Insigniaresidential - FSBO

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REAL ESTATE 101

Some loan rates can look great in an advertisement but don't offer the whole story as to what you might ACTUALLY pay for the loan.

Points, PMI (private mortgage insurance), penalties, down payments and closing costs are also factors you need to consider.

When buying or selling a home, or refinancing a loan, understanding the contractual fine print and clauses can be overwhelming.  Know that I am here to help answer any questions you have. I have the experience and expertise to make sure you not only know your loans, but you also can sort out the options that make the most sense for you and your family.  Call me today to lean more!

TAKE FIVE - Five Handy Household Tips from your Neighborhood specialist

1. Stains in Plastic Storage Containers: Use a baking soda past (baking soda and water) and rub into the stain.  You can then rinse the vinegar (optional and wash normally.  Another method is to place container outside on a nice sunny day and the sun actually bleaches the stain out.  To avoid stains in the first place, spray container with cooking spray before putting things in it that stain i.e. spaghetti sauce.
2. Stickers, Decals, and Glue: To remove them from furniture, glass, plastic, etc. saturate with vegetable oil and rub off.
3. Stuck-On Food in Pots, Pans, and Crockpots: Fill the pan with water and place a fabric softener sheet in the water.  Allow the pan to soak overnight. The food will wipe right out!
4. Stovetops: To prevent grease and grime from sticking to your stove top, making it easy to clean, rub it down with car wax on occasion.
5. Tarnished Silverware: Line a cake pan with aluminum foil.  Fill with water and add 1 Tablespoon of baking soda per 2 cups of water.  Heat to 150 degrees. Lay silverware in pan, touching aluminum foil. Watch the stains disappear!

Environmental Reminders

• Do not bury or spread used motor oil on the ground as it will prevent anything from growing in that location for many years and may contaminate nearby water sources. To dispose of it, take it to your community recycling center.  By law, communities must have such a center, which may be located at an auto service or repair station, or at any station that sells or changes oil.  Diesel fuel, brake and transmission lubricants, lamp oil, and kerosene can also be brought to the recycling center.
• Whenever you apply pesticides, adhere strictly to the direction on the package.  Do not spray when temperatures are over 85 degrees Fahrenheit or when it is windy.

Open House - Sunday July 20th 1-3 This Sunday you will find me at 431 Hillside in Des Moines.  This is the first time I've held this home open.  This little home has been well maintained and is ready to move into.  It has 3 BR's, a large kitchen and dining area, hardwood floors, convenient laundry area, newer windows, and lots of storage space. It's located in a friendly south side neighborhood where the street is divided with a large island median. It really is a great home for only $67,900.  If you or someone you know might be interested in this home and would like more information, please contact me today.  Virginia Gruver 515/577-2412 or Virginia@RealEstateConcepts.net.

Directions - Follow Indianola Ave to Hillside, turn east to property.

Retirement is something that most people look forward to. The chance to take a break, to have all the time for yourself, to enjoy life after many years of hard work is indeed a very inviting prospect. However, financial instability makes the future of retirement a little bleak.

The Bleak Reality of Retirement

For many retirees, having an investment and savings can make a big difference when retirement arrives. In fact, recent surveys show that retirees today are only counting on their personal savings for support. Although the government gives Social Security, not all companies or employers provide traditional pensions for their employees. According to the Boston College Center for Retirement Research, in 2003 there were only 19% of workers who have traditional pensions to support them. This percentage continues to decline as more and more employers cut back pension plans for their employees.

Read full article: The Keys to a Happy Retirement

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Planning to settle down in Florida? Then it is wise to pick the best home that will fit perfectly with your lifestyle, as well as your needs for comfort and convenience. In fact, Florida is home to many prime residential properties that you can acquire for your very own; but you need to address certain factors that will determine the type of home you will be getting and avoiding any problems and regrets with it later on.

Financial Aspect

First and foremost, you need to settle your finances before you go out to purchase a residential property in Florida. In truth, some of the most luxurious and elegant homes in the region are quite expensive for an individual to purchase using their own financial resources.

To address this factor, you might need to resort to mortgage loans for your Florida home acquisition. There are practically hundreds of financial lenders in different parts of Florida that can help you out. Pick one out offers interest rates and payment terms that fits perfectly with your budget. You might want to take care of your credit scores and give it a little boost if you want to get the best offers regarding mortgage loans.

Picking Out A Location

If you have successfully covered the financial aspects of home acquisition, you need to choose a location in Florida for your family home. When searching for a city, either through local listing or on the Internet, you need to consider the following factors that will affect your decision:

• The architectural designs of residential units in a specific location in Florida

• The prices of these real estate properties

• The amenities found in the property (furniture, fixtures, and so on)

• The facilities that you might possibly need in the vicinity (schools, hospitals, recreational and entertainment facilities, government agencies, and so on)

• The ambience of the neighborhood that you plan to settle down in.

Let Others Do It For Your

If you are still new at this sort of thing, then it would be a great idea to look for a real estate agent to help you out. For starters, real estate agents are experts in the business. They have assorted contacts and affiliations in real estate agencies around Florida and have access to listings of different residential property on sale.

Aside from helping you look for a home in the location you wish to settle down in, provided that you gave them your home specification and budget range; these individuals can handle all the negotiations between you and the seller to expedite the process. They will also take care of the legal documents and paper works necessary for successfully closing the deal. All you need to do is sit back and relax, while waiting for them to hand you the property in a silver platter.

1. Information on mortages

Mortages can be easily used. There really is not much of a difference between an investment property mortgage and a normal property mortgage. In fact the only difference is in the terms of the mortgage for the investment property. Mortage terms can vary.

2. Be prepated

Comprehending things relating to mortages can be extremely useful. By being prepared you will definitely be able to secure a better deal for yourself.

3. Mortaging investment properties

Investment property mortgage terms are an important key to obtaining the investment property. With any mortgage on an investment property you will need to look at the interest rates as well as the other terms involved and make sure that they are what you feel comfortable with.

4. Information on rates

A person can easily locate investment property mortages Types of loans such as non-owner occupied units are normally considered to be negative amortization loans and generally 1. 375% 2. 75% on fixed rates. Now many of these rates are applied to 40-year loans. You can achieve productive income by using this kind of investment mortage.

I suppose if a land transaction Barack Obama inked a few years ago was thrown together by either Hillary or Bill Clinton, there would be an almighty stink. And, cries for criminal charges to be brought.

But, for some inexplicable reason - in spite of the fact the funding of a loan for a Georgian Mansion in upscale Chicago does not appear to pass the "smell test" - there have not been any allegations of "foul".

I expect the voters are so keen on following through with their - "Candidate for change" - that they are inclined to look the other way. Or, just maybe they're going into denial about the whole fiasco?

In my opinion, it has all the makings of a scandal; once the smoking gun is found, of course!

Shortly after joining the Senate, Obama bought a 1.65 million dollar property which he secured with a mortgage from Northern Trust in Illinois.

Unlike many other home buyers at the time (who generally paid 6% for a mortgage loan) the Senator was able to lock in at an interest rate of 5.625% over the thirty-year term.

Known as a "super super jumbo" in banking vernacular, the unusually high loan required no origination fee or discount points, either.

Based on average terms available during that time frame, the deal essentially saved Obama about three hundred dollars a month. Great financing, if you can swing it, eh?

After the questionable terms of the loan were revealed, Ben LaBolt (a spokesperson for the Senator) tried to effect some damage control by asserting that the rock-bottom rate was offered up to compete with another lender's bid for the financing. And, hence, not out-of-the-norm under the circumstances.

But, the debate is heating up, and for good reason.

When news broke that discounts were offered to J. Dodd (D-Conn.) and Kent Conrad (D-N.D.) at Countrywide Financial - at a time when a National Housing Crisis has adversely affected homeowners around the country - a glaring spotlight was thrown on the questionable practices - and ultimately - resulted in a preliminary Senate ethics committee inquiry into the Dodd and Conrad Loans.

Even Obama's campaign organizers have not been immune from scrutiny in recent days. In fact, when it was disclosed that James A. Johnson - head of the Vice Presidential Search Committee - obtained a favorable loan from Countrywide Financial, he resigned to avoid facing the music.

In some quarters, there is a concern that public officials knowingly or unknowingly receive special treatment from lenders and that the discounts may amount to illegal gifts, in essence.

Looking back, industry experts acknowledge that Barack Obama did better than average in respect to the financing of his mortgage in June of 2005.

In defense of the hints of impropriety, Northern Trust Vice President John O'Connell argued that occupation and salary are two factors taken into consideration when determining the extent of the financing, interest rates, etc.

However, his concluding remarks were the most telling, in my estimation.

For the record he noted that the Barack Obama mortgage financing was a business proposition for Northern Trust and that - as such - part of a "business model" to service and pursue successful individuals, families, and institutions.

Which begs the question: what does Northern Trust expect of the Senator in the future?

Notwithstanding, what of the common Joe?

Shouldn't a first-time home buyer, with scant funds, also be given the chance to pursue the American dream, too?

But, the controversy does not end there.

Allegedly, the day of the closing on the Georgian mansion in Chicago's tony enclave, the wife of Antoin (Tony) Rezko (a long-time friend and fundraiser for Barack) finalized paperwork on an adjoining lot that was originally a side yard for the main property.

More astounding - perhaps - was the revelation that Barack and Michelle managed to purchase their house for $300,000.00 less than the asking price of 1.95 million. In contrast, Rita (Rezko's wife) purchased the adjacent piece of land for the full sale price of $625,000.00.

Curiously, Rita Rezko later sold a portion of the tract (vacant) to the Obama family so that they could enlarge their yard.

Gee, I'd love to have "friends" like that, wouldn't you?

A footnote adds an intriguing twist to the whole scenario.

A few weeks ago, Tony Resko was convicted of sixteen counts in an influence-peddling scheme that reached the highest levels of Illinois State Government.

Was Obama his next victim or just a well-cared for pal?

An Ace in the hole, no doubt.

Customers may pay lower rates in successive years in Sibor-pegged deal

HSBC is launching a radical home loan package - featuring a decreasing interest rate spread - which is making some rivals scratch their heads.

HSBC’s new Sibor- pegged home loan package with loyalty discount gives a reduction in the interest rate margin charged in the first three years - a first in the market.

Current loans pegged to Sibor (Singapore interbank offer rate) have either flat or increasing interest rate spreads.

This new Sibor-pegged loyalty package is unique because the interest rate spread reduces by 10 basis points at the end of every anniversary year, up to the third year of the loan, HSBC said yesterday.

Under the new loyalty package, the customer pays the 3-month Sibor rate plus 0.75 per cent in the first year; in the second year, he pays 3-month Sibor plus 0.65 per cent; and from the third year onwards, the rate is 3-month Sibor plus 0.55 per cent. The 3-month Sibor on July 1 was 1.25 per cent.

For a customer who pledges to stick with the bank for three years, DBS’s interbank-pegged home loan charges a flat spread of 0.8 per cent for each of the three years and then it’s 1.25 per cent thereafter.

United Overseas Bank (UOB) charges a flat spread of 0.8 per cent to two of its interbank-pegged home loan packages.

Standard Chartered Bank’s Sibor-pegged mortgage also charges a flat spread of one per cent.

Observers that BT spoke to wonder what the catch is for HSBC to slice its margins, given the increasing costs of doing business and also the uncertain economic climate.

‘They’re mad,’ said one rival banker, listing the various costs banks incur in selling a home loan including commissions to brokers and its own sales people, and legal subsidies offered to borrowers.

Said Kevin Lam, head of loans, United Overseas Bank: ‘It’s an interesting idea. UOB introduced a similar package in the past. We called it a step-down package.’

At the end of the day, a homebuyer has to consider the long-term and short- term gains versus costs, said Mr Lam.

HSBC said it is rewarding customers for staying with the bank. Asked how it will manage its reduced margins, it said it was a ‘trade secret’.

Said Wendy Lim, head of consumer banking, HSBC: ‘Our Sibor-pegged loyalty pricing is premised on feedback from a study we conducted among home loan customers. The majority of customers in the study said that they liked the concept of inverse pricing in their home loan rates as it translates to more savings for them in the long run.’

‘Customers are telling us that they want to be rewarded for their loyalty. So we are addressing the need with this innovative offer,’ added Ms Lim.

Koh Kar Siong, DBS managing director and head of consumer deposits and secured lending, said his bank listens to customer feedback too.

‘DBS was the first bank to introduce transparent interest rates pegged to Sibor or to the CPF Ordinary Account rate. This happened at a time when there was public outcry over the lack of transparency of banks’ mortgage rates,’ said Mr Koh.

UOB KayHian analyst Jonathan Koh said banks in Singapore are benefiting ‘from a steepened yield curve as they can utilise short-term funding, such as fixed deposits and savings deposits, for lending to businesses and consumers on a longer-term basis’.

He thinks HSBC’s new package will not lead to an aggressive home loan war, given the ‘overall economic climate and the fact that ‘on corporate and small and medium enterprise loans, margins are more attractive’.

Still, rival bankers are unlikely to give up their turf without a fight.

One said his bank is prepared to reduce the spread to 0.7 per cent on a case- by-case basis in order ‘to protect our customers’.

Gregory Chan, OCBC head of secured lending, said his bank regularly makes adjustments for its home loan packages.

‘As such, we will continue to offer loan packages with promotional rates that are competitive compared to the other market players,’ he said.

Source : Business Times - 9 Jul 2008

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