Mortgage Broker Versus Mortgage Lender: Which One Is Right for You?

When you're ready to get a mortgage, you face a dizzying array of choices: Fixed rate or variable? Points or no points? Mortgage broker or mortgage lender?
That last decision - mortgage broker or mortgage lender - involves a simple but easily misunderstood distinction.
Simply put, a mortgage broker is an independent professional who can shop around to find deals from a variety of lenders. A mortgage lender is represented by a loan officer who can speak only for that institution's product line.
What does that mean for the borrower? As a practical matter, a mortgage broker can present you loan packages from multiple lenders - for instance, Wells Fargo, Chase and Quicken Loans. The loan officer from Wells Fargo, on the other hand, can pitch only Wells Fargo mortgages.
The advantages of dealing with a lender include reliability and reputation. With a broker, you have greater flexibility. Based on your financial profile, the broker may also line you up with a lender where you're most likely to qualify for the loan.

When in doubt, comparison shop

So, which one should you use? There's no clear answer, says Eric Tyson, author of Personal Finance for Dummies and co-author of Mortgages for Dummies.
"I've seen people be happy using either option," Tyson says. "The important thing is to shop around."
Tyson suggests soliciting loan packages from a mortgage broker and a couple of mortgage lenders, then judging which proposal offers the best deal based on rates and fees.
In the end, whether to use a mortgage broker or mortgage lender depends in part on your finances. If you have stellar credit and steady income and you're shopping for a plain-vanilla loan, mortgage rates and loan fees are unlikely to vary much from one lender to the next.

If, on the other hand, you have spotty credit, you're self-employed or you have an otherwise-tricky profile as a borrower, you may find the number of mortgage lenders willing to do business with you is more limited. In that case, it can be more convenient to use a mortgage broker. After all, they make a living from their knowledge of various loan products.

Laws offer protection

Unfortunately, the image of both mortgage brokers and mortgage lenders was tarred by a minority of unethical practitioners who built an unsavory reputation for themselves during the housing bubble. The movie The Big Short, based on author Michael Lewis's expose on the U.S. mortgage meltdown of 2005, portrayed greedy mortgage brokers going so far as to target exotic dancers with bad loans. In another example, The Miami Herald reported in 2008 that thousands of convicted criminals were given mortgage broker licenses by the state of Florida. Not to be outdone, many mortgage lenders offered a menu of high-fee, high-risk loans.
Those excesses have largely gone away, however. The Consumer Financial Protection Bureau, created in 2010 to ride herd on the mortgage industry, released guidelines in 2014 that included a ban on "steering" - that is, on financial incentives for loan officers to push you into a loan you can't afford. Lenders have stopped offering some of the risky loans that drove the housing bubble, and mortgage lenders and brokers operate under heightened levels of scrutiny and disclosure.

Tipping the negotiation in your favor

Whether you opt for a mortgage broker or a mortgage lender, the paperwork burden will be similar. Both will run a credit check, and both will ask for tax returns, pay stubs, bank balances and other information required for the lender's underwriting process.
But payments for brokers and lenders are different, and understanding how the broker or loan officer is paid may help you land a better deal. Mortgage brokers are typically paid a commission by the lender - usually 1 percent to 2 percent of the amount of the loan. For loan officers at banks, compensation models vary. They might be paid a commission, but they typically collect a salary plus bonus.
To win your business, a mortgage broker might be willing to negotiate his fee, Tyson says. And the larger your loan, the more negotiating power you have.

A veteran business journalist, Jeff Ostrowski writes about money for The Palm Beach Post in Florida and writes about mortgages for MoneyGeek.com. Ostrowski has written hundreds of news and feature stories about property loans and the housing market.

Written by Jeff Ostrowski

Nancy M. Alexander Stone Harbor and Avalon NJ Real Estate, Long & Foster Avalon

Up Your Present Game With Great Gifts That Give Back

Deciding on the right gifts for loved-ones is even more challenging than perfecting a lump-free gravy at the holidays. You could stick with the same-old ties and massages and gift cards, or you could do something a little different, and a little more meaningful, this time around. This year, give a gift that gives back, and make it rewarding for everyone.
A gift that gives back is one that helps a charity, a worthy cause, or otherwise benefits the less fortunate, to "satisfy your pickiest relatives but also benefit a nonprofit or other worthy initiative," said Architectural Digest. "So when you're searching for the perfect token for Christmas, Hanukkah, your holiday party host, or just because, think of spreading the cheer just a little bit further."
Here is a roundup of our favorite grateful gifts this year:
These fun tea towels from West Elm "feature illustrations of Barkley Sir Charles, Brimley the Cat, and others," said Architectural Digest. They cost $10 each, and "For each towel sold, the company will donate $1 to the ASPCA."

West Elm
We love being able to give jewelry to members of our family. These $24 Dusk Earrings from Purpose Jewelry are not only beautiful with their teardrop shape and hand-tooled crystal beading, but they were also crafted by women in India, with 100% of the proceeds going to benefit International Sanctuary, "a nonprofit that provides holistic care for young women rescued from sex trafficking," said The Good Trade.

Purpose Jewelry
BIRD + STONE makes and sells beautiful jewelry for men and women and children that helps women fight poverty around the world. We love this GIRL UP BRACELET; for every purchase of the $25 bracelet, Bird + Stone gives $3 to "help girls around the world access education and become leaders in their communities."

BIRD + STONE
If your favorite gift to give is a candle, you'll love The Starling Project, a new line of home candles that "provides under-resourced countries with solar energy," said Travel and Leisure. "That's a pretty big deal, considering nearly 1.3 billion people don't have access to electricity." This Orange Flower and Amber Candle is $55.


The Starling Project Preparing your holiday meal is serious business, but you can still make the process fun with these No Kid Hungry® Chef Series Silicone Spatulas from Williams-Sonoma. Choose from a bunch of $13 celebrity-designed spatulas including Chef Ina Garten, Chrissy Teigen, and Jimmy Kimmel, with purchases helping to end child hunger through non-profit No Kid Hungry.

Williams-Sonoma
You can feel great about purchasing a beautiful gift like this $58 Artisan Root vase from eco-conscious company Bambeco, knowing that they have "partnered with American Forests to plant one tree for every gift sold this season," said Architectural Digest.


Architectural Digest
Useful, thoughtful, and charitable—that's the best kind of gift. These Mexican Hand-Blown Beer Glasses from UNICEF Market are perfect for craft beer aficionados, and when you buy them, you'll help vaccinate as many as 97 children against polio. The cost: $77.99 for a set of six.


UNICEF Market
Thinking about getting clothing for some of the people in your life and want to browse through some charitable options? Sevenly is a website that "partners with a different non-profit organization each week, creating and selling art and other limited edition products to raise funds and awareness for several causes," said Inc. "Sevenly also features products that give to charities such as Autism Speaks and the U.N. Foundation."


Sevenly Body care gifts are always a favorite, and LUSH's handmade cosmetics make going this route even more inspired. Their Charity Pot Body Lotion "has a delicately floral perfume of ylang ylang and rosewood oils in a hydrating cocoa butter base," they said, with "seven ingredients sourced from our sustainable SLush Fund projects around the world." The best part: 100% of the purchase price (minus the taxes) is donated to small, grassroots organizations working in the areas of environmental conservation, animal welfare and human rights."


LUSH
Written by Jaymi Naciri




Nancy M. Alexander Stone Harbor and Avalon NJ Real Estate, Long & Foster Avalon

ICYMI September 2016 Luxury Housing Market Update - Long & Foster Real Estate, Lux Insight

Cape May County, New Jersey - September 2016 

At Long & Foster, our dedication through the years to luxury properties is evidenced by the power of our Extraordinary Properties® brand. With highly-trained, professional sales associates and a powerful reach, Long & Foster sells more luxury homes throughout the Mid-Atlantic region than our nearest competitors, by far.

Compared to last September, the total number of homes more than $1 Million available this month was higher by 0.7% and lower by 12.0% compared to September 2014. Active inventory this September was 10.2% higher than the previous month’s supply of available inventory.

Nancy M. Alexander Stone Harbor and Avalon NJ Real Estate, Long & Foster Avalon

Nine Energy-Efficient Fall And Winter Tips

Saving energy is a priority year round, but when the temps start to dip, and those 24-hours-a-day heating bills kick in, finding ways to conserve takes on new urgency. A few tips can make a big difference in keeping your home, your energy usage, and your bank balance, comfortable.

Use the Earth's natural heater

In the summer, it's all about keeping the heat out by drawing blinds and curtains. But, in the cooler months, using the power of the sun can help you warm your home and keep your heating costs down.

"Open curtains on your south-facing windows during the day to allow sunlight to naturally heat your home, and close them at night to reduce the chill you may feel from cold windows," said Energy.gov.

Check for leaks

Do a walkthrough, looking for spaces where air can be escaping or getting in. The space under, over, and around doors and windows is an obvious spot. Also look for gaps near chimneys, recessed lights, behind and inside cabinets and closets, and around areas where plumbing pipes make contact with walls and other parts of the home. This Old House provides guidance on how to self-check for leaks. Or, you can hire a professional to come do a home energy audit.

Insulate the windows

Light, gauzy window coverings may look great, but they could be contributing to a cold home and a waste of energy, especially on windows that are not receiving direct sunlight. If you've addressed leaks and the area close to your windows still feels cold, insulated drapes should help.

Check your heating system

"Dirt and neglect are the top causes of heating system failure," said Huffington Post. "If your heating equipment is more than 10 years old, now is a good time to schedule a season checkup with a licensed contractor to make sure your system is operating at peak performance." You also want to make sure you're regularly checking and changing the air filter - at a minimum of every three months, they said.

Turn down your thermostat

Turning the heat down by 10–15 degrees "when you are asleep or out of the house" can save about "10% a year," according to energy.gov. Using a programmable thermostat to adjust the temperature when everyone is out of the home is key. But a smart thermostat ups the ante. Our favorite is the Ecobee3, because it features a remote sensor you can put in another room to regulate the temperature throughout the house, as well as a touchscreen that makes using it even easier.

Take a look at your fireplace

A crackling fire may make the room nice and toasty when you're in front of it, but what about when you don't have a fire burning? Keep your "fireplace damper closed at all times unless fire is burning," said Delfera Heating & Cooling. "Keeping the damper open causes the warm air to go up the chimney instead of heating your house. If you no longer use your fireplace, plug and seal the chimney flue to ensure maximum energy efficiency."

Lower the temp on your water heater

If you can stand a shower that's not scorching, lower the temperature a bit and you'll see a big return. Typical water heating "accounts for about 18% of the energy consumed in your home," according to Energy.gov. Turn it down "to the warm setting (120°F) to save energy," said Delfera.

Don't heat unused spaces

If you have rooms that aren't being used all the time, close the vents and shut the doors. This will help the heating system run more efficiently by pushing air only to the spaces that need it.

Consider your holiday lights

If it's been a while since you changed out your Christmas lights, it may be time to consider a new approach. "For some, LED lights may be the way to go," said USA Today. Frank Skinner, marketing director for ChristmasLightsEtc.com, told them that, "For the most part, all LED lights use up to 90% less electricity than their incandescent counterparts. So right off the bat, there are some savings there with energy.''

They may cost a bit more upfront, but will pay off (literally) in the long run.


Written by Jaymi Naciri



Nancy M. Alexander Stone Harbor and Avalon NJ Real Estate, Long & Foster Avalon

Avalon/Stone Harbor NJ Weekly Update November 10th, 2016

THE 96th STREET BRIDGE remains closed to vehicular and marine traffic due to a crack in one of its main girders.  Temporary trusses are expected to be installed on top of the bridge, allowing vehicular traffic to cross over the span as soon as November 18th.  The cracked girder can then be jacked into position and the crack repaired.  Meanwhile, vehicles entering or leaving Stone Harbor must use North Wildwood Boulevard or Avalon Boulevard.  Boats too tall to pass under the 96th Street Bridge must travel north or south via the ocean.
 
 

Workers examine the 96th Street Bridge after a cracked girder was discovered. Temporary trusses are expected to have it open to vehicular traffic on November 18th. 

$708 MILLION!  That’s the amount of annual tourism spending in Cape May County—well ahead of Atlantic County’s $360 million and Ocean County’s $636 million, according to a 2015 state report.  Cape May County has marketed itself as a tourist destination for both the popular summer season, as well as the fall and off season.  Cape May County’s most recent marketing campaign, “Fall for the Jersey Cape,” began in late summer, with the goal of increasing visits to the area on fall weekends.  
 
VETERAN’S DAY CEREMONIES will be held in both Avalon and Stone Harbor on Friday, November 11th.  Avalon’s ceremony will take place at 11am at Veteran’s Plaza at 21st & Dune Drive; at 12 noon Stone Harbor’s ceremony will occur at the American Legion at 11617 Second Avenue. 
 
ANOTHER SUPERMOON will rise in the sky the evening of November 14th, with the moon making its closest appearance to earth since 1948.  The moon will appear 14 percent larger and 30 percent brighter in the sky—and local beaches make a superb viewing location!
 
FLOOD INSURANCE MEETING CANCELLED:  Stone Harbor’s flood insurance informational meeting, scheduled for November 26th, has been cancelled.
 
WINTERIZE NOW: the first taste of cooler weather means it’s time to think about winterizing outdoor showers and other outside water lines.  Contact your plumber now to get on the schedule. Need a plumber?  Contact me for recommendations!
 
UPCOMING EVENTS:

• American Legion Post #331 Veterans’ Day Ceremony, Veterans’ Plaza in Avalon, 11AM, Friday, November 11
• Stone Harbor American Legion Veterans’ Day Ceremony, 11617 Second Avenue in Stone Harbor, Noon, Friday, November 11
• Brendan Borek High Tides Memorial Fund Striper Tournament, registration includes a ticket to the Awards Dinner, visit www.brendansfund.org for details, Saturday, November 12
• Olde Fashioned Christmas Bazaar, First United Methodist Church of Avalon, 9AM-2PM, Saturday, November 12
• Avalon Home & Land Owners Association Meeting, Scott Wahl, Avalon’s Business Manager, will speak on fall plans for the borough of Avalon including beach fill options, Community Hall, 10AM, Saturday, November 12
• Pirate Day at the Cape May County Zoo, come dressed as a pirate & enjoy treasure hunts, games, stories & photo ops, 11AM-2PM, Saturday, November 12
• Cape May Traditional Jazz Society presents the Atlantic City Jazz Band, proceeds benefit the Food Bank of Southern Jersey, VFW Post #386, 419 Congress Street, Cape May, 2-4PM, Sunday November 13
• Creative Writing Seminar, Avalon Public Library, register at 609-967-7155, 10AM-Noon, Saturday, November 19
• Princess Day at the Cape May County Zoo, come dressed as a princess (or prince!) to enjoy glass slipper hunts, games, sing-a-longs, stories, photo ops, 11AM-2PM, Saturday, November 19
• Brendan Borek High Tides Memorial Fund Turkey Trot, check in at 8am for a 5K walk, trot or jog, visit www.brendansfund.org for info, Thursday, November 24
• Story Time for Children with Mrs. Claus, Avalon Public Library, 10-10:45AM, Friday, November 25
• Stone Harbor’s Island Holiday events including a gala Christmas Parade on Saturday evening at 6:30PM, downtown shopping district, 10AM-9PM, Friday, November 25-Saturday, November 26
• Avalon’s Festive Friday, Avalon Shopping District’s kick-off of the holiday season, 11AM-6PM, Friday, November 25
• Avalon’s Festival of Trees, The Whitebrier, Noon-8PM, Friday, November 25
• Avalon’s Tree Lighting, Veteran’s Plaza, 5PM, Friday, November 25
• Wetlands Institute’s Wetland Wonderland, 9:30AM-3PM, Saturday, November 26
• Avalon’s Snowfest Saturday, events for the entire family, downtown Avalon, 11AM-4PM, Saturday, November 26
• Christmas Tree Lighting at the Hereford Inlet Lighthouse, 5:30PM, Friday, December 2
• Stone Harbor Caroling & Christmas Tree Lighting, ride the trolley through town for the caroling at 4:45PM & join in the tree lighting at 6PM, Wednesday, December 7
• Big Band Dance featuring The Star Band, Avalon Community Hall, 7PM, Saturday, December 10

 
 
Featured Property:


A quiet location on the bay with views and a place for your boat! 



39 Flamingo Drive, Avalon, $2,999,000, ACTIVE MLS#: 172466

 
New Listings:
 
915 Stone Harbor Boulevard, Stone Harbor Manor, $125,000, ACTIVE MLS#: 173237

418 Old Avalon Boulevard, Avalon Manor, $329,000, ACTIVE MLS#: 173236

177 80th Street, Avalon, $465,000, ACTIVE MLS#: 173241

8931 Second Avenue Unit 5, Stone Harbor, $498,000, ACTIVE MLS#: 173268

1708 Ocean Drive, Avalon, $599,000, ACTIVE MLS#: 173158

300 79th Street, Avalon, $619,000, ACTIVE MLS#: 173258

153 83rd Street - Unit C, Stone Harbor, $649,999, ACTIVE MLS#: 173239

224 96th Street, Stone Harbor, $950,000, ACTIVE MLS#: 173220

590 24th Street, Avalon, $1,150,000, ACTIVE MLS#: 173224

337 94th Street, Stone Harbor, $1,350,000, ACTIVE MLS#: 173175

3465 First Avenue, Avalon, $1,499,000, ACTIVE MLS#: 173274

49 Seabreeze Lane, Avalon Manor, $1,675,000, ACTIVE MLS#: 173269

2400 Avalon Avenue, Avalon, $2,195,000, ACTIVE MLS#: 173170

570 22nd Street, Avalon, $2,295,000, ACTIVE MLS#: 173212
 

Properties Sold:

349 92nd Street, Stone Harbor, $580,000, SOLD MLS#: 166589

2107 Ocean Drive, Avalon, $597,000, SOLD MLS#: 170005

1114 Stone Harbor Boulevard, Stone Harbor Manor, $625,000, SOLD MLS#: 173267

1116 Stone Harbor Boulevard #104, Stone Harbor Manor, $660,000, SOLD MLS#: 169115

2288 First Avenue, Avalon, $1,190,000, SOLD MLS#: 172619

408 22nd Street, Avalon, $1,745,000, SOLD MLS#: 169814

8520 Sunset Drive, Stone Harbor, $2,850,000, SOLD MLS#: 171217



Nancy M. Alexander Stone Harbor and Avalon NJ Real Estate, Long & Foster Avalon

Home Sellers: The Curse Of The First Offer

Sometimes when everything goes right we have trouble accepting that fact. Perhaps nowhere is this phenomenon more clearly illustrated than in the case where a seller receives a good offer right away.

The annals of real estate are well stocked with stories of sellers who refused to take a good, but not perfect, first offer, and who then waited a long, long time before finally accepting something else at a considerably lower price. And most agents who have been around for a while know to shudder when a good strong offer is made almost at the outset of a listing; for the seller's reservations are almost inevitable. "Did we list it too low?" "If someone will offer this much so soon, maybe we should wait a while and see if we can get more." Etc.

When we read of Silicon Valley listings routinely selling at 15% above list price, and when we've just recently come through a period when multiple-offer situations were commonplace, it is understandable that such thoughts come to mind. Nonetheless, they are generally unfounded, especially if the market is anywhere near "normal", as ours is today.

As an antidote to the ill effects of the "curse of the first offer", a couple of observations might be kept in mind.

First, the fact that an offer is received early in the listing period -- even in the first few days -- doesn't mean that the property has been listed too low.

It is easy to overlook how very efficient the residential real estate marketplace has become. Modern multiple listing systems (MLS) provide agents, and thus their buyer clients, with virtually instant access to information about existing inventory and about what has newly come on the market. In the old, old days a buyer's agent did not become aware of new listings until "the book" (i.e. the compilation of MLS listings) was published. There might have been a lag time of ten days or more from the time the listing was taken.

Today, a good buyer's agent will have electronically entered a "profile" of his client's needs and price range into the system. Then, whenever he logs on to the MLS, he will be notified if a listing has been entered that matches that profile. In a low-inventory market such as we have had recently, buyers' agents will log on a half-dozen times a day, or more, to see if an appropriate new listing has been entered. Moreover, in most systems the buyer's agent is able to place the buyer himself on a similar notification.

The point is that potential buyers learn quickly of the existence of an appropriate new listing. Thus a flurry of activity at the outset of the listing does not necessarily imply a too-low price; rather, it reflects the efficiency of the system.

Secondly, an early first offer does not imply that the seller should hold out for full price.

We all know that there is typically a bit of a dance in the pricing and negotiating for a property. Sellers, with the concurrence of their agents, will usually list their property for an amount that is both higher than what they believe its value to be and higher than what they would be satisfied to receive. Why? Because they know that buyers almost always want and expect to pay less than the listed price

However, when an otherwise acceptable offer comes in near the outset of a listing period, sellers are frequently tempted to hold out for full price, or much closer to it than would normally be expected. Caution should be exercised in this regard.

For one thing, as we have noted, exposure of the property to buyers occurs pretty quickly nowadays, and sellers shouldn't assume that there are going to be more, much less higher, offers as the listing period progresses.

Secondly, there often can be a transactional benefit to "leaving something on the table." A real estate transaction is a process. These days, with inspections and disclosures, there are almost always "second negotiations" during the course of escrow. A buyer who feels ground down in the purchase negotiation may well be more difficult to deal with as other issues arise.


Written by Bob Hunt



Nancy M. Alexander Stone Harbor and Avalon NJ Real Estate, Long & Foster Avalon

October Round Up: Mortgage Rates Ease

In Freddie Mac's results of its Primary Mortgage Market Survey®, the average fixed mortgage rate slipped from last week's spike and the 30-year fixed-rate mortgage easing back to its summertime range below 3.5 percent.

• 30-year fixed-rate mortgage (FRM) averaged 3.47 percent with an average 0.6 point for the week ending October 27, 2016, down 5 basis points from 3.52 percent last week. A year ago at this time, the 30-year FRM averaged 3.76 percent.
• >15-year FRM this week averaged 2.78 percent with an average 0.5 point, down slightly from last week when they averaged 2.79 percent. A year ago at this time, the 15-year FRM averaged 2.98 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.84 with an average 0.4 point, down slightly from last week when it averaged 2.85 percent. A year ago, the 5-year ARM averaged 2.89 percent.

According to Sean Becketti, chief economist, Freddie Mac:

"Mortgage rates continue to be relatively stable and at near record lows. The 30-year fixed-rate mortgage fell 5 basis points week-over-week to 3.47 percent, erasing last week's increase. At the same time, the 10-year Treasury yield ended the week relatively flat -- up about 2 basis points."

Avoid Surprises: Know Your Homeowner's Coverage

The typical homeowner's policy includes coverage for perils and losses due to fire, lightning, tornadoes, windstorms, hail, explosions, smoke, vandalism and theft. Just as you would scrutinize the terms of your medical insurance, the nuances and details of your homeowner's policy should be examined seriously.

Too often, homeowners sign up for a policy and go on autopilot regarding its terms and coverage without taking new acquisitions, risks, and increasing value of their homes into consideration. Most insurance agents recommend a regular insurance "check-up" for consumers, so that homeowners are not left "high and dry" when disasters and losses strike.

Costly Mistakes First-Time Buyers Make

Five common and costly mistakes that novice home buyers make:

• Ignoring the costs of having a low credit score. Lower-score borrowers pay thousands of dollars in increased interest rates over the life of the loan.

• Shopping for other things before closing. Lenders continue to check credit scores right up until closing. Too much shopping could cause the lender to take back the loan.

• Scrimping on an inspection. Being surprised by the need for expensive repairs can be financially devastating.

• Buying without contingencies. Buyers should give themselves an out if the inspection turns up problems or the bank raises rates.

• Insurance can be surprisingly pricey. Buyers who don't budget for it can face a nasty surprise.

The Garage May Be a Big Selling Point

More buyers are house-hunting with garages in mind. Twenty-four percent of homes built in 2015 came with space for three or more cars in the garage -- the highest share since the Census Bureau started tracking large garages in 1992. In fact, home builders are now constructing more three-car garages than one-bedroom apartments, Bloomberg reports.

Home buyers care about garage space. One in three buyers say they prefer a three-car garage, according to a survey conducted by John Burns Real Estate Consulting. Fifty-one percent say they want a two-car garage and 10 percent said a one-car garage would suffice.

That doesn't mean they want the extra space to store another car necessarily. The share of households who own three or more cars has stayed mainly flat. In 2013, 19.7 percent of home owners had three cars in 2013 compared to 17.3 percent in 1990, according to the Bureau of Transportation Statistics. Instead, they're using garages to store extra items, as workspaces, or even transforming them into in-law apartments.

The trend of desiring extra garage space does appear to be mixed, however.

"We're seeing more multi-generational housing, where the kids are taking care of elderly parents or you have the new grad moving home after college, and now you have four cars where it might have been two before," Pete Reeb, a principal at the consultancy, told Bloomberg.


Written by Realty Times Staff

Nancy M. Alexander Stone Harbor and Avalon NJ Real Estate, Long & Foster Avalon

How To Deal With Your House During A Divorce

Ending your marriage? Been there. And it stinks, especially if you have to unravel your financial interests and what once represented your shared dreams at the same time.

Yes, when a marriage ends, more than your relationship status changes. One of the most important and potentially complicated changes you have to make is to your living arrangements. Not only does your divorce impact where you live, but also the financial commitment tied to your mortgage if you own a home together.

"Usually, the mortgage is the biggest liability the couple has to split. And divorcing your mortgage isn't easy," said Bankrate. "In the eyes of the mortgage lender, you remain married and liable for the mortgage unless you sell the house or refinance."

Selling and refinancing are two of the most popular options for dealing with your house during a divorce. But they aren't the only ones. Let's break them down.

Sell the house, deal with the profits

This is a common practice when divorcing and is often the option required by the court, if the divorce is contentious and both parties have been unable to come to an agreement on their own. Assuming there is: a) some equity in the home; b) it's considered community property; and c) there isn't any prior agreement (in writing) regarding the interest in the home, the equity is often split 50­–50.

"During the course of a marriage, any property the couple acquires during the marriage is considered community property," said FreeAdvice Legal. "Generally, if the house was purchased with community property funds during the marriage, the house would be considered community property because the source of the funds determines the character of the item. When the house is considered community property, each spouse would have a one half interest in the house and would have a one half interest in the equity."

Huffington Post

Refinancing to stay in the house

If one person wants to stay in the house and has the financial means of doing so, buying the other party out and refinancing is an option. But, it's not always easy to pull off.

Presuming the qualification when you first bought the home was based on two incomes, you may have trouble qualifying on just one. You'll also need to meet the lender's credit score requirements. And, extensive outstanding debt and high alimony and/or child support payments to the other party can create issues for lenders.

"Even if the breadwinner spouse is the one refinancing, challenges can arise, Mathew Carson, a broker with San Francisco-based First Capital Group, told the Wall Street Journal. "For example, he has a client who was unable to qualify for a jumbo refinance despite a $250,000 annual income." Her debt-to-income (DTI) "is 45% due to her earnings being reduced by the $3,500 a month she pays in alimony and child support to her ex-husband, he said. She also has credit card debt."

Staying on the mortgage but moving out

Refinancing removes the other party's name from the mortgage and releases them from the financial obligation. But if refinancing isn't an option, one party wants to stay in the home, and the soon-to-be-former spouse is amenable to remaining on the mortgage after moving out, there is another option.

Starting Point Real Estate

"Sometimes a spouse may agree to stay on the mortgage, trusting the ex to continue making payments," said Bankrate. It's important to remember that the loan balance and all payment activities will continue "to appear on both parties' credit reports - even if all payments are made on time."

Assuming the mortgage

In most situations, a lender won't remove one of the party's names from the mortgage without refinancing. A quitclaim deed can transfer interest in the property but does not absolve the party from their financial commitment tied to the mortgage. But, while rare, mortgage assumptions that would allow one person to "assume" the mortgage while releasing the other from liability are sometimes still possible—and worth looking into—for couples investigating the best options for dealing with the marital home when divorcing.

"Ask your lender if the mortgage loan is ‘assumable,'" said Home Guides. "Keep in mind that you must earn sufficient income to qualify to assume the loan, and know that not all mortgages can be assumed. If your lender allows you to assume the mortgage, you usually must provide a copy of a divorce decree. Some lenders will also require you to prove your income through pay stubs and tax returns, just like you did to qualify for the original home loan."

Both parties remain in the house

For many divorcing couples, the idea of continuing to live in the family home with your future ex sounds less than desirable (hence, Philly magazine's article titled, "Is This Nuts? More Couples Living Together After Divorce.").

The advantages: No upheaval for the kids and no marked increase in expenses because you're going from one household to two. The main disadvantage: Having to still live with a person you'd rather not to have to see every day. And don't even get into the dating while divorced and still living together conversation, which, obviously has the potential for making things at home really weird.

The most successful cohabitation situations among divorced couples tend to surround homes that have separate spaces, so one person isn't sleeping on the couch in the middle of the living room and both enjoy some semblance of privacy.

Elle Decor

Split the house in half

If all else fails, just divide your home in half. Or, make sure you buy a dividable home before you marry the next time.

"An Amsterdam-based design studio has created a floating home that separates into two spaces when its unhappy inhabitants break up," said Elle Décor. "According to Dezeen, self-proclaimed PR and pop culture expert Omar Kbiri approached Studio OBA with the idea for ‘Prenuptial Housing' after hearing breakup stories while searching for a place with his current girlfriend. Sounds like a romantic guy! The home consists of two independent prefab units which float on water, and Studio OBA designed a system which keeps them entwined. When you and your partner separate, simply disconnect the units and they'll begin to drift apart. On the bright side, as Kbiri points out in a press release by the firm, should you reunite, the units can reattach."


Written by Jaymi Naciri


Nancy M. Alexander Stone Harbor and Avalon NJ Real Estate, Long & Foster Avalon

Daylight Savings Time: Chores to 'Fall Back' On

Today's News and Features
By John Voket

We all lament the loss of an hour as Daylight Savings Time ends—but that loss can also serve as a reminder that it's never too soon to see to a number of chores around the house.

For example, Bel Red Energy Solutions of Seattle reminds its customers to change the batteries in all smoke and carbon monoxide (CO) detectors, and make sure they are all in working condition.

Bel Red explains that since sensors in CO detectors don’t typically last as long as smoke detectors (2-3 years, on average), it may be time to replace one or more of them.

What if you don't have a CO detector? If you’re looking to purchase one for the first time, or replace an aging one, Bel Red suggests a new, low-level CO detector with a 5-year sensor.

Boise Basin Insurance Services, on the other hand, recommends using Daylight Savings Time as a prompt to clean your medicine cabinets. Remember: some medications should not be thrown away in a trash can or flushed down the toilet. Find a drug disposal facility in your area, or contact your local law enforcement agency, for more information.

Boise Basin also suggests taking the twice yearly opportunity to drain your water heater—flushing it out is the best way to remove any built-up sediment, which can lead to reduced efficiency.

And—as long as you're setting clocks ahead by an hour—replace the batteries in those, too!




Nancy M. Alexander Stone Harbor and Avalon NJ Real Estate, Long & Foster Avalon

The Benefits for Financing Down Payments and Renovations

Whether you're a professional property developer or a single homeowner, financing your property ambitions comes above all else. Even professional property developers with a proven system of acquiring and renovating homes, condominiums and business properties can run into financing issues.

We've examined the benefits of financing a higher down payment, purchasing renovations and the cash financing options available for those of you looking to buy and upgrade your home.

Why Save For a Greater Down Payment?

Banks and lenders want low risk scenarios and that ultimately comes down to meeting the required down payment for your mortgage deal, and they'll give you a better deal if you offer a lower risk scenario. Paying an increased down payment comes with a number of fantastic benefits for your financial future. Here's a few key benefits, according to Investopedia;

• Reduced Mortgage Payments - Because you've put more cash up front, your monthly payments will be smaller and more manageable

• Lower Interest Rates - Lenders will give you a far improved rate since you're deemed a lower risk. Expect interest rates to lower significantly upon 20% down payment.

• No Mortgage Insurance Fees - If you can't afford a significant deposit, most mortgage deals will require you to take out mortgage insurance, which will add another 0.5 - 1% interest on top of your existing deal.

• Ability to Ride Out Financial Crises - When it comes to a financial crisis, those in most danger of ruin are the ones who have taken out the maximum loan available on the lowest down payment. They have a high interest rate deal and may even face foreclosure.

Why Save For Renovations?

Renovations and upgrades obviously provide that wonderful ability of allowing you to transform your new home into your own dream living space. But aside from that, they can also allow you to significantly improve your home's resale value. Investopedia strongly advise making wise additions to your home that will ultimately boost your bottom line.

According to US News Money, these are the renovations and replacements that will bring the greatest % return on investment;

Renovations that bring the greatest percentage return on investment:

Entry door replacement: 96.6%
Deck addition (wood): 87.4%
Attic bedroom: 84.3%
Garage door replacement: 83.7%
Minor kitchen remodel: 82.7%

Renovations that yield the smallest return:

Home office remodel: 48.9%
Sunroom addition: 51.7%
Bathroom addition: 60.1%
Backup power generation: 67.5%
Master suite addition: 67.5%

Financing Options

So now you understand some of the reasons for actually spending more cash on your home! But if you don't have a large disposable income, you may need to find a means of financing your purchases.

• Saving - Of course, the glaringly obvious method for saving a down payment isn't so straight forward. That's especially true if you've got student debt, rental payments and bills to pay, with very little disposable income to go towards your downpayment. The internet is a wonderful place however, and fortunately there's a number of down payment saving strategies to help you!

• Help from your parents & family - It's the go to option for many first time home buyers. Loving parents are willing and often able to give you that extra boost in disposable income necessary to make that all important down payment on your first home. Even if you can agree a repayment plan with them, that's going to be far more favourable than turning to a personal loan for financial assistance.

• Personal loans - There's a number of reasonable options for taking out a personal loan - Peer-to-peer lending platforms, car title loans (see how car title loans work) and credit cards are just some of your options for accessing cash.

• Tap your IRA - There's an exemption for withdrawing up to $10,000 from your IRA for the purpose funding your first home. It's an initiative you should consider if you've got money built up!

• Hustle - Whether it's getting a second job or selling off your unwanted possessions on Ebay and Craigslist, there's nothing like a bit of hustle to increase your bank balance and put you in a more financially secure situation.

Whatever you decide, ensure that you're in a stable situation to make the commitment of purchasing property. After all, the 2008 financial crash was a stark reminder that the property market can be a fickle one.


Written by Rebecca Kennedy


Nancy M. Alexander Stone Harbor and Avalon NJ Real Estate, Long & Foster Avalon

Top Tips For Selling Your House In Fall And Winter

The temperature is dropping, the leaves are changing, and pumpkin spice everything has taken over the world. With fall color and produce so prominent at this time of year, you may be tempted to load up your home with an abundance of both. But if you're trying to sell your home now, a little discretion may go a long way. And that's just one of the tips for selling your house in the fall and winter.

Pay close attention to your curb appeal

We've admitted to having a problem resisting the temptation to buy every available pumpkin and decorative gourd at the market at this time year, so we feel your pain. But when it comes to styling your front porch, there's a slippery slope between nicely decorated and Farmer's Market.

The idea is to enhance your curb appeal, not obscure it. "While too many fall decorations will take focus off of your home and its best features, a few tasteful accents can create an inviting setting and make your home feel fresh," said HGTV.

You also want to make sure that fall leaves haven't taken a toll on your yard. Buyers may be understanding if your lawn is covered and unkempt, because they're living the same reality, but that doesn't mean the home will make a good impression.

Go easy on the gore

You may love the idea of blood and guts and skeletons rising from your yard and headless individuals hanging from your trees, but will buyers be amused or afraid? Anything that has the potential to turn them off is a no-no when listing your house. Sticking to safe decor choices will help you appeal to the masses.

Go easy on the holiday displays, too

Apply the same logic when it comes to Christmas decorations. Tasteful displays will, quite literally, show the home in its best light. Outfitting the home to compete with the Griswolds will make it a spectacle, but not necessarily saleable.

Let In the Light

It's always a good idea to open blinds and make sure windows are sparkly when trying to sell your home. But especially with shorter days in the fall and winter, you want to make sure you maximize the light in your home, which can make it look larger, fresher, and also "highlight your home's best features," said HGTV. Still need a little help? "Let in as much natural light as possible…and place plenty of lamps throughout your home for additional illumination."

Make your space inviting

As the weather cools down, a warm and cozy atmosphere will give potential homebuyers a warm and cozy feeling. Use plush throws on the couch and beds, add fall-accented pillows to couches and chairs, and, "Try displaying vases of fall foliage or bowls of seasonal fruit throughout your home," said HGTV.

Prepare your fireplace

A roaring fireplace during showings adds to the welcoming feeling. But, even if you're not yet ready to light a fire, making the fireplace look great is important. Clean those doors well, and sweep out the inside, too. If the paint inside your fireplace is wearing away, a fresh coat will help. Now, stack that wood nicely or replace it with some modern glass, and you're ready to go.

Use fall scents to your advantage

Cinnamon and pumpkin spice and vanilla, oh my! The flavors of fall are unmistakable, and when they're flowing through your home, you can create a powerful connection with buyers.

"The fall and winter months are associated with certain smells and flavors (think: pine needles, cinnamon, peppermint and pumpkin pie). Beyond setting the mood with decorations, you could try appealing to buyers' senses in multiple ways," said Smart Asset. "For example, if you're hosting an open house you could keep hot chocolate and pumpkin muffins on hand for visiting buyers. If you don't want to go that far, keeping a scented candle burning in the background or playing some holiday music can work wonders."


Written by Jaymi Naciri


Nancy M. Alexander Stone Harbor and Avalon NJ Real Estate, Long & Foster Avalon

Avalon/Stone Harbor NJ Weekly Update November 3rd, 2016

THE 96TH STREET BRIDGE was closed unexpectedly over the weekend after a structural problem was discovered.  Both automobile traffic and openings for marine traffic have been suspended after a County bridge crew found a crack in one of the main span girders while performing electrical work last Friday.  The bridge is expected to remain closed until at least next week so repairs can be made.  Vehicles headed to Stone Harbor should use Avalon Boulevard or North Wildwood Boulevard instead.

AVALON OFFICIALS are looking at options to move a joint Avalon-Stone Harbor hydraulic beach fill project forward.  The project has been discussed for quite some time but ran into a roadblock when the US Fish and Wildlife Service claimed that Hereford Inlet could not be used as a borrow site for sand for the Stone Harbor portion of the project.  Avalon’s sand was to come from Townsend’s Inlet but since the project covers both towns, Avalon’s administrator said if Stone Harbor’s portion of the project didn’t occur, neither would Avalon’s.  Avalon officials may turn to the court system for relief to allow the dredging project to move forward.  In the event it does not,  Borough officials would turn to “backpassing,” a process of moving sand from one area of the beach to another, via bulldozers and dump trucks.  Backpassing has been used previously to replenish beaches, but is seen as a method to extend the time between hydraulic dredging projects, not a replacement for it.

WANT YOUR OWN LIFEGUARD BOAT?  There’s an Avalon lifeguard boat available on ebay right now!  The 17-foot Van Duyne, located in York, PA, is offered at the Buy it Now price of $1,800.  Visit http://www.ebay.com/itm/Van-Duyne-Surf-Boat-Avalon-Lifeguard-Boat-17-3-/262696938108?hash=item3d29f52a7c:g:6aoAAOSwnbZYFOo7to have a look!

FLOOD INSURANCE CHECKUP:  Stone Harbor residents are invited to a meeting Saturday, November 26th from 9:30am to 12 noon for a review of changes to the National Flood Insurance Program, steps to take to mitigate flood losses, followed by group or individual reviews of your current flood insurance coverage.  If you have them, bring your elevation certificate and your current flood insurance policy so that specific mitigation steps can be recommended; if you don’t have them, your situation can still be reviewed.  The meeting will be held at the Stone Harbor Municipal Building at 9508 Second Avenue.  To reserve a seat visit http://stoneharbor.eventbrite.com or call (866) 599-7065.

UPCOMING EVENTS:

• iPad Workshop, Avalon Public Library, register by calling 609-967-7155, 10AM-Noon, Saturday, November 5
• Cape May County 8th Annual Disabilities Awareness Day, Avalon Community Hall, free health screenings, more, 10AM-1PM, Saturday, November 5
• Corn Husk Fall Wreath Art Workshop, Avalon Public Library, register by calling 609-967-7155, 10AM-1PM, Saturday, November 5
• Slither & Snore Sleepover, spend a night in the reptile house at the Cape May County Zoo, enjoy a continental breakfast the next morning, 6PM on Saturday, November 5 thru 9AM on Sunday, November 6
• Big Band Dance featuring Marilyn & the Monroes, Avalon Community Hall, 7PM, Saturday, November 5
• American Legion Post #331 Veterans’ Day Ceremony, Veterans’ Plaza in Avalon, 11AM, Friday, November 11
• Stone Harbor American Legion Veterans’ Day Ceremony, 11617 Second Avenue in Stone Harbor, Noon, Friday, November 11
• Brendan Borek High Tides Memorial Fund Striper Tournament, registration includes a ticket to the Awards Dinner, visit www.brendansfund.org for details, Saturday, November 12
• Avalon Home & Land Owners Association Meeting, Scott Wahl, Avalon’s Business Manager, will speak on fall plans for the borough of Avalon including beach fill options, Community Hall, 10AM, Saturday, November 12
• Pirate Day at the Cape May County Zoo, come dressed as a pirate & enjoy treasure hunts, games, stories & photo ops, 11AM-2PM, Saturday, November 12
• Cape May Traditional Jazz Society presents the Atlantic City Jazz Band, proceeds benefit the Food Bank of Southern Jersey, VFW Post #386, 419 Congress Street, Cape May, 2-4PM, Sunday November 13
• Creative Writing Seminar, Avalon Public Library, register at 609-967-7155, 10AM-Noon, Saturday, November 19
• Princess Day at the Cape May County Zoo, come dressed as a princess (or prince!) to enjoy glass slipper hunts, games, sing-a-longs, stories, photo ops, 11AM-2PM, Saturday, November 19
• Brendan Borek High Tides Memorial Fund Turkey Trot, check in at 8am for a 5K walk, trot or jog, visit www.brendansfund.org for info, Thursday, November 24
• Story Time for Children with Mrs. Claus, Avalon Public Library, 10-10:45AM, Friday, November 25
• Stone Harbor’s Island Holiday events including a gala Christmas Parade on Saturday evening at 6:30PM, downtown shopping district, 10AM-9PM, Friday, November 25-Saturday, November 26
• Avalon’s Festive Friday, Avalon Shopping District’s kick-off of the holiday season, 11AM-6PM, Friday, November 25
• Avalon’s Festival of Trees, The Whitebrier, Noon-8PM, Friday, November 25
• Wetlands Institute’s Wetland Wonderland, 9:30AM-3PM, Saturday, November 26
• Avalon’s Snowfest Saturday, events for the entire family, downtown Avalon, 11AM-4PM, Saturday, November 26
• Christmas Tree Lighting at the Hereford Inlet Lighthouse, 5:30PM, Friday, December 2
• Big Band Dance featuring The Star Band, Avalon Community Hall, 7PM, Saturday, December 10

Featured Property:

Multiple decks offer views of Sterbeck Harbor, the IntraCoastal Waterway, and Townsend’s Inlet!

629 Avalon, Avalon Manor, $800,000, ACTIVE MLS#: 171273


New Listings:

413 98th Street, Stone Harbor, $559,000, ACTIVE MLS#: 173151

1708 Ocean Drive, Avalon, $599,000, ACTIVE MLS#: 173158

10918 Third Avenue, Stone Harbor, $800,000, ACTIVE MLS#: 173119

166 15th Street, Avalon, $899,999, ACTIVE MLS#: 173114

139 12th Street, Avalon, $1,345,000, ACTIVE MLS#: 173115

220 19th Street, Avalon, $1,350,000, ACTIVE MLS#: 173125

4029 Dune Dr., Avalon, $2,299,500, ACTIVE MLS#: 173104

135 77th Street, Avalon, $4,495,000, ACTIVE MLS#: 173066

12 106th Street, Stone Harbor, $5,200,000, ACTIVE MLS#: 173150


Properties Sold:

1708 Ocean Drive, Unit 2, Avalon, $630,000, SOLD MLS#: 170121

2137 Ocean Drive, Avalon, $640,000, SOLD MLS#: 170223

1629 Dune Dr., Avalon, $972,500, SOLD MLS#: 170271

199 11th Street, Avalon, $1,760,000, SOLD MLS#: 171478

141 20th Street, Avalon, $1,940,000, SOLD MLS#: 171272

45 E 11th Street, Avalon, $2,160,000, SOLD MLS#: 166564

215 120th Street, Stone Harbor, $2,633,000, SOLD MLS#: 169593

4510 Fifth Avenue, Avalon, $4,750,000, SOLD MLS#: 169804

Nancy M. Alexander Stone Harbor and Avalon NJ Real Estate, Long & Foster Avalon

Worst Time Of The Year May Be The Best For Buyers

Why is the worst time of the year, often the best time for real estate buyers?

The holiday season and the following "worst weather" months are widely considered the worst time of the year for selling or buying real estate. In reality, these distraction-packed months - November to February - carry benefits for determined buyers.

• Join the "herd" of buyers who are active during traditional "good weather" home shopping months - starting with the spring frenzy of home buying - and this competition for properties can mean buyers pay more, lose out on good-value listings, and receive less attention from swamped real estate and mortgage professionals.

• Get outside the traditional "box" of right times to buy and you'll deal with sellers who are very committed to selling, real estate and mortgage professionals able to give you their full attention, and less competition for good-value listings. This lack of competition should mean you get more for your money with less hassle, more personalized service from real estate and mortgage professionals, and time to make confident decisions.

Yes, tradition may dictate that you put your dreams and your life on hold to spend and eat too much over the holiday season, and then cut corners when bills come in during the winter. However, "we've always done it that way" tradition does not mean we've ever done it the right way. What priority do you give your real estate goals and dreams? Is it time for you to break from the buyer "herd" and make sure you receive the best buying opportunity possible?

The key advantage of shopping for a home during "the worst times" is that sellers who have listed their property during these periods are serious, often very serious, about selling. Motivated sellers understand why they benefit from taking offers to purchase seriously and take the time to explore how they may be able to work with the buyers. As we've discussed before, it's about a lot more than purchase price. For instance, offering to match the seller's perfect closing date can carry considerable value for the seller just as not asking for a huge shopping list of inclusions means savings for sellers.

There's a practical side, too. Viewing property at "the worst time" can tell you a lot about what you can really expect from a property:

• Visit a house during a hard rain and you'll see how well the eavestrough system does its job. No overflowing gutters, waterfalls at corners, or soaked exterior walls. There should not be exterior water damage or water in the basement (at least from that source). Observe how the rain water flows off the land. Does it collect around the house or move to the street?  Pooling may indicate a potential basement problem. The longer water problems from poor maintenance continue, the greater the cost of repairing the damage. Paint may camouflage the trouble, but the problem will persist.
• Drive by houses after a fresh snowfall and you'll discover which are well insulated (snow on roof) and which are losing heat (melted snow).
• Tour a house on a very windy day and drafts, insufficient insulation, and poorly-sealed windows and doors will be revealed.
• Spend time in a house on a cold day and study how well the furnace heats the whole house. When a furnace is replaced, the duct work is not always adapted. Is it noticeably colder in the back rooms? How's the second floor and the bathrooms?
• During the holiday season when parties and cooking are popular pastimes tour condominium units and you'll see how far noise and smells travel in the building and into the suite or townhome you're considering.
• Ask an experienced real estate professional for their "best things" about "worst times".

Are you ready to turn "the worst times for home buying" into the best time for your successful real estate transaction?

Onward & Upward - the directions that really matter!


Written by PJ Wade

Nancy M. Alexander Stone Harbor and Avalon NJ Real Estate, Long & Foster Avalon