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Nov
08
Posted by Matt Thomson
Beware of foreclosure predators. Those who are trying to take advantage of the fear that’s still prevalent surrounding foreclosures. People who prey on others’ fears and perhaps lack of information regarding their house payments.
I received a letter in the mail today that begins, “Records indicate that you are currently in default on your mortgage. Your lender may be in the process of foreclosure proceedings.” It’s a very official looking letter. They have my address, they refer to the government stimulus act, they make it look similar to an IRS form. They provide sample payments that their plan can get me and give me a 1-800 number to call or a website to visit.
It’s easy for me to see how an elderly person or widow or anyone who may not be completely up to date with their finances could be fooled by this letter and sent into a panic. This kind of thing drives me nuts. Far too often in my business now I’m encountering folks who are fearful about the housing market, and folks like this choose to prey on that fear rather than do something worthwhile with their lives.
Please, if you get a notice like this, call a local Realtor or mortgage professional first. Don’t become a victim of these jerks. Fear isn’t a good decision maker.
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Oct
25
Posted by Matt Thomson
When buying a new home, “closing costs” are often an area of confusion. I believe that the best bet is to contact a local mortgage broker (in the Gig Harbor area I’d recommend Bill Hannon of Republic Mortgage) and get an accurate understanding of all of your closing costs. For those who may not be ready to take that step just yet, take a look at the video below from WAR that gives a nice overview of closing costs.
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Oct
21
Posted by Matt Thomson
When buying a home, many people just look at the list price and don’t factor in the effect of interest rates on a home’s affordability. Interest rates play a far more drastic role in home affordability than you may realize. If you’re looking to buy a home in Gig Harbor (98335, 98332, or 98333) or Port Orchard (98366 or 98367) take a look at this video from WAR and then give me a call. I’d be happy to help you find that dream house while the rates are still in your favor!
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Sep
24
Posted by Matt Thomson
On Wednesday, Sept 30 there will be a FREE Home Buyer’s Seminar at the Gig Harbor Library on Pt Fosdick Dr. If you have thought of buying a home in the Gig Harbor area but have questions about the process, how to get financing, the Federal Tax Credit, or anything else, this will be a great evening for you.
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Oct
14
Posted by Matt Thomson
“Seller buy down” is becoming a more and more common phrase in the real estate industry these days. What exactly does it mean? I’ll give you the basics, and if you really want to delve into the specifics I urge you to contact Bill Hannon at Pierce Commercial Bank.
A “seller buy down” is basically a contribution that the seller makes to the buyer where they give a specified sum of money to the buyer’s bank. This money “buys down” the buyers’ interest rates. Sellers are no longer able to contribute money towards a buyer’s down payment, but they are still able to give up to 6% (depending on the loan program and down payment amount) towards the buyer’s closing costs. Part of this money can include “buying down” an interest rate.
There are permanent buy downs and temporary buy down programs. Let’s look at an example to see how much money this can save you as a home buyer. Let’s take the property I have listed for sale (look in the right hand scroll bar) at 1206 Moorlands St in Tacoma. That home is offered at $269,950. If you as a buyer came in with 3% down ($8098.50), you’d have a loan amount of $261,851.50. At a 7% note, your monthly payment would be around $1742,17. If the seller was willing to “buy down” your rate on a 2:1 buy down (2% the first 12 payments, 1% the next 12), your payment would drop to $1405.73 for the first 12 (a savings of $336.44 per month!), and $1569.99 for the next 12 payments (for a total savings of $6103.44 the first 2 years!).
Amazing the difference that interest makes, isn’t it? My seller is offering a 2:1 buy down, by the way! That means that many folks who are renting in Tacoma could likely afford to buy this house for the same or less than their current rent! Again, this is a possible scenario…please contact Bill Hannon or a loan officer of your choice for specifics and full information. If you’d like more specific information on my Moorlands home and how a buy down could benefit you, please let me know.
Click on the image to read it in larger print.
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