Remax Imperial's Blog

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• First you need to know that homeownership is an investment in your future.Owning a home helps build wealth over the long term, and it provides significant social benefits.

• On average, owner who purchased their homes six year ago have seen the value of their home rise 24.3 percent during that time, despite recent price declines...

• In a recent survey of economists, 8 out of 10 believed home prices will be higher in 5 years that they are today!

• First time home buyers can now get a $7,500 tax credit for qualified homes purchases from april 9, 2008 to june 30, 2009, thanks to recently passed housing stimulus legislation.

• An overwhelming majority of economics surveyed - by a better that 5 - to - 1 ratio - agreed with the statement, "A person can increase they long-term wealth by purchasing a house rather than renting."

•  Any questions give us a call at Remax Imperial 516-355-9000, and we will show you all the opportunities in todays market

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after this week of crisis in the stock market and AIG being helped by the UNITED STATES government,

we need to understand that the MI companies, or mortgages insurances companies are in big trouble because the are the first one that put the money when a house defaults, and we all know that there are plenty of real estate foreclosure in todays market.

IF YOU ARE PUTTING 20 % OR LESS I would stronlgy recomend to go with and FHA LOAN THAN A REGULAR CONVENTIONAL LOAN because you don't have to deal with a private mortgage insurance company , you have to deal with federal insurance MIP , (mortgage insurane premium)

FHA is much better, you can put 3 % down ,

FHA is much better, you can purchase a home for a loan amount of $729,000 in NEW YORK.

ANY questions, please don't hesitate to visit REMAX IMPERIAL

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1% CASH BACK TO ALL OUR BUYERS

Many people believe that when the Federal Reserve lowers their Fed Funds Rate .5%, that the 30 year mortgage rate will be .5% lower as well.  For instance, before the fed came out and lowered the Fed Funds rate this week, a client of mine locked his rate on a 30 year mortgage at 6%. The news comes out about the Fed lowering their rate a .5% and he immediately calls me to see if we can cancel that lock request because he wants to get 5.5% instead.
 
The truth is that although the Fed lowering the Fed Funds rate always makes the headlines, everyone in the business should know that any direct correlation between overnight rates and 30-yr mortgage rates is very little (especially in the last two business days) Eventually, yes, they tend to move in the same direction, but not right now. Check out this chart of the Federal Funds vs. Prime Rate&Mortgage rates.
 
 
 
The Stock Market has been falling off a click but mortgage rates haven't gone lower..why?
As you may or may not know, when the stock market goes lower, mortgage rates usually get better. That's because as investors sell their stock, they usually put that money into a safe place and the safest place perceived by many investors is in the U.S. treasury market. As the demand for the U.S. treasuries goes up, the yield that the government has to pay on those bonds goes lower and since the yields on 10-year and 30-year Treasury securities are typically used to set long-term mortgage rates, we see mortgage rates go lower as well.

Well as you've probably noted, the stock market has been falling of a cliff lately and mortgage rates have actually gone up! In the past 5 days, the Dow has dropped from approx 10,500 to as low as 8000. This would lead you to believe that all of the money from selling stocks would be invested in Treasury securities and that the yield on the 10 year treasury would go lower. Instead, in the same 5 day period, the yield went from as low as 3.4% to 3.9% which is a HUGE jump in such a short period of time.
 
Unfortunately, it seems that the traditional flight to quality that we are used to seeing has disappeared and it appears that investors are parking money on the sidelines until the markets stabilize.
 
for more information please visit best realty ny

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Many people believe that when the Federal Reserve lowers their Fed Funds Rate .5%, that the 30 year mortgage rate will be .5% lower as well.  For instance, before the fed came out and lowered the Fed Funds rate this week, a client of mine locked his rate on a 30 year mortgage at 6%. The news comes out about the Fed lowering their rate a .5% and he immediately calls me to see if we can cancel that lock request because he wants to get 5.5% instead.
 
The truth is that although the Fed lowering the Fed Funds rate always makes the headlines, everyone in the business should know that any direct correlation between overnight rates and 30-yr mortgage rates is very little (especially in the last two business days) Eventually, yes, they tend to move in the same direction, but not right now. Check out this chart of the Federal Funds vs. Prime Rate & Mortgage rates.
 
 
 
The Stock Market has been falling off a click but mortgage rates haven't gone lower..why?
As you may or may not know, when the stock market goes lower, mortgage rates usually get better. That's because as investors sell their stock, they usually put that money into a safe place and the safest place perceived by many investors is in the U.S. treasury market. As the demand for the U.S. treasuries goes up, the yield that the government has to pay on those bonds goes lower and since the yields on 10-year and 30-year Treasury securities are typically used to set long-term mortgage rates, we see mortgage rates go lower as well.

Well as you've probably noted, the stock market has been falling of a cliff lately and mortgage rates have actually gone up! In the past 5 days, the Dow has dropped from approx 10,500 to as low as 8000. This would lead you to believe that all of the money from selling stocks would be invested in Treasury securities and that the yield on the 10 year treasury would go lower. Instead, in the same 5 day period, the yield went from as low as 3.4% to 3.9% which is a HUGE jump in such a short period of time.
 
Unfortunately, it seems that the traditional flight to quality that we are used to seeing has disappeared and it appears that investors are parking money on the sidelines until the markets stabilize.

Fabio Fornaro
Mortgage Banker
516-353-5501

1% cash Back to all our buyers

Everbody know that there is no appreciation in real estate at the moment, there is only depreciation.

Every state is different how much real estate prices have droped in the past year o year and half.

In New York , Long Island , where we are from, there are places that have drop 20% or more , as well where there has being basically no appreciation in some areas.

On Every market wether the market is going up or down , we can make money as real estate professional , we need to be pro-active, we need to work harder, we need to work smarter in order to adapt and to succeed in our real estate market today.

what is HOT today in real estate?

1. REO, (BANK OWNED PROPERTIES)
2. SHORTSALE

If you have a brand Mercedes SL500 and you want to sell it at full market value , you will never sell in today's economic crisis.BUT, if you put it for sale at a good discount price you will sell it in less than week.

We at RE/MAX IMPERIAL are an REO broker for the Long island, queens, brooklyn area. We are having right now an easier time to sell our REO properties right now than a year ago , and the reason being is because the lenders  know that in order from them to get rid of their bad debt in their books, they need put it at right price to sell faster, because they need to free up their cash in order from them to stay in business.

If you any questions regarding reo in the new york , queens, long island reo , please don't hesitate visit us at www.bestrealtyny.com 

SO , if you are real estate that doesn't have any reo, don't worry , what you need to do is to find out who is your local area expert, meet with him , and let him know that you would like to try to sell his properties, even tough all of the properties are in MLS , the reo broker will remember you because you are doing something different, YOU ARE MEETING WITH HIM FACE TO FACE and not via fax, or email .
and who know,s he might be able to give you the heads up on futures REO's that will be available in future before anyone else .

2.SHORTSALES

For the judicial states where foreclosures take place, shortsale is the best way to save money to the bank as well to the real estate professionals (Realtor).

On the bank or lenders point of view they don't have to wait one year or more just to able to get to the  auction date where 90% of the time that you go an real estate auction in Nassau, Queens or Brooklyn the bank has to take the property back because the LTV (loan to value) is so high that no real estate investor will buy it.( foreclosure attorney)

After that bank gets the property back at the auction , they have to do an eviction procedure(more attorneys) , and this could take 6 month or more!!!

and we are not done yet!!!!!!

the bank after they do the eviction, they have to do the clean up!!!!

And finally is ready to sell with the expertise of an  REO BROKER!!!

NOW, IS TIME TO DO THE MATH

EXAMPLE:   
INTEREST RATE:                                                                               7.5%

ORIGINAL MORTGAGE AMOUNT :                                                      $400,000.00
2 YEARS FOR THE BANK TO GET THE PROPERTY BACK                         $  67,200.00
Foreclosure Atty                                                                             $    8,000.00
Eviction  + Clean up to be ready to sell(nyc)8 months mortgage pmt   $  22,400.00
Eviction Atty + Clean up cost                                                            $  6,400.00
3 year of real estate taxes                                                              $  18,000.00
3 year of Force Home Owner Insurance                                              $ 12,,000.00

TOTAL COST for the before it goes an Experience REO BROKER             $134,000.00

400,000.00- 134,000.00                                          $266,000.00

ASSUMING THAT THE BANK SELLS IT AT $400,000.00 , BUT We know that is not true.

WE ARE NOT DONE YET!!!!!!!!!!

now let's talk about Depreciation : 0.5 % per month  
 36 months (assuming that the original value was 400k)              $  64,365.00

$266,000.00 -64,365.00 =   $201,635.00

49% LOST TO THE BANK.

OR  TO DO A SHORT SALE

U BE THE JUDGE!!!!!!

if you have any questions, please don't hesitate to visit us,

New york best real estate company

ARE THE BANKS LENDING MONEY TODAY TO GET A MORTGAGE?

Every day, a new story seems to come out about how our financial system is on the brink of destruction and we are seeing bank after bank either closing down or being taken over.
 
Yes, these are frightening facts that do paint a very bleak picture but most, if not all of it, has to do with the easy credit lending standards that we had over the past few years. The truth of the matter is that those 100% No Income Check Loans are a thing of the past BUT right now, banks are willing to lend on loans that make sense. FHA, in  my opinion is the best mortgage to get these days and since FHA loans are insured by the government, lenders are willing to fund these loans with full faith and security.
 
YES,YOU CAN get a mortgage today, contrary to what you may hear. Mortgage rates are still at very low levels and my assumption is that they will only get lower.
 
The main problem we are having within the financial industry now is that Banks are not lending to banks and Corporate credit lines are being restricted or drying up all together. These are the problems that the bail out is dealing with. If businesses do not have credit lines they will not survive. American business runs on credit. Therefore, liquidity and faith in the banking system needs to be restored.

Last month Uncle Sam took over Fannie and Freddie and FHA is raising there loan limits. This was good news for the mortgage market since a major source of residential money is now secure. The FDIC has done a wonderful job of curing the failing banks and quickly shifting the nations deposits to stronger institutions with no more than a hic-up. The sky did not fall, and it probably will not fall.
 
Real Estate has always been a great long term investment. The economy has always had its ups and downs and Real Estate has always rebounded.
So, don't worry. There is money to lend, and at reasonable rates with very good terms.

don't forget, real estate rebate with RE/MAX IMPERIAL,

1% CASH BACK TO ALL OUR BUYERS

Any questions, please don't hesitate to www.bestrealtyny.com for mor information