Welcome to the Weichert, Princeton office! On this website you will find a trove of information whether you are a buyer, seller, new to real estate or are an experienced Sales Associate. I update this site often with the latest real estate news and happenings as well as strategies on how to stay relevant in an ever changing market. Enjoy!

-Joshua Wilton, Broker/ Manager

Weichert, Princeton Office

Do you know about all the breaks you are entitled to?

You can deduct interest on multiple mortgages, as long as they do not exceed $1 million. The purpose of the mortgage must specifically be to buy, build or improve a home.

The FHA announced this week that they are revising the insurance premium structure for loans that are going FHA. The upfront premium is going down from 2.25% to 1.00% ->good. However, and here is the kicker, the annual premiumis increasing from a range of 0.50% to 0.55% up to a newrange of 0.85% to 1.55%. These changes are effective withall new FHA case numbers assigned October 4th andbeyond.

What does this all mean?

Let’s take a 5%, $200K loan amount as an example: regarding the upfront premium, the P&I payment would decrease from $1,098 to $1,083 -> a decrease of $15 amonth. However, the increase on the annual premium goes from $94 a month up to anywhere from $152 to $261 amonth. Thus, the “old” all in payment with the insurance built in (less taxes and home owners insurance) was $1,192 amonth. The “new” payment would be in the range of $1,235 to $1,344 a month -> an increase of $43 to $152 a month.That equates to an increase of anywhere from .375% in rateto 1.125% in rate.So what should you do? Well, one, if you are sitting onthe fence looking for a home, and you are going to need touse FHA as your means of financing/qualification (or if youare going to refinance an FHA loan), you have until October1st to get your application in to guarantee that your paymentrate (insurance tax base) does not increase. That’s about 50days, so get moving to take advantage of this quasi “taxbreak”. And two, if you can’t meet the early October deadline, take a look at alternate financing methods afterOctober 4th (i.e. – a Fannie Mae/Freddie Mac loan with traditional mortgage insurance) to reduce your costs and asa better financing alternative.

Confused? Call us with any questions. 609-921-1900

Who would have ever thoughts that rates would every have gone this low? Last year I refinanced my mortgage and boldly told my wife that rates would never get this low again. (Pause as I need to eat those words….). Well, here we are again yet the interest rates are even lower than they were last year.

What does this mean? Simply put, borrowing money has never been cheaper than right now at any point that in the last 30 years. A friend once told me you can make a nice living selling real estate, but you get rich buying it. The reality is that right now is a great time to buy. Prices have come down since 2005 and your monthly payment to hold the real estate will be sooo much less based simply on todays rates. If you are looking to upgrade, buy an investment or at your first home, now is the time. Good luck!

The recent revaluation done in the Princeton continues to roil Princeton residents being hit by an increase in property taxes. The recent surge in public feeling has resulted in multiple meetings between the town officials and Princeton residents.

There is another meeting scheduled tonight at Princeton Twp. Municipal building at 7:30 pm.

Here is an article with further information.

http://www.nj.com/mercer/index.ssf/2010/08/official_home_values_match_mar.html

For many homebuyers, figuring out the details of financing their purchase can be a daunting task. After all, a home is likely the largest purchase a person makes in their lifetime. One of the decisions to be made is whether to go with a standard or low down payment mortgage.

Tim McLaughlin, a senior vice president for Weichert Financial Services, offers these tips:

• Amount of Cash On Hand and In Reserve. Standard mortgages require at least a 20 percent down payment, while with an FHA loan you can put down as little as 3.5 percent of the purchase price. If you go with a low down payment loan, you don’t have to invest as much of your money and can keep money in reserve to invest or to use for home improvements.

• Private Mortgage Insurance. One of the drawbacks of a low down payment loan is that you will be required to obtain private mortgage insurance. This is a type of insurance that protects the lender against the possibility of you defaulting on the mortgage. It will add money to your monthly payment, but can be removed once the balance on your mortgage is less than 80 percent of the home’s purchase price.

• Interest Rate. Many times, lenders offer a lower interest rate to borrowers who make larger down payments. Homebuyers need to weigh the cost of putting a small amount of money down, since monthly payments can be more if interest rates are higher.

Of all Google’s free tools, Google Keywords might be the most useful for real estate agents looking for more website traffic. I allows you to see what your customers and potential customers are searching for on the internet.  For example:

Over 60,000 searches were conducted last month for the search term ‘princeton homes for sale’! An incredible number.

So in a sense, Google keywords give you real time information as to what the customer wants and allows you to adjust your online marketing to intersect with those customers. Here are a few steps to follow:

1. Open up Google Keywords and type in a word or phrase – “Montgomery Homes for Sale,” for example. You can place in whichever town or section of town that you want to research. Another good thought is to search a specific neighborhood, such as “Canal Point NJ.” You will be surprised by how many people are searching at a very micro level.

2. Several lists will appear that offer you details on the number of searches that took place on Google for those specific keywords. You can sort results by clicking on any of the top words that appear in blue.

3. As you look down the list you will find various terms that have a less competition than the one you typed in. You will want to  focus in on these keywords.

4. Once you have decided on a keyword string that you want to research simply click on it and it will take you right to Google search results and allow you to see the websites that you are appearing with.

“Montgomery Homes for Sale ” faces some stiff competition from the likes of realtor.com and zillow.com, but scrolling down the list, it’s clear that if we focused in on more local keywords – “Cherry Valley Homes, Montgomery,” for example, we’d have a much better chance of getting noticed.

If you have questions as to how you can use the free information at Google to build your online strategy, drop me a note and I will help you: jwilton@weichertrealtors.net

Sometimes we think that the foreclosure crisis is an urban problem or exists only in California or Nevada or they overbuilt. Here is an article from the NY Times that sheds some light on the foreclosure crisis and how it has affected the more affluent communities.

http://www.nytimes.com/2010/07/09/business/economy/09rich.html?src=me&ref=business

Rates on 30-year mortgages continue to fall and are now at the lowest point in five decades, according to Freddie Mac.

Coupled with attractive prices, these incredibly low rates make buying a home more affordable now than at almost any point in history.

This is fantastic news for homebuyers and sellers. Buyers can take advantage of high home affordability and save tens of thousands of dollars over the lifespan of a 30-year loan by locking in at these never-before-seen rates.

Tim McLaughlin, VP Weichert Financial Services

Getting a low down payment mortgage can provide you with a means to purchase a home without coming up with a large amount of money upfront. While this type of mortgage can be beneficial, there are a few potential drawbacks that you will need to know about to analyze if putting more money down is right for you. Here are a few things to consider about low down payment mortgages.

Low Down Payment

With a standard mortgage without mortgage insurance, you are going to have to come up with at least 20% of the purchase price out of your pocket. This can be a very significant investment for first time homebuyers or when you get into more expensive homes. When you opt to go with a low down payment mortgage, you will be able to invest a lot less of your own money. For example, with an FHA loan, you can put down as little as 3.5% of the purchase price.

Keep Reserves

The biggest benefit of getting this type of mortgage is that you are going to be able to hold onto your cash reserves. When you put a substantial amount of money down, this is going to cut into the amount of savings that you have. Being able to have a large amount of money in savings is going to be beneficial in a number of different ways. You will have capital available to invest, to furnish your home, for emergencies, and with higher reserves, that will also help in the qualification process.

Private Mortgage Insurance

One of the drawbacks of getting a low down payment mortgage is that you are going to have to obtain private mortgage insurance. Private mortgage insurance is a type of insurance that you must pay in lieu of putting 20% down. The investor is going to require this in order to insure themselves against the possibility of you defaulting on the mortgage. If you default on the mortgage, the private mortgage insurance company is going to pay the lender a part of the balance that is owed. Private mortgage insurance is going to add money to your monthly payment, however, once your loan to value reduces to 77.5%, via appreciation or via principal reduction, the mortgage insurance may be removed.

Interest Rate

Something else that you will want to take into consideration is the interest rate. Many times, lenders are going to give you a lower interest rate when you make a larger down payment. Therefore, you are going to have to decide whether putting a small amount of money down is going to be in your best interest in the long run. If your interest rate is higher, your monthly payment may increase.

Making the Decision

If you can get a low interest rate and the private mortgage insurance is not too unbearable for you, getting a low down payment mortgage can be beneficial. Just make sure that you are not going to be paying too much money overall so you can avoid paying extra upfront. Need help analyzing? Ask us how!