Tag Archives: Closing costs

Should I Buy A Home If Interest Rates Rise?

10 Jan

Should I Buy A Home If Interest Rates Rise?

You may ask this question and get ten different answers.    Just because the interest rates have risen does not necessarily mean it is not the right time to buy.  If you hold off, this mistake could cost you thousands.

So how do you know when it’s ok to buy a home if you know the interest rates are rising?  Well, that is a good question and here are some facts to help you sort through it all.

1.  Consider specialty loan options

• Hybrid mortgages – this is a mortgage loan that will offer a very low rate for a fixed amount of time, usually 5-7 years, then the loan will revert to an adjustable rate mortgage.  This sounds a bit risky; however, if you are not planning on staying in your current home for more than five years, this is a fantastic option for you

• An ARM  loan with an option that would allow it to be converted to a fixed rate loan when at the borrowers discretion

• An interest only loan – this is a loan that requires you to make payments to the interest only for a set number of years, then it converts to an amortized loan with interest and principal payments each month

2.  Talk to a tax advisor – before you do anything, make sure you talk to your tax advisor about whether or not one of these types of loans is right for you.

3.  Ask for a Buy Down – this is a fee paid at closing to get a lower interest rate.  Sometimes a motivated seller will be willing to paying some if not all of the buy down just to get the deal.

4.  Ask the seller to pay some or all of the closing costs.  Quite frequently the seller’s closing costs are used as a write off by the buyer.  (Check with your tax advisor before doing this)

5.  Lower prices mean lower loan amounts so don’t let higher interest rates chase you off.  With some skillful negotiating your realtor can help you secure an unbelievable deal  saving you loads of money.  So a high interest rate does not have to mean more money.

Remember, many people drop out of the home buying market when the interest rates go up, but as you can see this could be a very costly mistake.  Some of the best mortgage loans come about when the lenders are competing for your business and when sellers are realizing that there are more homes for sale than there are buyers.

So talk with your realtor and come up with a game plan to help you find your dream home.  Don’t let rising interest rates stop you, use it to your advantage!

Having the right real estate agent means having an agent who is committed to helping you buy, sell or rent  your home with the highest level of expertise in your local market. This commitment level has helped me build a remarkable track record of delivering results.

Nothing is more exciting to me than the gratifying feeling I get from helping people meet their real estate needs. You can count on me to always do what’s in your best interest. I pride myself on being honest, trustworthy, and knowledgeable in the real estate market. I know how important it is to find your dream home. Therefore I will make it my responsibility to help you achieve those goals.

Whether you are an experienced investor or a first time buyer, I can help you in finding the property of your dreams. Please feel free to browse my website or let me guide you every step of the way by calling or e-mailing me to set up an appointment today.

About the Author:  Millie Gil has been a successful Licensed Real Estate agent for over 25 years in Florida.  Millie is Vice President of Bold Real Estate Group, a boutique agency committed to concierge personalized service for discerning buyers, sellers and renters of residential and commercial properties.  For more information please forward your request to communityinfo@comcast.net

View thousands of new and resale homes:  www.Northeast-Florida-Relocation.comwww.BoldRealEstateGroup.com,  www.NewYork-Florida-RealEstate.com, www.PGAVillage-Homes.com a Golf Style Private Community,  www.TheCascadesAtStLucieWest.com  a 55+ Resort Lifestyle Community, www.HealthcareRelocationServices.com

Avoiding Mortgage Junk Fees

12 Sep

Avoiding Mortgage Junk Fees.  If you look down your long, long list of closing costs at your lender’s office, you probably won’t find one labeled “junk.”

That’s because lenders don’t like to admit that some of the charges they’re passing off as “necessary’ are really “junk”.
Actually, they aren’t junk to the lender because they represent an important stream of profit. But we certainly don’t need those added fees. Junk fees are a good place to negotiate with the lender for a better deal. But the time to negotiate is before you sign the loan application. Once you’ve signed, you’ve sealed your deal for better or worse.

The lender does have legitimate costs that are passed along to you, the borrower, in the form of closing costs and fees; however, by the time you see the fees they’ve been inflated. For example, if the lender has an electronic appraisal done on your property, it might cost him $25, but he’ll charge you $125.

Lenders are required to give you a good faith estimate of your closing costs when you first contact them, but it’s not required to be completely accurate! So they often give a lower estimate to get your business, and then increase fees once you have committed. Thankfully, new mortgage legislation has limited the amount by which your fees can change once disclosed.

Inflated costs are  just one example of junk fees and costs that get built into your loan without you knowing it. A more egregious example is the charges for made-up things, like “underwriting fees” or “document preparation.”

• A lender will tell you an underwriting fee is the cost that they incur to underwrite your loan. They need someone to go through your whole package to make sure it complies with secondary underwriting requirements.

But an underwriting fee is purely a junk fee because the whole point of applying for the loan is so that it gets underwritten. You’re being charged an extra fee on top of all the other fees to do exactly the same thing.

• Another common junk fee is the cost for document preparation. Basically, computer programs print all the necessary paperwork at the touch of a button. Someone will key in the necessary information. But again, underwriting the loan and preparing the paperwork is within the general scope of, well, getting the loan approved for you.

The problem with junk fees is that they all sound so legitimate. It’s difficult to tell what’s real and what isn’t. As the borrower, you’re entitled to an explanation of each and every charge in a way you can understand. If the lender throws some jargon your way, stop and ask for a detailed explanation.

To avoid the problem of bait and switch, talk to several lenders, and don’t just compare interest rates — compare fees.

About the Author:  Millie Gil has been a successful Florida Licensed Real Estate agent for over 25 years.  Millie is Vice President of Bold Real Estate Group, a boutique agency committed to concierge personalized service for discerning buyers, sellers and renters of residential and commercial properties.  For real estate service and information please forward your request to communityinfo@comcast.net

View thousands of listings  www.Northeast-Florida-Relocation.comwww.BoldRealEstateGroup.com,  www.NewYork-Florida-RealEstate.com, www.PGAVillage-Homes.com, www.TheCascadesAtStLucieWest.com, www.HealthcareRelocationServices.com

The benefits of owner financing

29 Aug

There are many benefits for doing an owner-carry installment sale as opposed to conventional financing for both the buyer and seller. Sometimes this type of transaction may benefit only one or the other, but in most cases this contract is “Win/Win” for both parties.

Benefits for the Seller

Most sellers of real property insist on the highest price and all cash. Sellers want a fast closing with little hassle. Sellers also want to pay as little taxes as possible on the gains incurred. In many cases, the seller can have most of his needs satisfied by an installment sale rather than a traditional cash sale. Let’s look at these needs one by one.

1. Highest Price. There is no doubt that a seller can insist on and receive the highest price when offering flexible owner-finance terms. In many cases, the seller can receive more than the fair market value of the property by offering these “soft” terms. People are always willing to pay a premium for non-qualifying financing.

2. Cash. Nearly ever seller says he wants all cash, but few need it. What the typical seller wants is the most net cash from the deal. Often, the seller has to pay closing costs, title insurance, broker fees and the balance of the existing financing. In addition, there may be capital gains tax due to Uncle Sam. In many cases, the sale of a property by an installment sale will net the seller more future yield than any source from which the cash proceeds were reinvested.

3. Fast Closing. Nothing holds up a sale more than new lender financing. In some areas of the country, it can take months for a buyer to qualify and close a new loan to purchase your property. Since most standard real estate contracts contain a financing contingency, you may end up back at square one if your buyer does not qualify. Furthermore, if your house is not particularly nice or unique, it may take you some time to even find an interested buyer. Since you are competing with all of the other houses for sale, you may need to spend thousands of dollars in paint, new carpet and landscaping just getting the house ready for the market.

There are very few “assumable” loans and few sellers are offering “soft terms.” Thus, an owner-carry sale makes your house unique. Furthermore, an owner-carry transaction can be consummated in a matter of days, since there is no appraisal, underwriting survey involved.

4. Tax Savings. On an installment sale, you only pay gains to the extent you receive payments each year. This can be particularly advantageous if you have owned the property for several years. Furthermore, you can combine the installment sale with a Tax-Deferred Exchange for further savings.

As you can see, the installment sale provides many advantages to the seller of real property. Let us now turn to the advantages for the buyer.

Advantages for the Buyer

1. Easy Qualification. The buyer, in many cases, prefers an installment sale to conventional financing because it does not require traditional bank income and credit approval. The buyer may have poor credit because of a divorce or recent bankruptcy. He may be self-employed and cannot prove income. He may be new to his job and cannot meet strict lender guidelines. Even if he could qualify for a loan, the rate will be astronomical if he has poor credit. Furthermore, few conventional lenders offer fixed interest rate loans to people with a poor credit rating.
As you can see, there are many reasons why a buyer cannot (or will not) qualify for a conventional bank loan. The installment sale becomes the perfect solution for him.

2. Credit Rating. An installment sale may give the buyer a chance to improve his credit rating by owning a home and making payments timely.

3. No Loan Costs. One of the biggest benefits for the buyer is that they do not have to pay the costs associated with conventional loans. Points, origination fees, underwriting charges, appraisal, credit reports, title insurance and the plethora of other “junk” fees charged by conventional lenders can amount to thousands of dollars at closing. The buyer is free from these with an owner-carry installment sale.

4. Fast Closing. A buyer can close and move into a property within days, since there is no third party lender holding up the transaction.

Despite the elevated purchase price and interest rate, there are many benefits to a buyer who engages in an installment sale transaction.

About the Author: Millie Gil has been a successful Licensed Real Estate agent for over 25 years in Florida.  Millie is Vice President of Bold Real Estate Group, a boutique agency committed to concierge personalized service for discerning buyers, sellers and renters of residential and commercial properties.  For more information please forward your request to communityinfo@comcast.net

View thousands of listings  www.Northeast-Florida-Relocation.comwww.BoldRealEstateGroup.com,  www.NewYork-Florida-RealEstate.com, www.PGAVillage-Homes.com, www.TheCascadesAtStLucieWest.com, www.HealthcareRelocationServices.com

Home | Homes For Sale | Homes Short Sale | Search Foreclosures | Open House | Homes For Rent | Renter’s Insurance | Cascades Resources | Cascades Events | Community Tour | Home Virtual Tour | Driving Directions | Cascades Q & A | Cascades Floorplans | Cascades HOA | Community News | Community Providers | Cascades BLOG | Sign-up for a Tour! | Buyer’s Resources | Dream Home Finder | Search MLS | Home Inspection | Home Warranty | Florida Relocation | Property Taxes | Tax Estimator | Insurance Quote | Buy A Short Sale | Seller’s Resource | Market Analysis | Short Sale Inquiry | Our Commitment | Outbound Relocation | Sold Homes Report | Jobs Opportunity | Senior Care Living | Workforce50.com | Retired Brains | Tradition | The Vineyards | Kings Isle 55 Plus | Magnolia Lakes | Sawgrass Lakes | Lake Forest | Lake Charles | Tesoro Homes | The Club SLW | Belmont SLW | Country Club Estates | Lakes At SLW | Viscaya Falls | PGA Village | Verano PGA | Seasons 55 Plus | Tampa Homes | Ocala Homes | Naples Homes | Fort Myers Homes | Jacksonville Homes | Ponte Vedra Homes | Orlando Homes | New Developments | Discovery Tours | Costa Rica Homes | Real Estate Glossary | Golf Course Finder | FREE Moving Quote | Market eNewsletter | Currency Converter | FREE Credit Score | Airport & Flights | About St. Lucie West | Connect Utilities | Global News | Books WebStore | Retirement Homes By State | Local Hospitals | Dining Guide | St. Lucie County Profile | New Developments | Cost of Living Data | Taxes by State | For Buyers | For Sellers | Homeowners | Mortgage Calculator | Mortgage Rates | Loan Quote | Get Pre-Approved | Mortgage Articles | Lending Sources | St. Lucie County | Martin County | Palm Beach County | Indian River | Broward County | Brevard County | Okeechobee County | Miami-Dade County | Referral Network | Real Estate Career | Real Estate School | Guest Bloggers | Contact Us | Testimonials | About Us | Our Blog | About Florida | Se Habla Español | Why Use A REALTOR® | North Florida Homes | Privacy Policy | Florida New Developments

Buying your first home in today’s market by Bold Real Estate Group

13 Jul

Buying My First Home in Today’s Market

Today’s real estate market offers some of the best opportunities if you’re buying your first home.  Low interest rates, a plethora of homes for sale and first time homebuyer programs offering tax incentives and enticing down payment and closing cost assistance to help you acquire your dream home.  But the preliminaries can become confusing and often deter many homebuyers.  Your first solution is to always work with a Realtor-Buyers Agent who offers FREE and exclusive Buyer Representation, because professional advice always outweighs a wing and a prayer.

Buying a home is one of the best investments in your life. It provides stability and it will become your primary tangible equity resource in your life.  I’ve always been told that if there is one permanent thing you could want it is a roof over your head.

The current market has its obstacles whereas everyone and anyone could get a mortgage loan two years ago and now the criterion has changed – for the better!  A good, stable and positive credit history is required accompanied by a healthy bank account. Lenders will heavily base their decision for a loan on your credit score and while these guidelines are not cast in stone, a score that is as close to 720 or higher is lined in gold and will get you closer to obtaining your dream home than a score in the mid-600’s.

While credit histories deter many homebuyers now is the time to begin working on improving your credit score.  Sure, it’s true that interest rates will go up some but why keep waiting to fix your credit history?  You just prolong ever becoming a home owner. Just think in a year what you can accomplish; programs will still be intact to help you with down payments and closing costs and your FICO credit score will be higher to qualify you.  And many people always think the worst when it comes to their credit history but until you actually speak to the professionals – a Realtor-Buyer’s Agent and a Lender – you’ll never know what position you’re in for a new home.

Do you really need to act that fast to get into a home?  Yes! Market indicators all suggest that the economy is standing steady but interest rates will undoubtedly not go lower than they are right now which means if you wait another six months to a year to purchase a home you could be looking to pay thousands of dollars more in interest.  This means a larger monthly mortgage payment, more of a down payment and a larger loan package. Not to mention once the real estate markets begin to become more stable home prices will start to inch back up.   Click Mortgage Calculator for quick estimate of mortgage payment.

Two years ago many people could not qualify for a single family home because their income was too low for such high-priced real estate but with today’s new home prices, first time home buyers are in a better position, especially with all the new programs to help you buy.

Every state has some program now that helps with either the down payment or closing costs.  There are guidelines and criteria to meet but for many this means realizing their dream that much quicker.

Understanding all of your options and the value of purchasing now is very important.  Today’s market is so advantageous that you can’t afford NOT to purchase a home.  Talk to a Realtor-Buyer’s Agent quick while homeownership is ripe for the taking!

Single Family Residential Properties

Single Family Residential Properties for Sale in Port Saint Lucie, Florida Between $0 – $100,000
Single Family Residential Properties for Sale in Port Saint Lucie, Florida Between $100,000 – $200,000
Single Family Residential Properties for Sale in Port Saint Lucie, Florida Between $200,000 – $300,000
Single Family Residential Properties for Sale in Port Saint Lucie, Florida Between $300,000 – $400,000
Single Family Residential Properties for Sale in Port Saint Lucie, Florida Between $400,000 – $500,000
Single Family Residential Properties for Sale in Port Saint Lucie, Florida Between $500,000 – $750,000
Single Family Residential Properties for Sale in Port Saint Lucie, Florida Between $750,000 – $1,000,000
Single Family Residential Properties for Sale in Port Saint Lucie, Florida Between $1,000,000 – $1,250,000
Single Family Residential Properties for Sale in Port Saint Lucie, Florida Between $1,250,000 – $1,500,000
Single Family Residential Properties for Sale in Port Saint Lucie, Florida Between $1,500,000 – $1,750,000
Single Family Residential Properties for Sale in Port Saint Lucie, Florida Between $1,750,000 – $2,000,000
Single Family Residential Properties for Sale in Port Saint Lucie, Florida Between $2,000,000 – $2,750,000

About the Author:  Millie Gil has been a successful Licensed Real Estate agent for over 25 years in Florida.  Millie is Vice President of Bold Real Estate Group, a boutique agency committed to concierge personalized service for discerning buyers, sellers and renters of residential and commercial properties.  For more information please forward your request to communityinfo@comcast.net

Servicing Florida Cities:  Port St. Lucie, Palm City, Jensen Beach, Stuart, Vero Beach,  Hutchinson Island, Fort Pierce,  Palm Beach, Jacksonville, Jacksonville Beach, Ponte Vedra Beach, Palm Coast, Neptune Beach, Amelia Island, Atlantic Beach, Fernandina Beach, Saint Johns, Saint Augustine, Daytona Beach, Fleming Island.

%d bloggers like this: