Weekly Rate & Market Update 4-8-16
Reminder property taxes must be received by Monday! If you need more info see email I sent this morning or contact me!
Question of the week: How does a bond measure impact me as a homeowner?
Answer: It is that time of year in California, property taxes are due this week and in coming weeks/month many voters may see on their ballots propositions to assess property owners for municipal bonds to be issued for capital improvement projects.
At this time almost all California property tax bills have a section “VOTED INDEBTEDNESS” which lists the voter approved bond measures that are paid by you and other property owners. Each of the bonds passed by voters is listed with the assessment rate, then the dollar amount of the assessment for your parcel.
For instance currently in my area of Long Beach the tax bill has three Voted Indebtedness listings:
Metro Water District 0.003500
Community College 0.045945
Unified Schools 0.087635
For total assessments of 0.13708 percent of my assessed value, in dollar terms my neighbors and I are being assessed $137.08 per thousand dollars of assessed value. These assessments continue until the bonds pay off, which is usually provided as part of the measure on the ballot; i.e. this bond will be used to build new buildings and repair existing buildings for the school district, each parcel will be assessed at 0.025% of value for a period of 20 years.
When there is a bond measure on your ballot the description will tell you not only what the purpose of the bond and what it will fund, but also the cost to property owners.
As an addendum beyond the bond measures approved by voters, most property bills also have another section of charges that are “DIRECT ASSESSMENTS” that are imposed without direct voter consent but through public agencies or by elected officials. This taxes are not a percentage of assessed value but are flat dollar amounts due annually.
Most people when they receive their tax bill put it aside until they are ready to pay it and then just look at the coupon and send in the amount due. Take some time to review your bill to see just what you are paying for, what special assessments are being charged to you.
If you need help deciphering your tax bill or have any questions please do not hesitate to contact me.
If you are not receiving a tax bill because you are not yet a homeowner and would like to receive a tax bill next year for your own home call me!
Remember, with Dennis it’s not just a mortgage, it’s your complete financial picture.
Rates for Friday April 8, 2016: Not a lot of economic news this week. Last week while I was on vacation the Labor Department released employment data for March, and it was nice but not shattering. Rates were softening all last week and continue to move in that direction. We are back to our lowest point seen a few weeks ago. If your rate is near 4% or greater give me a call as we might be able to save you some money on your monthly payment.
FIXED RATE MORTGAGES AT COST OF 1.25 POINTS
30 year conforming 3.375% Down 0.125%
30 year high-balance conforming 3.625% Down 0.125%
30 year FHA 3.25% *** Flat
30 year FHA high-balance 3.25% *** Flat
Please note that these are base rates and adjustments may be added for condominiums, refinances, credit scores, loan to value, no impound account and period rate is locked. Rates are based on 20% down (3.5% for FHA) with 740 FICO score for purchase mortgages. ***FHA rates have no points and credit towards closing costs, recent rate change reduces credits
Back from our trip to Orlando and visiting the Universal Studios and Disney theme parks. Quite a bit of fun but can now say, “been there, done that…” What we found most interesting is the disparity between the Disney parks in Anaheim and Orlando, not for the attractions but for the friendliness and cleanliness. It is interesting how such a well-known brand built on customer service can such noticeable differences for their two main sites.
Glad to be home and looking forward to hearing from you for how I might be of service.
Have a great week,
Dennis
