The Effect of Interest Rates Increase

What happens to your mortgage payments when interest rates change?

For all buyers trying to get in contract right now, the same question is on everyone's mind: what are interest rates today, and how much is my loan payment going to be after my offer is accepted?

This informational slide below, compliments of the California Association of Realtors, gives us a pretty good idea on the impact of any change in the rates:

Also, here is a good link for current mortgage rates, to keep abreast of interest rates in general.

Tip: unless you are a gambler, it is usually a good idea to lock the rate the moment you are in contract to purchase a home.
Should 30-yr fixed rates increase too much on you, and you cannot qualify for the same amount any longer, you may have to consider a loan that would be fixed for a few years, and which then becomes adjustable.  These are the "3-yr, or 5-yr, or 7-yr fixed then adjustable" loans.  The starting rate, on which you are qualified by the lender, is lower, and that in turn allows you to qualify for a larger loan amount.  Ask your lender to advise you on the matter.

Let me know if I can help with any of your real estate questions!

Thank you for reading!
Francis

Price your home online

Silicon Valley real estate specialist

Detailed, local trends etc...

A worthy local non-profit to remember: Community Services Agency in Mountain View.

Disclosures Sellers Don't Have to Make...

Do you have to disclose that a house is haunted?

Since disclosures are one of the most important topics to address for sellers who sell their home, this is a subject certainly worth talking about.  A good rule of thumb is typically: if you wonder if you have to disclose something about your property, usually the answer is a resounding "YES".

With this in mind, I found this article from the Law Offices of Peter Brewer most interesting.  It details a few (rare) items that sellers do not have to disclose.
Arguably, the fact that one does not have to disclose does not necessarily mean they should not disclose, and in all cases it is always advisable to ask a qualified California Licensed Real Estate Attorney whether to disclose a specific item if you really are wondering about it - if you sell in California.

Although Realtors cannot advise on legal matters, they will usually tell you that it is best to disclose if you are in doubt (with a few exceptions) - and this is where the above article, written by attorneys, comes in as most interesting.

Most real estate lawsuits stem from sellers' or agents' disclosures or I should say: "lack of disclosures".

Marketing your property is certainly a very important aspect of selling a property, but working on preparing good disclosures when you sell your home is in my opinion by far the most important thing to do, and the wrong guidance on this matter could cost you a lot. I think it is the most important criterion in choosing your Realtor to sell your California property.

Thank you for reading!
Francis

Price Your Home
Detailed, local trends etc...
Current mortgage rates

Price Correlation - SF Bay Area - Nasdaq

Interesting correlation between the average sales price in the San Francisco Bay Area, and the Nasdaq over the past 20 years or so.

This graph is compliment of our Coldwell Banker analysts, and shows the average sales price for Coldwell Banker properties only, not ALL of the sales of properties on the market.

Still, it shows how heavily our local market, around San Francisco, is leaning on the high-tech heavy Nasdaq.

Click on the graph to see larger.

Thanks for reading!
Francis

Price Your Home
Detailed, local trends etc...
Current mortgage rates