Diana's Neighborhood

Real Estate in New York & Connecticut – Won't you be my neighbor?

Rate Update…. Very Low!

 

Carey Lance Hollander
Retail Sales Manager
Guaranteed Home Mortgage Company
Phone: 914.424.5962
License: NMLS # 74044
chollander@ghmc.com
www.ghmc.com/chollander

 

 

 

 DOES PAYING POINTS MAKE SENSE?
Points are up-front fees paid to obtain a better interest rate on a loan. One point equals one percent of the loan amount. A lower interest rate may result in a lower monthly payment, but it is important to consider how long you intend to be in the loan, and to compare current rates to historical market trends.

If you take out a $300,000 mortgage and decide to pay one point, this translates into an up-front closing cost of $3,000. Paying a point up front saves $100 a month but it will take 30 months to recuperate the cost of that point. If you decide to refinance or sell the home before the 30-month mark, your money is lost. In this case, you would benefit financially by remaining in the home longer than the 30 months.

Rates run in cycles. When rates are at historical lows, it is sensible to pay points if you plan to live in the home for an extended period of time. It is unlikely that rates will go down; hence, there will be no need to refinance.

When rates are up, there is a strong likelihood that they will come down. This is no time to pay points. The chances of refinancing in the future are extremely high, and you will likely not be in the loan long enough to recuperate the cost of the points.

Mortgage Interest Rates*  CRAZY LOW!!!
Rates as of Saturday, 3rd December, 2011:

 

Term

Conforming

APR

Payment per
$1,000

Jumbo

APR

Payment per
$1,000

Arm Reset Term

30 Year Fixed Conventional

360

3.875%

3.909%

$4.70

4.375%

4.397%

$4.99

10/1 ARM

360

4.0%

3.782%

$4.77

4.0%

3.782%

$4.77

360

7/1 ARM

360

3.25%

3.338%

$4.35

3.25%

3.338%

$4.35

360

5/1 ARM

360

2.875%

3.222%

$4.15

2.875%

3.222%

$4.15

360

 


*Rates are subject to change due to market fluctuations and borrower’s eligibility. Payment amounts do not include amounts for taxes and insurance. Actual payments will be higher.

For professional use only. Not intended for consumer distribution.

Regarding the ARMs: Rates are up to $1,000,000 loan amounts. 20% down is the minimum downpayment required. Rates chance daily, not all borrowers will qualify. Equal Housing Lender/Direct Lender
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December 5, 2011 Posted by | Mortgage, Real Estate, Uncategorized | , , | Leave a comment

PMI Insurance is Tax Deductable

As you probably know, “piggy back” loans to avoid mortgage insurance are non existent and therefore homebuyers have no choice but to pay mortgage insurance when the down payment is less than 20%.  What you may not know is that PMI IS tax deductable (see article below) which makes it more palatable.  

 

   

  Carey Lance Hollander
Retail Sales Manager
Guaranteed Home Mortgage Company
Phone: 914.424.5962
License: 74044
chollander@ghmc.com
www.ghmc.com
 

 

     
 
       

 

 

Congress Makes PMI Tax Deductible
Millions of Borrowers Will Benefit

The federal government’s Private Mortgage Insurance legislation is great news for the real estate industry! Enacted on January 1st, 2007, the bill makes Private Mortgage Insurance (PMI) tax deductible for borrowers whose personal adjusted gross income is $100,000 or less. For millions of home buyers, the bill creates an amazing opportunity to finance a more expensive home or potentially obtain a lower payment for the same-priced home, while reducing annual income taxes by hundreds of dollars.

What is PMI?
Designed to protect lenders from defaults and foreclosures, Private Mortgage Insurance is required for loans exceeding 80% of the property’s value or sale price. Prior to the legislation, PMI was generally viewed with contempt by home buyers because of its perceived high cost and the fact that it was not tax deductible. For many borrowers, PMI was the only means available for financing their mortgage.

It wasn’t until the 1990s, when lenders began allowing “piggyback” financing, that homeowners and home buyers had an opportunity to finance a home without PMI. Under this scenario, buyers would take out two loans to cover the total amount borrowed. The first mortgage accounted for 80% or less of the purchase price or appraised value of the home; and the second mortgage, or “piggyback”, covered the remaining amount required to fund the transaction.

Reconsidering PMI
Now, thanks to Congress, potential borrowers may want to reconsider their aversion to PMI. After all, PMI makes it easier for some borrowers to qualify for a loan. Consumers should be aware that when the primary loan is accompanied by a Home Equity Line of Credit (HELOC), the approval of the first loan is contingent upon the approval of the second. In most cases, the approval requirements for the second loan are more stringent than those for the first. Alleviating this obstacle may enable buyers to consider a more expensive home or the purchase of preferred upgrades today rather than years from now.

It’s also important to remember that PMI doesn’t last forever. If a home appreciates at a rate of 4% annually, borrowers will be in a position to remove PMI within four years, resulting in an automatic reduction in the mortgage payment.

What to Do Now
Whether consumers are considering purchasing a new home or restructuring their finances, the first thing they should do is call a mortgage professional. There is a wide variety of options to consider, beyond those that have been presented here, and a mortgage professional will help them to determine which scenario best fits their needs.

If you would like to discuss how your clients can take advantage of the benefits of PMI, please call me! I would welcome the opportunity to speak with you.

October 9, 2011 Posted by | Mortgage, Real Estate, Uncategorized | , , , | Leave a comment

Delaying In Getting A Mortgage Could Cost You More

C21 Agents rock
logo

ATTENTION

 

HOME BUYERS

  IT COULD COST YOU MORE TO DELAY HOME BUYING
Mortgage Rates vs. Price Reduction

piggy bank

Everyone wants to get the best deal when buying a home. However, for buyers who are waiting to see if prices will come down a little more, the wait may cost them.

Here’s why:

Let’s say a homebuyer wants to buy a home that is listed for $300,000, and let’s say mortgage rates are at 5.25%.  But the buyer doesn’t want to pay $300,000, so he delays making an offer until the home is reduced by $10,000. 

Let’s now say that, while the buyer was waiting for the price to come down, mortgage rates rose by only .75%.  And let’s say he finances 90% of the $290,000 purchase price.  Instead of saving $10,000, he will end up paying over $35,000 MORE in total payments over a 30-year term than if he had paid $300,000 at a 5.25% interest rate.

Of course, this is just an example.  But the point is, mortgage rates are just as important as home prices… and right now they are BOTH incredibly low.  This is a rare situation, and one that is not likely to last, so if you are in a position to buy, the time is now. 

About the author:  Carey Hollander is a Retail Sales Manager at Guaranteed Home Mortgage Company Inc, a preferred lender of Century 21 V.J.F. Realty Inc.  Visit their website for more information or for a loan application.  Or, if you have any mortgage questions, call Carey directly at (914) 424-5962 for fast answers!

Carey Lance Hollander

Retail Sales Manager

GHMC

Cell:  (914) 424-5962

Office: (914) 696-3400 x301

Email: chollander@ghmc.com

Web: www.ghmc.com/chollander

September 23, 2011 Posted by | Buyers, Mortgage, Real Estate, Uncategorized | , , , | Leave a comment

Do’s & Don’ts During the Process of Your Home Loan

Here is an e-mail with information of Do’s and Don’ts During the Process of Your Home Loan

 

Dear Diana,

 

Do you want a hassle free loan process?  Here’s some Do’s and Don’ts to share with your homebuyers.

 

During the process of your loan request, we encourage you to follow these suggestions until all loan proceeds have been disbursed by the Lender.  The Loan is officially completed once all monies have been disbursed.  

 

MAKE SURE YOU DO…

Keep paying your bills on time including any mortgage, car, credit

cards, etc.

 

Inform us in advance of any employment or income change.

 

Keep copies of all paychecks/stubs and bank statements you receive.

 

Call us anytime if you are unclear or have a question about your loan.

 

 

MAKE SURE YOU DON’T…

Change your employment status without notifying us first.

Apply for new credit or access credit lines

Start significant home improvements on your home (if refinancing)

Co-Sign any loans until finished with this transaction.

Make large purchases such as real estate, cars, or furniture

 

 

The above information is provided for informational purposes only. Nothing contained herein should be construed as legal advice. Should you have any questions regarding your legal obligations during the loan process, please consult legal counsel.

 

Carey Lance Hollander, NMLS #74044

108 Corporate Park Dr., Ste 301, White Plains, NY 10604

914-696-3400 Office, 914.424.5962 Cell

Equal Housing Lender/Licensed Mortgage Banker, NMLS# 1615/NYS Banking Dept.

 

May 7, 2011 Posted by | Home, Mortgage | , , | Leave a comment

Obama Promises More Low Cost Mortgages

I received some positive news today via e-mail.  An article written in “Daily Real Estate News” through Realtor.org

obama

Obama Promises More Low-Cost Mortgages…

President Barack Obama promised Saturday to reduce mortgage costs as a key part of his plan to improve the economy.

Analysts applauded the move, saying that making low-cost mortgages widely available could stabilize housing markets and jump start new home construction.

Beyond that, observers say aid for the troubled housing market will help blunt the anger many Americans feel over the financial bailout as the executives of firms that received billions take bonuses while average people lose their homes.

Source: Reuters News, Mark Felsenthal (01/31/2009)

Any positive news makes me happy for both my buyers and sellers.  My buyerswill be able to possibly take advantage of these historically low interest rates and sellers may see more activity and possibly a SOLD sign in front of their home!

keys-neoliminal                                                                              neoliminal – Flickr.com

February 2, 2009 Posted by | Buyers, Economy, Mortgage, President Obama, Sellers, Uncategorized | , , , , , , , , , | Leave a comment

Relaxing at Home

dutch-colonial-ikkoskinen                                             ikkoskinen – Flickr.com

As I sit here in my den by the fireplace, writing another post for my Blog – which is turning out to be one of my favorite daily routines! I can’t help but think about all the comforts of a HOME.  Being able to relax and enjoy homeownership is FABULOUS!

                                                      *clairity* – Flickr.comcome-by-the-fire-clairity-w-2-stars-beg-and-end

During the winter especially, a HOME gives you warmth – and invites your family and friends during the Holidays. 

dinning

A HOME is where memories are made and never forgotten.  I still dream of my childhood HOME – over and over.  I have friends and family that say the same – many of their dreams are also of their HOME, where they lived when they were a child.

                                                          alicepopkorn – Flickr.comdream-alicepopkorn

If taking steps toward HOMEOWNERSHIP is one of your NEW YEAR RESOLUTIONS – talking to a mortgage broker is an important first step!  I highly recommend Anthony Frascone  – cell: 203-648-6713.  He is licensed in New York and Connecticut and has similar family and work ethics as I do.  GOOD LUCK and HAPPY NEW YEAR!

January 4, 2009 Posted by | Blogging, Buyers, Connecticut, Finance, Home, Mortgage, NY, Uncategorized, Winter | , , , , , , , , , , , , , , , , , , , | Leave a comment

My Holiday Wish to You

My Holiday Wish to You and to All is that you and your loved ones be Healthy, Safe, Together, Happy and Financially Stable

heart-in-hands-aussiegallaussiegall – Flickr.com

Also, if your a BUYER, looking to purchase a HOME, my wish is that I help you find it!

gift-house-h-dickins1H Dickins – Flickr.com

Interest Rates are DOWN AGAIN!!  There are lots of homes to view and lots of negotiable sellers!

December 20, 2008 Posted by | Buyers, Christmas, Finance, First Time Home Buyers, Home, Mortgage, Real Estate, Uncategorized, Winter | , , , , , , | Leave a comment

2009 Could be the Best Year for Home Buyers

FrontDoor.com has a fantastic article about how 2009 could be the best year for home buyers!

dollar1

Some of the items mentioned is the home buyers tax credit, the increase of inventory of homes on the market and the decreasing interest rates.  It reads that interest rates are in the high 5’s and that there may be more reductions.  Well, there was a decrease in interest rates.  Just today, Carey Hollander with Patriot Home Funding said interest rates for a 30 fixed mortgage are in the LOW 5’s for someone with good credit.  For more info on Patriot Home Funding <CLICK>

arrow

To read the entire article “The Last Year for Best Buying Opportunities – Considering buying a home? Take advantage of low prices and interest rates in 2009.” <CLICK HERE>

Happy House Hunting!

house-2

December 13, 2008 Posted by | Buyers, First Time Home Buyers, Home, Money, Mortgage, Real Estate, Realtor, Uncategorized | , , , , , , , , , | Leave a comment

Get Pre-Approved First – Then Go House Hunting!

picture-1842

Most buyers tend to start their house hunting on-line through sites like REALTOR.COM, TRULIAand many other sites.  Then, they may contact a Realtor, possibly the listing agent to an interesting home they’ve spotted on line.

The next thing they know, they’re scheduling an appointment to view homes and one day, it happens…

They find “the one” – their dream home,  their casa or castle.  They begin to picture themselves, their furniture and belongings in the home.  They may even start picking out paint colors and think of where to place the furniture – getting more and more wrapped up in becoming a homeowner.

Then, they contact a mortgage broker – since their offer, after negotiating, was accepted – Yeah! Or maybe not.  What if that house’s monthly payment isn’t affordable – what if their credit scores have changed – what if they need a bigger down payment?  These are all questions that could sometimes be answered with a simple phone call.

With all the changes in the Mortgage Industry, contacting a mortgage broker or lender is crucial.  It will save you much dissappointment and give you peace of mind while shopping for your first or next home.

picture-233

 

Call me for a list of fantastic people to assist you in any and all questions that you may have.  For now, check out DML Mortgage’s Link.  Paula Ventura or David Litchman are great!

April 17, 2008 Posted by | Buyers, Mortgage | , , , , , , , | Leave a comment