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Real Estate

Coldwell Banker Eyes 2nd National Pet Adoption Event

NAR Daily News Magazine - August 27, 2017 - 11:00pm

During its annual event last year, the real estate franchising giant and its partner, AdoptAPet.com, helped 20,000 dogs find homes in one weekend...

Categories: Real Estate

You Don’t Have to Make a Down Payment on a VA Loan—Should You Anyway?

RisMedia - August 27, 2017 - 11:02am

(TNS)Many VA borrowers know that the VA home loan doesn’t require a down payment.

Indeed, the U.S. Department of Veterans Affairs, which guarantees this type of mortgage, is practically famous for its zero-down option, which opens the doors of homeownership to veterans, active duty service members, surviving spouses and other VA-eligible buyers. Many VA borrowers have little or no cash to purchase their first home.

VA loans also don’t require mortgage insurance, which is usually the case when you don’t put down 20 percent.

Though a down payment isn’t required for a VA loan, borrowers can still make one. Should they? Or is the no-money-down strategy so attractive that a down payment never makes sense?

The answer depends on the borrower’s type of military service, homeownership experience, cash position and other factors.

Down Payment Lowers Funding Fee
The main benefit of making a down payment is paying a lower funding fee.

The funding fee supports the loan guaranty, which encourages lenders to offer VA loans at lower rates and with easier qualifying guidelines.

Borrowers typically finance their funding fee as part of their loan amount, rather than pay it upfront at closing.

VA borrowers in the Reserves or National Guard pay a slightly higher funding fee with or without a down payment.

Borrowers who have a service-connected disability are generally exempt from funding fees.

First-Use Funding Fees Lower With Down Payment
The funding fee for eligible first-time homebuyers is 2.15 percent of the loan amount with no down payment.

With a 5 percent down payment, the fee is reduced to 1.5 percent. With 10 percent or more down, it drops to 1.25 percent.

Subsequent Funding Fees Higher
The funding fee is 3.3 percent for VA buyers who use the program to buy their next home if they don’t make a down payment.

With a down payment, the funding fee for subsequent-use again drops to 1.5 percent with 5 percent down, and 1.25 percent with 10 percent down.

For example, the monthly principal and interest payment for a $200,000 home loan with no down payment, a 3.5 percent interest rate and 30-year term is $898.

Financing the 3.3 percent funding fee adds $6,600 to the loan amount and raises the payment by $30 to $928.

A 5 percent down payment reduces the fee to $3,000 and the payment to $912.

That means the borrower would save about $16 each month.

Down Payment Lowers Monthly Payment
Don’t forget that a down payment also lowers the borrower’s base loan amount and monthly mortgage payment.

“The 5 percent down payment factors in (to the savings) as well because you’re financing 5 percent less,” says Mike Dill, corporate trainer at Guaranteed Rate.

For borrowers who need to “target their payment within a certain range,” to use Dill’s characterization, a down payment could mean the difference between qualifying for the loan and not qualifying.

Down Payment Finances Future Closing Costs
A down payment could make it easier to sell a home if the buyers want to move before they build equity through monthly payments or appreciation and without paying closing costs out of pocket.

Closing costs to sell can be 6 percent or more of the home’s value.

“If you didn’t have any equity, potentially you’d have to write a check for that amount,” says Michael Frueh, director of Loan Guaranty Service at the VA in Washington, D.C.

The alternative could be a default or even foreclosure.

Other Uses for Your Cash
Despite these advantages, only 22 percent of VA buyers made a down payment in 2015, according to Frueh. The other 78 percent bought with no money down. The VA doesn’t track how many subsequent-use borrowers rolled over equity from a prior home they sold toward a down payment.

Frueh says the average VA borrower has only about $10,000 at closing.

That cash might be better used for home-related purchases, repairs or other purposes. As Dill says, “The advantages of putting money down are so slim compared with keeping that money in case you have repairs or as a safety net.”

Consider Return on Investment
Borrowers could invest the money they didn’t use for a down payment in other assets or use it to pay off consumer debt, such as an auto loan, credit card or student loans.

A borrower who purchased a $200,000 home and later sold it for $300,000 could net $80,000, use $30,000 to make a 5 percent down payment for a new $600,000 home and keep $50,000 in cash, tax-free.

Visit Bankrate online at www.bankrate.com.

©2017 Bankrate.com
Distributed by Tribune Content Agency, LLC

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The post You Don’t Have to Make a Down Payment on a VA Loan—Should You Anyway? appeared first on RISMedia.

Categories: Real Estate

The Renter Budget: Most and Least Costly Cities

RisMedia Consumer News - August 25, 2017 - 10:01pm

Renters’ budgets are being stretched in many cities—but some more than others, according to a new study by GOBankingRates. The most costly:

  1. San Francisco, Calif.
    Median Rent (One-Bedroom Apartment): $3,395
  1. San Jose, Calif.
    Median Rent (One-Bedroom Apartment): $2,505
  1. New York
    Median Rent (One-Bedroom Apartment): $2,395
  1. Washington, D.C.
    Median Rent (One-Bedroom Apartment): $2,271
  1. Jersey City, N.J.
    Median Rent (One-Bedroom Apartment): $2,200

The least costly:

  1. El Paso, Texas
    Median Rent (One-Bedroom Apartment): $555
  1. Detroit, Mich.
    Median Rent (One-Bedroom Apartment): $600
  1. Wichita, Kan.
    Median Rent (One-Bedroom Apartment): $625
  1. Tucson, Ariz.
    Median Rent (One-Bedroom Apartment): $628
  1. Fresno, Calif.
    Median Rent (One-Bedroom Apartment): $650

Source: GOBankingRates

For the latest real estate news and trends, bookmark RISMedia.com.

The post The Renter Budget: Most and Least Costly Cities appeared first on RISMedia.

Categories: Real Estate

5 States Where Residents Lead Richer Lives

RisMedia Consumer News - August 25, 2017 - 10:00pm

Select states have a quality of life that surpasses others in areas such as employment, housing and safety. A recent study by GOBankingRates ranks the top five:

  1. New Hampshire
    Median Household Income: $66,779
    Median Home List Price: $278,000
    Violent Crimes Per 1,000 People: 1.99
  1. Wyoming
    Median Household Income: $58,840
    Median Home List Price: $238,125
    Violent Crimes Per 1,000 People: 2.22
  1. Virginia
    Median Household Income: $65,015
    Median Home List Price: $299,950
    Violent Crimes Per 1,000 People: 1.96
  1. North Dakota
    Median Household Income: $57,181
    Median Home List Price: $201,500
    Violent Crimes Per 1,000 People: 2.39
  1. Delaware
    Median Household Income: $60,509
    Median Home List Price: $260,000
    Violent Crimes Per 1,000 People: 4.99

 

Source: GOBankingRates

For the latest real estate news and trends, bookmark RISMedia.com.

The post 5 States Where Residents Lead Richer Lives appeared first on RISMedia.

Categories: Real Estate

Report: 30% of Luxury Deals Are ‘Suspicious’

NAR Daily News Magazine - August 24, 2017 - 11:00pm

Buyers in nearly a third of high-end real estate transactions have been linked to money laundering or other financial crimes, according to...

Categories: Real Estate

Inventory Relief for Desperate Buyers?

NAR Daily News Magazine - August 24, 2017 - 11:00pm

Realtor.com® predicts a big surge in new listings for the month.

Categories: Real Estate

30-Year Mortgage Rate Hits New 2017 Low

NAR Daily News Magazine - August 24, 2017 - 11:00pm

But will borrowers be enticed?

Categories: Real Estate

Top Destination Cities for Relocation Buyers

NAR Daily News Magazine - August 24, 2017 - 11:00pm

Find out which locations will be drawing in transplants in the coming months.

Categories: Real Estate

Gated Communities Take Privacy to New Level

NAR Daily News Magazine - August 24, 2017 - 11:00pm

Developers are discovering that high-end buyers are attracted to neighborhoods with more land and fewer occupants.

Categories: Real Estate

The 20 Markets Dominating in August

NAR Daily News Magazine - August 23, 2017 - 11:00pm

The Golden State scored half of August’s 20 hottest housing markets. 

Categories: Real Estate

Renters Eyeing Properties With ‘Homey’ Feel

NAR Daily News Magazine - August 23, 2017 - 11:00pm

A new national survey of renters found a more amenity-driven consumer base, with many swayed by technology and concierge services.

Categories: Real Estate

Living Rooms Are Heading Upstairs

NAR Daily News Magazine - August 23, 2017 - 11:00pm

Upper-level living rooms are becoming a sought-after space among homeowners.

Categories: Real Estate

Open House Thefts Putting Agents on Alert

NAR Daily News Magazine - August 23, 2017 - 11:00pm

A string of thefts in Wisconsin is serving as an important reminder for real estate pros to stay on guard during open houses.

Categories: Real Estate

Half of Homes Sold in Less Than a Month

NAR Daily News Magazine - August 23, 2017 - 11:00pm

Over half of homes sold were on the market for less than a month in July, and the total housing inventory dropped 1 percent by the end of the...

Categories: Real Estate

Are New Homes Pricing Out Too Many Buyers?

NAR Daily News Magazine - August 23, 2017 - 11:00pm

The prices of newly built homes are rapidly rising, which may have caused the plunge in new-home sales last month, CNBC reports.

Categories: Real Estate

What Home Thieves Target Most

NAR Daily News Magazine - August 22, 2017 - 11:00pm

These infographics reveal which of your clients is most at risk of a burglary and what thieves are really after.

Categories: Real Estate

HARP Extended Through 2018

NAR Daily News Magazine - August 22, 2017 - 11:00pm

More than 143,000 homeowners could still benefit from refinancing through the program, according to the FHFA.

Categories: Real Estate

Could Value Range Pricing Become a Thing?

NAR Daily News Magazine - August 22, 2017 - 11:00pm

This tactic is still relatively rare, but it’s becoming more popular because it offers advantages to both buyers and sellers...

Categories: Real Estate

Feds Expand Effort to Catch Money Laundering in Real Estate

NAR Daily News Magazine - August 22, 2017 - 11:00pm

Honolulu will join several other areas in which title agents are required to report information for specific transactions. Certain wire transfers...

Categories: Real Estate

Add Your Logo to Facebook Search Feeds

NAR Daily News Magazine - August 22, 2017 - 11:00pm

If you’re posting any original content on the social media platform, now is the time to upload your logo through Facebook’s Brand...

Categories: Real Estate