FHA vs Conforming Mortgage Loans in Columbus…Which Costs Less in the Long Run?

Written by: Joe Peffer

Do put some thought into your mortgage...You'll be glad you did later on

I have a feeling this is something that many buyers constantly wonder about but rarely verbalize.  Aside from short and long term costs of the loan, there is more to both than meets the eye.

Take, for instance, the possibility of a big promotion in another city only two years after you moved in to your new Columbus home. If you put down 10- 20% on your conforming loan, you’re in a better position to sell and move. Dan Green explains the basic long and short term costs from his Mortgage Reports blog….

FHA And Conforming Mortgages : Key Differences

People tend to assume that a 30-year fixed is a 30-year fixed is a 30-year fixed.  The market doesn’t work that way.  It’s like saying a car is a car is a car. There are traits that make each product unique.

Yes, both the FHA and Fannie/Freddie back a product called the “30-year fixed rate mortgage”, but beyond their identical, 30-year amortization schedules, the products are hardly similar.

As examples:

• FHA mandates mortgage insurance on all loans. Fannie and Freddie do not.
• FHA mortgage insurance lasts 60 months. Conforming mortgage insurance lasts until there’s 20% equity in the home.
• FHA mortgages can be assumed by a subsequent, qualified buyer. Conforming mortgages cannot.
• FHA-backed homes must be free of defects and “issues”. Fannie/Freddie homes may have small defects.
• Fannie/Freddie require loan-level pricing adjustments. The FHA does not.

And, lastly, the FHA requires a minimum downpayment of 3.5% on a purchase. Fannie and Freddie want to see 5 percent, at least; oftentimes, 10 percent.

Lots more great information on this post which is continued here….

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Canoe and Kayak registrations have doubled in Ohio since 2000-Is There Waterfront Living in Central Ohio?

Written by: Joe Peffer

For $179,000, this could be your view from a nearly 1000 sf 2 bedroom cabin in Hide-a-Way Hills on Lake Eagle Claw

Isn’t that fantstic?

In 2010, the State of Ohio registered 424,700 watercraft–an increase of over 5,000 over the 2009 year.  

As of today, there are 276 homes active in the Central Ohio MLS that are ‘Waterfront’ of one sort or another. 29 of those homes come in asking $1,000,000 or more but they range all the way down to a $56,000 1 bedroom vacation home on the banks on the Muskingum River, 90 minutes from Columbus just outside Stockport.

I’d love to help you find your waterfront property this Spring to enjoy this Summer.

Get out and Go Paddling!

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Franklin County Real Estate

Written by: Joe Peffer

Today, we’re playing with both numbers and the local Board of Realtors’ new statistics. It’s a game that could turn dangerous if you don’t read between the lines or follow the stats in your favorite neighborhood closely. For example, while you could certainly find a deal out there, don’t think you can expect to get your next home for 88% of the list price as suggested below.

Just today I had a couple who’d made an extremely strong offer on a foreclosure find out that they lost out in a highest and best situation that mingled at least five offers. The listing agent hinted the winning offer was at least 175%  of the list price. A similar home across the street had a similar situation transpire just two weeks ago. So, come on in, the markets great.

You may be surprised (I was) to hear that of the 18 counties that make up the Central Ohio MLS, Franklin County had only the Eighth Highest Median Sales Price. Delaware was first at $227,794…more than $110,000 over Franklin County but of course Franklin County had more sales, lots more sales—609 compared to Delaware’s 118.

Franklin-County-January <– Click here for all the pretty graphs.

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Columbus Area Real Estate. The House vs. The Neighborhood. Who do you root for?

Written by: Joe Peffer

What’s more important, the house or the community the house is in?

Sarah just closed on her home and she has some great advice for would-be home owners. The bottom line, it’s up to you. In a perfect world, you get both the perfect house and it is in the perfect neighborhood and it’s perfectly placed in that neighborhood.

The Real Estate Search isn’t a perfect arena though; sometimes something has to give.  That doesn’t mean you have to ’settle’ for less than what you want, it just means you may have to rearrange your expectations.

You’ll do fine, don’t worry.  If you’re looking for homes for sale in Bexley, Worthington, Grandview or Groveport, listen to Sarah, she just wrapped up her home search and she is wise.

Discussion: Join The Discussion!