Connecticut Mortgage Rates and Financing Update August 19, 2011

Purchasing a home is currently cheaper than renting in 74% of major U.S. cities, according to Trulia's Summer 2011 Rent vs. Buy Index , which compares the cost of buying and renting a two-bedroom apartment, condominium or townhouse in the nation's 50 biggest cities

Thursday was one day where the importance of  watching the Treasury market for mortgage rate indications was clear.  Although there are a few instances of lower-than-2% 10 year rates in the ancient past, the fact that 10 year notes dipped into the 1's is an unprecedented event in modern economic history.

With a market this volatile and moving this quickly, the secondary mortgage market simply can't keep pace with the Treasury yields.  These  rapid movements ultimately weaken current mortgage rate offerings.  The best thing for mortgage rates right now is stability.

Borrowing costs are higher this week.  When volatility picks up in the secondary mortgage market, the cost of doing business gets more expensive for lenders (hedging costs go up). The added costs are passed down to consumers. These costs are unavoidable.

This Week's News as it Relates to the Mortgage Industry and You.

Some lenders have been adjusting their loan pricing much higher because they can't take-in anymore business.  They have pushed rates higher to encourage consumers to either wait it out or find another lender offering lower rates.  

CURRENT MARKET as reported by Mortgage Rate Watch - The Best Execution 30-year fixed mortgagerate  has fallen to 4.125%.  Several lenders are willing to offer 4.000% and even 3.875% is possible for those interested in buying down the rate with points. 4.250% is widely-available. On FHA/VA 30 year fixed Best Execution is 4.000%, but 3.875 and even 3.750 are available with additional closing costs. 15 year fixed conventional loans are best priced at 3.625% but we're seeing aggressive quotes as low as 3.375%. Five year ARMs are still best priced at 3.25. ARMs seem to have bottomed out.

Today's Mortgage Rates

30 year fixed - 4.125% + .0 points for rate
20 year fixed - 3.750% + 0  points for rate
15 year fixed - 3.375 % + 0 points for rate
10 year fixed - 3.250%  + .50 points credit for rate
5/1 ARM - 2.625% - 0 points for rate
7/1 ARM - 3.00%  + 0 points for rate

FHA/VA
30 year fixed - 4.00 % +  .500 points for rate
5/1 ARM - 2.750 +  0 points for rate
7/1 ARM - 3.125 + .250 point for rate

Jumbo - over 625,500 - to 2,000,000 Fairfield County
30 year fixed - 4.625 % + 0  points  for rate
15 year fixed - 4.250% + 0   points for rate
5/1 ARM - 3.125 % + 0 points for rate
7/1 ARM - 3.625% + 0 points for rate

10/1 ARM -  4.250% + 0 points cost 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

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Tenants: Don't Sign That Lease!

...unless you are satisfied with the condition of the home or apartment.

I represented a landlord who was renting his furnished apartment. We received a call from prospective tenants who  were in a big hurry to find something. So much so, that they furnished their credit report prior to seeing the apartment, brought bank checks for the security and first months rent, and asked for the lease to be prepared in case they liked the home.

When we all met at the apartment, they were very happy, signed the lease, and delivered the checks to my client. They even breathed a sigh of relief that the apartment was as nice as they thought it would be, based upon the pictures that they saw on the internet.  Later that day, they even commented about how they liked the decor.

A  few days later, the tenant called, and said they were not happy with the condition of the apartment. Mind you , the lease was signed, and money exchanged hands. They "formally" accepted the apartment when they signed the lease, and paid monies to the Landlord.

What I must say to you is that no matter how much of a hurry you are in to move into an apartment, if it does not meet your standards, say so. The time to do that is PRIOR to signing the lease. Take your time, check out the apartment thoroughly, and make sure that you are happy.You are signing a contract.

These tenants were absolutely lovely- very nice people, but unfortunately, out of luck as far as any refunds or changes to the lease- (unless the Landlord is willing to do anything for them, and he is not bound to do so.) and I feel badly about it. This all could have been averted by looking over the apartment in a more thorough manner, and noting anything that they wanted done prior to occupancy as an addendum to the lease. In their case, since they wanted to move right away, the addendum could have been written whereas whatever they felt was necessary to be done could be completed within a certain time period.

You should always contact an attorney if you have any legal questions.

Bottom Line: Don't sign the lease if you are not 100 percent satisfied.

Landlords- Click Here to get your home or apartment rented!

Tenants: Click Here  and I'll help you find a great rent!

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Buy a Home or Sell a Home in Fairfield County, CT -on Facebook??

Have you checked out our companion Facebook Fan Pages recently? We have made some great additions and changes that we think you will enjoy and appreciate. 

Each of our Facebook town pages is updated at least 5 times per week, and features our CT Home Blog articles, the local Topix news source for that town only, upcoming town events on our wall, market statistics on the respective  towns that we provide them for, Choice Open House events,  Finance and real estate news from CNN, more news from AOL real estate,  and of course, access to the MLS, and links right back here to our main website and resource center at  www.TheCTrealtyBlog.com

Our pages are easily identifiable once you're on Facebook- Our Fairfield County Town pages have a multi-colored town map background, and our New Haven County Town pages have a blue map background.

Here are the towns and pages to look for on Facebook:

In Fairfield County:

Darien    Easton    Fairfield    Greenwich   Monroe   New Canaan  Newtown
Norwalk   Redding   Southport   Stratford      Trumbull   Weston     Westport

        New  Haven County and "The Valley"

             Ansonia   Derby   Milford   Oxford   Seymour   Shelton

If you are looking to find specific information on your favorite town (or towns), we have organized all of our Facebook Fan pages  and put them on this site with a "like box" for easy reference. Just click on the handy text link provided, or the blue  "Join us on Facebook" graphic on the left hand side of our site to see an alphabetical list by county of the towns we provide this information for, and click on the town (or towns) that you're interested in. It's that simple!

Fans have the ability to subscribe to RSS feeds and/or SMS messaging for our posts on any town page(s).....and we'd love some more fans, too!

We hope you enjoy the information we provide to you, and when you need a real estate agent, please call us! We've got Fairfield County and Southwestern Connecticut covered.  No one else even comes close.

Need us now?
Buyers, click here
Sellers, click here

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Introducing Real Estate Attorney Guest Contributor, Felicia B.Watson

I would like to introduce veteran Real Estate Attorney Felicia B. Watson as a guest contributor on theCTrealtyBlog to update you on legal concerns as they pertain to your real estate purchase or sale.

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Usually, my Seller client does not telephone me until after he or she has received an offer to purchase.  Prior to meeting with me the Seller has already filled out his/her Residential Disclosure Form.  I would like to discuss a section that gets many people in trouble.  I have seen this particular problem arise on more than one occasion.  This is Section #17- Basement: Water/Seepage?Dampness?  Explain, amount, frequency and location.

If you have even one incident of water coming into the basement, report it.  Even if the electric was off, the sump pump not working, a leak in the roof, a 100 year flood, anything.  No harm can come if you report it.  If you don’t report it, it can come back to haunt you.  I have seen Buyers sue Sellers over one incident not being reported.  Even if you are in the right, the legal fees can be cost prohibitive forcing you to settle for several thousands of dollars.  If you report even the most minor incident, you won’t have a problem.  As Sellers, it always best to disclose, disclose, disclose!

About Felicia B. Watson

Felicia B. Watson is a highly skilled and experienced  attorney who has been practicing law for over 30 years, and specializes in Fairfield County Connecticut  Real Estate.

Felicia's law practice involves all aspects of residential real estate, commercial property, new construction and retail transactions, and she is involved in all aspects of real estate financing. She has been involved in thousands of transactions representing both Buyers and Sellers and, as she puts it, "purchasing a home is one of the monumental moments in a person's life".

Her services include contract preparation and review, lease agreements, planning and zoning concerns, building permits, wetland and conservation as well as probate issues.

In her own words, Felicia says "Real estate has been my passion for over thirty years", and it shows. Furthering her commitment to her clients, she is currently pursuing her Masters Degree in Real Estate Development at NYU. She has also served as an Assistant Attorney General, and as an Elected Official on the Planning and Zoning Commission.

Attorney Felicia B. Watson
FeliciaWatson@sbcglobal.net

Connecticut Homeowner Tips: 15 Tools You Should Have for Your Home

Funny, you don't think about any of these tools until the very instant that you need one.  Unfortunately, at that point, it can turn into mayhem until you get what you need. We hope this helps you to avert a problem in the future.

The following items are essential tools, but this list is by no means exhaustive. Feel free to ask an InterNACHI inspector during your next inspection about other tools that you might find useful.

 

1.  Plunger: A clogged sink or toilet is one of the most inconvenient household problems that you will face. With a plunger on hand, however, you can usually remedy these plumbing issues relatively quickly. It is best to have two plungers -- one for the sink and one for the toilet.

2.  Combination Wrench Set: One end of a combination wrench set is open and the other end is a closed loop. Nuts and bolts are manufactured in standard and metric sizes, and because both varieties are widely used, you’ll need both sets of wrenches. For the most control and leverage, always pull the wrench toward you, instead of pushing on it. Also, avoid over-tightening.

3.  Slip-Joint Pliers: Use slip-joint pliers to grab hold of a nail, a nut, a bolt, and much more. These types of pliers are versatile because of the jaws, which feature both flat and curved areas for gripping many types of objects. There is also a built-in slip-joint, which allows the user to quickly adjust the jaw size to suit most tasks.

4.  Adjustable Wrench : Adjustable wrenches are somewhat awkward to use and can damage a bolt or nut if they are not handled properly. However, adjustable wrenches are ideal for situations where you need two wrenches of the same size. Screw the jaws all the way closed to avoid damaging the bolt or nut. 

5.  Caulking Gun: Caulking is the process of sealing up cracks and gaps in various structures and certain types of piping. Caulking can provide noise mitigation and thermal insulation, and control water penetration. Caulk should be applied only to areas that are clean and dry.

 

6.  Flashlight: None of the tools in this list is of any use if you cannot visually inspect the situation. The problem, and solution, are apparent only with a good flashlight. A traditional two-battery flashlight is usually sufficient, as larger flashlights may be too unwieldy.

 

7.  Tape Measure: Measuring house projects requires a tape measure -- not a ruler or a yardstick. Tape measures come in many lengths, although 25 feet is best.  Measure everything at least twice to ensure accuracy. 

8.  Hacksaw: A hacksaw is usefu for cutting metal objects, such as pipes, bolts and brackets. Hacksaws look thin and flimsy, but they’ll easily cut through even the hardest of metals. Blades are replaceable, so focus your purchase on a quality hacksaw frame.

 
9. Torpedo Level: Only a level can be used to determine if something, such as a shelf, appliance or picture, is correctly oriented. The torpedo-style level is unique because it not only shows when an object is perfectly horizontal or vertical, but it also has a gauge that shows when an object is at a 45-degree angle. The bubble in the viewfinder must be exactly in the middle -- not merely close.

10.  Safety Glasses / Goggles:For all tasks involving a hammer or a power tool, you should always wear safety glasses or goggles. They should also be worn while you mix chemicals.

11.  Claw Hammer: A good hammer is one of the most important tools you can own.  Use it to drive and remove nails, to pry wood loose from the house, and in combination with other tools. They come in a variety of sizes, although a 16-ounce hammer is the best all-purpose choice.

12.  Screwdriver Set: It is best to have four screwdrivers: a small and large version of both a flathead and a Phillips-head screwdriver. Electrical screwdrivers are sometimes convenient, but they're no substitute.  Manual screwdrivers can reach into more places and they are less likely to damage the screw. 

13.  Wire Cutters: Wire cutters are pliers designed to cut wires and small nails. The side-cutting style (unlike the stronger end-cutting style) is handy, but not strong enough to cut small nails.

14.  Respirator / Safety Mask: While paints and other coatings are now manufactured to be less toxic (and lead-free) than in previous decades, most still contain dangerous chemicals, which is why you should wear a mask to avoid accidentally inhaling. A mask should also be worn when working in dusty and dirty environments. Disposable masks usually come in packs of 10 and should be thrown away after use. Full and half-face respirators can be used to prevent the inhalation of very fine particles that ordinary facemasks will not not stop. 

15.  Duct Tape: This tape is extremely strong and adaptable. Originally, it was widely used to make temporary repairs to many types of military equipment. Today, it’s one of the key items specified for home emergency kits because it is water-resistant and extremely sticky.

by Nick Gromicko and Rob London

Nick Gromicko, FOUNDER. http://www.nachi.org
International Association of Certified Home Inspectors (InterNACHI) is the world's most elite, non-profit inspection association.
President, ComInspect, www.cominspect.com
Director, Master Inspector Certification Board, www.certifiedmasterinspector.org
Author, 15 books and Co-Host of  http://www.NACHI.TV