Department chair forum feb 4 th 2004
Download
1 / 12

Department Chair Forum - PowerPoint PPT Presentation


  • 352 Views
  • Updated On :

Department Chair Forum Feb. 4 th , 2004 Local Housing Trends & UC Mortgage Origination Program Inland Empire Trends IE is becoming a job center IE is no longer a bedroom community for Orange & LA Counties Houses in Inland Empire remain affordable because

Related searches for Department Chair Forum

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Department Chair Forum' - oshin


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Department chair forum feb 4 th 2004 l.jpg

Department Chair ForumFeb. 4th, 2004

Local Housing Trends &

UC Mortgage Origination Program


Inland empire trends l.jpg
Inland Empire Trends

  • IE is becoming a job center

  • IE is no longer a bedroom community for Orange & LA Counties

  • Houses in Inland Empire remain affordable because

    • Jobs are still being added in both Riverside/SB counties

    • Interest rates remain reasonably low

  • Expect home sales and prices in IE to remain solid at least through this spring and probably through the summer


First the good news nov 03 housing prices sales volume l.jpg
First, the Good News: Nov ‘03 Housing Prices / Sales Volume

  • 5,093 homes sold in Riverside County

    • Year to Year Increase of 19.7%

  • $268,000 median price Riverside County

    • Year to Year Increase of 17.5%

    • Compare median prices:

      • Orange County - $437,000

      • San Diego County - $393,000

      • Los Angeles County - $339,000

  • Riverside/San Bernardino Counties sales = 30.8% of all So. Calif. homes sold

    Source: California Association of Realtors (CAR)


Uc mortgage payments by county assume 5 down use car nov 03 median sales prices l.jpg
UC Mortgage Payments by County Volume(Assume: 5% down)(Use CAR Nov. ’03 Median Sales Prices)

  • Riverside $1192/month

  • LA $1500/month

  • San Diego $1739/month

  • Orange County $1934/month


Uc loan vs non uc loans 350 000 price 5 down l.jpg
UC Loan vs. Non-UC Loans $350,000 Price (5% down) Volume

  • Non-UC 80/15 loan

    • 80% Fixed 1st at 6.2% rate, 30 years

    • 15% Fixed 2nd at 7.0% rate, 15 years

    • $2368/month

      • Includes $182/month PMI

  • UC MOP 90/5 loan

    • 90% Variable MOP 1st at 3.8% rate, 30 years

    • 5% Fixed 2nd at 6.35% rate, 15 years

    • $1618/month

      • No PMI

    • $1428/month if 40 year MOP


The not so good news for local housing seller s market l.jpg
The Not-So-Good News for Local Housing: Seller’s Market Volume

A maturing market with patterns more typical of larger urban areas like LA or San Francisco—

  • Sales go quickly / scarce supply / top dollar prices

  • High Demand

    • LA & Orange County buyers are buying here due to price

    • Sometimes competing offers by buyers for one property

  • Buyers may renegotiate the price downward because

    • Inspection show many repairs are needed, or

    • Appraisal may not reach the sales price

      • Which can mean smaller loan & larger down payment

  • Realtors impose short deadlines for appraisal/loan approvals


3 8 uc mop rate variable how long will it last l.jpg
3.8% UC MOP Rate (Variable) – VolumeHow Long Will It Last?

  • We anticipate May rate adjustment to be lower than the current 3.8%

  • Rate will stabilize for rest of 2004

  • We’ll probably need several (3-4) years to get back to our usual 6.0% - 6.5% rate

  • Most Californians refinance every 5-7 years, so we expect the UC rate will be under 6% for at least 3 of those years

  • As commercial rates go up, fewer buyers will qualify for a loan, which means less competition for UC MOP buyers, who will qualify under a lower UC rate


Other mop benefits l.jpg
Other MOP Benefits Volume

  • No points & no upfront fees

  • No mortgage insurance (PMI)

  • No penalties to pay down principal

  • No margin (but .25% admin fee built into 3.8%)

  • Easy to qualify for a loan

  • Flexible repayment of 10-40 years

  • Change loan terms anytime

  • New online application


Faculty candidates l.jpg
Faculty Candidates Volume

  • I encourage all candidates to call me so that I can explain the benefits of the program

  • I can work through sample scenarios

  • I can pre-qualify people immediately if they have the official offer letter from the Chancellor / EVC

    • Helpful to new faculty who want to buy a house while visiting Riverside

    • UC name as a lender is prestigious

    • This pre-qualification can give the new faculty person an advantage over other competing buyers


Faculty candidates10 l.jpg
Faculty Candidates Volume

  • Can read about the MOP program on my website http://edres.ucr.edu/mort.html

    • Several non-UC lenders are listed

    • Comparison of UC vs. non-UC lender benefits

    • List of Riverside resources for new homebuyers

      • Utilities, realtors, school information, city directory

    • Background info on buying a house


Handout quarterly mop loan volume loan rate trends l.jpg
Handout – Quarterly MOP Loan Volume & Loan Rate Trends Volume

  • I’ve included a chart which compares rates (Fixed, ARM, MOP) from 1984 - 2003

  • Chart also shows UC program demand

    • When MOP rate is within 1% of the current market fixed rate, UC loan demand is low

    • When the difference between the MOP rate and the current market fixed rate is more than 1%, then UC loan demand is high

    • Notice that UC rate changes over time are more gradual than either the fixed or ARM rate changes


Call me anytime l.jpg
Call me anytime.. Volume

  • Mike Wicke

  • 909-787-3323

  • [email protected]


ad