Raleigh NC Real Estate

Mortgage Minute -When is the right time to refinance?

July 30th, 2008

With so many loan options, supposedly “low, low” rates, and discussion about the weak economy and housing market, how does someone go about deciding whether to refinance their current home loan?

Consumers have thousands of options and it is easy to get confused about the main reasons why you should look at refinancing. So here’s a short list of important things to consider -

1. First and foremost, talk with a mortgage consultant that is local, trustworthy, and honest. Ask people you know if they can recommend a local mortgage professional. Most mortgage professionals rely on personal referrals and thus their main interests coincide with those of their clients. Happy clients keep sending more referrals. Out-of-town or “800″ number mortgage folks just don’t have the same incentive to provide sound advice and to make the process go smoothly. They are strictly transaction driven.

2. Provide your mortgage professional with ALL the information they need. Many people think the process of getting a new loan is cumbersome and will require that they gather tons of paperwork. Quite the opposite is true. Just to investigate whether refinancing makes sense, requires only a 10 minute phone call. That’s it. Once you provide your mortgage professional with all the information they need by phone, then they can review your file and help you decide whether it makes sense to proceed further. A reputable mortgage professional may tell you NOT to make any changes to your current loan. If it is determined that you could benefit from a new mortgage, then the process can continue and will likely require some work on your part.

3. Move forward with the refinance if you and your mortgage professional are convinced that getting a new loan is beneficial. You can easily compare the rate offer that your mortgage consultant provides by researching rates with local banks and/or by using the internet. Be sure to provide your mortgage consultant with any information you find regarding othercompetitive offers so that they can help you make an “apples-to-apples” comparison. Loan offers can be confusing and often misleading and a talented mortgage professional will be able to explain loan offers and provide you with answers to all of your questions

If you would like more information on refinancing contact Andy Holloman at 919-439-3904 or email andy@carolinamortgageconsultants.com, a member of the real estate team at Michelle & Associates, Inc.

If you would like to speak with a real estate agent about questions on a particular property or to just ask some questions about the home buying process, contact Michelle Edwards at 919-306-1639 or email michelle@cmetobuy.com.

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Parks and Recreation in the Raleigh North Carolina Area

July 28th, 2008

Do you love being outside? Wake County Parks, Recreation and Open Space offer a large variety of facilities and activities one can choose from. Whether you like to walk, bike or jog there are various trails you can use for each. If fishing and boating are more suited to you, there are numerous launch areas you can use. Families can utilize picnic areas, playgrounds, tennis courts, softball or baseball fields, and batting cages. Teams have access to soccer and football fields, multipurpose courts or fields, volleyball courts, and tracks. There are also museums which features educational programs. Whatever you like, you should be able to find a reason to get out of the house and get moving.

If you want to make a move though, you need a real estate professional to advise you. Contact Michelle Edwards for up-to-date information on the Raleigh, North Carolina area and assistance with your move.

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How Much House Can You Afford?

July 7th, 2008

This a common question, especially for first time homebuyers. Remember that part of the house hunting process is getting connected with a mortgage professional who can advise you on how the banks go about determining the price of the home that you can qualify for. While there is no exact method for determining what you can afford, here is a good rule of thumb -

Banks want your Debt-to-Income ratio to be between 40% and 50%. To determine your “DTI”, take your new house payment plus all the other monthly obligations that appear on your credit report and divide it by your monthly GROSS income (before taxes). The bank figures your DTI based solely on the payments that appear on your credit report.

So if John Doe makes $3000 / mo. and has a car payment for $200 / mo. plus 2 credit cards that havea minimum payment of $50 per month total, his DTI calculation would look like this

$200 (car)+ $50 (cc) + New home payment / $3000 …… should be between 40% and 50%

Be sure when you estimate your new home payment that you include the monthly amount for property taxes, insurance, and homeowners association dues (if any).

So if John’s DTI is 50%, then his house payment would be $1,250 ($1,250 + $250 / $3000 = 50%)

Typically John is going to be pre-qualified by a bank to purchase a home with this DTI if his credit score is above average. If his score is average or below average, then he will likely need his DTI to be closer to 40% rather than 50%.

** Don’t forget that this is the method by which most banks will determine how much home you can afford and you might choose to buy a smaller home if your personal budget determines that you should. Contact Andy Holloman, Carolina Mortgage Consultants, with any additional questions about mortgages at 919-439.3904 or email andy@carolinamortgageconsultants.com.

If you need a real estate agent to help you with the purchase or sale of a home, contact Michelle Edwards, Keller Williams Realty at 919-306-1639 or email michelle@cmetobuy.com.

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Mortgage Minute -When is the right time to refinance?

July 30th, 2008

Parks and Recreation in the Raleigh North Carolina Area

July 28th, 2008

How Much House Can You Afford?

July 7th, 2008