All About Realestate

By Ed Lathrop

The real estate market is full of bargains these days. Homes that sold for $500,000 a year or so ago can probably be picked up for less today because the housing market has become soft or has turned into what is known as a buyer”s market.

So, when you”re out there looking for a home, the big question is, “for my mortgage, how much can I borrow?” While the answer may be delightfully surprising, the real test comes when you figure out how much you can truly afford. Therefore, in this article we will give you the information you need to determine how large of a mortgage you can make the payments on and then you can go look for your dream house.

How much you borrow is up to you

The way the real estate mortgage market works today is anybody with decent credit can get a mortgage for just about any amount he asks for. It”s really gotten crazy! Through negative amortization mortgages people have gotten mortgages for way more than they could afford and they were actually talked into this overextending of themselves by the lenders.

This is what you want to avoid. The lenders make more money for each additional dollar they lend you. Realtors have absolutely no motive to try to make sure you can make your mortgage payments because they get their percentage at closing. After that it”s up to you. Personally, I believe the buyer having this information will make much better choices than a lender or a realtor would make.

The 28/36% rule

Back in the 1980”s, they used to determine how large a mortgage a potential homebuyer could afford by using the 28/36% rule. Using this rule, the lender would first find out if the applicant had any debt before the purchase of the property. This debt would include car payments and credit card payments.

If the applicant had none, the lender would multiply the applicant”s total monthly income by 36%. The monthly income would be the yearly income divided by 12. Though this might seem like an oversimplification, it is calculated that way instead of using 4 weekly paychecks as a month or 2 biweekly paychecks as a month because this amount would be smaller than the true monthly pay received.

So, if someone made $6,000 a month, it would be multiplied by .36, which would give an answer of $2,160 per month. This would be the amount of the monthly payment the applicant would be allowed to borrow up to. They would use this amount without adding on taxes or homeowner”s insurance.

$2,160 a month would pay for a mortgage of $324,000, if the mortgage interest rate was 7% and the term of the mortgage was 30 years. The standard in the lending business is the mortgage can be up to 80% of the price of the property, so the price of the property could be as high as $405,000. Of course, the buyer would need an $81,000 down payment.

What about that car payment?

If the applicant had other monthly obligations, such as a car payment, the lender would use 28% of the monthly income. In this case, the applicant could make monthly payments of up to $1,680. If again, the rate was 7% and the term was 30 years, $252,000 could be borrowed.

I am a proponent of the 28/36% rule. It is more liberal than the old standard from the 50”s, which was not to take on any larger monthly obligations than the amount of your weekly paycheck, but the 28/36% rule does give a proven guideline.

There is one last word of caution. Make sure to only apply for a fixed rate mortgage. These days, lenders will qualify people at some low introductory rate and then a year down the road the minimum monthly payment rises to well above the amount the applicant was approved for. Don”t go there! Get a fixed rate mortgage only and there will be no future life ruining surprises.

About The Author

Ed Lathrop is a successful Real Estate investor. He has developed EzCalculator, which shows you how to save $100,000 on your mortgage. Come visit this free site at http://ezcalculator.com. Find out how to get your free amortization schedule at: http://freeamortizationschedule.net.

By Sean Rasmussen

As an investor, or a soon to be investor, it is essential to know when to jump (and when to run, for that matter.) For those considering property options as their method of being caught, it can take some time to get the necessary tools and resources in line so that you can go for it. If you are new to investing, or new to investing in property options, it may be necessary for you to spend a bit of time mulling over your options and finding just the right moment to make your decision. To help you, consider these tips and strategies on property investment that may help to make your landing a bit more protected, so to speak.

Realize It Takes Skill, And Risk

One of the most important things to have in your back pocket is a good knowledge set. For those planning to invest in property options, it is imperative that you have the necessary skills. You should know what a property option is. You should also understand how they are used. Most importantly, you should be able to see how this type of investment will make you money. It also helps to have a mentor, or guide, to help you through any questions that you may have.

It also helps to have enough ambition and courage to take a risk. No matter how well prepared you are for your property investment, chances are good that you will find yourself needing to take a risk. The fact is property options are one of the most secure opportunities available to property investors today. They are so much so that plenty of people are using them to get ahead. Just a decade ago, they were not used as widely simply because people did not realize the potential in them. Nevertheless, with all of this security, there is still a risk. If you want to be successful in property options investing, then you need to be willing to take a risk.

Guidance For The Right Decision

One of the best strategies that you can use for property investing is to have a mentor. As mentioned, a guide can help you through the process without causing you any concern. For example, will you know when or if to sell your option? Will you know when to make the move or will you hold on too long, or not long enough? Having someone by your side that can provide you with a bit of leverage can help.

One of the key aspects of investing in property is getting your feet wet. As a new investor, it is difficult to have the necessary experience to make the right decisions from the start. This is normal and it is allowable. Yet, when you have some guidance in your back pocket, you are much less likely to make the wrong decision. If you have not done so yet, take the time to consider where you stand in terms of experience and if you need it, find a mentor to guide you. Not only does this reduce your risk by giving you an extra hand, but it also gives you the experience that other investors do not have. It can help you to feel better about taking that ultimate jump, too.

Property options are safe and they make for one of the best choices today in property investing. When you do need help in deciding when to get started, find a qualified mentor to help you. Do not work with just anyone, but someone that you can trust based on their past experiences. It only adds value to your resume and definitely helps to provide the safety net for that jump you are about to take.

About The Author

Sean Rasmussen is a Property Investor and Stock Market Trader. http://www.propertyoptions.tv is about Australian Mark Rolton and Massland. You can locate his Property Options Blog at http://www.propertyoptionsblog.com.au

By Sean Rasmussen

Property options are a method of investing in real estate that many people do not know much about. One reason for that is because they simply are a new to the scene type of investing. While they have been available to be used for quite a long while, it hasn”t been until recently that more people have “learned” about them and just how potentially profitable they can be. Yet, plenty of well known investors have used these options to help them to build wealth, and you can as well. The goal is to think of property options as a different type of property investment. Instead of considering it a real estate transaction like purchasing a home, consider it more along the lines of an investment in a business.

What Is An Option?

It is important to define what a property option is for those that do not know. An option is actually just a legal document that will be used to control a piece of property. This type of ownership in a piece of property is not the traditional type. More so, it is a unique way of taking control of the property so that you can see a profit in it. When you take advantage of a property option, you are able to benefit monetarily from that real estate. One way that you will benefit is through the simple growth of the property.

The most important and most profitable way to control the property, though, is to take advantage of the value that can be added to the property. When a massive amount of value is added, you will reap the rewards. A Development Approval is used to see this benefit. This is a simple document that comes from the local council and allows for you to develop the property. As the property is developed, correctly, the benefit is that value is added to it.

The added benefit of the property option is that you do not have to settle. You will have the option to purchase the property, if you want to. This means that you do not need to do so and therefore you do not need any funding for the settlement of the property. Added value comes in the form of having the ability to profit from the property investment without having to pay for repairs or having to find tenants to live in the property.

For many people, this is where the benefit comes in. As you can see, when you purchase property options as your tool for property investing, you are purchasing the ability to profit without having to borrow money from a bank to do so. You risk very little because you will correctly select the right pieces of property to invest in. For those that want to see the profits of owning real estate, but do not want to deal with the cost of doing so in the most traditional sense, property options work well. In addition, for many, they are the best bet they will see. Consider how well they fit into your wealth building plan.

About The Author

Sean Rasmussen is a Property Investor and Stock Market Trader. http://www.propertyoptions.tv is about Australian Mark Rolton and Massland. You can locate Sean”s Property Options Blog at http://www.propertyoptionsblog.com.au

By Kari Shea

Are you in the market to buy a new home? Well, even if you”ve decided to entertain the notion at 3:30 am on a Tuesday in San Diego, you can start to do your research online and view homes around the corner or around the world. Technology has revolutionized the real estate market for the modern home buyer.

So, you want to start looking for a new home. Look no further than your computer! Simply open up a search engine and look for listing from your favorite realtor. You can often search by price and city. When you see a home you like, you can often take a virtual online tour, which consists of a series of photos of both the interior and exterior of the home.

Think of the hassles you avoid with this process! Before the advent of such technology, you would have to physically get in your car and drive from house to house, perhaps using the newspaper or a home buyer”s guide to find addresses of interest. Then, you”d have to hope for an open house or call a realtor to set up an appointment to view the house”s interior. Talk about a time-consuming hassle!

Today, you can see the property, its list price and many other details with a simple click of a finger. You can learn many other valuable facts, as well. Research the history of the realtor you intend to work with. Are they reputable? What do their past clients have to say about them? What are their affiliations and areas of expertise? There are many realtors to choose from, and it”s in your best interest to find the one that matches best with your needs.

Perhaps you don”t want to sift through endless amounts of homes online. Pick a realtor instead! Learn about them online, and then contact them about finding the perfect house to fit your needs. Once you have learned about their reputation and experience online, send them out to hand select listings for you to view in person based on the features you desire.

Another great benefit of shopping for a home online is the availability of resources to research. Learn about the school systems, property taxes and crime statistics in the neighborhoods you”re considering. Find out what restaurants, grocery stores and movie theaters are in the area. You can even use Google Earth to try and figure out what kind of car your prospective neighbor drives!

It”s wise to educate yourself on the different types of mortgages available. Learn how to boost your credit score to qualify for the best rates available. Read about closing process before you sit down to sign papers. Decide ahead of time whether or not you want to go with points or take a lower rate. Best of all, you will feel more comfortable with the whole process by reading about what will happen ahead of time. Technology has truly revolutionized the home buying process, so put it to work for you!

About The Author

Kari Shea, of http://www.shea-realestate.com {Shea Real Estate & Investment Group}. Learn more about their services at: http://www.shea-realestate.com {www.shea-realestate.com}.

By Thomas Bladecki

Areas that experienced a boom during the recent inflation of real estate are not in jeopardy. As property values begin to get back down to where they should have been to begin with there are many homeowners that are facing foreclosure. Prices that were rising on a steady and fast pace, making investors a lot of money are beginning to level out and over inflation is a huge problem in just about every major metropolitan area. This has forced foreclosure rates to all-time record highs, and many of the new investors that attempted to get in on the “boom” are losing their properties to foreclosures. Not being able to sell the properties as quickly as expected the markets too a turn for the worst and they are caught right in the middle of it. Las Vegas was a prime example of where this happened to many investors, over the past couple years foreclosures have been rapidly increases each month.

When real estate markets make an abrupt and dramatic change, the result is an increase in the number of foreclosures. Even the “smart” investor can be effected if these changes are dramatic enough, no one is safe, especially when the markets make as large a change as in the past couple years. Buying real estate, even in a booming market, is not cheap however; the return on investment sometimes makes the risk worth it. The big question is, “What happens when the market values go stagnate, or decrease?” This is a receipt for disaster if the investor is new and not capitalized properly. Most investors advise that holding onto property until the market recovers is the best solution, or moving into the property to reduce costs is an option, however if the investors has multiple properties this can create a huge problem. If moving or cutting costs is not possible then you will end up in the same positions as many investors that bought in Las Vegas.

The Las Vegas foreclosure market is currently #1 in the country based on recent data from, RealtyTrac. While this is not surprising to some, this is reality to the hundreds of thousands of investors that bought property in Las Vegas.

Holding on to property are the market has reached its peak is not easy, a lot of properties in the Las Vegas foreclosure market are worth substantially less then what the current loans on them are for this creates a problem for the homeowners. Selling a property that is worth less then the current market value is not easy, especially when the market is flooded with properties that you can purchase at a bargain. Renting property is difficult too, with the rising foreclosure rate, homes are being rented out for less then the monthly mortgage payment, while this will reduce the costs of holding on to the property, and you still have to make up the difference each month. This is difficult for investors that do not have the money to pay the differences each month. Unfortunately, many investors are forced to add their properties to the rising Las Vegas foreclosure rate.

On the other hand, what is a misfortune for one investor is an opportunity to another. The Las Vegas foreclosure market is flooded with properties that have great potential to turn a profit in a couple years, once the market recovers. While this is the case in many cities, Las Vegas offers a great opportunity for new investors, or people looking for a chance to start over again.

About The Author

Thomas Bladecki is the author and can provide additional information about foreclosures and the current real estate markets visit http://www.home-foreclosure-help.org for more info.

By Seb Frey

Buying a foreclosed property at a trustee”s sale or auction can get you a really great deal, but there are a few things you need to know before you start buying up such property! It”s not always the deal you imagine and you”ll want to know a little something about the house or land before you invest in it.

Property sold via a trustee”s sale/auction is sold as is. You pay for it, you get it, warts and all. For the majority of homes, this is fine and you will be getting a great deal on a piece of property, but not every foreclosed property is a deal. Foreclosure sales are usually by the bank or lender that the home owner couldn”t pay.

When a home is on the market due to a foreclosure, it pays to keep very close tabs on the estates that you are interested in. The sales will often end up being postponed because the home owner is attempting to save their assets or due to processing times. It”s easy to lose track of which property is still up for sale, but this can work to your advantage if you are meticulous about keeping records and making sure to track when each property you want is postponed and why. Others will either lose interest or not be able to track the property, meaning you”ll have less competition when it comes time to bid. You can track a property via the Trustee Sale Number.

Once bidding opens up on a foreclosed property, you have a very good chance of seeing it go to sale. Trustees don”t usually allow bids to be placed until they are certain that they are ready to sell. Bidding may open up anywhere from the day before to the time of the actual sale, making it very important to stay on top of things. You need to know the instant you can start bidding and keep an eye on other bidders.

Before you can bid in a Trustee auction, you have to “qualify”. To qualify, you will need to show the auctioneer that you have the money to pay the bids you”ll be making. This can be done with either cash or checks. In general, you”ll want to bring several checks that are filled out in the Trustee”s name, or cashier”s checks that you can endorse over to the Trustee. If your checks exceed the amount you bid, you will be refunded the excess.

If you are the highest bidder, you can expect things to proceed fairly rapidly. You will be asked how the title will be held and will have to sign the check over to the Trustee. You will either receive a recorded deed at that time or it will be sent to you after the fact. The process usually takes less than a fortnight, making you the proud owner of a piece of property very quickly.

Buying a property at a trustee”s sale or auction can be a good way to find cheap properties to invest in. Do your research and know what you are getting into and exactly how much a house is worth before you begin bidding and you”ll be able to earn a good profit on the property.

About The Author

This article was written by Seb Frey, a Real Estate Broker and Realtor in Capitola, California (Santa Cruz County). Seb runs the county”s most-complete Real Estate web site, http://SantaCruzHomeBroker.com. Seb is Fluent in Spanish, and delights in working with with buyers from all walks of life.

By Paige Martin

If you are looking for a new house, you may want to look at the Houston Heights neighborhood in the Houston Texas market. In the middle of the US housing slump, the Heights area continues to grow at a strong rate.

The 2008 Houston Real Estate Investing Trends report analyzed over 10,000 single family homes sold in the Houston, Texas region from 2002 – 2007, and this neighborhood had some of the highest home price appreciation in the region.

The media sale price per square foot for Houston Heights homes appreciated over 20% from 2002 -2007 and 3% alone from 2006 – 2007.

Before you take the decision whether it is worth to buy yourself one of the homes for sale Houston Tx, there are many more things you need to know about the town.

The Heights one of Houston”s Fastest Growing Neighborhoods

Houston Heights is a large community located in northwest-central Houston, TX. This neighborhood is known for its Victorian homes, shady boulevards and quaint shops and was developed on the strength of one man”s vision for the city of the future.

This community was quickly established as an alternative to the crowded, turn-of-the-century Downtown Houston. This suburb of Houston four miles north of the downtown area in central Harris County, was built on and named for its site on high land, bordered by White Oak Bayou.

Houston Heights is a diverse small town community in the heart of Houston. This neighborhood is Houston”s largest intact historic subdivision. Known as Houston”s first suburbs, the Heights is home to many young professionals who want to have all the amenities of the city, with a little space to call their own.

The streets are lined with Victorian style mansions and charming restored bungalows and is recognized as one of Houston”s most stable yet diverse communities. Just North of the eclectic Montrose district and minutes from Downtown, the Heights is one of the city”s fastest growing neighborhoods. This neighborhood is also home to the Art Car Museum, a tourist attraction.

Many of the older homes have been remodeled and over 100 Houston Heights structures are registered in the National Register of Historical Places. There are approximately 3500 single family homes in the Houston Heights with an average sales price per sq.

The name then was a natural title and gave confidence to people hunting a healthful location. Then on April 29, 1893, records show a deed from the Omaha and South Texas Land Company to the Houston Heights Street Railway Company setting out the right-of-way for the single track on either side of the esplanade, the east side turning on Boulevard to run west on 19th Avenue to Railroad Street, then south on Railroad to 17th Avenue and back to the west side of the esplanade on Boulevard.

The Suburbanite on April 18, 1913, gave the following article with the headline as is: HOUSTON HEIGHTS ON THE MAP. The station house on the Missouri, Kansas and Texas Railway has been cleaned up, repainted, and provided with seats for patrons. It was called the local Opera House and was situated between Ashland and the water works on Railroad, on the north side of 19th Avenue. The sign proclaiming the neighborhood in great big letters is in conspicuous places at the east and west ends of the building. This is the first time Houston Heights has been recognized by any railroad and thus how the neighborhood got on the map.

When the City of Houston annexed the Heights in 1918, it did so with the provision that the Heights would remain dry. Many other sites and buildings in Houston Heights have been designated as Recorded Texas Landmarks, as well as City of Houston Landmarks and Protected Landmarks. The Houston Heights is, without a doubt, a true historic neighborhood. The city council recently acted to encourage appropriate restoration and preservation in the Houston Heights by approving the recommendation of the Houston Archaeological and Historical Commission to establish the Historic District West.

Houston Texas is one of the country”s most affordable major MSAs. Within Houston TX, we would recommend looking at the Houston Heights neighborhood. Whether you are interested in buying or selling a home in the Heights real estate market, the Internet is a great place to begin.

About The Author

Search homes for sale: http://www.houstonproperties.com/houston-homes-for-sale.html. Get free home sale tips: http://www.houstonproperties.com/sell-houston-home.html. Paige Martin, Realtor, Martha Turner Properties.

By Paige Martin

Everyone knows that buying a home is a major purchase. It”s such a major purchase in fact, that it”s probably the largest purchase a homeowner will make in their lifetime.

However, there are many costs aside from the purchase price that need to be considered so that homebuyers, especially first-time homebuyers, aren”t surprised to learn that their home is costing them more than they had originally thought.

Closing costs are generally the first of the expenses that will come up, after the sale of the home has been completed. These include legal costs, property and land transfer taxes, and utility adjustment costs. Legal costs will need to be paid to the lawyer that looked over the final sale contract and any legal help that was provided when deciding on the terms of the contract. Lawyers also help with the mortgage, title searches, getting a new title registered, and collecting the necessary documents when one is purchasing a new home.

Land transfer taxes may also be required upon closing. These taxes are applied when property changes from one owner to another. While they are not applicable in every area, it”s important to know if you will be responsible for them.

A property survey may need to be done to determine the property” boundaries, any encroachments or right of ways. This will give the homeowner a better idea of what their property specifically includes and will be very helpful in the future. Title insurance can be purchased in place of a property survey but it will be a necessary expense either way.

Interest adjustments will play a part of the mortgage. These adjustments make up for the amount of time between when the property was purchased and when the first mortgage payment was made.

A home inspection should be done to ensure that there are no major concerns with the property such as mould or faulty plumbing and electrical services. These inspections are usually done before the final purchase and a licensed contractor will come in to complete the inspection.

Many homebuyers want to make sure that they are paying fair market value for a home and for this reason, they may want to call in an appraiser who will give them a good idea of the home”s worth. This is another expense that often happens before the final purchase.

These are just a few of the associated costs with buying a home. It”s important that homebuyers familiarize themselves with exactly what buying a home will cost them so they can properly prepare their budget before they make that large purchase.

About The Author

http://www.HoustonProperties.com, features 500+ pages of Houston home data. Search homes for sale: http://www.houstonproperties.com/houston-homes-for-sale.html. Get free home sale tips: http://www.houstonproperties.com/sell-houston-home.html. Paige Martin, Realtor, Martha Turner Properties.

By Daniel Riley

The Federal Housing Authority (FHA) insures loans against default, protecting both lenders and borrowers. It neither makes loans directly nor sets the interest rates on loans it insures. FHA insured loans can be used to purchase new or refinance existing 1-4 family homes, condominiums, or mobile or manufactured homes on a permanent foundation.

Many excellent reasons exist to select an FHA mortgage, particularly if you fit one of more of the following qualifications:
* you are a first-time homebuyer;
* you are unable to offer much of a down payment;
* you would like to have the lowest possible monthly mortgage payments;
* you have concerns regarding monthly mortgage payments increasing at some point;
* you have concerns regarding the consequences of falling behind on your monthly mortgage payments;
* you have concerns about even being able to qualify for the loan in the first place;
* your credit is less-than-ideal;

If any of those factors apply to you, then an FHA mortgage might be just thing for you to apply for. This is because FHA mortgages are insured, offering several protections and benefits otherwise unavailable to you through most other loan packages.

The benefits of an FHA mortgage include the following:

* Lower Rates: Since it”s the Federal Government insuring FHA loans for the lenders, FHA mortgages typically offer interest rates considerably lower than the norm. For this reason alone, it is always worth comparing all other loans available at any given point in time against FHA-insured loans.

* Less of a Down Payment: FHA mortgages can be obtained with only 3% down and, unlike most other mortgages, permit the down payment come in the form of a gift from employers, family members, or charitable organizations.

* Easier to Qualify: As FHA mortgages are insured, lenders are generally far more willing to offer loan terms and qualifications that are easier to meet.

* Lower Credence Given to Credit: FHA loans are ideal for people with poor or less-than-perfect credit, as even people who”ve suffered credit and employment challenges (including bankruptcy) can still qualify for one.

* More Protection: The FHA was formed in 1934 to help people buy and keep their homes, and they”re not about to watch the homeowners they help then lose those homes to foreclosure. Rather, the FHA offers numerous options to FHA mortgagees in a bind, a boon most conventional loans don”t come close to.

About The Author

Somerset Mortgage Lenders has been in business since 1979. Whether you are looking to refinance your mortgage, consolidate your debt, improve your home, we can help. Call us toll-free at 1-800-675-9783 or visit us at http://www.somersetmortgagelenders.com/

By Daniel Riley

Reverse mortgages were created in order to help ease the financial burden on aging seniors. A reverse mortgage is a type of financial instrument that permits home owners over the age of 62 to gain access to the money they have accumulated as home equity.

How a reverse mortgage works is that the lender makes payments to the borrower, rather than the other way around. The amount paid out is based on a percent of the equity remaining in the home (that”s the full property value minus the amount still owed).

Seniors can use money to fund:
* retirement;
* medical costs;
* a new car;
* home repairs;
* renovations;
* estate planning;
* a grandchild”s education;
* travel and leisure;

In order to get a reverse mortgage your current mortgage does not need to be completely paid off. The amount you can receive is based on the equity in your home. As a mandatory part of the process, however, your existing mortgages will be paid off. Some people simply use a reverse mortgage to get out of having to pay monthly mortgage payments, the money they receive just being a bonus.

When you receive a reverse mortgage, your home remains in your name, and your retain total control of the property. It is also still your responsibility to maintain the house and property and pay all taxes and insurance as usual. No lender can take your home away from you so long as you keep that home as your primary residence.

If, however, all owners of the home (all names on the title and mortgage), leave their home permanently for any reason (including illness) the loan is then due and payable. This does not apply to extended hospital stays or vacations. Any absence lasting longer than 1 year simply needs to discuss the situation with their lender.

With a reverse mortgage there are several ways you can receive your money:
* one lump sum;
* regular monthly payments;
* a line of credit;
* any combination of the above.

Reverse mortgages do not affect your Social Security, nor do they affect your Medicare. SSI, however, may be affected depending on the terms of the specific loan program in question.

To qualify for there are no:
* credit requirements;
* income requirements;
* loan repayment requirement provided you remain in the home as your primary residence.

There can, however, be significant expenses associated with getting a reverse mortgage, though the majority of these costs can be financed into the reverse mortgage.

With a reverse mortgage, after your death, your estate will not be responsible for owing anything remaining on the mortgage balance. Some programs even allow you to set aside a portion of the value in your home to be protected and passed along with your estate when you pass. As a holder of a reverse mortgage, you are permitted to sell your home, the proceeds simply going to pay off the reverse mortgage before any funds find their way into your pocket.

About The Author

Somerset Mortgage Lenders has been in business since 1979. Whether you are looking to refinance your mortgage, consolidate your debt, improve your home, we can help. Call us toll-free at 1-800-675-9783 or visit us at http://www.somersetmortgagelenders.com/