The price of a “no-cost” loan......

The New York Times

Some home buyers who may be concerned about paying high closing costs might be tempted by a “zero-cost” or “no-cost” loan option, which requires no cash outlay, but typically adds a half percentage point to the rate. However, some financial consultants say these loans tend to be most beneficial to buyers planning to have the loan for less than five years.
KEEP THIS IN MIND
• One of the primary differences between a no-cost loan and similar loans is that no-cost loans do not tack on closing costs to the balance, but instead increase the rate.
• With no-cost loans, third-party fees including the appraisal, credit report, title insurance, recording, and the use of a mortgage broker are paid by the lender. The fees, including the amount the broker is being paid, are disclosed on the closing statement.
• Home buyers who bypass a broker and work directly with a lender may encounter less transparency, as loan officers are not required to disclose the amount the bank is making on the loan.
• Borrowers weighing their loan options are advised to use a mortgage amortization calculator to compare the costs for a conventional loan compared with a no-cost loan. The Federal Reserve provides an amortization calculator on its Web site at www.federalreserve.gov.
Read the full story:
http://www.nytimes.com/2010/10/24/realestate/24mort.html?ref=realestate
Oct.

Fast Facts From The California Association Of Realtors

California median home price - July 09: $285,480 (Source: California Association of Realtors.)
California highest median home price by California Association Of Realtors region July 09: Santa Barbara So. Coast $885,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region July 09: High Desert $110,650 (Source: C.A.R.)Calif. First-time Buyer Affordability Index - Second Quarter 2009: 67 percent (Source: C.A.R.)Mortgage rates - week ending 8/27/09 30-yr. fixed: 5.14% Fees/points: 0.7% 15-yr. fixed: 4.58% Fees/points: 0.7% 1-yr. adjustable: 4.69% Fees/points: 0.6% (Source: Freddie Mac)

Home Energy Efficiency Rebates

REFRIGERATOR REBATES ARE BACK!!$100.00 combined rebate when you purchase a new Energy Star® refrigerator and recycle your old one.
The Los Angeles Department of Water and Power (LADWP) is continuing its Consumer Rebate Program (CRP) to promote energy-efficient products. The LADWP is providing cash rebates to make purchasing energy-efficient products EASY and AFFORDABLE.

EFFECTIVE JAN. 1, 2009, SINGLE-SPEED POOL PUMPS WILL NO LONGER QUALIFY FOR A REBATE. REBATES WILL ONLY BE OFFERED FOR POOL PUMPS AND MOTORS WITH MULTI-SPEED TECHNOLOGY. CUSTOMERS WILL RECEIVE A REBATE OF $300.
• Funds available on a first-come, first-served basis.
• All applications must be postmarked within 12 months of purchase date to be considered eligible for a rebate.
HOW TO APPLY
• Click here to download the CRP Application.