Vol. 5, No. 5, May 2008
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Real Estate 101
OPEN HOUSE
Nestled along the Jersey Shore is an exciting, bustling neighborhood with all the nostalgic charm of small-town America. Victoria Estates in Atlantic County’s historic Egg Harbor Township has been carefully positioned as a family-oriented community where neighborhood get-togethers are the norm.
“Victoria Estates offers the best of both worlds,” says sales representative Karen Porreca. “Residents enjoy the vibrant seashore community of Egg Harbor, but have the ability to escape into their beautifully-designed home in a classic, small town community.”
Homes of dramatic grace, flair and distinction define this prestigious community. Victoria Estates differs from surrounding neighborhoods because its architecture has the distinctive look of yesteryear. Enchanting design elements, like bay windows, turret and graceful front porches make this neighborhood unique.
Potential homebuyers can now purchase a new Iacobucci home with a choice of six floor plans, ranging from 2,338 square feet to almost 3,000 square feet. Choose from one of four distinct elevations on comfortably-sized and landscaped property starting from $345,990.
The purchase of a Victoria Estates home includes a $10,000 landscape and maintenance package. This package provides fully- sodded lawns, a plant package and an irrigation system.
Inside, you’ll find relaxed yet distinctive living with spacious floor plans, hardwood and ceramic tile floors, plush wall-to-wall carpeting in the living areas, and fireplaces with decorative mantels. Abundant windows let the light flood in, and tons of closets offer ample storage. Two-story foyers are standard in most models.
The kitchens include burnished 42-inch oak wall cabinets with crown molding, stainless steel sinks and Moen fixtures, with Corian/granite countertops optional.
Designer bathroom features include luxurious Jacuzzi soaking tubs, cultured marble vanity tops and oak vanities. Cathedral and tray ceilings are optional in the master suites.
Q &A with Vincent Daino, Northeast Community
with Vincent Daino, Northeast CommunityLending What’s the difference between a home equity loan and a home equity line of credit (HELOC)?
A HELOC is an open-ended loan with a variable rate that lets the borrower draw on the available balance and pay back on the balance while maintaining the entire line amount. In that way, it’s similar to a credit card. A home equity loan is closed-end, typically at a fixed rate. The borrower gets the entire loan up front and pays it back according to a fixed amortization schedule. Once money’s paid back, it can’t be accessed again short of refinancing the equity loan.
A HELOC works when the monetary need is not immediate, allowing borrowers to access the loan balance according to their own schedule. A home equity loan is best when borrowers know exactly how much money they need, and want the security of a fixed rate and regular repayments. Consult with a mortgage planner to decide which is best for you.
Adjustable rate mortgages have proven disastrous for many homeowners. Is there ever a good reason to take one?
Loan programs are neutral tools, but there are bad applications. If a borrower plans on being in a home for three years and can qualify for a 3-year or 5-year fixed rate adjustable with a lower interest rate, it may make sense. If a borrower wants to maximize cash flow from an investment property to reinvest in more property or for retirement, an ARM can be an entirely appropriate choice.
As yield curves return to normal ranges and the spread between ARMs and fixed rates widen, ARMs may return as a viable loan option for many borrowers.
Is it always better to put a big down payment on a home?
Money you put down immediately becomes “dead equity;” it stops growing. Place the minimum down and invest the difference in a safe and secure side investment account that will grow over time.
If a homeowner is “upside down” on his or her mortgage but can afford the monthly payment, is it a loss on paper only?
If the borrower is able make the payments, riding out the vagaries of the real estate market could be the best idea. People get caught up in their “equity position.” They should ask: Do I like my home? Does it fulfill the needs of my family for a safe, secure place to live? Do I like the schools and my neighbors?
Real estate markets go up and down. The market will recover in time, so if you can make the payments, relax and enjoy your life.
Vincent Daino is branch manager at Northeast Community Lending and host of The Mortgage Market Minute, Thursday at 5:30 p.m. and Sunday at 11 p.m. on NBC NewsCenter 40. For more information call 609-601-2988.
BY DESIGN
Thinking of installing a kitchen island? Make sure you have enough room.
At minimum, an island should be four feet long and slightly more than two feet deep. It must also have ample room for people to move and work around it—a minimum of 42 inches of passageway around the entire structure. So before unless you consider this popular kitchen feature, make your kitchen is at least eight feet deep and more than 12 feet long, or an island won’t add to your kitchen—it will cramp the space and limit function.
