A bonus for today - Mortgage brokers do it cheaper and better! This article points out that Brokers are working longer hours and doing a lot more work - guess they want your business?
MORTGAGE BROKERS
I must agree, after 15 years in real estate, I would choose brokers first, direct lenders (Chase, Countrywide, etc.) second, local banks third, and internet lenders last!
Wednesday, July 18, 2007
TAX DEDUCTIONS AFTER RE-FI
An article that asks if you are getting all the available tax deductions you are entitled to on re-fi or second home. Pretty much anything will qualify if it has sleeping, cooking and toilet facilities. Second homes, RVs and Mobile Homes? And how about lines of credit, home equity loans or anything that is secured by your home? And if you do a re-fi, check on other provisions relating to points and some other costs that might qualify. Best you talk to your CPA before going too far afield.
TAX DEDUCTIONS
TAX DEDUCTIONS
Monday, July 16, 2007
UNDERSTAND YOUR MORTGAGE
When you obtain a mortgage loan, you will be required to sign a large number of documents, all of which contain terms which are a mystery to many potential homebuyers.
UNDERSTAND YOUR MORTGAGE
You have a copy of all the papers you signed and all the attachments. Do you know where those papers are? If you are in an ARM, Interest Only, O% Down, or any of the many "non-conforming" loan products, it is important to drag out those papers and make a point of reading what you signed. Most folks never do - join the minority!
Bottom line, you need to know what lies ahead in 2 years, 5 years or 10 years. Ever hear about the "balloon mortgages" of the 1990s - you might have the 2000s version of a directly related cousin with a new name. Find out while you still have the window of opportunity to sign on for a fixed rate mortgage. Whatever caused you to choose the original, even a "sub-prime" mortgage, over a "conforming" 30 year fixed product may well have changed. Chances are you can get a loan in the fixed 6% to 7% region. Sounds like a lot, but, many of us started back in the 1960s at 9%, in the 1970s and 1980s into as high as 20+%! And yes, I went to a 6 room schoolhouse in Northern Indiana and had to walk up-hill through 3 feet of snow to get there, and back!!!
Okay, it was really only up hill in one direction. However, the interest rates stated above were all to real! Don't let 6+% keep you from avoiding the serious consequences that may lie ahead. Read your loan docs and, if appropriate, take action.
600,000 HOMEOWNERS MAY RUN INTO TROUBLE
If that doesn't spur you into action, I wish you my very best and will include you in my prayers tonight.
Meantime, release your emotions and concerns with this rather bizarre video if you have high speed internet:
ONE NIGHT OF FIRE
UNDERSTAND YOUR MORTGAGE
You have a copy of all the papers you signed and all the attachments. Do you know where those papers are? If you are in an ARM, Interest Only, O% Down, or any of the many "non-conforming" loan products, it is important to drag out those papers and make a point of reading what you signed. Most folks never do - join the minority!
Bottom line, you need to know what lies ahead in 2 years, 5 years or 10 years. Ever hear about the "balloon mortgages" of the 1990s - you might have the 2000s version of a directly related cousin with a new name. Find out while you still have the window of opportunity to sign on for a fixed rate mortgage. Whatever caused you to choose the original, even a "sub-prime" mortgage, over a "conforming" 30 year fixed product may well have changed. Chances are you can get a loan in the fixed 6% to 7% region. Sounds like a lot, but, many of us started back in the 1960s at 9%, in the 1970s and 1980s into as high as 20+%! And yes, I went to a 6 room schoolhouse in Northern Indiana and had to walk up-hill through 3 feet of snow to get there, and back!!!
Okay, it was really only up hill in one direction. However, the interest rates stated above were all to real! Don't let 6+% keep you from avoiding the serious consequences that may lie ahead. Read your loan docs and, if appropriate, take action.
600,000 HOMEOWNERS MAY RUN INTO TROUBLE
If that doesn't spur you into action, I wish you my very best and will include you in my prayers tonight.
Meantime, release your emotions and concerns with this rather bizarre video if you have high speed internet:
ONE NIGHT OF FIRE
Thursday, July 12, 2007
2008 HOME PRICE EXPECTATIONS
A new forecast by the National Association of Realtors suggests existing-home sales will pick up late this year and prices are likely to rise by 1.8% in 2008. This is consistent with my comments in my blog of yesterday.
2008 HOME PRICE EXPECTATIONS
I do hope they are right!
2008 HOME PRICE EXPECTATIONS
I do hope they are right!
Wednesday, July 11, 2007
CURRENT EAST VALLEY MARKET INFLUENCES
The country's fifth largest city is in the desert, according to the latest Census Bureau estimates. Now, to whom do you suppose this article is referring?
Head Count Shows Shifting Population
Note that they are only referring to the city of Phoenix when they state that 43,000 were added to the population between 2005 and 2006. This is over 117 people per day, folks.
To get the full picture for the Phoenix Metro Area, go to:
Maricopa County MapStats
You will find that Maricopa County population is estimated at 3,768,123 at the end of 2006. A little quick math comparing the 2000 population to 2006, per the census, says "The County" has been growing at 116,000 people average per year for the last 5 years. That's roughly 3% per year! And over 317 people per day!
I am frequently asked if the home we are looking at will appreciate. I have no crystal ball! However, allowing for the fact that we had a lot of mis-guided "out of state" investors in year 2005 (no population change - just houses sold) that are licking their wounds and creating a Buyer's market (stabilization phase), and given that our rental vacancy rate is way down, appreciation is more likely a "when" than "if" question.
Meantime, it is more difficult for 1st time home buyer's as several lenders have fallen by the wayside for too many risky loans and have put many homeowners in jeopardy as highlighted by this article:
Home Equity Loan Delinquencies Rise
I should note that Maricopa County Bond money is available for "no down payment" loans as this is written.
So, we are in a "stabilization period", even with continuing population growth.
Bottom line - Maricopa County, and particularly the East Valley, will be at the forefront of the national housing recovery. Continued population growth, the general shift of population from the cold regions, tornado states, and hurricane alley, and continued strong employment opportunities will put us back on the Appreciation Track!
Anybody for a pool as to when that day will come?
Head Count Shows Shifting Population
Note that they are only referring to the city of Phoenix when they state that 43,000 were added to the population between 2005 and 2006. This is over 117 people per day, folks.
To get the full picture for the Phoenix Metro Area, go to:
Maricopa County MapStats
You will find that Maricopa County population is estimated at 3,768,123 at the end of 2006. A little quick math comparing the 2000 population to 2006, per the census, says "The County" has been growing at 116,000 people average per year for the last 5 years. That's roughly 3% per year! And over 317 people per day!
I am frequently asked if the home we are looking at will appreciate. I have no crystal ball! However, allowing for the fact that we had a lot of mis-guided "out of state" investors in year 2005 (no population change - just houses sold) that are licking their wounds and creating a Buyer's market (stabilization phase), and given that our rental vacancy rate is way down, appreciation is more likely a "when" than "if" question.
Meantime, it is more difficult for 1st time home buyer's as several lenders have fallen by the wayside for too many risky loans and have put many homeowners in jeopardy as highlighted by this article:
Home Equity Loan Delinquencies Rise
I should note that Maricopa County Bond money is available for "no down payment" loans as this is written.
So, we are in a "stabilization period", even with continuing population growth.
Bottom line - Maricopa County, and particularly the East Valley, will be at the forefront of the national housing recovery. Continued population growth, the general shift of population from the cold regions, tornado states, and hurricane alley, and continued strong employment opportunities will put us back on the Appreciation Track!
Anybody for a pool as to when that day will come?
Wednesday, July 4, 2007
SMARTEN UP ON LENDING
From the National Association of Realtors (NAR) on July 1, 2007:
"CNN: "Looking for Ways Out of the Subprime Mortgage Crisis",
USA Today: "Neighborhood Finds Real Estate Loans Too Good to Be True",
Washington Post: "Foreclosure Rate Hits Historic High""
"Abusive and predatory lending practices are a serious problem for our nation's communities. Because of abuses in the subprime market, families are losing their homes and savings, foreclosure rates are higher, and some neighborhoods face increased vacancy rates. Empty neighborhoods, or those where the majority of houses are for sale, can be perceived as blighted. This leads to declining prices and inevitably devastates the strength and stability of those communities and the families who live there.
How Did This Happen? During the real estate boom, many lenders originated risky mortgages with floating interest rates and weak underwriting standards. While some in the media may have over-dramatized the situation, a number of subprime lenders that made problematic loans have gone out of business, and the delinquency rate for subprime loans at the end of 2006 was more than 13 percent--4.5 percent are in foreclosure."
The solution is education before you begin the lending process. The following from the NAR will provide you the knowledge to avoid these lending disasters:
http://www.realtor.org/subprime_lending.nsf/Pages/responsible_lending_principles?OpenDocument
Start prepared and enjoy the home buying process to the fullest!
"CNN: "Looking for Ways Out of the Subprime Mortgage Crisis",
USA Today: "Neighborhood Finds Real Estate Loans Too Good to Be True",
Washington Post: "Foreclosure Rate Hits Historic High""
"Abusive and predatory lending practices are a serious problem for our nation's communities. Because of abuses in the subprime market, families are losing their homes and savings, foreclosure rates are higher, and some neighborhoods face increased vacancy rates. Empty neighborhoods, or those where the majority of houses are for sale, can be perceived as blighted. This leads to declining prices and inevitably devastates the strength and stability of those communities and the families who live there.
How Did This Happen? During the real estate boom, many lenders originated risky mortgages with floating interest rates and weak underwriting standards. While some in the media may have over-dramatized the situation, a number of subprime lenders that made problematic loans have gone out of business, and the delinquency rate for subprime loans at the end of 2006 was more than 13 percent--4.5 percent are in foreclosure."
The solution is education before you begin the lending process. The following from the NAR will provide you the knowledge to avoid these lending disasters:
http://www.realtor.org/subprime_lending.nsf/Pages/responsible_lending_principles?OpenDocument
Start prepared and enjoy the home buying process to the fullest!
Sunday, July 1, 2007
TIME FOR YOUR ANNUAL CREDIT CHECKUP
If and when you even think about buying a home, you want to ensure your credit history is at it's best. Your FICO score will determine if you can qualify for a "conforming" loan, the industry, FNMA and FMAC, standard loan. More important for the long term, your FICO score will determine what rate of interest you will be paying for the next 30 years or so. The best interest rates are offered to those with scores in the 760 to 850 range (6.313% National Average on 7-1-07) to 6.819% (660 to 699 range) or 9.930% (500-579 range). If your FICO is less than 500, even renting could be a problem!
A free, one time a year, free credit report is available to you. This web site will also give you the opportunity, separate from the free report, for $7.95, to get a copy of your FICO score (Equifax Credit Reporting Service). The other 2 credit reporting services offer similar options. All three services (called a tri-merged report) are used by lenders so each must be corrected for any problems.
This is the web site for all three services, and you can get the free report from each:
If you find problems with your report, real or errors, there are options for improving and correcting these items. A good place to start is the FICO web site:
A free, one time a year, free credit report is available to you. This web site will also give you the opportunity, separate from the free report, for $7.95, to get a copy of your FICO score (Equifax Credit Reporting Service). The other 2 credit reporting services offer similar options. All three services (called a tri-merged report) are used by lenders so each must be corrected for any problems.
This is the web site for all three services, and you can get the free report from each:
If you find problems with your report, real or errors, there are options for improving and correcting these items. A good place to start is the FICO web site:
If you know there are problems with your credit history, get started now! You will wish later you had as you suffer the penalties and pain of trying to buy your home. Good luck!
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