The company I have been working with on  Lease-To-Own homes, Liberty First Services (now First Commercial Consultants), has gone through a major reorganization and changed their guidelines for buyers and investors.  Before you pursue this avenue, please contact me for the most up-to-date information.


Information is FREE.  Knowledge, Experience & Integrity Are Priceless!
Contact the TOP Team today:
Carol Williams, Realtor, Team Leader  TopTeamCarol@gmail.com
Shelley Granger, Realtor / Assistant  TopTeamShelley@gmail.com 

FREE search for homes and land in the Wenatchee Valley.

According to an article at Bankrate.com , the Feds did not raise short term interest rates.  This move is intended to encourage continued consumer use of credit cards and home equity lines of credit. 

For current information on the Wenatchee housing market, contact:
Carol@TopPropertiesWenatchee.com


Or visit her (information laden) website at:

www.TopPropertiesWenatchee.com

I've been watching the "Flip That House" program on TV lately and find it interesting.  I am, however, quite bothered by the way they calculate "profit".  They have a very simple (and misleading) formula for calculating profit.  They take the difference between the final sales price and the original purchase price (plus the cost of renovation):  
   (Selling Price) - (Original Purchase Price + cost of renovation) = Profit.    WRONG!

What they have not plugged into the formula were the loan origin fees (to finance the purchase price) OR the selling costs involved to sell the house at the end.  Loan origination fees generally run from 1.5% - 3% (and up).   Selling costs will run about 8.5%, depending on the county and state.  When working with a real estate agent to sell the property, the fees are negotiable so there is some flexibility... but I'm trying to show you a realistic picture of buying and selling costs.  And, be sure if you're getting a loan on a property you intend to "flip" (selling quickly), be sure you do NOT get a loan that has a pre-payment penalty.  These penalties can be substantial.


Anyway, let me show you a couple of scenarios from yesterday's programs:

Home #1
Purchase Price   $152,000
Cost of renovation  58,000

Total cost of acquisition:  $210,000
Sales Price $315,000
Reported profit:  $105,000   WRONG!

Reality:
Purchase Price  $152,000
Cost of renovation  58,000
Finance fees @ 1.5% on 80% LTV   $1,824
Total cost of acquisition   $211,824


Sales Price  $315,000

Less 8.5% selling costs: $26,775
Net Sales Value:  $288,225 (less original cost of $211,824)
Actual profit:  $76,401



* * * * *


Home #2:  This one is very alarming when you look at the bottom line!
Purchase Price   $1,050,000
Cost of renovation  85,000

Total cost of acquisition:  $1,135,000
Sales Price $1,249,000
Reported profit:  $114,000   WRONG!

Reality:
Purchase Price  $1,050,000
Cost of renovation  85,000
Finance fees @ 1.5% on 80% LTV   $15,750
Total cost of acquisition   $1,150,750


Sales Price  $1,249,000

Less 8.5% selling costs: $106,165
Net Sales Value:  $1,142,835  (less original cost of $1,150,750)
Actual profit:  <$7915>   NET LOSS



* * * * *

Do you see the point I'm trying to make here.  When you are calculating profit, please be sure to include ALL costs of acquisition and ALL costs of selling.    It's critical to the actual bottom line.





For answers to your real estate questions, please contact:
Carol@TopPropertiesWenatchee.com
www.TopPropertiesWenatchee.com

Here is an excerpt from the Bankrate website about what's happening with home mortgage interest rates:
"Rate: 6.49 percent (30-year fixed) Average points: 0.36
Mortgage rates rose a tiny amount after falling five weeks in a row. Rates didn't move much because there has been little economic news of note in the past two weeks. That is set to change later in the week, with the second-quarter GDP report coming Wednesday and the August employment report arriving Friday. The bond markets will scrutinize the employment report for signs that the economy is weakening or that it is unexpectedly strong. The average 30-year fixed rate rose to 6.49 percent from 6.48 percent. The average 15-year fixed, which is a popular option for refinancing, rose 1 basis point, to 6.2 percent. A basis point is one-hundredth of a percentage point. On bigger loans, the average jumbo 30-year fell to 6.73 percent from 6.74 percent. Adjustable-rate mortgages fell. The popular 5/1 ARM dropped 2 basis points to 6.22, while the one-year ARM slipped 2 basis points to 5.98 percent".

* * * *

I like Bankrate as a source of current information on mortgage rates, but they also have articles on just about anything involving money.  Bankrate.com is only one source of information and it's good to shop, but this is definitely a site worth bookmarking and checking in on occasionally.  From a customer service point of view, I almost always prefer to have my clients work with a local Wenatchee area lender (versus internet lender).  In my experience, the rates are competitive... and transactions generally close faster and smoother.


For answers to your real estate questions contact:

Carol@TopPropertiesWenatchee.com



Search for homes and land for sale in East Wenatchee, Wenatchee, Cashmere, Rock Island, Malaga, Entiat, Waterville, and Leavenworth.

Stay current with real estate news, info, and trends in the Wenatchee area

This seminar is presented in cooperation with Liberty First Services Inc., Puget Sound 1031 services & Investment Dream Services LLC and is open to the public, there will be NO solicitations, registrations, or sales offers associated herewith.

Please join us for details on this new way to invest in real estate! 



Carol@TopPropertiesWenatchee.com   

"Falling" may not be the proper term to describe what's currently happening with mortgage rates because I think of "falling" as a drastic drop.  Rates have come down for several weeks, though.  Here's a link to additional information and some details on what's happening with mortgage rates.


Rates are still good and it's a good time to buy, before values go up any more.  Remember, our local home appreciation rate in the Wenatchee area is forecast at 16% for the next 12 months.   If this holds true, that means a $200,000 home on today's market will cost $232,000 next year at this time. 




For answers to your real estate questions in North Central Washington contact:

Carol@TopPropertiesWenatchee.com 


Search homes and land for sale in Wenatchee and the surrounding area

For those people who really want to buy a home but are not in a position to get financing because of low credit scores, I have good news!  There is a program available that may allow you to get into a lease/purchase, with up to 2 years to raise your credit scores in order to get financing.    The greatest advantage to this program is that the selection of homes is very large.  We've always had a severe shortage of lease/purchase homes in the Wenatchee area.  Now the inventory has opened up dramatically... and we offer the advisory staff to walk you through the process of improving your credit scores, so you can finance the home as soon as possible. 

If you'd like additional information on the lease/purchase program, please contact me:

Carol@TopPropertiesWenatchee.com
Search homes and land in the MLS (local, statewide, nationwide)
Current Wenatchee real estate news, info & trends (through pictures & commentary)

	Here are today's rates, as quoted at Bankrate.com   LOAN TYPE		TODAY	+/-	LAST WEEK
	30 yr fixed mtg		5.81%		5.86%
	15 yr fixed mtg		5.46%		5.48%
	5/1 ARM		5.50%		5.49%
	30 yr fixed jumbo mtg		6.08%		6.12%
	5/1 jumbo ARM		5.63%		5.62

Rates are bobbing up and down at bit, but it is expected rates will
rise overall during this calendar year, and I anticipate by the end
of the year we will see a rate of about 6.25% for a fixed 30 year loan.
This is still an excellent rate and should not affect real estate sales
activity overall. 

As I mentioned in one of my previous articles, I recommend utilizing
the internet as a source of information, but suggest interviewing several
local lenders to actually work with on a specific transaction.   If you'd
like some pointers on how to negotiate with (and choose) a lender, please
contact me:

Carol@TopPropertiesWenatchee.com
http://TopPropertiesWenatchee.com

Not surprisingly, mortgage rates are inching up.  For daily updates on current interest rates, visit my Mortgage 101 site or Bankrate.com .  

Whether you're considering buying real estate in the Wenatchee area or some other part of the country, keeping up with the trend of current rates is useful.   When shopping for rates, the internet can be very useful but I, personally, recommend working with a banker or mortgage company in your local market.  You can use the information you gleen from the internet in negotiating with any lender, but I've found local mortgage professionals give more personalized service and are easier to communicate with than an unknown entity from some website.    Just as importantly, I have also found that loans are processed much more efficiently when utilizing local lenders who are familiar with the local market. 

Please contact me if I can provide additional information.

Carol@TopPropertiesWenatchee.com
http://TopPropertiesWenatchee.com

 

Bankrate.com has an interesting article, with a link to compare closing costs in your state to those in any other states.  "Closing costs" include a long list  of various charges for securing a mortgage, or when refinancing a home.  The total of closing costs can really drive up the cost of buying a home, so it's worth paying close attention.  I recommend you check out the article and use it to your advantage when you are shopping for a mortgage.    Here is a direct link to a sample closing cost list in Washington state.  

When shopping for a mortgage, whether it's in Wenatchee, Washington or any other city in the country... the closing costs are a significant factor in determining the actual cost of your mortgage. 

On my other blog, I made a post about another  new concept in home loans.... at least I had never heard of it before.  It's called "Shared Appreciation Loans".    Go ahead and check it out.     If you don't want to partner with a lender, perhaps  a family member would consider it. 

Click on image to enlargeThere's a new mortgage brokerage office in town.  This, in itself, is not news because we've certainly seen a proliferation of mortgage brokers pop up over the last few years.   It's actually kind of scary. 

When asked, I gladly make recommendations of professionals with whom I have utmost confidence in providing excellent service.  Up to now, I have not gotten into publicly endorsing businesses on my blog, but today I will make an exception.    

Perry Mace, who has worked Wenatchee real estate loans for many years, has recently opened his own office, Perry Mace & Associates,  with 3  co-workers from his previous location.    I have had the pleasure of working  with Perry several times in the past with various clients.  He is definitely one of my favorites.  Regardless of the dollar value  of the loan, or the credit worthiness of the applicant, Perry is always extremely personable, patient and professional.   

I like supporting Perry's business in general, but I especially like working with Perry when I have potential home buyers with credit issues.  Perry is very knowledgeable about how to help these people and always honest about what they need to do to get in a position to buy and get the best loan available.    Perry will work with a client for months and months if necessary.  He is not in the business just for the quick sale.  He is truly a "build a relationship" kind of guy. 

I was in Perry's new office at 1209 N. Wenatchee Avenue yesterday and it's going to be state-of-the-art.  Perry and his 3 associates are going to do a great job and be very successful.     I don't think their website is up and running yet, but I'm sure it will be soon.  When it is, you can check them out at:  www.LoansByPerry.com  His e-mail address is: Perry@LoansByPerry.com 

If you are thinking of buying or refinancing a home, please give Perry a call at:  509-662-3355.  Be sure to tell him Carol Williams sent you. 

On my main Wenatchee real estate website there is a link to a short, yet interesting, article about the top 10 reasons mortgages are declined.   Surprisingly, the number 1 reason was "no credit file", meaning the applicant has not established enough credit because they pay cash for everything.   The article also cautions about co-signing loans for another person.  To read the full article, click here. 

Have a great day!
Carol

I received the July issue of the Reader's Digest  today.  We subscribe to the large print edition and love it!  I'm only 53 years old, and have pretty good eye sight (with mild reading glasses)  but I do love this large print edition.  It's so easy to read.  

Anyway, there was an interesting article called "9 Money Rules of Thumb".   I was particularly interested in the very first entry that says NOT to close credit accounts you no longer use. 

Their advice is to cut up the credit cards, but keep the accounts open.  The explanation for this is that part of your FICO score is determined by how much of your available credit is actually being used.  The smaller the ratio, the better.  In other words, if you have total credit available of $20,000 but are only using $3,000... you are using 15% of your available credit.  If you closed several  accounts reducing your available credit to  $10,000, your $3,000 of credit debt now totals 30% of your available credit.  Lenders look at this ratio to see if you are close to being over-extended. 

I thought this was a good point to make. 

Tomorrow I intend to post some statistical information about what has been happening in our local Wenatchee real estate market. But, for today I'd like to discuss some posts and comments I've been reading on another blog. JLP at the www.AllThingsFinancial.blogspot.com blog has a couple of recent posts on interest only loans. These loans, I believe, have had a significant role in

Click to read more ...

I was in Target today shopping for a bunch of little stuff, which added up to about $70. When I was checking out, the cashier asked me if I'd like to save 10% today. I said "Of course, but not if it has anything to do with

Click to read more ...