Orangeburg SC Real Estate

Mortgage insurance tries to shake piggybacks
By Holden Lewis

(Thanks Mr. Lewis- my web prospects appreciate my providing them with your articles- they cannot find them on their own most of the time)


You can get lower monthly payments in some cases by getting a home loan with mortgage insurance rather than a piggyback loan. Don't assume that your loan officer or mortgage broker knows this.

"Our message to consumers is look at all the options," says Sal Miosi, vice president of marketing for mortgage insurer MGIC. "In many cases, it's a more compelling offer."
Mortgage insurance has become competitive with piggyback loans because of two developments. First, short-term interest rates rose during the Federal Reserve's two-year rate-hike campaign. That raised rates on the home equity loans and lines of credit that piggyback mortgages use. Second, mortgage insurance companies started pushing single-premium policies that could be financed as part of the loan.

The smaller your down payment on a house, the more likely you are to default on the mortgage and, thereby, cost the lender money and strife. The loan is considered quite risky if the down payment is less than 20 percent. One solution is mortgage insurance.

You pay, lender benefits

The borrower pays for mortgage insurance, but the lender is the beneficiary. Mortgage insurance reimburses the holder of the loan for foreclosure-related expenses such as missed payments, attorney fees and house repairs. The government offers mortgage insurance through the Department of Veterans Affairs and the Federal Housing Administration, and private companies provide the bulk of policies. This article addresses private mortgage insurance.

The cost of mortgage insurance varies depending on the size of the down payment and the borrower's credit history. It can be expensive, so the mortgage industry devised a way around it: piggyback loans. With a piggyback, the borrower splits the home loan in two: a primary mortgage for 80 percent, and then a home equity loan or credit line for 20 percent minus the down payment. Structuring a loan this way eliminates the requirement for mortgage insurance.
Piggybacks are described with three numbers that add up to 100. Each number is a percentage, starting with the primary mortgage, followed by the size of the equity loan and ending with the size of the down payment. If you made a 5 percent down payment, you would get a mortgage for 80 percent of the price, borrow 15 percent as an equity loan or credit line and pay 5 percent cash. That would be called an 80-15-5 piggyback.

Two or three years ago, when you could get a home equity line of credit at 4 percent or 5 percent, piggybacks were almost always cheaper. But now the average line of credit sports a rate north of 8 percent, and the average home equity loan is a shade under 8 percent. And rates on credit lines and equity loans usually run a little higher on piggybacks.

Bottom line: Piggyback loans have higher monthly payments than they used to have, while mortgage insurance costs the same.

John Kneece info@JohnKneece.com

www.OrangeburgHomes.com

803-378-5208

Toll Free to you: 1-866-419-7539

(John Kneece is licensed under ERA WILDER REALTY, INC.)

With TWO major Universities within the five mail radius of Orangeburg (metro)---- THIS IS IT for next year >>>>>>>


Echo boomers, children born between 1982 and 1995 to baby boomers, are about 80 million strong

RISMEDIA, August 24, 2006—“The student housing market is a good niche opportunity today,” said Kenneth T. Rosen, chairman of the Rosen Consulting Group, a real estate and economics research company in California. “The demographics are excellent, and the demand is great.”
Echo boomers, children born between 1982 and 1995 to baby boomers, are about 80 million strong. College enrollments have been on the rise while the supply of on-campus housing is dwindling.

Student housing projects are often leased by the bed, with parents increasingly guaranteeing the leases. The student housing market, which is estimated at $160 billion, has proven profitable for many investors. Capitalization rates can often exceed those on conventional multifamily projects.

Typical investors are independent companies and regional investment groups. Some tenants-in-common programs (TICs), offering fractional ownership of properties, also invest in student housing. Recently, three real estate investment trusts specializing in student housing have emerged — GMH Communities Trust, American Campus Communities and Education Realty Trust — making the sector more accessible to passive investors with less money to invest.
Through July of this year, American Campus Communities had a total return (price appreciation and dividend) of 10.07% while Education Realty returned 28.76%, according to the National Association of Real Estate Investment Trusts. By comparison, the total return for all equity REITs during that period was 16.12%, the association said.

Typically, student housing occupancy is near 100%. “The success of these investments is tied to college enrollment, not to external economic factors like job creation,” Michael H. Zaransky of Prime Property Investors and author, said. “In fact, one can argue that in bad economic times, people will want to pursue better credentials and go back to school.”

If you have money you would like to see making a brighter future for you--- call John Kneece at 803-378-5208 and discover how investing in student rentals can be your ticket to the biggest and most lucretive show in town!!

Own a home, grab the tax breaks
By Leonard Wiener
Posted 8/15/06
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The housing market may swell and ebb. But Uncle Sam keeps giving.

When President Bush last month decided it was time to address the NAACP, one message that won applause was endorsement of the American real-estate ideal.
"Owning a home gives people a stake in their neighborhood, a stake in the future," he declared.
The tax code backs up reverence for owning your abode with tax deductions for mortgage interest and property tax that in effect reduce your monthly bill. And some or all of your profit when you sell may face no tax at all.
An analysis released in late June by economist Robert Dietz of the National Association of Home Builders calculated that about 35 million households claimed $338 billion in mortgage deductions on 2003 returns, an average of $9,650. About 39 million deducted $119 billion in real-estate tax, an average of $3,000.
California led the nation in mortgage deductions with a statewide average of about $14,000 and a whopping $35,000 in the San Jose area.
High home prices and stiff real-estate taxes pushed New Jersey to the top spot in property-tax deductions, with an average of $6,000.
The builders played a political card in breaking out by congressional district the extensive use of the deductions. Some economists and tax reformers say the incentives encourage buying bigger homes than needed and boost prices by turning homes into a tax strategy. But howls from homeowners and real-estate groups restrain any moves to curb the breaks.
Losers? The five congressional districts making least use of the mortgage deduction were all in the New York City area, where renters loom large, highlighting the left-out feeling many non-owners sense.
"Deductions for home interest and property tax are often what allow first-time buyers to make a transition from taking the standard deduction to itemizing deductions," says Maggie Doedtman, a senior manager at H&R Block.
Melonie Loeb, a 30-year-old single mother in Overland Park, Kan., and fellow Block employee, took on a three-bedroom ranch in 2004, allowing her to deduct $16,141 in itemized deductions on her 2005 return. That eclipsed the $7,300 head-of-household standard deduction she would have taken as a renter.
Loeb is relieved that her 5-year-old daughter "can be loud without disturbing the neighbors." But she has also bought into the game plan of building equity. "The money I spent in rent went nowhere," she says.
Even revered breaks, however, have limits.
IRS Publication 530 provides a tax overview for first-time owners. Publication 523 covers selling a home. Publication 936 explains mortgage and home-equity deductions.

Experience:

My early background was in production management- a problem solver no doubt- I have lived in this market since 1975 and have worked with over 800 buyers and sellers since 1990.
Specializing: Relocation, Second Homes, and First-time home buyers

Help for buyers relocating to Orangeburg, Calhoun, or Bamberg Counties.

Financial expertise is invaluable when entering a different marketplace. John Kneece has spent many hours in seminars learning to assure that you get what you deserve without the hassle you could experience in the absence of good training and professional application of skills. (Mortgage Broker fees do not have to be part of your expenses in home buying)


John Kneece
ERA Wilder Realty, Inc.
1995 St. Matthews Road
Orangeburg, SC 29118

info@JohnKneece.com

WEB: www.OrangeburgHomes.com

CALL ME: locally (378-5208)

TOLL FREE: 1-866-419-7539

I have agents in all parts of Columbia, Rock Hill, Charlotte, Lake Norman, Lake Marion/Santee, SC, Sumter, and Lexington-

Do not throw darts at a board to choose an agent- allow me to put you in touch with one of our 400+ EXPERT RESIDENTIAL AGENTS... ERA-- that's what we do!!

Here is a quote published by RESMEDIA recently- The relevance of this comment lies in the part that says. “…especially in moderately priced areas where affordability conditions remain favorable….” This is ORANGEBURG COUNTY for certain!

"On one hand is the rise in mortgage interest rates that has slowed sales in many higher-cost markets, and on the other is 3.8 million new jobs over the last two years," Lereah said. "This means many potential home buyers could enter the market in the foreseeable future, especially in moderately priced areas where affordability conditions remain favorable. In fact, this is already occurring."

John Kneece the owner and developer of the localized website, www.OrangeburgHomes.com, has enjoyed helping folks who are drawn into this void- good prices and great employment. Visit the site to see over 800 homes and properties for sale in the area. Relocation is king with John Kneece and Orangeburg Homes dot Com. John Kneece is a 16 year veteran in the real estate services area and has functioned in the Orangeburg-Bamberg-Calhoun County market continuously for that time. John is currently associated with the multi-State real estate company, ERA Wilder Realty, Inc. Having direct access to agents in 17 different market all whom adhere to the same rules, ethics, and systems make John Kneece and Orangeburg Homes dot Com even more effective when families need information and help in areas of North Carolina and South Carolina which John does not personally service.

803-378-5208
mailto:info@JohnKneece.com

FHA wants to insure zero-down mortgages
By Holden Lewis (An expert I rely upon)

Zero-down home loans have gone so mainstream that the federal government wants to get into the act.

Borrowers would be able to take out no-money-down mortgages insured by the Federal Housing Administration under a proposal by the housing department. Right now, FHA-insured loans are limited to a maximum of 97 percent of the home's price, meaning that homeowners have to come up with a 3 percent down payment.

FHA-insured, zero-down loans won't be available until October at the earliest, because the proposal will be included in the Department of Housing and Urban Development's fiscal 2005 budget proposal. The fiscal year begins Oct. 1. Allowing zero-down, FHA-insured mortgages would require congressional approval.

Under the proposal, home buyers not only would be able to get FHA-insured loans with no money down, but they could roll some closing costs into the loan. The maximum loan size, then, would be 103 percent of the home's price.
Help for first-time buyersThe proposed change would remove the biggest obstacle facing first-time home buyers, says John Weicher, the federal housing commissioner. "This initiative would not only address a major hurdle to homeownership and allow many renters to afford their own home, it would help these families build wealth and become true stakeholders in their communities," Weicher says.

The Bush administration has a goal to create 5.5 million new minority homeowners by 2010. The FHA estimates that the zero-down option would generate 150,000 new homeowners in the first year.

Not many years ago, zero-down loans for consumers were rare. Later, they were a fringe product. They are riskier for lenders because zero-down borrowers are deemed more likely to default, and when they do default, the lender is more likely to lose money. But as mainstream mortgage lenders have found that they can make money by lending to shaky borrowers at high rates, zero-down loans have become widely available. Now, under HUD's proposal, lenders would be able to offer zero-down loans and let the FHA insurance pool assume the risk. The insurance pool is funded by borrowers, not by taxpayers.

How they would workFHA borrowers would pay more, both upfront and monthly, for the privilege of not making a down payment. Today, if a home buyer makes a 3 percent down payment and gets an FHA-insured mortgage, the buyer pays an upfront mortgage insurance premium of 1.5 percent at closing, and half a percentage point is tacked onto the interest rate. Under the proposal, a riskier zero-down loan would incur a mortgage insurance premium of 2.25 percent at closing, and three-quarters of a percentage point would be added to the interest rate for the first five years of the loan. After five years, the interest rate would be reduced by one-quarter point.

It would mean slightly higher payments for zero-down borrowers. Consider the case of Jack, who puts 3 percent down and borrows $100,000, and Jill, who gets a zero-down loan for $100,000. Both get their loans when mortgage rates average 6 percent for people with good credit who put 20 percent down.

Jack would pay a $1,500 insurance premium as part of his closing costs. He would pay 6.5 percent interest, for monthly payments (principal and interest) of $632.07. Jill would pay a $2,250 insurance premium as part of closing costs (or $750 more than Jack) and would pay 6.75 percent interest, for monthly payments of $648.60 ($16 more than Jack's monthly payment). After five years, her monthly principal and interest would drop to $632.07, the same as Jack pays.Jill could add the upfront mortgage insurance premium to the loan amount, borrowing $102,250; that would raise her initial monthly principal and interest payments to $663.19, or $31 more than Jack's monthly payment.

Potential effect on private lendersBy offering zero-down loans, the FHA would be stepping onto the turf of the down-payment assistance industry, with unpredictable results. The down-payment assistance industry consists of nonprofit corporations that allow home buyers to leap through a loophole and circumvent the FHA's requirement to make a 3 percent down payment. The loophole can be found in a rule that lets FHA borrowers receive gifts of money with which to make down payments or pay closing costs.

Gift money can come from relatives, employers and nonprofit organizations. It can't come directly from sellers. But sellers can contribute money to nonprofits that then pass along the money in the form of gifts to home buyers. A thriving network of nonprofits -- among them Ameridream and Nehemiah Corp. of America -- takes advantage of this loophole and allows home buyers to get FHA mortgages with no out-of-pocket money down.

HUD jumps through the loophole

HUD tried to close the loophole a few years ago but backed off. Now it appears that the federal government has gone full circle. "It's a pure vindication of Nehemiah's pioneering down-payment assistance," says Scott Syphax, president of Nehemiah.
"Understand that when we first started, the work that we do was seen as being completely outside the mainstream," Syphax adds. "Government's adoption of the Nehemiah approach to homeownership is the purest evidence that our position not only has been vindicated, but also embraced."

He calls the FHA proposal "a very important step in democratizing the access to homeownership in this country" and that Nehemiah supports the proposal, "and, however, is going to be very watchful on making sure that the details are not onerous to the families that the program is intended to serve."

By Dennis Quick
SC World Trader

ECKA Granules of America, a German company that manufactures pure metallic powders used in everything from paints to automobile parts, two months ago arrived in Orangeburg County/City Industrial Park. The company invested about $12 million in a 67,000-square-foot facility, which over the next five years will employ 40 workers. Wages will be $10 to $12 an hour.

ECKA checked out a few other states, including North Carolina and Texas, before choosing South Carolina as the site for its first production center in North America.
“South Carolina has a strong connection with German companies,” notes Dean Swift, project manager for ECKA Granules of America.
Indeed, the Palmetto State boasts a roster of more than 140 German companies, including heavy-hitters like BMW and Robert Bosch Corp.

By choosing to set up shop in Orangeburg County, ECKA enjoys not only nearness to the port of Charleston, a logistical must-have that scored key points with ECKA, but a certain comfort knowing a host of other foreign companies call Orangeburg County home.
Orangeburg County, population 92,167, could be considered the nation’s international business capital for geographic areas its size.
“Per capita, Orangeburg County has close to the largest amount of foreign investment in the nation,” claims Gregg Robinson, executive director of the Orangeburg County Development Commission.

National real estate network makes listings more 'discoverable' and 'searchable' online with Google Base

RISMEDIA, August 4, 2006—

ERA Real Estate has announced that it has begun providing all of its residential property listings nationwide to Google Base, a service that enables content providers to submit information to Google to improve the quality and breadth of Google's online search results. By providing its listings to Google Base, ERA Real Estate helps make its home sellers' listings more searchable online. Google Base offers content providers such as ERA Real Estate the ability to provide property-specific attributes therefore increasing the chance that an ERA(R) listing will appear in the results of relevant queries. Based on the relevance match, a listing may also appear in search results on Google, Froogle and Google Maps. "A large majority of today's real estate consumers are starting their home search online, but they are getting to this information in a number of different ways," said Brenda W. Casserly, president and CEO for ERA Real Estate. "By working with the Internet search leader, Google, we have created another important online marketing venue that, in addition to our brand Web site, will generate exposure for our affiliates and their listings." Online home shoppers can now find the ERA listing information on Google that precisely matches their home search needs and preferences. From their search results, they can then link to ERA.com to access additional property information, contact a sales associate or utilize other real estate related resources on the Web site. "As a company founded on technology, ERA Real Estate is committed to utilizing the Internet to provide the best service possible to both our affiliates and the homebuyers and sellers they serve," said Casserly. "Working with Google is just the latest example of our ongoing effort to maximize the power of the Internet to help our affiliate brokers and sales professionals best market their clients' properties." ERA Franchise Systems, Inc. is a subsidiary of Realogy Corporation, the world's largest real estate franchisor (NYSE: H). ERA(R) information is available to consumers at ERA.com.

JOHN KNEECE ERA Wilder Realty1995 Saint Matthews Road Orangeburg, SC 29118www.OrangeburgHomes.com

(I have agents in Columbia, NE Columbia, Irmo, Lexington, Chapin, Sumter, Lake Norman, Charlotte, Manning, and Santee)

mailto:info@JohnKneece.com 803-378-52081-866-419-7539 (Toll Free)

Orangeburg, SC (29115) Demographics

General
Pop. of 29115
33,141
Pop. living in urban areas
0
Pop. living in suburban areas
22,689
Pop. living in farm areas
285
Pop. living in non-farm areas
10,167
Avg Household Income
$27,382
Per Capita Income
$13,592
Avg House Value
$67,000
Population Breakdown by Age
Ages under 5
2,247
Ages 5 to 9
2,106
Ages 10 to 14
2,320
Ages 15 to 17
1,392
Ages 18 to 19
1,977
Age 20
1,010
Age 21
930
Ages 22 to 24
1,968
Ages 25 to 29
2,211
Ages 30 to 34
1,623
Ages 35 to 39
2,317
Ages 40 to 44
2,149
Ages 45 to 49
1,968
Ages 50 to 54
1,776
Ages 55 to 59
1,322
Ages 60 to 61
458
Ages 62 to 64
800
Ages 65 to 66
464
Ages 67 to 69
626
Ages 70 to 74
1,158
Ages 75 to 79
841
Ages 80 to 84
730
Ages over 85
748
Population Breakdown by Education
Less than 9th grade education
1,993
Between 9th and 12th grade education
4,420
High School education
6,855
Some College education
6,245
Hold an Associates Degree
1,336
Hold Bachelors Degree
2,554
Hold Professional Degree
1,673
29115 County Information
County Name
Orangeburg
State Name
South Carolina
Population
91,582
Number of households
34,118
Persons per household
2.68
Elevation
245
Area
1,106
Average Household Income
$27,611
Average Housing Value
$50,400