The Story Behind G-Fees

The good news is the payroll tax cut was extended in December of last year. So people who earned up to $106,800 kept their 2% tax reduction. Nothing wrong so far. But exactly how is the government going to pay for it? That’s the bad news.

The government decided to make Freddie Mac and Fannie Mae increase their fees, which means, of course home buyers and those who refinance will foot the bill. We’re not sure how they figured this was fair but why ask why?

“G-Fees” (for guarantee fee) help lower risk for Freddie and Fannie which allows them to keep rates low and lend to more people.

The new increased fees will not help.

The new increased fees will be passed along in the form of higher rates. It’s impossible to predict how much rates will increase but it could be as much as an eighth of a point in rate. Ouch!

The increased G-Fees officially go into effect April 1st, 2012 but you may see the increases sooner than that as investors begin to price it in. We think this is just another reason buyers need to get going now!

Please call or email us today regarding G-Fees or any other mortgage finance questions!

Ever-changing is something we have become very accustomed to in the mortgage industry.  Guidelines change, programs go away, new programs appear…everything is always changing.

One of our most recent changes is the FHA Scorecard.

When you hear the word ‘Scorecard’, exactly what comes to mind?   For me…I immediately revert back to school and think about grades, report cards and the like…

Well, that is very similar to what this FHA Scorecard is like.  It has been designed to gauge the risk of all loans submitted to an automated underwriting  program.

By using the FHA Scorecard things like:

• making sure applicants are subject to the exact same ‘scoring’ guidelines no matter which automated underwriting system was used to approve their application.
• the FHA Scorecard will allow FHA to analyze all data submitted which will allow monitoring of trends and allow for changes which will limit risk.
• the FHA Scorecard will also allow for borrowers who may not have been automatically ‘approved’ via the automated system to have the opportunity to have a their loan manually underwritten.

There are many details to this that can be very overwhelming and potentially confusing.  The simple basics have been mentioned above.

If you have questions about the FHA Scorecard, call us today.

What is your perspective on today’s housing market?

Talk to a Realtor or do some reasearch about today’s housing market.

Given our economy and the fact that the media rarely seems to report any good news, most of us perceive that the housing market is not ideal.  I suppose it isn’t ‘IDEAL’ but it is still good, homes are very affordable today.  Given the barrage of negativity, it is very easy to over look the positive.

Some say that housing is more affordable than it has been in over two decades.  Seems crazy to think about that doesn’t it?  I suppose it depends on your outlook – is your outlook half full or half empty?

Even though housing is affordable – Financing can still be difficult.  If you haven’t looked at buying a home in the past few years, maybe it is time to seek out a lender who can help you get into position to purchase since houses are so affordable and rates are low.  There are programs that help those who have lower credit scores &/or lower income.  As the matter of fact some of those programs have income limits which means that you cannot make too much money in order to take advantage of the program!

Please call us today to see if we can help you qualify for a home loan and take advantage of the housing market!

What does Success mean to you?

We have all felt the sting of failure and the joy of success at some point in our life.
The real question is what is success?  Everyone has a different answer to that question.

What  is your opinion about successful people in general?  Have you wondered why they are successful and how they continue their success?  Have you wondered why you find certain people successful and not others?  Society tells us most frequently that money = success.  But does it?

Statistically, successful people consistently reach their maximum potential.  CONSISTENTLY.

Here are some thoughts after reading through a few articles about traits of successful people.

• They set measurable goals
• They focus on productivity
• They make informed decisions
• They take action and they take RISK
• They avoid perfection
• They subscribe to K.I.S.S (Keep It Simple Stupid)
• They are open to change and are consistently trying to improve, even in the smallest of areas
• They learn from their mistakes
• They surround themselves with a strong support team

Back to the question of what is success?  If success for you is owning a home, how will you achieve that?  We look forward to the opportunity to help you through the process of becoming a home owner.

Simply put, Success is the achievement of something desired.

Define what you desire, implement a strategy and you will be on your way.

SMART GOALS = SUCCESS

Consider Buying a a property in Boise

Currently the housing inventory here is fairly low so buying a property in Boise can seem difficult at times.  Getting pre-approved for a loan and using an aggressive Realtor can help the expedite the process once you find a home that appeals to you.

Make sure that you have looked at all of the loan options and have chosen the loan that is best suited to your needs; also remember that when buying a property in Boise you may come across properties that may appeal to you that were not considered “ideal” initially.

When Buying a Property in Boise get advice from those who know the market well!

Use a lender that has access to all of the loan programs that you could qualify for, understand the different fees associated with each loan type and understand the intricacies of each program.  I.e. did you know that if you are a first time home buyer and you take advantage of the Idaho Housing Association program that you cannot make that home a rental if you decide you want  to purchase another primary residence down the road?

It is really important to discuss your long-term goals with your lender and make sure that if you are buying a Property in Boise that you get the loan best suited for you.

If you are considering buying a home  you should know which loan programs are available to you.  You have options depending on whether you are buying a primary residence or an investment property.  Call us today to find out what you might eligible for.

Your options could include FHA, VA, Rural Development, Conventional &/or Idaho Housing.
It is important to know which of these loan programs you are eligible for and the differences.

FHA — Is a federal loan program that is a good fit for first time home buyers.  It allows for gift funds as well as lower credit scores when qualifying.  It also allows for non-occupying co-borrowers to help with qualifying.

VA — this is specifically for veterans of the military.  It is typically the most beneficial of all of the loan programs for any military personnel.

Rural Development — this is one of the loan programs that is suited for lower-income families who want to buy in a very specific area.

Conventional — this is probably the most flexible of all of the loan programs.  It allows for all occupancy types and is generally more flexible when property conditions are a factor.

Idaho Housing — This is an assistance program that works beside government loan programs to help Idahoans.

Finding a great lender who can show you the differences between the loan programs and helping you determine which one is best suited to your needs is important.

Each of these loan programs has specific differences that you need to understand so please call us today.

One of the first steps to take if you are considering buying a home in Boise Idaho is meeting with your lender.  If you do not have a lender, please give us a call.  Right now the inventory of homes for sale in Boise appears to be very low; if you find a home you like you will need to make an offer quickly.  In order to do that, you need to be pre-approved for a home loan and your Realtor needs to have your pre-approval letter to submit with your offer.

There are benefits to buying a Home in Boise.

Properties seem to be slightly undervalued right now, so it is a great time to make an offer on a Home in Boise.  You will get a good deal if you can secure an offer.  Making the decision to buy a home in Boise whether for investment or for your family is a good decision.  Boise offers many amenities that other communities this size do not.  Boise has great schools, it is safe, getting in and out of Boise for travel is easy, and the list goes on.

Simply put, it is a good investment to buy a home in Boise.

Budgeting can and should be a very simple straightforward process.  Not only that, it can also be very rewarding for the entire family.

Here are a few ideas to help you if your budget is still a work in progress.

• Goals are a key component of a Successful Budget.  Make sure that you are setting personal budget goals as well as family budget goals.
• Determine your income.  Very simple yet most people do not actually know this information.
• Determine your expenses; a must for a Successful Budget.
• Design a spending plan.  Make a list of Wants & a list of Needs.  There is a difference.
• Keep track of your expenses in a detailed manner.  A spreadsheet is great for this because you need to make sure that you are staying within your estimated limitations or you need to adjust your budget accordingly.
• Make sure that you review your spending plan frequently.

Meeting your goals is very important to a Successful Budget.

A Successful Budget will lead you to your financial reality; Success.

Are you a FAN?

Is a Refinance right for you?

If you are considering a refinance, one of the most important questions is…

Why am I contemplating a Refinance?

Most of the time people refinance for one of two reasons, either they want to cash out the equity they have in their home or they want to lower their mortgage interest rate.  If they are lucky they could refinance, take cash out (if needed) and lower their rate.

It is very important to make sure that if you are considering a refinance that you factor in the closing costs.  Determine whether or not you can recoup the costs in an adequate amount of time.  If you need help determining what the costs of refinancing would be or determining the time it would take you to recoup the costs please call Christy today.

If you do plan to take the equity out of your home and use it, be sure to use it wisely.  If you refinance to remodel your home you are essentially making improvements that  increase the value of your home and hopefully your are also increasing your quality of life.  If you are taking the cash out to pay off debt such as credit cards, be sure to take a look at your spending habits before taking the equity out of your house.  You will want to make sure that you won’t re-accumulate that same type of debt.

One other reason to refinance…

Depending on the type of mortgage you have, you may want to consider a refinance even if it doesn’t lower your payment or rate.  If you are in an adjustable rate mortgage you could get put into a bind when your adjustment period begins.  Refinancing into a fixed mortgage can definitely provide you peace of mind.  Be sure to consider all of your options when looking into a refinance and contact us today if you have any questions.

Co-signing for another person could be a very difficult decision for you.  It should be!  When you decide to co-sign you are agreeing to take responsibility for the debt if the primary borrower cannot make the payment.

When Co-signing for a loan consider it your debt, especially when reviewing your budget.

Sometimes co-signer’s are needed when a person is trying to establish credit or re-establish credit.  You may want to help your child purchase a home or a car, co-signing with them could make the difference between getting a loan or not.

Remember, even though you trust the person you are co-signing with everyone’s financial situation is subject to change and neither you nor they may have any control over it.

Keep in mind what happens to your credit when co-signing for a loan as well.  If the person making the payments always makes them on time, it will have a positive impact on your credit.  If for some reason they are making late payments, it will negatively impact your credit.  Sometimes you don’t even get a call from the creditor until it is too late and it has impacted you negatively.

Overall, co-signing for a loan to help a loved one is a good idea just don’t take it lightly.