Maybe you’re a seller that has found yourself faced with the reality that you can’t sell your house or condo for a price today that will yield enough to pay off your loan, and you are not a candidate for, or don’t want to do, a short-sale? Or, maybe you are a seller with a house or condo that, for one reason or another, there is very limited demand for and, in fact, it seems that perhaps no one wants to buy what you have to sell? If so, maybe someone suggested, or you have considered, using a lease/option or a lease purchase to sell your home? After-all, there is a large demand for lease-options and lease-purchases by buyers but, you are just not sure if it is right for you? Continue Reading →
Should I rent or buy a home in St Louis? This is a question that I’ve been asked dozens of times over the past couple of years and one that given the fact that home affordability is at an all time high and mortgage interest rates at an all time low, is generally easy to answer with “buy if you can”. I guess I many not have realized just HOW much sense that made financially, until a report came out a few days ago that looked to answer this very question and found that home ownership was 45 percent cheaper Continue Reading →
Assuming you plan to stay put for 3 years or more, buying a home is a better financial decision than renting a home, according to a new report by Zillow. To arrive at this conclusion, Zillow analyzed the “breakeven horizon” in more than 200 metropolitan areas and 7,500 U.S. cities to determine how many years it would take owning a home before it becomes more advantageous than renting the same home from a financial perspective. In more than 75 percent of those metros analyzed, within about 3 years a homeowner would break-even on owning a home versus renting a home. Continue Reading →
Recently, I heard a radio commercial about “special” financing for certain veterans implying this “special” loan is available for a “limited time only.” The good news is that the Veterans Administration (VA) offers an ongoing mortgage loan program to benefit members of the armed forces who have generally served for two years in peace time, or 90 days during conflict. Members of the National Guard or Reserves who have served for six years are eligible along with widows of veterans if the veteran died in a service-related incident. The VA offers loans to: Purchase a New or Existing Home, Rate Reduction Refinance, and Cash-Out Refinance. Borrowers are evaluated by their credit worthiness and their ability to show stable and sufficient income to cover the costs of owning a home, cover other obligations and expenses and have enough left for family support. Traditional credit scoring is not used by the VA in underwriting. Non-married co-borrowers are not permitted. VA loans must be the borrowers’ primary residence. Continue Reading →
Lately the $64 question for many people is whether to rent or buy a home. I think by now everyone knows that, as a result of the collapse in home prices and dirt-cheap interest rates, buying a home is now more affordable than ever, but for a lot of people there are still doubts or concerns that need to be addressed before making the decision whether or not to buy. Many of these issues stem around financing including; how much down payment will be necessary, what can I afford, etc. The American’s Banker Association (ABA)came out with five questions every potential buyer should ask when deciding to buy or rent a home that, along with the helpful online calculators they offer, I think may be very helpful: Continue Reading →
Do I Have To Sell? No you do not have to sell if you are in a financial position where you qualify, i.e. Debt-to-Income Ratio is satisfactory and on paper you can afford both your current residence and the proposed payment on the new home. However, the borrower in this case must give consideration to other or additional expenses when maintaining multiple properties…increased property taxes, insurance costs, maintenance, un-expected repairs when making that decision. Continue Reading →
In a presentation given at the International Builders Show, Jill Waage, Editorial Director for Home Content for Better Homes and Gardens revealed survey results about consumer attitudes towards home ownership, upkeep and renovations, design and personalization, and more. A primary point revealed in the presentation shows that, despite continuing economic uncertainty, consumer thoughts toward home ownership remain strong with 8 in 10 saying home ownership is still a good investment and an important part of the American Dream. Continue Reading →
Today, Moe Veissi, President of the National Association of REALTORS, issued the following statement in response to President Obama’s budget proposal: “As the leading advocate for housing and homeownership, NAR is strongly opposed to elements of President Obama’s budget proposal that would limit itemized deductions, including the mortgage interest deduction, for thousands of families.” Continue Reading →
Until recently, home ownership was no bargain compared to renting, according to Paul Diggle, a housing economist at Capital Economics. Recent data from the U.S. Census Bureau and published statistics from Thomson Datastream indicate that rising rents and falling mortgages are tipping the scales towards home ownership. The median monthly mortgage payment has fallen to about the same as a median monthly rent check. Continue Reading →
Candidate positions on housing will be important considerations to nearly seven of 10 Americans (69.6%) in the 2012 presidential and congressional elections, according to a new national survey on housing released today by Move, Inc. This is especially true for Millennials(1) (70.7%), the next generation of homebuyers and the segment expected to play as important a role in the 2012 elections as they did in 2008. Continue Reading →
Not knowing what you can afford – What the lender says you can afford and what you know you can afford may not necessarily be the same. Looking at homes that are outside your price range can put you in the dangerous position of trying to stretch beyond your financial means. Be sure to consider all of your monthly expenses when budgeting for your anticipated mortgage payment. Continue Reading →
There aren’t quite as many loan programs as there are borrowers, but it seems like it sometimes! We’ll work with you to qualify you for the best loan program to fit your needs. But there are some general considerations you can have in mind in advance.
Are you refinancing to lower your rate and monthly payments? Then your best option might be a low fixed-rate loan. Maybe you have a fixed-rate mortgage now with a higher rate, or maybe you have an ARM —
In my opinion, the capital gains tax exclusion that was granted to homeowners under the Taxpayer Relief Act of 1997, is the single best, wealth-building opportunity, that’s ever been made available to the average American. That’s because, under Section 121, of the Internal Revenue Code, a single homeowner can exclude, up to $250,000, from the sale of their principal residence, from capital gains tax, and a married couple, filing a joint tax return, can exempt up to $500,000. The only requirement is that a homeowner must have owned and occupied their home, for a total of twenty-four out of Continue Reading →
As we watch the values of our homes drop, we would expect to see our county assessor’s valuations drop as well, resulting in lower property taxes. However, that is not the case in many counties as homeowners find their homes being valued higher by assessor’s than the market value is. Well, according to a survey conducted by FindLaw.com, one in four homeowners are doing something about it and challenging the assessed value of their homes. The good news? According to the responses, the majority who did so say they were successful in lowering their tax bills!
The U.S. Department of Housing and Urban Development (HUD) announced last week, the launch of the Emergency Homeowner’s Loan Program (EHLP) to help homeowners who are at risk of foreclosure. This program is available in 27 states and is available to homeowners who have experienced a reduction in income due to:
Recently, I heard a radio commercial on the radio about “special” financing for certain veterans. The ad continues to imply this “special” loan is available for a limited time only. The good news is that the VA offers loans to members of the armed forces who have generally served for two years in peace time, or 90 days during conflict. Members of the National Guard or Reserves who have served for six years are eligible along with widows of veterans if the veteran died in a service-related incident. There are special circumstances for some veterans regarding eligibility.
What a great time to be a First Time Home buyer! Historically low interest rates and great home prices! However, the home buying “process” can be a difficult if the borrower is not prepared and have not done their homework.
Before making offers and writing contracts, talk to your mortgage lender and get Pre-Qualified for a loan. Pre-Qualify means you can confidently begin house shopping in the appropriate price range.
Private Transfer fees have been something of a hot topic in the real estate community of late and something that has many professionals in the industry in opposite corners. This week, former Secretary of the Department of Housing and Urban Development, Henry Cisneros, weighed in with his support for private transfer fees in a letter to the Federal Housing Finance Agency.
The VA loan program was designed to make home ownership more obtainable for eligible veterans. Home purchases with VA loans must be the veteran’s primary residence. There is no down payment required; no mortgage insurance requirement and VA loans do not incur a pre-payment penalty.
Most Americans are opposed to the idea according to recent survey
There have been several stories published on this site concerning borrowers that are “underwater” (owe more on their home than it is currently worth) and whether they should simply “walk-away” or do a “strategic default” in order to get out from under their problem. We have published views from both sides of this argument and both sides have made good points in support of their position. However, according to a survey conducted by FindLaw.com, it is clear that the majority of Americans, 60 percent to be exact, believe it Continue Reading →
Not providing a current mailing address to the Assessors office can cost you your home
Mohammad Bhatti learned this the hard way. Bhatti, a resident of the City of St. Louis, purchased a property at 3243 Pennsylvania in 2005 to rehab and resell. From court records I reviewed it appears that the city had the property address as Mr. Bhatti’s mailing address rather than where he was actually living. This is something that would ultimately cost Mr. Bhatti to lose his property at 3243 Pennsylvania, which he claims to be worth $169,900, over $1,452.06 in delinquent property taxes.
The Federal Housing Finance Agency (FHFA) back in August, 2010, published proposed “guidance” related to private transfer fee covenants that applied to Fannie Mae, Freddie Mac and Federal Home Loan Banks (the “regulated entities). The message in this guidance was that private transfer fees are bad and those regulated enterprises should stay away from lending on real estate subject to such covenants.
The President has signed the bill extending Mortgage Insurance tax deductibility through December 31, 2011. Borrowers can use Mortgage Insurance (MI) to buy a home sooner and enjoy predictable payments, while benefiting by deducting the premiums from their income taxes. And MI can be canceled once the home buyer builds enough equity. MI is required on all mortgage loans that exceed an 80% loan to value.
Ah, the reverse mortgage battle continues…Consumers Union says their risky and dangerous; RetireSafe, a grassroots organization that advocates on behalf of seniors says they provide financial independence to Seniors…so who’s right?
First off, I have to say that I personally feel reverse mortgages offer an excellent opportunity for seniors to live a better life, or get them through a tough financial period, by tapping the equity in their homes. I have written before about a friend of mine, Tom Carter, who has helped dozens of seniors over the years with reverse mortgages. Having said that, obviously, like almost Continue Reading →
Dennis Norman
The National Association of REALTORS Pending Home Sales Index for October shows an increase of 10.4 percent in the index from the month before (seasonally adjusted), and a 20.5 percent decrease from a year ago.
Can I own real estate within my IRA?
With investment property priced to move, some IRA owners are buying actual real estate properties. Did you know you could do that? Most people don’t. Not everyone can do it; not everyone should do it. However, some people are doing it – particularly high net worth IRA owners who see great deals in a buyer’s market.
The National Association of Realtors® announced that it “strongly supports” the proposed guidance from the Federal Housing Finance Agency to prevent government-sponsored enterprises Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks from investing in mortgages encumbered by private transfer fee covenants.
In a letter sent to the Federal Housing Finance Agency (FHFA), NAR reiterated its opposition to these covenants, which developers often attach to a property to require payment of fees back to that developer each time the property is resold. These covenanted mandates are often extremely difficult to reverse once in place, and in many Continue Reading →
Five questions every potential buyer should ask when deciding whether to rent or buy a home
First time homebuyers have a lot to consider this summer when making the decision to rent or buy a home: interest rates are at all-time lows, there’s still plenty of housing stock and prices are at or near their lowest in years. Still, deciding whether to buy a home or rent an apartment can be a complicated decision. How do you know what’s right for you? Potential buyers should ask themselves several key questions before making this important decision.
Dennis Norman
In a loud and unified voice, 83.7 percent of the voters yesterday voted in favor of Missouri Constitutional Amendment 3, the ban on future transfer taxes or fees on real estate in Missouri. In a huge victory for Missouri property owners, this effort, spearheaded, and funded in a large part, by the Missouri Association of REALTORS, insures that Missouri remains free from this tax that many, including yours truly, consider a form of double taxation.
Missouri is one of only 13 states in the U.S. that do not have a transfer tax imposed at the state Continue Reading →
Joe Plemon, ChristianPF.com
Owning your own home may still be the great American dream, but, the influx of foreclosures in recent years has made it a nightmare for millions. If you are considering purchasing a home, I challenge you to at least think through the advantages of renting before you buy. Here are a few.
1. Less risk
Strangely, risk seems to be the factor least considered