A crop of fake credit histories emerges - Kansas City Star
Shared via AddThis
I just recently had Julia Jensen from the FBI speak at InSight Mortgage Group's monthly Lunch and Learn about this very topic, credit fraud. The information she shared is absolutely amazing and unbelievable. Desperate times bring even more desperate measures. If you don't want to fall victim or prey to this, please consider using a lender who cares about you and your future. If you are looking for a home loan and a lender who will give you sound biblical advice, contact InSight Mortgage Group. Our focus is not about making dollars and cents, it's about helping you make sound financial choices!! Please give us a call at 913-642-3334 or visit www.wantinsight.com.
Wednesday, May 27, 2009
Thursday, May 21, 2009
MANAGING MONEY WISELY
Do you think that finances can be a real aggravation at times. Doesn’t it seem especially true these days with the ups and downs on Wall Street and the unemployment numbers growing? If you haven’t already surrendered your finances to God, now is the time to do so.
The subject of money and possessions is found in over 2,000 verses in the Bible. God makes the point of wanting us to handle money wisely. Jesus often spoke of being a good steward of the resources He entrusted to us. And He wants us to avoid making money an idol in our lives. Ecclesiastes 5:10 says: “ He who loves money will not be satisfied with money, nor he who loves abundance with its income.”
First, we can manage money wisely by practicing diversification. It’s also a biblical principal: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.” (Ecclesiastes 11:2 NASB) There is no one perfect investment – bonds, real estate, stock market, precious metals; each can perform well or poorly, has it’s own advantages or disadvantages.
Secondly, pay attention to your financial investments. Don’t ignore your monthly statements, open them and review each. And not just quickly glancing at the bottom line. Solomon wrote “You should take good care of your sheep and goats, because wealth and honor don’t last forever. After the hay is cut and the new growth appears and the hevest is over, you can sell lambs and goats to buy clothes and land. From the milk of the goats, you can make enough cheese to feed your family and servants.” (Proverbs 27:23-27 CEV) This translates today to not take anything for granted and keep a good watch on your investments and your household finances in general. Don’t make careless mistakes, inviting more stress into your life.
Next, avoid taking on more debt. The stress from debt can induce health problems – from muscle tension and migraines, to severe depression. Proverbs 22:7 says "Just as the rich rule the poor so is the borrower servant to the lendee."
Money, and it’s use, can be a challenge to us. Maybe even a source of conflict. That’s why God has given us many basic principals to live by and incorporate into our lives.
We can lend insight to your home financing needs and personal financial situation. Call us at 913-642-3334 or email me at michele@wantinsight.com with questions or comments.
The subject of money and possessions is found in over 2,000 verses in the Bible. God makes the point of wanting us to handle money wisely. Jesus often spoke of being a good steward of the resources He entrusted to us. And He wants us to avoid making money an idol in our lives. Ecclesiastes 5:10 says: “ He who loves money will not be satisfied with money, nor he who loves abundance with its income.”
First, we can manage money wisely by practicing diversification. It’s also a biblical principal: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.” (Ecclesiastes 11:2 NASB) There is no one perfect investment – bonds, real estate, stock market, precious metals; each can perform well or poorly, has it’s own advantages or disadvantages.
Secondly, pay attention to your financial investments. Don’t ignore your monthly statements, open them and review each. And not just quickly glancing at the bottom line. Solomon wrote “You should take good care of your sheep and goats, because wealth and honor don’t last forever. After the hay is cut and the new growth appears and the hevest is over, you can sell lambs and goats to buy clothes and land. From the milk of the goats, you can make enough cheese to feed your family and servants.” (Proverbs 27:23-27 CEV) This translates today to not take anything for granted and keep a good watch on your investments and your household finances in general. Don’t make careless mistakes, inviting more stress into your life.
Next, avoid taking on more debt. The stress from debt can induce health problems – from muscle tension and migraines, to severe depression. Proverbs 22:7 says "Just as the rich rule the poor so is the borrower servant to the lendee."
Money, and it’s use, can be a challenge to us. Maybe even a source of conflict. That’s why God has given us many basic principals to live by and incorporate into our lives.
We can lend insight to your home financing needs and personal financial situation. Call us at 913-642-3334 or email me at michele@wantinsight.com with questions or comments.
Tuesday, May 12, 2009
NEW REFI PLUS PROGRAM
Watch your savings add up quickly!
Even if you’ve experienced a property value decline as a result of the economic downturn and mortgage crisis, you may be able to refinance your home loan into a very low fixed rate mortgage!
The Mortgage Refinance Affordability Plan recently implemented by President Obama offers many homeowners the chance to refinance their current mortgages. Many homeowners who have seen their property values drop the past several years can see real help with this plan.
And we at InSight Mortgage Group can answer your questions and see if you qualify for this or other refinancing programs. If you have a current 80/20, 80/15/5 or 80/10 loan, where you did a 1st/2nd combo in order to avoid PMI, we may be able to get you into a 105% LTV first mortgage.
Save thousands of dollars over the life of your loan by locking into a low interest fixed rate loan. Maybe a refinance could save your home from foreclosure.
Whatever your personal home loan needs may be, take advantage now and see your savings add up. Call Dick or Michele at InSight Mortgage Group, 913-642-3334. Email us at dickw@wantinsight.com or michele@wantinsight.com or start your application online at wantinsight.com.
Even if you’ve experienced a property value decline as a result of the economic downturn and mortgage crisis, you may be able to refinance your home loan into a very low fixed rate mortgage!
The Mortgage Refinance Affordability Plan recently implemented by President Obama offers many homeowners the chance to refinance their current mortgages. Many homeowners who have seen their property values drop the past several years can see real help with this plan.
And we at InSight Mortgage Group can answer your questions and see if you qualify for this or other refinancing programs. If you have a current 80/20, 80/15/5 or 80/10 loan, where you did a 1st/2nd combo in order to avoid PMI, we may be able to get you into a 105% LTV first mortgage.
Save thousands of dollars over the life of your loan by locking into a low interest fixed rate loan. Maybe a refinance could save your home from foreclosure.
Whatever your personal home loan needs may be, take advantage now and see your savings add up. Call Dick or Michele at InSight Mortgage Group, 913-642-3334. Email us at dickw@wantinsight.com or michele@wantinsight.com or start your application online at wantinsight.com.
Thursday, April 30, 2009
FACT or FICTON: NO COST LOANS
Aren't there a lot of ads these days promoting "a great loan program that no one else has, so call immediately"? One of the most consistently promoted programs these days is the No Cost Home Loan.
It’s everywhere – radio, TV, the web, even in the shopping malls these days. “Refinance now with us and have no closing costs”. And you might think, “gee, with money being tight right now, that sounds good to me.” A free loan, save lots of money!
Didn’t Mom once say, “nothing in life is free”? And isn’t Mom usually right! Now, you actually can get a loan with little or no closing costs. But, what you’re not told is that you actually end up paying a higher interest rate than you really qualify for! This in turn means that you might save $3,000-4,000 in closing costs upfront, but the monthly payment could be $100-300 higher than it would have been if you had paid the closing costs.
Let’s walk through the process with the following example. Loan amount is $200,000. You will pay the closing costs on this loan, you qualify for a 6% rate. (not so perfect credit) Monthly payment (P&I) is $1,199. Banker ABC says “no closing costs, and 7%.” He may tell you, “the rate may seem just a little bit high, but you’ll save $3,000.” You think that sounds great!
What is not explained is the difference in the 6% rate you qualify for, and the 7% rate you choose to take for the “free” loan. Borrowing $200,000 at 7%, the payment is $1,330. So, that’s $131.00 more a month than the loan at 6%.
Now, if you choose the loan where you pay the closing costs and save $131 monthly, it will take you about 22 months to get your $3,000 back for the closing costs. And, if you stay in the house another five years beyond the “payback” time (22 months), you’ll save about $7,900 at the 6% rate. BUT, if you decide on the “no cost loan”, you’ll see about
$8,000 blow out the patio door into the wind.
Always ask what the difference in the rates is, and exactly what the closing costs will be. Figure the difference between the two programs – the loan with closing costs and the one without. Rule of thumb says that if in two years or less you’ll have paid back the closing costs, and you’ll be in the house for at least 5 years, then take the loan with the lower rate and pay the closing costs.
It’s our mission at InSight Mortgage Group to find the best loan program to meet your needs and to counsel you throughout the entire process. We specialize in making you, our client, our first priority. Please call us at 913-642-3334 or email me at michele@wantinsight.com with questions regarding refinance or purchase loans.
It’s everywhere – radio, TV, the web, even in the shopping malls these days. “Refinance now with us and have no closing costs”. And you might think, “gee, with money being tight right now, that sounds good to me.” A free loan, save lots of money!
Didn’t Mom once say, “nothing in life is free”? And isn’t Mom usually right! Now, you actually can get a loan with little or no closing costs. But, what you’re not told is that you actually end up paying a higher interest rate than you really qualify for! This in turn means that you might save $3,000-4,000 in closing costs upfront, but the monthly payment could be $100-300 higher than it would have been if you had paid the closing costs.
Let’s walk through the process with the following example. Loan amount is $200,000. You will pay the closing costs on this loan, you qualify for a 6% rate. (not so perfect credit) Monthly payment (P&I) is $1,199. Banker ABC says “no closing costs, and 7%.” He may tell you, “the rate may seem just a little bit high, but you’ll save $3,000.” You think that sounds great!
What is not explained is the difference in the 6% rate you qualify for, and the 7% rate you choose to take for the “free” loan. Borrowing $200,000 at 7%, the payment is $1,330. So, that’s $131.00 more a month than the loan at 6%.
Now, if you choose the loan where you pay the closing costs and save $131 monthly, it will take you about 22 months to get your $3,000 back for the closing costs. And, if you stay in the house another five years beyond the “payback” time (22 months), you’ll save about $7,900 at the 6% rate. BUT, if you decide on the “no cost loan”, you’ll see about
$8,000 blow out the patio door into the wind.
Always ask what the difference in the rates is, and exactly what the closing costs will be. Figure the difference between the two programs – the loan with closing costs and the one without. Rule of thumb says that if in two years or less you’ll have paid back the closing costs, and you’ll be in the house for at least 5 years, then take the loan with the lower rate and pay the closing costs.
It’s our mission at InSight Mortgage Group to find the best loan program to meet your needs and to counsel you throughout the entire process. We specialize in making you, our client, our first priority. Please call us at 913-642-3334 or email me at michele@wantinsight.com with questions regarding refinance or purchase loans.
Friday, April 24, 2009
STRENGTH IN FIRST-TIME BUYER SALES
Although March saw a slowing in existing home sales, low mortgage rates and tax credits are drawing first time buyers into the market according the National Association of Realtors.
NAR chief economist, Lawrence Yun, indicated that with the modest ups and downs recently seen in the market, it appears to be stabilizing. “The share of lower priced home sales has trended up, indicating a return of many first-time home buyers, which we also see in a parallel member survey”, he said. “Sales in the upper price ranges have stalled because of higher interest rates on jumbo loans.”
March ’09 saw a rise in home prices, with the national median existing-home price for all types of properties at $175,000, although it is down 12.4% from March 2008. But, the increase in March was 4.2%, which is more than double the 1.8% seasonal increase usually seen at this time. Over half the March transactions were distressed properties which typically sell for 20% less than traditional homes.
The March survey conducted by NAR of its practioners indicated 53% of transactions were first-time buyers. Yun said “buyer traffic has been rising, and real estate offices are getting phone inquires about the tax credit.” “By early summer we should be seeing a positive impact on home sales from record low mortgage rates in addition to the stimulus provisions.”
The Midwest region has fared better than the other regions in the country. March’s median price was $141,300, a drop of 6.1% from a year ago, compared to an 18.4% drop in the Northeast, 12.2% in the South, and 11.1% in the West.
At InSight Mortgage Group we can provide you with clear, concise information on the $8,000 first-time buyer tax credit, in addition to finding you the right loan program to fit your specific needs. Call us at 913-642-3334 or email me at michele@wantinsight.com. We look forward to working with you. Blessings.
NAR chief economist, Lawrence Yun, indicated that with the modest ups and downs recently seen in the market, it appears to be stabilizing. “The share of lower priced home sales has trended up, indicating a return of many first-time home buyers, which we also see in a parallel member survey”, he said. “Sales in the upper price ranges have stalled because of higher interest rates on jumbo loans.”
March ’09 saw a rise in home prices, with the national median existing-home price for all types of properties at $175,000, although it is down 12.4% from March 2008. But, the increase in March was 4.2%, which is more than double the 1.8% seasonal increase usually seen at this time. Over half the March transactions were distressed properties which typically sell for 20% less than traditional homes.
The March survey conducted by NAR of its practioners indicated 53% of transactions were first-time buyers. Yun said “buyer traffic has been rising, and real estate offices are getting phone inquires about the tax credit.” “By early summer we should be seeing a positive impact on home sales from record low mortgage rates in addition to the stimulus provisions.”
The Midwest region has fared better than the other regions in the country. March’s median price was $141,300, a drop of 6.1% from a year ago, compared to an 18.4% drop in the Northeast, 12.2% in the South, and 11.1% in the West.
At InSight Mortgage Group we can provide you with clear, concise information on the $8,000 first-time buyer tax credit, in addition to finding you the right loan program to fit your specific needs. Call us at 913-642-3334 or email me at michele@wantinsight.com. We look forward to working with you. Blessings.
Monday, April 20, 2009
REFINANCING HELPFUL HINTS
Even with low, low interest rates and new government recovery programs, it can be a tough road to walk to get to the closing table on refinancing your home loan. At InSight Mortgage Group, we work to smooth out the few bumps you may encounter along the way – it’s our specialty.
Strangely, the tough part isn’t the “approval” process for borrowers, it’s keeping the approval!
I’ve recently blogged about the mortgage industry in general, starting in 2005, being understaffed. With these wonderful low rates, lenders are getting slammed with requests and are having a difficult time handling the volume. An underwriting logjam has been created.
These days taking a mortgage application from start to finish with some lenders can be as long as 2 months! That’s double the time it took about 6 months ago, when the average was 20 days to closing.
You know, a lot can happen in 60 days. More so than in 20 days. And while there are things outside your control which may affect the loan process, there are a number of things you can control.
Mortgage approvals are delicate things and nothing’s complete until it’s complete! Please keep in mind the following “rules” for the period of time when your loan is in underwriting and before it closes.
A. DON’T buy a new car, trade up to a bigger lease, etc. (incur more debt)
B. DON’T start a new company or quit your job
C. DON’T move to a commissioned job from a salaried job
D. DON’T transfer large sums of money between bank accounts
E. DON’T be late on paying your bills
F. DON’T open any new credit accounts -- even if it’s 0% interest for the next year
G. DON’T take a cash gift unless you have all the proper “gift” paperwork filled out
H. DON”T make random, undocumented deposits into your bank account
The above are red flags to an underwriter and only one is enough to slow or even derail the process. Situations arise, and it doesn’t mean that you can’t get a cash gift or buy a new car, it means talk to your loan officer first. We’re here to guide you each step of the way, so call us at 913-642-3334 or email me at michele@wantinsight.com to get started on your refinance.
Strangely, the tough part isn’t the “approval” process for borrowers, it’s keeping the approval!
I’ve recently blogged about the mortgage industry in general, starting in 2005, being understaffed. With these wonderful low rates, lenders are getting slammed with requests and are having a difficult time handling the volume. An underwriting logjam has been created.
These days taking a mortgage application from start to finish with some lenders can be as long as 2 months! That’s double the time it took about 6 months ago, when the average was 20 days to closing.
You know, a lot can happen in 60 days. More so than in 20 days. And while there are things outside your control which may affect the loan process, there are a number of things you can control.
Mortgage approvals are delicate things and nothing’s complete until it’s complete! Please keep in mind the following “rules” for the period of time when your loan is in underwriting and before it closes.
A. DON’T buy a new car, trade up to a bigger lease, etc. (incur more debt)
B. DON’T start a new company or quit your job
C. DON’T move to a commissioned job from a salaried job
D. DON’T transfer large sums of money between bank accounts
E. DON’T be late on paying your bills
F. DON’T open any new credit accounts -- even if it’s 0% interest for the next year
G. DON’T take a cash gift unless you have all the proper “gift” paperwork filled out
H. DON”T make random, undocumented deposits into your bank account
The above are red flags to an underwriter and only one is enough to slow or even derail the process. Situations arise, and it doesn’t mean that you can’t get a cash gift or buy a new car, it means talk to your loan officer first. We’re here to guide you each step of the way, so call us at 913-642-3334 or email me at michele@wantinsight.com to get started on your refinance.
Wednesday, April 15, 2009
RATES ARE LOW, BUT ....
Mortgage rates are low but there are costs associated with acquiring a loan. Those borrowers with less than perfect credit have incurred increased fees recently implemented by Freddie Mac and Fannie Mae. Many of us in the mortgage industry think that with the uncertainty in the mortgage market, other costs will increase as lenders look to reduce their costs and anticipate rates.
Lending standards are really tight which means that borrowers who qualify for the really low rates must meet a strict and narrow set of guidelines.
In general, to get the headline making rates, borrowers are often paying more points, or prepaid interest, that brings the mortgage rate down.
Over the past year and a half there has been many changes in mortgage pricing, and from the borrower’s standpoint, it’s mainly negative. Fees are added based on a borrower’s credit scores according to Fannie Mae and Freddie Mac’s new risk-based pricing. Now, borrower’s must have a FICO score of 740 or higher to avoid the extra fees, according to Dan Green, author of TheMortgageReports.com and loan officer with Mobium Mortgage in Cincinnati. Lenders incorporated the new rules into the rate sheets in the middle of January even though the official effective date is April.
These new fees, Loan Level Price Adjustments, are an unpleasant surprise for some borrowers wanting to take advantage of low rates. These fees create different pricing scenarios from one person to the next. What works for one borrower may cost the next person 1% more.
For those wanting to pull equity from their home through a cash-out refinance, fees have increased as well. And the lenders have added costs to condo financing.
A point is 1% of the mortgage amount, and is charged as prepaid interest. The more in points a borrower pays, the lower the rate. If points rise a bit, it’s a sign that lenders are looking for up front money as opposed to over time, thus covering a portion of their risk.
With government intervention in the mortgage market these days, rates are unpredictable, which generally causes lenders to price conservatively.
Why pay points? A borrower needs to decide whether paying a point (or more) makes more sense for them , or if a mortgage with a higher rate with no points would be better. Factors to consider would be how long does the borrower plan to stay in the home , and how long it will take for buying points to pay off. The more time a borrower plans to remain in the home, the more paying points makes financial sense. In the past one point in fees would buy a drop of 0.25% to 0.375%. These days the percentage is greater, dropping a rate 0.625% to 0.875%.
An example: A 30 yr fixed rate of 5.625% on a $417,000 loan with no points. By buying a point ($4,170), the rate dropped to 4.875%, which saves the borrower $261 monthly in interest cost. With that savings, it takes only 16 months to pay back the buy down. From this point on, everything is a benefit. Given traditional guidelines, the breakeven point would be double that 16 months.
Borrowers are also seeing some fee increases in underwriting and processing. It takes more expertise and work to process a fully documented file than the popular no-document loans of several years ago, thus the higher charges.
Mortgage rate lock fees are also more common. The largest increases in the title & settlement category are in the real estate transfer taxes charged by counties and cities. You may be able to save money when refinancing by using the same title insurance company who closed your first loan. Many title companies have gone out of business, or one company buys out another, so surviving companies are raising prices for title and settlement fees too.
A rule of thumb is that mortgage fees generally run 3% or so of the loan amount.
As a mortgage broker, InSight Mortgage Group has an advantage over the standard lender. We work with many different banks and lenders allowing us to shop around for you to find you the right product and best rate for your home financing. With so many banks and lenders discontinuing loan programs, constantly changing the guidelines or going out of business overnight, it’s good to have other options at our fingertips if the need arises. This keeps you from completely starting over.
Call us at 913-642-3344 for professional, integrity minded help in finding the right loan program for your specific needs. Or, email me at michele@wantinsight.com with your question or concern. My staff and I are ready to work for you. Have a blessed day.
Lending standards are really tight which means that borrowers who qualify for the really low rates must meet a strict and narrow set of guidelines.
In general, to get the headline making rates, borrowers are often paying more points, or prepaid interest, that brings the mortgage rate down.
Over the past year and a half there has been many changes in mortgage pricing, and from the borrower’s standpoint, it’s mainly negative. Fees are added based on a borrower’s credit scores according to Fannie Mae and Freddie Mac’s new risk-based pricing. Now, borrower’s must have a FICO score of 740 or higher to avoid the extra fees, according to Dan Green, author of TheMortgageReports.com and loan officer with Mobium Mortgage in Cincinnati. Lenders incorporated the new rules into the rate sheets in the middle of January even though the official effective date is April.
These new fees, Loan Level Price Adjustments, are an unpleasant surprise for some borrowers wanting to take advantage of low rates. These fees create different pricing scenarios from one person to the next. What works for one borrower may cost the next person 1% more.
For those wanting to pull equity from their home through a cash-out refinance, fees have increased as well. And the lenders have added costs to condo financing.
A point is 1% of the mortgage amount, and is charged as prepaid interest. The more in points a borrower pays, the lower the rate. If points rise a bit, it’s a sign that lenders are looking for up front money as opposed to over time, thus covering a portion of their risk.
With government intervention in the mortgage market these days, rates are unpredictable, which generally causes lenders to price conservatively.
Why pay points? A borrower needs to decide whether paying a point (or more) makes more sense for them , or if a mortgage with a higher rate with no points would be better. Factors to consider would be how long does the borrower plan to stay in the home , and how long it will take for buying points to pay off. The more time a borrower plans to remain in the home, the more paying points makes financial sense. In the past one point in fees would buy a drop of 0.25% to 0.375%. These days the percentage is greater, dropping a rate 0.625% to 0.875%.
An example: A 30 yr fixed rate of 5.625% on a $417,000 loan with no points. By buying a point ($4,170), the rate dropped to 4.875%, which saves the borrower $261 monthly in interest cost. With that savings, it takes only 16 months to pay back the buy down. From this point on, everything is a benefit. Given traditional guidelines, the breakeven point would be double that 16 months.
Borrowers are also seeing some fee increases in underwriting and processing. It takes more expertise and work to process a fully documented file than the popular no-document loans of several years ago, thus the higher charges.
Mortgage rate lock fees are also more common. The largest increases in the title & settlement category are in the real estate transfer taxes charged by counties and cities. You may be able to save money when refinancing by using the same title insurance company who closed your first loan. Many title companies have gone out of business, or one company buys out another, so surviving companies are raising prices for title and settlement fees too.
A rule of thumb is that mortgage fees generally run 3% or so of the loan amount.
As a mortgage broker, InSight Mortgage Group has an advantage over the standard lender. We work with many different banks and lenders allowing us to shop around for you to find you the right product and best rate for your home financing. With so many banks and lenders discontinuing loan programs, constantly changing the guidelines or going out of business overnight, it’s good to have other options at our fingertips if the need arises. This keeps you from completely starting over.
Call us at 913-642-3344 for professional, integrity minded help in finding the right loan program for your specific needs. Or, email me at michele@wantinsight.com with your question or concern. My staff and I are ready to work for you. Have a blessed day.
Thursday, April 9, 2009
A GLIMMER of SUNSHINE
Demand for purchase loans rose the first week in April even though interest rates rose slightly from record lows, even outreaching the demand for refinancing. This gives hope to the hard-hit housing market as Spring approaches, generally the high season for purchases.
The Mortgage Bankers Association and various lenders have reported an increase in applications these past few weeks. We,at InSight Mortgage Group, have been blessed with many new applications. Many economists believe that our economy will begin to emerge from its slump when the housing market stabilizes. And the growing demand of refi’s due to the low rates available, can provide some relief to burdened consumers by providing them with lower monthly payments.
A ray of hope is actually found in Calilfornia, the hardest hit state in the housing bust. The median single family home price recently was down 41% from a year earlier and new home construction starts had almost disappeared. But, is the worst now over? Inventory is shrinking, investors are coming back, and sales volume is increasing.
More than 600,000 homes were purchased in February this year. The numbers show that the majority of the sales were bank owned foreclosures. And some areas, according to the California Association of Realtors spokesperson, are seeing slight increases in price per square foot, which is a hopeful indicator. The market is seeing an increase of investor purchased properties too.
The best indicator of positive change is in the inventory supply. A year ago it was 15 months, now it’s at 6.5 months! Generally a six-seven month supply of homes is considered a “normal” market. Nationally, the market has an overall 9.7 month supply.
And, according to the NAHB (National Association of Home Builders), model homes are seeing a lot more foot traffic due to combination of the first-time homebuyer credit, low interest rates, and affordable prices. Joe Robson, NAHB chairman, reports "consumer interest is increasing”. He also reported that approximately 1.5 M visitors have logged on to their website to learn more about the $8,000 tax credit for first time homebuyers.
And for us, locally the numbers are good too. According to the National Association of Realtors home sales in the Midwest jumped 14.5%. We should have the local Kansas City regional numbers for March soon.
If the hardest hit area begins to show signs of slight improvement, what does that mean for the rest us?
Call us at InSight Mortgage Group, 913-642-3334, for the good news on purchase and refinance rates. Please email me at michele@wantinsight.com with your good news stories to share. Have a blessed day.
The Mortgage Bankers Association and various lenders have reported an increase in applications these past few weeks. We,at InSight Mortgage Group, have been blessed with many new applications. Many economists believe that our economy will begin to emerge from its slump when the housing market stabilizes. And the growing demand of refi’s due to the low rates available, can provide some relief to burdened consumers by providing them with lower monthly payments.
A ray of hope is actually found in Calilfornia, the hardest hit state in the housing bust. The median single family home price recently was down 41% from a year earlier and new home construction starts had almost disappeared. But, is the worst now over? Inventory is shrinking, investors are coming back, and sales volume is increasing.
More than 600,000 homes were purchased in February this year. The numbers show that the majority of the sales were bank owned foreclosures. And some areas, according to the California Association of Realtors spokesperson, are seeing slight increases in price per square foot, which is a hopeful indicator. The market is seeing an increase of investor purchased properties too.
The best indicator of positive change is in the inventory supply. A year ago it was 15 months, now it’s at 6.5 months! Generally a six-seven month supply of homes is considered a “normal” market. Nationally, the market has an overall 9.7 month supply.
And, according to the NAHB (National Association of Home Builders), model homes are seeing a lot more foot traffic due to combination of the first-time homebuyer credit, low interest rates, and affordable prices. Joe Robson, NAHB chairman, reports "consumer interest is increasing”. He also reported that approximately 1.5 M visitors have logged on to their website to learn more about the $8,000 tax credit for first time homebuyers.
And for us, locally the numbers are good too. According to the National Association of Realtors home sales in the Midwest jumped 14.5%. We should have the local Kansas City regional numbers for March soon.
If the hardest hit area begins to show signs of slight improvement, what does that mean for the rest us?
Call us at InSight Mortgage Group, 913-642-3334, for the good news on purchase and refinance rates. Please email me at michele@wantinsight.com with your good news stories to share. Have a blessed day.
Monday, March 30, 2009
Facing Crisis with Faith and Trust
I’ve blogged in the past about positive attitude and taking personal responsibility for maintaining a focus on fiscal steadfastness. I want to share with you some wisdom that addresses these same issues. These thoughts are from the pastor of my church. No matter what your particular faith may be, the impact of facing crisis with trust and faith in God gives each of us hope and peace in these turbulent times.
To paraphrase his words: Bail out, recession, layoffs, and foreclosure -- all are media headline material, and it’s hard to ignore that a national and global crisis exists. Most of us are impacted by, or know someone being impacted by, our current economic crisis. There are different types of crisis we encounter in daily life. It’s not a matter of IF a crisis will come, but WHEN it will come. It could be when a death of a family member occurs, a job is lost, someone we care about is assaulted, a divorce, or a diagnosis of cancer.
How do we respond to this? What is a biblical response to crisis? We need to look to the response we choose when crisis comes, no matter the cause of the crisis.
Pastor Anderson shares wonderful passages and stories of persevering, standing firm in faith, a biblical response to crisis. He talks of four central truths about God and these affirmed in the face of any crisis, will help us have a Godly response to crisis:
1. God is in control
2. God has a plan for the world
3. God has a plan for me
4. I can trust God
I encourage you to click on the link provided to listen to the sermon “Trusting God in the Face of Crisis”:
http://vineyardop.org/Site Resources/Modules/MinistryTools/Sermon/default.asp
As always, any of us here at InSight Mortgage Group will be happy to assist you with your mortgage needs or questions. Please call us at 913-642-3334 or email me at michele@wantinsight.com May God bring you peace now and in your time of crisis.
To paraphrase his words: Bail out, recession, layoffs, and foreclosure -- all are media headline material, and it’s hard to ignore that a national and global crisis exists. Most of us are impacted by, or know someone being impacted by, our current economic crisis. There are different types of crisis we encounter in daily life. It’s not a matter of IF a crisis will come, but WHEN it will come. It could be when a death of a family member occurs, a job is lost, someone we care about is assaulted, a divorce, or a diagnosis of cancer.
How do we respond to this? What is a biblical response to crisis? We need to look to the response we choose when crisis comes, no matter the cause of the crisis.
Pastor Anderson shares wonderful passages and stories of persevering, standing firm in faith, a biblical response to crisis. He talks of four central truths about God and these affirmed in the face of any crisis, will help us have a Godly response to crisis:
1. God is in control
2. God has a plan for the world
3. God has a plan for me
4. I can trust God
I encourage you to click on the link provided to listen to the sermon “Trusting God in the Face of Crisis”:
http://vineyardop.org/Site Resources/Modules/MinistryTools/Sermon/default.asp
As always, any of us here at InSight Mortgage Group will be happy to assist you with your mortgage needs or questions. Please call us at 913-642-3334 or email me at michele@wantinsight.com May God bring you peace now and in your time of crisis.
Monday, March 23, 2009
PROTECT YOUR IDENTITY
Recently I attended a seminar by an FBI representative on various types of fraud affecting the mortgage and real estate industries, and of course, our buyers and sellers. Then I had an enlightening conversation with a business associate whose focus is consumer protection and education.
Did you know that identity theft is America’s fastest growing white collar crime? The average dollar amount charged in identity theft is $92,893 and only 1 out of 700 thieves are ever prosecuted. And,the identity theft victim spends on average up to 600 hours restoring their identity. Identity theft is to knowingly transfer, possess, or use without lawful authority another person’s personal information to secure services or products, or to commit crimes in that person’s name.
The mortgage industry has stringent rules and oversights in place to safeguard our business from accepting applications using fraudently obtained information. A new national Red Flags Rule was implemented recently, further enhancing safety practices. At InSight Mortgage Group we have policies and procedures in place providing for the identification, detection, and response to “red flags” that could indicate identity theft.
There are five types of Identity Theft:
1. Financial – your information to obtain money, goods, or services leaving you
with the bill
2. Drivers License – an identity thief could obtain a drivers license in your name and accumulate traffic tickets in your name
3. Social Security – your social security numbers could be used for employment purposes and you could get the tax bill
4. Medical – your personal medical information could be used to obtain
prescriptions or medical health which could affect your health or reduce your
benefits
5. Criminal – your information could be used to escape fines or jail time. You
could actually end up in jail.
Military personnel are at risk too. Social Security numbers are the basis of personal and medical administration. In our era of Internet, credit cards, and computer file-sharing, the element of risk increases. The prime target is the deployed military person who most likely will not view his/her credit report for a year or more according to a public affairs officer with Army Human Resources Command. He said contractors, soldiers, and civilians should be aware of the dangers of identity theft and know how to protect themselves from unauthorized release of personally identifiable information.
Everyone should review their credit reports and financial statements regularly for any fraudulent charges. The Federal Trade Commission also suggests being alert to signs such as bills not arriving as expected, denials of credit for no apparent reason, or calls or letters about purchases never made.
Everyone is facing challenging economic times. Finances are a concern for each and every one of us, and identity theft is a potential threat to us all. Please don’t shake it off as a “it can’t happen to me” attitude. I’ve become aware of a valuable service provided by a company with integrity. Adell Associates of Pre-Paid Legal Services offers a comprehensive service you can use right now to help with the tough decisions all families and businesses must make. Everyone needs a will/living will but puts it off, maybe you’re thinking of bankruptcy, everyone signs contracts, and everyone needs to be concerned about their credit score and identity. These are some of the important benefits this service provides. For more information and personal assistance contact Adell Associates at 913-780-2375 or visit www.adellassociates.com.
Any of us at InSight Mortgage Group would be happy to discuss how we protect your identity through the loan process, or answer questions you may have. Call us at 913-642-3334 or please email me at michele@wantinsight.com. Have a blessed day.
Did you know that identity theft is America’s fastest growing white collar crime? The average dollar amount charged in identity theft is $92,893 and only 1 out of 700 thieves are ever prosecuted. And,the identity theft victim spends on average up to 600 hours restoring their identity. Identity theft is to knowingly transfer, possess, or use without lawful authority another person’s personal information to secure services or products, or to commit crimes in that person’s name.
The mortgage industry has stringent rules and oversights in place to safeguard our business from accepting applications using fraudently obtained information. A new national Red Flags Rule was implemented recently, further enhancing safety practices. At InSight Mortgage Group we have policies and procedures in place providing for the identification, detection, and response to “red flags” that could indicate identity theft.
There are five types of Identity Theft:
1. Financial – your information to obtain money, goods, or services leaving you
with the bill
2. Drivers License – an identity thief could obtain a drivers license in your name and accumulate traffic tickets in your name
3. Social Security – your social security numbers could be used for employment purposes and you could get the tax bill
4. Medical – your personal medical information could be used to obtain
prescriptions or medical health which could affect your health or reduce your
benefits
5. Criminal – your information could be used to escape fines or jail time. You
could actually end up in jail.
Military personnel are at risk too. Social Security numbers are the basis of personal and medical administration. In our era of Internet, credit cards, and computer file-sharing, the element of risk increases. The prime target is the deployed military person who most likely will not view his/her credit report for a year or more according to a public affairs officer with Army Human Resources Command. He said contractors, soldiers, and civilians should be aware of the dangers of identity theft and know how to protect themselves from unauthorized release of personally identifiable information.
Everyone should review their credit reports and financial statements regularly for any fraudulent charges. The Federal Trade Commission also suggests being alert to signs such as bills not arriving as expected, denials of credit for no apparent reason, or calls or letters about purchases never made.
Everyone is facing challenging economic times. Finances are a concern for each and every one of us, and identity theft is a potential threat to us all. Please don’t shake it off as a “it can’t happen to me” attitude. I’ve become aware of a valuable service provided by a company with integrity. Adell Associates of Pre-Paid Legal Services offers a comprehensive service you can use right now to help with the tough decisions all families and businesses must make. Everyone needs a will/living will but puts it off, maybe you’re thinking of bankruptcy, everyone signs contracts, and everyone needs to be concerned about their credit score and identity. These are some of the important benefits this service provides. For more information and personal assistance contact Adell Associates at 913-780-2375 or visit www.adellassociates.com.
Any of us at InSight Mortgage Group would be happy to discuss how we protect your identity through the loan process, or answer questions you may have. Call us at 913-642-3334 or please email me at michele@wantinsight.com. Have a blessed day.
Tuesday, March 17, 2009
The HOME AFFORDABLE REFINANCE Program: Questions and Answers
Our post the other day on the new Obama Home Affordable Plan generated alot of questions from you. We appreciate our readers and welcome your inquiries. The following information should clarify the REFINANCE portion of the program. We'll address the Modification portion in another blog.
I’m current on my mortgage. Will the Home Affordable Refinance help me?
Eligible borrowers current on their mortgage but who haven’t been able to refinance into today’s lower interest rates because of decreased home valuation, may be eligible to refinance into a 30 or 15 year fixed rate loan. Through the HAR program, Freddie Mac and Fannie Mae will allow the refinancing of mortgage loans that they own or that they placed in mortgage backed securities.
Who is considered eligible?
* Owner occupant of a one to four unit home.
* The loan is owned or controlled by Fannie Mae or Freddie Mac (unsure? See below)
* Are current on mortgage payments – haven’t been more than 30 days late in past 12 months
* The amount owed on the first mortgage is about the same or slightly less than the current value of the home
* Have a stable income sufficient to support the new mortgage payments.
How do I know if my loan is owned or has been securitized by Fannie or Freddie?
You should call your mortgage lender or servicer (company you send payments to) and ask about the program. Both have toll-free numbers and web submission processes to make this data available. Borrowers will enter/provide information to determine if either agency owns or securitized the loan. NOTE: other qualifying criteria must be met in addition to the loan being owned or securitized by either agency.
* Fannie Mae: 1-800-7fannie (8am-8pm EST) or www.resource_center@fanniemae.com
* FreddieMac 1-800-freddie (as above) www.freddiemac.com/avoidforeclosure
Who is my “loan servicer”? Is that the same as my lender or investor?
The company that collects your mortgage payments and who is responsible for the management and accounting of your loan is the servicer. Your servicer may also be your lender, which means they own the loan. However, many loans are owned by groups of investors (like pension funds) or individuals who buy mutual funds. These loans are managed by banks and other firms that specialize in servicing loans. If you have questions about the loan OR you are behind on your payments you should call your loan servicer at the number on your payment coupon or monthly statement.
I owe more that my property is worth. Do I still qualify to refinance under MHA?
Eligible loans include loans where the first mortgage will not exceed 105% of the properties’ current market value. Example: if your property is worth $200k, but you owe $210,000 or less, you may qualify. The current value of your property will be determined after you apply to refinance.
I have both a first and a second mortgage. Can I still qualify to refinance under MHA?
Borrowers with more than one mortgage may be eligible as long as the first mortgage is less than 105% of the value of the property. Eligibility will depend, in part, on agreement by the lender that holds the second mortgage to remain in a second position, and on your ability to meet the new payment terms on the first mortgage.
Will refinancing lower my payments?
The objective of the Home Affordable Refinance is to provide creditworthy borrowers who have shown a commitment to paying their mortgage the opportunity to get into a safe fixed rate mortgage with payments that are affordable today and sustainable for the life of the loan. You could see an immediate reduction in your payment if your rate is much higher than the current rates. But, if you’re paying on an interest only note, or have a low introductory rate that will increase in the future (variable rate), monthly payments may not go down if refinanced into a fixed rate, but may you avoid future payment increases AND you could save a great deal over the life of the loan. Your lender will give you a Good Faith Estimate that includes your new interest rate, mortgage payment and the amount you will pay over the life of the loan. Compare this to your current loan terms to see if it is an improvement. If not, then refinancing may not be right for you.
What is the interest rate and other terms of this refinance offer?
The objective of the refinance is to provide a fixed, affordable, and safe loan. There will be either a 15 or 30 term with fixed rate. The rate will be based on market rates in effect at the time of the refinance with any associated points & fees quoted by the lender. These rates may vary across lenders and over time as market rates adjust. The refinanced loans will not have prepayment penalties or balloon notes.
Will the amount owed on the loan be reduced?
No. Borrowers will be getting into safer, more affordable fixed rate loans. The principal amount owed to the first mortgage holder will not be reduced by refinancing. But the amount of interest repaid over the life of the loan will be reduced, saving you money.
Can I get cash out to pay other debts?
No. Only transaction costs, like the appraisal or title report fees, may be included in the refinanced amount.
How do I apply for a Home Affordable Refinance?
Call your mortgage servicer or lender and ask about the application process. PLEASE be patient. Detailed program requirements were just sent to lenders and servicers and it may take some time before they are ready to accept applications. Be prepared with your documents and information before you call.
What documentation will I need?
It's best to be prepared before you call. Have available:
* Household gross income (before tax), including recent pay stubs and/or other documentation of additional income sources
* Your most recent income tax return
* Information about any second mortgage on the house
* Account balances & minimum payments due on all credit cards
* Account balances & monthly payments on all other debts such as student loans and car loans.
If borrowers are delinquent on their mortgage, they will not qualify for the refinance plan.
Please call the office, 913-642-3334 with any questions or comments, or email me at michele@wantinsight.com We can provide insight and guidance to you and your specific financial picture.
I’m current on my mortgage. Will the Home Affordable Refinance help me?
Eligible borrowers current on their mortgage but who haven’t been able to refinance into today’s lower interest rates because of decreased home valuation, may be eligible to refinance into a 30 or 15 year fixed rate loan. Through the HAR program, Freddie Mac and Fannie Mae will allow the refinancing of mortgage loans that they own or that they placed in mortgage backed securities.
Who is considered eligible?
* Owner occupant of a one to four unit home.
* The loan is owned or controlled by Fannie Mae or Freddie Mac (unsure? See below)
* Are current on mortgage payments – haven’t been more than 30 days late in past 12 months
* The amount owed on the first mortgage is about the same or slightly less than the current value of the home
* Have a stable income sufficient to support the new mortgage payments.
How do I know if my loan is owned or has been securitized by Fannie or Freddie?
You should call your mortgage lender or servicer (company you send payments to) and ask about the program. Both have toll-free numbers and web submission processes to make this data available. Borrowers will enter/provide information to determine if either agency owns or securitized the loan. NOTE: other qualifying criteria must be met in addition to the loan being owned or securitized by either agency.
* Fannie Mae: 1-800-7fannie (8am-8pm EST) or www.resource_center@fanniemae.com
* FreddieMac 1-800-freddie (as above) www.freddiemac.com/avoidforeclosure
Who is my “loan servicer”? Is that the same as my lender or investor?
The company that collects your mortgage payments and who is responsible for the management and accounting of your loan is the servicer. Your servicer may also be your lender, which means they own the loan. However, many loans are owned by groups of investors (like pension funds) or individuals who buy mutual funds. These loans are managed by banks and other firms that specialize in servicing loans. If you have questions about the loan OR you are behind on your payments you should call your loan servicer at the number on your payment coupon or monthly statement.
I owe more that my property is worth. Do I still qualify to refinance under MHA?
Eligible loans include loans where the first mortgage will not exceed 105% of the properties’ current market value. Example: if your property is worth $200k, but you owe $210,000 or less, you may qualify. The current value of your property will be determined after you apply to refinance.
I have both a first and a second mortgage. Can I still qualify to refinance under MHA?
Borrowers with more than one mortgage may be eligible as long as the first mortgage is less than 105% of the value of the property. Eligibility will depend, in part, on agreement by the lender that holds the second mortgage to remain in a second position, and on your ability to meet the new payment terms on the first mortgage.
Will refinancing lower my payments?
The objective of the Home Affordable Refinance is to provide creditworthy borrowers who have shown a commitment to paying their mortgage the opportunity to get into a safe fixed rate mortgage with payments that are affordable today and sustainable for the life of the loan. You could see an immediate reduction in your payment if your rate is much higher than the current rates. But, if you’re paying on an interest only note, or have a low introductory rate that will increase in the future (variable rate), monthly payments may not go down if refinanced into a fixed rate, but may you avoid future payment increases AND you could save a great deal over the life of the loan. Your lender will give you a Good Faith Estimate that includes your new interest rate, mortgage payment and the amount you will pay over the life of the loan. Compare this to your current loan terms to see if it is an improvement. If not, then refinancing may not be right for you.
What is the interest rate and other terms of this refinance offer?
The objective of the refinance is to provide a fixed, affordable, and safe loan. There will be either a 15 or 30 term with fixed rate. The rate will be based on market rates in effect at the time of the refinance with any associated points & fees quoted by the lender. These rates may vary across lenders and over time as market rates adjust. The refinanced loans will not have prepayment penalties or balloon notes.
Will the amount owed on the loan be reduced?
No. Borrowers will be getting into safer, more affordable fixed rate loans. The principal amount owed to the first mortgage holder will not be reduced by refinancing. But the amount of interest repaid over the life of the loan will be reduced, saving you money.
Can I get cash out to pay other debts?
No. Only transaction costs, like the appraisal or title report fees, may be included in the refinanced amount.
How do I apply for a Home Affordable Refinance?
Call your mortgage servicer or lender and ask about the application process. PLEASE be patient. Detailed program requirements were just sent to lenders and servicers and it may take some time before they are ready to accept applications. Be prepared with your documents and information before you call.
What documentation will I need?
It's best to be prepared before you call. Have available:
* Household gross income (before tax), including recent pay stubs and/or other documentation of additional income sources
* Your most recent income tax return
* Information about any second mortgage on the house
* Account balances & minimum payments due on all credit cards
* Account balances & monthly payments on all other debts such as student loans and car loans.
If borrowers are delinquent on their mortgage, they will not qualify for the refinance plan.
Please call the office, 913-642-3334 with any questions or comments, or email me at michele@wantinsight.com We can provide insight and guidance to you and your specific financial picture.
Subscribe to:
Posts (Atom)
What's Next?
1 CORINTHIANS 16:9 “For a wide door for effective work has opened to me FIRST AND FOREMOST - I WANT TO SAY THANK YOU SOOOOO MUCH FOR LIFT...
-
Proverbs 12:15 The way of a fool is right in his own eyes, but a wise man listens to advice. Quote by John Wimber As I just blogged on Am... -
2 Chronicles 7:14 says, “ If my people who are called by my name humble themselves, and pray and seek my face and turn from their wicked w...