Pros and cons of buying a house with a pool Richard Tegley May 29, 2013; 01:49 PM As the weather heats up, some home buyers may be considering purchasing a home with a pool. If a home that is in foreclosure has a swimming pool that has been neglected, it is possible that it is hiding years of neglect, bad siding, algae, and other mysterious damage. It can be difficult to estimate what pool repairs may be needed during a basic home inspection. If the home is a short sale, the pool may be sitting for months longer and cost more than the buyer initially estimated. On the other hand, a pool may add extra value to the property, as well as years of personal enjoyment. Adding a pool to an existing home generally is not advisable for a buyer who does not plan to live in the home for long term. Dollar-for-dollar, buyers will never recoup the costs of adding this amenity. A new report finds that borrowers who had their mortgage payments reduced as part of the Home Affordable Modification Program are still failing at an “alarming rate” to stay current on their mortgage. The borrowers had their mortgage payments reduced, on average, by more than $400 a month. For example, 46 percent of a few thousand permanent HAMP modifications issued in 2009 during the third quarter have re-defaulted. Nearly 40 percent of those made in the fourth quarter of 2009 also have re-defaulted, according to the report from the Troubled Asset Relief Program or Sigtarp. The longer home owners remain in HAMP, the more likely they are to re-default out of the program, according to the report. Under HAMP, banks aim to reduce borrowers’ monthly payments to around 31 percent of their current income. The National Association of Home Builders predicts that single-family and multi-family housing starts will post double-digit gains this year over last year. However, the biggest obstacles are labor and lot shortages, rising costs of building materials, obtaining construction credit, and overly restricting mortgage-lending rules. Prices of building components — such as gypsum, softwood lumber, and concrete — are above 90 percent of their housing boom peak. The Federal Housing Administration (FHA) has always been the first choice of low down payment — borrowers who could not meet the private sector’s more rigid underwriting standards. And, as the housing market descended, the FHA picked up the slack as private insurers backed out of the market. As of April 1, the FHA raised its annual premium by 0.05 percentage points to 0.1 percent, depending on the loan amount and the loan-to-value ratio. That increase is in addition to an earlier increase of 0.1 percentage points in the annual fee instituted in April 2012, as well as the hike in the upfront mortgage insurance premium, to 1.75 percent of the loan amount, up from 1 percent. Lenders require insurance, either private or government-based, on mortgages in which there is a down payment of less than 20 percent. Such loans are considered more likely to default than those in which borrowers have more of their money on the line. Currently, the FHA will allow borrowers to cancel PMI coverage once their loan-to-value ratio reached 78 percent of the original loan balance, and the borrower has made payments for five years. Starting June 3, the FHA will require borrowers to pay the premium as long as the loan is in force. In other words, the only way to stop paying PMI is for the borrower to refinance or otherwise pay off the loan. The largest group of immigrants entering California originates from Asia (43 percent), while the second largest group is from other countries in North America (31 percent). By country, Mexico is the popular country of origin contributing 13.5 percent of the total immigrant group simply due to close proximity to the state, and eight percent from China. The 2013 Profile of Buyer Home Feature Preferences by the National Association of REALTORS® in those surveyed found that the following features were considered “very important” in a new home as opposed to those who felt these features were “very important” in a previously owned home. Walk-in closet in master bedroom New kitchen appliances Eat-in kitchens Hardwood floors Granite countertops Kitchen island Stainless steel appliances People want photos. They also want detailed information about the property — all the information they will need to imagine themselves living there, to help them decide if the home is right for them. Information that is considered important: Photos Detailed information about the property Virtual video tour Agent contact information Neighborhood information Interactive maps
Posted on: Tue, 11 Jun 2013 16:31:27 +0000
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