If you are thinking about refinancing a loan or requesting your private mortgage insurance (PMI) be removed, you should know your loan to value ratio.
It is easy to figure out using these steps:
If you will be applying for a loan:
1) Start with the purchase price of the property as the value for the property. (example: $150,000)
2) Subtract the amount of your down payment ($20,000).
3) Take the loan amount which will be the purchase price minus the down payment ($130,000)
4) Divide loan amount ($130,000) by the purchase price ($150,000=value). It would look like this: $130,000 divided by $150,000, which equals 0.87, or 87 percent=your ratio.
5) Use this number with your lender when referring to your loan.
Most loans with an LTV over 80 percent require PMI.
If You Already Have a Loan:
1) You should get an appraisal of your property. This is the only way to get an accurate assessment of its value. If you are just doing this so you are aware of your loan to value ratio, you can save the appraisal fee and estimate the value by comparing your property to similar homes in your neighborhood that have sold. This will be the value number for the equation
2) Look on your most recent loan statement to find out how much you owe (your balance). This will be the loan number for the equation.
3) Divide the loan figure by the value figure. This is your ratio.
If you are requesting the removal of PMI, you will have to get an appraisal. In removing PMI, you may request in writing to your current lender that the PMI be removed if the ratio is 80 percent or less. If you request an appraisal and the value is not high enough, you will still pay for the appraisal.
When you apply for a loan, mortgage loan or any other type of credit, Lenders use your debt to income ratio (how much you owe on credit cards and loans compared to how much you earn) to help evaluate your credit.
How You Can Figure Your Debt To Income Ratio:
1) Add up your total net monthly income. This includes your monthly wages and any overtime, commissions or bonuses that are guaranteed; plus alimony payments received, if applicable. If your income varies, figure the monthly average for the past two years. Include any money earned from any other additional income.
2) Add up your monthly debt. This includes all of your credit card bills, loan and mortgage payments. If you rent, be sure to include your rent payments.
3) Divide your total monthly debt by your total monthly income. This is your total debt to income ratio.
4) If your ratio is higher than 0.36, which professionals would call a score of 36. The lower the better. If the score is higher than 36 it might cause an increase in the interest rate or the down payment on a loan you apply for.
Remember:
When you total your monthly debts, use the minimum payment on your statements.
When calculating your income, a lender usually only considers money from a job that you have been at for at least two years.
Unreported earned income cannot be used in the calculation.
AC Associates helping individuals across the United States reach their financial goals. We offer a program to Home Owners on how to successfully sell their home by offering Owner Financing. Purchaser of Owner Financed Mortgage Notes, Deeds of Trust, Lawsuit Settlements, Life Insurance, Lottery/Contest Winnings and Seller Financed Business Notes. http://www.acassociatesusa.com
Tenant Reps and Commercial Realtors - What’s the Difference By Tim McEvoy
When you think of a business about to relocate to a new area, or renegotiate a lease for its present location, you might think the proprietors would consider employing a real estate agent or a lawyer to handle the various issues involved. While both are reasonable options, it may be more beneficial to the business owner to consult with a tenant representative instead. While a tenant rep is involved in commercial and industrial real estate, there are subtle differences between reps and Realtors every businessman should know.
Reps Work on Behalf of Tenants, Not Landlords
Many commercial real estate professionals exclusively represent tenants. Such exclusive tenant reps never work on behalf of owners and developers. Other real estate professionals divide their practice between both tenant and landlord representation.
The Society of Industrial and Office Realtors reports that more than half of those who have earned the Society’s coveted professional designation – “Specialist, Industrial and Office Real Estate†– have practices that include tenant representation.
Tenant reps have made a name for themselves during the past 10 to 15 years, since real estate agency laws required real estate brokers to disclose that they are working on behalf of the landlord, not the tenant. Your goal in working with a tenant rep is to obtain true economic savings and secure space on terms that best serve your needs over the life of your lease. While working on your behalf, a good tenant representative should generate savings and benefits that far exceed the cost of his or her professional compensation.
The Benefits of Working With a Tenant Rep
Having a tenant rep on your side can greatly empower your business and save you money in the long run. A tenant rep can:
Analyze your space needs.
Investigate all available properties and determine which are the most appropriate for your needs.
Create a bidding war among several landlords for your business.
Protect you during lease negotiations so that you come away with terms that meet your present and potential future needs.
Serve as a buffer between you and the landlord.
Identify lease provisions that could cost or save you money during the lease term.
Handle the paperwork and other details of the lease negotiation.
Settle disputes that arise even after the lease is signed.
Spotlight the savings.
The goal of the tenant rep is to satisfy the business owner, and determine the perfect location for all companies seeking to do business anywhere they choose.
Tim McEvoy operates Exclusive Tenant rep, a Virginia-based agency specializing in tenant representation for businesses and companies seeking to move to or with the greater Norfolk and Richmond area. Exclusive Tenant Rep serves companies by counseling business owners on lease negotiations, commercial property appraisal and inspections, and relocation solutions concerning Virginia commercial real estate.
If you ever thought that it is impossible to have an “international†real estate website, think again. Athand24.com is attempting to do just that. Currently website has only 15 real estate listings, although the website was registered in July 2006.
One of the of the problems to attract advertisers to such a website is the complexity of real estate transaction. Here in the United States, regulation on selling and buying real estate are quiet complex and may differ significantly from one state to another, and often a real estate agent moving from one state to another may be required to take a real estate test or even go to school in order to be permitted to practice real estate in that respective state.
In the attempt to feature international real estate listings, much legal details should be considered. For example, in order to advertise real estate property in the United States the listings need to comply with Non-discrimination Act. While this is not news to a real estate agent, any one else outside the real estate professionals may not be familiar with this detail and potentially find legal problems I they do not comply.
Athand24.com offers their services to real estate agent as well as to private owners. In theory any one can register and list a property with Athand24.com, however those listings found for the United States may not stand some scrutiny in regards to local laws, which may very from state to state and range from compliance to “the truth in advertising†to “non-discrimination actâ€.
As more and more consumers begin their search for real estate-related information on the Internet, it is critical that real estate professionals are well educated in the use of technology to the benefit of both the consumer and the agent and/or broker.
Realizing the importance of technology training, the National Association of REALTORS® (NAR) now offers its members the e-PRO certification course — the only technology certification program offered by NAR. The program is designed to prepare real estate professionals to make the most of Internet technology and to identify, evaluate, and implement new Internet business models. The elite group of course graduates represents only one percent of all REALTORS in the country including Nathan Thomas of John L. Scott Real Estate.
“The real estate industry has undergone a fundamental change over the past five years,” Nathan Thomas said. “Today, more than 70% of all buyers and sellers begin their search online. As an e-PRO certified agent, I have knowledge and tools needed to provide my clients with the information they need and the customer service they demand. It’s both hi-tech and hi-touch.”
Searching for a property in Hawaii? Than you should consider take a closer look at Hawaii Life- a real estate search engine that maps properties in Hawaii MLS with the help of Google Maps. Any visitors can search for Hawaii Real Estate property, but there are benefits to register an account so you can save the properties you are interested in for the future review.
At the moment Hawaii Life offers your an opportunity to search for Kauai Real Estate and Big Island real estate. Hawaii Life is promising to also include Maui and Oahu real estate listings some time this months.
Hawaii Life provides a unique way for a potential buyer to find their home in Hawaii Real Estate Market. In the snapshot below you can see that after performing your search for the properties, hovering with the cursor over the property picture will match the location of the property on integrated Google map an vice versa, if you point your cursor to a property on the map it will match with the picture of the property on the right of your screen:
With just one click you can save the properties you are interested in for a later review or even if you need to find out more information about properties, send a request to Hawaii Life:
June 22, 2007
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