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How Much Home Can You Afford?

Wednesday, June 15, 2016

by Don DeHanas, Broker

Determining how much home you can afford, or what payment you feel comfortable with, can be a trying process. Calling lenders, looking at mortgage loan programs and interest rates can be confusing, to say the least. There is an easy way to get started, and give yourself an idea of where you stand. Image: What Ever Home Buyer Should Know The first step is to find out what mortgage interest rates are at the current time.

You can typically do this with a couple of phone calls to lenders or some quick looking on the internet. Get your rates on conventional fixed rate loans. Now use this handy table to see what your payment would be at different price ranges and interest rates. Payments might be higher or lower than those shown in the chart depending on current interest rates. To obtain a very clear picture of how much home you can actually qualify for, the best idea is to contact a reputable local lender and let them analyze your entire situation. The lender can calculate your income-to-debt ratio, do a quick credit score and give you the information you need.

Typically, lenders like to see a ratio not exceeding about 28%. This does not take into consideration long term monthly debt. As an example, to qualify for a loan, lenders may require ratios of 28% or 36%. This means you can spend up to 28% of your gross monthly income on a motgage payment, and no more than 36% of your gross monthly income on all forms of debt, mortgage included.

We work with a number of loan officers and would be happy to recommend one right for you. Click here to contact us today. We are happy to help!

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Maryland Real Estate

Things to do in Southern Maryland

Wednesday, June 15, 2016

by Don DeHanas, Broker

It seemed as though Winter would never end this year. And if you have been searching for something new to do, it might be just as far as the next town over. With warming weather in Southern Maryland, comes an array of activities that the whole family will enjoy. The Maryland Office of Tourism is a great way to begin your search for fun things to do in Maryland. Their website is www.visitmaryland.org, and it features hundreds of activities which are right outside your door, and many of them are free.

Did you know there is a 30 acre art and sculpture museum in Solomons. It is called Annmarie Gardens, in association with the Smithsonian Institute, and features museum quality art in a beautiful outdoor setting. Daily activities include exhibits, scavenger hunts and toddler tours.

How about a wine tasting tour? Wineries and vineyards have been popping up all over Maryland, including Cove Point Winery and Vineyard in Lusby, and Friday’s Creek Winery in Owings. Many Maryland wineries are within an hours drive of Southern Maryland, and offer beautiful panoramic views and great spots for a basket lunch.

A visit to Historic St. Mary’s City offers a fun way to learn something new about Southern Maryland. The state's first capital in beautiful tidewater Southern Maryland is St. Mary’s City. Archaeology and living history, replica 17th-century tall ship, tobacco plantation, town center and Indian hamlet. There is at least a full days worth of fun your family will enjoy.

Want something more structured? Southern Maryland Tours offers Historic guided tours in the Tri County area. Or visit Historic Port Tobacco for a guided tour through a Colonial village with one room school house and court house.

Of course with warmer weather comes an array of water activities. Being surrounded by water on three sides means plenty of fishing and crabbing, boating and swimming. All of these activities and more can be found online with the Maryland Office of Tourism as well as in the Destination Maryland magazine offered at the Maryland Welcome Centers, as well as in our offices here at DeHanas Real Estate Services. Get out there and enjoy what Southern Maryland has to offer.

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THE TRUTH ABOUT HOME PRICES AND RECESSIONS

Wednesday, June 15, 2016

by Rachel DeHanas, Broker

There is much in the news today about the effects the housing market is having on the recession, but there are a few facts that are often overlooked by the media.

While it is true that the median price of an existing single family home actually did drop by 1.8% from 2006 to 2007, it is important to put it into context. Over the previous six years, the typical length of time an owner stays in one home, the median price has risen nearly 40%. Those owners simply gave back a small percentage of that gain, still leaving them with a very handsome appreciation rate.

Mortgage interested rates today are hovering around 5.5% and lower, about the same as they were 45 years ago. Interest rates on fixed rate and adjustable rate mortgages have been trending down. Falling rates do not portend a recession. Interest rates on jumbo loans, however, remain well above the conventional mortgage rates, as they are above the Freddie Mac and Fannie Mae limits. Therefore, it isn’t surprising that the share of single-family homes selling for more than $500,000 fell to 12.4% in early 2008 from 14.2% just a year earlier. This could also account for some of the drop in the median price over the past year.

Low mortgage rates trump the job markets during a recession. The last recession was in 2001 and the Federal Reserve was cutting rates, and mortgage rates were falling. As a result, home sales began to rise sharply.

Past deep housing recessions were accompanied by prolonged job losses and rising interest rates. We have falling interest rates today.

The economy added about 4 million jobs over the last two years preceding the recession. Household formation is about half of what it should be given the employment growth, which indicates that many buyers are sidelined now.

When the housing market begins to recover, this will signal the beginning of the overall economic recovery. We have historically low interest rates, while higher interest rates have been characterized in past recessions. The National Association of Realtors predicted economic expansion to slow in 2008, but the bottom line is, with lower interest rates we are likely to avoid a deeper recession.

For information about real estate trends in your local community, please contact your local real estate experts; The Rachel DeHanas Team at 301-870-1717 or 1-800-842-0190, or visit their website at www.DeHanas.com.

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WHAT IS A REALTOR?

Wednesday, June 15, 2016

by Rachel DeHanas, Broker

A Realtor is a licensed real estate professional who is a member of the National Association of REALTORS, The Voice For Real Estate, and subscribes to its strict code of ethics and standards.

The term Realtor is a registered collective membership mark that identifies a licensed real estate professional who is a member of NAR.

There are approximately 2.6 million licensed real estate professionals in the United State, but only 1.3 million are REALTORS. NAR membership is composed of residential and commercial REALTORS who are brokers, salespeople, property managers, appraisers, counselors and others engaged in all aspects of the real estate industry. There are more than 1,400 local associations and boards and 54 State and territory associations of REALTORS. Members join NAR through their local Realtor association.

The term “Realtor” and REALTORS” is not synonymous with “real estate agent” and “real estate agents”. The NAR code of ethics obligates REALTORS to be honest with all parties involved in a transaction, whether buyer, seller or cooperating agent. The Code requires REALTORS to identify and take steps to illuminate practices which may damage the public or which might discredit or dishonor the real estate profession.

REALTORS must take a refresher training course and pass an examination on the CODE of Ethics every four year cycle. Real Estate licensees who join NAR are required to take orientations classes on the code.

The role of REALTORS in our communities goes far beyond the real estate transaction process of buying and selling. As local business owners and residents, REALTORS are vested in building healthy and vibrant communities across the country neighborhood by neighborhood.

REALTORS across the country participate in many several NAR programs that improve our communities. The Housing Opportunity Program provides tools and recourses for promoting affordable housing at local, State and National levels. The Good Neighbor Awards honor REALTORS who have made an extraordinary commitment to improving the quality of life in their communities through volunteer work.

State and local Realtor Associations also initiate community projects of their own to improve the communities in which their members work and live. Many REALTORS work with local and State Habitat for Humanity Programs, food drives, and A Day For Caring programs.

For more information about public outreach and community programs sponsored by the National, State or Southern Maryland Association of REALTORS, please contact The Rachel DeHanas Team at 301-870-1717 or 1-800-842-0190, or visit their website at www.DeHanas.com.

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Displaying blog entries 1-4 of 4