Monday, December 28, 2009

So what's your New Year's Resolution?? Interest Rates ticked up a bit... should we lock or not?

I received much positive feedback on this last post, so I thought I'd resend it to you along with a few additional updates.

I pray you and your families had a joyous Christmas!

What's your New Year's Resolution? Eat Right, Exercise More, Get Organized.... or considering buying or refinancing your home?? This blog will hopefully help you make a good choice if it's regarding home financing!

If you have been considering buying a home or even refinancing, you've probably been asking one of these questions? Should I refinance now? Should I buy now? What if rates go down again? With the economy this way, surely rates will have to drop again? I heard the Feds are going to lower rates again to stimulate the economy, should I wait to lock in an interest rate then? Just since Christmas, mortgage rates have tinged up about 3/8 or .375%. Depending on your loan size, that can make a difference on whether it makes sense to refinance or not.
These are all great questions and very valid. In the past, before all the housing bubble began, the answer to these questions might of been to wait. Times have changed! It's a whole new game in the mortgage world. If you are considering waiting to buy or refinance, below is a few reasons not to:

1. Mortgage Lenders are tightening guidelines to protect against future losses. Mortgage lenders are reducing loan to value limitations. They may require you to have 20% equity or more? If you are an investor or a jumbo borrower, those equity requirements are even higher. Someone who could qualify today, may not be able to qualify tomorrow.

2. The value of your home could decline, maybe it already has and could again? Foreclosures and short sales lower the market value of every home in your neighborhood and surrounding areas. A home that is comparable to yours that ends up selling for less than yours is going to lower your home's value. Lower appraisals lead to higher loan to values and, often, higher mortgage rates.

3. Have you or someone you know lost their job in the last two years? Job losses are happening at a very rapid rate. Many are being laid off as employers fear for the future stability of the company. Many are downsizing to offset lower prof ts (or no profits at all). Without a job and a steady paycheck, lenders won't give you a mortgage loan. I work with Business Fellowship International, a ministry that helps folks get connected and possibly into a new job. If this is you, please email me and I will help you in any way I can.

4. Another rise in cost is mortgage insurance or PMI. This is required if you have less than 20% equity or down payment in your home. PMI is an insurance that protects the lenders in the event of default. Remember hurricane Andrew and the impact it made on the insurance carriers? What's going on in the housing market right now, is comparable to that. Mortgage insurance carriers are raising rates and tightening guidelines as well, making it very hard to qualify or not allowing your payment to drop with the interest rate reductions.

5. What is your credit score? Most people assume their credit is good. But what is good anymore? To get the "preferred" or "going" interest rate, you have to have excellent credit scores, that means over 700 and sometimes over 720/740. Now don't get me wrong, we are still able to do loans under 700, but we would need to review your situation to see if it makes sense for you.

If you are thinking about buying or refinancing, now's the time to do it. The pendulum for mortgage loans has swung from one extreme to the other and it may be a long long while before lenders will consider loosening guidelines again. Financial crisis has it America.

But there is hope! Jeremiah 29:11 says, For I know the plans I have for you says the Lord, plans to prosper you, not to harm you, but to give you a future and a hope. 2 Chronicles 7:14 says If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land. If you have a relationship with the Lord, He will see you through! If you don't, consider asking Jesus into your heart, ask Him to forgive you of your sin and to cleanse you and make you new. He loves you so much and wants only good for you!

So, if your New Year's Resolution is to make a move or refinance your existing home, Jewel and I, the InSight Team, are here to help you make sound choices. We have many valuable resources and offer a variety of mortgage products.

For an Honest Approach to your Home Financing Needs, please give us a call or email us or visit us on the web at www.wantinsight.com.

Blessings Abundant!

Michele "MAC" A. Cole
Business Development
michele@wantinsight.com

Jewel Callahan
Mortgage Consultant
816-510-1399

Monday, December 14, 2009

Mortgage Rates - Lock or not to Lock? That is the question?

If you have been considering buying a home or even refinancing, you've probably been asking one of these questions? Should I refinance now? Should I buy now? What if rates go down again? With the economy this way, surely rates will have to drop again? I heard the Feds are going to lower rates again to stimulate the economy, should I wait to lock in an interest rate then?

These are all great questions and very valid. In the past, before all the housing bubble began, the answer to these questions might of been to wait. Times have changed! It's a whole new game in the mortgage world. If you are considering waiting to buy or refinance, below is a few reasons not to:

1. Mortgage Lenders are tightening guidelines to protect against future losses. Mortgage lenders are reducing loan to value limitations. They may require you to have 20% equity or more? If you are an investor or a jumbo borrower, those equity requirements are even higher. Someone who could qualify today, may not be able to qualify tomorrow.

2. The value of your home could decline, maybe it already has and could again? Foreclosures and short sales lower the market value of every home in your neighborhood and surrounding areas. A home that is comparable to yours that ends up selling for less than yours is going to lower your home's value. Lower appraisals lead to higher loan to values and, often, higher mortgage rates.

3. Have you or someone you know lost their job in the last two years? Job losses are happening at a very rapid rate. Many are being laid off as employers fear for the future stability of the company. Many are downsizing to offset lower prof ts (or no profits at all). Without a job and a steady paycheck, lenders won't give you a mortgage loan. I work with Business Fellowship International, a ministry that helps folks get connected and possibly into a new job. If this is you, please email me and I will help you in any way I can.

4. Another rise in cost is mortgage insurance or PMI. This is required if you have less than 20% equity or down payment in your home. PMI is an insurance that protects the lenders in the event of default. Remember hurricane Andrew and the impact it made on the insurance carriers? What's going on in the housing market right now, is comparable to that. Mortgage insurance carriers are raising rates and tightening guidelines as well, making it very hard to qualify or not allowing your payment to drop with the interest rate reductions.

5. What is your credit score? Most people assume their credit is good. But what is good anymore? To get the "preferred" or "going" interest rate, you have to have excellent credit scores, that means over 700 and sometimes over 720/740. Now don't get me wrong, we are still able to do loans under 700, but we would need to review your situation to see if it makes sense for you.

If you are thinking about buying or refinancing, now's the time to do it. The pendulum for mortgage loans has swung from one extreme to the other and it may be a long long while before lenders will consider loosening guidelines again. Financial crisis has it America.

But there is hope! Jeremiah 29:11 says, For I know the plans I have for you says the Lord, plans to prosper you, not to harm you, but to give you a future and a hope. 2 Chronicles 7:14 says If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land. If you have a relationship with the Lord, He will see you through! If you don't, consider asking Jesus into your heart, ask Him to forgive you of your sin and to cleanse you and make you new. He loves you so much and wants only good for you!

Jewel and I, the InSight Team, are here to help you make sound choices with your mortgage. We have many valuable resources and offer a variety of mortgage products. Please give us a call or email us or visit us on the web at www.wantinsight.com.

Most Cordially

Michele "MAC" A. Cole
Business Development
michele@wantinsight.com

Jewel Callahan
Mortgage Consultant
816-510-1399

Friday, December 4, 2009

Who are you seeking advice from?

I've been talking with several folks recently all of whom are asking for advice? Should we pay off our debt? If we could pay off our mortgage would that be wise? I have good credit but my lender won't let me do a rate reduction to lower my payment unless I'm a few months late on my mortgage payments. Should I just not pay my mortgage? These are just a few of the questions I receive pretty regularly.

Who are you seeking advice from? If your answer is God, then you've answered correctly. It is not only the best advice you'll ever get, but there is no substitute for the wisdom God can provide you. God is much wiser than any man!

If you're advisor is one who seeks the Lord for wisdom and counsel, then that is who I'd recommend. The bible tells us to seek the kingdom of God first and His righteousness, and all things will be added unto you. Matthew 6:33. How do you know if your advisor is someone who follows God's Word? Ask? Find out what organizations they belong to? Find out where they've got their training?

One of the organizations I belong to and have become a qualified member of is Kingdom Advisors. (www.kingdomadvisors.org) Kingdom Advisors is an organization that equips the finacial professional with ongoing education to walk out biblical financial stewardship in our own lives as well as helping our customers make sound decisions.

Crown Ministries (www.crown.org) is a ministry whose purpose is to also teach and equip the believer to understand money God's way. One main thing I've learned through their ministry and study groups is that God owns it all! Money is not really yours. God owns it and has ultimate control over it (whether you realize it or not). God provides our every need (Phil 4:19). Once we learn to surrender to this realization, a weight comes off our shoulders. A pressing need to worry about our finances is lifted. That's why I highly recommend you work with an advisor that has this background!

There are many I can discuss and share with you but these are just a couple I am fond of. When we seek advice, we should first go to God for His infinite and timeless wisdom. "Blessed is the man who does not walk in the counsel of the wicked."

If you are looking for a professional who can help you with sound financial wisdom, God's way, please email me and I will make the connection for you!

Blessings abundant to you and your family this Christmas Season!

Michele "MAC". A. Cole
Business Development
The InSight Team
michele@wantinsight.com

If you are looking to refinance or purchase a home, please let the InSight Team lend insight in your home financing needs!