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Brendan Aiello

San Francisco’s Newest Green Moving Supply Company!

A few months back I hadZippGo Green Eco-Friendly Moving Boxes Logo the privilege of meeting Ash Sud, CEO of San Francisco’s newest eco-friendly moving supply company; ZippGo. After tweeting back a forth a few times I did a phone interview and had the privilege of hearing the vision behind this amazing new company.

The reason it took so long to post a finished article is because the real estate market has picked back up, so that means there are now more of you moving again. Next tine you’re ready to run to your local UPS store, U-Haul store, or self-storage retail store; think green and call ZippGo.

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David Tapper

THE END OF THE FEDERAL RESERVE MORTGAGE BACKED SECURITIES

 

THE END OF THE FEDERAL RESERVE MORTGAGE BACKED SECURITIES 
 
This is no joke, on Thursday, April first 2010, the Federal Reserve will pull the plug on its purchases of mortgage-backed securities. Since December 2008, the Fed has kept the mortgage-backed securities market going by buying $1.25 trillion in securities issued by Fannie Mae, Freddie Mac and Ginnie Mae that no one else wanted. The massive program has helped keep home loan interest rates low during the financial crisis.

The securities — comprised of residential mortgages bundled to diversify risk — have long fueled the housing market. But after the sub-prime meltdown, investors viewed mortgage securities as too risky.

Starting today, private investors have to step back up to the plate to buy up the $1.5 trillion in mortgage-backed securities likely to be produced this year. Will they? Or will the government withdrawal leave a vacuum in the housing market that could push interest rates higher, as some fear?

“We will be watching the end of the Fed program very closely,” said Mark Fogarty, editor of National Mortgage News. “We have heard predictions both ways — that the end of the program will cause a big bump in interest rates and that it will have little effect at all.”

So far, investors seem to be warming up to the idea of putting their money into mortgages again. Strict screening of borrowers and cautious lending under Fannie, Freddie and Ginnie means that mortgage pools are once again safe bets, and private investors are currently buying more than two-thirds of the securities. Prices of short-term securities are competitive with other investments, and have stabilized since the Fed started its buying program, a sign that investors now trust them.

And the federal wind-down has been orderly. It has signaled its intent to end the program, and has been steadily reducing its purchases since the beginning of the year.

As a result, the market has not been jolted, says Fogarty. Private bond investors seem to be picking up the slack for the Fed. Average interest rates for 30-year home loans have stayed under 5 percent, near its historic low point recorded at the end of last year, according to the Freddie Mac Primary Mortgage Market Survey for March 25.

“There has been a relatively liquid and stable market for Freddie Mac securities throughout the capital crisis,” says Freddie Mac spokesman Michael Cosgrove. “What’s important is that there is liquidity in the market and there have been investors that have been stepping up to buy.”

There’s still unfinished business to deal with, however. The Fed still has that $1.25 trillion in securities on its balance sheet – far more than it spent bailing out AIG and other credit insurers. One-fourth of all Fannie and Freddie securities are now the Fed’s property. (Fannie and Freddie themselves hold another 25 percent.) Some conservative economists have expressed concern that when the Fed tries to unload all that debt, it risks increasing inflation. (For a paper by Stanford University economist and monetary policy expert John B. Taylor on the topic, check out this pdf).

But overall it’s pretty hard to find the bad news here. Interest rates are likely to go up a quarter of a percent at most, much lower than many had predicted. The Fed has been generating tens of billions in income off these investments. And while inflation poses all kinds of problems for an economy, it also has a silver lining, because mortgage payments may end up taking less of a bite out of a household’s income

Dave “Tap” Tapper

 

Brendan Aiello

Want a “$3,000,000” house in SF for $150? Enter the SFRaffle.com Raffle!

Howdy Readers!Win 815 Alvarado Street in San Francisco

While watching some prime time TV last night, former San Francisco Willie Brown came on to announce that tickets are now available for San Francisco’s 2nd Annual Dream House Raffle! Raffle ticket  proceeds benefit YBCA (The Yerba Buena Center for The Arts).  Here is some general information; tickets $150 each – 1 out of a 100 chance of winning something. 1 in 40,000 (only 40,000 tickets sold) in winning the Noe Valley online casino Dream house. Other prizes include cash, cars, and vacations. The sooner you get your tickets the more chances you have to win due to three early bird raffles the first of which is this Friday, April 2nd 2010.

Now for the good stuff…

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David Tapper

Congrats to the Saints!

· Comments Off on Congrats to the Saints! 

Just finished watching the Superbowl and wanted to congratulate the Saints and the City of New Orleans. Both have been through so much and it’s nice to see the underdog win.

Cheers.

Tap

David Tapper

IS NOW A GOOD TIME TO BUY A PROPERTY? IT DEPENDS

 

Many buyers are deciding if “now” is a good time to purchase a home/condo/investment while property values have decreased, and rates are still very low.
 
There is also the tax credit for buyers, but that might not be available by the time you decide to purchase a property.
 
Trying to time the market is very difficult. By the time we all figure out that the real estate market has hit the bottom, it will be on an upswing.
 
Here is what you should consider. If you are thinking of purchasing a property and keeping it for 2-3 years and then selling, then you probably shouldn’t purchase at this time. I don’t feel it’s safe for you to make that big of an investment, in such a short period of time.
 
If you know you are going to keep your home for at least 5-7 years or more, I think you will be much better off and minimize the risk in making such a big Investment.
 
Interview 2-3 Realtors and see if they are a good fit for you. Getting a referral from a trusted friend or relative is a great way to find an agent, but it still has to be a good fit for you.
 
Ask the agent if they can provide you 5-6 past clients who you can all and ask questions about their representation.
 
The agent you decide to work with should be very knowledgeable. This includes knowing of the area where you are looking, networks well with other agents( a good agent talks with other top agents and hears about properties before they come on the market) has a very good grasp of the value of the properties, knows the contract inside and out, and isn’t scared to negotiate a good price for you. (If you are looking for a good deal, you cannot be scared to lose a home you like, emotion cost money).
 
Your agent should not try to sell you a home, like, oh look at the new kitchen, or the crown moldings. The home should sell itself. The agent also shouldn’t make you feel that you “have” to make an offer. This is a huge investment, the biggest in your lifetime and you don’t need any added pressure.
 
Making an offer is only part of that. You will have contingencies. A contingency simply means “subject to”. You will probably have 2 or 3 contingencies in your purchase contract. Subject to your loan and the pest and home inspections.
 
Your agent should treat you like a friend, or better yet a brother or sister. They should take you by the hand and walk you through the process and protect you as best they can.
 
The difference between a good agent and a great agent is their knowledge and their ability to use that knowledge to their advantage.
 
If you would like me to email you information for first time home buyers that will give you a step by step account of what goes on and when in a real estate transaction and what you will need to bring to your lender, email me or give me a call. There is no obligation whatsoever.
 
You can also visit my websites for any real estate related questions at www.DavidTapper.com or www.TeamTapper.com.
 
 
Thank you.
 
Dave

 

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