PruCalVoices

Prudential Speaker Series 2012: Bring Your Challenges!

Jean Joh — Tue, 21 Feb 2012 04:21:12 +0000

Life is full of challenges, especially when it comes to making decisions about your financial and real estate needs. One of the keys in facing such challenges is to be well informed as to all your available options. As part of Prudential San Bruno’s goal to become a valuable resource for the individuals and families in our community, we are hosting a special speaker series this year, in which we hope to address many of your questions and concerns, and you are invited to be our special guest. The talks will take place every 4th Thursday of the month from February to May at the Millbrae Public Library, starting at 6:30 p.m.

This month’s program will be on Thursday, February 23^rdand the topic will be “Mortgage Workshop: Finding the right mortgage for each stage of your life.” Whether you’re a first-time buyer (or know someone who is), thinking about taking advantage of the fantastic rates through a refinance, or a longtime homeowner with built-up equity in your home, there will be something for everyone.

We’re hoping for a big turnout, so if you can sign up beforehand, we’ll be sure to save you a seat. Even if you don’t have a chance to sign up, feel free to just show up and gain some valuable information. Hope to see you there!

For more information and to sign up, go to: http://www.prucal.com/speakerseries.aspx

Jean Joh
www.JeanJoh.com

“Because Real Estate Is More Than Buying or Selling a House…”

Thinking of Refinancing?

Lee Ginsburg — Tue, 21 Feb 2012 03:25:41 +0000

With the lowest interest rates ever, have you been thinking of refinancing?

There is a lot more to it than just the rate.

How much of your current payment is going towards principal?

Want money for remodeling, college, investing?

Should you pay down your loan?

Should you go with a 30 year loan or the 15 year Fixed rate or the very tempting 5 year rate?

I invite you to join us at a Complimentary Mortgage Planning Workshop.

NO SELLING!

Just a discussion on Finding the Right Mortgage For Each Stage of Your Life.

What is the right mortgage?

When should I refinance?

Should I consider a reverse mortgage?

Mortgage Planning Workshop

Thursday Feb. 23 at 6:30 PM

Millbrae Library, Meeting Room A, Civic Center Plaza Millbrae

Free Parking and Refreshments

For Reservations call 650-871-3200 or email speakerseries@prucal.com

“It Is Better To Own Real Estate and Wait, Than Wait to Own Real Estate”

Lee Ginsburg
www.LeeSellsMore.com

FHA Appraisals – Part II: The Bathroom Inspection

Jay Sondhi — Wed, 15 Feb 2012 20:00:10 +0000

I’m back with an other quick video from Bob Singer at Tracappraisals with regard to FHA appraisal inspection. There is a common mis-conception about FHA loans. Many folks out there, realtor and borrower alike are under the impression that the FHA will be sending an inspector out to the property to make sure that it will pass muster. This is not true. The appraiser will be conducting an inspection just like any other appraisal, but there are some extra pieces that they will consider. Take a look at this video with Bob Singer as he inspects the bathroom.

Jay Sondhi
Guarantee Mortgage
415.694.5512 direct
http://www.jaysondhi.com/

What Do You LOVE Most About Your Home?

Karin Cunningham — Tue, 14 Feb 2012 00:06:03 +0000

With Valentine’s Day coming up, and my being a Realtor, I thought it would be appropriate to ask people what they LOVE most about their homes! I posted the question on my personal Facebook page and these are some of the responses I got…Dolores in Richmond, Ca. said she LOVES that her neighborhood is quiet and Barbara from Brisbane, Ca. said she LOVES that every time she goes out on her deck, it feels like she’s on vacation. Julie in Hawaii said she LOVES dining on her lanai and relaxing outdoors. Kamala in South San Francisco said she LOVES her office facing the yard and all the critters that pass through, the view of the mountains, and pretty quiet neighbors. She LOVES the bedrooms upstairs away from common areas and hardwood floors. Sasha in San Bruno, Ca. said she LOVES her view!

I know what I LOVE about my house…I LOVE that it was built in 1907 and has a lot of old fashioned details like high ceilings and thick floor moldings, built in cabinets and stained glass windows! I LOVE the neighborhood rooftop views because I can see the ice on the roofs in the mornings and a little bit of the SF Airport. I LOVE that the layout is like no other house in the neighborhood. It’s one of a kind! It has no hallways but it has 4 bedrooms scattered throughout the house and a basement with a bunch of trippy rooms and a half bath!

I LOVE interactive blogs so if you live in an apartment rental, house, house boat, room in a house, and you LOVE something about it, please let me know! Happy Valentine’s Day!

Karin Cunningham

To search for homes visit www.KarinCunningham.com

For San Bruno events and activities visit www.facebook.com/sanbrunolife

Appraisals

Kathy Wall — Mon, 13 Feb 2012 04:22:36 +0000

Whether you are looking to refinance your home or to purchase a new home, an appraiser is going to have a big impact on whether you get your loan. Anytime you get a home loan, the bank will send out an appraiser to determine the value of the home.

I attended a meeting yesterday with one of the top appraisal companies in the Bay Area, a company by the name of Axis. Their very difficult job these days is to let the banks know exactly how much your home is worth.

Receiving your appraisal can sometimes be shocking, particularly if you believe your home is worth more than all of the other homes in the neighborhood. Following are just things that you need to take into consideration when reviewing an appraisal you have received:

1) If you have spaces in your home that are unpermitted, the appraiser cannot consider them in their appraisal. They will only consider legal rooms in their appraisal and their primary consideration is the gross living area, not the garage, basement or stairs.

2) Is every part of the house connected to the rest? If you cannot access the whole home through the finished interior, the separate entry area may not be considered as part of the gross living area (GLA) and is given a separate value, even if it is a legal space.

3) The size of your yard may or may not help your appraisal. If the land is flat and usable, it will get more weight in the appraisal than a big lot with no usuable space. In addition, if your home has a view it will, possibly, get a better valuation.

4) Appraisers can only consider comparable sales in the same neighborhood as yours. Unless there are absolutely no othe comps, they will not use sales from adjacent neighborhoods.

5) They try to use sales data no older than 90 days, so if your neighbor’s home sold 6 months ago, they will most likely not take that into consideration.

6) If the appraiser notices significant defects, such as large cracks in the foundation, plumbing/electrical that is clearly not permitted, they will take that into consideration.

All that being said, if you receive an appraisal that you are positive is not correct, you have the right to appeal the appraisal. They key to your appeal will be to clearly show that there are good reasons why your home should be valued higher than other properties in the area. You need to be clear, consise and present cold hard facts.

And, when appealing or disageeing with an appraiser, it is important to remain calm and as pleasant as possible. Remember, they are not out to harm you, they are simply doing their job. Like all of us, they are not perfect, however and most appraisers are willing to listen if you have data that may change their valuation. Keep in mind that although the appraisers have guidelines they must follow, making an appraisal still has subjective factors. One appraiser may give more weight to a bay view than another one might.

Lastly, if you have an appraisal appointment set up and realize before the appraiser comes that he/she is from another area and knows nothing about your area, you have the right to request a different appraiser.

I hope that you find this information helpful…If you have additional questions, please don’t hesitate to contact me.

Kathy Wall
Prudential California Realty
(415) 608-4168
DRE #01163766

What is a reverse mortgage?

Dean Rizzi — Thu, 09 Feb 2012 02:34:53 +0000

A reverse mortgage is a special type of loan made to older homeowners to enable them to convert the equity in their home to cash to finance living expenses, home improvements, in home health care, or other needs.

With a reverse mortgage, the payment stream is “reversed.” That is, payments are made by the lender to the borrower, rather than monthly repayments by the borrower to the lender, as occurs with a regular home purchase mortgage.

A reverse mortgage is a sophisticated financial planning tool that enables seniors to stay in their home or “age in place” and maintain or improve their standard of living without taking on a monthly mortgage payment. The process of obtaining a reverse mortgage involves a number of different steps.

The first most widely available reverse mortgage in the United States was the federally insured Home Equity Conversion Mortgage (HECM), which was authorized in 1987.

A reverse mortgage is different from a home equity loan or line of credit, which many banks and thrifts offer. With a home equity loan or line of credit, an applicant must meet certain income and credit requirements, begin monthly repayments immediately, and the home can have an existing first mortgage on it. In addition, there is no restriction on the age of borrowers.

In general, reverse mortgages are limited to borrowers 62 years or older who own their home free and clear of debt or nearly so, and the home is free of tax liens.

Borrowers usually have a choice of receiving the proceeds from a reverse mortgage in the form of a lump sum payment, fixed monthly payments for life, or line of credit. Some types of reverse mortgages also allow fixed monthly payments for a finite time period, or a combination of monthly payments and line of credit. The interest rate charged on a reverse mortgage is usually an adjustable rate that changes monthly or yearly. However, the size of monthly payments received by the senior doesn’t change.

Some reverse mortgage products also involve the purchase of an annuity that can assure continued monthly income to the senior homeowner even after they sell the home.

The size of reverse mortgage that a senior homeowner can receive depends on the type of reverse mortgage, the borrower’s age and current interest rates, and the home’s property value. The older the applicant is, the larger the monthly payments or line of credit. This is because of the use of projected life expectancies in determining the size of reverse mortgages.

Seniors do not have to meet income or credit requirements to qualify for a reverse mortgage.

Unlike a home purchase mortgage or home equity loan, a reverse mortgage doesn’t require monthly repayments by the borrower to the lender. A reverse mortgage isn’t repayable until the borrower no longer occupies the home as his or her principal residence.

This can occur if the sole remaining borrower dies, the borrower sells the home, or the borrower moves out of the home, say, to a nursing home.

The repayment obligation for a reverse mortgage is equal to the principal balance of the loan, plus accrued interest, plus any finance charges paid for through the mortgage. This repayment obligation, however, can’t exceed the value of the home.

The loan may be repaid by the borrower or by the borrower’s family or estate, with or without a sale of the home. If the home is sold and the sale proceeds exceed the repayment obligation, the excess funds go to the borrower or borrower’s estate. If the sales proceeds are less than the amount owed, the shortfall is usually covered by insurance or some other party and is not the responsibility of the borrower or borrower’s estate. In general, the repayment obligation of the borrower or borrower’s estate can’t exceed the value of the property.

In general, a borrower can’t be forced to sell their home to repay a reverse mortgage as long as they occupy the home, even if the total of the monthly payments to the borrower exceeds the value of the home.

Download a Reverse Mortgage Application

Dean Rizzi
Managing Partner
Guarantee Mortgage
636 4^th Street
San Francisco, CA 94107

Direct : 415-694-5533
Fax: 415-694-5501
www.DeanRizzi.com
DRE #01125960, NMLS #237278

‘Tis the Season for Tax Breaks

Mark Hasha — Tue, 07 Feb 2012 00:06:15 +0000

     With April 15 rapidly approaching many are working hard to complete their taxes. For those who have recently bought or sold a home, there are a number of tax deductions that that may be available to them.
   Real estate broker’s commissions, title insurance, legal fees, advertising costs, administrative costs, and inspection fees are all considered selling costs and may be used to reduce one’s taxable capital gain by the amount of the selling costs. That could result in a big savings depending on the final sale price.
Interest that is paid on a mortgage is also tax-deductible, within limits. A married couple filing jointly can deduct all their interest payments on a maximum of $1 million in mortgage debt secured by a first or second home.
   Buyers may also be able to deduct some of the interest they paid on a home equity loan or similar line of credit.
    One deduction that many buyers often overlook is points. Points or origination fees on a home loan that were paid during the purchase of a home are generally tax-deductible in full for the year in which they were paid.
     Refinanced mortgage points are also deductible but only over the life of the loan – not all at once. Homeowners who refinance can immediately write off the balance of the old points and begin to amortize the new.
    If your lender required private mortgage insurance, the PMI premiums are tax-deductible for mortgages taken out from 2007 through 2011.
   Making improvements to property prior to the sale or once one moves in might qualify for an interest deduction on your home-improvement loan. Qualifying capital improvements are those that increase your home’s value, prolong its life, or adapt it to new uses, such as adding a porch or installing energy-efficient windows.
    Many times during a sale, the seller will send the local tax collector’s office a check for real estate taxes prior to the closing. In many circumstances, however, the buyer will pay a pro-rated portion of the taxes for the year at closing. This tax deduction also gets overlooked.
    For those working from their new home: If a room is used exclusively for business purposes, they may be able to deduct home costs related to that portion, such as a percentage of your insurance and repair costs, and depreciation.
    In some instances, if you have moved because of a new job, moving costs may be deducted. These can include travel or transportation costs, expenses for lodging, and fees for storing your household goods.
    Every year the tax laws change and certain tax deductions become available while others phase out. If you have recently bought or sold a home, it’s probably a good idea to seek out a professional tax consultant to do your taxes as missing deductions that you can legally claim can add up to quite a bit of money.

Mark Hasha
Prudential California Realty
I can be reached at (650) 799-0731 (cell/text) or email mark@markhasha.com

Top 5 Reasons to Buy a House in the Bay Area in 2012

Karin Cunningham — Mon, 30 Jan 2012 22:13:57 +0000

1. Prices are down!

2. Interest rates are a low 4% and below. With interest rates low and prices down, people who have had the same income for the past 2 years can qualify for home loans easier.

3. FHA loans requires only 3.5% down.

4. The Bay Area is the leading real estate market next to New York. There is always a demand for housing here whether it’s San Francisco, San Mateo County, Marin, or East Bay. If you buy in 2012 and hold on to your property you may prosper in the years to come!

5. It’s a great rental market! If your desire has always been to invest, you won’t have trouble finding renters in 2012.

Karin Cunningham

www.KarinCunningham.com

www.FaceBook.com/SanBrunoLife

650-438-3504