Mesa AZ homes for sale - Mesa HUD homes
I have been coming across more and more wise buyers lately. They are very educated when it comes to the power of a great mortgage interest rate. Do you know what theÂ average mortgage rates have been over the last 30 years
Â vs where they are currently? How will theÂ new mortgage regulations of April 2011
Â impact loan officers, and will it force out loan officers and smaller lenders or brokers? If it does force them out or force them to close their doors how will this impact mortgage rates? If we know basic economics supply and demand theories we would assume less competition and equal or increase demand the rates would increase. How will inflation from ObamaÂ printing money impact mortgage rates too
? Now driving it home- who thinks our rates will stay at 4.375 long enough to be a slow buyer? How will it impact you if rates go to 6.5% vs 4.375%?
($100,000 x I)/12 = monthly interest payment
($100,000 x .04375)/12 = $364.58
(67307.08 x .065)/ 12 = $364.58
You would have to get the home basically 33% off of the current market value to stay up with the increase of the rate, so you were not impacted. Who knows right, prices could slide, but if they do not and rates go on the run then what? So if you are payment sensitive and want a great real estate bargain then you might want to choose a HUD home for a quick response.Â
HUD home listings come with the option to get 3% of the purchase price to be used toward the buyers closing costs. You also get a free home inspection report, a free termite inspect report, and a free home appraisal report. Further, HUD properties have a time period where only owner occupant purchase buyers can buy the home. This is why I would consider buying a government owned home for your next home purchase.Â
What Are HUD Homes?Many homeowners purchase homes with Federal Housing Administration (FHA) loans. These loans have mortgage insurance provided by the federal government. If the homeowners default on the loans, the FHA guarantees that it will buy back the properties from the lenders. When these properties go into foreclosures, they become the properties of the Department of Housing and Urban Development (HUD), the governing body of the FHA. HUD is not in the businessÂ of buying and selling properties, so the department's goal is to unload the homes quickly. The properties are listed online at a discount price and HUD tries to sell them to owner occupants. HUD homes can be single-property homes or multiple unit properties, up to four-unit properties. Priority for sale goes to owner occupants, but investors can purchase these homes if no owner occupants put in acceptable offers.
Do I simply make an offer to purchase a home?
HUD foreclosures are sold using a bidding process. There's an Offer Period, during which sealed bids are accepted from your agent. At the end of that period, all offers are opened. HUD will generally accept the highest bid, or the bid that brings them the highest net.
If the home remains unsold after the initial period, bids are opened as received.
If your bid is accepted, your agent will be notified within a day or two. You will be given a settlement date, usually 30-60 days from the date of your accepted contract.
HUD will pay real estate agencies a commission of up to 6% for the sale of the home. Be aware that to get paid, the selling agent must insert wording in the contract that verifies HUD will pay his or her commission.HUD does not finance their on homes, so you should seekÂ financial approvalÂ prior to making an offer on a HUD Home.
HUD does provide a free home inspect report, a free termite report. These are great reference points, but I would still invest into your own private inspections.HUD's included home appraisal can sometimes require either a spot check with you turning on theÂ utilitiesÂ for the appraisal company and or all the way up to do a full new inspect based on your mortgage companies rules and regulations.
John Hall & Associates
An Equal Housing Company