Real Estate Information Archive

What should I do?  Is the market ok? Interest rates are really low, should I refinance?

Theses are questions that people ask every time I go out.  The answer varies and is not that simple.  Interest rates are really low, but if you think you will be moving in the next year, then the cost of refinancing is not offset by the lowered payments.  You should speak with an accountant if you are unsure of the true costs.  Sometime the banker giving you money is not looking out for your long term interest.  They entice you with the lower payment and roll the closing costs and appraisal fees into your new loan.  This just raises the payoff on your home and you will have wasted this money if you will be selling in the near future. 

I define the near future as less than two years.  Some loans may charge you a slightly higher interest rate to compensate for the fees and not raise the loan amount.  This might be a better route if you know you will be selling, that is if it lowers your monthly payment.  Also if you've paid 4 years on your loan don't just go into a new 30 year.  set the amortization at 26 years and see what the difference in payment is, why pay interest for an additional 4 years if you do not have to.

Now might be a great time to move up or down into the right sized house.  There are great opportunities on the market.  In our area we will see more properties coming on the market and the perfect home for you might be among them.  There will be more foreclosures.  There is a shadow inventory in our area and it will be coming on the market this winter.  Foreclosures do sell for less than a nice home, you may be able to get a good buy.

You might look at an investment property.  Rentals are in high demand.The stock market is not doing all that well, low returns and lots of uncertainties.  Maybe its time to invest in real estate.  Rates are low and prices are down.  If this is something you might want to do please call me to discuss being a landlord.  It is not for everybody.  You must be disciplined and reinvest your returns into your property or save for that big repair.  It is not a matter of if you will need money for your rental, but when.

I get a lot of questions about real estate and I love to answer them.  Real Estate is local, you should talk with a local expert.

Call me if you would like to talk, 907-360-7471.

Anchorage, Thursday, September 16, 2010 - Qualifying Alaskans will have greater access to home ownership through a $625,000 loan approved by the Alaska Housing Finance Corporation (AHFC) board of directors Tuesday. The loan will allow Anchorage Neighborhood Housing Services (ANHS), also known as Neighborworks Anchorage, to continue its down-payment assistance loan program for under-served markets, and provide assistance to borrowers who would not qualify for home ownership due to changes in the market, such as higher housing costs or lower interest-rate subsidies.

Since June 1996, AHFC has loaned a total of $21.25 million to ANHS, which in turn has closed a total of 773 loans with an average loan of $30,045 under this program.

Loans to Sponsors (LTSP) is a program under which AHFC, subject to the availability of funds, makes zero percent loans to non-profit corporations, regional housing authorities, or government entities to make home ownership more accessible to low- to moderate-income borrowers. Currently eight Sponsors, consisting of five nonprofits and three regional housing authorities, administer approximately $16.4 million in low-interest loans to low- to moderate-income borrowers. Sponsors are limited to an annual allocation of $625,000.

The program ultimately will provide financing to lower-income individuals or persons who would not otherwise qualify for financing due to income limitations, down-payment requirements, loan-to-values, or other considerations. Recipient eligibility for the loans is based on 80 percent% of the median income for the area, adjusted for family size and property location, as well as the lending criteria established by the Sponsor's guidelines. AHFC’s loan is repaid by ANHS from the Recipient’s payments paid to ANHS.

AHFC is a self-supporting public corporation with offices in 16 communities statewide. It provides statewide financing for multi-family complexes, congregate facilities, and single-family homes, with special loans for first-time home buyers, low- and moderate-income borrowers, veterans, teachers, nurses, public safety officers, and those living in rural areas of the state. AHFC also provides energy and weatherization programs, low-income rental assistance in 17 communities, and special programs for the homeless. Since 1986, AHFC has contributed more than $1.95 billion to Alaska’s State budget revenues through cash transfers, capital projects and debt service payments.

Where does the time go?  I wonder this as I fly through week after week.  Earlier this summer I injured myself having fun, playing softball I tore my Achilles tendon. Back in June I had surgery and thought that it would be forever before I was better.  Now 12 weeks later I almost recovered and was able to skate once again (please don't tell my Physical Therapist).

The school year has started and all the activities that go along with it.  This last weekend was the AHBA Parade of Homes, and the weather was beautiful.  Lots of couples and families out looking at the new homes.  Everyone was in a great mood and looked like they were enjoying themselves.

As I write this blog I am reminded that you need to write down the things you need to do.  Writing appointments in your calendar seems like a no-brainer; but what about other events?  Do you put these non appointment events into you calendar?  With smart phone you can virtually remind yourself about anything.  I asked my Othopedic doctor to e-mail me the appointments so that I could just move them into my calendar.  It is so important to put everything in so that you don't miss something important.

This also frees up the mind to not stress over trying to remember every little detail.  I owe this little tidbit of advice to my wife.  She always tells me to just write it down, then I can come back to it later.  BTW she's really smart.

Time's flying again so I need to go, until next time. 

Take care of yourself and keep you schedule straight.