New Listing!

442 Main Ave # A6 was just listed for $2,850 / month.

This luxury 2 BR, 2.5 Bath townhouse offers a granite and stainless steel kitchen, hardwood floors, a 1 car garage, and over 2,000 SF of living space!  This condo is conveniently located next to the Merritt 7 buildings.

For more information on this particular condo, visit:  http://cmls.paragonrels.com/publink/default.aspx?GUID=2ed85d1c-7db0-4d17-934f-ea5be668c0c6&Report=Yes

 

For more information about Norwalk real estate, or for answers to any questions, email Todd at www.toddturcotte.com

 

It’s a Good Time To Refinance

By RACHEL LOUISE ENSIGN

A version of this article appeared Mar. 24, 2012, on page B7 in someU.S. editions of The Wall Street Journal, with the headline: It’s a Good Time To Refinance.

 

For homeowners who have been waiting for interest rates to fall even further before refinancing, it might be time to pull the trigger on a deal. Rates are moving up—and could stay higher for a while, experts say.

The average rate for a 30-year fixed-rate mortgage climbed to 4.08% for the week of March 22, up from the record low of 3.87% it hit in February, according to Freddie Mac. Rates on 15-year loans were up to 3.30% last week from the record low of 3.13% reached earlier in March.

While rates still are below where they were a year ago, some economists say they are likely to keep rising throughout 2012 and into 2013. That means your window of opportunity to lock in a rock-bottom rate might be closing soon.

“If you’re considering refinancing, there’s really no point in waiting,” says Frank Nothaft, the chief economist at Freddie Mac.

Tim Barge considered refinancing the mortgage on his Buford,Ga., home for the last year and a half, but wanted to get the best rate possible. Last month, the 42-year-old information-technology professional decided to take the plunge.

“I was at the point where I just had to do something,” he says. “I knew the rates weren’t going to go much lower” than the 3.875% he locked in.

He opted for a 30-year fixed-rate mortgage, which cut his monthly payment from $1,920 to $1,480.

Freddie Mac, Fannie Mae and the Mortgage Bankers Association all are projecting that rates will keep ticking higher this year and beyond. Freddie Mac and the Mortgage Bankers Association predict the average rate on a 30-year fixed-rate mortgage will reach 5% next year.

The biggest culprit in rising rates: the spike in yields on 10-year Treasury notes over the past two weeks, which mortgage rates generally track, says Mr. Nothaft. This comes as investors who stashed their money in Treasurys as a safe haven are beginning to sell and move into riskier holdings now that theU.S.stock market and European economy are looking a bit healthier.

Rates could go even higher if the Federal Reserve’s so-called Operation Twist, which temporarily pushed down long-term interest rates, ends in June as planned, or if inflation rises, eroding the value of bonds, Mr. Nothaft says.

Good News, Bad News

“It’s a good-news, bad-news situation. The economy seems to be finally getting its legs back under it, and as a natural course interest rates are going to be back up, too,” says Keith Gumbinger, vice president at mortgage-data provider HSH Associates. But if the fledgling economic recovery falters, rates could hold steady or go back down, he says.

If you wait until the end of the year to refinance, and the average 30-year rate goes up to 4.7%—as Freddie Mac projects—you will be paying $1,877 more per year on a $400,000 mortgage than if you refinanced at last week’s average rate.

An adjustable-rate mortgage might be a good choice if you plan to move soon, since it allows you to lock in an even-lower rate for a fixed period, typically five years, and presumably sell your home before it goes up.

When you refinance, you start a new term. So if you have 25 years left on your 30-year mortgage and you opt to refinance with a 15-year loan, you will pay off your mortgage more quickly, though the monthly payments might be higher. If you refinance into a 30-year loan, it will take you longer to pay off your mortgage, though your monthly payment will be lower.

Refinance deals vary depending on your financial situation and location, but borrowers with excellent credit scores typically qualify for rates below the national average.

This past week, Great Western Financial Services of Plano, Texas, was offering a 3.875% rate on a 30-year fixed-rate mortgage to Chicago-area borrowers with a credit score of 771 or higher. PNC Mortgage was offering homeowners in Tampa, Fla., a 4.125% rate on a 30-year fixed-rate loan. And in Boston, Bank of America BAC +0.51% was offering homeowners a 3.5% rate on a 15-year fixed-rate mortgage.

Borrowers looking to refinance jumbo loans—those too large to be backed by Fannie Mae or Freddie Mac—should expect rates 0.3 to 0.4 percentage points above ordinary loans, since most lenders keep these loans on their books and consider them riskier, says Mike Fratantoni, vice president for research and economics at the Mortgage Bankers Association. Jumbo rates vary more by region than so-called conforming loans do: The best 30-year rate available to a homeowner with excellent credit and a loan-to-value ratio near 70% was 4.3% inDallas, but 5% inTucson,Ariz., according to LendingTree.

Not all homeowners should consider a refinance, of course. If you aren’t planning to stay in your home for long, refinancing into a 15- or 30-year loan—or even an adjustable-rate mortgage—could cost you more in the end, since you might not recoup the one-time costs that come with refinancing, says Doug Lebda, chief executive of LendingTree.

Such costs typically include an appraisal, credit check and processing fees from the lender, altogether typically 2% to 4% of the loan amount, LendingTree says. That is on top of any so-called points, or origination fees.

Pulling the Trigger

Expect your refinance to take 60 days or longer to close, compared with 30 days before the housing crisis, Mr. Gumbinger says. If borrowers rush to refinance, lenders could experience a logjam that could slow down processing times even more. But it isn’t likely that a further slowdown would jeopardize a borrower’s ability to lock in a rate, he says.

John Ruben, a 54-year-old chief operating officer at a hotel workers’ union, checked mortgages rates online multiple times a day for months before pulling the trigger and refinancing his $321,000 home inBethlehem Township,N.J., earlier this year.

He had calculated that refinancing would be worth it only if he cut a percentage point off his current 5% interest rate on a 30-year fixed-rate loan. When rates dipped, he refinanced at a 4% rate through a mortgage banker—saving about $150 a month on his payment.

Says Mr. Ruben: “I’m glad I locked in when I did, because now they’re going up again.”

 

Housingwire.com reports that Bank of America is ready to start a pilot program for select homeowners who are facing foreclosure.

The program basically has the bank take over ownership of the home, and rent it back to the owner turned tenant at market or below market rate rent.  The owner would be allowed to rent the home for up to 3 years.

This is a pilot program and designed to test the effectiveness of this “rent back” theory.  If successful, we will likely see it appearing in more markets.  Only 1,000 people will intially be allowed to participate.

To read the entire artcile, visit:  http://www.housingwire.com/article/bofa-offers-distressed-homeowners-chance-stay-homes?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+housingwire%2FuOVI+%28HousingWire%29&utm_content=Google+Reader

 

For more information on this program

Just Rented!

14 Woodbury Ave. # 2 just rented for $1,550 / month.

This 2 BR apartment is huge, at over 1,300 SF, and features hardwood floors throughout.  It also offers an updated kitchen with dishwasher, 2 BR’s, and sun room, and private washer /dryer.

For more information about this particular property, visit:  http://cmls.paragonrels.com/publink/default.aspx?GUID=50a44df6-3df1-4e94-b04c-bd44602f3bf7&Report=Yes

For questions on this property or any other property in Norwalk, CT visit www.ToddTurcotte.com and send Todd and email!

New Listing!

10 Wall St. # 209 was just listed for $1,100 / month.

This studio apartment features soaring ceilings, exposed brick, and wood beams.  It also comes with the creature comforts renters are looking for with an in-unit washer / dryer and dishwasher.  This apartment is located in an historic building that features coded entry and a 5-star restaurant!

For more information about this specific property, visit:  http://cmls.paragonrels.com/publink/default.aspx?GUID=12cac41c-9af5-4819-8065-c221f058109d&Report=Yes

For information on every property for rent or for sale in Norwalk, visit www.ToddTurcotte.com

 

Just Reduced!

16 Oakwood Ave # 2 was just reduced to $1,695 per month.  This 2 BR, 1.5 bath townhouse is conveniently located near the Merritt 7 buildings, and close to the Route 7 connector.  The apartment also has a spiral staircase that leads to a loft!

For more information about this particular rental, visit:  http://cmls.paragonrels.com/publink/default.aspx?GUID=b64e91ec-f11a-41af-a040-0d1d26060d9a&Report=Yes

For information on every proper

 

Local rental rates have been on the rise lately.  While that is great news for landlords, it isn’t so great for their tenants.

In lower Fairfield County, the rental rates have risen about 3% in the past year, and are expected to continue.  All signs point to rental demand increasing while the rest of the housing market stays stagnant for the most part.  Consider some of the larger developments in Norwalk like Waypointe and 95/7 District.  These developments have revised plans to increase more residential rental units and decrease the amount of commercial and retail space they plan on building.  They wouldn’t shift resources and space towards residential rentals if they didn’t expect the demand to increase (and ultimately their cash flow).

With rental prices increasing, buying a home or condo starts to make more sense.  By most accounts the price of housing has just about hit bottom and the monthly payment on a condo or house is less than it would cost to rent a comparable property in many cases.  If this trend continues (and rents keep rising) it should help the purchase side of the housing market.

For more info about buy vs. rent affordability, see this article from HousingWire.com:  http://www.housingwire.com/article/trulia?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+housingwire%2FuOVI+%28HousingWire%29&utm_content=Google+Reader

For information on local real estate, and to ask Todd any questions, visit www.ToddTurcotte.com

 

Trulia.com just published an artcile about foreclosure myths for 2012.  Most of the public have heard about at least one of these points, if not all 5.

Whether you are in the real estate market (buying or selling a home) or not, it is good to have a basic idea of what is going on in the nation and local real estate markets.  These real estate trends might not affect you today, but what if you need to move out of town for a job in 1, 2 or 3 years?  Knowing what is happening today, and what will likely happen in the future will help you know what tmore accurately

New Listing!  38 Chapel St. # B was just listed for $1,100 per month.

This 1 BR apartment is located on the 2nd floor of the building, and offers off-street parking, a large living room, gas heat, central air, and washer / dryer inside the apartment!

For more info about thi

New Listing!  5 Elmcrest Terrace # 2 was just listed for $1,795 / month.

This 2 BR condo features a granite and stainless steel kitchen, an updated bath, good closet space, hardwood floors, dishwasher, washer / dryer in unit, and more!

For more information about this specific Norwalk condo rental, visit:

http://cmls.paragonrels.com/publink/default.aspx?GUID=9d6ba271-2a18-42f6-9e58-d556429fc613&Report=Yes

For information or questions on any property in Norwalk, visit www.ToddTurcotte.com and send Todd an email!