HELP. I’ve fallen and I can’t get up!

The U.S. just lowered the size of mortgage it will guarantee.  The current conforming loan limit, which determines the maximum size of a mortgage that the Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac can buy or guarantee–expired Friday, Sept. 30. 

Beginning Oct. 1, the conforming loan limit was decreased to $625,500, from the current $729,750 limit, though the majority of counties fell far below the $625,500 maximum.

Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan and require a higher down payment, increasing the monthly payment and negatively impacting housing affordability for California home buyers.

The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) estimates that more than 30,000 California home buyers statewide will be impacted by the change to the conforming loan limits.

I prepared you for this event for many months.  What does this mean to you?  If you need to sell a home in the $600K range, your pool of qualified buyers is now smaller.  Be sure to put your home on the market in October before the price decreases in the next few months.  If you have a home in the 400’s or 500’s.  It is likely that your value will decrease a bit later as a result of buyers being able to buy larger homes under the new $625,500 conforming loan limit.  I expect that SFR homes under $400,000 will not be as affected.  Buying a condo?  Prices recently fell as a result of most communities losing their FHA approval.  If you don’t have a decent down payment, please call me and I will explain your options and see if I can help.

Fred says that Lake Forest has gone to the Dogs!

Looking for a holistic way to reduce stress, cholesterol and obesity? Get a pet. Statistics show that 62% of American households own a pet. According to a national survey, most pet owners say companionship, love, company and affection are the No. 1 benefits to owning a pet.

We know that pets make good companions and decrease loneliness, but numerous studies have shown other profound health benefits of owning a pet:

1. Pets help recovery from heart attacks. A National Institutes of Health (NIH) study of 421 adults found that dog owners had a better one-year survival after a heart attack, compared to those who did not own dogs.

For the rest of the health benefits of owning a pet, click here: http://rismedia.com/2011-04-05/pets-can-reduce-stress-cholesterol-and-obesity/

To see what pets are available to adopt in Lake Forest: http://www.adoptapet.com/adoption_rescue/9244.html

Bonehead of the Week

Bonehead Fred

A “way too stupid to be a criminal” bonehead award goes to Daniel E. Rahynes in Harrisburg, PA. Rahynes entered a local bank, walked up to the teller, and asked to open a bank account. He handed over two forms of identification, and began filling out the paperwork. He then announced he had made a mistake, and actually was there to rob the bank. He fled with a small amount of money, but left behind his and application. Within a few hours, Rahynes was behind bars. - Patriot-News

Fred says: If you don’t want to be sorry for a move you made- or better yet – a move you DIDN’T make.  It would be smart to buy a home while there are still affordable places left and loans to buy with.   

Fred’s Quote of the Day

Words of wisdom from Fred, the black lab…

Fred's Quote of the Day

Fred’s Quote of the Day

Fred’s “Quote of the Day”

Fred’s Quote of the Day

Lake Forest Fred’s “Quote of the Day”

Fred’s Quote of the Week:

“Envy is the art of counting the other fellow’s blessings… instead of your own.”

Humor Columnist, Harold Coffin

Lake Forest Fred’s “Quote of the Day”