Hire The Right Lender & Real Estate Agent

September 14th, 2016

Fort Worth, Texas is  a great place to buy your next home.

If you are a buyer looking to purchase a home , it is critical to find the right agent and the right lender.  Delays can be dreadful and it is so important to be working with a team that has your best interest at heart.    The government has changed the guidelines for closing and disclsoures and working with a knowledgable real estate professional is key.

The market is great and the time to sell is now.   Check out the link for this wonderful home in Fort Worth, Texas .  www.6073TheResort.com

Make it a great day.

Debbie 817-999-6639

6073 The Resort

Temporary Buy Down

April 26th, 2016

There is an infrequently-used mortgage program available that could be the solution to a buyer’s or seller’s problem.

2-1 Buy Down - 2.pngA temporary buydown is fixed rate mortgage that the seller has prepaid interest at closing to lower the payments for a number of years. The borrower must qualify at the note rate but gets the benefit of lower payments for the early years.

A 2/1 is a common buydown that the first year’s payment is calculated at 2% lower than the note rate and the second year’s payment is calculated at 1% lower than the note rate. The third through thirtieth years’ payments are the note rate.

Let’s set the scene. A buyer is using their available cash for down payment and closing costs to get into the home. They’d like to put their own touches on the home when they move in but may not be able to for a year or two since most of their cash was used.

In this example, a $250,000 home is purchased with a 3.5% down payment and a 4% mortgage for 30-years. Normally, the principal and interest payment would be $1,151.76 for the full 30-year term. If the seller will pay the lender $4,736 at closing, it can be applied to pre-pay part of the interest for the first two years.

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The first year, the buyer’s P&I payment will be $891.71 for 12 months based on a 2% interest rate or 2% lower than the 4% note rate. It is $260.06 lower per month in the first year. The second year, the buyer’s P&I payment will be $1,017.12 for the next 12 months based on a 3% interest rate or 1% lower than the 4% note rate. It is $134.64 lower per month in the second year.

A bonus for the buyer will be that the cost of the buydown paid at closing by the seller becomes prepaid interest that is deductible by the buyer in the year of purchase. The buyer gets lower than normal payments for the first two years and a sizable tax deduction.

This type of program can be very beneficial to a seller who wants to offer terms to improve the marketability of their home rather than lower the price. The challenge will be explaining it to not only potential buyers but even agents who are not familiar with this program.

Loan Do’s and Don’ts

April 6th, 2016


Are you thinking about purchasing a home in the Fort Worth, Texas Area?

I would love to help you with the process.  It is definitely worth mentioning that you want to keep your finances and credit score stable during the process.

Things you do NOT want to do:

  • APPLY FOR ANY ADDITIONAL CREDIT, OR MAKE ANY PURCHASES THAT REQUIRE CREDIT UNTIL AFTER YOUR LOAN CLOSES . Any new credit inquiries made before this loan closes will need to be explained and documented and could jeopardize your loan approval.
  • Buy a vehicle and take on a new car loan debt
  • Finance new furniture for your home.
  • Move money from one account to another
  • Make any large deposits that cannot be documented as to where the money can from. Large Cash deposits could be a problem if we cannot document the source of these funds.
  • Loan any funds from your 401K

Happy House Hunting !

Debbie 817-999-6639

Good Neighbors

December 11th, 2014

zaby neighbor

A good neighbor might be characterized as someone who’ll look after your home when you’re out of town by picking up your mail and watering your plants.  You’d most likely reciprocate for anyone who’d be so generous toward you.

In some cases, you might only be able to name one or two of your neighbors who would step up to that level of service.   Wouldn’t it be nice if more people on your street would be happy to make that offer?

The solution may just start with being a better neighbor first.  The following suggestions go a long way to improving your neighborhood and making new friends at the same time.

  • Meet your neighbors and exchange phone numbers and email addresses.  Agree with each other that you’ll let them know if you see something strange going on at their home.
  • Slow down when driving through the neighborhood; it will make it safer and everyone will appreciate it.
  • Control your dog: keep it on a leash; pick up after it; don’t let it bark too much.
  • Don’t park in front of your neighbor’s home.
  • Notify your immediate neighbors when you’re having remodeling done and ask them to let you know if any of the contractors cause damage to their property.
  • Let your neighbors know when you’re having a party and that there will be more cars on the street than usual.
  • Maintain your home and yard so that it adds to the beauty of the neighborhood.
  • Put your garbage out for collection on the correct day and bring the containers back in promptly.

In reality, it is fairly obvious; you just have to think of the things that you’d want from your neighbors.  Be friendly; don’t be noisy; offer a helping hand when available and respect each other’s boundaries.  Having a sense of community and that you all share the neighborhood can be underlying principles that will guide your behavior.

A good neighbor would be aware of suspicious activity and would call their neighbors and the police if warranted.  This might be something you can discuss with your neighbors.  Click here for a template to record your immediate neighbor’s contact information and keep readily available if needed.

Your Best Investment

October 5th, 2014

Sometimes, there are costs associated with not taking a particular action.  If a person left their money in a certificate of deposit earning 2% when they could have made an investment that earned 8%, the difference is the opportunity costs associated to not taking action.

If a couple has a down payment and good credit, locking in a low interest rate mortgage for 30 years could easily provide their lowest cost of housing.  If that couple waits three years to purchase a home, the price would probably be higher as would the mortgage rate.

However, assuming the price and interest rate remained constant, look at what the opportunity costs might be compared to doing nothing.

If their money was invested in a certificate of deposit at 2.00%, in two years their $8,750 would have grown to $9,104.  They would have earned $354 and had to pay ordinary income tax on the interest.

If their money was invested in the stock market that had increased 7%, in two years they would have a profit of $1,268 which would be subject to long-term capital gains tax.

On the other hand, it the same investment was used to buy a home that increased in value at 3% annually, the equity would be $31,938 or an increase of $23,188. Tax would not be triggered until the home is sold and may not be due then based on their homeowner’s principal residence exclusion.

The home goes up in value due to appreciation and the unpaid balance goes down because of amortization.  The dramatic difference in growth in the equity of the home is effected by leverage: the use of borrowed funds controlling the asset.

A home is a place of your own where you can feel safe and secure, to enjoy with your family and friends and in many instances, a very good investment.  It is difficult to measure the opportunity costs of intangibles but not necessarily money.

Make your own projections with Your Best Investment.

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