We seldom acknowledge the role of mortgage calculators when we take out a mortgage. But these tools are indispensable in the home buying process. They not only help you to find out monthly payments on mortgage but they will help you to assess your repayment capacity.

1. When you are planning to take out a mortgage, there are many aspects that you need to assess. For instance, there are many borrowers who prefer to compare whether renting is a better option than buying. So, they use the Rent or Buy mortgage calculator to find out the same.

2. It is a well known fact that rates of interest play an important role in determining your monthly payments on mortgage. So, you can use the rate of interest calculator for the same. It will help you to find the amount you have to shell out if you opt for fixed-rate or adjustable-rate mortgage. Depending on your convenience you can opt for FRM which will keep your monthly payments on mortgage constant throughout the loan term. On the other hand, if you opt for ARM, your payments will change depending on the prevailing market rates.

3. The loan term calculator will help you to find out the amount you have to pay each month in case you opt for 15-year or 30-year loan term.

4. Your income is vital. Mortgage calculators will help you to find out the income you should have that will support your monthly payments on mortgage.

Another factor that will not affect your monthly mortgage payments but will determine the total cost of the loan is the mortgage Annual Percentage Rate. The mortgage APR will help you to compare rates offered by different mortgage lenders. However, it may not give you the exact cost of the total loan because different mortgage lenders take into account different fees and charges to calculate costs.

Please share any comments you might have: mark@home2nashville.com
 
Long Term Rates Report:  Long-term Rates Drop Again!

If you’re in the market to purchase a home, you’ve probably had your eye on the cost of money lately. Freddie Mac is reporting that long term rates, such as those used attached to 15-30 home mortgages are have again fallen, Great news for those purchasing or refinancing a primary residence:

Long-term mortgage interest fell for the second straight week as the 30-year fixed rate settled at an average of 5.06 percent compared to 5.09 percent a week ago, according to Freddie Mac. Also falling were rates for 15-year fixed loans, which dipped from 4.50 to 4.45 percent; and for five-year, adjustable-rate mortgages, which sank from 4.44 percent to 4.32 percent. However, rates for one-year ARMs rose to 4.39 percent from 4.31 percent.  [SOURCES: Freddie Mac; Information, Inc.]
Need that name of a good lender?

Nashville Real Estate Search and home@nashville.com can provide you the names of several top-notch lender representatives. The lowest rate is not always the best choice. Imagine how much more you’ll spend if the lender you choose doesn’t deliver an appraisal on time,  or if a loan package does not arrive in time for the transaction to take place. These days, it’s important to work with a lender that can and will take the time to explain each step of the loan, as well as the transaction process. So many Realtors will gladly retell horror stories of lender and lender representative, that did only half of their job…obtaining the loan, only to let the Buyer down at the closing table. Agents will site huge loan fees, changes in rates, loan documents having incorrect information, and a long laundry list of problems that either delayed the transaction, or prevented the sale. Make sure that your Realtor and your lender on the same page at every step from, contract to close. Often your Realtor can give you a first hand recommendation stemming from a transaction that was done by the book, from start to finish.

Benefits of Ownership

Owning a home is the American dream. Right now the timing for Nashville home sales is better than it has ever been.  Owning a home in Nashville not only provides amazing tax benefits but it also provides shelter and security to families. Did you know that:

— Dollar for dollar, the rate of return on an individual’s cash down payment on a house is substantial? And that repeat buyers are able to put 19% more down on a new home due to appreciation?

— Home owners move less often and are more likely to vote and volunteer time for political and charitable causes than renters?

— When you own a home in  you can deduct the property taxes and mortgage interest from your income taxes?

— The gains that you make on a primary  residence that you’ve occupied for two years out of 5 can be tax free?

Housing Market Facts

NAR has created a new website www.HousingMarketFacts.com to help consumers find out the latest information about the Nashville housing market and the issues that affect you, information specifically for buyers, how to do more research, and learn more about the benefits of home ownership.

Mortgages are at Historically Low Rates

For buyers who qualify,  mortgage rates are near historical lows. Rates are well under 6%. According to data provided by Freddie Mac, rates averaged 9.2% in the past 30 years. Go to www.FreddieMac.com and look at the Primary Mortgage Market Survey® for more information on the latest rates. In addition, low interest rates, coupled with recent corrections, give people looking to upgrade a unique opportunity to take advantage of ‘market conditions in recent home sales in Nashville.

The Value of Your Investment

Despite some contrary media reports and some moderate losses in value in the short-term, Nashville home values long-term have and will continue to rise. Real estate is a long-term investment. Home values could fall in some years, though, on average over the  past 30 years, the  median price of existing homes in Nashville has increased more than 6 percent every year. Thanks to the power of leverage, a homeowner’s return on investment is even more impressive over time. You are in the midst of a buyers’ market. There hasn’t been a better time to purchase a home in Nashville in years!  Mortgage rates are at an all time low and sellers are motivated.  Home sales in Nashville are strong.    Owning a home is a great investment in your future, and can lead to many, many years of happy memories. So why wait? It is a great time to buy!  Want to know more? Contact me, Mark, your Nashville Real Estate Agent,  about helping you achieve your American dream!

IT IS A GREAT TIME TO BUY!!

Thanks for visiting Nashville Real Estate Search Online

Nashville Real Estate Search Online and the First Time Home Buyer Tax Credit

Part 1 of a 2 Part Posting

There is a an enormous amount of interest in the new Tax Credit that is available for “First Time Buyers”.  The purpose of this posting is to give BUYERS insight as to how they might benefit from these new Federal guidelines.

I’ve made this a 2 part posting as there is a lot to digest, and because there are quite a few resources within that I recommend reviewing before making a decision.

IT”S A GREAT TIME TO BUY!!

Mark Haininig, and Village Real Estate Services can help you and represent your interests. Mark Haining, REALTOR® is a buyer’s agent with the skills and experience to help promote your interests and guide you through what can be a very complex transaction.

Motivated Sellers and Inventory

Now is an ideal time to buy, in most markets prices won’t go any lower and there is an abundance of inventory. Inventory of homes for sale in Nashville is at a 15-year high. There are many options out there for many buyers and many sellers who are willing to negotiate and work towards a win-win situation that works for both parties. Go to www.home2nashville.com to see hundreds of active listings.

Nashville  Home Sales are Getting Stronger and Every Market is Different

Remember that all real estate is local and that all markets are different. There are opportunities out there for a buyer if you’re willing  to look. The Home Buyer Tax Credit contained in the Housing and Economic Recovery Act of 2008 was updated in the American Recovery and Reinvestment Act of 2009. For 2009 purchasers the credit is $8000 and does not need to be repaid. The credit is available through December 1, 2009, meaning qualified buyers only have a short window of opportunity to take advantage of this special program. A modest recovery for existing-recent home sales in Nashville is expected in 2009. Pent-up demand, coupled with an abundance of safer mortgage products, will lead to near-term market improvements. The Emergency Economic Stability Act enacted on October 3, 2008 will help to improve credit markets and allow housing to lead the economic recovery.

FHA Loans Set to Increase

There are many choices for buyers looking for mortgages in this market. One option, FHA home loans, are a viable alternative for many first time buyers. The Federal Housing Administration (FHA)— which is part of HUD — insures the loan, so your lender can offer you a better deal, offering low down payments, low closing costs, and easy credit qualifying. FHA market share for home purchases is expected to rise significantly over the next 3 years, from an estimated 4% in 2007 to an estimated 35% in 2009. Find out about FHA and other loans, go to www.Hud.gov/buying/loans and www.REALTOR.org and do a search for Consumer Literacy.

Part II to follow.

Thanks for visiting  Nashville Real Estate Search Online