Let's Talk Real Estate

The Housing and Economic Recovery Act of 2008 is a $300 Billion rescue plan aimed at helping struggling homeowners avoid foreclosure. Although the bill is several hundred pages long and contains a number of far-reaching provisions, here are the top three changes that may benefit you: 1. Tax credits . First-time home buyers who purchase their primary residence between April 8, 2008 and July 1, 2009 are eligible for up to $7,500 in tax credit, provided they haven't owned a home in the last three years and fit certain income parameters. The credit is generous, but it is actually an interest-free loan that is paid back over 15 years at $500 per year when taxes are filed. 2. Larger loans at lower rates . This is a great benefit for homeowners with "jumbo" mortgages, which range between $417,000 and $625,000. If you are considering purchasing a home in that price range, this provision may be ideal for you. Please call or email to schedule a meeting to discuss your options. 3.

Buying a home vs. renting is a big decision that takes careful consideration, as most mortgage consultants & realtors will agree. But the rewards of home ownership are great. For many years, purchasing real estate has been considered an extremely profitable investment. It is an achievement that offers a sense of pride, financial stability and potential tax advantages. Yes, there are certain responsibilities associated with owning a home. Landlords will often argue the benefits of renting, and for obvious reason. If you are renting, you're helping them make their mortgage payment. The numbers are staggering if you look at it this way. If you are paying $1,000 per month for an apartment, and you know your rent will increase 5% every year, then over the next five years you will pay your landlord $66,309. If you are currently renting a house, you may be paying much more than that each month. Either way, you gain no equity by shelling out this monthly housing expense and you certain

Most investments pay interest only on the amount you invest. However, Real Estate appreciates on the full value of the property even though you have invested only the amount of your down payment! Historically, Real Estate has shown a consistent growth in value, even when many other investment choices were less stable. Real Estate Makes Sense! Profit from Rental Income - let your tenants pay your mortgage! Increase Your Equity with Improvements - any improvements you choose to make increases the value of your investment Deductible/Depreciable/Deferrable - no investment reduces your taxable income better than real estate! Stable - minimal volatility & minimal risk Build Your Net Worth - as your mortgage is paid down, your equity in the property increases and adds to your net worth Live in Your Investment - one of the few investments that can put a roof over your head if you desire How much has your financial situation improved in the past five years? How much will it improve in the n

FICO® scores were developed by Fair Isaac & Company, Inc. for each of the credit repositories - (Equifax) Beacon®, (Experian formerly TRW) Experian/FICO and (TransUnion) Empirica®. They are simply repository scores meaning they only consider the information contained in a person's credit file; they do not consider a persons income, savings or amount of a down payment for a mortgage. Basically, the scores were designed to assess risk or a person’s likelihood to pay back a loan. The portion of the credit file considered and the weight (as provided by Fair Isaac) are as follows: Previous credit performance (35%) Trade line information specific to payment history Current level of indebtedness (30%) Current balance compared to the high credit Time credit has been in use (15%) Opening date Types of credit available (15%) Installment loans, revolving accounts, debit accounts Pursuit of new credit (less than 5%) Inquiries In their booklet, "Understanding your FICO® score" (av

Selling your home can be an exhausting experience. Last minute walk throughs, inconvenient calls, price adjustment and the possibility of being stuck with two mortgages are real concerns. If you are not completely prepared you could end up losing hundreds, even thousands, of dollars in profit. The difference between a profitable smooth transaction and a break even, miserable experience is often a fine line. In the majority of cases it comes down to the subtle know how of your real estate agent. By utilizing the knowledge of a well-trained real estate agent, you will ensure the quick, profitable sale of your home. Here are 10 important points that sellers should take keep in mind: Refusing to Make Profit Inducing Repairs - It always costs you more money to sell ‘as is' than to make repairs that will increase the value of your home. Even minor improvements will often yield as much as three to five times the repair cost at the time of sale. Your agent will be able to point out what re

Avoiding common mistakes can make the home buying process simpler and less stressful. Keep the following in mind to help improve your home-buying experience: Do Your Homework - Enter the market well-prepared by researching location, school district, deed restrictions and taxes. Don't Try To Make a Shrewd Investment - Focus on finding the best place for you and your family to live rather than trying to predict the real estate market. Location, Location, Location - Consider what part of town you would like to live in and avoid homes located on busy streets. Don't Overlook an Inferior Floor Plan for an Attractive Exterior - Choose a great floor plan over a great exterior because you'll spend far more time inside the house than outside. Don't Overlook How the Home Will Function For Your Family - Consider features that are most important to your family and choose a home that will meet those needs. Always Have the Home Properly Inspected When Buying a Resale - Hire a state-li