<![CDATA[ - Blog]]>Mon, 27 Feb 2012 08:30:52 -0600Weebly<![CDATA[Components of a Mortgage:]]>Wed, 20 Jul 2011 19:36:42 -0600http://www.theaustinrealestateexperts.com/1/post/2011/07/components-of-a-mortgage.html1. Mortgage Approval:

Qualifying for a mortgage requires meeting a pre-determined set of guidelines established by a lender, which may include credit history, income, employment and assets. In addition to personal qualifying factors, a property must also meet certain standards set by lenders before a borrower can obtain a mortgage loan secured by real estate.

2. Mortgage Payments

On a traditional 30 or 15 years fixed rate mortgage program that involves principal and interest, each payment made is divided into two parts (we’re not including taxes or homeowners insurance as part of this discussion): The first part of the mortgage payment, which is commonly referred to as principal, goes to paying down the initial amount borrowed.

The second part is the interest paid for the money borrowed to purchase the property. The amount paid in interest decreases each month, as the amount paid towards the principal balance increases. This apportioning is referred to as amortization.

Other types of mortgage payments available can include options for paying interest only or a teaser rate. Either way, it is extremely important to have a solid understanding of the full payment and terms before moving forward with a particular option.

3. Mortgage Programs

Mortgage Programs come in many different types of flavors and colors depending on the down payment and/ormonthly budget a borrower has been approved for. There are also federally insured mortgages, such as FHA or VA loans, which have more flexible qualifying guidelines.

4. Closing Costs / Fees

The actual cost of obtaining a mortgage mainly depends on whether or not the borrower is paying points for a lower mortgage rate.  In some cases, there are also other loan processing and underwriting fees associated with the work involved in the transaction.

Fortunately, there are several consumer protection policies implemented by the government to help borrowers understand their options during the initial mortgage pre-qualification process. However, please keep in mind that there may be other closing costs not associated with a mortgage or real estate transaction to be aware of.Appraisal, pre-paid property taxes, insurance and interest, HOA dues and inspections are a few additional out-of-pocket expenses you should budget for.

5.  Mortgage Rates

While mortgage interest rates may change several times a day, there are a few market factors you can pay attention to which may impact your final payment. Whether you’re shopping for the best rate, or trying to determine the difference between the Note Rate and APR, it definitely helps to understand what questions to ask a mortgage lender about your specific loan scenario.


FOR MORE INFORMATION GO TO UNITED LENDING ]]><![CDATA[Always choose an expert!]]>Thu, 28 Apr 2011 15:23:24 -0600http://www.theaustinrealestateexperts.com/1/post/2011/04/always-choose-an-expert.htmlThe best real estate agents know that in order to sell a house once, you must sell it twice.  Let's explain:

As you are aware, buyers (or their agent) search for homes that might be a good match before making an offer on one. They go online, pull fliers from yard signs, visit open houses or the agent previews homes for them. In our case we feature homes on TV!

Before buyers walk into a home, they must be convinced that it may be suitable for their needs and wants.  In other words, they must buy into the idea that they could buy the home before they actually buy the home. 

This is what separates great, full-service agents like us, from discount agents.  Most discount agents don't provide full color flyers, don't do open houses, don't offer staging/repair advice and don't use professional photographers, and we go all out by exposing your home on local television!  They generally don't sell your house the first time which makes it that much harder to sell your house the second time.

Also, put yourself in a buyer's shoes. If you hired an agent to help you find a home (as a buyer) and the one you liked was listed with a discount broker but priced at market prices, how would you approach your offer? 

Virtually all house price data is pulled from the MLS (which means that home prices have agent fees baked into them) and the large majority of homes sold are through a full-service agency.  So if the houses comparable to the house you want to buy sold for $200,000 and they sold with a full-service listing agent (seller paying 6%), the sellers netted $188,000 after agent fees.  

Would you pay $200,000 for that house, knowing the seller (listing with a discount broker) would take home $192,000?  Or would you negotiate that $4,000 to your favor (as a buyer)?  

If YOU know that the listing agent only charges 4%, so do the local buyer's agents.

ALWAYS CHOOSE AN EXPERT! ]]><![CDATA[Now That's Enough!]]>Fri, 15 Oct 2010 18:12:37 -0600http://www.theaustinrealestateexperts.com/1/post/2010/10/now-thats-enough.htmlEnough with the doom and gloom about homeownership.

Sure, maybe there's more pain to come in the housing market. But when Time magazine starts running covers that declare "Owning a home may no longer make economic sense," it's time to say: Enough is enough. This is what "capitulation" looks like. Everyone has given up!

After all, at the peak of the bubble five years ago, Time had a different take. "Home Sweet Home," declared its cover then, as it celebrated the boom and asked: "Will your house make you rich?"

But it's not enough just to be contrarian. 

So here are 10 reasons why it's good to buy a home:

1. You can get a good deal. 
Especially if you play hardball. This is a buyer's market. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. We're four to five years into the biggest housing bust in modern history. And prices have come down a long way– about 30% from their peak, according to Standard & Poor's Case-Shiller Index, which tracks home prices in 20 big cities. Yes, it's mixed. New York is only down 20%. Arizona has halved. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really matter so much in the long haul.

Where is fair value? Fund manager Jeremy Grantham at GMO, who predicted the bust with remarkable accuracy, said two years ago that home prices needed to fall another 17% to reach fair value in relation to household incomes. Case-Shiller since then: Down 18%.

2. Mortgages are cheap. 
You can get a 30-year loan for around 4.3%. What's not to like? These are the lowest rates on record. As recently as two years ago they were about 6.3%. That drop slashes your monthly repayment by a fifth. If inflation picks up, you won't see these mortgage rates again in your lifetime. And if we get deflation, and rates fall further, you can refi.

3. You'll save on taxes. 
You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you'll get a tax break on capital gains–if any–when you sell. Sure, you'll need to do your math. You'll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less, often a lot less, than renting.

4. It'll be yours. 
You can have the kitchen and bathrooms you want. You can move the walls, build an extension–zoning permitted–or paint everything bright orange. Few landlords are so indulgent; for renters, these types of changes are often impossible. You'll feel better about your own place if you own it than if you rent. Many years ago, when I was working for a political campaign in England, I toured a working-class northern town. Mrs. Thatcher had just begun selling off public housing to the tenants. "You can tell the ones that have been bought," said my local guide. "They've painted the front door. It's the first thing people do when they buy." It was a small sign that said something big.

5. You'll get a better home. 
In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos. Money talks. Once again, this is a case by case issue: In Miami right now there are so many vacant luxury condos that owners will rent them out for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you want the best home in the best neighborhood, you're better off buying.

6. It offers some inflation protection. 
No, it's not perfect. But studies by Professor Karl "Chip" Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if you're young and raising a family and thinking about the next 30 or 40 years. In the recent past, inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But yields there have plummeted of late. That also makes homeownership look a little better by contrast.

7. It's risk capital. 
No, your home isn't the stock market and you shouldn't view it as the way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities–for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy–if it happens–and still managing to sleep at night.

8. It's forced savings. 
If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won't. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. As a forced monthly saving, it's a good discipline.

9. There is a lot to choose from. 
There is a glut of homes in most of the country. The National Association of Realtors puts the current inventory at around 4 million homes. That's below last year's peak, but well above typical levels, and enough for about a year's worth of sales. More keeping coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice, as well as great prices.

10. Sooner or later, the market will clear. 
Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, this housing glut will work itself out. Many of the homes will be bought. But many more will simply be destroyed–either deliberately, or by inaction. This is already happening. Even two years ago, when I toured the housing slumpin western Florida, I saw bankrupt condo developments that were fast becoming derelict. And, finally, a lot of the "glut" simply won't matter: It's concentrated in a few areas, like Florida and Nevada. Unless you live there, the glut won't have any long-term impact on housing supply in your town.



Write to Brett Arends at brett.arends@wsj.com
]]><![CDATA[10 Markets Most Likely to Appreciate]]>Mon, 20 Sep 2010 13:40:05 -0600http://www.theaustinrealestateexperts.com/1/post/2010/09/10-markets-most-likely-to-appreciate.htmlForbes magazine turned to real estate research firm Local Market Monitor to figure out which markets have the greatest likelihood of price appreciation because they offer a mix of jobs weighted toward growth industries.

These are the top markets, the research company concludes:

1. Raleigh-Cary, N.C.
2. McAllen-Edinburg-Mission, Texas
3. Austin-Round Rock, Texas
4. Nashville-Davidson-Murfreesboro-Franklin, Tenn.
5. San Antonio, Texas
6. Colorado Springs, Colo.
7. Albuquerque, N.M.
8. Denver-Aurora-Broomfield, Colo.
9. Springfield, Mo.
10. Indianapolis-Carmel, Ind.

Source: Forbes, Francesca Levy (09/13/2010)]]><![CDATA[Buy your HOME!]]>Mon, 20 Sep 2010 13:38:07 -0600http://www.theaustinrealestateexperts.com/1/post/2010/09/buy-your-home.htmlHere is a compelling argument for homeownership, in general, from the Wall Street Journal. In spite of the dramatic downturn in the real estate market over the past few years, the article makes a very compelling argument for the permanent financial and emotional benefits of owning a home. From protection against the threat of inflation, to forced savings, to historically inexpensive financing, to simply getting the home you want, owning a home is still the best option for vast majority of people. It’s also still the best investment available for the average person, who wants a safe tie to the economic recovery, without reinventing his or herself as a stock market expert.

http://online.wsj.com/article/SB10001424052748703376504575492023471133674.html?mod=WSJ_PersonalFinance_PF2]]><![CDATA[Another KXAN mix up]]>Sun, 19 Sep 2010 22:42:35 -0600http://www.theaustinrealestateexperts.com/1/post/2010/09/another-kxan-mix-up.htmlFROM THE PRODUCERS OF THE AUSTIN REAL ESTATE EXPERTS:

We want to deeply apologize for yet another mistake on behalf of KXAN. They failed to air an episode of the show this Sunday Sep. 19th.

The Producers will continue to draw attention to the station's failings and we remind all of our viewers to give them a call or send us your comments so we can relay the problems with our airtime.

We do the best that we can but we have no control over the airtime broadcasting.

STAY TUNED NEXT WEEK FOR ANOTHER GREAT EPISODE AT IT'S REGULAR SHOW TIME. All scheduled times can be found here on our website or by searching your provider's TV guide channel.]]><![CDATA[THE TALE OF 2 MARKETS]]>Fri, 20 Aug 2010 22:02:19 -0600http://www.theaustinrealestateexperts.com/1/post/2010/08/the-tale-of-2-markets.html
Yes folks, the national real estate market and financial boogey men can be scary. But Austin is truly a tale of 2 markets. 

If the price of your dream home is less in 6 months than it is today, could it actually cost you more?
 
We know that some of you may be a little sensitive to four-letter words, but in this case we believe it will be necessary to use one. MATH! There. We said it. 

LET'S DO SOME MATH!
For a 30-year fixed-rate mortgage at 4%, you would pay $71,869.51 in interest over 30 years on a $100,000 loan. Raise the rate just 0.5 points to 4.5%, and you would pay $82,406.71 in interest over the same period -$10,537.20 more!  (Click here for current mortgage rates being offered.) 

Put it another way (more math!): 
Your monthly payments to borrow $100,000 for 30 years at 4% are are within $1 of borrowing only $94,000 at 4.5%.
 

LET'S SAY IT AGAIN

For ONE AMERICAN DOLLAR, you can get a stick of hash browns once a month from a fast food place or buy $6,000 more house. Amazing what math can do.
 
There may never again in our lifetime be a better opportunity to buy a home! We are not kidding! There are over 13,000 homes to choose from in the Austin area and rates are at historic lows.

SO WHY NOT CHOOSE A HOME WITH A TOP REALTOR AND THE #1 KELLER WILLIAMS TEAM IN AUSTIN. Karen Elliott can get help you get as close to those numbers as she can (she's good with math) and The Home Resource Group or Antonia Warren will help you find a great home!]]><![CDATA[FROM KEVIN ELLIOTT AND THE HOME RESOURCE GROUP]]>Sat, 17 Jul 2010 18:07:40 -0600http://www.theaustinrealestateexperts.com/1/post/2010/07/from-kevin-elliott-and-the-home-resource-group.html

Hello, Friends!

I hope your summer is off to a good start. I wanted to share some good news with you about the Austin economy. Forbes recently named Austin as the top metro area in the nation for economic growth. The magazine has projected a 32% increase from 2007 to 2012 in the gross domestic product and a 15% growth in population. 


The Texas Workforce Commission also recently announced that Texas created 24,000 new jobs in May. Austin created 4,000 jobs in May for a .5% positive job growth.


Homes that are staged well and priced well continue to sell past the end of the tax credit. The lowest interest rates in decades are providing huge incentives for buyers. You may not get the profit you planned for your house, but you have an opportunity to make it up on the other end when you purchase your new home. 


If you decide not to move, please work with a knowledgeable lender to refinance. We can provide a referral to a lender at your request. Everyone has a different idea about when interest rates will increase. No one disagrees that at some point interest rates will rise.


Don’t miss this lifetime opportunity to plan for you and your family.


Sincerely,

 KEVIN ELLIOTT Realtor

]]><![CDATA[WIMBELDON AND FOURTH OF JULY]]>Sun, 27 Jun 2010 13:27:55 -0600http://www.theaustinrealestateexperts.com/1/post/2010/06/wimbeldon-and-fourth-of-july.htmlTO OUR VIWERS:

WIMBELDON COVERAGE WILL PRE-EMPT THE AUSTIN REAL ESTATE EXPERTS UNTIL AFTER THE FOURTH OF JULY WEEKEND.

THE SHOW WILL AIR TUESDAY NIGHTS AS SCHEDULED ON KBVO. YOU CAN ALSO WATCH CLIPS AND FEATURED HOMES HERE ON THE WEBSITE AND OF COURSE IF THERE IS A TOPIC YOU WOULD LIKE THE EXPERTS TO COVER PLEASE EMAIL US AND SEND US YOUR QUESTIONS AND CONCERNS.

HAPPY SUMMER HOLIDAYS, KEEP LOOKING FOR GREAT HOMES IN YOUR AREA AND LET OUR EXPERTS GUIDE YOU TO YOUR DREAM HOME.]]><![CDATA[OUR NEW SEASON ON KXAN-NBC!]]>Thu, 03 Jun 2010 12:55:12 -0600http://www.theaustinrealestateexperts.com/1/post/2010/06/our-new-season-on-kxan-nbc.htmlWe are excited to bring you the new season of  THE AUSTIN REAL ESTATE EXPERTS. 

As we work to produce a new concept for the show we encourage you to stay tuned in the mean time for more episodes of past shows filled with valuable information you may have missed.

We will be returning toKXAN-NBC Sundays at 11:30amvery soon. We will also continue to broadcast in prime time at 9:30pm on KBVO.

Please continue to send us your questions for the panel of experts. We will answer them on the show. 

The experts are working hard and will be  proud to bring you home tours, tips, hints and helpful handy ways to improve your buying and selling potential for that new dream home all coming in our new season!

STAY TUNED IN AND MEET YOUR EXPERTS!]]>