Austin Real Estate Blog

The process of purchasing a home or property is often confusing enough without the industry jargon. In an effort to alleviate that confusion that comes from some of the jargon, below is a short list of terms and the meanings. In order to help further the understanding of terms associated with the real estate purchase process here are some mortgage specific definitions and explanations.

Two step Mortgage – this is a hybrid home loan that starts as a fixed rate for an agreed upon number of years. When those years have passed the interest rate will become adjustable. Some examples of this kind of mortgage are the 5 and 7 One ARM (adjustable rate mortgage)

Balloon Mortgage – this is a steady monthly mortgage that will amortize over time and will provide a lump sum payment due at the end of the term. This price will cover interest, principle, and in rare cases taxes. Amortization can and does occur over a long period of time, even beyond the loan term.

Budget Loan – the loan payments for this are designed to cover taxes, insurance, interest and principle on the home mortgage loan. This is a convenient method of assuring your homes needs are covered. It is also possible to do the same with an escrow account.

Your Austin real estate agent will be well versed in the industry terms. With that in mind they will be able to help you to understand what applies directly to your situation and what should. Ask questions or refer back to this site for more informative data.

Of the Top 10 places in the country to live, Austin has always ranked high or at the top. This has not changed. The research done at Forbes has once again found Austin tops, in this case it is tops for being one of the best places to stretch your dollar. Austin is number one in the top bargain cities. What you spend here you will get you farther than in any place in the country. This is based on 4 criteria and is out of 50 major metropolitan areas surveyed.

Here are Austin’s rankings and some more Austin accolades:

Regarding best or lowest cost of living, Austin ranks 3 out of 50. For housing opportunities, as in open homes for rent or sale, Austin’s metropolitan area ranks 24 of 50. The unemployment rate they are 1 of the 50 cities, meaning of all the cities surveyed, Austin has the lowest unemployment rate and the most jobs or job growth. Regarding the average salary in Austin, it ranks 20th of the 50 cities. These stats combine to create the best reason for people to love to live in Austin.

As often as Forbes does their surveys, Austin continues to surprise them by topping the lists. From green recognition to best bang for your buck, this is the place to live. Moving to Austin is easier than ever, with the right Realtor. When are ready to move, contact the team here to find your place to live in this wonderful city we call Austin.

It is certainly no secret by now that we are in a recession. The start of our current situation was first recognized when the national real estate market began to flounder on 2007. While some areas of the country were hit harder than others, Texas has stayed fairly level throughout the recent crisis. The main reason for this is that while many states experienced a dramatic increase in home values and prices, Texas remained outside the bubble. When it burst, the state was hardly touched. Even now, as foreclosure rates skyrocket, Texas has stayed among the healthiest real estate markets in the nation.

The main reason that the real estate market burst its bubble is actually very simple. When the economy was healthy and house values were increasing, many lenders forgot how to properly handle a mortgage application. Credit scores, and even employment records, became a thing of the past. Creative lending practices came into play where there was little to no down payment necessary.

While the initial payments were certainly something that home buyers could afford, later down the road these monthly payments would jump significantly and the new homeowners were unable to pay them. Add to this already stressed market that home values began to decline. Now, not only could the mortgage not be paid, but the house was no longer even worth that amount. There was nowhere to go but down.

Throughout this trying ordeal, Texas, and several of its larger cities, has maintained an excellent real estate market. Texas as a whole made less risky loan choices, so it has basically avoided the real estate bubble burst. Supply and demand in Texas has remained stable throughout the last few years. While the state has seen an increase in foreclosures, it remains much lower than the national numbers. Texas is expected to stay on the edges of our worsening economy and fare better as a state than most others.

Looking for ways to cut down on that electric bill? Look no further than your child’s hamster cage and that annoying, squeaky wheel it’s so fond of. With a few minor modifications, and a hundred more hamsters and wheels, and you can kiss the grid goodbye forever. As an added bonus, hamsters seem to breed spontaneously so, as long as you have a good supply of food and water, you will be able to maintain a healthy, hard-working colony with little effort or cost.

As for the rural homeowner, the common dairy cow could not only be a source of milk but of fuel for the family car. Cows are fond of eating large quantities of hay and grass, which they are more than happy to naturally convert to methane gas, as is quite evident if you’ve ever visited a farm. Some minor conversion to the milking parlor equipment, as well as to the vehicles, and you have a ready supply of very potent fuel.

Dogs, and to a lesser extent, cats can be a viable substitute for that electric blankets that sucks up electricity. In fact, in ancient China, dogs were utilized frequently to keep master, mistress, and children warm during cold winter nights. The severity of the temperature was gauged by how many dogs were needed to keep the sleeper comfortable. A fairly frigid night, therefore, was commonly referred to as a Three Dog Night.

If you’ve read this far, and still think this is for real, then all I have to say is Happy April Fool’s Day!

As a real estate professional, I do a lot to stay on top of the ever changing trends in housing, finance, legislation, and especially green living. One of the magazines that I subscribe to is Natural Home. It’s a pretty cool magazine with quality writing and good coverage. If you are interested in natural living, green building, eco-friendly lifestyles, I highly recommend that you check the magazine out.

The latest issue named Austin’s Mueller (pronounced Miller) redevelopment project one of the magazine’s top 10 eco-friendly communities. It’s good to see that Austin is taking the lead in the green revolution. If you have any green stories, please share them and I’ll post them here. Below is an excerpt from the article. You can read the full article at Natural Home.

Natural Home Top 10: Eco-friendly Neighborhoods

By Laurel Kalenbach

Our picks for the nation’s best green housing developments emphasize communities working toward sustainability by incorporating green building, energy efficiency and reuse of previously developed land. Several are enrolled in the U.S. Green Building Council’s LEED (Leadership in Energy and Environmental Design) programs such as LEED for Neighborhoods (LEED-ND) or LEED for Homes. (For more on LEED-ND, see page 23). Our 10 favorites are listed alphabetically by city.

Austin, Texas
Mueller

The old municipal airport—just minutes from the University of Texas and downtown—is a 711-acre redevelopment with homes, shops, businesses, restaurants, an elementary school and parks. Austin Energy is certifying all buildings to high efficiency.
www.MuellerAustin.com

• Green options for homes, including tankless water heaters, programmable thermostats, solar panels
• Graywater reused for low-water, native landscaping
• 25 percent of housing for lower-income owners or renters Hangars reused as info centers and possible entertainment venue
• Anticipated LEED Platinum status for Dell Children’s Medical Center and Ronald McDonald House

Chapel Hill, North Carolina
Greenbridge

With 98 residential condominiums, street-level retail, renewable building materials, planted roofs, and solar hot water and electricity, Greenbridge is a downtown revitalization project promoting human and ecological health.
www.GreenbridgeDevelopments.com

Denver, Colorado
Stapleton

A former airport site, Stapleton is the largest urban-infill redevelopment project in the United States, with 4,700 acres of reclaimed land just 10 minutes from downtown. Six million tons of runway concrete were reused to make bike paths and bridges. The development is in the LEED-ND pilot program.
www.StapletonDenver.com

Grayslake, Illinois
Prairie Crossing

Committed to minimizing its impact on the environment, this suburban community preserves 60 percent of its 677 acres as prairie, wetlands and organic farmland. It also has 359 single-family houses, 36 condos, many shops, a café and commuter trains to Chicago. Prairie Crossing’s Station Village is in the LEED-ND pilot program.
www.PrairieCrossing.com

Issaquah, Washington
Issaquah Highlands

This 2,240-acre urban village east of Seattle in the Cascade Mountain foothills balances green space and trails with homes, townhouses, multifamily buildings and an elementary school. The community is building 3.9 million square feet of LEED-certified commercial and retail space.
www.IssaquahHighlands.com

North Charleston, South Carolina
Navy Yard at Noisette

Located on the former Charleston Naval Base, this 340-acre brownfield redevelopment will house 7,000 families and become part of the city’s sustainable urban revitalization. All structures are built to a minimum LEED Silver standard.
www.NavyYardSC.com

Portland, Oregon
Helensview

This high-density, low- to moderate-incoming housing neighbor- hood in northeast Portland is being developed by a nonprofit that helps renters become homeowners. It will have 53 single-family houses and condos that qualify for LEED for Homes and LEED-ND programs.
www.HostDevelopment.com

Salem, Oregon
Pringle Creek Community

Located on 32 acres of redeveloped land, this community integrates 130 carbon-neutral/net-zero-energy residences—including single- and multi-family houses, cottages, row houses and apartments—with LEED-certified retail, work spaces, parks and community buildings.
www.PringleCreek.com

Seattle, Washington
High Point

This neighborhood replaces a rundown public-housing project. The new High Point mixes subsidized and market-rate homes and includes a health clinic, library, grocery store and parks. Its natural drainage system has native plants and swales that filter and divert stormwater to protect a salmon stream.
www.TheHighPoint.com

Staten Island, New York
Markham Gardens

This 13-acre, 290-unit revitalization of World War II public-housing includes 240 apartments and duplexes for low-income renters and 50 affordable housing units. It’s on track for LEED Silver certification.
www.PrattCenter.net/arch-markhamgardens.php