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News You Can Use
Nine years in mortgage lending has allowed me to serve many wonderful and smart people. In the last couple years a trend started emerging with my married clients. Increasingly my primary contact for families has been the wife/mother. I call these clients my ‘CFO moms’ because they are money savvy and apply business principles when managing their finances.
Today I was on WCNC’s Charlotte Today talking about the Financial Facts Smart Moms Know:
- Have a trusted board of directors. Financial solutions are not one size fits all so it’s prudent to have expert advice on areas such as investments, taxes, banking and insurance. Use their knowledge to maximize your efforts and make wise choices.
- Keep your credit in good standing. A solid credit score will not only benefit you when applying for a loan but when engaging other providers such as insurance and utility companies. They use it to evaluate your repayment behavior which may affect the cost of doing business with them. Check your credit annually at AnnualCreditReport.com and resolve any issues as soon as possible to limit their impact.
- Have cash reserves. Most families don’t plan for a major repair or other significant expense but they still happen. By having three to six months’ reserves set aside, the effects of unexpected expenses can be minimized.
- Leverage what you already have. Use a Flexible Spending Account to help get more bang for your buck on childcare or healthcare expenses. Call your mortgage company to compare your balance to your home’s value. If you have at least 20 percent equity, you may be able to remove the monthly mortgage insurance to increase your monthly savings.
- Money saved is money earned. Use online tools like Mint.com to evaluate your budget and spending habits. Finding hidden savings can allow you to spend your money more efficiently - towards long term goals or bulking up cash reserves. Find ways to save as you spend too. By being a deal hound or playing the coupon game, the savings can really add up!
My passion is for all my clients to make smart choices and feel empowered when doing so.
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-K through 12th grade teachers and firefighters/EMTs
- Borrower must commit to live in the home for 36 months
- Eligible Single Family homes are located in designated revitalization areas
Have You Heard?
Have you heard that RelocateAmerica.com included Charlotte in its list of the best places to live in the U.S.? I’m biased but I can understand why they picked the Queen City as a winner. The editors based their results on interviews with local leaders and residents’ surveys. Also weighing in were economic, environmental, education, crime, employment and housing data.
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News You Can Use
What a beautiful weekend we had! While running this weekend, my path was brightened by blooming trees and daffodils. Spring has arrived and not a moment too soon. At some point each Winter I wonder how long the cold grayness will last – yet each year Spring faithfully arrives. I’d like to see an improved economy do the same. I see the green shoots, do you?
Last week was Cunningham & Company’s annual meeting – a day packed with valuable info. One of our speakers was Brian Chappelle who is a partner of Potomac Partners – a consulting firm specializing in mortgage finance. He provided a thoughtful summary of the previous year and a fair forecast of the one to come. One surprise he had for us was that USDA expects appropriated funds to arrive so they can carry on business as usual. Quite a different outlook than the one indicated by the bulletin issued the week prior. I shall keep you posted on how this develops but it appears USDA program availability is certainly not as dire as earlier believed.
Other highlights were:
- Rates may stay close to current levels once the Fed wraps up their MBS purchase program
- Defaults and foreclosures are peaking, this sector should slowly improve
- HUD, Fannie and Freddie are very aware how important the housing market is to our greater economic recovery. They are committed to providing lending that helps the housing market, not stifle it.While in Greensboro we also celebrated Cunningham & Company’s 20th Anniversary. We’ve seen a variety of housing markets with the inevitable program and guideline changes. Through it all we exhibit the strength, integrity and expertise required to provide proven solutions for our home owners. My big take away from this week? Changes will come but in them opportunities appear.
As a final note I’d like to thank you for the opportunities and referrals you’ve given me. At our meeting I was recognized as a repeat President’s Circle winner and the third top producer in the company. It’s a blessing that my work brings me so much joy and satisfaction – I appreciate you for making that possible.
Featured 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?
Big news this week: Twelve Charlotte libraries closing. Sigh. Our branch is among them. My daughter devours the stacks of books I bring home to feed her avid reading habit that equals mine. What will we do? We can (and will) go to other branches but the news is certainly not ideal. On a positive note, it is heartwarming to see the outpouring of support by Mecklenburg residents. It is with much hope that some closings can be staved off and a better long term solution found. Want to help? Donate Here
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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!
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Even though November saw a dip in sales contracts, January’s activity is good - buyers are out and closings are happening regularly. Mortgage payments are being lowered through refinances. Businesses are using the new year as a fresh start - gearing up for a successful year chock full of ambitious goals and positioning themselves for growth. How are you starting the year off right? I’d love to hear.
In mortgage news, the new GFE and HUD disclosures are in full effect. The industry and borrowers are becoming familiar with the changes and seeking understanding of the GFE. The new GFE has its good points and bad points.
The good news: gone are the days of home buyers getting to the closing table only to discover hundreds if not thousands more in closing costs. The new GFE now holds individual loan officers financially responsible for changes in costs.
The drawback of the new GFE is it doesn’t tell home buyers how much the home will cost every month and their total due at closing. Unbelievable but true. To make up for this obvious blunder, we’ve developed a simple mortgage worksheet. It’s much easier to understand than the new GFE and clearly spells out closing costs, escrows and even shows the monthly payment. Now that’s what I call serving the client in ‘good faith.’
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?
Been to a Bobcats game recently? Tuesday night home games offer $10 tickets, $3 beers, and $2 hotdogs… Not a bad excuse to watch some basketball and support your local NBA franchise!Enjoy this info? Would you like to receive Monday Money Matters in your inbox? Subscribe here!
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Happy 2010! Well, another year is among us as well as a fresh start for resolutions. For many, buying a new home or refinancing is among them. The Department of Housing and Urban Development is hoping to help customers have an easier experience by enforcing a new set of rules. Included in the new rules is a standardized Good Faith Estimate with the goal of allowing homeowners clearer comparisons of their options among mortgage lenders. In addition, settlement statements will mirror the GFEs to facilitate comparison of the original estimate to final cost. In November, HUD declared that there would be a four month “grace period” allowing lenders to ease into the new guidelines and make certain everyone is catching on and following the rules appropriately.I’m not saying the transition will be a walk in the park, but Cunningham & Company is dedicated to staying compliant and efficient. We have the customer’s best interest in mind and will do what it takes to stay ahead of the game.
Speaking of helping customers effectively, my resolution for the New Year is to continue offering superb service to my clients. No matter what resolutions you have, please remember that I am here for you, ready and able to assist you with all of your mortgage needs.Make it a great year and let me know how I can be of service!!!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?
Interested in seeing original artworks from Picasso or Andy Warhol right here in Charlotte? Located at 420 S. Tryon Street, the Bechtler Museum of Modern Art just opened this past weekend and is the only museum dedicated to the exhibition of mid-20th-century modern art in the southeastern United States. If your New Year’s resolution is to experience more art, this is an excellent way to begin!
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So here we are – November – and what shall be the fate of the First Time Homebuyer Credit? We’re not sure but it definitely has been the talk of the Fall. Senate Banking Committee Chairman Chris Dodd, D-Conn says it is as good as ‘done‘ but its passage and content remains uncertain. While we wait for the final word it looks like this month will be quite busy as all type of buyers keep buying and other clients are finding smart mortgage solutions through a refinance.
On the mortgage side of things, the Mortgage Bankers Association has convened a panel to advise on how to keep FHA a viable part of our market. At over 30% of national volume, I’d certainly say it has significant impact. FHA loans are one of my favorite loan programs because they are a solid solution for many homebuyers’ mortgage needs. If you have a question on them, just ask me – I’ve likely experienced the situation you’re facing.
Speaking of what has significant national impact, let’s talk a minute about Facebook. Maybe you’re a social media fan but like to keep your updates and info contained within a small circle. If you take quizzes or play games, consider how the third party apps on social networking sites work. Your profile might not be as private as you think.
We’ll see economic reports this week on manufacturing, employment and another FOMC meeting. The first week of the month is a busy one for market influencing reports so rate swings are possible. Have questions? I’m here for you – so give me a shout if I can help.
Featured Loan Program
Good Neighbor Next Door
Who doesn’t love a 50% off sale? What about on a house?
- Teachers, policemen/women, EMTs and firemen/women can purchase a HUD foreclosed home at 50% off the list price of the home.
- Loan is set up as a 50% loan, remaining 50% is held as a ‘silent second’ that is forgiven after 3 yrs of occupancy
- Eligible Single Family homes are located in designated revitalization areas
Have You Heard?
Have you heard we have our own deal a day site for Charlotte? Groupon.com is a new entry into Charlotte but the deals have already been impressive. Groupon focuses on local businesses and as they put it ‘each day we feature something cool to do at an unbeatable price.’ Give it a try.
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