Should you buy your first home now or wait? The decision's best made by exploring your personal answers to the following 7 financial and emotional questions:
*Are you pre-approved for a mortgage you can live with? Even though loan requirements are tougher than they were a couple of years ago, there is money available for people with good credit and not too much debt. If you don't know, ask your Realtor for a qualified mortgage lender, so you can determine whether or not you can afford a mortgage. Real estate loan rates vary, so you want a fixed mortgage you can live with for the long term. A good mortgage lender will go over all the costs of owning a home with you (mortgage, taxes, insurance, mortgage insurance, and possible HOA costs). Did you realize that 30% of the homes in the US are paid off and have no mortgage? Further, did you know that 96.7% of the home mortgages in the US are NOT in foreclosure? The current instability discussed in our news is about less than 5% of US homeowners.
*Do you have your down payment money saved? You will need about 3.5% of the purchase price for the lowest down payment loan out there, an FHA loan. That's $5250 for a $150,000 home. If you can put 20% down, you'll avoid mortgage insurance and save yourself that monthly expense. That's $30,000 on a $150,000 home.
*Are you ready to start building your own wealth rather than your landlord's? Over time real estate is less volatile than stocks. Using US Census data from 2005, a home worth $18,000 in 1963 was worth $226,933 in 2005 and if the homeowner didn't keep refinancing it past the normal 30 year mortgage term, it had been paid off for 8 years! Real estate has a better return than savings accounts, as you know. The Federal Reserve Board estimates that homeowners' net worth has ranged between 31 and 46 times more than that of renters in the years 1998 to 2007! The combination of increased home value over time and paying off your loan builds your wealth in the long run.
*Do you want a place to call your own? Do you want to choose your own colors and finishes? Have pets? Take pride in your home? Have a yard? Work on your projects? Have your own space?
*Do you want the $8000 tax credit? The US government is giving up to $8000 to first time homebuyers who close their transaction before December 1, 2009. Since the money can be claimed against your 2008 taxes this year as soon as you've closed, you can have that money this year! There are income limits, so check out the details.
*Do you want to pay more for a mortgage when the rates go up further? For the past few years mortagage interest rates have been kept artifically low. Just last week rates burbled up about 0.25% of a point. If bond prices continue to fall, the interest rates will rise. Right now interest rates are hovering near the 40-year lows.
*Do you want a bargain? Prices have softened all over. Homes are more affordable than at any time since NAR started tracking this number! While the supply has decreased a bit this quarter, there are still more homes to choose from than there are buyers in many segments of the market. Ask your Realtor for specific details in the neighborhoods where you want to live. Find out what is available in your price range.
So what are your answers to the 7 questions above? Is now your time to buy? Let me know what questions you have and how I can help you with this important decision.
Saturday, June 6, 2009
Friday, June 5, 2009
WOHA! Tax credit available AFTER closing.
You're planning to use the $8000 tax credit for your home purchase. Just when can you get that money? I published earlier that Donovon wanted to make the first time home buyer tax credit available as funds for closing. No one has figured out how to do that. Here's the lastest from a lender I've worked with whose +20 years of experience in working with first time homebuyers makes her a very reliable source!
http://www.lendingahand.com/2009/05/tax-credit-for-down-payment/
In a nutshell, count on the money after closing and filing the amendment to your taxes.
http://www.lendingahand.com/2009/05/tax-credit-for-down-payment/
In a nutshell, count on the money after closing and filing the amendment to your taxes.
Wednesday, June 3, 2009
Job Hunting? Stand out from the crowd.
Can you relate? Every week, when I'm calling past clients and friends, I hear about another person who is un- or under-employed and looking for a new job. What makes it possible to stand out from the crowd that's job hunting?
Pat and Sandy Padbury, past clients of mine, have put their years of experience getting jobs for professionals into a format that today's job seekers can use to successfully get employment! Here's their information:
Reachmycoach.com Inc. was created for one reason:
Help people find employment!!
This “How to” Marketing Program was developed after Training and Coaching Headhunters, Executive Recruiters, Staffing and Consulting organizations throughout the United States for over 30 years. It is now available just for you; starting with a Confidential One Hour Telephone Session rewriting your Resume, developing a personal 10/13-second (Telephone & Email) presentation to employers and later sending you our Non-Aggressive Coaching Manual and Interviewing Program.
Before you begin, understand these techniques have been “field tested” with many Companies and individuals (Testimonials below). You must follow each and every STEP in order to increase your odds of success. This program or methodology cannot be “skipped, changed or modified.”
Stand out, don’t be like everyone else!!
TULSA, OKLAHOMA- Senior Operations, Production, Reservoir Engineer
“I really liked what you did and the format is excellent! Thank you very much! I did receive the “coaching” manual and the intro templates-very nice! Here we go!
I am very impressed with your system and approach! Good Job! Steve
KNOXVILLE, TENNESSEE-John F. Yu, President, Technical Staffing
“Your ideas are on the leading edge of technology for the industry and yet simple to implement. You allowed for individuality to prevail while creating an environment where your techniques can be successful for anyone who commits to embracing them.”
DENVER, COLORADO-David Perry, President, Momentum Resources, Inc.
"If you are seeking expert advice about what really works in our industry, from a nationally recognized specialist, don't delay in calling. I have found Reachmycoach to be through, knowledgeable and painfully honest."
DENVER, COLORADO-P. Heatherington, Manager, Oppenheimer Funds
“I consider you a wonderful leader! Hope you don’t mind, I told my students at the University of Denver about your interviewing strategy. If there is anything I can help you with, please don’t hesitate to let me know.”
Contact: (303) 922-9379 or ppadbury_1@msn.com - ask for Sandy
2008-2009
Pat and Sandy Padbury, past clients of mine, have put their years of experience getting jobs for professionals into a format that today's job seekers can use to successfully get employment! Here's their information:
Reachmycoach.com Inc. was created for one reason:
Help people find employment!!
This “How to” Marketing Program was developed after Training and Coaching Headhunters, Executive Recruiters, Staffing and Consulting organizations throughout the United States for over 30 years. It is now available just for you; starting with a Confidential One Hour Telephone Session rewriting your Resume, developing a personal 10/13-second (Telephone & Email) presentation to employers and later sending you our Non-Aggressive Coaching Manual and Interviewing Program.
Before you begin, understand these techniques have been “field tested” with many Companies and individuals (Testimonials below). You must follow each and every STEP in order to increase your odds of success. This program or methodology cannot be “skipped, changed or modified.”
Stand out, don’t be like everyone else!!
TULSA, OKLAHOMA- Senior Operations, Production, Reservoir Engineer
“I really liked what you did and the format is excellent! Thank you very much! I did receive the “coaching” manual and the intro templates-very nice! Here we go!
I am very impressed with your system and approach! Good Job! Steve
KNOXVILLE, TENNESSEE-John F. Yu, President, Technical Staffing
“Your ideas are on the leading edge of technology for the industry and yet simple to implement. You allowed for individuality to prevail while creating an environment where your techniques can be successful for anyone who commits to embracing them.”
DENVER, COLORADO-David Perry, President, Momentum Resources, Inc.
"If you are seeking expert advice about what really works in our industry, from a nationally recognized specialist, don't delay in calling. I have found Reachmycoach to be through, knowledgeable and painfully honest."
DENVER, COLORADO-P. Heatherington, Manager, Oppenheimer Funds
“I consider you a wonderful leader! Hope you don’t mind, I told my students at the University of Denver about your interviewing strategy. If there is anything I can help you with, please don’t hesitate to let me know.”
Contact: (303) 922-9379 or ppadbury_1@msn.com - ask for Sandy
2008-2009
Monday, June 1, 2009
Smart Homeowner Videos by David Bach
Want some advice from a real financial advisor with a proven track record. See and hear David Bach share tips on buying and selling homes. Let me know what YOU think!
Wednesday, May 27, 2009
What About Loans for Homes above $450K?
A friend was wondering about loans for larger homes...When researching what loans are available for homes above conforming limits (any loans above $417,000 per Fannie Mae requirements), I found the rate and closing costs are higher than for conforming loans, but the money is still available.
Here is the scoop, per one of my favorite lenders, Bernie Zanoni of Briston Capital Mortgage:
There are only a few lenders willing to lend above the conforming limits. So we have higher interest rates and higher closing costs on the now tougher to get jumbo loans. So here it is in a nut shell - 10% down on loan limits up to $650k and the rate is a couple of points higher than conforming loans on a 30 year fixed loan with 5 points up front! The next best loan is a 20% down jumbo loan up to 1 million with rates a couple of points higher than conforming loans with regular closing costs and just 1% origination. (Lower costs for more money down...)
So here is the best way to work with things. For 15% down you can use a 1st mortgage up to 417k and use a 2nd mortgage for the balance. Both of these rates would be on the higher range or normal conforming loans. This combination would have normal closing costs and only 1% origination fee on each of the loans. There is a cap on the max loan amount of the 2nd mortgage (HELOC) of $250k depending on credit.
If you want more details, let me know and I'll put you in touch with Bernie!
Here is the scoop, per one of my favorite lenders, Bernie Zanoni of Briston Capital Mortgage:
There are only a few lenders willing to lend above the conforming limits. So we have higher interest rates and higher closing costs on the now tougher to get jumbo loans. So here it is in a nut shell - 10% down on loan limits up to $650k and the rate is a couple of points higher than conforming loans on a 30 year fixed loan with 5 points up front! The next best loan is a 20% down jumbo loan up to 1 million with rates a couple of points higher than conforming loans with regular closing costs and just 1% origination. (Lower costs for more money down...)
So here is the best way to work with things. For 15% down you can use a 1st mortgage up to 417k and use a 2nd mortgage for the balance. Both of these rates would be on the higher range or normal conforming loans. This combination would have normal closing costs and only 1% origination fee on each of the loans. There is a cap on the max loan amount of the 2nd mortgage (HELOC) of $250k depending on credit.
If you want more details, let me know and I'll put you in touch with Bernie!
Wednesday, May 20, 2009
Denver Identified as top city in US for Recovery
Great news for our Denver Metro area from the Today Show's real estate analyst. We're in the trough and on our way out. How fast will vary from neighborhood to neighborhood since a recent increase in the number of bpo (broker price opinions) indicates we still have many distressed homes in the market.
Use First Time Homebuyer Tax Credit for Down Payment
Tax Credit Can Be Used For Down Payment.
Tax Credit Can Be Used for Down Payment
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change. "We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment," Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..He says FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.Other Solutions for Today's MarketDuring his address at the summit, Donovan went on to say that the Obama administration plans to further stabilize the housing market. "I do think we have some early signs that the market overall is stabilizing," Donovan says. "Since January we've seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate."The morning session included a panel discussion that was moderated by CNBC's Ron Insana. Panelists examined cutting-edge solutions necessary to promote and preserve homeownership and real estate development, stimulate the economy, and protect the nation's taxpayers. They also shared their ideas on what the role and responsibility of the federal government is in the revitalization effort. "Right now the Federal Reserve is the market," said panelist Jay Brinkman, chief economist for the Mortgage Bankers Association. "What will be the effect when the Fed stops buying?" Brinkman explained that an exit strategy must be planned for the long-term; the federal government cannot continue to support the mortgage markets indefinitely."We are thrilled that so many high-caliber individuals were able to join us today at this important meeting to promote stability in the housing market and the U.S. economy," said NAR President Charles McMillan. "We look forward to an ongoing dialogue and action toward this goal, during our midyear meetings this week and beyond."The real estate summit is part of the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo. During the week ending May 16, more than 8,500 REALTORS® will attend meetings, visit lawmakers and inspire action on Capitol Hill.
Source: NAR
For first time homebuyers we have an unprecedented government gift! This means FHA borrowers will have a zero down loan in effect! Exactly when you'll be able to use it is not clear. Now that the announcement has been made, the institutions and government need to work out the specific way to transfer money at closing from the government to your closing! What we do know is you must close on your new home before 1 Dec 2009!
Feel free to call me for more information and details on how you or someone you know can benefit!
Tax Credit Can Be Used for Down Payment
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change. "We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment," Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..He says FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.Other Solutions for Today's MarketDuring his address at the summit, Donovan went on to say that the Obama administration plans to further stabilize the housing market. "I do think we have some early signs that the market overall is stabilizing," Donovan says. "Since January we've seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate."The morning session included a panel discussion that was moderated by CNBC's Ron Insana. Panelists examined cutting-edge solutions necessary to promote and preserve homeownership and real estate development, stimulate the economy, and protect the nation's taxpayers. They also shared their ideas on what the role and responsibility of the federal government is in the revitalization effort. "Right now the Federal Reserve is the market," said panelist Jay Brinkman, chief economist for the Mortgage Bankers Association. "What will be the effect when the Fed stops buying?" Brinkman explained that an exit strategy must be planned for the long-term; the federal government cannot continue to support the mortgage markets indefinitely."We are thrilled that so many high-caliber individuals were able to join us today at this important meeting to promote stability in the housing market and the U.S. economy," said NAR President Charles McMillan. "We look forward to an ongoing dialogue and action toward this goal, during our midyear meetings this week and beyond."The real estate summit is part of the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo. During the week ending May 16, more than 8,500 REALTORS® will attend meetings, visit lawmakers and inspire action on Capitol Hill.
Source: NAR
For first time homebuyers we have an unprecedented government gift! This means FHA borrowers will have a zero down loan in effect! Exactly when you'll be able to use it is not clear. Now that the announcement has been made, the institutions and government need to work out the specific way to transfer money at closing from the government to your closing! What we do know is you must close on your new home before 1 Dec 2009!
Feel free to call me for more information and details on how you or someone you know can benefit!
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