3 good reasons to start your home search with a mortgage pre-approval

Here are threesome great reasons to start your home see with a mortgage pre-approval.

   1. A mortgage pre-approval helps you focus your see on homes that you can afford.
   2. A pre-approval adds more coefficient to your substance to purchase, and helps you in the event that other buyers are competing for the same home.
   3. A pre-approval helps you move through the finance contingency in your substance to purchase more quickly.

The UW Credit Union does a nice employ explaining the mortgage pre-approval impact in this article. You'll find it on the purchase real estate page at DaneCountyMarket.com.

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

Home finance and home mortgage options in Pakistan

Pakistan, like many countries worldwide, is booming in the property sector. The prices are only escalating. Investors are targeting places like Karachi, Lahore, Multan and Islamabad for property due to the prices valuing at million US$. In fact, a house like Gulberg with just one kanal is sold for US$200,000, with an increase by $300,000 for a two-kanal house, and the like. The property prices, compared to what they were 5 years back, have more than tripled. People are holding the properties for the price to move up even higher in future. But will the price balloon puncture in the near future?

Many people are entering into the market with buying properties. Investments are being made in projects that would take a few years for development. On the city outskirts, many housing complexes are forthcoming; the houses valued in lakhs. Still, people are not interested in selling them off. This is because is a selling pressure is seen, the prices will deflate and there will be a sharp correction in property prices. Instead, people are opting for loans to enter the property market, but since the interest rates on these loans are high, and people are holding, and not selling the properties, there have been many cases of defaults. This is a major concern.

For buying a hew house, you need to make many decisions. Loan is the biggest decision here. Most people cannot finance a new house upfront so they invariably rely on loans from various financial institutions. The officer in charge of the loan will require you to bring various supporting documents to ensure that you have the ability to pay back the loan amount. A credit check is always done before extending a loan.

This credit check is a credit report that enabled the lender to have an idea of how well or otherwise you have been performing when it comes to clearing your debts in time. If there had been some general reason for the inability to pay the past loans, like leaving a job or falling sick, some companies do help you get your credit report back on the normal terms, and they extend you the loan. The approvals of loans take quite some time.

Most banks and other financial institutions ensure that you are able to render the loan repayment to them when the time comes. The loan officers will explain in details regarding some unfamiliar things that you might come across. In case of a mortgage, the contract is a long-term one between you and the lender, usually a bank, and the repayment must take place in an agreed period of time. In this case, the bank can exercise their right to take away the home from you if you are unable to pay back the loan. They can’t ask you to follow instructions set by them to maintain the house, but can claim the house as theirs incase of default. So this is an obligation between you and the bank that you will render the loan repayment well in time. The loan officers are always willing to do their bit to make sure that you get the best deal in business.

Jonathan Antin Lists Toluca Lake Ranch House

SELLER: Jonathan Antin

LOCATION: 10049 Toluca Lake Avenue, Toluca Lake, CA

PRICE: $1,999,000

SIZE: 2,859 square feet, 4 bedrooms, 2.75 bathrooms

DESCRIPTION: Single story home in the coveted heart of Toluca Lake near Lakeside Golf Club offers a polished interior in a tranquil setting. An automatice gate opens to a circular driveway enhanced with an ecogrid patterning. Wood floors and expansive molding accents are constant throughout the living and formal dining areas and highlighted by well planned directional recessed lighting. A guest room and full bathroom are located on one side of the home with the remaining bedrooms and the master suite located on the opposite side of the home down a common hallway....

YOUR MAMAS NOTES: Let's all get into Your Mama's gin and tonic fueled time machine and go way back to March of 2007 when we dished and discussed a Bird Street bachelor pad high above Tinseltown's Sunset Strip being sold by Jonathan Antin. Mister Antin is, of course, the L.A. based celebrity beyootishun with the chisel chin and smoldering, come hither eyes who has toiled over the tresses of divas like Madonna, Margaret Cho, Rod Stewart and Ricky Martin.

A few months later, in May of 2007, we heard from our informant John Doe who tattled that the comely coiffeur and his baby momma turned wifey Sescie were hightailing it out of the Hollywood Hills for the more family friendly 'hood of Toluca Lake. Property records do indeed reveal that in April of 2007 Mister and Missus Antin paid $1,980,000 for a single story house on Toluca Lake Avenue that sits right up next door to the beast built and occupied by original Beverly Hills 90210 star Jennie Garth and her actor huzband Peter Facinelli who not only plays a boobie grabbing doctor on the fab Showtime program Nurse Jackie but also plays a doctor in the uber-successful vampire film phenomena that is Twilight. Mister Antin, who makes Foneesha–the gal who works the hair washing station at the salon where Your Mama's locks get worked–go wild with desire, is no stranger to appearing on the boob-toob. Not only did he star in Bravo TV reality program Blow Out, he pushes his own hair car product line on the QVC.

Your Mama was sitting around the other morning chomping saltines in order to soak up the booze and we received an unexpected and covert communique from a Toluca Lake resident we'll call Gladiss Kravitz, who should not to be confused with Gladys Kravitz from Bewitched. Our Missus Kravitz conspiratorially whispered in Your Mama's big ear that after only owning the house for just 2.5 years, Mister and Missus Antin have listed their Toluca Lake property with an asking price $1,999,000. A few flicks of the well worn beads on Your Mama's bejeweled abacus shows that Mister Antin is neither just a pretty face nor a hair-brained hairdresser because he rather wisely priced his house just $19,000 more than he paid for the place 2.5 years ago when the real estate market in Los Angeles was still raging like a wildfire out of control. We're not saying the Antins will get $19,000 more than they paid, but at least they didn't up-price their property a million bucks over what they paid for it at the tippy-top of the real estate bubble like so many other rich and famous people have been doing.

Of course, Your Mama don't know a cup of coffee from a dump truck but it looks to us like the Mister and Missus Antin may have already moved from this house. Or maybe the Staging Lady in a Pink Toyota has already been up in the house clearing out all their personal effects? Or maybe the couple and their two young children simply don't like their house cluttered up with a bunch of knick-knacks and paddy-whacks? Whatever the case, listing information indicates the barely decorated, single story, hip roof ranch measures 2,859 square feet and includes 4 bedrooms and 2.75 poopers. An automatic gate opens to a large circular drive with a cross-hatched pattern of concrete squares and grass strips that listing information calls an "ecogrid."

The front foyer leads to the living room which has hardwood floors, a corner fireplace, a wall mounted flat screen tee-vee, French doors that open to the back yard, and a bunch of furniture that looks like it was ordered out one of those Pottery Barn catalogs that get delivered to Your Mama's house every damn day. While there's really nothing special about this room that we can see, we do like the blue and lighter blue striped rug and imagine it might look mighty fine in our upstairs office. The wood floors continue into the dining room which has corner windows covered by plantation shutters, more French doors and one of those unfortunate candle chandeliers hanging over the farmhouse table. Listen children, we know these candle things probably give off nice and romantic light, and we would certainly never recommend a klieg-like lighting solution for a dining room, but the five puny candles that make up this paltry chandelier probably wouldn't light up a damn closet let alone provide enough light in the damn dining room to see what you're putting in your mouth.

The eat-in kitchen is all country style with knotty pine cabinetry, a cross-hatch pattern tile floor with wood inlay that unhappily mirrors the "ecogrid" on the driveway, and eggshell-colored tile counter tops with a very upsetting flowery detail on the edge. Listing information indicates the appliances are all high grade, that there is a prep sink, a pantry, a separate office area/work station, and an indoor grilling hearth because, you know, it's not so easy to barbecue outside with all the inclement weather in Los Angeles. The children will note that the dishwasher has been raised up so that Cho-Cho the dish dude won't bust up his back bending over while loading and unloading the fine china.

According to listing information, there is a guest bedroom and pooper on one side of the house and the home's other three bedrooms are located on the other. The master bedroom appears to have chocolate brown carpeting which might be good for hiding dirt and doggy doo stains, but otherwise Your Mama can't see any sufficient reason for installing chocolate brown wall to wall carpeting. Overall Your Mama does not care for the lackluster day-core in the Antin house, but we are coveting that pair of wood benches at the foot of the bed. The master pooper is home to about 49 different types and colors of tile and a commodious shower that listing information says has a "plethora of shower heads" which is a lovely feature if you like to have your choo-choo sprayed clean at the same time you're washing your hair.

Several sets of French doors and French door-like sliding doors open to a covered brick terrace that runs along the backside of the house. Listing information indicates the flat and grassy backyard is "thoughtfully landscaped," and while large enough, does not currently have a swimming pool. It does, however, have a dog run, which is nice if you have dogs but not so much if you don't.

In addition to Jenny Garth and Peter Facinelli, the Antin's nearby neighbors also include High School Musical's Ashley Tisdale and former Baywatch babe Brooke Burns who was once married to not afraid to bare his booty on national tee-vee Nip/Tuck hottie Julian McMahon.

HERA Changes on Disclosure of TIL and Regulation Z

Effective July 30th 2009 the following changes will affect all transactions in the mortgage industry and will affect Brokers as well as Banks. The changes will affect how to disclose the Truth and Lending and the Regulation Z the result of the “The Housing and Economic Recovery Act of 2008” (HERA) changes.

The Housing and Economic Recovery Act of 2008 (HERA)

HERA was developed to protect the mortgage consumer. The Act contains provisions that revise the Truth and Lending Act and will apply to all loan applications received on or after July 30, 2009.

Initial Truth In Lending (TIL) Disclosure

The initial TIL disclosure has been amended to require specific language to notify the consumer that they are not required to complete the loan agreement merely because they have received the disclosure or signed a loan.

Waiting Periods

Please note: For all timing requirements set forth below, “business days” are Monday through Saturday, excluding legal public holidays.

The revised rule implements waiting periods for the collection of fees and loan closing. The following waiting periods apply:

    * Creditors, Mortgage brokers, and any other person are prohibited from imposing any fee other then a reasonable credit report fee until the consumer has received the lenders initial disclosures.
    * The loan cannot close (i.e. document signing) until seven (7) business days after the initial TIL disclosure has been mailed.
    * The loan cannot close until three (3) business days after re-disclosure TIL is received (when applicable).

If the disclosure are delivered via regular mail, the disclosures are considered received by the borrower three (3) business days after they are mailed. When disclosures are delivered electronically, consistent with the E-Sign Act, the creditor may rely on evidence of actual delivery to determine when the three-business (3) day period begins. Accordingly, lenders are adapting disclosure processing to support electronic communication of the Truth in Lending. Electronic delivery of the disclosures allow for a more streamline process and provides an opportunity for better customer service.

The Annual Percentage Rate Change Provision

If the APR increases by more then 0.125% on Fixed rate loans or .250% on ARMS from the previously disclosed APR, a re-disclosure TIL must be provided to the customer. The loan cannot close (document signing ) until Three (3) business days after the re-disclosure TIL is received by the borrower.

Appraisal FEE Collection

A consumer (applicant) credit card authorization after the lenders TIL has been received.

Penalties if out of Compliance

If the previous procedures are not followed the following will take place. The loan will be canceled with the lender and appraisal will become void and the process will have to start over with a new lender. Brokers will be fined $4,000.00 and the lender will be fined .20 of the loan amount if audit shows it was out of compliance.

By :  John Le Francois

Death and Taxes: The Language behind Mortgages and Amortize

It is interesting to look at real estate and see the etymology behind the words we use so casually today. Two of these are “mortgage” and “amortize”, words that are based on medieval Romance language terms for death. Why death? And why, when we are speaking English, are we using a term based on Old French? The answer can be traced back over a period of a thousand years.

The “mort” of “mortgage” and “amortize” is derived from Latin via Old French. “Mori”, Old Latin for ‘to die’, became “mort” in Old French and traveled in that form to the present-day usage in modern English words. The Norman conquest of England in 1066 brought a large number of French loan words from Anglo-Norman, which displaced Old English as the language of the upper class. Nearly 1000 years later, we still use the language forms introduced to the British Isles by an ancient conqueror.

The term “mortgage” appears as “gage mort” in Old French in 1267, but by 1283, the terms were reversed. In 1390, “mortgage” as one word appears in written English text. The “gage” in mortgage comes from a term referring to a forfeit if a debt is not paid. As a homeowner today can be levied fines, lose a good credit rating or have to declare bankruptcy if unable to meet mortgage payments, this is still an appropriate reference today! “Mortgage”, then, means “dead pledge”. If the mortgage loan is defaulted on, the property is “dead” to the borrower. If the loan is paid in full, the pledge to repay it was “dead”.

“Amortize” also comes from the root word of “mort”. In this case, the term refers more to the action of effecting death. 1375 saw Middle English use the term “amortisen”, literally “to kill”, “die”. What people are doing by paying off a mortgage loan is “killing” the loan and the interest by steady application of payments calculated to pay off both in a set number of years. Upon the “death” of the loan, the debt to the lender was reckoned “dead” and had no power to exert influence on the living, in this case, the lucky medieval person who managed to avoid death long enough to become a property owner outright.

While today’s real estate speculator might think that this mode of thought was somewhat morbid, one must remember that the generally abysmal state of health care of the medieval period and you had societies where death was a lot more up close and personal than it is for today’s Western world. The Black Death had peaked in Europe in the mid 1300s, when the first references to “mort” as something to do with real estate emerged on paper. The culture of a conquering and a conquered people also makes this usage appropriate; often winning and losing was as simple as living and dying.

Owning or having the rights to use land was what kept a person alive. The loss or despoilage of it meant the death of the former owner or tenant was a very real possibility. Land was and still is power - whoever controlled it had the best chance of living; whoever lost it was cut off from the one tool that furnished them with the resources to survive. There was no welfare or walk-in clinics; there was only land and property. So, in a very real sense, the "death" of a mortgage meant life for the person who was responsible for it. We may have moved on from medieval times, but the language of survival still lurks within the terms that we may think only extends to money.

By :  Carolyn Capalbo

5 Powerful Mortgage Marketing Solutions during Economic Crisis

Any marketer should know that flexibility is important. This means that you must be able to adapt your strategies according to the available resources, the ever-changing market and the general economic condition. Marketing, thus, becomes one of the biggest challenges of those who are involved in generating mortgage leads. It is imperative that you do not only get to implement your plans, but you must also be able to make it more adaptable to the economic crisis.

The good news is that there are a lot of ways that you can implement. These ensure that your marketing techniques can thrive and still become effective even in the trying times.

1. Know your mortgage audience. Your first objective should be to know the people that you want to deal with. We are talking about your target audience. In truth, the number does not really matter. What is most important is that they can provide you with good conversion rate. You can have a hundred or even less, but you are sure that they can take advantage of your mortgage plans. They make closing deals a lot easier for you.

That is why it is highly advisable that you create your own criteria for your target market. For example, if you are going to sell laptops for students, your target could be those who are entering universities and colleges. Most of them may already have their own money or jobs to make a purchasing decision without outside influence. They are also one of the biggest users of laptops today.

2. Inform your market of your product’s benefits. You could have a mortgage plan that is 25 percent less than that of your competitor’s, but what potential customers are looking for are the benefits of getting it. Will it allow them to save on closing costs?

Leads will always be asking for “What is in it for me?” They want to make sure that the product or service you are offering is the solution they are looking for or the one that can satisfy their needs. Unless you are able to give that, your products will not sell—even if they are laden with the best features.

3. Maintain your expenses not cut back. A company will always have an advertising budget. During economic crisis, though, the firm opts to cut back on their marketing costs, which is actually not an ideal move. You are not only cutting back on your expenses, but you are also decreasing your market share or exposure. What you have to do then is to simply retain your advertising media. If they are getting too costly, you can try to search for other options. For instance, if a one-page advertisement in a local daily is already going to make you pay almost a thousand, you can opt for a half-page, which could be several hundreds less.

4. Diversify your target audience. You must know the difference between diversification and qualification. Diversifying does not mean that you have to stop qualifying your mortgage leads. This only means that your products should cater to more than just one market. For example, your mortgage plans may be applied for by first-time home buyers as well as for those who are refinancers. To know which to offer, be in constant watch on the needs of your market and industry.

5. Monitor your marketing strategies. You are not only going to monitor your leads but also your marketing strategies. Though it has been told that you have to retain your marketing techniques, there is no use in keeping the ones that do not work at all. This is because these strategies can no longer be considered investments but additional costs for your business. You may utilize your lead analytics application to determine which of them are working effectively for you.

By : John Perry

Mortgage rates remain near historic lows

Freddie Mac published the results of its most recent mortgage market survey on Thursday. The average commitment rate for a 30 year fixed rate mortgage was 4.82%. The average rate for a 15 year fixed rate loan was 4.5%.

Here's how rates have trended over the last 20 weeks.

A number of local lenders currently offer 30 year loans for fixed rates at or below 5%. For the latest on local rates, you can view our daily mortgage rate updates on the buying real estate page at DaneCountyMarket.com.

Have a good one,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Interest rates reach new lows

Interest rates have reached new lows, according to the latest weekly mortgage survey by Freddie Mac. Rates for 30 year fixed rate mortgages averaged 4.85%. Rates for 15 year mortgages averaged 4.58%.

Here's how rates have trended over the last 20 weeks:


For the latest rates from local lenders, check out the mortgage update page under buying real estate at DaneCountyMarket.com.

Have a good day,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Mortgage rates plunge below 5%

Mortgage rates have plunged again. You can check out the latest rates for local credit unions and banks on the buying real estate page at DaneCountyMarket.com.

Have a good night,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Mortgage rates continue along historically low levels

Rates for 30 year fixed rate mortgages have been hovering around 5% for the last two months. According to a February 26th survey conducted by Freddie Mac, the average rate for a 30 year fixed rate loan was 5.07%. The average rate for a 15 year loan was 4.68%.

Some folks are waiting to see if rates will go lower. Whether they do or not, this graph - showing rates back to 1992 - should put things into perspective.

Rates right now are about as they've ever been. You'll find our full mortgage report and daily rate updates on the buying real estate page at DaneCountyMarket.com.

Have a good weekend,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Mortgage rates reach new lows

Every Thursday Freddie Mac publishes the results of its weekly mortgage market survey. This week, for the first time in recent memory, the average rate for a 30 year fixed rate loan dipped below 5% to 4.96%. The average rate for a 15 year fixed rate loan fell to 4.65%.

Here's how the Freddie Mac survey results have trended over the last 20 weeks:

This graph shows the monthly averages for 2008 and the annual averages for every year spanning from 1992 to 2007.

Will rates trend even lower? Some people in the field think they will. Whether they do or not, the graphs above make it clear that rates right now are as good as they've ever been. If you've been thinking of buying or refinancing, you'll find these links helpful. This link includes current rates from local lenders. This link includes mortgage calculators from local lenders. You'll also find plenty of other useful links and articles on the buying real estate page at DaneCountyMarket.com.

How low will mortgage rates go?

One would think they can't get much lower than their current levels. As of this post, rates for 30 year fixed rate loans are hovering around 5% - about as low as they've ever been.

The graph below shows how rates have trended over the last 20 weeks. Note how rates have dropped by more than 1.25% since October 30th, even though rates at that time were at historically low levels.

As we noted in a recent post, we've noticed an uptick in buyer activity over the last two weeks. Not surprising at all given how far rates have dropped.

For more mortgage-related information, visit these links on the buying real estate page at DaneCountyMarket.com:

• How mortgage rates have changed over time
• Mortgage rates updated daily

Mortgage rates fell today

Mortgage rates for 30 year fixed-rate loans fell well below 6% today. If you've been thinking of buying or refinancing, it's a good time to stay in touch with your lender. You can also track rates from local lenders on our mortgage update page at DaneCountyMarket.com.

Subprime loans still a factor in Wisconsin

Here's an interesting article from Paul Gores of the Milwaukee Journal Sentinel. From the article:

• Wisconsin subprime lending as a percentage of all mortgage loans exceeded the national average in 2006 and 2007.
• In 2007, subprime loans made up 17% of all Wisconsin loans, compared to 14.9% for the nation as a whole.
• In 2006, subprime loans made of 39.3% of all Wisconsin loans, compared to 37% nationally.
• Adjustable interest rates are scheduled to reset on 30.2% of Wisconsin's subprime loans over the next 12 months, compared to 27.8% nationally.
• Research suggests that a 1% increase in unemployment rates raises home foreclosures in a county by 3% to 9%.

The numbers, from Russ Kashian of the University of Wisconsin - Whitewater, suggest that Wisconsin foreclosures will continue to exist at high levels over the next year or two. Our preliminary review of October data shows that Dane County foreclosures reached a new high last month. We'll be publishing the October data soon.

Local bank to participate in TARP program?

According to this article by Marv Balousek of the Wisconsin State Journal, Marshall & Illsey Corp. has received preliminary approval to participate in the new Troubled Asset Relief Program (TARP).

On a related note, our preliminary review of the latest foreclosure numbers indicates that Dane County foreclosures will reach a new high during the month of October. We'll have the final numbers in a couple of weeks.

Credit crunch? - part 2

Marv Balousek from the Wisconsin State Journal interviews several local lending professionals in this article. Takeaways:

• Lending standards have tightened, but mortgages are available for those with good credit, a good job, and a good down payment.
• Conventional financing with no down payment is no longer available, although zero down loans are available through the Veterans Administration and Rural Development programs.
• Other loan programs, such as the Federal Housing Administration program, now offer mortgages that require a 3% down payment.

Credit crunch?

Much has been written about the global credit crunch, but my experience here in Madison is that people are able to get the loans they need when it comes to buying a house or car. I'm working with first-time and relocating buyers right now, and they've been able to obtain the financing they need without any problems. I know of another person who just refinanced his home, and another who just purchased a car with dealer financing. Again, no problems.

On the flip side, WHEDA has temporarily suspended rate locks, and I do know of individuals who have recently had their home equity lines of credit frozen by national lenders.

But all-in-all there are still plenty of mortgage options available for those with good credit. In fact in the month of September we witnessed a huge influx of first-time home buyers who took advantage of the $7,500 tax credit (more on September coming soon).

If you have any questions about your mortgage options, try calling a couple of local lenders and see what they have to say about your situation. You may be pleasantly surprised by what they have to offer.

Get the latest mortgage rates with these useful links

Mortgage rates have been bouncing around lately with all that is going on in the market. Fortunately the web makes it easy to track rates on a daily basis. Here are some links from local lenders that include information on the latest rates:

• Associated Bank
• Anchor Bank
• Capitol Bank
• Great Wisconsin Credit Union
• UW Credit Union

You'll notice most of the above sites offer rate updates via email. Great Wisconsin Credit Union and UW Credit Union also offer RSS feeds for those that prefer to use a reader.

I've found all of these sites easy to use, but by no means is this an exhausitve list. If you have another useful site to share, feel free to add a comment to this blog entry or send me an email. I'll update the list above with more entries based on your recommendations.

You'll also find all of the above mortgage rate links at DaneCountyMarket.com (go to buying real estate > mortgage rates). I'll be happy to update the list at DaneCountyMarket.com, too.