Connecticut Mortgage Rates and Financing Update July 29, 2011

The theme of volatility is ongoing. Loan pricing has moved in the opposite direction from the previous day for 6 sessions in a row now.  The increases seen yesterday in home loan borrowing costs were erased the next day,  leaving things slightly worse than average versus the last two weeks, but about middle of the road when comparing to the last month.

The only bet that has a decent probability of success in this environment is that no bets are clearly better than any others. This should continue to be the case until at least some semblance of resolution makes it's way to the debt-ceiling debate. This makes for plenty of volatility in the meantime.

Rather than change rate sheets with each rapid movement in the secondary market, it's not only easier on all parties involved, but downright necessary for lenders to be extra conservative with rate sheet offerings.

The Federal Reserve plans to provide guidance to banks soon on how to handle the potentially turbulent financial waters if the United States exhausts its borrowing authority on August 1. "We have been engaged in operational planning with the Treasury," Fed spokeswoman Barbara Hagenbaugh said on Thursday. "We expect to be able to give additional guidance to financial institutions when there is greater clarity from the Congress and when Treasury outlines its specific operational plans."

PLEASE NOTE: THIS IS AN AMENDED VERSION OF THE RATES PROVIDED  EARLIER THIS MORNING. RATES CHANGED THREE TIMES TODAY... AND THEY ARE LOWER!!

30 year fixed - 4.375% + .0 points for rate
20 year fixed - 4.00% + 0 points for rate
15 year fixed - 3.50% + 0 points for rate
10 year fixed - 3.250%  + .705% lender credit points for rate
5/1 ARM - 2.625% - 0 points for rate
7/1 ARM - 3.125%  + 0 points for rate

FHA/VA
30 year fixed - 4.250% + .500 points lender credit for rate
5/1 ARM - 2.875 +  0 points for rate
7/1 ARM - 3.250 + 0 point for rate

Jumbo - over 729,000
30 year fixed - 4.99 % with 0  points  for rate
15 year fixed - 4.50% + 0   points for rate
5/1 ARM - 3.375 % + 0 points for rate
7/1 ARM - 4.00% + 0 points for rate

10/1 ARM -  4.50% with + 0 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

Tweet

Fairfield County CT on Forbes.com again! - America's Best Cities for Young Professionals

We live here, we know it's a great place, but it's great  to be recognized in a nice way on a national level by an authority such as Forbes.com

The following is an excerpt from the Forbes.com article written by Morgan Brennan on Monday, July 25, 2011. Brennan writes about Fairfield County, Connecticut which made the top 15 on their national list of 100 top cities, and how their list was compiled.

"M.S.A.: Bridgeport-Stamford-Norwalk, Conn. Average Annual Job Growth (2010-2012): 0.56% Median salary: $58,800 Cost-of-living index (U.S. average is 100): 136.3 Percent of pop. with college degrees: 43.6% 1 small business for every 39 residents 1 large business for every 891 residents Unemployment rate: 8.5% A job market dominated by hedge funds and other financial service companies mean young professionals' average paychecks in this Connecticut county are the third highest of the MSAs we assessed.   

With the unemployment rate stuck above 9%, recent college graduates are facing fierce competition for white-collar work: More than 2 million college-educated workers 25 and older are unemployed, according to the Bureau of Labor Statistics.

Behind the Numbers

To determine the best cities for young professionals, which we define as adults aged from 24 to 34 who hold a Bachelor's degree or higher, we started with the 100 largest U.S. Metropolitan Statistical Areas (cities and the suburbs surrounding them) as defined by the U.S. Office of Management and Budget. We assessed these cities based on seven factors, weighting them evenly: local unemployment rates and 2010 to 2012 job growth projections provided by Moody's Economy.com; Census Bureau data on the number of small businesses (defined as less than 500 employees) per capita, as well as the number of large businesses; the median salaries for 24- to 34-year-old employed college graduates, provided by PayScale.com; Moody's cost-of living index, to gauge how far those paychecks will go; and the percentage of the population aged 25 and older with college degrees in the area.

In second place on our list: Raleigh, N.C. The college town turned boom town, which tops our Best Places for Business and Careers list this year, has the fourth best job growth outlook of the cities we studied (2% a year for 2010-12) and a 7.9% unemployment rate that's well below the national average. With an abundance of colleges and universities in the area such as University of North Carolina and Duke University, and Research Triangle, a major center for high-tech and biotech research, more than 42% of the local population touts BA degrees, making it the most educated of the cities we looked at.

Midwestern cities eclipsed many glitzier coastal competitors for top spots on our list. In addition to Des Moines, Madison, Wis., ranks third; billionaire Warren's Buffett's hometown of Omaha, Neb., is No. 5; and Minneapolis-St. Paul, Minn., is No. 10. All three tout low unemployment rates and a large college-educated demographic. The cost of living in each of these areas is around or below the national average, ensuring their young residents' relatively high salaries go even farther. Healthy job growth is projected in all of these heartland hubs as well.

A few northeast metropolises cracked the top 15: hedge fund heavy Fairfield County, Conn. (No. 15); Portland, Maine (No. 6), which boasts the highest number of small businesses per capita of the cities we screened; government-town Washington, D.C. (No. 9); and the education and tech hub of Boston, Mass. (No. 12). No West Coast cities made the cut.

We ranked the 100 largest U.S. Metropolitan Statistical Areas based on projected job growth rates for 2010 to 2012 and cost of living data, provided by Moody's Economy.com; median salaries for 24 to 34 year old employed college graduates, provided by Payscale.com; unemployment rates; Census Bureau data on the number of small businesses and large businesses per capita; and the percentage of college graduates in the local population."

Tweet

Sellers: Don't dismiss that lowball offer just yet.

Don't get discouraged if you just received a "lowball" offer on your home.  Always try and maintain a postive attitude, even when your home isn't getting shown as much as you would like, and those very low offers come in. Although you might be angry or disappointed at what an initial offer comes in at, remember, it's just an initial offer. Everyone has different negotiating styles, and they may not mirror yours.

I certainly know how frustrating and disappointing it can be to finally receive an offer, and then to realize it is far below what you would even consider. Sometimes, an offer can come in so low that you might be angry that the buyers had even put it in writing, and wonder how they even had the nerve to submit such an offer. Then you might think, why would my agent even tell me about this offer? I

There are a few things that you should know, and think about if and when you receive  one of those lowball offers

1. That buyer really likes your house-even if they submitted a lowball offer. They took the time to write up a bid, sign paperwork, disclosures, get a pre-approved, AND write a check for an initial deposit. Would you do that if you really didn't want to buy a home?.... I think not- so try and hold back the emotions,  it's just their negotiating style.

2. Your agent must inform you of all offers, period, no matter what they are. They should never force you to accept an offer, but they absolutely must tell you about any offer that comes in, verbal or written- so don't shoot the messenger.

3. Some buyers just need to "try" and submit a low offer for their own peace of mind. It has nothing to do with your home, and it's not intended to be an affront to you. In the buyer's mind, they can say to themselves, "Well, I tried, and I wanted to see what they would say. A response from you, no matter how bg or small, is all they need to go forward, and to negotiate further. You may be surprised how many lowball offers can turn into a negotiated deal, as long as it's handled well. So don't give up before the ink is dry on that initial offer.

4. The buyer may have a list price to sales price percentage in their head, and they figure that if they start the bidding at a particular number, they will fall right in line with those averages. For example, the average sales price to list price ratio hovers around 94 to 95 percent of the list price.So some buyers want to come in at 90 percent or less of the asking price just to make sure that they don't exceed that "average" number. It's not a smart idea on the buyers part to negotiate that way, as some homes are overpriced by a significant amount, and even 90 percent of the asking price is way too much to purchase the home for, but they still do it. (Buyers, if you are reading this article, take a look at the article that discusses the importance of a market analysis when you are purchasing your home.)

5. And yes, there are those lowballs that won't go anywhere. Still, it is very important that you treat EVERY offer like it's going to result in a sale. Maintain a good attitude, and don't "get your back up" .

Right now, we are NOT in a sellers market, and if you have an offer on your home, your agent should "work that offer" to get it to be the very best deal that they can get for you. THEN decide whether or not you want to accept it.

Tweet

Should you buy that less than perfect house?

The answer to that question has to, and will be different for everyone. If your opinion of less than perfect means that you don't particularly care for the landscaping, that's one thing. If it means that the house is missing one room for your needs, that's another. So how do you decide if this "less than perfect" house is the right one for you?

First of all, do not let ANYONE, including a spouse, significant other, friend, family member, (or heaven forbid) your agent talk you into purchasing something that you do not want, or are not quite sure that you want.

What are your wants and needs for your new home? Are they realistic within your price range?

When I meet new buyer clients for the first time, I sit down with them and ask them a number of questions to ascertain what is important and what is not so important. I also want to find out what is an absolute "NO",  no matter what. Sometimes, it's hard for a buyer to figure out what is truly important, what they can live with and what would be unacceptable.

A little give and take depending on the importance of whatever criteria you have can be crucial to  finding a great house.  Let's look at a few examples:

You want a remodeled kitchen.

Well, that's fair enough. It can be a major disruption to remodel a kitchen, and that's not even taking the cost into account. Have you looked at the kitchen closely? If the cabinets are in good shape and the color of those cabinets is acceptable, what about changing the hardware and/or changing the countertop? The cost of that can surely be negotiated with the seller (although we wouldn't necessarily tell them that)

You do not want a  house on a main road.

Reasonable, too. By the way, what is your definition of a main road? A road divided by "double yellow lines", one that has a State Route number attached to it, one that has commercial development down the street, or maybe something that doesn't fit into any of those categories? Well, okay... you can't change a location. But if the house sits far back enough, would that make a difference to you? If it doesn't, then don't bother looking at homes on main roads, and make sure that your agent knows your personal definition of a main road.

The walls need painting, the carpet needs replacing, the floors need refinishing, or other  minor cosmetics.

Some buyers just don't want to be bothered with doinf any cosmetic work at all. And that's fine too.
If you knew that a home had everything else that you wanted, but needed the floors refinished in a few rooms, would you still say no to it?  What if the cosmetic work was completed prior to closing with the contractor of your choice ? Would that make a difference?

The house has everything you want, except it has a pool and you don't want one.

Also reasonable. Let me ask you this-  If the pool wasn't there, would you want to buy that house? If so, we can always ask the sellers to remove it. Simple as that. And, yes,  sellers have done it.

What I am trying to get at is that sometimes we want certain things that may not seem so obviously attainable if we don't ask, or try and figure out an easy solution that you can live with.

Certain things can't be solved to your satisfaction. But lots of other things can. Sometimes it takes imagination, but one thing is  for certain. If the house is that close to what you want, there must be a way to make it work. A great agent can make it happen, and I just happen to know someone! You can send me an email and we'll get started anytime you like.
Tweet

Fire Safety Tips for Home Buyers, Home Sellers & Homeowners

The U.S. Fire Administration reports that more than 403,000 home fires occurred in the U.S. in 2008, causing 2,780 deaths and more than 13,500 injuries.  Some fires are caused by issues related to the structure, such as lightning strikes, faulty wiring, furnace malfunctions, and other electrical and heating system-related mishaps.
 
But most home fires are preventable.  According to an April 2010 report by the National Fire Protection Association, adults over the age of 75 are almost three times more likely to die in a home fire than the rest of the general public.  The NFPA’s fire prevention program promotes the following eight tips that elderly people – and people of all ages – can use.

1.  Plan and practice your escape from fire.  - We’ve heard this advice before, but you can’t be prepared to act in an emergency if you don’t have a plan and everybody knows what that plan is.  Panic and fear can spread as quickly as a fire, so map out an escape route and a meeting place outdoors, and involve even the youngest family members so that everyone can work as a unit to make a safe escape.  

If you live in a condo or apartment building, make sure you read the signs posted on your floor advising you of the locations of stairways and other exits, as well as alarm pull stations and fire extinguishers.

2.  Plan your escape around your abilities.  Keeping a phone by your bedside will allow you to call 911 quickly, especially if the exits of your home are blocked by smoke or flames.  Keep a pair of shoes near your bed, too.  If your home or building has a fire escape, take some time to practice operating it and climbing it.

3.  Smoke alarms save lives.  If you don’t already have permanently installed smoke alarms hard-wired into your electrical system and located outside each bedroom and on each floor, purchase units and place them in those locations.  Install them using adhesive or screws, but be careful not to touch your screwdriver to any internal wiring, which can cause an electrostatic discharge and disable them.

Also, install carbon monoxide detectors, which can protect family members from lethal poisoning even before a fire starts.

4.  Give space heaters space.  Whether saving on utility bills by using the furnace infrequently, or when using these portable units for spot heat, make sure you give them at least 3 feet of clearance.  Be sure to turn off and unplug them when you leave or go to bed.  Electrical appliances draw current even when they’re turned off, and a faulty one can cause a fire that can spread through the wires in the walls at a deadly pace.

5.  If you smoke, smoke outside.  Not only will this keep your family members healthier and your home smelling fresher, it will minimize the chance that an errant ember from your cigarette will drop and smolder unnoticed until it causes damage.

6.  Be kitchen-wise.  This means monitoring what you have on the stove and keeping track of what’s baking in the oven.  Don’t cook if you’re tired or taking medication that clouds your judgment or makes you drowsy.  Being kitchen-wise also means wearing clothing that will not easily catch on the handles of pots and pans, or graze open flames or heating elements.

It also means knowing how to put out a grease fire; water will make it spread, but salt or baking soda will extinguish it quickly, as will covering the pot or pan with a lid and turning off the stove.  Always use your cooktop’s vent fan while cooking.

Keep a small, all-purpose fire extinguisher in a handy place, such as under the sink.  These 3-pound lifesavers are rated “ABC” for their fire-suppressing contents:  “A” puts out ignited trash, wood and paper; “B” acts on grease and other flammable liquids; and “C” deals with small electrical fires.  Read the instructions on these inexpensive devices when you bring them home from the store so that you can act quickly, if the time comes.  If your fire extinguisher is somewhat old because you've yet to use it, turning the canister upside-down and tapping the bottom will help agitate the contents and prevent them from caking, and possibly clogging the nozzle at the time of use.  It's also a good idea to stow an extra fire extinguisher near the bedrooms.  If an emergency arises and you find yourself trapped by an uncooperative window, you can use the canister to smash through it.

7.  Stop, drop and roll.  Fight the urge to panic and run if your clothes catch fire because this will only accelerate its spread, since fire needs oxygen to sustain and grow.  Tamping out the fire by rolling is effective, especially since your clothes may be on fire on your back or lower body where you may not be immediately aware of it.  If ground space is limited, cover yourself with a blanket to tamp out any flames, and douse yourself with water as soon as you can.

Additionally, always stay close to the floor during a fire; heat and smoke rise, and breathable air will normally be found at the floor-level, giving you a greater chance of escape before being overcome by smoke and toxic fumes.

Also, before exiting a closed room, be sure to test the doorknob for heat before opening the door.  A very hot doorknob indicates that fire could be lurking just outside; opening the door will feed the fire an added surge of oxygen, potentially causing an explosive backdraft that can be fatal.

8.  Know your local emergency number.  People of all ages need to know their emergency number (usually, it’s 911).  Posting it near the phone and putting it on speed-dial will save precious moments when the ability to think clearly may be compromised.

More Tips

    Make sure your electrical system is updated, and that you have appropriate AFCI and GFCI receptacles.  Have your system inspected by an InterNACHI inspector or a licensed electrician to make sure your electrical needs are not taxing your electrical system.

    Make sure you have smoke alarms and carbon monoxide detectors installed.  Test them to make sure they’re working properly, and change their batteries at least annually.

    Check to see that your house number is clearly visible from the street, and unobstructed by any tree branches or structural overhangs.  If first-responders are called to your home to put out a fire, make sure they can find you.

    Be aware of lit candles.  Never leave them unattended, and always blow them out when leaving home or going to bed.  This is especially important during the holidays when candles are used as holiday decorations.  Also, keep them out of the way of drapes and plants, and out of reach of children and especially pets, whose tails can accidentally knock over a candle or come into contact with its flame.

    Never use barbecue grills indoors, either for cooking or as a heat source.  The carbon monoxide they emit cannot be adequately vented, and their flammable materials pose safety hazards.  Also, do not use the oven to heat the indoors.  Space heaters are safer and more energy-efficient.  Ask your InterNACHI home inspector to perform an energy audit to find heat leaks, and to suggest low-cost ways to keep your home warm and comfortable during cold weather.

    Consider getting rid of your electric blanket.  The fire hazards associated with them make the prospect of trading them in for a thick comforter or multiple blankets much less worrisome.  When their embedded cords become bent, the internal wiring can break, causing them to short out and start an electrical fire. This electric blanket shorted out and caught fire, burning the bedding and mattress. Its user barely escaped serious injury.

    Be extra-vigilant when using hot pads, hot plates, Bunsen burners and portable cooktops.  They can overheat and burn the surface they’re sitting on, or burn through a cup or pot sitting on top, which can lead to smoke and fire.  Never leave these unattended, and always unplug (or extinguish) them when not in use.

    Unplug portable electronic devices and other small appliances when not in use.  Coffeemakers, blow dryers and other devices we use daily still draw current when they’re plugged in, even if they’re turned off.  A faulty device can cause an electrical fire that can be devastating.  One family in Boulder, Colo., returned home one day to discover their house burned to the ground; the fire marshal discovered that the cause was a switched-off curling iron that was left plugged into the wall's receptacle  Get into the habit of unplugging, just to be safe.

    Use extension cords sparingly, and always unplug them when not in use.  Some electrical devices work best when plugged directly into the wall’s receptacle or outlet, especially if they have a ground wire (which you should never cut off).  Devices plugged into extension cords can easily overheat (themselves or the extension cords), damaging wires within walls and weakening your electrical system, potentially causing an electrical fire.  Always check for the UL-listed label on extension cords.  Remember that they also pose a tripping hazard, which is another reason to minimize their use.

    Clean your clothes dryer’s lint trap after each use.  Your dryer should vent directly to the outdoors. Check to make sure that there are no obstructions in the vent hose, such as birds’ nests, foliage or other debris.  The vent should have a damper to keep wildlife and debris out, but it should not have a screen, which can trap combustibles, allowing them to accumulate, heat up, and possibly catch fire.

    If you have a fireplace, remember to have it professionally inspected and cleaned periodically by a chimney sweep.  Creosote buildup can cause a fire that may unexpectedly back into the living space.  Make sure your damper is working properly, and that the chimney lining is in good condition.  The next time your InterNACHI inspector inspects your roof, s/he can check for adequate flashing around the chimney, as well as its structural integrity.  Make sure the fire is completely out before you leave the home.  Keep all kindling and combustibles a safe distance away from the mouth of the fireplace.  Make use of a screen at the hearth to prevent embers from escaping.  And avoid burning green wood, which doesn't burn as evenly or safely as dry wood.

Smoke Alarms

All new residential construction requires the installation of smoke alarms, usually on each floor of the home, as well as outside each sleeping area.  Many newer smoke alarms can also detect carbon monoxide.  This silent and odorless killer is one of the primary causes of accidental death because family members can be fatally poisoned while sleeping.

Smoke alarms come in two types.  Photoelectric alarms can sense smoky and smoldering fires.  Ionization alarms are quicker at detecting flames and fast-moving fire.  Dual-sensor smoke alarms combine both these features, and are recommended by the USFA because it’s impossible to predict the type of fire that may erupt in a home.  There are also smoke alarms that vibrate and/or flash strobe lights to alert home dwellers who are vision-impaired or hard of hearing.

The leading U.S. manufacturer of residential smoke alarms, as well as home fire extinguishers, is Kidde.  Their dual-sensor smoke alarms were the subject of a voluntary recall by the U.S. Consumer Product Safety Commission in the summer of 2009 because of a malfunction caused by an electrostatic discharge created during their installation, rendering them inoperable.  Make sure that you install any portable smoke alarms and carbon monoxide detectors safely, and test them after installation.  You can also ask your local fire department to do this for you.

Many smoke alarms are hard-wired into the home’s electrical system, but may still have batteries for backup in the event of a power outage.  They also typically have a test button. Make sure you test them once a month, and replace the batteries once a year.  If you hear a chirping noise, this is a signal that the batteries are weak and need replacing.
Some smoke alarms have “nuisance” buttons.  If you burn something that you’re cooking and accidentally set off the alarm, you can press the nuisance button to turn it off.  Remember not to actually disable the alarm; you may forget to reset it later.  Simply clear the room of smoke instead.
 

Rebates and Discounts
Under most standard homeowners and even renters insurance policies today, having smoke alarms, carbon monoxide detectors and fire extinguishers in the home will qualify policyholders for rebates and discounts on their premiums.  Some newer homes now have sprinkler systems, and various municipalities around the U.S. are mandating their installation, depending on the square footage of the home.
 
In summary, installing dual-sensor smoke alarms and carbon monoxide detectors, as well as taking some common-sense precautions and performing regular household maintenance, will help keep your family safe from the destructive and potentially lethal effects of a house fire.  Schedule an inspection with your InterNACHI inspector to see where you can fortify your home against this threat.

Article submitted by:

by Nick Gromicko and Kate Tarasenko

Nick Gromicko, FOUNDER. 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  www.NACHI.TV

Tweet