Merry Christmas from InSight Mortgage Group. We pray your season is filled with Joy, Hope & Love!
The Christmas Story!
And while they were there, the time came for her baby to be born. She gave birth to her first child, a son. She wrapped him snugly in strips of cloth and laid him in a manger, because there was no lodging available for them.
That night there were shepherds staying in the fields nearby, guarding their flocks of sheep. Suddenly, an angel of the Lord appeared among them, and the radiance of the Lord’s glory surrounded them. They were terrified, but the angel reassured them. “Don’t be afraid!” he said. “I bring you good news that will bring great joy to all people. The Savior—yes, the Messiah, the Lord—has been born today in Bethlehem, the city of David! And you will recognize him by this sign: You will find a baby wrapped snugly in strips of cloth, lying in a manger.”
Suddenly, the angel was joined by a vast host of others—the armies of heaven—praising God and saying,
“Glory to God in highest heaven,
and peace on earth to those with whom God is pleased.”
When the angels had returned to heaven, the shepherds said to each other, “Let’s go to Bethlehem! Let’s see this thing that has happened, which the Lord has told us about.” They hurried to the village and found Mary and Joseph. And there was the baby, lying in the manger. After seeing him, the shepherds told everyone what had happened and what the angel had said to them about this child. All who heard the shepherds’ story were astonished, but Mary kept all these things in her heart and thought about them often. The shepherds went back to their flocks, glorifying and praising God for all they had heard and seen. It was just as the angel had told them.
John 3:16, For God loved the world so much that he gave his one and only Son, so that everyone who believes in him will not perish but have eternal life.
Please call or email, michele@ wantinsight.com if we can help you with any questions you might have or for a review of your home financing needs. We are here to help you make sound choices and connect you to folks who can help you with your spending plans as well as ways to improve your credit!
Blessings galore!
Michele Cole
913-642-3334
www.wantinsight.com
Thursday, December 18, 2008
Tuesday, December 9, 2008
BIG HEADLINES, LOTS OF SPECULATION! 4.5% RATE?? ON THE AIR WAVES!
Fence sitting can be painful—don’t wait too long!
I imagine you’ve heard or read about the 4.5% mortgage rate thing being promoted by the government. The Treasury Department is being lobbied hard to consider a plan to purchase mortgage-backed securities with the hopes of driving mortgage rates down to possibly 4.5%, reported an industry source.
Timeline:
Wednesday (12/3): A story is “leaked” regarding the Treasury Department lowering mortgage rates to 4.5%
Thursday (12/4): That headline leads the news
Friday (12/5): 40+ Million American homeowners sit on the fence and Consider “Should I refinance today or wait for
something better?
The most obvious consideration is if the rates are low today, take advantage of it now! Because they may not be low tomorrow, or even 4 hours from now. Mortgage rates could fall a bit tomorrow – or not—so why take a chance? Refinance at today’s low rates, and if rates fall again in the future, you can refinance again. A wise move is to lock up your savings today!
Details of the plan remain vague at this time; each article specifically stated that there were no facts – just speculation. The plan appears to be similar to the move made recently by the Fed, in which securities backed by 30-year fixed rate mortgages would be purchased from Fannie Mae and Freddie Mac. Spokespeople from the Treasury Department and the Federal Housing Finance Agency are declining to comment on the proposed plan.
Mortgage rates dropped sharply, from 6.06% a week earlier to 5.5%, after the Fed’s announcement. The Mortgage Bankers Association said mortgage applications more than doubled as a result, with a majority of the business in the refinance sector.
An increased demand for mortgage-backed securities prompts mortgage rates to drop. In turn, homeowners can then refinance into lower-cost loans and it also makes it cheaper for potential buyers to get into the market. This move would help buyers and current homeowners with good credit, says industry experts, but would not provide much help to troubled borrowers.
Experts weigh the positives and negatives
This potential move by the Treasury has prompted mixed views on how much homeowners and the economy would benefit. Lower rates could help stabilize the housing market by bringing in new buyers, reducing housing inventory; those who refinance could have more money to spend.
Scott Talbot, senior vice president of the Financial Services Roundtable, which is encouraging the move, said “If it gets people buying homes and spending, it will help reverse the economy and get us out of this recession.” A senior financial analyst at Bankrate.com, Greg McBride, said “it is clearly designed to bring buyers into the marketplace and soak the inventory of unsold homes.”
But, rates are volatile, hovering around 5.25% on Friday, Dec.5th (dependent upon credit scores and other factors) and others have pointed out that several government attempts to lower mortgage rates this year have not had a lasting effect. Also, homeowners who have fallen behind on their payments, have little to no equity in their homes, or who have lost jobs would receive minimal benefit. And with tight credit standards, these borrowers would not be able to refinance to take advantage of the lower rates.
Sound financial decisions shouldn’t be made on speculation. So what do we know now:
*Mortgage rates are lower than they’ve been in years
*Mortgage guidelines are tight, even for “prime” borrowers
*Home prices nationally are falling, making qualifications harder
Rates are still volatile and could rise again overnight to price you out. What was that old saying of Mom’s “a bird in the hand …” And if rates fall after closing, maybe even reaching the “projected” 4.5%, we’ll refinance again.
Call me at 913-642-3334 or email me at michele@wantinsight.com with your comments or questions. It’s a great time to review your financial situation and ring in the holiday season on a positive note, and lower interest rate.
I also recently apeared on Pal Van Sickle podcast "The After Show" check out my interview on his site the after show
Michele A. "MAC" Cole
913-642-3334
www.wantinsight.com
I imagine you’ve heard or read about the 4.5% mortgage rate thing being promoted by the government. The Treasury Department is being lobbied hard to consider a plan to purchase mortgage-backed securities with the hopes of driving mortgage rates down to possibly 4.5%, reported an industry source.
Timeline:
Wednesday (12/3): A story is “leaked” regarding the Treasury Department lowering mortgage rates to 4.5%
Thursday (12/4): That headline leads the news
Friday (12/5): 40+ Million American homeowners sit on the fence and Consider “Should I refinance today or wait for
something better?
The most obvious consideration is if the rates are low today, take advantage of it now! Because they may not be low tomorrow, or even 4 hours from now. Mortgage rates could fall a bit tomorrow – or not—so why take a chance? Refinance at today’s low rates, and if rates fall again in the future, you can refinance again. A wise move is to lock up your savings today!
Details of the plan remain vague at this time; each article specifically stated that there were no facts – just speculation. The plan appears to be similar to the move made recently by the Fed, in which securities backed by 30-year fixed rate mortgages would be purchased from Fannie Mae and Freddie Mac. Spokespeople from the Treasury Department and the Federal Housing Finance Agency are declining to comment on the proposed plan.
Mortgage rates dropped sharply, from 6.06% a week earlier to 5.5%, after the Fed’s announcement. The Mortgage Bankers Association said mortgage applications more than doubled as a result, with a majority of the business in the refinance sector.
An increased demand for mortgage-backed securities prompts mortgage rates to drop. In turn, homeowners can then refinance into lower-cost loans and it also makes it cheaper for potential buyers to get into the market. This move would help buyers and current homeowners with good credit, says industry experts, but would not provide much help to troubled borrowers.
Experts weigh the positives and negatives
This potential move by the Treasury has prompted mixed views on how much homeowners and the economy would benefit. Lower rates could help stabilize the housing market by bringing in new buyers, reducing housing inventory; those who refinance could have more money to spend.
Scott Talbot, senior vice president of the Financial Services Roundtable, which is encouraging the move, said “If it gets people buying homes and spending, it will help reverse the economy and get us out of this recession.” A senior financial analyst at Bankrate.com, Greg McBride, said “it is clearly designed to bring buyers into the marketplace and soak the inventory of unsold homes.”
But, rates are volatile, hovering around 5.25% on Friday, Dec.5th (dependent upon credit scores and other factors) and others have pointed out that several government attempts to lower mortgage rates this year have not had a lasting effect. Also, homeowners who have fallen behind on their payments, have little to no equity in their homes, or who have lost jobs would receive minimal benefit. And with tight credit standards, these borrowers would not be able to refinance to take advantage of the lower rates.
Sound financial decisions shouldn’t be made on speculation. So what do we know now:
*Mortgage rates are lower than they’ve been in years
*Mortgage guidelines are tight, even for “prime” borrowers
*Home prices nationally are falling, making qualifications harder
Rates are still volatile and could rise again overnight to price you out. What was that old saying of Mom’s “a bird in the hand …” And if rates fall after closing, maybe even reaching the “projected” 4.5%, we’ll refinance again.
Call me at 913-642-3334 or email me at michele@wantinsight.com with your comments or questions. It’s a great time to review your financial situation and ring in the holiday season on a positive note, and lower interest rate.
I also recently apeared on Pal Van Sickle podcast "The After Show" check out my interview on his site the after show
Michele A. "MAC" Cole
913-642-3334
www.wantinsight.com
Tuesday, December 2, 2008
SHARP DECLINE IN MORTGAGE RATES FUEL HISTORIC LEVEL OF RATE LOCKS
On Wednesday, November 26, Secretary Paulson announced that the Fed will purchase up to $100 Billion in direct debt of Fannnie Mae, Freddie Mac and Federal Home Loan Banks and buy up to $500 Billion of Mortgage-Backed Securities.
With this news, the spread between Treasury bonds and mortgage-back securities narrowed significantly and fueled a sharp decline in mortgage rates.
So many customers who had been on the sidelines got into the game and locked their rates on refi's and new purchases. So much so, that many lenders announced that they reached recording breaking milestones!
Don't be a benchwarmer, get in the game now while rates remain historically low. Mortgage funds are available; we have a variety of programs to suit your specific needs. Call Michele at 913-642-3334 or email me at michele@wantinsight.com for the most current loan information.
Michele "MAC" A. Cole
913-642-3334
www.wantinsight.com
With this news, the spread between Treasury bonds and mortgage-back securities narrowed significantly and fueled a sharp decline in mortgage rates.
So many customers who had been on the sidelines got into the game and locked their rates on refi's and new purchases. So much so, that many lenders announced that they reached recording breaking milestones!
Don't be a benchwarmer, get in the game now while rates remain historically low. Mortgage funds are available; we have a variety of programs to suit your specific needs. Call Michele at 913-642-3334 or email me at michele@wantinsight.com for the most current loan information.
Michele "MAC" A. Cole
913-642-3334
www.wantinsight.com
Friday, November 7, 2008
STAYING PRODUCTIVE
Banish the Doom & Gloom thoughts!
How do we stay productive and motivated during these uncertain economic times, when the media is pounding us with doom and gloom stories? I try to work hard to protect myself from the negativity found daily in the paper, on TV, and over the internet. I don’t advocate a “hide your head in the sand” mentality, but I encourage us all to have faith and work on a more positive attitude.
By living a life of intention - focusing on actions to create the life we want - rather than by reaction, we can better guard ourselves from negativity. There's no sense in spending time on things that are outside of our control. Instead of focusing on the problems, we need to look for solutions. By focusing on what we can control, we can reduce worry and stress, maintaining productivity and keeping our motivation at a higher level.
Through each challenge or difficulty we experience, we need to look for a kernel of benefit or positive direction. We can gain strength through adversity, avoid thoughts of panic, by focusing on a benefit of the situation. It’s a process; adversity moves you along – you can gain strength or you can let it can weaken your resolve.
Look at Thomas Edison. In his development of the electric light bulb he documented 10,000 failed attempts. He was asked by a reporter how it felt to have failed 10,000 times. Edison replied, “I didn’t fail 10,000 times trying to invent the light bulb, I simply documented 10,000 ways that it wouldn’t work.” Where would we be today it Edison had quit?
So with the economy, maybe we accept it “as it is”. Neither bad or good, but look at todays’ situation with openness and interest, rather than fear or panic. We discover that kernel of hope and opportunity. Combine that with determination and personal focus, and we stay productive. A common trait among self-made millionaires is the willingness to persevere when times are tough.
Move the focus from the overall uncertain economic situation to your personal situation and ask “What would responsible action look like?” Do you need to adjust your spending to live within your means? Are you honoring the money you have? Acknowledging the facts of your own life is a powerful starting point for reducing anxiety and taking action that is necessary.
To weather the current economic storm: Focus on the facts of your life, the future you want to create, and take action to make it happen – irrespective of what the news is promoting or what your friends are talking about. Believe in yourself, learn from adversity and grow stronger from it, take inspired action. Create your life of intention!
Our goal at InSight Mortage Group is to provide you with the expertise, education and tools needed in making smart financial decisions and the right mortgage choice for your personal goals. Please feel free to call me, visit my website, or email me at michele@wantinsight.com.
Michele "MAC" Cole
913-642-3334
www.wantinsight.com
How do we stay productive and motivated during these uncertain economic times, when the media is pounding us with doom and gloom stories? I try to work hard to protect myself from the negativity found daily in the paper, on TV, and over the internet. I don’t advocate a “hide your head in the sand” mentality, but I encourage us all to have faith and work on a more positive attitude.
By living a life of intention - focusing on actions to create the life we want - rather than by reaction, we can better guard ourselves from negativity. There's no sense in spending time on things that are outside of our control. Instead of focusing on the problems, we need to look for solutions. By focusing on what we can control, we can reduce worry and stress, maintaining productivity and keeping our motivation at a higher level.
Through each challenge or difficulty we experience, we need to look for a kernel of benefit or positive direction. We can gain strength through adversity, avoid thoughts of panic, by focusing on a benefit of the situation. It’s a process; adversity moves you along – you can gain strength or you can let it can weaken your resolve.
Look at Thomas Edison. In his development of the electric light bulb he documented 10,000 failed attempts. He was asked by a reporter how it felt to have failed 10,000 times. Edison replied, “I didn’t fail 10,000 times trying to invent the light bulb, I simply documented 10,000 ways that it wouldn’t work.” Where would we be today it Edison had quit?
So with the economy, maybe we accept it “as it is”. Neither bad or good, but look at todays’ situation with openness and interest, rather than fear or panic. We discover that kernel of hope and opportunity. Combine that with determination and personal focus, and we stay productive. A common trait among self-made millionaires is the willingness to persevere when times are tough.
Move the focus from the overall uncertain economic situation to your personal situation and ask “What would responsible action look like?” Do you need to adjust your spending to live within your means? Are you honoring the money you have? Acknowledging the facts of your own life is a powerful starting point for reducing anxiety and taking action that is necessary.
To weather the current economic storm: Focus on the facts of your life, the future you want to create, and take action to make it happen – irrespective of what the news is promoting or what your friends are talking about. Believe in yourself, learn from adversity and grow stronger from it, take inspired action. Create your life of intention!
Our goal at InSight Mortage Group is to provide you with the expertise, education and tools needed in making smart financial decisions and the right mortgage choice for your personal goals. Please feel free to call me, visit my website, or email me at michele@wantinsight.com.
Michele "MAC" Cole
913-642-3334
www.wantinsight.com
Friday, October 31, 2008
THE FED RATE & MORTGAGE RATES: THE UPS & DOWNS
Will Mortgage rates drop since the Fed cut its rate?
On Wednesday, Oct 29th, the Fed voted to cut the Federal Funds Rate by ½%. This cut is seen as positive news for consumer loans, home equity lines of credit (variable rates) and adjustable rate mortgages. So, will fixed mortgage rates automatically drop too? NO, there is no direct correlation between the two rates.
Unfortunately the media isn’t always clear when these announcements are made. The economics underlying the cut is thought to be boring to the general public, and boring is not in the media vocabulary.
The Federal Reserve doesn’t control stock prices nor mortgage rates. Sometimes the rate change by the Fed can influence mortgage rates: sometimes in the same direction at the same time, but often they move in opposite directions. After the rate cut was announced on Wednesday, the fixed mortgage rates improved – for about 15 minutes. But then the mortgage pricing started to climb; within the first half hour lenders had issued new rate sheets indicating an increase of nearly .250.
Basically it’s short term vs. long term. The Fed Funds Rate is a short term interest rate. The FFR is a base for the Prime rate, with 3% added. The rate is adjusted by the Federal Reserve Bank to help control inflation, to help balance prices & stimulate economic growth, and to provide the financial markets with liquidity. The cost of short term borrowing is adjusted.
It’s the mortgage-backed securities market that influences fixed mortgage rates, not the Fed. Generally they are 30 year bonds (at fixed or variable rates), and are considered as long-term products. Investors often move their money into the stock market and out of the mortgage bond market when the Fed cuts rates. It’s these daily ups and downs in the bond market that causes mortgage rates to fluctuate.
With the most recent cut, the Federal Fund Rate is at its 50 year low, and we see mortgage rates closing in on their 3 year high point.
The Fed hopes to stimulate the economy with lower rates. In the long run, a healthy economy positively impacts the real estate market and that benefits the mortgage market by keeping rates competitive. So there is an indirect influence, but no direct tie to one another.
Feedack is always welcome so please send us your comments. You can call me at 913-642-3334, email me at michele@wantinsight.com or post comments on the blog.
Michele A. "MAC" Cole
913-642-3334
www.wantinsight.com
On Wednesday, Oct 29th, the Fed voted to cut the Federal Funds Rate by ½%. This cut is seen as positive news for consumer loans, home equity lines of credit (variable rates) and adjustable rate mortgages. So, will fixed mortgage rates automatically drop too? NO, there is no direct correlation between the two rates.
Unfortunately the media isn’t always clear when these announcements are made. The economics underlying the cut is thought to be boring to the general public, and boring is not in the media vocabulary.
The Federal Reserve doesn’t control stock prices nor mortgage rates. Sometimes the rate change by the Fed can influence mortgage rates: sometimes in the same direction at the same time, but often they move in opposite directions. After the rate cut was announced on Wednesday, the fixed mortgage rates improved – for about 15 minutes. But then the mortgage pricing started to climb; within the first half hour lenders had issued new rate sheets indicating an increase of nearly .250.
Basically it’s short term vs. long term. The Fed Funds Rate is a short term interest rate. The FFR is a base for the Prime rate, with 3% added. The rate is adjusted by the Federal Reserve Bank to help control inflation, to help balance prices & stimulate economic growth, and to provide the financial markets with liquidity. The cost of short term borrowing is adjusted.
It’s the mortgage-backed securities market that influences fixed mortgage rates, not the Fed. Generally they are 30 year bonds (at fixed or variable rates), and are considered as long-term products. Investors often move their money into the stock market and out of the mortgage bond market when the Fed cuts rates. It’s these daily ups and downs in the bond market that causes mortgage rates to fluctuate.
With the most recent cut, the Federal Fund Rate is at its 50 year low, and we see mortgage rates closing in on their 3 year high point.
The Fed hopes to stimulate the economy with lower rates. In the long run, a healthy economy positively impacts the real estate market and that benefits the mortgage market by keeping rates competitive. So there is an indirect influence, but no direct tie to one another.
Feedack is always welcome so please send us your comments. You can call me at 913-642-3334, email me at michele@wantinsight.com or post comments on the blog.
Michele A. "MAC" Cole
913-642-3334
www.wantinsight.com
Thursday, October 23, 2008
HAS THE HOUSING MARKET HIT BOTTOM?
ENCOURAGING NEWS IN KANSAS CITY HOMES MARKET
Want to generate a vigorous discussion at the office or over dinner with friends? Just ask the question: “has the housing market reached bottom yet?” Although the current outlook is a bit sour still, and no one is forecasting a fast national rebound, there are encouraging signs to be seen. The factors that inflated the bubble, speculative pricing and overbuilding, seem to be working their way through the system in various sections of the country.
The good news in Kansas City is that the area’s home sales were up in September and the inventory is down. The Kansas City Regional Association of Realtors reports a drop in new homes on the market. September saw 3,596 new homes listed, which was 27% fewer than in September 2007. And 15,284 existing homes were available in September, which was 7% lower than a year ago. The inventory of both new and existing homes for sale in September was 11% fewer than for the same period last year.
The KCRAR also reports a 15% increase in sales from a year ago for existing homes. The average price of an existing home is $142,966. This is 5% down from a year ago, while the average price of a new home was up 3%, to $291,243.
The Kansas City market is edging towards a balanced market (traditionally a 6 month inventory) with a 7.1 month supply of existing homes at this time. The formula is based on inventory divided by sales pace. The supply of new homes is a 12.5 month level.
It’s important to look at your local real estate market, not the national figures promoted in the media. The national sales figures quoted are brought down by the east & west coast boom and bust markets. (Phoenix, Las Vegas, Miami, So. California cities, etc) If the hard hit areas are removed from the statistical picture, the numbers are much more encouraging. And now that the government passed the recovery plan, the housing market could see an upswing with making borrowing a bit easier for buyers. Let us give you insight into today’s mortgage availability – there is money for purchases despite what the media indicates! Call me at 913-642-3334 or email your questions to michele@wantinsight.com.
A few other cities with an upturn:
Des Moines: After an agricultural debt crisis in the 1980’s, there was a successful push to diversify. There has been no run up, no crash, no flipping frenzy – just a steady demand for housing. Affordable homes, with the median price of $156,600.
Raleigh, NC: The city has been experiencing good job growth. The first quarter of 2008 saw the 5th highest total quarterly sales on record. And prices are up 3.5% over last year.
Salt Lake City: The metropolitan area has a diverse economy and shown steady jobs gains, which in turn provides a cushion under home prices. Salt Lake City County saw median prices rise April-June 2008 in 7 zip codes.
Some suburban areas of Denver and Philadelphia had even seen prices jump as much as 16%. Birmingham, AL has also weathered the slump with low labor and land costs. Some local areas have seen the median home price increase just under 5% in the first half of the year. There are other cities faring just as well across the nation. Real Estate is a LOCAL market. So take the national numbers with a grain of salt, and read the local news for an accurate view of your community marketplace.
So talk to your professional real estate agent to learn about your market conditions and give us a call at Insight Mortgage Group to discuss your financing options: Michele at 913-642-3334 or email me at michele@wantinsight.com.
Michele A. "MAC" Cole
913-642-3334
www.wantinsight.com
Want to generate a vigorous discussion at the office or over dinner with friends? Just ask the question: “has the housing market reached bottom yet?” Although the current outlook is a bit sour still, and no one is forecasting a fast national rebound, there are encouraging signs to be seen. The factors that inflated the bubble, speculative pricing and overbuilding, seem to be working their way through the system in various sections of the country.
The good news in Kansas City is that the area’s home sales were up in September and the inventory is down. The Kansas City Regional Association of Realtors reports a drop in new homes on the market. September saw 3,596 new homes listed, which was 27% fewer than in September 2007. And 15,284 existing homes were available in September, which was 7% lower than a year ago. The inventory of both new and existing homes for sale in September was 11% fewer than for the same period last year.
The KCRAR also reports a 15% increase in sales from a year ago for existing homes. The average price of an existing home is $142,966. This is 5% down from a year ago, while the average price of a new home was up 3%, to $291,243.
The Kansas City market is edging towards a balanced market (traditionally a 6 month inventory) with a 7.1 month supply of existing homes at this time. The formula is based on inventory divided by sales pace. The supply of new homes is a 12.5 month level.
It’s important to look at your local real estate market, not the national figures promoted in the media. The national sales figures quoted are brought down by the east & west coast boom and bust markets. (Phoenix, Las Vegas, Miami, So. California cities, etc) If the hard hit areas are removed from the statistical picture, the numbers are much more encouraging. And now that the government passed the recovery plan, the housing market could see an upswing with making borrowing a bit easier for buyers. Let us give you insight into today’s mortgage availability – there is money for purchases despite what the media indicates! Call me at 913-642-3334 or email your questions to michele@wantinsight.com.
A few other cities with an upturn:
Des Moines: After an agricultural debt crisis in the 1980’s, there was a successful push to diversify. There has been no run up, no crash, no flipping frenzy – just a steady demand for housing. Affordable homes, with the median price of $156,600.
Raleigh, NC: The city has been experiencing good job growth. The first quarter of 2008 saw the 5th highest total quarterly sales on record. And prices are up 3.5% over last year.
Salt Lake City: The metropolitan area has a diverse economy and shown steady jobs gains, which in turn provides a cushion under home prices. Salt Lake City County saw median prices rise April-June 2008 in 7 zip codes.
Some suburban areas of Denver and Philadelphia had even seen prices jump as much as 16%. Birmingham, AL has also weathered the slump with low labor and land costs. Some local areas have seen the median home price increase just under 5% in the first half of the year. There are other cities faring just as well across the nation. Real Estate is a LOCAL market. So take the national numbers with a grain of salt, and read the local news for an accurate view of your community marketplace.
So talk to your professional real estate agent to learn about your market conditions and give us a call at Insight Mortgage Group to discuss your financing options: Michele at 913-642-3334 or email me at michele@wantinsight.com.
Michele A. "MAC" Cole
913-642-3334
www.wantinsight.com
Monday, October 13, 2008
Kansas City Loans- ARM's Adjusting - Mortgage Money Still Out There
With the recent news of financial turmoil and tightening credit availability, many people are asking:
Are there still mortgages out there?
YES! Mortgage loans are still available in Kansas City.
Anyone that has reasonably good credit and is looking to purchase a home should be able to get a mortgage, as long as they have enough income to cover the loan. Seems simple enough, doesn't it? Unfortunately in recent years the limits were stretched for many buyers in order to get them into homes beyond their means. And now we're looking at a high rate of foreclosures across the country. Affordability is the key to a purchase. Currently in Kansas City it's a buyers market; it's an especially good time for first time buyers to purchase a home. Money is there for these purchases. Even if your credit scores are in the low 600's, there is mortgage money available.
There are 100% rural development loans available for people that are willing to live on the outskirts of town. These are 30 year fixed loans with no down payment and you might be surprised by some of the areas that qualify. VA loans are another possibility. FHA is still a good option for the home that is in move in condition.
If your credit scores are a little lower than you’d like, then find a good credit repair service and take a proactive approach in raising your score. We can recommend a few very good companies that will work with you on improving those scores in a timely manner. Feel free to call me at 913-642-3334 or email at michele@wantinsight.com.
What if you had an ARM (Adjustable Rate Mortgage) and you couldn’t refinance before the the ARM adjusts? This is the problem that a lot of people are facing today. They cannot refinance the mortgage that is ready to adjust, are unable to sell their home, and will not be able to afford the new payment. Where does this leave them? Are you, or anyone you know, in this situation? Give us your story. We also offer a product for note modification - if you are not able to refinance, maybe a modification would better help your situation?
Traditional advice says you should not spend more than a quarter of your monthly net income for housing. This still works and is more appropriate than ever before. Apply this rule to renting or buying. Additionally, a fixed rate, whether it is a 20 or 30 year mortgage, is a better option for financial stability.
Most of us may need to scale back and try to live within our means. This doesn't have to mean the end of your dream of becoming a homeowner, or "stepping up" to a larger home. It means making smarter decisions. Isn't a home that is truly affordable a much better choice than the "biggger, better, newer" house that straps you financially and is an emotional burden? The good news is that there is money available now and that you have a source for honest answers, compassion, and integrity in the loan process. So please
Feel free to call, visit my website, or email me at michele@wantinsight.com
Michele “MAC” Cole
913-642-3334
www.wantinsight.com
Are there still mortgages out there?
YES! Mortgage loans are still available in Kansas City.
Anyone that has reasonably good credit and is looking to purchase a home should be able to get a mortgage, as long as they have enough income to cover the loan. Seems simple enough, doesn't it? Unfortunately in recent years the limits were stretched for many buyers in order to get them into homes beyond their means. And now we're looking at a high rate of foreclosures across the country. Affordability is the key to a purchase. Currently in Kansas City it's a buyers market; it's an especially good time for first time buyers to purchase a home. Money is there for these purchases. Even if your credit scores are in the low 600's, there is mortgage money available.
There are 100% rural development loans available for people that are willing to live on the outskirts of town. These are 30 year fixed loans with no down payment and you might be surprised by some of the areas that qualify. VA loans are another possibility. FHA is still a good option for the home that is in move in condition.
If your credit scores are a little lower than you’d like, then find a good credit repair service and take a proactive approach in raising your score. We can recommend a few very good companies that will work with you on improving those scores in a timely manner. Feel free to call me at 913-642-3334 or email at michele@wantinsight.com.
What if you had an ARM (Adjustable Rate Mortgage) and you couldn’t refinance before the the ARM adjusts? This is the problem that a lot of people are facing today. They cannot refinance the mortgage that is ready to adjust, are unable to sell their home, and will not be able to afford the new payment. Where does this leave them? Are you, or anyone you know, in this situation? Give us your story. We also offer a product for note modification - if you are not able to refinance, maybe a modification would better help your situation?
Traditional advice says you should not spend more than a quarter of your monthly net income for housing. This still works and is more appropriate than ever before. Apply this rule to renting or buying. Additionally, a fixed rate, whether it is a 20 or 30 year mortgage, is a better option for financial stability.
Most of us may need to scale back and try to live within our means. This doesn't have to mean the end of your dream of becoming a homeowner, or "stepping up" to a larger home. It means making smarter decisions. Isn't a home that is truly affordable a much better choice than the "biggger, better, newer" house that straps you financially and is an emotional burden? The good news is that there is money available now and that you have a source for honest answers, compassion, and integrity in the loan process. So please
Feel free to call, visit my website, or email me at michele@wantinsight.com
Michele “MAC” Cole
913-642-3334
www.wantinsight.com
Friday, October 3, 2008
MORTGAGE RELIEF PROGRAM
MORTGAGE RELIEF PROGRAM
On Wednesday, Oct.1, a government program took effect which will change the financial picture of many home purchasers and homeowners.
A program, known as ‘Hope for Homeowners’, is part of a huge housing bill passed this summer by Congress, as an effort to help alleviate the mortgage crisis. Its goal is to prevent foreclosures by allowing borrowers in default, and those in
distress, close to default, to refinance their mortgages to more affordable loans.
$300 billion is allocated for the refinance to fixed rate FHA insured loans, at no more than 90% of current market value. Also, borrowers mortgage payments must exceed 31% of their income to qualify. NOTE: loans originated in 2008, except Jan 1 are excluded. Additionally, 6 months of payments must have been made by borrowers.
But, the impact on the foreclosure rate is questionable, as lenders are not required to participate in the program. The lenders actually take a loss on the original loans. However, lenders from the top mortgage businesses indicated they’re adding new staff to assist the implementation of the program.
Other noteworthy issues addressed:
• Seller funded down payment assistance programs for FHA loans have been eliminated.This will practically eliminate no down payment offers. This ban was requested by the FHA, citing the 3 times higher default rate for down payment assisted loans over the traditional FHA loans. Also, they feel market values are inflated with those programs.
• A one-year freeze on “risk-based” FHA loan insurance premiums is in effect. The risk-based program charged borrowers on the basis of the likelihood of the loan repayment.
• FHA-insured loans on condominiums has been streamlined.
• The FHA loan process for manufactured homes has been reformed.
• A new program has been put in place for generating alternative credit-rating information for people with little credit history.
• Reverse-mortgage borrowers are affected by a requirement for “adequate counseling” from a third party not tied to the lender. The government, with funds from mortgage insurance premiums, can create a counseling program.
• Possible conflicts of interest will be reduced due to reverse-mortgage loan originators being forbidden from selling annuities, insurance or other financial products.
• A cap of $6000 was placed on origination fees, and can be adjusted periodically for inflation.
If you have questions or comments, please call me or email me at 913-642-3334 or michele@wantinsight.com
Michele “MAC” A. Cole
913-642-3334
www.wantinsight.com
On Wednesday, Oct.1, a government program took effect which will change the financial picture of many home purchasers and homeowners.
A program, known as ‘Hope for Homeowners’, is part of a huge housing bill passed this summer by Congress, as an effort to help alleviate the mortgage crisis. Its goal is to prevent foreclosures by allowing borrowers in default, and those in
distress, close to default, to refinance their mortgages to more affordable loans.
$300 billion is allocated for the refinance to fixed rate FHA insured loans, at no more than 90% of current market value. Also, borrowers mortgage payments must exceed 31% of their income to qualify. NOTE: loans originated in 2008, except Jan 1 are excluded. Additionally, 6 months of payments must have been made by borrowers.
But, the impact on the foreclosure rate is questionable, as lenders are not required to participate in the program. The lenders actually take a loss on the original loans. However, lenders from the top mortgage businesses indicated they’re adding new staff to assist the implementation of the program.
Other noteworthy issues addressed:
• Seller funded down payment assistance programs for FHA loans have been eliminated.This will practically eliminate no down payment offers. This ban was requested by the FHA, citing the 3 times higher default rate for down payment assisted loans over the traditional FHA loans. Also, they feel market values are inflated with those programs.
• A one-year freeze on “risk-based” FHA loan insurance premiums is in effect. The risk-based program charged borrowers on the basis of the likelihood of the loan repayment.
• FHA-insured loans on condominiums has been streamlined.
• The FHA loan process for manufactured homes has been reformed.
• A new program has been put in place for generating alternative credit-rating information for people with little credit history.
• Reverse-mortgage borrowers are affected by a requirement for “adequate counseling” from a third party not tied to the lender. The government, with funds from mortgage insurance premiums, can create a counseling program.
• Possible conflicts of interest will be reduced due to reverse-mortgage loan originators being forbidden from selling annuities, insurance or other financial products.
• A cap of $6000 was placed on origination fees, and can be adjusted periodically for inflation.
If you have questions or comments, please call me or email me at 913-642-3334 or michele@wantinsight.com
Michele “MAC” A. Cole
913-642-3334
www.wantinsight.com
Tuesday, September 30, 2008
Bailout not approved. Why? Is this good or bad?
The $700 billion bailout bill was defeated by a 228 to 205 vote. What happened? Is this a good thing or a bad thing?
How defeated?
Two thirds of the House Republicans voted against the bailout bill, while in comparison, 60% of the Democrats voted for it. This is an interesting defeat since the Bush Administration put this plan together and it was also supported by John McCain.
Another round?
President Bush and congressional leaders are determined to bring the bill back again for another vote; hopefully later this week. Congress was to adjourn this week until after the election, but it looks as if they will all be back by the end of the week. It is unclear as to what the markets will do as the week progresses.
Five courses of action in the plan
• Free up credit - Primary goal is to make it easier for individuals and business to start getting credit again.
• Modify loans - Goal is for the Treasury to modify difficult loans.
• Accountability - The Treasury will be forced to report on their spending of the $700 billion.
• Executive benefits limited- Companies who participate in getting bailed out will lose certain tax benefits. This will limit some executive compensation.
• Taxpayer benefits received- Companies that participate in the bailout must provide compensation that benefit taxpayers once the company heads in a positive direction.
These courses of action sound like reasonable goals. For now they are on hold, but let’s look at the short term effects that have occurred so far because of the defeat, and the long term effects that appear to be on the horizon.
Short term effects
The Dow Jones Industrial Average plummeting more than 700 points yesterday. This was the largest one-day point drop ever. The short-term effects are not good at all. There was an immediate effect in the confidence of the worldwide financial system. Long-term effects might be better.
Long term effects positive and negative
Longer-term, it actually could be positive since it somewhat protects the Federal Government’s balance sheet. The Federal Government may already be looking at trillions of losses because of the FDIC, Fannie, Freddie, the Federal Reserve and the Federal Home Loan Banks. Does the Federal Government need another $700 billion in debt? Give us your comments. We’d love to hear from you.
On the negative side, it is possible there could be a worldwide run on the dollar. Currently, people are running to buy U.S. treasuries. They are perceived to be the safest investment in the world. But dollar assets could fall rapidly once it becomes apparent that the U.S. government is printing a huge amount of currency to pay off its debts.
Advice
The future of the worldwide financial system is looking doubtful. There are different theories out there as to how to protect yourself while the economy is so volatile. Some Wall Street professionals have advised clients to take cash out of their bank accounts and keep it in a safe place. Two months expenses are the goal. Others say to hold on and wait for the craziness to pass.
None of us really know what direction the U.S. economy will head from here. It is a guessing game. Things seem to change rapidly. Feel free to give me a call or email me at 913-642-3334 or michele@wantinsight.com.
Michele “MAC” Cole
913-642-3334
www.wantinsight.com
How defeated?
Two thirds of the House Republicans voted against the bailout bill, while in comparison, 60% of the Democrats voted for it. This is an interesting defeat since the Bush Administration put this plan together and it was also supported by John McCain.
Another round?
President Bush and congressional leaders are determined to bring the bill back again for another vote; hopefully later this week. Congress was to adjourn this week until after the election, but it looks as if they will all be back by the end of the week. It is unclear as to what the markets will do as the week progresses.
Five courses of action in the plan
• Free up credit - Primary goal is to make it easier for individuals and business to start getting credit again.
• Modify loans - Goal is for the Treasury to modify difficult loans.
• Accountability - The Treasury will be forced to report on their spending of the $700 billion.
• Executive benefits limited- Companies who participate in getting bailed out will lose certain tax benefits. This will limit some executive compensation.
• Taxpayer benefits received- Companies that participate in the bailout must provide compensation that benefit taxpayers once the company heads in a positive direction.
These courses of action sound like reasonable goals. For now they are on hold, but let’s look at the short term effects that have occurred so far because of the defeat, and the long term effects that appear to be on the horizon.
Short term effects
The Dow Jones Industrial Average plummeting more than 700 points yesterday. This was the largest one-day point drop ever. The short-term effects are not good at all. There was an immediate effect in the confidence of the worldwide financial system. Long-term effects might be better.
Long term effects positive and negative
Longer-term, it actually could be positive since it somewhat protects the Federal Government’s balance sheet. The Federal Government may already be looking at trillions of losses because of the FDIC, Fannie, Freddie, the Federal Reserve and the Federal Home Loan Banks. Does the Federal Government need another $700 billion in debt? Give us your comments. We’d love to hear from you.
On the negative side, it is possible there could be a worldwide run on the dollar. Currently, people are running to buy U.S. treasuries. They are perceived to be the safest investment in the world. But dollar assets could fall rapidly once it becomes apparent that the U.S. government is printing a huge amount of currency to pay off its debts.
Advice
The future of the worldwide financial system is looking doubtful. There are different theories out there as to how to protect yourself while the economy is so volatile. Some Wall Street professionals have advised clients to take cash out of their bank accounts and keep it in a safe place. Two months expenses are the goal. Others say to hold on and wait for the craziness to pass.
None of us really know what direction the U.S. economy will head from here. It is a guessing game. Things seem to change rapidly. Feel free to give me a call or email me at 913-642-3334 or michele@wantinsight.com.
Michele “MAC” Cole
913-642-3334
www.wantinsight.com
Thursday, September 25, 2008
Federal Reserve leaves funds rate at 2%
The Federal Reserve Board has once again decided to leave a key interest rate untouched. What is their reasoning behind this?
Existing Pressures
In its press release, the Fed pointed out the already existing pressures on Wall Street, employment, household spending, and inflation:
• On Wall Street: Strains have "increased significantly"
• On Employment: The workforce has "weakened further"
• On Household Spending: It's "softening"
• On Inflation: It's "been high"
The Fed believes though, that the combined impact of these pressures will eventually die down by both prior rate cuts, and market forces. Let’s not forget, that just last August, the Fed Funds Rate was 5.250 percent and the Fed wants to avoid over stimulating the economy. Too many rate cuts could be counterproductive and detrimental in the long run.
Injecting Money
The Federal Reserve controls the supply of money and its cost by injecting funds or taking funds out of the banking system. The Fed has already recently injected $50 billion to curtail instability brought on by the collapse of Lehman Brothers and the problems of American Insurance Group.
Fed helps bring liquidity
• The Fed buys government securities from banks in exchange for lending them money, in order to increase the money supply and make money easier to borrow.
• Banks that borrow the money, then lend money to other lending institutions.
• The other institutions lend to consumers.
Theory
Part of the economic theory behind leaving the rate unchanged, is because the Fed does not want to create the sense that it is going to rescue more struggling companies. Could this affect risky decisions made by large companies if they felt the government would bail them out if needed?? Give us your comments.
Economic growth over the next few quarters is likely to remain flat, but over time, the considerable easing of monetary policy, combined with continuous plans to promote market liquidity, should help to encourage moderate economic growth. Do you think it makes sense to leave the rate at 2%?
If you're wanting a plan to monitor and lock-in great rate dips like the ones we’ve been seeing off and on, get in touch with us and we’ll walk you through the process to capture a low mortgage rate when it presents itself. Call us at 913-642-3334 or email at michele@wantinsight.com.
Michele “MAC” Cole
913-642-3334
www.wantinsight.com
Existing Pressures
In its press release, the Fed pointed out the already existing pressures on Wall Street, employment, household spending, and inflation:
• On Wall Street: Strains have "increased significantly"
• On Employment: The workforce has "weakened further"
• On Household Spending: It's "softening"
• On Inflation: It's "been high"
The Fed believes though, that the combined impact of these pressures will eventually die down by both prior rate cuts, and market forces. Let’s not forget, that just last August, the Fed Funds Rate was 5.250 percent and the Fed wants to avoid over stimulating the economy. Too many rate cuts could be counterproductive and detrimental in the long run.
Injecting Money
The Federal Reserve controls the supply of money and its cost by injecting funds or taking funds out of the banking system. The Fed has already recently injected $50 billion to curtail instability brought on by the collapse of Lehman Brothers and the problems of American Insurance Group.
Fed helps bring liquidity
• The Fed buys government securities from banks in exchange for lending them money, in order to increase the money supply and make money easier to borrow.
• Banks that borrow the money, then lend money to other lending institutions.
• The other institutions lend to consumers.
Theory
Part of the economic theory behind leaving the rate unchanged, is because the Fed does not want to create the sense that it is going to rescue more struggling companies. Could this affect risky decisions made by large companies if they felt the government would bail them out if needed?? Give us your comments.
Economic growth over the next few quarters is likely to remain flat, but over time, the considerable easing of monetary policy, combined with continuous plans to promote market liquidity, should help to encourage moderate economic growth. Do you think it makes sense to leave the rate at 2%?
If you're wanting a plan to monitor and lock-in great rate dips like the ones we’ve been seeing off and on, get in touch with us and we’ll walk you through the process to capture a low mortgage rate when it presents itself. Call us at 913-642-3334 or email at michele@wantinsight.com.
Michele “MAC” Cole
913-642-3334
www.wantinsight.com
Tuesday, September 23, 2008
Fed throws out an $85B Life Preserver to AIG
The Federal Reserve provided the largest government bailout of a private company in U.S. financial history. They provided AIG with $85 billion in emergency loans to rescue them from bankruptcy in exchange for almost an 80% claim in AIG. The loan provided was at a very high interest rate and AIG’s entire assets were used as collateral.
Reactions from large newspapers
On its front page, the New York Times calls the government's move "the most radical intervention in private business in the central bank's history," a step taken "to avert a possible financial crisis worldwide." The Washington Post calls the Fed's move "a stunning turnaround," while USA Today says it was a "stunning decision," coming "just days after the Treasury and Fed refused to bail out investment bank Lehman Bros., which filed Monday for the largest bankruptcy ever." The Los Angeles Times calls the move "the largest single financial intervention in the nation's history and a measure of the depths of America's financial crisis."
Does this feel like an indication of the continuing uncertainty in the financial sector? Give us your comments….
Possible implications
It is a little unsettling thinking about how detrimental this could be to corporations around the world. They could get hit with billions of dollars in losses if AIG is allowed to fail.
Keep in mind, that AIG is bigger than Fannie Mae, Freddie Mac, Merrill Lynch, Lehman Brothers or the former Bear Stearns. Analysts have been saying that most of AIG’s businesses are in decent financial shape on their own, but the events of Wall Street are the cause of AIG’s problems. This bailout weakens AIG’s current stockholders a great deal but does not wipe them out completely.
Why the bailout?
The decision to rescue AIG was a remarkable turnaround from what government officials had said just a few days earlier. AIG has extensive ties to the struggling U.S. financial system already, so they needed to come to AIG's rescue in order to help stabilization. The federal government determined that AIG was too big to fail and needed to be rescued. These steps were taken in order to promote stability in financial markets and limit the danger to the broader economy.
Is it possible that without this radical intervention, that it may have averted a possible worldwide financial crisis? What do you think?
Feel free to call or email me at www.michele@wantinsight.com
Michele “MAC” Cole
913-642-3334
www.wantinsight.com
Reactions from large newspapers
On its front page, the New York Times calls the government's move "the most radical intervention in private business in the central bank's history," a step taken "to avert a possible financial crisis worldwide." The Washington Post calls the Fed's move "a stunning turnaround," while USA Today says it was a "stunning decision," coming "just days after the Treasury and Fed refused to bail out investment bank Lehman Bros., which filed Monday for the largest bankruptcy ever." The Los Angeles Times calls the move "the largest single financial intervention in the nation's history and a measure of the depths of America's financial crisis."
Does this feel like an indication of the continuing uncertainty in the financial sector? Give us your comments….
Possible implications
It is a little unsettling thinking about how detrimental this could be to corporations around the world. They could get hit with billions of dollars in losses if AIG is allowed to fail.
Keep in mind, that AIG is bigger than Fannie Mae, Freddie Mac, Merrill Lynch, Lehman Brothers or the former Bear Stearns. Analysts have been saying that most of AIG’s businesses are in decent financial shape on their own, but the events of Wall Street are the cause of AIG’s problems. This bailout weakens AIG’s current stockholders a great deal but does not wipe them out completely.
Why the bailout?
The decision to rescue AIG was a remarkable turnaround from what government officials had said just a few days earlier. AIG has extensive ties to the struggling U.S. financial system already, so they needed to come to AIG's rescue in order to help stabilization. The federal government determined that AIG was too big to fail and needed to be rescued. These steps were taken in order to promote stability in financial markets and limit the danger to the broader economy.
Is it possible that without this radical intervention, that it may have averted a possible worldwide financial crisis? What do you think?
Feel free to call or email me at www.michele@wantinsight.com
Michele “MAC” Cole
913-642-3334
www.wantinsight.com
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