Tuesday, January 25, 2011

Two affordable north side listings on the lake-5100 N. Marine Drive #4E and 4250 N. Marine #1704

I have just listed two well priced condos on the lake front. The first is at 5100 N. Marine Drive just south of Foster. It is unit #4E and is a true one bedroom for $115,000. The bright, south facing unit is in very good condition with hardwood floors, dishwasher and individual heat and air conditioning. The building has an outdoor pool, 24 hour door staff, beautiful redone lobby and is in good financial health. For a complete virtual tour and property details, visit the link at  by clicking on 5100 N. Marine Drive #4E.

Also on the market at $115,000 is 4250 N. Marine Drive #1704. This is a high floor junior one bedroom which also faces south with beautiful lake and park views. If you want bright, this is it. The unit could use minor updating but is a great value for the area. The building has all the amenities you could want including 24 hour door staff, on-site management, outdoor pool, exercise room and immediately available on-site garage parking. For a complete virtual tour and property details, visit the link by clicking on 4250 N. Marine Drive #1704.

For showing or questions on either properties, contact me directly at 312-368-3280.

Tuesday, January 11, 2011

Fannie Mae to add more loan fees

My good friend Bonnie Vasilion offers some insight into mortgage interest rates and what we might expect in the next several weeks. Many consumers are frustrated with the fees and guidelines lenders and Fannie Mae are imposing in order to avoid any risk at all. The truth is, mortgages are a risk at some point. But to deny strong borrowers is putting real pressure on the housing market.

What happened? Mortgage rates rose; and they rose quickly. (Though rates are still super low, historically speaking!)

Why? Without getting into too many details, it seems that a combination of “fear and panic” on the part of Mortgage Backed Security (bond) traders regarding reaction to “QE2”, concerns about inflation, appearances of an improved economic outlook, etc. all contributed to an increase in rates.

What next? I know some people are hoping that the “fear and panic” subsides and rates come back down. Anything could happen. However, there is a new issue, besides cyclically higher rates, looming on the horizon that could in fact drive the cost of home financing even higher: Proposed increases in Fannie Mae/Freddie Mac “ risk-based pricing overlays”.

In a December 23rd memo to investors, they described changes proposed for the Spring of 2011. We already have “risk based pricing overlays”, for example, lower credit scores = higher rates, “cash out” rates are higher than just refinancing what you owe or making a purchase, lower down payment = higher rates. The overlays are going to get even pricier, and the proposal has even the most ideal borrower paying an overlay just because Fannie/Freddie says ANY loan is a risk these days. (I read ¼ point per loan, just to “get in the door”: that translates to $ 1,000 on a $ 400,000 loan).

Below is an article I found that discusses this. There is not a lot of information available on this yet, but I will share it as it becomes available.

Boston Herald--Fannie Mae to add more loan fees

What’s the point? As you’re heard me say before, If buying or refinancing makes economic sense to you now, it makes sense to act now. Waiting for lower rates to come back seems much less likely than higher rates and financing costs.