Archives
April 2009
Apr. 29, 2009 - Mortgage Rates Teeter Just Above All Time Lows
Mortgage rates moved down slightly this week. Even though rates didn't move much this week we are still sitting just a hair above all time lows thanks to the drop from last week. This week the 30 year rate dropped from 4.82 to 4.80. The all time low was reached earlier this month when 30 year rates hit 4.78. Even though the official index puts rates at 4.80 we have seen people getting rates as low as 4.4. The 15 year rate stayed even at 4.48. Both the 5 and 1 year arm dropped this week. But since both rates are above the 30 year fixed rate no one is interested in getting Arm's unless it's the only available option. We listed rates for the last few weeks below.
Apr 23, 2009
30-yr 4.80 15-yr 4.48 5-yr ARM 4.85 1-yr ARM 4.82
Apr 16, 2009
30-yr 4.82 15-yr 4.48 5-yr ARM 4.88 1-yr ARM 4.91
Apr 09, 2009
30-yr 4.87 15-yr 4.54 5-yr ARM 4.93 1-yr ARM 4.83
Apr 02, 2009
30-yr 4.78 15-yr 4.52 5-yr ARM 4.92 1-yr ARM 4.75
Mar 26, 2009
30-yr 4.85 15-yr 4.58 5-yr ARM 4.96 1-yr ARM 4.85
One thing to note with mortgage rates is that although we are near all time lows banks are quite restrictive about who they are giving loans to. So although rates are low they are not available to a large segment of the population. This is different than 2002 the other low point in mortgage rates when lending standards were notoriously lax.
In addition to mortgage rates we calculated out mortgage payments for a 200k loan. First we looked we translated today's rates. Then we looked at rates from a week ago and rates from October 23.
Apr 23
30-yr $1049.33
15-yr $1527.94
5-yr ARM $1055.38
1-yr ARM $1051.74
Apr 16
30-yr $1051.74
15-yr $1527.94
5-yr ARM $1059.02
1-yr ARM $1062.66
Oct 23
30-yr $1204.24
15-yr $1657.6
5-yr ARM $1206.82
1-yr ARM $1101.93
As we can see mortgage rates and mortgage payments hardly moved in the last week. But we can see substantial drops from October 23. A mortgage payment on a 200k house has dropped $154.91 or 12.86 percent compared to what it would have been 6 months ago.
So what is our advice for people looking to purchase in the next few months? First of all I would start talking to lenders early on in their home search. If any problems surface with your credit report you have time to fix them and raise your credit score. Also if you fall in the myriad number of cases where lenders will not give out loans you have time to search for different banks that could give you a loan.
We also expect rates will stay down for the next month or so but we don't see mortgage rates falling much more. When the economy recovers we expect rates to rise rapidly. So potential borrowers should probably look to push up their purchase plans before rates start to rise.
Ki has lived in Austin for over a decade. He works in the Austin Tx real estate market. His site provides a free mortgage calculator along with updated information on mortgage rates.
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Apr. 29, 2009 - Family Law: Estate Planning 101
Estate planning empowers you and your family to carry out your wishes during and after your death. There are a lot of steps in the process to complete an estate plan. Before you do anything, though, you need to determine who you want to get what from your estate, and who will handle all those matters if you ever become incapacitated or die. Sometimes it can create discord to appoint an immediate family member as your power of attorney (POA) unless it is your spouse. It can also have the opposite effect if you decide on someone who is not a family member.
Give it quite a bit of thought before you decide. Discuss it with family members if you think it will help. You may also want to get some direction from friends and neighbors. You could make an appointment to get feedback from an estate attorney. Estate attorneys typically provide the first consul for free. Just make sure you're armed with specific direction before any estate documents are created.
Several pieces of the estate planning puzzle include the following:
* Estate Attorney - Although, you can do it yourself, you may want to hire an estate attorney to assist you in your estate planning. Estate attorneys should be well-versed on the federal and state laws that govern estates. This is especially advantageous when you don't have the time to research it and do it yourself.
* Power of Attorney (POA) - Who will you designate as your POA? This will be the person you will include in your will to conduct the affairs of your estate after you become incapacitated and after your death. You'll want to weigh this heavily before deciding. You may want to appoint two different POAs - one to address your health and one to address your financial affairs should you become incapacitated.
* Living Will - You need to complete one and sign it in the presence of a notary. This will dictate your wishes should you become too ill to determine the course of your own health.
* A Will - Your will determines how your property will be disbursed upon your death. It may also include provisions from your living will.
* Payment on Death (POD) - Contact your banks and securities holdings companies to complete a POD for each of your accounts. This will simplify the transfer of all assets in these accounts to go directly to your beneficiaries, bypassing the probate process.
* Transfer on Death (TOD) - Contact your mortgage company and other secured loans holders to complete a TOD. The TOD will facilitate the transfer of ownership from you to your beneficiaries upon your death eliminating the need for the assets to go through a lengthy and expensive probate process.
* Insurance Policies - Make sure you have 1st and 2nd beneficiaries designated on all your life insurance policies.
* Retirement Savings - Be sure to designate 1st and 2nd beneficiaries on your retirement savings programs.
* Business Interests - You'll need to designate a TOD on any business interests or holdings you have to ensure a smooth transition of assets to your beneficiaries upon your death.
* A Trust - Depending on your resources, you may want to create a trust to protect your assets. Creating a trust bypasses the probate process after your death. It directly transfers your assets from the trust to your beneficiaries.
Ki lives and works in Central Austin. He works in the Austin real estate market as a realtor. He created a website allowing buyers to search for Austin homes for sale. He also has profiles of different areas like Travis Country Austin.
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Apr. 29, 2009 - Austin Jobs and Housing Outlook
The Austin area added about 3,300 jobs between March 2008 and March 2009, according to the Texas Workforce Commission. That's the good news. The bad news is that the local unemployment rate has gone from 3.8 percent in March 2008 to 6.2 percent this past March. Austin is not immune to the recession after all.
What Austin is doing is weathering this recession better than most places. That 6.2 percent unemployment rate is well below the 8.5 percent national rate. While other major cities across the country, and even across Texas, are continuing the downward spiral of job losses, Austin may be slowing down. Just to give a little perspective on how bad it is in other places, the unemployment rate in Michigan is 12.6 percent and California is 11.2 percent.
The fickle unemployment cycle is all part of being a tech-savvy city for Austin. Semiconductor companies in particular are prone to slough off jobs as the business cycle dictates and it can take years for the tech sector to recover. The problem with this particular recession is its reach is much farther and the impact seems to go much deeper.
"Nationally, Microsoft Corp. is cutting jobs for the first time in its 22-year history; the U.S. Postal Service is shedding workers, too. Retailers cut 500,000 jobs last year and have announced 100,000 more layoffs this year," said a recent article in the Austin-American Statesman.
Austin is fortunate to not rely too heavily on any one sector of the economy. The city has certainly been affected by the hard hit the construction industry has taken, with a national unemployment rate of close to 21 percent. However, Austin is bolstered somewhat by government jobs and the University of Texas. Austin economic development consultant Angelos Angelou predicted recently in the Statesman that job growth in the months to come will be lower paying jobs in health care, education and government.
Jobs and housing seem to be the two numbers everyone pins their hopes on in this recession. While Austin is no Florida when it comes to the bad real estate news, the city is not immune to a real estate slump either. According to the Austin-American Statesman, sales of existing homes is at a six year low. While the housing decline has been slow, it does seem to have been steady with 22 consecutive months of sales declines.
"Conditions in the Austin real estate market remain weak, as they do across the state," said D'Ann Petersen, an economist with the Federal Reserve Bank of Dallasin a recent Statesman article. "The national recession has trickled down to Texas and the state, and its major metros are seeing job losses. The credit situation has also impacted the real estate sector in Austin, especially the higher-priced segment."
While the number of homes going on the market has gone down, the average sales price has held pretty steady for Central Texas overall. Houses stay on the market a little bit longer now than in years past, but the next few months are typically good months for home sales as people relocate over the summer. With the continued low mortgage rates and other incentives, it's a great time to buy a house.
Ki's company is located in Central Austin. He maintains a website with information on Austin Texas real estate. His site provides a search of the Austin MLS along with a blog covering Austin real estate.
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Apr. 20, 2009 - Tough Times for Shoppers and Shopping Centers
There are some conspicuous gaps along the store fronts of South Congress Avenue. Looking for Loft Furniture or Cowboy Cool on Second Street? Both these shops have closed in recent months. Thinking of stopping into long-time clothing shop Flipnotics on Barton Springs Road? Think again.
Americans in general are saving more and spending less these days and Austin seems to be no exception to this trend. With the economic outlook still murky and daily news mixed, people are thinking twice before heading out to the mall or their favorite local shops. Combine this with the freeze in the financial credit markets, and some businesses can no longer be in business.
And the smaller local stores aren't the only victims. Giants like the $192 million Hill Country Galleria are also facing foreclosure. Because of frozen financial markets the lenders are facing tough obstacles to refinance. The Bee Caves shopping Center opened in October of 2007 and included city hall and a public library. It is said that the mall got off to a slow start, but now has shops and restaurants in 70 percent of the available space.
The Hill Country Galleria ran into trouble earlier this year when a short-term construction loan came due and there was no avenue available for refinancing, according to the Austin-American Statesman. However, the owners feel confident that they will resolve this issue before the shopping center heads to the auction block.
Consumer spending dropped off sharply at the end of last year, according to the Associated Press. Shoppers seem to be sticking to the necessities such as food, causing same-store sales to fall for the sixth month in a row. Big discount retailers, like Wal-Mart are faring better than most. "Groceries, health products and accessories remain the most popular sellers, as consumers continue to shop cautiously amid massive job cuts and tight credit."
However, many analysts believe the picture is not as bleak as the numbers indicate. Because Easter was later this year, it is believed that March and April numbers combined will give a better indication of how retailers are doing. "On the surface, March is weaker than we've been seeing the last few months but we know that's not the underlying trend," he said. "The tone and comments from retailers really reflect a better performance than reported, but the jury is still out on whether we really have stabilized."
With stores going out of business or slashing inventories to stay solvent, there is the potential for great deals for the savvy shopper. The sales signs might be big and flashy, but that doesn't necessarily mean everything is a bargain. Pay careful attention to how things are worded and don't get carried away by the hype, particularly in the case of liquidation sales. It would stand to reason that these retailers just want to get the products out of the soon-to-be-closing-store as quickly and cheaply as possible, but that is usually not the case. These businesses still have to pay their creditors and need every penny they can get for their remaining products. While something may be marked down 70 percent, that is typically from the original highest price.
Ki Works as a realtor in the Austin real estate market. His site provides a free search of Austin MLS listings along with general information on Austin real estate for people curious in investing in the Austin market. It also has information about the Circle C Austin neighborhood.
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Apr. 20, 2009 - When to Consider a Short Sale
A short sale is when a lender agrees to take less than the principle due on your home to release you from the debt obligation. In today's real estate market, many cities are experiencing financial hardship. Financial hardship leads to bankruptcy and foreclosure. Bankruptcy and foreclosure often lead to short sales.
Of course, there is no need for a short sale if you can afford to leave your home on the market. You want to get the most money possible in the sale of your house. Probably the only circumstance under which you should consider a short sale is when you are desperate to sell your home. It may be that you are financially able to weather the loss, but, more likely, a short sale is due to financial hardship.
There are many homeowners who have had a home on the market for some time. Some are tired of waiting, have received a lowball offer and are financially able to take the loss. That's the best case scenario. Others, however, are suffering financially. They've lost their jobs or have experienced medical emergencies or other emergencies that have put them at great financial risk. They need to sell their homes to get out of the mortgage payments. They are upside down in their homes and a short sale looks like a good prospect.
Don't go gentle into that dark night of short sales. Before you do, you will need to ponder a few things. If the lender of your mortgage agrees to a short sale, they will report the account as closed to all major credit reporting bureaus. They will report the account as not paid in full, write off the remainder due on your mortgage as a loss and send you a 1099 for the difference. The IRS will consider the amount on the 1099 as income, and you will be taxed on that amount. If you parley up front, you may be able to negotiate a more favorable settlement with your lender.
When presenting your short sale offer to the lender, make sure you request up front that they report the account as paid as agreed. Get it in writing before you sign. This will eliminate the negative reporting on your credit report. In regards to the forgiven amount on your mortgage loan, the Mortgage Forgiveness Debt Relief Act of 2007 may apply to you. Up to $2 million of your mortgage debt can be excluded from IRS taxation on your principal residence. Up to $1 million applies for those married filing separately. Check with an accountant or the IRS website for more details.
The bottom line is that a short sale may be the only way you will be able to sell your home, and get out from underneath the weighty indebtedness of your mortgage. You may have to take a loss that could impact your credit score and increase your taxes. Make sure you do some heavy duty negotiating before you agree and sign on the dotted line.
Ki stayed in Austin after graduating from the University of Texas. He began working in Austin real estate. To aid buyers, he created a website where they can search Austin MLS listings. He also maintains a blog covering market updates on Austin Texas real estate.
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Apr. 20, 2009 - Chapter 7 or Chapter 11, Which Should I Use?
Have you done all you can to settle your debts, but do not have enough income to cover all the debts? Maybe you lost your job, like 90% of the most other individuals who file for bankruptcy. The creditors keep coming at you for collection. They call day and night. One has even begun court proceedings to attempt to collect the debt. What other option do you have but bankruptcy?
When deciding on bankruptcy, you need to determine if you will use a Chapter 7 or Chapter 11 Bankruptcy. Both bankruptcies have similarities as follows:
* Prior to filing. You will need to find a bankruptcy attorney, attend credit counseling and provide an exhaustive, written detail of all existing debts that qualify for inclusion.
* After filing. An automatic stay prohibits the majority of your creditors from pursuing further collection. You will be responsible for debt you accrue after filing for bankruptcy. Before your bankruptcy can be finalized, you are required to participate in a debt management program. Bankruptcy may stay on your credit for up to 10 years. Oftentimes, all unsecured debt is discharged through either bankruptcy process. Secured debt is not discharged.
There are distinct differences between the Chapter 7 and Chapter 11 Bankruptcy. You'll want to be educated on both prior to making a choice. Below are the differences to consider:
* Chapter 7 Bankruptcy. Before you are allowed to file, you are scrutinized for a means test. Your income cannot meet or exceed the median income for your state. You may lose some property in the bankruptcy; however, most filers do not. You may keep your primary residence, as long as you continue to make timely payments on the mortgage. The entire process usually takes 3 to 6 months to initiate and finalize. The only remaining debts are debts you accrued during the bankruptcy, unpaid child support payments, car payments, mortgage payments, student loans and maybe some medical bills. Credit reporting bureaus note a Chapter 7 Bankruptcy on your credit report for 10 years.
* Chapter 11 Bankruptcy. This is the bankruptcy you'll want to use to save your home from foreclosure. If your lender has initiated foreclosure proceedings against you, you need to act quickly. You will want to get this bankruptcy filed in the court prior to the scheduled sheriff's sale date on the courthouse steps. If you file after the sheriff's sale, you will lose ownership of your home. Some states have a provision to this that allows a redemption period. Most homeowners, however, are never able to redeem the property. This bankruptcy allows you to pay creditors and past due mortgage payments over time, typically over a period of 3 to 5 years. You will still be required to pay your current payments on time throughout the bankruptcy proceedings and beyond. Some of the disadvantages to this bankruptcy are that it will take you longer to repair your credit; and you have to pay additional maintenance fees to the court. Another glaring disadvantage is that many who choose this route often fail to follow through with the process, so they lose their home, anyway. Keep in mind that you cannot file for bankruptcy again until 6 months following the date your bankruptcy was dismissed. Credit bureaus sometimes remove a Chapter 11 Bankruptcy from your credit report as soon as 7 years after the discharge date.
Probably the tie breaker in making a decision as to which bankruptcy you will choose is whether you own a home, and whether it is in foreclosure. If your home is in foreclosure and you want to save it, then Chapter 11 Bankruptcy is for you. That is a decision, however, that only you can make. For more information on bankruptcies, check out the Federal Trade Commission (FTC) website. They have a wealth of information that may assist you in making your decision.
Ki moved to Austin to attend the University of Texas. After graduation, he stayed to work with Austin real estate. He maintains a website that has a free search of the Austin MLS along with information on current mortgage interest rates
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Apr. 20, 2009 - Mortgage Rates Fall: The 15 Year Mortgage Rate Hits All Time Low
Mortgage rates dropped this week from 4.87 to 4.82. They did not drop below the all time low of 4.78 that they hit two weeks ago. For the last month, for the most part, we have not seen a lot of movement and instead have just seen the 30 year mortgage rate just bouncing around near all time lows.
The 15 year mortgage did reach new all time lows this week dropping from 4.54 to 4.48. The previous low was 4.52 that was reached last week. The 5 Year ARM dropped from 4.93 to 4.88. This was also a new all time low but since the 5 year ARM is still above the rate for the 30 year fixed the 5 Year ARM is seeing very little interest. The 1 Year ARM oddly hit the highest level we have seen in a month. The 1 year ARM is now the highest of the four major mortgage products. Below are mortgage rates for the major mortgage products for the last few weeks.
Apr 16, 2009
30-yr 4.82 15-yr 4.48 5-yr ARM 4.88 1-yr ARM 4.91
Apr 09, 2009
30-yr 4.87 15-yr 4.54 5-yr ARM 4.93 1-yr ARM 4.83
Apr 02, 2009
30-yr 4.78 15-yr 4.52 5-yr ARM 4.92 1-yr ARM 4.75
Mar 26, 2009
30-yr 4.85 15-yr 4.58 5-yr ARM 4.96 1-yr ARM 4.85
Mar 19, 2009
30-yr 4.98 15-yr 4.61 5-yr ARM 4.98 1-yr ARM 4.91
In addition to mortgage rates we also wanted to look at actual mortgage payments. We took a 200k mortgage and translated into what a mortgage payment would be based on today's rates. We did the same thing with rates from last week and rates from 6 months ago.
Apr 16
30-yr $1051.74
15-yr $1527.94
5-yr ARM $1059.02
1-yr ARM $1062.66
Apr 09
30-yr $1057.8
15-yr $1534.07
5-yr ARM $1065.1
1-yr ARM $1052.96
Oct 16
30-yr 1258.87
15-yr 1702.87
5-yr ARM 1217.16
1-yr ARM 1093.28
We have not seen much movement in the last week. But compared to 6 months ago a mortgage on a 200k house has come down $207.13 or 16.45 percent.
So what else are we seeing in the mortgage market? While mortgage rates are low banks are being more restrictive about who they give out loans to. Banks are looking for high credit scores. In addition, they are more stringent when they are appraising properties. So it's pretty difficult to get loans on rough properties even if they are relatively cheap.
So what is our advice? Even if you just bought in the last 6 months it might be a good idea to investigate refinancing. If you plan on buying in the next few months I would look into your credit score now so you have time to fix any problems that might show up on your credit report.
So what do we expect to see moving forward? While the economy remains down we expect rates to continue bouncing around a current levels. But once the economy recovers rates should move up, perhaps as high as 15 percent. So we might see the highest and lowest all time rates in a period of less than 3 years.
Ki maintains a website that covers the Austin Texas real estate market. His site has information on mortgage rates along with a free mortgage calculator.
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Apr. 9, 2009 - The Future of Energy Could be Blowing in the Wind
The problem with wind energy, the collective wisdom goes, is that you can't control when the wind is going to blow. True, says Paul Sadler, the executive director of the Wind Coalition, but the energy created by wind power can be stored. And there lies the problem: how can Texas store and transmit wind energy?
According to Sadler in a recent Austin-American Statesman commentary, wind makes up 8 percent of our energy capacity. "But because of a lack of transmission lines, wind supplies only 4 percent of our power." Sadler believes Texas is at a crucial crossroad right now when it comes to wind energy. Texas has ample wind resources, as well as lawmakers willing to craft new energy policies in regard to harvesting the potential of wind energy. Combine all this with the Obama administration's stimulus package with money designated for green technologies, and the road seems paved for the future of wind energy.
Sadler is concerned that Texas lawmakers won't move quickly enough or be as aggressive about wind energy storage as they should be. "When you consider the day is coming when we will be able to store wind-generated electricity, and even further down the road the day is coming when we will run out of fossil fuels, the wise course is to craft energy policies that reflect tomorrow's energy realities."
Even if Texas lawmakers aren't ready to face that reality, Washington may be. Interior Secretary Ken Salazar, said in a recent hearing about meeting America's energy needs that wind-generated energy could someday replace coal-fired power plants. According to the Associated Press, Salazar told the Atlantic City audience, "The idea that wind energy has the potential to replace most of our coal-burning power today is a very real possibility."
Coal currently provides about half of America's electricity and representatives from the coal industry sounded less than impressed with Salazar's view of the future. Salazar said that ocean winds along the East Coast could generate five times the power of coal plants currently operating in the United States. The American Coal Council felt that claim was "a stretch."
Even advocates of wind energy concur that it would take hundreds of thousands of wind turbines to generate that much power. These turbines pose problems because they are considered unsightly by some and potentially dangerous to wildlife by others.
However, Salazar will host three other gatherings across the country to discuss the future of America's energy resources, highlighting solar, wind, waves, oil and gas. The Atlantic City Convention Center was chosen for the first venue because it boasts the nation's largest solar-paneled roof.
As for the future of wind energy, Texas will be the likely proving ground. Construction is set to start this summer on a wind farm off the coast of Galveston. According to the office of the Land Commissioner, Wind Energy Systems Technologies is expected to complete the 150-megawatt-per-year project in 2010. Salazar, Sadler and others will be watching this project carefully to see just how strong this wind of change can blow.
Ki graduated from the University of Texas, and now works as a realtor in the Austin Texas real estate market. He maintains a website, which has a searchable database drawing from Austin MLS and keeps a blog with monthly statistics on Austin real estate.
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Apr. 9, 2009 - Failure Is Not a Good Option
Now that America is deeply into the business of bailing out banks and big companies, it may be pointless to ponder the feasibility of it. But as Associated Press reporters put it in a recent article, "What if the government got out of the bailout business?" All those outraged Americans who picket Wall Street and vilify AIG executives might be surprised by the answer.
A good example of what happens when a large U.S. company fails is the story of Lehman Brothers Holdings Inc. When Lehman Brothers collapsed last September, it was "the biggest bankruptcy in U.S. history with a record $613 billion in debt." Because of the interconnectedness of global financial markets, this loss was felt in thousands of companies around the world and stocks took a nose dive.
"AIG is about five times bigger than Lehman Brothers, and we learned that Lehman Brothers should not have gone bankrupt," said Mark Williams, professor of finance and economics at Boston University. AIG, perhaps the most controversial of bailouts, has received over $170 billion in government funds so far.
According to the AP, AIG has reported to the Treasury Department late last month that "its collapse could batter credit markets, bankrupt the U.S. insurance industry, depress the dollar, increase U.S. borrowing costs and shatter consumer and business confidence everywhere."
While the viability of the AIG bailout is still in question, the $200 billion the government has spent on bailing out banks may be showing some returns. Bank of America, Citigroup and JPMorgan Chase all say they were profitable for the first time in a long time in January and February of this year. This news was the beginning of the Wall Street rally that has been seen recently.
So how does all this impact the average American? Despite having a 36 percent ownership stake in Citigroup, taxpayers aren't likely to be paid actual dividends. However, troubled financial institutions don't make loans. Credit is a necessary component of the American economy, and everyone from farmers to college students has felt the pinch from the tightening credit crisis over the last year. Bailing out the banks allows them to continue making loans on cars, homes and businesses.
Speaking of car loans, what about the bailouts given to the big automakers? Together General Motors Corp. and Chrysler LLC have received bailout funds to the tune of $17 billion and they are asking for billions more. That doesn't include the money the financing components of these two companies have also received.
The auto industry says that without the government funds millions of jobs would be lost and the result of that would "suck $400 billion out of the economy in three years." Chances are those estimates are a bit high, but there is no doubt that the bailout is just helping the automakers, but also impacts a whole slew of related businesses.
The bailouts certainly have critics, including former Federal Deposit Insurance Corp. chairman Bill Seidman. He is a proponent, among others, of nationalizing the big banks, cleaning up their balance sheets and then selling back into the private sector. "It is surely tempting to say the hell with them all," White House economic adviser Lawrence Summers said in a speech last month. But, he added, "You can't responsibly govern out of anger."
Escapeso Realty caters to future buyers of Austin real estate. They maintain a map based search of Austin homes for sale. Their site provides statistics on Austin real estate along with a free mortgage widget.
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Apr. 9, 2009 - Don't Overlook Downspouts and Gutters
When the rain starts to fall, the downspouts are there to whisk away the threat of leaks and damage to your home. They provide a fundamental service to your home that can minimize the risk of damage to basements, crawl spaces and even foundation shifts. Faulty gutter and drainage systems can also damage your roof and erode your landscaping. By regularly maintaining and inspecting your gutters, however, you can minimize the risks of damage.
The best place to start is with a simple cleaning to make sure your gutters and downspouts are operating properly. It is a good idea to have your gutters cleaned near the end of each spring and fall, when debris such as limbs and leaves are at their heaviest amounts. Obviously, the extent and frequency of cleaning can be adjusted based upon the proximity of large trees to your home and property.
While cleaning them out yourself is a viable option, hiring a professional can help in making sure the gutters and spouts and completely clear and operating smoothly. The cost of having gutters cleaned professional varies based upon the size of your home, ease of access to the roof and number of trees nearby. Periodic checks are also an important element of routine maintenance, such as tightening the screws that attach gutters to your home. You may also find that your downspouts can get periodically clogged, which can be remedied by running a garden hose down the length of the spout to clear the obstruction. As a general rule, if you can keep the entrance holes of the downspouts free of ice and debris, they will function extremely well.
No matter how well you maintain your gutters and downspouts the day will eventually come when they need to be replaced. The investment is worth it when you consider the consequences of a faulty system. As an added advantage, installing new gutters can also enhance the appearance of your home. Homeowners often try to install the gutters themselves, but a professional typically handles this project the best. If the gutters are not installed properly, it can lead to overflow back into the overhang and cause serious damage to your home. Hiring a professional may also allow you to take advantage of seamless gutter offerings, which minimize leaks that can drip down onto your landscape and foundation. Instead of hanging ten foot sections of guttering on your home, a seamless gutter is produced by a machine in a solid piece up to 100 feet long.
In addition, while popular opinion regarding their performance may vary, a variety of gutter covers are available to keep leaves and other debris from falling into your gutters. While some gutter covers do not prevent all debris from getting into the gutters, they do prevent larger debris and leaves from making their way into the gutters.
Ki's lives, and works, in Austin, Texas. His website focuses on Austin real estate. It includes a search of Austin MLS listings and has information and statistics on Davenport Ranch Austin Texas.
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Apr. 9, 2009 - Mortgage Rates Rise After Hitting All Time Lows
Last week mortgage rates hit all time lows with the 30 year mortgage rate reaching 4.78. This week the 30 year rates moved up a little to 4.87. While this is a decent one week rise we are looking at rates that are probably still in the bottom 10 for all time lowest rates. The only other viable mortgage rate, the 15 year fixed mortgage, rose to 4.54 to 4.52. Rates for the 5 and 1 year arm both rose this week. But both mortgage products are seeing very little use these days (as has been the case for several months) because they are near or above the rate for the 30 year fixed mortgage. I have seen a few cases where on certain properties banks will only offer arm's but besides these cases rates for 5 and 1 year arm's are dead. Below are rates for the last several weeks.
Apr 09, 2009
30-yr 4.87 15-yr 4.54 5-yr ARM 4.93 1-yr ARM 4.83
Apr 02, 2009
30-yr 4.78 15-yr 4.52 5-yr ARM 4.92 1-yr ARM 4.75
Mar 26, 2009
30-yr 4.85 15-yr 4.58 5-yr ARM 4.96 1-yr ARM 4.85
Mar 19, 2009
30-yr 4.98 15-yr 4.61 5-yr ARM 4.98 1-yr ARM 4.91
Mar 12, 2009
30-yr 5.03 15-yr 4.64 5-yr ARM 4.99 1-yr ARM 4.80
As we can see mortgage rates fell for the last several weeks before rising last week. In addition to rates we also like to look at actual mortgage payments. We took today's rates and translated them into a monthly payment on a 200k mortgage. We also look at payments based on rates from a week ago, when they hit all time lows, and rates from October 16th.
Apr 09
30-yr 1057.8
15-yr 1534.07
5-yr ARM 1065.1
1-yr ARM 1052.96
Apr 02
30-yr 1046.91
15-yr 1532.03
5-yr ARM 1063.88
1-yr ARM 1043.29
Oct 16
30-yr $1258.87
15-yr $1702.87
5-yr ARM $1217.16
1-yr ARM $1093.28
So while rates went up this week, they are still substantially lower than they were a few months ago. Compared to October 16th one's payment would be 19% less. This illustrates the importance of mortgage rates in the home buying equation. While people frequently concentrate on what prices are doing falling mortgage rates can often play a larger role on mortgage payments over short periods of time. While prices have fallen since October in most markets they have not fallen 19%.
So what do we expect to happen with mortgage rates over the next month? In the next few months mortgage rates could fall below 4.5 if 1) the economy doesn't recover and b) the government continues intervening to push mortgage rates down. But once the economy recovers the general expectation is that rates could rise rapidly. So far a weak economy has kept inflation in check. Once the economy recovers rates could rise to above 10 percent like we saw in the 80's.
Ki blogs regularly about mortgage rates. His site also has information on Austin Tx real estate along with a free mortgage calculator widget.
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Apr. 5, 2009 - Conflicting Economic Numbers
The stock market rally has many economists hopeful that the end of the recession is near, but the recent unemployment numbers may have dashed those hopes. According to Associated Press reports, the nation's unemployment rate jumped to 8.5 percent in March, the highest in 26 years. "It's an ugly report and April is going to be equally as bad," predicted Mark Zandi, chief economist at Moody's Economy.com.
The number of unemployed people climbed to 13.2 million in March and that doesn't include the number of people who are now working part-time due to having their hours cut. Economists predict that these trends in job loss and hours cut will continue for the rest of the year.
This seventeen-month long recession is the longest since World War II.
Some recent positive economic activity had given many hope that the end of this recession was in sight. U.S. factory orders rose in February, ending a six straight months of declines. Plus there were better-than-expected reports on construction spending and pending home sales. Last week a report showed that consumer spending, an extremely important economic indicator, also rose in February and January. The brightest sign of all is the stock market, with the Dow industrials over 8000 for the first time in a couple of months.
"Everyone is in a buying mood," said Eric Ross, director of research at brokerage Canaccord Adams. "Everyone is feeling good. ... A lot of this is simply confidence."
Yet, the layoffs continue. It doesn't look like everyone is in a hiring mood. Some economists say this is not a bad sign as jobs are one of the last sectors of the economy to recover. However, other analysts say that the economy won't recover until job losses stabilize. Construction, retail and factory jobs are cut at the rate of 100,000s per month and the unemployment rate is predicted to hit 10 percent before the end of 2009. According to the AP, economists say the job market may not get back to the normal 5 percent unemployment rate until 2013.
Fortunately, the news continues to be better in Texas, which actually had a drop in jobless claims. Companies like Valence Technologies Inc. are waiting to see what will happen with the stimulus money while making plans to build a $760 million battery manufacturing plant in Central Texas. According to the Austin-American Statesman, the Austin company has applied for a low-interest government loan from a program designed to encourage the development of next-generation autmobiles.
President Obama's stimulus package continues to offer a bright spot on the horizon for many hoping to take advantage of the $787 billion available for public works programs and other initiatives in the areas of energy and education. The package will also help ease some of the burden of unemployment claims on local governments, although Texas has signaled that it may refuse to accept money for temporary programs.
In other government efforts to help the ailing economy, the Federal Reserve has cut a key interest rate to nearly zero in an effort to jump-start lending, as well as other initiatives to inject billions of dollars into the financial system. Is the end near? It depends if the good news can continue to outpace the bad in this on going battle of conflicting economic numbers.
Ki has worked with Austin real estate for almost 10 years. He has sold to a variety of buyers. His site offers listings directly from Austin MLS along with a a mortgage widget.
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Apr. 5, 2009 - Ways to Save Money on Your Grocery Bill
It is getting harder and harder to makes ends meet these days, especially with our economy in the state that it is in. Families are cutting their spending in as many places as they can whether it is planning a less expensive vacation, not going on vacation or just simply cutting back on everything.
One of the things that seem to be hitting family's pocket book is their grocery bill. Groceries have become expensive. Farmers have had to raise prices on their goods because of the price to raise and harvest, or the drought has made it hard for farmers to grow their crops, whatever the reason, the consumers are feeling the impact at the check out stand.
There are ways to save money when you buy groceries. Here are a few tips on how to save when it is time for that weekly shopping trip.
* Clip coupons. Manufactures place coupons in the paper weekly. Take the time to go through and clip out everything you or someone in your family uses.
* There are many online coupons. You can either print and cut out the coupons, or buy online and use the coupon immediately. If you buy groceries online, not only do you avoid the grocery store, you also save gas since the groceries to delivered right to your door.
* Shop at discount stores. Places like The Dollar Store, Dollar General and other discount stores have groceries. They are usually much cheaper than brand name stores and many carry name brand items.
* Try buying in bulk. It makes sense to buy in bulk if you are shopping for a large family. Places like Sam's or Costco are great places to buy in bulk. Even if you don't have a large family, you can buy in bulk and store the unused items until they are needed. Just make sure you pay attention to the expiration dates and use them before they expire.
* Many families buy bulk with other families. If you do have a small family, but have close friends who want to buy bulk, get together and split the cost.
* Don't buy items you don't need. You are just wasting money in the long run.
* Don't buy groceries when you are hungry. Everything looks good and you will buy more or buy things you don't need.
* HEB grocery store has "Free Meal Deals." You have to buy one item and you can get several other items free. For example, you have to buy a pack of hot dogs. You can get a package of buns, mustard, relish and a bag of chips free. The store usually has several "Free Meal Deals" at once. You just have to look for them and get what is on the coupon. Your family can save a lot of money this way.
There are many other ways of saving money when buying groceries. Many stores will run sales each week. Try to pick up a store flyer and catch their sales they are offering.
When Ki isn't biking in the hill country, he provides Austin real estate services. He has an extensive website, which allows buyers to search Austin MLS along with mortgage calculator widget. He has been involved with the Austin real estate market for over a decade.
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Apr. 5, 2009 - Go Green in Your Lawn this Summer
Summer is the perfect time to combine your green thumb with a green lifestyle. We've all heard about going green at work and at home, but did you know that you can go green in your yard too?
Home owners can save time, money and improve the appearance and the health of their lawn and garden.
Here are a few tips to help you get your yard and garden on the way to being green. Mow your yard regularly and leave the clippings on the ground. The cut grass will recycle into free fertilizer.
Water you lawn deeply but not too often. If you water too often, your lawn can develop lawn disease. Watering occasionally also helps save water.
Identify bugs and pests before you spray. Not knowing what you are spraying can cause harm to beneficial bugs.
Consider planting native plants and trees in your yard and garden. Look for plants and trees that have fruit and berries. These will attract butterflies and birds into your yard. One good choice of trees is Mountain Laurel. It is native to Texas and is very fragrant. The blooms are purple and attract humming birds and butterflies.
Another native plant is Lantana. It comes in many different colors and is also a fragrant plant. It is hardy in Texas and can withstand hot dry temperatures.
Mulch your flower and vegetable gardens. This helps protect the roots and helps hold water so you don't need to water as often.
Home owners can also install or collect rain water. This will enable you to recycle rain you have collected. It can be used to water flowers and garden vegetables.
Try using natural or organic fertilizers in your yard. They do not do any damage to surrounding plants and if organic or natural fertilizers run off, they will not cause harm to drinking water or to animals.
Some natural fertilizers and weed suppressants that can be used are things like corn gluten. This is usually put down in early spring and helps prevent weeds from taking control of your lawn. Many homeowners and gardeners have problems with grubs, a type of worm that turns into a June bug. They can easily be controlled with beneficial nematodes, which are micro-organisms in the soil. These natural products can be found very easily in garden centers all over town. You can also buy these products online.
If your family enjoys being outdoors, mosquitos, ticks and fleas can put a damper on any type of outdoor activities. A natural way to get rid of these pests is by using citronella candles or Tiki torches. You can find many natural insect repellents to put into the torches.
Starting a compost pile is a good way to go green in your lawn. Instead of throwing away lawn clippings and food, such as potato peels, egg shells and such, you can start a compost pile.
There are many ways to green your lawn. You not only will have a beautiful yard, but a healthy one too.
Ki has sold Austin real estate for almost 10 years. He works with a variety of buyers. His website offers listings directly from Austin MLS along with a blog covering Austin Texas real estate.
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Apr. 5, 2009 - Mortgage Rates Hit New All Time Lows
Mortgage Rates were already at all time lows last week. This week they fell further. The 30 year rate fell from 4.85 to 4.78. The 15 year rate fell as well going from 4.58 to 4.52. The difference between the 30 year fixed and the 15 year fixed is the smallest it has been in some time. Since the difference is not that great the 15 year mortgage is not seeing that much activity.
Both the 5 year arm and the 1 year arm fell as well. Since they are both above or close to the current rates for a 30 year mortgage they are pretty much pointless and seeing very little activity to no activity in the current market. Below are rates for the last 5 weeks.
Apr 02, 2009
30-yr 4.78 15-yr 4.52 5-yr ARM 4.92 1-yr ARM 4.75
Mar 26, 2009
30-yr 4.85 15-yr 4.58 5-yr ARM 4.96 1-yr ARM 4.85
Mar 19, 2009
30-yr 4.98 15-yr 4.61 5-yr ARM 4.98 1-yr ARM 4.91
Mar 12, 2009
30-yr 5.03 15-yr 4.64 5-yr ARM 4.99 1-yr ARM 4.80
Mar 05, 2009
30-yr 5.15 15-yr 4.72 5-yr ARM 5.08 1-yr ARM 4.86
Over the last month the 30 year rate has fallen from 5.15 to 4.78. In addition to rates we always like to look at mortgage payments. We determined the mortgage payment for a 200k loan for today's rates and the rates from March 26th and March 5th.
Apr 02
30-yr 1046.91
15-yr 1532.03
5-yr ARM 1063.88
1-yr ARM 1043.29
Mar 26
30-yr 1055.38
15-yr 1538.17
5-yr ARM 1068.75
1-yr ARM 1055.38
Mar 05
30-yr 1092.05
15-yr 1552.56
5-yr ARM 1083.44
1-yr ARM 1056.59
In the last month we can see that a mortgage payment for a 30 year has come down 4.3 percent. Which is pretty substantial considering that mortgage payments a month ago were already near 40 year lows.
While mortgage rates are pretty low banks are still pretty skittish. What does that mean? Banks are willing to offer very low rates to individuals that want to buy a house to live in and have a high credit score. Rates are higher for duplexes, people with low credit scores, and non owner occupy loans. Banks are pretty stringent on appraisals. Real estate deals are falling apart at the last moment over appraisal issues. Banks are also avoiding fixer upper properties. So we have some of the lowest interest rates and some of the strictest lending restrictions. In summary mortgage rates are at all time lows if you can get them.
Ki writes regular articles about mortgage rates. His site has a search of Austin Texas real estate along with a tool that graphs historical mortgage interest rates.
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A general blog about real estate with random tips and observations.
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