Archive for the ‘Uncategorized’ Category

Lower Monthly Mortgage Payments by “Recasting”

Monday, January 10th, 2011

There is another way to reduce your mortgage payments without having to refinance and face hefty closing cost fees.
 “Recasting” or “re-amortizing” a loan is a little known unpublicized way to reduce your monthly payments. When recasting, the borrower pays off a lump sum of the loan’s principal  thus reseting the monthly payments at the loan’s original interest rate and terms.

Here’s an example: $230,449 is left on a 30-year fixed rate loan for a $300,000 mortgage taken out at 7.93 percent in 1995. The borrower pays $20,000 toward the principal and asks the lender to reamortize their payments over the remaining 15 years of the loan. The monthly payment then drops by $52, from $2,187 to $2,135 per month. ($100,000 toward the lump sum would save $730 a month.)

Since you are not getting a new loan, you will not have to pay closing costs or submit to another credit check. (Note: “Recasting” is often used in the mortgage industry to refer to interest rate resets on adjustable-rate mortgages. In this case, the interest rate and loan term remain the same. )

If you just make extra payments toward the loan’s principal but do not ask the bank to recast the loan it will keep monthly payments the same and just shorten the overall time it takes to pay off the loan. Recasting, on the other hand, reduces the principal and lowers monthly payments and interest over the life of the loan.

If you have access to a large sum of cash, this might be a good option for you.

Christmas in the North Georgia Mountains

Wednesday, December 22nd, 2010

This time of year when we have a lot of parties and gatherings is a great time to reflect on the reasons we live in the North Georgia mountain communities of Big Canoe and Bent Tree. Both are beautiful with lakes, waterfalls and killer mountain views but the main selling point of both communities is the people who live here. In Big Canoe and Bent Tree, there is a sense of community that one rarely finds in this fast paced world. It is a small town atmosphere with neighbors helping neighbors. I am always touched this time of year when the spirit of giving extends to the less fortunate in the community. This is a great place to live and I am privledged to be a part of it. Merry Christmas and a Joyeous New Year to all.

Existing Home Sales are Up in November

Wednesday, December 22nd, 2010

NAR: Existing-Home Sales Rise 5.6%
Existing-home sales got back on an upward path in November, resuming a growth trend since bottoming in July, according to the National Association of REALTORS®.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, rose 5.6 percent to a seasonally adjusted annual rate of 4.68 million in November from 4.43 million in October, but are 27.9 percent below the cyclical peak of 6.49 million in November 2009, which was the initial deadline for the first-time buyer tax credit.

Lawrence Yun, NAR chief economist, is hopeful for 2011. “Continuing gains in home sales are encouraging, and the positive impact of steady job creation will more than trump some negative impact from a modest rise in mortgage interest rates, which remain historically favorable,” he said.

Yun added that home buyers are responding to improved affordability conditions. “The relationship recently between mortgage interest rates, home prices and family income has been the most favorable on record for buying a home since we started measuring in 1970,” he said. “Therefore, the market is recovering, and we should trend up to a healthy, sustainable level in 2011.”

The national median existing-home price for all housing types was $170,600 in November, up 0.4 percent from November 2009. Distressed homes have been a fairly stable market share, accounting for 33 percent of sales in November; they were 34 percent in October and 33 percent in November 2009.

Foreclosures, which accounted for two-thirds of the distressed sales share, sold at a median discount of 15 percent in November, while short sales were discounted 10 percent in comparison with traditional home sales.

Inventory Drops
Total housing inventory at the end of November fell 4.0 percent to 3.71 million existing homes available for sale, which represents a 9.5-month supply at the current sales pace, down from a 10.5-month supply in October.

NAR President Ron Phipps said good buying opportunities will continue. “Traditionally there are far fewer buyers competing for properties at this time of the year, so serious buyers have a lot of opportunities during the winter months,” he said. “Buyers will enjoy favorable affordability conditions into the new year, although mortgage rates are expected to gradually rise as 2011 progresses.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.30 percent in November from a record low 4.23 percent in October; the rate was 4.88 percent in November 2009.

“In the short term, mortgage interest rates should hover just above recent record lows, while home prices have generally stabilized following declines from 2007 through 2009,” Yun said. “Although mortgage interest rates have ticked up in recent weeks, overall conditions remain extremely favorable for buyers who can obtain credit.”

This is good news for sellers and should serve notice to buyers that the biggest real estate sale in history will not last forever. Contact me for information about mountain property in Big Canoe and Bent Tree.

Mortgage Rates Are Going Up

Thursday, December 16th, 2010

Mortgage rates rose for a fourth-straight week to reach a six-month high as yields on government bonds continue to rise. The average interest on a 30-year fixed loan hit 4.61 percent, up from 4.46 percent a week ago, Freddie Mac reported.

Also, 15-year fixed loans averaged 3.96 percent, up from 3.81 percent last week; and rates for variable adjustable-rate mortgages floated higher as well.

Most experts expect the rates to continue the rise so now is the time to buy before rates go higher. Even with the rate increase, mortgage rates are still at historic lows.

As winter arrives we begin the slowest time for sales of mountain property so this is another advantage for a buyer looking for a home in Big Canoe in the north Georgia mountains.

Big Canoe weather conditions

Thursday, December 16th, 2010

The following is a report from the Big Canoe POA about weather conditions in Big Canoe. The article showcases how the staff and community pitch in when the4 need arises. Kudos to the staff members who braved the icy mountain roads to make their way to Big Canoe.

Roads Update: As of 11:15 a.m. Thursday, Dec. 16, the gates and roads of Big Canoe were still closed according to Roger Klask, general manager. No time has been set to open Big Canoe’s roads.

Wednesday evening through Thursday morning residents were parking in the Wildcat parking lot and being transported to the Sconti Clubhouse for housing. Bill Bates, director of public safety, said there were 84 stranded residents and seven clubhouse staff members overnight at the clubhouse. They were served dinner Wednesday, breakfast and lunch on Thursday and told they would be allowed to leave just as soon as the roads become drivable for them.

Klask said, “Above 2,000 feet driving is prohibitive and lower elevations are still iffy.”

Additional clubhouse staff, including Chef Tuleo, and additional public safety and road maintenance personnel were able to make it to Big Canoe and aid in caring for those stuck at the clubhouse.

One woman on oxygen with back problems rested on the floor all night. Toby Jones, supervisor of roads and trails, was able to transport her safely to her home on Petit Ridge Thursday morning by using his four wheel drive and chains.

Klask said he had heard nothing but good comments on both the Sconti staff and public safety and road crews as they worked to take care of stranded residents.

The story continues…
Freezing rain and black ice early Wednesday evening began in Cherokee County and brought their headaches, crushed steel and melded cars incidents to Steve Tate Highway, outside Big Canoe’s main gate. No injuries were reported in the multicar demolition style derby, according to Harold Spence with Big Canoe Public Safety.

Earlier inside the gates while people were trying to make their way home from work and Christmas shopping, Becca Weck, event planner at the Sconti Clubhouse, was trying to talk Tom Gambeski into postponing his party of 30 people for 5:30 p.m. or at the very least move the hour up because of the incoming freezing rain. According to Weck the homeowner refused.

The guests arrived and shortly after were told by public safety shift supervisor Todd Lanning to leave and get home while they could. At first, Gambeski and guests refused the road warning but eventually left the club, according to public safety personnel. As a result eight club employees had to spend the night at the clubhouse as roads in the northern counties worsened hourly and hundreds of wrecks clogged highways and thoroughfares.

Sleep over at the Sconti clubhouse

Another wintry scene from ’09. (Photo by Bob Crouch)

However, the staff was not to be alone for long. At 7 p.m., as cars slipped off the roads in Big Canoe trying to reach home, Lanning ordered all the gates closed to incoming traffic.

Residents were directed to the Wildcat parking lot where they sat with motors running to keep warm and waited their fate. Becky Mosher, an eight-year employee on the gate staff, said there must be at least 20 cars in the parking lot. All through the night and early morning hours more cars arrived and were taken to the club house.

Also at 7 p.m. Pickens County sent out a recorded message from County Commissioner Rob Jones for people to stay off the roads. The calls were received by Dawson County residents in Big Canoe as well.

“I’ve never seen anything like it. Some people are waiting in their cars; some are here in the North Gate House with me and I understand public safety is going to transport all of them to the clubhouse to join the others there,” she said.

There was speculation some of these car occupants off in ditches could very well be returned to the club they had resisted leaving earlier. Because of the dangerous roads, no one was being taken home but gathered at the clubhouse for later, safer transport home.

One spreader truck pressed into action
David Fitts from the maintenance department made it on property to crank up a spreader truck and try to provide a path for public safety to cars off the roads in Big Canoe. A call went out at 7:15 p.m. for all public safety and maintenance personnel who could get to Big Canoe to do so. Only a few were able to navigate their way from home to help employees already slammed with calls from residents.

One blue van off the road near Quail Cove and Woodland Trace was so far off the road public safety personnel could not reach the car without putting themselves in danger. Harold Spence, public safety officer, drove a blazer patrol car with chains to Dawson Fire Station #6 on Hubbard Road and picked up Dawson personnel, rope and extrication equipment to help get the occupants out. One man was taken to Big Canoe’s Village Station #3 temporarily with what is believed to be a broken elbow.

In all of this icy mess, wrecker truck owners were seeing their Christmas pockets lined with gold, insurance adjusters a nightmare of claims, rental car companies were prepping their wares for the unfortunate and car dealers were tying bigger red bows for those needing new vehicles just in time for Christmas. And winter doesn’t officially arrive until December 21.

Earlier in the week Sanderlin Mountain reported two inches of snow fall and dangerous roadways all over Big Canoe as frigid temperatures below the teens gripped the upper elevations. Gates were closed Monday, December 13, to visitors and contractors but reopened once maintenance road people had scraped and spread their sand and gravel mixture about the property. The postal trucks were escorted to Big Canoe postal facility Monday by public safety. However, UPS and FEDEX chose not to attempt deliveries Monday.

Staging Your Home for the Holidays

Tuesday, December 7th, 2010

Many people question the wisdom of keeping their home on the market over the holidays but there are some advantages to having your home on the market at this time of year. Although there will probably be a larger number of buyers after the first of the year, the ones who are out this time of year tend to be motivated to buy. In Big Canoe, we find that many buyers who are extremely busy with work at other times of the year, have some down time to look for a house over the holidays. We also get buyers who are retiring at the end of the year or need to buy a house by the end of the year for tax reasons. Whatever the reason, the holidays in Big Canoe can bring home sales.

If your home is on the market, keep your holiday decorating to a minimum. If your great room is already small, crowding the room with a massive tree , and piles of gifts will not help sell your home.

If you DO decide to decorate, rethink it as staging with some holiday chee. As with any staging you should depersonalize and declutter. Keep your holiday decor secular and ethnically neutral, if possible. Trees, garlands, lights and bulbs are fne and are neutral enough that you do not risk offending a prospective buyer. A minimally decorated home can evoke a feeling of warmth that might just be what the buyer wants.

One of my clients related a story of a previous home sale. His home had been on the market forever when a real estate agent called and wanted to show it on short notice. The seller appologized for the condition of the house as they had company for the holidays. The prospective buyers saw the house with sleepiong bags, gifts and children’s toys everywhere and it made them think about holidays with their family. Long story short, they bought the house because it felt like home to them. Happy Holidays!!

AOL’s list of Top 10 Cities for Working Remotely

Monday, December 6th, 2010

AOL’s Daily Finance named what it considers the top-10 best cities for working remotely.

The list reflects cities with more than 1 million people that offer educational resources, an abundance of public libraries, resources that encourage good health, low crime, and – in most cases – modest cost of living. Here are the winners:

1. Austin
2. Cincinnati
3. Atlanta
4. St. Louis
5. Cleveland
6. Pittsburgh
7. Charlotte, N.C.
8. Kansas City, Miss.
9. Nashville, Tenn.
10. Milwaukee, Wis.

Notice that Atlanta is number 3 on the list. The funny thing is that many former Atlantans now live and work “remotely” in Big Canoe. Most only have to make the trip into an office a few times a month but many value the mountain lifestyle in Big Canoe so much that they do a daily commute to Atlanta or one of the burbs. While there are many Big Canoe part time residents who have second homes in Big Canoe, some have their primary residence in Big Canoe and keep a pied a terre in Atlanta to use during the work week. There are many options out there to enable one to live the mountain dream in Big Canoe. There are homes for all needs from small cabins to executive homes.

Amicalola Hiking Trail for Mobility Challenged Hikers Near Big Canoe

Friday, December 3rd, 2010

Many hiking trails in the North Georgia area are rated for hikers in the low-moderate skill level up to strenuous but a few are in the easy category. The easy trails are known as “soft trails” because they are built on the forest floor with a path a few feet wide containing as few obstructions as possible. For the average ability hiker, these trails are perfect for getting out into nature but mobility-challenged hikers and families with small children can find few trails in county or state parks that they can use as trails are seldom built especially for their use.

The Amicalola Access Site Handicap Trail off of Rt. 53 between the Foothills Shopping Center and Dawsonville was designed and built to accommodate the mobility-challenged hiker. This wooden platform trail was designed to American Disability Act (ACT) Standards with a hard surface, a bench every 200 feet and no slope that exceeds 8.33 degrees for more than 30 feet. The trail begins at the handicap parking lot in the Department of Natural Resources (DNR) Amicalola Access Site and follows the scenic Amicalola River for one-half mile to the End of the World Rapids. An observation platform allows the hikers to watch the canoes and kayaks run the Class Three rapids. When the river level is down, you can climb out on the rocks and watch the river flow by.

This $100,000 trail was supported by a federal grant and private local funding. The Mountain Stewards were instrumental in getting the park built. It is just another example of what can be accomplished when you have a dedicated group trying to preserve our pristine mountain area for the use of others. Many Big Canoe home owners who are active in this group also volunteer to map and maintain the 30 miles of hiking trails in Big Canoe.

Support “Prevent Child Abuse Pickens County”

Thursday, December 2nd, 2010
Doug Hosmer, Harry Norman-Big Canoe Broker and Bandit

Toys for Pickens Prevent Child Abuse

Doug Hosmer, Harry Norman-Big Canoe broker is  pictured with a reluctant Santa/Bandit with toys collected by the Pickens County Board of Realtors for the Prevent Child Abuse Pickens County Christmas toy drive.  Toys can be accepted until Dec 5 at the Harry Norman office located in the Foothills Shopping Center next to IGA.  Many thanks go out to the residents of Big Canoe and the surounding area for their generosity this holiday season.

National Association of Realtors Homes Sales Stats

Tuesday, November 30th, 2010

The National Association of Realtors has posted its latest stats on sales and sales prices of existing homes in the U.S. Home sales in the South are down from last year as are home prices. This may be caused by the fact that Georgia is one of the top states for home foreclosures. Georgia is a non judicial foreclosure state which means the foreclosure process is quick and easy compared to states where the process must go through the courts so lenders were anxious to lend in Georgia during the real estate boom times. We are now paying the price for the easy access to mortgage loans. The following is an excerpt from the NAR home sale report regarding sales in the South.

“In the South, the median existing single-family home price slipped 1.9% to $157,000 in the third quarter from the same period in 2009. Existing-home sales in the region fell 21.8% in the third quarter to an annual rate of 1.64 million and are 16.4% below the third quarter of last year. There were 1.43 million sales year-to-date in the South, in contrast with 1.39 million last year.”

Keep in mind, these stats are for the entire southern region and does not focus on Big Canoe where foreclosure numbers are significantly less than other area or mountain real estate in general but it does give us an overall view of what is happening in our area.
The report reiterates that this is still a great time to buy a home.