With mortgage rates near a 50 year low why are there not more borrowers taking advantage of the low rates and refinancing?  With many borrowers able to drop their rate by a full percentage point, and more than half able to drop their rates by three-quarters of a point it would seem the time is right.  It seems with house values plummeting and incomes falling equally as fast that a full percentage point (or even three-quarters) would be the thing to turn things around for many home owners in need.

Tightening credit restrictions, sky rocketing fees, and lacking equity, that’s not going to happen.

In 2008 Fannie Mae and Freddie Mac began instituting fees that, even for borrowers with good credit could face fees equal to 1% of the loan amount, or more.

On Monday the Obama Administration extended a year long program started in April to help borrowers who owe between 80% and 105% of the value of their home to refinance.  In September that program grew to include borrowers who owe up to 125% of the value of their homes.  The plan was thought to save millions when first launch, but less than 2,000 home buyers have taken advantage.

The Administration is looking into creating additional help for home owners in need.

Have you had a similar experience with securing refinancing?  Do  you know someone who has?  If you have any questions about any of the information feel free to contact us or feel free to discuss!

An article on The Wall Street Journal Online is discussing Harvard plan to sell up to $500 million in real estate assets.  Although Harvard’s endowment has approximately $5 Billion in real estate and future commitments to the properties.

Here’s an excerpt from the article about the losses posted and a little on the plan to sell:

Harvard’s own real-estate portfolio “suffered a loss of over 50%” for the fiscal year ended in June, according to a September report from Jane Mendillo, head of the company that manages the endowment, the nation’s largest. Harvard’s endowment posted miserable overall returns last year, declining 27.3% for the year that ended in June.

In November, Harvard began marketing a portfolio of stakes in more than 30 real-estate funds, ranging in size from $50 million to $500 million through Credit Suisse Group, according to several secondary-market buyers and intermediary firms familiar with the offering.

Some of the largest commitments are with real-estate-investment companies such as Beacon Capital Partners, Lubert Adler, Lone Star Funds and Westbrook Partners, according to documents reviewed by The Wall Street Journal. Close to 60% of the funds are in North America, but there are also a number of commitments with real-estate companies in Europe, Asia and South America, according to the documents. A spokesman for Credit Suisse declined to comment.

I really do not see this as a surprise at all.  Last year was not a great year for many investments at all, and really to see a 50% loss on real estate values isn’t as bad as some have seen.  Losing 27% of the total endowment is a strong blow, but when you have an endowment the size of Harvard’s (currently $26 billion) you generally have some room for ups and downs.

The Article states Harvard Yard is not for sale, but I am very interested in the price it would fetch.  I would also be interested in knowing if it’s true that everything is for sale, for the right price.

Taking a look over at Bloomberg.com we see Fannie Mae will be seeking 15.3 billion in aid after their 10th straight quarterly loss.  This is coming shortly after the Treasury lifted a $200 billion dollar bail out limit on Christmas Eve and has decided to back them unlimited until 2012.  Smaller rival to Fannie Mae, Freddie Mac saw a much smaller negative last quarter and will not be seeking additional aid from the government.  Fannie Mae’s net worth is currently at around negative $15 Billion.

Both sides of the political spectrum have been arguing about how to fix the housing crisis.  Should we continue to fund a company with 10 consecutive quarters of huge losses with tax payer money?  Should the system be totally overhauled?  Should Fannie Mae, Freddie Mac and other similar institutions be shut down and become a thing of the past?  If so, what will replace them?  How can we bring the same security of home loans and still have funds available for potential home buyers?

Another interesting blog find over at The Wall Street Journal debating on whether on not home buyers should wait until after the April 30th deadline.  I know you’re probably thinking, “Why is that even a question?”  The article mentions some evidence that in the last weeks of the tax credit an increase in demand has been created with home buyers looking to take advantage of the “deal” that is the Tax Credit.  In certain markets this can create inflated home prices as well as bidding wars for certain properties driving the prices up higher than the $8,000 credit you’ll receive.

What do the readers think?  Have you noticed any spikes in prices in certain areas?  Do you think it’s a good idea to wait?

Interesting article on Boston.com reporting that in Massachusetts the average single family home price is almost 10% (9.6%) to $285,000.  Sales volume in Massachusetts is up 11.6%.

Timothy M. Warren Jr., chief executive of the Warren Group had this to say:

“We had surprising gains in January, and that’s good news for the economy and that’s good news for the housing market.  The real wild card is what will happen after mid-year.’’

Some believe the increase in pricing and volume is happening because of the tax credit that will be ending in April, as well as the artificially low interested rates.

Economic analyst will wait until at least midyear to make a more accurate assessment on the market.  Just last week the Fed raised the discounted interest rate from .5% to .75% which was shocking to some, but believed by many to be a step towards normalcy.

What do you think?

Its not all bad news out there……

“Sure, there was a lot of sound (the housing bubble grows) and fury (the bubble pops) in the last decade.  But numbers released this morning show that home prices rose by 46% between January 2000 and December 2009.  That’s way above the rate of inflation.  So odds are if you bought a house at the beginning of the decade and sold it at the end of the decade, you made money.  That’s a big deal, given how many people (who don’t wind up as anecdotes in news stories) buy a house and live in it for 10, or 20, or 30 years. ”

http://www.npr.org/blogs/money/2010/02/house_prices_rose_50_in_the_au.html?ft=1&f=93559255

This week (ending Jan 22nd) the average 30-year fixed-rate mortgage dropped to 4.99% from last week when it was at 5.06%.  30-year fixed-rate mortgages at the same time last year were 5.12%.  This is great news for potential home buyers as this 3 week in a row drop is great when paired with the Tax Credit for new home buyers that is being offered until April of 2010.

Today Barney Frank said he looks to abolish Fannie Mae and Freddie Mac saying, “The remedy here is, as I think the committee will be recommending, abolishing Fannie Mae and Freddie Mac in their current form and coming up with a whole new system of housing finance,” said Frank, chairman of the House Financial Services Committee. “That’s the approach, rather than the piecemeal one.”

Frank, along with the rest of The Financial Services Committee, is just starting its work on the issue and plans to move slowly. The committee’s first step is to talk to groups like the Center for American Progress and the National Association of Realtors, both who have prepared documents with reccomendations for the overhaul.

David Min, an associate director for the Center for American Progress, said that whatever new structure the mortgage lenders would take, any entities receiving government backing would need to be more heavily regulated to limit risk, with greater product restrictions on mortgage-backed securities and higher capital than what Fannie and Freddie had. The Center argues that reforms should apply to both public and private markets.

You can read more on Boston.com:  Barney Frank to Abolish Fannie Mae and Freddie Mac

As we mentioned before, it is never too early to start looking for your next apartment. The sooner you start looking, the better the chances you are going to find that perfect place for you to call home for at least the next year. Take a look at the following places and give Proper Realty Group a call today to schedule a showing!

Read the rest of this entry »

S&I To Go is easily one of the Proper staff’s favorite places for lunch.  Even though “To Go” is in the title, often times we prefer to eat in the quaint restaurant on Brighton Avenue.

The Lunch Special is really what has us hooked.  You can choose a soup, appetizer and entree for only $6.50.  You will not be able to find a better deal on authentic Thai food (See menu link below for more details, I personally enjoy the Wonton Soup, Chicken Wing, Drunken Fried Rice combination).

Best of Boston

Best of Boston had this to say about S&I:

Notwithstanding the beef tendon fire pot at Montien (still the hottest soup around, in both senses of the word), this unassuming Allston 12-seater is your first-class ticket to Bangkok. The Thai-language menu is filled with enough mild-mannered fare to sate even the most uninitiated of palates, while devotees can delight in rare finds like crispy double-fried catfish laced with whole sprigs of fresh peppercorns and volcanic som tums flavored with raw salted crab.

Although lunch is where S&I To Go really shines, it is truly a great value at any time.  The convenient location and delivery availability only make dining in or out an even easier decision.

To learn more about S&I To Go as well as to keep up with ongoing promotions make sure and visit the S&I Facebook page and the S&I Twitter.

Take look at the menu for S&I To Go and follow the map for quality, affordable and authentic Thai food!

View Larger Map

Living in Kenmore Square is one of the most convenient-to-everything places to live in Boston.  You’re close to campus if you’re a student, a short ride to downtown, and near the Mass Ave Bridge to Cambridge.  There is no shortage of bars, restaurants, and things to do in and around Kenmore Square.  Make sure to run by these spots if you’re new to the area.

Read the rest of this entry »