Will You Need Private Mortgage Insurance On Your Edison, New Jersey Real Estate?

Chances are, if you’re going to buy Piscataway real estate, you’re going to need a loan. Traditional lenders prefer a down payment of twenty percent. When you’re looking at a $320,000 house, which was the Middlesex county median sales price for January that can be a lot of money to come up with at once. The good news is that there are some options for you, if you can’t afford such a large down payment.

The 80/20 Option

Some lenders will offer an 80/20 mortgage option. It means that you take out two loans, one for eighty percent of the Piscataway real estate price, and a higher interest loan for the other twenty percent. Taking out this kind of mortgage means that you won’t have to come up with a down payment.

The 100 Percent Option

There are lenders that offer 100 percent mortgages. They’re a little harder to get these days because of the recent credit crunch. There’s no down payment needed, but the interest rate is higher. Because the lender is at a greater risk of loss from default on this type of loan, you will be required to carry private mortgage insurance (PMI).

Private mortgage insurance is paid as part of your monthly mortgage payment. You’re required to pay for it until you’ve reached twenty percent equity in your house. In some cases, it will be canceled automatically, but check with your lender to be certain it's canceled.

Why Wouldn’t I Want A No-Money Down Loan?

A no-money down loan means higher interest rates and higher payments. It’s harder to find a lender that offers this type of loan. Generally, the more money you put for a down payment, the higher loan amount the lender will offer. If you don’t put any money down on the house, you’re likely to get approved for a smaller loan amount. You may have to settle for a house that is less than you wanted.

More Help?

Yes, there are also programs offered by Middlesex County, the state of New Jersey and others to help First Time Home Buyers just like you with their down payments. The Stimulus Bill is additionaly offering $8,000 Tax Credit for qualifying First Time Home Buyers.

Why Buy Now?

In recent history, there's never been a time as perfect as this to buy Piscataway real estate. With interest rates at the lowest they've been in decades, and the price of houses the lowest they've been in years, you'll be able to get much more for your money.

Need help understanding mortgage and real estate terms? Subscribe to my blog today! You'll get also money saving home maintenance and staging tips, local real estate tips, info and statistics 4 to 6 times a week.

Cathy Chaudemanche

Realtor Associate/Keller Williams Realty

Metuchen, NJ

Servicing Home Buyers and Sellers in Middlesex County, NJ

http://www.YourHouseFast.com

Why the Stimulus Makes This a Great Time for First-Time Iselin, New Jersey Real Estate Buyers

There are great incentives for first-time Iselin real estate buyers. Big tax incentives and money put into the banking and financing industries to give buyers more availability to loans makes now the best time to move when looking for a Jersey home. This environment won't last—exactly. Some of the elements put in place are geared toward a strong future for the housing market, but many of the advantages are only good for now.

Tax Relief

First-time Iselin real estate buyers, meaning those who have not owned a home in the past three years, are eligible for a big tax break on income taxes. Next year at tax time all buyers have to do is report the new home purchase to get $8,000 dollars back. That's a big incentive. The drawback is it’s only good for this year. It is retroactive to the beginning of 2009 so even if you have already bought that home you can still claim it, but if you drag your feet hoping for better mortgage financing, or just a better time for your family to get a new home, you will miss out after December 31, 2009.

Affordable Housing

Right now is the time to buy because of prices, too. Thanks to the failings of the housing market, there are tons of homes for sale at prices they would not normally be listed at. If the stimulus plan improves the economy the way it is hoped it will, that won't last. That's great news for home owners, but not great for those who wait to take advantage of the greatly reduced home prices.

Iselin real estate buyers need to take advantages of all that 2009 and the current real estate market have to offer. There are great deals that will never happen again—hopefully.

How To Showcase The Bathroom In Your Metuchen, New Jersey Home For Sale

A bathroom renovation is one of the best things you can do for a Metuchen home for sale. But, remodeling a bathroom is an expensive project, and in today's market you aren’t likely to get all the money back that you put into it. So, here are a few inexpensive changes you can make to spruce up the bathroom:

Fixtures

Most sellers will notice if the fixtures in the bathroom are old, and it can have a negative effect on their view of your Metuchen home for sale. Buy a set of bathroom fixtures at a home improvement store. Most stores have matching towel racks and bathroom tissue holders, too. There is a good selection of stainless steel, wood or ceramic fixtures available at most stores.

Paint

A fresh coat of paint is a good way to improve the overall look of the bathroom. Choose paints in a light, neutral color to make the room seem more spacious.

Floors

If your bathroom floor has tiles, it’s a good idea to add fresh grout to brighten it up or at least clean the grout so it looks new. Scratched linoleum will need to be replaced. You can buy rather inexpensive flooring that is easy to install in a variety of patterns and colors.

De-Clutter

You want the prospective buyers to be able to imagine themselves living in your Metuchen home. It’s easier for them to do that if your home is free of clutter. This is even true in the bathroom.

Clear out your medicine cabinet. (Yes, many buyers will look in there.) Leave only essentials like toothpaste and hairbrushes.

Making a good impression on your prospective buyers can be easier when you’ve redone your bathroom. You don’t have to spend a lot of money to increase the value of your Metuchen home for sale.

How Can You Use Green Building Materials in Your Piscataway (New Jersey) Homes

We’ve all heard about going green in our Piscataway homes, and perhaps you’re ready to start now. Going green means to adopt a lifestyle that doesn’t harm the environment. You should try to reduce the non-renewable energy sources that you consume; this includes the building materials you use. Going green doesn’t mean that you’ll have a tough time finding supplies; most home improvement stores in New Jersey have departments devoted to green construction materials.

A good place to begin your green building projects is with the flooring in your Piscataway homes. Green flooring is usually made from recycled or renewable products. Here are a few suggestions for green floors:

• Recycled carpeting. Traditional carpeting is made from nylon and emits volatile organic compounds (VOC), which are harmful to the environment and your health. Most recycled carpeting is stain resistant, and comes in a variety of long lasting colors.

• Linoleum floors. Linoleum is made from natural raw materials, and is stain resistant. The flooring is biodegradable after about forty years.

• Bamboo flooring. You shouldn't use bamboo anywhere that may get wet. Bamboo is very versatile and can be used in many types of floors. For the best results, you should spend the extra money on quality durable bamboo.

• Cork flooring materials. You can use cork, which is made from the bark of trees removed without causing lasting harm to the tree. Cork flooring cannot be installed where there is a possibility of moisture, and it scratches easily. Cork flooring can come in a variety of patterns and colors. You could use old cork flooring as padding under carpeting instead of foam.

• Reclaimed hardwood flooring. You may be able to locate hardwood flooring that has been salvaged from older buildings. Industrial salvage companies have the woods sorted according to type and length. You might be able to have the hardwood floor of your dreams, and recycle at the same time.

Going green in your Piscataway homes can be easier than you think. You just have to start somewhere…

How the Stimulus Bill Can Help You Get a Piscataway, New Jersey Home

There are several indications that the new stimulus bill passed by Congress will have a positive influence on the struggling housing market. If you are considering buying a Piscataway home for the first time the stimulus plan may help make that happen.

How the Stimulus Bill Stimulates the Bottom Line

The biggest effect the stimulus plan will have on new home buyers is a tax incentive. We all want to get more money back on our tax returns and the stimulus bill has an $8,000 tax credit for first-time home buyers purchasing a home.

How You Qualify

In order to qualify for the stimulus tax incentive you must:

• Not have owned a home in the past three years.

• Use the new home as your primary residence.

• Have an income of less than $75,000 per person or $150,000 per couple.

No action is necessary other than reporting the purchase on your income tax filings. You must keep your home for at least 36 months in order to not have to pay back the incentive in the following tax year. If, however, you keep your new home for 36 months or longer you never have to repay the incentive.

There is no cap on return for this incentive either. Even if you would not normally be entitled to the full amount according to your taxable income level you will still receive the entire $8,000 amount in return.

Stimulating Interest on Piscataway Home Purchases

The stimulus bill also gives first-time home buyers a chance to get into those big ticket houses. Houses with market values over $417,000 will be eligible for lower interest rates to make them more affordable. The luxury home industry has stagnated in the failing real estate market and this should give it a vital boost.

President Obama's stimulus plan is serious about improving the housing market. The bill gives people looking to buy a Piscataway home reason to hope.

Need help understanding mortgage and real estate terms? Subscribe to my blog today! Or Bookmark my main Blog Here. You'll get money saving home maintenance tips and local Real Estate tips, info, news and statistics 4 to 5 times a week.

Cathy Chaudemanche

Will You Need Private Mortgage Insurance On Your Edison, New Jersey Real Estate?

You may have heard the term Private Mortgage Insurance (PMI) when looking to finance your Edison, New Jersey real estate. What is PMI, and how do you know when you need to purchase it? The answer can be hard to find among all the real estate jargon you’re hearing lately. Here is the short version of what you need to know about it:

What Is Private Mortgage Insurance?

PMI is an extra insurance required by some lenders to offset their risk of you defaulting on your home loan. When you put down less than 20 percent of the real estate’s value, your lender may tell you that you have to buy PMI. It is usually added into your monthly mortgage payment until the equity in your Edison real estate reaches 20 percent.

Under the current law, the PMI will be canceled automatically at 22 percent equity, if you are current on your payments. If you aren’t current, the lender does not have to cancel the insurance because the loan is high-risk. After getting caught up on your payments, the PMI will be cancelled. Any money that you have overpaid must be refunded to you within 45 days.

What If Your Edison Real Estate Increases In Value?

With a conventional loan, it may take as many as 15 years of a 30-year loan to pay down 20 percent. But, if property values in your area rise, you might be able to cancel the PMI sooner.

Some lenders may be willing to consider the new value of your home to determine the equity in your home. You may be responsible for any fees like an appraisal that may occur. You’ll have to weigh the costs of the appraisal against the savings of the PMI premium. In most cases, you’ll find that the added expense is worth it.

Private mortgage insurance is a good thing if you can’t afford to pay 20 percent of the cost of your Edison real estate as down payment.

Need help understanding mortgage and real estate terms? Subscribe to my blog today! Or Bookmark my main Blog Here. You'll get money saving home maintenance tips and local Real Estate tips, info and statistics 4 to 5 times a week.

Cathy Chaudemanche

Realtor Associate/Keller Williams Realty Metuchen, NJ

Servicing Home Buyers and Sellers in Middlesex County, New Jersey

http://www.yourhousefast.com/

The President's stimulus plan has many hoping for a ray of sunshine in Metuchen real estate market. Here are a few ways the new plan can help give the New Jersey market a shot in the arm:

· The stimulus plan includes a financial boost for the mortgage industry to help with new loans on housing.

· There is a tax incentive included that will give first-time home buyers a huge tax break.

· 50 billion dollars targeted at bailing out failing mortgage institutions means there will be financial opportunities for home buyers.

Along with the stimulus plan, home sellers are getting creative in selling their homes. Making sure their properties are in excellent condition and have good curb appeal is more important than ever before. Selling your Metuchen real estate is easier, faster and more profitable for you if your home is appealing as possible.

Tips to Help Home Sellers:

· Clean up the clutter. Get rid of the things you don't absolutely need. We all have much more in our homes than we actually use. If you don't want to throw it away, put it in storage until you get into your new home.

· Spruce it up. A fresh coat of paint and a good steam cleaning for the carpets goes a long way toward making your home more appealing.

· Create curb appeal. If the exterior of your home is unattractive, buyers will drive away without looking inside. Clean or paint your front door and trim your lawn and bushes. Another inexpensive way to update your home's exterior is to replace old hardware such as house numbers and overhead light fixtures.

· Price it right. Ask a local professional real estate agent in Metuchen for his/her opinion on a good price for your home. There is no room for sentiment in the current housing market.

Need help understanding mortgage and real estate terms? Subscribe to my blog today! Or Bookmark my main Blog Here. You'll get money saving home maintenance tips and local Real Estate tips, info, news and statistics 4 to 5 times a week.

Cathy Chaudemanche