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203K

I'm working with a client right now on a 203k project. I found them a fixer upper and showed them an affordable way to renovate it into their dream home. Now they are getting the exact house they want at an affordable monthly payment! Call me at 908-346-1783 and let me help you get a gorgeous and affordable home too. https://www.rubyhome.com/home-loans/fha-203k-loans/

#203k

It's amazing what a little staging can do to get a home ready to sell...new 2 bedroom/ 2 bath townhouse listing coming soon

(via https://www.youtube.com/watch?v=OL6cCOPOXiQ)

#picplaypost

Mortgage Commitment Letters, Conditions and Final Approval

Home buyers are often confused about the differences between mortgage commitments, conditions and final approval.

Who issues the commitment letter? What is a conditional approval? Why did the underwriter give me a list of conditions to satisfy, before I can close the loan? How long does it take to reach the final approval?

These are just a few of the questions we receive from our readers on a regular basis. So I thought it might be helpful to explain all of these terms and topics at once, seeing as how they are closely related.

Let's start with some basic definitions:

Mortgage Commitment -- This is when the lender commits to lending you money. Most of the time, they will issue an actual written document to clarify their intentions. So naturally, it is referred to as the mortgage commitment letter. This letter usually indicates (A) the type of loan being used, (B) the amount of money being borrowed, (C) the length or term of the repayment period, and (D) the interest rate assigned to the loan. Mortgage commitments can be conditional, which means they come with a list of conditions that must be met before the file can move forward. Mortgage Conditions -- These are things you must do to receive a final approval from the lender. Conditions are usually issued by the mortgage company's underwriter or underwriting department. With a conditional approval, they are basically telling you "we will approve the loan if you can resolve/satisfy the following conditions." Common conditions include proof of mortgage insurance (when applicable), proof of homeowners insurance, and requests for additional documentation. It's important to note that the term "mortgage commitment" can be used loosely. That is, it can mean different things when used by different lenders. It is not a regulated or standardized term, but a variable one. So ask questions. Make sure you understand the language and terminology they are using. Don't assume.

For instance, some lenders issue a mortgage commitment letter before the underwriting process, while others issue the letter after underwriting. My goal here is to give you a general understanding of this process. That way, you'll at least know what to ask your lender, when the time comes.

Commitments, Conditions and the Path to Approval

While the precise meaning of "commitment" can be elusive, mortgage conditions are more straightforward.

Conditions are issues that must be resolved before the lender will give you a green light or "clear to close." They are obstacles to the final approval. The conditional approval, therefore, is one that is contingent upon the satisfactory resolution of all listed conditions. You won't be able to close the loan until you resolve all of the issues that arise during the underwriting stage.

Mortgage conditions are typically issued by the underwriter. The underwriting department (which might consist of one person or a small team of individuals) is responsible for verifying and vetting all of the loan documents needed for approval. It's also their job to spot errors, inconsistencies, or qualifying issues that may put the loan outside of the lender's parameters. In other words, they are problem spotters.

Examples of mortgage conditions include the following:

Providing additional documents needed to verify income, assets or debts Paying off outstanding debts in order to reduce the debt-to-income (DTI) ratio Providing proof of homeowners insurance and/or title insurance Completing a termite inspection of the property being purchased Providing updated copies of bank statements Explaining certain financial withdrawals, transfers or deposits Showing proof that the earnest money deposit check has cleared Verifying employment with a letter from the borrower's employer This list is not exhaustive. These are just some of the most common mortgage conditions issued by underwriters. You might encounter all of these conditions, or none of them. You might even encounter additional items that are not listed above. Mortgage commitments, conditions and approvals vary from one borrower to the next. It is a highly individualized process. Every lending scenario is different, because every borrower is different.

Your Part In All of This

What is your role in all of this, as the borrower? For one thing, you'll need to be patient. The mortgage underwriting process takes longer today than it did during the housing boom. Lenders are more wary of risk these days, due to the financial crisis. Additionally, there are several new lending regulations coming down the line. As a result, lenders are closely examining borrowers and their credentials. So patience is a must.

You can expedite the process by following up on any requests made by the underwriter. The sooner you satisfy the mortgage conditions, the sooner you'll get through the process.

You don't want the ball to linger in your court. If you get some kind of request for additional information or action, handle it as soon as possible. Put the ball back in their court, and then stay in close contact with your loan officer. This will expedite the process.

Read more: http://www.homebuyinginstitute.com/mortgage-commitment-letters.php#ixzz4XGswBBOH

Getting the Dream Home via a Fixer Upper

Most people shy away from any homes that need work because once you buy the home there's really not a lot left over for renovations. But what if there was a way to create your perfect dream home with out wiping out your savings?

There are various loans that roll renovations into the mortgage called the 203K loan or the Fannie Mae Home Style Loan. Basically, they are a home loan where you can borrow money for home renovations at the same time you borrow money for a mortgage and it lumps the funds all together as one mortgage loan.

There are two different types of 203k renovation loan products. This website does a good job of giving you all the information needed on a 203k http://ww25.re-buildusa.com

There is the Standard 203k - For loans over $35,000 with more extensive projects like total remodels, structural work, etc. and The Streamlined 203k - For more cosmetic-type projects (countertops, flooring, paint) and renovation work totaling less than $35,000. I've read that the Streamline 203K is the less complicated loan but I would check with your lender on that. Here is one article on a 203K. http://www.realtor.com/advice/finance/what-is-an-fha-203k-loan/

Here are some articles on the Fannie Mae Home Style Loans https://www.guaranteedrate.com/resources/homestyle-renovation-loan-what-you-need-to-know

https://www.fanniemae.com/content/fact_sheet/homestyle-renovation-product-matrix.pdf

http://www.amerifirst.com/amerifirst-blog/bid/104089/What-is-the-HomeStyle-Renovation-Loan

If this sounds like the perfect way to create your dream home then contact me and I will put you on a daily real estate listing feed that will email your preferred price range of fixer upper homes in the top notch school districts of your choice. Let’s work together and get that home of your dreams!

Alicia Fidelman Weichert Real Estate Sales Representative Certified Negotiation Expert (CNE®) Accredited Buyer’s Representative (ABR®) Cell: 908-346-1783 (Direct Line) [email protected] www.aliciaproducesresults.com

See my reviews at http://www.realtor.com/realestateagents/Alicia-Fidelman_WARREN_NJ_2078536_656574883

#Affording your dream home #how to afford a fixer upper

After You Say YES to the House

New Jersey Home buying and Closing Process

So you’ve negotiated the deal on your dream home, now what?

Here is a Step by Step Primer

Part 1: Attorney review, inspections and credits -- These are the initial tasks once a buyer is in contract, and are most often done in parallel to Part 2: The mortgage process: An offer is accepted by the seller and a contract is signed by both parties. The 72-hour Attorney Review period begins. During this period, changes can be made to the contract that are agreed upon by both parties. Also, either party can walk away during this 72-hour period.

An initial "good faith deposit" is paid to the attorney or broker (never to the seller directly), usually a token amount ($1,000-$5,000) upon signing of the contract. The rest of the deposit, or earnest money is paid in the time frame indicated in the contract (usually a few days)

The buyer elects to perform inspections on the property as agreed upon in the contract. These inspections must be completed by a certain date, which is called the inspection contingency date. The types of inspections vary by property type and situation (and locale), but generally buyers order a general home inspection and then request additional inspections if necessary, including a termite inspection, radon inspection, lead paint inspection,or asbestos inspection.

In addition to inspections, homebuyers in New Jersey may need to obtain certification or documentation of: A buried oil tank: Before homes in New Jersey (and elsewhere on the East Coast) were heated with natural gas, they were heated with heating oil. Because this oil and the buried tanks that once contained this oil are environmental hazards, they must be decommissioned through a process subject to inspection and approval by the appropriate regulatory body in New Jersey. Furthermore, the location of these buried oil tanks can be problematic if they haven't been decommissioned. For instance, an oil tank buried under a garage floor (or worse, under a part of the house itself) can incur significant costs and should be taken into account in any transaction. While decommissioning is not a requirement to complete the transaction, it's does present significant risk to a new owner and in practice is usually made a condition of sale. This is not the same as an above ground oil tank that may still be in use to heat the property.

Well testing: Homes that have a buried water well may need to comply with a New Jersey law that requires testing of water wells to ensure environmental safety. Read about the Private Well Testing Act at nj.gov.

Septic certification: If the property has a septic tank, it may be necessary to perform an inspection and obtain a certification that the septic tank is in good working order and does not present any environmental hazard.

Flood search: This is a survey of the property that assesses its risk of flood damage.

Smoke detector certification: A document that attests that the required number of smoke (and carbon monoxide) detectors are present and in working order. See a sample of this document at nj.gov. Certificate of occupancy: This is a document that proves the property can be occupied and lived in, and that it complies with zoning and building code. Learn more about certificates of occupancy at njpermits.com. Based on the outcome of inspections, buyers may elect to ask the seller for repair work, closing cost credits, or a reduction in the sale price due to flaws that were uncovered. Sellers have three options: agree to all of the buyers's requests, offer a modified solution back to the buyer, or decline to make any amends. In response, the buyer can continue to negotiate, accept the seller's position, or in some cases, end the transaction and recoup their earnest money.

The buyer removes or waives the inspection contingency by agreeing to a signed inspection response with the seller, or by failing to make an inspection response request to the seller before the inspection contingency date has passed.

Part 2: The mortgage process

For those borrowing to purchase their home, the mortgage process is usually the the most stressful and opaque part of the transaction. It's best to start as early as possible and be ready to produce lots of documentation. The following is the general process in New Jersey:

A buyer submits a loan application to their lender, either directly or through a mortgage broker. See a sample Uniform Residential Loan Application used in New Jersey.

Within 3 days, the lender sends a "Good Faith Estimate," or GFE, to the buyer that is a breakdown of estimated closing costs. The final costs are likely to deviate from this estimate. See a sample GFE at hud.gov.At the request of their lender, the buyer sends a series of personal financial disclosures. These vary by situation, but the most commonly requested documents are several months of statements for each bank account a borrower holds (including any investment account) Several months of statements for any outstanding loans, lines of credit, or other liabilities. This can also include documentation of rent payments. Up to two years of tax returns, released to the lender via an authorization submitted by the buyer using IRS form 4506-T. Recent pay stubs and contact information for each borrower's employer. The number of pay stubs varies by situation. Any other disclosures that are material to a borrower's financial situation. This includes but is not limited to marriage licenses, Divorce settlements, child support, liens, bankruptcies, Judgments. If there's something that affects how much money you have on hand that isn't shown by simply looking at your salary, be prepared to document it. Explanation of any credit inquiries, substantiation of any large deposits or cash gifts that aren't regular income. In some cases, a large cash gift may look similar to a personal loan by a friend or family member, and lenders will require gift letters from those that gave you the cash gift, stating that the gift was not a loan. They may also ask for itemized deposit slips. The exact amount that triggers this requirement varies by situation (for instance, a $1,000 cash gift may be material to a single borrower that makes $35,000/yr but may not be material to a borrower that makes $350,000/yr), so it's good practice to ask your lender if you suspect you might have a material cash gift or large deposit - so you aren't surprised by this at the last minute. Repeated and updated documentation of any of the above. Keep in mind: to a lender, anything can happen to a borrower's personal financial situation and credit during the escrow process. Thus, you may be asked more than once for the same type of document so that your lender has the most recent pay stubs, rent receipts, bank statements, or other disclosures that may change over time. Any material changes in these documents -or any element of your personal financial situation- may require the lender to reassess your eligibility for the loan for which you've applied.

The lender renders an approval decision, and if approved, issues a loan commitment letter, stating its willingness to fund the mortgage provided certain conditions are met. These conditions usually include appraisal (so the lender can confirm that the property you're buying isn't worth far less than you're paying) but will also generally include any material change in your situation -or the property- as initially disclosed to your lender.

The loan contingency is removed by the buyer by the loan contingency date as defined in the contract. Buyers often ask the seller for an extension to their loan contingency date if they have not yet received their loan commitment letter. In New Jersey, a buyer must submit their request for extension in writing, and the seller has a set number of days (usually indicated in the contract) to respond negatively if they do not wish to grant the extension.

An appraisal is ordered by the lender or mortgage broker via a central directory of appraisers (often called an Appraisal Management Company or AMC). Choosing a specific appraiser is not possible, but a mortgage broker can reject an appraiser and ask for a new one. If the appraisal comes in lower than the purchase price, a lender can decline to approve the borrower unless a change is made to the purchase price or the size of the down payment.

Homeowners' insurance is purchased (or substantiated, if the property being purchased includes homeowners' insurance as part of association fees or similar arrangements), and proof of homeowners' insurance is submitted to the lender. Your lender will also require you to get title insurance.

Tip: As this process can be long, arduous, seemingly arbitrary, and is often critical to your home buying transaction, try to prepare these documents (or at least figure out how to prepare them) in advance. Also, do not make any changes to your employment or credit until your transaction is complete (not just until you get a loan commitment letter). This means not switching employers even if it results in a higher income, as counterintuitive as that may sound. It also means not leasing or financing a car, opening a new credit card account, or anything else that can affect your credit report.

Part 3: The closing itself

The closing process itself takes place at one table (either at the office of an attorney or title company), where buyers sign all documents related to their loan and the transaction itself. After all documents are signed and payments exchanged, buyers generally take possession of the keys unless a separate agreement has been reached to allow the seller stay in the property for a period after closing. The detailed steps that make up closing are:

A title search is run just prior to closing to determine if there areany liens or assessments on the title. Provided the title is deemed 'clear,' the closing proceeds as planned. Note: buyers can ask for this title search in advance of closing (sometimes for an additional fee), and it may reveal material information regarding the property that may be good to know well before closing. A buyer's attorney begins preparing the paperwork for changing the title / deed and will prepare title insurance, and a final closing date is scheduled on or around the date indicated in the contract.

A final cash figure for what a buyer needs to bring to the closing in the form of a cashier's check is calculated. This is based not only on a mortgage's closing costs but factors like property taxes and utilities paid in to date by the seller.

A final walk through will often be performed the day of and 10 days before closing to verify the property is in the same condition it was when the process began.

At the closing, or settlement, table, the buyer (and seller) sign all closing documents (TILA/RESPA Integrated Disclosures or TRID) including and the final loan documents.

The buyer pays the remaining funds in their down payment to an attorney or a representative of the title company (who is present at closing) via cashier's check.

The representative from the title company or your attorney will then record the transaction and deed with the appropriate municipality.

The buyer receives the keys and, unless indicated differently in the contract, officially takes possession of the property.

Tip: Try to control for any surprises that may come up at time of closing. Running a title search early may be appropriate, as is the aformentioned advice not to materially change your employment or credit before closing. ~ Information courtesy of Amitree

Negotiating Closing Costs

Since Dodd-Frank was signed into law during the summer of 2010, mortgage lenders must charge the same origination, underwriting, administrative and doc-preparation fees (often referred to as "junk fees") to each of their customers. If they don't, they're violating federal law.

However, savvy consumers can still negotiate some of their closing costs. There are still plenty of third-party fees that borrowers can shop around for and negotiate.

On a purchase, the Federal Reserve’s Consumers' Guide to Mortgage Settlement Costs estimates that closing costs run an average of 3 percent of the home's sales price, and can range from 3 percent to 6 percent of an outstanding loan balance for a refinance.

In its 2014 survey of closing costs, Bankrate reported that homebuyers taking out a mortgage loan of $200,000 paid an average of $2,539 in lender and third-party fees. Lender fees, the fees that consumers pay directly to lenders and not to third-party servicers, averaged $1,877, according to Bankrate’s latest study.

Closing costs: Which ones can I negotiate?

Lender fees: No

Your lender will charge fees for a wide range of services. This can include underwriting fees, application fees, document-preparation fees and processing fees.

These fees will vary by lender, but they can no longer be negotiated down. If your lender charged $1,500 in total lender fees to one customer, it must charge the same to you. The key is to keep shopping; you're allowed to work with any mortgage originator licensed to do business in your state, no matter where physical offices are based.

Title insurance: Yes

Title insurance protects your lender in case you have any undiscovered liens against your property. This fee can be costly. A title insurance policy -- including the search of public records that a title company performs -- should cost about $1,500 on a $250,000 home. A title policy for a refinance should cost about $700. You can shop around for lower costs and you can negotiate this fe, title insurance rates can vary by as much as 5 percent, so shop around.

Appraisal: No

Before a lender loans you money or refinances your home, you'll need to pay for an appraisal. This fee varies according to your home's size and location, but Realtor.com estimates that appraisals typically cost between $250 and $350 for an average home. Your lender orders the appraisal for you so you can't shop around and probably won't be able to negotiate the cost, either.

Home insurance: Yes

Lenders also require that you take out a home insurance policy before buying a home. This can be expensive. The Federal Reserve said that policies cost anywhere from $300 to $1,000 a year depending on your home and location. Since you can take out a homeowners insurance policy with any company you'd like, you can shop around. You can also take advantage of insurer discounts to reduce your costs. Some discounts are worth more than others. Some companies might provide you with a discount of up to 15 percent if you buy a new home instead of an existing one. Some insurers provide a discount of 5 percent if you're a non-smoker.

State taxes: No

You will have to pay state transfer and recording fees when you buy a home. These fees vary, but you can't negotiate them down or eliminate them.

So despite recent laws, you can still negotiate specific closing costs lower to help you save money when it's time to buy or refinance a home. ~ Courtesy of HSH.com

These are the 50 Safest Cities in New Jersey. Guess Where yours is?

When To Get The Best Deal ALL Year long

JANUARY

Air conditioners: It’s obviously not the season when they’re in demand, so you can usually get one for less. Carpeting: You’ll start to see deals beginning in mid-December but prices drop the most in early January. Tax rebate time heralds the start of prime carpet-buying season, and thus an end to the low prices. FEBRUARY

Tools: Makers of buzz saws and power drills tend to push their products early in the year. Cameras: This is when new models are rolled out, so the old ones get marked down. MARCH

Luggage: Summer vacation is months away and makers need to move the merch. Televisions: The fiscal year ends now for Japanese manufacturers, so what’s left in stock can be had for a song. APRIL

Cruises: Fewer travelers means lower prices. Car accessories: Time to move old inventory and get ready for car repair season. MAY

Patio furniture: Stores need to make room for brand-new models, so it’s a buyer’s market. Vacuum cleaners: Ditto. JUNE

Large appliances: It’s floor model season, so you can often get a slightly dinged washer or dryer if you look. Gym memberships: New Year’s resolution season is long gone. JULY

Grills: Once July 4th is over, prices are slashed. Furniture: July marks when stores make their big inventory push. AUGUST

Laptops: Back-to-school sales are just kicking off. Wine: Small producers often discount early in the harvest. SEPTEMBER

Cars: Dealers are looking at remainders from last year’s inventory and waiting for the arrival of next year’s fleet. Make an offer. Lawnmowers: The last mowers to sell until the grass is green again are priced to move. OCTOBER

Jeans: What didn’t get sold in the back-to-school season is on sale now. Toys: Manufacturers often try to kick-start the holiday season by luring buyers now. NOVEMBER

Candy: Anything left over from Halloween is cheap this month. Cookwear: Pots and pans get marked down in anticipation of the Christmas season. DECEMBER

Wedding dresses: Right before Christmas is the slow season in the bridal market. Home theater equipment: The best deals are often in January, but it’s worth a trip to the electronics store to check prices now.

Source: lifehacker.com

Alicia Fidelman Sales Representative Weichert Realtors 908-346-1783 [email protected]

#whatmonthischeaper #savemoney

Getting the Best Deal on an Airline Ticket

So I’m traveling back home to Kansas City in a couple of months and I want to get the best deal on my airline ticket. So here is how I will go about it…

I will first check a few of my usual sites for ticket prices like Kyak (Kayak offers the “Explore” tool that allows you to put in your home airport and see what routes have the cheapest fares), airfarewatchdog, cheapflights, orbitz, expedia, googleflights, whichbudget.com, Skyscanner.com. momondo etc. I also use Priceline to bid but I will check it against BiddingforTravel or BetterBidding to find the lowest acceptable bids. Also, you should know that Southwest Airlines does not participate in any of these sites by choice. Sometimes they offer a better deal so check them out too.

One thing to remember is that it is cheaper to purchase your tickets on Sundays. A recent study by The Wall Street Journal shows that most people can save an average of $60 by purchasing their tickets on a Sunday (http://www.wsj.com/articles/the-best-day-to-buy-airline-tickets-1413999377)

Now that you know when to buy your ticket you should know which days are cheaper to fly, which are Tuesday or Wednesday (unless that Tuesday or Wednesday happens to fall on or near a major travel holiday like Thanksgiving or Memorial Day). Planning a week-long vacation? Make a habit of taking trips that span Wednesday to Tuesday rather than Monday to Sunday and you'll find yourself saving a great deal of money.

Studies show that flying on Tuesdays is still the best day to fly for less. Fewer people travel on Tuesdays, and less demand means a better deal for you. Friday and Sunday are the most expensive.

The time of day you travel is also important. No one wants to fly at 4 a.m., but you can save big on your ticket price if you do. The first flight of the day, red-eye flights or any flight that coincides with lunchtime or dinner are the best times to fly if you want to pay less.

A good rule of thumb is that domestic tickets will be at their lowest price six weeks before your date of departure. Even better: If you know you're going to be taking a trip, start checking the sites really early, and when you see a good deal, grab it. After that six-week point, ticket prices tend to climb up slowly, then spike to their highest point a few days before departure. Of course, there will always be exceptions to the rule. The airline could have a big sale on flights to a certain city when demand is down, for example.

So in my quest for a cheap ticket from Newark to Kansas City I have found a few, but of course I now have to look at the baggage charges on these cheap flights, which can add up quickly. Once I figure that out I will purchase my ticket this Sunday. Now to decide what to pack...

Alicia Fidelman Sales Representative Weichert Realtors 908-346-1783 [email protected]

#cheapplanetickets #savemoneyonplanetickets #cheaptraveltips

Best Used Cars for Teens

Buying a Car For My Son

We are trying to decide if we should buy a new car or an older car for our son. If we buy new, we will have higher insurance rates. But if we buy a late model we will have less reliability and repair bills. After finding information from Consumer Reports We have decided on used and here is what I found for the best pre-owned cars. Per Consumer Reports, the cars featured below all meet their criteria for being safe and reliable, and each has performed well in Consumer Reports’ tests.

Make & model Acura TSX Buick Regal (2012) Chevrolet Equinox (V6, 2010-2012) Chevrolet Malibu (4-cyl., 2009-2012) Ford Focus sedan (2009-2011) Ford Fusion (4-cyl. and hybrid, 2010-2012) Honda Accord (4-cyl., 2008-2012) Honda Civic (2012 or later) Honda Fit (2011-2012) Hyundai Elantra (2011 or later) Hyundai Elantra SE (2008-2010) Hyundai Elantra Touring Hyundai Santa Fe (V6, 2007-2009, non-3rd row) Hyundai Sonata (4-cyl., non-turbo, 2006 or later) Hyundai Tucson (2010 to 2012) Kia Forte (2010-2013) Kia Optima (non-turbo, 2010 or later) Kia Soul (2010-2011) Kia Sportage (4-cyl., nonturbo, 2011-2013) Mazda3 (2011 or later) Mazda6 i (4-cyl., 2009-2013) Mitsubishi Outlander (2007-2013, non-3rd row) Nissan Altima (4-cyl. 2010-2013) Nissan Rogue (2010-2013) Nissan Sentra (2010-2013) Scion xB (2008 or later) Scion xD (2012-2013) Subaru Forester (non-turbo, 2009 or later) Subaru Impreza (non-turbo, 2009 or later) Subaru Impreza Outback Sport (2008 or later) Subaru Legacy 2.5i (2009 or later) Toyota Camry (4-cyl., 2010 or later) Toyota Corolla (2010 or later) Toyota Matrix (2010 or later) Toyota Prius (2010 or later) Toyota Prius V (2012-2013) Toyota RAV4 (2004-2013, non-3rd row, 4-cyl.) Volkswagen Jetta (2009-2010) Volkswagen Jetta Sportwagen Volkswagen Rabbit (2009) / Golf (2010 or later) Volkswagen Tiguan (2011 or later)

Here is what Consumer Reports says is the BEST Used Car Deals

Small cars Vehicle Mileage MSRP When New Buying From Dealer Avg Price Drop In Retail Value vs. MSRP 2010 Honda Civic DX sedan, auto 66,000 $16,455 $11,150 32% 2010 Honda Civic Hybrid sedan, auto 66,000 $23,800 $13,300 44% 2010 Honda Fit navi, auto 66,000 $19,110 $12,150 36% 2010 Mazda3 s, auto 66,000 $19,985 $12,600 37% 2010 Volkswagen Golf 5-cyl., auto 66,000 $18,720 $10,650 43% 2011 Honda Civic EX-L sedan, auto 51,000 $21,955 $15,375 30% 2011 Mazda3 i Touring sedan, auto 51,000 $18,950 $12,800 32% 2011 Nissan Leaf SL 51,000 $33,720 $14,250 58% 2012 Honda Civic LX sedan, auto 40,000 $18,805 $15,075 20% 2012 Honda Fit navi, auto 40,000 $19,690 $15,600 21% 2012 Mazda3 s Touring, auto 40,000 $22,100 $15,975 28% 2012 Toyota Corolla LE, auto 40,000 $17,910 $14,900 17% 2013 Volkswagen Golf 5-cyl., auto 22,000 $19,095 $15,250 20% 2013 Volkswagen Golf TDI, auto 22,000 $25,335 $20,575 19% 2013 Honda Civic EX-L coupe, navi, auto 22,000 $23,765 $19,975 16% 2013 Honda Fit, navi, auto 22,000 $19,790 $17,600 11% Midsized sedans Vehicle Mileage MSRP When New Buying From Dealer Avg Price Drop In Retail Value vs. MSRP 2010 Honda Accord EX-L, auto 66,000 $26,830 $16,750 38% 2010 Mazda6 V6, auto 66,000 $24,565 $14,650 40% 2011 Honda Accord EX, auto 51,000 $24,905 $17,975 28% 2011 Mazda6 i Grand Touring, auto 51,000 $26,820 $15,300 43% 2011 Toyota Camry LE, auto 51,000 $22,325 $15,450 31% 2012 Ford Fusion SEL 40,000 $25,300 $16,575 34% 2012 Honda Accord EX-L, navi, auto 40,000 $29,855 $20,950 30% 2012 Mazda6 i Touring Plus, auto 40,000 $24,730 $15,600 37% 2012 Toyota Camry L, auto 40,000 $22,055 $17,125 22% 2013 Honda Accord EX-L, navi, auto 22,000 $29,995 $24,950 17% 2013 Toyota Camry L 22,000 $22,235 $19,575 12%

Now to make a decision and of course it probably won’t be the same one my son will choose.

Alicia Fidelman Sales Representative Weichert Realtors 908-346-1783 [email protected]

#Bestcarforateenager #Bestusedcarforteens

LEASE A CAR LIKE A BOSS!

Nobody likes to be taken advantage of and yet most of us at some point in our lives have gotten a bad deal. It’s very costly not being prepared and I absolutely hate losing money. Now I treat the deal like a battle and I ready myself to WIN.

We are on the verge of car war season my friends so let’s get you ready to win that battle!

1. NEVER ANSWER THIS QUESTION “So what do you want to pay a month?” Clever salespeople want you to focus only on low monthly payments because it gives them room to inflate things like the loan interest and length. This increases the dealer’s profit and you end up spending thousands more on the car.

2. Never let the salesman know you have a trade in. Wait until you have him write down the numbers you’ve agreed upon then let it be known you have a trade in. Know the value of that trade in before you walk in to the dealership then back it up with three documented sources (i.e. Kelly’s Blue Book, The Black Book, Edmund’s, Auto Trader.com etc.)

3. Pull your credit report and know what it is before setting foot in a dealership. Some salespeople will tell you that your credit score was not good enough to get a better interest rate…bring documentation to state otherwise.

4. Check the financing and sell sheets carefully and know which add-ons are truly unnecessary. You shouldn’t be charged for a hidden loan acquisition fee and other fees, such as “customer service” or doc preparation fees.

5. Get to know the basic terminology. You will need this information to calculate the best lease payment. You will need to gather the below information…google as much of this as you can, Edmund’s is a great source for a lot this information…I also went to a lot of chat rooms and spoke to experts in this area to see what these numbers should be:

MSRP of the vehicle- Also called the sticker price (NEVER pay sticker especially for a lease!). Capitalized Cost - The cost of the vehicle after subtracting any down payment or trade-in allowance (get trade in value ahead time by checking 3 different sources, bring that info with you) Term of Lease - The number of months you will be leasing (usually 24, 36, 39, or 48 months) 36 is best. Residual value - The amount the vehicle is worth at the end of the lease (document your sources on this). The money factor also known as the lease factor- This determines how much you’ll pay in finance charges each month during your lease. The higher the money factor, the higher your monthly payment and the more you’ll pay in total finance charges. Therefore, when shopping for a lease, you’ll want to look for the lowest money factor. The Money factor is always expressed as a very small number, such as .0029. To convert to an equivalent annual interest percentage rate (APR), simply multiply by 2400 which equals roughly 7%… which by the way is a really high interest rate. Try looking at bankrate.com to see what and where the best interest rates are, document your sources and bring them with you.

Example: You are leasing a car that has an MSRP of $27,000 and you being the master of negotiation got it down to $25,000. (IMPORTANT- ALWAYS NEGOTIATE the MSRP, it doesn’t matter if you are leasing) You will be leasing the car for 36 months. You have determined that the money factor is .0029, and the leasing company has predicted the residual value to be $12,500 at the end of 36 months.

Capitalized Cost - $25,000 Residual Value - $12,500 Money Factor - .0029 Term - 36 Months

What you need to calculate for your monthly lease payment is, price of the car, residual value, the money factor, and the length of the lease. Always ask the salesperson what the money factor is on their leases. It’s usually not discussed in a lease transactions because most customers don’t know to ask. But you my friend now know to ask about this. If a dealer refuses to disclose this very important information to you, find another dealer! Also, the money factor in a car lease is always determined by your credit score. The best scores get the lowest money factor.

Now let’s take a look at how each part of the lease payment is calculated

Depreciation The depreciation cost is actually the largest portion of your lease payment. Here’s how calculate this: (Capitalized Cost - Residual) ÷ Term of Lease Remember, Capitalized Cost is the negotiated selling price of the car. ($25,000 - $12,500) ÷ 36 = $347 $347 is your monthly depreciation cost

Interest The next part of the lease payment is interest. This is where the leasing company makes a large part of its profit. The calculation is: (Capitalized Cost + Residual Value) × Money Factor ($25,000 + $12,500) × .0029 = $109 $109 is your monthly interest payment

Taxes In most states, you will need to pay taxes on both the depreciation and interest payment. Here’s the calculation: (Monthly Depreciation Cost + Interest) × Local Sales Tax Rate($109 + $347) × 7% = $32 $32 is your monthly tax payment

Add it All Up Now we add it all together to come up with the final payment: $347 + $109 + $32 = $488 Monthly Lease Payment

So there you have it, now go make that deal and tell me how much you saved! On my last lease, the salesman told me I was getting a great deal leasing at 600 a month by the time I was finished with him I got it to 375 with a very low down payment, Knowledge is power my friends!

Alicia Fidelman Sales Representative Weichert Realtors 908-346-1783 [email protected]

You can always find my blogs on my social media tabs that are on my website at Aliciaproducesresults.com

#leaseacar #leaseformula

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