What's the value of your home? (MN & WI Only)

Many homeowners are curious about the appraised value of their home. An actual appraisal is expensive, and county tax records do NOT always reflect true market value. As you may be aware, home values are constantly fluctuating, and with the decline in average values, it is important to have an accurate idea of what your home is worth.

There are many sites that claim to give you are idea, including Zillow, Trulia, and more.

The problem is, where is the data coming from and how accurate is it?

We have a different tool to answer the estimated appraised value of your home question. Our application uses the Freddie Mac Home Price Index ( FMHPI ). FMHPI is calculated using a repeat-transactions methodology. Repeat transactions indexes measure price appreciation while holding constant property type and location, by comparing the price of the same property over two or more transactions. The change in price of a given property measures the underlying rate of appreciation because basic factors such as physical location, climate, housing type, etc., are constant between transactions. Averages of appreciation rates for different geographic areas and time periods are calculated using statistical regressions and the index values are derived from these averages

While the estimate may not be the actual or appraised value of your property, it can be a useful tool to gauge fluctuations and trends in your market which affect your home's value.

CHECK THE ESTIMATED VALUE OF YOUR HOME (MN and WI homes only)

For best results, contact us. I can help with refinancing your existing MN or WI home, get you pre-approved for a new home, or put you in touch with a GOOD Real Estate Agent to help determine the best asking price for your home. We know the particulars of your neighborhood, the value of homes, and can help you discover what your home may really be worth.

The real estate market today is one of the toughest in recent history. A large number of foreclosed homes on the market is marking it tough on the traditional home seller. While every market is different, most areas have seen a significant drop in value.

The mortgage industry has tighten lending, with a virtual elimination of all non-traditional financing and "creative" zero down type options (although VA and USDA are still around and great zero down options). Most programs today require 3.5% to 5% down MINIMUM and good credit. Gone are the days of easy lending.

Washington has tried "fixing" mortgage lending, but has essentially failed with bad programs like FHA Secure, Help For Home Owners, HARP, and HAMP. They've made industry changes that have cost home buyers more money, like HVCC, and LO Compensation. They've created more confusion with the new three page Good Faith Estimate, and the whopper of them all... Only requiring half of the Loan Officers to have a license!

Traditional sellers have the upper hand and an easier time in most cases in the "condition of the property" category versus a foreclosure, but it is still very tough when the banks are liquidating foreclosed properties, and the prices they are giving some of them away at.

So, what is a seller and buyer to do? How does a seller sell and a buyer buy in today's market?

First, understand that because of the large volume of foreclosed properties, it is a great time to be a buyer, whether you are a move-up buyer or a first-time buyer.

For sellers, now is not the time to try and sell your own property. You need the help of a FULL-TIME, experienced Realtor to help guide you through the process. Buyers need the same help to guide them through the maze of properties, both traditional and bank-owned. Having a good agent is extremely important. Take some time to interview your Realtor. How long have they been in business? How many sales have they completed? How many buyers have they helped? Can you get references? Don't just pick your agent from an open house, or use your sisters best friend who got her license last month.

For move-up buyers, you may have to give in to a lower than you like selling price, but you should reap a nice reward on any new home you buy. This is especially true if you are moving from the low $200k to the mid $300k range, as homes that were selling in the $400k range are now in the $350k. Therefore, even if you have to give up a little on your current sale price, you should more than make up for it on the buy side. Remember, a house priced right, and realistic, will sell even in today's market right away. Furthermore, with today's standard fixed rates hovering around 5%, you can still lock in historically great rates!

For first-time buyers, it is a great time to find aggressively priced homes, whether it is a bank-owned foreclosure, or a motivated traditional seller. Not all buyers are ready, or want to tackle "AS IS" foreclosures, so be sure to be honest with yourself about what you are doing to avoid a potential disaster down the road.

Today's prices are again extremely affordable in the first-time buyer starter home category. Even though most zero down programs are no longer available, with proper negotiation, you can get the seller to pay most, if not all of your closing costs.

This means you can buy a $150k home for just $5250 out-of-pocket. With programs like FHA, the entire down payment can be a gift from family members, or community assistance programs. That is how it was always done prior to about 1999... and somehow people bought houses then, so don't sit back waiting. NOW is the time to buy!

Finally, one of the first things you should do is get pre-approved with a quality lender who will discuss with you your qualifying ability and program options in today's market. Someone who has the knowledge, expertise, and full range of programs (like FHA) to bring you to a successful no surprises closing. This is never the guy on the internet posting the lowest rate, or the unlicensed bank representative at the 1-800 number bank call center.

A word of caution. If you are shopping for a lender based on rate, be prepared to get screwed. Be sure to read these informative articles for more information: "Rate Shopping - How to do it right", and "Lender Shopping - How to do it right".

No matter what your real estate needs are, buying or selling, with the proper guidance of full-time professional Realtor and Loan Officer, you should be able to have your dreams come true.

(C) 2011 - Joe Metzler - www.JoeMetzler.com

Minneapolis Star Tribune reports that Mortgages Unlimited has the best rates. This isn't much of a surprise, as the company is a rarity in the business. In 2011, the company is celebrating 20 years in business as one of the areas top independent mortgage companies.

Read the article: http://fb.me/MxiNSsWk

Mortgages Unlimited delivers value-added loan solutions that fit every clients needs. Our goal is simple—to offer the unlimited loan options of a major lender with the personal service and feel of a family-owned business. We take great pride in our corporate values—strong ethics, family values and teamwork.

Mortgages Unlimited has a large and varied portfolio of lending options that allow us to match your specific borrowing needs. We view our clients as partners and we strive to make the entire loan process simple and stress free by:

• Communicating Throughout the Process
• Providing Honest and Ethical Solutions
• Building Trusting Relationships
• Exceeding Your Expectations

Apply online, or call (651) 552-3681 to get started.

Mortgages Unlimited, Inc. Nationwide Mortgage License (NMLS) #225504. We lend in MN and WI only. Equal housing lender.

City Living Program in St Paul and Minneapolis, MN.

Below market interest rates: Currently 3.99% (4.775 APR) (as of 12/13/2010 and subject to change)

River walks, people, fine dining and concerts. And that’s just the beginning. From condos and lofts in downtown to charming homes in historic residential neighborhoods, the Twin Cities area has much in the way of housing options that allow you to enjoy all that major cities have to offer. With City Living’s loan programs, the reality of urban living and home ownership is not far away.

Homebuyers accessing this First Time Homebuyer Loan may qualify for a below market interest rate may also be eligible for Down payment and Closing Cost Assistance. As a borrower, you can choose from two market mortgage interest rates; one rate comes with a Down Payment Assistance Grant (DPA) of either 2% of your new homes purchase price, while the other rate is without the grant (Non-DPA). This program is made available by the cities of Saint Paul and Minneapolis, and is available for homes within the Minneapolis and St Paul City limits.

General Program Information and Qualifications

• You must live in the home.
• Property must be single family home, or duplex in Saint Paul or Minneapolis city limits.
• Income and purchase price limits apply.
• Home Buyer counseling class is required. (call 651-552-3681 to register)
• First Time homebuyer funds are reserved on a first-come, first-serve basis

First Time Home Buyer money NOW AVAILABLE. Apply online and be ready to go!

Most Minnesota city, and county mortgage and down payment assistance funds are limited, and on a first-come, first-serve basis, including the City Living Program. Contact us as early as possible in the home buying process to be sure you are qualified. If you have questions about the home buying process, call 651-552-3681, or APPLY online 24-hours a day via our secure application. There are no costs or obligations.

To apply for a City Living Loan contact a participating mortgage lender like us. The lender will review your income and credit history to determine whether or not you will qualify for the loan. It is important that you know not all lenders are able to offer the City Living Program. We are proud to be a provider of many of these loans. Knowing your full exact situation will help us determine if a government assistance loan programs are right for you. Being pre-approved also gives you ultimate buying power and the upper hand in negotiating.

Ready? There are no costs or obligations to get started!

Down Payment & Closing Cost Loans Income Limits

Household Income Limits (These limits are determined by HUD and subject to change). The “household” income includes all persons living in the property, regardless of family relation or whether they are a party to the first mortgage. Income from all members of the household age 18 years and older must be included when determining which level of assistance applies to the household

If you have questions about the home buying process, call 651-552-3681, or online 24-hours a day via our secure application. There are no costs or obligations.

TOP REFINANCE MISTAKES

Minneapolis, MN: Mortgage interest rates are great, and everyone is thinking "should I refi" my home mortgage loan? For most people, a home is the biggest investment they will ever make. However, few people do the research necessary to make a good buying decision. The home-purchase process is extremely confusing for most people. With a little bit of homework, and some advice from family and friends who have been through the process before, you can make this a little easier on yourself. There is no substitute for taking the time to educate yourself before you buy or refinance a house, which typically costs you 25% to 40% of your gross income!

#1 Mistake: Refinancing with your current lender without shopping around. Your current lender may not have the best rates and programs. There is a general misconception that it is easier to work with your current mortgage company. In most cases, this is NOT the case, and your current mortgage company will require the same documentation as other companies. This is because most loans are sold on the secondary market and have to be approved independently. So even if you have been very good at making payments to your existing lender, they will still have to do their verifications all over again. Your current servicer / lender also knows you automatically think they are a good place to call, and probably didn't shop around. They clearly take advantage of that. Every single customer I talk with today, I can offer them a better deal then their current lender.

Also be aware that your current lender may appear to cost less because they say they have no, or very low closing costs. When you calculate the higher interest rate vs. closing costs with a new lender, the new lender with lower rates almost always wins. Remember that there is no such thing as a free lunch. Click Here for Closing Cost Information

#2 Mistake: Choosing a lender just because she/he has the lowest "quoted" rate or cost. Quoting is easy. Anyone can quote. Actually being able to deliver on that quote is something completely different. While rate is important, you have to look at the overall cost of your loan. This includes looking at the APR, the loan fees, as well as the discount and origination points. Some lenders include origination points in their quoted points, while other lenders add an origination point in addition to their quoted points. So when one lenders says 2 points they mean 2 points, whereas another lender means 2 points plus 1% origination. Click HERE for closing cost information.

Other Mistakes:
Not doing a break-even analysis. Find out what the total cost of the refinance is, then figure out how much you will save every month. Divide the total cost by the monthly savings to get the number of months you will have to stay in the property to break-even on your refinancing costs. Example: if your refinance costs $2000 and you save $50/month your break-even is 2000/50=40 months. You should refinance if you plan to stay in the house for at least 40 months. Use our Mortgage Refinance Breakeven Calculator

Note: The break-even analysis only works if you are refinancing to save money. If you are refinancing to switch from an adjustable to a fixed, get cash out, or from a 30-year loan to a 15-year loan, it is much more difficult to perform a break-even analysis.

Thinking you don't qualify: Many people think they can't qualify, and I don't blame them with all the news about today's lender requirements. Take a few minutes, fill out an online mortgage application, and let a professional Loan Officer make that determination. I do this full time 50-hours a week for 20-years, and even I have a hard time keeping up with the rules!

Thinking the county tax assessor's value is the market value of your house. Mortgage companies do not use the county tax assessor's value to determine whether they will make the loan. Instead, they use a market-value appraisal which may be very different from the assessed value.

The cost of the mortgage, however, cannot be your only criteria. There is no substitute for asking family and friends for referrals and for interviewing prospective mortgage companies. Learn how to Pick a Good Lender. You must also feel comfortable that the loan officer you are dealing with is committed to your best interests and will deliver what he/she promises. Often, the company that has the absolute lowest quoted rate (far from everyone else) may not be telling you something. It is hard to compare apples to apples, when someone is slipping you an orange. Also, be sure to read our article "Beware of the BAD, Good Faith Estimate"