Category Archives: Mortgages

Mortgages

From the inbox: are you joking about $780 up front to buy a home?

Short answer: I have fun with but rarely joke when it comes to real estate (this is serious business!).  Nope, not joking, you can often get into a home for as little as $780 in Colorado Springs.

Longer answer: there are three costs to a home buyer generally in the purchase process.

1. Earnest money: this is “good faith” money a buyer puts up to compensate the seller if they (the buyer) breaches contract for a non-protected reason.  I’ve had a lot of success w/$500 earnest money in town.  Note: coordinate with your lender but you can often get this money back at closing.

2. Inspection costs: a home inspection costs about $280. This is a sunk cost; even if you choose not to continue with the purchase, this isn’t reimbursable in the normal course of a purchase.

3. Appraisal: there is an appraisal cost that some lenders will charge upfront, others charge as part of the loan costs.

In sum, it is entirely possible to buy a home for an upfront cost of $780-1180, depending on the lender and the earnest money required…and that earnest money can often come back to you.

Questions, please give me a call! If you’re looking to buy or sell in Colorado Springs or Denver, I’d be honored to earn your business.

Facebook.com/robthompsonrealtor

Mortgages, Short Sales

From the inbox: what does it mean to be underwater?

Good question! Short answer: underwater is an industry term meaning you owe more on a home than it will sell for.

Interesting sidenote: I cleaned foreclosures in Las Vegas on the side and saw two homes where the homeowners turned on the water taps and walked away from the home.  In both cases, it was days before someone gained access to the property to shut it off.  They wanted to make the home literally “under water.”

DON’T DO THIS.  If only for the guy that comes in later, please don’t do this.

Longer answer: in an underwater situation, one may feel there is not “out.”  This is not the case; walking away from a home is not the nuclear option people think it is.  In some cases, the bank may be able to pursue you for a deficiency judgement for years afterwards.

The better answer is often a short sale, where you sale the home for less than the amount owed but the lender consents to the sale and forgives the remaining debt.

In other cases, we may be able to work within your existing equity to make a sale happen.

Questions?  Give me a ring at 719-440-6626!

Mortgages

From the inbox: what’s the deal with this 1.75% refinance offer I just received?

Good question!  First, this is not legal advice, always consult a licensed and insured professional before making any decisions.  However, ALWAYS read the fine print.

In this case, with mortgage rates in the 4% range at the time of this writing, a 1.75% rate seems way too good to be true.

How can they do it then?

It’s likely an ARM (Adjustable Rate Mortgage), or a mortgage that has a variable percentage rate that tracks an index.  Or, it may have a balloon payment due at the end of a certain time period (e.g., a $50K payment due in one year, five year, etc.)

If it sounds to good to be true, it may be.

Questions, don’t hesitate to ask!

Mortgages

VA loans rock

If you are entitled to a VA loan, you should know these are an incredible entitlement. The loan allows you to buy a home with no money down at market rates. How much home can you afford? This calculator can help you decide.

VA Loan Calculator

If you’re looking to buy or sell in the Colorado Springs area, please give Rob a call at 719-440-6626.

Mortgages

New regulations coming for homebuyers soon…

…looking to buy soon? It may behoove you to lock that loan in this year. Talk to your lender or give me a ring and I can give you the contact # of a good guy I know.

Looking to buy or sell in Colorado Springs? Please give me a chance to earn your business. Call Rob @ 719-440-6626!

Colorado Springs, Economy, Mortgages, New Homes

Colorado Springs in top 35 cities to live…

According to the “Livability Index.” Personally, I think it’s #1!

Whether it’s 35th or 1st, if you’re looking to buy or sell a home in Colorado Springs, please call Rob at 719-440-6626!

Colorado Springs, Home Values, Interest rates, Mortgages

Colorado Springs sees 16 months increased prices in homes…

…this is a great place to live, as evidenced by the sixteen month rise in home prices and sales we’ve seen in our city.

This is good news for sellers. Additionally, combined with still near historically low mortgage rates, buyers who are looking to move into the city can still get good deals!

Looking to buy or sell in Colorado Springs, please give Rob a call at 719-440-6626!

Economy, Mortgages

Ignoring the economic bogeyman…

…if you’re like me, you’re probably very worried about the state of the economy. Further (if you’re like me), you’re probably inundated with information saying the economy is on the upswing…and downswing. I get emails and see headlines every day that alternate from “FINANCIAL ARMAGEDDON IS UPON US!” to “Housing surging! Economy is improving!”

Who do we believe?

I propose: neither. Follow the advice highlighted in this article and plan according to your finances and expectations. Don’t overleverage yourself; buy what you can afford.

We bought the home we live in now with my military pension in mind. Our threshold had to be $XXXX. When the numbers came in initially at $XXX7, I considered walking away from the deal. That’s how committed I was to making sure we didn’t overleverage.

Colorado Springs, Mortgages

Should a homeowner price their home high or low?

Should I list my home high or low? That’s an interesting question and one whose answer seems to center around “strategy”. This WSJ article explores both sides of the high vs. low pricing. One thing it doesn’t mention that’s relevant in some markets right now is the appraised value of the home. We must consider what the home will appraise for; if a home appraises low, a high offer won’t mean much.