California Real Estate | Homes for Sale | Blog

The real deal with the California interest only loans is that the borrower is given the option by the mortgage lender to only secure the payment of the interest of the loan provided that it is settled within a certain period of time. Usually, this duration is limited. There also comes the option for the borrower to decide on how much to pay for the principal loan.
The good news with these interest only loans is all about the lower interest rate posed by the mortgage lender. Most borrowers then find this option really helpful as they only need to settle a smaller amount on a monthly basis. Again, it is upon the discretion of the borrower to arrange for the repayment of the principal loan. The interest only loans available in California can either be adjustable-rate or fixed-rate mortgages.
Another option for the California interest only loan is that which has a longer time span to repay. The advantage to this is that the additional money that is set aside for the repayment of the principal loan can therefore be invested into another venture that will settle the rest of the loans that call for a higher interest rate.
On the other hand, there is a downside to this. This can be a risky attempt too since the interest rates are affected entirely by what is currently determined by the interest rate in the market. There are times when the interest rate in the market is high while at times it can be low. Thus, there is no certainty as to the amount that needs to be designated for the loan payment. Borrowers then need to be prepared to face this risk.

If you are moving to California from another state, don’t be so sure that the foreclosure laws that applied in your present state will apply in California. As a rule, the laws may vary from one state to another. When it comes to securing California real estate, you need to get to know the laws that cover any related transactions. As a buyer you need to be certain that you are legally shielded in your purchase. California real estate buyers are endowed with several rights. So, be wise when partaking into any sort of a real estate purchase.
Now there is always the great probability that real estate can be foreclosed upon should it be used as a security against a loan if the borrower failed to settle the payment. When these properties are foreclosed, they can also be put up for sale. But before you dwell on the consideration of buying a foreclosed property, you should first thoroughly research the basics, its deficiencies, and all the other factors that surround it.
For one, the provisions of the California real estate foreclosure laws involve the sellers, the buyers, and the affiliates. The brokers are as well required to be duly licensed by none other than the Real Estate Department of California. There can be some drawbacks when it comes to getting yourself a foreclosed real estate property. Hence, be sure to do your homework with regard to buying a foreclosed property.

California has an enormous and highly diverse economy. With a gross state product close to a trillion dollars, it is one of the world’s largest economies. It accounts for about 13% of the nation’s total economic output. It ranked either second or first as a state headquarter of Fortune 500 companies in the past decade. It even beat New York in 2003 in the top list with 53 Fortune 500 companies. These companies have generated a total revenue of more than $763 billion. It is truly a centre of modernization and manufacturing expertise.

3 industries contribute in large part to California’s economy - advanced technology, manufacturing and international trade. These companies tend to pay better compensation than older industries, resulting to a higher average earning in the state.
The largest sector in the economy is the financial services sector. The second largest would be the manufacturing sector. Although the agriculture sector account for a small portion of the state’s total output, it leads the nation with its agricultural products sold for the past 10 years. California produces almost 90% of the nation’s grapes and almonds and 75% of its strawberries and lettuce. California is ahead when it comes to service exports combined with good exports. It is leading in the industry of exporting computers and electronic products. It continues to lead the nation and the world in major industries such as agriculture, information technology, biotechnology, entertainment and aerospace thriving in Northern California, Central Valley and Southern California. It has finally begun to regain its status as the nations most powerful economic machine.
California is not only a land of opportunities; it is also a place where you will find summer fun and winter adventure and a lot of both for the whole family. You can go picnicking in the wine country, golfing near Napa, snowboarding in Mammoth, rollerblading in Venice beach, Mountain biking in the Sierra, Fine dining at 21 Oceanfront in Newport Beach and a lot more. It is unique due to its size and demographic mix. With the state’s varied topography and abundance of arts and entertainment, beauty and recreation, history and culture, California is the perfect place to live!

For the fourth straight month, home sales rose in California. This would normally be great news, however the larger picture shows that sales decreased by 28.5% over last year February. In addition the median price has fallen by an astonishing 26.2%.

Here are some statistics from the California Association of Realtors:

Statewide, the 10 cities and communities with the highest median home prices in California during February 2008 were:

• Santa Barbara, $1,150,000
• Redwood City, $875,000
• Danville $875,000
• Encinitas, $842,500
• Santa Monica, $787,000
• Mountain View, $784,000
• San Clemente, $770,000
• San Mateo, $750,000
• Sunnyvale, $741,750
• San Francisco, $737,750
• Carlsbad, $675,000.

Statewide, the 10 cities and communities with the greatest median home price increases in February 2008 compared with the same period a year ago were:

• Encinitas, 25.7%
• Santa Barbara, 23.4%
• Walnut Creek, 21.5%
• Redwood City, 14%
• Carlsbad, 10.9%
• Sunnyvale, 5.3%
• Mountain View, 3.4%
• Rancho Mirage, 2.6%
• Santa Monica, 1.5%
• Los Angeles, 1.5%
• Santa Clarita, 0.9%.

Is now a good time to buy? Many would say YES! If you can qualify for a loan, there are some great deals to be had. If financing is an issue you might want to check into the CalHFA loan program, as there are less stringent requirements needed to qualify.

Take Advantage of the Market: Invest in California Real Estate Now!

With the prices going down and interest rates falling, buyers should grab this chance that doesn’t come around that often. Try switching your point of view and see the forest, instead of the trees. Take advantage of the buyer’s market. Plunge in to get the best price, interest rates and luxury of time that goes with a buyers market! By the end of 2008 beginning of 2009 it is projected that the prices will start to rise at 2-4% annually.

California real estate experts forecast that in 2009 the Real Estate Market will stabilize back to normal with prices rising at an average of 2-4% annually and interest rates playing around 7%. The foreclosure condition will stabilize and start going back to normal levels.

There are many schemes on how to take advantage of the current California Real Estate Market. You can search for under priced properties with potential to increase in value. The good thing about a declining market is that there is ample time to distinguish properties and compete with few other buyers. Have a keen eye for great buys and seize it the minute it comes on the market with a reasonable offer. This strategy is more effective than to get something that has been sitting and attempt to get it in a low ball. All real estate transactions take time. Do not be mislead into thinking that properties will appreciate instantly. The secret to this trade is: BUY LOW, SELL HIGH.

Guaranteed by time, Real Estate has shown to be a worthy investment. For instance, you buy a $500,000 house and it appreciates at a more normal return of 5%, that means it will be worth $525,000 after one year! That $25,000 is an increase and not a 50% return on your original investment. Unlike investing in the stock market, what can you do to increase the value of your asset? Pray? And when everything is done, you have to deal with paying capital gains tax on the return. Speaking of taxes, real properties provide opportunities for unbelievable tax savings. How? Uncle Sam is promoting home ownership, he will be rewarding you with tax write offs (the ability to depreciate) your home and write off mortgage interest! It is highly recommended that you always keep in touch with a CPA in order to be updated with the local tax laws amazing benefits as they apply to your individual situation.

If you invest in the stock market, mutual funds and the like, you usually invest the same value as that investment is worth on that day. With real properties you have the direct control to increase its value by simply updating the kitchen, enhancing the curb appeal of the house with lawn and grass, a new paint job and other multiple upgrades. You have the muscle to increase the value of your real estate. These are just a few in the long list of wonderful benefits if you invest in California real estate now.

After a year of dismal news in the residential sector we are seeing that mortgage rates in the commercial sector are still holding steady, according to a report released today by the California Mortgage bankers Association.

Delinquencies have risen slightly over the year, however they are no where near as drastic as seen in the residential market. This is mainly because the amount of a commercial loan is generally two times the amount of a residential loan and the down payment required is quite a bit more.

Vacancies have also held steady over the past year. As long as the units are being leased, mortgage holders should be able to pay their monthly payment.

While this news is good for California’s commercial market, it is expected that eventually the downturn in the residential market will seep into the commercial market, however the impact will likely be no where near the monumental downturn that has recently taken place in the residential sector.

California residents will have reason to rejoice this tax season!

The economic stimulus package announced this week includes rebates between $600 to $1,200 for most Californian families plus $300 per child. The big news that is relevant to the California real estate market is the fact that the plan also includes a drastic reduction in rates for loans between $417,000 and $729,00.

Jumbo loans (Loans over $417,000 in California) are generally priced at a much higher interest rate than loans for homes at a lower price point. The interest rate on a jumbo loan can be 1.5%+ more than a loan for a lesser amount. This mean that many homes in California markets are just plain unaffordable for consumers looking to buy - even in the current market.

The stimulus plan effectively raises the cap for conforming loans (loans that up until now were capped at $417,000) and the corresponding interest rate associated with them. This will give California markets a much needed boost in affordability as more consumers become qualified to purchase.

Hopefully this will be enough to begin to remove consumers from the sidelines and into the buyers category.