Powered by RealTown Blogs

Austin Real Estate Blog

Archives

October 2009

Oct. 24, 2009 - Options for Avoiding Foreclosure

If you are having trouble keeping up with your mortgage payments, you're not alone. If you are three months or more behind in your mortgage payments, then you are one in an estimated 3 million or more who are currently in one state or another of default.

In this situation, however, what are your options for avoiding foreclosure?

Regardless of where you are right now with your mortgage payments, the most important thing you can do is to contact your lender when you first realize you are having problems. Never ignore communication from your loan servicer.

It is to the lender's advantage to work out a solution with you if at all possible. Discuss options with your lender. Initially, most lenders will not discuss options available until you complete and submit to them a workout packet. A workout packet includes a detailed letter as to how you arrived at your situation, an income and expense statement and other information specified by your lender.

Some workable options may be a loan modification, which modifies the payment and even sometimes lowers the interest rate of your existing mortgage. The intent is to make it more affordable for you to make the payments. Typically, the result is a mortgage payment at 31 percent or below your current total household income.

In the meantime, respond to all communication from your lender. Become familiar with your rights. Read your loan agreement and find out what steps are built into your home loan regarding default.

Research your state's foreclosure laws and the relative timeframes, since laws differ from state-to-state. Information should be available online; however, you may also want to contact your State Government Housing office directly for details. The Department of Housing and Urban Development (HUD) is a great point-of-contact for information.

HUD housing counseling agents are on-hand to assist in this type of situation. You may contact one by calling 1-800-569-4287. You may also access resources in your state via the HUD website.

Once you understand the timeframes and obtain all the information you can regarding your situation, you may want to find a good bankruptcy attorney just in case your lender does not provide you with a feasible option, or does not provide you with a feasible option in time to avoid foreclosure.

In the midst of all your activity to prevent foreclosure, a primary consideration should be to modify your spending. It's amazing how much you can trim when looking at alternatives to entertainment and other purchases.

In the case of job loss or other reasons for reduced income, families often find it difficult to stop the prior cycle of spending. Even if a previous family budget was kept, it's critical to restructure the budget according to the new net income and eliminate any unnecessary spending in order to modify spending habits.

If brands were important before, ditch the brand name and opt for generic or less expensive brands. Hold off on buying clothing and accessories. If you just have to purchase such items, make sure you build a minimal amount into your monthly budget for items that can easily blend into your existing wardrobe. Look for alternative entertainment, like $1.00 video rentals at a local Redbox.

There actually could be a silver lining to this cloud in working with your family members to reduce spending. With input from all family members, you might be surprised at the savings. In addition, if you opt for a weekly eat-in family theme night, instead of that expensive dinner and movie you were used to, a greater sense of bonding might be the result. Also, ask everyone the question, "Are there assets we have that could be sold?" Again, input from all family members could result in some unexpected revenue.

Another benefit found serendipitously through a layoff is that some who have lost jobs have found other opportunities they never would have looked for had they never been laid off.

Finally, stay away from foreclosure rescue companies and schemes. You don't need to spend money that could be used toward your mortgage in trying to save it. Note that all avenues necessary to avoid foreclosure cost you nothing if you access the appropriate resources, unless you have to go into bankruptcy to save it.

Ki lives, in central Texas and works in the Austin real estate market. His website brings a free search of Austin homes for sale to future homebuyers. There is detailed information about Austin real estate along with a mortgage widget.
Comments (0) :: Post A Comment! :: Permanent Link
View more entries tagged with: , , , , , , ,

Oct. 24, 2009 - Austin Fall Festivities

The air isn't exactly crisp in Austin these days, but fall has found its way to central Texas all the same. Whether it's the University of Texas football fever or the Halloween decorations on every corner, autumn has a hold on Austin and fun festivities abound:

Oktoberfest Austin holds its first annual festival on October 24 in Waterloo Park. Bring two canned goods benefiting the Capital Area Food Bank and enjoy local bands, kids' entertainment and an arts and crafts market.

This is the 49th year for the annual "Salute to Sausage" celebrating German heritage with food and music. Wurstfest runs from October 30 to November 8 in Landa Park in New Braunfels. There are all kinds of fair-like attractions at this festival, including rides and live music.

Pumpkin Patches, or at least the kind that pick the pumpkins and bring them to the public for sale, abound in Austin. Some of them even offer far more than pumpkins. The Elgin Christmas Tree Farm offers a pumpkin patch and hay bale maze. Sweet Berry Farms in Marble Falls has a pumpkin patch, hayrides, and hayfield mazes for all ages, along with homemade ice cream and other treats.

Halloween can be celebrated all month long in Austin. Boo at the Zoo is a unique opportunity to see the zoo by flashlight on weekends in October. Wear a costume, bring a picnic and take a haunted train ride.

Spend an evening at the Austin Nature and Science Center for a Halloween Howl. See the spooky side of nature with all kinds of hands-on family fun. Check out the other Parks and Recreation events like a free haunted house and Halloween carnival.

There is the famous, or perhaps infamous, Halloween on Sixth Street with all sorts of rowdy revelers having scary fun. Shop for a costume at the famed Lucy in Disguise on South Congress before heading downtown to enjoy drink specials and live music.

The Mexican American Cultural Center celebrates Dia del los Muertes with food, music and family fun November 1. Come see the array of traditional altars honoring the dead and even create your own.

Most of the outdoor pool venues have closed for the season, but the cooler weather makes it a great time to take advantage of all the other outdoor fun Austin has to offer. Hike or bike the Barton Creek greenbelt. Walk the 100s of steps up to Mt. Bonnel and check out the view. Watch some college soccer or take in a high school football game. Stroll down South Congress Avenue or the Second Street district and see the one-of-kind shops and eateries. The fun fall festivities in the Austin area are practically endless.


Ki graduated from the University of Texas in Austin. He maintains a website with detailed information about Austin Texas real estate. The site allows future home buyers to search for homes in the Austin MLS. His blog has monthly statistics on Austin real estate.
Comments (0) :: Post A Comment! :: Permanent Link
View more entries tagged with: , , , ,

Oct. 24, 2009 - Mortgage Rates Start to Rise : Is Inflation Next

The 30 year rate rose again this week rising from 4.92 to 5.00. Now in the last two weeks 30 year mortgage rates have risen from 4.87 to 5.00. Most of the other major mortgage products rose as well. The 15 year rate rose from 4.37 to 4.43. Both the 5 year arm rising from 4.38 to 4.40 and the 1 year arm was the only product to fall moving from 4.60 to 4.54.

While this is not a huge jump the question is are we seeing the tip of the iceberg with rising rates? The expectation has been that rates would rise as the economy improves. While the economy is by no means doing well it seems to be improving from what we have seen in the last year. Additionally, the government has lowered its volume of buying mortgage backed securities. This has helped mortgage rates to rise in the last two weeks and led to speculation of further rises. Below are rates for the last few weeks.

Oct 22, 2009
30-yr 5.00 15-yr 4.43 5-yr ARM 4.40 1-yr ARM 4.54

Oct 15, 2009
30-yr 4.92 15-yr 4.37 5-yr ARM 4.38 1-yr ARM 4.60

Oct 08, 2009
30-yr 4.87 15-yr 4.33 5-yr ARM 4.35 1-yr ARM 4.53

Oct 01, 2009
30-yr 4.94 15-yr 4.36 5-yr ARM 4.42 1-yr ARM 4.49

Sep 24, 2009
30-yr 5.04 15-yr 4.46 5-yr ARM 4.51 1-yr ARM 4.52

Mar 26, 2009
30-yr 4.85 15-yr 4.58 5-yr ARM 4.96 1-yr ARM 4.85

In spite of the increases rates are still relatively low. They are lower than at any point before January 2009 and lower than they were just last month. In addition to looking at rates we also like to see mortgage payments. Using our mortgage calculator we translated rates from October 22, October 8 and March 26 into a mortgage payment for a 200k loan.

Oct 22
30-yr $1073.64
15-yr $1522.84
5-yr ARM $1001.52
1-yr ARM $1018.12

Oct 08
30-yr $1057.8
15-yr $1512.66
5-yr ARM $995.62
1-yr ARM $1016.93

Mar 26
30-yr $1055.38
15-yr $1538.17
5-yr ARM $1068.75
1-yr ARM $1055.38

As we can see again there is not a huge difference. Compared to 6 months ago a mortgage payment is only 1.73 percent higher ($18.26 more a month).

So what is going to happen moving forward? The fear of rates hitting 12 percent has probably lessoned. Basically if the economy quickly recovered the speculation was that inflation could spiral out of control. Since the economic recovery seems to be a somewhat slow process the expectation is that mortgage rates and inflation will rise but it's doubtful they will move above 10 percent.

That said if one is looking at buying its best to lock in rates now considering that rates are rising and the expectation is that they will probably be higher a month from now.


Ki has lived and worked in Austin, Texas for over 10 years. He has a comprehensive understanding of Austin Tx real estate. His site provides graphs of historical mortgage interest rates along with a free mortgage calculator.
Comments (0) :: Post A Comment! :: Permanent Link
View more entries tagged with: , , , , , , , , ,

Oct. 24, 2009 - Why Recession Recovery Will Be Slow

Austin is one of 79 metro areas across the country to be officially out of the recession, according to Moody's. Although the state of Texas is still considered to be suffering the constraints of the recession, Austin and seven other Texas cities have been given the all clear. This determination was based on an index that included employment, housing starts and home prices.

In fact, the latest poll of economist says that at least 80 percent of them agree that the recession is over. Unfortunately that piece of good news may not mean whole lot as the American economic landscape looks completely different than it did two years ago. The survey by the National Association for Business Economics released recently said to expect a slow recovery. Here are some reasons the recession recovery may be slow:

Unemployment
There seems to be little doubt that the unemployment rate, which is currently 9.8 percent, will reach 10 percent by the first part of next year. Even with the number of new jobless claims down for the fourth week in the last five, layoffs continue. Federal Reserve Chairman Ben Bernanke has warned that unemployment is likely to remain above nine percent through 2010.

Consumer Spending
Worries over unemployment affect consumer spending habits, even of those Americans who have jobs and job security. The personal saving rate is up for the first time in two decades and the cautious spending that began during the height of the recession has not changed appreciably in recent months. For example, when gas prices hit the $4 per gallon mark in the summer of 2008, people significantly changed driving habits. The annual American Community Survey showed that the numbers of Americans commuting to work, a habit stared during the high gas prices, remains the highest number in more than a decade. People are generally not eating out as much or making as many big purchases. It remains to be seen if holiday spending this season will help revive the suffering retail sector.

Real Estate
The economists surveyed expect housing in 2010 to contribute to the overall growth of the economy for the first time since 2005. However, the census data shows that less people are moving these days, with population trends to the sunbelt states actually being reversed. Real Estate prices nationwide are down and the percentage of Americans owning homes dropped to 66.6 percent this year from the high of 67.3 percent in 2006.

Credit
Even with the Dow Jones industrial going over 10,000 and banks reporting billion dollars profits, credit remains tight. A recent report from the Federal Reserve shows that households have reduced their borrowing for the seventh straight month, while at the same times banks are lowering credit limits. Banks seem to be enemy number one when it comes to this recession, yet they have to play an integral part in the recovery. Until credit for both businesses and individuals starts flowing again, employment and housing is likely to remain stagnant.


Ki lives, and works, in Austin, Texas. His site provides potential homebuyers a free search of the Austin MLS. He also provides detailed information about Austin real estate on this site along with profiles of neighborhoods like Westminster Glen in central Austin.
Comments (0) :: Post A Comment! :: Permanent Link
View more entries tagged with: , , , , , , ,

Oct. 16, 2009 - Control Home Building Costs - Here Are Some Tips & Tricks

Home building costs can often be a challenge to control when you've got so many variables in the building or remodeling project. You can avoid overages or, at least, keep them at a minimum if you are armed with some valuable advice.

When planning your build, pad your budget with a 15 percent Contingency Fund. This fund will enable you to pay for overages you have no control over, like unknowns behind walls and ceilings and problems found once excavation commences.

You may not be able to avoid all of them, but you can certainly keep overages under a certain amount of control if you consider the following tips and tricks.

Home Size, Style and Shape -

If you are building your dream home, these are three of the most significant factors that contribute to your bottom line - size, style and shape.

* As a rule, size your home in increments of two feet in order to reduce wasted material. In addition, industry experts advise that your home be built no deeper than 32 feet in order to eliminate the need for custom-made trusses. This will also reduce your expenses.

* Typically, the cost to build a multi-story home is less than building a ranch home with equivalent square footage. Multi-level homes have smaller roofs and foundations, and plumbing and ventilation are built more compact. Roofs and foundations can be quite expensive when building a ranch with equal square footage.

* The cost and need for labor and materials will increase the more corners and angles you build into the home, so you'll want to consider the shape when building your initial plan. A square or rectangular home costs less to build than homes with others shapes - e.g. L-shaped, round, octagonal, etc.

Before You Begin - Plan

* Plan your buildings costs. Take time to put your plan on paper.
* Itemize every activity you think will be involved in the project and every product you think you'll have to purchase to complete it.
* Visit home improvement stores and obtain pricing for all items you believe you'll need.
* Add all your projected expenses up and include the total in your budget.

Before You Sign - Specify

* Make sure you have an architectural plan or very specific drawing and measurements of your new build to eliminate as much gray area as possible.
* If you want specific products to be used in the build, state your requirements to the contractor and make sure that they are included in the contract for bid before signing.
* If you expect granite countertops, but only state high-end countertops, you can't expect your contractor to accommodate your request. You must be specific.
* Make sure language is included to reflect that all building permits will be obtained by your contractor.
* Make sure language is included in the contract that requires the contractor to be responsible for all costs associated with removal of demolition performed in the project.

Before Work Begins -

* If the contractor you use is reputable, he should obtain the appropriate permits with local authorities.
* Don't let the project proceed until you know that all permits have been obtained and are posted where required.

Contractor Change Orders - Beware

* This is the primary reason that projects experience overruns.
* A change order typically increases the cost of your build. If you agree to the change order and the associated expense, you are responsible to pay for it.
* If the change order is an expense incurred due to the contractor creating it, then you should not agree nor should you be held responsible for the cost - i.e., contractor accidentally tears down a wall not in the original bid or causes damage to your property while working the project.
* Be aware of your contract and the condition of your project along the way, so that you will immediately notice issues that come up for which the contractor should be responsible.
* Keep in mind that some change orders may require local officials to revisit the project to approve modifications.

Most Common Milestones for Overruns

Historically, there are two most common milestones when your building project will experience an overrun if building a new home or adding on a new room to your existing home.

Beginning of Project -

* When excavating and installing a well, if necessary, overruns are often experienced due to the terrain.
* If your contractor hits unusually rocky ground, it will take longer for him to excavate and will cost you more out-of-pocket.
* If drilling a well, it is not always known how deep it will be necessary to dig before finding water.

End of Project -

* Wrapping up the final touches to your countertops, cabinets, lighting, plumbing, flooring, electrical and other aspects to the project.
* Again, take time to shop around for all these items, price them, include them in the cost for your project, and deviate as little as possible.
* If you have excess from your Contingency Fund, you can always tap into it for extras at the end.

It's almost impossible to avert all overages in a building project; however, if you plan up front and keep your eyes open along the way, you could reduce and eliminate the most costly ones.

Ki lives and works in Austin Texas and works in Austin Texas real estate as a realtor and investor. He has a website to help buyers seamlessly perform an Austin home search online. He also writes a monthly blog covering Austin real estate with statistics and market updates.
Comments (0) :: Post A Comment! :: Permanent Link
View more entries tagged with: , , , , , , ,

Oct. 16, 2009 - Making a Dent in Mountains of Debt

One of the reasons given over and over for the slow recovery from this recession is the amount of debt so many Americans are buried under. The soaring house values of just two years ago made people feel rich and the financial future looked promising. The future look so promising, in fact, that people spent well beyond their means. It is estimated that personal debt has more than doubled in the last ten years to an average $10,000 per American household.

The crash in home values and the sudden rise in layoffs nationwide left many Americans overextended on their home equity loans and credit cards.
With no easy means to pay off their personal debt, many people are turning to credit relief companies for help. While there are many reputable companies out there offering a wide range of debt elimination services, there are even more debt relief scams. Type "debt relief" into any search engine and a plethora of companies pop up, some of which are legitimate and others who will take a clients money and leave them further in debt. The Federal Trade Commission is investigating dozens of companies who have put people further in debt in the process of "helping" them.

There are several options when it comes to getting out of debt and it is a good idea to do research and know the lingo. There is a big difference between a debt settlement and debt consolidation, for example. A debt settlement company will help a consumer make a one-time payment to clear debts, usually for less than what is actually owed. However, these companies charge a hefty fee and while credit reports will show $0 balances after a debt settlement, it will also show any delinquency history.

Debt consolidation can be done with the help of a credit counselor or pursued without the help of a debt relief service. A legitimate credit counselor will sit down with a consumer and help him craft a realistic debt elimination program, usually giving a 3-5 year window for paying down all debt. Debt consolidation is the process of paying off higher interest balances, like those of a credit card, with a lower interest loan, typically from a bank. With the difficulties consumers are facing get loans these days, it may be helpful to go through a service to help with the consolidation process.

Bankruptcy is a route taken by more and more Americans, but really no one wins in this situation: creditors don't get paid and the consumer's credit is ruined. Bankruptcy is a legal process that clears all debts without having to pay them off, but of course, there are legal fees to be considered. It should be considered the last resort alternative. The best way to start digging out from debt is to take a realistic look at spending habits and set a reasonable budget. Before turning to a debt relief service it's a very good idea to check a company's reputation with both the Federal Trade Commission and the local Better Business Bureau.


Ki enjoys living in Austin Texas for the different local restaurants and the hill country. His site is devoted to Austin real estate. It encourages future buyers to search listings on the Austin MLS. His site also has general information on the Austin real estate market along with graphs showing historical mortgage rates.
Comments (0) :: Post A Comment! :: Permanent Link
View more entries tagged with: , , , , , ,

Oct. 16, 2009 - The Great Recession Has Been a Bumpy Ride

It is hard to believe just two years ago in October the Dow Jones industrial set a record high of 14,164. According to the Associated Press, just one year after that it was at 8,451 in mid October 2008. Today the Dow is around 9,800. Stocks have rallied recently on signs that retail sales are improving. The last two years have been a bumpy ride.

The AP recently broke down the economic numbers, putting into perspective just where the U.S. economy stands today. "The panic of last fall has been replaced by the resignation that the worst is over but it might be years before the economy booms again." It seems for every gain there is something else to put in the loss column. For example, while the stock market is steadily gaining ground, the total losses in the stock market from the peak of October 2007 to the bottom of March 2009 was a mind-boggling $11.2 trillion.

A positive sign is that after steadily declining for fourteen months, retail sales increased 2.7 percent in August. But the unemployment rate in October 2008 was 6.2 percent and today it is 9.8 percent. Consumer confidence, which is measured on a scale of 1 to 100, was at a record low of 25.3 last October and this month it is 53.1. To put these numbers in perspective, two years ago consumer confidence stood at 95.2.

Some oddly positive side effects of the Great Recession have been the increase in personal savings rate from 0.5 percent in 2005, when home prices were soaring, to 6.9 percent in May 2009. Also, credit card debt held by Americans last September was a staggering $975 billion. That number is down 8 percent now to $899 billion.

To put the housing numbers in perspective, 2005 was a record year with 7 million home resales. January 2009 the annual rate of home resales was 4.5 million, but rose to 5.1 million in August. On the other hand, the median price of homes sold in 2006 was a record high $245,000. The median price of homes sold last October was $213,000 and dipped to $195,000 in August.

Some other signs of the time: Starbucks launched an instant coffee product in September. PepsiCo Inc announced recently that it will continue to offer and develop products with price in mind, feeling customers will continue to be price-conscious even after the recession ends. Retailers will need to stay creative to entice shoppers this holiday season amid rising unemployment. Wall Street may be seeing a smoother path to recovery, but it's still a bumpy ride on Main Street.


Ki works in Austin real estate. He works to help buyers find the perfect property. His website provides general information on Austin real estate. It also allows buyers to search for homes in the Austin MLS along with providing a free mortgage calculator.
Comments (0) :: Post A Comment! :: Permanent Link
View more entries tagged with: , , , , , , , ,

Oct. 16, 2009 - Mortgage Rates Start to Rise

After falling for the last 6 weeks mortgage rates started to rise this week. The 30 year rate rose from 4.87 to 4.92. The 15 year mortgage rose from 4.33 to 4.37. Both arms rose as well with the 5 year arm rising from 4.35 to 4.38 and the 1 year arm rising from 4.53 to 4.60. Below are mortgage rates for the last several weeks along with mortgage rates from March 19, 2009.

Oct 15, 2009
30-yr 4.92 15-yr 4.37 5-yr ARM 4.38 1-yr ARM 4.60

Oct 08, 2009
30-yr 4.87 15-yr 4.33 5-yr ARM 4.35 1-yr ARM 4.53

Oct 01, 2009
30-yr 4.94 15-yr 4.36 5-yr ARM 4.42 1-yr ARM 4.49

Sep 24, 2009
30-yr 5.04 15-yr 4.46 5-yr ARM 4.51 1-yr ARM 4.52

Sep 17, 2009
30-yr 5.04 15-yr 4.47 5-yr ARM 4.51 1-yr ARM 4.58

Mar 19, 2009
30-yr 4.98 15-yr 4.61 5-yr ARM 4.98 1-yr ARM 4.91

Overall its not that interesting that rates moved up. Moving up .05 points is not that significant. For the last few months the speculation has been that rates are going to eventually move up. Additionally, the federal government has been pulling back on the amount of mortgage securities it was buying (which was pushing mortgage rates down). So the question is whether this weeks rise in mortgage rates was just normal volatility or the beginning of the steady rise in mortgage rates that some have been predicting. At this point it's an impossible question to answer for the most part we will have to wait and see.

In addition to rates it's also interesting to look at mortgage payments. We took today's rates and determined the mortgage payment on a 200k loan. We also did the same thing with rates from October 1st (2 weeks ago) and March 12, 2009 (6 months ago).

Oct 15
30-yr $1063.88
15-yr $1516.73
5-yr ARM $999.16
1-yr ARM $1025.28

Oct 01
30-yr $1066.32
15-yr $1515.71
5-yr ARM $1003.88
1-yr ARM $1012.18

Mar 12
30-yr $1077.31
15-yr $1544.33
5-yr ARM $1072.42
1-yr ARM $1049.33

Overall looking at mortgage rates/mortgage payments from 2 weeks and 6 months ago we are not seeing a lot of movement. Compared to March 12 (6 months ago) a mortgage payment on a 200k loan would only be $13.42 less a month or 1.24 percent less. By comparison if rates rise to 7 percent (historically about average) a mortgage payment would be 266.72 more a month or a rise of 25%. While a rise to 7 percent seems like a lot many experts are expecting rates to move up to 9 or 10 percent.

So what is our advice for people looking for a mortgage? First it's probably best to start looking for a mortgage early on in the home buying process. It's more difficult to get a loan and waiting to the last minute is not advisable. Additionally, it's probably advisable to lock in a rate earlier instead of later. While mortgage rates could fall its doubtful they could drop by much at this point. On the other hand it's possible that mortgage rates could move up dramatically. So there is more to lose than gain by waiting to lock in on a mortgage. If mortgage rates do start to rise dramatically it could deal a serious blow to the real estate recovery we are currently seeing in several markets around the country.


Ki works in Austin real estate. His site has different mortgage widgets to keep track of mortgage rates. His site escapesomewhere.com has information on Austin along with a blog focused on Austin Texas real estate
Comments (0) :: Post A Comment! :: Permanent Link
View more entries tagged with: , , , , , , , , ,

Oct. 7, 2009 - Energy Efficiency Can Start at Home

Now that long hot summer is over, it's time to reset the thermostat. While there are still plenty of warm days ahead--one of the great things about living in Austin--we hopefully won't be breaking any heat records. Cooler weather means resetting the thermostat, which saves both energy and money.

According to the Earth Day Network, half of most household's energy costs go towards heating and cooling. "The good news is that means you have lots of room for improvement, and even small changes make dramatic improvements in household fuel efficiency." Some of the small things are cleaning vents and replacing air filters, which can save as much as ten percent of heating and cooling energy.

Setting the thermostat just two degrees higher can significantly reduce cooling bills and save energy. Buying a programmable thermostat is also a good idea. Austin Energy even has a Power Partners program, which provides a free programmable thermostat along with installation. The participants in the program agree to coordinate cycling of their air conditioner. For example, the AC would be cycled off between 3 p.m. and 7 p.m. when demand for electricity is highest. Cycling helps keep the demand for electricity level, which saves the city and the individual money.

Another surprising drain on household energy is the refrigerator, particularly if it is an older model. Austin Energy offers cash incentives for turning in old refrigerators, as much as $50, and they will properly dispose of the old one. On average, the refrigerator uses 10 to 15 percent of a household's electricity each month, even more if there is one in the garage as well. Setting the thermostat lower, cleaning the coils and making sure the refrigerator is not placed in a warm area can all help to reduce the amount of energy it uses.

The refrigerator is not the only household appliance that can help reduce energy expenses. Turning the setting down on hot water heaters and insulating the pipes can make a substantial difference in the energy used. Try running the dishwasher and clothes washer with full loads only. Using cooler water settings when possible and letting some things air-dry are also little acts with big returns.

A household energy audit is not a bad idea either. Austin Energy has qualified professionals, but a quick perusal of the web shows that there are many companies out there providing this service. The couple hundred dollars spent on the audit is very likely to be made back with the suggested home energy improvements. Austin Energy even offers free improvements to low-income customers with services like attic insulation, duct repair, caulking and solar screens. These are things that an intrepid homeowner could do on his or her own, as well. Remember, little things can make a big difference.



Ki lives in Austin Texas. He started working with Austin real estate after graduating from UT. He maintains a website where potential buyers search Austin MLS listings. His site also has detailed information on Austin real estate and the neighboring city of Pflugerville.
Comments (0) :: Post A Comment! :: Permanent Link
View more entries tagged with: , , , , , ,

Oct. 7, 2009 - World's Richest Real Estate Moguls

No matter what profession you are in, you will be impacted by real estate in some form or another. Whether you own, rent or sub-let, your life is impacted by real estate and the professionals or individuals that sell, manage or own it.

With that in mind, it would make sense that you just might be interested in people who have made it big in real estate. There are a select few in the entire world who have made their tremendous mark on the real estate landscape. Although, there were many struggles along the way, they arrived at that coveted spot of being a famous real estate tycoon.

Sarah Beeny is a developer and a host of Property Ladder, a British television program in the U.K. Beeny is a die-hard optimist and proponent for incorporating energy efficiency into building or remodeling.

Tim Blixseth is an American real estate mogul and billionaire businessman. He made a promise early on in his investment life to only collect assets, not liabilities, for the remainder of his life. He says he's stuck to that promise.

Donald Bren, according to Forbes.com, is the wealthiest real estate tycoon on the planet with a $12 billion net worth. He currently owns hundreds of office buildings, along with 90 apartment complexes.

Conrad Hilton is the founder of Hilton Hotels. Hilton was known as a tremendous philanthropist who believed charity was a basic requirement for humanity.

Stanley Ho is one of the richest people in Asia. He's a Macau and Hong Kong billionaire and casino mogul.

Lee Shau Kee is recently most famous for losing around $8 billion in net worth just in the past two years. Even with the huge losses, Kee continues to be noted as a real estate magnate as owner for Henderson Land Development. China's greater region still considers Kee as one of the area's richest people.

Ray Kroc is a entrepreneur who founded the McDonald's Corporation franchise. Kroc purchased all rights to the McDonald's name from the founding brothers Richard and Maurice McDonald. He took the franchise internationally to Japan and Germany in 1971.

Akira Mori is a famous Japanese real estate tycoon and billionaire. He's one of the richest men in the world. President and CEO of Mori Trust, his family's company owns real estate and hotels in Tokyo and all over Japan.

Minoru Mori is also a famous Japanese tycoon and billionaire. He and his brother Akira are sons to Taikichiro Mori.

Donald Trump is a famous television celebrity and billionaire real estate developer. Although his investments fluctuate with the waves of the sea, he always seems to come out on top.

Steve Wynn is a well-known Las Vegas casino and resort developer who developed some of the most opulent casinos and resorts in the City of Las Vegas.

Sam Zell's net worth exceeds $6 billion. He is ranked 68th on Forbes' list of richest Americans. He co-founded Equity Group Investments LLC that launched Equity Residential and Equity Office Properties.

Ki worked on 6th street in college. Today he has a business focused on Austin Texas real estate in the older neighborhoods of central Austin.. He also has a website, which encourages buyers to search the Austin MLS. Potential buyers can keep up with the market from afar by following his blog filled with statistics on Austin real estate.
Comments (0) :: Post A Comment! :: Permanent Link
View more entries tagged with: , , , , , , , , ,

Oct. 7, 2009 - Mortgage Rates Continue to Fall

Mortgage Rates Fell yet again this week. The 30 year fell from 5.04 to 4.94. This marks the 5th week in a row where mortgage rates have either fallen or held steady. For the most part rates have been slowly falling. In fact this week accounts for half of the total fall in the last five weeks. So how does 4.94 look in a historical context. It is the lowest rate we have seen since May 28th. More importantly though it is lower than any rate we have seen prior to March 26, 2009 in the 40 years we have been compiling reliable data on average mortgage rates.

In addition to the 30 year rate the other major mortgage products fell as well. The 15 year fixed fell from 4.46 to 4.36. The 5 and 1 year arm fell from 4.51 to 4.42 and 4.52 to 4.49 respectively. Below are rates from the last few weeks.

Oct 01, 2009
30-yr 4.94 15-yr 4.36 5-yr ARM 4.42 1-yr ARM 4.49

Sep 24, 2009
30-yr 5.04 15-yr 4.46 5-yr ARM 4.51 1-yr ARM 4.52

Sep 17, 2009
30-yr 5.04 15-yr 4.47 5-yr ARM 4.51 1-yr ARM 4.58

Sep 10, 2009
30-yr 5.07 15-yr 4.50 5-yr ARM 4.51 1-yr ARM 4.64

Sep 03, 2009
30-yr 5.08 15-yr 4.54 5-yr ARM 4.59 1-yr ARM 4.62

Mar 05, 2009
30-yr 5.15 15-yr 4.72 5-yr ARM 5.08 1-yr ARM 4.86

So why are rates falling. The fed has been buying mortgage backed securities to keep rates low. But the expectation is that interest rates cannot stay this low forever. Historically rates are abnormally low and at some point they are going to start moving back up. One thing to watch is the government's buying of mortgage backed securities. To stop inflation from getting out of control the fed needs to stop buying securities once the economy starts improving and recently the fed has started to pull back on the volume of mortgage securities they are purchasing.

In addition to rates its also helpful to look at actual mortgage payments to provide perspective. We translated today's rates into a payment on a 200k mortgage. We also did the same thing with rates from September 17th and February 26th.

Oct 01
30-yr $1066.32
15-yr $1515.71
5-yr ARM $1003.88
1-yr ARM $1012.18

Sep 17
30-yr $1078.53
15-yr $1526.92
5-yr ARM $1014.55
1-yr ARM $1022.89

Feb 26
30-yr $1082.21
15-yr $1548.44
5-yr ARM $1080.98
1-yr ARM $1050.53

Looking at the 30 year rate a mortgage payment is pretty similar to 2 weeks ago and 6 months ago. A 200k mortgage 6 months ago would have been 1.46 percent less or $15.89 less a month.

So what is going to happen moving forward. I would expect rates to stay around 5 for the time being. As long as the government continues buying mortgage backed securities we should see rates at historically low levels. Once the market starts to improve rates will start to increase. If the government is careful and avoids inflation rates should likely rise to 6-8 percent. If the government loses control of inflation we could see rates move up into the double digits.

Ki studied at UT. He hosts a website with a graphical Austin home search. His site also has a graph showing mortgage rate trends along with several mortgage widgets.
Comments (0) :: Post A Comment! :: Permanent Link
View more entries tagged with: , , , , , , , ,

Oct. 7, 2009 - A Short Guide To Federal Mortgage Home Loan Programs

In need of a loan to buy a house, make repairs on your home or buy a house and make repairs on a home? Are you thinking you might not qualify, though, so you've not started the process? You just might be surprised. The federal government currently has a variety of 18 federal mortgage assistance programs available to eligible homebuyers. Keep in mind, however, that most are for those who have very low- to middle-income and the home mortgaged must be your primary residence.

All available federal mortgage programs and are provided below. Detail for all programs may be accessed on the govloans.gov website by selecting Housing under the Loan Quick Search section. Other websites indicated also provide information about the loan programs.

* Section 203h Mortgage Insurance for Disaster Victims - If you live in a federally declared disaster area and you are a home owner or renter, contact a FHA-approved lender in order to apply or call the FHA for more information at (800) CALL-FHA (225-5342).

* Basic FHA Loan (Home Mortgage Insurance - HUD/FHA) - You may be eligible for this program only if you are a homeowner in need of refinancing an existing mortgage. Check with a FHA-approved lender to see if you qualify and visit the FHA website for more information.

* Combination Mortgage Insurance for Manufactured Home and Lot - The loan title says it all. For more information visit the govloans.gov website.

* Condominium Unit Purchase (Mortgage Insurance - HUD/FHA) - Need assistance in buying a condominium? Visit the govloans.gov website for more information.

* Home and Property Disaster Loans - This program falls under the federal Small Business Administration (SBA) and offers financial assistance to homeowners and renters in declared disaster areas. To apply, call (800) 659-2955, e-mail DisasterCustomerService@sba.gov or visit the SBA disaster assistance website.

* Hope For Homeowners - Is your home at risk of default or currently in foreclosure? If so, this program may be just what you need to save it. For more information, visit the Hope for Homeowners website.

* Indian Home Loan Guarantee Program - Targeted for low-income Native American homebuyers, you can find more information about the program on the govloan.gov website.

* Indian Home Loan Guarantee Program (Section 184) - Native Americans are provided home buying opportunities through this program. For more information and how to apply, check out the HUD website.

* Manufactured Home Loan Insurance (HUD/FHA) - Enables the purchase of a manufactured home. For program contact information visit the HUD website.

* Mortgage Insurance Purchase of a Cooperative Housing Unit - This applies if you want to purchase a townhouse or similar dwelling. See HUD website for more information.

* Property Improvement Loan Insurance (HUD/FHA) - Get a HUD insured loan through a private lender. For more a list of lenders and brochure #2651, call HUD at (800) 767-7468 or visit the HUD website for more information.

* Rehabilitation Mortgage Insurance (HUD/FHA) - You may be eligible to obtain a loan to purchase and rehab a new or existing home. For more information, visit the HUD website.

* Rural Housing Loans - To be eligible for this program, you must have very low- to modest-income. Begin the application process by visiting the USDA website under rural development.

* Rural Housing: Farm Labor Housing Loans and Grants - Applicable to housing for farm labor, get more information by visiting the USDA website under rural development.

* Rural Housing: Housing Repair Loans and Grants - Homeowners with very low-income may be eligible for this program. For more information see the USDA website under rural development.

* Section 203k Rehabilitation Mortgage Insurance - You may be eligible to obtain a loan for a home and repairs needed with this program. Visit the HUD website for more information.

* VA - Home Loans - Interest Rate Reduction Refinancing Loan - Guaranteed loans for veterans, reservists, service members and eligible unmarried surviving spouses. Contact a regional loan center for information for purchasing or refinancing a home. See the VA website for more information.

* VA - Home Loans - Specially Adapted Housing Direct Plan - This program provides supplemental financing for the previously stated VA loan; although, it is rarely used. Visit the VA website for more information.

Ki works as a realtor in the Austin real estate market. He created a website for buyers to search for Austin homes for sale. He also maintains a blog devoted to Austin Texas real estate market which has regularly posted statistical updates.
Comments (0) :: Post A Comment! :: Permanent Link
View more entries tagged with: , , , , , , ,

A general blog about real estate with random tips and observations.

Links

? Home
? View my profile
? Archives
? Email Me
? Blog Manager
? Escapeso Austin Real Estate
? Austin Real Estate Blog