What is the difference between loan pre-approval and pre-qualification?

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Pre-approval and pre-qualification are steps ywww.cbbaker.comou can take to line up your mortgage loan before you start house hunting in Wilmington NC. They are different, so read on:

Pre-approval:

  • is actually applying for, and getting, a conditional commitment for a mortgage loan up to a specific amount of money.
  • is usually good for 60-90 days.
  • applies, even though you might not have chosen the home you will buy.
  • often requires a loan application fee.
  • gives you bargaining power, because it tells the seller you are ready to buy and able to get financing.

Pre-qualification:

  • is the result of a lender taking a cursory look at the buyer’s income, credit history and assets.
  • states the buyer probably could afford to buy up to a certain limit.
  • does not include a loan commitment.
  • tells sellers you’re serious about buying and their house is in your price range.
  • usually costs no more than the credit report fee.

Some advantages of pre-qualification and pre-approval are:

  • A pre-approval or pre-qualification can speed closing because the paperwork for the loan has already been started.
  • You will begin learning about the financing process, and any problems that might arise can be resolved early.
  • You know in advance how much you can borrow.
  • Your offer is more attractive to the seller, because the seller won’t have to guess about whether you can afford the house.

Where do you begin when it’s time to look for a new house? Start by calling or e-mailing us with your home-buying questions. We can give you an idea of how much home you can afford to buy, then you can follow up with your local lender.

Categories: Pre-Approval for Loan, Pre-Qualification, wilmington nc real estate, Wilmington NC real estate stats 2014, wilmington real estate stats

PLAY SMART: Savvy Tips On Buying A Vacation Home

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Great Reasons To Buy A Vacation Home

Figure Eight Island

Figure Eight Island

They provide another investment that includes a mortgage-interest tax deduction.

We’ve all thought about it while lying on the beach or inhaling the fresh mountain air: “Why don’t we buy a vacation home?” Owning a vacation home can be a good decision if you buy smart.

Whether you rent it out or not, you can deduct the mortgage interest as long as you use the home more than 14 days or more than 10% of the number of days the home is rented annually at a fair rental, whichever is longer.

Qualified second homes include houses, condominiums, cooperatives, mobile homes, house trailers, boats or similar properties that have sleeping, cooking and toilet facilities.

Here’s an interesting twist on the mortgage interest deduction: If you take out a home equity loan on your first home and use the funds to acquire your second home, the interest on the home equity loan is also deductible. That’s three mortgage interest deductions off your tax return!

Consult IRS Publication 936 for a complete discussion of how mortgage interest for a second home is deductible.

You can purchase your future retirement home now, at today’s prices.

Though your second home may be a vacation home now, if you buy right you can convert it into your principal residence later.

They can produce their own income.

Renting out a second home occasionally or often can help you pay for the property with OPM (other people’s money). Check with your tax advisor about how much of the upkeep and management expenses are deductible against your income.

Buying Tips From The Experts

Buy something within a reasonable distance.

Be sure you can get to your vacation home in a short amount of time. Before you make a final decision, travel the distance on a typical Friday afternoon to see whether the drive will be too much to deal with after a long work week.

Rent in the area several times before you buy.

If you really like a particular area, check it out during different seasons. This way you get to know the climate, people, pests, traffic patterns and other regional particulars first-hand.

Consult other owners.

Check with owners of nearby properties about public and private facilities, special maintenance required due to location or weather, the social climate, local development plans and prevalence of crime. Learning about the lifestyle of the area may help you narrow down your choices.

Think home first, investment second.

Although you may be able to generate rental income from your vacation home, it may not cover your ownership costs. (If you want to try real estate investments, give us a call to look at properties in the local area.)

Consider different styles of properties in a vacation area.

To minimize upkeep and have a more secure environment, a condo may be preferable to a single-family home. If you plan on converting it to a retirement home, consider what type of home you’ll want as a full-time residence.

Call us 910.202.3607 or kaybakerassociates@ec.rr.com or www.cbbaker.com

Categories: Buying a Vacation Home, Uncategorized, wilmington nc, wilmington nc real estate, wilmington real estate stats, Wrightsville Beach NC

69th NC Azalea Festival Wilmington NC 2016 | Get Your Party Hat On.

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69th NC Azalea Festival Wilmington NC 2016 | Wilmington NC real estate

 

 Join us for the 69th NC Azalea Festival in Wilmington NC. April 6 – 10 .

 

 

“The North Carolina Azalea Festival is Wilmington’s annual community celebration and the largest festival of its kind in the state. Founded in 1948, the Azalea Festival has emerged as Wilmington’s premier event.

Each April, a full week of natural beauty, big-name entertainment, festive galas, fun family events and Southern hospitality come together to showcase the charms of the Wilmington area. For community pride and springtime pageantry, the North Carolina Azalea Festival has no equal!

The Festival’s concerts, fairs and special events are viewed by more than one million people each year, in person and through media coverage. More than 200,000 are estimated to attend the annual two-day street fair, while more than 100,000 gather to watch the Festival parade. Each event is a celebration, beginning with the traditional arrival of Queen Azalea at the official opening of the five-day event. Stars glitter throughout town as Southern belles and their escorts promenade through lush gardens at the annual garden party. Everywhere the blooming azaleas offer colorful testimony to the rich heritage of coastal Carolina.”

Here is a sampling of the schedule for this years festival from the festival website.

  • Azalea 5K/10K/Kid’s Run

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    2APR2016
    The North Carolina Azalea Festival 5K/10K & 1 mile-Kid’s Run is an annual event hosted by the Cape Fear Volunteer Center. Kids, dogs, and costumes are welcome! All proceeds from …

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  • Azalea Sweep

    2APR2016
    The Azalea Sweep is an event that takes place a week or two prior to the Azalea Festival. Officers, committee members, and volunteers get together and clean various places where …

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  • Queen’s Coronation

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    6APR2016
    The Queen’s Coronation is an annual event where the Queen is officially crowned the North Carolina Azalea Festival Queen Azalea. In attendance are the Festival Celebrity Guests as well as: City …

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  • Brigade Boys & Girls Club Community Visit

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    7APR2016
    Each year the Azalea Festival Queen Azalea, Celebrities, and Official Party visit a community organization to help spread the Festival spirit.  We were proud to visit the Brigade Boys & …

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  • Celebrity Reception

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    7APR2016
    The Celebrity Reception provides sponsors of the Festival a close and personal opportunity to see and meet Queen Azalea, Celebrity Guests, and other Festival Dignitaries.  A relaxing luncheon on sprawling …

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  • School Visit

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    7APR2016
    Each year the Azalea Festival Queen Azalea, Celebrities, and Official Party visit a local school to share the Festival spirit.  The school works year-long to prepare a program and showcase …

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  • The Avett Brothers

    7APR2016
    When you’re receptive to the forces around you, you’ll notice there’s something powerful in the air. It’s that feeling of inspiration to which The Avett Brothers consistently remain open.” It’s a spirit …

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  • After Garden Get Down

    8APR2016
    The After Garden Get Down at Bluewater Grill is a fun, dockside party on Friday, March 8th from 2-5 PM, immediately following the Airlie Luncheon Garden Party.  Guests enjoy live music by Darryl …

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  • Airlie Luncheon Garden Party

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    8APR2016
    The premier event in Wilmington, the Airlie Luncheon Garden Party is one you can’t miss! Join us and 2,500 of our closest friends as we kick off Spring with big …

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  • Cape Fear Garden Club Azalea Garden Tour

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    8-10APR2016
    The Cape Fear Garden Club Azalea Garden Tour © is sponsored by the Cape Fear Garden Club, Inc. The tour has been featured in SOUTHERN LIVING and is one of …

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  • City RockFest Tour

    8APR2016
    Join us for the City RockFest Tour 2016 with Seventh Day Slumber, Decyfer Down, Childen 18:3, Spoken, & Disciple, presented by: McDonalds, McAnderson’s Inc. and the North Carolina Azalea Festival.Read More…

  • Juried Art Show

    8-10APR2016
    Over 100 North Carolina artists and national artists present fine paintings at the Annual Juried Spring Art Show and Sale.  The Art Show is a long-standing tradition of the North …

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  • Snoop Dogg with Doug E. Fresh

    8APR2016
    Multi-platinum artist, actor and entertainment icon Snoop Dogg is at the forefront of popular culture with award-winning albums and songs, multiple films, lifestyle products, philanthropic efforts, and digital ventures, including …

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  • Street Fair

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    8-10APR2016
    The North Carolina Azalea Festival Street Fair Presented by Wells Fargo is a free, family event with over 330 arts and craft vendors, 40 food vendors, 2 stages, a Children’s …

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  • USCGC Diligence Tours

    8-10APR2016
    Tour times are: Friday from 12:30 PM  – 15 minutes before sunset Saturday/Sunday from 10:00 AM  – 15 minutes before sunsetRead More…

  • Boxing

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    9-10APR2016
    The North Carolina Azalea Festival Boxing Tournament showcases some of the finest boxers from the National and International level of competition & from the military branches. Queen Azalea & VIP …

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  • Chase Rice with Kane Brown

    9APR2016
          Chase Rice When he takes the stage to perform, Chase Rice pulls no punches. “You’re gonna be mine and I’m gonna be yours for an hour and …

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  • Coin Show

    9-10APR2016
    A fun filled family event! Children are given free foreign coins to learn about currency and foreign countries. More than 30 dealers from several surrounding states are on hand to …

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  • Fireworks

    9APR2016
    A favorite Festival event, the fireworks are presented over the majestic Cape Fear River. Come early to pick out your best viewing spot!Read More…

  • Historic Home Tour

    9-10APR2016
    The North Carolina Azalea Festival Home Tour is an annual event held by the Historic Wilmington Foundation. Proceeds from the Home Tour will advance the Historic Wilmington Foundation’s efforts to …

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  • MGC Parade Mile

    9APR2016
    Welcome to the MGC Parade mile. Local law firm McAngus Goudelock & Courie is teaming with Go Time and the North Carolina Azalea Festival to put on a one of …

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  • Parade

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    9APR2016
    The Azalea Festival Parade continues to be one of Southeastern North Carolina’s largest annual event, with over 100,000 viewers each year. Our traditional parade route flows right through the heart …

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  • Patrons’ Party Gala

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    9APR2016
    The Patrons’ Party Gala is the grand finale for sponsors of the Azalea Festival.  A black-tie event filled with wonderful food displays and dancing to the sounds of the hottest …

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  • Street Fair Children’s Area

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    9-10APR2016
    The Street Fair Children’s Area is family fun for everyone! Games, children’s craft projects, and a stage dedicated to children’s performances all await you at the Cotton Exchange.   Saturday …

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  • Street Fair Multicultural Stage

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    9APR2016
    We invite the public to join us for a unique, family-friendly multicultural experience on Saturday and Sunday, April 9th and 10th. The kick-off of the multicultural festivities goes global beginning …

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  • USS North Carolina Battleship 75th Anniversary Celebration

    9APR2016
    Join us and our “living history crew” – active Marines in WWII attire bringing the Battleship to life on Saturday, April 9th! At 1:15 PM, there will be a Special …

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  • Festival Finale

    10APR2016
    Bluewater Grill is kicking off their Waterfront Music Series by hosting the Festival Finale on Sunday, April 10th, the last event of the North Carolina Azalea Festival. Back of the Boat will provide …

    Read More…

From Last Years Festival

azalea

While you are in town, please visit our mobile site mobile.cbbaker.com to view our fabulous real estate offerings.  Or online www.cbbaker.com

Categories: 65th Azalea Festival, 67th Azalea Festival, azalea festival, Wilmington NC homes, wilmington real estate stats

FSBO INCENTIVES: 12 Contract Options That Entice Buyers | Wilmington NC real estate

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Wrightsville Beach NC www.cbbaker.com If you’re selling in today’s Wilmington NC real estate  market, you want to make your house outshine the competition. Buyers are most likely to choose your house if it offers something special. Here are 12 ways to make sure you land a “Sale, Sweet Sale.”  # www.wilmingtonnc-realestate.com

 A Spoonful Of Sugar

1. Offer a warranty.

Purchase a buyer’s home warranty to protect against future problems.

2. Help with closing costs.

Cash-poor buyers concerned more with out-of-pocket costs than monthly payments will especially appreciate this one.

3. Consider financing help.

Provide seller financing or buy down the buyer’s mortgage rate for the first year.

4. Help with utilities.

Pay some or all estimated utilities for 6 or 12 months.

5. Help with fees.

Pay a year’s condominium or homeowners association fees.

6. Pre-pay memberships.

Buy a one-year pool or community golf club membership, cable TV subscription, or other recreational activity.

7. Consider a moving allowance.

Pay the buyer’s documented moving expenses, or provide an allowance toward moving costs.

8. Treat them to window treatments.

Offer redecorating cash for new carpet or drapes.

9. Mow down any objections.

Buy a lawn-maintenance service for a year, or offer a riding mower if the lot is large.

10. Give them a dock on the bay.

If you live in a waterfront community, offer to rent a boat slip for a year.

11. Reimburse buyer the cost of points.

{short description of image} This is often a double benefit for buyers, who save both on the points themselves and on their federal taxes. The IRS now allows buyers to deduct the cost of seller-paid points as a Schedule A mortgage expense.

12. Price your home below comparable properties.

Prove your home’s good value by having an appraisal done and setting the price below the appraised amount.

Call on us for more ideas of ways to make your home the sweetest one on the market. We’ll create a customized marketing program to help get your home sold in any market!

Let us know if we can help.  www.cbbaker.com

Categories: FSBO 101, Sell your home, volunteer in wilmington NC, Waterfront Wilmington NC, waterfront wrightsville beach, wilmington nc real estate, wilmington real estate stats

Giving Tuesday | Dollars and Sense | Wilmington NC

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Tomorrow is Giving Tuesday, after black Friday etc etc…. Tuesday  is the most important day.  There are many organizations locally that would love your support.  Check out http://wilmingtongivesback.org/ for ideas.  Here are some ideas to think about while looking for charities to give too.

Check Out Your Charities Before Being Generous

 

Although most charities are honest and accountable to their donors, CharityWatch (formerly the American Institute of Philanthropy) says the holiday season often brings out a few “fly by night” operators ready to take advantage of your goodwill. To help you choose wisely and give more effectively, CharityWatch offers the following tips:

1. Know your charity. Charities are obligated to provide detailed information, including a mission statement and recent audited financial statements to interested donors. If a charity does not provide you with the information you request, you may want to think twice about giving to it.

2. Don’t be misled by familiar names. Some questionable charities use names that closely resemble the name of a respected, legitimate organization. Check out the charity with CharityWatch (www.CharityWatch.org) or other watchdog organizations before making a contribution.

3. Find out where your dollars go. Determine how much of your donation goes for general administration and fundraising expenses and how much is left for the program services you want to support. CharityWatch’s Rating Guide recommends that in most cases, 60% or more of your charitable donation should go to program services.

4. Do not respond to pressure. It’s your money, so don’t let yourself be pressured into contributing on the spot — or more than you want. You can always say no.

5. Beware of charities offering gifts. Direct-mail solicitations are often accompanied by address stickers, calendars or other “gifts” designed to increase donations. You do not have to make a contribution to keep these gifts, and it is against the law for a charity to demand payment for any unordered merchandise.

6. Avoid giving cash. Also, do not give your credit card number to a telephone solicitor or Internet site that you do not know. Always be sure to obtain a receipt or printed copy of your donation so you will have a record for tax purposes.

7. “Tax exempt” does not always mean “tax deductible.” Not all charities are eligible to receive tax-deductible contributions even though they may have tax-exempt status (for example, political organizations). Tax exempt means the organization does not have to pay taxes. Tax deductible means donors can deduct contributions to the charity on their federal income tax returns. Request the charity’s tax exempt letter to determine whether the organization qualifies for tax-deductible contributions. Or, use the IRS “Exempt Organizations Select Check” online tool — at www.TinyURL.com/a72f74x — to see if donations to a particular organization are deductible.

Categories: #Giving Tuyesday, volunteer in wilmington NC, wilmington nc relocation, wilmington real estate stats, Wrightsville Beach NC

Need to Renovate? A Mortgage Loan That Can Help Pay For Your Home’s Renovations

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1Want to renovate your home’s 20th century-era kitchen? Or maybe you’d like to build that master bedroom of your dreams. You can—with the help of two mortgage programs designed to help homeowners pay for renovations designed to improve the value of a residence.

Fannie Mae offers the HomeStyle Renovation Mortgage, while the Federal Housing Administration (FHA) provides the 203(k) Program. Buyers can take out these mortgages when buying a new home. But they can also refinance their existing mortgage loans into a HomeStyle or 203(k) loan if they need to make improvements to their current homes.

These loans allow consumers to borrow more than a home is worth, as long as you use the extra money you are borrowing to pay for home repairs or renovations.

For instance, if borrowers want to buy a $150,000 home, they can take out a HomeStyle or 203(k) loan for $175,000. They can then use that extra $25,000 to fund the renovation of an aging kitchen or add another bathroom.

Borrowers will have to work with consultants who will study borrowers’ renovation plans and make sure that the homeowners are using the money for the repairs they promised to make.

But that extra work is worth it if it allows you to improve the value of your home while making it a better place to live for you and your family.

If you have questions about these loan programs, don’t hesitate to call us. We can help you determine which program is best for you. And we can guide you through the application process for both types of loans.

Don’t Keep It To Yourself!
After you’ve read and reviewed this newsletter, we hope you’ll pass it on to those you know who are thinking about selling or buying a home this year. They’ll appreciate you thinking about them, and we’ll certainly appreciate the referrals. Your positive word-of-mouth is greatly valued. Thank you!

 

Categories: Get a Mortgage to Renovate, Uncategorized, wilmington beach homes, wilmington nc, wilmington real estate stats

KEY TO SUCCESS | How To Choose Your Rental Property Tenants Wisely

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whitneyHow do you find responsible tenants who pay their rent on time, take care of your property, get on well with the neighbors and stay as long as you want them to?

Recruiting: Ask around to find potential tenants looking for a rental or advertise your property online to find them. Two proven ways to find good tenants is through tenant referrals or a reputable management service, which can advertise your property, efficiently screen applicants and refer people to you for a fee.

PERFECT RENTALSSuccess as a landlord starts with having the right rental property—one that appeals to renters, minimizes your costs, maximizes your income and is likely to appreciate in value while you own it. Wise investments start with the following tips:

1. Location. Be sure the property is in a location where rental demand is high (e.g., near public transportation, employment centers, etc.). Check vacancy rates and how long properties stay on the rental market.2. Property. Buy the type of property that is most desired by renters. In some areas, condos, townhouses or multi-family units may be easier to rent than single-family homes. In other areas, the reverse may be true.

3. Condition. Choose a property in good shape and easy to maintain. Excessive repair and maintenance expenses can seriously impact the profitability of your investment.

4. Demand. Find out what is predicted for the area’s rental market in years to come. Learn what plans are underway to change the neighborhood (e.g., road construction, industrial development, etc.) that might affect the value of or demand for your investment.

Setting Standards: Decide what your rental criteria are—then make sure you advertise the property accurately. Determine the following:

  • Rental price and rental period.
  • Minimum income requirements.
  • Security deposits for last month’s rent, damages, pets, etc.
  • Who pays which utilities.
  • Restrictions on pets, smoking and/or maximum number of occupants or cars.
  • Responsibilities for maintenance, repairs, yard upkeep and pest control.
  • Satisfactory personal and former landlord recommendations.

Applications And Screening: Make sure your application form asks for all the information you need. Ask applicants to show their legal identification and verify the information they’ve provided to you. Remember, although you do have the right to choose who lives in your property, the Fair Housing Act prohibits discrimination based on the applicant’s race or color, national origin, religion, sex, familial status, and handicap or disability. In ads: Describe the property, not the people.

TIP: Ask applicants for their credit reports with their application or permission to order a report directly from a credit reporting agency.
Categories: Choosing a rental client, Things to look for in a renter, Wilmington NC Neighborhoods, wilmington nc real estate, wilmington real estate stats

Is Your Homes Atmosphere Healthy?

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gardentipsEven though you can’t see it, the air in your home can affect the well being of you and your family. Now is a good time to check your home for a healthy atmosphere.

No matter how well you clean, silent, unseen polluters can build up inside a home, making you feel under the weather or even causing illness. Here are a few common polluters and simple solutions for eliminating them:

 

  • Mold and mildew:

 

      These organisms, which can grow wherever there is excess moisture, can cause allergic reactions. The simple solution is to ventilate the kitchen when cooking, and the bathrooms during and after baths or showers. Air conditioning and dehumidifiers help control humidity in the rest of the home. If you are remodeling, add a ventilating fan to the kitchen and baths.

 

  • Dust mites:

 

      These microscopic creatures live where the vacuum cleaner can’t get them-inside mattresses and box springs, down in heating ducts-and can cause allergic reactions. To limit their effect, enclose mattresses and box springs in zippered casings, and have ducts professionally cleaned.

 

  • Carbon monoxide:

 

      This colorless, odorless gas, which can cause fatal illness, can come from malfunctioning furnaces, gas dryers, stoves, or air seeping in from the garage. Equip your home with a carbon monoxide detector and have all appliances serviced regularly. Be sure any walls or floors between the garage and your home are airtight.

  • Cleaning solutions:

 

      Spray and squirt bottles make cleaning faster and easier, but some of the chemicals in the bottles can contribute to indoor air pollution. Look for more environmentally friendly cleaners such as vinegar, baking soda and borax (remember to keep borax out of reach of children).

 

  • The “new” smell:

 

      Carpets, furniture or cabinets made with pressed wood, and other new products can introduce fumes into the home as chemicals used in manufacturing are released. The simple solution for those sensitive to these fumes is to buy carpets with low-emission green labels or all-wood furniture. After a few months, the level of the fume emissions declines, but in the meantime, ventilate your home by opening windows frequently.

 

  • Although you may have to spend a little extra time or money

 

    to eliminate your home’s air polluters, it may be worth it for your family’s health.

 

Categories: Healthy Home Atmosphere, Uncategorized, Wilmington NC Neighborhoods, wilmington real estate stats, Wrightsville Beach NC

OPTIONS: Ten Savvy Ways To Pay For A Home Today in Wilmington NC

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Different buyers have different mortgage needs. Fortunately, lenders today offer many mortgage options to choose from. Chances are you’ll find a mortgage plan that works for you.spartanburgBecause points, fees and interest rates vary, check with us or your lender for specific information on the type of loan you are considering. The “snapshot” interest rate examples shown here are for illustrative purposes only and may not reflect current rates. For simplicity, all examples here use a $100,000 sales price. Monthly payments are for principal and interest only (taxes, insurance and condo/homeowner fees would increase your payment).

Adjustable-Rate Mortgage.

The interest rate is adjusted up or down periodically based on a financial market index (such as Treasury bills). Monthly payments start lower than for fixed-rate mortgages. The initial rate is set for a specified period — 1, 3, 5, 7, or 10 years — and then rates adjust on a schedule, say, annually. The adjustments generally are limited by annual caps and a life-of-the-loan cap.

Down Payment: $10,000
Mortgage Amount:< $90,000
Term of Loan: 30 years
Interest Rate: 7% (until first rate adjustment)
Monthly Payment: $599 (until first rate adjustment)

Fixed-Rate 30-Year Conventional Mortgage.

A fixed-rate conventional loan is made by a commercial lender for 30 years. Monthly payments (excluding taxes) remain unchanged for the life of the loan. Some lenders allow mortgages with as little as 5% down, but require private mortgage insurance for loans with less than 20% down.

Down Payment: $10,000
Mortgage Amount: $90,000
Term of Loan: 30 years
Interest Rate: 8 1/2%
Monthly Payment: $692

Fixed-Rate 15-Year Conventional Mortgage.

This is similar to the 30-year conventional mortgage, except the loan is repaid in half the time. Interest rates are typically lower than for a 30-year loan, and interest paid over the life of the loan is less, but the monthly payments are usually somewhat higher. Government-backed loans — VA and FHA — are also available in 15-year terms.

Down Payment: $10,000
Mortgage Amount: $90,000
Term of Loan: 15 years
Interest Rate: 8 1/4%
Monthly Payment: $873

Two-Step Loan.

This 30-year loan is a cross between the ARM and a conventional loan. The mortgage carries a fixed rate for 5, 7 or 10 years and then adjusts to market interest rates once for the remainder of the loan. The initial rate is generally lower than a fixed-rate conventional mortgage, but the second step of the two-step mortgage is often conditional on the lender’s approval.

Down Payment: $10,000
Mortgage Amount: $90,000
Term of Loan: 30 years
Interest Rate: 8 1/8% (for first 2 steps)
Monthly Payment: $668 (until adjustment)

Federal Housing Authority (FHA) Loan.

These are government-insured loans so homeowners can make a smaller down payment than on conventional loans. The limits on FHA loans are high enough to handle moderately priced homes in many parts of the country. FHA loans are assumable for future buyers who qualify.

Down Payment: $10,000
Mortgage Amount: $90,000
Term of Loan: 30 years
Interest Rate: 8 1/4%
Monthly Payment: $676

VA Loan.

These are loans for qualified veterans backed by the Department of Veterans Affairs with low or no down payment required. These mortgages are subject to the VA mortgage funding fee, depending on the size of the down payment. VA loans can be combined with second mortgages and are assumable to qualified buyers.

Down Payment: $10,000
Mortgage Amount: $100,000
Term of Loan: 30 years
Interest Rate: 8 1/4%
Monthly Payment: $751

Seller Financing.

Sellers may take back a loan against their equity in the property in the form of a first or second mortgage. One approach to owner financing is to use a balloon mortgage calculated and repaid for 5 or 7 years as a 30-year mortgage, but then the balance of the loan is due in a lump sum.

Down Payment: $15,000
Mortgage Amount: $85,000
Term of Loan: 5 years
Interest Rate: Negotiable
Monthly Payment: Depends on rate

Assumable Mortgage.

A buyer takes over the existing mortgage — usually FHA, VA or ARM — at its current interest rate, with the concurrence of the lender. An assumption may have a lower rate than those currently available, and taking over the mortgage may save on closing costs. The down payment makes up the difference between the sales price and the balance on the loan.

Down Payment: $30,000
Mortgage Amount: $70,000
Term of Loan: Time remaining on loan
Interest Rate: Same as seller had
Monthly Payment: Same as seller was paying

Wrap-Around Mortgage.

Here a new mortgage incorporates an older, assumable loan to help bridge the gap between the loan balance and home sales price. The interest rate is often below market, but higher than the rate the old mortgage carries. Payments are made to the new lender or the seller, who forwards part of the payment to the first lender. The term of the mortgage is the time remaining on the original loan.

Down Payment: $10,000
Mortgage Amount: $90,000
Term of Loan: Time remaining on original loan
Interest Rate: 9%
Monthly Payment: $724

Buy-Down Mortgage Plan.

The seller or a third party provides additional cash to the lender in exchange for a lower interest rate for the buyer. Approaches vary among permanent buy-downs, multi-year and graduated plans.

Down Payment: $10,000
Mortgage Amount: $90,000
Term of Loan: 30 years
Interest Rate: 6 1/2% (initial)
Monthly Payment: $568 (until subsidy diminishes or expires)

Call us, we can help get you started.

 

Categories: First Time Home Buyer, wilmington nc convention center, Wilmington NC homes, wilmington real estate stats

16 Things Every Home Buyer Should Know About Adjustable Rate Mortgages – But Shouldn’t Be Afraid To Ask

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When Wilmington NC  home buyers go shopping for the best Adjustable Rate Mortgage (ARM) they can find, these are the 16 essential things they should ask about:

Up/Down on Paper

  1. The initial interest rate or “qualifying” rate.
  2. The length of time the interest rate and monthly payment will remain the same as at the start. Also the length of time between rate and payment adjustments.
  3. The index to which the ARM is keyed (Treasury bills, etc.)
  4. The current index level.
  5. The margin percentage between the index and the mortgage interest rate.
  6. How the index and margin are combined to arrive at a loan interest rate (both initial and adjusted rates).
  7. The adjustment (if any) to be made in interest rate and monthly payment, if the index remains the same.
  8. Whether or not the loan has an interest rate cap (limit). If so,
    1. the limit to the increase in the interest rate at the time of each adjustment,
    2. whether or not there is a carryover to the next adjustment period of any increase in the index rate that goes over the specified limit, (that is, can increases be applied in subsequent years when the rate increase is below the cap), and
    3. whether or not a periodic rate cap applies to the first adjustment and/or rate decreases.
  9. Whether or not a life-of-the-loan interest rate cap is available. If so, the minimum and maximum rates.
  10. Whether or not a periodic payment cap is available. If so, ask about:
    1. the maximum monthly payment increase possible at any adjustment, and
    2. the payment cap, does it apply to the first payment adjustment?
  11. The initial annual percentage rate (APR) of the loan, which may fluctuate in later years.
  12. In case of negative amortization, how often the loan is recast to pay off the increase in principal. After recasting, the limit (if any) on the amount of increase in payment.
  13. Whether or not negative amortization may occur if an interest rate increase causes a monthly payment to accrue over the cap limitation. Whether or not the payment cap applies to any increase caused by periodic recasting of the loan because of negative amortization.
  14. Whether or not the loan can be assumed by a future buyer. If assumable,
    1. the qualifications involved, and
    2. whether or not the original interest and payment caps will hold. If not, the specifications for new caps.
  15. Whether or not the ARM can be converted to a fixed-rate loan at any time.
  16. Whether or not the loan has open-end credit.
  17. If you would like a further explanation of ARM features, give us a call or send an e-mail question. We’ll be glad to discuss this sometimes-complicated subject with you.

 

Categories: Adjustable Rate Mortgages, Wilmington NC homes, wilmington real estate stats, Wrightsville Beach NC


Kay Baker Associates | 1001 Military Cutoff | Ste 101 Wilmington, NC 28405 | kaybakerassociates@ec.rr.com | 910-202-3607 | Fax 910-338-2428

Copyright © 2017 Wilmington NC Real Estate Guide. All rights reserved. Disclaimer: All content on this blog is my own opinion and should not be treated as fact or relied upon when purchasing or selling real estate.