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You’re invited!
Please email thedavemurrayteam@gmail.com to RSVP.
For more information on the home, see the listing or virtual tour.
FHA Raises Fees and Loan Standards
As reported by the AP on Wednesday, the Federal Housing Administration will soon be raising their fees and tightening their standards in order to bring more revenue for the agency. Expected to occur in spring or early summer, two major changes will be made:
1. The upfront mortgage premium will increase, from 1.75% to 2.25%. “A borrower taking out a $200,000 mortgage would pay a $4,500 fee, for example, rather than the current fee of $3,500 (AP).”
2. To qualify, borrowers will need a credit score of at least 580. (There was previously no standard credit score, although some lenders still required one.) If a borrower’s score is lower than 580, they will need at least 10% for downpayment.
The FHA does not make actual loans, but offers insurance against default. The new changes are considered some of FHA’s biggest steps in history addressing risk.
Great Family Home in 78704!
You can walk to the Barton Hills Greenbelt from this home in the coveted Barton Hills area of 78704.
This well maintained home is a 4 bed/2 bath, 1,954 square feet, on a quarter acre lot.
Updates include a new roof, new gutters, new interior doors, new paint (interior and exterior), new carpet, new bath tile, and landscaping.
Inside the home is a big living area, with brick fireplace and doors to the patio. The kitchen is very clean, with wood cabinets and a breakfast area. 
At the entry is formal dining. The floorplan features a private, second floor master suite with walk in closet and full bath, and three bedrooms with a full bath in a wing of the home.
The patio is the perfect place for sitting in the shade, enjoying a view of the large, well maintained yard and mature trees. A rainwater collection system wraps around the home. The location is fantastic, 5 minutes to downtown Austin and a short walk to the greenbelt.
You can read more about the home, and see a slideshow of pictures, by viewing the listing.
Rainwater Collection System; Back of Home
People Flocking to Texas, Report Says
Atlas Van Lines printed their yearly analysis of migration throughout the US and Canada, to see where people are moving, where they are leaving from and where they are staying put.
States experiencing growth include Texas, and neighbors New Mexico and Oklahoma. Only six other states have, in their analysis, grown: Virginia, North Carolina, Vermont, New Hampshire, Alaska, and for the first time in four years, Maryland. DC also experienced growth that is noted on the map.
As for the remaining states, most are “balanced” – about the same amount of people moving in as moving out. 13 states experienced significant loss.
You can see a map of their results, and where your state or province may be.
The Best Time of Year to Sell a Home: It’s Not What You Think
- Bella Tesoro
Conventional wisdom tells us that spring is the best time to sell a home. Especially in late spring and early summer: families can move without uprooting the kids from school, and curb appeal is at its peak. Demand goes up that time each year – this has all been true every year in the past decade.
But Forbes’ latest analysis says that home sellers should forget this conventional wisdom, that the best time to sell a home will be different this year. According to them, the extended tax credit that now expires in June, paired with the historically low interest rates, will see a busy selling market as early as, this year, February.
Says Nicole Hall, editor-in-chief of lendingtree.com: “This year, we’re anticipating sales will peak earlier…The best time to get your house on the market will be February or early March, and maybe even earlier if you want to avoid competition.”
Ultimately, however, much of the housing market’s strengths or failures depend entirely on your area, and more specifically, your neighborhood. Ask your local Austin Realtor about the market in your area to see when might be the best time for you to get the most out of your listing.
Big Changes in the Month of March
The Fed reiterated last week that in March of 2010, they will be ending their Mortgage Security Buyback program, a big part of what has kept interest rates low throughout 2009. It won’t be a sudden drop-off, rather a slow decrease in these purchases until March, when there will be no more.
With the Fed no longer spending the tens of billions of dollars monthly on mortgage securities, we will only have the private sector to fill in the gap. When that happens, we can naturally expect mortgage rates to rise. “The difference in monthly mortgage payments of 5% or 6% can be measured in tens of thousands of dollars over the life of a loan,” one writer explains.
The Atlantic Monthly writes that the credit markets need securitization, and warns that it will only become more difficult to borrow money (and those loans will come at higher interest rates) as the Fed program ends. “If you think banks aren’t lending enough now, then you’d find a world with no securitization much worse. Yet, that might be what you get if the Fed ends its program.”
Why would the Fed remove such a successful program? The analogy of a bike with training wheels is often given – if you want an economy to strengthen, recover and stand on its own, at some point you need to take the wheels off. If the Fed keeps rates too low for too long, inflation will rise higher and you will expect to see rates rise anyway. Home loan rates will increase as demand is met, naturally, with or without the Fed.
We can expect the end of the first quarter of 2010 to be a telling time for the economy’s recovery, but the heavy favor of the buyer and borrower is going to change. These will be some of the last months we’ll see that are such great markets for buying a home or land. If you are considering buying, you should begin your search now.
Mortgage Rates Rise, Near 5%
MSNBC reported yesterday that mortgage rates have risen for the second week, but still remain below five percent. According to Freddie Mac, the average fixed rate on a 30 year mortgage is at 4.94% this week, up from 4.81% last week, and up from the record low 4.71% on December 3rd.
The average rate on a 15 year fixed mortgage also rose, to 4.38% this week from 4.32% last week. Average rates on 5 year adjustable rate mortgages rose to 4.37 percent, up from 4.26 percent last week. Rates on 1 year adjustable-rate mortgages rose to 4.34 percent from 4.24 percent.
How Homeowners Spend
How would you spend $6,500?
Coldwell Banker announced results today from a survey on how homeowners would spend a $6,500 tax credit. Of the 1,000+ surveyed:
- 34% would pay off debts
- 29% would make home improvements
- 28% would save or invest it
- 6% would spend it on luxury items, like a shopping spree or vacation.
That’s 83%, or roughly 8 in 10, that would spend their money on “smart spending.”
“Our survey offers positive indicators that there are more existing homeowners considering a home purchase today than there were six months ago, and the majority of respondents say they would engage in ‘smart spending’ that would directly benefit the U.S. economy,” says Jim Gillespie, Coldwell Banker President and CEO.
Says housing market blogger Paul Owers of the Sun Sentinel:
“My two cents: Way more than 6 percent will end up splurging. Smart spending sounds good now, but most people won’t be able to help themselves once they get the money in hand.
“But what about you? What would you do with the $6,500?”
Home Upgrades that Sell
In September, we posted “Upgrades that Pay Off” – tips for home remodeling for those interested in investing in their property. In a money conscious market, sellers are interested in sure-fire ways to invest in their home to improve appeal to get the house sold, and value for when it is.
It was the question posed to the Austin-American Statesman yesterday: “How do we know if the time and money we put into upgrading the house for sale will be worth the investment and lead to an eventual sale?”
Look at the market. Think both big and small – find the big trends, but also look at the homes in your neighborhood (what is selling, and how long it’s taking). Visit your competition – tour homes as if you were a buyer to get ideas for when it’s your turn.
Perform a home pre-inspection. Surprises at home inspection kill many deals. Even if you elect not to fix a problem, you should ask for bids from three contractors or vendors to present to potential buyers, a standard practice to give buyers an idea of the cost to repair.
Target your potential buyer. Who would be most likely to shop for your home? If you live in an artsy, historic, or charming and quaint neighborhood, be sure to keep those elements and not overwhelm them. On the other hand, if homes around you are big and new, you might add lavish, luxury elements. Find an agent with expertise in your type of home, and who will discuss your ideas and options with you.
Holiday Happenings in Austin
Shows
Classic Holiday Movies at the Paramount
Ballet Austin’s The Nutcracker
“Santaland Diaries” (and more) at Zachary Scott Theater
Lights
The Zilker Tree Holiday Festival
Lady Bird Johnson Wildflower Center
Shopping
Keep Austin Bizarre Christmas Bazaar
Activities
Whole Foods Outdoor Ice Skating
Austin 360’s 2009 Holiday Guide
Courtesy of: The Dave Murray Team
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