Lancaster Pa Real Estate-Lower Your FHA Mortgage

Most FHA loans have monthly mortgage insurance required that must stay in force until the unpaid balance is reduced to 78% of the original sales price.  It would take about 10.5 to 12.7 years of normal amortization for loans with rates of 5% to 7% to reach that level.

As an example, a $175,000 home with a 5% mortgage for 30 years would have monthly mortgage premium of $163.46.  This is eliminated when the unpaid balance reaches $136,500 which is 78% of $175,000.  It can do that with normal amortization which would take about 10.7 years.

A faster way to reach that target balance would be to pre-pay the mortgage by making regular additional principal contributions or single lump sums.  In the example used above, if a person made an additional $100 principal contribution with each payment, the 78% level would be reached in 7 years 8 months compared to the 10.55 with normal amortization.

If a person would increase their principal contribution by a little less that $300 a month, the need for the MIP would be eliminated at the end of five years which is the minimum amount of time it must stay in place for most FHA loans.

The benefits of making additional principal contributions will be to build equity faster, lower overall interest that you’ll pay and shorten the time that you’ll be required to pay the costly mortgage insurance.  It will be necessary for the borrower to notify FHA when the target date has been reached if accelerating the amortization.

If you’re interested in developing a strategy to shorten the time your MIP is required on your loan, I can provide this type of analysis for you at no charge or obligation.

Lancaster Pa Home Inventory

Recently, a homeowner had a burglary and part of the insurance claim was denied because they didn’t have proof of purchase or a current inventory of their personal belongings.  This is something that could happen to anyone.  Even if you had an inventory but it was several years old, it could cost you money.

Some lancaster pa homeowners who have placed an insurance claim for losses say that they realized something was missing months after they had filed.  The inventory can actually serve as a guide to make sure you get compensated for all of your loss.

The best proof of purchase is to have a receipt for the item.  The reality of the situation is that most people don’t keep receipts.  The next best item is to have an inventory and the more details like pictures, the better.

Contact me for a Home Inventory.  Once you get it completed, put it somewhere safe so you’ll have it when you need it.  Saving it in the “Cloud” like  Microsoft Office Live is convenient because you can acess it from any computer with Internet access.

Deadline Quickly Approaching

Besides the obvious Federal Income Tax deadline which is April 18th this year, the deadline for individuals who can qualify for the Homebuyers Tax Credit is quickly approaching – April 30, 2011.

The extension was granted for members of the military, Intelligence and Foreign Service who have served outside of the U.S. for at least 90 days between January 1, 2009 and May 1, 2010.  The sales contract must be signed by all parties by April 30, 2011 and closed by June 30, 2011.

Qualifying taxpayers may be eligible for either the first-time credit of $8,000 or the current homeowner credit of $6,500.  To get additional information from IRS.gov, click here.

This is a wonderful opportunity for a person to have a home of their own, to raise their family, share with their friends and feel safe and secure.  We’re in a market that is ripe with advantages for buyers who can afford it.  Prices have come down considerably in the last two to three years.  Interest rates are at an almost all-time low but are expected to rise soon.  The selection of lancaster pa homes is good which allows buyers to find the home that meets their needs.

A qualifying veteran with eligibility could get into a home with no down payment, no closing costs if paid by the seller and the tax credit.  These tax credits are refundable which means that any amount that isn’t used to offset tax liability will be refunded to the taxpayer in a check.  You’re practically being paid to buy a home.

There probably will never be this combination of advantages available for lancaster pa buyers who qualify.  Don’t miss this opportunity.  You owe it to yourself and your family to see that it may actually cost you less to own than to rent and what it will take to get into a home.

To find out more about all things lancaster pa real estate, visit the lancaster pa real estate website.

Waiting To Buy Lancaster Pa Real Estate May Cost You BIG MONEY

If you haven’t heard by now, FHA is increasing the annual Mortgage Insurance Premium again by .25% on April 18, 2011.  Payments will be higher even if the interest rates remain the same.

Lancaster Pa real estate Buyers who are ready to take action can still lock in the lower MIP.  If they have a contract signed by all parties and get a FHA case number issued prior to 4/18/11, the lower MIP rate will apply.

For a $175,000 lancaster pa home at 5% interest, the new MIP will mean the buyer will pay $35 more to live in the same home.  If you don’t have to pay more, why would you?

Another possibility is that if interest rates go up .5% by the same effective date, you could pay $88 more to live in the same home.  What would you spend $88.36 on if you don’t have to make a larger payment?

April 18th is a Monday this year, so you’ll probably need to get your lancaster pa real estate contract completed by the previous Friday at the latest to give your loan officer an opportunity to order the case number.  If you don’t have a loan officer, your real estate professional can recommend a reliable one.  Making good decisions will improve your entire homeowner experience and save you money.

For more information on everything lancaster pa real estate visit the lancaster pa real estate website.

Mortgage Myths – Lancaster Pa Real Estate

• “It’s impossible to get low down payment loans in lancaster pa.” - UNTRUE!
  FHA down payments are only 3.5% and VA is 0%.  In some areas, there may some 100% USDA loans available.
• “It takes perfect credit to get a loan.” - UNTRUE!
  There is a relationship of better rates to better credit but many issues on a credit report may be explained.  The way to know for sure is to speak to a reliable lender.
  
• “If I’ve had a bankruptcy or foreclosure in lancaster Pennsylvania, I can’t qualify.” - UNTRUE!
  Credit history following a short sale or foreclosure is very important and there can be extenuating circumstances.  It only takes a few moments with a reliable lending professional to find out if your individual situation will allow you to qualify.
• “Getting pre-approved is expensive.” - UNTRUE!
  Usually, the only expense to getting pre-approved is the cost of the credit report which could be around $35.  The advantage is that you will know that you qualify for a particular mortgage amount.
• “I should wait to qualify until I find a home.” - UNTRUE!
  The best interest rates are only available for the highest credit scores.  It can take time to qualify for a mortgage especially if there are issues that need to be corrected.  It is to your advantage to start the qualifying process early in your home search.
• “All lenders are the same.” - UNTRUE!
  Reliable lending professionals will explain the entire process before collecting fees, quote fees up-front, have competitive products, do what is necessary to get the loan approved and close at the locked rate and terms.  Ask for recommendations from recent borrowers.
• “Adjustable rate mortgages are more expensive than fixed rate mortgages.” - UNTRUE!
  Adjustable rate mortgages can be less expensive than fixed rates if the buyers’ circumstances warrant it.  There are many variables and you need to be aware of them before deciding which type of loan to finance your purchase; the ARM may provide the cheapest cost of housing.

Buyers and Sellers need solid information to make good decisions.  The agent who represents you in the sales may be the BEST recommendation for a reliable lender.  The mortgage plays an enormous role in determining the overall cost of housing and you need solid information to make good decisions.

For more information on buying or selling a home in lancaster pa visit the lancaster pa real estate website.

Penn Manor GOP endorses candidates for primary

Penn Manor GOP endorses candidates for primary.

Lancaster Pa Realtor Brandon Clark Makes A Difference – Lancaster Pa Real Estate

For Immediate Release

For More information Contact, Brandon Clark, Realtor, Gateway Realty Inc., brandon@lancasternewhome.com
717-560-5500 ext.544 or 717-682-7353

LancasterNewHome.com Makes a Difference

March 2, 2011

In a market where 92% of buyers finance their purchase and tight credit requirements restrict some purchasers, Brandon Clark at Gateway Realty in Lancaster, Pa made a strategic decision to attend specialized training this Spring through the Discovering the Finance Difference program.

In attendance were some of the top agents with Gateway Realty Inc. The objective is to arm the agents with current information and tools that will help buyers and sellers make better financing decisions. “A coordinated team-approach involving buyers and sellers, their agent and the mortgage professional will focus their efforts to get the transaction done.” stated Brandon Clark, Realtor at Gateway.

The Discovering the Finance Difference course curriculum includes tax advantages of homeownership and financing programs available through FHA, VA, and conventional sources. The highlight of the course is a variety of online finance apps that help buyers and sellers make better decisions by providing easy-to-understand information.

“This type of knowledge sets Brandon Clark, lancaster pa realtor apart from the competition” “I want to help people understand the tax advantages, financing alternatives, and investment aspects of home ownership and what makes now an incredible time to buy.”

The Rent vs. Own app provides buyers with a great picture of the real cost of owning considering the tax advantages, appreciation, amortization, and maintenance. In some cases, the net cost of housing could be 1/3 of the total payment.

Pat Zaby, developer and instructor of the Discovering the Finance Difference program said “The company agents who attended are prepared to increase the marketability of their listings by structuring financing concessions that can save the buyers hundreds of dollars on their payments in the first two years and possibly even have the majority of their closing costs paid by the seller.”

The company agents were trained on 24 different online finance apps that deal with a variety of specific situations that face today’s buyer. These same agents will continue with monthly training sessions to stay up-to-date with the latest changes and innovations in financing.

“We want to make the choice obvious to work with Brandon based on the levels and quality of services he and well-trained agents offer together with our affiliate services.” remarked a company executive when asked about why the company continues to train even its experienced agents.

Brandon Clark lancaster pa Realtor provides a full service shopping experience with services including real estate, mortgage, insurance, warranty, and relocation.

Start your Lancaster pa real estate home search on the lancaster pa real estate website and for more information on the Discovering the Finance Difference can be found on www.PatZaby.com/Seminars/Finance.

Free List of Foreclosures – Lancaster Pa Real Estate

For a free list of homes with prices, pictures, and descriptions visit the lancaster pa real estate website. The exclusive list includes foreclosures and short sales. Be the first to know!

Lancaster PA Real Estate Market Sales Numbers – October

According to the Lancaster Association of Realtors Pending sales were down 19 percent over October 2009 when the federal tax-credits were in full swing, but dipped only slightly (2.5 percent) over last month’s pending sales. Looking at the pre-tax credit market of October 2008, October 2010 pending sales were up 1.3 percent. 

The average sale price here was down slightly (1.2 percent) over October 2009 to $177,771 but year-to-date, the average sale price is up 3.0 percent to $189,498 over the same period (January through October) in 2009. 

More than half (51.0 percent) of the homes and condos that sold in October were on the market for 60 days or fewer (national trends report 5-6 months on-market averages).

Home sales in the $400,000 and higher range have increased 34.0 percent over the same 10-month period last year.

 

SO WHAT ARE MORTGAGE RATES DOING???

The average commitment rate on a 30-year, fixed rate home loan as of November 24th was 4.40 percent, down from the 4.78 percent rate one year ago. The average rate on 15-year, fixed rate mortgages was 3.77 percent, down from the 4.29 percent rate one year ago. One-year adjustable-rate mortgages averaged 3.23 percent, down from the 4.35 percent rate one year ago.

 

It’s A Great Time To Buy!

Despite the negative media, it’s still a great time buy. Mortgage rates are still historically low, meaning you can buy more lancaster pa home for your money. 

To get instant updates of home prices, foreclosures, and the best deals right now be sure to sign up for my newsletter by clicking HERE.>>>>>Lancaster Pa Homes For Sale

* This information has been provided by FlexMLS as of November 16, 2010 and Lancaster Association of Realtors. 

 

Lancaster Pennsylvania Real Estate Sales Data Released September 2010

The Latest Lancaster Pa Real Estate Sales Statistics

For a comprehensive list of Lancaster Real Estate Foreclosures visit the Lancaster Pa Real Estate Website.