2nd Home instead of College Dorm

Posted on November 1, 2011 by John Cannata
If you’ve turned on the radio or TV recently, you’ve heard about the rising costs of college tuition and room and board expenses.  Even with financial aid available for today’s college-bound students, cash-strapped families are looking for options.  Some are choosing to refinance their mortgages (Texas Cashout Refinance), while others are opting to buy second homes.

Yes, you read that right.  Families are saving money by buying second homes for their college kids. While it may seem ludicrous at first, buying a second home can actually help you save money in the long term. How? Monthly mortgage payments may be less expensive than college room and board expenses.
Benefits include:

  • Some lenders have loan programs that provide the most benefit in the first 4-5 years of ownership – just in time for your kids to graduate.
  • Interest on a second home is tax deductible.
  • Owning a second home gives you an opportunity to build more equity and increase your net worth.
  • Extra space or rooms in the home can be rented out for additional income.
More and more families are buying second homes to reduce the increasing financial burden of sending their kids to college, and so can you.  Give me a call at (214) 728-0449 today, and let me show you how my knowledge and experience as a mortgage professional can help.  You and your wallet will feel much better.
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Renting vs Owning – The Big Debate

Posted on October 28, 2011 by John Cannata

Renting vs Owning – The Big Debate

There comes a time in everyone’s life where they have to make the ultimate decision and decide whether to buy and own their own home or continue to rent. It’s a huge decision as both have notable benefits and disadvantages and it is not one to be taken lightly. So lets have a look at these advantages and disadvantages to see which option is really the best option for you.

Owning your own home is the traditional dream that practically everyone has, especially when it comes to starting a family. It gives you a feeling that you have accomplished one of your goals and that you are both financially and emotionally secure as well as giving you a great sense of community. But is it the right decision for you? Lets have a quick look at the advantages and disadvantages of buying and owning your own home.

Advantages:

  • Set your own rules
  • Sense of security
  • A home is a great investment (long term, not for a quick turnaround, especially in todays market)
  • Get various sort of tax rebates and deductions
  • Repayment is usually the same or even lower than it would cost to rent – see example of my rent vs own comparison
  • You build equiry over time
  • Improve your credit score if you need a loan in the future

Disadvantages:

  • You are liable for any accidents and injuries on your property
  • You are liable for any damage to your neighbors house if stemmed from your property – for example a tree branch falling over the fence and damaging something in your neighbors yard.
  • Responsible for any maintenance in, on, or around your home
  • No longer can you just pack up your things and leave when you want. You’ll need to list and sell your home
  • Large loan responsibility even if you are having financial hardship
  • Required to have homeowners insurance to cover damages to the property
  • Responsible for property taxes
  • Requires an upfront down payment (VA and USDA are 100% financing products, if you qualify)

Renting is something most of us start out doing and many people are comfortable doing it all their lives. There are many advantages to renting a home but there are also a few disadvantages. Let’s have a look at them.

Advantages:

  • You can up and leave as soon as your lease it up
  • If you run into a financial hardship, you can move again
  • Little or no responsibility for maintenance
  • Sometimes utilities are included in the rent cost
  • Sometimes you have free use of amenities such as laundry, pool, and other sorts of actualities

Disadvantages:

  • Limited or no freedom to what you can do with the place (paint, design, build, etc)
  • Rent MAY increase
  • No tax deductions
  • At risk of being evicted
  • The house could be sold and you can be asked to leave
  • Could have restrictions on certain things like noise and pets
  • Could have restrictions on the number of members living in the house/apartment
  • Rent is not going into a productive investment for you

As you can see clearly there are many advantages and disadvantages to owning your own home and renting. Some have advantages and disadvantages the other doesn’t have, but both can be a comfortable way to live. When it really comes down to it you have to choose the one that suits you’re financial, emotional and lifestyle needs at this time. You have to take your future into account as well, will you want to be tied down and take responsibility for a huge investment or will you prefer the freeness of being able to move whenever you please?  It can be quite a hard decision to make and it is one that needs a lot of time and thought before you proceed to take any further steps.

When you call me, I take the time to evaluate your current financial status and together we can compare the pros and cons to owning a home. In addition, I take the time to complete a Total Cost Analysis. Together, we will find the program that works best for you and your family.

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Do I need an Home Inspection for my Bryan/College Station Texas Home?

Posted on October 7, 2011 by John Cannata

I am not surprised when a Home Buyer asks me ‘Do I really need a home inspection?‘. After all, this may be their first home so they don’t know what expenses can be avoided and what is a must.

My answer to the question is always – ABSOLUTELY! The buyer should always get an inspection done on a home before moving forward with the purchase. And no, the appraiser (even on FHA loans) does not inspect the home as in-depth as a Home Inspector.

Imagine moving into your home in the middle of winter, only to find out that the furnace doesn’t work. Replacing a 40 year old furnace is far more costly than hiring a home inspector. Buying a home is likely the largest investment you’ll ever make. The buyer needs to be assured they are investing in a quality home.

A Home Inspector will examine the following (and much more):

  • Heating System
  • Central Air Conditioning System
  • Interior Plumbing
  • Electrical System
  • Roof and Attic
  • Insulation
  • Walls, Ceilings, and Floors
  • Windows and Doors
  • Foundation
  • Basement (not very popular in Bryan/College Station Texas)
  • Overall Structure of the Home

The BEST part of having a home inspection before you purchase a home is this fact; if there are significant problems, you have the ability to walk away from the deal. However, if you purchase a home without a thorough inspection, you may find yourself paying more money then you should.

If you need help finding a Home Inspector in Bryan/College Station Texas or the surrounding areas, feel free to give us a call.

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Creating the Elegance and Style of a Luxury Hotel in Your Master Bedroom

Posted on September 23, 2011 by Candace Huber


Wouldn’t you love to create the feeling of a luxury hotel room from your favorite vacation destination in your own home? You’d enjoy it all year long – without the jet lag! But how do you go about getting that sense of luxury and style in your own room?

Whether you’ve stayed at a romantic suite in Paris, an ultra-modern hotel in New York or a beach cabana in Hawaii, all these rooms have common design elements.

First, the bed has PRESENCE- it takes center stage. You can accomplish this in your bedroom with either a beautifully-padded or carved headboard or a romantically-draped canopy. And remember how soft and cozy the bed FELT? The linens were most likely very high thread-count and the mattress was supportive but soft. Invest in high-quality, high thread-count linens and a soft supportive mattress and you will feel as if you are sleeping on a cloud every night!

The Venetian, Las Vegas, Nevada

You also want to make sure your bedspread or comforter is soft and made of a beautiful fabric that embodies your room’s style. A comfortable seating area is another hallmark of the luxury hotel room. Carve out a niche in your bedroom with two plush side chairs or an overstuffed love seat for relaxing at the end of a busy day or sipping that early-morning coffee.

Don’t have room for extra seating? Place a bench or a small chaise lounge at the foot of your bed or under your window. You’ll also need a small coffee table or side table for drinks, reading material and a lamp. The lighting in most luxury hotel rooms is soft and low, creating a cozy and elegant atmosphere. Notice how there is no centralized overhead light?

Hotel rooms typically have bedside lamps at the correct height for reading as well as in-ceiling halogen lighting to spot-light beautiful artwork or the bed itself. Installing a dimmer will create that same moody, romantic atmosphere in your own room.

Luxury hotels generally have layered window treatments which allow complete sunlight blockage for sleeping in as well as light filtering during the day while maintaining privacy. From simple shutters to elaborate layered draperies, window treatments can help block UV rays which can fade your furniture, fabrics and carpeting. They also enhance the style of the room and should coordinate with your bedding.

Incorporate these elements into your master bedroom, and you will be on your way to creating the luxury hotel-feel in your own home. Just don’t be disappointed when your family members don’t respond to your requests for room service!

Candace Huber is an interior designer and owner of Casa Bella Interiors, an interior design studio serving the greater Brazos Valley area.  She specializes in custom window treatments and soft goods and custom design plans.  979.690.8237    www.casabella.us info@casabella.us

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Texas Interest Only Loans

Posted on September 20, 2011 by John Cannata
Interest-only loans in Texas are still around. Even though they are not as popular as they once were, they do still exist.
 
Over the past few years, they have been the topic of conversation. Many homeowners were placed into these programs without being told exactly what type of program that it is or without completely understanding them when they agreed to them. There are certainly benefits of Interest Only Loans when purchasing a home or refinancing, but there are also risks associated with them. 
 
* Please note that this product is available to anyone that qualifies but personally, I only recommend this program for someone that has a fixed monthly income with a potential of receiving a monthly or quarterly bonus. Or, someone that is paid on commission only.
 
Here are just a few of the benefits of interest-only loans:
 
- Smaller interest-only payments give borrowers with uneven income a greater degree of flexibility. The savings generated from interest-only loans versus traditional mortgages give borrowers greater control over their finances, freeing up more money for use in investments or catching up on other bills.
- Smaller monthly payments during the initial interest-only term allows borrowers to afford more home for the same amount of money, or less. Depending on your income, this could mean an increase to your purchasing power by $5,000-$30,000.
- Interest-only payments made during the initial loan term are entirely tax deductible.
 

The risks of interest-only loans:
 
- If home prices fall, borrowers could end up owing more money on a home than it’s actually worth. Unless the borrower makes payments against the principal, the home builds no equity aside from annual appreciation.
- After the initial interest-only period, the principal balance can cause monthly payments to skyrocket, especially if interest rates have increased.
- The minimum monthly payment option (available on some interest-only loans) doesn’t cover the total interest accrued for a given month.  The difference is tacked onto the balance, increasing the principal balance, which results in negative amortization. A negative amortization can erode existing equity already built in a home.
Understanding some of the benefits and risks associated with interest-only loans is imperative when searching for a mortgage that fits your needs.  If you’re looking into refinancing your mortgage or considering buying a home, you need a professional who will take the time to identify your financial goals, and who has the experience and the resources to help you achieve them.
 
Do not move forward with a Loan Originator that is trying to fit you into a specific loan program without telling you the pros and cons of that program. Ask questions to understand your mortgage options and why one program may be better than nother. There are many programs and options available, but not all of them will help you achieve your financial goals.
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Does your home have enough fire insurance coverage?

Posted on September 7, 2011 by Sabrina Piel

During this time of high fire activity in Texas, we are asked about different lines of coverage contained in a homeowners policy.

Loss of Use (also called Additional Living Expense). Suppose your home is damaged by a fire, and you can not live there while the repairs are being made.  Many policies provide money for the expenses you would not normally incur, such as renting a motel room or apartment.  Your kitchen is no longer at your disposal, so you are forced to eat at restaurants.  You have to take your clothes to the laundry instead of cleaning them in your own washer and dryer.  These are some examples of LOU or ALE.  Be sure your policy has this coverage, and make sure you have enough of it.  If your area lost 500 homes, how long would it take for you to get someone out to repair your home, even if it was only minor damage?

Replacement Cost coverage. Following a loss, such as fire, most homeowners policies will give you money for your belongings destroyed.  They will pay you for what the item was worth at the time of the fire.  A five year old TV might not have much value if sold at a garage sale.  Used clothes in a resale shop sell for a fraction of their cost new.  The example of the value given to your TV and your clothes are what insurance folk call Actual Cash Value (ACV).  Better homeowners policies will allow you to buy an option (or endorsement) call Replacement Cost.  With this option, the insurance company will no longer pay you the depreciated value for the items lost in the fire, but will give you enough money to actually replace the item with a new equivalent.  (There are limits to this coverage, such as; you can’t go out and buy a 42” 3D TV if the one lost in the fire was a 13” black and white.  Look up the insurance term- indemnification.)

As always, don’t assume you have coverage on your policy only to find out after a fire that you didn’t. Talk with your agent.  He or she has knowledge on the policies they sell, and can lead you to select the right coverage for your needs.  Also, this information is generic, and does not represent any particular policy.  Read your policy, and if you don’t understand parts of it, talk with your agent.  The only good policy is one that works for you when you need it to.



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Posted on July 28, 2011 by James Kim

If you’re looking to move right now, you have to be smart. With the economy the way it is, you have to carefully consider what your options are and take into account things like the job market where you’re going to move along with what the cost of living is like. It wouldn’t do to move somewhere where you just can’t find a job when, if you’d searched for Austin real estate instead, you’d be employed and shelling out way less day-by-day, after all!

Job Market

Smart:

  • Minnesota
  • Illinois
  • Texas

Not:

  • New Hampshire
  • West Virginia
  • New Mexico
  • Hawaii

Smart thing? Moving to a place that has a strong job market so that you can get employed as soon as possible. The cities above are some of the best and worst of the bunch. But how is this measured? Well, if you look at the number of large companies in any one area you can get an idea of how strong the economy is there as well as how many places you’ll be able to apply to down the line. Looking through the lists, you’ll see that the “Nots” have no Fortune 500 companies at all. On the other hand, Minnesota, Illinois and Texas have 21, 31 and 57 of those companies, respectively. Texas is the smartest choice here, as its 57 ties it for first with California without having to deal with all of the high cost of living (which you can check out next).

Cost of Living

Smart:

  • Texas
  • The Midwest

Not:

  • California
  • Hawaii

A not so smart thing? Choosing one of the most expensive states in the country to move to when the economy is not so great. In other words, steer away from Hawaii and California, which are tied as the most expensive state. The smart choice here is to move someplace like the Midwest, which has a low cost of living across the board. Why? As Robert Helsley, a professor at UC Berkeley, tells Forbes, “Midwestern cities in general tend to have a relatively low cost of living” because they’re all landlocked, which isn’t exactly a feature people pay extra for. Texas is a good bet, too, as it also has a low cost of living throughout the state even though it can’t match the Midwest overall.

If you’re looking for a place to move to in this economy, your smart choice is probably Texas, which combines a strong job market with a fairly low cost of living. There are other smart choices, too, like many places in the Midwest, which have some of the lowest costs of living in the country (which Illinois combines with a healthy corporate presence). As long as you stay away from choices like the “Nots,” you can find a great place to move regardless of your economic situation.

James Kim writes for Austin Real Estate service Homecity.com. HomeCity combines powerful online Austin MLS search technology and other online tools with personalized real estate services to provide clients with the knowledge they need to make the right buying and selling decisions.

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FHA Mortgages for 620 FICO… Available at Supreme Lending

Posted on June 24, 2011 by John Cannata

Supreme Lending is now offering FHA Home Loans in Bryan / College Station Texas to borrowers with a Credit Score down to 620.

There are only a few lenders in Bryan / College Station that are offering FHA Home Loans for Home Buyers with a credit score down to 620. Many are offering the FHA home loan products for home buyers and homeowners with scores of 640 or above.

Supreme Lending is now offering FHA Mortgages to Home Buyers in BCS Texas and Homeowners looking to refinance their Texas home, with a Credit Score (FICO) down to 620.

If you have a FICO score that is below 620, no problem. Let’s talk about your credit situation and see what steps can be taken to put you back on track and increase your score, so that in a few short months you’ll be in a position to purchase (or refinance) your home.

Have a few questions? Call us so we can help you.

Other helpful reads about Your Credit Score and/or Getting Pre-Approved to Buy a Texas Home.

I look forward to helping you buy YOUR Texas Home in Bryan or College Station!

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Gray – The “New” Neutral

Posted on May 22, 2011 by Candace Huber

Gray – The “New” Neutral

Candace Huber – Casa Bella Interiors

I’ve decided to write this blog about the much-feared but always-revered –drum roll please – topic of COLOR.

Yes, that dirty decorating word that seems to strike fear in the heart of all but the most adventurous homeowner, yet remains the most important tool in the decorating tool box! One color that’s been popping up all over lately is gray.

While it may sound like a cold color to embrace in your home, grays on the warmer end of the spectrum are actually very livable. And they are perfect for use in our climate, particularly with our hot summers. Research has proven that being in a cooler-hued room makes you feel cooler than a warmer-toned one, even when the actual temperatures of the two rooms are the same.

Now I’m not saying that when it’s 101 degrees outside in August, you’ll feel cool as a cucumber, but it will make a difference! Another advantage of gray is that it can be a great neutral backdrop for many brighter or deeper colors such as blues and golds. I’d call it the “new” neutral. It’s a great color to use in a new home because you can paint the hallways and main living areas and so many other colors will go with it. It is also a great neutral alternative to the tried-and-true camel-beige that has been popular in new construction for so many years now.

Gray can also be very soft and soothing, creating almost a cocoon-like coziness in the room. Take a look at this cover of Traditional Home magazine. The space is elegant and definitely on the cool side, but it doesn’t feel cold because it is warmed with rich browns on the hardwood floors, the table and chair legs and the stair runner. Even though the room colors are predominantly pale and muted, notice how that shot of blue on the chairs really wakes things up? You don’t want people going to sleep during dinner! In this room, gray is the soothing neutral background color, while the blue chairs add that pop of color to keep things interesting.

Still not convinced that gray would work in your home? Start small- like a guest bedroom or powder room. These are great rooms to try out new colors or to be a little more daring than usual as they are used less often. Who knows, you could try a gray color scheme in your powder room and like it so much you end up doing it in the whole house!

So I’m encouraging you to get out of your decorating rut and try something new, you may find it is just what you need to help cool you off during those dog days of summer!

Candace Huber is an interior designer and owner of Casa Bella Interiors, an interior design studio serving the greater Brazos Valley area.  As a certified Dewey Color Consultant, she can help you pick that perfect shade of gray!

979.690.8237    www.casabella.us info@casabella.us

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USDA Rural Development Loans Will Have Monthly Mortgage Insurance starting October 1, 2011

Posted on May 17, 2011 by John Cannata

USDA Will Have Monthly Mortgage Insurance

USDA Rural Development and its loan program were designed to help improve the economy and quality of life throughout rural America. The program continues to remain a wonderful option for qualifying homebuyers, with zero down payment required.

But a change is coming!

Beginning October 1, 2011, for the first time in the history of USDA, the Single Housing Guaranteed Loan Program will have an annual fee. This fee will be calculated based on the guaranteed loan amount and based on the average annual scheduled unpaid principal balance for the life of the loan.

If you’re thinking of purchasing a home and you’re wondering if you may qualify for a USDA loan, give me a call right away. Home loan rates are still very attractive. Let’s see if this program is right for you…before the October 1 fee begins.

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