real estate information
Why It STILL Makes Sense to Buy a House by Moving Authorities (.com)
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Remodeling? Exterior Improvements Give More Bang for the Buck
Exterior improvements give more of a return when remodeling
There is an annual report that examines the cost versus value for home remodeling. The report is helpful for those who are considering making improvements to their homes, especially if their home is one that they consider selling in the near future. Historically, bedrooms and bathrooms are where people consider spending their money but the return on the remodel investment is not necessarily there.
According to the 2009 Remodeling Cost vs. Value Report the best return for your money are exterior improvements that often are lower cost projects to begin with. Adding decks, replacing siding, new doors and windows are among projects that recoup the most money when re-selling a home. The return on these projects is typically 80% or more.
The annual report shows how important first impressions are. If you are considering selling your home make sure that the exterior is as eye catching as it can be.
Click here to learn more about remodeling costs versus value at The National Association of Realtors’ website.
Home Affordable Refinance Program Can Help Those Whose Home Values Have Dropped
The Home Affordable Refinance program can help those whose home values have dropped
The Home Affordable Refinance program was designed to help home owners lower their monthly payments while at the same time securing lower interest rate mortgages. The program is aimed at helping home owners whose mortgage loans are more than the value of their home. The program had a value set at 105% and under the Obama Administration this number has become 125%. The Home Affordable Refinance plan is helping home owners who are underwater with their home values restructure their mortgage payments and ease their financial stress. A few highlights of the Home Affordable Refinance program are:
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A borrower must be current on his payments in order to qualify for the refinance.
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The refinancing must be completed with a Fannie or Freddie approved lender.
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The new loan would come with mortgage insurance.
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Borrowers cannot take cash out.
If you are living in an area where the value of your home has dropped below what it was when you purchased it this could be the program for you.
Check out the Making Home Affordable web site for more information and to see if you qualify.
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Reverse Mortgages Make Sense in the Right Situations
Reverse mortgages can make sense but it is important to understand all of the details
The Reverse Mortgage is a mortgage for older home owners who want to utilize the equity in their property. more and more popular. If you are over 62 and are interested in purchasing real estate or making home improvements or acquiring money for another real estate transaction here is what you need to know about a Reverse Mortgage:
- To qualify a borrower must be 62 years of age or older.
- The Borrower must live in the residence as his primary residence.
- There are no minimum income, asset or credit requirements.
- There are no monthly payments required for as long as the borrowers occupy the residence as their primary residence.
- The Funds can be taken as a lump sum, monthly payments, line of credit or a combination.
- There are no restrictions on how the funds are used.
- Loan proceeds are not considered income and will not affect Medicare or Social Security benefits.
- There are no prepayment penalties.
- Heirs may keep the home by paying off the balance on the reverse mortgage loan.
- All applicants are required by federal regulation to seek 3rd party financial counseling by an approved Department of Housing and Urban Development (HUD) organization.
For more information on Reverse Mortgages visit www.reversemortgage.org.
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Why Use A Realtor?
A Realtor can be an invaluable tool when buying or selling real estate
An often perused question is: Should I use a Realtor or not? People often underestimate Realtors and their importance in a real estate transaction. On both sides of a deal a real estate professional can be an invaluable asset, helping to keep deals together and run more smoothly.
For sellers Realtors are valuable in a number of ways. Realtors know the local market and how to evaluate the price your home should be sold at. A real estate professional will advertise, market and expose your home to other real estate professionals as well as the community at large, not to mention the large customer base that they may already have. A Realtor can help you set your home up for success by helping you present your property in a way that will appeal to potential buyers. Realtors are indispensable when it comes to contracts and making sure each step is carried out to the seller’s best interest.
For buyers a real estate broker can be an incredibly helpful tool when looking for real estate. Not only does a competent Realtor know his local real estate market and what is available but he also knows the community, its amenities and all that it has to offer. A Realtor will write a contract when a buyer has found his ideal property and will help the buyer follow through with each step until closing.
In a nutshell, Realtors are incredibly helpful in diminishing the stresses involved with buying and/or selling real estate. Contact an experienced Realtor in the area you are thinking of buying or selling property in today.
Also posted in Buyers, real estate, Sellers Comments closed
What Exactly is an REO Property?
REO property is often a bargain for the real estate investor
What is REO property? REO (real estate owned) is property which has been taken back by the lender. REO properties typically sell for less than comparable real estate listings as the lender usually wants to recoup the value of the loan which is traditionally less than the valueof the property. The differences between REO property and foreclosure or short sale property are:
- REO has already been acquired by the lender typically after a failed foreclosure sale or foreclosure auction.
- The REO is owned by the bank (or lending institution) and is listed as an asset on their balance sheet.
- The original home owner is no longer in the picture and the property is for sale.
The downside of REO property is that an REO property is typically not well-maintained by the financial institution that owns it. The positive side of an REO is that a real estate investor or buyer can often purchase the property at a distinctively lower price.
For more information on REO property click here.
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On the Importance of Good Title
Here’s a story shared with us by the good people at Metropolitan Title:
If They Had Only Known
With all the uncertainty in today’s real estate market, homebuyers can be certain that purchasing an Owner’s Title Policy is a solid investment that will provide vital protection against losses should a problem with the title arise.
There are two types of title insurance: owner’s title insurance, called an Owner’s Policy; and lender’s title insurance, called a Loan Policy. Most lenders require a Loan Policy when they issue you a loan, and the fee is usually based on the dollar amount of your loan. It only protects the lender’s interests in the property. It does not protect the buyer.
A recent news article tells of a homebuyer who purchased a home on a land contract and made monthly payments of $1500 to the seller until they were able to secure a loan from a national lender. At the time, the lender required the buyer to purchase a Loan Policy. Because it is not required by law to purchase an Owner’s Policy, the homebuyer closed on the home with only the lender’s interest being protected by the Loan Policy.
Several years later, the owners of the home were notified that their house was being foreclosed on and the sale date was fast approaching. How could this have happened? As it turns out, there was a prior loan on the home that was never paid off by the previous owner. Because the current lender had required a Loan Policy, their interest in the property was covered. Had the current owners invested in an Owner’s Policy, they too would have been covered. Unfortunately, without title insurance, they lost their home. Additionally, the resulting foreclosure may adversely affect their credit standing for years to come.
The homebuyers in the story above stated, “We didn’t buy title insurance. We were first-time homebuyers. Had we known about title insurance, [we] definitely would have gotten it.” Many homeowners mistakenly think that because a title search has been done on the property their interest is protected.
One thing is certain…If more homebuyers were aware of the protection an Owner’s Title Policy provides, they would purchase one, andeliminate the unnecessary risk of losing their home.