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Women aren’t getting the best mortgage rate when getting a loan compared to men, but it’s not because of gender discrimination. It’s because women aren’t doing enough shopping when it comes to mortgage rates, a new study published in the Journal of Real Estate Finance and Economics finds. 

Women tend to rely on recommendations from their friends when it comes to mortgage rates, while men are more likely to shop around and talk to several lenders in finding the best rate, the researchers note. 

Researchers aimed to shed light on why a 2006 study found that women are 32 percent more likely to get a subprime mortgage than men.

Researchers suggest that “gender disparity in mortgage rates may be addressed by policies aimed at improving women’s financial literacy and search skills.”

Source: “When it Comes to Mortgages, Women Don’t Shop Enough,” AOL Real Estate (Nov. 18, 2011)

More information from the Sierra Foothills, El Dorado, Placer, Amador or Sacramento Counties of California at: www.sierraproperties.com or www.dougandbudzeller.com

With the interests of its Spanish-speaking clients in mind, the California Association of REALTORS® has rolled out a Spanish-language property search Web site. 

Users of sucasa.net can mine for homes using search parameters such as city, price range, and number of bedrooms or bathrooms.  Results are generated as a list or on a map, and driving directions are provided in Spanish. Also, C.A.R. members can forward property links to house-hunters in Spanish. 

“With Spanish ranking as the second most widely spoken language in the U.S. and Spanish speakers making up nearly 35 percent of California’s population, we recognize the market potential for this home buyer population,” said C.A.R. President LeFrancis Arnold.

 Source: “C.A.R. Launches Spanish-Language Property Search Website,” Enhanced Online News (12/01/11)

For Spanish-speaking assistance in the Sierra Foothills, El Dorado, Placer, Amador and Sacramento Counties of California visit: www.sierraproperties.com or www.dougandbudzeller.com or call (530) 409-8351

More small businesses, including those in the real estate industry, are catching on the Groupon bandwagon, creating a deal to get potential home buyers moving. It can create buzz about your business, too. 

Groupon, which launched in 2008, offers daily deals on products and services and boasts more than 115 million subscribers in 175 North American markets.

However, recent news reports from around the Placerville, El Dorado County, California regions note you should beware of expiration dates.

Article by Fox Business News highlights how some real estate professionals are using Groupons: “Through list marketing, a real estate agent could send out a promotion to local residents offering home sellers $500 back at closing for $25. The agent could offer the deal October through December, which are typically slow months for home sales. To foster loyalty, the agent could send a similar deal out next year, but only to her previous customers.”

Source: “How to Build Your Own Groupon,” Fox Business (Nov. 8, 2011)

The 30-year fixed-rate mortgage, the most popular choice among home buyers, dropped to its second lowest reading on record this week, Freddie Mac reports in its weekly mortgage market survey. 

“Market concerns over the European debt market drew investors to U.S. Treasury securities, lowering bond yields and mortgage rates,” says Frank Nothaft, chief economist at Freddie Mac.

Here are how rates fared for the week:

30-year fixed-rate mortgages: averaged 4 percent, with an average 0.7 point, down from last week’s 4.10 percent average. The 30-year fixed-rate mortgage is the second lowest on record, just behind the 3.94 percent record reached on Oct. 6. A year ago at this time, 30-year rates averaged 4.24 percent. 

• 15-year fixed-rate mortgages: averaged 3.31 percent, with an average 0.7 point, falling from last week’s 3.38 percent average. Last year at this time, 15-year mortgages averaged 3.63 percent. 
• 5-year adjustable-rate mortgages: averaged 2.96 percent this week, with an average 0.6 point, dropping from last week’s 3.08 percent. At this time last year, 5-year ARMs averaged 3.39 percent.
• 1-year ARMs: averaged 2.88 percent this week, with an average 0.6 point, dropping from last week’s 2.90 percent average. A year ago at this time, the 1-year ARM averaged 3.26 percent. 

Source: Freddie Mac

Other real estate information and assistance for the Placerville, El Dorado County, California region at: www.DougandBudZeller.com

Buyers may be drawn to distressed properties. After all, “the No. 1 reason to buy a foreclosure is the potential for a good bargain,” says Daren Blomquist of RealtyTrac.com. 

Indeed, discounts often can range from to 20 or 40 percent off on a short sale or foreclosure compared to a sales price of a nondistressed home. 

But despite the big bargains, buyers need to tread carefully before jumping in. Blomquist provides some of the following tips in buying a foreclosure in a recent article at Business Insider. These correlate to our region of Placerville, El Doorado County, California. 
 
But, consider these factors:

Beginners may want to focus on REOs ?

Beginners may want to focus on ”distressed properties” ?

Don’t expect appreciation right away!
 
You can read more of Blomquist’s tips at Business Insider.

 Source: “Here Are Five Things You Should Always do if You’re Buying a Foreclosed House,” Business Insider (Oct. 31, 2011)

Overall, today’s home buyers tend to be fairly knowledgeable about the real estate market, but there are still a few points of confusion in the process, a new survey by Zillow of 1,000 potential home buyers finds. 

Here are the five main areas of confusion the survey revealed: 

• Appreciation: About 42 percent of home buyers believe home values will appreciate by 7 percent a year. Reality: Historically, home values in a normal market appreciate by 2 to 5 percent in a year. 
• Mortgage insurance: 41 percent of buyers think they will have to purchase private mortgage insurance, regardless of the amount of their downpayment. Reality: Buyers only need to purchase PMI if their downpayment is less than 20 percent of the home’s purchase price.
• Appraisals: 56 percent of the buyers said the purpose of the appraisal was to determine if a home was in good condition. Reality: That’s the purpose of a home inspection; an appraisal estimates fair market value. 
• Home owner’s insurance: 37 percent of home buyers said that buying home owner’s insurance is optional. Reality: Lenders require homebuyers to purchase homeowner’s insurance. 
• Ownership: 47 percent of home buyers said a prospective buyer owns a home after the purchase contract is signed. Reality: The purchase and sales agreement is the beginning of the closing phase, but it can be a long process until they finally take ownership. 

Source: Zillow Inc. 

Other helpful information regarding the Placerville, El Dorado County, CA. regions at: www.dougandbudzeller.com

A bill recently introduced in the Senate proposes that foreigners who spend $500,000 or more on a residential property should be eligible to obtain a visa that will allow them to stay in the country.

Several stipulations would be attached to the offer, however. Foreign investors would need to purchase a primary residence of at least $250,000 but spend at least $500,000 on residential real estate (another property could be a rental) — and through cash purchases only. The property would also need to be purchased for more than its appraised value, and the buyer would need to agree to live in the home for at least 180 days each year, which means any foreign buyer would be required to pay U.S. income taxes on any foreign earnings too.  

The visa could be renewed every three years, but it would not serve as a way toward citizenship. 

“Many people want to come and live in the United States,” says Sen. Charles Schumer, D-N.Y., who introduced the legislation this week with Sen. Mike Lee, R-Utah. “They will be here spending money and paying taxes, and the most important thing is they’ll sop up the extra supply of homes we have right now compared to demand, and that’s what’s dragging our economy down.”

Some brokers say that a visa incentive to foreign buyers could potentially even triple sales in their markets. The Sierra foothills, Placerville and Sacramento regions could be in high interest.  

“California, Florida, New York, Colorado, Hawaii, and Texas — those states will see a huge increase in demand,” Sandra Miller, a broker at Engel & Volkers in Santa Monica, told the Los Angeles Times.

Source: “Bill Would Encourage Foreigners to Buy U.S. Homes,” Los Angeles Times (Oct. 20, 2011)

As financial scams evolve to keep pace with the changing American economy, it is important that consumers educate themselves about common scams.  Here are five steps consumers can take to avoid becoming a victim of financial fraud.

1. Research: Before handing over money, look into who is receiving it. Go online to see what others are saying about a company.  If a caller claims to be a relative, ask him or her a few questions that only a relative would know.

2. Conduct Due Diligence: Due diligence is especially important when working with someone claiming to be a lawyer, as they may not be.  According to the FTC, the first question a person should ask is “Are you a lawyer,” to ensure you are entering into an attorney-client relationship.

3. Protect Personal Information: When entering personal information online, such as your name, date of birth, and/or social security number, even if it’s to confirm your identity, consumers should ask themselves how much they trust the website.  Even a transaction that appears to be low risk can make you vulnerable.

4. Use a Certified Housing Counselor: Homeowners having trouble making mortgage payments are advised to speak with a certified housing counselor, who usually charges only a minimal fee, or, in many cases, are free.  Counselors approved by HUD can be found at http://www.makinghomeaffordable.gov/get-assistance/counselor/Pages/default.aspx

5. File a Complaint: If you do become a victim of fraud, file a complaint to make the problem known.  The FTC says that consumer complaints are how they know what’s going on in the marketplace.  Consumers can file complaints with the FTC, the Better Business Bureau, the FBI, the Internet Crime Complaint Center, or the state’s attorney general’s office.

For information on the Placerville, El Dorado County, California regions visit: www.dougandbudzeller.com

Historic Placerville’s gold country now offers a multitude of colors. Trees, shrubs and native brush come alive with fall’s vivid palette. Highway 50 from Shingle Springs through Placerville to Camino is an excellent tour base, offering numerous side loops and historic sites.

 “Apple Hill” orchards, farms, ranches and their restaurants welcome visitors with bakeries and fall harvest treats. Trips can vary from short jaunts to day-long tours from Placerville to the Camino areas north of Highway 50. Gold Bug Mine and the many shops on the Main Street of Placerville offer other attractions

Maps, video and other current information are available on the websites below or contact us for any questions or assistance. We’ve served the “Mother Lode Country” for over 45 years with all types of real estate services.

Video tour of Placerville, El Dorado County, Ca. area:  http://www.youtube.com/watch?v=mGPoK87artA

Maps of area: http://www.applehill.com/CP10_pdf/CP10_20.pdf 
          http://www.applehill.com/CP10_pdf/CP10_21.pdf

The Federal Reserve announced Wednesday it will invest $400 billion in long-term Treasury securities over the next nine months, which is expected to send interest rates on mortgages even lower. The Fed’s move is yet another attempt to try to stimulate economic growth, which has faced stagnation in employment, housing, and household spending over the past couple of years. 

“This program should put downward pressure on longer-term interest rates and help make broader financial conditions more accommodative,” the Fed said in a statement Wednesday.

Mortgage rates have already been reaching record lows in recent weeks, but the Fed’s latest efforts are expected to send rates dropping even further. Economists predict that interest rates could drop by a few tenths of a percentage point, which would be significant to anyone getting a loan to purchase a home. 

However, tough lending standards remain an obstacle that is keeping many home buyers on the sidelines. Banks have tightened their lending standards, which have made even some buyers with good credit struggle to qualify for the best rate. This remains the biggest obstacle for buyers in our Placerville, El Dorado County, California region. 

Source: “Fed Will Shift Debt Holdings to Lift Growth,” The New York Times (Sept. 21, 2011)