A and N Mortgage Homeowner Tips: Making the Most of Your Yard This Summer

Whether it's cooking on the grill, planting a garden, or simply relaxing in a hammock under a tree, homeowner's love their yards. Here are some tips to help you get the most out of the great outdoors.

Outdoor Kitchen 

An outdoor kitchen is perfect for entertaining in your backyard. If your grill will be used under a covered area, include a power vent hood or other method for venting the smoke. The cabinets for an outdoor kitchen should be built to resist the elements. This could be custom cabinets, using treated lumber and plywood, or ones made from a weatherproof material.  

Choosing a Grill 

Appliances and grills for outdoor kitchens are usually made from stainless steel to make them weatherproof as well. While most grills today are gas fired, cooking with hardwoods-like hickory, pecan, or oak-can produce better results. Using starter sticks, rather than lighter fluid, to light a wood or charcoal fire can improve the taste of the food. The insulating qualities of ceramic charcoal cookers, like the Big Green Egg, allow them to be used as a conventional grill or as a smoker oven for slow cooking. 

Grill Maintenance 

Use a wire brush to clean the cooking grate after each use. Once a year, disassemble the grill and clean it thoroughly. Remove cooking grates, soak in liquid grill cleaner, scrub with a wire brush, and rinse. Take out the ceramic plates or briquettes and clean them with a wire brush. Remove the burners and use a wire brush to take off residue and rust. Clean out the burner holes by inserting a toothpick into each hole. Use a wet/dry vac to vacuum out the inside of the grill. Reassemble all the grill components. Light the grill and leave it on for a few minutes to burn off any remaining residue. 

Keeping Cool 

Shade is essential for summer backyard activities. Popular options include: 

Shade arbor: An outdoor arbor covered with vines makes a cool retreat on a hot summer day. 

Roof: Extending the roof of your house to cover a patio works well.

Awning: A retractable awning is a great way to create shade when and where you need it. 

Misting System: Outdoor misters keep you cool by spraying a fine mist of water in the air. Misting systems are available as inexpensive DIY Outdoor Cooling Kits as well as portable misting umbrellas that hook to a garden hose. 

Water Feature: The soothing sound of falling water from a fountain or waterfall can make your yard feel like an oasis during a summer heat wave. Pre-made water features are available, or you can build your own custom water feature for your backyard. 

Keeping You Informed

A and N Mortgage professionals are dedicated to keeping you informed of the latest market trends, household tips and mortgage options. Call A and N Mortgage today to obtain custom loan options designed to fit your needs and help you obtain your home goals.

The 'Welcome Home Illinois Loan Program"

The state of Illinois started a huge advertising campaign 2 weeks ago for a new program called "Welcome Home Illinois". Your members may be calling for more information. The program gives 1st time home buyers (a buyer who hasn’t owned a home in the last 3 yrs. ) $7,500 towards the purchase of a new home which is a forgiven loan after 5 yrs . 

The interest rate is set by the Illinois Dept. Of Affordable Housing and they are offering below market rates. There are income limitations and they go by total household income not applicant income , a family of 3 or more can’t make more than $106,000.00  Below are the highlights:

• $ 7,500 forgiven loan after 5 years

• Below market interest rate

• Reduced PMI rates

• As little as 3% down

• Down payment can be 100% Gifted

• Conventional , FHA and VA products available

I’ve worked with the state's down payment assistance programs for many years and the down side had always been that the state’s interest rates were always .50% - .75% higher than what I could offer in the secondary market. This is the 1 st time they are offering below market rate so there’s really very little downside. 

Cost Effective Ways to Increase the Value of Your Home

Make the most of your hard earned dollars and focus your remodeling efforts on renovations that will boost the home's value and your bottom line.  Condition Buyers will often bargain down your asking price if your home isn't in tip-top shape. Before performing aesthetic upgrades, be sure to tend to your home's basic maintenance projects. A smart and inexpensive way to ensure your home holds its value is to hire a home inspector.  Cosmetics Spend time evaluating the areas that have the biggest buyer impact, like the kitchen and bathrooms. On average, a kitchen and/or bathroom remodel will yield a return on investment of eighty percent or more. Consider updating your home's look with the following quick and inexpensive projects: Paint, Energy Efficient Appliances, or New Fixtures. A free and easy way to spruce up your surroundings is to get rid of clutter.

Call or email today for a complimentary quote!

A and N Tips: Rock That Tax Return!

Smart Ways to Spend Your Tax Refund

Consider using your tax return to maximize your future financial situation

Refi to a Lower Rate

By refinancing to a fixed and/or lower interest rate, you can improve your mortgage savings and your financial situation for years to come.

Spruce Up Your Space

Is your kitchen or bathroom looking a little dingy? If so, consider a renovation. Home renovating and remodeling can drastically improve the value of your home.

Upgrade Your Home

Whether you are planning to grow your family, acquire the perfect vacation home or move to a smaller, more manageable property, your tax refund can play a large part in covering the closing costs and other fees associated with this new purchase.

Does a Property Need to have Appliances?

Credit: Michelle Meiklejohn

Habitable Condition:  Property must be in a condition that is immediately habitable and must contain:

• At least one fully functional bathroom (i.e., shower/tub, toilet, and hand sink).

• Other bathroom(s), if not functional, must be escrowed for repair.

• A fully functional kitchen with appropriate appliances (i.e., sink, cabinets, utilities to support a stove and refrigerator).

• Stove and refrigerator do not need to be present if they are not a built-in, as non-built in appliances are considered personal property. Comparables without appliances are not required.

• If stove and oven are built-in, they must be functional, or the space must be reconfigured to allow for appliance.

 

• Utilities (gas and/or electricity) and plumbing must be functional. If not available for testing, due to "winterization"

New Amendment: Illinois Landlord & Tenant Act

Effective January 1, 2012  For A and N Realtors, Investors, and Landlords: An amendment has recently passed to the Illinois Landlord and Tenant Act which creates a new Section 765 ILCS705/15 "Changing or rekeying of the dwelling unit lock." This New law requires most Cook County Landlords to change locks with every new tenant. If the landlord does not comply with this new rule, which will take effect January 1, 2012, then that landlord may be liable to the tenant for damages sustained because of stolen property by someone with the old tenants' key. MORE INFO HERE

A and N's Home Buyer Tips: Rate Shopping

Tips for Serious Mortgage Shoppers

• Get Educated  Borrowers should know terminology and mortgage basics before they shop.

• Know Your Credit Score   Addressing any issues on your credit report prior to applying for a loan will allow you to take advantage of more desirable mortgage rates and products.

• Shop Your Product Options  Though conventional loans are typically the most desirable, an mortgage insured by the Federal Housing Administration (FHA) may be more feasible.

• Know The Market Trends  Mortgage rates adjust daily. If you find a low rate on a loan you like, consider getting a rate lock. 

I have been receiving a lot of questions about FHA Mortgage Insurance Premium, Here are Some Answers

FHA mortgage insurance is similar to the private mortgage insurance (PMI) required for conventional mortgages with down payments below 20%, but key differences exist:

Up-front Fees: 1% up-front fee due at closing.

Rate: For fixed rate loans, there is an annual premium of 1.1% to 1.15% of the loan amount per year, divided over 12 months. Variable term MIP rates are 0.25% to .50% per month for 15 year or shorter-term loans.

Removal: FHA MIP is mandatory for the first five years of loans with terms more than 15 years (even if your loan balance reaches 78% of the original home value or sales price. PMI premiums can often be removed if the loan balance is below 80% of current market value. Conventional loans automatically remove PMI when the loan balance falls below 78% of the loan amount.

Exceptions: If you have a loan term of 15 years or less and put down 10% or more of the sales price, the MIP will be cancelled after the loan balance falls to 78% (of the original sales price, or the original appraised value, whichever is less). 20% down on a 15-year loan cancels PMI altogether.
How the MIP Affects Your Loan Decision? Considering that PMI payments do not go towards the principle, or add to the value of the home, most borrowers would choose to avoid paying PMI altogether.

However, It's hard to avoid paying PMI without putting 20% down. IF you have good credit history, and the money to put 20% down, then a conventional mortgage is probably better for you as PMI would automatically be lifted. However, if the down payment is a family loan or a gift, you may not qualify for a conventional loan even with 20% down. In that case, an FHA loan with MIP may be your only option, if you cannot afford the higher payments of a conventional 15-year mortgage.

Call A and N Mortgage 773-305-5626 for any more questions!

The Importance of Customer Service and Referrals in the Mortgage Business

Sr. Mortgage Consultant Mike McNamara

FHA -- Fewer Home Approvals

The Federal Housing Administration suffered a 27% drop in market share from fiscal 2010 numbers. Department of Housing and Urban Development numbers show that while FHA refinance volume has increased by 9% since August, the 12% drag on purchase production has hurt the overall numbers in September vs. August. Coupled with this drop in monthly productivity has been a 30 basis point (or 0.3%) increase in delinquency in comparison to August numbers.  


A statistically significant number for the Chicago market specifically is the 13% drop in condominium closings, not surprising, as condominiums have been consistently falling out of favor due to the elimination of spot-approvals, and increased strictness of conditions that have been enforced since the housing bubble burst.
And while FHA loan turn-times remained at a steady 5.9 weeks average from application to closing, it is an overall improvement from the 6.8 week average turn times at this time last year.

What this data shows is that while FHA loans are a solid product, the market for them has been deteriorating, with the expectation that this deterioration will continue for the forseeable future.

The FHA Mortgage Insurance Premium

FHA mortgage insurance is similar to the private mortgage insurance (PMI) required for conventional mortgages with down payments below 20%, but key differences exist:

Up-front Fees: 1% up-front fee due at closing.

Rate: For fixed rate loans, there is an annual premium of 1.1% to 1.15% of the loan amount per year, divided over 12 months. Variable term MIP rates are 0.25% to .50% per month for 15 year or shorter-term loans.

Removal: FHA MIP is mandatory for the first five years of loans with terms more than 15 years (even if your loan balance reaches 78% of the original home value or sales price. PMI premiums can often be removed if the loan balance is below 80% of current market value. Conventional loans automatically remove PMI when the loan balance falls below 78% of the loan amount.

Exceptions: If you have a loan term of 15 years or less and put down 10% or more of the sales price, the MIP will be cancelled after the loan balance falls to 78% (of the original sales price, or the original appraised value, whichever is less). 20% down on a 15-year loan cancels PMI altogether.

How the MIP Affects Your Loan Decision? Considering that PMI payments do not go towards the principle, or add to the value of the home, most borrowers would choose to avoid paying PMI altogether.

However, It's hard to avoid paying PMI without putting 20% down. IF you have good credit history, and the money to put 20% down, then a conventional mortgage is probably better for you as PMI would automatically be lifted. However, if the down payment is a family loan or a gift, you may not qualify for a conventional loan even with 20% down. In that case, an FHA loan with MIP may be your only option, if you cannot afford the higher payments of a conventional 15-year mortgage.

A and N's Home Buyer Tips: Get the Best Refi Rates

• Improve Credit - If you're a homeowner with great credit and plenty of equity, odds are those lower rates are within your reach. But if your score is less than desirable, work at improving it by paying all of your bills on time, paying down your credit card debt, keeping your credit lines open and increasing your credit limits.        

• Loan-to-Value Factor - To calculate your loan-to-value ratio, divide the amount you want to borrow by the current value of your home. If your LTV ratio exceeds 80 percent, you may have trouble qualifying for a refi.

• Short Term = Savings - Paying your loan off in a shorter period of time is not only a surefire way to save money over the life of your loan, but it is also a way to obtain an attractive rate on your mortgage.

• Opt to Pay Points - Buy down your loan's interest by paying points. A point is equal to 1 percent of your loan amount. Those buyers who opt to pay more points when refinancing are often  able to acquire lower interest rates on their loan. This could mean significant savings over the life of the mortgage.