MortgagesUndressed

With interest going down most of the last 3 months it may be tempting to keep floating. I don’t think that is a good idea. In all these weeks the rates are down about 1/2 a percent. A couple of posts ago I showed how much that saved.

You can see a long period of drops is slow in being significant. On the other hand, if something causes a scare in the financial market you could lose 1/2 % in a day.

So if you are in the middle of a loan, my advice is to lock your rate first thing in the morning. Lock in case the market goes beserk on you. It isn’t worth the gamble.

Lar

Click here for a halloween photo on our IssaquahUndressed.com site.

If you hire it done, A credit repair company or person will only charge you for what they can’t do, and what you should do, and what you can do, if you will do.

Read a book, say a prayer, make the call yourself. Look at your report, make a plan, call the creditors, make a deal, do it yourself.

About an article on MySpace by a real estate agent.

I have my blog readers set to show me recent articles on certain topics; real estate and mortgages included. So most of the time junk drops by. However, here is a myspacy list by a young realtor that is pretty good.

For example: Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate……. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

Now click here to see his list and break his bandwith with traffic he never dreamed of. Larry Cragun

With a reduction in interest rates as posted yesterday, and with todays rates, you should be able to qualify for about $16,000 more home.
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Here is Teresa’s question: If prices drop 2% and interest rates go up .5% Won’t payments go up? I am bad a math, can you help?

She isn’t as bad as she says: Under this example on a home valued at $300,000 with 20% down, the payment would go up almost $50.00 per month. But if the value went down 2% and the rate went down .5% the payment goes down almost $100.00 per month. That is what has happened in many markets over the last 3 months.

So if you almost qualified for the home you wanted, it is time to try again. Larry Cragun.

Thanks Teresa: Click here and participate in Teresa’s pumpkin contest.

If you have bad credit you should be able to turn it around in a year. The runaway market prices are mostly in the past. It is time to be patient and mature. It is also time to start planning on that new home.

“Bonnies Comment” Larry, When customers come to me with rejections in hand, I send them to a mortgage officer that adheres to your principles. Even if it takes a year to clear up the credit issues (and many times it doesn’t take that long if they’re committed to the process), they will be in a better position to survive the shift to ownership. There is so much more involved in ownership than just the mortgage that paying for high interest rates is sometimes the ticket to failure. I encourage my clients to make a plan with the mortgage officer to clean up the credit and take baby steps toward their goal to buy a house. Baby steps move you gradually closer to the goal until you’ve arrived without realizing it.

This Web site provides information about the States� January 2006 settlement with Ameriquest Mortgage Company (the �Settlement�) Click Here. On this Web site you will find detailed information about the Settlement and who may be eligible to receive restitution payments, as well as answers to frequently asked questions.

The Settlement resolves an investigation by the Attorneys General and/or banking and finance regulators of every state (except Virginia) and the District of Columbia into claims that Ameriquest and other affiliated companies had engaged in various unlawful mortgage lending practices

This was posted as a comment by Bonnie Ericksen of Real Estate Snippets and deserves front page. Lar

A colleague wanted to do the right thing so after getting her scores up high enough for refinancing at a better rate, she wanted to complete the process by paying off a small, but old collection account. Big mistake. She watched her credit score plummet overnight because what was an ��old debt�� (the collection account) became a current bad debt. Now she has to wait the time out once again to raise the scores back up.

For the second day in a row a friend of the faithful 25 came forward for help. Today’s brought front and center an important principle. Take care of your mortgage first, last, and always. In other words, if you are having financial problems your mortgage is your most important obligation.

The friend had gone through some problems. Things were better now, good enough they qualified for a 3 % down FHA loan. Then quickly a fact surfaced that dashed the possibility. They had let a home go back to the bank and the bank took a loss. That transaction was FHA. Instead of a great rate and a low down payment this borrower has to either pay off the FHA deficit, which they cannot, or go hard money.

Hard money is high interest rates, prepayment penalties, and a big down payment.

It is not fun not being able to help. So I guess I have to get my joy in sharing these important principles with those who drop by and read. Larry Cragun