ksl.com – Home sales in Salt Lake County increase
Home sales in Salt Lake County increase
via ksl.com – Home sales in Salt Lake County increase.
Aparently people are selling their homes?
Foreclosures Hit Rich and Famous
Foreclosures Hit Rich and Famous – WSJ.com.
So I thought to follow up with my earlier post today about Luxury Yachts, You all would enjoy to know even the Rich and Famous are suffering through this down Turn.
Apparently they can no longer afford the 20,000 sq. ft. mansions they call their 3rd homes! The one thing the article does not point out, is most of these guys get foreclosed on and because it was a portfolio type of a loan or whatever, it usually doesn’t even hit their credit. Which obviously wouldn’t matter, because most of the time, just because they are getting foreclosed on doesn’t mean they don’t have any cash. So as this article may portray they are hurting as the common person in society today, the rich and famous are not going to get any sympathy from this reader..:)
There are going to be some millionaires made in this recession, some of the properties are going to be sold for a steal. And when the market comes back, oh and you know it will because we are Americans and we have a very short term memory, they will sell for a bundle.. Enjoy..
Luxury Yachts. Luxury homes meet the ocearn.. A whole new term for the word YACHT
A Tour of Andrey Melnichenkos $300-million, Philippe Starck-Designed A Yacht – WSJ.com.
You know as I sit here looking at properties for all my clients I come across this website. In a down economy, I am glad to see the billionaire’s of the world can still aford life’s small luxury’s.. This is great, what they don’t tell you is how much it costs yearly to just maintain the enormous boats. What do the Rich and Famous do for vaccation. They go float on the ocean in one of these Yachts!
How many houses do you think I would need to sell to afford one of these guys? I want one..:)
On a lighter note, if you are looking for a good deal check out the bank repo site for UTAH>
FHA loan vs. Conventional Loans.. Utah Loan Officers at their best…
Enclosed is an attachment comparing FHA financing with Conventional Loan financing of a $200,000 home. Despite the concern everyone is having over the recent increase in the FHA Upfront Mortgage Insurance Premium from 1.75% of the base loan amount to 2.25% of that same amount, you can see in this attachment that a borrower still brings less to the closing on their new home and still has a lower monthly payment using FHA with a 3.5% down payment versus a conventional loan with a 5% down payment.
FHA financing has gone from less than 5% of the marketplace to approximately 38% now, since lenders are no longer making loan applications by taking a name, a social security number and having the applicant(s) fog a mirror as the old joke goes. If you are having to provide full documentation for a loan, why wouldn’t you want to keep more of your own money in your pocket in exchange for a lower monthly payment?
The other misconception about FHA is that it is restricted to first-time homebuyers for a smaller starter home. Actually in Salt Lake, Summit and Tooele Counties FHA loans currently go up to $729,750. Loans are being done here that were currently done exclusively in the Jumbo loan world.
Oh, one other point we didn’t talk about. We both have clients that are losing purchasing power with the current instability of interest rates. With the departure of the U.S. Government and their 1.25 Trillion Dollars of purchases in the mortgage securities market we’ve enjoyed an unprecedented 15-month period of essentially flat interest rates. That intervention by the government is over, as of the end of March.
Rates have risen by three-eights of a percentage point here in the past couple of weeks, which means a potential buyer could have bought nearly a $210,000 home for the same principal and interest payment instead of the $200,000 home outlined in this example sheet. I’m firmly convinced that many buyers, especially first-time homebuyers, who are sitting on the fence waiting for homes in the entry level of the market to drop in price, are going to be extremely disappointed.
We have people whom we have prequalified to purchase a home who are finally being motivated by the impending expiration of Federal income tax credits to get out in the market and shop. Some of them have seen homes they want to make an offer on and they find there are multiple offers pending for this particular and subsequently other homes in this price range.
Correct me if I am wrong, but doesn’t the Salt Lake Board of Realtors statistics show that the average home sales prices has leveled and that many are predicting next month’s sales figures will show a slight increase in average price?
Sure you can argue that those numbers reflect exactly that, an average sales price. But that also means for every home that may drop more in value, others are going up in value to keep the average price steady or even going up in value. The conversation about the lower end of the market is a completely different one than the one about upper-end homes.
* A FHA loan requires a 2.25% Upfront Mortgage Insurance Premium which is typically financed.
QUESTIONS? – Please feel free to contact John Simmons or Rod Bruin at Wells Fargo Home Mortgage.
Rod: 801-246-8852
John: 801-694-8065
10 year T-bill yield rises to 4%…
The big news today across the financial world is that the yield on 10 year Treasury bonds (also known as government debt) has risen to 4%. One of the reasons the yield rose is because there isn’t as much demand for goverment bonds right now. The lessened demand for this goverment debt was spurred on by the jobs that were created this past month, ‘stronger economic data’ according to the Wall street Journal, and the amount of debt the government has already issued to finance itself.
So what does all that hoopla and finance stuff mean to the everyday consumer??? It simply means you can expect interest rates on homes to be on the rise as well. Many economists and other experts have been predicting this for a long time, and now it appears it is happening. Mortgage rates are tied to the bond market, so expect mortgage rates to follow. So if you’re expecting rates to get even lower than they have been for the past year and a half, I believe you have waited too long.
Comments? Opinions? Let’s hear ‘em. Here’s the article:
http://www.reuters.com/article/idUSN0543127020100405
Brian Head Resort for sale, Ski Resort for Sale
Brian Head Resort for sale, but who will buy? – Salt Lake Tribune.
This is an interesting article. Brian Head Ski Resort is officially for Sale. Apparently it has been for sale several times before. Now I am a Norther Utah Ski fan. However, I would love to see a developer come in and create a master plan that would make it a true resort destination. Just one more reason to put Utah on the map. We love our ski resorts..
