Mortgages in Brief - Understand the Role of Credit in Purchasing Your Home

Understanding the role your credit plays in the purchase of your home is perhaps the most confusing aspect of the entire process. This short video helps explains why credit is important and how you can get a free copy of your credit report.

Mortgages In Brief - Closing & Other Costs When Buying A Home

When you buy a home, you know you'll likely need a down payment as well as funds for earnest money and other expenses, but what other costs can you expect to incur. This quick video explains the expenses related to purchasing a home.

Landscaping Can Impact Home Values, Appraisal Institute Says

CHICAGO --  The Appraisal Institute, the nation's largest professional association of real estate appraisers, today advised homeowners to properly maintain their landscaping, which can significantly affect property values.

"If a landscaping change is positive, it can often enhance price and reduce a home's time on the market," said Appraisal Institute President Richard L. Borges II , MAI, SRA. "But if the change is negative, it can lower the price and lengthen the time a home remains for sale."

Curb appeal is essential when selling a home, Borges said, noting it's the homeowner's opportunity to make a great first impression. A home with lackluster landscaping or an exterior in desperate need of a fresh coat of paint will likely be unappealing to prospective buyers and ultimately could affect the home's potential resale value, he said.

Landscaping is typically associated with lawns, trees, bushes and flowers. But other items also can be considered part of landscaping, such as fire pits, decks, patios, waterfalls, swimming pools and outdoor lighting … all of which could add to the value of the home.

Borges added that homeowners should trim growth regularly, replant approximately every 5 to 10 years depending on growth and not "overwhelm" the house. He also advised that homeowners check out what their neighbors have done and keep landscaping maintenance and improvements on par with neighborhood norms.

According to the International Association of Certified Home Inspectors, trees that are too close to buildings may be fire hazards. Additionally, larger tree root systems that extend underneath a house can cause foundation uplift and can leech water from the soil beneath foundations, causing the structures to settle and sink unevenly.

According to a recent study conducted by Lawn & Landscape magazine, about two-thirds of homeowners say they'll get less than 60 percent of their landscaping investment back when they sell the home.

"Landscaping improvements could make an impact on resale value, and homeowners need to consider how long they'll be in the home and whether to make short-term updates or plan for the long haul," Borges said.

Borges said homeowners should ask themselves the following questions when it comes to the quality of their home's green space:

• Is the landscaping attractive enough to make the prospective buyer walk through the front door? Keep the design contemporary and in line with comparable properties in the area.
• Could the landscaping provide cost savings? Landscaping that requires little or no water to maintain could be desirable depending on the geographic area.
• Is the landscaping energy-efficient for the home overall? For example, it's a good idea to plant trees in a place where they block the sun in locations with year-round hot climates.
• Are the trees planted at a safe distance from the home and are they healthy and well maintained? Weak, old or damaged trees planted too close to a home or building could pose dangers to the home's structure and will need to be removed. Consumers should also be sure that mulching or beds don't get too close to wood around foundations to avoid wood-destroying organisms.

Advice for First Time Homebuyers

In Almost Two-Thirds Of U.S. Metros, Buying Beats Renting In Three Years Or Less

SEATTLE, -- In 64 percent of metro areas nationwide, buying a home is a better financial decision than renting for home buyers intending to stay in their home for at least three years, according to a first quarter analysis from online real estate marketplace Zillow®.

Zillow's breakeven horizon incorporates all possible costs associated with buying and renting, including upfront payments, closing costs, anticipated monthly rent and mortgage payments, insurance, taxes, utilities and maintenance costs. It then factors in historic and anticipated home value appreciation rates, rental prices and rental appreciation rates to help calculate the point, in years, at which buying becomes less expensive than renting.ⁱ

Among the 30 largest metro areas analyzed by Zillow in the first quarter, those with the shortest breakeven horizon were Miami(2 years), Detroit (2 years) and Phoenix (2.1 years). Large metros with the longest breakeven horizon in the first quarter included New York (5.2 years), Boston (4.1 years) and San Jose (3.7 years). Within metro areas, the breakeven horizon will vary in individual counties, cities, neighborhoods and ZIP codes.

For the first time, the breakeven horizon was applied to the ZIP code and neighborhood levels within individual cities. Because neighborhood selection is such a critical part of the home shopping process, the breakeven tool can be more valuable at these smaller geographic levels.

For example, the breakeven horizon for New York City as a whole is 6.1 years. But at the neighborhood level, the breakeven horizon ranges from a low of 2.5 years in the Parkchester neighborhood in the Bronx, to a high of 11.9 years in the Carnegie Hill section of Manhattan. Nationwide, the neighborhood with the lowest breakeven horizon is the Shelby Forest-Frayser neighborhood in Memphis, Tenn., at just one year. The neighborhood with the longest breakeven horizon is the Sandbridge area of Virginia Beach, Va., at 20.3 years. To determine the breakeven horizon in your city or neighborhood, use our interactive tool here.

"Locally high home value appreciation in many areas, combined with historically low mortgage rates and low home prices relative to recent peaks, has made buying a home a more advantageous financial decision than renting for many would-be buyers," said Zillow Chief Economist Dr. Stan Humphries . "The decision to buy or rent should always take into account a number of factors, one of which is how long a buyer or renter plans to stay in a property. Even in areas with relatively low breakeven horizons, buyers should resist the temptation to buy and sell properties based only on short-term goals. And renters in these areas should never feel compelled to stretch themselves to buy if it is currently beyond their means."

The breakeven horizon is primarily impacted by the expected rate of home value appreciation in a given area. In areas where home values are expected to appreciate more quickly in coming years, the time it takes to recoup upfront costs will be lower and thus the breakeven period will be shorter. In areas where home values are expected to rise more slowly, or even fall, the breakeven horizon will be longer.

Top 30 Metro Areas Covered By Zillow		ZIP code-level variance w/in larger metro (years)
Metro Name	Overall Metro Breakeven (Years)	Low	High
New York, NY	5.2	2.5	11.5
Los Angeles, CA	3.5	1.9	12.9
Chicago, IL	2.8	1.1	8.3
Dallas-Fort Worth, TX	2.3	1	4.9
Philadelphia, PA	3.6	1	10.6
Washington, DC	3.5	1.2	7
Miami-Fort Lauderdale, FL	2	1.1	4.4
Atlanta, GA	2.5	1.1	4.5
Boston, MA	4.1	2.4	7.1
San Francisco, CA	3.4	2.1	6.2
Detroit, MI	2	1	5.7
Riverside, CA	2.2	1	4.2
Phoenix, AZ	2.1	1.4	3
Seattle, WA	3.6	2.3	4.9
Minneapolis-St Paul, MN	2.6	1.7	3.5
San Diego, CA	3.4	2	7.2
St. Louis, MO	3.3	1	8.2
Tampa, FL	2.3	1	4.3
Baltimore, MD	2.9	1.1	4.6
Denver, CO	2.8	2	4.1
Pittsburgh, PA	2.5	1.1	4.8
Portland, OR	3	2.2	4.1
Sacramento, CA	2.6	2	5.2
Orlando, FL	2.4	1.3	3.8
Cincinnati, OH	2.5	1.3	4
Cleveland, OH	2.4	1.1	3.9
Las Vegas, NV	3	1.1	9.9
San Jose, CA	3.7	2.8	5.1
Columbus, OH	2.7	1.2	8.8
Charlotte, NC	2.8	1.5	4.1

The breakeven horizon is available in 11,616 ZIP codes, 7,702 neighborhoods, 8,546 cities, 495 counties and 266 metropolitan areas nationwide. Nationally, the breakeven horizon was 3.1 years at the end of the first quarter.

CoreLogic Releases May MarketPulse Report

IRVINE, Calif., -- CoreLogic^® (NYSE: CLGX), a leading residential property information, analytics and services provider, today released its May MarketPulse report. In this report, CoreLogic Chief Economist Dr. Mark Fleming and Deputy Chief Economist Sam Khater examine factors contributing to the increase in residential investment and new home sales so far in 2013.

• Key findings in the May MarketPulse report include:
• Residential investment and price increases are happening unevenly across the U.S.
• Most markets have reached consistent price recoveries in only the last year or two.
• Real estate recovery remains a local phenomenon.
• The supply dynamics between new homes for sale and foreclosure and short sale inventory are shifting.  
• The recovery in new home sales is acting like a targeted economic stimulus package.

For a full copy of the May CoreLogic MarketPulse report, including a complete set of data and charts, visithttp://www.corelogic.com/downloadable-docs/MarketPulse_2013-May.pdf.

April realtor.com® Report Shows Housing Recovery Accelerating, as List Price and Inventory Increase

SAN JOSE, -- Realtor.com^®, the leader in online real estate operated by Move, Inc. (NASDAQ: MOVE), released its April data showing that the U.S. housing market is on its way to a broad-based recovery, an accelerated trend since March. The home buying season shifted into high gear last month as inventory and home list prices on realtor.com^® increased by 4.12 percent and 2.63 percent, month over month, respectively. As of April, homes are on the market nationwide approximately 81 days—a decrease of nearly 11 percent since April 2012—highlighting that while new homes are entering the market they are not available for long.

"Due to increased demand for homes and more confidence in the job market – we are beginning to see more and more buyers entering the housing market," said Steve Berkowitz , chief executive officer of Move. "Home buying season is off to a strong start, as buyers capitalize on moderate housing prices and snatch up homes quickly.  In some markets, we are seeing homes staying on the market for only a few weeks."

Despite the increase in inventory month over month, nationwide inventory declined year over year in all but 11 of the 146 markets realtor.com^® monitors. Approximately 36 markets registered a decrease of listings by 20 percent or more, still highlighting near records lows of available homes.

Approximately 37 markets experienced a decline in list price since last year, a figure that has been improving throughout the home buying season. The number of markets throughout the nation experiencing a steady or slight decline in median list prices is decreasing throughout the home buying season, another positive signal for the overall housing market recovery. In April, median list prices increased in 109 markets.

National Data

• ·         In April, the total number of single-family homes, condos, townhomes and co-ops for sale in the U.S. (1,750,839) increased by 4.12 percent month-over-month. On an annual basis, however, inventory decreased by 13.54 percent.  
• ·         The national median list price for single-family homes, condos, townhomes and co-ops ($194,900) increased by 2.63 percent vs. March, and 3.12 percent since April last year.
• ·         The median age of inventory of for sale listings (81) fell by nearly 11 percent in comparison to April last year.  

Local Data

• ·         Only seven markets throughout the nation experienced a one percent or greater year on year increase in housing inventory since April 2012. The Shreveport-Bossier City, LA market lead the pack with an increase of inventory of 19.16 percent since April last year. Springfield, IL; Huntsville, AL; Ocala, FL; El Paso, TX; Albuquerque, NM and Little Rock-North Little Rock, AR markets followed, respectively.
• ·         California continues to dominate the top 10 list of markets with the largest increase in median list price throughout the nation—only two regions in the list fall outside of California. These markets were hit the strongest by the housing crisis and are showing a great rebound as the housing recovery picks up steam. Oakland experienced the largest year over year increase in list price at 46.94 percent. The Santa Barbara-Santa Maria-Lompoc, CA market followed at 44.81 percent.Sacramento, CA; San Jose, CA; Los Angeles-Long Beach, CA; Orange County, CA; Detroit, MI; Ventura, CA; Fresno, CA; and Phoenix-Mesa, AZ rounded out the top markets with the largest increases in list prices in the nation.
• ·         Oakland continues to lead the nation with the shortest median age of inventory (15 days). San Jose, CA; San Francisco, CA; Denver, CO; Seattle-Bellevue-Everett, WA; Anchorage, AK; Washington, DC-MD, VA-WV (DC); Orange County, CA;Sacramento CA; and Washington, DC-MD-VA-WV (VA) follow, respectively. Homes in these areas stayed on the market an average 32 days, down 40 percent compared to last year.

Realtor.com^® regularly tracks real estate data and develops monthly reports featuring the number of listings, median age of inventory and median list price across the U.S. and in specific markets, as well as provides year-over-year and month-over-month changes. These reports are the only ones pulled directly from the realtor.com^® database, with the majority of listings updated every 15 minutes from more than 800 multiple listing services. For more information on Move, please visitwww.move.com or one of its many online real estate properties including realtor.com^® at www.realtor.com.

One-third of Homebuyers Surveyed Are Ill-prepared to Get a Mortgage

SEATTLE -- After several years of depressed demand for homes, buyers are returning to the market in droves. However, many homebuyers may be ill-prepared to take out a mortgage, answering basic questions about mortgage information wrong nearly one-third (32.5 percent) of the time[i], according to a Zillow® Mortgage Marketplace survey[ii] of prospective and current homeowners.

For example, one-third (34 percent) of first-time homebuyers are not aware that it is possible to get a home loan with a down payment of less than 5 percent. In fact, the number of lenders on Zillow Mortgage Marketplace quoting loan requests with a down payment between 3.5 and 5 percent has risen by 570 percent over the past two years[iii]. 

Homebuyers also do not understand how to secure the best possible interest rate and loan terms. One-quarter (26 percent) of homebuyers incorrectly believe they are obligated to close their loan with the lender that pre-approved them, and, separately, 24 percent of homebuyers incorrectly believe that the best interest rates and fees can always be found through the bank they currently do business with. Additionally, one-third of buyers (34 percent) believe all lenders are required by law to charge the same fees for credit reports and appraisals.  In fact, homebuyers should always shop multiple lenders to compare rates and fees in order to find the best loan for their situation.

The survey also reveals that current homeowners lack understanding of basic refinancing rules, which may be costing them money each month. One in five, or an estimated 14 million homeowners[iv], said they did not believe underwater borrowers could refinance. In fact, more than 2.2 million underwater borrowers have already refinanced through the federal Home Affordable Refinance Program, which was recently extended through 2015[v]. Separately, almost half (47 percent) of current homeowners believe they must wait at least one year between refinancing.

"All too often buyers focus on negotiating a lower home price and ignore the importance of finding the right loan. If a home buyer can lower their interest rate by even half a percentage point, they can not only increase their purchasing power, but save thousands of dollars over the life of the loan," said Erin Lantz , director of mortgages for Zillow. "Buyers should always shop multiple lenders and compare rates and fees and read lender reviews in order to find the best loan for their situation."

Additional survey findings:

• One-third (34 percent) of polled prospective homebuyers do not know what the term "annual percentage rate" (APR) means. The annual percentage rate (APR) is a yearly rate that reflects the true cost of a mortgage and is inclusive of the interest rate, points, mortgage insurance (when applicable), and other fees, including origination and underwriting fees.  The APR will typically be higher than the interest rate quoted by lenders, and should be used as a starting point when comparing loan quotes between lenders.
• Half (50 percent) of prospective homebuyers in the study do not understand that mortgage rates change throughout the day. In reality, much like the stock market, mortgage rates can change rapidly throughout the day. To get the optimum rate, it is important to monitor rates and shop around.
• Nearly one-third (31 percent) of current homeowners incorrectly believe that you must wait seven years after a short sale or foreclosure to purchase again. In most cases, homebuyers with a short sale history typically only need to wait 2-4 years depending on their down payment and the loan type. The waiting period after a foreclosure is longer – typically, buyers need to wait 3-7 years before they can qualify for a new home loan.
• More than one-third (34 percent) of current homeowners incorrectly believe that you can only refinance your home every 12 months. In reality, homeowners can refinance as often as they want. However, homeowners should weigh the cost of the refinance against the time they will own the home and the monthly payment change to determine if refinancing makes sense.

Interactive Online Quiz and Resources Available
An online version of the Zillow Mortgage Marketplace survey, the "Mortgage IQ Quiz," is available atwww.zillow.com/mortgage/quiz/  and contains the correct answers and detailed explanations to each question. Following the quiz, participants are given a score and resources to learn more about mortgages and the mortgage process. 

Bankrate: Mortgage Rates Rebound After Better Jobs Report

NEW YORK-- After declining for seven straight weeks, mortgage rates moved higher following better than expected news about jobs, with the benchmark 30-year fixed mortgage rate increasing to 3.6 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.31 discount and origination points.

To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.

The average 15-year fixed mortgage jumped to 2.82 percent, while the larger jumbo 30-year fixed mortgage rate settled at the 4 percent mark. Adjustable rate mortgages were mostly higher, with the 5-year nosing higher to 2.64 percent and the 10-year ARM climbing to 3.2 percent.

Mortgage rates had fallen for seven consecutive weeks, to levels that were at, or near, record lows. But the April jobs report was better than expected and helped sway sentiment about the economy. Both bond yields and mortgage rates increased, as mortgage rates are closely related to yields on long-term government bonds. So much of the economy's health is gauged by job growth, and this month's report came on the heels of a lousy March jobs report and some other soft economic data in recent weeks. In particular, the number of new jobs was revised upward for each of the two previous months.

The last time mortgage rates were above 5 percent was Apr. 2011. At the time, the average 30-year fixed rate was 5.07 percent, meaning a $200,000 loan would have carried a monthly payment of $1,082.22. With the average rate currently at 3.6 percent, the monthly payment for the same size loan would be $909.29, a difference of $173 per month for anyone refinancing now.

SURVEY RESULTS 

• 30-year fixed: 3.60% -- up from 3.52% last week (avg. points: 0.31) 
• 15-year fixed: 2.82% -- up from 2.75% last week (avg. points: 0.31) 
• 5/1 ARM: 2.64% -- up from 2.63% last week (avg. points: 0.23)

Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

For a full analysis of this week's move in mortgage rates, go to http://www.bankrate.com/.

The survey is complemented by Bankrate's weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. Just more than half of respondents don't expect much change in mortgage rates over the coming week, with 54 percent forecasting that mortgage rates will remain more or less unchanged. The remainder were evenly split between predicting an increase (23 percent) and predicting a decline (23 percent).

For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI.

CoreLogic Home Price Index Rises by 10.5 Percent Year Over Year in March

—Pending HPI Projects 9.6 Percent Growth Year Over Year in April—

Irvine, Calif. — CoreLogic^® (NYSE: CLGX), a leading residential property information, analytics and services provider, today released its March CoreLogic HPI^® report. Home prices nationwide, including distressed sales, increased 10.5 percent on a year-over-year basis in March 2013 compared to March 2012. This change represents the biggest year-over-year increase since March 2006 and the 13th consecutive monthly increase in home prices nationally. On a month-over-month basis, including distressed sales, home prices increased by 1.9 percent in March 2013 compared to February 2013*.

Excluding distressed sales, home prices increased on a year-over-year basis by 10.7 percent in March 2013 compared to March 2012. On a month-over-month basis, excluding distressed sales, home prices increased 2.4 percent in March 2013 compared to February 2013. Distressed sales include short sales and real estate owned (REO) transactions.

The CoreLogic Pending HPI indicates that April 2013 home prices, including distressed sales, are expected to rise by 9.6 percent on a year-over-year basis from April 2012 and rise by 1.3 percent on a month-over-month basis from March 2013. Excluding distressed sales, April 2013 home prices are poised to rise 12 percent year over year from April 2012 and by 2.7 percent month over month from March 2013. The CoreLogic Pending HPI is a proprietary and exclusive metric that provides the most current indication of trends in home prices. It is based on Multiple Listing Service (MLS) data that measure price changes for the most recent month.

“For the first time since March 2006, both the overall index and the index that excludes distressed sales are above 10 percent year over year,” said Dr. Mark Fleming, chief economist for CoreLogic. “The pace of appreciation has been accelerating throughout 2012 and so far in 2013 leading into the home buying season.”

“Home prices continue to rise at a double-digit rate in March led by strong gains in the western region of the U.S. Looking ahead, the CoreLogic pending index for April indicates that upward price appreciation will continue,” said Anand Nallathambi, president and CEO of CoreLogic. “Much of the price increases we are seeing are the result of rising demand among investors and homebuyers for a still-limited supply of homes for sale.”

Highlights as of March 2013:

• ·         Including distressed sales, the five states with the highest home price appreciation were:  Nevada (22.2 percent), California (17.2 percent), Arizona (16.8 percent), Idaho (14.5 percent) and Oregon (+14.3 percent).
• ·         Including distressed sales, this month only four states posted home price depreciation:  Delaware (-3.7 percent), Alabama (-3.1 percent), Illinois (-1.8 percent) and West Virginia (-0.3 percent).
• ·         Excluding distressed sales, the five states with the highest home price appreciation were: Nevada (20.8 percent), California (16.8 percent), Idaho (16.3), Arizona (15.1 percent) and Hawaii (+14.3 percent).
• ·         Excluding distressed sales, no states posted home price depreciation in March.
• ·         Including distressed transactions, the peak-to-current change in the nationalHPI (from April 2006 to March 2013) was -25.1 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -18.3 percent.
• ·         The five states with the largest peak-to-current declines, including distressed transactions, were Nevada (-49.2 percent), Florida (-42.8 percent), Michigan (-38.9 percent), Arizona (-37.8 percent) and Rhode Island (-36.2 percent).
• ·         Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 88 were showing year-over-year increases in March, down from 92 in February. 

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