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May 12th, 2010Categories: Georgia Mountain Real Estate VIEWS

Relocate America recently released its 2010 list of Top 100 Places To Live In America. The rankings are topped by some cities you may expect, and some you may not.

According to Relocate America, the rankings highlight communities “moving in the right direction”, defined as having a combination of strong leadership, job opportunities, improving real estate markets, recreational options and a good quality of life.

It’s not a bad formula and topping the list of Top 100 Places To Live In America is Huntsville, Alabama.  Huntsville was chosen for its low levels of unemployment, stable housing stock, and low cost of living.  Last year, Huntsville placed fifth on the Relocate America list.

The Top 10 cities in which to live, as selected by Relocate America are:

1. Huntsville, AL
2. Washington, DC
3. Austin, TX
4. San Diego, CA
5. San Antonio, TX
6. Tulsa, OK
7. Charlotte, NC
8. Raleigh, NC
9. Boulder, CO
10. Minneapolis, MN

View the complete Top 100 Places To Live In America 2010 list at the Relocate America website.

Now I may be a little biased, well actually I am very much biased, but these beautiful North Georgia Mountains are an absolute GREAT place to live! I feel that we should be at the top of the list. Here is a great article in the AJC about a Road Trip to Blairsville, GA. Keep in mind that Union County has the 3rd lowest taxes in the State of Georgia.

Tags: Blairsville, Georgia, mountains, Rankings, Relocate America, United States

Written by Chad Lariscy//Discussion: Please leave a comment.

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March 25th, 2010Categories: Mortgage & Finance reVIEWS

April 15 is Tax Day and the IRS estimates that the average U.S. household will receive a $2,800 tax refund this year.  If you’re among the Americans expecting a refund, this 4-minute piece from NBC’s The Today Show may be helpful. It’s a talk about how to receive a refund and what to do with it.

Some of the key points discussed include:

1. Why state-issued tax refunds may be delayed this year

2. How wage-earning people can claim their “Making Work Pay” tax credit of up to $800

3. How to direct a tax refund to a 529 college savings plan for an even bigger tax refund

There’s also some sensible pointers on using tax refunds to pay down credit card debt, and to fund retirement plans, among other purposes.

If you haven’t started your tax planning yet, try to avoid leaving it for the last weekend.  Not only will your tax preparer have more time for you now, but you’ll leave yourself more time to track down important statements and receipts that can boost your federal and state tax deductions.

Taxes are due in 21 days!

Tags: Internal Revenue Service, IRS, NBC The Today Show, Tax Day, Tax refund, United States

Written by Chad Lariscy//Discussion: Please leave a comment.

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February 9th, 2010Categories: Georgia Mountain Real Estate VIEWS

The economy’s improving but lending standards are not. Nationally, banks are making mortgage approvals harder to come by.

Underwriting guidelines are tightening.

The data comes from the Federal Reserve’s quarterly survey to its member banks.  The Fed asks senior bank loan officers around the country to report on “prime” residential mortgage guidelines over the most recent 3 months and whether they’ve tightened.

For the period October-December 2009:

• Roughly 1 in 4 banks said guidelines tightened
• Roughly 3 in 4 banks said guidelines were “basically unchanged”

Just 2 of 53 banks said its guidelines had loosened.

Combine the Fed’s survey with recent underwriting updates from the FHA and generally tougher standards for conventional loans and it’s clear that lenders are much more cautious about their loans than they were, say, in 2007.

Today’s Blairsville home buyers and would-be refinancers face a bevy of new borrowing hurdles including:

• Higher minimum FICO scores
• Larger downpayment requirements for purchases
• Larger equity positions for refinances
• Lower debt-to-income ratios

So, if you’re on the fence about whether now is a good time to buy a home, or make that refi, consider acting sooner rather than later.  It doesn’t necessarily matter that mortgage rates are low, or that there’s an up-to-$8,000 home purchase tax credit for households that qualify.  With each passing quarter, fewer and fewer applicants are eligible to take advantage.

Tags: Bank, Business, Credit, Federal Housing Administration, Loan, Mortgage, Mortgage Guidelines, Tax Credit, Underwriting, United States

Written by Chad Lariscy//Discussion: Please leave a comment.

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January 13th, 2010Categories: Georgia Mountain Real Estate VIEWS, Mortgage & Finance reVIEWS

As the housing market improves across the country, certain cities are emerging as relative bargains.  Some areas, like Miami, were hit hard by the recession, and other areas are buoyed by good school systems and strong labor markets.

In this 5-minute video from The Today Show, 10 cities are highlighted for their home prices.  And they’re not “small towns”, either.

Among the featured cities:

1. Miami, Florida

2. Akron, Ohio

3. Tuscon, Arizona

4. Minneapolis, Minnesota

5. Trenton, New Jersey

Now, this piece is about finding gems on a national scale.  They exist locally here in Blue Ridge, Blairsville, Ellijay and all over the North Georgia Mountains too.  You just need to know what to look for.

With mortgage rates low and tax credits available, it’s not likely that bargains will last.

Tags: Add new tag, Bargains, Mortgage, Tax Credit, The Today Show, U.S. Housing Market, United States

Written by Chad Lariscy//Discussion: 1 Comment »

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January 12th, 2010Categories: Mortgage & Finance reVIEWS

Despite the headlines, it’s important to remember that December’s jobs report wasn’t all bad news.

Sure, the economy shed 85,000 jobs last month and the Unemployment Rate failed to dip below 10%, but for home buyers and rate shoppers in the North Georgia Mountains , the news was just fine.

The soft employment data led mortgage rates lower, making homes more affordable for buyers.

There is two sides to every economic coin.

Since early-2008, the U.S workforce has been closely tied to home financing. As the economy slowed and jobs were lost, Wall Streeters pulled money from the risky stock markets and moved it to of the relative safety of bond markets, instead.

Safe haven buying led mortgage bond prices higher which, in turn, caused rates to fall. Mortgage rates fell to 6 all-time lows in 2009. In a related statistic, 4.2 million jobs were lost last year.

And this is why Friday’s non-farm payrolls report was so good for buyers.

See, in November, the economy added new jobs for the first time since 2007, housing looked strong, consumer confidence was growing.  The safe haven buying reversed and mortgage rates took off.  Analysts believed the nation’s economic turnaround was complete.

But now, after December’s jobs report returned to the red, Wall Street is forced to rethink its position. Safe haven buying is back and mortgage rates are lower because of it.

Over the next few months, expect a lot of this back-and-forth action in rates. In general, positive news for the economy will be met with higher mortgage rates and negative economic news will be met with lower mortgage rates.  There will be exceptions, but the general rule should hold.

Tags: Add new tag, Business, Economy, Employment, Home Affordability, Mortgage, Mortgage Rates, Non-Farm Payrolls, Stock market, Unemployment, United States, Wall Street

Written by Chad Lariscy//Discussion: Please leave a comment.

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January 8th, 2010Categories: Mortgage & Finance reVIEWS

FHA home loans are federal assistance mortgages made by lenders, and backed by the government. The FHA doesn’t make loans to Georgia homeowners — it insures loans made to Georgia homeowners by federally-qualified lenders.

By all accounts, FHA home loans are surging in popularity.

• 2006, FHA insured 3.3% of all mortgages made
• Q2 2009, FHA insured 19.2% of all mortgages made

A major reason for the increase can be tied to guidelines.

As compared to its conforming mortgage cousins Fannie Mae and Freddie Mac, FHA home loans have lower down payment requirements and lower credit standards. The FHA allows down payments of 3.5 percent for homes in Blue Ridge and Blairsville, GA.  and Fannie Mae and Freddie Mac do not, as an example.

Another reason is that FHA home loans aren’t subject to credit score fees the way that conforming mortgages are. Through Fannie or Freddie, a home buyer with a 650 FICO and 20% down is subject to 3% in risk fees.  Via the FHA, the fee is zero, making FHA the better “deal”.

The FHA published its 2010 loan limits. There’s no change from 2009.

The base 2010 FHA loan limits are:

• 1-unit : $271,050
• 2-unit : $347,000
• 3-unit : $419,400
• 4-unit : $521,250

We say “base” because these loan limits don’t apply to all areas equally.  Higher-cost regions get higher loan limits, based on typical home values. Homes in Los Angeles County, for example, can be FHA-insured up to $729,750 in 2010, and there are special exceptions made for Alaska and Hawaii.

The official FHA announcement included a complete, county-by-county FHA loan limit list. The first spreadsheet shows each county at or above the $729,750 maximum; the second list is everyone else.

If your home’s county is on neither list, use the “base” numbers above.

Tags: Add new tag, Business, Fannie Mae, FHA, FHA loan, Financial Services, Freddie Mac, High-Cost Areas, Loan, Loan Limits, Mortgage, United States

Written by Chad Lariscy//Discussion: Please leave a comment.

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January 5th, 2010Categories: Georgia Mountain Market reVIEWS, Georgia Mountain Real Estate VIEWS, Mortgage & Finance reVIEWS

2010 is just a few days old and already the “experts” are making predictions for the year.

Housing calls and mortgage rate predictions run the gamut:

• Home prices will fall in 2010
• Home prices will rise in 2010
• Mortgage rates will rise in 2010
• Mortgage rates will rise by a lot in 2010

Given how varied their outlooks, it’s clear that the professionals have no better view of the future than the amateurs. An expert can make an educated guess, but it’s a guess nonetheless.

Last year, Wall Streeters predicted a 25% pullback in home prices. 12 months later, we know prices didn’t fall.  Wall Street also predicted higher mortgage rates for 2009. That prediction was fulfilled.

There’s a lot of talk on CNBC and elsewhere about what’s coming in 2010. Before you take those predictions to the bank, just remember that analysts do a much better job interpreting data from the past than projecting it into the future.

The only thing that’s certain right now is that mortgage rates are historically low, the government is giving tax credits to qualified buyers, and there’s a lot of good “deals” in housing. Make the most of what’s out there today because it will take 12 months for us to look back and know which predictions were right and which were wrong.

Until then, predictions are just opinions and guesses.

Tags: Add new tag, Business, Financial Services, Government, Market Predictions, Mortgage, Real estate pricing, Tax Credit, United States, Wall Street

Written by Chad Lariscy//Discussion: Please leave a comment.

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December 8th, 2009Categories: Mortgage & Finance reVIEWS

How Do I Increase My 2009 Mortgage Interest Tax Deduction?

For many American homeowners, interest paid on a mortgage is tax-deductible in the year in which it was paid.

Knowing that, eligible homeowners can increase their 2009 tax deductions just by making their January 2010 mortgage payment before the end of the year.

By paying in 2009, the mortgage interest paid can be applied against 2009′s itemized tax deductions even though the payment isn’t technically due until 2010.

It can reduce your tax burden come Thursday, April 15, 2010.

And lest you think you’re paying the mortgage “in advance”, remember that mortgage interest is paid in arrears; a payment due January 1 accounts for interest that accumulated in December 2009 anyway.

Tax planning is a complicated issue and not all homeowners qualify for mortgage interest tax deductions. Check with your tax professional before making tax planning decisions.

If you don’t have an accountant you trust, call or email me anytime; I’m happy to make a recommendation to you.

Tags: Accounting, Business, Itemized deduction, Mortgage, Tax, Tax deduction, Taxation, United States

Written by Chad Lariscy//Discussion: Please leave a comment.

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December 5th, 2009Categories: Mortgage & Finance reVIEWS

Should I Consider A 15-Year Fixed Mortgage?

For today’s home buyers and homeowners that can manage the higher monthly payments, 15-year fixed rate mortgage rates look attractive as compared to comparable 30-year products.

The 15-year/30-year interest rate spread is near its 5-year high.

Despite lower rates, however, homeowners opting for a 15-year fixed mortgage should be prepared for its higher monthly payments.  This is because the principal balance of a 15-year fixed is repaid in half the years as with a standard, 30-year amortizing product.

As compared to 30-year terms, 15-year products repay 3 times as much principal each month.

Versus a 30-year, 15-year fixed mortgages have a few downsides worth noting.  The first is that, because 15-year mortgages are heavy on principal and light on interest, homeowners who itemize tax returns may have to claim a smaller mortgage interest tax deduction at tax time.

Another negative is that the sheer size of the payment.  If you run into fiscal trouble down the road, the only way to reduce the monthly obligation is to refinance into a 30-year product and that costs money to do.

In other words, be sure you can manage the payments over the long-term before you opt for a 15-year term.   If you can manage it, though, the rewards are tangible.

At today’s rates, a 15-year fixed and 30-year fixed costs $230 extra per $100,000 borrowed.

Tags: Business, Financial Services, Fixed rate mortgage, Interest rate, Mortgage, Refinancing, Tax, United States

Written by Chad Lariscy//Discussion: Please leave a comment.

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December 4th, 2009Categories: Mortgage & Finance reVIEWS

As Unemployment Rates Fall, Mortgage Rates Rise

This morning’s jobs report is causing mortgage rates to rise, capping a week during which rates have already jumped 3/8 percent off all-time lows.

The government’s November Non-Farm Payrolls report reinforced the notion that the recession is nearly over, if not over already.

Just 11,000 jobs were lost last month — much fewer than analysts had expected — as the Unemployment Rate fell to 10.0%.

If it seems strange to be talking economic recovery while Americans are still losing jobs – 7.2 million since 2008 –  remember that data always needs context.

See, analysts view employment figures as a lagging indicator for the economy.  This is because business owners tend to make hiring decisions based on how business has been – not on how it will be at some point in the future.

The jobs report rarely reflects the “right now”.  As an example, job loss peaked in January 2009 – 4 months after the height of the financial crisis.

We saw the same pattern during the Recession of 2001.

According to government data, during the last recession, job loss peaked in October 2001 but the recession ended the very next month.  It wasn’t until October 2002 that employment went net positive on a monthly basis.

And this is why investors are cheering November’s jobs report. Better-than-expected numbers and a falling Unemployment Rate show that the economy is improving.

Unfortunately for rate shoppers, better-than-expected data is pushing mortgage rates higher.  Rates are expected to open 0.250% higher versus yesterday’s close.

Tags: Business, Economy, Employment, Financial crisis, Government, Recession, Unemployment, United States

Written by Chad Lariscy//Discussion: Please leave a comment.

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