Closing Costs in Arizona

One of the most frequent questions we are asked by both  Buyers and Sellers  is what can I expect to pay in closing costs?

We break it down for you below. You are lucky you are closing on a home here in Arizona where closing costs are considerably low and there are no Lawyer fees to pay. Watch our 3 minute video to learn why…

What the Buyer can expect to pay in closing costs:

  • Down payment
  • Title Insurance Premium for Lender’s Policy
  • Appraisal Fee
  • Credit Report
  • Inspection Fees (roofing, property inspection, geological, termite, etc.)
  • Loan Origination Fee
  • Points paid to lower interest rate (if applicable)
  • Escrow Fee (1/2)
  • Document Preparation
  • Notary Fees
  • Recordation Fees
  • Tax proration (from date of acquisition)
  • Homeowners Transfer Fee
  • All new loan charges (except those required by Lender for seller to pay) interest on new loan from date of funding to 30 days prior to first Payment date Assumption/Change of Records fees for takeover of existing loan.
  • Inspection Fees (roofing, property inspection, geological, termite, etc.)
  • City Transfer/Conveyance Tax (according to contract)
  • Hazard Insurance Premium for first year
  • impounds and interest on new loan
  • Fire insurance premium for first year
  • Home warranty
  • Private Mortgage Insurance (PMI, if applicable)
  • Hazard Insurance Premium for first year

What the Seller can expect to pay in closing costs:

  • Real Estate Commission
  • Document preparation fee for Deed
  • Payoff of all loans in seller´s name (or existing loan balance if being assumed by buyer)
  • Interest accrued to lender being paid off, Statement Fees, Reconveyance
  • Fees and any prepayment penalties.
  • Any judgments, tax liens, etc., against the seller.
  • Tax pro-ration (for any taxes unpaid at time of transfer of title)
  • Any unpaid Homeowners dues
  • Any bonds or assessments (according to contract)
  • Any and all delinquent taxes

 


 

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Are You Ready to Take Your Winnings Off The Table?

So you bought a property in Phoenix
within the last five or six years.

 

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That means you’ve seen an appreciation of 20-30% depending on your area and when you bought.

In addition, the USD$ has gone up 25% vs. CAN$ in the last 6 months.

That means you are looking at a potential of 65% gain on your money!

Congratulations!

If you’re ready to get out of the US Real Estate game with a nice stack of chips, its time to liquidate your assets and the Arizona Home Group is here to help.

The Spring is the best selling season and now is the time to go on the market.


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Why Have Mortgage Interest Rates Dropped?

The headlines agree mortgage interest rates have dropped substantially below initial projections. Many who are considering purchasing a home, or moving up to their dream home, might think that they should wait to buy, because rates may continue to fall.

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A recent article on the Economists’ Outlook blog by the National Association of REALTORS® (NAR) provides insight into one major factor in the decline in interest rates, the crude oil price.

“As of January 5, 2015, the U.S. Energy Information Administration (EIA) reported that the price of regular gasoline was $2.20/gallon, the lowest since gas prices peaked to about $ 4/gallon in May 2011.”

You may have noticed that filling your gas tank has become substantially less expensive in recent months. A welcome change from the close to $5 a gallon that many Americans were paying this time last year. The average US household is projected to save around $550 in 2015.

So what does that have to do with Interest Rates?

NAR explains the correlation like this:

“Lower oil prices mean lower inflation rate, which pushes down mortgage rates.”

Based on Freddie Mac’s weekly mortgage survey as of January 22, 2015, the 30-year fixed rate averaged 3.63% and the 15-year fixed rate averaged 2.93%.

“The decline in oil prices is generally positive to households by way of the gas savings and lower mortgage payments. That savings will boost consumer spending in other areas. But there may be some layoffs in oil-producing states.”

How long will rates stay low?

No one really knows how long oil prices will continue to support low mortgage rates. In a New York Times article, the author points to the fact that “adding hundreds of billions of dollars to consumer spending” could start to have a “counter effect” on rates as the economy continues to strengthen.

“If firms start hiring again, and wages increase — that’s when the level of all interest rates in the U.S. would increase.” 

Don’t wait too long

The low interest rates we are currently experiencing are not going to stay around forever. The current projections from Freddie Mac, Fannie Mae, NAR and the Mortgage Bankers Association all agree that interest rates will increase to between 4.3-5.4% by the end of 2015.

Bottom Line

NAR reports: “At the median home price of $205,300, a 0.75 percentage point drop in mortgage rates will yield savings of about $1,000 annually.”

If you are in a position to buy a home make sure that you meet with the Arizona Home Group who have their finger on the pulse of what’s going on in the market. Don’t let a delay in purchasing impact your family’s financial future.


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14,164 Homes Sold Yesterday! Did Yours?

There are some homeowners that have been waiting for months to get a price they hoped for when they originally listed their house for sale. The only thing they might want to consider is… If it hasn’t sold yet this fall, maybe it’s not priced properly.

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After all 14,164 houses sold yesterday, 14,164 will sell today and 14,164 will sell tomorrow.

14,164!

That is the average number of homes that sell each and every day in this country according to the National Association of Realtors’ (NAR) latest Existing Home Sales Report. NAR reported that sales are at an annual rate of 5.17 million. Divide that number by 365 (days in a year) and we can see that, on average, over 14,100 homes sell every day. Sales are at the highest pace of 2014.

We realize that you want to get the fair market value for your home. However, if it hasn’t sold in today’s active real estate market, perhaps you should reconsider your current asking price.


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Have You Been Thinking Of Selling? Now May Be The Time

It is common knowledge that a large number of homes sell during the spring buying season. For that reason, many homeowners hold off putting their home on the market until then. The question is whether or not that will be a good strategy this year.

The other listings that do come out in the spring will represent increased competition to any seller. Do a greater number of homes actually come to the market in the spring compared to the rest of the year? The National Association of Realtors (NAR) recently revealed which months and days of the year most people list their home. Here is a graphic showing the results:

Now_Time_to_sell

The circles represent the ten most popular listing dates in 2014. We can see that all ten days are in the second quarter of the year. The months in red represent which months most people put their home on the market. Again, the three months in the second quarter are most active for listings. Last year, the number of homes available for sale in January was 1,880,000.

That number spiked to 2,350,000 by July!

What does this mean to you?

With the job situation improving and mortgage interest rates projected to rise later in the year, buyers are not waiting until the spring. They are out looking for a home right now. If you are looking to sell this year, waiting until the spring to list your home means you are putting your house on the market at a time you will have the greatest competition for your buyer. It may make sense to beat that rush of housing inventory to the market and list your home today.


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Attaining the American Dream

We realize that homeownership makes sense for many Americans for an assortment of social and family reasons. It also makes sense financially.

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Heading into 2015 many people have their sights set on buying a home. The personal reasons differ for each buyer, with many basic similarities. Eric Belsky, the Managing Director of the Joint Center of Housing Studies at Harvard University expanded on the top 5 financial benefits of homeownership his paper – The Dream Lives On: the Future of Homeownership in America.

Here are the five reasons, each followed by an excerpt from the study:

1) Housing is typically the one leveraged investment available.

“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”

2) You’re paying for housing whether you own or rent.

“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.”

3) Owning is usually a form of “forced savings”.

“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

4) There are substantial tax benefits to owning.

“Homeowners are able to deduct mortgage interest and property taxes from income…On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”

5) Owning is a hedge against inflation.

“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”


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