Casey's Corner | Serving North County Real Estate Blog by Casey Cooke

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When is it a smart decision to refinance again?

said on May 11th, 2012 filed under: Buyers, Casey's Corner, Market Trends

What a crazy market we are in huh? You refinance to 5.5% and then rates drop lower? Then even lower?

A common question I get is when should you look at refinancing again?

Those who refinanced their mortgages a year or so ago, when interest rates averaged just below 5 percent for a 30-year fixed-rate loan, may already be wondering whether it’s time to refinance yet again now that rates are at least a full percentage point lower.

7 Ways to Stage your Home for Maximum Value Here!

Below are a few tips offered by the NY Times you should consider. My advice is pretty straightforward. Call a mortgage professional like my friend Andre Kwan at Prime Lending (619) 623-9393 and have him run the numbers. Compare you current payment to your new payment to see how much you could save. Then from there figure out how much that refinance is going to cost you in closing costs. Figure out how many months at the lower payment you need to stay in the home to recoup the cost. Anything you save after that is pure savings. Now you also need to realize that when you refinance you are starting at the very beginning of your loan amortization(paying nearly all interest) and you start a fresh 30 year term, so you want to keep that in mind. Also, rates are so good right now that you may want to look at a 15 year loan instead of a 30 year. You may be able to keep you payment about the same but pay it off in half the time. For some that may be a very smart decision!

Here are those tips and a link to the whole story, let me know what you think!

As of Thursday 5/10/12, according to Freddie Mac’s weekly survey, the average rate on a 30-year loan was 3.83 percent, down from 4.63 percent a year ago, setting a record low.

According to financial planners, homeowners considering refinancing first should delve into their financial goals, specifically the length of time they plan to live in the home.

Short Sales Explained Here!

Some homeowners decide it makes more sense to stay with their current mortgage, especially if the savings are small or they plan to move within a year or two. According to one financial planner, when homeowners refinance, they’re not building equity; they’re starting at the beginning of the amortization tables.

Amortization schedules work like this: In the first few years, almost all of the payment goes toward interest, so the longer the homeowner has the loan, the more is put toward the principal.

Those who refinanced in the last year or two don’t have to consider amortization tables, but they do need to know their equity position – and when refinancing would begin to pay off.

To calculate that, start with a rundown of all the closing costs, then divide the closing costs by the amount expected to be saved on each monthly payment.

Depending on the lender, most homeowners likely need to have at least 20 percent equity, and maybe a little more, if they want to wrap closing costs into the new mortgage.

You can check out the full story by clicking here!

Thanks for reading!

Thinking of selling your North County Home?

I earned my spot as the #1 overall agent AND the top listing agent at Coldwell Banker Vista Village for 2011 by listing more homes for sale than any other agent in my office.

My team of experienced professionals can help you whether in Carlsbad, Vista, Oceanside, San Marcos, Escondido, or elsewhere in North County. I have a very detailed, written marketing plan designed to drive more traffic to your home and get it SOLD quickly, and for top dollar with minimal stress and hassle.

Call me directly at 760-216-6604 or email me at Casey@CaseyCooke.com.

When we talk, I will explain the process in detail and answer any questions you may have.

Thank you for reading this, I hope I have been helpful!

Casey Cooke is a licensed Real Estate agent at Coldwell Banker in Vista Village and was the overall #1 agent for 2011

License#01845539

Phone (760)216-6604

Casey@CaseyCooke.com

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Most Americans beleive rents AND home prices are set to rise…

said on April 11th, 2012 filed under: Buyers, Casey's Corner, Market Trends, Sellers

This is from Fannie Mae’s Quarterly National Housing Survey they issue every ninety days. Fannie Mae also does a monthly survey covering different aspects of the housing market.

Here are some record numbers we found interesting in Fannie Mae’s March report.

1. Thirty-three percent of respondents expect home prices to increase over the next 12 months, the highest level over the past 12 months.
2. The percentage of respondents who say it is a good time to buy rose to 73 percent, the highest level in over a year.
3. Forty-eight percent of respondents think that home rental prices will go up, the highest number recorded to date.
4. On average, respondents expect home rental prices to increase by 4.1 percent over the next 12 months, the highest number recorded to date.

Doug Duncan, chief economist of Fannie Mae, capped the report off by stating:

“Conditions are coming together to encourage people to want to buy homes. Americans’ rental price expectations for the next year continue to rise, reaching their record high level for our survey this month. With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that homeownership is a more compelling housing choice.”

I have been saying it for quite some time now and it appears the rest of the country is falling in line. 2012 is the BEST year to buy we have seen in quite some time. I beleive at the entry level in San Diego we have hit bottom and will bounce along there for quite some time. The upper end still has some falling to do since the “move up” buyers are gone, but the entry level market is robust with buyers and the mid- tiered homes are moving as well.

If you are thinking about selling and have been sitting on the fence, now may be the time to get off that fence while the spring market is upon us.

If you have been thinking about buying now is a great time to take advantage of pricing we have not seen in years and record low interest rates.

Thank you very much for reading my blog! I hope you found it helpful. If you enjoyed reading this, please let me know by adding a comment below or sending me an email. If you have any additional questions please submit those as well and you may see them on a future blog post.

Here are a few additional articles you may find useful!

1. Free help for people in Foreclosure! Click here for some great resources.

2. 5 tips for checking out a neighborhood before you buy!

3. How does a mortgage application effect your credit score?

Thinking of selling your North County Home? My team of experienced professionals can help you whether in Carlsbad, Vista, Oceanside, San Marcos, Escondido, or elsewhere in North County. We specialize is helping sellers sell their North County homes for top dollar with minimal stress and hassle. Call me directly at 760-216-6604 or email me at Casey@CaseyCooke.com.

When we talk, I will explain the process in detail and answer any questions you may have about the process.

Thank you for reading this, I hope I have been helpful!

Casey Cooke is a licensed Real Estate agent at Coldwell Banker in Vista Village, License#01845539.Phone (760)216-6604 . Casey@CaseyCooke.com

said by Casey Cooke Leave A Comment

Am I a Real Estate Expert?

said on April 10th, 2012 filed under: Casey's Corner, Casey's Take, Sellers

I often get asked the question, am I an “expert” in Real Estate?

Or would I consider myself an “expert” in a certain field of real estate, such as listing homes or short sales? Or a certain neighborhood? I saw this post and thought I would share it.

What exactly does it mean to be an expert? Does that mean we should know everything there is to know about Real Estate? I had a client tell me last year that I was like a “Real Estate Encyclopedia”. I completed two very difficult sales for him and he had lots of questions for me.

Either way, if you are buying or selling a home in today’s market, you need a real estate expert. However, we must realize what the term ‘expert’ actually means. An expert in any area cannot give perfect advice as no one can predict the future.

But they can give excellent advice based on their insight into their field.

If you go to an attorney with a legal challenge, he/she will look over your case and give you your options. They realize they cannot guarantee the outcome of any of the options. Still, they give the best advice possible and allow you to decide the option with which you feel most comfortable. They then will put together a strategy which hopefully will bring about the most favorable conclusion.

If you go to a doctor with a serious ailment, he/she will give you your options and work with you to develop the best treatment program. They cannot guarantee any program’s success. They will, however, monitor your progress and adjust your treatments or medications. They will stand next to you until the best result is achieved.

Real estate is no different. A true real estate professional will understand your options and simply and effectively explain them to you and your family. Once you chose an option, they will strategize a plan to help you accomplish your goals. They will standby you as the process evolves and will help you make the necessary adjustments if necessary.

They cannot see the future any better than doctors or attorneys and thus their advice will never be perfect. However, just like those other professionals, an expert agent will give you excellent advice that will bring about the best possible outcome.

This post appealed to me because this is exactly how I approach my job. I have a vast amount of transactional experience to draw from which means I have experienced most scenarios before. I also have an ongoing appetite for education and I regularly attend seminars and training events. This means I can sit down with my clients, learn what they are trying to accomplish, then give them a list of possible actions and outcomes. This means I can predict with a high degree of accuracy which course of action may be the best.

Does this make me a “Real Estate Expert”? Absolutely. ;~)

Here are a few additional articles you may find useful!

1. 7 Ways to get TOP value for YOUR home!

2. Using comparable values to price your home correctly

3. What is a “Strategic Default?”

When we talk, I will explain the process in detail and answer any questions you may have about the process.

Thank you for reading this, I hope I have been helpful!

Casey Cooke is a licensed Real Estate agent at Coldwell Banker in Vista Village, License#01845539.Phone (760)216-6604. Casey@CaseyCooke.com

said by Casey Cooke Leave A Comment

Weichert Named Among Most Influential Real Estate Leaders in 2010

said on January 21st, 2011 filed under: Casey's Corner

MORRIS PLAINS, N.J. – Jim Weichert, founder and president of Weichert, Realtors®, has been selected for the Inman News list of the ‘100 Most Influential Real Estate Leaders’ for 2010.

This year’s selection is the fourth consecutive year that Weichert was honored with this celebrated distinction.

Jim Weichert was recognized in the ‘Brokerage’ category, which is reserved for company leaders who command the attention of real estate professionals through their words and actions. During his more than 40 years of sales experience, Weichert has led the development of Weichert, Realtors from a single office in 1969 to one of the largest privately held real estate companies in the nation.

Inman News is one of the nation’s leading independent real estate news services. The Inman 100, an annual list of the 100 Most Influential People in Real Estate, recognizes those power brokers, thought leaders, experts, insiders, and visionaries who influence the real estate industry with their words, actions, insight and innovations.

Weichert has nearly 18,000 sales associates in more than 500 company-owned and franchised sales offices in key markets throughout the U.S. A family of full-service real estate and financial services companies, Weichert helps customers buy and sell both residential and commercial real estate, and streamlines the delivery of mortgages and home and title insurance. For more information, Weichert’s customer service center can be reached at 1-800-USA-SOLD or at Weichert’s Web site, www.weichert.com. Each Weichert franchised office is independently owned and operated.

Thank you very much for reading my blog!

Thinking of selling or buying a North County Home? My team of experienced professionals can help you whether in Carlsbad, Vista, Oceanside, San Marcos, Escondido, or elsewhere in North County. We specialize is helping sellers sell their North County homes for top dollar with minimal stress and hassle and finding the perfect home under the best terms for buyers.

Call me directly at 760-216-6604 or email me at Casey@CaseyCooke.com.

When we talk, I will explain the process in detail and answer any questions you may have about the process.

Casey Cooke is a licensed Real Estate agent at Weichert Realtors ELITE, License#01845539.

Phone (760)216-6604. Casey@CaseyCooke.com

Casey Cooke specializes in helping homeowners sell their North County homes for top dollar with minimal stress and hassle. Vista realtor, vista real estate, vista home sales, sell my vista home, Shadowridge realtor, Shadowridge real estate, Shadowridge home sales, sell my Shadowridge home, Carlsbad realtor, Carlsbad real estate, Carlsbad home sales, sell my Carlsbad home.

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Strategic Default on the rise: facts to consider before purposefully defaulting on your mortgage

said on December 10th, 2010 filed under: Casey's Corner, Short Sales and Foreclosure

More borrowers considering “strategic default”

Strategic default is on the rise across the US. Strategic default is when a homeowner capable of making the payments decides to walk away and leave the keys on the counter or stop paying and attempt to do a short sale. Many wealthy homeowners are deciding to just walk away from second homes or investment properties because they are worth less than what is owed on the mortgage, often times tens or hundreds of thousands less.

Everything you need to know about short sales to get you started…in 5 minutes or less

But dumping that poorly performing piece of property may not be as straight forward as it seems. Although it often can become a “financial decision” to walk away, it often is not as simple as dumping other assets such as stocks or bonds. Depending on where the home is and the type of loans used to purchase and hold it, the move could haunt you for years to come. Lingering effects can be devastated credit, taking 7-10 years to recover from, as well as the potential for the lender to come after you for the unpaid balance.

Strategic Default “on the rise”

In July, a study by researchers from the European University Institute, Northwestern University and the University of Chicago concluded that the strategic default trend was “large and rising” among homeowners with an equity shortfall of $100,000 or more. As of last March, it said, strategic defaults accounted for 35.6 percent of all foreclosures, compared with 23.6 percent a year earlier. In an area like San Diego where home values shot up into the stratosphere and then came down like an asteroid, it is not uncommon for homeowners to find themselves $100,000 or more underwater. I see it all the time. And it is not just high income earners. It is the single income military family that bought on a 100% VA loan at the height of the market. Or the dual income white blue collar family that stretched to get in before they were “priced out.”

HAMP Program Fails North County Homeowner’s Miserably

Either way, people are increasingly asking themselves, sure I may be able to keep it, but why would I? Sure I may be able to get the lender to “modify” my loan so the payments come down, but I am still $150,000 underwater, does that make any sense?

Key points to consider

Here are some key questions to ask yourself if you are in this situation.

Is the home “owner occupied” or was it an investment “non-owner occupied” property? Owner occupied loans typically offer more options/solutions for borrowers in the case of default. Non-owner occupied, or investment loans have less flexibility and solutions available. Sure you can walk away and often times the lender has no further recourse, but this means foreclosure, which is a credit train wreck
How many loans are on the home? Default can be much simpler if there is only one loan on the home. Especially if that loan is an owner occupied, purchase money mortgage. This situation offers the greatest flexibility and menu of solutions for borrowers.
What type of loans are on the home? As mentioned above, if you have one loan and it is owner occupied purchase money this is the simplest situation to be in. If you have more that one, and they are not purcahse money, this can be challenging. I have a short sale right now where the second loan is a HELOC that the owner took out after they bought and that lender knows they would have recourse after a foreclosure so they are negotiating much harder for more money. This makes the situation much more challenging.
Can you prove hardship? This is becoming a key question right now. I had a friend call me the other day that is WAY upside down on their home and wants to move out and get something bigger, even if they have to rent. Unfortunately they make plenty of money to maintain the home. This is a challenge because they cannot prove true “hardship”. Being $150,000 upside down on your home in a declining market is not a hardship. Being $150,000 upside down and having your salary cut in half or falling ill, or having a spouse laid off is a true hardship.

Will Bankruptcy help?

Filing Chapter 13 bankruptcy protection, in which the homeowner arranges to pay off debts at lowered amounts over a maximum of five years, is one way to get off the hook for second loan. You still have to qualify and you still have to make payments for 5 years, but after that you often can wash away the balance. Chapter 7 bankruptcy may be preferred in many cases, but it has become much more difficult to qualify for chapter 7 and many homeowners simply can’t do it.

Over one third say it is OK to walk away from your mortgage

Though not illegal, strategic defaults are controversial, because they are viewed in some circles as unethical. The practice is common among property developers.

For homeowners under water, experts say, it can make economic sense. It’s a business cash-flow decision, but the risk is that you’re rolling dice with your future credit and potentially leaving yourself open to future collection activities.

Here are a few additional articles you may find useful! Remember, one of the keys to a successful transaction is educating yourself, so if you want yours to go smoothly, read read read! If you would rather just trust me instead that is fine as well, my advice is always in my clients best interest before my own.

Thank you very much for reading my blog! I hope you found it helpful.

When we talk, I will explain the process in detail and answer any questions you may have about the process.

Thank you for reading this, I hope I have been helpful!

Casey Cooke is a licensed Real Estate agent at Weichert Realtors ELITE, License#01845539.

Phone (760)216-6604. Casey@CaseyCooke.com

As ALWAYS. Casey Cooke and Weichert Realtors ELITE want you to know that defaulting on your mortgage, going into Foreclosure and doing a Short Sale or Loan Modification can have serious tax, legal, and credit consequences. We ALWAYS recommend you seek the advice of competent tax and legal counsel and consider all of your alternatives. We can help you, but we are not attorneys or tax professionals and therefore this should not be construed as tax or legal advice at any time!

said by Casey Cooke 6 Comments »

How much are those Holiday lights really costing you…

said on December 4th, 2010 filed under: Around Town, Casey's Corner

Wow, I need to add MORE lights!

Whether you go big and deck the entire front yard of your house out like the small world ride at Disneyland, or leave the lights off and hide in shame until the Holidays are over, the reality is according to some recent data those lights don’t cost you a whole lot.

With all the energy efficient advancements out there, more decorations sold today operate on a fraction of the electricity they used to. According to Gemmy Industries Corp., a typical outdoor decoration that lights up and is inflated by a fan only uses about 40 to 100 watts of energy.

6 steps to make sure your home is priced RIGHT the first time

If you leave it on for 5 hours a night at an average of 70 watts that is about $1.26 per month according to calculations from the Alliance to Save Energy, an organization that promotes energy efficiency.

It gets even better!

Operating costs of other items, such as holiday light strings, is very modest as well. That is good news at a time when so many homeowners are watching their wallets tightly, and foreclosures and short sales are on the rise. Last year I recall I was one of the few on my street in Vista that put lights up at all. While I would love to see even more participate, I have noticed that this year more of my neighbors have decided to take part.

8 good reasons to sell during the Holidays

According to the Alliance to Save Energy, a typical strand of 50 Holiday mini-lights costs about 40 cents per month to power, assuming you leave them on for five hours per night. Replace them with a comparable strand of LED lights and you’ll drive it down to about 7 cents per month per strand. In fact, unless you plan to create your own winter wonderland, complete with big bulb C-7 or C-9 holiday light strands that suck up much more energy, and your goal is to create a homing signal so bright Santa can see it from the North pole, chances are you won’t notice much difference in your energy bill at all.

Turn them on and off at set times to save even more

Here is another tip that I use. Put everything on a timer. This way your blow up Santa isn’t Ho Ho Ho-ing and waving at your neighbors at 4am(and spinning your meter on double time).

3 surefire tips to get top dollar for your home even in a slow market.

So I invite you all to go ahead this year. Get out and decorate. I feel most people really enjoy it, I know I do. And who couldn’t use an extra dose of that Holiday cheer right now?

Thank you very much for reading my blog! I hope you found it helpful.

When we talk, I will explain the process in detail and answer any questions you may have about the process.

Thank you for reading this, I hope I have been helpful!

Casey Cooke is a licensed Real Estate agent at Weichert Realtors ELITE, License#01845539.

Phone (760)216-6604. Casey@CaseyCooke.com

said by Casey Cooke Leave A Comment