Search for Foreclosures on Trulia November 28, 2007
Posted by Patti Shawgo in Interesting Stuff, Local News, Mortgage Stuff, Real Estate, Rehabbing.Tags: 203k rehab, baltimore foreclosure search, Maryland real estate
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RealtyTrac, which is a pay service, has partnered with Trulia (a growing real estate database/self-appraisal website) to show foreclosure listings for free. Wow! Good deal. The catch? It does show a picture of the property, and the street that it’s on, but it doesn’t give you the actual property address.
Getting the address though is going to take a bit of sleuthing. You’re easiest path is going to be calling up your local realtor, or dropping me an email (patriciacshawgo@gmail.com). Your other options involve a couple more steps, and I will be writing another article on that.
This is fabulous news for investors and those wanting a property that requires a bit of work. Try searching for foreclosures yourself at www.Trulia.com. Interested in how you would finance rehabbing an owner occupied property? Check out my article on 203k loans and gaining equity in a slower market.
Higher foreclosure rate means more West Nile Virus? November 26, 2007
Posted by Patti Shawgo in Interesting Stuff, Real Estate.Tags: real estate foreclosure effects
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Saw this on MSNBC and thought it was funny. Apparently, where there’s lots of houses in foreclosure that have swimming pools, there’s no one to take care of the pools, which has led to more mosiquitoes and more cases of West Nile virus.
So investors….be sure to put on the Off before looking at those foreclosures.
Money 101: Get your financial self in order November 26, 2007
Posted by Patti Shawgo in Credit, Interesting Stuff, Mortgage Stuff, Optimizing Your Credit.1 comment so far
As the year winds down, it is a good time to inventory your financial well being, and figure out how you can improve in the coming year. Money Magazine with CNN has a FANTASTIC series on personal finance. Whether you are maxing out your 401k every year, or don’t have any more savings than what’s in your checking account, there are useful things to learn from this.
You can access it here: http://money.cnn.com/magazines/moneymag/money101/
Get to know the Neighborhoods of Baltimore City November 13, 2007
Posted by Patti Shawgo in First Time Home Buyers, Interesting Stuff, Local News, Real Estate.Tags: baltimore city neighborhoods, baltimore real estate, live baltimore
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Been thinking about buying in Baltimore City but don’t know your Butcher’s Hill from your Brewere’s Hill? The Live Baltimore Neighborhood Map can help you with that! It is the most extensive collection of neighborhood information for Baltimore City. Click on a specific neighborhood and find out about the types of houses, local schools, churches, and more.
Live Baltimore is an independant non-profit organization that is dedicated to promoting the benefits of city living. They are also they makers of all the I heart City Life gear you might see around town. Weather you are thinking about moving to Baltimore or just want to get to know your city better, there is no better way.
Try it out for yourself HERE.
Math Lesson: Itemizing Home Ownership Costs = BIG Savings November 9, 2007
Posted by Patti Shawgo in First Time Home Buyers, Interesting Stuff, Mortgage Stuff, Real Estate.Tags: baltimore mortgages, home ownership, maryland property tax savings, Maryland real estate
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Bob wrote a great question on the post Why Buying is better than Renting, No Matter What the Market is Like
Here’s his question:
In the example of the $250,000 house purchase, with $1,422 payments per month, what’s the basis behind the first year $6,000 in saving?
Good Question, Bob. Here’s your answer:
If you have a $225,000 mortgage @ 6.5%, you will have paid $14,625 in interest the first year of your loan. Plus the property taxes of $2500 in this example. In this example the total is $17,125.
All the interest & property taxes are tax deductible, plus mortgage insurance if you are paying it and depending on your tax bracket. Don’t know what tax bracket you are in? Look it up on here, got to love Wikipedia!
Back to our example, on your Federal tax returns if you are in the 28% tax bracket, you would save about $4800 on just your Federal tax returns. The other $1200 comes from your Maryland state tax savings. Even if you are in the 25% tax bracket, your tax savings should not be much less. This example does not even figure in the additional tax savings if you are paying mortgage insurance (which you likely would be on a 90% loan as our example from the original states).
Also, don’t discount the fact that most renters can only take the standard deduction, and once you own a home you almost certainly can itemize. Opening a world of other tax savings you may not have had access to before.
Now…let me state: I am not a CPA, and you should most certainly speak to a CPA for tax advice and me for mortgage advice. My guest writer of that tax article will no doubt find it infinitely amusing I am trying to write on my own about taxes.
More House 4 Less: CDA Income Limits November 9, 2007
Posted by Patti Shawgo in First Time Home Buyers, Local News, Mortgage Stuff, Real Estate.Tags: baltimore real estate, maryland cda, more house 4 less, more house for less, mortgages, Real Estate
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So I’ve been mentioning some other types of down payment programs on here besides CDA lately, and I just want to take moment and clarify the different income limits for different programs.
The Maryland CDA mortgage program is part of the Community Development Act, and not to get too technical, but the way they get their money for mortgages and down payment assistance is different that most other programs. Because of that, they are able to have a much higher income limit than most other programs.
The federal and local programs that I work with all have the same *type* of income limits. That is 80% of the median income level for the area. This will vary a little from area to area, for instance, Montgomery County is going to have a higher median income than say, a county on the Eastern Shore.
CDA income limits are not based on this 80% median income model. It’s a good thing too. While a one person household has an easier time being under that 80% mark (about $40,000 for the Baltimore area). It’s really easy to go over the 2 person $45,000 income limit if you are a full time working couple trying to buy a home.
So, the CDA Income Limits, here they are:
For most of Baltimore County, Harford, Carroll, Anne Arundel and Howard Counties with a household of 1-2 people, you can make up to $89,306. In Baltimore City and targeted areas of the surrounding counties the limit is $94,920.
For any other county, check out all the income limits here: http://morehouse4less.com/incomes.aspx
Do 100% Financing Options Still Exist?? November 9, 2007
Posted by Patti Shawgo in First Time Home Buyers, Interesting Stuff, Mortgage Stuff.Tags: 100% financing, baltimore, First time home buyer programs, home financing, Maryland real estate
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Of course they do! 2 years ago maybe all you needed to get 100% financing was a pulse, but just because you don’t have a huge down payment saved up, doesn’t mean you can’t buy a home. Right now you can get some great deals on houses you maybe couldn’t afford a couple years ago, and I can help you finance them with very little money out of pocket!
Types of 100% (or near 100%) financing available:
- the Maryland CDA (or More House For Less) loan programs, that I’ve talked about here & here
- FHA finance up to 97.75% , almost 100%, but allows for up to 6% seller concession, which I talked about here.
- Traditional 100% financing on one loan with Mortgage Insurance
- 100% financing with one loan, and NO mortgage insurance or Lender Paid Mortgage Insurance
What doesn’t exist anymore: the 80/20 (an 80% first mortgage with a 20% second mortgage to avoid mortgage insurance) is quickly going extinct. Second mortgage financing is just more and more difficult to swing these days. Stop and think about it and it makes sense. A second mortgage is second in line. So if there is a foreclosure on a house the first lien gets paid off first, and the second mortgage gets whats left over. If someone has financed 100% of the property value with all the lawyer fees & auction costs, it’s likely that there will not be enough money to pay off the entire second mortgage. That is a risk that investors are not willing to take, and the money for second mortgages on an 80/20 loan has all buy dried up. If you can find it, you are going to pay in the rate, which makes other types of 100% financing much better choices.
Who’s absolutely gleeful about the decline of second mortgages? Why, mortgage insurance companies of course! The 100% mortgage with mortgage insurance is there for most consumers. While mortgage insurance was once avoided whenever possible because of a lack of tax deductibility, it now is tax deductible for most borrowers! If you have a lower credit score you may pay a little bit more, but monthly mortgage insurance is viable option for a lot of borrowers.
For buyers that don’t want to pay monthly mortgage insurance, there are programs that allow for Lender Paid Mortgage Insurance. You get a slightly higher rate, and then your lender pays a flat upfront fee for your mortgage insurance. There are also other ways to structure mortgage insurance. Now that it is becoming more popular again, the MI companies are offering flexible ways to make home ownership possible for buyers.
And last, but not least, there is FHA. FHA does not have 100% financing, but at 97.75% financing it is pretty close. Plus, FHA is a little more flexible in how you qualify for a loan. It was a loan program tailored for first time home buyers and their needs, decades and decades ago, and it still is a useful program today.
Why Buying is better than Renting, No Matter What the Market is Like November 2, 2007
Posted by Patti Shawgo in First Time Home Buyers, Interesting Stuff, Local News, Mortgage Stuff, Real Estate.Tags: baltimore home buying, Maryland real estate, maryland taxes, tax advantages
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I’m pleased to have my first guest writer on my blog. He is Chuck Click, Certified Public Account, and he has been a CPA for more than 30 years, so he really knows his stuff. Plus, he’s my dad!
I truly believe it makes good financial sense to be a home owner, not matter how slowly your property value is appreciating. If there is any true fact about real estate, it is that there is only so much land. And there is only so much land around areas that have lots of jobs, so people in Maryland can rest easy. What many potential first time home buyers don’t quite understand is the impact that owning a home will have on your taxes. And so, I’ve brought on an expert to explain just how big an impact it can make.
Do you need help with your tax returns? Email Chuck at cwccpa1@comcast.net. Without further ado, here is Chuck Click, CPA:
While pride of ownership and equity-building are two very good reasons to consider buying versus renting, there are a multitude of tax saving opportunities available to the homeowner as well.
Here are some (but certainly not all) of the major tax advantages accessible to all homeowners.
Assuming a new home purchase price of $250,000, a 10% down payment, a loan would be placed on the property for $225,000. A 30-year mortgage at an annual interest rate of 6.5% would produce monthly payments of $1,422.00. Assuming also real estate taxes of $2,500 per year; then 1st year savings here in Maryland would total approximately $6,000.00! That’s monthly tax savings of $500.00 which brings the effective out-of-pocket mortgage payment down to $922.00 per month – often cheaper than renting!
Homebuyers also can be entitled to a Year-of-Purchase “bonus” as any Points (Also called Loan Origination Fees or Loan Discount) paid can be deducted by the homebuyer. In the above example if the loan required 2 points to be paid at settlement –(A “point” equals 1% of the loan amount), then a deduction of $4,500 would be allowed. This deduction is available to the buyer even if the seller agrees to pay the points for the buyer!
For 2007 (and expected to be extended into 2008 and beyond), a home-owner is also eligible for (federal only) tax credits for energy efficient improvements made to their personal residence. New storm windows/doors, energy-efficient heat pumps and furnace’s, and new insulation are just some of the items that can qualify for tax credits with a value of up to $500.00!
Baltimore County Home Buyer Aid Goes Unused November 2, 2007
Posted by Patti Shawgo in Uncategorized.Tags: Baltimore County, down payment assistance, First Time Home Buyers, Maryland real estate
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Here is a great article from the Towson Times, and you might just recognize one of their sources, it’s me.
Read the full article, after the jump…
