Southern Maryland’s River Concert Series

The River Concert Series is in full swing, with only four performances left.  This year marks the 11th year for St. Mary’s College’s presentation of great music and cultural enrichment to the residents of Southern Maryland.

The July 10th performance (this Friday) features the wonderful music of Rodgers and Hammerstein.  The music selections will be performed by the Chesapeake Orchestra led by guest conductor, Larry Vote.  The audience will be entertained by the famous voices of Diane Atheron (soprano), Olivia Vote (mezzo-soprano), Stephen Cramer (tenor) and Robert McDonald (bartione).

    * The River Concert Series is open to the public and free to all.
    * Sit up front if you are a serious listener and towards the back if you are a serious socializer.
    * Don’t forget to bring your picnic basket with you and a blanket.  Food and drinks will be avialable for purchase.
    * Designated lots for parking will be clearly visible.  There is no parking along Route 5.  All concerts begin at 7pm and gates will open at 5:00 pm.

In addition to the Friday night concerts, the River Concert Series offers other musical presentations as well as movies.  You can see the details for the River Concert Series PLUS here.

Remaining Concerts (click here for details of each concert)

July 10 – Rodgers and Hammerstein
July 17 – The Young and The Gifted
July 24 -, The Real Deal
July 31 - The Big Finish
River Concert Series PLUS

Please note:
In case of bad weather, you can check the St. Mary’s College homepage for any location changes or cancellations.  For more information, please call 240-895-2024.

Southern Maryland weather can change quickly.  If such a situation arises, public safety officers will be on hand to assist the audience to their cars.

Bonnie Augostino, Your Southern Maryland real estate expert

Southern Maryland Interest Rates Are Going Up

All good things must come to an end they say and it looks like that is true when it comes to the lowest interest rates in 40 years.  Interest rates in Southern Maryland and across the nation are on the rise.  Bankrate.com reports that interest rates have risen in the past two weeks from 4.91% to 5.45 percent.  This is the biggest jump in rates in the past six months.  The BaltimoreSun.com reports today’s rate is 5.34% for a 30-year fixed loan.

    * Interest rates are not expected to go below 5%.
    * Interest rates may hit the 6% mark.
    * Interest rates affect your buying power.
    * Interest rates affect you ability to qualify for a loan.

Interest rates are not expected to go below 5%

    * After a quick rise in interest rates, historically, interest rates fall back but only slightly.
    * Economic and mortgage experts do not expect interest rates to fall back below 5%.
    * According to a Mortgage Rate Trend Survey, it is a split decision whether interest rates will even decline slightly in the next 90 days.

Interest rates may hit the 6% mark

    * Bernard Baumohl of Economic Outlook Group states that interest rates could go as high as 6.5% in the near future.

Interest rates affect your buying power

    * A slight increase in interest rates diminishes your buying power by thousands of dollars.
    * Example:

A home purchased for $266,000 with an interest rate of 4.91% equals a mortgage payment of $1414.
A home purchased for $253,500 with an interest rate of 5.34% equals a mortgage payment of $1414.
Your buying power has been diminished by $12,500.

Interest rates affect your ability to qualify for a loan

    * The loan amount you can qualify for is based on your income.
    * Example: Sales price $266,000

At 4.94%, the required yearly income needed is $68,500.
At 5.34%, the required yearly income needed is $71,500.

Homes prices in the tri-county area of Calvert County, Charles County and St. Mary’s County are at the best affordability levels since 2004.  As the housing market stabilizes, home prices will go the way of the interest rates: up.  First-time buyers and repeat buyers can take advantage of the best opportunity in years: low prices and interest rates.

Although, interest rates have gone up, they are still very low.  Anything near the 5% mark is a great rate.  Don’t let opportunity pass you by.

Bonnie Augostino, your Southern Maryland real estate expert

The New Tax Credit For Southern Maryland’s First-Time Buyers

The federal tax credit for first-time buyers is not really new, but how you can use it is.

The first-time buyers’ tax credit now has two options:

    * First-time home buyers can apply the tax credit to their tax filing in 2010 (for the year 2009).
    * First-time home buyers can apply the tax credit to their down payment and/or closing costs when using FHA financing.

The first-time buyers’ tax credit as a down payment:

    * Can only be used with FHA financing.
    * Can only be used to add to the buyer’s FHA required down payment.

The first-time buyers’ tax credit pays closing costs:

    * The tax credit can be applied to certain loan costs when obtaining FHA financing.
    * The tax credit can be used to buy down the interest rate of the loan.
    * The tax credit can be applied to the upfront FHA mortgage insurance premium (MIP) fee (1.75% of the sales price).

The first-time buyers’ tax credit advantages with FHA financing:

    * A bigger down payment means a lower mortgage payment.
    * Buying down the interest rate means a lower down payment.
    * Buying down the interest rate results in saving tens of thousands of dollars in interest over 30 years.
    * Using the tax credit reduces the amount of money you will need to close escrow.
    * Use the portion of the tax credit you need for FHA financing, claim the remainder when filing your 2009 tax returns.

The first-time buyers’ tax credit when filing 2009 tax returns:

    * The tax credit is more cost effective than a tax deduction.
    * The tax credit is a dollar-for-dollar reduction in your tax liability (what you owe).
    * If you owe less than the amount of your tax credit, you receive the remaining balance in the form of a refund.

The first-time buyers’ tax credit means money in your pocket.

    * Using the tax credit with FHA financing when applied to your closing costs or MIP means you have less coming out of your savings.
    * Using the tax credit with FHA financing when applied to the down payment means a lower house payment giving you more money monthly.
    * Using the tax credit with FHA financing when applied to buying down your interest rate means more monthly money and long term savings.
    * Using the tax credit when applied to your 2009 tax return filing means you owe less to the IRS.
    * Using the tax credit when applied to your 2009 tax return could result in a refund check, which can go directly into your pocket.

The federal tax credit offers a great advantage to first-time buyers in addition to the great Southern Maryland real estate market conditions, which are in the buyers’ favor at this time.

The current low-interest rates offer everyone, especially the first-time home buyer, a great advantage in buying now. Interest rates are hovering at the 5% level, but have going up slightly in the past few weeks due to the increased activity in the housing market.

The housing market is picking up.  So first-time buyers should not let the advantages of buying a home in Calvert County, Charles County or St. Mary’s County pass them buy.  As home prices stabilize, home values increase.  It is likely that first-time buyers will never again experience the advantages of a tax credit, low-interest rates and a real estate market which favors buyers all at the same time again.

Bonnie Augostino, your Southern Maryland real estate professional

Real Estate Sales on the Upbeat

Real estate sales are on the upbeat all over the nation.  More importantly, real estate sales have risen locally as well.  It is a mixed bag of news on the real estate housing front and too early for any predictions.  At the same time, more and more of the Southern Maryland real estate news is upbeat.
 
The Upbeat for Buyers:

    *      It is still a buyers market.  There is still an oversupply of homes on the market.
    *      Home sales and prices are lower than the same time last year.
    *      Interest rates are still low – last week they fell to 4.6%.  Today’s rate: 4.78%.
    *      Lower interest and pricing indicates that it requires about $20,000 less income to buy a home today.
    *      Lower interest rates and pricing means you can save an approximate $500 per month on your mortgage payment for the same house bought a few years ago.
    *      First-time Buyers Tax Credit/Refund is still available.
    *      100% financing is still available for qualifying properties via the United States Department of Agriculture’s rural housing development program and the Veterans Affairs loan program.
    *      Lowest prices since 2003 in some areas – The tri-county region experienced a decline in home prices in 2008; statewide homes decreased about 10%.
    *      Foreclosures are up in localized areas.
    *      Affordability index for buyers is up from 46.6% (2006) to 62.2%.

The Upbeat for Sellers:

    *      Inventory is down from a 20 month supply of homes to a 14 month supply.
    *      Waterfront, vacation homes and properties under $300,000 in Southern Maryland are experiencing multiple offers.
    *      Medium sales prices up in Calvert and Charles County – 14% and 4% respectively in March 2009 over February 2009.
    *      The number of homes sold increased more than expected in March over February 2009.
    *      Statewide, sales were up 43% in March over February 2009.
    *      Homes under the $300,000 price range appear to be in recovery.
    *      Lender owned properties are not selling for less than the asking price – banks are willing to wait for buyers to meet their price.
    *      St Mary’s and Calvert County home sales are up 28% over last year at this time.

Market Conditions are very local:

    *      The biggest jumps in home sales are being seen in Maryland’s D.C. suburbs.  Homes prices fell 15% from March 2008 to March 2009.  However, home prices rose as much as 7.5% from February to March of this year.
    *      Baltimore is still experiencing a downward market; the number of sales decreased by 18.5% in the last year.  Prices decreased 1% in March from February 2009.
    *      Dorchester, Frederick, Howard, Montgomery, Prince George and Washington counties are all experiencing an increase in home sales over the number of homes sold for the same period in 2008.
    *      Statewide sales indicate that home sales have increased over the same period last year.

The market has not bottomed nationally or locally.  However, more and more cities, suburbs and neighborhoods are seeing stabilization.  That is the way the real estate market reaches a turnaround as a whole: one neighborhood at a time.  The bottom of the market cannot be predicated.  However, statistics will tell us when the bottom has been reached about six months after the fact.
 
Low prices, tax credit, low interest rates and buyers willing to buy seems to point to a hot summer in real estate sales when compared to recent years.  As a caveat, I did say it is too early and economic factors are still too volatile to make an accurate predication.
 
Bonnie Augostino, your Southern Maryland real estate expert

Cyclists Ride to End Hunger in Calvert County

You will want to use extra caution on Saturday, April 25th, when traversing our roadways.  Over 300 cyclists will be riding the road in a fundraiser to help end hunger in Calvert County.  The organization End Hunger In Calvert County (EHCC) is sponsoring the event.  More than 30 Calvert businesses and community leaders have united together, forming the End Hunger In Calvert County organization.  The group hopes to one day end the sad tale of American families struggling to grace their table with food.
 
The cyclists are on a mission to bring awareness to the needs of less fortunate families in the way of basic food supplies.  They are also working to raise $10,000 to replenish the food shelves at various food panties in Calvert County.  Over 300 cyclists will be participating in the event.  The End Hunger In Calvert County organization is being joined by riders from Calvert County and even as far away as the state of Maine.
 
The current recession has placed many more families at risk.  Support organizations have seen a 40% increase in those needing assistance.  This is not only true in Calvert County, but all over the nation as well.  You can still join in the End Hunger in Calvert County Ride by signing up at the EHCC website.  You do not have to be a pro to be a rider.  There are four established trails.  There is a 62 mile trail for the experienced riders, 48 and 33 mile trails for intermediates and a 15 mile trail for those who just want to ride for the cause and the enjoyment of riding.  The trails begin and end at the Chesapeake Chruch campus.  There is a registration fee of $35 until April 15th.  The fee will go up to $50 on April 16th.  So, hurry and sign up now.
 
If you are not into riding, you can still help the cause by donating food items or cash funds to the End Hunger In Calvert County organization.  Learn how you can help by going to http://www.endhungercalvert.org/how_you_can_help.html.
 
Remember everyone: drive with extra care on April 25th.  We want everyone to return home safely.

Bonnie Augostino, Southern Maryland Real Estate
 
More Information here:
End Hunger In Calvert County Bike Ride Registration: http://www.endhungercalvert.org/registration_info.html
 
EHCC Ride Details: http://www.endhungercalvert.org/ride_details.html
Cheaspeake Church Directions

Save $25 – Plant a Tree

Governor O’Malley has declared April to be Environmental Education Month through out the state of Maryland.  April is also the month the world celebrates Earth Day.  Since April is a very green month in Maryland and because everyone is looking for ways to save money these days, I thought I would share with you a way to do both.
 
You can get a $25 discount coupon from the State of Maryland when you plant a tree costing $50 or more.  You can get your $25 coupon on the newly created Marylanders Plant Trees website.  Marylanders Plant Trees is the website which promotes citizen, community and business participation to plant 50,000 trees by 2010.  The State of Maryland has committed to planting one million trees of its own by 2011.  The website also offers advice and tips on how to select your tree and a recommended tree list. 

Trees not only improve our environment, they also beautify our neighborhoods, add curb appeal to homes and add to property values.  In addition, trees can reduce your energy costs by as much as 35%.  After you have printed you coupon and planted your tree, you will want to return to the Marylanders Plant Trees website and register the tree.  An interactive map showing all the newly planted trees will be added to the website sometime in the future.

You can go green, celebrate Earth Day, learn more about your local environment, improve the environment, add to sustainable living and help your state meet its goal all by just planting a tree while saving money at the same time!

Bonnie Augostino, Southern Maryland’s Real Estate Professional, The Difference Is Crystal Clear

Related Links:
Marylanders Plant Trees – Cooperating Vendors
Marylanders Plant Trees – Tree Benefit Calculator
Maryland’s Environmental Education Department
Citizen Environmental Participation
April Proclaimed Environmental Education Month

Stimulating Southern Maryland Real Estate

Before I begin, let me say Happy Saint Patrick’s Day to all the beautiful Irish out there and to all the Irish by default (everyone is Irish today).  Now, back to the meat of the matter.  Stimulating the economy and the housing market are hot topics in today’s economic world.  I thought I would share a few things that may help to stimulate the Southern Maryland real estate market.
 
Tax Credit – First-time Buyers:

    *      The tax credit is for first-time home buyers only!  If you have not owned a home within the last 3 years, you qualify as a first-time home buyer.
    *      The tax credit may only be applied to homes that will be your principal residence.
    *      The tax credit does NOT have to be repaid.  The tax credit of 2008, however, must be repaid.
    *      The tax credit is not $8,000 but is equal to 10% of the home’s purchase price with a maximum of $8,000.
    *      The tax credit applies only to homes purchased on or after January 1, 2009.  Escrow must close no later than November 30, 2009.
    *      The tax credit income limits: married couples income limit is $150,000 and single taxpayers income limit is $75,000.
    *      The tax credit has an income limit phase out: for those who exceed the income limit, there is a smaller tax credit.  The tax credit is dependent on the adjusted income.  Please consult with a tax professional to see if you would qualify.
    *      The tax credit will be applied to your 2009 taxes.  Sometimes, the tax credit can be applied to your 2008 taxes.  Consult with a tax professional as to how the tax credit will best benefit you.
    *      The tax credit is refundable.  If the taxes you owe are less than the tax credit, the difference will come to you in the form of a tax refund.
 
Tax Credit – Homeowners

    *      Tax credit applies to homeowners making energy efficient improvements to their principal residence.
    *      Tax credit limit is 30% of the cost of the improvement(s) up to $1,500.  $4,500 in improvements equals a $1,500 tax credit.
    *      Tax credit applies to energy improvements, such as insulation, water heaters, doors, windows, heating and air systems.

Reverse Home Mortgage Loan Limits

    *      Loan limits for FHA-insured reverse mortgage loans was increased to $625,000.
    *      Senior citizens can buy a new home (with equity) with a reverse mortgage loan without having to sell their current home.
 
Conforming Loan Limits Restored

   *       The maximum loan limit for high cost areas has been restored to $729,750.
 
Homeowners Refinance Program – Not Behind In Payments

    *      Homeowners who have less than 20% equity may refinance their loan.
    *      Homeowners may refinance up to 105% of their home’s current value.
    *      Refinanced loans will be refinanced at the prevailing interest rate and terms at the time of the loan.  Currently, loans are hovering near 5%.
    *      Refinance options include a 15- or 30-year fixed rate option.
    *      Refinance loans are intended to lower your payment with a lower interest rate; it will not lower your principal balance or waive any debt.

Homeowners Refinance Program – Behind In Payments

    *      Only applies to the homeowner’s principal residence.
    *      Multi-family units may qualify if one of the units is owner-occupied.  Please consult with your tax adviser.
    *      Applies only to first mortgages.
    *     If a property has a second mortgage, the homeowner can still qualify but cannot refinance the second loan under the refinance program.
    *      Loans must be backed by Fannie Mae or Freddie Mac.
    *      Loans may not exceed current loan limits.
    *      Principal loan balance may be lowered with approval by the lender.
    *      Homeowners may earn a tax credit.  The homeowner must stay in the home for five years.  The maximum tax credit is $5,000.

The information above is a short summary of the various programs and is intended to be straight forward.  However, there may be other qualifying factors.
 
Bonnie Augostino, Southern Maryland Realtor

Calvert County Helps Residents Clean Up

Last week’s storm left quite a mess here in Calvert County.  The Calvert County Department of Public Works Solid Waste Division is offering to help residents dispose of the debris from the storm.  Residents can dispose of storm debris at the Appeal and Barstow Landfills free of charge until March 28th.  Green debris, such as leaves, trees, tree branches and limbs, shrubs and bushes, will be accepted at both landfills.  After March 28th, debris will only be accepted at the Appeal Landfill and normal fees will apply.  A fee will apply to all other storm-related debris, such as carpeting, roofing, drywall and insulation.  In addition, these items will only be accepted at the Appeal Landfill.
 
Appeal Landfill Hours:
Monday – Saturday
8 a.m. – 4 p.m.
 
Barstow Landfill Hours:
Monday – Friday
7 a.m. – 2 p.m.
Saturday
7 a.m. – 4 p.m. 
 
For More Information:
Website: Calvert County Department of Public Works Solid Waste Division (http://www.co.cal.md.us)
Phone: 410.326.0210
Email:  teterwj@co.cal.md.us, Bill Teter, Recycling Coordinator

Charles County Residents – Don’t Hang Up!

Charles County residents will need to exercise a little caution before hanging up the phone.  The Charles County Sheriff’s Office is conducting a campain to make residents aware of their new notification procedures.  The Charles County Sheriff’s Office has recently announced that Charles County residents will receive automated phone calls to inform residents regarding local emergencies or crime alerts.  The automated system has already notified residents about a water main break in December and Waldorf residents were alerted about residential burglaries taking place in their area.
 
Charles County has recently upgraded their automated phone system.  The new system will save money in the form of man hours.  Previously, notifications were conducted door-to-door.  With the new system, more citizens can be contacted within a short space of time.  Currently, the Sheriff’s Office has over 80,000 phone numbers in its database.  The automated system allows up to 24 citizens to be notified at one time.
 
The automated system features a computerize map which allows law enforcement to draw geographical area maps according to the current situation.  Residents within that geographical map would then be notified.  Automated phone calls can be annoying, I know.  But, don’t hang up until you are sure it is not the Charles County Sheriff’s Office contacting you with important information in your neighborhood.

Bonnie

New Guidelines for Homeowner Septic Grants

New guidelines for funding new septic systems for eligible homeowners have been approved by the Calvert Board of County Commissioners.  The grants are funds which are available for homeowners to replace failing septic systems. In the past, all homeowners in environmentally sensitive areas, the Mill Creek watershed and areas 1,000 feet from tidal wetlands or shorelines received priority consideration.  Under the new guidelines, homes that have been assessed at less than $250,000 and/or are occupied throughout the year will now receive priority.
 
The funds for the grants to Maryland homeowners are received from the Bay Restoration Fund.  This year, Calvert County received $1.6 million in funds for the program.  Available funds will pay for about 95 new systems.  125 homeowners have applied for a grant.
 
Failing septic systems cause approximately 25% of the nitrogen pollution in Calvert County’s waterways.  In the Mill Creek area, that figure doubles.  Nitrogen from failing septic systems can seep into the waterways.  This seepage causes algae blooms, which kill off fish and other water dependent life.
 
The funds for the Bay Restoration Fund are received from the “flush tax”.  The “flush tax” was imposed to help programs which protect the Chesapeake Bay and is tributaries.  Homeowners on sewer pay a monthly sewer fee.  Homeowners with septic systems pay a yearly assessment fee.  The “flush tax” monies are collected by the county and given to State of Maryland.  The state then distributes the funds to various projects that lower nitrogen discharge.  As well as assisting homeowners replacing failing septic systems, monies are also directed to farmers which plant cover crops; the cover crops reduce nutrient runoff into the waterways.

For more information on this and any help with your South Maryland real estate, please feel free to contact me.