Archive for the 'News Flash' Category

New FHA Mortgage Increase

Caroline Ashe Your Source in Augusta, GA Real Estate March 28th, 2013

If you are a lender, a realtor or a buyer you have heard about the new FHA Loan increases for the loan’s PMI or private mortgage insurance. These new FHA loan increases begin April 1, 2013 so get ready, prepared and know the facts. Below I have added a few slides from a presentation I attended at Augusta Mortgage. Good stuff!

In straight talk the PMI on an FHA mortgage will be increased by 10 basis points on the annual premium term. What does that mean? I don’t really know because I leave that to the loan officers, but on a $100,000 sales price with a loan amount of $96,500 ($100,000 minus 3.5% down payment) the increase in payment is $7.97 per month which equals 2 less stops at Starbucks a month! Small price to pay for the American Dream.

I’ve been asked the questions WHY? is this happening… In order for the FHA mortgage to be available there must be so much capital in reserve, per the government policy. Well the FHA is in the negative and needs to raise money to keep the most affordable home loan on the market available to eager buyers looking to purchase a home! FHA mortgage requires the smallest down payment (3.5%) and is not as strict on credit scores. FHA loans are good for buyers, sellers and the general economy, as we’ve all seen how important the housing market plays in the overall health of our economy.

New FHA Mortgage Increase

New FHA Mortgage Increase

  

New FHA Mortgage Increase

The other BIG change is the length of time the annual mortgage insurance premium is collected on FHA mortgages. In the past after your FHA loan reached a loan to value of 78% or less the mortgage insurance would drop off and your monthly payment would decrease. Well…say bye bye to that with this new change that takes effect June 3, 2013.  For most FHA buyers, in my opinion, this will not have that much effect seeing as most buyers move every 5-10 years on average. The time for the loan-to-value to reach 78% or less is approx. 5 years. The change to remember is if you only have a down payment of 10% or less the mortgage insurance will be on the FHA loan for the life of the loan term. See the illustration below for explanation of 15 and 30 year mortgage terms.

New FHA Mortgage Increase

New FHA Mortgage Increase

 

Questions, comments, complaints? Connect with Caroline Ashe online at www.CarolineAshe.com or call 706-589-1360

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From Realtor.org – Top Ten Things You Need to Know About the 3.8% Tax in the Health Care Legislation

Caroline Ashe Your Source in Augusta, GA Real Estate August 29th, 2012

Top Ten Things You Need to Know About the 3.8% Real Estate Tax in the Health Care Legislation

The questions on this new tax are plenty and I’ve received alot of emails and calls about the tax that’s weaved into the Health Care Legislation that will go into effect in 2013. This informative piece from the www.Realtor.org seem to answer all the hot topics. Stay informed…read on!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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6 Tips to Buying Bank Owned or REO Homes

Caroline Ashe Your Source in Augusta, GA Real Estate April 20th, 2012

The buzz words these days in real estate might be bank owned one day or foreclosure homes the next….OR if you are real savvy REO a.k.a Real Estate Owned and refers to property that a lender or investor acquires due to a repossession through foreclosure. Foreclosureis the actual process in which the property is acquired.

Search Augusta GA Area Bank Owned Homes HERE!

 

Helpful tips to buying bank owned property:

  1. Get pre-qualified, IT’S FREE and will save you hassle in getting your offer considered.
  2. If you are a cash buyer have proof of funds ready and available.
  3. Use a Realtor to represent you, like me Caroline Ashe.
  4. Work with your Realtor to locate bank owned homes in your area.
  5. Keep in mind lenders/investor price the home at market value taking into account condition, so many REO homes are priced well already for the current market.
  6. Be ready to make an offer when you see a home you like. There will most likely be multiple offers.

My personal tip – Be patient. There is more paperwork and you must do your due diligence because most bank owned homes are purchased AS-IS, but the benefits to getting a home at a ‘deal’ is worth it!

Search Augusta GA Area Bank Owned Homes HERE!

 

If you’d like to discuss the process further, plese let me know!

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Remembering Pearl Harbor

Caroline Ashe Your Source in Augusta, GA Real Estate December 7th, 2011

                                           

Today we commemorate the 70th anniversary of the massive air attack on the U. S. base at Pearl Harbor, Hawaii.  On this day in 1941, 2,500 American lives were lost, 1,000 were wounded, and 18 American ships and nearly 300 airplanes were destroyed…in less than two hours.   Twenty-three sets of brothers died aboard the USS Arizona.  Today we remember and honor all of those who lost their lives.

70 years after its demise, the USS Arizona continues to spill up to 9 quarts of oil into the harbor each day.

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HARP 2.0 Update: Big News the 4 Largest Lenders Support the Plan

Caroline Ashe Your Source in Augusta, GA Real Estate November 4th, 2011

HARP or  the Home Affordable Refinance Program announced last month it’s gaining support from the nations largest lenders Bank of America, Chase, Citigroup and Wells Fargo.

This is big news as the participation in the HARP program is voluntary. Fannie Mae and Freddie Mac  will roll out the complete guidelines by November 15th for the banks to review and start their implementation process. Due to each of the lenders processes being different and needing to get the program’s operational items and information to the local mortgage lenders the ultimate timing  for each lender is unknown. But in a statement Bank of America said they hope to be taking application for the HARP program by December 1st.

This is an update to my recent blog post - Recently Announced Home Affordable Refinancing Program – my 2 cents!

The questions are many and it’s important to help educate yourself and homeowners that this will help so be sure to spread the word and share this post with your friends, family and co workers. I will be happy to answer any questions that come up.

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Sharing the road – Motorist and Bicyclist Safety Tips

Caroline Ashe Your Source in Augusta, GA Real Estate October 21st, 2011

The local story of Matt Burke, a bicyclist who was injured and later died from being struck by the driver of an SUV who was not paying attention, struck a cord with me. A sad cord and something that was preventable. I’ve read Matt Burke was a local physician, a war veteran, a father, a husband and an avid bicyclist seemingly enjoying his usual ride in Beech Island, SC.

A bicycling accident can happen in a flash and drivers and bicyclist need to be alert when on the road together. Be educated about sharing the road. Below are a few tips and reminders from the League of American Bicyclist:

Sharing the Road: Bicyclist:

  • Obey traffic signs and signals
  • Wear a helmet no mater how short the trip
  • Always ride in the same directions as the traffic
  • Do not swerve in the road or between parked cars
  • Wear bright clothing and use reflectors

Sharing the Road: Motorist

  • Reduce speed
  • Do not honk your horn when approaching bicyclist
  • When passing leave at least 4 feet between you and the bicyclist
  • With children on bicycles, expect the unexpected and slow down

 

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