Fear of High Interest Rates?


Property owner have a constant quest to grab the lowest interest rate available, but do they succeed?

We all seem to struggle to predict where interests rates will be tomorrow, causing streets among homeowners. Fortunately, the US has seen some of the lowest interest rates ever seen in the history of mortgage loans.

To put things in perspective, today’s rates are comparable to rates available back in the mid-1960’s. That is more than 50 year! ago, when the cost of living was much lower than today.

To get my point across let’s go back to 1965 when the cost of gas was $.31 per gallon and $.05 for a first-class stamp. Today (2012) those are $4.25 and $.45 respectively. On the other hand, mortgage rates are now the same as in 1965.

Buyers often ask me about interest rates, should I lock now? should I wait to see if it drops more? My response is very clear, money is cheap, at least when we talk about mortgage loans. If buying a home is dependent on getting the ‘best rate’ one should understand that chasing a better interest rate can jeopardize the purchase of your home.

San Diego Tennis


Tennis is getting more popularity in San Diego, players of all ages and all skill level are inundation tennis courts throughout the County. Not long ago walk-ins were fortunate to get tennis court time in any tennis facility, even during weekends and holidays.

Today is a different story. Despite the more than 98 public courts located in the San Diego Metro area, when planning your tennis outing you must have to schedule and reserve a court in advance or be willing to write your name on the waiting list and wait.

Should I Buy a San Diego Short Sale?

Short Sales account for more than 50% of today’s inventory, and buyers don’t know what to expect from these listings.

When a Short Sale is listed 5% to 10% lower than a traditional or equity listings, buyers feel they can’t pass on buying at a discount. The reality check comes when they realize they don’t have the stomach to go trough the Short Sale process.

Should you submit an offer to a Short Sale listing? I personally think there are good opportunities in these listings, but only if the you understands the following:

  • Don’t expect a quick closing. The lender (lien holder) must approve your offer, this process may take between 3 to 6 months and at the end of a long wait the sale might not be approved.
  • Be ready to make concessions. As a buyer of a Short Sale you need to be ready to pay or contribute to pay for seller’s closing cost, reports, and inspections that are customarily a seller’s responsibility.
  • Patience, patience and patience! In a Short Sale there are many parties involved, and each with their own agenda. Be prepare and not surprised when the close of escrow date gets extend multiple times thru the process.

On top of this, even when the lien holder approves the sale, the seller might not like the terms of the approval and can cancel the transaction.

With a success rate at less than 60% any buyer will think twice before committing to a Short Sale. But, if you understand these points and don’t mind the commitment need from you, then you are a good candidate to buy a Short Sale.