Archive for February, 2012

7 Things To Watch Out For When Getting A Loan to Buy a Condo On Oahu

1) The owner-occupancy rate typically needs to be above 50% for both FHA and conventional loans.
2) If there is pending litigation against the HOA, it could be a deal-killer for the loan.
3) If the HOA does not have a sufficient current reserves and a defined budget for long term manintenance needs, your loan may not get approved.
4) If the HOA fee delinquency rates are above 15%, your loan may not get approved.
5) If the condo project does not maintain sufficient insurance coverage, your loan may get denied.
6) If you are getting an FHA loan, make sure the condominium complex is on HUD’s approved condo list.
7) No more than 10% of units in a complex can be owned by a single owner.

I can assist you in determining if your condo of choice is compatible with the loan type your are planning to utilize…..call me today and we can discuss how I can hlep you…….Aloha, Jon..

Lowest 30-year fixed mortgage rate EVER!

MSNBC.com staff and news service reported this week that on 2/2/2012, the country experienced the lowest average rate on the 30-year fixed mortgage rate since records have been kept, creating a tempting target for people to refinance their homes.

Freddie Mac said Thursday the average rate on the 30-year fixed mortgage hit 3.87 percent, down from 3.98 percent the prior week. That’s below the previous record of 3.88 hit two weeks ago.

The average on the 15-year fixed mortgage fell to 3.14 percent, also a record low. Records for mortgage rates date back to the 1950s.

Mortgage rates have hovered near 4 percent for the past three months, and have perhaps contributed to a slight improvement in the housing market. But many homeowners remain underwater and the pipeline of foreclosures continues to be huge, putting heavy pressure on housing prices. High unemployment and scant wage gains have made it harder for many people to qualify for loans. Many don’t want to sink money into a home that they fear could lose value over the next few years. Nevertheless, if you have not refinanced your home mortgage yet, now is the time to do so…and please call me if you are thinking about moving up in price point on your home, as there are some nice properties on the market right now that you might be able to leverage with the new lower rates……Aloha, Jon.

Yippee! We are number one……Oh, wait, that is not good.

The Honolulu Advertiser recently reported that new information from the federal government indicated that Hawaii residents paid the highest rates for electricity in the country in 2010.

The U.S. Energy Information Administration says the average price in Hawaii that year was 25.1 cents per kilowatt-hour. Electricity costs in Hawaii topped the nation at 25.12 cents per kilowatt-hour in 2010, up 79 percent from 14.03 cents a kilowatt-hour in 2000, according to the U.S. Energy Information Administration.

During the same period the average price of electricity nationally rose to 9.83 cents a kilowatt-hour from 6.81 cents a kilowatt-hour, an increase of 41.9 percent.

Reportedly, in 2000, Hawaii residents paid 14 cents per kilowatt-hour for electricity. The increase in rates is blamed on the higher use of higher priced petroleum products.

Things are only getting worse, as the Honolulu advertiser recently reported that the Oahu rate rose to 35.10 cents a kilowatt hour in December 2011 from 24.85 cents a kilowatt hour a year earlier, an increase of 41 percent.

Bottom line…….The expectation of ongoing high electric rates needs to be a forefront of every homeowners mind as we move forward……and being number one is not always the best……..Aloha, Jon.