Monday, April 30, 2012

Partner With Me for a Journey to an Amazing Future!

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You’ve seen the successes of many hardworking individuals in real estate that make the commitment to live out their dreams and change their lives for the better. Well now, it’s YOUR turn to make the same commitment to your OWN life. On Thursday May 3, we invite you to come join us for Career Night – what could quite possibly become the first day of the rest of your successful life! You won’t regret it. Please click here to register.

Tuesday, September 13, 2011

Why is it important to have rate quote when you take out a mortgage loan?

It is very important to get a mortgage rate quote particularly when you are buying a home. Getting a proper mortgage rate quote is essential since this will help you understand how much you can afford to pay on your mortgage loans. When you are thinking mortgage how much can I borrow, you should check out the mortgage rate quote so that you can afford to take out the most suitable mortgage loan. Go through this article to know why it is important to have a mortgage rate quote when you plan to take out a mortgage loan.

Locking in a Rate – It is best to lock an interest rate when you know the lender you want to apply for taking out a mortgage loan. Once you lock in a rate, you need to do the necessary paperwork for your loan and also find out your mortgage rate. The mortgage interest rate may change in the market but once you lock your interest rate, you know it for sure about the mortgage rate. After locking your rate, you can shop around to purchase your dream house. The lock-in rates are available for thirty, sixty and ninety days. It is your lender who will tell you for how long you your interest rate will be locked and what will happen in case you cannot repay the loan amount within the end of the lock period. Keep this in mind that if you cannot repay the loan amount, your rate of interest will be changed. Thus, locking in a rate can be said as a good choice if you want know how much you can afford to spend and the lender whom you want to choose for taking out a mortgage loan. It will also help you understand “mortgage how much can I borrow” so that you can take out the most suitable mortgage loan.

Online or in person Mortgage – You may get a mortgage rate quote either online or through any lending institution. You will have to provide the personal information to get the mortgage quote. When you provide social security number, bank information, tax returns and employment history, the person who will figure out your interest rate will have a clear idea of your creditworthiness. The interest rate that you may receive from this quote would be the rate that you will get from the lender. In case you have chosen for online quote but you want to change to traditional loan, it is obvious that you may not get the same interest rate. You should also keep in mind that if the interest rate changes between the time of your quote and the time you take out the loan, your mortgage rate will also change.

The mortgage calculators that you can get in the Internet helps you have a rough idea of the loan amount you can afford to take out and the interest rate that you are expected to pay on your loan amount. For doing the necessary calculations, you are required to provide your income, debt and the time period for which you want to take out the loan. Many lenders may ask about your creditworthiness but it is quiet common that you will not have the answer. So, it is necessary that you think what loan amount you can afford to repay before you take out a mortgage loan.

Tuesday, September 6, 2011

Why Buying Now Holds the Secret to Years of Lasting Happiness in Your Life

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Almost anyone can buy a home – and these days, most everyone wants to, given the historically low mortgage rates and the very low home prices.  But buying in a way that proves successful on a long-term basis, however, is what differentiates those who end up with lasting happiness and prosperity throughout their life from those who just own a big house.  Since doing anything for the right reasons is a far better approach, it’s a valuable lesson to understand what your motivation should be for buying a home.  In this article, we outline the difference between buying for the sake of having material possession versus buying to enjoy life and provide for your family.

Whether you are a first-time homebuyer considering a new home, someone who has suffered a short sale but are ready to rebuild and become a homeowner again, or an investor – this message applies to you.

Why Buy Now?

Click on this link to see how interest rates have fared during the last several months, few years, a decade and longer.  The further back you go, the more astounding today’s rates seem.  For many of us in the real estate industry the current rates that hover around the 3s and 4s (percentage points) are unprecedented!

The Secret to Lasting Home Buying Success

But here is the big secret to lasting health, happiness and yes, even wealth:  if you buy your home for the right reason, you will be able to live happier in it.  Buying your home based on whether or not you can afford the monthly payments is a big mistake.  Buying your home with the intent to be able to pay it off as soon as possible so that you can live free of a mortgage payment – THAT is success!  Imagine what you can do with all that extra cash each and every month.  You can treat your family on vacations, buy a new car every few years, pay for the kids’ college and live guilt-free as you build your wealth while at the same time living happily, in a paid-off home.

Can Anyone Buy a Home Using This Principal?

Yes!  As long as you buy a home that is within the realm of your capability to manage it, then you can buy a house.  I do not suggest investing in a property that is bigger than you need or better than you need, just so that you can keep up with the Joneses.  By choosing a property that you can realistically pay off within 20 years instead of the 30-year term that you will most likely get for your mortgage, you are doing yourself and your family a huge favor.  This is a concept that nationally syndicated radio talk show host and financial expert Dave Ramsey highly advocates.  In a bad economy or even worse economic conditions than today’s, the Joneses would find themselves looking at a short sale or foreclosure while you and your family would count on securely living in a mostly or fully paid off home.

Why Is This Principal So Spectacular?

As simple and rudimentary as it is, buying a home and going into debt within your means is a concept that is becoming more and more obsolete.  Where here we are talking about choosing a home that is reasonable and not overboard, most people believe that buying a home based solely on the monthly payment amount and the seeming affordability of that payment, without regard for anything but how big the house is.  Though very basic and nothing new, the simple idea that one should buy within their means with the full intent to pay off the mortgage as soon as possible is one that will open up many new doors in the future.

The Single Best Way to Shorten Your Loan Term

Even if you do not earn a very large paycheck, the key to paying off your mortgage sooner and to shave off years (not to mention tens of thousands of dollars) from the term is to chip away in small increments, month after month after month.  By making extra payments, no matter what amount you can handle, you will be tackling your principal impacting the amount you owe in a significant way.  To demonstrate just how significant the time and monetary savings are by doing this, input your estimated or existing mortgage payment information into this calculator that factors extra payments and shows the entire repayment schedule.
You cannot afford to miss this opportunity to free yourself and your family from what could be years of mortgage captivity if you get locked into future, much higher rates or worse – unable to secure a mortgage on a home.  For more information or a customized consultation, visit your Realtor.

Thursday, August 18, 2011

Six Reasons You Want to Buy and Own Your Home Rather Than Lease It

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Just like road travelers equate travel time in minutes versus miles when in actuality it can take a lot more time depending on travel conditions, the comparison of buying your own home versus leasing is not always the same on either side of the equation. A lot of people are misguided about the benefits or lack thereof of living in a home that is leased. In this article we discuss six important reasons why buying your home makes much more sense than renting it from someone else.

Same Monthly Payment, But You Will Get More House

Square foot for square foot, chances are you will find a better home, with more space, more amenities, additional features and in better condition if you buy rather than lease. Typically a house you would rent that would cost you the same out of pocket to own would be smaller, usually more rundown and often located in an area that may not be acquiescent to your lifestyle. Not only are you gaining the advantage of building equity into a home whose mortgage you are paying off but it is far more safe and comfortable. The freedom to make your own choices like owning pets or making adjustments that you want is another benefit of owning.

Same Monthly Payment, Much Better Neighborhood

School districts that are renowned, solid neighborhoods with established reputations for safety and quality communities are an important consideration. Once again, the same monthly payment gets you a lot more bang for your buck. Especially for families, being in a better neighborhood is an essential part of living anywhere and if you can accomplish that without any additional out of pocket amount, why wouldn’t you?

Lower Total Move-In Cost

When leasing a home, most landlords will typically require the first month’s rent, the last month’s rent plus a security deposit close to the same amount. With the myriad financing options these days, homebuyers can avail the advantages of loan programs that allow you to get away with as little a 3.5% down or even $1000 to get into your home. Though this depends on your credit and income, since interest rates are so low these days, it does not hurt to engage in the option of buying a home, even if it means a slightly higher rate. The savings are still very good considering the current real estate market’s housing prices and low mortgage rates.

When You Buy A Home, You Don’t Have To Make The First Payment For A Month Or Up To Two Months Later

People who buy a home do not have to come up with their first payment until at least a month later and sometimes as much as two months later, depending on the timing of when you they close. This is completely opposite for those who are renting, where before you even move in that entire amount is due up front (for a $1400 monthly rent, the total due at signing a lease would be about $3,800).

Tax benefit

The average tax bracket for a homeowner is about 25% federal and about 9% or 10% for state. The average deduction for a home in the $200,000 price range is about $3,600 per year or roughly $300 per month. What that means is that after you get your tax break from the government your payment is actually $1,100 a month. This does not happen with renters at all and the monthly payment remains $1,400. In fact, if you move from one year to the next, there is a chance the monthly rent payment can increase even more.

More Payment Goes Toward Principal Initially

For the first couple of years of a mortgage, about $200 on average of each of your payments goes toward your principal. That increases dramatically in the upcoming years and it is an advantage that is not available to those who rent a home.
Right now is the BEST time to buy your house. Not only because renting does not make sense when you compare it to owning but also because buyers these days are enjoying the lowest interest rates they’ve seen in a while, historically low housing prices and a good amount of edge in the market.

Wednesday, August 3, 2011

June 2011 Market Report for Southern California

JUNE REPORT : Southern CA home sales last month rose more than usual from May to the highest level for any month since June 2010! Most of the volume was driven by investor sales, high end sales and even new home sales instead of the traditional move up activity in the middle price ranges. Distressed property sales accounted for just over half of the Southland resale market last month. Roughly one out of three homes resold was a foreclosure, while almost one in five was a “short sale.”

A total of 2598 new and resale houses and condos sold in San Bernardino County in the month of June. When comparing those numbers to sales in San bernardino County in June 2011 when 3179 properties sold, we can see a decline of -18.30%.  In Riverside county the change was less Drastic.  Last month there were 3,960 sales and when you compare that to sales in June of 2010 where 4,645 homes were sold we can see a decrease of  -14.70%

The Median Price in both counties also took a small dip. In June of 2010 the median sales price was $148,000 in the San Bernardino county and  $200,000 in Riverside County .  When you factor in the Median price of home sales in San Bernardino County was $160,000 and $210,000 in June of 2010, that gives you a decrease in Median sales price of -7.50% in SB and -4.80% in Riverside.

Why the dip in activity and median Price?  One of the reasons is that we saw a spike in activity last year at this time as the Obama Credit for first time homebuyers was running out at this time last year.  Home Buyers new they had to act fast in order to take advantage of the $8,000 and that frenzy drove prices and sales up quite a bit!

In the three Areas where the Danny Morel Real Estate Group does most of its volume the numbers show a bit of a confusing trend.. In Fontana, Fontana Homes sales median sales price dropped by -10.68%. It rose in Rialto where Rialto Home prices grew by 1.94 % and we saw a slight decrease in

Rancho Cucamonga Homes Prices

From $314,000 in June of 2010 compared to $300,000 in June of $2011 which gives us a decrease of -4.46%

As always the three key components of selling a home are still the most important factors in determing the salability of your Fontana,Rialto or Rancho Cucamonga homes.

In one example a client recently wanted to sell one of her Rancho Cucamonga homes at 7519 Marmande Place Rancho Cucamonga CA and we were able to get it sold in 40 days!

Our properties that are Priced to sell, in a Condition that reflects the Price and are being marketed through our 55 point Marketing Plan are selling in less than 30 days in Today’s Market!!!

Want to find out your home value? Give the Danny Morel Real Estate Group a call for an updated market analysis of your Fontana, Rialto or Rancho Cucamonga homes!