Happy New Year!

As we begin a new year may we all experience the joy of renewal and the expectation of happiness and the realization of the American dream! Let's be thankful for what we have, and let's ask God's blessing upon our country in 2010.

Best wishes and a Happy New Year to my readers!

Christmas Cheer!

Good news, today! The National Association of Realtors (NAR) reported that the November sales of existing homes across America was an increase of 7.4% over October. Why? It's believed to be a result of falling prices, comparatively low historical mortgage rates, and first time home buyers trying to qualify for the tax credit,which was originally scheduled to expire on November 30th. The tax credit has been extended and in all probability will be a boon to sales through part of 2010.

Also, good news -- Christmas is upon us! This is a special time of the year, and like Thanksgiving we should reflect on how fortunate we are to be Americans. Unlike many people in the world we have the freedom to worship God as we choose and to belong to the church we prefer.

At my house we decorate our grandfather clock each year and call it "the Christmas Clock." Some years my wife and I have even put our presents beneath it. the picture with this post is our Christmas Clock. From my house to yours -- Merry Christmas, and a Happy New Year!

New Library in Athens-Limestone's Future

It's just another sign of progress for our area. It appears that everything is "on-track" to build a new 37,000 square foot library for Athens and Limestone County. And, we are going to be eco friendly in the way it is done. First, an existing building, the old Kroger store on Jefferson Street in Athens will be renovated to be the new library. The building is already purchased, but it will take a fund raising effort to finish up the necessary finances. The county and the city are in partnership to "make it happen," and the Athens-Limestone Library Foundation will be raising money from the public. So, this is not going to be an immediately available resource for our citizens, but it is already well under way as architect plans are available, and fund raising has commenced. If you would like to know how you can be a part of this project, call me. Above is the architects elevation for the building. Nice, huh!?

Award Winning School

It doesn't get much better than this. Athens High School was recently named a Silver Medal School, which means it is one of the best high schools in America. The award was made by U.S. News & World Reports magazine. There is one gold medal school in Alabama and eight silver medal schools. Naturally, city officials, educators, and the local citizens in general, are very pleased. An article in the Athens News Courier, Dec. 12, 2009, noted that "of the 880 students enrolled, 28.5 percent took advanced placement classes last year." This is just one more indicator of the quality in the Athens city schools system.

Two Ways to Save

Consider -- you can get a tax rebate of $8,000 from Uncle Sam by purchasing a home if you are a first time home buyer, OR if you already have a home with a mortgage consider refinancing. With interest rates as low as they have been in a long time, individuals with a home mortgage that still has several years to mature may benefit by refinancing. If you are in this situation, and you intend to continue living in the home you own now either indefinitely or for a few more years, it may pay to refinance. Of course there are administrative costs to be paid if you refinance. By calculating what these will be and dividing that by your current monthly payment you will get a "payback" number which means that it is the number of months required to break even. And, if that doesn't make sense to you then consider the purchase of a home that appeals to you and benefit from the tax credit. Last month 72% of the mortgages applied for across the country were for refinancing. Good luck!

Happy Thanksgiving!

I have much to be thankful for, and I hope each of you can say the same. Today,
November 26th, has been restful and "filling" as my wife and I enjoyed the holiday with friends, and we ate our share of Turkey. I read recently that Turkey can make a person feel sleepy. It sure worked on me. There is a hormone in Turkey, according to the article, as I recall, named Triptophyn (or something like that). It is supposed to make one drowsy. Of course that Turkey had some help. Let's see -- there was also dressing, and some ham, sweet potato souffle, fried apples, jellied cranberry, and to top it off, pumkin pie. Just thought I would wake up from this nap long enough to share. Best wishes to you as we start the holiday shopping season and celebrate Christmas and the New Year.

CALL ME!

Is the Rabbit Out of the Hat?

Now isn't that an interesting question? And, "for heavens sake" what does it mean?

More indicators and opinions of so called "guru's" are pointing toward a better future for home sales. Warren Buffet has called a bottom to the stock market. Yeah, but this is about home sales. OK, but it has been shown historically that a bullish stock market also affects increasing home prices. Anyhow, good news, Warren! Also, the economy expanded 2.8 percent during the third quarter. An expanding economy should be beneficial to stabilized and improving home sales, which by the way "existing homes" on a nationwide basis were just reported to have been "up" in October. Could the nationwide home sales market finally be stabilizing?

Ken Rosen, a real estate economist with the Fisher Center for Real Estate, in San Francisco, was interviewed on Nov. 22nd by MarketWatch, and he says, "yes," the real estate market nationwide has stabilized. He attributes this to the Tax Credit for first time home buyers, which has been extended to April 30th of 2010. He believes that after April 30, 2010 job creation in the nation as a whole will help create demand and support home prices, which he believes have stabilized. Rosen is encouraging individuals who want a house as a home to consider buying now. He believes the country is now on a sustainable growth path.

NEW LOCATION

Hey there! I've been "missing in action" for a few weeks, at least with regard to keeping my blog updated. So, to any of my followers, I apologize.

I am now with RE/MAX Legacy. My new street address is 22980 Highway 72 E, Athens, Alabama 35613. For my friends who know my old location, this new one is "just down the road" toward Huntsville before you get to Piney Creek on the east bound lane of Highway 72, next to Hertrz Rental Car and Custom Flooring & Design.

Stop by to see me, and our new office. It has been under renovation for several weeks, which is another reason for my seeming absence from the fray. The new office is very nice, and I am proud of it. As always, I am ready to do business. The present office phone number is (256) 230-1113. Our old number should also work -- (256) 232-4490.

Over a Barrel

Don't feel that way -- "over a barrel," that is. Markets are always changing. One really big change this year is the return to the real estate market of the first time home buyer. This is a term that requires definition as the Government defines a FIRST TIME HOME BUYER as someone who has not owned a personal residence in the prior three years.

This year, according to the National Association of Realtors, 44 percent of home sales have been to first time buyers. That is the biggest such number since 1991. Of course, the Government's $8,000 tax credit has helped. And, there is now talk of the tax credit dead line (currently Nov. 30th) being extended, which would be a good thing, but don't hold your breath. First time buyers are about to run out of time to use the tax credit unless the time line is changed. Maybe it will happen. Let's hope so!

If I can help, call me.

Where Now?

Interest rates, that is. We all know they have recently been headed downward. Investor's Business Daily newspaper said late last week that Freddie Mac (the quasi Government agency) reported rates had dropped three weeks in a row and were less than anytime since late May of this year. Rates move from day to day and tend to follow the lead of ten year Treasury Notes. The nationwide average late last week for 30 year money was 5.04%. Today (Wednesday) they are down a little more in the Athens - Limestone County area. A local mortgage loan officer this morning quoted me 4.85% on 30 year FHA and conventional loans of more than $100,000. And, there is a lesson. When you ask for rate quotes you need to be specific about the type loan, the approximate amount, and for how long a period of time. If you want a 15 year loan you can expect the quote will be about a quarter point less. Then there are programs such as Rural Development loans which are going to be quoted a little higher than the FHA average. Happy shopping!

Need a Down Payment?

Consider borrowing from your 401K plan or individual retirement account. Seemingly, it would pay to do so, particularly if you are a first time home buyer. As I understand it, money borrowed from a 401 K must be repaid within five years, and generally the interest rate is very low. Indeed, once you get your tax credit of up to $8,000 you could repay that loan. Traditional IRA accounts (I'm not talking about SEP's or Roth's) will allow you to borrow up to $10,000. Check with your fund's advisor, and also check with your financial planner or accountant if you have questions about how this works or if it is the right thing for your to do.

Tech Job Heaven

U.S.News & World Reports website, on September 15th, reported that Huntsville is the fourth best place in the nation to get a high technology job. In an article written by Liz Wolgemuth the magazine stated that Huntsville "...boasts the second-largest tech and research park, Cummings Research Park, which hosts 225 companies and 23,000 employees." So, what has that got to do with Athens and Limestone County? We are part of the Huntsville Metropolitan Area, which also includes Decatur. The three cities form a "golden triangle." There are also lots of jobs created that support high tech, which are lower tech themselves, such as administgrative, sales, tourism, manufacturing -- we really are quite diverse. Limestone County borders Madison County on its west boundary, home to Huntsville. Athens is no more than a twenty-five minute drive from Huntsville, provided the traffic is moving well, otherwise add a few minutes. And, if you have been reading my blog you know of the advantages of Athens and Limestone county as a place to live. If you would like more information about this community send me an e-mail at rodh@pclnet.net and I will send you an information paper.

Stuff!

You've got it! I've got it! Stuff! Treasures! Junque!

I was looking back at newsletters I used to write before the days of "blogging." In 2002 I wrote the following, based on something I had seen on CBS Market Watch. "The average homeowner has so much 'stuff' that 25 minutes a day is spent just looking for things. In a years time we spend a week looking for 'stuff.' Obviously, we are very well off compared to so many citizens of other countries and this is just one more indicator."

So, the point in revisiting this issue is that all those extra 'treasures' around the house often result in clutter. Don't let it build up, especially if you are considering the sale of your home. Clutter makes your home look smaller and it is distracting to purchasers. So, purchasers pay heed, and in the future don't let this happen to you. Sellers you need to clean up, discard 'stuff' as appropriate, or move extra treasures to a storage location.

Glad I could help!

Athens Students Out Perform State and National on SAT

"We really did well -- above the state and national average in every subject tested," said Superintendent of Schools Dr. Orman Bridges, Jr., as reported in the Athens News Courier, Sept. 10, 2009. His comment was due to the release of the recent 2009 Standard Achievement Test (SAT) results. The Athens overall average score was 66.6, which means the students are in the top third nationally.

A Surge in FHA Loans

Yes, the volume of FHA loans has grown tremendously the past year, both nationally and locally. The Investor's Business Daily newspaper reported on Sept. 3rd that the volume of FHA insured loans nationally has tripled in 2009 over 2008. Ancedotally, I estimate the amount of increase locally is "a double." The benefit of an FHA loan is a low down-payment, 3.5%. The FHA requires the Buyer to purchase up-front Mortgage Insurance, which is 1.5% of the mortgage amount and is generally known by its acronym, MIP. The up-front MIP (Mortgage Insurance Premium) can be financed if the appraisal on the property is high enough to support that.



Interested in a home purchase? Call me. (256) 232-4490.

Eighty-three Days!

That's right, eighty three days left. If you want to take advantage of the first time homebuyer tax credit there are 83 days left untill final closing day. The settlement statement for the purchase must be November 30, 2009 or earlier. Remember, unless you are a cash buyer it is going to take an administrative processing time of thirty to forty-five days, for most buyers, depending on what kind of loan financing you hope to obtain. If you are considering the use of a 100 percent financed Rural Development loan then you will need at least 60 days or more of processing time. And, remember, you will need to have a contract of sale in hand in order to apply for the mortgage. It is important as we approach late October that you are already pre approved for a mortgage.



Need more inmformation -- call me, Rod at RE/MAX of Athens, (256) 232-4490.

What is Most Important?

OK, OK, already! Everything is important to a buyer. But, if you are a buyer, trade offs are the reality because most homes are not going to have everything you want within the price you want to pay. So, to the extent possible decide in advance what your "must haves" are. For example, it may be four bedrooms, but a three car garage, though desirable, isn't essential. For most buyers, kitchens and bathrooms seem to be the most important considerations. Enough baths and what comprises them may be important -- for example, a glamour bath or regular bath features. Kitchens -- well, after all, much of a families time is spent there even in this day of fast food and the seeming difficulty for many families to come together at meal times. In the kitchen there are five features that seem to be most important to purchasers, although not universally so. Five such most wanted "wants" in kitchens were featured in the May/June 2009 issue of the Residential Specialist magazine. Depending upon the age of the home and where it resides in the buyer's affordable price range the least likely of the five "wants" to be found in this market are Drinking Water Filtration and Special-Use Storage for Appliances. A separately installed drinking water infiltration system is not something that should be difficult for the home buyer to self install. For your information, the five most desired kitchen features are: Walk-in Pantry (86%), Kitchen Island (80%), Built-in Microwave (72%), Drinking Water filtration (69%), Special-Use Storage for Appliances (66%). Happy house hunting!

Migrating Seniors

They are gon'na be moving on! Today's Robert Powell Retirement Blog on CBS MarketWatch web site, says small towns and rural areas are going to grow significantly between 2010 and 2020. This increase in rural population will be driven by retiring Baby Boomers. Southern small towns and rural areas will grow, over all, by 26.1 percent, according to Powell. Also, the migration of Baby Boomers to vacation areas will accelerate. Perhaps it is a desire to get to a place that is not moving at such a fast pace, or a little less crowded, that will drive this migration. In any case, I can vouch for Athens, Alabama and Limestone County -- the living is good here! Call me!

News Flash! Looking Up!

The National Association of Realtors has just reported that in July existing home sales across the country increased on a seasonally adjusted annual rate of 5.24 million homes. That's the highest level since August of 2007. And, resales have risen for four consecutive months. The rise across the south in July was 7.1 percent. That's good news!

101 Days Left, Wise Owl

Hey, don't let time get away from you. Be the wise owl and take advantage of the tax credit for new home buyers purchasing a home by November 30th. That's right, only 101 days left, but that is enough time. Go see a mortgage banker to get pre-approved by a mortgage loan officer, and give me a call. WHO is a first time home buyer? Anyone who has not owned a home in three years is classified as a first time home buyer. OK, Wise Owl, it's up to you now!

Green Shoots!

OK, that is a bit over used phrase lately, but it does seem some good things are happening in the economy, and that will lead to a better real estate market for homes across the nation. Green shoots! Gee, even home builder stocks are doing well in the stock market.

Today, the Federal Reserve Board said they were holding interest rates steady. Of course, the ten year treasury note is what mortgage rates tend to follow, and the Fed doesn't influence them quite as much as the shorter term interest rates. But, everything fits together, and that Federal Reserve influence can't help but keep mortgage rates down awhile longer. If you are considering purchasing a home this may be the opportune time.

July Sales in Limestone County

OK! According to North Alabama MLS, in July there were 66 homes sold in Limestone County at an average sales price of $158,000. Thirty-five percent of these sales were FHA/VA. Nationwide "pendings" have increased recently. Perhaps the market is beginning to "look up!" Give me a call!

How Big Is It?

Across the nation smaller homes are all the rage. So called "McMansions" are not as popular as just a few years ago. According to a recent article in Investor's Business Daily, a median sized new home in the 1950's was just under 1,000 Sq. Feet. By 1970 the median was 1,400 Sq. Feet, and this changed to more than 2,400 by 2004. Last year the trend reversed direction and the national median is now 2,200 Sq. Feet.

Median square footage may tell us about trends, but the fact is that each family has its own unique needs and wants. What is important is to "right size." Home buyers need to pay attention to price so that a home fits into their budget. Each family should feel comfortable that they can cover the mortgage each month and other costs of living. What a person qualifies for in terms of mortgage and what is realistic may not be the same thing. Anyhow, tied to the price issue is "right size." Assess your current and future size needs and plan your home search accordingly. Buy what you need and afford. Although a home can be investment it is primarily for shelter and security. Plan accordingly!

Limestone County, Great Place to Live

The Athens News Courier recently reported that the County's bond rating has improved from A to AA. That's significant! It indicates that in a tough economic climate across the nation our county leaders are managing local financial resources in a responsible way. That's just one more reason that Athens and Limestone County is a great place to live.

Reasons To Buy a Home Today

1. Homes are affordable due to the soft market.

2. Interest rates are low compared to history.

3. Due to market softness there is lots of inventory to choose from.

4. If you are a first time homebuyer you need to take advantage of the $8,000 TAX CREDIT. To take advantage of this tax incentive you must act before December of 2009.

5. Mortgages may be more expensive in the future.

6. Home ownership helps you to achieve long term financial stability.

It'll Be Over When It Is Over!

Good news! I am beginning to hear more financial commentators say we are at the bottom of the recession and soon we should see some upside! You know, those "green shoots" the newspapers keep telling us about. The good news here in Athens and Limestone County is that our real estate market experience has not been as difficult as so many areas of the USA. Call me and let's discuss the market.

My Services

Welcome to my blog. My name is Rod Huffman and I am a Broker Associate with RE/MAX of Athens with eighteen years experience as a real estate professional. I offer the following services:

• Listing your home for sale so that other members of my firm and other members of the multiple listing service will have access to your home and be able to assist in selling your property
  
  
  
• Buyer Agency -- I am an Accredited Buyer Representative (ABR)
  

Understanding Different Types of Loans

Today's homebuyer has more financing options than have ever been available before. From traditional mortgages to adjustable-rate and hybrid loans, there are financing packages designed to meet the needs of virtually anyone.

While the different choices may seem overwhelming at first, the overall goal is really quite simple: you want to find a loan that fits both your current financial situation and your future plans. Though this article discusses some of the more common loan types, you should spend time talking with different lenders before deciding on the right loan for your situation.
General categories of loans Most loans fall into three major categories: fixed-rate, adjustable-rate, and hybrid loans that combine features of both.

Fixed-rate mortgages As the name implies, a fixed-rate mortgage carries the same interest rate for the life of the loan. Traditionally, fixed-rate mortgages have been the most popular choice among homeowners, because the fixed monthly payment is easy to plan and budget for, and can help protect against inflation. Fixed-rate mortgages are most common in 30-year and 15-year terms, but recently more lenders have begun offering 20-year and 40-year loans.
Adjustable-rate mortgages (ARM) Adjustable-rate mortgages differ from fixed-rate mortgages in that the interest rate and monthly payment can change over the life of the loan. This is because the interest rate for an ARM is tied to an index (such as Treasury Securities) that may rise or fall over time. In order to protect against dramatic increases in the rate, ARM loans usually have caps that limit the rate from rising above a certain amount between adjustments (i.e. no more than 2 percent a year), as well as a ceiling on how much the rate can go up during the life of the loan (i.e. no more than 6 percent). With these protections and low introductory rates, ARM loans have become the most widely accepted alternative to fixed-rate mortgages.
Hybrid loans Hybrid loans combine features of both fixed-rate and adjustable-rate mortgages. Typically, a hybrid loan may start with a fixed-rate for a certain length of time, and then later convert to an adjustable-rate mortgage. However, be sure to check with your lender and find out how much the rate may increase after the conversion, as some hybrid loans do not have interest rate caps for the first adjustment period.

Other hybrid loans may start with a fixed interest rate for several years, and then later change to another (usually higher) fixed interest rate for the remainder of the loan term. Lenders frequently charge a lower introductory interest rate for hybrid loans vs. a traditional fixed-rate mortgage, which makes hybrid loans attractive to homeowners who desire the stability of a fixed-rate, but only plan to stay in their properties for a short time.

Balloon payments A balloon payment refers to a loan that has a large, final payment due at the end of the loan. For example, there are currently fixed-rate loans which allow homeowners to make payments based on a 30-year loan, even though the entire balance of the loan may be due (the balloon payment) after 7 years. As with some hybrid loans, balloon loans may be attractive to homeowners who do not plan to stay in their house more than a short period of time.
Time as a factor in your loan choice As has been discussed, the length of time you plan to own a property may have a strong influence on the type of loan you choose. For example, if you plan to stay in a home for 10 years or longer, a traditional fixed-rate mortgage may be your best bet. But if you plan on owning a home for a very short period (5 years or less), then the low introductory rate of an adjustable-rate mortgage may make the most financial sense. In general, ARMs have the lowest introductory interest rates, followed by hybrid loans, and then traditional fixed-rate mortgages.

FHA and VA loans U.S. government loan programs such as those of the Federal Housing Authority (FHA) and Department of Veterans Affairs (VA) are designed to promote home ownership for people who might not otherwise be able to qualify for a conventional loan. Both FHA and VA loans have lower qualifying ratios than conventional loans. At this time FHA requires a 3.5% downpayment. VA does not require a downpayment, but of course you must be a veteran to qualify.

Bear in mind, however, that FHA and VA loans are not issued by the government; rather, the loans are made by private lenders. FHA loans are insured to the actual lender and VA loans are guaranteed in case the borrower defaults. Remember too, that while any U.S. citizen may apply for a FHA loan, VA loans are only available to veterans or their spouses and certain government employees.

Conventional loans A conventional loan is simply a loan offered by a traditional private lender. They may be fixed-rate, adjustable, hybrid or other types. While conventional loans may be harder to qualify for than government-backed loans, they often require less paperwork and typically do not have a maximum allowable amount.

Federal Home Loan (FHA) Mortgages

FHA has made a "come back." Until the past year, FHA mortgages were not widely used. Now it is harder to qualify for a conventional mortgage than a year ago because mortgages are "credit score" driven. FHA is more generous in this regard, and the key to obtaining an FHA loan is to meet the traditional qualifying indicators, debt and income ratios. That is easier for most buyers.

If you have 3.5 percent for a downpayment you can even finance closing costs if the home will appraise for enough that the bank is satisfied with the purchaser's equity in the home. Indeed, seller's, if they are motivated to do so, can pay up to 6% in closing costs for the purhaser. Additionally, another inducement to buying this year is that if you are a "first time" homebuyer (see my earlier post on this) the Government will give you an $8,000 tax credit for a home purchased this calendar year.

Call me! Phone (256) 232-4490.

Downsizing

Oh-h-h! Have you ever thought you needed to get rid of "stuff." That's what downsizsing is all about. Most often I hear older couples or "empty nesters" commenting on this need. It's true that taking care of a home gets more difficult as we age or a large home may no longer seem economical. Unfortunately, downsizing is not easy. Why not? Because we become emotionally attached to our belongings and we realize "something has got to go." Faced with the reality of having a thousand or so less square feet of space the end result is to recognize "I just can't part with my formal dining room suite," or "I need ("want") all those tools; I can't do with a smaller garage and I just must have a shop." Yes, it is a reality check and hard work to downsize. So, older homeowners need to confront this issue early. If you decide to downsize you really need to get started on this project a year in advance of making your move.

Limestone County Schools

Good going! On June 26th the News Courier reported that Limestone County Schools had achieved County wide accreditation. This is a more prestigious achievment than an individual school attaining accreditation since it means the entire county school system is accredited. The accreditation was granted based on a review by an AdvancEd quality assurance team. So, how good is this accomplishment? John Wayne King, County School Board member said it may be the first county wide accreditation in the state. The News Courier quoted our County Schools Superintendent Barry Carroll saying "This is a huge accomplishment by our district." He also said, "The visiting team members were very impressed with our school system. I believe they recognized that our employees are our greatest strength. They saw evidence of our mission, goals and objectives and how we work together as a team to provide a quality education for all our students."

THE MARKET HERE

It's better than you read about in the newspaper. True, the real estate market in Athens and Limestone County is not as good as it was in 2007 and the early months of 2008, and it is best characterized as a buyer's market. That said, due to this area's employment record exceeding so many other areas, and the growth prospects of 2010 because of the BRAC, our market has held up better than most. If you are not familiar with the term "BRAC," ask me.

TAX BREAK! FIRST TIME HOME BUYERS!

First, even if you've previously owned a home Uncle Sam says you are a first time buyer if you haven't owned a home in the past three years.

If you are a first time buyer and purchase a home on or after Jan. 1, 2009 and before Dec. 1, 2009, you may qualify for this TAX CREDIT. Tax credits are better than deductions as they count dollar for dollar against income rather than being tied to an income bracket in the tax tables. A potential disqualifier might be if one partner, husband or wife has owned a home within the past three years.

Potentially, qualifying purchasers can get an $8,000 tax credit to use against either their 2008 or 2009 Federal Income Tax. This is a really good deal and can go a long way toward helping individuals or couples to reduce the costs of homeownership; however, there are qualifying income levels. Ask me about this, or talk to your tax preparer or accountant.