Category Archives: Refinance

10 Mortgage Tips for 2013

04 Feb
0
Posted by Posted in Blog, Refinance

If you’ve been sitting on the sidelines, waiting for the best time to refinance or get a mortgage to buy a home, think of 2013 as your last chance to act.

With good credit, persistence and some shopping skills, you can still snag phenomenal deals this year — even if you are underwater on your loan.

Top 10 Mortgage Tips for 2013

Image courtesy to http://blog.badcreditwhiz.com

Here are 10 Mortgage Tips to help you with your mortgage decisions in 2013.

Tip 1: Stop procrastinating and refinance
If you haven’t refinanced recently, you’re probably paying a higher interest rate on your mortgage than you should. Take advantage of today’s record-low mortgage rates while they last. Rates are expected to remain low during the first few months of the year, but they should gradually increase. When they do, many borrowers will regret having missed the opportunity to grab the lowest mortgage rate in history.

Tip 2: Buyers, get moving
With rates near the bottom and home prices on the rise, it’s still a perfect time to buy a house. If you can afford a home and qualify for a mortgage, this may be your last chance to take advantage of the market and own a home for less. To speed up the homebuying process, get a mortgage preapproval before you start shopping.

Tip 3: Compare FHA vs. conventional loans
Many homebuyers opt for a Federal Housing Administration mortgage because it allows them to buy a home with as little as 3.5 percent down. But the already costly FHA fees that are added to your loan will increase again in 2013. As the costs of FHA mortgages rise, some buyers may consider saving a little extra for a conventional loan. Buyers need at least 5 percent down to get a conventional mortgage, depending on their credit. If you can afford the slightly higher down payment, get quotes for FHA and conventional loans, and compare the costs.

Tip 4: Ensure that your credit is golden
Credit standards remain tight. As new mortgage rules are unveiled in 2013, the standards are not expected to loosen. If you plan to get a mortgage anytime soon, you must treat your credit as one of your most valuable assets. Most lenders want to see a spotless credit history of at least a year on your credit report. You’ll need a credit score of at least 720 to get the best rate. Borrowers with a credit score of 680 or more can still get a good deal, but the lower your score, the harder it will be to get approved.

Review your credit report before you apply for a mortgage. Sometimes, paying part of your credit card balances can boost your credit score quickly. Generally, if you are using more than 30 percent of the available credit on your cards, you may be hurting your score. Also, check for credit errors and have them corrected before you apply for a loan.

Tip 5: Want to pay off your mortgage earlier?
If you are one of those homeowners who dream about being mortgage-free, the low-rate environment may be a good opportunity to refinance your 30-year mortgage into a 15- or 20-year loan. But make sure you can really afford the slightly higher payments on the shorter loan and that you have some money saved for emergencies.

Tip 6: Underwater refinancers: Don’t take ‘no’ for an answer
If you owe more than your home is worth and have tried and failed to refinance, why not give it another shot in 2013? The Home Affordable Refinance Program, or HARP 2.0, was revamped to allow homeowners to refinance regardless of how deeply underwater they are.

Even after revisions to the program, many borrowers still found obstacles when refinancing. But the situation is improving. Lenders are much more open to HARP 2.0 refinances these days than they were a few months ago. If one lender says you don’t qualify for a HARP refi, don’t take “no” for an answer, and try to find a lender willing to do it.

Tip 7: Give your lender a chance
If you have trouble paying your mortgage, don’t ignore your mortgage servicer. There are new programs available for borrowers who struggle to keep up with their mortgage payments, including forbearance for those with FHA mortgages. Lenders have been more willing to work out delinquent loans through loan modifications and even short sales for homeowners who can’t afford to stay in their homes. It can be a frustrating process to deal with your lender, but communication is still your best tool.

Tip 8: Shop for a low rate and good service
Even with rates hovering near record lows, you should still shop for the best mortgage deal. Get quotes from at least three lenders and compare not just the interest rate but closing costs and the quality of their service. Favor lenders that have a reputation of closing on time. Start with referrals from friends and relatives when shopping for a lender and read online reviews from other borrowers about the particular lender or mortgage broker you are considering.

Tip 9: Approved for a mortgage? Leave your credit alone
Most lenders order a second credit report for the borrower a few days before closing. Don’t open new accounts or charge up your credit cards at the furniture store while you wait for closing day. New credit lines and maxed-out cards may hurt your score. If you were on the edge when you qualified, your mortgage loan could be rejected at the last minute.

Tip 10: It’s not over until the loan closes
You’ve submitted your mortgage application and locked a rate. The race has just begun. Submit any documents requested by your loan officer or mortgage broker within 24 hours, if possible. Any delays in responding to the lender or in letting the appraiser into your house are wastes of valuable time. Lenders will remain overwhelmed with the large volume of refinance applications at least through the first few months of 2013. It doesn’t take much more than lost paperwork or last-minute requests from your lender to delay your closing. If that happens, you risk losing the locked rate. Follow up with your lender or mortgage broker at least once a week to ensure the process goes smoothly.

close

Originally posted at: http://www.bankrate.com/finance/mortgages/mortgage-tips/#ixzz2JwI1bu1y

 

Tips For Real Estate Listing

10 Dec
0
Posted by Posted in Blog, For Realtors, Refinance

Since listing a property can enable you to draw buyers to your property, your listing should include information about the house, what makes it special and if there are repairs that need to be completed, and so on. Also have a call to action in the description to invite inquiries like, “Ask about lease options / owner financing / special rates for First Time Buyers” …and so on.

My Top 5 Tips For Real Estate Listing

  1. When listing a property, it is important that your clients and you are aware of the fair market value.  You can set a fair market value by researching the price of the houses in the area using the MLS and other tools you can find right online.
  2. All details need to be mentioned in the listing.  Details such as wooden floors, granite countertops, dryers and washers should be included.
  3. Special area and local features such as a great view or historic significance or any other features that are of importance can be mentioned so that this info can catch the buyer’s attention.
  4. Research other listings to get ideas about how to describe your own properties listings.
  5. Identify what people are looking for and focus on these things so that it becomes easier to sell the house to the prospective clients easily. Check out first time buyer rates, for instance, and any other special financing programs to mention in your description and promotions.

The property market has once again started gaining prominence. So take charge of your promotions and you may be able to convert more opportunities into sales if your plan your property listings accordingly.  Follow my tips for real estate listing now!

top

Did you know that you can enjoy the power of Social Media Marketing for YOUR LISTINGS?

There’s nothing to lose here! I have partnered with ePropertySites.com to help many Realtors in giving them the best, proven and tested Social Media Marketing! Interested? Click that button now and let’s get started!

SIGN UP NOW!Sign up for my Social Media Marketing for your Listing!
15 Sep

Bi weekly Mortgages

Bi-weekly mortgage payments reduce the term of the loan, reduce interest payments, and apply more to the principal loan balance.  Bi-weekly payments are equivalent to making one extra mortgage payment per year because there are 26 bi-weekly periods in a year (13 monthly pmts). Taking advantage of an “extra” payment each year of a 30-year mortgage would reduce the term to 24.5 years.  IF you do 1/12 of your TOTAL payment (PITI), then it really adds up!

09 Jun

Austin Homes Sales Volume Down Due To Tax Credit; Price Continues to Slowly Rise

Austin Homes Sales Volume Down Due To Tax Credit; Price Continues to Slowly Rise
 Austin Board of REALTORS® releases April 2011 real estate statistics

May 19, 2011 - According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS®, 1,690 single-family homes were sold in the Austin area in April 2011, 16 percent fewer than the same month of the prior year when the federal homebuyer tax credit expired. At the same time, the median price for Austin area homes was $196,400, three percent more than April 2010.

Judith Bundschuh, Chairman of the Austin Board of REALTORS®, commented on the report, “As has been the case for all of this year, comparisons of year-over-year sales volume are skewed due to last year’s homebuyer tax credits. That’s particularly true for this month, since the most expansive tax credit expired on April 30, 2010, creating a surge in demand that month.”

In April 2011, homes spent an average of 88 days on the market, 28 percent longer than April 2010, but the shortest “days on market” figure in the Austin area since September 2010.

Additionally in April 2011, new listings were down 25 percent, active listings were down 10 percent and pending sales were down 27 percent compared to April 2010.

Chairman Bundschuh continued, “Given that only 16 percent fewer homes were sold in April 2011 than April 2010 without the benefit of a tax credit and that prices for Austin area homes continue to rise, we’re encouraged at the health and strength of our market.”

The volume of leasing activity in the Austin area tapered off in April 2011 with 1,117 properties leased, three percent fewer than April 2010, while the median price for lease property was $1,250, six percent more than April 2010.

April 2011 Statistics

  • 458,676,140 – Total dollar volume of single-family properties sold, 4% less than April 2010.
  • 196,400– Median price for single-family homes,3% more than April 2010.
  • 1,690– Single-family homes sold, 16% less than April 2010.
  • 88– Days on market, 28% longer than April 2010.
  • 3,330– New single-family home listings on the market, 25% less than April 2010.
  • 9,679– Active single-family home listings on the market, 10% less than April 2010.
  • 2,054– Pending sales for single-family homes, 27% less than April 2010.
23 Mar

Vast Majority of Americans Favor Home Ownership:

Vast Majority of Americans Favor Home Ownership:

Despite a historic real-estate market upheaval that sent foreclosure rates skyrocketing and home values plummeting, Americans still have a deep attachment to homeownership. Furthermore, they consider homeownership an integral part of an American Dream in which they still believe, according to poll results announced today by The Allstate Corporation (NYSE: ALL) and National Journal.
The eighth quarterly Allstate-National Journal Heartland Monitor Poll revealed that nearly nine out of 10 homeowners say they would buy their homes again. That percentage held true even among homeowners who said their home values had declined. Seven of 10 Americans say they would advise a friend or family member to buy a home as a long-term asset. However, while homeownership is perceived as a good personal decision, there is much greater uncertainty about whether expanding homeownership should be a government priority.
Although only 35% of respondents expect their personal financial situations to improve over the next year, three-fourths of those surveyed said it is still possible for people like them to achieve the American Dream, which the poll defined as the ability to advance as far as their talents will take them and live better than their parents did. A total of 59% said they currently are living the American Dream. Respondents identified owning your own home as one of the most critical parts of the American Dream, second only to raising a family.

14 Feb

Rates--what happened last week

Mortgage backed securities (MBS) lost -42 basis points last week which caused 30 year fixed rates to move higher and closed at their highest levels of 2011.  As we have discussed several times, mortgage rates are pushed lower when the economy is performing poorly and their is little to no risk of inflation.  So, as the economy continues its upward march out of the recession, mortgage rates are pushed upward on the stronger growth and inflationary concerns. We had a couple of strong economic reports last week. The weekly Initial Jobless Claims were much lower than expected and Wholesale Inventories saw stronger gains.  Both were positives for the economy and therefore negative for mortgage rates.

27 Oct

Record-low mortgage rates will be gone in 2011: MBA

 Average rates on 30-year fixed-rate mortgage expected to jump above 5%

By Amy Hoak, MarketWatch
Last Update: 4:47 PM ET 10/26/10

ATLANTA (MarketWatch) — Mortgage rates may be as low as they’ll get — rates are on course to rise, slowly moving toward 5% by the end of next year, according to the Mortgage Bankers Association’s economic forecast, released Tuesday at the group’s annual convention here.

The group predicts rates on the 30-year fixed-rate mortgage will average 4.4% in the fourth quarter of 2010, increasing to a 4.7% average in the first quarter of 2011, and climbing to 5.1% by the end of next year. That’s barring any “blockbuster” announcement from the Federal Reserve next month, said Jay Brinkmann, chief economist of the MBA.

The Fed has said it could take more policy actions to stimulate growth, and Brinkmann said that’s likely to come in the form of an additional purchase of Treasury securities. But the market has already anticipated that, and the move has already been priced into current rates, he added.

Brinkmann said he expects a pickup in purchase originations next year, but 2011 volume for mortgages to buy a home will still only be roughly at its 2009 level. Refinance business, however, is expected to drop next year, as mortgage rates begin their rise from record lows.

At the conference, many mortgage bankers commented that business right now is doing well, due mainly to high refinance volume in the low-mortgage-rate environment. A large concern for them, however, has been what happens when all the refinance business dries up.

“If [interest rates] do bump up a bit, it’s a big concern on the refinance side,” said E. Todd Chamberlain, executive vice president for Regions Financial Corp., speaking on a panel at the convention. Those who have recently refinanced may be in the same homes — with the same loans — for a long time, unwilling to give up their very low rates by moving or refinancing, he said.

Total mortgage volume is expected to be nearly $1 trillion in 2011, down from an anticipated $1.4 trillion this year and nearly $2 trillion in 2009.

The industry is expected to originate an annual $480 billion in purchase mortgages by the end of this year and $626 billion next year; it’s expected to originate $921 billion in refinance mortgages by the end of this year, which will shrink to $370 billion next year.

Home sales

The MBA forecast predicts home sales will rise slightly next year, after dropping in 2010 from 2009 levels.

Sales of existing homes will finish 2010 about 8% lower than last year, but sales should rise 2% next year and 16% in 2012. And sales of new homes will finish 2010 13% lower than 2009, but sales should rise from that low base by 20% next year and 40% in 2012.

“We also see some upward indication on prices” in many markets, Brinkmann said. Nationally, prices are expected to decline 1% next year, but that decline is heavily weighed down by severely troubled housing markets, including those in Florida and parts of California, he said.

See the latest home-price data from Case-Shiller.

Brinkmann said that there has been a large decline in household formation throughout the country, with many adults who would rather live on their own sharing a roof with parents or roommates due to financial reasons. Others might be marking time in crowded apartments, though their families are increasing in size and they’d rather move to a larger space, he said.

Those people might relocate as soon as the economy improves and more jobs are created: “There is tremendous pent-up demand that is going to respond quickly to job growth,” he said.

Offsetting that, however, are mobility trends. Homeowner mobility is down, partly because of diminished equity in homes and now also because of low interest rates — it’s now going to be more difficult for people to move when it means they will be giving up a 4.5% interest rate on their mortgage, he said.

In its forecast, the MBA anticipates the unemployment rate will increase to 9.9% in the first quarter of 2011. The rate should decrease to 9.5% at the end of next year and to 8.7% by the end of 2012.

The forecast predicts real GDP growth of 2.2% in 2010, 2.1% in 2011 and 3% in 2012.

07 Oct

3rd Fastest-Growing City: Austin, Texas

 

3rd Fastest-Growing City: Austin, Texas
Change in Population, 2000-2008: 32.2%


The capital of Texas, also known as the “live music capital of the world” for events such as the Austin City Limits annual music festival, Austin ranks as the third fastest growing city in the nation by population. Increasing in population by almost a third from 2000-2008, the city is home to a number of major corporations such as Dell (NasdaqGS: DELL – News) and Whole Foods (NasdaqGS: WFMI – News), and a recent deal inked with Facebook promises to bring even more attention to this up-and-coming city.

01 Sep

REBOUND OR DOUBLE DIP? DOTZOUR'S 2011 FORECAST

 

REBOUND OR DOUBLE DIP? DOTZOUR’S 2011 FORECAST

COLLEGE STATION (Mays Business School) – As much of the nation ponders whether the country is in rebound mode or headed for a “double-dip” recession, Real Estate Center Chief Economist Dr. Mark Dotzour sees definite signs of hope for the economy.

“There are signals that the economy is trying to turn the corner,” Dotzour said. “Consumer confidence has increased from a year ago, and consumer spending has resumed its relentless upward trajectory.”

He says the most important positive indicator is that corporate profits have rebounded.

“In a free-market, capitalistic system like America, profit growth is the key indicator,” he said. “When profits are growing, companies hire employees. When profits flatten, they stop hiring. When profits fall, they start to fire people, and they keep on firing people until profits start to increase again. Clearly, most businesses have right-sized their firms sufficiently to regain profitability.”

So why aren’t they hiring people?

“The answer is uncertainty: uncertainty of capital gains and income tax rates; uncertainty about the cost of health care and the possible increase in energy costs due to ‘cap and trade.’ The prospect of new and increased government regulation makes it hard for business to see clearly into the future,” he contends.

Dotzour points out that businesses can buy insurance against risk, but there is only one way to “insure” against uncertainty–and that is to hoard cash.

“There is now nearly $3 trillion sitting in cash on business balance sheets,” he said. “They have much more capital then the Federal Reserve, the FDIC, Fannie Mae and Freddie Mac combined.”

To read more, visit the Mays Business School website.

REBOUND OR DOUBLE DIP? DOTZOUR’S 2011 FORECAST 

COLLEGE STATION (Mays Business School) – As much of the nation ponders whether the country is in rebound mode or headed for a “double-dip” recession, Real Estate Center Chief Economist Dr. Mark Dotzour sees definite signs of hope for the economy. 

“There are signals that the economy is trying to turn the corner,” Dotzour said. “Consumer confidence has increased from a year ago, and consumer spending has resumed its relentless upward trajectory.” 

He says the most important positive indicator is that corporate profits have rebounded. 

“In a free-market, capitalistic system like America, profit growth is the key indicator,” he said. “When profits are growing, companies hire employees. When profits flatten, they stop hiring. When profits fall, they start to fire people, and they keep on firing people until profits start to increase again. Clearly, most businesses have right-sized their firms sufficiently to regain profitability.” 

So why aren’t they hiring people? 

“The answer is uncertainty: uncertainty of capital gains and income tax rates; uncertainty about the cost of health care and the possible increase in energy costs due to ‘cap and trade.’ The prospect of new and increased government regulation makes it hard for business to see clearly into the future,” he contends. 

Dotzour points out that businesses can buy insurance against risk, but there is only one way to “insure” against uncertainty–and that is to hoard cash. 

“There is now nearly $3 trillion sitting in cash on business balance sheets,” he said. “They have much more capital then the Federal Reserve, the FDIC, Fannie Mae and Freddie Mac combined.” 

To read more, visit the Mays Business School website.

28 Aug

Jumbo Loans for More Expensive Homes

If you are looking for a larger home, you most likely will need a larger mortgage.  If you need to borrow more than $417,000, a jumbo or blended jumbo mortgage may be your best option.  Jumbo mortgage programs can give you the extra borrowing power you need, but the costs and guidelines may differ from those that apply to standard mortgage loans. 

Jumbo mortgages are often described as “non-conforming” loans.  This term applies to any mortgage that does not conform to the standard underwriting guidelines set by Fannie Mae or Freddie Mac, the two government-sponsored agencies charged with providing funds to the mortgage industry.  The guidelines, which must be met for a loan to be guaranteed by one of these two entities, set the limit for single-family home mortgages at $417,000 for 2006 ($625,500 in Alaska and Hawaii).  This limit is adjusted annually.

 Jumbo mortgages usually carry a higher interest rate than conforming loans.  Because of the larger loan amount, and because the loan can’t be guaranteed by Fannie Mae or Freddie Mac, the lender absorbs a greater degree of risk.  Also contributing to the lender’s risk is the fact that homes secured by jumbo mortgages may be more difficult to sell than less-expensive homes.

 If the higher interest costs make jumbo mortgages unappealing, but you still need to borrow more than the conformation loan limit, you do have another option.  One relatively common variation of the jumbo loan is known as a “blended jumbo” mortgage.  This financing method allows you to take out a fixed-rate mortgage up to the loan limit, along with an adjustable-rate second mortgage to cover the difference.  The resulting “blended” payment is often lower than what would be required for a jumbo mortgage of the same total amount.

 While the lowest possible dollar amount of a jumbo loan is uniform among lenders (just a dollar more than the Fannie Mae and Freddie Mac loan limit), the highest possible amount is not as distinct.  Different lenders are willing to absorb different levels of risk, and establish their own “ceiling” for jumbo mortgage.  In addition to differentiating between conventional and jumbo loans, many lenders have a separate category for “super-jumbo” loans.  Where the line is drawn between jumbo and super-jumbo, and how the costs and loan requirements differ, also depends upon the lender.  Before you apply, ask what category your desired loan amount fits into.