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Welcome, and thank you for visiting! I hope that you will consider this your resource for real estate information in my hometown, San Diego, America's finest city! I hope you enjoy your visit and explore everything my website has to offer, including information about the communities of Carmel Mountain Ranch, Poway, Rancho Bernardo, Carlsbad & homes for sale throughout San Diego County. You will also find information for homebuyers and sellers, and current real estate news. Please click on the About Us link so I can introduce myself to you, your professional San Diego County Realtor. Be sure to watch my personal video below as well.

Looking for a new home? Use Quick Search or Map Search to browse an up-to-date database list of available properties in the area, or use my Dream Home Finder form and I'll conduct a personalized search for you.

If you're planning to sell your home in the next few months, nothing is more important than knowing a fair asking price. I would love to help you with a FREE Market Analysis. I will use comparable sold listings to help you determine the accurate market value of your home. I would then look forward to meeting with you and sharing my comprehensive market strategy with you.

If you are thinking about buying or selling a home, work with a professional that listens to your needs and cares about YOU. If you value working with someone who believes that excellent, personalized service, professionalism, knowledge and enthusiasm are important, then I am the Realtor for you. I love what I do and I am passionate about helping people with their real estate needs in my home town of San Diego. Please contact me to talk about how I can help you! I have been delivering Million Dollar Service in Every Price Range to clients throughout San Diego since 1994.

Edith's Blog

Other People's Money for College

Consider the goal of funding a child’s college education in the future. If “other people’s money” in the form of a scholarship is not a possibility, there still may be another way to use some “other people’s money.”26458431-250.jpg

A $25,000 investment into a mutual fund paying 5% would earn $1,250 in the first year. Alternatively, the $25,000 as a 20% down payment to purchase a $125,000 rental home appreciating 3% a year would have gone up by $3,750 or three times that of the mutual fund in the first year.

The mutual fund’s growth depends on the value of the money invested. Rental real estate benefits because a 20% down payment controls a much larger asset because you’re using “other people’s money.” Leverage allows the investor to profit not only from the amount of cash invested but from the value of the investment.

With a 20% down payment and current interest rates, a typical rental would have a positive cash flow. In ten years, the equity could be $75,000. On the other hand, the $25,000 initial investment in a mutual fund earning 5% annually would only grow to about $40,000 in the same 10 years. It would require an additional $2,700 each year to reach the same $75,000 value.

Leverage is just one of the many benefits that make rental real estate the IDEAL investment. Whether you are saving for higher education, retirement or wealth accumulation, consider rental real estate. Using single-family homes as investments are attractive because homeowners have a better understanding than many other investments and self-management is a possibility.


Assumptions are an Alternative

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In the late 80’s, both FHA and VA began requiring buyers to qualify to assume their mortgages. The main reason there haven’t been many assumptions in the past 25 years is that interest rates have been steadily going down and if a person has to qualify, they might as well do it on a new loan and get a lower interest rate.

Based on projections by Fannie Mae, Freddie Mac, the MBA and NAR, rates for the second half of 2017 and 2018 are expected to be higher. When interest rates on new mortgages are higher than the rates of assumable FHA and VA mortgages in the recent past, it becomes more advantageous to assume the existing mortgages.

FHA and VA loans originated with lower than current interest rates have great advantages for buyers and sellers.

  1. Interest rate won't change for the qualified buyer
  2. Lower interest rate means lower payments
  3. Lower closing costs than originating a new mortgage
  4. Easier to qualify for an assumption than a new loan
  5. Lower interest rate loans amortize faster than higher ones
  6. Equity grows faster because loan is further along the amortization schedule
  7. Assumable mortgage could make the home more marketable
An Assumption Comparison can help determine the savings and financial benefits of an assumable mortgage with a lower rate.

Family & Friends Mortgage

Anytime a lender and borrower can agree on rates and terms, it can be a good match but IRS has specific rules that govern the transaction especially when the parties are family or friends.26614035-250.jpg

The loan must be done in a business-like manner with a written note specifying the loan amount, interest rate, term and collateral. IRS requires that the mortgage be a recorded lien to allow the interest deduction.

Sometimes, a friends and family situation might have a less than normal interest rate on the mortgage. However, the rate charged in the note is regulated by the minimum applicable federal rate which is published monthly by IRS based on current Treasury securities. For July 2017, the rate is 2.57% for terms over nine years.

The seller must report the interest paid to them along with the name, address and Social Security number on schedule B when the buyer uses the property as their principal residence.  A mortgage between family and friends can be good for both parties. It may allow the borrower a slightly lower rate without the expenses of a traditional lender while giving the note holder a higher rate than they can earn in available investments.

Your tax professional can guide the transaction whether you’re a buyer or a seller and your real estate professional can help arrange to have the documents drawn and filed.


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Edith Broyles
Phone: (858) 735-9446
Email: edith@edithbroyles.com

Coldwell Banker Residential Brokerage
16789 Bernardo Center Drive Suite B
San Diego, CA 92128
CalBRE #01186526

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Testimonials

We cannot thank you enough for your professionalism and guidance! You have been by our side since the beginning! Because of you our experience of buying and selling this house will always be positive memories! Steve and Ashleigh
Edith is the consummate Realtor. When my wife and I listed our house with her, she made some staging suggestions and actually helped with furniture rearranging. During our first Open House, we received two offers and accepted one. When that fell through, She redoubled her efforts to sell our house, and to that end, she brought us a fully qualified cash buyer at a higher price, than the first offer. Edith skillfully guided us through the process and we closed the transaction, all within 35 days of listing the house with her! Thanks Edith for all you superlative work on our behalf! Marc
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