Jane 's Blog
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Will mortgage interest rates rise? If they do what will happen?
The Federal Reserve's pledge to stop buying mortgages by the end of March is sparking fears among home builders, mortgage investors and even some Fed officials that mortgage rates could rise and knock the fragile housing recovery off course. Rates on 30-year fixed-rate mortgage have risen by a quarter of a percentage point in the past month to around 5.2%, according to HSH Associates, near their highest levels since September as the bond market has pushed up long-term interest rates amid signs of an improving economy.
The recent rise in mortgage rates could be a prelude to even bigger increases in coming months as the Fed steps away from support for the market. That prospect has some in the markets counting on the Fed to change course and keep buying past March, which many officials are reluctant to do.
If the interest rates goes up by 1% point, you will lose 10% of your buying power. In fact, you will pay the same monthly payment for a home purchased at $180,000 that you would currently pay for a home purchased at $200,000
There has never been a better time to buy. You only have until April 30th to capitalize on the First Time Homebuyer Tax Credit and The $6500 Tax Credit for current homeowners. And, you don't need to sell your home to get the $6500 credit! You can keep if for an investment and move up.
You can purchase a house for $270,000 with FHA loan and a down payment of only $9,500. The seller can help with buyer closings costs and you get a $6,500 or $8,000 tax credit.
No one can predict where the bottom is until it has made the turn to go up again but I guarantee you are in the safe zone. Don't delay - with home prices low, interest rates low, and a tax credit to boot, I just can't see a more "Perfect Storm!"
A "perfect storm" is an expression that describes an event where a rare combination of circumstances will combine to create an unusual phenomenon.
www.6404hollytrace.com - Bellevue area in Nashville, TN
www.toddpreis.com - Bellevue area in Nashville, TN
www.6645Valleypark.com - Bellevue area in Nashville, TN
www.1308BellevueCommons - Bellevue area in Nashville, TN
113 Ryan Court - Like New Home in Bellevue
113 Ryan Court - Somerset Farms - Nashville TN (Bellevue area)
If you like new construction, though want an established neighborhood, you need to take a look at this house. It has been renovated - new roof, new flooring, new door hardware, light fixtures, faucets, painted inside and outside. List price $205,000
House is located in Somerset Farms in the Bellevue are of Nashville
Is there anyone who can get a loan buy a home?
In the wake of the recent market turmoil, I've been asked this question more than once. People with good credit can get loans. If they are getting a conventional loan, their down payment requirement is likely to be higher than it might have been tow years ago. A buyer with good credit and 10-20 percent down should not have any problems
Based on the appraisal and the buyer's credit score, it may be possible to put as little as 5 percent down on a conforming conventional loan.
FHA loans have seen a big resurgence, largely because it is possible to put as little as 3-3.5 percent down on a conforming conventional loan. The maximum FHA in our area is approximately $417,500.
Interest rates remain favorable and steady, held down by the weak economy. Some observers believe there is no way interest rates can remain low as the US Treasury has to offer a competitive rate to bring in buyers of US debt, which has passed $11 trillion dollars.
To be sure of your ability to get a loan, the best thing you can do is check with a reputable lender and work with a loan originator to determine is you qualify and what loan is best for you and your family. Check with your local lender, there any many in the Nashville area.
The Jane Campbell Team
615-596-0169
Traceside - Nashville, TN 37221 (Bellevue)
Traceside an estalisished neighborhood located on the west side of Nashville, considered Bellevue. There are 402 homes. The homes are 4 sides brick. The community has an Olympic sized pool, which is required by metro to have lifeguards present during all pool house. There is an active swim team which starts after the school year get out. The playground and sidewalks make it great to getting outdoors.
Schools nearby Traceside are Top Metro Elementary Harpeth Valley, St Matthews and St Henrys. There are shops and retail in close proxmity, the famous Loveless Cafe, Natchez Trace and Percy Warner Parks.
Top Ways to Lose Your Home
Few homes buyers stop to think they could lose their home. But mistakes happen and many are made when the home was purchased.
Here are fool proof ways without meaning to, set yourself up to fail at home ownership.
1. Attending no money down seminars
Armed with trade secrets from the 3 hour sales pitch from books, tapes and CDs go forth and make dozens of low ball offer that get rejected until you find a seller who will carry all the financing at 18% interest with a 3 year balloon payment.
2. Wiping out savings
Put every dollar you can scrape together into a down payment for your home. If your short on funds, tell yourself you will make it up out of next week paycheck or make a cash withdraw on a major credit card to make up any difference
3. Refusing Professional Advice
Whatever you do, do not under any circumstances ask a realtor, mortgage consultant, lawyer or accountant for advice. What you do not know, you can ask Uncle Joe to explain since he owns a home and you do not.
4. Choose Exotic Financing
You know there is no reason to be concerned with terms such as indexes, margins, caps or negative amortization. Because you have a low interest rate and low monthly payment you feel confident that whatever happens later you can handle.
5. Passing up a home inspection
Everyone knows that home inspections are a waste of money and time. If a home has 4 walls, a roof and somebody is willing to occupy it, you can fix any minor problems that surface later.
Yes, follow one or all of these steps and you have the ability to lose your home!
What is a Short Sale?
There are many ways to lose a home but signing away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a "short sale."
A short sale happens when the lender is shorted on a mortgage, meaning the lender accepts less than the total amount that is due. If your mortgage is $100,000, but your home is worth, say, $90,000, you are $10,000 short, not including costs to close the sale such as, real estate commission, recording fees or title and escrow charges.
Sometimes, to avoid going through the costs of foreclosure, a lender will sanction a short sale by letting a buyer purchase the home for less than the mortgage balance while the home is in pre-foreclosure. A short sale in real estate is not always a pleasant transaction.
Although all lenders have varying requirements and may demand that a borrower submit a wide array of documentation, that your real estate agent should assist you providing.
If you are in financial hardship, unable to work with your lender on a loan modification, it is recommended to talk with a real estate agent to determine if selling your home is the best option even if a short sale is required. When talking with the agent, be sure to be upfront with your situation. That is the only way to get the best advice possible.
Open House 6337 Holly Trace Way, Nashville, TN 37221
6337 Holly Trace Way in Traceside - 37221
Open House, Sunday Aug 16th, 2009 2:00-4:00pm
5 bedroom, 3 full bath all brick home in Traceside with LOTS of upgrades. The best looking home in Traceside on the market. Come see for yourself!
Great Open Floor Plan In Traceside
4 Bedrooms and 2 1/2 Bath-- $285,000
Traceside
Open floor plan with great natural sunlight, check out all the windows. Kitchen lovers dream with this huge kitchen with gas cooktop. Refinished hardwoods, built ins, crown molding interior. Huge deck, invisble fence exterior.
Short Sale subject to lender approval. Lender states it should take no more than 14 days for approval..based on 1st lein holder payoff. Call agent to discuss! Prequal letter to be submitted with offer. Buyers agent to get half of commission.
The Jane Campbell Team--#615-596-0169
Keller Williams Realty Franklin - #615-778-1818
Quadplex
All units rented!! Property is in great shape. Appliances included. Washer/dryer hook ups. --$285,000
LIMITED TIME....Seller offering $5000. agent bonus! All offers to be contingent on seeing the inside as to not disturb renters. Call listing agent for details
| BR | FB | HB | Appliances | Interior | Rent | Deposit | Lease |
| Unit 1 | 2 | 1 | 1 | Disposal / Refrigerator / Dishwasher / Range / | $625 | $100 | Monthly | ||
| Unit 2 | 2 | 1 | 1 | Disposal / Refrigerator / Dishwasher / Range / | $600 | $100 | Other | ||
| Unit 3 | 2 | 1 | 1 | Disposal / Refrigerator / Dishwasher / Range / | $575 | $ | Year | ||
| Unit 4 | 2 | 1 | 1 | Disposal / Refrigerator / Dishwasher / Range / | $600 | $300 | Year |
Call for more Info!
The Jane Campbell Team-#615-596-0169
Keller Williams Realty Franklin-#615-778-1818
Come see this view!!
Come See The View!! 3 Bedroom and 2 1/2 Bath! $200,000
Good flowing layout. Stainless appliances, kitchen/breakfast area with updated lighting, large master suite. Basement major expansion 920sqft; ladies you can have your craft room/hobby room and guys you have the shell of your mancave!
Sloping backyard.This is move in ready upstairs and your buyers can custom finish the basement. Basement has 920 sqft electricity, base flooring, ready to be finished. Easy to show. Buyers and buyers agent need to verfiy all pertinent information.
Call for more information!
The Jane Campbell Team --#615-596-0169
Keller Williams Realty Franklin--#615-778-1818
Renovated Pottery Barn Style Home
Renovated Pottery Barn Style home on great lot. 4 Bedrooms and 2 1/2 Bath!!! $215,000
Located between Sylvan Park and the edge of West Meade without the price. Easy acess to interstate and new shops and restaurants in the area. All brick home set on almost a 1 acre lot. Separate 2 car garage - this house has it all.
Updated kitchen and bath. Large master with fireplace. Custom paint colors throughout. Basement apt or use for extra living/office, bonus, bedroom, kitchen, bath.
Lots of living options or the house - live in as one house or 2 separate dwellings for in-law suite, teen suite or even a renter. Basement apt has separate entrance, though would have shared laundry. Storage shed does not convey with property.
Contact me for further questions and information!
The Jane Campbell Team- -#615-596-0169
Keller Williams Realty Franklin --#615-778-1818
What is the Buying Power of Women in Real Estate?
Record numbers of single women are buying homes. If you're a single woman who wants to buy a home, the good news is the market is wide open for you. The stats from the Joint Center of Housing Stats say:
•· More than one in five home buyers is a single woman.
•· Twice as many unmarried women are buying homes than single men.
•· Single women make up more than one-third of the growth in real estate ownership since 1994.
Top Three Reasons Unmarried / Single Women Buy a Home
•1. Strong desire to own her own home.
•2. Need more space or want smaller home.
•3. Relocate closer to job, school or family.
Real Women Who Buy Real Homes
Women home buyers come in all sizes, shapes and ages. They are divorced, never married, separated, widowed; some have children, others live with friends or partners and many live alone.
Trends for Single Women Home Buyers
•· 3 out of 4 women spend less than $200,000.
•· Prefer 2 bedrooms or more.
•· Less likely to choose new construction.
•· Buy in city over suburban areas.
•· Will compromise size & cost to get other amenities.
•· Will not compromise on location or quality of neighborhood.
•· Prefer condominiums with well run homeowners associations over single family homes.
•· Smaller spaces are acceptable.
•· Desire security and / or gated access.
•· Like to engage in social interaction with neighbors.
•· Want close proximity to stores, shopping and fitness centers
What does getting "ahead of the curve" mean, when selling my home in a down market?
The concept of pricing ahead of the market relies on the notion that the market moves in a direction up or down. In a rising market, buyers are frequently will to pay more that they would if the market were static. This is because they think the prices will go up even more and they don't want to miss the opportunity.
What about in a declining market? Here, sellers need to price their homes for less - as best it can be determined at a given moment - what their property is worth. They need to be ahead of the market. Why? Because in this situation buyers are worried about paying too much. If the market is declining they don't want to pay what is property is "worth" today, because they expect it will be worth less tomorrow.
There are importantly different consequences to failing to get ahead of the market depending on whether the market is going up or down. In an up market, if you don't price ahead of the market, then you might not get as much as you could have. This may cause a bit is wailing and gnashing of teeth, though you will still get your home sold.
On the other hand, if you fail to get ahead of the market when the market is in decline, the consequence is not that you simply receive a lower price, the consequence is that you don't get a sale at all. Sellers are understandably concerned in a ahead of the declining market that if they did get ahead of the market they would then just receive offers even lower than their asking price. But this is where the negotiations come in. The first order of business to always to have someone to negotiate with.
As we approach the spring season there may need to be a hard look at the realities of the market place, and trends of the general economy. If the supply is outweighing demand, then get out ahead of the market.
What is the FHA (K) Renovation Loan
An important tool for community and neighborhood revitalization, the FHA 203(k) loan offers flexible qualifying and low down payments. The 203(k)loan program offers borrowers the resources to rehabilitate a home that may be in need to repair, either the home that they currently love in or that special fixer-upper opportunity. One single loan is used to pay for the purchase (or refinance) and the cost of renovating the home.
Made available to certain lenders by the US Department of housing and Urban Development, the FHA 203(k) program has already provided many buyers with the funds necessary to buy their first home or greatly improve a current home. The FHA 203(k) loan is available to borrowers of all income levels, to homeowners who plan to occupy the house and for homes with one to four units
Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made.
When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan.
203K Eligible Borrows
-Owner occupants - purchase or refinance
-Non-profits
-Investors not allowed
Types of 203K Loans:
30-15 year fixed rate
One Year ARMS
Assumable to a qualified buyer with no money down
Eligible Properties:
Single family dwellings
Condominiums
Townhomes
Mixed Use
1-4 Unit buildings
For more specific information you can contact your mortgage professional or contact me and I can provide you with someone with experience in this type of mortgage.
Have Home Prices Hit Bottom?
There is only one way to know that the real estate market has bottomed out and that is when the real estate prices start going up.
there is no guarantee that prices have hit bottom yet- but that doesn't mean that you can't get a great deal now. There's no telling how long the housing crisis will lag on. Here's what you need to know before you start shopping.
Gary Keller, the author of "The Shift" explains it as the real estate buyers being in the lucky or unlucky zones or purchasing a home in the "safe" zone.
Gary says "You know the market has bottomed out when it starts back up and you know the market has peaked when it starts back down. The safe zone is where smart people plan to buy and sell. Anyone who buys at the top of a real estate market is just unlucky and anyone who buys at the bottom of a market is just lucky."
Gary goes on to say that "people who buy in a buyers' market are the smart ones. They're buying in the safe zone and living in the area of certainty. They're not unrealistic and they're not greedy. They know they can't predict the end of a bust, but they can see when a market has fallen considerably."
Rule #1 You can't time the bottom
You may think about trying to time the bottom. Resist. It's harder than you think and the best buyers have had in two decades with inventories up and mortgage rates low.
Rule #2 One reason to buy now-mortgage rates
Homes are plentiful and will remain so, but financing will be getting more expensive. There could be a penalty for waiting to buy even if prices fall.
Top Ways To Lose Your Home
Few home buyers stop to think they could lose their home. But mistakes happen and many are made when the home was purchased.
Here are fool proof ways without meaning to set yourself up to fail at home ownership:
1. Attending No Money Down Seminars
Armed with trade secrets from the 3 hour sales pitch from books, tapes and CDs go forth and make dozens of low ball offers that get rejected until you find a seller who will carry all the financing at 18% interest with a 3 year balloon payment.
2. Wiping Out Savings
Put every dollar you can scrape together into a down payment for your home. If you are short on funds, tell yourself you will make it up out of next weeks paycheck or make a cash withdraw on a major credit card to make up any difference.
3. Refusing Professional Advice
Whatever you do do not under any circumstances ask a realtor, mortgage consultant, lawyer or accountant for advice. What you do not know, you can ask Uncle Joe to explain since he owns a home and you do not.
4. Choose Exotic Financing
You know there is no reason to be concerned with terms such as indexes, margins, caps or negative amortization. Because you have a low interest rate and low monthly payments you feel confident that whatever happens later you can handle.
5. Passing up a Home Inspection
Everyone knows that home inspections are a waste of money and time. If a home has 4 walls, a roof and somebody is willing to occupy it, you can fix any minor problems that surface later.
Yes, follow one or all of these steps and you have the ability to lose your home!
Best Price Sq. FT.
Come see this extremely well priced home. Over 2900sqft for $315,000!! Check it out! Fantastically flexible floor plan. Many options for your lifestyle: office, nursery, formal living, teen suite, hobby room, Grand Master Suite with private retreat with fireplace. Lots of hardwood, prof lighting, great tile flooring in master bath.
The Jane Campbell Team
Keller Williams Realty
Call Today! 615-596-0169
Home Staged By:
B Lucas Thrower
Transformations, Interior
Redesign Home Staging
#615-481-1399
Over $30,000 in Upgrades!
$345,000
Over $30,000 in upgrades- not like any others in Traceside-generous size dining room, floating wall w/ built in bulters pantry and large built in pantry, elegant hickory floor downstairs, full bath downstairs and beautiful granite! This house is a definate must see!
The Jane Campbell Team
Keller Williams Realty Brentwood
Call Today! 615-596-0169
Home Staged By:
B Lucas Thrower
Transformations, Interior
Redesign Home Staging
#615-481-1399
How to Improve Curb Appeal
A large percentage of homebuyers decide whether or not to look inside your house is based on curb appeal. You can help to make sure they want to come inside by spending some time working on its exterior appearance. It can be difficult to look at your own house the way that potential buyers do, because we become accustomed to the way something looks and functions, we can't see it's faults.
The next time you come home, stop across the street to get a good view of the house and its surroundings.
1.What is the first impression of the house and yard area?
2.What are the best exterior features of the house or lot? How can you enhance them?
3.What are the worst exterior features of the house or lot? How can you minimize or improve them?
Take photos of the home's exterior. If you have a digital camera view the color versions first, then remove the color and look at it in black and white, because it's easier to see problems when color isn't around to affect our senses.
Make a list of the problem areas you discovered. Tackle clean up and repair chores first, then put some time into projects that make the grounds more attractive.
-Kill mold and mildew of the house, sidewalk, roof or driveway.
-Stow away unnecessary garden implements and tools.
-Clean windows and gutters.
-Pressure wash dirty siding and dingy decks.
-Edge sidewalks and remove vegetation growing between concrete or bricks.
-Mow the lawn and get rid of weeds.
-Rake a dispose of leaves, even if your lot is wooded.
-Trim tree limbs that are near or touching the home's roof.
-Plant flowers or add flowering pots for the front porch.
How Can I prevent a Wet or Damp Crawl Space
Over these past few weeks, we have experienced a lot of rain in our area. All that rain can cause frustrating problems for homeowners if it gets into your crawl space or basement. These problems can be both immediate and long term. Wet crawl spaces are sources of high humidity, which can produce surface condensation, mildew and musty odors. Such moisture can cause further long term problems with floor joists, beams, subflooring etc.
Many wet crawl spaces are caused by surface water which is not adequately drained away from the foundation wall.
-Roof water if no guttering is present.
-Roof water if the guttering leaks or overflows because of clogging from leaves, twigs, birds nests.
-Roof water if the downspouts are clogged or do not have sufficient means at their outlets to drain water away from the foundation wall. Frequently a downspout ends at the corner of the house without a splash pad/block leaving roof water to concentrate at that point and seep into the soil next to the foundation wall. A typical 2000sqft roof can produce almost 1250 gallons of water during just 1 inch of rainfall. If the rainfall is steady and prolonged, the opportunity for this roof water to soak into the ground next to the foundation wall is high.
-Excessive watering of flower beds and shrubbery around the foundation wall.
-Rainwater runoff from the adjacent lawn, walks or driveway area if the landscaping forces water to drain toward the house instead of away. If surface run offs directed toward the foundation wall, the water will pond and eventually soak into the soil.
"A teaspoon of prevention is worth a gallon of cure" certainly applies to avoiding water problems. A few steps can help keep water away from your home.
-Check your gutters several times a year to insure they are free of debris.
-Add downspout extensions so the water will be sent away from the house.
-Regrading the soil around the foundation of a home is another way to help direct water away from the crawl space.
If you have taken these precautions and you still have water, contact a professional waterproofing company for assistance.
Why Should I Buy Now?
While we hear in the media that it is a buyers market, it should be playing to a buyer's advantage. Buyers, who should be swooping in to make the most of stable housing costs and favorable interest rates, are sitting by, waiting.
While prices have leveled and in some areas home prices may drop, it is likely that any decreased prices will be accompanied by increased financing costs due to rate cuts by the Fed. This means that any money saved on paying less for a house in a few months time will be offset by having to pay a mortgage at a higher interest rate make the "playing the waiting game" a waste of time (and very little fun.)
This rate increase isn't just speculation. Just a couple of weeks ago, in early February, the fixed m ortgage rate jumped a full half-percent, making it the fastest increase in 20 years.
The table below demonstrates how even as home prices drop, monthly mortgage payments basically stay the same due to increase interest rates:
Scenario 1:
Prices decrease by 5% and interest rates increase by 0.5%.
Scenario 2:
Prices decrease by 10% and interest rates increase by 1%.
Today | Scenario 1 | Scenario 2 |
Home Price $218,900 | Home Price: -5% $207,955 | Home Price: -10% $197,010 |
Interest Rates 6.04% | Interest Rates: +.05% 6.54% | Interest Rates: +1% 7.04% |
Monthly Payments $1054 | Monthly Payments $1056 | Monthly Payments $1053 |
Since the interest rate is still hovering around 6%, get out and buy today!!
21 Vaughns Gap Road #E78
Recently updated - new custom paint, new light fixtures and door hardware, bathroom renovated with vanity, mirror and fixtures. Tile flooring within the last 2 years. Refrigerator negotiable.
Washer/Dryer connection for stackable washer/dryer available in additional master bedroom closet. Recently renovated clubhouse, new roof 2007. Community pool, grill, onsite laundry facilities.
Call if you have any questions!
The Jane Campbell Team-(615) 596-0169
Keller Williams Realty Brentwood-(615) 376-5123
What Value Can I Expect Out of Remodeling My Home?
Remodeling Magazine publishes an annual Cost vs Value Report. Here are a few highlights from their report.
On most projects the value of remodeling trended down in 2007 compared to 2006. The likely culprits for the year to year drop; rising remodeling costs and slowing home appreciation brought on by lackluster housing markets.
The cost recouped on a given remodeling project depends on a wide variety of factors. These include the condition of the rest of the house, the value of similar homes nearby and the rate at which property values are changing in the surrounding area. A home's urban, suburban or rural setting also affects its value, as does the availability and cost of new and existing homes in the immediate vicinity.
Here are findings on some remodeling projects:
Regional area - East South Central - AL, KY, MS, TN
2007 Averages
Project | Job Cost | Resale Value | Cost Recouped |
Bathroom | $14,559 | $12,155 | 80.6% |
Major Kitchen | $52,356 | $42,498 | 81.2 |
Minor Kitchen | $20,412 | $17,341 | 85.0 |
Home Office | 25,826 | $16,221 | 62.8 |
Sunroom | 65,273 | 40,764 | 62.5 |
Roofing | 16,987 | 12,067 | 71.0 |
Windows (vinyl) | 9,571 | 7,123 | 74.4 |
To read the entire report visit www.costvsvalue.com
1023 Alice Street
New carpets, fresh paint, rebuilt HVAC within this past year, new H2O heater . Cute house with a few extras - pantry, screened in deck/patio, front porch.
For more information call:
Jane Campbell Team
Keller Williams Realty
615-596-0169/615-376-5123
5633 Traceside Drive
Fantastically flexible floor plan;many options for your lifestyle; office, nursery, formal living, teen suite, hobby room Grand Master Suite private retreat w/fireplace. Lots of hardwood, prof lighting, great tile flooring in master bath.
Visit Website for more information and pictures! http://www.5633traceside.com/
