Jim Onesti & The McCann Team Bring You ANOTHER Investor Success Story!

1
Just last year we found our developer clients a phenomenal and rarely offered Northern Liberties buy! It consisted of a great piece of land located at 973-75 N 5th and 1004-12 N Orkney Streets.

Not only did we help them find and purchase the site but we also successfully guided them through the zoning and permit process. In addition to our vast development knowledge we also assisted in everything from designing to branding and marketing these homes.

2While in the process of building these seven brand new, astounding new construction homes, we were able to pre-sell six of them- months before completion!!! Our client paid just around $100k per lot and sold them for a whopping $520k to $620k each!

We love working with investors and developers and there is nothing that we don’t know about this business. This is just one of the many amazing success stories that we are able to tell!

If you would like more information about our marketing plan, our vast knowledge and experience or our proven marketing plan and track record contact me today!

3We always have lots and fixer uppers for sale in and around Center City and the surrounding areas. Many of our lots come with zoning permits and approvals.

We would love the opportunity to share your success story so contact me today!

Jim Onesti, The McCann Team Berkshire Hathaway HomeServices
215.440.2052 – jonesti@mccannteam.com

Interest Rates still at historically low levels!!!!!!!!!!!! But for how much longer?


photoAnother week of strong economic data would normally push mortgage rates a little higher, however, rates recovered some ground instead and ended the week slightly lower. The big report this week was a very strong Retail Sales report. This report is always watched very closely as a major economic indicator due to Retail Sales accounting for about 70% of 
all economic activity in the US. This kind of strong economic growth should support continued improvement in the housing market.
Regarding some day-to-day stuff…it is normal this time of year to see pending closing dates on agreements of sale going into the summer. Often the pending close date is outside the free 60 day rate-lock period Trident honors. (which is nice considering most banks/lenders/brokers will only lock for 30 days for free) In these extended closing date cases we can lock the rate for longer than the standard 60 days, but there are costs associated with this option. Typically the cost is about .5% of the loan amount for every extra 30 days needed in the rate-lock period. While the buyer will always have this option to pay to lock-in we’ll also track the rates closely for your clients if they choose not to lock-in and patiently wait until they’re within the 60 day free rate lock period.cropped-2.jpg

Pro’s and Cons of Refinancing… www.PhillyRealEstateInvestorDeals.com

2Up in the air about refinancing your mortgage?

That’s okay. Refinancing, which is essentially the process of paying off your existing mortgage with a new one, isn’t the right option for everyone. And for this reason, it’s important to weigh out the pros and cons.

By doing so, you can determine if you’ll actually benefit from refinancing.

For example, you could be lowering your interest rate by 25 percent, but if that comes with thousands of dollars in closing costs, it could take a long time to break even, says Shashank Shekhar, a loan originator with Arcus Lending in San Jose, California.

Not an easy decision is it? To help, we’ve hashed out the pluses and minuses of refinancing to see if it makes sense for you and your financial situation.

[Think refinancing is right for you? Click to compare rates from multiple lenders now.]

Keep reading to learn more…

Pro #1: You Could Score a Lower Interest Rate

This is perhaps the biggest pro of refinancing your mortgage: a lower interest rate.

Of course, you’ll need to first qualify for the lower rate, but if you do – you could be saving a lot of money. In fact, even an interest rate that’s a half percent less could garner a good chunk of savings.

Just consider this example from the Federal Reserve, which compares the monthly payments on a 30-year fixed-rate loan of $200,000 at 5.5 and 6 percent interest.

Monthly payment @ 6 percent: $1,199
Monthly payment @ 5.5 percent: $1,136
The difference each month is: $63
Over 10 years, you will save: $7,560

Now, imagine the savings if you could lower your interest rate by 1 or 2 percent…

[Want to lower your interest rate? Click to compare rates from multiple lenders now.]

Con #1: Refinancing fees

Getting a lower interest rate sounds great, right? Of course it does. But like most things in life, there are costs that come with refinancing  – and these costs could really add up.

“It is not unusual to pay 3 percent to 6 percent of your outstanding principal in refinancing fees,” according to the Federal Reserve, which adds that fees could include an application fee, loan origination fee, an appraisal fee, and more. “These expenses are in addition to any prepayment penalties or other costs for paying off any mortgages you might have.”

A prepayment penalty, in case you’re wondering “is a fee that lenders might charge if you pay off your mortgage loan early, including for refinancing,” according to the Federal Reserve.

So, before you refinance, you’ll want to do some research and make sure that the refinancing savings will outweigh any and all fees.

Pro #2: You Can Shorten the Length of Your Mortgage

What exactly is the benefit of refinancing to a shorter term mortgage, you ask?

For starters, shorter-term mortgages – like a 15-year mortgage versus a 30-year mortgage – generally has lower interest rates, according to the Federal Reserve.

What’s more, the shorter your mortgage term, the sooner you’ll be out of debt and the less interest you’ll have to pay in the long run.

For example, the Federal Reserve says to compare the total interest costs for a fixed-rate loan of $200,000 at 6 percent for 30 years with a fixed-rate loan at 5.5 percent for 15 years.

Monthly payment Total interest
30-year loan @ 6 percent $1,199 $231,640
15-year loan @ 5 percent $1,634 $94,120

While the total interest savings are indeed significant, “The trade-off is that your monthly payments usually are higher because you are paying more of the principal each month,” says the Federal Reserve.

[Ready to switch to a 15-year loan? Click to compare rates from multiple lenders now.]

Con #2: If You Move Out of Your Home Soon, Refinancing Could Cost You

Planning to move out of your home in the next few years? If so, it may not be the right time to refinance.

Why? Because if you move soon after you refinance, “The monthly savings gained from lower monthly payments may not exceed the costs of refinancing,” the Federal Reserve says.

If you will be moving – and you still want to refinance – the Federal Reserve suggests using a break-even calculation, which could help you figure out whether it’s a smart decision.

Unfortunately, sudden changes like job relocation or a divorce may be out of your hands.

But if you do sense that the future in your home is a bit unstable, you may want to hold off on refinancing.

Pro #3: You Could Switch to a Fixed Rate Mortgage (FRM)

Cheat sheet: an interest rate on a fixed-rate mortgage (FRM) remains the same for the life of the loan, while an interest rate on an adjustable-rate mortgage (ARM) adjusts periodically based on an index.

And if you currently have an ARM, now is a great time to refinance to an FRM.

In fact, with rates at historic lows, an average of 3.39 percent on a 30-year fixed-rate mortgage as of November 1, according to federal lender, Freddie Mac, there may not be a better time to refinance.

“Given the uncertainty in the real estate market and the historical low rates on offer now, I always advise my clients to go with a FRM wherever possible,” explains Shekhar.

So, to avoid any uncertainty with your mortgage payments, you may want to refinance and lock in today’s record-low rates.

If you’re still unsure, then consider this: If you stick with an ARM and rates go up in the next few years, will you be in utter regret?

[Think a fixed-rate mortgage is right for you? Click to compare refinance mortgage rates now.]

Con #3: If Your Credit Score is Bad, Refinancing May Yield a Higher Rate

Have you struggled to make your last few credit card payments? Has your credit score suffered as a result?

If so, refinancing may not be in your best interest, especially since a bad credit score often means having a higher rate when you refinance, explains Shekhar.

“For every 20 point drop in credit from 740, you pay higher in closing cost, interest rate, or both,” says Shekhar. “In some cases, your closing cost can increase by 2 percent or more.”

As you can see, a bad credit score could definitely work against you during the refinancing process.

So, before you refinance, it might be a good idea to try and improve your score by paying credit card bills on time and keeping balances low on your credit cards, according to myFICO, the consumer division of the Fair Isaac Corporation, which provides a global standard for measuring credit risk.

cropped-2.jpg

More Changes Coming To Philadelphia’s Zoning Code ?

Additional Changes Proposed to Philadelphia Zoning Code Will Affect Developers and Property Owners
Philadelphia’s first new Zoning Code in decades, effective on August 22, 2012, was the culmination of a more than a four-year reform process, involving many stakeholders.  Elliott Greenleaf’s Rich DeMarco was a integral member of the Zoning Code Commission that prepared the new zoning code. The new Code is expected to streamline the zoning process and spur beneficial development in Philadelphia.

In the last two weeks, Philadelphia’s City Council began hearings on additional significant changes, which will affect developers and property owners, including City Council Bill Number 120656. This Bill significantly alters dimensional and parking requirements for multi-family dwellings within two very common zoning classifications that permit multi-family use, RM-1 and CMX-2, rendering it difficult, if not impossible, to construct triplexes on lots within these classifications. Because of the commonality of substandard lot sizes within the city and within these classifications, the changes in this bill will cause numerous new projects to require zoning variances, resulting in numerous cases requiring Zoning Board review. It would also encourage the construction of unfeasible duplexes with overly large units, especially if the developer wanted to proceed “over the counter.”

This proposed changes moved out of the Council’s Rules Committee with a favorable recommendation on October 31, 2012; however, a critical amendment offered by the Building Industry Association (which proposes to lessen the adverse impact of the changes) was not voted on by the Committee, and must be submitted on the Council floor at an upcoming Council meeting. The passage of this amendment will be critical to mitigating the Bill’s adverse impact on development.

Property owners in Philadelphia with plans to construct multi-family dwellings on their lots should immediately become familiar with Bill 120656.

The REAL, Real Estate Recovery is in full swing!!!

Great article from Prudential Fox & Roach Realtors CEO, Larry Flick  http://blog.prufoxroach.com/2012/10/26/fall-winter-2012-chairmans-report-its-real-its-now/

It’s Real…It’s Now!

It’s real.  Our real estate market has definitely turned the corner. Year over year pended sales have been ahead each month since April 2011, and home prices leveled out at the end of that year as well.

Data aside, the activity we’ve seen in 2012 shows that the pent-up housing demand from those five challenging years is now being unleashed. As we move forward, I believe our economy and real estate market will continue to grow at a slow and steady pace. Why?

  • Over the past five years, many potential buyers experienced life events, both good and bad, that would have prompted them to buy a new home. They held off because they were concerned about the economy and how it might affect their employment or future earnings. Now, homebuyers are overcoming these hesitations, gaining confidence, and deciding it’s time to find the house that meets their present needs.
  • Consumers are now confident that prices have stabilized.
  • Interest rates are unbelievably low, and will rise as the economy improves.

.

New Construction Specialist!!

As many of you already know, I have specialized in New Construction Developments for over 12 years – FINDING the site for my developer clients, DESIGNING the project and SELLING the finished product. In the Center City Philadelphia area I have been involved with over 250 New Construction Projects. Being the Knowledgeable and “HANDS ON” during Every Phase of the project has been our key to SUCCESS!!

If any of you ever need any guidance or an opinion on your Current or Future Development please do not hesitate to contact me. My Staff and I are willing to share our time and expertise with you.

Jim Onesti,  Mccann Team, Prudential Fox & Roach Realtors   215-440-2052   215-627-6005  Jonesti@MccannTeam.com