How to shave $300/month from your budget: Refinance

This is the primo market for refinancing:  I finally closed on my refinance that I was working on for the past 45 days!

I went from 6.375% to 5%, eliminated $99/mo of PMI and am now saving $300/month.  I was able to appraise my home high enough to give me 20% of equity, thus eliminating my PMI.  The refi cost me about $3500 so I’m estimating I should make that up within the year.  After that, it’s $300/month of savings!  It’s hard work to do anything in this lending climate, but the hassle could be worth it!

shave583

Ready for your shave?

Definitely run the numbers and see if it’s worth it.  If you’re only going to be staying in your home for another 2-3 years, then it might not be.  By the time you realize your savings, you would be out of the home!  However, a simple way to know for sure would be to use an online amortization calculator, punch in your interest rate and home loan and compare it with today’s going interest rate.  Divide the cost of the refi (could be $3000-$4000) with your savings and that’s the number of months it will take to make up the cost.

I’m ready, now who do I call?

I used Tracey Day (512-966-7246) with Home Source Mortgage in Georgetown, Texas and he worked like a dog to get all of my paperwork done.  Because of my investment properties, I had a debt to income in the low 50% range and so he had to be real creative with justifying it financially!  Usually, the banks scrutinize anything over a 46% debt to income ratio.  So if you need some help in this area, Tracey Day has been worked over with my file and should be very experienced with just about anything now:)  If you are curious about how your home will do during the appraisal process, he can connect you with some appraisers to give an opinion of your home’s value.  I used Pat Carey with the Georgetown Appraisal Group (512-750-8480).

So tell me about your experience….were you able to shave your budget through a recent refinance? Anybody out there beat $300/month? I’d love to hear your story! Want the latest updates on Georgetown Texas Real Estate, news and latest developments? Sign up for the blog by clicking the link below:

Georgetown, Texas Real Estate Blog

Top Ten Reasons to buy a home in Georgetown, Texas

529w

Top Ten Reasons to buy a home now.

The combination of low interest rates and decreased housing prices represents a great investment opportunity.

By Alamo Title www.alamotitle-austin.com, submitted by Ysolette Nicoson

1. Selection – Homes are available in every area and at all price ranges. The quantity of houses on the market allows you to pick and choose the qualities you want to find just the home you want. It wasn’t so long ago that buyers were jumping on new listings as soon as they came onto the market, that is no longer a concern for buyers in this economy.

2. It’s a buyer’s market – The best time to buy is when most people want to sell. If you buy now you can get a lot more house for your money, and you have a lot more negotiating power.

3. Homes are more affordable – Real estate, which was overpriced during the housing bubble, has returned to earth. That’s especially good news for first-time home buyers who were priced out of the market four or five years ago.

4. Interest rates are low – Mortgage interest rates are at their lowest point in the last several years. This means your mortgage payment takes you a lot farther than it did before. We’re not that far off of the all time lows we hit several years back. It is smart to take advantage of the low mortgage rates while they are still available.

5. Tax savings – Buying a home is one of the best ways to save money on taxes. Your mortgage interest, real estate taxes and in many cases mortgage insurance are all tax deductible. If you are a first time home buyer this means that after-tax, you can pay a lot more for a mortgage payment than you pay for rent.

6. Appreciation– This might not seem like the best reason to buy, with prices stagnating and falling in some areas, but in the long run, home prices always move up. There is a lot of pessimism in the real estate market today, but even the most pessimistic are bullish in the long run.

7. Equity build up– As you pay down your mortgage you build up equity in your home. Most people don’t even think of this because it is so gradual, but every mortgage payment (as long as it is an amortizing loan) pays a little less interest and a little more principal. In a way owning a home is a form of forced savings.

equity-management
8. Rents are rising – Buying a home means you can fix your mortgage payment, at least the principal and interest portion. Rents are projected to rise this year and over time.

9. Lots of homes are Move-In Ready – In order to sell a home in a tough buyer’s market, sellers have to put their best foot forward. This means sellers will paint, landscape, and do any necessary repairs to make their homes look the best as compared to their competition. For a buyer this means, you are getting a nice looking home with no maintenance issues to take care of.

10. Incentives – Buying in a buyer’s market gives the buyer the upper hand. As a buyer, you may ask the seller to sell you their washing machine, refrigerator or pool table. In addition to material things, you can ask the seller for a homeowner’s warranty, lawn or maid service for six months to a year, etc.

What do you think, buy or wait?  This blog is boring without reader interaction, I value your comments! Want the latest updates on Georgetown Texas Real Estate, news and latest developments? Sign up for the blog by clicking the link below:

Georgetown, Texas Real Estate Blog

Looking for a change? – Georgetown Texas market update

There is over 6 months of inventory in Georgetown, TX. Yeah, I’d say it’s a buyer’s market. So, if you’re looking to change your surroundings and buy a home now is a good time.

Advice to sellers: Don’t sell if you don’t have to. If you have to sell, price AHEAD of the market or else your home will just sit there. Or if you want to upgrade, then sell. You might not make as much as you wanted, but hey, if you’re staying in the area you’ll be able to take advantage of the market as a buyer

Advice to buyers: It’s time to buy! Prices are expected to continue to decline, but many analysts are expecting that to taper off by the end of the year. Buy an investment home. Or buy the home you’ve been wanting to get, but have been holding off….or do both!

This market is solid and for long-term owners, you have nothing to fear. I’m following my own advice and have been trying to buy as many investment homes as I possibly could over the past 2-3 years. I’ll continue to do that because I’m a big believer that the Georgetown Texas real estate market has a strong foundation. In fact, I think I will do both! More on that in a future post:)

Here’s a Credit Suisse June housing report on the Austin market you might find interesting.

Austin, TX – Modest Price Declines Likely to Continue
(12,137 single-family permits in 2007, 13th largest market in the country)


Buyers continue to wait for better deals. Our buyer traffic index fell to 25.0 in May from
30.0 in April, indicating deteriorating traffic, below agents’ expectations (readings below
50). Agents said an expectation of further price declines seems to be the main impediment
holding many potential buyers back (although recent fears about the economy and
employment outlook are also key drivers of weak traffic levels). In addition, several agents
noted increased competition from homebuilders who are undercutting re-sale pricing.
Austin has remained relatively healthy compared to many markets given limited price
declines, but we see increasing risks based on rising inventories and a longer time to sell.
We expect that buyers will likely continue to wait on the sidelines for the near future.

Prices fall modestly; rising inventory points to further declines. Our price index
improved to 41.7 in May from 26.7 in April, still indicating modestly lower prices as
compared with last month (readings below 50 point to lower prices over the past 30 days).
Agents noted an increase in REO listings adding to existing inventories and continuing to
weigh on home prices. Our home listings index measured 29.2 in May (from 13.3 in April)
below a neutral reading of 50. Buyers are also increasingly aware of the growing inventory,
as nearly all agents noted a longer time needed to sell a home in May relative to April. We
generally view a longer time needed to sell as a negative indicator for future pricing trends,
as sellers typically reduce their asking price the longer their home sits on the market.
Comments from real estate agents:


■ “Families are cutting back on expenses to make ends meet, and are rethinking
whether they want to move-up to a larger home or stay where they are.”
■ “New home builders are capturing buyers who typically would have purchased an
existing home.”

Interested in keeping up with the latest Georgetown Texas real estate market updates? Subscribe to this blog!

Top 15 tracts for residential development in Greater Austin

WANTED: Residential developer with $1 – 2 Million looking for 100 – 200 acres in Central Texas. Must be willing to take risks. Must be willing to travel. Enjoying the local BBQ is optional, but highly recommend.

LOCATION: Greater Austin:

According to the newspapers and TV, it’s a horrible real estate market. Nothing is selling and prices are stagnant. What better time then now to pick up land for a great bargain and have it ripe for building when the market recovers? Land in Texas is probably cheaper than most anywhere in the country and it’s definitely not getting cheaper. Here are the top 15 locations in the Greater Austin area today:

1. Bastrop – 120 FM 20 at Lone Star Road – $1,200,000 – 120 Acres

2. Bastrop – 429 Foothill Road – $1,649,000 – 194 Acres

3. Bertram – 4 Whitewater Springs – $1,500,000 – 101.42 Acres

4. Elgin – 2681 FM 1704 – $1,550,000 – 155.37 Acres

5. Georgetown – CR 242 – $1,611,000 – 179 Acre

6. Dripping Springs – 2201 Lost Creek Road – $1,350,000 – 100 Acres

7. Buda – 5142 Satterwhite Road – $1,290,000 – 129 Acres

8. Liberty Hill – 17580 Hwy 29 – $1,300,000 – 132.24 Acres

9. Liberty Hill – CR 204 – $1,560,500 – 256.31 Acres

10. Leander – 24601 Bingham Creek Road – $1,250,000 – 103.08 Acres

11. Manor – 21707 Hogeye Road – $1,328,000 – 166.17 Acres

12. Manor – 12719 Jacobson Road – $1,373,000 – 106.42 Acres

13. Manor – 14401 Bois D Arc Lane – $1,570,000 – 100.05 Acres

14. Manor – 17334 Blake Manor – $1,852,500 – 130.32 Acres

15. Taylor – 1150 CR 405 – $1,150,000 – 112 Acres

CLICK HERE for more pictures and details on these listings

If there is a particular property you are interested in, give me a call and I’d be happy to help you determine, through the Multiple Listing Services, the approximate absorption rate of lots and homes in that area, how much inventory is on the market and other questions to help with your investment decision.

If you’re looking for lots in Georgetown, Texas or homes in Georgetown, Texas visit my property search page on my website for the latest inventory available.

Gabriels Overlook: June Sales Report

Click here to view: Gabriel’s Overlook Sales Report

Georgetown Village: June 2007 Sales Report

Click here to view: June Sales Report

Georgetown Village: May 2007 Sales Report

Click here to view:  May Sales Report

Gabriel’s Overlook: May 2007 Sales Report

Click here to view: Gabriel’s Overlook: May 2007

Georgetown Village: April 2007 Sales Report

Click Here To View:  Viilage Sales Report 2 – Apr.doc

Gabriel’s Overlook: March 2007 Sales Report

Click Here To View:  Gabriels Overlook Sales Report – Mar.doc

Community information on Gabriel’s Overlook

Facebook Auto Publish Powered By : XYZScripts.com