It doesn’t make financial sense to pay for points to buy down the cost of a mortgage only to refinance the mortgage before reaping the advantage of the buy down. Apparently, however, that’s what virtually all home buyers do when they elect to include points to lower their interest rate with plans to save money over time, according to “Do Borrowers Make Rational Choices on Points and Refinancing?” a special mortgage study by Abdullah Yavas, an Elliott Professor of Business Administration at Penn State’s Smeal College of Business and Freddie Mac analyst Yan Chang.

Only a tiny fraction, 1.4 percent, of borrowers who bought points held their loans long enough to make them pay off. Of those who didn’t buy points, only 1.5 percent would have been better off purchasing them, according to the study an examination of 3,785 mortgages originated between 1996 and 2003. Each “point” is 1 percent of the value of the mortgage. That is, if your mortgage is $200,000, one point is $2,000. Some points are called origination points — charged for originating or writing your mortgage. (more…)

search for : mortgage, refinance the mortgage, Points and Refinancing, origination points

Not since 2005 have mortgage rates slipped well below 6%. As a result, another mortgage refinancing boom is under way. But this time, many homeowners will be watching from the sidelines.

Experts predict that at these levels, about 37% of homeowners could refinance their mortgages and save money on their monthly payment. And, as rates drop further, increasing numbers of consumers will find refinancing their existing mortgage worthwhile.

Unfortunately, many homeowners won’t benefit from the low mortgage interest rates, either because their mortgage is too big or their credit score is too low. In other cases, falling home prices will make it tough for them to refinance. (more…)

search for : mortgage rates, mortgage refinancing, credit score

Falling home prices and higher interest rates have made it hard to borrow against home equity. And, doubts about when the market will hit bottom has left many hesitant to spend money they may not recoup. Contractors who once had backlogs of a year or more now find themselves with only a few projects in the pipeline. Subcontractors, facing a slowdown in new-home construction, are looking for remodeling jobs.

Experts say that a typical homeowner should expect to recoup more of the cost of a midrange version of a remodeling project than an upscale version. Rebuilt kitchens and bathrooms show the most promise for good returns.

Most current trends suggest that bigger is better. Remodelers are knocking down walls to replace little-used formal dining rooms and guest rooms with expanded kitchens and bathrooms. (more…)

Preparation, preparation, preparation is what we are told that makes for a great paint job. Yet, as we all know, paint preparation is one of the ugly sides of home-improvement projects. Sanding and scraping and cleaning, we don’t like to do it, but it’s essential to a good paint job. Like it or not, it’s a step that you don’t want to skip or do poorly, since the quality of your finished product pretty much depends on it.

Three things need to be done in order to insure a perfect or near-perfect paint job — cleanliness, preparation, and a proper drying time.

Some folks forget that paint will stick to most of the things it comes in contact with, which is not necessarily a good thing. If the surface being painted is dusty, for example, the paint will stick to the dust. Since the dust is not well-adhered to the surface below, you have an obvious recipe for paint failure. (more…)

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$5,850,000

MLS Number: 50913

City: Valle Crucis, NC
Stories: 2
Bedrooms: 4 Baths: 4.5
Area: Boone-Blowing Rock, NC
Year Built: 1990
Plus Five fully furnished 1,400 sq. ft. Rental Cottages. Each built in 1996 on approx. 1/2 acre sites. Current cottage average annual rental income $150,000.

39.4 acres with 360 degree view of Blue Ridge Mountains.

5,200 sq. ft. main house built in 1990 on 1.24 acres.

No restrictions and no zoning offer many other options:

* Family compound
* Corporate retreat
* Religous retreat
* Horse farm / Dude ranch
* Recording studio
* Cottages can be sold separately
* Land can be further subdivided if desired

Contact Elizabeth Carter, 336.973.5594 or Greg Stikeleather, Broker, 704.880.5247 or email eacarter@charter.net

click here for more information

search for : Valle Crucis, NC, Blowing Rock, NC, Blue Ridge Mountains

With losses in the billions on home equity and subprime loans, lenders are being forced to re-think the viability of second and third mortgages. And, with the decline in real estate values which result in decreasing homeowner equity, mortgage companies are increasingly walking away from delinquent home-equity loans rather than pushing borrowers into foreclosure. Some lenders, in an effort to protect against future losses, are looking at scaling back home-equity lines of credit held by certain borrowers who are still making payments.

Home-equity lending exploded during the housing boom as homeowners took advantage of rising home values and tapped their equity to fund spending. Others flocked to so-called piggyback loans, which allowed them to finance as much as 100% of a home’s value by combining a mortgage with a home-equity loan. (more…)

search for : subprime loan, homeowner equity, foreclosure

It’s a home buyer’s market. Because of that generally known fact, sellers, particularly new home builders are offering an ever increasing array of incentives to prospective buyers. Incentives can sometimes vary from a free finished basement to a new flat-screen TV. Sellers are betting that the incentives will tempt to close the deal sooner than you might otherwise.

The incentives at the top of your list shouldn’t be a short-lived luxury but a long-term comfort to your future financial independence. To our mind, the number one incentive is knowing that you are getting the best possible price on the home you want.

A drop of just a few tenths of percent in the mortgage interest rate will result in thousands less in payments over the course of a 15 or 30-year mortgage loan. A decrease of a few thousand in the price of your home will mean that you pay less in property taxes, which are often based on the home’s purchase price. (more…)

search for : home buyer’s market, new home builders, property taxes

The less-than-stellar housing market has become a significant “talking point” for candidates looking for votes in foreclosure-heavy states such as Michigan, Nevada and Florida. Stumping around the key states in which she needs to do well in the primaries, New York Sen. Hillary Clinton often mentions the foreclosure crisis campaign speeches.

Former Arkansas Governor Mike Huckabee talked about it in a new television advertisement on the economy that he is airing in Michigan. Economic hot buttons like globalization and job outsourcing may resonate with voters, but it is the housing market that is directly affecting more voters’ wallets. Price declines are limiting homeowners’ ability to move or to tap home-equity loans. Job losses are heavy in housing-related industries. (more…)

search for : less-than-stellar housing market

With recession talk dominating national news, more and more individuals are finding themselves in a quandary over making a geographical move to satisfy employer requests. Employees faced with relocating for their jobs are choosing extreme commutes to avoid uprooting their children.

The popular wisdom that it’s always better for families with kids to stay put isn’t always best. Instead, a family’s best choice depends on kids’ ages, the family’s stability and the attitude of the employee’s spouse.

Some 80% of employees who decline transfers cite family reasons, eight times the levels of 25 years ago, says Atlas Van Lines, which surveys companies annually. The popular wisdom that it’s unwise to relocate a teenager is often correct. Adolescents need to bond with peers and their community. And teens tend to handle a parent’s extreme commute better, sustaining ties with the parent by phone and email. (more…)

search for : extreme commutes, Atlas Van Lines