FHA 203 K Rehabber Loan

An FHA 203(k) loan is a great tool when wanting to rehab a purchase or REMODEL/UPDATE your existing home! Here is how they work: Lets say you buy a house(or your existing homes mortgage is) for $150,000.00 and it needs the basement finished, some updating and a new deck, to complete the work it will cost $20,000.00. Lets assume that upon completion the house is worth $220,000.00. Another feature of a FHA 203(k)is that the loan is underwriten manually and there are two appraisals done, one to verify the initional purchase and another to verify the homes value upon completion of the work. So the loan amount will be for $170,000.00 and it will have an FHA market rate ( appx 6% 2/10/08 ) and will require 3% downpayment like ANY FHA loan. He is a kicker, I have access to DOWNPAYMENT ASSISTANCE PROGRAMS which, if you are eligible, would cover the down payment!!! Then, I can get the seller to pay your closing cost and you get the house for virtually nothing, ZIP. Plus, you wont have a mortgage payment for a month or two. Like I mentioned, these loans can be used on your existing home too! To be eligable the home must be a 1 to 4 family house. Now, here is the best part: After 2 years time you sell the house for $225,000 after all the work is completed. You pay off the original mortgage for $165,000.00 ( remember you put 3% down ) the difference is kept by you at 100% profit ( homestead exemption act ). So, you get the house for free, live in it for two years then sell it and make $60,000.00 in this example!! This is how you make money in Real Estate, not wasting time renting houses to losers and then paying HUGE taxes when you sell.( not to mention cost of repairs and the hassle of maintenence ) For more info contact me and/or check out the FHA link on www.markalkaseltzer.com

It is a great time to buy a house!

Hello! As you know interest rates are low and I think they will be through out the spring and hopefully the summer months also. Although the media paints a picture of doom and gloom, the market here in St. Peters MO is great! As long as a home is priced correctly ( more on this is the future ) and has the necessary work done to it PRIOR to listing then it WILL SELL! Buyers have more to choose from and interest rates are awesome! So, dont listen to the media... It is only the first of Feb and I am crazy busy! ( with buyers AND sellers ) Mark

Medias Interest Rates ( internet/Radio etc )

Never EVER believe the interest rates you hear or read about in the media!!
I mean, how can a company tell you what rates are when they change daily, sometimes 2 or 3 times a day. Also, so many factors come into play when one gets a mortgage. Things like Loan to Value (LTV), Credit Scores, Type of Loan and Terms, Debt Load, Cash-out Refi, all come into play when you obtain a loan. What these companies are trying to do is get you to call them! Then, they are going to give you some "great deal" and RIP YOU OFF! They will charge you points and fees and crap and make it sound like "this is a great deal for you." Or my favorite: "nothing out of pocket." Watch OUT! These guys are slick and they are unregulated by the government!! I personally have met people that have fallen to their "tricks" (great deals) and have their permission to share their stories with you. Make sure you use a REPUTABLE company when obtaining your mortgage. Mark

They CUT RATES AGAIN !!!!!!

If you can believe it the Feds cut interest rates again for the second time in like 10 days. I think that mortgage rates will see a decrease as well, next week on Tues or Wed. Check out the blog posting below... Mark

Feds Cut Interest Rates Again

Hello! So, once again the feds cut the interest rate. What does that mean to me?? Well read on ol' faithful one and call if you seek more information...

On days like this, I think it’s important to go back to the ol’ mortgage primer and figure out exactly what all this news means to you, to your mortgage, to your home equity line and to your home’s financial future. I’ve said it before, and I’ll say it again: the 30-year fixed is not tied to short-term treasuries.

Fixed mortgage rates are tied to long-term bond yields that move based on the outlook for the economy and inflation. And guess what? The long-term outlook for the economy isn’t exactly rosy right now.
Today’s rate cut does affect short-term adjustable rate mortgages, but not "really" as much as you might think. Why? Because this rate cut was already priced into the market, maybe not three quarter's point, but definitely a half-point. So if you are facing a reset on your ARM, you’re in much better shape today than you were just six months ago.
For example, if your rate adjusts Feb. 1st, and your ARM is pegged to the 1-year treasury, than your reset is going to be to 5.25 percent as opposed to the 7.5 percent that it would have been in August. That’s going to make the payment much more manageable.
So does this cut stem the foreclosure crisis? Maybe a bit on the margins, but not really, and here’s why: the bulk of the folks facing foreclosure because they can't make their monthly payments have no equity in their homes and no money to put down on a refinance.
While rates might be lower, this is a market where lenders and investors are much more aware of risk and will gravitate toward borrowers that represent less risk. So many folks will still find themselves in trouble. For people who are having trouble paying the initial rate on the loan, forget it. No help there.
As for those looking to buy a home, that is, get a new mortgage, while ARM rates may be lower, the mortgage landscape is still a far far different tundra than it was just a year ago. You can’t do a stated income loan anymore, and you can’t do 100 percent financing. Tighter standards don’t change with a rate cut.
And I want to add my two cents here about a home equity line of credit. Yes, the rates are lower now, but I really don’t think that means we should all start using our homes as ATM’s again, which is what got us all in trouble in the first place. This is a time to pay off debt, not to gather more. The housing market is still in trouble.
The statement from the Federal Reserve this morning: “incoming information indicates a deepening of the housing contraction as well as some softening in labor markets.” We all know the price correction in housing is still underway with home prices across the nation (yes, I know, some markets worse than others) expected to fall further, so this is no time to put your home in more hoc. Just my two cents, which I’m putting in the bank as we speak.

I hope you like this article and will have more posts in the future...

Mark
www.markalkaseltzer.com

PLEASE Dont Make This Mistake !!

When buying or selling Real Estate in the lower price ranges do not, DO NOT use one of the so called "Mega Agents" that has a "Team" working for them! Notice I said WORKING FOR THEM. Often, these team members have little or no true Real Estate experience and most are not even licensed! (These team members are usually paid $10.00 per hour) Now, there are exceptions, but that does not matter regarding you 250K or lower purchase. Let me explain why:
Lets say you are looking for a house around 155,000 or so. These MEGA agents though are used to getting houses for their clients in the 350,000 plus, but often in a much higher price range than that. Remember, you are looking in the 155K range and so are a lot of other home buyers. Not only are you competing with other buyers but you are competing with investors too! Lets say you put your faith in on one these MEGA Agents, how much incentive does this MEGA agent have regarding your purchase?? Lets look at some facts:
1. When buying a home in the lower price range you must have the ability to go and view homes quickly and, often, as soon as they come on the market. ( the good ones go FAST )
2. How can this be done when when your MEGA agent is hanging out at the country club trying to drum up more listings? ( more listings=more business=more team members=more marketing$ and advertising$ ) Or they are hanging out with their Million Dollar Listing( RICH) friends. Where do you fit in to their fancy/dancy lifestyle??
3. If they did "hook you up" with one of their team members and you find a home you want to write a contract on, do you want to have an INEXPERIENCED agent write up your contract? Yes, these MEGA agents target NEW AGENTS to join their "team". Often, these NEW agents were unsuccessful on their own, as a real estate agent, and they succumb to joining a team. Notice I said that these agents were UNSUCCESSFUL as a Real Estate agent on their own. ( again their are a FEW exceptions here) so they join a team and make $10.00 per hour plus a cut !!!!!

I guess you get the point. I could go on and on why you should NEVER use a MEGA MILLIONS AGENT when you are in the lower price bracket. What you do need is a dedicated, full time agent, that NEVER takes on too much of a work load. I take pride in working one on one with my clients and being available for them when it is convenient for THEM. You will never here from me " I cant right now because..." OR " how about getting together in a few days, I am really busy now". What the MEGA agent is saying is: THEY ARE TO BUSY FOR YOU!!

Interest Rates 1/14/08

Hello! Well, rates are still great, around 5.75% fixed for 30 years. We should see rates hit 5.5% sometime this spring, it will be VERY short lived so call me IMMEDIATLY if you are interested in purchasing or doing a RE-FI. Remember, I can get funds for home improvement/remodeling at market rates. Not 10-12% like a home equity loan!! Remember, these rates you hear on radio/tv/internet are a JOKE. They are tying to get you to call them so they can give you the 'ol sales pitch! Mark