Home Loans 101

Posted by Duke Rountree on

Home Loans 101

"Image courtesy of Stuart Miles / FreeDigitalPhotos.net"
“Image courtesy of Stuart Miles / FreeDigitalPhotos.net”

It is a fact there are fewer opportunities available for mortgages today, than during the housing boom years. However, there are many options still available in todays market and we will discuss the different types of home loans available.

#1 Fixed or Adjustable Rate Home Loan

  • Fixed-Rate: This type of loan carries the same interest rate for the entire length of the loan and the interest portion of payment is included in monthly payments. In short, this type of mortgage guarantees fixed interest rate and fixed monthly mortgage- for entire life of loan.
  • Adjustable-Rate(ARM): Also called a “hybrid” loan because they start with a fixed rate for a certain period of time and after that period, the rate will start to adjust.

#2 Conventional or Government Loan

  • Conventional: not insured by the government in any way and is made in the private sector with no form of government backing. If you can afford a 20% down payment, you can avoid mortgage insurance which is required on loans that make up more than 80% of the purchase price.
  • Government: these types of loans are actually government-backed loans and insured by some type of federal agency

-FHA mortgage requires 3.5% down, is more lenient than conventional loans and could be the best option for below-average credit score or other qualification problems.

-VA mortgage is reserved for military service members and their families. It can be used to finance 100% of the home purchase, eliminating the need for a down payment.

-USDA mortgage is reserved for people who live in certain parts of the country. There are also income restrictions as well and designed for low-income residents of rural areas.

So.. what is the right type of mortgage for you? Start by answering these few questions and you will be on your way to find your perfect mortgage. How much do I have for down payment? What is my credit score? How long do you plan on living in home?

This article is not all-inclusive and should only be used as guide. I would encourage you to make a phone call or visit one our of local REALTORS offices for additional information and a referral to a trusted loan professional in the area. The more information you learn, the easier it will be to find the right loan type for your needs.

GOOD LUCK!!

 

HOT Sales Activity in Ocala

Posted by Duke Rountree on

Today I am going to be talking about a few areas of Ocala experiencing a little heatwave on our “Trend Maps.” Something we have not been experiencing for the last couple weeks here in the Horse Capital of the World, Ocala, Florida. What are trend maps? A trend is a general direction something is going and combined with a map provides a look at “Sales Activity” based on zip codes. The statistical data is overlaid onto a map and provides a more visually geographical representation compared to simple data chart. The trend map included here shows the “HOT” areas for “Sales Activity” right now are 34472(Silver Springs Shores), 34476(Shady Hill area, Ocala), 34481(Leroy area, Ocala) and 34491(Summerfield.)

34472,34476,34481,34491,
Sales Activity Map Trend for Ocala, FL

I also thought it would be interesting to look at the median DOM(Days on Market) to contract, for these same zip codes. Notice the trend for most of the zip codes have gone down from the same time last year. The only zip code experiencing a longer days on market is Silver Springs Shores area due to the higher foreclosure rate and over supply. So we are seeing these areas experience higher sales activity and less days on the market to contract. If your a seller it is a great time to “SELL.” If your on the fence about selling it might be time to talk to a great local REALTOR, me, and find out if the time is right for you. If your a buyer and you want to buy in one of these zip codes, It’s time to get with your preferred lender, get on the phone, text or email me.

Days On Market To Contract
 

 

CHOOSE A SEASONED REALTOR PROFESSIONAL TO SELL YOUR HOME

Posted by Duke Rountree on

MLS_Clear

WHY CHOOSE A SEASONED PROFESSIONAL? WE HELP YOU SELL YOUR HOME FAST AND FOR TOP DOLLAR….

There’s nothing wrong with saving a few cents here or there, but when it comes to seeking medical help, building a decent stock portfolio, or dealing with something as ugly as an IRS audit, it’s better to seek out a professional’s advice.

Buying or selling real estate also fits in that category. Remember, you’re dealing with one of the largest assets you’ll ever own! Don’t waste time doing it the “self-service way.” This is an important and life-affecting decision! To insure a fast sale for top dollar or to find a home that matches your criteria for a reasonable price, work with a seasoned professional.

I have nearly 13 years of experience working with buyers and sellers right here in Marion County, and I’ve earned several of advanced learning designations including Graduate REALTOR Institute, At Home With Diversity, GREEN  available to real estate agents. In fact, I’m one of just a few agents in the area with a broker’s license. What does that mean for you? My advanced education and experience helps me zero in on your highest priorities, create innovative and effective marketing programs guaranteed to attract attention to your home, and put transactions together for a worry-free closing day.

I have lived in the Marion County area since 1986, and my family has owned property on Lake Kerr & we vacationed here since the early 70’s. I have a passion and desire to be the TOP RESIDENTIAL REALTOR® in the area.

Over the years, I have helped hundreds of families buy and sell real estate. I will be happy to provide you with a long list of satisfied clients who attest to my professionalism, my expertise, and my attention to every detail.

 Call me today at 352-572-1739 for a FREE, no-obligation report on “How to Prepare Your Home for Sale.” No hard sale, just solid ideas to put more money in your pocket.

 John Wayne “DUKE” Rountree / GRI, TRC, AHWD, GREEN

 

Fla.’s top 10 consumer complaints for 2013

Posted by Duke Rountree on

Fla.’s top 10 consumer complaints for 2013

"Image courtesy of Stuart Miles/ FreeDigitalPhotos.net"
“Image courtesy of Stuart Miles/ FreeDigitalPhotos.net”

TALLAHASSEE, Fla. – Jan. 8, 2014 – The Florida Department of Agriculture and Consumer Services released the top 10 consumer complaints filed with the state this year. Landlord/tenant issues and real estate broker/salesperson issues ranked No. 5 and 6, respectively.

Complaints about violators of the Do Not Call list – a service where consumers register their phone number to limit business phone calls at home – have topped the list for four consecutive years. This year saw an increase of more 1,000 complaints growing from 17,772 in 2012 to 18,862 in 2013. The increase in complaints is consistent with the increase in subscribers to the Florida Do Not Call List.

Overall, consumers filed 47,226 complaints with the department’s 1-800-HELP-FLA consumer hotline from Jan. 1 through Dec. 20, 2013:

1. Do Not Call – 18,862
2. Telemarketing – 3,626
3. Fuel – 2,708
4. Communications – 2,339
5. Landlord/Tenant – 1,719
6. Real Estate Broker/Salesperson – 1,572
7. Cable – 1,483
8. Credit/Banking – 1,482
9. MV Sales/Accessories – 1,466
10. Travel/Vacation Plans – 1,436

Florida Commissioner of Agriculture Adam H. Putnam says his staff looks into complaints and, last year, “more than $3,477,000 was recovered on behalf of Florida consumers.”

The Florida Department of Agriculture and Consumer Services is the state’s clearinghouse for consumer complaints, protection and information. The assistance center is staffed with analysts who file complaints on behalf of the consumer, respond to questions about programs and regulations under the department, provide information on a variety of topics or direct callers to the appropriate government agency.

Consumers who believe fraud has taken place can contact the department’s consumer protection and information hotline at 1-800-HELP-FLA (435-7352) or, for Spanish speakers, 1-800-FL-AYUDA (352-9832).

© 2014 Florida Realtors®

 

 

Tired of the Cold Winter Weather? Come to Salt Springs & Florida Sunshine

Posted by Duke Rountree on
Salt Springs, FL in Ocala National Forest
NO winter weather here on January 4th 2014. Fishing on Lake Kerr in Salt Springs, FL compliments of Rountree Realty

If you have never been to Florida during the months November – February you sure are missing some great weather and many outdoor activities including fishing, camping, hiking, horseback riding and for those used to waterskiing in the cold our lakes are ready to be shredded up. Yesterday, January 4th was one of those days. My wife and I enjoyed some fishing on Lake Kerr, Salt Springs, Florida and the weather was high 70’s and fish were biting. We caught a nice largemouth bass and chain pickerel(“Jack” fish for local terminology). Why am I telling you all of this? Because we have some GREAT, reasonably priced homes for sale on and off of the water right here in the Heart of the Ocala National Forest .

Salt Springs, Florida Properties for Sale

 

Foreign Home Buyers Continue to Identify U.S. as Profitable Investment, Realtors® Report

Posted by Duke Rountree on

Foreign Home Buyers Continue to Identify U.S. as Profitable Investment, Realtors® Report

 

According to the National Association of Realtors® 2013 Profile of International Home Buying Activity, interest in U.S. properties continues to grow, signaling that America continues to be regarded by international buyers as a great place to own property. International sales have declined a bit in the past year, but are at their second highest level in recent years. Difficult economic conditions, particularly in Europe, have impacted foreign buyers abroad and here at home tightened credit standards and low housing inventories have made finding a house more difficult. However none of these factors appear to be permanent. Total international sales were $68.2 billion, with 51% of foreign buyers with permanent residences outside the U.S. and 49% who are recent immigrants or temporary visa holders.

Five states made up 61 percent of reported purchases; Florida (23 percent), California (17 percent), Arizona (9 percent), Texas (9 percent) and New York (3 percent). About half of foreign buyers preferred to purchase in a suburban area, while a quarter preferred a more central city/urban area. A majority purchased a detached single-family home and 63 percent used all-cash. Based on the reported international transactions, the mean and median prices of purchases were higher when compared to purchase prices of domestic buyers. For the 12 months ending March 2013 the median international home price was $275,862 and for domestic buyers it was $179,867. The types of homes purchased by international buyers frequently tended to be different from the types of homes purchased by domestic U.S. buyers. “Some are looking for trophy properties while others are interested in modest vacation homes,” said  NAR President Gary Thomas. International buyers are more likely to be substantially wealthier and looking for a property in a specialized niche. International buyers also tend to cluster in locations based on their origin and many other factors including proximity to home country, relatives and friends, jobs, education and climate.

 

“Realtors® provide international buyers with a significant advantage when purchasing property in the U.S.. Realtors® who have earned NAR’s Certified International Property Specialist designation have received specialized training and are well prepared to service the international market,” said Thomas.Source: Realtor.org, News-releases, 2013, Foreign Buyers Leanne High

 

“What is right is more important than who is right.”

– John Wooden

 

FHA’s Back-to-Work Program Helps Foreclosed Owners Get Second Chance

Posted by Duke Rountree on

upside down house

FHA’s Back-to-Work Program Helps Foreclosed Owners Get Second Chance

 

Foreclosed owners in Ocala/Marion County can get a second chance at homeownership sooner rather than later. The Federal Housing Administration recently announced the shortening of the waiting period for qualified borrowers who had a bankruptcy, foreclosure,  deed in lieu of foreclosure, or short sale who are in the market to buy again. To qualify under the FHA’s Back-to-Work Program homeowners must show that they have their finances back in order and they must receive counseling from a HUD-approved agency. The counselors provides borrowers with household budgets and customized action plans showing them how to manage money and financial obligations to prevent future failures.The details of the program claim if the buyer meet the criteria they can apply to buy a property in as little as a year.

“The Back to Work program is a great opportunity for us to help those impacted by the recent housing crisis,” Heather Shanahan, a representative with a HUD-approved housing counseling agency      called Springboard, told HousingWire. “Our goal in our counseling sessions is to enable the borrower to better understand their loan options and the obligations.” I think what gets lost in many of these programs is the fact that many, if not most, did not make the decision to make bad financial decisions. There were many factors that played a role in the recent economic downturn and unfortunately many Americans paid the financial price. FHA, Fannie Mae and many other lending institutions created the mess by offering loans that were not safe for themselves or the public they were offering them too.

I have said before and i will say again, “Low down loans did not lead to the housing boom and eventual bust!” It was the exotic 1-2-3 A-R-M loans, No Income Verification and on and on. It was so easy to get a home, anyone could and most did! With the added demand the prices skyrocketed over a few short years. Then the A-R-M loans started coming due and the values were not there and the job market slowed or died all together. It was simply a bad combination for many Americans and I hope more programs will come along to help folks become homeowners again soon.

Want to learn more about one of these programs? Contact Me Today 352-572-1739

Many Lenders Are Loosening Down Payment Requirements?

Posted by Duke Rountree on

What does this mean for the Ocala Housing Market?

I personally think this is great news for the Ocala housing market. We have some of the lowest wages in the state of Florida and it can be
very difficult for a family to save for a large deposit. Many will argue that the recent mortgage troubles were brought on by the low, or zero, down loans, but I disagree. Many lenders were following the governments lead in offering such products as zero down and no income verification. That’s right, NO INCOME VERIFICATION! I saw it first back in the late 90’s to early 2000’s with Fannie Mae loan products tailored to meet the needs of workforce, or called “Workforce Housing.” The name sounds great and initially the program sounded like a great idea. Lets reach out to people who are teachers, nurses, law enforcement and on and on and on; they decided to make loan products to simplify the entire process. However, what started as a great idea kept growing to include too creative and too exotic of loan products. The banks and lending institutions really had no choice but start offering ALL of these products or miss the boat on profits from all of the newly qualified pool of buyers.

Just because the loan down payments are low does not mean the buyers will default. Since 2006 buyer have been experiencing very tight lending standards and it has been sidelining many potential buyers the last few years. “Lenders are putting more focus on purchase mortgages and are adjusting minimum requirements to attract borrowers,” says Doug Lebda, LendingTree founder and CEO. “With home values improving, the risk of borrowers defaulting on loans has decreased, giving lenders more confidence to lend with less cash down from qualified borrowers.”  The average down payment on a 30-year, fixed-rate mortgage fell 2.74 percent from the second quarter to 15.73 percent of the home’s value in the third quarter, according to a new report from LendingTree.

Many banks are now offering 5-percent down loan payments with Bank of America, Wells Fargo and TD Bank all jumping in, however many are still requiring PMI(Private Mortgage Insurance) until 20% equity is gained on the home. I firmly believe people are better to be homeowners than renters. It has traditionally been the greatest source of increased wealth in America. I know the last 6-7 years things have not went in the right direction, but it is still a better future investment to own a home instead of renting. Not to mention with rental rates increasing year over year, you can buy a home including taxes and rent for cheaper than you can rent a comparable property.

Where is the historic district in Ocala, Florida?

Posted by Duke Rountree on

Google Maps

The Ocala Historic District – Ocala, Florida is rich in history and architecture for many reasons and has a unique collection of historic structures. The district covers 173 acres and includes over 200 historic homes and structure, and was added to the National Registry of Historic Places in 1984. The historic district boundaries include Broadway, SE 8th, Silver Springs Place, SE 3rd St., 13th, and Watula and centers along Ft. King Street. If you visit the downtown area make sure you stop by the “Rheinauer House” once known as the Seven Sisters Inn, this house is one of America’s “most haunted.” The historic district began along the original Fort King Road back in the 1820’s to connect old Fort King with Fort Brooke in Tampa. Many arrived via paddlewheel steamboat after a 1870 glowing journal about Silver Springs. Not long after the railroad came into Ocala and in 1880 beautiful and quite large homes began to grow.

If you want to learn more click here: Ocala Historic District
2011-12-04 14.02.13

Banks Now Offering 5% Down Loans

Posted by Duke Rountree on

What does this mean for the Ocala Housing Market?

I personally think this is great news for the Ocala housing market. We have some of the lowest wages in the state of Florida and it can very difficult for a family to save for a large deposit. Many will argue that the recent mortgage troubles were happy housebrought on by the low, or zero, down loans, but I disagree. Many lenders were following the governments lead in offering such products as zero down and no income verification. That’s right, NO INCOME VERIFICATION! I saw it first back in the late 90’s to early 2000’s with Fannie Mae loan products tailored to meet the needs of workforce, or called “Workforce Housing.” The name sounds great and initially the program sounded like a great idea. Lets reach out to people who are teachers, nurses, law enforcement and on and on and on; they decided to make loan products to simplify the entire process. However, what started as a great idea kept growing to include too creative and too exotic of loan products. The banks and lending institutions really had no choice but start offering ALL of these products or miss the boat on profits from all of the newly qualified pool of buyers. Just because the loan down payments are low does not mean the buyers will default. Since 2006 buyer have been experiencing very tight lending standards and it has been sidelining many potential buyers the last few years.

“Lenders are putting more focus on purchase mortgages and are adjusting minimum requirements to attract borrowers,” says Doug Lebda, LendingTree founder and CEO. “With home values improving, the risk of borrowers defaulting on loans has decreased, giving lenders more confidence to lend with less cash down from qualified borrowers.”  The average down payment on a 30-year, fixed-rate mortgage fell 2.74 percent from the second quarter to 15.73 percent of the home’s value in the third quarter, according to a new report from LendingTree.

Many banks are now offering 5-percent down loan payments with Bank of America, Wells Fargo and TD Bank all jumping in, however many are still requiring PMI(Private Mortgage Insurance) until 20% equity is gained on the home. I recently closed on a transaction with Campus Credit Union on conventional loan for 5% down. Traditionally a conventional loan would of required a minimum 20% down payment. I firmly believe people are better off to be homeowners than renters. It has traditionally been the greatest source of increased wealth in America. I know the last 6-7 years things have not went in the right direction, but it is still a better future investment to own a home instead of renting. Not to mention, rental rates have  increased year over year, you can buy a home including taxes and rent for cheaper than you can rent a comparable property.

Rountree Realty and our agents can help you secure some great financing. Give us a call, text or email us for a list of options.