REALTOR®. Real Estate Agent. What’s the Difference?

27/05/10 0 COMMENTS

Realtor. Real Estate Agent. What's the Difference?

The housing market is tough to navigate whether or not it is a “buyer’s market” or a “seller’s market.” Some buyers/sellers feel that hiring a professional to help them wade through the process is a waste of time. In most cases, this is probably not true. Trying to handle everything alone can be challenging and time consuming at best. Worst of all it could cost you thousands of dollars. No matter if you’re buying or selling, get yourself a real estate agent … er, REALTOR®. What’s the difference anyway?

Basically, anyone licensed in your state to assist a client in buying or selling a home is a real estate agent. To acquire a real estate license, a person must be 18 years old, possess a high school diploma, and successfully pass a written exam. But to be become a REALTOR®, you must also adhere to a Code of Ethics which details the duties responsibilities to clients and customers, the general public, and to how to treat other REALTOR®s.

In addition to the Code of Ethics, here are a few other ways a REALTOR® can assist you:

  • REALTOR®s can suggest ways to accrue the down payment and explain alternative financing methods.*

  • REALTOR®s are already familiar with current real estate values, taxes, utility costs, municipal services and facilities, and may be aware of local zoning changes that could affect your decision to buy.*
  • REALTOR®s can show you only those homes best suited to your needs — size, style, features, location, accessibility to schools, transportation, shopping, and other personal preferences.*

Next time you’re in the market to buy or sell, ask your neighborhood real estate agent if they are a member of the National Association of REALTOR®s.

* SOURCE:  realtor.com

MORTGAGE TERMS DEFINED

18/05/10 0 COMMENTS

Mortgage Terms Defined

The dream to own real estate, in particular the family home, is in the heart of many. Beyond the dream of being handed a set of front door keys for the first time, how many of us really understand what a mortgage is all about. Not many. Like many industries, mortgages have a wide array of tech jargon that can be confusing to many consumers.

Not understanding a specific word can cost you thousands of dollars. Here’s a list which includes some of the most common terms used in the mortgage and real estate industries.

Adjustable Rate Mortgage (ARM)
A mortgage in which the interest rate is adjusted periodically based on a pre-selected index.

Biweekly
A payment plan where the borrower pays half of their normal mortgage payment every other week (instead of once a month). Biweekly plans total 26 payments annually and each payment equals one half the normal monthly mortgage payment.

Fixed Rate Mortgage
The interest rate will remain the same (unless refinanced) throughout the term of the mortgage for the original borrower.

Interest Accrual Rate
The percentage rate at which interest accrues on your mortgage. In most cases, it is also the rate used to calculate your monthly payments.

Loan-to-Value (LTV) Ratio
The direct relationship between the amount of the mortgage loan and the appraised value of the property. The LTV ratio is expressed as a percentage.

Refinance
Obtaining a new mortgage loan on a property already owned (often to replace existing loans on the property with a lower interest rate).

Simple Interest
Interest which is only computed on the principal balance.

Truth in Lending
A federal law (also known as Regulation Z) requiring disclosure of the Annual Percentage Rate (APR) to prospective home buyers shortly after they apply for the loan.

SOME OF THE FASTEST WAYS TO ZERO DEBT

10/05/10 0 COMMENTS

Some of the Fastest Ways to Zero Debt

There’s been a lot of hype hitting the media airwaves since the current economic crisis took hold. Most of the talk has been about getting out of debt. There are financial talk shows and organizations promising to cut your credit card debt. Evidently, all that talk isn’t helping because consumer-related debt continues to rise out of control into the trillions of dollars.

But, there’s still one program that does what it says it is going to do — show you some of the fastest ways to zero debt. Even better, they can do it with no change to your current income and no refinancing of your current mortgage! The company is called United First Financial ® and their amazing Web-based software is called the Money Merge Account ® program.

UFirst ™ starts with a simple strategy: eliminate debt and build wealth simultaneously by putting your money to work for you. From there, they assist you in achieving your financial goals through interest cancellation. Simply enter your debts: principal balance, interest, and term — then follow the program to become debt free!

When signing on the dotted line for your mortgage, was your biggest concern the interest rate? While many homeowners realize they can save money with lower interest rates, few think about the length of time they will be paying or the gross amount they will be paying, including interest, at the end of the loan’s term. This is one of the Money Merge Account program’s strong points — reducing your mortgage term and minimizing the amount of interest you’ll pay.

PREPARE YOURSELF FOR BECOMING DEBT FREE

07/05/10 0 COMMENTS

Prepare Yourself for Becoming Debt Free

Ask yourself these questions …

    How long could you survive if you lost your job today or a family member was struck down with a life-threatening illness?

    Do you have the financial resources to deal with a routine, but unexpected, auto repair?

    Could your budget handle the aftermath of forgetting to enter a couple debits into your bank register?

Any one of these scenarios could spell financial disaster — even for someone already on the path to becoming debt free. We all live in fear of these things happening to us as individuals and to our extended families. But are you prepared?

If you’re on a debt-reduction program, you might not have thought about the wealth part of the puzzle — accumulating cash and other resources for the future. Think about this for a minute … if you have $500 in savings, then you’ve only got $500 protecting you from the cold, cruel outside world. Scary, huh?

Look at your monthly expense budget and multiply it times three. That’s how much money you’d need to live for three months if your source of income suddenly ran dry. We’re not talking about available credit levels on credit cards or lines of credit to come up with the three month total — it needs to be cash savings accumulating interest in case of an emergency.

Beyond food and shelter expenses, think about your car’s license plates expiring during an emergency, registering the kids for school during a layoff, or recurring prescriptions that need filling during a spouse’s reduction in income. Do you have a three-month emergency fund in savings? No? Then start saving TODAY and find a program designed to not only make you debt free, but build wealth too.