Eva Bradley's Blog

The Cost Of Your Mortgage Loan

The same care and consideration you give to finding the right house should be applied to your search for the right mortgage lender. For most home-buyers a major determining factor in selecting a lender is the cost of the mortgage loan.

But how do you determine the cost of a mortgage loan?

Shopping for a Mortgage Loan

While most buyers concentrate on interest rates, it is best to look at all the costs associated with a mortgage loan. Mortgage loans include the quoted interest rate, points and closing costs.

But how do you determine the cost of a mortgage loan?

Shopping for a Mortgage Loan

While most buyers concentrate on interest rates, it is best to look at all the costs associated with a mortgage loan. Mortgage loans include the quoted interest rate, points and closing costs.

More than Just Interest

A number of fees are associated with the mortgage loan, including:

• Appraisal - A carefully documented opinion of value by a licensed, professional appraiser.
• Credit Report – A detailed report of your credit, employment and residence history prepared by a credit bureau.
• Principal – The amount owed on a mortgage which does not include interest or other fees.
• Document Fees, Loan Fees and Processing Fees – Miscellaneous fees charged by the lender.
• Discount Points – Points paid in addition to the loan origination fee to get a lower interest rate. (1 point = 1 percent of loan amount)
• Origination Points – the total number of points paid by the borrower at closing. (1 point = 1 percent of loan amount)

Interest Rate – A percentage of a loan or mortgage value that is paid to the lender as compensation for loaning fund

Using the Annual Percentage Rate (APR) to Compare Mortgage Loans

The APR was designed to help borrowers understand the relative costs of a mortgage loan. The APR takes into account the various fees associated with the loan, which is why it is often higher than the interest rate. Understand that not all lenders calculate a loan’s APR in the same way. That is why this should be only one of the factors used in selecting the best mortgage for you.

Locking-in Interest Rates

Another factor to consider when selecting a lender is whether the lender will lock-in the mortgage’s interest rate and points. Click here to learn more about lock-in options.

Read here about “Mortgage Saving Tips“

This is what you will hear from realtors in the following weeks, all over the country:  The time to buy a house is now! 

Interest rates are at historical low levels, home prices are very affordable; it just doesn’t get any better than this.  If you were waiting for the bottom, this is it!

Please read the article below; NAR (National Association of Realtors) finally has some good news to report on the housing front: 

Big gain on existing homes sales

This time, I would like to tell you a bit about me; I was born and raised in Hungary.  Came to the US in 1987 as an immigrant,  without speaking a word of english.  Even Today, when I speak, I have a strong accent, which will stay with me for the rest of my life.  When you read my blogs, you will notice that sometimes my sentences are not put together the right way; please forgive me for that. 

Just like most of us who grew up in Europe, I have very strong family and community values and respect for the aged, which I continued to pass on to my kids as well. 

I learned to cook from my grandma and enjoy feeding who ever is willing to taste my food.  When I cook or bake something Hungarian, I always take a plate to my office  for everyone to taste.  When cooking or baking  hungarian food, I use a lot of onion, sour cream, garlic, red pepper (paprika) and many other spices.

I am a proud mother of three kids and grandma of four grand kids.

 I love helping people and I love being in the real estate business.  I am a simple person and like to talk in simple terms.  I like when people are straight with me, as I am with them. I take critisism very seriously and always looking  for ways to better my self. 

I thought that maybe there are some people out there who would like to see how the Hungarians are doing things, so here is a video clip about  “American Idol” – Hungarian style:  

Recycling – Hungarian Style  

 

 

Mello-Roos Taxes

Mello-Roos taxes are assessed to special tax districts, known as Mello-Roos Districts or Community Facilities Districts, for the purpose of financing public services and/or facilities including streets, police protection, fire protection, elementary schools, parks, libraries, museums, and cultural facilities.

California State Senator Henry Mello and Assemblyman Mike Roos spearheaded the successful passage of the Mello-Roos Community Facilities District Act in 1982. The Act passed in response to Proposition 13 (enacted in 1978), which limited the ability of local governments and developers to finance new projects.

Mello Roos District
The Mello-Roos act authorized any county, city, special district, school district or joint powers of authority to create a Mello Roos District with approval of a two-thirds margin of qualified voters in the district.

Property Owners
The Mello Roos District can issue bonds to pay for public improvements. The district’s property owners are responsible for payment of a “special tax” to repay these bonds. The act allows for considerable flexibility on how the special tax is calculated. The calculation often takes into account property characteristics such as square footage of the home and parcel size. Typically, the tax is included with your general property tax bill.

Time Limit
The special Mello-Roos tax stays in effect as long as needed to repay the principal and interest on the special bond along with any reasonable administrative costs. The Mello Roos tax may not stay in effect for a period longer than 40 years.

Property Sale
An increased value of the property does not affect the amount of the tax when property is sold.

Where in Tracy?   Homes built before 1982 are free of Mello Ross Taxes. In newer areas of Tracy a couple of home builders paid all Mello Ross taxes in advance, so homeowners don’t have to worry about it.  Please feel free to contact me if you would like to know which areas in Tracy are without Mello Ross taxes.                                                                     

Avoid Holiday Theft

Although we’d like to believe the holidays bring out peace on earth and good will towards men (as the Christmas carol goes), the weeks between Thanksgiving and New Year’s Day tend to be a prime season for criminals. During this busy time of year, you can take some easy precautions to prevent becoming a victim of theft. Consider the following safety tips:

When holiday shopping:

• Don’t park in unlit areas at night.
• Put your shopping bags in your trunk. Don’t try to cover items on your seats with a blanket. Better yet, take your packages straight home after a shopping spree and then go back out.
• Don’t carry large amounts of cash with you, or else, keep it in your front pocket not in your purse or wallet.
• Be extra careful when carrying a purse – they are the prime targets of criminals in crowded shopping areas. If you must carry one, make sure it has a strap that can go over the shoulder and be held under the arm, making them more difficult for purse snatchers to grab.
• Keep a record of all of your credit card numbers in a safe place at home.
• Beware of strangers approaching you. This is the time of year when thieves may try various methods to distract you with the intention of taking your money or belongings.

At home:

• When leaving home for an extended time, have a neighbor or family member watch your house and pick up your newspapers and mail.
• Leave a light on when you leave your home at night or put your lights (including Christmas lights) on an automatic timer.
• Make sure your holiday gifts are not visible through the windows and doors of your home.
• Never say you are away from home on the outgoing message on you answering machine or voice mail. Simply say you are unable to get answer the phone at the time.

During the holidays, many people can become careless and vulnerable to theft and other holiday crime. Protecting yourself and your home from potential crime is the easiest way to ensure a safe and happy holiday season.

Here are some more tips:

• Never ever sit in your car without looking in the backseat area.
• Always be aware of your surroundings.
• Snap or zip up your hand bag.
• Do not ever roll down your car window for anyone.

Have fun shopping this Holyday Season, but remember: better be safe than sorry.

In my opinion, this is a step in the right direction, taken by Fannie Mae.  I can only hope that other lenders will follow this.  It will help homeowners to stay in their homes after the foreclosure and at the same time it will stabilize neighborhoods and keep homes in better shape.

Read the full story here: http://bit.ly/bxVq9

My husband and I live on the outskirt of Tracy, in midst of country properties. Most of the homes are sitting here on one to two acres, so homes are pretty far set from each other.  Our neighborhood is very quite, rarely any chance to talk to anyone. 

It was a Thursday afternoon, garbage pick up day. My husband, John, is a cautious and alert guy, receptive to any changes. As he was coming home from work noticed that our only neighbor on the right side, a retired gentleman who lived alone, still had his garbage tote out front, which was unusual.  He always took care of it right after the garbage truck left, but not on this day. 

John pulled the tote into the drive way, not sure where he supposed to put it.  He was thinking that there is something not right; maybe our neighbor got sick, or he is gone for a few days, or who knows what.  

As he was getting closer to the entrance, our neighbor opened his front door and asked my husband why he does this.  My dear husband replied:  it was so out of routine for him to leave the garbage can outside, that John got worried, thinking perhaps something wasn’t right.  The man was obviously so surprised, he couldn’t find words right away.  He was thanking John for being such a caring neighbor and said that he would have never thought anyone is looking out for him.  Right there he made a promise to pay more attention to us and the surrounding neighbors from now on.

 Folks, you never know what will happen in the future; you may need such caring action form your neighbor or you may not.  Nevertheless, neighbors are important, not only because they might help you some day, but because they are the ones, along with you, who are shaping your neighborhoods to be desirable and giving value to your homes and to the area where you live.   So, when next time one of the homes around you will be listed for sale, the Realtor can, with good conscience, write it into the marketing “Located in a Very Nice, Established Neighborhood” without hesitance, because it will be the truth.

Purchasing a home is probably the single biggest investment you will ever make. Before closing on the house, you’ll want to know that no other individual or entity has a right, lien or claim to the property.

For a modest, one-time title insurance premium, you will receive continuous title insurance protection in an amount equal to the purchase price of the property or its current market value. This premium typically includes your “owners” policy as well as the “lenders” policy.

One of the marked advantages of title insurance is that prior to a policy being issued, the title insurance company completes extensive research into relevant public records, maps and documents to trace ownership of the property and determine if anyone other than you has an interest in the property. Through its research, the title insurance company can usually identify any title problems that may arise and have these problems cleared-up prior to closing.

This is extreemly important, escpecially these days, where many homes going trhough foreclosure, and changing hands rather rapidly.  As a home buyer, you want to make very sure that the tilte of the home you are buying is free of any leans!    

 

Homeowners win big with extension and expansion of federal tax credit

The U.S. House of Representatives today voted 403 to 12 to extend and expand the home buyer tax credit.  The bill passed the U.S. Senate late yesterday and now will go to President Obama for his signature, where it is expected to be signed this week.

The tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline.  First-time home buyers will continue to receive a tax credit of up to $8,000, while existing homeowners will receive a credit of up to $6,500.  Existing homeowners will be eligible for the $6,500 if they have lived in their current residences for at least five years.  The bill also will increase the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively.  The purchase price of the home is capped at $800,000.

Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The bill maintains the provision that home buyers do not have to repay the credit, provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

 For weeks, the CALIFORNIA ASSOCIATION OF REALTORS (C.A.R and its members have urged Congress and the U.S. Senate to extend and expand this crucial piece of legislation.

 Nationwide, more than 1.4 million first-time home buyers were given the opportunity to become homeowners as a result of the Federal Tax Credit for First-time Home Buyers.  According to C.A.R. research, nearly 40 percent of first-time home buyers surveyed said they would not have purchased a home without the federal tax credit, and approximately 70 percent said the tax credit was “the most important” or a “very important” factor in their decision to buy a home. 

To read stories about the extension and expansion of this valuable home-buying incentive, please visit the following:

Aid for jobless, homebuyers clears Congress
To read the full story, please click here. 

 Congress Extends Jobless Benefits, Home-Buyer Credit
To read the full story, please click here. 

Congress passes bill extending unemployment insurance, home buyer tax credit
To read the full story, please click here.

Check out my November Newsletter; it contains many real estate related, useful information and good housekeeping tips. Please feel free to comment on the issues, or ask questions.