Saturday, July 11, 2015

Mortgage Errors: 4 Common Errors and How to Avoid Them

4 Common Mortgage Errors and How to Avoid Them

Prosperity Home Mortgage Latest Rates - a Long & Foster affiliate

By Michael Estrin

RISMEDIA, Saturday, July 11, 2015— (TNS)--Many people make expensive, easily avoidable mistakes when shopping for a mortgage.

“Borrowers who don’t do their homework often end up paying more than they should, and in some cases that extra cost can really hurt,” says Paul Sian, a real estate lawyer and REALTOR® in Cincinnati. A study from the Consumer Financial Protection Bureau concludes that many consumers don’t shop for mortgages, and they tend to get their mortgage information from lenders and real estate agents, who aren’t impartial.

According to Sian, borrowers tend to fixate on the home’s purchase price, and secondarily, the loan’s interest rate. But factors like closing costs, the loan’s total price tag, whether the loan is fixed or variable, and whether the borrower is required to get private mortgage insurance can dramatically alter what borrowers end up paying.

Following are four common mortgage errors and tips for avoiding them.

Shopping Just One Lender

Whether it’s a new car or the latest gadget, consumers know it pays to shop around for the best deal. But half of mortgage borrowers consider just one lender or broker in their shopping process, according to the CFPB study.

“It is a good idea to shop around for mortgages in order to get better rates,” Sian says. “Sometimes large banks and lenders don’t offer the best rates that can be had. Additionally, some lenders add in fees. While the final fees do show up at the end, many borrowers don’t understand the fees and accept them as the cost of getting the loan, even though they could’ve avoided those fees by shopping around.”

A small difference in the interest rate can make a big impact on cost. On a $200,000 fixed-rate, 30-year mortgage, an interest rate of 4.5 percent costs $59 a month more than a 4 percent rate. That adds up to $3,512 in the first five years.

The lower interest rate means the borrower would pay off an additional $1,421 in principal in the first five years, even while making lower payments.

Failing to Seek Objective Info

When questions about mortgages come up, borrowers typically turn to their lender, broker or real estate agent. While those are good sources, the CFPB found that many borrowers could benefit from seeking out additional, objective sources of information, such as housing counselors and news sites.

“Borrowers should seek a range of information, but each source should be vetted thoroughly,” says Greg Cook, a senior loan officer with Platinum Home Mortgage in Temecula, Calif. “Borrowers should remember that the right answers to their questions are often determined by the specifics of their individual situation.”

While Cook understands that many borrowers, especially first-timers, ask friends and family for advice, he says those sources are often unreliable because what works for one person may not make sense for their friend. News outlets, on the other hand, can be good places to get a “30,000-foot view” on the topic, but, Cook says, they won’t shed much light on an individual borrower’s situation.

As for housing counselors, Cook says they can be a valuable resource, but often their expertise is limited to lending programs, meaning they can help borrowers discover which types of loans are available, but they won’t necessarily have insight into which lender is the right choice.

Not Learning About the Process

Talk to homeowners and they’ll likely tell you about how complex, confusing and time-consuming the mortgage process can be. Knowing that, it’s certainly a good idea to arm yourself with as much knowledge about borrowing as possible. But amazingly, the CFPB found about half of all borrowers “aren’t very familiar with the process” and 14 percent were “not at all familiar.”

“A good mortgage (specialist) will lay out the process for you in a very clear manner,” says Elan McMillin, a mortgage banker with USA Mortgage in St. Louis. “The borrower should receive some sort of outline that details step by step what is expected of them during the process and the details of what is required from application to close. If the lender can’t provide an outline like that immediately, then it may be time to shop for another lender.”

But the problem may not be with the lender, according to Cook, who says it’s surprising so many consumers don’t know more about the process, given the abundance of information out there.

“One reason is borrowers focus on the home they want and the best rate,” he says. “But once you understand the process better, you see that there are a lot more factors that come into play.”

Focusing on Irrelevant Factors
Given that so many borrowers look to a single lender when shopping for a mortgage, it’s not surprising the CFPB found that many borrowers often pick lenders based on geographic proximity, a pre-existing financial relationship, or other factors, like reputation, that may not be relevant to the loan’s total cost.

“The downside of picking a lender based on proximity, pre-existing relationship or reputation is that they can lose out on getting the best possible rates, resulting in long-term money going out the window,” Sian says.

But the best deal isn’t necessarily the lowest rate, according to McMillin, who points out that different loan products may have the same rate but substantially different costs, which underscores the need to learn about the variety of loans available.

Michael Estrin writes about mortgages and other personal finance topics for Bankrate. Visit Bankrate online at www.bankrate.com.

Friday, July 10, 2015

A Patio for Your Cat - Catio Spaces

Catio Spaces – A Patio for Your Cat

Ocean City MD Long & Foster

By Nick Caruso

RISMEDIA, Friday, July 10, 2015— Do you have an indoor kitty dying to escape the confines of your home? Expand your cat's territory with a brand new catio - a patio for your cat!

If you're anything like me (total cat person - guilty!), you want to protect your feline friends from the dangers of the outdoors (cars, owls and coyotes, oh my!), but you also feel sort of guilty about taking away their natural inclination to explore and hunt. Now, thanks to Catio Spaces, you can build your cats an outdoor escape that will keep them safe and give them a much-needed and healthy dose of fresh air.

These enclosed patios for cats give them everything the little buggers need - something to scratch, some extra toys, and a place to run around or sunbathe. The Seattle-based Catio Spaces sells DIY plans for $49.95 or they’ll design one for you. Plans can be ground-level or window perch style, and are built to complement your home, budget and style.

Check out some of the very best catios below. (All photos courtesy of Catio Spaces and Habitat Haven)

This post was originally published on RISMedia's blog, Housecall. Check the blog daily for winning real estate tips and trends for you and your clients.

What is a “Head and Shoulders” inspection?

August 14, 2014 By Tom Horn

HUD Rules for inspections are used throughout the United States including Ocean City MD. Understand what should take place and protect yourself when applying for an FHA loan. Susan@ShoreFun4U.com

Image result for head and shoulder appraisal inspection photo

When doing an FHA appraisal inspection the appraiser is required to make a “Head and Shoulders” Inspection. I received a question this week about a topic that I think most homeowners and many real estate agents are not aware of regarding FHA appraisal inspections. Appraisers are required to report on what they see in the attic of a home, and in order to do this they have to physically inspect the attic by making a “Head and Shoulders” inspection, which means they are only required to enter the attic to the extent that their head and shoulders are in the attic space. Some homes have drop down stairs that make entry into the attic easier, however other times the only access is a scuttle in which case the appraiser must have a ladder or other means to view the attic. It is also handy to have a flashlight in case there is no other light source available. According to HUD Handbook 4150.2 the appraiser must:

Enter the attic and observe the interior roofing for insulation, deficient materials, leaks or readily observable evidence of significant water damage, structural problems, previous fire damage, FRT sheathing, exposed and frayed wiring and adequate ventilation by vent, fan or window.

If any of the above conditions exist the appraiser is required to report on what they see and make the appraisal “subject to” repairs. Check out this attic I inspected per HUD/FHA guidelines.

The lender should inform the owner of the home, or real estate agent if the home is listed for sale, that the attic access should not be blocked and that entry is possible. If it is not possible for the appraiser to get in the attic because there is something in the way they must notify the lender and make arrangements to come at another time when access is possible. HUD notes that it is the responsibility of the lender to make sure access is possible. If a return visit is made it will be necessary to charge an additional trip fee, which increases the cost to the borrower. The appraiser is not required to move furniture or any other items that may be blocking access to the attic.

As noted above the following are items which the appraiser should look for and report on if noticed and pictures should also be taken to provide proof to the lender:

§ Evidence of water damage- Have recent rains caused leaking due to faulty roof shingles?

§ Evidence of fire damage- Is there any black charring or smoke damage caused by a previous house fire?

§ Exposed or frayed wiring- Exposed wires can be an electrical shock hazard and/or contribute to house fires.

§ Structural problems- Are there any roof trusses that are cracked or warped and that could cause the roof to collapse?

§ Adequacy of ventilation- lack of proper ventilation can result in higher than normal heating and cooling bills.

In addition to the above items the appraiser must look for and report any other items that can pose a threat to the health and safety of the occupants or adversely impact the value and marketability of the property. Do you have any other appraisal related questions pertaining to either attics or FHA requirements? If so leave me a message below and I will be sure to get back with you.

Read more http://birminghamappraisalblog.com/appraisal/head-and-shoulders-inspection/

Monday, July 6, 2015

Home Improvement: 7 Ways to Dress Up Your Entryway

7 Easy Ways to Dress up an Entryway

ShoreFun4U - Long & Foster Ocean City MD Real Estate

By Barbara Pronin

RISMEDIA, Monday, July 06, 2015— The entryway or foyer of your home conveys an important first impression to your guests. For homeowners bent on making it a great first impression, designers at ElleDecor.com suggest seven easy ways to make an entryway look larger, brighter, and more welcoming:

Use the power of mirrors – A well placed mirror can instantly open up a space and add a luxurious feel. Splurge on a good one, framed or not as you wish, to grace your entryway for the long haul.

Keep fresh flowers on hand – Nothing freshens up a room quite like a vase full of fresh flowers. They are aesthetically pleasing and will keep your entryway smelling wonderful. Using long-lasting silk flowers will hold down monthly costs, but think about replacing them with fresh flowers before a dinner party or other event.

Play with patterns and colors – Your entryway should reflect your personal style. Add a jolt of color, especially in a light, bright foyer, or bring in an unexpected wallpaper pattern to turn the space into something special.

Rethink the lighting fixtures – Swap out the lighting fixtures that came with the house for something you really love. The right overhead chandelier or well-detailed wall sconces can add drama and grace to any entry.

Add a statement piece – It may be a patterned rug, a tufted bench, a console table or a pair of smaller tables. There should be some element in your entryway that serves as a centerpiece and sets the tone for the rest of your home.

Do use some artwork – Art brings a level of elegance to a room. A well placed piece of art, or a gallery wall of smaller pieces, can be the perfect finishing touch for an entryway that reflects your taste and style.

Don’t overcrowd the space – If you're blessed with an entryway big enough for several pieces of furniture, by all means, go for it. But if the area is on the small side, skip the console table because the area will look better with just a few small pieces. A plant stand and a mirror may be all that is needed to dress up a small entry.

Ocean City MD Hammerhead Shark Sighting

Cool Facts About the Hammerhead Shark Spotted in Ocean City, MD

Michael A. Nolen, CEO of Delmarva Home Relief

June 26,2015

This week a Hammerhead shark was spotted in Ocean City, MD close to the beach, in the downtown inlet and even the Assawoman Bay. This shark sighting has started a lot of commotion. While I normally don’t write about Sharks, my daughter loves them and said I should write about them.

Since this is a local Ocean City story, I think it’s appropriate. In this post, I’ll give you the scoop about the Hammerhead shark spotted in OC, and some helpful shark facts that you may find interesting.

What's Up with Sharks in Ocean City, MD!

With 7 shark attacks in North Carolina, and sharks spotted in OC. Should we be worried.

This week, tourists in the Ocean City beach town spotted a Hammerhead Shark close to the beach. Now, the shark I use in the image about is not the shark spotted. The shark spotted in OC seemed less aggressive. Some have said that the shark is sick or may be ready to give birth to shark pups. Hammerhead shark pups, like the pups seen recently in Ocean City, are about 1.5 feet long when born, and 13-31 pups are in each litter.

I'm no shark expert, but I was able to gather some cool facts from some great sources to share with you.

It is highly recommended to avoid sharks at all costs, but out of the nine species of Hammerheads, only three are considered to be dangerous to humans.

Hammerhead sharks are generally not dangerous to humans(like the Scalloped Hammerhead which can be found around Ocean City, MD), but great hammerheads should be avoided due to their size.

Great Hammerheads (Sphyrna mokarran) can reach a maximum length of about 20 feet, although they are about 12 feet long on average. Great hammerheads may be found both close to shore and offshore, in warm temperate and tropical waters. They live in the Atlantic, Pacific and Indian Oceans, Mediterranean and Black Seas, and Arabian Gulf. We may not need to worry about running into a Great Hammerhead in Ocean City.

The Scalloped Hammerhead (Sphyrna lewini) is a common shark in the Ocean City coastal waters. They may be found in warmer temperature and tropical waters. They may also find their way into bays, inshore areas, and waters as deep as 900 feet.

The scalloped hammerhead can grow to over 13 feet in length and weigh about 340 pounds. Their backs can be bronze or light gray, have a white underside, dark-tipped fins and a dark blotch on the lower lobe of their caudal fin also know as their tail.

Scalloped hammerheads may gather in large schools for breeding. Females give birth in shallow waters in summer. This could be why the shark came so close to our local beach this summer.

Scalloped hammerheads are generally not considered dangerous to humans. Based on a report in theInternational Shark Attack File, hammerhead sharks count for at least 17 Non-Fatal Unprovoked attacks and 0 Fatal Unprovoked attacks on humans.

Scalloped hammerhead sharks are listed as endangered by theIUCN Red List. This is caused by the high rate of bycatch in fishing gear, and shark finning operations. They are also more vulnerable to capture than some other fish because of their schooling behavior.

I hope you found this helpful. If you're visiting Ocean City this summer, enjoy your time on the beach, boardwalk, rides, restaurants, and events that this great family destination has to offer.

Since I usually write about real estate topics, I should point out the great Ocean City, MD real estate opportunities. Get some helpful tips about buying a home in OC from our OC real estate pro blogger, Joe Wilson.

References and Additional Resources

National Geographic. Hammerhead Shark.

MarineLife. Scalloped Hammerhead. by Jennifer Kennedy

IUCN Red List of Threatened Species. Hammerhead Shark (Sphyrna lewini)

MarineLife. Great Hammerhead. by Jennifer Kennedy

Sunday, July 5, 2015

Summer Beach Vacation Home: 5 Things to Know Before Renting Out Your Home

A credit check can offer insights into your applicant’s payment history and gives you a good idea if they’ll likely be a good or bad credit risk.

Owning a rental property requires hard work, patience, and planning.

Ocean City MD real estate. Renting or owning a vacation home.

If you’ve entertained thoughts about renting out your home, you may be asking yourself a few questions: “Is it worth hanging on to this property?” “How will I feel about strangers moving into my home?” “Will my tenants be responsible?”

Owning a rental property can require hard work, patience, and planning. There’s the good to consider, like the potential to increase your income and build a steady cash flow. On the other hand, being a landlord may test your ability to deal with the unexpected, like emergency home repairs or unreliable renters.

Before you hand over the keys, here’s what you can do to make the rental process go smoother.

1. Research the market

Research the market in the neighborhood of your rental home to choose a rent amount that matches local rates while still helping you earn a profit. Consider the square footage and number of bedrooms and bathrooms.

You might also take into consideration any additions to the property and the age of the home. Don’t forget to factor in costs like pest control, lawn maintenance, andoccasional home repairs.

2. Grace your home with curb appeal

The first impression of your home’s curb appeal can mean everything, and depending on where you live and the time of year, your home may have taken a beating from the sun, wind, rain, or snow.

To give your home a fresh look, rent a power washer, clean out the flower beds, and trim shrubs and low-hanging tree branches. Give your lawn a clean trim, your panels a new coat of paint, and your shutters a good cleaning.

3. Check to see if your prospective tenant is financially responsible

A credit check can offer insights into your applicant’s payment history and gives you a good idea if they’ll likely be a good or bad credit risk.

You may also want to consider hiring a reputable company that can perform a tenant screening on your potential occupants to find out if they’ve damaged previous rental properties or have a criminal record. You can also ask for referrals from past residences since this information won’t be included in a credit report.

4. Plan for financial emergencies

Renting comes with its own set of unexpected emergencies, from tenants suddenly vacating a property to their calling you on a Sunday about a broken water heater. These can be tough expenses to bear, and as a landlord, it will behoove you to set aside funds for such situations.

5. Get appropriate insurance coverage

There’s always the possibility that your tenants or one of their guests might have an accident or damage your property. You could also experience a loss of rental income due to an unforeseeable disaster. The proper insurance may cover these things along with legal fees if you end up taking your tenant to court.

For some, becoming a landlord is all about on-the-job training. It can be a challenge, but in the end, renting out your extra space can help you reap financial benefits.

- See more at: http://www.trulia.com/blog/5-things-to-know-before-you-rent-out-your-home/#sthash.kjis2DGg.dpuf

Living Small: 6 Reasons Why the Tiny House Movement is going to be Big.

Six Reasons Why the Tiny House Movement is Going to be Big Over Coming Decades

Buy a lot in Ocean City MD and build your own small beach home. Long & Foster at the beach

1. Economic

In the aftermath of the financial crisis and now the Euro crisis, many people have simply lost their hard earned dollars or had their homes repossessed. This segment has had to reassess their lives and their future. When you have lost decades of earning capacity you really need to rethink things. Since the GFC, things have become a lot worse for economies, with both private and sovereign debt levels almost double what they were before. In OECD cities such as Sydney, Melbourne, Toronto, Vancouver, Auckland, London, and New York, the average price of a standard home or apartment is close to or pushing through the million dollar mark. Even in the far flung outlying suburbs of large cities properties can easily be priced from $500,000 upwards. Even if you are fortunate enough to have a well paying job or business, mortgages can take anywhere between 2o to 40 years to repay. According to “The Tiny Life” research, 21% of people who own a tiny home are under 30. 21% are between 30 – 40, 18% between 40 -50, and the majority (38%) over 50 years of age.

2. Environmental

As people become more conscious of their environmental footprints, small homes will become more prevalent throughout the mainstream. As energy prices continue to increase and the costs of living rise, the tiny house movement will grow. The overall cost of maintaining, heating, and cooling a small space is significantly less than that for larger, more energy and resource intense properties. Not to mention the resources used in the build process are often ten times less than a conventional 2,200 square foot property.

3. Simplicity

Simplifying one’s life and being able to live life within ones means is a good starting point for being able to weather any economic contraction. Reducing debt and downsizing will make transition to a more sustainable life much easier. Many studies maintain that a simpler and less consumerist lifestyle can lead to a happier and more fulfilling life. A consumerist lifestyle distracts individuals from more meaningful endeavours. Reducing the amount of possessions in one’s life can lead to a cleansing not only of physical possessions, but also of the mind, leading to enhanced mental clarity. Having limited space forces one to de-clutter and minimize the amount of stuff owned. Your entire life is therefore simplified, everything from clothes and appliances to furniture begins to take up less mental energy. You only carry what is essential and what is needed. Many tiny homes are roadworthy, mounted on trailers which gives owners the ability to easily relocate.

4. Tiny Homes Give You Big Think Space

The 1950’s heralded the rise and development of suburbia which expanded throughout many Western nations. In conjunction with larger parcels of land came larger homes. It was predominately the post war economic growth in the United States and other OECD nations which encouraged the suburbanization of cities. With cheap energy in the form of crude oil helping fund this suburban expansion, consumer patterns also shifted. The baby boomers went on a spending spree as industrial output enabled people to purchase an array of goods and services that only decades earlier did not exist or were cost prohibitive. With suburbia and larger houses came a new consumer culture. These large homes needed more ‘stuff’ to make them look like they weren’t empty. Today approximately 30% of most American weekly income is spent servicing debt and mortgage repayments. In countries such as Australia and Canada the number is closer to 40%. It is easy to see why there has been a lack of dissent and free thinking among the masses. Tiny homes and downsizing free you up from the burden of expensive living and being chained to the wheel.

5. Happiness Levels

With less stress and without the burden of having to pay and repay debt, people are waking up to the realization that you don’t need to live in a monster home to be truly happy. With the average size of most North American homes increasing by over 60% since the early 1970’s, there is no evidence to suggest living in a bigger home adds to overall levels of happiness, despite what the advertisers and mortgage brokers will tell you! Having a larger home doesn’t mean you are 60% happier than those living in a small space. In fact, studies show that the larger the home, and the more time you devote to maintaining, cleaning, and servicing, the more financial and personal stress you will experience. Living light gives people space to define their worlds and gain more control over how they live life, ultimately leading to greater happiness and satisfaction.

6. Community

Since the rapid period of ‘suburbanization’ from the 1950’s onwards, which brought about long distance commutes to central business districts, more frequent overseas travel, and consumerism, community ties and networks have been lost. People in large cities and throughout suburbia have become isolated. While there are pockets of vibrant communities, in general there has been a disintegration of community values and connection. We have become too busy working to pay off large mortgages and engaging in hedonistic pursuits which have distracted us from what really matters – family, community, and relationships. There are many vibrant developments in the small space community. Due to the relatively new nature of the movement people are coming together in collaboration to solve some of the zoning, planning, and logistical challenges that have since arisen. Projects like the Tiny House Village in SonomaCountry will become blueprints for others to follow. This project will offer shared amenities with the village structured more like a co-op.

Article compiled by Andrew Martin, editor of onenesspublishing and author of One ~ A Survival Guide for the Future… and Rethink…Your world, Your future.

Sources: Rethink…Your world, Your future.

Images: Living Big in A Tiny House