Rising Mortgage Fees = Rising Closing Costs

Alert. If you do not have a FICO Score 680 or higher and cannot put down a sizable down payment you’re being squeezed in the mortgage market. Fannie Mae and Freddie Mac are charging fees much higher than before to borrowers with lower scores and down payments of less than 30%. Unfortunately these are borrowers that were once considered “prime” credit applicants. Mortgage insurers like MGIC and PMI Group are raising premiums on consumers who have low down payments and scores mid-to upper 600s. Both penalties total thousands of dollars, payable either at settlement or in higher interest rates. Example if you qualify for a loan for 300,000.00 and your credit score is 675 and your LTV (Loan To Value) is 75% with a 25% down payment the additional cost will be 2,250.00 per loan. In today climate of finance the mortgage fallout and rising cost to loans are being passed on to us the consumer placing more strain on our economy and housing sector.

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5 Ways To Restore The Mortgage Market

With the mortgage industry struggling mightily here are 5 creative ways to fixing the mortgage market. Shared Appreciation a few banks offered this mortgage in the 1970s, but the Internal Revenue Service never clarified whether the payments to outside investors could be view as tax-deductibles interest, which left homebuyers nervous. The way it works a homeowner agrees to share the profit on the home if he sales at a profit. This idea is popular in Australia. Hedge with a short sale the homeowner would short a regional index of home prices. The bank would hold the futures position in escrow; it could reduce its risk of losing money. If the homeowner had to sell, he’d make enough on the short sale to cover the decline in value of his home. Offer Puts the homeowner would buy insurance against a decline in regional home prices. Vary duration, not monthly payments keep payments fixed, translate a higher interest rate into a longer mortgage term. Treasury inflation-protected mortgages these mortgages would have monthly payments that creep up slowly even in times of fast-rising interest rates. This is very similar to TIP bonds. Some states prohibit these mortgages

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A Cheaper Way To Homeownership

Buying your next home at an auction can save you a huge amount of cash in your wallets. First and foremost you set your OWN price when bidding on a home. You are not at the mercy of a seller unrealistic “asking price”. Other benefits include: No long negotiation period with offers going back and forth, huge selection of homes at rock-bottom auction prices. The lenders at these auctions are very motivated to sell these homes as soon as possible; lenders are in the lending business not home ownership. And to say the least these events are free, registration, pre-qualification, and admission are all included. Go to www.USHomeAuction.com for more details. When you check in you must have a 5,000 cashier check (made payable to yourself) or (cash equivalent) and checkbook. Keep in mind that 5% buyer’s premium will be added to the final cost of the home. Example if you bid 300,000.00 for a home it actually will be 315,000.00 after the 5% buyer’s premium is added. Realtor’s commissions are 1%. Overall if you are in the market for a home this could provide a viable option for homeownership

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Escrow And The Way It Works

Buying or selling a home (or other piece of real property) usually involves the transfer of large sums of money. It is Important that the transfer of these funds and related documents from one party to another be handled in a neutral, secure and knowledgeable manner. For the protection of buyer, seller and lender, the escrow process was developed. As a buyer or seller, you want to be certain all conditions of sale have been met before property and money change hands. In part escrow functions work like well oiled machine. One party engages in the sale, transfer or lease of real or personal property with another person delivers a written instrument, money or other items of value to a neutral third person, called an escrow agent or escrow holder. The third party (the escrow officer) waits for the completion of a specified event or the performance of a specified condition to finally disperse money or other items.The escrow holder responsibilities are to carry out the written instructions given by the principals. This means receiving funds and documents necessary to comply with those instructions, completing or obtaining required forms and handling final delivery of all items to the proper parties upon the successful completion of the escrow. In order for escrow to close successfully all documents need to place in the escrow holder care. This includes loan documents, tax statements, fire and other insurance policies, title insurance policies, terms of sale and any seller-assisted financing, and requests for payment for various services to be paid out of escrow funds. If the transaction requires new financing it is the buyer or the buyer’s agent to make the necessary arrangements. Documentation of the new loan agreement must be in the hands of the escrow holder before the transfer of property can take place. Once all instructions in the escrow have been carried out, the closing can take place. For example all outstanding funds are collected and fees such as real estate commissions, termite inspection title insurance premiums are paid. Finally when closing sellers and buyers should stay in close contact with their realtor to make sure all instruction are being met during escrow.

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Advice to Buyers: Spend Cautiously Before Closing

Homebuyers beware. Please do not throw your debt ratio out of whack before the close of escrow. Many deals fall through simply because of inopportune spending. A mortgage that you were previously approved of by a lender before closing can drastically change due to excessive debt. Lenders are pulling credit history and credit scores within a week of a buyer’s schedule closing date just to make sure nothing major has change. What the lender doesn’t want to see is a huge run-up of credit-card debt or other loans. Some lenders may require for you to sign a statement affirming that there has been no change in your finances and employment that will affect your ability to repay the loan back. Accumulating debt before closing can cause your credit score to change and the lender may longer be willing to lend money at the rate promised, or maybe not at all. My advice is to wait to do that shopping after closing.

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Boost Your Tax Deductions

1. Make an extra mortgage payment. The extra interest you pay will be added to this year’s mortgage interest by your lender, boosting your itemized deductions.

2. Donate to charity. It pays to be charitable, especially at the end of the year. Donating cash is always a good idea. You can also donate household goods, clothing, and other items.

3. Boost your business expenses. Business owners and independent contractors can buy office supplies, invest in new equipment, or pay bonuses to their employees.

4. Pay doctor bills, insurance premiums, buy eyeglasses, or stock up on prescription medications. You can take a deduction for medical expenses exceeding 7.5% of your adjusted gross income.

5. Organize your financial records. Good record keeping can really pay off at tax time. Not only will it make your tax preparation easier and faster, but you might uncover enough tax deductions to be able to itemize.


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How Greener Can The Other Side Be?

Are you one of those who constantly think of ways to conserve energy and save more in the process? Here are a few options you can use to save more on your power bills. Heat or cool your home less. Drive or fly fewer miles. Run electrical equipment less and run less water since pumping water takes lots of electricity. Buy more locally grown food and goods that are manufactured nearby; they’re typically made with cleaner U.S. manufacturing processes, and companies use less fuel to transport them. For appliances buy the most energy-efficient devices you can afford. Look for appliances with the Environmental Protection Agency’s Energy Star Label. Since 1992 the EPA says that is has help save Americans an estimated 14 Billion dollars on energy bills. The EPA has over four dozen types of products in its program. That includes everything from a DVD player to an air conditioner. The EPA also allows you to monitor your savings with the use of its website calculator so you can create a customize plan for reducing your environmental impact. The biggest annual energy impact in your household comes from climate-control systems (45%), Water heating (13%) and followed by your refrigerator (8%). By using a 25-watt compact fluorescent light bulb vs. using a conventional 100-watt bulb is the equivalent of saving 100 pounds of carbon dioxide. Moving your thermostat 2 degrees either up or down can reduce your energy usage by 1%. Houses that are well sealed and insulated, including heat ducts, use less energy because the furnace does not have work as hard. The easiest way to cut emission from your car is to drive less and use more public transportation and if you must drive consider car pooling. I know that saving money is on everyone’s mind. Discipline and having a plan in place can play a vital role in reducing your energy usage.

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It’s Raining Dollars For Foreign Investor’s

From CNN Money, Wall Street Journal to Forbes Magazine they all are reporting the fall in value of the U.S dollar. Interest rates have been slashed in order to boost our struggling economy. The sub-prime fallout from earlier this year is in full effect. When you purchase a home so many entities feed off a sole purchase that churns our economy.

Example, when a homebuyer completes escrow and receive the keys to their new home, they often purchase items from dept stores for their home. Landscaping, cable or satellite, pest control, home insurance you name it are all affected by foreclosure. When you hear about these foreclosures that are taking place through out the U.S. so many people feel the crunch as well. Moreover, lending has been extremely tightened which deepens the problem. We are all connected to one another one way or another.
Bank owned properties are springing up everywhere and with that leads to depreciation of whole communities. On the other hand, if your not getting in on this feeding frenzy then you just might miss a once in lifetime opportunity to buy properties at all time lows. Investor’s aboard are taking advantage of our real estate market. Why aren’t you?
The old saying is “don’t let opportunity pass you by”. Foreign investor’s are cashing in on the fall of the U.S. dollar.

Dan Greene, a certified mortgage planning specialist and author of TheMortgageReports.com states that inquiries outside the U.S. are 5 to 10 times higher than last year. Markets such as Miami and San Francisco are receiving huge boost in real estate sales from foreign investor’s. Chicago and New York and other parts of Florida are areas that are very attractive to foreign investor’s. Who’s influencing our economy? Is it the U.S. citizen or a wealthy person living some 10 or 12 time zones away? One thing is for sure we are truly living in a global market.


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Reverse Mortgages For Seniors, Extract Equity From Your Property

A reverse mortgage is a loan against the equity in the home that provides tax-free cash advances, but requires no payments during the term of the loan. Moreover, it doest not require an income or credit qualification. Basically all you need is to own your own home or condominium, and be 62 years of age or older. During the duration of the loan you will not have to make any monthly payments, meaning the balance will grow and equity will get smaller because the interest will accrue to your balance.Now if you decide to move from the property and it is no longer your principal residence, then loan will become due and payable. Other factors that can contribute to this are, the last surviving borrower sells or passes away. A reverse mortgage can used for everyday living expenses, such as home repairs and home improvement; medical bills and prescription drugs; pay-off existing debt; education; travel; long-term health care; retirement and estate tax planning; and other needs you may have. There are advantages and disadvantages of a reverse mortgage. Some advantages include, no qualifying loans, having to make mortgage payments and managing the account, cashing out money upfront. On the other hand you might have to qualify for a loan, slightly higher closing fees and few choices on the terms of the loan. For more details I suggest you consult with a reverse mortgage counselor.


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Solar Energy Is Gaining In Popularity And Usage.

Solar energy is becoming more popular by the minute. Besides providing electricity for residential homes, solar power is being used for water heaters to carports. Die-hard conservationist for the most part primarily used solar energy. There are examples of huge savings associated with solar energy.
Case in point: A elderly couple from Long Beach, CA had solar panels installed at their residence. They essentially cut their power bills from $400.00 a month to a mere $1.34. California is one of the most aggressive in offering consumer credits to use solar energy. Solar Energy Industries Association trade group advise consumers to check out installers through their web site, www.seia.org and to make sure the North American Board of Certified Energy Practitioners certifies them. Companies like Solar City help make high cost of solar systems more user friendly.
Solar City help consumers with remote monitoring of solar production to ensure that the consumer is getting the most out of their solar systems. One option for homeowners who find installation a bit costly is to lease a solar system. Some companies plans to start selling carports covered with photovoltaic cells to generate power for the home and hybrid cars.
Canada’s EnerWorks Inc. introduces older-thermal technology with newer products. They’re marketing a solar thermal water heater called the Space-Saver, which is designed to cut power bills while taking up less room than a traditional heater. The most economical approach is to purchase a new home that is already equipped with solar panels. Lennar Corp is expected to build 2,500 homes in California in partnership with SunPower Corp based in San Jose, CA. Lennar officials say the sales rate for their solar homes is running almost three times greater than conventional ones in a down market.
With other natural resources being stretched thin coming up with a new source of energy is important. Solar energy is a great way to save money while conserving our planet’s environment from pollution


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Improve Your Home Without Breaking The Bank

Homeowners, if you want to makeover your home, but you’re short on cash here are some ideas to consider. Let’s start with the yard. Landscaping does not have to be expensive, by replacing bushes and overgrown shrubs with colorful flowers will add value to your home. Another way to modernize your home is to update your fixtures. Swapping out older light fixtures and faucets will bring a newer look; also you can save more using fixtures that support halogen light bulbs. You can save $500.00 to $600.00 by replacing your floors yourself. Floating floors are options that can be installed on top of boards and linoleum floors this might come in handing in your rec and pantry rooms. One other way to add curb appeal to your home is repainting the trim and the front door of your home. This will take just a few hours to complete and save you a bundle of cash.
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Why Do I Need Home Insurance?

The recent Southern California wildfires in October 2007 served as a reminder of how powerful Mother Nature can be. Several homes were destroyed with thousands of people displaced from their homes proving the importance of home insurance. Over the years the United States has suffered some of the worst natural disasters in world history. From earthquakes, hurricanes, and wildfires you can’t never predict when these horrific life-changing events may occur. Having home insurance can soften the loss of your personal property and make recovering a bit easier. Tax dollar wise Here are some the most devastating natural disasters in U.S. history. Click here for a free quote of California home insurance. Keep in mind disasters can affect anyone at anytime
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How Safe Is Your Tap Water?

We often take for granted how safe our home tap water is. In reality it may be more harmful than you think it is. EPA (Environmental Protection Agency) mandates that all drinking water suppliers provide an annual quality statement. You can locate these reports at www.epa.gov. If you can’t find it there, then be sure to contact your local utility companies. If you like to test your water for contaminants, contact your local health departments or call the Environmental Protection Agency hotline at 1-800- 426-4791. These agencies will assist you in finding a state certified lab for water testing. Private Laboratories charge from anywhere from $15 to more than $100 depending on how many contaminants you test for. Households with small children or pregnant women should test their water for lead. Testing your water for contaminants is beneficial to your family’s health. If you experience your water having a odor or discoloration to it, you should have your water tested immediately.

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Beware Of Preliminary Title Reports

The shakiest thing besides an earthquake is a preliminary title report. You can rely on these as much as winning the lottery with one dollar. These reports simply do not reveal encumbrances and liens that may be attached to the property, also they do not represent condition of title.A title insurer is not liable for inaccuracies a preliminary title report fails to uncover. In California a prelim title report is no more than an offer to issue a title insurance policy based on the contents of the prelim title report and any modifications made by the title company before the policy is issued. A prelim title report discloses special taxes, assessments, bonds, covenants, conditions, restrictions, easements, rights of way, liens and, any interest of others which may be reflected on public record as affecting title, collectively called encumbrances. Escrow will use prelim title reports to detect any defects that might affect title. The escrow officer will review the title report. They are responsible for advising the seller to eliminate any encumbrances on title that would disrupt closing of escrow. There is a written statement called an Abstract Of Title that is more reliable than a prelim title report. The Abstract title is a statement of facts gathered together from public records. An abstract of title is not an insurance policy. This is separate from title insurance. Title insurance is required before the close of escrow. Bottom-line: The prelim title report is simply an offer by a title company to offer title insurance. It is subject to change prior to issuing the policy of title insurance. Whenever you need a title report request a Abstract of Title before a prelim title report. It will save you the headache..

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Get A Home Inspection Or Home Rejection

I can’t over emphasize the importance of a Home Inspection Report. For sellers this report should be included in your listing package, for buyers this will provide a clear view of any defects the home might have. Home sellers this report should be attached to your TDS (Transfer Disclosure Statement), on receipt of the report, the seller act to eliminate some or all of the deficiencies noted in the home inspection report. . When you bring any defects to code a new report should be ordered immediately. Home sellers will be protected down the road, by demands to correct defects or to adjust the sales price in order to close escrow. The listing agent should order this report on the seller’s behalf. The listing agent will lose control over the marketing and closing process, and expose himself to claims of misrepresentation, when the buyer or the buyer’s agent orders the report first. Home Inspectors are generally your Contractors, Structural pest control operators, architects and registered engineers. When hiring a home inspector you should look for these qualifications. Educational training in home inspection related reports, length in time in inspection employment, errors and omissions insurance, and professional and client references; and membership in the California Real Estate Inspection Association. A listing agent requesting a home inspection report should advise the home inspector that the seller, broker and all prospective buyers of the property will be relying on the report. This disclosure will avoid later (unenforceable) claims by the home inspector that the report was intended for sole use of the seller, broker, or buyer who signed the home inspector’s contract. Here is a South Bay area home inspection company http://www.southbayhomeinspections.com/ they specialize in enhanced home inspections, pool and spa inspection, lead testing, and air sampling and mold. This company stress the need for continual training of their inspectors, they also posses membership of highly professional accreditations. .

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Shame on the Media

As a realtor in today’s market, my job has been hampered by the “bad market” cliché. Everyone seems to have the Chicken Little “the sky is falling” mentality. I definitely agree that lenders have tightened their lending criteria. However, there are still transactions being conducted on a daily occurrence. . When I prospect for clients the first question they ask me is “Is the market as bad as the experts say?” My reply is yes and no. Yes, because where foreclosures are high in numbers usually results in vacancies and short sales plunging the market south in depreciation. No, because there are markets that are high in demand and home appreciation is on the rise. Think about it, the two things that the United States government endorses is small business and home ownership. Lending across the board is tough now. Legislation is proposing new laws that will definitely make lending a problem. The media plays a significant role in the public mindset. The information from television, radio, and the Internet can be very misleading.
Case in point, I overheard a television network weighing in on the real estate market situation. They commented on how much our market (Los Angeles area) has depreciated, however the comparables were disparately different. The comparables used were between a one bedroom, one bathroom townhouse compared to a single-family house three bedroom, two bathrooms. Every realtor knows not to make such a comparison. It is like comparing apples to oranges.
Today’s headlines are filled with predatory lending accusations, realtor misrepresentation, and misconduct. Without a doubt this is sabotaging our market. It will make home sellers and homebuyers gun shy to pull the trigger on a deal. You can enlighten one or two but the media can poison 10 or 20 at the same time. The ordinary homebuyer and home seller will get mix signals about the market. It is common today for everyone not in the industry to try and educate the realtor, so being knowledgeable in your real estate market is the name of the game. Without the expertise and knowledge of a realtor consumers will be picking and guessing when to sell or when to buy. I constantly educate my clients with the latest and “correct updates” in the industry and put to rest any misconceptions about the market.
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Trust Your Knowledge Know Your Trust Deed.

When you sign a promissory note and record a trust deed, it becomes an acknowledgment of debt. A trust deed is used as the security device of preference to impose a lien on real estate. Your trust deed and notes are comprised in your loan doc's, they explain your interest rate, if your loan is fixed or adjustable, and the life and terms of your loan. A trust deed contains elements and characterizations that identifies all three parties in the trust deed. The parties in the trust deed are the owner, called the trustor (who voluntarily imposes the Trust Deed Lien on his property), the middleman, called the trustee, (who has power of sale over the property), and the lender or carryback seller, called the beneficiary (for whose benefit the trust deed lien encumbers the property). There are arrangements a trust deed lien carries. It carries the borrowers signature and notary acknowledgement, all three parties and legal description of property, and a promissory note and terms of the encumbrances. The trustor, is usually the borrower of money or buyer of credit. An owner can hold a fractional co-ownership or leasehold interest. Other interests besides the fee and leasehold include life estates, beneficial interests in existing trust deeds, as well as equitable ownership rights under land sales contracts and purchase rights under options to buy. The trustee’s role in a trust deed works likes this. The trustee’s responsibilities are to auction the property at a private sale on notice from the lender of a default or election to sell. The trustee also reconveys title to the owner and releases the lender’s lien on proper instructions from the beneficiary or the trustor. The beneficiary is the lienholder they hold a security interest in the property, called a lien. There are three ways to extinguish a trust deed relationship.

1. Foreclosure-by using a trustee’s deed or sheriff deed.
2. Full Repayment-by reconveyancing.
3. Mutual Agreement-by a deed-in-lieu of foreclosure.
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Evictions It’s The Law And Pretty Much The Last Call

What can be more depressing, frightening, and confusing when a foreclosure ends with an eviction? Here in California foreclosures has been growing steadily and with that comes an increase in evictions.There are certain ramifications that come with an eviction. For example, if you are a tenant occupying a property that has been foreclosed there may be a different set of rules. Let's say you reside in a area that is rent-controlled. You can’t be evicted because the bank will have to sell the property as a occupied. If you are the original borrower there is no escape from the inevitable. The eviction attorney will file what is called a Notice To Quit. These generally expire after thirty days. The Summons and Compliant will follow next leading to a Hearing Date. Once a Judgment of possession has been granted counsel will then send what is called a Writ to your local sheriff dept. The sheriff will post the eviction notice at the residence of record. On the day of the actual lock out the realtor that was hired by the bank along with the sheriff will team together to coordinate a lock out. That means a physical removal from the house. The realtor will then re-key the house and the is lock out completed. Some borrowers try to seek refuge by filing chapter 13. Now if this happens prior to sale then Bankruptcy proceedings will follow. Once that clears then the eviction process will begin. Bankruptcy filings after sale are different because counsel will file what is called a Motion For Relief and the eviction process will begin then. Bottom Line- Bankruptcy filings no longer protect a home owner today like they use to in the past and to add more not only will you have a foreclosure added to your credit profile an eviction will be added as well.

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Credit Crunch No Sweat. FHA Is The Way To Go

FHA was established in 1934 and is a part of the US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD). A loan can be Conventional, FHA or VA.
Meaning who is insuring the loan. Conventional loans are insured by PMI (private mi companies), FHA is insured by HUD, VA loans are insured by the Veterans Administration.

FHA was established to make home purchasing easier to qualify than conventional. FHA ARE FULL DOCUMENTATIN LOANS. With the changing in underwriting for Subprime Loans, FHA is a valuable option.
For the following reasons:
. 1. FHA loans are not FICO DRIVEN. The client can have a FICO score under 600, or no score or no credit.
2. FHA loans allow down payment assistance from other programs as seconds
3. FHA has a 3% down requirement (REGARDLES IF IT IS 1 – 4 UNIT BLDG)
4. You do not have to be A FIRST TIME BUYER, If you own 3 units, you can purchase a SFR
5. No counseling required, No Income Restrictions, No Property Location Restrictions
6. The entire down can be a GIFT
7. Seller can pay of to 6% of ALL CLOSING COSTS INCLUDING TAXES, INSURANCE OR INTEREST
8. FHA ALLOWS UP TO 85% LTV CASH OUT ON REFINANCES AND 100% ON NO CASH OUT
9. FHA allows clients to buy if it has been 3 years since a Foreclosure, and 2 years since a chapter 7 and 1 yr while in a chapter 13 (if all payments were made on time)
10. FHA allows a STREAMLINE REFI, for existing FHA borrowers, low costs,
No appraisal, No Proof of Income only Mortgage Rating, No Cash Out, No Credit Check


FHA LIMITS as of September, 07 (SUBJECT TO INCREASE SHORTLY))

Los Angeles, Long beach, Glendale One Family $362,790, Two Family $464,449
Three Family $561,441 and Four Family $697,696 (Orange and Riverside Counties will be different)

The limits change throughout the US.

**THE SELLER IS NOT REQUIRED TO PAY BUYER FEES, FHA CHARGES A 1.5% UPFRONT MIP WHICH WILL BE FINANCED IN THE LOAN AND A PORTION REFUNDED UPON THE REFINANCE OR SALE OF PROPERTY.
NO PREPAYMENT PENALTY (WHEN THE LOAN IS PAID OFF FHA WILL CHARGE INTEREST TO THE END OF THE MONTH).



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Foreclosure 911 Help!!!

In case you have been living underneath a rock the mortgage industry has been getting hammered by the subprime fallout. Adjustable Rate Mortgages has been on the rise and homeowners have not been able to keep pace with their increased interest rates. So what’s next you have not made a mortgage payment in the last three or four months your lender files a NOD (Notice Of Default) it can be devastating news, but don’t throw in the towel yet. Here are some viable options to consider . 1 Refinance- Obtain a new loan to pay off the one in default
2 Foreclosure Consultant- Seek the services of a Financial Advisor or investment counselor. For a fee they will prevent lienholders from enforcing or accelerating the note, or help reinstate the, or get an extension or last but least arrange a loan or advance for funds for the owner.
3 Deed-In-Lieu- You can deed the property to directly to the lender in exchange for canceling the secured debt.
4 Litigate- You can dispute the validity of the foreclosure by filing an action, restraining and enjoining the foreclosure.
5 Bankruptcy- You can file chapter 13
6 Sale- Owner sales property before Trustee Sale
7 Walk- You can just simply vacate all together when lender completes foreclosure.


Here is a website I encourage taking a look at www.foreclosureuniversity.com It goes into in-depth details about foreclosures and the information is free. It contains a foreclosure flow chart, explains short sale, and foreclosure laws
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Shorten your mortgage by paying a little extra each month

Mortgagors have an agreed date for payment each month with their lender with a grace period of a few days. Some mortgagors would prefer to pay half of their monthly payment 15 days prior and the remainder on the due date. Your lender says this can done, but through a third party company, which will charge you a sign up fee for several hundreds of dollars plus a monthly fee. There are third party companies for a fee that will deduct from your checking or saving account half of your regular principal and interest payment every two weeks. This will equate to 13 monthly payments for 12 months, thus shortening your note by at least 7 years and saving a huge amount of money. Here’s the catch you can do this yourself at not extra charge. Simply divide your monthly mortgage principal and interest by 12 and add that amount to your monthly mortgage payment. Example your mortgage payment is $2400 a month divide that amount by 12 resulting in $200.00 this is the amount you will pay to shorten your note. Your lender will have to accept your payment as well and this is how you can shorten your mortgage.

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CA Gov Schwarzenegger Signs Mortgage Related Bills

CA Governor Schwarzenegger sign three mortgage related bills aimed at protecting homeowners and increase affordable housing. Foreclosures in CA hit 17.408 for the three months ended June 30 up 799% from the same period last year, according to DataQuick Information Services, a La Jolla firm One of the three bills signed would permit state agencies to adopt emergency regulations to ensure that all mortgage lenders and brokers are subject to federal guidelines on non-traditional mortgages. Those guidelines, aimed at reducing the number of loans to people who can’t afford them, apply to national banks but not to state-licensed lenders. The second bill would make it a crime for appraisers to become involved in valuing properties for transactions in which their compensation is tied to the final price generated by the appraisal. This is to stop appraisers from overvaluing properties to increase their fees. The Third bill will raise the debt limit applied to the California Housing Finance Agency by $2 Billion. That presumably would increase the amount of affordable housing. .



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American Agent Online Chatting Community

Finally, a site that both buyers/sellers and Realtors can chat about anything real estate. For Realtors, American Agent Online is a unique way to communicate with buyers and sellers. The setup is simple, easy, and FREE. You get one free zip code to work with any additional zip codes are $5 apiece. This is how it works you login, I suggest minimizing your screen. You will here a sound that will alert you that a person wants to chat with you. Now this person is located in a zip code you have chosen. It is a great way to network especially with potential clients. I say try it out. What do you have to lose? I give it two thumbs up. It’s free to sign up depending on the zip code you choose. There may be a surplus of buyer and sellers that need your expertise in real estate.

For consumers (both buyers and sellers) the first step you need to do is enter your zip code or list of zip codes that you might be interested in chatting with a Realtor about real estate. If a Realtor is online in one of the zip codes you chosen, you can engage in a chat about all real estate affairs. www.americanagentonline.com is the way of the future I strongly endorse this site. There’s no pressure at all and your identity is confidential.

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Why Can't I Get a Loan?

Your credit score, (also known as your FICO score) is extremely important. Your credit score determines what you can or cannot purchase and how much it will cost you. For example, you qualify for a home loan but your qualifying interest rate is through the roof. This is because your FICO score from Experian, TransUnion, and Equifax suggest that your rate should be higher due to poor credit history.


Wait did you check you FICO score before applying for that home loan? This should be the first step before applying for a loan. The second step is to order your credit report from the three credit reporting agencies. Your FICO (Fair Isaac Corporation) score determines the amount of interest that you would pay on a particular loan. It is safe to say that you need to know your FICO score and determining factors that makeup your credit score to make sound financial decisions.

The factors that make up your FICO score are paying your bills on time, how much you owe, types of credit, and the number of new credit applications a person has applied for. Obviously paying your bills on time is very important. No lender wants to lend their money to someone who is unable to pay their bills on time. How much you owe is factored against how much you make. If you make $50,000 a year and you are $30,000 in debt, then this will hurt your credit score. The types of credit are also critical when your credit score is determined. Secured credit cards and home loans are definitely better than unsecured credit cards and other types of credit of this nature. Lastly, the amount of new credit applications can cause harm to your FICO score. When you apply for so much new credit, a lender may see this as sign that you may be going through financial hardships and thus acquiring credit to help the situation.

Let me share one of my experiences with you. Eight years ago I had a somewhat of a decent credit score between 670-690, yet I was being denied credit. I could not figure out what was going on. After doing some research I found out my problem. Although I paid a collection bill about 10 months earlier the damage was done. The account reflected as paid but it was recent and it affected my credit score tremendously.

The best remedy for a better FICO/credit score is consistency. Paying your bills on time will raise your credit/FICO score. It makes a world of difference between buying and renting a home. An example of this is two people applying for a 30yr mortgage. A person with a FICO score of 600 will have an average interest rate of 9.422%. Another person with an FICO score of 750 will get an average rate of 6.195% on a 30yr mortgage loan. That is close to $300.00 a month difference on a $216,000 loan.
From my experience in selling homes and buying homes for my clients, in today’s market you would benefit immensely from having a FICO score as high as possible. It could be the difference of calling yourself a homeowner or a renter.

Please respond if you have any questions or comments or other helpful information that I may include with this topic.

For more information, visit the websites below.
www.myfico.com
www.freecreditreport.com



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