Raleigh NC Real Estate

Raleigh NC Real Estate - Mortgage Tips

April 24th, 2008

ARM vs. Fixed Rate - The Great Debate

With so much news about the great “mortgage mess” going on now, many consumers have been lead to believe that an ARM (Adjustable Rate Mortgage) is the worst type of mortgage ever created. Well, like most things, it is not that simple. Here’s why…

First, an ARM is fixed for a term of 3, 5, 7, or 10 years. After this time has expired, then the bank that holds the mortgage changes the rate based on certain parameters included in the loan documents. The new rate can go up or down based on market conditions at the conclusion of the fixed rate period. With this type of loan, the bank is able to offer a loan that is lower than the going 30 year fixed rate because the rate can be adjusted after 3, 5, 7 or 10 years to be in line with the market. It can be a good choice to save money on interest expenses.

The 30 year Fixed Rate Mortgage is the most popular type of loan offered. It guarantees that the interest rate will not change for 30 years unless the customer decides to change the rate by refinancing to a new mortgage. Some people choose this option because they want the security of knowing that their rate is fixed and can’t change.

People looking at getting a new mortgage should ask themselves these questions…

1. How long do I intend to live in the home that I am purchasing?
2. Have I ever refinanced a loan in the past because a lower rate became available?
3. Do I have a relationship with a mortgage professional who will contact me if a better loan option (usually lower rate) becomes available.

Depending on how you answer the above questions, your mortgage professional will be able to direct you to the best decision in regards to choosing an ARM or a Fixed Rate. As is the case when making any large financial decision, it is important to seek out the advice of a professional. Call Andy Holloman, Carolina Mortgage Consultants, if you need any advice or guidance with mortgage loan issues. All advice is FREE!! As a member of the team at Michelle & Associates, Inc., I am committed to providing you the best possible service. 919.439.3904 or andy@carolinamortgageconsultants.com.

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Raleigh NC Real Estate - Mortgage Tips

April 21st, 2008

Should I get a “no closing cost” loan or not?

Closing costs are a part of every new mortgage. Anywhere from 15 -20 people have some involvement in getting a new mortgage closed and those people have to be paid to provide their services. Quite often, I’ll have clients tell me that they would like to find out whether a no closing cost loan is available and they always are.

But a free, or no closing cost mortgage, is not truly “free”. Because there are costs involved in any mortgage transaction, borrowers can choose to pay these costs themselves, have the seller pay them (if they are buying a home), or have the lender pay them. If the lender indicates that they will be doing the new loan as a “zero closing cost” loan, then the lender will be paying the costs.

Because most lenders receive compensation from the bank that they place your loan with, they can choose to pay the closing costs by using this portion of their compensation. But, in order to receive compensation that is fair for providing you with a new loan, they have to make a slight increase in the interest rate. This small increase will raise their compensation enough to allow them to pay the closing costs.

So, if your plan is to only keep a home (or keep the mortgage itself) for less than 3 or so years, a no closing cost loan may be in your best interest. But because most borrowers intend on keeping their home (and the mortgage) for more than 3 years, it is likely that you will come out better in the long run if you pay the closing costs and get a lower interest rate.

Situations and circumstances vary widely. Be sure to have a discussion with your mortgage professional about the pros and cons of a no closing costs loan to be sure that you make the very best decision based on your individual needs.

Questions? Need Help ?? Call Andy Holloman, Carolina Mortgage Consultants at 919-439-3904 or email andy@carolinamortgageconsultants.com.

*Posted by Andy Holloman, a member of the team at Michelle & Associates, Inc. working with Michelle Edwards to provide the best service possible to her clients.

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Free Mortgage Check-up

April 17th, 2008

With all the mortgage buzz in the news lately, have you ever thought about having a mortgage check-up? Now might be that time. Contact Andy Holloman with Carolina Mortgage Consultants at http://www.carolinamortgageconsultants.com/, or email Andy at andy@carolinamortgageconsultants.com, or call Andy at 919-439-3904. He will conduct a free mortgage check-up , and you qualify for a free credit report. Call Andy today!

For all your real estate needs, call Michelle Edwards, Keller Williams Realty! Michelle offers a variety of services for buyers and sellers. Put her 18 years of real estate experience to work for you.

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So What Are You Doing This Weekend?

April 16th, 2008

I am sure you’ve been waiting to do this for a long time. On Monday, April 7th, city officials lifted the Stage 2 Water Restrictions. This means you can wash your cars and powerwash your homes, driveways and sidewalks only on weekends.

You can use your automatic sprinklers only on certain days and times. Odd number addresses can water their lawns on Tuesdays and even number addresses can water their lawns on Wednesdays. The sprinklers can be operated between midnight and 10:00 AM on their specified day. Hose-end sprinklers can be used 6 to 10 AM and 6 to 10 PM.

Go out and enjoy your weekend working on some long awaited chores! For more on the new restrictions, go to www.wral.com/weather/story/2693900.

However, if you would rather spend your weekend looking for a new home, contact Michelle Edwards, Keller Williams Realty and let her show you some of the best buys in the area.

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Raleigh NC Real Estate- 13242 Ashford Park Drive

April 9th, 2008

13242 Ashford Park Drive

This beautiful townhome located in Draymoor Manor is convenient to restaurants and shopping. This 3 bedroom/2.5 bath townhome has hardwood floors throughout the first floor. The foyer opens to a small living room/study which could also be used as an office. The family room features a gas log fireplace with niche above and built-in bookshelves. The large kitchen has cherry cabinets, stainless appliances, granite countertops, and tile backsplash. Crown moulding abounds. The vaulted ceiling in the master adds to the spaciousness of the room and features a walk-in closet. The master bath has cherry dual sink vanities, jacuzzi tub, and separate shower. The third floor loft/bonus extends the living area and is wonderful getaway. A private patio provides additional entertainment area for your guests.

To schedule a private showing of this townhome contact Michelle Edwards at 919-306-1639 or email michelle@cmetobuy.com.

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Raleigh NC Real Estate - Mortgage Tips

April 7th, 2008

Don’t Close Those Old Credit Accounts!!!!

If you have had a variety of credit accounts through the years, you will no doubt notice on your credit report many accounts that you have notused for many years. You may be tempted to take steps to close these accounts or, if they are already cloed, have them removed from your report. DON’T DO IT!!

Old, inactive accounts rarely affect your credit score and there is no reason to address them. Even if they have reporting errors or never should have been included on your report anyway, don’t bother with them. The only time that it makes sense to take action on an old credit account is if there are late payments reporting “lates” are older than 1 year, it is unlikely that fixing the bad information will result in much of an improvement in your credit score.

If you have questions about this article or need a mortgage professional to answer any other questions for you, contact Andy Holloman, Carolina Mortgage Consultants at 919-439-3904 or andy@carolinamortgageconsultants.com.

Andy Holloman is part of the team at Michelle & Associates, Inc. working with Michelle Edwards to provide the best possible service to her clients.

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Raleigh NC Real Estate-Mortgage Myth

April 3rd, 2008

The Myth of the “Great First Time Homebuyer Mortgage Loan”

I love working with first time buyers, but I wish that this urban legend of the “first time buyer” home loan was not so prevalent. It seems that every other first time buyer brings up the subject and they indicate that they want one of these super loans because they haven’t purchased before. While there are loans out there that first time home buyers (FTHB) can get, it is rare that they are the best choice. Here’s why….

Normal, conforming loans (conforming typically = lowest rate) are available from a wide variety of sources and these loans do not distinguish between FTHBs and non-FTHBs. Qualifying for these loans is easy provided a borrower has decent credit, a small down payment (usually 3-5%), and adequate income.

Where the “special” loan options come into play is for the person who may have a challenge with credit, income, or assets (downpayment). Special consideration may be given to FTHBs who may have low-to-moderate credit scores, lower than normal income, or no downpayment. These loans also come with a higher interest rate than conforming loans. There may be good reasons for someone, or even a FTHB, to choose a “special” loan, but just being a FTHB would not be the main reason.

** Remember - a good mortgage consultant can make all the difference when it comes to securing the very best loan to buy a home. The same holds true if you already own a home and are looking to refinance. Everyone’s situation is different. Call me for help with your next home loan.

Andy Holloman, Carolina Mortgage Consultants
919-341-4919 or Andy@carolinamortgageconsultants.com

*Andy Holloman is a member of the team at Michelle & Associates, Inc.

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Raleigh NC Real Estate-8308 Druids Lane, Raleigh, NC

April 1st, 2008

This beautiful well-maintained home has been updated for the new owners already and is in move-in condition. A formal living room and dining room provide the perfect place for entertaining your guests. The living room also has french doors which open to the family room providing additional space to entertain. Cool evenings can be warmed by the gas log fireplace in the family room. The updated kitchen has painted cabinets, laminate floors, granite countertops, and stainless appliances. The breakfast area with its bay window will be a favorite place to sit and watch the birds in the backyard. The huge master bedroom has a laminate floor, a dual sink vanity dressing area, access to a wonderful walk-in closet with built-ins, and a large shower. Two additional bedrooms are on the second floor along with the laundry area. There is also walk-in storage off one of the secondary bedrooms. The third floor walk-up attic has been finished into a bonus room with built-in bookshelves on one end and a play area/sleeping area on the other. This is a wonderful room for extended living space and additional guests and is serviced by a separate heating and cooling system. This home also has a 1 car garage, a deck, a brick patio and a beautifully landscaped yard. See this one today!

Contact Michelle Edwards for a private showing at 919-306-1639 or email michelle@cmetobuy.com or visit Michelle’s website www.cmetobuy.com

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Raleigh NC Real Estate - Mortgage Tips

April 24th, 2008

Raleigh NC Real Estate - Mortgage Tips

April 21st, 2008

Free Mortgage Check-up

April 17th, 2008

So What Are You Doing This Weekend?

April 16th, 2008

Raleigh NC Real Estate- 13242 Ashford Park Drive

April 9th, 2008

Raleigh NC Real Estate - Mortgage Tips

April 7th, 2008

Raleigh NC Real Estate-Mortgage Myth

April 3rd, 2008

Raleigh NC Real Estate-8308 Druids Lane, Raleigh, NC

April 1st, 2008