This Seamless Solution Will Be Available to Network of More Than 80,000 Associates in February
AUSTIN, TEXAS (January 10, 2011) – Keller Williams Realty announced today that it will launch the real estate industry’s first complete lead-to-close business solution for every agent in the company, eEdge. The first phase of eEdge, voted on and ratified by the company’s Associate Leadership Councils, will officially launch at the company’s annual convention in February 2011.
While many agents spend their day logging into several different systems to manage their business, eEdge will be the first fully-integrated front and back-end platform for real estate professionals. This single platform will enable agents to:
• Funnel and maintain all their contacts, leads and clients into one database
• Create, print and send custom marketing and sales material
• Manage their Web site and their listings
• Facilitate/complete their transactions paperlessly, with an online portal for clients/co-op agents
“Keller Williams is determined to stay ahead of the curve to provide the most services and support in the industry to our entire network – especially in today’s real estate climate," said Mark Willis, CEO of Keller Williams Realty. “This is just the latest demonstration of our commitment to helping our agents accelerate their leadership internationally as well as in their local markets."
The company has partnered with industry leaders, Market Leader and DotLoop to provide components of eEdge. Market Leader will provide the lead management, contact management and marketing design solution, while DotLoop will provide the seamless platform for sending, signing and managing documents online. Keller Williams Realty will be providing the central platform that allows for a single point of entry and seamless information sharing between each component of product.
“The launch of the eEdge platform represents a major milestone in the real estate industry and we at Market Leader are proud of our role in helping create this innovative platform for every Keller Williams associate," said Ian Morris, CEO of Market Leader.
"The current process of taking a client through the lifecycle of a transaction is inefficient and cumbersome. The platform we are partnering with Keller Williams to provide to its associates will accelerate this process and improve the overall experience of buying and selling a home," said Austin Allison, co-founder and CEO of DotLoop. “Essentially, we have aligned the business needs of agents and the expectations of their clients by providing a win-win for all parties involved, including the agent on the other side of the transaction."
The eEdge product was originally masterminded by the company’s Agent Technology Council, or ATC, a leadership committee made up of top-producing, technology-minded associates. In order to ensure that eEdge was the right product at the right time, the company then conducted a North American-wide company vote among its Associate Leadership Councils, a decision-making body of agents that exists in every office and guides the strategic direction of the company and its initiatives.
“eEdge will do everything except make calls for you," said Mary Tennant, president and COO of Keller Williams Realty. “It’s designed to help our agents’ businesses run more smoothly so that they can do what they do best – provide the highest level of service to their buyers and sellers."
Thursday, January 20, 2011
Tuesday, December 7, 2010
Are You Selling a House with a Pet?
With 6 our of 10 American homeowners owning at least one, petscan be a problem for both sellers and Realtors bringing potential buyers.
Sellers with pets should do their best to get rid of pet odor. Pet odor and pet hair are the biggest problems, and these issues can turn off potential buyers with allergies, sensitive noses, or buyers with high standards of cleanliness. A professional cleaning as well as frequent vacuuming can help.
During showings it is smart to corral pets in a crate or behind a closed door. Make sure you have a sign on the closed door warning potential buyers that an animal is behind the door. Even if the pet is the "sweetest dog/cat on earth", some buyers just don't want animals in their home!
Sellers with pets should do their best to get rid of pet odor. Pet odor and pet hair are the biggest problems, and these issues can turn off potential buyers with allergies, sensitive noses, or buyers with high standards of cleanliness. A professional cleaning as well as frequent vacuuming can help.
During showings it is smart to corral pets in a crate or behind a closed door. Make sure you have a sign on the closed door warning potential buyers that an animal is behind the door. Even if the pet is the "sweetest dog/cat on earth", some buyers just don't want animals in their home!
Wednesday, August 25, 2010
8 Camera Tips to Capture a Room's Size
Make sure every square foot counts when photographing interiors. Try these tips to expand the space.
By Melissa Dittmann Tracey | August 2010
Source: Realtormag.com
Buyers love spacious homes. They also love to look at online property photos. But it’s not always easy to squeeze square footage into a camera shot—and sometimes furniture arrangements or floor coverings actually do a disservice to the way your listing is presented online or in marketing photos, says Debra Gould, president of home staging company Six Elements Inc. in Toronto and creator of the Staging Diva training program.
She offers these tips for making sure that every room of your listing looks as large in photos as it does in real life.
1. Remove area rugs. Rugs break up the expanse of the floor and can make rooms look smaller. Keep the floor as clear as possible.
2. Use a wide-angle camera. A camera with a wide-angle lens (28 millimeters or less on a DSLR, or the equivalent on a point-and-shoot) is best for interior shots because it magnifies the distance between objects and showcases a room’s depth, Gould says. But beware of fisheye lenses or ultra wide-angle lenses, which tend to make rooms look wider but can mislead buyers into thinking there’s more space than there is.
3. Get creative with furniture. Make sure that furniture doesn’t block views or walkways so you reveal as much of the floor as possible. If there’s too much furniture packed into a room or the furniture is too large, it can also work against you in photos.
In a crowded room, try removing a few pieces of furniture or swapping in a smaller piece. In a kitchen or dining room, it might look better if you remove that extra leaf from the table. Try using furniture to create new spaces in large rooms and really show off that square footage. For example, Gould added a reading corner in a master bedroom to show that more than just a bed could fit.
4. Fill up an empty space. Buyers have trouble imagining how their stuff will fit into an empty room; the space can seem smaller than it really is. If possible, bring in furniture for staging. "If the rooms are furnished, they look larger and much more inviting," Gould says.
5. Use mirrors to your advantage. A reflection in a mirror can reveal more of a room when you can’t squeeze everything into your photo. This can be a great technique particularly when photographing bathrooms. Use the reflection of the bathroom mirror to show the extras, such as that soaker tub. Just be sure to shoot photos at an angle so that you don’t capture your own reflection!
6. Lighten up. In photos, brighter rooms typically come across as more open and welcoming, whereas dark rooms can look small and dingy. Pay attention to the light sources in a room to get a better shot. Turn on all of the lights and open the curtains to let in natural light and expand the space. But don’t shoot directly into a light source; it’ll darken a room.
7. Shoot at an angle. The diagonal line is the longest visual line in a room. Try shooting from the corner; back up as far as you can before you shoot. But don’t limit yourself: Take shots from three or four different angles so that you have plenty of options, Gould recommends. Also, try getting low to the ground to show off the length of the room. Eye level doesn’t always work best to capture floor proportions.
8. Remove clutter. You’ve heard it before, but clutter makes a room look cramped and steals attention from a room’s intended focal points. Clear away paper stacks, crowded walls of artwork, cluttered countertops, magnets covering the refrigerator, and towels hanging from the stove.
Finally, do your best to ensure that any major changes you make to a room’s layout for the purpose of photos are kept in place for showings. "You’ll create a disconnect if the house looks great only in the online photos," Gould says. "If buyers feel let down, they’re not going to buy the house."
Call us for more information on the FANTASTIC career opportunies at Keller Williams McKinney! GREAT people, TOP NOTCH training, and PROFIT SHARING! Our Team Leader, Matt Hilton will be happy to tell you all about it - call him direct at 469-452-1112 or email matthilton@kw.com.
By Melissa Dittmann Tracey | August 2010
Source: Realtormag.com
Buyers love spacious homes. They also love to look at online property photos. But it’s not always easy to squeeze square footage into a camera shot—and sometimes furniture arrangements or floor coverings actually do a disservice to the way your listing is presented online or in marketing photos, says Debra Gould, president of home staging company Six Elements Inc. in Toronto and creator of the Staging Diva training program.
She offers these tips for making sure that every room of your listing looks as large in photos as it does in real life.
1. Remove area rugs. Rugs break up the expanse of the floor and can make rooms look smaller. Keep the floor as clear as possible.
2. Use a wide-angle camera. A camera with a wide-angle lens (28 millimeters or less on a DSLR, or the equivalent on a point-and-shoot) is best for interior shots because it magnifies the distance between objects and showcases a room’s depth, Gould says. But beware of fisheye lenses or ultra wide-angle lenses, which tend to make rooms look wider but can mislead buyers into thinking there’s more space than there is.
3. Get creative with furniture. Make sure that furniture doesn’t block views or walkways so you reveal as much of the floor as possible. If there’s too much furniture packed into a room or the furniture is too large, it can also work against you in photos.
In a crowded room, try removing a few pieces of furniture or swapping in a smaller piece. In a kitchen or dining room, it might look better if you remove that extra leaf from the table. Try using furniture to create new spaces in large rooms and really show off that square footage. For example, Gould added a reading corner in a master bedroom to show that more than just a bed could fit.
4. Fill up an empty space. Buyers have trouble imagining how their stuff will fit into an empty room; the space can seem smaller than it really is. If possible, bring in furniture for staging. "If the rooms are furnished, they look larger and much more inviting," Gould says.
5. Use mirrors to your advantage. A reflection in a mirror can reveal more of a room when you can’t squeeze everything into your photo. This can be a great technique particularly when photographing bathrooms. Use the reflection of the bathroom mirror to show the extras, such as that soaker tub. Just be sure to shoot photos at an angle so that you don’t capture your own reflection!
6. Lighten up. In photos, brighter rooms typically come across as more open and welcoming, whereas dark rooms can look small and dingy. Pay attention to the light sources in a room to get a better shot. Turn on all of the lights and open the curtains to let in natural light and expand the space. But don’t shoot directly into a light source; it’ll darken a room.
7. Shoot at an angle. The diagonal line is the longest visual line in a room. Try shooting from the corner; back up as far as you can before you shoot. But don’t limit yourself: Take shots from three or four different angles so that you have plenty of options, Gould recommends. Also, try getting low to the ground to show off the length of the room. Eye level doesn’t always work best to capture floor proportions.
8. Remove clutter. You’ve heard it before, but clutter makes a room look cramped and steals attention from a room’s intended focal points. Clear away paper stacks, crowded walls of artwork, cluttered countertops, magnets covering the refrigerator, and towels hanging from the stove.
Finally, do your best to ensure that any major changes you make to a room’s layout for the purpose of photos are kept in place for showings. "You’ll create a disconnect if the house looks great only in the online photos," Gould says. "If buyers feel let down, they’re not going to buy the house."
Call us for more information on the FANTASTIC career opportunies at Keller Williams McKinney! GREAT people, TOP NOTCH training, and PROFIT SHARING! Our Team Leader, Matt Hilton will be happy to tell you all about it - call him direct at 469-452-1112 or email matthilton@kw.com.
Monday, August 16, 2010
10 States with Pricey Closing Costs
Info from Realtormag.com
Closing costs have risen an average of 36.6 percent compared to 2009, according to Bankrate.com’s annual survey.
The big increased was caused by the U.S. government requiring lenders to provide accurate good faith estimates of closing costs. Previously, lenders weren’t penalized for a bad estimate.
On average, the origination and third party fees on a $200,000 purchase mortgage added up to $3,741.
Here are the 10 highest states:
1. New York, $5,623
2. Texas, $4,708
3. Utah, $4,605
4. California-San Francisco, $4,566; California-Los Angeles, $4,406
5. Alaska, $4,327
6. Oklahoma, $4,254
7. Pennsylvania, $4,236
8. New Jersey, $4,110
9. Idaho, $4,077
10. Massachusetts, $4,025
Source: Bankrate.com (08/16/2010
Closing costs have risen an average of 36.6 percent compared to 2009, according to Bankrate.com’s annual survey.
The big increased was caused by the U.S. government requiring lenders to provide accurate good faith estimates of closing costs. Previously, lenders weren’t penalized for a bad estimate.
On average, the origination and third party fees on a $200,000 purchase mortgage added up to $3,741.
Here are the 10 highest states:
1. New York, $5,623
2. Texas, $4,708
3. Utah, $4,605
4. California-San Francisco, $4,566; California-Los Angeles, $4,406
5. Alaska, $4,327
6. Oklahoma, $4,254
7. Pennsylvania, $4,236
8. New Jersey, $4,110
9. Idaho, $4,077
10. Massachusetts, $4,025
Source: Bankrate.com (08/16/2010
Friday, August 13, 2010
Fannie Mae relaxes limit of 30 REO listings per broker
By Jon Prior
Source: Thisweek@KW.com
Fannie Mae has relaxed its limit of allocating no more than 30 REO listings per broker from any one Fannie Mae source, acknowledging the abilities of “higher-performing brokers.”
At the end of June, HomePath, the division of Fannie Mae that manages REO inventory owned by the government-sponsored enterprise (GSE), imposed a strict limit of 30 REO listings that a broker of record could have at any time with a single Fannie Mae source. The restrictions also limited listings to a 25-mile proximity. Fannie warned that “100% compliance” was expected.
This sparked a response from the National Association of Realtors (NAR) and Keller Williams Realty, which in support of its brokers and real estate agents, asked for some leniency from Fannie Mae.
While NAR agreed with Fannie that it should not have an inflexible limit on the number of REO listings, the trade group urged Fannie to rely on documented success and professional performance of real estate brokers.
In a letter to Michael Williams, president and CEO of Fannie Mae, Mark Willis, the CEO of Keller Williams Realty, said REO listings require focused market attention “from experienced, results-oriented real estate professionals,” and that the real estate firm disagreed strongly with the limitation.
Willis wrote: “Recent conversations with real estate professionals who are immersed in the REO arena have confirmed our contention that these limitations will impede the objectives of both Fannie Mae and the real estate professionals who have invested heavily in people and systems to efficiently move REO properties. Clearly, the REO arena is an extremely specialized field, requiring dedicated professionals who possess distinct expertise and sufficient financial and organizational resources.”
He went on to address the concern that the limitations would drive talent away from the REO business, which is, by its nature, growing in volume but generating low margins.
Fannie replied July 9. In that announcement, Fannie stated as a general rule, it does not allocate more than 30 active REO listings from any one Fannie Mae source at one time, which has been a long-standing practice.
But Fannie went on to acknowledge some higher-performing brokers can handle more than 30 properties at a time and still exceed Fannie Mae’s standards. The company announced it would approve special exceptions to the limit and clarified that a broker can have 30 listings directly from Fannie and another 30 from outsourcers without Fannie Mae approval.
A spokesperson for Fannie Mae said it was the last action the company took on the matter.
Source: Thisweek@KW.com
Fannie Mae has relaxed its limit of allocating no more than 30 REO listings per broker from any one Fannie Mae source, acknowledging the abilities of “higher-performing brokers.”
At the end of June, HomePath, the division of Fannie Mae that manages REO inventory owned by the government-sponsored enterprise (GSE), imposed a strict limit of 30 REO listings that a broker of record could have at any time with a single Fannie Mae source. The restrictions also limited listings to a 25-mile proximity. Fannie warned that “100% compliance” was expected.
This sparked a response from the National Association of Realtors (NAR) and Keller Williams Realty, which in support of its brokers and real estate agents, asked for some leniency from Fannie Mae.
While NAR agreed with Fannie that it should not have an inflexible limit on the number of REO listings, the trade group urged Fannie to rely on documented success and professional performance of real estate brokers.
In a letter to Michael Williams, president and CEO of Fannie Mae, Mark Willis, the CEO of Keller Williams Realty, said REO listings require focused market attention “from experienced, results-oriented real estate professionals,” and that the real estate firm disagreed strongly with the limitation.
Willis wrote: “Recent conversations with real estate professionals who are immersed in the REO arena have confirmed our contention that these limitations will impede the objectives of both Fannie Mae and the real estate professionals who have invested heavily in people and systems to efficiently move REO properties. Clearly, the REO arena is an extremely specialized field, requiring dedicated professionals who possess distinct expertise and sufficient financial and organizational resources.”
He went on to address the concern that the limitations would drive talent away from the REO business, which is, by its nature, growing in volume but generating low margins.
Fannie replied July 9. In that announcement, Fannie stated as a general rule, it does not allocate more than 30 active REO listings from any one Fannie Mae source at one time, which has been a long-standing practice.
But Fannie went on to acknowledge some higher-performing brokers can handle more than 30 properties at a time and still exceed Fannie Mae’s standards. The company announced it would approve special exceptions to the limit and clarified that a broker can have 30 listings directly from Fannie and another 30 from outsourcers without Fannie Mae approval.
A spokesperson for Fannie Mae said it was the last action the company took on the matter.
Thursday, July 8, 2010
7 Rules for Room Additions
by Paul Bianchina
If you're happy with your home and your neighborhood but are craving a little more space, maybe adding on is a better alternative to moving out. Room additions can be a terrific alternative for many homes, adding space for a growing family and adding resale value at the same time.
But be forewarned. A good room addition involves a whole lot more than just slapping on some additional square footage. Here are some important rules to keep in mind as your planning gets under way:
1. Know why you're adding on: This is the first rule, and it happens before you lift a hammer. Why do you need to add on? And no fair cheating and saying, "I need more space!"
Do you need another bathroom? Bedroom space? A laundry room or mud room? An improved kitchen flow? More space to entertain? Better accessibility due to health issues? More storage? A larger garage or hobby area? The only way the addition will meet your needs is to know what those needs are in the first place.
2. Good additions never look like additions: This is the other top rule of room-addition planning. When you're done, the addition -- no matter what its size or where it's located -- should never look like an addition. The architectural styles of new and existing need to blend.
The exterior materials need to blend as well, or at least complement each other. To the extent possible, use the same type of windows, roofing, doors, siding and other materials. If the original home has wood windows, using new vinyl windows in the addition screams "add-on" and lowers the appeal and the value. Don't overlook the need to blend landscaping and hardscaping as well.
3. Out, up, down, or a combination: The how and the where of a room addition is always a fun and exciting challenge for everyone involved. Some homes are situated on larger lots and lend themselves very nicely to adding out. Others seem best suited to adding up by building on a second or even a partial third floor.
Some houses are even laid out in such a way that it's possible to excavate under them and add new living space in the form of a daylight basement. Or it could be that a combination of two or even all three of these options makes the most sense for your particular home. Keep your mind open to the possibilities. Work with a good contractor and a good designer and you'll be amazed at what you can come up with.
4. Don't let the interior become an afterthought: I've seen a surprising number of additions that look great from the outside but seem to have no thought put into them on the inside. Flooring doesn't match. Trim doesn't match. Sometimes even the interior floor heights don't match. Remember that how the interior of your addition looks and flows on the inside is just as important as how it looks and flows on the outside. Use the same materials or the same style of materials. Match up ceiling, floor, and wall levels. Here again, no matter how you view the addition, inside or out, it should never look like an addition.
5. Create convenient access: This is another afterthought in a lot of additions. Let's say you have a three-bedroom, one-bathroom house, and you want to add a second bathroom. Typically, that's an addition that's going to have a good payback. But then you build the addition so that the only access to the second bathroom is through the kitchen. You now have a three-bedroom, two-bath house, but since the layout is lousy, you've actually gone backwards in terms of desirability and resale value.
Are you going to create a beautiful second-floor master suite that can be accessed only by a tiny spiral staircase from the family room? Is the only way into your great new kitchen via a convoluted hallway that leads through the laundry room?
When planning your addition, never lose sight of how you're going to access the new spaces, and make sure that access is both convenient and inviting.
6. Don't overwhelm your lot: Granted, room additions are expensive. So when you're doing one, and all those workers are onsite, there's a temptation to get as much square footage as you can. But don't cram your lot full of house. Remember that open space is important as well, both to you and your family, and, later on, to potential buyers.This is a good time to go back to Rule No. 1 and reconsider the "why" part of your room addition. Don't add space just to add it -- stay focused on your overall goals.
7. Understand the legalities: There are lots of rules and regulations that come into play regarding room additions. These include property line setbacks, zoning restrictions, and restrictions imposed by homeowner associations and architectural review committees.
In some historic areas, your addition may have to comply with certain historic guidelines. In other areas, there may even be solar shading restrictions that limit the height or the orientation of your roof line. Be sure you check into all of this before you get too far along with your planning.
If you're happy with your home and your neighborhood but are craving a little more space, maybe adding on is a better alternative to moving out. Room additions can be a terrific alternative for many homes, adding space for a growing family and adding resale value at the same time.
But be forewarned. A good room addition involves a whole lot more than just slapping on some additional square footage. Here are some important rules to keep in mind as your planning gets under way:
1. Know why you're adding on: This is the first rule, and it happens before you lift a hammer. Why do you need to add on? And no fair cheating and saying, "I need more space!"
Do you need another bathroom? Bedroom space? A laundry room or mud room? An improved kitchen flow? More space to entertain? Better accessibility due to health issues? More storage? A larger garage or hobby area? The only way the addition will meet your needs is to know what those needs are in the first place.
2. Good additions never look like additions: This is the other top rule of room-addition planning. When you're done, the addition -- no matter what its size or where it's located -- should never look like an addition. The architectural styles of new and existing need to blend.
The exterior materials need to blend as well, or at least complement each other. To the extent possible, use the same type of windows, roofing, doors, siding and other materials. If the original home has wood windows, using new vinyl windows in the addition screams "add-on" and lowers the appeal and the value. Don't overlook the need to blend landscaping and hardscaping as well.
3. Out, up, down, or a combination: The how and the where of a room addition is always a fun and exciting challenge for everyone involved. Some homes are situated on larger lots and lend themselves very nicely to adding out. Others seem best suited to adding up by building on a second or even a partial third floor.
Some houses are even laid out in such a way that it's possible to excavate under them and add new living space in the form of a daylight basement. Or it could be that a combination of two or even all three of these options makes the most sense for your particular home. Keep your mind open to the possibilities. Work with a good contractor and a good designer and you'll be amazed at what you can come up with.
4. Don't let the interior become an afterthought: I've seen a surprising number of additions that look great from the outside but seem to have no thought put into them on the inside. Flooring doesn't match. Trim doesn't match. Sometimes even the interior floor heights don't match. Remember that how the interior of your addition looks and flows on the inside is just as important as how it looks and flows on the outside. Use the same materials or the same style of materials. Match up ceiling, floor, and wall levels. Here again, no matter how you view the addition, inside or out, it should never look like an addition.
5. Create convenient access: This is another afterthought in a lot of additions. Let's say you have a three-bedroom, one-bathroom house, and you want to add a second bathroom. Typically, that's an addition that's going to have a good payback. But then you build the addition so that the only access to the second bathroom is through the kitchen. You now have a three-bedroom, two-bath house, but since the layout is lousy, you've actually gone backwards in terms of desirability and resale value.
Are you going to create a beautiful second-floor master suite that can be accessed only by a tiny spiral staircase from the family room? Is the only way into your great new kitchen via a convoluted hallway that leads through the laundry room?
When planning your addition, never lose sight of how you're going to access the new spaces, and make sure that access is both convenient and inviting.
6. Don't overwhelm your lot: Granted, room additions are expensive. So when you're doing one, and all those workers are onsite, there's a temptation to get as much square footage as you can. But don't cram your lot full of house. Remember that open space is important as well, both to you and your family, and, later on, to potential buyers.This is a good time to go back to Rule No. 1 and reconsider the "why" part of your room addition. Don't add space just to add it -- stay focused on your overall goals.
7. Understand the legalities: There are lots of rules and regulations that come into play regarding room additions. These include property line setbacks, zoning restrictions, and restrictions imposed by homeowner associations and architectural review committees.
In some historic areas, your addition may have to comply with certain historic guidelines. In other areas, there may even be solar shading restrictions that limit the height or the orientation of your roof line. Be sure you check into all of this before you get too far along with your planning.
Wednesday, July 7, 2010
Home Refinancings Not As Numerous As Expected With Record Low Mortgage Rate
By STEVE BROWN / The Dallas Morning News
With 30-year home loan rates near 4.5 percent, refinancing is back in fashion.
But local mortgage reps say they are not seeing the flood of business they anticipated.
"You would think that the refi business would be blowing and going with interest rates at 50-year lows," said Billy Parker of Old Capital Residential Lending. "We are seeing a little upswing but not the massive amount of refi borrowers that we would expect at these interest rate levels."
The nationwide cost of an average 30-year home loan was 4.58 percent last week, according to mortgage giant Freddie Mac, which tracks mortgage rates. That's the lowest such rate the mortgage company has reported since it started business in the early 1970s.
The fall in home finance costs comes at a time when "the economy struggles to gain momentum and inflation remains very low," said Freddie Mac economist Frank Nothaft.
So with inflation and interest rates expected to rise, why aren't homeowners rushing to take advantage?
"What we are seeing is that the pool of homeowners who are credit-worthy and have stable jobs have already refinanced," Parker said. And some borrowers who would like to capitalize on the low mortgage rates can't because either they can't meet tougher underwriting standards or the values of their homes have declined. "I have lost at least six refi loans this year due to [low] appraisals," Parker said.
Despite obstacles, more consumers across the country are trying to refinance. Nationwide home loan refinance applications were up more than 12 percent in the week ending June 25 to the highest level since early 2009, the Mortgage Bankers Association reports.
At the same time, home purchase mortgage applications were down to near 13-year lows. But in North Texas, homebuyers now dominate the mortgage business, some lenders say. "Right now, I'm seeing refis at about 25 percent to 30 percent of all applications," said Mark Raskin, a senior loan officer for PrimeLending. "Our purchase business in Texas has not slowed down at all. "In fact, we are continuing to see an increase in purchase applications," Raskin said.
Many homeowners who have already locked into lower rates would have to see even further cuts before getting back into the loan market. "Actually, our refi orders are down significantly versus the strong first six months of last year, when lots of folks took advantage of rates between 4.75 percent and 5 percent for 30-year fixed," said Britt Fair, chief operating officer at Hexter-Fair Title Co.
"Most homeowners either don't qualify or already refinanced and don't want to incur the transaction costs for such a small rate improvement." Fair said "substantially higher" numbers of higher-priced homeowners are refinancing. A year ago, the cost spread on these "jumbo" loans was much higher, he said.
With 30-year home loan rates near 4.5 percent, refinancing is back in fashion.
But local mortgage reps say they are not seeing the flood of business they anticipated.
"You would think that the refi business would be blowing and going with interest rates at 50-year lows," said Billy Parker of Old Capital Residential Lending. "We are seeing a little upswing but not the massive amount of refi borrowers that we would expect at these interest rate levels."
The nationwide cost of an average 30-year home loan was 4.58 percent last week, according to mortgage giant Freddie Mac, which tracks mortgage rates. That's the lowest such rate the mortgage company has reported since it started business in the early 1970s.
The fall in home finance costs comes at a time when "the economy struggles to gain momentum and inflation remains very low," said Freddie Mac economist Frank Nothaft.
So with inflation and interest rates expected to rise, why aren't homeowners rushing to take advantage?
"What we are seeing is that the pool of homeowners who are credit-worthy and have stable jobs have already refinanced," Parker said. And some borrowers who would like to capitalize on the low mortgage rates can't because either they can't meet tougher underwriting standards or the values of their homes have declined. "I have lost at least six refi loans this year due to [low] appraisals," Parker said.
Despite obstacles, more consumers across the country are trying to refinance. Nationwide home loan refinance applications were up more than 12 percent in the week ending June 25 to the highest level since early 2009, the Mortgage Bankers Association reports.
At the same time, home purchase mortgage applications were down to near 13-year lows. But in North Texas, homebuyers now dominate the mortgage business, some lenders say. "Right now, I'm seeing refis at about 25 percent to 30 percent of all applications," said Mark Raskin, a senior loan officer for PrimeLending. "Our purchase business in Texas has not slowed down at all. "In fact, we are continuing to see an increase in purchase applications," Raskin said.
Many homeowners who have already locked into lower rates would have to see even further cuts before getting back into the loan market. "Actually, our refi orders are down significantly versus the strong first six months of last year, when lots of folks took advantage of rates between 4.75 percent and 5 percent for 30-year fixed," said Britt Fair, chief operating officer at Hexter-Fair Title Co.
"Most homeowners either don't qualify or already refinanced and don't want to incur the transaction costs for such a small rate improvement." Fair said "substantially higher" numbers of higher-priced homeowners are refinancing. A year ago, the cost spread on these "jumbo" loans was much higher, he said.
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