Adding Value by Dennis O'Hagan

Homeownership Matters to State of the Union...

RISMEDIA, Friday, January 27, 2012— National Association of REALTORS® President Moe Veissi made the following statement, regarding President Obama’s recent State of the Union address. "The National Association of REALTORS® commends President Obama for his remarks in support of homeowners and the struggling housing market during tonight's State of the Union address. As leading advocates for homeownership, REALTORS® know that restoring the health of the housing market is the only way to achieve a broader economic recovery. "REALTORS® stand ready to help Congress and the administration implement Obama's proposal to significantly reduce monthly mortgage payments by streamlining the refinancing process. "But beyond that, we must make housing a national public policy priority. REALTORS® believe that more must be done to stem the rising inventory of foreclosed homes and address the lack of available and affordable mortgage financing, which is inhibiting a meaningful housing market recovery. "Our families, communities, the housing market and economy all suffer when people lose their home to foreclosure. REALTORS® are calling upon the Obama administration, Congress and lenders to help keep more people in their homes by taking more aggressive steps to modify loans and help homeowners significantly reduce their monthly mortgage payments. " REALTORS® also urge the government and lenders to streamline the often time-consuming and inefficient short sales process and to quickly approve reasonable offers when a family is absolutely unable to keep their home. Keeping people in their homes and reducing foreclosures will help minimize the negative impact of distressed properties on home values and neighborhoods. "Expanding financing opportunities could also help reduce excess inventories of distressed properties. Increased fees and higher down payments are making it harder for many creditworthy homebuyers and investors to obtain financing, thwarting the sale of distressed properties and prolonging the impact those homes have on local markets. "While we are beginning to see early signs of stabilization in the housing market, NAR calls on Congress and the Obama administration to come together and make housing a priority issue. In this vein, we urge the White House to host a national housing summit to encourage a broad discussion among stakeholders to help formulate and advance policies that move the country toward a real housing and economic recovery." For more information, visit www.realtor.org.

Fee Increase to Impact Home Loans...

In December 2011, Congress reached a last-minute deal to fund the payroll tax cut extension. The payroll tax extension will provide a 2% tax reduction for individuals earning up to $106,800, so the tax extension will be very helpful for many Americans who are struggling during these tough economic times. But like so many things in our tangled economy, there's a flip side. In this case, the tax cut deal has a rippling effect that will impact the mortgage world.

Here's what's happening and what it means to home loan rates:

What is happening and why? To put it bluntly, the passage of the payroll tax cut extension is being funded via a mandate to Fannie Mae and Freddie Mac (the nation's largest providers of mortgage money) to increase their guarantee fees or "g-fee's" by at least 10 basis points on the rate. So rather than giving a par rate of 4.00%, for example, the par rate is now increased by at least 10 basis points, or approximately 4.10%. But as you probably know...home loan rates are priced and offered in .125% increments, so this will most likely impact the consumer by .125% in rate. Whether you agree or not on the politics behind this cost being passed along to folks who are taking out mortgages, the Congressional Budget Office recently estimated that the increase will ultimately pay for about $35.7 Billion of the cost of the payroll tax extension.

What exactly is this "g-fee"? The guarantee fee or "g-fee" is an amount charged by mortgage-backed securities (MBS) providers, like Freddie Mac and Fannie Mae, to help protect against credit-related losses in the overall mortgage portfolio. In other words, it acts a lot like insurance and helps lower the overall risk...which means home loans can be offered at terrific interest rates to borrowers that have good – but not perfect – credit.

What exactly is the impact of the rate increase? For example, for a $200,000 home loan, the increased g-fee (assuming a .125% increase in rate) would equate to $250 more per year in interest, or $7,500 more over 30 years. Someone buying or refinancing a home can certainly choose to buy down the cost with cash up front – but most folks will not do this.

Who will this impact? The change will impact all new borrowers of Fannie Mae and Freddie Mac loans. The bill will also impact Federal Housing Administration (FHA) loans by increasing the annual mortgage insurance premium that borrowers pay by one-tenth of a percent.

When will it start? Officially, the increase to guarantee fees will begin on April 1, 2012. However, the increase is already starting to be seen in rate sheets right now, since home loans being originated now will likely not be closed, pooled and securitized until April...and therefore will need the increased g-fee priced in earlier.

How long will this be in effect? The increase will be effective through October 1, 2021.

The bottom line is that the g-fees will be going up...and this will impact homebuyers looking to obtain a home loan through Fannie Mae, Freddie Mac and FHA.

The good news is that home loan rates are still at historic lows right now, and it's a great time to purchase a new home or refinance. If you or anyone you know has any questions, please call or email!

Sincerely,


Craig Wilbur
Hometrust Mortgage
craig@craigwilbur.com

The Stress of Buying a New Home...

Buying a home can be one of the more stressful experiences in life. It is often a long and sometimes intimidating process, lasting up to six months on average. The Real Estate market is huge and changes often with swings up and down. It's easy to become overwhelmed by how much is ahead of you and how little you know about the process. But with the right attitude, it can also be an enjoyable, even exhilarating experience.

Here are some tips to make your home-buying experience positive and less stressful.

Preparing to Move

Organize

Be prepared by becoming knowledgeable. Educate yourself on each step of the process so you know what to expect. Get organized ahead of time. Keep a notebook and calendar dedicated exclusively to the home-buying process. An Excel spreadsheet is a great way to organize and compare all the information you gather, such as the homes you are interested in, potential lenders, and different mortgage rates.

Finances

Assess your financial situation before you begin looking for a home. Come up with a solid number for the maximum amount you can afford, as well as a target amount you would like to spend, ahead of time. Overestimate the closing costs (interest rates can change). This is also a good time to begin gathering the financial documents that you'll need when applying for a loan.

Keep your finances in order until you close on your new home, which could be as long as six months away. Do whatever you can to help improve your credit score; don't acquire new debt (no major purchases, new loans or new credit cards), reduce or eliminate any current debt, and pay your bills on time. It is never too early to begin improving your credit and is best started as early as two years prior to purchasing a home.

Find an Agent

Find a real estate agent who you trust and connect with on a personal level. Communication in this relationship is fundamental. Some questions to ask yourself: Are they good at translating industry jargon into terms you can easily understand? Do they communicate well using media that works for you, such as email, cell phone, or video conferencing? Credentials are a big factor too. Choose an agent with proven expertise in both the type of property and property location that interests you.

Finding a Home

"Think from the end," is a common phrase heard in human potential circles. See yourself in your new home. How does it make you feel? What does it look like? Keep a journal to record these thoughts. Be as descriptive as possible. This can help to not only narrow down precisely what you are looking for in a home, but it can also help anchor you emotionally during a potentially unstable time by keeping the big picture in mind.

While dreaming of your new home is an important first step, keeping your expectations in check is equally important. Keep in mind that the criteria of what you are looking for in a home will change along the way. No house is perfect. Be willing to compromise on some of your requirements. Make a list of your top priorities (must-have's) and lower priorities (nice-to-have's). This will help identify areas where you can be more flexible.

Once you've found a home you like and know what you can work with financially, don't let the latest market news influence your decision to move forward. If you start second-guessing the housing market or interest rates, you risk losing the home to another buyer. Choose a home because you love it. Listen to your heart.

Waiting for Acceptance

Once you've made an offer on a new home, try to relax and engage in your routine activities while you wait to hear whether the seller accepts your offer. During this waiting period, there are many potential stressors that could send your mind reeling. What if the seller rejects your offer, or comes back with an unreasonable counter-offer? Was your offer too little, or too much? Be prepared to make many offers before one is accepted. Keep in mind, even if your offer is accepted, there's no guarantee it will close. Try to remain detached from the outcome until after the property has been inspected and you've been approved for a mortgage.

Inspection Period

Hire experienced and certified inspectors to conduct a thorough inspection of the property including possible insect damage. Be present during inspection, so you can ask questions regarding the home and become knowledgeable about any issues that are discovered.

Getting approved for a Loan

Taking out a loan can be the most stressful part of the home-buying process. Transactions typically take at least a month to complete. Having your financial situation scrutinized can be an uncomfortable process. Worrying about whether you will be approved is an added stressor. It helps to gather your financial records (credit card balances/statements, bank statements, investment statements) prior to meeting with a loan officer. Obtain a copy of your credit report; you're entitled by law to one free credit report per year. A copy of your 4506 T form (IRS Tax Return Transcript), which includes a summary of your tax information, is also available online for download.

Don't lose sight of the fact that you have options when choosing a lender and a mortgage. This can help restore a sense of control when so much of the home-buying process is out of your hands. Talk to several lenders; don't just go for the first lender you talk to. Consult with your Real Estate agent to help you through the process of securing a mortgage. Don't hesitate to ask questions until you understand the answer.

After Close, Moving In

Congratulations! You've successfully negotiated yourself through the complex maze that is home-buying and now find yourself at last kicking back on your couch with your favorite drink in the home of your dreams.

A Little GOOD NEWS: December Existing-Home Sales Show Uptrend...

RISMEDIA, Monday, January 23, 2012— Existing-home sales continued on an uptrend in December, rising for three consecutive months and remaining above a year ago, according to the National Association of REALTORS®.

The latest monthly data shows total existing-home sales rose 5.0 percent to a seasonally adjusted annual rate of 4.61 million in December from a downwardly revised 4.39 million in November, and are 3.6 percent higher than the 4.45 million-unit level in December 2010. The estimates are based on completed transactions from multiple listing services that include single-family homes, townhomes, condominiums and co-ops.

Lawrence Yun, NAR chief economist, said these are early signs of what may be a sustained recovery. "The pattern of home sales in recent months demonstrates a market in recovery," he said. "Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market."

For all of 2011, existing-home sales rose 1.7 percent to 4.26 million from 4.19 million in 2010.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to another record low of 3.96 percent in December from 3.99 percent in November; the rate was 4.71 percent in December 2010; recordkeeping began in 1971.

NAR President Moe Veissi said more buyers are expected to take advantage of market conditions this year. "The American dream of homeownership is alive and well. We have a large pent-up demand, and household formation is likely to return to normal as the job market steadily improves," he said. "More buyers coming into the market mean additional benefits for the overall economy. When people buy homes, they stimulate a lot of related goods and services."

Total housing inventory at the end of December dropped 9.2 percent to 2.38 million existing homes available for sale, which represents a 6.2-month supply at the current sales pace, down from a 7.2-month supply in November.

Available inventory has trended down since setting a record of 4.04 million in July 2007, and is at the lowest level since March 2005 when there were 2.30 million homes on the market.

"The inventory supply suggests many markets will see prices stabilize or grow moderately in the near future," Yun said.

Foreclosures sold for an average discount of 22 percent in December, up from 20 percent a year ago, while short sales closed 13 percent below market value compared with a 16 percent discount in December 2010.

The national median existing-home price for all housing types was $164,500 in December, which is 2.5 percent below December 2010. Distressed homes -- foreclosures and short sales—accounted for 32 percent of sales in December (19 percent were foreclosures and 13 percent were short sales), up from 29 percent in November; they were 36 percent in December 2010.

All-cash sales accounted for 31 percent of purchases in December, up from 28 percent in November and 29 percent in December 2010. Investors account for the bulk of cash transactions.

Investors purchased 21 percent of homes in December, up from 19 percent in November and 20 percent in December 2010. First-time buyers fell to 31 percent of transactions in December from 35 percent in November; they were 33 percent in December 2010.

Contract failures were reported by 33 percent of NAR members in December, unchanged from November; they were 9 percent in December 2010. Although closed sales are holding up better than this finding would suggest, contract cancellations are caused largely by declined mortgage applications and failures in loan underwriting from appraised values coming in below the negotiated price.

Single-family home sales increased 4.6 percent to a seasonally adjusted annual rate of 4.11 million in December from 3.93 million in November, and are 4.3 percent higher than the 3.94 million-unit pace a year ago. The median existing single-family home price was $165,100 in December, which is 2.5 percent below December 2010.

Existing condominium and co-op sales rose 8.7 percent to a seasonally adjusted annual rate of 500,000 in December from 460,000 in November but are 2.0 percent below the 510,000-unit level in December 2010. The median existing condo price was $160,000 in December, down 3.0 percent from a year ago.

Regionally, existing-home sales in the Northeast jumped 10.7 percent to an annual pace of 620,000 in December and are 3.3 percent above a year ago. The median price in the Northeast was $231,300, which is 2.7 percent below December 2010.

Existing-home sales in the Midwest rose 8.3 percent in December to a level of 1.04 million and are 9.5 percent above December 2010. The median price in the Midwest was $129,100, down 7.9 percent from a year ago.

In the South, existing-home sales increased 2.9 percent to an annual level of 1.76 million in December and are 3.5 percent above a year ago. The median price in the South was $146,900, down 1.1 percent from December 2010.

Existing-home sales in the West rose 2.6 percent to an annual pace of 1.19 million in December but are 0.8 percent below December 2010. The median price in the West was $205,200, up 0.3 percent from a year ago.

For more information, visit www.realtor.org.

Winter Maintenance Tips...

Winter is the season we spend the most time indoors and at home. Take care of your biggest investment, your family and your wallet this winter by following these quick tips on home maintenance and safety.

Take Care of Your Heating System
Your heating system runs constantly throughout the cold winter months so it is important to keep it well-maintained to prevent needed repairs and also keep your system running efficiently. 

• Remember to change out your HVAC filter each month. Replacing HVAC filters is crucial to keeping your air clean. Filters clean out pollutants such as molds, skin cells and allergens.
• Check the gas connections, gas pressure, burner combustion and heat exchanger to ensure safety and efficiency. Improper connections are a fire hazard and a dirty burner or cracked heat exchanger causes poor burner operation.

Conserve Precious Heat
Proper insulation of your home is critical to ensure proper heating and conservation of heat to make the most of your heating costs this winter.

• Inspect the insulation in your attic and crawlspaces. Warm air rises and leaves the house through the roof, so focus your insulation efforts on your ceilings and attics. Areas around recessed lights, the attic hatch and plumbing vents should be sealed as they commonly are the main issue in allowing warm air to escape your home.
• Storm windows help heat stay in and cold stay out. If you're on a tight budget and do not already have storm windows, pick up an inexpensive plastic film sheet kit from your local hardware store. These only last one season, but help with insulation efforts. Weather-strip all doors that lead to cold or outside areas.
• Close curtains or shades at night and keep them open during the day, especially in rooms that receive a lot of light and sun. Re-arranging your furniture like couches, chairs, tables and beds away from any exterior walls makes your home seem warmer by putting some distance between you and the cold air. This also leaves room for the air to move around better, making it warmer.  

Be Safe
The cold and snow of winter can create hazardous conditions. Take a moment to plan ahead and prepare your home and family for the worst of what winter can bring.

• Stock up on sidewalk salt and sand (for better traction) and apply generously to all walkways and driveways at the first sign of slick conditions.
• Check your snow shovels for cracks or other damage. Have a backup shovel just in case. When shoveling, push the snow in front of you, if possible. If you need to lift a shovel-full of snow, pick up small amounts and lift with your legs, not your back. Do not toss snow over your shoulder or off to the side.

Outdoor Maintenance
Outdoor home care does not end when winter comes. Even in the cold weather months, your yard still needs maintenance to keep your home safe. 

• Make sure tree and shrub branches are well away from the house and windows. Ice can cause branches to break and damage your home.
• Walk around the outside of your house and do a scan. Check the foundation for small cracks or openings where mice or other pests can sneak in. Seal up any possible entrances to keep these critters out. While outside, clear any snow accumulation off gas meters and away from basement windows and your dryer exhaust vents.

BIG THANKS to Home Warranty of America (HWA) for providing us with this great information.  To learn more about HWA here is their contact information:

Home Warranty of America
P.O. Box 850, Lincolnshire, IL 60069-0850.
Tel: 888-492-7359 or 888-325-5143 (CA only).
Fax: 888-492-7360
www.hwaHomeWarranty.com 

 

 

USDA Program Makes "Rural" Homes More Accessible...

One of the biggest difficulties many first-time homebuyers face is a lack of down payment and the necessary funds for closing costs. However, even with the widespread availability of "no-money-down programs" evaporating in the credit crisis, one national no-down payment program still remains: USDA Rural Development home loans.

Guaranteed by the USDA (United States Department of Agriculture), this program might make you think that homebuyers have to buy farmland or live "in the country" to qualify, but this is often not the case. In fact, you might be surprised to see just how many neighborhoods actually do qualify as rural development areas. For this program, the term "rural" really applies to those areas with a lower population or fewer homes, not necessarily those areas and neighborhoods far outside of the city.

Other than the location of the property homebuyers are seeking to buy, there is one other limitation to this valuable program that homebuyers must consider: their income. Luckily, however, these numbers have recently increased to allow more potential buyers to take advantage of this special program. For households in non-high cost areas, with up to four people, the income limit can be over $70,000 (every area will be different). In households where 5-8 people reside, the income limitation can be over $90,000 (again, every area will be different). These income limitations are guidelines and, in some cases, may be exceeded.

It's important to note that buyers don't have to be first-timers to qualify for a USDA loan. However, in most cases they cannot own another property at the time of closing a USDA mortgage.

To find out more about USDA loans, give us a call. For more information and income limits, go to http://eligibility.sc.egov.usda.gov.

Contact Craig Wilbur at Craig@CraigWilbur.com

Understanding the New HARP Refinance

Home Affordable Refinance Program (HARP)...  By: Kirk Haverkamp

So what do the new changes to the government’s Home Affordable Refinance Program (HARP) mean for you? If you’re an underwater homeowner, it could mean a lot.

In fact, it could be the thing that finally allows you to refinance your mortgage at some of those all-time low interest rates you’ve been hearing about, but couldn’t qualify for. Here’s a look at some of the key elements of the changes to the government-backed mortgage refinance program, announced Monday by the Federal Home Finance Agency (FHFA).

 

No loan-to-value restriction

 

The main thing is that you no longer have to worry about how far your home has fallen in value since you took out your mortgage. Previously, you couldn’t get a HARP refinance if your mortgage balance exceeded your home value by more than 25 percent. That limit has been totally eliminated, meaning you can still refinance even if your home value is a third of what you owe on your mortgage, or even less.

 

Appraisals, fees waived

 

The new rules waive certain fees charged at closing, particularly for borrowers who choose to refinance into 15- or 20-year fixed-rate mortgages. High closing costs have been seen as a barrier to refinancing under HARP, so the administration hopes that waiving these fees will enable more homeowners to refinance. Since home value is no longer an issue, appraisals are no longer required, as long a reliable automated estimate is available, though some lenders may still insist on one.

 

There will still be some fees associated with closing costs on the new loan, which can be financed as part of the new mortgage.

 

Fannie Mae, Freddie Mac mortgages only

 

The HARP underwater refinance is available only to borrowers who have mortgages backed by Fannie Mae or Freddie Mac. Since they’re already on the hook if the loans go bad, it’s in their interest to enable underwater borrowers to refinance so they’re less likely to default. It doesn’t really matter to them if the interest rate is reduced, since the interest is paid to the investors who buy the guaranteed loans from Fannie Mae or Freddie Mac. You can find out if yours is a Fannie Mae or Freddie Mac loan at the agencies’ web sites.

 

Who’s eligible?

 

To qualify for the new HARP refinance, you need to have been current on your mortgage payments for the last six months and been late no more than once in the past year. The mortgage must have been transferred to Fannie Mae or Freddie Mac no later than May 31, 2009. The mortgage must be on a one-to four unit dwelling that serves as your primary residence.

 

How much can I save?

 

Underwater borrowers refinancing through the program will save an average of $2,500 a year on their mortgage payments, or more than $200 a month, according to Shaun Donovan, Secretary of the Department of Housing and Urban Development. The government estimates the changes to the program will benefit up to 1 million people, although Moody’s Analytics puts the figure at 1.6 million. The Obama administration may be a bit cautious after their original estimates for borrowers helped by the current version of HARP and its companion HAMP loan modification program turned out to be too optimistic.

 

What kind of loans can I get?

 

This is a significant change from the current HARP. The administration is encouraging underwater borrowers to refinance into short-term 15- and 20-year fixed-rate mortgages by waiving most or all program fees for those loans. The current program mandates that borrowers refinance into 30-year fixed-rate mortgages only. Homeowners will still be able to refinance into 30-year loans if they wish, but they’ll have to pay more fees if they do. Combined with the ultra-low rates now available on 15-year mortgages, that’s a significant prod for borrowers who’ve been in their homes a number of years to shorten up their term and start building back more quickly toward positive equity.

 

When is it available?

 

 Fannie Mae and Freddie Mac are scheduled to provide full details of the program, including information to lenders, by Nov. 15. The FHFA says some lenders may be able to start offering the program by Dec. 1, although most estimates are of a rollout in the first quarter of 2012 for most participating lenders. Chase Bank and mortgage lender Genworth have already indicated they look forward to participating.

 

Sounds great! What are the downsides?

 

Like the current HARP, the new version is voluntary, so not all lenders may participate. But if you have a Fannie Mae or Freddie Mac mortgage, you can refinance with a participating lender even if your current one is not in the program.

 

Because the program is voluntary, lenders may have their own requirements they overlay on top of the HARP guidelines, though there will likely be limits on what they can do. However, there will still likely be credit score and income requirements, the same as for any mortgage.

 

It’s also not yet clear how the new guidelines will address loan-level price adjustments, which are tacked onto the interest rate to reflect certain risk factors. Since being underwater in itself is considered a major risk factor, interest rates offered to homeowners under the current program have sometimes been considerably higher than they expected, even above what they are currently paying. But if seriously underwater borrowers are able to get near-market interest rates when refinancing, this could be a real bonanza for financially stable underwater homeowners.

Plano, Texas, tops list of America's safest cities...

Overall wealth of a community is key to keeping violent crime down

(Dec. 28) Plano, Texas, has some pretty ho-hum claims to fame: It's home to junk-food headquarters Frito-Lay and the Dr. Pepper Snapple Group, for starters, as well as to retail giant J.C. Penney. But it's also America's safest city by our determination, and that's nothing to yawn at.

Plano, a city of 278,000 that's just outside Dallas, boasts the lowest violent crime rate of the cities we looked at and the sixth-lowest traffic fatality rate, putting it tops on our list for the second year in a row.  Read more

North Texas Home Resales Rise for 6th Month in a Row (Dallas Morning News 1/10/12)

For 6 months in a row, sales of pre-owned homes in the North Texas area have increased by 5% in December compared to the previous year. The December increase and gains in recent months were enough to eliminate all the home sale declines in the early part of 2011. By the end of 2011, 64,240 homes were sold by real estate agents in North Texas, which is roughly the same as in 2010.

It was the first year since 2005 that home sales in the area didn’t decline. In addition, the number of homes on the market was down 23% from 2010. Analysts from the Real Estate Center at Texas A&M University predict a stronger year in 2012. Although they say the recovery is expected to be slow and erratic, analysts are optimistic that this year will see upward trends in terms of home sales and pricing for Texas and Dallas, in general.

The latest monthly report from the Real Estate Center shows pending purchases of pre-owned homes increased by 4% in more than two dozen North Texas counties. This is further confirmed by recent findings showing that new home sales in the Dallas Fort Worth area for the fourth quarter were up by 4% from the year before.

The Vote Is In: Americans Place High Value on Homeownership...

RISMEDIA, Saturday, January 14, 2012— By an overwhelming margin, American voters strongly value homeownership and would oppose efforts to weaken or eliminate the mortgage interest deduction or diminish a federal role to help qualified home buyers obtain affordable 30-year mortgages, according to a new nationwide survey gauging likely voters’ attitudes towards homeownership and housing policy issues.

“The American electorate is sending a clear message that owning a home remains a cornerstone of the American Dream and preserving a federal commitment to homeownership is essential to maintain a thriving middle class and get housing and the economy back on track,” says Neil Newhouse, a partner and co-founder of Public Opinion Strategies.

Conducted on Jan. 2-5 on behalf of the National Association of Home Builders by the Republican and Democratic polling firms of Public Opinion Strategies in Alexandria, Va., and Lake Research Partners in Washington, D.C., the comprehensive survey of 1,500 likely voters includes data from key political “swing areas,” including National Journal political analyst Charlie Cook’s swing House and Senate seats and Stuart Rothenberg’s presidential swing states. The survey, which has a margin of error of ±2.5 percent, is a follow-up to a similar national poll conducted last May.

The poll shows that three out of four voters—both owners and renters—believe it is appropriate and reasonable for the federal government to provide tax incentives to promote homeownership. This sentiment cuts across regional and party lines, with 84 percent of Democrats, 71 percent of Republicans and 71 percent of Independents agreeing with this statement.

Also, two-thirds of respondents say that the federal government should help home buyers to afford a long-term or 30-year, fixed-rate mortgage.

Moreover, 73 percent of voters oppose eliminating the mortgage interest deduction. These figures held firm across the political spectrum, with 77 percent of Republicans, 71 percent of Democrats and 71 percent of Independents against doing away with the mortgage interest deduction.

Meanwhile, 68 percent would be less likely to vote for a congressional candidate who proposed to abolish the deduction, a figure that was virtually identical across all party affiliations (69 percent of Independents and 68 percent of Democrats and Republicans).

A majority of voters are also against proposals to reduce the mortgage interest deduction, eliminate the deduction for interest paid for a second home, limit the deduction for those earning more than $250,000 per year, scale back the deduction for home owners with mortgages above $500,000 and do away with the deduction for interest paid on home equity loans.

“With the 2012 election season in full swing, candidates running for the White House and Congress would be wise to heed the will of the American voters, who have expressed broad support for government policies that encourage homeownership and oppose efforts to make it more difficult to get a home loan and to tamper with the mortgage interest deduction,” says Celinda Lake, president of Lake Research Partners.

Among the poll’s other key findings:

• 96 percent of homeowners are happy with their decision to own and 84 percent who are “underwater,” or owe more on their mortgages than their home is worth, expressed the same sentiment.
• 79 percent of home owners would advise a family member or close friend just starting out to buy a home, and 69 percent of those who are underwater on their mortgage would offer the same advice.
• 74 percent said that despite the ups and downs in the housing market, owning a home is the best long-term investment they can make.
• Homeownership and a retirement savings program are considered by voters to be their best long-term investments.
• 78 percent of respondents said that owning their own home is very important to them.
• Nearly seven out of 10 voters who are not currently home owners (68 percent) said it was a goal of theirs to buy a home.
• Job uncertainty and saving for a downpayment and closing costs are the biggest barriers to buying a home.

The survey findings are consistent with the results of other public opinion surveys. In a New York Times/CBS News poll conducted in June, 89 percent said that homeownership is an important part of the American Dream and more than 90 percent indicated that it is important for the federal government to continue the mortgage interest deduction.

According to a Pew Research Study conducted last March, 81 percent of respondents agree that buying a home is the best long-term investment a person can make and 81 percent of renters surveyed said they would like to buy a house.

“Even in a down housing market, homeownership remains a core American value, with the vast majority of citizens who do not currently own a home saying they want to buy a home,” said Bob Nielsen, president of the National Association of Home Builders and a home builder from Reno, Nev. “Those running for office in November need to understand that voters will not look kindly on any candidates who seek to dismantle the nation’s long-term commitment to homeownership.”

For more information, visit www.nahb.org/homeownershippoll.