Rancho Santa Margarita Blog

LOST IN TRANSPARENCY 

Big changes are coming to the mortgage industry as of January 1^st, 2010; most at the cost of the borrower.  

Attempting to add “transparency” and increased disclosure to the borrower in a mortgage transaction, HUD has officially implemented the new 2010 Good Faith Estimate. Please hold the applause. And what goodies will the borrower get with the new 2010 Good Faith Estimate: 

1. A new and improved 3 page Good Faith Estimate adding two more documents to read. The old 1 page document that clearly listed fees, rate, payment, and cash to close was just too confusing for those that didn’t complete grade school.
2. Have your pencils ready. The new Good Faith Estimate has a scratch pad were you can compare rates and fees from different lenders; or just doodle. Simply putting different Good Faith Estimates from different lenders side by side was too complicated.
3. Your monthly mortgage payment is in bold print. The payment will include principle, interest, and any mortgage insurance. However, the payment will no longer disclose property taxes, homeowners insurance, or HOA dues. TOO much information. The disclosed monthly payments in bold will now leave the borrowers feeling warm and fuzzy because it appears so low. Surprise; it is.
4. And finally, HUD didn’t want to burden the borrower with knowing how much money they would need at closing. Keep your pencils out; you will have to do the math yourselves.  

The new HUD approved 2010 Good Faith Estimate will be disclosed by a mortgage company near you starting January 1^st, 2010. Also, changes in yield spread premiums are likely to be implemented come January 1^st, 2010 which will ultimately lead to higher fees to the borrower.

The federal tax credit for home buyers has now been signed into law! President Obama signed the extension and expansion of the home buyer tax credit into law last Friday, November 6th. This extends the tax credit that would have expired on November 30th and further expanded it!

The tax credit is now extended, pushing the December 1st deadline through till May 1, 2010. This is an $8,000 tax credit that is available now for first-time purchasers through April 30th, 2010.

Second, added to this bill is a new $6,500 tax credit for repeat buyers who purchase between December 1, 2009, and May 1, 2010. For those buyers who have used their home being sold as a principle residence consecutively for 5 of the 8 years, they will be able to receive the new $6,500 tax credit. 

Both tax credits are given an extra 60 days to close if they are in binding contracts as of April 30, 2010. Also, the income limits have been expanded to $125,000 on a single return and $225,000 on a joint return. Taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns, still maintaining that buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, with exemption for military personnel who move because of military orders.

Again, this is an incredible time for home buyers to take advantage of purchasing their first or new home in Rancho Santa Margarita. For information on buying or selling your Rancho Santa Margarita Home please feel free to call me at (949) 858-1770 or email me at margo@margomurray.com.

Your neighborhood realtor since 1988,

Margo Murray

Fun story telling time for children ages 5 and up. Great time to relax and listen to stories with giant teddy bears this Thursday at 7 p.m. in the children’s section of the RSM Library. All children are welcome to wear their pajamas and join us for a fun night of story telling. For more information feel free to call (949) 459-6094 or come by the Library at 30902 La Promesa. For information on buying or selling your RSM home please feel free to call me at (949) 858-1770 or email me at margo@margomurray.com.

Your neighborhood realtor since 1988,

Margo Murray

Senate has unanimously passed the extension of the $8,000 home buyer tax credit and the House of Representatives have approved it. The bill now awaits the President’s signature.

The bill does two things, first the extension will push the December 1st deadline through till May 1, 2010. This is an $8,000 tax credit that is available now for first-time purchasers before May 1, 2010. Added to this bill is stipulation that prospective purchasers with binding contracts in place as of April 30, 2010, will be permitted an additional 60 days to complete the transaction. This gives time for those in the process of escrow to properly close.

Second, added to this bill is a new $6,500 tax credit for repeat buyers who purchase between December 1, 2009, and May 1, 2010. For those buyers who have used their home being sold as a principle residence consecutively for 5 of the 8 years, they will be able to receive the new $6,500 tax credit.

Both tax credits are given an extra 60 days to close if they are in binding contracts as of April 30, 2010. Also, the income limits have been expanded to $125,000 on a single return and $225,000 on a joint return. This is an incredible time for home buyers to take advantage of purchasing their first or new home in Rancho Santa Margarita.

For information on buying or selling your Rancho Santa Margarita Home please feel free to call me at (949) 858-1770 or email me at margo@margomurray.com.

Your neighborhood realtor since 1988,

Margo Murray

This Thursday at 7 p.m. the amazing Dana will mystify and bring wonder as she plays her tricks of magic. Things will disappear, appear, water pour from an empty bowl and things afloat in the air… all this and more tomorrow night, November 5th, at the Rancho Santa Margarita Library. These family nights are fun for the whole family, every first Thursday of the month.

For more information feel free to contact the RSM Library at (949) 459-6094 or stop by the Library at 30902 La Promesa in RSM. For help in buying or selling your RSM home please feel free to call me at (949) 858-1770 or send me an email at margo@margomurray.com.

Your neighborhood realtor since 1988,

Margo Murray

To celebrate it’s Grand Re-Opening the Rancho Santa Margarita Ruby’s will be serving free a la Carte Cinnamon Roll French Toast or a free RubyBurger with French Fries from 7 a.m. to 9 p.m. TODAY Sunday, November 1st.

For more than 26 years, Ruby’s Diner has been offering a glimpse back to the 1940s with the bright red vinyl booths, white Formica tables, soda fountains and colorful Coca-Cola posters that echos the swing era. This Sunday next offers a chance for the community to become re-aquatinted with the classic Ruby’s Diner that is now company owned and operated.

For more information on the Grand Opening feel free to call Kim Myers at (949) 644-7829 or email at kmyers@Rubys.com. For information or help in selling or buying a home feel free to call (949) 858-1770 or email me at margo@margomurray.com

Your neighborhood realtor since 1988,

Margo Murray