Fast Internet in SLO???
Would you like to see 100 Mbps+ broadband service in San Luis Obispo? If you missed today’s rally at Mission Plaza in downtown SLO, you still have time to go to the Google Fiber for Communities site and nominate SLO as a beta test site: www.google.com/appserve/fiberrfi/public/options. Google is planning to build and test ultra high speed broadband networks in a small number of trial locations across the United States. It will deliver internet speeds of more than 100 times faster than what most Americans have access to today with 1 gigabit per second, fiber-to-the-home connections. That is fast! I believe this will help attract more people and new businesses to San Luis Obispo and ultimately be good for our real estate market. Let’s show the world that great things can happen in San Google Obispo!
Mary Anne Lodato
San Luis Obispo Realtor
(805)235-3795
Lic #01718125
Price Change Report Not Working
The Price Change and Dropped Listing reports aren’t working right now and I’ve contacted the programmer. I’ll blog when they are healthy again.
Rate Update and Broker Misconceptions
Treasury auctions contained very few surprises, and economic data was light, leaving mortgage rates nearly unchanged last week. The big question remains, what will happen to mortgage rates when the Fed’s mortgage-backed security (MBS) purchase program ends March 31st? The MBS program is unprecedented, making the outcome difficult to predict. Some argue that any rate increases would be modest as the Fed has been gradually reducing the size of purchases, and has telegraphed the end of the program for months. The argument for higher rates rests largely on basic supply and demand. The added demand resulting from the Fed’s intervention pushed mortgage rates lower, and a decrease in demand will naturally lead rates higher. Currently, the 30-Year Fixed sits at 4.625% (4.804% APR) and the 15-Year Fixed is at 4.000% (4.307% APR). The Fed will meet next week, with no change expected for the fed funds rate. The most significant economic data will be the monthly inflation reports. The Producer Price Index focuses on the change in the price of “intermediate” goods used by companies to produce finished products. The Consumer Price Index looks at the price change for those finished goods which are sold to consumers.
Here are some common misconceptions about brokers…
Brokers don’t have to be licensed. This is simply wrong. Mortgage brokers in California are governed by the California Department of Real Estate, and are required to obtain a real estate license, as well as complete periodic education courses to maintain their licenses. Under the new SAFE Act mortgage licensing system, all mortgage brokers must register with the Nationwide Mortgage Licensing System, and complete additional testing as required by the newly formed California Department of Financial Institutions. By comparison, federal and state chartered banks are not subject to state licensing requirements and therefore do not need to have their loan officers licensed.
Brokers have no decision-making power. This is also wrong. Brokers are armed with the same tools as the banks in terms of underwriting and qualifying a borrower for a home loan, on the spot. Brokers have access to the same automated underwriting systems that most banks do. This allows brokers to obtain the same instant approvals in-house without needing to ship the file to the bank.
Brokers are financially unstable. Banks love to portray all mortgage brokers as fly-by-night operations that don’t have the capitalization or stability to be a direct lender. This can be true in some cases. However, there a many brokers that are well established, have long track records of success, are well capitalized and have made the choice to stay a broker.
Brokers are a rip-off. Consumers are conditioned to believe that eliminating the middle-man always yields the best deal. Successful marketing efforts by Costco and other discount wholesalers have led consumers to loathe paying mark-ups and dealing with middle-men. In the mortgage arena, brokers are the discount wholesaler. Brokers actually receive wholesale rates that are below the market that banks offer because they are responsible for their own overhead. A well-managed mortgage broker will be able to pass these discounted rates on to you, the consumer.
Central Coast Lending, Inc.
(805) 543-LOAN
info@centralcoastlending.com
805.543.LOAN info@centralcoastlending.com
MORRO BAY UPDATE
-The Harbor Dredging is completed! The piping is now off of the beach and the last of the equipment has been removed.
-Upgrades to the Del Mar Dog Park have been completed. This park offers an “Off Leash” Area.
-Looks like the Morro Bay Library is going to be expanding its reading and children’s areas. When the Libray was built in the mid 80′s, Morro Bay did not have its Community Center so some of the library was used as a meeting space for community groups. Since the city is now renewing the Library’s lease- it seems the time to address this change.
-The City Council is looking into writing an Ordinance to allow a Medical Marijuana Dispensary. Morro Bay previously did have one, and to my knowledge, it worked out well- until the Federal Government shut it down.
- Coming Soon: The Morro Bay Rock to Cayucos Pier Run will be held
April 17!
LYNN BATES, Keith Byrd Team, North Coast Realtor of San Luis Obispo County including Morro Bay, Cayucos, Cambria and Los Osos. 805 458-4409. Lynn@LynnBates.Com
World’s First Motel to be Auctioned
The Motel Inn in San Luis Obispo, the very first motel in the world, is planned to be auctioned off due to a default on the loan. Actually, it’s not the motel that will be sold but the lot as the motel was torn down years ago.
How to Stop a Toyota Prius
Having a 2007 and 2009 Toyota Prius, the recent story about the guy in San Diego with a stuck accelerator has made me think. Now there seems to be some controversy about the guy who reported this and some are saying it’s a “bubble boy” type incident.
Here’s a video on a guy who shows how easy it is to stop a Prius
Lose an Hour of Sleep This Sunday
It’s that time of year again when we move the clocks FORWARD an hour on Sunday at 2 AM (late Saturday night).
Light, Bright and Airy Home Staging Tips
Happy Tuesday! Today I am going to share about the importance of properly preparing your house for sale in a tough market! I had the honor of staging a home recently, that sold in 3 hours! That’s right… 3 hours! Of course not every home is going to do that, but in this market its impressive when houses sell in 3 weeks! Here is what we focused on to make it look great!
- Neutralizing past occupant’s style choices, like bright wallpaper, and choosing warm neutral paint tones instead.
- Updating simple items like drawer pulls and faucet handles , seems small but can make all the difference.
- Properly arranging furniture so that rooms maximize living space and show off the view.
- Utilizing all the natural light possible, and lighting dark areas.
- Giving every room a unique purpose. People don’t need 3 kids play rooms, showcase one as a formal dining room, or an exercise room, etc.
Happy Home Selling! It can be done in this market, but you need to pay attention to the details, if you want to sell quicker and for a good price in this market. – Shannon
If you have more questions or would like to contact me directly please email me at: shannon@LightBrightandAiry.com or visit my website: www.LightBrightandAiry.com
Rate Update and HARP Extension
Generally weaker than expected economic data resulted in slight improvement in mortgage rates this week. January Pending Home Sales fell 7.6%, far below the forecasts for a small increase. The expected surge in sales from the extended and expanded homebuyer tax credit has yet to materialize so far. This decline adds to evidence the housing market is struggling to rebound after reports released the week prior showed large decreases in New and Existing Home Sales. The National Association of Realtors suggests that we may still see a pick-up in sales as buyers rush to take advantage of the tax credit before the April 30th deadline. The Fed’s Beige Book report showed the economy plodded along with slow growth, but remains hampered by soft labor markets and a weak commercial sector. The employment report proved to be the lone bright spot last week as less jobs were lost than expected and the Unemployment Rate remained unchanged from January at 9.7%. Currently, the 30-Year Fixed sits at 4.625% (4.804% APR) and the 15-Year Fixed is at 4.000% (4.307% APR). Do not expect much change this week as Retail Sales and $74 billion in Treasury auctions highlight an otherwise light economic calendar.
The Federal Housing Finance Agency, overseer of Fannie and Freddie, announced the Home Affordable Refinance Program (HARP) will be extended to June 30, 2011. HARP is part of the Making Home Affordable Program, and is designed to expand access to refinancing for otherwise qualified borrowers who cannot obtain more affordable mortgages because of a lack of equity in their homes. This means that Fannie’s Refi Plus program and Freddie’s Relief Refi program, originally set to expire on June 30th, will be extended for one more year. In case you forgot, the Making Home Affordable Program was made possible by $75 billion in stimulus funds aimed at helping 9 million homeowners avoid foreclosure. This refinance initiative allows underwater homeowners to refinance up to 125% of their home’s value with no monthly mortgage insurance. Borrowers are also allowed to re-subordinate existing 2nd liens and equity lines. No cash out is allowed on this program, and lender closing costs are limited to ensure maximum benefit for the homeowner. Some clients may also qualify for more relaxed documentation requirements. Contact your mortgage professional to see if you qualify.
Central Coast Lending, Inc.
(805) 543-LOAN
info@centralcoastlending.com
Study Says Zillow’s Price Estimates are Overvalued
A study by an Appraiser organization says that 80% of the houses they sampled in Zillow were at least overvalued by 1%, with the average overestimation of 11.66%.
