Real Estate Information

Consumers have a hard enough time working with banks to resolve issues with their mortgages.  But some consumers may find it harder to get an answer on their loan modification or short sale because their loan keeps moving from lender to lender.  Unfortunately these days your mortgage may be sold in the middle of trying to agree on a workable solution.  Take a look at this Huffington Post article about a local Albuquerque man who has been facing this problem for over 2 years!  

http://www.huffingtonpost.com/ben-hallman/mortgage-homeowners-debt-home-loans_b_1373070.html

Seventy-five percent of Americans say that “Owning a home is the best long-term investment they can make and is worth the risk of ups and downs in the housing market,” according to a new survey of 2,000 bipartisan voters by the National Association of Home Builders.

Despite their situation — whether underwater on their home or even renters — the survey found Americans to be optimistic about home ownership. Eighty-one percent of those who own their homes outright, 76 percent with mortgages, 67 percent of renters, and 65 percent who have underwater mortgages cited home ownership as the “best long-term investment.” When survey respondents were asked whether they’d recommend buying a home to a friend or family member just starting out, 80 percent of Americans said “YES.” Even home owners currently underwater — those who owe more on their mortgage than their home is currently worth — overwhelmingly (78 percent) said they would recommend home ownership to family or friends starting out.

More buyers are coming up through the pipeline too. The survey found that 73 percent of those surveyed who do not own a home said their goal is eventually to buy one. The NAHB survey also found: ? 58 percent of Americans oppose eliminating the mortgage-interest deduction and 63 percent oppose lowering it. What’s more, 57 percent of those surveyed say they are less likely to support a candidate for Congress who wanted to eliminate the mortgage-interest deduction. ? Respondents were split on about requiring a 20 percent down payment to purchase a home: 49 percent were in favor and 49 percent opposed it. However, mortgage holders and renters aged 18 to 54 were more opposed to it: 58 percent of younger mortgage holders and 59 percent of younger renters opposed adding a 20 percent down payment requirement.

Source: “The Cook Report: The Home Front,” National Journal (June 2, 2011)

Introducing the latest additions to Team Red Truck....

David Swagerty, Listing Specialist

Yvette Serna, Buyer Specialist

Team Red Truck offers unparalleled service to ALL clients in the Albuquerque New Mexico real estate market. Your complete satisfaction with our service and representation is our number one priority!

Deanna Dopslaf and Team Red Truck serve the entire Albuquerque New Mexico Metro real estate market including the surrounding communities of Rio Rancho, Kirtland AFB, Corrales, Placitas, Los Lunas and Bernalillo.

Albuquerque International Balloon Fiesta® Celebrates 40th Event

World’s Largest Ballooning Event Takes to Skies October 1-9, 2011

Albuquerque, NM – The Albuquerque International Balloon Fiesta celebrates its 40th event with over 500 hot air balloons representing 20 countries and honoring the person who started it all in 1972 Sid Cutter, the founder and “Father of Fiesta”.

The 40th event will occur October 1-9, 2011 at Balloon Fiesta Park. New this year will be the Sandia Resort and Casino $100,000 challenge, the richest active prize in ballooning. It will test pilot’s skill and provide great visuals as competitors play an airborne version of ring toss, trying to connect with one of ten poles during the competitive flying events.

The breathtaking mass ascensions featuring two waves of hot air balloons will fill Albuquerque’s morning skies with hundreds of hot air balloons on October 1, 2, 5, 8 and 9. Evening events bring dusk to life with Balloon Glows on October 1, 2, 6, 7 and 8.

Opening day at Balloon Fiesta Park will feature a “Missing Man Formation” balloon launch to honor the “Father of Fiesta” Sid Cutter who passed away earlier this year. The 16th America’s Challenge Gas Balloon event, a cross country competition will also help kick off the opening day festivities.

The hot air competitive flying starts on Monday of Balloon Fiesta week with pilots aiming to win the richest active prize in hot air ballooning; during the Sandia Resort and Casino $100,000 Challenge. Competitive flying will continue throughout the week, taking a break on Wednesday for the Flight of the Nations. The Flight of the Nations will honor the 20 countries participating in the 40th event, as each flies their nation’s flags from their balloon.

Flying pigs, a giant butterfly and other unique objects are among the 98 special shape balloons that will take to the skies for their own mass ascension and balloon glows on Thursday and Friday at Balloon Fiesta Park.

For details on events, schedule, entertainment and photographs visit our website www.balloonfiesta.com and follow us in on Twitter @BalloonFiesta and Facebook.

About the Albuquerque International Balloon Fiesta

The Albuquerque International Balloon Fiesta is an annual festival of hot air balloons that takes place every October in Albuquerque, New Mexico, USA. It is the largest gathering of balloons and balloonists in the world. For details on events, schedule, entertainment and photographs visit our website www.balloonfiesta.com and follow us in on Twitter@BalloonFiesta and Facebook.

Save Thousands On Interest & Taxes....

Purchasing a home can save you money very quickly.

FIRST, you'll save on taxes because the interest on your home mortgage is tax deductible. If you rent, your landlord gets the break.

SECOND, you'll save on interest payments while keeping the great tax advantage.

For example if you are paying $900 per month in rent, you are paying a portion of this towards your landlord's property taxes and mortgage loan interest. Your landlord can write this amount off. You derive absolutely no tax break. When you own a home, you now reduce your taxes for the mortgage interest and for your property taxes. Your interest is always the highest during the early years of your loan, so your overall write-off is largest during these early years.

Paying rent is like throwing your money out the car window each month. You pay it out and never see it again. With home ownership you receive loan interest write-off, and gain money over the years from the increased value of your home. Over a ten year period, on an initial purchase price of $100,000, you could gain over $100,000 in tax advantages and appreciation based on an 8% mortgage interest rate and 5% per year increase in home values.

On both the 15 year and 30 year loans, your interest deduction is highest in the first few years of the loan, so your tax deduction is highest then, too. Remember, if you plan to move or refinance after 5 years, you will maximize your tax deductions. Keep in mind that as you pre-pay part of your loan to reduce the interest expense, you also reduce your tax deduction. How long you plan to keep your current mortgage loan can help determine which type of loan, and which payment strategy, is ideal for you.

Have questions? Give us a call. We are happy to help.

How Much Home Insurance Is Enough?

Home Owner's insurance policies are often an after-thought--that is, until disaster strikes. Home owners in Joplin, Mo., Tuscaloosa, Ala., and other cities recently flattened by tornados are now finding that out too late as they discover that their insurance policies likely will not entirely cover the costs to rebuild. While most home owner's insurance policies will cover tornado damage, many home insurance policies are undervalued. In fact, one study from 2008 by Marshall & Swift finds that 64 percent of homes are undervalued for insurance purposes. Home Owner's insurance coverage typically comes in three categories:

Replacement cost: It covers the cost of replacing or repairing a home, based on a certain dollar limit. However, some home owners with this type of insurance find that their insurance does not reflect increases in the cost of construction since they originally took out the policy.

Extended replacement cost: The insurance company will pay a certain percentage above the replacement cost to account for inflation. However, home owners still may face inadequate coverage with this too, particularly if they haven’t updated their insurance coverage in awhile.

Guaranteed replacement cost: Regardless of how much prices have increased since first taking out the policy, this coverage will pay the total cost of replacing your home. This coverage can be expensive and also difficult to even get. Most standard home insurance policies also include an "inflation guard" provision, which automatically adjusts the coverage limit when a policy is renewed, but some coverage may charge extra for this. Many policies also will cover lost or damaged possessions at about 50 percent to 70 percent of the amount of insurance on the home. (The USA Today cites an example: If your policy provides $250,000 to rebuild a home, you may stand to also get $125,000 extra to replace your damaged belongings.)

Source: “If Disaster Strikes, Will Your Insurance Come Through?” Gannett News Services (May 31, 2011)

Do Agent Bonuses Really Works…….

If you are trying to sell your home quickly, some real estate agents may recommend that you offer a bonus to the agent who brings in the buyer. They feel that a monetary incentive will cause an agent to push your house over the one down the street.

Do such bonuses work?

You cannot expect a bonus to sell an overpriced house or overcome housekeeping shortcomings that detract from your home's overall appeal. If your house looks great and is priced right, offering a bonus to the real estate agent could help it sell more quickly. Agents earn their reputations by helping people find homes that they love. When deciding which homes to show prospective buyers, their decision will be based on whether the home will meet their needs. If the Multiple Listing Service indicates that a bonus is being offered, it could encourage more agents to preview the house and result in more showings.

But remember that the bonus may get them in the door but…. if the house doesn’t show well or is not priced right it still will not sell.

How a New Car Payment Reduces Your Purchase Price……

When you contact a loan officer to get prequalified for a mortgage loan, keep in mind all the numbers that will go into figuring your approval level.   Student loans, car payments, credit cards and many other items to also include your payment history.

For example, suppose you earn $5000 a month and you have a car payment of $400. Using an interest rate of 8.0%, you would qualify for approximately $55,000 less than if you did not have the car payment.

Even if you feel you can afford the car payment, mortgage companies approve your mortgage based on their guidelines, not yours. Do not get discouraged, however. Think about buying a home first, buying a home is a much more important purchase when considering your future financial well being.

However, if you have not already bought a car, remember one thing. Whenever the thought of buying a car enters your mind, think ahead long term….

Buy the house first……. then look at purchasing a car!

Albuquerque / Rio Rancho Monthly Highlights

The median sales price for detached, single-family homes in April was $165,000, rising 1.85 percent from the previous month; the first positive increase in the median sale price since December.

• The top selling price range of detached, single-family homes went from $120K - $139K in March to $200K -$249K in April.
• April was the 2nd consecutive month this year that properties going under contract exceeded 900.

To View the Complete April Albuquerque Metro Market Report!

Source: Greater Albuquerque Board of Realtors – 10 May 2011