Refinance your home or move?...
By Lori Rozsa • Bankrate.com
While the tumultuous real estate market has many people hunkered down hoping it will all blow over, proactive homeowners are looking beyond the uncertainty. They're weighing a decision about whether to refinance their current mortgage or trade up to a house they couldn't afford three years ago.
Making a move more alluring, interest rates continue to hover at 4 percent to 5 percent and tax credits of up to $8,000 for first-time homebuyers and up to $6,500 for buyers who have been in their homes for at least five of the last eight years consecutively are available.
But before you take the leap, real estate professionals caution that the same basic rules about buying a home still apply.
Here are four questions to ask yourself:
How long do I plan to stay in the new home? (The rule of thumb is at least five years to make a new mortgage worthwhile.)
Do I really need to move or just want to grab a deal? Can I cover the costs to close and relocate? With every winner, there's usually a loser, and you could be both if you find a great deal on a bigger house but can't sell your current home.
If I stay in my current home, does it make sense to refinance and maybe add that extra bedroom or build a deck to improve the property?
Take a deep breath and analyze what you really need, not what the market seems to be telling you to do.
"The decision depends on the individual. Are they looking to move because their family has grown or has their job changed locations, or do they want a shorter commute? Those are reasons to look at buying," says Bernard Markstein, senior vice president of the National Association of Home Builders in Washington, D.C.
But don't move just for the sake of moving, says Elizabeth Blakeslee, an associate broker with Coldwell Banker Residential Brokerage in Washington, D.C. Now is a great time to buy, but prospective homebuyers should make sure that's what they really should do. "You have to figure out your motivating factors," Blakeslee says. "If you're just trying to get a deal, you might want to think about it a little longer. These low interest rates are certainly a consideration for people, but as with every decision in life, you have to ask yourself, 'What is my goal?'"
Markstein says there are several good reasons to buy a house now. "Rates are historically low; it's essentially a buyer's market. And for people moving up, obviously they won't get as much for their own home as they would have a few years ago. But if they're reasonable and set a good price and they find another house at a good price, the two together could be a real benefit," Markstein says. If you're not really looking to move, but you just don't want to miss the real estate bargain boat, Markstein says it might be smarter to stay put.
"If you look around and say, 'I like my neighborhood, I like the schools and the services, I like my house, and I don't really want to move,' then you have two choices," Markstein says. "You can do a simple refi, and that's straightforward and will save you money in most cases. Or if you have enough equity, you can refinance and add a room or upgrade something in your house." Loans based on actual equity homeowners have sunk into their property for years are worth asking about. If you bought your house in the last four years and didn't put much money down, "I'd say forget" refinancing, Markstein says. Home prices are down around 2003 levels.
"If you've been paying your mortgage for six to 10 years, chances are you have built up a lot of equity," he says, "unless you live in one of the real estate-depressed areas, like Detroit or South Florida, Phoenix or Las Vegas."
Refis for home improvement usually pay off if you stay in your home for at least another three years, Markstein says. Again, the time may be right. Contractors' fees have come down substantially from the real estate boom.
Blakeslee says if you're on the fence about whether to sell and move or stay and improve, do your research. Get your credit score. Find out what kind of mortgage you could qualify for. Look at the tax credit deals which expire June 30, 2010 (although binding contracts must be signed by April 30) and figure out your real motivation. If it's just to save money, you could stay where you are and add a little extra to every month's mortgage payment.
"You'd be surprised how that adds up and saves you money in the long run," Blakeslee says.
And if you're determined to take advantage of this buyer's market? "Contact a competent Realtor. Get busy doing your homework. Have them run an analysis for you on prices in your current neighborhood and prices where you're looking to buy," Blakeslee says. "It's a great time to buy, but all the other basics still apply."

How to Fight for a Lower Tax Bill Through Returns and Appeals...
With the decline of property values many of us have seen in the last several years and with values not expected to increase dramatically in the near future, many homeowners are faced with the reality that the market value of their homes may be less than their assessed tax value. Our local newspaper, The Atlanta Journal and Constitution recently published what we consider an excellent series of articles on this reality and how you may appeal your tax appraisal if you feel this is the case with your home.
Here are some steps that you could take to perhaps help you pay less:
1. Look at your 2009 property tax bill. If you cannot locate it, you can look it up online. Many counties have searchable databases of residential property.
Metro tax assessors enable you to search for data on individual properties countywide.
Clayton: http://weba.co.clayton.ga.us:8003/indextcm.shtml
Cobb: http://www.cobbtax.org/Search/GenericSearch.aspx?mode=PARID
DeKalb: http://web.co.dekalb.ga.us/taxcommissioner/search.asp
Fulton: http://www.fultoncountytaxes.org/fultoniwr/11_depts_property_taxes.asp
Gwinnett: http://gwinnetttaxcommissioner.manatron.com/Tabs/ViewPayYourTaxes.aspx
2. Check the ZIP code map to see how your house compares with the rest of your ZIP on sales and tax values. Also, what do you know about sales of other homes in your neighborhood? Do home values seem to be going down? If so, the county may have overvalued your house for tax purposes. If you think that’s the case, go to step 3.
3. File a form called a property tax return. List what you think your house is worth as of Jan. 1, 2010. Section C asks you to list last year’s “fair market value” on your land and on your house. Then it asks you to list the value of the land and the house this year. This is where you tell the county the value of your property has gone down. You must send the form to your county tax assessor by April 1. (DeKalb and Gwinnett residents must file by March 1.) The assessor reviews your return and decides whether it reflects your property value. Usually you will receive a response between April and June.
If the county turns you down, you have the right to appeal. This gets a little tricky, but ... you also have the right to appeal if the county reappraises your property (whether you filed a return or not). But if the county doesn’t reappraise, and you didn’t file a return, you can’t appeal. This didn’t matter so much when tax valuations often were lower than actual value. Now, however, tax values are often greater than what your house is worth, which means you’ll be paying too much in taxes. So it’s in your interest to file a return.
File your appeal within 30 to 45 days of receiving your notice (counties have different deadlines). First stop: the county board of assessors. If you can’t reach agreement there, next stop is 1) a Board of Equalization, which is a panel of county residents that hears appeals unresolved at the assessor level, or 2) arbitration. There are two kinds, binding and nonbinding. After that, you may appeal to your county superior court. Note that both arbitration and appealing to superior court carry fees.
More info on appeals: https://etax.dor.ga.gov/ptd/adm/taxguide/appeals.aspx

Home resales rose in September...
Home resales rose in September to the highest level in more than two years, beating expectations, as buyers scrambled to complete their purchases before a tax credit for first-time owners expires.
The seasonally adjusted annual rate of 5.57 million in September, from a downwardly revised pace of 5.1 million in August. Sales had been expected to rise to an annual pace of 5.35 million, according to economists surveyed by Thomson Reuters.
The median sales price was $174,900, down 8.5 percent from a year earlier, and slightly lower than August's median of $177,300.
"There's a mini-boom going on in the housing market," said Thomas Popik, who conducts a monthly survey of real estate agents for Campbell Communications, a research firm.
The inventory of unsold homes on the market fell about 7 percent to 3.63 million. That's a 7.8 month supply at the current sales pace, and the lowest level since March 2007. Nationwide sales are up nearly 24 percent from their bottom in January, but are still down 23 percent from four years ago.
Sales rose around the country, especially in the West, where they grew 13 percent from a month earlier. Foreclosure sales are booming in cities like Los Angeles, San Diego and Las Vegas. First-time homebuyers and investors are snapping up those homes and taking advantage of low mortgage rates. These buyers can also take advantage of a tax credit of 10 percent of the sales price, up to $8,000, if the sale is completed by the end of November.
The tax credit is so important to some buyers that they are adding a clause to their contracts, allowing them to back out if the sale doesn't close by Nov. 30.
While home sales and housing construction have risen steadily after hitting bottom earlier this year, most economists believe that the worst isn't over for home values.
Prices could see a double dip because rising unemployment is causing more foreclosures. The jobless rate, currently at 9.8 percent is expected to rise as high as 10.5 percent next year, causing more people to be unable to afford their monthly mortgage payment.
"There's more supply that's going to come into the marketplace," said Stan Humphries, chief economist at real estate Web site Zillow.com. "That additional supply will outpace demand."
With concerns about the housing market still prominent, Congress is considering several proposals to extend the tax credit for first-time buyers. Senators Johnny Isakson, R-Ga., and Christopher Dodd, D-Conn., want to extend it through June 30, and expand it to include all home buyers, at an estimated cost of $16.7 billion.
Realtors and homebuilders are pressing lawmakers to do so, arguing that the tax credit is crucial to get the housing market back on its feet. "We are not there in terms of removing the consumer fear factor," said Lawrence Yun, the Realtors' chief economist.
One potential roadblock, however, emerged this week. There are concerns that some of the 1.5 million applications for the tax credit are fraudulent. At a hearing on Thursday the Treasury Department's inspector general for taxes questioned the legitimacy of some 100,000 claims for the credit, potentially including some illegal immigrants and 580 people under 18. The youngest taxpayers to apply for the credit were 4 years old.

Can You Get a Loan Today...?
Changes in the housing and mortgage industries have prompted many people, including the media, to wonder: "Can you get a loan today?"
The answer is simple: Yes!
Despite the negative headlines over the past year, there's actually plenty of money available for loans. In fact, reports indicate that over $2.7 Trillion in loans were originated in 2009. That's over $1 Trillion more than 2008.
However, mortgages must make sense in today's terms – not the looser standards permitted by lenders a few years ago.
What does this mean to borrowers today?
Lenders have returned to a pre-2000 mindset – a kind of "common-sense lending" that seeks long-term success versus short-term profits.
That means lenders need documented evidence that a borrower is creditworthy and is likely to repay the loan. This creditworthiness is based on the four tenets of lending: the borrower's ability to pay, willingness to pay, equity in the transaction, and the property itself.
With interest rates at or near all-time lows, lower home prices, and the $8,000 tax credit for first-time buyers, it's worth the time and effort to find out if you can benefit from common-sense lending in today's real estate market.

9/11...
Never forget!
Never again!

Missing an opportunity...
The $8,000 income tax credit for first time homebuyers (as defined by the US Government) expires as of November 30th, unless the Congress extends or modifies the program.
If you are are first time homebuyer, it is now time to get off the fence.
With less than 90 days left until the program expires (you must close the transaction by November 30th) time is short.
And with the new appraisal and truth in lending requirements for home mortgages, transactions are taking longer to close than earlier this year.
Home prices have not been this low since early this decade and mortgage money is still cheap.
Don't be kicking yourself on December 1st for missing this opportunity, it might never happen again.

Homebuyer Protection Alert!...
Recent Federal legislation can impact your closing date.
When completing your Purchase Agreement, even if you are prepared to move forward and close quickly, a more conservative time frame of at least 30 days from the time of the contract acceptance would be a more realistic expectation at this time.
Listed below is information on two pieces of legislation that stand to impact your closing date, and a few bullet points that explain the reasoning behind and effects of each measure.
HVCC: Home Valuation Code of Conduct:
HVCC was designed to ensure that appraisals are conducted objectively and without pressure from parties with an interest in the transaction. Under HVCC, the appraisal and selection of the appraiser will be ordered by someone not directly involved in the origination of the mortgage. This could be either someone else within the mortgage company or a third-party appraisal management company.
A copy of the appraisal must be provided to the homebuyer/borrower no less than three days before closing. The minimum time expectations for receipt of the appraisal should be a few weeks and not days. (While receipt of the appraisal may be received in shorter time frames, conservative expectations are warranted.) Communication between the appraiser and the originating mortgage professional is prohibited. It is imperative that the agents involved in the transaction be prepared at the time of inspection to offer supporting value information if warranted.
HERA: Housing and Economic Recovery Act:
HERA was designed to ensure that the borrower(s) involved in the transaction are given accurate disclosure information (Truth in Lending Statement pertaining to Annual Percentage Rate or APR) regarding the loan they are applying for and adequate time to re-evaluate their decision to proceed in the event of any changes that would impact their costs to finance.
Under HERA, no fees may be collected for the transaction other than those for running a credit report at the initial time of application. Additional fees may be collected only after four business days. Should the APR change by more than .125% on a fixed rate loan or .250% on an adjustable rate loan, the lender must disclose the new APR and the borrower must have a minimum of three business days to review the information before the transaction may proceed.
Items that can trigger re-disclosure requirements include a change(s) in the loan amount, closing date, loan program, any fees that impact the APR or interest rate from the rate indicated on the original loan application.
In cases where documents are sent by mail to the borrower related to re-disclosure of APR and/or providing a copy of the appraisal, anticipate six business days (three to allow for mailing and three to allow adequate time to review them) before a closing can occur.