Sunday, April 29, 2012

Owning a rental in Colorado these days can be profitable


The vacancy rate for apartments in a sample of Colorado cities has continued to drop, driven by the fact that more people are renting and few new apartments are being built. A new report from the Colorado Division of Housing notes that the recent vacancy rate is the lowest since the first quarter of 2001, when the rate was 4.3 percent.

"Three years ago, there was a craze that everyone should own their own home," said Gordon Von Stroh, a University of Denver business professor and the report's author. "We are past that. We are a lot more realistic now."

Von Stroh said wages haven't gone up and that the customary down payment on the purchase price of a home is 20 percent, a significant increase from two years ago. He said many can't afford the down payment.

"The American family is strapped," Von Stroh said. "Costs are going up. To buy a new home today is a significant chunk of money."

This report, though defined by the Division of Housing as "statewide," is based on a handful of Colorado cities. Ryan McMaken, Colorado Division of Housing spokesman, said that although there were small increases in vacancy rates in a few places, the state is moving toward fewer vacancies.

"The Denver area and northern Colorado have some of the tightest markets right now, and not surprisingly, in those areas we're also seeing some of the most sustained growth in rent in recent quarters," McMaken said. 

The average rent in Colorado increased 2 percent from the second quarter of 2010 to the second quarter of 2011, rising from $862 to $877. Von Stroh said there haven't been significant rent increases in the past decade. With demand for rentals going up — some apartment communities report vacancy rates of 2 percent to 3 percent — owners of these investment properties are making a profit by hiking rents.

If you would like to speak with an industry expert about your ability to secure financing for a purchase, refinance or simply to see if you would qualify to do so, please contact Glenn Dooley or one of our many licensed mortgage professions at MAC5 Mortgage.  Glenn can be reached at gdooley@mac5m.com or at 720-407-6338.  You can also inquire for more information on our contact us page and/or fill out an online application.  By doing so, you will be able to receive an no cost, no obligation review of your credit profile and we will be happy to demonstrate our team's ability to earn your business.

Friday, April 27, 2012

Reasons buying a Home now makes sense



If you’ve been waiting to buy a house for the right time, the next few months may be the best time to buy. Waiting for both housing prices and interest rates to fall may not be a good strategy for potential homebuyers since analysts don’t expect any more significant declines in these two most important home-buying factors. Here are several reasons you should get into the housing market sooner than later.

The Lowest Housing Prices in Years
Nobody knows when the housing market will hit complete bottom, but prices are at their lowest in several years and may soon start inching back up again. So buying now or in the near future may be the right time. An abundance of bargain-priced housing is now available because of the recent foreclosures and falling prices.

Interest Rates are expected to Go Up
As the economic recovery gains momentum, interest rates are expected to increase, making mortgages more expensive. Even a half-percent increase in mortgage interest can add a hundred dollars or more to your monthly payments, depending on the amount of your loan.

Low Down Payment Mortgages Available
Low-down-payment financing through FHA-insured mortgages is available as an additional inducement to buy a house now. Down payment minimum requirements also fluctuate and may increase as the market heats up, so potential buyers with less cash to consummate a deal may be well-advised to buy now.

If you would like to speak with an industry expert about your ability to secure financing for a purchase, refinance or simply to see if you would qualify to do so, please contact Glenn Dooley or one of our many licensed mortgage professions at MAC5 Mortgage.  Glenn can be reached at gdooley@mac5m.com or at 720-407-6338.  You can also inquire for more information on our contact us page and/or fill out an online application.  By doing so, you will be able to receive an no cost, no obligation review of your credit profile and we will be happy to demonstrate our team's ability to earn your business.

Thursday, April 26, 2012

How HARP 2.0 can help - giving you the chance to refinance when in trouble.


 

For homeowners who want to refinance but owe more on their mortgages than their homes are worth, the wait may now be over. Borrowers can now find a wide range of lenders offering refinances through HARP 2.0, a program that allows borrowers to refinance regardless of how deeply underwater they are. In some of the places that were hit hardest by the housing downturn, these homeowners have been waiting to refinance under this updated program for months, as it is their only chance to refinance at a lower rate.

HARP 2.0, a revamped version of the Home Affordable Refinance Program, was announced months ago. Until now, only a limited number of borrowers had access to it. Although a few national lenders have started to offer HARP 2.0 refinances to their own customers this year, most lenders were waiting for Fannie Mae and Freddie Mac to update their automated underwriting systems with the program's new rules. These updates were completed as of March 17, 2012.

Now, borrowers be able to get a HARP 2.0 refinance from their mortgage provider.

Who is eligible for a HARP 2.0 refinance?

To qualify for a HARP 2.0 refinance, you must meet these requirements:
    • Your mortgage must have been sold to Fannie Mae or Freddie Mac before June 1, 2009.
    • You must be current on the mortgage and have no late payments in the last six months. A late payment is defined as one that's more than 30 days overdue.
    • You must not have more than one late payment in the past 12 months.
    • This must be your first refinance through HARP. If you have refinanced under an earlier version of HARP, then you do not qualify.

If you would like to speak with an industry expert about your ability to secure financing for a purchase, refinance or simply to see if you would qualify to do so, please contact Glenn Dooley or one of our many licensed mortgage professions at MAC5 Mortgage.  Glenn can be reached at gdooley@mac5m.com or at 720-407-6338.  You can also inquire for more information on our contact us page and/or fill out an online application.  By doing so, you will be able to receive an no cost, no obligation review of your credit profile and we will be happy to demonstrate our team's ability to earn your business.