My New Blog

Are you looking for a condominium in Massachusetts? Do you have at least 10% for a down payment?

I recently received some valuable information from one of my mortgage partners, Stacey Alcorn of Unlimited Mortgage Corporation http://www.unlimitedhomemortgage.com., regarding condominium financing in Massachusetts. If you have less than a 10% down payment, it may be difficult to get financing. Most mortgage insurance companies are no longer insuring mortgages on condominiums where the buyer is putting less than 10% down. It may be difficult, but it is not impossible. If the complex is FHA approved, FHA financing is a viable option. If the complex is not FHA approved, it may be possible to obtain FHA approval if the unit meets certain FHA guidelines.

Mortgage programs are constantly changing so it is very important that you keep in regular contact with your lender. Before making an offer on a property, be sure to have your pre-approval letter updated, and have your lender check to make sure the loan program they have you slated for is still available.

Good luck with your search for a new home. If you have any questions, please give me a call.

There was a short, but very interesting segment on NBC news last night. I've been trying to do my part in reducing my footprint on this earth. I've cut down on the amount of paper I use, I got rid of my pick up truck and bought a more efficient vehicle, I even started to spend more money on light bulbs for the compact florescent bulbs. You know those funny looking things which last much longer and use less energy when compared to the traditional incandescent bulbs. Well it turns out those funny looking bulbs have their own environmental concerns. They contain mercury.  According to the story on nbc's website, the amount of mercury in each bulb is small (approximately 5 milligrams), but it is enough to contaminate up to 6,000 gallons of water.

What does this all mean? Should I stop using them?  Most experts say the benefits far outweigh the negatives, but we need to be careful how we dispose of them. And if you drop one and it breaks, technically you've created a hazardous waste site. So be careful how you clean it up and keep the kids and pets away.

For more information, check out the article on:

http://www.msnbc.msn.com/id/23694819/

Montgomery Energy Partners has plans to build two power plants in the Greater Lowell area. While there hasn’t been much debate over the 80 Megawatt plant to be built in Lowell, the larger 348 Megawatt Plant proposed for 134 Billerica Avenue in North Billerica has peaked the interest of many residents in Billerica, Chelmsford, Tewksbury, and Lowell.

The proposed plant would be fueled by natural gas with a diesel back up system. The site would hold a large diesel tank and another large tank of aqueous ammonia. While an engineer representing New Hampshire based DG Clean Power, a partner in the proposed plant, stated at a recent Chelmsford Board of Selectmen’s meeting that the natural gas burning plant would have no impact on the environment and surrounding communities, many local residents and town officials are concerned. Many fear possible health impacts due to air pollution, while others are concerned about water quality. The plant would be located in close proximity to the Concord River which is a concern to some in the event of a spill from either the diesel or ammonia storage tanks.

Both the Tewksbury & Chelmsford Boards of Selectmen have voted in opposition of the plant. While neither Board has legal power over the plant’s proposal, both plan on writing letters of opposition to state officials.

The plant is a Peak Electric Plant which means it would only be run during peak hours to supplement the power grid. The plant would be staffed while it is operating, but would be unstaffed when not in operation. Plant officials stated the plant can also be controlled from the Lowell Plant.

For more information and recent articles on the proposed plant, check out these websites:

http://www.wickedlocal.com/tewksbury/archive/x413876915

http://news.tradingcharts.com/futures/3/9/105312193.html

http://montgomerypowerpartners.com/overview.cfm

http://www.billericapowerplant.org/

To sign the petition opposing the site, visit:

http://www.thepetitionsite.com/1/stop-the-billerica-power-plant

I normally don't support all the negativity the media has been filling the airwaves and papers with, but I thought the 60 Minutes program tonight did a nice piece on the current forclosure market and how it all came to be.  For those of you that missed it, check it out on their website: 

http://www.cbsnews.com/sections/i_video/main500251.shtml?id=3756665n

At the 8 minute mark, they interview 2 couples who are now in trouble. It is very interesting to hear how the first couple had no idea or understanding about their variable rate loan. Who were they working with?  I also found it odd that the second couple thought it was fine for their mortgage payment to go up while the market was still rising, but not when the market is going down. They say the only advice they have gotten is to walk away and ruin their credit. Wow, that's some great advice. (I hope my sarcasm came through on that last sentence)

I find it odd that these couples speing hundreds of thousands of dollars on a home did not understand the risk involved in taking out a variable rate loan.

If you are going to buy a home, interview your Agent, Lender, and Attorrney. Find out how long they've been in the business and ask for references. Buying a home is one of the largest investments you will make in your lifetime. Do your homework, and make a wise, educated decision.

With more and more people looking to go "Green" and home heating costs on the rise, maybe now is the time to conduct a Home Energy Audit on your home. While it would cost you a few hundred dollars to have a professional conduct this for you, I found a site with tips on how you can do this yourself. Follow this link for instructions: http://www.eere.energy.gov/consumer/your_home/energy_audits/index.cfm/mytopic=11170

On Wednesday, January 8, 2008, the Massachusetts Senate will be voting on whether or not to make a Home Energy Scoring test mandatory on all home sales. This would increase the cost of selling a home, and could cause delays in the closings of sales. For the Massachusetts Association of Realtor's comments on this issue, please visit: http://takeaction.realtoractioncenter.com/campaign/energyscore/explanation

Foreclosures on the Rise

Recent data released by The Warren Group, a Boston publisher of real estate and financial information, shows residential property foreclosures have increased 199% when comparing the first 10 months of 2006 vs. the first 10 months of 2007. Many local towns have seen significant increases in foreclosures. What does all of this mean to the local homeowner? Typically when there is a dramatic foreclosure increase resulting in a large supply of Bank Owned properties listed for sale, area values tend to go down. Lets take the City of Lowell for an example. A majority of the 222 foreclosures in the City of Lowell are 2-3 unit Multi-Family properties. The 3rd Quarter (July-September) typically sees the most volume of sales activity for the entire year. In the 3rd Quarter 2006, there were 39 Multi-Family sales with a Median Sale Price of $315,000 & an average Days on Market of 87 in the City of Lowell. In the 3rd Quarter of 2007, there were 38 sales with a Median Sale Price of $232,825 & an average Days on Market of 121. While there is a similar volume of properties selling, Multi-Family properties are taking, on average, a month longer to sell & are selling for 26% less than they were a year ago. As you can see from this example, the large increase in Bank Owned inventory has had a direct affect on property values.

Don’t let the large increase in foreclosures or the negative stories from the media discourage you from the current real estate market. For many people, now is an excellent time to: buy their first home; upgrade to a larger home; move to a neighborhood with a better school system; or buy that vacation home. For more information on market conditions in your area, feel free to give me a call.

Save money during the holidays and buy that dream house in the New Year

The holidays can put a dent in your savings especially if you're planning to buy a home. But there are several ways to cut costs so your finances aren't in the red by New Year's Day. Consider the following money saving tips:

• In lieu of buying presents for every family member, suggest a gift exchange and draw names out of a hat.
• Agree on a spending limit for gifts for friends and family and stick to it.
• Make your holiday meals a potluck and assign each guest an item to bring.
• To prevent the urge to overspend when shopping, use cash and leave your credit cards at home.
• Consider buying a joint gift rather than individual gifts for a family such as a zoo membership or movie tickets.
• Instead of holiday wrap, buy monochromatic wrap in holiday colors such as green, red, or gold that can be used all year.
• For young children, half the fun of holidays is often opening the gifts. Wrap small, inexpensive items separately - coloring books, crayons and picture books or novels, even stocking stuffers work well. Or recycle hand-me-down toys by wrapping them up and putting them under the tree.
• Instead of spending a lot of money on gifts from the mall, give homemade treats like fudge, truffles, cookies or jams and jellies.
• To cut down on postage and holiday card costs, send mail only to out-of-town friends and family you're not likely to see throughout the year. Or send e-cards, which are usually free.
• To keep your electricity bill down, use a timer to turn outdoor lights on and off at designated hours.
• If you know you won't be able to pay your credit card off right away, make sure you use a single low-interest card to make purchases - that way you can easily track them.
• When traveling during the holidays, try to fly on the day of the actual holiday (Thanksgiving Day, Christmas Day). It's usually cheaper and there are plenty of seats.
• Subscribe to receive e-newsletters from your favorite online merchants. They will often e-mail coupons to use for savings on purchases and shipping costs. Or subscribers may receive private sale information.
• Sometimes buying an item online is cheaper than going to the store since many sites don't charge sales tax and offer free shipping. Use the savings to have the gift mailed directly to the recipient instead of standing in line at the post office.
• Instead of buying an expensive gift, make a donation to a worthy cause in a friend or family member's name.

Five good reasons to sell your home during the holidays

Contrary to popular belief, buyers shop for homes all year round, including the holiday season. In fact, sellers who put their homes on the market during the holiday season (roughly between November and January) may have an advantage because there are fewer houses on the market so there's less competition. There are several other reasons to consider putting your home on the market during the holidays:

1. Many home buyers have extra time off during the holiday season so they have more time to look for their new home.

2. Because of the limited supply of homes for sale, sellers may be able to receive a higher purchase offer than expected.

3. Buyers looking for homes during the holidays are usually highly motivated to buy before the end of the year so they can get extra itemized income-tax deductions for mortgage loan fees, interest and pro-rated property taxes.

4. Festive lights and holiday decorations can help a home "show better."

5. Because January is traditionally the month for transfers, having a home on the market at the end of the year can capture the transferees who may not be able to wait until the Spring to buy a home.