Contact MargaretArchive for the 'Real Estate' Category
Is It True That FHA Loan Costs Are Going Up Next Week?
April 15th, 2011 Categories: Real Estate
Crofton Real Estate Q & A
Q. Is it true that loan costs are going up? If so, how much?
A. April 18, 2011, is the effective date for another big increase in FHA loan costs.
According to Maryland loan originator Alan Gross, the Annual Mortgage Insurance Premium will go up 25 basis points per year. What will that mean to someone who procrastinated on buying?
Assuming they purchase a home for $250,000 with the minumum of 3.5% down required by FHA, their monthly payment will increase by $52.08. That’s because they will have an FHA mortgage insurance premium of $239.59 per month instead of the $187.50 per month for loans placed before April 18.
For a 30–year loan, that adds up to nearly $21,000 extra in loan costs.
Down payment requirements and loan costs have been going up for all loans, in recent months, and this is something to take into account if you’re sitting on the fence deciding when is the “right” time to buy. At some point, the option of buying may just disappear for you. Not many people are in the position to make a 20% down payment – a direction that many experts feel we’re headed.
A tougher loan market impacts home sellers as well as buyers. One thing is certain: Borrowing costs aren’t likely to go down any time soon. If buying or selling is in your plans for the near future, think about doing it this spring or summer.
Next Week’s Q&A: Should I sell to my tenants?
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Real Estate Distress Sales Described
January 5th, 2011 Categories: Real Estate
You may have seen the blog I posted last week on my Maryland Real Estate Blog about 31 Detached Homes for Sale in Crofton. If you did, you were probably unpleasantly surprised to learn that over 20% of detached homes on the market now in our community are distress sales. I certainly was disappointed to see that. No one likes to think about any of their neighbors possibly losing their home.
If that should happen, however, we certainly hope that a new owner will come along quickly. Could that new owner be you or someone you know? Perhaps this video will help you make sense of the terms used to describe “distress sales” in this market:
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Why Sell Your Crofton Home in December, Not January
December 8th, 2010 Categories: Real Estate
The top 3 reasons to list your Crofton area home for sale in December:
December home-shoppers are highly motivated. Anyone who makes an appointment to view your home is serious, because window-shoppers have other options in December… at the mall.
My daughter’s home sold last year during the holidays – yes, in this economy. And several years ago, we sold our home on Elwyn Avenue during this season. December is often one of my best months in real estate, so I know from personal and professional experience that this is a good strategy for anyone thinking of selling in the next few months.
Of course, homes do sell in January and February, but wouldn’t it be nice to beat the competition and start the new year with a “sold” sign in your yard? The first step is to find out what your home is worth in this market, so let’s get started!
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Focus on Crofton is my way of attracting new home buyers to the greater Crofton area, while keeping current residents informed. For more information about real estate in Maryland , please contact Margaret Woda at Long & Foster Real Estate, Inc. or simply click on a button below for information you can review online at your own pace:
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FREE Real Estate App for iPhone and iPad
November 3rd, 2010 Categories: Real Estate
All the real estate information you need—right at your fingertips.
Download your FREE real estate APP today!
Your VIP Access Code: 21114
With this FREE real estate APP for your iPhone and iPad, you can…
- Search for homes in Crofton or anywhere el - anytime, anywhere with your iPhone or iPad
- Search for nearby properties using GPS technology, or by entering a specific address
- Refine your search based on property type, price range, number of bedrooms, and more
- Save notes, photos, and information about your favorite properties
- Receive alerts that will let you know when a property meeting your criteria has been added to the market
- Find information about the demographics of each neighborhood, including population characteristics, education, and the average income of local residents
- Get school data, including all public and private schools located in the community
Download your app in 5 quick steps – it only takes a minute:
1. Access Apple’s APP Store directly from your iPhone or iPad, or online via your computer.
2. Once you are in the store, enter “Long & Foster” in the search field.
3. After you click “Install”, a window will appear where you will type in your access code 21114.
4. Now click “Download” to complete your installation.
5. Begin your home search anywhere, anytime.
This Long & Foster real estate APP is available now for iPhone and iPad. New releases for other smart phones are coming soon, so check back later for the announcement.
I used it myself this weekend, when visiting Northern Virginia, and found it to be very easy and user friendly. Hopefully you will, too.
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Do You Qualify for a Mortgage Today?
October 4th, 2010 Categories: Real Estate
Some Crofton Maryland homeowners might not qualify for the mortgage they already have, if they were making application today. That’s because lending standards are so much stiffer now than they were in the past.
Nearly one-third of all Americans do not have adequate credit scores to qualify for a mortgage now, according to Steve Cook, writing for Real Estate Economy Watch. This is based on analyzing more than 25,00 loan quotes and purchase requests on Zillow Mortgage Marketplace between September 1–15, 2010.
And remember, rates are UNDER 5%… Just imagine how many fewer people would be able to finance a home at the interest rates we saw a few years ago - at 6 or 7% (not to mention the 10%+ of a few decades ago).
The majority of today’s borrowers have a credit score of 620–720, and their rate will graduate depending on their credit scores – about .12 percent for each 20–point credit score increase. The low advertised interest rates you see online or in the media are reserved for borrowers with 720+ credit scores.
Do you know your credit score?
Crofton home sellers are affected by the new tougher loan standards, as well, because fewer prospective home buyers are able to qualify for a loan than in recent years. Credit scores are not the only issue, however… Today’s higher down-payment requirement makes for a double-whammy.
Zero-money-down Conventional loans have been replaced with 20% down Conventional loans (that would require a $60,00 cash down payment for purchasing a $300,000 Crofton townhome). VA and FHA financing are still available, however, and most Crofton homes fall within the loan limit guidelines of these programs.
My crystal ball is not showing any softening of lender requirements in the near future, so it’s critical for all of us – even if we’re not planning a move in the next year or two – to invest a little time improving our credit scores. I highly recommend you check out the Federal Trade Commission website offering Facts for Consumers about credit scores: how to get one, how to correct errors, and who else can access your credit report.
After all, you never know when your dream house will go on the market at a bargain price… you’ll want to qualify for a mortgage if that happens.
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For answers to your real estate questions about Bowie, Crofton, Davidsonville, Fort Meade, Gambrills, Odenton and other communities in Anne Arundel County or nearby Prince George’s/Howard Counties, Maryland, contact Margaret Woda at Long & Foster. If you prefer, simply click on a button below for information you can review online at your own pace.
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