Model Homes in Moorpark almost done..

What's kind of funny is that the sign that was up a month ago said "Homes from low 400's". Just a week ago that sign was replaced by "Homes from high 500's". They are tiny duplexes, roughly 1300-1700 square feet. I'm unsure if it's the right time to buy.

ARMs not so hot, refinance now a viable option.

Well this subject has become of interest to me because I was researching the different options that homebuyers have for loans. You're probably thinking, then why is he talking about refinance. From the previous article I mentioned that my uncle has a 5/1 ARM and he has a family with 2 kids and doesn't seem to be moving anywhere any time soon. He is a perfect candidate for refinancing, but I guess he's getting to comfortable with a lower monthly payment, well atleast for now until those 5 years are up. I came across this article discussing refinancing if you plan on staying in that home for a while. Yes I know when you refinance you basically start over with the term, but thats why you do the math yourself and calculate if you want to shorten the term to say 15 years or stay with the 30 years. That article I referenced above stated that the interest rate is up to 5.91%, so what do you do when the interest rate is say up at 7%. Should have refinanced, right?

The yuan and California refinance.

If you've been following the news you've probably heard that China revaluated their currency, the yuan. There has been much speculation about the direct effects of this move, such as rising interest rates here in America. How does this effect the California housing market?

I personally think people here in California will start refinancing if they haven't already. My parents have refinanced to 4.25 for 15 years on two of their properties here in California. Lately in our junk fax bin at work, I've seen faxes stating California refinance quotes as low as 1%. Wonder why all of a sudden tons of these refinancing faxes have been coming through on 3 of our fax lines. A good example of someone that probably should refinance is someone with a adjustable rate mortgage. Why you say? What if the fed decides to bump the interest rate to 7% or 8% next year. That's right the people with a adjustable rate. One of my uncles happens to have one of these deals and my mom being a banker for 28+ years had suggested that he refinance his home here in California and get that lower rate before things get nasty. This was two years ago and he still has not refinanced his home. Just whip out a mortgage calculator and do the math, a 2-3% jump can really make a drastic difference. Uncle, if you're reading this I think you should refinance too, especially because it seems like you do plan on living in that house for good.

The bears and bull-crap.

You've probably hears of the term "bears and bulls", refering to the stock market and a individuals style of investing. Well I found this article on these real estate experts debating whether first time homebuyers or investors should buy now. Both of them have a point and to tell you the truth I'm still confused whether it's the right time to buy because prices can go down any moment now. Knowing my luck, if I were to buy a house now prices would probably start going down the moment I sign my life away.

Even in Bakersfield..

Not only are homes in really ghetto parts of Oxnard getting big price tags, but even in Bakersfield the average price of homes are on a rise. I was reading this article from a Bakersfield website and they even say prices of homes are not balanced with peoples incomes. This is very true because I fall into that percentile and there are many people I know including couples that are struggling. There is so much talk about if the fed were to raise the interest rates to 8% or 9% there would be a reduction in the prices of homes to make them affordable. I'm all for this, even though your mortage will be just about the same if the interest were lower with a higher price tag, just so you can qualify for a smaller loan. I'm not even going to consider these different plans like a blanket mortgage or a 40 year, because you're from what I take from these newer plans you just end up paying more but it just doesn't seem like it. I just need to pick the right 6 numbers for that mega lotto jackpot and all my housing problems will be solved. Back to picking cans and bottles out of my neighbors trash can.