Mortgage Rate News

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Right now, it’s all about the deals on the housing market. There are a number of incentives, not to mention the great deals on home prices as the market continues to look for a bottom. And, if you are willing to buy a fixer-upper, you can really make a killer of deal. In fact, many people prefer to buy fixer-uppers and put in a little sweat equity. However, it is important to be careful when purchasing that fixer-upper. You want to be sure about what you’re getting into. Real Estate Pro Articles offers this insight into buying a fixer-upper:

Homes that need work do cost less, but they cost less for good reason. Sometimes they’re not reduced as much as they should be, considering how much work they require. Don’t buy any fixer upper without having a thorough inspection done so that you know exactly where you stand. Be aware that some problems may not come to light until after you start fixing things up.

When we were looking for a home a couple of years ago, my husband and I considered a fixer-upper. However, we lack the necessary skills and knowledge to effectively fix up a house. By the time we hired people to do the work, we found that we might as well just buy a home that didn’t the upgrades. And, while my husband could probably have learned how to do some of the work, the fact is that he is a Ph.D. student with very little time. In the end, between our two schedules, it was impractical to try a fixer-upper. Others, though, are talented builders and can fix up homes for a relatively small cost.

Before you take the plunge with a fixer-upper, make sure that you understand what you are getting into. Get a realistic view of the costs involved, as well as the labor. You want to make sure it is truly worth it before you buy a fixer-upper.

If you are trying to sell your home, you know that it is most definitely a buyer’s market. Plus, there is a good chance that your home will be on the market for months before you manage to sell. This means that you may need to take drastic action in order to sell your home quickly. CNN Money offers these 5 things you can do to speed up the home selling process:

1. Lower your price. You have to realize that, in this market, competition is fierce. You may have accept less than your asking price. Be prepared to come down if you want to sell quickly.
2. Spruce up the exterior. One of the best things you can do is make the outside look a little bit nicer. You don’t have to do anything major, though. Power washing, a little TLC for the yard and some new paint for the door can go a long way. You need to improve the curb appeal so that buyers can see that your home is a better choice than the foreclosure on the next block.
3. Concentrate on first-time homebuyers. With all of the incentives, first-time homebuyers are the largest segment. Market your home so that it seem more attractive to this audience.
4. Online keywords. You can sell your home faster if online searchers can find it. Think about what makes your home great, and highlight that with keywords like “granite counters”, “new appliances”, “deck” and “pool.” Include pictures, and make sure your home is priced at the low end of the range.
5. Offer a speedy deal. Be prepared to move fast to offer “freebies” like paying closing costs or homeowner’s association fees. Offer a carpet allowance or new appliances. You have to be able to show what a good bargain it is.

In the end, selling your home fast is about accommodating the seller. If you don’t think you can do that, you might try waiting to sell your home. Because right now, there are plenty of options for buyers, and they can afford to be picky.

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One of the questions that has some concerned has little to do with mortgage fraud. It has to do with the way mortgages have sometimes been handed out. The New York attorney general’s office, back in 2005 (when Eliot Spitzer was a.g.) launched an investigation into whether or not mortgage lenders were discriminating. At issue was whether minorities were forced to get mortgages with higher interest rates than white borrowers. The probe looks at discrimination by race, alleging that some borrowers were treated as “risky” due to their race, rather than due to other factors such as income and credit score.

As expected, mortgage lenders sued. The Office of the Comptroller of the Currency also sued, saying that such a probe was outside state jurisdiction. The case has risen through the ranks, reaching the Supreme Court. And the justices have handed down their ruling, allowing New York to proceed — within certain limitations. CNN Money reports on the Supreme Court verdict:

The justices overturned part of a ruling by a U.S. appeals court that entirely blocked the state office from investigating or enforcing the fair lending laws against national banks because they are subject instead to federal regulation.

In the court’s main split opinion, Justice Antonin Scalia concluded the state attorney general cannot issue subpoenas, but can bring judicial enforcement actions.

The move does not give the state of New York a complete victory, but it does provide some leeway. New York received support from every other state in the union, many of which are concerned about regulation and consumer protection. Even real estate agents supported New York in its action. The federal government was against New York, however, stating that federal regulators should be in charge of enforcement. However, the track record for enforcing the Fair Lending Act has not been that great. Perhaps allowing such a probe to go forward will increase fairer mortgage practices.