Localism: New Jersey

Good news, bad news - FHA premiums up - Rates mixed

Thu, 28 Aug 2008 23:30:13 -0500

Nobody likes bad news, but it just keep coming it seems. This week billionaire investor Warren Buffet predicted the economy could be worse in 5 months and Atlanta Fed President Dennis Lockhart said home prices in could fall another 10-15%. Ok then - well what goes up comes down, and vice versa. Even now I see solid cash-on-cash investments, and we don't know where the bottom is. Time to prepare for the inevitable turnaround. Have a good long weekend folks! ... Paul

Fixed rates lower, ARMs up

"Interest rates for fixed-rate mortgages continue to drift down as reports of economic weakness persist. ARM rates, on the other hand, rose slightly after the Federal Reserve's Open Market Committee hinted it might increase the overnight bank lending rate" said Frank Nothaft, Freddie Mac vice president and chief economist. Freddy Mac rate surveys
1-3 week trend: Down 21+ days: Flat Market commentary

Glimmers of good news in US housing reports
While no one is ready to call the bottom of the worst housing collapse in decades, there were glimmers this week that the severity is waning... more

FHA hikes insurance premiums (again)

The Federal Housing Administration said earlier this week that it would hike its upfront mortgage premiums for all purchase money mortgages and full-credit qualifying refinances. It will add 25 basis points to its mortgage premium, bringing the upfront premium charged to most borrowers to 1.75 percent... more

Hollywood condo billed as paprazzi proof
A condo project in LA is promoting itself as the first paparazzi-proof building, complete with "Israeli-trained VIP" security guards... more

5 chances to buy hip-hop mansions
If you’re in the market for a house that lives large, check out the homes of hip-hop stars currently for sale... more

_________________________

The future belongs to those who believe
in the beauty of their dreams
(Eleanor Roosevelt)

An Open Letter to the Consumer - Do you keep trying until you hear what you want to hear?

Thu, 28 Aug 2008 22:51:04 -0500

Dear Consumer,

I truly admire someone that doesn't give up. I love a fighter !!!! Let begin to say that I am not god, nor am I perfect, or do I know everything. But I do take pride in knowing a lot and if I am not sure, I will ask first. But what about when you call 5 lenders and all of them tell you that they can't help you because of your credit score. But then you find a loan officer, such as myself, that says that I can help you. Because I can go done to a 500 credit score and that your 553 credit score is workable, even with a manual underwrite. But we have a debt to income ratio issue, that your front end is a 41% and I need to get it down to a 39%. And that FHA's guideline says that it is suppose to be a 31% front and a 43% back end.

So now you are getting frustrated and I am fearful that you might just go back out there to find someone that says yes to your credit, and doesn't worry about the ratio. I am also fearful because we both know that there is an error on your credit report. I told you what to do and when you get the letter, to send it to me so I can do a rapid re-score. Now, you might be thinking that once you get the credit score up, that you will go back to these other lenders that never brought up the fact that there might be a debt ratio problem.

Let's look at the fact that you told me that it took one loan officer 1 whole week, to tell you that your credit score was to low to do the deal. Rut row... Do you know that a good, experienced loan officer would have been able to tell you this at the moment they spoke to you about your credit scores. Which takes no more than 5 minutes. That is a major red flag to me. But you argue the point that they never had an issue about your ratios.

Let's dig a little deeper. You also work overtime and your overtime income this year is doubled than last year. Do you know that another guideline in most cases is that you need to average out 2 years of overtime? I truly doubt that 3 of the 5 loan officers that you spoke to, even asked you about your overtime for 2007. Why do I assume this? After 16 years of mortgage experience, I have seen this happen to more than a few clients. Just this month, I closed a client that went to a big named lender who approved them for $30,000 more than I could. They went to this big lender because they are one of the biggest and thought biggest is better. Not realizing that you are dealing with a person who works for that large lender. And no, bigger is not always better. What was sad, after speaking to this client, was finding out that her husband just changed jobs in October of 2007. And this loan officer was using his overtime with the new company to qualify them. That would have been one of those deals that would have been denied at the last minute.

Overall..... when shopping, you need not only to use your gut, but also seek out a true mortgage professional. Interview them as they are suppose to interview you. And be careful, because not all information on the internet is true. The inexperienced or the true sales person uses misleading information most of the time to bring you in. Just be smart and not go with someone that makes promises or guarantees. Again, more Red Flags !!!

Sincerely,

Knowledge and 16 years of Lending Experience

PS.... I must not be the only one that has been thinking this. Read what Adam Waldman had to say : The Value of Expert Advice

- FHA Loans - FHA Mortgages - Conventional Loans - VA Loans -

Experience & Knowledge at its BEST !!!

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For more information on FHA loans, please go to this link. The FHA Expert

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!

Top 10 Ridgewood NJ Websites - #5 and #6

Thu, 28 Aug 2008 22:06:29 -0500

These Great Ridgewood Websites provide comprehensive info on 2 of the best aspects of Ridgewood NJ - Ridgewood Schools and Ridgewood Businesses.

Ridgewood Public Schools Website - #5 on the Ridgewood Front Porch list.

The Ridgewood Public Schools site is a great resource for parents of current Ridgewood students and for folks considering a move to Ridgewood NJ alike. The site is pack with info on school events, curriculum, faculty and much more.

The Ridgewood Chamber of Commerce Site - #6 on the Ridgewood Front Porch list.

The Ridgewood Chamber of Commerce website is great for Ridgewood Business Owners and even better for Ridgewood residents and folks in the surrounding area. You can find everything you need on the Chamber Site from a list of restaurants, shops, professional services and much more.

You can also click here for my list of trusted local businesses in the Ridgewood Area.

If you would like more information on anything related to Ridgewood NJ please leave a comment here or click here to contact me.

To view all homes currently for sale in Ridgewood NJ click here Ridgewood NJ Homes for Sale.

To view the original article please click below:

Top 10 Ridgewood NJ Websites - #5 and #6

Top 10 Ridgewood NJ Websites - The Blogs

Thu, 28 Aug 2008 22:03:09 -0500

The Ridgewood Blog and Ridgewood Views are 2 Ridgewood "Must Reads".

The Ridgewood Blog - #3 on our Top Ten List.

There are many great websites and blogs focused on Ridgewood NJ so it was hard to pick just 10. Below are two of my favorite Ridgewood Sites. The Ridgewood Blog and Ridgewood Views are actually blogs, not websites, but that distinction is mostly for geeks like me.

Reading these two Ridgewood Blogs keep you up to date on everything going on in Ridgewood. They will also usually give you opposing, but equally insightful, viewpoints on every issue. Reading The Ridgewood Blog and Ridgewood Views is like having our very own version of Point-Counterpoint or Hannity and Colmes right here in Ridgewood.

Below are a few sample links that are representative of what you can find at these excellent Ridgewood Blogs.

Ridgewood Views #4 on our Top Ten List.

Ridgewood Views

Recent post that shows the lively banter between the two Ridgewood Blogs.

The Ridgewood Parking Garage Debate.

The Ridgewood Blog

Investigative post (complete with photos) on the baseball field that is Not being built at Citizens Park.

Valley Hospital Poll.

Look for the remainder of Ridgewood's Top Sites coming soon.

To view the original article please click below:

Top 10 Ridgewood NJ Websites - The Blogs

Editors Note - The Ridgewood Front Porch will not be part of this top 10 list since we are the ones creating the lists. There just might be the suggestion of a bias had we ranked our own Blog.

The numbers scare

Thu, 28 Aug 2008 21:08:16 -0500

The numbers that we hear scare us. The market is down 16%, home sales are down 20%, home values are down 25%, bankruptcies have exceeded records. Yet Americans have been here and we will overcome.

Some of you are old enough to remember the S & L crisis. A lot of banks went under. The other day they claimed that 190 banks are on the watch list. In the 1990's they had over 1900 banks on the watch list.

We need to keep our shoulders and chins up. We will be fine. This too shall pass.

Christopher J. Onwuasoanya