For all of those who are renting and may be considering buying a home..this article, from California Association of Realtors, has very good information in it. If you are looking for real estate in the Lake Oroville – Oroville area, there are some awesome deals right now making it more affordable to own your own home than to rent.
This year California housing market conditions make a strong and compelling case for homeownership. With prices still well below the historic highs of just a few years ago and attractive mortgage rates, qualified buyers have a unique opportunity to own their own home. As seen below, a rigorous analysis of renting versus buying hears this conclusion out. As shown in the following chart, the monthly housing costs (principle, interest, taxes, and insurance or PITI) associated with buying a median-priced home of $301,430 is $1,590 (Fourth Quarter 2010 median priced home in California). This assumes the buyer is making a 20 percent downpayment and financing with a 30-year fixed rate mortgage at 4.62 percent. In comparison, the median rent on a three-bedroom two-bath apartment with renter’s insurance in California is $1,810. That means buying a home would save the homeowner $220 per month when compared to renting and the homeowner would save over $2,600 a year.
In addition, existing tax laws allow homeowners to itemize and deduct the mortgage interest and property taxes from their taxable income. For example, compare the tax implications for two households both earning $63,430 a year, the minimum income required to purchase the statewide median-priced home of $301,430.* The household that purchases the home with a 20 percent downpayment and finances the mortgage at the current rate of 4.62 percent will receive a tax deduction of over $14,000 in the first year of ownership. The renter household will most likely utilize the IRS Standard deduction of $11,400, $2,600 less than their homeowner counterparts. The homebuyer reduces their total tax liability by $400 compared to the renter in the first year of ownership. Accounting for the out-of-pocket savings as well as the tax savings, the homebuyer saves over $3,000 in their first year of ownership.
The mortgage rate is a significant factor in determining just how much a homebuyer can afford. Today’s low mortgage rate environment tips the scale—for some—in favor of buying versus renting. For a home priced at $400,000, with a 20 percent downpayment and a 4 percent mortgage rate, the monthly PITI will be $1,990 for the homebuyer. The monthly PITI jumps to $2,180 at 5 percent and to $2,380 at 6 percent. For each one percentage point increase in the mortgage rate, the payment goes up by almost $200 under these assumptions. Even for a lower priced home at $200,000, the difference in the monthly payment is significant as each percentage point rise in the mortgage rate tacks on $100 to the monthly PITI.
Of course, there are many other socioeconomic benefits that homeownership brings to communities. And there are other costs associated with homeownership above and beyond the downpayment and monthly PITI. So as long as one has considered all of the costs and benefits of owning a home and is in the financial position to do so, there are some pretty compelling reasons to strive for the “American Dream.”
Other resources you may find useful for your clients:
NY Times Interactive Rent versus Buy calculator:
Bankrate.com’s questionnaire for potential homebuyers on whether or not to buy a home:
The National Association of REALTORS® resources for clients on renting versus buying:
1. Underlying assumptions for the Mortgage Interest Deduction and Property Tax (1 percent of the purchase price) deduction are based on the Traditional HAI Q4-2010 assumptions of: The prevailing median price in the 4th quarter 2010 (Median Price $301,430), effective FRM interest rate of 4.62%, a 20% downpayment, and a $241,144 loan amount.
2. Incomes are based on the underlying assumptions for the Traditional HAI. The same income is used for both Renters and Buyers and is assumed to be the Minimum Qualifying Income needed to purchase a median priced home in the 4th quarter 2010.
3. Tax rate based on 2010 IRS Schedule Y-1 Married Filing Jointly in 15% tax bracket (latest available from the IRS) assuming no changes over the 5 year horizon
4. Interest deduction based on the Traditional HAI Q4-2010 underlying effective FRM interest rate
of 4.62%, a 20% downpayment, and a $241,144 loan amount.
5. Property taxes are assumed to be constant over this 5 year analysis, thereby assuming the underlying market value remains unchanged. If the home value were to increase, under Proposition 13, the property tax assessment would increase at a rate of 2 percent per year. Along these same lines, income is also assumed to be constant over this 5 year analysis in order to keep the analysis simple and determine the basic 5 -year tax benefit of buying a home in 2010.
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When I am out showing real estate in Oroville, CA and my clients need hot or cold food or drink fast..I take them by Robertson’s Market located at 5291 Lower Wyandotte Road in Oroville, CA. This is is my favorite local Mom and Pop store but it is not owned by a Mom and Pop but rather Frank.
This has got to be the friendliest store in town. It offers all the usual
fare, then hot food that the local high school kids and workers gobble up as fast as it goes on, and a deli. Fresh sandwiches made at the time of order. Fresh meat cut daily. You can call and order meat packages. Your way. Absolute customer service.
You can get your money orders there, your newspapers, and a daily dose of politics if you really want. It seems that the vendors all have a smile on their face when they deliver there. I have seen customers walk in and they just know what that particular customer will request for the most part! Like magic, but really just very good service making the customers feel like they matter, like they are at home there. It has happened often that when you walk into the store, you will encounter folks standing around..not because of a long line but because everyone is chatting with each other. Regardless of your age, it seems as if the clerks know everyone’s name. Small town atmosphere, not just another face in the crowd. Personable and good natured folks taking care of you.
Open 7 days a week 6:30 a.m. to 11:00 p.m.
530-533-5226 Robertson’s Market
Oroville Self Serve, Oroville’s best, full service, newly renovated and expanded dismantler yard is owned and operated by Jerome, Joyce and Bear Johnson. This big dismantling yard is comprised of the old B&E and Nick’s located on Feather River Boulevard.
Oroville Self Serve boasts the biggest dismantler yard in Oroville, in addition to being the most orderly and as clean. They provide you with interchange searches. They will loan you the tools to remove your part(s) and a wheelbarrow to help cart it. You can buy batteries and tires. If you need an engine or transmission, they will locate one for you for purchase. You can purchase Anti-freeze for just a buck..best to bring your own container in case they are out. Think of all the money you save.
Oroville Self Serve offers motorcycles, cars big and small, trucks of all types, the occasional tractor and golf cart for sell. You just never know what will be offerred for sale until you go check it out. If you have a vehicle for sale, give them a call. If you need property cleaned up, a home trashed out, mobile homes removed, give them a call. They assist home owners or realtors with their needs of having properties in Oroville, all of Butte and Yuba County cleaned up.
Come on by and see the folks at Oroville Self Serve, you will be treated fairly and honestly and leave with a smile on your face. They truely are an ALL SERVICE DISMANTLING YARD. All of this along with years and years of experience and veracity make this the best dismantler yard in my opinion, all of Northern California.
COME ON DOWN to 2815 Feather River Boulevard, Monday – Saturday 8:00 a.m. to 5:00 p.m. sharp.
Plenty of Parking. Millions of Parts. Hundreds of Vehicles. Great Deals. Honesty. Great Service.
OROVILLE. For those of you who don’t know Oroville, I will be doing a blog fest introducing local businesses and what they offer. Oroville is comprised of alot of the “Mom and Pop” stores with some big corporations mixed in. A nice combination.
We have alot of hard-working and honest entrepreneurs in our midst bringing us unique offerings and/or services in a hometown atmosphere. That is not to say that we are left behind in the ages but rather a blend of old and new. Some business owners are from here and some have come to visit and ended up staying. No, not the Hotel California kind of staying but rather, a choice!
Whether I am going to town for a specific need or driving clients around town and out-lying areas to look at Oroville real estate, or just beebopping around taking photos of our gorgeous Oroville lake, Feather River, and other beautiful areas to post..it is just comfortable here.
Stay tuned, same bat channel, different day to learn about the great businesses and services Oroville has to offer.
Once you turn your documents into your lender, you should call them to make sure they have received the documents and that it is up-loaded into their system. If you are late on your mortgage payment, you will still receive telephone calls from basically, “line filler inners” who have no clue as to what is going on. They can’t really seem to give you any valuable information. You just have to go through the whole rendition of what is going on, what steps you have taken, etc. Sometimes, these people will request additional information from you. Just give it to them. You will also receive information from a loan processor. This is the person who you will have to answer to, the person who will be working on your loan modification. The person who when they ask for some documentation, you get it to them in a timely manner. The rule of thumb seems to be that you will have to up-date your hardship letter and financial information every 60 days. Obviously, this rule varies from lender to lender. I would contact my loan processor once a week, stay on top of the loan modification. You should receive a “trial” loan modification package within 2 months. Look it over, if agreeable, get the ratified paperwork back to the loan processor. Follow the directives. If they tell you to contact a credit counselor, do so and keep records of who you spoke to, from what company, date and time of discussion, and the confirmation number they will give you of said discussion. Your loan processor may or may not want that information, but you should keep it just in case as you won’t know which way your loan processor will go…better to be safe than sorry.
Answer your lender calls, keep current on your information, and contact your lender on a weekly basis. HOPEFULLY, you will be told that your loan modification has been approved. You will receive a package in the mail that may or may not need to be notarized. Follow the instructions, make a copy of the entire package for yourself and after you have sent the package off to your lender, make sure you contact them to find out if it has been received, then up-loaded into the system. You will want to continue to contact your lender to make sure it has gone to the proper loan officer and that it has gone “through”. Most lenders will NOT send you a ratifed contract, but here is a simple trick to make sure the loan modification is now in the system. Call your lender, go through the automated portion, you will hear your loan amount, your interest rate, your payment and your due date. If your loan has been finaled, you will hear the new terms you agreed to on the automated call. Also, when you get your new mortgage statement, it will reflect the new loan terms.
Hopefully, you are one of the borrowers that comes through this successfully!! Good Luck and remember, stay on top of the loan modification!! A successful loan modification will assist you in navigating through this challenging housing market.
I would love to see more successful loan modifications in the Oroville, CA area than foreclosures!!
You may have heard about the news that the government has asked the mortgage banks to work with homeowners who have been hit by the sluggish economy.
This comes in many different forms, but the one I will be discussing is the loan modification. You may have also heard good or bad things about the loan modifications. I know personally of two in the past few weeks that were approved for residents in the Oroville area, one through Bank of America and one through Wells Fargo Home Mortgage. If you find yourself in a financial bind, it does not hurt to contact Making Home Affordable and enquire as to your eligibility and the requirements.
If you decide to make that call or get on the website, have a good bead on what your income and expenses are, how much you owe on bills, credit cards, mortgage, and your household costs such as food, gas. Once you contact Making Homes Affordable and your lender, they will want all of this information over the phone. They will ask you what your intentions are for the property. You should receive a package in the next few days with directions and information as to what is expected of you, the borrower. It may seem intimidating or intrusive, I understand…but it is information necessary to obtaining the loan modification. You must be 100% honest and be able to back up your position. In addition to providing your financial information, you will be required to prepare and submit a “hardship” letter. This is a letter directed to the lender describing your specific hardship. This is your chance to put it all in writing, in your own words, asking for help in the form of a loan modification. I would state in this letter what your intentions are with your home, if this is a home you feel is truly your home and not just a place to hang your hat, so to speak..by all mean, express yourself!!! This is a more personal snapshot of you and not just your financial situation.
Make sure the financial sheet you fill out matches your bills. You will need to provide proof of income and some banks will require 3 most current bank statements. If your are an Independent Contractor, you will need to provide a Profit and Loss statement current to the date you send your loan modification package back.
To begin the Loan Modification process contact: “Making Home Affordable”:
You can go to the website at http://makinghomesaffordable.com , click on the link at the top of the page “Loan Modifications” or contact them by phone at 1-888-995-HOPE.
To Be Continued in Part Two.
Please come and view the video below..it is a fast paced tour of only a few of Oroville’s perks!!!
Oroville is a lovely place to live and play!!! Mother Nature has blessed us with many wonderful beauties. I hear over and over how the people here are nice. Neighbor helps neighbor. I love the small town atmosphere and it gets even better during the holidays, parades and special events. I took the photo in this article on the walking path past the Nature Center up the hill by the Fish Hatchery..if you turn around and look back the way you came..you feel as though you are transported in time..as if there were no other humans around and life slows to a heartbeat, you can breathe the fresh air, hear the water rushing over the fish dam and look out across the scenery to see the sparkling sun light dancing off the calmer water along the Feather River and the bridge looking as if it was part of the scenery all along. In certain months, you will see the salmon cresting the water, some launching themselves in the air. It is definately hard to describe the abundance of natural beauty you see here and the peace you feel as a spectator to it!!
First Friday Spirit of Christmas and Tree Lighting Ceremony: Entertainment will begin at 5 p.m. in front of Houser’s Music. Santa will arrive in a red Model A Truck. Carriage rides return this year. Cost is either one non-perishable item for a local charity or $2.00 per rider. Caroling at the Christmas tree that will be lit at 7:00 p.m.
Saturday, 12/4/10 – 10 a.m. to 5:00 p.m.:
Annual Christmas Craft Faire at the Municipal Auditorium. This event is sponsored by our own local radio station KRBS and FRRPD. Local artists and craftsmen and women display their wares for sale. A great way to relax and browse while getting to know your townspeople. I never seem to be able to leave without making one or more purchases!! We have such talented folks in our town!!
Sunday – 12/5/2010:
Although not in Oroville itself, this event needs to be spoken of: It is the historical societies last hike of 2010 will be the RIDGE WALKER DELIGHT excursion that will take hikers up a high ridge where they can gaze at all the major peaks in the Buttes. This is one of California’s longest views..if a clear day..one can see Mt. Diablo, Mt. Shasta, Mt. Konocti, and the Chrystal Range that rings Lake Tahoe. The guide, Daniel Barth, will point out the mountains unique biology, geology and history including the Maidu and Wintun Indian lore’s. Contact Daniel @ 846-3024.
The famous 15th ANNUAL PARADE OF LIGHTS in historical downtown Oroville. This a must see! Parade participants work very hard on their entrees. It is great to get downtown to watch this procession and visit the mom and pop stores that stay open just for this occasion. Hot chocolate, cider, etc on a cold night surrounded by your family and friends for this show makes for long lasting memories. The experience speaks for itself!! As having worked on a few of the Oroville Association of Realtor floats as well as being in the crowd..it is a lot of fun!! I applaud and appreciate all of the hard work the participants put into the parade and definitely appreciate the wonderful turnout of the townspeople to view this event.