Register Real Estate Advisors

Would you like to know how much your mortgage payments will be?  I offer over 15 calculators for FREE on my website.  You can even email the printable results directly to your inbox or someone else to share.  To aid in your decision-making process when buying a home, you can use my handy calculators to calculate your monthly payment with PMI, insurance, and property taxes.  You can also “peek into the future” to see the remaining balance of your mortgage after several months or years of payments.  There’s a mortgage length calculator that allows homeowners to determine what their savings will be if they make larger monthly payments.  Ever wondered how much you will pay for every $1,000 of your mortgage loan?  I have a calculator for that!  I offer an affordability calculator so you can find out how much you can borrow from a lender.  You can calculate your tax savings after a home purchase.  The financial analysis inclues first year as well as total tax savings.  Is your old APR (Annual Percentage Rate) too high? Find out if you should refinance by estimating the benefits of refinancing using my calculator.  Learn how you can cut current monthly debt payments using money from your Home Equity Line Of Credit (HELOC.)  Do you need to know how much money you must earn to purchase the house of your dreams? I offer a calculator that will help you figure it out.  What is better: take a second loan or pay PMI?  Housing market moving up too fast? Figure out how much you can afford with an interest only mortgage loan.  Interest-Only loans can drastically cut your mortgage payments, but what if you want to pay something toward your principal? Figure all of this out using my calculators.  Can’t decide which loan offer is better? Input your numbers to lock-in the best offer.  You heard that bi-weekly payments can significantly decrease the time of mortgage payoff?  Ioffer a calculator for that, too.  Still renting an apartment and thinking about a home purchase? I have a calculator that can help you make the final decision.  All of my calculators are FREE and the results can be emailed directly to you so you can easily share or print out the information.  Click Here to get started.

Not only does owning a home give you a haven for your family, it makes great financial sense, too. You can use the “Calculators” on my website to help you figure out how much your mortgage payment will be based on the interest rate and the amount of the home you want to purchase. The calculation below will also help you figure out what you can afford. It assumes a 28% income tax bracket. If your bracket is higher, your savings will be, too.
Rent: _____
Multiplier: X 1.32
Mortgage Payment: __________
Because of tax deductions, you can make a mortgage payment – including taxes and insurance – that is approximately 1/3 larger than your current rent payment and end up with the same amount of income.

Reprinted from REALTOR Magazine Online by permission of the National Association of Realtors, Copyriht 2005, All rights reserved

AUSTIN (Austin Business Journal) – Despite the national recession, Texas banks increased their lending levels in 2009, with a cumulative $247.1 billion in loans sent out from the state’s 629 banks, according to the Federal Deposit Insurance Corporation (FIDC).
That is compared with $233.5 billion lent from Texas banks in 2008 and $229.1 billion during 2007.
The FDIC does not discern between the types of lending that has occurred when making its calculations. Industry experts warn that the increased lending activity is good news if it was used to prompt business expansion, but not if it was caused by increased credit card debt.
Local bankers indicate that much of their increased lending activity was from businesses applying for loans at Texas banks after being turned down by national banks.
High oil prices and banking regulations adopted in Texas following the real estate bubble of the late 1980s and early 1990s largely muted the recession’s effects. Those regulations, coupled with the Lone Star State’s business sector diversity, are contributing to its strong lending position, said John Heasley, general counsel for the Texas Bankers Association.
Nationally, total loan and lease balances fell to $7.2 trillion in 2009 from $7.8 trillion in 2008 and $7.9 trillion in 2007, reported the FDIC.

WASHINGTON, D.C. (Washington Post) – The federal government has placed new requirements on lenders to reduce troubled borrowers’ mortgage payments to no more than 31 percent of their income for up to six months.
Several changes have also been made to the Home Affordable Modification Program. Borrowers in bankruptcy will now be eligible for mortgage relief under the federal program. Lenders will evaluate delinquent homeowners for the program before referring them to foreclosure.
The program will lower monthly payments by reducing mortgage rates to as low as 2 percent for five years and extending loan terms up to 40 years.
To complete the program, homeowners will go through a three-month trial period and provide proof of their income, as well as a letter documenting their financial hardship.

1. Develop a Family Budget – Instead of budgeting what you’d like to spend, use receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses, such as car repairs, illnesses, etc., as well as predictable costs such as rent.
2. Reduce your debt – Generally speaking, lenders look for a total debt load of no more than 36% of income. Since this figure includes your mortgage, which typically ranges between 25% and 28% of income, you need to get the rest of installment debt – car loans, student loans, and revolving balances on credit cards – down to between 8% and 10% of your total income.
3. Get a handle on expenses – You probably know how much you spend on rent and utilities, but little expenses add up. Try writing down everything you spend for one month. You’ll probably see some great ways to save.
4. Increase your income – It may be necessary to take on a second, part-time job to get your income at a high-enough level to qualify for the home you want.
5. Save for a down payment – Although it’s possible to get a mortgage with only 5% down – or even less in some cases – you can usually get a better rate and a lower overall cost if you put down more. Shoot for saving a 20% down payment.
6. Create a house fund – Don’t just plan on saving whatever’s left toward a down payment. Instead decide on a certain amount a month you want to save, then put it away as you pay your monthly bills.
7. Keep your job – While you don’t need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate.
8. Establish a good credit history – Get a credit card and make payments by the due date. Do the same for all your other bills. Pay off the entire balance promptly.

Reprinted from REALTOR Magazine Online by permission of the National Association of Realtors, Copyriht 2005, All rights reserved.

SEATTLE, March 2 /PRNewswire/ — The 30-year fixed mortgage rate on Zillow Mortgage Marketplace is currently 4.80 percent, down four basis points from 4.84 percent compared to this same time last week. The 30-year fixed mortgage rate peaked at 4.87 percent late last week before hovering below 4.80 percent over the weekend.
(Logo: http://www.newscom.com/cgi-bin/prnh/20060503/ZILLOWLOGO)
Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers through the site, and reflect the most recent changes in the market. These are not marketing rates, or a weekly survey.
The rate for 15-year fixed home loans is currently 4.23 percent, while the rate for 5-1 adjustable-rate mortgages (ARM) is 3.57 percent.
The total volume of mortgage requests in the past week was unchanged from the prior week. Of last week’s requests, 32.2 percent were for refinance loans, 65.8 percent were for purchase loans and 2.0 percent were for home equity loans. The prior week, 30.2 percent of requests were for refinance loans, 67.7 percent were for purchase loans and 2.1 percent were for home equity loans.
Below are current rates for 30-year fixed mortgages by state. Additional states’ rates are available at: www.zillow.com/Mortgage_Rates.
State Current 30-Year Fixed Rate (3/2/10) Last week’s 30-Year Fixed Rate (2/23/10) Change in Basis Points
California Mortgage Rates
4.71% 4.82% -11
Colorado Mortgage Rates
4.88% 4.92% -4
Florida Mortgage Rates
4.79% 4.86% -7
Illinois Mortgage Rates
4.79% 4.85% -6
Massachusetts Mortgage Rates
4.90% 4.88% +2
New Jersey Mortgage Rates
4.86% 4.89% -3
New York Mortgage Rates
4.88% 5.00% -12
Pennsylvania Mortgage Rates
4.81% 4.78% +3
Texas Mortgage Rates
4.69% 4.82% -13
Washington Mortgage Rates
4.82% 4.89% -7

About Zillow Mortgage Marketplace
Zillow Mortgage Marketplace is a free, open, and transparent lending marketplace, where borrowers connect with lenders to find loans and get the best mortgage rates. Borrowers anonymously submit loan requests and receive an unlimited number of custom mortgage quotes with real rates directly from thousands of competing lenders. Zillow Mortgage Marketplace also provides mortgage calculators, mortgage advice, mortgage widgets, and lender directories.
Zillow.com and Zillow are registered trademarks of Zillow, Inc.
SOURCE Zillow.com

Today rates went up…our Real Estate Research Center at Texas A&M said it was coming…

(COLLEGE STATION, Tex.) — Mortgage interest rates are low right now, but don’t expect that to last. When the government quits buying mortgage-backed securities, rates will head up and away.

Dr. Mark Dotzour, chief economist for the Real Estate Center at Texas A&M University, explained why mortgage rates were so low at the end of 2009.

“First, the global consensus among bondholders appeared to be that inflation will remain low in the United States for an extended period. This caused the ten-year U.S. Treasury rate to fall to between 3.2 and 3.6 percent for much of the second half of 2009.”

With extraordinary levels of federal deficit spending,  Dotzour said it is unlikely that the low-inflation scenario will be popular when the economy starts to rebound.  Consumers should expect mortgage rates to rise when signs of improvement appear.

A second factor contributing to the low mortgage rates is the Federal Reserve Bank’s unprecedented purchase of nearly all the mortgage-backed securities issued by Fannie Mae and Freddie Mac in 2009, he said. Totaling more than $1 trillion for the year, this program has been extended through the end of March 2010.

“The Fed has never done this before in its history, “said Dotzour. “They are doing this to stimulate the economy by keeping mortgage rates as low as possible. When the Fed stops buying these securities from Fannie and Freddie, mortgage rates are likely to increase, possibly quite abruptly.”

How far will rates go up when the Fed terminates its buying program?  Dotzour said that question is difficult to answer precisely, because this has never been done before. But many experts think that rates could move up one-half to 1 percent.

“The combination of extraordinarily low mortgage rates and current price levels are making homes extremely affordable to American families. In fact, national and Texas housing affordability indices indicate that homes are more affordable than ever. But this will not last. When the economy recovers and the Fed stops purchasing mortgages, rates will rise.”

To read more on this subject, see Dotzour’s article in the January 2010 issue of Tierra Grande magazine.

Credit Scores range between 200 and 800.  Scores above 620 are considered desirable for obtaining a mortgage.  These factors will affect your score.

1.  Your payment history.  Whether you paid credit card obligations on time.

2.  How much you owe.  Owing a great deal of money on numerous accounts can indicate that you are overextended.

3.  The length of your credit history.  In general, the longer the better.

4.  How much new credit you have.  New credit, either installment payments or new credit cards, are condidered more risky, even if you pay promptly.

5.  The types of credit you use.  Generally, it’s desirable to have more than one type of credit – installment loans, credit cards, and a mortgage, for example.

For more on evaluating and underststanding your credit score, go to http://www.myfico.com.

Reprinted from REALTOR Magaxine Online by permission of the National Association of REALTORS.

WASHINGTON, D.C. (Realtor.org) – The Federal Housing Administration (FHA) yesterday relaxed what is known as the “anti-flipping rule.”  FHA now provides mortgage insurance for some purchases in which the seller bought the property and held it for fewer than 90 days.  The change was made to speed up sales of renovated homes in communities with too many bank-owned and foreclosed homes, said FHA Commissioner David H. Stevens.

Credit scores, along with your overall income and debt, are a big factor in determining if you’ll qualify for a loan and what loan terms you’ll be able to qualify for.

1.  Check for and correct errors in your credit report.  Mistakes happen, and you could be paying for someone else’s poor financial management.

2.  Pay down credit card bills.  If possible, pay off the entire balance every month.  However, transferring credit card debt from one card to another could lower your score. 

3.  Don’t charge your credit card to the maximum limit.

4.  Wait 12 months after credit difficulties to apply for a mortgage.  You’re penalized less for problems after a year.

5.  Don’t purchase big-ticket items for your new home on credit cards until after the loan is approved.  The amounts will add to your debt.

6.  Don’t open new credit card accounts before applying for a mortgage.  Having too much available credit can lower your score.

7.  Shop for mortgage rates all at once.  Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquirey if submitted over a short period of time.

8.  Avoid finance companies.  Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management. 

This information is copywrited by the Fannie Mae Foundation and is used with permission of the Fannie Mae Foundation.  To obtain a complete copy of the publication, “Knowing and Understanding Your Credit,” visit http://www.homebuyingguide.org.  Reprinted from REALTOR Magazine Online by permission of the National Association of REALTORS.