Michael Dunn — Page 20

Is a 2/1 Buy Down Your Solution to Your Next Mortgage?

June 16, 2011 by Michael Dunn

Make your home ownership experience more comfortable with a 2-1 Buy Down from Legacy Mortgage. The loan is a FIXED 30 year loan with a reduced interest rate for the first 2 years. This program allows you a lower payment those first years leaving more cash each month for the little extras.

How the loan works. The first year rate is 2% points below the market rate, the 2^nd year rate is 1% point below, and years 3 – 30 are at the market rate from when you closed.

This loan starts with a lower interest rate for the first 2 years and is FIXED for the next 27 years.
An example is, year 1 rate would be 3.0%
Year 2 would be 4.0%
Years 3 – 30 would be 5.0%
The cost is 2.5% of your mortgage amount. A $100,000.00 mortgage would cost $2500.00.
Buyer or seller can pay this.
The principle and interest payment on a $100,000 30 year fixed at 5% is $536.82.
The principle and interest payment on the 2-1 Buy down $100,000 loan first year at 3% is $421.60 a difference of $115.22 per month.
The principle and interest payment for the 2^nd year at 4% is $477.42 a difference of $59.40 per month.
The principle and interest payment for years 3-30 is $536.82.

This loan allows you to have a reduced payment during those first few years of homeownership making the transition much more comfortable for buyers.

Call Legacy Mortgage and Rachel Donovan to get all the details on this loan as well as all other mortgage loan options.

Rachel Donovan
Legacy Mortgage
505-328-4792
rdonovan@legacymortgagenm.com
http://legacymortgagenm.com/RDonovan/

New Mexico Real Estate Contracts (Owner Financing)

June 14, 2011 by Michael Dunn

They myth that NM Real Estate contracts are illegal or the devil is just that, a myth. They are definitely not illegal and are used quite often in New Mexico. A New Mexico Real Estate contract is a legally enforceable agreement where the seller agrees to sell and the buyer agrees to buy real property in New Mexico on a deferred payment arrangement. Once the buyer performs all of the obligations per the contract he/she is entitle the the deed. The Real Estate contract does not convey Legal title but does convey equitable title. Simply put it obligates the seller to convey legal title once the buyer has fulfilled the terms outlined in the Real Estate contract.

There are no requirements on how the contract terms should be wrote. Its all up to the buyer and seller. Typically amortized over 15 or even 30 years just as would be outlined in a regular mortgage. I have seen the interest rates pretty close to the going rate for a standard mortgage on up to a few points higher than that of a regular mortgage. So, if the going interest rate for a normal mortgage is 5% you might see an owner financing rate 6-8%. Once again, this is all negotiable and up to the buyer and seller to agree upon.

The obvious reason for doing a NM Real Estate Contract is that the parties don’t want to or can’t obtain a normal mortgage. This could be for numerous different reason:

-Maybe the buyer owns too many properties, makes enough money to support another payment but does not fit the guidelines of obtaining another mortgage thru a lender?? In the investment world this happens a lot with lenders getting tighter and tigher on the criteria

-Maybe the house does not qualify for a mortgage?? Normal mortgages require an appraisal to be completed and depending on the condition of the house it may not be a home that would fit the criteria that the bank is willing to lend on. Tyically seen in home that need renovating. There are no requirements as to the appraised value or condition of the property in owner financing unless the buyer requests it.

-Maybe, just maybe, the buyer is an independent contractor or a small business owner that has a great credit score and has plenty of money for a down payment but still does not meet the quidelines to obtain a mortgage thru a lender??

Point I am trying to make here is that these are not just used because the buyer has terrible credit, no money down and probably wont make the payments. (And yes, I have heard of them referred to that way). These can be used to achieve a common goal….. to buy and sell a home

$5,000 Towards Down Payment & Closing Costs When Buying a Home in Rio Rancho

June 14, 2011 by Michael Dunn

$5,000 towards down payment & closing costs when buying a home in Rio Rancho

Many times lately I have been asked if there are still 1st time home buyer programs still available and the answer is YES. Here is another one that is availabe to 1st time home buyers purchasing a home in Rio Rancho, NM. It is called the Community Development Block Grant (CDBG) and allows for up to $5,000 to be used towards a 1st time home buyers down payment and/or closing costs. Obviously, there are certain criteria to meet and short application process but it is relatively easy and painless to see if you are a candidate for the money! Contact me to see if you qualify!

Staging Tips to Getting Your Home Sold

June 14, 2011 by Michael Dunn

Do you want to show your home or sell your home? Winning the beauty contest and the pricing war are 2 key elements in getting your home sold. You only get one chance to “WOW” the buyer so why not make it count? Here are a few tips to winning the beauty contest

1. Unclutter –If a house is cluttered, it feels smaller. Give the visual of more space by organizing and removing half the contents of closets and cabinets. This action creates a spacious, organized feel. When in doubt, throw it out! Other options are to give it away, store it or sell it. ***Follow the rule of 3’s (Any flat surface should only have 3 items on it. eg. blender, toaster and knife block…. nothing else!)

2. Clean – Show potential buyers that the home has been well cared for and has pride of ownership. Scrub walls, counters, floors and appliances. Bring the outdoors in with sparkling, clean windows. A scratch cover, wax, or stain/sealer will return the warmth and glow of natural wood. Be sure every room smells as clean as it looks. Use an odor neutralizer to clean away pet and cooking odors. You might jump start this process by initially hiring a professional cleaning service.

3. Repair – Making repairs before the home goes on the market can actually save the seller money, stress and negotiation. Consider a home inspection to eliminate buyers’ objections before they arise. Professionals can handle the complicated repairs while the seller can handle the others. A potential buyer who loves the home but thinks a lot of money will be needed to make repairs may make a low offer.

4. Neutralize – Create a home for many lifestyles and tastes. Neutral paint, décor and carpeting help buyers mentally and emotionally move in. Unusual colors or outdated decorating may make it difficult for buyers to imagine their furnishings in the house. Choose neutral, warm colors. Replace family photos with a few carefully chosen accessories. Some people are allergic to or afraid of animals; the seller should kennel the pets or take the pets out of the house during showings.

5. Dynamize – If buyers can imagine daily life in the house, the seller will build an essential emotional connection with them. Have the seller pretend to be a buyer and take a complete tour of the house from its curb appeal through the entire house. Evaluate the subtle message that each part of the home should convey. Then decide how to add elegance, style and grace. The seller wants to show the buyer how relaxing the home feels, the privacy it offers and the comforts of home that it portrays.

What happens at 3?

June 14, 2011 by Michael Dunn

The other day I was at lunch with my Buddy Jeanette and it dawned on me that I dont know what to do when I get to “3”. Those of you with kids know exactly what I am talking about. The ole 3 count! You know, when you ask for some thing and you dont get it so you start to count. “Im going to count to 3 and you better………….”.

I have 2 girls that are on opposite ends of the spectrum. One of them only allows for me to say 1 and then listens to me automatically. The other one (who shall remain nameless but you have a 50% chance of guess who is who lol) loves to test the limits.

1! (she is pouting with her arms crossed)

2! (“no! im not listening to you!” still pouting and arms crossed)

THR (“ok ok ok fine I will listen” crying her eyes out and probably a full blown temper tantrum)

Has anyone ever made it to “3”? what do you do?? Luckily, I have never made it there as I dont know what to do 🙂

Pool Edition 2011 is out!!

June 14, 2011 by Michael Dunn

Well, it is that time of year again and we have issued our annual pool edition Welcome Home magazine! Every home that Coldwell Banker Legacy currently has listed for sale is in this magazine with a special emphasis on homes with pools! As always, Contact me and I will be happy to drop you off a copy of the Welcome home magazine or mail you one! Don’t miss out on this one!