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minnesota

MN FHA streamline Refinance Loans

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FHA Refinance

Learn About Your Mortgage Options

Homeowners enjoy the benefits of investing in their property year after year. For some, there comes a time when that investment can come in handy. Refinancing with an FHA loan can prove to be an effective way to put that equity to work. Keep in mind that FHA refinancing is only available to homeowners who are currently using their home as their principal residence.

FHA options to homeowners who are considering an FHA refinance mortgage:

FHA CASH-OUT REFINANCE

This refinancing option is especially beneficial to homeowners whose property has increased in market value since the home was purchased. A Cash Out refinance allows homeowners to refinance their existing mortgage by taking out another mortgage for more than they currently owe.

FHA STREAMLINE REFINANCE

This refinancing option is considered streamlined because it allows you to reduce the interest rate on your current home loan quickly and oftentimes without an appraisal. FHA Streamlined Refinance also cuts down on the amount of paperwork that must be completed by your lender saving you valuable time and money.

FHA Up Front Mortgage Insurance Premiums (UFMIP)

FHA has recently made changes to the required mortgage insurance. June 11, 2012 is the date FHA Up Front Mortgage Insurance Premiums (UFMIP) will be lowered for some borrowers applying for FHA Streamline Refinance Loans. An FHA Mortgagee Letter 12-4 explains the changes, which affect some, but not al, FHA streamline refinancing loans:

For all FHA Streamline Refinance transactions that are refinancing existing FHA loans that were endorsed on or before May 31, 2009, the UFMIP will decrease from 1.75 percent to just 0.01 percent of the base loan amount.

Basically, those borrowers who have an FHA home loan for a single-family property that was endorsed on or before May 31, 2009 are eligible for a lower rate on their Up Front Mortgage Insurance Premiums. It’s important to note that this rule applies only to those with an FHA Streamline refinancing loan with a case number assigned on or after June 11, 2012.

The same mortgagee letter contains another announcement; “Decrease to Annual Mortgage Insurance Premium on Certain Streamline Refinance Transactions”. In this message, the FHA states, “For all Single Family Forward Streamline Refinance transactions that are refinancing FHA loans endorsed on or before May 31, 2009, the Annual MIP will be 55 basis points, regardless of the base loan amount.”

These two items make for a very significant savings on FHA streamline refinance transaction here in Minnesota, Wisconsin, and the rest of the country.

One other item. It’s important to remember that the FHA does not regulate FHA streamline mortgage interest rates or set them in any way except to state that such rates must be reasonable and customary according to the housing market in that area. Borrowers should expect to negotiate interest rates with the lender and/or comparison shop for the best rates and terms. 

FHA Mortgage Insurance REFUND Chart

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An FHA STREAMLINE REFINANCE is HOT right now because of the super low mortgage rates, so it is important to understand a possible FHA Mortgage insurance refund you may qualify for.

If you have an FHA loan, FHA charges an upfront MIP (mortgage insurance premium). This amount is calculated as a percentage of the loan amount, then added to your loan amount. That MIP amount you paid depends on when the FHA case number was requested.

If you’ve had your FHA loan for less than three years, and your are refinancing to a new FHA loan, you get a refund of some of the initial mortgage insurance premium (MIP) you paid on your FHA loan

The chart below is what FHA underwriters use to determine the amount of money refunded at the time of a FHA to FHA refinance. FHA will refund a percentage of that upfront MIP in the refinance. No refund check or anything is given to you, the refund is simply calculated into the costs of the new loan. The shorter the home owner has had the current FHA loan the higher the refund amount. This amount is displayed on page four of the application section called the “details of transaction” page.

FHA MORTGAGE INSURANCE REFUND CHART

FHA Mortgage Insurance Refund Chart

Example: You are refinancing, and at the time of closing, your current loan would be 2-years and 2 months old. Looking at the chart, you would get a 54% of the original MIP refunded to you as a credit on your new loans closing costs.

USDA Home Loans are Zero Down Payment

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USDA 100% Home Loan Financing – Best Kept Mortgage Secret! 

7 out of the 11 Twin City County Areas are eligible. These properties are closer than you think!

The USDA Guaranteed Rural Housing Mortgage Program offers individuals and families 100% financing for semi-rural to rural properties throughout the state of Minnesota and Wisconsin.

  • 100 % Financing – ZERO down payment
  • No Cash From Buyer
  • Cheap Mortgage Insurance (especially compared to FHA loans)
  • No Assets Needed – No Money left in the bank needed
  • Relaxed Credit Requirements
  • Finance Closing Costs into the Loan

VA Streamline Refinance Loan

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Mortgage Rates are at Historic Lows. Start saving money now on your VA Home Loan!

Minneapolis, MN: If you are a veteran, you are eligible for a great benefit, the VA Home Loan. If you currently have a VA Home Loan, you may qualify for another great benefit, the VA Streamline Refinance Loan.

Officially known as The Interest Rate Reduction Refinance Loan (IRRRL), it is one of the easiest refinance loans available today.  The VA Streamline Refinance is the second best programs offered to you through your housing benefits from the Veterans Affairs (the first was buying the home with a VA Home Loan!)

Potential NO Appraisal (upside down might be OK)
Lower Credit Scores
NO Qualifying Debt Ratios
NO Income Verification
NO Out of Pocket Expenses

A good local VA Mortgage Leader will show you how to utilize your Certificate of Eligibility and lower your rate and start saving money today.

VA guaranteed Loans are originated by private approved and authorized lenders. VA Mortgage Home Loans must be used for their own personal occupancy. The VA will guarantee a portion of the mortgage to the lender reducing their risk and allowing opportunity for lower interest rates. The VA Guaranty minimizes the risk to the lender which results in better financing terms.

Home prices leap – Time to buy

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Twin Cities home prices bounced up in April with the largest jump since before the housing market meltdown.

A shrinking supply of homes on the market and the reappearance of multiple offers helped drive the median sales price up 12.4 percent to $163,000 over the previous April.

That’s the largest increase since January 2004, the Minneapolis Area Association of Realtors said in its monthly report Thursday, May 10.

Fewer foreclosures also helped boost prices, as traditional sales accounted for a greater share of the market, which “tends to drive up median and average prices since they tend to sell for more than foreclosure properties,” said Cari Linn, president of the trade group.

Read the full story

Check Minnesota Mortgage Interest Rates

 

 

Adjustable mortgage loans popular again. Here is why.

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Adjustable (ARM) Loan Resets Cause Foreclosures – Fact or Fiction?

Saint Paul, Minnesota: Requests for adjustable mortgage loans dropped to near zero the past few years because of the general belief that adjustable loans are bad, and that recent high levels of foreclosures was because homeowners were doing fine with their loans until their adjustable loans reset to higher rates.

Lenders are again starting to see inquiries about, and home buyers again taking adjustable rate loans because of the super low adjustable loan rates.

FACTS VERSUS FICTION:  According to recent nationwide data, the number one reason homeowners default on their home loans was because their income was cut. This accounted for just under 60% of loans in default. Once traditional causes of foreclosure are factored in (divorce, major illness), cash flow problems added up to a whopping 80% of all “causes” of defaulted mortgages nationwide.

Adjustable payment loans resetting to a higher payment alone accounted for just 2%, according to the data. Rather than being the cause, they appear to be the final straw that breaks the camels back of people who were already in financial trouble.

ADJUSTABLE RATE MORTGAGES: Adjustable Rate Mortgages (ARMs) became one of the most popular and effective tools for helping some prospective homebuyers achieve their dream of homeownership between 2000 and 2007. Initially developed during a time of high interest rates that kept many people out of the housing market, the ARM offers lower initial interest rates by sharing the future risk of higher rates between borrower and lender.

IS AN ADJUSTABLE MORTGAGE RIGHT FOR YOU? Talk to a local licensed Loan Officer (not an unlicensed bank application clerk) about the benefits. ARMs can be an excellent choice of financing under certain conditions, such as rising income expectations, high interest rates, and short-term homeownership plans. But because payments and interest rates can increase, either steadily or irregularly, homebuyers considering this kind of home mortgage loan need to have the income to keep up with all possible rate and/or payment changes. Each ARM has four basic components:

  • Initial interest rate, which is typically one to three percentage points lower than that of most fixed rate mortgages.
  • Adjustment interval, at the time between changes in the interest rate and/or monthly payment will be.
  • Index, what lenders use to determine future rate changes. This is usually LIBOR.
  • Margin, or the additional amount the lender adds to the index to establish the adjusted interest rate on an ARM.

Typical adjustable loans come in 1-year, 3-year, 5-ya, 7-year, and 10-year initial fixed term options. The 5-year adjustable is super popular. The rate is fixed for the first five years of the loan, then becomes adjustable on a yearly basis.

Is the real estate market going Up or Down?

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Is the real estate market finally going up, or still in trouble?

It depends on what market statistics you are looking at. Is there a real estate recovery, or is this just a small blip in the radar of a longer housing cycle?
For the 7th month, home prices of non-distressed properties have declined, according to Inman News. Not good news for sellers, but awesome news for buyers.
In another report,  pending home sales are up in March, an indicator of a real estate recovery, according to the National Association of Realtors. That index is now 111, and 100 or above is considered a healthy real estate market. The index in March 2011 was 89. The index right now is what it was in 2001 before the market started climbing.
But the public appears to be wary of all the discord between the talking heads, and all their doom and gloom. Buyers appear to be finally getting off the fence, taking advantage of super low mortgage interest rates,  and house prices not seen in a decade.
What’s different today? Is this just an uptick on the graph that will quickly be pulled down by the shadow inventory and new distressed sales?  Are we truly pulling out of the mire of dismay and dismal market we have suffered through since Fall 2008?
From my individual perspective, there is a change in the real estate market that I have not seen in years. Buyers are eager to buy, they are making offers, they are NOT sitting on the fence any longer, and good homes, priced right, especially in the under $200,000 market, are once again selling in just days with multiple offers.  The buy versus rent question is clearly leaning towards home purchase once again, especially for first time home buyers.
Buyers need to be fully pre-approved from a licensed mortgage loan officer and ready to make an offer.

Lowest Interest Rate or Lowest Closing Cost – Which is better?

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Lowest Interest Rate or Lowest Closing Costs – Plus No Lender Fee, or No Closing Costs Advertising

HOW DO THEY WORK?

A common mistake shoppers make is to simply ask: “What’s your rate?” or “What are your closing costs?” Both logical questions to ask, but they do not give the response most borrowers need to make a proper decision. Borrowers must understand both rates and fees.  Interest Rates are only half the answer to getting the best mortgage deal. It is possible end up with the lowest rate, or with low or no closing costs, but not necessarily the best deal.

Remember that nothing is ever free. Lenders simply use “reverse points” whenever they claim to offer any sort of low closing costs, or no fee mortgage.

Simply put, the lowest rate & the lowest fees do not go hand-in-hand. NO LENDER can offer both together. I can give you rock bottom rates, but it will cost you in fees. I can give you the lowest fees, but it will cost you in interest rate. Most lenders quote their best rate in combination with covering all third party fees (appraisal, credit report, title company, state taxes, county recording fees, etc) with 1% origination. See the example below.

Here is an example of Rate vs. Costs on a $150,000 – 30 year fixed loan

Here is an example of Rate vs. Costs on a $200,000 – 30 year fixed loan
Lower Rate Standard Quote

Low Cost

Total NO Cost

Rate

4.75%

5.0%

5.25%

5.75%

Origination

1%

1%

None

None

Discount Points

1%

 None

None

None
Closing Costs $5042 $5042 $3042  $0.00

Closing Costs with Points

$7167

n/a

n/a

n/a

Monthly P & I Payment

$1043.29

$1073.64

$1104.41

$1,167.15

10 Years of Interest

$92,352

$95,240

$98,151

$108,037

20 Years of Interest

$155,609

$162,618

$169,718

$188,181

30 Years of Interest

$181,300

$190,232

$199,311

$221,909

WHICH LOAN VERSION is RIGHT FOR YOU?

The combination of rate & fees can be very confusing. One lender is screaming “No closing costs.” A second lender may quote you just $000 in fees, while another lender is offering an amazing rate.

So are closing costs and fees bad? Well if you ask everyone’s brother who has a real estate license and knows everything about mortgages, then the answer you will most likely hear is yes.  I am here to tell you everyone’s brother is probably wrong.

Good enough answer?  I didn’t think so…

Begin by asking yourself “How long am I going to be in this property?” This is the single most important question to determine which option is best for you. Now look at the chart above. It becomes very obvious based on how long you are going to be in the home if ‘Best Rate or Lowest Cost‘ makes the most sense for you and your family.

Congratulations, you are now smarter than everyone’s brother, mother and sister with a real estate license.

ZERO DOWN USDA RURAL DEVELOPMENT LOAN – Not just for Rural Areas

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ZERO DOWN USDA RURAL DEVELOPMENT LOAN – Not just for Rural Areas

Minneapolis, MN: One of the biggest difficulties many first-time home buyers face is a lack of down payment, and the necessary money to pay closing costs. Most “zero down payment programs” disappeared with the mortgage market meltdown that started in 2007, so in most parts of the country, the only true no money down programs are just the VA home loan for Veterans or the USDA Rural Development Loan.

Guaranteed by the USDA (United States Department of Agriculture), this program might make you think that you have to buy farmland or live “in the country” to qualify, but this is often not the case. In fact, you might be surprised to see just how many neighborhoods actually do qualify as rural development areas. For this program, the term “rural” really applies to those areas with a lower population, or fewer homes, not necessarily those areas or farmland far outside of the city. To see what areas qualify for the USDA Loan, click here for the property eligibility map.

There are several benefits of the USDA loan program besides no money down. The program has very low private mortgage insurance costs compared to other loans, and the seller is allowed to pay all of your closing costs and pre-paid items up to 6.00% of the total sales price of the property. While this is great news for first-time home buyers, it’s important to note that you don’t have to be a first-timer to qualify for a USDA loan.

Other than the location of the property you’re seeking to buy, there is one other important aspect to the USDA loan.  It has income guidelines. Click here to see if your family incomes qualifies for the USDA loan. Luckily, however, these numbers have recently increased to allow more potential buyers to take advantage of this special program.

For the USDA program, a great rule of thumb is no major metropolitan areas, and any town with less than 20,000 population.

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Tips for successful refinancing

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TIPS FOR REFINANCING

Minneapolis, MN:  As homeowners rush to take advantage of the new HARP program and some of the lowest mortgage rates in history, it’s easy for them to get lost in the refinance stampede. That’s why it has never been so crucial for borrowers to understand the refinance game, and how to make the most of their application.

LENDERS OVERWHELMED
First, understand most lenders are overwhelmed with the high volume of refinance applications they have received since mortgage rates recently tumbled. Loans that went from application to closing in 30-days, are now running at least 45 days, and for most banks, upwards of 90-days. Online applications that were looked at within hours, now may take a few days before the lender calls you back.

MAKE GOOD LENDER CHOICES
Your mortgage lender choice is more important than most people realize. Generally speaking we suggest you deal with a local lender.  There is nothing some out-state lender advertising super low mortgage rates and with a fancy web site can offer that you can’t get down the street. Choosing your current lender very often is not the cheapest and easiest deal. Rather, just the opposite, as they know so many of their current clients call them without shopping.

ADVANCE PREPARATION
To speed up the process, borrowers should begin to assemble the standard loan paperwork as soon as they decide to apply for a loan. The minimum documentation for a mortgage loan everyone will need is; their two most recent pay stubs, or last two years tax returns if self-employed.  Their last two years W2’s, photo ID, and their last two banks statements.

DON’T DELAY
Once you lock a great interest rate, get the documents to the lender within a day. One missing document, or any delay by the borrower in providing s requested documents by the lender could easily add significant delay or problems with your refinance. As a borrower, you need to make sure once you lock an interest rates, you drop everything and respond to any lender request. Loan processing is first-in, first-out. Sign your paperwork within a day, and let the appraiser in your home as soon as humanly possible. Underwriting won’t even begin until they had your signatures and the appraisal in hand.

TALK TO THE LENDER
Borrowers should also ask their lenders upfront for a time frame on when they should expect to close on the refinance loan and lock their rate accordingly. Once the initial signatures and documents have been submitted, there will be a waiting period when there’s not much the loan officer and the borrower can do. Even during that time, borrowers should not be afraid to check on the progress of their refinance. Checking in once or twice a week is pretty reasonable to make sure your refinance application is on track. Underwriters may ask for additional documentation once they get to your file, so it’s important to stay in touch with your loan officer and be diligent.

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Are mortgage rates going up?

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ARE MORTGAGE RATES GOING UP?

Minneapolis, MN: Mortgage interest rates jumped up last week, putting a scare in those sitting on the fence, thinking about refinancing, yet waiting form rates to drop a bit lower. Lucky for them, Minnesota mortgage interest rates moved back down slowly to about where they have been holding for some time.

The big question is how long can mortgage rates remain this low? 

Mortgage rates have been stuck at these amazingly low levels for the past five months. According to Freddie Mac weekly survey of mortgage rates, last week was the first time that interest rates on a standard 30-year fixed-rate mortgage rose above 4 percent, only to slip back below this week.
It’s very clear that mortgage rates can’t stay this low forever. It was big news when 30-year rates fell below the 5 percent mark in March 2009 – a level unimaginable just a few years before. Now we’re a full percent lower than that. When you consider that rates rarely fell below 7 percent prior to 2001, and often ranged much higher, it’s clear that rates will eventually move back toward more historical norms. When I bought my first house in 1981 – I paid 16% for an FHA 30-year fixed mortgage.
The question is, when will that happen – and what will trigger it?  So, is it smart to keep holding out for lower refinance rates? Probably not…  Is it wise to not buy a house today?  Probably not, especially with these interest rates and zero down programs like the VA loan program, and the USDA Rural Development Program.

NO Closing Costs Loans COST Money

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I constantly receive requests for a No Cost loan. Sadly there is no such thing.

All loans have closing costs associated with putting the loan together.

Just like you, participants in the mortgage loan process don’t work for free. The Appraiser, Title Officer, Title Insurance, County Recording Fees, Minnesota Mortgage Registration Tax, as well as your lender all need to get paid as part of the process.

Each of these parties charge fees for their service in processing and funding your loan. The Lender’s responsibility is to explain to you what the services and costs are, and to give you an estimate of the total costs when you apply for a loan. This estimate comes in the form of a document titled Good Faith Estimate of Closing Costs. It is only an estimate, but it should be very close to your actual costs. Lenders are not allowed to pad, or add onto the costs charged by these other parties, but rather simply pass on what they charge. The vast majority of closing costs go to third parties, not your actual lender.

The real question is: How do I get a loan so I don’t have to pay for these required services? The simple answer is you can’t. What you can do is determine how they get paid.

Purchasing or refinancing, it basically works the same way. All of the costs associated with transaction are paid in one of four ways: By you in cash, by the Seller (in a purchase), by rolling it into the new loan amount (refinance), by the Lender, or a combination thereof.  The most common way in a refinance is by rolling the closing costs into the new loan amount.

Now you may be saying “Wooh-Hooh, let the lender pay”, but you need to know how the lender can do this, and why it may not always be such a smart move.

To have the lender pay your closing costs, you agree to accept an interest rate that is higher than what is considered a “Market Rate.” In doing this, the lender receives more cash than just the face amount of the mortgage loan when they sell it to an investor on the secondary market. This excess cash is what the lender uses to pay some or all of your closing costs. This means that over the life of the loan, you will be paying more interest to the lender than you otherwise could have.

Does this strategy make sense for you? Maybe. It depends on several factors. How much higher is the mortgage rate and what is the monthly cost to you in increased payment? How big or small is the loan? How long do you plan to stay in this loan? Do I have the cash to pay the costs out of pocket?

This is where it becomes important to work with a Licensed Mortgage Originator and not a bank employee. As I have said many times, A Mortgage Banker / Broker is required to be Trained, Tested and Licensed in all aspects of Mortgage Origination. A bank employee is usually just registered, not tested, not licensed, and not required to be educated, tested, or licensed.

A NO COST loan is not automatically good or bad.

A local licensed Loan Officer will do the math with you, and take the time to show you the pros and cons of each method of paying closing costs so you can choose the best option in your particular situation.

Top two myths about Real Estate Agents

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With millions of web sites to look at for home for sale listing, it is becoming more and more common for people to feel they don’t need the help of a licensed Real Estate Agent.

More specifically, people seem to ONLY be calling listing agents for the properties you want to see. The thought behind this I suppose is “I can get a better deal if I don’t involve another agent and contact the listing agent directly.”

While the listing agent loves you only calling them, here is why is is usually a costly mistake for home buyers.

Myth # 1- I will get a better deal if I call the listing agent directly.

That listing agent is contractually bound to do what is in the best interest of the seller, and that means getting the highest dollar amount for the sale of the home. NEVER disclose your top dollar or financial ability to get a bigger mortgage loan to them because by law they have to go back to the seller with this information.

Remember…your goal is to pay as little as possible, while the seller’s agent’s goal is to get as much as possible for the seller. No matter what a Real Estate agent claims, this is a clear conflict of interest.

Myth # 2- I can find more homes for sale by calling more than one agent, or looking at multiple web sites.

The days of each real estate office having big books of only their companies listing are long gone. It is mutually beneficial for all Real Estate Agents to have all properties in the same database (call the MLS – or Multiple Listing Service)

All Real Estate Agents in the same area therefore pull the same list of homes available  for sale from the same multiple listing service database. Local agent sites typically interface with the local MLS site a minimum of once per day. If a new house for sale gets added today, EVERYONE local should have it listed tomorrow.

If you saw a home on Zillow, or some other national site, but that particular home didn’t come up in the local agent’s site, remember sites like Zillow & Trulia are NOT updated as often as the local MLS database real estate agents can pull from are. If it is not on the local MLS…  chances are the house that you saw has already been sold or is already under contract.

More importantly, the opposite is more often true. You find a home on a local real estate web site but NOT on the national sites. This is because some local companies do NOT report to the national systems. In my area (Minneapolis / St Paul, MN), the biggest player in the market (Edina Realty) recently stated they will no longer let their listing be show on the big national sites.  This means if you are looking at home for sale here, but on a national site versus a local site, you a NOT seeing over 20% of this areas listing!

The bottom line is the smart move for home buyers, and especially first time home buyers in MN and WI, is to use the services of a good, licensed local real estate agent in any home purchase transaction, and save yourself a lot of time by only looking at one LOCAL REALTOR web site.

Can you qualify for a mortgage with bad credit?

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Can you qualify for a home mortgage loan with bad credit?

FACT: The mortgage and credit crisis which exploded onto the scene in 2007 has eliminated bad credit and bruised credit mortgage loans. Lenders simply don’t offer bad credit sub-prime home loans anymore.

What’s Your Credit Score?
Every lending facility uses guidelines to determine your credit worthiness. Upon reviewing your application, you’re given a credit grade and a determination regarding your loan’s approval or denial. Lenders DO NOT give loans to those with bruised credit anymore. If you are denied by a one lender, contacting 10 more probably won’t help. Click here for some general criteria used within the lending industry to determine credit.

What credit score do I need for a home loan?
Generally speaking, in today’s mortgage world, if your middle credit score is below 640, it is very unlikely that you will qualify for home loan financing no matter what anyone tells you or you see elsewhere on the internet. With a score below this level, you really should save yourself the hassle. Stop attempting to find mortgage loans, and work on improving your scores instead.

Review your credit score?
If you are not sure what your credit score is, you should officially find out. Apply for the mortgage loan, and let the mortgage lender review your exact situation. DON’T ASSUME YOU CAN’T QUALIFY!

CREDIT PROBLEMS & ANSWERS

Late Payments
If your credit has multiple RECENT 30, 60, or 90 plus day late payments, you probably won’t qualify. Especially if those late payments occurred LESS THAN than two years ago. Lenders want a clean recent payment history. Check HERE for some general criteria used within the lending industry when you have late payments.

Credit score graphCollections, Judgements, Tax Liens
If your credit history indicates unpaid collection accounts, most “A” grade loan lenders will require these amounts to be paid off before the loan is funded. FHA typically will ignore them if they are under $500, and more than 2 years old. Medical collection “usually” are ignored. Judgments’ (you got taken to court & lost), are almost always REQUIRED to be paid off before approval.

Bankruptcy & Foreclosures

  • If your bankruptcy is more than two year old, you can usually be approved for an FHA loan with as little as 3.5% down.
  • If your foreclosure was recorded is OVER least three old, you may qualify for an FHA loan with as little as 3.5% down payment.
  • If your bankruptcy is older that 4 years, and you have good re-established credit, you may now qualify for an standard conforming loan.

    • High Debt Ratios
    If your income-to-debt ratios are too high, you can either reduce your personal debt (i.e., pay down your debt), obtain a debt consolidation loan, pay down your debt with funds from the sale of personal assets (boat, camper, etc.), select a lower interest rate ARM loan, or add a co-mortgagor. 

    Is a debt consolidation loan for you?
    If you have any late payments on your record, part of the reason may be because of high credit card debt. If you qualify, you can pay off all of your high-interest credit cards into a low debt reduction refinance loan which may be tax deductible (unlike credit cards, which are NOT tax deductible).

     

    What is your home worth? Find out for free

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    What is your home worth today? Wish you could get a free appraisal?

    Many homeowners are curious about the appraised value of their home. An actual appraisal is expensive, and county tax records do NOT always reflect true market value. As you may be aware, home values are constantly fluctuating, and with the decline in average values, it is important to have an accurate idea of what your home is worth.

    There are many sites that claim to give you are idea, including Zillow, Trulia, and more. It is also a well known fact those sites have very questionable data, giving values that range from close, to crazy far off. The big problem is, where is the data they use coming from and how accurate is it?

    There is a better free tool to answer the estimated appraised value of your home question. This system uses the Freddie Mac Home Price Index ( FMHPI ). FMHPI is calculated using a repeat-transactions methodology. Repeat transactions indexes measure price appreciation while holding constant property type and location, by comparing the price of the same property over two or more transactions. The change in price of a given property measures the underlying rate of appreciation because basic factors such as physical location, climate, housing type, etc., are constant between transactions. Averages of appreciation rates for different geographic areas and time periods are calculated using statistical regressions and the index values are derived from these averages

    While the estimate may not be the actual or appraised value of your property, it can be a much more accurate than Zillow to gauge fluctuations and trends in your market which affect your home’s value.

    CLICK HERE FOR A FREE HOME VALUE ESTIMATE (MN and WI properties only)

     

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    How people find a Real Estate Agent

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    The two most important people in a real estate transaction is your Loan Officer, and your Real Estate Agent.

    Having an experienced person in these two positions will make for smooth, rewarding, successful transaction. So how do people pick this very important person?

    Referral by friend, neighbor or relative is the most commonly cited method sellers used to find their real estate agent.

    Thirty-nine percent (30%) of sellers used a referral to find their agent, and an additional twenty-two percent (22%) used an agent they had worked with before.

    The typical seller only contacts one agent during the selling process, further emphasizing the importance of personal relationships in real estate.

    Sixteen percent (16%) of sellers contacted two agents before selling their home and eighteen percent (18%) contacted three or more agents.

    Among recent sellers who used an agent, eighty-five percent (85%) reported they would definitely (69%), or probably (16%) use that real estate agent again or recommend to others.

    For buyers, the average person talks to 9 agents over the typical 9 month long period from the time they start thinking about buying a home until they actually close on a home.