Evergreen, CO

Mortgage Market Update by RJ Baxter First Mortgage Corp

Last week was an interesting week as we saw rates improve significantly.  Why?

There were several factors at hand that affected mortgage rates for the better.  The big one was the announcement that unemployment is uglier than we thought. Yes, the overall unemployment rate went down to 9.7%, but keep in mind that this could just be statistical noise.  The big numbers were the weekly claims in at 480,000, and the 2009 numbers which were revised to reflect 1,000,000 more jobs lost than previously reported.  This is the big whammy that sent investors to safe-havens like bonds.  When bonds are being purchased, mortgage rates improve.

The other important announcement was global economic concerns and specifically the concern about European currency failing confidence tests and hence falling in value.  Although this is good for the value of the dollar, it raises more concern about the worldwide economy.  This news was also good for mortgage rates as foreign investors sopped up US bonds in an effort to gain safe and stable investments.

There was an important technical level broken last week as well, which bodes well for continued good rates for the near future.  The 100 day moving average was broken and trading emerged above this important resistance line on Thursday and Friday.  What this means is that the 100 day moving avergage went from a resistance point, a lid on pricing, to a support line, enabling bonds to continue to trade above this line.  Higher bond yields = lower mortgage rates and green bars on the chart indicate rates improving for the better(lower).  The arrow indicates an open above the 100 day moving average on Thursday despite closing below this point, which is a very important indicator.

Another interesting announcement was the US budget which calls for $3.8 Trillion in spending with a $1.3 Trillion deficit.  Am I the only one wondering what the end result of all of this spending will be? 

This week is a rather quiet week as far as economic news is concerned.  It is likely that rates will stay above the 100 day moving average this week and will stay good at least into next week.  However, long term, I am still skeptical that rates can stay at these historically low levels for much longer.

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Refinance Home Loans in Evergreen Colorado

Despite the poor economy, most people can still refinance their mortgage. There are many programs available for Refinance Home Loans right now with all of the government stimulus programs that have come out. The great thing about working with a credit union like First Mortgage Corp is that we have access to all of the Refinance Home Loans available in the marketplace and can shop your scenario to over 30 banks to find the best deal.

If you owe more on your home than it is worth, there is the Making Home Affordable program. This program allows home owners to access to Refinance Home Loans that carry excellent rates despite high loan-to-value ratios or negative equity.

Your mortgage must be owned by Fannie Mae or Freddie Mac to take advantage of this program. The Fannie Mae program is called the DU Refi Plus refinance. The Freddie Mac program is called Freddie Mac Open Access. On both of these Refinance Home Loans, even if you have less than 20% equity in your home, normally a scenario for which you would have mortgage insurance, you will not have mortgage insurance on the new mortgage.

Do you have an FHA or VA loan? These government-backed programs offer a streamline refinance program which does not require an appraisal and has more lax qualifying guidelines.

And of course there are traditional conventional Refinance Home Loans which will allow you to take advantage of the historic rates we have been seeing over the past year.

We offer honest, professional, financial advice and will provide you a free, no obligation rate quote for your unique Refinance Home Loan situation. Our goal is that you will be so happy with us that you will come back the next time you need help and will refer your friends and family to us.

Jumbo Home Loans in Evergreen Colorado

Good news! Affordable Jumbo Home Loan financing can still be found.

A Jumbo Home Loan is one where the loan amount exceeds $417,000. Not difficult in some areas of Colorado, including Evergreen, Boulder, and Summit County, to name a few near Denver.

In some of those high-cost areas, your loan amount must be much higher to be classified as a Jumbo Home Loan, so you may fall into a category called "Conforming High Balance." It's good news if you do, because conforming high balance loans have rates only slightly higher than a conforming loan less than $417,000.

However, if you are not in the conforming high balance category, you are probably seeking a Jumbo Home Loan. There is a perception that these loans are impossible to get in today's banking world. Well, I'm here to tell you that nothing can be further from the truth.

Yes, there are qualifying factors, but some Jumbo Home Loan lenders have become somewhat flexible and even allow credit scores into the 600's. Income must still be fully documented by all. Loan-to-value ratios can go as high as 80% with some lenders, and loan amounts for some go as high as $2,000,000.

And that's not all. Jumbo Home Loan lenders are offering rates in the 4%'s or even upper-3%'s on 5 and 7 year ARMs. An ARM is a wise choice with most of them because fixed rates are in the 6%'s and some Jumbo Home Loan lenders don't even offer fixed products.

Primary residences and vacation homes qualify - investment properties are more difficult. Many Jumbo Home Loan lenders won't financing investment properties.

It's a shame that the perception right now is that Jumbo Home Loan financing doesn't exist because there are many lenders still offering great deals to high balance clients. And maybe you're lucky and fall into the conforming high balance category. If you have a large loan amount greater than $417,000, don't let the economy stop you from refinancing or purchasing a home.

Rates are still at all-time lows and banks are lending!

I need to hear from my Activerain colleagues regarding an incident that I experienced today.

Quick background: I helped a nice couple buy a home in the Front Range community of Conifer, Colorado 4 years ago. Tragically, 1 year later, I had to offer my condolences to the husband as his wife unexpectedly died. I was excited to hear, in April 2009, from his fiance who needed my help with remodel suggestions for his Conifer home. He was such a nice guy and I was so happy he found someone new to move forward with. For the next 8 months I communicated with her about ideas and potential market values. Yesterday, I got an email from her giving me a heads up that I should be in contact with her daughter in Wisconsin regarding putting her original home on the market in Evergreen. Now that she was married and living in Conifer, she didn't need that second home.

When I called her daughter today, who was a Realtor, I was shocked by the conversation. The daughter, who has been in the business for 5 years, explained that she has helped her mom buy and sell many homes. She would want to see my market analysis, any contracts and be involved in all decisions. As inconvenient and cumbersome as that is, I was fine with it as I deal with many family members who offer their opinions. What I didn't expect was for the daughter to say in order for me to work with her mom, I had to be open to paying her a referral fee of 25%. ARE YOU KIDDING ME!

I tried to clarify and paint a picture that it may be a little inconsistent to ask for a referral fee when there wasn't a referral and to remind her that I called her per her mother's request. I told her I was in communication with her mom for several months regarding her real estate needs. That didn't make a difference. She was expecting 25% no questions asked. After spending a few hours thinking about it, I made the personal and business decision to advise my past client's new spouse that her daughter's request for a referral fee was unreasonable and not how I want to start a relationship. It was no win-win.

I need to know from you all when it became OK for a Realtor to act so selfishly that they would demand a referral fee for doing nothing other than being a family member or friend. Are Realtors that desperate for income that they would stoop that low. No wonder society looks at our profession as one click above a used car salesman. I've worked my butt off trying to dismantle that negative impression and bring a professional image to this industry. AM I OFF BASE FOR BEING SO ANNOYED???

Share your thoughts and experiences...please!

So this past weekend I went out with a Buyer who came to my Downtown Evergreen office because the agent they were using was based 40min away in the "flat lands" of the Denver Metro area and they didn't feel she was qualified to consult them. I learned this agent had nothing positive to say about living in the beautiful foothill mountain community of Evergreen and Conifer. This agent's advice for this buyer centered around "your car will get dirty from the dirt roads", "you don't get A/C in most of these homes", "homes in the mountains are so different from one another", "if you plan to sell, it's going to take a year or more to do that in the mountains".

It's upsetting to hear that this agent (a 10yr veteran) responded to her buyer's request to live in a location with "you really don't want to live there." It wouldn't be so bad if her information was well informed and supported her impressions. She was way off base though and that does no one any good. Yes cars get dirty, but where don't they in Colorado. We don't need A/C because the Evergreen area is about 15 degrees cooler than the metro area in the Summer so we don't need the extra expense. Yes..homes in the foothills are different from home to home. We don't have the cookie cutter homes that make up the suburbs of the South Metro Area. Homeowners and Realtors up here see that as a premium not a negative. And the biggest mistake this agent made was advising this buyer that homes take a year to sell. In fact, the average days on the market for Evergreen, Conifer or the Genesee/Golden areas was 150 days for 2009.

Now I'm not complaining because if this agent wasn't so negative about Evergreen, I would not have acquired a new client. What concerns me is the fact that more and more agents, not based in the mountains, are trying to represent buyers for homes up here. It's no wonder homeowners complain about not knowing something their agent should have advised them of. As a Certified Mountain Area Specialist, I can honestly say "Buyer Beware" if your agent is not based in the mountains. With challenges like access, easements, utilities, radon, uranium, wells, septic, propane, dirt roads, zoning, fire mitigation, infected trees, wild life, sun exposure, levelness of a lot, and maintained roads to name some, a buyer needs all the information and experience an agent can provide...not assumptions or impressions from an agent not savvy to the area.

For the Realtors reading this, do yourself and a buyer a favor and refer them to an experienced agent in the mountains. It's easy money for you and less headaches when mistakes come back and bite you in the rear. Buyers who are reading this should seek out agents who are based in the mountains. Don't take chances on a purchase this big.