30 Year Mortgage Rates 12/16/05

Here is a sample of some 30 year mortgage rates in Chicago:

Guaranteed Rate
6.054
LaSalle Bank - ABN AMRO
6.311
Chase Manhattan
6.331
Wells Fargo
6.368
Washington Mutual
6.434
CitiMortgage
6.464
First American Bank
6.484
Bank of America
6.539

Homes Sales to Drop Slightly in 2006

According to the National Association of Realtors, new home sales are expected to drop by 4.8% and existing home sales are expected to drop by 3.7% in 2006. This is coming off of a record year for both in 2005.

Despite slowing activity, the NAR says it expects the national median home price to continue to increase next year, as it has each year since reliable record keeping began in 1968. The U.S. median price for existing homes is expected to rise 6.1% next year to $221,400 after an estimated 12.7% surge this year. The median price for new homes is projected to increase 7.3% next year to $250,100 after rising 5.5% this year.

Interesting information - obviously those "average" home prices don't apply here in Chicago, but the trends should.

Home Improvement / Repair / Handyman Resource

Angie's List is a word of mouth network of consumers with real reviews from real customers of local service companies. There is a fee - it's about $6 a month, but it's a little cheaper if you pay for a year at a time. I think it's well worth it when you consider the potential $ and headache savings.

Here's the link to the site:
https://www.angieslist.com/

DESTINATION: SOUTH SIDE (From Chicago Tribune)

Chicago's South Side is attracting home shoppers and buyers these days from well beyond its borders.Prices in most neighborhoods have shown healthy increases, outstripping many more affluent city and suburban communities.Ironically, the effects of decades of disinvestment in some South Side neighborhoods has contributed to a revival of residential development: a good stock of high-quality buildings to rehab and plenty of vacant land to build on.

Click on the following link for full story (may require password - if so, it's free)

http://www.chicagotribune.com/classified/realestate/realestate/chi-0512110238dec11,0,2544442.story?coll=chi-classifiedrealestate-hed

Interest Rates - 12/2/05

Rates on 5 Year ARM Loan - Chicago

Guaranteed Rate 5.802
CitiMortgage 5.822
Manufacturers Bank 5.923
Chase Manhattan 5.953
First American Bank 5.979
Bank of America 6.020
LaSalle Bank 6.059
Washington Mutual 6.068
Wells Fargo 6.104

What Does a Home Inspector do?

A good home inspector will make a thorough and objective examination of the physical structure and systems of a home, from the roof to the foundations. If problems or symptoms are found, an inspector may recommend further evaluation.

Unfortunately, not all sellers and real estate agents are honest and some may conceal material defects of their property - others may just not know about them. But most homes, even brand-new (sometimes especially brand-new!) homes have problems. In my experience, the most common issues that an inspector will help uncover are:

-Improperly functioning furnace / Air conditioning systems
-Plumbing problems
-Stuck or improperly working windows
-Foundation issues
-Basement water
-Old / deteriorating roof
-Mold

Sometimes knowing about an issue can reduce the cost of the home or result in a credit from the seller at closing - other times, it may mean you decide not the buy the home. The purchase of a home is probably the largest single investment you will ever make. You should learn as much as you can about the condition of the property and the need for any major repairs before you buy, so that you can minimize unpleasant surprises and difficulties afterwards. Of course, a home inspection also points out the positive aspects of a home, as well as the maintenance that will be necessary to keep it in good shape. After the inspection, you will have a much clearer understanding of the property you are about to purchase.

Typically, a home inspection costs between $300-$500 and the fee should be negotiated upfront.