Real Estate Information Archive

The increases in FHA mortgage guarantee costs that took effect on April 1 have many home buyers asking, "What do these increases mean to me when I get an FHA loan?"  Megan Booth and Rob Freedman with Realtor.tv break down the facts in this informative video.

Lets look at the statistics in our local real estate market? 

Midtown Montgomery real estate sales statistics for March show the average sales price decreased by 26% to $95,339 when compared to March 2011.  The number of homes sold increased by 33% in March 2012.  The median sales prices decreased by 51%, and market times increased by 8% or 11 days.  The highest selling home price increased by 7%, and the lowest selling home price increased by 67%.

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Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

You can reach Sandra by filling out the online contact form below or give her a call anytime.

Information is provided by the Montgomery Area Association of Realtors and is deemed accurate but not guaranteed.

If your loan was “sold” to Fannie Mae or Freddie Mac prior to June 1, 2009, you may qualify to refinance your mortgage without an appraisal—and you don’t have to worry about the value of your home either!

Determining if your home qualifies

• Call me with your property address and I will check Fannie/Freddie’s website
• Your current home, rental property, second home qualifies
• If you have a 2^nd mortgage, the 2^nd mortgage holder must agree to “subordinate.”

What you will need to apply

• Estimate of the current value of your home based on comps from a real estate agent
• 30-days’ worth of paycheck stubs
• Bank statements
• Decent credit scores
• Copy of driver’s license
• Private Mortgage Insurance (did you have to include on your original loan?)
• Copy of title policy
• Copy of homeowner’s insurance policy

What is “unknown”

• Fannie/Freddie may require additional documents once the file is submitted to underwriting
• You may have to bring money to closing
• How long it will take to process your loan
• Fannie/Freddie may determine whether or not you will need an appraisal.

What are the benefits?

• Lower interest rate
• Decrease in the number of years left to pay off your mortgage
• No appraisal required (if determined by Fannie/Freddie)
• PMI insurance may decrease or be eliminated.

There is a huge window of opportunity for you to take advantage of a lower interest rate and reduce the number of years on your mortgage, with lower closing costs.  Call me to see if you qualify! 

 Search all Montgomery AL Real Estate And Homes For Sale.

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com. 

You can reach Sandra by filling out the online contact form below or give her a call anytime. 

Talk about a setback!  You’ve spent recent months preparing your house for sale or looking for the perfect house to buy, negotiating a fair price, and anxiously awaiting the settlement date.  And now the appraisal on that piece of Montgomery AL real estate has come in below the asking price.  What to do?  First, whether you are the buyer or the seller, remain calm.  This is not an unusual occurrence in today’s market.  Understanding the possible reasons for the disappointing appraisal and exploring strategies to save the transaction are your next steps.

REASONS F0R A LOW APPRAISAL:

• Overpricing by seller
• Declining market values
• An abundance of foreclosures or short sales in the neighborhood
• Inflated price resulting from multiple offers
• Incorrect evaluation by the appraiser
• Cash back to buyer from the seller
• Error(s) on the part of the appraiser

WHAT A SELLER CAN DO:

• Lower the price of the Montgomery AL real estate.  After researching and analyzing the latest comps with your Realtor, realistically reconsider your asking price and decide whether you are willing to begin the selling process all over again.
• Offer to carry a second mortgage for the buyer if the above option is not possible.

WHAT A BUYER CAN DO:

• Ask the seller to make up the difference in cash.
• Ask the lender for a new appraisal after presenting your justification for this request.

OPTIONS AVAILABLE TO BOTH SELLER AND BUYER:

• Check the appraiser’s report for errors (in facts or omission) in information about the Montgomery AL real estate.  Verify the accuracy of the square footage, the number of bedrooms and bathrooms.  Have any recent improvements you’ve made to the property been included?  If not, appeal the appraisal.
• Supply to the underwriter a list of recent comparable sales that justify the selling/purchase price and ask for a review of the appraisal.
• Order a new appraisal.  Although you will have to pay for it, it could be money well spent if it results in a higher appraisal. Your lender will give you a list of appraisers if the loan is an FHA one.  If it’s conventional, it is subject to the rules of the Home Valuation Code of Conduct (HVCC).
• As a last resort, cancel the transaction.  Most purchase contracts contain a loan contingency which deals with low appraisals.

Search all Montgomery AL Real Estate And Homes For Sale.

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

You can reach Sandra by filling out the online contact form below or give her a call anytime.

When you buy Montgomery AL real estate without a down payment of at least 20%, the lender, be it FHA or a private mortgagor, requires that you purchase mortgage insurance to protect it against financial loss.  Mortgage insurance, not to be confused with mortgage life insurance or homeowner’s insurance, assures the lender of no financial loss or a very reduced one) if you default on the loan.

The cost of this insurance—from .25 to 6% of the loan—is almost always the responsibility of the buyer of Montgomery AL  real estate.  (There is such a thing as lender-paid insurance, but this type carries a higher interest rate and is non-refundable.)  Usually the borrower has a choice of payment plans, which included the following:

• Annuals. The borrower pays the first-year premium at closing; an annual renewal premium is collected monthly as part of the total monthly house payment.
   
• Monthly Premiums. The cost is slightly more than traditional mortgage insurance plans but monthly premiums dramatically reduce mortgage insurance closing costs. Borrowers pay for mortgage insurance monthly as part of their total monthly house payment but need to pay only one month's mortgage insurance premium at closing, rather than one year's. 
   
• Singles. The borrower pays a one-time single premium (instead of an initial premium and renewal premiums). Since single premiums are typically financed as part of the mortgage loan amount, no out-of-pocket cash is used for mortgage insurance with a nonrefundable premium at closing.

These plans offer the choice of refundable or nonrefundable premiums. A refundable premium allows the borrower the opportunity to receive money back on any unused portion, in the event that mortgage insurance coverage is discontinued before the loan is paid in full. The cost for a nonrefundable premium is slightly less than that of a refundable premium, thereby giving the borrower a small savings. If coverage is discontinued on a loan with a nonrefundable premium, the borrower has no opportunity for a refund.   If you are unsure which plan is best for you, visit your state mortgage insurance office.

Unfortunately, rumors and myths abound about the difficulty or even impossibility of cancelling refundable mortgage insurance.  Fortunately, however, the Homeowner’s Protection Act of 1998 requires lenders of insurance loans for Montgomery AL real estate to notify consumers of their rights in this regard on a yearly basis and to automatically cancel the insurance when the mortgage has amortized to 78% of the original property value.  In addition, you may apply for cancellation of your mortgage insurance when that percentage reaches 80%.  For specific details of the HPA requirement in terms of timing and content of these notices, click here. 

While paying for mortgage insurance does entail an extra expense for the home purchaser, it also has its benefits.  It allows new buyers to become a homeowner sooner than if they needed to have a 20% down payment and greatly increases their buying power.  Repeat buyers can gain a significant tax advantage by having more deductible interest to claim.  They can also use the money saved by not putting down 20% to cover moving costs or to put into other investments.

Search all Montgomery AL Real Estate And Homes For Sale.

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

You can reach Sandra by filling out the online contact form below or give her a call anytime.

There were 874 Montgomery AL foreclosure homes for sale with 1 in every 1,181 housing units receiving a foreclosure filing in February 2012. The average selling price of a Montgomery AL home was $97,803 and the average foreclosure selling price was $69,578, a $28,225 savings according to RealtyTrac.com.

Montgomery AL Foreclosure Activity and 30 Year Interest Rate

Montgomery interest rates averaged 3.89% in February while the number of foreclosed homes dropped from 117 to 80.

Foreclosure activity is based on the total number of properties that receive foreclosure filings – default notice, foreclosure auction notice or bank repossession – each month. Interest rate is based on the average 30-year fixed rate from Freddie Mac Primary Mortgage Market Survey.

Montgomery AL Foreclosure Geographical Comparison

Montgomery AL foreclosure activity was 0.08% lower than national statistics, 0.01% higher than Alabama and the same as Montgomery County statistics for the month of February 2012.

There were 840 Montgomery AL foreclosure homes for sale with 1 in every 808 housing units receiving a foreclosure filing in January 2012. The average selling price of a Montgomery AL home was $81,926 and the average foreclosure selling price was $81,926, according to RealtyTrac.com.

Montgomery AL Foreclosure Activity and 30 Year Interest Rate

Montgomery interest rates averaged 3.92% in January while the number of foreclosed homes climbed from 58 to 117.

Foreclosure activity is based on the total number of properties that receive foreclosure filings – default notice, foreclosure auction notice or bank repossession – each month. Interest rate is based on the average 30-year fixed rate from Freddie Mac Primary Mortgage Market Survey.

Montgomery AL Foreclosure Geographical Comparison

Montgomery AL foreclosure activity was 0.04% lower than national statistics, 0.05% higher than Alabama and the same as Montgomery County statistics for the month of January 2012.

Unfortunately, selling your Montgomery AL home in the current real estate market can be both difficult and frustrating.  As much value as you may feel your home has, the current conditions might say differently. In this buyer’s market, accurate pricing of your home is imperative in getting your property sold quickly and for the best price possible. While this might sound simple enough, correctly pricing your property is far from easy and is a decision which requires time and effort on your part.  The following tips should help make the pricing process a smooth and beneficial one for you.

1. Do your research: It’s important to know http://www.montgomeryhomeinfo.com/what other homes in your area are selling for right now in order to get an idea of a price point for your own property, but you shouldn’t rely on that alone. An Automated Valuation Model, better known as an AVM, is a web-based technology that immediately generates home values based on data analysis of recent area comparable sales, tax assessments and price trends.
2. Find the right Realtor: Hiring the listing agent who quotes you the highest price isn’t always wise.  Interview at least 3 Realtors familiar with the area around your Montgomery AL home and choose the agent who supports a suggested price with comparative market data. It is the job of your Realtor to know the current market and market trends inside and out, to be closely connected to the real estate market at large, and to be aware of other properties currently for sale in your particular neighborhood..
3. Cast emotions aside:   It’s important to remain as realistic and objective as possible when pricing your property. Although your home will most likely be invaluable to you, focus on the statistics from your research and on the advice given to you by your real estate agent for a satisfactory sale.
4. Avoid overpricing at the outset.  Because your property has the best chance of selling within its first seven weeks on the market, the longer it stays on the market, the less it will ultimately sell for.  In addition, you will lose out on savvy potential buyers who won’t even come by to look, and fewer knowledgeable Realtors will preview your Montgomery AL home.  Lowering your price later will only result in delays and suspicions that something is wrong with the property.

Search all Montgomery AL Real Estate And Homes For Sale.

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com. 

You can reach Sandra by filling out the online contact form below or give her a call anytime.

2012 is off to an encouraging start. Mortgage rates have remained under 4% for nearly two months. Home sales are strengthening and pending home sales, a measure to gauge future sales, are at their highest levels since March 2010.

Job growth increased during most of 2011, with unemployment dropping to 8.4%. As more people are getting jobs, consumer confidence has also been increasing.  However, underemployment with a rate of 18.1% continues to be a problem for a stronger recovery. There are still a significant number of people working part time, who would like to have full-time work.

Even with substantial national improvements, the recovery is spotty. Payroll jobs were up in 25 states, but down in 24, demonstrating the delicate state of the U.S. economy. Global factors such as the European debt crisis are also complicating a more robust recovery. 

What does the recovery look like in our local real estate market? Take a look at January figures.

Midtown Montgomery real estate sales statistics for January show the average sales price decreased by 3% to $141,407 when compared to January 2011.  The number of homes sold increased by 39% in January 2012.  The median sales prices increased by 1%, and market times decreased by 11% or 18 days.  The highest selling home price increased by 38%, and the lowest selling home price decreased by 31%.

Search all Montgomery AL Real Estate And Homes For Sale.

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

You can reach Sandra by filling out the online contact form below or give her a call anytime.

If you are a potential purchaser of Montgomery AL real estate, you need to be familiar with the various types of mortgages available to you and the terminology that accompanies them.  So many choices may be a boon to borrowers, but that very variety holds the potential for much confusion.  Here is a simplified guide to terms and types.

TERMS:

• Fixed rate:  The interest rates do not change during the life of the mortgage, thus allowing you to know the amount of your payment at all times.
• Adjustable rate (ARM):  The interest rate is tied to a certain index and margin and can fluctuate up or down, thus affecting the amount of your payment.
• Step:  The interest rate and monthly mortgage payment for your Montgomery AL real estate remain the same for a specified period of time, but after that the interest changes to the prevailing rate and stays there
• Balloon:  A loan payment that expands after a specified period of time.  Similar to a fixed rate loan in the early years but with a steep payment of all money owed at the end.

TYPES:

• Fixed rate mortgage:  Traditionally for 25 or 30 years, but also available for 15 or 20.  Although interest rates are somewhat higher than for other types of loans, that rate remains in place for the duration.  Especially good if you plan to live in your home for at least ten years.
• 1 Year ARM:  Also has a 30 year duration, but the interest rate is adjusted each year.  It is important for you to know how often the rate can be changed and if there are annual and life-of-loan caps on the rate.  Beware of payment caps, which can result in negative amortization.
• Hybrid mortgage:  Sometimes called a three-year fixed or five-year fixed, this type of mortgage incorporates some of the features of both a fixed rated and an ARM, meaning that the interest rate on your Montgomery AL real estate will remain the same for the first three (or 5) years but will then convert to a one-year ARM for the remainder of the loan term.
• Balloon mortgage:  In this type of arrangement, you pay a low rate of interest for a certain amount of time.  At that point, the entire amount owed is due, requiring you to refinance your property or make a final—and extremely large—payment to the lender.
• Interest-only loans:  As the name suggests, you pay nothing on the principal for the first five years.  After that you are expected to make regular monthly payments which include both interest and principal.
• FHA loans:  FHA mortgage loans are insured by the government through insurance that is funded into your loan. FHA allows down payments of as little as 3%. 
• VA loans:  Available to veterans who have served in the US military forces.  The main benefit to this type of loan is that you do not need a down payment.  The loan is guaranteed by The Department of Veteran Affairs.

Being familiar with mortgage terms and types should make it easier for you to talk with your Realtor and/or lender about which option is most beneficial for you.

Search all Montgomery AL Real Estate And Homes For Sale.

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

You can reach Sandra by filling out the online contact form below or give her a call anytime

If you are considering a divorce or are going though one, it is important that you learn as much as you can about divorce laws in your state and how they impact your Montgomery AL real estate holdings.  Yes, you probably have enough to deal with already, but knowing as much as you can about relevant divorce laws will certainly make your life easier in the long run. 

Although a divorce eventually involves the distribution of all of a couple’s assets—and action dictated by either an equitable distribution system or community property regulation—generally the most pressing issue (other than child custody)—is the resolution of dividing your Montgomery AL real estate.

Since the selling of a home is stressful by itself, let alone when accompanied by a divorce, the cooperation of both parties is vital to make a complicated and emotion-laden process work as smoothly and civilly as possible. The following suggestions to help combat volatile issues and strong feelings:

1.  Consult with your divorce attorney.  A well-crafted settlement agreement can help to avoid many types of disputes. The agreement should be quite detailed, including all potential issues that could arise during the sales process.  The greater the detail, the better.  The agreement should ensure that the interests of both parties are aligned towards selling your Montgomery AL real estate so that you both can move on with your lives.

2.  Find a real estate agent who specializes in selling property for divorcing couples.  With divorce rates continuing to rise, many Realtors are beginning to market themselves as specialists in selling  homes for couples who are divorcing.  These agents understand the complexities of a pending divorce case and will work with you on an individual basis. 

Before you can  decide how your Montgomery AL real estate is to be divided, you must first determine its value.  There are three methods which you can use to do this:

 Tax assessed value.  Although tax valuations tend to be low by as much as 10-20%, this value is likely to be the one used by the courts in case of dispute.

Appraiser.  For a fee of $300-$400 this person will perform a market valuation.

Realtor.  A real estate agent estimate the  can also value your property, generally for little or no cost.  His/her valuation may be less reliable than that of a professional appraiser, however.

Determining equity  in order to equitably divide assets is a complex process which can become quite complicated. 

Search all Montgomery AL Real Estate And Homes For Sale.

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com. 

You can reach Sandra by filling out the online contact form below or give her a call anytime.