The Atlanta Condo Loft » Mortgage Financing

Fannie Mae: Loan Level Price Adjustments

Ursula Henry — Fri, 23 Jan 2009 19:00:03 +0000

If you’re thinking about buying a condo, and waiting until prices come down further, you might want to think about that a bit. Fannie Mae announced in December that effective April 1, a new Loan Level Price Adjustment (LLPA) would apply to condo and co-op loans. The grids can be found here. Now what does that mean for you, the Atlanta Condo buyer? It means that even if you have a great credit score, if you have less than a 25% down payment, you are going to be charged a fee of up to .75%. Basically, if you have a $300,000 condo, and you have a $240,000 mortgage (20% down), if Fannie purchases your loan from your lender, they will charge you a fee of $1800. Now that may not be enough to keep you from buying that condo. But it sure does not help this already pressured market to have additional closing costs. You may not see this fee at closing – it might be folded into your mortgage rate. That could result in a raise of the interest rate a half point or more. So while the Fed is lowering rates, this action by Fannie Mae offsets those reductions for condo buyers, even for those with great credit. So what can I advise you to do? Buy now and avoid the hit, or buy later, and take the hit, hoping for even lower prices? I really cannot advise you on either of those questions, as it depends on your individual needs as a buyer and homeowner. But here is what I can advise you: 1. Work with a qualified mortgage professional, and know your monthly payment and closing costs up front. Make your decisions based on what works best for you in the current environment, and how your needs are best met. 2. Clean up your credit if it needs some adjustment. These fees are tied to credit score – and the lower your score, the higher the fee. 3. Let me know your needs and what you truly desire in Atlanta condo living – and I will assist you in a realistic search for the purchase of a home that you can definitely close on at a price you can afford.

Now what does that mean for you, the Atlanta Condo buyer?

It means that even if you have a great credit score, if you have less than a 25% down payment, you are going to be charged a fee of up to .75%. Basically, if you have a $300,000 condo, and you have a $240,000 mortgage (20% down), if Fannie purchases your loan from your lender, they will charge you a fee of $1800.

Now that may not be enough to keep you from buying that condo. But it sure does not help this already pressured market to have additional closing costs.

You may not see this fee at closing – it might be folded into your mortgage rate. That could result in a raise of the interest rate a half point or more. So while the Fed is lowering rates, this action by Fannie Mae offsets those reductions for condo buyers, even for those with great credit.

So what can I advise you to do? Buy now and avoid the hit, or buy later, and take the hit, hoping for even lower prices? I really cannot advise you on either of those questions, as it depends on your individual needs as a buyer and homeowner. But here is what I can advise you:

1. Work with a qualified mortgage professional, and know your monthly payment and closing costs up front. Make your decisions based on what works best for you in the current environment, and how your needs are best met.

2. Clean up your credit if it needs some adjustment. These fees are tied to credit score – and the lower your score, the higher the fee.

3. Let me know your needs and what you truly desire in Atlanta condo living – and I will assist you in a realistic search for the purchase of a home that you can definitely close on at a price you can afford.

CondoDomain Whitepaper: Year 1

Erica Farthing — Thu, 22 Jan 2009 09:39:55 +0000

Putting this Whitepaper together was almost as exciting as engaging in the real estate brokerage community this year. For all of you who have followed us through social media and our blogging efforts… and for all of you who have met us or become a client of ours: you all know we like to have fun along the way! Well, while all of that fun that is publicly displayed, there is actually quite a bit of work that went on behind the scenes. I believe that this CondoDomain Year 1 Review reveals our true colors. What will you find in this report? i. Transactional Data / Commission Refunds ii. Negotiation Advantage iii. Demographics iv. Customer Satisfaction v. Why CondoDomain vi. 2009 Corporate Forecast Heck, its short enough….check it out. Like Redfin’s similar real estate annual reviews, Ill let the statistics do the talking. Congratulations to all of our team members here at CondoDomain for an outstanding 2008 and congratulations to all of our new clients and friends of the firm. 2009 is set to be an even bigger year. DOWNLOAD THE 2008 ANNUAL REPORT

Well, while all of that fun that is publicly displayed, there is actually quite a bit of work that went on behind the scenes. I believe that this CondoDomain Year 1 Review reveals our true colors.

What will you find in this report?

i. Transactional Data / Commission Refunds
ii. Negotiation Advantage
iii. Demographics
iv. Customer Satisfaction
v. Why CondoDomain
vi. 2009 Corporate Forecast

Heck, its short enough….check it out.

Like Redfin’s similar real estate annual reviews, Ill let the statistics do the talking.

Congratulations to all of our team members here at CondoDomain for an outstanding 2008 and congratulations to all of our new clients and friends of the firm.

2009 is set to be an even bigger year.

DOWNLOAD THE 2008 ANNUAL REPORT

The Atlanta Condo & Loft Blog Goes Live

Erica Farthing — Tue, 08 Jul 2008 18:52:11 +0000

In anticipation for the all new CondoDomain Atlanta search portal, we have pushed our local blog live! In the coming months we plan to release CondoDomain Atlanta and begin working with buyers looking to purchase in downtown Atlanta, GA! If you want to get a feel for what our site will be like in Atlanta, GA, please feel free to check out our Boston site. Why Buy With CondoDomain? 1. We are exclusive buyers brokers! We only do 1 thing…and we do it very well! 2. Condos! Its what we know! Its what we do! 3. Flat Fee! We run an efficient business that benefits YOU, not a commission based agency that is compensated when you spend more! Our average client receives more than a $13,000 refund back at closing… We’re Hiring! If you are interested in learning more about the company please write us or check out our Facebook Group here. About CondoDomain.com LLC CondoDomain.com is a web-based real estate brokerage based in Boston, MA. The company is expanding nationwide to offer its buyers’ brokerage services in more than 30 cities around the U.S. Currently operating in Boston, CondoDomain offers an innovative flat-fee business model allowing the majority of the commission to be refunded to the buyer. By combining up-to-date MLS feeds, new construction buildings, FSBO, Foreclosures, Lofts and Auction listings all on one site, CondoDomain has become one of the most popular and user friendly real estate websites available. CondoDomain.com offers a 100% satisfaction guarantee to all of its clients, ensuring a professional, efficient, and pleasant transaction. Visit www.CondoDomain.com for more information or feel free to dive into our blogs at www.CondoDomain.com/blog. For more information, please contact Erica Farthing at (877) 852-6636.

Why Buy With CondoDomain?

1. We are exclusive buyers brokers! We only do 1 thing…and we do it very well!

2. Condos! Its what we know! Its what we do!

3. Flat Fee! We run an efficient business that benefits YOU, not a commission based agency that is compensated when you spend more!

Our average client receives more than a $13,000 refund back at closing…

We’re Hiring!

If you are interested in learning more about the company please write us or check out our Facebook Group here.

About CondoDomain.com LLC

CondoDomain.com is a web-based real estate brokerage based in Boston, MA. The company is expanding nationwide to offer its buyers’ brokerage services in more than 30 cities around the U.S. Currently operating in Boston, CondoDomain offers an innovative flat-fee business model allowing the majority of the commission to be refunded to the buyer. By combining up-to-date MLS feeds, new construction buildings, FSBO, Foreclosures, Lofts and Auction listings all on one site, CondoDomain has become one of the most popular and user friendly real estate websites available. CondoDomain.com offers a 100% satisfaction guarantee to all of its clients, ensuring a professional, efficient, and pleasant transaction. Visit www.CondoDomain.com for more information or feel free to dive into our blogs at www.CondoDomain.com/blog.

For more information, please contact Erica Farthing at (877) 852-6636.