Second mortgages on Brooklyn homes are used by people who need to access the equity on their homes. Here’s some information to help you decide if a second mortgage is right for you.

What is a Second Mortgage?

A second mortgage is taking out a second loan on top of the existing mortgage on your home. The collateral for the second mortgage is your home. The loan process is similar to getting a primary mortgage, including the need to pay for appraisals and closing costs.

The maximum amount of the second mortgage is determined by the equity in your home. The equity is the difference between what you owe on the home and the current fair market value of your home.

Why Get a Second Mortgage?

People take out second mortgages on their Brooklyn homes to:

• Finance home improvements
• Consolidate other debt for a lower monthly payment
• Pay for college tuition
• Invest in a business
• Pay medical bills
• Avoid paying for Private Mortgage Insurance

What Should I Consider Before Getting a Second Mortgage?

Taking out a second mortgage is a big risk because your home is your collateral on the loan. Second mortgages on Brooklyn homes are riskier for the lender, so they usually have a much higher interest rate than your first mortgage.

According to an article in the Wall Street Journal, almost 40% of homeowners who took out second mortgages are underwater on their loans. This is more than twice the rate of owners who didn’t take out second mortgages.

Make sure that you can afford the monthly payments as well as the costs associated with getting a second mortgage including the appraisal fee, closing costs, etc. Before signing on the dotted line, investigate financially safer alternatives such as refinancing, selling or renting out.

If you’re considering getting a second mortgage, please think it through very carefully and weigh all your options before making a final decision.

If you’d like help determining if refinancing, selling or renting out your home is the best option for you, give me a call Charles D’Alessandro Your Brooklyn real estate agent with Fillmore Real Estate at 718/253-9600 ext 206 or email me at [email protected],

What to do with those Outdated Items in your Brooklyn Home

If your Brooklyn home is starting to look like a landfill, you’re not alone. You’d like to get rid of all the old stuff you don’t use anymore, but you want to be responsible and don’t know where to take it, right?

Here are some of the most common obsolete items and ideas on what to do with them.

·        Technotrash: This is computer-related waste, VHS tapes, cassette tapes, CDs, DVDs and other obsolete accessories.  A company called GreenDisk can handle all your technotrash disposal needs by safely and securely destroying your old data, recovering reusable components, and recycling all of the rest of your accumulated technotrash.

• Old electronics: Also known as e-waste, this includes old appliances, TVs and monitors that contain valuable metals that can be recycled, along with other hazardous heavy metals that need to be handled responsibly. Many communities sponsor an E-waste Day, when everyone can bring their old appliances in for safe disposal. Some retailers have recycling programs where you can earn gift cards by trading in old electronics.
• Shoes: Don’t trash those outdated shoes or ones you just don’t wear anymore. Soles4Souls is a charity that wants all gently-worn shoes. You can find drop-off locations near your Brooklyn home. The shoes will be sent to people in need around the world.
• Old medicines: If you have medications that are past their expiration date or that you don’t want or need any longer, don’t flush them. Drugs are becoming a serious problem in water supplies and groundwater.  You can now buy a postage-paid envelope to responsibly dispose of many prescriptions and over-the-counter drugs. The Dispose My Meds program is an online resource to help you find local pharmacies that will take back expired or unwanted drugs.

Now that you know where to take your old obsolete stuff, you’re well on your way to getting your Brooklyn home clean and de-cluttered. If your next step is to get it on the market, I can help with that too! Contact me call today Charles D’Alessandro Your Brooklyn real estate agent with Fillmore Real Estate at 718/253-9600 ext 206 or email me at [email protected],

Save Money,Save Energy,Save The Earth

Saving money and saving the planet go hand-in-hand. It’s all about being thoughtful, creative, and into DIY – doing it yourself. Here are some ways you can save money, Save Money, Save Energy, Save the Earth at Your Brooklyn Home

• Be seasonal. Dress, cook and eat according to the weather. If it’s hot outside, dress accordingly, and keep the thermostat in the high 70s. Don’t use the oven in summertime; eat and drink cold fare. When it’s cold, wear a sweater, and keep the temperature in your Brooklyn home in the high 60s. Winter is the time to bake and to eat warm, hearty food.
• Use a clothesline. The clothes dryer is an energy hog. Let the sun and wind do it instead. Go ahead and fluff the wet laundry briefly in the dryer on the air fluff cycle before hanging it. You’ll be surprised how fast your sheets will dry, and how smooth your clothes come out, compared to the rumpled look they get from the dryer. And the truly fresh scent beats the cloying smell of fabric sheets any day.
• Keep air filters clean. Professionals recommend that you check the filters on the air conditioner and furnace in your Brooklyn home once a month, and clean or replace when needed. This will keep your heating and cooling systems working efficiently and extend their life.
• Grow your own. Farmer’s markets are great, but there’s nothing like going right outside the door of your own  home to get the freshest ingredients for your meals. Even if you’re an apartment dweller, you can grow fresh herbs (and more) in pots.
• Use cloth diapers. If you don’t want your child to live next to the disposable diaper landfill in 20 years, don’t create it today.
• Get rid of the gas-hog. Still driving an SUV or truck? Don’t be fuelish. Trade it in for a used car that gets over 30 mpg.

There are more money-saving tips to read on my blog. Subscribe for free today and get new tips automatically emailed to you.

Brooklyn New York Experiences Earthquake 2011

I was working in my office,( Fillmore Real Estate ) in Brooklyn New York when I felt my first earthquake!  News reports are still coming in, but the reports are the earthquake started in Virginia and has been felt up and down the East Coast.  News reporters are saying the magnitude of this earthquake is 5.8 which is very unusual for Brooklyn New York.

I asked myself ,what should I to do after an earthquake comes to your Brooklyn home.  Here are a few initial things you might want to to do after you make sure everyone in your household is safe:

•   Inspect gas lines
Check for gas leaks. If you smell gas or hear blowing or hissing noise, open a window and quickly leave the building. Turn off the gas at the outside main valve if you can and call the gas company from a neighbor’s home.  If you turn off the gas yourself, it should be turned back on by a professional.

•  Look for electrical system damage
If you see sparks or broken or frayed wires, or if you smell hot insulation, turn off the electricity at the main fuse box or circuit breaker.

•  Clean up
Make sure to clean up spilled medicines, bleaches, gasoline or other flammable or potentially toxic liquids immediately. Make sure to leave your home if you smell gas or fumes from other chemicals.

•  Inspect your chimney
Look at the entire length of chimneys for damage. Unnoticed damage could lead to a fire.  If you aren’t sure, get a licensed chimney sweep company out prior to using the chimney.

•  Check for sewage and water lines damage
If you suspect sewage lines are damaged, call a plumber and avoid using the toilets.  If water pipes are damaged, contact the water company and avoid using water from your tap.  Drink bottled water or melt ice cubes until you have a pro check it out .

•  Open cabinets cautiously Beware of objects that can fall off shelves.

Get additional tips from FEMA

If you need help determining if now is the best time to sell your Brooklyn home, call Charles D’Alessandro Your Brooklyn Realtor® with Fillmore Real Estate at 718/253-9600 ext 206 or email me at [email protected],

Marketing your Brooklyn Home For Sale By Owner

You’ve decided to try to sell your Brooklyn home for sale by owner (FSBO). One of the many tasks you’ll be performing is showing your home to potential buyers.  You won’t personally know most potential buyers, so be sure to take precautions to stay safe.  After all, these are strangers you’re allowing into your home.

Here are six tips to protect your safety when showing your Brooklyn home for sale by owner (FSBO) to potential buyers:

1. Pre-qualify potential buyers. The most basic thing you want to do is determine if a potential buyer can afford to buy your home.  The best way to do this is to require that the potential buyer give you a copy of their pre-approval letter before scheduling a viewing of your home.  Buyers who are not serious about buying within the next few months will not have bothered to get pre-approved, and buyers who cannot afford your home will not be able to get a pre-approval letter.

2.      Use a sign-in sheet. Keep a sign-in sheet near the entrance to your home.  Have everyone who comes to view your home fill out his or her name, address and phone number on the sheet as soon as they enter.

3.      Stay with them while they tour your home. While you don’t want to hover over their shoulders, don’t allow them to wander around your home by themselves.

4.      Have someone else with you. Don’t be home alone.  Have your neighbor, a friend or family member with you at all times.

5.      Hide valuables. Do not leave money, jewelry or other valuables where they can be seen or easily taken.

6.      Require an appointment. Whether you’re selling your home as a FSBO or with a  real estate agent  requiring an appointment allows you to keep a normal schedule.  You don’t want people touring your home while you’re eating dinner or taking a nap.   If a buyer is really interested, he or she will not have a problem making an appointment.

Want help marketing your Brooklyn home for sale by owner?  Give me  Charles D’Alessandro Your Brooklyn Realtor® with Fillmore Real Estate a call today at (718) 253-9600 ext 206 or email me at [email protected].  I’ll give you a free home market price  analysis to determine how much your home is worth in today’s market.

For Sale By Owner and your Brooklyn Home

Buying a Brooklyn home for sale by owner (FSBO) has benefits and drawbacks. Analyzing the pros and cons of buying a home directly from the homeowner can help you decide whether this is the best move for you.

Pros of buying a FSBO

• You get the house you want. If the home of your dreams happens to be a  Brooklyn home for sale by owner, don’t worry.  You can still have your Brooklyn real estate agent represent you while buying the home.  That way you get the home you want with a knowledgeable agent looking out for your best interests and helping you get the best price and terms.
• Sellers may price their homes too low. In their eagerness to sell their homes, sellers may offer their homes at prices lower than the market value.  But, don’t count on this because the typical FSBO is priced at or higher than the market average.
• You can communicate directly with the owner. You and your Brooklyn real estate agent don’t have to go through a third party (the seller’s agent) to negotiate with the seller.

Cons of buying a FSBO

• Sellers want to maximize profits. Why do owners decide to sell their homes as FSBOs?  It’s usually because they believe they can maximize their profits by not paying a listing agent to sell their homes.  They’re not doing it so they can give the buyer a great deal.   If you’re thinking you can pay less for a FSBO than for a home listed through a real estate agent, think again.  Statistics show that you pay as much or more for FSBOs, especially if you purchase it without the help of a real estate agent who is a skilled negotiator.
• Homeowners may withhold important information. Even though homeowners are required by law to disclose any information that would impact the buyer’s decision to purchase the property, they may not.  They may intentionally withhold the information to get you to buy the house, or they may unintentionally withhold the information because they don’t know that it’s the law.
• Difficult negotiations. Sellers may refuse to lower the price of their homes, even if the homes are overpriced, or they may not want to pay for needed repairs.  The home owner is also more personally connected to the property than a real estate agent would be and therefore may be more sensitive to any form of critique.

Whether you want to buy a  Brooklyn home for sale by owner or a home listed with a real estate agent, I can help you get the best terms and price.  I’ll also look out for your best interests and make sure all the i’s are dotted and t’s are crossed.  If that sounds good to you, Charles D’Alessandro Your Brooklyn Realtor® with Fillmore Real Estate a call today at (718) 253-9600 ext 206 or email me at [email protected]

Charles D'Alessandro Your Brooklyn Realtor®

91. HOW CAN I RECEIVE A DISCOUNT ON THE FHA INITIAL MORTGAGE INSURANCE PREMIUM?

Ask your Brooklyn real estate agent or lender for information on the HELP program from the FHA. HELP – Homebuyer Education Learning Program – is structured to help people like you begin the homebuying process. It covers such topics as budgeting, finding a home, getting a loan, and home maintenance. In most cases, completion of this program may entitle you to a reduction in the initial FHA mortgage insurance premium from 2.25% to 1.75% of the purchase price of your new home.

92. WHAT IS PMI?

PMI stands for Private Mortgage Insurance or Insurer. These are privately-owned companies that provide mortgage insurance. They offer both standard and special affordable programs for borrowers. These companies provide guidelines to lenders that detail the types of loans they will insure. Lenders use these guidelines to determine borrower eligibility. PMI’s usually have stricter qualifying ratios and larger down payment requirements than the FHA, but their premiums are often lower and they insure loans that exceed the FHA limit.

FHA PRODUCTS

93. WHAT IS A 203(b) LOAN?

This is the most commonly used FHA program. It offers a low down payment, flexible qualifying guidelines, limited lender’s fees, and a maximum loan amount.

94. WHAT IS A 203(k) LOAN?

This is a loan that enables the homebuyer to finance both the purchase and rehabilitation of a home through a single mortgage. A portion of the loan is used to pay off the seller’s existing mortgage and the remainder is placed in an escrow account and released as rehabilitation is completed. Basic guidelines for 203(k) loans are as follows:

	The home must be at least one year old.
	The cost of rehabilitation must be at least $5,000, but the total property value – including the cost of repairs – must fall within the FHA maximum mortgage limit.
	The 203(k) loan must follow many of the 203(b) eligibility requirements.
	Talk to your lender about specific improvement, energy efficiency, and structural guidelines.

95. WHAT IS AN ENERGY EFFICIENT MORTGAGE (EEM)?

The Energy Efficient Mortgage allows a homebuyer to save future money on utility bills. This is done by financing the cost of adding energy-efficiency features to a new or existing home as part of an FHA-insured home purchase. The EEM can be used with both 203(b) and 203(k) loans. Basic guidelines for EEMs are as follows:

	The cost of improvements must be determined by a Home Energy Rating System or by an energy consultant. This cost must be less than the anticipated savings from the improvements.
	One- and two-unit new or existing homes are eligible; condos are not.
	The improvements financed may be 5% of property value or $4,000, whichever is greater. The total must fall within the FHA loan limit.

96. DELETED.

97. WHAT IS A TITLE I LOAN?

Given by a Lender and insured by the FHA, a Title I loan is used to make non-luxury renovations and repairs to a home. It offers a manageable interest rate and repayment schedule. Loans are limited to between $5,000 and 20,000. If the loan amount is under 7,500, no lien is required against your home. Ask your lender for details.

98. WHAT OTHER LOAN PRODUCTS OR PROGRAMS DOES THE FHA OFFER?

The FHA also insures loans for the purchase or rehabilitation of manufactured housing, condominiums, and cooperatives. It also has special programs for urban areas, disaster victims, and members of the armed forces. Insurance for ARMS is also available from the FHA.

99. HOW CAN I OBTAIN AN FHA-INSURED LOAN?

Contact an FHA-approved lender such as a participating mortgage company, bank, savings and loan association, or thrift. For more information on the FHA and how you can obtain an FHA loan, visit the HUD web site at http://www.hud.gov or call a HUD-approved counseling agency at 1-800-569-4287 or TDD: 1-800-877-8339.

100. HOW CAN I CONTACT HUD?

Visit the web site at http://www.hud.gov or look in the phone book “blue pages” for a listing of the HUD office near you.

If you would like to follow this series of questions and answers about buying your New Brooklyn Home Check it out here

If you’re looking for an experienced, energetic, resourceful  Brooklyn real estate agent or just have a few questions, give me Charles D’Alessandro your Brooklyn Realtor® with Fillmore Real Estate a call at (718) 253-9600 ext.206 or email me at [email protected]

The winner receives a $100 gift card to The Burger Bistro. Thank you to The Burger Bistro of Brooklyn New York for partnering with Charles D’Alessandro  your Brooklyn  Realtor® of Fillmore Real Estate to sponsor this photo contest. Visit The Burger Bistro’s website to see the menu and discover all the delicious food you can purchase if you win the $100 gift card. Start By Clicking Here .

73. WHAT ARE THE STEPS INVOLVED IN THE FHA LOAN PROCESS?

With the exception of a few additional forms, the FHA loan application process is similar to that of a conventional loan (see Question 47). With new automation measures, FHA loans may be originated more quickly than before. And, if you don’t prefer a face-to-face meeting, you can apply for an FHA loan via mail, telephone, the Internet, or video conference.

74. HOW MUCH INCOME DO I NEED TO HAVE TO QUALIFY FOR AN FHA LOAN?

There is no minimum income requirement. But you must prove steady income for at least three years, and demonstrate that you’ve consistently paid your bills on time.

75. WHAT QUALIFIES AS AN INCOME SOURCE FOR THE FHA?

Seasonal pay, child support, retirement pension payments, unemployment compensation, VA benefits, military pay, Social Security income, alimony, and rent paid by family all qualify as income sources. Part-time pay, overtime, and bonus pay also count as long as they are steady. Special savings plans-such as those set up by a church or community association – qualify, too. Income type is not as important as income steadiness with the FHA.

76. CAN I CARRY DEBT AND STILL QUALIFY FOR FHA LOANS?

Yes. Short-term debt doesn’t count as long as it can be paid off within 10 months. And some regular expenses, like child care costs, are not considered debt. Talk to your lender or real estate agent about meeting the FHA debt-to-income ratio.

77. WHAT IS THE DEBT-TO-INCOME RATIO FOR FHA LOANS?

The FHA allows you to use 29% of your income towards housing costs and 41% towards housing expenses and other long-term debt. With a conventional loan, this qualifying ratio allows only 28% toward housing and 36% towards housing and other debt

78. CAN I EXCEED THIS RATIO?

You may qualify to exceed if you have:

	a large down payment
	a demonstrated ability to pay more toward your housing expenses
	substantial cash reserves
	net worth enough to repay the mortgage regardless of income
	evidence of acceptable credit history or limited credit use
	less-than-maximum mortgage terms
	funds provided by an organization
	a decrease in monthly housing expenses

79. HOW LARGE A DOWN PAYMENT DO I NEED WITH AN FHA LOAN?

You must have a down payment of at least 3% of the purchase price of the home. Most affordable loan programs offered by private lenders require between a 3%-5% down payment, with a minimum of 3% coming directly from the borrower’s own funds.

80. WHAT CAN I USE TO PAY THE DOWN PAYMENT AND CLOSING COSTS OF AN FHA LOAN?

Besides your own funds, you may use cash gifts or money from a private savings club. If you can do certain repairs and improvements yourself, your labor may be used as part of a down 8 payment (called -sweat equity”). If you are doing a lease purchase, paying extra rent to the seller may also be considered the same as accumulating cash.

If you would like to follow this series of questions and answers about buying your New Brooklyn Home Check it out here

If you’re looking for an experienced, energetic, resourceful  Brooklyn real estate agent or just have a few questions, give me Charles D’Alessandro your Brooklyn Realtor® with Fillmore Real Estate a call at (718) 253-9600 ext.206 or email me at [email protected]