According to John Paulson, a billionaire hedge fund manager, the BEST INVESTMENT POSSIBLE is home ownership. He recently spoke at the “Delivering Alpha” conference presented by CNBC and Institutional Investor, Paulson said “I still think, from an individual perspective, the best-deal investment you can make is to buy a primary residence that you’re the owner-occupier of. Today, financing costs are extraordinarily low. You can get a 30-year mortgage somewhere around 4.5 percent. And if you put down, let’s say, 10 percent and the house is up 5 percent, which is the latest data, then you would be up 50 percent on your investment. And you’ve locked in the cost over the next 30 years. And today the cost of owning is somewhat less than the cost of renting. And if you rent, the rent goes up every year. But if you buy a 30-year mortgage, the cost is fixed.”
Monthly Archives: July 2014
Debt ratios, not credit scores, are the most worrisome factor for mortgage applicants – The Washington Post
Debt ratios, not credit scores, are the most worrisome factor for mortgage applicants – The Washington Post.
For some home purchasers, qualifying for a mortgage is a tough road to travel and sometimes ends unhappily with rejection. These rejections are typically from low credit scores, inadequate documented income and little or NO savings.
What really causes a mortgage lender to say no? It’s usually not your income or savings or even a less than ideal credit score. It’s your DTI; your “debt-to-income ratio.” This is the most reliable indicator in whether you’ll be able to repay the loan.
To learn more about DTIs and to discover yours, go to Fannie Mae’s “Know Your Options” site: www.knowyouroptions.com. You’ll find helpful tools here.
5 Fixes that will Help you SELL your HOME
The TODAY Show on NBC featured real estate expert Barbara Corcoran discussing 5 easy fixes you can do that will help sell your home. This is great advice! Check out the video.
I have some other useful tips as well that can prepare your home for selling in the future (and take the stress out of rushing to do everything at the last minute). Just email me at john@stagesre.com to request more info.
DC Metro a BEST MARKET for BUYING Residential Property RENTALS
According to RealtyTrac® a leading source for housing data, DC is one of the top 25 best markets for buying residential property rentals.
They just released their Q2 2014 Residential Property Rental Report, which ranks the best markets for buying residential residential rental properties along with the best markets for renting to baby boomers and the best markets for renting to millennials.
With interest rates still at historic lows, this is the time to explore real estate as an investment.
Private Mortgage Insurance
Many new homebuyers underestimate some costs associated with buying a home. Borrowers are usually required to get Private Mortgage Insurance (PMI) if the loan exceeds 80 percent of the home’s value. This insurance protects the lender in the event that a homeowner defaults on the loan. There are mortgage products that will allow a lower downpayment without the additional PMI. As you shop for a mortgage, it is extremely important to inquire about this.