Learning To Use Credit Wisely

While we were driving back to Nashville, we listened to the “Dave Ramsey show”, which I haven’t done in a while. I think he does a tremendous amount of good, except if you follow him completely you will wind up without a credit score. He teaches folks to live without credit and I believe people should learn to manage credit.


He does that because there are a lot of people who will never manage it. They fall victim. So credit may be  similar to addiction to alcohol, gambling or tobacco. You just learn to use it, not abuse it.

He also talked about all the good people trying to talk to the major mortgage servicing companies about missed payments, late payments, short sale approvals and the like. He used their names which I will avoid. He points out that the person receiving the calls hates their job and for the most part doesn’t want to be there. That is probably why they aren’t there the next time you call. They found a better job and moved on, leaving you to talk to someone who could care less. He just says to keep trying, but lower your expectations. And if they tell you you have to be late or skip payments, don’t listen. You just hurt yourself more in the long run.

If you want someone to talk to, to find out if you have options, please give me a call at 615-777-4663 or send me an email at george.margrave@migonline.com, I am here to help in any way I can.

New FHA Streamline Loans...worth the wait!

FHA has finally done something good. There are lots of folks that bought their homes in the 2000 to May 31, 2009 timeframe that have not been candidates for refinancing. The reasons are usually one of these.


1 The new FHA MIPs made the numbers much worse than they should have been.

2. They owed more than their home was worth

FHA addressed this by announcing that for any person who has an existing FHA loan that was endorsed before May 31, 2009, the streamline FHA MIP will be .55 monthly and .01 up front. This is much lower than people buying a new home today with current MIPS.

So the numbers are going to be drastically better. The catch is that if you want to add closing cost to the loan , the home has to appraise for enough to do that. But if it won’t, then we can build the cost into the rate and do lender paid closing cost with no appraisal.

It is a win win for everybody.

Basically the only qualifying factor is that you have income, a minimum 640 credit score and no mortgage payments over 30 days late in the last 12 months.

Give me a call, 615-777-4663, shoot me an email george.margrave@migonline.com or refer someone you know looking to refinance. Look at the numbers. It will be worth it.

FEMA warns Congress clock is ticking on flood insurance program

By Erik Wasson - 04/25/12 11:33 AM ET


The Federal Emergency Management Agency on Wednesday stepped up pressure on Congress to reauthorize the National Flood Insurance Program (NFIP).


The program is set to expire at the end of May, and FEMA warned that after that time NFIP will not be able to issue new policies. The program is seen as key for limiting the costs of natural disasters.


“FEMA is urging Congress to reauthorize the NFIP and send a clear signal to citizens, communities, and private sector partners that the federal government will continue to support our nation's efforts to manage flood risk,” David Miller, associate administrator for FEMA's Federal Insurance and Mitigation Administration, said in a statement.


The House and Senate were unable to agree on a NFIP reauthorization last year, and extended the program without changes until May 31.


House Republicans are pushing their reform plan as part of a six-committee effort to replace the automatic spending cuts triggered by the failure of the congressional debt supercommittee last year.


The government will be forced to cut $109 billion in 2013 automatically starting on Jan. 2. The House-passed budget requested six committees to come up with detailed replacements for the across-the-board sequester.


The House Financial Services Committee has proposed a five-year NFIP bill that cuts the deficit by $4.9 billion. Authored by Rep. Judy Biggert (R-Ill.), it would increase rates charged to customers.


It is unclear where the six-committee process is heading. Officially the recommendations of the six committees are to be used as part of a budget reconciliation bill, but because the Senate is not passing a new budget resolution this year, that process appears to be a dead end. More likely, the recommendations will be used in a lame-duck negotiation with the White House on budget, spending and tax matters.


In the Senate Banking Committee Chairman Tim Johnson (D-S.D.) urged passage of his version of the bill.


“The Banking Committee unanimously passed a bipartisan bill that provides long-term stability with a 5-year reauthorization period and makes important reforms that set the program on a more fiscally-sound path, phases in premium increases to assist homeowners, and helps educate consumers about their flooding risks," he said in a statement. "It is my hope that we can find a bipartisan path forward before this critically important program lapses.”


Source:
http://thehill.com/blogs/on-the-money/budget/223619-fema-warns-congress-clock-ticking-on-flood-insurance-program

Don't Put Off Buying...HUD Raising MIP 4/1/2012

Last week I told you about how HUD is raising the MIP for their borrowers after April 1.  So If you are thinking of buying, you would save money by getting the transaction far enough along to order the FHA case number and appraisal.  My political comment on this may not interest you, but the powers that be are piling on the average homebuyer.  That is exactly what they talk against.  If housing were to have a recovery (even moderately) the whole economy would benefit dramatically.  So why would they keep putting the brakes to the most obvious things. I’m just saying.

You can reach me at 615-777-4663 (HOME) or email me at George.Margrave@migonline.com .

Higer MIP Coming April 1, 2012

No, that is NOT an April Fool's joke, but you can bet it really looks like one.

The FHA announced that it is raising Mortgage Insurance Premiums (MIP) for FHA mortgages. These increases will only impact new FHA loans and DO NOT impact existing FHA borrowers. The MIP changes can be summarized as follows:



* Upfront MIP increase by 0.75 points to 1.75%. The UFMIP as is the case now can be financed into the mortgage. This change is to be effective from April 1, 2012.


* Effective April 1, 2012 FHA is also increasing its MIP by 10 bps as required by the Temporary Payroll Tax Cut Continuation Act of 2011.


The FHA estimates these changes will add over $1 billion to their fund based on their volume projections through September 30, 2013.


We will have additional details as soon as possible.


From Jesse Lehn, MIG

Remember you can always reach me at george.margrave@migonline.com or http://www.mignashville.com/ or by phone at 615-777-HOME (4663). 

Are YOU a First Time Home Buyer? We can HELP!

I want to mention our expertise with First Time Home Buyers. My team accounted for the most THDA loans in the state for 2010. This fiscal year which is almost half done finds us in the lead again. I just want to point out that these loans are not always the easiest, but I think we are serving our community by working on them so diligently.



You may not realize it but in most cases we can structure it so that these buyers do not have to have money to make the purchase. (this is in spite of what you read in the media that 20% is required)The interest rates are great and as a result of this, our borrower often owns a home for less than the rent they were paying.

You can reach me at 615-777-4663 (HOME) or email me at George.Margrave@migonline.com .

Housing Trends, First Time Homebuyers

Happy New Year, friends! We start 2012 with a look at first time home buyers. Where would they like to live? The results are in and it's no surprise that 78% said "near shops and services." The top 7 are listed here:


1. Shops and services (78%)

2. Their job (75%)

3. In a very good school district (66%)

4. Parks and other open spaces (61%)

5. Family and/or relatives (61%)

6. Restaurants, nightlife and other activities (51%)

7. Easy access to public transportation (45%)

Take a look at this infograph for more interesting information. Click here for an enlarged version.


~~From Tennessee Title

You can reach me at 615-777-4663 (HOME) or email me at George.Margrave@migonline.com . 

Call on Us First

Over and over I receive calls from my clients and they start out with I talked to my bank and 1. They won’t return my calls or 2. They say they can’t close for 60 days or 3. They don’t do the kind of loan I want and so on and so on. I guess people call their bank because they think they will give them a better deal.


I can safely say that in most cases we can close much quicker, with a better rate and we do return our calls. In fact when you call us, a human answers and you don’t go into voice mail Hades.

I’m just saying. Call us first and save yourself some aggravation.  You can reach us at 615-777-4663 or via email at George.Margrave@migonline.com

Housing News: 11 Trends from 2011

The National Association of Realtors® surveys homebuyers and sellers each year to uncover housing trends and monitor changes taking place in the industry. This year's report highlights a number of trends that haven't been seen in years. Here are just 11 highlights from the 2011 report.

1. In 2011, 37% of homebuyers were first-time buyers - which was down from 50% in 2010.

2. Last year, 88% of homebuyers used the Internet to search for a home. That number was down slightly from a high of 90% in 2009.

3. The typical homebuyer searched for 12 weeks and viewed 12 homes.

4. The number of buyers who purchased their home through a real estate agent or broker climbed to 89% - a share that has steadily increased from 69% in 2001.

5. Nearly 1 out of 4 buyers said the application and approval process was "somewhat more difficult" than expected…and 16% reported it was "much more difficult" than expected.

6. About half of home sellers traded up to a larger and more expensive home…and 60% traded up to a new home.

7. The top 3 factors influencing neighborhood choice were: the quality of the neighborhood, the convenience to job, and the overall affordability of homes.

8. The typical seller lived in their home for 9 years. That number has increased from 6 years in 2007.

9. Although 61% of sellers said they reduced their asking price at least once, the average home sold for 95% of the listing price.

10. Only 10% of sellers sold their homes without the assistance of a real estate agent. Of those people, 40% knew the buyer prior to the sale.

11. The typical "for sale by owner" home sold for $150,000 compared to $215,000 for the average agent-assisted home sale.

All Contents ©2012 The National Association of Realtors®.

Mortgage Market Guide

If you would like to talk and find out what we can offer you, please give me a call at 615-777-4663 or send me an email at George.Margrave@migonline.com.

Home Sales Show Increase

Sales in Middle Tennessee grew by more than 20 per cent over 2010. There were 1502 single-family homes sold which is a gain of 21.4%. It was the 6th consecutive month that home sales topped their year-ago levels. People who haven't had confidence are now starting to move forward.

According to the Greater Nashville Association of Realtors single-family homes purchases for the entire year grew 1.5% over 2010 to reach 17,192 properties. It was the first time since 2006 that annual home sales rose for the year.

Williamson County saw an 8.4% increase. Median prices in both counties were slightly lower. The median price for the year was around $167,000 down about 1 per cent. Pending sales were up 23% which is a great sign of future growth

If you have been waiting on the economy, it may be time to get moving. Call George at 615-777-4663.

What's the real cost of the payroll tax cut?

When you heard that our Federal Government had extended the tax cut and long term unemployment benefits for two months, you were probably glad. If you read on, you discovered that the two months were financed on the back of the Real Estate industry. (For 10 years!) Details are still sketchy, but from what I understand every FHA, Fannie Mae or Freddy Mac loan closed for 10 years will have a 10 basis point surcharge. (That is almost the equivalent of .125% increase in the rate of probably about 90 percent of the loans that will close in that period.) Now I ask you which industry does our country desperately need to turn around? That is right, the real estate industry! So why not raise their cost?


I am honestly wondering if anyone in either party has a clue what they are doing up there.

I'm just saying----.
You can reach me at 615-777-4663 (HOME) or email me at George.Margrave@migonline.com .

Protecting Your Identity

We take all the necessary steps to guard your personal information... and so should you. If your holiday plans include purchasing a new home, be sure to include protecting your identity as an item on your "making a list and checking it twice" agenda. The effects of identity theft can damage your credit rating and impair your ability to obtain financing.


While you're trekking through the malls or cruising websites looking for great holiday bargains, it may be difficult to remember that not everyone around you is as caught up in the holiday spirit as you are. Some of your fellow shoppers may actually be identity thieves looking to parlay the season's hustle and bustle into an opportunity to steal your personal information and, ultimately, your money.

According to the FTC.gov website, it is estimated that as many as 9 million Americans have their identities stolen each year. On average, it takes a victim an estimated $500 and 30 hours to resolve each incidence of identity theft. No one wants to lose that kind of money at any time of year, but those time and monetary costs can be even more stressful during the holidays.

"The holidays present a wealth of opportunity for identity thieves," says Heather Battison, TransUnion's senior director responsible for consumer education. "The hectic holiday season can potentially expose our personal information to theft in both high-tech ways like phishing scams, and in traditional ones, such as a stolen wallet or mail theft."

Proactive steps from TransUnion that may help minimize your exposure to identity theft during the holidays:

'Tis the Season...to Protect Your Identity

*Only carry essential documents with you; take your driver's license and the credit card or cards you intend to use that day. Do not carry your Social Security card, birth certificate or passport.

*Keep a close eye on your credit card bills. This is especially important during the holidays, when close attention can help you catch any charges you don't recognize on your statement.

*The holidays mean plenty of extra trash. Shred everything that contains personal, identifying information before throwing it out.

*When shopping online, look for businesses with websites that have some level of security measures in place to protect you. For example: before you provide any personal or payment information, look for a URL that begins with https (not http) and a lock emblem on the page, typically next to the address bar.

*Before you surf the net, consider changing your account passwords and keep a list of them in a secure place. Passwords and PIN numbers should be a random mix of letters, numbers and special characters, which makes it harder for identity thieves to guess.

Preventing identity theft is important year round and especially during the holidays. By taking steps to protect yourself, you can help ensure your holidays remain bright - and secure.

~From Foundation Title

Remember you can always reach me via email at george.margrave@migonline.com or on the phone at 615-777-4663.  Happy New Year!

Give the Gift of Charity this Holiday Season!

It's a Snap with THE GOOD CARD® - a Gift Card for Charity

Network for Good has a fresh angle on gifting this holiday season: The Good Card® - a gift card for charity - is perfect for everyone on your list. Good Cards have a stored value that can be redeemed as a donation to any of more than 1.2 million charities based in the US. Good Cards can be distributed via email or physical mail, or can be private labeled to meet your brand needs. Learn more at Network for Good.

A gift card for charity is an ideal reward for employees or thank you gift for customers and vendors that links their passion for a cause to your company's brand. A new study by researchers from Harvard Business School, the University of British Columbia and the University of Liege that was recently highlighted in the Washington Post confirms that a bonus employees get to spend on others is more motivating than a bonus they get to spend on themselves. A Good Card recipient can redeem their gift card as a donation to any of more than a million nonprofits, an easy way for employees to share their personal rewards with others.

Good Card purchases, including fees, are tax-deductible to your company and are a creative way to spend funds earmarked for philanthropy. In addition, because Good Card purchases are charitable donations, they do not fall under the IRS gift limit or policies around corporate gifts with cash value. Network for Good's charity gift card program is turn-key, customizable and easy to implement - even at the last minute. The program is recommended for any company looking to put a special spin on their gift-giving this year. What's more, the person GIVING the gift (i.e., the card purchaser) gets the benefit of a tax advantage for charitable donations as well.

The Good Card is a creative and constructive way to honor partners and prospects, friends and neighbors during the holiday season and throughout the year. Visit Network for Good for more details.

Remember you can always reach me at 615-777-4663 or via email at george.margrave@migonline.com
 
Thanks for reading and Happy Holidays!

HUD $100 Down Homes

HUD is offering their foreclosed homes for $100 down until October 2012:

 

• Here is the deal
• It is only for HUD foreclosed properties
• You must use a HUD registered real estate broker or agent (If you need a referral we can help)
• You must qualify for and use FHA financing 
• You must be an “owner occupant”
• The $100 down payment program must be on the executed contract (specifically requested)
• HUD will pay up to 3% for closing costs
• 203K loans are eligible
• The homes are sold in “as is” condition

Please contact us if you have more questions George or Stephanie at 777-4663 (HOME) or email at George.Margrave@migonline.com or Stephanie.Holland@migonline.com .

 

New THDA Aquisition Limits

Last week we were notified by THDA (Tennessee Housing Development Agency ) that the acquisition limit for Davidson County MSA has been raised to $275,000. That means the first time buyers (defined as borrowers who have not had a marital interest in a home in three years) can buy a home up to $275,000. With our help the transaction can be structured with little to no cash needed by the borrower. That particular program has rates so low that the mortgage payment will very likely be less than rent. Also, do you know how nice the home that you get for $275,000 might be? Why would you be paying rent?


Just saying. That’s all.

Should you have any qeustions or need help with any of this, please feel free to contact me at my office, 615-777-4663 (HOME), my cell 615-481-4656 (LOAN) or via email at George.Margrave@migonline.com
  

TIPS FOR WORKING FROM HOME

Over 25 million people in the United States work from home and that number is increasing daily as companies and employers strive to decrease costs and increase productivity during these challenging economic times. While working at home is not feasible for every job or personality type, if your company allows it, it can be the perfect fit for some.

Here are five tips to make the most out of working from home:



1. Define your home office space

Make sure it is free from distractions and has a door you can close for privacy. This will also help differentiate between work and home life. Organize your home office as you would in your company's office space and spend a few minutes at the end of each day tidying up in preparation for the next business day.



2. Follow a dress code

Even if you are working from home, you should follow some sort of dress code. You don't have to don your best suit or anything that requires dry cleaning, but neither should you simply roll out of bed, and into your home office, still clad in pajamas or lounging clothes. Studies show that the way you dress affects your attitude and productivity.



3. Don't allow yourself to become "out of sight, out of mind"

Stay in contact with your boss and colleagues via email and phone. Remain accessible, communicate the successes and challenges associated with your projects to your boss, and collaborate with others as needed. Make certain that you stay on the radar and are always an essential contributor to the team.



4. Set regular office hours

Having regular office hours that include breaks and time for lunch will help you stay fresh, focused and allow you to accomplish your daily objectives. Try to resist the urge to go back into your office after your day has ended.



5. Get out and about

It is important to maintain ties with the outside world, so schedule a little time daily for outside activities. To avoid feeling isolated, take a brisk walk around the neighborhood during your break or schedule lunch with a client. This will help boost your energy level and maintain your positive outlook.


There are no hard and fast rules for working at home, as each individual and their situation will vary. Using these simple tips may help your home office become more efficient, effective and enjoyable, providing a win/win situation for both employer and employee!

~~From Foundation Title

PLEASE DON'T KEEP US A SECRET!

Thank you for confidence in our team

The George Margrave Team

Your Personal Mortgage Consultants

1-615-777-HOME (4663)

Fax Number 615-777-FAXX (3299)

www.mignashville.com

The Truth About Closing Credit Cards

If you have read anything about how to get and keep a high credit score, you have probably seen this advice: never close your credit cards. This advice is true and good. Sort of.


The 2 parts of valid reasoning behind the idea of not closing any credit cards are:

1. Closing a credit card will decrease your debt utilization ratio. A whopping 30% of your credit score is calculated from your Amounts Owed. Your debt utilization ratio (your total revolving debt divided by your total credit limit) needs to be as low as possible in order to reap the maximum credit score. Closing a credit card takes away some of your total credit limit, which can raise this ratio, and lower your credit score.

2. Closing a credit card will impact your length of credit history. It's a fact that the credit scoring model looks at how long a person has had credit established; the longer, the better. Closing a credit card you have had for many years may cause your length of credit history to decrease, which can result in a lower score.

So, there are valid reasons to not close your credit cards.


ADVICE: Never close a card that has a balance, your only credit card, or your oldest credit card!


But what if you have a ton of cards, are aiming to streamline your finances, and want to close some of them? Which ones can you close that will have minimal impact to your credit score?


If you have made the decision to close some of your credit cards, choose these (in this order):


Your newest card. The last credit card opened needs to be the first one to go. This card is not helping you very much with your length of credit history, so closing it should not have much impact on your credit score.

Your card with a zero balance. If you never use a particular piece of plastic, it is probably not figured into your credit score (credit lines must be used at least every 6 months in order to be factored into your credit score). Closing a card you never, ever use should have no impact on your credit score.

Your card with the worst terms. Big annual fees, high interest rates, and no perks give you no incentive to keep a card active.

You card with the lowest limit. A low limit credit card is probably having little effect on your debt utilization ratio. Closing low limit plastic can help limit your number of cards without great danger of credit score damage.

Closing credit cards doesn’t have to kill your credit score, just make sure you are choosing wisely.

Other points to remember are:

Always look at your debt utilization ratio before closing a credit card. If your ratio is going to be over 30%, don’t do it.

Always keep at least one credit card open and active, and pay the bill on time. This will give you points for managing credit wisely.

Always keep your oldest credit card open and active.

Take these tips to heart to ensure that whittling down your lines of credit has minimal impact on your credit score.

~~Susan McCullah is the Product Development Director for Data Facts, a 22 year old Memphis-based company that provides mortgage product and banking solutions to lenders nationwide

If you would like to speak with me about this or need any help, would like a copy of your credit report, please give me a call at 615-777-4663 or email me at george.margrave@migonline.com

Happy Thanksgiving!

Cash On Hand?

Today's topic is cash and miscellaneous deposits to your bank account. When processing a loan, it is an issue.


And you say how can that be a problem? When an underwriter looks at a bank statement and sees deposits that are not payroll they have to find out where it came from. They worry that it is unreported income which is a problem on loans with income limits such as THDA, or they worry that there is an unreported obligation, so you can save yourself a lot of aggravation if you have cash and can't document it by not putting it in your account. If you are going to need it to make your down payment, we need to address it. Call me for insight.

Should you have any questions or need help with any of this, please feel free to contact me at my office at 615-777-4663, my cell phone at 615-481-5626 or via email at George.margrave@migonline.com .

What is the rate today?

Every day we get these calls that start out with “what is the rate”? After discussing the situation it becomes apparent that they have found something like 2.875% interest on the internet somewhere. But no one told them how much the points and closing cost would be. If you pay enough you can buy almost anything. And if they get a little further in the process, they are asked to send their personal information to “who knows where”. The company may not even have a retail address. So when something goes wrong who can they talk to?


Or which person suddenly has all that personal information? ID Theft anyone?

I’m just sayin…………..

Remember you can always reach me via email at George.Margrave@migonline.com via telephone at 615-777-4663 or visit my website at http://www.mignashville.com/ I am more than happy to speak with you.