How Often Should You Update Your Connecticut Homeowners Insurance Policy?

What?  You never knew that you should update your policy? You're not alone... most people don't know, but at least now YOU do. Let your friends know, too.

Whether you have owned your home for quite some time, you have recently purchased your home and  made some improvements, or are planning to purchase a home and do some immediate or short term renovations, it is important to remember to review your policy coverages every year, or after any renovation.

With a decline in home equity that the real estate market has brought upon us, some homeowners have no choice but to remodel rather than move.

"Buildfax"  is a company that maintains a national building database, which also includes permits, and their latest report said that remodeling activity reached a record high in July as consumers put more discretionary income into improving or renovating their homes.T

Residential remodeling activity registered the 21st straight month of year-over-year gains according to The BuildFax Remodeling Index (BFRI) for July. The report goes on to say that consumers are continuing to remodel rather than purchase new homes and do so amid concerns of a recession..  

The July index was up 24 percent from one year ago and, at 130.4 is the highest number since the index began in 2004.

 The index was up in all regions, including the Northeast, although our area fared much better percentage-wise.

At the same time that building materials sales were up, there are indications that homeowners have not increased their insurance to reflect the changes in value.

Buyers: Remember to contact your insurance company if you are planning to do renovations. Please don't wait for an "event" to happen to find out that you are under-insured for the replacement value of your home. Contact your insurance carrier today.

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Source: MorgageNewsDaily.com

Connecticut Mortgage Rates and Financing Update September 16, 2011

Fixed mortgage rates fell to the lowest level in six decades for the second straight week, according to new figures compiled by Freddie Mac.  The GSE said the average rate on the 30-year Fixed Rate Mortgage dropped to 4.09%, the lowest rate since 1951.  The average rate on the 15-year mortgage, a popular refinancing product, fell to 3.30%, also a new low.  Freddie Mac chief economist Frank Nothaft said continued investor worries over the debt crisis in Europe kept Treasury bond yields low, driving down mortgage rates in the process.  Over the past week the yield on the benchmark 10-year Treasury fell to as low as 1.9% before rebounding to 2.08% on Thursday.

This Week's Financial News

The market had a "slew" of economic news Thursday. The Consumer Pride Index  was +.4% (higher than expected), but Jobless Claims were +11k to a total of  428k - higher than expected.   The Empire State Manufacturing Survey General Business Conditions index inched down one point. Nationwide, Industrial Production increased 0.2% in August, and Capacity Utilization edged up to 77.4%.  The Philadelphia Fed Index of General Business activity within the factory sector rose to -17.5 this month from -30.7 in August and 3.2 in July.

The impact of all this on rates was not particularly good, since the ECB coordination with our Fed will dampen the bid for safe assets (i.e., Treasury securities) and the CPI rose faster than expected in August. The 10-year US Treasury note yield increased as much as 13 basis points to 2.12%, after having dropped to a record low of 1.8770% three days ago and closed at 2.09%. Volume in Mortgage Backed Securities was light Thursday at just 64% of the 30-day average, according to Tradeweb's experience, and prices were worse by about .250.

The Federal Housing Administration is selling 11,000 to 13,000 foreclosed homes a month after re-engineering the way it manages and markets Real Estate Owned, or REO.  For the first nine months of fiscal year 2011 (ending June 30) the average days-to-list and the average days-to-sell REO decreased by 76 days (61%) and 25 days (12%) respectively, as compared to Financial Year 2010, according to the commissioner's Sept. 8 testimony.  This acceleration of sales has allowed FHA to reduce its REO inventory by nearly 40% in four months.  "As a result of these initiatives and despite the spike in properties being conveyed to us, FHA's inventory of REOs is down to 48,324," Galante testified. The agency had an REO inventory of nearly 80,000 REO at the end of March.

Today's Mortgage Rates

30 year fixed - 3.99% + .50 cost points for rate
20 year fixed - 3.75 % + 0 points for rate
15 year fixed - 3.250% + .50 points for rate
10 year fixed - 3.250%  0 cost points for rate
5/1 ARM - 2.50% - 0 points for rate
7/1 ARM - 2.875%  + 0 points for rate

FHA/VA
30 year fixed - 4.00% with 0 points for rate
5/1 ARM - 2.75 with 0 points for rate
7/1 ARM - 3.25 with 0 point for rate

Jumbo - up to 2,000,000 with 20% down
30 year fixed - 4.750 % with +.250 points  for rate
15 year fixed - 4.250% + .250 cost points for rate
5/1 ARM - 3.250% + .250  points for rate
7/1 ARM - 3.750% + .250 points for rate

10/1 ARM 4.375% with +.250 points for rate

Jennifer Buchanan,  Certified Mortgage Planning Specialist at MetLife Loans is a seasoned veteran of the Mortgage, Banking and Broker Industry and specializes in mortgage loans throughout Fairfield County, Connecticut.
   Her attention to detail is unsurpassed, and her understanding of the marketplace makes it easy to find the right loan to fit her clients specific needs .  Jennifer's local processing and closing team are also known for their exemplary service.
   Understanding that the vast majority of mortgage brokers never discuss the long or short term  financial needs or goals with their clients, she set herself apart from the rest by obtaining the coveted CMPS  designation. (Certified Mortgage Planning Specialist)
    She is a member of the National Association of Responsible Loan Officers, and her commitment to ethics, understanding of the marketplace, and business acumen have earned her the respect of her peers and clients alike.

Jennifer Buchanan
Metlife Loans
203-341-6949

Jennifer Buchanan- Your certified expert
 on mortgages offering Free Unbiased
recommendations based on your needs.

TheCTrealtyBlog Lands in the 'Technorati Top 100' and is the Number One Real Estate Blog in CT!

'Technorati's Top 100  for Business/Real Estate: TheCTrealtyBlog.com !

We’re thrilled to let you know that TheCTrealtyBlog.com is featured on Technorati as being in the Top 100 Business/Real Estate Blogs in the entire country! 

We are the only real estate blog in Connecticut to make this Category's Top 100, and  by reading our Blog, you are certainly in good company. Other blogs in the Business/Real Estate Top 100 list includes such notable real estate and finance blogs as and WSJ.com Developments,  Mortgage101, and The Realtor.com blog .

Technorati  was launched in 2002, and is the premier Internet search engine for relevant blogs.  Technorati currently indexes over 150 million blogs and ranks them according to authority, relevancy, and clout within its industry sector.  The name Technorati is a blend of the words technology and literati, which invokes the notion of technological intelligence or intellectualism.

The CT Realty Blog was founded by Broker Judy Szablak, a successful Fairfield County Connecticut  Realtor  for the past 26+ years. "We've concentrated  our efforts in the past year to produce timely, accurate and insightful reporting on real estate in Fairfield County Connecticut," said Szablak, TheCTrealtyBlog's Editor. "I recognize the honor that it truly is, and to see our work recognized by Technorati in this fashion is a great feeling, and we owe our success to our clients- without them, we would not have the experence to write what we do."

To get the most from theCTrealtyBlog, sign up for the RSS Feed to get updates on new posts, the latest news and hottest listings. Visit any of their local town blogs for up to the minute real estate market statistics and forecasts for Easton, Fairfield, Norwalk, Trumbull and Westport.

Judy is a successful real estate agent who specializes in  Fairfield County, Connecticut, so when you are ready to buy or sell, contact Judy Szablak, the agent with "Authority".

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Having a Difficult Time Selling Your CT Home? What About Offering Incentives?

There are still plenty of options for you consider if your home has languished on the market for longer than you would like. First, it's time to review your pricing and marketing strategies, and if all looks appropriate on those fronts, you might also want to consider offering incentives.

First, review your home's pricing. Is it in line with what it should be? If your agent has not given you an up to date market analysis in the last month, it should be done now, whether or not you decide to implement any kind of incentive. You may be able to roll the cost of your incentive into the price, and no one would be the wiser. It is important that if you decide on an incentive rather than a price reduction that your home's pricing is still in "the reasonable range".
So before you implement any incentive strategies, make sure you are not "giving your home away".

Next, review your marketing from day one. Is your home everywhere it is supposed to be, and can be on the internet, and is it presented accurately and properly? Do you have quality  marketing handouts?  It's time to fix anything that needs it, before you offer any type of incentive.

The reason that these two  things are so important  is that if they are not what the market dictates that you need, the outcome  for an incentive is  wasted, and so is the time and energy that was put into it. That being said, here are a few ideas:

1. Offer to pay closing costs ( or a portion of them) If your buyer is obtaining an FHA loan, the limit for a seller concession for closing costs is four percent.

2. Offer to buy down the buyer's interest rate.

3. Offer to pay the home taxes for one year, or even 6 months.

4. Offer a One year Home Warrantee

5. Offer to pay one year's worth of Homeowner Association fees.

6. Offer to have a room (or rooms) painted, the carpeting replaced, or some other cosmetic of their choice completed  prior to closing.

7. Offer to pay the first month's mortgage payment.

8. Offer a higher commission to the Buyer's Broker

There are many incentives to choose from, and each home is different. Not so long ago, I had a listing at that backed up to the thruway. It was noisy, as I can assume you could imagine. It was a nice home, but the buyers could just not get over the noise. We offered a parking pass to the train station with the sale of the home as an incentive. ( Parking Pass permits had a two year waiting list at the time, and believe it or not, that helped to sell the home! You just never know.

So don't be afraid to try an incentive, and don't be afraid to try a unique incentive. They do work!

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What Happens To Your Deposit Money in CT if You Can't Get a Loan on Time?

When a Buyer makes an offer to purchase a home, the offer is accompanied by an earnest money check, also commonly known as a down payment. 

In the State of Connecticut, typically a Buyer provides the Seller with a check for ten percent (10%) with the signing of the Contract and provides the remaining Ten percent (10%) at closing. The numbers are not set in stone but the more money offered as a down payment the more likely the Seller will accept an offer and the easier it is to be approved by a Lender for a Mortgage. 

The down payment is held in trust in the Seller's attorney IOLTA ( Trust ) Account.  In the Connecticut, if agreed to by the parties, this down payment may be released to the Sellers once the Buyer has obtained his/her Mortgage Approval. 

However, in the last 8 to 10 years, most Connecticut Bar Associations have written into their rules that the down payment funds can not be released until the time of closing.  In the State of New York, it is illegal for an attorney to release the down payment funds before the closing.
 
A question arises as to what happens if the Buyer does not get his/her Mortgage by the deadline.  If the Buyer does not get his/her Mortgage by the date stated in the Contract of Sale, the Buyer's attorney should ask for an extension to obtain the Mortgage Approval.  If the Buyer's attorney does not request that extension in writing, the Seller could be  entitled to the down payment if the transaction does not go forward. 

Also, if the Buyer backs out after signing the Contract, the seller may be entitled to the down payment.  Most Contracts have a liquidated damages clause, which allows the Seller to keep the down payment if the Buyer defaults.  If the Buyer does not qualify for the Mortgage and advises the Sellers in a timely fashion, the down payment is returned to the Seller.
 
However, it is not that easy for the Sellers.  If the Buyer had an extenuating cirmcumstance, i.e. - a death in the family, lost a job after entering contract, etc., the courts will look to these cirmcumstances and not allow a windfall to the Seller. 

Most courts will allow the Seller to be able to keep the difference to make him whole.  He can not reap a benefit from the default.
 
Every circumstance is different.  Keep an  eye on the dates in the Contracts, do everything in your power to meet your deadlines and if you cannot, ALWAYS request an extension in writing.  As a common courtesy most attorneys will allow for a one week extension and in the current mortgage environment more.

Article Submitted by Attorney Felicia B. Watson

FeliciaWatson@sbcglobal.net