Word of the Week: Amoritzation

Defining Mortgage Amortization and Options

Simply put, amortization is a loan that is paid off with a fixed repayment schedule in regular installments over a period of time. Payments may be Fully or Partially Amortized.

Full Amortization

Full amortization is an organized method of repaying a loan by making regular, equal payments. With this method, the loan – or principal – and all of the interest on the loan, is reduced to zero by the loan’s maturity. Traditionally, the payments are made on a monthly basis. And while each payment remains the same, the amount of interest and principal paid each month fluctuates.

Partial Amortization

Partially amortized loans are a series of amortized payments followed by a “balloon payment” (or lump sum) at the loan’s maturity. The balloon payment is the entire remaining balance. A partially amortized mortgage provides much lower monthly repayments, however a massive final payment is due at the end of the contract. Under a partially amortized mortgage, the final payment is larger than any previous payment as it “balloons” on the last installment. This type of payment is often found in commercial lending arrangements. The lower monthly payments can be helpful while the commercial project grows and, the developer hopes, appreciates.

Full or Partial – Which is best for You?

Not sure which type of amortization is right for you? Contact our good friend and Lender, Keith Harris (NMLS ID #: 838973). Keith is committed to spending the necessary time to understanding his clients needs and will tailor a loan best suited for YOU. From mortgage rates to refinancing, Keith and his team at Intercoastal Mortgage can find the best solution for you and your family.

Ashburn Village Townhome Just Listed

Beautiful Ashburn Village Townhouse with Garage Just Listed For Sale

This spacious 3 level, 3 bedroom townhome in Ashburn Village is located at 20480 Cool Fern Square. It features 2 full bathrooms plus 1 half bathroom, along with a spacious 1 car garage and a driveway! Because of it’s close proximity to Routes 7 and 28, the Dulles Toll Road and Dulles International Airport this home is a commuters dream.

The highly sought after Ashburn Village Community offers many amenities to its residents, including: Community Centers, Pools, Lakes, Ponds, Tot Lots, Indoor & Outdoor Tennis Courts, Basketball Court, walking/jogging paths, along with access to the Ashburn Sports Pavilion.

Enjoy shopping and dining just a few minutes away at the Ashburn Village Shopping Center, the nearby Dulles Town Center, and the Leesburg Corner Outlet Mall.

Main Level

Step into the 2-story foyer, with tile floors, a designer light fixture and a coat closet. Head up the stairs to the main level where a Large Family Room features crown molding and a beautiful fireplace.

Enjoy entertaining with direct access to a large deck from the Family Room!

A spacious and bright Kitchen boasts ample cabinet and countertop space, and has a peek-through window overlooking the Family Room. There is even plenty of space for a table.A separate Dining area is located just off the kitchen.

A powder room with a single sink vanity is also found on the main level.

Upper Level

A bright Master Bedroom features a walk-in closet and an additional large closet for extra storage and a ceiling fan. A private balcony is easily accessible through the sliding glass door.In the Master Bathroom, find a beautiful single vanity sink and tiled shower/tub combination. A bright windows allows lots of natural light to fill the room.In addition to the Master, 2 additional bedrooms are located on the Upper Level. Also found on this level is a 2nd shared full bathroom featuring a single sink vanity with a tile shower/tub combination.

Lower Level

A Laundry Room offers a full size washer & dryer and the 1 car Garage has shelving & peg board walls for additional storage.

Don’t miss out on a chance to own this beautiful, move-in ready home in Ashburn Village! Contact Sarah K. Taylor at 703-475-1003 to schedule a private tour.

Word of the Week: Ad Valorem Process

The Ad Valorem Process and How Virginia Property Taxes are Assessed

We’re back with our Real Estate “Word of the Week“! This week we are going to explain what the Ad Valorem Process is.

Ad Valorem Process: The process by which many state and local governments assess real estate taxes for operating revenue. The term “Ad valorem” is Latin for “according to value.” Ad valorem taxes are based on the unique assessed value of the subject property.

There are three types of property: Land, Improvements to Land (immovable man made things), and Personal (movable man made things). Real estate, real property or realty are all terms for the combination of land and improvements. The taxing authority requires and/or performs an appraisal of the monetary value of the property, and tax is assessed in proportion to that value. Forms of property tax used vary between countries and jurisdictions.

Property Tax Assessment in Virginia

In Virginia, property taxes are calculated by multiplying a home’s assessed value by its total property tax rate. State law requires cities to reassess every two years and counties every four years. Since properties aren’t reassessed yearly, the assessed values typically diverge from market values over time. The state of Virginia conducts an annual sales ratio study to determine the ratio of assessed values to market values. While ratios are generally close to 100%, in some cases they are not.

This means that it is entirely possible to notice significant changes to assessed values. According to Virginia state law, total taxes across a tax district cannot increase by more than 1% because of a reassessment. However, taxes on an individual property can increase by any amount. Keep that in mind as reassessment approaches!

The Real Value of Your Home

So, what is my home really worth? The purpose of reassessment is to determine the fair market value of a property. This is the price the property would sell for on the open market. However, as we mentioned above, the assessed price can often diverge slightly. Couple that with the often misleading estimates on popular Real Estate websites, and it can make for a very confusing conversation if you’re looking to sell your home.

Our Real Estate Team does extensive research before presenting a pricing strategy to a client. Homes that have recently sold in the neighborhood and surrounding areas (referred to as “comps” or “comparables”), the tax assessment, as well as current market trends all factor into our price conculsion.

Our Expert Realtors offer a FREE, no obligation consultation and Home Analysis. If you’re thinking of placing your home for sale, we would love help you reach your Real Estate goals. Simply contact us below and one of our Agents will be in touch.

Impeccable One Loudoun Townhome For Sale

Impeccable 3 Level Townhome in One Loudoun Just Listed For Sale

This impeccable 4 bedroom, 3.5 bathroom home is conveniently located at 44744 Maynard Square in the popular One Loudoun – Loudoun’s new downtown!

Community amenities include:
-Community Recreation center with resort-style pool & fitness center
-Playground, tennis & basketball courts
-Sports Plex (outdoor fields)
-Amphitheater
-Miles of paved, pedestrian pathways
-Gourmet Grocer, Specialty Retail & 4-Star Hotel
-Restaurants, bistros, bars & entertainment
-Central Park Plaza with outdoor seating, fountain & interactive entertainment

Home amenities include:
-Large windows that let in lots of natural light
-Spacious, 2 car garage with driveway
-Surround Sound system wired throughout the entire home
-Close to Routes 7 & 28 & the Dulles Toll Road
-Close to Dulles International Airport