HeroSimplev3

beds

1 Bedroom

2 Bedroom

3 Bedroom

4 Bedroom

Buy a Home

Sell My Home

cost

Under $50k

$50k-$100k

$100k-$200k

$200k-$300k

$300k-$400k

$400k+

baths

1 Bath

2 Baths

3 Baths

4+ Baths

Rent

Sell

Everyone Deserves the Opportunity of Home

Exceptional Properties. Exceptional Clients.

<p>With the burst of the housing bubble, credit crisis, and millions of foreclosures across the country, you may wonder if buying a home is such a good idea after all. However, it’s important to consider all of the facts. The important message to take away from these events is not that buying a home is a bad idea, but that you must be smart about buying your home.</p><p>The housing market, like every type of market, unavoidably has its ups and downs. That doesn’t mean buying a home is a bad investment. As a long-term investment, homeownership is still one of the best investments for individual households. Historically, real estate has consistently increased in value, despite shorter periods of depreciation due to local markets and/or national economic conditions. The data shows that homes generally appreciate about 5% per year.</p><h2>Savings &amp; Investment</h2><p>Five percent may not seem like a great return on investment, but you have to think about it in the context of the situation. For example, let’s say you put 10% down on a $200,000 house. That’s a $20,000 down payment, or initial investment. At a 5% annual appreciation rate, your $200,000 home would gain $10,000 in value during the first year. Earning $10,000 on an investment of $20,000 is a whopping 50% return.</p><p>For further perspective, let’s say instead of spending that $20,000 on a down payment, you invested it in the stock market. With a 5% return, you would gain only $1,000 in profit.</p><h2>Tax Benefits</h2><p>So now you’re saying that a home may have a higher return, but that’s before you consider all of the costs of home ownership, such as taxes, etc. Well, think of it this way: your property taxes as well as the interest on your mortgage are both tax deductible. You can deduct those costs from your income, thus reducing your overall taxable income. In other words, the government is subsidizing your home.</p><h2>Other Benefits</h2><p>It’s easy to get carried away with all of the economic reasons for home ownership, but it’s important to remember that not every reason is financial. Have you ever wanted to paint the walls of your apartment? Well when you’re renting, you can’t. Has anything in your apartment ever needed updating, but the landlord refused to do it? When you own a home, you can make the space yours in almost any way you want. And you benefit when you do home improvements, both financially and psychologically. Homes generally have more space, for storage, living, etc. than other living arrangements. Not to mention that you have space outdoors for barbecuing, pets, and kids. Owning your home carries with it a sense of pride, accomplishment, and even an elevated social status.</p><p>So when you’re considering buying a home, consider the broad range of benefits that owning a home can have. And always make sure you have an experienced real estate agent and loan officer to help make sure you’re getting a home that is right for you, both financially and psychologically.</p>

Is Buying a Home Still a Smart Plan

<p>Have you received an advertisement offering to save you thousands of dollars on your thirty-year mortgage and cut years off your payments? With email spam becoming more pervasive as everyone tries to get rich quick on the Internet, these ads are popping up with troublesome regularity.</p><p>The ads promote a Biweekly Mortgage and for the most part, do not come from a mortgage lender. Exclamation points punctuate practically every claim:</p><ul><li>No closing costs!</li><li>No refinancing!</li><li>No points!</li><li>No credit check!</li><li>No appraisal!</li><li>Save thousands!</li><li>Cut years off your mortgage!</li></ul><p>To achieve these wonderful savings all you have to do is allow half of your mortgage payment to be deducted from your checking account every two weeks. It’s easy. Of course, there is a small set-up fee and usually a transaction fee with every automatic deduction.</p><p>Essentially, the ads are truthful in almost every respect.</p><p>They just want to charge you money for something you can do on your own for free.</p><h2>The Basics:</h2><p>Normally, you make twelve mortgage payments a year. Since there are fifty-two weeks in a year, a biweekly mortgage equals 26 half-payments a year. The equivalent would be making thirteen mortgage payments a year instead of twelve. By applying that extra payment directly to the loan balance as a principal reduction, your loan amortizes more quickly, requiring fewer payments.</p><p>You save money. The ads are true.</p><h2>How it Actually Works:</h2><p>You cannot simply mail in half a payment every two weeks to your mortgage lender. Since they do not accept partial payments for legal and accounting reasons, the mortgage company would just mail your half-payment back to you.</p><p>Instead, the biweekly mortgage company is an intermediary between you and your mortgage lender. They automatically debit your checking account every two weeks for half of your mortgage payment then place your funds into a trust account. Basically, this is just a holding account for your money. In another two weeks, there is another automatic deduction from your checking account, and so on. When your mortgage payment is due, your funds are withdrawn from the trust account and forwarded to your mortgage lender.</p><p>Since you are placing funds into the trust account faster than your mortgage payments are due, you eventually accumulate enough money to make an extra payment. The way the cycle works, this occurs once a year. he extra payment is applied directly to your principal balance, which causes your loan to amortize faster, pay off more quickly and save you thousands of dollars.</p><h2>Potential Problems with the Trust Account</h2><p>Because your funds are held in the trust account until your mortgage payment is due, there are potential dangers. Not only are your funds held in this account, but so are the funds of everyone else enrolled in the biweekly program. That is a lot of money.</p><p>Most likely, there will be no problems.</p><p>However, if there are accounting errors, mismanagement, or even fraud, your mortgage payment might not get made. The first hint of a problem will probably be a phone call or letter from your mortgage lender, but not until after your payment is already late. Since responsibility for making the payment rests with you and not the biweekly payment company, you may find yourself digging into your personal savings to make the payment directly -- even though the biweekly payment company has already collected your funds.</p><p>Later you can work out the trust account problem with your biweekly payment company.</p><h2>The Cost of the Biweekly Mortgage</h2><p>There is usually a set-up fee that runs between $195 and $350, depending on how much sales commission is paid to the individual or company setting up the account for you. You also pay a transaction fee each time there is an automatic deduction from your checking account and sometimes also when the payment is made to your mortgage lender. There may also be a periodic maintenance fee.</p><p>Meanwhile, whoever controls the trust account is earning interest on your money.</p><h2>Savings of the Biweekly Mortgage</h2><p>By making principal reductions using the biweekly mortgage program, your mortgage will amortize more quickly, saving you money. How quickly your loan pays off depends on your interest rate and when you begin making the biweekly payments.</p><p>On a $100,000 loan at an interest rate of eight percent, your first principal reduction would probably be a year from now. Assuming the principal reduction is equal to one monthly payment ($733.76), you would save $43,852 over the life of the loan and pay it off almost seven years early.</p><p>However, you have to deduct from those savings any amounts you paid in set-up, transaction, and maintenance fees.</p><h2>No-Cost Alternatives to the Biweekly Mortgage</h2><p>Instead of hiring a company to manage your biweekly payment, you could accomplish essentially the same thing on your own for free. Just take your monthly payment, divide it by twelve, and add that amount to your monthly mortgage payment. Be sure to earmark it as a principal reduction.</p><p>The first way you save is that you do not have to pay any fees to anyone. It’s free.</p><p>In addition to not paying fees -- using the same example as above -- your total savings on the mortgage would be $45,904. Plus the loan would be paid off three months quicker than with the biweekly mortgage. The reason you save more is because you are making a principal reduction each month, instead of waiting for funds to accumulate so that you can make one principal reduction a year.</p><h2>Self-Discipline?</h2><p>The biweekly mortgage companies claim that homeowners are not disciplined enough to follow through with principal reduction plans on their own. They suggest the reason for setting up the biweekly mortgage enforces discipline upon you, and by doing so, they save you money.</p><p>However, in this technologically advanced age, banking online and automatic deductions are readily available. You can set up your own automatic deductions including the additional principal reduction and have it go directly to your mortgage lender. Since the deduction occurs automatically, just like with the biweekly mortgages, self-discipline is not a problem. Once again, you don’t have to pay anyone to do it for you and you save even more money.</p><h2>Conclusion</h2><p>The biweekly mortgage plans do not really do anything except move your money around and charge you for it. Plus, even though the danger is negligible, you must trust someone else to hold your money for you. If you can do the very same thing for free, plus save yourself even more money by doing it on your own, why pay someone else?</p><p>The biweekly mortgage plan - who needs it?</p><p>If your goal is principal reduction and saving money, then it is a good plan. If you do it on your own instead of paying someone else to do it for you, then it is a great plan.</p><p><br></p>

The Biweekly Mortgage - Who Needs It?

<p>Lower interest rates have motivated you to refinance your home loan. The lower rate may save you a tremendous amount of money over the life of the loan, but you should also expect to pay the lender the typical closing costs associated with any new loan, including service fees, points, title insurance protection and other expenses.</p><h3>Why do I need to purchase a new title insurance policy on a refinanced loan?</h3><p>To the lender, a refinance loan is no different than any other home loan. So, your lender will want to insure that their new loan is protected by title insurance, just as the original lender required. Therefore, when you refinance you are buying a title policy to protect your lender.</p><h3>Why does a Lender need title insurance?</h3><p>Most lenders generate loans and then immediately sell those loans to secondary market investors, such as FannieMae.</p><p>FannieMae, in order to protect its security interest in the loan, requires title insurance coverage. Even those lenders who keep original loans in their portfolio are wise to get a lenders policy to protect their investment against title related defects.</p><h3>When I purchased my home, didn’t I also buy a lender’s policy?</h3><p>Perhaps. Who pays for the lender’s policy on a purchase loan varies regionally and by the terms of individual contracts.</p><p>However, even if you did buy a lender’s policy when you purchased your home, the lender’s policy remains in force only during the life of the loan that was insured. If you refinance, the old loan is paid off (the “life” of the loan expires) and a new loan is issued for which the lender will require a new title insurance policy.</p><h3>What about my original title insurance policy?</h3><p>When you bought your home, you purchased a Homeowners title policy. The Homeowners’ policy stays in force as long as you or your heirs own the home. When you refinance, your lender will often require that you purchase a new lender’s policy to protect their new security interest in the property. Thus, you are buying a policy to protect your lender, not a new Homeowner’s policy.</p><h3>What could possibly have happened since I purchased my home which warrants a new lender’s policy?</h3><p>Since the time that the original loan was made, you may have taken out a second trust deed on the house or had mechanic’s liens, child support liens or legal judgments recorded against you - events that could result in serious financial losses to an unprotected lender. Regardless if it has been only 6 months or less since you purchased or refinanced your home, a myriad of title defects could have occurred. While you may not have any title defects, many Homeowners do. The only way for a lender to adequately protect itself is to get a new lender’s policy each time you purchase or refinance your home.</p><h3>Are there any discounts available for title insurance on a refinance transaction?</h3><p>Yes. Title companies offer a refinance transaction discount or a short-term rate. Discounts may also be available if you use the same lender for your refinance loan and your original loan. Be sure to ask your title company how they can save you money.</p><p><br></p>

Title Insurance When Refinancing Your Loan

<p>Underground heating oil tanks can pose many potential problems to both home buyers and sellers. They have been the source of many environmental problems such as contamination of surrounding soil and ground water.</p><p>Leaks are generally caused by the rust inside underground tanks or by an electrical condition sparked by electric utility lines.</p><p>Buyers should always have the tank inspected to make sure that it is structurally sound. Buyers who do not want an underground fuel tank can arrange for an above ground tank to be installed in the basement and the underground tank to be shut off. Cleanup of any leaks will also have to be taken care of.</p><p>For buyers, the underground heating oil tank should be written in the sales contract. For sellers, your lawyer should make sure that the description and condition of the underground heating oil tank is accurate and up-to-date.</p><p><br></p>

Underground Heating Oil Tanks

<p>FSBO (pronounced fizz-bo), or For Sale By Owner, is a way of selling your home without the use of a professional real estate agent or broker. The idea behind FSBO is that by selling your home yourself, you save the approximate 6% that would be the agents’ commission.</p><p>6% may not sound like a lot, but it can add up, especially on more expensive homes. But before you run off and decide to sell your home FSBO, you must remember that to get a savings like that, there must be a cost. So what’s the catch? Selling FSBO is hard. A lot harder.</p><p>Only about 10% of sellers that decide to do FSBO are successful at it. And not all of them end up saving themselves money. FSBO sellers often end up accepting a lower price for their home than they would with an agent.</p><p>There are of course other issues as well. Can you afford to make selling your home your full-time job? Because for a lot of FSBO sellers, that’s exactly what it is. Do you have the time and capital to spend on the marketing, advertising, inspections, paperwork, phone calls, showings, and problems that come up when any home is sold?</p><p>Selling with a professional agent also has other advantages. An agent can get your home listed on the MLS (Multiple Listing Service) and other popular websites where not only homebuyers but also other agents can easily find it. Professional real estate agents also have an extensive network that allows them to more easily find a buyer.</p><p>So before you decide to sell your home yourself, thoughtfully consider just how much time and effort you can spare for selling your home, as well as how important it is that your home sell sooner rather than later.</p><p><br></p>

For Sale By Owner - A Good Idea?

<h2>Hot Market</h2><p>This is an extremely competitive market and is advantageous to the seller. Sometimes, homes will sell as soon as they are listed or even before homes are listed. Typically, during a hot market, multiple offers will be made on each home and more often than not, homes will sell for more than the asking price. It is even more crucial to be prepared and to be ready as a buyer when the market is hot. It can be easy to get caught up in the bid for a home, but if you are prepared (pre-approved, solid in price range, realistic about your needs), it is easier to remain focused on your housing needs and price range.</p><h2>Normal Market</h2><p>In a normal market, there is a fairly large number of homes available and an average number of buyers. This market does not necessarily favor the buyer or the seller. A seller may not have as many offers on their home, but he or she may not be desperate to sell either. Again, it is the buyer’s responsibility to be prepared. During a normal market, the chances to negotiate are higher than in a hot market. As a buyer, you can expect to make offers at lower than the asking price and negotiate a price at least somewhat less than what the sellers are asking.</p><h2>Cold Market</h2><p>In a cold market, houses may be listed for more than a year and the prices of houses listed may drop considerably. This market is advantageous to the buyer. As a buyer, you have the time to make an offer that works to your best interest. It is not uncommon to low-ball and to find that sellers are accommodating to meet your needs. Keep in mind that even though this market is a great time for buyers, you do not want to lose your dream home by being unrealistic. Your goal is to get your dream home at the best possible price.</p><p><br></p>

Hot, Normal, and Cold Markets

<p>An alternative to a non-conforming loan is the use of a land contract, which is allowed in some states. A land contract is an agreement between a buyer and a seller, where the buyer agrees to make periodic payments to the seller. The title to the property only transfers to the land contract buyer on fulfillment of the land contract obligations.</p><p>A land contract can be helpful for those who need time to establish or improve their credit rating. There are only small closing costs, and payment can help establish a good mortgage payment record. This can help establish an overall good credit rating, and it is possible for the buyer to later refinance the land contract with a conforming loan.</p><p>On the other hand, there are risks associated with land contracts. Land contract purchases are not necessarily recorded in the public record, and there are no guarantees that the seller will be able to transfer a clear title to the buyer upon fulfillment of the land contract. There also is no lender assuring that the purchase price for the property is justified, and no inspection of the property’s condition.</p><p>Another alternative to a non-conforming loan is assuming the seller’s mortgage. By assuming a mortgage, if the mortgage is assumable, it is possible to save on closing costs, and may allow you to obtain a favorable interest rate.</p><p><br></p>

Land Contract

<p>In today’s world of busy probate courts and exorbitant death taxes, the living trust has become a common manner of holding title to real property. The following may help you understand a few of the requirements of the title insurance industry if title to property is conveyed to the trustee of a living trust.</p><h3>What is a trust?</h3><p>An agreement between a trustor and trustee for the trustee to hold title to and administer designated assets of the trustor for the use and benefit of one or more beneficiaries.</p><h3>Can a trust itself acquire and convey interests in real property?</h3><p>No. The trust is an arrangement between a trustee and the trustor. Only the trustee, on behalf of the trust, may own and convey any interest in real property. The trustee may only exercise the powers granted in the trust.</p><h3>What will the title company require if a trustee holds the title to the property which is part of the trust?</h3><p>A certification of trust containing the following information:</p><ol><li>Date of execution of the trust instrument,</li><li>Identity of the trustor and trustee,</li><li>Powers of the trustee,</li><li>Identity of person with power to revoke trust, if any,</li><li>Signature authority of the trustees,</li><li>Manner in which title to the trust assets should be taken,</li><li>Legal description of any interest in the property held by the trust, and</li><li>A statement that the trust has not been revoked, modified, or amended in any manner which would cause the certification to be incorrect and that the certification is being signed by all currently acting trustees of the trust</li></ol><h3>My trust contains certain amounts of money to be given to various charities which is none of your business. Can I omit these pages?</h3><p>Because many different provisions may be on the same page, the answer must be no -- but if the title company requires a copy of the trust, it may accept a copy with those amounts blacked out.</p><h3>If there is more than one trustee, can just one sign?</h3><p>Maybe. The trust must specifically provide for less than all to sign.</p><h3>Can the trustee give someone a power-of-attorney?</h3><p>Only if the trust specifically provides for the appointment of an attorney-in-fact.</p><h3>What will the title company require if all the trustees have died or are unwilling to act?</h3><p>If the trustor is not able to do so, or the trust provisions prohibit the trustor from appointing a new trustee, the court may do so.</p><h3>How does a notary acknowledge the signature of the trustee?</h3><p>Title is vested in the trustee. Hence, if the trustee is an individual or a corporation, then the new general form of acknowledgment will be prepared to reflect the intrinsic nature of the trustee.</p><h3>How would the deed to the trustee ordinarily be worded to transfer title to the trustee?</h3><p>“John Doe and Mary Doe, as trustees of the Doe family trust, under declaration of trust dated January 1,1992.”</p><h3>Are there any limitations on what a trustee may do?</h3><p>Yes, the trustee is limited principally and most importantly by the provisions of the trust and, thus, may only act within the terms of the trust. The probate code contains general powers which, unless limited by the trust agreement, are sufficient for title insurers to rely on for sale, conveyance, and refinance purposes.</p><p><br></p>

Title Insurance Requirements for Insuring Trusts

<p>Estate planners often recommend Living Trusts as a viable option when contemplating the manner in which to hold title to real property. When a property is held in a Living Trust, title companies have particular requirements to facilitate the transaction. While not comprehensive, answers to many commonly asked questions are below. If you have questions that are not answered below, your title company representative may be able to assist you, however, one may wish to seek legal counsel.</p><p>Who are the parties to a Trust?</p><p>A Family Trust is a typical trust in which the Husband and Wife are the Trustees and their children are the Beneficiaries. Those who establish the trust and transfer their property into it are known as Trustors or Settlors. The settlors usually appoint themselves as Trustees and they are the primary beneficiaries during their lifetime. After their passing, their children and grandchildren usually become the primary beneficiaries if the trust is to survive, or the beneficiaries receive distributions directly from the trust if it is to close out.</p><p>What is a Living Trust?</p><p>Sometimes called an Inter-vivos Trust, the Living Trust is created during the lifetime of the Settlors (as opposed to being created by their Wills after death) and usually terminates after they die and the body of the Trust is distributed to their beneficiaries.</p><p>Can a Trust hold title to Real Property?</p><p>No, the Trustee holds the property on behalf of the Trust.</p><p>Is a Trust the best way to hold my property?</p><p>Only your attorney or accountant can answer that question. Some common reasons for holding property in a Trust are to minimize or postpone death taxes, to avoid a time consuming probate, and/or to shield property from attack by certain unsecured creditors.</p><p>What taxes can I avoid by putting my property in trust?</p><p>Married persons can usually exempt a significant part of their assets from taxation and may postpone taxes after the first of them to die passes. You should check with your attorney or accountant before taking any action.</p><p>Can I homestead property that is held in a Trust?</p><p>Yes, if the property otherwise qualifies.</p><p>Can a Trustee borrow money against the property?</p><p>A Trustee can take any action permitted by the terms of the Trust, and the typical Trust Agreement does give the Trustee the authority to borrow and encumber real property. However, not all lenders will lend on a property held in trust, so check with your lender first.</p><p>Can someone else hold title for me “in trust?”</p><p>Some people who do not wish their names to show as titleholders make private arrangements with a third party Trustee; however, such an arrangement may be illegal, and is always inadvisable because the Trustee of record is the only one who is empowered to convey, or borrow against, the property, and a Title Insurer cannot protect you from a Trustee who is not acting in accordance with your wishes despite the existence of a private agreement you have with the Trustee.</p><p><br></p>

Living Trusts

<p>A professional home inspection protects both you and the buyer. It allows both you and the buyer the opportunity to learn about the property’s defects.</p><p>A home inspection usually covers the following:</p><ul><li>Plumbing conditions - if there is leakage or clogging</li><li>Roofing conditions - the extent of deterioration, if there is leakage</li><li>Electrical conditions - if there are inadequate circuits or potential fire hazards</li><li>Structural problems - if there are problems with the underlying foundation of your home</li></ul><p>As a seller, the home inspection reports protect you because it establishes the actual condition of the property at the time of sale.</p><p><br></p>

Insist on a Home Inspection

<p>By asking the right questions, and knowing exactly what your needs are, you can find the right loan for you. There are certain approaches that you can take while mortgage shopping that can cost or save you money.</p><p>It is still true that the better qualifications you have, the lower your interest rate will be. However, there are mortgages available for almost everyone; it's the interest rates or the down payments that vary.</p><p>Before speaking with a lender, know what monthly dollar amount you feel comfortable committing to. Then when you discuss mortgage pre-approval with your lender, it is easier for you to determine the monthly amount and what value of home the monthly amount translates into. Do not put yourself in the position where you will be paying more each month than you intended simply because the dream home requires it.</p><p>Do your research on the types of mortgages available to you and find the one that best suits your needs. There are a number of considerations to be made in terms of finding the best mortgage for each individual:</p><ul><li>What type of market are you in? Are the interest rates falling or rising?</li><li>Do you want a fixed mortgage rate, where you will always know what your payment is going to be?</li><li>What are your long-term goals? Do you intend to resell the property? Do you only need the mortgage for a short time?</li></ul><p><br></p>

Avoiding Financial Stress

<p>There really is no such thing as a no-cost mortgage loan. There are always costs, such as appraisal fees, escrow fees, title insurance fees, document fees, processing fees, flood certification fees, recording fees, notary fees, tax service fees, wire fees, and so on, depending on whether the loan is a purchase or a refinance. The term “no-cost” actually means that your lender is paying the costs of the loan. All a no-cost loan means is that there is no cost to you, the borrower.</p><p>Except that you pay a higher interest rate.</p><h2>Understand How Loans Are Priced</h2><p>A variation of the no-cost loan is the “no points” loan, or even the “no points, no lender fees” loan. On these loans you pay all the costs associated with buying a house or refinancing, but you do not have to pay the lender associated fees or points. However, since lenders and loan officers do not do anything for free, the profit has to come from somewhere.</p><p>So where does it come from?</p><p>First, you have to understand how loans are priced and how mortgage lenders and loan officers earn income. Each morning mortgage companies create rate sheets for loan officers. The rates usually change slightly from day to day. In volatile markets they change several times a day. On the rate sheet, there are many different programs, including the thirty year fixed rate.</p><p>There will be one column that lists several different interest rates and another column that lists the cost for that particular rate. For example:</p><table><tbody><tr><th><div>Rate</div></th><th><div>Cost (points)</div></th></tr><tr><td><div>6.250%</div></td><td><div>2.000</div></td></tr><tr><td><div>6.375%</div></td><td><div>1.500</div></td></tr><tr><td><div>6.500%</div></td><td><div>1.000</div></td></tr><tr><td><div>6.625%</div></td><td><div>0.500</div></td></tr><tr><td><div>6.750%</div></td><td><div>0.000</div></td></tr><tr><td><div>6.875%</div></td><td><div>(0.500)</div></td></tr><tr><td><div>7.000%</div></td><td><div>(1.000)</div></td></tr><tr><td><div>7.125%</div></td><td><div>(1.500)</div></td></tr><tr><td><div>7.250%</div></td><td><div>(2.000)</div></td></tr></tbody></table><p>In the above example, 6.75% has a “par” price, which means it has a zero cost. The lower in rate you go, the higher the cost, or points. A point is equal to one percent of the loan amount. The parentheses in the cost column for the higher interest rates indicate a negative number. For example, (1.500) equals -1.500, which means instead of having a cost associated with the loan, the lender is willing to pay out money for those interest rates. This is called premium or rebate pricing.</p><h2>Zero Cost Loans</h2><h3>How Mortgage Companies and Loan Officers Make Money</h3><p>The above rate sheet is not a rate sheet designed for public review. In fact, most lenders have a policy that the public cannot see their internal rate sheet. This rate sheet is designed for loan officers and the cost column is the loan officer’s cost, not the cost to the borrower. When the loan officer gives you an interest rate quote, he will add on a certain amount, usually one to one and a half points. Most companies leave it up to the loan officer’s discretion how much to add on to the base cost. However, they usually require at least a minimum add-on, which is usually one point.</p><p>The loan officer’s commission depends on his split with the company, which varies. He receives a portion of the add-on and the rest goes to the company.</p><p>If we assume the loan officer is adding on one point, and you were willing to pay one point for your loan, then your rate would be (according to this rate sheet) 6.75%. You would pay one percentage point and receive an interest rate of six and three-quarters. If you wanted a lower rate and were willing to pay two points, you could get 6.5%. If you wanted a “no points” loan, then your rate would be 7%. The loan officer and the mortgage company would split the one point rebate, listed as (1.000) on the rate sheet.</p><p>See how it works?</p><p>In addition to the cost noted on the rate sheet above, lenders have certain other fees they collect, too. These can include document fees, processing fees, underwriting fees, warehouse fees, flood certification fees, wire transfer fees, tax service fees, and so on. Usually, you will not be charged all of these fees, it is just that different lenders call them different things. Some of them are legitimate costs to the lender and some of them are simply fees designed to generate additional income to the mortgage company. They are customary in today’s mortgage market and can vary from around $600 to $1,300. In addition, there will usually be an appraisal fee and a credit report fee. Appraisals and credit reports are usually contracted out to independent companies even though these are considered to be lender fees.</p><p>Note that it is common for companies who charge higher fees to have a slightly lower interest rate and companies that charge lower fees will usually have a slightly higher interest rate. So if you shop entirely based on fees, you may actually spend more money in the long run because your interest rate may be higher.</p><p>The point is that if you want a “no points - no lender fees” loan, then on our rate sheet above, you may get an interest rate of 7.125%. That is because the loan officer has to bump the interest rate even further than on a “no points” loan in order to cover his own company’s fees.</p><p>If you want a “no cost” loan, then the loan officer has to bump your interest rate even further. That is because all of the costs on your purchase or refinance do not come from the lender. The escrow or settlement company involved in your transaction will charge a fee that must be paid. The lender will require title insurance and the title insurance company charges a fee for providing this insurance. If your new lender requires information from your homeowner’s association (if you have one) then the homeowner’s association will most likely charge a fee for providing those documents. If you are refinancing, your current lender will usually charge at least two fees: a demand fee, and a reconveyance fee. The demand fee is charged simply for providing payoff information. The reconveyance fee is charged because your current lender prepares a document that releases your property as collateral for their outstanding loan. This document is called a reconveyance.</p><p>These charges will add about one additional point to how much the loan officer must collect in premium pricing in order to cover the costs associated with your refinance or purchase. For a zero cost loan, he will normally need to collect somewhere in the neighborhood of two and a half points. Because points are a percentage of your loan amount and most of the costs are fixed, it takes fewer points to provide zero costs on higher loan amounts. On smaller loan amounts it takes more. One percent of $200,000 is $2,000 and one percent of $100,000 is only $1,000, so you can see how it is easier to cover costs on larger loans.</p><h3>Does it make sense to do a zero cost loan?</h3><p>On a $200,000 thirty year fixed rate loan, the difference in monthly mortgage payments will be about $87, using the example rate sheet on the first page. Over thirty years, it works out that you will pay more than $30,000 extra for getting a zero cost loan. So if you intend to remain in the home for a long period of time it just doesn’t make sense.</p><p>Suppose you intend to stay for only five years. On a purchase, using the $200,000 example, if you stayed longer than fifty-five months, it would make more sense to pay your own costs and get the lower interest rate. If you kept the loan for a shorter time, then it makes more sense to pay zero costs and get a higher interest rate.</p><p>Except for one thing.</p><p>If you knew you were only going to be staying in the home for five years you would probably not want a thirty-year fixed rate, anyway. You would get a loan that has a fixed payment for the first five years, then convert to an adjustable rate or whatever fixed rates are five years from now. These loans have an interest rate almost a half percent lower than thirty year fixed rate loans. Since it is practically impossible to do a zero cost loan on this type of loan, you would have to compare a zero cost thirty year fixed rate loan to paying points on a loan with a fixed payment for five years.</p><p>The difference in payments would be about $150. The two and a half point rebate equals $5,000. Working out the math, if you stayed in the home longer than thirty-three months, it would make more sense to pay the points and get the loan with the five-year fixed rate.</p><p>Finally, carry the discussion one step further. Suppose you know you are going to be in the new loan for less than three years? Doesn’t it make sense to get a “zero cost” loan then?</p><p>No.</p><p>Then you get an adjustable rate loan. As long as the start rate is two percent lower than the current fixed rate, you cannot lose. The first year you will save a lot of money. The second year you will probably break even. The third year, you will probably give up some of the savings from the first year, but not all of it.</p><p>Zero cost loans just don’t make sense for most homebuyers.</p><p>But they sound really good in an advertisement!</p><h3>Exceptions:</h3><ul><li>On a FHA Streamline Refinance Without an Appraisal (not a purchase - which is what the article talks about), it makes sense to do a zero cost loan. This is mostly because the new loan has to be exactly the same amount as the existing balance of the current loan.</li><li>If the homebuyer only has enough money for a down payment and none to cover closing costs, PLUS no arrangement can be made for the seller to pay closing costs, then zero cost may make sense. (However, I would still recommend negotiating terms with the seller - be willing to pay a higher price in exchange for the seller paying your costs.)</li></ul><p><br></p>

The No-Cost Thirty Year Fixed Rate Mortgage

<p><br></p><div class="se-component se-image-container __se__float-none" contenteditable="false">      <figure style="margin: 0px;">            <img src="https://library-ihouseprd.b-cdn.net/blog/considering-offers.jpg" data-origin="100," alt="" data-proportion="true" data-size="588px,330px" data-align="none" data-file-name="considering-offers.jpg" data-file-size="0" origin-size="1280,720" name="considering-offers.jpg" style="width: 588px; height: 330px;" data-index="3">  </figure></div><p><br><span style="font-size: 14px;"><span style="font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: left; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; color: rgb(0, 0, 0); display: inline !important;">When reading an offer, keep in mind that you are out to get the best price AND the best terms for you. If you focus solely on the price, you may overlook terms that could be favorable to you as a buyer.</span>Some terms that may work in your favor:</span><br><br></p><ul><li style="font-size: 14px;">higher-than-market-interest in a second mortgage for your home</li><li style="font-size: 14px;">the buyer will pay for most or all of the closing costs</li><li style="font-size: 14px;">the buyer will take care of any repairs</li><li style="font-size: 14px;">quick close - the buyer is pre-approved and ready to close in a timeframe that best suits you</li><li style="font-size: 14px;">all-cash deal</li></ul><p><span style="font-size: 14px;">When reading through offers, remember to look at the whole package. Take the time that you need to assess what is being offered and if it meets your needs.</span></p><p><br></p>

Considering Offers

<p>Title Insurance: As a homebuyer, the term is probably familiar - but is it understood? What is your dollar actually paying for when you purchase a title policy?</p><p>Title Insurers, unlike property or casualty insurance companies, operate under the theory of risk elimination. Title companies spend a high percentage of their operating income each year collecting, storing, maintaining and analyzing official records for information that affects title to real property. Their technical experts are trained to identify the rights others may have in your property, such as recorded liens, legal actions, disputed interests, rights of way or other encumbrances on your title. Before closing your transaction, the title company will proceed to clear those encumbrances which you do not wish to assume.</p><p>This theory is different from that of most other insurance where, for example, rates and anticipated losses are based on actuarial studies and premiums are pooled on the assumption that a certain number of claims will be made. The distinction is important: title insurance premiums are paid to identify and eliminate potential risks and claims before they happen. Medical and casualty insurance premiums, for example, are paid to insure against an unpredictable future event, knowing that risks exist and claims will occur. Furthermore, title insurance involves a one-time premium, paid when you close the real estate transaction, while property, casualty and medical insurance require regular renewal premiums.</p><p>The goal of title companies is to conduct such a thorough search and evaluation of public records that no claims will ever arise. Of course, this is impossible -- we live in an imperfect world, where human error and changing legal interpretations make 100% risk elimination impossible. When claims arise, professional claims personnel are assigned to handle them according to the terms of the title insurance policy.</p><p>As in all competitive business environments, rates vary from company to company, so you should make comparisons before deciding on a particular title company. Your real estate professional can help you do this. In addition, there are many helpful customer services provided by title companies which you and your real estate professional may find helpful to your transaction.</p><p>The issuance of a title insurance policy is highly labor-intensive. It is based upon the maintenance of a title plant, or library of title records, in many cases dating back over a hundred years. Each day, recorded documents affecting real property and property owners are posted to these title plants so that when a title search on a particular parcel is requested, the information is already organized for rapid and accurate retrieval. This investment in skilled personnel and advanced data processing represents a major part of the title insurance premium dollar.</p><p>Article by CLTA</p><p><br></p>

Title Insurance - Where Does Your Dollar Go?

<p>When purchasing a piece of property, it is important to be aware of any environmental liabilities associated with it. For example, you should find out if there are any registered underground tanks within several miles of the property, known contaminated properties in the neighborhood, or property owners who have been fined by the government for failing to meet environmental safety standards.</p><p>Before, it took a costly site investigation to acquire this type of information, but now there are online environmental databases available at a fraction of the cost. Anyone can access reports on otherwise hard to detect environmental issues. With these databases, it is possible to obtain a list of hazards near a property, or spills and violations attributed to businesses nearby.</p><p>Some reputable databases include VISTA Information Systems, located in San Diego, California, which allows you to register and search the data bank for free, and E Data Resources, which is located in Southport, Connecticut. These services are all relatively inexpensive, but can provide you with priceless information that is useful before you make a purchase.</p><p><br></p>

Environmental Issues

<p style="text-align: center;"><span style="box-sizing: border-box; color: rgb(0, 100, 0);"><span style="box-sizing: border-box; font-size: 20px;"><strong>Please come see me this Saturday or Sunday where I will be performing in the</strong></span></span></p><p style="text-align: center;"><span style="box-sizing: border-box; color: rgb(0, 100, 0);"><span style="box-sizing: border-box; font-size: 20px;"><strong>Annual Christmas Concert at Key Largo Babtist Church MM 106.5 Bayside</strong></span></span></p><p>&nbsp;</p><p><strong></strong></p><div class="se-component se-image-container __se__float- __se__float-center" contenteditable="false"><figure style="margin: auto; width: 588px;"><strong><img alt="" src="https://idx-acnt-ihouseprd.b-cdn.net/AR974275/file_manager/Key%20Largo%20Babtist%20Church%20Christmas%20December%2015%2C%202018.jpg?width=500&amp;height=743&amp;aspect_ratio=500%3A743" data-origin="100,743" data-proportion="true" data-size="588px,743px" data-align="center" data-index="0" data-file-name="Key%20Largo%20Babtist%20Church%20Christmas%20December%2015%2C%202018.jpg?width=500&amp;height=743&amp;aspect_ratio=500%3A743" data-file-size="0" style="width: 588px; height: 743px;"></strong></figure></div><p></p><p><br></p>

It's Christmas-A Concert December 15th & 16th Key Largo Babtist Church

<p>Not all agents work the same way. The most important attribute of an agent is that he/she is well connected to the real estate industry. He/she should know the market and provide information on past sales, current listings, his or her marketing plan, and at least 4 solid references. In addition, you also want to look for an agent that is honest, assertive, and one that best understands your needs.</p><p>Try to go with a local agent. They can better serve your needs because they should be more familiar with the local market conditions, local prices, and what’s hot or not in your community.</p><p><br></p>

Finding the Right Agent

<p style="text-align: center;"><span style="box-sizing: border-box; color: rgb(0, 100, 0);"><strong>Please join us for a most Magical Christmas Event!</strong></span></p><p></p><div class="se-component se-image-container __se__float- __se__float-center" contenteditable="false"><figure style="margin: auto; width: 588px;"><img alt="" src="https://idx-acnt-ihouseprd.b-cdn.net/AR974275/file_manager/Children's%20Christmas%20Musical.jpg?width=350&amp;height=520&amp;aspect_ratio=350%3A520" data-origin="100,520" data-proportion="true" data-size="588px,520px" data-align="center" data-index="0" data-file-name="Children's%20Christmas%20Musical.jpg?width=350&amp;height=520&amp;aspect_ratio=350%3A520" data-file-size="0" style="width: 588px; height: 520px;"></figure></div><p></p><p><br></p>

The Children's Christmas Musical is Sunday,December 9, 2018

ArticleDirectorySimple

<h2><strong>Recent Articles</strong></h2><p>Stay up to date with the latest news from Born to Sell the Keys by checking out the articles below.</p>

Our Blog

Recent Articles