MORTGAGE MATTERS - Rebecca Madej

We’ve moved!

Rebecca R. Madej — Sat, 05 Feb 2011 01:13:04 +0000

This blog can now be found at rebeccamadej.com. Please join in the conversation there!

Featured Listing

Rebecca R. Madej — Fri, 04 Feb 2011 19:40:52 +0000

Featured Listing

11014 Garden Oaks Lane

Spacious townhome in Steele Creek!

Sales Price: $120,000
MLS #: 992789

Fabulous 3 story, 3 bedroom and 3.5 bath in Steele Creek area!

Large master bedroom with walk in closet, master bath has garden tub and double vanities,spacious great room with gas fireplace, open kitchen with large island, 2 decks that are great for entertaining. Close to shopping, restaurants, I-77, 485 and 85!

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Rebecca Madej is a Charlotte mortgage banker who excels at helping clients choose the appropriate mortgage strategy and enjoys demystifying the financial process on her blog at rebeccamadej.com. She publishes a weekly “Mortgage Matters” e-newsletter and can be reached at rebeccam@cunninghammortgage.com or 704.488.8883.

Have You Heard?

Rebecca R. Madej — Wed, 02 Feb 2011 17:04:09 +0000

Have You Heard?

With tax season among us, Cunningham & Company is happy to sponsor an event designed especially for Realtors. Join us at the Charlotte Regional Realtor Association’s “Tax Strategies for the Real Estate Professional” on Wednesday, February 9^th from 12:30-3:00pm.

Tax-reduction specialist Kelly Clark of Bradford and Company, Inc. will offer helpful tips and information to assist Realtors® with filing their federal taxes.

Want more information? Give me a shout

Mortgage Matters :: Mortgage Insurance is a Real Snoozer…Right?

Rebecca R. Madej — Tue, 01 Feb 2011 01:55:54 +0000

News You Can Use

Most folks initially believe mortgage insurance is a means to an end, waste of money, boring or all of the above. Depending on a borrower’s financial goals, it should not be automatically dismissed. Mortgage insurance can be a useful way to leverage money.

Say a buyer wishes to purchase a home at $250,000 and they have $60,000 in savings. They could opt for a 20% down payment – resulting in a principal & interest payment of $1,043.29 – and have $10,000 available after purchase. Or they could opt for a 10% down payment and have a principal, interest & mortgage insurance payment ranging from $1278.71 to $1,187.79 and have $35,000 in liquid funds.

Furthermore, there are several options to consider. Compare the differing principal, interest & MI payments resulting from three popular strategies:
- Monthly: $1,278.71
- Lender Paid MI (paid via a higher rate): $1,207.85
- Financed (into the loan amount): $1,187.79

You can see the loan balances after five years vary by $2,471 but the amount saved in payments can be as much as $5,455. Plus there are $35,000 available as liquid funds. And don’t forget the potential tax benefits of mortgage insurance deduction.

If your client considers purchasing a home with the assistance of mortgage insurance and they have questions about how to structure the loan, it would be my pleasure to help them maximize their purchase and minimize their payment.

Featured Listing

Rebecca R. Madej — Fri, 28 Jan 2011 17:52:03 +0000

Featured Listing

3022 Symphony Woods Drive

Possible short sale!

Sales Price: $334,900

MLS #: 9 6 177 2

Mature subdivision in great University location which includes Swim and Tennis club. Fabulous floor plan with main level Master bedroom. Home offers side-load garage on a beautiful wooded corner lot!

Have You Heard?

Rebecca R. Madej — Thu, 27 Jan 2011 15:17:38 +0000

Have You Heard?

Do you or someone you know use coupons to help save money? Thanks to this report, you most likely do.

Haven’t tapped into the savings yet? Try sites like Coupon Mom and Hot Coupon World to get you started. It’s fun and rewarding!

Mortgage Matters :: Buyer Strategy for New OTP

Rebecca R. Madej — Mon, 24 Jan 2011 17:51:21 +0000

News You Can Use

The transition to the new NC contract seems to be going well. The most valuable gauge of its success is your input – what do you think so far?

Cunningham & Company is pleased to offer the Buyer Ready Program in response to the OTP’s changes – in particular that loan approval should be finalized by the due diligence date.

Our unique Buyer Ready Program provides home buyers with an early start on the mortgage process while they search for their new home. We are able to deliver an underwriter’s credit approval prior to property selection which provides numerous benefits to your client.

Advantages of a Buyer Ready approval:
- reduces a buyer’s uncertainty & anxiety about buying
- strengthens their negotiating power
- other valuable and time-saving benefits

This new contract brings an increased need for professionalism, accountability and strong partnerships. Please share our Buyer Ready Program and its advantages with your buyers. I look forward to serving them and making their mortgage process a successful one.

Have You Heard?

Rebecca R. Madej — Wed, 12 Jan 2011 18:19:21 +0000

Have You Heard?

Last week I had the pleasure of hearing John Silvia, chief economist for Wells Fargo, speak at the Charlotte Regional Mortgage Lenders Association meeting. I always look forward to his annual visit because of his depth of knowledge and ability to summarize complex data into useful soundbites. His presentation’s overall tone was bullish. I’d be happy to email you a copy of the PowerPoint if you’d like to read more about what’s on the economic horizon. Just ask if you are interested.

Mortgage Matters :: An untapped market

Rebecca R. Madej — Mon, 10 Jan 2011 17:42:02 +0000

News You Can Use

Did you know that FHA loans allow for nonoccupant coborrowers? Lenders refer to this type loan as a ‘kiddie condo’ because it’s often used by parents and their children. Keep in mind the property can be any eligible FHA property (e.g. condo, townhome, single family residence).

Let’s face it – college is often worthy but expensive. Using UNCC as an example, undergraduate tuition for two semesters will add up to just over $5000 per year. Factor in an $800/month rent for nine months and you’re easily at over $12,000 in annual expenditures. And we haven’t even got into the funding for books and midnight pizza orders.

What if instead of paying rent for their child’s housing the parents use this time as an investment opportunity? How this scenario works is the child/student is the primary borrower (since they will occupy the property) and the parents are nonoccupant coborrowers. All borrowers’ credit must meet underwriting guidelines and the parents’ income typically carries the loan.

There are several benefits to this strategy:
1. A low down payment - currently as low as 3.5% of the sales price
2. A lower, owner-occupied interest rate on the mortgage vs the higher interest rates associated with investment properties
3. Helps the child establish a strong credit history
4. Extra bedrooms can be rented out to help cover the mortgage payment.
5. Tax deductions such as mortgage interest and real estate taxes may be shared among the owners (Consult with a tax advisor for details)

So instead of spending the average UNCC area rent of $800-$1200, the same monthly amount can be put towards ownership of a property in the $115,000 to $175,000 range. What a smart way for a college student or recent graduate to invest in real estate with the help of a family member.

Featured Listing

Rebecca R. Madej — Fri, 07 Jan 2011 19:08:45 +0000

Featured Listing

7108 Conifer Circle

Gorgeous upgrades!

Sales Price: $179,888
MLS #: 981883

Updates include Bruce Hardwood flooring, high end light fixtures, new rubbed bronze hardware throughout. Impeccably clean and professionally decorated. Walk in closets in two bedrooms. Large party patio at rear with gazebo. New cypress planted for added privacy on flat, fenced rear yard with vegetable garden. Gas logs in fireplace. Flat top range/oven. Laundry upstairs for convenience. A pleasure to show!