Real Estate Information Archive

There was a time when there were three mortgage loan types available to home buyers. You could get a Fixed-Rate Conventional Mortgage, an FHA Loan or a VA Loan. But times, they are a changin’.  Now there is a vast array of mortgage loan types to be had!  Let’s learn about some of them, and the differences between them.

We will start with the most popular:

• FIXED-RATE MORTGAGES​
  
  These loans come in 5-year, 10-year, 15-year, 20-year, 30-year, 40-year, and even 50-year timeframes. The interest rate remains the same for the duration of the loan, meaning monthly payments are predictable.

• FHA LOANS​

FHA Mortgage Loan types are insured by the government through mortgage insurance that is funded into the loan. This is an ideal loan type for first-time buyers because it has minimal down payment requirements and does not rely on credit scores for approval.

• VA LOANS​

VA loans are government loans available to veterans who have served in the Armed Forces for the United States. They are also available to spouses of deceased veterans in some cases. The requirements depend upon the years of service and whether or not the veteran was honorably discharged or not. The primary benefit of a VA Loan is that the borrower does not have to come up with a down payment. The loan is guaranteed by the Department of Veterans Affairs but funded by a conventional lender.

• USDA LOANS

USDA Loans are offered through the U.S. Department of Agriculture for eligible home buyers who want to buy a rural property. They often come with no down payment required and can sometimes be more affordable than an FHA loan.

• INTEREST-ONLY MORTGAGE TYPES

This name is a bit misleading, as these loans are not truly interest-only in terms of the borrower only paying interest on the loan. The reality of the interest-only mortgage is that it offers an option to make an interest-only payment. This option is only available for a set period of time. However, there are some junior mortgages that are interest-only and necessitate a balloon payment in the amount of the original loan balance at maturity.

Now, let’s take a look at HYBRID LOANS:

• ADJUSTABLE-RATE MORTGAGE TYPES
  
  There are various types of adjustable-rate mortgages (ARMS). They can fluctuate monthly, semi-annually, annually, or remain fixed for a set amount of time before they adjust.

• OPTION ARM MORTGAGE TYPES
  
  These types of loans are complicated. Like your standard ARM, the interest rate on them will fluctuate periodically, but in these loans, the borrowers can choose from various payment options and index rates.  WARNING: The minimum payment option can be dangerous as it can result in negative amortization.

• COMBO/PIGGYBACK MORTGAGE LOAN TYPES
  
  This is a type of financing that consists of TWO loans: a first mortgage and a second mortgage. They can be adjustable-rate, fixed-rate or a combination of both.  This option is used by borrowers when the down payment is less than 20% to avoid paying private mortgage insurance.

• MORTGAGE BUYDOWNS
  
  A mortgage buy down is a choice for borrowers who want to pay a lower interest rate in the beginning of their loan.  Basically, fees are paid to lower the rate, thus the name buydown. Buyers, sellers, or lenders can buy down the interest rate for the borrower.

Finally, Specialty Mortgage Loan Types:

• BRIDGE LOANS
  
  Bridge loans are used when a seller’s home has not yet sold and the seller wants to borrow equity to buy another home.  The seller’s existing home is used as collateral for the bridge loan.

• STREAMLINED-K MORTGAGE LOANS
  
  FHA has a program that provides money to a borrower to make home Improvements by rolling the funds into one loan. This is similar to the 203(K) Loan Program, but involves less paper work and is easier to get than a 203(K).

• EQUITY MORTGAGE LOAN TYPES
  
  Equity loans are second, or junior to the existing first mortgage. Borrowers take out equity loans to get access to cash. The loans can be adjustable, fixed, or a line of credit that allows the borrower to obtain funds on an as needed basis.

• SHARED APPRECIATION MORTGAGES
  
  These are rare in the United States, but shared appreciation mortgages allow home buyers to share part of their property’s value gains with an investor or lender. The guaranteed return to the lender means that the borrower will get a lower interest rate and lower monthly payment on the loan.

• REVERSE MORTGAGE
  
  This type of mortgage is for people over the age of 62 who have enough equity in their homes.  Instead of making monthly payments to the lender, the lender makes monthly payments to the borrower for the duration of their residence in the home. Reverse mortgages can be done with either fixed or adjustable interest rates. Please get advice from a trusted advisor before considering a reverse mortgage!

​If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs! Call them today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com/ for more info! 

1765 S Perry Street, Montgomery, AL 36104

MLS# 576527

3 Bedrooms | 4 Baths | 1 Half Bath | 4,250 Square Feet | Garden District

Sitting on over an acre in the Historic Garden District, this faded Grand Dame awaits a makeover! With over 4200 square feet, it's elegant entry and classic staircase invites you into large entertaining-sized rooms and banquet-sized kitchen. Living and dining rooms share a "wall" of windows overlooking covered rear loggia and expansive lawn. Main floor also has an attached guest apartment with kitchen, bathroom, and three additional rooms that hold endless possibilities for make-over ideas. Second floor boasts a sunny library/study, primary suite with large bath, double closets, and balcony overlooking the grounds. Two more bedroom suites, each with private bathrooms, finish out the upstairs (don't miss the third-floor walk-up attic providing endless storage and tons of potential for re-purposing.) At the rear of the house is another covered "entertaining" area with remnants of a full outdoor kitchen, the former pool house (pool was filled in years ago) and long-forgotten gardens. Bring your contractor and designer and make this old girl GRAND once more!

Marketed by Montgomery AL Realtor, Billy Young, Sandra Nickel Hat Team!

It’s a seller’s market in Montgomery right now. That means there are more buyers than homes available. So, it seems like the perfect time to list your house, right? Slow down. The market may be prime for selling, but you need to look at your personal situation. Before you put that for sale sign in your yard, it would be wise to consider all the factors that will determine if you are ready to sell.

Here are signs that you are ready to sell your house:

1. YOU HAVE POSITIVE EQUITY

It’s vital that you are financially prepared to sell your house. If you have built up equity, that means your home is worth more than you owe on it. Ideally you want to have enough equity to pay off your current mortgage and to make a down payment on a new home. It’s even better if you have enough to cover closing costs and moving expenses. If you don’t have positive equity, it may not be the best time to sell.

2. YOU HAVE CASH IN THE BANK AND ZERO DEBT

It’s important to have all your financial ducks in a row before selling your house. Remember, you’re not just selling a house, you are likely buying one as well. Take time to analyze your finances and budget. If you have paid off your non-mortgage debt and have funds saved, you are ready to enter the home selling/buying process again.

3. A HOME THAT BETTER SUITS YOUR NEEDS IS WITHIN REACH 

Perhaps you are downsizing, but you want a nicer home, or you are looking to move up into a larger home for your growing family. Either way, there is no point in selling your current home if you can’t afford a new one that better suits your needs. Remember that, ideally, your mortgage payment should be no more than 28% of your income.

4. YOU ARE AWARE OF THE EXTRA COSTS OF MOVING 

It’s exciting to get approved for a mortgage. Chances are you will get approved for more than you thought you would. But there is a lot to think about before deciding to sell. Remember that you will need to probably do some work on your house to get it ready to put on the market. You will also have to pay the moving expenses. Make sure consideration of these costs go into your decision-making process.

5. YOU ARE EMOTIONALLY READY TO SELL

Hopefully you are selling for the right reasons. You have to be ready to put the work into your home that it will take to sell it. You must be committed to keeping it “show ready” for as long as it takes. You must be prepared for what might be a tough negotiation. And finally, you need to be ready to let go of the home where you have created memories with your family.

6. YOU HAVE AN EXPERIENCED PROFESSIONAL REALTOR

Real estate transactions should be handled by experts. The professionals at Hat Team Realtors understand the market and can provide you with a clear picture of what goes into selling a house. Their advice will assist you in making this very important decision.

If you are in the market to buy or sell a home (or both), let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs! Call them today at 334-834-1500 and check out https://homesforsaleinmontgomeryalabama.com for more information!

One thing I think most people can agree on is that the life of a single parent is filled with challenges. One of the biggest challenges is having to manage finances on a single income. Many single parents may feel that being a homeowner is out of reach for them. But with rents going sky high, filling the pockets of a landlord when they could be investing in their own future just doesn’t make sense.

If you are a single parent and you think you can’t purchase a home, think again!  There are specialized loan options and assistance programs available to help single Moms and Dads become homeowners.  For example, you will find flexible mortgage qualification criteria, reduced down payment requirements and assistance with up front costs.

Here are some loan types, grants, and strategies that can make your dream of home ownership a reality:

HomeReady

The HomeReady loan, backed by Fannie Mae, is designed for low to middle income buyers, so it is a great option for single parents. You be able to make a down payment as low as 3% and it offers reduced private mortgage insurance costs, thus lowering you monthly mortgage payments. Another positive feature is that additional household income will be considered with this loan, such as contribution from roommates or renters, which will make it easier for single parents to qualify.

Home Possible

Freddie Mac has something called the Home Possible program. This is another wonderful option for single parents trying to save on the upfront costs of purchasing a home. With a down payment requirement of only 3%, the Home Possible program allows people with limited savings the ability to buy a home. In addition, this program allows non-occupant co-borrowers, such as a parent or other relative, to contribute on the mortgage application. This additional support may be exactly what a single parent needs to achieve home ownership!

FHA Loans

A popular choice for single parents with lower credit scores and/or minimal savings, FHA loans are government backed loans that require a down payment as low as 3.5% and are available to buyers with credit scores as low as 580. With lenient debt-to-income ratio requirements, it is an ideal option for single-income families. FHA loans also offer the security of predictable terms, something that single parents on a budget can really appreciate.

VA Loans

If you are an eligible veteran, active-duty service member or surviving spouse, VA loans can be very advantageous. No down payment is required with a VA loan, and therefore private mortgage insurance isn’t necessary. This will give you significant monthly savings on your mortgage. In addition, it provides other benefits like limits on closing costs and competitive interest rates. A VA loan is an awesome choice for single parents who have served in the military.

USDA Loans

USDA loans cater to buyers that want to live in rural or suburban areas. They offer 100% financing with no down payment required. It’s ideal for single parents seeking affordable housing outside of urban areas. They often feature lower mortgage interest rates and reduced mortgage insurance premiums. All-in-all it is a budget-friendly option for families!

Conventional Loans

Another viable option for single parents who have high credit scores is a conventional loan. This loan requires as little as 3% down and offers competitive interest rates. They are different from government-backed loans in that they offer more flexibility in terms of property type and loan limits. A conventional loan can be a great choice for single moms and dads.

There are also grants available for first-time home buyers who are single parents. They provide funds that do not need to be repaid which help to pay for costs like down payments and closing costs. There are state and local programs that offer grants specifically for first-time buyers based on income, location and family size. This can be a life-changing resource for single moms and dads, allowing them to purchase their first home.

The idea of purchasing a home as a single parent can seem overwhelming.  But with careful planning and preparation, it can be done. Don’t rush things. Take the time to assess your financial situation, including your income, debt, and credit score.  Research loan options and assistance programs and find the one that best suits your needs.  The first step is to get pre-approved with a trusted lender, which will not only allow you to figure out your budget for a home but will also demonstrate to sellers that you are a serious buyer.

Most importantly, work with an experienced, Professional Realtor like Sandra Nickel who understands the unique challenges of buying a home as a single parent. With the right Realtor and resources, you will find the perfect home to meet your budget and your family’s needs.

If you are in the market to buy or sell a home (or both), let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs! Call them today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information!

3123 Woodley Terrace, Montgomery, AL 36106

MLS# 574537

3 Bedrooms | 3 Baths | 2,048 Square Feet | Woodley Terrace

Welcome to 3123 Woodley Terrace, a delightful gem nestled on a peaceful street! As you approach, the beautiful azaleas will be the first thing to catch your eye! Step inside to see the beautifully refinished hardwood floors that flow throughout the first floor, complemented by unique detailing along the staircase. The updated kitchen features a stylish tile backsplash, elegant granite countertops, and custom cabinetry—perfect for both everyday meals and entertaining. This charming home offers two spacious bedrooms on the first floor, while the finished upstairs boasts a third bedroom and additional bathroom. This versatile space is ideal for children or a home office, providing plenty of room to grow. Outside, you’ll find a two-car garage and a nicely sized fenced yard, complete with a lovely stone walkway—perfect for your gardening ambitions or creating a nice space for outdoor gatherings. Recent updates include a new HVAC system and roof installed in 2022, along with fresh interior and exterior paint, refinished floors, and new carpet installed upstairs this year. Don’t miss the opportunity to make this Cloverdale charmer yours!

Marketed by Montgomery AL Realtor, Ali Bertschy, Sandra Nickel Hat Team!

3574 Bankhead Avenue, Montgomery, AL 36111

MLS# 574169

4 Bedrooms | 3 Baths | 3,134 Square Feet | Edgewood

If you are looking for plenty of room and awesomely cool mid-century modern vibes, this might just be what you have been searching for! This Loeb and Hannon custom built masterpiece has only had two loving families in its life, and while the kitchen has had some updating, the layout and bathrooms retain the original (and pristine) fixtures and tilework. The impressive living room has a vaulted ceiling and lots of windows overlooking the expansive front yard. Cool metal-work screen divides the living room space from the formal dining area. The large kitchen has plenty of counter and cabinet space, smooth surface stove, double ovens, and a spacious breakfast room. Enormous wood-paneled den also boasts vaulted volume ceiling, wall of adjustable display shelving, and newly installed extra-wide sliding glass doors opening to covered rear patio. Built for the original family, the wood paneled "boy's" room has private bath, walk-in closet, and large windows up the vaulted front ceiling for lots of natural light. The two "girl's" room share a long walk-through bath with double vanities and original pink fixtures! The rear primary bedroom is quite large and has his/her separate dressing rooms and closets, sharing a walk-in shower and WC. Off the primary bedroom and the den/family room is a covered porch that runs almost the full width of the house, plus a patio from grilling and relaxing. Backyard has raised beds for gardening, a detached storage building, and a chicken coop for fresh eggs! The front and back yards feature heirloom fig trees, peach trees, plum trees, varietal persimmon tree, and blueberry bushes just about to burst with fresh fruit. Treat yourself to a visit to this one-of-a-kind time capsule and you too will be smitten with its architecture and unique qualities.

Marketed by Montgomery AL Realtor, Billy Young, Sandra Nickel Hat Team!

Let’s face it, selling and buying a house at the same time can be very overwhelming and usually involves some element of risk. However, it is common for people to have to buy and sell at the same time. Per the National Association of Realtors, 71% of repeat home buyers still owned their previous residences, which means it’s highly likely that most of them were both buyers and sellers.

If you are lucky enough to time it right, you may hit that perfect “sweet spot” where you sell your house, make a profit that can be used for a down payment, and then find your next dream home, in that order. But chances are, things might not go as planned and hoped for.

Let’s look at some common challenges you might face, different avenues that might work better for you, and tips for getting through the process with your mental health intact.

FINANCIAL ISSUES

Chances are you might not have the amount of cash on hand that it takes to make a down payment on a house unless you sell your current home first. If you have found your new dream home and don’t want to risk losing it while waiting to sell, you have some options. You could do a cash out refinance on your current home, take out a home equity line of credit, or maybe sell some investments. But keep in mind that these options have costs and might not work for everyone.

LOGISTICS

With all the details and decisions that have to be made when both buying and selling a home, the logistics of doing both at the same time can be complicated. You have to think about the timing of the purchase and sale and negotiating with both the sellers of your new home and the buyers of your current home; all while trying to organize and pack for your move. An experienced Realtor is vital to help you navigate this process.

RISK OF LOSING HOME TO NON-CONTINGENT BUYER

Buying and selling at the same time comes with risks, one of which is moving forward with a purchase before you have sold your current home. To minimize this risk, many homeowners choose to make their offer on a house contingent upon the sale of their current home. But this brings about another risk, because there is a possibility that your offer may get turned down in favor of a buyer who has made a non-contingent offer. At that point you may have to decide whether you can remove the contingency, which may not be financially possible.

Now let’s look at some tips to help you navigate the buying-while-selling process:

• Determine Financial Feasibility – It’s time to take a good hard look at your monthly disposable income and to ask yourself these questions:

• Can you afford paying both mortgages?
• How long will you be able to afford doing so?
• Do you have enough available cash for a down payment?
• Will you have enough available for down payment after paying both mortgages for a “worst-case scenario” period of time?

If you are living paycheck to paycheck, buying and selling at the same time is not a good option for you, but if you have a steady, dependable income and low monthly debts, you may be able to get through the process relatively unscathed. Talking to a trusted lender is a good idea at this stage because they can help you determine what you can afford to do.

• Consider a Bridge Loan – If you do not have enough for a down payment, you may want to consider a bridge loan. A bridge loan is a short-term loan that uses the equity from your current home to get the necessary down payment to complete your purchase. But you must keep in mind that this is only an option if you are ok with taking on two mortgage payments for up to six months to a year: the typical term for a bridge loan.
   
• Make Satisfying Offers to Both Seller and Buyer – If the thought of two mortgage payments is too much, as mentioned before, you can make an offer contingent upon selling your current home. With that contingency, your contract states that you won’t lose your earnest money if your house doesn’t sell. This eliminates your financial risk but weakens your offer. If another buyer makes a cash offer with no contingencies, sellers will go after the cash offer every time. Today’s market of low inventory and high demand means that a contingent offer is not as likely to be accepted. One way you can have a better shot at getting your new house is to offer significant non-refundable earnest money, in the hope that the seller will be willing to wait longer for your current house to sell.
   
• Look For a Cash Buyer – If you’ve already decided to buy your next home and sell your current home later, you definitely will want it to sell as quickly as possible. So, as a seller, a cash sale with no contingencies is the way to go if you can. You may want to seek out an instant homebuyer or a local real estate investment company to initiate a cash sale, typically a much faster process than a traditional listing process. The downside is that the offers you may receive might be significantly less than what you might get on the open market.

If your Realtor can help you find a cash buyer on the open market, all the better!

While the idea of buying and selling at the same time is definitely a little scary, the experienced, professional Realtors on Sandra Nickel's team can help you through the process.

If you are in the market to buy or sell a home (or both), let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs! Call them today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information!

1230 Westmoreland Avenue, Montgomery, AL 36106

MLS# 573792

4 Bedrooms | 3 Baths | 2,724 Square Feet | Cloverdale

​

Situated in the heart of Old Cloverdale, this spacious home awaits its new owner! Made for entertaining, the first floor seamlessly flows from the living room, through breakfast/keeping room into a wonderful, updated galley-style kitchen with breakfast bar and granite countertops. The formal dining room is large enough for big family meals and has a quaint built-in china cabinet. Center rear is a big den/family room that overlooks the back deck and pool area. First floor also has a primary bedroom/bath with wall of custom built-ins and another guest bedroom and full bath. Second floor (which can be conveniently closed off if not in use) has landing gathering area, two good sized bedrooms, and another full bath. Just in time for spring and summer, relax and unwind on the big back deck overlooking saltwater pool and party gazebo! Saltwater pool has a rock-formed waterfall at one end. Don't miss the cozy screened porch off the living room with custom built hanging daybed for lounging and relaxing. This one is move-in ready and close to all the dining and entertainment venues in Cloverdale, plus minutes away from downtown and Maxwell!

Marketed by Montgomery AL Realtor, Billy Young, Sandra Nickel Hat Team!

227 Landmark Drive, Montgomery, AL 36117

MLS# 572672

3 Bedrooms | 2 Baths | 1,662 Square Feet | Landmark Estates

Welcome to 227 Landmark! This end-unit townhouse features a first-floor main bedroom, and spacious living/dining room combo. Upstairs are two more bedrooms, sharing a split bath with 2 vanity/dressing areas. Additional storage in walk-in attic space off front upstairs bedroom. Rear has private enclosed patio and attached storage room for your garden tools. Great location, close to shopping, dining, and entertainment. Relatively new HVAC, new water heater, fresh paint, new carpet upstairs!

Marketed by Montgomery AL Realtor, Billy Young, Sandra Nickel Hat Team!

If you are preparing to list your house for sale, you may be wondering if the financial reward will be worth the time, effort and money to fix up things that are in disrepair or that are dated. The answer to that question depends on a myriad of circumstances such as the current real estate market, the condition of competing inventory and whether the renovations that need to be made generally provide a return on investment.

Some home buyers are looking to purchase a “fixer upper”.  They are looking for properties priced to sell, perhaps because they don’t qualify for more expensive homes or maybe because they want to make a profit by fixing the home themselves. Most fixer buyers want to do simple repairs such as painting walls, replacing light fixtures and putting in new carpet.

Only a few want to take a house down to the studs and completely redo it.  These potential buyers will want a price for the home that will allow for all the repairs, the inconvenience of doing the work, and often a bit more.

For example, if a home is worth $200,000 fixed up but needs a new roof, and the roof costs approximately $10,000, a buyer most likely will not offer $190,000 for this home. The reason is that they can probably find a similar house that already has a new roof for $200,000 and save themselves the headache of replacing it themselves.  A buyer in this situation might offer $175,000 or less, in which case it would make more sense for the seller to replace the roof and sell it for $200,000.

It’s important to note that many buyers are looking for “turnkey” homes. They fear having to make major repairs because they might be costlier than anticipated or other problems might be revealed. Even if the price is right, homes listed for sale in “as is” condition might not attract as many buyers.

However, before doing major renovations, there are many things to consider. Smart sellers will research what their home’s market value will be once improvements are made and compare it to the cost of the renovations. If an upgrade won’t provide a return on the investment, it probably doesn’t make sense to do it.  Knowing the condition of your competition is helpful. For example, if other homes for sale in your neighborhood all have modern kitchens, it might make sense to update yours. This doesn’t mean you should tear it down and start from scratch. Often a minor kitchen remodel will suffice.

Also, keep in mind that kitchen and bathroom remodels are known to bring the best return on investment.

Start by making a list of the things in your home that are dated or in disrepair and then prioritize.  Here is a list of 10 minimum improvements to make before putting your house on the market:
 

• Patch all holes and cracks in walls and ceilings.
• Fix all appliances and HVAC systems.
• Repair leaky faucets.
• Replace worn carpeting.
• Repaint dark or marred walls in neutral colors (not white).
• Replace broken windows.
• Repair the roof.
• Change dated light fixtures/ceiling fans.
• Replace old linens/window coverings.
• Fix any code violations.

If your real estate market is a sellers’ market and homes are moving quickly, you can get by with fewer fixups, however a home that needs repairs will still deliver a lower price. If it’s a buyers’ market, people might not even be willing to look at homes that need repairs.  An experienced professional Realtor like Sandra Nickel can assist you in determining if renovating your house will benefit you when selling.

If you are in the market to buy or sell a home or both, let me, Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.