It’s important to calculate how long it will take to break even on the costs of refinancing your mortgage. But don’t overlook other factors that also influence whether you should refinance and the type of loan to select.

The most fundamental consideration in whether a homeowner should refinance an existing mortgage is the break-even point, which represents how soon the cost of the refinance will be recaptured through lower monthly payments. But while the break-even point is easy enough to calculate, other factors may also influence your decision and, if it’s a go, the type of loan you’ll select. Read the rest of this entry »

Article from: Thursday, December 18, 2008,
The Business Journal of Milwaukee – by Bryant Ruiz Switzky Baltimore Business Journal

Thirty-year fixed-rate mortgages interest rates fell to their lowest level on record, according to Freddie Mac’s Primary Mortgage Market survey released Thursday.

The national average interest rate for 30-year fixed-rate mortgages was 5.19 percent for the week ending Dec. 18, the lowest level since McLean, Va.-based Freddie Mac (NYSE: FRE) began the survey in 1971.

Rates were down from last week when it averaged 5.47 percent. A year ago, the mortgages averaged 6.14 percent.

The 15-year fixed-rate mortgage averaged 4.92 percent, down from 5.2 percent last week and 5.79 percent a year ago.

The 15-year rates have not been lower since April 1, 2004, when they averaged 4.84 percent.

“The decline [in 30-year fixed-rate mortgages] was supported by the Federal Reserve announcement on December 16th, when it cut the federal funds target to a record low and stated it stood ready to expand its purchases of mortgage-related assets as conditions warrant,” said Frank Nothaft, Freddie Mac vice president and chief economist in a statement.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.60 percent this week, down from last week when it averaged 5.82 percent. A year ago, the 5-year ARM averaged 5.90 percent.

One-year Treasury-indexed ARMs averaged 4.94 percent this week, down from last week when it averaged 5.09 percent. At this time last year, the 1-year ARM averaged 5.51 percent.

If you are ready to buy, don’t forget about our Buyer CASH Bonus – www.DuffyRealtyofAtlanta.com

Find Home Buyers Tips and other Real Estate Resources HERE

Foreclosures have become a dirty word to some and a profit word to others. Here is what you need to know about foreclosures whether you are a buyer or a seller.

For Sellers:

Rule 1 – Stand Tall – Just because you are selling your home and your neighborhood has foreclosures in it, does not mean that you can not sell your home. A foreclosure has a different appeal than a home that is lived in or still has a sane owner. Foreclosures look different and feel different and thus are not for everyone.

Rule 2 – Look Your Best – Foreclosures are often in shambles and the maintenance crews that are paid to work on the properties really have no overseer working to make sure that the work is done to perfection like you would as the owner of the property. Manicure and perfect your property and you will make a quicker connection to a buyer than the foreclosure will.

Rule 3 – Price High – Don’t price your property based on a foreclosure price. Remain as a “not distressed sale” and you will win by getting your price.

For Buyers:

Rule 1 – Be Patient – Banks who own these properties don’t really care what your timeframe is. It could be weeks before you hear that they have sold to someone else so, if time is of the essence for you, you don’t need to buy a foreclosure in most instances.

Rule 2 – Inspect and Inspect Again – It is critical that you understand what condition the property is in. Most people in foreclosure didn’t just get to foreclosure the month that they were kicked out. It is a result of not having money. So, most likely they did not maintain the property whether the problem was big or small. Although most banks will not do the work to get the house repaired, at least you will know whether or not you are getting such a great deal.

Rule 3 – Get A Warranty – Pay for your own home warranty at the time of the purchase. This will allow you to at least budget for the unknown.

Rule 4 – Don’t Pay Attention – Many times buyers who plan to live in the home are shocked by the stories about the previous owners when they meet the neighbors. If you are not going to go to the neighbors first, ignore the stories.

This is from John Adam’s Newsletter find John who is a great, positive resource for the real estate industry at www.johnadams.com

Are You A Middle Class Millionaire?

According to a recent article from MarketWatch, a new economic class — the so-called “middle-class millionaires” — now accounts for nearly 10% of the U.S. population. Defined as being those with a net worth of between $1 million and $10 million, these individuals have some interesting characteristics. For example…

» The average middle-class millionaire works 70 hours per week.

» They are 5x more likely than the “average” worker to say they are always available for work.

» 89% believe that anyone can attain wealth through hard work.

» 62% believe that networking is the key to financial success.

» 90% say they’ve made a bad business move, and 3/4 say it was crucial to their success.

» They are 5x more likely to continue in the same business despite previous failures.

» 65% characterize their approach to negotiating as “doing whatever you need to do to win.”

» They need an average net worth of $24 million to feel wealthy, and $13.4 million to feel “rich.”

» Only 14% “trust the government” (compared to 50% for typical middle-class families).

Interestingly, nearly half believe a child’s academic achievement reflects their success as a parent, and 75% of these individuals chose their home’s location based on the school district. In contrast, only 16% of middle-class households are will to stake their parenting reputation on their kids’ performance in school. Similarly, more than half of middle-class households chose their home’s location because it was close to work.

Based on the above, the authors of the new book “The Middle Class Millionaire” argue that these individuals are re-shaping America in their own images, with the primary changes being in the areas of hard work, networking, persistence, and financial self-interest. Despite the apparent differences between middle class millionaires and the plain old middle class in these characteristics, the authors go on to argue that the trappings of the middle class millionaire lifestyle are beginning to trickle down resulting in “a whole new level of keeping up with the Joneses.”

What do you think? Has investing in real estate helped you to achieve a net worth in excess of one million dollars? Send me an e-mail to john@money99.com and tell me your story. If you ask me to withhold your name, I will honor your request. I will print remarks from several respondents – no names – just the facts!

This is in a $625K foreclosure in Alpharetta, actually now the new city of Milton, Georgia. I love this idea of a big, roman tub, jetted with a view of a wooded area. The fireplace is an added bonus in the bathroom too. If you want to purchase a foreclosure, or any house for that matter, don’t forget the Duffy Buyer Cash Bonus where you can earn up to 1/2 of our commission when you use us as your agent.

Also, Duffy Realty of Atlanta has a sister company, Lenox Asset Brokers that gets foreclosure assignments and listings from the banks. If you wan to be added to the foreclosure list and notified BEFORE listings go on the market, please email us now. We send the list out weekly of homes that we are about to list.

www.DuffyRealtyofAtlanta.com