Interest Rates Remain Exceptionally Low
Posted on | June 20, 2010 | No Comments
Though applications for new mortgages dropped off in May, interest rates continue to be at some of the lowest levels in history. In the good old days, people would be lining up to refinance their current loans at the lower rates. However, things are really different today. First, many who could use the lower rates cannot qualify due to loss of income, job change or ruined credit. They have managed to continue to pay their mortgage but may have let other less important bills lapse or just have some late pays that have really hurt them.
Second, since rates have been low for several years, it doesn’t make sense to refinance a house if you start out with a pretty good rate. You will need to at least get a point better; 6% current rate and 5% for new mortgage, as well as be able to pay all the costs within the next 24 to 36 months. No need to refinance if you plan on moving in the next few years. Just think through the process and, if you believe you can qualify, give me a call.
An Interested Observer Points Out The Good Things About Auto Insurance
Posted on | June 17, 2010 | No Comments
When you are in the comfort of your home or office you can sort out affordable auto insurance very easily. You could even change insurers at will if you want to, or you could just renew your old deal. It works perfectly either way you look at it.Paying your car insurance premiums online is as easy as anything else you ever did over the internet. Fill in your credit card number in the space provided for the same in your profile on the car insurer’s website. Once you have that done, the rest is easy.
If you are a women trying to get online car insurance then its simple. If you are looking for a new auto insurance company to get cheap womens car insurance, you can search arbitrarily and pray that the results you get are what you are looking for. If you happen to already have insurance with a firm you trust, just go to their website.
You may worry about the verification of your personal data when you are shopping online for your car insurance, but the insurance firm is definitely not worrying so much. They have contact lines listed on their website that you can call if you must speak with someone. You can have your details faxed over for verification.Do you want your kids on your auto car insurance? Do you want coverage for a friend? Is there a personal injury clause? These are details you will want to confirm before you take out a car insurance policy. Online, all you need to do is enter those details in and let the system work a quote out for you. It even takes seconds.
Before signing up for online car insurance online, you may want to take a look at the rates that are offered by various car insurance outfits. That mean you will need to take a look at the various websites out there. But since this can be done within minutes, you can be through with your decision in no time at all.There is hardly such a thing as cheap car insurance. The way insurance works, the amount of premium you pay determines how much coverage you get on your insurance. So if you are looking for something cheap, you may have to deal with heavy deductibles.
The rates offered by online car insurance are easy to peruse and decide if you like them or not. The best part is that you don’t have some insurance agent breathing down your neck while you are it to make a decision already. As such, your decisions are more your choice than choices made under duress.Driving a car without insurance anywhere in the anywhere United States is illegal, even if the penalties vary across the country. Rather than leave yourself open to all kinds of litigation, you might as well get you some cheap car insurance. It better than nothing, and you know it.
Protect Yourself with Insurance
Posted on | June 14, 2010 | No Comments
We all know you need homeowners insurance to protect your home but what many people don’t think about is what could happen to your home if you pass away. I always warn new homeowners that they will receive a bunch of notices in regard to insuring their home in case of their death. I also let them know that these policies are called “step-down” policies and the payout steps down to what is owed on the home each month. This could end up being a very expensive way to insure your home in case you die.
Before doing anything you should sit down with a life insurance specialist (someone who only sells life insurance) and talk to them about ways to insure against your passing. You will find out that these guys know a thing or two that can really help you plan for your future and protect your family and home just in case something unexpected happens to you or your spouse.
No one likes to talk about life insurance, wills or funeral pre-payment but these are things you need to consider when doing your financial planning for your family. If you don’t, what could end up happening is a free for all where no one knows what’s going on and everyone left behind has to pay or sell what’s left. This is the last thing you would want for your family to go through.
Another Chance for a Refinance
Posted on | June 9, 2010 | No Comments
If you have an interest rate of over 6%, you may want to consider a refinance of your loan. You will also need to consider your blended rate if you have a first and a second as this could be a lot higher than what you can currently get. However, before you go hog wild and do a mortgage refi, ask your self a couple of very important questions first.
- Will I stay in this house long enough to recoup the closing costs of a refinance? This is traditionally 4 to 5 years.
- How much will this actually cost me to do a refinance and am I willing to pay that?
Most people just see the interest rate as lower and assume (you know what they say about assumptions…) it’s a better deal. However, that is just not true in many cases and as much as the regulators have tried to protect the consumer, it is still up to you to make the final decision. And making that decision is not always an easy one. This is just one reason to work with someone who can fully explain your cost and show you how much time it will take to pay those cost in savings to your payment.
If you are considering a refinance for your home it is also a great time to take a look at your homeowners insurance as well to make sure you are fully protected. Insurance is another place you need someone that can explain the in’s and out’s for you so you don’t get caught not able to fully rebuild or recover from a loss.
Aftermath of the Flood
Posted on | May 13, 2010 | No Comments
It’s been a few weeks since I have posted anything. I was out of town and returned the day before the rain came and the ensuing flood. It has been a mess but I have seen so many people volunteer and help that it has also been a testament to the people of the State of Tennessee. We really do live in a place where the fact that we might not know each other makes no difference in the kindness that is shown in time and treasure.
As a mortgage loan officer, I have received several calls in regard to the appraisal process of the homes that have not closed yet but have already received an appraisal before the flood. Most lenders that I have discussed this with are doing the same thing that Superior Bank is doing, which is getting an appraiser out to re-certify the property. It will cost an extra $100 to $300 to have that done but it is something the lender and the buyers are requesting. So far, all of our properties have been okay. That is not to say that there aren’t some problems and issues in and around the state. Those will need to be worked those out on a case by case basis. Unfortunately, that’s all we can do right now.
Credit Repair 101
Posted on | April 20, 2010 | No Comments
Lately I have talked to a lot of people who need a little help with their credit. As a lender, I can do something called a rapid re-score if you have proof from the creditor that you have paid off or paid down a credit line or if you have proof that a mistake was made reporting on one or more lines of credit; i.e.late pays, etc. However, your word for it, a copy of a check or credit card statement will not work. I have to have something from the creditor itself in order to do this process AND it only clears the issue for the mortgage loan and DOES NOT clear it for future purchases or purposes.
If you need something more substantial, I suggest you work with someone who can help you with a more in-depth credit repair. I do have someone that I refer people to that I believe is one of the best around. It’s important to find someone who is above board and fair minded.
Can You Modify a THDA Loan?
Posted on | April 15, 2010 | No Comments
This week I got a call for a very nice lady who had gone though all the steps to modify her loan but because it was a THDA loan the bank was unable to help her. Though she was justifiably upset, there are some things you need to understand about a THDA loan that can help you understand why this is a very difficult thing for the banks to do.
First of all, THDA was designed and still works to get buyers who may not otherwise be able to get into a home, into a home. There was never a reason to think of unwinding the bond that governs the THDA loan process due to what has gone on in the economy. So you are clear, there is a bond attached to the THDA loans that enable THDA to do what they do. It is my understanding that once a mortgage is secured, or wrapped, with the bond, it is fixed and cannot be changed.
While there are some people who have THDA loans that will have a hard time most will do very well since they have had some help through THDA. If you find yourself in trouble, the best thing to do is immediately call THDA and talk to them. No one wants you to loose your home and they will do everything they can to help. It really is up to you.
What Do You Do When Home Modification Doesn’t Work?
Posted on | April 7, 2010 | No Comments
When a home modification doesn’t work many people think that the next step is foreclosure but that is not the way to go is you can avoid it. There are more and more Realtors who are specializing in distressed properties and short sales these days than ever before. However, you need to be very careful who you trust as Realtors who have their CDPE (Certified Distressed Property Expert) designation will never ask you to pay for anything upfront or on the backend of the sale.
These Realtors know the new HAFA (Home Affordable Foreclosure Alternatives) law that went into effect on April 5th, 2010 and can help you discover if you are a candidate for a HAFA short sale, can walk through a short sale quicker than most and also see if you will be able to get some moving assistance to help you get relocated.
The main reason to look into a short sale over letting your property go into foreclosure has to do with your credit. One of the best resources is this Short Sale VS Foreclosure white paper. It has a lot of good information about the differences each has on your overall credit rating and the time frames associated with each.
Choosing a Realtor
Posted on | March 31, 2010 | No Comments
It might seem funny that a mortgage guy has any advice on choosing a Realtor. The reality is; we work with Realtors all the time and know who knows what they’re doing and who doesn’t. That’s not to say that a new Realtor who is just starting out is not your best choice because sometimes they are hungry and will do more for you than the busiest of Realtors. This is one reason I advise people who are looking for Realtor to either get a referral from someone who has used one or take the time to interview a few and decide which one is the best fit for you.
This is the same process for finding a good loan officer as well. Most of my customers are referrals from past clients or Realtors and most Realtors work with clients that are referred to them as well. However, if you want to get to know the Realtor before you ever call them take a look at their website. You can get a very good picture of their personality and how they work from simply reading and looking at the site. The main thing is to find a Realtor that works in your area of interest weather you are buying or selling.
BoA Makes Mistake & Forecloses on Wrong Home
Posted on | March 13, 2010 | No Comments
Every once in a while I come across a story that makes me smile. Though I feel terrible for the lady that has had to go through this ordeal, I hope she sticks it to BoA for all the other people out here that have been treated so badly by this large and seemingly unrestricted and out of control bank.
I have not had any personal experience with BoA as I have never had a loan or banked with them. However, I have listened to a number of people who have tried in vain over the pat year to get some temporary relief or a loan modification with BoA and the stories are heartbreaking. From being told they have to be behind on their mortgage when the head of BoA said before Congress in October of 2009 that you did not have to be behind on your mortgage in order for the bank to work with you to being called names and being hung up on and made to feel like you are a looser because you are having a hard time paying your mortgage.
Remember, this is one of the banks that took the American public for a ride and a half in bailout money, etc. The least they could do is work with those people who are willing and want to get a resolution made on their loans. You know the kind of people I’m talking about; the kind that want to pay their bills but have been laid off or finding work hard to come by. I don’t know about you but there is an old saying, “but for the grace of God, there go I”. We would all do well by remembering that, including the big banks and financial institutions.
For more on the story of the wrong house foreclosed on.
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