Posted by Annalisa Burgos | June 8, 2009
HGTV has always been about enhancing your home and home life. So it makes sense that FrontDoor.com, the real estate site powered by HGTV, is about enhancing your search for the place you call home. That means bringing you valuable tips and advice to help you make smart decisions. So in addition to our blog and large library of articles and videos, we’ve created a vlog.
Real estate topics can be dry and boring, and most of the real estate news videos I’ve seen out there are just that. As the host, I want this to be informative and fun. And as a journalist, I want this to be relevant, since today’s buyers and homeowners don’t have time to sift through all the information that’s out there.
The vlog is not meant to be fancy or flashy. It’s our way of connecting with you as that smart friend “in the know.” Future episodes will feature different topics and occasionally a special guest. If there’s something you’d like to know or have an idea or pitch for the vlog, we want to hear it. Post a comment here and we could feature it in our next episode!
Posted by Annalisa Burgos | June 4, 2009
We’ve all heard about the $8,000 tax credit for first-time homebuyers — the government’s carrot to spur buying and help reduce unsold inventory.
How it used to work: A first-time buyer would complete the homebuying process, file their tax return with the IRS in January and the credit would be applied to the taxes owed. If you don’t owe anything, you get the full credit.
How it works now: A new federal program will let you use the tax credit immediately — during closing. This is an even sweeter carrot, because the down payment and closing costs are typically the biggest obstacles to overcome when buying a home.
In today’s uncertain economy, people would rather hold on to their cash. With lenders charging higher fees, this program lightens the burden of closing costs. Average fees for a $200,000 mortgage in 2008 with a 20 percent down payment were $3,118, according to Bankrate.
The catch or two…: How much your credit will be depends on your income, tax-filing status and home price. You have to get a Federal Housing Administration (FHA) mortgage and put down at least 3.5 percent of the purchase price. Of course it doesn’t hurt to use the credit to boost your down payment, which could help lower your interest rate.
Also it’s important to note that like conventional loans that require private mortgage insurance (PMI) when the down payment is less than 20 percent, FHA loans require what’s called a mortgage insurance premium (MIP). With the FHA loan, you pay an up-front premium (1.75 percent of the loan) which is financed into the mortgage and a monthly premium for at least the first five years (0.50 percent to 0.55 percent).
The bottom line: Any time you can get money upfront as opposed to waiting for it, it’s a good thing. Too bad I still own a condo in Knoxville, or else I’d be all over this.
Posted by Annalisa Burgos | May 8, 2009
My mother-in-law and I get along well, but I’m not sure how I’d feel about her living with me and my husband. Sure we’d get a babysitter and homemade enchiladas whenever we want. But there’s just something disconcerting about having your husband’s mother so close — the potential for power struggles and disagreements on how the household is run and how the children are raised. Not to mention the possibility that your husband will have to choose sides during an argument.
That said, many families across the country live happily with their mother-in-laws, and in a recession, sharing one roof to save money may not be such a bad idea. Which is why I expect a growing demand for “mother-in-law suites” or accessory dwelling units, as some cities call them.
A brief background — zoning and land use laws typically ban multiple dwelling units on one property, but some cities allow a relative or guest to live in secondary units, hence the term “mother-in-law suite,” or as I’ve heard here in the Northeast “a mother/daughter home.” You essentially have a separate living area, with its own kitchen and bathroom, connected to a single family home. They come in various forms, often a finished attic or basement or a detached building elsewhere on the property.
As more extended families and relatives move in together, properties with mother-in-law suites will become more appealing. Real estate agents already call out the feature in their listings. Before you buy one, make sure you check your local laws — you may or may not be able to rent out the space.
Check out these pictures of an awesome Craftsman-style home with mother-in-law suite (more like house!) for sale in Redmond, Oregon. It’s like getting two homes for the price of one! It’s listed for 390K.
If this one isn’t for you, don’t worry. We’ve got tons more on www.FrontDoor.com. And if you do decide to have your mother-in-law live with you, good luck with that.
Posted by Annalisa Burgos | April 30, 2009
Whenever I go to an open house, the listing agent often offers me the business card of a mortgage broker or loan officer, in case I’m looking for financing. Since I usually secure financing before I go house hunting, I never really think about the recommendation. Figured the guy was a friend, so the agent was doing him a favor by throwing him a bone.
But what if that agent or broker took a kickback for it. A big NO-NO.
Apparently, that’s what the nominee for the head of the Federal Housing Administration is accused of.
David Stevens, president and chief operating officer of Long & Foster, was supposed to be confirmed on Capitol Hill this week, but lawmakers put the vote on hold to review lawsuits alleging his company broke federal anti-kickback laws.
Long & Foster is facing several class action lawsuits, alleging that it shared profits with affiliated mortgage and title companies in exchange for bringing buyers their way. While these relationships are commonplace in the real estate industry, profiting from them is illegal.
If confirmed, mortgage industry vet Stevens will run the FHA, which offers those highly-coveted loans that require as little as a 3.5 percent down payment.
Posted by Annalisa Burgos | April 28, 2009
I’m trying to buy a condo in Manhattan and you know that’s nothing but drama. Running around the city via subway and cabs. Dealing with sellers who haven’t accepted the reality of the market. Trying to get financing with loan terms I want. And hello! Did you know New York City has the highest closing costs in the country, averaging $4,016, according to a survey by Bankrate?! DRAMA!
Well, now there’s a guide for anyone tired of the stress of buying, selling or financing a home. (drum roll please)
Introducing the new “Drama-Free Real Estate” series on HGTV’s FrontDoor.com. FrontDoor Freak-Out Prevention Specialist and real estate expert Tara-Nicholle Nelson offers more than 100 timely stories and tips to help you take the drama out of your homebuying, selling and financing experience. Check it out at: http://www.frontdoor.com/dramafree
Tara’s breaks down the “Top 10” action steps, strategies and insider secrets you must know; offers “Don’t Freak Out” tips to tackle the main sources of frustration; and shares her experiences and lessons learned with real-life clients in “Been There, Done That.”
If you’ve got drama you can’t handle, consult Tara’s guide and leave a comment here. We want to hear about it!
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