Home Exchange Programs - New Section of Website

If you've seen the recent film with Kate Winslet and Jack Black called "The Holiday," then you're probably familiar with the concept of a home exchange for vacation purposes. The entire story in that film was about around the exchanging of homes between key characters.

Because of such coverage, home exchange programs are becoming increasing popular. Here's how they work. Basically, it's a way for two people to swap homes (and sometimes cars as well) for a short period of time for the purposes of vacation.

The participants will use a home exchange website to make it all happen. For example, I live in Austin, Texas. So if I wanted to take a vacation to Italy, I would log into my home swapping / exchange website to try and find somebody in Italy looking for a vacation in Texas.

If I didn't come up with any active postings, I could post my own "seeking a home exchange with Texas" notification in the proper section of the website. Then, if somebody on the other end (in Italy) were browsing the website, they could find my post ... and perhaps be interested in swapping homes with me for a vacation period.

Home Exchanging 101

We are pleased to announce that we have created a new section of the Home Buying Institute website and are currently filling it up with advice and articles on home exchange programs. You can also sign up for an exchange service (website) through the new section we have built.

Check out the new section here:
Home Exchange Programs 101

Mortgage Loans 101: All About Mortgage Terms

The term of a mortgage refers to the number of years the mortgage is established for. Mortgage terms are generally 15, 20, 30 and 40 years. The vast majority of mortgages are 30-year mortgages.

When considering the term of the mortgage to apply for, keep in mind that only highly qualified applicants will be approved for 15 and 20 year mortgages. These shorter term mortgages have substantially higher payments, but the homeowner can save hundreds of thousands of dollars over the life of the mortgage by paying less interest.

Benefits of Short-Term Loans
Those considering a 15 or 20 year mortgage in order to save interest in the long-term can also apply for, and obtain, a 30-year mortgage and make additional payments towards principle. Remember to find out precisely how to make these extra payments. Some lenders take the extra payment and apply it to the following month's payment rather than directly towards principal. Others will apply it toward the principal, so find out what you need to do to apply it properly.

Also, keep in mind that most real estate contracts will have a mortgage contingency clause that gives you an "out" in case you are not approved for your mortgage. In most cases, the contingency clause is based on your ability to be approved for a 30-year, fixed-rate mortgage, so failure to get a 15, 20 or 40 year mortgage would not be sufficient grounds to terminate the contract and get your down payment back.

New, Longer-Term Mortgages
40-year mortgages do exist, and some lenders are even offering 50-year mortgages. These longer term mortgages will lower your monthly payment, but they will also result in a much higher life-time payment since you are paying interest over an additional 10 or 20 years. These mortgages are popular with those homebuyers who need to keep their initial payments low and expect to refinance down the road.

The Adjustable Rate Mortgage
Added to all of this talk about terms is the fact that you may also apply for an adjustable rate mortgage, or ARM. These mortgages are generally 30 years long. The ARM starts with fixed-rate interest for the initial period (generally 3, 5 or 7 years) and then becomes adjustable rate (based on prevailing rates at the time) for the remainder of the term.

What Terms are Right for You?
The right mortgage term for you will depend on your unique circumstances. That's why it's important to have a realistic idea of your future plans and discuss them with your mortgage lender. Ask for amortization schedules so you can see the difference in monthly payments and overall payments based on the various mortgage terms available to you. An informed decision is the best decision.

* Copyright 2006, Brandon Cornett. You may republish this article if you keep the byline and author's note, and also leave the hyperlinks active.

About the Author
Brandon Cornett is publisher of Home Buying Institute, the Internet's largest library of home buying advice. You can learn more about home mortgage loans by visiting http://www.homebuyinginstitute.com

Round Rock Real Estate - A Great Texas City

I've been writing and publishing these real estate city profiles for some time now, but this profile of Round Rock, Texas is a special treat for me. That's because (A) I live in Round Rock and (B) the city is growing in size and popularity.

But don't take my word for Round Rock being a great place to work and live. Here's what some others have said on this subject:

• In 2006, CNN Money published its yearly list of "Best Places to Live" in the United States -- a list of 100 cities that stand out in terms of quality of life, housing costs, education, climate and other factors. The city of Round Rock appeared at #48 on that list.
• In that same year, Kiplinger's Personal Finance Magazine included Round Rock in its top 25 cities that were a smart investment for home buyers.
• A 2007 survey by CQ Press found Round Rock to be the 13th safest city in all of the U.S. based on per capita crime rates.
• In 2008, Entrepreneur.com published a piece that ranked some of the "Best and Worse Places to Buy a House" in the United States. Here too, Round Rock showed up on the list. This time it was listed right up top.

So what does all this favorable coverage mean? It means that (A) people across the country are recognizing Round Rock as a great place to buy real estate, (B) the city will continue growing as a result of such coverage, and (C) Round Rock real estate will probably remain a solid investment for years to come.

So anyone planning to buy real estate in the Round Rock area has plenty of supporting information to base that decision on.

Round Rock Real Estate - My Own Top 10

Everyone has his or her own preferences when it comes to places to live, work and play. So while this Central Texas city clearly appeals to many, it certainly won't appeal to all. With that being said, here are some of the things I like about Round Rock.

1. The location. The city is located just a few miles north of Austin, the capital of Texas and the unofficial Live Music Capital of the World. Round Rock also marks the start of what's known as Texas Hill Country, which offers rolling hills and beautiful scenery.

2. The real estate prices. Every once in a while Austin will appear on one of those real estate values TV shows, such as "What You Get for the Money." It's usually to show how far the real estate dollar goes in Austin, when compared to high-price cities like San Diego. Round Rock (Austin's northern neighbor) is even more affordable than Austin, so you really can get a lot for the money here when compared to other cities.

3. The activities. There's plenty to do in Round Rock, Texas. You'll find hike and bike trails all over Williamson County, plus an abundance of parks and recreation facilities. Williamson County Regional Park is a massive facility with eleven soccer fields, two softball fields, a football field circled by a 400-meter track, eight tennis courts, six basketball courts and more. And the world-famous Austin nightlife is only a few miles south.

4. The schools. The public schools here are managed by the Round Rock Independent School District, or RRISD. This district has a solid reputation with performance numbers higher than the national average.

5. The bats. The Austin bats under the Congress Avenue Bridge are world famous. But Round Rock also has a large colony of Mexican free-tail bats living under certain bridges. At dusk, it's quite the spectacle to see these bats emerge by the thousands. Thanks to these bats, there aren't many mosquitoes in Round Rock!

6. The climate. Like most of Central Texas, Round Rock has mild winters with snow being a rarity. Spring is a joyous time in Round Rock, with a vast array of Texas wildflowers (such as the bluebonnet) sprouting up along the roads and in fields. The summers are hot but not unbearable, with only mild humidity as compared to coastal Texas.

7. The shopping. When a city has good shopping opportunities, it typically has a positive effect on real estate values. Such is the case with Round Rock real estate values, thanks to the addition of an IKEA store and the Round Rock Premium Outlets (among other things).

8. The highway improvements. Texas spent a lot of money on highway improvements over the last few years, and much of this took place in the greater Austin area, including the city of Round Rock. As a result, the traffic situation in Round Rock (which used to be a nightmare) has improved considerably — and it continues to do so.

9. The people. There's a unique mix of people living in Round Rock, Texas. We have an interesting mix of yuppies, students from University of Texas, politicians who work at the nearby state capital, the computer-minded folks from Dell, the cowboys and ranchers who've lived here for decades ... you name it. In that regard, Round Rock is a cosmopolitan type of city.

10. The water. Living in Round Rock, you'll have easy access to many bodies of water that offer boating, fishing, tubing, kayaking and more. There are lakes all throughout the area, as well as rivers, creeks and streams.

I hope you've found this city profile of Round Rock, Texas both interesting and helpful. It's truly one of America's great cities.

Brandon Cornett is the publisher of City Pages, which provides information about U.S. cities from a real estate and lifestyle perspective. Learn more about real estate in Round Rock and many other great cities at http://www.theagentnet.com

The Real Estate Short Sale Explained

Lately, we have been receiving a lot of home buying questions about the real estate short sale process. Actually, the questions are coming from two groups -- the buyers who view it as a possible investment opportunity, and the sellers who view it as a way to avoid foreclosure.

Both sides are correct. When used properly, a real estate short sale can help the homeowner in financial trouble avoid a home foreclosure. The short sale can also be a good investment opportunity for the savvy investor who knows how the process work.

So what is a short sale anyway, and how could it possibly help the lender, the homeowner and the buyer at the same time? This is a question we have addressed in a new article posted to Foreclosure City. Check it out below:

What is a Real Estate Short Sale Anyway?

Of course, it's not all sunbeams and rainbows. As with anything else in the world of real estate (sadly), there are people out there who take advantage of homeowners in financial distress. So here's my take on the subject...

Yes, the short sale process can help certain types of homebuyers in certain situations -- such as those who are facing foreclosure with no hope of getting caught up on their mortgage payments. But this type of process also attracts some sharks, so you need to be a smart consumer ... and that means doing plenty of research.

Here are some places to start your research:

• Wall Street Journal weighs in
• Washington Post offers some insight

Home Buying Tools Online

The Internet has made the home buying process a lot more efficient. At least, if you know where to go for the best home buying tools and services.

But for many home buyers, the Internet is a vast and confusing place with enough real estate websites to make your head spin. To a certain extent, this is true. There truly is a dizzying array of home buying tools available online these days. But once you narrow down your list of web-based tools to a half-dozen or so, you can harness the power and efficiency of the Internet without being overwhelmed in the process.

I'd like to help you achieve this by offering a short list of some of the most popular (and useful) real estate sites online today. Hopefully these home buying tools will make your experience more efficient and more successful.

1. For Requesting Your Credit Reports

Yes, I said credit reports, in the plural sense. Did you know you actually have three credit reports, one for each of the credit-reporting bureaus? It's true, and lenders will review all three of them (or a composite score) when considering you for a mortgage loan.

So one of the most important steps in the home buying process is to request copies of your credit reports and scores so that you can (A) review them for errors / inaccuracies and (B) see where you stand in terms of good or bad credit.

By law, you are allowed to obtain your credit reports for free once per year. There are hundreds of websites online that offer your free credit reports, and the choice can be confusing. But here's the big "secret" ... most of these websites, if not all of them, pull your report from the source. In other words, they all get your credit reports from the three bureaus -- Experian, TransUnion and Equifax.

Credit.com is one of these trustworthy websites where you can request all three reports and scores at once:

* Credit.com

2. For Home Shopping / Property Listings

Here's the thing about websites offering property listings. Most of them get their data from one of two places -- either from the Multiple Listing Service (MLS), or from the real estate brokers themselves.

In the past, you really only had one or two places to go online for property listings data. Realtor.com was one of these sites. And while it's still a good place to go for home listings, there are quite a few other options as well. In fact, this is an area that has really exploded in recent years. These days, there are hundreds of websites that compile property listings and then allow people to search those listings by area, price, etc. Thus, they are very helpful home buying tools for buyers. Here are some of the more popular sites:

* Redfin.com
* Trulia.com
* HomePages.com
* RealEstate.Yahoo.com

These are some of the major / national websites with real estate listings. Obviously, you can also get local property listings from real estate agent websites in your area, as most agent websites tap directly into the MLS data.

3. For Finding a Mortgage Online

Okay, now we are getting into an area that has seen a lot of shuffling (and disaster) over the last couple of years. Many of the online mortgage companies were affected by the subprime mortgage crisis that came to a head in 2007.

For example, at the time of this article writing, the Ameriquest home page has a message that basically says, "We are closed until further notice." On top of that, Countrywide Home Loans (another of the larger web-based mortgage companies) was recently sold to Bank of America.

With that said, there are still quite a few websites online where you can get mortgage quotes from multiple lenders at once. Obviously, this kind of home buying tool can save time and energy, as well as giving you a broader range of mortgage products to choose from. My advice is to stick with the names and websites you know, if only to ensure that your private information is protected.

Here are some of the websites left standing after the mortgage lender shakedown:

* LendingTree.com
* Eloan.com
* Ditech.com
* QuickenLoans.com

4. For Tracking Foreclosures Online

We just talked about the mortgage crisis that came to a head in 2007. Going into 2008, we are still feeling the effects of this fiasco, and we probably will be for a couple more years. As a result of the subprime mortgage meltdown, there are more foreclosure properties on the market than ever before. These foreclosures represent opportunity for the savvy real estate investor.

You see, when a bank forecloses on a home, they want to sell it off as quickly as possible. Banks are lenders -- they are not property managers. So they will typically sell the foreclosed home as soon as possible, often through a real estate auction. At a property auction, the smart real estate investor can often get a home for less than market value.

Of course, you have to know about foreclosure properties before you can evaluate them and possibly bid on them. That's why we have seen a rise in the number (and sophistication) of foreclosure-tracking websites. These web-based services will keep track of foreclosure activity in your area and send you notification emails about new foreclosures.

In this area, there are a couple of giants and a handful of "lesser" websites. Here are the giants:

* Foreclosure.com
* RealtyTrac.com

(There's also a Foreclosures.com, with an 's' at the end. But don't be confused ... the first one listed above is a much better service with more data, at least in my experience.)

5. For General Home-Buying Information

All of the websites listed above are specific in nature. That is, they pertain to one aspect of the home buying process -- such as ordering your credit report, shopping for a loan, finding a home, and tracking foreclosures.

But what about the general information websites?

Fortunately, there is not shortage of these websites either. Actually, there are hundreds of websites online that I would label as "comprehensive" in terms of the information they provide. Here are a few of the most useful and informative sites:

* HUD.gov/buying
* HomeBuyingInstitute.com
* Homebuying.About.com

Conclusion and Summary

So there you have it, my list of the most helpful home buying tools available online today. Of course, with the rapidly evolving nature of the Internet, new websites come online all the time. But the ones listed above are a great place to start! Good luck with your real estate experience.