Credit Unions Offer Up Unique Home Loan Products

Credit Unions Offer Up Unique Home Loan Products. Image courtesy of adamr / FreeDigitalPhotos.net

Credit unions are offering borrowers some creative home loan products compared to the more standard options at big banks, The New York Times reports. These member-owned nonprofit institutions don’t usually tolerate high-risk with their products, but they’re seeking unique products that may better cater to borrowers’ needs.

For example, Pentagon Federal Credit Union in Alexandria, Va., is offering its 1.2 million members a new 15/15 adjustable rate mortgage. It boasts a lower interest rate than 30-year fixed-rate loan, and the rate won’t change for the first 15 years. After that, it will adjust once, thereby setting the new rate for the final 15 years of the loan.

“This is an excellent opportunity for anybody who doesn’t think they’re going to be in the same house for 15 years,” says Craig Olson, Pentagon’s senior vice president of mortgage operations.

Another credit union, Redwood Credit Union based in the Bay Area of Calif., is offering a 5/5 ARM that adjusts only once after the five years. The rate remains fixed for another five years then. The rates also tend to be better than the 10/1, says Cynthia Negri, the chief lending officer.

One of the nation’s largest credit unions, Navy Federal, is offering its more than 4.5 million members interest-only loans, which include a set term where the borrower only pays interest on the principal balance. Navy also is offering the Homebuyer’s Choice Program, which is a program that offers 100 percent purchase financing.

“We have a lot of young, first-time buyers, and this is great for someone who’s not eligible for a Veterans Administration loan,” says Katie Miller, the vice president of mortgage lending.

Source: “Credit Unions Offer Creative Home Loans,” The New York Times (Feb. 27, 2014)

Online Applications for Mortgages Bounce Back

Online Applications for Mortgages Bounce Back. Image courtesy of David Castillo Dominici / FreeDigitalPhotos.net

After four weeks of big declines, applications for home mortgages, viewed as a leading gauge of future home sales, reversed course and ticked up 9.4 percent last week, the Mortgage Bankers Association reports.

“Purchase applications improved dramatically this week, the first hint of stabilization following a steady downward trend since January,” notes Ken Fears, the National Association of REALTORS®’ manager of regional economics and housing finance policy, on NAR’s Economists’ Outlook blog.

The MBA’s seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, increased 9.4 percent for the week ending Feb. 28. Refinancing applications rose 9.6 percent.

With both purchase and refinance application indexes showing improvement this week, “this pattern would suggest that the trend was driven by financial market improvements rather than a shift in consumer tastes or weather,” Fears notes on NAR’s blog.

The MBA reports that mortgage rates inched down last week, with the 30-year fixed-rate mortgage falling 6 basis points to a 4.47 percent average.

Source: “U.S. Mortgage Applications Rose Last Week: MBA,” Reuters (March 5, 2014) and “Latest Mortgage Application Data,” National Association of REALTORS®’ Economists’ Blog (March 5, 2014)

Buyers are taking note of proper grammar and spelling on real estate listings.  So WATCH YOUR LANGUAGE!

Buyers are taking note of proper grammar and spelling on real estate listings. Image courtesy of stockimages / FreeDigitalPhotos.net

Buyers are taking note of proper grammar and spelling on real estate listings — and they may just pass on those with bad spelling.

About 43 percent of 1,291 people surveyed say they would be less inclined to tour a home if its online listing contained misspellings or improper grammar, according to a new study by Redfin and automated proofreading site Grammarly. That also includes common listing ad ploys, such as writing in all caps and using too many exclamation points.

While survey respondents say photos were more important than a home’s description, 87 percent also say the description is either extremely or very important.

“When buyers are browsing homes for sale, everything about the listing has an impact on their experience,” says Chad Dierickx, a Redfin real estate professional in Seattle. “Photos grab your attention, but the listing description fills in the gaps by helping a buyer understand what photos can’t.”

The majority of respondents also say they prefer a home description of about 50 words. Shorter descriptions can have a bigger impact. Homes with descriptions that fit that length were found to be more likely to sell within 90 days and for a higher price, according to Redfin data.

Common Grammar, Spelling Offenses

The study notes some of the following grammar and spelling errors that can turn off buyers:

1. Misplaced letters or words that spellcheck won’t always catch. These misplaced letters or words can change an entire meaning of a sentence, such as in the following cases:
   — “Master bedroom with walking closet”
   — “Open trough Friday”
   — “Low grime area”
   — “This is a real germ!”
   — “Perfect home for smell family”
   — “Fresh pain and carpet”
   — “Miner work needed”
   — “Curve appeal”
2. Forgotten punctuation. Just forgetting one comma can drastically change the meaning of a sentence. Redfin cites the following example: “New construction won’t last” is quite different from the writer’s intended meaning, “New construction, won’t last.”
3. Writing in all caps and overusing exclamation points. THIS HOME IS A MUST SEE! NEWLY RENOVATED WITH NEWER ELECTRICAL AND BRAND-NEW ROOF! TRAVERTINE TILE AND HARDWOOD FLOORS!
4. Too many abbreviations. Home buyers may not be familiar with some abbreviations, and you could leave them confused. For example, a buyer probably has no clue what this means: “Spcs hm w/ EF, lg. FLR and FDR.” (Translation: Spacious home with entrance foyer, large formal living room and formal dining room.)

Source: Redfin

Is That Doggy Worth in Your Marketing?

Is That Doggy Worth in Your Marketing? Image courtesy of Bob Lowe / FreeDigitalPhotos.net

Many real estate agents use photos of themselves and their dogs to market their services, but there are several mistakes they must avoid when it comes to “doggy marketing.”

To avoid seeming all about themselves, agents shouldn’t put pictures of themselves or their dogs on their home pages, relegating them to the “about” page instead. And because consumers want to know what’s in it for them, agents also should avoid simply putting their dog’s picture on their marketing materials.

However, it is OK to incorporate dog photos when they align with what matters to sellers, such as highlighting an expertise in handling pet-related transaction issues.

Or agents can take their dogs with them as they roam the neighborhood to make themselves more approachable, and they can even dress their dogs in a company t-shirt. Additionally, agents can stress their passion for animals and meet like-minded prospects by volunteering for animal-related organizations or using Meetup.com to find or create face-to-face meetups with other dog lovers.

Source: “Doggy Marketing in Real Estate: Do’s and Don’ts for Agents,” Inman News (March 3, 2014)

More Jobs Are Heading West

More Jobs Are Heading West. Image courtesy of David Castillo Dominici / FreeDigitalPhotos.net

The Western region is leading the United States in job growth, benefiting from a strengthening housing market and bustling energy and technology sectors, according to IHS Global Insight. Seven of the 10 states with the fastest growing job markets this year are expected to be in the west. According to IHS, those are: North Dakota, Texas, Arizona, Colorado, Utah, Idaho, and Oregon.

“We expect 2014 to be the year when in-migration [to western states] picks up a lot,” says Chris Lafakis, economist with Moody’s Analytics.

The housing downturn had hit some Western states particularly hard, but many of those states are rebounding. For example, states such as Arizona and Nevada have worked through elevated levels of home foreclosures the past few years and are now seeing a rebounding residential construction sector that is helping to create thousands of new jobs, IHS notes.

Oregon has become a semiconductor manufacturing hub, and Arizona’s job growth is also being fueled by a growing technology base and an increase in tourism. Colorado and Utah are seeing an increase in oil and natural gas drilling as well as becoming budding high-tech centers.

Technology is increasingly allowing Americans to work remotely, and more residents are flocking to Western regions because “they’re just progressive, attractive places to live,” says IHS economist Jim Diffley.

Source: “West Leads in U.S. Job Growth,” USA Today (March 2, 2014)

How to Tell When a Neighborhood Will Be Hot

How to Tell When a Neighborhood Will Be Hot. Image courtesy of photostock / FreeDigitalPhotos.net

Bargain-hunting home buyers willing to purchase in an up-and-coming neighborhood can get a good deal and, as Trulia’s Michael Corbett says, “get in on the ground floor of appreciation.”

Here are five signs that a neighborhood is about to take off:

1. An up-and-coming neighborhood often is characterized by retail or residential construction that is already in progress.
2. They also often are found where trendy establishments, such as wine bars or farm-to-table restaurants, are opening.
3. Buyers also should look for neighborhoods adjacent to big cities or those where crime is on the decline.
4. Public building projects are on the rise.
5. Renovated homes are going on the market.

Source: “5 Signs a Neighborhood Is About to Take Off,” Fox News (Feb. 26, 2014) & realtor.org