Another great job by HomeLink Real Estate. This home is now in escrow!
Another great job by HomeLink Real Estate. This home is now in escrow!
We have provided the following mortgage worksheet to help you compare different mortgage products. It is meant to be downloaded and printed as many times as needed. Right click the the Web Browser Window and then click on the “Print” button. Repeat this File/Print procedure to obtain as many copies of the worksheet as needed.
Fixed-rate mortgages are traditionally the most popular type of mortgage in America . They are typically taken out over a 30-year period, but lengths of 15 to 25 years are also available. The interest rate and monthly mortgage payment on a fixed-rate mortgage remain the same throughout the entire life of the loan. The main advantage of a fixed-rate mortgage is that the borrower knows exactly what their monthly costs will be until the entire mortgage has been completely paid out. The main disadvantage is that the borrower pays a premium for this guarantee in the form of slightly higher interest rates.
With adjustable-rate mortgages the interest rate is linked to current market rates and fluctuates with economic changes. When interest rates go down, so do your mortgage payments. When rates go up, your mortgage payments increase accordingly. ARM interest rates are usually set lower than those found in fixed-rate mortgage, at least at the beginning of the term. This means that a homebuyer opting for an ARM will be able to qualify for a larger loan since they are paying less interest. However, because ARM interest rates fluctuate there is a level of uncertainty and risk involved if economic conditions create long-term interest rate increases. ARM interest rates are normally fixed for the first six months to a year, after which they are pegged to some major economic index such as the T-bill rate.
For adjustable-rate mortgages there are two “caps” on interest rate increases. The “period of adjustment” cap determines how much the interest rate is allowed to vary from one period to the next. For example if the agreed upon period is every six months with a period of adjustment cap of 1%, then the maximum interest rate increase over that six-month period could not exceed 1%. The second cap puts a ceiling on how high the interest rate can increase over the life of the loan. For example, the maximum increase might be negotiated to be 6%. This figure should be taken into account as the “worst-case scenario” when considering this type of financing since the interest rate could possibly rise by up to 6% from the initial rate. If you are sure that you could afford these worst-case rates then you might consider this type of mortgage since you would benefit if the rates went down.
Another feature, which can sometimes add a level of comfort to this type of mortgage, is a conversion feature. Having a conversion clause in the mortgage gives the homebuyer the option to lock in the interest rate at certain times during the term of the mortgage. There is usually a conversion charge associated with this option.
A 2-step mortgage is a combination of both fixed-rate mortgages and adjustable-rate mortgages. Generally speaking, the first 5-7 years of the mortgage are treated like a fixed-rate mortgage. During the remainder of the term, known as the second step, the interest rate is allowed to fluctuate like an adjustable-rate mortgage.
During the initial first step of a 2-Step mortgage the interest rate is generally lower than for a fixed rate mortgage but higher than for an adjustable rate mortgage. The benefit of this type of mortgage is that it initially offers the homebuyer a lower interest rate than those found in fixed rate mortgages while still retaining the stability of a fixed payment and interest rate for the first few years of the loan. The homebuyer still needs to keep in mind that in the second step, or adjustable-rate portion of the mortgage, the interest rate may move either up or down, depending on the economy. As mentioned in the above section on Adjustable Rate Mortgages, a mortgage conversion feature can sometimes add a cushion of security to this type of mortgage.
|Conforming & Non-Conforming Mortgages|
A conforming mortgage refers to a mortgage that is drawn up within the guidelines specified by the lending institutions referred to as Fannie Mae and Freddie Mac. The most common reason for a mortgage to be referred to as non-conforming is because the total amount of the mortgage exceeds the lending limits or total loan amount allowed. This type of non-conforming loan is often referred to as a Jumbo mortgage.
This type of mortgage is usually amortized over the traditional 30-year period, but the actual length of the loan, or the term, is much shorter. At the end of the term, the homeowner must renegotiate a new mortgage at the new current interest rates. The amount still owning at the end of a balloon mortgage term (that is the original loan amount less the payments made against the principle during the term) is then due in full. The homeowner will then have to obtain a new mortgage (either another balloon mortgage, or switch to a fixed-rate or adjustable-rate mortgage) to replace the expired one. The benefit of a balloon mortgage is that the interest rate is noticeably lower than that for traditional 30-year fixed-rate mortgages.
|Please note that homebuyers need to understand that…|
|Federal Housing Administration Mortgages (FHAM)|
These are mortgages that are guaranteed against default by the Federal government. Lenders are willing to give mortgages to homebuyers with smaller down payments than under conventional financing because the Federal government guarantees the loan against default. The homebuyer must pay an insurance premium for this privilege and this cost is usually added to the mortgage. In order to qualify for an FHAM the property in question must meet certain requirements. The maximum amount of loan allowed under this system varies from region to region and is based on the average price of housing in each area. You should contact your REALTOR® or mortgage specialist for further information.
|Veterans Administration Loans (VA)|
|Fannie Mae and Freddie Mac|
Both Fannie Mae and Freddie Mac are independent, privately run companies that operate under special congressional charters. Their mandate is to ensure that mortgage funds are made available to a broad spectrum of the American public. They do this by buying mortgages from approved lenders and then packaging those monies into securities backed by Fannie Mae/Freddie Mac. Those securities are then sold to investors in the secondary mortgage market. Fannie Mae and Freddie Mac are independently owned companies that compete with each other for mortgage business. This competition ensures that there is an ample supply of low cost mortgage money available to the American homebuyer.
Basically, a mortgage is just a loan that is to be used to finance the purchase of property. The property itself is used as security to ensure repayment and the lender holds the title or deed to the property either directly or indirectly (depending on your jurisdiction and type of lender) until you have repaid the entire amount plus interest.
When shopping for a mortgage you should keep in mind that there are many different types available. They can range from fixed rate mortgages where the interest rates never change, to adjustable rate mortgages (ARM’s) where interest rates are pegged to some type of market index, allowing them to rise or fall over time as the economy changes. Between these two extremes are a variety of other products that attempt to blend the advantages of the guaranteed interest rates of fixed rate mortgages with the flexibility found in adjustable rate mortgages. The length, or “term” of a mortgage, is also an important factor to consider. You can choose between short-term mortgages that need to be renegotiated every few years (called “balloon” mortgages), and long-term mortgages where you lock your loan in for up to 30 years.
One of the most important things you need to do before committing to any type of mortgage is to sit down with a mortgage professional and examine the advantages and disadvantages of all available options and determine which product is best suited to your current situation and future plans.
|The Basic Components Of A Mortgage:|
1. Mortgage Amount:
The total amount of money to be borrowed by the Purchaser and applied toward the price of the property. In general, the mortgage amount plus down payment equals purchase price.
2. Down Payment:
The amount of money provided by the Purchaser toward the purchase price of the property (not including legal fees or other acquisition costs). In general, down payment plus mortgage amount equals purchase price.
3. Interest Rate:
The actual cost of borrowing money, charged as a percentage of the outstanding amount owed. Usually compounded on a monthly basis.
4. Term of the Mortgage:
The period of time during which the loan contract is active. During this period the borrower makes periodic payments (usually monthly) to the lender and at the end of the term the balance of the loan becomes due and payable.
5. Amortization Period:
The period of time after which, if all monthly payments are made on time and in full, the loan will be paid out. The term and the amortization of a mortgage are often the same, but do not need to be. Instead of having a 30-year mortgage term with a standard 30-year amortization, the borrower could opt for three 10-year terms (called balloon mortgages). At the end of each term the borrower would have to refinance the loan, necessitating renegotiation of the interest rate and payment schedule with the lender.
6. Discount Points:
Discount points refer to the additional money the borrower may pay to the lender on closing to get a lower interest rate on the loan. The cost of one point equals 1% of the amount borrowed. This means that one point on a $150,000 mortgage equals $1,500. Usually, for each point paid for on a 30-year loan, the interest rate is reduced by about 1/8th (or 0.125) of a percentage point.
7. Prepayment Privileges:
The right of the borrower to pay out all or part of the outstanding principal before it comes due. These privileges are usually set out in the initial mortgage negotiations between the borrower and lender and will differ depending on the type of mortgage.
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Contact Ryan Traeger
Branch Manager/VP of Residential Lending
Cell (661) 510-4765
Work (747) 216-2857
Draper and Kramer Mortgage Corp. NMLS #2551 / Ryan Traeger
NMLS #292286 CA: Licensed by the California Department of Business Oversight under California Residential Mortgage Lending Act; CA-DBO292286
Many people commonly use the terms Salesperson, Broker, Agent and REALTOR® interchangeably, as if they are all one and the same. The truth is that these terms have different meanings and we should be careful in their use.
The term “Salesperson” (as in Real Estate Salesperson or Real Estate Sales Representative) refers to someone who has attained all of the licensing requirements needed to help the public buy, sell, lease, exchange or negotiate for any interest in either real property or a business opportunity. All Salespersons must work under the direct supervision of a licensed Broker.
The term “Broker” (as in Real Estate Broker) specifically refers to someone who has the required qualifications and license to be in the Real Estate brokerage business. Brokers can do everything that a registered Salesperson can, but in addition they are also qualified to own, operate and supervise an actual Real Estate company and employ Salespeople to work for them.
While the term “Agent” is not specific to the Real Estate industry, most Real Estate Salespeople, Brokers and REALTORS® do act as agents when conducting business. An Agent is defined as anyone who represents another in a business transaction.
The word REALTOR® is actually a registered trademark that can only be used by someone who has been accepted as a member of the National Association of Realtors® (NAR). This organization requires all of its members to adhere to a strict Code of Ethics and Standards of Business Practice. The Code and Standards are very important because they assure that all REALTORS® offer the highest level of service, honesty and integrity possible. All REALTORS® are subject to constant professional monitoring that keeps them directly accountable to the individual consumers they serve. NAR also ensures that all of its members are knowledgeable and highly trained in order to better serve the public and offers ongoing education courses so that REALTORS® continue to meet the highest professional standards in an ever-changing industry.
Buying or Selling a home is a complex and stressful undertaking. Getting an expert to help will save you time, money and aggravation.
Looking out for your best interests:
By asking a REALTOR® to act on your behalf during the purchase or sale of a home, you create an Agency Relationship and become the REALTOR®’s client. REALTORS® always owe their clients full fiduciary duties, such as loyalty, confidentiality, accountability, duty of care, obedience to all lawful instructions, and full disclosure of all pertinent facts.
|Buying: The Value of working|
with a REALTOR®
|Selling: The Value of working|
with a REALTOR®
|(10 Common errors to avoid when buying)||(10 Common errors to avoid when selling)|
|Getting the best deal – Know the Market:||Getting the best price:|
What have similar properties sold for in the immediate area? How long were they on the market? How does this one compare? Is it over-priced, under-priced, or fair value? What type of market is it – is it a Seller’s, Buyer’s or a Balanced market? By having this information at your fingertips, you are in a position to negotiate the best price and take advantage of any opportunities that may show up.
Professional marketing means top dollar and a faster sale. REALTORS® spend a lot of time and energy making sure they know their local market inside and out. They know the current market value of properties in your area and are your best resource for determining and getting the best and highest price possible. All REALTORS® have access to all of their agency’s resources and marketing skills, ensuring that all potential buyers are quickly made aware of your home
|Negotiation expertise:|| Showcase your home in the best possible light:|
“First impressions count!”
|While a REALTOR® does many things, one of his or her most important functions is to negotiate on behalf of their clients. When you purchase a home, you want the best deal possible. Your REALTOR®’s job is to facilitate this by drawing up legally binding contracts, assisting in negotiating offers, offering advice and perspective and, if needed, acting as a mediator during any potential disputes between you and the seller.||As unfair as it might be to your home, after only fifteen seconds most buyers have already developed a perception of your property that will color their feelings during the rest of the showing and perhaps dramatically affect how they perceive the value of the property. REALTORS® can offer a great deal of information and advice on how to significantly increase your chances of obtaining the highest and best price for your home.|
|Finding the right home & neighborhood for you:||Dealing only with qualified buyers:|
|REALTORS® spend a lot of time and energy making sure they know their local market inside and out. They are familiar with the current market values of properties in the areas you are looking and are your best resource for finding the right home.||REALTORS® have access to pre-screened and pre-qualified buyers who are really serious about buying in your neighborhood. They work full-time making these connections and are literally the best source of potential purchasers.|
|Determining your “wish list”:||Negotiation expertise:|
|What is it that you want from your new home? A particular style, design, lot type? Proximity to schools, services, work? A pool? A two-car garage? A specific price range? A REALTOR® will help identify exactly what it is you are looking for and ensure that you get to see all the homes that meet your criteria.|
|REALTORS® do many things, but one of their most important functions is to negotiate on behalf of their clients. When you sell your house, you want the best price in a reasonable amount of time. Your REALTOR®’s job is to facilitate this by drawing up legally binding contracts, assisting in negotiating any offers, offering advice and perspective, and if needed, acting as a mediator during any potential disputes between you and the purchaser.|
A REALTOR® brings to the table all of his or her knowledge, training and negotiation skills, and will explain exactly what you can expect from the buying/selling process. He or she will be able to explain your rights and obligations, help organize and strategize, and even discuss financing options.
All REALTORS® are members of the National Association of Realtors® (NAR). This organization requires all of its members to adhere to a strict Code of Ethics and Standards of Business Practice. The Code and Standards are very important because they assure that all REALTORS® offer the highest level of service, honesty and integrity possible. All REALTORS® are subject to constant professional monitoring that keeps them directly accountable to the individual consumers they serve. NAR also ensures that all of its members are knowledgeable and highly trained in order to better serve the public and offers ongoing education courses so that REALTORS® continue to meet the highest professional standards in an ever-changing industry.
Assist with financing needs:
REALTORS® are familiar with all of the complexities involved in the pre-qualification, approval and negotiation of mortgage rates. Like many industries, banks are experiencing quite a bit of competition and are often willing to flex from their quoted rates. Experienced REALTORS® can often assist in finding the most competitive rates and terms available.
Access to Multiple Listing Services:
REALTORS® have exclusive access to the Multiple Listing Service (MLS). It is one of the most effective marketing tools available, giving all REALTORS® nation-wide access to your property. The MLS system also allows a REALTOR® to examine all properties for sale and short-list the ones that are right for you. This not only offers more choices but also saves you valuable time and effort.
1. Looking for a house without getting pre-approved by a lender:
When you are pre-approved, you are effectively a cash buyer. This makes it much easier to negotiate with the seller. Do not mistake pre-approval with pre-qualification; pre-qualification is only the first step in gaining pre-approval. Ask your Banker or REALTOR® for details.
2. Failing to check out the neighborhood thoroughly before buying:
How do traffic patterns change depending on the day, or even the time of day? Are there any future developments in the works? Is that nice green space down the road actually zoned for high-rise development? Ask around – check it out first.
3. Making an offer based upon the asking price, not the actual market value:
Do your homework. What have similar properties sold for in the immediate area? How long were they on the market? How does this one compare? Is it over-priced, under-priced, or fair value? Ask your REALTOR® for an up-to-date market summary.
4. Letting “first impressions” affect your decision too much:
There are entire books written on how the first impression of a home is the single most decisive factor affecting many purchasers’ decision to buy. Don’t let bad dÃ©cor or messy housekeeping scare you away from a structurally solid home that meets all your needs. Remember, you are buying the house, not the furnishings.
5. Buying a home without a professional house inspection:
When buying a house, consider getting a professional property inspection. Not only will you know what you are buying, but these reports will protect you from unforeseen nasty surprises in both the short and long run.
6. Assuming that the Bank’s quoted mortgage rates are written in stone:
Like many industries, banks are experiencing increased competition and are often willing to negotiate mortgage rates. Depending upon the market and profit spreads, it is sometimes possible to negotiate substantial savings. Ask your Banker or REALTOR® for details.
7. Not shopping for home insurance until you are ready to move:
If you wait until the last minute, you will be rushed in finding insurance. Allow time to shop around and get the best deal.
8. Signing documents without reading them:
Do not wait until the last minute before reading the documents; there probably will not be time. Try to get copies of all documents early on in your home search so that you can peruse them at your leisure.
9. Making verbal agreements:
Not only are they harder to enforce, but any written contract you sign will override a verbal agreement. Contract law says that verbal agreements are not enforceable when they deal with Real Property. Always get it in writing!
10. Not knowing your rights and obligations:
If you do not know your rights, then you can be taken advantage of. If you do not know your obligations, you may inadvertently cause friction between yourself and those with whom you are about to enter a contract. Both your REALTOR® and Lawyer are great sources of information concerning this – make use of their expertise and resources.
1. Pricing Incorrectly (too high or too low):
Make sure you determine the market value of your home correctly: If your asking price is significantly higher than what the market is currently bearing, many potential buyers looking for your style of home will view similar but lower priced homes first. Not only does this limit the pool of potential buyers but it also increases the chances that your home will sell for less than its actual value. This is due to the “discount” often associated with properties that have been on the market for a longer than average time. Buyers are often overheard asking their Agent… “What’s wrong with that home? It’s been for sale forever”.
Alternatively, if your asking price is too low, you are literally giving away your hard-earned equity just because you did not know what the market would bear.
2. Failing to “Showcase” your home:
A little work can improve the first impression of your home a thousand-fold. First impressions are lasting impressions and can dramatically affect a property’s perceived value.
3. Mistaking a Bank’s appraisal or a new Tax Assessment as your home’s actual market value:
These processes are based on general guidelines such as lot size and square footage, not the specific qualities and improvements of your home. Using either of these as a baseline could cause you to over-price or under-price your property. It requires detailed background knowledge of all recent neighborhood sales as well as homes currently for sale in order to estimate value accurately. Ask your REALTOR® for a detailed market evaluation.
4. Choosing the wrong REALTOR® or choosing a REALTOR® for the wrong reasons:
It is critical that you have full confidence in your REALTOR®’s experience and abilities. You want a REALTOR® who can explain the whole selling process to you, has a good feel for the market, has access to potential buyers and offers sound advice on how to improve your chances of selling. Try to avoid choosing a REALTOR® on the basis of which one gives the highest estimate of your home’s value. In order to achieve the best sale price within a reasonable period of time you need an accurate indication of what the true market value of your property is. Knowing this allows you to properly price your home, thus maximizing your chances of selling and allowing you to make your future plans with the sure knowledge that your goals can be attained.
5. Failing to take current market conditions/trends into account:
Is it a Buyer’s market, a Seller’s market, a Balanced market? What do future trends look like? Ask your REALTOR® for a full analysis.
6. Not taking advantage of market fluctuations: The Big Picture…
Moving up in a market downturn? If your $150,000 home has dropped 10% in value, so has your $300,000 dream home. Yes, you lose $15,000 on your current home, but you save $30,000 on your next purchase! Always keep in mind the big picture.
7. Using “Hard Sell” during showings:
No one likes being pressured. As well, buyers might wonder why you are so anxious to sell. Let your home speak for itself.
8. Mistaking “Lookers” for “Buyers”:
Many people who look at homes for sale may just be getting a feel for the market, seeing how others ‘showcase’ their homes, or even just looking for decorating ideas. Your REALTOR® deals with these situations on a full-time basis and has the experience needed to separate the “Lookers” from the actual “Buyers”.
9. Relying too heavily on advice from the Buyer’s REALTOR®:
The interests of buyers and sellers are often opposing. In an agency relationship it is very difficult for one REALTOR® to look out for the interests of both the buyer and the seller. You want to make sure you are familiar with Real Estate relationships and the difference between being a client or a customer before accepting advice from an agent or entering into any formal relationship with an agent.
10. Limiting the marketing and exposure of your property:
Part of what a good REALTOR® does is to ensure that your property is showcased and marketed in the best and most productive manner possible. Not allowing a “For Sale” sign on the front yard or limiting viewing times can dramatically reduce the number of prospective purchasers seeing your home and have a serious impact on your bottom line.
The market is moving so fast. This home was just announced available 3 days ago. We had multiple showings scheduled for the weekend and an offer was accepted. Let us know how we can help you find your dream home.
Views galore and four-car-garage in desirable Copper hill neighborhood. Some will say this is the most open and flowing living area they’ve ever seen! Perfect for entertaining with a large open downstairs. Others will say this is the four-car and pull- through garage perfect for all your toys! They’d both be right! With four bedrooms and the laundry room upstairs, no hauling clothes up and down the grand curved staircase. Master suite includes a fireplace, twin walk-in closets and jacuzzi tub. Views from the bedrooms and the backyard along with privacy from neighbors make this home your hillside private paradise. The main floor could easily accommodate a fifth bedroom where the huge bonus room now sits next to a full bathroom. Make this amazing home your own in a neighborhood you’ll be proud to call home. Welcome to Santa Clarita! Home owner in process of packing up, showings will start Saturday and more pictures will be posted.