D.C. Region Poised for Nation's Biggest Housing Gains

Homeowners in the Washington area can uncross their fingers -- 2011 is expected to be the best year for home prices the region has witnessed since the recession, with experts saying the area's market recovery will be tops in the nation.

                       

The region's relatively strong uptick in prices over the last year -- second in the nation -- gives analysts reason to believe the Washington market could see a 6.5 percent increase in home prices over the next 12 months, according to a new report by Clear Capital, which tracks real estate trends. It's the biggest increase the firm is predicting across the country.

"D.C. prices are already going up for all homeowners who have purchased a home in last two years," said Alex Villacorta, senior statistician at Clear Capital. "So they are likely to see positive equity in that purchase."

Preparing Your House for the Market

If you're selling your home, make sure your home has "curb appeal." Remember, you can't change a first impression. If your home looks like a diamond in the rough, think about putting a small investment into cleaning up the outward appearance.

Imagine that you are seeing the property as a potential buyer. You'll want to do a little yard work - clear away dead shrubbery, and trim your trees and lawn. Weed the flower beds or plant some flowers that will bloom in season. Make sure the driveway is not stained, and if you can't afford to paint the home entirely, at least make sure the front door and immediate entryway is immaculate.

Fresh and clean are still the keywords to making a good first impression once the potential buyer walks through the door. Unless a particular window is facing an eyesore or a neighboring building, open the drapes and let the sunshine in! Put your dog in the back yard or garage so he's not jumping on the new people who just walked in.... they might have allergies! There is much you can do to improve the look of your home, without investing a great deal of money.

Call me to get a copy of my pamphlet, "33 Ways to Sell Your Home Fast." I'd be happy to share more tips with you and assist you in obtaining financing for your next home as well.

Why Pay Private Mortgage Insurance?

Private Mortgage Insurance (PMI) is required by most lenders when a borrower puts less than 20% down on a purchase loan. Paid for by the borrower, PMI not only protects the lender from foreclosure, it also enables many buyers to qualify for loans and purchase real estate when they couldn't have otherwise. On January 1st, 2007, legislation went into effect making PMI tax deductible for new borrowers whose personal adjusted gross income is $100,000 or less. This has created additional opportunities for many buyers to finance a more expensive home or, in some cases, to obtain a lower monthly payment, while reducing annual income taxes.

An alternative financing option that borrowers may also consider involves taking out two home loans concurrently. The second loan, commonly referred to as a "piggyback loan", can take the form of a traditional home loan or a Home Equity Line of Credit (HELOC). It supplements the borrower's funds to help them achieve a 20% down payment, eliminating the need for PMI. However, in most cases PMI can be cancelled once the accumulated equity has reached 20% of the home's value, while a second home loan will have to be paid back in full regardless. Factor in the new PMI tax benefit, and a borrower's monthly payment may actually be lower with PMI versus a piggyback loan scenario.

It's that time of year again...



Hitting the slopes!



Around this time each year I try to line things up so I will have some breathing room around the holidays to free up extra time to spend with family and friends and every year my plan fails!! No matter how sure you are these last few loans of the year will be seamless there is always a hiccup.



As frustrating as it can sometimes be; I enjoy the challenges and enjoy knowing that I am helping people to buy their 1st home or save money in a tough economy when every penny counts. These are the reasons I love what I do and I would love to help you buy your next home or save you money with a lower interest rate. In case there is confusion Embrace Home Loans is not a brokerage, we are a direct lender  offering extremely competitive rates and superior service, if I do say so myself!



THANK YOU to all my loyal customers and referral partners, I couldn't do it without you!

I am looking forward to the holidays as I recognize how fortunate I am to have a happy healthy family, good friends, caring colleagues and a fantastic, first-rate company to work for!

Happy Holidays!!!



Social Media, Gen Y, Already Leading Online Banking Interactions

Most people tend to agree that the future of financial service exchanges is in a virtual marketplace. What has never been very clear so far is how fast it will happen and who will turn out to be the primary drivers of that switch: the banks or the customers they serve.

A survey conducted by Fiserv Inc. showed 11% of online consumers are currently connected with their bank or credit union through a social site while up to 36% of those not yet connected through those sites expressed interest in doing just that.

The Brookfield, Wis.-based technology provider found that connected consumers use social media primarily “to receive information about financial services” and to engage in relational activities.

Gen Y is the demographic most interested in the convenience of online banking and social media-based interactions, which also means the number of online banking customers is on track for a fast geometric progression type of growth.

Fiserv reports that that 45% of Gen Y consumers expressed the highest interest in communicating with their bank through social media. (Conducted in August 2010 the survey obtained responses from 3,000 consumers representative of the U.S. online population.)

Clearly, Fiserv executives said, “a sizable segment of consumers” are interested in these types of interactions.

Fiserv findings add to other research data showing that as Generation Y--those born from 1982 to 2000—enter the financial marketplace, including the housing market, they will generate demand that is expected to surpass that of previous generations.

For example, according to online marketing expert Kelly Mooney who estimates Gen Y at about 82 million people, 13- to 21-year-olds within this group already influence 81% of their families' apparel purchases and 52% of car choices.

Mooney sees Gen Y as one of the most influential generations for retailers and bankers because it is larger in size and spending power capability even when compared to the baby boomer generation.

Interest for expanded online banking interactions means lenders and servicers need to actively empower their online social media presence and use it to maintain and grow their customer relationships, says Fiserv’s vice president of online banking and consumer insights, Geoff Knapp, because “customers are visiting branches less” and going online more.

More specifically, according to Fiserv, up to 66% of current users of financial institutions’ social media sites engage in receiving information about financial services, 32% use it to retrieve information about offers or promotions and 30% to conduct customer service related activities.

Another 31% of online customers use social media to review other consumers' feedback.

The Fiserv survey reveals that existing customers tend to be more curious and/or inclined to get connected to social media sites of the financial institutions they receive their services—indicating that marketing campaigns of banks and credit unions “should focus on retention and loyalty” first before they target new customers.

Such retention efforts may cater to both consumers who are connected to their financial institution via social media and bill payments, and those who are interested in social media interactions, since they already are “deeply engaged.”

Fiserv found these bank or credit union consumers already use an average of 5.4 services as compared to an average of 4.3 for consumers who have little or no interest in connecting.

Consumers who are not yet connected through social media indicated they would be “more likely to connect to their bank or credit union” through community-building activities such as the ability to read reviews from other customers. Furthermore, about 31% of these customers describe as a barrier to connecting “a lack of awareness,” indicating banks need to improve their marketing and customer outreach efforts to improve the service quality for their online customers.

Lack of awareness was not the only stumbling factor among Gen Y consumers, 45% of which indicated they did not know they could. Fiserv also found that “a preference for using the financial institution's website and privacy and security concerns” was another barrier to connecting.

By Amilda Dymi at http://www.mortgageservicingnews.com/