Monday, July 28, 2014

Friday, July 25, 2014

You Got An Offer On Your Listing And The Clients Are Pre-Approved, Now What?


Some info for Realtors about steps to take after receiving an offer on your listing when the client has been pre-approved

Tuesday, July 22, 2014

Porter Report Success on Commission Part 2

This weeks Porter Report is the second part of a series on what it takes to be successful in a commission only business.

Saturday, July 19, 2014

A General Guide to Investment Property Refinancing

If you have an investment property, you can certainly consider the option of refinancing just like any mortgage borrower. Things work slightly differently for property investors than for homeowners, but there are good opportunities available. Find out everything which you need to know about this option and get some practical advice on how to make full use of it.


There are no restrictions to investment property refinancing. You can refinance your current mortgage just like any other borrower. The main difference comes from the fact that you will have to pay higher interest than a homeowner. This is because loans backed with investment properties are considered riskier.

Hence, the advertised rates that you see may not apply to you. The good news is that the rates for investors are typically no higher than half a percentage point. Another thing to note is that the closing cost may be higher as well. Often, the appraisal fee is higher. Other fees may be higher as well.

The best thing which you can do is to do some research in advance. Try to get an idea of what interest rate a lender will charge you and to estimate the closing costs. That way, you will be able to calculate whether refinancing will be the more cost-efficient and the more affordable option for you.


Lenders have stricter requirements for property investors applying for mortgage refinancing. The lower loan-to-value ratio you have the higher your chances of approval are. Most lenders will consider your application if your ratio is 75% or lower.

You must have a good credit score. It is best if it is above 700. This will guarantee you approval to a great extent. In general, you should try to boost your score as much as possible as it will have a major impact on the interest rate that you will have to pay.

The lender will take into account your debt-to-income ratio as well. The lower it is the better. It is important to note that any rental income may not be taken into account when this ratio is calculated. Most lenders will only add it to your employment and other income if you have had rental income for the past two years without interruption.

Available Programs

Once you determine that investment property refinancing will be the better option compared to sticking with your current mortgage, you should compare the different loans available. Virtually all lenders will offer such loans to property investors. It is an interesting fact that you can even qualify for the Home Affordable Refinance Program (HARP) provided that your property consists of no more than four units.

Comparison shopping is extremely important. This is because the competition between lenders is considerable. Furthermore, even interest which is half a percentage point lower can save you quite a lot of money in the long term. You must use your bargaining power as well. You can achieve great savings with negotiation.

You can go for investment property refinancing with great confidence if it will save you money. It may be harder to qualify, but it will pay off to get rid of your current mortgage.

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Wednesday, July 16, 2014

Porter Report Success on Commission

This weeks Porter Report is the first part of a series on what it takes to be successful in a commission only business.

Sunday, July 13, 2014

Why Making a Down Payment on a House Is Necessary

You may have heard all kinds of suggestions on what size of down payment you should make on your house. These range from no money down up to 30%. There are several factors that go into determining what the best down payment is for you. You might also find different types of loans that won't necessarily penalize you for a lower down payment.

A down payment is the amount of money you are willing to pay out when you finalize the home loan contract. It reduces the amount of money being financed, and it can mean you gain a beneficial interest rate.

This is not the same thing as earnest money, the money you put forth in a home offer. The seller will see the earnest money as a sign you are serious about buying their house. Your earnest money can be rolled into your down payment, once you get to that phase.

Your loan to value ratio is based on the amount of the loan left after your down payment. The more you can pay as a down payment, the lower your loan amount is. Your loan to value ratio will also be lower. The value is the value of your home - what you are buying it for. Your bank will give you preferential rates for a loan to value ratio of 80% or less.

A private mortgage insurance, or PMI, might have to be paid for if you put down less than 20%. Since your loan to value ratio is higher, you are seen as more of a risk. Many banks got burned in the housing market crash of 2008, and this is one way of preventing that from happening again.

People with exceptional credit may qualify for a 5% down payment, thanks to their credit history. Banks are more likely to look favorably on them, hence the lower rate.

If you really want to get into a house, and you are willing to pay a PMI, it might be worth a lower down for you. Otherwise, waiting might be the best plan for you so you can reduce your monthly costs. Talk to your lender and evaluate your own financial situation to see what will be best. You will still want to have some money in savings for the unexpected, so don't drain yourself completely.

An FHA or federally backed loan might be able to save you some on your down payment. Many times these loans only require 3.5% as a down payment. If you are a veteran, you may qualify for a no money down VA loan. See your lending institution for more details.

Some states may also have some home loan assistance options. It's worth looking into them, especially if you are willing to live in the country.

Ultimately, the larger a down payment you can make, the better. It will get you a preferential rate and it will reduce the face value of the loan. Banks will be more willing to talk to you and finance your home loan if you can pay a higher down payment.

If you looking for a jobs in Boston that has the potential to make over 150k+ your 1st year. And you have your mass real estate license then please contact us at Tazar. Also if you need the best Boston plumbing service at a fair value please contact Boston Plumber.
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Thursday, July 10, 2014

Reverse Mortgages: Mortgage Financing for Seniors

You've probably seen commercials lately for Reverse Mortgages (FHA- backed loans aimed at Senior Citizens). They allow seniors to exchange some or all of their home's equity for cash for paying unanticipated medical expenses, supplementing their fixed income, making home improvements, etc. The major drawback is that such programs attract scammers willing to charge you for information that HUD offers for free. My husband's parents obtained a reverse mortgage. For them, the major benefit is that when they're both gone, the lender owns the property so their children won't have the burden of trying to sell the house.

The Requirements

There are a list of requirements for obtaining a reverse mortgage.

1. You must be 62 or older.
2. The property must be paid off completely or have a sizeable amount paid down.
3. The home must be your primary residence.
4. You can't be delinquent on your taxes.
5. You need to have the financial resources to pay ongoing property taxes, homeowner's insurance, HOA fees and the like.
6. You must meet with a HUD-approved Home Equity Conversion Mortgage (HECM) counselor for an information session.

Your house must be one of the following to qualify:

1. single-family home.
2. 2 to 4 unit home (townhouse, duplex, three-plex), and one of the units must be your primary residence
3. HUD-approved condo
4. manufactured home that passes FHA conditions

The HCEM Reverse Mortgage Program

The first step before obtaining a reverse mortgage is to talk to an HECM counselor (call toll free: 800-569-4287). The counselor will discuss:

• the program eligibility requirements.
• the financial implications.
• alternatives to a reverse mortgage.
• repayment of the loan (yes, this is still a loan). In my in-laws' case, repayment of the loan means that the bank takes possession of their home as repayment, once both parents are deceased or are no longer physically able to take care of themselves.

Once you determine your eligibility, and have had time to determine if this is the right move, then get a list of FHA-approved lenders and fill out the reverse mortgage application. The lender will discuss the above points as well as talking about the loan approval process.

The Financial Aspects

The lender will look into the following terms to determine whether you qualify:

• your income, assets, living expenses, credit history
• whether you've paid income taxes, property taxes, and insurance on time
At which point you may be eligible for one of the following types of reverse mortgage:
• Tenure - fixed monthly payments for as long as one of the borrowers continues to use the property as their primary residence. (This is the type my in-laws have).
• Term - fixed monthly payments over a specified time period.
• Line of Credit - unscheduled payments, the borrower chooses the amounts and payment dates, until the line of credit runs out.
• Modified Tenure - combines Tenure / Line of Credit.
• Modified Term - combines Term / Line of Credit.
• Lump Sum - single disbursement.

The reverse mortgage will include interest (at the current rate). There will also be closing costs which you can pay outright or fold back into the reverse mortgage. Additional HECM fees include: mortgage insurance, third party charges, origination fees (paid to the lender), interest, and servicing fees. All these add-ons will reduce the amount of funds available to you

Reverse mortgages may or may not be right for you. Be sure to discuss it with trusted friends, family, and advisers before you sign anything.

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