About Archuleta County, CO

As a REALTOR® operating in Pagosa Springs, my business is tied very closely to the mortgage industry. The shifting tides of rates and corrections have left me dependent on my "daily fix" via the Internet to try and maintain some understanding of current mortgage conditions.

Thankfully, I don't have to go this alone. Recent news of fairly significant rate changes whet my appetite enough to seek out someone who really knows what's going on. Kathie Lattin of First Southwest Bank was gracious enough to give me a few minutes of her time this week. Kathie is the vice President of First Southwest Bank and has been with them for 17 years. The following is from an interview with her:

Chris: "Kathie could you give us an overview of what has happened in the last few years in the mortgage industry?"

Kathie: "We hit the big turbulence when the sub-prime market dropped - because too many people over-borrowed for their ability, which has really hurt the housing market. There are a lot of houses out there for sale. The inventory is available but the qualified buyers are becoming more picky.

"The programs have all changed. Obtaining the 100% financing is getting a lot tougher. Mortgage insurance and extra costs are still appropriate to what you are doing. You can do 80/20 purchases or 90/10, whatever you want to do, but a lot of them aren't offering second mortgages anymore - so you can't do a first/second combination. Most of them only go up to 90% on the first. So to get the 100% you usually have to go to an in-house portfolio or have mortgage insurance."

Chris: "I understand that last week the long term mortgage rate dropped. Can you give me a basic scenario of what that means for the borrower on a $350,000 home."

Kathie: "This rate drop was put into place to help stabilize the core market. Last week with an interest rate of 6.25% a borrower would have made a principal and interest payment of $2,155, where today with a 1% origination fee your looking at about 5.5% which drops that payment down to $1,987. So we are seeing significant monthly payment changes from the interest rate drop."

Chris: "The big news this morning is that the Federal Reserve cut the short term interest rates by 75 basis points. Will that have any effect on long term mortgage rates?"

Kathie: "Not on long term mortgages, but on short term borrowing. The cut was made in hopes that consumers will get out there and borrow more short term money- your credit card, in house accounts, home equity line of credit and that sort of thing. If they pull it down then people can therefore buy more and get the economy back going.

Chris: "It seems that I am starting to see more attention on some of the homes between about $200,00 and $250,000 in the recent weeks. Can you offer any reason for this concerning mortgages?"

Kathie: "We are seeing a shift in the people that are able to qualify for these loans. Rates are coming down. We are at a low even for what it was two years ago...so this is making those loans available. What we have to do as REALTORS® and Lenders is consciously put the right person in the right home. Not over extend them, we can almost qualify them for anything. The 100% is still out there but we need to know they can truly afford this so that were not flipping or doing foreclosures a year or two from now. We have to justify to our customers, we are here for the long haul."

Chris: "For the borrower with an average credit score what rate can you give them right now?"

Kathie: " Probably 5.875% with no origination fee and 5.5% with an origination on a 30 year fixed rate mortgage."

Thanks to Kathie Lattin for her expert insight into the mortgage industry. I highly recommend her for her professional efficiency and strait answers when it comes to home loans. She can be contacted at kathie.lattin@fswb.com or call 970-731-1300. Learn more about First Southwest Bank at their website.

I find myself all to often brainstorming with clients about how we can effectively sell their property in a sluggish market. The normal outcome of these sessions usually has an aroma of marketing, networking, pricing, repairs, clean-up, landscaping, home staging or buyer incentives...until now.

Introducing St. Joseph the Patron Saint of Carpentry! Upon entering my office a few days ago, I find a Fed-Ex box on my desk. I am a self admitted horrible multi-tasker (my wife will back me on this) and at the time I was talking on my cell phone, so it was my natural response to set this box aside, and focus on whatever it was I was into at the moment. When I did get around to opening the box, I noticed the sender is a client of mine, so I eagerly ripped apart the seals to find not one but two smallish green packages with this Patron Saint of Carpentry situated in plastic staring out at me. As a man that grew up in the buckle of the Bible-Belt, Catholicism was not something that was front and center in my world, so I needed a little help understanding this gift. He looked pretty sad to be a Saint, so I took it upon myself to investigate this man of history.

I found that according to http://www.luckymojo.com/, Saint Joseph (San Jose in Spanish and San Giuseppe in Italian) is petitioned by many conservative Catholics as one who grants an easy death, but in the wider world of Catholic folk-magic, he is the Patron Saint of real estate matters and home sales. Eureka! Now we're on to something. The reason given for this belief is that he was a carpenter who taught his "step-son" Jesus the carpentering trade, and he always saw to it that Jesus was well housed.

On the front of the package reads the words "The SOLD Realty Co." clearly defining the purpose of the Saint statuette. A quick survey around the box and I find "Can't sell your home? Ask St. Joseph... He's helped 1000's!" OK, sounds reasonable to me, but how do I put this little man of power to work? I mean for $2.99 this guy better pack a big punch with that tiny 2 cm plastic axe!

I found that there is a method to the "mojo" of "Joe". He is to be buried in the yard of the home you desire to sell. While differing methods seem to abound, here is a list that the handy burial instructions for him include:

• upside down
• in the rear of the yard
• 3' from the rear of house
• facing the house
• simply on the property
• right-side up
• in the front yard
• exactly 12" deep
• facing away from the house
• when sold remove, etc., etc.

I guess you can pick and choose from these based on how much snow happens to be in your yard.

There is a disclaimer for St. Joseph. "For this practice to be fully effective, however...sellers must, of course, first do such practical yet all important chores, as completing all necessary fix-up, properly staging the home and finally, adjusting the price so as to reflect true market value...". It's refreshing to know that my advice to sellers is at least on the right track (reference my opening paragraph).

If the plastic statue can bring me such good fortune, what else is out there concerning this holy man? Referencing my favorite general information source on the planet, aka Google, I am delighted to find additional real estate help methods with the Saint's name attached:

1 Dressed and Blessed Saint Joseph Candle
1 Statuette of Saint Joseph
1 Bottle Saint Joseph Oil
1 Saint Joseph Chromo Print
1 Saint Joseph Holy Card

I don't know if I will have the opportunity to explore these additional options of serendipity. Nothing against St. Joseph, any other Saint of old or the Catholic church, but I will continue to stick with my belief of provision. I will put my trust in the higher power of God and the work of His Son. In doing this continue to accept guidance and direction concerning life, relationship, love, business...and selling houses.

The much anticipated Pagosa Mountain Hospital Critical Access facility is having it's Grand Opening on Saturday, January 5th 2008. The ribbon cutting at 2:00 PM will kick start the opening of the new facility to Pagosa area residents.

The hospital has been completed earlier than scheduled, on budget and with no increase in mill levy thanks to generous private and community donations and fund-raising efforts.

Beginning Monday January 7th, there will be 24/7 Emergency Room services, 11 private inpatient hospital rooms for routine nursing care, a full-time laboratory, CT digitized scanning, radiology, EKG and EEG services, and much more. Future services will be added in an effort to continue to enhance and grow the features and services that the hospital will provide.

This is a wonderful thing for Pagosa residents in their personal lives as well as a crucial piece of the puzzle in supporting our economic growth.The Pagosa Real estate market stability is just one of the benefactors. Many families and seniors are more willing to live full time in Pagosa with a solid medical support structure that adds to an already experienced Dr. and specialist base that we have in place. Up until now the closest ER or critical access facility is in Durango, a one hour drive from Pagosa Springs.