Mortgage and Financial News

First Time Homebuyers

2009-09-18T12:24:00.002-04:00

Time is running out to qualify for the first time home buyer tax credit of $8,000. If you are looking to take advantage of this program to quallify for free money from the government you better hurry!

This program will only be in effect until November 30th, 2009. Do not get left out of this program if you want to buy a house. Some houses can take months to purchase.

If you find a home and the house is a bank owned property, short sale or is currently being foreclosed on it could take months to get into the house. If you start the process today you will have a much better chance of getting into the home in time to qualify for the $8,000.

There is a lot of money on the table for you and there are great deals out there. You could not pick a better time to purchase a home!

Visit www.affordablehomemortgage.com for all of your mortgage needs.

Have a great day.

HUD To Allow $8,000 Tax Credit To Become a Down Payment

2009-05-26T10:33:00.003-04:00

Great news for first-time home buyers. Last week, Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development stated that the Federal Housing Administration (FHA) is now going to permit it's lenders to allow home buyers to use the $8000 tax credit as a down payment. Previously, buyers had to wait to file their taxes to take advantage of the tax credit, which did not allow home buyers to use the $8,000 tax credit when they needed it most – for the down payment.

By allowing buyers to utilize the tax credit as a down payment, money will now be freed up for the buyer that would otherwise be needed at closing. This will allow the first-time home buyer to save their money for a rainy day or for home improvements. Or it will allow the first time home buyer who does not have enough money for the down payment to access the $8,000 for the down payment.

This new development has the ability to bring thousands of new buyers into the market that would have otherwise has to wait to purchase a home.
This new program has the potential to stimulate the real estate market more than all of the other programs that are out there by attracting almost any first time home buyer that would like to buy a home.

If you are a first time home buyer you could not pick a better time to buy than right now. All of the stars are aligned for you. Interest rates are low, home prices are low and tax rebates are high. I wish I were a first time homebuyer right now! Sellers would have to give the home away for free for there to be a better deal. This is the absolute best time to be a first-time home buyer.

If you are a first-time home buyer, get out there and find your home before this tax credit is gone in November. The tax credit will expire on November 30th. BUY A HOME BEFORE THEN!

Check out www.thebriteway.com for your mortgage needs.

Have a great Tuesday!

105% Mortgage Refinance

2009-05-07T10:46:00.001-04:00

Lenders are now announcing if they will offer the new Refi Plus program that was structured by FNMA to assist some homeowners who are faced with declining property values. The program details are now being announced, but some rules are clear.

First, the Refi Plus program targets those homeowners who have made their payments on time, are good risks, but simply cannot refinance to a lower rate because their appraised property value has declined. You can refinance your home up to 105% if its current value. Here are some highlights of the program:

Second mortgages cannot be paid off with this refinance. They must be subordinated, meaning that the holder of those 2nd liens must accept the fact that they will remain in the second position in regards to the prioritization on liens for payoff considerations.

These are credit qualifying loans. While details are still being announced, it appears that the minimum middle credit score must be 660.

Mortgage payment history must show no payments in excess of 30 days late in the past twelve months.

Debt-to-income Ratios – will be considered, so the total monthly credit debt for a borrower cannot exceed 45% of their gross monthly income.

Interest rates are considerably higher than the best rates offered, which makes sense when one realizes the excessive risk of a lender giving someone more money than the home is currently worth.

The existing mortgage must be owned now by FNMA. Curious if your loan may qualify? Visit www.fanniemae.com and click on the window that says “Does Fannie Mae Own Your Mortgage?”

More information will follow over the next several days as program guidelines are interpreted, and interested homeowners should contact their current mortgage servicer to learn if they will offer this program.

Visit www.thebriteway.com is you would like to apply for any type of mortgage.

Happy Thursday!

What is MERS?

2009-04-23T23:25:00.000-04:00

MERS is a tiny data-management company created by mortgage lenders to save money on filing fess. Seems simple enough right? How could this become one of the major problems in the housing market today? Bankruptcy judges, foreclosure attorneys, and homeowners going through the process of bankruptcy or foreclosure are starting to find out! Only people working in the mortgage industry had heard of MERS before the collapse, now MERS is popping up everywhere.

Although the average person has never heard of it, MERS — short for Mortgage Electronic Registration Systems — holds 60 million mortgages on American homes, through a legal maneuver that has saved banks more than $1 billion over the last decade but made life maddeningly difficult for some troubled homeowners. In case that slipped by you – 60,000,000 mortgages! I do not know how many mortgages there are all together but that is most of them!

MERS was created by lenders seeking to save millions of dollars on paperwork and public recording fees every time a loan changes hands, and all of you know how many times a mortgage changes hands. MERS is a confidential computer registry for trading mortgage loans. From an office in the Washington suburbs, it played an integral, if unsung, role in the proliferation of mortgage-backed securities that fueled the housing boom. But with the collapse of the housing market, the name of MERS has been popping up on foreclosure notices and on court dockets across the country, raising many questions about the way this controversial but legal process obscures the tortuous paths of mortgage ownership.

If MERS began as a convenience, it has, in effect, become a corporate cloak: no matter how many times a mortgage is bundled, sliced up or resold, the public record often begins and ends with MERS. In the last few years, banks have initiated tens of thousands of foreclosures in the name of MERS — about 13,000 in the New York region alone since 2005 — confounding homeowners seeking relief directly from lenders and judges trying to help borrowers untangle loan ownership. What is more, the way MERS obscures loan ownership makes it difficult for communities to identify predatory lenders whose practices led to the high foreclosure rates that have blighted some neighborhoods.

To a number of critics, MERS has served to cushion banks from the fallout of their reckless lending practices.

In an interview, the president of MERS, R. K. Arnold, said that his company had benefited not only banks, but also millions of borrowers who could not have obtained loans without the money-saving efficiencies it brought to the mortgage trade. He said that far from posing a hurdle for homeowners, MERS had helped reduce mortgage fraud and imposed order on a sprawling industry where, in the past, lenders might have gone out of business and left no contact information for borrowers seeking assistance.

About 3,000 financial services firms pay annual fees for access to MERS, which has 44 employees and is owned by two dozen of the nation’s largest lenders, including Citigroup, JPMorgan Chase and Wells Fargo. It was the brainchild of the Mortgage Bankers Association, along with Fannie Mae, Freddie Mac and Ginnie Mae, the mortgage finance giants, who produced a white paper in 1993 on the need to modernize the trading of mortgages.
At the time, the secondary market was gaining momentum, and Wall Street banks and institutional investors were making millions of dollars from the creative bundling and reselling of loans. But unlike common stocks, whose ownership has traditionally been hidden, mortgage-backed securities are based on loans whose details were long available in public land records kept by county clerks, who collect fees for each filing. The “tyranny of these forms,” the white paper said, was costing the industry $164 million a year.

Although several courts have raised questions over the years about the secrecy afforded mortgage owners by MERS, the legality has ultimately been upheld. The issue has surfaced again because so many homeowners facing foreclosure are dealing with MERS.

When foreclosures do occur, MERS becomes responsible for initiating them as the mortgage holder of record. But because MERS occupies that role in name only, the bank actually servicing the loan deputizes its employees to act for MERS and has its lawyers file foreclosures in the name of MERS.

The potential for confusion is multiplied when the high-tech MERS system collides with the paper-driven foreclosure process. Banks using MERS to consummate mortgage trades with “electronic handshakes” must later prove their legal standing to foreclose. But without the chain of title that MERS removed from the public record, banks sometimes recreate paper assignments long after the fact or try to replace mortgage notes lost in the securitization process.

This maneuvering has been attacked by judges, who say it reflects a cavalier attitude toward legal safeguards for property owners, and exploited by borrowers hoping to delay foreclosure.

Hopefully you will not have to deal with MERS!

Check out www.thebriteway.com for your mortgage needs!

Have a great Friday!

New Bankruptcy Bill - Could be a Huge Help to You

2009-04-22T23:31:00.000-04:00

Not able to make your mortgage payments anymore? Are you considering filing for bankruptcy? If you are considering filing for bankruptcy keep an eye on the so-called "cramdown" bill. The bill, which is part of President Obama's housing plan and is making its way through Congress right now, would allow bankruptcy judges in Chapter 13 proceedings to reset the terms of certain mortgages so that more homeowners can keep their homes. The home must be a primary residence to qualify. Mortgages on rental properties or second homes will not qualify for this plan.

Currently, a Chapter 13 filing stops the foreclosure process and gives homeowners time to restructure their payments with their lender. But as the law stands right now, homeowner’s do not have the ability to alter the terms of their loans.

The passing of the “cramdown” bill would be a huge change…

Under the new bill, which has already been passed by the House of Representatives, the bankruptcy judge can reduce a homeowner’s principal balance as well as their interest rate. So let’s say that you have a $300,000 loan on a home whose value has fallen to $200,000. Under the new plan, a bankruptcy judge could eliminate $100,000 of the debt. Wouldn’t that be nice! It would be worth it to file bankruptcy just for this benefit!

Now - before you could qualify for a cramdown loan modification, you would have to show that you appealed to your mortgage lender for relief at least 15 days before you filed for bankruptcy. Easy enough right?
The plan will obviously help more people keep their homes, but the mortgage industry is not happy with the bill.

The mortgage industry opposes it because of concerns it will destabilize the housing market and lead to more bankruptcy filings. I agree with the mortgage industry that it will lead to more bankruptcy filings, but you cannot argue with homeowners who are paying on mortgage balances that are $100,000 - $200,000 more than the house is worth. There has to be some relief for these people. Let’s see what happens!

Check out www.thebriteway.com for your refinance and purchase needs!

Have a great Thursday!

FICO Offering Free Tool For Homeowners

2009-04-21T10:03:00.003-04:00

Fair Isaac Corp. is offering Mortgage Recovery Initiative(MRI), a foreclosure prevention and management tool based on consumer credit behavior feedback. The tool was developed to help facilitate mortgage modifications and mitigate new delinquencies by reducing re-defaults and preventing foreclosures. Check out their website at http://www.mortgagereliefonline.com/. The process is fairly simple and the best part about this service is that it is FREE! You can actually get some help that is easy and free.

The Minneapolis-based firm said MRI assists borrowers and lenders to be aware of and comply with the federal Making Home Affordable, http://makinghomeaffordable.gov/, guidelines. MRI users can also contact program partners such as the Homeownership Preservation Foundation, a national network of HUD certified counseling agencies, Money Management International, a full-service credit counseling agency, and Equifax.

So if you are in need of some relief with your mortgage you have no reason not to check this website out. Sign up with their program and get some answers and some guidance.

If you just need a mortgage refinance or are looking to purchase a home check out http://www.thebriteway.com/.

Have a great Tuesday!

Obama Housing Fix Update

2009-04-19T23:03:00.000-04:00

This is an update to my first article on Obama’s Housing Fix. On March 4th the government passed a housing bill aimed at reducing the number of foreclosures by helping homeowners lower their monthly payments through loan modifications and refinances.

Some banks and servicers are up and running with the new programs and some are still updating their systems to implement the changes. There are still portions of the bill that companies are waiting for clarification on. It may take a few more weeks for these companies to be ready to start taking applications for refinances and modifications. Just be patient. In the meantime the government has created a website that you can go to : http://makinghomeaffordable.gov/ . This website can help you figure out if you will qualify for the new programs that are being put into place.

Just because some of the banks or servicers are not completely ready to take on this program does not mean that you can’t call them. If your bank or servicer is not ready to start taking application they are most likely taking down names and numbers of the customers that call them to ask about the program. Then once they have the program in place they will return these customer’s calls.

The good news is that the four largest servicers in the country have agreed to participate in the program – Wells Fargo, CitiBank, JP Morgan Chase and Bank of America. This is huge! This means that most of the other banks will likely follow their lead. So help for you could be on the way!

A brief overview of the program is below – this was also in my first article:

Loan Modifications:

Mortgage companies will be reviewing requests from current customers who need to lower their monthly mortgage payments. The goal is to reduce your front end debt ratio to 31%. Your front end ratio is your first mortgage payment(principle, interest, taxes, insurances, mortgage insurance) divided by your gross monthly income. If your current front end raio is higher than 31% then the mortgage compnay will try a number of things to to reduce your monthly payment until it reached 31%.

1. They will reduce your interset rate to a low as 2%...if your front end ratio is still to high then
2. They will increase the term of your loan up to 40 years...if your front end ration is still to high then
3. They will defer some of the principle on your loan to the end of your mortgage term. This will create a balloon payment at the end of your mortgage term...if the front end ratio is still too high then
4. They can do priciple reduction on your loan. This means they will waive some of the balance on your loan. This principle reduction will not have to be repaid.

Mortgage Refinances:
The people who qualify for this will be:

1. Loans closed before January 1st, 2009
2. Owner occupied properties3. Loan to value of 105% or lower - the big change is here. Most people only qualify for a better rate if they are at 80% of lower right now.

Both of these programs offer incentives to the mortgage companies to participate in the program as well as incentives to the homeowners who keep their payments current.You can read some other articles regarding this reform at http://money.cnn.com/2009/03/04/news/economy/guidelines/index.htm

Check out details of the new program at http://www.treas.gov/initiatives/eesa/

If you need help with a refinance or a purchase check out www.thebriteway.com and give us a call.

Happy Monday Everyone!

Steps to Take Before You Refinance Your Home

2009-04-16T15:30:00.001-04:00

Rates are excellent right now and refinancing into a lower rate to lower your monthly payments might be a great idea for you. Before you call your mortgage broker or your bank you will want to follow a few steps first:

1. Take a look at your mortgage statement and find out what your current balance is and what your current rate is.

2. Pull up this website - http://finance.yahoo.com/q?d=t&s=%5Etnx – Historically and on a typical day you can take this index, the 10 Year Treasury Note, add 2% to this rate and it will give you the par rate for a 30 year fixed rate mortgage. So today the rate is 2.76%. Add 2% to 2.76% and it gives you 4.76%. This will be close to the par rate for a 30 year fixed rate loan. This is not an exact science, but it will give you a good idea. And this is the par rate so your rate will probably be a little higher if you meet all of the qualifications. This rate will be for the most qualified individuals.

3. You need to get an idea of your homes value. Pull up these two sites: www.zillow.com and www.cyberhomes.com. All you need to do it put your address in and these websites will give you an estimate of your home’s value. You can also pull up your local county property appraiser’s website and get recent sales in your area. For Hillsborough County the website is http://www.hcpafl.org/www/search/index.shtml#. This site is fantastic!

4. Now you will take your current balance on your mortgage, your second mortgage too if you have one, and divide it by the value your received from www.zillow.com or www.cyberhomes.com.

a. For an FHA loan you want your mortgage balances/home value to be 94% or less.
b. For a conventional loan you want your mortgage balance/home value to be 87% or less.

These are just a few of the steps you want to take before you call you mortgage broker, lender or bank. When you do call you mortgage person check out www.thebriteway.com.

Rates right now are excellent and if it makes sense you should look into refinancing your loan. I highly recommend a mortgage broker when you do decide to refinance…shocking huh? Considering I am a mortgage broker.

But I do have my reasons. A mortgage broker has many more options than a bank when completing a refinance or a purchase. When you contact a bank directly you only have access to their rates and programs. A mortgage broker has access to a number of different lenders and thus to a number of different programs and rates. You will be doing yourself a favor if you contact a mortgage broker.

Even better – contact both and see who can get you a better deal!

Have a great Thursday!

Tax Day!!!

2009-04-14T23:49:00.000-04:00

It is April 15th and a day that many people are hoping to forget about because they owe the government money. If you were a first time homebuyer, or had not owned a home in three years and purchased a home during 2008 then you may be eligible for a tax rebate. If you qualify then you may not have to pay and money to the government this year. Even if you did not purchase a home until 2009 you may still not have to pay! This could be great news for a lot of you out there.

If you have filed your 2008 tax return and forgot about this rebate – DO NOT WORRY – you can file and amended return and receive your rebate.

If you just purchased a home is 2009 and want to get you tax credit now – YOU CAN – check out http://www.irs.gov/newsroom/article/0,,id=205416,00.html for more details on how to do this.

The bottom line is if you qualify for the first time homebuyer tax credit there is no reason you should be paying taxes this year, well at least you should be paying a lot less in taxes this year.

Here is how the tax rebate works - For the 2008 Plan

1. If you made $75,000 or less as an individual and $150,000 or less as a married couple in 2008 then you can claim 10% of the purchase price of your home or $7,500 whichever is less. ***The house must be a primary residence.

2. So you purchased a $200,000 home in 2008 and you meet the income requirement. You can claim 10% of the purchase price of the home which is $20,000 or $7,500 – whichever is less. So you can claim $7,500.

3. So lets say in 2008 your tax situation is:
Tax Liability = $6,000
Taxes Withheld= -$5,000
Tax Credit= -$7,500
Tax Refund= $6,500

4. The above example shows that even if you only paid $5,000 in taxes during 2008 you can still get back $6,500! So you can have the IRS give you money this year. Go get it!

5. If you do decide to tax this tax refund – it is a loan. You have to pay back this $7,500 over the next 15 years – interest free. Your tax liability will be increased every year by $500. This is a great loan, but still a loan – not free money.

For more info - http://turbotax.intuit.com/support/kb/tax-content/tax-tips/6360.html

For the 2009 Plan:

The 2009 plan is much better than the 2008 plan because you do not have to pay back the tax break. And for those of you who purchased a home already in 2009 and were either a first time homebuyer or have not owned a home in 3 years or more then you can file for the $8,000 tax break on your 2008 taxes. Most people will qualify, but make sure you read the rest of the qualifications before you get too excited. Check out http://www.irs.gov/ for more info on the qualifications.

Already filed your 2008 taxes? No need to worry. You can file an amended tax return and receive your hard earned money back. Like I said earlier in the article check out http://www.irs.gov/newsroom/article/0,,id=205416,00.html for more info on filing your taxes.

So get out there and get your tax rebates if you qualify.

Check out http://www.thebriteway.com/.

Have a great Day!

Cash

2009-04-14T10:31:00.001-04:00

Last month U.S. investors had more of their assets in cash than in stocks. This is the first time in more than 20 years that this has happened. Why is this a good thing? This is a positive sign because there is a lot of money out there to continue to fuel the current stock price increases we have been seeing.

Since Black Monday back in 1987 this has been an important ratio. After the crash in 1987 investors pulled so much of their money out of stock and put it into cash accounts that the ratio favored cash over stocks. Since then this is the first time this has happened.

In March investors held a record 45 percent of assets in cash, including money-market investments, and a record-low equity allocation of 41 percent. What are the ratio’s normally you ask? Historically investors keep about 60 percent of their assets in stocks and 25 percent in cash.

This may be good news for the near future of stock prices. Because there is so much cash available that is not currently in the market investors have enough buying power to keep stocks moving higher. This does not guarantee that stocks will continue their upward trend, but it is a good sign that it is possible.

So once again, just like homes, this could be the best time to buy. Buy low and sell high is the way to make money. So even if you are not going to use the money you put in the stock market for a number of years – this could be the low. Now don’t blame me if it is not and you lose money! I am just saying – there are a lot of positive signs out there pointing to a better future for the stock market as well as the housing market.

If you need help with a mortgage check out http://www.thebriteway.com/.

Have a great Tuesday!

Stock Market is Up

2009-04-13T10:37:00.000-04:00

The stock market is bouncing back. Stocks closed up for the fifth straight week, capping the largest percentage increase since 1933. Sound familiar? The stock market just has its worst percentage decline since the Great Depression and now it is having its largest percentage increase since the Great Depression.

Why were stocks up so much? The main reasons are the positive news to come out of the G20 and that banks seem to be performing better than expected. Wells Fargo's reported earnings that were higher-than-estimated and investor speculation that banks will pass government stress tests spurred optimism that the industry's slump may be ending.

The S&P 500 gained 1.7 percent, to 856.56. It has increased 27 percent since March 9, the largest 23-session rise in 76 years. The Dow Jones industrial average added 0.8 percent, to finish the week at 8083.38. The Nasdaq increased 1.9 percent, to 1652.54. Some very positive signs for the last month.

Three of the big boys - American Express, Bank of America, and J.P. Morgan Chase helped drive an index of 80 financial companies in the S&P’s 500-stock index to a 9.4 percent advance. Principal Financial Group jumped 37.4 percent as the Treasury Department considered bailouts for life insurers, Wells Fargo surged 32 percent on Thursday when it reported that it would record first-quarter profit and Lincoln National spiked 50.7 percent.

Very impressive percentage increases, but considering the percentage that these stocks were down before the increase they still have a long way to go before most investors will recoup their money.

If the financial sector can continue to show these types of signs of a recovery for a sustained period of time the economy overall could show some positive signs. The biggest impact the improving financial sector can have is on the job market. If companies can start getting loans again, then they can start hiring again. The economy will not pull out of this recession until the unemployment rate starts getting smaller instead of bigger.

Need help with a mortgage? Check out www.thebriteway.com and give us a call.

Have a great Monday!

FHA – The Best Mortgage Out There Right Now

2009-04-09T09:34:00.002-04:00

If you have purchased a home in the past 12 months and the value was $300,000 or less, it is a good bet that you received an FHA loan to obtain the house. Mortgages insured by the Federal Housing Administration(FHA) can be the best option for today’s homeowner. These loans have minimal down-payment requirements, easier credit score qualifications and excellent rates.

The terms are so attractive that even if you qualify for a conventional loan you may still want to do an FHA loan instead!

And a lot more of people do. Since the housing market began to fall apart in 2006, FHA lending has increased 700%. In 2006 FHA accounted for only 3% of the total dollar volume of all loans, now that figure is up to 20%.

The number of approved FHA lenders has increased 500% over the past two years. These lenders know that to stay in business during this market they will need to be competitive with FHA loans.

"FHA stays active in volatile and declining markets, continuing to make mortgage credit available to borrowers, even when private mortgage providers are withdrawing," said the Secretary of Housing and Urban Development, Shaun Donovan, in Senate Appropriations Committee testimony this past Thursday. "During difficult times, it is critically important to have an entity like FHA play this role - offering families access to near-prime rate financing."

One of the primary benefits to using an FHA loan to purchase a home is the down payment required. You only have to put down 3.5% of the homes value. With most conventional loans you will need to put down 10%. In some cased you will even need to put 20% down.

Check out HUD website at http://www.hud.gov/ to get more info regarding FHA programs.

Check out http://www.thebriteway.com/ for all of your mortgage needs.

Have a great Thursday!

Loan Modification Companies

2009-04-08T11:25:00.000-04:00

The FTC is cracking down on loan modification and foreclosure relief companies। Loan modification companies can provide an excellent service for customers who are looking to reduce their mortgage payments and stay in their homes. What the FTC is trying to do is crack down on the companies who are falsely advertising that they are affiliated with the government and can guarantee results.

A legitimate loan modification company will prequalify the customer before they charge any type of fee for their service। The legitimate loan modification company wants to make sure that they have a good possibility of helping the customer through taking a complete application and running the application through a thorough prequalification test.

Unfortunately with the onset of the housing crisis a number of loan modification companies that are less than honest have come onto the market and are giving the entire industry a bad name. In an effort to eliminate these unscrupulous companies the FTC has sent 71 written warnings nationwide. They are not naming the recipients because they have not been investigated yet. The FTC searched the internet and has sent letters to advertisers who raised red flags based on their advertisements.
It is true that the homeowner can get a loan modification through their lender without the help of a loan modification company। The process will take some time and can be very cumbersome. The homeowner might spend months and numerous calls without any success. The legitimate loan modification company will be able to get a loan modification done for the homeowner much quicker and with much less time spent by the homeowner.

My recommendation is to call lender to see what you need to provide them with to get qualified for a loan modification। See if you can accomplish the task first. If you cannot then call a loan modification company. Homeowners can also call the Hope Now Alliance at 888-995-HOPE, or go to makinghomeaffordable.gov

Lenders have become more receptive to the idea of loan modifications since the government passes new legislation on March 4th, 2009. Read about this here: http://nationwidehomerelief.reachlocal.net/

Take a look at www.thebriteway.com if you need a mortgage!

Have a great Wednesday

Time to Start Buying

2009-04-07T09:57:00.001-04:00

The market has lost so much of its value over the past 12 months that there are many stocks and mutual funds out there that can and will provide good returns over the next few years. If you have gotten out of the stock market and put your money into savings accounts or money market accounts now might be the time to pull the trigger and start investing in the stock market again. Of course you need to be patient. You probably will not see 20-30% gains in one year, but over the long term you will see much better returns than you will see in savings accounts.

I am sure you have heard that before. Maybe you were burnt too bad by this last downturn to put your money back in the market. Don’t be too cautious. If you are not retiring in the next 10 years you will be better off having a good portion of your money in the stock market. Now you don’t just want to start buying any mutual fund or stock out there. You want to have a plan. Get in touch with one of your local financial planners to set up an investment plan for yourself.

If you do not know of a financial planner or advisor check out one of these companies:
www.ameriprise.com
www.oppenheimerfunds.com
www.wachovia.com

There are a number of excellent companies out there that can help you put together a plan for your investments. The market is starting to bottom out and now, more than any time over the past 20 years is the time to start buying.

The same holds true for housing. If you have been on the fence about buying a home lately, then you need to seriously consider finding a home to purchase now. Rates are low and so are home prices. That does not happen too often so take advantage.

Check out www.thebriteway.com for your mortgage needs.

Enjoy your Tuesday!

Home Prices Rise and Jumbo Rates Fall

2009-04-06T10:38:00.006-04:00

Home Prices increased 1.7% in January from December. This is the first time that home values have increased in over a year. This was an unexpected increase and was due in part to strong sales in same areas of the country including the Pacific Northwest, an area that has seen some of the largest price drops during this downturn.

While the increase is good news – we will need to see a string of months in a row with increases before we can get too excited.

The Jumbo rates are declining! Jumbo mortgages are those mortgages that are too large to be bought by Freddie Mac or Fannie Mae. Loans that are bought by Fannie and Freddie are considered conforming and the limit for those government-backed entities is $417,000 in many parts of the country, but goes as high as $729,750 in high-cost areas of the United States.

Bank of America recently began advertising its jumbo program, offering 30-year fixed-rate jumbo mortgages with rates in the high 5% range. This is impressive considering the average jumbo rate is much higher. "We decided it was time to really go after that market," said Vijay Lala, product management executive for BOA.

More lenders are looking like they will join the party.

The average 30-year fixed-rate jumbo mortgage averaged 6.5% for the week ended March 27 -- the lowest since May 2007, according to HSH Associates, a publisher of consumer loan information. On Oct. 31, the average rate on a 30-year fixed-rate jumbo mortgage was 7.9%!

So more good news for the overall housing market. The housing market needs these Jumbo rates to continue to drop so more borrowers can qualify for these more expensive homes. There is a huge inventory of these homes on the market and when the rates drop like they have been it brings more people into the market, because more people will be able to afford them.

If you need a mortgage – Jumbo, conforming or FHA check out www.thebriteway.com.

Happy Monday!

G20 To Give World $1 Trillion!

2009-04-03T10:09:00.000-04:00

The G20 leaders agreed to a historic move today. They agreed to a $1 Trillion boost to the economy! That is a lot of money. I wonder what that would actually look like in $100 bills in person. That would be fun to play with wouldn’t it. What is the money for you say? It is for banks to use as they see fit…just kidding. It is for struggling economies and is intended to help improve the world economy and trade.

Even though this agreement is historic it is not as historic as it could have been. There were a number of things that could not be agreed upon and therefore were left out of the package. The leaders failed to agree upon a global fiscal stimulus package and the regulation that was to be enforced on banks has been watered down a little. The package was to include strict bank regulation including bonus packages and executive compensation, but an agreement could not be reached on this. I have a feeling that this will come up again in future talks.

The G20 also agreed that there needs to be strict regulation on Hedge Funds! You know – the funds that actually make money when stock prices go down. That’s not a recipe for disaster is it? Anyway – these funds will be seeing stricter regulation in the near future.

And for the last note for today – How many different outfits is Michelle Obama going to wear while she is in London? I have heard that everything she has worn while she has been over in London has sold out immediately. She is the one with the power!

Check out www.thebriteway.com for your mortgage needs. Right now is the best time to buy or refinance your home!

Have a happy Friday!

G20 Update – Financial Crisis, Protests, and the Queen

2009-04-02T10:56:00.000-04:00

The G20 dominated the news yesterday as they continued their meetings. There were thousands of protesters on the streets of London yesterday showing their displeasure with the state of the economy. Their aggravation was mostly directed at the banks – shocking!

All of the banks in the financial district were boarded up in the expectation of the protest except for the Royal Bank of Scotland. The demonstrators quickly realized the bank was vulnerable and smashed in the windows and raided the building.

On a lighter side the Obama’s met the queen! The reporters were all wondering how the Obama’s would greet her. Would they bow, curtsey or just shake hands? Is this what they are really worried about? Yes! Is seems that it is very important to greet the Queen properly. Well the suspense is over – they shook her hand and nodded (not a full bow, but a partial).

My favorite news of the meeting was the exchange of gifts. The Obama’s gave the Queen an I-POD filled with video of her last trip to the US. Pretty cool. The Queen? She gave the Obama’s an autographed picture of herself! Sweet! Just what I have always wanted. I would live to have seen the Obama’s faces. Lots of fake excitement there.

Anyway – one of the main decisions that was made during the summit was to increase the International Monetary Fund’s (IMF) resources by $500 Billion. This will triple the amount of money the IMF has available for lending raising it to $750 Billion. The money to fund this $500 Billion dollars will come from numerous countries with the US giving around $100 Billion.

President Obama had a number of meetings yesterday and they all seemed to go quite well. He has been given a passing grade by the press so far. More news to come tomorrow.

Check out www.reuters.com for more news on the G20.

Also check out www.thebriteway.com for your refinance and purchase needs.

Happy Wednesday everyone!

What is the G20?

2009-04-01T10:18:00.000-04:00

Leaders of the G20 are meeting in London today to discus how to fix the economic meltdown that is happening around the world. For the US and for many of these countries this is the biggest economic crisis since the 1930's. What are the origins of the G20? Sound like a new drink...

A Group of Twenty (G20):
The Group of Twenty(G20) first met in Berlin, Germany in December 1999. This group was created because of the Asian financial crisis of 1997-98, which exposed the need to bring emerging market nations into the core of global economic discussion and governance. The groups goal is to work together to head off major economic problems with the hopes of limiting global effects.

The 19 members of the G20 in alphabetic order are: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom and the United States of America.

Why is the group called the G20 if it only has 19 countries? Because the European Union is also a member and is represented by the rotating Council presidency and the European Central Bank. The finance ministers and central bank governors of the G20 meet annually.

The G20 represents 80% of the world's trade, 90% of the world's gross national product and 67% of the world's population. So there is a lot of power in these meetings and a lot of responsibility. The decisions made here can and will affect the entire world.

An update on what happenned in the meetings tomorrow.

Check out http://money.cnn.com/2009/04/01/news/international/Obama_G20/index.htm?postversion=2009040109 for what is going on now at the meetings.

Also check out www.thebriteway.com for your mortgage needs.

Mortgage Rates

2009-03-31T10:40:00.000-04:00

As a mortgage professional for the past 13 years I have heard customers, friends and family all say that they have read or heard that they can get this certain rate if they refinanced or purchased a home today based on what they are seeing in the news or in advertisements. How do you know what interest rate you can really get? In the newspaper? On the internet? On TV?

The only way to really know what rate you would qualify for is to put an application in with a mortgage broker or with a mortgage company. There are too many factors involved and too many different products used by lenders to determine what rate a customer will qualify for. So if you were to ask me: “What rate can I get right now” I will probably tell you that I would need to take an application to give you a good answer to that question. I can give you a rate that is out in the market, but it would be a guess without all of the pertinent information.

So you may hear that you can get a 4% 30 year fixed mortgage today. If you ask me if I can get that for you I would tell you yes it is possible, but you would have to be under 70% loan to value, over 740 credit score, under $417,000 loan amount, owner occupied, have 6 months reserves and you would have to pay 2% in discount and 1% in origination to qualify. These would be just some of the factors involved.

There are always a number of things that are possible, but neither you nor I will know what is realistic without taking a full application and really looking into your situation fully.

When you are thinking about refinancing or purchasing a home please take the time to put a full application through with a mortgage broker or with a mortgage company. Do not just take what is on the internet or in the Sunday paper! Good mortgage brokers and mortgage companies can give you much better information and guidance when it comes to refinancing or purchasing your home.

Check out www.thebriteway.com for all of your mortgage needs. Give us a call.

Happy Tuesday!

New Home Sales Up – Surprisingly!

2009-03-30T16:42:00.000-04:00

In February new home sales increased, the Department of Commerce reported. New home sales increase at an annualized rate of 337,000. Meaning that if sales continued at the pace set in February the US would see 337,000 more new homes sold in 2009 than we did in 2008.

Why is this such a big deal? Because analysts expected new home sales to be lower in 2009 than they were in 2008. This is huge. This means that some of the new legislation that the government has been passing is working. Lower rates and more incentives to purchase now have started to take hold.

What is the bad news? There always has to be some bad news right. Well the bad new is that the median home prices on a new home fell to $200,900 in February. That is down 18.1% for the year. I guess this might not be bad news to the people who are purchasing these homes.

So the moral to the story is that if you are looking to buy a home, now might be your best opportunity. With home prices low, rates low and incentives high you might not find a better time to buy. Take some time and look into it. If you are considering it then you have to start doing the research now. Get out there and find something for yourself. You may kick yourself later if you wait.

If you need help with a mortgage check out www.thebriteway.com. We can help you find the best mortgage for your situation.

Have a great day!!

Some Positive Signs for the Housing Market

2009-03-25T12:27:00.000-04:00

The FED is planning on buying up to $300 billion of long-term government bonds and an additional $750 billion in mortgage backed securities guaranteed by Freddie Mac and Fannie Mae. This will help ease the credit crunch that has been going on. Some of this money is coming from the $750 billion rescue package passed last year.

The announcement of these purchases had a direct impact on mortgage rates. Rates have dropped about .4% over the past two days. Mortgage applications have been at their highest levels of the year over the past two weeks and with rates dropping again they should be even higher this week. These lower rates will allow more people to qualify for refinance loans and purchase loans which will ultimately help the economy.

This is not a fix all, but it is part of the overall plan to turn the housing market and the economy around. The government has implemented or put into place guidelines for:

1. A first time homebuyer tax credit of $8,000
2. Mortgage Refinances at 105% loan to value
3. Loan Modifications for all homeowners who qualify, not just people who are behind on their mortgage
4. Lowered the Federal Funds rate to 0%
5. Purchased or is purchasing $750 Billion worth of mortgage backed securities

I am sure they are not done yet, but this is definitely a good start. These guidelines will take a little while to trickle through the system, but once they have been implemented and completed the housing market should show sign of a recovery.

If you would like to refinance or purchase a home check out www.thebriteway.com and give us a call.

Update on Obama's Housing Fix

2009-03-25T12:25:00.000-04:00

This is an update to my first article. On March 4th the government passed a housing bill aimed at reducing the number of foreclosures and helping homeowners reduce their monthly payments.

Banks and servicers are still updating their systems to implement the changes. These companies are also waiting on clarification for some parts of the bill. It may take a few more weeks for these companies to be ready to start taking applications for refinances and modifications. Just be patient.

In the meantime the government has created a website that you can go to : http://makinghomeaffordable.gov/ . This website can help you figure out if you will qualify for the new programs that are being put into place.

Just because the banks are not completely ready to take on this program does not mean that you can’t call them. Many of the banks are taking down names and numbers of the customers that call them. Then once they have the program in place they will return these customer’s calls.

The good news is that the four largest servicers in the country have agreed to participate in the program – Wells Fargo, CitiBank, JP Morgan Chase and Bank of America. This is huge! This means that most of the other banks will likely follow their lead. So help for you could be on the way!

Read an update on CNN Money at - http://money.cnn.com/2009/03/19/news/economy/Obama_foreclosure_plan/index.htm?postversion=2009031909

Check out details of the new program at http://www.treas.gov/initiatives/eesa/

If you need help with a refinance or a purchase check out www.thebriteway.com and give us a call.

How Much Will a $200,000 House Cost?

2009-03-25T12:22:00.000-04:00

If you are looking at buying a home and wondering what the payment will be there are some websites out there that can help you.

Here are a couple:
www.bankrate.com/brm/mortgage-calculator.asp www.mortgagecalculator.org/

Just plug in the figures and out pops your monthly payment. Just remember that you need to figure in the cost of mortgage insurance, homeowner’s insurance, home owner association dues and taxes. These four things can make your payment much higher that you think.

Lets take and average $200,000 house and figure out what the down payment and the monthly payment will be. We are going to use a 96.5% loan to value FHA mortgage – fixed 30 year - to purchase this home.

We have negotiated into our contract that the seller will pay all of the closing costs.

Down Payment = $200,000 * 3.5% = $7,000

Base Loan amount = $200,000 * 96.5% = $193,000
Up Front Mortgage Insurance = $193,000 * 1.75% = $3,377.50
Total Loan Amount = $196,377.50 – with FHA loans the up front mortgage insurance will be added to the base loan amount.

Monthly Payment: Principle and Interest at 5.5% = $1,115 Monthly Mortgage Insurance = $193,000*.55% = $1,061.50/12 = $88.45
Taxes = $3,000/12 = $250.00 Insurance = $1,200/12 = $100.00 Total Payment = $1,553.45

So your total payment on an average $200,000 home will be $1,553.45.

This is something that you want to know before you start looking at homes. For more help with this visit www.thebriteway.com and give us a call.

Increase Your Tax Return

2009-03-25T12:18:00.000-04:00

If you purchased a home in 2008 and it was your first home and your primary residence then you may be able to increase your refund by as much as $7,500!

If that home you purchased in 2008 was not your first home, but was the first home your owned in the past three years and was your primary residence then you could qualify for $7,500 off your taxes too.

Here is how it works: http://turbotax.intuit.com/support/kb/tax-content/tax-tips/6360.html

1. If you made $75,000 or less as an individual and $150,000 or less as a married couple in 2008 then you can claim 10% of the purchase price of your home or $7,500 whichever is less.

2. So you purchased a $200,000 home in 2008 and you meet the income requirement. You can claim 10% of the purchase price of the home which is $20,000 or $7,500 – whichever is less. So you can claim $7,500.

3. So lets say in 2008 your tax situation is:

Tax Liability = $6,000
Taxes Withheld= -$5,000
Tax Credit= -$7,500
Tax Refund= $6,500

4. The above example shows that even if you only paid $5,000 in taxes during 2008 you can still get back $6,500! So you can have the IRS give you money this year. Go get it!

5. If you do decide to tax this tax refund – it is a loan. You have to pay back this $7,500 over the next 15 years – interest free. Your tax liability will be increased every year by $500. This is a great loan, but still a loan – not free money.

When you do your taxes you will put this credit on line 69 of your form 1040. You will need to complete form 5405 as well. Consult your accountant before completing your taxes!!

The 2009 first time homebuyer tax credit is even better so if you want to look into buying a home check out www.thebriteway.com.

You May be able to Afford a Home Right Now

2009-03-25T12:16:00.000-04:00

Thinking about buying a home? Right now is a great time because of favorable buyer's market conditions both with home values and rates.

When putting an offer in you want to make sure you are getting the best deal you possibly can. Most people are looking to put as little money down as they can and keep their closing costs to a minimum. How do you do that?

If you are going to use an FHA loan for your financing you can get most if not all of your closing costs paid for by the seller. FHA allows 6% seller concessions. This means that you can write into your contract that the seller is to pay up to 6% of your closing costs.

Now you may think that there is no way that you would need 6% for your closing costs, but they will add up and having 6% to play with is very helpful.

In today’s market it is very common for the seller to pay up to 6% so if your goal is to bring as little money as possible to the table this will help. If you do an FHA loan and you get all of your closing costs paid for then you will only have to bring 3.5% of the sales price of your home to the close.

This means that if you purchased a $200,000 house you would have to bring $7,000 to the close and that is all! Very nice! So if you thought that you could not afford to buy a home right now you may want to rethink this.

Check out http://www.jillshotproperties.com/ if you are looking at buying a home in the Tampa – Lakeland area and need a realtor.

Check out http://www.thebriteway.com/ if you need help with a mortgage – refi or purchase.

Check out this page of HUD’s website - http://www.hud.gov/buying/index.cfm for detailed info regarding purchasing a home.

Great Info in here!