About Will County, IL

"Connecting the Mortgage Dots in Today's

Real Estate Market"

Carra Riley, Cosmic Cow Pie, and

Gene Mundt, Mortgage Lender Answer

YOUR Mortgage/Credit Questions

Looking for answers to your mortgage/credit questions?

Tune-in to Carra Riley's Cosmic Cow Pie blogtalkradio program tomorrow, February 23rd at 10 AM CST to receive the answers you need and seek.

Carra will be talking to me, Gene Mundt ... a mortgage lender at The Federal Savings Bank (formerly known as Chicago Bancorp) regarding some of today's most important and timely mortgage, credit, and home buying questions in a Cosmic Cow Pie segment entitled, "Connecting The Mortgage Dots in Today's Real Estate Market".

Together, Carra and I will be discussing and answering mortgage questions, such as:

• Which are the best mortgage loans available with minimum down payments?
  
• How do I tackle my credit issues?
• How and where do I start the home buying process?
• What financial information and documentation will I need to present at mortgage application?
• Who can be a co-signor on my mortgage, if I need one?
• What are typical loan fees?
• What is the difference between Town homes and Condominiums
• What kinds of lending programs exist for investors and investment property purchases?
• What is HARP 2.0 ... and how can it help me?
  
• More ...

As someone with 35 years of mortgage experience, an in-depth, multi-decades background as a licensed real estate appraiser, and as a Certified Financial Planner, I have the extensive knowledge and expertise needed to answer the questions you have ... and also provide the services you need in Chicagoland and across the entire U.S.

It's easy to take part in this Cosmic Cow Pie session. Just dial (347) 994.1903 and ask us your questions! If you can't join us during the live blogtalkradio program, you can listen to a replay of this program at any time. Just go to Carra Riley's Cosmic Cow Pie blogtalkradio site and "click" to listen at your convenience.

I can always answer your mortgage and credit questions at a more convenient time for you through any of the following means:

Direct: 815.277.4036 Cell/Text: 708.921.6331

Email: gmundt@thefederalsavingsbank.com

Website: www.genemundt.com

Skype: 630.219.1316

Have your questions ready! Carra Riley and I look forward to assisting you with all your mortgage/credit questions and needs when you join us tomorrow, February 23rd, at 10 AM CST on Cosmic Cow Pie's blogtalkradio program, "Connecting the Mortgage Dots in Today's Real Estate Market".

See you then!

For more Cosmic Cow Pie and Carra Riley's insights ...

What's Your Point??

Nawwwww ... Not THAT Point!

A great scene, isn't it? But it's not those "points" I'm going to talk about in this blog. No, I'm talking the "points" referred to when discussing mortgage costs and options.

I've had several discussions as of late, with some pretty confused borrowers regarding these "points". They've had no real grasp of exactly what a "point" is prior to our discussion. What it can equate to in cost to them. How the cost of a "point" is figured. This is especially true with first-time home buyers.

Here's what I tell my clients when starting this discussion ...

The best way to think of a "point" cost, is to remember a percentage point equaling the number 1 ...

One percent (1%) = 1 point

One percent (1%) = .01

Then the cost of the "point" should be thought of this way:

Cost of Point = .01 X Your Loan Amount

Okay, let's put some actual dollar amounts into the equation. It will make better sense to you.

Let's say you are borrowing $200,000 for your mortgage. One (1) "point" then costs you an additional $2,000 at Closing.

Here's the math equation for that:

.01 X $200,000 = $2,000

The question I typically hear as a mortgage lender during these conversations is this ... If these "points" COST me as a borrower ... why would, or should, I even think of buying them? What does buying a "point" accomplish for me

Think of "points" (and the dollars associated with them) as interest earned or paid to the bank. The "reward" for you as the Borrower when buying that "point" is the lower interest rate received for the life of their loan at that bank.

Alot to digest, isn't it? It must be remembered too, that as the markets fluctuate, so does the benefit of paying a "point" ... and the resulting reduction in interest rate earned for doing so.

As a rule ...

1 point paid = 1/8% lower interest rate

Again, let's revisit the math we did above for that:

$200,000 Mortgage

Paying 1 "point"

Cost of "point" equals $2,000

Let's say, on the day this "point" and mortgage costs are being quoted to you, the interest rate is lowered by 1/4%. We'll say from 4% interest rate to 3.75% interest rate. The savings realized by the borrower each month (for buying a "point") is then $28.60.

Now, there is one more very important thing to figure into considering a "point" purchase ... and whether it makes sense for you to buy the "point" for your mortgage. And that's, how long you expect to be in the property you are buying or refinancing.

Why does that matter? Again, the numbers tell the story ...

We now know that the amount you save in interest monthly for buying your "point" was figured at $28.60 above ... and that you will pay $2,000 at your closing to receive that monthly savings. So to figure what your "break even" time is ... meaning the point where the savings in interest would equal the dollar amount paid on the "point" ... you do the following:

Amount paid for "point" ... $2,000

divided by:

Amount saved in interest each month ... $28.60

Equals:

70 payments

Knowing how long it takes to payback the savings realized by paying a "point" is absolutely essential when making your decision to buy that "point" ... or not. Then you simply need to consider if you plan on being in the property you are buying long enough to reach that "break even" time.

Helping you understand HOW the savings on "points" are figured ... and HOW buying "points" can affect your bottomline ... is an important part of my job, as your mortgage lender.

But the answer and decision is one that only you, the borrower can ultimately make. I hope that this blog helped you do that ...

* Having an experienced, knowledgeable mortgage lender at your side during the many decisions your are called upon to make during your home buying is crucial. Contact me today. I'll put my 35 years of mortgage experience, knowledge, and expertise to work on your behalf. I'll be very glad to hear from you.

I can be contacted through any of the following means:

Direct: 815.277.4036 Cell/Text: 708.921.6331

Email: gene@chicagobancorp.com

Website: www.genemundt.com

Skype: 630.219.1316

Click here 4 a: NO Cost NO Obligation Mortgage Consultation

If you live in Plainfield or if you are thinking about making this great city your home, you might want to keep up-to-date on what's going on in the real estate market. Are you looking for current information? Are you looking to sell your home and can't decide whether this is the right time for you and your family?

Have you thought about purchasing a home but need more information? Then this is the site for you! You will find helpful statistics that will open your eyes to the reality of what's sold and what is selling.

I have included some great information on what has sold and the price ranges, days on market, month to month comparisons, and year ending comparisons. This information does not target individual subdivisions but is meant to be an overall view of the Plainfield market.

So, grab yourself a cup of Joe, get comfortable and click on: January 2012 Area Market Overview. While you're there feel free to search for properties in Plainfield and any/all surrounding towns. Need more information? Click on "Local Cities, Villages, Towns and School Districts" and you will find links to all of School Districts, villages, cities and towns! One stop shopping compliments of Linda Kemp and Success Group Homes!

If you are interested in finding out what your home is worth or you are looking to buy a home, it is always my pleasure to help you! Call Linda Kemp today at 630.688.5121. We love referrals too!

One of my greatest challenges when working with Buyers wanting to invest in foreclosures, is helping them to fully understand what "as-is" really means. It means the only negotiation a bank may participate in is price.

It is important for Buyers to not only budget for the amount they may be willing to pay for the home, they should also budget for repairs, plus a possible required Village repair escrow. Some communities have ordinances affording the Municipality to require a repair escrow to insure the Buyer will make repairs before the Village will allow occupancy of the property.

5 Tips to increase your success Buying Foreclosures

Vito Simone, a licensed home improvement contractor reminds us when buying foreclosures (or any distressed property for that matter) it is important to know what you can afford to spend on purchase and renovations. You will need a good renovation lender, a good contractor, a good renovation consultant (HUD Certifies 203k Consultants) and a Realtor who knows how to help you buy foreclosures and other distressed property. Why not have EXPERTS in all these areas to help you?

Tip #1 – Find a good rehab lender
A 203k Expert lender is a loan officer who specializes in FHA 203k and other purchase-rehab financing. You want someone who is expert because you do not want unnecessary delays and you want reliable information. These lenders will also help with referrals to contractors, consultants and Realtors if needed. Sellers are skeptical enough about financing contingencies. So when you are buying foreclosures, use a lender that is a 203k Expert for best results and a realistic loan amount.

Tip #2 – Find a good rehab consultant
A rehab consultant, Certified by HUD as a 203k Consultant, can help you in many ways and is your best advocate. These consultants help review FHA requirements for your project, establish a detailed specifications and a repair estimate. Good consultants will be able to help you negotiate and evaluate contractor bids. A project Feasibility Inspection and Report might cost you $300 or so, but is well worth it and generally will save you many times more than that on your project.

Tip #3 – Obtain realistic rehab cost estimates
Remember a ‘Free Estimate’ is worth what you pay for it. Generally a free cost estimate from a contractor is more likely to be too low or even too high. Too low means you can run out of money. It also means that they may not know FHA requirements or simply did not take enough time to inspect the property for you. Use your 203k Consultant’s Feasibility Inspection and report with the Contractor Bid package to get at least two bids whenever buying foreclosure property.

Tip #4 – Real References
Get two references and call them.
Get one or two addresses where the contractor is currently working and go visit the job site.
Takes notes from your conversation with the references and take notes from your job site visit. Remember, you are just trying to identify two good contractors to give you a bid. Are the job sites organized? Are there empty beer bottles and cigarette butts and trash? The answers might affect you r decision and for some it will not.

Tip #5 – Being Realistic
Staying within your renovation budget, making sure your rehab specifications are clear, detailed (line items) and communications between you, your contractor and your consultant are good so everyone understands the job and the process. Ask about a ‘Rehab Kit’ to help you review the process, what to expect and how to evaluate the people trying to help you.

Several years ago I gave this business opportunity to my Mom as a gift. She has discovered so many amazing travels deals affording her to travel several times year.

What I loved about sharing this gift was she could travel often very cheaply, not be obligated to sell anything, or recruit anyone, and earn an income for traveling.

This business afforded my Mom the ability to have an internet base business whereby she could acheive all of her travel credentials and serve numerous clients without the requirement to prospect for them, resulting in additional income.

For years she had been organizing groups of friends to join her on cruises (I call her the "cruise-queen"). This buisness opportunity allowed her to do what she had been doing for years, but now earn income, free travel, and impressive upgrades.

My Mom is happy to share all of the secrets she's discovered. Please feel free to call her at 708-596-4019 or visit her at http://protravelnetwork.com/gracesvacations.

If nothing else just visit her site to find your own amazing travel deals and book them from the convenience of your computer!

In addition, she will be happy to arrange for you to view the upcoming webinars to explain everything.

-Travel for Life-

Earn $100 Cash for every person you refer to join you on the FREE training series, who then decides to make TRAVEL their next part or full time career, with PTN.

Starting your own Travel Agency business from home is one of the top 5 business ideas for 2012, according to this new article from Yahoo Finance, which highlights the top 10 businesses a person can start for less than $5,000.

This will allow anyone interested in starting a new business, to try out the travel business and in 8 days be fully equipped to launch.

After the no-obligation FREE Preview and Training Event, a person can activate their business for less than $300.

Share this information with everyone you know, and everyone they know. This is an amazing opportunity to test it, see it, do it, before you have to invest in it. And its one of the TOP business opportunities and ideas for 2012.