Nov

Does Where You Live Affect Your Insurance Premium?

by Candace · Filed under Insurance FAQ · 2 Comments

When buying a home, insurance is one of the last items you think about. That’s understandable as it’s probably the least glamorous part of the home buying process. However, there are some things to keep in mind when buying your home that can help keep your insurance prices lower.

Recently we had a couple move to the central part of Phoenix. They bought a home about 50 years old made with block construction. They moved from an 18 year old home made of frame construction in East Mesa. Both homes were about the same size and cost but the premium for their insurance almost doubled. Of course they immediately asked, “Why?”

Here are four key items to keep in mind when buying a home that will influence your home insurance rates.

When building a home a block home is more expensive to replace than a frame stucco home. Their insurance policy had a slightly higher replacement cost because of this. This is obvious because it takes more time and materiel to piece together slump blocks than it would to hammer some nails into 2×4s and throw up some Styrofoam and stucco.

Newer is better. That’s a matter of opinion for many things but insurance companies give discounts for newer homes that are built into the policy. A newer home has newer wiring, heating & cooling, and other important safety features. It’s less likely to have a claims from an older feature built into the home and has been wearing down for 40 years.

Location, location, location. Yes, location plays a factor in pricing of your insurance. One of the big factors in pricing is the zip code you live in. If there was a microburst in your zip code last year which ripped the roof off 50% of the homes, chance are the insurance in that zip code will be much more expensive than in the zip code across the street. Also, does the area have higher crime and vandalism rates than other areas you’re looking at? Again, more claims possibilities.

How does your credit look? While it may not seem fair, your credit history has an enormous impact on insurance rates today. Insurance companies have been tracking this for years and have demonstrated credit scores relate to claim making. The better credit and more ‘financially stable’ you prove to be the more likely you’ll pay your insurance bill and the less likely you’ll file a claim. I’m not going to argue if it’s right or wrong however the longer I’m in the business the more I’m finding it to be true.

Ultimately, my couple was happy with their decision to move. The price on the insurance isn’t generally a deal killer. They’re closer to work and other family members. They have schools for their kids they’re excited about and they love the charm of the home because it’s, “just like where we grew up.” I think you would agree this is more important to buying a home than worrying about the price of the insurance policy.

I didn’t tell you their car insurance went up almost 50% because of the new zip code too. That’s another story.

If you have any questions or concerns and would like a competitive quote on your insurance policies, don’t hesitate to contact me direct at 480.699.7222 or visit my site at www.InsuranceRenegade.com

Nov

Thinking Of Buying A House? The Trend Is Your Friend

by Justin · Filed under Mortgage FAQ · Leave a Comment

Only a few years ago, I was sitting in an advanced capital markets finance class in graduate school learning such fun things as the basics of calculating beta for a particular stock, calculating the weighted cost of capital, hurdle rates, or a handful of other very-boring topics that have virtually nothing to do with my daily life now.

I did however, learn one very valuable lesson in that class – one that is very relevant to my everyday life now as I talk with people about whether or not it is a good time to buy a house. The valuable lesson I learned in that class?

“Don’t fight the trend. The trend is your friend.”

Two trends that I see happening that will have a direct impact on the prices of homes and mortgage interest rates are:

Lenders are becoming more flexible at working with borrowers on solutions other than foreclosures
The government is doing everything in it’s power to keep interest rates low

Lenders Are Working Out Solutions Other Than Foreclosure

It has recently been announced that Fannie Mae and Freddie Mac will accelerate anti-foreclosure efforts by streamlining loan modifications to lower monthly payments for more struggling homeowners.

They are targeting loans where borrowers are at least 90 days delinquent and have high loan-to-income ratios and are offering things including reduced interest rates and longer terms of as much as 40 years to trim monthly payments.

The Government Is Doing Everything Possible To Keep Interest Rates Low

It was announced this morning that the Federal Reserve is committing a massive amount of money in an attempt to unfreeze the credit markets. This $800 billion is in addition to the $700 billion “bailout” package known as the Troubled Asset Relief Program (TARP) that was announced by the Treasury department in early October.

According to the announcement this morning, the Federal Reserve will purchase up to $100 billion in direct debt of Fannie Mae, Freddie Mac and the Federal Home Loan Banks and up to $500 billion of mortgage-backed securities backed by Fannie, Freddie and Ginnie Mae.

“This action is being taken to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved conditions in financial markets more generally,” the Fed said.

What This All Means If You Are Looking To Buy A Home Now

Since I am not exactly in the business of predicting the future – and I *for sure* do not want to go on record as saying that interest rates are only going to go lower and median house prices are only going to go up from this point, I will simply add this:

With lenders doing more to stop foreclosures and the government doing more to drive interest rates lower, it seems to make macro sense that the trend we have seen over the last couple of years may have turned or may be turning reasonably soon.

And remember — “The Trend Is Your Friend!”

Arizona Mortgage Rates For November 25, 2008

Nov

How Do I Know If I’m Ready To Buy A Home?

by Candace · Filed under Real Estate FAQ · 4 Comments

A home is a financial asset, a place to live and perhaps raise a family; it’s a plan for the future; it’s an opportunity to build equity, an investment in your community. The benefits are real and have been proven, if done wisely. Choosing the best home insurance plan for it comes next.

chartweb Having enjoyed the benefits of owning several homes in Arizona has afforded me firsthand knowledge to guide a first time buyer. Having sold many homes to my clients, I come prepared to guide you every step of the way. This is one of the reasons I enjoy working as a buyer’s representative and enjoy working with first time buyers and helping them seek out their dream home. I equally enjoy the satisfaction of helping them meet their goals and finding the perfect home for their family. Negotiating the best price, best deal and have you fall in love all over again.

Once determining your financing terms and we have found your home, the offer is negotiated, contract is executed and closed, you will enjoy the opportunity to take advantage of the benefits of home ownership.

If you haven’t owned a home in the past or ever owned a home in Arizona, then this series of post questions to follow will help you through the early, middle and finishing stages of the home buying process.

The first question you should ask yourself is, ‘How do I know if I’m ready to buy a home?’

For starters you might want to ask yourself these questions:

Do I have a steady source of income (usually a job)?
Have I been employed on a regular basis for the last 2 years?
Is my current income reliable?
Do I have a good record of paying my bills?
Do I have few outstanding long-term debts, like car payments?
Do I have money saved for a down payment?
Do I have the ability to pay a mortgage every month, plus additional costs?

If you can answer yes to these questions, then you probably are closer to home ownership than you think!

If you would like to see if you have the ability to qualify based on your debt to ratio income, I can certainly provide a reliable lender that can assist you with pre-qualifying you with NO Obligation.

In the meantime, feel free to browse my Phoenix Home Search for your new home!

If you are looking for information on buying Arizona Homes for Sale give me a call at (480) 202-3558 – It’s a great place to live, work and play! Arizona offers so many indoor and outdoor activities.

Nov

What is a Loan Modification?

by Justin · Filed under Mortgage FAQ · Leave a Comment

Recently, we were asked by local morning talk-radio superstar Darrell Ankarlo at KTAR to be on his show and to briefly talk about the most recent proposal by the FDIC to encourage lenders to modify people’s mortgage loans by guaranteeing against some of the losses.

We noticed a theme among those people who called in: many of them were NOT currently late on their mortgage, but were about to be late on their mortgage due to some kind of hardship. Overall, their questions could be summed up as:

“I am not currently late on my mortgage, but I am not going to be able to continue to make it — what do I do?”

My answer in each case was “make sure that you call your lender and speak with them about your situation and start talking to them about a possible loan modification — where they will modify the terms of your loan to make it more affordable. If you called them last week and they told you that they couldn’t help you, try back again this week. And then next week.”

Why would we encourage people who are struggling to make their payment to call their lender after their lender recently told them that they couldn’t help them?

Because the general attitude is changing (sometimes daily) toward loan modifications and what banks are willing to do. This will even change more dramatically if the FDIC passes their proposed plan.

So if you find yourself having trouble making your mortgage payment, be sure to call your lender. And if your lender tells you that they cannot help you?

Call again next week.

And the week after that.

Listen to the full 18 minute conversation with Darrell Ankarlo.

Mortgage Rates for November 18, 2008

Nov

Pre-foreclosure or Bank Owned Homes in San Tan Heights and Skyline Ranch

by Candace · Filed under Featured Homes · 1 Comment

The rural lifestyle awaits you in one of the shining secrets of Arizona. Queen Creek offers residents over 330 sunny, beautiful days each year and a stunning climate. With the great climate and the welcoming neighbors, it’s no wonder why so many relocate to Queen Creek in attempt to try out small town life. Queen Creek is home to just over 20,000 residents that appreciate the rural benefits of this small town. The city offers a low crime rate, good schools, and a high quality of living that includes plenty of health benefits through the high air quality and the care that is taken to improve the area for the residents and their well being.

Offering such activities as horseback riding and hiking, Queen Creek is perfect for people who love outdoor activities. The community center and the local parks give residents the chance to play sports, such as basketball, tennis, baseball, and volleyball. Queen Creek is also home to four golf courses. This town is just minutes from numerous big cities, which puts residents within a short drive of several popular amenities and attractions, including one of the country’s largest shopping malls.

Schnepf Farms – a family operated farm that holds frequent festivals.
The Queen Creek Performing Arts Center
Horseshoe Park – a large, publicly owned and operated equestrian facility that will hold regional events. Currently under construction but scheduled to be completed fall 2008.
Queen Creek Library – the newest branch of the Maricopa County Library District that opened November 8, 2008.
Barney Family Sports Complex – a privately owned and operated indoor sports facility. To be completed fall 2008.

Below are some statistics for the map area below for single family detached homes in San Tan Heights and Skyline Ranch in Queen Creek, Arizona that are Pre-Foreclosure, Bank or Lender Owned. Only mappable properties with valid prices and home sizes are included in these calculations. Statistics were taken on available homes on November 16, 2008, they are subject to change.

Prices

Average: $127,341

Median: $110,000

Median: $57 / sq ft

Lowest: $75,000

Highest: $350,000

Lot Sizes

Average: 7,669 sq ft

Median: 7,500 sq ft

Smallest: 7,500 sq ft

Largest: 15,000 sq ft

Home Sizes

Average: 2,039 sq ft

Median: 1,928 sq ft

Smallest: 1,115 sq ft

Largest: 3,556 sq ft

List of available homes in pre-foreclosure and/or bank owned in San Tan Heights, Skyline Ranch in Queen Creek, Arizona below:

$99,000 :: 3658 W Goldmine Mountain Drive, Queen Creek AZ, 85242 -

4 beds, 2 baths
Size: 1,742 sq ft
Lot Size: 7,500 sq ft
Added: 05/20/09, Last Updated: 07/03/09
Property Type: Single Family - Detached, Residential
MLS Number: 4176941
Tract: San Tan Heights

Charming home in San Tan Heights. Bright & open great room floorplan. Large 20'' diagonal tile in all the right places. 2'' blinds throughout. Vaulted ceilings lend an air of spaciousness. The kitchen boasts 42'' staggered cabinets with crown molding, tons of counterspace, stainless appliances, pantry, dining area, and large island with breakfast bar. The split master features double sinks and walk-in closet. The North-facing backyard offers a grassy area and covered patio.Listed with RE/MAX Power Realty