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Home Safe HOME

by Morris Pyle Team

Home Safe Home

 

Home is a place you should feel safe and secure. Sometimes, we take it for granted and unfortunately, we do need to remain vigilant about things we do that could compromise our safety. Here are a few tips to consider:

• Everyone loves an inviting home including burglars. Make sure it looks occupied and is difficult to break in.

 

    • Always lock outside doors and windows even if you’re only gone for a brief time.

    • Lock gates and fences.

    • Leave lights on when you leave; consider timers to automatically control the lights.

    • Keep your garage door closed even when you’re home; don’t tempt thieves with what you have in your garage.

    • Suspend your mail and newspaper delivery when you’re out of town or get a neighbor to pick it up for you.

 

• Posting that you’re out of town or away from home on social networks is like advertising your home is unprotected.

• Equally dangerous could be allowing certain social network sites to track your location.

• Don’t leave keys under doormats, in flowerpots or the plastic rocks; thieves know about those hiding places and even more than you can think.

• Trim the shrubs from around your home; don’t give criminals a place to hide.

• Use exterior motion detectors and yard lighting.

• Have an alarm system and use it when you leave home and go to bed.

• Put 3 ½” deck screws in door plates and door hinges.

• Have good deadbolts on all exterior doors.

• Exterior doors should be solid core.

Assumptions are an Alternative

by Morris Pyle Team

Assumptions are an Alternative

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In the late 80’s, both FHA and VA began requiring buyers to qualify to assume their mortgages. The main reason there haven’t been many assumptions in the past 25 years is that interest rates have been steadily going down and if a person has to qualify, they might as well do it on a new loan and get a lower interest rate.

Based on projections by Fannie Mae, Freddie Mac, the MBA and NAR, rates for the second half of 2017 and 2018 are expected to be higher. When interest rates on new mortgages are higher than the rates of assumable FHA and VA mortgages in the recent past, it becomes more advantageous to assume the existing mortgages.

FHA and VA loans originated with lower than current interest rates have great advantages for buyers and sellers.

  1. Interest rate won't change for the qualified buyer
  2. Lower interest rate means lower payments
  3. Lower closing costs than originating a new mortgage
  4. Easier to qualify for an assumption than a new loan
  5. Lower interest rate loans amortize faster than higher ones
  6. Equity grows faster because loan is further along the amortization schedule
  7. Assumable mortgage could make the home more marketable

An Assumption Comparison can help determine the savings and financial benefits of an assumable mortgage with a lower rate.

Down Payment Problem - are you Sure?

by Morris Pyle Team
Down Payment Problem - Are You Sure?

There is increasing difficulty for first-time home buyers to save for their down payment as indicated in the graph.  Several factors that contribute to this trend include rising rents, rising home prices, student loan debt and flat wages.

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Some would-be buyers feel they cannot buy a home today but a large part of those decisions may be based on inaccurate assumptions.

Nine out of ten non-owners believe they need ten percent or more for a down payment. The typical down payment for first-time buyers is six percent. VA has 100% loan programs as well as USDA for certain qualifying areas and buyers. FHA is known for 3.5% down payments. And FNMA and Freddie Mac have down payments as low as 3% and 5%.

There are gift provisions available for buyers who have an “angel” who would like to help them with their down payment.

There are ways to borrow against a person’s qualified retirement program for a down payment. It isn’t necessarily limited to the buyer but could include a relative. Interestingly, a son or daughter can borrow against their retirement to benefit their parents.

In some respects, having good credit and sufficient income is more important than the down payment. Don’t rely on “common knowledge.” Get expert advice and counsel to see if there is a way to advance your dream of owning a home.

3 Steps to Home Buying!

by Morris Pyle Team

A professional Realtor can go a long way in helping you get through the home buying process with the least amount of drama.

Step 1 to buying a home should be Find a Real Estate Agent you trust to help you. This person may become your lifeline during what can be a somewhat stressful transaction. You may end up making many calls and/or emails to seek guidance, information; and sometimes, quite honestly, just to vent about the loan process or financial hoops you have to jump through.

Step 2 is Get Pre-Approved For a Loan before you start shopping. This will help you have a realistic expectation of what you can afford for a house. This also gives you the ability to move forward quickly when you find a house you want to buy.  I am happy to recommend a Loan Officer and lender who will work hard to approve a loan for you!

Step 3 is Start House Shopping! Be sure you are buying a house that you can see yourself living in for a while. Typically you do not want to be back in the market in just a few years. The same is true for financing - make sure the loan you get is something you can handle for the long term. Be aware of the terms. If you decide on a variable mortgage, make sure you understand when rates are going to go up, and, if there are balloon payments, when balloon payments are due & how much.

Buying a home now, in the F-M Area, should be a great investment! Interest rates are very low, & our economy is one of the best! The Best time to buy is NOW! Prices are increasing!

Morris Pyle, Realtor Emeritus, RE/MAX Legacy Realty

Just call or email me to get my 40+ years of experience to help you purchase your dream home!  701-238-1652 or morrispyle@gmail.com 

Lower the Rate - Deduct the Interest - 4/9/2017

by Morris Pyle Team

Lower the Rate - Deduct the Interest - 4/9/2017 
 

Credit card debt in America is back to levels prior to the recession. The average credit card APR is just under 16% according to CreditCards.com Weekly Credit Card Report.  33967393-250.jpgHomeowners have an advantage over renters when it comes to getting their arms around debt issues.

Basic money management suggests that higher rate debt be replaced with lower rate debt. Credit cards, personal cars, boats, motor vehicles and other personal property, typically have interest rates higher than that of real estate loans.

Borrowing against a person’s home usually provides the lowest rate of financing. Refinancing a home mortgage to take cash out to retire personal debt is one option. Another would be to secure a home equity or HELOC, home equity line of credit.

An alternative advantage of borrowing against one’s home is that the interest may be tax deductible unlike the interest on most personal debt. Qualified mortgage interest includes acquisition debt which can only be used to buy, build or improve a principal residence and up to $100,000 of home equity debt which can be used for any purpose.

Managing money is a critical life skill that people need to master. While the goal may be to become debt-free, paying the least amount of interest possible can be a good first step. Owning a home provides an asset that allows for options not available to tenants. Seek professional advice to determine your best course of action.

Homes are already selling two weeks faster than a year ago but timing could make them faster still.

Spring is ??????

by Morris Pyle Team

I hope everybody is enjoying the great weather we are having here in the Northland the last few days.   We have noticed a significant uptick in the number of people looking at homes over the last two week.  I think we are in our spring surge.   

This is a good time to be looking for a new home, but you have to remember that you also need all of your finance in place, since a lot of people are also looking so that dream home you are looking for might be gone in just a few days on the market.  If you have not completed your pre-check list, you should get on that now.   I have seen several items that can help people with getting things like Mortgage applications in order and approved.

https://www.fool.com/mortgages/2017/02/11/4-mortgage-fears-and-how-to-fix-them.aspx

I hope you all will enjoy the nice weather and give us a call to help you find the home you are looking for.

Mortgage Loans from Relatives

by Morris Pyle Team
Mortgage Loans from Relatives

Occasionally, when dealing with close relatives who might also become heirs, signing a note and handling the paperwork properly may seem like a needless effort but it could mean the difference in being able to take a legitimate interest deduction.

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Home mortgage interest is deductible only if the loan is a secured debt which involves the buyer signing an instrument like a mortgage or deed of trust that makes the ownership of the home security for the debt. That instrument must then be recorded or otherwise perfected according to state or local law and the home, in case of default, must be able to satisfy the debt.

In a family situation, a parent, grandparent or other relative may decide to loan a buyer the money to purchase a home because they have it available and it isn’t earning much in certificates of deposit. They offer to loan it for a rate equal to what a conventional lender is charging but without the fees.

While it may appear to be a win-win situation, there could be problems if things are not done correctly. Even if the borrower makes the payments, they are not entitled to an interest deduction unless three criteria are met: 1) sign a debt instrument specifying the terms 2) securing and record the debt properly and 3) the home is sufficient collateral for the loan.

It would be prudent to consult with an attorney before you sign the final settlement papers to be comfortable that both buyer and the lender-relative are complying with IRS regulations. For more information, see IRS Publication 936 – Home Mortgage Interest.

 

We would love to help you Buy or Sell your Home.

The Morris Pyle Team will give you the Service only a top Realtor can give you!

The Morris Pyle Team has some of the best and longest experience in Selling and Buying homes in the Fargo / Moorhead market that you can find.

We also believe in using the tools that are available today to help our customers find the home they want and get their current home sold as fast as possible for the best Price!

CALL or  SEE us TODAY

http://87778.mobi/REALFARGO  to download our Mobile App

Now is a very good time to be looking for a Home!

by Morris Pyle Team

Now is a very good time to be looking for a Home!  The Market is set, and the weather is good.  To hlep you with your home search we have several tools for you to use.

1. www.fargohomecenter.com

2.  Phone/Tablet App = http://87778.mobi/REALFARGO

3.  Call and meet with US - 701-238-1652

THE MORRIS PYLE Team is here to help you find your HOME!

 

 

Displaying blog entries 1-10 of 33

Contact Information

Photo of Morris Pyle Team Real Estate
Morris Pyle Team
RE/MAX Legacy Realty
4342 15th Ave. S., Suite 105
Fargo ND 58103
701-238-1652
701-281-0449