Jack Sternberg

    Jack Sternberg's Articles

    • 5 Basics Terms Of Real Estate Seller Notes

      Over at Noteworthy.com Jon Richards and Clint Hinman really work with me in educating Real Estate Investors about Notes, Mortgage Paper, Liens and an assortment of financing instruments that make real estate investors money or gets them into a deal.Whenever any person, partnership, trust, corporation or any other entity becomes a lender on a piece of real property, a promissory note is created. You became a lender when you sold your real estate and carried back a note.5 Basics Terms of Seller Carry Back NotesThe Promissory NoteA promissory note is a written promise to pay a certain amount of money,…

    • 84 U.S. Real Estate Markets Improving Summer 2012

      Where economic growth goes, housing growth often follows.That’s why it’s good news for homeowners that 84 U.S. metropolitan areas are showing “measurable and sustained growth” this month, according to the National Association of Homebuilders’ Improving Market Index.The Improving Market Index is a derivative report, based on the results of three separate data series which examine a city’s local economy.The data series used in the IMI are :Employment data from the Bureau of Labor StatisticsHome price data from Freddie MacOne-unit building permits from the Census BureauThe NAHB compiles this data monthly, assigning a given metropolitan area the label “improving” if the…

    • Revisiting Housing Market Predictions For 2012

      When the calendar flips to a new year, analysts and economists like to make predictions for the year ahead.So, today, with the year half-complete, it’s an opportune time to check back to see how the experts’ predictions are faring (so far).If you’ll remember, when 2011 closed, the housing market was showing its first signs of a reboot. Home sales were strong, home supplies were nearing bull market levels, and buyer activity was strong.Homebuilder confidence was at its highest point in 2 years and single-family housing starts had made its biggest one-month gain since 2009.In addition, 30-year fixed rate mortgage rates had…

    • Lock Your Mortgage Rate: New Loan Fees Expected in Early 2012

      Starting soon, nearly all real estate investors taking out new loans or refinancing current loans, home buyers and refinancing households nationwide will pay higher mortgage loan fees. Congress has made it law.13 months ago, as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Congress enacted a one-year cut to FICA payroll taxes.FICA stands for Federal Insurance Contributions Act. Taxes collected under FICA fund such programs as Social Security and Medicare.The stimulus plan temporarily lowered tax rates for salaried workers from 6.2% to 4.2%; and for self-employed persons from 12.4% to 10.4%. Effective January 1,…

    • Applying For A Mortgage Soon? Don’t Open New Credit Cards For Valentine’s Day..

      Valentine’s Day is just two short weeks away.Sales are expected to top $17.6 billion this year and, already, businesses are vying for shoppers and their dollars. Newspaper circulars are getting larger, and in-store discounting is more prevalent.But one discount that shoppers should think twice about is the popular “Open A Charge Card, Save 20%” promotion. The short-term savings may be tempting, but the long-term costs may be huge.It’s because of how credit scores work.According to myFICO.com, “new credit” accounts for 85 out of 850 possible credit scoring points, with new credit defined by such traits as:Number of recently opened accountsNumber…

    • An Introduction To Real Estate Commercial Loan Documentation

      The financial stakes are much higher when you’re dealing with commercial investments rather than residential investments. With such deals, the rewards are greater, but the risk is also. So, it will pay you to understand completely the terms and wording of commercial loan documents.In this blog post, I’ll provide you with the necessary knowledge of the basic loan forms and language.First, however, you should understand the types of lenders you’ll be dealing with in this market.Mortgage Bankers are the type that represents most commercial lenders. They work on behalf of a fixed number of lenders and usually have a long-standing…

    • What Is Annual Percentage Rate (APR)?

      More commonly called APR, Annual Percentage Rate is a government-mandated mortgage comparison tool. It measures the total cost of borrowing over the life of a loan into dollars-and-cents.A loan’s APR is printed in the top-left corner of the Federal Truth-In-Lending Disclosure, as shown above. When quoting an interest rate, loan officers are required by law to disclose a loan’s APR, too.APR is meant to simplify the process of choosing between two or more loans. The theory is that the loan with the lowest APR is the “best deal” for the applicant because the loan’s long-term costs are lowest. However, the loan…

    • Congress Expands And Extends The First-Time Home Buyer Tax Credit

      Congress both extended and expanded the First-Time Home Buyer Tax Credit program Thursday.The White House says the President will sign it into law today.The up-to-$8000 tax credit’s expiration date has been pushed forward to spring, requiring homebuyers to be under contract by April 30, 2010, and to be closed by June 30, 2010.The program’s basic eligibility requirements remain the same:Buyers can’t purchase the home from a parent, spouse, or childBuyers can’t purchase the home from an entity in which they’re a majority ownerBuyers can’t acquire the home by gift or inheritanceAll parties to the purchase must meet eligibility requirementsThe new law includes some notable…

    • Banks Raise Mortgage Standards

      Despite the economy’s improvement and prodding from Congress, banks don’t seem ready to open their purse strings just yet.Nationally, mortgage approval standards are tightening.The data comes from a quarterly survey the Federal Reserve sends to its member banks. The Fed asks senior bank loan officers around the country whether “prime” residential mortgage guidelines had tightened in the last 3 months.For the period July-September 2009:Roughly 1 in 4 banks said guidelines tightenedRoughly 3 in 4 banks said guidelines were “basically unchanged”Just one bank said its guidelines had loosened.Combine the Fed’s survey with recent underwriting updates from FHA and from Fannie Mae and it becomes clear…

    • Simple Real Estate Definitions : APR

      APR is an acronym for Annual Percentage Rate.It’s a government-mandated calculation meant to simplify the comparison of mortgage options. A loan’s APR can always be found in the top-left corner of the Federal Truth-In-Lending Disclosure.Because APR is expressed as a percentage, many people confuse it for the loan’s interest rate. It’s not. APR represents the total cost of borrowing over the life of a loan. “Interest rate” is the basis for monthly mortgage repayments.The main advantage of APR is that it allows an “apples-to-apples” comparison between loan products. As an example, a 5.000 percent mortgage with origination points and fees…

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