Should you pay points when financing?

Numerous closing costs come with any mortgage. There's a fee for an appraisal and a fee for a credit report... and the lender has its fees, too. And don't forget about the attorney fee, title insurance and escrow charges. Closing costs can vary from state to state and province to province, but you really don't have much choice of whether you want a survey or if title insurance is right for you. There will be a variety of services performed and records searched by different companies, and none of these come free of charge.

But there is one closing cost that you can control: discount points or, more simply, points.

A discount point reduces the interest rate on your mortgage. One point is equal to 1 percent of your loan amount, so on a $200,000 loan one point equals $2,000.

Why do some lenders charge points? In reality, all lenders pretty much have the same rates; it's just that sometimes a lender will advertise a rate with a point or a rate without a point. But the decision to pay a point is yours alone.

A point will typically reduce your interest rate by a quarter of a percent on a 30-year mortgage. If your lender offers a 6.5 percent rate with no points, then you may also get 6.25 percent with one point. So how do you decide?

It's simple. Just take the difference in monthly savings gained with the lower rate and divide that into the point. The result equals how many months it will take to "recover" the amount

you paid in points. Let's look at an example.

A 30-year fixed-rate mortgage of $200,000 at a 6.5 percent interest rate would mean a monthly principal and interest payment of $1,264.14. By paying an additional $2,000 in the

form of a point, your rate would drop to 6.25 percent and the resulting payment would drop to $1,231.43; saving you $32.71 each month. When you divide that $32.71 monthly savings into $2,000 you get 61.14, or about 61 months. Your recovery

period is slightly over five years. That's a little long in my opinion and I've never been a big fan of paying points. Instead, I'd encourage you to take that same amount and pay down your principal.

Remember: The quarter percent difference in interest rates when paying a point is an imprecise, general mortgage rule of thumb. Whichever rate you get, be sure to divide the savings into the points paid to see how long it will take to recoup the difference.

For questions about buying a home, call Ellie at 850-545-0814 or email ellie@ringtherivers.com.

Reprinted from Financing Solutions with David Reed. 

Another great addition to the Eastside of town!

I have to say that as an East side resident every time a new business opens up on the East side of town I get really excited about the new growth to the side of town in which I call home. Whether it's a Wal-Mart like the new, huge and beautiful one on Mahan, or Costco, or even a new restaurant, I get really excited to have a more convenient place to be able to grab food or necessities in a timely manner. So as I am driving through the Publix parking lot last night to quickly pick up a couple of last minute items for dinner I could not understand why the parking lot was so crowded and cars were lined up back to back.

I thought Hmmmm, maybe there is some new amazing movie that just came out at Block Buster that I obviously don't know about? Well, in checking out my favorite site last night Tallahassee.com I found the answer! Tijuana Flats restaurant grand opening was yesterday! A new Tex-Mex spot on the East Side of town. You can check out the article from Tallahassee.com written by Dave Hodges DEMOCRAT BUSINESS EDITOR by clicking on the link below. Can't wait to try it out!  

http://tallahassee.com/apps/pbcs.dll/article?AID=/20080701/BUSINESS/807010319/1003  

If you have questions about the Tallahassee area or would like to know what the various sides of town can offer you in the way of restaurants and businesses to help you decide where your next home should be give me a call!

You can reach me at 850-591-2599 or email me at julie@ringtherivers.com

Thanks guys! J

ulie Cox-Money, Rivers Team, Buyer Specialist   

Using collectables as down payment money

In the search for funds to close, there is an oft-overlooked source that could be right under your nose - or at least somewhere safely tucked away inside your closet.  How about that 1952 Mickey Mantle rookie baseball card? Sound silly? It's not. That baseball card has real value and can be readily sold to a collector.

But what if you did not want to part with your card or your prized PEZ collection? Could you access the equity in such items in order to buy a home? You bet you could. Be it an antique, a piece of artwork, car, collectable or any other asset.

The principle in such a transaction applies to any asset that can be independently appraised by a third party. To make this work, you need to be careful in both documenting the value of the asset as well as documenting the funds received should you sell it. For example, let's say you have a first edition autographed copy of In Cold Blood by Truman Capote that's worth $2,000. You would first have the book appraised by an expert. Keeping a copy of the appraisal, you could then sell the book and document the sale with a copy of the receipt and deposit the money into your bank account. Or, you could also borrow against the value of the book.

Lenders will allow for a secured loan to be counted as legitimate funds available for closing, as long as the terms on the loan are figured into your debt ratios. That way you won't have to part with your beloved 1952 Mickey Mantle rookie baseball card or your copy of the Capote book. You can borrow against these - as long as you can find a lender willing to give you the loan. Collectables such as baseball cards, while valuable, are much less commonly used as assets than automobiles. But they can be just as fruitful.

So, if the lender can independently obtain a legitimate value assessment of the asset that matches up with the appraisal, then you potentially have another tool to help you fund your home purchase.

If you have any questions about how to get into a new home, call Ellie at 850-545-0814 or ellie@ringtherivers.com.

Get Hooked up in Tallahassee; all about the connections for your new home, utilities, water, garbage and gas.

I have to say that lately I have been asked by many that are new to the Tallahassee area, how they go about hooking up their utilities, water, garbage, gas, etc.. and how to get these services taken care of. There has also been many questions as to if the utilities and water are together or separate and then questions about garbage and gas arise too. So, in my search of my favorite website, Tallahassee.com. I came across a great article "Getting Connected" from Tallahassee.com. This article is full of valuable information of not only how to get your utilities in your new home turned on, but where to go, info on paying your bill, garbage removal and recycling. Thanks again Tallahassee.com for another great and full of information article.

You can view this article by clicking on the link below

http://tallahassee.com/apps/pbcs.dll/article?AID=/20070901/LIVINGHERE/109170004

Thanks for reading the info and if you have any other questions about the Tallahassee area please don't hesitate to call me at 591-2599 or email me at julie@ringtherivers.com

Thanks for stopping by!!

Julie Cox-Money

Buyer Specialist

A recent survey and a rate increase could mean more competition for homes

Recent indication is that first time home buyers are getting tired of sitting on the sidelines. According to a recent online poll taken by the National Apartment Association, 17 percent of renters plan to make the jump to home ownership in the next year; 41 percent of the 2,041 respondents planned to be home owners within two years. Only 31 percent planned to still be paying rent five years from now.

Another factor that could very soon contribute to an increase in home buying could be rising mortgage costs. Fixed-rate mortgage rates rose to 6.32 percent, the highest it has been since October. After months of aggressively dropping interest rates, many lenders are worried that the Fed will be forced to raise rates back up. As interest rates rise, so do mortgage rates. According to a press release on freddiemac.com, Frank Nothaft, Freddie Mac vice president and chief economist said that, "Mortgage rates jumped this week after a number of Federal Reserve officials, most notably Chairman [Ben] Bernanke and Vice Chair [Donald] Kohn, expressed concern over a threat of inflation." We may very well be seeing the beginning of the end of the super-low mortgage and potential buyers may realize that with rising rates, now may be the time to jump in. Nothaft added, "Moreover, pending home sales for April unexpectedly rose by 6.3% and mortgage applications for home purchases ... were also up last week."

For more information about the real estate market, contact Ellie Stafford at 850-545-0814 or ellie@ringtherivers.com .

All about Tallahassee...great information for anyone that is planning on moving to the area.

Hey Guys!!

O.K. So I figured this week I would not only find a great article from my favorite Tallahassee Site, Tallahassee.com, but that I would find some good and beefy information to inform those that are planning on moving to the Tallahassee area!

I think that this article that I found hits right on the spot! The article " Through the looking glass: Tallahassee at a glance" by Andy Lindstrom addresses everything from population to restaurants to events to labor force, to income.....I could go on and on but you should definitely read it for your self.

 Even if you are local to Tallahassee and already think you know the area, I bet that after reading this article you will have not only learned something new, but will probably have picked up some very useful and interesting information!

You can read this article from Tallahassee.com by visiting the link below

http://tallahassee.com/apps/pbcs.dll/article?AID=/20070901/LIVINGHERE/109170005

Thanks for stopping by!

Julie Cox-Money, Buyer Specialist for the Rivers Team.

If you or someone that you know are planning on relocating to the Tallahassee area, give me a call! I would love to help you with your relocation and move to the Tallahassee area! You can reach me at 850-591-2599 or julie@ringtherivers.com

The best time to lock in your mortgage rate

"What do you think about rates ... should I lock in now or wait to see if they fall further?" Think I've been asked that a time or two over the past 18 years? You better believe it.  It's a good question-one that goes through every single buyer's head at some stage. 

A quoted interest rate is no good unless you've confirmed, in writing, that your loan is indeed "locked," or guaranteed for a designated period of time. You need to be proactive with your locked rate as well and don't assume that your loan officer already locked you in. In fact, your loan officer shouldn't lock in your rate without your specific instructions. If it was locked in and rates went down you'd be pretty mad, wouldn't you?

While neither real estate agents nor loan officers are in the business of predicting the future, it's still possible to make a prudent choice in the face of uncertainty. Would you rather lock in your rate and watch rates fall or not lock in your rate and see rates go up?

If you decided to lock and rates go down, you've secured the market rate that you were happy with. But if rates went up and you didn't lock, you'd be paying for that mistake for the rest of the loan.

There is an even worse possible scenario: After not locking in your rate, rates shoot up and you no longer qualify for the loan. So it's important to ask yourself:  "Which way would I rather be wrong?"

If you are comfortable with the rate you've been quoted, talk to your real estate agent about the possible consequences of waiting to lock it in.

For questions about our local market, please call Ellie Stafford at 850-545-0814 or email ellie@ringtherivers.com.

Add Value to Your Outdoor Area

Add Value to Your Outdoor Area

Do you have a back patio that is lacking luster?  Have you had people over on cool nights and everyone would rather stay inside?  Do you walk outside and think, "This space needs something"?

If you can relate to any of the above, this article is for you.

A back patio can really increase and extend the living area in your home.  If utilized, a back deck or patio can become an extra dining room, a late night lounge, or a reading area for lazy afternoons.

According to HGTV.com it can be really easy to add value to your outdoor areas.  One easy tip would be to add benches for extra seating. 

If you are on a budget see if your city has a raw furniture outlet.  I know here in Tallahassee we have a store called "WOOD YOU".  Wood You sells solid wood un-stained or painted furniture. This is a great option if you want to match the stain to your surroundings. 

If you are feeling adventurous, you could buy a wood working book and rent some tools.  Remember, take all safety precautions, and to follow the directions in the manual.  If using power tools is not your style, see if your local home improvement store will make the necessary cuts for your project.  Then you can go home and nail the puzzle together.

If you just need to bring the space together, try buying matching planters for your plants. A great place to find planters at a discount is at Tuesday Morning.  Here you can find the same planters as you would at Lowe's for a fraction of the price.  Another way to bring the space together is to use similar or complementary fabric in your seating area.  Even if you do not own a sewing mashing, stitching  together fabric can be very simple.  Go to your local craft store and ask an attendant for help.  They should be able to help you pick the right outdoor fabric and tips on sewing the pieces together.

If adding a deck or patio you have many options.  If you currently have a concrete slab that needs some sprucing up, decorative concrete can be a very affordable option.  Alternatively, you could go with more traditional materials and use brick or flagstone.  If adding a deck see what type of material would work the best in your environment.  If the deck is going to be mainly in the sun, you may need to regularly seal the wood.  If you are concerned about splitting or cracking look into composite decking materials. 

Another way to bring life to your back yard space is to add decorative lighting.  Something as easy as Christmas lights or wall sconces can really set the mood.  If you have a bug problem, citronella torches are a hip and easy way to combat the problem.  They are so functional; they provide light while at the same time saving your guests skin from annoying bug bites.

If you have any questions about adding value to your back yard, please feel free to contact me at sarah@ringtherivers.com.

Good Luck!

 www.fineliving.com

www.hgtv.com

Great Plans for Wakulla County

Ed Brimner, Wakulla County Commissioner has been holding meetings for the past several months to get the people excited about the project he has taken on. This will not only make the community of Wakulla County more beautiful but the residents property value increase. Please take a moment to read the plan he is working on.

Submitted by Shari Edington Buyer Specialist for The Rivers Team Keller Williams Town & Country Tallahassee, FL.   

Shari@ringtherivers.com

 Ed Brimner---I have an idea-almost a dream.  I want to see all Wakulla Citizens who live in a neighborhood to live in a neighborhood we can all be proud of.  This includes our historic subdivisions of Grieiners Addition, Magnolia Gardens, Wakulla Gardens, and Lake Ellen Estates.  These areas have been neglected due to cost for decades and now is the time to correct this wrong.  My ideas include:

•·        Hire a neighborhood planner to design new construction in an environmentally responsible manner and establish a TIF overlay (CRA).  The neighborhood citizens would be major factors in what is designed.

•o       Roads that encourage slow speeds.  (Driveways could act as ditch blocks rather than culverts that move water to the bottom of the hill as fast as possible.)

•o       Stormwater that holds water at the "top of the hill" rather than digging a huge hole with a fence around it at the "bottom of the hill" (think outside the "standard" engineer box)

•o       Walkability within neighborhoods (not necessarily, but maybe, sidewalks)

•o       Install "sky friendly" lights so walking at night is safe and enjoyable (more expensive but protect quality of night skies)

•o       Change building codes to encourage home designs and lot layout to enhance the quality of life in these areas (allow building closer to the road so parking can be in the back of the lot rather than in the front, homes that encourage neighbors to watch what is going on, zero lot lines, etc.)

•o       Commercial areas "planned" into area (wouldn't 2000 or more homes support a restaurant, Family Dollar, and convenience store?  Maybe more.)

•o       Small community parks and common playgrounds (could be joint use with shallow stormwater containment catchments)

•·        Include improvements to roads leading to Tallahassee in this plan (majority of homeowners will work in Tallahassee).  This would also be a superb first line for public transportation.

•o       Upgrades at Shadeville/Spring Creek intersection and make this a "no stop" intersection.

•o       Pave and upgrades Old Shell Point from Bloxham to Wakulla Springs Highway.

•o       Upgrade other infrastructure as needed to support these neighborhoods.

•o       Reduce LOS on Spring Creek Hwy and Wakulla Springs Road and other interior roads to prevent unplanned expansion of "new" subdivisions.

•o       Build turn lanes off of arterial roads into subdivision.

•o       This part of TIF would be enhancing the quality of life for all of Wakulla County, not just our historic neighborhoods.

Another Great Tallahassee Neighborhood!!

So I will admit I love to visit Tallahassee.com!! I think that it is one of the best sites to go to to catch up on our cities news and current events. If you have not visited this site before you should definitly take a look, tons of great information. Every time I visit this site I make sure to visit the Eastside chronicle to catch up with the happenings on the side of town in which I reside. I will say that I came across an article that made me proud to call this side of town home!

Avondale wins neighborhood honors again!!

So that is now 2007, 2006, 2004, and 2000. Good Job Avondale! I can personally say that I have been in this neighborhood before and it is absolutely beautiful! What a wonderfull place to reside on the East side of Tallahassee. Please read more about Avondale winning this great 4th time honor by clicking on the link below. Article written by Kent Wimmer at Tallahassee.Com

http://tallahassee.com/apps/pbcs.dll/article?AID=/20080528/ECHRONICLE02/805280318/1086/ECHRONICLE

For more information on Tallahassee's East Side please visit Tallahassee.com and read info from the Eastside Chronicle and if you would like to hear more about Tallahassee East Side Neighborhoods you can give me a call I would be glad to help!!

Julie Cox-Money 850-591-2599 or send me an email at julie@ringtherivers.com