Maryland Real Estate Consultant

Canton Home

VIEWS OF THE CITY AND WATER FROM ROOF-TOP SKY DECK/ HANDSOME HARDWOOD FLOORS THROUGHOUT/BRICK FIREPLACE/ BEAUTIFUL BLOCK GLASS WINDOWS/GORGEOUS CUSTOM KITCHEN WITH GRANITE COUNTERS, STAINLESS STEEL APPLIANCES & POT FILLER/ CUSTOM BATHROOMS W/DESIGNER TILE AND FIXTURES/ RECESSED LIGHTING THROUGHOUT/ FINISHED BASEMENT /INTERCOM w/STEREO SYSTEM/DUAL HVAC/CROWN MOULDING.

This home is a must see, it is close to  I-95/70 and 695 and just a few blocks from the water. The seller is also contributing closing cost assistance.

Virtual Tour

This is a very interesting word. The word, "amort," comes from the Latin root, "mort,"

meaning death... Like in the word, "mortuary" or "mortality."

Every time you make a mortgage payment, your loan is amortized, and your debts get closer to its grave.

You track your payments nad diminishing debt on an amortization schedule.

A timetable that shows how each payment is applied to principle and interest, and the remaining balance on the loan.

 What is a Point?

A point is a fee that is one percent of the loan amount. Points may be charged as an origination fee, which is one of the ways the mortgage company gets paid for their services or as a discount point, which is paid to reduce the interest rate on a loan.

For a loan of $200,000 a point will be $2,000.

Points are negotiable. If a seller, offers closing cost help of $10,000 on a $200,000

Loan and the buyer only needs $8,000 to close, it would be wise for the buyer to use the additional $2,000 to pay a discount point to reduce the interest rate on the loan.

When you shop for a loan, evaluate the combination of interest rates and points for each mortgage. Remember, points represent a one-time charge, whereas interest is paid for the entire life of the loan. When possible, you can pay a little more in points and reduce interest payment that you could be making for up to 30 or 40 years.

 For years, the word flipping was construed as an act of evil. The press took the word, ran it into the ground, and gave flipping a horrendous burial. The mere mention of the word to some folks meant that you were a bad person taking advantage of innocent peoples. It is sad, how a few dishonest snake oil salesmen and misguided press can take something that for years was a fine and decent way to make a living into something foul.

Well those days are over, we as investors and real estate agents can rejoice. With the help of shows like Flip This House and numerous other real estate reality real estate shows and book, the general-public has a better understanding of Flipping. Now I do admit, the general-public may not know all the detail and true profits of the TV flips. The shows are very vague when it comes to details and true profits (supplies, labor, commissions,overhead, soft-cost etc...) but they do not see Flipping as evil.  

More often than not, the sellers of these homes are very happy and relieved to get rid of these properties. The investors who buy and fix these homes are hard workers. These rehabbed homes almost always improve the property values of there neighborhoods.

So lets say it all together, flipping is great, flipping helps others and flipping is an honorable job.

Hooray for Flipping! Flip On

If you assume an existing low- interest mortgage, the balance on the mortgage will usually be far less than the purchase price of the house. This means you must come up with a very large down payment unless you can get the owner to finance part of the difference.

Sometimes sellers are willing to take back a second mortgage at a below-market interest rate. I have done this on occasion with my own properties. For example: Selling price of home is $350,000 owner owes $225,000 the seller has $175,000 in equity. You make a full price offer but can only get a loan for $300,000 this is more than enough so that the seller can pay off his mortgage debt but leaves the seller $50,000 short of his asking price. You ask the seller for a $50,000 take-back mortgage and he says yes with a 5% interest payable over 15 years. You get the home you want, the seller is happy plus he is getting a monthly bonus check with interest. Everyone is happy. Just make sure you are able to pay the take-back mortgage.

Do not be afraid to ask, talk with your Realtor and let him or her speak with the seller or seller's agent on your behalf. In some home markets, this may be a doable option. In the Real Estate market you have to be flexible and creative.

I recommend you have the take-back mortgage recorded and if you have any questions talk with your realtor or title attorney.

Until next time,

Happy Home Hunting

Previously I said it was two types of insured mortgages, but actually, there are two main sources to which to obtain insured mortgages and one not so popular source, which are gained through FmHA.

Having private mortgage insurance is one of the conditions and obtaining a mortgage with a low down payment. The cost of private mortgage is added to your monthly mortgage payments.

There are several programs that you can obtain mortgage insurance.

• FHA (Federal Housing Administration) mortgage insurance programs.
• Farmer Home Administration (FmHA) loan guarantee program.
• Veterans Administration (VA)) loan guarantee program.

The government insures FHA and VA loans. To obtain either FHA or VA loans, you simple apply through an approved lender. Both types of loans must meet certain minimum standards. Theses properties usually have stricter home inspection guidelines.

Recently the guidelines have loosened to compete with conventional loans.

The Farmers Home Administration is part of the Unites States Department of Agriculture (USDA) .The FmHa administers direct housing loans insured loans, and grants to low to moderate-income families in rural areas. FmHA loans are available in rural areas or rural towns with populations of 10,000 or less. Rural areas with up to 20,000 people can be included if there are no other mortgage lenders in the area.

Until next time

Happy Home Hunting

It is universal that the lower the down payment, the more money you need to borrow and the more money you put down the less you need to borrow. Mortgage with less money down typically need to have mortgage insurance, usually loans less than 20% down.

Mortgage insurance benefits the lender, not the buyer. Mortgage insurance is a separate insurance; it is not a life or hazard insurance. It covers the lender in case of foreclosure. Mortgages obtained with little or no money down lenders, take a much bigger risk of losing money. Claims for mortgage insurance are not paid to the borrower, but mortgage insurance benefits the borrower by making it possible for lenders to offer loans with less money up -front. These loans would not be available with out mortgage insurance.

There are two types of Insured Mortgages. I will go into detail about these insurance options next time.

What is a Mortgage Note & Mortgage?

The mortgage note is the document that spells out the terms and condition of the loan.  This document is a promise to repay the loan. The mortgage note sometimes called a promissory note. The note goes into details of the loan such as monthly payment, number of payments, amount due, and interest type.

The mortgage itself is a separate document, which you sign at closing. It states that the home itself is security for the loan. Some states sign a deed of trust instead of a mortgage... they both serve the same purpose.

Until next time

VIEWS OF THE CITY AND WATER FROM-ROOF TOP SKY DECK/ HANDSOME HARDWOOD FLOORS THRU-OUT/BRICK FIREPLACE/BEAUTIFUL BLOCK GLASS WINDOWS/GORGEOUS CUSTOM KITCHEN WITH GRANITE COUNTERS, STAINLESS STEEL APPLINACES & POT FILLER/CUSTOM BATHS W/DESIGNER TILE AND FIXTURES/ RECESSED LIGHTING THROUGHOUT/ FINISHED BASEMENT /INTERCOM w/STEREO SYSTEM/DUAL HVAC/CROWN MOULDING.$2K SELL BONUS/ THIS IS LUXURY LUXURY LIVING.

$495,462

  Complete Rehab

         Custom Kichen

   Wood Buring Fireplace in the Front Room.

 Spiral Steps to Sky Deck

SKY DECK VIEW

For those who would like to know a little more about the Canton area of Baltimore Maryland check out the link below. Many of these homes still have Formstone exterior. Many of the homes have been repointed with brick. When you have the chance come on down and visit. Canton is part of Highlandtown and a wonderful area for the family and kids. I love Canton!

Canton

Frank Harris