…”SO is it over? The three-year period of unrelenting home price declines: has it stopped? And is it possible that sales prices will go the other way in 2010?
Archive for the 'NJ Mortgage Update' Category
Optimism for NJ Real Estate in 2010
January 14th, 2010 Categories: Buying a Home in NJ, Commuting to NYC, NJ Mortgage Update, Real Estate News, Selling A Home in NJ
There is optimism in the air about the NJ real estate market for 2010 as reported in The New York Times by Antoinette Martin on January 10th.
…“Every county has its own story,” said Mr. Otteau, (market analyst, whose Otteau Valuation Group continuously tracks sales data in 21 counties for real estate companies.)
…Several brokers said they did not even think of real estate markets in terms of county lines. Perri K. Feldman, an agent with Keller Williams Realty, sees her primary turf as being towns running along the Midtown Direct Train line from Morristown to South Orange (Morris to Essex County).
Prices rose in that area late in 2009, Mrs. Feldman said; she originally saw a rush to meet the Nov. 30 deadline to ensure eligibility for a federal income tax credit. That federal stimulus program has since been extended; now buyers have until April 30 to enter into a contract for a new primary residence and June 30 to close on the home.”
What does this mean for you as a buyer in this market? If you see a home you like…Put in an offer NOW!!!
We are already seeing homes moving quickly in 2010 in South Orange, Maplewood, Millburn/Short Hills, Summit, Chatham and Madison.
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First Time Home Buyer Tax Credit Extended…
November 5th, 2009 Categories: Buying a Home in NJ, NJ First Time Home Buyers, NJ Mortgage Update, Real Estate News
IT’S OFFICIAL!!!!….
THE TAX CREDIT HAS BEEN EXTENDED AND EXPANDED
Well…almost…
(President Obama still has to sign it, which he will)
Per Martin Straka, Mortgage Loan Officer with Bank of America:
On Thursday afternoon (11/5/090 the House of Representatives voted to pass the legislation extending the Tax Credit and Unemployment Benefits (HR 3548).Homebuyer Tax Credit: H.R. 3548 extends the $8,000 tax credit for first-time homebuyers for five months, from November 30, 2009 to May 1, 2010. In addition, the bill provides a $6,500 tax credit for homebuyers that are not first time buyers, but have owned a primary residence at least five consecutive years in the last eight years.
The bill would cap the eligibility for the credit on homes that cost $800,000 or more and raises the current income limit from $75,000, or $150,000 in the case of a joint return, to $125,000 or $225,000. H.R. 3548 waives provisions to recapture the credit for military, intelligence, and Foreign Service personnel who are on qualified official duty and extends the tax credit for an additional year for those on qualified extended duty overseas for 90 days or more since 2008.
The full $8,000 tax credit will be available to qualified First Time Home Buyers (FTHB), defined as not having owned their “Principal Residence” within the past 36 months. This means that even if you have owned a vacation home or an investment property, you may still qualify for the FTHB Tax Credit. The amount of the Tax Credit is 10% of purchase price up to a $80,000 purchase price and then the total is capped at $8,000.
In the past few months, the Tax Credit has inspired many home buyers to stop waiting for “the bottom” of the housing market and to act now to take advantage of the great home prices in conjunction with near record low interest rates.
For those of you that like to read the details If you prefer, give Martin Straka a call at 973.598.5006 or email Marty
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2009 Housing Tax Credit Ends in Ninety Days
August 30th, 2009 Categories: Buying a Home in NJ, NJ First Time Home Buyers, NJ Mortgage Update
You only have three more months
to take advantage of the 2009 Housing Tax Credit.
Still Confused as to whether you qualify?
There are still many opportunities to purchase an affordable home
along the Midtown Direct Train line in New Jersey.
If you want additional information about real estate in
South Orange, Maplewood,Millburn/Short Hills,
Summit, Chatham, Madison, Livingston or West Orange…
Contact Perri K. Feldman @ 973.650.4727
or Perri@MidtownDirectHomes.com
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Home Buyer Tax Credit Ends Dec 1st
June 23rd, 2009 Categories: NJ First Time Home Buyers, NJ Mortgage Update, Real Estate News
Did you know that the Home Buyer Tax Credit can now be used for closing costs with FHA-approved lenders?
But ”first-time home buyers” only have until December 1, 2009 to purchase their principal residence to take advantage of the credit.
The National Association of Realtors (NAR) has a very valuable website: http://www.housingmarketfacts.com/ with easy to understand question and answers for first-time New Jersey home buyers.
With historically low interest rates today (yes we are seeing them start to creep up!) and affordable housing prices in the key Midtown Direct communities of South Orange, Maplewood, Millburn/Short Hills, Summit, Chatham, Madison, Montclair, Glen Ridge and Westfield, as well as Livingston, West Orange and Springfield…
NOW IS THE TIME
FOR FIRST TIME HOME BUYERS
TO TAKE ADVANTAGE OF
NEW JERSEY HOME OWNERSHIP!!!
New Jersey Homes for Sale
Contact Perri K. Feldman for more information
about Homes for Sale Along and Adjacent to the Midtown Direct Train.
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New Jersey Mortgage Rates Plunge
November 29th, 2008 Categories: Buying a Home in NJ, NJ First Time Home Buyers, NJ Mortgage Update
Finally, some good news for New Jersey home buyers near the Midtown Direct Train line.
In a move to increase credit availability, the Federal Reserve and Federal Home Loan Banks announced that they would purchase up to $600 billion in Mortgage-Backed Securities (MBS), exciting news that sent interest rates for 30-year fixed-rate mortgages plummeting below 6.00% and near the lows for the year!
If you have been on the fence about buying or refinancing a home in a New Jersey community along or adjacent to the Midtown Direct Train line, now is the time to act.
Interest rates are extremely low and home prices in some areas are at 2003-2004 levels. Add to that recent declines in energy prices and lower consumer interest rates, and you have a great holiday recipe for success, but only if you give your favorite Midtown Direct realtor a call @ 973.650.4727.
Don’t wait until next week. Call today and we will help you get pre-approved. Rates have already been very volatile and this opportunity might not survive the holidays.
Falling prices are bringing out home buyers that have been waiting to buy near the Midtown Direct Train for the past twenty-four months. They are scooping up both bargains and hot properties.
This is the time for Great Home Buying Opportunities in New Jersey’s Essex, Morris & Union Counties.
Call Perri K. Feldman if you want to learn more about Midtown Direct real estate: South Orange, Maplewood, Millburn, Short Hills, Summit, Chatham, Madison, Morristown, Livingston and West Orange 973.650.4727 or email Perri@MidtownDirectHomes.com
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How NOT to Mess Up Your NJ Mortgage
November 17th, 2008 Categories: Buying a Home in NJ, NJ First Time Home Buyers, NJ Mortgage Update
Those last few days before closing on a new home in New Jersey can be nerve wracking.
I asked Tom Wragg (First Choice Bank) to put together this list for my first time home buyers in New Jersey:
From Contract to Close: How NOT to Mess Up Your NJ Mortgage
In this environment, it is important to adhere to the following guidelines in New Jersey in order for your mortgage company to maintain your mortgage until closing:
- Keep in Touch with your Mortgage Banker
- Make them aware of any significant changes in income, assets or employment
- You should be speaking with your Mortgage Banker at least once a week when you are in process
- Keep your Mortgage Banker informed
- Let them know everything so they can preserve your transaction
- Communication is the key to any successful relationship
- Don’t make any large deposits into the bank without telling your Mortgage Banker
- Gifts are OK as long as underwriting knows about it
- Tell your Mortgage Banker in advance if you plan to make any deposits that don’t match your standard cycles
- Keep Your Job
- Quitting your job or getting fired when you are trying to buy a house in NJ is a No-No
- Getting a new job in the same industry is generally OK
- You Must tell your Mortgage Banker immediately
- No Big Ticket Purchases That Will End Up on Your Credit Report
- Any automobile, second home, investment property or business investments should be run by your Mortgage Banker as this could effect the total amount of the mortgage you qualify for
- Make sure to tell your Mortgage Banker if you plan to buy something, with financing, during the mortgage process
- Sell Your Current Home Before Buying the Next One
- Make every effort to either sell or rent your current home as lenders are now adding contingencies for sale or rental of your current property before they will allow you to buy the next one
- If your sale falls through, if you cannot sell or if you cannot rent out the current property you MUST tell your Mortgage Banker
- Don’t Move
- If you are planning to move residences before you close on a mortgage you MUST tell your Mortgage Banker
i. An unannounced change in address is a red flag for mortgage companies and underwriters
ii. If you are planning to move before you close you MUST tell your Mortgage Banker
- If you are planning to move residences before you close on a mortgage you MUST tell your Mortgage Banker
- Raises and Bonuses are OK
- If you get a raise or a bonus you MUST tell your Mortgage Banker
- Increased income is excellent and fantastic and can sometimes get you a higher loan amount in NJ or better your underwriting scenario
- Share this information with your Mortgage Banker
- Do Not Apply Elsewhere
- If you plan to apply for more than one mortgage you should tell your Mortgage Banker
- No one wants to work for nothing – making multiple applications without telling your Mortgage Banker is dishonest and selfish
- Apply with one lender and make it stick – don’t waste people’s time by deciding to go with another lender at the very last minute
- Shop for Homeowner’s Insurance
- Getting a good rate on Homeowner’s Insurance is a must
- Make sure you are comparing different quotes and different coverage levels depending on your needs
- Make sure you get a copy of the Declaration Page and the Paid Receipt to your Mortgage Banker
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Understanding the Credit Crisis
October 4th, 2008 Categories: Buying a Home in NJ, NJ Mortgage Update, Selling A Home in NJ
Steve Lupton of MetroCities Mortagage just shared this take on our current “credit crisis” to help you understand WHY.
“The Chinese have a proverb: “May you live in interesting times.”
And we are living through interesting times indeed.Whatever the political posturing regarding the rescue plan, a plan needed to be passed. Credit markets are frozen and banks are going bust every day. This is not totally because of “toxic” mortgages. This has a lot to do with FASB 157, also known as “mark to market”.
Each day, lenders must mark their assets to the marketplace. It’s like you having to appraise your home everyday and, if your neighbor was under duress because she got very ill, divorced, lost her job and was forced to sell her home quickly, she may have sold it super cheap. Now, does that mean your house is worth that super cheap price, too? Clearly not. Why? Because you are not under duress. You have the time to sell your home and get a more normal price, which more accurately reflects true market conditions. But “mark to market” does not allow for this, which creates a vicious cycle.
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Avoiding Foreclosure in New Jersey
March 10th, 2008 Categories: NJ Mortgage Update, Selling A Home in NJ
Steve Lupton of MetroCities Mortgage just passed on some excellent words of wisdom if forclosure is around the corner for your New Jersey Home.
Here is some advice for Homeowners & New Jersey Real Estate Agents:
Few things are as devastating as losing your home. Sadly, it’s not always inevitable. In many cases the foreclosure could have been avoided with some outside help.
You are in a unique position to advise your clients in financial matters. If you know that a client is on the path toward foreclosure, take the time to show them how it can be avoided. First, remind them of some of the hidden difficulties that will arise if foreclosure occurs.
1. Finding a new home. Don’t let your clients believe that it will be better to let the foreclosure happen, because after they lose their home, they will still need to find a new place to live. All too often, the price they will need to pay in rent will be almost as high if not higher than their current mortgage payment.
Remember: The owner of the property needs to make his mortgage payment, too, so he’s going to charge a rental payment that’s higher than his mortgage costs.
2. Deficiency judgment. It’s not uncommon that the sale of the home is insufficient to cover the remainder of the mortgage. When the property has been damaged, or market values have dropped, the owner may end up with a bill in the tens of thousands for the difference.
Despite what many people think, most lending institutions are not anxious to foreclose. It’s a last-ditch effort to recover their money and minimize their losses, and it’s an incredible hassle. Most lenders would rather avoid it, if possible. There are multiple sources for help that your client should be aware of, and most lenders will be happy to hear that their clients are going to try to keep their home rather than just await a foreclosure. Read the rest of this entry »
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Will NJ Home Buyers Benefit From New Loan Limits?
March 8th, 2008 Categories: Buying a Home in NJ, NJ First Time Home Buyers, NJ Mortgage Update
New Jersey Home Buyers should benefit from the new FHA and Fannie Mae-Freddie Mac conforming loan limits released by the US Department of Housing & Urban Development on March 6, 2008.
The new loan limits for FHA and Fannie Mae-Freddie Mac are now calculated at 125% of the HUD published median prices, with a floor of $271,050 and $417,000, respectively, not to exceed $729,750.
Use this link to find out the new limits in your area. This will take you to the “mortgage limits” page at the HUD website.
- On that page, enter your state and county information.
- Chose the type of loan from the “Limit Type” drop-down box: FHA Forward (HUD’s name for the temporary FHA loan limit), Fannie/Freddie or HECM.
- Then click the “send” button at the bottom of the page.
- On the results page, you’ll see the new loan limit for the type of loan you selected for your area.
Realtor.org also provides a county-by-county listing of the new loan limits here.
The impact of these loan limit increases on the New Jersey housing market could be significant. Lower interest rates across the board should result with this infusion of capital into the mortgage market. In addition, there will be a direct impact on high-cost areas of New Jersey (ie. Short Hills, Summit, Livingston) that previously required borrowers to take out costlier jumbo mortgages.
NOW is the time to Refinance or BUY A NEW HOME
in New Jersey.
If you need any New Jersey Real Estate advice please contact
Perri K. Feldman at 973.650.4727
or email Perri@MidtownDirectHomes.com
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Why Use a Wholesale Mortgage Banker?
February 20th, 2008 Categories: Buying a Home in NJ, Millburn & Short Hills Living, NJ Mortgage Update
Consider using a Wholesale Mortgage Banker for your mortgage this Spring. Why?
Wholesale Mortgage Bankers have access to two distinct sources of mortgage money:
- Secondary Market:
This source of capital comes from investors that invest in mortgage backed securities. Loans are originated then sold to Wall Street banks, bundled into mortgage backed securities and sold.
If a particular loan fits within FNMA’s guidelines they are then sold to FNMA. Since FNMA loans are a large percentage of the overall mortgage market, their 30 yr fixed rate is often the standard when rates are quoted. These rates are driven by the appetite that investors have for buying mortgage backed securities. Their rates are totally market driven.
In the last two months, the market has driven those rates from 6.375%, down to 5.25% and back up to 6.5%. This is a reflection of investor’s outlook for the future value of mortgage backed securities. Read the rest of this entry »
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