Tuesday, January 30, 2007
Open House-Yes or No
Some home owners insist on having an open house, however only 1-5% of homes are sold from an open house! There are three reasons that open houses are held. 1) The agent is hoping to meet new prospective buyers. 2) The agent wants to make the seller feel like they are really working hard (guilt). 3) It could sell!
As a homeowner, be aware that strangers will be coming into your property and viewing your personal items. Be careful to keep valuables stored somewhere safe during the open house.
As an agent the visitors are not prequalified and may be unable to buy the property anyway.
For the high end market, almost all viewing is done by appointment.
As a homeowner, be aware that strangers will be coming into your property and viewing your personal items. Be careful to keep valuables stored somewhere safe during the open house.
As an agent the visitors are not prequalified and may be unable to buy the property anyway.
For the high end market, almost all viewing is done by appointment.
Tuesday, January 02, 2007
Mortgage Definitions
Annual percentage rate(APR)
A yearly rate of interest that includes fees and other costs paid to acquire the loan.
Balloon
A mortgage that has level monthly payments that will fully amortize over a stated term (30 years) but which provides for a lump-sum payment to be due at the end of an earlier specified term. (10 years)
Buydown
Mortgage in which the rate is lowered by paying more points up front.
CAPS
The maximum amount that the rate can increase during a specified time period.
Loan-to-value ration (LTV)
Percent of a home's price that is paid for by a mortgage.
COFI
Adjustable rate mortgage with rate that adjusts based on a cost-of-funds index, often the 11th District Cost of Funds Indicator.
Lock
A lender's written guarantee that the mortgage rate quoted will be good for a specified period of time.
A yearly rate of interest that includes fees and other costs paid to acquire the loan.
Balloon
A mortgage that has level monthly payments that will fully amortize over a stated term (30 years) but which provides for a lump-sum payment to be due at the end of an earlier specified term. (10 years)
Buydown
Mortgage in which the rate is lowered by paying more points up front.
CAPS
The maximum amount that the rate can increase during a specified time period.
Loan-to-value ration (LTV)
Percent of a home's price that is paid for by a mortgage.
COFI
Adjustable rate mortgage with rate that adjusts based on a cost-of-funds index, often the 11th District Cost of Funds Indicator.
Lock
A lender's written guarantee that the mortgage rate quoted will be good for a specified period of time.
Mortgage Payment Factor Information
January,2,2007
30 year fixed rate: 6.19%
15 year fixed rate: 6.03%
Factoring is a way to determine your monthly principal and interest payment based on the purchase price and interest rate. The "monthly thousands" number is your purchase price in thousands. Example: a $550,000 purchase price would be 550.
Interest Rate 6.00%
Payment Factor 5.9955 (for a 30 yr fixed)
Monthly Thousands 550
Principal and Interest $3,297.53
The payment factor is multiplied by the monthly thousands number.
One site that has a easy screen to work with your own numbers is:
Mortgage-calc.com
30 year fixed rate: 6.19%
15 year fixed rate: 6.03%
Factoring is a way to determine your monthly principal and interest payment based on the purchase price and interest rate. The "monthly thousands" number is your purchase price in thousands. Example: a $550,000 purchase price would be 550.
Interest Rate 6.00%
Payment Factor 5.9955 (for a 30 yr fixed)
Monthly Thousands 550
Principal and Interest $3,297.53
The payment factor is multiplied by the monthly thousands number.
One site that has a easy screen to work with your own numbers is:
Mortgage-calc.com
