The Charleston Real Estate Advisor

See If your Charleston Home Qualifies of the Federal Loan Modification Program

Need help with your Charleston home mortgage?  Do you want to see if you are eligible for the federal government's loan modification program?   Here is the government's website on loan modification.  Once at the site, click on the "Find out if You Are Eligible" button for a short assessment.
Making Home Affordable Website

Funny Video on CEO Pay

Here is a funny video on CEO pay that you might enjoy.

Charleston Real Estate Market to Benefit from White House Plan

The Charleston real estate market and local economy will benefit from the Homeowner Affordability and Stability Plan, or in non Washington terms "save homeowners from losing their homes plan."   

It has 3 parts:

• Help for the person that wants to refinance but can't because their loan is more or close to the value of their home due to falling home prices.  (We see this a lot in the Charleston area)
• Help for the person in default by working the banks to modify the loan and reduce the monthly payment.
• Promote low interest rates to stabilize the housing market.  

More details are coming out soon and the program is scheduled to start on March 4th, 2009.  

If you have questions concerning any part of this program, leave me a comment on the blog or contact me directly at 843-754-5848, email:jnear@kwchs.com.  If I do not have the answer,  I will research it and get back to you.  This is an important program for the Charleston real estate sellers and buyers.

Charleston Real Estate Mortgage Rates as of February 10th, 2009

Here are the current mortgage rates for Charleston real estate buyers.

Mortgage rates on home purchase mortgages moved up and came back today to 4.875%
Bank of America is quoting rates as of 02/10/09:

• Home Purchase Mortgage rates at 4.875% on 30 year fixed mortgage with 1 point,  the APR is at 5.002%

If you are thinking about buying a home for sale in the Charleston area, the rates are still good.

Important Information on Sellers and Short Sales

Here is a good article on items that a seller needs to consider prior listing a short sale on their property.

Short Sales - What Your Sellers Need To Know

 These days, it seems like Short Sales are the rule, not the exception.  In addition to working with a real estate team that has experience with Short Sales, there are several other important factors that your client needs to consider before moving forward with this type of sale. 

While a Short Sale can be a better option than foreclosure, it does have some very distinct disadvantages.  A Short Sale will effect your clients credit, although it will typically be viewed better than a foreclosure.   Another disadvantage is that the IRS may deem the difference between the sales price and the mortgage balance as reportable income, especially if it is investment property.  You should encourage your client to consult a CPA or tax attorney prior to deciding to do a short sale, as they may need to be prepared for an additional tax burden.  Clients should also realize that banks are not obligated to offer an owner a short sale.  Different banks have different rules, and some may even require promissory notes from the client instead of eating the loss.  Most banks will require additional information about your client’s financial situation before agreeing to a short sale, so your clients should meet with a qualified financial planner to gather net worth statements, cash flow statements, and other financial documentation to make their case to the bank.

An experienced Short Sale real estate agent is crucial to the process.  You and your team need to take the lead on coordinating with the bank and the client’s other advisors such as their attorney, financial planner, and CPA. Professional Real Estate Closers can be a tremendous asset to this team. They are experienced with short sales and bank negotiations and are willing to begin working with you at the time of the listing to help collect the required documents. As daunting as this task can seem to you, imagine what your client thinks when considering a short sale.  It’s imperative that you and your experienced team guide and coach the client through this complicated process.

-Dennis M. Patrick, CFP^®, ChFC^®

Dennis Patrick is a CERTIFIED FINANCIAL PLANNER ™ and a Chartered Financial Consultant^® with Morris Financial Concepts, Inc, a nationally recognized fee-only financial planning firm in Mt. Pleasant, SC.  Dennis.patrick@MFCPlanners.com

How to Help The Housing Market and Create Jobs

The “Fix Housing Act” will provide a $15,000 tax credit for homebuyers and there is a provision to lower 30-year fixed rate mortgages rate down to 4-4.5% for eligible homebuyers.  This would help get the real estate market back on it feet and help create jobs across America.  If you agree with this bill,  please contact your Senators and Representatives so they can hear your voice.

• Click here to download a step-by-step guide for contacting your Senator or Representative via phone or email.
• Click here for a composed note to send to your Senator or Representative.

If you are not familiar with this Act, click here for more information.

(Source: http://ensign.senate.gov/public/)

Mortgage Rate Quote for Charleston SC as Jan 21th, 2009

Mortgage rates on home purchases  and on refinancing mortgages moved up from last week.
Bank of America is quoting rates as of 01/21/09:

• Home Purchase Mortgage rates at 4.875% on 30 year fixed mortgage with 1 point,  the APR is at 5.002%
• Refinance Mortgage rates at 5.25% on 30 year fixed mortgage with 1 point,  the APR is at 5.371%

If you are thinking about buying a home for sale in the Charleston area, the rates are still good.

• Home Purchase Mortgage rates at 4.875% on 30 year fixed mortgage with 1 point,  the APR is at 5.002%
• Refinance Mortgage rates at 5.25% on 30 year fixed mortgage with 1 point,  the APR is at 5.371%

If you are thinking about buying a home for sale in the Charleston area, the rates are still good.

Mortgage Rate Quote for Charleston SC as Jan 12th, 2009

Rates on home purchases remain steady and rates on refinancing mortgages improved from last week. 
Bank of America is quoting rates as of 01/12/09 for home purchases at 4.375% on 30 year fixed mortgage with 1 point,  the APR is at 4.498%
Refinancing rates on a 30 year fixed mortgage are a little higher at 4.625% and 1 point, the APR is 4.758%. 

Start off 2009 With Dave Ramsey "Get Straight with Money"

Start 2009 off on the right foot! Host Dave Jenks of Business by The Book talks with money management expert, best-selling author and TV and radio personality Dave Ramsey.

• What happens to money?
• What wealth can come of home ownership and investments?
• What’s the diagnosis of the current market?

Dave covers all these questions and much more.  What did you like about this interview?

Locally, we will begin the Financial Peace University Course very shortly.  If you are interested, please let me know and I will send you more information.

Charleston Mortgage Rate Quotes at 4.375%

Bank of America is quoting rates as of 01/02/09 for home purchases at 4.375% on 30 year fixed mortgage with 1 point,  the APR is at 4.498%
Refinancing rates are a little higher at 4.75% and 1 point, the APR is 4.873%. 
The rates keep getting better!