203K MORTGAGES
PASSED THE 203K EXAM!!! So all you people who want to turn a fixer-upper into your dream home, give me buzz.
Archive for October, 2011
REPRINTED FROM THE WALL STREET JOURNAL
NOW IS THE TIME TO BUY.
The Wall Street Journal
Last week, in an article entitled It’s Time to Buy That House, the WSJ told their subscribers:
“It’s an excellent time to buy a house, either to
live in for the long term or for investment income…Houses aren’t the
magic wealth creators they were made out to be during the bubble. But
when prices are low, loans are cheap and plump investment yields are
scarce, buyers should jump.”
In an article two weeks ago, MarketWatch.com (the on-line blog for WSJ) told their readers:
“Now could be the best time in history to buy a home.”
Forbes.com
In a report to their subscribers, Capital Economics reported that:
“The previous declines in house prices and the more
recent drop in mortgage rates to record lows have created an unusual
situation in which the median monthly mortgage payment is more or less
the same as the median rental payment.”
Why is this important? Last week, Forbes explained to their readers:
“If rents simply kept up with inflation at a 3.2% annual increase, a $1,500 rent
payment
would cost that renter nearly $900,000 over the next 30 years. The same
$1,500 payment made to their mortgage would be only $540,000 (because
the payments don’t increase with inflation).”
They went on to explain the advantages of homeownership during retirement:
“Even with a dismal 1% growth rate over 30 years, a
$300,000 property would appreciate well over $100,000 giving the
homeowner an additional nest egg for retirement…
At a time when retirement is becoming much more challenging, an extra $400,000 (or likely more) can make a major difference not to mention the impact of NOT having to pay a mortgage. How much less would you have to save for retirement if you didn’t pay the mortgage?”
Bottom Line
When the iconic financial newspaper and the iconic financial magazine
say that it now makes financial sense to purchase a house, perhaps it’s
time to buy a home.
TIPS From TRULIA.com SAVING FOR A DOWN PAYMENT
Tips From TRULIA.com on saving for a down payment (Author-Jovan Hackley)
Research has shown time and again one of the greatest hurdles to home buying is coming up with the, sometimes dreaded, downpayment. Here are a few softer practical strategies to help you clear the hurdle and come up with the cash you need.
6 Steps to Saving for a Down Payment:
1. Plan for progress –
Your Dream Budget- Saving isn’t all dollars and cents, it’s a little emotional. That’s why weecommend finding a few visuals to remind you why you’re in thesaving game. They could be photos or a list of features of your dream home. Whatever your focal point, we recommend storing it close to your budget, wallet, or in the place you pay bills to remind you of whatyou’re working for.
2. Slow your Spending –
The 10-day rule- The biggest enemy of spending is the impulse buy. So, for purchasesover $25 exercise some self-discipline and give yourself 10-days to decide, Is this purchase for a real need or a want?
3. Avoid the Convenience.
Your mother was right, good things take time…and so do cheap things. From coffee on the go to lavish meals out, most consumers are paying quite a bit for convenience. Try to avoid your local convenience stores and become friends with your kitchen to help your bottom line.
4. Drink More Water.
According to the National Soft Drink Association, the average American Household spends about $850 annually on sweetened drinks. In contrast, water costs just a penny per gallon. Do this and you’ll start your life as a homeowner not only richer, but a bit healthier too.
5. Track Expenses –
Face Your Truth-We scoured the net and all the experts agree, the only thing more powerful than creating a budget is actually reading and tracking it. We suggest you schedule some time with yourself every week to face the truth about your spending habits and find new ways you can save.
6. Eliminate the excess spending.
Locate the excess in your budget and slash it. Trade the gym for home workouts, expensive movie nights for checking out free videos from the library, and keep an eye out at the end of each month for services you aren’t using.
Saving for Your Down Payment
Serious Sources for a Down Payment-These suggestions aren’t for the faint at heart.But, if you’re serious about saving up these sure fire moves will help you reach your goal.
Payroll Deductions: One of the best ways to save money is to hide it from yourself. Payrolldeductions or allocating a piece of your direct deposit to a special savings account can be a great way to trick yourself into saving.
Tax Refund: You know it’s coming, so why not use it toward your down payment? If you’rereally serious about home ownership, talk to an accountant about tax planning to make sure there is a little green at the end of the year to help you with your down payment.
Borrow from the 401k:
It’s not losing your retirement, it’s more so using a piece of one investment to make another. First-time homebuyers can one-time borrow up to $10,000 from their Individual RetirementAccounts (IRAs) without paying the early withdrawal fees. Be sure to talk to your 401k or IRA administrator to find out how it will impact your retirement.
More Work:
Yes, we said it; more work. If you’re serious about reaching your down payment goal, consider spending a few hours working part-time. 10 hours/ week at $10/hour all year will get you $5200 closer to your goal.
© 2011 Trulia.com · All Rights Reserved.
NEWS ON VA HOME LOANS
Effective October 1 November 17, 2011, the costs associated with getting a VA mortgage are going DOWN!
An overview: VA mortgages are bundled, securitized and sold in the
secondary market with the backing of the Federal Government. In order to
insure these mortgages, the government charges a type of insurance
premium, called a VA Funding Fee, which is typically added to the loan
amount (thereby financed).
Remember, too, that the VA (subject to some restrictions) will insure loans up to 100% of the purchase price for the home.
What is happening next week? On loans that
close effective November 17, that Funding Fee is being reduced. Because
it is typical that the fee is financed into the loan, the VA is
effectively lowering the monthly cost (because the loan amount is lower)
AND the amount that will be paid back when the home is sold (again,
because the loan amount is lower). It’s a win/win for the veteran.
If you have any questions about purchasing a home with a VA loan or if
you already have one and are considering a refinance of it because of
the low interest rates, reach out to your favorite mortgage professional
and explore the possibilities. There has never been a better time!
Print
Tagged as:
Dean Hartman,
Mortgage Payment
About The Author
Dean Hartman is the Regional Vice President of
Benchmark Lending and a 25 year veteran of the mortgage banking
industry. He has achieved the designation of Certified Mortgage Planning
Specialist, and also specializes in sales leadership, seminar
presenting, and team building. Check out Dean’s Facebook Page, DreamTeamTV.
Previous post: Does Previous Sales Experience Matter?
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YOU AND YOUR AGENT
Picking the Right Agent is Crucial
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The National Association of Realtors (NAR) released their Existing Sales Report
two weeks ago and in the report they discussed a troubling trend:
cancelled contracts are increasing dramatically. NAR defined the issue:
“Contract failures – cancellations caused largely by
declined mortgage applications or failures in loan underwriting from
appraised values coming in below the negotiated price.”
NAR explained that 18% of all contracts were cancelled in August. This compares to 16% last month and 9% in August of 2011.
The percentage of cancelled contracts has doubled in the past year!!
It is extremely important that both buyers and sellers pick the right
real estate professional to assist them with their real estate needs.
BUYERS
Make sure your agent can not only help you find
the home of your dreams but also find you professional assistance with
all aspects of the transaction (mortgaging, title, etc.)
SELLERS
Realize that your agent must sell the home twice:
- to a qualified buyer
- to the bank (through the appraiser).
The second sale may be more difficult in this market than the first.
Bottom Line
It is imperative in this housing market that both buyers and sellers
use a true real estate professional to guarantee that the deal will
actually reach the closing table.
DEBORAH’S RESUME
Objective: To provide a service of communication and
information that will guide you into your decision making process, whether
buying or selling a home.
Experience: 2002 –
Present: Fillmore Real Estate-Licensed Real Estate Associate
Duties: The marketing
of properties, coordination of
contracts, forms and disclosures
statements required by the State of N.Y., pre-qualify buyers and assist them in
obtaining financing, communicating with mortgage lenders, arranging (engineer)
home inspections, provide detailed progress reports, negotiating offers and
counter offers, communication with attorneys, managing all facets of the
transaction until the move is complete.
Advise sellers on getting their home ready for presentation. eg: clean-up, staging of furniture and
accessories, necessary repairs and upgrades.
1994 – 2002: Marvin
Gold Management- Assistant Property Manager/Bookkeeper
Duties: The handling
of all communique between co-operators and management. arranging for improvements and repairs,
collecting of maintence fees, disbursements of accounts payables,
correspondence with attorneys and
vendors.
1988 – 1994: Fogarty
Real Estate- Licensed Real Estate Associate.
Duties: See above.
Education: New York State Real
Estate Licensing Program, New York School of Real Estate: Continuing Education,
ProCalibre Assocites: Specializing in communication & consultation skills
for the consumer. Brooklyn College
-2 years Business admininstation
Acknowledgements: National
Association of Realtors, New York State Association of Realtors, Brooklyn
Board of Realtors.
Designation: Licensed Real Estate Sales Agent
Certified
Financial Specialist
Brooklyn or Bust- WELCOME TO OUR BOROUGH
Hello Real Estate enthusiasts. Welcome to my new blog on WordPress.com. I hope to keep you informed on Market Trends, Comparable Analysis, New Homes To Hit The Market, and Important Updates In Mortgage News.
In the future you will be able to send me your real estate related questions, and get the necessary answers to make your real estate transactions an enjoyable experience.
Looking forward to hearing from you.
DEBORAH’S BIO
Deborah Lerner is a life-long resident of Brooklyn N.Y. In 1988, after spending fourteen years as office manager for a Brooklyn car dealership, her desire to deal with people on
a day to day basis inspired her to change careers and become a Real Estate
Salesperson. “I know Brooklyn,” says Deborah, “all facets, from the transit system to the school system; from the museums and parks to the night-life and restaurants.
Not only do I know Brooklyn, I Love Brooklyn” Her knowledge of the borough has given her the uncanny knack of match-making–finding the right fit between home and buyer.A former student of design, her flair for interior decorating has proved invaluable in suggesting stylish home improvements to both buyer and seller. When first joining the staff of Fillmore
R.E. in 2001, Deborah volunteered for membership in the President’s Council, a think tank headed by Fillmore’s president, John Reinhardt. On the lighter side, Deborah is a
Capricorn, and therefore creative by nature. She designs her own brochures and other
marketing materials. In her spare time she enjoys doing arts and crafts, from oil and water-color paintings, to scrapbooking and creating her own line of greeting cards. Poetry, short
stories, even a novel (though unpublished are among her creative accomplishments.“And when I really want to relax and unwind, and lower my blood pressure, I enjoy the company of Snuggles and Cookie, my two loving cats.”
If you want a
dedicated professional to market and sell your home, please contact me at:
FILLMORE REAL ESTATE- 2111 Avenue U Brooklyn, NY 11229
718-332-8800 or
917-865-8653
deborahlernerfillmorerealestatepro 
{ 4 comments… read them below or add one }
Jenni Marquardt
September 29, 2011 at 12:43 pm
Dean-
We have information from Washington that states that the President will
sign a bill on Monday that will negate these reductions until November
18th. Can you clarify ?
John Inzeo
September 29, 2011 at 12:57 pm
Dean,
I just received clarification from our Washington group that the funding
fee structure is not reduced on Oct.1. If the President signs the bill,
the reduction will not come until November 18th.
Dean Hartman
September 29, 2011 at 3:29 pm
It appears that (subsequent to my writing of this blog yesterday)
that the House has passed a bill which the President is expected to sign
which extends the current Funding Fees until November 17th. Despite
the fact that the VA’s own website still states that the change is
expected October 1st, that information seems to be outdated.
The good news is that the change is still, by all extimations coming. It just looks like we will be waiting another six weeks!
robin baringer
October 3, 2011 at 6:48 pm
keep me informed with anything to do with the va benefits and realestate
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