If you are thinking of a refinance or for that matter a home purchase, now is the time. Conforming prices will increase based on recent Congressional action.
Freddie Mac and Fannie Mae are increasing their guarantee fee effective with April settlements which will worsen pricing. In order for a loan to meet the April settlement requirement it must fund prior to February 29th 2012.
The guarantee fee increase will worsen prices up to 80 basis points (8/10 of 1%) depending upon the note rate. Some lenders are staggering the increase based upon when the loan is locked in an effort to offer lower rates to consumers in the market for as long as possible.
If you are considering a refinance or purchase do it now if you can . Although interest rates remain at record lows there's no telling how long they will remain low and with this announcement we know that the cost of obtaining financing will increase.
Please note that the guarantee fee increase does not impact government loans. For more details on this and any other financing options please call Brian Leavitt at Northstone Mortgage.
There is a certain element in managing a transaction that for whatever reason always seems to be a little surprising to me and that's the seeming insecurity of otherwise secure and confident home sellers. I don't know if it is an issue with women more than men but it is usually women that surface the concern. Perhaps it is simply that some men do not vocalize this concern as much or maybe it is that many men and women react differently to the security their home represents.
Basically selling a home is a managed process of rejection. If, as the listing agent I am doing my job well, many potential buyers are looking at the home but obviously only one buyer actually buys it so the question comes up "what's wrong with my home?" Read this as "why don't they love it as much as I do". The answer is simple and obvious. The buying process is a complex series of compromises between features, amenities, price, location and a million other rational and irrational choices. Finding the best match is a process of rejection and acceptance. Add to this longer market times and it is sometimes a stressful and agonizing process for home sellers.
As much as I would like to say there is an easy solution to the problem there isn't any short cut here. In managing the listing there is nothing, absolutely nothing that can take the place of good communication between the seller, listing agent and feedback from the buyers agents. The feedback is invaluable in terms of determining where adjustments are needed in price, condition, in discerning potential obstacles and addressing objections. The added benefit is providing the assurance necessary to the seller that the home is being fairly evaluated by potential buyers.
Even though a high level of communication is provided doubt can still slip into the sellers mind and in this case I sometimes find myself reminding them that selling is a process and like all processes it takes time. If we are properly monitoring sales activity, pricing the property well and aggressively marketing the home is going to sell. If discouragement sets in I ask the seller to take a big red pen and circle the date on their calendar 30 days from today. The real estate market by nature is constantly changing and 30 days from today is a whole new real estate world.
You could be bringing your credit score down without realizing it. The main factors considered in creating your credit score is whether you pay your credit cards and bills on time but some factors that can shave points from your score are not as obvious and not as well known. They include:
* Ordering several new credit card accounts in a short period of time. Maybe you're just taking advantage of low-interest offers, but to credit scorers, it looks bad. Better yet, avoid credit cards altogether.
* Transferring a balance to a new card, and then closing the old card account. It's OK to transfer the balance, but keep the old account open. If you close it, you won't have as much total credit and your credit-utilization ratio will increase. The amount of debt you have is calculated for balances on individual accounts, as well as your overall credit limit.
* Charging a lot to a department store credit card. Say you have a $4,000 credit limit. You are buying new furniture, so you charge $3,500. Before that, you only owed $100 on your store card. Now, you owe $3,600 on a $4,000 card, which means available credit on that account will be way down. It's not good for your credit score. And the store charges high interest rates. Here's a better solution. Save for the item and pay cash. Cash talks, you can almost always negotiate a discount for cash so you avoid the credit card debt and save money as well.
* Other situations you might think are not related to your credit score include library book fines, parking tickets, back rents, medical bills and any other fees or charges you put off paying. In time, they will be turned over to a collection agency. Even after you pay them, the collection will stay on your credit report for seven years.
Remember to review your credit report on at least an annual basis. You can do this for free at https://www.annualcreditreport.com. There are lots of so called “free” credit report sites out there but this one is the real deal sponsored by the credit bureaus and is completely free with no membership or service fees required. Also, if you are turned down for credit because of anything revealed in your credit report you have the right to a free copy of your report. For more information on your rights under the Fair Credit Reporting Act go to http://www.ftc.gov/os/statutes/fcrajump.shtm
Guests on my fron porch... It's Spring
This blog was written by Brian Leavitt, Designated Broker of Northstone Real Estate Inc, and Northstone Mortgage.
Brian serves clients within the Northwest Multiple Listing Service. And specializes in residential re sale homes, condo's and land, and is uniquely qualified as a short sale negotiator holding both real estate and mortgage licenses.
You can contact Brian directly by phone at 800-806-3145 or by email at brian@northstone.net. Click here to view his client newsletter.
Brian is licensed with the Washington State Department of Licensing and the Washington State Department of Financial Institutions License number MLO-114864 and is a member of the Seattle King County Association of Realtors and Northwest Multiple Listing Service.
From Zillow April 27, 2010
"Dear Brian,
In reviewing your recent quote ZQ-XXXXXX, we see that this rate is too low. If you feel this is not the case please provide information with the details such as who is the investor, what is your base rate, and lastly what are the ad-ons.
Community Relations
Response April 27, 2010
"Dear Zillow,
I reviewed the quote, and in fact reviewed all of my recent quotes, and have verified that indeed the quote is correct. I suspect that once again my competitors are complaining about our rates. You might find this surprising but our clients NEVER see this as a problem. As far as telling you who my investor is that information is confidential. My base rate and all fees are disclosed in the quote. Perhaps the best way for you to verify these rates is to allow me to refinance your home or assist you in a purchase. Upon completion of a loan application I will be delighted to lock your loan as disclosed in the quote and guarantee this rate. What is your rate now?
If you have an opportunity I would appreciate it if you would blog about this on the Zillow website. I find it interesting that just because my competitors can't compete this is viewed as a problem.
A mutual friend of ours works for Zillow and I forwarded him a confidential copy of our wholesale pricing matrix so that you may verify the authenticity of these rates although he will not provide you with the investor details.
P.S. If you think this is low wait until you see our new JUMBO program rolling out this afternoon.
Brian Leavitt
Designated Broker
Northstone Mortgage
425-837-4700
broker@northstone.net"
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