VA Loan Information Center

Is The “Perfect Storm” In Real Estate Coming To An End?

Alan — Mon, 14 May 2012 20:07:46 +0000

Is The "Perfect Storm" In Real Estate Coming To An End?

For a long time the news was full of stories about residential real estate values and the downward spiral they were in.

Things have changed recently and the news is becoming full of stories about real estate prices stabilizing and starting to rise and how houses listed for sale are now receiving multiple offers with escalation clauses.

It appears the the "Perfect Storm" in real estate with a combination of low home prices and low interest rates is coming to an end.

Recently The Washington Post ran an article titled "How to buy a house in D.C.’s sellers’ market" The article states "Sellers are in heaven; buyers are feeling the stress. These days you can go to any open house of a home in good condition in a desirable neighborhood, and you’ll find you’re one of a steady stream of potential buyers. Sleep on it before making an offer? Too late; houses that are in good condition and well-located (especially walking distance to Metro or major bus routes) are under contract in one to two days."

Home prices in many area have started to stabilize and some are even showing appreciation. Now a recent article in USA Today is predicting that home prices will start rising 4% per year for the next 5 years.

In another recent Washington Post article stated that "Home prices increased by the greatest amount over the past year since 2006, according to a report released Thursday by Real Estate Business Intelligence.

“Pricing in the D.C. metro area continued recent positive trends with a year-over-year median sale price gain of 11.2 percent, the highest annual gain in more than six years,” the firm reported. RBI suggests this might mean all the talk of a shadow inventory of to-be-foreclosed homes didn’t impact home prices much."

Here's what huffingtonpost.com said recently "Rising Home Prices: Coming to a Market Near You." "Not only are rising prices starting to look like a real trend, they're also coming to a market near you -- if they haven't already. Asking prices increased year-over-year in 44 out of the 100 largest metropolitan areas, with Miami and Phoenix leading the charge." Bethesda-Rockville-Frederick, MD was listed as number 9 in Top 10 Metros With Largest Price Increases.

Again, back to The Washington Post in an article titled "House hunters find it’s a jungle" stated that "For in-demand properties, bidding wars are common. For Redfin’s listings, 53 percent of homes for sale had multiple offers in D.C. last quarter, while in an area such as Atlanta, that only happened 31 percent of the time."

So what does this mean to home buyers looking for their first home or for people looking to move-up? Now may be the time to get off the fence and into the market.

Home prices are stabilizing and starting to move up and mortgage interest rates are at historic lows. You can't expect interest rates to stay this low for long. With rising rental rates it appears to be a god time to buy a home.

What do you thing? Leave your comments below.

Your source for VA loan information.

My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.

Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388

What’s A Picture Worth In Real Estate Sales? Facebook Thinks Pictures Are Worth $1 Billion!

Alan — Wed, 11 Apr 2012 13:16:21 +0000

What's A Picture Worth In Real Estate Sales? Facebook Thinks Pictures Are Worth $1 Billion!

You've probably seen the news. Facebook bought Instagram for $1 Billion. Now this is company that has 12 employees that was started in 2010 and has no revenue. So what's worth $1 Billion. Instagram allows pictures to be shared on a number of social networking services.

Why is this important in real estate? With more and more people starting their home searches online it's important to present the home for sale in the best possible light. And this is done with pictures.

Earlier this year using pictures online was discussed on The Today Show. I don't agree that you have to spend $300 - $400 for pictures. I've seen some excellent pictures and videos that were done by real estate agents with inexpensive digital cameras.

Single Property Websites that feature a home for sale are a great way to let potential buyers see a home. Below is a sample of the web site system I use to help sell homes. These sites are available to real estate agents and For Sale by Owner properties.

Click on Sample Site or the picture below to see my demonstration Single Property Website.

Another good use of pictures in a video featuring the property for sale. Here's one I did recently for a home in Bethesda, MD.

So, what to thing the value of a picture is worth in the sales of real estate? You know Facebook's betting their worth $1 Billion!

Your source for Conventional, FHA and VA loan information.

My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.

Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388

Thinking of Buying a New Home? Why Wait? Residential Real Estate Is Ready to Recover!

Alan — Tue, 03 Apr 2012 14:14:52 +0000

Thinking of Buying a New Home? Why Wait? Residential Real Estate Is Ready to Recover!

The news in residential real estate hasn't been good for the past few years but things are starting to change.

If you've been sitting on the sidelines thinking about buying a new home now may be the time to jump into the game.

A recent article on CNBC.com was titled D.C. Housing Market One of the Strongest. The article states "Kevin McManus wanted to sell his North Arlington, Va., home back in January, but his real estate agent suggested he wait until spring. McManus listed the home on March 13th, and it sold seven days later — right on the vernal equinox.

"The D.C. Metro-area housing market is slowly improving with rising sales activity and stabilizing prices," says Jonathan Miller, a real estate appraiser and consultant. "The sharp drop in inventory over the last six months and rise in contracts has helped keep prices firm."

The median price of an area home was up 6 percent in February from a year ago to $317,900, according to Miller, who puts out a monthly report. That's about twice the price of the national median existing home and is the biggest year-over-year gain for the corresponding period in 2007-08.

Pending home sales were up in February from sales in February 2011 while the active inventory has decreased during the same period.

"We have seen a steady increase of consumers testing the waters of the housing market, thanks to increases in median sale price, quickly selling homes and historically low interest rates," says Jeffrey S. Detwiler, president and CEO of Long and Foster. "These dynamics continue to drive positive momentum in the residential real estate market throughout Washington, D.C."

The Street.com is also seeing improvement in the residential real estate market. In a article titled Residential Real Estate Is Ready to Recover "The housing market's shadow inventory of unsold homes is starting to clear, certain areas of the country are experiencing signs of more robust activity, and, despite low levels of new-home production (based on historical data), homebuilders are even regaining pricing power in several geographic regions."

The article went on to say "Stated simply, the U.S. residential real estate market is about to launch a broad and sustainable multiyear recovery. And, from my perch, the share price strength in housing-related equities is telling the real story of an improving and self-sustaining home market that could continue through the balance of this decade."

Here are 7 reasons stated in the article to expect a durable recovery (in demand, activity/transactions and in prices) in the U.S. housing market:

Housing affordability is at a multi-decade high.
Reflecting normal U.S. demographic trends (household formations of 1 million-plus per year) and a low level of 2008-2012 new-home production, there is plenty of pent-up demand ready to be unleashed.
As rental prices have risen and as home prices have fallen, the economics of home ownership has improved.
We have seen a decisive improvement in the jobs market.
Mortgage rates are at historic lows.
Housing surveys have turned positive.
Confidence is improving.

The Washington DC area was ranked in the Top Ten U.S. Cities Where Homes Sell the Fastest.
The "Perfect Storm" in real estate with a combination of low home prices and low interest rates in slowly coming to and end. The cost to purchase and home is going to rise.

If you've been sitting on the fence, isn't it time to jump off and get into the game?

Your source for VA loan information.

My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.

Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388

Military Kids Can Apply for Free Summer Camps

Alan — Sat, 24 Mar 2012 16:41:25 +0000

Military Kids Can Apply for Free Summer Camps

With the temperature rising and the school year drawing to a close, parents across the nation are starting to think about summertime plans.

Military families can get a head start on their planning today by applying for the National Military Family Association’s Operation Purple Summer Camp program. The nonprofit organization launched this free program nine years ago to support military children, ages 7 to 17, dealing with the stress of war.

The weeklong camps are open to military children of all ranks and services, both active and reserve. Officials will give priority to children who meet the association’s deployment criteria and have never attended an Operation Purple camp. Families should submit their application by midnight EDT on April 19. To find out more about the camps and to make application go to: 2012 Operation Purple Camps.

The goal of the Operation Purple camp program is to give military children tools to help deal with the stresses that result from a parent’s deployment, through a memorable camp experience in a “purple” environment.

At Operation Purple camps, military children experience an exciting week of outdoor fun and adventure.

This summer children will attend an Operation Purple camp at one of 16 locations in 14 states: Alaska, California, Connecticut, Florida, Hawaii, Indiana, North Carolina, New York, Oregon, Pennsylvania, Tennessee, Texas, Washington and West Virginia.

Here's a list of Frequently Asked Questions.

The Operation Purple program was created in 2004 in response to the call from military parents to "help us help our kids." The mission of the Operation Purple program is to empower military children and their families to develop and maintain healthy and connected relationships, in spite of the current military environment. We do this through a variety of means, including the healing and holistic aspect of the natural world. The program is joint or "purple"— and open to children and families of active duty, National Guard or Reserve service members from the Army, Navy, Air Force, Marine Corps, Coast Guard, or the Commissioned Corps of the US Public Health Service and NOAA.

Since its creation in 2004, the Operation Purple program has grown to serve approximately 45,000 military children and teens. The Operation Purple program also includes family retreats at national parks and specialized family camps geared to address the needs of children and families of our nation’s wounded service members.

If your kids are into Ice Hockey you may want to look into Defending The Blue Line Keeping Military Kids On The Ice.

"Defending the Blue Line has experienced tremendous success by providing equipment for the kids, grants to help pay their association fees, summer hockey camps and NHL game tickets so the whole family can go enjoy a pro-game before or after a deployment," says President and Founder of Defending the Blue Line, Army Sgt. Shane Hudella.

Named after the line that marks the start of the defensive zone in hockey, "Defending The Blue Line" was created in 2009 by a group of active duty soldiers.

The program helps military families offset the expensive costs of having their children in a hockey program while their mom or dad is overseas.

Your source for VA loan information.

My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.

Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388

Is Your Computer Slow? | Are You Having Problems Updating Java?

Alan — Mon, 27 Feb 2012 22:10:11 +0000

Is Your Computer Slow? | Are You Having Problems Updating Java?

A few weeks ago I had a virus problem so I downloaded an updated version of Norton 360 to cure the virus. My desktop computer had also been running slow. It's almost 3 years old and I started looking into a new computer.

I do a lot of webinars on the GoToWebinar platform. Recently when I went to sign on it kept prompting me to update JAVA. I was not able to get the updated download completed.

I thought the problem may have been caused by the new Norton install so I decided to uninstall JAVA on the computer and start with a fresh install. I ran into a problem. The Windows uninstall program wouldn't let me uninstall JAVA.

So I went to that secret site known as Google and searched for uninstall software. After looking at several options I decided to try IObit Uninstaller 2. It got good reviews and best of all it was FREE.

The IObit Uninstaller 2 not only uninstalled JAVA but it also went deep into the bowels of my computer and uninstalled a lot of trash associated with JAVA that had build up over the years. To be on the safe side I shut down the computer and rebooted it.

After rebooting I deleted the previous version of JAVA in my download folder and installed a fresh copy of JAVA. The install went smoothly with no problems. Again, to be on the safe side I shut down the computer and rebooted it.

Now here's where the surprise came in. All of a sudden the computer was running fast again. It seems all the trash from the old versions of JAVA had been slowing it down. The thought of buying a new computer went out the window.

And, today I went to a webinar on GoToWebinar. I had no problems getting signed in.

I repeated the above steps with my laptop and had the same results.

So, if your computers been running slow and/or your having problems with JAVA see if this cure will work for you.

Your source for VA loan information.

My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.

Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388

HARP – Home Affordable Refinance Program Is Almost Ready To Help Homeowners Who Are Underwater With Their Mortgages

Alan — Fri, 24 Feb 2012 00:33:22 +0000

HARP - Home Affordable Refinance Program Is Almost Ready To Help Homeowners Who Are Underwater With Their Mortgages

What HARP 2.0 Means for Homeowners

The government touted its Home Affordable Refinance Program (HARP) as a way to get the crumbling housing market on the road to a quick recovery and provide much-needed relief to struggling homeowners. Launched in March 2009, HAMP was supposed to help millions of homeowners get out from mortgages that were worth more than the house-- but to date, critics say it has fallen short of expectations. Now the government has refined the program, known as HARP 2.0, in an effort to assist the millions that need a lower mortgage bill.

“HARP has been around for a couple of years but hasn’t been that helpful to that many people,” says Bob Walters, chief economist at Quicken Loans. Many people that needed the help couldn’t qualify, he adds.

To qualify under the original HARP program, your loan-to-value ratio had to be less than 125%-- but for many struggling homeowners, their home value fell significantly below that, freezing them out of HARP. To be eligible for HARP 2.0, people need to have a home valued at less than their mortgage, and the loan has to be with Fannie Mae or Freddie Mac. The mortgage has to be in good standing, and homeowners need to have a good payment history for the last 12 months. The new HARP program will expire at the end of 2013.

To be eligible for the HARP program, your mortgage must be held by either Fannie Mae or Freddie Mac. To "look up" your mortgage, check the Fannie Mae or the Freddie Mac eligibility sites.

You can find out if you are eligible for HARP by using the HARP Eligibility Calculator.

The original HARP program was geared toward the five biggest loan servicers Citigroup, Wells Fargo, Bank of America, Ally Financial and JPMorgan Chase, which limited the amount of loans that could get refinanced, according to Walters. This new plan includes mortgage companies across the country; these new servicers can now qualify a borrower for a HARP loan even if the borrower’s previous loan had mortgage insurance attached to it. According to Walters, this process was extremely difficult for non-servicers in the past. Mortgage insurers, which have to sign off on a refinancing for customers that have mortgage insurance, are currently working with lenders to develop a process that lets the mortgage provider and the insurer share information to streamline the process. When that happens, Walters says more people will see HARP loans get approved.

In December as part of HARP 2.0, pricing changes went into effect that lowered the costs to HARP borrowers. Coming in March, borrowers with loan values exceeding 125% will also be eligible for HARP. While in theory the loan to value could be unlimited, Walters says companies are still going to be cautious about lending to people with high loan to value ratios even though Fannie Mae and Freddie Mac are taking on the risk. “There’s been so many defaults and nobody wants to foreclose,” says Walters.

The government is also hoping to make the approval processes quicker by eliminating, in many cases, the need for an appraisal.

For homeowners with a service provider that doesn’t offer the HARP program don’t give up.

“If you get an unsatisfactory answer don’t stop, call someone else,” says Walters. “People shouldn’t assume the first no means they can’t get help.

Read more: Fox Business - The Power to Prosper.

Your source for VA loan information.

My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.

Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388

How To Get Free Tax Preparation and Filing For Military Members?

Alan — Sat, 04 Feb 2012 17:17:48 +0000

How To Get Free Tax Preparation and Filing For Military Members?

It's tax season again. Did you know there's free help for military members in the preparation and filing of their tax returns?

The military's tax assistance program processes more than 200,000 returns each year, Army Maj. John Johnson, director of the Defense Department's Armed Forces Tax Council, said during an interview with Pentagon Channel and American Forces Press Service reporters.

"It is just one of the benefits military people have," Johnson said of the program. Participants can visit their installation tax center for free assistance in filling out tax returns, he said, or access the Military OneSource Web site, www.militaryonesource.com.

"You can log on there, online, and also file for free," Johnson said of the Web site. The online tax-filing system on Military OneSource is closed to military retirees, however.

The is part of the H & R Block At Home® program. To get the free tax return preparation you must to start your return from the Military OneSource H&R Block At Home® link. Once you click the link you will be required to log in to Military OneSource. From the login page you will be directed to a site containing additional information on tax preparation, including the link to the Military OneSource free H&R Block At Home® service.

Through the Military OneSource program, you can complete, save and file your 2011 Federal and up to three State returns online for free with the H&R Block At Home® tool.

If you have questions about this tax service or about preparing your own tax returns, please call 1-800-342-9647 and ask to speak with a Military OneSource tax consultant. Trained tax consultants are available 7 days a week from 7 a.m. to 11 p.m., EST.

Do not go directly to the H & R Block website. You will not get the free service there. Go to: Military OneSource H&R Block At Home® link

You can also get free tax service at most major military bases through the Volunteer Income Tax Assistance (VITA) program. Participating VITA sites provide free tax advice, tax preparation, and assistance to military members and their families. Most importantly, they are trained and equipped to address military specific tax issues such as non-taxable military income, tax-free zones, tax deadline extensions for military members, out of state residency issues, and more. To top it off, the work is usually signed off on by a CPA before it is filed.

Your source for VA loan information.

My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.

Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388

What’s In The President’s Plan To Help Responsible Homeowners and Heal The Housing Market?

Alan — Thu, 02 Feb 2012 19:27:18 +0000

What's In The President's Plan To Help Responsible Homeowners and Heal The Housing Market?

I make my living in the housing industry. The whole country has suffered the past few years because of the problems created by the mortgage mess. The housing industry is still struggling to get back on it's feet.

In his State of the Union address and in subsequent speeches President Obama has been talking about his "Blueprint for an America Built to Last."

I got a copy of the plan to see what it is all about. To see a copy click on:

President Obama's Plan to Help Responsible Homeowners and Heal the Housing Market

While I want as much as anyone for the housing market to come back reading the plan I have to wonder if it's a plan for recovery or a political document to help with getting elected.

A big talking point has been the Homeowner Bill of Rights.

The first two points are:

Access to a simple mortgage disclosure form, so borrowers understand the loans they are taking out.

In 2009 the government designed and mandated that the lending industry use the current Good Faith Estimate now given to borrowers. I took hours of classes learning to complete it correctly and real estate agents took hours of classes learning the new HUD1 form. I'd welcome a simple form but blaming the industry for the current confusion is just wrong.

Full disclosure of fees and penalties.

It seems they don't know they also passed legislation holding lenders responsible for the fees that are disclosed to a borrower at application. A lender is financially responsible for under disclosingfees (even fees they don't control) including those charged by title companies and state and count recording fees. Anyone who has been to a settlement is familiar with "Charges That Cannot Increase, Charges That in Total Cannot Increase More Than 10% and Charges That Can Change."

The plan also calls for Moving the Market to Provide a Full Year of Forbearance for Borrowers Looking for Work.

Now don't get me wrong. This crisis has created a lot of pain for a lot of people and they need help. But is letting them not pay their mortgage for a year a solution to the problem or are we "kicking the can down the road" for someone else to worry about.

Who hasn't heard Congress and the President rail against the abusive loans that caused the crisis. (A side note: all the loan types weren't bad. They just got to liberal in underwriting and approving them)

The plan calls for Providing Non-GSE Borrowers Access to Simple, Low-Cost Refinancing. It has been proposed that "The refinancing program will be open to all non-GSE borrowers with standard (non-jumbo) loans who have been keeping up with their mortgage payments. The program will be operated through the FHA."

Simple and straightforward eligibility criteria. Any borrower with a loan that is not currently guaranteed by the GSEs can qualify if they meet the following criteria:

* They are current on their mortgage: Borrowers will need to have been current on their loan for the past 6 months and have missed no more that one payment in the 6 months prior. (Sounds reasonable to me.)

* They meet a minimum credit score. Borrowers must have a current FICO score of 580 to be eligible. Approximately 9 in 10 borrowers will have a credit score adequate to meet that requirement. (If you want to get a new loan most loan programs want a minimum 640 FICO score. By meeting certain criteria you can lower the FICO score to 620.)

Streamlined application process: "To determine a borrower's eligibility a lender need only confirm that the borrower is employed." (Sound's like the no-doc or no-income loan they have said were bad and don't allow any more.) "Those who are not employed may be eligible if they meet other requirements and present limited credit risk." (I'd love to know what those requirements will be.)

The program will be funded by "Creating a separate fund for new streamlined refinancing program. This will help FHA better track and manage the risk involved and ensure that it has no effect on the operation of the existing Mutual Mortgage Insurance (MMI) fund." (So were taking loans that were made in the private sector and giving them a government guarantee and if they lose money well take it out of the left pocket instead of the right pocket? To me a loss is a loss)

Now to pay for the program the Refinancing Plan Will Be Fully Paid For By a Portion of Fee on Largest Financial Institutions: The Administration estimates the cost of its refinancing plan will be in the range of $5 to $10 billion, depending on exact parameters and take-up. The cost will be fully offset by using a portion of the President's proposed Financial Crisis Responsibility Fee, which imposes a fee on the largest financial institutions based on their size and the riskiness of their activities - ensuring that the program does not add a dome to the deficit. (And do you thing "the largest financial institutions" are going to absorb that fee or is it more likely to be passed on to all consumers through higher fees and other cost. Are you aware the "Two month tax holiday passed in December is being paid with higher fees being charged by Fannie Mae, Freddie Mac and FHA. The new fees will be in effect for 10 years to pay for a 2 month thx holiday.)

I've been getting a lot of questions about HARP2 refinancing program which was announced in November. It's my understanding that the automated engines used to underwrite these loans will be ready in mid-March. I still an waiting to get details of what the requirements will be.

I'd love to hear your feedback on the proposed Plan To Help Responsible Homeowners and Heal The Housing Market.

Your source for VA loan information.

My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.

Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388

Home Prices and Affordability – Is Now The Time To Consider Buying A New Home?

Alan — Tue, 17 Jan 2012 20:39:52 +0000

Home Prices and Affordability – Is Now The Time To Consider Buying A New Home?

There's been a lot of news over the past several years concerning problems in the housing market, the mortgage industry and the economy. There still a lot of concern about when the market will turn around and start to recover.

I've been saying for the past 6 months or so that we have been in the "Perfect Storm" to buy a home with the combination of low home prices and low interest rates. It seems that the storm is starting to subside. Home prices in many markets are starting to show appreciation.

A recent report on CNBC it was reported that the National Association of Realtors (NAR) Pending Home Index jumped 7.3% in November after jumping after jumping 10.4% in October. (See the news clip below)

A recent issue of "Housing Predictor" has an article titled "Home Affordability Reaches 1971 Level". The article stated "Homes are more affordable to purchase than they have been since 1971 as a result of falling home prices, according to the U.S. 1970s House Department of Housing and Urban Development (HUD). Despite record low mortgage rates, the downward trend in home values is sustained in the majority of the U.S." It went on to say "With interest rates at historically low levels and markets across the country beginning to improve, homeownership is within reach of more households,” said Bob Nielsen, chairman of the National Association of Home Builders."

HSH.com has identified 5 Cities Poised For a Housing Pop. The Washington, DC metropolitan area is included in the list. For the Washington area the site says "A favorite large metro of Fox’s, the Washington, D.C. metro area encompasses two states (Maryland and Virginia) as well as the District of Columbia. With a median home price of $294,800, some experts believe home prices may drop by a percentage point or two in 2011. Expect small price gains--a percentage point or two--in 2012. Key to this metro is that the economy is driven by the federal government, which seems poised for continued growth. Unemployment in the metro is a very low 5.4 percent. The one negative: a cost of living that is well above the national average."

Moneyland.Time.com also looks at the Washington, DC metropolitan area in favorable terms. There recent post "The Real Estate Market that Defies the Trends" said "But in Washington, D.C., housing prices are up a smidgen (0.3%) from the previous month. More importantly, year-over-year prices have risen by 1.3%, a continuation of a happy trend in which prices increased by 2.6% from the year before that. When comparing housing markets in America’s big cities, D.C. appears to be having the strongest and steadiest recovery."

In an earlier article Moneyland.Time.com says that "Home Affordability Near Highest Level in 20 Years" The article states "As a result, families earning the median income of $64,200 could afford 72.9% of the homes sold in the third quarter. (Another reason I like this statistic is that it’s calculated using actual sales prices of new and existing homes, not list prices). That 72.9% is in real contrast with the way things looked five years ago during the boom, when the number dipped to 40.4%. Housing market bulls read the current high affordability number as a sign that there is buying power to bring the real estate market out of its slump, at least at current prices."

Last June Kiplinger.com wrote an article titled "Who Benefits From Affordable Homes?" The article stated "For many young adults, I believe this will turn out to have been a good time to buy a house or condo." It went on to say "But for many young adults who intend to stay put for several years, have good prospects of employment security and can qualify for a plain-vanilla fixed- rate mortgage, I believe this will turn out to have been a good time to buy a house or condo. And if the young home buyers are handy with tools and can find a fixer-upper at a great price, so much the better."

You might find the video Purchasing Power vs. Home Prices interesting:

And rents aren't getting any cheaper. According to USA Today "Apartment Rents Heading Higher for 3rd Year in a Row." According to the article "Apartment rents are expected to jump again this year as the U.S. economy creates more jobs and demand for rental housing grows. A 2012 increase would make the third straight year of rising rents. More annual increases are expected as apartment builders hustle to catch up with demand.

Here's a look at what CNBC.com has to say in a post titled "Renter Nation Rages On As New Reality". "Higher quality properties in the most desirable locations posted rent gains in excess of 5-10 percent, while class B/C properties, catering to lower income tenants, found it relatively more difficult to raise rents,” notes Victor Calanog, head of research at Reis.

Nowhere is that more evident than in the Washington, DC metro area where rents are way up across the city, and developers are rushing to erect new multi-family buildings and rehab old ones."

It went on to say "“Everybody wants to be in DC,” beams Richard Key, district manager for Camden Property Trust, one of the largest publicly traded multifamily REITs in the nation. “Whereas in other markets there are deals, when you get to DC area, all the REITs want to be here, and so we're all competing for the same piece of land, and that's driving the price up. That is really is a challenge for us.”

Key is convinced that there has been a fundamental shift in attitudes toward home ownership that will last for several more years. He is not concerned that the pendulum will swing back to buying, just as all that new rental stock hits the market around 2014. Camden has seen rents on its DC properties rise over 5 percent in just the past year.

So, are you thinking about buying your first home or moving up to a new home and have been waiting to see the bottom? Now may be a good time to jump off the fence and get into the game!

Your source for VA loan information.

My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.

Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388

Why Are Mortgage Interest Rates Going Up? It’s Not What You Think!

Alan — Fri, 13 Jan 2012 15:33:55 +0000

Why Are Mortgage Interest Rates Going Up? It's Not What You Think!

Remember last month when President Obama and Congress were arguing over extending the Payroll Tax Cut?

Did you hear anything in the news about how the Payroll Tax Cut was going to be paid for? Probably not.

Guess where the money to pay for the tax cut is coming from? If you guessed the housing and mortgage industry and specifically people borrowing money through Fannie Mae (Fannie), Freddie Mac (Freddie) and the Federal Housing Administration (FHA) you would be right.

As everyone knows the housing market has been struggling. This new legislation has imposed what is in essence a tax on every borrower who gets a loan that is guaranteed through Fannie, Freddie or FHA.

In an article titled Washington Wades Deeper into Housing Bloomberg Businessweek said that "An 11th-hour extension of the payroll tax cut, signed into law on Dec. 23, will for the first time divert funds from Fannie Mae (FNMA) and Freddie Mac (FMCC), the two mortgage finance companies under U.S. conservatorship, to pay for general government expenses."

The increased costs are also being passed along to borrowers who get FHA loans. OurBroker.com recently published an article "FHA Mortgage Insurance Premium To Rise In 2012"

Here's a recent recent commentary by Brian Stevens and Frank Garay of THINKBIGWORKSMALL:

Effectively, that means that all Conforming loans will increase almost 0.125% in interest rate. With FHA you will see and increase in the Mortgage Insurance Premium (MIP). It could be in the monthly MIP, Upfront MIP or both.

It's been estimated that it will require 10 years of the increase in rates to pay for the two months of benefits provided by this "Payroll Holiday."

So, the temporary decrease in the payroll tax was supposed to help the middle income American taxpayer. Looks to me like the government just dipped there hands in their pockets without telling them. And whens the last time you saw a temporary increase in fees get rescinded. It seems once they get on the books they never go away!

I'd like to know what you think. Please comment below.

Your source for VA loan information.

My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.

Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388