If you’re in the market for an Estate Home in the exquisite neighborhood of S. Kennedy Road in Los Gatos California, then this home is well worth taking a preview via our virtual tour. Gorgeous and well manicured grounds, a custom pool and in home sauna are just a few of the delicious qualities that characterize this amazing Los Gatos Estate!
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Private Mortgage Insurance Rates Skyrocket (for Home Buyers That Still Qualify)
We posted the article below on our Silicon Valley Real Estate Update blog today which was written by our guest blogger ’s at Bring The Blog.
The article addresses the growing problem facing many home buyers who are now being required to pay Private Mortgage Insurance, whereas about a year ago they would have been able to avoid this dreaded extra monthly expense. Many buyers who are often forced to either come up with larger down payments than they would have just a year ago, or pay the dreaded PMI which can run into the hundreds of dollars a month, are sometimes forced out of the market as a result of the added monthly payment burden PMI can pose for them. This is not a pleasant reality for buyers who have less than 20% to put down. We used to encourage our clients to do what is called an “80/10/10” or “80/15/5” loan (with the 80% being their first mortgage, the 10% or 15% being their second mortgage-often a Home Equity Line of Credit {aka HELOC} and the last number representing their down payment contribution-either cash or equity from another property typically).
Welcome Silicon Valley Real Estate Aficionados and Data Junkies!
We at Team Ardizzone & Howmiller - Rick Ardizzone, John Howmiller &♦ Jeff McLaughlin - are pleased to announce that we recently joined two Team Blogging platform services [read Jeff McLaughlin’s personal Real Estate Blog at Silicon Valley Real Estate Update ]. We have chosen this platform in order to provide our clients, family, friends and readers with a daily source of the latest industry news and market updates on the local Los Gatos Real Estate Market, Saratoga Real Estate Market, Monte Sereno Real Estate Market, and the the greater Silicon Valley Real Estate Markets . We also blog about news and trends for the national and World Wide real estate and mortgage markets. Occasionally we venture into broader Macro-economic News and Economic Trends as well. Advice on Home Owners Tips & Tricks will be another subject we enjoy delving into as inspiration arrives. In Short, if it affects our industry we hope to discuss it with you right here on our Blogs!
In Pictures : Mortgage Guidelines Get Tough For All Borrower Types — Quickly
It’s not your imagination — getting approved for a home loan is becoming increasingly more difficult.
Taken from the Federal Reserve’s quarterly survey of 84 banks, it illustrates the changing dynamic of mortgage guidelines.
Most notable is the steep curve for “prime” mortgages, a type of home loan given to applicants exhibiting:
- A well-documented credit history
- High credit scores
- Low debt-to-incomes
Americans have come to expect sub-prime loans to be tougher, but it’s the sharp tightening of prime guidelines shows us that nobody is exempt from the newfound underwriting prudence that banks are exhibiting right now.
If you plan to buy or remortgage a home over the next year, consider a popular expression in financial circles — the trend is your friend.
Know that mortgage guidelines will get tougher before they get easier and applicants on the cusp of being approved today will almost certainly be denied a mortgage three months down the road.
