HotelDel DownTown Sunset



Greetings from Jennifer Ross -  Realtor


Eliot and JenniferMy son Eliot moved out this week, into a small beach cottage with his two grammar school friends.  I will spend the weekend bleach bombing his bedroom and bathroom - need I say more? 




Changes to Refinancing Program Could Woo More Homeowners  


The Federal Housing Finance Agency announced changes to the program last month that have sparked optimism that it might help borrowers refinance boom-era mortgages after all.

The Federal Housing Finance Agency projects changes to the program could allow it to reach as many as 1 million additional homeowners between now and the end of 2013, its extended expiration date.

The program has rescinded certain risk-based elements that ultimately disincentivized borrower participation.  Namely, risk-based fees paid by borrowers who refinance into shorter-term products have been eliminated, and similar fees paid by other borrowers have been lowered as well.  Also, the program has removed the provision that limited participation to those whose mortgage loan-to-value ratio was less than 125 percent.

Observers have pointed to the change to the mortgage cap as perhaps HARP 2's most meaningful alteration, because of the propensity of underwater borrowers across the country.  According to CoreLogic, 10.9 million, or 22.5 percent, of all residential properties nationwide were in negative equity in the year's second quarter.

That share is even greater in San Diego, where 28.2 percent of all properties with a mortgage are underwater. That accounts for 166,663 homes countywide.

Additionally, borrowers will no longer need to pay for a new property appraisal to refinance, provided there is an automated valuation model in place through Fannie and Freddie.  Previously, borrowers struggling to stay current on their mortgage payments had little incentive to seek a refinance, as long as these three provisions were in place. The announced changes, combined with the historically low mortgage rates currently available, have inspired hope within the industry that borrowers will now seek to take advantage of an opportunity to lower their monthly payments.

If that happens, it would lower the number of foreclosures facing the housing market, and the downward pressure foreclosures put on prices.

There's also hope from the administration that the reduction to borrowers' monthly mortgage payments would serve as a quasi-fiscal stimulus. With less money dedicated to housing costs, homeowners would conceivably have more to spend in the broader economy.

"If you give people this opportunity, make payments more manageable, that'll help the housing market and in turn help the economy," said Alan Gin, economist at the University of San Diego.  He also said San Diego would see a disproportionate benefit from the changes, because of its higher share of underwater homeowners.

"I think we're going to have fairly widespread adoption," said Norm Miller, director of real estate academic programs at the Burnham-Moores Center for Real Estate at the University of San Diego. "Those less likely to exercise strategic default and don't want to mess up credit, they'll adopt. I think it'll be extensive."

John Olbrich, president of American Security Mortgage, said the changes make it easier for people to make payments and stay in their homes.  "I don't see how it'll add any risk to government at all," he said. "There might be an upfront cost, but in the end, the savings will be greater."

Fannie Mae and Freddie Mac intend to issue operation instructions to lenders by Nov. 15, under the hope that some will be able to accommodate applications by Dec. 1.  "I think what's going to happen is this is going to get a positive response from households, and given how underwriters behave now, they'll be overwhelmed, and the question will be how they deal with the volume," Miller said.


Courtesy of SDDT.



Video of the Week


Soldiers Surprising Loved OnesSoldiers Surprising Their Loved Ones

In honor of the upcoming Veteran's Day, here is a great "Best of" compilation of soldiers coming home and surprising their families. I dare you not to shed a tear!



Famous Quotes

Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma - which is living with the results of other people's thinking. Don't let the noise of other's opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.

Steve Jobs

 As always, feel free to give me a call 800-913-7677 with your real estate needs.  I appreciate your referrals.



Acedemic Earth 


Jennifer Ross


Experience Counts!
Over 22 years in
Real Estate sales
Serving all of San Diego


Office: 800.913.7677
Direct: 619.985.7340





Current Mortage Rates

 ( weekly avg)

 30 yr fixed: 4.23%

15 yr fixed: 3.48%




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