Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Mon, Jul 13 1992 Date: Mon, 13 Jul 92 05:08:08 EDT Message-ID: 07-13 0000 DECISIONLINE: Real Estate USA TODAY Update July 13, 1992 Source: USA TODAY:Gannett National Information Network MORTGAGE RATES HIT 19-YEAR LOW: Now may be the time to take advantage of low home mortgage rates. They hit a 19-year low last week, says the Federal Home Loan Mortgage Corp. Rates on a 30-year fixed mortgages averaged 8.13%, down from 8.29% a week before. The average had been about 8.5% just two weeks ago. "I don't think rates will get a lot lower than this," says Bob Van Order, Freddie Mac's chief economist. (For more, see special Rates package below.) ARMS ENJOY LOW RATES: The average rate on 30-year fixed-rate loans has fallen from about 8.5% to 8.1% in the past two weeks, but adjustable rate mortgages averaged 5.56% last week, down from 5.69% the previous week. Norwest Mortgage in Minneapolis offers an ARM with an initial rate of 4.5%. Bank of America in California offers an ARM with a 5 1:8% rate and Chase Home Mortgage charges 5 1:4%. REFINANCING TO ARMS PROMISING: Refinancing a $150,000 loan at 10% to a 5.5% adjustable rate mortgage would cut payments $852 - a savings of $5,568 the first year. Refinancing to 8% fixed-rate loan would mean savings of $2,580 a year. Of course, ARM rates can rise - mostly a maximum of two percentage points yearly to a lifetime maximum of six over the initial rate. FIRM TO MAKE INITIAL OFFERING: Kranzco Realty Trust, a Maryland real estate investment trust, has filed with the Securities and Exchanged Commission to make its first public stock offering. The company plans to raise about $116 million by selling five and a half million common shares. Smith Barney, Harris Upham; Oppenheimer; PaineWebber and Legg Mason Wood Walker will underwrite the sale at an expected $20 to $22 a share. NATIONAL FOREST TO ATTEMPT SALE: The Fremont National Forest in Oregon plans to try to sell timber on Augur Creek. The sale will include 6.4 million board feet on 622 acres. Environmentalists who blocked previous sales say they'll appeal again to preserve Eastern Oregon's biggest stand of old growth ponderosa pine. HURRICANE AWARENESS PROMOTED: The Insurance Information Institute is offering a free brochure detailing hurricane safety and insurance tips in time for hurricane season, which begins in June and ends in November. "Hurricane Awareness" is available by sending a self-addressed, stamped envelop to: Insurance Information Institute, Publications Service Center, 110 William Street, New York, N.Y., 10038. QUAKES DISPLACE CALIFORNIANS: Hundreds of Big Bear City, Calif., residents are living in tents and at a local Red Cross shelter as aftershocks from two major earthquakes that hit the area June 28 claim more homes. Federal, state and local disaster agencies are operating a center to provide disaster assistance. "Most every relief agency has a table here," says Bill Sanders of the federal emergency management agency. OHIO SUFFERS TORNADO DAMAGE: Tornadoes injured eight people and damaged homes and businesses in suburban Toledo, Ohio, Sunday. In Whitehouse, the roof was blown off Anthony Wayne High School. Fulton, Lucas, Ottawa and Wood counties were among those hit. HAWAII LOSING BEACHES: The Hawaiian island of Oahu has lost about nine miles of sandy beach since 1988, a fourth of which has eroded in the last 10-15 years, a study shows. Experts suspect that sea walls built to stop erosion are actually compounding the sand loss as the natural tidal flow is disrupted. RTC TO HOLD N.M. AUCTION: The Resolution Truts Corporation will auction 28 commercial properties in New Mexico July 22. The properties range from apartment buildings to an office condominium. The total value of the properties, to be available for inspection Monday and Thursday, is $3.8 million. SPECIAL PACKAGE ON RATES: RATES SPUR REFINANCING: Low interest rates mean savings for those looking to refinance. Refinancing a $150,000 30-year fixed mortgage at 10% to 8% will cut monthly payments to $1,101 from $1,316 - a savings of $2,580 yearly. But expect to pay 3% to 5% of the amount borrowed - $4,500 to $7,500 on a $150,000 mortgage - on points. A point is 1% of the loan paid as a fee. Most lenders include costs in the loan amount. RATES MAY STOP FALLING: HSH Associates, a New Jersey firm that tracks rates, reports 26% of all lenders it surveyed are offering rates lower than 8% on 30-year fixed mortgages. Weak economic signs have caused a drop in bond yields, which lenders use to set mortgage rates. But bond yields haven't budged since dropping at the beginning of last week. So mortgage rates may not continue to fall this week. MANY OFFER BELOW AVERAGE RATES: Countrywide Funding, a California-based lender with more than 100 offices nationwide, is offering 7 3:4% with three points. Fleet Norstar, based in Milwaukee, offers 7 3:4% and three and one half points in several states. NationsBank in Richmond, Va., also has 30-year fixed mortgages at 7 3:4% and three and one half points. First Chicago Bank is offering 7 3:4% and 3 points. (End of package.) Real Estate Editor: Christopher Goldthwaite. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM