Hard to imagine, but summer is starting to wind down. We are hopeful that everyone is enjoying the warm summer days and cool summer nights that Los Angeles provides all of us. Might we add, Los Angeles is perhaps the best overall city in the world!! Speaking of the world, pretty scary place right now. The on-going rhetoric battle between the United States and North Korea is needless to say a little unnerving. Hopeful that cooler heads prevail and a dialogue that leads to a more muted outcome occurs. Needless to say, the alternative is not a good one…..Difficult to fathom that humanity hasn’t evolved from this type of behavior..This geopolitical tension has kept rates at very attractive levels.
Our recommendation as it relates to the mortgage arena is to allow Centek to evaluate your existing mortgage profile and analyze if any alternative programs would be better suited for your overall financial strategy – reducing the amortization of your current loan, changing from an adjustable rate mortgage to a fixed rate or conversely changing from a fixed rate mortgage to an adjustable rate program. Mortgage rates have dipped below 4% and if rates continue down this path, our steadfast philosophy is to have your loan package in and ready to go in order to best take advantage of a further rate decline. If we start the process further down the line, we might not be able to catch the window of opportunity. Another segment of the financing arena which we are seeing more and more issue with is the student loan situation. Many of our younger clients are having difficulty with qualifying for their first home loan because of the student debt load. Our suggestion to many clients hast been, if possible, to assist with their children’s home purchase by either co-signing on the loan for them or refinancing their home’s in order to pull out cash to pay off the student loans. These are difficult decisions for all parties on a multitude of fronts, but certainly worth considering.
In regard to the real estate market, we feel the most prevalent issue is with the lack of inventory for sale. The lack of inventory is due to several interrelated factors that we have not recently experienced. The escalation of property prices in our California market (especially our SoCal & Bay areas),the vibrant California economy & the increases in the stock market. The combination of these and other factors including the demand from foreign investors, has limited the number of available properties on the market. The flip side to this equation is where is the seller of the property going to move? This point is a large reason as to why more properties are not for sale. Where does one move when they sell their home? This is a problem and a main reason why with elevated home values more properties are not on the market. The move up buyer is difficulty in selling their existing house and being able to afford the next level up in price….This by no means applies to everyone, but is a major point in the overall real estate market place.
Please feel free to contact us at 310 275 3202 to discuss your financing or overall real estate acquisition or sales needs. We can review and strategize with you. Stay tuned!!
Gloria Shulman & Curtis Cohen