[surveyor]

notes

I thought this was an interesting statement:

Most people who lose their homes to foreclosure become renters again. That’s happening so swiftly in Denver and other parts of Colorado that vacancy rates for apartments have dropped from more than 10% a few years ago to about 5% today, says Williams, the Colorado housing official. The nation’s apartment vacancy rate dropped from 6.9% in 2003 to 5.6% in 2007, according to research by Marcus & Millichap Real Estate Investment Services.

“We’re seeing a lot more stress on the rental market,” Williams says. “If more supply doesn’t come in, we’re going to see rents rise.”

That’s happening already: The average rent that landlords sought for an apartment in Denver in 2007 rose 3.9% over the previous year, according to Marcus & Millichap.

I’ve been seeing this symptom (the rising scarcity of rental units due to foreclosed homeowners becoming renters) manifest itself here modestly in San Diego.

[surveyor]

notes

I thought this was an interesting statement:

Most people who lose their homes to foreclosure become renters again. That’s happening so swiftly in Denver and other parts of Colorado that vacancy rates for apartments have dropped from more than 10% a few years ago to about 5% today, says Williams, the Colorado housing official. The nation’s apartment vacancy rate dropped from 6.9% in 2003 to 5.6% in 2007, according to research by Marcus & Millichap Real Estate Investment Services.

“We’re seeing a lot more stress on the rental market,” Williams says. “If more supply doesn’t come in, we’re going to see rents rise.”

That’s happening already: The average rent that landlords sought for an apartment in Denver in 2007 rose 3.9% over the previous year, according to Marcus & Millichap.

I’ve been seeing this symptom (the rising scarcity of rental units due to foreclosed homeowners becoming renters) manifest itself here modestly in San Diego.

[surveyor]

notes

I thought this was an interesting statement:

Most people who lose their homes to foreclosure become renters again. That’s happening so swiftly in Denver and other parts of Colorado that vacancy rates for apartments have dropped from more than 10% a few years ago to about 5% today, says Williams, the Colorado housing official. The nation’s apartment vacancy rate dropped from 6.9% in 2003 to 5.6% in 2007, according to research by Marcus & Millichap Real Estate Investment Services.

“We’re seeing a lot more stress on the rental market,” Williams says. “If more supply doesn’t come in, we’re going to see rents rise.”

That’s happening already: The average rent that landlords sought for an apartment in Denver in 2007 rose 3.9% over the previous year, according to Marcus & Millichap.

I’ve been seeing this symptom (the rising scarcity of rental units due to foreclosed homeowners becoming renters) manifest itself here modestly in San Diego.

[surveyor]

Tax bill

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[surveyor]

Tax bill

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[surveyor]

Tax bill

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[surveyor]

Tax bill

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[surveyor]

Tax bill

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[surveyor]

taxes!

For a $580k house, assuming you put 20% down, at an interest rate of about 6%, you should expect to pay about $39,934 in mortgage interest. Also, you could probably expect to pay around 1% in property taxes, so add $5,800 to that value as well.

So, you’re looking at around $45734 to offset against your salary.

If you want to calculate and run the numbers in Microsoft Excel, the formula is:

=PMT(0.06/12,12,580000*0.8,0,0)

Or of course run through any of the excellent mortgage interest calculators available on the Internet.

[surveyor]

taxes!

For a $580k house, assuming you put 20% down, at an interest rate of about 6%, you should expect to pay about $39,934 in mortgage interest. Also, you could probably expect to pay around 1% in property taxes, so add $5,800 to that value as well.

So, you’re looking at around $45734 to offset against your salary.

If you want to calculate and run the numbers in Microsoft Excel, the formula is:

=PMT(0.06/12,12,580000*0.8,0,0)

Or of course run through any of the excellent mortgage interest calculators available on the Internet.

[surveyor]

taxes!

For a $580k house, assuming you put 20% down, at an interest rate of about 6%, you should expect to pay about $39,934 in mortgage interest. Also, you could probably expect to pay around 1% in property taxes, so add $5,800 to that value as well.

So, you’re looking at around $45734 to offset against your salary.

If you want to calculate and run the numbers in Microsoft Excel, the formula is:

=PMT(0.06/12,12,580000*0.8,0,0)

Or of course run through any of the excellent mortgage interest calculators available on the Internet.

[surveyor]

taxes!

For a $580k house, assuming you put 20% down, at an interest rate of about 6%, you should expect to pay about $39,934 in mortgage interest. Also, you could probably expect to pay around 1% in property taxes, so add $5,800 to that value as well.

So, you’re looking at around $45734 to offset against your salary.

If you want to calculate and run the numbers in Microsoft Excel, the formula is:

=PMT(0.06/12,12,580000*0.8,0,0)

Or of course run through any of the excellent mortgage interest calculators available on the Internet.

[surveyor]

taxes!

For a $580k house, assuming you put 20% down, at an interest rate of about 6%, you should expect to pay about $39,934 in mortgage interest. Also, you could probably expect to pay around 1% in property taxes, so add $5,800 to that value as well.

So, you’re looking at around $45734 to offset against your salary.

If you want to calculate and run the numbers in Microsoft Excel, the formula is:

=PMT(0.06/12,12,580000*0.8,0,0)

Or of course run through any of the excellent mortgage interest calculators available on the Internet.

[surveyor]

resets

I have one property that will have its interest rate re-set in October of this year. If it were to re-set now, the interest rate would be 4.75% to 5.00% (the interest rate is currently at 4.5%). For me, the interest rate is based on the treasury one year rate (thank you mortgage broker!) instead of the LIBOR, which has been a higher rate. Also, because I used to live in this house, the interest rate would always re-set to something lower than what I can re-finance it to. So I’m not particularly hurt by the re-set. Even if interest rates go higher, my interest rate would still be substantially lower than the current rates.

Is anybody else in the same boat? I don’t know how many other people took interest rates like mine, but if the re-set doesn’t hurt as badly as most people on this board have anticipated, there might not be a flood of foreclosures in this next wave. I don’t know though maybe my situation is an anomaly.

Also, my HELOC rates are now below my first mortgage rates for my primary residence. How crazy is that?

[surveyor]

resets

I have one property that will have its interest rate re-set in October of this year. If it were to re-set now, the interest rate would be 4.75% to 5.00% (the interest rate is currently at 4.5%). For me, the interest rate is based on the treasury one year rate (thank you mortgage broker!) instead of the LIBOR, which has been a higher rate. Also, because I used to live in this house, the interest rate would always re-set to something lower than what I can re-finance it to. So I’m not particularly hurt by the re-set. Even if interest rates go higher, my interest rate would still be substantially lower than the current rates.

Is anybody else in the same boat? I don’t know how many other people took interest rates like mine, but if the re-set doesn’t hurt as badly as most people on this board have anticipated, there might not be a flood of foreclosures in this next wave. I don’t know though maybe my situation is an anomaly.

Also, my HELOC rates are now below my first mortgage rates for my primary residence. How crazy is that?

[Author]

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