If you are you current on your mortgage payments with no late payments within the past six months and no more than one late payment within the last 12 months and your loan was sold to FannieMae or FreddieMac on or before May 31st, 2009 the the new HARP (Home Affordability Refinance Program) announced on October 24th , 2011 by the FHA maybe an option for you.

YOu may be may be able to qualify for a new loan/refinance which can lower your monthly payments and help make your home more affordable in these hard economical times.

For more information about HARP, click here or call 1-800-7FANNIE or 1-800-FREDDIE.

In a statement made by Freddie Mac yesterday, the average rate for a 30-year fixed loan dropped to 4.12 percent, the lowest in the company’s records dating back to 1971. The average 15-year rate fell to 3.33 percent from 3.39 percent.

What does that mean for you, the buyer, in dollars and cents?  Here’s and example.

248 Sumpter Street, a two bedroom condo in the Bedford Stuyvesant/Ocean Hill section of Brooklyn is listed at $239,000.

$239,000 - Offer Price
$47,800 – Down payment of 20%
$191,200 – Loan Amount
$926.00 – Monthly Mortgage Payment with 4.12% interest rate
$583 – Common Charge (includes heat, hot water, gas)
$80 – Electric
$125 – Taxes

$1,714 – A Month to own this condo

So for $1,714 a month you can own a 1,000 square foot two bedroom condo. That’s less than a lot of people are paying to rent a two bedroom apartment, and that’s not including they gas and electric charges.

The market seems very rocky now, but consider this, if you rent an apartment for a year for $1,700 a month you will have given your landlord $20,400 that you will never see again. If you own, when you sell your property, after holding on to it for several year until the economy recovers, you can get back the money you paid plus any profit. The times we live in are financially scary right now, but the opportunity to own for less than ever before is great.

If you’d like more information about buying a condo, co-op or townhouse in Brooklyn, give me a call today at the number below.

This is fabulous news if you are a ready, willing and able buyer.

Are You Ready? – Do you have the money to make a down payment? If you want to buy a house or a condo in Brooklyn, NY you can put down as little as 3.5%.  That’s only$21,000 to buy a $600,000 Brownstone in the very hot Bedford Stuyvesant!

Are Your Willing? – Do you have a good credit score that indicates that you are willing to pay your bills on time?  If your credit score is in the high 600s that’s good.  If its in the 700′s that even better.

Are You Able? – Do you have the income needed to buy a home?  A quick rule of thumb just to give you an idea of your buying power (consult with a mortgage professional to find out exactly what you can buy with your income) is multiply your annual income by four.  If you and your spouse’s combined income is $125,000 you can purchase a property worth approximately $500,000.

Buyers – Its Your Market!

Prices in Brooklyn are at 2003 levels, and there are many bargains to be had.  If you are ready, willing and able to buy property, what are you waiting for?  The economic factors we see today we will probably never repeat themselves in our lifetime.  If you’re thinking about buying, now is the time!  Opportunity is knocking.  Give me a call today and let me help you find your dream home today.

But today I want to give you an example of why its better to own a coop apartment in Brooklyn than to rent a similar apartment.

Here is an actual example of a coop apartment that’s for sale right now. There is a one bedroom apartment for lale at the Philip Howard Coop located at 1655 Flatbush Avenue in Brooklyn. Its listed at $120,000. Lets look at the math:

$120,000 – purchase price.
-24,000 – down payment of 20%
$96,000 – The amount you would be getting a mortgage on.
4.5% – today’s average interest rate on a 30 year fixed mortgage.
$491.87 – Mortgage
$308.00 – Maintenance (which includes everything except electricity)
789.87 – Total monthly cost (add another $50 for electric)

To rent a 1 bedroom apartment in East Flatbush would cost you around $1,200 – $1400 a month. Now imagine you rented for just 3 years. You would have given your landlord $43,200, which you will never recover. If you owned the apartment and sold it typically you should at least be able to recoup the money you put into it, and once this market finishes correcting itself, you should see a profit.

As you can see from the math I just used (which can be applied to any type of property), it is better to own than rent (for the most part). If you’re interested in buying a house, condo or coop, making the most of your money, give me a call at the number below or email me by clicking here.

She did everything a buyer needs to do to make the process of finding and purchasing a home as quick and painless as possible.  She made a list of her ”must haves” and “would like to haves” in her new place.  She did extensive research in the areas of Brooklyn that she would like to live, and settled on Bedford Stuyvesant or Crown Heights.  She determined that she had enough money to make a pretty substantial down payment on a home in the price range she decided that she could afford.

Her next step was to check her credit report so that she would have the most up-to-date information on what she owed and her credit score.  Imagine her surprise when her credit report showed she had a new credit card that she knew absolutely nothing about!

Identify theft happens, and sometimes the thief is someone who you would least expect, like in my friend’s case the thief was a cousin. 

Check your credit report once a year at least.  You can do so for free at www.annualcreditreport.com. Also, consider using the services of one of the credit protection agencies like Lifelock for extra peace of mind.

Now that bigger down payments are the rule of the day, here are 10 ways you can get the money you need for a down payment so you can buy that house, condo or co-op of your dreams.

1. Put Money Away on a Regular Basis - If you put $200 dollars in your ”down payment savings account” each pay check (there’s usually 26 bi-weekly checks in a calendar year) thats $5,200 in one year’s time.  Of course, the more money you can save, the quicker you’ll have enough money for a down payment.
2. Save Your Tax Refund – Many Americans get a very nice sum of money at the end of the year in the form of a tax refund from both the federal and the city/state.  Put that money away towards a down payment.
3. Tap Into Your Retirement Plan- Many retirement plans allow you to borrow funds to purchase a home.  Check with your financial advisor to see if this is an option for you.
4. Expecting a Raise? Save the Difference – When you get a raise, automatically save the additional money.  Its money you didn’t have before so it won’t effect your household budging if you sock it away instead of spending it. 
5. Get A Temporary Second Job – A good way to get some extra money to save for a specific purpose is to get a temporary second job.  There are many seasonal positions that are looking for help throughout the year.  Some examples would be tax preparation, sales clerk during the holidays and summer life guard positions.  The possibilities are endless.
6. Start A Side Business – When I was a kid, my mother funded several vacations by selling Avon in her spare time. Do you have a hobby that you might be able to turn into a business venture? You can use the profits towards a down payment and after you’ve purchased your new home, you can continue the business and have an increase in your overall cash flow, which is always a good thing.
7. Get A Better Paying Job- Raises have been very small or nonexistent during this economic downturn, but often when you change jobs you can get a salary bump that far exceeds any number of raises you’re likely to get.  If you’re in an industry where jobs are still plentiful, get a better paying job and save the difference towards a down payment. 
8. Sell Some Stuff - You’d be surprised how much stuff you accumulate just during the regular coarse of life.  Instead of throwing out that chair you no longer want or trashing those old VHS taps, hold a garage sale or sell it on Ebay.   If you no longer need it, someone else might want it.  Sell it and save the money towards a down payment.
9. Government Programs - As of the date of this blog post, FHA loans still only require 3.5% down.  Find out from a lender whether you can qualify for an FHA loan and save that amount.  Are you a veteran?  There are still VA loans available to you that have low or even no down payments.
10. Ask Family and Friends - An outright gift is the best, but some one you know might be willing to give you a loan.  Hey, you never know.

I’ve listed ten ways you can get the money you need for a down payment on a house, and you may know of more that I haven’t thought of.  Currently interest rates are low and house prices are down so its worth any effort you make to get that down payment money so you can buy the home of your dreams.

You can still put down as little as 3.5% on the property you want to purchase, but the cost of the monthly premium that you have to pay as a form of protection for the lender, just increased.

According to a very informative article in the New York Times, effective on April 18, F.H.A.’s annual premium on a 30-year loan rose to 1.1 or 1.15 percent of the loan value, up from 0.85 or 0.9 percent. (The higher rates are for down payments below 5 percent.) On a $400,000 loan with the minimum down payment, that’s $83 more per month.

Of course you can opt not to pay the premium, but that requires you to put more than 5% down and secure private mortgage insurance (PMI).

There are still many mortgage options available to anyone looking to purchase a home, so if you want to buy that first home or upgrade to a bigger place in Brooklyn, New York, give me a call at the number below, or email my by clicking here.

Why do you need one? –  Many sellers will not entertain an offer without one, it makes your offer stronger, and it saves you from being disappointed later on when you find out that you can’t get a loan to buy the property you’ve ”fallen in love” with.  

Many people think getting a pre-approval is a big deal that involves hours of filing out paperwork and results in an automatic drop in your credit score.  None of those things are true.  Here’s all you need to get pre-approved for a mortgage loan:

1. 30 Days worth of pay stubs
2. Last 3 Months Bank Statements
3. Last statement for any retirement account if you have one such as a 401k or 203 B. 
4. Last 2 Years W2′s
5. Last 2 Years Tax Returns
6. A photocopy of their social security card, and driver’s License

That’s it, and to make the process even easier I can give you the name and number of a mortgage broker who will pre-approve your mortgage loan FOR FREE, in just about 30 mins and FROM THE COMFORT OF YOUR OWN HOME, if you wish. Just give me a call at the number below or email me by clicking here.

1. Make sure that the information on your credit report is accurate, complete, and up-to-date.
2. Look out for delinquent accounts on your credit report. If you find there is an entry for a credit card that you’ve never signed up for, that is a sign that your identity might have been stolen
3. Be sure to check all three credit bureaus – Equifax, Experian and TransUnion.

There is only one website approved by the Federal Trade Commission to provide the free annual credit report – annualcreditreport.com. 

Just like you go to the doctor annually for a check up, be sure to do an annual financial check up by checking your credit report at least once a year.

If you served outside of the U.S. for at least 90 days during the period beginning after December 31, 2008, and ending before May 1, 2010, the deadline that allows you to take advantage of the Homebuyer Tax Credits is extended to April 30, 2011.

As long as you enter into a binding contract to purchase a home by that date, you have until June 30, 2011 to close on the purchase. Both the $8,000 first-time and the $6,500 repeat homebuyer tax credits are included in the extension.

For more information on how you can take advantage of the special extension for the homebuyer tax credits in Brooklyn, New York, feel free to contact me or give me a call at the number below.