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Chris Nooney October 17, 2018

4 Things You Should Know About Easements, Right Of Ways

4 Things You Should Know About Easements, Right Of WaysRobert Frost once wrote that “Good fences make good neighbors.” The poet was not referring to people bonding over the task of mending fences. Rather, defined boundaries are an important facet of neighborly relationships.

Without clearly defined property lines and rights, otherwise good people too often become embroiled in land disputes. That’s why a basic knowledge about easements and right of ways can help property owners maintain a working friendship with people whose land abuts yours.

These are four of the important elements about easements and right of ways you should know.

1: Types Of Easements

An easement allows another person the right to access a property for a specific purpose. There are two basic types. Negative easements prevent an owner from using their property in a certain fashion. This might preclude building another floor on a home that would block a water view. A positive easement might allow someone access to land for the purpose of clearing timber or driving over it. The right to passage over a property remains the most common.

2: How Right Of Ways Differ

A right of way is, in fact, a type of easement. The general difference is that it is often accompanied by a defined road or pathway that one party uses to cross over. Hunters often establish right of ways with property owners and landlocked homes generally have driveways running over another person’s land.

3: How Easements Are Created

There are several ways an easement may be legally created. The first is generally called a “permissive easement.” This basically means you give permission to another party to use your land in a specific fashion. Again, driving over it to reach their property is the most common.

A key element of a permissive easement is that, in most states, it cannot become permanent without the property owner’s express authorization. In other words, allowing someone to drive over your land does not give them the right to continue forever. You can decide at any time to revoke permission.

Another way that easements are formed is by adverse possession. This tends to lead to hostilities between neighbors because one party asks the courts for a legal right to use your land based on prior usage. The lawsuit generally offers little or no compensation. It’s basically a land grab.

The more amicable way to create an easement is by granting an abutter the right to use your land. This generally entails creating a land-use agreement in which the property owner receives reasonable compensation.

4: Easements May Have Time Limits

An easement does not necessarily last forever. Some are granted with a defined expiration date. Others are recorded with the deed and are passed on from owner to owner. When buying a home, a title search should be performed that provides detail about existing easements and right of ways. This is an important part of purchasing a property because land disputes can be financially and emotionally taxing.

If you have concerns about any type of easement on a potential property, be sure to discuss it with your trusted home loan professional.

Filed Under: Real Estate Tagged With: Easement, Land Dispute, Real Estate

Chris Nooney October 16, 2018

What To Know About Specialty Mortgages

What To Know About Specialty MortgagesRecent medical school graduates, saddled by high student loan debt, sometimes have a hard time qualifying for a first mortgage. Now, however, a growing number of lenders will consider future earnings potential of high earners in the medical profession as a way to offset high debt ratios. But specialty mortgages for young physicians aren’t the only unique loans available today.

Nationwide, there are a number of unique programs designed to help first-time buyers qualify for a mortgage loan. While some target specific professions, others are open to a wider range of applicants. They are definitely worth exploring if you’re interested in buying a home, but are not able to qualify for a standard home loan.

Here are some of the better known, widely-available options:

Good Neighbor Next Door

A HUD-sponsored program, this not-so-well-known option is available to firefighters and law enforcement officers, emergency medical technicians and teachers. The loans provide a discount of up to 50 percent of the asking price in select zones in the country known as revitalization areas. One stipulation is that the borrower must agree to live in the home for at least three years.

VA Loans — Zero Down

For anyone who has served in the military, and certain authorized civilian employees of the government, the zero down VA loan is one of the best specialty mortgages available.

Home Path

Fannie Mae and Freddy Mac programs offered to low and moderate-income families also provide guidance and home-ownership information that can be invaluable for first-time borrowers. The education programs are specifically designed to address the common misconceptions about buying as well as providing education about property maintenance and financial responsibility.

Energy-Efficient Mortgage (EEM)

This specialty mortgage allows homebuyers to add green features to a home without making a larger down payment or paying a higher interest rate. The cost of energy-efficient improvements is simply rolled into the primary FHA or VA mortgage. It can be a cost-effective, simple way to add desirable improvements as well as value to a home.

FHA Rehabilitation Program

If a fixer-upper seems like the way to go for your specific situation, the FHA 203(k) program offers a loan option that might be a good fit. Basically, this mortgage is based on the value of the home after improvements are completed, and carries a down payment requirement as low as three percent. The funds needed for rehabilitation are included in the primary loan.

Native American Direct Loan

Essentially a VA loan for Native American veterans, this mortgage program is for homes on federal trust lands; it is a zero down 30-year fixed-rate mortgage with a low interest rate.

State And Municipal Programs

Many states and cities have grants or specialty programs available. It is always worth checking with local jurisdictions to what is offered that you might qualify for.

Interest Only Or Extended Term

Two other types of mortgage that are available to serve special needs borrowers are interest only loans and mortgages with terms up to 40 years.

If you think these might be of interest, be sure to ask for specifics from your trusted mortgage broker or lender.

 

 

 

 

Filed Under: Mortgage Tagged With: Financing Options, Mortgage, Specialty Loans

Chris Nooney October 15, 2018

What’s Ahead For Mortgage Rates This Week – October 15th, 2018

What's Ahead For Mortgage Rates This Week - October 15th, 2018Last week’s economic reports included releases on inflation, consumer sentiment. Weekly readings on mortgage rates and new jobless claims were also released.

Inflation and Consumer Sentiment Dip

The Commerce Department reported slower growth in inflation for September. The Consumer Price Index for September showed a growth rate of 0.10 percent. Analysts projected a reading of 0.20 percent growth, which was based on August’s reading of 0.20 percent.

This was the sixth consecutive month-to-month increase in the inflation rate. Year-over-year, inflation has grown 2.30 percent as compared to the prior year-over-year rate of 2.70 percent.

Analysts said that rising rents and homeownership costs drove consumer prices higher, but consumer prices in other sectors eased.

Core inflation, which excludes volatile food and energy sectors, was unchanged at 0.10 percent growth month-to-month. Analysts expected CPI to increase to 0.20 percent.

According to the University of Michigan Consumer Sentiment Index for October, Consumer confidence slipped to an index reading of 99.00 as compared to September’s reading of 100.1 and expectations for an October reading of 100.6.

October’s reading exceeded the average reading of 98.50 for 2018.Analysts attributed October’s lower reading to consumer concerns over their finances as inflation rises and income remains relatively unchanged.

Mortgage Rates, New Jobless Claims Rise

Freddie Mac reported higher mortgage rates last week. The average rate for 30-year fixed rate mortgages rose 19 basis points to 4.90 percent. 15-year fixed rate mortgage rates were 14 basis points higher and averaged 4.29 percent.

Rates for 5/1 adjustable rate mortgages averaged 4.07 percent and rose by six basis points. Last week’s average mortgage rates were the highest rates seen since April 14, 2011.

First-time jobless claims rose by 7,000 new claims filed to 214,000 new claims. Analysts expected a reading of 205,000 new claims filed based on the prior week’s reading of 207,000 first-time claims filed.

Last week’s reading was attributed to effects of Hurricane Florence, but economists said that the reading was close to low readings seen in the late 1960s.

What‘s Ahead

This week’s scheduled economic news includes readings on sales of pre-owned homes, the National Association of Home Builders Housing Market Index, Commerce Department reports on housing starts and building permits issued. The Fed’s FOMC meeting minutes will also be released, along with weekly readings on mortgage rates and first-time jobless claims.

Filed Under: Financial Reports Tagged With: Employment, Interest Rates, Mortgage Rates

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