Buying Rental Property? What You Need to Know

2 August 2010

With property values and interest rates at historical lows, now is the ideal time to consider the purchase of a rental property. Start by deciding if you want to buy something to fix up and sell right away or are you considering more of a long term investment. Maybe you’ll want to live in the property?

A good real estate agent can help in determining property values in a given location, with specific attributes such as parking, square footage and number of bedrooms, and what those properties would bear in a rental market as well.

Foreclosures, short sales and bank-owned real estate is a good place to start looking for properties, as they are often below market value. Keep in mind that they may need a bit of work. Either way, rental properties are priced particularly low at the moment.

If you plan on living in a 2-4 unit property, you could qualify for a FHA loan with as little as 3.5% down. If this is going to be a non-owner occupied property, plan on putting 25% down, and have six months worth of assets in the bank with which to make the payments. This is a bit steep, but lenders want to know that you are committed to making it work.

If you have questions or ideas you’d like to discuss about investment property, I have over 15 years of landlord experience to share. Feel free to call me at 471-9300 or email me at CharleyFarley@CharleyFarleyHomeLoans.com

2 August 2010 @ 00:35| Charley Farley

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2 Rules for a Good Credit Score

21 July 2010

Your credit score affects the interest rates you pay on credit cards, auto loans, and mortgages. It can even affect your insurance rates. Here are two of the major contributing factors that make up a credit score:

Balances Versus Limits: Keeping balances as low as possible, ideally under 50% of the high credit limit on a credit card and other trade lines, will help keep scores high. Having a balance that is very close to the limit will cause scores to drop. Let your balance climb over the high credit limit and your credit score will pay the price and then so will you.

Recent History: Making your monthly payments on time is the most important factor in getting and keeping a good credit score. The most recent 12 – 24 months is the most important period of your credit history.

If you have concerns about your credit history, check out my video on Credit or give me a call for an over the phone consultation - here in New Hampshire at 472-2272

21 July 2010 @ 16:14| Charley Farley

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Refinancing in NH

22 June 2010

With fixed rate mortgages at record lows, Refinancing is all the rage. Refinancing starts with making sure a refinance is right for you. Here are some good Reasons to Refinance

— Lower your monthly payment with a lower interest rate.

— Get a lower rate and pay off your mortgage sooner.

— Drop PMI or consolidate your first and second mortgage.

— Get out of debt faster by consolidating debt.

— Make home improvements.

The Process

Refinancing is similar to when you purchased the home only easier and less expensive.

1) Start by contacting me to discuss how much refinancing will save you.

2) You apply for the mortgage of your choice (takes 1/2 hour)

3) We often need an updated appraisal (takes a week or two)

4) Your loan gets approved and you go to a closing (takes 1/2 to 3/4 hour)

5) You skip a payment and start paying the new mortgage the following month.

Get an interest rate quote and use my online Savings Calculator under the “Refinance” tab or feel free to just give me a call at 472-2272

22 June 2010 @ 16:11| Charley Farley

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New Mortgage Rules Help You Choose Safely

16 June 2010

We have new laws in 2010 to help prevent mortgage fraud by providing you with some additional information. I know what you’re thinking: "Charley already flooded me with more information than I could possibly absorb at the last closing." Sorry!

If they actually work the new laws will accomplish two things.

First, New Hampshire consumers should get even more accurate information at the time of application.

Secondly, New Hampshire consumers should get fees disclosed to them at application in such a way as to avoid surprises at the closing table because the closing costs quoted at application are expected to fall within certain tolerances at closing.

It’s true the costs can definitely go up in certain circumstances, such as in the case of rate spikes. What is new is: the change in costs must be disclosed to you in advance of closing so you can decide ahead of time whether or not to proceed.

Remember: the devil is always in the details. You might go to a higher rate for the benefit of lower closing costs. You can also get a lower rate by paying additional fees as long as they are property disclosed on the disclosure forms. My job is to give you the information so you can make the right finance choice for you and your family.

16 June 2010 @ 10:48| Charley Farley

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What to Consider before Refinancing your Home

27 May 2010

With mortgage rates still bouncing around near historic lows and the economy showing signs, albeit small ones, of a recovery, I expect both fixed and adjustable rates to climb higher in the future. Not everyone should be considering a refinance at this time but some should. Consider refinancing if you can save enough money to justify the expense (try using the Refinance calculator on my website) or if you have an adjustable rate mortgage. Adjustable rate mortgages (ARMs) are tied to economic-related indices, such as Treasury rates, the Libor, and the Prime rate which most home equity lines are tied to. These indices, which are used to set the ARM rates, are low at this time but I’m expecting them to climb and cause your ARM rate to climb accordingly. If you wait, you’ll still be able to refinance to a fixed rate in the future but you should expect those rates to be higher as well. If you have questions about refinancing check out my new refinance video at CharleyFarleyHomeLoans.com. Click on the Refinance tab, watch the 2 minute video and use the calculator to determine your savings.

27 May 2010 @ 14:39| Charley Farley

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Chalk Another One up for NH's Local Lender

18 April 2010

The New Hampshire Housing Finance Authority (NHHFA) had their annual Awards luncheon on Wednesday March 24th. At the luncheon it was announced that I was ranked #6 in the State of New Hampshire for the NHHFA Single Family program. The NHHFA is a tax exempt public benefit corporation that administers a broad range of programs designed to assist low and moderate income persons and families to obtain decent, safe and affordable housing. I provide a whole host of government finance programs and the NHHFA programs have often been critical to the success of my home buyers. I am pleased to be partnered with Merrimack Mortgage and the NHHFA in providing so many home buyers with the most affordable financing for their new homes.

18 April 2010 @ 12:03| Charley Farley

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$8K Homebuyer Tax Credit Fuels Real Estate

16 February 2010

Savvy home buyers are cashing in on the new and improved homebuyer tax credit worth up to $8,000 for First Time Home Buyers. A $6,500 tax credit is available to qualified existing Home Sellers who are purchasing a new home. This tax incentive is fueling the Real Estate Recovery which is great for the entire economy. Get more detail on your qualifications at the Internal Revenue Service (IRS),.

16 February 2010 @ 16:53| Charley Farley

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Cash Assistance Program

2 February 2010

New Hampshire Housing Cash Assistance Program is being revised. It provides for 2% of the purchase price toward your Down Payment, Closing Costs, or Prepaid Expenses. You’ll need to meet the requirements for the program including the income limits, Purchase price limits, and you must contribute 1% of your own funds to the transaction. If you think the Cash Assistance Program can help you purchase a home, call me to discuss your qualification and other financing strategies at 472-2272.

2 February 2010 @ 15:42| Charley Farley

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FED keeps interest rates low

29 January 2010

The Federal Open Market Committee announced this week that it is not going to raise the FED or Discount Rate. Yippee!

Rates are still near record lows and entry level homes here in New Hampshire continue to sell at a health rate. It’s good to be a First Time Home Buyer: low interest rates, affordable home prices and maybe an $8,000 tax credit.

The FED believes “the economy is strengthening and the deterioration in the labor market is abating”. I think this means people are still losing their jobs but the rate of job loss is not as great. Emm… so the news is still bad but not as bad as it has been? Thankfully the employment news here in New Hampshire is much rosier than the national averages.

29 January 2010 @ 14:27| Charley Farley

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