Here are a few ideas regarding different mortgage methods you may want to consider when your thinking of buying a home.
Can you still buy without a fixed mortgage?
ORLANDO, Fla. – Feb. 9, 2009 – Buying a house doesn’t necessarily require getting a 30-year, fixed-rate mortgage. More and more people are exploring alternative financing plans as it gets harder to get a conventional bank loan.Here are some creative ways to pay for a home, according to some financial experts:• Securities-backed loans. The lender gives the borrower 80 percent of the value of his stock portfolio. Then the lender holds the stock for between three and 10 years while charging a 3 percent to 5 percent interest on the loan. At the end, the borrower gets his original shares back. Both win if the stock has increased in value.•
Two-step mortgages. This fixed rate mortgage is amortized over 40 years, but the payment schedule is adjustable.•
Constant-amortization mortgage. Buyers start with a higher payment, but the loan is constantly re-amortized, so principal is reduced faster than with a conventional loan.•
Family loans. In the most successful arrangements, the family puts the agreement in writing and the lender charges the borrower a rate of interest high enough to pass IRS scrutiny, thus avoiding any gift tax.•
Assuming a mortgage. Buyers interested in purchasing a house in the pre-foreclosure stage might ask the lender if they can assume the mortgage. In some circumstances this can be a good deal
.Source: Forbes, Matt Woolsey (01/26/09)© Copyright 2009 INFORMATION, INC. Bethesda, MD (301) 215-4688
Questions, comments or suggestions on this article?
Friday, February 13, 2009
Friday, February 6, 2009
Home Prices may be Stabilizing
I'm beginning to see more articles like the following indicating the end of housing price declines is near.
In the Keys there has been a stabilizing of sales prices and an increase in the number of pending sales.
US housing markets from Florida to California have suffered price drops of 50 percent or more from their peak, but now, at long last, a bottom is within sight, likely in the fourth quarter nationally. sales are probably at bottom, stabilized by foreclosure sales, while construction will hit bottom in the first half of this year, although the pace of housing starts will remain very depressed until 2011. From the peak to the trough, total single-family home sales will have declined by 40 percent and housing starts by 70 percent.
@ CNBC Posted: 02/05/09 at 0201 EST
On a side note its been very cold here the past few days but nothing compared to the midwest and northeast parts of the country. The cold weather hasn't hurt the fishing particularly the sail fish which are reported to being boated on a record pace.
The National Association of Realtors has offerd an amendment to the Stimulus Package working its way through Congress to lower interest rate to 4.5% or less and have the first time home buyer credit changed to apply to all sales of primary residences. If these provisions are included it should help you purchase your Florida Keys Dream house.
In the Keys there has been a stabilizing of sales prices and an increase in the number of pending sales.
US housing markets from Florida to California have suffered price drops of 50 percent or more from their peak, but now, at long last, a bottom is within sight, likely in the fourth quarter nationally. sales are probably at bottom, stabilized by foreclosure sales, while construction will hit bottom in the first half of this year, although the pace of housing starts will remain very depressed until 2011. From the peak to the trough, total single-family home sales will have declined by 40 percent and housing starts by 70 percent.
@ CNBC Posted: 02/05/09 at 0201 EST
On a side note its been very cold here the past few days but nothing compared to the midwest and northeast parts of the country. The cold weather hasn't hurt the fishing particularly the sail fish which are reported to being boated on a record pace.
The National Association of Realtors has offerd an amendment to the Stimulus Package working its way through Congress to lower interest rate to 4.5% or less and have the first time home buyer credit changed to apply to all sales of primary residences. If these provisions are included it should help you purchase your Florida Keys Dream house.
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