Our friends at Acre Mortgage posted this on the current mortgage/real estate situation today and we wish to share it with all our clients.

HOUSING IS VITAL TO ECONOMIC RECOVERY

It’s my contention housing will lead the way in turning this economy around. After all, housing is the reason we are in this mess. The corruption and deceptive practice of the sub prime mortgage industry has, in my opinion, facilitated an economic tsunami. It has not only tumbled Wall Street, it has adversely affected most all “main streets” globally.

We must reach out to the most important sector of our population; the young and first time buyers. Most all of us prefer to own, the cost of Real Estate in today’s market offers great opportunities for those folks who still believe the “American Dream” is a reality. It’s unfortunate, however, the consistent rhetoric of the naysayers who voiced uninformed opinions regarding home loans are discouraging too many people to take the plunge into home ownership.

The fact is, mortgage money is plentiful. Processing and underwriting rules have reverted to the sensibility standards of the era prior to the sub-prime money giveaway. Today, Lenders need to verify an applicant’s ability to repay the loan in the evaluation process. No longer will money be lent based on unverifiable income and assets; or for applicants with sub par credit scores. The days when Lender based loan approvals on overvalued properties and under qualified borrowers are over; and will never return.

Mortgage Programs now exist for qualified borrowers with minimum investment and affordable payments. Incidentally, low or no down payment loans should no longer be considered a stigma. It has been proven VA loans, with the no down payment provision, represent the most stable and best performing loans in terms of defaults and payment history. It’s not about the product guidelines; it’s about making it affordable. Before Wall Street greed besieged us, the process of Lenders determining a borrowers’ affordability built this country, built communities, built stability and built hope. Essentially, corporate greed and personal bad decisions made by people who lacked the foresight and understanding of what they were buying, robbed or delayed the ability of the next generation to achieve the same dream.

Fixing the housing market, in my opinion, begins the healing; education is the foundation. Too many uninformed potentials sit on the sidelines waiting. I suspect the waiting is due to the unawareness of what is available and what is happening in this market. In terms of a monthly payment, there are legions of potential homeowners who do not know buying a home can be less expensive that renting. They have no clue that if the purchase contract is structured correctly, the cash out of pocket may represent a little more than a month and a half of a security deposit along with a month’s rent.

Most everyone, including the Real Estate Community, have yet to firmly grasp the premise of the FHA “buy it and fix it” 30 year fixed market rate mortgage. A startling means of purchasing a property, “as is”, that is otherwise “un-mortgageable” due to its condition. The ability to purchase a home, usually undervalued due to its condition, and including repairs/customizing with the financed mortgage, represents one way of reaching out to those potential homeowners. This underused and little known mortgage eliminates the concern of dealing with potentially costly repairs after taking ownership. In addition, the plan ensures the home will be compliant to all local codes. There is a one time closing with the pre-determined repairs escrow and paid to the contractor with the homeowner’s supervision and approval. There are numerous other benefits to this program, the FHA 203-K plan.

The “K” program is one of several plans available to entice those sidelined potentials. Also gaining popularity is the USDA no down payment plan, along with the 100% financing parameters of the VA program and the State backed Home Mortgage Financed Agency (HMFA). Additionally, there are local “smart start” incentives and County and State down payment assistance programs.

The moral of the story is hope. Not only for the many of potential homeowners still renting, but for a country in need of picking itself up and economically moving forward. Revenues generated from the revitalization of the neighborhoods and filling up those vacant and neglected homes will begin the road to recovery. The means to accomplish the goal is simple education for the new group of potential homeowners.

Hopefully, this starts it!

Chuck Reed
creed@acremortgage.com

www.SouthJerseyMortgageGuys.com

If you want to add a fireplace to your existing home, ask yourself what value it brings to you and your property.

1. Is it possible?

With the variety of fireplace options available today, from traditional wood-burning masonry to wall-mounted ventless units, it would be difficult to imagine a situation in which it would be entirely impossible to add a fireplace of some sort.

That being said, local interpretations and enforcement of building codes may dictate details such as the chimney height, the construction of the firebox and flue, minimum clearances around vent pipes, and limits on fireplace emissions--all of which narrows your choices. You’ll need to check with your city or county building department, many of which have current code information online. You also can check state and local building codes at www.statelocalgov.net.

There’s also the question of fuel: If you’ve got the space to safely store stacks of wood (not against the house--a fire hazard--but within convenient proximity) or an existing source of natural gas or propane, then you’ll increase your options.

2. How much will it cost?

Costs for materials and labor to add a new fireplace can run the gamut from several hundred dollars to $20,000 or more. Among the most popular options, a factory-built gas/propane fireplace unit runs about $2,000 for a basic materials package; add to that at least another $5,000 for the cost to hire professional tradespeople to cut a hole in an exterior wall, frame and build a chimney, install the fireplace, and add a surround and mantle.

Figure on spending about half that or less for a fireplace that vents horizontally through the wall--called a direct-vent fireplace—which eliminates the costs of building a vertical flue and chimney extension, and for simpler finishes around the fireplace opening.

An EPA-qualified wood-burning fireplace, which features doors with air-sealing gaskets to regulate how much indoor air it uses for combustion, therefore saving energy and reducing emissions, may cost upwards of $4,000 per unit. The installation and finishing costs of such units, however, is about the same as the natural gas fireplace. A traditional, open-hearth, wood-burning fireplace--like the ones you see in mountain resort hotels--requires a skilled, professional mason and a budget approaching (and often exceeding) $20,000.

The lower end of the cost spectrum includes so-called “ventless” gas or gel fireplaces, and those powered by electricity. Expect to spend about $400, plus another $1,000 to have a professional install and finish those that require a dedicated gas or propane line.

When considering costs, also factor in on-going expenses, namely for fuel and maintenance. According to the U.S. Department of Energy, natural gas is the least expensive utility-supplied heating fuel at a national average of $1.42 per therm (a measure of heating value), followed by heating oil and propane; electricity, meanwhile, is nearly twice the average cost per therm of natural gas. Utility rates vary by geographic region, so check with your local suppliers to accurately gauge those costs; your use of the fireplace will impact ongoing fuel expenses as well.

If you have a readily available (and thus cheap) source of wood, ideally on your own property, it probably trumps the cost of any utility-supplied source. Wood and natural gas are by far the most popular fireplace fuels, combining for 83% of the market, according to the National Association of Homebuilders Research Center.

An annual service contract with a professional fireplace or chimney inspector, around $150, is a relatively inexpensive way to maintain your fireplace with confidence.

3. Will I recoup my up-front costs?

A fireplace generally isn’t calculated separately in a professional home appraisal, though real estate salespeople often consider it to be a hot button among potential buyers. According to the National Association of Realtors(r)' 2007 Profile of Buyers' Home Feature Preferences, 46% of homebuyers said they would pay extra (a median of $1,220) for a house with at least one fireplace, the most popular “desired feature” in the survey.

Still, says certified appraiser and real estate industry author Mark Rattermann, “Probably the best gauge is to look at the number of newly built homes with fireplaces” to measure whether homebuyers want and are willing to pay for them. According to the U.S. Census Bureau, 53% of new homes built in 2008 included at least one fireplace. That’s down from a peak of 66% in 1990, though that drop-off may say more about builders trying to reduce costs than changes in consumer demand, as the latest NAHB consumer preferences survey found that 77% of homebuyers want a fireplace.

Rattermann also suggests homeowners consider a new fireplace in the context of their home’s overall value when trying to estimate its payback potential. “A $10,000 fireplace in a $1 million home is well supported in most markets,” he says, because it’s an expected feature in upscale homes. “But a $10,000 fireplace in a $100,000 home probably isn’t valued as much,” in the context of other spending priorities at that price point.

4. Where will it go?

If you’re thinking payback, put the new fireplace in the most-used room in the house (besides the kitchen). That’s usually the family room or great room. But if your goal is personal enjoyment or perhaps the more practical goal of space heating, the best place is where the unit best serves those purposes: to enhance the sitting area of the master bedroom, to heat an office or guest room at the far end of the forced-air system’s duct run, or for holiday ambiance in the lesser-used living room.

And don’t forget the backyard: About 3 million outdoor fireplaces are installed every year, according to the Hearth Patio & Barbeque Association, as part of an overall trend toward more extensive outdoor living spaces. Expect to pay about the same for an outdoor unit, installed, as you would a comparable indoor fireplace, though don’t expect the outside unit to be an efficient heating source; rather, more so for ambiance.

5. Is a fireplace energy-efficient?

It’s true that a traditional, wood-burning fireplace in a big, open room--while romantic and impressive to guests--is an energy hog by continually sucking conditioned indoor air for combustion and losing most of its heat up the chimney. But sealed units (including those that burn wood) have the mechanics, controls, and venting systems to use outdoor air for combustion, reduce thermal loss, and effectively supplement the home’s primary heating system. A fireplace used for “zoned” or small-area space heating can lessen the energy demand on the furnace and reduce utility bills by allowing you to turn down your thermostat when the fire is going.

Theoretically, a series of well-placed and right-sized fireplaces might completely replace an existing home heating system. “A direct-vent gas fireplace is much more efficient as a per-room space-heating option than a traditional central forced-air system (using a furnace),” says Steve Frederickson, a fireplace installation expert and lecturer for Hearth, Patio & Barbecue Education Foundation. “It’s very wasteful keeping your whole house at 70 degrees all the time. If everyone used one of these fireplaces to heat just the rooms they use, when they use them, it would cut the residential heating load by 20%-25%

By: Matt Dornic

Published: November 9, 2011

Candidates be warned: Voters may make housing the make-or-break issue of the 2012 presidential election.

Without a widely supported federal plan to address the nation’s housing crisis, U.S. home owners, builders, and the hundreds of thousands of Americans employed in real estate-reliant industries should keep a close eye on GOP hopefuls and President Obama as the 2012 election cycle moves into full swing. Consistently ranked among top concerns for voters, housing may just be the issue to make or break a candidate’s White House run.

With less than a year remaining before Americans elect the nation’s next president, the housing slump has become a hot source of political ammunition between opponents. But not one has unveiled a real plan to address the ailing market. This could be for one of two reasons: Either prospective Republican nominees have failed to develop their housing platform or because, like Mitt Romney, they don’t intend to intervene.

Either way, housing-related criticism is being lobbed not just at the Obama administration and its imperfect programs, but also at the GOP candidates.

Case in point is a new ad campaign, created by the Democratic National Committee and targeting frontrunner Mitt Romney. Using audio of the former governor saying, "Don’t try and stop the foreclosure process — let it run its course and hit the bottom,” the commercial highlights one piece of a quote from an interview Romney gave to the Las Vegas Review-Journal’s editorial board last month.

Although some might argue that Romney’s quote was taken out of context, his “Believe in America Plan for Jobs and Economic Growth” barely touches on housing and instead focuses on tax cuts, less business regulation, and new energy initiatives.

But as foreclosures continue to plague the nation and with approximately 23% of mortgage-holding home owners underwater (as of second quarter 2011), surely some of the presidential hopefuls are addressing the housing sector, right? Here’s what we know about the candidates:

AP reports that Gov. Rick Perry’s fix for housing is to emphasize job creation. A spokesman for the governor said the “immediate remedy for housing is to get America working again. Creating jobs will address the housing concerns that are impacting communities throughout America."

Like Romney, it seems that Herman Cain’s answer is passive. "We need to get government out of the way," he said at last month’s debate in Las Vegas.

So far the most thoughtful position came from Newt Gingrich. The former Speaker of the House told Fox News’ Greta Van Susteren that small banks and removal of needless regulations may be the answer to the mortgage crisis.

”You have to repeal the Dodd-Frank bill because ... it dramatically regulates the banks,” Gingrich said. “It sends a signal to the regulators to tell them not to make the loans, not to roll over the money — and in effect, it encourages foreclosures and encourages the bank actually seizing the property."

"The minute you do that — literally, the minute you do that — it’s going to be easier for people to work their way out. You’ll have a dramatic decline in foreclosures,” he added.

Rep. Michele Bachmann has contributed virtually no plan to address the issue. Her strategy has been one of deflection, saying only that “[the White House] has failed you on this issue of housing and foreclosures. I will not fail you on this issue,” during the same debate.

But now, less than a year from the 2012 elections, a passive or low-profile approach to housing woes won’t sit well with voters. Candidate positions on housing will be important considerations to nearly seven of 10 Americans (69.6%) in the 2012 presidential and congressional elections, according to a national survey on housing from Move, Inc.

Look for housing to take center stage as the race for presidency really heats up in the next few months. And don’t be surprised if the first candidate to the finish line is the one who takes housing head on.

How important are housing issues for you in the 2012 presidential election?

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By: Curtis Lee
The Murphy-Lee Team
Prudential Zack Shore Properties

             If William Shakespeare financed a home today he'd probably ask on the subject of mortgage points: "To pay or not to pay? That is the question."

            Homebuyers direct the same question to their real estate agents. Here are some perspectives:

            In its simplest definition, a point is an additional loan fee that is paid to the lender in exchange for a lower interest rate. It's called "buying down," and it allows you to reduce your rate for the life of the loan.

            Let's say you secured a mortgage loan for $500,000 without points, at 4.6% on a 30-year mortgage, your payment would be approximately $2,560 a month. If you paid two points ($10,000), the interest rate in this example would go down to 4.1% and the monthly payment would decrease to around $2,415, a savings of $145 a month.

            In this scenario, it would take you about eight years to recoup the money you paid up front, so if you are planning on staying in your home a while, this will save you money in the long-run.

Home buyers must answer some key questions to determine if paying points is a wise decision. Specifically:

•·         How long will you keep the home?
•·         Do you have extra money to pay points?
•·         Could that money be better used for something else?

Money managers may suggest that a smarter option is to invest that $10,000 because you could do much better than your $140 savings, but you have to weigh the variables.

            "Paying points depends on your career, your interests and all the things that predict your future," said financial advisor Thomas Watkins of Total Mortgage Services in Milford, Conn. "Points are paid up front while your savings will be spread out into the future. Therefore, you get more benefit if you own your home longer, or if you don't refinance for a long time."

            The rule of thumb when it comes to points is simple: If you plan to stay in the house for less than three years, do not pay points. If you plan to stay in the house for more than five years, pay 1 to 2 points. If you'll be in the house for three to five years, paying points doesn't make a significant difference.

            Another important aspect to consider: Since points are interest-payment related, they are fully deductible on your taxes in the year that you close. See your tax advisor for details.

            Mortgage points can add up to valuable savings over the course of your loan, but the future isn't always predictable. Even if you "plan" on staying in your home for 20 years, changes in your career or family life could alter the plan.

By Curtis Lee
"The Murphy-Lee Team"
Prudential Zack Shore Properties 

            With April 15 rapidly approaching many are scrambling to complete their taxes. For those who have recently bought or sold a home, there are a number of tax deductions that that may be available to them.

            Real estate broker's commissions, title insurance, legal fees, advertising costs, administrative costs, and inspection fees are all considered selling costs and may be used to reduce one's taxable capital gain by the amount of the selling costs. That could result in a big savings depending on the final sale price.

            Interest that is paid on a mortgage is also tax-deductible, within limits. A married couple filing jointly can deduct all their interest payments on a maximum of $1 million in mortgage debt secured by a first or second home.

            Buyers may also be able to deduct some of the interest they paid on a home equity loan or similar line of credit.

            One deduction that many buyers often overlook is points. Points or origination fees on a home loan that were paid during the purchase of a home are generally tax-deductible in full for the year in which they were paid.

            Refinanced mortgage points are also deductible but only over the life of the loan - not all at once. Homeowners who refinance can immediately write off the balance of the old points and begin to amortize the new.

            If your lender required private mortgage insurance, the PMI premiums are tax-deductible for mortgages taken out from 2007 through 2011.

            Making improvements to property prior to the sale or once one moves in might qualify for an interest deduction on your home-improvement loan. Qualifying capital improvements are those that increase your home's value, prolong its life, or adapt it to new uses, such as adding a porch or installing energy-efficient windows.

            Many times during a sale, the seller will send the local tax collector's office a check for real estate taxes prior to the closing. In many circumstances, however, the buyer will pay a pro-rated portion of the taxes for the year at closing. This tax deduction also gets overlooked.

            For those working from their new home: If a room is used exclusively for business purposes, they may be able to deduct home costs related to that portion, such as a percentage of your insurance and repair costs, and depreciation.

            In some instances, if you have moved because of a new job, moving costs may be deducted. These can include travel or transportation costs, expenses for lodging, and fees for storing your household goods.

            Every year the tax laws change and certain tax deductions become available while others phase out. If you have recently bought or sold a home, it's probably a good idea to seek out a professional tax consultant to do your taxes as missing deductions that you can legally claim can add up to quite a bit of money.

By Curtis Lee
"The Murphy-Lee Team"
Prudential Zack Shore Properties

 When people enter your home they usually look down before up, so that first step is vital for attracting a homebuyer and making a great first impression. This is one reason why more people are installing hardwood floors in their homes.  

            Hardwood flooring enhances the look of any room and can create a classic ambiance that will beautify the interior design of your home. Residential real estate agents agree that homes with wood floors hold their value better, sell faster and fetch higher prices.

            Last year, 99 percent of real estate agents responding to a national survey conducted by the National Wood Flooring Association agreed that homes with hardwood floors are easier to sell. The survey also found that 82 percent believe that homes with hardwood floors sell faster and 90 percent said they would sell for more money.

            The American Hardwood Information Center adds that restoring hardwood flooring in the home is one of the best long-term investments to be made.

            "Hardwood floors are environmentally friendly, forever fashionable, and will last for generations," said Pembroke Jacobs, president of the Hardwood Manufacturers Association. "Plus, with an expected life span of up to 100 years for certain premium hardwood flooring, you can be assured that that the hardwood really is a one-time investment with a very long-term payoff."

            Real estate agents also agree that carpeting does not impress potential buyers, but hardwood floors are always a draw. Engineered wood floors impart warmth, depth and richness to a home's decor that cannot be matched by carpeting, tile or vinyl flooring.
            Despite the existence of modern architectural trends in flooring, hardwood can still compete with floor tiles and other artificial materials. It comes in a variety of colors and grains; light, medium, or dark shades; and a variety of sizes, styles, finishes and species.

            Maple, mahogany and oak are the most popular woods, but some homeowners are investing in exotics such as Brazilian cherry and purpleheart.

            The Environmental Protection Agency has said that indoor air quality is one of the top health threats and wood floors can help contribute to a healthy living environment. In fact, a recent EPA study found that pesticides used in gardens and homes accumulate on floors and other surfaces in the home, but that wood floors greatly reduce the accumulation of such toxins. Hardwood floors also do not trap or harbor dust mites or molds.

            Though wood floors will probably need to be refinished at some point, when properly taken care of they are much easier to maintain than other floor surfaces.

            The NWFA recommends regular sweeping of hardwood floors with a soft-bristle broom or dust mop to remove surface dirt and debris. If your floor contains beveled edges, it recommends using a vacuum with a soft bristle brush attachment to remove dirt and debris from between the floorboards.

            Having hardwood floors could be the difference between selling your home or watching a potential buyer walk out the door on a less-appealing type of flooring.

Looking for a waterfront home in Manahawkin, NJ? Confused by the wide range of prices?

Being a waterfront community boating is the passion of most homeowners in Beach Haven West.
Location to the bay is one of the largest determination of a home's value.
The better the location the higher the price, unless you wish to compromise on quality.
Bucchino builds quality homes, in great locations, at great prices.

Please visit these website to see some of our great homes that are waiting to be
your Jerseyshore Dream Home.

http://4maryjeannelane.epropertysites.com/             http://walterblvd.epropertysites.com/

Call The Murphy-Lee Team today for more information 1-800-594-3315.