H Group Dallas Real Estate

Mileage Rates for 2010

Phil Hobson — Tue, 16 Feb 2010 17:11:00 GMT

Ted Seidel

Brazos National Bank
Phone: (972)239-9190
Fax: (972)314-9739
tseidel@mybrazosbank.com

Mileage Rates for 2010

If you drive a car, truck or van for work, you'll want to make sure you know the standard mileage rates that the Internal Revenue Service (IRS) has set for 2010.

These mileage rates are used to calculate deductible costs for driving an automobile for business, charitable, medical and moving purposes. As of January 1, 2010, the standard mileage rates for 2010 are as follows:

· Businesses = 50 cents per mile driven
· Medical or moving = 16.5 cents per mile driven
· Charitable organizations = 14 cents per mile driven

These are slightly lower than last year's rates due to generally lower transportation costs compared to a year ago.

But before you calculate your deduction, make sure you qualify. The IRS reminds taxpayers that they cannot use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.

Remember, although the IRS provides the standard mileage rate for ease and convenience, you're not required to use it. If you prefer, you can calculate the actual costs of using your vehicle instead of using the standard mileage rates.

Mortgage Interest Rates for Fixed Rate Mortgages*

Rates as of Tuesday, 16th February, 2010:

	Term	Conforming	APR	Payment per $1,000	Jumbo	APR	Payment per $1,000
30-Yr. fixed	360	4.75%	4.833%	$5.22	5.75%	5.860%	$5.84
15-Yr. fixed	180	4.25%	4.392%	$7.52	5.5%	5.684%	$8.17
7-Yr. fixed ARM	360	4%	4.079%	$4.77	5.25%	5.357%	$5.52
5-Yr. fixed ARM	360	3.75%	3.828%	$4.63	4.75%	4.853%	$5.22
3-Yr. fixed ARM	360	3.75%	3.828%	$4.63	3.55%	3.646%	$4.52
5-Yr. Interest Only	360	3.875%	3.954%	$3.23	5%	5.105%	$4.17
7-Yr. Interest Only	360	4.125%	4.205%	$3.44	5.375%	5.482%	$4.48
3-Yr. Interest Only	360	3.875%	3.954%	$3.23	4.2%	4.300%	$3.50

*Rates are subject to change due to market fluctuations and borrower's eligibility.

The above rates are for a primary residence $400,000 conventional/$600,000 jumbo purchase with 1% origination fee, 20% minimum down payment , 740+ credit score and 25 day lock. Additional down payment and loan programs are available.

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Ted Seidel
Brazos National Bank
7616 LBJ Freeway Suite 650
Dallas, TX 75251

© Copyright 2010. All About News, Inc.

Phil Hobson, H Group, Prudential Texas Properties

www.hgroupdallas.com

I can Pre-Qualify Your Buyers In 10 Minutes

Phil Hobson — Tue, 16 Feb 2010 17:07:00 GMT

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Phil Hobson, H Group, Prudential Texas Properties

www.hgroupdallas.com

Ridgewood Park Wants Kids in Lakewood School

Phil Hobson — Tue, 16 Feb 2010 17:06:00 GMT

Ridgewood Park Wants Kids in Lakewood School

Posted on February 11th, 2010 10:38am by Jason Heid
Filed under Education, Local News, Media

The Advocate and Dallas.org are all over the story of a request by the Ridgewood Park neighborhood to be moved from the Rogers Elementary attendance zone into Lakewood Elementary. Rogers is rated academically acceptable while Lakewood is exemplary. Of course, we know that increasingly the state’s accountability system sort of cheats anyway, moving the goal posts.

The school board is looking at the request this morning during a briefing. The Dallas ISD administration is not recommending it be approved. Perhaps it’s because some of the affected homes are as close as 50 feet from Rogers Elementary.

Or maybe it’s because they’ve seen the research that says it’s about the parents, not the school, anyway.

Phil Hobson, H Group, Prudential Texas Properties

www.hgroupdallas.com

FOR SALE - Villas at Ash Creek Townhomes - 8807 Tudor & 8809 Tudor

Phil Hobson — Tue, 16 Feb 2010 01:32:00 GMT

Villas at Ash Creek, Dallas, TX 75228

8605 Ferguson Road #8807 & 8809, Dallas, TX 75228

PRICES REDUCED - BRING BACK YOUR BUYERS !!!

$284,900 - $299,900

( New Townhomes on Ash Creek with Fenced Backyards / Final 2 Remailing Units / Creekside Living )

( 3BR / 2.5BA / 2LA / 2,350sqft / 2 Stories / Master on First Level / Gated Community )

( Office Hours: Monday - Sunday from 12:00pm - 5:00pm)

Virtual Photo Tour - (Click Here)

Map Property

Phil Hobson, H Group, Prudential Texas Properties

www.hgroupdallas.com

FOR LEASE / FOR SALE - 3225 Turtle Creek, #1533, Dallas, TX 75219 (Renaissance Highrise)

Phil Hobson — Tue, 16 Feb 2010 01:30:00 GMT

3225 Turtle Creek, #1533, Dallas, TX 75219

List Price: $192,500 (revised)

MLS #: 11221932

Renaissance On Turtle Creek - Updated 1BR / 1BA / 1LA / 831 sqft Condo with upgraded

Kitchen (Cabinets, Granite and SS Appliances). This condo offers many upgrades; including the

kitchen, flooring and lighting. Views from this condo's balcony are of the pool and Turtle Creek.

Being located on the 15th floor (Suite Floor), there is additional security access provided by fob

technology. The unit offers an open floorplan between the kitchen and the living area. The

Renaissance offers a community pool & patio, on-site fitness center, on-site business center,

valet service, and security entrance access.

A Must See!!! Please Click Photo Link Below.

Virtual Photo Tour - (Click Here)

Map Property

Phil Hobson, H Group, Prudential Texas Properties

www.hgroupdallas.com

FOR SALE / FOR LEASE - 1122 Jackson Street #602 (New Lease Price)

Phil Hobson — Tue, 16 Feb 2010 01:28:00 GMT

1122 Jackson Street #602, Dallas, TX 75202

List Price: $238,000

Lease Price: $1,400 / month (revised)

MLS #: 11310188

Beautiful 2BR / 1BA Open Floorplan Loft in the Historic SoCo Loft Building with 1,411

sqft of Living Space, 2 Assigned Parking Spaces, Beautiful Upgraded Hardwood Floors,

Updated Kitchen Cabinets with Granite Countertops and Stainless Steel Appliances,

Upgraded Lighting and a Convenient Downtown Location. The SoCo Loft Building

offers On-Site Fitness Center, Rooftop Community Pol and Patio/Deck, Secure

Entrance Access, On-Site Media Room and is located close to restaurants and shops.

The SoCo Loft Building is located on Jackson between Griffin and Field Streets.

A Must See!!! Please Click Photo Link Below.

Virtual Photo Tour - (Click Here)

Map Property

Phil Hobson, H Group, Prudential Texas Properties

www.hgroupdallas.com

Open House in Dallas on Sunday

Phil Hobson — Mon, 15 Feb 2010 23:37:00 GMT

Dallas, Dallas County - We invite everyone to visit our open house at 8807-8605 Ferguson Road on February 21 from 12:00 PM to 5:00 PM.

Property information

Phil Hobson, H Group, Prudential Texas Properties

www.hgroupdallas.com

Open House in Dallas on Wednesday

Phil Hobson — Mon, 15 Feb 2010 23:37:00 GMT

Dallas, Dallas County - We invite everyone to visit our open house at 5635 Merrimac Avenue on February 17 from 9:30 AM to 12:00 PM.

Property information

Phil Hobson, H Group, Prudential Texas Properties

www.hgroupdallas.com

Open House in Dallas on Saturday

Phil Hobson — Mon, 15 Feb 2010 23:36:00 GMT

Dallas, Dallas County - We invite everyone to visit our open house at 8807-8605 Ferguson Road on February 20 from 12:00 PM to 5:00 PM.

Property information

Phil Hobson, H Group, Prudential Texas Properties

www.hgroupdallas.com

FOR SALE - 10223 Lakemere Drive, Dallas, TX 75238 - L Streets Home ($179,900)

Phil Hobson — Mon, 15 Feb 2010 21:56:00 GMT

10223 Lakemere Drive, Dallas, TX 75238

List Price: $179,900

MLS #: 11347012

Wonderful location in highly desired Lake Highlands. This charming L streets home has

great curb appeal, hardwoods floors, an open floorplan between kitchen and living area,

crown mouldings, modern colors, original square wood-paneled walls in living room

and original accordian folding doors between living areas, updated roof (2003),

updated AC (2003), large fenced backyard, and covered patio (2008).

A Must See!!! Please Click Photo Link Below.

Virtual Photo Tour - (Click Here)

Map Property

MLS Listing

Phil Hobson, H Group, Prudential Texas Properties

www.hgroupdallas.com

Market Comment - Week of February 15th, 2010

Phil Hobson — Mon, 15 Feb 2010 21:50:00 GMT

Market Comment - Week of February 15th, 2010

Mortgage bond prices fell last week pushing mortgage interest rates slightly higher. The early part of the week saw a reversal of the recent flight to quality buying of US investments as talks hinted of a Greek bailout by Germany. German Chancellor Merkel dashed those hopes late in the week causing turmoil in the European Union. As a result global investor funds returned to the US bond market. Rates improved Friday morning, which helped recover some of the earlier losses. Unfortunately rates still rose overall for the week by about 1/8 of a discount point.

The consumer price index Friday will be the most important release this week. The other inflation data and the shortened trading week may also factor into mortgage interest rate changes. The typical back and forth movements of stocks and bonds will also likely take place as uncertainty continues to permeate the financial markets.

Economic Factors
Economic Indicator	Release Date Time	Consensus Estimate	Analysis
Presidents Day	Monday, Feb. 15, 2010	None	Important. Extended holiday weekend may result in volatility when trading resumes Tuesday.
Housing Starts	Wednesday, Feb. 17, 2010	Up 0.4%	Important. A measure of housing sector strength. Weakness may lead to lower rates.
Industrial Production	Wednesday, Feb. 17, 2010	Up 0.8%	Important. A measure of manufacturing sector strength. Weakness may lead to lower rates.
Capacity Utilization	Wednesday, Feb. 17, 2010	72.2%	Important. A figure above 85% is viewed as inflationary. Weakness may lead to lower rates.
Producer Price Index	Thursday, Feb. 18, 2010	Up 0.7%, Core up 0.1%	Important. An indication of inflationary pressures at the producer level. Lower figures may lead to lower rates.
Leading Economic Indicators	Thursday, Feb. 18, 2010	Up 0.5%	Important. An indication of future economic activity. Weakness may lead to lower rates.
Philadelphia Fed Survey	Thursday, Feb. 18, 2010	17.5	Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.
Consumer Price Index	Friday, Feb. 19, 2010	Up 0.3%, Core up 0.2%	Important. A measure of inflation at the consumer level. Lower figures may lead to lower rates.

Globalization

Economic globalization is the increasing interdependence of national economies through trade, finances, and technology. While economists debate the pros and cons of globalization, the fact remains that globalization is not new and continues to expand.

As a driving force in the global economy, the US often benefits when foreign economies struggle. A prime example is the concern of a Greek economic collapse. Unlike a corporation, a country cannot file for bankruptcy when they can't make debt payments. One remedy in situations like this has been restructuring the debt, which is mired in uncertainty for investors. The bigger global problem is the fear that a default by one member of the European Union could ripple throughout all the other eurozone countries. In times like this, investors often move funds to safe havens in what is called a "flight to quality." This is exactly what we saw Friday morning as US debt instruments saw an influx of foreign investment. Bond prices rose which caused mortgage interest rates to fall that morning. From a short-term perspective that is great for homebuyers and those refinancing. The long-term effects are less certain. A reversal could easily take place if the EU can prevent a default. This is a prime reason to take advantage of rate dips when they occur.

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Phil Hobson, Prudential Texas Properties

www.hgroupdallas.com

High-end Homeowners Now Feeling the Pinch

Phil Hobson — Fri, 12 Feb 2010 16:14:00 GMT

High-end Homeowners Now Feeling the Pinch

By Roger Showley Print Article

RISMEDIA, June 16, 2009-(MCT)-The real estate slump has arrived in La Jolla, Rancho Santa Fe and other high-end San Diego County neighborhoods.

After holding their own in sales strength, sales of homes priced at $1 million or more started to fall a year after lower-priced homes hit the skids.

Now, instead of selling their multimillion-dollar homes at multimillion-dollar profits, some sellers are taking a bath or renting their properties while they wait for a sunnier day.

“The market is terrible,” said Jan Paulin, 58, who bought his 4,164-square-foot home on Hillside Drive in La Jolla for $2 million in 2000, put it on the market for $4.5 million last year and is now hoping to get $3.8 million.

If Paulin doesn’t get what he wants, he plans to rent it for $10,000 a month. Other high-end owners are following the same strategy, area agents say.

“I’d rather hold on to it for a while and wait it out until the market turns, and we can get some revenue in the meantime and at least cover the carrying costs,” Paulin said.

Yesterday in the Cielo project east of Rancho Santa Fe, Bill Menish, a former local TV anchor turned auctioneer, conducted an auction for a 5,000-square-foot home bought for $2.65 million in 2001. The highest bid was $1.965 million, which took 20 minutes to reach and was close to the seller’s reserve.

“The owners have a lot of equity in it, have moved into another house and would like to take their capital and move it into an alternative investment,” said listing agent Bill Taylor.

Through the first four months of the year, 337 homes priced at $1 million or more closed escrow, down 52.4% from the same time last year, according to MDA DataQuick.

Over the same period, sales of homes less than $1 million totaled 10,987, up 37.5%. The overall median price in April was $290,000, down 44% from the peak of $517,500 in November 2005.

“The low end has been driving the county sales higher, while the luxury market has typically remained extremely sluggish,” said DataQuick analyst Andrew LePage, adding, “Wealthy folks have taken huge hits that they haven’t taken in a long time, if ever.”

At the current rate, it would take nearly four months to sell all homes listed for less than $1 million. For homes priced at $1 million or more, the backlog stands at about 30 months, according to the San Diego Association of Realtors.

Obviously, the top end represents a small fraction of the local inventory.

According to Zillow.com, 44,500, or 5.9% of the nearly 750,000 homes the online company tracks locally are worth $1 million or more. They are generally concentrated in coastal communities with a few scattered throughout the rest of the county.

But of the 13,010 homes on the local multiple listing service last week, 2,537, or 19.5%, carry asking prices in the seven figures. The National Association of Realtors reports that the national share of sales above $750,000 is half of what it was two years ago.

In San Diego County, the drop-off of sales of homes at $1 million or more is even more dramatic, down from 73% this year from 2006’s peak rate.

“I’ve been doing this since 1975 and never seen anything quite as volatile,” said Willis-Allen Real Estate agent Linda Daniels.

Daniels said buyers are playing it cool, offering 40% below asking price
and walking away if sellers don’t cave.

“It’s wild,” she said.

And yet, Mike O’Brien, 38, wasn’t fazed when he put his waterfront home in Bird Rock up for sale for $8 million, three years after moving in. O’Brien and his wife, Julie, 34, paid $6.4 million and put $1.5 million into improvements.

“We’ve had a lot more showings recently,” said O’Brien, an online business entrepreneur. “I feel like we’re seeing more serious buyers. One group has come back three times.”

The O’Briens are selling because they are expecting their fourth son and would rather move than remodel.

O’Brien said the subject of real estate hardly comes up in conversations with friends: “The only thing families talk about less than sex is finances.”

There are several reasons behind the woes faced by the wealthy, experts say. Upper-end buyers have lost money in the stock market, have less to spend and, like many other San Diegans, are worried about their job security.

Those who are able to buy find that a “jumbo” loan — more than $697,500 — is hard to get and carries a premium interest charge of one or more percentage points above the norm.

“The jumbo market is not functioning,” said Lawrence Yun, chief economist at the National Association of Realtors. “We hear from our members every day — ‘Fix the jumbo market, fix the jumbo market.’ ”

Dave McDonald, president of the San Diego chapter of the California Association of Mortgage Brokers, said to get the few jumbos available, “you have to basically jump through hoops.”

Underwriting standards have toughened up for high-rollers as well as everyone else, meaning buyers must have near-perfect credit scores and verifiable means of income to get the best terms. Anyone who bought on more liberal terms five years ago is likely to get a rejection notice from their bank if they want the same deal.

“You can’t buy today because you can’t get a loan, no matter how golden you are,” said Maxine Gellens, an agent with Prudential California Realty in La Jolla.
When their offers are accepted, buyers sometimes have to endure multiple appraisals by lenders before a loan closes.

“It is definitely becoming more difficult to find good comparable sales for the variety of characteristics that million-dollar properties present,” said David Eshelman of Eshelman Appraisals Inc.

The problem is most critical for what David Adamo, president of Luxury Mortgage in Stamford, Conn., calls the “HENRYs” — “high-earning but not rich yet” dual-income households — those who earn between $250,000 and $500,000 annually. They can’t buy what they want because of the difficulty of securing a jumbo loan.
To get around the financial roadblocks, some buyers have enough assets to make all-cash offers.

“Cash buyers are getting wonderful values because they can pull the trigger,” said Lou Martin, a Prudential agent in Rancho Santa Fe.

As for the future, history does not portend good times for the rest of the year. Since 2001, the proportion of million-plus homes sold in the first four months was always higher than in than the last eight months, except in 2002 to 2004.

If that trend continues this year, the 2.98 percentage share this January-April would be the high point of the year.

Andy Nelson, president of Willis-Allen, said top-tier buyers may upend history as they survey the relative bargains available and press sellers to lower prices even more than the 20% to 25% reduction so many already have absorbed.

“Yes, their existing homes may not be worth as much, but there are some great values out there to upgrade their location or move to a house on a single level,” Nelson said. “They may have an opportunity in the next few months to get something because we think the bottom is close at hand.”

Lew Sichelman, a nationally syndicated writer based in Washington, contributed to this story.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Phil Hobson, Prudential Texas Properties

www.hgroupdallas.com

Are Tighter Appraisals Hurting Home Sales?

Phil Hobson — Fri, 12 Feb 2010 16:13:00 GMT

Are Tighter Appraisals Hurting Home Sales?

By Nancy Sarnoff Print Article

RISMEDIA, June 22, 2009-(MCT)-Less than a week after putting his newly renovated house in Idylwood, Texas, on the market, Derrick DeCristofaro accepted a full-price offer of $242,900 on the 1940 bungalow.

But the appraisal on the 1,780-square-foot home came in at just $206,000. The buyer couldn’t come up with enough cash to make up the difference and DeCristofaro wasn’t willing to drop the price, so the deal fell through.

On top of already sluggish home sales, are appraisals becoming the newest threat to the local housing market?

Real estate experts said sales are collapsing because appraisers are being more conservative and valuing homes for less than what buyers have agreed to pay. Some owners can’t refinance because appraisers say their homes are worth less than they had counted on.

In DeCristofaro’s case, the low appraisal affected the would-be buyer’s ability to get a mortgage for the contracted price.

“Their lender naturally wouldn’t approve that,” DeCristofaro said.

His house is under contract again to a backup buyer, but because of new rules regulating appraisals, and a more conservative lending environment in general, DeCristofaro is worried about the new sale closing as well.

“It’s shocking. If we just pulled a buyer out of thin air, it would be a different story, but we had multiple offers coming in. It seems strange the lenders wouldn’t support that,” said DeCristofaro, an interior designer who is an investor in the home, which has two other owners.

Real estate broker Robert Searcy has seen a number of sales fall through because of low appraisals.

And that has the potential to hurt property values, too, he said.

“The biggest challenge isn’t the economy, or buyers who can’t qualify for loans. It’s appraisers coming in with ridiculously low appraisals,” said Searcy, who is listing DeCristofaro’s house.

Part of what’s at issue is a new rule that went into effect May 1 prohibiting loan officers, mortgage brokers and real estate agents from selecting appraisers.

New rules for lenders

The rule falls under the new Home Valuation Code of Conduct, the result of an agreement between Freddie Mac, Fannie Mae, the Federal Housing Finance Agency and the New York state attorney general to enhance the independence and accuracy of the appraisal process. It applies to lenders that sell single-family mortgage loans to the government-sponsored enterprises.

The rule was meant to prevent inflated appraisals like those that proliferated during the housing boom.

Houston appraiser Chris Catechis said there were a couple of times in recent years when he felt pressure from mortgage brokers to “hit a value” on a property. If it didn’t, they threatened to take their business elsewhere, which is what he said he advised them to do.
While the appraiser, a partner in Catechis, Campbell & Associates, understands why the new rules were implemented, it has cost him business.

Lenders are now using more appraisal management companies when they select appraisers. These companies often charge a fee to the lender and pay an outside appraiser like Catechis a portion of that fee.

Unfamiliar with the area

One of the unintended consequences of this system, however, is the chance that a management company will hire an appraiser who isn’t familiar with the neighborhood where the house is being evaluated, said Catechis.

“When you have appraisers coming from different parts of town and not knowing areas, they aren’t doing justice to the people that are trying to refinance or sell,” Catechis said. “It really skews the whole appraisal process.”

The appraisal business, in general, has become more difficult in today’s residential real estate market because there are fewer sales — many of which are foreclosures.

Some OK with caution

Catechis said he’s now often required to get two comparable sales that took place within the past 90 days. If there are none, he’ll have to look at similar subdivisions nearby.
“There’s a lot more detail involved in an appraisal for a lesser price,” he said.

Not everyone is as concerned about appraisers taking a more cautious tack.

David Zugheri, of Envoy Mortgage in Houston, said he hasn’t seen a high percentage of homes for sale not appraising.

While the industry is more conservative, “if the value is less than the sales price there’s a strong case that the value really is less than the sales price,” he said.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Phil Hobson, Prudential Texas Properties

www.hgroupdallas.com

Top 3 Real Estate Mortgage Scams: What You Need to Know

Phil Hobson — Fri, 12 Feb 2010 16:12:00 GMT

Top 3 Real Estate Mortgage Scams: What You Need to Know

Print Article

RISMEDIA, November 2, 2009—Being a homeowner is one of the biggest dreams for the American people. Due to record numbers of homeownership and cheap mortgage rates, individuals who did not own a home previously are now looking for mortgages for financing their ambitions. On certain occasions, the dream of homeownership is associated with a cost that exceeds the mortgage.

For finding out how much your mortgage is going to cost you, a loan mortgage calculator often works as a user-friendly tool. Nevertheless, this tool can’t save you all the time. Similar to other forms of investment, real estate mortgage loans are also subject to scams. Mortgage frauds and scams can make you lose thousands of dollars on interest as a minimum because of excessive fees and other hidden costs. The worst that can happen is that you can lose your home to foreclosure.

According to industry professionals, there are three principal or familiar types of real estate fraud:

1. Identity theft via mortgage request
2. Bait and switch
3. Loan flipping

For preventing scams, it has been witnessed that offense is the best defense. Understand the truth and don’t hesitate to make queries.

Bait and switch is a fraudulent sales technique where a loan product is publicized at a lucrative rate (bait). However, the product or rate is subsequently changed for the gain of the lender (switch). This is an utterly illegitimate and deceitful practice. For instance, one interest rate is assured at the time of selling a loan, but a bigger rate is provided at the time of closing.

When you’re obtaining a pre-approval or mortgage quote, you believe that your question with the lender is secret, right? You’re wrong. On many occasions, important financial details about you and your mortgage requirements are hacked by vying lenders. This can happen within 24 hours of your credit bureau inquiry. Your loan officer is even unaware of this. Many firms provide countrywide accessibility to your financial details to the lenders and everybody in your city who requested for a mortgage within the last 24 hours. Any other lender can talk to these individuals the following day and give them a pre-approval for an improved mortgage loan.

One more dilemma is mortgage solicitation through telephone, the Internet or door to door. These scams involve filling in an application through fax, the Internet or over the telephone and often the rates are phony. However, it is not the largest issue to be bothered about–it is nothing but identity theft. Even though the rates are legitimate, the company would get all your important details such as your social security number that can result in mortgage scam or identity theft.

Another type of mortgage scam that is prevalent in the real estate industry is loan flipping. Loan flipping denotes frequent refinancing of a mortgage within a small time frame with very small gains to the borrower. It takes place when a borrower can’t keep up with the planned payments or constantly combines other unsecured loans into a new secured loan at the request of a lender. Lenders flipping loans ask for too much origination fee with every consecutive refinancing. They might ask for these fees on the basis of the whole loan amount, not only on the increased amount summed up with the loan principal through refinancing. In addition, every refinancing might attract prepayment penalties that can be funded as a portion of the overall loan amount, accumulating the debt of the borrower.

If you’re buying a home, looking for a home equity loan or considering a mortgage refinance, it is better to work with a trustworthy lender. You must shop around and do some homework to get the best offers. Try to stay away from furnishing any details until you’re confident that the company or individual you’re talking to is right for you.

For more information, visit www.mortgagefit.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Phil Hobson, Prudential Texas Properties

www.hgroupdallas.com

First-Time Homebuyers Have Unique Advantage in Mortgage Market

Phil Hobson — Fri, 12 Feb 2010 16:12:00 GMT

First-Time Homebuyers Have Unique Advantage in Mortgage Market

By George W. Mantor Print Article

RISMEDIA, July 28, 2009-(MCT)-First-time homebuyers and those thinking about refinancing are in a great place.

Mortgage rates just fell for the third straight week, according to mortgage finance firm Freddie Mac.

“The credit markets are still tight, but they have loosened up significantly from 90 days ago,” said Scott Norman, vice president of the Texas Mortgage Bankers Association.

So is this a good time to enter a mortgage transaction? It might be, if you can qualify. “The two biggest issues are going to be credit and down payment,” Norman said. “Those are really going to trigger your ability to get a mortgage in a decent amount of time.”

Here’s what you’re up against in specific mortgage situations and what you can do to increase your chances of getting a deal done.

If you’re buying a home
Get ready for paperwork. Have your bank statements, W-2 wage and tax statement and pay stubs organized.

“Overdocumentation is the name of the game right now,” said Linda Davidson, senior loan officer at Service First Mortgage in Garland, Texas.

Having all the documents upfront will speed the application process.

Check your credit score. The most widely used score is the FICO, which ranges from 300 to 850. Your score, based on information in your credit report, helps lenders predict how likely you are to make your payments on time. The higher the number, the better the chance you’ll be approved for a loan at a low interest rate. “Clean up your credit score,” Norman said. Catch up on any late payments and pay off or pay down your debt.

First-time buyers have a sweetener in the form of an $8,000 credit on federal income taxes for homes purchased before Dec. 1.

It’s critical that you have a down payment because lenders want to see that you have skin in the game. Mortgages insured by the Federal Housing Administration require a 3.5% down payment, which can come from a family member, employer or charitable organization as a gift. For a non-FHA-insured loan, lenders are requiring a 10% down payment, said real estate agent Brenda Rogers of Coldwell Banker Apex, Realtors in Plano, Texas.

If you’re refinancing
“Have plenty of equity,” Rogers said. Equity represents the ownership value you’ve accumulated over time by making payments, and lenders want you to have a financial stake in the refinancing. “The lender doesn’t want to lend 100 percent of the value of the property,” said Norman, of the Texas Mortgage Bankers Association.

Another reason to build equity is that you don’t want to owe more on your home than it’s worth, a situation some homeowners face today.

Also, consider how long you plan to remain in your home, because you need to stay long enough to recoup closing costs associated with refinancing. Those costs typically will total $3,000 to $5,000, said Davidson, of Service First Mortgage. “If you’re going to move out of your home in five years or less, then typically it’s not going to be worth your doing,” she said. “If you plan on staying longer than that, then we need to look at the costs vs. the monthly savings to see how long it will take to recoup that cost.”

Sometimes things outside your control can affect your attempt to refinance.

Rachel Kelley of Plano said she’s been trying to refinance with Bank of America, which last year acquired her original lender, Countrywide Financial Corp. Kelley, a medical writer, ran into financial trouble after her work was cut to part time. “I cannot afford my house payment anymore,” she said. She said her repeated attempts to get more information from Bank of America on how to refinance her home through the Obama administration’s Making Home Affordable refinancing program have been unsuccessful. “I spoke to several people, trying to get information about the program and what I needed to do to refinance,” Kelley said. “It is very likely I will be behind on my payments in the near future due to their inability to get me the proper information on time in order to refinance.”

Loan modifications
A loan modification is when a lender changes the terms of your loan so you can afford your payments.

That can be done by lengthening the term of your loan, lowering your interest rate or allowing you to skip payments and adding those to the end of your loan.

The Obama administration is prodding mortgage-servicing companies to bolster their efforts to modify troubled loans. The servicer is the company that collects and processes your mortgage payment. It may or may not be your original lender.

If you’re having trouble making your payment, contact your servicer immediately and ask about a loan modification.

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Phil Hobson, Prudential Texas Properties