Real Estate Toronto Canada

Last year a client of mine – Kenneth Friesen – purchased a great 1 bedroom and den unit at Tip Top Lofts. He hired designer Jewel Weeks to furnish and decorate it for him.  Kenneth is a very interesting guy and he gave her full creative freedom to do with it as she wanted. The results speak for themselves and the loft is currently featured in a 6-page spread in the September issue of Style at Home magazine.

Check it out in the September issue due out any day now and congrats to Jewel and Kenneth for the feature. I have posted a few more pics after the jump.

What? A pretty Oshawa waterfront area! Are you kidding me? Can I really hope for it?

Imagine taking a stroll along the waterfront and enjoying the view of all the gorgeous boats sitting in the marina. A lovely little cafe or pub with a welcoming patio for a refreshing beverage. Somewhere quaint to enjoy the fantastic view of the blue water. Now imagine all this happening in Oshawa. Yes, you read correctly, Oshawa! This really is a great city with plenty to offer and it’s about time we spent a little money on the waterfront to bring it back to its former glory.

The federal funding announcement stated a commitment of $19.4 million for environmental clean up, east wharf port consolidation and landscape buffers. Will we get a pretty lake front and more jobs? How will this affect the tax base in Oshawa (hopefully it’ll all be good!)?

So how did this all come about? Go to the Oshawa Habour site for an overview of the recent information meeting to read more of the details I summarize here. Briefly, in 1966 Oshawa gave the land away. Then in 2006 there was a proposal to put a rail spur on part of the land so Oshawa sued to get the land back. Fight, lawsuit, money (yes, your tax dollars) and …. nothing! So in 2009 the Crown tried to negotiate a settlement. Negotiations ensued and in May, 2010 an agreement was reached. Oshawa gets some (not all) land back and a pile of cash as mentioned above. The city does have to spend about $1 million for parkland, but has that money in a reserve fund already, so hopefully we are good to go.

Is the deal perfect? No. But perfection is in the eye of the beholder and there are always two sides to every arguement. We all need a little give and take to reach an agreement (not unlike most real estate deals – but that’s another blog!). So let’s take what we got and run with it! Hopefully you and I will be discussing your new home purchase over a beverage while sitting outside on the deck, overlooking great boats and clear blue water!

The recent stormy financial atmosphere across Canada, including Ontario and Toronto, has led to an increase in homes sold by the bank, sold under what is called “Power of Sale”. Homes sold by the bank are typically ones in which the former homeowner unfortunately could not pay their mortgage.

"Power of Sale" homes require extra caution on the part of Toronto homeowners.

The agreement may have a lot more clauses included in a schedule to the agreement of purchase and sale than the average home buying transaction, such as:

The buyer is responsible for their own inspection and appraisal, as well as accepting the property as is with regards to the state of repair.

Any information provided by the seller/lender should be verified by the buyer or their representatives and it is the buyer’s responsibility alone.

If at anytime prior to closing the original owner can pay their mortgage back up to date, the transaction is voided.

It’s no secret that a lot of these homes have some heartache attached, but headaches can be abundant too. It’s very wise to have your lawyer look over the lengthy, complicated document to ensure that you’re okay with the many clauses involved in these power of sale homes. You are also within your rights to make the offer conditional on your obtaining a mortgage, being happy with the home inspection, checking up on what the seller has told you, and having your lawyer approve the lender’s schedule to the agreement.

What is “Power of Sale” and What Does it Mean to Toronto Home Buyers? is a post from: Toronto Real Estate Updates

Over 5 days, one Greater Toronto Area builder is going to attempt to build an entire 2,300 square-foot home, to be sold with proceeds going to support a new intensive care unit at the Bowmanville Memorial Hospital.

An artist's rendering of the Greater Toronto Area 5-Day Build Project home.

According to Halminen Homes, the home is expected to sell for over $400,000.

The home is being built in the town of Courtice (pronounced “Curtis”), Ontario, which is located only 70 kilometers east of Toronto, just past Oshawa. Building begins at 6 a.m. on Monday, August 9th and will last until Friday afternoon with the builders are working over time, 24 hours per day.

A team of over 100 people with Halminen Homes will build the home. Normally, a home of this size can take anywhere from 45 to 60 days to be built. The 5-day build also includes landscaping, furnishing, interior decor and a complete double-car attached garage.

If you’re interested in going to see the build, visit the builder’s blog.

The Greater Toronto Area 5-Day Build Project is a post from: Toronto Real Estate Updates

With mortgage rates at all time lows, it makes a lot of sense to fix in your rate and refinance at what may turn out to be the lowest real rates ever. Getting a fixed rate mortgage makes a whole lot of sense for any one who is pretty sure that they will be in their home for a long time. But even now, even with fixed rates as low as they are, fixed rate mortgages aren’t the right choice for everyone. Adjustable Rate Mortgages (ARMs) are priced even lower, and though you are taking on some extra risk, they are the best choice for many. The question is, when does it make sense to go with an adjustable rate mortgage. ARMs are structured in different ways, but the most popular, and safest ARMs are the longer term adjustables which are fixed for a period of time before adjusting. Most ARMs amortize, or pay down, over 30 years, just like the most popular fixed rates. The difference is that the rate is only fixed in for a specific period of time, and then it floats, up or down based on what is happening in the market. The time that the rate is fixed in can be as short as one year, or as long as 10 years. The rates are usually lowest for the shortest periods because you are taking on more risk that the loan will be higher if mortgage rates increase. When you are looking at ARMs, you want to get the lowest total cost for the time you plan on being in the home (or the mortgage). Taking a 1 year or even a 3 year ARM rarely makes sense in a market like this. But a longer term may be a great deal. The 7-1 ARM (fixed for the first 7 years then adjusts once a year after that) is over 1/2 a point less than a comparable 30 year fixed rate mortgage. If you don’t plan to stay with your mortgage forever, this could save you thousands of dollars over the life of the loan.

Questions to ask to see if an Adjustable Rate Mortgage is the right choice for you:

How long do you think you will be in the home?  A lot of this has to do with where you are in life, and what you expect to happen in the future. Are you a single income now, but expect to have a spouse working down the road? Do you expect to out grow this home as your family grows? Do you expect to be transferred or are going to need to move out of the area at some point? Or maybe you are at the other end of the spectrum and have kids who are finishing up with school and are thinking about downsizing in the future. The key is that if you have a good understanding of your future needs, and you really don’t expect to be in the home past a certain point, an ARM may be the right choice.

Is your income steady, declining, or likely to go higher? Are you a single income now, but expect to have a spouse working down the road? Are you in a job where you know that your income will be higher as time goes by? If you feel confident that your income will rise, an adjustable could be a good way to go. On the other hand, if your income is likely to be topped out and you don’t expect raises of more than the cost of living in the future, you are better served by going with a fixed rate where you will know the payment is going to stay affordable, even if you are there longer than expected and interest rates jump.

Do you have extra money coming in that you can use to pay down the mortgage? I’ve worked with borrowers who get get bonus as a substantial amount of their compensation. If you are getting a smaller monthly payment, but a big check once or twice a year, it may be easier to keep the monthly payment small and then pay extra toward the mortgage when you get these big checks. ARMs fit in well here (Interest only mortgages are sometimes appropriate, too). Everyone’s circumstances are different. The best approach is to match your needs to the loan that is most appropriate for you.

What is your risk tolerance? Will you be able to sleep at night if rates do move higher? With mortgage rates at all time lows, we know that rates have to go up, the only question is when, and how much. If your circumstances change, and it looks like you will need to stay in the mortgage longer than you planned, is this going to add to your stress? There are safety features built in, but if you are still in the loan when the payment adjusts, it could be a big jump. You will have saved a lot of money up to that point, but unless you used the savings as part of an investment plan, you need to be ready for the higher payment. Consider your risk level and temperament before choosing an ARM. There are a lot of people who would benefit financially from and adjustable rate loan, who still are better off taking on a fixed rate loan.

The other thing to keep in mind when deciding which loan is right for you, is that the future doesn’t always turn out like we expect. There are a lot of homeowners now who are stuck in homes too small for their needs because they can’t afford to sell and buy a new home with the market conditions now. For most home buyers who took on ARMS years ago, their adjusted rates have fallen as the ARMs came due. That probably won’t happen in the future, but if you match up your real needs and an accurate estimate of what your situation will be over the years you plan to be in the home, an Adjustable Rate Mortgage can save you a lot.

Peter Thompson 630-479-6424       

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Company

Since starting in real estate back in 1980 I’ve seen many ups and downs of the Toronto market over the years – booms, busts and lots of in between.

Almost New Downtown Toronto One-Level 2-Bedroom Suite

In the ‘old days’ before the early 2000’s a traditional Toronto summer house and condo market meant a slow-down of activity and sales… listings would decline, buyers would relax on vacation or stay in because of the heat. 

That all changed over the past several years as increased buyer activity kept the market momentum going strong through the traditional ’slow periods’ of summer and December/January.

However I think buyer fatigue from all the manufactured multiple offers and market frenzy of this spring has caused us to revert to a more traditional summer market!

As of mid-July the Toronto Real Estate Board reported 2,790 sales, down 37% from the same period in 2009.  The average sale price for the period was $427,931 – up a modest 8% from a year ago and down 1.7% from the June 2010 average price.

The listing inventory is 22,886, down slightly from June but up 27.4% over July 2009.

Critically the bellweather ratio of sales-to-listings dropped into neutral market territory for the first time since March 2009 – at mid-month it was at 25.4% (24-28% is a neutral market, below 24% is a buyer’s market and above 28% is a seller’s market).

Thus, for the first time in 15 months buyers have a much better opportunity to negotiate an excellent price for themselves.  Sellers who are moving up or down in the market still benefit on their buying side of the move.

The Bank of Canada moved the bank rate up 0.25% this past week bringing the regular bank’s prime rate up to 2.75% – still very modest.  With many institutions offering Prime minus 0.6% for a variable mortgage, that rate now sits at just above 2%.  Five-year fixed mortgages can easily be had in the low 4’s.

July Toronto Real Estate Market Showing Signs Of A Traditional Summer (For A Change) is a post from: Toronto Real Estate Updates

It seems Toronto is never going to get a break from this heat. Sure, the Weather Network promises a nice thunderstorm with torrential downpours day after day, but she’s just teasing. Many Toronto homeowners will take to using air conditioning in order to cool off or get a decent night’s sleep. Smart homeowners also know that the smallest crack or opening will seriously lessen the efficiency of their air conditioning unit, and will seal up their homes to prevent their precious cold air from slipping out through drafty windows.

Hidden mold found after a Toronto homeowner started feeling ill, right after shutting all the windows and turning on the air conditioner.

If within weeks of sealing up your home and cranking up the air conditioning, you begin to feel a little funny… you might have a mold problem. You can’t see it, but it might be hiding within the walls, especially if they’re made of drywall and your home has experienced any kind of leaks, flooding or water damage in the past. Older homes, new homes and impeccably spotless homes – mold does not discriminate.

Symptoms of a mold infestation can vary greatly from person to person. You may have traditional allergy symptoms like watery eyes and a runny nose, or very serious symptoms that don’t make any sense, like a very sore throat and trouble breathing.

An indoor air quality test can help you determine whether you have a problem or not. Some mold can be toxic, while some is merely an irritant or is completely harmless. If air quality testing is done and finds mold, samples can be sent to a laboratory to determine what you’re dealing with and what kind of action needs to be taken.

It’s important to act on your intuition if there seems to be a problem, because repeated exposure can lead to asthma or extremely severe allergic reactions that require hospitalization.

Indoor air quality testing also has another added bonus for home sellers: home buyers are becoming increasingly concerned about their indoor air quality, and it’s one of the criteria required for LEED certification in new buildings. A recent indoor air quality assessment (whether it comes up clean or you can show action has been taken to rectify any problems) will tell prospective buyers that you and your home are on the “green” side. Mold is also a hidden defect that needs to be disclosed to future buyers to avoid serious problems down the road.

Over-Sealing Your Toronto Home to Conserve Energy? Get An Indoor Air Test is a post from: Toronto Real Estate Updates

In a recent Downtown Toronto condominium-naming contest, “That Big Steel Thing Downtown” was a contender, chosen by the community to be voted on as the next possible name of a new downtown Toronto condominium development.

Toronto's Hockey Hall of Fame. Just one example of stand-out, beautiful architecture in the city.

The suggested name seemingly lends a bit of credibility to one of Toronto’s mayoral candidates vision for a “prettier” downtown, without as much “boring, glass, concrete blocks,” according to Sarah Thomson.

She said she would create a new service that would let developers fast-track building concepts in which they’ve put effort into designing, as opposed to going through the regular process of having developers get approved, which can take years.

This is a very interesting idea for sure, although the buildings in and around the Greater Toronto Area are far from boring, stale and unimaginative. The city is filled with beautiful heritage buildings, innovative sky scraper designs and a wide variety of home styles.

The Hockey Hall of Fame, ChumCity/CTV building on Queen Street, Ontario Place, the CN Tower, the Rogers Centre, Nathan Philips Square, the Royal Ontario Museum, Old City Hall, Union Station and Casa Loma are just a tiny sampling of the intriguing, diverse and unique architecture found within the city limits.

Without the addition of a new program to benefit developers, condominium and other building designers are already competing to bring Torontonians something better with each building constructed. Just look at the Five Condos at 5 St. Joseph, which uses a heritage building as its own facade. One also only has to peek around a corner to find Chinatown, Greek Town or Little Italy, where building and community styles from around the world are making homes within the city.

Our skyline is booming, but it’s certainly not boring in Toronto.

Toronto: Boring Architecture? Never. is a post from: Toronto Real Estate Updates

As far as I’m concerned it had to happen sometime.  The foolishness of ‘manufactured’ multiple offers in Toronto had gone on for far too long and was hurting home buyers, not benefiting house or condo sellers and was wasting a lot of everyone’s time and energy.

Motivated sellers will still get their homes sold and motivated buyers now have more choice in what they would like to buy.

I don’t know how long this blip in the Toronto real estate market is going to last.  In the past few years, the summer market has been as strong as the rest of the year.  In the 1980’s and 1990’s July and August sales were always down – people going on vacation, hot weather etc -  so we might just have reverted to that old traditional marketplace.

So… watch the video, get caught up on the latest Toronto Real Estate Board stats and get a feel for what you should be doing in today’s less stressful real estate market.

Toronto’s Real Estate Market Slows In June… Continuing To Do So In July is a post from: Toronto Real Estate Updates

We are bordering on a buyer’s market right now. I wouldn’t say we are quite there yet, but with the Sales:Active Listings ratio hovering around 35% for downtown condos, buyers certainly have choices when they go out looking for condos this summer. But I don’t want to talk about buying for a change, I want to talk about selling. Specifically, as a seller in this market, you better be able to defend your asking price.

In a seller’s market, where a monkey could sell a condo, agents and sellers will quite often pull a price out of the air without giving it any thought. In a buyer’s market, it’s back to the fundamentals of marketing: Product, Place, Promotion, and PRICE! Yes, choosing the correct asking price is a very important piece of the marketing mix for selling your property.

If you over-price your property, you are shooting yourself in the foot. You will get less potential buyers through your property, less offers, and potentially no offers at all. Inevitably you will have to reduce your price but by then your listing will be ’stale’ and most potential buyers will have moved on.

You might think there are no risks associated with under-pricing, but there are. Underpricing a listing in a seller’s market results in multiple offers and potentially an artificially inflated selling price. Underpricing in a buyer’s market when there are less active buyers and more listings means you could end up selling your property for less than it is actually worth, but you would never even know it because there just isn’t the same critical mass of buyers out there.

Bottom line, you (and more importantly your agent) need to be able to defend your asking price when a buyer’s agent comes a calling and says, “How flexible is the seller on the price? It is a buyer’s market after all…”. Questions or comments? Thinking of selling? Contact me.

“You get what you pay for.”

We’ve all heard it, but sometimes a great deal is just too tempting to pass up.

Don't leave your costly renovations to just anyone you find in the Toronto phone book.

There are a ton of reasons to renovate your Toronto home. You might want to boost resale value, or you may just want so jazz it up a bit for yourself. Perhaps you want a new sunroom, patio or spa shower. The reasoning varies as much as individual tastes, but one thing is always constant: use a reputable contractor.

The “Underground Economy” is composed of tradespeople, contractors and other services that don’t pay taxes and are otherwise not legitimate. They don’t charge sales tax, providing you with a cheaper option. However, they also don’t pay the sales tax themselves or pay income and payroll taxes.

The Ontario Home Builders’ Association estimates that about 37 per cent of residential renovation work is done by underground contractors. While recent renovation tax credits and rebates made it more worthwhile to take the time to find an approved contractor, there are other reasons to consider. The most important of which, is that fly-by-night contractors can tend to do work that’s not as good as it should be, not take out the required permits and leave the homeowner with zero recourse.

When looking to renovate:

Check out the Better Business Bureau website. It’s always wise to do this, because an “F” rating doesn’t mean the company will stop operating. There will also be a list of the types of complains and the resolution taken, as well as any other relevant information. Do keep in mind though, that just because a company is not listed doesn’t mean it’s fraudulent.

Ask the company for references and proof of insurance. Reputable contractors will be as happy to show you their proof of insurance (liability especially) as they are their references. If the company doesn’t have the proper insurance and someone gets hurt, the homeowner could be liable.

Always have a contract and make sure it’s complete. It should include final prices, completion dates, permits that need to be taken out and both the homeowner and company’s contact information.

Some things to consider before renovating your Toronto home is a post from: Toronto Real Estate Updates

The markets are now coming around to the view that inflation is not on the near horizon, and that our recovery is going to be a long, slow grind. As a result, the stock market is faltering and as money rushes into the safer haven of bonds, mortgage rates are at their best levels ever. Consumer confidence readings are down, inflation is nearly non-existent, and the Fed meeting minutes from last month show that the they expect slower growth going forward. The reality is that we are going to have to deal with high unemployment and a tough housing market for quite some time. This is all bad news for the economy in general, but it is a big enticement for those who can take advantage of the lowest mortgage rates since they’ve been keeping track of mortgage rates (there were lower rates years ago, but they weren’t for 30 year fixed rate loans). The question now is whether these low rates are  just a blip before they head higher, or if rates will hold at these levels or drop even lower. Last year a lot of people lost out on the lowest rates at the time (the 4.75% range) because they were waiting for rates to drop to 4.5%. The good thing is that there is a solution to this problem. We can often do refinances with no closing costs, so if rates do go lower, you aren’t out any money. Also, if rates drop by a lot while we are processing the loan, we will do our best to renegotiate for a better interest rate. One thing we know about the market is that it is always volatile, and rarely does what is expected. If you own a home and have a rate of 5.00% or higher, it makes sense to at least consider refinancing.

Here are the current Chicago Illinois Home mortgage rates for an A+ (740 Fico or above), full doc single family home purchase or rate/term refinance on a 45 day rate lock, with 0 points, and no origination fee, best FHA rates assume a 660 Fico score, but loans are available with credit scores as low as 620. Mortgage rates in other states may be slightly different, give me a call and I will give you an accurate quote for your particular situation. The conventional and FHA rates are based on the highest conforming loan amounts, which give the best pricing. Again, there are many factors which affect mortgage rates and your ability to be approved for a loan. These rates may not fit your situation and this is just a sample of the programs that are out there. If you would like a quote for your personal situation, or to get pre-approved for a mortgage, give me a call or contact me (Illinois mortgage company) and I will take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

For Jumbo loans over $417,000

*(Another option is to break your Jumbo loan into 2 parts a conventional to the limit of $417,000 and a HELOC or fixed second mortgage for the rest. The blended rate is usually much better than a single loan would be.)

** 5-5 ARM is fixed for first 5 years, with 2/6 caps it can’t go more than 2% above the start rate for the next 5 years. 2% cap for next 5 years – so a blended rate over 10 years is no more than 1% over the start rate. Super Jumbos available.

FHA LOANS 3.5% down payment FHA Maximum varies by County

FHA APR reflects 3.5% down payment and the effect of mortgage insurance on the loan. Call for information on no-cost FHA streamlined Refinances

FHA 203K Rehab Loans

Call for Quote

VA Veterans Administration 0 Down Loans

Call for information on no-cost VA Streamlined Refinances

These are just a few of the mortgage programs and mortgage rates available. Which option is best for you depends on your own specific goals and needs. If you have any questions or want to go over your situation in depth, let me know how I can help.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Company

Back in February, we launched Publicize: Facebook as a way to connect your WordPress.com account to your Facebook profile.

In March, VideoPress added support for Facebook so that when using Publicize, your videos would get added to your Facebook update as well.

Until now, we’ve neglected your images.

Starting today, however, we’ll cherish your images as much as we already do your text and video; when sending a Facebook Profile update, WordPress.com will include any image you upload to the post. Image support was the #1 most requested feature for Publicize: Facebook, and we’re happy we finally got around to it

(Before you ask, the #2 most requested feature is the ability to update Facebook Pages as well as Profiles, so it’s already on our list.)

Since we started, you’ve sent out nearly 1.3 million Facebook updates from WordPress.com. Keep them going!

NB: Only the first five images uploaded to a post and included directly, in a gallery, or in a slideshow will be sent to Facebook.

And the answer is: a lot, according to a new survey by TD Canada Trust. Toronto first-time buyers are looking for all of the extras like additional bedrooms and all of the nicest appliances, but they intend to stick around for a lot longer than first-time buyers have in previous years. Instead of moving repeatedly to find that perfect home, they’d rather buy a home that will last them a longer chunk of their lives the first time.

Toronto first-time buyers are looking for homes that will last.

The TD Canada Home Buyer’s Report shows that most Canadians are looking to pay less than the asking price for new homes rather than older homes or condos. The majority of those surveyed, about 75 per cent, want a newly built home. However, most of these buyers will also stay in the home for a longer period of time.

The cost of down payments is also dwindling, as in Ontario 36 per cent of first-time homebuyers intend to put about 20 per cent down, while across the country only 30 per cent of first-time buyers surveyed intend to put down anything higher.

However, the low down payments and wanting more for less shouldn’t be mistaken for haste, as first time home buyers are doing between eight and 10 months of research and shopping in the country’s hottest markets (like Toronto), taking the time to figure out what exactly they can get. Almost 100 per cent of those surveyed had studied their mortgage options and 91 per cent were pre-approved, but interest rates are still a concern for many first-time homebuyers with about 60 per cent worried about still being able to afford payments if interest rates were to rise.

TD Canada Trust does suggest that homeowners spend a bit more time saving up for a larger down payment, but homeowners are on the right track with regards to being prepared for the “hidden” costs of home buying: 88 per cent of those surveyed had calculated all of their closing costs and 85 per cent had figured out their potential utility fees.

What do first-time Toronto homebuyers want? is a post from: Toronto Real Estate Updates

Now that July 1st, 2010 is past, all Toronto real estate buyers and sellers will have to deal with paying the new HST tax when they buy or sell.

But it’s not all bad… for buyers of resale homes, the impact is minimal For sellers the costs will be somewhat higher.

Take a look at this short Real Estate Minute video to get all the answers.

Toronto Home Buyers And Sellers Now Face Additional Closing Costs is a post from: Toronto Real Estate Updates

The past few weeks have seen a balanced real estate resale housing market in the Greater Toronto Area and much of Canada, which typically favours buyers. What does that mean, and why?

Selling or buying in Toronto? Right now, buyers have a bit of an edge. Make it work for you!

Sellers

Sellers may have to work a little bit harder in the coming weeks in order to give buyers what they want because of the balanced market. It also means making sure that the price of a home is suitable for the market, not a bit higher than it should be to see if they can get a little more than it’s worth.

As a seller, working closely with a real estate agent during the process is most beneficial in a balanced market, because a properly staged and represented home is key in order to appeal the most to buyers. Being as accommodating as possible is also important, even going as far as to undergo home inspection and make those repairs yourself.

Buyers

Buyers are the lucky ones and will have more time to fully research the homes and neighbourhoods that are best for them, as well as make their purchase conditional on the results of a home inspection and obtaining proper financing for the value the home is appraised for. Buyers also have the room to make sure their own home is sold in time, and can make their offer to purchase conditional on their home being sold within a certain time frame.

While these options are always available for buyers and sellers to toy with, in this type of market the sellers are more likely to be happy to help you out with your request, giving the buyers the advantage.

So don’t hesitate to discuss your situation with your real estate agent, because they can explain to you where exactly you fit in and what your options are.

Buying Or Selling Real Estate In Toronto? is a post from: Toronto Real Estate Updates

Mortgage rates have dropped to all time lows. What used to be looked at as super low interest rates (in the mid or even low 5s), are now considered high. You may be able to lower your payment by a lot, often with no closing costs. For homeowners that are able to take advantage of the lower rates, this can mean big savings over time. With home prices lower and tougher qualifying requirements, refinancing is tougher than it used to be. But there are still a number of mortgage programs which make it easier to refinance now. One of the easiest and most beneficial loans available is the FHA Streamline Refinance.

FHA Streamline Refinance Loans

The FHA Streamline Refinance loan program is only available if you already have an FHA mortgage on on your home (Refinancing into a new FHA loan can make sense for a lot of other reasons, including adding improvements to your home and being able to use cash out to consolidate debts, but for these you need to do a fully documented mortgage). The advantage of this loan is that you can take on the new lower rates with out having to go through the full qualifying process, you usually don’t need an appraisal (which is a major headache with refinances today) and we can often structure this so you aren’t paying any closing costs (we pay the closing costs with a slightly higher rate). You will need to have some cash at closing to set up the new escrow accounts (to pay for your property taxes and home owners insurance) but you will get whatever money is in your escrow account with your current lender back after closing, so it will end up as a wash. If you have enough equity in the home, you may be able to add the escrows into the loan amount and come to closing with no cash at all, but we would need a new appraisal for this to work.

Here are some of the basic requirements of an FHA streamlined refinance:

• The loan must be FHA insured and you have to have made at least 6 payments on the Loan. If the loan is less than a year old, you can’t have any 30 day or more late payments. If the loan is older you need to be up to date on the payments with no more than one late payment in the last 12 months.
• The refinance has to be for your benefit. We need to lower the payment by at least 5%.
• We need to verify that you have enough cash to close the loan (this means enough money in a bank account to pay for the new escrow account and any other cash you may need).
• We need to show that you are employed and have income coming in. We don’t need to do a full underwriting of your income.
• You may be able to change the loan program (if you have an adjustable rate loan you may be able to go to a fixed rate, and visa versa) but we need to make sure that there is a real benefit attached. If you want to shorten your loan term we may need to do a full qualification.
• You can add a spouse or some one else to title without having to go through the full approval process. If you want to delete a borrower we will need more documentation.

Here is the documentation I will usually need for an FHA Streamline Refinance:

• I will need several items from your closing package, including a copy of our HUD1 closing statement, the Note and it makes it easier if I have a copy of your application.
• A current paystub showing you are employed.
• A bank statement showing you have enough cash to close.
• Proof of your Social Security number – this can either be a copy of your social security card or your W2 from last year.
• A copy of your mortgage statement.
• The name and phone number of your insurance agent.

If you have an FHA loan now, this could be a great way to save money. Give me a call and in a short conversation I can let you know how this will work for you, and put together a written estimate.

Peter Thompson                              630-479-6424

Chicago FHA Mortgage Rates          First time home buyer loans

Chicago Mortgage Company

Free Mortgage Pre-approval

Last week was a quiet week with no major economic reports released and no bombshells dropped. Without much news, the mortgage bond market was most influenced by the direction in the stock market (when there is optimism in stocks, bonds sell off, and visa versa). The stock market has been selling off over the last few weeks as concern mounts that the recovery is stalling out, and major problems are still brewing in Europe. Last week the stock market bounced higher after touching a level of resistance. The question this week is if the rally in stocks has any legs. We are now getting into earnings season, and over the next few weeks all the major companies will release their earnings for the 2nd quarter. Earnings over the last year have come in better than expected, largely as a result of cost cutting. If they are able to extend this streak and some big name companies come in better than expected, this could push stocks higher and as money flows into stocks, bonds suffer which could mean mortgage rates may move higher. Mortgage rates are off their best rates now, and volatility is the norm. But mortgages are still trading in the same range. The big picture is still uncertain, and mortgage bonds are likely to rally at the first hint of bad news (bad news is good news for low mortgage rates). We are still in a historically low range for mortgage rates. If you are thinking about doing a refinance, I would gather up my paperwork and get it into your mortgage loan officer now, and wait for the right time to pull the trigger.

Here are the current Chicago Illinois Home mortgage rates for an A+ (740 Fico or above), full doc single family home purchase or rate/term refinance on a 45 day rate lock, with 0 points, and no origination fee, best FHA rates assume a 660 Fico score, but loans are available with credit scores as low as 620. Mortgage rates in other states may be slightly different, give me a call and I will give you an accurate quote for your particular situation. The conventional and FHA rates are based on the highest conforming loan amounts, which give the best pricing. Again, there are many factors which affect mortgage rates and your ability to be approved for a loan. These rates may not fit your situation and this is just a sample of the programs that are out there. If you would like a quote for your personal situation, or to get pre-approved for a mortgage, give me a call or contact me (Illinois mortgage company) and I will take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

For Jumbo loans over $417,000

*A better option may be to break your Jumbo loan into 2 parts a conventional loan to the limit of $417,000 and a HELOC or fixed second mortgage for the rest. The blended rate is usually much better than a single loan would be, especially for the lower end of the Jumbo range.

** 5-5 ARM is fixed for first 5 years, with 2/6 caps it can’t go more than 2% above the start rate for the next 5 years. 2% cap for next 5 years – so a blended rate over 10 years is no more than 1% over the start rate. Super Jumbles available.

payment FHA Maximum varies by County

FHA APR reflects 3.5% down payment and the effect of mortgage insurance on the loan. Call for information on no-cost FHA streamlined Refinances

FHA 203K Rehab Loans

Call for Quote

VA Veterans Administration 0 Down Loans

Call for information on no-cost VA Streamlined Refinances

Homepath Financing – Call for a personal quote

These are just a few of the mortgage programs and mortgage rates available. Which option is best for you depends on your own specific goals and needs. If you have any questions or want to go over your situation in depth, let me know how I can help.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Company

Foreclosed properties are one of the biggest factors in the real estate market.  Buying a foreclosed home isn’t for everyone, but if you know what you are looking for, you can find bargains. Foreclosures can come form banks, loan servicers and other entities, and the red tape and bureaucracy involved in getting a purchase together and closed, can make it a rough ride. The lenders have a need to sell, but because they are understaffed, and the loan often has to be approved by someone higher up the food chain, you need to have patience and resolve. But some players have moved further along the curve than others, and have come up with more systematic ways of cleaning out their inventory. Fannie Mae, the biggest buyer of loans in the mortgage after market, has 89,000 homes that are now on their books, and they have worked out a system to help buyers find and finance these properties at terms that work for more home buyers. They have developed the Homepath website where buyers can go to find Fannie Mae foreclosed homes, and the Homepath financing program as a way to offer financing with terms that better fit the unique problems of foreclosed homes.

Homepath financing is only available for specific Fannie Mae foreclosed homes, and you don’t have to use the Homepath financing. It makes sense to compare options. Depending on your situation and the condition of the property, other financing may make more sense. But in many cases the Homepath will be the best option, and it will usually be the easiest way to close on the home. These homes are all available for purchase immediately, and though the listing price is set by Fannie and listed through a broker, you can use your own Realtor and negotiate the price and terms, just like any other listing.

Here are some of the advantages of Homepath financing:

• Financing with as little as 3% down for owner occupants.
• Financing for investors with as little as 10% down. (Investors can finance up to 10 properties.)
• No mortgage insurance required (there are price overlays which increase the rate).
• Fixed rates, ARMs and even interest only loans are available (you will need more equity for interest only loans).
• Fannie Mae allows up to 6% for seller concessions (2% for investors) – make this a part of your offer and it will go a long way toward bringing down the interest rate.
• No appraisals are required, you use the sale price as the value.
• Can be used for primary residences, second homes and as investment properties.
• More lenient credit standards than for other conventional mortgages.
• 3% down payment can come from a gift.
• More relaxed condo documentation and approval requirements.

One thing to keep in mind with Homepath, is that the terms are great, but the price can be high. They start with a base price but with overlays (price hits) the actual price may be much higher. One of the keys to this program is that they allow up to 6% in seller concessions – be sure and ask for all you can get when you make the offer.

Here is the website which lets you search for all the properties eligible, you can break it down so by county, town or zip code to see what is in the area you are most interested in -  http://www.homepath.com/. If you want to see how the financing works, and compare it to other options, give me a call and I can tell you what will work out best.

Peter Thompson                             630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Company

Are we different? This recent piece from MSNBC on the differences between the U.S. and Canadian housing markets once again hits on the big question of why did we not experience the housing market crash that the rest of the world (especially the U.S.) did. Are we fundamentally different and insulated from the U.S. housing market? Even more important – moving forward is the Toronto Condo Market at risk of collapse?

Doomsayers like Garth Turner would say that we are exactly the same as the U.S. in that we have lax lending requirements and our own versions of sub prime lenders, and that we are living way beyond our means. Of course, Garth has been saying this for about 3 years now, and written two books about it, and still we are awaiting the big crash that he says is imminent.

Most bankers and economists would tell you that Canada is different because we are more conservative or something like that.

Both sides of the argument to me sound like a whole lot of cliché and not much analysis of the numbers or reasoning behind their statements. Predicting the real estate market beyond the next quarter or so is always a fools’ game. Look at every long-term prediction that has been made by bankers, Realtor associations (like TREB or CREA), economists, and pundits over the past 5 years. One thing they all have in common is that they were all wrong! The best these so called ‘experts’ can do it seems, is tell you that things will be slightly different next year than they were this year.

There is no debate now that the Toronto condo market is losing steam. Listings are up, sales are slowing, prices are weakening. The inevitable questions are now are will it crash? How long will this ‘down market’ last? Isn’t it our inalienable right as Torontonians to always have an upward moving condo market?? But the biggest question is, where do I put my money as an investor? There are good opportunities in every market, including down markets, in which to invest. I’m investing now, and you should too. Contact me if you’d like to discuss.