Cove Real Estate



Posted by Cove Real Estate on 9/25/2015

Are you looking to buy a bigger home? If you are looking to make the move a jumbo mortgage might be right for you. A jumbo mortgage is a home loan with an amount that exceeds conforming loan limits set by the Office of Federal Housing Enterprise Oversight (OFHEO) or better known as Fannie Mae and Freddie Mac. Currently, the loan limit is $417,000 in most parts of the United States, but can increase to $625,500 in the higher cost areas. OFHEO sets the conforming loan limit size on an annual basis. Jumbo loans have slightly higher interest rates because they carry more credit risk.




Categories: Buying a Home  


Posted by Cove Real Estate on 9/18/2015

When it comes to figuring out mortgages many people use the phrase, "it's all Greek to me" but figuring out how mortgages work is actually quite simple. First, a mortgage is a loan from a lender to a borrower to buy a piece of real property (a fancy way to say house, land, etc). The interest on the mortgage is the percentage of money the borrower agrees to pay the lender each year, in return for lending the money. Here is where it gets complicated, the lender wants to loan to be affordable for the borrower so they spread the interest out over time. This is called amortization. Amortization is the amount of money that goes toward principal (the amount of the loan) and interest. This amount changes over time because the interest owed is spread over time. There is a booklet put out by the U.S. Department of Housing and Urban Development that explains the mortgage and interest process. You can find the booklet here. Now often your payment is more than just the principal and interest. A monthly mortgage payment is often called a PITI payment. No, not pity even though you might need pity when looking at your loan statement. PITI stands for:

Principal -- the loan balance Interest -- interest owed on that balance Real estate Taxes -- taxes assessed by different government agencies to pay for school construction, fire department service, etc.
Property Insurance -- insurance coverage against theft, fire, hurricanes and other disasters
There may also be other fees depending on the kind of mortgage you have. Your monthly payment may also include private mortgage insurance (PMI). Remember there is a lot to know about mortgages beyond the rate so be sure to talk to a mortgage professional to make sure you fully understand your payment options.
 
 




Categories: Buying a Home  


Posted by Cove Real Estate on 7/24/2015

Is a condominium right for you? The market has been steadily rising for the past few years but condo living may not be for everyone. Condo buyers typically fall into three categories: -First-time buyers -Second home or vacation home owners -Retirees looking for a low-maintenance alternative Under the right set of circumstances a condominium can be a great purchase. Before you run out and shop for condos you have to be comfortable living with rules and restrictions, and in close proximity to others. There are different types of condominiums. They can take the form of apartment-style complexes, townhouses or converted multi-family dwellings. Most condominiums have common areas, such as stairwells, dividing and outer walls, fitness centers, pools, walking paths and gardens. These common areas are under shared ownership. Each unit owner holds an interest in these spaces. Because space is shared there needs to a way to manage the maintenance, repair and costs of these common areas. To deal with that and other issues that involve space sharing every condo development has a condominium association. The association is typically elected by condo owners and makes communal decisions in the interest of the community. When you find a condominium you are interested in you will want to inquire about the association: Some questions you may want to ask are:

  • Does the association maintain reserve of funds to pay for unexpected and potentially expensive repairs? If so, how much is in reserve and how is it managed?
  • Has the association maintained the building in good repair? Are there currently or any planned special assessments?
  • Does the association have plans to add any facilities, such as a swimming pool or gym, in the near future?
  • Does the development have any pending legal actions? Are there any disputes between owners, with developers or with the association that you should know about?
  • Buying a condo also comes with costs some are similar to a single family home purchase while others are condo specific. These costs include:
    • Down payment, mortgage and property tax
    • Condo fees, otherwise known as maintenance fees. Condo fees are paid by every resident to help with the maintenance of the building, pay the salaries of groundskeepers, concierges or handymen, and provide luxury facilities such as a pool, gym or rooftop garden. Condo fees are paid monthly and are subject to change. The condominium association budgets and determines the condo fees for all units. Condo fees are typically determined by the size of your unit, how many units are currently occupied, and the projected expenses for building maintenance and repair.
    • Special assessment fees. These fees may be requested when an unexpected repair or planned modification exceeds the cost of the condo fees collected
    • One of the most important considerations is to determine if you can live with the condominium rules or covenants. The rules vary from one condo development to another. Some condominiums may impose restrictions on pet ownership, noise levels, remodeling projects, and renting. Always read the condo rules and regulations to make sure that you are comfortable with them before you make a commitment to purchase.





Posted by Cove Real Estate on 7/10/2015

You may have noticed that new homes are going up around town again. Along with the sale pending signs on existing homes builders are building again. A national index measuring builder sentiment rose in June to its highest level since May 2007. But is buying a new home right for you? Homebuyers trying to decide between new and existing homes have more choices than they have had in the past. The case for new homes: New homes come with builder warranties. New homes allow buyers to select colors and floor plans. New homes can be easier to insure. Some builders have their own financing divisions, so getting a mortgage from the builder may be easier than from a lender. New homes may have a resale advantage. The case for existing homes: Existing homes may offer more space for the money and a more convenient location. Existing homes can be 10 percent to 20 percent less than new construction for comparable square footage. Existing homes are in established neighborhoods. New homes can take several months or longer to build.      





Posted by Cove Real Estate on 5/29/2015

More and more millennials are getting into the housing market. A survey by homebuilder PulteGroup found that 65% of those who make more than $50,000 a year reported increased interest in buying a home. The recession has forced Generation Y, roughly those age 18 to 34, to delay buying homes. Now millennials are now entering their thirties and the cost of buying a home is now becoming a reality. While student loans and financial resources are keeping some younger people from the housing market many others are realizing that in many cases owning a home is cheaper than renting. The survey also reported that millennials know what they want in a home: 84% listed storage as a priority was ample storage                 76% want space for TV and movie watching                                                                           69% desire an open living/room kitchen layout                                                                             63% look for outdoor living or a deck                                                                                               36% cited the ability to work at home Other recent studies have affirmed the PulteGroup study and have shown that 90% of millennials plan to buy a home someday keeping the dream of homeownership alive.