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How much house can you afford?

You can probably afford a bigger and more expensive new home than you think.

The interest rate charged by lenders for home mortgage loans is the key factor making houses more affordable. And experts predict these rates will remain stable in the coming months. Add a relatively small down payment of five percent, and the dream of home ownership seems closer than it has in quite some time.

Most lenders will be glad to give you more formal pre-qualification over the phone, and can take into account other details of your personal financial picture. While this process does not obligate the lender to make you a loan, it does give you a more accurate assessment of your borrowing power.

Also contributing to buyer's strength is availability of short term buy-downs and adjustable rate mortgages. A buy-down is a temporary reduction in the interest rate charged by the lender in exchange for a fee paid in cash at the closing. The advantage is that you qualify at the lowered interest rate, and can obtain a larger loan amount. A "2-1" buydown lowers the interest rate two percent in the first year, one percent in the second, and the loan reverts to the original rate for years three through thirty. In exchange for a cost of about 3% of the loan amount, you can qualify for as much as twenty percent more loan. But don't forget that the payments will be going up annually for the next two years.

Likewise, in adjustable rate loans, borrowers give up the stability of a permanent fixed rate for lower initial rates, sometimes called "teaser" rates because they are set artificially low to attract consumers. Adjustable rate loans are available today in the 5 percent range, giving buyers a shot at buying ever more expensive homes. It is important to remember that these loans can adjust upward (or downward) as much as two percent annually, and as much as six percent lifetime. This could almost double the monthly payment. Because fixed rates are now so low, this is probably not the best time to choose an adjustable rate loan.

 

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LANDLORD SURVIVAL TRAINING

with John Adams
Tuesday, February 28th

Being a landlord can be a rewarding experience. It can also be a difficult one if you don't have the knowledge and understanding of what the process requires.

Few schools offer degrees in property management, so most landlords learn "on-the-job" through acquired knowledge and on-the-job experience, essentially re-inventing the wheel. This is an expensive and depressing way to learn anything.

Whether you're a full-time landlord or just getting ready to purchase your first rental property, whether you are a licensed Georgia real estate professional or an accidental landlord, this seminar will help you improve your property's value, increase your cash flow and decrease your expenses, from attracting (and retaining) good tenants to maintaining your property to understanding your rights and obligations under the law.

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PROPERTY TAX REDUCTION WORKSHOP
with John Adams
Tuesday, March 27th

One of the significant annual expenses faced by any Georgia property owner is ad valorem property tax. Depending on where you live, it can be as high as three percent of the property's fair market value, and it must be paid year after year after year.

As a result, efforts to minimize this expense are not only worthwhile, they are encouraged by Georgia law. The phrase "ad valorem" means that each property is taxed based only on its value, and no one is required to pay a penny more than the minimum the law demands.

At the Property Tax Reduction Workshop, real estate expert John Adams will review the system he has used for over thirty years to reduce valuations and assessments in Georgia counties and municipalities, saving himself literally hundreds of thousands of dollars over the years.

In this 3 hour information packed seminar, John will teach you how to:

1. Understand the legal process of Property Tax Assessment
2. Meet the newly uniform Tax Deadlines
3. File your own Property Tax Return with a realistic valuation
4. Document your PT-50R with facts to support your case
5. Proactively meet with your Appraiser to reach an agreement
6. Protest your Notice of Assessment in an Intelligent manner
7. Give the Assessor an Opportunity to Save Face
8. Appeal to your Board of Equalization, in person or by mail
9. Make Your Case to the BOE
10. Take Your Case to Superior Court if necessary

If you are not doing all these steps now, you are likely costing yourself hundreds or thousands of dollars a year. If you own just one house, you could easily save over a thousand dollars over the next three years. If you own properties valued collectively over a million dollars, you are literally throwing away your profits year after year.

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