The second big change covered by the 2008 housing bill is the loss of down payment assistance from not-for-profit organizations to fund down payments for FHA loans. What this means to the consumer is that they will have to provide their own down payment money, or obtain gift money from family in order to fund their own down payments. In addition the required down payment on an FHA loan will increase to 3.5%. While this could not necessarily be construed as a positive development, down payment assistance will be available until September 30th of 2008 so consumers who wish to avail themselves of these programs should begin looking seriously to purchase as soon as possible. To recap on the
benefits of the FHA loan:
FHA still remains an outstanding loan product for many consumers. Past credit issues, no reserve requirements, and the new higher loan level make it the best loan for many borrowers, not just first-time homebuyers. The days of assuming that conventional lending is the best product for the high credit score buyer are over. In many cases due to changes in rules by Fannie Mae and Freddie Mac, FHA is less expensive for the buyer.
Call me today!
DAVID MENNEN
Mortgage Consultant, Owner
Tippecanoe Mortgage, Inc.
1221 S. Creasy Lane, Suite J
Lafayette, IN 47905
Direct: (765) 448.3200
Fax: (765) 448.6398
Email: dmennen@tippecanoemortgage.com
Website: www.DavidMennen.com
The #1 FHA Lender in Tippecanoe County - Since 2003!
P.S. If you are ready to talk with us right now, call 765-448-3200. If you miss us, please leave your name and number. We will get right back to you.
P.S.S. On my website I offer tons of free consumer reports to help renters, buyers, sellers and homeowners looking to refinance. To get your own FREE copy of these reports, just go to http://www.davidmennen.com/buyer_reports.html!
Local Mortgage services for Greater Lafayette, West Lafayette Indiana, Purdue, Tippecanoe County, and the surrounding areas. Local Service with internet rates! Free Quotes! Visit my website for great financial information. http://www.davidmennen.com/
On July 30th President Bush signed into law a bill that is designed to assist the housing market in its recovery from the issues that have plagued it for the past two years.
The two biggest ramifications of this bill to consumers are the $7500 tax credit to first-time homebuyers and the elimination of down payment assistance as provided by not for profit organizations.
The tax credit is retroactive to April 8, 2008. It provides up to $7500 in tax credits for any consumer who hasn't owned a home in the past three years or who purchases a home between April 8, 2008 and July of 2009. This is an excellent opportunity for purchasers to invest in a home with extra benefits for doing so.
The tax credit is really structured as a no interest loan...to be paid back in 15 years. This tax credit is important and we suggest that if you are interested in buying a home or know someone who is-please give us a call. We have a business partner who is a great CPA and have arranged for him to give advice on how this affects YOU!
Call me today!
DAVID MENNEN
Mortgage Consultant, Owner
Tippecanoe Mortgage, Inc.
1221 S. Creasy Lane, Suite J
Lafayette, IN 47905
Direct: (765) 448.3200
Fax: (765) 448.6398
Email: dmennen@tippecanoemortgage.com
Website: www.DavidMennen.com
The #1 FHA Lender in Tippecanoe County - Since 2003!
P.S. If you are ready to talk with us right now, call 765-448-3200. If you miss us, please leave your name and number. We will get right back to you.
P.S.S. On my website I offer tons of free consumer reports to help renters, buyers, sellers and homeowners looking to refinance. To get your own FREE copy of these reports, just go to http://www.davidmennen.com/buyer_reports.html!
Local Mortgage services for Greater Lafayette, West Lafayette Indiana, Purdue, Tippecanoe County, and the surrounding areas. Local Service with internet rates! Free Quotes! Visit my website for great financial information. http://www.davidmennen.com/
IRS Pumps up the Savings
Rocketing gas prices this year have prompted the Internal Revenue Service to increase the standard mileage-rate deduction for qualifying business-related driving expenses by 8 cents per mile. This means that the rate in effect for the first half of 2008 (January 1 to June 30), which is 50.5 cents, will jump to 58.5 cents for the second half of the year (July 1 to December 31) - that's almost 16%!
Normally the IRS updates this rate only once a year in the fall for the next calendar year. That means this is the first special mid-year increase since 2005 when gasoline prices spiked after Hurricane Katrina. And while an additional 8 cents a mile may not seem like much, it can really add up over a six-month period, so it is definitely worth it to keep accurate records for your 2008 tax return. If you're not sure how this new deduction affects your business, give us a call. We work with some great CPAs and tax preparers in our community and will gladly refer you to someone you can trust.
Sky-high Airline Fees
The major airlines are doing anything they can to cut costs and increase revenue as they struggle with record jet fuel prices. Measures include massive lay-offs, decreasing the number of domestic and international flights, increasing airfares, and tacking on additional fees. You've probably heard about fees for second and even first checked bags by now, but did you know that some airlines have also increased fees for changing tickets and have now begun charging for those "free" tickets you thought you "earned" through your frequent-flyer programs?
The real problem, however, is that not all fees are equal, as different airlines have different fees for the exact same services. What this means is that shopping for the lowest flight is going to require a bit more investigative work than just finding and booking the lowest fare you can find on the Internet. Airlines don't calculate these costs in the "real price" of the advertised ticket. You'll have to find out for yourself and then consider the cost of all the "extras," including food, drinks, entertainment, and where you sit on the plane.
Don't Pass up on Free Money
Stock and bond funds in 401(k) accounts have taken a beating this quarter, leaving many investors worried about their long-term financial goals. A recent USA Today article, however, revealed something much more worrisome: almost half of all Americans 25 to 34 years-old are not saving for retirement at all - even those with employers who match contributions to their 401(k) or similar retirement plans.
If you fall into this category, here's something to consider: if you had $1,000 in a CD or bank account paying 7.2% (and good luck finding one that high), it would take 10 years to double your money. 10 years! However, if you deposit that same $1,000 in your employer's retirement plan, it could double overnight. For many plans, the employer will generally match about half of your total contributions for up to 6% of your salary. In other words, if you save 6%, your company will give you 3%. That's 9% of your salary saved in your first year alone. Talk to your company's human resources department to find out how to start a 401(k) plan.
ARM Yourself Against Higher Payments
According to CoreLogic, nearly 300,000 subprime adjustable-rate mortgages (ARMs) are scheduled to reset throughout the summer months of 2008. For many borrowers, this means higher monthly mortgage payments with a rate increase of 1 or 2 percentage points -- or more in some cases -- when their loan adjusts.
The peak month for the resetting of mortgages, however, will come this October when, according to Credit Suisse, more than $50 billion in mortgages are scheduled to adjust to a new rate for the first time. If you or someone you know has an ARM, be proactive. Find out how much your payments will increase before your loan adjusts this fall. Remember, while interest rate cuts from the Federal Reserve over the last year will definitely help some borrowers, many others could have trouble making increased monthly payments with food and fuel costs on the rise -- especially if the Fed begins increasing its key interest rates in order to fight inflation.
It's also important to note that credit guidelines have tightened dramatically in the last year or so, and it may be harder for you qualify for a fixed-rate product if we don't have enough time to address certain credit issues. So don't wait until October. Give us a call today. We'll review your adjustable-rate mortgage with you and see what's best for your individual goals and needs.
DAVID MENNEN
Mortgage Consultant, Owner
Tippecanoe Mortgage, Inc.
1221 S. Creasy Lane, Suite J
Lafayette, IN 47905
Direct: (765) 448.3200
Fax: (765) 448.6398
Email: dmennen@tippecanoemortgage.com
Website: www.DavidMennen.com
The #1 FHA Lender in Tippecanoe County - Since 2003!
P.S. If you are ready to talk with us right now, call 765-448-3200. If you miss us, please leave your name and number. We will get right back to you.
P.S.S. On my website I offer tons of free consumer reports to help renters, buyers, sellers and homeowners looking to refinance. To get your own FREE copy of these reports, just go to http://www.davidmennen.com/buyer_reports.html!
Local Mortgage services for Greater Lafayette, West Lafayette Indiana, Purdue, Tippecanoe County, and the surrounding areas. Local Service with internet rates! Free Quotes! Visit my website for great financial information. http://www.davidmennen.com/
The material contained in this newsletter has been prepared by an independent third-party provider. The material provided is for informational and educational purposes only and should not be construed as investment, financial, real estate and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is not without errors. As your Trusted Advisor, I always want to make sure you are clear on all details of the home financing process. If you or someone you know are interested in purchasing or refinancing a home, give me a call today! Mortgage Market Guide, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Mortgage Market Guide, LLC does not grant to the recipient or distributor a license to any content, features or materials in this email. You may not distribute, download, or save a copy of any of the content except as otherwise provided in our Terms and Conditions of Membership, for any purpose. |
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| For the week of Aug 25, 2008 --- Vol. 6, Issue 35 |
Last Week in Review  |
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"THE FIRST THING A HURDLER LEARNS...IS HOW TO FALL." Tonie Campbell, 1988 Olympic Bronze Medalist, 110m Hurdles. And that's a lesson Bonds and home loan rates have now learned, too. After finally leaping over a big technical hurdle called the 50-day Moving Average (a moving average is the average closing price of a financial instrument over a given time period) for the first time in weeks, Bonds and home loan rates then quickly plunged to some of their worst levels of the week. So what happened? Bonds and home loan rates began the week facing a tough inflation hurdle, when the Producer Price Index (PPI) came in at the biggest year-over-year increase in 27 years. The Core PPI, which excludes volatile food and energy prices, also came in at the biggest year-over-year increase since 1991. However, the recent drop in oil prices kept the topic of inflation from being too high a hurdle for Bonds and home loan rates, and they managed to leap above the 50-Day Moving Average to some of their best levels in weeks on Wednesday. However, the quick rise in Bond prices pushed them into "overbought" territory, which pulled the reins back on their momentum. Combining this with Friday's news that the Korea Development Bank may be interested in acquiring Lehman Brothers - which added confidence to the financial sector, causing traders to move money from Bonds into Stocks - caused Bonds and home loan rates to stumble and end the week only slightly improved than where they began. WONDERING IF YOUR BANK DEPOSITS ARE FULLY PROTECTED? CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW TO MAKE SURE YOU AREN'T FACING ANY UNEXPECTED HURDLES! |
| Forecast for the Week |
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And if any improvement is in store, Bonds and home loan rates will again have several big obstacles to face this week. Right off the bat, we will get a read on the housing market as the Existing Home Sales report will be released on Monday followed by the New Home Sales Report on Tuesday. Also on Tuesday, the minutes of the Fed's latest meeting will be released, and it will be important to see if any comments about inflation will cause Bonds and home loan rates to trip up. And more hurdles still will follow in the last half of the week. On Thursday, the Gross Domestic Product (GDP) Report will be released and on Friday we will get the details on the Fed's favorite gauge of inflation, the Core PCE (Personal Consumption Expenditure) data, from the Personal Income report. If either of these reports show inflation as a big barrier looming ahead, Bonds and home loan rates may not be able to regain any headway before the markets close early on Friday at 2:00 pm in advance of the Labor Day holiday weekend. Remember when Bond prices move higher, home loan rates move lower...and vice versa. As you can see in the chart below, Bonds and home loan rates managed to stay above the 50-Day Moving Average line despite the losses they incurred. I will be watching to see if Bonds and home loan rates can surpass additional hurdles and regain some ground this week. Chart: Fannie Mae 6.0% Mortgage Bond (Friday Aug 22, 2008) |
| The Mortgage Market View... |
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The Low Down on FDIC Insurance After last month's failure of California-based IndyMac Bank, many people have wondered how safe their accounts really are. While the Federal Deposit Insurance Corp. (FDIC) guarantees most bank deposits, here are some important details to remember. What types of accounts are covered? The FDIC protects checking and savings accounts, certificates of deposits (CDs), Christmas club accounts, and money-market savings accounts. However, Stocks, Bonds, and mutual fund shares...even those purchased through an FDIC bank...are not protected. What are the limits of FDIC insurance? Bank accounts that have less than $100,000 in them and certain retirement accounts (IRAs held in CDs and money market accounts) that have less than $250,000 are fully protected by the FDIC even if the bank fails. If you want to exceed these account limits, you can keep your deposits fully protected by:
What are some common ways customers end up with uncovered deposits? If you purchase a CD through an investment broker, this CD will often be placed with a bank at which you already have an account. If the CD and your other accounts exceed the $100,000 limit, you may not be full protected. Before purchasing CD's through a broker, ask where they will be placed. In addition, keep track of the interest your accounts earn so you don't exceed the limits this way. What will happen if your bank fails? In most cases, depositors can fully access their funds by the next business day. Typically, failed banks are closed on Fridays, and funds are available by the following Monday. People can also usually use their ATM cards and write checks over that weekend as well. And for customers whose accounts exceeded the FDIC limit, all hope is not lost. Though this amount has varied, they can generally expect to recover 70 cents on the dollar of their uncovered funds after the bank's assets are sold. The good news is that the vast majority of US banks are secure, but the above information will help you stay fully protected. For more information, visit www.fdic.gov. |
| The Week's Economic Indicator Calendar |
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| Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
Economic Calendar for the Week of August 25 - August 29
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The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is not without errors. As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you. In the unlikely event that you no longer wish to receive these valuable market updates, please USE THIS LINK or email: dmennen@tippecanoemortgage.com If you prefer to send your removal request by mail the address is: David R. Mennen Tippecanoe Mortgage, Inc. 1221 S. Creasy Ln., Suite J Lafayette, IN 47905 Mortgage Market Guide, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Mortgage Market Guide, LLC does not grant to you a license to any content, features or materials in this email. You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.  |
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Mortgage Loan Services for Lafayette, West Lafayette, Tippecanoe Co. and the rest of Indiana. Buying or Refinancing a Home? We offer local service with Internet Rates! Free Quotes!www.DavidMennen.com
When you finance through Tippecanoe Mortgage, there are no surprises at closing because we provide you with pre-qualification advise, ongoing assistance and follow-up support. Working together with banks, real estate agents, builders, escrow agents, and homebuyers Tippecanoe Mortgage has developed a sterling reputation for dependability, honesty, and consistently successful performance. You can trust that this expertise will result in the best mortgage for your loan experience.
We work with a number of lending institutions and can find the right financial products and services to suit any home buying situation. Our careful choice of lenders and loan options ensures you a competitive rate. Tippecanoe Mortgage is a local company with a National reach - a powerful combination that means the best loan for each homebuyer.
Applying for a home loan online with Tippecanoe Mortgage has never been easier. This automated system allows you to complete the application process quickly and receive an answer within 24 hours! By gaining pre-approval prior to looking for a home, you will save time, energy and money. Tippecanoe Mortgage is raising the standard for online service in the mortgage industry. Let Us Shop For Your Mortgage!
Why should you have a mortgage approval before you have a home?
With our FREE Mortgage Pre-Approval program, we verify your income, credit and assets to determine the maximum loan amount you can qualify for. We will issue a mortgage approval letter, which is subject to an appraisal.
You can use this in your negotiations to remove any worries about your ability to obtain financing therefore have more power to negotiate. Don't lose out to another bid because of a mortgage contingency.
Before you look for a home, get your mortgage approved first!
Our mission is to create Clients for Life by consistently exceeding the expectations of our clients!
"I really didn't think that it was possible, but you said you could do it. I really didn't believe you, but you proved it! I have never been so happy to be wrong! I can't tell you how much we appreciate all that you have done for our family." -Deana Bolton
"The entire staff was friendly, helpful and a pleasure to do business with. Everyone went out of their way to process my loan in a timely manner" -Sharon Tres
"We would like to thank your entire team for the great service that you provided during our first home purchase. Due to your outstanding job, we were able to close on our new home with no problems." -Patricia Greer
"David, we wanted to thank you for everything that you did to help us get the home of our choice. Thank you also for taking the time to go that extra mile on getting approval. We are enjoying the house greatly. Thank you again." -Melissa, Carissa & Jeremy
"I really appreciated the assistance in obtaining my mortgage and your creativity in financing options." -Pat Johnson
"I was declined by three other companies. We were very pleased that David was able to get the loan approved. Thanks David. We appreciate it, and look forward to recommending our friends!" -Ravi KC
"Great team work! Thanks a lot! You were tremendously helpful and pleasant to deal with. Our experience with Tippecanoe Mortgage was superb." -Linsey McGuire
"I have had the privilege to do business for the third time with Tippecanoe Mortgage and every time Casey Shipley was fabulous at her service to me. She is always polite and courteous. Thank you for such wonderful service!" -Mark McClain
"Very friendly staff. You were the ones I enjoyed working with the most in the home-buying process." -Alyssa Gillum
"David and Amy (loan processor) were a pleasure to work with." -Justin Stephenson
"Dave, Thanks for everything!" -Connie and Mike Becker
This site includes information on mortgage loan financing for homes and properties in Tippecanoe County, Lafayette, West Lafayette, Purdue University, Battle Ground, Buck Creek, Clarks Hill, Dayton, Montmorenci, Romney, Stockwell, Westpoint, White County, Brookston, Buffalo, Burnettsville, Chalmers, Idaville, Monon, Monticello, Reynolds, Wolcott, Carroll County, Bringhurst, Burlington, Burrows, Camden, Cutler, Delphi, Flora, Rockfield, Yeoman, Clinton County, Colfax, Forest, Frankfort, Kirklin, Michigantown, Mulberry, Rossville, Sedalia, Boone County, Advance, Jamestown, Lebanon, Thorntown, Whitestown, Zionsville, Montgomery County, Alamo, Crawfordsville, Darlington, Ladoga, Linden, New Market, New Richmond, New Ross, Waveland, Waynetown, Wingate, Fountain County, Attica, Covington, Hillsboro, Kingman, Mellott, Newton, Veedersburg, Wallace, Warren County, Pine Village, State Line, West Lebanon, Benton County, Ambia, Boswell, Earl Park, Fowler, Otterbein, Oxford, Talbot, Templeton, and the rest of Indiana. FREE Home Search service data (Home Buyers Scouting Report®) is provided by Home Buyers Marketing II, Inc., and also includes real estate property and homes, Free market analysis, condos, and town homes for sale in Tippecanoe County and the surrounding counties, covering real estate, including investment properties for sale. Represented by REALTORS and real estate agents in those regions. People who are relocating, buying a first home in Lafayette, West Lafayette, Indiana, IN, and the surrounding areas, or those who are looking to refinance their current home mortgage loan, will find useful information on home for sale, homes for lease, condominiums, town homes, luxury homes, executive homes, and new developments, to buy or sell, with additional information on schools and regional highlights. Homebuyers and sellers can find information on properties through Home Buyers Scouting Report® on residential real estate or other properties that include Lafayette Indiana and West Lafayette Indiana. Tippecanoe Mortgage consists of experienced mortgage loan professional who have expert knowledge of the properties in these communities. This mortgage company website is an excellent resource for home loans, mortgages, home equity loans, mortgage refinancing, refinancing, morgage, interest only calculator, interst only calculator, 2nd mortgage, second mortgage, mortgage lenders, home equity loan, indiana loan mortgage, home equity loan mortgage, rates, refinance quote, new construction loans, conventional loans, FHA loans, VA loans, USDA loans, first time homebuyer loans, little or no down payment loans, bad credit loan, zero down loans, government loans, real estate, investment loans, relocation, rental property, buying property with no money down, financing property with no money down, and less-than-perfect credit. This site is also a source for valuable mortgage information offering Free consumer reports for homebuyers, sellers, and credit information. Loan professionals David Mennen, Casey Shipley and Shawn Hill will help you make the Lafayette Indiana loan process as simple as possible. Apply online today!
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Heating and air conditioning usually represent the biggest portion of home energy bills. As we head into the hottest part of the year, here are some ideas from author and home improvement expert Don Vandervort that will help you stay cool...and save money in the long run:
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