I’m sure you’ve noticed many recent headlines about mortgage fraud, mortgage lender “misdeeds” and even arrests. It seems it’s in the newspapers, on television, and on line. Even links are presented on Facebook and Twitter informing of the issues this country currently faces. If you haven’t been aware of these issues, here are a few examples to bring you up to speed:
Defendants Arraigned in Suffolk County Mortgage Fraud
Two Indicted in Mortgage Fraud Scheme
Arrests Made in Alleged Orange County Loan Mod Scam
After Audit, HUD Office Files Charges Against Georgia Lender
N.J. Lender Subpoenaed by HUD, Stops Funding
So why would a mortgage lender bring this up? Because we believe it makes sense to do your due diligence when preparing to sign a contract – a contract/loan that will most likely be the largest investment you’ll ever make.
If you’re considering purchasing a new or refinancing your current home, we encourage you to do your homework. The same goes for any other type of transaction that includes your residence (home equity, reverse mortgage, etc.). Check out the mortgage company. Ask friends and neighbors for referrals. “Interview” a few before making your decision.
And when you’re ready for that next loan, we’ll be happy to assist you. Honestly, ethically and in your best interest.
Saving, spending and giving
Since I am in the “mortgage business“, I often find myself in discussions regarding money. Credit scores, interest rates, payment plans, investments … the list goes on. There are so many variables, so many issues, so many person-specific “things” that we all need professionals to guide us when making high-dollar decisions. I am grateful for the opportunity to serve as one of those advisors.
But not all money topics are complicated. I’d like to introduce you to a very simple book, titled Three Cups. This book was developed by Tony Townsley, a gentleman from our Parish at Saint Maria Goretti. He presents the importance of having 3 cups and using each of those cups for saving, spending and giving.
My son, who is in 4th grade, and I are using Three Cups which was given to him at school at the beginning of Lent. The book has provided a great way for us to go through Lent and to talk about the importance of sharing our gifts with others, saving for our future and spending wisely on our needs today. It has also given my son and me a focal point for discussions about the money he receives on birthdays, for chores and so on. I would recommend this book as a great tool that can help all of us live and teach our faith … with our wallets.
Visit the website to learn more about Three Cups and to read others’ stories how they’ve used the book as a roadmap for teaching financial responsibility.
Further declines in home prices expected
With housing prices and interest rates down, many people are wondering if now is a good time to be a first-time home buyer or upgrade to a “better” home. The tax advantages are certainly one reason to consider purchasing now.
Looking at the housing market, First American CoreLogic and its LoanPerformance Home Price Index states that further declines in home prices, driven by distressed sales, are expected in the early months of 2010. This will be followed by a recovery this spring, but that is now projected to be much smaller and to occur later than previous forecasts stated.
If your’re thinking of upgrading, be sure to factor in the fact that your house, along with most others, has also declined in value. Though you might get a “great deal” on the one you want to purchase, the person buying yours is probably also getting a “great deal” as well.
Besides the cost of the house, the mortgage interest rate is another factor to consider. According to a recent Freddie Mac Primary Mortgage Market Survey, the rates are currently around 5%. These rates are quite inviting. Just to provide a comparison, during the inflationary times in the 70’s, mortgage rates were in the low teens. It wasn’t unusual for people to pay 13%!
This could be the right time for your to make your move. Consider all the issues – tax incentives, interest rate and the declining values in the housing market. Talk to a trusted mortgage professional; they will help you sort through all the issues and guide you on this major financial decision.
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