The 3.5% down payment on FHA loans could be more expensive for buyers than expected. Beginning April 1, 2013, the mortgage insurance premium will go up by .1% to 1.35% which may not even be noticeable to most would-be homeowners.
The staggering increase will occur on 6/3/2013 when FHA’s policy on the duration of the required mortgage insurance will be increased for the life of the mortgage. It basically doubles the amount of total MIP if the loan is paid to term.
Below is an example with a purchase price of $175,000 with 3.5% down payment at 4% mortgage rate on 30 year term.
Regarding the current MIP duration: When the unpaid balance reaches 78% LTV of original purchase, the MIP can be released. In any event though, the minimum time must be five
“Mansion” is the Wall Street Journal’s entry into the high-end real estate magazine world. Well, not quite a magazine — it’s an extra section they run on Fridays. It’s a nice diversion for those who want to read about really rich people selling their properties. More than that, it could actually be an important source of information if you decide to buy a vineyard in the middle of Los Angeles (Bel-Air, actually — that one was featured two weeks ago).
It was another article that caught my eye on that Friday, though; one that dealt with a topic we agents have long debated. The article was headlined “THE BEST DAY TO LIST A HOME IS…”. It summarized an elaborately executed study by a national brokerage revealing hard statistics on which day of the week is
Once again, it’s that part of the year when we face tax preparation time. This whole process is about as painful as any product you can find on the drug store shelf with the word, “Preparation,” written across it.
It’s especially difficult for people like me, whose idea of high finance is being able to locate the nearest ATM machine. We hear that there are big changes in the tax laws today. But if we look back in history, probably the basic premise is the same.
It goes like this, you work, sweat and toil as many hours as possible, give a portion of those earnings to the government and keep whatever is left over for things like patching the holes in the bottom of your shoes or the tent you are forced to list as your address. In fact, originally this
There is a lot of optimism regarding house prices. The most recent Home Price Expectation Survey projects a 3% — 3.5% increase in values for each of the next 5 years. We concur that most parts of the country will see varying levels of appreciation over that time. However, we must realize that we will not see 2006 values any time soon.
Barclays’ U.S. residential credit strategy team recently predicted that 2006 values would return in 2021. From an article in DSNews:
“While the floor appears to have materialized, they stress that home prices are likely to recover slowly over the next 4 to 5 years.
“We expect on average a 3-4 percent annual increase in home prices [nationally] in coming years,” they said in an updated market outlook.
Lewes Delaware, the first city in the first state, should be on your short list of places you'd like to live after you retire. Once you explore the rich history and experience the culture, you'll be shopping for real estate in Lewes.
The city, founded around 1631, is the perfect place for the history buff and antique lover. Take a four hour educational cruise from Fisherman's Wharf and learn about the historic Harbor of Lewes. Walk through the churchyard of St. Peter's to find graves dating back centuries.
Lewes offers an array of shopping opportunities and Second Street is the place to find them. Local shops offer items ranging from clothing and jewelry to antiques. Browse through the art galleries and specialty shops for unique artwork created by a
The National Association of Homebuilders recently released its Improving Markets Index for the month of February. The report attempts to identify U.S. metropolitan areas in which the economy is improving, demonstrating "measurable and sustained growth".
259 U.S. markets are qualified as "improving" this month, a 17-market jump from the month prior and includes participants from all 50 states as well as the District of Columbia. Experts point to improving market conditions in at least one market in all 50 states as a strong indication that the housing recovery is gaining substantial momentum.
This increasing momentum may suggest that now may be a very good time to purchase a home. Compared to September 2011, when there were just 12 improving metro
Some of Coastal Delaware’s wealthiest buyers may be getting a mortgage without putting a single dollar down. And we aren’t talking about single-bedroom fixer-uppers, either!
It's called 100% financing, and, at first blush, it looks suspiciously like a version of the strategy that sent the economy reeling in 2008. But lenders feel that well-heeled Rehoboth Beach residents who are getting a mortgage through these programs are totally different. How so? you may ask.
For openers, these loans are offered only to the super-qualified: those with serious investment portfolios they can use as collateral. That means getting a mortgage with zero cash for the down payment. That can carry an additional tax benefit, since the borrower won't have to pay a
Many have reported on Robert Shiller’s recent comments on the investment aspect of homeownership. Shiller, a Yale professor and co-founder of the Case-Shiller Home Price Index, is famous for making provocative comments on house prices and the financial benefits of owning a home. In a recent Bloomberg Television interview, Shiller responded to a question about homeownership as an investment this way:
“So, why was it considered an investment? That was a fad. That was an idea that took hold in the early 2000′s. And I don’t expect it to come back. Not with the same force. So people might just decide, ‘Yeah, I’ll diversify my portfolio. I’ll live in a rental.’ That is a very sensible thing for many people to do.”
Many communities in Coastal Delaware and around the US are seeing their energy costs increase; sometimes dramatically. Whether you are energy conscious or just trying to save money, there are many steps you can take to lower your Lewes home bills while helping the environment at the same time
Below are several energy-saving measures to help you save money either in your current house or future residence.
Heating and cooling
Keeping your home at a comfortable temperature uses more energy than anything else.
Seal windows and doors to prevent air leaks, and close doors and air vents to rooms that are not often used.
Changing filters in your heating system monthly can also help it run more efficiently, with the added bonus of increasing the air
Paying off the mortgage on your Coastal Delaware home faster not only means that you’ll be able to enjoy the peace of mind that comes with completely owning your property earlier, but you may also save thousands of dollars in interest payments.
Below are seven clever tips to help you get your mortgage payments on the fast track.
1. Save for a large down payment
Pay as large a down payment as you can reasonably afford. The more you can put down, then the less you’ll have to borrow from the bank.
2. Read the fine print
When you are choosing a mortgage, look at the fine print to find out if any restrictions apply to paying early. Some lenders will charge you for making extra or early payments.