Updated 10/04/2019. Back in 1990 - I started the Police Academy in Los Angeles on 10/09/1990.
I'll never forget that crisp morning when I showed up to stand on the black line in a suit to get yelled at by strangers.
Nothing could have been more wrong. I mean, we could not do anything right. I guess that was the point. I have to say I did enjoy every minute about the experience, upon reflection.
At the time, not so much.
But, I think it made me a cop that was able to survive and a Great realtor!
FF - 10/04/2019, Here I sit to educate my clients on our Santa Clarita home experts blog and write about the current state of the real estate market in the Santa Clarita Valley cities.
If you have been working with us, we have had several domain changes throughout the years, but we have left those sites intact, JIC a past client did not get the memo.
30 Year Fixed interest rates 3.625%
Two interest rates indicated on Mortgage News Daily (.com).
The great thing is money is cheap to obtain. Two "associated factors" that make cheap be hard is the fact lenders seem to be making less, the refinance market is booming and it's still like having a team of people crawl into you to make sure you are the "real thing" and not someone faking their ability to obtain a home loan.
Lenders Making Less:
Something that has happened twice in the past with clients that are buying a home with 20% down payment, is they are being sold an Impound Account with their 20% down non-PMI loan.
Actually, being sold is a bit too assuming. They are being "told" that their loan has an impound account attached. Basically this 20 % down home buyers, who have done a great job saving 20% down payment, is going to pay someone else to make their property tax payment and to pay their home insurance.
There are a couple of ways to pay your home insurance. You can pay it each month or pay it yearly - or a variation thereof.
When it comes to property taxes in Los Angeles County - you pay those(property taxes) twice a year.
I could not for the life of me figure out why a lender, on a 20% or more down loan, would be stating that an "impound" account would be necessary.
Usually, it was those who did not put 20% down payment, those buyers who were using an FHA loan or a VA loan who needed to come up, as part of their closing costs, the extra money to pay 6 months of taxes and 1 year of home insurance ahead of time.
But now? On a 20% down homebuyer? Yes, it happened by a lender that we work with and it happened by a completely another lender that we have never even heard of.
In one case, the case of a lender that we work with, the dad to the son who he referred to us was present during the pitch.
He could not believe it and it was the reason why he stated he was not going to work with our lender and why he will be taking is loan business elsewhere.
When he told me about it, it was a first one on me also. Is this a new way of doing business? Is this something that is new on the lending front? Maybe the lender is making better money on a loan that is impounded when it's sold?
I betcha, it's the last one.
Just in from a lender, we work with, "Impounds are not required on an 80% LTV, there must be more to the story. If not the loan officer is not providing accurate info."
LTV - Loan to Value. When a home is for sale and after the buyer has their offer accepted, there will be an appraisal if a loan is to be obtained to buy it. Of course, most times this happens. If the home passes the appraisal for a specific amount and if that amount is the price offered which was accepted, and if the home buyer is putting 20% down, it should fit nicely! Nor requiring
Lenders doing a bunch of Re-Fi's
When interest rates drop significantly, people refinance.
When you have 10 years left on a 30-year mortgage - should you refi?
Something to remember, once you refinance from a 10-year mortgage to a lower interest rate, you are more than likely going to be in a 30-year mortgage again.
Ask if you are not sure on the terms, also get what they tell you in writing to be sure you are not being sold a false bill of goods.
The Refinance market is overwhelming Local Lenders
Did you realize that the interest rate reduction was supposed to have a different effect on the real estate market as a whole? The original intention was to spark the housing economy - 7 out of 10 professions benefit from home sales - If I remember the statistic correctly.
Any it's a bunch. Having housing to buy at a price that one can afford is necessary and great.
However, while refinancing was expected, the inventory in the Santa Clarita Valley has been so low for such a long time, it was suspected those sellers were going to be selling, not refinancing.
That in turn, would have sparked off the Santa Clarita home buyer drive and that would have kicked off the Santa Clarita housing market.
Instead of that happening, we just fizzled. There were no big moves. There were no additional closings. The inventory further reduced and the buyer drive just slowed down.
The potential number of homes entering the Santa Clarita real estate market was stifled by the amount of refinances which are currently taking place.
Then there is the 2020 election. Then there are the times the FED is going to be meeting - next is October 2019. What will happen?
The concern I have is that the new home builders are going to overbuild, which will have a very negative impact on our local economy, not to mention real estate.
I hope they are watching the market in order to keep the re-sale market-moving alongside the new housing market.
I will keep you posted as to the events in the Santa Clarita housing markets. We give weekly updates and update our Santa Clarita real estate radio page often. I'm Connor with HONOR MacIvor and when you are ready, reach out to me directly at 661.400.1720 and I will be of great service!