Here’s how to win at Monopoly in real life by adopting some of its real estate strategy. Considerations for investors with multiple mortgaged properties Mistakes to avoid The leverage you gain with smart mortgaging allows you to control more rentals and acquire wealth. Check mortgage rates for rental property here (Dec 18th, 2018) Monopoly and mortgages The objective of this classic game is to control property and extract rents from your competitors until they run out of money. Some properties are more valuable and desirable than others, and owning a matching group allows you to build homes and hotels and charge much higher rents. Real estate strategy: leverage Monopoly is not just a game. According to Alex Hemani at Forbes.com, leverage in real estate investing works best when property values and rents are increasing. And while most investor property mortgages require at least 20 percent down, getting that 20 percent from your other properties allows you to leverage a lot more. Investment cash-out mortgages in real life There are many ways to extract equity from investment properties. Financing more properties Mortgage lenders require significant cash reserves when financing rental property, and the more properties you have mortgaged, the higher this number may be. Most property investors make their money over time, paying off their mortgages and investing their rental income Many, many wealthy people in the US got there with real estate investing.
One popular loan is the interest-only adjustable rate mortgage, with which a borrower pays only the interest for a period before the rate resets and principal becomes part of the payment. “We all have time on our hands because business is so slow,” he said. “The worst it could be was 8.75 percent, and saving $25,000, I could put that money somewhere else.” The family’s plan, Mr. John said, is to make principal payments in addition to the interest, with the goal of reducing his mortgage faster than he would with a 30-year fixed-rate loan. The price falls will be higher because of the expectation that prices always go up.” And not paying principal during the initial interest-only period just makes the amortization period of the loan shorter, said Richard K. Green, a professor of real estate at the University of Southern California. In other words, instead of paying off a mortgage over 30 years, the borrower is paying it down over 20 or 25 years, increasing the amount of the payments after the interest-only period ends. “It’s not to just get someone into a house,” he said. The risk of a change in a person’s financial circumstances could affect the ability to repay interest-only loans. They were the first to lose their jobs.” Today, though, even qualified borrowers need to be aware of the loans’ risks. After the initial interest-only period resets, the payment can go up as high as 50 percent, and some people cannot afford that, Dr. Green said. “For the first-time home buyer, I say stay away.”
Low delinquency rates bode well for homeowners and lenders; however risks still exist that put more people in jeopardy of foreclosure. Top 5 states with most serious delinquencies are on the East Coast In August, the states with the most serious delinquencies, which are defined as 90 or more days past due, were New York (3.1 percent), New Jersey (2.9 percent), Mississippi (2.9 percent), Louisiana (2.7 percent) and Florida (2.5 percent), according to CoreLogic’s latest Loan Performance Insights report. Top 5 states with highest serious mortgage delinquencies State Percentage of delinquencies Foreclosures Source: ATTOM Data Solutions New York 3.1% 12,000 New Jersey 2.9% 15,000 Mississippi 2.9% 773 Louisiana 2.7% 2,073 Florida 2.5% 19,000 “Because of extremely long foreclosure processes in those states, exacerbated by delays because of questionable mortgage documents, there are still a relatively high percentage of delinquent homeowners who have been delinquent for years but not yet foreclosed on — or whom got into a loan modification to avoid foreclosure but have fallen back into foreclosure,” Blomquist says. Louisiana and Mississippi also face a tough housing market, which is more a product of lagging home price growth in the wake of the housing crisis. Almost 21 percent of Louisiana homes and 23 percent of Mississippi homes are underwater, according to ATTOM. That compares with the national average rate of 9 percent. Income inequality topped the national average in Florida, Louisiana and New York. We saw during housing crisis that one spouse wouldn’t tell the other that they were in trouble,” Gerecke says. Some people were victims of frauds and scams – people are somewhat hesitant to ask for help and for good reasons.” For people who are drowning in debt or are facing financial trouble, seeking the help of a financial counselor is a good place to start, Gerecke points out. This is especially true for people who are hesitant to contact their lenders for fear of foreclosure; generally the counselor can act as an intermediary.
The Many Ways to Be Relieved of Your Timeshare Obligations While it is true that a timeshare contract is a binding legal document, it is often mistakenly thought that such a contract cannot only be cancelled. In fact, most timeshare companies maintain that their contracts are non – cancellable. This misconception is perpetuated by timeshare companies and user groups that are funded, maintained and controlled by the timeshare industry. Straight Up with Jocelyn Predovich: The Truth about FHA 203k Loans The FHA 203k loan program provides home buyers the opportunity to buy and fix up a property, without exhausting their personal savings. Homeowners’ typical mortgage payment is rising much faster than home prices, according to new data from CoreLogic. The US median sale price has risen by just under 6% over the past year, according to CoreLogic. However, the principal-and-interest mortgage payment on a median-priced home has spiked by nearly 15 percent. And the trend looks set to continue – CoreLogic’s Home Price Index Forecast predicts that home prices will rise 4.7% year over year in August 2019. One way to measure the impact of inflation, mortgage rates and home prices on affordability is to use the so-called “typical mortgage rate,” CoreLogic said. While the US median sale price in August was up about 5.7% year over year, the typical mortgage payment was up 14.5% because of a neatly 0.7-percentage-point hike in mortgage rates over the time period, LePage said.
While most of the national attention in last night’s election coverage focused on prominent personalities in key states, a number of local referendums addressed issues related to housing affordability. Portland voters approved a $652.8 million bond measure to build more affordable housing. Two North Carolina cities also passed bond measures to finance affordable housing. The measure will finance the creation of new low-income housing and the rehabilitation of foreclosed, blighted or dilapidated single-family houses and apartments. Separately, voters in Chapel Hill approved a $10 million bond to build and preserve more than 700 affordable homes and apartments. Paying off the bond could add a penny to the town’s tax rate of 52.80 cents per $100 in property value. In Texas, Austin voters approved a $250 million proposal for affordable housing. “We’re excited for this historic bond to have passed with such an overwhelming margin,” said John Lawler, the Head of the Keep Austin Affordable coalition organized in support of the bond, in an interview with the Austin Statesman. “We see it as a mandate for the city of Austin to invest heavily in affordable housing.” However, one proposition that went down in defeat. Sponsored
If you’re trying to help a millennial with real estate, you might be better off being an influencer than an agent. A recent Engel & Völkers study found that 80 percent of millennials would consider hiring an influencer as a real estate agent, according to Inman. The study surveyed more than 1,000 people born between 1982 and 1999 with annual incomes of more than $100,000. The top three factors for the participants when choosing a real estate agent were referrals, local reputation and neighborhood expertise. But, agents “have to have a niche or distinguishing factor that blends this knowledge with entertainment or aspirational value that will make you a center of influence — building your following and referral base as a result,” explained Engel & Völkers Americas President and CEO Anthony Hitt, speaking to Inman. The study also found that 98 percent of respondents refer to social media or online reviews when contemplating a purchase and 84 percent said influencers “impacted their decision.” [Inman] – Eddie Small
Rising interest rates and price appreciation are slowing mortgage originations in Las Vegas, but a growing percentage of homeowners here are bucking the national trend by refinancing their homes and getting home equity lines of credit, according to a research firm. The interest rates surpassed 5 percent for the first time since the downturn of the market in October 2008, when rates were 6.5 percent, she said. Someone with a credit score in the mid-600s can get a rate of 5.375 percent with a 5 percent down payment. “People trying to buy homes are running into problems because it’s cutting into their affordability,” Gatling said. It is normal during this time of year for the market to slow down, but with rising rates and uncertainty in the political environment, you are going to see a lot of people on the sideline to watch what happens.” What will help Las Vegas originations is people relocating here for jobs who won’t be deterred from buying in a market that has lower home prices than where they currently live, Hulsey said. The total number of originations in Las Vegas during the second quarter was 20,802, a gain of 7 percent over the second quarter of 2017. That was driven by a gain in refinance, up 14 percent to 7,290, and home equity lines of credit, up 28 percent over the past year to 1,817. Both of those large gains in Las Vegas go against the national trend, Blomquist said. Blomquist attributes price appreciation in Las Vegas for the gains in refinancing and home equity lines of credit. Hulsey said they’re seeing more Nevada customers turn to home equity products for “home improvements, make large purchases or consolidate other debts.” All of the second-quarter totals in Las Vegas are well below the peak of the market, according to ATTOM.
Luckily, you don’t need impeccable credit to buy a home. For instance, official FHA guidelines say you can get a 3.5% down loan with a 580 score. Apply with many lenders, especially if you have a lower credit score. Check your eligibility for a low-credit home loan here. (Oct 31st, 2018) Credit score minimums The following minimums apply to the major loan types available in today’s market Conventional/conforming: 620 minimum credit score FHA loans: 580 minimum score (3.5% down); 500 score (10% down) VA loans: No minimum score per guidelines, but lenders set minimums around 620 USDA loans: 640 minimum, although some lenders will approve lower scores Keep in mind that if you have banged-up credit, an FHA, VA, or USDA loan might suit you best. Conventional loans come with high rates for applicants with credit scores below 680. If you’re in the market to buy a home, it’s best to know your credit issues so you can start addressing them. Other times, you have to make timely payments for 6-12 months before your credit score starts rising again. How do I check my eligibility for a home loan? The first step to buying a home is to get pre-approved via an application with a lender.
Price-to-rent answers affordability questions If you’re debating whether to rent or buy, look to your local price-to-rent ratio for guidance. Verify your new rate (Oct 29th, 2018) Where buying a home’s more affordable According to a new analysis from Rentberry, Trenton, New Jersey, boasts the nation’s lowest price-to-rent ratio, making it a slam-dunk for potential home buyers. The median property price in Trenton sits at $149,700, while the average monthly rent is $1,500 per month, making Trenton’s rent-to-price ratio 8. Daniela Andreevska, content director at real estate analytics firm Mash Visor, says anything in the 15 and under range means buying a home is more affordable than renting. “For renters and homebuyers, this means that it is relatively cheaper to buy a property in a certain market rather than to rent there,” Andreevska said. “So, if you have the necessary cash for a down payment and have figured out the rest of your financing in such a market, go ahead and buy a home.” Other cities with low price-to-rent ratios include Toledo, Dayton and Akron, Ohio; Syracuse, New York; Davenport, Iowa; Hartford, Connecticut, Cedar Rapids, Iowa; and Lansing, Michigan. “In most of these locations, the median property price does not exceed $250,000, which is below the level in many other top markets at the moment,” Andreevska said. Home prices in the area average $1.4 million, while the average monthly rent is $2,780. “Some of these cities are infamous for the high real estate prices there, such as San Francisco, New York, El Paso, and Irvine,” Andreevska said. In such expensive markets, it makes sense that renting is the better option or even the only affordable one.” Show Me Today's Rates (Oct 29th, 2018) Get today’s mortgage rates Looking to buy a home in one of the nations low price-to-rent markets?
“Starting a new career as a real estate agent can be intimidating, to say the least. She spells out a few tips for part-time agents seeking to get into real estate full time and for workers jumping into the field while holding down another job. One key starting point is to find a broker who’s used to part-time or newer agents. “Obviously it’s not easy to be available for your clients at a time that is good for them if you work limited hours. “But if you work elsewhere during this time period getting things done might become quite difficult.” Another potential problem are situations when it’s not possible to meet certain timing requirements. “You already know that evenings and weekends are prime time for agents, and finding the time for a day off or vacation is going to be difficult if you want to succeed.” She says many prospective agents “decide to ‘test the waters’ before devoting themselves full time as a new agent.” Many associates begin as part-timers and some stay that way, Ford says, noting that it fits “single parents, persons looking to supplement an existing income, or retired persons who want to stay active and involved.” For potential real estate investors, there are income streams “to sustain you” while pursuing the career full time, says Jaren Barnes, writing for BiggerPockets.com. It takes “a little bit of a hassle” to get things set up, he says. “But once they are, you’re looking at making $200-$400 per appraisal.” Barnes acknowledged that becoming an appraiser “definitely takes a time investment.” The outcome, however, can be “working less than 10 hours and making a decent income.” Assistant Property Manager. Broker price opinion professional. Barnes says that becoming a stager “is something you can do right out the gate, without any professional experience.” Moreover, it can be fun, lucrative and fairly easy to develop a schedule so the work is part time.