Making The Best Use of The "Tools" in Your Toolbox
Current mood: contemplative
Category: Jobs, Work, Careers

This past spring I took on the enormous task of project manager for the city wide membership drive for BNI (Business Network Int'l). www.bni.com

Toward the end of the drive (end of May), I found myself kvetching w/ my counterpart in El Paso Texas. We discussed what appeared to work, what didn't, and why we thought so.

The Texan relayed an insight to me in conversation which later hit me over the head - you can call it my "AH-HA" moment if you want.

Basically, he was touting the side benefits of inviting business folk to check out BNI ... whether they came to the visitor's day or they didn't, he had opened a doorway for them to expand their contact spheres & opportunities to conduct more business. The side benefit was that since he had already established a rapport w/ these invitees through invitation letters & follow-up phone calls, this had opened a doorway for him to make sales calls on these folk.

He had opened a savings account called "social capital", and was steadily putting away a few cents here, and a few cents there. If you are unfamiliar with this term, I suggest you check out www.entrepreneur.com, and do an advanced search under archive blogs & Dr. Ivan Misner, founder of BNI.

I'm intrigued to find out "what happened next?" with the Texan... stay tuned - I'll share, alright?

Melinda Potcher

www.bniNewMexico.com

www.HomeLoansAlbuquerque.com

Currently listening : Goodbye Jumbo By World Party Release date: 2006-04-04

Now is The Time...

To Invest In Your Child's Future

The FHA Lending Limit is currently $271,050 in the Albuquerque Metro. For less than $200,000, you could invest in Residential Real Estate for your Child's Future. If you have kids heading to college in the next 2 years, why not buy the house or condo and know your child is safe & you are controlling the property?

Jimmy or Susie can also get a roommate or roommates to offset the mortgage payment, and in 5 years, you can either turn the property over to your now graduated adult child, or they can sell it for the equity it has acquired (currently 6% appreciation on average, more in the UNM/NobHill/Ridgecrest/Downtown areas), or continue to use it as a rental property, providing monthly cash flow & income for your family.

Example: purchase a 3 bedroom 2 bathroom property for $200,000. The down payment is 3%, or $6000.00. The monthly mortgage payment would be based on a loan amount of $194,000 in this example, and let's estimate the interest rate would be 6.25%. The payment would be around $1250 a month, with taxes & insurance. Again, take into consideration your student would have 2 roommates paying each $500 a month, and now your student or you are responsible for paying $250 a month toward the mortgage along with the $1000 from the other roommates.

After 5 years, you will have paid down the mortgage about $10,000. The property would have appreciated using the minimum of 6% per year or $67,645, giving your property a new value of $267,645, and a mortgage balance of approximately $184,000, giving you a gross equity of $83,645!

What if you have multiple children going to school over the next few years? Think about having them live in the property you co-sign for definitely would be cheaper than renting.

So what if your student rented? Taking that same payment of $1250 a month, over a 4 year college degree term, that rent would add up to $60,000 - all down the drain and paying a landlord's mortgage payment instead of creating equity for you and your student. And let's say I'm wrong - let's take half that payment of $1250 or $625 a month, pretty reasonable rent that your student would pay, and again, that's a loss of $30,000 paying rent.

The Equity is a Savings Account for you and your student! You would also realize the following;

* Educating the next generation in Investing & Credit Usage

* Feel safe knowing your student is paying you, not a landlord the rent

* Roommates can offset monthly mortgage payment

* Security, Safety, Savings

For more information, call me today - Melinda Potcher, Mortgage Maven

Direct: (505) 259-5397

Email: Melinda@TrinityMTG.biz

website: www.HomeLoansAlbuquerque.com

Effective for all registrations after Friday, April 4th, another lender is eliminating the Agency Shortcut Mortgage program.


All Agency Shortcut mortgages must be registered no later than Friday, April 4th. We will not accept any registrations on the Shortcut program after this date. There is no lock cut off date as of yet, however all Agency Shortcut Mortgages must close and fund no later than April 30th. No relocks or extensions will be granted.



As an alternative to the Shortcut, I've included a couple of options to consider:

1) Agency "Limited Doc" -Best pricing: Borrower's who have at least a 680 middle credit score, may receive a "verbal VOE (verification of employment) only" or "evidence of existence of business only" option when running DU (desktop underwriter) or LP (loan prospector). WE will honor these findings, and will NOT require income documenation, since these loans are still considered full doc in the investor's eyes. If your borrower has at least a 680 score and they need a "limited doc" option, we recommend running DU or LP to determine if your customer is eligible.



2) Agency Express - Stated income/Verified Assets. Manual underwrite. Self employed borrowers or borrowers who's earnings consist of at least 50% commission can qualify on this program. All occupancy types are eligible. Cash out (O/O (owner occupied), 2nd home only), Rate & term refinance and Purchase. LTV's (loan to value) up to 90%. Fico credit score requirement 680 -720 depending on transaction type and LTV. Contact me for further info.


www.HomeLoansAlbuquerque.com

melinda@trinitymtg.biz

FHA Product Updates

Effective for all FHA loans registered and/or locked after today, Friday, March 28, minimum FICO scores will apply in all instances regardless of AUS (Automated Underwriting System) decision. Extensions will not be granted.

See the chart below for minimum FICO score requirements for all AUS FHA loans*.

Transaction Type

Minimum FICO

Purchase & R/T Refinance

580

Cash-out Refinance LTV < 85%

580

Cash-out Refinance LTV > 85%

600

Streamline Refinance

580

*

ALL LOANS THAT WILL BE AFFECTED BY THESE CHANGES MUST BE LOCKED IN NO LATER THAN FRIDAY, MARCH 21, 2008. NO EXTENSIONS OR RELOCKS WILL BE GRANTED

IMPORTANT INFORMATION REGARDING UPCOMING AGENCY UPDATES - Elimination of LTVs 97.01-100%, Revised Minimum Credit Score Requirements and Cash-Out Refinance Eligibility for Transactions Requiring Mortgage Insurance

Due to continued mortgage insurance (MI) company product eligibility pull backs, we must implement the changes outlined below for our conventional Agency loan programs. These changes will be effective for locks on or after Friday, March 21, 2008. All loans that are locked PRIOR to March 21, 2008 will be honored; however, must be closed and funded by their original lock expiration dates. Please review your pipeline carefully to confirm if they are any loans that need to be reviewed and submitted to a MI company for MI commitment. Please note the commitment is based on the data submitted so in all cases please confirm accuracy of the information PRIOR to requesting MI. Lock-in extensions and re-locks will NOT be granted.

* The maximum allowable LTV will be reduced to 97%, regardless of the AUS approval As a result, the Fannie Mae Flexible 100, MyCommunity 100 and Teacher, HealthCare Worker & Safety 1st 100 loan programs are being eliminated.

* For all traditionally underwritten, DU "Approve/Eligible" and LP "Accept/Eligible" cash-out refinance transactions, a minimum 680 credit score (for ALL borrowers) will be required for LTVs greater than 80%, regardless of the AUS approval.

* For all traditionally underwritten and AUS (DU and LP) processed investment property transactions, a minimum 660 credit score (for ALL borrowers) will be required for LTVs greater than 80%, regardless of the AUS approval.

UPDATES TO THE PORTFOLIO LIBOR ARMS AND KEY JUMBO LOAN PROGRAMS - Incorporation of Previously Announced Updates and Miscellaneous Clarifications

The Portfolio LIBOR ARMs and Key Jumbo product descriptions are being been revised to incorporate the following updates and clarifications:

* elimination of the primary wage earner's credit score for credit and pricing qualification,

* elimination of the Interest Only feature for all 3-4 unit properties,

* increase in the minimum credit score requirement and decrease in maximum cash-out at certain LTV/TLTV loan amount combinations on primary residence cash-out refinance transactions and second home transactions,

* elimination of the 85% LTV on second home cash-out transactions,

* clarification that if the borrower owns their residence free and clear, a twelve (12) month verification of mortgage is not required, and

* clarification regarding the qualifying rate for transactions with trailing co-borrower income under the Portfolio LIBOR ARMs loan program.

Updates- Important!.

In response to the continued deterioration of credit quality and declining home values in most areas of the country, Freddie Mac is eliminating the higher risk Freddie Mac 100 loan program. As a result of this change, effective for locks on or after Monday, March 17, 2008, the Freddie Mac 100 loan program is being eliminated. All loans that are locked PRIOR to March 17, 2008 will be honored; however, these loans must be closed and funded by May 15, 2008. Lock-in extensions and re-locks will NOT be granted. PLEASE NOTE THE FNMA FLEX 100% & MY COMMUNITY PROGRAMS ARE STILL AVAILABLE

Due to continued mortgage insurance (MI) company product eligibility pull backs, we must implement the new minimum credit score requirements and cash-out refinance eligibility changes outlined below for our conventional Agency loan programs. These changes will be effective for locks on or after Friday, March 14, 2008. All loans that are locked PRIOR to March 14, 2008 will be honored; however, must be closed and funded by their original lock expiration dates. Lock-in extensions and re-locks will NOT be granted.

· For ALL traditionally underwritten, DU Approve/Eligible and LP Accept/Eligible Agency loan transactions:

· a minimum 620 credit score (for ALL borrowers) will be required for LTVs 80.01-95%, regardless of the AUS approval, and

· a minimum 680 credit score (for ALL borrowers) will be required for LTVs 95.01-100%, regardless of the AUS approval.-- THIS INCLUDES FNMA MY COMMUNITY & FLEX 97% & 100% PROGRAMS

· The maximum LTV on 1 unit second home cash-out refinance transactions will be reduced to 80%. Maximum allowable TLTVs remain unchanged.

At this time, all other minimum credit score requirements (i.e., for LTVs 80% or less, etc.) remain unchanged.

All combo 2^nd mortgages now must be locked in no later than close of business day on Wednesday, March 12^th. These locks will be honored, however, must be closed and funded no later than March 31, 2008. THE FLEX EQUITY LINE PROGRAM IS NOT AFFECTED BY THESE COMBO 2^ND CHANGES.

The real estate adage is location, location, location.

If you're looking for a job, you want to be in a state that has an unemployment rate lower than the national average, which is 5% according to teh most recent data from the Bureau of Labor Statistics (BLS).

Here are the 15 best states to find work ranked by their unemployment rates.

NEW MEXICO IS RATED #11
1. South Dakota
Unemployment rate: 3 percent*
Population: 796,214**
Mean annual wage: $30,460
Top industry: Trade, transportation and utilities (19.9 percent)***

2. Idaho
Unemployment rate: 3 percent
Population: 1,499,402
Mean annual wage: $34,810
Top industry: Trade, transportation and utilities (20.2 percent)

3. Wyoming
Unemployment rate: 3.1 percent
Population: 522,830
Mean annual wage: $34,290
Top industry: Government (23 percent)

4. Nebraska
Unemployment rate: 3.2 percent
Population: 1,774,571
Mean annual wage: $34,300
Top industry: Trade, transportation and utilities (21.1 percent)

5. Utah
Unemployment rate: 3.2 percent
Population: 2,645,330
Mean annual wage: $35,540
Top industry: Trade, transportation and utilities (19.7 percent)

6. Hawaii
Unemployment rate: 3.2 percent
Population: 1,283,388
Mean annual wage: $38,630
Top industry: Government (19.6 percent)

7. North Dakota
Unemployment rate: 3.3 percent
Population: 639,715
Mean annual wage: $32,440
Top industry: Trade, transportation and utilities (21.4 percent)

8. Virginia
Unemployment rate: 3.5 percent
Population: 7,712,091
Mean annual wage: $41,450
Top industry: Government (18 percent)

9. Montana
Unemployment rate: 3.6 percent
Population: 957,861
Mean annual wage: $31,290
Top industry: Trade, transportation and utilities (20.5 percent)

10. New Hampshire
Unemployment rate: 3.6 percent
Population: 1,315,828
Mean annual wage: $39,250
Top industry: Trade, transportation and utilities (23.3 percent)

11. New Mexico
Unemployment rate: 3.7 percent
Population: 1,969,915
Mean annual wage: $33,980
Top industry: Government (23.2 percent)

12. Delaware
Unemployment rate: 3.8 percent
Population: 864,764
Mean annual wage: $41,680
Top industry: Trade, transportation and utilities (18.7 percent)

13. Maryland
Unemployment rate: 3.8 percent
Population: 5,618,344
Mean annual wage: $44,030
Top industry: Government (18.2 percent)

14. Iowa
Unemployment rate: 4 percent
Population: 2,988,046
Mean annual wage: $33,250
Top industry: Trade, transportation and utilities (20.4 percent)

15. Vermont
Unemployment rate: 4 percent
Population: 621,254
Mean annual wage: $36,350
Top industry: Trade, transportation and utilities (19.4 percent)

NEW MEXICO IS RATED #11

Posted by mpotcher, filed under Adjustable Rate Mortgages. Date: February 19, 2008, 11:39 pm | Edit|

www.HomeLoansAlbuquerque.com

Albuquerque, New Mexico is Housing Predictor's selection for the #1 spot on the Top 10 List. Albuquerque is growing like never before, attracting the movie business from Hollywood, a new airplane factory and many other new businesses, like Schott (Solar Power) and Fidelity Investments.

The median price for a home in Albuquerque is $194,000. The 2007 appreciation for homes in Albuquerque was 9.1%.

The selection is based on surveys conducted on 75 market conditions, sales velocity, pricing and 20 other factors.

Five Texas markets are included on the list, including McAllen, which placed 2nd. In early 2006 Housing Predictor forecasted the current boom in Texas.

Salt Lake City Utah placed third.

for more information on the Hottest 10 Buyers Markets, go to http://www.housingpredictor.com/hottest.html

For more information on Albuquerque Real Estate Financing, go to www.HomeLoansAlbuquerque.com

I have a client, let's call her Heidi. Heidi is a very successful business owner who needed to refinance her home in order to pull out equity to use in her business expansion plan. Her accountant counseled her that utilitizing her home's equity would cost less in interest, and would be less of a hassle to obtain than an SBA loan.

Let me show you how this scenario played out, and why if you want to work with a mortgage professional, my advice would be that you CHOOSE ME.

Heidi's current loan is a 30 year fixed at 6.75%. She owes $188k on a $300k appraised value home. Heidi wants to pull out $35,000 of equity. Because rates are so good right now, we can get her 5.125% on a 30 year fixed. The lower rate and cash out result in a payment that is only $33 more than what she is currently paying in a monthly payment.

Pretty cool, right? But wait, it gets better.

If Heidi could handle the payment shock, I advised her to refinance to a 15 year loan at 4.75% instead. why? Not only does she pay off the loan in half the time and get an interest rate below 5% (HELLO), but she will save over $128,000 in interest payments over the life of the loan. Yes, you heard me correctly. The cost of interest on the 30 year loan at 5.125% over time will be $220,835.19. The cost of the interest on the 15 year loan at 4.75% over time will be $92,022.74

Now you may be a skeptic like me and say, well, what's it going to cost me as far as a monthly payment? Glad you asked, that is a great question. Heidi will pay $1,252.32 a month in Principal & Interest (P&I) for the 30 year loan at 5.125%. On the 15 year loan at 4.75% Heidi will pay a monthly P&I of $1,789.01. The difference in the monthly payment is $536.69, which is a stretch for some people, but if you can handle the payment shock, I advise you to look back one paragraph and see the big picture. Over the life of the loan, you will save more than $128,000 of your hard earned money if you go with the 15 year loan vs. the 30 year loan.

Seems like a no brainer to me. If you'd like the real deal with a no-nonsense, give you all your options professional mortgage broker, give me a call today. I will make sure you know all your options upfront so that you can make an educated decision before you refinance your mortgage.

Melinda Potcher, Mortgage Broker, Trinity Mortgage, LLC www.HomeLoansAlbuquerque.com