Mortgages and their chaos....

At Palmetto Dream Homes we help you with your mortgage

As a Realtor I feel that it's my responsibility to have a decent understanding of mortgages. Mortgages in real estate can be compared to the oil in our car.  It's what drives the market with it's options, rates, and overall need for it.  As you can assume most people are not paying cash for a home but a friend of mind recently sold a 6 million dollar home for cash. That's pretty impressive, eh? Since most of my readers probably don't have a few million, or even a few thousand, in cash (if you do and want to buy please call me today) you should know a bit about mortgages.  Disclaimer: I am NOT a mortgage professional and will always send you to one of my lenders I work with.  This information will be part my knowledge and part research (http://www.homebuyinginstitute.com/mortgagetypes.php) and will be pretty general in terms.  

Conventional:

• Conventional home loans are not insured or guaranteed by the federal government in any way. This distinguishes it from the three government-backed mortgage types explained below (FHA, VA and USDA).  I belive a conventional requires at least 5% down (although this changes frequently so check with your lender) but anything less than 20% down will require PMI.  When you make a down payment of less than 20%, the lender requires private mortgage insurance, or PMI. The policy protects the lender from losing money if you end up in foreclosure. PMI also is required if you refinance the mortgage with less than 20% equity.

Combining: It's important to note that borrowers can combine the types of mortgage types explained above. For example, you might choose an FHA loan with a fixed interest rate, or a conventional home loan with an adjustable rate (ARM).

Government back loans:

• FHA Loan: The Federal Housing Administration (FHA) mortgage insurance program is managed by the Department of Housing and Urban Development (HUD), which is a department of the federal government. FHA loans are available to all types of borrowers, not just first-time buyers. The government insures the lender against losses that might result from borrower default. Advantage: This program allows you to make a down payment as low as 3.5% of the purchase price. Disadvantage: You'll have to pay for mortgage insurance, which will increase the size of your monthly payments.
• VA Loan: The U.S. Department of Veterans Affairs (VA) offers a loan program to military service members and their families. Similar to the FHA program, these types of mortgages are guaranteed by the federal government. This means the VA will reimburse the lender for any losses that may result from borrower default. The primary advantage of this program (and it's a big one) is that borrowers can receive 100% financing for the purchase of a home. That means no down payment whatsoever.
• USDA Loan: The United States Department of Agriculture (USDA) offers a loan program for rural borrowers who meet certain income requirements. The program is managed by the Rural Housing Service (RHS), which is part of the Department of Agriculture. This type of mortgage loan is offered to "rural residents who have a steady, low or modest income, and yet are unable to obtain adequate housing through conventional financing." Income must be no higher than 115% of the adjusted area median income [AMI]. The AMI varies by county.

Fixed vs Adjustable:

Fixed-rate mortgage loans have the same interest rate for the entire repayment term. Because of this, the size of your monthly payment will stay the same, month after month, and year after year. It will never change. This is true even for long-term financing options, such as the 30-year fixed-rate loan. It has the same interest rate, and the same monthly payment, for the entire term.

Adjustable-rate mortgage loans (ARMs) have an interest rate that will change or "adjust" from time to time. Typically, the rate on an ARM will change every year after an initial period of remaining fixed. It is therefore referred to as a "hybrid" product. A hybrid ARM loan is one that starts off with a fixed or unchanging interest rate, before switching over to an adjustable rate. For instance, the 5/1 ARM Loan carries a fixed rate of interest for the first five years, after which it begins to adjust every one year, or annually. That's what the 5 and the 1 signify in the name.

Questions? Need a lender?  Call us today at 843.696.8627 or go to www.Palmettodreamhomes.com. 

We do Real Estate Differently.

Jason

Do Realtors Really Work?

 As I was walking through the grocery aisle the other day a familiar face rounded the corner and I said Hi.  This woman used to work in the schools with me and was a fellow school counselor in one of the neighboring schools so I asked how her year had gone and how her summer was. As we were talking in the aisle she casually says to me, "it must be nice to not work."

This is how I felt

The conversation went like this:
Her: must be nice to not work
Me: I'm sorry, what do you mean?
Her: Well, you don't work anymore, right?
Me: You know I do real estate full time, right?
Her: Well Yes, but you don't really work.
Me: Ohhhh, you must mean that I only work 7 days/week, answer my phones 7 days/week most after hours, schedule and host open houses, write and negotiate contracts for my clients, show homes to my buyers, give financial advice regarding buying and selling, work with lenders and attorneys, walk clients through the mortgage process, do final walk-throughs, problem solve all the time, do social media, write a blog, review the market on a daily basis, work with professional photographers, be on call 24/7, schedule home inspections and other necessary inspections, go to conferences to make sure I am the best I can be, take continuing education classes, work with new agents, market and advertise my business and I'm sure a few hundred other things.
Her: Have a good day
Me: You too

This got me thinking - I understand the public is relatively uneducated in the world of real estate which is why I do what I do - to ensure you get a good deal and close on your home. Is that what people think of real estate agents?  Do you think we don't do anything and then get overpaid. Guess What - The real world is not HGTV or Bravo channel.  I had a conversation with a young man one time who wanted me to drop my commission. I asked him if he walked into work one day and his boss said to him, "Good morning - we think you make too much money and we're going to drop your salary just because" how would that make him feel. He ended up going with another agent to list that property (someone who was willing to get less which probably meant less service) and lo and behold that property did not sell. We don't walk into your places of employment and tell you you get paid too much and that I can do it better.  If people can sell houses better than agents why do over 90% of For Sale By Owners list with an agent?  We are not perfect and most of us in this business to help you.

Do you realize at the end of the day we get paid a LOT less than you think.  Just because you may see a large number on the closing documents does not mean we get paid that.  I do not charge you for any advertising or marketing fees, open house supplies, Facebook ads, copies and brochures, signs, etc.  That all comes out of the commission and I also then have to pay my brokerage a substantial percentage of my commission.  By the end I may be making 1.5% commission on the sale price. Do the math - on a $200,000 I will probably walk away with $3k.  That amount comes after 30-60 days of me working on your behalf. The average agent does less than 3 deals/year in the US.  I'm grateful I am way above average!

Palmetto dream homes does a lot for you

Contact us today to see how we Do Real Estate Differently.

We represent buyer's and sellers in and around SC.  We also love what we do so let us help you buy or sell.

-Jason Gregg, Realtor

843.696.8627

www.Palmettodreamhomes.com

www.Holycityluxuryhomes.com

What's up in August - besides the Temperature

The dog days of August are here and that means Tax Free Weekend on Aug 4-6. Charleston is getting national attention for the total Solar Eclipse on Aug 21.  Solar Eclipse events include Eclipse Baseball Game at Joe Riley Park, an all day program at the Children’s Museum, Citadel Mall is an official NASA viewing location, Total Eclipse of the Art at the Gibbes Museum, a view party at MUSC Health Stadium on Daniel Island, and an eclipse party at the Charleston Harbor Resort and Marina. August also means that schools will be starting back and there are some events with free school supplies.  

Here is your August calendar of events:

2: Broken Flowers Film Screening, Music Hall

4-6: SC Tax Free Weekend

4: Reggae Concert Series, James Island County Park

9-13: Cirque du Soleil OVO, N Chas Coliseum

9: Mary Chapin Carpenter, Music Hall

10: David Feherty, Music Hall

11-12: Hootie and the Blowfish Homegrown Tour, Volvo Car Stadium

12: Berkeley Goes Back to School Festival, 418 Main St Moncks Corner

12: Shaggin’ on the Cooper, Mt Pleasant Pier

13: City of Charleston First Day Festival, Liberty Square

13: Sprint Triathlon, James Island County Park

18: Moonlight Mixer, Folly Pier

18: Summerville movie in the park -Rogue 1

20: Life Aquatic Film Screening, Music Hall

20: Summerville CommUNITY Back to School Bash 2-6:00

21: Solar Eclipse - GET YOUR GLASSES ON

22: Tony Bennett, Gaillard

26: 18th Annual Race for the ARK, Summerville

30: The Second City Cure for the Common Comedy, Music Hall

Sept 1-3: Low Country Jazz Festival, N Chas PAC

Travel and Leisure Magazine named Charleston as the best city in the US for the fifth consecutive year and they also named us the 2nd best city in the World.  Southern Living magazine named Charleston the #1 Best City in the South. Food and Wine magazine included Charleston in their list of the Top 10 Most Exciting Food Cities in the World.

In business news Volvo and Mercedes plants moving in have begun to have a ripple effect here. IFA, a German Automotive supplier, plans to expand by adding a new 234,000 square foot plant in Berkeley County(+120 jobs.) The company presently makes about 2 million drive shafts a year at its Ladson facility. Knapheide is building a 75,000 square foot facility (+63 jobs) in Charleston County to provide and install van interiors and bodies for the Mercedes plant located down the road.  T-Mobile will renovate the abandoned Rivers Ave Kmart store in N Chas to create the largest call center for the carrier adding 400 new jobs.

Of course, with all this going on, the real estate market continues to move forward nicely.  Year to date, transactions are up 7.7% over the same time period from 2016.  2017 will likely be the busiest year in Charleston history.  We may sell over 18k units.  Median sales price is up a modest and sustainable 3.9%.  Median sales price is at an all time high of $253k.   However, according to my regression analysis of prices back to 1991, we are still undervalued.  We should have a median price of about $270k right now. Mt Pleasant continues to be a very attractive area with median prices in the $225/sqft range.  However, Park Circle in N Charleston and Hanahan and Daniel Island have become hot spots for Boeing employees.  And now Summerville and Goose Creek are seeing a boom with the coming of Volvo.

Homes are still selling quickly and I'd love to sell yours. Call us today to find out how we DO REAL ESTATE DIFFERENTLY!

Jason

843.696.8627

Palmettodreamhomes.com

July Activities and Real Estate Update

Happy 4th of July from PDH and Jason Gregg

This events calendar and update is not all-inclusive but it'll give you a great start to this month.  It’s hard to imagine, but half the year is over and July is upon us.  July and August are our hottest months and a great time to enjoy the beach and air conditioning!  There will of course be firework displays all over town on July 4 and you can find these at http://counton2.com/2017/06/30/4th-of-july-events-around-the-lowcountry/. There is some good music coming to town this month as well.  Of course, the boys of summer are at it again at Joe Riley Stadium.  It’s anyone’s guess what Riverdogs owner Mike Veeck might come up with next.  Especially if his partner in crime, Bill Murray, is in town.

Here is your July calendar of events:

1: 5th Annual History Fair, Magnolia Plantation

2: Mountain Music Festival, Fresh Fields Kiawah

4: Fireworks displays from Yorktown, N Chas Riverfront Park, Folly Beach, etc

4: Uncle Sam Jam Party, Mt Pleasant Waterfront Park

4: Reading of Dec of Independence at Old Exchange at 10:30am followed by March to St Phillips Church by the Washington Light Infantry, followed by Charleston Wind Symphony 4th of July Spectacular at St Phillips Church

6-8: MegaDock Billfishing Tournament Governor’s Cup, City Marina

8: Gromfest Surf Contest, Folly Beach

12: Cody Jinks, Music Hall

13: Steve Earle, Music Hall

14: Surf in the City, Music Hall

15,16: Longboard Surfing Invitational, Folly Beach

15: Shaggin’ on the Cooper, Mt Pleasant Pier

21: Reggae Nights, James Island County Park

22: Hank Williams Jr, Volvo Car Stadium

23: Jason Isbell, N Chas PAC

26: Lost in Translation, Music Hall

29: Palmetto Paddle, Brittlebank Park

30: Patty Griffin and Lee Ann Womack, Music Hall

The real estate market here is booming and 2017 will likely be the busiest year we’ve ever had.  2016 was the 2nd busiest year ever by only a few transactions, and 2017 year to date is up 8.9% over 2016.  Median sales price is also up 4.4% to an all time high of $250k.  The economy is roaring along with only about 3.1% unemployment.  Boeing is doing quite well here and that has led to Volvo building a new plant west of Goose Creek.  Of course, BMW in Greenville has meant a lot to our port here in Charleston.  The Chas Business Journal recently described the BMW/Port experience. Riding over the Ravenel Bridge the rows of shiny new autos are amazing. 700-1000 cars are unloaded each day from trains to the parking area, freeing the train to return to Greer to re-up. 5 BMW cars are loaded per hour onto a waiting cargo ship by 16 drivers each shift, six days a week. When Volvo’s Berkeley plant is up and running, they expect to ship out 30,000 vehicles of the 65,000 manufactured in 2018 through the port.  Charleston has also become a favorite for tech startups.  We have incubators all over town where these young people are working on the next hot technology.  Charleston is now known internationally as Silicon Harbor!  Getting voted #1 city in the World about 4 times in a row drew a lot of attention our way and we are no longer a hidden gem.  The world has found us and they are coming.

I'm here to help you with any of your real estate needs. Please call us at 843.696.8627 or email at Jason.Gregg@ERA.com.  My site is www.Palmettodreamhomes.com and you can easily search for homes there anytime. 

Sincerely,
Jason and the Palmetto Team

What does "the market is hot" really mean?

Good Morning from Myrtle Beach.  I'm sitting on a balcony admiring the ocean and hearing the waves and what better way to soak in this beauty than by reviewing real estate stats.  Yup - exciting stuff.  You know in school I really hated stats and said I'll never use this crap.  Yet, here I am writing about stats and they are an integral part of my business.  Honestly, if you ever talk to a real estate agent that cannot give you a few up to date, relevant statistics it's time to move on. Agents that don't know, or understand, the market honestly are dangerous and do you want to put your biggest investment in the hands of someone that is dangerous? Me neither. Check out our local stats from last week and let me know what you think.  Also, I just listed a house yesterday in Sangaree and we had at least a dozen showings in the first day. If you're home is for sale and you have not had at least 5 showings in the first day then reconsider your marketing efforts. Of course, just call me and I'm here to help you sell and buy.

www.Palmettodreamhomes.com

Jason Gregg, Realtor

ERA Wilder Realty

Jason.Gregg@era.com

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Real Estate during the week of 5/5/17-5/11/17

• 377 residential properties under contract past wk. Excellent week.
• 301 single family homes under contract past wk. Median LIST price $263k, $140/sqft.  
• Only 2% are short sales
• 47 island single family homes under contract past wk.
• 17 James Island single family homes under contract past week
• 16 Johns Island single family homes under contract past week
• 43 West Ashley single family homes under contract past week
• 25 North Chas single family homes under contract past wk LISTED from $29k-$283k.
• 50 Mt Pleasant single family homes under contract past wk LISTED from $244k-$1.9M. 5 Park West. Median $480k, $207/sqft.
• 5 Peninsula Charleston single family homes under contract past wk LISTED from $255k-$575k.(Low this week)
• 65 Summerville/Ladson single family homes under contract past wk LISTED from $84k-$550k. 6 Wescott, 6 Ashborough. Median $220k, $122/sqft.
• 63 Hanahan/Gs Creek/Moncks Cnr single family homes under contract past week LISTED from $75k-$389k. 6 Crowfield.  Median $190k,$111/sqft.
• 65 condo/townhomes under contract past wk. 4 LISTED under $100k. 38 from $100k-$199k. 13 from $200k-$299k. 7 from $300k-$425k. 3 from $500k-$1.5M. 15 Mt P.