Consumer Confidence

The confidence of the American consumer regarding near-term and longer-term expectations rose sharply in August, following less-than-exciting data the prior two months. A more confident consumer is a key to longer-term U.S. economic performance as consumer spending still represents two-thirds of all U.S. economic [...]]]> See All Kansas City Properties

Consumer Confidence

The confidence of the American consumer regarding near-term and longer-term expectations rose sharply in August, following less-than-exciting data the prior two months. A more confident consumer is a key to longer-term U.S. economic performance as consumer spending still represents two-thirds of all U.S. economic activity.

The Conference Board Consumer Confidence Index, based on a survey of 5,000 U.S. households, rose to 54.1 in August, up from 47.4 in July. Consumer views as expressed in the Present Situation Index rose, reflecting some improvement in the nation’s job market. The Expectations Index rose sharply to its highest level since December 2007, tied to a brighter economic assessment by consumers.

While rising confidence is a positive sign, we have a long way to go. The 54.1 August measure compares to an average of 57.9 during 2008. In addition, levels near 90 to 100 signal consumer expectations of strong U.S. economic growth…..still a good sign.

Home Values

Yes, prices were down an estimated 14.9% when compared to the second quarter one year ago. Note, however, that first quarter home prices were down a more painful 19.1% when compared to the same quarter a year ago.

The S&P/Case-Shiller Home Price Index has been one of the more negative measures of home values in recent years. The Index suggests that the average American home value has plunged roughly 32% since peaking in the summer of 2006.

As one might expect, the sharp decline in home prices has led to more people being able to buy a home…if they still have a job. The combination of sharp home price declines and historically low mortgage interest rates, when compared to average family incomes, now suggests the highest level of housing affordability in a generation. Numerous housing markets are seeing much stronger levels of buying interest, particularly in California…

…another good sign

Budget Deficits

Spoiling the party is the latest estimate of budget deficits during the next decade, which are simply scary…

We can live with budget deficits averaging $150-$300 billion annually…as bad as that is…we have done it for years. In my view, we cannot live with deficits averaging $1,000,000,000,000 EACH year.

The White House now says the projected deficit over the next 10 years will reach $9.05 trillion, roughly $2 trillion higher than its estimate earlier this year. The culprits are a more serious economic downturn than expected previously, higher joblessness, and less aggressive forecasts as to future U.S. economic growth.

One piece of good news in the report, as well as found in a similar estimate by the Congressional Budget Office, is that the projected deficit for the current fiscal year, which ends on September 30, is now “merely” $1.58 trillion, down $263 billion from the projection in May. The reason is $250 billion included in the earlier estimate for an additional bank bailout is no longer needed…

…at least that’s a good sign. 

“Reprinted with permission from the “Tea Leaf” by Jeff Thredgold. Copyright, 2009, Thredgold Economic Associates, LLC. To subscribe to Jeff’s free weekly email update, visit www.thredgold.com.”

Whether you’re thinking about buying or selling or seeking information, rely on RE/MAX Best Associates 800-391-BEST(2378) X106 or 913-339-0615 to provide accurate up to date information about the marketplace email to: tfarrell@remax.net  or visit http://www.kansascityerealestate.com/

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Are you aware of any great applications to make all of our lives a bit more manageable.  Gas prices are at least not rising and the KC Star said heating costs for natural gas should rise little or NOT at all.  It is a great time to buy or sell real estate in Kansas City.

Whether you’re thinking about buying or selling or seeking information, rely on RE/MAX Best Associates
800-391-BEST(2378) X106 or 913-339-0615 to provide accurate up to date information about the marketplace.email  tfarrell@remax.net  or  www.kansascityerealestate.com

A digital model is stored and secure data electronically collected and saved on a computer. To complete the model a RE/MAX Best Associate will ask questions and your answers will be stored on a password protected [...]]]> Click this text to return to the RE/MAX Best Associates Website to see All Kansas City properties!

A digital model is stored and secure data electronically collected and saved on a computer. To complete the model a RE/MAX Best Associate will ask questions and your answers will be stored on a password protected secure web based form. 

You will be asked questions such as your price range, the minimum # of bedrooms and baths you require and the geographic boundaries of your search. The online form will save your specific needs such as a minimum number of garages or your need for a fenced yard or a finished basement.   Next your model is “matched” to the central Heartland MLS database for all properties that meet or exceed your specific needs. The list of matches returned from the central database becomes our baseline list. You will receive a copy of the baseline list of properties.

As you see more properties your criteria may change and your digital model will be constantly updated. A match search on your model is run as often as required, weekly, daily or even hourly. The advantage of using a digital model is you always stay current with the market. As new properties reach the market matching your model, you will be notified via email or by another method you prefer.

Building your digital model takes under an hour including time to explain and provide you with a package of valuable information.  If you are serious about buying a home, building your personal digital model is the first step. Please send your request for an appointment to create your personal digital model to tfarrell@remax.net in the subject line please type digital model.

Whether you’re thinking about buying or selling or seeking information, rely on RE/MAX Best Associates 800-391-BEST(2378) X106 or 913-339-0615 to provide accurate up to date information about the marketplace.email tfarrell@remax.net  or  www.kansascityerealestate.com 

To receive a free computer generated market appraisal please provide your name and address, subdivision name if known and a brief description of your property and an email address or fax number where appraisal may be [...]]]> Click this text to return to the RE/MAX Best Associates Website to see All Kansas City properties!

To receive a free computer generated market appraisal please provide your name and address, subdivision name if known and a brief description of your property and an email address or fax number where appraisal may be sent. The computer appraisal may be sent by email or by facsimile. Please indicate your preference when transmitting your property information. 

All the data for your appraisal will be obtained exclusively from the Heartland Multiple Listing Service. You will be
presented with all sold and on the market data for your area. Appraising is an inexact science. If you’d like a more comprehensive analysis of your property’s value, have questions or simply do not agree with the analysis after you review it, please let us know. When it comes right down to it, any product is only worth what a buyer is willing to pay. The market determines value. It is our hope that the appraisal gives you the awareness you seek in establishing the value of your property. To receive your free computer generated market appraisal, please email your request to tfarrell@remax.net

Whether you’re thinking about buying or selling or seeking information, rely on RE/MAX Best Associates 800-391-BEST(2378) X106 or 913-339-0615 to provide accurate up to date information about the marketplace.email  tfarrell@remax.net  or  www.kansascityerealestate.com

If you plan a move across town or anywherein North America you may request a free relocation package filled with information about your destination city delivered to you within three working days. Often the fear of [...]]]> Click this text to return to the RE/MAX Best Associates Website to see All Kansas City properties!

If you plan a move across town or anywherein North America you may request a free relocation package filled with information about your destination city delivered to you within three working days. Often the fear of anything is the unknown. Fortified with the knowledge contained in these informative packages you’ll be prepared for what ever new and exciting adventures await you. Please provide your destination city, state and zip code. Please also include your name, phone number with area code if outside of Kansas City and the address where you’d like the package delivered.   Please, no post office boxes and phone numbers must be included for package  delivery, routing information and verification. Please email your request to tfarrell@remax.net  

Whether you’re thinking about buying or selling or seeking information, rely on RE/MAX Best Associates 800-391-BEST(2378) X106 or 913-339-0615 to provide accurate up to date information about the marketplace.email  tfarrell@remax.net  or  www.kansascityerealestate.com

 Have a real estate question? Please email your questions to tfarrell@remax.net    

This forum is used to field Real Estate questions and to disseminate pertinent information about real estate trends and practices. Answers to your questions may be [...]]]> Click this text to return to the RE/MAX Best Associates Website to see All Kansas City properties!

 Have a real estate question? Please email your questions to tfarrell@remax.net    

This forum is used to field Real Estate questions and to disseminate pertinent information about real estate trends and practices. Answers to your questions may be found here. 

Whether you’re thinking about buying or selling or seeking information, rely on RE/MAX Best Associates 800-391-BEST(2378) X106 or 913-339-0615 to provide accurate up to date information about the marketplace.email to  tfarrell@remax.net  or  www.kansascityerealestate.com

A reverse mortgage is a special type of loan that enables older homeowners to stay in their home and maintain a comfortable lifestyle. It allows these homeowners to convert the equity in their home to [...]]]> Click this text to return to the RE/MAX Best Associates Website to see All Kansas City properties!

A reverse mortgage is a special type of loan that enables older homeowners to stay in their home and maintain a comfortable lifestyle. It allows these homeowners to convert the equity in their home to cash without selling the property or giving up title.

The loan is called a reverse mortgage because the direction of payments is reversed — the lender pays the borrower rather than vice versa. The loan provides funds to the homeowner as a one-time lump sum payment, a line of credit (the most popular method), or fixed monthly payments for life (called tenure) or a shorter period chosen by the borrower. The loan amount is based on the owner’s equity in his or her own house, the value and location of the property, current interest rates, and the owner’s age at the time of application. The older the borrower, the larger the loan amount may be. Single-family one-unit dwellings are eligible properties for all reverse mortgages. Some programs also accept 2-4 unit owner-occupied dwellings and some condominiums and manufactured homes. Cooperatives are ineligible.

There are no credit or income requirements to qualify for a reverse mortgage. Instead, the borrower must be at least 62 years old and, in general, the borrower must receive counseling or consumer education in advance. The maximum loan amount is larger if the home is debt-free or nearly so, but this isn’t required to obtain a reverse mortgage. Although age affects the size of a loan, medical history does not – applicants are NOT required to furnish medical records or undergo an exam.

A reverse mortgage does not have to be repaid until the death of the last surviving borrower, the home is sold, or a permanent move out of the home by the borrower. And the home does not have to be sold to repay the loan. The loan can be repaid using other sources of funds and the home kept, if the heirs or estate desire.

Several Products Available

Four types of reverse mortgage products are available today. These include: the federally insured Home Equity Conversion Mortgage (HECM); the Fannie Mae Home Keeper reverse mortgage; and the Financial Freedom Equity Guard and Cash Account Plans, two proprietary “jumbo” products. The HECM is a reverse mortgage, made by private lenders, that is insured by the Federal Housing Administration, an arm of the U.S. Department of Housing and Urban Development. First offered in 1989, the HECM is the oldest nationally available reverse mortgage product. More than 40,000 have been originated to date, including 8,000 in the federal fiscal year that ended September 30, 1999.

The Home Keeper loan is a reverse mortgage product designed by Fannie Mae, a national company that invests in home loans. Fannie Mae is the largest investor in reverse mortgages and has a current portfolio of over 35,000 reverse mortgages. Of this total, about 90% are FHA HECMs and 10% are Home Keeper mortgages. Home Keeper mortgages offer some different features than FHA HECM loans and can be large in size, particularly for couples. Home Keeper mortgages are originated by private lenders.

Fannie Mae also offers a unique program called Home Keeper for Home Purchase. This allows a senior to obtain a Home Keeper reverse mortgage to help finance the purchase of a new home. The advantage of this arrangement is that a senior can purchase a new home with less out-of-pocket cash, keep more of the sales proceeds from the old house, and avoid taking on a monthly mortgage payment.

About NRMLA

Established in January 1998, the National Reverse Mortgage Lenders Association is a non-profit trade association that represents lenders, financial services, and other professionals involved with reverse mortgages. NRMLA’s member firms originate and service more than 90% of all reverse mortgages. NRMLA promotes public awareness of the reverse mortgage product; keep its members informed of new legislative, regulatory, and market developments; represents the industry in Washington, DC; and holds periodic national conferences on reverse mortgage topics and trends. The Association held its first meeting in May 1998, in Chicago.

The Association has been actively involved in a number of legislative, regulatory, and market- oriented projects in its first year, with considerable success. Results include the passage of federal legislation making positive improvements to the federal reverse mortgage insurance program; steps toward enhancing the quality and availability of consumer counseling as it relates to reverse mortgages; and the creation of a Code of Conduct for Association members.

NRMLA’s Web site (see address below) has extensive information about reverse mortgages. Jim Mahoney, of Financial Freedom Senior Funding Corporation, Irvine, CA, is Chairman of NRMLA. Day-to-day operation of NRMLA is managed by President Peter H. Bell. 1625 Massachusetts Ave., NW, Suite 601 Washington, DC 20036 Tel: 202-939-1760 / 202-265-4435 (fax) Web site:http://www.reversemortgage.org For More Information:

Fannie Mae Toll-Free 800-732-6643. Consumers can obtain information on HECMs and Home Keeper mortgages and a list of lenders around the U.S. offering these reverse mortgages. Web site: http://www.fanniemae.com

HUD

Toll-Free 888-466-3487 Consumers can get information on reverse mortgages, specifically on the Home Equity Conversion Mortgage.

Web site: http://www.hud.gov

National Reverse Mortgage Lenders Association 202-939-1765

Consumers can find the names of reverse mortgage lenders in their state by calling NRMLA or checking the “Lenders List” on the Association’s Web site. The site also has detailed information on reverse mortgages. Web site: http://www.reversemortgage.org

Whether you’re thinking about buying or selling or seeking information, rely on RE/MAX Best Associates 800-391-BEST(2378) X106 or 913-339-0615 to provide accurate up to date information about the marketplace email to: tfarrell@remax.net or visit www.kansascityerealestate.com