Archive for January, 2010
Get Important Advice About 30 year fixed refinance and Discover Helpful Tips About 40 year mortgage rates and mortgage refinance no closing costs.
If you don’t want to give a continuous monthly payment for your house and want to save money, you can do it by refinancing your home. If you get a refinance mortgage loan you can easily save your money without paying monthly payments. Under a mortgage refinance plan, your present deal is reinstated with a different deal. It supplies its borrowers with many benefits. It decreases the house payment and releases some of the equity built in a lump sum payment or installments.
Mortgage refinance refers to changing the current loan with some other loan. It is capable of giving a positive edge if your credit history is not up to the mark. Your personal lender must be knowledgeable of your history and can suggest you favorable terms of refinance mortgage loan.
There are various types of refinance mortgage loan which you can find in the market. Through these loans you can refinance your mortgage.
1. Fixed Rate: Here, the interest rate on the base amount is fixed through out the years of the payment of the loan.
2. Adjustable Rate: This type of loan has changing interest rates depending on the market condition. In this type of refinance mortgage loan, there is generally an introductory rate period where the interest rate is fixed for a few years (3 and 5 years are common) at a very low rate. After this introductory period has passed, the rate becomes a true variable rate, focused on the rates of the market.
3. Fully-amortizing loan: Through this loan the monthly payments are changeable with interest rates, and towards the balance.
4. Balloon Home Loan: The interest rate here is fixed for a set period of time. Afterwards, it works as an adjustable interest rate.
5. Home Equity Loan: This is a fixed rate loan allowing you to tap into your equity while giving you a fund to spend. This type of loan is ideal for mortgage refinancing only if you have enough equity in your home to pay off your original mortgage lender.
When applying for a refinance mortgage loan you need to be careful and to be fully informed. You should know that whether it beneficial for you or not:
- While applying a refinance mortgage loan you must understand about that loan and do some research on it. – You must have a full control over your debts, and there is no hidden cost. – Make sure that your repayments will be reduced and not increased. – Your lenders fully inform you about the consequences of the steps you are taking. – You are better off as a result of the solution you have chosen.
Several mortgage companies can be able to assist you through relationship with lenders with a mortgage refinance loan. But make sure about the company’s performance.
Whatever refinance mortgage loan you have chosen, with fixed interest rates or with variable interest rates, you have to study all the related data to avoid errors which may lead to the loss of real estate. It is also important to find appropriate mortgage loan rates and interest rates among an enormous variety of mortgage loan companies and lenders.
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Posted in Mortgage Market Updates | No Comments »
Mortgage Market Update
From the desk of Joe Bailey
Keeping You Informed…
The Easy-To-Understand 2010 Home Buyer Tax Credit Program Summary
November 6, 2009, Congress modified the $8,000 First-Time Home Buyer Tax Credit program, turning it from a “first-time” buyer program into an “everyone” Home Buyer Tax Credit program.
Under the program’s new terms, first-time buyers are eligible for up to $8,000 in federal tax credits and long-time homeowners get up to $6,500. A “long-time” homeowner, according to the IRS, is someone who has used a home as a primary residence for at least 5 consecutive years dating back to 2002.
This is an important qualifier for existing homeowners.
If you plan to claim the Home Buyer Tax Credit in 2010, here’s what you need to know.
First, you need to know that the tax credit is federal. Therefore, it doesn’t matter whether you live in California, Chicago, or anywhere else — if you file U.S. taxes, you’ve cleared the first eligibility hurdle. All you have to do is file.
Second, you need to know your deadlines.
In order to claim the Home Buyer Tax Credit, you must be under contract for your new home no later than April 30, 2010 and you must be closed on your new home between the dates of November 7, 2009 and June 30, 2010.
So long as you meet these dates, you’ve cleared the second eligibility hurdle.
Third, you need to know what types of home buys are specifically excluded by the IRS.
- The home may not be acquired from a mother, father, spouse, or child
- The home may not be acquired from an entity in which you’re a majority owner
- The home may not be acquired by gift or inheritance
- The home’s primary buyer must be at least 18 years of age
- The home’s purchase price may not exceed $800,000
- The home must be meant for use as a primary residence
These rules ensnare just a small percentage of home deals so if you meet the eligibility requirements as shown above, you’re probably going to be in the clear. It’s at this point, though, that you should double-check just how much of the credit you’re eligible to claim.
The maximum tax credit as authorized by Congress is for up to $8,000 for first-time home buyers and for up to $6,500 for long-time homeowners. Not everyone will get access to the full amount.
For one, the tax credit is limited to 10% of the home’s purchase price.
- A $300,000 home is eligible for up to $8,000 in credits to first-timer home buyers and up to $6,500 to long-time homeowners
- A $50,000 home is eligible for up to $5,000 in credits to first-time home buyers and up to $5,000 for long-time homeowners
And secondly, the tax credit is tied to the home buyer’s income levels.
If you are a single-filer with the IRS and your income is less than $125,000, you will receive the maximum credit. This is the same for joint-filers with income below $225,500. In households where income exceeds those limits, however, the home buyer(s) is subject to a tax credit haircut.
The credit reduction is 5% for each additional $1,000 in claimed income.
- Single-filer earning $125,000 : 100% of the tax credit
- Single-filer earning $126,000 : 95% of the tax credit
- Single-filer earning $127,000 : 90% of the tax credit
- Single-filer earning $145,000 : 0% of the tax credit (i.e. no credit)
The math is the same for joint-filers:
- Joint-filers earning $225,500 : 100% of the tax credit
- Joint-filers earning $226,500 : 95% of the tax credit
- Joint-filers earning $227,500 : 90% of the tax credit
- Joint-filers earning $245,500 : 0% of the tax credit (i.e. no credit)
At this point, you know your own eligibility, and the size of your credit. However, you may still have questions. Thankfully, the IRS thought of that with their Bizarre Scenario FAQ. It’s worth a look. The FAQ includes scenarios for couples getting married, divorced and separated, plus “flipping” and various “renting homeowner” scenarios.
Here’s how to claim your Home Buyer Tax Credit. There are just 2 very basic steps:
- Review the eligibility requirements above — just in case!
- File your 2010 taxes online
Or, if you want to receive your tax credit faster, consider filing an amended 2009 return. This is especially helpful for self-employed home buyers and other folks that typically file between April 15 and the October 15 deadline.
That’s it! Just be sure that you’ll use your new home as your “main home” for at least 3 years. Otherwise, the IRS will reclaim your refund.
Lastly, please remember that I am a loan officer — not an accountant. Consult a tax professional for tax matters. You can also use me for rate quotes.
“Play like a champion today!”
Joe Bailey – Loan Officer
O. (831) 689-8500
C. (831) 251-5167
Posted in Mortgage Market Updates | 3 Comments »
One of my favorite quotes from Think and Grow Rich by Napoleon Hill.
It comes from the chapter about Desire which is said to be the starting point for all achievement and the first step to riches.
I bargained with Life for a penny
And Life would pay no more,
However I begged at evening
When I counted my scanty store.
For Life is a just employer,
He gives you what you ask,
But once you have set the wages,
Why, you must bear the task.
I worked for a menial’s hire,
Only to learn, dismayed,
That any wage I had asked of Life,
Life would have willingly paid.
You can have anything you desire in life, but it won’t come easy.
Posted in Inspiration | No Comments »
I’ve always said that Short Sales are good for the economy and good for the country. The Administration continues to agree. The Treasury promulgated final guidelines to urge servicers to follow through with short sales as an alternative to foreclosure for those homeowners that don’t qualify for a modification.
To encourage servicers to accept a short sale, the Treasury is offering incentive payments of $1,000 per completed short sale. Seconds (and other junior lien holders) will be paid to release their liens, up to $3,000 of the short sale proceeds as long as the primary investor agrees to share the earnings, and for this the government will pay the first up to $1,000.
In the program, the Seller/Homeowners will get up to $1,500 to help with relocation, and must be fully released from any future liability. The Treasury’s program – called “Home Affordable Foreclosure Alternatives Program” or HAFA was initially announced back in May but it has taken several months to announce the final plan that was just released.
Prior to moving forward with a foreclosure, the borrower must be considered for the HAFA short sale program which requires the servicer to obtain an independent value of the property and requires that the lender respond to a Short Sale offer within 10 days!
There is more good news for real estate agents (no surprise – as they are a very well organized lobby) – the program prevents services from forcing agents and brokerages to reduce their commissions as a prerequisite for approving the short sale and requires that properties be listed prior to short sale approval.
The BIG HOWEVER . . . some “bad news” for real estate investors. A Short Sale Agreement under HAFA must contain a restriction that a purchaser may not sell the property within 90 calendar days of closing. Is this the end for short sale investors? It will certainly be a big topic inside the RE$ource Vault, but in short, remember, the HAFA guidelines do not apply to all short sales and lenders have been and will continue to do short sales outside of HAFA.
I’ve always said that if a house can “solve its own problem” by simply being listed with a competent agent and the investor is not adding any value to the transaction, the investor should not be involved anyway. HAFA appears that it may streamline the process for those short sales that can and should be approved directly from a borrower to an end user purchaser when a real estate agent can handle everything themselves. This will be a good thing for the overall economy and therefore the future of real estate investing and our country.
However, there will continue to be millions of potential short sales that do not fit the guidelines and/or will not be able to “fix themselves” without the involvement of a competent investor (a move back to the days of “ugly, weird, haunted, or high-end”). Where an investor can add value, contribute, and construct deals that would not happen without them, there will continue to be an abundance of opportunity.
Posted in Real Estate News | No Comments »
Are you tired of hearing about foreclosures and the housing market and not understanding what it all means? I think I have the solution for you!
We hold free foreclosure workshops that will help educate you about real estate and motivate you to get off the sidelines. I am confident that through this experience you will be awakened to financial opportunities that are little known, but powerful and profitable to those who employ them. We are excited to introduce you to wealth building ideas in real estate that will make you money today and in the future. Come and let local real estate millionaires share their trade secrets.
You will learn how to make money now, in the current market with the 4 hot money making strategies at our FREE workshop.
-Foreclosures
-Short Sales
-REO’s
-Auctions
Here is a little background about our company. We are a group of seasoned businessman and women, real estate investors, entrepreneurs and multiple franchise owners that specialize in foreclosures, short-sales, property acquisition, bank negotiations, pre-foreclosures, wholesales, deed transfers, etc. Often times we work with homeowners who are in jeopardy of losing their home, attempt to negotiate lower pay-offs with their lenders, find investors for the properties or other buyers, short the amount owed and walk away with the difference. We are not Realtors…WE ARE REAL ESTATE INVESTORS. In this time of recession we are expanding rapidly and are looking for sharp, ambitious, money motivated individuals that want to create massive success. Our team buys and sells real estate with over 22,000 investors nationwide. We will teach and mentor the right candidate, provide you with deals, and assist you in creating a cash flow producing business through investing. My team has the ability to personally train those who are SERIOUS to achieve a substantial monthly income. We have a powerful, wealth creation system taught by multi-millionaires, that will show you step by step, how to create wealth.
We are looking for positive, creative and entrepreneurial minded associates able to bring new ideas to the table. No experience is necessary because full mentoring can be provided. See firsthand how we make your yearly salary in just a few deals. It is an exciting time as I believe that you will have tremendous conviction and respect for what it is that we do. It won’t be hard to see the opportunity for yourself as an investor and a business owner to be extremely lucrative. The compensation completely depends on YOUR output and ability to grasp the concepts. This is not a W-2 type opportunity, we give you knowledge to go out and make money for yourself!
Our workshops are open to everyone and are held nationwide. Please contact me for more information regarding opportunities in your area.
I look forward to hearing from you!
Aaron Clendenning
Los Angeles, CA
aaron@embracevision.com
310-662-1784
Posted in Education | 1 Comment »
