Archive for March, 2008

Charlotte’s Real Estate Market Shines!

Today, Bloomberg reports that the S&P/Case-Shiller home-price index dropped 10.7 percent from January 2007. In 20 major US metropolitan markets, property values dropped overall. The drops were dramatic and many economists are predicting tough times ahead.

Yeah yeah, we have heard all of this time and time again!
“The sky is falling, the sky is falling!”

And yet again, Charlotte NC real estate remains one of the bright spots in the nation! This report went on to say (very briefly I might add) that Charlotte home prices defied the averages yet again! Read this excerpt:

All but one of the 20 cities in the index showed year-over- year declines in prices in January, led by drops of 19.3 percent in Las Vegas and Miami. Prices rose in Charlotte.  (view report)

This is further proof that Real Estate is local. While other areas in the country that saw “crazy - stupid” property value increases are resetting themselves to reality, Charlotte’s real estate market, which has remained steady, is continuing to grow. Remember when your economic’s professor said “slow and steady wins the race”??? Well, here is your proof!

Charlotte NC has the best real estate market in the Country! Those of us that live here already know this is the place to live. The rest of the nation is seeing this too! If you are thinking of moving, you should seriously consider moving and buying a home in Charlotte NC!

New feature: Bond Market Watch

I am excited to announce that I have installed a new feature to EdNailor.com. The Bond Market Watch is up and running. This page will give you real time updates of the US bond market and provides a basic look into how bonds can typically predict how mortgage rates will change. Please note that during this current credit crunch, bonds can help indicate what may happen, but mortgage rates have been moving in opposite directions on more than one occassion.

Visit the Bond Market Watch.

Question:

I am in sales and things are tight. I have been in my home now for 3 years and have a good mortgage right now. However, due to the lower income this year, the monthly payment is getting tougher to deal with. I have never been late on my mortgage and my credit is still good. But I am concerned that I may start to get behind. What should I do?

Answer:

I am assuming your have already looked into a secondary income. So first off, stay in touch with your lender. If you have never been late, don’t wait until you get behind to call them. Let them know what is going on and ask what options they may have. It could be possible that they might offer a simple refinance or modification to your mortgage that would allow lower payments.

If your current lender does not offer any options, give a local lender a call. In Charlotte, feel free to call my office if you like. Either way, you will want to look into options now while you are still ahead. Even if your income has fallen off, you may still be in favorable position to get into a mortgage that fits your current needs. With our free mortgage consultation, we can help determine what products are available for you and if it makes sense to make a change.

There is also the option of possibly selling your home and downsizing a bit. This is becoming a popular option for many people. If you decide to do this, be sure to get a great Realtor to help. We can provide you with great referrals if you need it. But statistics still prove that listing with a professional Realtor can not only help you sell quicker, but also get more money!

Ask the Lender your Question

Answers to your Mortgage Questions

So Dear Reader,

What is it you would like to know?

I could write a hundred different articles and posts on this website, but in all honesty if it is not helping you, it is all a waste. While I know the information here has benefited many Charlotte home buyers, I am curious as to what is on your mind.

So to make it easier, I have installed the “Ask the Lender” page, specifically set up to handle your questions. Feel free to use this page and email your questions. I will do my best to provide your answers as quickly and efficiently as possible. In addition to having your questions answered, you may inspire other articles that will help your fellow Charlotte area home buyers.

No topics are off limits. If there is a question you need answered, ask.

Ask the Lender

Existing Home Sales Rise in Feb

According to a report in the Associated Press, the number of sales of existing homes has risen for the first time in 6 months! This news was a surprise to economists, who all expected a further decrease in sales of homes due to a “soft” market and tightened credit.

This is great news! This means that home buyers are seeing a great opportunity to save like never before. Charlotte is in a buyer’s market and still available are the best mortgage rates Charlotte has seen in a long time!

If you have been on the fence about buying a home in Charlotte, now is the time to act. Get started now before the market makes a full recovery and you can still save!

FHA Loans in Charlotte - Loans to $303,750

One common misconception about FHA mortgage loans is that they are mortgage loans for the “poor man.” That is far from the truth. Even before the new economic stimulus package, the FHA mortgage limit in Charlotte was $230,470. Now with the stimulus package, the FHA mortgage limit for a single family home in the Charlotte area (including the cities of Concord, Monroe, Matthews, Gastonia, and Huntersville) are $303,750.

However most home buyers over the $150,000 mark don’t seem to give the FHA mortgage a real thought. Maybe its because of the image that has been associated with using Federal funds. Maybe its the fact that over the past several years there was a big push to avoid mortgage insurance (which FHA mortgages have), but now that mortgage insurance is tax deductible, that is a moot point. Whatever the reason, one should seriously consider the advantages of an FHA mortgage loan when buying in the Charlotte area.

The low monthly mortgage insurance, the low downpayment requirement (only 3%), the easier qualifications and easier documentation all make compelling reasons to consider the FHA mortgage. That being said, FHA mortgage loans are not for everyone. I will address those considerations in another post.

But for now, one should understand that the FHA mortgage loan is not just a “poor man’s loan.” There are great advantages to use the FHA mortgage program in Charlotte. And with our expertise, we can help you determine if a Charlotte FHA mortgage loan is right for you.

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A Step Forward 

Dear friends, clients and partners;

It is with great excitement and anticipation that I am pleased to announce that the Carolina Mortgage Connection has joined Residential Mortgage Center in Charlotte, NC.

Residential Mortgage Center is a licensed Mortgage Lender serving both North and South Carolina and is located at 205 Regency Executive Park Suite 200 Charlotte, NC 28217.

With this move to Residential Mortgage Center, we will continue to offer the best mortgage rates and service in the Charlotte area! In addition to that, there will be on site loan processors to get your mortgage loans closed faster than ever!

Greater Flexibilty

Working with a mortgage lender will give us greater flexibility in the marketplace. In today’s volatile mortgage market, flexibility will be a key difference in getting results! With the ability to adapt mortgage programs to fit the individual needs of our borrowers, the Carolina Mortgage Connection can custom tailor the right program just for you! And because you are working directly with the lender, mortgage rates will be more competitive than ever!

Focused on You 

Change can be a scary thing. But in this case it is very exciting! This business maneuver will allow us to focus on providing our clients and partners with unparalleled service while allowing us to pursue our mission of educating, inspiring and assisting in the American Dream!

As always, you can always contact us by calling 877-411-9327 or via the website at www.EdNailor.com

Sincerely,

Ed Nailor

Top Advisors May be Sellouts

Have you seen the latest Hyundai car commerical? They are advertising their latest sale, which offers $3000 cash back when you buy a Sonota. After the salesperson tells the potential buyer about the cash back, out pops this financial expert (some supposedly well known financial author). This author, the “expert”, suggests to the potential buyer that they should buy this car to get the cash and “invest” the cash back in a CD (certificate of deposit.)

I can not blame Hyundai at all. The ad spot is brilliant. It really sells this as a “great investment.” However, this “expert” is selling out. How? As someone that works in finance, let me share with you what I see in this…

Most automobile loans will run between 6-10% in interest rate. With the current credit crunch, most buyers could be seeing slightly higher than this. You must note that this ad did not mention 0% financing, or anything even close. So one must assume it is the average rate.

If you put the $3000 cash back into a CD, you will at best gain a 2-3% return on the investment. So this expert is instructing the car buyer that putting the $3000 in to a CD is better than using it towards the price of the car, with will carry a higher rate than the CD will pay. The idea is to make this sound like a smart “investment”, which in turn makes you feel smart for buying their car.

So the financial expert that should warn you about such bad investments is instead pushing a bad idea so he can get paid. This just backs my overall opinion of many of the “experts” out there. Most of these talking heads are more interested in selling their books than offering you real advice.

So who do you trust? Here’s a hint… only listen to advice given by those that have taken the time to listen to you first.

Moving to Concord NC?

It seems more and more people are doing just that! Concord NC and Cabarras county are growing! As a matter of fact, Cabarras county NC is ranked as the 29th “fastest growing counties” in the country!

This is no surprise to anyone that lives in the Concord / Charlotte area. Concord NC has so much to offer. Concord is very well known for NASCAR racing, with many NASCAR teams making the Concord area home. Shopping at Concord Mills is a treat in itself, as many shoppers plan day trips to the very unique outlet mall. There are also many area lakes to enjoy. An easy life awaits anyone looking to move or buy a home in Concord NC.

Concord’s real estate market is hot. Being so close to Charlotte but having lower property taxes makes Concord NC a great draw to new residents. And with the increased limits to Concord FHA mortgage loans, a home buyer can buy a home in Concord and get great FHA mortgage loans up to $303,750. This allows a very large selection of beautiful homes to qualify for Concord FHA mortgages.

If you are thinking of moving to the area, seriously consider Concord NC. Great shopping and entertainment, combined with great mortgage programs in Concord are making this area grow fast! No wonder the Concord NC area is the 29th fastest growing area in the country!

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Charlotte Jumbo Mortgage Status Avoidance

With the release of the economic stimulus package, we all hoped for an increase in Charlotte’s Jumbo mortgage limits. However, since Charlotte’s luxury real estate market is holding well, we did not see any changes in Charlotte’s jumbo mortgage market. Currently a jumbo mortgage loan in the Charlotte area that is a mortgage loan amount over $417,000. Sometimes this is also referred to as the luxury mortgage loan.

The biggest question I hear is “Can we avoid the jumbo mortgage status in Charlotte?” Well, the answer to that is… “That depends!”

In the past, one way to avoid Charlotte’s Jumbo loan classification was to split the mortgage between a first and a second. Today however, many lenders are doing away with or cutting back on second mortgage loans, especially on a purchase. They want more of the security PMI can offer them. Yet there are still a few lenders that offer the 2nd mortgage and this can prevent your mortgage in Charlotte from being considered a luxury jumbo loan.

If you can not get a second mortgage at the time you purchase your home, you may consider putting just enough money down at closing to keep you under the Charlotte jumbo mortgage loan limits. After closing, you can look into options that would allow for a home equity line and draw the money back out that way. You would have to float the downpayment money for a short time, but with prime rate being so low, this could be a great alternative.

These are just a couple ideas of how luxury loan status in Charlotte can be avoided. With a free mortgage needs consultation, we can help determine if you have an opportunity to avoid the jumbo mortgage status in Charlotte. We will provide you with advice and guideance tailored to your own unique needs.

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