The government's loan modifications program which was sold as a program that will help more than 5 million is still failing to live up to they hype. The program has only helped provide 421,804 home owners with loan modifications since it began. Which is great, until you know how much it has costed tax payers in America.
The government has spent over $75 billion to help over 400,000 home owners with loan modifications. If you do the math, each modification comes with a price tag over $177,000. While this number has come down slightly from when I first reported this "bank bailout," it's still obvious this was a horrible thought out program or well though out bank bail out.
Monday, August 30, 2010
Friday, August 20, 2010
Real Estate Niche
If you could, would you work with your ideal client on every transaction? Over the next few weeks we are going to help you with creating a niche.
A lot of agents avoid developing a niche because they don’t want to “limit” their business. However, creating a niche doesn’t limit your business, but allows you to focus your marketing time and money on your “ideal client.” Establishing your expertise within your niche is not an overnight transformation. While you are building your niche you will continue to work with all clients even though they don’t “fit” your niche. However, in time you will have the ability to only work with your “ideal clients” and refer all other prospects to other agents.
First you must decide what YOUR NICHE will be. Consider the following questions when determining your niche:
• What defines you?
• What are your interests?
• Who do you like working with? Who are your friends?
• Who were your past clients that you enjoyed working with the most?
• What are you doing when you’re not a Realtor?
• Where do you live?
Take some time to think about your niche and remember the greater the passion for your niche the less work you will be doing.
Check out this article for more information
http://www.brokeragentsocial.com/article/485/breaking-down-niche-economics-how-what-where-and-when
A lot of agents avoid developing a niche because they don’t want to “limit” their business. However, creating a niche doesn’t limit your business, but allows you to focus your marketing time and money on your “ideal client.” Establishing your expertise within your niche is not an overnight transformation. While you are building your niche you will continue to work with all clients even though they don’t “fit” your niche. However, in time you will have the ability to only work with your “ideal clients” and refer all other prospects to other agents.
First you must decide what YOUR NICHE will be. Consider the following questions when determining your niche:
• What defines you?
• What are your interests?
• Who do you like working with? Who are your friends?
• Who were your past clients that you enjoyed working with the most?
• What are you doing when you’re not a Realtor?
• Where do you live?
Take some time to think about your niche and remember the greater the passion for your niche the less work you will be doing.
Check out this article for more information
http://www.brokeragentsocial.com/article/485/breaking-down-niche-economics-how-what-where-and-when
Tuesday, August 10, 2010
FHA Guideline Changes
FHA announced over the weekend that they will be changing their mortgage insurance premiums effective September 7, 2010. Currently, borrowers obtaining a FHA loan pay 2.25% for upfront mortgage insurance and 0.55% for monthly mortgage insurance. For a $200,000 mortgage the mortgage insurance would be $4,500 and $93.73/month.
On loans after September 7th FHA borrowers will pay 1% for upfront mortgage insurance and 0.90% for monthly mortgage insurance.
While home owners will end up paying more for mortgage insurance in the long run, this was a necessary change to keep FHA above water. FHA has taken major hits in the last few years and changes needed to be made for the program to continue.
On loans after September 7th FHA borrowers will pay 1% for upfront mortgage insurance and 0.90% for monthly mortgage insurance.
While home owners will end up paying more for mortgage insurance in the long run, this was a necessary change to keep FHA above water. FHA has taken major hits in the last few years and changes needed to be made for the program to continue.
Monday, May 17, 2010
Need to Sale, but Underwater?
With almost half of Colorado home owners underwater on their home there are a lot of people wondering what to do when they have to move? Bankruptcy? Foreclosure? Short Sale? Or do you keep the house and convert in to a rental? None of the options are great, but what is the best of all evils?
There is no right answer for every one, however, more lenders are starting to allow clients to purchase a new house after a short sale is completed with NO seasoning requirements. FHA announced this change in guidelines in December of 2009, however lenders still required applicants to wait 2-4 years after a short sale to be eligible for a new mortgage. A majority of lenders still require borrowers to wait, but there are a few lenders that will now let you obtain a new mortgage immediately.
However, there are additional guidelines you must meet to qualify for a new mortgage without waiting at least two years. If you are considering a short sale on your current house and purchasing a new home you must:
There is no right answer for every one, however, more lenders are starting to allow clients to purchase a new house after a short sale is completed with NO seasoning requirements. FHA announced this change in guidelines in December of 2009, however lenders still required applicants to wait 2-4 years after a short sale to be eligible for a new mortgage. A majority of lenders still require borrowers to wait, but there are a few lenders that will now let you obtain a new mortgage immediately.
However, there are additional guidelines you must meet to qualify for a new mortgage without waiting at least two years. If you are considering a short sale on your current house and purchasing a new home you must:
- Have no delinquent mortgage payments in the last 12 months and your mortgage must be current at time of closing.
- You can't have any delinquent payments on any installment debts in the last 12 months.
- You can not complete a short sale just to take advantage of the market. You need to be able to show that moving is necessary (increase or decrease in family size, moving to a different geographic area)
Tuesday, April 27, 2010
Why Locking is Better than Floating?
Once you lock your interest rate you are guaranteed that rate as long as you close with in the lock period. However, if rates fall you can not take advantage of lower rates. So should you lock or float?
There is an easy way to determine if you should lock your mortgage interest rate. There are only three options that can happen when locking an interest rate. Rates can go up, rates can go down, or rates can stay.
If you lock your interest rate and rates increase or stay the same you win. The only situtation you would lose is if rates decrease during your lock period. However, if you float and rates increase you lose, if rates remain the same you took a risk for nothing.
Lock your rate as soon as you can, UNLESS you know mortgage rates are trending down. The odds are on your side.
There is an easy way to determine if you should lock your mortgage interest rate. There are only three options that can happen when locking an interest rate. Rates can go up, rates can go down, or rates can stay.
If you lock your interest rate and rates increase or stay the same you win. The only situtation you would lose is if rates decrease during your lock period. However, if you float and rates increase you lose, if rates remain the same you took a risk for nothing.
Lock your rate as soon as you can, UNLESS you know mortgage rates are trending down. The odds are on your side.
Thursday, March 11, 2010
Remodeling This Spring
If you are planning on remodeling or doing any improvements this spring you may be able to get tax credit from the Federal government. The government is providing a tax credit for qualifying energy efficient products. Visit http://www.nahb.org/generic.aspx?genericContentID=113316 for specific details on the tax credits.
Also, for all Colorado home owners, Colorado will begin their appliance rebate program for energy efficient appliances later this month. We will let you know when the details of the program are released.
Also, for all Colorado home owners, Colorado will begin their appliance rebate program for energy efficient appliances later this month. We will let you know when the details of the program are released.
Friday, February 26, 2010
How Guidelines Changes Affect You
There has been so many changes in the mortgage industry nationally and in Colorado over the last few months it's tough to keep track. Our business has been constantly changing for the last 3 years, but over the last few months we have seen big changes that will affect you trying to obtain a loan. Below I have listed the big changes and how they will affect you.
Qualifying debt-income ratio has been lowered by most companies to 45% from 50%. The tougher guidelines decrease your purchase ability. If you household income is $4,000/month your purchase power has been decreased by over $30,000.
When FHA increases their fees this spring (upfront and monthly mortgage insurance) you will not only be paying more you will also be buying less.
CHAC in Colorado has recently changed their guidelines AGAIN, but this time it's to the home buyer's benefit. CHAC will once again provide down payment assistance to most home owners in Colorado. They do not lend in all cities and counties so for more information please contact us.
The new GFE which was instituted at the beginning of this year, doesn't do much but create a new headache and more paperwork. If you not seen this form you will get a good laugh once you receive it.
It's important that you understand how much the process and guidelines have changed before you begin the process of refinancing or purchasing a new home. Please call with any questions or advice. Or you can visit our website www.colomortgages.com
Qualifying debt-income ratio has been lowered by most companies to 45% from 50%. The tougher guidelines decrease your purchase ability. If you household income is $4,000/month your purchase power has been decreased by over $30,000.
When FHA increases their fees this spring (upfront and monthly mortgage insurance) you will not only be paying more you will also be buying less.
CHAC in Colorado has recently changed their guidelines AGAIN, but this time it's to the home buyer's benefit. CHAC will once again provide down payment assistance to most home owners in Colorado. They do not lend in all cities and counties so for more information please contact us.
The new GFE which was instituted at the beginning of this year, doesn't do much but create a new headache and more paperwork. If you not seen this form you will get a good laugh once you receive it.
It's important that you understand how much the process and guidelines have changed before you begin the process of refinancing or purchasing a new home. Please call with any questions or advice. Or you can visit our website www.colomortgages.com
Wednesday, February 17, 2010
There is Not Much Time Left
No I'm not talking about the tax credit. While the home buyer tax credit has received the most attention, the government's mortgage backed security (MBS) program has done more for the real estate market and may have a bigger impact when it's over.
The federal government allocated $1.25 TRILLION to purchase MBS to keep mortgage backed rates. In fact, they have become the ONLY player in the MBS market. The MBS purchase program is set to expire at the end of March. Once the government leaves we will see rates increase, the question is how much? Some experts believe we will see an increase of at least 1% immediately and possibly 2%-3% higher by the end of the year.
What does this mean in dollars? If you have a $200,000 loan currently you could receive an interest rate of 5% which would give you a payment of $1,073. If rates increase to 6% your payment will increase to $1,199. The difference of $125/month or $1,500/month or $45,000 over the life of the loan.
If you thought of refinancing, have a rate above 6%, have an adjustable rate, or purchasing a new home, do it now. Go to www.colomortgages.com and apply online for free.
The federal government allocated $1.25 TRILLION to purchase MBS to keep mortgage backed rates. In fact, they have become the ONLY player in the MBS market. The MBS purchase program is set to expire at the end of March. Once the government leaves we will see rates increase, the question is how much? Some experts believe we will see an increase of at least 1% immediately and possibly 2%-3% higher by the end of the year.
What does this mean in dollars? If you have a $200,000 loan currently you could receive an interest rate of 5% which would give you a payment of $1,073. If rates increase to 6% your payment will increase to $1,199. The difference of $125/month or $1,500/month or $45,000 over the life of the loan.
If you thought of refinancing, have a rate above 6%, have an adjustable rate, or purchasing a new home, do it now. Go to www.colomortgages.com and apply online for free.
Subscribe to:
Posts (Atom)
