Building a Home Is a Bargain These Days

Builders, designers, and architects say now is a great time to build a new custom home or remodel an existing one.

Not only are there plenty of unemployed and under-employed workers available, but also property is for sale at bargain prices and construction materials are at bargain levels.

“It makes a lot of sense right now,” said Stephen Melman, director of economic services for the National Association of Home Builders. “People are available to do the work. They are going to bid competitively so I’m sure that will drive the price down.”

The only problem could be financing, which can be hard to arrange.

Source: Investor’s Business Daily, Marilyn Alva (05/27/2010)

Bank of America Rolls Out a Plan to Forgive Principal

Bank of America announced Wednesday that it was rolling out a relief program for roughly 45,000 of its most troubled borrowers that would reduce mortgage principal by as much as 30 percent. To be eligible, homeowners must have missed at least two monthly payments and owe 20 percent or more than their home is worth. Homes must have been originally financed by Countrywide Financial Corp. under specific lending programs. The offer is a result of an agreement with state attorneys general that settles charges over high-risk loans made by Countrywide. The federal government will pay 18 percent of the forgiven principal.

Source: The Associated Press (06/02/2010)

Post-Tax Credit Buyers May Save Money

Missing the tax credit deadline might have seemed like a big mistake to some home buyers, but waiting could have been the smartest thing to do.

Interest rates have fallen so dramatically since April 30th that the typical purchaser of a $350,000 home, financed with a $280,000 mortgage, would have saved a bundle by waiting until May.

At April’s average rate of 5.34 percent, a home buyer would have locked in a 30-year fixed rate loan with a monthly payment of $1,561.82.

The same borrower could have snagged a 30-year fixed rate loan at a rate of 4.625 percent in May and paid $1,439.59 per month.

That’s a $1,467 annual savings. Over 30 years, it’s a $44,003 savings, dwarfing the tax credit.

Source: Informa Research Services (05/26/2010)

13500 Van Brady Road, Upper Marlboro, MD 20772

List Price: $900,000

• 5 bedrooms
• 5 full bathrooms
• 1 half bathroom
• 5+ acres
• 8,127 sq ft
• full basement

Contact me if you’re interested in viewing this home.