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Articles Archive for April 2006

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[9 Apr 2006 | No Comment | 313 views]

Before You Do Anything Else
The first thing you should do is make sure your credit is in order. Request a free credit report from each of the credit bureaus and check the reports for accuracy. If you find mistakes on these credit reports you will need to dispute the errors.
You can improve your credit score by paying down the balances on your credit cards and closing the accounts. If you have credit cards that you don’t need close them.
Make sure you are paying your bills on time and have at least six months of on time payments. Mortgage lenders look at your repayment history as part of determining how much of a risk you are. Paying your credit card balances down and making the payments on time is a simple step you can take to improve your credit score.
Another thing you can do to improve your situation prior to refinancing …

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[9 Apr 2006 | No Comment | 305 views]

An interest only mortgage is one in which you make only interest payments for a period of time. A third of all new mortgages are interest only mortgages.
Contrast this to traditional mortgage that pays back the mortgage balance you took out to purchase your home. Many traditional mortgages are “amortized” over 30 years; that is, the amount you pay every month pays both interest and helps reduce the balance of the loan; so at the end of 30 years the loan is completely paid off.
=== Why are Interest Only Mortgages Attractive? ===
Interest only mortgages allow you can buy a larger, more expensive home in a better neighborhood.
Consider a traditional $250,000 mortgage for 30 years at 6.35% interest. The principal and interest payment is $1,555.59. But, the interest only mortgage payment is only $1,322.92–a monthly savings of $232.67. This makes homes more affordable.
And, for nearly the same traditional monthly payment (of …

World »

[8 Apr 2006 | No Comment | 292 views]

An interest only mortgage is one in which you make only interest payments for a period of time. A third of all new mortgages are interest only mortgages.
Contrast this to traditional mortgage that pays back the mortgage balance you took out to purchase your home. Many traditional mortgages are “amortized” over 30 years; that is, the amount you pay every month pays both interest and helps reduce the balance of the loan; so at the end of 30 years the loan is completely paid off.
=== Why are Interest Only Mortgages Attractive? ===
Interest only mortgages allow you can buy a larger, more expensive home in a better neighborhood.
Consider a traditional $250,000 mortgage for 30 years at 6.35% interest. The principal and interest payment is $1,555.59. But, the interest only mortgage payment is only $1,322.92–a monthly savings of $232.67. This makes homes more affordable.
And, for nearly the same traditional monthly payment (of …

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[8 Apr 2006 | No Comment | 244 views]

When You drive up to your house, maybe on the way home from work, or the gym, do you always approach from the same direction? Well, stop it. My point is, and bear with me because I do have one, how does your home present itself from all directions to a potential buyer? By driving up from the other direction, you may see your trash cans or some other visually displeasing feature that might be easily fixed, and improve the chances of your homes first impression being a good one for everybody. It’s a variation of an old Realtor trick. When approaching a home, we try to take the most scenic route. Is it dishonest? Not at all. It is our job to show the home in the best possible light.
Do you ever walk up to your front door? I rarely do. I drive up, park my car and walk …

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[8 Apr 2006 | No Comment | 337 views]

California Land Financing Budget (Example):
Land Purchase Price $300,000 Land Purchase Price
Soft Cost of Construction $ 40,000 Plans and Permits
Hard Cost of Construction $350,000 Construction Costs
Closing Costs $ 22,000 Fees, Title, and Escrow.
5% Misc. Reserve $ 17,500 5% of Construction Costs
Loan Interest Reserve $ 35,000 Interest On Amount Drawn
Total Building Cost $764,500
Appraised Value $800,000 Estimated Value of Land with Building Completed
Down Payment $191,125 25% of $764,500
Benefits of California Land Lenders
Loan officers dealing with California land should be able to assist you with the following information:
Assessment of the estimated yearly taxes, insurances, and HOA fees.
Approximate interest rate for the loan.
Down payment required.
Interpretation of your personal financial statements, credit scores, and income-to-debt ratios to conclude your eligibility.
Utilities Lead to the Path of Finance
One important thing to consider as you look to buy California land is utilities. When construction developers go into the construction stage to build new homes in Southern California then roads …

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[7 Apr 2006 | No Comment | 305 views]

Experts are looking closing at the real estate market in Salt Lake City. Population trends for the area are indicating a strong future. The Salt Lake City metropolitan area has a total estimated population of 1.2 million as of 2003. Salt Lake City alone has a population of 181,743. It’s the central part of the Wasatch Front which in total contains 1.7 million. The Wasatch Front is roughly 80 miles long with Ogden approximately 40 miles north of the Salt Lake Valley and Provo approximately 40 miles south of the Salt Lake Valley. For a state boasting a total population of 2.5 million the Wasatch Front is home for a significant proportion of the population. The Salt Lake City real estate market is strong due to the areas highly favored location.
Utah’s population growth of 29.6% more than doubled that of the nation (13.2%). Utah’s growth is attributed to natural increase …

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[7 Apr 2006 | No Comment | 315 views]

A mortgage is an interest in land created by a contract, not a loan. More specifically, a mortgage is a type of security for a debt. Although almost all mortgage agreements contain a promise to repay a debt, a mortgage is not a debt by and in itself. More importantly, a mortgage is a transfer of a legal or equitable interest in land, on the condition sine qua non that the interest will be returned when the terms of the mortgage contract are performed. This right of the borrower to repay the lender once the terms of the mortgage contract are fully satisfied is known, at law, as equity of redemption.
Mortgage Law originated in the English feudal system in approximately the 12th century A.D. In the early part of the English feudal period, the legal effect of a mortgage was to convey to the lender both the title of an …

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[7 Apr 2006 | No Comment | 352 views]

Many fortunes have been made investing in property in Whistler, BC, which now has the most expensive real estate in Canada, and some of the more expensive in the whole of North America (one not particularly large home is on the market for $20m). But is this game over, and should the canny investor be long or short on Whistler property in their portfolio? And if you are thinking of investing in Whistler property, what types of property offer the best bet both for current yields and for capital appreciation?
In the past, the smart money has invested in off-plan condos and townhomes. These developments have offered investors the chance to buy a property before the ground has even been broken with a small deposit, with further payments due as construction has proceeded. Time and again, these properties have been ‘flipped’ before further payments fell due for substantial profits. If you …

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[7 Apr 2006 | No Comment | 343 views]

If you’ve ever played the game of monopoly, you’ve had that great feeling of snatching up Park Place and Broadway at least once or twice, then waiting patiently to build hotels everywhere and put everyone else out of the game. Those of you, who like that feeling, may want to study real estate. Similar to monopoly, real estate professionals are masters of buying and building property all over the world. These professionals know how to make investments work for them, and once you take some real estate classes – you will as well.
If you’re ready to put value on property, real estate is where you need to be. You’ll also be closing deals, which can be very profitable. To get into real estate classes and succeed in real estate, you’ll need to be a persuasive team player who is really good with jumbling numbers. You’ll also need to be good …

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[7 Apr 2006 | No Comment | 293 views]

Affordable housing today in most urban real estate markets equates to properties where the homebuyer is part of a homeowners association or HOA. Condominiums, town home’s and single family homes in planned communities make up the majority of consumers who benefit from the association providing some of the maintenance and management of their property or common elements. Mark Nash author of 1001 Tips for Buying and Selling a Home shares the ins and outs of being a member of a homeowners association.
-The function of most HOA’s is to manage the common elements (area’s of the property that all owner’s use and enjoy) of the property. The common elements can consist of: the grounds, exterior of your home and in some buildings the mechanical systems, hallways, elevators, stairwells, swimming pools, garage etc. Most HOA’s also are responsible for the financial management of the association and collecting assessments from all property owners …