The Impact of Interest Rates on REITs

Jun 26, 2013
With the rise of interest rates due to the decelerating federal stimulus program, real estate investment trusts (REITs) have taken a pretty big hit, according to recent reports. REITs were a boon in the world of rock bottom interest rates, but their popularity has since declined considerably. With REITs, 90 percent of profits are paid as dividends to investors. When interest rates are low, REITs are an easy bet. But as soon as rates start climbing, REITs drop out of favor, owing to their sensitivity to interest rate changes.

Fluctuating Interest Rates Drive down REITs Index

At a recent industry conference in Chicago, real estate investors and analysts discussed the impact of fluctuating interest rates on REITs. Reporter Diana Olick from CNBC’s Realty Check column found that REITs were down by 8 percent as investors rushed out of the market into stocks. “REITs are highly sensitive to the interest rate environment, they’re effectively bond substitutes on the equity side. They are enormous users of capital,” said David Toti, an REIT analyst. “A change in rates impacts their cost of capital, and it impacts their ability to acquire aggressively.”

As high-yield investments, REITs become less attractive when rates rise, says Toti. But it’s important to note that investors and analysts are on a continual high alert for any sign that interest rates and yields will return to historically average numbers. So when there is a drop in the REIT index, industry analysts are quick to point towards rising interest rates. Of course, interest rates have risen slightly since May, hovering just over 4 percent.

There appears to be some new evidence that when interest rates are driven up, REITs take a hit. During the second quarter, REITs stocks suffered, with the iShares FTSE NAREIT Mortgage REITs Index down more than 11 percent from the index reading three months ago. One expert, however, cautioned against jumping the gun. Marty Cicco, managing director of Evercore Partners told REIT.com that investors may be jumping the gun. On the question of whether or not the Federal Reserve’s fiscal policy and rising rates have influenced REIT performance, Cicco said, “I would suggest that the last two weeks have been a knee-jerk reaction, not just within the REIT sector, but the markets broadly.”

Positive Outlook for Multi-family, Student Housing, Healthcare REITs

In other words, there can still be a positive outlook for REITs, particularly in the healthcare sector. Top-tier companies who made a lot of gains during the recession still have much to gain from REITs. Other sectors that could benefit from rising rates include multifamily and student housing development. Over the past years, multifamily REITs have been eclipsed by more successful office or industrial REITs.

For today’s rising interest rates, REITs with the most cushion would include properties that typically have short-term leasing situations - such as multi-family, student housing, or healthcare.

4th of July Fun in La Quinta and La Quinta Resort & PGA West

There will be four days of 4th of July fun at the Resort and PGA West starting July 4th and running all weekend until Sunday.

 The Great American Block Party Barbecue at La Quinta Resort & Club

July 4th - 5:30 pm to 8:30 pm (open to the public) at the Fiesta Ballroom. Fireworks a little past 9:00 pm.

July 4th - 7:00 pm to 10:00 pm Fireworks Viewing Party and Mountain Dunes Burger dining at Mountain and Dunes Golf Course.

Further July 4 weekend festivities La Quinta Resort & Club will include dive-in movies, kids’ camp, pottery and canvas painting by the pool, candy Bingo, tennis clinics, stargazing, and swim lessons. 

La Quinta Chili Cook Off

July 4th - 4:30 pm at the La Quinta Park off Avenida Montezuma. Parade starts at 7:00 pm Free swimming 12:00 noon to 4:30 pm at Fritz Burns Park Pool. Fireworks at 9:00 pm at the La Quinta Park

Click here for more details!!

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How to Know If a Reverse Mortgage Is Right for You

Desert Luxury Realty

If you’re of a particular age and short on cash, a reverse mortgage can be a godsend. But how do you know if it’s right for you? Before you start to tear your hair out, here are a few items to consider.

 What is a Reverse Mortgage? 

Reverse mortgages, officially called the Home Equity Conversion Mortgage (HECM), are government-sponsored products that help seniors earn a little cash off home equity. To be eligible, you must be over the age of 62.

Seniors most often take out a reverse mortgage to supplement social security income, make home repairs, meet unforeseen medical expenses, or for other “rainy day” events. Typically, taking out a reverse mortgage is only worthwhile if you plan on staying at home for a long time. The biggest advantage a reverse mortgage offers is the ability for seniors to remain at home for as long as possible, without the need of imposing on family members or moving to an assisted living facility.

The full requirements to apply for a reverse loan include:

• Be 62 years or older
• Own the home or have a low mortgage balance
• Live at home
• The home must be a single-family or 2-4-unit home

When a Reverse Mortgage Is Not a Good Idea

With a reverse mortgage, you receive cash every month out of your home’s equity. When a home is sold or no longer the primary residence, all the money received, interest, and loan fees associated with the reverse mortgage must be paid off. For these reasons, it’s a bad idea to get a reverse mortgage if you’re going to sell the home or move away at some point. It’s also not a good idea to take out a reverse mortgage if you have any heirs, because the debt transfers to them through your estate.

The reverse mortgage works to meet your immediate financial goals and gives you an extra boost. It should supplement your main source of income. You should not consider a reverse mortgage if you currently struggle to pay property taxes or homeowners insurance.

Modify Your Home to Fit Changing Needs

Because of medical advances and emerging services for the elderly, it is often quite conceivable that you can stay in your home as long as you want. You should be committed to staying in your home for at least five years to recoup the costs of the loan, but to get full value from your mortgage you should stay in your home for the remainder of your life.

With a reverse mortgage, there are a couple of options for your cash out. You could get an immediate lump sum, a line of credit, monthly annuity payments, or a combination of all three. With this extra money, you could finance extra help at home, either for homemaking services or daytime home healthcare. Usually, to get the loan, you must have some specific purpose for which you’ll be using the money. You could use it to renovate the bathroom, or add an extra railing for safety. Any type of home repair or renovation is a great use for a reverse mortgage.

California May home sales and price report

Press release - June 17, 2013
Bolstered by strong sales in higher-priced regions, California  median home price records largest year-to-year gain since 1980, C.A.R. reports

LOS ANGELES (June 17) – Strong sales growth in higher-priced markets and continued housing supply shortage pushed up California’s median home price in May, resulting in the largest year-over-year price gain in at least the last 33 years, the CALIFORNIA ASSOCIATION OF REALTORS ® (C.A.R.) reported.

“It’s encouraging to see median home prices across most parts of the state continuing to recover.  The Bay Area, in particular, has been experiencing strong price appreciation, thanks to the region’s robust economic growth, extremely low housing inventory, and an increasing demand from international buyers,” said C.A.R. President Don Faught.  “San Francisco County’s median home price, for example, increased 28 percent from last May and has just surpassed its previous record high reached in May 2007.”

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 431,370 units in May, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.  Sales in May were up 1.9 percent from a revised 423,420 in April but down 3.6 percent from a revised 447,530 in May 2012.  The statewide sales figure represents what would be the total number of homes sold during 2013 if sales maintained the May pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

The statewide median price of an existing, single-family detached home rose 3.6 percent from April’s median price of $402,760 to $417,350 in May.  May’s price was up 31.9 percent from a revised $316,460 recorded in May 2012, marking 15 straight months of annual price increases and the eleventh consecutive month of double-digit annual gains.  The year-over-year price increase was the highest since at least 1980, when C.A.R. began tracking this statistic.  The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.

“While home prices are increasing at levels above those observed in 2006-2007, the fundamentals of the housing market are much more solid than what we experienced a few years ago,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “More home buyers are putting down larger down payments, and many of them are opting for more stable loan products.  Additionally, historically low mortgage rates have reduced monthly mortgage payments substantially, making owning a house more affordable, even with rising home prices.”

Other key facts of C.A.R.’s May 2013 resale housing report include:

• The available supply of homes for sale dipped in May, and was down markedly from a year ago.  The May Unsold Inventory Index for existing, single-family detached homes was 2.6 months, down from 2.8 months in April, and down from a revised 3.6 months in May 2012.  The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate.  A six- to seven-month supply is considered normal.
• Homes sold slightly more quickly in May, with the median number of days it took to sell a single-family home decreasing to 27.1 days in May, down from 27.9 days in April and down from a revised 45.7 days for the same period a year ago.
• Mortgage rates ticked up in May, with the 30-year fixed-mortgage interest rate averaging 3.54 percent, up from 3.45 percent in April 2013 but was down from 3.80 percent in May 2012, according to Freddie Mac.  Adjustable-mortgage interest rates in May averaged 2.55 percent, down from 2.63 in April and down from 2.74 percent in May 2012.

June's Newsletter

June's Newsletter is Out!!

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Foreclosure Rates Continue To Fall

Desert Luxury Realty

The financial crisis seems almost a ghost of history now that home prices and sales are rising. Foreclosure rates, another key indicator of the Great Recession, have also plummeted in the past year, down by 25 percent, according to a new study released by Lender Processing Services (LPS).

The new data from LPS mirrors what others have been saying about foreclosures. The National Association of Realtors recently reported that the number of distressed sales is down by 3 percent from last month. Lower rates of foreclosure and short sales can be attributed to the overall improving housing market, including record low mortgage rates and new government-sponsored refinancing programs. The Making Home Affordable initiative helps underwater homeowners refinance mortgages at lower interest rates to avoid foreclosure.

The LPS report also found that the number of homeowners in delinquency - loans that are 30 days or more past due - has fallen drastically since July 2008. At a rate of 6.5 percent, more than 9 percent less than year-prior levels, delinquency is down across the U.S. The five states with the lowest rate of overdue loans are Montana, Wyoming, Alaska, South Dakota, and North Dakota, according to the LPS. However, there are still more than 3 million properties underwater. The states hardest hit in the crisis - New York, Nevada, and Florida - still have the highest rates of delinquency.

Foreclosures strongly impacted the duration of the housing crisis, forcing many homeowners to move in with parents or rent. Gains in home prices before last year were limited due to the amount of shadow inventory in the market. Jann Swanson of Mortgage News Daily reports that shadow inventory of foreclosures is up from last year as a result of the National Mortgage Settlement. “U.S. foreclosure inventory has increased by about 12 percent since May 2012 when it hit a five-year low of 1.3 million properties,” writes Swanson. “Today, that inventory stands at about 1.5 million and is up 9 percent from the first quarter of 2012.”

While foreclosure inventory is up, the rate of new foreclosures is in decline. In fact, inventory is down from its 2010 peak by nearly 1 million. Daren Blomquist, vice president of RealtyTrac explains how the National Mortgage Settlement relieves pressure from foreclosures. “The settlement provided some closure regarding accepted foreclosure processing practices, and as a result lenders have been reviving more of these delinquent loans and pushing them into foreclosure over the past 12 months, particularly in states where a lengthy court process has resulted in a bigger backlog of non-performing loans still in snooze mode,” Blomquist said.

Distressed sales of foreclosed homes or short sales bring down the market value of property. However, as the rate of foreclosures continues to decline, housing prices will soon reflect market value.

Can't find the color you're looking for? There's an App for that!!

I recently posted on Mary Williams Interior Redesign “How to Pick Your Paint Colors”….

Well, there’s an app for that –

Behr Paint has introduced ColorSmart by Behr™ Mobile which is available for iPhone, iPad, and Android. The mobile site mirrors the online site to find just the right color for your room. You will be able to photo-match to any Behr color, preview colors, save colors and room images and paint a room – now all on your phone! FUN!! Benjamin Moore has Color Capture for iPhone & Android. See a color? Snap it and Benjamin Moore will find that color in their color charts. Save them to favorites and show to your paint dealer when you’re ready to have that room painted!! Sherwin Williams has ColorSnap for the iPhone. This app will also match any color in a photo you took on your iPhone. You can even email your newly found color matches to your favorite room redesigner!! Valspar also has an app which will help you choose the color and how much paint you’d need. However, you’re painters certainly will figure that out for you.

If you are thinking about a remodel, redesign, or reorganizing; then I am your redesign professional!

If you are considering selling your property, and you think it needs staging; I am your neighborhood professional!

Call me at 760.567.7282!

Are Pocket listings in your best interest in the Desert?

June 4, 2013 By Mary Williams 

Last month I wrote about pocket listings in La Quinta and surrounding communities. Since then, there has been quite a bit of conversations since it is quite controversial.

Robert Bailey, 2013 chair of MLSlistings Inc. in California recently attending the REALTORS® Midyear Legislative Meetings & Trade Expo, said, “Clearly they’re not ‘off the market,’ nor are they in your pocket. They’re not on the MLS.”

According to the Bailey’s report, pocket listings increase 12% in 2011 to 15% in 2012 and up to 26% in the first quarter of 2013! Almost one fourth of all the listings in California are not shown on the MLS.
However, as I posted earlier, there are pros and cons about keeping your home off the MLS. You need to know all your options BEFORE your home is listed and I can give you that information.

Call 760-567-7282 and let’s discuss what your options are and what I can do for you.

Where to you start with a Redesign Project?

Mary Williams Interior Redeisgn

It’s so exciting! You are going to update, refresh or redesign your home. But wait! Before you hand over a hammer or money to just anyone there are a few things you need to get in order.

Know EXACTLY what you want.

That sounds pretty elementary, but if you don’t know exactly what you want, you may end up with something the contractor likes or wants only to find out that is exactly what you DIDN’T want.

Don’t run with the lowest bid.

If you are looking at remodeling or redesigning from just the $$$$, you may end up with exactly what you are paying for. I know it can get expensive, but spending the money on quality work as well as materials will save you huge headaches in the long run. Best thing to do is to gather three bids from reputable contractors and then ask the questions to determine who is the best fit for you and your redesign project.

Get it in writing!

S*P*E*L*L out your project in extreme detail and include time limits. Also, include verbiage which includes what happens if there is a defect in the material or workmanship. Be sure to include a payment schedule to what is paid at what point. Don’t pay all upfront – delegate a certain amount of money to be paid at different stages of the redesign, leaving the majority of payment after the work is completed.
Finding the right contractors or where to start can be daunting in itself, but I’m here to help!

If you are thinking about a remodel, redesign, or reorganizing;
then I am your redesign professional!

If you are considering selling your property,
and you think it needs staging; I am your neighborhood professional!

Call me at 760.567.7282!

.

Vacation homes are HOT in the Desert!

According to a recent report from REALTOR(r) Mag, the Vacation Home market is heating up. Americans are feeling better about the economy and area showing that by spending money on Vacation or 2nd homes. One of the major enticements is the low interest rates - the other is the great deals out there. However, many vacation homes are purchased with cash in the Desert. Nationally about 46% of vacation home buyers paid in cash. If buyers did finance, they generally made at least a 27% down payment.

According to the NAR(r) report, there was a 10% increase in vacations homes purchased in 2012 - and it has been going on strong ever since and especially here in the Desert.

"A lot of buyers who were sitting on the sidelines decided last year was probably a good time to take advantage of buying a vacation home," says Paul Bishop, NAR’s vice president of research. "They were feeling pretty good about their own financial situation, given the growth in the market and in the economy."
Even though it's about the end of our Season in the Desert, it won't be too long and the winter season will be upon us. Why not take advantage of the housing prices in the Desert now and have your home all lined up to come back to in the Fall?

This would be a great time to purchase and then refresh and redesign during the hot summer months. Call me today to find out how.

Mary's Newsletter is Out!

May's Newsletter is Out!!

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California's Median Home Price 28% HIGHER than Last Year!

Desert Luxury Realty

Total Single-family homes sold in California

April 2013 - 423,510 single family units sold

March 2013 – 417,880 single family units sold

April 2012 – 43,770 single family units sold

April 2013 was down 3.7% over last year, perhaps due to the low inventory.

Median Prices for homes sold in California

April 2013 - $402,760

March 2013 - $378,960

April 2012 - $312,500

April 2013 was 28.9% higher than last year AND the first time since 2008 the median home price has popped over the $400k mark. This also marks the 14^th continuous month home prices have gone up and 10^th month of double digit gains. The increase of the median home price in due to the increase of luxury homes sales. “The upsurge in the median price continues to be driven by an increase in sales in the upper- price range, where low inventory is less of an issue,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Over the past year, home sales in the $500,000-and-higher market segment posted a year-over-year gain of 35 percent on average, which contributed to an increase in the statewide median price of nearly 30 percent from the previous year.”

Inventory of Homes in California

Inventory of unsold existing homes was 2.8 month supply, which was down from March and down from 4.2 months last year. A 6 to 7 month supply of homes in California is considered normal. With fewer homes on the market, the homes are selling faster. Almost half the time as last year. April 2013 County Sales and Price Activity (Regional and condo sales data not seasonally adjusted)

April 2013	Median Sold Price of Existing Single-Family Homes					Sales
State/Region/County	Apr-13	Mar-13	Apr-12	MTM% Chg	YTY% Chg	MTM% Chg		YTY% Chg
CA SFH (SAAR)	$402,760	$378,960	$312,500	6.3%	28.9%	1.3%		-3.7%
CA Condo/Townhomes	$319,080	$306,050	$237,320	4.3%	34.5%	2.1%		2.7%
Los Angeles Metropolitan Area	$370,640	$352,510	$289,700	5.1%	27.9%	6.0%		2.2%
Inland Empire	$231,610	$227,920	$181,770	1.6%	27.4%	2.1%		-4.6%
S.F. Bay Area	$685,530	$636,150	$526,370	7.8%	30.2%	13.6%		-1.8%
Southern California
Los Angeles	$361,630	$340,890	$286,800	6.1%	26.1%	9.0%	5.7%
Orange County	$653,740	$619,430	$513,950	5.5%	27.2%	6.8%	9.7%
Riverside County	$274,420	$263,670	$213,950	4.1%	28.3%	1.3%	-4.9%
San Bernardino	$164,470	$161,900	$132,030	1.6%	24.6%	3.4%	-4.1%
San Diego	$454,390	$436,710	$369,910	4.0%	22.8%	4.5%	9.2%
Ventura	$502,940	$475,000	$427,320	5.9%	17.7%	6.5%	0.5%

  Information from a news release from California Association of Realtors®.

Purchasing your vacation home in the Desert

[social] It’s a known fact, once you leave the Desert, you dream of come back and purchasing a home in the Desert. Most times it’s your second or vacation home – a get-a-way from the cold and snow of winter. However, before you start looking at homes, there are some things you may want to keep in mind.

Do you buy your home outright? Or do you finance it? Interest rates on vacation homes tend to be higher than conventional rates, but both are historically low right now. Both 1^st and 2^nd home interest rates are tax deductible … for now.

If you finance, should you opt for a 15 or 30 year mortgage? Adjustable rate? (Don’t forget we’re just getting out of the Housing crisis – many people had ARM’s.) If there’s a lot of equity on your first home, should you take out a home equity loan on that to pay down your vacation home? All scenarios to discuss with your loan officer before you write an offer or even start your Desert vacation home search.

Second/Vacation home mortgages, along with having higher rates, have more rules than if the purchase was your principal residence. One question the lenders will ask is how will you handle an unexpected financial crisis owning two homes and all their expenses? This will probably require you to detail and explain a lot more of your information than you would for your first home. It’s still a great time to purchase in the Desert and there are great homes on the market right now!

California Lifestyle Realty Featured Homes – May 10th to 12th

Your dream home awaits … Call 760-567-7282 today! Below are the latest properties featured in this week’s ad. Call me to see any of these great homes!

 

May 2013 Interior Redesign Newsletter

Pocket Listings in the Desert

“Pocket Listings” are not new in the La Quinta and surrounding areas in the Desert. In case you’ve heard of “pocket listings” but not sure what they are, they are homes which have been listed with a real estate agent/REALTOR®, but not submitted to the Multiple Listing Service.

Pocket listings are legal and a home owner can request their home to be a pocket listing, but is it in your best interest as a seller? The decision is totally up to you and what you think is in your best interest, but there are things you may want to think about before asking to have your home put in the “pocket”.

Your home will be restricted from the “public” access of the entire local multiple listing service. Your home may be unknown to other real estate companies and agents. If a potential buyer would search for your home on the internet (over 90% home searches start on the internet), your home may not show up unless it is on your agent’s website. In other words, not all willing and able buyers will see that your home is now on the market. You may not get the best possible price for you home, if it is not publically viewed.

However, according to CNNMoney, many high-end sellers would rather have more privacy when their home is on the market. And with the tight supply of home inventory, initial listings could create a frenzy of craziness.

There may be another reason you may want to list your home as a pocket listing - Test the real estate market because you may not REALLY be ready to sell.

Though the National Association of REALTORS® do not have an official policy on pocket listings, many of the legal and ethical rules and regulations are in place to protect the public.

If you’d like more information whether to have your home as a pocket listing or regular listing, call me at 760-567-7282 and we can discuss all the scenarios that are in your best interest in selling your home.
Also, don’t forget to follow me on Facebook!

La Quinta Summer Golf Tour

Summer Golf Tour

Registration begins on Monday, May 6!

ONLY $69 per player to register and reasonable weekly green fees

Continues through August 25

The La Quinta Summer Golf Tour is back. This 13-week golf program allows participants to play at some of the finest courses in the Coachella Valley. Tour participants may pick and choose which courses they would like to play. Players may choose to play in either single or team divisions; plaques will be awarded to the top finalists in both divisions at the Golf Tour Banquet on August 24.

This very popular summer program is back for another year of fun in the sun! 

Advance, intermediate, and novice golfers are all welcome to enjoy playing on this 13-week golf tour. Every Saturday morning, participants have the opportunity to play at some of the finest courses in the Coachella Valley. Players may choose to play in either single or team divisions and will be divided into flights based upon their weekly handicap. Points are earned throughout the tour based upon net scores. On the final Saturday of play, an End of Tour Banquet is provided for all participants to enjoy.

• Shotgun starts
• Reasonable green fees
• Plaques and prizes awarded at End of Tour Banquet

Enjoy these Participating Golf Courses!

• Indian Canyons, North Course
• Terra Lago, South Course
• Escena Golf Club
• Tahquitz Creek, Resort Course
• Indian Springs Golf Club (includes lunch)
• Indian Wells Country Club, Cove Course
• Marriott Shadow Ridge
• Eagle Falls Golf Course
• SilverRock Resort
• Westin Mission Hills, Gary Player Course
• Monterey Country Club
• Classic Club at Palm Desert
• Desert Willow, Mountain View Course
• End of Tour Banquet
• Desert Willow Golf Resort

*Guests are welcome to participate for a fee of $15 per week.

Please contact The City of La Quinta for more Details and egister at www.la-quinta.org/communityservices

If it starts with one REALTOR(r), Start Out Right!

Desert Luxury Realty

There Really Is Something About Mary.

Mary is not your typical real estate broker in any small and growing community. She brings high energy, passion, non-stop enthusiasm and knowledge to each of her clients from the Permanent Home Buyer to the Sophisticated Investor.

Her 6th sense and ability to listen carefully, allows her to quickly zero in on your preferences, saving you precious time. She is focused to the needs of all her clients, no matter what their criteria may be.

She makes buying or selling property fun, enjoyable, and easy. You’ll find yourself calling her over and over again for valuable information is easy and something you can depend upon. Making her clients feel confident and happy, is job one!

Mary has been in the service industry all of her working career, with over 30 years of a highly successful track record in Sales and Marketing, primarily in finance and real estate.

So, Is There Really Something About Mary? Call Mary and experience first hand why her clients become friends, returning repeatedly for their real estate needs and confidently referring their friends.

So find out what all the talk is about. . . . Give Mary a Call. . . . . . Mary Williams, That is!

Jumbo Loans May Mean Super-Sized Requirements in the Desert

With jumbo loans making a come-back into the Desert area mortgage market, many a luxury buyers (and sellers) are rejoicing!

But before you dash out and get a loan, you may want to know; Jumbo loans are coming with jumbo buyer requirements.

Specifically – buyers across the luxury home market that are considering a jumbo loan should be aware that large cash reserves are often required for purchases over $417,000.

Some lenders require their borrowers to have a reserve of up to 12 months’ worth of mortgage payments in the bank or liquid assets for purchases from $417,000 to $2 million according to a recent article from the Wall Street Journal Online. For loans over $4 million the figure is more like 36 months’ worth of reserves.

Cash reserves aren’t the only thing super-sized. Down payments are larger on a jumbo loan too. Most lenders require at least a 20% down payment for jumbo loans with some going as high as 45%.

If you don’t quite meet some of those criteria exceptions can sometimes be made. This is especially true if you call on a lender that you’ve done a great deal of business with. Items like reserve amounts can sometimes be tweaked with the right relationship or for a buyer who is strong in other respects such as credit or down payment.

Why the big costs? Jumbo loans represent a larger investment and a larger risk to the lender. Many of these homes are customized, making them appealing to a smaller pool of specific buyers so if the loan goes belly-up the home will be more difficult than average for the lender to unload.

The bottom line: Jumbo loans may require more money in reserve and upfront, but if you’re a strong buyer the luxury market can yield a pretty amazing home!

Whether you’re looking for a luxury vacation, a second home in the Desert, or even miles away from us, I can assist you with your purchase in La Quinta and surrounding areas. Call 760-567-7282.

April 2013 Newsletter

April's Newsletter is Out!!

Follow this Link to Read More!