Mortgage Rates Fall Even Lower This Week
If you are thinking of Buying or Selling a beach home/condo at the Shore, a Resort Real Estate Specialist is your best bet for accurate information. Licensed in Ocean City MD and the DE Coastal Resort Areas. I will help you through your transaction if you decide that NOW is the right time for you to Buy or Sell. COLDWELL BANKER RESIDENTIAL BROKERAGE. Email: Susan@ShoreFun4U.com Go to: https://OceanCityMD-BeachHomes4sale.com/
Saturday, January 24, 2015
Mortgage Rates Fall Even Lower This Week
Now is the time to consider a starter beach vacation home in Ocean City MD or Coastal DE. Don't look back years later and 20-20 hindsite ---- "I should have bought when interest rates were at their lowest" :)
Mortgage Rates Fall Even Lower This Week
Mortgage Rates Fall Even Lower This Week
Wednesday, January 21, 2015
3 Questions to Ask Before Buying A Home
3 Questions to Ask Before Buying a Home
If you are thinking about purchasing a home right now, you are surely getting a lot of advice. Though your friends and family have your best interests at heart, they may not be fully aware of your needs and what is currently happening in real estate. Let’s look at whether or not now is actually a good time for you to buy a home.
There are three questions you should ask before purchasing in today’s market:
1. Why am I buying a home in the first place?
This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with finances. A study by the Joint Center for Housing Studies at Harvard University reveals that the four major reasons people buy a home have nothing to do with money:
- A good place to raise children and for them to get a good education
- A place where you and your family feel safe
- More space for you and your family
- Control of the space
What non-financial benefits will you and your family derive from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.
2. Where are home values headed?
When looking at future housing values, Home Price Expectation Survey provides a fair assessment. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.
Here is what the experts projected in the latest survey:
- Home values will appreciate by 4% in 2015.
- The cumulative appreciation will be 23.5% by 2019.
- Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of over 15.1% by 2019.
3. Where are mortgage interest rates headed?
A buyer must be concerned about more than just prices. The ‘long term cost’ of a home can be dramatically impacted by an increase in mortgage rates.
The Mortgage Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac have all projected that mortgage interest rates will increase by approximately one full percentage over the next twelve months.
Bottom Line
Only you and your family can know for certain the right time to purchase a home. Answering these questions will help you make that decision.
Questions about a home in Ocean City MD or Coastal DE, contact me and I will be your real estate beach specialist.
Saturday, January 17, 2015
Wednesday, January 14, 2015
New Fannie Mae Appraisal Program: Helping or Hurting?
New Fannie Mae Appraisal Program:
Helping or Hurting?
by The KCM Crew on January
14, 2015 in For Buyers, For Sellers
Every home must be
sold TWICE! Once to the buyer, and once to the bank appraiser if a mortgage is
involved.
The second sale may have just become more
difficult.
A new program announced by Fannie Mae may slow down the home-sale closing
process by causing more disputes over prices between sellers and buyers.
“Starting Jan. 26, Fannie plans
to offer mortgage lenders access to proprietary home valuation databases that
they can use to assess the accuracy and risks posed by the reports submitted by
appraisers.”
“The Fannie data will flag
possible errors in the appraiser’s work before the lender commits to fund the
loan, will score the appraisal for overall risk of inaccuracy and may provide
as many as 20 alternative “comps” — properties in the area that have sold
recently and are roughly comparable to the house the lender is considering for
financing but were not used by the appraiser.”
Using the additional
information provided by Fannie Mae, the lender can then ask for an explanation
from the appraisal company for any discrepancies and request an amended
appraisal.
This added step in the
process of determining the price of the home to be bought/sold, could add time
to the closing process and cost to the appraisal for the additional work.
Why is this happening?
Fannie Mae wants
lenders to make informed decisions when agreeing to the amount of a loan that a
buyer will be approved for.
“Excessive valuations create the
risk of future losses to lenders and investors if the borrower defaults and the
house goes to foreclosure.”
What is the process now?
As a seller:
You’ve put your house
on the market, picked an agent who has helped you determine that the best price
to list your home for is $250,000, and found a buyer willing to pay that price.
The appraiser comes to the home and agrees your home is worth the asking price
and writes their report. Everything is working perfectly!
As a buyer:
You’ve found your
dream home, in the right neighborhood, in the right school district, with the
perfect yard, at the high end of your budget, but all the pluses are worth it.
You agree on a price and start daydreaming about living in your new home.
What happens after January 26th?
The lender submits the
appraisal report to the new Fannie Mae program and they come back with “lower-risk comps” that value the home at $230,000. The lender
then turns to the appraisal company to justify the $20,000 difference, adding
time and frustration to the process.
If the lender does not
agree with the reasons for the price difference they will not lend the buyer
the amount they need to purchase their dream home and the amicable, agreeable
sale turns into a heated justification of the higher price. The buyer may even
have to give up on the home if the funding isn’t there.
“The bottom line, appraisers say,
is this could lead to delays to closings and higher costs, as well as a
depression of prices in markets where prices are rising.
Appraisers complain that if they
have to justify every step of their comps for their valuation, rather than
those coming from the one-size-fits-all evaluation from Fannie, it will delay
closing, throw off buyer and seller timetables, and delay real estate broker
commissions.”
Bottom Line
The fear of some real
estate practitioners is that if appraisers feel as though they are constantly
being second-guessed, they may become more conservative in their assessments,
impacting home values and slowing growth in the market.
Tuesday, January 13, 2015
4 Reasons to Buy a Beach Vacation Home Before Spring :)
4 Reasons to Buy Before Spring!
The holiday season is behind us, time to focus on what exciting new experiences 2015 can bring! If you are planning on becoming a homeowner, or moving up to the home of your dreams in 2015, here are four great reasons to consider buying a home now, instead of waiting until spring.
1. Prices Will Continue to Rise
The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report projects appreciation in home values over the next five years to be between 15.1% (most pessimistic) and 32.8% (most optimistic).
The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.
2. Mortgage Interest Rates Are Projected to Increase
Although Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have softened recently, most experts predict that they will begin to rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison projecting that rates will be up almost a full percentage point by the end of 2015.
An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.
3. Either Way You are Paying a Mortgage
As a paper from the Joint Center for Housing Studies at Harvard University explains:
“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”
4. It’s Time to Move On with Your Life
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.
But, what if they weren’t? Would you wait?
Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy.
If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.
Monday, January 12, 2015
Maryland Home Credit Program can lower Federal Taxes ... Learn More ...
Maryland HomeCredit Program
Lower Your Federal Taxes, Every Year, For the Life of Your Loan
A Maryland HomeCredit can save a homebuyer tens of thousands of dollars over the life of a home loan, and makes owning a home more affordable. Together with a home loan through the Maryland Department of Housing and Community Development's (DHCD's) Maryland Mortgage Program (MMP), which offers Down Payment Assistance and the certainty of a 30-year fixed interest rate, the State of Maryland is making the dream of sustainable homeownership a reality for more Marylanders than ever.
How to Get a Maryland HomeCredit
Homebuyers apply for a Maryland HomeCredit through an approved mortgage lender. The Lender will confirm the borrowers' eligibility for this program, and submit an application to the Maryland Department of Housing and Community Development (DHCD).
Who Can Get a Maryland HomeCredit?
To get a HomeCredit, you must be purchasing a home in Maryland and meet borrowing criteria that include:
- You must meet the same income limits and home purchase price limits as the Maryland Mortgage Program;
- You cannot have owned a home during the past three (3) years, UNLESS you are purchasing in aTargeted Area;
- The home you purchase must be your primary residence.
NOTE - the Maryland HomeCredit Program is not available for refinances or existing homeowners
READ THE ENTIRE ARTICLE: http://mmp.maryland.gov/Pages/MDHomeCredit.aspx
Sunday, January 11, 2015
Guide to Finding a Dream Rental - at the beach or anywhere
Know What You Can Afford
Whether you’re a first-time renter or an experienced renter, you must know what fits your budget. Learn how you can maximize your money to ensure you don’t over extend yourself.Identify Your Rental Personality
Before you even fill out an application, know what kind of rental might suit you. We have some ideas to help you narrow your criteria.Make Your Rental Search Mobile
So you’re ready to hit the road and look for a place. Before you do, make sure to download the realtor.com® Rental App. After you’ve installed it, we have tips and tricks to make your mobile search a breeze.Know What to Ask a Potential Landlord
Find something you like? Before you walk in the door, ensure you make a great first impression with a landlord. Here are some surprising facts landlords wish you knew.Scope Out the ‘Hood
Make sure your rental is in a good area. Read up on red flags to be aware of when looking at a place in an unfamiliar neighborhood.Make Your Application Shine
Don’t get shut out from a place you love. Once you’ve identified a dream rental, know how to make a good impression and avoid getting rejected by a landlord.Read Your Rental Agreement Carefully
Before you sign on the dotted line, know what’s in your rental agreement. Here are a few handy tips on what to ask your landlord prior to sealing the deal.Decide Whether You Need Renter’s Insurance
So you’re all moved in. But what about all your precious possessions? Without a homeowner’s policy, should you be concerned? Learn all about renter’s insurance.Know Your Rights as a Renter
If trouble arises with your landlord, how should you handle it? Learn what to do if you run into landlord problems.Saturday, January 10, 2015
Friday, January 9, 2015
Ocean City Housing Market Data
OCEAN CITY — When assessment
notices for over 32,000 residential and commercial properties in Ocean City hit
mailboxes this week, many owners saw their values hold steady or even decline
somewhat, but average resort property values increased overall for the first
time in nine years.
notices for over 32,000 residential and commercial properties in Ocean City hit
mailboxes this week, many owners saw their values hold steady or even decline
somewhat, but average resort property values increased overall for the first
time in nine years.
Ocean City Housing Market Data
Wednesday, January 7, 2015
Now is the best time to buy a home at the Ocean City MD or Coastal DE Shore.
4 Reasons to Buy Before Spring!
by The KCM Crew on January
7, 2015 in
The holiday season is
behind us, time to focus on what exciting new experiences 2015 can bring! If
you are planning on becoming a homeowner, or moving up to the home of your
dreams in 2015, here are four great reasons to consider buying a home now,
instead of waiting until spring.
1. Prices Will Continue to Rise
The Home Price
Expectation Survey polls a distinguished panel of over 100 economists,
investment strategists, and housing market analysts. Their most recent report
projects appreciation in home values over the next five years to be between
15.1% (most pessimistic) and 32.8% (most optimistic).
The bottom in home
prices has come and gone. Home values will continue to appreciate for years.
Waiting no longer makes sense.
2. Mortgage Interest Rates Are Projected to
Increase
Although Freddie Mac’s
Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage
have softened recently, most experts predict that they will begin to rise over
the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac
& the National Association of Realtors are in unison projecting that rates
will be up almost a full percentage point by the end of 2015.
An increase in rates
will impact YOUR monthly mortgage payment. Your housing expense will be more a
year from now if a mortgage is necessary to purchase your next home.
3. Either Way You are Paying a Mortgage
As a paper from the Joint Center for
Housing Studies at Harvard University explains:
“Households must consume housing
whether they own or rent. Not even accounting for more favorable tax treatment
of owning, homeowners pay debt service to pay down their own principal while
households that rent pay down the principal of a landlord plus a rate of
return. That’s yet another reason owning often does—as Americans intuit—end up
making more financial sense than renting.”
4. It’s Time to Move On with Your Life
The ‘cost’ of a home
is determined by two major components: the price of the home and the current
mortgage rate. It appears that both are on the rise.
But, what if they
weren’t? Would you wait?
Look at the actual
reason you are buying and decide whether it is worth waiting. Whether you want
to have a great place for your children to grow up, you want your family to be
safer or you just want to have control over renovations, maybe it is time to buy.
If the right thing for
you and your family is to purchase a home this year, buying sooner rather than
later could lead to substantial savings.
Subscribe to:
Posts (Atom)