1. Lower Rate.

One method is to seek out a lower interest rate for the balance of $175,500. By lowering the interest rate to 7%, but maintaining the current payment schedule (20 more years of payments in the above example) your payment would drop to about $1,361 and the loan would still be retired at the original 30-year mark.

2. Longer Term.

Another way to lower your payment would be to prolong the length of the amortization. For instance, by getting a new 30-year mortgage for $175,500 at the 10-year mark, your payment would drop to $1,167 (at 7%).

3. Cash Out.

Some homeowners pull equity out of their properties for home improvement, vacation, college costs, big-ticket purchases or to consolidate debt. Especially when interest rates are rising or stable, cashing-out is often the primary reason for refinancing.

4. Change Loan Type.

Other folks refinance in order to change the type of loan they are paying off. Some homeowners grow uncomfortable with the variability of adjustable-rate mortgages and would rather have a fixed-rate loan. Others need to reduce monthly expenses and choose an adjustable-rate loan to lower their payment.

5. Shorter Term. The rates are still around 4%

Sharpen Your Pencils!
Determining how much you can afford to finance in today’s market requires careful consideration and a bit of math. If you are thinking about refinancing an existing mortgage or buying a home, use these charts to help you plan. Then call us, so we can answer your questions and help you take the next step!
Monthly Payment: How much can you afford?
Lenders will usually allow you to spend 28% of your total–or gross–monthly income to make mortgage payments of principal, interest, taxes and insurance. The table below shows how much 28% is at various income levels.
Annual Income	Gross Monthly Income	Affordable Monthly Payment**
$20,000	$1,667	$467
$25,000	$2,083	$583
$30,000	$2,500	$700
$35,000	$2,917	$817
$40,000	$3,333	$933
$45,000	$3,750	$1,050
$50,000	$4,167	$1,167
$60,000	$5,000	$1,400
$70,000	$5,833	$1,633
$80,000	$6,667	$1,867
$100,000*	$8,333	$2,333
*For incomes over $100,000, add together the two appropriate columns.
Loan Amount: How much can you plan to borrow?
Once you know how much you can afford monthly, use this table to estimate how much you can borrow. Add your down payment to get an approximate house-hunting price range.
Monthly Payment**	5%	7%	9%	11%
$467	86,995	70,194	58,040	49,038
$583	108,603	87,630	72,457	61,219
$700	130,399	105,216	86,998	73,505
$817	152,194	122,802	101,539	85,791
$933	173,803	140,237	115,956	97,971
$1,050	195,598	157,823	130,497	110,257
$1,167	217,393	175,409	145,038	122,543
$1,400	260,797	210,431	173,995	147,009
$1,633	304,201	245,453	202,953	171,476
$1,867	347,791	280,625	232,035	196,047
$2,333	434,599	350,668	289,951	244,980
**Principal and interest only; taxes, insurance and any homeowner fees not included. These will raise your monthly payment and reduce the amount of principal and interest and total loan amount you can afford. Loan amounts are based on a 30-year fixed-rate mortgage. For incomes over $100,000, add together the two loan amounts and add your down payment.

Yet another reason for refinancing is to shorten the term of your current mortgage. If your income has grown substantially and you’re happy living in the same home, you could reduce the length of your loan by simply refinancing to a shorter-term mortgage with a smaller balance but higher payment. Using the above example again, a $175,500 loan paid off in 15 years at 8% would cost you $1,677 each month (about $200 more than for the original loan), but the loan would be paid off relatively quickly–saving you thousands of dollars in interest payments.
Whatever you decide, be sure to weigh the costs of refinancing carefully. A lower monthly payment may help your cash flow, but is it going to cost you too much up-front to make sense? Be sure you’ll live in the home long enough to recoup the expenses associated with refinancing–points, closing costs and fees.

“Community leaders have been eager to keep the area in the race to develop new technologies and uses since the FCC chose the local television market as the first in the country to transition to digital TV.  New Hanover County and Wilmington are also noted in the FCC’s National Broadband plan as a model of the usability of the spectrum.

New Hanover County has provided network IP cameras, Wi-Fi routers, antennas and other hardware as well as technical installation of the new FCC approved radios.  New Hanover County, city of Wilmington and TVBS have been using white spaces for a number of business applications already, including water quality monitoring and security purposes.

Chaney says the county and city governments collaborated on a pilot project that provided Wi-Fi and video surveillance in the Creekwood housing development.  The county is also using white space to automate the collection of water quality data in environmentally sensitive areas that would have required trenching of wires.

Wilmington NC is getting  a Miracle Field for the new Miracle League.  Accessible Coastal Carolina Events Sports and Services (ACCESS) was started to bring the field to the area. “The overall mission of ACCESS is to not only provide an opportunity for those who have not yet had the chance to experience the power of play and the joy of sports but to also show the importance of inclusion within a community. Creating a place where people of all ages, races, and abilities can actively participate together, will naturally allow relationships to develop as people share interest. More importantly it is opening the door to a better world for everyone.” The Miracle League was started in the late 1990′s in Rockdale Youth Baseball program in Atlanta.  They recognized the need to include all children in a sport regardless of their abilities.  Hence the Miracle Field was started.  People of all abilities and ages could play baseball.  Eventually the fields were made to  have a rubber, non-latex surface that is helpful and safe for persons with any mobility difficulties.  The Wilmington area is excited to participate in such a wonderful project.  The fields will be built at Olson Fields off Murrayville Road. There will be playgrounds for all abilities and restrooms.  The project has raised 87.5% of it’s goal of 1.2 million dollars.  If you would like to donate in someones name as a gift for Christmas, what a great way to honor them.  The Miracle Field is truly a “miracle”  Please watch this video of the Wilmington Miracle Field.  For more information or to donate online, please visit www.miracleleaguewilm.org/

Click here to view the embedded video.

We would like to wish each and every one of you a Happy Thanksgiving.  No matter where you may be celebrating this day of thanks, may you be filled with gratitude and good feelings.  This time of year is a time to share your talents and good fortunes.  One of the best good fortunes for you to share is your time.  Our great city has plenty of volunteer opportunities to help those that are less fortunate.  The Wrightsville Beach Magazine has a list of organizations that could use your help.  Get involved, meet new people and share your enthusiasm for our hometown.  Enjoy family and friends and reach out to those who might not have the chance to do the same.  

For a list of opportunities please click the cover photo.

 10/27/2011

Well it is official.  Screen Gems Studio and Wilmington NC will be host to the filming of IRon Man III.  Welcome to our great town.  Enjoy.

So why is Gov. Perdue coming to Wilmington today to Screen Gems Studio to make an announcement?  We shall know at 2:30 pm.  North Carolina beat out Michigan in posssible places to film Iron Man 3.  Aaron Syrett, director of the N.C. Film Office sent out an email last night to members of the state film council about the visit.  The studio has made a call for crew members for another production, rumor has it that it is really for Iron Man 3.  More later after 2:30 today.  Cross those fingers and get ready to say “Welcome to Wilmington Iron Man III” we hope…..

Rumors abound.  According to the Latino Review, a website that reviews and researches films, director Shane Black  is scouting the Wilmington NC area to film Iron Man 3.  The previous versions have all been filmed in Los Angeles and the thought is that the director would like a change of scenery for the sequel.  Screen Gems Studio is home to many movies and television shows.  Currently “One Tree Hill” and “Eastbound and Down” are being filmed in the area.  Colin Firth and Emily Blunt will start filming in the area for ” Arthur Newman – Golf Pro” in October.  If the rumor is true Iron Man will be taking over 10 of Screen Gems sound stages and set designs are rumored to have already started.  Filming should start in June 2012 and the release should be May 3, 2013.  The budget for Iron Man 2 was $200 million and this film should have a similar budget.  We welcome you Shane Black, Robert Downey Jr.  and crew.  You will love Wilmington NC and the creative crew at Screen Gems Studio.  You will also love the people of Wilmington NC, who make the city we live in “perfect”.

If you see the area and want to look at real estate please feel free to search on www.cbbaker.com for virtual tours, videos, photos and more.

photo from movietrailers.com

Put Your Home’s Equity To Work

With Six Savvy Strategies

Do you have idle equity sitting in your home that could be building wealth instead? One of the great aspects of homeownership is that you increase your wealth every month by building equity in your home and reducing your tax bill at the same time.

After you’ve been in your home a few years, you may have some equity that you could put to work for you. Even if the property has appreciated by just a few percentage points per year, significant equity can build up fairly quickly. Just be sure you retain enough equity that you’ll be able to pay a real estate agent’s commission when you sell the home.

Home equity loans are the most common means of tapping a home’s value. In states where home equity loans are not allowed, however, you can still put your home’s value to work by refinancing it for more than you currently owe–a “cash out” refinancing.

The first way most homeowners think of using their equity is to pay off high-interest debt. That’s one popular option, but you could also invest that equity in other ways. Here are six more ways to put your equity to work for you.

1. Trade Up

Using your equity as a down payment for a larger home could make financial sense. If you’re in a $200,000 home now and it appreciates by 5% each year, your gain is $10,000 for the first year. In five years, that home would be worth $255,256. But in a $275,000 home, that same 5% growth would be $13,750 for the first year. After five years, the more-expensive home would be worth $350,977 — nearly $100,000 more than the less-expensive home.

Of course, you may not be able to count on 5% appreciation every year. It could be higher or lower, depending on the state of the economy and market conditions. Not to worry, though. Even 2% appreciation will still add up over time.

Using additional equity to trade up will allow you to put a significant amount of money down on your next home. That could allow you to own a home you never could afford before.

2. Downsize

Another way to use your equity is to scale down. With the recent changes in tax laws, homeowners may sell a home every two years and walk away with tax-free profits up to $250,000 (for singles) and $500,000 (for married couples). By scaling down, you can purchase a smaller, less-expensive primary dwelling, and use the extra cash for investments, debt reduction or even purchasing an investment property.

3. Second Home

The real estate market has been fueled during the past few years by retiring baby boomers purchasing second homes. Maybe now is the time to purchase that home on the beach, at the lake or in the mountains. We can refer you to a knowledgeable agent in a resort area to help you with this move.

If you know you’re retiring to a particular area in the next few years, study that market now. You may want to buy the home now while prices are still affordable. If you do, you could rent the home during the peak vacation season. Many second homeowners discover they can just about cover their annual property expenses by renting out during peak season.

4. Investment Property

While the stock market often bounces up and down, many investors feel comfortable with the security of real estate. Not everyone has extra money to play the stock market profitably, but landlords can enjoy income every month. The secret is selecting the right property and finding expert property management if you don’t want to manage the property yourself. We can help with both these issues.

Some buyers have found it beneficial to purchase a property in the area where their college-age children are going to school. Their child can help manage the units and share the housing with other students to defray costs. The young adults learn responsibility and property management skills, and you have a live-in manager to watch over your investment.

5. Shared Equity

Another way to put your idle equity to work is to lend it to an adult child as a down payment for his or her first home. Some parents maintain a co-ownership interest while the young adult makes the mortgage payments. At the time of the sale, the equity is then split between the two. This is called a shared-equity arrangement.

6. Remodel

If you really like where you’re living, but desire a few more amenities, consider taking cash out for remodeling or adding to your current home. The interest paid on some home equity loans is tax deductible, just as it is with your first trust. Give us a call to find out what financing options suit your situation best.

Call us, we are the experts with expert partners in mortgage and everything real estate related. 800-497-7325-3607 or kaybaker@ec.rr.com . Sign up for our newsletters and our weekly TGIF Scoop on everything Wilmington NC!

Wilmington NC makes the news again.  This time for being the #79th  most searched real estate market on Realtor.com website for September.  This is good news.  The market has been slowly picking up and the buyers are starting to look again.  With the interest rates below 4%, now more than ever is a great time to buy.  Realtor. com was one of the first real estate websites that the public could search all over the United States.  We have been with them for over 17 years.  It is a great tool to have to expose your properties to the public.  In addition to the regular service Realtor.com provides, we also “Showcase” our listings so that we can add more information, virtual tours  and photos to each or our listings.  We also have “Featured Homes” on Realtor.com.  When someone types in Wilmington NC in the search term, our listings are featured at the top and bottom of the screen in a revolving sequence.  We do get more public hits on the Featured Homes and think that this helps increase exposure on each home.  Being progressive and proactive are vital in this real estate market, and Kay Baker and Associates have always tried to stay above of the trends.

The survey is in and there are some low cost renovations that you can do to your home that will bring you more money back at the closing table.  Before you start,  go around your house and your yard and take pictures that you think would look good when the house is listed.  Take a good look at these pictures and you can pick out the things that need to be changed.  Like they say: a picture is worth a 1000 words.  You will see things that you walk by everyday and do not even catch your eye…. but they will catch a potential buyers eye.  The results are interesting and can help you prepare your home for sale.  We can help you with each of these steps.

The marketing company surveyed nearly 600 real estate professionals to discover which DIY home improvement projects give sellers the biggest return for their buck. Here are six projects under $1,000 (amounts are estimated) that made the list.

1. Cleaning and decluttering.Remove any personal items, unclutter countertops, organize closets and shelves, and make the home sparkling clean.
   • $290 Cost
   • $1,990 Return
2. Brightening.Clean all windows inside and out, replace old curtains, update lighting fixtures, and remove anything that blocks light from the windows.
   • $375 Cost
   •  $1,550 Return
3. Smart staging.Rearrange furniture, bring in new accessories and furnishings to enhance rooms, incorporate artwork, and play soft music in the background.
   • $550 Cost
   • $2,194 Return
4. Landscaping enhancements.Punch up the home’s curb appeal in the front and back yards by adding bark mulch, bushes, and flowers and ensuring current plants and grass are well-cared for and manicured.
   • $540 Cost
   • $1,932 return
5. Repairing electrical or plumbing.Fix leaks under the sinks, remove any mildew stains, and ensure all plumbing is in good working condition. Update the home’s electrical with new wiring for modern appliances, fix any lights or outlets that don’t work, and replace old plug points with new safety fixtures.
   • $535 Cost
   • $1,505 Return
6. Replacing or shampooing dirty carpets.Steam-clean carpets, replace any worn carpets, and repair any floor creaks.
   • $647 Cost
   • $1,739 Return

Realtor Magazine : Excerpted from HomeGain’s 2011 Home Sale Maximizer Survey: www.homesalemaximizer.com.

Let us know if you would like help getting your home ready for the market.  That is our expertise and we love “before and after” photos!  www.cbbaker.com for all your Wilmington NC real estate needs.

Realtor.com announced that Wilmington NC was the 69th most searched market for real estate.  Realtor.com has it’s own statistics for searches performed.  The median price of homes were 239,900 which is a bit lower than 2010 but still a healthy average compared to the national average of 189,900.  Inventory levels are down from 2010 which could be in part to all the foreclosures that flooded the market last year. 

Kay Baker & Associates uses Realtor.com in their marketing plans by  showcasing our listings and we have 12 featured home  spots that will showcase our homes when someone types in the search criteria of “Wilmington NC”.  We feel that this increases the exposure of our listings tremendously.  If you are thinking about selling your home, let us show you our aggressive marketing plan.  Search all the Wilmington NC real estate listings on realtor.com and on www.cbbaker.com

Studebaker John

The 16th annual Blues Festival is this weekend.  Everywhere around town, the Blues shall be heard… The kick off party is on the Henrietta III at 7:30pm Friday July 29.  There will be music on the dock by Rick Toby.  Catered heavy appetizer buffet, cash bar and a 2-hour sunset cruise along the historic Cape Fear River.  Tickets are available at Wilmingtontickets. Three different Blues Bands will perform on the cruise.  Post Cruise party at Rusty Nail.   For a full list of events and bands please visit www. capefearblues.org.  The weekend will be fun and eventful. Talent everywhere.

Studebaker John and the Hawks… listen here….

While you are in town, if you see real estate that interests you, let us know.  On your phone text 14059 to 44133 to search Wilmington NC real estate or go to www.cbbaker.com.  Have fun!