Archives for October 2011

Federal Housing Agency Announces Changes to Mortgage Refinancing Program

October 25, 2011 By EmmanuelFonte Leave a Comment

Yesterday the Federal Housing Finance Agency (FHFA), Fannie Mae, and Freddie Mac announced several changes to the Home Affordable Refinance Program (HARP), the details of which can be found here:http://www.fhfa.gov/webfiles/22721/HARP_release_102411_Final.pdf.

While the specific changes will not be released until November 15, 2011, below are some of the enhancements that were included in yesterday’s announcement:

No Loan-to-Value Limit: Under the current program borrowers are limited to a maximum mortgage of 125% of the home’s current value. By eliminating the loan-to-value limit the program will apply to more homeowners who are currently underwater on their mortgage.
Lower Loan Level Price Adjustments (”LLPA’s”) and no LLPA’s on loans with terms of 20 years or less; the end result will be a reduction in the costs of refinancing for most borrowers.
Increase in the number of loans eligible for Property Inspection Waivers. Much like the LLPA issue, the end result will be a reduction in the cost of refinancing for more borrowers.

Given that the agencies will not release the final draft of the changes until the middle of November, right now we are in a “wait and see” mode as to the ultimate impact these changes will have. However, from an initial glance the changes coming are a positive step in making the HAMP program available to more homeowners.

Filed Under: Economy, Real Estate, Real Estate Updates

Is This A Solution?

October 25, 2011 By EmmanuelFonte Leave a Comment

What do you think? Comment below…

Filed Under: Home Remodel, Real Estate

High-Tech Dining Table Rotates, Expands & Doubles in Size

October 25, 2011 By EmmanuelFonte Leave a Comment

A card table for four or six becomes a dining table for eight to twelve, all with a quick turn by hand or, if you want, via remote control – the process is nearly as gorgeous as the product.

The Capstan Table by DB Fletcher Designs uses high-quality materials making their tables durable potential heirloom pieces … or even fit for your fancy pleasure boat.

Throughout its stunning transformation, the expanding tables retain a circular shape while a 3D kaleidoscope of hidden leaves lift up and slot gently into place.

“Every component used is of the highest quality and designed to last for generations. Tables are made for domestic or harsh marine situations, the quality and method of construction allowing for external positioning on the deck of a yacht.”

Filed Under: Furniture

See Much The Homebuilder Stocks Have Rallied

October 24, 2011 By EmmanuelFonte Leave a Comment

This morning, Citigroup analyst Josh Levin pointed out that inventory of available homes for sale has been collapsing, and that the media hasn’t paid attention to this major shift in housing market dynamics.

That may be true, but the market has definitely noticed something going on.

The homebuilder stocks have been on a rocket-ride since the beginning of the quarter, with XHB (the homebduiler ETF) rallying a ridiculous 32% since its low on October 3. It hit a low of 12.21 and is now at around 16.12.

This is a monster move in one of the most hated sectors in the world, and so obviously needs to be paid attention to.

Filed Under: Economy, Real Estate

A Bedroom Closet Makeover

October 24, 2011 By EmmanuelFonte Leave a Comment

By Nicole Sforza

Armed with some practical organizing tools and a bit of ingenuity, Real Simple saves this closet from chaos.

Before: Cluttered and Inefficient

Florida mom Jennifer Hochman (pictured here with daughters Rachel, age three, and Monica, five) stashed everything from bedding to art projects in her walk-in—with no linen or coat closet, she didn’t have a choice. Real Simple burrowed in to turn the chaotic family catchall into a high-functioning haven of storage and style.

Found In (and Tossed From) Jennifer’s Closet

7 power suits (with shoulder pads) from the 80s
1 electronic coin counter
1 fake potted orchid
1 back massager
6 winter coats from her University of Michigan days
1 graduation robe
14 dry-cleaning hangers with plastic (no clothes)
1 kaleidoscope

Read the rest here.

Filed Under: Home Care Tagged With: closet organizing

Life’s a Journey, Not a Destination

October 23, 2011 By EmmanuelFonte Leave a Comment

Stairs don’t have to be a completely utilitarian installation. Sometimes, stairs can lead absolutely nowhere at all such as this sculptural staircase featured in the first picture. These stairs are definitely for a journey, not a destination. Other stairs are far more impressive to the eye than they would be practical and useful staircases. Some are so twisted and turning that a couple of imbibed wobbly pops would make them a real challenge!! The piano staircase shows that stairs can serve more than one purpose — adding a bit of music to one’s daily trek to public transportation can certainly liven things up a bit! However, my favorite, by far is the last picture with two options downwards — by stair or by slide. Most kids would kill for this staircase to the kitchen for their morning cereal.

Filed Under: Architecture Tagged With: staircase, stairs

Rising Rents Improve Investors’ Returns

October 22, 2011 By EmmanuelFonte Leave a Comment

With rents rising faster than last year, the picture for residential real estate investors is getting even better than it already was as a result of once-in-a-generation prices and low interest rates, according to the founder of a leading Internet platform for investors and real estate professionals.

Greg Rand, CEO of OwnAmerica, downplays concerns over near term price declines and urges investors to take a long view of the opportunities.

“This is a long term investment,” says Rand, who differs with what he calls the “get rich quick” approach to investing. “Rents are a steady return on your investment through the years, leaving you with an attractive asset when prices improve. And they will. The best profits in real estate accrue to long term investors who take a long term view.”

Rents are growing at a 5.17 percent annualized rate compared to a 4.72 percent at this time last year Assuming effective rent grows at the same rate in the next four months as it did in 2010, the full-year total would fall just below the historic highs of 2000 (6.18 percent) and 2005 (5.81 percent), according to a report from Axiometrics Inc., a provider of data and analysis on the apartment market.

With 1.4 million new renters this year, apartment construction can’t keep up with demand. Tenants, especially former homeowners forced from their homes because of the economy, are increasingly turning to single family homes owned by investors, especially in high foreclosure markets like Las Vegas.

During this year, investors have accounted for between 20 and 40 percent of monthly existing home sales, according to surveys of Realtors by Campbell/Inside Mortgage Finance and the National Association of Realtors. Yet, the investor market share may increase even more next year.

A survey by Realtor.com in April found that by a three to one margin, investors plan to be more active in their local markets compared to typical homebuyers in the next 24 months, and 69 percent of investors say it’ll be easier to find properties in the near future.

Most investors are newcomers. Fifty-nine percent (59%) said they’re new to real estate investing, with 33.5 percent considering their first investment purchase and 8.5 percent in the process of buying and selling their first investment property. Another 17 percent said they just completed their first transaction and plan to make more. Only 36.5 percent have experience in more than one property transaction.

Author of “Crash! Boom,” Rand argues that even in the Great Depression, owning real estate was always better than not owning real estate. Holding real estate for the long term has always been a formula for success and most family wealth has been accumulated by purchasing real estate and keeping it in the family for many generations. Real estate plus time usually equals success.

There are 6 million people who went from being owners to being renters, Rand says. “The stars are aligned to make this the best time in modern history to be a landlord,” he wrote in his book.

If you are interested in exploring investment opportunities, call me @ 206-713-3244 or email Emmanuel@EmmanuelFonte.com

Filed Under: Real Estate, Real Estate Investment Tagged With: cash flow, real estate investment, rental market, renting

Senate backs plan to help Americans buy homes

October 21, 2011 By EmmanuelFonte Leave a Comment

first-time-home-buyers-7 WASHINGTON — The Senate on Thursday backed a measure to help bolster the housing market by making it easier for people to afford a home in wealthier neighborhoods.

The Senate voted 60-38 to attach the proposal to a spending bill that the chamber will consider later this year. It would restore the size of the loans the government buys or insures to a maximum of $729,500 from the previous cap of $625,500.

The cap, known as the "conforming loan limit," determines the maximum size of loans the Federal Housing Administration and the government’s mortgage buyers, Fannie Mae and Freddie Mac, can buy or guarantee.

The higher loan limit expired at the end of September and was touted as one of the Obama administration’s short-term plans to shrink the government’s role in the mortgage market.

But with the housing sector hurting the country’s economic recovery, lawmakers and the administration are looking for solutions.

"Getting our housing market moving again is one of the most important tasks facing the country," said Robert Menendez, a Democrat from New Jersey who introduced the bill amendment.

The majority of Senators agreed that the lower loan limit was making a weak housing market even weaker. "It makes it harder for middle class homebuyers to get credit when credit is tight," Menendez said.

It is unclear what will ultimately happen to the provision, given the deep divisions within the Democratic-led Senate and Republican-controlled House of Representatives. It would have to pass both chambers before President Barack Obama, a Democrat, could sign it into law.

Republican Senator Richard Shelby said the measure would help homebuyers who "do not need federal subsidies." "This is not a good use of taxpayer dollars," he said.

Republicans in the House have been trying to quickly unwind Fannie Mae and Freddie Mac, which were seized by the government at the height of the financial crisis and now back the bulk of the mortgage market. But the administration has cautioned against removing the government’s support before the housing sector starts to stabilize.

Filed Under: Economy, Real Estate Tagged With: financing, loan limits, real estate

3D Space Dividers via 3 DIY Modular Partition Wall Systems

October 21, 2011 By EmmanuelFonte Leave a Comment

Structural walls aside, shaping space should be left to occupants – and that is the theory behind these dynamic and decorative modules that can be quickly and easily assembled, disassembled and reassembled by anyone.

Each set of pieces lends itself to particular spaces and spatial relationships – some let through light but block views, while others are intentionally permeable. Some would work well for sectioning off a home office or other space requiring privacy and professionalism.

Some are made for free-standing functions while others are essentially panelized finishes for covering an existing surface. 3-Form prefers not to prescribe (or proscribe) any particular purposes, but rather leaves it up to the user to put the puzzle together in a way that makes sense for specific needs and environmental conditions.

Filed Under: Architecture, Home Remodel