The wildly popular TV show, ‘Extreme Home Makeover’ paid a visit to the Charlotte area this past week as Ty Pennington and his crew descended on 4214 Sudbury Road in the Windsor Park neighborhood. The 1,900 ft2 home was replaced with a 5,100 ft2 abode all within106 hours of hard, sweaty labor.
Temperatures ranged in the mid-90′s and given the humidity here in the Carolinas, we know it was a muggy affair.
The King family pulled up at about 3:17pm yesterday, fresh off a gifted vacation to Puerto Rico, and the crowd began chanting the customary phrase that’s become part of the show, “Move that bus!” And sure enough, off went the bus revealing the freshly completed gem of a house.
The King’s run a daycare and according to Curtis King, the husband, the size of the business doubled from being able ot have 12 tots under care to 24.
In terms of an estimated value of the property it’s difficult to determine because there really aren’t any comparable properties against which to get a clear picture of the home’s value in it’s location. Howerver, many Charlotte real estate experts projected that if the home were located in Myers Park or Dilworth, 2 older but upscale areas of Charlotte, the value of the home would be somewhere between $800K to $1MM.
Now, my husband and I do watch the show and one of the biggest questions we’ve always had was ‘how does the family pay for the added taxes, electricity, water, gas, etc.?’ Well, according to the article in the Charlotte Observer:
“Most family mortgages are paid off,†says Didiayer Snyder, one of the designers on the Charlotte build. Also, money is put in escrow for things such as taxes, power bills and other expenses. What’s given to the King family won’t be known until the show airs.
Well, I’m happy for the King family and as always, am glad to see ABC do such a great job of reaching out to the community and helping worthwhile families that need a hand. It’s too bad there aren’t more big name companies doing more of the same.
Filed under Carolina Real Estate, Charlotte NC, Fun Stuff by 
On Wednesday, July 30th President Bush signed into law a new housing relief law aimed at helping out the nation’s struggling housing market and those homeowners affected by it. The bill is intended to rescue about 15% of the homeowners that are in danger of losing their homes to foreclosure.
While it can be a bit confusing to disect what exactly this new bill includes, I found a great resource on CNBC.com that breaks down the benefits. Here are some of those benefits:
- All homeowners who do not itemize their income taxes can deduct between $500 and $1,000 from their 2008 federal taxes.
- Anyone buying a first home between April 9, 2008, and July 1, 2009, will receive up to $7,500 in federal income tax credits.
- Homeowners struggling to make payments on high-interest mortgages can contact their banks and transform their loans into government-backed, 30-year fixed-rate mortgages. To qualify for this break their mortgage debt-to-income ratio must be greater than 31 percent.
- First-time buyers or homeowners with subprime mortgages in some states can qualify for low-interest loans or refinancing under a provision allowing states to offer an additional $11 billion in tax-free municipal bonds to pay for such housing projects.
- Homeowners strapped for cash will be able to receive preforeclosure financial counseling and legal services.
Now, not everyone qualifies for these breaks it is a good to see some steps being taken to help the millions that have been affected most by the shady lending tactics that are one of the causes of the current housing and financial slumps.
Stay tuned because in the next few days I’ll share some tips for making sure you’re not getting in over your head when it comes times to getting a mortgage for your new Rock Hill, SC or Fort Mill, SC home.
Filed under Credit Repair, Interest Rates, Mortgage Rates by
With all the news these days about the mortgage crisis, it’s easy to get discouraged and think it’s not a good time to buy real estate. Fortunately, it doesn’t have to be as scary as all the talking heads would have you believe IF you’re smart about it.
Now, while I’m no mortgage expert and I strongly encourage you to consult with your own financial professional, if you’re considering buying a new home in the Rock Hill SC or Fort Mill SC area anytime soon, here are 5 questions that will make the process go much smoother and also give you the peace of mind knowing you’re making a good decision for you:
1. What types of mortgages do you offer?
There are 2 types of mortgages that are most common, the fixed-rate and the adjustable rate (ARM). Just as its name states, the fixed-rate mortgage stays constant over the life of the loan, which means if you stay in your home for the next 30 years you’ll pay the same rate 30 years from now. When compared to rates historically, in spite of all the ups and downs, rates are still very low so locking in at today’s rates is still a very smart move financially.
ARM’s on the other hand are what’s caused much of the mortgage mess we find ourselves in today. An ARM is basically a mortgage that starts out at one rate, but depending on what’s happening with interest rates, it adjusts either up or down. While an ARM could be a good solution if rates are low, when interest rates start going up (like what’s happened over the last 18 months or so) you could get squeezed by higher monthly payments.
So, when deciding the type of financing you want, be sure to consider current interest rates and the length of time you plan to live in the home.
2. What’s the interest rate and APR?
The interest rate basically tells you what your monthly payment will and how much it’ll cost you to borrow the money over the life of the mortgage. Again, the interest rate on a fixed-rate loan will never change while an ARM could adjust up or down each year depending on what the current market is doing.
The APR (annual percentage rate) takes into account fees charged by your lender, which makes this one a bit more difficult to calculate. Especially if you go with the ARM. The key to understanding this is to know how frequently it can adjust and by what percentages.
3. Are there discount points or origination fees?
Occasionally you’ll come across a lender that will let you pay discount points, which is a fee you pay to reduce the interest rate. If you plan to stay in the home for a lengthy period, it is definitely an option worth considering because when you lower the overall interest rate, you lower the amount of interest you have to pay over the life of the loan.
Origination fees are fees charged by your lender to process your application and secure the loan. In some cases, this is the way your lender makes his money, but there are some ‘no fee’ mortgage lenders available, so be sure to check around. Fortunately for you, any origination fees you pay won’t affect the interest rate you end up paying.
4. What will my closing costs be?
These are the fees you pay at the closing table and could include things like appraisals, credit reports, or any other items you’ve agreed with the buyer/seller to pay. Be sure to ask your lender for a ‘good faith estimate’, which they’re required to do by law within 1-3 days of receiving your application.
Remember, these are fees you’ll have to pay at the closing table so be sure to come prepared with a certified check for the amount your lender tells you.
5. Can I take advantage of rate locks?
Because interest rates rise and fall on a daily basis, you want to be sure to lock in the lowest interest rate as soon as possible, especially if it appears they may be going up soon. Be sure to ask your lender if they charge you a fee to lock in rates, how long the lock is good for, and if you can get it in writing. Also, some lender allow you to ‘lock and shop’ which means you can lock in a rate, but still have the opportunity to shop around for a lower rate. Be sure to ask your lender if that’s a possibility as well.
Again, finding funding for your Rock Hill real estate or home can be a pretty intimidating task, so knowing what to ask will certainly help you be a more informed consumer. Tomorrow I’ll share a few more questions you can ask so when you do speak with a lender you’ll be fully educated and ready to make a wise decision!
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Do you know someone looking to buy or sell a home in the Rock Hill SC, Fort Mill SC, Tega Cay, York SC, or Lancaster SC areas? Why not tell them about my ’90 days or less’ guarantee for selling a home and my ‘Right House, Right Price, Everytime’ guarantee for buying a home?
I have the knowledge of the area and the experience necessary to help you avoid all the stress and hassles that come along with buying or selling a home in the Rock Hill SC area. Send me an email or give me a call today and let’s begin the process!
Filed under Fort Mill SC, Home Buyers, Interest Rates, Mortgage Rates, Rock Hill SC by
After a long, painfully slow off-season the Carolina Panthers are finally ready to get back on the playing field as they’ll take on the Indianapolis Colts tomorrow night at Bank of America Stadium. Kick-off is scheduled for 7:30pm.
If you can’t be at the stadium you’ll be able to watch the game on TV on the Panther’s TV Network. It will also be on the radio on WBT.
For a breakdown of the game, visit the Panther’s website at www.Panthers.com.
Go Panthers!
Filed under Carolina Sports Beat, Charlotte NC, Fun Stuff, Out and About in the Carolinas by
To continue with the post I made a few days ago, I wanted to give you a few more questions you should ask your mortgage lender to ensure you’re not being taken for a ride.
What’s my minimum required down payment?
This one’s kind of important since it will tell you exactly how much money you’ll need to put down in order to get into your dream home. Different lenders have different requirements, as do different lending programs, so the only way to find out is to ask.
Will there be prepayment penalties?
This is another big one since many people plan on paying off their mortgage early. It’s much better to find out right now if you’re going to have to worry about paying prepayment penalties for getting it paid off early, than to breathe that big sigh of relief as you write what you think is the last check, only to find out you’re going to get hit with massive penalties.
How long will it take to close the loan?
The average closing is typically between 30-45 days from the time the final offer is accepted, but it is possible to close much faster. It really comes down to all pertinent parties involved, the buyer, the seller, and the lender. If you need to close in 10 days, even though it’ll be a mad dash to the finish, it’s certainly a possibility so be sure to ask your lender how quickly you can take care of things.
Is there anything that might delay my loan?
This is a question that will help you avoid a lot of stress, head aches, and heart ache during the loan origination process. Asking your lender what they need upfront, and then following up to find out if there’s anything that might delay the load is simply a good idea so you can avoid any unnecessary delays in getting to the closing table.
What documentation will you need?
This is another one that will simply save you time, headeaches, and hassles as the lender works through their process. Also, it’s extremely important (and relevant) for you to stay in touch with your realtor during this time in case something comes up that they need you to provide. Although you should have a good indictation as to what documents might be missing.
Overall, the process of buying or selling a home can be quite stressful. But being an informed consumer can really help you feel more confident about the process AND make sue you’re banking a good future.
Filed under Carolina Real Estate, Credit Repair, FSBO's, Home Sellers, Marketing, Mortgage Rates by
