Monday, April 24, 2017

Would-Be to Should-Be

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. YBXRaYAvAkyisi7x4yxDZg 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. R8nQxfe8T0Wuat8uKStGmw

Wednesday, December 7, 2016

268 Greenleaf Circle, Arnold, MD 21012


Located in the Brightleaf subdivision of Arnold, Maryland near Historic Annapolis, the State Capital 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 (Brightleaf) and single family homes (Hidden Ridge). Not far away is Anne Arundel Community College 







Abutting 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 is comprised of garbage town homes 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 Great Schools


Our subject property is a duplex town home with 3 levels including an unfinished basement which 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.
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

Saturday, November 12, 2016

160 N. Lake Drive Stevensville, MD 21666

Property Site: http://tour.circlepix.com/home/E8H2HX/160-N-Lake-Drive-Stevensville-MD-QA9797000
Bedrooms: 4
Bathrooms: 3
Price: $329,900

For more information about this property, please contact Charles Kraus at 410-224-2200 or ckraus@cbmove.com. You can also text 3992979 to 67299.


See more listings at: http://ckraus.cbintouch.com/


MLS ID: QA9797000

https://www.facebook.com/10209675179930940 https://www.twitter.com/charleskraus

Friday, November 11, 2016

268 Greenleaf Circle Arnold, MD 21012

Property Site: http://tour.circlepix.com/home/VB2X68/268-Greenleaf-Circle-Arnold-MD-AA9769235
Bedrooms: 3
Bathrooms: 1
Price: $240,000

For more information about this property, please contact Charles Kraus at 410-224-2200 or ckraus@cbmove.com. You can also text 3926581 to 67299.


See more listings at: http://ckraus.cbintouch.com/


MLS ID: AA9769235

https://www.facebook.com/10209675179930940 https://www.twitter.com/charleskraus

5 Park Place #310 Annapolis, MD 21401

Property Site: http://tour.circlepix.com/home/MW32U7/5-Park-Place-%23310-Annapolis-MD-AA9778726
Bedrooms: 1
Bathrooms: 1
Price: $334,900

For more information about this property, please contact Charles Kraus at 410-224-2200 or ckraus@cbmove.com. You can also text 3921809 to 67299.


See more listings at: http://ckraus.cbintouch.com/


MLS ID: AA9778726

https://www.facebook.com/10209675179930940 https://www.twitter.com/charleskraus

Tuesday, October 27, 2015

It's hard to Imagine

With mortgage rates below 5% since 2009, you would think any homeowner who should refinance would have already. However, it is estimated, there are approximately 6.5 million borrowers who would benefit with significant monthly savings by refinancing. iStock_000064771413_300.jpg Rodney Anderson of Supreme Lending, on his weekly radio program, described a recent pipeline meeting where they reviewed every pending mortgage application his company was processing. They had seven refinancing applicants whose current mortgage was over 9% and twelve with a rate between 7% and 9%. “Some 550,000 American homeowners with a mortgage could save $500 or more each month by refinancing at today’s rates. Over three million could save at least $200 per month.” said Ben Graboske, CTO with Black Knight Financial Services. Getting a lower interest rate should be reason enough but eliminating the mortgage insurance should make the decision a no brainer. With increased home values, the loan-to-value ratio may no longer require mortgage insurance which would add additional savings. Homeowners need solid information about what their home is worth and whether they’d benefit from refinancing. The most reliable solution is to talk with a qualified mortgage professional. The internet is a great place for generalized info but each person's situation is unique. Call if you'd like a recommendation of a trusted mortgage professional or would like to know what your home is worth.

What is Stopping You?

The majority of tenants say they would like to own a home but continue to pay rent and missing out on financial and emotional advantages. There seems to still be a lot of misinformation in the marketplace. Questions2.jpg There are a number of programs for low or no down payment options. Veterans can get into a home with no down payment or closing costs. In qualifying areas, USDA has zero down payment programs. FHA requires 3.5% down payment and there are conventional programs for as little as 3% and 5% down. People with credit issues need expert opinions about their specific situation. Borrowers with bankruptcies or foreclosures may be eligible to purchase again after certain periods of time. There are short-term fixes for some types of credit problems. There is an extended list of individual issues that a skilled mortgage professional may be able to overcome. Most tenants realize considerably lower cost of housing by owning once the appreciation, amortization and tax savings are considered. The savings in the first year alone could easily be more than the down payment required. Plug in your own numbers in a Rent vs. Own to see what your real cost of housing may be. Contact us for a recommendation of a mortgage professional who can give you accurate information about your situation. Rent vs Own InTouch 7-15.png

Build Equity Faster

Equity is an asset and an appreciating home is an investment. While some people have resolved themselves that a mortgage payment is a normal part of life, others have set goals to get their home paid for as soon as possible. There are several strategies that will work but they all require persistent vigilance. 44969574_250.jpg A shorter term mortgage such as 20, 15 or even 10 years will not only pay off sooner, it will generally have a lower interest rate. A recent comparison at Freddie Mac’s Primary Mortgage Market Survey showed a 30 year fixed-rate mortgage at 4.04% compared to a 15 year fixed-rate at 3.20%. The fees for the shorter term were even .1% less. The shorter term with the lower rate would have a higher payment but some people consider it forced savings. Additional principal contributions to any length fixed-rate mortgage will save interest, build equity and shorten the term of the loan. Some homeowners may apply lump sums at various times during the year such as when bonuses are paid or a tax refund is received. Other owners might increase their payment by $100, $200 or more each month. Setting the increased payment through electronic banking would insure that you consistently make the extra amount. Bi-weekly payments make 26 half-payments in a year which equals 13 full-payments. Because of the frequency, it reduces the interest that is due. This might work well for borrowers who are paid every two weeks but could present cash flow problems for those who are paid on schedules that don’t coincide. Making one extra payment a year will have almost the same effect as a bi-weekly payment. The 13th payment would be completely applied to principal. Before embarking on one of these strategies, it would be wise to verify with your lender that it complies with their policies. Check out the Equity Accelerator to see how it could affect your loan.