Alex Salkaver reported on Street Fight “that a one-star differential in ratings on the popular crowd-sourced review site can bump revenues by 5% to 9% at a local restaurant. This is not entirely surprising. What is more interesting is that chain restaurants did not benefit from any significant increase in profitability or revenue corresponding to Yelp ratings.”

On our online website www.BreakingStocktonNews.com, Yelp! reviews are part of the ticker tape news we come across regularly. These reviews are about 90% restaurant reviews and there are so many that we had reduce the feeds to report only twice in every six hour window. They are primarily on local restaurants.

Is Yelp! Only For Restaurant Reviews? Although they are the majority, other businesses participate and benefit from their Yelp! business accounts. First Priority Financial (Mortgage Banker/Broker) in Stockton, CA has a business account and they recently received a phone call from potential first time buyer. When asked how he found about their business, he mentioned he found them on Yelp!, liked their reviews, visited their website and decided to contact them.

Can Yelp! enhance your brand, create calls and increase revenue for local businesses? It sure can with the proper hyperlocal marketing.

How Affordable? Since 1963, it has cost an average of approximately 43% of ‘per capita’ or individual income to finance the cost of a median priced home (20% down payment and prevailing 30 year fixed rate mortgage). Right now, it’s only about half of that cost at approximately 22%.

Are you holding off on a purchase for fear that prices might fall further? Chances are that some sellers might be thinking the same thing. If you’re smart about it, you can use that as an advantage to strike the best possible deal on a home today for once a seller believes that prices have bottomed or are going back up, your advantage will be gone.

Don’t confuse Price with Payments – Gambling on the expectation of a lower price tomorrow at the risk of higher rates can cost much more in the long run than locking in a sure thing today. Ex. $200,000 30 Yr. fixed loan @ 4.625% = $1028/mo. today vs. $180,000 @ 6.5% = $1137/mo. later. In other words, paying less can still cost you more.

Own, Rent, or Borrow – One way or another, a home is something we all need every day. The numbers here tell the story and it’s no secret that values have fallen, yet over time, that’s not the case. As you can see by the chart, values over the last 10 years in most states show very healthy appreciation, and over the long haul (map below) all states have.

We don’t get a history lesson in the news because the news is about the moment and the more dramatic the better. That’s what sells advertising and that’s how they get paid. For the rest of us, taking a rational, longer term view of things makes more sense. This is particularly true when it comes to a home, for this is something we are likely to own for many years rather than just moments.

Contact the team at First Priority Financial in Stockton to learn if this is a good time to become a homeowner.

1. FHA Loan limites are reduced across the US

2. USDA has two changes
a. Gaurantee Fees are reduced from 3.5% to 2%
b. Now requires Mortgage Insurance

3. VA Funding Fees are reduced.

Want to know more about these changes and/or these RE loans programs, contact the team at First Priority Financial – Stockton Branch for more information.

You can start by visiting your local library and bookstores and of course the internet. Research the design and cost. Will a simple paint job do for now or will it include changing some fixtures? For some of the more involved projects, you should contact several contractors.

Projects like installing tile or appliances you may consider attending a class at your community college or local hardware store. This weekend I simply decided to clean out the tile and grout with an extra deep clean to give the bathroom a fresh look. It’s a start and within my budget.

When you are ready to start your next residential purchase or refinance, contact the team at First Priority Financial, Stockton Branch for help.

This ranking is updated quarterly and they report that about 14 percent of single-family homes in the US are rental properties. It is the “risk-return premium” that investors are demanding from rental properties and it can be added to the regular capitalization rate to create a risk-adjusted cap rate when properties are fully occupied that makes it extra attractive.

So even though Stockton is often high on foreclosures and negative equity, they are a positive location for investors. Are you interested in learning if you could be an investor? If so, please contact the team at First Priority Financial in Stockton now and find out how.

A “Bond Rollover” occurs around the 10th of every month at which time the current month mortgage coupons are closed out. When lenders sell the mortgages that the loan originators close, they are sold forward to be delivered. How this works is if a loan is closed in September, it is priced into October’s coupon. The Rollover
is when when they start promising coupons to be delivered into the next coupon month.

There are several coupons running at a time, so they adjust the tracking to the proper coupon. The new price is what investors are paying for that month’s coupon. We don’t have to worry about that affecting the rate sheet because any new loans are placed with next months coupons. Today opened 24 bases points lower than what ended on Friday, 09/09/11. If you’re in the market for a residental purchase or refinance, the team of First Priority Financial in Stockton, CA can help you.

Fannie and Freddie operate in the U.S. secondary mortgage market, but they don’t sell mortgages directly to homeowners. What they do is buy mortgages from banks and other lenders.

The Financial Crisis Inquiry Commission reported to “ensure generous compensation for their executives and employees,” that Fannie and Freddie loosened underwriting standards leading up to the financial crisis. They purchased and guaranteed riskier loans and moved up the purchases of mortgage-backed securities to please Wall Street analysts the commission determined. Although they partially caused the financial crisis, they were not the primary cause.

Currently the Obama administration and Republicans in Congress agree that Fannie and Freddie should be done away with. Are you in the market for a home mortgage and will abolishing Freddie Mac and Fannie Mae make it more difficult to obtain one? Let us know what you think?

Create a List
Once you have found a Real Estate Agent you are comfortable with, you will want to make the most of your time when house hunting. We have some great Agents in our Stockton area. Giving your Agent a list of what you are looking for will help narrow the search and save everyone some time. Your list should include:
* Your price range
* Number of bedrooms you want
* Number of bathrooms
* Size of property
* If you want a porch, patio or balcony
* Central heat and air conditioning
* Garage
* Neighborhood, and
* Any other amenities you would like

Giving your real estate agent a list of your preferences will allow
them to spend more time researching homes that fit the criteria. You
should list these amenities from greatest to least important because no
home is perfect and you will not get everything you want or need. Let your
agent know that you are flexible, but that you really want to concentrate on
certain items when looking for a home.

Viewing Homes
When looking at homes with your Agent, be sure to ask any questions you may have.
While these questions may seem small, they may
be important to your happiness. Common questions people ask their agents are:
* How old is the home?
* How many owners has the home had?
* What kinds of renovations have been done to the home?
* How old is the plumbing?
* How low are the sellers willing to go?
* How old is the carpeting and flooring?
* How old are the windows?
While your Agent may answer some of these questions before you ask them, you
should ask any questions that may influence your decision to buy a home. If
you do not want to put too much work into fixing up the home, you may want to buy a home that is ten years old or less. If your Agent does not know all of the answers to your questions, they should be able to find out and will give you an answer within a day or two.

Taking Pictures
One of the best ways to remember the homes you have seen is to bring
your camera and take pictures. Get permission from the Agent first before
taking pictures of another person’s home. Many times, after looking at a
few houses, you will forget how big the kitchen in home number two was
in comparison to home number five. Having pictures will give you a better
idea of the square footage and how much room you will have to work with.

Narrowing Down Your Choices
After a few weeks of viewing homes that fit what you are looking
for, you should be close to finding a home that you will want to make
a bid on. Once you have found a home that you like, you should make an offer.
Contact your Agent as soon as you can so that they can draw up the paperwork,
contact the buyer’s agent, and make an offer before another person does.
Make an offer as soon as you can in order to avoid a bidding war.
Bidding can be long and drawn out in some cases. If you do not have the
time to wait out a bid or if you cannot bid any higher, then you may be
looking for another home to purchase. While this can set you back,
you should try to stay positive and find a home that is right for you.
Make sure that you get Pre-Approved before shopping for a home.
We can help you get your Pre-Approval at the First Priority Financial
branch in Stockton. Click the “Apply Now” button on the upper right corner
to get started.

Just announced: The FHA maximum loan limit for San Joaquin County
is $304,750 as of October 1, 2011
for a One-Family dwelling.

Freddie Mac announced on their Quarterly Product Transition Report released recently that the second quarter of 2011, 95 percent of refinances was done as a fixed-rate loan.  It did not make a difference if the original loan was an adjustable rate or fixed rate.

For those who had a hybrid adjustable (where the term is fixed for a set amount of years then adjusts), 55 percent of the borrowers changed to a fixed rate where 45 percent refinanced back into the same type of hybrid adjustable.  The second quarter of 2004 was the last time we saw hybrid to hybrid refinancing at this level. 

Many borrowers decided to shorten their term.  Freddie Mac reported that 37% chose to refinance from a 30 year to a 15 or 20 year term.  We haven’t seen this share of term reduction since the third quarter of 2003. 

Rates are well below long term averages.  Whether you currently have a fixed rate or adjustable rate loan, you may want to consider speaking with a mortgage professional to see if a refinance would be beneficial.  You may qualify for a reduced payment or reduced term.  Contact us today for a refinanced analysis or visit our “Adopt My Mortgage” page to have us look out for future refinance opportunities.