Bi-weekly mortage or monthly?

Everyone that pays mortgage payments has surely gotten dozens of solicitations offering a bi-weekly payment plan for their mortgage. This in theory cuts your monthly payments in half and allows you to pay every two weeks instead of once a month, and in turn pays off your mortgage earlier. However, be careful to check all fees and charges at your bank, you could be paying extra fees for this service. The reason this pays the mortgage off sooner is because there are 52 weeks in a year. Therefore, you are making 26 half payments totaling 13 monthly payments instead of the monthly payment plan of 12 payments. To receive the same benefits of this plan without the charges, fees, etc., simply make one extra payment a year by adding a little extra to your payment each month or the total once a year and marking it “payment to principal” on your mortgage coupon. This could pay your mortgage off 6 to 8 years ahead of schedule.

Difference in Short Sale and Foreclosure

There are many common misconceptions when it comes to short sales and foreclosures. Here are a few facts that might help clear them up. Foreclosure is when the bank reposesses your home due to failure to pay your payments. This can be a lengthy and costly proceeding to both you and the bank. Occassionally to avoid the time and money involved in a foreclosure, the bank will accept a short sale on the house instead. A short sale is when the bank accepts less in the sale of the home than that which is owed. For example, if you still owe $175,000 on your loan, but cannot make the payments, the house will be put on the market and buyers will make offers on the home for less and the bank may accept less than $175,000 and forgive the rest of the debt owed. At this point, the seller has no influence on the price the home brings, the negotiators at the bank are handling the proceedings and what they will accept. Realtors are key factors in this process and can make sure the bank gets the proper contracts and documentation, and keep the buyer informed throughout the negotiations because the negotiation process that typically take a day or two can take weeks or more commonly months. Both a short sale and foreclosure affect your credit negatively, but with a short sale you may be able to build your credit back up and buy a new home in a shorter period of time. Some people may ask why the bank would take less than what is owed? 1) They want to get the non-performing loan off their books as quickly as possible and 2) To avoid the full foreclosure process that can be money and time consuming

The Milton Team sold another house!

SOLD: Live Oak Lane, Blountstown, Fl

We’ve closed another house this week… This time in Blountstown, Florida which is located Southeast of Marianna, to a Kentucky couple. This will be their second home to escape the cold weather… It has a little lake behind it that provides a spectacular view in this quaint subdivision.

The Milton Team

Time To Buy Real Estate In The Panhandle…

Now is the time to purchase investment property in Florida’s Panhandle. In late 2009 or early 2010, the new international airport will open North of Panama City, Florida. This will be a great asset and economic boost to the surrounding areas as well. Marianna is located approximately 60 miles Northeast of Panama City, and hopes to gain economically from the influx of visitors the airport will bring to the panhandle. Economists estimate with the new airport in place, the area will grow to be the next “Orlando”. Many investors are banking on it, and purchasing land tracts near the airport site hoping to inflate land prices and cash in on the investment latecomers. While land prices are down and the airport is still under construction, NOW IS THE TIME TO BUY!

Capital Gains Tax

Did You Know?  If you hold a homesteaded property for 2 years and then sell, you won’t have to pay capital gains tax on your profit? Tax free money? Is there such a thing? Some savvy real estate investors would argue that you could purchase a home, live there for 2 years, sell and cash in on the equity, and do it all over again each time investing your tax free money into your primary residence and moving up in value/size. Where better to invest than your own brick and mortar?

Hello world!

Hi All! I’m new to the blog world, so please be patient….. I’m still trying to figure it all out. Check out my new website: www.eramiltonteam.com