On the Monday after the Fed effectively took over Fannie Mae and Freddie Mac, interest rates plunged down by over 1/2 %. Absolutely crazy drop! But yesterday and today, credit lending between banks froze for a number of reasons and the overnight dollar LIBOR (London Interbank Offered Rate) rate screamed up. It soared 3.33 percentage points to 6.44 percent – about doubled.

Some mortgage adjustable loans are tied to the LIBOR, and there’s concern for homeowners with that type of mortgage. But 30 year fixed rates also went up by almost 1/2% yesterday as well. Hopefully, this is just a crazy market time, cooler heads will prevail, the dust will settle, and rates will settle down.

Many home buyers from the 2003 – 2005 era are now “upside down” in their mortgages (ie, they owe more than their home is worth), especially if they had little or no equity in their home when they bought. The substantial drop in home values, with the possibility of re-setting mortgages and the inability to re-finance have created a no-win situation for many.

What to do? Fannie Mae may give some guidance on your decision making. Read the rest of this article »

California has great first time homebuyer financing programs for first time homebuyers (defined as not having owned a home in the previous 3 years). But there’s also a little known California financing program for disabled buyers (or if they have a family member with disabilities living with them) and it’s got a super interest rate – 4% fixed rate for 30 years!

The loan is for 95% of the purchase price, plus there are additional “silent second” loans available to help with closing costs.

Do you know anyone that might benefit from this program? Have them give Leslie a call for more info!

I (Leslie) was showing property to a client last weekend, but when I tried to close and lock the front door, the outside door knob loosened and I heard a loud crash inside – the door knob fell off! What do you do when the door knob just falls off?

Fortunately, there was a dead bolt which I locked, and I tried calling the Realtor but his mailbox was full!

Just another day in the life of a Realtor!

Probably forgotten in all the media saturation of real estate issues recently is the $7,500 tax credit Congress passed and President Bush signed (the Housing and Economic Recovery Act of 2008) for first time home buyers (haven’t owned a home in previous 3 years). Read the rest of this article »