Just an update here as to the state of affairs with the housing market. It is definitely "cooling" as they like to say. Here is an article of interest from Arizona Republic (www.AZCentral.com)
Associated Press
Feb. 27, 2006 12:16 PM
WASHINGTON The backlog of unsold new homes reached a record level last month, as sales slipped despite the warmest January in more than 100 years.
The Commerce Department reported Monday that sales of new single-family homes dropped by 5 percent to a seasonally adjusted annual rate of 1.233 million units last month.
That was the slowest pace since January 2005 and left the number of unsold homes at a record high of 528,000.
Analysts viewed the new data as further evidence that the nation's red-hot housing market, which hit record sales levels for five straight years, has definitely started to cool.
"The decline in new home sales in January makes it clear that there is some real softening in the housing market, said Joel Naroff, chief economist at Naroff Economic Advisors.
The 5 percent decline was bigger than expected, dashing hopes that the milder-than-normal January would help to bolster demand. The warm weather had pushed up the level of construction starts last month by 14.5 percent, the fastest rate in three decades.
But the new report showed that with sales lagging, the increase in building activity left a total of 528,000 new homes still for sale at the end of the month, a nine-year high.
Even with the softening in sales, prices were up in January with the median price climbing to $238,100, up 4 percent from December, but below the all-time high of $243,900 set in October.
For the past few years, home prices have been surging at double-digit rates, gains that analysts said will likely slow now that sales are softening and inventories of unsold-homes are rising.
Ian Shepherdson, chief U.S. economist at High Frequency Economics, predicted "real downward pressure on prices over the next few months."
David Seiders, chief economist at the National Association of Home Builders, said surveys showed that the number of builders who are throwing in various amenities for free in order to move homes has risen to 41 percent.
Seiders predicted that home price gains, which were running around 12 percent last year, will slow to about 6 percent this year.
He said a lot of this year's change will reflect less speculative investor activity and more sales spurred by people desiring to live in the homes. "Hopefully, that is all that is developing here," Seiders said.
Some economists are worried that with the inventory of unsold homes rising, there could be significant downward pressure on home prices, triggering a chain-reaction similar to the bursting of the stock market bubble in 2000, a development that contributed to the 2001 recession.
But new Federal Reserve Chairman Ben Bernanke told Congress earlier this month that for now he was looking for a moderate slowdown in the housing industry, not a crash.
The 5 percent January drop in sales followed a revised 3.8 percent increase in December and was the biggest setback since a 7 percent drop in November.
The biggest decline in sales was a 14.9 percent decrease in sales in the Northeast, which followed an even bigger 23 percent plunge in sales in December. Sales in the Midwest were down 10.8 percent after having risen by 21.2 percent in December.
In the South, sales fell by 10.3 percent in January, following a 1.2 percent gain in December.
Bucking the national trend, sales in the West posted an 11.3 percent increase in January after a 6.3 percent gain in December.
Mortgage rates have been rising gradually with the 30-year mortgage now at 6.26 percent, according to the latest Freddie Mac survey. Many analysts believe 30-year mortgages will rise to between 6.5 percent to 7 percent by the end of this year.
They think that increase will be enough to trim sales of both new and existing homes and slow the double-digit gains in prices seen in recent years. The National Association of Realtors reported earlier this month that a record 72 metropolitan areas saw double-digit gains in home prices in the final three months of 2005 compared with price levels at the end of 2004.
Monday, February 27, 2006
Thursday, February 23, 2006
What Your Bankruptcy Lawyer doesn't Tell You...
I have helped several people get a mortgage after having a bankruptcy. I want to share with you a few pointers on how to position yourself to get approved for a mortgage if you have had a bankruptcy yourself.
Here are a few helpful facts / pointers:
1. A Bankruptcy will stay on your credit report for 10 years. Most attorneys do a good job and let their clients know this. The good news in that even with a bankruptcy on your credit report, you can have a high credit score. If you had a mortgage before, during, and after your bankruptcy and have paid it on time, you will usually have a pretty decent post bankruptcy credit rating.
2. If you have not seen your credit report, order a free copy now. Here is a link to a site that has the contact information for the credit reporting agencies: http://www.worryfreemortgageloans.com/credit_reporting.cfm
You may find that some or all of the creditors that were paid in your bankruptcy are still listed on your credit report. The next thing you should do is draft a letter to each individual credit bureau and send it along with a copy of your discharge papers. They will do nothing if you do not send them appropriate documentation. Here is a link to the FTC's web page regarding credit repair which includes sample letters to use in corresponding with the credit bureaus:
http://www.ftc.gov/bcp/conline/pubs/credit/bbcr.htm
3. Once your credit report is cleaned up, or even while it is in process, you need to contact a mortgage lender that specializes in post bankruptcy mortgages. How do you find one? Ask them.
Do not be afraid to ask your mortgage lender if he or she is experienced in working with bankruptcies. Many of them will tell you flat out that they don't; sadly some will say they do when in reality they just want a higher commission loan. As you ask the hard questions, you will find out if they are the real deal or not.
Currently, I provide post bankruptcy mortgage loans in Maryland, DC, and Virginia so feel free to contact me at anthony@anthonykirlew.com or 1-800-453-9290.
To contact a bankruptcy mortgage specialist for your area, visit: http://www.bankruptcyloans.info/info.cfm and select your state.
4. Get approved BEFORE you find a house. Make sure you clear all of your hurdles before writing your contract. This will reduce your stress, but most of all it will ensure that you get the house. Sadly, very few sellers will allow a financial glitch on your part to hold up the settlement, and they could legally keep your deposit and find another purchaser.
5. Realize that this takes time. Do not rush, and most of all be cautious in using a "credit repair expert" to help you as many of them are not legitimate. You now have the tools to do this yourself.
Until next time,
Anthony Kirlew
www.AnthonyKirlew.com
Here are a few helpful facts / pointers:
1. A Bankruptcy will stay on your credit report for 10 years. Most attorneys do a good job and let their clients know this. The good news in that even with a bankruptcy on your credit report, you can have a high credit score. If you had a mortgage before, during, and after your bankruptcy and have paid it on time, you will usually have a pretty decent post bankruptcy credit rating.
2. If you have not seen your credit report, order a free copy now. Here is a link to a site that has the contact information for the credit reporting agencies: http://www.worryfreemortgageloans.com/credit_reporting.cfm
You may find that some or all of the creditors that were paid in your bankruptcy are still listed on your credit report. The next thing you should do is draft a letter to each individual credit bureau and send it along with a copy of your discharge papers. They will do nothing if you do not send them appropriate documentation. Here is a link to the FTC's web page regarding credit repair which includes sample letters to use in corresponding with the credit bureaus:
http://www.ftc.gov/bcp/conline/pubs/credit/bbcr.htm
3. Once your credit report is cleaned up, or even while it is in process, you need to contact a mortgage lender that specializes in post bankruptcy mortgages. How do you find one? Ask them.
Do not be afraid to ask your mortgage lender if he or she is experienced in working with bankruptcies. Many of them will tell you flat out that they don't; sadly some will say they do when in reality they just want a higher commission loan. As you ask the hard questions, you will find out if they are the real deal or not.
Currently, I provide post bankruptcy mortgage loans in Maryland, DC, and Virginia so feel free to contact me at anthony@anthonykirlew.com or 1-800-453-9290.
To contact a bankruptcy mortgage specialist for your area, visit: http://www.bankruptcyloans.info/info.cfm and select your state.
4. Get approved BEFORE you find a house. Make sure you clear all of your hurdles before writing your contract. This will reduce your stress, but most of all it will ensure that you get the house. Sadly, very few sellers will allow a financial glitch on your part to hold up the settlement, and they could legally keep your deposit and find another purchaser.
5. Realize that this takes time. Do not rush, and most of all be cautious in using a "credit repair expert" to help you as many of them are not legitimate. You now have the tools to do this yourself.
Until next time,
Anthony Kirlew
www.AnthonyKirlew.com
Thursday, February 16, 2006
Mortgage rates rise to highest level in 2 months
Associated Press Feb. 16, 2006 12:11 PM
WASHINGTON - Rates on 30-year mortgages edged up for a fourth straight week, rising to the highest level in two months, Freddie Mac reported Thursday.
The giant mortgage company said its nationwide survey showed that rates on 30-year mortgages rose to 6.28 percent, up from 6.24 percent last week.
It was the fourth consecutive increase and left the 30-year mortgage at the highest level since it stood at 6.30 percent the week of Dec. 15. Rates on 30-year mortgages had dropped as low as 6.10 percent in mid-January before beginning their latest increase. Economists believe the path of mortgage rates this year will be heavily influenced by what the Federal Reserve does with the short-term interest rates that it controls.
New Federal Reserve Chairman Ben Bernanke in congressional testimony on Thursday left the door open for further rate hikes and many economists believe the Fed will raise rates at least once more at its March 28 meeting and possibly at a May 10 meeting as well.
Private economists are predicting that the 30-year mortgage by the end of this year will have risen to between 6.5 percent and 7 percent, enough to slow the booming housing market.
"So far this year, fixed-rate mortgages have risen only slightly," said Frank Nothaft, chief economist at Freddie Mac. "Long-term rates are only marginally higher than they were two months ago."
Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing a home mortgage, averaged 5.91 percent this week, up from 5.83 percent last week.
One-year adjustable rate mortgages increased to 5.36 percent this week, compared with 5.34 percent last week.
Rates on five-year hybrid adjustable rate mortgages rose to 5.95 percent this week, up from 5.89 percent last week.
The mortgages rates do not include add-on fees known as points. The one-year ARM carried a nationwide average fee of 0.7 point last week while the other three categories carried an average fee of 0.5 point.
A year ago, 30-year mortgages averaged 5.62 percent, 15-year mortgages stood at 5.14 percent, one-year adjustable-rate mortgages were at 4.15 percent and five-year hybrid adjustable rate mortgages averaged 5.05 percent.
Source: Arizona Republic / azcentral.com
Until next time,
Anthony
www.AnthonyKirlew.com
Do you have a Will? If not, you might want to check out Pre Paid Legal Services. For as low as $17 per month, you can have legal protection, and also have your Will drafted at no additional cost (a $500-800 value). Click here for more details: www.AnthonyKirlew.com/LEGAL or call me at 1-800-453-9290.
WASHINGTON - Rates on 30-year mortgages edged up for a fourth straight week, rising to the highest level in two months, Freddie Mac reported Thursday.
The giant mortgage company said its nationwide survey showed that rates on 30-year mortgages rose to 6.28 percent, up from 6.24 percent last week.
It was the fourth consecutive increase and left the 30-year mortgage at the highest level since it stood at 6.30 percent the week of Dec. 15. Rates on 30-year mortgages had dropped as low as 6.10 percent in mid-January before beginning their latest increase. Economists believe the path of mortgage rates this year will be heavily influenced by what the Federal Reserve does with the short-term interest rates that it controls.
New Federal Reserve Chairman Ben Bernanke in congressional testimony on Thursday left the door open for further rate hikes and many economists believe the Fed will raise rates at least once more at its March 28 meeting and possibly at a May 10 meeting as well.
Private economists are predicting that the 30-year mortgage by the end of this year will have risen to between 6.5 percent and 7 percent, enough to slow the booming housing market.
"So far this year, fixed-rate mortgages have risen only slightly," said Frank Nothaft, chief economist at Freddie Mac. "Long-term rates are only marginally higher than they were two months ago."
Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing a home mortgage, averaged 5.91 percent this week, up from 5.83 percent last week.
One-year adjustable rate mortgages increased to 5.36 percent this week, compared with 5.34 percent last week.
Rates on five-year hybrid adjustable rate mortgages rose to 5.95 percent this week, up from 5.89 percent last week.
The mortgages rates do not include add-on fees known as points. The one-year ARM carried a nationwide average fee of 0.7 point last week while the other three categories carried an average fee of 0.5 point.
A year ago, 30-year mortgages averaged 5.62 percent, 15-year mortgages stood at 5.14 percent, one-year adjustable-rate mortgages were at 4.15 percent and five-year hybrid adjustable rate mortgages averaged 5.05 percent.
Source: Arizona Republic / azcentral.com
Until next time,
Anthony
www.AnthonyKirlew.com
Do you have a Will? If not, you might want to check out Pre Paid Legal Services. For as low as $17 per month, you can have legal protection, and also have your Will drafted at no additional cost (a $500-800 value). Click here for more details: www.AnthonyKirlew.com/LEGAL or call me at 1-800-453-9290.
Tuesday, February 14, 2006
$400,000 mortgage for only $1,468 per month!
I hate seeing headlines like this because they are deceptive to the average consumer. I get calls from customers all the time asking about programs such as this.
These are mortgages known as "Payment Option" loans and usually have 4 payment options: a minimum payment (negative amortizing), an interest only payment, a 15 year amortized payment, and a 30 year amortized payment.
The interest only, and 15/30 year amortized payments should be self explanatory. Let's focus on the "minimum payment" option which gets us this super low payment.
The minimum payment rate is a very low rate such as 1.95% (to give you a payment of $1,468 on a loan amount of $400,000). What you need to know is that the "payment rate" is not the "interest rate". The interest rate (in this market) will always be higher, resulting in "negative amortization". This essentially means that every month that you make the minimum payment, your mortgage balance will increase.
Why would someone want to do this? I have done these for clients in certain situations such as:
- In a divorce situation, where both parties used to pay the mortgage, and the remaining spouse has to now pay the mortgage. In some cases, it is financially easier for them to use the equity to pay the difference every month.
- For someone with children in college (or multiple children in college) where the outlay of cash is significant for a few years, and they want some payment relief until the college payments are finished. This essentially uses the equity to fund the college, by allowing the mortgage balance to increase while paying the college bills.
- For someone in their retirement years, where they want to reduce their payments, but don't want to use a reverse mortgage.
I hope this answers this question. If you have any mortgage related questions, please feel free to contact me via email at anthony@anthonykirlew.com or 1-800-453-9290 (24 hour voice mail).
Happy Valentine's Day!
Anthony Kirlew
www.AnthonyKirlew.com
Need to sell your home? Visit: http://www.fsbotherapist.com/fsbohelp.html for more info.
These are mortgages known as "Payment Option" loans and usually have 4 payment options: a minimum payment (negative amortizing), an interest only payment, a 15 year amortized payment, and a 30 year amortized payment.
The interest only, and 15/30 year amortized payments should be self explanatory. Let's focus on the "minimum payment" option which gets us this super low payment.
The minimum payment rate is a very low rate such as 1.95% (to give you a payment of $1,468 on a loan amount of $400,000). What you need to know is that the "payment rate" is not the "interest rate". The interest rate (in this market) will always be higher, resulting in "negative amortization". This essentially means that every month that you make the minimum payment, your mortgage balance will increase.
Why would someone want to do this? I have done these for clients in certain situations such as:
- In a divorce situation, where both parties used to pay the mortgage, and the remaining spouse has to now pay the mortgage. In some cases, it is financially easier for them to use the equity to pay the difference every month.
- For someone with children in college (or multiple children in college) where the outlay of cash is significant for a few years, and they want some payment relief until the college payments are finished. This essentially uses the equity to fund the college, by allowing the mortgage balance to increase while paying the college bills.
- For someone in their retirement years, where they want to reduce their payments, but don't want to use a reverse mortgage.
I hope this answers this question. If you have any mortgage related questions, please feel free to contact me via email at anthony@anthonykirlew.com or 1-800-453-9290 (24 hour voice mail).
Happy Valentine's Day!
Anthony Kirlew
www.AnthonyKirlew.com
Need to sell your home? Visit: http://www.fsbotherapist.com/fsbohelp.html for more info.
Thursday, February 09, 2006
I performed my first colonoscopy...
Fortunately the patient wasn't alive... it wasn't even a human.
Have you ever wondered why your vacuum cleaner isn't working like it should? You roll it over "visible objects", and they just stay there. This happened to me, and I had to do a bit of probing, but what I found was that the tube which connects the "floor surface component" with the actual suction unit / bag combo, was clogged, and mostly with carpet fibers that had built up. This is a common occurrence with newer carpets, so it is something to look out for.
I ended up taking the tube off of each end, and since I was not able to manually pull all of the fibers out, I had to find a "tool", to do the job. In my case, it was the shaft of a music stand (hey, it's practical). I imagine anything long enough to fit through most of the tube (when compressed), will work. After cleaning the tube, the vacuum worked flawlessly.
A few other things to look at if your vacuum is not working would be to make sure the band is not broken, and to make sure the bag is not full.
I hope you enjoyed this helpful household tip. Feel free to pass this along to anyone who wants to become a (vacuum) doctor.
Have a great day!
Anthony
www.AnthonyKirlew.com
Have you ever wondered why your vacuum cleaner isn't working like it should? You roll it over "visible objects", and they just stay there. This happened to me, and I had to do a bit of probing, but what I found was that the tube which connects the "floor surface component" with the actual suction unit / bag combo, was clogged, and mostly with carpet fibers that had built up. This is a common occurrence with newer carpets, so it is something to look out for.
I ended up taking the tube off of each end, and since I was not able to manually pull all of the fibers out, I had to find a "tool", to do the job. In my case, it was the shaft of a music stand (hey, it's practical). I imagine anything long enough to fit through most of the tube (when compressed), will work. After cleaning the tube, the vacuum worked flawlessly.
A few other things to look at if your vacuum is not working would be to make sure the band is not broken, and to make sure the bag is not full.
I hope you enjoyed this helpful household tip. Feel free to pass this along to anyone who wants to become a (vacuum) doctor.
Have a great day!
Anthony
www.AnthonyKirlew.com
Tuesday, February 07, 2006
Identity Theft - Are you protected?
I don't think a day goes by where we don't read about, or hear about Identity Theft. As a mortgage lender, I see many credit reports in a given week, and sadly, I have seen several credit profiles where customers had experienced ID Theft resulting in problems for these unsuspecting customers.
There is a service called, Identity Theft Shield, offered by Kroll Background America and sold by Pre Paid Legal Services, that can help you have protection against ID Theft.
With the Identity Theft Shield, you get a free copy of your credit report (you should look at your credit report at least annually), credit monitoring (you are notified of inquiries into your credit files), and (the most important) credit RESTORATION. This is the only company that offers credit restoration as a benefit of an ID Theft program. The programs sold by your credit card companies only protect the card company really, but with Identity Theft Shield, ALL areas of your Identity are protected including:
- consumer credit
- driving records
- healthcare records
- police records
- any means of Identity that can be used against you.
Wouldn't you rather have piece of mind knowing that you will not be accused of a crime you didn't commit, be turned down for insurance for a health problem that you don't have, or be denied credit, or charged higher than normal rates because someone has maliciously used your credit?
Apply online and receive full coverage for yourself (and spouse if applicable).
Until next time,
Anthony
www.AnthonyKirlew.com
www.AnthonyKirlew.com/IDTheft
There is a service called, Identity Theft Shield, offered by Kroll Background America and sold by Pre Paid Legal Services, that can help you have protection against ID Theft.
With the Identity Theft Shield, you get a free copy of your credit report (you should look at your credit report at least annually), credit monitoring (you are notified of inquiries into your credit files), and (the most important) credit RESTORATION. This is the only company that offers credit restoration as a benefit of an ID Theft program. The programs sold by your credit card companies only protect the card company really, but with Identity Theft Shield, ALL areas of your Identity are protected including:
- consumer credit
- driving records
- healthcare records
- police records
- any means of Identity that can be used against you.
Wouldn't you rather have piece of mind knowing that you will not be accused of a crime you didn't commit, be turned down for insurance for a health problem that you don't have, or be denied credit, or charged higher than normal rates because someone has maliciously used your credit?
Apply online and receive full coverage for yourself (and spouse if applicable).
Until next time,
Anthony
www.AnthonyKirlew.com
www.AnthonyKirlew.com/IDTheft
Friday, February 03, 2006
Is it too late to refinance?
I still have customer inquire about refinances at least once a week, if not more. The reality is that although the days of fixed interest rates in the 5% range are long gone, rates are still historically low.
To determine whether or not a refinance is appropriate for you, there are a few factors to look at:
1. Do you have a Home Equity Loan that keeps increasing as the Prime has? This affects a lot of people as the prime is now at 7.5% (thank you Mr. Greenspan).
2. Is your rate at least one percent higher that the current rate?
3. Will taking cash out of your home reduce your debt load? (it will certainly increase your mortgage tax deduction if you increase your mortgage)
4. What is your mortgage balance? A lower rate on a smaller mortgage may not be the best move.
5. Are you in a Chapter 13 bankruptcy, and want to pay it off?
These are just a few scenarios and every client has a unique circumstance. Call me to discuss your situation and discuss a mortgage solution. I can be reached via 24 hour voice mail at 1-800-453-9290.
Have a great weekend!
Anthony
To determine whether or not a refinance is appropriate for you, there are a few factors to look at:
1. Do you have a Home Equity Loan that keeps increasing as the Prime has? This affects a lot of people as the prime is now at 7.5% (thank you Mr. Greenspan).
2. Is your rate at least one percent higher that the current rate?
3. Will taking cash out of your home reduce your debt load? (it will certainly increase your mortgage tax deduction if you increase your mortgage)
4. What is your mortgage balance? A lower rate on a smaller mortgage may not be the best move.
5. Are you in a Chapter 13 bankruptcy, and want to pay it off?
These are just a few scenarios and every client has a unique circumstance. Call me to discuss your situation and discuss a mortgage solution. I can be reached via 24 hour voice mail at 1-800-453-9290.
Have a great weekend!
Anthony
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