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Low Mortgage Rates–Is Refinancing Your Andover Mortgage The Right Thing For You?

pzuena — Thu, 10 Sep 2009 14:01:53 +0000

With mortgage rates at historic lows lately, many of our Andover neighbors are considering refinancing their mortgages. This can be a very beneficial thing to do if you have all of the proper information.

First read through your current mortgage to make sure there are no prepayment penalties for paying off your loan early. If this answer is no and you are considering refinancing your loan, is it generally makes the most sense to refinance when you can lower your interest rate by two points. For example, going from 8 percent on a thirty-year fixed loan to 6 percent on a thirty-year fixed loan.

Next consider how long will it take for you to recover the refinance fees in monthly savings on your “new” loan. You can use my mortgage calculator to calculate this by dividing the total costs of the refinance by your monthly savings. This number represents how many months you will need to live in the home to cover the costs of the refinance.

Finally, if your refinance is successful and you have lower monthly payments, it might be best to use that money to save, maybe for a rainy day, towards a retirement plan or for a child’s’ college costs.

For more information on refinancing your loan go to “http://finance.yahoo.com/how-to-guide/loans/12821“

Avoiding A Foreclosure On Your Andover Home

pzuena — Tue, 04 Aug 2009 14:34:04 +0000

Today in the United States there are more and more homeowners facing the devastating financial challenge of foreclosure. Andover, MA and the surrounding communities are not immune from the national housing market crisis. While single family homes are still selling in Andover, 4.3% fewer homes have been sold this year compared to last year. Market data also shows a nearly 10% decline in the median sales price of a single family home in Andover. Sales of condominiums in Andover have been even slower. Market reports show a 32% decline in the number of condominium units sold along with a 29% decline in the median sales price.

If you're facing a financial hardship or are at risk for foreclosure on your home in Andover, consider the following alternatives.

Reinstatement: This option is extremely simple, but the most difficult. The homeowner asks the mortgage company the total amount owed and pays it all, including fines and fees. It does not require approval, and lenders will allow this up to the day before the final foreclosure sale.
Forbearance or Repayment plan: This is when a homeowner negotiates repaying their back payments over a period of time. Usually, the homeowner makes their current payment as well as a portion of the back payments owed. Most lenders require homeowners to be qualified for this option.
Mortgage Modification: This plan is when either the interest rate of the loan, the principal balance or the term of the loan is reduced. The result is generally a lower, more affordable payment for the homeowner. Homeowners need to qualify for this option and must supply all necessary documentation, while the lender has to be actively pursuing modifications.
Short Sale: Contact me your Certified Distressed Property Expert to negotiate the sale of your home. In many cases the mortgage company will allow a short sale which includes all realtor and legal fees.

For more information on ways to avoid foreclosure go to the HUD website. To find out the current value of your home go to MyHomeValueToday.

Worried about foreclosure on your Andover home?

pzuena — Fri, 31 Jul 2009 21:38:15 +0000

Sometimes you have no choice...you have to sell your home but you owe more money on your home than you can sell it for in the current real estate market here in Andover. If so, a short sale can be a very good solution to your problem. Still, there remain many myths about short sales and unfortunately many homeowners risk foreclosure unnecessarily because of these myths. Let's take a look at the truth about short sales. Seven short sale myths are:

Short sales are impossible and never get approved. It is true that short sales are more difficult but they are not impossible. A Certified Distressed Property Expert (CDPE) has extensive training to help homeowners in distress. By engaging the services of a CDPE you're chances of completing a successful short sale improve significantly.
Banks Don’t Accept Short Sales. In reality, banks, too, would like to avoid foreclosure whenever possible, but it is critical that your realtor has special training the process. Many attempted short sales fail simply because the process was mishandled.
You must be behind on your mortgage to negotiate a short sale. Many lenders today focus on verifiable hardship, monthly cash flow shortfall and insolvency, not just people in default.
Buyers Avoid Short Sales. Many agents report that buyers call them looking for short sales and an experienced, knowledgable real estate agent understands short sales are becoming synonymous with a “good deals.”
Listing your home as a short sale is embarrassing. Recent estimates state that 1 out of 5 homeowners in the U.S. is in this situation. You are not alone!
Banks prefer to foreclose. Banks do NOT want to foreclose. Banks, investors and the federal government have all publicly stated that if a person qualifies for a short sale, then the deal needs to be considered.
There is not enough time to negotiate a short sale before my foreclosure. Many lenders today will stall a foreclosure up to the final day of the process, with a legitimate contract.

I am one of the few realtors in the area who is a Certified Distressed Propery Expert. I have the training necessary to help homeowners who may be having difficulty keeping up with their mortgage payments. Search here for homes for sale in Andover and surrounding communities.

Even Woodchucks Know It’s a Good Time to Find a Home in Andover!

lheraty — Mon, 27 Jul 2009 18:00:21 +0000

Even woodchucks know its a good time to find a new home in Andover! But unlike these critters, if your thinking about buying a home, you need know how much of a mortgage you can afford. It's important to do this even before you begin to look at houses for sale. Otherwise you may be wasting your valuable time and you may be disappointed to learn you cannot afford the home you'd like to buy. The first step in determining what type of home you can afford is to figure out what lenders call your "debt-to-income ratio." Most lenders use 36% and under, but you might be more comfortable with a lower number such as 28% of your gross monthly income for housing expense. The following are the steps will help you calculate how much home you can afford.

Figure out all of your debt. Multiply your gross monthly income by .36 to find your total allowable monthly debt.
Add up all of your fixed monthly expenses.
Subtract your fixed monthly expenses from your total allowable monthly debt.

This number is the amount that you have for your mortgage payment, your home owner’s insurance and your property taxes. For more help figuring out your total allowable monthly debt see a home affordability calculator.

Andover First-Time Home buyers $8,000 Tax Credit Expires Soon

lheraty — Fri, 24 Jul 2009 14:31:15 +0000

You've heard about it...you've read about it...but do you know that the tax credit for first time homebuyers expires on December 1, 2009? That means you MUST close on your new home before the deadline. First time homebuyers will be entitled to claim a total tax credit of $8,000 or 10% of the purchase price, whichever is less. The credit is allowed for your primary residence and will only have to be re-paid if you sell your home within two years of purchase. Once you identify a home to purchase, there are inspections, appraisals and legal documents to prepare, that's why most most closings in Andover and North Andover take forty five to sixty days, so the time to search for your home is now! For more information about this credit go to the IRS website or contact me for more information on how you can take advantage of this historic legislation!

Mortgage rates in Andover and North Andover are falling!

lheraty — Wed, 22 Jul 2009 11:27:43 +0000

Although mortgage rates are still above the record lows, mortgage interest rates have been falling. Rates rose this past June due to the yields on climbing long-term government debt. Investors became concerned that large amounts of extra government debt would trigger inflation. Experts speculate that mortgage rates fell this past week from market concern due to the weakening labor market. Whatever the reason, lower mortgage rates are great news for home buyers and home sellers in Andover, North Andover and the Merrimack Valley. Look at the difference just a 1% point increase makes in these loans.

People are waiting for prices to continue to drop; however, when rates go from 5% to 7%, it is the equivalent of a 20% increase in price to the borrower. Now is the time to buy. For more information on how even small changes in fixed mortgage rates contact me at RE/MAX Partners in Andover, MA.

Taking a vacation? Protect your home in Andover or North Andover from burglary while you’re away.

lheraty — Mon, 13 Jul 2009 21:30:12 +0000

The kids are finally out of school here in Andover and North Andover and you may be planning a fun family vacation! Before you go, take some time to think about the best ways to protect your home from a possible burglary while you are away. The post offices in Andover and North Andover will gladly stop the mail while you're away and deliver it in bulk when you return---no need to make two trips to the post office. A simple phone call to the Boston Globe or the Eagle Tribune will stop the newspaper delivery--you can even donate your undelivered newspapers to a local school program! Obviously be sure to lock the house up tightly and leave a light on. Here are a few more ideas which go a step beyond these old stand-bys:

If you happen to be going away on an extended trip, you may be better off asking a neighbor to pick up your mail and newspaper and bring it into your home each day.
Invest in a couple of timers. You can set them to turn a light on and then off at the same time each day. You can also use a timer on a radio or stereo.
Hire a house sitter in the form of your neighbor’s responsible teen, or work out a system with your neighbor where you can cover their house when they go away and they look after yours when you are away.
If your neighborhood does not already have a “neighborhood watch” program, be the one to start it. That way you will always have someone to tell your travel plans to.
Consider purchasing a home security system. Your home will be regularly monitored and many companies offer a neighborhood patrol. Many will even monitor your home for smoke, water or temperature changes.

Whatever your plans are have a safe, wonderful vacation!

How to Keep Your Computer Safe–Identity Theft Part 3

lheraty — Fri, 10 Jul 2009 14:00:14 +0000

Many people are afraid thieves will somehow get their information off of the computer. This is possible for them to do, but there are ways to protect yourself. Some people find that installing anti-virus, anti-spy ware, firewall protection and hardware firewalls is over-kill. In reality, when protecting your personal information you should always err on the side of caution.

When setting up wireless Internet access, educate yourself on wireless security.
Store your backed-up data away from your computer.
Never open an e-mail from someone you don’t know.
Never open attachments unless you know where it is coming from. Make sure you set up Windows to show all file extensions.
Make sure you set up your browser to block pop-ups.
Never use your credit card on a website that does not direct you to a secure page with a URL starting with https://.
Use different passwords for every single site you use that asks for one. Always mix letters and numbers to make up that password.
Never keep financial information on your hard drive.

For more information on Computer Safety go to Internet Safety Solutions.

How To Make Sure Identity Theft Never Happens To You-Identity Theft Part 2

lheraty — Thu, 09 Jul 2009 14:00:15 +0000

Statistics show that around 5% of reported identity theft case victims are children. The reason your child is a target is because the crime will very likely go undetected for years. Most do not realize it until they are in college and apply for their first credit card, and find then that they have been victimized. Take heart, there are many ways to avoid becoming a victim of identity theft. Here are some of them:

Create a list of every credit card number and bank card that you keep in your wallet.
Never keep your social security card or any information with your social security number on it in your wallet.
Never give out any private information on your e-mail.
Cease all bank and credit card mailings.
Always reconcile your bank statements and go over your credit card statements. Some thieves start small, to find out who pays attention.
Keep your car registration and car insurance together in a closed envelope, hidden away in your car. Be sure to always lock your car.
Try never to use a public computer for business use or to make a purchase.
Memorize your ATM pin, and make sure no one is standing nearby when you use your ATM card.
Never save financial information on your cell phone.
Never apply for a job on-line, unless the employer has a verifiable address.

For more information about safer online banking go to going paperless.

How Thieves Can Steal Your Personal Information-Identity Theft Part 1

lheraty — Tue, 07 Jul 2009 14:00:43 +0000

Identity theft has become a very serious problem in the United States. Thieves are not only stealing your personal information for themselves, but many simply sell it on the black market to another thief. They are using this personal information not only to obtain cash and credit cards, but high-cost medical procedures as well. There are a myriad of ways that thieves can steal your private information. Be aware of the following threats:

Phishing: This is an e-mail in your Inbox that claims to be from either your bank, Paypal or Ebay, or other online service. They then ask you to click on a link and enter your personal information.
Spoofing and Pharming: Thieves can actually redirect legitimate website traffic to an imposter site, where they will ask you to enter your personal information.
Spyware: It is very common for people to mistakenly download illicit software and find themselves accidentally clicking on a pop-up. This opens the door for thieves to steal your credit card numbers and passwords by accessing information on your hard drive.
Vishing: This is “voice phishing”, which is when a thief sends you a phone message asking you to key in your personal information.
Bank card skimming: Thieves actually add a fake ATM slot and camera to a legitimate cash machine so they can copy your account information. Servers at restaurants can also be armed with a portable card reader.
Thieves try to steal your wallet and can also go through your garbage for personal information.

If you are concerned that you are an Identity theft victim go to the Federal Trade Comission website for more information.