The Mortgage Man

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Archive for Perdido Key

Perdido Key Condo Deals – LaRiva

LaRiva is a rent restricted building with some of the finest ammenities on the Key.  Call about financing and get pre-approved before this one gets away.

Steve Russell

850-221-8334

www.SteveRussellOnline.com

Twitter Me This…

For months now I have heard the “buzz” about Twitter.com and its ability to micro blog whatever you are doing at any given time.  I of course didn’t see the point.  But,  since it is free, I went ahead and signed up for an account about 9 months ago, and proceeded to do absolutely nothing with it.

Now, after getting asked repeatedly about twitter, and after getting my first confirmed real estate lead from there, I have had my light bulb moment.  If someone is following me on twitter, they know that I am a mortgage banker.  And, they will also get to see everytime I update something on my profile such as a new blog post, or today’s mortgage rates, or what the neighbor’s cat is doing in my yard.

The concept of Twitter is so simple, that I truly didn’t get why you would even bother, until recently.  I am by no means a “twitter-holic”, but I an trying to more frequently update what is going on with me for those interested in me or mortgages or real estate or all of the above.

You can follow me on Twitter by clicking the Twitter icon on the right side of this screen.

For your daily mortgage rates, go to SteveRussellOnline.com, or call me at 850-221-8334.

Pensacola Real Estate Featured In USA Today

For those unfamiliar with the Pensacola area, it is a hidden gem nestled on the Emerald Coast in the Panhandle of Florida.  Half way between Mobile, AL and Destin, FL, Pensacola is a relatively quiet little town with some of the best real estate deals available in the state.

As featured in a recent USA Today article, this little slice of paradise that I call home has seen trouble from hurricanes and the economy, but remains strong in the face of adversity.  As we continue to locate a bottom in the housing market nationwide, the deals here are already jaw dropping, and gaining the attention of investors all over the country.

One project in particular that I have gotten many calls on lately is the Purple Parrot Condominium project on Perdido Key.  Perdido Key is about 15 miles southwest of downtown Pensacola.  Being an island, only connected to the mainland by bridges on either side, this tropical oasis makes you feel as though you are in the laid back lifestyle of a caribean island.

The Purple Parrot is unique in many ways, but what really turns heads is the price.  For less than $100,000, you can buy a 1 bedroom bungalow, walking distance from the beach, that is reminisant of Key West.  (For those familiar with Key West, you can not buy a walk in closet there for that price)

For information and pictures of units available, visit www.SteveOnTheKey.com to check out available listings.  Or, call me at 850-221-8334 for your mortgage related questions and to get pre-approved to purchase.

Pensacola Mortgage

Tax Savings Could Cost You Your Home

The expenses that you write off on your taxes could keep you from getting a mortgage.

The entrepreneurial spirit is one of the finer points of our society.  The fact that we live in a country with so many freedoms to carve your niche in the marketplace is a beautiful thing.  But that American dream of self employment can also cause you to loose another American dream, the dream of home ownership.

You may have heard the term “stated income” loans.  These are loan programs that were designed for self employed people that had difficult to document income, or they had significant write offs on their tax returns that prevented them from qualifying for a home.  With stated income loans, you were allowed to “state” your income without documenting or verifying where this income came from.  It was a simple solution for some people with good credit and good assets to qualify for a loan even if they could not prove their actual income stream.

With this loan program also came abuses of the system leading to desperate borrowers overstating their income to qualify for their dream home.  Or, unscrupulous loan officers that would do anything to get the deal done.  Regardless, many home owners bought homes that they could not afford, and you have seen the aftermath that was caused.

So, now that stated income loans have gone the way of the dinosour, self employed borrowers have to be more aware of their tax returns if they plan to buy a house.  Standard underwriting guidelines are that you take the last 2 years filed tax returns, use the Adjusted Gross Income (AGI) on the bottom right of the 1040 form, divide that by 24, and that is the number that will be used to qualify you for a loan.  Be aware that if you “made” $100k, but you wrote off $70k in expenses, your income is $30,000.  There are a few items that can be added back into your income such as depreciation since it is not an actual cash expense.

I am neither an accountant nor a lawyer, so I will not presume to give legal or accounting advice.  However, I am an expert in mortgage financing, and rest assured, an underwriter is not going to use your gross income for qualifying.

Example:

Say you own a landscape company with gross receipts of $120,000.  But, your cost of goods (gas, equipment, mileage, supplies) was $72,000.  This would mean that your adjusted gross income would be $48,000.  On a monthly basis, your income would average out to be $4000 per month.  You are generally allowed to have a debt ratio of 40% to 45% (depending on the loan program) for your total expenses.  In this example, 45% would be $1800.

If you have a car payment of $350/ month and other debt payments of $400/month (credit cards, student loans, child support, alimony, etc.), it would leave you with $1050 to use for mortgage financing.  Take away property taxes and home owners insurance in that payment, you are probably left with about $900 for the actual mortgage payment.  At 6% on a 30 year term, this means that you would qualify for a loan amount of $150,000.

This is a good example of exactly the calculations I use when pre-qualifying someone for a home loan.

As we near the end of the year, and tax season is coming up, this will be an important conversation to have with your accountant if you have any plans to buy a home in the next few years.  your decision to save a few thousand dollars on your tax bill could very well keep you from buying a home.

If you would like to discuss your personal situation, call me at 888-257-8383 or go to Pensacola Mortgage Solutions.

Thursday September 18, 2008

Today’s bond market and its affect on mortgage rates.

At present, the bond market is moving in a sideways channel between resistance and support.  The cash infusion by The Fed has had some positive affects on the stock market today which is creating pressure on bonds.  There is no clear up or down swing predicted to happen today in mortgage rates and mortgage bonds, but due to unexpected volitility in the markets that could happen at any time, it would be prudent to go ahead and lock your rate if you have a mortgage loan in process.

Enjoy your day, and try to think about something other than the stock market.

Island Real Estate – Ono Island Alabama

Island Real Estate – Ono Island Alabama

Ono Island Alabama

Ono Island Alabama

When most people think of Island Real Estate or Island Vacations, they don’t think of Alabama.  There is, however, a hidden gem on the gulf coast of Alabama called Ono Island.  This unique paradise is nestled between Perdido Key Florida on the south and main land Alabama on the north.  Even though it is less than 40 minutes from Pensacola, and less than an hour from Mobile, Alabama, you will feel like you have moved to a secluded caribean island when you are there.

With a contrast of older original beach homes, and newer super mansions, this island has an eclectic mix of arcitecture.  What many locals may not even know is that Ono Island is world renowed as one of the best fishing spots for speckled trout.  Hidden under the illuminated docks of the private residences around the island, the speckled trout makes for good eating, and a whole lot of fun to catch.

If you would like to learn more about how you can buy your slice of a private paradise, go to PerdidoKeyMortgage.com and find out what your options are today.

Perdido Key Condo Deals – Purple Parrot

Purple Parrot Village Resort in Perdido Key gives you the feeling you have just stepped onto a carribean island.  With its unique cottage style bungalos and huge lagoon style pool, it is hard to believe that you can get a piece of this paradise for little more than $100,000.

Lagoon style pool at Purple Parrot

With the rise in foreclosure rates, and a sluggish economy, vacation properties such as Purple Parrot have had challenges recently.  The good news is that because of this, a unique buyers opportunity has been created where you can own one of these island living gems for half of what they were selling for just 3 years ago.

Tropical cottage at Purple Parrot

You can find several of them listed as preforeclosure short sales at www.PreForeclosureFSBO.com.  If you are in the market for an investment property within walking distance to the beach, this is possibly the best deal available on the key right now.

For a local real estate professional specializing in beach properties on Perdido Key, go to SteveOnTheKey.com.