30-Year Fixed Mortgage Rate Hits Record Low
Mortgage rates posted mixed results this week, but the benchmark conforming 30-year fixed mortgage rates fell to a record low of 4.41%, according to Bankrate.com. The average 30-year fixed mortgage has an average of 0.43 discount and origination points. The previous record low of 4.42% was set in October and November of 2010.
The average 15-year fixed mortgage increased to 3.63% while the larger jumbo 30-year fixed rate bounced to 4.94%. Adjustable-rate mortgages were mostly lower, with the average 5-year ARM dropping to 3.12% and the 7-year ARM sinking to 3.27%. Both are record lows.
Prevailing economic concerns have kept mortgage rates at historically low levels. The average 30-year fixed mortgage rate has been below 5% in all but 11 weeks during the past year, and never as low as this week. A widely anticipated speech by Fed Chairman Ben Bernanke and a full slate of economic data in the next 10 days will steer perceptions about the economy as well as the direction of mortgage rates.
The last time mortgage rates were above 6% was Nov. 2008. At the time, the average 30-year fixed rate was 6.33%, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.41%, the monthly payment for the same size loan would be $1,002.70, a difference of $239 per month for anyone refinancing now.
Source: Bankrate, Inc.
Pending Home Sales Slip in July but Up Strongly From One Year Ago
Washington, DC, August 29, 2011
Pending home sales declined in July but remain well above year-ago levels, according to the National Association of Realtors®. All regions show monthly declines except for the West, which continues to show the highest level of sales contract activity.
The Pending Home Sales Index,* a forward-looking indicator based on contract signings, slipped 1.3 percent to 89.7 in July from 90.9 in June but is 14.4 percent above the 78.4 index in July 2010. The data reflects contracts but not closings.
Lawrence Yun, NAR chief economist, said sales activity is underperforming. "The market can easily move into a healthy expansion if mortgage underwriting standards return to normalcy," he said. "We also need to be mindful that not all sales contracts are leading to closed existing-home sales. Other market frictions need to be addressed, such as assuring that proper comparables are used in appraisal valuations, and streamlining the short sales process."
"Looking at pending home sales over a longer span, contract activity over the past three months is fairly comparable to the first three months of the year, and well above the low seen in April," Yun said. "The underlying factors for improving sales are developing, such as rising rents, record high affordability conditions and investors buying real estate as a future inflation hedge. It is now a question of lending standards and consumers having the necessary confidence to enter the market."
The National Association of Realtors®, "The Voice for Real Estate," is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales; it coincides with a level that is historically healthy.
Prepping a Home for Sale: Simple Staging Tips for Inside and Out
By Barb Schwarz, Stagedhomes.com
Before you show your home to any potential buyer, you want to make sure the staging is perfect. Follow these general tips and your home will look better than the competition.
FOR THE INSIDE
•Clear all unnecessary objects from furniture throughout the house. Keep accessories and objects on the furniture restricted to groups of 1, 3, or 5 items. In general, a de-cluttered home helps the buyer mentally "move in" with their own things. Rearrange or remove some of the furniture in your home, if necessary. Many times home owners have too much furniture in a room. When it comes to selling your home, thin out overcrowded rooms to make the rooms appear larger.
•Clear all unnecessary objects from the kitchen countertops. If it hasn't been used for three months…put it away! Clear refrigerator fronts of messages, magnets, pictures, etc.
•In the bathroom, remove any unnecessary items from the countertops, tub, shower stall, and commode top. Keep only the most necessary cosmetics, brushes, perfumes, etc., in one small group on the counter. Coordinate towels in one or two colors only.
•Take down, reduce, or rearrange pictures and objects on walls. Patch and paint all walls, if necessary.
•Review the house interior, room by room, and…
1. Paint any room needing paint.
2. Clean carpet and draperies that need it.
3. Clean windows.
•Pack up and store. If you need room to store extra possessions, get a storage unit.
•Leave on certain lights during the day . During showings turn on ALL lights and lamps.
•Set a background tune. Play light FM music every day in the house, for all viewings.
FOR THE OUTSIDE
•Go around the perimeter of the house and move all garbage cans, discarded wood scraps, extra building materials, etc., to the garage or, if applicable, take them to the dump.
•Check gutters and roof for dry rot and moss. Make sure they are swept and cleaned.
•Examine all plants. Plants are like children…they grow so fast. Prune bushes and trees. Keep plants from blocking windows: "You can't sell a house if you can't see it!"
•Remove any dead plants, weed all planting areas, and put down fresh mulching material.
•Keep your lawn freshly cut, edged, and fertilized during the growing season.
•Clear patios or decks of all small items, such as little planters, flower pots, charcoal, barbeques, toys, etc.
•Check the condition of the paint on your home, especially the trim and the front door. The first impression, or "curb appeal," is very important.
IN GENERAL
Try to look at your house "through a buyer's eyes," as though you've never seen it before. This exercise will help you see what needs to be done. Any time and money invested on these items will usually bring you the return of more money and a quicker sale.
August 2011 Sales Statistics
This graph clearly shows that real estate values have continued to decline, with only a few months showing small increases. As values declined, the number of sales increased as indicated on the "# of sales" graph below.
The number of closed sales increased substantially to a record 3,706 closings. It is obvious that buyers are active in the Las Vegas market and are taking advantage of the falling prices.
The number of REO/Bank Owned properties continue to exceed other ownership type sales numbers. It is obvious the banks are pricing their properties aggressively putting pressure on other sellers to accept lower prices as well.
4 Don’ts When Selling a Home
By Melissa Dittmann Tracey, REALTOR Magazine
Kelly O'Ryan, an office manager for Coldwell Banker in Lexington, Mass., recently highlighted several tips of what home owners shouldn't do when trying to sell their home in an article at RISMedia. Here are a few don'ts that made it on their list, see if you agree!
1. Don't slack off on home maintenance. Houses in need of TLC often attract investors or property flippers, which are known for submitting low-ball offers. To attract offers and the highest bids, sellers should attend to any upkeep and maintenance issues before putting the house for sale.
2. Make sure the home isn't being overshadowed outside. Nothing kills curb appeal more than a home you're selling that you can't even see. Be sure to trim trees or bushes to ensure they aren't blocking any windows or the exterior of the home.
3. Remove wallpaper. Wallpaper and borders can be a nuisance to remove so you might want to take these personal decor touches down before you list the home. Neutralize the homes in subtle colors that will appeal to the most buyers and allow buyers to better visualize their personal decor moving in.
4. Don't keep an empty home empty. Buyers can struggle in picturing themselves moving in if a home is left empty. Vacant homes can feel cold and rooms can look smaller than they really are. That's why O'Ryan reminds us why builders spend thousands of dollars staging model homes. If your listing is vacant, consider staging it to bring in furniture and accessories to help define the various rooms functions.
Wednesday, October 5, 2011
Tuesday, September 27, 2011
The Brutal Facfs
Brutal facts are not always pretty or inviting, but they are reality. Initially brutal news may take you back and even make you feel beat up. But take heart, it is good for bad news to travel fast. You are better off to hear negative news first, before the information becomes filtered through other perspectives, or the facts fester and become worse.
Brutal facts that are not given attention move from an inflamed infection to relational and organizational gangrene. Inevitably there follows an amputation; someone or something has be severed. This extreme action could have been avoided if the brutal facts had been revealed, recognized and acted upon early. Brutal facts are our friends; so do not dismiss the messenger because the message is bad, he or she is just the delivery person.
The wise receiver of brutal facts will extract the “chaff and keep the wheat”.
A brutal fact may relate to your finances and/or your property situation. What is the reality of your cash situation? Take care of your " financial business" or it will take care of you by tumbling down around you.
So where can we find these brutal facts? Your trusted advidsor, Your spouse, parent or friend that has some "horse sense" is a good starting point. They have a vested interest in you, so normally their perception of the facts is fairly accurate. Listen with an ear to learn, but if you become defensive or argumentative they will eventually shut down. Because they care, is why they want you to be aware.
Why not change on your own terms rather than being forced to change on another’s? This is the essence of brutal facts—there are some things that need to change. You, the work culture, and your family are always in flux, so use this as an opportunity to move from mediocrity to excellence. Embrace the brutal facts, learn from them and become better.
Do you currently have concerns that need to seriously consider? Askl youself, "How do I need to change"? "What trusted advisor can assit with making the right" decision.
Brutal facts that are not given attention move from an inflamed infection to relational and organizational gangrene. Inevitably there follows an amputation; someone or something has be severed. This extreme action could have been avoided if the brutal facts had been revealed, recognized and acted upon early. Brutal facts are our friends; so do not dismiss the messenger because the message is bad, he or she is just the delivery person.
The wise receiver of brutal facts will extract the “chaff and keep the wheat”.
A brutal fact may relate to your finances and/or your property situation. What is the reality of your cash situation? Take care of your " financial business" or it will take care of you by tumbling down around you.
So where can we find these brutal facts? Your trusted advidsor, Your spouse, parent or friend that has some "horse sense" is a good starting point. They have a vested interest in you, so normally their perception of the facts is fairly accurate. Listen with an ear to learn, but if you become defensive or argumentative they will eventually shut down. Because they care, is why they want you to be aware.
Why not change on your own terms rather than being forced to change on another’s? This is the essence of brutal facts—there are some things that need to change. You, the work culture, and your family are always in flux, so use this as an opportunity to move from mediocrity to excellence. Embrace the brutal facts, learn from them and become better.
Do you currently have concerns that need to seriously consider? Askl youself, "How do I need to change"? "What trusted advisor can assit with making the right" decision.
Wednesday, August 24, 2011
Federal Sales Tax on Your HOME!
LETS VOTE THEM ALL OUT IN 2012! WILL YOU SELL YOUR HOUSE after 2012?
Will you ever sell your house after 2012?
Call your Democratic/Republic Senator's Office to confirm this hidden fact about the ObamaCare regulation.
Did you know that if you sell your house after 2012 you will pay a 3.8% sales tax on it? That's $3,800 on a $100,000 home, plus all the other items.
When did this happen?
It's in the health care bill. Just thought you should know.
SALES TAX GOES INTO EFFECT 2013 (Part of HC Bill).
Why 2013?
Could it be that it is coming to light AFTER the 2012 elections?
REAL ESTATE SALES TAX.
So, this is "change you can believe in"?
Under the new health care bill all real estate transactions will be subject to a 3.8%Sales Tax. The bulk of these new taxes don't kick in until 2013 If you sell your $400,000 home, there will be a $15,200 tax.
This bill is set to screw the retiring generation who often downsize their homes.
Does this information make your November and 2012 vote more important?
Oh, you weren't aware this was in the ObamaCare bill? Guess what, you aren't alone.
There are more than a few members of Congress that aren't aware of it either
http://www.gop.gov/blog/10/04/08/obamacare-flatlines-obamacare-taxes-home
Will you ever sell your house after 2012?
Call your Democratic/Republic Senator's Office to confirm this hidden fact about the ObamaCare regulation.
Did you know that if you sell your house after 2012 you will pay a 3.8% sales tax on it? That's $3,800 on a $100,000 home, plus all the other items.
When did this happen?
It's in the health care bill. Just thought you should know.
SALES TAX GOES INTO EFFECT 2013 (Part of HC Bill).
Why 2013?
Could it be that it is coming to light AFTER the 2012 elections?
REAL ESTATE SALES TAX.
So, this is "change you can believe in"?
Under the new health care bill all real estate transactions will be subject to a 3.8%Sales Tax. The bulk of these new taxes don't kick in until 2013 If you sell your $400,000 home, there will be a $15,200 tax.
This bill is set to screw the retiring generation who often downsize their homes.
Does this information make your November and 2012 vote more important?
Oh, you weren't aware this was in the ObamaCare bill? Guess what, you aren't alone.
There are more than a few members of Congress that aren't aware of it either
http://www.gop.gov/blog/10/04/08/obamacare-flatlines-obamacare-taxes-home
Wednesday, August 17, 2011
5 Questions to Ask Before Buying a home!!
In most parts of the country, the housing market is good (or great!) for buyers right now - interest rates are bizarrely low, lots of inventory means lots to choose from, and the cost of renting has increased in a lot of markets. But just because the market’s good doesn’t mean it’s the right time for everyone to buy.
The decision whether to buy a home is a very personal one; you need to carefully examine your own situation to determine whether it’s right for you.
So, what are the questions you need to answer in deciding whether you’re ready to buy? Here are some of the big ones:
1. Do I have enough money for a down payment?
And how much, exactly, is “enough?” Today’s minimum down payment requirements range from 3.5 percent on an FHA loan to 10 or even 20 percent for conventional loans. That means coming up with anywhere from $7,000 to $40,000 on a typical $200,000 house. While there are still programs that can give you a down payment assist (see last week’s post, 5 Insider Secrets for Coming Up With Cash for Down Payment), much of the heavy lifting here will need to come from you - in the form of saving up your hard earned cash. And keep in mind there are also closing costs you’ll probably have to pay in cash, which can run as high as 3-4% of your total purchase price.
Talk with a real estate pro and a mortgage broker in your areas to start wrapping your head around how much “cash to close” (i.e., down payment + closing costs) will run, approximately, on a local property that would meet your needs. Can your savings cover this? If not, where will you get the money - what’s your plan for coming up with it?
Putting down as much as you can a) makes you more attractive to lenders, so you might qualify you for better loan terms and b) gives you additional purchasing power, either decreasing your monthly mortgage payment or increasing your purchase price limit for a home.
2. Can I handle the not-so-glamorous aspects of homeownership?
If you can’t even fathom the prospect of having a home maintenance crisis without having a landlord to call to fix it, you might want to reconsider homeownership - or at the very least, buy a lower maintenance condo or townhome in great condition, and make sure you get a home warranty! As a home owner, after all, you essentially are your own landlord. Pipe bursts in the middle of the night? Guess who’ll be up fixing it or calling (and paying) the plumber? (Hint: you.)
There are also some less-than-glamorous bills you’ll have to deal with in your new role as a homeowner that you never laid eyes on as a renter: property taxes and hazard insurance, to name two. When you go from renter to owner, you also need to account for the cost of appliances and maintaining the property’s roof, windows, and landscaping, among other things.
3. How long do I intend to stay in the house?
If you think you might move out of the area next year, then you really shouldn’t be thinking about buying a house (unless of course, you want to play landlord and rent it out after you leave - a prospect which requires its own risk/rewards analysis). For your home purchase to pencil out as a good deal, financially, you’ll shouldn’t buy unless you’re comfortable staying in the house at least 5-7 years - even longer, if you’re buying a home in a foreclosure hot spot or an area with a sluggish job market.. This gives you some time to build up equity and make up for the costs of buying, selling and moving.
4. Are my job and finances stable?
Maybe you just went through a major career change and are in the process of working your way back up from the top. Or maybe you work in a field that has been hit really hard by layoffs and cutbacks. The worst case scenario is to find yourself in a spot with mortgage payment you have no way to make, when you could have avoided that by seeing the writing on the wall. If you feel like there’s a real chance you could lose your job or income tomorrow, you may want to hold off on buying a house - that has the added bonus of giving you the geographic freedom to move, if needed, to get a new job.
Is there really such a thing as 100 percent job security in today’s economy? Probably not. But the best practice is to be confident that your finances could handle a temporary loss of income and still make your mortgage payments, before you buy. One way to do this is to have enough money in the bank to cover 4-6 months’ worth of living expenses, calculating them to include your mortgage payment - before you deem yourself ready to buy. That way, even if you lose your job with no warning at all, you’ll at least have a reasonable window of time to find a new one without digging yourself into a hole - or worse, losing your home altogether.
5. What are my real reasons for buying?
Buying a home is a long-term commitment that will have massive impacts on your lifestyle, your family and your finances. In other words, don’t do it unless you’re really sure you want to and are ready for the lifestyle change - don’t let someone else talk you into it. Worthy reasons renters with homeowning readiness give for their decision to buy include some or all of the following:
•You want to build equity instead of paying a landlord. Fact is, if you get a fixed rate mortgage and make the payments for the full term of the loan, you'll eventually pay it off. That's not possible when you're renting.
•You want a place to call your own, where you can paint a wall purple, add a pottery spinning studio or build your dogs an obstacle course (oops - that's my reason for homeownership!), because it's your prerogative.
•You want the tax advantages of homeownership.
•You want a stable place you and your family can live for as long as you'd like.
Ask yourself these questions, and be honest with your answers. If you really want to buy, but your answers to these questions today don’t weigh in that direction, it doesn’t mean you’ll never own a home. It’s usually just a matter of strategically timing your purchase out a year or two when your savings, your career and your lifestyle are in alignment with the implications of ownership - consider working closely with a real estate broker and a mortgage professional to get an action plan in place and start working that plan.
http://www.trulia.com/blog/taranelson/2011/08/5_questions_to_ask_yourself_before_buying_a_home?ecampaign=cnews201108C&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2011%2F08%2F5_questions_to_ask_yourself_before_buying_a_home
The decision whether to buy a home is a very personal one; you need to carefully examine your own situation to determine whether it’s right for you.
So, what are the questions you need to answer in deciding whether you’re ready to buy? Here are some of the big ones:
1. Do I have enough money for a down payment?
And how much, exactly, is “enough?” Today’s minimum down payment requirements range from 3.5 percent on an FHA loan to 10 or even 20 percent for conventional loans. That means coming up with anywhere from $7,000 to $40,000 on a typical $200,000 house. While there are still programs that can give you a down payment assist (see last week’s post, 5 Insider Secrets for Coming Up With Cash for Down Payment), much of the heavy lifting here will need to come from you - in the form of saving up your hard earned cash. And keep in mind there are also closing costs you’ll probably have to pay in cash, which can run as high as 3-4% of your total purchase price.
Talk with a real estate pro and a mortgage broker in your areas to start wrapping your head around how much “cash to close” (i.e., down payment + closing costs) will run, approximately, on a local property that would meet your needs. Can your savings cover this? If not, where will you get the money - what’s your plan for coming up with it?
Putting down as much as you can a) makes you more attractive to lenders, so you might qualify you for better loan terms and b) gives you additional purchasing power, either decreasing your monthly mortgage payment or increasing your purchase price limit for a home.
2. Can I handle the not-so-glamorous aspects of homeownership?
If you can’t even fathom the prospect of having a home maintenance crisis without having a landlord to call to fix it, you might want to reconsider homeownership - or at the very least, buy a lower maintenance condo or townhome in great condition, and make sure you get a home warranty! As a home owner, after all, you essentially are your own landlord. Pipe bursts in the middle of the night? Guess who’ll be up fixing it or calling (and paying) the plumber? (Hint: you.)
There are also some less-than-glamorous bills you’ll have to deal with in your new role as a homeowner that you never laid eyes on as a renter: property taxes and hazard insurance, to name two. When you go from renter to owner, you also need to account for the cost of appliances and maintaining the property’s roof, windows, and landscaping, among other things.
3. How long do I intend to stay in the house?
If you think you might move out of the area next year, then you really shouldn’t be thinking about buying a house (unless of course, you want to play landlord and rent it out after you leave - a prospect which requires its own risk/rewards analysis). For your home purchase to pencil out as a good deal, financially, you’ll shouldn’t buy unless you’re comfortable staying in the house at least 5-7 years - even longer, if you’re buying a home in a foreclosure hot spot or an area with a sluggish job market.. This gives you some time to build up equity and make up for the costs of buying, selling and moving.
4. Are my job and finances stable?
Maybe you just went through a major career change and are in the process of working your way back up from the top. Or maybe you work in a field that has been hit really hard by layoffs and cutbacks. The worst case scenario is to find yourself in a spot with mortgage payment you have no way to make, when you could have avoided that by seeing the writing on the wall. If you feel like there’s a real chance you could lose your job or income tomorrow, you may want to hold off on buying a house - that has the added bonus of giving you the geographic freedom to move, if needed, to get a new job.
Is there really such a thing as 100 percent job security in today’s economy? Probably not. But the best practice is to be confident that your finances could handle a temporary loss of income and still make your mortgage payments, before you buy. One way to do this is to have enough money in the bank to cover 4-6 months’ worth of living expenses, calculating them to include your mortgage payment - before you deem yourself ready to buy. That way, even if you lose your job with no warning at all, you’ll at least have a reasonable window of time to find a new one without digging yourself into a hole - or worse, losing your home altogether.
5. What are my real reasons for buying?
Buying a home is a long-term commitment that will have massive impacts on your lifestyle, your family and your finances. In other words, don’t do it unless you’re really sure you want to and are ready for the lifestyle change - don’t let someone else talk you into it. Worthy reasons renters with homeowning readiness give for their decision to buy include some or all of the following:
•You want to build equity instead of paying a landlord. Fact is, if you get a fixed rate mortgage and make the payments for the full term of the loan, you'll eventually pay it off. That's not possible when you're renting.
•You want a place to call your own, where you can paint a wall purple, add a pottery spinning studio or build your dogs an obstacle course (oops - that's my reason for homeownership!), because it's your prerogative.
•You want the tax advantages of homeownership.
•You want a stable place you and your family can live for as long as you'd like.
Ask yourself these questions, and be honest with your answers. If you really want to buy, but your answers to these questions today don’t weigh in that direction, it doesn’t mean you’ll never own a home. It’s usually just a matter of strategically timing your purchase out a year or two when your savings, your career and your lifestyle are in alignment with the implications of ownership - consider working closely with a real estate broker and a mortgage professional to get an action plan in place and start working that plan.
http://www.trulia.com/blog/taranelson/2011/08/5_questions_to_ask_yourself_before_buying_a_home?ecampaign=cnews201108C&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2011%2F08%2F5_questions_to_ask_yourself_before_buying_a_home
Friday, August 12, 2011
CASH DOWN PAYMENT ASSISTANCE
Most home buyers’ biggest hurdle is coming up with the cash for a sensible down payment. Gone are the days of zero-down loans, so if that was your plan, you’re going to need a new one! Coming up with a down payment for a home is a challenge because it’s not chump change we're talking about, here. The down payment on a $200,000 house, for example, will run you anywhere from $7,000 (on an FHA loan) to $40,000!
That might seem like an insurmountable amount of coin to come up with, but it’s actually more doable than you might think. Some buyers will simply save up their own cash, even if it takes many, many moons. The good news is that if you still need some help to boost your down-payment savings, there are resources you can harness to power your home-buying pursuit:
1.The FHA Bridal Registry. Yes - you read that right! The FHA Bridal Registry Program enables wanna-be home buyers to apply their families’ wedding gifts toward their down payments. And although it’s named a “bridal registry” program, you don’t have to be a prenuptial couple to use it. You could also use this program to collect gifts for graduation, the arrival of a baby or some other major life event in which people want to give you gifts. The FHA Bridal Registry works like a traditional registry, but is more flexible. The registrants visit their choice of FHA mortgage lenders and set up what essentially is a custodial savings account for the sole purpose of funding their down payment. The couple’s (or individual’s) family and friends can either deposit funds directly into the account or give the cash or check to the couple or individual, who then deposits it into the account. The account’s flexibility also goes beyond that of traditional down payment gift rules that are applicable to FHA loans, which are detailed below in insider secret #2. With the FHA Bridal Registry Program, the only gift documentation required is “lender and borrower certification of the funds.”
2.Family gifts. Most lenders will allow home buyers to apply gift money from family members toward their down payment - within guidelines, that is. First, the lender will require a letter from the giver verifying that it in fact is a gift and not a loan. (They generally frown upon it being a loan because it would add to the buyer’s debt and change their debt-to-income ratio.) And second, the person giving you the money must be a relative. The reasoning here is that a friend will most likely expect you to repay the money, whereas a relative won’t. FHA loans will allow the gift to make up any portion or all of the buyer’s down payment, many conventional (non-FHA) loan programs will restrict the proportion of a buyer’s down payment that can come from gift money. The lender may also have specific ways they want to see the money go into and out of your accounts. Before you accept a gift toward your down payment, be sure to check with your mortgage broker or loan rep to be sure that you’re dotting all the right i's and crossing all the right t's.
3.Your Employer. Some companies offer assistance programs to employees. Most are government, university, large company and financial industry employers. One example is safety workers: n some areas, safety workers like firefighters and police can have access to down payment grants from their employers if they buy properties in the city where they are on-call as first responders. Also, many large colleges and universities, very large companies and banks and lending institutions offer down payment help and have below-market-rate mortgages set up for faculty members and staffers. Check with your Human Resources department to see if any such program is available to you.
4.City/County/State Programs. Some states, counties and cities still offer programs that lend or give home buyers some assistance for down payments. These programs vary widely in scope - for instance, many target buyers with low and moderate incomes, while some seek to help the buyers of foreclosed or fixer-upper type homes. Some don’t have to repaid - meaning they are given as grants and are forgiven entirely if the buyer lives in the property for 30 years, but must be repaid if the buyer sells or rents the home out before the 30 years elapses. The programs pretty much all have some sort of homeowner education component that requires applicants to take personal finance and homeownership preparedness classes before they can receive funds. To learn more, visit your city, county and state websites to learn about programs that might be able to help you.
5.Your Retirement Funds. Many financial advisors would advise against this, but if you have a 401K or Roth IRA account and some years to go before retirement, you might be able to tap into it or even borrow against your own funds for your down payment. Currently, you can take up to $10,000 out of your Traditional IRA with no penalty to put toward the purchase of your first home, but you will be taxed. You can take as much as you want out of your Roth IRA contributions with no penalty or taxes, though, and as much as $10,000 from your earnings penalty-free for your down payment. The rules get a little tricky, here, so definitely check in with your tax and financial advisors. And while you can’t similarly draw from your 401K, many retirement and pension plans will allow you to borrow the money against your funds, then repay it to yourself – at interest. So the choice there comes down to paying your lender back with interest or paying yourself with interest. That choice should be you! But first, get some advice from your CPA or financial planner. This option might not make financial sense for your particular situation.
http://www.trulia.com/blog/taranelson/2011/08/5_insider_secrets_for_coming_up_with_cash_for_down_payment?ecampaign=cnews201108B&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2011%2F08%2F5_insider_secrets_for_coming_up_with_cash_for_down_payment
Tuesday, August 9, 2011
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