Archive for March, 2008
New Orleans Real Estate Loans, De’ ja’ vu
March 7th, 2008 categories: Julie's Mortgage Tips
A year ago it was “No Borrower left behind” when it came to getting a mortgage. Those times have ended! Mortgage companies and banks are tightening up on their lending policies. Buyers with good credit and good income are even feeling the credit crunch.
These are some of the recent changes to Conventional Financing that conform to Fannie Mae and Freddie Mac Guidelines:
- No more 100% financing.
- No more Stated Income loans.
- Private Mortgage Insurance (PMI) is not available for clients with credit scores below 575.
- Larger down payments on condominiums are required.
- Lenders are taking harder looks at the finanacial stabilty of Condo Associations.
- Loans are almost impossible to get for clients with low credit scores and with out large down payments.
It feels like we are going back in time to the lending practices we had in the 80’s. Isn’t it a coincidence how time repeats itself?
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New Orleans Warehouse District Condos, Gallery Row Condos at 448 Julia Street
March 6th, 2008 categories: New Orleans Condo Reviews, Warehouse District
The Gallery Row Condos located at 448 Julia Street are near the corner of Magazine Street in the middle of the New Orleans Warehouse District. The 448 Julia Street is above an art gallery and next to the New Orleans Children’s Museum. The condos are actually 3 separate buildings that are grouped together with one in the rear and the other two facing Julia Street. The main entrance is on Julia Street.
The 2 buildings facing Julia Street are far better than those in the rear in terms of light, size and historic value. Many of the 47 units in the four story buildings are one bedroom units ranging in price from the 180’s to the high 220’s. The difference in price will be reflected in the updates, size and location of the unit within the complex. Gallery Row Website . The prices have been stable since 2005.
Most of the Gallery Row condos come with garage parking or in a secure parking lot on Magazine Street. The condos are well managed and the common areas are well maintained. The amenities include a small gym, secure entrance gate, elevators, a roof top viewing area with a small plastic pool and Bar-b-Que grills. There are also several courtyards in the rear. The ceiling heights, windows, brick walls will vary depending where the unit is located. Many have had the walls painted along with the beams. This tends to take away from the New Orleans Warehouse feel.
Far and away the better units are those facing Julia Street and the courtyard pictured below and above. Each of these units have three windows looking over the rear courtyard. Over half the units were redone in 2004 when the units were sold as condos in an apartment conversion, some were bought as they were. The conversions had granite counter-tops, stainless steal appliances, new light fixtures, fans and floors. The Gallery Row units are perfect for someone working downtown and those working or going to school at the local medical schools, LSU and Tulane. The units are worth looking at if you are shopping for a unit in the 200k range in a smaller complex that has a great location. Like I said most will have parking and easy parking at meters on the street. They would also make great second homes as the the French Quarter is a mere 7 short blocks away and an easy walk to River Walk.
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New Orleans Condos, Using State Bond Money to buy your condo, good deal?
March 5th, 2008 categories: Julie's Mortgage Tips
Like clock work, the state of Louisiana and various Parishes will have Bond Money for people to buy not just homes but condos as well. The State Bond money will be out on a regular basis and have a few new wrinkles and rates on each issue. The last issue was just completed. There has not been any first time home buyer limitations and the income cutoff has been around 62k for a family of two. Jefferson Parish will generally have an issue, Orleans Parish is much more infrequent and no one knows it exists when it does come out. The interest rates are fixed for the duration of that Bond Issue.
The value is in that the Bond Authority gives you a credit for about 4% which can go for closing cost and down-payment. You have to qualify for a regular loan and then fit into the program. The rates are fixed 30 year rates that are very competitive and will not change during that issue. If you buy a condo for 160k then you will get a credit of $6400 to help you with closing. If you do not want the assisted part or the credit you will get a much lower rate. You have to have a real estate contract before signing up for it.
You have to stay tuned as this is a great deal for many people who fall under the income limit. You can use this with a conventional loan or an FHA loan. I had 10-12 clients that were able to take advantage of these issues. Julie Baudier will have all the info as each Bond Issue is announced. Check out my site to look at past Bond Issues. If You are a teacher it could be even better on the interest rate plus the 4% credit. Checking it out ahead of time gives you more options and a change to save money.
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Kenner Condos, Avante Garde Condos, Great Choice for under 150k 2/2.
March 4th, 2008 categories: Jefferson Parish, New Orleans Condo Reviews
The Avante Garde Condos in Kenner gives you another piece of the Metro New Orleans Condo Market. Its a segment of the market where you can find some nice 2 bedromm units for under 150k. Located in Kenner off West Esplanade near the Esplanade Mall , this one of the few developments that were built and developed as condos. It about 40 minutes during peak traffic to downtown New Orleans and much quicker with no traffic. Shopping, parks, playgrounds, markets are nearby.
The complex has 249 units broken down into many separate buildings around an oval drive with the pools and tennis courts in the middle of the complex. Assigned parking and guest spots are easy. Pets are welcome. The complex is very quiet for the amount of residents.
Its worth saying again that the Avante Garde Condos are one of the nicest condo complexes where you can buy a nice two bedroom unit for around 150k and under. The most popular units are those that have balconies, sky lights, and vaulted ceilings. The units are all on one level but have stairs to get to the second floor. This is the favorite floor plan unless you need a flat from the front door and those are the first floor units and generally sell for less.
There are a few 3 bedroom units sprinkled through out the complex. Many of the units are going to have some degree of updating since the original units are approaching 25 years. The prices will reflect this as the big factor in determining the value. You can check out a current listing that is listed for $149,144 as its #144 of Avante Garde Condos
The condo fees are very reasonable at $180 per month which covers water, common area upkeep, homeowners insurance and exterior maintenance. You can get a condo insurance policy for your contents such as furniture and the inside of the unit. It should cost less than $500 per year. The prices have been fairly stable for the last couple of years. Finding one that is dated if you like to upgrade is also possible if you like sweat equity. Some of the units will have two full baths and that is preferred choice.
Last year I sold several units here. One girl was a nice young nurse who was working at East Jefferson. One was to a young engineer who had taken a job at Avondale Shipyards. One to two students who were going to Xavier University in New Orleans. All bought similar units just in varying degrees of updating. Just to give you an idea as to who is moving in and out of Avante Garde in Kenner. it is also FHA approved which means a low down paymnet of less than 3% is in the cards. One of the better choices in Kenner in this price range and types.
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New Orleans Sailing, the Lake or the Mississippi River?
March 3rd, 2008 categories: Lakefront, New Orleans Origionals
Lake Pontchatrain, in my mind, is the best metropolitan sailing venue in the country. Sure the Chesapeake is beautiful, but unless you live in mega-buck Annapolis, there is a two hour drive between you and your boat. If you live anywhere but Uptown, the Lake is a bike ride from your home, bike as in Schwinn, not Harley.
Because the Lake is immediately north of the city, it is a sailor’s paradise. The prevailing winds here are out of the south, so we Lake sailors have great wind and minimal waves. Today was an awesome example, winds south, southeast at 20 knots and there was not a ripple on the water as we zipped along about a half mile off the beach.
For cruisers, there are trips across the lake to overnight in one of the bayou anchorages. For racers, there are races one night each week and on the weekend. For the more adventerous in the group, the Lake feeds right into the Mississippi Sound and the Gulf.
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New Orleans Condos, The Homestead Exemption is yours! But You have to file for it?
March 2nd, 2008 categories: Real Estate News
If you live in your condo and consider it your Louisiana residence you are qualified to receive a homestead exemption of $75,000, exempting $75,000 of value from your property taxes. The only caveat is that you have to file for it at your assessors office in your Parish after you have gone to an act of sale. If you have a condo that you paid $175,000 and you file for the homestead exemption then the millage rate is times $100,000. $75,000 time a mileage rate of .1288 is a savings of $966 for every year.
The rules are different in each Parish as to what you need to bring with you. In St. Charles Parish you can bring your HUD statement and that is all you need. In Jefferson Parish the assessor has to have the copies of the stamped property filing. In New Orleans you may be able to fax the paperwork to the assessor depending upon its rules. Its a saving on your property tax bill. If the millage rate is 12 mills then you save $900 per year. The tax rates or mileages will vary by community, city and Parish.
I listed home at the end of last year where the seller had never filed for the exemption. He did not get it and thus overpaid their property taxes. This was a recent case where the young doctor was doing his residency and did not file for his exemption costing him over $5000 for his four years that he was here. Ouch! Trying to get money back is harder than getting brain surgery. This only has to be done once so do not forget!!! See a related article on New Orleans Reduces Milleage Rates and Homestead Exemptions.
Federal FibreMills Courtyard , Winters Title Millage Rates.
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New Orleans Condos, Ten Years is a long time! Time is on your side?
March 1st, 2008 categories: Condo Knowledge, Julie's Mortgage Tips
Knowing how long you plan to stay in your condo can have a big impact on your monthly note. Ten years is a long time, think about what you were doing ten years ago? The rate for 10 year fixed rate loan can be as much as 3/4 point lower as that of a 30 year fixed rate Loan. Both loans are fixed and are paid off like they are a 30 year term. Loans are figured with a risk factor and a 30 year loan is riskier than that of a 10 year loan.
Many lenders may not mention the variety of loan choices as they would rather lend you many at 6.5% rather than 5.75%. Most people stay in a home for something like 8.5 years as an average. If you look at condo the time is often less due to a number of factors that deals with the lifestyles of the people who buy. People get married, are transferred, are promoted, opt for a home, opt for another condo among a variety of reasons.
What does this mean for you? You can get a loan for 200k for 10 years at 5.75% which costs you $1168 for principal and interest. You can get a 30 year loan at 6.5% for $1266 per month. The difference is $98 per month. If you stay in your condo for five years you save almost $6000 and you could have saved that or invested it. The gap between the loan does change so the gap may be smaller or larger depending upon the interest rate markets. You should always save as time is money.
If you know your time is going to be shorter then this is definitely something to consider. How do you come out ahead? Remember rates have been moving around a lot lately so its always a must to check and ask about the fees. Eric
10/1 ARM
” The interest rate for this loan will stay the same for the first 10 years. The term for this loan is 30 years. At the end of the first 10 years this loan will automatically adjust to an adjustable rate mortgage. Usually the adjustable rate mortgage is a one-year Treasury arm. The interest rate for this loan will adjust once per year. The first adjustment may be larger than the remaining adjustments. You should check to see if this loan has a cap on the maximum it would adjust at the first adjustment. The loan should also have a cap for the maximum percentage that it can adjust each year after the first adjustment. Usually with a treasury arm loan the cap is 2% every year. You also need to check that this loan has a cap on the maximum percentage it can adjust during the term of the entire loan. Be sure to calculate your payment based on the total maximum payment your loan could ever reach. That way you will know if you can make that payment without any financial difficulty.”
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