Archive for the 'Julie's Mortgage Tips' Category
New Orleans Mortgage Tips! Credit Scores are more Important than ever.
August 20th, 2009 categories: Julie's Mortgage Tips
Last week I was talking to one of my favorite Lenders Julie Baudier of Standard Mortgage about the quality of borrowers that she is getting. Many buyers cannot buy because they have low credit scores. Most loans now require higher credit scores. They are requiring more on FHA loans as well. So if you are in the thinking process now is the time to check your score and learn the ways you can improve your score.
The two main points are that your scores can be raised and they need to be checked every now and then. You need to have them checked on a regular basis as the credit agency’s make mistakes. Its easy to put things on but not so easy to take them off. Do not wait until you want to buy to get started. Starting earlier is better.
Tips to improve your FICO score: Increasing your FICO score may take time and often there is no quick fix. FICO scores reflect credit payment patterns over time with more of an emphasis on recently reported information that older information. · Pay off your bills on time. Delinquent payments, even if only a few days late, and collections can have a major negative impact on your FICO score. · If you have missed payments, get current and stay current. The longer you pay your bills on time after being late, the more your fico score should increase. Older credit problems count for less, so poor credit performance won’t haunt you forever. The impact of past credit problems on your FICO score fades as time passes and as recent good payment patterns show up on your credit report. And good FICO scores weigh any credit problems against the positive information that says you’re managing your credit well. · Keep balances low on credit cards and other “revolving credit”. High outstanding credit card debt can negatively impact your FICO score.
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Using a local lender can save you a lot of headaches!
July 19th, 2009 categories: Condo Knowledge, Julie's Mortgage Tips
Using a local lender that has a local back office can save you a lot of money, time and aggravation. Having the entire process local makes the people much more accountable to you and your needs. They have to deal with us on a local basis. They are just more accountable plus they are often time the most cost effective way to finance.
Making the call to an unknown person in Dallas or Atlanta is much like talking to the IRS, they just do not want to be bothered. The decisions are last minute. They do not understand our our local market and issues.
The interest rates are generally going to be the same or better. The cost are also gnerally going to be cheaper as well. Always ask for a good faith estimate to check out the cost. Ask if they have a lock in period and if the rates drops can you take advantage of the lower rates.
If your lender is late you may just blow the deal. Many sellers will wait for the loan but they do not have to wait. There are times when they will move to the next person or deal.
Ask around to see who has received good service and who has not. The out of town lenders can cause big problems. We will never hear from them again so the incentive to be crediable is long removed. This happens time and time again. That is why I am bringing it up. Tired of last minute suprises. We as agents have our favorite lenders becuse they get the job done for us and give our clients the attention the deserve.
It is especially true with condos to get the local person who knows the various condo associations and knows how to get the imformation they need. More and more deals are falling apart because the lender does not know the market. Just my point of View ! Eric
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The FHA loan, what are the Advantages in today’s Market?
June 19th, 2009 categories: Condo Knowledge, Julie's Mortgage Tips
The New Orleans real estate market has come alive in the last 4-5 weeks. Interest rates are still good closing at 5.5% today. One of the things I have learned in the last two to three months is the value of the FHA loan when it comes to condos and homes. There are several advantages which I will touch on briefly so you can get some ideas. It may save you thousands.
You still may be eligible for the $8000 tax credit that ends this November so check this out as well. Real Estate season started late this year but is now in full swing.
- The downpayment is 3.5% for an FHA loan where as Conventional financing is at least 10% and more. This has to be your primary home.
- The credit scores are relaxed and you do not pay extra for a loan if you have average credit as you may have to do with a conventional loan.
- The Mortgage Insurance is almost half of what a conventional mortgage is at this time. This is an insurance premium you will pay if you put less than 50% down. On a $200,000 loan the FHA fee is about $110 per month with the 3.5% down.
- The seller can give you up to 6% of the loan amount in concessions. For a condo this is going to be much less since insurances are in the condo fees. This will also help you pay for the FHA upfront insurance fee along with your other closing cost. This means you can get in for 3.5% if we figure the numbers correctly. This means if you borrow 200k, they you need $7500 of your own money.
The one big issue is weather the condo association can be financed by being on the FHA condo list or by doing a spot approval. Please chose a local lender as they will be far more knowledgeable than an out of town person. An agent can help you with the questionnaire to see if the condo may pass the requirements before starting.
Its always better to know that you will have a high probability of success. This is where a knowledgeable condo agent and lender are very valuable. Here is the questions that are asked to condo association to determine if you can do a spot approval. Spot Approval Process.
There are some very good lenders but there is a special one in Jeff Bollinger ” The FHA Expert ” is one who is an FHA expert in my eyes. He has a weekly blog that can answer many of your questions just by reading his thoughts and many comparisons he makes. A true expert indeed. This is where I go to look for answers when I need to have a question answered. He is not local but has the answers for everyone to read and think about.
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New Orleans Interest Rates Drop to New Lows! 4.6% What does that mean to you?
March 20th, 2009 categories: Julie's Mortgage Tips
The market is telling us we need more buyers to buy homes and condos. The rates plus willing sellers is making for some nice deals. You should also be thinking about refinancing possibilities if you plan to stay for two years as the payoff is quite nice. Here are some numbers. You save a lot per month. In two years at 200k you will save $4224 which is much more than the cost to refinance. Refinance Article Earlier on Cost of new loan.
Per 100k of loan your payment of principal and interest at 6% was $600 per month.
Now, at 4.6 % its dropped to $512 per 100k of loan, you save $88 per month
100k-save 88, 200k save $176, 300k save 284 per month
As a buyer your money is just going to go further these days. People with good credit are in the drivers seat as buyers. These low rates will last for a period of time. Then with the government spending over a trillion dollars per year more than they take in the cost of money will rise. I just cannot tell you when its going to happen but know it will happen.
There are a number of developers who need to clear their books of properties that are new or almost new in some great price ranges in Uptown New Orleans. Part of their problem is the slow market and the facts that people cannot get loans for new projects using conventional loans. This this adds to some very nice units that I have not seen before at these prices. There are not massive amounts but they are out there. Check it out!
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Jefferson Parish Grant Money for first time home buyers! Great way to start!
February 17th, 2009 categories: Grants and Incentives, Julie's Mortgage Tips
Jefferson Parish has several programs that can help you as a first time buyer for a home or condo. You have to be able to qualify for a loan and meet the income requirements. The purchase price has to be below $200,160. You start by getting qualfied for a loan through an approved lender. This will let you know what you can afford and if your credit score is sufficient for a loan. The loan itself can be FHA, VA, or Conventional. Call Julie Baudier at Standard Mortgage to get you started with the loan process 504-583-1793. This is your first step.
The home or condo has to be in good shape and should not need major repairs. Then you call the Jefferson Parish Community Developement Office. They will give you information on the classes and a certificate to get started.
A Real Estate Agent like Eric can then help you in selecting a property. Its well worth the time and effort as its a big, big help in getting started towards home ownership.
As per the Jefferson Parish Website ”The HOME Program funds assist first-time homebuyers in purchasing their homes by subsidizing closing costs and/or down-payment requirements in conjunction with loans obtained through the Jefferson Parish Finance Authority or other qualified lenders.
Qualified applicants may receive a level of assistance up to $50,000 determined by Community Development to be applied for the down-payment and normal closing costs. Participants will be required to grant a mortgage to the Parish in the amount of the assistance provided. This mortgage will be for a term determined by the amount of money received, non-interest bearing, and will be non-repayable if certain conditions are met. Eligible participants purchasing homes in the City of Kenner will receive a $10,000 grant secured by a deferred mortgage of 10 years.
Eligibility
Eligible participants include households that have not owned a home during the past three years. The annual maximum allowable household income limits, based on family size, are as follows. The annual income of a family of four cannot exceed $47,850.
1 - $33,500 2 - $38,300 3 - $43,050 4 - $47,850
5 - $51,700 6 - $55,500 7 - $59,350 8 - $63,150
Applicant Requirements
Applicants are required to complete a Preliminary Application with supporting documentation before being funding will be considered.
Applicants are required to attend two classes and must present an acceptable certificate of training completion before loan closing.
The monthly payment required to service the contemplated mortgage(s) may not exceed 30% of the monthly household income.”
You should also be able to get a federal tax credit as well if you buy by the end of the 2009 of $8,000.
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New Orleans Condo Buyers can get tax a credit of $8,000, something for Free !
February 16th, 2009 categories: Grants and Incentives, Julie's Mortgage Tips
Congress had a great opportunity to really jump start the housing market with a $15,000 tax credit open to everyone and anyone. Its hard to believe they thought it would cost too much. This move could have saved people tons of money and would have helped us with the bank bailout. Any incentive to increase demand is welcome.
I would have made it very simple and open to everyone buying a home or condo. Why put all these strings attached when we need to increase demand. It would lighten the load on sellers and banks costing American less in the long run. Incentives do work and when we need immediate spending this is the fastest way to make it happen. Much less than the bailout of Citi Bank alone by 10’s of billions. Where are the Nation’s thinkers?
However if you fall into this niche its something to take advantage of. Its like free money along with the tax advantages of owning.
“The good news is that there is an $8000 tax credit available for first time home-buyers! On Friday, both the House and the Senate passed the American Recovery and Reinvestment Act of 2009 and President Obama is expected to sign it into law early next week.
$8000 tax credit highlights include:
- The $8000 tax credit is available only to first-time home buyers, no purchase in last 3 years.
- The $8000 tax credit is available only when the first-time home buyers buy a primary residence
- The $8000 tax credit is available only to first-time home buyers buying a primary residence between January 1, 2009 and December 1, 2009
- The $8000 tax credit does not require repayment after 3 years.
- The $8000 tax credit is claimed on a tax return and reduces the tax liability. If the credit is more than the tax liability, the unused credit will be issued as a check to the person claiming the credit
- If you sell the home within 3 years, the entire $8000 tax credit is recaptured
- Income limits of $75,000 for one and $150,000 for a couple.
For those of you who have been asking questions about the possible tax credit - the good news is that we now know what has been passed into law.
What this legislation should do is encourage first time home-buyers to buy a condo or home. What it will probably not do is encourage everyone who isn’t a first time home-buyer to buy a home.
And it remains to be seen exactly how much it will help the overall real estate market turn around.”
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Financing New Orleans Condo’s as a 2nd Home
January 18th, 2009 categories: Julie's Mortgage Tips, Second Homes
Rents in the Uptown New Orleans and the New Orleans Warehouse District are $1200- $1800 monthly. Instead of paying rent for the next four years college students parents can buy a condo as a 2nd home and reap the benefits. Some parents will be able to use the interest paid on the 2 nd home to lower their tax obligation. Buying in today’s market while values are down should equal appreciation 3- 4 years from now. Rates are at an all time low and its nice to be able to take advantage of it. 2 nd home rates are as low as your primary residence rates. For more information feel free to give me a call. — Julie Baudier
Julie has helped me on many occasions to run the numbers and give you ideas on the notes, taxes and tax savings ideas of owning. Many people will buy a condo for their kids to stay in while in school and keep it as a second home after graduation. Once the kids are gone it is like finding gold in your yard until they come back home. But then its much cheaper as they are just visiting ! Kids are wonderful but can get expensive.
Check out the Rent versus Buying analysis.
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New Orleans Condo Search, Your credit scores do matter when applying for a loan!
January 17th, 2009 categories: Condo Knowledge, Julie's Mortgage Tips
Banks and lenders have been increasing the scores needed to get the best rates on loans in 2009. The lower credit scores will make the loan more expensive via a higher rate and or higher charges. If your score is below the threshold you may not be able to get a loan at today’s lower rates.
This means it a great idea to check your credit score out while you are still in the early stages. A higher percentage of credit scores are wrong than you would think, so checked out early and get it fixed. There are ways to make your credit score go up by reviewing your open lines of credits and mistakes which may not be yours.
The best way to see a drop in your score is not to pay your bills on time. You may be a nice person but this does not count with credit scores.
I would have your future lender pull your scores and go over them very, very early in the process so you will not have any surprises.
I had a client who had great credit until someone opened up various lines of credit for him while he was busy working hard off shore. He had no idea as the bills were sent to a vacant lot. He then found loans, bank accounts, and bills he knew nothing about that had been set up under his name. The story ended quickly when the client could not buy anything for least 6 months while he cleared it up. It may not be this major but all the points count.
I had the opportunity to talk to Robert Tynes a loan officer with Whitney Bank in Metairie this past week. He gave me some of the basics: Your credit score and the down-payment are very important in figuring your interest rate. The rules are changing rapidly as to who will get the lower rates that are now being advertised.
Scores of 740 or more will get the best rates and will have no extra charges. The bottom scores for a conventional loan are in the 620 range with a decent down payment. The interest rates become a sliding scale from 620 to 740 as to an increase in rates. He also said the rules are changing rapidly so you need to keep updated and start the process early.
He is doing more FHA loans as the scores are in the 580-600 for the one rates for FHA loans. The down payment is around 3% which is a big help if you do not have a lot for a down payment. With this loan the seller can also help you with your closing cost to a certain degree. Gets complicated but that is why getting the loan process started early is more important than ever. Shopping rates is not easy when you do not know where you stand. Just be aware that many quotes are just teasers to get you in or to call.
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New Orleans Interest Rates fall to lowest level in 37 years, Time to refinance? Get out you calulator ! Save some Money
December 19th, 2008 categories: Condo Knowledge, Julie's Mortgage Tips
It is certainly time to think about saving money by refinancing your loan on your New Orleans condo. Especially if you plan on owning it for more than a couple of years. The cost to refinance your loan on a 200k mortgage for a condo is about two thousand dollars. The only variable is the title Insurance which varies with the amount of the loan. Make sure you keep your title policy as the reissue rate is a big savings. Its is well worth looking into the numbers. Your condo fees and taxes stay the same.
Lets look at some numbers. If your current rate is 6.25% and you can get 4.75% then your monthly payment per 100k drops from $616 to $521 which saves you $95 per month. This is principal and interest. On a 200k loan your savings would double to about $200 per month. That is $2400 per year which is over the break even point for the closing cost associated with the lower rates. So if you are planning on staying in New Orleans its money in your pocket.
There is no way to know how long these rates will be around but have a feeling it may be a couple of months before heading up again. If you are buying this gives you a larger budget to spend or a much cheaper note. There is still available those seasonal discounts that will be going away once everyone figures this out.
Feel free to call Julie Baudier 504-583-1793 and ask her what you need to do and how it will benefit you. Its not always that easy to get $200 more in your pocket by making a call. If your rate is higher then you save more. You must have good credit, but 95% of my buyers have had excellent over the past 3 years had great credit in my condo markets. Out of last 200 sales I had one sub-prime loan and only a couple of adjustable loans.
The other odd thing when you do the number is with the lower rate of 4.75% your principal is getting paid down $126 per month. At the 6.25% rate the principal is being lowered by only $95 in the first months. I had to do this several times to be a believer. This means you are building equity faster at a lower rate as less goes to interest in the beginning. An equity bonus so to speak!
If you are currently renting then take a look at the rent versus buy numbers and it pushes buying in your favor. Rent Versus Buying, New Orleans Buyers Agent
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Finanacing New Orleans condo’s as a 2nd Home! Rates are very good!
December 14th, 2008 categories: Julie's Mortgage Tips
Rents in the New Orleans Uptown and Warehouse District are approximately $1200-$1800 monthly. Instead of paying rent for the next four years college students parents can buy a condo as a 2nd home and reap the benefits. Some parents will be able to use the interest paid on a 2nd home to lower their tax obligation.
Buying in todays market while values are down should equal appreciation 3-4 years form now. Rates are a an all time low and its nice to be able to take advantage of it. 2nd home rates are as low as your primary residence rates. For more information please give me a call. Julie Baudier 504-583-1793
Julie is correct about the second home market and the deductions and enjoyment that can be had with a second home. I sell several condos a year where people will have a condo as second home and also make it a home for their kids while in school. Having the second homes have had a positive effect giving the market more buyers than other markets.
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