INVEST YOUR RENT: Why Pay Your Landlord’s Mortgage?

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The only one who benefits from a rent check is the landlord. Renters never see that money again, while homeowners usually profit when they sell. In addition, renters can’t use any of their rent payment as a tax deduction, like homeowners can. If you or someone you know is renting, it’s time to put that rent check to better use!e mortgage-interest deduction is probably the best financial argument for buying rather than renting. Consider this example:If you can afford a mortgage payment of $1,000 (principal and interest only), you can buy a house for $151,426 if you put 10% down on a 30-year mortgage at 8% interest ( current rate for great credit is 4%) . If your payments started in January, you would pay $10,862 in interest for the first year in the home. That entire amount is deductible on your federal income tax return! Assuming you are in the 27.5% tax bracket, you would save $2,989 in taxes, or $249 per month. So your $1,000 payment is really only $751 when you factor in the homeowner’s tax advantage.

Can A Renter Really Afford To Buy?

shells5The real question is whether renters can afford not to buy. The tax savings alone make the purchase of a home a wise financial decision. But let’s go a step further.

Using the same example, a 10% down payment would create an immediate equity of $15,142. Assuming the $151,426 house grows in value by just 3% a year, in five years it would be worth $175,544. The original loan amount would then be down to $129,565, yielding an equity of $45,980. In addition, remember the nearly $3,000 tax savings every year. The total value of your equity and tax savings would be almost $61,000 after five years.

Pick A Loan

To take advantage of the financial benefits of homeownership, renters must first find out how much buying power they have. We can help. Call us for information about the whole range of mortgage options now available, including low- and no-down-payment loans, and programs that allow buyers wrap home-improvement costs and closing costs into the mortgage.

Plan Ahead

Although some lenders allow buyers to use up to 41% of monthly income to purchase a house, beware of becoming “house rich and cash poor.” Be sure to budget for homeownership costs beyond the mortgage, including expenses for:

moving
decorating and furnishing
homeowners insurance
property taxes
homeowners association fees (if any)
utilities-power, water, sewer, cable, trash pick-up
yard tools, supplies and general upkeep
home repairs, supplies, cleaning and upgrades.

Today, homeownership is a wonderful dream-come-true for more people than ever before. Let us help turn those dreams into a home to be proud of.

Check out www.cbbaker.com for more information and helpful tips.  kaybakerassociates@ec.rr.com

Categories: Buying Wilmington NC real estate, mortgage interest deductions, tax advantage, tax advantages to buying real estate, tax exemptions, why pay your landlords mortgage, Wilmington NC Neighborhoods, Wilmington NC real esatate

Want To Save Big Dollars? Pay Your Mortgage Bi-Weekly

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river2We get it. No one really enjoys making a mortgage payment each month. But here’s a secret: You can shorten the length of your mortgage loan without refinancing your loan to a shorter term.

You simply have to make bi-weekly payments.

Here’s how this works: Normally, you’ll make 12 mortgage payments a year, one each month. If you owe $1,000 on your mortgage each month, you’ll make 12 mortgage payments for a total of $12,000 a year. But if you split your payment into bi-weekly payments, you’ll pay $500 every two weeks.

This pays off in a big way: Because there are 52 weeks in a year, you’ll make 26 bi-weekly payments. That is equal to making 13 monthly payments in a year. That’s right, with the bi-weekly mortgage payment, you’d make one extra mortgage payment each year than you would when paying 12 standard monthly payments.

Bi-weekly payments reduce the payoff time of your mortgage loan. The number of months you chop off your mortgage varies depending on the size, interest rate and length of your loan. If you are paying off a 30-year, fixed-rate mortgage loan of $180,000 with an interest rate of 4%, you’ll pay off your loan in 25 years and 11 months, eliminating four years and one month of payments. That means you’ll also save more than $20,000 in interest during the life of your loan.

Those are some compelling reasons to consider a bi-weekly payment plan. Call us today if you are interested. We’ll walk you through the process and help you make the right decision for your financial situation.

Categories: Mortgage, Mortgage 101, Mortgage choice, Mortgage ideas, Mortgage options, Mortgage points, mortgage rates, Mortgages, MPP mortgage, Uncategorized, Wilmington NC Neighborhoods

How to Win the Mortgage Game When Relocating

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lotus_bud_free_photo-690x457www.cbbaker.com

The single smartest move you can make is to put off house hunting until you have a firm idea of your buying power. If you are pre-approved for a loan, you can save considerable time house hunting and mortgage shopping.

A pre-approved mortgage loan is an excellent guideline to help relocating home buyers know how much home they can afford. For the seller, pre-approval is proof that the buyer’s lender feels confident a loan commitment would not be a problem if all the financial documentation were in order.

Pre-Approval Benefits:

  • Streamlines house hunting.
      A pre-approval identifies how much money the transferee can obtain, so precious time isn’t wasted looking at too-costly homes.
  • Offers peace of mind.
      You know for sure how much home you can afford, and there is little chance a lender will not make the requested commitment.
  • Prevents “house poor” homeowners.
      Pre-approval reduces the possibility of you becoming overextended and unable to meet payments later on.
  • Boosts bargaining power.
      Pre-approved buyers tend to be in an advantageous position when bidding against other buyers, as sellers like knowing your loan is guaranteed.
  • Pinpoints best mortgage option.
    The pre-approval process helps you identify ahead of time which type of mortgage best meets your personal needs.

Before you jump into planning your move, there are some terrific services we offer to relocating families moving into or out of our area. Let us help you take advantage of them. Send us an e-mail or give us a call. 910-202-3607 or kaybakerassociates@ec.rr.com

Categories: Pre-Approved Mortgage, Uncategorized, wilmington nc real estate, Wrightsville Beach NC

LOOKING AHEAD | Rising Rates? Who Knows? For Now They’re Still Affordably Low

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 www.WilmingtonNC-realestate.com or www.cbbaker.com

river2It’s easy—when you’re ready to buy a home and apply for a mortgage loan—to become obsessed with interest rates. How high will the average interest rate on a 30-year fixed-rate mortgage loan rise in 2016? How about on a 15-year loan?

The truth is, no one knows what interest rates will do in 2016.

This isn’t unusual. No one knew what rates would do last year, either. Remember the predictions that mortgage interest rates would soar in 2015? Those predictions turned out to be incorrect. In the fourth quarter of 2015, the nationwide average interest rate on a 30-year fixed-rate mortgage was still under 4%. And the average rates on 15-year fixed-rate mortgages were under 3.5%.

There’s no guarantee that rates won’t rise throughout 2016. But this is important to remember: As 2016 kicked off a new year, average interest rates were still near historic lows. So even if rates do rise this year, they’ll have to jump significantly not to be nicely affordable by historic standards.

Outlook: Small changes in interest rates won’t impact your ability to afford a mortgage by much. If you take out a $150,000 30-year fixed-rate loan at 3.8%, your monthly payment—not including taxes and insurance—will be around $700. If the rate on that same loan increased to 4.1%, your monthly payment—again excluding insurance and taxes—would rise to $724. That’s a difference of about $24 a month or about $288 a year.

The message here? Yes, it’s better to buy while interest rates are low. But don’t let an obsession with rates keep you from pulling the trigger on your dream home this year. The odds are high that mortgage rates throughout 2016 will remain at attractive and affordable levels.

Categories: 2016 Interest Rates, Looking Ahead 2016, mortgage rates, Uncategorized

LOWER RATE: Seven Smart Ways To Reduce Your Mortgage Rate

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Predicting interest rates in today’s economy is at least as hard as winning in Las Vegas. But even if rates are on the rise, there are a number of options you can exercise to get the lowest rate possible on your home loan. Consider the following strategies.

1. Consider An Adjustable Rate Mortgage (ARM)

{short description of image}Even though the rate on your loan may fluctuate, an ARM will allow you to enjoy a lower monthly payment at the outset. Traditional ARMs adjust every year, but ARMs now exist to suit just about everyone with 3- and 5-year adjustment periods, even a single adjustment at the 7-year mark.

2. Float Down

Financial products introduced recently will lower your rate if market rates fall, but won’t raise it if rates creep up again.

3. Quick Close

If you can settle on your loan quickly (say, 30 days or less), some lenders will agree to shave percentage points off your rate.

4. Lock In

If you fear rates are going to rise, lock in early before they do. Some lenders allow a float-down option, but with an up-front fee.

5. Pay Points

If you’re willing to pay some interest up front (known as points), you can get a fixed-rate mortgage with a lower interest rate.

6. Stay Awhile

If you agree to keep the same loan for five years or longer, some lenders will cut their interest rate. If you do move or refinance before the agreed-upon deadline, you may have to pay a penalty of about 1% of your loan.

7. Use Good Credit To Negotiate

Do you have A-1 credit? If so, you’re a hot commodity for lenders. They may even be willing to reduce closing costs to get your business. If interest rates are firm, ask for a reduction in fees for document preparation, processing, courier services, copying, underwriting, appraisal or application. Other reductions might include: fewer or no points, lender’s attorney’s fee, commission rate (for mortgage brokers) and the credit check fee. On an adjustable rate mortgage, ask for a lower starting rate.With so many options available, you may need a professional to help you choose the best program for your situation. Call us today to see what’s available in your area.

 

Categories: Lower your Mortgage, Mortgage, Mortgage 101

Search for Foreclosures in Wilmington NC | Real Estate

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Welcome to our Free Wilmington NC Foreclosure Site.

These prices won’t last for long!

Foreclosure, short sale closeouts.

Many desirable properties sell within 48-72 hours of availability.

Be the first to know about these homes!

Foreclosures from $50,000 – $175,000  Click Here…

Foreclosures from $175,000 – $300,000 Click Here…

Foreclosures from $300,000 Click Here…

Click Here to search on your own

We will provide you with free daily updates on Foreclosures and Short Sales in the Wilmington area.  Save money and enjoy quick equity when you purchase a foreclosed  or a short -sale home.  You provide the price and what you are looking for, and we will put you on our automatic  listing alert service directly from our MLS system, so that only the homes that match your criteria will be emailed to you.  At your convenience look through the listings  and if one catches your eye, call us and we will make arrangements with the bank to get more information about the home. It’s just that simple.
Just fill out the email request below and leave the rest to us.

Our speciality in todays market is short sales, foreclosures and Bank owned property.  We are knowledgeable and up to date on how to get you the very best price. Just have questions about the real estate market, email us anytime and we will be glad to answer your questions or concerns.

This service is available for New Hanover County, Brunswick County & Pender County. Wilmington NC Real Estate searches can be done on our websitewww.cbbaker.com

 

Categories: Search foreclosures Wilmington NC, Short Sales Wilmington NC, waterfront wrightsville beach, wilmington beach homes, wilmington nc foreclosures, wilmington nc real estate

Do You Know Where Your Mortgage Money Comes From? | Wilmington NC real estate

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Mortgage companies and banks are working overtime these days processing new mortgages – which raises an interesting question: Will they ever run out of money to lend?

The chances of that happening are virtually nil, thanks to a highly complex investment market for mortgages that has grown immensely since the 1970s. The key players in this game are “Fannie Mae” (Federal National Mortgage Association), “Ginnie Mae” (Government National Mortgage Association), and “Freddie Mac” (Federal Home Loan Mortgage Corp.). These agencies, along with several private companies, turn homeowners’ mortgages into investment vehicles for individuals, pension funds, insurance companies and other large institutions. Altogether, these investment groups make up the bulk of what is known as the “secondary market.”

When a bank or mortgage company writes a mortgage, the loan is lumped with other mortgages in a bundle (or “pool”) that is often sold to one of the agencies. With the sale of the mortgage, the bank or mortgage company again has money to lend to another home buyer.

Fannie Mae, Ginnie Mae, and Freddie Mac differ as to the type of mortgage bundle they buy and in the type of investment vehicle they use to attract investors. But the process they use is the same: Assembling large packages of mortgages and issuing securities backed by the mortgages.

While the original lending bank may no longer hold the mortgage it gave to a home buyer, it still services the loan. That means collecting the monthly payments, keeping escrow accounts to pay for insurance and property taxes, and – through the agencies or companies that issued mortgage-backed securities – paying investors.  Coldwell Banker Sea Coast Advantage is a full service real estate company with in house mortgage brokers from Alpha Mortgage.  Contact  us about all your Wilmington NC real estate needs.  Visit www.cbbaker.com to search or catch us on mobile at mobile.cbbaker.com

 

Categories: Financing a Home Purchase in Wilmington NC, Uncategorized, wilmington nc, wilmington nc convention center, wilmington nc real estate, wilmington nc weekly events

New Mortgage Rules July 21 | Wilmington NC real estate

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More Credit Score and Credit Report Transparency | Mortgage Match News.

 

According to Mortgage Match new rules will make it mandatory for Mortgage Lenders to give mortgage applicants credit scores and credit report factors used during the loan application process.  If a Mortgage Lender quotes an applicant an interest rate and points that the loan will cost and there is a difference between interest rate and costs quoted to other applicants the loan officers will be required by Federal law as of July 21 to:

“–Tell you that you received a less favorable offer because of negative information in your credit bureau files;

 

–Provide you the actual credit scores used for your rate quote;

–Disclose the name and contact information of the credit reporting company that supplied the scores that led to your less favorable quote;

–Provide consumer education materials explaining credit scores, how they are used, and how your own score ranks against other applicants, plus the credit file factors that may have depressed your score. For example, if maxed-out credit cards and late payments are in your files, they could play significant roles in lowering your credit scores” per Mortgage Match.

The applicants will be able to have access to their credit report and the whole loan application process will become more transparent for the applicant.  Consumer education materials will be available for the applicant, so they can see why they were turned down, or received a higher interest rate.  They will have the right to obtain a  free credit report if turned down for the loan.

Categories: wilmington nc, Wrightsville Beach NC

Great Reasons to Buy a Vacation Home | Wilmington NC real estate

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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.

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

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 in Wilmington NC 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 Wilmington NC  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.

Here are some of the current Wilmington NC real waterfront/waterview real estate  in our area.

Priced from 100,000 – 200,000  Click here

Priced from 200,000- 400,000  Click here

Priced from 400,00 -600,000  Click here

Priced from 600,000 – Click here

To search all properties please visit www.cbbaker.com

Categories: azalea festival, Buying Wilmington NC real estate, certified distressed property expert, Economy, Figure Eight Island, Financing a Home Purchase in Wilmington NC, Landfall, Porters Neck Plantation, QR codes real estate, Uncategorized, wilmington nc, wilmington nc convention center, Wilmington NC Market Statistics, Wilmington NC Neighborhoods, wilmington nc real estate

Waiting for Mortgage Rates to go lower? Wilmington NC real estate

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Everyone wants to get the lowest mortgage interest rate when shopping for a Wilmington NC home. The rates have been at high 3’s and low 4’s the last couple of months. Freddie Mac just announced this week after it’s Primary Mortgage Market Survey that the rates for fixed and adjustable have risen again for the third straight week. 30 year rates hover around 4.46% up last week from 4.40%. It is still a great time to purchase a home. The housing prices are at a low, coupled with rates under 5%, it is a win win situation. To search all Wilmington NC real estate, please visit www.cbbaker.com. We have lenders that can give you a current quote and do a pre-qualification to get you started.

Categories: Managing your debt, New Hanover county shcools, private schools in wilmington nc, Wilmington NC Market Statistics, Wilmington NC Neighborhoods, wilmington nc real estate, Wilmington nc schools, wilmington nc weekly events


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.