Intown Atlanta Real Estate News
FHA Delays Mortgage Insurance Changes And Other FHA Facts You To Know
Friday, August 27, 2010
Two weeks ago, FHA Commissioner David H. Stevens announced plans for implementing FHA’s new mortgage insurance premium structure. “As we work to publish a Mortgagee Letter, it is our intention to announce that based on industry feedback and our desire to have this change implemented successfully in the marketplace, FHA will make the premium fee changes on all new case numbers effective October 4th.”
What is he talking about? As previously announced, FHA will lower its upfront premium simultaneously with a planned increase in the annual mortgage insurance premium. FHA’s upfront MI premium will be adjusted down to 1% on all amortized loans (it was 2.25%) and the annual MI premium will increase to just under .9% on loans amortized more than 15 years.
When considering financing in today’s market, FHA loans have become more and more popular as they are not just for first-time homebuyers any more. In fact, the maximum FHA loan in metro-Atlanta is currently $346,250.
Two great features of FHA loans that are often overlooked are the following:
1) FHA loans are actually assumable by qualified buyers down the road. That could be a huge benefit to a potential seller with an FHA loan if interest rates rise in the future when they decide to sell their home. The loans are assumable but qualifying, which means that a potential assumer would have to have good credit but would pay limited closing costs in assuming the existing borrower’s loan.
2) FHA loan borrowers can refinance in the future under streamline conditions (no appraisal option is currently offered and limited documentation of employment and assets) if interest rates fall. It is FHA’s belief that a lower rate will only benefit the customer and would not pose an undue risk to the lender.
Finally, for existing FHA customers who are not sure if they have enough equity in their home to refinance, a new FHA streamline refinancing method allows a rate reduction to either a fixed rate or a 5/1 adjustable rate mortgage with no appraisal as long as certain conditions are met!
The 5/1 ARM is extremely attractive right now as closing costs can be included in a 4.0% rate on most loan amounts. That is about three quarters of a percent lower than refinancing on a traditional 30 year fixed with no closing costs and may be tailored more closely to the borrower’s desire to purchase another home in the near future when home values rebound.
The conditions required are that the homeowner must have an existing FHA loan, must come to closing with their prepaid items and current month’s payment, must realize a tangible benefit, and cannot have more than one 30 day late payment over the past 12 months.
Posted in: Intown Atlanta Real Estate News
Bees, Wasps, Mosquitoes, and Ants Are Out In FULL FORCE This Summer
Thursday, July 29, 2010
It’s the time of the year when children are outside playing games and the grill is always sizzling with delicious summer fare. While it is nice to be outside enjoying the warm weather, it’s not fun getting stung by one of summer’s most infamous pests: fire ants, wasps, mosquitoes and yellowjackets. These potentially harmful pests can rapidly invade an outdoor living space, quickly putting an end to your summer fun.
“Stinging insects send more than half a million people to the emergency room every year,” said Arrow Pest Control Expert Shay Runion. “Fire ants, in particular, can prove to be extremely dangerous to young children. What might appear to be a tall mound of dirt in the yard or sandbox is actually a fire ant mound. Simply touching the nest with a stick, can aggravate it, potentially leading to multiple, painful stings.”
Here is some information about these pests and the necessary steps to prevent them from overtaking your outdoor living space:
* Red Imported Fire Ants: Fire ants get their name from the painful sting they leave behind on their victims. Known for the large nests they built in tall mounds, fire ants can usually be found in landscaped areas or near the foundation of a home. To prevent fire ants from entering the home, seal all cracks in and around the home.
* Mosquitoes: Mosquitoes are summer’s most “notorious” pests, known for the painful, itchy welts they can leave behind after attacking their victims. Mosquitoes are willing to go the distance to get what they want, often traveling up to 14 miles to feed. Mosquitoes can also mature from eggs to adults very quickly, usually in 10 -to- 14 days. They lay their eggs in stagnant water. Mosquitoes are most active during dusk and dawn hours. Where possible, remove all sources of standing water from your property and don’t forget about unused swimming pools!
* Wasps: Wasps are the most aggressive of the summer insects. They are unique in that they do not need to be provoked to show their aggression, often attacking humans for no apparent reason. One wasp can sting its victim multiple times, leaving behind localized pain and swelling and can cause more serious allergic reactions in some cases. Wasp nests are found near roofs and in plants. If a wasp nest is found on a property, a pest professional should be contacted immediately.
* Yellowjackets: Yellowjackets typically create their nests in the ground, attics or basements. If their nest is disturbed, yellowjackets will attack and potentially sting their victim multiple times. Yellowjackets feed on protein and sweets, so it is important to keep all food covered, in a sealed container when having an outdoor barbeque. It is also important to make sure all trash cans have a secure lid.
- Information gathered from Arrow Exterminating
Posted in: Intown Atlanta Real Estate News
A 3.8 Percent “Sales Tax” on Your Home?
Friday, July 23, 2010
Q: Does the new health care law impose a 3.8 percent tax on profits from selling your home?
A: Yes and No. The first $250,000 in profit from the sale of a personal residence won’y be taxed, or the first $500,000 in the case of a married couple. But investment property will be hit and those who have higher incomes will pay when selling their personal residences.
Starting in 2013, the 3.8% Medicare surtax would hit average, middle-class investors in real estate. A middle-class taxpayer who happens to sell real estate for a gain in a particular year would be liable for this new tax, regardless of how low his/her income might be in other, more typical years.
The truth is that only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. And even for those who have such high incomes, the tax still won’t apply to the first $250,000 on profits from the sale of a personal residence - or to the first $500,000 in the case of a married couple selling their home. (The Internal Revenue Service says that to qualify for the $250,000 / $500,000 exclusion, a seller must have owned the home and lived there as the seller’s “main home” for at least two years out of the five years prior to the sale.)
Those who would have to pay the tax might include, for example:
A single executive making $210,000 a year who sells his $300,000 ski condo for a $50,000 profit. His tax on the sale of that vacation home would amount to $1,900, in addition to the capital gains tax he would have paid anyway.
An “empty nester” couple with combined income of over $250,000 a year who sell their $1 million primary residence to move to smaller quarters. If they cleared $600,000 on the sale, they would be taxed on $100,000 of the profit (the amount over the $500,000 exclusion). Their health care tax on the sale would amount to $3,800 over and above the usual capital gains levy.
- Scott Askew
Posted in: Intown Atlanta Real Estate News
Energy Savings TIps - Home Star Retrofit Rebate
Thursday, May 27, 2010
Homeowners need to be proactive in making energy-efficient home renovations in order to receive the rebates outlined in President Obama’s new “Home Star Retrofit Rebate” program that was recently introduced in Congress. If passed, the proposed $6 billion program could reduce energy costs for middle-class families by hundreds of dollars a year.
HouseMaster, a home inspection company, provides the following easy projects most every homeowner can do to optimize the energy efficiency of their home:
Windows and Doors
Holes in windows and doors allow conditioned air to leak from your home and allow outdoor air to infiltrate, which can tax your heating and cooling systems and raise your energy bills. Caulk around windows and doors where there are gaps. Also caulk areas where plumbing lines or electrical wiring penetrate exterior walls
Floor and Wall Insulation
Insulation acts as a barrier to heat movement and helps keep any home cooler in the summer and warmer in the winter…all while using less energy. Making sure insulation is used at potential gaps such as around an attic stairway or over the attic access door is important as well.
Shedding a Little Light on a Simple Solution
By replacing traditional incandescent light bulbs with compact fluorescents, you can use up to 75% less energy on lighting alone. A wide assortment of CFLs are now available for almost any type fixture found in a home.
Appliances and HVAC Systems
Your major household appliances are a good place to focus on to make your home more eco-friendly. Start by changing the filters of your HVAC systems regularly and consider upgrading older appliances to take advantage of newer, more efficient designs.
Buy a Programmable Thermostat
This energy-saving step can have a positive and noticeable impact right away. Programmable thermostats are fairly easy to install and once they are set up a homeowner can adjust them as the weather changes. For every degree that a thermostat is set back, you may realize a savings between 1 and 3% on your heating and cooling bills.
- Scott Askew
Posted in: Intown Atlanta Real Estate News
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