Jennifer Brinson

I give this to all my purchase clients for fun...thought I would share!

DON'T WAIT! Convert that ARM NOW!

Here is Why!!!!

Starting after December 31st, all clients seeking a conventional mortgage will need to have a back end ratio of no more than 45% ratios. What this means is even if DO or LP, Fannie Mae and Freddie Mac's direct Approval systems, Approve the loan at a higher debt ratio in the system, borrowers will still NOT be allowed to exceed the max debt ratios of 45%. So far FHA and VA are not included within the new guidelines that I am aware of.

Simply, again GUIDELINES ARE GETTING TIGHTER and will probably continue on this trend! This will definitely eliminate borrowers who need to refinance from Interest only ARM loans, regular ARM loans or who previously went Stated. Furthermore, all the reason to ACT NOW if you need to convert your mortgage loan!

This is another great reason to covert that Adjustable Rate Mortgage in addition to declining values, uncertainty of mortgage rates, and worries of the economy with job cut backs and losses. Don't sit on the fence, and don't wait any longer!

To calculate your own debt ratios, take your total payments that report from the credit bureaus, on your credit report. This is generally your current auto loan payments, credit card payments, student loans, lines of credit, etc. Total the monthly payments and divide them by your monthly income.

I love Lakeville, Minnesota because...

• great education
• parks and trails
• small enough to have my own mechanic shop, ice cream place, church, and theatre
• big enough to have Target, restaraunts, grocery stores nearby
• newly developed, very clean
• pride of the city and residents
• lakes
• wonderful neighbors
• low crime
• great involvement with parents and kids
• family friendly

Lakeville is a wonderful place to purchase a home and raise a family! Before the market took a down turn many buyers would have thought that Lakeville was too pricey of a place to move and live. Now there are many affordable homes and townhomes. Lakeville was on the top ten places to live for many great reasons as I mentioned above. If you are looking to re-locate or buy your first home, Lakeville should be a consideration!

For the most part clients need a 580 minumum score to purchase or refinance a home. Lenders are looking for the middle of the three scores between Equifax, Transunion, and Experian. Having a 580 may get you qualified, but everyone knows the higher the score, the better rates and programs you may qualify for, saving you thousand's of dollars in the long run!

There are many people who would benefit from credit repair if needing to achieve an increase in several points, and perhaps have many collections and late payments. For others it may be a few simple things you can do yourself:

• Maintain your credit balances at 30% or below your maximum credit limit. So if you have a $1000 maximum limit, keep your balance at $300 or below on a monthly basis. One thing people have asked me, is why there credit card reflects a balance when they pay it off every month. The reason is because even if they pay it off every month, they continue to use the card and the balance reflects the amount they use vs. what they pay. The balance is there until the due date, and the credit cards do not generally report to the bureaus the balance based on the due date of the payment.
• Do not have too many credit cards. Ideally you can have a few, maybe 2-3 general cards like Visa, Mastercard, or Discover, America Express, and then maybe 1 department store or gas cards. Try and keep them all under 30%. Use them actively even if it's maintaining $20 per month.
• Do NOT close credit cards. Even if you do not use them, do NOT close the cards. The cards that have the longest history on your accounts give you the best points. Closing them actually drops your credit score. It is better to keep them open with no balance then to close them.
• Do not make any payments over 30 days late ever unless you absolutely have no choice. Keep your creditors aware if you have to be late.
• Order your free report every year at the bureaus direct websites. Review to make sure that everything is accurate. If there are inaccuracies, the bureaus are supposed to remove the tradeline within 30 days of your request and verification.
• Receiving a lot of unwanted credit card pre-approvals, or perhaps you just applied for credit voluntarily and now you are being solicited via phone non-stop? This is because the bureaus sell your name on lists and make money. To stop this, go to www.optoutprescreen.com

In an economy where you are being told credit is tight, people need to stop over extending themselves and start using more cash, hope these tips may help!

This is exciting! Even if it doesn't pass, it is still exciting to talk about!

I read in the newspaper yesterday that there is a push from major housing groups and housing lobbies, including the National Association of Home Builder for government to sign off on new temporary incentives for homebuyers.The ideas are:

• Rate Buydown to as low as 2.99% Fixed Rates. The government would pay the buydown from the normal market rates.
• Up to 10% of the purchase price of a home being re-imbursed as a tax credit back to the buyer.
• 4-5% Fixed Rates with a $7500 tax credit combo
• Removing provisions that the tax credits be "re-paid"

So there are obvious projected costs of 130-140 billion dollars for the buy downs, which is tremendous. But, the talk may just bring about an amended things such as smaller buy downs to 4-5% rates with the combination of the tax credits.

This proposals are within the stimulus package proposal projected in January.