Westfield, NJ

Jumbo ARM Mortgage Rates have ticked down a bit as of late, giving hope that much needed liquidity is being added to the secondary market. At First Interstate Financial Cop., we have successfully added several investors that offer excellent Jumbo ARM Mortgage Rates. These programs are offered in a limited geographic area, so it is important to check with a mortgage specialist to ensure the loan program is offered in your area. As of the close of business on 8/21/2009, the following fully amortized Jumbo ARM Mortgage Rates were available*:

10/1 ARM 5.25% 5.11% APR*

7/1 ARM 4.75% 4.61% APR*

5/1 ARM 4.5% 4.36% APR*

These Jumbo ARM Mortgage Rates assume an owner-occupied property and are subject to qualification. There are various loan-to-value qualifications, asset requirements, income requirements, and credit requirements as well. Since we at First Interstate Financial Corp. are fortunate to offer 4 different programs that have Jumbo ARM Mortgage Rates, you may qualify for a different program. There are programs available for second home financing, cash-out refinances, construction loan take-outs, and purchase money financing. We can offer loans for amounts up to 3 Million or higher, depending on your scenario. Some prudent consumers see the benefit in utilizing an interest-only ARM option to make prepayments on their mortgage balance. Interest-only options are available as well in many areas.

It is important when considering Jumbo ARM Mortgage Rates that one carefully reviews their own financial situation and future plans. A short-term ARM loan is not always a great fit for the consumer, and a reputable mortgage professional should always take into consideration a homeowner's goals for considering an adjustable rate mortgage loan. Additionally, consumers should review the margin, index, and caps of any proposed adjustable rate mortgage loan they are considering. I wrote this article primarily for those currently with ARM loans, but it explains the basics of adjustable rate mortgage financing.

All in all, low Jumbo ARM Mortgage Rates are not for everyone. But for those with specific goals and those aware of the inherent risks, this program can be utilized as a great tool for saving money.

Michael Byrne

First Interstate Financial Corp.

908-531-6170

* Not a commitment to lend.  Rates subject to change without notice.  Equal Housing Lender.  Licensed in CA,CO,CT,DE,FL,GA,MA,MI,MO,MT, NJ, NY,PA,TX,SC,VA

When you are ready to begin your search we can refer you to several agents throughout many different brands around the Westfield area to guide you. www.JustJerseyRealEstate.com provides you a transaction assistant to work with you as well as finds the right agent for your needs. Our referral network is made up of full-time residential experts in all brands that have been recommended by their broker and maintain top agent status. Call, email, or fill out our "find an agent" form on our website when you are ready. Best of luck to you.

Tempting Tax Credits for First-Time Home Buyers

What could you do with $8,000? How about using it to finance a home? In order to stimulate the economy and revive the housing market, Congress has enacted legislation providing a tax credit of up to $8,000 for first-time home buyers.

Just last year, home buyers and owners were able to take advantage of the housing and Economic Recovery Act's $7,500 tax credit. This credit served as a 15 year interest free loan for those who purchased their home after April 9, 2008 and before July 1, 2009. With the new and improved $8,000 tax credit plan in place, buyers have the opportunity to receive a good chunk of cash which, unlike the last year's tax credit, does not have to be repaid.

If you're interested in taking advantage of this opportunity, you only have a short while to act. Determine whether or not you qualify for this tax credit by reviewing the following requirements and by contacting Omega Financial Services today at 908-933-0253 or online at fhaomega.com.

Are You Eligible?

First-Time Home Buyer:
Have you leased your home for the past three years? If so, then you may qualify for the tax credit, as the plan defines a first-time home buyer as a "buyer who has not owned a principal residence during the three0year period prior to the purchase."

Purchase Date:
Buyers are encouraged to act fast as the cutoff date for this $8,000 credit is December 1st, 2009; not at the end of the year, as you might expect.

If you purchased your home before the New Year, you're out of luck, though you may qualify for the housing and Economic Recovery Act Tax Credit. Contact us today at 908-933-0253 to learn more about your tax credit and mortgage program options.

Principle Residence:
According to the plan, a "main home" is "any home that will be used as principle residence," and includes "single-family detached home, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats." Multiple home owners, or those looking to purchase their second, third, or even fourth home, will not qualify for this particular tax credit.

Income Limits:
Those buyers with a modified adjusted gross income (MAGI) of less than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return will receive the full tax credit amount. If it is more, the tax credit amount is reduced until your MAGI meets or exceeds $95,000, at which point you are no longer eligible for the credit. Call your Omega Financial Services mortgage professional at 908-933-0253 to discuss your current financial situation and to determine whether you make a good tax credit candidate.

Stay Put:
In order to qualify for the tax credit, plan to stay put in your new home for a minimum of three years. Buyers cannot move, sell or otherwise leave their home for at least three years after they purchase.

Price:
The plan states that the buyer receives 10% of the purchase price of the home or $8,000, whichever is less. So the monetary amount you're awarded is determined by your new home's price. In order to receive the maximum credit of $8,000, the buyer must purchase a home for $8,000 or more.

Participating in the tax credit program is simple. Determine your tax credit amount by completing the IRS Form 5405 and claim the tax credit on your federal income tax return. With home prices and mortgage rates at all time lows, buyers incentives and tax credits greatly contribute to your goals of homeownership. Discuss your home loan, tax credit and buyer incentive options with your Omega Financial Services professional and to discover the grogram that is best for you.

Keeping You Informed
Omega Financial Services is dedicated to keeping you informed of the latest market trends and mortgage options. Visit us online at fhaomega.com, or call today at 908-933-0253, to obtain custom loan options designed to fit you needs and help you obtain you home ownership goals.

Victor M. Jaramillo

Omega Financial

(908) 933-0253 Ext. 328

Before After

Staging your house to sell is more affordable than you think. Call on The Team of ReStyled to Sell at 732-995-3425 to schedule your initial in home consultation.

Phyllis Pafumi-ReStyled to Sell Staging Homes NJ

I have spoken to several potential sellers in the past few weeks and all of them share one thing in common. They are not happy with the price they can get for their house compared to what they could get just 5 or 6 short months ago.

Here in the Cranford, Westfield, Union County NJ area, we saw a 10-15% price drop in a VERY Short period of time from the 4th quarter last year through 1st quarter this year. For sellers who were counting on $500k for their listing before the holidays, when they find out they can get 450k now, it really throws a kink in their plans. There is GOOD NEWS!!!

What I have tried to explain to all of them is that if they are also buying in the same area, the seller they are buying from is taking the same hit, or even more of a dollar amount hit if its a higher priced home.

My advice is to take the 'punch in the stomach' on the sale, and lock up your buyer, so you can make your offer on your purchase with confidence, and lock in your savings on the purchase, at a GREAT interest rate.

I understand however, that this 'punch in the stomach' will affect the cash you can put down, and will also affect in some cases whether or not you will have enough equity to even sell. This advice is meant for those of you who have the equity position to make your move work, despite the difference in sales price. You will make the equity back in the purchase over time.. Here's how...

Helpful Tip: ask your Realtor to show you what homes were selling for 6-8 months ago in the area you want to buy. I am confident you will find that the home you are buying is also at a discount. If its not priced well, make a fair offer. If it is priced well..buy it, and CONGRATULATIONS, you made a smart decision.

The Math:

If you sell your house for 450k and it used to be worth 500k, that is a 10% loss and $50,000

If you buy a house for $550k and it was probably worth $610k, that is roughly the same 10% decline, but a savings of $60,000. Congratulations, you just likely added $10000 of long term equity.