CarolinaMortgageConnection.com

Archive for April, 2008

Mortgage Marketplace at Zillow

Earlier I voice my opinion as to Zillow’s new Mortgage Marketplace expressing serious concern for how it may make borrowers feel as if they are being lied to. My concern comes from years of experience with what we call the “rate shopper.”

The “rate shopper” is a borrower that grabs the yellow pages and call 10 lenders asking them “What’s your best rate?” The lender then has to hope that they are picking the right product, rate, terms, fees, etc to grab that possible borrower. Afterwards the borrower, having given very little information, tells them thank you and I will call you back.

I have found that in dealing with the “rate shopper” that when they get to lender #7 on their list, they are confused and frustrated. They get rates ranging all over the place, different terms thrown at them and all kinds of sales pitches. This tends to leave them feeling a bit beat up, when in fact they were the ones beating up the lenders.

I am not against comparing rates. I think it is a healty and smart thing to do, especially if you are unsure about your lender. However, in today’s market shopping can cost you more than it can save as rates jump around quite frequently throughout the day… yes, 5-6 times a day!

With all this in mind, I may not have given Zillow a fair shake and have decided to give it a try. I have signed up with them and once they confirm I am real I will begin getting these “leads.” I will try my best to give realistic “quotes” to the anonymous borrowers and hope that I don’t get lost in the shuffle of all the bait and switch games that others can play. We will see what happens.

I still believe that the best way to approach your mortgage is to find a lender you feel you can trust. If they can answer your questions and help you understand what is going on with the process, chances are they will be good to you when it comes time for pricing. If you are not sure, call someone else to compare. But if the lender has been doing their job and answering your questions, be sure to contact them before jumping ship if someone else offers the “too good to pass up” deal. Give them the shot to see if they can make that work first… could be a program they had not considered for you. (We aren’t all perfect!)

I am posting this to make sure I am not compared to a politician, that says one thing and does another. I am going to give Zillow a fair shot and see what becomes of it. Wish me well…

Fixed Rate Mortgages Better Than ARM

Charlotte Home Owners… Do you currently have an Adjustable Rate Mortgage (ARM)?  Today’s fixed rate mortgage loan may be a better option. Refinancing your old adjustable rate mortgage to a low fixed rate Charlotte mortgage could make more sense than you realize!

Yesterday’s ARM mortgage rates were unbeliveably low attarcting many home buyers and home owners decided to go with an adjustable rate mortgage to capitalize on the savings. But now many of those ARMs are getting ready to reset. It’s time to explore options.

Today’s fixed mortgage rates in Charlotte are still near historic lows. As a matter of fact, they are so close to ARM mortgage rates that it just makes more sense to go with a fixed rate. And as Charlotte mortgage rates begin to rise over the coming months, waiting could cost you a lot of money later.

If you live in the Charlotte area and currently have an ARM mortgage, now is the time to check out your options. Call today and find out how much you can save by refinancing your mortgage loan to a low Charlotte fixed rate mortgage.

Federal Government Providing DownPayments?

With the Economic Stimulus Package checks being mailed out, many potential home buyers may be getting the down payment they needed to buy a home! And if you ask me, you can’t find a better use for the money!

The checks being sent out can be quite large. Most people will get $600, with married couples getting $1,200. Each dependent child will get $300 more. So the average family of 4 can stand to get a check for $1,800! A family of 5 will see a check of $2,100!

This can go a long way towards buying a home. On a $100,000 started home, a 3% down payment is only $3,000. With $1,800 coming from the government, you only need $1,200 in cash to buy your home! And with the check coming from the US Dept of Treasury, you won’t have to worry about “seasoning” the funds. (Seasoned funds are funds that you have had for at least 60 days.)

So when you are thinking about what to do with that big check from Uncle Sam, seriously consider putting it somewhere that will make a real difference in your family’s life… A home of your own.

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USDA Mortgages Can Include Repairs

If you are considering buying a home using the USDA program, there is a great feature that may help you. USDA mortgage loans for the Charlotte outlying areas will allow you to include additional funds over 100% financing to allow for repairs to a home. This is especially helpful when buying a foreclosed home that needs a little TLC.

This can vary based on the investor that will originate the USDA loan, but for the most part funds for repairs can be added to the loan, to a max of 10% of the loan amount (no more than $10,000). The repairs can not affect livablility or safety of the home.

For example, a home priced at $120,000, the max you could use would be $10,000. That money is placed in escrow with the closing attorney to be paid out once the work is complete.

There are a couple other points to consider.

The repair escrow does also require an additional 50% deposit to cover any potential cost overruns. This can not be added to the loan, but can be contributed by ANY party. In other words, if the repairs will cost $10,000, the lender will hold $10,000 in escrow and also require an additional $5,000 (50% of the $10,000) to be placed in the account as well.) That $5000 can be money you deposit, the seller is willing to deposit, or whomever. If that extra money is not used, the extra is refunded to the contributing party. However, if the actual costs runs under the $10,000 estimate that was escrowed, you as the buyer can not get that extra money back as cash. It should be credited back to the outstanding mortgage balance.

The repairs must be done by a licensed contractor and can not be done by you. The contractor will submit an itemized bid stating what it will costs and when they would have it done. Must be completed within 30 days of closing and may be extended if due to weather.

There is usually a small fee to the lender to administer, and there may be a cost from the closing attorney to manage the escrow.

Bottom line: Getting additional funds to improve the property you are buying using the USDA mortgage loan can be done, but it does require a few hoops to deal with. But with no money down, you can not beat this mortgage loan period!

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“Fire Sale” for Charlotte Firefighters

That’s right! Firefighters in Charlotte can buy a home for HALF OFF! Using the Charlotte Good Neighbor Next Door program for Firefighters, any full time Firefighter (or EMT) can buy a HUD home for 50% off the list price! And with our Firefighter Mortgage Loans, Charlotte Firefighters can save big time!

You risk your life to save and protect our community. While we can’t repay what we really owe you, the Firefighter Half Price Home program can certainly help! As a full time firefighter in Charlotte, you could qualify to purchase a HUD home for only half price and get 100% mortgage financing with only $100 down!

These special program homes are HUD foreclosed properties located within HUD’s designated “revitalization” areas. As you can see by the map (red areas) this is just about anywhere in Charlotte! Every week a new list of these homes become available for only 5 days! Using a HUD approved Realtor, you can make an offer on these homes and purchase them for only 50% of the home’s list price.

Here’s an example. A HUD home is listed at $170,000 and if offered for only 5 days through this program. A qualified Charlotte Firefighter can buy this home for only $85,000! While you must live in the home for at least 36 months, the equity you get when you eventually sell is yours to keep! That’s a nice payday!

So how do you get started?

First, you need to get pre-approved for a Charlotte mortgage loan. Our special Charlotte Firefighter Mortgage Loans will put you in position to make an offer on these special homes when they become available. Since there is only 5 days to make your offer, having the mortgage pre-approval out of the way puts you way ahead of the pack! Next, you will need a qualified HUD approved real estate agent to make the offer for you. If needed, we can help you find a HUD approved Realtor in Charlotte. Once your offer is accepted, you are on the fast track to closing. Then simply move in and enjoy your great home!

Get started now and take advantage of this awesome program for Charlotte Firefighters.

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Home Buying Program for Charlotte Law Enforcement

Police officers, Sheriff Officers and any Law Enforcement Officer in Charlotte have the unique opportunity to purchase a home for half price! That’s right… Charlotte law enforcement officers can buy a HUD home for 50% off the homes sale price!

HUD offer the Good Neighbor Next Door program to Charlotte’s law enforcement officers to help build and secure the areas they serve and protect. For example, a CharMeck Police Officer could purchase a HUD home worth $140,000 for only $70,000! And using our special mortgage programs for Charlotte police officers, you can get 100% financing with only $100 down!

These special homes are HUD homes listed in Charlotte’s “revitalization” areas (which surprsingly covers most of Charlotte) and are offered through this program for only 5 days before being opened to the general public! To jump on this special home buying program for law enforcement in Charlotte, you must use a qualified Charlotte Realtor. (we can offer a referral if you need it!)

The map below shows the areas these homes are found in. Notice the red colored areas… Most of Charlotte falls into this!

To qualify, you must be employed full time as a law enforcement officer sworn to protect and have the ability to make arrests for violations of laws. Additionally, you must be willing to live in the home for 3 years to get the 50% dicsount on the home’s price. (there are a few other details… ask for more info)

So how do you get started?

First, you will want to get pre-approved for your Charlotte Good Neighbor Next Door mortgage loan through Residential Mortgage, a HUD approved mortgage lender. Once approved you will be in the driver’s seat to make an offer on the perfect home when it becomes available. Only HUD approved Realtors can make the offer for you, so we will get you connected with the right real estate agent in Charlotte. Once you have found the right home and have an approved offer, we can close your mortgage loan in just a few weeks!

This is a unique program that offers Charlotte’s Finest the opportunity to own a part of the city they serve, and rewards them for it! Just imagine doubling your money on a home in such a short time!

So what are you waiting for? Get approved now and let’s get you connected with a HUD approved Realtor to find your Half Priced Home in Charlotte!

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Charlotte Teachers Buy Homes at 50% Off!

Teachers looking to buy a home in Charlotte have a great opportunity before them! Using the Good Neighbor Next Door program, and working with a qualified real estate agent (ask for a referral) teachers have the opportunity to pick up select HUD homes for half of the listing price!

For example, HUD lists a home for $150,000. Using this program, a Charlotte-Mecklenburg teacher can purchase that home for $75,000. After living in the home for 36 months as a primary residence, you can sell the home and make an instant $75,000! Add to that the appreciation value and you can make out big!

So what’s the catch?

There are a few things you need to be aware of. First, this must be a HUD home in an area designated as a “revitalization area.” Don’t worry… most of Charlotte and Mecklenburg county is designated as a “revitalization area!”  (see red colored area of map)  Second, it has to be a home that HUD is offering as a GNND home. These homes are posted once a week and only open for this program for 5 days! Third, you must occupy the home as a primary residence and actually live there! Fourth, you must live there for 3 years or pay back the other 50% you were discounted. And finally, you must use a qualified Realtor in Charlotte to make the offer.

Imagine buying a home for half price, needing only $100 down and getting great low mortgage rates in Charlotte! This is a great program for Charlotte school teachers to take full advantage of!

So how do you start?

First, you need to get pre-approved for your Charlotte Good Neighbor Next Door mortgage. Since the window of opportunity to snag these home is limited to 5 days, you will want to make sure you can qualify to buy one of these homes. Once you are qualified, we can connect you with a HUD approved Realtor to help you find the perfect home for half price! From there, the Realtor and I will work together to get your home purchase and mortgage loan closed quickly. Then move on in!

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Good News for Financial World

With all the negative press and cries of the sky falling, many times people miss the hidden gems of good news. National City just got a $7 Billion cash infusion. Even though National City has taken major hits and its stock has dropped dramatically, this is GREAT NEWS!

If the sky was falling, who in the world would be willing to offer $7 Billion to a company with major losses? Folks, you gotta see this… now is the best time to make investments! While companies are dealing with the losses and issues, smart investors are jumping in and taking BIG risks to help move things along. This is 7 billion reasons to believe that things are not as bad as everyone seems to say it is!

On a smaller scale, now is the best time to make an investment for yourself. If you have been considering purchasing a home, now is the best time in recent history to do so! Mortgage rates in Charlotte are still very low and homes for sale in Charlotte still offer great selection.

Typically in a buyer’s market, rates are higher. Yet today, Charlotte mortgage rates are super cheap and there are still tons of homes to buy! So if you are thinking of buying a home in Charlotte or the surrounding area, now is the time to move!

Good Monday Morning Charlotte!

This morning the news is filled with gloom and doom, especially in regards to the economy. Recently Bank of America reported that their earnings were off. They only made over $1 billion in the first quarter! Yeah, they actually made $1 billion and everyone is crying!

Folks, please pay close attention to the media. A major bank makes money and yet the sky is falling! Sure, they projected more and they made less than last year… but with the economy slowed isn’t this to be expected? Look at all the other MAJOR banks that took losses and ultimately closed doors! Isn’t BOA’s $1 billion profit a GOOD THING?

Forget the bad news that the media is pushing.  Take a positive step in your life and don’t buy in to all the negative spin going on. From the economy to politics, there is plenty of negative to grab on to and breathe in. But I challenge you to look for the positive areas in life.. those things that happen everyday and don’t get acknowledged. Its obvious they don’t sell the news and that is a shame.

The Charlotte NC region is strong, with a thriving economy and solid real estate market. If we continue to focus on the positive areas maybe Charlotte can help push the rest of the country in the right direction.

Positive! Let’s focus on the good stuff and leave the garbage at the dump!

Have a wonderful week.

Broken ARM? The Doctor is In!

If you are currently suffering from a broken ARM (adjustable rate mortgage), or if your ARM is threatening to break, you need to call the ARM Doctor now!

As your mortgage’s primary care specialist, I will help you diagnose the problems that your mortgage ARM is causing, or may cause in the near future. I can offer suggestions on how to correct the problem, including refinancing your adjustable rate mortgage into a low fixed rate mortgage.

Homeowners all over North and South Carolina, including Charlotte, Matthew, Concord, Gastonia, Huntersville, Rock Hill and beyond are saving money now with great low mortgage rates and fixed mortgage terms.

With amazing products like the FHA refinance mortgage that allows up to 95% cash out, you can save hundreds of dollars each month! Lower your payments, pay off debt (debt consolidation) and secure your best mortgage rate today!

Call me now and let me examine your mortgage situation. Even if you are not strapped with a broken ARM, a free mortgage consultation can let you know if your mortgage is in perfect health, or if you can get a better mortgage.

In Charlotte, call 877-411-9327. As a matter of fact, you can call that same number from anywhere in the Carolinas! Or apply online to refinance your mortgage for a better mortgage.