New Construction in Mobile County Deals

A home warranty plan is an insurance policy. Most plans are issued for one year from the date of closing. They generally cover the "systems" of a home such as the plumbing, electrical, heating and air conditioning, and included appliances. It is always easier to get one of these warranties at the time of sale. The cost runs somewhere around five hundred dollars for a year's coverage and can be renewed one year at a time for about the same price. Often the seller will furnish a plan for the buyer as an inducement to buy the home. When you buy, ask your real estate professional to recommend a good home warranty company.

September 5th will be here in a few days. If you are like me and my husband, you have a bad case of "football fever". War Eagle and Roll Tide! Welcome this year our newcomer, The University of South Alabama. Go Jags! Get out the snacks and invite some folks over to get ready to rumble. Say what you wish about Mobile, Alabama. We love our college football.

Until recently, everyone was talking about how someone over the age of 62 (both spouses must be at least that age) can get an income during their retirement years from the equity in the home they have owned for a long time by using a reverse mortgage. This is still available and is a great option for someone who needs more cash to supplement their retirement and/or social security check. There is another great way to use the reverse mortgage process. The buyer can put up a minimum of approximately 40% of the purchase price as a down payment (a little more if they are barely 62 and a little less than 40% if they are a few years older). The reverse mortgage generates income that just equals the amount of the monthly payment. The result is that there is basically no monthly mortgage payment to pay for the rest of their lives! The insurance and taxes must still be paid. Upon their death, their heirs still get to inherit the home and simply pay the amount left on the mortgage.

For example: A man and his wife are both over 62. They sell their large, paid-for home for $250,000 and decide to downsize into a condo for $100,000. They make a down payment of $40,000 (and of course pay their usual closing costs) and finance the home using a reverse mortgage. They can now keep the rest of the $250,000 for other uses and live in their condo for the rest of their lives without making another payment other than insurance, taxes, condo fees, and maintenance. Cool! Call me and I will direct you to a reverse mortgage specialist who can show you how to get started. Check this out with your tax professional and your financial adviser of course.

Early in the process, ask your RE/MAX agent to give you an estimate of all the costs. These will include closing costs, pre-paid interest and pre-paid insurance premiums, pre-paid taxes, title company fees, attorney fees, homeowner association dues, the real estate commission. Examine and approve of the estimate of fees BEFORE you put down earnest money. Any changes should be discussed with your RE/MAX agent to see how they will impact your cash at closing and your monthly payment.

If you are thinking about buying in the near future, good for you. Interest rates are at record lows. To keep up to date on the Fannie Mae rate, go to my husband John's website. He keeps a daily update posted there. Even better, make an icon of his site for your home page or make the site a favorite. Go to www.johnstikes.info to get this information. He also has a mortgage calculator for your use there. Go all you want and tell your friends to use it. That's what it is there for.