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
Tuesday, February 24, 2009
Friday, February 20, 2009
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/
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/
Tuesday, February 10, 2009
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
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
Tuesday, February 3, 2009
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.
** 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.
Thursday, January 22, 2009
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.
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.
Wednesday, January 14, 2009
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
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
Friday, January 9, 2009
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
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
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