New Listing: 4281 Loblolly Circle SE

 

4281 Loblolly Circle SE

St. James Plantion

3 Bedrooms | 2 Bathrooms

Listed for: $304,900

 

This is a wonderful custom built home located at the end of a no through street in the Trailwood section of St James Plantation. The back yard is very private surrounded by trees. The home has an open floor plan with many windows and cathedral ceilings. The layout is perfect for entertaining with the sunroom bringing the outside in. Sellers have recently replaced the carpeting and the interior is freshly painted. This is one of the best deals in St James and you won't be disappointed. St. James Plantation is a gated community with many amenities including golf, tennis, full service marina on the ICW, private oceanfront beach club, biking/walking trails, indoor and outdoor pools, and athletic facilities. Club membership is active. Buyer is required to activate a club membership at closing.

Ken Keegan Real Estate Broker
(910) 523-0903 mobileEmail Mewww.KenKeegan.com Click here for more information on Brunswick, County Real Estate St. James Plantation

Bank of America will offer mortgages for 3% down

If you're looking to buy a home but don't have the 20% down payment sitting around, Bank of America is now offering mortgages with as little as 3% down.

The new loan program is aimed at helping low- and moderate- income borrowers get home loans for up to $417,000.

To qualify, borrowers can't make more than the median income for their area and need a credit score of at least 660. And the home must be the applicant's primary residence.

Low down payment mortgages aren't exactly new. But borrowers won't have to pay private mortgage insurance with this loan.

Most loans with less than 20% down, like those backed by the Federal Housing Administration, also require monthly insurance premiums on top of the mortgage payments. The premiums are used to help protect the lender in case the borrower can't make payments.

As with most mortgages, applicants must still have a debt-to-income ratio of no more than 43%. But Bank of America will also consider non-traditional forms of credit -- like daycare expenses, health club memberships and rental history -- to help determine credit history.

"There are creditworthy borrowers -- people who have shown good experience paying off debts who fit income restrictions -- and except for the fact that they don't have the money for a down payment, they would be good homeowners," said Terry Francisco, a spokesman for the bank.

Interest rates on the loans will be determined by a borrower's creditworthiness and score, and Francisco said Bank of America's loan option will be cheaper than FHA's rate.

First-time buyers will have to attend a homebuyer education program.

Bank of America (BAC) will sell the mortgages to nonprofit loan fund Self-Help, which will then sell them to Freddie Mac.

Low down payment loans aren't a great fit for everyone though.

Putting less money down means you're financing more, which leads to higher monthly payments and more money paid out in interest over the life of the loan. It also means you have less equity in the home, which could make you more vulnerable if home prices drop.

In the fourth quarter of 2015, the average down payment on a conventional 30-year mortgage was 17.5%, according to LendingTree.

CNN Article

Ken Keegan Real Estate Broker
(910) 523-0903 mobileEmail Mewww.KenKeegan.com Click here for more information on Brunswick, County Real Estate St. James Plantation

Should I buy a home while still paying student loan?

The decision to become a homeowner is likely to be the biggest financial commitment you'll make, and many factors should be taken into account.

First, let's tackle whether it makes sense to become a homeowner. Writing a monthly rent check can seem like throwing away money, but piling mortgage debt on top of student loans can create a long-term budget crunch.

"With student loan debt, your asset is your education and no one can take that anyway," said Certified Financial Planner Travis Sollinger at Fort Pitt Capital Group. "But if you buy a house and you can't afford the payments, they will take the house."

Along with your credit score, your debt-to-income ratio is one of the most important numbers banks look at when issuing a loan. This number helps lenders determine your ability to repay.
To determine your ratio, add up all your monthly debts, including car, student loan and credit card expenses and the potential mortgage payment, and divide it by your gross monthly income. In order for a mortgage to be backed by the government, this number can't be higher than 43%.
Low mortgage rates and high rents make buying an attractive option, but you should be ready to put some roots down. If you're planning to stay in a home for at least two years, buying is more financially advantageous than renting in 70% of housing markets, according to a recent report from Zillow.

Now let's weigh your down payment options.

Down payment size impacts the total cost of a loan. A bigger down payment means you're borrowing less from the bank, which lowers monthly payments. It can also lower your loan's interest rate, reducing how much you'll pay in interest over the life of the mortgage.

The average down payment on a conventional 30-year mortgage was 17.5% in the fourth quarter of 2015, according to LendingTree.

But there are other options if you don't have that much cash sitting around. The Federal Housing Administration backs mortgages that require as little as 3.5% down.

Putting less down will likely lead to higher interest rates on the loan, but with interest rates still so low, now could be the time to pounce. "Given the current environment, it's not going to be that big of a difference," said Sollinger. "It adds up over 30 years, but it's better than continuing to rent for the next five to 10 years. If you itemize, the cost of that money is pretty darn cheap."
Keep in mind that if you don't put 20% down, there's a good chance the lender will require private mortgage insurance. These premiums protect the lender if you miss a payment.

When figuring out how much money to put down, don't wipe out your savings account, advised Bill Van Sant, certified financial planner at Girard Partners. It's a good idea to keep a cushion to cover things like closing costs, moving expenses, home insurance and furniture shopping.

But the decision to buy a home isn't all about money. Becoming a homeowner comes with a lot of responsibilities: You're in charge when the dishwasher stops working, the basement floods, or there's an uninvited critter house guest. Make sure you're willing to handle those responsibilities as well.

Original CNN Article


Ken Keegan Real Estate Broker
(910) 523-0903 mobileEmail Mewww.KenKeegan.com Click here for more information on Brunswick, County Real Estate St. James Plantation

Should I buy a home while still paying student loans?

The decision to become a homeowner is likely to be the biggest financial commitment you'll make, and many factors should be taken into account.

First, let's tackle whether it makes sense to become a homeowner. Writing a monthly rent check can seem like throwing away money, but piling mortgage debt on top of student loans can create a long-term budget crunch.

"With student loan debt, your asset is your education and no one can take that anyway," said Certified Financial Planner Travis Sollinger at Fort Pitt Capital Group. "But if you buy a house and you can't afford the payments, they will take the house."

Along with your credit score, your debt-to-income ratio is one of the most important numbers banks look at when issuing a loan. This number helps lenders determine your ability to repay.

To determine your ratio, add up all your monthly debts, including car, student loan and credit card expenses and the potential mortgage payment, and divide it by your gross monthly income. In order for a mortgage to be backed by the government, this number can't be higher than 43%.

Low mortgage rates and high rents make buying an attractive option, but you should be ready to put some roots down. If you're planning to stay in a home for at least two years, buying is more financially advantageous than renting in 70% of housing markets, according to a recent report from Zillow.

Now let's weigh your down payment options.

Down payment size impacts the total cost of a loan. A bigger down payment means you're borrowing less from the bank, which lowers monthly payments. It can also lower your loan's interest rate, reducing how much you'll pay in interest over the life of the mortgage.

The average down payment on a conventional 30-year mortgage was 17.5% in the fourth quarter of 2015, according to LendingTree.

But there are other options if you don't have that much cash sitting around. The Federal Housing Administration backs mortgages that require as little as 3.5% down.

Putting less down will likely lead to higher interest rates on the loan, but with interest rates still so low, now could be the time to pounce. "Given the current environment, it's not going to be that big of a difference," said Sollinger. "It adds up over 30 years, but it's better than continuing to rent for the next five to 10 years. If you itemize, the cost of that money is pretty darn cheap."

Keep in mind that if you don't put 20% down, there's a good chance the lender will require private mortgage insurance. These premiums protect the lender if you miss a payment.

When figuring out how much money to put down, don't wipe out your savings account, advised Bill Van Sant, certified financial planner at Girard Partners. It's a good idea to keep a cushion to cover things like closing costs, moving expenses, home insurance and furniture shopping.

But the decision to buy a home isn't all about money. Becoming a homeowner comes with a lot of responsibilities: You're in charge when the dishwasher stops working, the basement floods, or there's an uninvited critter house guest. Make sure you're willing to handle those responsibilities as well.

CNN Article

Ken Keegan Real Estate Broker
(910) 523-0903 mobileEmail Mewww.KenKeegan.com Click here for more information on Brunswick, County Real Estate St. James Plantation