Join Toni as she discusses the steps to building a custom home with guests, Brian Popp of Union Home Mortgage and Marcus Smith of Smith Custom Homes.Web Page 1
Another reason to own a home: Cheaper car insurance
WASHINGTON – Feb. 17, 2016 – Major auto insurance companies charge good drivers as much as 47 percent more for basic liability auto insurance if they don’t own their home, according to a new analysis of premiums by the nonprofit Consumer Federation of America (CFA)
Based on a sampling of insurance quotes across the country for a 30-year old safe driver, CFA found that premiums averaged seven percent higher – about $112 per year – for people who rent rather than own. Liberty Mutual penalized renters most with an average higher premium of $307 per year (19 percent).
CFA criticizes the higher auto rate charged to renters, noting that many are low- and moderate-income Americans. According to Federal Reserve Board, the median income of renters in the U.S. was $27,800 in 2013 compared with $63,400 for homeowners.
“A good driver is a good driver whether she rents or owns her home,” says J. Robert Hunter, CFA’s insurance director.
For the analysis, CFA tested rates for minimum limits liability coverage in 10 cities from the nation’s largest insurers – State Farm, Geico, Allstate, Progressive, Farmers, Liberty Mutual and Nationwide. It solicited premiums through company websites in each city for a 30-year old female motorist with a perfect driving record and a 2005 Honda Civic. The only characteristic altered during the testing was whether she owned or rented her home.
CFA says the rate varied noticeably depending on the insurance company.
“For example, Allstate charged renters in Tampa 19 percent more than it charged homeowners; Liberty Mutual charged Baltimore renters 23 percent more and 26 percent more in Newark; and Farmers Insurance charged renters in Louisville 47 percent more ($768) than homeowners for a basic auto insurance policy,” according to CFA.
Geico was the only company that did not consider homeownership status.
The only premium decrease for renters was in Chicago, where Allstate lowered rates by 11 percent for renters compared with premiums charged to homeowners.
© 2016 Florida Realtors®
A Simple Way to Break Down a Mortgage Payment
Brought to us by The Miller Team at VanDyk Mortgage
This great blog post by Steve Bergsman with Inman News discusses the FHA 203k loan program which is a little known loan program offered by the Federal Housing Administration. In this discussion, Steve compares the actual cost of maintaining a new construction home versus a distressed property, such as a short sale or bank foreclosure. In his blog, he visits the terms of the FHA 203k loan and how it could benefit a purchaser of a distressed home by incorporating remodeling and repair expense with the actual mortgage.
In an effort to help veterans secure the lowest fixed interest rate available, the VA started a Streamline Refinance program called Interest Rate Reduction Refinance Loan program (IRRL). This loan option is a way for current VA homeowners to lower their interest rate with very little or no out-of-pocket costs. These refinance loans are done with very little effort and can help veterans start saving immediately.
IRRL allows you to refinance your mortgage to a lower interest rate. This is only available to veterans who used their VA eligability when initially purchasing their house, The IRRL program lets you refinance your mortgage with very little or no out-of-pocket expenses, as well as take advantage of these great benefits:
- No Appraisal Required
- No Credit Check required (unless the payment will increase 20% or more)
- No upfront application fee collected
- No income documents required (unless the payment will increase 20% or more)
- Skip up to two monthly payments
Visit the official Government site which explains, in great detail, this VA program and how it can work for you.
Finding out how much you can be approved for and what your actual rate might be has never been more difficult. There are many factors these days with all the Federal changes such as Type of loan, Loan Term, Loan amount, Down payment, Credit Score, Fees, State, etc!
Sure, you can get a rough idea of where rates are from the Internet, but from lowest to highest on any given program, there can be at least a 1% difference in rate which is roughly $90 month on a $150,000.00 Loan. That’s not even including additional fees or rate increases that may apply to your personal situation.
While rates are obviously important to all of us, they are truly secondary to having a “LEGITIMATE” Pre approval. Credit scores, debt ratio’s, down payment, time on job, cash reserves after the purchase are all critical factors affecting a true “loan Commitment”.
I encourage you to contact a seasoned, “LOCAL” Mortgage Professional and share some information so you will know what your reality will be with no surprises. IF you do not have someone you Know Like and Trust, I do and am happy to refer someone to you with no pressure, obligations or up front fee’s.
When you see a calculator like the one below – remember what I’ve told you….
- Shopping for a Mortgage (pcunning.wordpress.com)
There are dozens of Government funded home ownership programs that provide eligible home buyers with financial assistance toward the purchase of a home. The GoToni.com Team is committed to providing the most useful tools to guide you on your path to home ownership. GoToni.com has established relationships with area lenders with whom they have confidence and who participate in many of the home ownership programs in the Greater Tampa area.
By clicking on the image, you will have access to the many government programs that are available to you if you qualify. There is no obligation and your information is completely confidential. Neither Down Payment Resource or GoToni.com will have access to your private information. GoToni.com will only contact you if you elect to have them do so.
If you have questions right now, simply fill out this form and we will get back to you right away!
If You Are Underwater – You Must Click This Link
The choices for homeowners underwater has been dismal at best. The homeowner could refinance under the Home Affordable Refinance Program (HARP) adopted in 2009. However to qualify, the home’s value could not be less than 25% below what the homeowner owed on their mortgage. So, for those whose home values had fallen in excess of 25%, the only options remaining are the short sale or worse, the foreclosure.
Short Sales could work in many cases but what about the homeowners who really wanted to remain in their homes? What if you could refinance even though you owed more than your home is worth? What if your 6% interest rate could be reduced to 4.5%?
The article attached in the link above includes important questions and answers about the program including how to check homeowner qualification.
Local Market Report, Second Quarter 2011
Published by the National Association of REALTORS®
- Drivers of Local Supply and Demand
- New Construction and Foreclosure Inventory Impact on Resale Homes
- Mortgage Delinquency Rates, Local vs. National & more
If you appreciate the information provided in this report, you can subscribe to your own customized Market Snapshot. In the Market Snapshot you can specify a location to analyze by city, zip code, or even neighborhood. The report will provide all sales information to include the list to sales price ratio. You can also identify what properties are bank owned or short sales in your specified target area. The report provides detailed community information such as area industry impact, school information, and much more.
Get Your Free Report with No Obligation
The interest rate of a mortgage has a direct effect on a the amount a home buyer can spend on a home. For example, at today’s interest rates a buyer may be able to afford $150,000. But if the rate were to increase by one point, that same buyer may only be able to afford $125,000.
Interest rates are at their lowest point in history. The demand for money is in decline because of the economy. I found a great article by J.D. Roth with Get Rich Slowly, Personal Finance that Makes Sense that describes, in better detail, how the economy has impacted our current interest rates.
It is likely that interest rates will increase in the next two years. No one has a crystal ball, but with the value of the dollar also in decline it is likely we will see inflation and with inflation comes higher interest rates on loans. Purchasing a home now with a fixed rate loan while interest rates are low will ensure the avoidance of this pitfall.
What About House Values?
Another concern many potential buyers have is whether or not the market has hit bottom. Buyers do not want to buy a home only to see its value decrease in the coming years. I feel it is likely the market will be somewhat unstable for another few years and would not encourage anyone to buy a home if they feel they will have to sell in less than five years. Those who expect to be in their new home in excess of five years will likely see a turn in the market before they are in a sales scenario.
Make the Best Choice
Each individual scenario has its own best choice. With interest rates making such a large impact on buying power and monthly mortgage debt, I recommend purchasing versus renting if the need for housing is immediate and the intended occupancy is in excess of five years. I do not believe the current interest rates would have a beneficial effect on anyone who may need to sell their home in the next several years.
- Interest Rate Hike (ecopackindia.wordpress.com)
- How much do interest rates affect home prices? Hop in the time machine to see (sfgate.com)
- Mortgage rates on the rise. Why? (hsh.com)