Hot Words to Sell Your Home

MSN reports on a Canadian study which has found that the right phrasing in real estate listings can speed a sale (and even boost the final price).

One tip: If you must sell, don't put "must sell" in your ad.

To read the entire article, visit http://realestate.msn.com/selling/Article2.aspx?cp-documentid=2856666

Key Factor That Boosts Home Values

An interesting study has just been concluded by the National Association of Home Builders that identifies how various features in a home impact the property's value. The association's Housing Economics Department created a house price estimator, based on data from the American Housing Survey, a nationally representative survey of about 60,000 housing units conducted by the U.S. Census Bureau in odd-numbered years.

Waterfront locations have the most significant positive effect on home values, the study determined. This applies to homes in every census region and in every type of setting. For example, being on the waterfront raises the value of a standard home in a Midwestern suburb by an average of 43 percent, and in a non-metro areas in the South by 44 percent. In the central city of a large California metro area, being on or near water raises the value of a home by 41 percent.

The characteristic with the largest negative effect on home values is the presence of abandoned buildings within one-half block or about 300 feet of the home. Bothersome trash, industrial buildings, inadequate shopping and bad roads also have a significant negative effects on the price of a home. For more information about the house price estimator, check out the model online at: www.nahb.org/estimator/.

(Source: www.jimwoodard.net)

Are Open Houses Good or Bad?

Mortgage News Daily looks at the pros and cons and concludes that the jury is still out:

For the seller: Many buyers rely on the Internet and open houses in their home search. Many "free-lance buyers" (those who don't use Realtors) are newer Americans who don't quite understand (and are thus afraid of) the process or younger/tech-savvy individuals who really want to do it themselves. If you don't host an open house, these buyers may never see your property.

For real estate professionals: Sunday is prime-time for selling real estate and listing agents prefer to spend that time working with their own buyers. Even so, open houses can be an excellent way for Realtors to connect with potential new customers.

50-year mortgages?

Yes, you read that right. Bankrate.com discusses the loan program and whether it's a viable alternative to interest-only loans.

The bottom line? Although it's tempting to have lower month payments, you won't be building equity. (In fact, depending on fluctuations in the real estate market over the next ***half-century***, you could end up owing more than the house is worth.)

Compass Mortgage offers a number of 15-year and 30-year mortgage loan programs that allow you to buy a house you can afford while also building equity. For details, contact us today at (603)472-2272 or visit www.CharleyFarleyHomeLoans.com

Improve Your Score by Managing Your Credit

Manage your credit for the LONG RUN. In the long run, your scores will be determined by time and good financial behavior which should include the following:

• Pay your bills on time. Late payments and collections can have a serious impact on your credit score.
  
  
• Reduce your credit balance. If you are “maxed” out on your credit cards, your score will be low. Try to keep your credit card balances below 50% of the available limit. EXAMPLE: It’s better to have two credit cards with $10,000 limits where you owe $5000 on each than to have one credit card with a $10,000 limit that is maxed out.
  
  
• Do not apply for credit frequently. A lot of inquiries will give the appearance you may be taking on more debt than you can afford. Each inquiry can cause up to a 5 point drop in your credit score. The actual amount of damage depends on the number of inquiries, time period and other factors in your credit file.)
  
  
• Don’t close any old accounts. Your credit score is largely determined by the length of your credit history. Closing older accounts can make your credit history look younger than it actually is, which can hurt your score.
  
  
• Avoid over-consolidating. If you consolidate your credit card balances onto one low rate card and the balance on that card goes over 50% of the high credit limit, your credit score will go down.
  
  

Building a good credit history over time - by paying bills promptly, establishing a variety of accounts, and keeping balances below 40% of your credit limits - is the best strategy for having and maintaining excellent credit.

Reverse Mortgages and Baby Boomers

CNN reports that baby boomers are creating unprecedented demand for reverse mortgages.

Renowned as being spenders rather than savers, says the news provider, boomers are proving to be only too happy to borrow against all or some of their home to finance their retirement lifestyle.

Reverse mortgages allow boomers to borrow against the equity in their homes, providing additional funds to support themselves in retirement. Debt and interest builds up over time and may be repaid by the beneficiaries of the estate when they sell the home.

Research group Datamonitors says most people take a lump sum of between $40,000 and $50,000 and splurge on a new car or holiday. Others elect to take a few hundred dollars extra each week to support a more comfortable lifestyle.

Home Equity Advantages, Part 2

Cash-out programs allow borrowers to receive up to 80% of the loan-to-value ration for their home. In other words, the lender would pay off the borrower’s existing loan and provide cash up to 80% of the home’s value. (For example, a homeowner who refinances a home valued at $300,000 -- and whose balance on his existing loan is $200,000 -- would be eligible for up to $40,000 cash.) Homeowners can then use that money to help pay for a college education, investments, or purchase a vacation home. All related closing costs, financing costs and prepaid items can be rolled into the new loan amount, further maximizing your borrower's cash flow potential.

If the interest rate offered for your refinanced mortgage is significantly higher than your current rate, cash-out refinancing may not be a sensible choice. In this case, a home equity loan or line of credit (HELOC) might be a better idea. While cash-out refinancing is a replacement of your first mortgage; HELOCs are separate loans on top of your existing first mortgage.

The opportunity to use the equity you have built up in your home is one of the benefits of homeownership. When you need cash for a home improvement project, to pay off high-interest consumer loans, or to finance higher education, you need not look any further than your own front doorstep.

To learn more about home equity loans on your New Hampshire property, call Compass Mortgage at (603)472-2272 or visit www.CharleyFarleyHomeLoans.com.