Real Estate Information Archive

Blog

Displaying blog entries 1-8 of 8

Bi-Weekly Mortgage Payments....A Great Way to Save

by Pamela J. Windom, p.c.

    Accelerating your mortgage payoff can save you thousands over the life of your loan. Paying your mortgage on a bi-weekly basis by taking your monthly mortgage payment, dividing it in half and paying it every other week, will result in an extra payment being made toward your principal each year. The faster you pay your loan down, the less money you pay in interest to the lender...which means more money in your pocket in the long run.  Contact your lender to see if this payment option is available to you and start saving today!

To Calculate Your Savings Using Bi-Weekly Payments Visit

http://www.frontdoor.com/Tools/Calculators/Bi-Weekly-Payments.aspx

Time is Ticking on the Tax Credit Deadline

by Pamela J. Windom, p.c.

Time Is Ticking on the Tax Credit Deadline!

Attention:  Folks looking to take advantage of the current $8,000 tax credit for first time home buyers and those looking to buy up and get the $6,500 tax credit, the deadline is soon approaching.  You must be under contract to purchase a home by April 30, 2010 and have your purchase closed by June 30, 2010. 

Call me to see if you can still get

in on the action! 

541-431-6498

Remodel or Move ???

by Pamela J. Windom, p.c.

Boy, is this a loaded question…..so many things to consider

~  Will remodeling accomplish what you really want?         

 Adding space, just for the sake of making room, may not be the solution.  If you are really fed up with specific elements of your home, it's time for a change

~  Budget- What is your overall budget?  Can you get what you want for the money you wish to spend on your remodel? 

Remember, when remodeling you are paying top dollar for new materials and labor.  Could you get these same amenities by purchasing a pre-owned home and pay a fraction of the cost.

A new loan-  Is the interest rate, currently available for a new loan, less than your current rate on your home loan? 

 If there is a significant difference in these 2 interest rates, you could see significant gains over the long run and take the opportunity to enjoy the added amenities of a new home?

Taking out a small second- How high will the interest rate be on the second you take out? 

It pays to know exactly how much that second is going to cost you.  Perhaps you may want to consider refinancing with cash out at close of escrow to fund your remodel project.

How much can your neighborhood take?-  Are you going to end up being the biggest house on the block? 

Over building in your current neighborhood could wreck havoc when it is time for you to sell….think ahead.

The disruption of remodeling-  Remodeling takes time and often means major adjustments to your lifestyle during the remodel.  Are you going to be without a kitchen for several weeks….just how fast can you get a roof put back on after changing your roofline?

Timing-  Is your family growing?  Do you have to consider the possibility of parents moving in with you? 

Take a look at some of the possibilities in your life.

Do payments matter?  Have you suddenly come into a large sum of inheritance that you can use to help finance the project or a new purchase?  How will your payments be affected? 

Consider all of the options

In a buyer’s market vs. in a seller’s market?

It’s all a game of percentages….In a buyer’s market you have more buying power with your dollar, while the opposite is true in a seller’s market.  Buying up in a buyer’s market can present real opportunity.

Mortgage Calculator....How Can This Be Helpful to You???

by Pamela J. Windom, p.c.

Real Estate lingo tends to be baffling at times, but understanding the meaning behind the terminology can be of great benefit.  From time to time, I will address different terminology that is not only beneficial to know, but also understand, so you can put it to good use in formulating a plan to meet your real estate needs. 

Today's Term.....Mortgage Calculator

          A mortgage calculator is a resource that can be very helpful to you as you begin to ask questions about purchasing a home and/or refinancing your current real estate holdings.  It is a quick and easy place to start to determine what your approximate payment might be and how changing interest rates can affect your payments.  Another great feature of a mortgage calculator, is that you can determine what the effect will be should you choose to make extra payments against the principal on your loan.  One extra payment made per year against your principal, can make a giant difference in the total cost of your real estate acquisition. 

          Visit http://www.teamirwin.com/Calculators.aspx   Have fun…..plug in some different numbers and try some different scenarios, to see what the difference may truly make to your financial future.

Refinancing….Yes, No or Maybe?

by Pamela J. Windom, p.c.

 Justifications for refinancing your mortgage may include:

          ~  Lowering your current interest rate on your mortgage, thereby reducing monthly payment amounts and the overall cost of your purchase

          ~  Reducing the term or length of your loan…..this can save you thousands of dollars in potential interest paid over the life of your loan

          ~  Consolidation of your debt…..you can consolidate all of your debt at a lower interest rate and write your new mortgage interest payment off on your taxes

 

While all of these considerations are very legitimate reasons to refinance, you must consider the costs associated with the refinancing process.  Loan origination fees, an appraisal, processing fees, title fees….they all add up.  Depending upon your circumstances, if you can get an interest rate at least a full point lower than what you currently have, it is worth making the call to a qualified lender to see what refinancing may mean to your financial future.

 

Keep these questions in mind when you make the call:

~  Do I have the equity in my home to allow for the refinance? (This is especially important to ask if you plan to pay off current outstanding debt, in an effort to consolidate your debt.)

          ~  How much can I lower my current monthly payment?

          ~  How long do I plan to stay in my home?

~  How much will I pay in upfront fees to refinance?   and  Can I build some of these costs into the refinance, so that I don’t have to come up with the fees out of pocket?

 

Last, but certainly not least, be sure to consider the following:

How long will it take to recoup the cost of the refinance?

Short Sale….What is it?..... And…… Is it Something You Should Consider?

by Pamela J. Windom, p.c.

          Simply put……..In a short sale situation, a seller’s mortgage lender agrees to accept a payoff less than the balance owed on the loan.  For a variety of reasons, a seller may find themselves in a situation where a short sale may be the best option. 

          It is important to note that a short sale will appear on your credit report showing as a settlement for a lesser amount, not as a debt discharged. This means that your credit will be “less severely” impacted in a short sale situation than in a foreclosure scenario.  A foreclosure will follow you on your credit bureau report  for 10 years and will severely affect your ability to obtain credit.   

         The important window of opportunity is NOW!!!!  (Home purchases made between January 1, 2009 – December 31, 2009.)  Changes in the current tax code regarding taxation on the phantom income earned on a short sale make now the perfect time to explore a short sale.  Contact your accountant for further details or visit www.irs.gov/pub/irs-pdf/p4681.pdf  ....... either will provide you with details regarding exemption from tax liability that your lender would report on doc 1099C.  Please note **** This is subject to the borrower having a negative net worth.  Read more about this exemption at the IRS website noted above.

Knowing Your Options During Difficult Times is a Must!

by Pamela J. Windom, p.c.

         Home ownership comes with certain responsibilities...payments, upkeep and the like.  We enter into it with optimism and in most cases, great pride, knowing that we have worked hard and met one of those milestone goals in our life.  It is a momentous occasion when one actually takes title, is handed the keys and enters their home for the first time.  While everyone shares these final steps of the journey in common, once you cross the threshold, the tale of home ownership becomes an individual journey.  Life happens, circumstances change and what once seemed like the ideal situation can become the source of great stress.

         Some of the most frequent situations we as realtors come upon, that can change your circumstances in the blink of an eye, are loss of a job, divorce, death and medical emergencies.  In our current economy, more and more people are finding that their jobs are being cut and they do not have a contingency plan in place that can bridge the gap until they secure a new job.  It is becoming a more prevalent scenario…..bad things are happening to good people who have had the best of intentions.

         If you find yourself unable to make your house payment, regardless of the reason, I first and foremost encourage you to contact your mortgage company to see if they have options available that will help you avoid foreclosure.  A foreclosure will follow you for years on your credit record. 

        Because of the current economic situation, many lenders are finding creative ways to help keep people in their homes.  The bottom line is... lenders are in the business of loaning money, not owning real estate.  They really do not want to take possession of your home and carry it on their books until it can be sold.  Options that are currently coming to light are reductions in interest rates, delayed payment options, reductions in loan balances and the willingness of lenders to consider having folks sell their homes as a short sale.  Speak with your lender!!!!  Did I say that loudly enough…..SPEAK WITH YOUR LENDER!!!!  Do not stick your head in the sand.  Find out what your options are.  Take control of the situation and find out what will cause the least amount of damage to your future credit rating.  If a short sale is the best scenario for you, call me (541-431-6498).  You need a professional to guide you through the process and I will be happy to help.    

Wow.....Look What's New !!!! FHA Limits and Tax Credits

by Pamela J. Windom, p.c.

Purchasers that are new to home ownership (haven't owned a home in the past 3 years) can begin to take advantage of the "up to" $8,000 tax credit with no payback requirement,  made available by the federal government.  Visit the following link for more details:  http://www.irs.gov/newsroom/article/0,,id=204672,00.html   What an incredible opportunity to get into the market while prices are down, inventory is high and interest rates are fantastic!  Home ownership is an investment in your future, that comes with immediate benefits!

Another great piece of information to come out in the last couple of days is that FHA lending limits have just been raised back up to what they were near the end of 2008. 

Per the HUD Website, new FHA loan limits are as follows.......

Single Family Dwelling:  $343,750

Two Family Dwelling:  $440,050

Three Family Dwelling:  $531,900 

If you have explored a new home purchase or re-finance option within the last 2 months and FHA was not an option, please check back with your lender.  There may now be funds available to assist you.

As you can see, things are changing at a rapid pace.  Stay tuned.  More to come..........

Displaying blog entries 1-8 of 8

Syndication

Categories

Archives

541-431-6480