The Bay Homes of Annapolis, Maryland Real Estate Blog http://www.thebayhomes.com The Cockrill Group-Coldwell Banker's #1 Sales Group for Anne Arundel County, MD Mon, 08 May 2017 13:40:13 +0000 en-US hourly 1 https://wordpress.org/?v=4.8.2 24226061 Indecision May Cost More http://www.thebayhomes.com/indecision-may-cost-more/ Mon, 08 May 2017 13:40:13 +0000 http://www.thebayhomes.com/?p=1522 “More has been lost due to indecision than was ever lost to making the wrong decision.” Interest rates have as much effect on housing costs as price and when they are both trending upward, it can be very expensive to wait.TBG1nnfbEE6B5Vp1vyWWmw

There can be some legitimate reasons for postponing a purchase such as needing to save the down payment, improve your credit or waiting to find out about a possible transfer. The problem is that prices and interest rates could, and very likely will, go up in the future.

If the price of $250,000 home went up 5% and the interest rate went from 4.5% to 5.25%, the payments would increase by $176.42. The additional cost over a seven-year period would be close to $15,000.

The questions that indecisive buyers need to ask themselves is “how am I going to feel knowing that if I had not waited, I could have been living in the home for less money?” and “What would I have spent the money on if I didn’t have to make the larger payment?”

Use the Cost of Waiting to Buy calculator to find out how much indecision may be costing you.

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Would-Be to Should-Be http://www.thebayhomes.com/would-be-to-should-be/ Mon, 24 Apr 2017 14:40:29 +0000 http://www.thebayhomes.com/?p=1520 Some would-be buyers have emotional reasons to own a home like having a place of their own where they can raise a family, feel safe and secure and enjoy their friends’ company. Other buyers’ dominant reasons might be financial in nature such as building equity or lowering their cost of housing.
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Regardless of what might be motivating people to want their own home, it is easy to justify that now is a good time to purchase. Let’s look at a $250,000 example using a FHA loan.

The total payment will be about $1,835 dollars a month. If the payment is lower than the rent a person is paying, that should encourage a person to continue investigating.

In this example, when you consider the monthly principal reduction, the monthly appreciation and the tax savings, even with money added for monthly maintenance, the net cost of housing is less than half the total house payment.

Considering all those advantages, the would-be buyer is spending over $1,100 per month more to rent than it would be to own. In a year’s time, they would lose close to $14,000 which is more than the down payment of $8,750 required on this price home.

Most would-be buyers understand that a home is a big investment but they may not understand the advantage of the leverage caused by the low down payment mortgage. The benefits extend beyond a return on the down payment but to the value of the home.

In this example, the $8,750 down payment grows to an equity of $73,546 in seven years based on 2% annual appreciation and normal amortization on a 30-year loan. If you calculated that as a rate of return, you’d be challenged to find anything that could compare with it.

To see what your numbers might look like, check out this Rent vs. Own. If you need any help or have any questions, contact us. Part of our greatest satisfaction is helping would-be buyers understand why they should-be.

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5 Ways to Make Your Old Bathroom New Again http://www.thebayhomes.com/5-ways-to-make-your-old-bathroom-new-again/ Wed, 15 Mar 2017 18:59:11 +0000 http://www.thebayhomes.com/?p=1518 Read the article – http://homevalueplus.info/a/18415475

Bath tub 620x436

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Anne Arundel County Market Update from Coldwell Banker http://www.thebayhomes.com/anne-arundel-county-market-update-from-coldwell-banker/ Thu, 05 Jan 2017 21:42:13 +0000 http://www.thebayhomes.com/?p=1514

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268 Greenleaf Circle, Arnold, MD 21012 http://www.thebayhomes.com/268-greenleaf-circle-arnold-md-21012-2/ Thu, 08 Dec 2016 01:06:59 +0000 http://www.thebayhomes.com/?p=1508 Brightleaf Subdivision, Arnold, MD

Located in the Brightleaf subdivision of Arnold, Maryland near Historic Annapolis, the State Capitol of Maryland is 268 Greenleaf Circle. It is for sale through Coldwell Banker Residential brokerage and is listed for $240,000.

 

 

 

Brightleaf and Hidden Ridge is a modestly priced neighborhood surrounded by more expensive homes. The neighborhood is comprised of duplex town homes Hidden Ridge(Brightleaf) and single family homes (Hidden Ridge). Not far away is Anne Arundel Community College

 

 

 

Jamestown on the MagothyAbutting the Brightleaf subdivision and located on the water is Jamestown, a community of large homes nestled up against Forked Creek, a tributary of the Magothy River. The price range of homes in Jamestown recently has been between $525,000 to $690,000 approximately, according to recent sales recorded in the tax records.

 

 

A more recent subdivision, Canterbury Village has been built and Canterbury Village
is comprised of three level garage townhomes that sell in the price range of $400,000 to $450,000 according to tax records.

 

 

 

Information on the Arnold/Broadneck area public school system can be found online at GreatSchools.

Our subject property is a duplex townhome with 3 levels including an unfinished basement which has a walk out to the fenced back yard. It has three bedrooms and one bath.

The owners have put a lot into getting this property ready to sell. They have just had siding, gutters and downspouts installed this year (2016).

In addition to many other improvements they have made, the owners have also updated the kitchen and bathroom in 2016, as well as freshly painting the house.

You can see a virtual tour online on Vimeo and get more details about the house on MRIShomes.com including contact information in case you would like to make an appointment to see this home.

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268 Greenleaf Circle, Arnold, MD 21012 http://www.thebayhomes.com/268-greenleaf-circle-arnold-md-21012/ Sat, 22 Oct 2016 12:54:12 +0000 http://www.thebayhomes.com/?p=1504 29847601270_0b22374720_oA Three Bedroom Townhouse With Full Basement for $240,000. Call Now to Schedule an Appointment to See This Home Located Just Off College Parkway Near Anne Arundel Community College.

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The Cost of Co-Signing http://www.thebayhomes.com/the-cost-of-co-signing/ Tue, 27 Oct 2015 16:21:24 +0000 http://www.thebayhomes.com/?p=1493 It seems fairly innocuous; a friend or family member wants you to co-sign on a loan because they don’t qualify. They assure that they’ll make the payments; they’re quite convincing and very appreciative. You don’t want to disappoint them and after all, it’s not like it’s going to cost you anything…is it?Caution CoSign.png

Think of it this way. They couldn’t get a loan unless you co-sign for them. If they don’t make the payments, the lender is going to look to you to repay the loan plus late and collection fees. The lender may be able to sue you, file a lien on your home or garnish your wages.

And it’s not just money that you could be losing, it could be your credit too. Co-signing a loan is a contingent liability that could affect your debt-to-income ratio and your ability to borrow.

Co-signing is an obligation to repay the debt if the other signer is unable. You could be out the money and unable to recoup the loss because you don’t have control of the asset. The impact on your credit could take years to recover.

Before you obligate yourself, consider all of the ramifications involved in co-signing a loan for someone.

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Finding the Best Mortgage http://www.thebayhomes.com/finding-the-best-mortgage/ Tue, 27 Oct 2015 16:18:29 +0000 http://www.thebayhomes.com/?p=1491 As rates are inching up but still very affordable, buyers should remember that there is an alternative to a fixed rate mortgage that can provide the lowest cost of housing for the homeowners who understand the parameters. finding best mortgage.jpg

A $300,000 fixed-rate mortgage at 4% has a principal and interest payment of $1,432.25 per month for the entire 30 year term. A 5/1 adjustable mortgage at 3% has a $167.43 lower payment for the first five years and then, can adjust, up or down, based on a predetermined index.

Another interesting fact is that the unpaid balance on the ARM at the end of the first five years is $4,624 lower than the fixed-rate mortgage. The total savings in the first five years on the ARM is $14,669.00.

Adjustable rate mortgages are not the right choice for everyone but buyers should at least consider the options based on their individual situation. It could be an obvious choice for a buyer who is only going to be in the home for five years or less.

Use the ARM Comparison worksheet to see what possible savings you could have based on your actual numbers. A trusted mortgage professional can help you to understand the advantages and disadvantages based on your situation. You need the facts to make the best decision.

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Cut Mortgage Interest http://www.thebayhomes.com/cut-mortgage-interest/ Tue, 27 Oct 2015 16:18:06 +0000 http://www.thebayhomes.com/?p=1489 Making additional payments toward the principal of your mortgage will do three things for the homeowner: save interest, build equity and shorten the term on fixed rate mortgages. 36893374_s.jpg

These things should be beneficial enough to justify the extra payments but another huge advantage is available to those who have private mortgage insurance on their loan. Mortgage insurance rates vary but can range from seventy-five to two hundred dollars a month on a $200,000 mortgage.

Lenders are required to automatically terminate mortgage insurance when the principal balance reaches 78% of the original value of the property. It is important for homeowners to monitor their balance because sometimes lenders may inadvertently fail to terminate the coverage.

Mortgage insurance is a necessary but expensive requirement for many people who are limited to a down payment of less than 20%. Eliminating the need for it can save thousands of dollars over time.

The Consumer Financial Protection Bureau, CFPB, issued a compliance bulletin on August 4, 2015.

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Lower the Rate and Deduct the Interest http://www.thebayhomes.com/lower-the-rate-and-deduct-the-interest/ Wed, 21 Oct 2015 00:27:46 +0000 http://www.thebayhomes.com/?p=1487 A home can easily be a person’s largest personal asset and it can be a powerful tool to increase financial stability also.

Since most mortgages are amortizing, the loan becomes a forced savings account that reduces the unpaid balance with each payment. The equity could be used to improve a homeowner’s financial position involving other loans.iStock_000006029471Medium-250.jpg

While every homeowner recognizes that they can deduct the interest paid on their mortgage, it is surprising how many don’t know that they can write-off the interest on up to $100,000 of home equity debt assuming there is sufficient equity in the home.

The real advantage to a homeowner is that the money borrowed can be used for any purpose and the interest is still deductible. Homeowners could payoff high-interest rate credit card debt or student loans with a considerably lower rate on a mortgage and deduct the interest on the home-equity debt.

Replacing debt with lower rate loans that have deductible interest can be a strategic decision to financial stability and a debt-free environment. A trusted mortgage professional can help you analyze your individual situation to determine if it would be better to refinance with a cash-out first-mortgage or a dedicated home equity loan.

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