10 Reasons People Decide to Buy a Home

Today, we have a special treat. Ann Douglas of DoorFly.com is our guest blogger explaining why most would prefer to own. Enjoy! – The KCM Crew Renting is a very frustrating way of life. The money you pay every month disappears, leaving you with few benefits other than a roof over your head. Compared to […]

What It Takes To Be A Mortgage Expert

In the choppy seas of mortgage finance, you need someone who can navigate the ever changing product guidelines, interest rate environment, and understands your individual circumstance. These professional mortgage originators are worth their weight in gold. Most people enter the maze of mortgages every five years or so, and the industry has evolved so much […]

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When Did ‘EXPERT’ Become a Dirty Word?

Our founder, Steve Harney, occasionally asks to do a personal post on what he sees as important  to our industry. Today is one of those days. Enjoy! – The KCM Crew The world around me is evolving rapidly. Sometimes I wonder if I can even keep up with all the advances and changes. One big […]

Real Estate: Like a Phoenix Rising from the Ashes

The real estate market has experienced difficulty over the last five years. From 2000-2006, house values climbed to unsustainable heights. Since then, we have seen much of this appreciation disappear. Now many  look at the housing market as dead and lying in the ashes of its previous glory. However, there is growing evidence that, just […]

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Loans Just Got MORE Expensive

The administration recently announced increases to the insurance premiums that the Federal Housing Administration (FHA) charges. FHA is the dominant loan program in the marketplace today.  The FHA has two types of Mortgage Insurance Premiums – Up Front Mortgage Insurance Premium (UFMIP)  and the  Monthly Mortgage Insurance Premium (MMIP). Let’s see how these impact a borrower’s ability to purchase. UFMIP […]

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Where Are Mortgage Costs Headed?

We have received many questions regarding the government’s plans for limiting federal support of the mortgage process. We realize that there is much confusion and concern surrounding this issue. However, The KCM Crew does not get involved in discussing the possibilities of future legislation nor are we in the business of lobbying for certain outcomes. This will be […]

“Own Thy Own Home”

The title of this blog is the advice given in a book of financial wisdom, The Richest Man in Babylon, written by George S. Clason in 1930. The book has become a classic having sold over 2 million copies in 26 languages. The advice is just as important today as it was when written almost a […]

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The Cost of Waiting for Prices to Fall

Many purchasers have been sitting on the sidelines waiting for home prices to hit bottom. They want to guarantee that they are purchasing at the best possible price. Like them, we also believe that prices still have some room to fall in most markets. However, we disagree that waiting is a good financial decision. The buyer should […]

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Uncertainty in Economy vs. Opportunity in Real Estate

There are many people sitting on the sidelines right now afraid to pull the trigger on a real estate purchase. Some are first time buyers; some are thinking of moving up to the home of their dreams; others are looking to purchase a vacation home or perhaps a future retirement home. Fear has prevented them […]

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Like Comparing Apples to Oranges

Over the next several months, there is going to be some confusion about how well the real estate market is doing. Some headlines are going to announce several consecutive months of increased sales. Other headlines are going to talk about a near total collapse in housing. Both headlines will be based on facts supplied by […]

Does Anyone Think These Things Through?

Let’s start with an acknowledgement…the mortgage industry got messed up in the boom times.  People will debate for years to come whose fault it was (loan officers, appraisers, the government, the secondary market, Wall Street, the Big Bad Wolf, Sasquatch and others). Today, we will ignore blame and look to how the Regulators are attempting […]

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This Is a Job for Superman, Not Clark Kent

We found this past weekend’s New York Times article, You Don’t Have To Pay It, very interesting reading. It was a piece on whether it makes sense to pay a 6% commission to your real estate agent in today’s market. In the article, there are sellers, buyers and even agents debating what is the right number that […]

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Does It Make Sense To Buy a Home?

The financial turmoil we have experienced over the last five years has definitely taken it’s toll. It has especially been a difficult time for real estate. Nationally, values have fallen over 25% and there may be more softening in prices to come. We realize that this has caused difficulty, and in some cases, heartbreak for […]

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Where Are Housing Prices Headed?

The National Association of Realtors (NAR) has been reporting great news recently. Last week’s Existing Home Sales Report and yesterday’s Pending Sales Report both showed consecutive months of increases in the number of homes sold. Finally, buyers are jumping off the fence and taking advantage of one of the most opportune times to purchase a […]

What The Crystal Ball Says About Rates

Predicting what will happen with interest rates is risky for a person’s credibility.  Last year at this time, I (and the KCM Crew) believed rates would climb after June and for very logical reasons: the end of the Fed’s purchase of mortgage-backed-securities (MBS) and the end of the Tax Credit. What we didn’t anticipate was […]

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Does Health Care Bill Contain 3.8% Home Sales Tax?

As the states and the new Congress renew the debate about the Administration’s Health Care Bill, we are again getting many questions about a possible 3.8% tax on home sales that some claim is in the bill. To answer these questions, we have decided to re-run a blog post we did last year. – The KCM […]

The Real American Idol – HOMEOWNERSHIP!

Simon Cowell would have to be considered congenial compared to the critics of real estate in the last few years. But like the popular TV show, where the ultimate winner is not chosen by a select few but instead by the vote of the nation, homeownership again has proven to be the choice of the people. […]

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Distressed Inventory to Step Out of the Shadows

We are beginning 2011 with much more positive news about real estate than we have had in several years. The pending sales numbers (houses going into contract) have been climbing for several months. Last month’s Existing Homes Sales Report from the National Association of Realtors showed an increase of over 12%. Demand definitely seems to […]

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Is the Housing Market Starting to Come Back?

It seems that the housing market is finally showing signs of a recovery. We are not suggesting that it will come roaring back and we will see 2006 numbers again. However, the National Association of Realtors released their December Existing Home Sales Report yesterday. The report showed a 12.3% increase in closed transactions over the month before. […]

What IS Risk Retention and How Will It Affect You?

The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law by President Barack Obama on July 21, 2010. The law’s far reaching impact will take years to understand, but as professionals we do know that Title IX (Risk Retention) will have a dramatic impact on consumers and the mortgage industry. What is Risk Retention? Risk Retention […]

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Most Americans Say It Is a Good Time to Buy a Home

We have been making two major points for several months. If you are selling a house, you must do it now AND if you are buying one, you must also do it now. This sounds crazy – but it is true. PRICE is the most important thing to a seller. With prices projected to fall […]

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You Need an EXPERT, Not Just an Agent

A major national television network called us a few weeks ago to do a live interview. To Steve Harney, our lead author, it was an honor to visit their Manhattan studios and meet Gerri Willis, the anchor of her own show – The Willis Report.  She and all the people on her staff were both extremely […]

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Buy or Rent? Play Chess, Not Checkers

A number of pundits are saying that now is NOT the time to buy a home. They look at how prices have fallen over the last four years and claim that investing in real estate is too risky. However, we must also look at the gamble one takes in not buying to determine which is […]

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Why Prices Will Soften in the 1st Half of 2011

The big question facing real estate in 2011 is which direction are home prices headed. We agree with most experts who believe prices will continue to soften for the first half of the year. Supply and demand will determine this. Let’s look at where real estate sits entering this year compared to the beginning of […]

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Will Foreclosures Be Erased?

A court in Massachusetts voided two bank foreclosures this past Friday. The decision has already created a ripple effect across the banking community. Will other courts also decide to void local foreclosures? Does this put an added burden on banks when they are trying to complete a foreclosure process? What will it mean to the […]