Russ Boyd's Blog

Real Estate and Mortgage Market Updates and Commentary Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Veoh, Vimeo and Yahoo Video by Tube Mogul.

While sometimes it feels natural to focus on life’s challenges and difficulties, I’m grateful that the Thanksgiving Holiday is upon us.  For me, Thanksgiving is a true reminder about all that I have to be thankful for. From my family to yours I wish you all a Happy Thanksgiving.

As it turns out, I’m thankful for all the first time home buyers who, according to a report released by the National Association of Realtors®, have represented 47% of buyers this year.  This surpasses the previous high record of first time purchasers set back in 1991. This can best be illustrated in data show in these graphs just released by Zillow.com. 

The first graph is the San Francisco Metro Area and includes San Mateo, San Francisco, Alameda and Contra Costa Counties.

 

The second graph is Santa Clara Metro Area comprising Santa Clara and San Benito Counties.

It’s clear that the housing recovery for the bay area began at the beginning of 2009 and continues to progress.   It’s also clear that first time buyers are critical to housing and a general economic recovery.

Why? Because they absorb excess inventory created by the high number of financially stressed homeowners and resulting foreclosures.  The research confirms that the current high level of first time buyers compares to the recession in 1991, where the same dynamic played out as first time home buyers started the chain reaction that led the nation out of recession.   The combination of tax incentives, record high affordability, low interest rates and pent up buyer demand has led to a high level of sales which began earlier this year.  Economists would also credit the FED with suppressing any immediate rise in interest rates affecting home mortgages while the economy is still so fragile.  

The survey reflected that the median age of a first time home buyer is 30. First time buyers are being realistic about the long term nature of their investment by planning to live in their homes for at least ten years.  Nationwide, 78% of the homes purchased were single family homes.

Of all the first time buyers, 96% choose a fixed rate mortgage.  61% of first time buyers used their savings as a down payment while 22% received down payment assistance as a gift from family.  This tells us that saving for a down payment is back in vogue.

And no surprise here, a staggering 84% of first time home buyers are using the Internet to find their new home.   

Reflecting the complexities of the market, 85% of successful home sellers used a Real Estate Professional to sell their home.  The actual number of homes sold without buyer or seller representation was a record low according the most recent survey only 6%.  

If you have an interest in Bay Area homes you will find what you are looking for at our website, www.AboutBayAreaHomes.com.  

There you will find links for home search, listings for bank owned and short sales, home loans, market activity reports, home seller strategies, staging and decorating, my book "Let's Make a Deal, The Insiders Guide to Buying and Selling Real Estate" and more.  Of course I am always available to discuss your real estate or mortgage questions or concerns, just call, text or email me for a prompt response.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

Real Estate and Mortgage Market Updates and Commentary Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Veoh, Vimeo and Yahoo Video by Tube Mogul.

In September I posted a blog and video about two sales.  That story focused on the loans involved in the separate sales. Today I would like to share a new story about two listings, one now pending, the other home remains unnecessarily unsold. Why one is unsold and the other sold illustrates the complex marketplace buyers and sellers are facing today.

What do these two homes have in common are more than you might expect.  They both sit in a quiet residential neighborhood on the peninsula.  They both share the same number of bedrooms and bathrooms and the square footage and lot size are almost identical.  They even have similar upgrades and both are presented to sell…… And there is more, these homes are on the same street as a matter of fact they are next door to each other.  What they don’t have in common is what makes this story so compelling.

You see, this home was a pending sale after 11 days on the market and the seller had five offers to choose from.

While this neighboring home has been on the market close to 180 days and has two price reductions totaling $40,000 and still remains unsold.

Essentially the two homes are virtually identical in every way and both sellers have done a great job with presentation…so what did the seller with the unsold home do wrong? …or asked another way, what did the seller with the pending sale do that the neighbor didn’t?  There is one glaring exception to their similarity; one seller is ready to move on and the other is not. 

It turns out the one difference was in the original asking price.  Markets are constantly evolving and the best strategy a seller can follow today is to offer the home for sale at the bottom of the market value price range.  Remember, both homes have location, upgrades and presentation going for them, however only one seller has priced correctly.

A close look at recent sales indicates a market value range from the low to mid $800’s.  The home that is sold was priced just under $800,000 while the unsold home started out above market value at nearly $900,000 and has two price reductions totaling $40,000.  Frankly, it is still priced to high.  When homes are overpriced the seller ends up with one of two things, no offers or low ball offers. 

Of course that is exactly what a seller doesn’t want!

When it is all said and done, I suspect that the unsold home will either be taken off the market or will end up selling for less than the neighboring house did.

As a seller, how do you learn something about the market, considering the sellers mistake? First, you select an agent that you trust, an agent that welcomes your business, understands current market conditions, has a written marketing strategy and keen negotiating skills.  And second, by listening and heeding the advice of your agent, especially when it comes to presentation and asking price.  In today’s market the highest selling price goes to sellers that present their homes in market ready condition and price them right in the first place.

Remember, it’s not the seller, or the agent but the market that sets the selling price.  There is a big difference between pricing your home to sell vs. pricing to have it for sale.  

Agents that are market experts won’t do their clients the disservice of overpricing.

If you have an interest in Bay Area homes you will find what you are looking for at our website, www.AboutBayAreaHomes.com.  

There you will find links for home search, listings for bank owned and short sales, home loans, market activity reports, home seller strategies, staging and decorating, my book "Let's Make a Deal, The Insiders Guide to Buying and Selling Real Estate" and more.  Of course I am always available to discuss your real estate or mortgage questions or concerns, just call, text or email me for a prompt response.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

Real Estate and Mortgage Market Updates and Commentary Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Veoh, Vimeo and Yahoo Video by Tube Mogul.

The Bay Area Home Activity Reports for October 2009 are now available at www.bayareamarketmetrics.com.  Read on for the latest market news about the Home Buyers Tax Credit extension and expansion, plus why the continuing increase of the Pending Home Sale Index is revealing the Demise of the Buyers Market.

First, the Tax Credit-As I mentioned in my blog and video last week, the Federal Tax Credit has been extended at expanded to include not only first time buyers but also move up buyers that have been in their homes more than five years.  This chart details the old and new programs and can be found under Quick Links on our home page at www.aboutbayareahomes.com.

Today I will focus on the forward indicator of market momentum, the “Pending Home Sales Index”.

As reported by the National Association of Realtors®, the Pending Home Sales Index posted its 8th consecutive monthly gain in September nationwide.

The index now stands 21% higher than it did one year ago and Pending Home Sales are now at their highest levels since December 2006.

A Pending Home Sale is a home under contract to sell, but not yet closed. 

The following Pending Home Sales Reports are taken from our October Market Metric Reports available at www.bayareamarketmetric.com. 

These graphs cover a two years period and as you can see below, San Mateo County and Santa Clara County Pending Home Sales are at their highest point in the past two years. 

As seen in these graphs, Alameda and Contra Costa Counties are reporting a steady number of Pending Sales at an elevated level when compared to two years ago. 

When the Pending Home Sales Index rises, it tells us that market activity has picked up.  October’s data confirms what we’ve been noticing since February — the Buyers Market is coming to an end.

With more homes under contract in the marketplace, homebuyers typically face one or more of the following:

   1. Competitive, multiple-offer situations
   2. Reduced purchase price leverage over sellers
   3. Fewer seller concessions

Therefore, if you’re planning to buy a home in the next several months, know that the 8-month increase in Pending Sales has lead to an increase in closed sales which in turn results in higher home prices and reduced  affordability.

Further evidence can be seen in this recent Case-Schiller Report.

If you intend to buy while rates are low and affordability factors are still favoring buyers, you should be actively working with an agent now.  If you are thinking of selling but have been holding off until the market was showing clear signs of improvement now would be the time to talk with your agent about preparing to list your home. If you have an interest in Bay Area Homes you will find what you are looking for at www.AooutBayAreaHomes.com.  Quick Links is visible when the page opens.

Quick Links 

Search All Bay Area Homes For Sale
Search Bay Area Bank Owned and Short Sales Only
Bay Area Market Activity Reports by County
Rent vs Own Calculator
Annual Percentage Rate Calculator
2009-2010 Homebuyer Tax Credit Details
Our Home Loan Center
For Sellers Only
Home Staging Services
Mobile Notary Service
Free PDF Copy of Russ Boyd's Book
Intero Foundation Information
About Our Team

There you will find links for home search, listings for bank owned and short sales, home loans, market activity reports, home seller ideas, staging, my book "Let's Make a Deal, The Insiders Guide to Buying and Selling Real Estate" and more.  Of course I am always available to discuss your real estate or mortgage questions or concerns, just call, text or email me for a prompt response.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

To celebrate Halloween, it looks likeUncle Sam is handing out treats for homebuyers.

As it stands right now the highly successful $8000 tax credit for first time homebuyers is set to expire on November 30th.  The Halloween Treat is that Senators have agreed to extend the $8,000 first-time homebuyer tax credit.  Once the Senate officially votes on the bill it will move to the House of Representatives, which strongly supports the extension. The administration has indicated strong support for an extension of the tax credit as well.

And adding to the “Treat”, the new plan would offer a $6,500 credit for repeat or move-up homebuyers who have lived in their primary residence for five years or more. The tax credits would be available to buyers who sign purchase agreements on a new or existing primary residence between December 1, 2009 and April 30, 2010. Buyers would have until June 30 to close on their new homes.

There is an $800,000 price limit on all homes eligible for the credit.   Adding more to the Treat is that more buyers would be eligible because income limits for all buyers would rise to $125,000 per year for individuals and $225,000 for married couples.  That’s considerable more that the current program allows, the limits are $75,000 and $150,000 respectively. The credit does not have to be repaid unless the home is sold or ceases to be the primary residence within three years.

Remember, this legislation has not yet passed, but with the Senate’s approval, there is every indication that an enhanced Tax Credit Extension will be approved.  I will be sure to keep you informed as it moves through Congress toward approval.

And another much needed “Treat” for Homebuyers: President Obama is expected to sign a resolution passed late Friday by Congress extending the current limits for Fannie Mae, Freddie Mac, and FHA loans through 2010. The limits were set to expire at the end of this year.

The limit remains at $729,750 for Bay Area Counties throughout next year. T his is expanded limit is especially critical for “high cost” areas such as the Bay Area, where more than 80 percent of all loans are financed by Fannie Mae, Freddie Mac, or FHA.

I’m committed to being available to meet the real estate and home financing needs of my clients.  If you have an interest in Bay Area Homes you will find everything you need at our online resource center, www.AboutBayAreaHomes.com. 

Just look under Quick Links on our homepage. There you will find links for home search, listings for bank owned and short sales, home loans, market activity reports, strategies for home sellers, staging and presentation, my book, “Let’s Make a Deal, The insiders Guide to buying and selling Real Estate” and more.  Of course I am always available to discuss your real estate or mortgage questions or concerns, just call, text or email me for a prompt response.

If you have an interest in Bay Area Homes you will find what you are looking for at www.AboutBayAreaHomes.com.  Check out Quick Links on our homepage. 

Quick Links
Search All Bay Area Homes For Sale
Search Bay Area Bank Owned and Short Sales Only
Bay Area Market Activity Reports by County
Rent vs Own Calculator
Annual Percentage Rate Calculator
Our Home Loan Center
For Sellers Only
Home Staging Services
Mobile Notary Service
Free PDF Copy of Russ Boyd's Book
Intero Foundation Information
About Our Team

There you will find links for home search, listings for bank owned and short sales, home loans, market activity reports, home seller ideas, staging, my book "Let's Make a Deal, The Insiders Guide to Buying and Selling Real Estate" and more.  Of course I am always available to discuss your real estate or mortgage questions or concerns, just call, text or email me for a prompt response.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

Over the past several weeks I have been asked about several recent media stories surrounding the real estate and mortgage market. 

The most asked about topic has been the expiration of the $8000 Federal Tax Credit.  And yes, what you have heard is correct; it is set to expire on November 30, 2009. Effectively, that means that unless you are in escrow now your purchase will likely close after the expiration date.  Will it really be gone? 

From all the data I have seen, the credit has contributed to the stabilization of the real estate market and it seems very doubtful to me that congress and the administration will let it expire.  Every trade group that has anything to do with housing is actively lobbying for it to be extended.

Another critical piece of the housing market stabilization, especially here in the Bay Area has been the “temporary” increase in the “high cost area” conforming loan limit to $729,500.  Yes, you heard me right, “temporary”.  Without going into all the legislation that brought it about, the $729,500 loan limit was made as a “temporary” limit and will expire at the end of the year. 

Again, this been instrumental for stabilizing housing in the Bay Area market and every trade group is lobbying for the increase to be maintained.

In a blog a few months ago I spoke about the California Association of REALTORS® Mortgage Protection Program (C.A.R.H.A.F. MPP) for first-time home buyers.

The plan, which is free to the buyer, provides up to $1,500 per month, for six months, to help make their mortgage payments in the event of a lay-off. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months.  This program, which to date as issued hundreds of policies, is set to expire 12/31/09. 

If you plan on closing a purchase transaction before the end of the year, talk to your REALTOR® for details.

In another blog post earlier this year I shared with you a warning about “foreclosure rescue” and “loan modification” scams.  One of the warning signs was if the person or organization offering the assistance wanted fees up front.

Currently, the California Department of Real Estate is investigating over 1300 complains and has issued hundreds of “cease and desist” orders.  Most of the scams include the payment of advance fees. 

This legislation, which was effective the day it was signed by the Governor, prohibits the collection of advance fees from anyone offering loan modification or foreclosure rescue or forbearance as a service.  Keep in mind “all persons” includes real estate agents or brokers and attorney’s.  Advance fees cannot be collected, period.

And, good news for those that have mortgage loans in excess of $1million.  According to an article in Forbes magazine the IRS issue a memo that concluded that a taxpayer can deduct interest on the first $1.1 million of a home mortgage--$100,000 more than earlier legal findings allowed.  The article quoted Kaye Thomas, a tax lawyer who publishes a tax guide at www.fairmark.com who stated “the affected homeowners could save $3,000 a year or more. Moreover, taxpayers can file amended returns for the past three years and claim thousands in refunds.” 

So, if this applies to you, I suggest you contact your tax preparer. 

If you have an interest in Bay Area Homes you will find what you are looking for at www.AboutBayAreaHomes.com.  Check out Quick Links on our homepage. 

Quick Links
Search All Bay Area Homes For Sale
Search Bay Area Bank Owned and Short Sales Only
Bay Area Market Activity Reports by County
Rent vs Own Calculator
Annual Percentage Rate Calculator
Our Home Loan Center
For Sellers Only
Home Staging Services
Mobile Notary Service
Free PDF Copy of Russ Boyd's Book
Intero Foundation Information
About Our Team

There you will find links for home search, listings for bank owned and short sales, home loans, market activity reports, home seller ideas, staging, my book "Let's Make a Deal, The Insiders Guide to Buying and Selling Real Estate" and more.  Of course I am always available to discuss your real estate or mortgage questions or concerns, just call, text or email me for a prompt response.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

Real Estate and Mortgage Market Updates and Commentary Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Veoh, Vimeo and Yahoo Video by Tube Mogul

I’ve always tried to keep my blog posts and videos focused on topics related to real estate and mortgage topics that are intended to provide information to you.   Today I want to share something with you that we do here at Intero that makes me especially proud.

Although, as I think about it, anything that benefits the communities where we live is really is about you as well.

What I’m talking about is the Intero Foundation. Now you may never have heard of the Intero Foundation and the truth is, neither had I before we joined the Intero Team about a year ago.

You see, it was our intent to affiliate with a real estate company that was different.  Now different isn’t always better, however, we wanted to partner with an organization that not only professed values but actual lived the commitment.  As it happens, one of Intero’s stated values is commitment – defined as; a pledge to do something, a state of being bound intellectually to a course of action.

As REALTORS® we earn our living by providing service to our clients and communities.  One way that Intero expresses this commitment is through the Intero Foundation.  Earlier this year I was invited to serve on the Intero Foundation Committee. 

The committee is made up of 16 Intero REALTORS®  that make a commitment to approve grant requests to qualified organizations that are diversified in size and mission, but all work to positively impact the growth and well being of children by enhancing their education, personal development and emotional well being.

I am proud and humbled to serve on the Intero Foundation Committee. 

As the Foundation representative of the San Mateo office of Intero, I personally had the honor, on behalf of the Intero Family, to present grants to three organizations in the amount of $33,000. And in the past couple of weeks the Foundation announced our most recent list of beneficiaries, which received $100,000 divided amongst them.

These organizations work to make our children – and our communities -- stronger: Dream Power Horsemanship, Rape Trauma Services, Family Connections, My New Red Shoes, Jacob’s Heart, Bill Wilson Center (SSJFY), Small Steps Foundation, Community Solutions, and the Learning & Loving Education Center .

Since its inception, the Intero Foundation has donated $1,367,365 to local non profit organizations that serve children. To give you an idea of all the non-profits The Foundation has been able to contribute to since its founding see the long list following this post or view by visiting Intero Foundation Information.

Each member if the Intero Family is proud to support these organizations.

So why does this matter to you? Well, there is an obvious connection: In the words of Interos President and CEO, Gino Blefari, “We are helping to make the place you call home (or are hoping to call home) better. And that matters. “ Gino goes on to say, “we are also expressing something about ourselves that might interest you: That we are a big organization, but not too big to remember that we are part of something still larger; that we take seriously our role as an organization rooted in a place; that we believe we must give in order to receive.”

If you share these beliefs, if it matters to you what your real estate company does in the wider world, then we have created something for all of us.

If you have an interest in Bay Area Homes you will find what you are looking for at www.AboutBayAreaHomes.com.  Check out Quick Links, which is visible when the home page opens, for information about home search, bank owned and short sales, home loans, market activity reports, home seller ideas, staging and more.  Of course I am always available to discuss your real estate or mortgage questions or concerns, just call, text or email me for a prompt response.

Since its inception, the Intero Foundation has donated $1,367,365 to local non profit organizations that serve children. To give you an idea of all the non-profits The Foundation has been able to contribute to since its founding - here is our long list:

A Brighter Today Foundation, Alum Rock CounselingCenter, Assistance League of San Jose, Assistance League of Saratoga, Barrett Elementary School, Barrett HomeSchool & Community Club, Bay Area Alliance for Youth Family Svcs, Bay Area Crisis Nursery, Bill Wilson Center (SSJFY), Buena Vista Auxiliary, Buenas Vidas Youth Ranch, Burnett Elementary School, Burton Elementary School, CampHope, CampTaylor, Carlmont Motivational Center, Children's Hospital Branches, Community School of Arts, Community Solutions, Concord Youth Center, Cross Cultural Community Service Center, Cupertino Community Services, Dan Herbert CampHope, Diablo Valley Assistance League, Discovery Counseling Center, Discovery Counseling Center SCIP Program, Downs Syndrome Connection, Estrella Family Services, Family Connections, Family Giving Tree, Franklin McKinley Education Foundation, Friends Together, Future Families, Future Vision Mentoring, Generations in Jazz, Hellyer Elementary, Housing Industry Foundation, Interfaith Council of Contra Costa County, JW House, Learning for Life, Let Them Hear Foundation, Lincoln High School, Los Paseos Elementary School, Montalvo Arts Center, NAMI Contra Costa, National Alliance of the Mentally Ill, One Step Closer, Open Heart Kitchen, Organization of Special Needs Families, PACE, Partners for New Generations, Project Help, Quilt Museum, Rape Trauma Center, Rebekah Children's Services, Role Model Program, San Francisco 49ers Academy, San Jose Education Foundation, Schmahl Science Workshop, Shelter Inc. of Contra Costa County, Silicon Valley Education Fund, Silvar-Charitable Foundation Trust, Small Steps, Social Advocates for Youth, Special Olympics, St. Rose Hospital Foundation, St. Joseph Family Center, Starting Point Arts, Super Stars Literacy Program, The Salvation Army, The Wellness Community, The Wish Book, Upward Bound Youth, US Relief for Unicef, Via Services, Westwind Riding Institute.

If you are in the San Francisco Bay Area, my team and I have successfully represented clients in San Mateo, San Francisco, Santa Clara, Alameda, Contra Costa and Santa Cruz counties for the past 10 years.

Compete information available at www.AboutBayAreaHomes.com.

Mortgage information is available at our Home Loan Center.

View the latest Real Estate Market Activity reports at www.BayAreaMarketMetrics.com.

Search for all bay area homes for sale at www.AllBayAreaHomesForSale.com.  Or for short sales and bank owned properties only,  search www.AllBayAreaBankOwned.com.

For sellers, we provide market analysis, home preparation and marketing services second to none.  Visit  For Sellers Only or just call me at 650 325 7877 or email Russ@BayAreaTeam.com and we’ll design a plan specific too your needs.

Home Preparation and Staging information is at www.PicturePerfectHomeStaging.com.

To receive a PDF copy of my book, click Let's Make a Deal, the Insiders Guide to Buying and Selling Real Estate. For a signed hard copy,  just send me an email.

We invite you to view our growing collection of short videos, slideshows and links at www.OurTeamPiks.com.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

Real Estate and Mortgage Market Updates and Commentary Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Veoh, Vimeo and Yahoo Video by Tube Mogul .


I was discussing a refinance with a client the other day and she mentioned seeing an ad on a major website for a 30 year fixed rate loan with a rate of 4.375%.  I told her that rate was way below the market rate of between 4.75% and 5% and asked her about fees and points.  She told me there was no mention of fees or points, and as you can see here that’s true, well sort of anyway.  The APR or Annual Percentage Rate is displayed and that is the key to understanding how to compare loans.

 Disclosing what is called the Annual Percentage Rate or APR was intended to give the consumer a way to compare mortgage loan rates and costs between lenders and has been required since the inception of Truth In Lending laws since 1968.  Additional disclosure requirements were added in 1974 with the passage of RESPA.

Disclosure rules were amended again with the recent implementation of the Mortgage Disclosure Improvement Act of 2009. 

 The truth is, that only comparing the rate and APR is not perfect and should not be relied on solely when considering a mortgage loan.

 Now, back to my story.  Using an APR Calculator (which is available under Quick Links on our website, www. Bayareateam.com) I plugged in the numbers and found that in order to get the APR disclosed in the ad, some $29,000 in additional fees are being added to the loan.  Also, in the small print the advertised rate is only good for loans up to $250,000. 

This is a case of where the APR is giving the right message, but my client was shocked to learn that some $29,000 in fees and or points where being added to achieve this low rate.  Keep in mind there is no mention of points, just the rate and the APR, which is all that is required by the law.

1. Remember, APR is supposed to HELP consumers, not confuse them. Clearly this lender is charging hefty fees or a combination of fees and points. This brings us to our next point ...
2. Points are tax deductible costs - most other fees are not. Charging high fees in lieu of points is not in the consumers best interest.
3. It’s common to see rates quoted with NO POINTS to make them look better to    consumers. However you have to know the total costs in fees and points to get the true picture.
4. APR is "pliable" - Certain fees are calculated into the APR calculation, others are not. Do not assume lenders don’t become “creative” with the "names" of fees to artificially lower their APR's.  I have a list of over 100 items that can be included in the APR calculation, however, the common names for fees that make up the APR include  processing, appraisal, underwriting, funding, mortgage insurance, admin fee, document preparation and of course points, to name a few. 
5. A good faith estimate must be given within three days of the application.  Be aware with the passage of the Mortgage Disclosure Improvement Act of 2009, lenders cannot charge  an application fee until after you have been provided a Good Faith Estimate.

Personally, the only fee my clients pay before the loan closes is the appraisal fee and that’s not until  the loan is approved and we are ready to lock the rate. To me, application fees are just another deceptive way to lure a consumer in and tie them to the lender.

Numbers can be tricky and they can be used in downright deceiving ways at times.

That is why it is vital that you sit down and think your borrowing decisions through. You would be well served by talking to an expert you can trust.  You can do the Annual Percentage Rate calculation yourself on our website.  Look under Quick Links for the APR Calculator, which is visible when you open the page.  Compare loans in different ways.

If you are in the San Francisco Bay Area, my team and I have successfully represented clients in San Mateo, San Francisco, Santa Clara, Alameda, Contra Costa and Santa Cruz counties for the past 10 years.

Mortgage information is available at our Home Loan Center.

View the latest Real Estate Market Activity reports at www.BayAreaMarketMetrics.com.

Search for all bay area homes for sale at www.AllBayAreaHomesForSale.com.  Or for short sales and bank owned properties only,  search www.AllBayAreaBankOwned.com.

For sellers, we provide market analysis, home preparation and marketing services second to none.  Visit  For Sellers Only or just call me at 650 325 7877 or email Russ@BayAreaTeam.com and we’ll design a plan specific too your needs.

Home Preparation and Staging information is at www.PicturePerfectHomeStaging.com.

To receive a PDF copy of my book, click Let's Make a Deal, the Insiders Guide to Buying and Selling Real Estate. For a signed hard copy,  just send me an email.

We invite you to view our growing collection of short videos, slideshows and links at www.OurTeamPiks.com.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.