Louisville Properties Blog
Louisville Properties Blog

Home Loans

Decline in Home Sales Blamed on Mortgage Delays

The National Association of Realtors claims that uncertainties about a federal flood insurance program and delays in mortgage applications contributed to the dip in existing home sales in May. The association reported that there were 5.66 million existing home sales across the country in May, down from April's 5.79 million and far short of analysts' estimates of 6.12 million. While the numbers disappointed industry analysts, May's existing home sales did show a year-over-year improvement of 19 percent over May 2009. Lawrence Yun, the realtor association's chief economist, speculated that May's home sales received a boost from the expiring home buyer tax credit, and he did not expect that June's home sales would reflect a similar year-over-year improvement. "We are witnessing the ongoing effects of the home buyer tax credit, which we will also see in June real estate closings," Mr. Yun said. "However, approximately 180,000 home buyers who signed a contract in good faith to receive the tax credit may not be able to finalize by the end of June due to delays in the mortgage process, particularly for short sales." Congress failed to extend the country's flood insurance program before it recessed in March, causing its suspension until President Obama signed a temporary extension until May 31. This may have had an impact on home sales as lenders require flood insurance before they will provide mortgages for homes in flood-prone areas. Lenders require the owners of more than one-third of homes in Florida and Louisiana to carry flood insurance before they will provide mortgages. If you're one of the flood of people thinking of buying Louisville homes, but are frustrated by limited listings on other sites, we invite you to grab a cup of coffee and view the Louisville homes for sale on our site. We have the area's best selection of Louisville homes and provide a wide range of services for buyers and sellers. Call us today at 502.744.9504 for more information! Resource link:...

Bank of America Reduces Mortgage Balances

It comes much too late for many people who have lost their homes in foreclosure, but is welcome news for many homeowners struggling to hold onto their homes. Bank of America announced recently that it has started to forgive some mortgage debt to help stressed homeowners keep their homes and avoid bankruptcy. If Bank of America is your mortgage lender, don't pick up the phone yet because participation in the program is by invitation only. The Obama administration and Congress have been urging lenders to loosen lending to stimulate the economy and provide a much-needed lifeline to prospective homebuyers who are having difficulty getting home financing. It remains to be seen whether the BoA program will inspire other lenders to launch similar programs to help distressed homeowners. After a brief surge in home sales last summer and fall largely attributed to the government's popular homebuyer tax credit program, home sales and selling prices are down again in most markets across the country. The new program has angered many homeowners who have kept up with their payments and have been trying to refinance their mortgages to save money, but have had little success due to tight lending practices. The timing of BoA's announcement just happened to coincide with the news that it had reached a settlement with the State of Massachusetts over predatory lending claims. While Bank of America's reputation may be bruised, if you're looking for homes for sale in Louisville, Louisville Properties has an excellent reputation for good business practices and exceptional customer service. This Louisville realtor has been helping people buy and sell homes, commercial real estate and other properties in the area for years. To speak with Jim Powell, an experienced Louisville real estate agent, call him today at 502.744.9504. Resource Links: http://www.latimes.com/business/custom/yourmoney/la-fi-harney28-2010mar28,0,26637.story...

Refinancing Your Home

If you're thinking about refinancing your home, it can save many thousands of dollars over the life of a mortgage; however, home refinancing is not without peril. You have to be willing to make a sober assessment of your financial situation and conduct your own research before making the decision to refinance (refi) your home. There are potential pitfalls to a refi if you aren't careful. An old and enduring rule about refinancing says that it only makes sense to refi if you can shave two percentage points off your current interest rate. A lower interest rate is certainly helpful, but your prevailing concern should be how long it takes to break even on a refi. For instance, when closing on a home, there are usually points paid on a refinance. If you don't plan to stay in the home long enough to realize the savings, a refinance does not make financial sense for you. Next, make sure the new mortgage will actually save you money. For example, a mortgage with a variable interest rate for 15 years instead of 30 years might sound attractive initially. However, when interest rates go up, so will your monthly payment. Mortgages for shorter periods of time can save you a ton of money over time, but make sure that you can comfortably afford the higher monthly payments. It's a good idea to shop around with different lenders to see which offer the most favorable terms. While it may be more convenient to refinance through the lender that issued the mortgage since they have all the documentation, shopping around for the best rates is smart money management. Most of all don't be afraid to ask tough questions when refinancing your home. Driving a hard bargain might inspire the loan officer to shave a few more points off the interest rate in order to make the deal! If you are looking to buy or sell Louisville Real Estate, Louisville Properties can help.  Please contact us and 502-744-9504 today. ...
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