Michael & Julianne Crum

What You don't Know Can (Will) Cost You!

The big deal in real estate is not in the (now expired) Tax Credit. The real gold is located in the historic low interest rates. And when combined with the fact that FHA mortgages are assumable you have the home buying opportunity of a life time. A few short years from now these are going to be known as the Good Old Days. Rates are not going to stay this low for long.

Let us take a look at two separate home purchases for $170,000, one purchased today and one, a year from now, both with an FHA mortgage. I am projecting a 1 % increase in mortgage rates.

Smart

Purchase Price $170,000

3.5% Down Payment $ 5,950

MIP 2.25% $ 3,691

Mortgage Amount $167,741

Rate 4.875%

Term 30 years

Payment (P+I) $887.70

Notso

Purchase Price $170,000

3.5% Down Payment $ 5,950

MIP 2.25% $ 3,691

Mortgage Amount $ 167,741

Rate 6%

Term 30 years

Payment (P+I) $1,005.69

Based on the above example Smart will save $117.99 per month or $1,415.88 per year. Over the life of a 30 year mortgage that equals $42,476.40!

But hold on now, there is more to this story!

If Smart is disciplined enough to put that $117.99 a month towards the principal each month he (she) would shave 80 months of payments off the mortgage. That is $ 887.70 a month times 80 months. A whopping $71,016.

Knowledge is power only if you act on it.

Win the day!

Mike Crum

Remax Prestige Realty

East Longmeadow, MA

I love doing open houses. You heard me correctly; I really enjoy meeting everyone who comes out to see the home. Open houses are a way for me to interact with buyers on an informal, neutral setting. I have a no pressure attitude when meeting folks at the showing. I keep it light but informative. I am also very well prepared.

I will always take some time a few days before the open house to research what is going on in the neighborhood. I will print out comparable listings of homes available in the same general price range and amenities as the subject property. I am sure to have all I need to present the home and myself in a professional manner.

I have always wanted to take my open house presentation to the next level. To do things a little bit different from the agent on the next block. What I have come up with is to take the listings of comparable homes that I had been previously printing out and instead make them into a power point presentation and loaded it into my lap top. What this has allowed me to do is have that presentation on and scrolling during the open house. The presentation has all the listing details along with all the photos. I have found this is a great way to get the buyers to spend more time at the open house and ask questions which helps build report.

Here is my quandary. I am not sure how the sellers would feel about other homes being presented in their home. Am I doing my seller a disservice by doing this presentation?

Win the day!

MIke

Crumteam.com

I love doing open houses. You heard me correctly; I really enjoy meeting everyone who comes out to see the home. Open houses are a way for me to interact with buyers on an informal, neutral setting. I have a no pressure attitude when meeting folks at the showing. I keep it light but informative. I am also very well prepared.

I will always take some time a few days before the open house to research what is going on in the neighborhood. I will print out comparable listings of homes available in the same general price range and amenities as the subject property. I am sure to have all I need to present the home and myself in a professional manner.

I have always wanted to take my open house presentation to the next level. To do things a little bit different from the agent on the next block. What I have come up with is to take the listings of comparable homes that I had been previously printing out and instead make them into a power point presentation and loaded it into my lap top. What this has allowed me to do is have that presentation on and scrolling during the open house. The presentation has all the listing details along with all the photos. I have found this is a great way to get the buyers to spend more time at the open house and ask questions which helps build report.

Here is my quandary. I am not sure how the sellers would feel about other homes being presented in their home. Am I doing my seller a disservice by doing this presentation?

Win the day!

MIke

Crumteam.com