www.TheMortgageMark.com

Who Needs Super Bowl Tix When You’ve Got a Man Cave?

2012-01-31T10:41:00.000-08:00

Who Needs Super Bowl Tix When You’ve Got a Man Cave?

January 31, 2012

It may sound like a football fan’s dream to attend a Super Bowl game live and in person. But really? Indianapolis? In February?
Unless you are a rabid fan of the New York Giants or the New England Patriots — the conference champs who will square off in Super Bowl XLVI on Sunday, Feb. 5 at the Lucas Oil Stadium — there really are better places to watch the NFL title game.
Like, a tricked-out, beer-tapped man cave!
Homes with “man caves” — or rooms with giant TVs, sports memorabilia, wet bars, and comfy couches — have grown in popularity over the years and have become the go-to place on big game days. Or, dare we say big movie nights?
Just in time for the big game, we found some homes for sale with man caves that offer the ultimate place to watch on Super Bowl Sunday. So, sit back, pop a cold one and pass the chips and dip while we tour a few man cave beauties we found.

9124 Eagle Point Loop Rd SW, Lakewood, WA 98498 (above)
For Sale: $1,295,000
Cars, kitchen, couches, and TVs – what more could a guy ask for? “Designed for a car enthusiast,” this 7,800-sq ft home sits on a gorgeous, waterfront parcel of Lakewood real estate with 3 bedrooms, 3.5 bathrooms, 2 dining rooms, library, hobby room, and a 1,000-sq ft entertaining deck. The only space needed this weekend, however, is the “man cave,” which is equipped with a full kitchen, car elevator, bathroom, workshop, and adjacent billiards room.

1445 W Grande Cir # 7, Washington, UT 84780 (above)
For Sale: $6,995,000
Gentlemen, start your drooling. Located in Washington, UT, this 24,500-sq ft home sports the ultimate man cave amenity: Its very own sports pub. Four ceiling-mounted TVs offer a 360-degree view of the game, and the hardwood floors, full bar, bar tables, and a pool table complete the pub ambiance. As an added bonus, there’s also a two-lane bowling alley, swimming pool, gym, theater, spa, and arcade room for alternative means of entertainment during half-time. This resort-like estate is currently listed on the Washington real estate market for $6,995,000.

15 Cape Harbour Pl, Spring, TX 77380 (above)
For Sale: $2,999,000
Talk about an architectural tongue-twister: Here’s a “French colonial constructed of vintage old Chicago brick with an English Pub-inspired man cave in Texas.” That’s a mouthful, but believe it or not, this home really does exist and is listed on The Woodlands real estate market with a recently reduced asking price of $2,999,000. The 5-bedroom, 7-bathroom home is Super Bowl-ready with a “one-of-a-kind man room” that includes a poker table, full bar, kitchen, pool table, dart board and more.

3317 Dartmouth Ave, Dallas, TX 75205 (above)
For Sale: $3,695,000
With its marble columns, wrought-iron chandelier, and painted ceiling, the man cave in this ornate Dallas estate takes you back to the Renaissance. Populated with a mounted, flat-screen TV, dart board, pool table and arcade games, however, makes it an elegant and appropriate destination for hosting Super Bowl festivities. Recently taking a $300,000 price cut, this 4-bedroom, 6-bathroom home is currently listed on the Highland Park real estate market for $3,695,000.

3675 Decoursey Bridge Rd, Cambridge, MD (above)
For Sale: $30,000,000
Noted as “one of the most significant hunting and equestrian estates” — not only on the Cambridge real estate market but in the entire United States — this property called Tudor Farms is sprawling: 6,250 acres and an 11-bedroom, 10.5-bathroom lodge-style home. Super Bowl Sunday festivities wouldn’t be lacking for a proper space here, either. Among the 14,000 square feet of living space is a cabin-like man cave with log columns, corner-mounted TV, pool table, shuffle board and bar

1255 Pacific Ave, Laguna Beach, CA 92651 (above)
For Sale: $7,995,000
Outfitted with white floors, ceilings and walls, there’s no place for messy tailgate appetizers at this gleaming property. A contemporary piece of Laguna Beach real estate, this 9,500-sq ft luxury home includes a sharp entertainment lounge with wet bar and media area for a more sophisticated Super Bowl get-together. Additional amenities include a wine cellar with tasting area, professional-grade gym, sauna, elevator, and outdoor entertaining area with a 74-foot lap pool, spa, and a rooftop deck.

151 Haggetts Pond Rd, Andover, MA 01810 (above)
For Sale: $6,500,000
If a mid-game dip is more your style, then a home with poolside TVs and full bar may be your best Super Bowl bet. Currently listed on the Andover real estate market for $6,500,000, this 9-bedroom, 9.5-bathroom home features an indoor pool with slide conveniently situated next to a bar with two TVs. The massive 20,000-square-foot home also includes a full basketball court, theater, arcade, exercise room, custom locker rooms, billiard room, and bowling alley.

Contact The Mortgage Mark with any Mortgage or Real Estate Questions!

www.themortgagemark.com

mwilkins@capitalfmc.com

5 Ways to Improve Your Credit Score

2012-01-18T12:38:00.000-08:00

5 Ways to Improve Your Credit Score

In today’s world, your credit score can have a significant effect on the financial aspects of your life. Your credit history determines loan and credit card interest rates, can raise your insurance premiums, and can even be a determining factor for getting a job.
Therefore, it’s very important to take steps to achieve and maintain a healthy credit score, and to check up on it frequently to ensure that it is accurate.

1. Pay Your Bills on Time

Your bill payment history accounts for roughly 35% of your credit score, and includes payment of credit cards, auto loans, mortgages, and utility bills. Recent late payments in your credit history have the greatest impact on your score, so if you’ve missed a payment before, avoid repeating this costly mistake!
If you want to boost your credit score, do whatever it takes to pay your bills in a timely manner every month. Use online reminders to help you remember to pay your bills, and inquire at your bank or check with your credit card company to see if they offer email reminders about due payments.
Many companies also allow customers to change the due dates for monthly bills, allowing you to streamline all of your bill payments into one or two occurrences per month.

2. Review Your Credit Report on a Timely Basis

Inaccurate or outdated information can appear on your credit report at any time, and this can significantly hurt your credit score. Identify and correct errors on your credit report quickly using the following steps:

Request a Free Copy of Your Credit Report. You can order your free credit report online from AnnualCreditReport.com. This is the only website that offers free credit reports, and provides access to reports from each of the three major credit reporting agencies. Once you sign up on the site, you can stagger when you review each of your three credit reports, reviewing one report every four months or so. You can also receive a free credit report if you are denied credit.
Review Your Credit Report. Once you obtain a copy of your credit report, review your contact information to make sure it is correct. Look for inaccurate information, outstanding balances, and late payments. If you have an open account with the company that reported the late payment, you can call them and ask that they remove it from your credit report. You may also notice a number of inquiries on your credit report, which often merely reflect credit card companies’ efforts to market their products to you. If any inquiries seem unusual, research to find out why they are being made on your account.
Check Carefully for Bankruptcies and Charge-Offs. Review the details for any bankruptcies and charge-offs on your credit report to ensure their accuracy.
File a Dispute. If you find errors or incorrect information on your credit report, file a claim to dispute and fix the errors with the reporting agency.

3. Never Close Old Lines of Credit

Many people believe that consumers should close old or unused lines of credit to improve credit scores. Actually, it may be more advisable to keep these lines of credit open.
A large portion of your credit score (approximately 30%) is determined by the amount of available credit you are using. If you have a lot of available credit, but only use a small portion of it, you can improve your credit score.
If you have a few credit cards that you no longer use, don’t let them languish – instead, use them occasionally for a few small purchases and pay them off in full each month. If you don’t use the cards, the issuers may reduce your credit lines or close your accounts. Closing a credit card hurts your credit score.

4. Open New Credit Judiciously

Based on the previous point, you might think that opening multiple new lines of credit will improve your credit score. This isn’t true, however, as opening several new lines of credit in a short period of time will negatively affect your score.
New credit accounts for about 10% of your score, and credit reporting agencies constantly monitor your activity, so open new lines of credit judiciously. If you find good deals on cash back credit cards or credit card sign-up bonuses, tread lightly.

5. Carefully Mix Credit Lines

The mix of credit lines accounts for about 10% of your credit score. If you have a mix of credit cards, loans, and other types of credit, you can positively impact your score. Walk this line carefully so that you do not overextend yourself, however.

Final Thoughts

In addition to paying your bills on time and maintaining lines of credit, other factors play a role in determining your score. For instance, the length of time you have had credit also accounts for about 15% of your credit score.
Over time, as you build and establish your credit, your score will improve. With careful, regularly scheduled awareness and monitoring, you can improve your score and enjoy all the benefits that come with a solid credit history.
What are some of the other strategies you’ve used to raise your credit score?

Contact The Mortgage Mark with any questions!

www.themortgagemark.com

mwilkins@capitalfmc.com

FHA Mortgage Insurance Premiums Rising Again

2012-01-05T09:27:00.000-08:00

Last Chance To Beat The FHA PMI Increase

Today's article is titled "Act Today And Beat The Mortgage Fee Increase". It's about the December 2011 Payroll Tax Extension program that passed into law. The government voted to finance the tax break's $33 billion price tag via fees collected on new mortgages. If your next mortgage is either conventional or FHA, therefore, be prepared for new, mandatory loan fees.
For Fannie Mae and Freddie Mac conventional loans, the expected fee hike is 0.125% to your mortgage rate. For FHA borrowers, it's a 10 basis point increase to your annual mortgage insurance premium.
This marks the 5th increase to FHA mortgage insurance premiums in as many years. Because of the changes, it's harder for FHA-insured homeowners to meet the FHA Streamline Refinance program's "5% Savings Rule". Fewer FHA-insured homeowners will qualify for the FHA Streamline Refinance program going forward.
As explained in the article :

"As soon as the FHA announces its increase, thousands of FHA households will be rendered ineligible for the FHA Streamline Refinance. Each time FHA mortgage insurance premiums rise, it gets harder for FHA-insured homeowners to meet the 5 percent savings requirement."

The new fees are expected to be in place very, very soon.
Click here for a rate quote.

Beat The Payroll Tax Fee. Apply Today Instead.

Mortgage rates are low. We all know that. But low rates don't matter if you have to pay an arm-and-a-leg to get them. Each new loan fee; each new price change; each new adjuster -- it all adds up, costing you money. Costs can be so high that low rates no longer matter.
Don't let that happen to you. If your loan is locked and in-process before the Payroll Tax Extension fees go live, you'll be exempted from the fees forever. The trick is to apply before the fees are changed.
Unfortunately, we don't have an exact date on it. Your safest bet, therefore, is to get started with a rate quote now.

Contact The Mortgage Mark with any questions!!

www.themortgagemark.com

mwilkins@capitalfmc.com

5 Things to Do When You First Move In

2011-12-07T09:56:00.000-08:00

You’ve signed the paperwork. You’ve picked up your new set of keys and you now have a new home. As you unpack the boxes, and take it all in as the new homeowner, there are a few critical things you should take care of.

1. Change locks
Unfortunately, you can’t assume the keys you’re holding are the only keys to your home that could exist out there. Play it safe and have all the locks changed as soon as you can.

2. Re-program garage door opener
Again, it’s better to be safe than sorry when it comes to the security of your new home. Most garage door remotes have a reset button that you can hold down to reprogram the opener. If you want more concise instructions, note the make and model of the opener and contact the company to walk you through the steps.

3. Replace furnace filter
Most manufacturers recommend that a furnace filter be changed once a month during the heating season to ensure the most efficient performance. While there are higher-quality filters that may not require monthly replacement, it’s still a good idea to check the filter monthly and, of course, replace it when you move into a new place.

4. Install new batteries in smoke alarm and carbon dioxide detector
You have no way of knowing when the batteries were last changed and if the home has been unoccupied, it’s probably been awhile. Test the alarm and detector and put new batteries in each. This investment of time and a few dollars is well worth it, given the stakes.

5. Replace toilet seat covers
We probably don’t need to go into specific details, but most people insist on swapping out toilet seats.

Did we miss anything else on the move-in checklist? Tell us!

Contact The Mortgage Mark with any questions!!! www.themortgagemark.com

New Home Affordable 125% Refinance Program

2011-10-25T12:44:00.000-07:00

New Home Affordable 125% Refinance Program

You have probably read that President Obama announced changes to the Making Home Affordable Refinance Program whereby a person can refinance a first mortgage that is upside-down. The big caveat being that the mortgage needed to be owned by Fannie Mae or Freddie Mac with the loan originated prior to June of 2009.
The changes announced yesterday extend the program to December 31, 2013, and will allow a refinance of a first mortgage no matter how far upside down the home is. The basics that were announced are below. No lenders are offering the program yet although major lenders are working on it’s release.
The requirements as they have been released to date are as follows:

1st mortgage owned by Fannie Mae or Freddie Mac
NO late mortgage payments within the previous 6 months
NO MORE THAN 1 late mortgage payment within the past 12 months
2nd mortgages must agree to go back in 2nd position

Lenders are expected to receive funding details by November 15. Availability of the loan is expected after December 31, 2011.

Contact The Mortgage Mark with any questions!!

www.themortgagemark.com mwilkins@capitalfmc.com

8 Ways To Accidentally “Un-Approve” Your Mortgage

2011-09-20T11:15:00.000-07:00

8 Ways To Accidentally “Un-Approve” Your Mortgage

For all the talk of how tough it is to be "mortgage approved", the basics of mortgages haven't changed. Mortgage approvals are still the 3-legged stool of income, equity, and credit.
Sometimes, though, it's not getting approved that's hard -- it's staying approved.
You have to watch out for landmines.

When Things Go Wrong

Mortgage approvals take time. In a typical home loan market, it's about 3 weeks from start-to-finish.
Approvals can take longer, however, depending on market conditions. For example, if rates are low and there's a refi boom on-going, a refinance can take 6 weeks to close. Banks don't have capacity to do work much faster.
Or, if you're buying a home and it's a short sale or foreclosure, expect delays there, too. With REO, it can take up to 6 months to get to the closing table.
Click here for a rate quote.
Thing is, during that "extra time" -- 3 weeks, 3 months or longer -- a lot can go wrong, and when things go wrong, your loan goes bad. For example, if lose your job, become ill, or see your home damaged by storms, you may lose your mortgage approval -- even if you were previously cleared-to-close.
Unfortunately, these are all events that are beyond your control. You can't control sickness any more than you can control Mother Nature. But you can control yourself during those extra few weeks.
Good behavior matters in mortgage.

Bad Mortgage Behavior, Defined

Keeping "good behavior" in mind, here are 8 things you should absolutely not do between your date of application and your date of funding. I've been doing this long enough that I can say with certainty: Ignore these rules at your own peril.

Don't buy a new car or trade-up to a bigger lease
Don't quit your job to change industries or start a new company
Don't switch from a salaried job to a heavily-commissioned job
Don't transfer large sums of money between bank accounts
Don't forget to pay your bills -- even the ones in dispute
Don't open new credit cards -- even if you're getting 20% off
Don't accept a cash gift without filing the proper "gift" paperwork
Don't make random, undocumented deposits into your bank account

And that's it.
Now, you may find it 100% impractical to have follow these rules to the letter. I know that.
For example, if your car lease is expiring, you have to do what you have to do. Renew the lease. But before doing it, you should check with your loan officer to see if renting a car in the short-term, instead, would be a more mortgage-friendly solution instead.
The same goes for accepting cash gifts from parents. There's a right way and a wrong way to accept a cash gift from family and if you do it the "wrong way", your gift may be prohibited from use as part of your downpayment funds.
There are a bevy of "gotchas" in Mortgageland and you can't expect to know them all. These 8 rules, however, are a good start.

Get Low, Long-Term, Locked Mortgage Rates

Mortgage refinances take time and the best thing while your loan is in process is to keep the status quo. You can't control nature, but you can control you. Be smart with your finances and don't let your mortgage get un-approved.
Click here for a rate quote.

Contact The Mortgage Mark with any questions!!

www.themortgagemark.com

mark@themortgagemark.com

Get a Property Inspection Before You List

2011-09-13T11:41:00.000-07:00

Get a Property Inspection Before You List

Many real estate agents and home sellers focus on staging, cleaning, and painting a property so it will ‘shine’ for potential buyers. They spend a good deal of time looking at comps and pricing it attractively. All that’s essential, of course. But they often don’t bother to do something else that’s really important: get a pre-sales property inspection.
Property inspections, once upon a time, were just part of a checklist. Buyers, eager to get into the market, would sometimes turn a blind eye to the issues that came up during an inspection. Or if a buyer balked at issues uncovered by an inspection, the seller, knowing there were others waiting in the wings, simply moved on to the next buyer. Sellers were less likely to offer credits or do any improvements based on the buyer’s findings during the general property inspections.

How things have changed.

Today, there’s a lot more inventory for buyers to choose from. As a seller in the current market, you need to overcome as many possible objections buyers may have and do what it takes to get your property ready. I believe a pre-sales general property inspection (about $250 to $500) from a reputable, reliable inspector should go hand in hand with staging, cleaning and property preparation.

Three reasons to get a pre-sales property inspection:

1. It will help you properly price and market your property.
A pre-sales inspection will help you address glaring home improvement issues so you can properly price and market your property. If you know the house needs a new roof, either fix it before going on the market or factor that into the list price. It will save you headaches when you have a buyer in escrow.

2. It makes buyers more confident in your property.
Having buyers see the inspector’s report up front will give them the added confidence to make an offer on your property. You’ll weed out the buyers who may not be into small fixes, too.
Too often, the scenario I see play out is this: The seller has no inspections or reports. The buyer makes an offer, assuming that the property is in good condition. The seller accepts the offer, they go into escrow, the earnest money is deposited, and then the inspections and loan processes begin.
And then, the buyer’s inspector discovers a variety of small issues: the electrical panel needs updating, some plumbing needs to be changed to copper, and the HVAC system is near the end of its life. The buyer may not be up for home improvements and, after having spent a week or two in escrow, the seller is back on the market. Their property now seems flawed in the eyes of buyers and the brokerage community. Or the buyer may negotiate a credit of up to $30,000 to accommodate for these fixes — money the seller probably hadn’t intended on forfeiting. If the seller had done a property inspection before going to market, these issues would have been obvious to the buyer prior to their offer, and a lot of wasted time and energy could have been avoided.

3. You’ll have the upper hand in negotiations and save time.
The idea of documenting your property’s flaws up front may seem counter-intuitive to a seller. Ultimately, though, it can give you the upper hand in negotiations. The possibility that a serious buyer won’t eventually learn about these flaws is very low. Why not take the high road? Red-flag the issues from the get-go and negotiate from a place of strength.
I can’t stress this point enough: Having these inspections done up front can save you weeks, if not months, in the sales cycle. Plus, that buyer who asks for a $30,000 credit after they have an inspection done may have been OK paying your list price, or closer to it, if they’d known about the issues when they made their offer. So you would have potentially saved yourself money in addition to time.

Contact The Mortgage Mark with any questions!

www.themortgagemark.com
mwilkins@capitalfmc.com

What’s the First Step in the Buying Process?

2011-08-29T08:55:00.000-07:00

What’s the First Step in the Buying Process?

While you may have been home shopping for a while— either perusing neighborhoods, looking at real estate web sites or perhaps using a real estate app— before you jump fully into the home buying process there are two important things to do before you choose your agent:

First— Speak to a Lender
Even before you choose your real estate agent, you should touch base with a lender and discuss your mortgage options. You want to ensure that your payments are affordable and that you will feel comfortable with the home-buying process.
Additionally, most agents, if not all, want their clients to speak to a lender to verify the price range they can afford. This makes it so agents can focus their time showing their clients homes that actually fit within their price range.

Get pre-approved
When you speak to a lender, ask to get pre-approved. Getting pre-approved is important so you can demonstrate to real estate agents and sellers that you are a credible buyer. It means you are:

Credit-worthy
Closer to locking a mortgage rate
Able to act fast when you find the home you want to buy!

And when you do find a home, you’ll often need a pre-approval letter from your lender to submit with your offer so it’s a good idea to get pre-approved in advance so that you’re prepared with your letter when you decide to submit an offer.
Overall, the more you learn from your lender early on – about what you can afford, and what to expect from mortgage application process, the less anxiety you will feel regarding the overall home-buying process.

Then Choose an Agent
Once you’ve spoken with a lender, learned about your financing options, and have been pre-approved, you’ll be more prepared to shop for homes with you agent. A real estate agent not only will be able to provide information about a specific home that interests you, but can also arrange home tours as necessary and assist in the final negotiation process.
Doing these three things in order will make the home-buying process easier for you and your agent. Once you have these things checked off, then you can enjoy searching for your dream home.

Contact The Mortgage Mark with any questions!

www.themortgagemark.com

mark@themortgagemark.com

What’s In Your Mortgage Payment?

2011-08-25T11:14:00.000-07:00

What’s In Your Mortgage Payment?

If you have never owned a home and had a mortgage, it can be a little confusing to see what makes up your monthly mortgage payment. Every lender has their own methods when it comes to collecting your monthly mortgage payment, but generally speaking the breakdown of a mortgage payment is pretty standard.
The first component of your mortgage payment is often referred to as P/I or Principal and Interest. The principal and interest component is simple to calculate and even the simplest of mortgage calculators will let you input the loan amount, term of the loan and interest rate and calculate the P/I payment over the term of the loan.
Generally speaking with most mortgage loans, the first payments you make will be mostly interest and the last few payments you make will be mostly principal.
The second component of your mortgage payment is often referred to as T or Taxes. Your property taxes are assessed by the county you live in and are typically collected as part of your mortgage payment by your lender who then pays your taxes on your behalf when they are due (typically twice each year). In some areas of the country, property taxes are high and in some they are low — but generally speaking your property taxes are paid into an escrow account at your lender and held there until paid.
The third component of your mortgage payment is I or Insurance. Insurance refers to your homeowners insurance. Like your taxes, it is common for your lender to have an escrow account set up for you for your insurance premiums. You pay 1/12th of the annual premium each month as part of your mortgage payment and your lender then pays your insurance company once each year.
Depending on how much money you put down as a down payment and what type of loan program you have, you may or may not have M/I or Mortgage Insurance. Mortgage insurance is different than Insurance. Mortgage insurance is paid by the borrower to the lender and the lender pays that to private MI companies who agree to pay the lender in the event the borrower defaults.

Mortgage Payment Breakdown: A Simple Example

Here is a simple example mortgage payment breakdown for a $200,000 loan at a 5% interest rate with a $1,200 annual property tax bill and a $1,200 annual insurance policy premium to insure the home with no mortgage insurance.
Principal / Interest = $1,074
Taxes = $100
Insurance = $100
Total PITI Payment = $1,274
What makes up your monthly mortgage payment?
P. I. T. I. and sometimes MI.

Contact The Mortgage Mark with any questions!

www.themortgagemark.com

mark@themortgagemark.com

What to do about Google Plus…

2011-08-09T10:31:00.000-07:00

What to do about Google Plus…

No doubt you’ve heard about the new kid on the block. It’s Google Plus and everyone is buzzing about it. Are you worried that you need to catch the G+ wave? Fear not! Here’s what you need to know about G+, how to get started, what to look out for and a few other tips and hints.
Let’s start with what G+ is, and some of the more important features. You can click on the title of each topic for a quick video from Google.

Google Plus Overview:

Hey, it’s a social network. A totally new social network. It’s kind of like Twitter, kind of like Facebook, and then again it’s completely different from both. In the end, it’s a place to share with others, meet new people, and enhance the relationships you presently have in an online environment.

Circles:

In Facebook you might have organized your friends into Lists. That allows you to better adjust the privacy settings and control who sees what you post and filter what you want to see. Circles operate pretty much the same way in G+. I can create circles, add people to various circles and then distribute content to that circle of friends. I can also view the content from a particular circle of friends.
Circles are all drag and drop. Your friends appear on the top and you can drag them down into any circle that might be applicable. Naturally, some people might be in more than one circle. That’s just fine with G+! You start with a simple set of circles but can add, modify or rename any of them to fit your needs.

Hangouts:

This might be one of the better features of G+. Hangouts allow people to video chat in a group setting. The video streams nicely no matter how many people are in on the chat. All you need is a webcam (most laptops now come with cameras built in) and with the click of a button you’re video chatting! When you start a Hangout, it could be open to the Public or you can limit who sees that hangout by simply inviting just a circle.

Settings:

This will be a key part for many people. The settings tab allows you to better control the notifications you receive either by email or sms (text). Want to know when someone comments on your post or adds you to a circle? Just check the box. Conversely, if your inbox is easily overloaded – you can uncheck away!
Seems pretty simple right? Now that you have a basic understanding of what G+ is, let’s dive in!
It all starts with your Google Profile. These have been around for a while and you may have forgotten you even have one. Start by going to https://www.google.com/accounts/Login?service=profiles and entering your Google account username and password. This is probably going to be the Gmail address you use. Do you have a Google Profile? Good! Now if you have a Google + Invite you can start playing with G+ at https://plus.google.com/. Don’t have an invite? Just ask one of your friends, or ask me (Mike912Mueller@gmail.com). I’d be happy to invite you!

Complete Your Profile:

On G+, your profile is now the About Tab. Step One of any social network you join should always be to complete your profile. That starts with a picture of you. Additionally, Google allows you to also post 5 different pictures along the top. Below the five pictures you’ll see “Posts, About, Photos, Videos, +1’s and Buzz”. We can show or hide some of these.
The main section is called “Introduction” and can be used for a bio. You can include anchor text and hyperlinks. On the right sidebar you can show the icons to your other social networks. The left sidebar shows the people you’ve placed into circles and the people who have placed you into circles.
Up on the top right of your profile you’ll see a blue button to “edit profile”. One click and you can make any change you like. As you edit sections you’ll also see the ability to show that section to anyone (Public) or narrow it down to your individual circles. The choice for each section is up to you! Don’t like the idea of showing the world who has added you to a circle or who you have added? You can control that too.

Circles:

Now that you have a complete profile, let’s start adding people to circles. https://plus.google.com/circles/find will get you started finding the people you know. You can search for people by name or even upload an address book and search en mass that way.
Your friends will appear in the upper section and your circles below. To add someone to a circle just drag them to it. People in full color are on G+ and those that have silhouettes are not (yet). You can rename any circle you like, or create new ones as you see fit.

Circle Hints

While a person might get a notification that you have added them to a circle they do not know what circle you have added the to. You can have a circle called “Dirt Bags” and nobody would ever know.
If you hover over a friend you’ll be able to see what circles you’ve added them to.
You can also click multiple friends and drag the selected group to a circle.
Clicking on a circle will give you a pop up showing you the members of that circle.
Anyone can add you to their circles, you don’t have to reciprocate and you can control what they can see.
The person who has been added to the most circles is Mark Zuckerberg – yet he’s not posted a single thing!

The Home Stream:

Up at the top you’ll see 4 buttons. Home, Photos, Profile and Circles.

We’ve covered your Profile and Circles, let’s go to your Home Stream next. Click the left button and you’ll see your home stream. The default setting is set for “Public” and it can get pretty busy. On the left sidebar you’ll see your circles. By clicking on a particular circle you’ll see only those posts that come from that stream. At the top is a box for your input. Where Facebook asks “What’s on your mind?” and Twitter asks, “What’s happening?” I found it funny that G+ emulated them by asking “Share what’s new…” in a very similar way.
Start writing something in the box and you’ll see you can share a photo, a video, even a link to a blog post (like this)! You’ll see a box below showing you who exactly you are sharing this post with. Once you’ve shared the post you can click on the time stamp and get just the permalink to that post. Here’s a sample post I made public: Click here
On the top right you’ll see a small drop down arrow. That allows you to edit, delete, disable comments or disable resharing. People can also +1 your post. That’s a good thing. That’s akin to a LIKE in Facebook.
Go leave a comment on someone’s post. It easy to do and you can always edit your comment later. That’s something you can’t do with Facebook or Twitter.
If you comment on a post and then don’t want to the notifications of everyone after you who posts, you can “mute” that post. This may come in handy if you happen to leave a comment on a post that goes viral.
Here’s another cool tidbit… in a post or comment you can mention a friend by typing a + followed by their name much in the same way you can @ in Facebook and Twitter. That will get their attention and is especially useful if you are sharing a post or comment and want to alert a particular friend.
Moral of the Story:
Google Plus is a new network. It’s a new tool to add to your toolbox. It’s not the Facebook Killer or the network that Twitter should have been. It has it’s good points and it’s bad. It’s a work in progress and changes daily. Personally, I think it’s still missing 4 very big things, “Search, Sort, Sift and Filter. 4 things I want out of Google Plus”

Should you be on Google Plus?

Absolutely! But do so when you have free time. Complete your profile first and then start poking around.

Contact The Mortgage Mark with any questions!! www.themortgagemark.com mwilkins@capitalfmc.com

Tackling Tree Issues With Your Neighbors

2011-08-01T10:14:00.000-07:00

Tackling Tree Issues With Your Neighbors

When you buy a home, you’re not only purchasing the actual house, but the property and everything that comes along with it. Often, if you’re lucky, this includes a few trees that can add privacy, work as a noise barrier and ultimately increase your home’s value. However, a tree can also mean possible property damage and tussles with the neighbors.

Talk it Out

One of the biggest neighbor disputes involves property lines and trees that cross them. Although you as a homeowner have the right to trim anything on your property, or anything that crosses over onto your property, doing so could have disastrous results.
“Property lines are a gray area,” explains Jim Burgess of Snohomish Arborists. He notes that the best option is to talk to your neighbor first before you take matters into your own hands.
If you have a legitimate concern over a tree on your property, or on your neighbor’s property next door, you have every right to address it — even if your neighbor doesn’t agree with you. The best way to tackle the issue without litigation is to bring in an expert.
An arborist, or tree service consultant, can work with you and your neighbor as a third party to find the best way to deal with a tree. Burgess often says that two consultants will be brought in — one for one neighbor and one for the other — so the most impartial decision can be made.
While the consulting session can run upwards of $100 an hour, Burgess says it’s worth it. You don’t know if the tree is dead, damaged or needs to have specific care given to it. Not only can a consultant help you work with your neighbor, they’ll let you know if the tree needs to be removed.

Don’t Do It Yourself

Pruning may seem like a simple task, but when it’s a 100-year old maple or enormous willow,
you could end up killing the tree and invoking the risk damaging your home or your neighbor’s.
“If you thin a tree improperly, a tree can react and produce large, more hazardous limbs that can go through roofs,” said Burgess. “Some trees, if you cut back too much, you’ll expose them to wounding, disease and then the tree dies.”
Bottom line, says Burgess, if you have a tree of significant value or size, you should bring a certified arborist in.

Avoid a Lawsuit

As mentioned before, you have the right to trim the tree branches hanging over into your yard, but be aware if your work causes damage, you’ll end up as the one responsible.

“When trees aren’t taken care of properly, they can drop the price of the property,” said Burgess. “Trees have very high value and if something is damaged it will be a really large sum in terms of settlement.”
The conclusion, said Burgess, is to negotiate before you litigate. Talk to your neighbor and call in a consultant if need be.
Looking for a consultant or arborist? The International Society of Arboriculture provides a list of certified tree services.

Contact The Mortgage Mark with any questions!

www.themortgagemark.com mwilkins@capitalfmc.com

Transfer Taxes when Buying a home

2011-07-26T11:08:00.000-07:00

DEVIATIONS FROM 1% LOCAL TRANSFER TAX

Amended 1/14/2011

The Realty Transfer Tax in Pennsylvania is generally 2% of the sales prices; 1% to the state and 1% to

local government. Some local governments vary their portion. The following is a list of localities that

impose something other than 1%. These figures represent the local portion only; the 1% state portion must

be added for the total amount due.

ALLEGHENY COUNTY
Bellevue Boro – 1½%

Bethel Park Municipality – 1½%

Greentree Boro – 1½%

Hampton Twp – 1½%

McCandless Twp – 1½%

McKeesport City – 2%

Monroeville Municipality – 1½%

Mt Lebanon Municipality – 1½%

Mt Oliver Boro – 2%

O’Hara Twp – 1½%

Penn Hill Municipality – 2%

Pine Twp – 1½%

Pittsburgh, City of / Pittsburgh School District – 3%

Pittsburgh, City of / Baldwin-Whitehall School District – 2½%

Upper St. Clair Twp – 1½%

West Deer Twp – 1½%

Whitehall Boro – 1¼%

BERKS COUNTY
Reading, City of – 4%

CENTRE COUNTY
Ferguson Twp – 1¾%

State College Boro – 1 ¾ %

Taylor Twp – ½%

CHESTER COUNTY
Coatesville, City of – 2%

Tredyffrin Twp – 1½%

CLINTON COUNTY
Colebrook Twp – ½%

East Keating Twp – ½%

DELAWARE COUNTY
Radnor Twp – 1½%

Upper Providence Twp – 2%

ERIE COUNTY
Edinboro Borough – 1½%

LACKAWANNA COUNTY

Scranton, City of – 3%

LUZERNE COUNTY
Kingston Boro – 1½%

Wilkes Barre, City of – 2½%

MERCER COUNTY
Farrell, City of – 2%

Hermitage, City of – 1½%

Sheakleyville Boro – 0%

PHILADELPHIA COUNTY

Philadelphia, City of – 3%

SOMERSET COUNTY

Wellersburg Boro – ½%

WASHINGTON COUNTY

Peters Township – 1½%

Contact The Mortgage Mark with Any Questions!!

www.themortgagemark.com

Four Energy Conservation Myths Costing You Money

2011-07-26T10:37:00.000-07:00

Trying to cut back on energy costs? Your “money-saving” tricks may actually be costing you more in long haul.

Myth: Programmable Thermostats Save You Money
Well, they do, but only if you program them to do so. Many people mistakenly believe that these computer-chip, electronic devices will automatically set themselves to operate in the most energy-efficient way. But they don’t. You have to program them so that they stop your ducted air conditioning coming on when it isn’t really needed – at night or when you’re at work or on holiday. So read the manufacturer’s instructions carefully and learn how to set your thermostat to suit your particular needs – lowering it by just 1°C can reduce your bill by up to 15 percent.

Myth: Fans Cool a Room
Fans do not actually cool the air in a room, they cool the people in it by creating a wind-chill effect on their skin. So there is no point leaving a fan on when you’re no longer in a room. Instead, treat it like a light and turn it off when you leave the room. Otherwise, you will just be wasting electricity and running up a large bill.

Myth: Computer Screensavers Save Energy
All a screensaver does is prolong the life of your monitor by displaying a moving image while you are not using your computer, as any fixed image left on would eventually “burn” itself into the screen, ruining it. Screensavers do nothing whatsoever to save electricity – in fact, they burn up quite a lot. If you want to save energy, without turning your computer off, check if it has a special energy-saving mode: go to your operating system’s control panel or preferences and explore the power-management options available.

Myth: Stand-By Costs Less Than Turning On and Off
This is certainly not true. Leaving a machine constantly in stand-by mode consumes a surprisingly large amount of electricity. If you want to save energy – and money – you should always turn your computer off at night or when you will be away from it for a long period of time. Remember also to switch off other computer hardware, such as scanners, printers and external hard drives and speakers at the mains. If they are powered via a plugged-in transformer, that will remain on even when the power button on the appliance has been switched off.

Contact The Mortgage Mark with any questions!

mwilkins@capitalfmc.com

www.themortgagemark.com

5 Questions to Ask Your Home's Inspector

2011-07-14T09:31:00.000-07:00

Most home buyers feel like they are bona fide real estate experts after all the studying up on loans and neighborhoods, online house hunting and open house visiting it takes just to get into contract on a home these days. But for all but the most handy of house hunters, getting into contract and starting the home inspection process only surfaces how little you actually know about the nuts and bolts and brick and mortar of the massive investment you’re about to make: a home!

So, you hire a home inspector, but it seems like they’re speaking an entirely different language - riddled with terms like “serviceable condition” and “conducive to deterioration” - about your dream home! Here are 5 questions you can use to decode your home inspector’s findings into knowledge you can use to make smart decisions as a homebuyer - and homeowner.

1. How bad is it - really? The best home inspectors are pretty even keeled, emotionally speaking. They’re not alarmists that blow little things up into big ones, nor do they try to play down the importance of things. They’re all about the facts. But sometimes, that straightforwardness makes it hard for you, the home’s buyer, to understand what’s a big deal and what isn’t so much - the information you need to know whether to move forward with the deal, whether to renegotiate and what to plan ahead for.

I’ve seen things categorized in home inspection reports under “Health and Safety Hazards” that cost less than $100 to fix, like replacing a faucet that has hot and cold reversed. And I’ve seen one-liners in inspection reports, like “extensive earth-to-wood contact” result, after further inspection, in foundation repair bids pricier than the whole cost of the home!

In many states, home inspectors are not legally able to provide you with a repair bid, but if you attend the inspection and simply ask them whether or not something they say needs fixing is a big deal, nine times out of ten they will verbally give you the information you need to understand the degree to which the issue is a serious problem (or not).

2. Who should I have fix that? I always ask this question of home inspectors, with dual motives. First, very often, the inspector’s response is - “What do you mean? You don’t need to pay someone to fix that. Go down to Home Depot, pick up a ___fill in the blank__, and here’s how you pop it in. Should cost you $15 - tops.” And that’s useful information to know - it eliminates the horror of a laundry list of repairs and maintenance items at the end of an inspection report to know that a number of them are really DIY-type maintenance items. Even buyers who are really uncomfortable doing these things themselves then feel empowered to either (a) watch a few YouTube vids that show them how it’s done, or (b) hire a handyperson to do these small fixes, knowing they shouldn’t be too terribly costly.

And even on the larger repairs, your home inspector might be able to give you a few referrals to the plumbers, electricians or roofers you’ll need to get bids from during your contingency period, which you may be able to use to negotiate with your home’s seller, and to get the work done after you own the place. Dropping the inspector’s name might get you an appointment booked with the urgency you need it in order to get your repair bids and estimates in hand before your contingency or objection period expires.

And same goes for any further inspections they recommend - if neither you nor your agent knows a specialist, as the general home inspector for a few referrals.

3. If this was your house, what would you fix, and when? Your home inspector’s job is to point out everything, within the scope of the inspection, that might need repair, replacement, maintenance or furthe inspection - or seems like it might be on it’s last leg. But they also tend to be experienced enough with homes to know that no home is perfect. Many times, I’ve asked this question about an item the inspector described as “at the end of its serviceable lifetime” and had them say, “I wouldn’t do a thing to it. Just know that it could break in the next 5 months, or in the next 5 years. And keep your home warranty in effect, because that should cover it when it does break.”

This question positions your home inspector to help you:

understand what does and doesn’t need to be repaired,
prioritize the work you plan to do to your home (and budget or negotiate with the seller accordingly),
get used to the constant maintenance that is part and parcel of homeownership, and
understand the importance of having a home warranty plan.

4. Can you point that out to me? Often, when you attend the home inspection, you’ll be multi-tasking, taking pictures of the interior, measuring for drapes or furniture, even meeting the neighbors, or fielding several inspectors at a time. Worst case scenario is to get home, open up the inspector’s report and have no clue whatsoever what he or she was referring to when they called out the wax ring that needs replacement or the temperature-pressure release valve that is improperly installed.

Your best bet is to, at the end of the inspection, while you’re all still in the property, just ask the inspector to take 10 or 15 minutes and walk you through the place, pointing out all the items they’ve noted need repair, maintenance or further inspection. When you get the report, then, you’ll know what and where the various items belong. (One more best practice is to choose an inspector who takes digital pictures and inserts them into their reports!)

5. Can you show me how to work that? Many home inspectors are delighted to show you how to operate various mechanical or other systems in your home, and will walk you through the steps of operating everything from your thermostat, to your water heater, to your stove and dishwasher - and especially the emergency shutoffs for your gas, water and electrical utilities. This one single item is such a time and stress saver it alone is worth the lost income of missing a day of work to attend your inspections.

Contact The Mortgage Mark with any questions!!

www.themortgagemark.com

mwilkins@capitalfmc.com

Paying Off A Mortgage Early? Six Things To Consider

2011-07-12T12:17:00.000-07:00

Paying Off A Mortgage Early? Six Things To Consider:

Does your employer match any retirement savings you save? If yes, are you maxing out the amount you can contribute? Employer-matched contributions to a retirement plan are often the wisest investment you can make.

Do you have any other debt other than your mortgage? If yes, then most likely it will make sense to try to pay that debt off before trying to pay off your mortgage early.

Do you have at least 24 months of living expenses in liquid assets? Many people suggest a lower number, but after talking with plenty of people who used to have 6-months savings three years ago, I have raised my suggested number from 6 months to 24 months of savings. Yes, I know that is conservative.

Do you currently owe more on your mortgage than your home is worth? If yes, then ask yourself the question of how much you really enjoy living in that particular house. Would you be willing to buy it again for more than it is worth now?

Does the amount of your mortgage bother you? Do you find yourself up late at night worrying about how you are ever going to get out of debt and pay off your mortgage? If yes, what value is peace of mind to you?

Do you think you could get a better return on your money if you invested it in other things? Paying off your mortgage early is really an investment decision. When you line up your various investment track records and future choices, how well does paying off your mortgage early stack up with your other options?

Summary — Is Paying Off Your Mortgage Early A Good Idea?
It depends. I have listened to the experts for years debate this topic and in the end it all comes down to a very personal decision that is not solely based on dollars and cents and returns on investment. At the end of the day, I have seen very smart people choose both sides: some to pay off a mortgage and some to continue to pay “normally.”
Paying off a mortgage early isn’t a matter of making a wise decision — it is most often a matter of personal preference.

No matter what the experts tell you.

Contact The Mortgage Mark with any questions!!!

www.themortgagemark.com mwilkins@capitalfmc.com

5 Surprising Credit Report Errors You Must Fix

2011-06-17T08:26:00.000-07:00

In a recent study, 19 percent of American consumers who reported finding an error in their credit reports opted not to dispute the error, even when they were offered $5 to file the dispute! Why not? Well, some said they thought the error was too minor to impact their score, while others said the dispute process seemed too difficult to tackle.

The fact is, when you’re trying to qualify for a home loan, some of the items on your credit report that can pose a threat to your home finance plans might surprise you. Here are 5 surprising credit report entries you absolutely must fix, especially when you are in the process of buying or refinancing a home.

1. Account balances you recently paid down or off. If you’ve just finished paying a bill down or off, you might not dispute the elevated balance that remains on your credit report because it’s not actually an error, per se. But the whole point of paying the balance down was to bring down your credit utilization ratio, which is a heavily weighted factor in your overall credit score.

Correcting the actual balances of your outstanding bills downward to account for your recent pay-down efforts poses such a large potential improvement impact for your credit score that it might even be worth paying your mortgage professional the $30 to $50 it will cost for them to initiate a Rapid Rescore, which can update your reports to reflect your slimmed-down balances in about 72 hours, compared with the 30 to 60 days you’d expect to wait to see results from a traditional dispute or update.

2. Incorrect former addresses. Of the 19 percent of consumers who spotted an error on their report in the study, nearly 40 percent of those errors were in what the credit bureaus call “header data," things like the consumer's previous street address. Many elected not to dispute these sorts of line items because the error doesn't seem like it would impact their credit score. While an inaccurate address might not have much to do with your score, it can still wave a red flag, signaling issues that can foul-up your mortgage application.

A misspelling in an otherwise correct street name should not cause you grave concern. But if the previous addresses listed are in the wrong city or state, or otherwise come out of nowhere, they might signal that someone has used your name and/or social security number to obtain credit at a different address. Credit card fraud and identity theft are difficult to unravel when you’re not seeking credit; they are much more complicated to resolve when the credit stakes are high and the underwriter as picky as they are in the course of applying for a mortgage.

Also, current and previous addresses that conflict with where you’ve told the lender you live(d) can raise suspicion that you might be buying a second or rental home, rather than the owner-occupied home you say you’re trying to buy; that can provoke a lender to demand that you ante up more down payment dough, make you jump through greater hoops to prove your true address or even stop you from qualifying for the loan altogether.

3. Bills that were never yours in the first place. As with completely bizarre former addresses, accounts listed on your credit report that you never opened in the first place can be a red flag that tips you to the fact that someone else might have stolen your identity and opened a credit card or account in your name. If you find one of these items on one credit bureau report, but it’s currently closed or has a zero balance, you might be tempted to let it slide, thinking it can’t move the needle on your credit score. In reality, though, if someone is using your identity to obtain credit and you fail to dispute that the bills belong to you, they might continue to use it, which can cause you real problems. Of course, if the bills weren’t paid on time or have been placed in collection, disputing the accounts’ presence on your credit report is a must.

If they were paid on time every time, though, the analysis might be different. Unfortunately, instituting a fraud-based credit freeze or fraud alert on your credit reports at the same time as you’re applying for a mortgage can complicate your own loan qualification process significantly. If you find yourself in this situation, carefully scrutinize the rest of your report and the credit reports you receive from the other bureaus to detect whether other fraudulent accounts exist, then consult with your mortgage professional on exactly when and how you should go about disputing the accounts which weren’t actually yours.

4. Limits listed as lower than they really are. As with closed accounts that were never yours in the first place, accounts that are listed on your credit report as having limits that are lower than they really are might seem like a battle not worth fighting. But the fact is that only two inputs go into the credit utilization ratio that comprises about 30 percent of your FICO score: how much credit you have available, and how much credit you have used. So, if you have account balances that show up on your credit reports as lower than they actually are (i.e., that you have less credit available to use), that inaccuracy can skew your credit score and screw up your mortgage qualifying efforts. Big time.

5. Derogatory items that should have aged off. Very few of us are perfect, and you might have worked hard to pay your bills on time in an effort to overcome a credit ding from back in the days. Although the impact a derogatory item has on your credit score wanes over time, it’s still your right (and your responsibility) to make sure negative items disappear from your credit report when they are supposed to – that’s 7 years for a late payment, 10 years for a bankruptcy. If you are still seeing credit dings on your report after more than the relevant time frame has elapsed, dispute them and claim the rehabbed credit (and score) you’ve since earned.

It’s not very common that credit report disputes cause dramatic changes in credit score, but again, many borrowers aren’t disputing these sorts of items they don’t realize could make a difference in their homebuying or refinancing prospect.

Beyond that, if you’re close to a credit tier cutoff, like 620-640 or 740-760, depending on your loan type, even a few points’ difference can be the difference in qualifying for a home or not, or paying a higher mortgage interest rate for the life of your loan. For these reasons, it behooves every potential borrower to be proactive in spotting and correcting these 5 must-dispute errors.

Contact The Mortgage Mark with any questions!!!

mark@themortgagemark.com

www.themortgagemark.com

The Mortgage Refi Boom Of 2011 Has Officially Begun

2011-06-16T10:26:00.000-07:00

Mortgage rates are dropping. There's an MBS winning streak going on.

Here Comes The Refi Boom Of 2011

We're on the precipice of something big. A wave of uncertainty about Greece and its debt, plus weaker-than-expected economic data at home, has dropped conforming 30-year fixed rate mortgage rates to levels not seen since December 2, 2010.
Click here to get a rate quote.
It's been 8 straight weeks that mortgage rates have dropped. 8 weeks. Not even last year's epic Refi Boom produced a winning streak of 8 weeks. This year's streak is historic.
The 30-year fixed rate mortgage now averages 4.49% nationally. It's down 42 basis points -- or 0.42% -- since early-April. For every $100,000 borrowed, that yields a monthly payment difference of $25.24.
Adjustable-rate mortgages have shed even more, giving back 50 basis points since the streak began.

Mortgage Rates Vary By Region

Relative to earlier this year, it's an excellent time refinance a home or buy a new one. Mortgage rates are down and may even be lower than what Freddie Mac reports in its survey. This is because Freddie Mac gives a national average. Locally, rates may be lower or higher.
Click here to get a rate quote for your area.

Northeast Region Average : 4.49 with 0.6 points
Southeast Region Average : 4.52 with 0.8 points
North Central Region Average : 4.52 with 0.6 points
Southeast Region Average : 4.52 with 0.6 points
West Region Average : 4.45 with 0.8 points

You'll notice that, in the West Region, rates tend to be lowest and fees tend to be highest. This is because loan officers in the West Region tend to quote loans with "1 point" standard. This results in lower rates for borrowers and applicants, but higher fees.
The opposite is true in the North Central Region where fees tend to be lower, and rates tend to be higher.
Neither system is better or worse -- choose the setup that works best for you. If getting the absolute lowest mortgage rate is more important to you than getting the absolute lowest fees, for example, just ask for it. Your loan officer should be able to walk you through your options.
Click here to get a rate quote.

There's a Refi Boom Starting. Don't Watch It Pass.

Mortgage rates look like they'll fall some more, but don't sit by and wait for something better.
History has shown that mortgage rates can -- and do! -- change quickly. And because rates are unnaturally low to begin with, once they start to worsen, they should worsen in a hurry.
Exploit today's market while you still can. Click here to get a rate quote and be a part of this year's blooming Refi Boom.

Contact The Mortgage Mark with any questions!

www.themortgagemark.com

mark@themortgagemark.com

Fannie to inspect delinquent homes

2011-06-13T09:01:00.000-07:00

If you happen to see a contractor walking around your house, taking pictures, don't panic. It's just your lender "inspecting" your property.
According to new rules announced by Fannie Mae this week, mortgage servicers will be required to "order" a "property inspection" no later than 45 days after a homeowner misses a mortgage payment. "The servicer must continue to obtain property inspections every 30 days thereafter" until the delinquency is resolved.
If the servicer determines that the property is abandoned "the servicer must perform an interior inspection upon confirmation of abandonment," according to Fannie's guidelines, which go into effect on Sept.1
Fannie's current policy requires inspections only when servicers are unable to reach delinquent borrowers or when they determine the borrower isn't willing to try to work out a solution. But the inspections are not required until the mortgage is 135 days delinquent or the servicer begins foreclosure proceedings.
The new policy is an extra effort to try to protect Fannie's investment in these assets. But has Fannie heard of the widely reported stories of banks breaking into people's homes to "inspect" and "secure" them, claiming the homes are vacant when they are not?
For example, there is the story Nancy Jacobini in Orlando. Late last year she called 911, desperately asking for help as a man tried to break into her house. After police arrived, she learned that the man was a contractor who wanted to "secure" her home on behalf of her lender, Chase. The inspector said he thought the house was vacant. A Chase spokeswoman has told me this was an isolated mistake and that they have apologized to Jacobini.
Speaking of mistakes, you might want to know that some of these lender/servicer break-in cases that have been reported over the last two years involved homeowners who were current on their mortgages.
But let's get back to the new policy.
First, it's important to understand how this works and the number of people involved in this process. Servicers don't hire and train their own inspectors. They hire a property management company, which then hires contractors to go out and do the "inspections."
The question is how does the servicer's inspector determine whether a home is vacant before securing it? Do they peek through your window? Do they assume your home is vacant if you haven't mowed your grass and happen to be on vacation?
A Fannie spokeswoman says the process involves various steps and it includes checking to see if utilities are on, if there are people in the house and if there is furniture in the property.
But how do you know if there is furniture in the property before you enter the house?
The spokeswoman declined further comment beyond what is explained in the guidelines.
According to the guidelines, "The servicer must be able to obtain a signed copy of the inspection report that first reported the vacancy, in which the person who actually performed the inspection certifies that he or she has personally gone to the property location and confirmed that the property is vacant."
To avoid any misunderstandings, on top of paying your mortgage you should probably make sure you pay the utility bills before you go out of town.

Contact The Mortgage Mark with any Questions!!

mwilkins@capitalfmc.com
www.themortgagemark.com

5 Need-to-Knows Before You Move Into the Neighborhood

2011-06-02T14:08:00.000-07:00

5 Need-to-Knows Before You Move Into the Neighborhood

Buying a home can feel like the most intense research project ever- to make a smart buy, you’ve got to get educated about mortgages, learn how to read a contract, do a deep dive into property condition issues or homeowner’s associations and pay attention to what’s going on in the economic news and the real estate market. But there’s at least one more area wise buyers don’t neglect: neighborhood research.

We know, at a gut level, what kind of neighborhoods we like - tree-lined streets, convenient shops, etc. and so forth. But what specific details should you investigate before you buy or move into an area? Here are 5 items you definitely need-to-know before you move into a neighborhood:

1. Details on Shady Dealings. Most of us think we know which sides of the railroad tracks, so to speak, have high crime rates and which are supposedly safe. But before you buy a home or move into a neighborhood, it behooves you to actually do the research and see whether or not your beliefs are accurate. Check out the Megan’s Law databases to see where registered sex offenders may live, especially if you have young children or other reasons to be particularly worried. Google your address, which might pop up details such as whether your intended home has ever been a meth lab, among other things.

And, whatever you do, don’t forget to tap into Trulia’s new Crime Maps – in a number of metro areas (which will be constantly expanding), you can view uber-detailed (and sometimes surprising!) crime data that is uber-relevant to you. If you’re trying to decide between two homes in different parts of town, you can even toggle back and forth between the neighborhoods to compare them! For example, some neighborhoods have a spike in car break-ins after people leave for work. Or maybe one side of your street-to-be has a significantly higher rate of violent crimes than the other.

That’s the kind of thing you should find out before you move in, don’tcha think?

2. How Recession-Resistant it is. Let’s face facts: some neighborhoods, cities and states have fared better than others over the course of the recession. An area’s proximity to job opportunities, saturation with troubled subprime loans and the amount of housing supply (vs. demand) all have something to do with whether prices plummeted or have held up over the last few years.

Sometimes, a neighborhood’s recession-proofness (or -proneness) is obvious: if the street on which you’re house hunting is riddled with ‘For Sale’ signs (and foreclosure riders on top of them), or you know for a fact that the home you’re buying is a short sale for which the sellers paid double your price just 5 years ago, you might be in an area that has been hard hit. Also, if your neighborhood has a sky-high rate of price reductions or it is much less expensive to buy than to rent a home in your area, these are other indicators that the recession might have hit your district pretty hard.

The fact of the matter is, some of the hardest hit neighborhoods are where the best deals are to be found, so I’m not necessarily suggesting that you shy away from buying in such an area. But do know that the harder hit areas might take longer to see an uptick in home values, too, so the harder hit your neighborhood was by the real estate recession, the longer you should plan on staying put before you buy, to make sure you don’t end up needing to sell and stuck in an upside-down home. While a 5 to 7 year plan might make sense in an area where the real estate market has been pretty robust over the last few years, you might want to be okay with planning to hold your home upwards of 10 years before buying in a foreclosure-riddled area (and you might also want to make absolutely sure you’re very happy with the deal you’re getting).

On the flip side, the more recession-resistant your area has been, the more likely you are to encounter sellers with less flexibility on pricing or even, gasp!, multiple offers!

3. The Neighborhood’s Flavor. Is the area you’re considering a hot spot for outdoor adventures and family events at the park, or chi chi restaurants and wine tastings at the museum? Find out by pulling up some listings on Trulia and scrolling down the see how others who have lived in the area have rated and reviewed it.

Also, take a look at NabeWise- it’s only available for about 10 large cities right now, but it’s got a super useful function where you can search by city and what’s important to you (like being in a trendy neighborhood, or one that’s got ample public transportation) and it’ll surface neighborhoods which might be a good fit for your values.Neighborhoods are even ranked based on prestige and how beautiful residents are (the latter of which I find fascinating - but more as a measure of where the raters’ heads are at than of anything you must include in your neighborhood fit equation!).

4. Where are the hot spots? Before you buy or move into an area, equip yourself with a knowledge of where all the stores, farmer’s markets, parks, restaurants and other hot spots your family will want to use are located vis-a-vis your home-to-be. (Hint: your local real estate agent is a fabulous source for this kind of information - they are especially gifted at knowing where the good food and shopping is!) Your Trulia Mobile App will alert you to nearby haunts that have Yelp! reviews; also, your neighbors-to-be can be a great source of this sort of information - knock on doors and ask for their recommendations.

It also makes sense to search the web for the various sorts of things your family is into, and your new neighborhood’s name. An internet search for running trails in my neighborhood is how I found out my house was just a couple of blocks away from a largely hidden lake we now visit regularly. Then, drive around and see what you can see - or find someone to drive for you. Once, when I moved to a new town, I marched myself onto a city bus, sat behind the driver, told them I was new in town and asked them to point out things they thought I needed to know. I got an hour long tour through three neighboring towns - for $1.25!

5. What the neighborhood looks and feels like at different times of day/different days of the week. Have you ever visited a Sunday afternoon open house when the sun was shining, birds were singing, and charming neighborhood rugrats were rolling their hoops up the street? (Okay - that was a century or two ago, but you get the gist.) Then, you come back a couple of weeks later for your inspections at dusk and find those same rugrats (or their parents!) spraying graffiti all over “your” garage, the neighbors’ underpants flapping on the line in the front yard and the other neighbors’ music blaring? File that under disappointing.

The nature of a neighborhoods changes - sometimes dramatically - before and after the sun goes down. Also, if you visit a home during the week or when it’s cold and rainy out, the street will undoubtedly be busier and noisier - more reflective of the extremes you should be aware of - on the weekend or when the weather is grand. So, before you buy, go see the place in sunlight and after dark, during the week and on the weekend. And, again, there’s nothing wrong with knocking on the neighbors’ doors, telling them you’re thinking of buying, and seeing what kind of insider information you can glean from them!

Contact The Mortgage Mark with any questions!!

www.themortgagemark.com

mwilkins@capitalfmc.com

The Consequences of Walking Away

2011-04-28T11:23:00.000-07:00

Have you had a conversation with someone in the last 30 days about the consequences of walking away from your mortgage?

If the answer is yes, you are not alone.

With an estimated 11 million people underwater on their mortgage, (owing more on their mortgage than their home is worth), even the most credit-worthy consumers are considering walking away from their mortgage.

“Walking away from a mortgage,” or what’s known as a strategic default, usually results in either a short sale or foreclosure and many people in this position are asking one simple question:

What are the consequences of walking away from a mortgage?

Walking Away from a Mortgage: The Consequences

Generally speaking, if you are considering walking away from a mortgage the major consequences will include:

Impaired credit
Deficiency risks
Tax consequences
Moving costs
Professional implications

Impaired Credit

Most people are aware that walking away from a mortgage will mean their credit score will take a hit. What most people may not be aware of is between short selling and foreclosure, there is very little difference in how much your credit score is impacted. The main difference between a short sale and foreclosure is how soon you can qualify to buy a home again after the event, not how many points your credit score went down.

In addition to your credit score taking damage points, it is also common for credit card companies to cancel credit cards or lower your credit limit as a result of missing mortgage payments. It is also common that it will become more difficult to obtain financing for larger ticket items such as autos or furniture — or any other type of revolving account after walking away from a mortgage.

Deficiency Risks

Depending on which state you live in, there are varying deficiency risks associated with walking away from your mortgage.

Translation: Your lender may sue you for the difference between what you owe and what your short sale or foreclosure proceeds were.

Anti-deficiency protection is limited to a minority of states and for most states in the U.S., there is no protection for homeowners from a lender pursuing the difference between what they owe and what the home sells for in foreclosure.

Further, even if your state has anti-deficiency laws in place, don’t think you are free from deficiency risk. Whether you have deficiency risk or not, depends on factors such as: whether you have a second mortgage; did you refinance and take cash out; is your mortgage the one you got when you originally bought the house, and more.

Which is why when it comes to managing your deficiency risk, keep this saying in mind:

Nothing is more expensive than cheap legal advice.

If you are concerned that you may have deficiency risk, you should speak with a real estate lawyerwho can provide legal advice for your particular situation. Only a real estate attorney can accurately provide you the specific advice for your situation. Don’t rely on your neighbor’s advice or your brother-in-law who just short-sold his house and recommends that you should be okay by just walking away.

Tax Consequences

If you are considering walking away from a mortgage on your primary residence, there is a chance that you may have some tax liability. If you are considering walking away from a mortgage on a second home or investment property, there can be a significant tax liability and you should consult your tax accountant.

Moving Costs

One of the commonly under-estimated consequences of walking away from a mortgage is the expense and process of moving. Some of the common concerns related to moving include:

Moving into a rental — perhaps after decades of being a homeowner.
Possibly explaining to the landlord any credit report concerns as a result of missed mortgage payments.
Paying for moving expenses. Utilities, deposits, moving trucks and other expenses can add up fast.
Moving family members school, work or community activities they have gotten used to.

Many of the people I have talked with who have went through the process of walking away from a mortgage cited “moving” as the one consequence they hadn’t fully considered before actually doing it.

Professional Implications

Depending on what you do for a living, you may have professional consequences as a result from walking away from a mortgage. The number of professions where your credit profile matters has grown over the last decade and if you are in a situation where your credit profile matters, you should know what the professional implications are before you walk. After all, you don’t want to lose your house and your job at the same time.

Walking Away from a Mortgage: The Single Biggest Mistake You Can Make

When making the decision to walk away from a mortgage, the consequences are certainly something to consider as part of the decision process. And in my own personal experience of short-selling a house, there is one big mistake that you can make in the process:

Not being fully informed of what the consequences are of walking away from a mortgage.

Once you have educated yourself about the consequences and researched all of the possible options…

… the choice is still yours.

Contact The Mortgage Mark with any questions!

www.themortgagemark.com

mark@themortgagemark.com

Five Costly Home Buying Mistakes

2011-04-04T11:34:00.000-07:00

Buying a home is a big financial commitment – very likely, the biggest financial investment you’ll ever make. And if you don’t go about it the right way, you could end up making costly mistakes along the way. Here are five costly home buying mistakes:

Trying to time the market bottom

No doubt, the real estate market has been in a tailspin for several years now. As a result, everyone is in limbo — sellers are on the sidelines because many of them owe more on their homes that the home is worth, and buyers are waiting for prices to drop further. Remember, buyers: Home prices are just one factor in how much a home will cost per month. The other consideration is mortgage rates. They’re rising — and that means higher monthly payments. In fact, even if home values fall — and we’re expecting them to drop another 5-7 percent this year — higher mortgage prices could counteract that. For example, say a house was worth $300,000 in November 2010. If you bought it then, got a fixed-rate mortgage of 4.1 percent and put 20 percent down, it would cost you a little over $1,200 a month. If you waited just two months, and values dropped 1.8 percent, it would cost you $63 more per month; if you waited 14 months, when values are projected to be down about 6 percent and mortgage rates are projected to reach 5.7 percent (per Freddie Mac), your payments would be $126 more per month. Ouch.

Not researching loan options

Get this: Borrowers are spending twice as much time researching a car purchase than they are home loans — 5 hours versus 10, respectively — even though homes cost an average of five times more! This disparity can cost you thousands of dollars over the long haul. That’s why it’s important to shop around for different loan options. Contact The Mortgage Mark to compare different loan options.

Buying a house you can’t afford

In addition to getting pre-approved before you house hunt, know that as a general rule of thumb, the total cost of your mortgage payment (including any taxes and insurance) — should not exceed 30 percent of your take-home pay.

Not knowing your credit score

Find out what your FICO score is (or get a ballpark credit score ) and if it’s sub par – in the low 600s, for example – launch a campaign to raise it, keeping in mind that even a 20-point increase could save you thousands of dollars over the life of the loan. What’s ideal? The lowest interest rates are reserved for those with a score of 720 or above.

Falling in love too quickly

Love is blind! Don’t let your emotions get to the best of you. If you do, you may overlook costly flaws, skip an inspection, fail to factor in commute times (gas prices are up there!), property taxes, the location/neighborhood (an important consideration for resale purposes), and more. To ensure you’re getting the best house at the best price, take the time to shop around, comparing at least three homes before you make a decision. You’ll be glad you did.

Contact The Mortgage Mark with any questions!!

Mwilkins@capitalfmc.com http://www.themortgagemark.com/

FHA has raised the monthly mortgage insurance premiums

2011-02-23T07:54:00.000-08:00

FHA has raised the monthly mortgage insurance premiums

If you haven’t heard, FHA announced on February 14th that it is raising the annual mortgage insurance premiums, also known as the FHA monthly mortgage insurance. These changes are mentioned in Mortgagee Letter 11-10 and become effective on or after April 18th, 2011. The new change is 25 bps more.

I have already heard that some of you think this will hurt the housing market and our economic recovery. Why the changes? HUD wants to strengthen the FHA’s Mutual Mortgage Insurance Fund, known as the MMIF. Think about it this way. If FHA doesn’t become pro-active now and FHA disappears in the future, then where do you think we would be regarding financing options.

Keep in mind that Fannie Mae has a pricing change that goes into effect on April 1st, 2011. Pricing Hikes for Conventional Loans in April 2011 That many lenders and investors have already made this change to their pricing. Also, there is no change to the Upfront Mortgage Insurance Premium of 1 percent for FHA loans, just the monthly premiums have been changed.

Old verse New Monthly Mortgage Insurance Changes

This chart is from Mortgagee Letter 11-10 – Annual Mortgage Insurance Premium Changes -

As you can see by the red arrow, indicating that this goes into effect on April 18th, not April 4th. So what does this all mean to those refinancing or buying new homes with a FHA mortgage?

This is based on a $250,000 sales price and the end result is that it would cost the buyer $50.26 more in their total monthly mortgage payment. You can also look at it from the flip side when qualifying buyers. This could lower the new buyers purchasing power by about $9,000. Meaning, instead of the $250,000 purchase price in the example, they can now afford a $241,000 home.

This new change is for your primary 1 to 4 unit properties. This change does not affect Title 1 loans, the HECM loan (reverse mortgages – which I am writing about tomorrow), the HOPE loan, and a few other types of FHA loans. This can also be found in the new FHA mortgagee letter 11-10.

There are also new changes to how one would have to request a FHA case number, cancellations of FHA case numbers, and a few other issues. These changes can also be found in the new FHA mortgagee letter 11-10.

Here is a quick breakdown of different purchase prices just to give you an idea how much more your mortgage payment will increase because of the new FHA monthly mortgage insurance change. In simple math, your mortgage payment will go up $10 per month for every $50,000.

Contact The Mortgage Mark with any questions!!

http://www.themortgagemark.com/ mwilkins@capitalfmc.com

5 Insider Secrets For Buying Your First Home

2011-02-17T09:52:00.000-08:00

Buying a home is not a discrete event; it's a process - a sequence of events that happens over time, sometimes over as long as several months or even years! While general guides to buying a home are a dime a dozen, I'vm excited to share with you some insider secrets you may not have heard elsewhere - one for each stage involved in buying a home. Here's to helping you make the best decisions at every phase of your homebuying process!

Stage One: Deciding Whether It's The Right Time to Buy.

Insider Secret: The market is the least important factor you should consider when deciding whether and when to buy a home.

Why: Everyone knows affordability is at an all-time high. Home prices are low, and so are interest rates. But trying to time the market is a fool's errand; many who get caught up in that game of trying to make sure they buy at the absolute bottom will end up losing out on very, very favorable conditions.

Beyond that, the most important considerations when deciding whether and when you should buy a home are personal, not market driven. On today's market, it only makes sense to buy a place if it's going to be sustainable and work for you for at least the next 4-5 years [if your town's real estate market has been fairly recession-proof] or 7-10 years [if the housing/foreclosure crisis has hit your area pretty hard].

Against this "smart holding period" backdrop, smart buyers decide to buy when it makes sense for:

- Their life plans (i.e., they are comfortable making the commitment to live in the same town, and the commitment to )

- Their family plans (i.e., whether they plan to get married, have children or empty their nest in the time they plan to own the home - and the implications of these plans on their space needs and location priorities)

-Their career plans (including, but not limited to: whether they have job or income security, whether they feel they will be working in the same area for the foreseeable future, and whether they want to work less or start their own business in the months or years to come)

-Their financial plans (including foreseeable changes in income and expenses, e.g., kids going to college or making partner at the firm).

Stage Two: Getting Pre-Approved. http://www.themortgagemark.com/

When you work with a mortgage banker who has a strong track record of helping your real estate agent's clients out, you end up in a best of all worlds situation, nine times out of ten. First off, your agent will take you much more seriously once a mortgage broker they know and trust has run your credit, checked your income and approved you for a loan, as well as communicated with your real estate pro about your qualifications and what you can afford. Secondly, your agent can help you communicate with your mortgage broker, sometimes helping get past appraisal glitches or facilitating other workarounds, as they come up. Third, you get the assurance of working with a mortgage pro who has been vetted and vouched for by someone you not only trust, but someone who can verify that the mortgage broker has the ability to get transactions closed in the timely manner required of today's real estate sales contract. Otherwise, you may end up working with a competent mortgage broker who has a great track record when it comes to refinancing, but can't keep up with the pace and common obstacles to getting a home financed in the context of a sale.

On top of that, sometimes the relationship can help you negotiate out of a couple of line item loan fees (if your particular mortgage rep has the power to get them down at all), if push comes to shove and cash is tight to close the deal. Assuming you are working with a real estate pro you really trust, working with a mortgage broker they trust can save you, rather than cost you, money.

Stage Three: House Hunting

Insider Secret: "Distressed" doesn't always equal "discounted" - in some cases, a "regular" sale can be a deeper deal.

Why: Short sales and foreclosures have grown to comprise roughly 30 percent of the homes sold on today's market, even higher in some areas. The average sale price of foreclosed homes was 32% lower than the average sale price of non-foreclosed homes, at last count. However, it's not always the case that foreclosed homes or short sales - homes which are being sold for less than what the seller owes on their mortgage(s) - offer the buyer a fabulous discount.

Mortgage servicers and asset managers who make decisions about distressed properties are on the hook to their investors to recoup as close as possible to the current fair market value of every home they sell. Some banks even have a general rule of rejecting offers more than 10 percent or so below the home's list price, preferring instead to reduce the price by that amount and put the home back on the open market to see if any new buyers are activated by the price reduction to make an offer better than the lowball offer that was initially put on the table. On short sales, the bank is trying to get as close as possible to recovering what the seller owes - and may or may not be concerned with what the fair market value of the home is. (Nine times out of ten, there will be a big gap between fair market value and the seller's outstanding mortgage balance. If there wasn't, the seller wouldn't need to do a short sale!)

With so many distressed properties and homes with depressed values on the market, in many areas, the individual, non-distressed home sellers who are putting their homes up for sale right now are those who are very motivated to sell. Further, they are more likely to be flexible with you on everything that is negotiable, from contingency and escrow periods, to price, to repairs and included items.

Also, individual sellers can be emotionally motivated to sell to move on with their lives, get into their bigger (or smaller) house, or move on to their next job; banks, on the other hand, aren't people (!), so lack that emotional sense of urgency to get the properties sold, no matter how urgently you may think they should be trying to get rid of the foreclosed properties they own. (If you've heard the old advice that banks don't want to be in the home-owning business, I can tell you this. That is true, in a very general sense, but now they are and will be - for a long time to come. They have no emotions, have no urgent need to sell or move, and are not willing to give houses away at pennies on the dollar to get out of it, no matter what those infomercial folks say.)

Long story short: you can sometimes negotiate a better deal with an individual seller on a "regular" sale than with a bank on a distressed home sale. So, don't limit your house hunt to foreclosures and short sales, if you're looking for a good deal on your home.

Stage Four: Negotiations

Insider Secret: Your family and friends can cause you to lose your dream home.

Why: With so much information on the web and the news every day about the recession and the buyer's market, everyone seems to be an armchair economist/real estate savant. But much of that news is national and based on medians, averages and trends. That is, it might not necessarily apply to every home on the market in every city, and more importantly, it might have nothing to do with "your" particular home.

When I was a little girl, my best friend's grandfather would very carefully hand each of us a quarter, always doling it out with the sage admonition: "Don't spend it all in one place." We'd always smile, look at each other, then go ask our Moms for ten bucks apiece. In the same vein, people who are not currently in the market for a home have no idea what an individual home should "go for." If you tell your parents, church pals, or colleagues at work the blow-by-blow details of your offer, counteroffers, etc., you should expect to hear things like, "Oh, you're paying way too much!", "I think you should push them down another $10K," or "You know, you're in a better bargaining position than that." And sometimes, taking that sort of advice will end up blowing your deal. Work with your trusty real estate broker or agent to develop a smart strategy - with their experience in your local market - about what price and terms to offer. Then keep working with them to manage and maintain realistic expectations as you proceed through negotiating the contract to buy your home.

Stage Five: Escrow, Inspections and Underwriting

Insider Secret: It's critical that you attend your home inspections.

Why: When it comes to inspections, many first-time buyers expect that a home will either pass or fail. Except in a few jurisdictions where the government imposes certain condition requirements for a home to be sold, the home inspection is more about educating you, the buyer, as to the details and nuances of the home's condition than about seeing if the place hits a particular target for "good" or "bad" condition.

Home inspectors don't just look for things that need fixing, they also look to understand the home's systems and features, as well as to point out areas that will require your ongoing maintenance, highlight emergency shutoffs and other need-to-knows, and indicating where you should have specialists further inspect items of concern. Many home inspectors create vivid, detailed electronic reports - some, complete with color photos. But that's not enough!

If you're physically onsite at the home during the inspections, the inspector can physically show you the shutoffs for water, gas and electric - and how to use them. They can also point out, in person, any things that need repair, and give you some tips for maintaining the place in tip-top shape. Also, in many states, the general home inspector is legally prohibited (vs. the pest, roof or other "specialty" inspectors) from issuing a written quote or bid for repairs, to avoid a conflict of interest where they'd try to fabricate flaws in the home to get the repair job. However, the repair costs are one of the most important things a smart buyer wants to know!

If you show up, many inspectors will give you a rough range it would cost you to do various repairs, or otherwise indicate to you whether the needed repairs are "big deal" or "$10 home improvement store" fixes; some will even give you a few references to contractors they trust.

All around, you'll get much more of the detailed information you need to know whether and how to move forward with the transaction if you should up in person to the home inspections, rather than just waiting for a copy of the report to come to your email.

Contact The Mortgag Mark with any questions!

http://www.themortgagemark.com/ mwilkins@capitalfmc.com

Government Mortgages May Get Pricier, Harder to Come By

2011-02-15T09:51:00.000-08:00

Government Mortgages May Get Pricier, Harder to Come By

Government loans, such as those backed by Fannie Mae, Freddie Mac, and the FHA, are slated to get more expensive and harder to qualify for, assuming changes recommended by the Treasury are implemented.

The agency released their recommendations for a complete overhaul of the mortgage market today, essentially calling for less attractive government-backed mortgages to restore the largely absent private market.

Among the changes they’d like to see are higher down payment requirements for Fannie and Freddie backed loans (10% down) and costlier annual mortgage insurance premiums on FHA loans (up .25%).

That, along with higher guarantee fees on loans securitized by Fannie and Freddie, should get the private market for mortgages up and running again.

Additionally, Treasury has recommended that the conforming loan limit fall to $625,500 from the current elevated level of $729,750 in the most expensive regions of the country on October 1, 2011.

All of these measures are aimed at reducing the government’s share of the mortgage market, which could prove a burden to taxpayers if not dealt with.

But the move could push mortgage rates higher, which are already at 10-month highs, according to the latest release from Freddie Mac.

And the fear is that such changes could throw a wrench in a possible housing recovery later this year.

The report noted that more than nine out of every ten new mortgage are guaranteed or insured by the government.

Contact The Mortgage Mark with any questions!

http://www.themortgagemark.com/

mwilkins@capitalfmc.com

Newspapers Don't Track FHA Guideline Change(s)

2011-02-07T08:20:00.000-08:00

You can't always believe what you read in the papers. Especially when it pertains to mortgages.

Newspapers Don't Track FHA Guideline Change(s)

Newspapers are losing revenue; closing, shrinking, and consolidating along the way. Profits are pressured. So, as one way to lower their costs, editors are increasingly replacing experienced beat writers with "syndicated" articles.

Syndicated articles are typically well-written pieces of content, addressing common topics clearly and plainly. And they're plentiful. Editors can select from a pool of content and publish as-needed instead of keeping paid writers on-staff.

Syndication can be a great page-filling strategy, but following a path like that requires care. What was written last year is not always applicable today. And editors have to know the difference. With respect to mortgages, unfortunately, they often don't.

The syndicated article is 11 months -- and 2 FHA guideline changes -- behind-the-times.

Your newspaper is giving bad information.

The Story On FHA Mortgage Insurance Premiums

The FHA does not make loans to homeowners. Instead, it insures loans that lenders make to borrowers.

Here's how it works.

The FHA prints a rulebook of income guidelines, asset guidelines, etc, and tells banks "so long as your borrowers meet the requirements in this rulebook, we will insure the loans you make against defaults." If the loans default, the FHA then repays the banks' claims using an insurance coffer that is self-funded by said borrowers.

The FHA's insurance is officially "mortgage insurance premium" -- often abbreviated as MIP. This is as compared to "private mortgage insurance", or PMI, the type of insurance required on certain conventional, non-FHA loans.

FHA mortgage insurance premiums are collected in two parts:

1.Some percentage of the loan size paid up-front at closing, paid by all borrowers

2.Some percentage of the loan size, paid monthly, paid by all borrowers except those with 15-year fixed mortgages whose loan-to-values are 90 percent or less

And this is where syndication gets it wrong.

The syndicated article at top incorrectly lists the size of the FHA upfront mortgage insurance premium. The correct value is 1 percent -- not the 1.75 percent listed at top. And the crux of the issue is not that the article itself it wrong, it's just that the article is wrong today.

It was once correct, but that was 11 months ago.

The FHA has changed its rules twice since March 2010 -- some of it pretty high-profile -- but I'm pretty sure your local news editor wasn't keeping up on the story.

I know that mine wasn't.

Stay Up-To-Date On FHA Mortgage Guidelines

You can't be expected to know when the papers are getting it right or wrong with respect to mortgages, so take the papers out of the equation. I update this website every day with news of the mortgage markets and changes coming down the pike.

Mortgage rates and mortgage markets change quickly and often. Unless you're plugged in to the source, you're probably just reading yesterday's news.

Contact The Mortgage Mark with any questions!

http://www.themortgagemark.com/

mwilkins@capitalfmc.com