New Government regulations alter closing schedules

Starting January 1, 2010, the Real estate and Mortgage industry is going to find themselves struggling to digest a new good faith estimate and HUD 1 (closing statement) system. There are three pieces of legislation involved.

1. HOEPA --Home Ownership and Equity Protection Act.

2. HERA -Housing and Economic Recovery Act.

3. SAFE--Secure and Fair Enforcement for Mortgage Licensing ActLater I will address in detail some of changes. In the meantime, here are some of the bullet points.

We as mortgage lenders cannot collect any fees other than credit report fees until the borrower has received their initial disclosures. ( We don't collect the credit report fee up front and we will of course do our best to keep this from impeding loan approval)

No borrower may close until seven business days have passed from receipt of those disclosures.

The homebuyer must receive a copy of the appraisal at least three business days prior to closing. (this can be waived)

The homebuyer must receive a revised Truth in Lending disclosure at least three business days before closing.

An increase of more than .125% in the APR can delay the closing. Unlocked rate, change in loan amount, product change, rate re-lock, change in closing date or changes to fees, inclusive of settlement agent fees are items effecting the APR.

Consumers will have easy access to loan originator's history .

This is not all. So you can see that with all these new things to worry about, it is more important than ever to go to reputable lenders like George's team at MIG so that closings are not delayed.

Planning for 2010

A number of years ago I created and taught a course called "Taking Control of Your Time and Your Life." It was a time management/life management/financial planning/motivational program. I taught one- and two- day versions of the program and often did shorter keynote type addresses to different groups on the content from the course.

I came across this piece recently and it is still great advice, no matter what market conditions exist. Annual business planning should be done in the context of your life plan.

Now is the time to begin the thought process which will lead you through a successful 2010, in both your business and your personal life. It is important to realize that any year is just part of a much bigger picture. Do not short change yourself when it comes to the planning process.

The sooner you begin to think about the process the better, and the less time it will actually take to commit your plans to writing and move into implementation. Give yourself the time you need to plan. Make it a priority. Planning is essential to success. This has been said many ways and two of my favorites are:

"If you don't know where you are going, any road will take you there."

"Not having a plan is planning to fail."

The week between Christmas and New Years Day works well as a planning period for me. Things are usually slow that week and I have time to reflect on the past year while I plan for the New Year.

Planning will give you your best shot at success. Success means different things to different people, so begin your planning process by broadly defining what success means to you and giving thought to your vision of a successful 2010. To some, success will be more income; to others it will be more time spent with family and friends; to others a combination of the two...and to others...well, who knows.

Defining what success is for you and prioritizing your goals requires an examination of your values. How important are the following to you?

· Family
· Charity
· Helping others (Money)
· Helping Others (Deeds)
· Spirituality/Religion
· Wealth and Material Possessions
· Education· Self-improvement
· Security
· Happiness

Planning for the future must be done in the context of the future. You can't effectively plan for the future from the present.

You must first step out "into the future" by developing your vision of the future, and then, "from the future," you will be able to plan your way to THAT future, from the present.

Make sense? Just as we all have 20/20 hindsight and can see the important steps that led to success from our past, those important steps to insure success in the present can be more clearly viewed "from the future."

When considering what you will do each day...as you prioritize your daily tasks, keep in mind that time is a precious commodity, and none of us has enough of it. What you do today must help you achieve what you want to have achieved by the end of the week...and the end of the month...and the end of the year...and each year's accomplishments should contribute to where you want to be in five years, ten years, and ultimately your lifetime.

Your daily decisions should be made with the bigger picture in mind. You need to determine the "long range" as it will have an impact on the choices you make today.

One way we measure our success is by the accomplishment of our goals. Goals give us direction. It is important to set goals. A mistake made by many is setting goals too low. Human beings are capable of great accomplishment; don't sell yourself short. As Bing Crosby sang in the musical A Connecticut Yankee in King Arthur's Court:

"There's nothing to be ashamed of, if you stub your toe on the moon.

" To be effective, goals must be:

1. Written - This will begin the process of making the goal "real." Place your goals in front of you daily.

2. Specific - Specificity will allow you to focus your intent...a key ingredient to success.

3. Measurable - This will help keep the goal "real."

4. Valued - Based on what is important to you, this will allow for the prioritization of your goals.

5. Shared - This will help create the commitment needed to accomplish even the loftiest goal.

Commitment is the secret ingredient. As human beings we are capable of accomplishing whatever we determine is important enough for us to accomplish. Choose your goals and commit to them wisely...because once you truly commit, the accomplishment will follow.

As for your real estate business:

Begin with the dollar amount you wish to earn in 2010. Calculate your average dollar earned per transaction in 2009. Calculate the number of transaction sides required to hit your dollar earned goal for 2010. Based on past experience, determine the number of contacts and calls required to hit your number. Make sure you make that number of contacts, at a minimum, each day.

Think about your goal each day.

It's a grind, but the road to success is usually a grind. Doing what you like to do makes it easier, but there is still a lot of "grunt work" along the way.

By Saul Klein

If you know someone in the market for a new home at the great terms available today please give them my number 777-home (4663) or e-mail george.margrave@migonline.com and we will take care of it.

Thanksgiving thoughts

As I write this I think back to Thanksgiving 2009. I along with many Americans and I suppose people all around the civilized world was afraid of the future. It was a time when it looked like a good possibility that the financial world would crumble. The markets were in free fall. Almost everyone who had saving and retirement plans had seen them tumble to only a fraction of what they had been previously. My personal income took a major hit. It seems that most of these problems had started with greed.

Now as I look back I can see that God took care of us. I really don't think it had much if anything to do with our Government. Fortunately most people have seen their investments grow back to more reasonable numbers although they are still probably worth less than they were. For many including myself, the dose of reality was very good. I am very thankful that my business has recovered and in fact it has been a very good year thanks to all my good friends and clients. Now there are many people still looking for work ( my brother being one of them). The road back for the unemployed is the most difficult. I think we can all help by watching out for job opportunities for our friends that need one. By the way Ande is looking for a sales position.

And we can help by spending a little money in the economy to grease the economic wheels. But I think we will all remain a little more frugal and are more likely to live within our means.

There are probably two reason my teams business has done well. The first is that we were well positioned to help First Time Buyers. And with the tax credit extension ( In fact move up buyers can benefit now) that should continue for a while. The other reason is the very low interest rates. If you know anyone who might benefit, please ask them to contact me. A consultation is free.

Thank You to all of my good customers and friends Happy Thanksgiving!

FHA Streamlines

There has been a lot of issues with appraisals these days. It is keeping many people from refinancing to lower rates. That is because you need a little equity based on a new appraisal to finance closing cost. Of course if someone wishes, they can pay them out of pocket. But that doesn't happen often. The reason I bring this up is that if a person has an FHA loan with a rate of 6.5% or higher, we (MIG) can reduce their rate to 5.5% and pay most of the cost for them. And we can do this without an appraisal. So if you know someone like this, it would help them and us if your referred them to me at 777-HOME (4663).

It's Official: More Homebuyers Qualify for Tax Credit

On November 6, 2009, President Obama signed an expanded version of the $8,000 first-time home buyer tax credit that was set to expire on November 30, 2009. The new version of the tax credit goes into effect on November 7, 2009 and has the potential to stimulate the housing market even more than the old version. More people will qualify under the new rules. Although the tax credit remains at $8,000 for home buyers who have not owned a primary residence in the last 3 years, it has been expanded to include a $6,500 tax credit for home buyers who have lived in their current primary residence for at least 5 consecutive years out of the past 8 years. Under the old rules, move-up homebuyers did not qualify. Consider these examples:

Example 1:

Jane purchased a home in 2002, lived there for 5 years as her primary home, moved out in 2007, and turned that home into a rental property. If Jane decides to buy a new primary residence today, she would qualify for the $6,500 tax credit because she lived in the same residence as her primary for at least 5 consecutive years out of the past 8.

Example 2:

Harry purchased a home in 2004, and lived there for the past 5 years as his primary home. If Harry decides to buy a new primary residence today, he would qualify for the $6,500 tax credit because he lived in the same residence as his primary home for at least 5 consecutive years out of the past 8.

Example 3:

Nicole purchased a home in 2006, and lived there for the past 3 years as her primary home. If Nicole decides to buy a new primary residence today, she would not qualify for the $6,500 tax credit because she did not live in the same residence as her primary home for at least 5 consecutive years out of the past 8.Example 4:Bob, an existing homeowner, signed a contract on October 22, 2009, to purchase a new home. He has lived in his current home for more than 5 consecutive years and is within the new income limits. He will go to settlement on November 22, 2009. Bob will qualify for the new $6,500 tax credit as there is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

The tax credit applies to homes that are purchased for less than $800,000 and before May 1, 2010. If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010. This is similar to a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit.

The income limitation for single tax payers went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000. This means that more people will qualify for the credit -- especially in parts of the country with higher costs of living. This should help stimulate parts of the housing market that may not have been impacted by the old versions of the credit. Some of these are feeder markets for the Upper Cumberlands. As these sellers relocate, higher sales in those markets could translate into more sales here.

There are many creative ways of structuring your home purchase transaction. The licensed and certified mortgage professionals at Mortgage Investors Group can help maximize the benefits of the credit. Here are a few examples:

* The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence. You could live in one unit and rent out the others.

* If 2 unmarried individuals buy a home, and only one of the individuals qualifies for the credit based on their income, or past home ownership status, the individual who qualifies for the credit can claim the full credit. (Note: In the case of married couples, both spouses must qualify for the credit.)

* The credit applies even if you have co-signers on your mortgage loan.Today's good news regarding the expanded home buyer tax credit will have a positive impact on housing nationally. It is vitally important to share this information with our community so that we can benefit here at home as well.

From John Brewington

First Time Home Buyer Tax Credit

The time is close. Unless the law is extended, the pressure is mounting. We would have no problem getting an FHA, VA or Conventional loan approved and closed before the deadline of Nov 30. But if a first time buyer needs the down payment assistance of THDA, we have less than 2 weeks left to get a loan submitted to THDA before the Nov 16 deadline( they have said they will guarantee underwriting will happen in time to close if they receive it by then. ) so it is not too late. Have your friends or relatives who are interested. Call me at 777-HOME (4663) for priority service.

First Time Home Buyer Tax Credit

I know everyone is tired of hearing about this, but the fact of this is if you or someone you know is eligible and even considering buying a new home they need to call me at 777-HOME (4663) to learn the details. Don't depend on the government extending it. It might not happen. And it is just too good to pass up. Loan eligibly just might be easier than you think in spite of all the stories you hear.

The bottom line is it is a THREE Way Winner.

1. $8000 cash to the buyer from the US Government.

2. The real estate market is featuring bargain basement prices.

3. The interest rates are great. ( and you do not have to have a down payment to pull this off).

If you know someone in the market for a new home at the great terms available today please give them my number 777-home (4663) or e-mail george.margrave@migonline.com and we will take care of it.

I went to a function last week where the speaker Theresa Wilson from the Williamson County Association of REALTORS was the speaker. Here is something she said which got my attention. The average Realtor in our area has about six years experience. So until recently the market share for FHA loans in this most recent decade was very small. So most of our Realtors are not familiar with FHA financing. That is where we come in. My team has been financing homes in a big way with FHA since 1985. It is by far the best way for a buyer with minimum funds for closing to buy that new home. (also for refinances where small amounts of equity are problematic) And yours truly is the one to contact. We will make it so easy, the Realtor won't even know it is different from what they are used to. My number is 777- HOME (4663) and e-mail is george.margrave@migonline.com.

Tennessee's a Desirable Place to Live!

A recently released Harris Interactive poll asked Americans where they would choose to live if they did not live in the state where they are now. 2,498 U.S. adults were surveyed online between August 10 and 18, 2009, and Tennessee made the top 10!

1. California

2. Florida

3. Hawaii

4. Texas

5. Colorado

6. Arizona

7. North Carolina

8. Washington state

9. TENNESSEE

10. Oregon

Of course, we already knew that it's great to be in Tennessee! So let's see. Interest rates are near record lows and prices for homes are rolled back to levels we saw 4 years ago.

Why haven't you called me yet at 777- HOME (4663) .

If you know someone in the market for a new home at the great terms available today please give them my number 777-home (4663) or e-mail george.margrave@migonline.com and we will take care of it.

Spread the Link & Spread the Word!

http://www.youtube.com/watch? v=PNzq345w6MY

Spread the link! Spread the word!

Time is running out on the First Time Homebuyer Tax Credit! Unless this program is extended by Congress -- and we hope it IS -- a homebuyer is eligible for the tax credit ONLY if the home is "purchased" before December 1, 2009.

That means that buyers have to find a house, complete a contract, satisfy any contingencies, secure financing and go to closing by November 30. Accomplishing those tasks by November 30 will become more difficult with every passing day. In today's market, it generally takes between 45 and 60 days to go from contract to closing.

This is from the Tennessee Association of Realtors and I couldn't say it better myself.

If you know someone in the market for a new home at the great terms available today please give them my number 777-home (4663) or e-mail george.margrave@migonline.com and we will take care of it.

OUR PLEDGE

George and his team at MIG has been known as a "production oriented, customer first, independent mortgage banker." That is rooted in a company history and philosophy of team work and "doing the right thing". A cornerstone of this philosophy has been timely, informed and constructive communication. This is both internally with fellow employees and externally with clients.

We believe now is the time to re-dedicate ourselves to that cornerstone of our business. We must maintain a level of internal communications between production and operations and our clients that is superior. Much of our competition has gone and the bigger companies will probably never serve you like we can. This is our opportunity to shine and we intend to do just that..If someone asks us to contact them we do so and as promptly as possible. If this is the way you would like to do business, my number is 777-HOME (4663).

If you know someone in the market for a new home at the great terms available today please give them my number 777-home (4663) or e-mail george.margrave@migonline.com and we will take care of it.

Need a mortgage? Consider an FHA loan

Government-insured Federal Housing Administration loans now make up about 25% of the mortgage market. Here are five things you need to know;

1. Chances are good that you'll come across one. During the heyday of no-money- down lending, you were unlikely to have a buyer using a government-insured Federal Housing Administration (FHA) loan, which lets borrowers purchase a home with a down payment of as little as 3.5%. Now FHAs are the only game in town for anyone who can't put down the minimum 10% many banks require to get a conventional loan. About a third of buyers have 10% or less saved for a down payment, according to a recent Zillow.com survey. No wonder FHA loans have skyrocketed from 3% to 25% of the market. While you may not need to take out an FHA mortgage to purchase your next home, there's a good chance you'll be selling to someone who does.

2. Borrowers can qualify with any income. Historically FHA loans have gone mostly to low-income borrowers. But, in fact, there's no cap on what someone can earn. "The overriding factor that we look at is the ability to make payments," says Lemar Wooley of the Department of Housing and Urban Development. Borrowing limits may be higher than you think too: Though the max is $271,050 in areas where real estate is cheap, buyers can take up to $729,750 in high-priced markets like California or New York.

3. Expect a tough appraisal. The home will need a clean bill of health from a government-approved appraiser, and the seller must fix any issues before a buyer can close on the loan. A few years ago the FHA eased up on repair requirements for minor problems like missing handrails or cracked windows. But it still won't budge on leaky roofs or mold damage. If you're selling, know that an FHA appraisal stays on record for six months, even if the deal goes kaput or the buyer switches lenders. "Get one low FHA appraisal and you're stuck with it," says Dallas realtor Bruce Lynn.

4. These loans are pricier than they seem. Nominal rates on FHA mortgages are comparable to those on conventional loans. But hefty fees on the FHA variety up the cost. There's a 1.75% upfront charge as well as a 0.5% annual insurance premium for five years and until the principal balance hits 78% of the sales price or the home's appraised value. If you're buying, ask if the seller will pick up some of the insurance costs as part of the deal, says Manchester, N.H., realtor Scott Godzyk. According to FHA rules, sellers can pay closing costs up to 6% of the home price.

5. They've gotten easier to obtain. FHAs once had a well-deserved rep for onerous paperwork and a longer, more difficult closing than conventional loans. But thanks to a new automatic underwriting system and the looser repair requirements, FHA mortgages take only a few days longer than conventional loans to close, says Bill Banfield, a vice president at Quicken Loans. FHA loans still require written documentation of income, including pay stubs and tax returns. But stricter underwriting across the board means that you will probably need such paperwork no matter what type of loan you get.

By Beth Braverman, Money Magazine staff reporter

My take on this is that really if you don't have 20% for a down payment, FHA is usually by far the best for the borrower. Number 4 item makes it seem too expensive, but the fact of the matter is that if you don''t have the before mentioned 20%, you will most likely have mortgage insurance and FHA is better than most.As for the appraisal issues mentioned, any appraisal is now going to be closely scrutinized. We have a little more control over FHA appraisals until Jan 1, 20010, and then who knows?

Looking Back

This September is the one year anniversary of when many of the financial institutions started going down and the government stepped in to manage the process. I certainly never dreamed that we would see Fannie Mae, Freddie Mac, and a host of other large financial institutions go away almost overnight. We then saw the economy "freeze up" and everyone's business reflected that consumer fear. Then beginning in November and December, we saw business take off and the 2009 refinance tsunami came ashore. We went from a fear of "too little" business in October to "too much" business in May and now the tide has returned to a more normal level. We have also had to communicate and absorb an overwhelming number of guideline changes and new refulations put in place "to fix" the situation. The immediate impact of which further increased the work load and uncertainty as to "what is an approvable and saleable loan, today?". We have been in a reactive mode for the last year and while there are still changes to come, I believe it is time to look forward. We believe the healing process has began and we are happy to have survived so that we may continue to serve you.

Slightly altered comments from Steve Smith, MIG.

Reducing Junk Mail

If you are tired of getting "pre-qualified" insurance and credit card offers in the mail, there IS a way to reduce the flow! Go to: https://www.optoutprescreen.com This website works like the National Do Not Call Registry for your credit report! By opting out, you are telling the Credit Bureaus that you do not wish them to sell your credit information for credit and insurance "Pre-qualified" offers. The home page explains the pros and cons to Opting Out.

The grapevine report concerning the possibility of the tax credit being extended...

Our company deals with consultants in Washington in an effort to stay on top of current events. In regards to the possibility of extension of the tax credit, we are told the following. Here are their thoughts:---The trade groups, builders, realtors, are pushing for an extension, dollar increase and opening to all buyers. ---They believe that the economic data coming out between now and November deadline will be key and we will not know until October. Since there is evidence that housing is rebounding, there will be political pressure not to spend any more money. At the same time the current tax credit has played a role in the recovery. There is also pressure not to have the recovery stall by taking away the current tax credit. Bernake's comments will be key as to how the recovery is going. ---Here is how they would estimate, today, the likely outcome; ***1 in 3 chance to continue the tax credit "as is". ***1 in 5 chance to expand the credit to $15,000.***1 in 20 chance to open to a larger group of people, i.e. all buyers of new homes, etc. So with this in mind I would recommend that all interested parties do whatever possible to facilitate a closing by November 30.

HVCC (The Home Valuation Code of Conduct)

I have been trying to hold my tongue until this new way of doing business with conventional loan appraisers was in place for a bit. I had hoped that somehow the powers that be would work out the kinks. I don't think it is going to happen. All Freddie Mac and Fannie Mac loans are affected which is basically most all of the conventional loan market. This affect's MIG, all banks, brokers and mortgage bankers. So you can't avoid it if you do a conventional loan.In case you don't know about HVCC you are probably fortunate, since it hasn't bit you yet. Here are the details. Neither the loan officer (that is me), my processor, anyone in my office the Realtor or the builder is allowed to know who will do the appraisal, where they work, nor can we ask for any particular value. Supposedly the appraiser is to work only in areas he knows, but from what I have seen that is questionable. We can have no contact whatsoever. The Realtor and home owner can speak to the appraiser, but that is about it. In many cases an appraisal management company will perform this ordering and monitoring service. Guess what that did to the price of the appraisal? And it also guaranteed a longer turn around time. Fortunately MIG didn't go the route of the appraisal management company. I believe that most of the horror stories originate with them. Once the appraisal has been received by the lender it is sent to the borrower. The loan then cannot close for three business days. I can see no benefit in that. Fortunately we just were given authority to waive this in some cases. To avoid the appraisal management company, our home office has set up a blind draw of appraisers who have done business with MIG over the years.It is just like being in middle school. Someone in class misbehaves and the whole class is punished. So the honest real estate practioners are being punished for the sins of those who violated ethical laws. With all this said , this is all the more reason to direct your transaction to someone who knows the ropes (That is George's Team) so that when and if problems arise, we can do our best to make things work out.

Top 2 Bottom Home Inspections owners Larry and Nancy Rollins take up the cause to help recover their grandson from Autism Spectrum Disorder

"We need your Help!"

At age two "Gunnar Cole" was diagnosed with autism. Autism is a brain development disorder characterized by impaired social skills, communication, and by restricted and repetitive behaviors. While children with autism are remarkably intelligent and capable, they do not learn in the same way that the rest of us do. Traditional childhood training and schooling simply does not work with autistic children. What does work is Applied Behavioral Analysis Therapy (ABA Therapy). ABA Therapy can teach autistic children the skills they need for all aspects of life. Studies show that ABA Therapy works to recover 65% of cases where the child is started by age three and continues at a rate of 30 to 40 hours per week until age five or six. Little Gunnar Cole has been working 30 to 35 hours a week with ABA Therapy since he was two years old. A combination of special ABA therapies at "The Brown Center for Autism" here in Nashville, and private therapists at home have transformed Gunnar from a minimally responsive, non eye contact, two year old who would barely acknowledge anyone's presence to a bright and shiny three year old who loves to play with other children and adults alike. Our family, as well as, "friends of Gunnar", known within the family as "Gunnars Angels" are extremely excited by his progress. He is even starting to talk and is obviously exciting himself by all that language is bringing into his life. His teachers and therapists are telling us that Gunnar is a prime candidate for the 65% group that can be recovered.We can not stop now. To recover little Gunnar we must be prepared to keep this regiment up for three more years. Our problem is that Gunnar Coles schooling, therapies, and medical expenses run $80,000 to $100,000 per year. As a family, we have made it through the first year and are committed to completing this task for Gunnar. We are aware however that we will be coming up short this next school year by about $20,000, even after taking all the normal "in family" financial steps to raise money.Therefore, Nancy and I have decided to expand Top 2 Bottom Home Inspections and we are asking your help in doing so. We are going to raise that $20,000 for Gunnar Cole. Commencing immediately, the proceeds from all our home inspections beyond two per week will go directly towards Gunnars schooling, therapies, and medical expenses. We are asking for your help! Not for a donation of money, but for an opportunity to show you that we can provide a quality home inspection and personal service unmatched anywhere in Tennessee. After all, Gunnar is working almost a 40 hour week at age three, we should be able to do more. The old adage, "It takes an entire village to raise a child", has new meaning for us, and we hope for you as well.We thank all of you who are, will become, or who have been, supporting Gunnar Cole in his fight to beat Autism Spectrum Disorder! Larry and Nancy Rollins, Top 2 Bottom Home Inspections 498-4930. Larry is a good friend and if any of you can help while receiving a great inspection, it would be great.

The First Time Homebuyer Phenomenon

Overall real estate is still down some from last year. But the segment of first time buyers is booming. The tax credit of $8,000 combined with the incentives of THDA (Tennessee Housing Development Agency) which could be as much as another $9,000 in grants. You combine this with interest rates in the 5's and home prices that sound like 2005 prices and it is almost too good to pass up. Now I am hearing Realtors saying they are starting to see the inventory of homes in these price ranges start to be a little wanting. So I recommend that if you know someone that would be interested in this, they need to get with it.

My number is 777-Home (4663) and my e-mail address is george.margrave@migonline.com And the sellers of these homes have to go somewhere. So that should feed through the whole market. So for the ones of us who have jobs, things do look better.

You Need Higher Credit Scores than Ever

Three years ago, a credit score of 580 was good enough for you to earn approval for a wide range of attractive mortgages and other loans. Today, borrowers need scores well into the 700s (out of 850) to obtain similar terms. (George says that 620 will often work for a government loan. With Conventional loans the higher scores are more important).

Achieving these top-tier credit scores is tough enough when the system is fair. Often it isn't. Harmful practices by retailers and credit-reporting agencies can keep you from earning your rightful credit score. How to protect your score.

Decline all offers from stores that say, "No payments until."

Reason: Retailers typically team up with third-party finance companies to make these offers. They are the same finance companies that make high-interest-rate loans to high-risk borrowers. If one of these lenders is listed on your credit report, the scoring models that calculate your credit score might lower your score -- even if all you did was accept an offer to delay payments on a flat-screen television or a coffee table.

Do not apply for more than two or three credit cards, including store cards, within any 12-month span.

Reason: Each credit card you apply for, including store cards, posts a credit "inquiry" on your credit report. Make more than a few inquiries within a few months -- which often happens around the holidays when consumers take advantage of special card offers -- and your credit score might fall. These inquiries will continue to affect your credit score for 12 months.

Before you agree to become a customer, ask small lenders, cellular service providers and utilities whether they report on-time payment of bills to credit bureaus. If you have a choice of which company or lender to use, lean toward those that do report, so your responsible use of this credit counts in your favor.

Reason: With many credit card issuers, even when you act responsibly, you are not rewarded -- yet when you make even a small mistake, you are punished. Because many utility companies, cell phone service providers and small lenders, such as credit unions, don't bother to report on-time payments to any of the credit bureaus, they deprive their customers of an opportunity to improve their credit scores. But, if these customers default or their bills are turned over to a collection agency, that is reported, generally through the collection agency assigned to recover the debt.

Check your credit report for mistakes six months before applying for an important loan.

Reason: If you find an error on your credit report that is lowering your score, you can contact the credit bureau and correct the problem in time. If you don't check, when you apply for the loan, you may discover that your credit score is unfairly low.

No matter the mistake, it takes up to 30 days for credit bureaus to update credit reports. Best: Check your credit report with all three credit-reporting bureaus -- free -- once every 12 months at www.annualcreditreport.com. You can also purchase your credit score for $7.95 when you get your free report.

When a customer service rep agrees that a late or missed payment notice was in error, ask to be sent confirmation to this effect on company letterhead. This statement should note your name, account number and the date of the bill in question. If the erroneous late or missed payment later appears on your credit report, you can send copies of this statement directly to the credit bureaus.

Reason: Even when a lender agrees that it was wrong to accuse you of a late or missed payment, the lender may still report the problem to a credit-reporting agency. The customer service reps who correct the billing mistakes might lack access to the automated system that reports late and missed payments to credit bureaus.

DON'T FORGET THESE BASIC WAYS TO PROTECT YOUR SCORE

Use only a small amount of your available credit. Your credit score will suffer if you use more than 10% of your available credit on a particular account or among all your accounts.

Vary your credit. It's important to your score that you have many different types of credit, including several of the following: Credit card, retail store card, gas card, auto loan, home loan, student loan and personal loan.

Do not close old accounts. The older your credit card accounts, the better for your credit score.

John Ulzheimer / Credit.com

New Rules for College Credit Cards

The credit-card bill signed into law by President Obama addresses some, but not all, of the industry's most controversial campus practices.The landmark credit-card legislation that President Barack Obama signed into law on May 22 offers a bevy of protections for card holders. It outlaws some of the industry's most contentious billing practices. Card companies, for instance, will no longer be able to raise interest rates on card holders' existing balances until the borrower is 60 days behind in payments. And it forces the companies to give customers ample notice-45 days-before jacking up rates. The bill also addresses some of the worst abuses of credit-card use on campuses. Without a co-signer, full- time college students under 21 will be confined to what amounts to credit-card training wheels, with credit restricted to 20% of a student's income. The presence of a co-signer protects college students from sudden rate increases; under the new law, a student's co-signer has to approve any such hikes. But the sweeping law, which takes effect in seven months, doesn't address every college credit-card controversy. Most notably it does little to address affinity-card contracts, which encourage colleges and universities to sell students' contact information to credit-card companies. These often confidential contracts bond hundreds of schools across the country with credit-card companies eager to sign up undergraduates. In some cases the school's financial reward increases handsomely when students frequently swipe their cards. Should Colleges Encourage Borrowing?Students at the University of Michigan, for example, probably aren't aware that their e-mail addresses and contact information are worth a whopping $25.5 million. That's how much Bank of America (BAC) is paying the Michigan Alumni Assn. over an 11-year affinity-card contract to market school-branded plastic to students, alums, and sports fans. The Michigan Alumni Assn., which forged the deal, gets 0.5% of total purchases racked up on the school-branded cards. And the University of Michigan is hardly alone in inking a contract that rewards it for turning over students' personal information-precious leads in the hunt for new customers. Such financial alliances, in which participating schools have an incentive to encourage credit-card use, raise questions about the role colleges should play in the credit-card debate. Should schools be entering into these agreements, encouraging students to amass often high-cost debt at a time when tuition costs have ballooned and growing numbers of students struggle to make ends meet? Roughly half of the nation's college students carry at least four cards in their wallets, shouldering an average of $3,173 in debt, according to Sallie Mae (SLM), the student lender that monitors college-debt levels. College students aren't just swiping their cards to pick up pizza tabs or buy school-spirited sweatshirts. They are increasingly using them for such big-ticket items as college tuition. Just five years ago, 24% of students charged a portion of tuition to a credit card-a number that has grown to about 30%, according to Sallie Mae.Online Payment Fees Will Be BannedAt the bill-signing ceremony, President Obama emphasized that the new law was aimed at upholding basic standards of fairness and accountability. He said that credit cards can be a valuable tool for consumers while he decried unfair billing practices that can transform credit cards from a "lifeline" to an "anchor." The bill is the first significant piece of legislation passed to rein in the credit-card industry in the past decade. Under the law, banks won't be able to raise rates on outstanding balances until a card holder is 60 days late with a payment. Even if consumers pay late and become subject to a rate increase, there's an escape hatch: If they pay on time for the next six months, the card company must immediately restore the lower rate. The bill also eliminates fees for paying balances online. More flexibility is built into the law as well. Credit-card companies now have to apply payments to that part of a consumer's debts that carries the highest interest rates.

http://www.businessweek.com/bwdaily/dnflash/cont ent/may2009/db20090522_377377.htm? campaign_id=yahoo

A few days ago I sat down with a friend. His is a little older and is still working. He was wanting to pull cash out of his home on a refinance to pay some bills. But alas the numbers didn't work. But then I told him about our reverse mortgages. We are going to be able to pay off his current balance and pay off about a hundred thousand dollars in debt and he will only have to pay his taxes, insurance and upkeep on the home. Unbelievable but it is true. This will leave him in position where he can retire if he wants to. There is no credit check (although in this case the credit was great). There has to be substantial equity in the home and you have to be over 62. If you know someone this would help please let me know.

Today's market

On the financial scene the stock market had a big day. In fact it seems to have started back up. That could also mean the rates are going to follow. That is the way the past few days have looked. It is good for the 401k, But it makes the refinancing numbers look less attractive. Home sales as seen from my office have definitely improved. We are busy ( but not too busy to give you or a friend great service. If you or someone you know is interested in refinancing give me or my associate Daniel a call at 777-HOME (4663) before the opportunity gets away. It seems the economy is doing better and then it seems it isn't. No one knows what the future holds.

Mortgage Corner

One of my good Realtor's just left our new office. I quote her "I am really really busy and I'm not complaining" I am hearing that a lot lately. It isn't like the old days, but a step in the right direction. And rates are back to 5% or just above. I know I probably sound like a cheer leader, but that is ok. I really believe that our reality is whatever we believe it to be.

Market Status

We continue to see gradual improvement in the economic statistics around the country. Not big improvements, but it does seem to be going the right direction. Unfortunately the rates have not gone back to the 4's and it is seems more and more unlikely that they will. But the direction is anyone's guess. I recommend that if today's numbers work for you that you buy or refinance. As far as buying, one can get a house at the prices of the early 2000's at a rate in the 5's. That makes housing a bargain. As far as refinancing, every situation is different. I don't mind figuring how it would come out for you. Just give me a shout at 777-HOME (4663) or reply to this e- mail.

Market Status

April statistics show that about 455,000 first-time buyers took advantage of low prices, great interest rates and the $8,000 tax credit and closed in the first quarter of the year on their first new home. I believe that is picking up momentum. There probably won't be a better time than now to buy. Chances are prices will start to go up and with a better economy rates will also start to rise. We have already seen the beginnings of that.For people that wanted to refinance but were waiting for that magic 4% they kept reading about. The opportunity may be gone. However there are many folks who could still benefit. If you know someone like that tell them to call me at 777-4663 for some numbers to ponder and hopefully snatch up.

If you know someone in the market for a new home at the great terms available today please give them my number 777-home (4663) or e-mail george.margrave@migonline.com and we will take care of it.

Is it good news or bad news? The market takes a hit!

Last week the mortgage market took a substantial hit. That is: the rates went up more than a little. The 30 year rate is still in the low 5's which historically is very, very good. But it is more than the 4% many people were waiting for. The good news is that usually when the economy starts getting better rates do increase. There is a wild card here. The U.S. Treasury has been buying mortgage backed securities to drive the rate down. They still have more than half the money that they committed for that available. So the question is will they or can they pull them back down. By the way the short term (10 or 15 year) rates are still in the 4's so those folks that are interested in shorter terms can still find a great number for them.

Happy Days Are Here Again!

This morning after Memorial Day, I arrived into the office to see that my Realtor friends had been busy over the weekend. Five new contracts this morning. (and more under negotiation). I really believe the industry has turned the corner. Of course the first thing the seller’s agent wants from us is updated loan commitment letters. They want to make sure that their clients are protected and that baring unforeseen difficulties their transaction will close. We had already done a lot of work on most of these transactions so we are at work updating things and getting out new letters.

If you know someone in the market for a new home at the great terms available today please give them my number 777-home (4663) or e-mail george.margrave@migonline.com and we will take care of it.

The $8,000 tax credit and down payment assistance

Some of you may have heard that FHA came out with a new down payment assistance program (besides THDA). That was true, but sadly no longer. Almost as soon as they put it out the powers that be decided that it was going to be abused and they canceled it.

However HUD is working on another plan to change things. The new plan would let approved lenders like MIG provide buyers with the tax credit cash up front so that it could be used for the down payment. This was revealed by Shaun Donovan, HUD secretary in a speech before the National Association of Realtors.

But in the meantime there are still lots of ways to buy a home with no money. Some are VA (you may not know it, but Reservists and Guardsmen can get VA benefits), Rural Housing and FHA/THDA. The FHA THDA option is typically for First time homebuyers (defined as not owning a home in the last three years), but that requirement is waived for Williamson and Sumner Counties. (I believe Rutherford County will be added to that soon.)

I can help. If you or a friend wants help with it, just email me at george.margrave@migonline.com or call 777-HOME (4663).

Asking for too much!

We are starting to see a lot of purchase activity in the market place. The first time buyers almost have too good a situation. This includes people in Williamson and Sumner counties that are not first time buyers

First, the market has lots of home to choose from at great prices (more on that in a minute).

Second, they can buy them with loans that have interest rates not seen in 50 years of keeping records.

Third, in spite of all that has happened in the housing market, they can still buy with no money down.

Fourth with one the exception of one of the groups above there is a federal tax credit of up to $8,000 ( this is just plain and simple free cash) and in other cases there are grants up to $9,040 available with THDA).

So with all this, what is happening? Buyers are having Realtors drive them to multiple homes and making multiple low ball offers, even though in most cases, the seller has been forced to price their home at a price that is right. Maybe people think all this is too good to be true. But we believe pick the best home available, pay a fair price and enjoy.

I can help. If you or a friend wants help with it, just email me at George.margrave@migonline.com or call 777-HOME (4663).

66 Ways to Save Money on Everyday Expenses

For most kinds of purchases, you can get valuable advice and comparisons on the Internet. Ask a librarian or friends which Internet sites they think are helpful, or you can use a search engine like Google or Yahoo. Be aware that information you find is often biased. At many websites, the only products or sellers listed are ones that pay to advertise. Before buying anything on the Internet, check several websites and make sure you deal with reputable dealers.Here is a list of 30 ways to save money on common purchases (the next 33 will come next week):

1. Compare low-cost carriers with major carriers that fly to your destination. Remember, the best fares may not be out of the airport closest to you.

2. Include a Saturday evening stay-over or purchase the ticket at least 14 days in advance. Ask which days of the week and times of the day have the lowest fare.

3. Even if you are using a travel agent, check airline and Internet travel sites, and look for special deals. If you call, always ask for the lowest fare to your destination.

4. Since car rental rates can vary greatly, compare total price (including taxes and surcharge) and take advantage of any special offers and membership discounts.

5. Rental car companies offer various insurance and waiver options. Check with your automobile insurance agent and credit card companies in advance to avoid duplicating any coverage you may already have.

6. You can save thousands of dollars over the life- time of a car by selecting a model that combines a low purchase price with low depreciation, financing, insurance, gasoline, maintenance, and repair costs. Ask your local librarian for new car guides that contain this information.


7. Having selected a model and options you are interested in, you can save hundreds of dollars by comparison shopping. Get price quotes from several dealers (over the phone or Internet) and let each know you are contacting the others.

8. Remember there is no "cooling off" period on new car sales. Once you have signed a contract, you are obligated to buy the car.

9. Before buying any used car: Compare the seller's asking price with the average retail price in a "bluebook" or other guide to car prices which can be found at many libraries, banks, and credit unions; Have a mechanic you trust check the car, especially if the car is sold "as is."

10. Consider purchasing a used car from an individual you know and trust. They are more likely than other sellers to charge a lower price and point out any problems with the car.

11. Don't decide to lease a car just because the payments are lower than on a traditional auto loan. The leasing payments are lower because you don't actually own the car.

12. Leasing a car is very complicated. When shopping, consider the price of the car (known as the capitalized cost), your trade-in allowance, any down payment, monthly payments, various fees (excess mileage, excess "wear and tear," end-of- lease), and the cost of buying the car at the end of the lease. A valuable source of information about auto leasing can be found in Keys to Vehicle Leasing: A Consumer Guide, which is published by the Federal Reserve Board and Federal Trade Commission.

13. You can save hundreds of dollars a year by comparing prices at different stations, pumping gas yourself, and using the lowest-octane called for in your owner's manual.

14. You can save up to $100 a year on gas by keeping your engine tuned & your tires inflated to their proper pressure.

15. Consumers lose billions of dollars each year on unneeded or poorly done car repairs. The most important step that you can take to save money on these repairs is to find a skilled, honest mechanic. Before you need repairs, look for a mechanic who: is certified and well established; has done good work for someone you know; and communicates well about repair options and costs.

16. Talk to your agent or insurer about raising your deductibles on collision and comprehensive coverage to at least $500 or, if you have an old car, dropping this coverage altogether. This can save you hundreds of dollars on insurance premiums.

17. Make certain that your new policy is in effect before dropping your old one.

18. You can save several hundred dollars a year on homeowner insurance and up to $50 a year on renter insurance by purchasing insurance from a low-price, licensed insurer. Ask your state insurance department for a publication showing typical prices charged by different licensed companies. Then call at least four of the lowest priced insurers to learn what they would charge you. If such a publication is not available, it is even more important to call at least four insurers for price quotes.

19. Make certain you purchase enough coverage to replace the house and its contents. "Replacement" on the house means rebuilding to its current condition.

20. Make certain your new policy is in effect before dropping your old one.

21. If you want insurance protection only, and not a savings and investment product, buy a term life insurance policy.

22. If you want to buy a whole life, universal life, or other cash value policy, plan to hold it for at least 15 years. Canceling these policies after only a few years can more than double your life insurance costs.

23. Check the National Association of Insurance Commissioners website (www.naic.org/cis) or your local library for information on the financial soundness of insurance companies.

24. You can save more than $100 a year in fees by selecting a free checking account or one with no minimum balance requirement. Request a complete list of fees that are charged on these accounts, including ATM and debit card fees.

25. See if you can get free or lower cost checking through direct deposit or agreeing to ATM only use. Be aware of charges for using an ATM not associated with your financial institution.

26. Before opening a savings account, find out whether the account is insured by the federal government (FDIC for banks or NCUA for credit unions). Financial institutions offer a number of products, such as mutual funds and annuities, which are not insured.

27. Once you select a type of savings account, use the telephone, newspaper, and Internet to compare rates and fees offered by different financial institutions, including those outside your city. These rates can vary a lot and, over time, can significantly affect interest earnings.

28. To earn the highest return on savings (annual percentage yield) with little or no risk, consider certificates of deposit (CDs) or U.S. Savings Bonds (Series I or EE).

29. To avoid late payment fees and possible interest rate increases on your credit cards, make sure you send in your payment a week to ten days before the statement due date. Late payments on one card can increase fees and interest rates on other cards.

30. You can avoid interest charges, which may be considerable, by paying off your entire bill each month. If you are unable to pay off a large balance, pay as much as you can. Try to shift the remaining balance to a credit card with a lower annual percentage rate (APR). You can find listings of credit card plans, rates, and terms on the Internet, in personal finance magazines, and in newspapers.

31. Be aware that credit cards with rebates, cash back, travel awards, or other perks may carry higher rates or fees.

32. To save as much as several thousand dollars in finance charges, pay for the car in cash or make a large down payment. Always get the shortest term loan possible as this will lower your interest rate.

33. Make certain to get a rate quote (or pre- approved loan) from your bank or credit union before seeking dealer financing. You can save as much as $1000 in finance charges by shopping for the cheapest loan.


http://www.creditunionsonline.com/news/2009/66- Ways-To-Save.php

Sent by Jennifer Hamby

How important is my score?

Many times you have seen credit score information in this spot. And many of you take heed. But from my observations there are many of my readers and of the population in general that have not let the importance of a good credit score soak in. Poor credit scores can be extremely costly and some folks are just oblivious. They can make your renter's insurance, home owner's insurance, car insurance, car loan interest rate or credit card interest rate be much more costly for you than for the person with good credit scores. Some folks just think they can't do anything about it. But that is not true. You just have to learn to manage credit and learn what helps it and what hurts. It is almost like overeating. It takes a life change to make it better.

I can help. If you or a friend wants help with it, just email me at george.margrave@migonline.com or call 777-HOME (4663).

Today's financial markets "per George"

It looks to me like the economic world is improving. I guess that would be true as long as you aren't the one without a job. From what I read the new unemployment claims have slowed down. There seems to be a little more spending in the stores and restaurants. The stock market is doing better (except for Monday). That alone helps people to be more optimistic. The banks are making money instead of losing so much. There are lots of talking heads trying to be negative, but somehow there is optimism showing. And that is what it takes. As long as your job is secure it is a really good time to buy a home. The government's affordability index is very high in fact the highest in 39 years. The great prices combined with the very low rates make for a great housing opportunity.

If you or someone you know would like to be qualified my e-mail address is george.margrave@migonline.com

For additional information, call George at 615/777- HOME (4663) or email George.Margrave@migonline.com.

ID Theft Emerges as Top Crime

According to the Justice Department, identity theft has been the top-ranked reported crime by consumers for the ninth consecutive year and has passed drug trafficking as the top crime in the nation. It's a threat mortgage lenders know all too well. Earlier this week, the Mortgage Asset Research Institute, in its 11th Periodic Mortgage Fraud Case Report to the Mortgage Bankers Association, said reported incidents of mortgage fraud increased by 26 percent in 2008 to unprecedented levels. And the Financial Crimes Enforcement Network reported last month that suspicious activity reports on mortgage fraud increased by more than 44 percent from 2007 to 2008.

MARI reported that “straw buyers” engaged in fraudulent activity represents an emerging trend in identity theft. Fraudsters have increasingly stolen identities of elderly people and immigrants, setting them up as straw buyers to commit mortgage fraud.

“Fraud can represent up to 5 percent of lost revenue,” said Heather Czermak, senior product manager with Wolters Kluwer Financial Services, Minneapolis. “The return on investment on fraud technology prevention can represent a 4:1 ratio in just the first year. The need for investment and the need for a controlled process is essential from a best-practices standpoint.”

“Because you deal with consumers every day, you know you have to deal with the identity theft issue,” said Terry Franzen, partner with Franzen and Salzano PC, Norcross, Ga. “You have to take stock of what is in your files—which are full of personal information—and take steps to ensure that the data are not compromised.”

One step is to determine who has access, as well as who should have access, Franzen said. “You have to go into your office with a jaundiced eye—kind of like being the bad guy—to see how easy it is to commit ID theft,” she said. “You need to train employees and contractors about safe information security practices.”

Franzen said financial institutions and consumers cannot be too careful when it comes to protecting identity. “I recently went to an FBI seminar, and the speaker said that everyone should shred all mail received at home,” she said. “All a thief needs is a magazine cover with your name and address.”

Mortgage lenders must comply by May 1 with the Identity Theft Red Flags Rule. By then, lenders must have a written plan in place for dealing with identity theft, not only in identifying specific red flags, but also assisting consumers who believe they have been a victim of identity theft.

“It's not a mystery about what a red flag is,” Franzen said. “It's those things that you need to have as part of your plan. And it should be a living, breathing document that gets reviewed and updated regularly.”

Failure to comply can result in stiff penalties, including a $2,500 fine for each knowing violation, cease and desist letters and Unfair and Deceptive Trade Practice Act violations, which can result in treble damages and attorney’s fees. “There really is no alternative to non-compliance,” Franzen said.

Donald Bundy, general counsel with Prospect Mortgage, Skokie, Ill., recently implemented a company identity theft prevention program. He said in 2008, the bank reported 120 cases of identity theft, of which 105 represented mortgage ID theft.

Initial steps are simple, such as getting the correct address and phone number of the alleged victim. “You have to make sure that you are making contact with the victim of the crime, and not the perpetrator,” Bundy said.

Another step involves informing the alleged victim that an investigator may be contacting them, as well as having them complete an ID theft package requesting more information and encouraging them to notify the police. “In some cases, they don't want to file a police report, because they know the perpetrator,” Bundy said. “At this point, you are protecting yourself as well as the alleged victim.”

All other legal actions, such as foreclosures and collections, must be suspended, Bundy said. “You don't open yourself up to further liability by further making them a victim,” he said. “If you further damage their credit, you further expose yourself to damages.”

Prospect's largest ID theft case involved a home equity line of credit account, in which the perpetrator stole nearly $725,000 to purchase two sports cars that were shipped to Nigeria. Prospect worked with Nigerian authorities to board the ship when it arrived in Lagos, only to discover that the ship made a stop elsewhere, where the cars were removed from the ship.

“It was a total loss,” Bundy said. “And it was preventable.”

By aggressively working with consumers, Bundy said, lenders can resolve ID theft problems and create goodwill. “If you want to generate a lot of bad publicity, then don't advocate for the victim,” he said. “Work with the victim and help them as much as you can.”

Czermak said technology and automation can assist lenders by embedding compliance within existing systems. “One reason why institutions are trying to embed compliance requirements is that it gets applied consistently across the loan pool,” she said. “It reduces the risk of employee training issues and enables real-time risk rating and risk scoring of new applications prior to doing business with them.”


http://www.mortgagebankers.org/tools/FullStory.aspx?ArticleId=2695


Sent by Jennifer Hamby

The $8,000 Tax Credit.

The news seems to need emphasizing, so here it is again.

http://www.irs.gov/newsroom/article/0,,id=205416,00.html

An article I found on the IRS regarding the $8000 credit. It explains some of the different options borrowers have to get the credit. I wasn't aware of the first option so I wanted to share.

The filing options to consider are:

** File an extension.Taxpayers who haven’t yet filed their 2008 returns but are buying a home soon can request a six-month extension to October 15. This step would be faster than waiting until next year to claim it on the 2009 tax return. Even with an extension, taxpayers could still file electronically, receiving their refund in as few as 10 days with direct deposit.

File now, amend later. Taxpayers due a sizable refund for their 2008 tax return but who also are considering buying a house in the next few months can file their return now and claim the credit later. Taxpayers would file their 2008 tax forms as usual, then follow up with an amended return later this year to claim the homebuyer credit.

Amend the 2008 tax return. Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. The amended tax return will allow them to claim the homebuyer credit on the 2008 return without waiting until next year to claim it on the 2009 return.

Claim the credit in 2009 rather than 2008. For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when they file the 2009 tax return rather than claiming it now on the 2008 tax return. This could benefit taxpayers who might qualify for a higher credit on the 2009 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.
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If You Pay PMI ...

When you take out a first mortgage with less than 20% down, you pay a monthly private mortgage insurance (PMI). If you took your mortgage on or after January 1, 2007, that PMI expense is now deductible. Simply use Line 13 on Schedule A -- the same form that you use to deduct mortgage interest and property taxes. Your lender should make this easy by telling you the amount of your PMI premium in Box 4 of your Form 1098. This deduction is scheduled to disappear after 2010, so make the most of it while it lasts!

Sent by my brother Ande

Market update March 25, 2009

The first day of Spring has come and gone. And it seems that the outlook of our industry and the Country is starting to turn the corner. The better days on the stock market makes everyone who has a 401k breath a little easier and even those who weren’t invested can look at the news and see less pessimism . And Monday the report of National Real Estate sales took a turn for the better.

Locally, THDA announced a new program where a person who hasn’t owned a home in three years can borrow the money for a down payment and then pay it back from the tax credit of $8,000. Or they can get a 4% grant from THDA (with a slightly higher rate) and still get their $8,000. So on a $175,000 home the total of free cash is $15,000. Couple this with great interest rates and bargain basement home prices and you have a great situation.

Don't Believe These 7 Credit Card Myths

They sound sensible, but acting on them can cost you

Myth No. 1: Writing 'See ID' on the signature line on the back of your cards will stop a credit card thief cold and absolve you of any liability if a thief uses it.

The Logic: The "Ask for ID" or "See ID" prompt reminds salespeople to confirm that the name on the credit card matches that of the person holding it.

The Reality: An unsigned credit card is invalid, technically, according to the agreements that card issuers have with retailers. Many clerks don't even check for signatures at all. If you do give a clerk an unsigned card or one with "See ID" written instead, they're supposed to have you sign the back of the card and check the signature against your driver's license or passport. But that's only if the cashier bothers to take the time to compare that signature to the one on the driver's license.

Myth No. 2: There's no credit limit on your American Express card, so you can buy anything you want.

The Logic: Years of powerful advertising from American Express have probably locked at least one of their messages in your mind: "No preset spending limit."

The Reality: AmEx has changed; it no longer issues only charge cards. They issue credit cards, which allow you to carry a balance. However, if you inspect the marketing info from Amex, the phrase "no preset spending limit" usually comes with an asterisk. In the fine print, you'll find wording to the effect that this "... does not mean unlimited spending. Your purchases are approved based on a variety of factors, including current spending patterns, your payment history, credit record and financial resources known to us."

Myth No. 3: You need one of each of the big cards -- Visa, MasterCard, American Express and Discover -- in your wallet because you may be stuck someplace that accepts one and not the others.

The Logic: People wonder if the place they're going will take the card(s) they have probably because of TV ads for Visa that show flashy restaurants & exclusive hotspots ... that don't take American Express."

The Reality: "If you have two of the big four, you're not likely to have any problems," says Linda Sherry, national priorities director for Consumer Action in Washington, D.C., "and millions of people just get by with one. It's much simpler."

Myth No. 4: You can give your credit score a boost by paying more than you owe.

The Logic: Paying more than you owe does temporarily bump up the amount of available credit on your card. It's also true that using a smaller percentage of the credit available in your accounts -- known in the industry as keeping a "low utilization ratio" -- helps your credit score. Lastly, it's thought that early credit scoring models may have given people a boost when they paid a personal or car loan a month early, so some may think that the same thing would apply to their plastic.

The Reality: "Even though you may be below zero on an account, it's assumed that's a temporary situation," says Roslyn Whitehurst, a spokesperson with the credit bureau Experian. "Whether you've got a credit of $100 or $1,000, it still shows as a zero balance for scoring purposes."

Myth No. 5: Using your debit card wisely can help your credit score.

The Logic: Debit and credit cards look alike, both bearing Visa, MasterCard or other logos. They're treated virtually the same by retailers. Thus, both should have an impact on credit scoring.

The Reality: "Having a bank account with a debit card and maintaining it properly shows that you're a responsible consumer," says Sherry. "But it is not taken into account" in credit scores, she says.

Myth No. 6: Retailers can set a minimum amount you can charge on a credit card when you buy something from them.

The Logic: In a small store or restaurant, it's not uncommon to find a sign that says, "$5 minimum for credit card purchases." If this wasn't allowed by the credit card companies, surely they'd crack down on it.

The Reality: Retailers who set minimum charges are breaking their agreements with the card companies. Because retailers pay interchange fee (on average, about 2% of the sale) plus possible transaction fees on each credit card purchase. When a store owner posts a sign like this, they risk losing their ability to accept cards. "You're allowed to charge any amount on your card, even a penny," says Zeichner. "The problem is that the retailer wants you to charge enough to make it worth his while."

Myth No. 7: If you go over your credit limit and pay it back before the due date, you'll be fine.

The Logic: Lots of people go over their credit limits. After all, credit card companies don't want to embarrass you and lose you as a customer, so they rarely decline your purchase. As long as you're a good customer and you keep the overage reasonable, they won't hit you with an over-the-limit fee.

The Reality: It's true that credit card companies don't want to decline your purchase when you go over your limit. And if you're buying something that puts you a few dollars or more over the top, there's a good chance they'll give you the green light. But remember, every time you pass that credit limit, even for a short period, you could give the issuer a reason to boost your interest rate to penalty rate levels -- sometimes more than 30 percent. To avoid fees, try calling before your purchase to see if they can give you at least a little bump in your credit line.

http://finance.yahoo.com/banking-budgeting/article/106525/Don

Sent by Jennifer Hamby

Don’t let the refinance opportunity pass!

Since the middle of December we have been delivering our own version of the stimulus to many of our clients. That is: we have been refinancing a lot of loans. It slowed a little the last two or three weeks when rates crept upward. But they have dropped back some again. We really don’t think you will see them get much lower if any. And picking the bottom of mortgage rates is like trying to outguess the stock market. Here are many reasons to take a look at it.

Lower rate and payment
Lower number of years
Pull out cash to pay off higher rate debts
Pull out money to improve your home

And you may have another idea. I don’t charge to run the numbers for you. Just call 615-777-HOME (4663) or e-mail george.margrave@migonline.com

Here is what I need to know:

Your best guess as to value of your home.
Loan balance of first mortgage and monthly payment
Balance for second mortgage and monthly payment
Annual taxes
Annual insurance
Approximate credit score
Would you like some cash from the loan and if so how much?
Would you want to add the closing cost to the loan?
How many years do you want me to figure?

Current Update!

What is happening in the mortgage world this week? I am seeing an increase in people interested in buying their first home. And why wouldn’t they. I just talked to a gentleman who was a veteran (actually a reservist). He didn’t know how good his situation is. He can buy with a 100% VA loan, negotiate for the seller to pay all his cost and move in for zero investment. He was still thinking he should wait (even though the selection of homes for great prices is fantastic and the interest rate near an all time low). He is conservative and wanted to wait and save reserves. Then I pointed out the $8,000 tax credit from the government will take care of that.

I think it is a go!

Phone 615-777-HOME (4663) E-mail george.margrave@migonline.com

First-Time Homebuyer Tax Credit - - Free $8,000 !!

Mortgage Investors Group is Tennessee's #1 "First Time Buyer" Lender for 6 Consecutive Years!

1. Effective for purchases on or after January 1, 2009 and before December 1, 2009.

2. Credit of the lesser of 10% of cost of home or $8,000.

3. All principal residences are eligible

4. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.

5. Income limit is $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000). These numbers are based on adjusted gross income.

6. Purchaser (and purchaser's spouse) may not have owned a principal residence in 3 years previous to purchase.

7. Purchaser may use THDA financing.

8. No repayment for purchases that were made within above timeframe except that entire amount of credit is recaptured if home sold within three years..

Phone 615-777-HOME (4663) E-mail george.margrave@migonline.com

For additional information on the above, please visit website at:
http://www.federalhousingtaxcredit.com/

Avoid This Costly Mistake

If you've been following the financial news, you've probably heard that the Fed's been buying Mortgage Backed Securities and will continue to do so as needed. Unfortunately, some media outlets have picked up on the news and mistakenly reported that these purchases will continue to cause rates to drop lower into the summer.

But is that really what it means? No.

The truth is, the Fed has been buying Mortgage Bonds. BUT... more precisely, they're buying a lot of FNMA 30-yr 5.0% and 5.5% Bonds. Many of the mortgages in these pools are outstanding home loans with rates between 6.0% and 6.5%, as the rate that a borrower pays is different than the coupon rate given to an investor buying into that mortgage pool, with the difference being taken by Wall Street firms and government agencies. The loans in these pools the Fed is buying hand over fist are likely be refinanced and paid - because current rates make it very attractive to refinance a loan over 6.0% - and thus giving the Fed a quick recoup on some of their investment.

Bottom line: The Fed's purchase of higher rate coupons will not necessarily help rates to move lower, as their actions do not impact the loans being originated at today's low rates.

The Problem Is...

Many consumers are in situations where they can refinance now and save hundreds of dollars a month on their mortgage payments. But when they hear the media throwing around teases of lower rates ahead, they decide to hold off on making the decision to save, in the hopes of gaining a few more dollars of savings per month if a lower rate came their way. Of course, while they're waiting, rates could turn higher - and this window of opportunity could pass them by entirely.

Here's the Clincher.

Even if consumers are ultimately able to time the market perfectly and save another few bucks per month, they could still end up losing. That's because while they delayed, they lost the savings each month they could have gained by taking action sooner. In other words, they may have lost hundreds of dollars for every month they waited. So even if they got lucky and obtained the rate they were looking for, it could take years to make up what they lost by waiting.

I don't want anyone to miss an opportunity by either waiting or misunderstanding the media headline. Let's talk further on this. Call or email me, and let's discuss what this might mean for you.

Mortgage Market Guide

Phone 615-HOME (4663) E-mail george.margrave@migonline.com

No Credit Score?

Not all consumers will qualify to have a credit score. Their credit files might not have enough information to generate a credit score with the credit scoring models. This is often called a “thin file.” In order to be “scoreable,” your credit reports need to meet three minimum qualifications:

** You must have at least one account that has been open for 3 months or more. This is determined based upon the listed opening date of the account. Remember, you only need one of these accounts.

** You need to have at least one account that has been updated within the last 6 months. This is determined based upon the date reported to the credit bureaus.

** Your credit files can’t have any sort of “deceased” indicator on them. If you have a joint account with someone who passed away, it is possible that the lender will report the account as belonging to a deceased person. And if you’re a joint holder of the account, that notation can show up on your credit reports too. If it does, you won’t be able to be scored

All consumers are entitled by law to a free copy of their credit reports each year. You may wish to pull your credit reports to verify that the information in your credit files at TransUnion, Equifax, and Experian are accurate. To do so, go to http://www.annualcreditreport.com/ to pull your credit reports for free - once every 12 months. After you pull your credit reports, the site should provide you with contact information directly to the individual credit bureau in question. Please note that annualcreditreport.com does not provide you with your credit scores.

http://www.credit.com/answers/questions/34/No+Credit+Score%3F

Sent by Jennifer Hamby

P.S. I am willing to help with learning or improving our client’s score. Just give me a call at 777- Home (4663) or e-mail at george.margrave@migonline.com. Also It is still possible with a couple of government programs to get a loan without a credit score. However we can’t do it with a Fannie Mae or Freddie Mac loan which means you will have to have mortgage insurance no matter how much you put down. For that reason I believe folks in our time need to maintain credit records which is contrary to the advice of some of our financial gurus of today.

WHAT DOES THE FEDERAL RESERVE DO ANYWAY?

With the economy in the news every day, more attention is being focused on the Federal Reserve than ever before. Let's look at some of the facts, and understand exactly what they do and how they do it.

The Federal Reserve System was created on December 23, 1913 by President Woodrow Wilson to act as the central bank of the United States. It was created to provide the nation with a safer, more flexible, and more stable monetary, banking and financial system.

The Federal Reserve System is made up of twelve Federal Reserve Banks, overseen by the Board of Governors. The Board of Governors is located in Washington DC and is comprised of just seven members, who are appointed by the President and confirmed by the Senate. The full term of each member of the Board of Governors is 14 years, and the appointments are staggered such that one term expires on each even-numbered year. This system ensures that "fresh blood" will be brought to the Board every two years. When your term is up as a Board Governor, you are done, and cannot be reappointed. But if a member leaves the Board before his or her term expires, the person appointed to fill the remainder of the term can be reappointed for another full term. The terms for the Chairman and Vice Chairman are four years, but may be reappointed for additional four-year terms. The current Chairman, Ben Bernanke, and Vice Chairman Donald Kohn lead the Board of Governors.

So What Does the Fed Do on a Daily Basis?
The main responsibilities of the Fed include:

* Researching US national and regional economies
* Providing financial services to depository institutions, the US government, and foreign official institutions
* Supervising and regulating banking institutions to ensure the safety of the nation's financial system and protect the credit rights of consumers
* Conducting the nation's monetary policy by influencing the monetary and credit conditions in the economy (i.e. hiking or cutting the Fed Funds Rate, as they did recently) in pursuit of maximum employment, stable prices, and moderate long-term interest rates
* Communicating information about the economy via publications, speeches, seminars and websites

But the communication method that typically grabs the attention of most individuals is the statement given by Federal Chairman Ben Bernanke, following the eight formal meetings that take place about every six weeks throughout the year. At these meetings, the Fed has the opportunity to make changes to the Federal Funds Rate, and make their decision by reviewing economic and financial conditions. They can also make adjustments to the Fed Funds Rate outside of these meetings, but rarely do so because they don't want to deliver a surprise that could rattle the financial markets.

Overall, the Fed's main responsibility is to keep the economy growing at a steady pace by keeping inflation stable and rates moderate. When inflation is low and stable, businesses and households can spend, knowing that their purchasing power can remain strong.

Teaching Moment for Children...

While you're watching the news on television or listening to it on your car's radio, your kids can probably hear--but not completely understand--the news too. That means now's a perfect time to turn the current economic news into a lesson on money and finances. One terrific website can be found at www.federalreserve.gov/kids, which gives a very simple overview of the Fed and what they do, including a great definition of inflation that any small child can understand.

www.mortgageguide.com

P.S. I am sure this is more than you ever wanted to know.

Current Situation

Many people are taking advantage of the low interest
rates to lower their housing expense. History has
shown that this can be a great stimulus for the
economy. The savings are for many years and give
the consumers (that's is us) money to put back in the
economy.

The next step is for the folks who want to
move to a different home or buy that first home to step
up. If a persons job is secure, I believe the timing
could not be better to make that step.

If you would like to take the first step give me a call at 777-HOME
(4663) or e-mail me at : george.margrave@migonline.com

An Optimist

"AN OPTIMIST STAYS UP UNTIL MIDNIGHT TO SEE THE NEW YEAR IN. A PESSIMIST STAYS UP TO MAKE SURE THE OLD YEAR LEAVES." Bill Vaughan. 2008 turned out to be a historic year on many counts, and optimists and pessimists alike were glad to close the books and say goodbye to the old year. In observance of the New Year's holiday, the Bond market closed early last Wednesday and was closed all day Thursday, but there was still plenty of time for volatility due to several noteworthy news items. With a great deal of midweek activity, Bond pricing ended the week slightly worse with home loan rates about .125% higher than where they began.

Early last week, a renewal of military conflict between Hamas in Palestinian Gaza and Israel sent crude oil jumping higher on concerns of supply disruption, causing volatile activity in both Stocks and Bonds. The strife in the region continues, and may cause more movement in the financial markets over the coming weeks.

GMAC received a $6 Billion lifeline from the Treasury to help stave off a bankruptcy protection filing or complete shutdown. This would have spelled big trouble for GM, as GMAC helps to finance purchases of most GM vehicles. This assistance is part of a larger effort to help aid the troubled auto industry, and GMAC announced that they will immediately resume financing to a wider range of car buyers. Stocks moved higher on the good news, which pulled a bit of money out of Bonds and caused home loan rates to rise.

NOTE: Stocks have made some nice moves higher of late, breaking above a key line in the sand at their own 50-day Moving Average. And with a great deal of cash on the sidelines waiting to be put back to work, as well as retirement money getting ready to be invested before tax time, this could spell better days ahead for Stocks. While money flowing into Stocks can sometimes pull money from Bonds and cause home loan rates to rise, the Fed has said they will be doing some buying of Mortgage Bonds, which could help home loan rates weather the storm much better than they have in the past.

In economic report news, the Chicago Purchasing Managers Index - which measures manufacturing activity - came in at 34.1, very close to estimates of 33.0. But Consumer Confidence somewhat unsurprisingly missed advance expectations of 45.5, arriving at a dismal, record low of 38.0. Just by way of perspective, last year at this time, Consumer Confidence was at 88.6...so there's been quite a decline during 2008.

Also adding to the movement in the markets last week, the Securities and Exchange Commission recommended against suspending FASB 157, otherwise known as fair-value accounting rules or "mark to market". These rules led to the failure of many financial institutions that really weren't in bad shape, but simply made them appear to be overleveraged as they were forced to value their assets against distressed institutions selling at steep discounts. This announcement was not a surprise, as it wasn't expected that they would completely eliminate the rule and go back to the days of Enron-style accounting and valuation systems which lacked transparency. For now, the SEC is instead suggesting "improvements" to deal with illiquid markets and reducing the number of models used to measure impaired assets...but the details of those "improvements" are yet unknown.

Rest assured that as 2009 kicks into full gear, I will be watching closely and keeping you updated as to all the latest financial news stories, market action, and home loan rate developments. Because windows of opportunity can be fleeting, please call me to look over your own financial situation so that we are ready to act on your behalf.

Mortgage Market Guide