THE GOOD NEWS IS CATCHING
Posted on April 4, 2008
Filed Under real estate | Leave a Comment
If you review my articles over the last few months you would probably think that I am out of touch. While everyone else is crying, wringing their hands and moaning, I have been very optimistic about the current housing situation. If you look really hard occasionally you will find someone else who gets it. As I have said before I am not crazy. When things are bad for homeowners and sellers, it stands to reason that things are good for buyers. If you want be benefit from the current market the way to do it is to
To to be a buyer click here www.capstone-finance.com/quote.php
be a buyer. I found another article just today that finally is catching on to this(I have included a link and the end of the article). Not to sound like an anti media guy, but if these folks wanted to be helpful they would be telling you to seize this unprecedented opportunity. Once again I will point out that prices and rates are low. This is highly unusual which you will find out one of two ways: either by patting yourself on the back for taking advantage, or by kicking yourself for missing out.
For more info on how to take advantage and be a big winner you can email me at mitch@capstone-finance.com
Read this article:http://realestate.msn.com/Buying/Article2.aspx?cp-documentid=6564920
If this link does not work cut and paste it to your browser.
MORE GOOD NEWS FOR HOME BUYERS
Posted on April 1, 2008
Filed Under Uncategorized | Leave a Comment
I may be the voice of one crying in the wilderness but I am going to continue to point out what an unusually outstanding time this is to buy a home. With the constant drum beat of how bad the real estat market is nervous buyers are really buying the bad news. This is great news if you are buying. We had some interesting numbers last month. Home sales were up 3% in February.
February is a terrible month in much of the country for home sales. However, prices were down. What this means is that sellers are still willing to give away the farm even though demand is up. That will not last long. As we get into the buying season if this increased demand holds prices will rise.If you want the current economic situation to work in your favor, if you want to be a big winner in this now is the time to buy. If you missed out on the Google IPO, don’t miss this equally beneficial opportunity.
To qualify for these products click here www.capstone-finance.com/quote.php
There are a couple of interesting programs to help buyers right now. For example FHA is offering financing on HUD repo houses that requires only $100 down instead of the usual 3%
Second for investors there is a program that will allow you to finance the purchase price and the cost of renovation even for non owner occupied properties. If you want to be in the rental business now is the time. Homes are available money is available and people are thinking rent right now.
For help locating HUD repos go here www.capstone-finance.com/quote.php
IT’S NOT AS BAD AS YOU THINK
Posted on March 14, 2008
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I have noticed something very interesting the last couple of weeks. Here and there if you look really hard you will catch a news story that indicates that the scope of the current mortgage crisis is likely somewhat over blown. I read a great story yesterday on MSN.com. (I have included a link at the bottom of the page) It was basically pointing out that the areas of the country that are experience the real depreciation in home values are the same areas that were experiencing outrageous appreciation over the last 5 years. Much of this appreciation was due to investor speculation. People would by homes or condos while under construction for the sole purpose of selling it before construction was completed for a higher price. This creates and un natural demand. The other point that this article made was that only about 1% of houses are in foreclosure. You often here about the alarming increase in the foreclosure rate. In many areas of the country they had virtually no forclosures two years ago and now 1% of the houses are in foreclosure that may represent a huge increase for that area but number of foreclosures in still very small. The impression is that the sky is falling and we are headed into another great depression. This is simply not the case. While there definately is a problem, we just need to be careful not to be paralyzed by fear. To read the entire article go here:
http://articles.moneycentral.msn.com/Banking/HomeFinancing/ForeclosureCrisisIsOverblown.aspx
I LOVE TO SAY I TOLD YOU SO
Posted on March 14, 2008
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A few days ago I was listening to the news and the president of the Builders Association of Greater Indianapolis was talking. He was of course discussing the current housing market. He was saying that builders we already starting to experience slight price increases and that alot of the excess inventory was being depleted. In December I wrote in this blog an article called “The Next 90 Days”.
To get a loan approval go here www.capstone-finance.com/quote.php
In it I said that the next 90 days would be the best buying opportunity for anyone who is currently renting. It turns out that was exactly right. In my area (Indianapolis) home prices are holding steady. Interest rates hit bottom in January and have continued to rise since that time. So here we are 90 days later and you have likely missed the bottom. If you did not listen to me then listen to me now. This is still a tremendous buying opportunity. Rates are still very good, home prices are steady, and sellers are motivated. There are also still a variety of programs to help people own homes even if you have very little or no money for a down payment. This is the opportunity that you will be kicking yourself over a couple of years from now. Don’t Miss Out!!
HOW TO GET OUT OF AN ADJUSTABLE RATE
Posted on January 25, 2008
Filed Under Mortgage Information | Leave a Comment
If you are like millions of other folks in the USA today you may have an adjustable rate mortgage. Maybe you just took out the loan last year and you have a year left until your rate changes or maybe your rate changes next week. Either way it will be helpful to know your options.
The president along with some industry leaders announced a plan a couple of weeks ago designed to help homeowners save their homes. Basically, if you have made your mortgage payments on time and you look like a squeaky clean risk and you would qualify to refinance anyway the lenders won’t change your rate for a few extra years. Now who do you think benefits most from this? Basically, if you can qualify to refinance your loan to a different lender they will keep your rate fixed for a while longer so you won’t go to someone else. Gee Thanks!!
To refinance for FREE click here:
www.capstone-finance.com/quote.php
First I will give this disclaimer: If you consistently pay your mortgage 30 days or more late and have demonstrated that you can not afford the payment you have, none of this advice will probably help you.
That said if you are facing a dramatic rate change the first thing to do is contact your current lender. If you plead your case that you are making your payments now but if the rate goes up you will not be able to they may offer some relief. Lenders really do not want to foreclose so if they feel confident that the payments will keep coming they are more likely to offer assistance.
For help with this e mail me at
If you live in an area that DOES NOT have declining values(which is most of the country despite what the news says) it may be your best option to shop around for a broker or banker who can help you refinance. You may even qualify for a “streamline refinance” which requires alot less documentation and does not require and appraisal.
What I have been doing is offering no closing cost refinances this allows people to be able to refinance even if they have a pre payment penalty.
To find out more about No Closing Cost Refinances click here:
www.capstone-finance.com/quote.php
How Has The Market Affected Rates
Posted on January 25, 2008
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I am sure you are aware of the recent trends in the stock market. I get a lot of questions every day about how the market works and how it effects mortgages and rates.
30 year mortgage rates are a function of bond prices. They are not a function of the interest rates that the Federal Reserve Sets. We had an interesting scenario this week that causes a lot of confusion for people, but this is what happened. For the last couple of weeks as the market has tanked bond prices have gone up because people are pulling money out of stocks and buying bonds (they are selling stock at the low point just like I told you they do read “Don’t Follow the Herd” and “Stock Tips From a Shoe Shine Boy”) on this site). This activity creates lower mortgage rates. So mortgage rates have been dropping. Then the Federal Reserve comes in and lower their key interest rate by .75. So what happened. The stock market rallied and caused the inverse impact of interest rates going up. In fact on Wednesday and Thursday the banks stopped locking rates because the market was adjusting so quickly. As I have written here before just because the Fed lowers rates does not mean mortgage rates will be lower.
That said mortgage rates are still very very low and prices are down. Sounds like a buying opprotunity to me.
To find out how low rates are e mail me at mitch@capstone-finance.com
To apply for a home purchase or NO FEE refinance go to www.capstone-finance.com/quote.php
What You Must Know About Your Credit Scores
Posted on January 17, 2008
Filed Under Mortgage Information | Leave a Comment
Credit scoring is always a hot topic when it comes to any financing. As you probably already know credit scores are used for everything. Not only does your credit score affect your ability to obtain any type of credit, but in many cases insurance companies and prospective employers also take into consideration your credit scores.
If you have a low credit scores it can cost you big time. It will cost you in interest and fees and it may even cost you a job opportunity. So if you have bad credit scores are you doomed? No!!
The company that computes credit scores, the Fair Isaac Corporation (FICO) has long tried to keep a lid on how credit scoring works. They give only very limited information on credit scoring and most of what you hear is wrong. I have had the good fortune to gain access to much of the “secret” information about credit scoring and will happily share that information with you here. I will not share any heresay information or any information that I have not confirmed here. So if you read it here it is because I know it to be true regardless of what your neighbor tells you over the fence or what your insurance guy thinks he knows or any of that.
First and foremost and most obvious you have to pay your bills on time. Anything that reports to the credit bureaus such as bank loans, credit cards, mortgages, student loans, finance companies and so on will affect your credit scores if you pay them 30 days or more late. If your bill is due on the 1st and you pay on the 5th that should not affect your credit score.
To get approved for a mortgage go here www.capstone-finance.com/quote.php
If you have questions about credit scores and or help with yours email me at mitch@capstone-finance.com
Next, don’t max out your credit cards. Even if you pay the payments on time if you utilize more than 50% of your total available revolving debt your scores will go down. That means if you have 3 cards, each with a $5,000.00 limit you have $15,000 of total available credit. If you have more than $7500 in credit card debt no matter how it is divided between the cards your scores will go down.
Inquiries are another item that everyone knows can effect your credit but most folks really don’t know how it works. First not all inquiries are created equally. An inquiry related to a care purchase or a mortgage have much less impact on your credit than a credit card inquiry. Furthermore, all inquiries for a car or a mortgage with in a 14 day period only count as one. These inquiries will likely only effect your score by a few points.
Credit cards on the other hand, particularly store issued credit cards have a much greater impact and every one counts. This type of instant score credit check can be as much as 13 points for each one. So if you are at the mall and get a card from every store you enter you could cost yourself 50 points really fast.
Length of credit history plays a big part in you credit scoring, so don’t close old accounts. If you have a credit card company that you don’t like, it is not in your best interes to close the account especially if there is no annual fee. Just cut up the card and don’t use it but you do not have to close the account.
Public records are a big hit to your credit, however once they are settled the impact begins to subside. For example an unpaid judgement or tax lien will have a subsantial impact. Once they are paid your scores will rebound. Bankruptcy is of course a public record and the atom bomb of credit score negatives.
What I have touched on here are the basics. These are the primary areas that trip consumers up on their credit scores. So remember to pay on time, shop for cars and mortgages in a 14 day period, don’t apply for store cards, don’t utilize over 50% of your available credit, and keep your accounts open even if you don’t use them.
STOCK TIPS FROM A SHOE SHINE BOY
Posted on January 6, 2008
Filed Under real estate | Leave a Comment
This story is elegedly true. I have been able to find from a couple of different sources and it is one my favorites. The story goes that one time richest man in the world John D. Rockefeller was getting his shoes shined and the shoe shine boy was giving out hot stock tips. Rockefeller took the fact that the common man would be involved in the stock market as a very bad sign and promptly got out of the market. That happened in 1929 and shortly there after the market crashed and the country slumped into depression.
This is a very important lesson to learn and it dove tails with my article about “Following The Herd”.
What commonly happens is people who are much more clever than 80% of the population get involved in something. These are the leaders. Then as they start making big money word gets out and more and more people get involved. Then as the leaders start making really, really big money everybody knows its in the news everybody thinks they are an expert and even the shoe shine boy is giving out stock tips. At that point the leaders take their ball and go home. In other words the market gets inflated and the leaders sell high. This causes turbulance in the market and the little guy rides it all the way to the bottom sells low and says the market is too risky. This may be the best market advice you will ever get and I am not an expert in the stock market. But I do know people and they operate the same way over and over again. The regular guy tends to buy high and sell low. The cardinal sin of investing. We saw it in certain sectors of the market in the 90’s and we have just seen it in real estate in the last two years.
To get approved to buy a home go here: www.capstone-finance.com/quote.php
Right now with real estate and the mortgage industry the big boys have taken their ball and gone home. Little people are getting stuck and prices are falling in many parts of the country. That means that very very soon would be a good opportunity to pick up a bargain and sit on the couch by your fireplace and start enjoying some up side for a change. Because what will happen soon is that people with cash especiall foreign investors (due to the weak dollar) will start buying up all this cheap real estate and the price will start going up. But by the time you hear about you will have missed the bargain opportunity. Buy low, sell high. Right now real estate is low. Take a hint!!
To take advantage of the current market go here: www.capstone-finance.com/quote.php
LESSONS FROM THE 90′S
Posted on January 3, 2008
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One of the big lessons that we all need to learn over and over again is that greed kills. We are learning that lesson today with the sub prime mortgage
meltdown as it is called, and I have no doubt we will learn it again in the next 10 years in some other sector of the economy. In fact it is the same lesson we learned in the 90’s with the stock market. But there is also a huge upside that we need to learn and not overlook.
In the 90’s if you recall, the stock market was hitting a new record high virtually every day. There were literally hundreds of Intial Public Offerings on a weekly basis everyone was getting in. Internet stocks were hot there prices were going through the roof and janitors were becoming millionaires practically overnight. Then it all came crashing down. It turned out that the internet companies weren’t making any money. Big movers like Enron, Worldcom, Global Crossing and many others were just flat out lying about their financial viability by cooking up bogus financials. So the bottom fell out! The same thing just happened in the mortgage business. All anyone cared about was making a fast buck by originating loans. Unfortunately due to fraud and dubious lending practices eventually it came out that many of these loans were going bad. So the bottom dropped out.
When the crap hit the fan in the stock market it was at approximately 11,500 this was in 1999. So everybody pulled out of the market and by 2002 dow was at about 7600. Today the dow closed at just over 13,000 that is a 71% increase in the last 5 years.
The exact same thing is happening now in real estate. “Irrational exuberance” along with greed led to rapid appreciation. Now we are in the midst of the down turn. What do you think will happen next? What do you think you should do? If you think that anytime in the next 5 years you want to buy a house, you probably should do it now. Inventory is high, sellers are nervous, and interest rates are extremely low.
The Obvious Solution That No One Will Offer
Posted on December 20, 2007
Filed Under Mortgage Information, Subprime Lending | Leave a Comment
There is tremendous concern throughout all sectors of the economy about the millions of sub prime adjustable loans that are out there. This concern is indeed a valid one. These are the loans that were sold with a low or at least reasonable up front interest rate which is fixed generally for 2 or 3 years and then becomes variable.
In the sub prime world this loan was about the only viable option for borrowers for about the last 4 years. The fixed rate that lenders were offering was so high that no one would take it and they would accept the variable option.
To exchange a variable rate to a fixed rate for free go here:
http://www.capstone-finance.com/quote.php
The concern now is that many of these loans are going to go into default because of the skyrocketing payments. This is real concern because these rates can really jump when they become variable. Since lenders don’t want the homes back and since borrowers can’t pay the higher payment WHY NOT JUST GIVE THEM A FIXED RATE- FOR FREE!! All these lenders would have to do is offer the borrowers an opportunity to transfer to a fixed rate mortgage. If you think this can’t happen think again. I have been offering this option to my clients and it works.
If you would like to take advantage of this opportunity I will do the same for you. Simply go to http://www.capstone-finance.com/quote.php and fill out the “get a quote” information.