Long Beach Mortgage Rates Report: May 12, 2008

Long Beach mortgage rates dropped, then rose to their original level, last week.  Ive been advising  mortgage borrowers to lock all rates at application, regardless of closing date.  Did I miss an opportunity to improve clients rates?  I dont think so.  My approach is more one of limiting losses than improving gains and last week, I thought there was a threat of higher mortgage rates in Long Beach; I still do.

Inflation data is released Wednesday and Unemployment data is due out Thursday.  These two figures could be the tempest in the teapot and really affect mortgage rates.  We just think there is too much risk to be floating (holding out for a better rate).  If markets overreact (and they usually do) well change that recommendation but for now, we think its prudent to lock your mortgage rates.

Currently, the 5/1 ARM offers the best value at 4.875% wholesale rate.  The 30 year fixed rate loan is 5.875% wholesale rate.  While there is risk in losing the rate after 5 years, most borrowers dont hold a mortgage that long.  If you are thinking of moving in the next few years, it would be well to examine the benefits of refinancing your home loan to a low 5/1 ARM rate.

Contact me at (858)-777-9751 with more questions.

PS:  Congratulations to our host, Laurie Manny.  The success of Long Beach Real Estate Home has quickly drawn the admiring eyes of the national real estate industry.  She is one of the featured speakers at the BloodhoundBlog Unchained Social Media Marketing Conference brought to you by Zillow.com, in Phoenix, next week.  She is also invited to be on a panel at the Inman Real Estate Connect and has participated in California Association of REALTOR discussions, about new media.

Lauries early adoption of new media technologies has given her a decided advantage over real estate agents whom are still relying on traditional media to sell homes.  If youre reading this, you are probably included in the 85% of home buyers who start their search online.

Posted on 2008-05-12 @ 8.12:07 am by Brian.Brady

Long Beach Own Your Owns-OYO-OYOs-Condo Conversions-Income Properties in Long Beach

Long Beach Own Your Owns - OYOs

What the Heck is an OYO?

Why would I want to own one?

Long Beach has been home to many Own Your Owns over the years. They can be found throughout Downtown Long Beach, Alamitos Beach, Bluff Park and into Belmont Heights; older, usually 2 or 3 story buildings tucked between newer and sometimes taller buildings.   Recent Condo Conversions have trimmed the numbers of available OYOs considerably. OYOs used to be a really good investment, selling for considerably less than Long Beach Condos, they proved to be a very desirable purchase. When they successfully converted to condominiums owners realized large profits.  Often condo conversion was the motivation for purchasing an Own Your Own. 

Many buyers ask about OYOs.  They want to know if they are the same as a condo, or more like a stock cooperative. 

OYOs are similar in ownership to condos in that they are both fee simple ownership with individual tax bills and deeds. OYOs are a pre-condominium form of ownership, mostly built in the 50s. They generally sell for less than condos and are occasionally candidates for condo conversion, if they qualify, at which time they increase in value dramatically. Often OYOs will not have sufficient parking to qualify for condo conversion. 

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Posted on 2008-05-05 @ 9.18:26 pm by Laurie.Manny

Can We Get Long Beach Homeowners To Pay Back Their Mortgages?

HR 5830: The FHA Housing Stabilization and Homeowership Retention Act of 2008 , is designed to provide relief for homeowners in trouble by refinancing their loan to reflect lower housing valuations.  If the current lender 'forgives 10% of the loan balance, it allows a homeowner to enter into an equity sharing type of arrangement for a refinanced loan.

I offered my analysis of and support for this bill, on BloodhoundBlog.  A discussion arose about a change on social mores, most often associated with younger, first time home buyers.  It seems that the compunction that comes with a mortgage default has disappeared.

My questions for discussion are:

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Posted on 2008-05-04 @ 6.54:07 pm by Brian.Brady

Long Beach California Real Estate Sales

Long Beach California Real Estate Sales Update

January - April 2008

The real estate market in Long Beach has begun to shift.  We have witnessed a steady rise in homes and condos for sale in Long Beach since the beginning of the year, as is witnessed by the chart provided.  Buyers who have been waiting out the real estate market hoping to get that incredible deal are now buying those Long Beach homes and condos they have been wanting. 

Interest rates are still great, although lenders are tightening up on lending standards.  It is getting more difficult to procure a home loan unless your income and credit scores are high, your credit history is good and your debt ratio is low.  As we progress into the summer months lending standards will become even more stringent.   

• Long Beach Mortgage Rates Reports

If you are one of the consumers who has been sitting on the sidelines waiting for Long Beach real estate prices to drop before you begin your buying process, you might want to speak to a mortgage lender pretty soon.  Run your credit, find out if you qualify for a home loan sufficient to make that purchase.  You may also decide to go ahead and buy now while Long Beach prices are low, some concessions are still being granted and home loans are still available to consumers with less than pristine credit. 

• Long Beach Homes & Condos-7 Steps to Pre-Home Purchase Preparedness 
• Buying Your Long Beach Home - Getting Started 
• Long Beach Home Search-Where do I start? 
• New FHA Loan Limit For Long Beach Homes
  
• Long Beach Homes - To Buy or Not To Buy? 
• Long Beach Homes and Condos - Negotiating Your Offer 
• Long Beach Home Ownership - 1st Time Home Buyers and The American Dream 

 Real Estate Sales in Long Beach California - 2008 - Year to Date

• Long Beach Homes and Condos Market Report-Jan-Dec Home Sales 2007 
• Long Beach Income Property Market Report-January-December 2007-Including Signal Hill 
• Downtown Long Beach Stock Co-operatives 

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Posted on 2008-05-03 @ 7.37:51 pm by Laurie.Manny

Long Beach Mortgage Rates Report: May 2, 2008

Lets lock all mortgage rates at application, regardless of when its closing.  I think this is about as good as it gets for a while.  I still see 30 year fixed rates a tad under 6% (5.875%) but the good economic data, released today, could drive Long Beach mortgage rates up next week.

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http://www.lauriemanny.com/003166

Posted on 2008-05-02 @ 7.12:47 am by Brian.Brady