Maureen Megowan's Blog

Interest rates on U.S. 30-year fixed-rate mortgages averaged 5.04 percent for the week ending September 24, unchanged from the previous week, according to a survey released on Thursday by home funding company Freddie Mac.

That is the lowest rate since 4.91 percent in the week ending May 28. Mortgage rates have hovered around 5 percent, widely viewed as a key psychologically level, for several weeks, but have stayed above 5 percent for 17 weeks.

Here are some loan programs currently being offered by Ron Goodli of Coast Capital Group at 310-798-5514 :

Loan amounts from $150,000-$417,000 Options:

These rates are available at a 0-1.5pt origination fee plus standard closing costs. Rates based on fico score, impound account, loan to value and lock period...

30yr fixed loan      4.5% - 5%             (5.125%APR)

10/1 ARM fixed      4.125% - 4.5%       (4.81% APR)

5/1 ARM fixed       3.49% - 3.75%        (3.81% APR)

 

Loan amounts from $417,000-$729,750..Program is GONE by the end of the year....Options:

These rates are available at a 0-1.5Pt's origination fee plus standard closing costs. Rates based on fico score, impound account, loan to value and lock period...potential for interest only

30yr fixed loan      4.625% - 5.125%         (5.375%APR)

7/1 ARM fixed       4.25% - 4.625%           (4.786% APR)

 5/1 ARM fixed      3.875%  - 4.125%         (4.23% APR)

Loan amounts from $729,750- $2,000,000  Options:

These rates are available at a 0-1.5Pt's origination fee plus standard closing costs. Rates based on fico score, loan to value, lock period and banking relationship... Potential for Interest only payment..

30yr fixed                  4.875%    1.625Pt's        (5.34% APR)

10/1 ARM fixed         5.0%  - 5.375%               (5.63% APR)

7/1 ARM fixed           4.875%  -   5.125%         (5.125% APR)

5/1 ARM fixed          4.375% - 4.625%            (4.745% APR)

3/1 ARM fixed          4.0%  -  4.25%                (4.33% APR)

 Loan amounts from $2,000,000- $10,000,000: Options:

These rates are available at a 0-1pt origination fee plus standard closing costs. Rates based on fico score, loan to value, lock period and banking relationship... Potential for Interest only payment..

10/1 ARM fixed      5.25 -    5.50%               (5.735% APR)

7/1 ARM fixed        4.875% - 5.125%            (5.269% APR)

 5/1 ARM fixed       4.625%-  5.0%                (5.128% APR)

 3/1 ARM fixed       4.125% - 4.375%            (4.399% APR)

Melahat Uzumcu. who owns a 6,900 sq. ft estate in Malaga Cove in Palos Verdes Estates, is in trouble with local city officials for allegedly illegally renting her estate out for weddings and other catered affairs, which have disturbed her neighbors.  She is  facing up to two years in jail and a $4,000 fine and city officials are considering sueing her.

This 7000-square-foot house on Paseo del Mar in Palos Verdes Estates has allegedly been rented by the owner for weddings and to vacationers, which would be a violation of city ordinances. (Steve McCrank Staff Photographer)

Uzumcu is set to be arraigned Tuesday in Torrance Superior Court on charges of violating the zoning code, creating a public nuisance and conducting a business without a license.

A few days ago, I posted a blog entry What Happens when Uncle Sam stops buying mortgages??? where I discuss the increase in interest rates that the mortgage market will experience when the Federal Reserve finally stops its purchase of mortgage backed securities from Fannie Mae and Freddie Mac.  The $1.25 billion Fed mortgage purchase program was scheduled to end by year end.  Most of the capital that is going to originate new mortgages is coming from the Federal governemnt, and until individual investors begin to invest again in mortgage backed securities, or banks are again willing to hold mortgages on their own balance sheet, interest rates may rise substantially when the Fed ends its mortgage security purchase program. It has been estimated that mortgage rates today would be at least two-tenths to a half percentage point higher without the Fed mortgage backed securities purchae program.

Yesterday, the interest rate markets got a short term reprieve when the Fed announced that they would extend their purchase of mortgage backed securities through March of next year This will allow a few more months for the Fed to ease out of the mortgage backed securities market and allow some additional time for the private capital markets to re-establish themselves.

A family adventure combining nature and art will be offered Saturday at the Terranea Resort in Rancho Palos Verdes.

The Palos Verdes Peninsula Land Conservancy, Art To Grow On Inc. and Terranea invite families to take a hike along the coastal bluffs, ending at an outdoor art studio. Once there, participants will paint their own impressionist masterpieces of the natural surroundings.

The event runs from 10 a.m. to noon. Participants need to arrive on time, since the hike departs promptly at 10 a.m. Brushes and paints will be provided.

Terranea Resort is at 6610 Palos Verdes Drive South. Parking is at the fishermen's access lot on Palos Verdes Drive South west of the resort.

The hike is slow and moderate but over natural terrain. Hikers should wear good walking shoes and plenty of sunscreen. Snacks will be provided.

Cost is $25 per family and reservations are required and limited. Call Christen Kitner at 310-541-7613 for reservations.

The 2009 Palos Verdes Art Colony Fine Art exhibition will also be on display at the Terranea Resort through Friday, October 2nd daily in the Lunada Bay Room.

                                                            Beautiful Palos Verdes Peninsula Condo
                                                                         3605 W. Hidden Ln. #118
                                                                  1 Bedroom, 1 Bath , 659 Sq. Ft.
                                                                                     $220,000

FANTASTIC LOCATION AND BEAUTIFULLY UPDATED. View of lushly landscape Pool * Located near pool, clubhouse & tennis courts. PRIVATE AND QUIET. Gated subterranean parking space is very close to unit. Large walk-in closet in master • Gym, sauna, spa, ping pong and billiards • Large, Clean laundry facilities are coin operated. Easy commuter access to Torrance and freeways. Award winning Palos Verdes Schools. It has been leased as Short term Rental - been very populat at $2400 per week,- completely furnished. Furnishings not included in the sale but are negotiable. This listing is a short sale and approval by the property lender is required.   To view this property, contact Maureen Megowan at 310-259-7124 or 310-541-6416. MLS # V09101948

                                          


Beautiful Pool                                                                                   Living Room


    Tennis Courts                                                                       Lovely Landscaped Grounds


   Bathroom                                                                                   Dining Area



    Serene Waterfall                                                                       Community Room and Pool Table

 Bedroom

This condo is located in an unincorporated area of the Palos Verdes Peninsula, with the mailing address "Palos Verdes Peninsula" . The following is a map of the Palos Verdes Peninsula divided up into neighborhoods as grouped in the Multiple Listing Service ("MLS"):

Map of Palos Verdes Peninsula (the unincorporated area with the mailing address "Palos Verdes Peninsula" is in yellow )

This condominium is in a small area just south of the intersection of Rolling Hills Road and Crenshaw Boulevard, adjacent to Torrance and surrounded on three sides by Rolling Hills Estates, whicht is an unincorporated area of Los Angeles County, with the mailing address of Palos Verdes Peninsula. The condo is part of a large condominium and townhouse project called The Estates, which has some of the more affordable hoousing units on the Palos Verdes Peninsula. These unincorporated areas, although not a part of the four cities of the Palos Verdes Peninsula, are included in the boundaries of the Palos Verdes Unified School District.

The residential area on either side of Crenshaw Boulevard,south of Palos Verdes Drive North, which is accessible only from Palos Verde Drive North, is also not in the City of Rolling Hills Estates, and is also  in an unincorporated area of Los Angeles County referred to as Palos Verdes Peninsula, California. This unincorporated area consists primarily of two neighborhoods. One is called Academy Hill, with less than 200 homes, and the other is called Westfield, with approx. 300 homes. Many of the homes in The Palos Verdes Drive North area are zoned for horses and have larger lots. There is an extensive system of horse trails in this area as well as the adjacent city of Rolling Hills.

Information on the other incorporated cities on the Palos Verdes Peninsula may be obtained on my website http://www.maureenmegowan.com .

Schools: 

Students attend school at Palos Verdes Peninsula High School (located in Rolling Hills Estates) , Ridgecrest Intermediate School and Miraleste Intermediate School ( located in Rancho Palos Verdes), and several local elementary schools, all part of the Palos Verdes Unified School System. There is an additional high school located in Palos Verdes Estates, Palos Verdes High, and both high schools are California Distinquished Schools, with open enrollment to students on the Peninsula (they do not have enrollment boundaries). Palos Verdes HIgh has a unique class scheduling structure, called block scheduling, where students attend three extended periods each day, alternating with their other three classes each day. Peninsula High has a more traditional structure of the same periods for all classes each day. Palos Verdes Unified School District has some of the highest test scores in the state. For local school test scores, Click Here. For attendance boundaries for elementary and intermediate schools, Click Here.  .  There are also a number of excellent private schools on the Palos Verdes Peninsula.

Culture:

Most of the cultural activities for the Palos Verdes Peninsula are located in Rolling Hills Estates. These include the Norris Center for the Performing Arts,  the Peninsula Symphony, and the PV Players. The Palos Verdes Art Center is located in the City of Rancho Palos Verdes. For further information on Arts and Culture on the Peninsula, Click Here.

Sports, Parks and Recreation:

Children in the Palos Verdes Peninsula area play baseball in two little leagues ; Rolling Hills Little League (located in adjacent Rolling Hills), and Silver Spur Little Leage (located in Rolling Hills Estates), ( For a map of the little league boundaries, Click Here ) Pony League baseball for 13 to 15 year olds, is available at Ernie Howlett park in Rolling Hills Estates, and George Allen Field in Palos Verdes Estates. AYSO Soccer leagues are active throughout the City. Girls softball is generally played on fields at various school locations There are also youth basketball leagues, and lacrosse leagues for intermediate schools.

Public Golf Facilities are available at  Los Verdes Country Club and Trump National Golf Club in Rancho Palos Verdes, and the Palos Verdes Country Club (weekdays only).  Los Verdes is a public golf course run by the County of Los Angeles. See Golf on the Palos Verdes Peninsula for detailed information on the Golf Courses on the Palos Verdes Peninsula.

Rolling Hills Estates has several large parks including Ernie Howlett Park, Highridge park, and four other park facilities.

Ernie Howlett Park is located at 25851 Hawthorne Boulevard between Palos Verdes Drive North and Rolling Hills Road, Ernie Howlett Park is the Citys major recreational facility.This 35 acre park provides facilities to many sporting and leisure activities, including: four one-wall handball courts, multi-purpose athletic fields, a regulation basketball court, a sand volleyball court, picnic tables, barbecue pits, and a variety of playground equipment. The park also boasts a 3/4-mile running track and a bicycle path. However, for many of the sports-mined, the main attractions of Howlett Park are the Rolling Hills Estates Tennis Club and the Equestrian Center. Eight tennis courts are open to the public, with a patio, refreshment center, and a grandstand for tournament spectators.

The Equestrian Center at Ernie Howlett Park, which features three riding rings, a dressage area and grandstand, and multi-use trail, is a frequent site for local horse shows. Other equestrian facilities are located in the City at the Rolling Hills Estates Stables, the Empty Saddle Club, Chandler Park, and Dapplegray Park, as well as the Palos Verdes Stables in Palos Verdes Estates.

Located at the corner of Crestridge and Highridge Roads, Highridge Park is a 10-1/2 acre facility that features two regulation-size soccer fields, youth softball/baseball field, barbecue pits, restrooms, picnic tables, playground equipment, approximately one mile of running track with Par Course stations, and a multi-use trail.

The South Coast Botanical Gardens are located on a former landfill site on Crenshaw Boulevard. The Gardens include many unique garden environments, including a Japanese garden, a rose garden, a children's garden, and a water garden. Many events are held here including garden shows and concerts. 

    
Entrance to South Coast Botanical Gardens                  Gazebo in Upper Meadow

Tennis may be played at  Ernie Howlett Park in Rolling Hills Estates, the Jack Kramer Club in Rolling Hills Estates, at the Peninsula Racquet Club in Rancho Palos Verdes, or at one of the excellent courts at Peninsula High. Tennis League play is available through the South Bay Marine League, which has teams at most of the private tennis clubs in the area as well as Ernie Howlett Park in Rolling Hills Estates

For additional information on sports, parks and recreation opportunities on the Peninsula, Click Here.

Taxes:
Property Taxes: The property tax rate for the fiscal year 2008-2009 is approx. 1.05%  (computed by the standard 1.0% of the property's assessed valuation (in accordance with Proposition 13, a property's assessed valuation is the original purchase price, plus the cost of improvements, based on the value of permits pulled, plus an increase in valuation of 2% per year) plus additional tax rates for voted bonded indebtedness) plus direct assessments of approx. $600-$700 per parcel for such items as school parcel taxes, etc.

Taxes are assessed for the fiscal year running from July 1st through June 30th, with property tax bills payable in two installments on December 10th and April 10th. If a property changes ownership during the year, a supplemental tax bill will be prepared prorating the tax increase due to a change in valuation over the remainder of the fiscal year. If a change in ownership occurs between January 1 and May 31 this will result  in two supplemental assessments and two supplemental tax bills. The first supplemental bill is for the remainder of the fiscal year in which the event occurred. The second supplemental bill is for the subsequent fiscal year.

Property Transfer Tax: The County of Los Angeles levies a transfer tax upon the sale of a property of $1.10 per thousand dollars of the sale price.

After more than a decade of community wrangling and a series of plans that fell by the wayside, the Los Angeles Board of Harbor Commissioners is poised next week to consider a $1.2 billion waterfront redevelopment plan aimed at reviving the image and economy of San Pedro.

The Los Angeles harbor commission is expected to listen to public comments before finally deciding whether to sign off on the massive San Pedro Waterfront redevelopment proposal during a meeting set for Sept.29 at the Liberty Hill Plaza Building, 100 W. Fifth St., San Pedro.

 (Robert Casillas, Daily Breeze Staff Photographer)

The 400-acre project primarily focuses on bringing the community closer to the water by building a series of parks, shops, restaurants, harbors, walkways, street improvements, an extended Red Car trolley line and a new cruise terminal that will accommodate larger ships calling at the port, according to a 7,000-page environmental impact report released last week by the port.

 Additional Information about the proposed improvements to the San Pedro waterfront can be seen at my sebsite at San Pedro Real Estate .

Currently, 85% of new mortgages are guaranteed by Government backed entities( FHA, FNMA, GNMA, Freddie Mac) and the Fed buys 80% of the securities into which these government backed mortgages are packaged.  This dominance of the Fed and the reliance upon the Government to fund mortgages can not last forever. The Federal Reserve's $1.25 trillion special program to buy Fannie Mae and Freddie Mac securities is two-thirds complete and is scheduled to close at the end of the year. What happens then???

More than half of the country's home mortgages are now being originated by only 3 banks; Wells Fargo, Banik of America, and J.P. Morgan Chase. The problem is that these banks are acting only as originators of mortgages, and immediately sell most of the mortgages that they create to Fannie Mae and Freddie Mac and hold very few of them on their own balance sheets. Combined, the 3 dominant banks actually held 3.5 % fewer mortgages on their balance sheets in the firs half of 2009. (note: the statistics for this post came from a wall street journal article U.S. Bets the House - WSJ.com )

This strategy of the banks to sell almost all of their mortgages has fed their bottom line with strong loan origination and mortgage servicing fees with very little risk. The fact that banks are unwilling to hold mortgages for their own investment demonstrates that the interest rates of these mortgages are artificially low , driven down by the government purchase of them, and the banks are thus unwilling to invest their own money in them.

When the government stops funding mortgages, where will the capital come from? In the recent past, capital for mortgages came from mortgage backed securities funded by investors through Wall Street. This type of security is now dead. Investment by private capital ( banks, individual investors, and pension funds ) will only happen if interest rates are allowed to increase to a level to compensate investors for the perceived risk in these investments.

Because of this, I believe that there is a very real risk of interest rates escalating substantially after the first of the year, especially if signs of inflation start to emerge as the economy strengthens. Because of this, I have been encouraging buyers to buy now, if they are buying a home for the long term, as this may be the best time in the foreseeable future to buy a home.

 

As many of you may know, my husband Bruce and I have been leading a petition drive to have the County of Los Angeles use a portion of the previous Palos Verdes Landfill in Rolling Hills Estates as a dog park, or to establish a dog park on another suitable site on the Palos Verdes Peninsula. There is a tremendous unmet need for an off-leash dog park on the Palos Verdes Peninsula. The nearest dog park is at least a 20 minute drive away in Redondo Beach off of 190^th Street, or at a temporary dog park in San Pedro which is scheduled to close in the next few years as it is on Port of Los Angeles land. Donna Littlejohn, a reporter for the Daily Breeze, also has blogged about our efforts to establish a dog park at her blog http://www.insidesocal.com/pets/palos-verdes-dog-park-1/

At Tuesday nights Rancho Palos Verdes City Council meeting my husband Bruce and I spoke about the support that we have for the concept of a Palos Verdes peninsula dog park, as evidenced by the over 800 signatures we have obtained on petitions. Here is a link to a Daily Breeze article about our speaking to the RPV City Council: http://www.dailybreeze.com/news/ci_13354417

 Picture of my miniature Australian Shepherd "Pepper "

I understand that RPV city staff have been evaluating a site within the RPV city boundaries for a possible dog park. This is exciting news and I hope that this possibility will be pursued to a successful conclusion.  As a second alternative, we are also continuig to pursue the idea of having the County of Los Angeles dedicate part of the former Palos Verdes landfill site as a dog park.  This site is within the boundaries of Rolling Hills Estates. We have forwarded copies of our petitions to the RHE council members and Iwe will also be attending their council meeting next Tuesday night. The RHE City Council Meeting will be held at 4045 Palos Verdes Drive North (the northwest corner at Crenshaw Boulevard) Tuesday night 9/22 beginning at 7:30 pm :

  Aerial view of former Palos Verdes Landfill  between Hawthorne and Crenshaw, north of Palos Verdes Drive North, across the street from Ernie Howlett Park on Hawthorne, and across from the South Coast Botanical Gardens on Crenshaw.

The obvious advantage of having a dog park established in RPV is that it may be several years before the Palos Verdes landfill site is deemed safe to develop other land uses on it.  Therefore, I would encourage the RPV city staff to continue to pursue the possibility of creating a dog park in RPV. You would have many dog owners on the hill forever grateful.

Above is an example of a dog park layout, including areas for both large and small dogs, an agility area, a small playground for small children, a covered shelter area, drinking fountains, etc.

It would be great if you could attend the City Council meeting for the city you live in to show support for a dog park on the Palos Verdes Peninsula.  You should also send an email to LA County , to each of the city council members as well as the city manager of the city you live in to express your support for a dog park:

RHE City Council member emails:

JudyM@ci.rolling-hills-estates.ca.us

JohnA@ci.rolling-hills-estates.ca.us

SusanS@ci.rolling-hills-estates.ca.us

SteveZ@ci.rolling-hills-estates.ca.us

FrankZ@ci.rolling-hills-estates.ca.us

City Manager email:

DougP@ci.Rolling-Hills-Estates.ca.us

 

Rancho Palos Verdes City Council Meeting, Fred Hesse Park Multi-purpose room, 7:00 pm Third Tuesday of each month.

City Council members:  cc@rpv.com

City Manager:  citymanager@rpv.com

Head of parks dept:  parks@rpv.com

Palos Verdes Estates City Council meeting, 7:30 PM Tuesday night October 13 :

City Council members emails:

Mr. Rae : cityclerk@pvestates.org    

emperkins@cox.net

rosemaryhumphrey@hotmail.com

goodey10@cox.net

gfb@birdandbirdlaw.com

City Manager Mr. Hoefgen c/o cityclerk@pvestates.org

County of Los Angeles email addresses:

Mike Ginn, assistant to Don Knabe  MGin@lacbos.org

Don Knabe, County Supervisor don@lacbos.org

Dog Parks provide a wonderful place for dogas and their owners to exercise and socialize. Please join us in our fight to get a dog park on the Palos Verdes Peninsula. This will probably be our best chance to build support for this effort.

 

The median price of a home in Southern California moved up again in the month of August by 2.6% to $275,000, according to real estate research firm MDA DataQuick. But the number of homes sold, although up 11% from August 2008, was down 10.8% from July.

Southern California's median home price climbed for a fourth straight month in August, boosted by investors snatching up homes in distant suburbs and a relative decline in foreclosed homes for sale. The market bottomed out in April at a $247,000 median, the San Diego company said.

UCLA economist Edward Leamer stated that "although home values are still dropping in many neighborhoods, rising home sales and median prices are "all symptomatic of a bottoming out" and the worst days of the housing market are probably over".

Locally, I have seen a continuing strenthening in sales as more and more buyers are recognizing that now is a great time to buy while interest rates are at historical lows and sellers are anxious to sell.

Help do your part in protecting the environment by participating in Heal The Bay's Coastal Cleanup Day! There are  over 70 California sites that will be simultaneously cleaned up on Saturday morning from 9 a.m. to noon including many South Bay Beach locations. This is one of the most direct ways you can noticeably contribute to a great cause, while helping keep our local area beautiful.

Cigarette butts, snack wrappers and bottles are left behind by ignorant people on a daily basis- the trash would end up in the ocean without the help of organizations like Heal The Bay and volunteers like yourself. Check out South Bay Events for more details- setting aside just 3 hours is worth it to protect our beach. Go to the site to officially register!