Tredyffrin, PA

First Time Home Buyer Credit Cliff Hanger . . . To Be Continued!

The Senate is working on approving The First Time Home Buyer Tax Credit Extension. Part of the proposal is to Expand The Home Buyers Credit for existing home sellers/home buyers but so far there is no Senate Vote. Possibly next week there may be a vote ready to go to the House and from there who knows?

From Soap Operas like Days of Our Lives (”tune in tomorrow for the next exciting episode”), to Dallas, we’re drawn to cliff hangers. Who didn’t tune in to find out, Who Shot JR?

Remembering Saturday afternoon at the movies…return on deposit money pennies were saved from collecting empty Coke bottles, and then spent on Saturday afternoon movie adventures. We were transported by the story, as only children can be, until these words popped onto the screen …”To Be Continued”. They were delicious seconds of anticipation. But even before I could read, I’d cover my ears from the hoots and hollers, catapulting me back to reality as the lights came up.

See Main Line Pa Today for more discussion about the First Time Home Buyers Extension:

First Time Home Buyer Tax Credit Cliff Hanger

Mops, Sponges and The Months Supply of Inventory

The Third Quarter Tredyffrin Real Estate Absorption Rate is looking more like a normal real estate market instead of one drowning in inventory.

Some months I have felt like I needed a huge mop to soak up the excess inventory. And in some markets that’s still the image that resonates.

But here in Tredyffrin Township for the Third Quarter Real Estate Market, we’re showing signs of recovery. The months supply of inventory is down to 5.6 months.

See Main Line Pa Today to read more about the Absorption Rate and Months Supply of Inventory in Tredyffrin Township Third Quarter 2009:

Tredyffrin Third Quarter Real Estate Absorption

Good New For The Tredyffrin Real Estate Market? Should I take my Listing off the market for the holidays?

As the Market Dynamics for Tredyffrin Township show, all of the Median Price indicators are down for September 2009 as compared to September 2008 and September 2007.

While it’s painful to write that all of the Median Price indicators are down, we could view these statistics as a positive indicator.

See Main Line Pa Today for information about Tredyffrin Township third quarter September 2009 Market:

Tredyffrin Real Estate September 09 Market Report

I had the privilege today to present Candidate Sean Moir with a check from SERPAC in support of his campaign to be elected as Tredyffrin Township Supervisor. Sean has been vocal in his support in Preserving Resources, Stream Restoration at Crabby Creek, Sidewalk improvements in the Tredyffrin Township and has served on several committees. for more information visit www.SeanMoir.org and remember to vote on November 3rd 2009.

Reverse Mortgages are very appealing to older home owners on Philadelphia’s Main Line as well as in other areas of the United States during these hard economic times. A reverse mortgage is basically when a lender gives you a cash advance on the equity you have in your home. You don’t have to pay back the advance until you either sell the home or die. However, there are several things you should be aware of before getting a reverse mortgage, such as:

1. How much money will you actually be able to borrow? There is a maximum home value which was just raised from $417,000 to $625,500, although you can’t obtain a reverse mortgage for the full value of your home. A formula is used to determine how much you can borrow. This formula takes into consideration how old you are (the older you are the more you can borrow), current interest rates, and your home’s value. You will have to subtract what you owe on your house and any loan fees involved in getting the loan. This is all subtracted from the amount you are able to borrow. To see how much you could possibly borrow go to www.revmort.com/nrmla.

2. Reverse mortgages have very high fees. A Money magazine article states that as well as paying normal closing costs, there is an origination fee of 2% on the first $200,000 of the loan balance and 1% thereafter, plus mortgage insurance premium of about 2% and on top to that there is a monthly service charge. Origination fees are legally not to exceed $6,000, but by the time you add up all of the fees involved, the total amount in fees is usually in the $10,000 to $15,000 range.

3. There is some risk involved. First of all you have to be at least 62 years old before you can obtain a reverse mortgage. If you decide to obtain a reverse mortgage in your early sixties or seventies, you have to ask yourself “Will the money outlast me?” If or when you run out of money, you won’t have any home equity left, so the longer you can wait to obtain a reverse mortgage the better.

4. Alternative ways to make ends meet. Because retirees have seen a rapid decline in their investments, reverse mortgages have increased by 50% over the past two years and the average age of the borrower has shifted from 76 to 72 years old. So, before taking out a reverse mortgage, don’t forget that cutting expenses, moving into a smaller home, or taking out a home equity line of credit are some other viable options to obtaining a reverse mortgage.

Before you are able to obtain a reverse mortgage you are required to meet with an independent counselor who should explain the loan and all of the drawbacks. However, a recent study showed that counselors are not fully explaining all the risks involved so be sure to do your research and try to find out all the pros and cons of obtaining a reverse mortgage to make sure it is the best option for you.