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Posts Tagged ‘Financing’
Home Sales Rising Due to Ending Tax Credit
Due to first time home buyers tax credit ending by April 30th instead of November 30th, home sales are rising as home owners rush to sign a purchase agreement by the end of April in order to qualify for the tax credit. Sales are expected to rise 1.4 percent which means an annual rate of 5.65 million which is up from September which was only 5.57 million. Even though sales are expected to drop in the winter months because the tax credit is not running out until later, this means an expected sales increase in the spring, which is also in most areas a better time for selling homes due to warmer weather.
Even though this is some good news for the housing market, there are still many people facing foreclosures. Fourteen percent of homeowners are either getting behind on their mortgage payments or were in foreclosure state by the end of September. Also, if unemployment keeps rising, than the housing market will continue to suffer. There are some plans to lower mortgage rates next year but the government is limited in being able to help the housing market.
The best thing that can be taken away from this news is that there is hope for the housing market because sales are expected to rise in the Spring, so even if things may seem slow this winter, don’t give up on getting that perfect house you want in the spring and if you are person selling your home, push more to sell in the Spring, when more homebuyers will be rushing to beat that tax credit deadline.
For more information, contact your real estate agent or visit: http://news.yahoo.com/s/ap/20091123/ap_on_bi_ge/us_home_sales
Views: 46Incentives to offer a Buyer during a down Market
Even though the housing market is on its way to improving and is even improving in some areas more than others, the market has a whole is down because of the recent recession. Due to this, many buyers are holding off on buying and saving up their money for later and this can be bad news if you are a seller, but there are some things you can do, to help motivate a buyer. Here are some tips on incentives to offer a buyer to help make a sale.
Ask your Syracuse real estate agent for advice and help
As real estate agents, they have plenty of experience knowing what does and what does not motivate buyers to purchase a home. They will be able to offer you some advice and techniques to get you started.
Pay for inspections or repairs
In order to motivate a buyer to buy your home, one option is to offer to pay for an inspection and any repairs to the home up to a certain amount as agreed upon by both buyers and the sellers.
Help with financing
Another motivation is to help with the financing of the home up to a certain amount. If the buyer does not have to pay for all the financing, they will be more likely to purchase your home.
Offer appliance packages
These days many sellers are offering possible buyers free appliance package deals as an inventive to purchase the home. These packages may include washers and dryers, ovens, or even a new television. They are real incentives for any buyer, especially first time buyers.
Give Pre-paid utilities option
This option takes some of the burden off the buyer to pay the electric bill that first month or the gas bill or maybe even the cable bill. This helps motivate buyers to purchase homes and hopefully your home too.
These tips for offering incentives to buyers so they will be more motivated during a down market or recession can make both parties happy. The seller will not have to worry about the burden of paying for two homes in their future and the buyer can enjoy their new home with fewer worries about money and other move in details. It is really a good idea for everyone involved.
Views: 46Tax Credit Extension Seems Likely
It seems likely that the U.S. Senate will approve a deal to extend the First-Time Homebuyer Tax Credit, but the devil is in the details.
Florida Democrat Sen. Bill Nelson told reporters traveling to Florida with President Obama on Monday that he thought that the extension would be approved, but both senators and representatives are among those who think that there should be some fiscal offset for the cost of the extension. Spending any more money on the stimulus effort also could stir up a hornets’ nest in some circles.
The proposal in the Senate that appears to have the most likelihood of passage would extend the $8,000 credit through March 31, then its value would drop by $2,000 for each of the subsequent three quarters of 2010. This plan was offered by Senate Majority Leader Harry Reid of Nevada and Senate Finance Committee Chairman Max Baucus, a Montana Democrat.
Source: Associated Press, Andrew Taylor (10/26/2009) and The Wall Street Journal, John D. McKinnon (10/27/2009)
Views: 44Graduated Payment Mortgages
If you are a first time buyer or just a buying that only has a certain amount of income right now, finding financing to help you purchase that new home may be a challenge. You do have options though and one of them is a graduated payment mortgage. This type of mortgage has a lower payment in the beginning to help you get started. This may be a good option, especially if this is your first home. Here are some tips about graduated payment mortgages to help you out. This way you can have less to worry about and just enjoy your new home and future.
Ask your Syracuse real estate agent for advice
Real estate agents know that financing a home plays a big role in whether or not you can afford to purchase a home. They can help you go over your options or help you find a lender that can help you out. They are a great first resource.
Starts out with lower payments
Graduated payment mortgages start out with lower payments that increase over the next few years. This allows you to have more money while you are looking for a better job or waiting on a promotion.
Allows you to save for later
This loan allows you to save money for later for home repairs or remodeling or just to budget more for those later increased payments
Good for starter homes
If you only plan to stay in the home for a few years and then move, this is the loan for you, because it has those lower payments in the beginning and may not increase until your income does, so it is good for first homes or starter homes.
Has a fixed rate and maturity
This loan has a fixed interest rate and maturity so that is good since the payments may increase over the years. Just make sure you budget well for the increases that will happen.
If you are just starting out and this is your first home, there is so much to think about and consider. Following these tips and advice about graduated payment mortgages will at least help get you started and give you one less thing to worry about. This way you can focus more on your future and your new home.
Views: 39Fewer Short Sales Come Up Short
While obstacles to short sales remain, real estate practitioners say the process is becoming more efficient. Rather than waiting six months or more to push through a deal, agents say banks are more willing to negotiate prices up front.
“My gut feeling is that short sales seem to be the preferred avenue for distressed property now,” says Cindi Hagley of San Ramon, Calif.-based Windermere Welcome Home. “It’s cheaper for [banks] to do a short sale than go all the way to foreclosure.”
The short-sale process has become more manageable now that banks are willing to pre-approve prices, reach out to underwater borrowers who have listed their homes for sale, implement Web-based systems that manage the short sale process, and add staff dedicated to short sales.
Additionally, the U.S. Treasury is set to implement a streamlined short sales framework and offer incentive payments of $1,500 to home owners and $1,000 to both loan servicers and second-lien holders.
Borrowers also prefer short sales because Fannie Mae requires them to wait only two years to own another home or even less than that if they were not delinquent. By contrast, those who lost their homes to foreclosure have to wait five years.
Source: San Francisco Chronicle, Carolyn Said (10/21/09)
Views: 33Home Improvement Loans
If you are looking for a home and you find one in the perfect location and with all the space you need, but it needs some updating and improvement, you may wonder how you are going to pay for this on top of purchasing the home. There are home improvement loans you may qualify for and be able to use to finance the home improvements for your new home. That way you can improve what you want and enjoy your home with fewer worries and hassles in the future.
Ask your real estate agent for advice
As your real estate agent, they know about all types of loans for home buying, selling, as well as improvements. They will help you get started and give you some advice and tips.
Keep track of your credit
Today with the one the economy has been, many lenders will not even consider lending to people they view as “high-risk”. So it is important to keep track of your credit or do all that you can to improve your credit score and make sure it is at least good before applying for a loan.
Apply for a 203k loan
This type of loan will help you pay off a seller for the price of your home as well as put money into a different account to pay construction workers and contractors a little at a time until the repairs and improvements are all complete. This way you have just enough money for everything you need.
Contact a mortgage broker
When having this loan, you may make your home worth more than you owe for it, making you possibly eligible for a home equity loan. If this is the case it is important for you to contact a broker about all your options and choices. They can help you figure out the right loan options for you after these home improvements.
Avoid repair and improvement scams
It is important to avoid repair and improvement scams. One good way to do this is to get a loan first then hire a contractor. You can also ask for advice from friends and family as well as your real estate agent and lender.
Following these tips and advice for home improvement loans can help you decide what is best for you and what type of home improvement loan is right for you. That way you can enjoy your new home and its improvements long into the future with no future hassles or troubles.
Views: 104Option ARM loans
If you are experienced with mortgages and your income may be different every month, but you still need financing for a new house, you may not know which option is best for you. Option ARM loans may be just what you need. Some people think they are bad because they do not include the full amount of interest in the monthly payments, but for people who know who to budget well and may be on a budget this is not a problem and these loans actually offer many benefits. Here are some tips to help you decide if these loans are right for you.
Ask your real estate agent for advice
Real estate agents have plenty of experience with loans and financing options and they will be able to provide you with information to help you decide if an option ARM loan is right for you and your family.
Has a low start rate
These low start rates are like teaser rates and are good for one to three months and it helps figure your minimum monthly payment.
Minimum Monthly payment option
This option is good for four to five years and does not include your full interest payment. This makes these payments lower and good for people whose income is different every month.
Interest Only Option
These loans also offer an interest only option which means that you would only pay the interest on the loan per month and not principal.
Fully-Indexed Option
This means that the index rate would be added to the margin for the loan and this adjusts every 6 months and the index rate would adjust every month.
As you can see ARM option loans, do just what they say, they offer many different payment options. If you have an income that is different every month and know how to budget for these differences, ARM Option loans may be just right for financing your new home. This way you can get on to enjoying your future with less financing worries.
Views: 36Home Equity Loans
If you are a seller of a home and want to buy a new one, but may not have the funds, it is important to consider all your options. If you have equity or value in your first home, a home equity loan may be right for you. These loans are junior loans and pay out quickly and come in second to a first mortgage. These loans use your home as the security. If you make your payments on time and your home has value, these may be a good option for you. Here are some tips about home equity loans to get you started.
Ask your real estate agent for advice
Real estate agents have experience with many different types of loans and will be a great resource in helping you decide if a home equity loan may be right for you.
Loans can be used to purchase a new home
These loans can be used toward the purchase of a new home. However, lenders typically won’t give the loan if your current home is on the market. So, you may want to make these decisions ahead of time and plan out what is best for you.
Home Equity loans are tax deductible
This makes these loans favorable for making home improvements or repairs, paying for big expenses such as a college education or a new car.
Have long loan terms
Other loans may only have short term loan options but these loans have many options such as 3, 5, 7, 10 or even 15 years. This makes these types of loans more attractive to many homeowners.
Can Borrow 100% equity
With some loans you can only borrow up to so much within a certain type frame, but since this loan is based on the equity of your home, you can borrow up to 100 % of it. This also makes this loan appealing especially if a homeowner needs the funds to pay for something big.
These tips and information about home equity loans can help you as a homeowner to decide if this type of loan is best for you. Then you can be on your way to owning that new home of your dreams with fewer hassles and worries. You can just enjoy your new future.
Views: 39