-
News You Can Use
How many people do you think added buying a new home to their 2011 resolutions?Who doesn’t love a sale? That’s exactly what’s going on with our housing market right now. Economists speculate we may be near the bottom of the market – and with it the lowest home prices. If you’ve been eyeing your dream home for awhile, now might be just the time to scoop it up.
Once the perfect home is found, the next important step is arranging the mortgage. The good news – and somewhat contradictory to reports – is that money IS being lent…everyday…to all sorts of buyers.
When I started lending, ‘full documentation’ was the only way to get a loan. Then the pendulum swung to the other extreme – where people could essentially ‘sign and drive’ to buy a home. Over the past few years, the lending guideline pendulum has swung back to ‘old school’. ‘Old school’ meaning: borrowers need need to meet a minimum credit score requirement, have a stable job, money in the bank and demonstrate the ability to repay the loan – not too wild of a concept. Many loan types are available to fit long and short term goals.
If you or someone you know, is interested in buying a home, contact me to evaluate options and get preapproved. A preapproval is a review of income, assets and credit history that allows a buyer to evaluate the best available options, help narrow a home search and give buying power when it’s time to make an offer. Here’s to a wonderful 2011!________________________________________________________________
Rebecca Madej is a Charlotte mortgage banker who excels at helping clients choose the appropriate mortgage strategy and enjoys demystifying the financial process on her blog at rebeccamadej.com. She publishes a weekly “Mortgage Matters” e-newsletter and can be reached at rebeccam@cunninghammortgage.com or 704.488.8883. -
Many Charlotte families lost their homes because unscrupulous lenders placed them into financial products called “Toxic Mortgages” which contributed to the financial meltdown. These mortgages had an artificially low teaser rate or negative amortization Furthermore, many buyers went on-line and obtained mortgages without professional guidance.
Prior to making the decision to buy a home, the important questions are: ‘what are your goals and what is your long-term financial strategy’? An example of this is determining if the property in question is a home to hold for the long haul, pay off and enjoy through retirement or is it a home that one is living in to accommodate a current lifestyle?
The real key is customer service. If you are buying or refinancing a home, you need an advocate – an experienced professional- during the mortgage process, one who is willing to work for you. There is more to managing one’s mortgage than what meets the eye. You deserve to know what will serve you in the short- and long-term.
Furthermore, choosing a local lender for your mortgage brings increased accountability and accessibility. Charlotte is my home and I often run into clients around town. My dedication to them surpasses any corporate customer service mission statement. My promise to give sound mortgage advice and exemplary customer service is a commitment made to a neighbor. Please call or email me to determine your best mortgage strategy. Even better, stop by the office. I have been a mortgage professional for nine years and believe in offering experienced and personalized service to clients seeking a mortgage loan in the Charlotte area.
Enjoy this info? Would you like to receive Monday Money Matters – a weekly newsletter with useful mortgage and real estate information? Subscribe here or visit www.RebeccaMadej.com to learn more. -
Charlotte area buyers looking for a home mortgage on a Fannie Mae foreclosure now have a local resource for the specialized loans only available on these homes. Pairing a foreclosure up with a HomePath mortgage means buyers can purchase a home at a great price, with mortgage perks to boot.A HomePath mortgage provides:
- 30 year and 15 year fixed mortgages
- Max loan to value ratios up to 95% on a primary home and 90% on a second/investment property
Eligible properties:- Fannie Mae foreclosures that are 1 Unit Single Family detached
- PUD/Townhomes
- Fannie Mae approved condominiums
As an added bonus, mortgage insurance and an appraisal aren’t required – lowering the borrower’s payment and closing costs. Depending on a client’s needs, HomePath or FHA will likely be the best choice. If you or someone you know wants a side-by-side comparison, give me a shout and I’d happily help evaluate the available mortgage strategies.
Enjoy this info? Would you like to receive Monday Money Matters – a weekly newsletter with useful mortgage and real estate informtion? Subscribe here or visit www.RebeccaMadej.com to learn more. -
News You Can Use
Chatter about home buyer incentives has sometimes sounded like an infomercial: “Home affordability near all time highs.” “Mortgage rates near all time lows.”
“But wait…there’s more”
Even though the Federal tax credit has expired, did you know that first time home buyers may be eligible for an annual tax credit up to $2000. The Mortgage Credit Certificate allows a homeowner to claim a tax credit…not a deduction… and it can prove very profitable since it may be claimed for the life of the loan.What does that mean? That a buyer with a MCC can potentially save more than they would with any ole $8000 tax credit.If you are buying a home, a MCC can give you long term savings so it’s worth checking out. If you are a Realtor, knowing about the MCC will give you market edge. You can demonstrate the benefits to your buyers and include it in your marketing to enhance interest in your listings. Have questions? Ask me.Featured Listing
Exceptional one level home in a quiet cul-de-sac.
Sales Price: $199,000
MLS: 919499New homeowners will enjoy the open floorplan and wonderful decor. The screened porch and sunroom overlook a private, fenced yard. The 0.37 acre homesite is complete with an irrigation system. In addition to a fabulous home, the community boasts a pool overlooking the lake and awesome lakeside park.
Have You Heard?
Do you know anyone that is active military personnel? Do they know that they (along with their families) can visit over 600 museums nationwide this summer for free? In an effort to show appreciation to those serving our nation, Blue Star Museums is offering this perk between Memorial Day and Labor Day. Locally, the Levine Museum for the New South and the Mint Museum of Art are participating.
Enjoy this info? Would you like to receive Monday Money Matters in your inbox? Subscribe here!
-
News You Can Use
To get the lowest mortgage payment, focus on the loan’s rate – right? Yes and no. Borrowers want and deserve to obtain a loan that meets their short and long term goals that has a competitive rate. But there’s more than just the loan’s rate to think about. If that loan has mortgage insurance, that deserves attention as well.
When it comes to MI, there are three things to take into account: which company is providing coverage, can the lender offer below market MI rates, and how the MI affects qualification amounts.
Consider this: the published rates for the country’s leading MI companies range from .78 to .94% for a borrower with a 700+ credit score purchasing a home with a 95% Loan to Value. If that loan is $200,000 those rates translate to $130-157/mo – a difference of over $300/yr. See how the MI company impacts the payment?
We’re fortunate to have relationships with several companies which allow us to offer preferred MI pricing to our clients. Using this same example, if this borrower was my client their MI rate could be as low as .631% – a monthly savings of up to $52/mo. That adds up to over $600/yr and $6000+ over the next ten years. Now we’re talking some serious bucks.
Another thing to think about is how this influences the borrower’s qualification amount. A $50 monthly savings translates into a $9000 increase in their qualification limit. Imagine what that would do to their buying power and property selection.
The take away here is mortgage insurance is more than just an afterthought. It deserves proper attention, knowledge and advice to maximize its’ use and minimize its’ cost.
Featured Loan Program
Mortgage Credit Certificate
Cunningham & Company along with North Carolina Housing Finance Agency offers the Mortgage Credit Certificate program to help qualified homebuyers obtain a federal tax credit.
· Must meet income requirements, sales price, and first-time home buyer guidelines· MCC can be used with almost any type of mortgage, including adjustable rate mortgages· An MCC can be used to improve the qualifying ratios of your borrowers, increase their disposable income, and provides a true federal tax benefit· Eligible buyers can now claim 30% of their mortgage interest (up to $2000)Have You Heard?
Many people run from their fears and it has negative consequences on their business. The difference between failure and success is understanding those fears, overcoming them, and profiting from them. Think about it…if you’re part of the 1% that doesn’t run from your fear, you’ll be part of the 1% that significantly grows your business this year.
Join us June 3rd for the Fearless Living Tour with John Alexandrov, Dave Jenks, and Laurie Hathorn. Looking forward to seeing YOU there!
Enjoy this info? Would you like to receive Monday Money Matters in your inbox? Subscribe here!
-
News You Can Use
Home Buyer Tax Credit: The Final Countdown. Sounds like the last movie in an action series doesn’t it?For those of us involved in the housing industry, a tax credit influenced market has been action packed. The first edition of the tax credit spurred sales and then its extension has given housing an extra boost. The most recent numbers showed a 27% boost in March to new construction sales. But what’s next?
We know foreclosures will put pressure on prices, keeping them low for some time, but the silver lining is homes will be affordable for a greater number of buyers. We also know that with the Fed’s completion of their MBS purchase program, rates are likely to rise but haven’t yet skyrocketed as previously feared. So what’s next?
If I had a crystal ball now would be the time to use it. What I can say is that here in my corner of the world interest in buying a home and putting one under contract is on the upswing and it would be nice for the momentum continue. It’s to early to say what the market will be after the tax credit expiration on Friday but in the meantime, we’ll just have to wait and see.
Featured Loan Program
FHA
Cunningham & Company offers FHA financing which allows for easier qualification, lower down payment and reduced mortgage insurance.
· Available for 1 to 4 unit properties, as well as condominiums and manufactured homes· Max loan limit for Charlotte MSA is $303,750 for a single family home· Fixed rates and ARMs available· Down payments can be as low as 3.5%· Gifts for down payments and closing costs are allowed· Will allow a home purchase 2 years after a bankruptcy and 3 years after a foreclosureHave You Heard?
Have a client that is moving to the Charlotte area? Or just know someone that is coming to visit? Charlotte’s Got a Lot is a great resource for anyone relocating here needing to get acquainted with the Queen City. The “Calendar of Events” is beneficial to anyone interested in getting involved in the community. -
News You Can Use
Wondering what the latest news is on the USDA and FHA fronts? Details are still being worked out but here’s a summary of the latest developments:
Regarding USDA: “Congress is considering alternatives to cover the cost of the program going forward. They are discussing raising the guarantee fee in two ways. They are: 1) raise the upfront fee from 2% to 3.5% or 2) retain the upfront fee at 2% and establish an annual fee of .5%. It will probably be a week or two before the USDA funding issue is resolved.”Either way, having access to 100% financing can be a smart strategy for some buyers. If they find a home in an eligible area and are conscious of the loan’s associated fees, it’s a great deal.Regarding FHA’s seller concessions: “FHA has sent the Notice soliciting public comments on lower allowable seller sales concessions (from 6% to 3%) to OMB for review. This means the Notice will probably be published for comment in 30-60 days.” Accordingly, implementation will likely be delayed until late Summer (August-September) vs the original target date of June.Until this is sorted out, the additional 3% that is allowed can make a huge difference in a buyer’s down payment plan. This is a great marketing tool for potential sellers.Have questions about either program? Give me a shout and have a great week!Featured Loan Program
$100 Down FHA Repo Program
It’s now possible for buyers to purchase a HUD repo for $100!- Owner Occupied only
- FHA financing is used in conjunction with this program
- Available for 1 to 4 unit properties, as well as condominiums and manufactured homes
- Max loan limit for Charlotte MSA is $303,750 for a single family home
Have You Heard?Charlotte Magazine’s Best of the Best is available to the public now. From the Queen City’s best cooking classes to the best sketch comedy group, you will have a lot of fun browsing the broad spectrum of categories and even more fun planning your outings to test for yourself. -
News You Can Use
Realtors: what happens when your listing gets the feedback of ‘my buyers like it, it’s number two on their list?’ A great question to ask is, ‘what can we do to be number one?’What if you’re a buyer and you wanted your payment/rate to be lower? Maybe you’ve started a new job and you have great earning potential.One possible incentive to consider offering or asking for is a buy down. They can come in different forms but one often used is the 2/1 buy down.
Here’s how it works: For round numbers say the current market rate is 5.25%. The monthly payment is $1104.40 for a $200,000 mortgage using a 30 year amortization.With a 2/1 buy down the rate for the first year would be 3.25% ($870.41/mo) and the second year, 4.25% (983.87/mo). Years 3-30 would then be 5.25%.How the seller would finance it is by paying 12 months’ difference between the first year’s payment at 3.25% and the full payment at 5.25% and the second year’s payment at 4.25% and the full payment at 5.25%. Looks like this:First year:$1104.40 (5.25%) – $870.41 (3.25%) = $233.99 x 12 = $2807.88Second year:$1104.40 (5.25%) – $983.87 (4.25%) = $120.53 x 12 = $1446.36Total from the seller / savings to the borrower: $4254.24If the borrower’s putting less than 10% down, seller concessions would be capped at 3% ($6322.50 for a $210,750 sales price) so an additional $2068 could go toward the buyer’s closing costs as well.
Remember folks, plenty of options out there to help a buyer and seller find a mutually beneficial solution … just let me know how I can help along the way!
Featured Loan Program
Mortgage Credit Certificate
Cunningham & Company along with North Carolina Housing Finance Agency offers the Mortgage Credit Certificate program to help qualified homebuyers obtain a federal tax credit.
· Must meet income requirements, sales price, and first-time home buyer guidelines
· MCC can be used with almost any type of mortgage, including adjustable rate mortgages
· An MCC can be used to improve the qualifying ratios of your borrowers, increase their disposable income, and provides a true federal tax benefit
· Eligible buyers can now claim 30% of their mortgage interest (up to $2000)Have You Heard?
Ever “Google’d” yourself to see what you can find? Another site that’s getting attention lately is Spokeo. This one is a bit different because it pulls information from all over – social network sites, white pages, and other search engines – to give as much information about an individual as possible. Feedback seems to be that the information delivered can be spot on or way off. Depending on how private you like your info to be, might want look up yourself and if needed, opt out so your info does not appear. Happy searching!
-
News You Can Use
Who says there are limited lending options these days? Sure, mortgage lending guidelines have tightened but that was a reasonable response to loose lending which resulted in high levels of fraud and loan default. That doesn’t mean all of the exciting programs are gone.
Just this past Friday North Carolina Housing Finance Agency announced they are offering a 3.99% fixed rate program for buyers of eligible NCHFA owned foreclosures. Holy cow. Potential buyers can browse these homes to score an incredible deal. NCHFA is no stranger to offering incredible options to home buyers. In addition to this REO program, their offers range from $8000 down payment assistance to an additional tax credit.
People often wonder why it is important to be fully preapproved before searching for their next home. When a client has the opportunity to look at their “big picture,” they benefit in several ways. By examining all their variables, clients are presented with program options – some they might not have even heard of. As their mortgage adviser, we talk about what they can really afford, weigh the pros/cons of different programs and evaluate what will be a short and long-term smart choice. As a home buyer, having an advocate in your corner before you begin the home search process can really pay off. There are just too many opportunities out there to leave a great one on the table.
Featured Loan Program
Mortgage Credit Certificate
Cunningham & Company along with North Carolina Housing Finance Agency offers the Mortgage Credit Certificate program to help qualified homebuyers obtain a federal tax credit.· Must meet income requirements, sales price, and first-time home buyer guidelines· MCC can be used with almost any type of mortgage, including adjustable rate mortgages.· Eligible buyers can claim 20% of their mortgage interest (up to $2000)Have You Heard?
Lá Fhéile Pádraig Sona Duit! You’ll be hearing that a lot if you venture into town on Saturday the 13th for the 14th Annual St. Patrick’s Day Parade and Charlotte Goes Green Festival. Afterward, be sure to check out the newly restored Ri Ra Irish Pub. After being damaged by a fire last May, they are back in the game and ready for the crowds.Enjoy this info? Would you like to receive Monday Money Matters in your inbox? Subscribe here!
-
News You Can Use
“What are rates going to do?” That’s a question I hear as often as weathermen are asked for their predictions. Just like meteorologists try to predict the next snowmageddon, I read the economic tea leaves and get a sense of where rates are heading. Sometimes there are surprises like 2009’s Black Wednesday – but for the most part, lenders have a good idea of what’s on the horizon. Let’s start with a quick lesson in mortgage rates:Rates are determined largely on the trading of Mortgage Backed Securities (MBS). In a ‘normal’ market and in simplest terms, bad economic data helps rates. The cause of these record low rates is that the Federal Reserve entered the MBS market en force in November 2008. This sent 30 year rates hurdling downward towards 5% – sometimes even below it. And ARM rates, fuhgeddaboudit it – in the 3s? Wow.
Alas, all good things must come to an end. The Fed announced a few weeks back that they will wrap up their MBS purchase program at the end of the month. After March 31st, we’re on our own folks. We’ll return to the normal MBS influencers – domestic factors – economic, social political indicators – and yes, even global news weighs in. Many estimate that once the market returns to normal (i.e. unsupported by the Fed), rates will rise .75-1% from where they are now.
So when people ask ‘what are rates going to do in three to six months from now?’ my response is usually, ‘I wish I had a magic eight ball’ or ‘If I knew I’d be managing a hedge fund’. But for 2010 I know what mortgage rates will do, they will go up. What I do know is even when that does happen, homes will still be very affordable as will rates and the opportunities for buyers are there for the taking.
Featured Loan Program
Good Neighbor Next Door
This specialized FHA program allows teachers and first responders to purchase a home with a substantial incentive in the form of a discount of 50% off the list price of the home.- Eligible borrowers are law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians
- Borrower must commit to live in the home for 36 months
- Eligible Single Family homes are located in designated revitalization areas
Have You Heard?
Did you know Charlotte has a new local live show featuring entertainment & information on health, food, fashion, finance, pets, fitness & more? Charlotte Today airs on WCNC-TV weekdays at 11am featuring Colleen Odegaard as its vivacious host. If you can’t catch it live, it is certainly a show you should add to your TiVo to-do list!Enjoy this info? Would you like to receive Monday Money Matters in your inbox? Subscribe here!
