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Are Loan Costs Neogotiable When Buying Or Refinancing?

by Southern Californias Top Producing Mother & Son Te

Here is a really good answer to a question on loan costs. 

Question: I took an early retirement package from my employer approximately two years ago. In order to reduce my expenses during those two years, I took out a home equity line of credit at 4 percent to pay off a rental property mortgage of $113,000 that had an 8.6 percent rate.

I was able to repay approximately $4,000 to principal in the past two years. But my home equity line of credit has risen to 7.5 percent and I am ready to refinance the rental property.

I have spoken with a local bank and they offered me what I feel is a good rate of 6.6 percent, but the closing costs will be slightly more than $3,800 with zero points. I felt that was extremely high based on what I hear from financial experts.

Is this amount negotiable? I have an excellent credit score. I feel that I would be going back to where I was two years ago if I do this loan. Thanks so much for your help.

Answer: Everything is negotiable when it comes to buying real estate, hiring an agent and getting a mortgage.

There is an inverse relationship between closing costs and fees and the interest rate on a loan. The fewer fees you pay, the higher your interest rate. You can also buy down the interest rate of a loan by paying more in fees.

While your closing costs seem high, you're trying to finance an investment property. Closing costs and fees are typically higher with an investment property.

You should ask for an itemization of those costs, by the way, because some of them may be negotiable. You may be able to close at the end of the month instead of at the beginning and cut down on your prepaid interest, but this only changes the cash you'll need at the closing and does not reduce your loan fees. Ask the lender to provide you with an estimate and make sure the closing costs are itemized so you can see what you're paying.

You should contact at least one other lender to see the fees that that other lender would charge you to compare with the first lender. By shopping around this deal to other lenders, you'll know if you're getting a good deal or getting ripped off.

 

TRUST - Very Important In The Real Estate Market

by Southern Californias Top Producing Mother & Son Te

By Chris Gonzales:  I always stress to my clients that when working with real estate professionals one must truly feel comfortable with the person or team they are working with. 

Here with Maria Palacios & Assoc. - Mother & Son Team, trust is something we highly stress.  The question is, how do we earn that trust?  A couple of  ways we do that is to inform and teach.  We educate all of our buyers and sellers on the details of the transaction.  Of course, we don't overwhelme our clients to the point where they are taking a real estate course, but we make sure that they understand the most important things, which are how much they are being charged, where the money is going, how much they will be getting in return, and so on. 

Recently I read an article of someone making a $40,000 commision off of 1 sinlge loan.  Carolyn Warren, author of the book "Mortgage rip-offs and money savers," talks about a time when she went out to lunch with a Mortgage Broker.  She mentions that the turning point in her career was when she heard him say that he made a $40,000 off of a loan that he had just closed.   

When you understand the difference between lending and selling a home, it's very difficult to think that a lender can make that much off of a single loan.  In selling a home, a real estate agent must spend marketting dollar, and if they have a team, possibly pay a salary to certain individuals.  There is much TIME spent in open houses and lead calls. 

In closing, please, please, please, work with someone that you truly trust.  Not necessarily the one that gives you the best sales pitch, but an individual or team that you think you will be most comfortable working with.  That is why here with Maria Palacios & Assoc - Mother & Son Team, we encourage for buyers and sellers to shop around or interview other agents when thinking of making a real estate move.   

Majority of NOD's Centered Around Inland Empire

by Southern Californias Top Producing Mother & Son Te

We hear it on the news every day.  There is always some type of news regarding foreclosures and Notice of Defaults (NOD'S) ever single day of the week.  Unfortunately the numbers are showing that half of the default activity is confined to the Inland empire and Central Valley.  Strikingly, in this same area home prices increased 34 percent year-over-year in the first quarter of 2005.   

An estimated 49.5 percent of home owners were able to sell, or refinance avoiding foreclosure, and bringing there home current.  A year ago, 80.9% of homeowners were able to save there home to stay and live in it, or save and obtain the equity that they still had in there properties

Of course the number has dropped dramatically as a result of the slow real estate market and lack of sufficient equity to obtain a loan approval from the bank.  Since banks as a whole have become more conservative with there approvals, home owners are having a lot more trouble refinancing after their 2 and 3 year adjustable ARMs are maturing.   

Market Conditions

by Southern Californias Top Producing Mother & Son Te
By Chris Gonzales Yesterday rates went up, and 10-year Treasury note prices fell, as Jobless Claims fell and stock markets around the world rallied. Unfortunately this is continuing today. Retail Sales were +.6%, ex-autos +.4%, the Producer Price Index was +1.1% (year-over-year up a whopping 4.4%), ex-food & energy it was +.1% (year-over-year +2.0%).  Treasury notes' yield rose to a three-week high as the sense that the Fed is temporarily done easing rates increased. Some speculate that the housing market is bad, but so far its impact on the overall economy appears to be contained. And, from the average person's point of view, given the crowded airports, crowded malls, and "help wanted" signs that seem to be everywhere, many parts of the economy are indeed doing very well. At 7AM PST August's Business Inventories are expected +0.3% and the University of Michigan Consumer Sentiment Index is expected to have edged a little higher to 84.0 from 83.4

Dashund Racing in Old World Village

by Southern Californias Top Producing Mother & Son Te

Bring the whole family for Dachshund racing in Old World Village! We have personally taken our 4year old dachshund and it is a great event to have the dogs interact and have fun!  If you don't have a dachshund just come for kicks it's something different to do for dog lovers!

Dozens of dachshunds will race down the20-yard cobblestone track as hundreds of spectators cheer them on. Some of the dogs will have tonly rained for minutes with a team of two handlers each who encourage and plead with the little dogs. The winners ride with the mayor in the Oktoberfest Parade.

The dachshund, a type of hound dog, was bred in Germany to hunt badgers and other small prey. Their short legs are ideal for following such prey into burrows-but not so ideal for long, loping strides that might be useful for racing.  Dachshund racing gained popularity in the '90s after Miller Brewing Co. held a race in Shreveport, La. spawned by a series of commercials featuring dachshunds. Today, the races have become wildly popular across the country in places like Ohio, Minnesota, Montana, Florida, Missouri, Texas and Alabama. Many races benefit animal shelters or rescue organizations.

Old World Village

7561 Center Ave, Huntington Beach

For info & sign ups: (714) 898-5111

 For Event Dates & Times visit: www.oldworldvillage.net

 

Huntington Beach Farmers Market & Craft Fair

by Southern Californias Top Producing Mother & Son Te
Huntington Beach Farmers Market and Craft Fair are Popular Staples The popular Friday afternoon Huntington Beach Farmers Market and Craft Fair, held at Huntington Beach’s Pier Plaza, have continued to delight young and old for more than five years. Located at Pacific Coast Highway and Main Street, the Farmers Market and Craft Fair attract locals and visiting beach-goers. A recent edition of the Los Angeles Times gave the market a favorable review and noted that it “...enjoys the most beautiful location of any market in the Southland—right along the beach.” The Farmers Market features a wide variety of fruits and vegetables, including organic produce. It is open Fridays from 1 to 5:30 p.m. during the summer and 1 p.m. to sunset during the winter. Due to event conflicts, it will be cancelled on August 2. The Craft Fair features both whimsical and useful creative arts and craft items made by more than 50 artisans. Held Fridays, at the same time and location as the Farmer’s Market, the Craft Fair will not be held on Aug. 2, Sept. 6 and 13 and October 4 due to event scheduling. The Friday Farmers Market and Craft Fair are part of the Huntington Beach downtown experience that provides a relaxed family-oriented environment, including a scenic pier, expansive beach, a collection of shops and restaurants, a six-plex movie theater and numerous free special events. For more information about the Farmers Market, Craft Fair or special events call (714) 536-5486.

 

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Photo of The Mother & Son Team - Maria Palacios & Chris Gon Real Estate
The Mother & Son Team - Maria Palacios & Chris Gon
Berkshire Hathaway HomeServices, California Properties
16911 Bellflower Blvd
Bellflower CA 90706
(877) 883-1003
Fax: 562-381-9113