New Ice Rink in Silver Spring

The former Veteran’s Plaza in downtown Silver Spring has had a make-over.  It’s now the Veteran’s Plaza Ice Skating Pavilion. A full-sized, outdoor rink offers skating for young and old, with rentals of both Ice Hockey and Figure skates in sizes from toddler to Adult 13.

Rink manager Mercedes Gavigan said that business had been booming, and she expects that to continue. 

The rink is located at 8523 Fenton Street, at the corner of Fenton and Ellsworth Drive. For hours and other information, call the Skating Hotline at 301-588-1221 or check out their website at http://www.silverspringiceskating.com/.

                                                    

Bundle up, grab the family, and head to Pavilion for some outdoor winter fun!

Contact me today for expert help buying or selling in the DC, MD, & VA area!

Keep an Eye on 2011 Mortgage Rates

You could possibly pay more to buy or refinance a home in 2011, says a recent New York Times article. Rates for thirty-year, fixed-rate mortgages, the most common type of home loan, have risen steadily since their lowest point in mid-November, 2010.

According to Freddie Mac, rates on December 16 were at around 4.80 percent, up from 4.17 percent in early November, but still significantly lower than the 5.21 percent of April 2010.

Some experts think the current increase could be caused in part by rising interest rates on government Treasury and other bonds, which mortgage rates tend to follow. Treasury rates are rising on fears of inflation, the rising budget deficit, and nervousness over the effects of unemployment on the economy.

However, some are downplaying this increase as temporary. One Freddie Mac economist believes that 30-year fixed rate loans will stay below 5 percent in 2011, and still others think the rates will drop again in the next 60 days.

Compared with the 6 to 8 percent interest rates over the past decade, the current rates still make it affordable to refinance or buy—and there was great demand for refinancing in 2010, with more to come in 2011. What may make it harder are tighter requirements from lenders and the still-depressed real estate market.

Your best bet is to stay aware of the rate changes, but don’t over-analyze. It’s tough to hit a bull’s-eye on a constantly moving target, so try not to worry if the rate drops after you’ve locked in. It could very well have risen instead. Make the jump when it works best for your budget and then enjoy your home.

Contact me today for expert help buying or selling in the DC, MD, & VA area!

DC Home-buyer Tax Credit Can Put You in a New Home for the New Year

Live in DC and need a break to buy a home? Congresswoman Eleanor Norton has won another two-year extension of the $5,000 DC home-buyer tax credit. The incentives are retroactive for 2010 and will continue through 2011.

This is in addition to the 5-year property tax abatement program currently in effect in DC. Income limits apply for both programs and you will need to complete separate forms for them. If you are considering the purchase of a new home in DC for the first time, contact real estate agent Mynor Herrera to help you determine how the DC home-buyer tax credit can put you in a new home for the New Year. - and possibly gain the Tax Abatement as well. 

The DC Home-buyer Tax Credit is a credit against the home purchaser's federal income tax. Homeowners can get a credit of up to $5,000 for their purchase. This is in addition to the DC Property Tax Abatement program.

Anyone who is a first-time buyer in DC is eligible for the tax credit. Persons who have previously owned a home outside of the District are also eligible. Purchasers may not have owned a home in DC for at least one year prior to the new purchase.

There are income restrictions for the tax credit. In addition, the dwelling must be residential. This includes houses, house-trailers, houseboats, cooperative apartments, and condominiums. There are no period of ownership restrictions or requirements however, the home must be the main residence of the purchaser. There are also forms that need to be completed in order to qualify for the credit.

The DC Home-buyer tax credit is one of the ways to help you purchase a new home in the District of Columbia. To determine how the DC tax credit can put you in a new home for the New Year, contact DC-area real estate expert Mynor Herrera.

New Credit Score Policies in 2011

If one of your 2011 New Year’s resolutions is to buy a home, start working now to boost your credit score. The rules of credit scoring are about to get much more rigorous, according to an article from the website Walletpop.com.

FICO and VantageScore, the two most widely used credit scoring systems, have been significantly changed to help lenders know who might decide to strategically default on a mortgage. The new credit scoring rules mean banks can more effectively manage their lending risks and perhaps prevent future strategic defaults.

VantageScore has become VantageScore 2.0, which now checks a larger set of credit data over a longer period of time. For borrowers, this system now puts more emphasis on some credit behaviors than others. For example, filling out lots of new applications for credit—i.e. shopping around—now accounts for 30 percent of your score. Under the previous version it was 10 percent. But your balances and length of credit history are now less significant.

FICO is now FICO 8 Mortgage Score and officials claim it can more accurately predict defaults by 15 to 25 percent. One FICO executive says it has the “ability to use the most advanced predictive analytics to compete and win in this highly challenging environment.”

With all of this data now available to lenders, who are jittery in this economy, it could be more difficult to qualify for a mortgage. For your best chance, learn how the new rules operate and keep your credit rating as solid as possible. It’s all about proving to lenders that you’re well worth their risk.

Contact me today for expert help buying or selling in the DC, MD, & VA area!

Step Up Against Cutting MID

Homeowners be aware! The Mortgage Interest Deduction (MID) is at risk of being reduced, or cut entirely. However, the MID is vital to both home ownership and to our economy. Mortgage interest has been deductible for nearly 100 years, and the proposed changes will affect all 75 million home owners in the United States.

What is the Mortgage Interest Deduction? A home mortgage interest deduction allows taxpayers who own their homes to reduce their taxable income by the interest paid on the loan, which is secured by their principal residence (or even by a second home). 

Since the Deficit Commission announced its conclusions, the news media have been buzzing about the report, by emphasizing the proposals to limit – or even eliminate – the Mortgage Interest Deduction. By doing this, it will put the general public, and, more importantly, potential buyers into a panic, and perhaps even cause buyers to shy away from the housing market. This will hurt homeowners twofold: lost interest deductions, and, when it’s time to sell, a small buyer pool. 

The public needs to understand that this is a proposal, and not a “done deal.” While efforts to reduce the deficit are understandable, cuts like this should not be made in an already-fragile housing market.  

It is not too late for you, as a homeowner, to stand up and call your Representative to voice your concern – and express to them how much home ownership matters. Ask them to defend the Mortgage Interest Deduction from any cuts or reduction as outlined in the Deficit Commission Report. 

Click on the graphic or on this link to place your call NOW! You will enter your cell phone number, and receive a call back. Make sure to tell your representative how important it is to you, as homeowner, to keep this deduction intact.

Contact me today for expert help in buying or selling a home in DC, VA, or MD.

Beware of Foreclosure Rescue Scams: Help is Free!

In these tough economic times, you may have lost your job and fallen so far behind on your mortgage payments that you fear you home will be foreclosed. 

You are fretting about this, when all of a sudden, you receive a call from a company that promises to help you. Or maybe, as you are trying to channel surf your problems away, you hear an infomercial touting the fact that someone has the answer to your housing woes! They will share it with you, if you just call for free mortgage help. Operators are standing by....  Either way, you feel hopeful that things will work out, and you are very receptive to what the company has to say.

Before you get involved with “help” like this, check out the government site Making Home Affordable. This site was set up after President Obama announced his programs to help avoid foreclosure. Even if the federal program cannot help you, the website offers good advice for staying clear of schemes that will make your situation worse. Not everyone who says they understand your dilemma has your best interest at heart.

Beware of Foreclosure Rescue Scams - Help Is Free!

As the site notes:

• Beware of anyone who asks you to pay a fee in exchange for a counseling service, or modification of a delinquent loan.
• Scam artists often target homeowners who are struggling to meet their mortgage commitment, or anxious to sell their homes. Recognize and avoid common scams.
• Assistance from a HUD-approved housing counselor is FREE.
• Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer the deed to your house.
• Do not sign over the deed to your property to any organization or individual, unless you are working directly with your mortgage company to have your debt forgiven.
• Never make a mortgage payment to anyone other than your mortgage company without their approval.

How the Scammer Programs Work

There are many variations on these scams, but in any case, you usually end up in worse shape.  Foreclosure scams fall into three main categories:

Phantom help: The company promises to contact your lender, which they may or may not do, regardless of what they tell you. They may fill out some basic paperwork you could have completed yourself.

The bailout: The company offers to buy the home and rent it back to you, until you can buy it back. Many times, they pocket what you pay while never dealing with your lender, so you end up with no property and no place to live.

The bait and switch: The company may have you sign documents to make the mortgage current, but actually you are signing over your home.

Free Help Available
Not all companies who charge a fee for mortgage help are scammers, but if you’re at risk of foreclosure, legitimate free help is available from several sources:

The Federal Government through Making Home Affordable.  Even if you do not ultimately qualify for this program, there is plenty of free or very low cost help available from HUD-approved counselors and non-profit groups that will either help you stay in your home, or move on to a new stage in your life. Ironically, since the government started its program, foreclosure scams have actually been on the rise.

The State of Maryland through the HOPE Program.  HOPE (Homeowners Preserving Equity) is committed to helping both owners and renters affected by impending foreclosure. Homeowners can find information about free foreclosure prevention counseling by calling the Maryland HOPE Hotline at 1-877-462-7555, or by visiting their counseling page.  More Myths and Facts about Foreclosure Prevention are revealed on their website.

If you are at risk of losing your home, don’t be scared and don’t be scammed!

Contact me for expert help in buying or selling your home in the DC, MD, or VA areas.

2010 Cares Committee Update

 

As a member of the Board of Directors for both the Greater Capital Area Association of Realtors (GCAAR) and the Affordable Housing Conference (AHC), I was proud to be a part of the awarding of various grants from GCAAR to local charities, including AHC. Among those pictured holding the check are GCAAR President, Shelly Murray, GCAAR Cares Chairwoman, Barbara Miles, AHC Executive Director, Lise Tracey, and myself, Mynor Herrera.

Come to the GCAAR Cares Event at Fire Station Restaurant Today!

If you happen to be in the Silver Spring area today, please join us for a fun dine-out at Fire Station Restaurant.  I'm helping to promote this event as a member of the community service committee for the Greater Capital Area Association of Realtors®.

Print the flyer here and come out for a great time!

How Is Today's Market? Are Multiple-Bids Back?

Read this SmartMoney article and this Wall Street Journal article, in which I was quoted discussing another sign that the market is making a come back in stronger markets such as ours. Find out what buyers should expect, especially in purchasing well-priced homes and foreclosures.

Competition is back for home buyers, says the Wall Street Journal web site, and it’s a good sign. Competition signals housing market recovery, but it also creates bidding wars.

Winning a bidding war can generally snag you a house at a bargain price, but bidding wars actually drive home prices up because they play on buyers’ worst fears. When a bid is rejected, it makes a buyer want to be more aggressive and move faster on the next offer.  This can then push home prices higher than they are really worth.

Experts say there are three things you can do to avoid a bidding war or to survive should you find yourself involved in one.

• Research a neighborhood’s home inventory – Find out the number of active listings in an area versus those under contract. Many active listings mean prices have dropped significantly in that area due to a glut of available homes. In this case, a bidding war might work in your favor—even if buyers bid up the price, the house could still sell for less than it’s worth.

• Check employment numbers – Where there are strong employment numbers, there are people with the good buying credentials, i.e. a down payment and work documentation. Expect bidding wars in these areas.

• Be prudent with foreclosures – Don’t lose track of your goal with a foreclosure—to get a huge discount on the home you buy. Bank-owned homes sell for about 36% less than regular listings, so you wipe out any savings by bidding the price up above that level. And that doesn’t include potential renovation costs. 

Be aware of when you might be walking into a bidding war so you can choose whether or not to engage in battle. Know your price limits and when to walk away to fight again another day.

Contact me today for expert help buying or selling in the DC, MD, & VA area!

Working Successfully with Short Sales, Foreclosures and Mortgages

As a member of the Board of Directors for both the Affordable Housing Conference and the Greater Capital Area Association of Realtors, I'm helping to organize a free three credit hour class with lunch for Realtors that is geared at successfully navigating short sales, foreclosures and mortgages in our current working environment.

For additional information or to register, click here.

SPANISH IMMERSION PROGRAM AVAILABLE FOR MONTGOMERY COUNTY ELEMENTARY SCHOOL STUDENTS

Many of you living in the Rosemary Hills, Rock Creek Forest and East Bethesda area have always had a strong interest in learning more about the Spanish Immersion program offered by Rock Creek Forest Elementary in Chevy Chase, MD. Yes, there is an application and lottery process. To learn more, click here to download a PowerPoint presentation that was recently given on this topic.

Buena suerte!

PREPARE YOUR HOME FOR THE COLD SEASON

This was sent to me from a respected home inspector...It's fall and that means it's time to get your home ready for the upcoming cold weather. Check out the tips below for ideas on how to keep your home more comfortable and efficient this winter.

Seal Drafts - Seal holes, cracks, and openings in your home to stop the flow of heat through the walls and ceiling.

Keep Your Pipes Pumping - Pay less for hot water by insulating pipes. This will also decrease the chance of pipes freezing.

Clean Those Gutters - Once the leaves fall, remove them and other debris from your home's gutters so that rain, melting snow, and ice can drain properly.

Bundle Up - If you have a tank style water heater, wrap it in an insulation blanket to prevent needless energy use.

Turn It Down - Many conventional water heaters are set too high. Try lowering the temperature setting a notch. A lower setting may be hot enough. When you leave the house, turn down your thermostat so you aren't paying for heat you don't need - or consider installing a simple programmable thermostat that will adjust the temperature automatically.

Furnace Care - A simple way to keep your home warm while cutting down on energy waste is by replacing your furnace filters or cleaning them as needed. Follow the manufacturer's instructions.

Insulate - One of the most effective ways to keep a home warm is to install adequate insulation. This is especially true in attics and crawlspaces. Insulation helps keep the home cool in summer and warm in winter.

Use Energy Star® - Energy Star qualified products help you save energy and reduce greenhouse gas emissions. The Energy Star label can be found on more than 40 different kinds of products for the home including heating and cooling equipment, electronics, lighting, and appliances.
Stay warm!

IT'S TIME TO BUY...TWO IF YOU CAN!

I have been preaching this to my buyers for some time.  It is time to buy, especially now that interest rates are at 4.5% on a 30-year fixed loan!  Here are two articles that do a better job verbalizing my opinion.

 If You Don't Buy a House Now, You're Stupid or Broke

Granted, this is an old article that ran in Business Week.  However, interest rates are even lower now, so the point is even stronger.  This article does the math for you to illustrate the point.  Every  .25% change in interest rates is equivalent to approximately $6,000 for every $100,000 borrowed over the course of 30 years.  Thus, you pay approximately $50,000 more for a $400,000 loan if the interest rates tick up .50%.  Do you get it now?

Enough of the Doom and Gloom about Homeownership 

This piece ran recently in the Wall Street Journal.  The only thing I would add is, it is not a buyer's market in sought after areas.  We are seeing multiple offers and a lack of inventory because homes are selling so quickly.  However, there are a lot of areas where you can still get GREAT deals.  If you can buy, buy two!

Welcome to my blog!

Welcome to my new website and blog. I'm very excited to launch after embarking on this adventure over a year ago. What can I say? I've been busy selling homes!

So I won't bore you with more details about me. You can go to my About page to find out I'm top 5% nationwide. ;-)

What I do want to do is encourage you to send me your questions and comments so that I can discuss with our little community. I would also like for you to check back every now and then to see what I have to say about current market conditions, specific homes, benefits (and downsides) of communities where I do a lot of work and anything else that's relevant to real estate or the communities in which we live. Basically, start to consider me as your resource for all things real estate.

Thanks for reading. I hope you find my information useful!