Maryann Haggerty and Elizabeth Razzi
Washington Post Real Estate editor and columnist
Friday, September 19, 2008
1:00 PM
Welcome to Real Estate Live, an online discussion of the Washington area housing market with Post Real Estate editor Maryann Haggerty and columnist Elizabeth Razzi.
Maryann has been with The Post for 18 years and has served as real estate editor for the last five years. She's been a business and real estate editor and reporter for about 25 years. In all that time, she still hasn't figured out where you can find a lovely but inexpensive house in a charming neighborhood.
Razzi is the Local Address columnist for The Post's Sunday Real Estate section in Business. She's written about real estate and other personal finance topics for magazines and newspapers since the days of double-digit interest rates. She is also the author of two consumer-advice books, "The Fearless Home Buyer" (2006) and "The Fearless Home Seller" (2007).
Today they'll discuss the local housing market -- from condos and investment properties to contracts and mortgages.
For more on local real estate, visit washingtonpost.com's Real Estate section.
The transcript follows.
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Elizabeth Razzi: Hello, everyone! Well, this has been a week we'll tell the grandkids about someday. Let's talk about what got this whole financial turmoil started -- housing!
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Maryann Haggerty: Whew. What a week. Let's see if we can answer your questions -- but I'll warn you in advance: Some of this stuff has set my head spinning.
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WDC: I found a condo that I am interested in purchasing. It's in the 300K range. I have about 25 percent for a down payment. Last evening, I went to the ELoan site, which I used to purchase my previous condo, and found that they had no options for me. Is this a blip or a sign that I am going to have real trouble getting financing right now? Yikes!
Maryann Haggerty: No one knows. I would bet it's a blip -- the past couple days have been particularly rough. But I don't know your credit rating, etc. If I were you, I would try talking with a flesh-and-blood lending officer or mortgage broker. You can get your questions answered directly that way.
Elizabeth Razzi: No need to panic over disappointment from one Web site. Flesh and blood loan officers may indeed have something better to offer you.
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Moving to D.C.: Hello - we will be relocating to the Washington area very shortly, and we're curious about the Fort Washington area of Maryland. Even in today's market the prices seem a little too good. Is a neighborhood caught in a downward spiral, or a place to snap up a bargain? We have to young children, so we're buying for the long haul, but don't want to live in a neighborhood of vacant foreclosed on homes. Any help is appreciated.
Elizabeth Razzi: You don't say where you're moving from. DC prices are still a shock to most new arrivals, unless they're coming from NY, Boston, LA or San Francisco. And Fort Washington is a nice area. I absolutely encourage you to put off your purchase until you can walk/bicycle/drive your targeted neighborhoods and visit the schools in person. That's the best way to see if there are a lot of foreclosures and run-down properties. Renting for a while might not be a bad idea until you learn the area. Oh...and welcome to the DC area....
Maryann Haggerty: I was just playing with a foreclosure heat map, and it shows the Fort Washington Zip as not that badly off. I suspect that what you're seeing is that Fort Washington is one of the top-end neighborhoods in a county that is being hit by mortgage problems a bit later than the rest of the region. (The map is on the Federal Reserve's Web site, under research...)
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Alexandria, Va.: I find that many sellers are still in denial regarding the market we are in today. Having said that, do you think it is reasonable to offer 100k below asking price when negotiating a deal on a town house in the Alexandria area (outside of Route 1)?
Elizabeth Razzi: Only if you have good reason to believe, based on recent comparable sales, that the listing is overpriced by $100k. But do you really think such an unreasonable seller would jump on your offer?
Maryann Haggerty: It's tough to believe that a rational person would set a townhouse price more than $100,000 over market -- unless of course by a townhouse you mean a mansion in Old Town.
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Washington, D.C.: Dear Ms. Razzi:
Thanks for your excellent insight into real estate and your continued columns regarding the market for purchasers and sellers.
It's a breath of fresh air the way you can explain the short sale/REO transactions so that most people can understand them, and your last article about coaxing home buyers back to the market was cogent and helpful.
I do want to make sure you understand that as Realtors we can't tell DC buyers that they will be able to take the $5,000 tax credit as an incentive to purchase in the city. We can tell them they've had it in the past, and that the Congress usually plays brinkmanship with this, but we have to tell them they can't rely on the past when making a purchase decision.
It's too bad. That tax credit has done a great deal to stimulate the D.C. homeownership economy, not only in the city but in the entire region.
Thanks again for your clear explanations of the market and transactions.
Elizabeth Razzi: Aw, shucks, thanks. Actually, the continuation of that tax credit is about to be considered in the Senate any day now. As you said...it's all about brinksmanship...and ritual threats to shut down government each autumn.
Maryann Haggerty: Of course yo can't make promises about how Congress will act. That would be foolish! However, you CAN tell them to call Rep. Norton's office (the closest thing we have to a vote in Congress) and ask to be kept up to date. She has been the biggest backer of the tax credit and always seems willing to give out info on how it works.
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Washington, D.C.: Hello ladies, thank you for taking my question!
A friend and I visited Paris earlier this year and stayed in her boss's apartment. We really enjoyed ourselves and think fondly of purchasing our own apartment in Paris to visit and rent.
Besides the obvious pitfalls of two friends owning a property, what are some of the basic rules with regard to purchasing property overseas? Are there any Web sites that offer guidance for making such a purchase?
Elizabeth Razzi: The pitfalls are that things an American takes for granted (such as ways to hold title, brokerage commissions, availability of 30-year mortgages) can be surprisingly different abroad. Go on the major real estate brokerages' Websites (Coldwell Banker, Re/max, etc.) and start searching for agents with expertise in Paris. The French embassy might have suggestions for you as well.
Maryann Haggerty: And the rules are surprisingly diffrent country to country, not surprisingly. You want an agent who has experience over there, wherever that is -- and experience dealing with Americans, by the way
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Rockville, Md.: I thought we had done everything right. We bought a place we could afford, on one salary even. We planned to be there 5 years. That's supposed to be safe, right? We put a sizable deposit down. We bought closer in so we wouldn't be contributing to sprawl. We gave up square footage for walkability and living greener.
So we're on year 2 of the 5-year plan and prices stink. In the next 3 years, I don't think they are going to recover significantly. We may break even, we may come out with a little money when it's time to sell. How on earth are we going to afford a down payment on a new place?
We have -- or should I say had -- about $40k in an allegedly safe, very conservative money market account. I'm afraid to look at it now. But even if that all survived intact, $40k would not be enough in this area. Which is why we put it in a MM account, not a regular CD or savings, thinking a 5-year horizon for that wasn't exactly reckless, and we'd need the extra interest growth.
We have been saving, but now that we have a child, with daycare costs of over a thousand bucks a month, we don't have huge amounts to save every month. Some yes, but not another grand a month to put away over the next 36 months to make a dent in a down payment, plus closing costs, plus emergency fund. All the programs out there are for first-time buyers.
I just feel like an idiot for approaching 40 and having to save for a down payment all over again like I'm some kid starting out. I feel like we either have to put off having another child -- not going to happen at my age -- or stay in a 2-bedroom condo until we're 50. I know that is not the worse thing in the world but man, it's just a kick in the gut, you know? We didn't go crazy, we bought conservatively. Our cars are paid off. We have no credit card debt. We have excellent credit scores. It's not supposed to be so hard for us.
Are there any programs out there for 2nd time buyers who have seen their equity wiped out?
Maryann Haggerty: It feels depressing, but take a breath. You're on year 2 of the 5-year plan. The reason for the 5 years is that it allows time for things to go bad, and perhaps recover. You donlt know yet what your value will be in 3 years. You just don't. So: Enjoy yur walkable house. And if energy markts go nutso next, you'll be the one feeling smug.
Elizabeth Razzi: I know EXACTLY what you're talking about! And the very idea that money market accounts wouldn't be safe is so unthinkable... that the government has decided to insure them. Keep in mind, this past week has given us the most dramatic financial turmoil most of us have ever seen. And I hope we never see such drama again. But I am reassured that things are finally being set back on track. So, for now, keep in mind that you're only into year two of your five-year plan. Lots can happen over the next few years -- probably for the better. Maybe you'll have to add a year or two to your plan, who knows? For now, pat yourself on the back for being in a wonderful -- financially conservative -- position to ride this thing out.
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Washington, D.C.: In New York where I'm from, plenty of Realtors specialize in marketing rental properties. Here in D.C., it seems like most rentals are found on Craigslist and similar below-the-radar methods. I'm looking to rent out a property in the next couple of months, and aside from scanning neighborhood Craigslist listings (which only list the asking price, not the price the property ends up renting for), are there any good methods to determine going rates for rentals? Thanks!
Elizabeth Razzi: New York is COMPLETELY different from DC (and the rest of the country) when it comes to the rental market. In NY, rentals are brokered much the same way for-sale properties are. Not so here. Renting an apartment--or house--is more like buying a can of soup off the shelf at Safeway. There can be some negotiating on rents (or other elements of the deal, such as the length of the lease or amount of security deposit) but not a whole lot. So, to find out the going rate for rents...shop. Don't limit it to Craigslist, either.
Maryann Haggerty: I read it that you're the landlord. Those asking rents in Craigslist and The Post are de facto the rents the landlords get. This is a very low vacancy market. But at the same time, it's competitive -- don;t think yu can ask MORE than the competition.
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Reston, Va.: Hi, I wrote in last time about a not-smart seller of a house I was buying, who soured our deal b/c she did not want to make $1,000 of necessary repairs (code issues). Well, she's lowered her price and asking is now $5K less than I'd contracted for. Oh, and her listing says she "wants a contract NOW." And, we would have closed on Sept 15. I am happy with a house right across the street, which will be $50K less than I would have paid for hers, needs some work but it will be my captured equity and this is a long-term house.
Thanks for the chats and insights!
Elizabeth Razzi: Thanks for a report from the field! That seller is learning about current values the hard way.
Maryann Haggerty: These anecdotes are always interesting.
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Falls Church: I'm not sure if my eyes are playing tricks on me, but it looks like some homes that were on the market for months and even years are starting to sell. I live in Falls Church and two foreclosed houses in our neighborhood recently sold (the rock-bottom prices made me a little queasy, but at least they are not vacant anymore). It's not only the foreclosed houses that appear to be selling -- there are quite a few houses in our neighborhood that were on the market for years that are now under contract. I've also seen more "Sold" signs on front lawns in Arlington. Are we beginning to see a new trend in the region?
Elizabeth Razzi: If that's a trick, I like it. Thanks for the report.
Maryann Haggerty: Another anecdote. But as an aside: I do find that sometimes these mini-neighborhood ticks one way or the other aren't relaly indicating much, except that the right buyer found the right house at the right price. But as a second aside: When a market DOES hit bottom, one of the signs is an uptick in the number of sales, as willing buyers make their moves.
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Beltsville, Md.: Do you have any insight into how much adding a deck adds to the value of a townhome? I paid just under $5,000 for mine and am wondering if it was really necessary.
Elizabeth Razzi: I don't know the dollar amount. But it could make your home easier to sell than one that doesn't have a deck. Any appraisers out there want to chime in?
Maryann Haggerty: Here's the basic, especially with something as visible as a deck: Does everyone else in the neighborhood have one? Then you probably did OK by yourself.
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20171: Forgive my ignorance, but what does it mean to be "upside down"?
Elizabeth Razzi: No forgiveness needed. It means that you owe more on the loan than the house is worth right now. It happens when home prices decline and the borrower did not make a big downpayment. (Being upside down often happens with car loans, too.)
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Richmond: I wrote last week with ideas for the woman who bought the lot that won't perk. You said essentially "why bother, she only paid $4,000." I had NO idea she only paid $4,000, or I would have agreed with you to not throw good money after bad. But where's the loss? She'll have to sell it for $3,999 to get a dollar loss. And, can't resist saying, what did she expect for $4,000? Everyone in their right mind would say "$4,000 vacation lot? -- must not perk."
Elizabeth Razzi: I'm with you on that...if land is cheap, there's usually a very good reason.
Maryann Haggerty: Yeah, that was a question that hung over from the earlier week. Sometimes it gets confusing... Also, on that question, there were some chatters (don't recall whetehr we posted) who were admanant that land couldn't be sold if it doesn't perk. That may be in the case in urbanized areas, but not necessarily out in the ocuntry. (We're talking counties that don't have any zoning, in many cases.)
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D.C.: If your mortgage company has been billed out the Feds or another bank, but you still pay them your note are you obligated to pay them or should you contact the new note holder?
Elizabeth Razzi: Just keep sending your payments to the same address you use now. If the company servicing your mortgage (that is--collecting your payments and taking care of your escrow account) changes, they'll let you know, by letter sent through the U.S. mail.
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Vienna, Va.: We bought a house in Vienna in early June. We received a real estate bill for an underpayment of $350 in August. Our settlement agency told us that they used the 2007 tax rate on HUD1 because the 2008 rate was published in mid June after our settlement day. The agency contacted the seller and asked him to pay $300, but he refused. The agency insisted that it was not their fault because the rate was not published. However, the Fairfax board meeting made a decision on 2008 tax rate in May, and the new rate was available by contacting the tax office directly. The agency claimed that they had to be "neutral" and suggested us to sue the seller who has already moved out the area. We believe that the settlement agency should be more aggressive in pursuing seller. What can we do to solve this problem? Thank you for your help.
Elizabeth Razzi: I'd be more aggressive in pursuing the settlement agency for the $350. Do they stand behind their work? Are there any other surprises you can expect?
Maryann Haggerty: This may be one of those circumstances where a well-placed letter form a lawyer who is actually familiar with the practice on this could do wonders. However, that costs money... so don't let yourself get carried away and spend more on the lawyer than you can ever recover.
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Clifton, Va.: I have noticed on homesdatabase.com that the listings for my ZIP code 20124 are down 10 percent for the last 30 days and are about 40 percent off their highs. Not sure if this becasue folks have pulled their listings or houses selling -- I suspect houses selling by the amount of sold signs I see. I have also noticed an uptick in asking prices of about 10 percent.
Maryann Haggerty: Thanks. But that last 30 days was August, wasn't it? Are you seasonally adjusting your observations?
Elizabeth Razzi: Thanks for the observations. But an uptick in asking prices could simply reflect a couple of bigger/nicer homes coming on the market. Statistics only tell us so much.
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Forestville, Md.: I've been looking to buy my first home for the last year in the mid $200 range with pretty good credit in the 720s. I've been waiting for prices to fall but now with the credit crisis will I still be able to get a loan and will I have to put down more than 3 percent going through FHA?
Elizabeth Razzi: Well, as of Oct. 1, FHA will require down payments of at least 3.5 percent. Why speculate about your ability to get a loan? I always suggest that buyers get pre-approved by a lender before shopping homes. That way you know exactly how much you can afford to spend.
Maryann Haggerty: Yes, get that preapproval. Then if you do need to buff up your credit or savings, you will know what you need to do.
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Anonymous: Should I wait few more days to close on my home loan to see if interest rates go down more?
Elizabeth Razzi: Only if you can't find any other way to seek thrills. Seriously, this is one of the most volatile financial markets in history. If you see a good interest rate, grab it & lock it in.
Maryann Haggerty: We have a story in tomrorow's paper (and on the Web site now) about how to navigate the mortgage market in these tumultuous times. Let me see if we can find it...
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washingtonpost.com: Fickle Mortgage Market Demands Quick Decisions
Maryann Haggerty: There's the link...
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Rockville, again: Thank you for your reassurances. I guess it is kinda crazy to worry about 3 years down the road, but savings isn't going to happen overnight.
But your perspective really helped! So maybe 3 years isn't enough time, but is 5 years so bad? Nah. If Lucy & Ricky can do it, so can we.
Elizabeth Razzi: You're welcome!
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Washington, DC: I want to refinance my mortgage, but finding most will charge an application fee of approximately $500. Most appear to apply that fee as a credit during your first payment, but is there a good chance my application could be denied? My credit score is about 800 and my credit history is clean. With the way the market is today, I am concerned the lender could simply deny me and add to their bottom line by charging me this application fee?
Maryann Haggerty: Well, of course they could deny you--but remember, they make a LOT more money if they accept you...
Elizabeth Razzi: Very good point, Maryann. And the loan officer can tell you if she thinks your financial picture, especially your home equity, is good enough to swing a refinance.
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re: won't perk: Okay I give up. What does "perk" mean? I keep thinking of my mom's old coffee maker.
Maryann Haggerty: Exactly! It means percolate. As in, water will percolate through the earth in a way that allows the creation of a septic system, so the earth will clear the water. If the earth won;t drain properly, it won't perk. Not a problem for those of us who live in places with sewer systems, but a real concern out in the sticks.
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Madrid, Spain: Hi! Do you or any chatters happen to know how I could sell my apartment in Caracas and get my money in Miami. I am not speaking about anything illegal but about an American citizen who might be interested in buying it. Chavez won´t allow anyone to take money out of the country and there is a good friend of mine who lives in Miami and interested in buyng my apartment. Thanks.
Elizabeth Razzi: !hola! There are so many things that I don't know about this situation--and which you need to find out definitively. Are American citizens able to hold title to real estate in Venezuela, for example? I suggest you talk with a real estate broker in Miami that is experienced with the market in Venezuela. Some of the big names in real estate have brokerage offices all over the world, so you could find one with agents in Madrid, Miami and Caracas. Perhaps, if you can't actually transfer title in Venezuela,a lawyer can help you arrange some sort of a contract in which your American friend buys the right to buy the real estate. But as I said before -- I've got no expertise here.
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Bethesda, MD: How are things looking on condo sales in the waterfront area, where they just completed the new Nationals Stadium? I was reading that the sluggish economy is making it difficult to sell units that have recently been completed. Do you think this is going to make it tough to further develop that area?
Maryann Haggerty: Did you see the article in today's Metro section about how slowly things are moving down in that neighborhood? It seems to have hit smack-on up against the credit crisis, which is strangling credit lines for big developers. So I suspect development will slow for a while. Real estate developemnt is a very cyclical business.
I was over there the other day for the free opera simulcast at the stadium (how cool was THAT?) and there were thousands of people streaming through the streets of what is obviously a very changed neighborhood -- but still no place to socialize or spend money except inside the park.
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washingtonpost.com: Though Developers Built It, The Tenants Did Not Come
Maryann Haggerty: There's the link to the stadium neighborhood article.
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West Falls Church: What's your take on vague boundaries and unincorporated areas?
I currently live in what the post office designates as "Falls Church," with a 22043 ZIP code. I'm not in Falls Church City, but Falls Church in FFX County, and my kids go to McLean Schools and Dominion Electric considers us in McLean.
My street is right off Kirby Road.
Maryann Haggerty: Maryland and Virginia are full of 'em. The post office lines just don't match the incorporated lines. That's life. Your address is Falls Church, your tax bill isn't. (It can be a little weird if you're from one of the states where everything is incorporated, as Elizabeth and I are. Every inch of Pennsylvania fits inside some line!)
Elizabeth Razzi: You bet! I can tell you all about the differences between boroughs, townships and cities in Pennsylvania. And each of 'em belongs to a county. I've always been frustrated by that vagueness in Fairfax County. There's the Alexandria part that isn't really Alexandria, the Falls Church part that basically surrounds Falls Church, and the McLean part that somehow slides into Langley into Great Falls...I don't like it a bit. Give me some townships, please.
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Nags Head, N.C.: We own a vacation home here with a 5 yr, 5.25 ARM that will reset next year. We've been paying it down aggressively so that if, worst case, the rate goes up by 2 percent, our monthly payment will still be about the same as it is now. And if the rate stays more or less the same, our monthly payment will actually go down.
Given what we're doing, and we're not facing a huge scare either way, does it make sense to look for a 30-year fixed mortgage and refinance? I hate to start re-amortizing all over again, which a new 30 year mortgage would do.
Elizabeth Razzi: I like your plans for dealing with the worst-case scenario. That's the best way to deal with ARMs. If you'd like to lock in a fixed-rate, though, there's nothing dictating you have to go with a 30 year schedule. 15 or 20 years are possible. Talk with your lender.
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Washington, D.C.: Hello, first time home buyer here waiting for the right time to buy. How long until things get a bit settled so I can start looking?
Elizabeth Razzi: It doesn't cost anything to look. Honestly, this week was so unsettling, what with the threat that money market funds could lose value, stocks plunging, Treasury securities yielding practically nothing. It was as if the law of gravity or the speed of light were up for debate. Things seem to be settling down today...and the gov't folks will be working through the weekend figuring out the details of how to get financial markets back to stability...so people can save, borrow, trade and invest in a sane environment. As for finding the right time to make your first purchase, look inward to your own budget, the stability of your job, your credit and the availability of cash for your down payment. Shop for a mortgage first, then for a home. Good luck.
Maryann Haggerty: I really wish I knew when things would settle down.
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Craigslist is the only site I seem to find: that has lists of rental properties. Are there any magazines or other Web sites I can try? I tried washingtonpost.com but no luck.
Elizabeth Razzi: Seriously? At the top of the Washingtonpost.com home page, there's a blue tab that says "Rentals." I found a bunch there. Here's the link. And..the company publishes a newspaper, too.
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washingtonpost.com: Find a Rental, washingtonpost.com
Elizabeth Razzi: here you go...
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Oviedo, Fla.: To the panicked, regretful Rockville poster -- you are in the same boat many of us are -- all over the U.S. - who purchased in 2005 or 2006. I bought in 2005 in Boise and managed to sell 8 months later, breaking even (long story there.) now, in exurban Orlando, I am sitting in a house I'd be lucky to get $400k for -- and I paid $550 exactly two years ago. We love it, it is energy efficient and the high school for my kids is nationally ranked. I can deal. I am not flippant when I say -- ride it out. With your responsible financial profile -- cars paid, no other big debts -- just live your life, be glad you aren't in rush hour daily and wait a bit. I think you -- and I -- will be fine at the five-year mark. My 8th grader graduates then and like you I expect to sell. Other people will like the stuff you like -- close in, walkable -- and someone will buy from you. BTW -- a baby is close to a year 'in the making' -- or more -- and then can spend a year or two in your room, or in big sister's room. Keep baby with you or boot big sis to a futon in the living room. It will work out. Do not punt on a bigger family if you want one. A second child is a gift. Your housing worries will be faded memories by the time that second baby is riding a bike. Missing seeing that would be terrible. Don't let a housing bubble make this life choice seem like a no. Say yes.
Elizabeth Razzi: Advice on the family planning aspect....
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Fairfax, Va.: My husband and I are looking into foreclosures for investment purposes. How common is "shilling" at the auction? Is there any way to tell if someone is "shilling" for a bank or another financial institution that would benefit from driving up the price? Thanks.
Maryann Haggerty: I don't know -- usually the situation at these auctions is that there are no bids. At all.
Elizabeth Razzi: I've been to one of those big Convention center auctions. There was lots of bidding, but no way to know if there were real sales.
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Silver Spring, Md.: In purchasing a fixer upper, would lenders today approve a mortgage above the sale price to fix up the home if, even in its current condition, the house is appraised for more than the sale price?
Maryann Haggerty: There is an FHA program, a 203(k) loan, that is specifically meant for rehabs. Yes, there's paperwork--but there's money, too. Ask your lender about it. This is a link to the FHA's explanatin of the program. It's kind of dense reading, but may interest you: http://www.fhainfo.com/fha203k.htm
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Inadvertent Landlord in Florida: To the soon-to-be-landlord: you MUST insist on a full credit, employment, criminal, and previous-landlord reference check on your prospective tenant. I don't care how "nice" they seem, this is the best couple hundred bucks you'll spend if it keeps you from having to repair the place after your deadbeat evictee goes psycho on your condo.
Speaking of reports from the field...
Maryann Haggerty: Oh, yes!!! There's a book I like, "Every Landlord's Guide to Finding Great Tenants," that has detailed advice, checklists, etc.
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RE: Rockville, Md.: I thought we had done everything right.: I think you should just feel good that you're still better off than a lot of people. You're in a home you own that you can afford right now. Sometimes just concentrating on the good things in the present is better than worrying too much about the future.
Maryann Haggerty: Yes, that's the important thing, as far as I'm concerned. You can afford the roof over your head. So what you did WAS right.
I think that's something a lot of people lose track of, especilly when they focus on the short term.
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Takoma Park, Md.: I wrote in about a month or so ago giving you a field report about homes selling in Takoma Park. I mentioned that a number of the larger ones $800,000-$600,000 were selling well but there was one smaller bungalow in the low $400,000s that had been on the market for close to a year. Well, two weeks ago they had a contract pending sign and just yesterday it was changed to SOLD! I'm just so happy for this elderly couple. Now, I'll have to find out how much it eventually went for.
Maryann Haggerty: Thanks for the update. (I tend to make a note to myself to check these real prices on houses that catch my eye when the real numbers become available, then completely lose the notes...)
Elizabeth Razzi: Every home that leaves the inventory is good news these days.
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Washington, D.C.: I own a studio in a condo building in NW DC. While every studio unit in the building has a different layout, mine has a balcony and a tub, but others with a similar layout lack the balcony and have a shower instead. Does having a balcony and tub make a big difference in separating my unit from others when it comes time to sell?
Maryann Haggerty: I don't know how big a difference, but a difference, sure--unless of course the balcony look out over the dumpsters in the back alley.
Elizabeth Razzi: If a tub-lover hunts in your building, you're gold.
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Germantown, Md.: Are zero money down, interest only, ARMS and other subprime mortgages gone for good? I want to purchase a condo. I have excellent credit and a decent income but not enough of a down payment. I am a well informed consumer who is aware of the downside risk of these types of mortgages but if I am willing to take on the risk of an adjusting interest rate or pay the PMI will a lender have that type of loan available?
Maryann Haggerty: Zero-down is gone. If your credit is subprime, you will get a loan only with a lot of equity and strong verifiable income. There are still ARMs, and there's still PMI -- but only if you have 3.5% down (FHA) or 10% or whatever your loan program requires.
Remember, the risk isn't just to you. It's to the lender -- and, as we're being reminded, to everyone else along the line.
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Elizabeth Razzi: Thanks for an interesting chat, everyone. Here's wishing all of us a couple of weeks free from financial drama. Enjoy the weekend.
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Maryann Haggerty: It looks like we're about out of time. Thanks so much for joining us. Sorry we couldn't get to everyone. (And for those of you who maybe were wondering: Yes, we did get the usual PG-hating comments. We just didn't waste your time with them.)
On Saturday, the Real Estate section will have a story on living in group houses when you're no longer in your 20s, and another on how to navigate the mortgage market now.
Here's hoping for a calm weekend, when we get a chance to sit out in the yard/on the deck and enjoy the beautiful weather.
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