Archive for September, 2010

Sep
17

REAL ESTATE DEAL OF THE MONTH

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If you have ever dreamed of owning in Downtown Phoenix... this is an incredible deal!

SHORT SALE: PENTHOUSE IN TAPESTRY ON CENTRAL- Located at 2302 North Central Avenue, Phoenix, AZ 85004

This top floor unit has a premium east view which overlooks Piestwa (Squaw) Peak, Papago Buttes, Supersitition Mountains and the city lights of the Biltmore Area.
It is a 2 bedroom, 2 bath unit with two decks, one on each floor with the 2nd floor deck the largest of the two. Granite countertops and 25 foot soaring ceilings add distinct elements to the unit. 
The condo comes with a two car gated garage and luxury amenities which include a heated salt water pool and spa, a 15 seat movie theatre, a large sauna, and clubhouse.
It is across the street from the Heard Museum, down the street from the Phoenix Art Museum, a light rail away from most entertainment with a price that cannot be beat.
This unit is in the ideal downtown location and is on the Encanto/ Central Avenue metro stop.
For more information, contact us at: 602.687.9933 or Info@MetroRealtyphx.com .

 

 

Now that you have decided to buy a home, it is time to look for financing, it is time to obtain a mortgage. 

A mortgage is a loan secured by a property/house and paid in installments over a set period of time. The mortgage secures your promise that the money borrowed will be repaid.For most of us, a mortgage is the largest and most serious financial obligation we ever make.

Freddie Mac states; there are many different types of mortgages, each with its own advantages and disadvantages, it is very important that you do your research.Remember that many people were impacted by predatory lenders and given mortgages that they could not sustain during the housing crisis of the last two years. Understanding these differences will enable you to choose the right mortgage for your financial situation and housing goals. Be an educated consumer!

For any other information on mortgages, log on to the Freddie Mac website.

Types of Mortgages

The two types of mortgages most commonly offered are fixed-rate and adjustable-rate mortgages.

1. Fixed-Rate Mortgages- Interest rates rise and fall over time. Back in the ’80’s the interest rate hovered around 19%, whereas a couple of years ago the interest rate was around 5%. A fixed rate mortgage locks you in to a permanant rate, there are no fluctuations. The mortgage term can be 15,20,30, or 40 years but the most common are the 15 and 30 year fixed mortgage.

  • Advantages: Stability: The interest rate never changes, even if the economy tanks. Your monthly payments will never change. If you are paying $1000 a month today, you will pay $1000 five years from now.
  • Disadvantages: Higher initial costs: The interest rates are usually higher than the initial rates of an adjustable mortgage.

2. Adjustable Rate Mortgages-The interest rates can change at certain points throughout the term of the loan. Most ARMs offer a fixed rate for a certain period of time (3,5,7,or 10 years). After that, the rate adjusts to match the interest rates that the financial markets are offering at the time.

  • Advantages: Lower initial costs: During the initial fixed term of an ARM, interest rates are usually lower than a fixed mortgage rates. Your payments are lower initially.
  • Disadvantages: Risk: ARMs expose you to risk. Initially, the rates are lower but after the initial phase is over and the rates rise, you’ll pay more.

Different ARMs adjust their interest rates in different ways. Always seek the advice of your financial adviser and your mortgage professional for any questions on mortgage.

3. Interest Only Mortgages

Certain ARMs allow you to pay interest only. With most ARMs, you pay the principal (the actual price) plus interest on the loan for a fixed period of time. This mortgage is different. Since you don’t have to pay down the principal, monthly payments are much lower than the standard fixed rate mortgages. However, when the interest only period expires (usually 5-7 years), you must either:

  • Pay off the entire balance in a lump sum                                                                                             
  • Start paying off the principal within each monthly payment.

This is the most crucial part of your homebuying process and should only be handled by a mortgage professional. Please seek the advice of financial professionals during your mortgage selection process.

For any other real estate questions, contact us at Info@MetroRealtyphx.com or 602.687.9933.

HUD No. 10-190
HUD Public Affairs
(202) 708-0685
FOR RELEASE
Tuesday
September 7, 2010

FHA SHORT REFINANCE OPTION NOW AVAILABLE
Effort designed to encourage principal write-downs for responsible borrowers

WASHINGTON – In an effort to help responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development today will begin providing an additional refinancing option for underwater borrowers.

Originally announced in March,
http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-058 , this enhancement of Federal Housing Administration (FHA) refinance program will offer certain ‘underwater’ non-FHA borrowers who are current on their existing mortgage and whose lien
holders agree to write off at least ten percent of the unpaid principal balance of the first mortgage, the opportunity to qualify for a new FHA-insured mortgage.

The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth – also known as being ‘underwater’ – because their local markets saw large declines in home values.

As announced earlier this year, this change as well as other programs that have been put in place will help the Obama Administration meet its goal of stabilizing housing markets by offering a second chance to up to 3 to 4 million struggling homeowners through the end of 2012.

Participation in FHA’s short refinance program is voluntary and requires the consent of all lien holders. To be eligible for a new loan, the homeowner must owe more on their mortgage than their home is worth and be current on their existing mortgage. The homeowner must qualify for the new loan under
standard FHA underwriting requirements.

The property must be the homeowner’s primary residence and the borrower’s existing first lien holder must agree to write off at least 10% of their unpaid principal balance.

 In addition, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent and a combined loan-to-value ratio no greater than 115 percent.

To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens.

To be eligible, servicers must execute a Servicer Participation Agreement (SPA) with Fannie Mae, in its capacity as financial agent for the United States, on or before October 3, 2010.

For more information on FHA Short Refinance option, read FHA’s mortgagee
letter.
http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-23ml.pdf

HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving
quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business.

More information about HUD and its programs is available on the Internet at www.hud.gov and
espanol.hud.gov.

 http://www.addthis.com/bookmark.php?v=250&pub=xa-4aaa9fbe130980b4

Making Home Affordable  <http://www.makinghomeaffordable.gov>

Help for America’s Homeowners   <http://www.makinghomeaffordable.gov>
HUD Implementation of the Recovery Act  <http://www.hud.gov/recovery>

HUD.GOV/Recovery  <http://www.hud.gov/recovery>

Federal Housing Administration Insuring More Than 37 Million Mortgages Since 1934

http://portal.hud.gov/portal/page/portal/HUD/federal_housing_administration
http://portal.hud.gov/portal/page/portal/HUD/federal_housing_administration

Public and Indian Housing Ensuring safe, decent, and affordable housing 

<http://portal.hud.gov/portal/page/portal/HUD/program_offices/public_indianhousing>

Please refer all financial and mortgage questions to your financial and mortgage provider.

For real estate questions, contact us at Info@MetroRealtyphx.com or 602.687.9933.

What would the United States of America be without its taxes?   The same thing goes for your home mortgage. Not only does it require its property taxes, it needs insurance as well.

The total monthly payments are often referred to as the PITI. These initials stand for principal, interest, taxes, and insurance.

Property taxes: Our Arizona property taxes go towards schools, libraries, emergency services, and other governmental services. There is no way around them.

Each monthly mortgage payment may include a prorated portion of the annual property taxes that you owe.

For example, if your annual taxes are $2,200, each of your monthly payments may include $200 of property tax, in addition to the principal and interest. Sometimes, you may pay your property tax payments directly without having them included in your mortgage payment.

Insurance: It has become almost a standard requirement for the homeowner to purchase homeowner’s insurance. This insurance may cover both the home and its contents in the event of a flood, fire, or other damage. Usually you, as the homeowner, should purchase insurance from a separate insurance firm.

Additionally, if you can’t afford a down payment of at least 20% of the purchase price, you will probably have to buy private mortgage insurance (PMI). This insurance protects the lender if the buyer defaults on the mortgage. PMI may add $50-100 or possibly more to the monthly mortgage bill.

Bankrate.com has a monthly mortgage calculator to help with giving you an idea of what you may have to pay.

Always consult your lender or financial consultant regarding any mortgage related questions.

For any other questions, you can contact us at Info@MetroRealtyphx.com or 602.687.9933 .

Unless you have been left with truckloads of money by your deceased Uncle Sal, you will need to pay a down payment and get a mortgage.

A down payment is a percentage of the total purchase price of the home. The mortgage loan is the money used to cover the rest of the expense of buying the home.

Mortgages work as follows:

  • Loan: A lender, such as a bank, agrees to lend the home buyer an amount equal to the difference between the down payment and the full purchase price of the home.  The amount of the loan is called the pricipal.  If a home costs $100,000 and the buyer pays a 20% down payment of $20,000, the pricipal is $80,000.
  • Repayment: The buyer must repay the lender over time through monthly mortgage payments. These payments typically pay down the principal plus interest. If the buyer fails to pay the mortgage, the lender can foreclose on the house, taking it back from the buyer.

Frequently, lenders today expect a 20% down payment of the total purchase price. Ask your mortgage adviser if there are any special mortgage programs available to first time homebuyers. Some first time homebuyers are eligible for a FHA (Federal Housing Administration) loan. These types of loans require down payments of just 1-3%. Talk with your lender, find out your best options, and you will better informed of the type of loan that best suits you.

For any questions on mortgages or financial matters, consult your mortgage and financial adviser.

For any other real estate questions, contact us at Info@MetroRealtyphx.com or 602. 687.9933.

Phoenix real estate, residential,Phoenix homes, first time homebuyers

Okay, so you were young and did not take care of your bills like you should have. Now, you want to buy a house. Do not despair!

You can improve your credit over time. Credit reports and scores generally cover only the previous two year. Major credit issues such as bankruptcy remain on your report for 10 years. Improving your credit involves displaying good credit behavior:

  •  
  •  Pay monthly bills: Pay all loans and other monthly bills promptly and in full every month.
  •  Pay off credit cards: Pay off your credit car bills on time and in full every month. Always pay more than the minimum monthly payment on your credit cards.
  • Never max out credit cards: Maxed-out cards send out a “red flag” to creditors. They will question your spending habits.
  • Don’t get more credit cards than you need: Owning several credit cards can suggest that you have cash flow problems, even if no problem exists. 

If you have good credit, apply for a mortgage and then get turned down ask the lender to provide you with a written explanation. The lender must supply one. The explanation will identify the problems with your credit so that you know what needs improvement.

For any questions relating to your financial history, ask your financial adviser.

For any other questions, please do not hesitate to contact us at: Info@MetroRealtyphx.com or 602.687.9933.