If the last time you looked at your mortgage was when you closed on your loan, it's time to take it out for an annual once over. New loan programs and opportunities to leverage your home equity can bring you lower mortgage payments and new investment opportunities.
Is a fixed rate mortgage the best choice for you?
Many of us opt for the certainty of a 20 year or 30 year fixed rate mortgage when we get our first mortgage. If you anticipate selling your home within the next 10 years, one of our new Adjustable Rate Mortgages (ARMS) loans may be a better financial fit for you. ARM rates can fluxuate monthly or be fixed for as long as 10 years. These loans typically have a lower fixed rate than a traditional 20 or 30 year mortgage. The savings you receive can well be worth the switch depending upon your goals and objectives.
Are you paying for Private Mortgage Insurance (PMI)?
There are a lot of new loan programs available that can help you eliminate PMI, even if you have less than 20% equity in your home. The monthly savings adds up quickly. This money can be put to better use to help you achieve other short-term and long-term financial goals.
Are your taxes and insurance up to date?
Even though your mortgage servicer is responsible for paying your taxes and insurance out of your escrow account, it just makes sense to periodically check to see that these payments are being made properly. While you're at it, you'll want to review your homeowner's insurance policy. It's a good idea to review your policy every two to three years to make sure it covers recent home improvements, replacement costs for the contents of your home, and that its reconstruction coverage is keeping pace with inflation.
Do you have a Home Equity Line of Credit (HELOC) for emergencies?
Many homeowners are making the proactive choice to secure a Home Equity Line of Credit (HELOC) for emergencies. A HELOC is a revolving line of credit that only charges interest when you actually draw money from the line of credit. As you repay the balance of the draw, the credit becomes available again. Securing a HELOC in advance can be a great help if you're ever laid off or have an unexpected medical or other emergency.
How's your credit report?
The information in your credit report has a huge impact on whether or not you will again qualify for a mortgage loan. That's why it's important to periodically check your credit report. Now it's even easy to do so. A recent amendment to the federal Fair Credit Reporting Act (FCRA) mandates that each credit reporting company provide you with a free copy of your credit report, at your request, once a year. To request your free credit report, visit http://www.annualcreditreport.com/
Are you making the most of your home's equity?
With rising home prices, you may have more equity in your home than you realize. Taking out a home equity loan to payoff credit card debt, car loans and other higher interest debts makes good financial sense.
Is it time to refinance?
The timing might be right to refinance your mortgage loan. New rates may help you significantly lower your monthly payment. Or you might want to "cash out" some of the built-up equity in your home, which you can use to consolidate debt, improve your home, take a vacation - whatever! Perhaps by refinancing you can even pay off your mortgage sooner! We'll work with you to determine if the timing is right to change your loan program, considering your cash on hand, how likely you are to sell your home in the near future, and what effect refinancing might have on your future plans.
Visit our website to receive my Free Homebuying Guide and Insider Mortgage Reports like Money & Time Saving Tips For A Successful Move. You can also browse my Resources section at http://www.smartrate.com/, fill-out a FREE No-Obligation Secure Online Loan Application, or call me in my Michigan office at 586-323-2920. I am here to help you with all your mortgage needs.
Monday, November 27, 2006
Wednesday, November 22, 2006
Much to be Thankful For
Dear Friends,
It's true, we have much to be thankful for…in spite of the difficult real estate market we find ourselves in.
Personally, I have a supportive and loving family, my health is good, I live in the best country in the world, and I am at peace with myself.
I wish you and yours a safe and happy holiday.
It's true, we have much to be thankful for…in spite of the difficult real estate market we find ourselves in.
Personally, I have a supportive and loving family, my health is good, I live in the best country in the world, and I am at peace with myself.
I wish you and yours a safe and happy holiday.
Monday, November 20, 2006
Winterizing Your Home
Old Man Winter is settling in for a long chilly season. Before the temperatures dip too far south, follow these simple guidelines to winterize your home and save money on utilities.
Inside Your Home
Have your furnace system serviced to ensure it's working efficiently and not emitting carbon monoxide.
Clean permanent furnace filters and replace paper or disposable filters.
Replace the batteries in smoke and carbon monoxide detectors.
If you have a wood stove or fireplace, have your chimney swept thoroughly. It should be cleaned before the soot build up reaches one-fourth inch thickness inside the chimney flue.
Check your hot water heater for leaks and maintain proper temperature setting (120 degrees recommended by Department of Energy). On older water heaters with less insulation, for every 10 degrees Fahrenheit you lower the temperature, you save 6 percent of your water heating energy.
Check the attic to see if insulation needs to be added or replaced. This is the most significant area of heat loss in many homes, so it is also important to see that it has proper ventilation. Inadequate ventilation could lead to premature deterioration of the insulation materials. You may also need to check insulation in exterior walls, crawl spaces and along foundation walls.
Check all windows and doors for air leaks. Install storm windows and putty, caulk or add weather stripping as needed.
Check basement and cellars for seal cracks or leaks in walls and floor.
Make sure all vents are clean and operating properly.
Clean and vacuum baseboard heaters, heating ducts and vents.
Remove or winterize air conditioning units.
Outside Your Home
Store or cover outdoor furniture, toys and grill.
Purchase rock salt for melting snow and a shovel or snow blower if you don't already have one.
Make sure you have the right kind of gas and oil on hand for your snow blower in the case of an unexpected snowstorm.
Caulk joints and minor cracks on exterior walls and siding.
Look for deteriorating finishes. Minor problems can be patched to preserve the wood. Put bigger jobs, such as scraping and refinishing painted or stained areas, on the calendar for next spring or early summer.
Drain and shut off sprinkler systems and other exterior water lines to avoid frozen and broken pipes. Leave all taps slightly open.
Insulate exterior spigots and other pipes that are subject to freezing but can't be drained or shut off.
Rake and compost leaves and garden debris, or put out for yard-waste pickup.
Clean storm drains, gutters and other drain pipes.
Check the foundation for proper drainage. To do this, spray yard with a hose to see if water runs away from the house. A little shoveling to reshape the earth next to the house may make the water run away from the foundation.
Make sure dirt or piles of wood don't come into contact with or touch siding, inviting termites and carpenter ants into the house.
Seal driveway and walkway cracks, if needed, before ground freezes regularly.
Inspect the roof for loose, damaged or missing pieces.
Check attic vent openings for nests or other blockages.
Make sure you register to receive my Free Homebuying Guide and Insider Mortgage Reports, browse my Resources section at www.smartrate.com, fill-out a FREE No-Obligation Secure Online Loan Application, or call me in my Michigan office at 586-323-2920. I am here to help you with all your mortgage needs.
Inside Your Home
Have your furnace system serviced to ensure it's working efficiently and not emitting carbon monoxide.
Clean permanent furnace filters and replace paper or disposable filters.
Replace the batteries in smoke and carbon monoxide detectors.
If you have a wood stove or fireplace, have your chimney swept thoroughly. It should be cleaned before the soot build up reaches one-fourth inch thickness inside the chimney flue.
Check your hot water heater for leaks and maintain proper temperature setting (120 degrees recommended by Department of Energy). On older water heaters with less insulation, for every 10 degrees Fahrenheit you lower the temperature, you save 6 percent of your water heating energy.
Check the attic to see if insulation needs to be added or replaced. This is the most significant area of heat loss in many homes, so it is also important to see that it has proper ventilation. Inadequate ventilation could lead to premature deterioration of the insulation materials. You may also need to check insulation in exterior walls, crawl spaces and along foundation walls.
Check all windows and doors for air leaks. Install storm windows and putty, caulk or add weather stripping as needed.
Check basement and cellars for seal cracks or leaks in walls and floor.
Make sure all vents are clean and operating properly.
Clean and vacuum baseboard heaters, heating ducts and vents.
Remove or winterize air conditioning units.
Outside Your Home
Store or cover outdoor furniture, toys and grill.
Purchase rock salt for melting snow and a shovel or snow blower if you don't already have one.
Make sure you have the right kind of gas and oil on hand for your snow blower in the case of an unexpected snowstorm.
Caulk joints and minor cracks on exterior walls and siding.
Look for deteriorating finishes. Minor problems can be patched to preserve the wood. Put bigger jobs, such as scraping and refinishing painted or stained areas, on the calendar for next spring or early summer.
Drain and shut off sprinkler systems and other exterior water lines to avoid frozen and broken pipes. Leave all taps slightly open.
Insulate exterior spigots and other pipes that are subject to freezing but can't be drained or shut off.
Rake and compost leaves and garden debris, or put out for yard-waste pickup.
Clean storm drains, gutters and other drain pipes.
Check the foundation for proper drainage. To do this, spray yard with a hose to see if water runs away from the house. A little shoveling to reshape the earth next to the house may make the water run away from the foundation.
Make sure dirt or piles of wood don't come into contact with or touch siding, inviting termites and carpenter ants into the house.
Seal driveway and walkway cracks, if needed, before ground freezes regularly.
Inspect the roof for loose, damaged or missing pieces.
Check attic vent openings for nests or other blockages.
Make sure you register to receive my Free Homebuying Guide and Insider Mortgage Reports, browse my Resources section at www.smartrate.com, fill-out a FREE No-Obligation Secure Online Loan Application, or call me in my Michigan office at 586-323-2920. I am here to help you with all your mortgage needs.
Thursday, November 16, 2006
Michigan Foreclosures: Shock, Awe and ARMs
A friend of mine sent me a link to a recent Detroit News article.
It talks about how rising mortgage payments are putting thousands of homeowners in extreme financial difficulties. It is pretty disturbing yet very familiar to me. You see, most people think that majority of bank foreclosures in Michigan are happening because of layoffs in the automotive industry. I have been saying for two years that that is NOT the whole story.
I know personally at least 8 people whose mortgages have jumped through the roof in the last six months and all of a sudden they are finding that making this mortgage payment is playing havoc with their money. And YES they still have their jobs. But a $1000 per month payment becomes $1400 per month payment…That is a shock to your bank account.
So how come all of these homeowners are not calling their local mortgage companies in droves to refinance and get rid of their high payments? Well they are and they are not hearing anything good coming out of other end of that phone call. Either their credit is bruised to the point where they cannot get the best rate OR the value of their home has not appreciated enough in the last 2 or 3 years to justify doing a refinance. Remember most of these folks bought these houses either No Money Down only two or three years ago. I know so far Michigan has seen staggering number of bank foreclosures in 2006. I think 2007 will break all records.
What do you think???
It talks about how rising mortgage payments are putting thousands of homeowners in extreme financial difficulties. It is pretty disturbing yet very familiar to me. You see, most people think that majority of bank foreclosures in Michigan are happening because of layoffs in the automotive industry. I have been saying for two years that that is NOT the whole story.
I know personally at least 8 people whose mortgages have jumped through the roof in the last six months and all of a sudden they are finding that making this mortgage payment is playing havoc with their money. And YES they still have their jobs. But a $1000 per month payment becomes $1400 per month payment…That is a shock to your bank account.
So how come all of these homeowners are not calling their local mortgage companies in droves to refinance and get rid of their high payments? Well they are and they are not hearing anything good coming out of other end of that phone call. Either their credit is bruised to the point where they cannot get the best rate OR the value of their home has not appreciated enough in the last 2 or 3 years to justify doing a refinance. Remember most of these folks bought these houses either No Money Down only two or three years ago. I know so far Michigan has seen staggering number of bank foreclosures in 2006. I think 2007 will break all records.
What do you think???
Tuesday, November 14, 2006
Interested In an Interest Only Loan?
You have finally found the property of your dreams. The contract has been signed and you are now in the process of finding exactly how you will be living and paying off the property for the next few years. Your lender may have already contacted you and given you the options. When the question comes up of what kind of loan you want, be prepared for the answer that will benefit you the most.
One of the major types of loans that you may be offered is an interest only loan. This loan is great for some that are getting involved in a home, but for others may not be as beneficial. This loan works by you first paying off the bank interest that is added as a percentage to your loan. After the interest is completely paid off, then you start paying off the house itself.
If you are looking at an interest only loan, you will want to make sure that the standard interest rates at the time are in the lower percentage. Interest only loans will have two types of interest rates that may be applied. The first is a fixed interest rate, which will mean that the percentage you pay will stay the same the entire time that you have the loan. The second will be a variable interest, where it will fluctuate according to the economy. This type of interest rate is good if you want to pay higher or lower amounts at different times, but not good if your pay check doesn't have the same flexibility.
The interest that you get with an interest only loan will be determined by the lender and how they decide to set up your loan. It may also be determined by the amount of the down payment that you make and specific rules that are set to the loan. Before signing the papers, make sure that you know how all of these apply and what it means.
If you want to make sure that you get the best deal, then it will be important to know what the individual rules are. By doing this, you can ensure that your payments are beneficial to you as well as everyone else.
Make sure you register to receive my Free Homebuying Guide and Insider Mortgage Reports, browse the Resources section at www.smartrate.com, fill-out a FREE No-Obligation Secure Online Loan Application, or call me in my Michigan office at 586-323-2920. I am here to help you with all your mortgage needs.
One of the major types of loans that you may be offered is an interest only loan. This loan is great for some that are getting involved in a home, but for others may not be as beneficial. This loan works by you first paying off the bank interest that is added as a percentage to your loan. After the interest is completely paid off, then you start paying off the house itself.
If you are looking at an interest only loan, you will want to make sure that the standard interest rates at the time are in the lower percentage. Interest only loans will have two types of interest rates that may be applied. The first is a fixed interest rate, which will mean that the percentage you pay will stay the same the entire time that you have the loan. The second will be a variable interest, where it will fluctuate according to the economy. This type of interest rate is good if you want to pay higher or lower amounts at different times, but not good if your pay check doesn't have the same flexibility.
The interest that you get with an interest only loan will be determined by the lender and how they decide to set up your loan. It may also be determined by the amount of the down payment that you make and specific rules that are set to the loan. Before signing the papers, make sure that you know how all of these apply and what it means.
If you want to make sure that you get the best deal, then it will be important to know what the individual rules are. By doing this, you can ensure that your payments are beneficial to you as well as everyone else.
Make sure you register to receive my Free Homebuying Guide and Insider Mortgage Reports, browse the Resources section at www.smartrate.com, fill-out a FREE No-Obligation Secure Online Loan Application, or call me in my Michigan office at 586-323-2920. I am here to help you with all your mortgage needs.
Friday, November 10, 2006
Top Ten Terms for Loans
Everyone knows that you should never sign on the dotted line without reading the contract. This same term applies to loans. Signing a loan without knowing the terms and what everything means can be detrimental to your finances, credit and future investments. Before you sign on the dotted line, make sure that you know these terms and how they will apply to you. If you have questions, call me in my Michigan office at 586-323-2920. I am here to help you with all your mortgage needs.
1. Interest rate. The interest rate is the percentage of your loan that is added on every month. The percentage will vary according to the economy and will make a difference in your payments.
2. Fixed Rate. A fixed rate will be an interest rate that stays at the same percentage throughout the entire period of your loan.
3. Variable Rate. A variable rate will change according to the economy and the charts that are stating what the rates should be for interest. A variable rate usually changes every year and adjusts according to a specific given range of percentages.
4. Principal. The principal is what you will be paying on your actual house. Whatever you pay on your principal is what you will see in the end as your investment.
5. Escrow. This is similar to a savings account of your loan. Whatever you put in escrow will accumulate without paying directly into the loan. At the end of the term you can use it to finish paying off the loan or to invest in another loan.
6. Title. A title will be what you get to your home after it is officially yours, stating that the property belongs to you.
7. Deed. A deed will most often be used as a title for a commercial area. Instead of giving ownership it shows that the property is leased to the one who is using it as a business.
8. Home Equity. This is a loan or line of credit that you can get for your home. It will finance up to eight percent of your other loan and get paid back later. This helps if you want to consolidate loans or invest more into the property.
9. Appraisal. After an inspection of the home is made, an appraisal will be made. This will be an estimated value of what the home is worth.
10. Equity. This will be the actual amount of the property that you own. Most likely, it is what is being paid off of your principal amount.
Once you know some of these basic terms, you will be able to expand on your knowledge and find the exact loan that will fit your needs. These basic definitions will help you in making the right decision for the type of loan that you want.
Make sure you register to receive my Free Homebuying Guide and Insider Mortgage Reports, browse my Resources section at www.smartrate.com, fill-out a FREE No-Obligation Secure Online Loan Application, or call me in my Michigan office at 586-323-2920. I am here to help you with all your mortgage needs.
1. Interest rate. The interest rate is the percentage of your loan that is added on every month. The percentage will vary according to the economy and will make a difference in your payments.
2. Fixed Rate. A fixed rate will be an interest rate that stays at the same percentage throughout the entire period of your loan.
3. Variable Rate. A variable rate will change according to the economy and the charts that are stating what the rates should be for interest. A variable rate usually changes every year and adjusts according to a specific given range of percentages.
4. Principal. The principal is what you will be paying on your actual house. Whatever you pay on your principal is what you will see in the end as your investment.
5. Escrow. This is similar to a savings account of your loan. Whatever you put in escrow will accumulate without paying directly into the loan. At the end of the term you can use it to finish paying off the loan or to invest in another loan.
6. Title. A title will be what you get to your home after it is officially yours, stating that the property belongs to you.
7. Deed. A deed will most often be used as a title for a commercial area. Instead of giving ownership it shows that the property is leased to the one who is using it as a business.
8. Home Equity. This is a loan or line of credit that you can get for your home. It will finance up to eight percent of your other loan and get paid back later. This helps if you want to consolidate loans or invest more into the property.
9. Appraisal. After an inspection of the home is made, an appraisal will be made. This will be an estimated value of what the home is worth.
10. Equity. This will be the actual amount of the property that you own. Most likely, it is what is being paid off of your principal amount.
Once you know some of these basic terms, you will be able to expand on your knowledge and find the exact loan that will fit your needs. These basic definitions will help you in making the right decision for the type of loan that you want.
Make sure you register to receive my Free Homebuying Guide and Insider Mortgage Reports, browse my Resources section at www.smartrate.com, fill-out a FREE No-Obligation Secure Online Loan Application, or call me in my Michigan office at 586-323-2920. I am here to help you with all your mortgage needs.
Thursday, November 09, 2006
Welcome
This is my first post on this new blog. It's designed to be a resource full of insider secrets that will allow you to choose the loan program best suited to your financial needs.
I make it fast and easy for all kinds of people-including first-time homebuyers, small business owners, and homebuyers with perfect or less-than-perfect credit to get the loan you need for the home you want.
Make sure you register to receive my Free Homebuying Guide and Insider Mortgage Reports, browse my Resources section at www.smartrate.com, fill-out a FREE No-Obligation Secure Online Loan Application, or call me in my Michigan office at 586-323-2920. I am here to help you with all your mortgage needs.
I make it fast and easy for all kinds of people-including first-time homebuyers, small business owners, and homebuyers with perfect or less-than-perfect credit to get the loan you need for the home you want.
Make sure you register to receive my Free Homebuying Guide and Insider Mortgage Reports, browse my Resources section at www.smartrate.com, fill-out a FREE No-Obligation Secure Online Loan Application, or call me in my Michigan office at 586-323-2920. I am here to help you with all your mortgage needs.
Subscribe to:
Posts (Atom)
