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!