When the bottom fell out of the mortgage market, potential home buyers looked at the ARM loan as being the worst loan to choose. The ARM has its place in the mortgage and refinance world, but that does not mean it should be used by people who can only afford the lower repayment rate. Choosing between a fixed rate and ARM loan, the home buyer should look at all the costs of each loan before making the final decision.
A fixed rate loan will cost the new homeowner more money, hands down. But, this higher loan payment comes with the benefit of never raising during the loan maturation. The same mortgage payment the homeowner makes on the first month of the loan is the payment they will make throughout the loan. The ARM, on the other hand, cannot say the same.
The ARM, or adjustable rate mortgage, is available for new home loans and refinance loans. The ARM is often blamed for the rise in foreclosures in many cities. The ARM payment often starts out lower and then rises over time. The homeowner could begin repaying the loan with an interest only option and a very low payment. When the loan adjusts, that payment could double or even triple depending on the current interest rates.
If the fixed rate or ARM loans both offer good benefits, the home buyer could be looking for a hybrid loan. A hybrid loan offers both ARM and fixed rate characteristics. There are many different types of hybrid home loans, so the homeowner looking to refinance or the potential home buyer shopping for the right loan will need to speak with their lender about the hybrid loan options. Now on to the choice…
The trouble with many novice home buyers the lure of the ARM loan. The ARM may be pushed by the lender due to the lower upfront payment. If, during the adjustment of the loan, the homeowner will not be able to keep up with the payments (even hypothetically) they should not enter into an ARM. These loans are great for people who buy a home for a great deal and believe the value of the home will rise before the loan adjusts. This is the art of investing and not traditional home buying.
Homeowners can often afford the fixed rate loan by choosing a smaller home or a home with fewer features. If the home price is lower and thus the mortgage lower, the payment will be lower. It is better to afford the home you live in then lose the home you love.
A must-read from the Washington Times: On and on go the professional alarmists - America’s housing sector is down and will stay down for a long time to come. Fact: The bursting of a severe housing bubble nearly pushed the American economy over the edge last year. But does that alone make a case for long-term distress? Take a look at the housing picture in its entirety, and count us among those who don’t buy the despair.
Let’s see, for example, how population affects the housing situation. In America, alone among today’s wealthy nations, is on a path of solid population growth. This is good, notwithstanding the harum-scarum alarms by those who see disaster impending from a “population explosion.”
The U.S. population was approaching 300 million in 2000. Quite solid projections by the Census Bureau see the number at about 400 million people in 2100.
Why is the U.S. growing, while other modern nations shrivel up? First, our total fertility rate is about 2.1 children per woman - a magic number in the demographer’s kit, because that’s what it takes to “replace” a society. Sooner or later, Mom and Dad pass on (sorry to break the news), and they must be “replaced” by two children. The extra 0.1 accounts for children who do not live to reproductive age.
A strong relationship exists between America’s “replacement fertility” families and what/where they call home. Much more than their counterparts in Europe and Japan, Americans inhabit single-family detached houses. There is room for two, three - or more - children to play in the backyard, and the nice sense of privacy those children have because they live in their own rooms. Residents of other large, modern and wealthy nations tend to live in apartment nations, where space limitations put a damper on the idea of having a big family.
The coming housing boom will not only employ carpenters, electricians and roofers, but real estate lawyers, policemen and firemen, teachers and athletic coaches to begin a very long list. It was once said that the automobile industry was the great American job producer. No more. That honor surely goes to housing.
America’s history of successfully absorbing large waves of immigrants is a lightning rod for controversy, but the historical record is clear. New immigrant groups - be they German, Irish, Chinese, Italian, Jewish, Polish or Greek - are at first greeted with suspicion. Then they work hard, make lasting contributions and end up being central to America’s cultural fabric.
Mexican immigrants are the hated group du jour but move into the mainstream rapidly. Today’s landscapers and housekeepers are raising tomorrow’s engineers, judges and entrepreneurs. Today’s immigrants, like others before them, will leave the slums and barrios to chase the American dream in a leafy suburb.
At present, about 1 million “net immigrants” (i.e., immigrants minus emigrants) arrive in America each year, so 20 years down the road there will be about 20 million additional Americans (plus their natural growth once here). They will either live in the streets, or the housing market will bloom. This is hardly the stuff of a housing crash. American cities may have problems, but they do not approach Calcutta and its twin Howrah, where sleeping on the street is common, notwithstanding India’s remarkable economic boom.
The bright future we envision for housing in America also tells us a lot about the infamous bubble in that sector and the bright side of all economic bubbles.
Remember the dot-com bubble of the 1990s? Despite suffering a truly spectacular burst, it laid the groundwork to go from dial-up Internet to wireless, and now computing in the cloud. It made e-mail and e-commerce part of our daily lives and gave us near-instant access to all manner of human knowledge. Many of the entrepreneurs who made it happen were immigrants. If that’s an impressive upside, imagine how we’ll benefit from a rebound in housing, something even more essential to us than our Facebook pages.
Housing will come back stronger than before because America possesses the essential ingredients - a growing, dynamic population and a resourceful spirit to overcome burst bubbles - that make us citizens of the First Universal Nation. We should revel in that. Far from a housing-led era of gloom, it guarantees that this will be the second American century.
People are looking for the next great deal and when that buyer is talking about spending millions instead of thousands, the stakes and the rules change dramatically. Despite the fact that much of the real estate market has faltered over the last few years, there are home buyers out there that have been shielded from the recession. These home buyers can walk into a real estate agency and ask for a listing of million dollar homes - will you have that listing?
The interesting thing about luxury real estate is the price point and the variable separation between the luxury real estate market and the traditional real estate market. Home buyers will money to spend do not want to know the true cost of ownership or the fact that the local water bill is slightly higher than the surrounding area. They want to supply their real estate agent with a list of needs and have a home available when they are ready to buy.
On the flip side is the seller that is trying to sell off a million dollar home. Luxury real estate is all about patience even when the seller is hard pressed to get rid of the home. Again, when people have money, they know they have the buying power to choose the piece of luxury real estate they want, rather than a piece they need. Sellers have to make sure their homes are the BEST of the best and in optimal condition in order to sell fast and sell first.
When trying to sell a luxury home, the open houses and word of mouth recruiting that may work for a less expensive home is not going to cut it. There are less buyers with the buying power to land a mortgage for a luxury home and that means extra work for the real estate agent. In addition to the open houses, the agent needs to publish the home all over the Internet, in local newspapers, on the front page of their website and in print magazines. These listings need to be refreshed often and must include a huge list of pictures showing off the BEST parts of the luxury home.
You can sell a luxury home even when the rest of the world isn’t buying and while the work and labor will be hard, the commission is well worth the time.
There is money to be saved in the real estate market and it has nothing to do with home foreclosures. Not every home on the market was finished before the bottom fell out of the new home sales. Many builders were unable to finish their current projects before the market tanked and that left a huge inventory of homes that were in need of work before they could be move in ready. These homes are considered unfinished and that means money in your pocket.
There are several forms of unfinished home on the market today, but the start homes are the most money saving for the potential buyer. The unfinished starter home will often offer a main level that is move in ready with a second level and / or basement that have not been completed. These homes can be used as a primary residence while the remainder of the construction is completed.
Other types of homes that fit into the unfinished category include homes that have planned garages or additions that were started but not completed. If the landscaping is not finished, the home could also be listed as unfinished.
The Builder and the Unfinished Home
If the builder is still in the picture, the home could be finished according to the original plans with the purchase price being higher. The buyer could help to keep the price of the home lower by talking with the lender about the proposed upgrades on the home and cutting out some of the more expensive upgrades that are causing the price to increase. Expensive decking, landscaping and basement finishing can cause the price to jump dramatically. While the lender may not agree to all of the changes, there is no harm in asking for the bare essentials in order to keep the price low.
Lending and the Unfinished Home
When it comes to getting a mortgage for the unfinished home, the lender may require the home be mostly finished before they will honor a mortgage. This is due to the security the lender has in their ability to resell the home in the case of foreclosure. If the bank is requiring landscaping or minor repairs before the mortgage will be approved, the buyer could work with the builder to complete these items. The buyer must remember that the builder does not have the money to put into this home and is selling the home for a cheaper price because it is unfinished. This means the buyer may have to fund the repairs or landscaping in order to qualify for the mortgage.
Buying a perfect home in the perfect neighborhood does not mean having the perfect neighbors. Unfortunately, many home buyers never think to meet the neighbors around their home befo0re they buy and that can lead to disaster. The people living on either side of the home or even down the street could be there as long as you are, should you not know a little about who they are?
A friend of mine recently moved into a new neighborhood and when the kids started school everything seemed perfect. Then, one day after school her daughter complained of losing a friend because she would not talk about religion with the young girl on the bus. What could she do?
When neighbors put you in a tight spot or do something you don’t like, the best solution is common kindness.
• Approach the neighbor on friendly terms. • Introduce yourself and start a conversation. • Lead up to the problem at hand, but never make it seem like the issue is the only reason you are talking. • Discuss solutions to the problem.
Once the initial conversation is over, it is important to continue the relationship while living in the neighborhood. Having some sort of friendship with the nearest neighbor is not only cordial, but a great choice in personal safety and support.
• If there is a storm coming through – the preparation could be divided. • If there is there is an emergency – a babysitter is there. • If the lights go out – the support is closer than you think.
The Unruly Neighbor
Of course, there is more than one type of neighbor in the world and the unruly neighbor is the one that no one wants to live next to. These neighbors are partying all the time with cops at the home and music playing until the wee hours of the morning. A confrontation seems like the worst solution, and it probably is. Often, homeowners who find themselves in this situation will need to involve the law in order to resolve the issues.
The neighbor is a part of the home for all intensive purposes. When walking around a potential new home, make sure to take a trek to the nearest neighbors home and the one beyond that. Finding out there is a bad neighbor being signing the contract can save years of disappointment and grief and all it takes is a bit of time
Fabulously renovated charming Carrollwood home complete with brand new appliances, cabinetry and granite counter top. Home is freshly painted with beautiful tile flooring and brand new carpeting as well.
Spacious kitchen and dinning and living area. Landscaping meticulously manicured. Enjoy private outdoor living and barbecues in the spacious fenced in backyard.
Location is conveniently located to Citrus mall, shopping and restaurants with easy access to Veterans Highway, I-275, airport and downtown Tampa.
This house is MOVE IN READY waiting for a new owner. NOT A SHORT SALE so can close quickly. THIS IS DEFINITELY A MUST SEE and WILL GO FAST!!!!!!!
SHORT SALE. Great Home in one of the most desirable areas of Tampa Bay. Golf Community and Great Clubhouse with so many amenities.
This 3BED 2 BA Home offer Entrace Foyer, Formal Living Room with Wood Floors, Formal Dining Room, Large Family Room with Wood Burning Fireplace, French Doors to Lanai. Spacious Kitchen offers Flat Top Stove, Microwave, Pantry, Eating Area. Large Master Bedroom with French Doors to Pool Area. Chair Rails throughout the Home. Master Bathroom offers custom build Shower/Tub Com bo, His & Hers Sink, Walk-in Closet. Spacious Second and Third Bedrooms with Spacious Closets. Second Bathroom offers Shower/Tub Combo. Office/Den with Built-in Shelves.
Great screened in Pool Area and Lanai with gorgeous view to mature Landscape. Tampa Palms offers a great clubhouse with Pool, Tennis, Golf, Streets great for biking and walking.
Close to I-75,Shops, Restaurants, Movie Theater, Business and much more. THIS IS A MUST SEE HOME!!
The center of the community hosts a 7,900 ft club house with theme park style pool, state of the art cardiovascular center, library and so much more. Live Oak Preserve is close and convenient to the business, entertainment and cultural centers of downtown Tampa...and far enough to create a hometown sanctuary where roots can be firmly planted. With each Live Oak Preserve home, you will be able to "see the forest and the trees" within the award winning designed villages.
SHORT SALE! This very charming moved- in ready home offer 3 bedrooms, 2 bathrooms, 2 car garage in New Tampa - Live Oak!
This 2006 built home features bright, open rooms, vaulted ceilings, crown moldings, very appealing interior paints, hardwood floors, ceramic tiles, wall-to-wall carpet, built in shelves, recessed lighting, and a patio area .The combination living room/dining room boasts large bright windows and bamboo hardwood floors. The owner's retreat features archways and walk-in closets. The master bathroom has dual vanities and a glass walk-in shower that is tiled. Kitchen has Oak cabinets and a breakfast nook with huge bay windows.
Live Oak Preserve has on-site middle and elementary schools, and Wharton high school across the street. Live Oak Preserve amenities include a resort-like pool, 7970sqft club house, parks, walking & biking trails, tennis & basketball courts, ball fields, a fitness center and library.
Listing price may not be sufficent to cover all encumbances, closing costs, or other seller charges and sale of Propery at full listing price may be conditioned upon approval of third parties. Call for details!!!
Green homes provide increased energy savings and healthier indoor air. With people being pickier about the homes they buy today, more than ever before, green home sales and construction is bound to take a huge jump up in popularity in the coming years. According to one report by McGraw-Hill Construction, a 10% hike is expected within the next few years.
What defines a green home? A green home is a house built with eco-friendly materials and energy saving appliances and heating and cooling systems. Taking that definition a bit further, some builders are even including solar panels on the roofs of home in order to increase their viability in a market where the home buyer has ALL the say.
Taking the total cost of ownership into consideration, the green home is more affordable over the life of the mortgage than a standard home. With reduced water and electric bills, the home owner will pay far less in utilities than their traditional home owning counterparts. These savings are enough for some potential home buyers to look for ONLY green homes on their home search.
Transforming a traditional home into a green home, or a semi-green home, is not that hard. Changing out all the appliances for energy star choices and the heating and cooling systems for newer, more energy efficient models is a step in the right direction. Spending another $5000 on solar roof panels could mean a home selling much more quickly even if the price is raised a bit to account for the installation costs of the solar panels.
Other green changes that can be made within a home include tankless water heaters and subfloor heating systems that keep the home warmer in the winter without the need to crank the heat to 76 degrees. Drought resistant landscaping and drip watering systems also offer huge benefits for the green home buyer.
With a greener home, the new homeowner also has the option to shop around for homeowner’s insurance with a discount offered for green home choices. In some cases, mortgage lenders are also offering discounts to potential buyers who choose a green home.
Over time, the purchase of a green home just keeps giving back to the owner as property values will remain higher even when the values of homes in the surrounding area decline.
Without a doubt, green homes are set to be the next big thing in real estate and with the huge advances in energy saving methods, there is surely more to come.
Shopping for a home and shopping smart for a home are two totally different things. Home buyers often walk into a home with the thrill of buying on their back and the beauty of the home sweeping them off their feet. Soon after the sale is final, they find what they thought was the home of their dreams has many flaws. There are 5 aspects of the home to consider when shopping smart.
The Furniture
Taking one look at the staged furniture in a home and the home shopper could fall in love. But where is the television hookup? Just because the television is staged in a certain part of the living space does not mean the cable jack is located in that spot. Once the jack is located, the home shopper will be able to visualize how the furniture would need to be placed around the television. Now, will your furniture fit in that room in the proper way? The Size
Home size may seem huge if the person or couple is moving out of an apartment or condo, but is the space really as big as it looks? This is especially important for a young couple that may have children in the near future or for newlyweds who are moving in together.
A family can take up a lot of space, which could crowd a 1,200 square foot home in no time. The couple, on the other hand, may be moving from separate residences into one home. How will two apartments full of furniture fit into a home that is smaller than the combined square footage of the apartments?
The Extras
Many home shoppers are taken aback with the little, or big, extras in the home. A private pool or hot tub is a great selling feature, but how much money will it cost every month to upkeep that extra? There is also the concern of safety for parents who are buying with small children or pets in the home. Maybe a private pool is not the best choice with a community pool being more feasible for the family.
Taking these small things into consideration is key to shopping for the best home to fit your needs, versus your wants. There is nothing worse than buying a new home thinking it was the home of your dreams only to step inside and realize the home looks nothing like it did when staged with tens of thousands of dollars in borrowed furniture.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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