Mortgage and Real Estate Blog

There are plenty of projections out there that say that the mortgage and real estate market will come together to help buyers get into the homes that they’re interested in. The reality is that it’s not all about speculation - especially given a report in California that’s just been released:

(source)Declining home prices coupled with low interest rates prompted more home buyers to purchase in 2008 compared with last year, according to the CALIFORNIA ASSOCIATION OF REALTORS(R)’ (C.A.R.) “2008 Survey of California Home Buyers.” Sixty-nine percent of all home buyers reported that price declines encouraged them to buy a home, while 40 percent said that low interest rates enabled them to move to a better location.

Sure, the message is focused on homes in California - the chance to afford a nicer home and to buy property in a better neighborhood. But that doesn’t mean that you’re going to be in a position to find completely different results. Michigan is a great example; you’ll be able to get a better Michigan mortgage and the right real estate agent so that you can be sure that you find the right home and the right loan to put you in it.

If you are buying homes in Ann Arbor, Michigan, this real estate agent is saying you can get them less expensively. That’s good news. In fact, there are some great things going on in Ann Arbor. Need a real estate assistant in Ann Arbor?

Whether you are buying or selling real estate in Ann Arbor, you’ll need a good mortgage company to help you facilitate the transaction. Keep up the good work out there and keep it local.

The Press Association is reporting that more people than ever before are failing to keep up with payments on sub-prime mortgages. Of course, the reasons for this are numerous.

One very important reason cited is the credit crunch. Since interest rates are on the rise - sharply - this is causing people who cannot qualify for better loans to get stuck with undesirable mortgage payments as the price of gasoline, food, electricity, and other lifestyle necessities are increasing. This so-called “credit crunch” may just as well be termed “lifestyle crunch”. The middle class is getting left out in the cold.

The bottom line is that refinancing a mortgage in today’s economy is more difficult than it was a year or two ago. That’s hurting a lot of people who need to refinance, but can’t.

If you find yourself in the position of needing to refinance your mortgage, try a mortgage company that has been willing and able to help home owners get the best deal.

Here are a hand full of real estate and mortgage websites we recommend:

Real Estate

Assistant For Real Estate - A virtual assistant for real estate agents and brokers. Save yourself some time, money, and headache.

Virtual U. - A blog that instructs virtual assistants on how to improve their services.

Seaside Views - Looking for coastal real estate in Florida? Start here.

Homes For Sale - This real estate broker in New Jersey deals exclusively with high end luxury homes.

Park City Journal - More than a real estate blog, this is a community blog. And it covers Park City, Utah very well.

Investor Wealth - A great blog for real estate investing.

Building Systems Network - A blog focused on ecological home construction, green building, and modular homes.

GW Kime & Associates - Real estate agents serving Michigan, primarily the Ann Arbor area.

Mortgage

Michigan Mortgage - Looking for a mortgage company in Michigan? Try this one.

Mortgage Tracker - When you want the latest, and the best, information on anything related to mortgages, this is the place to check first.

Learn how you can have your mortgage or real estate blog
managed by professional business blog consultants.

When it comes to getting a mortgage, you have three different types of mortgages available. You can get a fixed rate mortgage, an FHA Renovation Mortgage, or a reverse mortgage. Do you know the difference?

Here’s a brief definition of each type of mortgage and if you have any further questions about which type of mortgage might be right for you, you’ll want to talk to a professional mortgage broker right away.

• Fixed Rate Mortgage - This is the most common type of mortgage on the market today. Your interest rate is fixed and stays the same over the course of the life of your loan. The lender is insured for the amount of the mortgage in case the borrower defaults.
• FHA Renovation Mortgage - This type of mortgage allows homeowners to borrow money to renovate their home. You can borrow up to 110% of the estimated repair costs. Your minimum loan amount is $5,000 and there are some restrictions.
• Reverse Mortgage - For seniors age 62 and over who are ready to downsize, but aren’t prepared for a conventional loan.

Find out which type of mortgage is right for you.

There are various strategies that people use to pay off their mortgage earlier than expected. Whether you have a 30-year or 20-year fixed mortgage, you can put one of these strategies to use. The two strategies that I’ve seen the most and that seem to work for many homeowners are:

1. Yearly lump sum payment
2. Bi-weeily mortgage payment

Many people will take their IRS refund and apply it to their mortgage in order to make a lump sum payment each year. The amount of the lump sum, of course, is dependent upon the refund. But this strategy can be utilized in a number of ways. You can use other investments and income streams to make that yearly lump sum payment.

The most popular method of early payment on the mortgage, however, is the bi-weekly payment system instead of the monthly payment system. If you pay monthly then you only make 12 mortgage payments each year, but if you pay bi-weekly then you end up making 13 payments. It’s an extra payment every year. Over the life of the loan you’ll end up saving money on interest and paying your mortgage early, resulting in a huge savings.

Some people just apply a little extra payment to their mortgage bill every time they make a payment. That’s fine, but the risk associated with this type of payment system is the mortgage company may apply your payment to interest. What you really want them to do is apply your additional payments to principle. But you have to tell them to do that or they will default to paying your interest with that additional payment. That won’t help you a lot. The idea is to pay off that principles as early as you can so that you end up paying less interest overall.

As Baby Boomers get older, reverse mortgages look more and more attractive.

A reverse mortgage is an instrument that allows aging homeowners, 62 years of age and older, to downsize their homes without tapping into their existing equity and going deeper into debt. You can take out a loan on the new home, take your existing equity and bank it, and skate by for a few years with no mortgage payments. It’s an ideal solution for fixed income elderly couples who are finding it more and more difficult to get by in the home that they’ve lived in for so many years.

Reverse mortgages are popular because they protect a lifelong of hard work and risk. If you have a lot of equity built up in your home, but your home is too large for your current needs, you may not want to sell just so you can go right back into debt. Since the first few years of a mortgage are spent paying off interest, it’s a losing proposition for folks who may not be able to enjoy a home after the biggest part of the expense is paid off. You can enjoy a low-interest loan that can be paid off after a sale of your house in a few short years and enjoy the low interest rate that comes with it.

Reverse mortgages, for many couples are a godsend.

One important calculation for your monthly budget is your cost in fuel for telecommuting. If you’re like a lot of people, in the 1980s and 1990s you moved out of the suburbs and into the exurbs, or rural areas near a major metro center. That move made sense back then when gas was just a little over $1 per gallon. Now that’s it’s over $4 per gallon it could cost you a lot more to drive the distance than it would to buy a bigger house closer into town. What should you do?

Daniel McGinn has one answer. But there is a better way to figure out than simply taking one man’s advice. You can calculate how much your fuel costs would be under a certain set of circumstances and then make your decision based on real world economics.

But you’ll also want to calculate your mortgage if you did move. Would that bigger house in the suburbs cost you more each month and, if so, how much more? Would you save in fuel what it would cost you in mortgage? Isn’t it time to do the math?

Regardless of how the housing market is and whether you are about to buy a new home or not, you should still be monitoring your credit score. You never know when that good opportunity will come along.

Homebuyers: Are You Thinking About the Housing Market?

One thing that you’ll want to think about before buying a home is the same regardless of whether or not the market is great: when you apply for a mortgage knowing your credit score is important. When the market is favoring sellers, your credit is important because homes are going to cost more and you’ll need to borrow more.

But more than that, homebuyers may want to take a closer look at the trends within the housing market: mortgage lenders pay attention to the trends. When home prices are falling because the market has slowed, for example, some lenders are more reluctant to approve home loans because there’s a fear that if property owners know that they owe more on their home is worth, they face challenges.

The Rest of The Story here

With all of the foreclosures going on right now and the high mortgage rates in Michigan, anything that might lower your monthly mortgage payments is always welcome. I found this post on the Michigan Mortgage Blog interesting;

Can You Lower the Payments on Your Michigan Mortgage?

With the rising costs of gas and home heating oil (as well as everything else), a number of people have begun to wonder if it is possible to lower the amount that they pay on their Michigan mortgage so that they have a bit more to spend on other necessities.

So, is it possible for you to lower your monthly mortgage payments? It may be . . .

The Rest of The Story on how to lower the rates you pay on your Michigan Mortgage here