Real Estate Wise
  • Real Estate Wise
  • About Us
  • Sellers
    • How do we help you make the wise move in selling your home?
    • PULL HERE TO SELL!
  • Buyers
    • How we help our buyers find their perfect home.
    • Search for your home
  • Make the Wise Move
  • Client Reviews
    • Places to review me

Mortgage insurance insight

12/12/2014

0 Comments

 
Picture
As I was driving into the office today, I heard a national mortgage company advertising lender paid mortgage insurance, and I thought about how misleading the ad was to the public.

So, here is an overview of mortgage insurance.

What is mortgage insurance?  Basically, mortgage insurance protects the lender if you default on your loan.  It is not home owner's insurance in any way, and really offers the home owner no protection at all.  For a conventional loan, it is not required if you are putting down 20%.  For an FHA loan, the MI is always required.  And, for conventional loans, it is actually Private Mortgage Insurance, which is why it is abbreviated as PMI.  For FHA and USDA, it is just MI.  

PMI and MI can vary in terms of cost due to the following factors:  Loan type, Loan Amount, LTV, and credit score.  

PMI can be removed after a minimum of two years if the loan to value hits 78%.  That can happen from additional principle payments or appreciation.  Either way, you will likely have to have an appraisal from the banks approved list of appraisers.  In fact, they will most likely order the appraisal themselves.  You will also have had to have on time payments for at least 24 months.  

One hitch with FHA loans is that the MI cannot be removed.....ever.  This is a recent change, that is often misunderstood.

So, what's with lender paid PMI?  The lender makes the interest rate higher to pay for the PMI.  It will usually result in a lower payment versus a payment with normal PMI.  The hitch comes in that your rate will be locked in higher.  So, if you were to keep the loan for the full 30 years, you would actually pay more than if you had PMI that could be removed.  

The point is that the lender isn't paying it for you out of the goodness of their heart.  You pay a higher rate.  It may be worth it.  You may be able to afford a larger, nicer, more expensive home with lender paid MI.  But, just know going into it that there are pluses and minuses to this loan product.

If you have questions, don't hesitate to call me at 678-992-3817.  If you have feedback, please leave it below!

And, as always,  "Make the Wise Move".

0 Comments

Breaking News: Fannie and Freddie formally announce 3% Down Programs

12/10/2014

0 Comments

 
Picture
Fannie Mae and Freddie Mac have formally announced their 3% down options on home purchases.

“The new lending guidelines released today by Fannie Mae and Freddie Mac will enable creditworthy borrowers who can afford a mortgage, but lack the resources to pay a substantial down payment plus closing costs, to get a mortgage with 3% down. These underwriting guidelines provide a responsible approach to improving access to credit while ensuring safe and sound lending practices.”  FHFA Director Mel Watt

Click here for details...

0 Comments

This Month in Real Estate December 2014

12/8/2014

0 Comments

 
0 Comments

The Real Estate Market Has Turned The Corner

12/5/2014

0 Comments

 
Picture
Let's take a look at the projections on the number of home sales (existing and new construction) we will see over the next two years.  Click here for the good news!

0 Comments

Large Majority of Homebuyers Believe They Are Better Buyers Because of Technology

12/3/2014

0 Comments

 

Did you know?  I am a Preferred 
5-star agent  with Trulia and Zillow!

Picture
Picture
Picture
Consumers use technology to do just about everything, including looking for and buying a home. A recent independent poll commissioned by Discover Home Loans shows 89 percent of homebuyers use some form of online technology to help them with the homebuying process. In fact, 76 percent of buyers feel technology made them a smarter homebuyer and 69 percent says it made them more confident.

A Better Buyer
Buyers who use technology during the homebuying process feel smarter, more confident and more satisfied.
  • Almost half of all homebuyers, 47 percent, report that using technology helped them save money.
  • As many as 92 percent say technology helped save time.
  • A significant amount of buyers (90 percent) report an overall positive experience.
Technology Use Addictive
While it’s no surprise nine out of 10 buyers, 89 percent, use online resources during the homebuying process, two-thirds say looking at online property listings has reached the point of becoming addictive.

The top three ways people use online resources in the homebuying process are:
  • Eighty-three percent look at real estate listings.
  • Seventy-two percent use online maps to explore neighborhoods.
  • Seventy-one percent use email, apps or websites to submit documents to lenders.
Among those who looked at online listings, 78 percent say they spent time at work looking at properties.

Nearly all, 93 percent, of technology users say technology allowed them to do things remotely they otherwise would have had to do in person.

“Buyers are clearly looking to play a larger role in the homebuying process and turning to the latest technologies to find the information they need,” says TJ Freeborn, senior manager of customer experience at Discover Home Loans. “Technology is a great resource for buyers because it gives them access to online property listings, allows them to preview homes and find reviews on real estate agents and mortgage lenders. It’s truly changing the homebuying process, and the result is a more confident, informed buyer.”

Technology’s Impact on Real Estate Agents
While the real estate agent’s role remains critical, technology has become more important to buyers, and more integrated in the work of both real estate agents and buyers in the homebuying process. Understanding the more informed and confident homebuyer is essential for an effective real estate agent-buyer relationship.

The real estate agent’s role is still critical, as 83 percent of respondents reported working with real estate agents to buy their homes.

Seventy-four percent of homebuyers feel it’s important for their real estate agents to be tech savvy, with most, 82 percent, saying their agent was tech savvy.

In communicating with agents though, nearly all, 98 percent, communicate through phone calls.

Of buyers working with agents, 42 percent feel that they did most of the work to initially find properties.

The national survey of 1,003 recent homebuyers was commissioned by Discover Home Loans and conducted by Versta Research, an independent survey research firm (http://www.verstaresearch.com), September 5 to September 17, 2014. The sample was carefully balanced and weighted using AHS (American Housing Survey) and NAR (National Association of Realtors) data to ensure an accurate representation of homebuyers by region, age, marital status, and first-time vs. repeat homebuyer status.

Source: Business Wire
Reprinted with permission from RISMedia. ©2014. All rights reserved.


0 Comments

5 Demands to Make on Your Real Estate Agent

12/1/2014

0 Comments

 
Want to know what to look for in an agent?  Click here for "5 Demands to Make On Your Real Estate Agent"

Want to talk to a great agent that meets all these criteria and will go above and beyond to make you happy? Click here!
Picture
0 Comments

    RSS Feed

    David and Amanda Blanton

    Make the Wise Move!

    Categories

    All
    Alpharetta
    Appraisal
    Assessment
    Avoid Foreclosure
    Braselton
    Buford Ga
    Buyer Tips
    Choosing A Real Estate Agent
    Cumming
    Dacula
    Duluth
    Financing
    Flowery Branch
    Foreclosure
    For Sale
    Ga
    Grayson
    Gwinnett County
    Hoschton
    Jackson
    John Maxwell
    Johns Creek
    Keller Williams
    Lawrenceville
    Lender
    Listing
    Loan Modification
    Loganville
    Mall Of Geogia
    MI
    Mortgage
    Mortgage Insurance
    Nocross
    Peachtree Corners
    PMI
    Private Mortgage Insurance
    Property Tax Assessment
    Property Taxes
    Real Estate
    Real Estate Agent
    Real Estate Market
    Restaurant
    Review
    Seller Tips
    Shopping For Mortgage
    Short Sale
    Snellville
    Sugar Hill
    Suwanee

    Testimonials
    557886
    ' David is awesome to work with. He knows the area very well. He is extremely responsive, always took my calls and answered my emails and txts. He truly ... more '
    5.0/5.0
    by philipkupersavage
    557657
    ' David was extremely helpful.....We were very picky buyers & he never pressured us to look at a house outside of our parameters or place an offer... he ... more '
    5.0/5.0
    by dwcourter
    309784
    ' Mr. Blanton helped us find the home of our dreams and he did by listening to what we wanted. He taught us about the housing market, guided us in the ... more '
    5.0/5.0
    by user30821228
    Zillow
    David C. Blanton - Agent at Keller Williams Realty

    Archives

    May 2016
    February 2016
    June 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    November 2013
    September 2013
    August 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    July 2012

    Categories

    All
    Alpharetta
    Appraisal
    Assessment
    Avoid Foreclosure
    Braselton
    Buford Ga
    Buyer Tips
    Choosing A Real Estate Agent
    Cumming
    Dacula
    Duluth
    Financing
    Flowery Branch
    Foreclosure
    For Sale
    Ga
    Grayson
    Gwinnett County
    Hoschton
    Jackson
    John Maxwell
    Johns Creek
    Keller Williams
    Lawrenceville
    Lender
    Listing
    Loan Modification
    Loganville
    Mall Of Geogia
    MI
    Mortgage
    Mortgage Insurance
    Nocross
    Peachtree Corners
    PMI
    Private Mortgage Insurance
    Property Tax Assessment
    Property Taxes
    Real Estate
    Real Estate Agent
    Real Estate Market
    Restaurant
    Review
    Seller Tips
    Shopping For Mortgage
    Short Sale
    Snellville
    Sugar Hill
    Suwanee

    RSS Feed

Powered by Create your own unique website with customizable templates.