15-Year Fixed Rate Mortgages Look Cheap Compared To Comparable 30-Year Fixeds

It's a great time for Renton buyers and homeowners to look at the 15-year fixed rate mortgage.

According to Freddie Mac's weekly Primary Mortgage Market Survey, the relative "discount" of a 15-year fixed rate loan as compared to a comparable 30-year product is the largest in recorded history. The interest rate spread between the two benchmark products is now 0.77%, nearly double the recent, 5-year average of 0.44%.

Despite its lower rates, however, homeowners that opt for a 15-year fixed mortgage should be prepared for higher monthly payments. This is because the principal balance of a 15-year fixed is repaid in half as many years as with a 30-year amortizing product.

The payment increase is 41% higher at today's rates. If you can manage that, though, you'll reap dramatic interest payments savings over time. For each $100,000 borrowed at today's market interest rates, your mortgage interest costs on a conforming 15-year term mortgage will be lower by $56,000 versus an identically-structured 30-year term. The more you borrow, the more you save.

That said, not everyone should use the 15-year product.

One reason you may want to avoid 15-year products is because the higher payments may lead to financial stress. Unless your monthly income far exceeds your monthly debts, choosing a 30-year product may feel safer for you.

Another reason is that, with less mortgage interest paid, 15-year mortgages don't allow for as many mortgage interest tax deductions. This can have tax implications to you each year. Or, maybe you prefer to have your home leveraged, investing "spare dollars" in stocks and bonds.

These are all legitimate cases to stick with a 30-year term, but if you've ever explored the idea of using a 15-year fixed rate mortgage for your home, today, the math is in your favor. Talk to your loan officer before the rates start rising.

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Tampa Real Estate Trends for Buyers/Sellers

The Real estate market is still changing. Homes are selling every day however, buyers have changed their expectations. Keeping you informed on what to expect when buying or selling a property in today’s market.


1. Buyers are opting for smaller homes

Constraints on housing market really have made buyers reevaluate what is necessary in their next home purchase. A study conducted by the National Association of Home Builders (NAHB) reveals that homes are expected to be ten percent smaller in the next couple of years. “To save on square footage, the living room is high on the endangered list-52 percent of builders expect it to merge with other spaces in the home by 2015 and 30 percent said it would vanish entirely.”

2. Heavy influence on purchase decisions can be swayed in favor of green and eco friendly properties

The NAHB reports that not only floor plans are changing. “68 percent of builders are including green and eco-friendly features by 2015. This includes low-E windows, engineered wood beams, water-efficient feature and energy star rating throughout.”

3. Curb Appeal is still very influential in the buyers’ willingness to buy their new home

The National Association of Realtors reports, “49 percent of buying decisions are based on curb appeal” in a normal market. Even in times of foreclosures and short sales, buyers judge whether to view a property or not by the curb appeal. Curb appeal doesn’t just affect the property being sold either; a buyer looks at the neighborhood as a whole. Improving curb appeal can be as simple as removing some weeds, retouching paint, or simply asking a neighbor to straighten their yard if you are on good terms. It may make the difference in whether you get a buyers attention or they move on the next real estate listing.

It is important as a buyer, seller, relocation, or investor to know what trends affect your real estate decision. To get in contact with a real estate expert in Tampa, Florida call SI Real Estate at (813)631-5144 or email us at YourHome@SIRealEstateInvestments.com.

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More Vacay Mish-Mash

Sorry for the delay, buttons, but Your Mama and the Dr. Cooter–and our long-bodied bitches Linda and Beverly–are actually on a wee getaway vacay with all the grays and gays out in Palm Springs, CA. We spent the better part of today day with our almost-famous artist pal Henny Penny during which we went t0 the Palm Springs Art Museum. We had a look-see at a print retrospective of John Baldessari, passed through the permanent contemporary collection, had our photos taken with a bone-chilling Duane Hanson sculpture andtoured a small and incomplete but still interesting look at the architecture of noted Coachella Valley modernist architect Donald Wexler appropriately called Steel and Shade. Then we had a crappy late lunch. Now we're back at our home base sitting by the pool thinking we should probably think about getting back to our real home. Anyhoodles poodles...

There has been heaps and hordes of hoopla and hoo-ha the last few days over a proposed 80,000-plus square foot compound an as yet unidentified property owner wants to build on a 5.2-acre property in the upscale Benedict Canyon area of Los Angeles, CA. The proposed plans call for an opulent 42,681 square foot mock-Mediterranean-style main house, a double-winged 27,000-plus square foot "son's villa," a 4,400 square foot guest house, a 5,300 square foot structure for housing staff and a 2,700 square foot gatehouse.

The Los Angeles Times revealed earlier this week that the proposed monster mansion is to be built for a single man with three children. Ownership of the property is shielded through a serious of LLCs, attorneys and the like but there is much speculation that the property owner may be a Saudi royal, specifically Prince Abdulaziz ibn Adbullah ibn Abdulaziz al Saud who happens to be divorced man with three children.

The massive–and some might say utterly preposterous–scale of the project has the dander up of Benedict Canyon residents who have formed an ad hoc group to stop the construction of the compound that will rival the square footage of Hearst Castle in San Simeon, CA. Interestingly, one of those who oppose the colossal compound is Hollywood honcho Michael Ovitz who himself recently completed his own humongous and über-contemporary crib in the 'hood.

There are many hoops and hurdles for this unnamed property owner to hop through before he can break ground on his mini-mall sized mansion but iffin Your Mama were the betting type–and we're not–we'd wager this real estate size queen will get his way even if he has to scale things back to a more modest but still elephantine 50 or 60,000 square feet. For more information on the group opposed to the development visit their website Save Benedict Canyon.

It's come to our attention via a well-connected Los Angeles real estate-o-phile that the possibility of an 85,000 square foot compound in the Benedict Canyon area isn't the only possible construction of a mega-mansion that's working the last nerves of concerned citizens in some of L.A.'s priciest zip codes.

Over in the Franklin Canyon area of Los Angeles, another angry ad hoc group staunchly opposes the efforts of controversial Ritz-Carlton hotel developer Mohamed Hadid to construct a huge and palatial residence–that he claims is for his own use–atop an unspoiled peak much cherished by urban-dwelling hikers and nature lovers.

Mister Hadid, the children surely recall, is the same man who famously sold his Bel Air mega-mansion Le Belvedere in the summer of 2010 for a gut-punching and record-setting $50,000,000. There is at least one person Your Mama knows who believes that fifty million dollar deal was shady and presented us with some documentation that indicates that Mister Hadid's (former) Bel Air estate is now bank-owned, but that's another alleged scandal for another time.

Mister Hadid has already begun to bulldoze the mountain to create a large flat pad for the sprawling spread he wants to erect but he was presented with a "stop work" order in late February. Those who want more information should visit the Save Franklin Canyon website.

Finally, there have been many queries from the kids as regards to the real estate history of two-time Oscar winning actress Dame Elizabeth Taylor (Who's Afraid of Virginia Woolf, BUtterfield 8, Suddenly, Last Summer, Cat on a Hot Tin Roof and etc.) who went to meet her maker earlier this week at the too-young age of 79. Your Mama could spend hours recounting each of the many homes around the world she's owned but it's already been done and done well here and here.

The world lost one of it's last great Tinseltown stars with Elizabeth Taylor who championed AIDS funding and research at a time when it was simply not socially acceptable to do so. May she rest in peace.

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New Home Sales Fall To All-Time, Recorded Low. Maybe.

Sales of newly-built homes plunged 17 percent to an seasonally-adjusted, annualized 250,000 units in February, and the supply of new homes rose to 8.9 months in February -- a 1.5 month jump from January.

It's the lowest New Home Sales reading in recorded history, according to the Census Bureau, and the third straight report to signal that home values may be slow to rise in Renton and nationwide this season.

Earlier this week, the National Association of REALTORS® reported Existing Home Sales down 10 percent from February, and the Federal Home Finance Agency said home values slipped 0.3 percent between December and January.

The media has picked up on the trend, too. 

• No Spring In Housing's Step (WSJ)
• Is Housing Really In Recovery (CNBC)
• Experts See Weak Recovery (UPI)

There's two interesting angles here. First, the one that's largely neglected in the stories online.

Although New Home Sales read -17% last month, the data's Margin of Error read ±19%. This means that, once additional homes are added to February's New Home Sales tally, it's possible that the reading actually rose 2%.

Because the Margin of Error exceeds the measured reading, February's New Home Sales figures are of "zero confidence". The Census Bureau even says as much in its report.

Or, if the initial reading is accurate, a second story emerges. Namely, how an increase in home supply may help this season's buyers to negotiate better prices for a home, and upgrades from a builder.

There's often more to a real estate story than its headline and February's New Home Sales proves it.

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Bea Arthur's Cliff May Available to Lease

OWNER: Estate of Bea Arthur
LOCATION: Los Angeles, CA
PRICE: $32,500 per month
SIZE: 5 bedrooms and at least as many bathrooms

YOUR MAMAS NOTES: Although she's a pop culture icon who occupies hallowed ground at the very pinnacles of high-camp gaydom, Emmy- and Tony-winning actress and comedienne Bea Arthur (Mame, Maude, Golden Girls) was a formidable, principled and ground-breaking woman of substance who–in the 1970s–fearlessly took on taboo social and political issues such as abortion, the Vietnam War and civil rights at a time when it was strictly verboten for those subjects to be dealt with openly...on television...by a woman, an actress with the voice of a man. We say that, children, with only deepest of respects for the late great gravel-voiced Bea Arthur who went to meet her great director in the sky in April 2009.

Thanks to a kind and covert communique from our trusted informant Ima Tattletale that included semi-secret listing information we've learned that the executors of Miz Arthur's estate–whomever they may be–have quietly put her home in the rustic and bucolic Sullivan Canyon area of Los Angeles, CA out for lease. The listing information Your Mama has in hand does not explicitly state an asking price but, once again, our insider Miss Tattletale snitched that they–whomever they may be–wants $32,500 per month for the nearly 4-acre estate with its sprawling and fully updated Cliff May-designed hacienda style house.

Property records show that twice-married and twice divorced Miz Arthur owned the urban Arcadian estate since at least the mid-1990s. It was here at this house, as we understand, where the former Marine–that's right, puppina-weenahs, Miz Arthur was a Marine–lived out the end of her days.

Listing information in our possession shows that the entire house and grounds were given a thorough overhaul in 2005-2007 by a "visionary designer/builder" named Matt Saks who may or may not be Miz Arthur's son Matthew Saks. The house, as best as we can surmise includes four guest suites–two large and two smaller–each with private pooper plus an expansive master with sizable bedroom, well-scaled sitting area with fireplace, two offices, big bathroom with jetted tub and steam shower, and a fitted walk-in closet the size of a small garage.

The main living spaces–living and dining rooms and a den–have vaulted ceilings with exposed beams, honed travertine floors and painted brick fireplaces. Wood-framed sliding doors marry the spacious living room to the large terraces that surround the house and in the newly re-worked kitchen there are slab marble counter tops, high-grade stainless steel appliances and a not entirely successful combination of white and chestnut-colored wood cabinetry. The kitchen, which has a short breakfast counter, is open to a dining area and cozy family anchored by a stone fireplace.

The halcyon grounds include an over-sized flagstone motor court, three car garage, crescent-shaped swimming pool and raised sap surrounded by flagstone terrace, and a tennis court. Paths and trails with night-lighting for evening strolls wind and meander the hillside grounds.

And with that, it's back to our semi-warm quasi-vacation...

listing photos: Partners Trust

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10 U.S. Cities With The Steepest Rent Increases (2010)

Home sales data is easing so far in this calendar year. Home resales and new construction have dropped to multi-month lows and, in many cities, home supplies are rising. One housing sector that's not slowing, however, is rentals.

The rental market is booming.

As reported by the Wall Street Journal, the average apartment vacancy rate is 6.6% nationwide, down from 8.0% last year. In addition, the number of occupied apartments rose by more during Q4 2010 than during any comparable period of the last 10 years.

It's a major reason why rents are up 2.3%.

Some areas, however, fared worse than others. This study of rent increases as published on MSNBC, for example, lists the 10 U.S. cities in which rents increased the most last year. And they may not be the cities you'd expect.

In order:

1. Greenville, SC (+11.2%; $669 average monthly rent)
2. Chattanooga, TN (+10.4%; $726 average monthly rent)
3. Savannah, GA (+8.4%; $866 average monthly rent)
4. Portland, OR (+8.1%; $875 average monthly rent)
5. San Jose, CA (+8.0%; $1,716 average monthly rent)
6. Nashville, TN (+8.0%; $786 average monthly rent)
7. Tacoma, WA (+8.0%; $900 average monthly rent)
8. Denver, CO (+7.5%; $873 average monthly rent)
9. Washington, DC (+7.4%; $1,473 average monthly rent)
10. Raleigh, NC (+7.4%; $785 average monthly rent)

Big cities New York (#18), San Francisco (#19), and Chicago (#24) showed modest gains, by comparison.

Not everyone across WA wants to be a homeowner, but renters are facing a squeeze. With mortgage rates historically low and home values slow to recover, in many cities, the cost-benefit analysis is shifting toward buying.

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Mish Mash Tuesday

Back in April of 2007 super-producer Jerry Weintraub (Nashville, Ocean's Eleven, Twelve, and Thirteen, Karate Kid I, Karate Kid II) put his 6.63 acre ocean front estate in Malibu, CA on the market with an astronomical and truly breathtaking asking price of $75,000,000.

The gated and secured property includes an 11,810 square foot main house with 7 bedrooms and 11 poopers plus two separate guest houses, fitness facility, two barns, stables, a north/south-aligned tennis court, swimming pool and spa and a private road down the bluff to the beach.

With no takers the property was taken off the market and guess what kiddos, it's back on the market with a drastically and radically reduced asking price of $42,500,000. A few quick flicks of the well-worn beads of Your Mama's bejeweled abacus shows that's a stunning and staggering 43% discount from the original asking price.

Whether a 43% discount is enough to scare up a big-bucks buyer remains to be seen but whatever someone pays it'll be a colossal windfall for Mister Weintraub who paid a mere $1,300,500 for the multi-parcel property back in the late 1970s and 80s.

photo: Coldwell Banker Malibu West

Actor John Krasinski (The Office) spent $921,500 in March of 2005 for a 1,279 square foot house in the Norma Triangle are of West Hollywood, CA. A few months later he flipped the 3 bedroom and 3 pooper residence back on the market where it languished for nearly 6 months before being de-listed. In September of 2009, Mister Krasinski re-listed the walled and gated Country English cottage with an asking price of $1,245,000. But Mister Krasinski–bless his fickle real estate heart–had the property de-listed again just two and a half months later.

This week unlucky in real estate Mister Krasinski hoisted the little house back on the market with a much lower asking price of $945,000, a number that just might get the deal done.

In the summer of 2009 Mister Krasinski and his then girlfriend now wife paid $1,857,000 for a privately situated house above the Sunset Strip. Back in early March of 2010 Your Mama heard through the Tinseltown celebrity real estate grapevine that he had that property quietly back on the market with an asking price of $2,195,000. Iffin we're being honest we'd confess that we don't really know if Mister and Missus Krasinski still have the house (quietly) up for sale but property records do reveal that the house is still owned by the cute couple.

photo: Westside Estate Agency (via Realtor.com)

Hot-headed Oscar-winning actor Aussie actor Russell Crowe (Gladiator, A Beautiful Mind) and his wife Danielle Spencer have been on the hunt for a new family spread in the swank suburbs of Sydney (Australia) for quite some time. Way back in 2007 they (reportedly) had a looks see at Altona, a lavish waterfront manse in Point Piper then listed with a spine-tingling asking price of $50,000,000 (AUS).

In 2009 they (reportedly) make an offer on the former French consulate called Le Manoir but they were edged out by international media heir Lachlan Murdoch–that would be Rupert's son–and his wife Sarah who paid a neck snapping $23,000,000 for the property.

They next, in late December 2010, (allegedly) took a shine to the huge and hulking Headingly House, the family seat of former ambassador to France John Spender and his ex-ladee-mate, Italian born Australian fashion designer Carla Zampatti. There were multiple reports that Mister and Missus Crowe were thisclose to closing on the posh property but, alas, that purchase never came to fruition.

Now all the Australian tabs and news outlets such as the Sydney Morning Herald are reporting the Mister and Missus Crowe finally settled on and purchased an estate with the unfortunate name of Te Puke (pronounced teh-pook-eh", a 1909 mansion with a 1927 Arts and Crafts style second floor in ritzy Rose Bay for which they paid ten million Australian buckaroos, an amount that Your Mama's currency conversion contraption shows converts to just about ten million American dollars. The house overlooks the fairways of the Royal Sydney Golf Club and is reported to have six bedrooms.

As far as we know Mister and Missus Crowe still own a $14,000,000 penthouse pad at Woolloomooloo's Finger Wharf in Sydney and an 800-ish acre rural spread in Nana Glen–about 350 miles north of Sydney–where the couple got hitched in a chapel he had built on the grounds.

photo: The Sydney Morning Herald

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