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We are heading into 2013...
Thank you and welcome to the December 2012 issue of KimKproperties Newsletter. For more information within each topic please feel free to use the underlined links.
Nationally 2012 saw lower than average inventory levls; continuous through the year we saw amazing record-low interest rates; National Flood Insurance Program has been extended through 09/30/2017; FHA revised condo rules for loan applications to allow as much as 50% of the space devoted to commerical use, up from 25% (condo-to-commerical ratio) and 2013 may be the year that the FHA relaxes the 'at least half the condo units must be owner-occupied' rule; and of course we saw the presidential elections and their individual strategies to stregthen the housing market.
On a postive year-end note, consumer's confidence in housing(confidence index) increased to 73.7 this month, compared to 73.1 from last month, climbing to a four-year high.*
*MHopkins, HousingWire News
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APR? Quoted Interest Rate? Locking-in?
...Be an Informed Buyer
Whether you are a first time home buyer or a seasoned real estate investor, knowing and understanding what to look for when shopping for a loan is an important facet of the real estate transaction. It's not everyday that we talk in terms of locking-in, and APRs.
Your quoted interest rate vs APR (annual percentage rate): Don't confuse the APR with your quoted interest rate. Your quoted interest rate (those rates we have been seeing in the record lows) is used to determine your monthly principal and interest payment. The APR reflects the cost of your mortgage loan as a yearly rate. The APR will be higher than the interest rate stated on the loan because it includes (in addition to the interest rate) loan points, fees, and mortgage insurance.
What is locking in a rate? It is when a mortgage applicant chooses to lock in a certain interest rate to secure that interest rate through to closing. There are time restraints on locking in a rate however (60 days, 90 days, e.g.) and this is best determined by speaking to a home mortgage lender. On the opposite side, mortgage applicants will instead choose to float the rate and not secure a rate lock, and allow the interest to fluctuate until the applicant decides to lock in the rate. |
Homeowner Newsworthy Topic of the Month
With the current and future budget 
deficient discussions and the re-writing of tax laws, the mortgage interest deduction is now more a topic of discussion.
Home mortgage interest deduction defined: Allows taxpayers who own their homes to reduce their taxable income by the amount of interest paid on their home loan.
Many homeowners rely year to year on the mortgage interest deduction, but what is the repercussion to the housing market if this is taken away?
Gary Thomas, president of the National Association of Realtors, said in an e-mailed statement. "...it has always been the N.A.R.'s position that the mortgage interest deduction is vital to the stability of the American housing market and economy, and we will remain vigilant in opposing any future plan that modifies or excludes the deductibility of mortgage interest." *National Association of Realtors.
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