Freddie Mac reports a slight gain in the 30-year fixed mortgage rate to 6.09 percent during the week ended June 5 from 6.08 percent the prior week, marking a nearly three-month high.
For those on the fence, or waiting for that 'perfect' time to buy, it would appear that now may be that time. There is a good supply of nice homes in the Lake Norman/Charlotte area to choose from, get the 'cream of the crop' while the interest rates are still making it possible to own more home for less.
Friday, June 6, 2008
Friday, May 9, 2008
Before you start searching for that dream home....
Can You Afford That House?
By Lorraine Decker
Prudential Carolinas Realty
Before you start searching for your dream home, you first need to determine a price range you can afford. According to the Federal Housing Administration (FHA), depending on the consumer’s current debt ratio, most people can typically afford to pay 31 percent of their gross monthly income for mortgage payments. For example, if you earn $50,000 annually, then your monthly income is about $4,167. Thirty-one percent of that is $1,292.
There are several online tools to calculate a monthly mortgage you can afford using factors such as your current monthly expenses, down payment and the interest rate. You can also work with a lender to get pre-qualified for a loan. This estimate will help you gauge how much money you may be able to borrow and the monthly mortgage payments.
However, the amount you are able to afford for a home loan should not be your only consideration for determining your price range. With homeownership come other housing expenses.
Utilities
The most obvious of additional housing expenses are utilities—gas, electricity and water. But don't forget about telephone, trash collection, and cable or satellite bills.
Taxes
As a property owner, you are responsible for property taxes. In our area, the rate can vary from town to town, county to county. To get a general idea on how much the tax bill will be for a property, ask the seller for a copy of the previous year's tax assessment. Your real estate professional can help you refine these figures.
Association Dues
Another cost you may incur is homeowner association (HOA) dues. Most condominiums and some (residential developments/subdivisions/neighborhoods) have HOAs, which are legal entities, created to maintain common areas and enforce deed restrictions. As a property owner, you are required to pay the established monthly or annual homeowner association dues. Be sure you factor this cost into your budget.
Maintenance
You also need to consider the upkeep of your home. You should budget for seasonal maintenance such as lawn care, pest inspections and carpet cleaning, as well as unexpected repairs. The amount you budget will depend on the age of the home, as older homes tend to require more repairs such as installing a new roof, painting and replacing older appliances.
Insurance
Depending on the type of coverage and your area, the costs for homeowners insurance each year can be anywhere from a few hundred to thousands of dollars. And, if you live in an area that has high risks for flooding, earthquakes, hurricanes, etc., you may need supplemental insurance.
Remodeling/Upgrades
Unless the home you purchase is picture perfect, you’ll more than likely be adding your personal touch. Therefore, you need add to your housing budget the costs for remodeling and upgrades. According to “Remodeling Magazine’s” 2007 Cost vs. Value Report, the national average for a midrange minor kitchen remodel is $21,185; a bathroom remodel averages $15,789.
Even minor cosmetic fix-ups such as light fixtures, window treatments, carpeting and decorative cabinet knobs can begin to add up.
By determining all the costs associated with homeownership, you can go into your home search with a reasonable price range that will allow you stay within your budget.
I can be reached at (704) 400-7062. Prudential Carolinas Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.
By Lorraine Decker
Prudential Carolinas Realty
Before you start searching for your dream home, you first need to determine a price range you can afford. According to the Federal Housing Administration (FHA), depending on the consumer’s current debt ratio, most people can typically afford to pay 31 percent of their gross monthly income for mortgage payments. For example, if you earn $50,000 annually, then your monthly income is about $4,167. Thirty-one percent of that is $1,292.
There are several online tools to calculate a monthly mortgage you can afford using factors such as your current monthly expenses, down payment and the interest rate. You can also work with a lender to get pre-qualified for a loan. This estimate will help you gauge how much money you may be able to borrow and the monthly mortgage payments.
However, the amount you are able to afford for a home loan should not be your only consideration for determining your price range. With homeownership come other housing expenses.
Utilities
The most obvious of additional housing expenses are utilities—gas, electricity and water. But don't forget about telephone, trash collection, and cable or satellite bills.
Taxes
As a property owner, you are responsible for property taxes. In our area, the rate can vary from town to town, county to county. To get a general idea on how much the tax bill will be for a property, ask the seller for a copy of the previous year's tax assessment. Your real estate professional can help you refine these figures.
Association Dues
Another cost you may incur is homeowner association (HOA) dues. Most condominiums and some (residential developments/subdivisions/neighborhoods) have HOAs, which are legal entities, created to maintain common areas and enforce deed restrictions. As a property owner, you are required to pay the established monthly or annual homeowner association dues. Be sure you factor this cost into your budget.
Maintenance
You also need to consider the upkeep of your home. You should budget for seasonal maintenance such as lawn care, pest inspections and carpet cleaning, as well as unexpected repairs. The amount you budget will depend on the age of the home, as older homes tend to require more repairs such as installing a new roof, painting and replacing older appliances.
Insurance
Depending on the type of coverage and your area, the costs for homeowners insurance each year can be anywhere from a few hundred to thousands of dollars. And, if you live in an area that has high risks for flooding, earthquakes, hurricanes, etc., you may need supplemental insurance.
Remodeling/Upgrades
Unless the home you purchase is picture perfect, you’ll more than likely be adding your personal touch. Therefore, you need add to your housing budget the costs for remodeling and upgrades. According to “Remodeling Magazine’s” 2007 Cost vs. Value Report, the national average for a midrange minor kitchen remodel is $21,185; a bathroom remodel averages $15,789.
Even minor cosmetic fix-ups such as light fixtures, window treatments, carpeting and decorative cabinet knobs can begin to add up.
By determining all the costs associated with homeownership, you can go into your home search with a reasonable price range that will allow you stay within your budget.
I can be reached at (704) 400-7062. Prudential Carolinas Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.
Monday, May 5, 2008
Feds report historic highs for lending standards
Taken from CNNMoney.com on May 5th, 2008
Banks tightening mortgage standards
Fed: Standards on consumer and business loans near historic highs in response to the credit crisis.
Last Updated: May 5, 2008: 2:37 PM EDT
WASHINGTON (AP) -- The Federal Reserve reports that more banks are tightening lending standards on home mortgages, other types of consumer loans and business loans in response to a spreading credit crisis.
The Fed reported Monday that the percentage of banks reporting tighter lending standards was near historic highs for nearly all loan categories.
The survey, conducted in April, found that nearly two-thirds of banks surveyed had tightened lending standards on traditional home mortgages with 15% saying those standards had been tightened considerably.
The current credit crisis began last year with rising defaults in the market for subprime loans, loans extended to borrowers with weak credit histories. Many of those subprime loans were packaged into mortgage-backed securities and sold to investors around the world.
Those investors, however, have pulled back from the subprime market and from other types of credit as losses have soared with the rising mortgage defaults.
As losses have mounted, more and more banks have grown reluctant to make loans and have been tightening up on standards. The Fed has been pumping billions of dollars into the banking system in an effort to encourage banks to keep lending to guard against the threat that the tighter credit could push the country into a deep recession.
The latest Fed survey found that banks tightened their lending standards on not just prime or traditional mortgages, but also on nontraditional mortgages such as "Alt-A" loans given to people who supplied only limited income verification. The survey found that about 32% of the banks responding to the survey had tightened "considerably" their standards for nontraditional mortgages and another 43% had tightened standards in this category "somewhat."
The survey found that only nine banks are currently making loans in the subprime category, and of that group, seven had tightened lending standards either considerably or somewhat.
First Published: May 5, 2008: 2:24 PM EDT
Banks tightening mortgage standards
Fed: Standards on consumer and business loans near historic highs in response to the credit crisis.
Last Updated: May 5, 2008: 2:37 PM EDT
WASHINGTON (AP) -- The Federal Reserve reports that more banks are tightening lending standards on home mortgages, other types of consumer loans and business loans in response to a spreading credit crisis.
The Fed reported Monday that the percentage of banks reporting tighter lending standards was near historic highs for nearly all loan categories.
The survey, conducted in April, found that nearly two-thirds of banks surveyed had tightened lending standards on traditional home mortgages with 15% saying those standards had been tightened considerably.
The current credit crisis began last year with rising defaults in the market for subprime loans, loans extended to borrowers with weak credit histories. Many of those subprime loans were packaged into mortgage-backed securities and sold to investors around the world.
Those investors, however, have pulled back from the subprime market and from other types of credit as losses have soared with the rising mortgage defaults.
As losses have mounted, more and more banks have grown reluctant to make loans and have been tightening up on standards. The Fed has been pumping billions of dollars into the banking system in an effort to encourage banks to keep lending to guard against the threat that the tighter credit could push the country into a deep recession.
The latest Fed survey found that banks tightened their lending standards on not just prime or traditional mortgages, but also on nontraditional mortgages such as "Alt-A" loans given to people who supplied only limited income verification. The survey found that about 32% of the banks responding to the survey had tightened "considerably" their standards for nontraditional mortgages and another 43% had tightened standards in this category "somewhat."
The survey found that only nine banks are currently making loans in the subprime category, and of that group, seven had tightened lending standards either considerably or somewhat.
First Published: May 5, 2008: 2:24 PM EDT
Wednesday, April 23, 2008
Forbes reports good news for Charlotte
Charlotte continues to ride the wave of good real estate news.....CHECK OUT THE STORY
Wednesday, March 26, 2008
Still Growing......
Wake and Mecklenburg Counties reach top 10 lists for growth
Wake and Mecklenburg Counties are growing fast, according to the most recent stats from the Census Bureau. Wake County added 38,841 people in the 12 months ending July 1, 2007, the Census Bureau announced last week - placing it No. 7 among every county in the country in terms of numerical population growth. The 4.9 percent growth, to 832,970 people, put Wake among the top 50 counties in the country by that metric.
Mecklenburg County added 31,739 people, bringing its population to 867,067 and putting it at 10th in the country; its growth rate of 3.8 percent put it No. 82 among all counties.
Rapid growth in North Carolina's two largest metropolitan areas fits in with national trends, the Census Bureau says. Of the 100 fastest-growing counties by percentage growth, 70 were in the South.
Wake and Mecklenburg Counties are growing fast, according to the most recent stats from the Census Bureau. Wake County added 38,841 people in the 12 months ending July 1, 2007, the Census Bureau announced last week - placing it No. 7 among every county in the country in terms of numerical population growth. The 4.9 percent growth, to 832,970 people, put Wake among the top 50 counties in the country by that metric.
Mecklenburg County added 31,739 people, bringing its population to 867,067 and putting it at 10th in the country; its growth rate of 3.8 percent put it No. 82 among all counties.
Rapid growth in North Carolina's two largest metropolitan areas fits in with national trends, the Census Bureau says. Of the 100 fastest-growing counties by percentage growth, 70 were in the South.
Wednesday, March 12, 2008
Local FHA Mortgage Limits
By Lorraine Decker
Prudential Carolinas Realty
As of March 7th the FHA mortgage limits have increased for our region.
This is the first of many changes taking place in response to the stimulus package. HomeServices Lending/a Wells Fargo Company is one of the first banks to up the limits!
The new amounts are:
CHARLOTTE-GASTONIA-CONCORD, NC (MECKLENBURG NC) $303,750
STATESVILLE-MOORESVILLE, NC (IREDELL NC) $271,050
LINCOLNTON, NC (LINCOLN NC) $271,050
There are many advantages that government loans offer our customers: flexible underwriting, the use of non-occupant co-borrowers, and reverse mortgage opportunities. Plus, all FHA loans are fully assumable.
Prudential Carolinas Realty
As of March 7th the FHA mortgage limits have increased for our region.
This is the first of many changes taking place in response to the stimulus package. HomeServices Lending/a Wells Fargo Company is one of the first banks to up the limits!
The new amounts are:
CHARLOTTE-GASTONIA-CONCORD, NC (MECKLENBURG NC) $303,750
STATESVILLE-MOORESVILLE, NC (IREDELL NC) $271,050
LINCOLNTON, NC (LINCOLN NC) $271,050
There are many advantages that government loans offer our customers: flexible underwriting, the use of non-occupant co-borrowers, and reverse mortgage opportunities. Plus, all FHA loans are fully assumable.
Sunday, March 9, 2008
Now is a GREAT time to BUY
By Lorraine Decker
Prudential Carolinas Realty
If you’re ready to buy a home and can afford it, now is a great time to BUY, BUY, BUY. Mortgage interest rates remain very low. In many areas, buyers have a lot of inventory from which to choose and long-term homeownership continues to be one of the best ways for the typical American to build wealth.
Don’t let all of the negative media attention about the “mortgage meltdown” keep you from pursuing your homeownership dream. Mortgage industry woes are primarily limited to subprime loans and other types of creative and comparatively risky financing products. While the mortgage industry stalled briefly to reconsider its more exotic loans, there is plenty of conventional financing available for qualified homebuyers. Interest rates remain at historically low levels – still less than 7% for the typical, 30-year fixed-rate mortgage.
Indeed, the market has changed. It’s gone from a frenzied seller’s market to calmer buyer’s market. In fact, buyers haven’t seen a market this strong in years. When the national median home price dropped for the first time on record, the decline made huge albeit misleading headlines. For starters, there is no such thing as a national real estate market. All real estate markets are local and driven by local factors that include the local economy, housing supply and demand factors and other attributes like geography.
The slight decline followed years of unprecedented steep home price appreciation and the reality is that only a handful of markets experienced price declines. Corrections in markets that experienced exorbitant home price appreciation were expected and signal good news for buyers. According to 2007 third-quarter National Association of REALTORS® (NAR) statistics, the vast majority of the nation’s metropolitan areas showed rising or stable home prices with most areas experiencing modest gains.
Right now there are many homes from which to choose and in most areas buyers don’t have to deal with the harried and hurried competition of multiple bids. The changing market has also changed the inventory landscape to include fewer speculative sellers and a larger share of serious and motivated sellers.
Prospective homebuyers have some time to shop inventory and thoroughly compare home types and prices, amenities, neighborhoods, commutes and other important real estate-related features. And buyers have stronger price negotiation power as sellers compete for their attention by offering concessions or other incentives.
While all real estate markets have ups and downs, Americans continue to consistently build wealth through homeownership. According to the NAR:
· On average, the value of a home doubles every 10 years. During the past three decades, home values have increased an average of 6.6% per year.
· The average homeowner today has 36 times the wealth of the average renter. Homeowners are essentially paying themselves when they pay their mortgages and this means they’re building equity. Homeowners also benefit from some real estate-related tax write-offs like mortgage interest.
· Sixty percent of the average homeowner’s wealth is their home’s equity. For homeowners who’re in their homes for the long-term, home equity typically is their single largest source of wealth.
Because every market is different, it’s a good idea for potential homebuyers to contact a local real estate specialist to learn more about what’s happening in his or her community and real estate market. The current market for the Lake Norman area presents a super time to buy. The bottom line in real estate doesn’t change – if you’re ready to buy and can afford to make a long-term homeownership commitment, it’s always a good time to buy!
I can be reached at 704-400-7062. Prudential Carolinas Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.
Prudential Carolinas Realty
If you’re ready to buy a home and can afford it, now is a great time to BUY, BUY, BUY. Mortgage interest rates remain very low. In many areas, buyers have a lot of inventory from which to choose and long-term homeownership continues to be one of the best ways for the typical American to build wealth.
Don’t let all of the negative media attention about the “mortgage meltdown” keep you from pursuing your homeownership dream. Mortgage industry woes are primarily limited to subprime loans and other types of creative and comparatively risky financing products. While the mortgage industry stalled briefly to reconsider its more exotic loans, there is plenty of conventional financing available for qualified homebuyers. Interest rates remain at historically low levels – still less than 7% for the typical, 30-year fixed-rate mortgage.
Indeed, the market has changed. It’s gone from a frenzied seller’s market to calmer buyer’s market. In fact, buyers haven’t seen a market this strong in years. When the national median home price dropped for the first time on record, the decline made huge albeit misleading headlines. For starters, there is no such thing as a national real estate market. All real estate markets are local and driven by local factors that include the local economy, housing supply and demand factors and other attributes like geography.
The slight decline followed years of unprecedented steep home price appreciation and the reality is that only a handful of markets experienced price declines. Corrections in markets that experienced exorbitant home price appreciation were expected and signal good news for buyers. According to 2007 third-quarter National Association of REALTORS® (NAR) statistics, the vast majority of the nation’s metropolitan areas showed rising or stable home prices with most areas experiencing modest gains.
Right now there are many homes from which to choose and in most areas buyers don’t have to deal with the harried and hurried competition of multiple bids. The changing market has also changed the inventory landscape to include fewer speculative sellers and a larger share of serious and motivated sellers.
Prospective homebuyers have some time to shop inventory and thoroughly compare home types and prices, amenities, neighborhoods, commutes and other important real estate-related features. And buyers have stronger price negotiation power as sellers compete for their attention by offering concessions or other incentives.
While all real estate markets have ups and downs, Americans continue to consistently build wealth through homeownership. According to the NAR:
· On average, the value of a home doubles every 10 years. During the past three decades, home values have increased an average of 6.6% per year.
· The average homeowner today has 36 times the wealth of the average renter. Homeowners are essentially paying themselves when they pay their mortgages and this means they’re building equity. Homeowners also benefit from some real estate-related tax write-offs like mortgage interest.
· Sixty percent of the average homeowner’s wealth is their home’s equity. For homeowners who’re in their homes for the long-term, home equity typically is their single largest source of wealth.
Because every market is different, it’s a good idea for potential homebuyers to contact a local real estate specialist to learn more about what’s happening in his or her community and real estate market. The current market for the Lake Norman area presents a super time to buy. The bottom line in real estate doesn’t change – if you’re ready to buy and can afford to make a long-term homeownership commitment, it’s always a good time to buy!
I can be reached at 704-400-7062. Prudential Carolinas Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.
Subscribe to:
Posts (Atom)
