July 05, 2011

Fannie Mae and Freddie Who?

Posted to Brad & Liz Sears, Buyers, First Time Home Buyers, Owners

Who are they and what are they doing with my mortgage?

We so often hear the names Fannie Mae and Freddie Mac in connection with real estate and home mortgages. Who are they? Do they have any effect on my mortgage? How do I find out if my current mortgage is owned by Fannie Mae or Freddie Mac?

1. Who is Fannie Mae?

In 1938, following the Great Depression, Franklin Delano Roosevelt developed a plan known as The New Deal. It included the National Housing Act. As an amendment to this act, the Federal National Mortgage Association was established. This new association was given the nick-name of Fannie Mae.

Fannie Mae was created to provide local banks with federal money to finance home mortgages in order to make home ownership available to more Americans. Through the years, Fannie Mae has been a giant presence in the financial history of our nation. Some of it good; enabling millions of people to buy a home and some of it not so good; mismanagement, illegal political contributions resulting in gigantic fines, takeovers… you get the picture. Fannie Mae itself has split and there have been many splinter groups. Freddie Mac is one of them.

2. Who is Freddie Mac?

Freddie Mac is the nick-name of the Federal Home Loan Mortgage Corporation formed in 1970. This corporation was created in order to provide a secondary mortgage market.

3. What do they do?

Fannie Mae and Freddie Mac buy loans from approved mortgage sellers for cash or a mortgage backed security. The ‘mortgage company’ that you deal with such as Wells Fargo or Bank of America is actually only the ‘go between’ for you and your mortgage owner who is quite likely Fannie Mae or Freddie Mac.

4. How do I find out if my mortgage is owned by Fannie Mae or Freddie Mac?

It’s quite simple to determine if your mortgage is owned by one of these entities. Each of them has provided an internet site that allows you to find out if they own your mortgage. All you have to do is provide your address information and indicate that you are authorized to access this information. For Fannie Mae, go to www.fanniemae.com/loanlookup/. For Freddie Mac, go to https://ww3.freddiemac.com/corporate/.

5. What impact do Fannie Mae and Freddie Mac have on the economy?

Fannie Mae and Freddie Mac are big guns in the group called the GSE. The GSE is Government-Sponsored Enterprise. In 2008, the status of the GSE was threatening collapse. This was a primary cause of our current economic conditions. If they failed, the amount of money that could be lent to home buyers would have plummeted which would have severely limited the number of home buyers. The housing crash would have been much worse. Both Fannie Mae and Freddie Mac were placed into conservatorship of the FHFA (Federal Housing Finance Agency) to help prevent this from happening again.

6. What does this all mean to me?

This market has created some amazing opportunities for buyers. In any investment, it makes sense to ‘buy what’s on sale.’ Those who are selling their homes need buyers. Ask The Sears Team how you can ‘cash in’ and benefit from current market trends. This in turn will help local sellers sell their homes.

For all your real estate needs, contact your local real estate expert!

Posted by:  Brad & Liz Sears





March 30, 2011

East of Antelope Island, Davis County, Utah

Posted to Buyers, Colin Blackner, Northern Utah Recreation & Attractions

When you hear the word Utah you might think of the Bonneville Salt Flats, Skiing in Park City, Canyon lands, or Boating at Lake Powell. Thank goodness for the internet and your special know-how and ability to search and find millions of sites and blogs regarding what it’s like to live in Utah with its many treasures. Half way into most peoples search of Utah you may hear the words “I didn’t know that.” As you look close at that familiar map of the USA, that map we all grew up with, you’ll see that little patch of blue right in the middle of the Mountains: the famous “ can’t sink when you swim in it” Great Salt Lake located in Utah. If you drill down and move in for the bird’s eye view you’ll notice a big patch of dirt (42 square miles of it and known as the largest Island inside the United States), it’s called Antelope Island, with its 600 Bison and millions of waterfowl.

NOW if you scan on your map just 7 miles East of Antelope Island you’ll see Davis County and locate 15 amazing cities...

Websites for Davis County Cities

If you are relocating to Utah or simply moving closer to the Salt Lake City area, consider starting your search here in one of these 15 cities in Davis County. Thousands will be honored to have you as a neighbor.

Waking up each morning to see the mountains just yards away and then going to bed with Antelope Island sunsets sounds like a sales pitch, however it’s just the brutal truth. As a Utah Realtor living East of Antelope Island may I extend a special invitation for you to look me up or contact me personally? I would love the opportunity to assist you in locating the perfect home for you or your family to purchase or rent in Northern Utah and would be thrilled to answer any questions you have about living in Davis County or any other location in Utah.

Sunsets at Antelope Island and Bison

Summer fun at Lagoon

Hill Aerospace Museum Fighter planes

Print out this Utah map

Posted by:  Colin Blackner





March 01, 2011

Should I Wait to Make My New Home Offer?

Posted to Buyers, Steve Randall

We have a number of potential buyers wondering if they should wait until the market hits rock bottom before making their offer to buy a new home. To answer that question, you have to look not only at the price (the amount you pay for the home), but also the total cost which includes principle, interest, and PMI.  In today's Keeping Current Matters Blog, Steve Harney shares his insight and an example of why now is the best time to buy because interest rates are on the rise, moving the cost to purchase a home higher. Enjoy this post from Steve Harney.

Find Out if the Market Has Stabilized in Northern Utah Right Now!!!

Posted by:  Steven Randall





February 11, 2011

Waiting for Superman in East Layton?

Posted to Buyers, Neighborhood Market Trends, Sellers, Steve Randall

With spring just around the corner there are many who are wondering if now is the time to list their home. In fact, there are more who want to actually tour homes when the weather begins to warm up so there is some validation to that train of thought. For example, in East Layton there are several neighborhoods that lie east of Fairfield Road and west of Highway 89. These three neighborhoods are Summer-Haze, The Oaks at Mutton Hollow, and Oak Crest. This area is a popular area of East Layton to live. There are also some larger lots on Mutton Hollow Road with some newly remodeled homes that have a great deal of street appeal.

In the past year there have been seven homes sell in these neighborhoods. The average price per square foot for these homes has been $72.00. Now, every seller when they list their home wants to get the most for their home and sell it in the least amount of time. However, as a seller, we have to be careful to avoid thinking that our home is so much better than any other in the same market place that it will demand a much higher price. When a seller overprices a home hoping for the unique cash buyer, we call it “waiting for superman”!

In these three neighborhoods, there are currently 10 listings for sale in these late winter months and most are priced correctly in the $70 to $75 per square foot range. One is as low as $58 per square foot and two are at $84 and $138 per square foot. If you are a buyer and looking online, which homes will you tour? Most buyers will tour the homes that are priced correctly in these neighborhoods. The average listing price for the active homes on the market is almost $81.00 when the market is $72 per square foot or 13% above the average where homes are really selling. Overpricing a home waiting for superman is just wishful thinking. For sellers wishing to actually sell their home this spring, price it right for the spring market. Please remember, there will be more competition that will put downward pressure on your listing price so it is good to be below that average amount.

If you can’t wait for superman to show up to sell your home then let us help you with real-life pricing so that you can truly sell your home for the most money in the least amount of time. Contact me at for pricing assistance and current market information in your neighborhood. Here are the year-end results for Davis County where these three neighborhoods reside in the East Layton area.

Posted by:  Steven Randall





January 31, 2011

Finding a Diamond in the rough-- Lease to own

Posted to Buyers, Colin Blackner



As you conduct your search on the Internet for lease to own opportunities, you’ll come across hundreds of Real Estate bargains speckled throughout each neighborhood.

READY, SET, GO, you’ve just left your 1st House; what a disappointment, you discover the home had been rented out 7 times in the last 3 years.  

2nd House; you just barely get out of your car to walk up the driveway when out of nowhere a policeman drives up in his car and sympathetically delivers the bad news that he had just busted the former residents and it’s a Meth house, what are the odds? 

3rd House; you just found the perfect home, finally a place to hang your hat. Terms and conditions are revealed. $50,000 down $600 Pet deposit, credit and background checks, minimum of 12 References and no mercy in this life or the life to come if PAYMENTS ARE LATE.

Too many prospective buyers feel this kind of frustration while trying to find a home for their family, especially for a family that has experienced financial hardships from the loss of employment or have been victims of circumstances beyond their control. Most need 12 to 24 months to repair credit and put their affairs in order. 

The Beauty of Lease to own is that there really is a perfect situation or home out there that will fit any family’s budget, or circumstances. It all starts with a fired up Realtor that’s willing to demonstrate his expertise and creativity. You never want to concede to just a few selections from your internet search. You’ll find that a vigilant Realtor will be excited to help you find a “diamond in the rough home,” which simply means a home that’s only had one or two owners. With this brings the peace of mind that this house will be kind of special and deserving of your family and that you have taken the necessary steps towards preparing the way for a better tomorrow for you and your family.

Time to Put your Realtor to Work

1. Ask your Realtor to start sending out emails to all agents who have listings that are 5 months old or older. There’s a good chance the selling terms of that home will be changing in a few weeks. You want to be 1st in line for a lease to own option to become available.

2. Ask your Realtor to research all the sales that have fallen through due to financing. The owners may have an offer pending on the sale of their home. A lease to own deal may save the deal and the day.

3. Have your Realtor screen 100% of those internet leads you have saved. Maybe there will be one that’s worth taking a 2nd look at. The MLS will provide us with up to date information and powerful reports to assist us.

4. If you see a home you like that’s for sale by owner, allow your Realtor to approach the seller on your behalf to negotiate a lease to own contract. Perhaps a fair offer may be the only activity this owner will need to entertain it.

Always just a phone call away,
Colin Blackner
Cell (801) 725-5463

Posted by:  Colin Blackner





January 27, 2011

Want to Live Near Snow Basin Ski Resort?

Posted to Buyers, Owners, Sellers, Steve Randall

Snow Basin was the host of the 2002 Winter Olympic downhill race course. I have traveled down its steep slopes many times but never at the speeds of the great skiers. A bedroom community near Snow Basin is Eden, Utah. We have several listings in the area as well as several lots to build a summer and winter retreat. It is a great summer and winter recreation area and priced much lower than Park City.

An offer came in on one of our lots yesterday. The current list price was about $70,000 down from $110,000 just a year ago. The reason for the reduction in price has to do with supply and demand. There are currently 38 competing lots for sale about the same size as our listing. There is one listing that is priced about $20,000 less but it has a slope which increases excavation costs and makes the lot less usable. With so many lots available, why did our lot get the offer?

Pricing! The seller priced the lot to attract any buyer who is ready to buy now!

Should sellers wait to put the Eden lots on the market until spring? It is predicted that more lots will sell this year. However, there are many sellers who are waiting to put their homes on the market in the spring hoping the lots will sell for more. Those who want to sell a home but have not actively listed their home at this time, contribute to what we call the “Shadow Market” inventory. When Shadow Market homes get added to the active market, supply will increase over demand keeping prices the same in Eden…or maybe even dropping a little more in 2011.

Point to Ponder:

If you are buying in Eden, buy now before interest rates eat up the savings you have with heavily discounted lots.

If your are thinking of selling, you will get more for your property in the first half of the year than selling in the second half of the year. For more details, never hesitate to .

Posted by:  Steven Randall





January 25, 2011

Is Fruit Heights a Buyer's Market?

Posted to Buyers, Sellers, Steve Randall

Yesterday I attended a closing with a client who had just purchased a bank foreclosure property in Fruit Heights. The house was a tri-multi level home with four bedrooms and in very good condition, surprisingly so for a bank owned property. The price for this 2,900 square-foot home was $246,000 with the seller paying closing costs. The backyard abuts to the golf course and the home has a beautiful view of the mountains and has close freeway access to Salt Lake.

The buyer was excited to have this home and felt good about the price per square foot he had paid. As we looked at the market conditions in Fruit Heights the absorption rate, which measures the rate of homes sold in a given period, ranged from 9.33 months to 11.20 month of inventory in the past twelve months. For sellers in Fruit Heights that is not good news because inventory over 7 shows that the market is still a buyer’s market and means downward pressure for home values in the area. The good news is that we seem to be making a turn and there is more good news that we are seeing now than we have in the past.

There remains some great inventory in Fruit Heights for buyers with values ranging from the low $100,000s to values that exceed a million dollars. For information on buying a home in Fruit Heights and negotiating the best value, please at anytime. If you are a seller, then we can help you price your home so that it will sell based on current market conditions. We are happy to share the latest market data for Fruit Heights.

Posted by:  Steven Randall





January 21, 2011

The Privilege of being a Realtor

Posted to Buyers, Colin Blackner, Owners, Sellers

It’s always a bonus to get a complementary email back from a client. A few weeks ago one of mine read “Thanks again for everything Colin! We’re so grateful & glad that you knew about this house.” Well let me just say that you are very welcome, and thank you for allowing me to come to know your family.

Just think back, it wasn’t that long ago that you could list your home with a Realtor on a Monday afternoon and like magic it would be sold by Saturday morning with 2 more offers sitting on the back burner. The Market was so hot that Realtors were collecting salesman of the week awards (because in just 3 days someone would take you out). Hummers and BMWs were flying off car lots as successful agents bought them up, as self evidence of all their hard work and hustle. Then the housing market changed on us overnight. Are you kidding me? Who was ready for this? Not Me!

Fast forward to today. It’s January of 2011; everyone is a little smarter now. Buyers and sellers have learned to be patient. Realtors have gone back to what matters most and that’s managing their clients’ Real Estate needs and making sure that the very best service we can give brings home the desired results.

This is where I want to impress upon everyone’s mind that I fully appreciate the opportunity to be a Real Estate agent. Please allow me to share with you 3 simply reasons why I love this profession.

1. My number one is the opportunity I have to work with so many good people. The Real Estate Industry is loaded with trained professionals. I would say that it’s the most diverse profession in the world. You will find little league coaches, scout masters, doctors, attorneys, aerobics instructors, accountants, and even an elected Governor. I’m keeping good company.

2. Number two is the opportunity I have to assist my friends, family, neighbors, clients, or anyone who needs special help with their Real Estate questions. You can’t beat the amazing feeling one has when you’ve helped a family find their future dream home. Remember picking out your 1st bedroom?

3. This reason may seem a little selfish, but as a businessman and life-long sales professional, I can’t tell you how much we enjoy as Realtors to experience success at all levels in this industry.

  • We love to earn your business and confidence.
  • We thrive on selling your home FAST and want to exceed all your expectations of us and the Broker we represent. 
  • We’ve received special training on how to help our customers get through this market.
  • We won’t make promises we can’t keep.
  • But we’ll strap on our helmets and go to battle for you.

Thanks for reading.

 | 801-725-5463 | Layton, Utah

Posted by:  Colin Blackner





January 20, 2011

Dream Home For Sale in Tremonton, UT

Posted to Buyers, Justin Stevenson

All the real estate agents are saying it, all the financial experts are saying it, I bet all your relatives are saying it, and I am saying it………“NOW IS THE TIME TO BUY!” With prices down and interest rates still low, now would be a great time to purchase the home of your dreams.

Your dream home can be in Tremonton, Utah. The city of Tremonton is a wonderful place to live and raise a family. The official website of Tremonton states the follow about their city:

“Tremonton City has all the advantages of a rural life style and yet its residents can take advantage of all the amenities of the surrounding metropolitan areas. Tremonton has a Mayor/City Council Government with an appointed Manager. There are five elected members and a Mayor on the Council who are setting the pace for Tremonton’s future.

The City is a full-service city that takes pride in keeping taxes low while striving to keep city services at the highest standard possible. The city has its own services, including police, fire, ambulance, public works, cemetery, water/wastewater facilities, library, senior citizen/community center program, and are all committed to providing the city’s residents with the best care possible.“

625 N 2450 W, Tremonton, UT. It is a 3 bedroom, 2.5 bath single family home that has a total of 1857 sq. ft. The owners of this property are motivated and ready to sell. The currently listing price for this home is $159,000.

This great home was built at the end of 2009 and has a great cul-de-sac location. It has two tone paint, upgraded carpet, neutral colors, and a 300+ sq ft finished bonus room. It’s a clean home with all 3 bedrooms and laundry located upstairs. The master bedroom includes a walk in closet and its own bath. Also included are large closets with organizers in all bedrooms. It has a great amount of storage space including built in shelving in the garage. It also features knotty alder cabinets plus a large corner pantry in a beautiful kitchen. The yard is fully landscaped including auto sprinklers and a vegetable garden. It’s a must see! Click here to see the virtual tour on this property.

To set up a time to see this home or any other home in the area, please contact me at 801-710-8081 or contact me by email at

Posted by:  Justin Stevenson





January 18, 2011

How To Predict the Next Real Estate Bubble!

Posted to Buyers, Owners, Sellers, Steve Randall

An experienced real estate investor knows from following appreciation values in the past that real estate normally increases in value about 25% to 29% every five years. The normal appreciation since 1980 has been about 5% to 6% each year. However, from 2000 to 2006, real estate values increased a whopping 89% during those years. This was due to low interest rates, lenders willing to lend, and a desire by government to make sure everyone had a home… and nobody seemed to care if the buyer was qualified or not!

From history, we can predict future bubbles by watching past appreciation rates. There are times where real estate values will accelerate more than 6% per year but be wary of buying when values are increasing 14% - 15% each year because it will not be sustainable over the long run. If you roll the dice and hope to get in at the right time there is greater risk you assume… as so many buyers can now verify. It is hard to time the market and that is why so many are underwater at this time.

POINT TO PONDER:

There is an old saying that “pigs get eaten.” Meaning that when you try to capitalize on appreciation rates way above the norm there is a good chance it will come back to haunt you. Real estate is a great investment if bought responsibly. Now is a great time to buy real estate even though prices may drop another 2% to 6% in 2011. It is hard to time the market perfectly, but with prices down, inventories high, and interest rates low… the stars are now aligned. If you try to save a few thousand dollars more by waiting for a lower purchase price you will likely be caught on the other side of the equation with higher interest rates. Rates are now on the move up from their lows of several months ago. Overall cost would show now is the time to buy rather than waiting for a lower home price. Thanks to Steve Harney at Keeping Current Matters for pointing out that monthly costs now will be lower than if interest rates rise in the future.

Posted by:  Steven Randall





January 18, 2011

Is Real Estate Still A Good Investment?

Posted to Buyers, Owners, Sellers, Steve Randall

Last week I was driving to a HOA meeting in Salt Lake and listening to a popular talk show host on Fox News, Sean Hannity. The topic of discussion dealt with the economy, jobs, and the current confusion of where people should put their investment money. Sean mentioned that he had money to invest but did not trust the stock market even though it was doing much better now. He didn’t know much about commodity investing… he knew gold was doing well but wasn’t sure about how much longer that would last. He mentioned real estate but with the recent downturn of home values, foreclosures, and short sales he wasn’t sure about that either.

If you return to the year 2000 and had $100,000 to invest in the Dow, S&P, NASDAC, or real estate… what would have happened to that investment in the year 2011? With Dow Jones you would have gained 5.8% and your investment would now be worth $105,800. With the S&P and NASDAC you would have lost money and the value of your investment would now be $82,000 and $66,000 respectively. Had you invested in real estate, your $100,000 would now be worth $145,300. At the top of the bubble you could have earned 89% on your money. However, if you bought at the top of the bubble you are now likely underwater. The great thing about real estate is that if you hold on long enough, it will come back and if you rented your property you would have had income even though values might have declined.

POINT TO PONDER:

Despite real estate’s current dilemmas, for the long term it has returned the highest ROI in the last 10 years. With all the talk about changing social security, now would be a great time to start buying real estate to insure that the golden years of retirement remain golden. While property values have fluctuated in recent years, rental values have remained stable and in some areas are on the increase. Now is a great time to buy real estate.

Posted by:  Steven Randall





December 21, 2010

Canyon Terrace Condominium 12-20-10.docx

Posted to Buyers, HOA, Justin Stevenson, Ogden

One community in the Ogden area that can’t be ignored is Canyon Terrace Condominiums. This wonderful community was built in 1985 and has become a true gem to the Ogden area. There is one property that I would like to highlight in this community that is currently on the market for sale. The unit that is for sale is 1452 S 1650 E Ogden, UT 84404. This property is currently listed at $99,500 and you are truly getting a deal at this price. The unit features 3 bedrooms with 1.5 bathrooms and total square footage of 1674. This Condo has been recently updated in the kitchen, bathrooms, and flooring. One thing that separates this unit from other units in the community is that this property has central A/C, it is an end unit, and it has incredible mountain views from the master bedroom.

The Canyon Terrace Condo HOA really helps keep this community a very desirable one. The HOA covers the water, sewer, garbage, as well as cable TV, and covers the landscaping during the spring and summer and the snow removal during the fall and winter.

Overall, this property is a great buy and is worth a second look. Check out the virtual tour.

If you have any questions about this property please contact me at or my cell 801-710-8081.

Posted by:  Justin Stevenson





December 17, 2010

When is a good time to BUY a home?

Posted to Buyers, Justin Stevenson

Many of my close friends and family, knowing that I am in real estate, always ask me at all the family parties “when is a good time to buy a home?” My answer is always the same……NOW! It is not because I am a salesman and I want their business, it is because I truly believe that now is the best time to buy real estate and let me explain why. One reason why now is the time to buy is because interest rates are at an all-time low. Many people don’t understand why this is such a big deal but it is a big deal. Buying a home with a low interest rate saves you so much money. The following chart from one of the great real estate trainers, Steve Harney, explains how much you can save:

*For the full article with this information go to http://kcmblog.com/2010/12/10/impact-of-rising-rates-when-buying-a-home

Another reason why now is a great time to buy is it is a buyer’s market which means that the pricing of a home is under market value so all the buyers are paying less than what the property is worth. So many people say they are waiting for a deal before they buy something, well folks there are tons of deals out there now.

If you have any interest in buying a home in the near future please contact me and I would love to help you find a great deal. Please contact me at or my cell at 801-710-8081.

Posted by:  Justin Stevenson





March 19, 2010

Calculating and Analyzing Absorption Rate

Posted to Brad & Liz Sears, Buyers, Sellers

Have you ever wondered how fast homes are selling in your neighborhood right now? There is a way to measure it that will tell you which way the market is heading. Absorption rate is the measurement of the rate of sales in any neighborhood. For example, if 50 homes are sold in a month’s period, and there are 100 homes for sale in the market place, the absorption rate is 2; meaning that there are two months of inventory currently in the marketplace.

A balanced market of buyers and sellers is defined at 5-6 months of inventory. A “2” absorption rate means that the sellers have the advantage. A “9” means that the market favors the buyers and sellers can expect to discount their property values in order to sell their home. Included is a chart that show how the absorption rate can also indicate if the market is appreciating or depreciating.

For specific information on your neighborhood please contact me for a free absorption report.

Posted By: Brad & Liz Sears





March 16, 2010

Short Sales and Foreclosures --- A Trend or Tidal Wave

Posted to Buyers, Sellers, Short Sales / Foreclosures, Steve Randall

Short sales are not new to real estate practitioners but the number of foreclosures and short sales on the Northern Utah market currently is higher than we have experienced in many years. The economic conditions have resulted in job loss and pay reduction for many causing a rise in delinquencies and stress on homeowners. In 2009, nationally, there were 1.9 million properties where foreclosure actions were started. This year the number is anticipated to increase. We certainly are seeing our share of short sale and foreclosures in Utah.

What is a foreclosure? Some may think of a foreclosure as a greedy lender taking over an owner’s home. Others may think of abandoned properties that cause a loss of value to the neighborhood and community. Still others may see this as a way for buyer’s to pick up properties on the courthouse steps for pennies on the dollar.

A simple definition of a foreclosure is a legal process whereby the borrower is deprived of their ownership interest in a property because of nonpayment.

The reality of the situation is that lenders really do not want these properties back on their books and with some exceptions, most buyers pay close to market price for homes that are in good condition. Short sales, by definition mean that the borrower owes more on the home than the home is currently worth in the marketplace. As property values decline, more and more northern Utah homeowners are facing this possibility.

Many borrowers work with their lenders to negotiate a short sale rather than letting the property go into foreclosure. A short sale allows the borrower a way out of the mortgage with less impact on the borrower’s credit and allows the borrower to re-enter the marketplace in 2-3 years.

A foreclosure will be on the borrower’s record for at least seven years and can have a negative impact on the borrower’s credit of 200 points or more. As of April 5, 2010, the Federal Government is encouraging lenders to pursue the short sale remedy first before taking the foreclosure option.

There are many websites that give information on how to proceed with a short sales or foreclosure. For information on foreclosures in Utah click here.

For more information or assistance with a short sale or foreclosure action please contact me at your earliest convenience.

Posted By: Steve Randall





January 05, 2010

Reasons Why Now Is the Time to Buy

Posted to Brad & Liz Sears, Buyers

We keep hearing that now is the time to buy because of “low interest rates,” “low house prices,” “tax credits” and on and on. But, you may ask, “What does that mean to me?” The most practical way to look at it is, “How will all of this affect my family’s budget?” because after all, that is ultimately what makes a difference to us on a month to month basis.

Let’s say that you have given yourself $1200 a month to go towards housing. Most people have a pretty good idea of what quality, size and location of home they can expect for $1200.

First, let’s consider the impact of Low Interest Rates:
It has been said that when the economy is balanced and where it ought to be, rates should be between about 7 and 8%. Right now rates are at 4.875%. It also has been said (by virtually every economist out there) that rates are expected to rise significantly once the Federal Government ceases buying mortgage backed securities which is currently powering the market towards lower rates. At 4.875%, your $1200 per month would buy you a home worth about $180,000. However, when rates go to about 7.5%, $1200 will only buy a home worth about $140,000. Pretty big difference.

Next, let’s consider the impact of Low House Prices:
Home values have gone down. A home that is worth $180,000 today was worth, on average about $210,000 during the peak in 2007. Home values will go back up. They always do, especially here in Utah where the economy is more stable than many other areas in the United States. According to information gathered from the Historical Mortgage Rate Data page from www.mortgage-x.com, and illustrated in the chart below, we see that in 2007, $1200 per month would have purchased a home worth $156,000.

If you compare your purchase of a home now for $1200 a month to someone who purchased a home back in 2007 for $1200 per month, you would have $54,000 more of a home while you are BOTH paying the same $1200 a month! ($210,000 value compared to $156,000)

Third, let’s consider the Tax Credit:
The Federal Government is offering tax credits worth $8,000 for First Time Home Buyers and $6500 for Repeat Homebuyers (certain restrictions apply) for the purchase of a home. This money could be immediately used to make a principal payment on your mortgage loan knocking off possibly years of payments. You could set it aside for a rainy day fund for all the many expenses that can come from owning a home. You can literally do anything you want with it. This definitely sweetens the deal when considering purchasing a home now.

And as if all of that was not reason enough, did you know that FHA loans are assumable? This means that if you lock in a 4.875% rate and later decide to sell your home, your buyer can assume your loan and keep your 4.875% rate so long as they qualify for an FHA loan! If you are selling the home for more than you owe, the buyer would simply need to pay you the difference separately which they can do many different ways. When you go to sell, imagine being able to offer a rate around 2.5% less than what they can get through any lender!! What a selling point!!

For more information about buying now and to view all the listed homes for sale in Utah, please visit my website at www.TheSearsTeam.com.

Posted By: Brad & Liz Sears





January 05, 2010

Millstone Manor

Posted to Buyers, Justin Stevenson, Sellers

In the 84404 area there is a condo subdivision that is one of the greatest places to live in this area. This subdivision is called the Millstone Manor. The Millstone Manor was built in 1986 but looks and feels a lot newer than that. The location of the Millstone Manor is one that covers it all. With the condo location right at the month of the canyon is makes it easy to zip up the canyon to go skiing or snowboarding at the local ski resorts such as Wolf Mountain and Powder Mountain, also during the summer it allows you to fish and ski on the Pineview Reservoir. On the other hand the Millstone Manor is located close to I-15 as well as downtown historical 25th St. At the Millstone Manor during the summer you may see a lot of happy people because there is a pool located in the middle of the subdivision that helps keep the residents cool on those hot summer days. One other benefit we can’t ignore is the property backs right up to the Ogden River which makes Millstone Manor residents feel as if they are at one with the nature.

In the Millstone Manor subdivision there are currently six properties that are on the market for sale. Of these six there are many shapes and sizes. One property that I would like to tell you a little more about is unit number ten in building one. This property is a two bedroom one bathroom condo that has the best view of the river in the whole complex. This property is currently listed below the rest that are for sale. Unit number ten is listed at $72,000 and would make any family happy.

If you are currently looking for a property in the Ogden area then Millstone Manor is the place for you. If you would like more information about unit #10 that is listed for $72,000 please call or email at 801-710-8081 or justin@welchrandall.com.

Posted By: Justin Stevenson