“Every day you see one more card You take it on faith, you take it to the heart The waiting is the hardest part” —”The Waiting“; Tom Petty, lyrics Buyers have certainly been known to wait ” sometimes for years ” for the right house. At least to Realtors, however, it is Sellers who seem to...Read More
Traps for the Unwary in an Environment of Rising Interest Rates In the vast majority of Financing Addenda I’ve seen — along with the Inspection Contingency, the two critical Addenda in a Purchase Agreement — the Buyer’s agent fills in the blank above with the word “market.” When rates are stable or falling . . . no problem....Read More
“I Know What You Meant” Department: Contingent Offer Confusion Residential real estate is full of confusing, non-intuitive (if not counter-intuitive) terms. Like, the Realtor that the industry calls “the Selling agent,” once a deal closes, actually represents the Buyer (the agent representing the Seller is known as “the listing agent”). See, “Quick! Who Does the...Read More
The Opposite of Buying Down Rates Wait a second! Isn’t borrowers’ goal to pay the lowest interest rate they can on their mortgage? Yes, but — especially for first-time home Buyers — there’s the added consideration of closing costs. On a $200,000 home, a typical amount would be 3%, or $6,000. Conserving Cash A popular...Read More
Portfolio vs. Securitized Mortgages OK, so that’s not exactly how the Alexander Graham Bell quote (headline above) goes. But, it applies — sometimes — to mortgages. Specifically, there are numerous situations where what’s called a conforming, “conventional” loan — intended to be re-sold (securitized) on the secondary market — isn’t feasible, but a “portfolio” loan held by the...Read More
Jumbo vs. Conforming Loans How do you get a $560k house for the cost of a $525k house? No, it has nothing to do with negotiation, bargain hunting, or otherwise outmaneuvering home sellers. Rather, it’s strictly a financing play. Namely, by moving up just a little in price, Buyers today can avail themselves of cheaper jumbo loans (over $417k),...Read More
