Posts filed under 'Mortgage Financing'

Increase Your Power When Buying and Selling a Home

One of the many services offered by Colleen Rock and The Rock Group is a loan shopping service. This service can find a way for buyers to get more home for their money, as well as present listings as an even better value.

Many buyers today mistakenly assume that when buying a home, they have to put down more than five percent. Otherwise, if they put down less than five percent, they are stuck with FHA financing that has expensive private mortgage insurance (PMI), which can raise their monthly payments by a couple hundred dollars per month, on average.

However, by working with The Rock Group and their loan shopping service, qualified buyers with less than 5 percent down may not have to worry about PMI. For example, Colleen Rock can inform her buyers of a conventional (not FHA) loan that allows for 3 percent down with NO PMI attached.

By skipping past the costly PMI, this can allow buyers to look at homes with higher asking prices, but still keep their monthly payments as low as originally budgeted, or get the home they desire for less per month than they expected. The Rock Group’s loan shopping service can give buyers home purchasing power they never realized they possessed.

Additionally, The Rock Group works with home renovators. Their loan service has a product that merges both the purchase price and the expected renovation costs into a single loan. This is not a FHA product, but rather a conventional loan, with a down payment of as low as 5 percent.

Not only have these loans helped buyers who are clients of The Rock Group, but sellers as well. Colleen Rock has been able to use her loan shopping service to educate the buyers of her listings of ways they can save money on their monthly payments, making it so Colleen’s sellers didn’t lose deals to buyers who wrongly assumed they could not come up slightly to purchase the house they wanted.

There are restrictions for these loans, of course, so it makes sense to talk with Colleen Rock and her loan specialists to find out how they can help you.

The bottom line is that this loan shopping service has put people in homes they otherwise would have never been able to consider.

When considering who to work with to meet your real estate needs in the northeast Ohio areas, the decision is an easy one… Contact Colleen Rock and The Rock Group, Cleveland’s real estate experts, at 440.895.1111.

home loan balancing act


1 comment December 29th, 2014

Using Home Reversion Plans to Access Home Equity

For the 60+ homeowner, a home reversion plan can be the perfect solution for securing the money they need to do the things that they want to do. What is a home reversion plan? Does the homeowner need to repay the borrowed money?

For homeowners who have reached the age of 60, using home reversion plans to access home equity is an affordable option that can ease financial strain. This type of plan involves a process in which the homeowner trades a portion of the equity in his home to a reversion company in exchange for a sum of cash. The homeowner determines how much of the home equity he wishes to trade to the reversion provider. It is possible to trade a portion of the home’s equity or the entire amount.

The homeowner may also determine whether he wants to receive all of the money at once or in monthly installments. Some homeowners opt to receive all of the money in order to maintain control of the funds. The money can be placed into a bank savings account, checking account, savings bonds, or CDs. It can be invested in stocks or simply placed into a safety deposit box until needed.

For those homeowners who have difficulty managing their finances, the option to receive monthly installments is generally a better one. With monthly installments, the homeowner can receive enough money to cover his monthly expenses, allowing him to live a stress free existence, while still having enough money to use throughout the remainder of his life.

Interest is not charged with a home reversion plan. The homeowner never needs to repay the money to the reversion lender until the home is sold. In the event that the homeowner decides to sell the property and move into a retirement facility, the money is repaid at that time. If the homeowner dies, the individual who inherits the property is responsible for repaying the lender for the amount of money that was borrowed through the home reversion plan.

May 21st, 2011

Homebuyer Tax Credit Extended and Expanded

As part of the governments action to stimulate the real estate market, President Obama has signed the bill that includes both an extension on the current $8000 First Time Homebuyers Tax Credit and an expansion by first, increasing the income limits for first time buyers; and second, by providing a $6500 tax credit to current homebuyers who wish to purchase a new or existing home.

From a recent article released by NAR (National Association of Realtors), here are the basics: 

The legislation “Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010. Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Who Qualifies for the Extended Credit?

  • First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
  • Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.
Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer’s Credit Amount Determined?

Each home buyer’s tax credit is determined by tow additional factors:

  1. The price of the home.
  2. The buyer’s income.


Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,  single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.”

November 10th, 2009

Nix the Waiting Game Now

amerifrontdoor In this weeks release, the MMG report (Mortgage Market Guide) provided valuable insights into the upcoming interest rate trends…

“BE WILLING TO MAKE DECISIONS.” General George Patton. And that’s exactly what the Fed did last week at their regularly scheduled Federal Open Market Committee meeting. But just what did they decide…and what do their decisions mean for home loan rates?

The Fed said they are going to ration out the remaining commitment of Mortgage Backed Security purchases through the first quarter of 2010. There will be no additional buying, but instead, a longer weaning off of the program. There was some speculation about the Fed increasing the amount of buying above the $1.25T committed to, and last week’s statement is the Fed’s nice way of saying “no.” They will not be buying more in quantity, but what they will do is attempt to provide a smoother transition to normal market conditions.

It is a given that once the Fed ceases its purchases, that interest rates will climb significantly higher…most likely back above the 6% area. So instead of a hard transition with a large bump in rates, the Fed is attempting to allow rates to gradually rise. This means that waiting to purchase or refinance will very likely mean a higher interest rate.”

If you’re a buyer and wish to take advantage of the market conditions, please take time to seriously consider the facts and the overall upward trend in real estate sales over the past few months.  

Bottom line, call your Realtor today. If you’re  not working with a Realtor,  please contact me direct. Even if you are outside of my area of expertise (NE Ohio) I would be more than happy to discuss your real estate needs and assist you in working with a professional from your local area.

September 29th, 2009

$8000 Tax Credit

$8000 Tax Credit Countdown

Less than 3 months left on the First Time Buyers $8000 Tax Credit.

If you or anyone you know has been considering buying a home and wish to take advantage of this opportunity, CALL me today.

 Here are the basics: 

  • 10% of the sales price with a maximum of $8,000.
  • For purchases closed between January 1, 2009 and November 30, 2009.
  • Buyer can not have owned a home in the last three years.
  • Maximum income is $75,000 for a single purchaser and $150,000 for a couple.
  • Home must be used as a principle residence.
  • NO repayment required as long as the buyer lives in the home for three years.

Although attempts are being made to have this program extended, we have been given no guarantees.  For updates and detailed information visit

September 6th, 2009


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