To refinance, or not to refinance

With the incredibly low interest rates of recent months, many homeowners are wondering when exactly is the best time to refinance. Is it now? Well, three economists weigh in on a CS Monitor story and have created a calculator that takes a lot of factors under consideration, including your income tax rate and number of years you plan to remain in the home.

For more information or to use the refi calculator, go to CSMonitor.com.

Boston real estate borrowers have an advantage

Boston ranks in the 10 cities that Forbes ranks as the best for real estate borrowers:
1. Kansas City, Mo.
2. Houston
3. Dallas
4. Virginia Beach, Va.
5. San Antonio, Texas
6. Boston
7. Pittsburgh
8. Denver
9. Seattle
10. Portland, Ore.

To read more about Boston’s real estate ranking in this list, go to Forbes.com.

For more information on Boston real estate sales, go to Gibson Sotheby's International Realty, Boston's real estate experts.

From Boston real estate to the National Picture

(SAN DIEGO, CA) -- Within two weeks of Congress passing an extension and expansion of the home buyer tax credit program through mid-2010, the feeling of renewed optimism and energy was in the air at the annual National Association of Realtors convention in San Diego this past weekend.

At a scheduled press conference, NAR introduced Vicki Cox-Golder as their new incoming President for 2010.

Ms. Golder stated in her press conference that her goals in 2010 primarily included, "Providing more liquidity to the real estate marketplace, get kinks out of the appraisal process, reduce restrictions on lending and further encourage our Realtors to really know their local markets."

NAR's senior economist Lawrence Yun also held a separate press conference and released some telling numbers and market predictions for 2010 that included; sales activity continuing to rise by as much as 15% in 2010, the reduction in inventory to just a 6-7 month national supply, and housing prices stabilizing and even showing a modest 3% to 5% appreciation by the end of 2010.

But Yun did admit that there are some issues that remain in 2010 that include increased foreclosures through mid-2010 and continued rising unemployment.

He further commented, "The fear factor that many consumers had in 2009 when it came to buying a home will be replaced by rational decision making and market data in 2010".

Other real estate market predictions made by Lawrence Yun for 2010 included;


* Estimated that over 2.2M families will take advantage of the home buyer tax credit program.

* 5.7M annualized sales rate of existing home sales, up from 5M in 2009.

* 550,000 new home sales, up from 400,000 in 2009.

* Over 3M homes in foreclosure in 2010 and an additional 3M homes in foreclosure in 2011.

* More international buyers enter the market in 2010 due to favorable exchange rates against the US dollar.


When asked, "what keeps you up at night for 2010", Yun replied "Inflation". "When inflation goes up, so does interest rates!"

Find the complete article on http://www.realestatechannel.com

Spotlight on Boston real estate: Monetizing the First-Time Homebuyer Tax Credit in Massachusetts

An article in Banker and Tradesman discussed the exciting news that a program in Massachusetts will allow qualified buyers to use the First-Time Homebuyer Tax Credit as a downpayment:

Patrick, MassHousing Monetize First-Time Homebuyer Credit
By Ian B. Murphy - Banker & Tradesman Staff Writer
July 14, 2009
Gov. Deval Patrick has announced a loan program through MassHousing allowing first-time homebuyers to monetize and use an $8,000 federal tax credit as a funding source toward the closing costs of their new home. The principal and interest payments for the loan will be deferred until June 1, 2010, to allow first-time homebuyers to pay back MassHousing with their federal tax credit. If loans aren't paid by the June deadline, they will be amortized for 10 years at the rate of their original mortgage. Gary Rogers, president of the Massachusetts Association of Realtors (MAR), said not paying back the loan with money saved from the tax credit is still a decent option. "If that's what the homebuyer opts to do, that's still an excellent program; usually second mortgages have much higher rates," Rogers told Banker & Tradesman.

The loans will be available only to homebuyers with MassHousing mortgages, through MassHousing-approved lenders. To be eligible, loan participants must use the home purchased through the program as their primary residence for at least three years, and must purchase a one, two, three or four-family home from a seller unrelated to the buyer by Nov. 30. "These loans will both help prospective homebuyers achieve the comfort and stability of homeownership for their families, and also stimulate the commonwealth's economy through increased home sales, while reviving neighborhoods impacted by foreclosure," Patrick said in a statement.

This is the first program of its type in Massachusetts, according to Rogers, but there have been other variations of the same theme in other states. MAR worked with Patrick, Lt. Gov. Timothy Murray, and MassHousing to bring the program to fruition. "It's a partnership; we're right there with them, and we'll be making sure that our Realtors inform the people who this is aimed for, and that they know about the program," Rogers said. "The Tax Credit Loan will be of great benefit to homebuyers, Realtors and MassHousing-approved lenders, and we applaud the Patrick-Murray administration for its leadership in promoting affordable homeownership opportunities in Massachusetts," said MassHousing Executive Director Thomas R. Gleason.

For more information on the Boston real estate market, go to Gibson Sotheby's International Realty, Boston's real estate experts.

Spotlight on Boston real estate: Mass Foreclosures Drop 58.6% in May

An article on boston.com explored data from this May that showed a tremendous drop in foreclosures for the state of Massachusetts. The study by the Warren Group show the drop in comparison to the same month last year. There was also a 24.3% drop from last month (April 2009). Timothy M. Warren Jr., Warren Group’s chief executive, called the new data “encouraging.’’

To read the complete article, go to boston.com.

For more information on the Boston real estate market, go to Gibson Sotheby's International Realty, Boston's real estate experts.

Spotlight on Boston real estate: Jumbo Mortgages on the Rise

An article on Boston Business Journal’s website investigated a rise in what they are calling “mega-mortgages” - those over $1 million. The jumbo loan market appears to have been doing well, despite the more strict financing guidelines of late. The Journal sited the Boston-based wealth management division of the Bank of New York Mellon as a firm who is leading the charge. The firm tends to deal with the wealthiest 1%.

To read the complete article, go to BizJournals.com.

For more information on the Boston real estate market, go to Gibson Sotheby's International Realty, Boston's real estate experts.

Spotlight on Boston real estate: Tax Credit Used for Down Payment?

A recent article on WashingtonPost.com looked at a new use of the First-Time Homebuyer Tax Credit: a down payment. Yes – it looks like qualified buyers with FHA-insured loans will be able to use the $8,000 tax credit as a down payment. This may make it a little easier for interested buyers to get financing. In fact, officers at the National Association of Home Builders estimate that the number of sales stimulated by the credit may double!

To read the complete article, go to WashingtonPost.com.

For more information on the Boston real estate market, go to Gibson Sotheby's International Realty, Boston's real estate experts.

Spotlight on Boston real estate: The State of the Market

Joe Wolvek of Gibson Sotheby’s International Realty has released another State of the Market report for Boston’s neighborhoods. The bottom line is that Under Agreements are up. Why? Well, Wolvek sites a few reasons, including low interest rates, the $8000 first-time homebuyer tax credit and a recent slight boost in consumer confidence.

To find read more of Joe Wolvek’s State of the Market report, go to bostonrealtyweb.com.

For more information on the Boston real estate market, go to Gibson Sotheby's International Realty, Boston's real estate experts.

Real Estate Update: Mortgage agents are very busy following Obama plan

Reuters.com reported that mortgage agents are working hard to keep up with the recent spike in demand for refinancing and new mortgages. All of this is purportedly due to the $275 billion housing plan from President Obama.

Read the full article on Reuters.com.

For more information on the Boston real estate market, go to Gibson Sotheby's International Realty, Boston's real estate experts.

Real Estate Update: Obama to launch plan for mortgage relief

A recent article on Reuters.com detailed a soon-to-be-unveiled plan by the president to lower mortgage costs. This would be part of a stimulus package to address burdened homeowners and those seeking new mortgages.

Read the full article on reuters.com.

For more information on the Boston real estate market, go to Gibson Sotheby's International Realty, Boston's real estate experts.

Boston Real Estate Update: Local banks move into the mortgage biz

A recent article on Boston.com detailed an interesting change in the mortgage market. Many nationwide companies who offer mortgages have been hard hit by defaults and tightening restrictions. In some cases, the local banks were not hit nearly as hard and are now able to offer more beneficial loans. So, if you are in the market for a new home, try stopping by your local bank to see what they can do for you.

Read the full article on boston.com.

For more information on the Boston real estate market, go to Gibson Sotheby's International Realty, Boston's real estate experts.

Boston sees mortgage restrictions loosen for some

John Ranco, Sales Director of Gibson Sotheby’s International Realty and President Elect of the Greater Boston Real Estate Board, has made mortgages a key topic in recent sales meetings for his team of 160 sales agents.

“In this challenging market, it is critical for our agents to be knowledgeable about the most up-to-date mortgage guidelines. We’ve invited several firms to talk with us. And, we are excited about some of the opportunities that are on the horizon,” says Ranco.

One key to these opportunities is an influx of cash from the federal government, aimed at filling voids in the real estate financing market. Joe Smith from Countrywide Mortgage said that companies like his may be able to offer much needed financing to future new developments. Currently large new development projects are faced with tougher guidelines and restrictive pre-sale requirements. Smith says that Countrywide (soon to be Bank of America) may be able to improve on the federal guidelines for developers in Boston. This is good news for real estate buyers and the local construction industry.

In addition, Countrywide is able to offer loans to homebuyers with only 3.5% down, in some cases. This is contrary to the recent news reports that indicate an industry-wide halt on attractive mortgages. Smith says that there are still a lot of really great products out there and many with 4-5% interest rates.

For more information on the Boston real estate market, go to Gibson Sotheby's International Realty, Boston's real estate experts.

House values are under scrutiny

If you are looking to sell your home or to buy a new one, you might be surprised at the increasing scrutiny that lenders are putting on home values. An article in the San Francisco Gate says that many banks are often demanding more thorough appraisals to be sure that their investment in your home (the money lent for a mortgage) is a safe investment.

Read the rest of this article on sfgate.com.

For more information on the Boston real estate market, go to Gibson Sotheby's International Realty, Boston's real estate experts.

Mortgage interest rates, the rate spread and what it all means

One thing that tends to confuse home-buyers is mortgage interest rates. While the Fed (Federal Reserve Bank) can change the short-term interest rate, fixed rate mortgages are actually based on the “long bond” or 10-year Treasury bond.

Recently, there has been an unusual difference between the long bond and the fixed rate mortgages. Why, you ask? Well, the lending institutions are sort of hedging their bets. To protect their interests during this challenging time, many are essentially increasing the cost of mortgages. For more information, read this helpful article on usatoday.com or this one on CNNmoney.com.

For more information on the Boston real estate market, go to Gibson Sotheby's International Realty, Boston's real estate experts.

Bargain hunting for homes in Massachusetts

A Boston.com article studied the rise in single family home sales in October. Lower prices have brought out the bargain-hunters. According to the Warren Group, this echoes the trend in the 1990’s that led to the end of the housing slide. Read the full article on Boston.com.

For more information on the Boston real estate market, go to Gibson Sotheby's International Realty, Boston's real estate experts.

Real estate agents offer guidance in challenging times

A recent Seattle Times article indicates that real estate agents have to be experts in the rapidly changing housing market. With all of the major adjustments in mortgage programs, foreclosures and market conditions, clients are in need of experienced consultation to make informed decisions. Read the full article here at the Seattle Times site.

For more information on the Boston real estate market, go to Gibson Sotheby's International Realty, Boston's real estate experts.

Prepping your credit for a future purchase

A recent article on MarketWatch.com offers tips on preparing your credit score for next year’s real estate purchase, including:

- Check your credit report. Find out if there have been changes to your account limits, and make sure there aren't any errors. Look for any negatives on your report -- many negative items should be removed after seven or ten years.

- Don't get close to card limits. About 30% of your FICO is based on the ratio of the amount that is owed on active cards to your available credit. But utilization on individual cards is important too; getting close to the limit on one card will also reflect negatively on your score. Pay down balances as much as possible.

- Keep accounts active. Accounts get closed when there hasn't been activity on them for a while. Make small purchases on cards a couple of times a year -- then pay them off right away -- to keep accounts active and your available credit up.

- Pay bills on time. This should an easy one, but could prove challenging for people who could lose their jobs in the months ahead. Be proactive, and contact the credit-card company as soon as possible if you're having problems paying your bill. Payment history counts for about 35% of your credit score.

- Don't apply for new cards. Store cards are tempting when they offer discounts at the register, but don't bite. Applying for that card will have a negative effect on your score in the short term.

Read the full article on MarketWatch.com.

For more information on the Boston real estate market, go to Gibson Sotheby's International Realty, Boston's real estate experts.