Holiday Tradition in San Carlos

It's that time of year again! Time for the glorious decorations on Eucalyptus Ave. between Orange and Tamarack in San Carlos to shine like the stars for Christmas. If you haven't experienced driving down this street at night during the holidays - don't miss out! It is truly breathtaking and a lot of fun.

Check out some of the homes at:
http://www.lightsofthevalley.com/Properties/San_Carlos.asp

American Dream homes: Prices in 10 cities

How much does the American Dream home cost? From $2 million in Los Altos, Calif., to $65,000 in Cleveland, here's what you'll pay for a 4-bedroom, 2-bath house, according to Coldwell Banker's annual survey.

Go to this link to see:
http://money.cnn.com/gallery/real_estate/2014/11/18/american-dream-homes/index.html?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_realestate+%28Real+Estate%29

Fannie And Freddie Set To Make Mortgaging Easier

Representations and warranties for existing but underutilized Fannie Mae and Freddie Mac guidelines came online Monday that will make it easier to get a mortgage to buy a home. The mortgage giants have a minimum credit score floor of 620 but most lenders have been reluctant to incorporate that standard in underwriting guidelines.  As well, consideration is being given to lowering the minimum down payment from 5% to 3%, but no decision or announcement has been made.  Obviously this would be great news for prospective homebuyers that do not have a lot of money to put down or may have some challenging credit history. This will of course add homebuyer candidates to the buyer pool and should create increased demand in the housing markets.

These expanded guidelines, if prudently applied, could add a layer to the mortgage and home buyer consumer market that is presently underserved.

That being said, if these new guidelines speak to your borrower profile, do not expect to just head over to your local mortgage lender and pick up a briefcase full of house buying cash.

How easy it will be to get conventional loans with 3% down payments and 620 credit scores is another issue. Mortgage lenders live in the cocoon of Qualified Mortgage protection and while this easing may in fact expand Ability-To-Repay parameters, a price will be paid to fortify these riskier loans. That price will take the form of higher risk based interest rates, more expensive PMI (mortgage insurance), increased reserve asset requirements, even tougher debt ratio standards. Easier is not a synonym for expanded and expanded is what is really happening to Fannie and Freddie guidelines.

The real bonus with these expanded guidelines is how conventional financing will be positioned for direct competition with FHA loans. FHA, HUD and the deficit black hole that is the Mutual Mortgage Insurance Fund are about to see demand for overpriced Mortgage Insurance Premiums plummet. FHA MIP has increased five times over the last three years and is now priced beyond the point where anybody at HUD can reasonably explain why. Add to this Cadillac mortgage insurance pricing the fact that there is no way to get rid of FHA MIP regardless of equity, and conventional financing becomes the ipso facto clearly more attractive alternative.

The math is pretty simple: FHA requires upfront MIP and conventional PMI does not. FHA MIP is more expensive than conventional PMI, and oh yeah, FHA MIP stays with the loan for the life of the loan regardless of equity, while conventional PMI allows for current appraisal supported equity of 22% to eliminate PMI. The choice is simple; no possibility of parole or parole.

Conventional loans are tougher on things like debt ratios (comparing monthly income to mortgage payments and recurring debts), but every FHA mortgage consumer should have their mortgage rep take a long and hard look at whether a conventional loan with a 3% down payment or a 620 credit score is a viable option.
I have been notoriously hard on HUD, the FHA, even Commissioner Galante about the consumer gouging nature of ever increasing FHA mortgage insurance premiums and the interestingly managed runaway deficit MMI Fund. Free market economics have a way of correcting and creating balance even in engineered market sectors. With expanded conventional mortgage financing in one corner and positioned directly against FHA mortgage financing, the current and only game in town in the opposing corner, FHA MIP may be market forced to competitive pricing. Otherwise, FHA mortgage business will fall victim to accelerating conventional originations and that MMI Fund deficit will collapse on itself. Watch.

Market Insider: San Carlos

See how your San Carlos real estate market is doing @:

 http://www.sancarloshomefinder.com/mimarket/zip/94070/

Your New (and Noisy) Neighborhood at Night

If the first night you spend in your new neighborhood is the night you move in, you might be in for some tough surprises. Popular Mechanic listed sounds you might not be expecting.

1. Highway Noise: It can carry further when it’s humid, so you should check the neighborhood in the early morning, when the air is at its dewiest.
2. Industrial Noise: Check the neighborhood for industrial activity, especially where they use big, metal, roll-up doors. The workers might keep the doors closed in the winter but open in the summer, exposing you to unexpected sounds from within the factory.
3. Rail Yards: Idling trains can be very loud, especially late at night or during humid days.
4. Junkyards: These might use large machinery such as large-terrain forklifts and wheel loaders, which can be very noisy.
5. Water-Tower Pumps: These pumps charge overnight, sometimes causing a steady, throbbing sound. Then again, it might be too quiet to notice.

Check the neighborhood out yourself to make sure: Go for a nighttime drive or look on maps to see what you’re up against.

Blue States See Higher Home Value Appreciation, Study Finds

Homeowners in blue states saw more value appreciation since the last election than than those in red states, according to a Zillow study published on Monday.

Home values in liberal-leaning states have risen 17.8 percent since the last election, while those in conservative-led states have risen a more modest 8.9 percent.

So can you turn your home value around in the next vote? Not likely. The cause of the appreciation is not liberal leanings but location — most blue states are large, coastal and host to the nation’s largest cities.

Zillow blogger Emily Heffter also pointed out that home values in blue states have more ground to make up.

“Red states avoided the worst of the housing market crash,” Heffter said. “That meant that [blue states] had a bigger bounce back up.”

What if you live in a swing state? Your home value appreciation likely falls somewhere in between: Zillow found an average of 14 percent for “purple” states.

Living Large in Smaller Homes

The answer to affordable housing lies in less space and more peace of mind.

 Written by Shira Boss

Struggling with the high cost of housing? Want to be a homeowner but wondering how you can afford it? There’s a solution: think smaller.

A smaller home not only costs less in monthly payments, but costs less to maintain, to furnish, to decorate, to clean, and especially to heat and cool. With less space to look after, you can free up not only money but time.

“The reality is housing represents a huge debt that has become unsustainable for the average family,” said Susan Milewski, who worked as a realtor for 23 years and is now a proponent of affordable housing. “The rule of thumb for housing used to be between 25-29 percent of one’s paycheck to be applied toward housing. Now it's more like 75 percent and this leaves less disposable income for food, clothing and other essentials. Never mind a savings plan.”

Milewski advocates smaller homes with fewer amenities and for using solar, wind and geothermal energy.
The average size of a new home in 2012 topped 2,500 square feet, according to the US Census Bureau—that’s compared to 1,660 square feet in 1973. At that time, 23 percent of new homes had four or more bedrooms. Today, 41 percent have four or more bedrooms – and nearly a third have three or more baths. Cleaning a bathroom is onerous—why clean three (or more)?

In areas of the country, e.g. Florida, where a McMansion might seem affordable, do buyers consider how much it will cost to heat and cool?

The average single family home racks up $2,200 in energy bills each year, according to the US Environmental Protection Agency (46 percent of that for heating and cooling). Fewer rooms and smaller rooms = lower bills.

Have you ever shopped for window coverings, only to be shocked at how expensive they can be? It makes a big difference to need to dress up only a few windows vs. many. The same goes for furniture, decorations, repairs, and the time or cost to clean.

Another bonus of smaller-space living: less room for storage means thinking twice before shopping. That leaves both money and time for other pursuits.

“The more stuff we own, the more mental energy is held hostage by them,” wrote Joshua Becker, author of the book Simplify, in a blog post, “ 12 Reasons Why You’ll Be Happier in a Smaller Home.” “The same is absolutely true with our largest, most valuable asset. Buy small and free your mind.”