can reflect your distinctive tastes. And if you want to start from scratch, we can do that as well.
We urge you to visit any one of our models and compare us to those of other builders. Once you do, we're confident that you will discover the unbeatable value Sterling Oak offers.
Tuesday, December 16, 2008
Monday, December 15, 2008
Interest Rates. Feds Meet Tomorrow
We've reached a juncture in the credit markets where it really doesn't matter how low interest rates go -- banks are refusing to lend and consumers either have no desire to borrow – or they are in such troubled financial straits they can't meet the qualification criteria for a loan.
So what's the Fed to do? Many believe the Fed will announce in their post-meeting statement tomorrow afternoon (2:15 p.m. ET) that the answer to rekindling economy growth is actually quite simple – print money like crazy.
In a nutshell the idea here is that by flooding the economy with money – banks will ultimately find themselves bursting at the seams with capital – and they will essentially have no other option than to start lending. As the short-term credit market swings back into action, business confidence will rise, employment will improve and the engines of commerce will roar back to life.
Let me know your thoughts.
So what's the Fed to do? Many believe the Fed will announce in their post-meeting statement tomorrow afternoon (2:15 p.m. ET) that the answer to rekindling economy growth is actually quite simple – print money like crazy.
In a nutshell the idea here is that by flooding the economy with money – banks will ultimately find themselves bursting at the seams with capital – and they will essentially have no other option than to start lending. As the short-term credit market swings back into action, business confidence will rise, employment will improve and the engines of commerce will roar back to life.
Let me know your thoughts.
Sunday, December 14, 2008
Teaxs has some of the Richest Cities in the USA !
Let me help you find your home near or in One of the Richest Cities in the United States !
Click the link below to see the list.
http://www.chron.com/disp/story.mpl/metropolitan/6161683.html
Click the link below to see the list.
http://www.chron.com/disp/story.mpl/metropolitan/6161683.html
Tuesday, December 9, 2008
Extreme Home Make Over !
Click on the link below to see Extream Home Make Over build a home for a Keller Area family.
http://frontburner.dmagazine.com/2008/12/08/extreme-makeover-house-revealed/
http://frontburner.dmagazine.com/2008/12/08/extreme-makeover-house-revealed/
Lower Mortgage Rates !
Treasury Department Considers Plan to Lower Mortgage Rates
Financial industry lobbyists are urging the Treasury Department to take steps to lower rates on 30-year mortgages to 4.5 percent.
WASHINGTON -- Financial industry lobbyists are urging the Treasury Department to take steps to lower mortgage rates and help stabilize the battered U.S. housing market.
Under one proposal, Treasury would seek to lower the rate on a 30-year mortgage to 4.5 percent by purchasing mortgage-backed securities from Fannie Mae and Freddie Mac, Scott Talbott, chief lobbyist at the Financial Services Roundtable, said Wednesday.
If enacted, such a plan would be an unprecedented opportunity for anyone with good credit and a solid income who could qualify for a mortgage at the lowest rates on records dating to the early 1960s, said Keith Gumbinger, senior vice president at financial publisher HSH Associates.
"You would have the mother of all re-fi booms," said mortgage industry consultant Howard Glaser.
The goal of the industry's proposal would be to take advantage of the unusually large difference, or spread, between mortgage rates and yields on government debt. On Wednesday, the yield on the 10-year Treasury note yield sank as low as 2.65 percent, while the national average rate on a 30-year fixed rate mortgages was 5.75 percent, according to HSH Associates.
In recent years, there has been about a 1.8 percentage point difference between the yield on a 10-year Treasury note and a 30-year mortgage rate, but that spread currently hovers around 3 percentage points.
Analysts said that the government could use its ability to borrow money at low rates to in essence flood the market for mortgage-backed securities. This increased demand would tend to push down the yield on mortgage securities sold by Fannie and Freddie, which now average about 5.5 percent because of investor concerns about default risks. Once those yields fall, the theory goes, lower mortgage rates should follow.
That would have two benefits for the economy: Immediately adding money to the pocketbooks of homeowners who can refinance their mortgages and reduce their monthly payments, and eventually help arrest the slide in home prices since much lower mortgage rates would allow more potential buyers to qualify for loans.
"The goal is drive mortgage rates so low that home prices not only stop falling but begin to rebound," said Greg McBride, senior financial analyst at Bankrate.com.
If the government does buy up mortgage securities, it would be similar to the effort announced last week by the Federal Reserve to purchase up to $500 billion of mortgage-backed securities from Fannie and Freddie. The two mortgage giants, which were seized by federal regulators in September, own or guarantee about half of the $11.5 trillion in U.S. outstanding home loan debt.
The Fed, however, did not announce a specific target for mortgage rates, which plunged about a half percentage point after the announcement.
That caused new mortgage applications to more than double last week, according to the Mortgage Bankers Association's weekly survey released Wednesday. Refinance volume more than tripled, and made up for nearly 70 percent of all applications.
Still, the industry plan is not likely to help borrowers whose credit is so damaged that banks don't want to lend to them.
"It doesn't do anything to help all the borrowers facing foreclosures," said Guy Cecala, publisher of Inside Mortgage Finance, a trade publication. "It's going to benefit the people who have equity in their home, who have decent credit and can refinance."
Treasury is considering several options, and could announce a decision as early as next week, industry sources said.
Treasury spokeswoman Brookly McLaughlin said she would not comment on speculation about actions the department may take in the future.
The proposal was reported Wednesday afternoon on The Wall Street Journal's Web site.
Treasury could make such a proposal as part of a request for the second $350 billion of the $700 billion financial rescue fund, industry sources said.
Treasury Secretary Henry Paulson has been criticized by members of Congress for using the bailout money to shore up Wall Street banks, while not doing enough to help homeowners facing foreclosure.
In recent weeks, a diverse set of industry groups from real estate agents to carpet makers have called on lawmakers and the incoming administration of President-elect Barack Obama to subsidize lower mortgage rates and beef up tax credits to help stimulate housing demand.
The National Association of Realtors has been pushing a plan under which the federal government would spend $50 billion to lower mortgage rates. It says doing so would yield about 500,000 more home sales.
Meanwhile, the National Association of Home Builders is leading a new "Fix Housing First" coalition to push for aid to the ailing housing sector, including a tax credit of up to $22,000 for anyone who buys a home before the end of 2009.
Click here to read more in The Wall Street Journal.
Lisa Warren
Branch Manager
Financial industry lobbyists are urging the Treasury Department to take steps to lower rates on 30-year mortgages to 4.5 percent.
WASHINGTON -- Financial industry lobbyists are urging the Treasury Department to take steps to lower mortgage rates and help stabilize the battered U.S. housing market.
Under one proposal, Treasury would seek to lower the rate on a 30-year mortgage to 4.5 percent by purchasing mortgage-backed securities from Fannie Mae and Freddie Mac, Scott Talbott, chief lobbyist at the Financial Services Roundtable, said Wednesday.
If enacted, such a plan would be an unprecedented opportunity for anyone with good credit and a solid income who could qualify for a mortgage at the lowest rates on records dating to the early 1960s, said Keith Gumbinger, senior vice president at financial publisher HSH Associates.
"You would have the mother of all re-fi booms," said mortgage industry consultant Howard Glaser.
The goal of the industry's proposal would be to take advantage of the unusually large difference, or spread, between mortgage rates and yields on government debt. On Wednesday, the yield on the 10-year Treasury note yield sank as low as 2.65 percent, while the national average rate on a 30-year fixed rate mortgages was 5.75 percent, according to HSH Associates.
In recent years, there has been about a 1.8 percentage point difference between the yield on a 10-year Treasury note and a 30-year mortgage rate, but that spread currently hovers around 3 percentage points.
Analysts said that the government could use its ability to borrow money at low rates to in essence flood the market for mortgage-backed securities. This increased demand would tend to push down the yield on mortgage securities sold by Fannie and Freddie, which now average about 5.5 percent because of investor concerns about default risks. Once those yields fall, the theory goes, lower mortgage rates should follow.
That would have two benefits for the economy: Immediately adding money to the pocketbooks of homeowners who can refinance their mortgages and reduce their monthly payments, and eventually help arrest the slide in home prices since much lower mortgage rates would allow more potential buyers to qualify for loans.
"The goal is drive mortgage rates so low that home prices not only stop falling but begin to rebound," said Greg McBride, senior financial analyst at Bankrate.com.
If the government does buy up mortgage securities, it would be similar to the effort announced last week by the Federal Reserve to purchase up to $500 billion of mortgage-backed securities from Fannie and Freddie. The two mortgage giants, which were seized by federal regulators in September, own or guarantee about half of the $11.5 trillion in U.S. outstanding home loan debt.
The Fed, however, did not announce a specific target for mortgage rates, which plunged about a half percentage point after the announcement.
That caused new mortgage applications to more than double last week, according to the Mortgage Bankers Association's weekly survey released Wednesday. Refinance volume more than tripled, and made up for nearly 70 percent of all applications.
Still, the industry plan is not likely to help borrowers whose credit is so damaged that banks don't want to lend to them.
"It doesn't do anything to help all the borrowers facing foreclosures," said Guy Cecala, publisher of Inside Mortgage Finance, a trade publication. "It's going to benefit the people who have equity in their home, who have decent credit and can refinance."
Treasury is considering several options, and could announce a decision as early as next week, industry sources said.
Treasury spokeswoman Brookly McLaughlin said she would not comment on speculation about actions the department may take in the future.
The proposal was reported Wednesday afternoon on The Wall Street Journal's Web site.
Treasury could make such a proposal as part of a request for the second $350 billion of the $700 billion financial rescue fund, industry sources said.
Treasury Secretary Henry Paulson has been criticized by members of Congress for using the bailout money to shore up Wall Street banks, while not doing enough to help homeowners facing foreclosure.
In recent weeks, a diverse set of industry groups from real estate agents to carpet makers have called on lawmakers and the incoming administration of President-elect Barack Obama to subsidize lower mortgage rates and beef up tax credits to help stimulate housing demand.
The National Association of Realtors has been pushing a plan under which the federal government would spend $50 billion to lower mortgage rates. It says doing so would yield about 500,000 more home sales.
Meanwhile, the National Association of Home Builders is leading a new "Fix Housing First" coalition to push for aid to the ailing housing sector, including a tax credit of up to $22,000 for anyone who buys a home before the end of 2009.
Click here to read more in The Wall Street Journal.
Lisa Warren
Branch Manager
Lower Mortgage Rates !
Treasury Department Considers Plan to Lower Mortgage Rates
Financial industry lobbyists are urging the Treasury Department to take steps to lower rates on 30-year mortgages to 4.5 percent.
WASHINGTON -- Financial industry lobbyists are urging the Treasury Department to take steps to lower mortgage rates and help stabilize the battered U.S. housing market.
Under one proposal, Treasury would seek to lower the rate on a 30-year mortgage to 4.5 percent by purchasing mortgage-backed securities from Fannie Mae and Freddie Mac, Scott Talbott, chief lobbyist at the Financial Services Roundtable, said Wednesday.
If enacted, such a plan would be an unprecedented opportunity for anyone with good credit and a solid income who could qualify for a mortgage at the lowest rates on records dating to the early 1960s, said Keith Gumbinger, senior vice president at financial publisher HSH Associates.
"You would have the mother of all re-fi booms," said mortgage industry consultant Howard Glaser.
The goal of the industry's proposal would be to take advantage of the unusually large difference, or spread, between mortgage rates and yields on government debt. On Wednesday, the yield on the 10-year Treasury note yield sank as low as 2.65 percent, while the national average rate on a 30-year fixed rate mortgages was 5.75 percent, according to HSH Associates.
In recent years, there has been about a 1.8 percentage point difference between the yield on a 10-year Treasury note and a 30-year mortgage rate, but that spread currently hovers around 3 percentage points.
Analysts said that the government could use its ability to borrow money at low rates to in essence flood the market for mortgage-backed securities. This increased demand would tend to push down the yield on mortgage securities sold by Fannie and Freddie, which now average about 5.5 percent because of investor concerns about default risks. Once those yields fall, the theory goes, lower mortgage rates should follow.
That would have two benefits for the economy: Immediately adding money to the pocketbooks of homeowners who can refinance their mortgages and reduce their monthly payments, and eventually help arrest the slide in home prices since much lower mortgage rates would allow more potential buyers to qualify for loans.
"The goal is drive mortgage rates so low that home prices not only stop falling but begin to rebound," said Greg McBride, senior financial analyst at Bankrate.com.
If the government does buy up mortgage securities, it would be similar to the effort announced last week by the Federal Reserve to purchase up to $500 billion of mortgage-backed securities from Fannie and Freddie. The two mortgage giants, which were seized by federal regulators in September, own or guarantee about half of the $11.5 trillion in U.S. outstanding home loan debt.
The Fed, however, did not announce a specific target for mortgage rates, which plunged about a half percentage point after the announcement.
That caused new mortgage applications to more than double last week, according to the Mortgage Bankers Association's weekly survey released Wednesday. Refinance volume more than tripled, and made up for nearly 70 percent of all applications.
Still, the industry plan is not likely to help borrowers whose credit is so damaged that banks don't want to lend to them.
"It doesn't do anything to help all the borrowers facing foreclosures," said Guy Cecala, publisher of Inside Mortgage Finance, a trade publication. "It's going to benefit the people who have equity in their home, who have decent credit and can refinance."
Treasury is considering several options, and could announce a decision as early as next week, industry sources said.
Treasury spokeswoman Brookly McLaughlin said she would not comment on speculation about actions the department may take in the future.
The proposal was reported Wednesday afternoon on The Wall Street Journal's Web site.
Treasury could make such a proposal as part of a request for the second $350 billion of the $700 billion financial rescue fund, industry sources said.
Treasury Secretary Henry Paulson has been criticized by members of Congress for using the bailout money to shore up Wall Street banks, while not doing enough to help homeowners facing foreclosure.
In recent weeks, a diverse set of industry groups from real estate agents to carpet makers have called on lawmakers and the incoming administration of President-elect Barack Obama to subsidize lower mortgage rates and beef up tax credits to help stimulate housing demand.
The National Association of Realtors has been pushing a plan under which the federal government would spend $50 billion to lower mortgage rates. It says doing so would yield about 500,000 more home sales.
Meanwhile, the National Association of Home Builders is leading a new "Fix Housing First" coalition to push for aid to the ailing housing sector, including a tax credit of up to $22,000 for anyone who buys a home before the end of 2009.
Click here to read more in The Wall Street Journal.
Lisa Warren
Branch Manager
Financial industry lobbyists are urging the Treasury Department to take steps to lower rates on 30-year mortgages to 4.5 percent.
WASHINGTON -- Financial industry lobbyists are urging the Treasury Department to take steps to lower mortgage rates and help stabilize the battered U.S. housing market.
Under one proposal, Treasury would seek to lower the rate on a 30-year mortgage to 4.5 percent by purchasing mortgage-backed securities from Fannie Mae and Freddie Mac, Scott Talbott, chief lobbyist at the Financial Services Roundtable, said Wednesday.
If enacted, such a plan would be an unprecedented opportunity for anyone with good credit and a solid income who could qualify for a mortgage at the lowest rates on records dating to the early 1960s, said Keith Gumbinger, senior vice president at financial publisher HSH Associates.
"You would have the mother of all re-fi booms," said mortgage industry consultant Howard Glaser.
The goal of the industry's proposal would be to take advantage of the unusually large difference, or spread, between mortgage rates and yields on government debt. On Wednesday, the yield on the 10-year Treasury note yield sank as low as 2.65 percent, while the national average rate on a 30-year fixed rate mortgages was 5.75 percent, according to HSH Associates.
In recent years, there has been about a 1.8 percentage point difference between the yield on a 10-year Treasury note and a 30-year mortgage rate, but that spread currently hovers around 3 percentage points.
Analysts said that the government could use its ability to borrow money at low rates to in essence flood the market for mortgage-backed securities. This increased demand would tend to push down the yield on mortgage securities sold by Fannie and Freddie, which now average about 5.5 percent because of investor concerns about default risks. Once those yields fall, the theory goes, lower mortgage rates should follow.
That would have two benefits for the economy: Immediately adding money to the pocketbooks of homeowners who can refinance their mortgages and reduce their monthly payments, and eventually help arrest the slide in home prices since much lower mortgage rates would allow more potential buyers to qualify for loans.
"The goal is drive mortgage rates so low that home prices not only stop falling but begin to rebound," said Greg McBride, senior financial analyst at Bankrate.com.
If the government does buy up mortgage securities, it would be similar to the effort announced last week by the Federal Reserve to purchase up to $500 billion of mortgage-backed securities from Fannie and Freddie. The two mortgage giants, which were seized by federal regulators in September, own or guarantee about half of the $11.5 trillion in U.S. outstanding home loan debt.
The Fed, however, did not announce a specific target for mortgage rates, which plunged about a half percentage point after the announcement.
That caused new mortgage applications to more than double last week, according to the Mortgage Bankers Association's weekly survey released Wednesday. Refinance volume more than tripled, and made up for nearly 70 percent of all applications.
Still, the industry plan is not likely to help borrowers whose credit is so damaged that banks don't want to lend to them.
"It doesn't do anything to help all the borrowers facing foreclosures," said Guy Cecala, publisher of Inside Mortgage Finance, a trade publication. "It's going to benefit the people who have equity in their home, who have decent credit and can refinance."
Treasury is considering several options, and could announce a decision as early as next week, industry sources said.
Treasury spokeswoman Brookly McLaughlin said she would not comment on speculation about actions the department may take in the future.
The proposal was reported Wednesday afternoon on The Wall Street Journal's Web site.
Treasury could make such a proposal as part of a request for the second $350 billion of the $700 billion financial rescue fund, industry sources said.
Treasury Secretary Henry Paulson has been criticized by members of Congress for using the bailout money to shore up Wall Street banks, while not doing enough to help homeowners facing foreclosure.
In recent weeks, a diverse set of industry groups from real estate agents to carpet makers have called on lawmakers and the incoming administration of President-elect Barack Obama to subsidize lower mortgage rates and beef up tax credits to help stimulate housing demand.
The National Association of Realtors has been pushing a plan under which the federal government would spend $50 billion to lower mortgage rates. It says doing so would yield about 500,000 more home sales.
Meanwhile, the National Association of Home Builders is leading a new "Fix Housing First" coalition to push for aid to the ailing housing sector, including a tax credit of up to $22,000 for anyone who buys a home before the end of 2009.
Click here to read more in The Wall Street Journal.
Lisa Warren
Branch Manager
Tuesday, November 25, 2008
Rates Go Down!
AP story
The Federal Reserve said Tuesday it will buy up to $600 billion in mortgage-backed assets in another attempt to deal with the financial crisis.
The Fed said it will purchase up to $100 billion in direct obligations from mortgage giants Fannie Mae and Freddie Mac as well as the Federal Home Loan Banks. It also will purchase another $500 billion in mortgage-backed securities, pools of mortgages that are bundled together and sold to investors.
The $600 billion effort on mortgages came as the Fed also unveiled a new program to help unfreeze the market that backs consumer debt such as credit cards, auto loans and student loans.
The program on consumer debt will lend up to $200 billion to the holders of securities backed by various types of consumer loans. Treasury Secretary Henry Paulson had said recently that the government was working on the new program, which will be supported by $20 billion of credit protection provided by the $700 billion bailout fund.
The Fed said that the $600 billion effort to support the mortgage market was being taken to reduce the cost of home mortgages and increase their availability. It said the purchases of the mortgages and mortgage-backed securities would take place over a number of months.
The severe financial crisis that is rocking global markets at the moment began more than a year ago with rising defaults on subprime mortgages, loans provided to borrowers with weak credit histories.
The billions of dollars of losses financial institutions have suffered on their mortgage loans have caused banks to stop making new loans of various types, which almost certainly has helped push the country into a deep recession.
The Federal Reserve said Tuesday it will buy up to $600 billion in mortgage-backed assets in another attempt to deal with the financial crisis.
The Fed said it will purchase up to $100 billion in direct obligations from mortgage giants Fannie Mae and Freddie Mac as well as the Federal Home Loan Banks. It also will purchase another $500 billion in mortgage-backed securities, pools of mortgages that are bundled together and sold to investors.
The $600 billion effort on mortgages came as the Fed also unveiled a new program to help unfreeze the market that backs consumer debt such as credit cards, auto loans and student loans.
The program on consumer debt will lend up to $200 billion to the holders of securities backed by various types of consumer loans. Treasury Secretary Henry Paulson had said recently that the government was working on the new program, which will be supported by $20 billion of credit protection provided by the $700 billion bailout fund.
The Fed said that the $600 billion effort to support the mortgage market was being taken to reduce the cost of home mortgages and increase their availability. It said the purchases of the mortgages and mortgage-backed securities would take place over a number of months.
The severe financial crisis that is rocking global markets at the moment began more than a year ago with rising defaults on subprime mortgages, loans provided to borrowers with weak credit histories.
The billions of dollars of losses financial institutions have suffered on their mortgage loans have caused banks to stop making new loans of various types, which almost certainly has helped push the country into a deep recession.
Monday, November 10, 2008
The First Time Buyer $7,500 IRS Tax Credit!
The First Time Buyer $7,500 IRS Tax Credit: Why Isn’t There More Excitement?
By David Fialk
RISMEDIA, Nov. 10, 2008-What is a potential home buyer to do? There is widespread negative publicity about the future of real estate values. There is negative publicity regarding the difficulty in obtaining mortgage financing, the problems with sub prime mortgages, home foreclosures and the collapse of financial institutions. They are experiencing an astronomical drop in the value of their stock portfolios. They have concern with job security. Can you blame buyers for slowing down and not rushing into a long term financial commitment, such as purchasing a home?
With that said, there are buyers setting appointments daily to see homes. There are buyers who are in situations where buying a home is a necessity, or is more preferred than continuing to rent. While total sale transactions may be down in many real estate markets, home purchases and real estate closings continue.
The mindset of buyers has changed. There is no reason to rush to purchase a home immediately because of rising real estate values. There is no reason for a buyer to rush into making an offer on a home they just looked at and seemed to like. There are just too many other homes on the market they haven’t seen yet. Maybe mortgage rates will drop? Maybe real estate values will drop further?
So why isn’t there more enthusiasm, more excitement and more publicity in the Realtor community with the $7,500 First-Time Buyer IRS Tax Credit included in the Housing and Recovery Act of 2008?
Throughout 2008, Realtors have tirelessly promoted the benefits of purchasing a home in the current real estate market (favorable mortgage interest rates, lower real estate values, available listing inventory, etc). Where is the effort in promoting the benefits a tax credit like this can be to first-time buyers? Combined with favorable interest rates, a wide selection of homes for sale and more affordable home prices, this tax credit may be just the stimulus and financial assistance many first time buyers need to move forward and make a commitment to purchase a home now, rather than just look at homes and wait for a better time to buy.
The $7,500 First-Time Buyer IRS Tax Credit applies to first-time buyer home purchases of a principle residence between April 9, 2008 and July 1, 2009. It is a tax credit and not a tax deduction. A tax credit is a reduction in income taxes owed! In other words, when a buyer files their income taxes for the year the home was purchased (2008 or 2009), they may be able to subtract $7,500 from the amount of federal income tax liability, which will either increase their tax refund or reduce the amount of tax still owed.
However, this tax credit is not free. It has to be paid back. Repayment begins two years after the credit is claimed, and must be repaid within 15 years. That’s $500 per year. Yes, it would have been much better if there was no repayment provision, but an interest-free loan for 15 years is not such a bad thing, is it? That’s right; there is no interest on the tax credit received.
To help clients understand the tax credit and how it may help them, Realtors need to promote it and know the details. They need to be able to provide buyers with information that is easy to understand. I have provided links to various articles with more detailed information below, including income limits, definition of first-time buyer and more.
While many have questioned the benefit of this type of tax credit, which requires repayment, take a look at the benefits a $7,500 income tax credit provides. More first-time buyers than not leave the closing table and have little left in savings after the purchase of their home. As new homeowners, they are now confronted with a mortgage payment that exceeds what they were accustomed to paying in rent. They have a home to furnish, with more rooms to fill with furniture than their apartment in most cases. They may also need to spend money on painting, some redecorating, carpeting and window coverings. In addition, there are other home ownership necessities such as a lawn mower, ladder, garden tools and the like that must be purchased, not to mention the expense of making any costly repairs or improvements the home may require.
More often than not these purchases are made with a charge card, with interest rates that are upward of 17%. These additional monthly expenses for home-related purchases are in addition to the large monthly mortgage payment they now have. So why wouldn’t a buyer be excited about obtaining the $7,500 tax credit, and having the benefit of repaying it over 15 years without interest?
What if a first-time buyer really liked a home they saw that needed some major repairs or renovation, a home that represented a great buying opportunity? But after much consideration, they decided against buying it. They just didn’t have the financial resources after the closing to accomplish the type of repairs required, such as a new furnace or new roof or new siding or new windows. Wouldn’t the opportunity to obtain $7,500 in an income tax refund possibly be the answer to this type of concern?
Talk about savings. Let’s assume a first-time buyer will have cash reserves after closing and is financially prepared for the purchase of the various items mentioned above. Why would a $7,500 tax credit, which has to be repaid, be beneficial to them?
Let’s assume a $300,000 mortgage was needed in the home purchase at 6.5% interest for 30 years. What if the $7,500 tax credit refund was used to pre-pay the mortgage? Using simple math that would be an annual interest savings of $487.50, just about equal to the $500 per year repayment obligation.
The truth in the matter is that the savings is much greater than the simple math calculation. Pre-paying the mortgage by $7,500 will not reduce the monthly mortgage payment of a fixed rate mortgage. That remains the same. The real benefit is this: The outstanding mortgage balance is reduced by $7,500 and each future mortgage payment results in savings in mortgage interest and increased principal mortgage reduction. With each monthly mortgage payment more money goes to reducing the mortgage balance and less is applied to interest. Together these savings will exceed the $500 cost of repayment of the tax credit. The benefit over the term of the mortgage in interest savings and mortgage reduction will be quite surprising.
What if the buyer prefers obtaining an adjustable rate mortgage or some type of a step down mortgage loan where the mortgage interest rate is lower in the first year and increases in the second or third year? If the $7,500 tax credit is used to pre-pay the mortgage, the new monthly mortgage payment in the rate adjustment year will be lower than it would have originally been as the outstanding mortgage balance has now been reduced by the $7,500 pre-payment.
What if the home is sold prior to repayment of the tax credit? Another provision requires repayment of the balance of the tax credit owed in the event of a sale of the home prior to full repayment. However, special provisions do provide for circumstances where the balance owed is greater than the gain in value or when there is a loss in value. If the gain on the sale is less than the amount owed, part of the balance owed will be forgiven. If there was no gain, or even a loss, then the remaining balance would not need to be repaid.
As a Realtor, I am excited for buyers who are eligible for this IRS $7,500 First-Time Buyer Tax Credit. Qualified first-time buyers should be excited too!
This represents another valid reason why “Now is a Great Time to Buy a Home.” Don’t forget to reach out to past sale clients who may be eligible and closed on their purchase after April 9, 2008. I am sure they would appreciate obtaining information and the opportunity of receiving a $7,500 income tax credit.
Please read the information below:
By David Fialk
RISMEDIA, Nov. 10, 2008-What is a potential home buyer to do? There is widespread negative publicity about the future of real estate values. There is negative publicity regarding the difficulty in obtaining mortgage financing, the problems with sub prime mortgages, home foreclosures and the collapse of financial institutions. They are experiencing an astronomical drop in the value of their stock portfolios. They have concern with job security. Can you blame buyers for slowing down and not rushing into a long term financial commitment, such as purchasing a home?
With that said, there are buyers setting appointments daily to see homes. There are buyers who are in situations where buying a home is a necessity, or is more preferred than continuing to rent. While total sale transactions may be down in many real estate markets, home purchases and real estate closings continue.
The mindset of buyers has changed. There is no reason to rush to purchase a home immediately because of rising real estate values. There is no reason for a buyer to rush into making an offer on a home they just looked at and seemed to like. There are just too many other homes on the market they haven’t seen yet. Maybe mortgage rates will drop? Maybe real estate values will drop further?
So why isn’t there more enthusiasm, more excitement and more publicity in the Realtor community with the $7,500 First-Time Buyer IRS Tax Credit included in the Housing and Recovery Act of 2008?
Throughout 2008, Realtors have tirelessly promoted the benefits of purchasing a home in the current real estate market (favorable mortgage interest rates, lower real estate values, available listing inventory, etc). Where is the effort in promoting the benefits a tax credit like this can be to first-time buyers? Combined with favorable interest rates, a wide selection of homes for sale and more affordable home prices, this tax credit may be just the stimulus and financial assistance many first time buyers need to move forward and make a commitment to purchase a home now, rather than just look at homes and wait for a better time to buy.
The $7,500 First-Time Buyer IRS Tax Credit applies to first-time buyer home purchases of a principle residence between April 9, 2008 and July 1, 2009. It is a tax credit and not a tax deduction. A tax credit is a reduction in income taxes owed! In other words, when a buyer files their income taxes for the year the home was purchased (2008 or 2009), they may be able to subtract $7,500 from the amount of federal income tax liability, which will either increase their tax refund or reduce the amount of tax still owed.
However, this tax credit is not free. It has to be paid back. Repayment begins two years after the credit is claimed, and must be repaid within 15 years. That’s $500 per year. Yes, it would have been much better if there was no repayment provision, but an interest-free loan for 15 years is not such a bad thing, is it? That’s right; there is no interest on the tax credit received.
To help clients understand the tax credit and how it may help them, Realtors need to promote it and know the details. They need to be able to provide buyers with information that is easy to understand. I have provided links to various articles with more detailed information below, including income limits, definition of first-time buyer and more.
While many have questioned the benefit of this type of tax credit, which requires repayment, take a look at the benefits a $7,500 income tax credit provides. More first-time buyers than not leave the closing table and have little left in savings after the purchase of their home. As new homeowners, they are now confronted with a mortgage payment that exceeds what they were accustomed to paying in rent. They have a home to furnish, with more rooms to fill with furniture than their apartment in most cases. They may also need to spend money on painting, some redecorating, carpeting and window coverings. In addition, there are other home ownership necessities such as a lawn mower, ladder, garden tools and the like that must be purchased, not to mention the expense of making any costly repairs or improvements the home may require.
More often than not these purchases are made with a charge card, with interest rates that are upward of 17%. These additional monthly expenses for home-related purchases are in addition to the large monthly mortgage payment they now have. So why wouldn’t a buyer be excited about obtaining the $7,500 tax credit, and having the benefit of repaying it over 15 years without interest?
What if a first-time buyer really liked a home they saw that needed some major repairs or renovation, a home that represented a great buying opportunity? But after much consideration, they decided against buying it. They just didn’t have the financial resources after the closing to accomplish the type of repairs required, such as a new furnace or new roof or new siding or new windows. Wouldn’t the opportunity to obtain $7,500 in an income tax refund possibly be the answer to this type of concern?
Talk about savings. Let’s assume a first-time buyer will have cash reserves after closing and is financially prepared for the purchase of the various items mentioned above. Why would a $7,500 tax credit, which has to be repaid, be beneficial to them?
Let’s assume a $300,000 mortgage was needed in the home purchase at 6.5% interest for 30 years. What if the $7,500 tax credit refund was used to pre-pay the mortgage? Using simple math that would be an annual interest savings of $487.50, just about equal to the $500 per year repayment obligation.
The truth in the matter is that the savings is much greater than the simple math calculation. Pre-paying the mortgage by $7,500 will not reduce the monthly mortgage payment of a fixed rate mortgage. That remains the same. The real benefit is this: The outstanding mortgage balance is reduced by $7,500 and each future mortgage payment results in savings in mortgage interest and increased principal mortgage reduction. With each monthly mortgage payment more money goes to reducing the mortgage balance and less is applied to interest. Together these savings will exceed the $500 cost of repayment of the tax credit. The benefit over the term of the mortgage in interest savings and mortgage reduction will be quite surprising.
What if the buyer prefers obtaining an adjustable rate mortgage or some type of a step down mortgage loan where the mortgage interest rate is lower in the first year and increases in the second or third year? If the $7,500 tax credit is used to pre-pay the mortgage, the new monthly mortgage payment in the rate adjustment year will be lower than it would have originally been as the outstanding mortgage balance has now been reduced by the $7,500 pre-payment.
What if the home is sold prior to repayment of the tax credit? Another provision requires repayment of the balance of the tax credit owed in the event of a sale of the home prior to full repayment. However, special provisions do provide for circumstances where the balance owed is greater than the gain in value or when there is a loss in value. If the gain on the sale is less than the amount owed, part of the balance owed will be forgiven. If there was no gain, or even a loss, then the remaining balance would not need to be repaid.
As a Realtor, I am excited for buyers who are eligible for this IRS $7,500 First-Time Buyer Tax Credit. Qualified first-time buyers should be excited too!
This represents another valid reason why “Now is a Great Time to Buy a Home.” Don’t forget to reach out to past sale clients who may be eligible and closed on their purchase after April 9, 2008. I am sure they would appreciate obtaining information and the opportunity of receiving a $7,500 income tax credit.
Please read the information below:
Wednesday, October 29, 2008
You can Finance a Home !
URGENT!! Don't let the media spook you!! You do not have to have 20% down to obtain a home loan, we are financing people with a minimum of 3% down and even 0% down on special programs and areas. Right now is the perfect time to buy a home, it is the largest investment you and your family will make. If you do not own a home or are interested in moving to a new one please call us. We can find a program that will best suit your needs.
Lisa Warren
Branch Manager
Contact Kelly Martin For More Information.
Direct line 817-881-1612
Lisa Warren
Branch Manager
Contact Kelly Martin For More Information.
Direct line 817-881-1612
Tuesday, October 28, 2008
$4 Billion in Federal Grants for Foreclosed and Abandoned Homes
Written by: Trista Winnie
Click a star to rate.
Federal grants—to the tune of nearly $4 billion—will be distributed to state and local governments in an effort to help them buy foreclosed and abandoned homes. A spreadsheet, created by researchers at the Local Initiatives Support Corp. (LISC) documents how widespread subprime lending and delinquency and foreclosure rates in more than 1,000 markets, according to Inman News. This spreadsheet could play a role in determining the allocation of the $4 billion in federal grants. (Download the spreadsheet as an xls here.)
"State and local governments must submit an action plan by Dec. 1 detailing how they will distribute the Neighborhood Stabilization Program funds, which are supposed to go to high-risk areas with the greatest percentage of subprime loans and foreclosures," according to Inman News.
The Neighborhood Stabilization Program was created by Congress in July, and last month, the U.S. Department of Housing and Urban Development allocated $3.92 billion to the program in the form of 300 grants. "States receiving the largest allocations include California ($530 million), Florida ($541 million), Michigan ($264 million), Ohio ($258 million) and Texas ($178 million)," according to Inman News.
To determine which areas will get the grants, LISC developed a metric they call a "foreclosure needs score" for a geographic area. These geographic areas are defined by the Community Development Block Grant (CDBG) level and the scores are defined by measures of subprime lending, foreclosures and delinquency from McDash Analytics and vacancy rates from the U.S. Postal Service, according to HousingPolicy.org. LISC is planning to create foreclosure needs scores at the ZIP code level in the future.
Although the spreadsheet was not intended for real estate investors, it contains the type of data that makes it seem tailor-made for them: "vacancy ratios and the number and percentage of delinquencies, foreclosures and real-estate-owned properties in hundreds of individual housing markets, as well as the number and percentage of subprime loans," according to Inman News.
The information could prove useful both to real estate investors who seek out foreclosures as investment opportunities and those who want to avoid them. While investing in a foreclosure could mean a great deal on a property for an investor, those who are searching for a property to use as their primary residence might want to avoid areas with lots of foreclosures, because a higher number of foreclosures in an area has been shown to correlate with an increased crime rate. A 2005 study by the Federal Reserve Bank of Chicago found "that higher foreclosure levels do contribute to higher levels of violent crime....A standard deviation increase in the foreclosure rate (about 2.8 foreclosures for every 100 owner-occupied properties in one year) corresponds to an increase in neighborhood violent crime of approximately 6.7 percent."
HUD also has extensive information on a Neighborhood Stabilization Program page on its website, which contains information such as income limits for the program, along with foreclosure rates and foreclosure and abandonment risk scores for various markets.
Click a star to rate.
Federal grants—to the tune of nearly $4 billion—will be distributed to state and local governments in an effort to help them buy foreclosed and abandoned homes. A spreadsheet, created by researchers at the Local Initiatives Support Corp. (LISC) documents how widespread subprime lending and delinquency and foreclosure rates in more than 1,000 markets, according to Inman News. This spreadsheet could play a role in determining the allocation of the $4 billion in federal grants. (Download the spreadsheet as an xls here.)
"State and local governments must submit an action plan by Dec. 1 detailing how they will distribute the Neighborhood Stabilization Program funds, which are supposed to go to high-risk areas with the greatest percentage of subprime loans and foreclosures," according to Inman News.
The Neighborhood Stabilization Program was created by Congress in July, and last month, the U.S. Department of Housing and Urban Development allocated $3.92 billion to the program in the form of 300 grants. "States receiving the largest allocations include California ($530 million), Florida ($541 million), Michigan ($264 million), Ohio ($258 million) and Texas ($178 million)," according to Inman News.
To determine which areas will get the grants, LISC developed a metric they call a "foreclosure needs score" for a geographic area. These geographic areas are defined by the Community Development Block Grant (CDBG) level and the scores are defined by measures of subprime lending, foreclosures and delinquency from McDash Analytics and vacancy rates from the U.S. Postal Service, according to HousingPolicy.org. LISC is planning to create foreclosure needs scores at the ZIP code level in the future.
Although the spreadsheet was not intended for real estate investors, it contains the type of data that makes it seem tailor-made for them: "vacancy ratios and the number and percentage of delinquencies, foreclosures and real-estate-owned properties in hundreds of individual housing markets, as well as the number and percentage of subprime loans," according to Inman News.
The information could prove useful both to real estate investors who seek out foreclosures as investment opportunities and those who want to avoid them. While investing in a foreclosure could mean a great deal on a property for an investor, those who are searching for a property to use as their primary residence might want to avoid areas with lots of foreclosures, because a higher number of foreclosures in an area has been shown to correlate with an increased crime rate. A 2005 study by the Federal Reserve Bank of Chicago found "that higher foreclosure levels do contribute to higher levels of violent crime....A standard deviation increase in the foreclosure rate (about 2.8 foreclosures for every 100 owner-occupied properties in one year) corresponds to an increase in neighborhood violent crime of approximately 6.7 percent."
HUD also has extensive information on a Neighborhood Stabilization Program page on its website, which contains information such as income limits for the program, along with foreclosure rates and foreclosure and abandonment risk scores for various markets.
Governor discusses Tex. economyDallas Business Journal - by W. Scott Bailey
The current state of the national economy has left its fiscal and political scars on people and places across the United States.
But in Texas, Gov. Rick Perry says the Lone Star State has managed to absorb the one-two punch of a national economic crisis and a devastating hurricane — Ike, which rolled through Texas in early September.
Perry was sworn in as the 47th governor in December 2000. Achieving economic success, he says, has not been easy.
In early 2003, Perry says Texas lawmakers were dealing with an unexpected $10 billion budget shortfall. And that’s when he says state leaders knew they had to make some tough financial decisions.
“We lowered taxes, we prioritized spending and we focused on the essentials,” Perry says.
He says that effort helped build the foundation for the economic stability Texas has enjoyed at a time when other states are struggling with the fallout from the economic meltdown.
“Today, we’re the number-one exporting state in the nation,” Perry says. “And we are now the home to more Fortune 500 companies than any other state in the nation. That’s a powerful statement.”
Perry points to what happened in 2003 as a game-changer for Texas.
“That’s when we really sent a powerful message to the people who risk capital, create jobs and create wealth that we were not going to be like other states,” he says.
Eyes wide open
Perry has his share of critics. Some of them question why Texas still leads the nation with the highest percentage of uninsured. Roughly one in four Texans lack health insurance.
And Texas has not been entirely immune to the national economic woes. Early this year, D’Ann Petersen, an economist with the Federal Reserve Bank of Dallas, raised some red flags when she warned that Texas’ housing industry was in for a tough 2008.
A Federal Reserve report published earlier this month suggests Texas experienced a September slowdown affecting retailers, the auto industry and real estate leasing activity.
In recent days, Perry has called upon state agencies in Texas to take measures to cut as much discretionary spending from their budgets as possible. He has also pledged to push for more budgetary transparency.
Texas Comptroller Susan Combs says the Lone Star State took in nearly $1.7 billion in sales tax revenues last month — a nearly 4 percent increase over September 2007 collections.
“While growth remains positive overall, sectors such as construction, retail trade and restaurants are showing signs of slowing down,” Combs says.
Some suggest Texas may need to tread more cautiously in the days ahead.
“We continue to be somewhat exempt in Texas from the national problems — especially in San Antonio,” says Bill Ozer, vice president of San Antonio-based NAI REOC Partners. “But we need to be careful in the investments we make moving forward. We can’t grow blindly.”
Says Perry, “The fact of the matter is that there are some concerns. But we shouldn’t bury our heads in the sand. We shouldn’t go hide in the closet and wait for the financial bogey man to go away.”
Still standing
Perry believes Texas leaders have already taken some proactive steps, which have helped to shield the state from some of the economic storm surge that has hit other parts of the country.
One example was Texas’ decision to enact stronger guidelines for home-equity borrowing and lending. Perry says that has resulted in Texas having one of the lowest levels of mortgage defaults among the nation’s top 10 most populous states.
But in Texas, Gov. Rick Perry says the Lone Star State has managed to absorb the one-two punch of a national economic crisis and a devastating hurricane — Ike, which rolled through Texas in early September.
Perry was sworn in as the 47th governor in December 2000. Achieving economic success, he says, has not been easy.
In early 2003, Perry says Texas lawmakers were dealing with an unexpected $10 billion budget shortfall. And that’s when he says state leaders knew they had to make some tough financial decisions.
“We lowered taxes, we prioritized spending and we focused on the essentials,” Perry says.
He says that effort helped build the foundation for the economic stability Texas has enjoyed at a time when other states are struggling with the fallout from the economic meltdown.
“Today, we’re the number-one exporting state in the nation,” Perry says. “And we are now the home to more Fortune 500 companies than any other state in the nation. That’s a powerful statement.”
Perry points to what happened in 2003 as a game-changer for Texas.
“That’s when we really sent a powerful message to the people who risk capital, create jobs and create wealth that we were not going to be like other states,” he says.
Eyes wide open
Perry has his share of critics. Some of them question why Texas still leads the nation with the highest percentage of uninsured. Roughly one in four Texans lack health insurance.
And Texas has not been entirely immune to the national economic woes. Early this year, D’Ann Petersen, an economist with the Federal Reserve Bank of Dallas, raised some red flags when she warned that Texas’ housing industry was in for a tough 2008.
A Federal Reserve report published earlier this month suggests Texas experienced a September slowdown affecting retailers, the auto industry and real estate leasing activity.
In recent days, Perry has called upon state agencies in Texas to take measures to cut as much discretionary spending from their budgets as possible. He has also pledged to push for more budgetary transparency.
Texas Comptroller Susan Combs says the Lone Star State took in nearly $1.7 billion in sales tax revenues last month — a nearly 4 percent increase over September 2007 collections.
“While growth remains positive overall, sectors such as construction, retail trade and restaurants are showing signs of slowing down,” Combs says.
Some suggest Texas may need to tread more cautiously in the days ahead.
“We continue to be somewhat exempt in Texas from the national problems — especially in San Antonio,” says Bill Ozer, vice president of San Antonio-based NAI REOC Partners. “But we need to be careful in the investments we make moving forward. We can’t grow blindly.”
Says Perry, “The fact of the matter is that there are some concerns. But we shouldn’t bury our heads in the sand. We shouldn’t go hide in the closet and wait for the financial bogey man to go away.”
Still standing
Perry believes Texas leaders have already taken some proactive steps, which have helped to shield the state from some of the economic storm surge that has hit other parts of the country.
One example was Texas’ decision to enact stronger guidelines for home-equity borrowing and lending. Perry says that has resulted in Texas having one of the lowest levels of mortgage defaults among the nation’s top 10 most populous states.
Monday, September 8, 2008
What the Federal Takover of mortgage giants means to you.
Bailout of mortgage giants should result in lower mortgage costs and make credit more available. But lending standards will stay tight and risky borrowers will still pay extra fees.
NEW YORK (CNNMoney.com) -- Mortgage applicants rejoice!
Sunday's federal takeover of Fannie Mae and Freddie Mac will likely translate into lower mortgage rates and greater availability of credit, experts said. Rates could drop by 1 percentage point from the stubbornly-high 6.39% for a 30-year fixed rate mortgage.
"This could be good for would-be homeowners," said Tom LaMalfa, managing director, Wholesale Access, a research and consulting firm. "It would reduce the cost of financing at the new and improved Fannie and Freddie."
The government bailout is aimed at making mortgages easier to obtain and afford. By shoring up the mortgage financing giants, they can continue buying mortgages from lenders and injecting much-needed cash into the system.
"Fannie Mae and Freddie Mac are crucial to turning the corner on housing," said Treasury Henry Paulson. "Therefore, the primary mission of these enterprises now will be to proactively work to increase the availability of mortgage finance. Our economy and our markets will not recover until the bulk of this housing correction is behind us."
But the news isn't all good. With Friday's report that foreclosures and delinquencies are at all-time highs, Fannie and Freddie are expected to maintain - if not ratchet up - tighter lending standards. And the fees they have introduced for borrowers with weaker credit histories won't go away anytime soon.
High borrowing costs
Mortgage rates borrowers pay are dependent on the yields that investors demand when buying mortgage-backed securities from Fannie and Freddie.
Investors' doubts about the companies' viability have sent interest rates on those securities soaring. Despite regulators' July promise that they would step in to save the mortgage companies, investors are still demanding rates of 2.25% to 2.45% above Treasuries, LaMalfa said. Historically, the spread has been 1.25%.
With the government now taking over the companies and minimizing the risk associated with their debt, investors may be willing to ease off their need for higher rates.
High borrowing costs have led, in part, to a decline in mortgage borrowing. Applications are down 27% from a year ago, according to the Mortgage Bankers Association.
Also Fannie (FNM, Fortune 500) and Freddie (FRE, Fortune 500) will likely reverse their recent pullback from the mortgage markets. In early August, when they reported just over $3 billion in combined second-quarter losses, both said they would scale back their purchases of mortgage securities to preserve their capital.
Tight standards and fees will remain
Borrowers, however, shouldn't expect the ever-tightening lending standards to ease. With defaults and delinquencies multiplying and home prices falling, Fannie and Freddie will likely keep a close eye on underwriting practices. Lenders are demanding credit scores above 700 these days, up from 620 in the past, and downpayments of 20%, up from zero in some cases, experts said.
The mortgage titans have also increased their fees in hopes of shoring up their finances. Just last month, Fannie Mae announced higher surcharges for loans to weaker borrowers. For instance, applicants with credit scores between 640 and 659 who are putting down 15% to 20% will pay an additional 2.25% charge.
The same borrower would pay 1.7 percentage points mor e because of higher fees and rates for the same loan today as he or she would have paid 18 months ago, LaMalfa said.
If the market continues to worsen, standards could further tighten and fees could rise more, he said.
"We may have more stringent standards over the next few weeks because of the continued deterioration," he said. "We don't know where the bottom is yet. It's a falling knife."
Also, while investors have initially cheered regulators' moves in the past, their confidence has been short-lived. It remains to be seen whether and for how long Sunday's action will placate them, said Kurt Eggert, law professor at the Chapman University School of Law. And if investors' spook again, rates will rise.
"If I were an investor, I'm not sure this would be enough to make me want to jump in with a lot of money," Eggert said.
First Published: September 7, 2008: 2:53 PM EDT
The next shoe to drop in housingU.S. seizes Fannie and FreddieRescue cost: The big unknown
Looking for spoilers and reviews
NEW YORK (CNNMoney.com) -- Mortgage applicants rejoice!
Sunday's federal takeover of Fannie Mae and Freddie Mac will likely translate into lower mortgage rates and greater availability of credit, experts said. Rates could drop by 1 percentage point from the stubbornly-high 6.39% for a 30-year fixed rate mortgage.
"This could be good for would-be homeowners," said Tom LaMalfa, managing director, Wholesale Access, a research and consulting firm. "It would reduce the cost of financing at the new and improved Fannie and Freddie."
The government bailout is aimed at making mortgages easier to obtain and afford. By shoring up the mortgage financing giants, they can continue buying mortgages from lenders and injecting much-needed cash into the system.
"Fannie Mae and Freddie Mac are crucial to turning the corner on housing," said Treasury Henry Paulson. "Therefore, the primary mission of these enterprises now will be to proactively work to increase the availability of mortgage finance. Our economy and our markets will not recover until the bulk of this housing correction is behind us."
But the news isn't all good. With Friday's report that foreclosures and delinquencies are at all-time highs, Fannie and Freddie are expected to maintain - if not ratchet up - tighter lending standards. And the fees they have introduced for borrowers with weaker credit histories won't go away anytime soon.
High borrowing costs
Mortgage rates borrowers pay are dependent on the yields that investors demand when buying mortgage-backed securities from Fannie and Freddie.
Investors' doubts about the companies' viability have sent interest rates on those securities soaring. Despite regulators' July promise that they would step in to save the mortgage companies, investors are still demanding rates of 2.25% to 2.45% above Treasuries, LaMalfa said. Historically, the spread has been 1.25%.
With the government now taking over the companies and minimizing the risk associated with their debt, investors may be willing to ease off their need for higher rates.
High borrowing costs have led, in part, to a decline in mortgage borrowing. Applications are down 27% from a year ago, according to the Mortgage Bankers Association.
Also Fannie (FNM, Fortune 500) and Freddie (FRE, Fortune 500) will likely reverse their recent pullback from the mortgage markets. In early August, when they reported just over $3 billion in combined second-quarter losses, both said they would scale back their purchases of mortgage securities to preserve their capital.
Tight standards and fees will remain
Borrowers, however, shouldn't expect the ever-tightening lending standards to ease. With defaults and delinquencies multiplying and home prices falling, Fannie and Freddie will likely keep a close eye on underwriting practices. Lenders are demanding credit scores above 700 these days, up from 620 in the past, and downpayments of 20%, up from zero in some cases, experts said.
The mortgage titans have also increased their fees in hopes of shoring up their finances. Just last month, Fannie Mae announced higher surcharges for loans to weaker borrowers. For instance, applicants with credit scores between 640 and 659 who are putting down 15% to 20% will pay an additional 2.25% charge.
The same borrower would pay 1.7 percentage points mor e because of higher fees and rates for the same loan today as he or she would have paid 18 months ago, LaMalfa said.
If the market continues to worsen, standards could further tighten and fees could rise more, he said.
"We may have more stringent standards over the next few weeks because of the continued deterioration," he said. "We don't know where the bottom is yet. It's a falling knife."
Also, while investors have initially cheered regulators' moves in the past, their confidence has been short-lived. It remains to be seen whether and for how long Sunday's action will placate them, said Kurt Eggert, law professor at the Chapman University School of Law. And if investors' spook again, rates will rise.
"If I were an investor, I'm not sure this would be enough to make me want to jump in with a lot of money," Eggert said.
First Published: September 7, 2008: 2:53 PM EDT
The next shoe to drop in housingU.S. seizes Fannie and FreddieRescue cost: The big unknown
Looking for spoilers and reviews
Lewisville ISD
The Lewisville Independent School District prides itself on its long-standing tradition of educational excellence. With more than 18 schools receiving the “Exemplary” rating and 28 schools earning the “Recognized” rating by the Texas Education Agency, families move into LISD because of our commitment to student success. LISD also has six National Blue Ribbon Schools of Excellence, which is the highest designation a school can earn by the United States Department of Education.
Annually, our district receives numerous academic accolades and finance awards, which is a reflection of our quality teachers and staff. LISD’s highly qualified team is what makes our district a premiere school system in Texas!
Serving more than 50,000 students, our district has been experiencing rapid growth during the past 15 years, and will continue to grow on average between 1,200-2,000 new students annually until 2016. In eight short years, LISD is projected to serve approximately 60,000 students.
Encompassing 127-square miles, LISD serves all of or portions of thirteen municipalities including Argyle, Carrollton, Copper Canyon, Double Oak, Flower Mound, Frisco, Grapevine, Highland Village, Hebron, Lewisville, Plano and The Colony.
Click on the link below and go directly to Lewisville ISD web site.
http://www.lisd.net/info/about/index.html
Annually, our district receives numerous academic accolades and finance awards, which is a reflection of our quality teachers and staff. LISD’s highly qualified team is what makes our district a premiere school system in Texas!
Serving more than 50,000 students, our district has been experiencing rapid growth during the past 15 years, and will continue to grow on average between 1,200-2,000 new students annually until 2016. In eight short years, LISD is projected to serve approximately 60,000 students.
Encompassing 127-square miles, LISD serves all of or portions of thirteen municipalities including Argyle, Carrollton, Copper Canyon, Double Oak, Flower Mound, Frisco, Grapevine, Highland Village, Hebron, Lewisville, Plano and The Colony.
Click on the link below and go directly to Lewisville ISD web site.
http://www.lisd.net/info/about/index.html
Incentives for Old Town.
Old Town Incentives
The City of Lewisville is positioned to aggressively participate in both public and private projects that will bring new value into the Old Town area. This participation may be in the form of land acquisition, financing, fast-track permitting, tax relief, infrastructure assistance or other forms of public/private partnerships. Projects that are being sought are single family development/redevelopment, multi-family projects, office uses, retail establishments and mixed-use residential/commercial projects. Incentive consideration for projects in Old Town Lewisville will be based upon several factors including but not limited to location, type of project, economic impact of the project to Old Town specifically, Lewisville as a whole, and/or architectural style of the project.Old Town Center District
Retail Incentive
Retail or Restaurant establishments constructing a new facility or making interior improvements to an existing building may qualify for a reimbursement of costs associated with finish out. Click on the link below for further details.Retail Incentive Information Tax Increment Reinvestment Zone #1 (TIRZ)
Those projects that are within the boundaries of the Lewisville Tax Increment Reinvestment Zone, Number One, or modifications thereto may qualify for the following incentives. It is the intent of this incentive area to provide additional options to retail, restaurant, office and higher-density residential projects that are enhancing the aesthetic appearance of properties to a character that is harmonious with Old Town Lewisville. Aesthetic Incentive Projects that are will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the Downtown Investment Area may be considered for an Aesthetic Incentive. Such Incentives may only be used for exterior improvements on properties which promote and enhance the Old Town character and comply with signage and architectural standards, or a valid waiver thereof. Projects that are approved to receive an Aesthetic Incentive may be required to enter into an Architectural Façade Easement with the City of Lewisville. Construction Materials Sales Tax Rebate Incentive Projects that will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the TIRZ #1 may be considered for a rebate of Sales Taxes. Sales Tax rebates will only be considered for the City of Lewisville portion of sales taxes reported and paid in the City of Lewisville on construction materials or supplies directly related to the approved project. Retail & Restaurant Establishments Incentive Retail & Restaurant Establishments that will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the TIRZ #1 may be considered for a rebate of Sales and Use Taxes and/or Alcoholic Beverage Sales and Use Taxes. Sales Tax rebates will only be considered for the City of Lewisville portion of sales taxes reported and paid in the City of Lewisville. Incentive will be a maximum of one-hundred percent (100%) for three (3) years.Beautification Program To provide a program that encourages the construction, protection or restoration of public features that provides a unique atmosphere and amenity to both pedestrians and motorists within the Lewisville Tax Increment Reinvestment Zone, Number 1. Such features should improve the visual appearance of the Old Town area, which is critical both to the success of individual businesses and to the economic health and vitality of the district and City as a whole. Eligible Improvements. Funds shall be used for the enhancement of exterior beautification elements. Interior renovation and restoration elements of the project are not eligible for funding under this program.
Some of the eligible improvements are:CanopiesSignsPublic ArtClocksWater FeaturesLandscapingSeating areas or Benches
Old Town IncentivesThe City of Lewisville is positioned to aggressively participate in both public and private projects that will bring new value into the Old Town area. This participation may be in the form of land acquisition, financing, fast-track permitting, tax relief, infrastructure assistance or other forms of public/private partnerships. Projects that are being sought are single family development/redevelopment, multi-family projects, office uses, retail establishments and mixed-use residential/commercial projects. Incentive consideration for projects in Old Town Lewisville will be based upon several factors including but not limited to location, type of project, economic impact of the project to Old Town specifically, Lewisville as a whole, and/or architectural style of the project.Old Town Center District
Retail Incentive
Retail or Restaurant establishments constructing a new facility or making interior improvements to an existing building may qualify for a reimbursement of costs associated with finish out. Click on the link below for further details.Retail Incentive Information Tax Increment Reinvestment Zone #1 (TIRZ)
Those projects that are within the boundaries of the Lewisville Tax Increment Reinvestment Zone, Number One, or modifications thereto may qualify for the following incentives. It is the intent of this incentive area to provide additional options to retail, restaurant, office and higher-density residential projects that are enhancing the aesthetic appearance of properties to a character that is harmonious with Old Town Lewisville. Aesthetic Incentive Projects that are will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the Downtown Investment Area may be considered for an Aesthetic Incentive. Such Incentives may only be used for exterior improvements on properties which promote and enhance the Old Town character and comply with signage and architectural standards, or a valid waiver thereof. Projects that are approved to receive an Aesthetic Incentive may be required to enter into an Architectural Façade Easement with the City of Lewisville. Construction Materials Sales Tax Rebate Incentive Projects that will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the TIRZ #1 may be considered for a rebate of Sales Taxes. Sales Tax rebates will only be considered for the City of Lewisville portion of sales taxes reported and paid in the City of Lewisville on construction materials or supplies directly related to the approved project. Retail & Restaurant Establishments Incentive Retail & Restaurant Establishments that will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the TIRZ #1 may be considered for a rebate of Sales and Use Taxes and/or Alcoholic Beverage Sales and Use Taxes. Sales Tax rebates will only be considered for the City of Lewisville portion of sales taxes reported and paid in the City of Lewisville. Incentive will be a maximum of one-hundred percent (100%) for three (3) years.Beautification Program To provide a program that encourages the construction, protection or restoration of public features that provides a unique atmosphere and amenity to both pedestrians and motorists within the Lewisville Tax Increment Reinvestment Zone, Number 1. Such features should improve the visual appearance of the Old Town area, which is critical both to the success of individual businesses and to the economic health and vitality of the district and City as a whole. Eligible Improvements. Funds shall be used for the enhancement of exterior beautification elements. Interior renovation and restoration elements of the project are not eligible for funding under this program.
Some of the eligible improvements are:CanopiesSignsPublic ArtClocksWater FeaturesLandscapingSeating areas or Benches
Click on the link below for more city information on Old Town.
http://www.cityoflewisville.com/wcmsite/publishing.nsf/Content/Old+Town+
The City of Lewisville is positioned to aggressively participate in both public and private projects that will bring new value into the Old Town area. This participation may be in the form of land acquisition, financing, fast-track permitting, tax relief, infrastructure assistance or other forms of public/private partnerships. Projects that are being sought are single family development/redevelopment, multi-family projects, office uses, retail establishments and mixed-use residential/commercial projects. Incentive consideration for projects in Old Town Lewisville will be based upon several factors including but not limited to location, type of project, economic impact of the project to Old Town specifically, Lewisville as a whole, and/or architectural style of the project.Old Town Center District
Retail Incentive
Retail or Restaurant establishments constructing a new facility or making interior improvements to an existing building may qualify for a reimbursement of costs associated with finish out. Click on the link below for further details.Retail Incentive Information Tax Increment Reinvestment Zone #1 (TIRZ)
Those projects that are within the boundaries of the Lewisville Tax Increment Reinvestment Zone, Number One, or modifications thereto may qualify for the following incentives. It is the intent of this incentive area to provide additional options to retail, restaurant, office and higher-density residential projects that are enhancing the aesthetic appearance of properties to a character that is harmonious with Old Town Lewisville. Aesthetic Incentive Projects that are will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the Downtown Investment Area may be considered for an Aesthetic Incentive. Such Incentives may only be used for exterior improvements on properties which promote and enhance the Old Town character and comply with signage and architectural standards, or a valid waiver thereof. Projects that are approved to receive an Aesthetic Incentive may be required to enter into an Architectural Façade Easement with the City of Lewisville. Construction Materials Sales Tax Rebate Incentive Projects that will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the TIRZ #1 may be considered for a rebate of Sales Taxes. Sales Tax rebates will only be considered for the City of Lewisville portion of sales taxes reported and paid in the City of Lewisville on construction materials or supplies directly related to the approved project. Retail & Restaurant Establishments Incentive Retail & Restaurant Establishments that will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the TIRZ #1 may be considered for a rebate of Sales and Use Taxes and/or Alcoholic Beverage Sales and Use Taxes. Sales Tax rebates will only be considered for the City of Lewisville portion of sales taxes reported and paid in the City of Lewisville. Incentive will be a maximum of one-hundred percent (100%) for three (3) years.Beautification Program To provide a program that encourages the construction, protection or restoration of public features that provides a unique atmosphere and amenity to both pedestrians and motorists within the Lewisville Tax Increment Reinvestment Zone, Number 1. Such features should improve the visual appearance of the Old Town area, which is critical both to the success of individual businesses and to the economic health and vitality of the district and City as a whole. Eligible Improvements. Funds shall be used for the enhancement of exterior beautification elements. Interior renovation and restoration elements of the project are not eligible for funding under this program.
Some of the eligible improvements are:CanopiesSignsPublic ArtClocksWater FeaturesLandscapingSeating areas or Benches
Old Town IncentivesThe City of Lewisville is positioned to aggressively participate in both public and private projects that will bring new value into the Old Town area. This participation may be in the form of land acquisition, financing, fast-track permitting, tax relief, infrastructure assistance or other forms of public/private partnerships. Projects that are being sought are single family development/redevelopment, multi-family projects, office uses, retail establishments and mixed-use residential/commercial projects. Incentive consideration for projects in Old Town Lewisville will be based upon several factors including but not limited to location, type of project, economic impact of the project to Old Town specifically, Lewisville as a whole, and/or architectural style of the project.Old Town Center District
Retail Incentive
Retail or Restaurant establishments constructing a new facility or making interior improvements to an existing building may qualify for a reimbursement of costs associated with finish out. Click on the link below for further details.Retail Incentive Information Tax Increment Reinvestment Zone #1 (TIRZ)
Those projects that are within the boundaries of the Lewisville Tax Increment Reinvestment Zone, Number One, or modifications thereto may qualify for the following incentives. It is the intent of this incentive area to provide additional options to retail, restaurant, office and higher-density residential projects that are enhancing the aesthetic appearance of properties to a character that is harmonious with Old Town Lewisville. Aesthetic Incentive Projects that are will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the Downtown Investment Area may be considered for an Aesthetic Incentive. Such Incentives may only be used for exterior improvements on properties which promote and enhance the Old Town character and comply with signage and architectural standards, or a valid waiver thereof. Projects that are approved to receive an Aesthetic Incentive may be required to enter into an Architectural Façade Easement with the City of Lewisville. Construction Materials Sales Tax Rebate Incentive Projects that will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the TIRZ #1 may be considered for a rebate of Sales Taxes. Sales Tax rebates will only be considered for the City of Lewisville portion of sales taxes reported and paid in the City of Lewisville on construction materials or supplies directly related to the approved project. Retail & Restaurant Establishments Incentive Retail & Restaurant Establishments that will construct a new facility or make exterior façade improvements to an existing facility for which the architectural design and construction of the materials and colors of the facility and signage are visually harmonious with the overall appearance, history and cultural heritage of the TIRZ #1 may be considered for a rebate of Sales and Use Taxes and/or Alcoholic Beverage Sales and Use Taxes. Sales Tax rebates will only be considered for the City of Lewisville portion of sales taxes reported and paid in the City of Lewisville. Incentive will be a maximum of one-hundred percent (100%) for three (3) years.Beautification Program To provide a program that encourages the construction, protection or restoration of public features that provides a unique atmosphere and amenity to both pedestrians and motorists within the Lewisville Tax Increment Reinvestment Zone, Number 1. Such features should improve the visual appearance of the Old Town area, which is critical both to the success of individual businesses and to the economic health and vitality of the district and City as a whole. Eligible Improvements. Funds shall be used for the enhancement of exterior beautification elements. Interior renovation and restoration elements of the project are not eligible for funding under this program.
Some of the eligible improvements are:CanopiesSignsPublic ArtClocksWater FeaturesLandscapingSeating areas or Benches
Click on the link below for more city information on Old Town.
http://www.cityoflewisville.com/wcmsite/publishing.nsf/Content/Old+Town+
Subscribe to:
Posts (Atom)
