Sayreville & Piscataway NJ Real Estate Blog

Potential first time homebuyers are racing the clock to find the perfect Mercer & Middlesex County NJ homes for sale. Who’s going to reach the finish line first?  And… why are they racing?

 

Many of you have probably heard of the American Recovery and Reinvestment Act of 2009 (ARRA) by now. For those looking for Mercer & Middlesex County NJ homes for sale that haven’t heard of the ARRA, first time homebuyers can receive up to $8,000 back in tax credits from the

U.S. government. Singles and those married but filing jointly, have an $8,000 threshold, while married individuals filing separately have a $4,000 threshold.

 

Sounds wonderful, doesn’t it? With the tax credit, your taxes are matched dollar-for dollar. This means, if you owe $9,000 in taxes for 2009 and get the full $8,000 tax credit, you’ll only owe $1,000 in taxes. That’s quite a bit of money to save, especially now. Better yet, if you don’t owe anything, that tax credit may become a tax refund - $8,000 of refund, to be exact.

 

With all the homes available, why are first time buyers racing? Aren’t there enough homes to go around? Of course there are – in fact, millions of homes in the

U.S. are waiting for a buyer. However, first timers want to take advantage of the tax credit, and it only goes until April 30, 2010.

 

You may think that’s still plenty of time, but it’s not, really. To qualify for the tax credit, you have to have the keys to your new house in hand and the sale finished by the ARRA ending date.

 

Should you be racing, too? Well, that depends. If you want to buy one of the Mercer & Middlesex County NJ homes for sale, can realistically afford it and have been waiting for the best time, that time is here and almost past. However, if you want to buy a home, but can’t afford it yet, don’t let the tax credit push you into a tight monetary situation you can’t get out of. Take the time to build up equity and savings until you can buy a home you can afford!

 

If you’re a first time buyer wanting to take advantage of the tax credits, I can help. Call me now at 732-247-1935 ext 182 or email me at freddie@freddiemoorer.com.

 

Links:

American Recovery and Reinvestment Act of 2009

http://www.irs.gov/newsroom/article/0,,id=204335,00.html

 

Waiting for a buyer

http://bloomberg.com/apps/news?pid=20601110&sid=an17jgiccivM

 

Home you can afford

http://cgi.money.cnn.com/tools/houseafford/houseafford.html

Everybody wants to know how the housing market is doing, especially if they own Mercer & Middlesex County NJ real estate. I try to keep the newsy pieces to a minimum and spend most of my Internet space on helpful pointers, but a lot of readers have asked about the market. In response to high demand, here’s a peak at the current national foreclosure trends:

 

Foreclosure Trends

It’s a wonderful thing to own any kind of real estate (although I’m partial to Mercer & Middlesex County NJ real estate, of course). Unfortunately, many people have lost their homes due to foreclosure since the housing crisis started; there have been over 7.8 million since 2007.

California,

Florida,

Arizona,

Nevada,

Illinois and

Michigan have been topping the count for foreclosures, adding up to 62% of the nation’s foreclosures.

 

California’s numbers reached 349,435 foreclosures last month, and it was feared that those numbers might escalate. However, there’s some good news there. Even though homeowners are still teetering, lending institutions are caving in under government pressure to work with those homeowners. For that matter, they may even be working with the government to stem the deluge of foreclosures.

 

HousingPredictor.com conducted a survey of homeowners that shows we may have as many as 25 million foreclosures before everything is said and done, mainly due to homeowners who are tired of watching housing prices fall. Such a glut of the market could cause some serious repercussions for the economy. However, again, there are some positive points.

 

For instance, current mortgage interest rates are ranging from as low as 4% to 5.5%, cut almost in half from the “housing boom” years. While housing prices may be dropping, the fall is slowing down. As well, lower prices mean more affordable homes. While this may not be a good thing for homeowners, it’s an excellent thing for home buyers.

 

As prices drop and homes become more affordable, the glutted housing market of foreclosed and for sale homes is slowly shrinking. As the reserve market (the number of houses per capita that are for sale) shrinks, consumer confidence will build up (something we desperately need). Housing demand will rise, surplus will shrink, and prices will stabilize.

 

Of course, in the meantime, while you’re waiting for things to stabilize, hold on to your Mercer & Middlesex County NJ real estate. Take advantages of the tax breaks available to upgrade your existing property, maybe get the renovations done you’ve always wanted. There are still opportunities in this market – you just have to find them!

 

If you’re a buyer looking for a great home, act now to find amazing bargains.  I can help. Call me at 732-247-1935 ext 182 or email me at freddie@freddiemoorer.com for more information.

 

 

Links:

Stem the deluge

http://www.latimes.com/business/la-fi-foreclosures21-2009oct21,0,5605171.story

 

HousingPredictor.com

http://www.housingpredictor.com/epidemic.html

 

slowing down

http://www.bloomberg.com/apps/news?pid=20601087&sid=a6f3TaKJxPAQ

Yesterday, I was driving through the city, wondering if a potential buyer was going to show up to look at some Mercer & Middlesex County NJ condos I’m showing. I’d had a bad day; the car didn’t want to start, what I’d planned to wear was dirty, I’d run out of milk and so on, and so on. Needless to say, I wasn’t in the best of moods.

 

As I stopped at a light, grouching because the light would make me late, I happened to look over and see a woman with her daughter. The little girl had holes in her coat, a ragged hat, torn up shoes and a teddy bear missing an eye that she clutched as she smiled up at her worried mother – who had a “Please help” sign in her hands. As I drove on to show the Mercer & Middlesex County NJ condos, and further throughout the day, that little girl’s smile stuck with me.

 

Last night, I came across a news broadcast about a family of five living in a one-room apartment after losing their house and I remembered that little girl. All of this comes down to one thing…

 

It’s coming up on Thanksgiving, people are searching turkey recipes, decorations are being pulled out… and the current problems in the world make it hard to find something to be grateful for. However, they’re there if you only look.

 

If you have a home and you’re trying to sell it, it’s understandable that you might be upset if it’s not moving. As hard as it may be, however, remember that at least you have a home to sell.

 

If you’re looking for a home to buy and you can’t afford the fancy one you wanted but you can afford a slightly smaller one, remember – at least you can afford something.

 

If you’re upset that your job isn’t paying enough, you’re working long hours or not enough, remember the millions that no longer have a job.

 

Whatever your problem that may be weighing you down when Thanksgiving rolls around, remember that it truly could be worse. It is worse, for so many people.

 

I’ll even start the list: I’m grateful for all of my clients. I’m grateful that I have Mercer & Middlesex County NJ condos and homes to show and potential buyers that want to see them. For my readers, my friends, my family and my own home… Happy Thanksgiving, and may you always have something to be grateful for!

 

 

Links:

Turkey recipes

http://allrecipes.com/Recipes/meat-and-poultry/turkey/Main.aspx

 

Decorations

http://familyfun.go.com/thanksgiving/thanksgiving-craft-decorations/

Even those with a steady job and sufficient income are cautious about signing their mortgages for Mercer & Middlesex County NJ homes for sale. They realize that signing mortgages set them up with payments for a significant amount of their lifetimes. Others worry, especially now, about losing their jobs in an unstable economy. The “what if” game begins, and potential homebuyers know that, if they lose their job, there’s a very real possibility they might lose their home.

 

Job-loss mortgage insurance gives homebuyers a “fallback plan” should they ever lose that stable income. It’s a definite relief to many who want to buy Mercer & Middlesex County NJ homes for sale, but can job-loss mortgage insurance really help homeowners? Or, is it just another way to swindle the innocent out of hard-earned money?

 

What is it?

Job-loss mortgage insurance is exactly what it sounds like. Some insurance companies offer an insurance plan to help you pay your monthly mortgage payment should you lose your job. Although it’s been around for years, the big companies, such as Bank of America and GE Casualty, have begun picking it up in the past 10 years,.

 

How does it work?

Job-loss policies pay all or part of your mortgage payment if your job loss is involuntary, and some pay if you become medically unable to work. Policies vary depending on the provider, but most go into action after a month of unemployment. Most also have a wait period which means they won’t pay out during the first six months after you’ve purchased the policy.

 

Maximum monthly benefits, what the policy covers and whether you have to be receiving unemployment benefits are just a few things to look over while researching providers. As usual with anything insurance, make sure you read the fine print.

 

Is it worth it?

A lot of financial advisors say not to bother with the job-loss mortgage insurance. Take the money you’d be spending on insurance and build a savings account to hold six months worth of payments. However, many first-time home buyers have depleted their reserve funds just to get the house, and may not have the money to put aside.

 

My advice to you…

If you’re interested in buying one of the Mercer & Middlesex County NJ homes for sale, but you’re worried about your job stability, look into job-loss mortgage insurance. Once you have the facts, policy information and coverage costs, figure it into your finances (payments for coverage vs. building a six-month fallback account) and decide what’s best for you.

 

If you’re looking for a beautiful home at a price you can afford, I can help. Call me at 732-247-1935 ext 182 or email me at freddie@freddiemoorer.com for more information.

 

 

Links:

Mortgage payment

http://www.trulia.com/blog/helen_oliveri/2009/07/job-loss_mortgage_insura

 

GE Casualty

http://community.seattletimes.nwsource.com/archive/?date=20021020&slug=homeharn20

 

Job-loss mortgage insurance

http://www.insuranceagents.com/homeowners-insurance/job-loss-protection.html

Owning a Mercer & Middlesex County NJ home can be a sign of independence and success.  It allows you to build up equity and the mortgage interest and property taxes are tax-deductible.  Can you afford it, though? 

 

Reputable lenders look at a list of criteria to decide how much they’ll loan you.  This list includes:

·                     Credit score

·                     Existing assets including cash

·                     Car leases or loans

·                     Credit card balances

·                    

Debt consolidation loans

·                     Home equity loans

·                     Installment loans

·                     Student loans

·                     Other monthly debts

·                     Size/source of your down payment

 

If you’d like to get an idea of what you can afford before talking to a lender, here are a few tools you can use to decide whether a Mercer & Middlesex County NJ home is within your budget:

 

• As a rule of thumb, your house hunting budget shouldn’t be more than 2.5 times your pre-tax annual income.  If you earn $50,000 a year, your budget for house hunting should be around $125,000.

 

• Your Housing Expense Ratio, which is principal, interest, taxes and insurance (PITI) shouldn’t be more than 25% to 28% of your pre-tax monthly income.

 

• You’re Debt-to-Income Ratio should be no more than 36% of your pre-tax monthly income.  This is the ratio between how much you owe and how much you earn.

 

• Use an online calculator to figure how much home you can afford.

 

“Qualifying for” and “can afford” are two different things.  Shopping for a Mercer & Middlesex County NJ home within your budget will save you a lot of heartache now and in the future.

 

If you’d like help determining how much mortgage you can really afford, I can help.  Call me at 732-247-1935 ext 182 or email me at freddie@freddiemoorer.com for more information.

 

 

LINKS:

 

Housing Expense Ratio: 

http://www.mortgageqna.com/mortgage-costs-fees/housing-expense-ratio.html

 

Debt-to-Income Ratio:

http://www.lendingtree.com/mortgage-loans/advice/qualifying-for-a-loan/calculating-debt-to-income/

 

figure how much home you can afford: (link to the calculator on your website or use this link)

http://www.lendingtree.com/smartborrower/loan-calculators/

 

There are many different ways to update your Mercer & Middlesex County NJ home to make it more eco-friendly. 

• In your Mercer & Middlesex County NJ home, install ceiling fans and thermal windows.  Ceiling fans are low energy, cost effective ways of cooling your home without using the air conditioning.  Thermal windows offer insulation from outside heat and cold. 
• Use foam caulking around any cable lines or cords leading to an exterior wall.  This will provide insulation against temperature changes.

• In the winter (or in climates that are cool year round), use the natural sunlight during the day.  Opening the drapes and allowing the sun to come in decreases the amount of energy needed to light and heat your home.  Closing the drapes at night adds another layer of insulation against temperature changes.
• Installing motion sensors on your light fixtures may help to decrease energy usage as well.  The lights will shut off automatically when not in use. 
• Use a power strip that has an on/off switch.  These power strips can be used for video games, stereos, DVD players, and other items that are not in use on a constant basis.  Turning off the switch when they are not in use saves energy. 

If you’d like to buy an eco-friendly home, I can help.  Call me at 732-247-1935 ext 182, or email me at freddie@freddiemoorer.com for more information.

Links:

Thermal windows: http://www.thermalwindows.com/

Foam caulking:  http://www.energystar.gov/index.cfm?c=home_sealing.hm_improvement_sealing

Motion sensors: http://home.howstuffworks.com/home-improvement/household-safety/security/question238.htm