Tuesday, July 28, 2009

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!

Wednesday, July 22, 2009

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.

Thursday, July 16, 2009

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.

Thursday, July 9, 2009

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.

Monday, July 6, 2009

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.