Category Archives: Interest Rates & Financial Information

Nashville New Homes: Mortgage Costs to Rise – Soon.

Please don’t be surprised.  You have heard all the news that “Home Affordability is at a peak.”   If you still don’t believe it, keep waiting…… and pay more as a result. 

Those that have aspirations to own their first home, change their lifestyle with another home, or purchase a vacation/future retirement home have a great opportunity RIGHT NOW to get just a bit more for quite a bit less!

Here is one increase that is definite.  On FHA loans, MMIP (Monthly Mortgage Insurance Premiums) will increase by .25% on new loan files initiated after April 18, 2011.   An active loan file is considered to be one that has a “FHA case number” assigned to it.  If your new loan file has a case number before April 18, you are fine.  If it doesn’t, you will pay more.

 How much more?  It depends on the home you buy.  For example, if you purchase a $165,000 home and do not have a “case number” before April 18th, your payment will be $34 more each month after the increase.  That is not the end of the world, but it is $34 each month, and you must qualify for that additional amount too!  

If you contract to purchase now, and begin the loan process, you can purchase approximately $5000 more home than you will be able to if you wait.  And THAT is assuming that interest rates remain the same.  Bets anyone?

Here is the full scoop:

http://www.quickenloans.com/mortgage-news/fha-loan-requirements

Keep in mind that you do not have to actually close on your new home by April 18th to take advantage of the lower premiums.  All you need is an accepted contract and a loan in process.  Consult a mortgage professional for more information.  If you don’t have one in mind, give Chris Meagher at Ole South Financial a call, 615.898.7152.  Take advantage of the “peak affordability” today!

In the meantime, visit www.OleSouth.com.  We define “affordability” in new homes all over Middle Tennessee.

Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019  direct 615.593.6340.  Specializing in new home sales in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, and Spring Hill, Tennessee

Nashville New Homes: Just when is Spring Break anyway?

Although it was light years ago, I still remember when the school year school started after Labor Day, and ended before Memorial Day.  It seemed like all of the area school systems had the same calendar too.  If we had snow days to make up, we would either add an extra hour to the day…or go to school during one of those teacher “in-service” training days.  Sure seemed a lot simpler back then.

I can also remember when Spring Break actually happened in the Spring.  Now, many systems are calling it “Winter Break.”   Which is it?  Well, it depends on what school system you are in… and possibly where you may travel.

At the bottom of the page are the various Spring Break schedules for the school systems of Middle Tennessee:  (Believed accurate but not guaranteed – confirm with school system if important)

RIGHT NOW, it is “Spring Break” for home buyers, especially those buying their first home!  I won’t dwell on it, but home-affordability is at a peak RIGHT NOW.   Inflation aside, the costs of purchasing a home with a FHA loan will rise on April 18th for everyone that does not have an active purchase contract in process.  Buy a new home NOW and you will get more house NOW for the same monthly payment you will have by waiting…. and that is IF interest rates and prices do not rise, which we all know they one day will.  And so will your rent.

First-time homebuyers can purchase a home with ZERO cash-out-of pocket using THDA’s “Great Start” program through Ole South Financial (898-7152).  Veterans may also purchase with ZERO DOWN using  a VA Loan.   Consult Ole South Financial, or your favorite lending professional for more information.

Even better, certain members of our armed forces are still eligible for Home Buyer Tax Credits if they purchase by April 30th, 2011 and close before June 30, 2011.  That is terrific news, especially for those returning to Ft. Campbell from recent tours of duty.  (Click below for more details.)  Remember, we have new homes in Clarksville too!   

http://www.federalhousingtaxcredit.com/service_mem.php

Now that you know “Spring Break” is NOW for home buyers, here is when it occurs in our area schools:  (check school system for most current information regarding snow day make-up calendar)

Metropolitan Nashville Public Schools     March 11 – 18          www.mnps.org

Rutherford County Schools                            March 21 – 25         www.rcs.k12.tn.us 

Murfreesboro City Schools                             March 21 – 25          www.cityschools.net

Sumner County Schools                                   March 11 – 18           www.sumnerschools.org

Williamson County Schools                            March 21 – 25           www.wcs.edu

Franklin Special School District                    March 21 – 25           www.fssd.org   (balanced schedule is 3/14 – 25)

Wilson County Schools                                     March 14 – 25            www.wcsschools.com

Lebanon Special School District                   March 14 – 25            www.lssd.org

Maury County Schools                                      March 21 – April 1   www.mauryk12.org

When your kids learn of “Spring Break” in Maury County, they will want to move there.  Why not visit the new homes we have there in Cobblestone and Meadowbrook?  Learn more at www.olesouth.com!

Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019  direct 615.593.6340.  Specializing in new home sales in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, and Spring Hill, Tennessee

Nashville New Homes: 2011 – The Year of the New Home.

For the past several years, those bearing bad news have held a firm grip on the microphone.   After all, they had a lot of negative things to report, so lets not blame them.   Bad news does sell.  And people do buy it…that is, until they have heard enough!

Since the first of January, I have been asking prospective home buyers a question…. “If you had purchased 60 days ago, you could have saved a little bit more money.  Interest rates have edged up slightly, even though they are still at record lows.  Just what has made you come out to explore now?”  (Please keep in mind that these prospective buyers are among the NINETY PERCENT of people that still have jobs in this country.)

 The responses are very much the same across the board.  “I’m hearing more positive news, I feel good about my job, and I know my rent will probably go up next year.”   OR …  “We’re getting closer to retirement and probably won’t have another chance to buy with interest rates this low.”

Folks, the “bearers of good news” are now getting their time at the microphone!   And the message is getting across.  It is certain, and sad, that many Americans are still without work.  The NINETY PERCENT that still work will be the ones that turn this economy around, and help put those unfortunate ones back to work.  If we truly want that to happen, we’ve got to communicate positive news whenever possible.

Let’s take a look at the good news that is now circulating…..

http://www.inman.com/news/2011/01/27/real-estate-sales-rebound-in-2011-prices-nearly-flat

We all know that the price of things are a simple result of “supply and demand.”  We all know that there is a finite supply of land… there’s just not any more of it being made.  Here’s another opinion of why now is the time to buy:

http://realestate.msn.com/article.aspx?cp-documentid=23505825

I can tell you that our sales have picked up dramatically and our inventory of completed homes is being snatched up quickly in many areas.  WE ARE BUILDING MORE!  Please visit www.OleSouth.com for information on all of our new home neighborhoods in Middle Tennessee.

No two pieces of property are the same, and no two areas are alike.   You have got to weigh the “risk vs. reward” and at the same time keep in mind that you are buying a home first, and investment second.  And the most important part…. you will one day own it, something you cannot say for your apartment. 

Things are looking better for the housing industry, but at the same time we also have to be realistic, as you can read here:

  http://www.calculatedriskblog.com/2011/01/new-home-sales-increase-in-december.html

From a person that specializes in selling new homes, there is a good chance you will always hear … “now is the time to buy.”   We are not trying to be intentionally misleading.  In most cases, compared to renting, “anytime is a good time to buy, but some times are better than others.”  Feel free to quote me on that!

How things are really does depend how you choose to look at things.  I prefer optimism over pessimism anyday.

One thing I can say factually, there is a small village in southern Honduras, near Choluteca, that will soon be looking at their homes in a totally different light….actual light…. at night!  They will also have access to filtered drinking water for their homes, and a more healthy cooking stoves thanks to District 6760 of Rotary International.

Read more about our upcoming trip here:

https://nashvillehomesblog.com/2011/01/19/nashville-new-homes-assafartay-is-going-to-honduras/

There will more than likely not be any blog posts until I return, but you can count on quite a few recaps then!  Many people warn about posting travel information online, and for very valid reasons.  I have a few valid reasons not to worry about that:  A great home security system, a wife that is proficient with guns, and good insurance.  Bring it on!

Happy Buying & Selling in 2011.  It really can be the “Year of the New Home.”  YOURS!

Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019  direct 615.593.6340.  Specializing in new home sales in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, and Spring Hill, Tennessee

Nashville New Homes: And what else does the groundhog see?

Every year on the 2nd of February, certain people brave the frigid weather to gather in their traditional spot for the “made-for-tv” event, Ground Hog Day.   That traditional spot is Punxsutawney, PA and the celebration is all about the groundhog, Phil, seeing his shadow…. or not.

There are mysteries surronding this momentous event.  Why Punxsutawney, PA?   I cannot imagine the sun having many chances to shine there any during the winter.  Why not Jacksonville, Myrtle Beach, or even better..Roatan , Honduras?  Why do people give Phil’s annual appearance any credibility at all.  He has only been right 39% of the time, much like our local weatherfolks!

Here is the history of this day in folklore, along with his predictions over the years.   http://www.stormfax.com/ghogday.htm

And the results of today’s ceremony……  http://www.examiner.com/holidays-in-providence/groundhog-day-2011-results-did-punxsutawney-phil-see-his-shadow-on-feb-2nd

OK, Phil did NOT see his shadow, which means he is not scared to come out.  Winter will soon be over and it is time to prepare for spring.  What else did Phil see?   Better yet, what are WE seeing?

According to USA Today, growth is on the upswing for 2011.  Now, you too can come out of your hole! 

   http://www.usatoday.com/money/economy/2011-01-24-1Aecon24_ST_N.htm

We can expect a rebound in home sales.  More people are renting now than before the boom years of 2000-07.   Some should not have been able to purchase a home in the first place, but there are many more out there that can and will purchase a home as the job market improves.    Read more:

http://online.wsj.com/article/SB10001424052748704254304576116402472968150.html?mod=wsj_share_facebook

And speaking of job growth, the Greater Nashville area is steadily recovering, and will continue to throughout the year.   Williamson County ranks 3rd in the US in job growth.  Check it out!

http://www.wkrn.com/Global/story.asp?S=13942518

Supply and Demand:  As the economy improves, demand for homes will rise, and so will home mortgage interest rates.  Prices in the Greater Nashville area have stabiilized and will be on the rise as our economy regains its health.  Those that do not own a home should get off the fence NOW.  Nothing to lose, and all to gain.   Read more:

http://online.wsj.com/article/SB10001424052748704268104576107923872216898.html?mod=wsj_share_facebook

Which brings me to the conclusion:  If you are considering buying your first home, or any home for that matter, you will not find a better value than in a new Ole South home.  Visit www.OleSouth.com for more information on our Middle Tennessee neighborhoods.  Just like the ground hog discovered today, it’s okay to come out and look around!

Happy buying and selling!

Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019  direct 615.593.6340.  Specializing in new home sales in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, and Spring Hill, Tennessee

2010 Home Sales Results Middle Tennessee

2010 Home Sales Results Middle Tennessee.

Nashville New Homes: Do the math…again.

Back in my school days, I had a teacher who’s favorite response when asked advice was to “do the math.”  Whether it was about which girl to ask out, or which class to take, “do the math” was always the answer.  Pretty sound advice too!

If you don’t own a home right now,  and you are paying rent,  its time to do the math.  Home ownership isn’t for everybody, but it is an important component of your future financial health.

Here is a helpful calculator to help you “do the math,” courtesy of Ginnie Mae, aka Uncle Sam:   (Use these numbers … 4.75% interest rate, 30 Year term, and 3.5% minimum down=payment.  First time buyers may qualify for ZERO down, using a 4.85% interest rate.  Visit www.thda.org for details) 

http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy_calc.asp?section=YPTH

Even if you already own your home, the low fixed interest rates of today probably have you thinking about that next home, whether larger or smaller.  Go ahead and admit it.  After all, now really is a great time to buy that new home you have always wanted.  The perfect time may not be there for you down the road.  

Recently, I heard another creative reason for now being the time to buy.  If you wait much longer, interest rates will be substanitally higher.  Those that took advantage of historically low rates will not be wanting to sell and give up their historically low interest rate for a higher one.   If  there is a home on the market that you like, and can afford, buy it.

Okay, so your existing home may not command the sale price it would have a few years back.  Neither is the new home you are wanting to buy.   Lose and save?  Gain and pay?  “Do the math.”   When doing that math, keep in mind that your house is your home first, and investment second.

Have Questions?  We have answers.  Visit any of our www.OleSouth.com Greater Nashville New Home neighborhoods and explore all of your many options.  We take the stress out of buying a home!  And we’ll give you a stress ball too!

Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019  direct 615.593.6340.  Specializing in new home sales in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, and Spring Hill, Tennessee

Nashville New Homes: Make home buying fun!

Every Real Estate professional I know likes to have fun, and likes to provide their clients an enjoyable buying or selling experience.  Some are better at having fun than others.

Every home buyer likes to have fun too.  They want to have fun and have an enjoyable home buying experience also.  Just like Realtors, some are better at having fun than others.

You don’t buy a new home every day, so why not make the most of the experience?  Here are a few tips:

1)     Focus on your new home as HOME!  Don’t stress on investment potential.  The very lifestyle factors that attract you to the home will attract others.  Your home will not be a “get-rich-quick” tool, but will lead to a more secure financial future.  Even with zero appreciation, you will have something to sell when it is paid for.  Try that with an apartment!  Even in today’s economic climate, homes in Greater Nashville have averaged 3.5% appreciation over the past 10 years.

2)     Explore the basics of home mortgages.  Know your financial capabilities before you shop and have a source for your required down-payment.  In Tennessee, first-time buyers may be eligible for their down-payment to be paid by THDA’s Great Start program.  Visit www.THDA.org for more information.

3)     Explore different areas close to, and further from work.  You may actually find your best quality of life in an area you have never thought of!  There are more ways to find information now than ever.  Use them!  It doesn’t cost anything to look.

4)     When choosing a Realtor or a home builder, find one that you personally like and can develop a relationship with.  After all, it is your money…you might as well have fun spending it!

5)     Contrary to popular belief, there is a perfect home at the perfect time.  When you find a home you like, that meets all of your needs, is within your budget, and gives you a warm feeling inside…that is the one.  No two homes are exactly alike, so questioning your emotions may actually cause you to miss out. 

6)     Too many cooks…. well you know the saying!   It never hurts to get advice from people you like and trust, but the more people you consult, the more opinions you will get, which most likely will add confusion.  Trust yourself first.  Others later.

At Ole South, we’ve made homebuying fun for over 25 years.  We take stress out of the equation and allow you to focus on what is most important to you…your new home.  Visit any of our Middle Tennessee locations today.  We’ll even give you a little yellow stress ball for starters!   Give me a call when you are ready to explore.

Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, www.OleSouth.com, 615.896.0019  direct 615.593.6340.  Specializing in new home sales in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, and Spring Hill, Tennessee.

Nashville New Homes: 2011 is looking up!

The New Year of 2011 is upon us, and I couldn’t be happier!  Even the media is spreading positive news about the housing industry.  Here’s one example:

http://www.businessweek.com/news/2010-12-28/housing-seen-rising-to-3-year-high-with-boost-for-jobs.html

The time is now to buy a new home.  Not just because fixed interest rates are historically low and rising, Not just because costs are going up and not yet being passed on to the consumer.  Not just because of great incentives and selections of brand new homes at www.OleSouth.com. 

Buying a new home offers many tax advantages for those that can itemize expenses.  Your closing costs are deductible.  Your property taxes are deductible..and the list goes on.  Here is a list of 2011 tax tips.  Pay special attention to #4!

http://www.bankrate.com/finance/taxes/10-tasty-tax-tips-for-2011-1.aspx?ec_id=cmct_003

If you weren’t able to purchase a new home in time for Christmas, inking a contract before the New Year could be the next best thing!

Nashville New Homes: Ten more days…

Isn’t it hard to believe that in just 10 days it will be Christmas morning?   The Christmas programs that everyone has been rehearsing for will be over, another Christmas Eve will have passed, you’ll have a new supply of King Leo candy sticks, and if you need anything at the grocery store, you’ll be out of luck and have to wait, or go visit Habib at the Kwik Sak.  Get a lottery ticket too while you are there.

Its also hard to believe just how bitter cold it is right now.  Very few things beat coming into a warm home when it is cold and I had the pleasure of welcoming a first time buyer into their brand new, warm Ole South home today.  That’s always a special time, but it was especially meaningful to me today… I had left my coat in the car!

If you haven’t bought the perfect Christmas gift for the family yet, consider a new home if you don’t own one already.  Can you think of a good reason not to?    You can own a brand new home in Nashville for less than $800 per month, including taxes and insurance.  And you can also pay more if you would like!

No matter how energy efficient your new home is, cold weather like we are experiencing right now will spin your meters like a roulette wheel.   Everyone knows that new homes have proper insulation, energy efficient windows, high efficiency heating systems,  efficient appliances, etc.   But here are a few helpful hints to save a few extra heating dollars with any home this holiday season:

1)  Try setting your heat at 65.   That sounds crazy, but we started that at our house several winters ago and it really has saved a fortune.  (If you think that is cold, go outside for a few minutes and then come back in) 

2)  If you have a central heating unit, switch the fan from automatic to MANUAL mode.   Warm air rises and cold air falls – leaving the fan on manual keeps the air evenly blended and actually reduces the time the heating elements are on. 

3)  If you have a heat pump, whenever you need to set the temperature higher, do it in small increments of 2 degrees.  This will keep the electric coils from kicking in, and slowly raise your temperature. 

4)  Build a Fire?????   I know people say not to use a fireplace because all the heat goes up the chimney and I think that is a bunch of crap.   If that is true, why do people build fires in the fireplace to keep warm when the power goes out?  Just a thought….

Also, no matter what type of home you live in, keep a pair of gloves, a flashlight, and a blanket in your car and keep the gas tank full.  This time of year, anything can happen on your way home from work.

Bottom line….Stay warm and take time to enjoy the season before its gone!

Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019  direct 615.593.6340.  Specializing in new home sales in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, and Spring Hill, Tennessee

Nashville New Homes: We told you so… But its still not too late!

Remember all the talk over the recent months about NOW being THE time to purchase a new home?   Realtors and Mortgage bankers have been preaching it.  Every financial planner has been agreeing.  I’ve written numerous blog posts about it too.  Many people listened and bought a new home.  Many people did not.  They are still renting.

Well, it still is a great time to buy a home….BUT…. you really should have bought when you were asked to several weeks ago!   No one wants to hear “we told you so” so I won’t say it.  

If you haven’t heard, interest rates have inched upward in recent weeks.  Here’s the story:  http://www.latimes.com/business/la-fi-mortgage-rates-20101210,0,1978719.story

But rates are still incredibly low, and there are many incentives to buy a new home right now.  The fact that a first time buyer can buy a home with little to no cash out of pocket, and have a 4.55% fixed interest rate is still incredible!  If you would like to know more about buying a home, call me…or your favorite Realtor.

A good credit score is a necessity for obtaining a mortgage loan, car loan, or most any loan for that matter.  Here is an interesting article about credit scoring, or as it says, credit ranking:  And we thought we had it all figured out!

http://www.zillow.com/blog/new-twist-your-credit-score-is-a-ranking-not-a-rating/2010/12/10/

Something else to think about… You will stay WARM in the winter and COOL in the summer, all while saving energy, in a brand new Ole South home.   Think about it, why shouldn’t you own a new home?

OK, lets say it again:  “If you have any desire at all to own a home, act now.”   You will be glad you did!

Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019  direct 615.593.6340.  Specializing in new home sales in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, and Spring Hill, Tennessee