Seaport Real Estate Group Blog

Written by Robert H. Ruth

 Over the past few weeks, we have seen increased volatility in the stock market, and this has taken many people by surprise. The market has begun to behave in a less predictable manner and this has caught people off guard.  They are not accustomed to, or do not remember that markets ebb and flow and occasional volatility is all a part of investing.   

People also may have conveniently forgotten that the low interest rates we have seen since 2009 are not normal.  Those rates were engineered by the Federal Reserve to keep our economy functioning during the most severe recession since 1929.  Without the intervention of the Fed, our economy would not have recovered from the recession as quickly as it has, nor would there be

Written by Robert H. Ruth

Over the last 2 weeks we have been witnessing a significant change in the financial landscape in the United States. During this time we have seen the stock market come down from their recently achieved historic highs.  As the price of stocks has decreased, the value of investors’ portfolios, and 401K accounts, have been impacted.  

• Whether this is a short term or a long term phenomenon remains to be seen.
• The reality is that the rapid run up in market valuations since the election in 2016 occurred much faster than is normal, and therefore the likelihood of a correction had been anticipated for some time. 
• What had not been anticipated was the swiftness with which the selloff has occurred. 
• When this happens,

Written by Robert H. Ruth

Even though it is only the 3rd week of January, now is the perfect time to get positioned to buy a home. Here in New England the Spring market will heat up right after the Super Bowl with many property listings coming on. Make sure you are ready to take advantage of the market opportunities and do these 5 things so you can jump on a property you like and make the best offer.  Here are the 5 most important things you can do to prepare for house buying season:

Get your documentation organized

This includes the last 2 years of W2 forms, your 2 most recent paystubs, your most recent two months bank statements, and your most recent quarterly 401K or retirement account statement. If you are self- employed or earn

Written by Robert H. Ruth

The answer to that question is not completely known as of yet, but there are several areas of the final legislation that will affect people who own real estate.  This post will attempt to look at several areas in a bit more detail.  

• As with any bill before Congress, there were groups who tried to gain an advantage or defend the position they believed would be affected by the proposed legislation, and this bill was no different.
• Since I am not an accountant, I will not give any advice in that area in this posting. If you have specific tax questions you should consult a tax professional. 

The biggest changes in the law that will be felt by homeowners have to do with mortgage interest deductibility and

Written by Robert H. Ruth

Back in July I wrote a blog post in which I described what I believed were the 5 pillars supporting the United States housing market. I stated that just as pillars provide support and reinforcement to a beam or an arch and hold the supported structure in place, my 5 pillars were providing the structural support for the current housing market. These were the 5 Pillars of the Housing Market at that time:

•  Millennial Buyers
• Low Inventory Levels
• Historically Low Mortgage Rates
• Full Employment
• Price Appreciation

Now that we are in the middle of December, I thought it might be interesting to revisit these five pillars and see if they are still intact, weaker or stronger. Here then, is my current

Written by Robert H. Ruth

Last week, I reported that Fannie Mae and Freddie Mac were increasing their conforming agency loan limits in 2018 from $ 424,100 to $ 453,100, an increase of 6.8%. Accordingly, we have received an announcement from the Department of Housing and Urban Development that the Federal Housing Administration (FHA) will also increase their loan limits in 2018. While the new limits are not as high as Fannie Mae and Freddie Mac, they are higher than the limits in both states this year.  

While FHA loan limits do not change dramatically on a year over year basis, the new limits are a reflection of the increase in home prices in the US over the last 12 months. As reported by Kelsey Ramirez in Housing Wire, FHA is required by the

Written by Robert H. Ruth

On Tuesday, November 29th, the Federal Housing Finance Agency (FHFA), who has oversight over Fannie Mae and Freddie Mac, announced that they are increasing the conforming loan limits in 2018.  This is an important development for potential homebuyers who are looking to purchase next year and homeowners seeking to refinance. A borrower seeking a loan at or below this amount will be able to obtain a conventional mortgage, and loans amounts that are higher are known as Jumbo Mortgages.

Agency loans historically have rates that are .25 to .50 percent lower than Jumbo Mortgages.

Typically, agency backed loans comprise the largest share of home mortgages in the United States. The maximum conforming loan limit is determined

Written by Robert H. Ruth

Thanksgiving is like a fixed rate mortgage

I have to admit that my favorite Holiday is Thanksgiving.

I love the food: turkey and dressing …mashed potatoes slathered with gravy …mmm!

I love going for a run or a long walk in the late morning, and the smells that greet me when I come home are intoxicatingly good. Maybe the crisp, late fall air that I come in from enhances the aromas from the kitchen.  

I also love the traditions of Thanksgiving, knowing that the roasting pan we use belonged to my mother in law. I can’t help but think that it holds not only the flavors of the turkey, but the memories of all those Thanksgivings past, and I feel like she is still at the table with us, sharing her love and stories of

Written by Robert H. Ruth

VA Loans are one of the very best loans available in the marketplace, but unfortunately, they are not as well understood as they should be, so with Veterans Day fast approaching, I thought it would be nice to explain the basics behind the VA loan program.

 Basic Eligibility Guidelines 

You may be eligible for a VA Home Loan if you meet one or more of the following criteria:

• You served 90 consecutive days of service during wartime, OR
• You have served 181 days of service during peacetime, OR
• You have more than 6 years of service in the National Guard or Reserves, OR
• You are the spouse of a service member who died in the line of duty or as the result of a service-related disability.
• If you are no

Written by Robert H. Ruth

Sometimes, during the course of processing a loan application, new information becomes evident that was either not disclosed or not known at the time of loan application. While not always deal breakers, this new information can cause delays in the transaction, anxiety on the part of the homebuyers, and frustration for all the parties involved. Let’s look at a few of these items in greater detail:

Changes in Income to Qualify

Knowing the borrower’s income enables a lender to determine whether the borrower has the ability to repay the mortgage. Usually the income is reliable and fairly easy to determine, say a borrower who receives a salary and can easily document their earnings by providing W2’s and most recent