Thursday, June 13, 2013

Should You Get a Reverse Mortgage?

You can't turn on the TV these days without seeing some worn out actor or former politician pitching reverse mortgages as if they they are a great deal for seniors. Well, maybe.

Some big lenders have pulled out of the reverse mortgage business--Wells Fargo and Bank of American, but plenty of other lenders remain, so if you want one, you'll have no trouble finding a lender.  Why? Because they are highly profitable for the lender, but perhaps not such a good deal for the borrower; they have steep up front fees.

Only get one if you:

  • Have equity in your home and no way of paying your bills other than selling your home and living on the proceeds
  • Can pay the property taxes and home owners insurance bills from now until you die with or without the money you're getting from the reverse mortgage.
With a reverse mortgage, only available to those 62 years young, you get to cash out most of your equity and keep your house.  The bank pays you the value of your house either in a lump sum or fixed monthly payments both of which are based on formulae taking into account your home's current value, current interest rates and your age.

Since you don't pay back a reverse mortgage, you don't have to prove income--the reverse mortgage is your future income.  If you take the lump sum and spend it, you get to stay until you die, but if you don't pay your property taxes the bank will and then they'll foreclose.  If you don't pay your insurance, the bank will buy a policy for you and expect you to pay for it, but if you can't, the bank will seek permission from HUD to foreclose.

So before you sign up for a reverse mortgage, make sure you'll be able to pay your property taxes and insurance in the future and allow for inflation, as they always go up, not down.  Here, along the South Carolina coast, expect substantial increase in windstorm and flood insurance.

A reverse mortgage can be a blessing if your retirement income isn't enough, just be sure you can always pay your taxes and insurance no matter what.

Tuesday, June 11, 2013

Georgetown & Pawleys Island Benefit Golf Tournament


The Georgetown/Pawleys Island Elks Lodge #900 is sponsoring a Benefit Golf Tournament for the Smith Clinic of Pawleys Island organized by the Heritage Plantation Golf Club on July 20th.  Start time 8:30AM, $60 per person.  Call 843-235-9435 or 843-455-8496 to reserve your place.

The Smith Medical Clinic, Pawleys Island at Baskerville is an outreach of Holy Cross Faith Memorial Episcopal Church and exists to meet the medical needs, free of charge, of indigent individuals and families in Georgetown County.

Monday, June 10, 2013

Current Mortgage Rates for Grand Strand Borrowers

Here's what one local lender is offering, but always shop around:

30yr fixed 4.125% purchase; 4.375% refinance
20 yr fixed 3.875% purchase; 4.125% refinance
15 yr fixed 3.25% purchase; 3.50% refinance
10 yr fixed 3.00% purchase; 3.25% refinance

Mortgage Interest Rates Move Higher


According to the Mortgage Bankers Association, for the week ended May 31st, the average contract interest rate for a 30 year fixed rate mortgage was 4.07% the highest since April 2012.  

Sunday, June 9, 2013

Don't Strip the Neck!

This sums up the highway proposal....
A citizens' coalition has formed to force public dialogue on the proposals to modify the median of Highway 17 in the Pawley's Island business district.  In short, the plan calls for 1.8 miles of a raised median with 17 breaks for U turns--this is going to make traffic better?  You got to be kidding me!

Details:
  • The current revised plan is NOT a highway beautification project and will have NO landscaping.
  • An unattractive 4-5 foot wide concrete median will appear in much of the 1.8 mile project.
  • Seventeen (17) U-Turns will replace ALL left turns – requiring vehicles to cross over two lanes of oncoming traffic to get to the U-Turn lane on the opposite side of the highway and then vehicles must merge back into traffic with NO acceleration lanes.
  • Access to major connector streets will be limited – streets such as Professional Land, Tiller Drive, Parkersville Road and Archer Road.
  • Emergency vehicles and large trucks WILL NOT be able to make most U-Turns. Many heavy trucks will be forced to go through Petigu & Martin Luther King Road residential areas.
  • The project will have MAJOR ECONOMIC IMPACT on landowners and businesses.
  • Most businesses cannot be accessed from the opposite side of Highway 17.
  • This project will lead to more strip development.
Two upcoming meetings: 

County Council -- June 11 at  5:30PM at the Old Courthouse, Georgetown,

HWY 17 Project Information Meeting -- June 20 at 7PM at Waccamaw High School Auditorium, Pawley's Island

For more information:  www.dontstriptheneck.org

Wine Tasting at Brookreen Gardens



The Friends of Brookgreen Gardens will host a wine tasting in the Live Oak Allee, Saturday, June 15, from 5:30 to 8 PM.  An annual fundraiser, the wine tasting and silent auction, promises a casual evening's enjoyment.  Tickets are $65 (Members $50) and reservations are required--call 843-235-6016. 

Farmers' Markets in the Grand Strand

Think the produce at your local supermarket looks a little tired?  Try some of these farmers'  markets:

Surfside Beach -- Tuesdays -- 10AM to 3PM at the corner of Surfside Drive and Poplar Street

Deville Street -- Saturdays -- 10AM to 2PM  at the Market Common

Conway -- Saturday -- 8AM to 1PM  at 217 Laurel Street

Pawley's Island -- Wednesdays -- 9AM to 1PM at Parkersville Park

North Myrtle Beach -- Wednesday, Friday and Saturday 9AM to 6PM at corner of Oak and Joe White


Brookgreen Gardens History Project



Former residents, descendants and workers of the plantations that now make up Brookgreen Gardens are invited to share their Gullah Geechee experiences and memories with interns of the B. N. Duke Scholars Program of Duke University at Durham, NC. The plantations are Brookgreen, Laurel Hill, Springfield and The Oaks. The Gullah Geechee Cultural Heritage Corridor Commission has partnered with Duke in a two year community outreach; information gathered will help understand the Gullah Geechee culture of Georgetown County.  The interviews will be on June 22 and 27 and July 11 and 13; to sign up call 843-235-6049.

Saturday, June 8, 2013

Flay Day, Georgetown



There will be a Retirement of Flag Service at Morgan Park in Georgetown on Flay Day, June 14, sponsored by the DAR, Daughters of the American Revolution.  Used Flags, no longer suitable of use, can be dropped off at the Georgetown County Chamber of Commerce on Front Street.  The Ceremony is at 10 AM.

Thursday, June 6, 2013

Home Improvements That Hurt Resale

1. Elaborate  landscaping or gardens

You may have a green thumb and be proud of the time you spent on the garden, the hedges or landscaping. But the next buyer might see it as too much maintenance. Potential buyers may not be willing to pay for it, hire a gardener or do the work themselves. This is especially true with Millennials and Gen X-ers. Certainly your property must have great curb appeal and nice landscaping does sell, but quick and inexpensive improvements to your yard may be all you need--consider hiring a lawn service for a one time going over and add a few flowering plants from a garden shop. 
2. Converting a garage into a family room
This may make sense if you have a large family the will actually use a family room, but be careful the renovation isn't done too late--children at college or on their own  won't use it. When it comes time to sell a garage is expected, especially in the suburbs, if you take it out, you've lost many buyers. Solution: Perhaps minor changes, that can easily be are is all you need--clear out the clutter, paint the floor, walls and inside of the garage door and remove and store the door opener.  Add a large area rug, new light fixtures a window AC with heat--what more do you need?  All this can be easily removed when it comes time to sell.

3. Taking out a bedroom

These days homeowners often transform a bedroom into a huge master closet or into a home office.If you do, make sure the room can be easily turned put back when you sell, no built-in desk and cabinet. . Buyers with kids may need that bedroom. They’ll see the room you converted into a home office or closet as more money they’ll need to spend to turn it back into a bedroom.
To convert a bedroom into, you'll probably want direct access from the master bedroom, which  may include taking out a door and putting up walls. Settle for storing your out of season clothing in the existing bedroom's closet and donate what you don't wear to a thrift store. Once you move your seasonal clothes and cleaned out the stuff you haven't worn in the last several years, you'll have plenty of room.

4. Adding a swimming pool

Same as fancy landscaping; a pool requires maintenance and is an even bigger liability. If you’re in the South, a pool may make sense, especially if they're common in your neighborhood. Think twice if you're in the Northeast, you'll have to heat the pool most of the time and prep it for winter. Join your local Family Y with a pool, instead.
5. Adding personalized colors, finishes or fixtures
Often, homeowners put in tile, sinks, vanities, counter tops and floor coverings specific to their tastes that are hard to replace. For example, you love the Italian tile from your  vacation last year and want it in your kitchen; have it made into a coffee table instead. Stick to neutral colors for permanent improvements; if you spent big bucks on upgrades, your home's value when you need to sell, may not reflect the expense. Some inexpensive improvements are always good--chair railings, crown moldings and an upgraded front door, for example. Be careful you don't turn off buyers who don’t like your taste and don’t want the hassle to undo your changes. Decorate to your taste with furniture and accessories that you can take with you and use in your new home.  If they are highly personal, ask your agent if they should go into storage be showing, so prospective buyers can easily view themselves in your home.

Wednesday, June 5, 2013

Housing Recovery Picks Up Speed

The housing recovery has picked up speed, as home prices posted their highest year-over-year gain since February 2006, according to the latest housing data from CoreLogic. 
CoreLogic's home price index climbed 12.1 percent in April over year-ago levels. Home prices have been on the rise for more than a year. 
"The pace of the housing market recovery quickened in April as home prices rose across the U.S.," says Anand Nallathambi, CoreLogic's chief executive officer. "We expect this trend to continue, bolstered by tight supplies and pent-up buyer demand."
CoreLogic economists predict home prices will rise another 2.7 percent in May. 
The following five states had the largest price gains over the past year: 
  • Nevada: +24.6%
  • California: +19.4%
  • Arizona: +17.3%
  • Hawaii: +17%
  • Oregon: +15.5%
Will this trend continue, yes, but almost certainly not at this pace.  

Financing and re-financing remain difficult for most buyers, new construction is ramping up and sellers who had postponed selling are not listing their houses; these factors and others will pressure further price increases.

And, let's learn from experience, it prices do continue to increase at these levels, what's that called?  A BUBBLE.  What the nation needs to see is steady increase in housing prices, matching the the rate of inflation or a little more.