If you have used your Michigan home or any home as a bank to finance your life style, now may be the time to re-evaluate your finances, your life style. I want you to be able to retire, to help your kids through school, to have no mortgage payment when you retire.
The only way to do these things is to live within your means. To spend less than you make, to save a little, to be a little more frugal. There will always be friends that make more than you, neighbors that are buying something new, or a family member that seems to be doing extremely well. GET OVER IT !!!!
America has become a competitive society. Everybody wants new and more "stuff" But does it improve your quality of life? Now is the time to plan for your future. Step back and think about were you want to be in 10, 15, 20 years. Are you ever going to be able to retire? Or are you going to be a WalMart greeter. Or the older lady showing people to a restaurant seat. Those people are not doing it to keep busy, they are doing it because they have to. They need the money.
I'm in the mortgage business. I make money off of people doing home equity loans to pay off credit cards. Don't do it. Pay those cards down, start living within your means. Your life will be less stressful and less demanding if you quit trying to keep up with the Jones. For more on Michigan mortgages, improving your credit score, or Metro Detroit Real Estate feel free to go to my website www.RussRavary.com Have a great day Russ Ravary
Saturday, February 23, 2008
Wednesday, February 20, 2008
Isn't this the craziest thing?
Is this the craziest thing?
Banks are doing the dumbest things lately.
For example. I have a borrower who has $30,000 saved up. He wants to use some of it for a down payment. But he can't qualify for the program. You see the guidelines for the program say they will only loan him 95% if only he doesn't have any money. He has to show nothing and that he is going to borrow the money from somebody else. No isn't that dumb? They won't do a home loan for somebody that has saved the money but, will loan it to somebody that hasn't.
Another example is the My community program. They will loan 95% if you are under a certain income. But my borrower makes too much money. He makes over $70,000 a year. The guidelines say he can't fit into that program, believe it not he makes too much money!!! No isn't that dumb, they will put somebody into a loan if they make a little bit of money. They will stretch their finances, but NO DON'T EVER LOAN MONEY TO SOMEBODY THAT MAKES TO MUCH EACH YEAR. Now isn't that dumb.
Another example is my buyer wants to buy a house for $181,250 and put 5% down. We got such a great deal that other comparable homes in the were selling for more. The home was brand new, and appraised for more than the selling price. It appraised for $190,000. 4.6% more than the purchase price. You are going to love this one. The bank has to deduct 5% from the loan amount because Detroit is a declining market. The appraiser did his job right and even though the bank is letting other appraisals slide. (Everybody knows Detroit and other areas around the country are declining markets)
So they will only loan 90% on a person that has money saved, has a down payment, makes good money, has great credit scores, and the house value is greater than the purchase price.
But they will loan 95% to people that make less, have less saved and No money for a down payment. ISN'T THAT DUMB.... Try explaining this whole scenario to the guy that was turned down. I don't understand it, how can the borrower.
And we wonder why there are so many foreclosures around the country. They make it hard for a good credit risk person to get a loan and loan the money out to higher credit risks. You have to love it.
To top it off I sent this to a bank official that denied this loan and wouldn't do it.... He laughed about it. He basically said rules are rules. That's why we survive.
I sent the loan to a different bank first thing this morning and got an approval for the loan. Quicker service, less grief, and nicer. My client is happier with this new bank and their ability to give him the 95%.
For more on Michigan Mortgages, Credit and credit scores, mortgage information and Michigan real estate go to www.RussRavary.com
Banks are doing the dumbest things lately.
For example. I have a borrower who has $30,000 saved up. He wants to use some of it for a down payment. But he can't qualify for the program. You see the guidelines for the program say they will only loan him 95% if only he doesn't have any money. He has to show nothing and that he is going to borrow the money from somebody else. No isn't that dumb? They won't do a home loan for somebody that has saved the money but, will loan it to somebody that hasn't.
Another example is the My community program. They will loan 95% if you are under a certain income. But my borrower makes too much money. He makes over $70,000 a year. The guidelines say he can't fit into that program, believe it not he makes too much money!!! No isn't that dumb, they will put somebody into a loan if they make a little bit of money. They will stretch their finances, but NO DON'T EVER LOAN MONEY TO SOMEBODY THAT MAKES TO MUCH EACH YEAR. Now isn't that dumb.
Another example is my buyer wants to buy a house for $181,250 and put 5% down. We got such a great deal that other comparable homes in the were selling for more. The home was brand new, and appraised for more than the selling price. It appraised for $190,000. 4.6% more than the purchase price. You are going to love this one. The bank has to deduct 5% from the loan amount because Detroit is a declining market. The appraiser did his job right and even though the bank is letting other appraisals slide. (Everybody knows Detroit and other areas around the country are declining markets)
So they will only loan 90% on a person that has money saved, has a down payment, makes good money, has great credit scores, and the house value is greater than the purchase price.
But they will loan 95% to people that make less, have less saved and No money for a down payment. ISN'T THAT DUMB.... Try explaining this whole scenario to the guy that was turned down. I don't understand it, how can the borrower.
And we wonder why there are so many foreclosures around the country. They make it hard for a good credit risk person to get a loan and loan the money out to higher credit risks. You have to love it.
To top it off I sent this to a bank official that denied this loan and wouldn't do it.... He laughed about it. He basically said rules are rules. That's why we survive.
I sent the loan to a different bank first thing this morning and got an approval for the loan. Quicker service, less grief, and nicer. My client is happier with this new bank and their ability to give him the 95%.
For more on Michigan Mortgages, Credit and credit scores, mortgage information and Michigan real estate go to www.RussRavary.com
Monday, February 18, 2008
How are you going to buy a home?
Banks have tightened up the guidelines to buy a home. That doesn't mean you can't buy a home. I think it is good they have gotten a little tougher with the guidelines. America has been on a shopping spree for too long. Many home owners have used their home to finance their life style and now the bank is closed. They are having to give up the home becuase they can't refinance. They are going into foreclosure.
I feel that your goal when you buy a home is to pay off as much of that mortgage as you can before your retire. To be mortgage free if you can in your retirement years. This mortgage crisis is going to make people live within their means more, they can't borrow against their house.
What is means to you as a new home buyer is that you have to save a little to put a downpayment on a house. Sure you can't buy right away. Sure you can't have instant gratification of your wants. But it is going to teach you to save to acquire the things you want. That is a good thing. Many homes that went into foreclosure were in a state of disrepair. the homeowners couldn't afford to fix things.
If you can't come up with $5,000 to fix the furnace, or $8,000 to get a roof then you really should not be in that house. Those are necessary repairs. By learning to save for a downpayment will help you in the long run.
For more on mortgages, credit and credit scoring, buyers tips go to my website Michigan homes for sale at www.RussRavary.com
I feel that your goal when you buy a home is to pay off as much of that mortgage as you can before your retire. To be mortgage free if you can in your retirement years. This mortgage crisis is going to make people live within their means more, they can't borrow against their house.
What is means to you as a new home buyer is that you have to save a little to put a downpayment on a house. Sure you can't buy right away. Sure you can't have instant gratification of your wants. But it is going to teach you to save to acquire the things you want. That is a good thing. Many homes that went into foreclosure were in a state of disrepair. the homeowners couldn't afford to fix things.
If you can't come up with $5,000 to fix the furnace, or $8,000 to get a roof then you really should not be in that house. Those are necessary repairs. By learning to save for a downpayment will help you in the long run.
For more on mortgages, credit and credit scoring, buyers tips go to my website Michigan homes for sale at www.RussRavary.com
Friday, February 15, 2008
Mortgage delinquencies and foreclosures continue to rise
According to an article on CNN Money Countrywide's Mortgage foreclosures and delinquencies continued to rise in January. Another article said that the median home price in Lansing, Michigan fell 18% to 109,600 in the fourth quarter of last year.
That is what I believe is in store for us all year. I believe home prices will continue to fall, there will be more foreclosures on the Michigan real estate market. I believe the overly optimistic stance by many realtors that the real estate market will start turning around in the last quarter of the year is wrong. It is going to take time to work out of this mess.
The fed may continue to drop the fed rate, but I don't know what affect it will have on the mortgage interest rates. They have dropped it quite a bit already, but as of today's mortgage rates are higher than when the fed dropped thefed rate the first time this year. For more on the difference between the fed rate and mortgage interest rates you can go to my other blog www.activerain.com/blogs/russravary look on the right hand side for "fed rate" or "difference between"
Gambling on whether mortgage interest rates will come down more is like gambling on whether a stock will go up on a certain day. If you can lock in a good mortgage rate lock it in, don't be a glutton waiting for the bottom. It may never come. Some "experts" believe the mortgage interest rates may go up instead of down. Who knows which way they may go, it is anybody's guess. For more on mortgages, Michigan foreclosures, or Michigan homes for sale go to www.RussRavary.com
That is what I believe is in store for us all year. I believe home prices will continue to fall, there will be more foreclosures on the Michigan real estate market. I believe the overly optimistic stance by many realtors that the real estate market will start turning around in the last quarter of the year is wrong. It is going to take time to work out of this mess.
The fed may continue to drop the fed rate, but I don't know what affect it will have on the mortgage interest rates. They have dropped it quite a bit already, but as of today's mortgage rates are higher than when the fed dropped thefed rate the first time this year. For more on the difference between the fed rate and mortgage interest rates you can go to my other blog www.activerain.com/blogs/russravary look on the right hand side for "fed rate" or "difference between"
Gambling on whether mortgage interest rates will come down more is like gambling on whether a stock will go up on a certain day. If you can lock in a good mortgage rate lock it in, don't be a glutton waiting for the bottom. It may never come. Some "experts" believe the mortgage interest rates may go up instead of down. Who knows which way they may go, it is anybody's guess. For more on mortgages, Michigan foreclosures, or Michigan homes for sale go to www.RussRavary.com
Wednesday, February 13, 2008
President Bush's economic stimulus plan
What does President Bush's economic stimulus plan mean to the Metro Detroit area and how soon can we expect the changes to occur?
Everything is uncertain as how it will affect Detroit and the Detroit suburbs? FHA, Fannie Mae, and Freddie Mac are the government and quasi government agencys that now have to set guidelines for mortgages. It may take time for those agencies to come up with guidelines.
Some of the issues that have to determine is which areas are high cost areas, which area will be included in the changes, what is the median home cost. All of these factors will determine whether Detroit and metro Detroit mortgage holders will benefit from the plan.
Even after FHA, Fannie Mae, and Freddie Mac determine the new mortgage guidelines, the banks have to set their guidelines. One bank even sent out an email stating that they have to determine the impact the guidelines have. The banks owe it to their share holders to minimize risk and make money. So you may see some banks still shy away from those big loans. Would you as a big bank want to put $600 -$700,00 at risk at one loan or would you rather do 3 $200,000 loans. It is in the banks best interest to spread the risk amongst 3 loans than 1 big one. I bet that you will see a higher rate from the banks for the high loan amounts. Only time will tell. I'm just guessing, but whatever the outcome there will be people that benifit from the plan. No it will not solve all the problems, but it is a start. I hope for the people of Detroit, the people that live in Metro Detroit suburbs that they get relieve in this mortgage crisis. Have a great day. Russ Ravary. For more on Michigan mortgages, house hunting tips, buying a condo (what you should think about) go to my website www.russravary.com
Everything is uncertain as how it will affect Detroit and the Detroit suburbs? FHA, Fannie Mae, and Freddie Mac are the government and quasi government agencys that now have to set guidelines for mortgages. It may take time for those agencies to come up with guidelines.
Some of the issues that have to determine is which areas are high cost areas, which area will be included in the changes, what is the median home cost. All of these factors will determine whether Detroit and metro Detroit mortgage holders will benefit from the plan.
Even after FHA, Fannie Mae, and Freddie Mac determine the new mortgage guidelines, the banks have to set their guidelines. One bank even sent out an email stating that they have to determine the impact the guidelines have. The banks owe it to their share holders to minimize risk and make money. So you may see some banks still shy away from those big loans. Would you as a big bank want to put $600 -$700,00 at risk at one loan or would you rather do 3 $200,000 loans. It is in the banks best interest to spread the risk amongst 3 loans than 1 big one. I bet that you will see a higher rate from the banks for the high loan amounts. Only time will tell. I'm just guessing, but whatever the outcome there will be people that benifit from the plan. No it will not solve all the problems, but it is a start. I hope for the people of Detroit, the people that live in Metro Detroit suburbs that they get relieve in this mortgage crisis. Have a great day. Russ Ravary. For more on Michigan mortgages, house hunting tips, buying a condo (what you should think about) go to my website www.russravary.com
Northville Real Estate
Latest Maple Hill Subdivision Neighborhood Update, Northville, MI as of January 1, 2008 There is 1 Northville home currently for sale in the sub. The average list price is $395,000 and on the average has been on the market for 285 days
Price-Address-Bed
$395,000-17333 VICTOR CT-3
IF YOU OR ONE OF YOUR FRIENDS, OR CHILDREN WOULD LIKE TO SEE ONE OF THESE LOVELY NORTHVILLE HOMES EMAIL ME AT INFO@RUSSRAVARY.COM OR CALL ME ON MY CELL AT 313-310-9855
Here are all the Northville homes that have sold in Maple Hill, Northville, MI in the last year as of 1/1/2008
Price-Address-Bed-Sold Date
$292,000-17870 MAPLE HILL DR-4-9/25/2007
$307,500-17236 CAMERON DR-4-8/3/2007
$317,667-17540 MAPLE HILL DR-3-11/25/2007
$335,000-17200 VICTOR DR-4-5/31/2007
$345,000-17892 MAPLE HILL DR-3-1/3/2007
$349,000-17871 MAPLE HILL DR-3-7/24/2007
$350,000-17305 MAPLE HILL DR-4-11/12/2007
$368,000-17280 SUMMIT DR-4-5/23/2007
$380,000-17800 MAPLE HILL DR-4-6/10/2007
$380,000-17265 MAPLE HILL DR-4-10/2/2007
$390,000-17297 VICTOR CT-4-2/12/2007
1 Northville home has sold Maple Hill Subdivision in the last year with an average price of $346,742 after being on the market an average of 110 days.
Remember when you price your Northville home right it will not sit on the market as long. So if you have to move call me for the latest comparative market analysis (CMA) of your Wayne County Subdivision or Oakland County subdivision.
If you want other Northville subdivisions or City of Northville, MI info go to my website http://www.russravary.com/ You can get buyers tips, sellers tips, or search Michigan homes for sale for free without giving any personal contact info or logging in! IF YOU WANT A NEIGHBORHOOD UPDATE FOR YOUR SUBDIVISION EMAIL ME AT INFO@RUSSRAVARY.COM I hope this Michigan neighborhood newsletter helped you! And helps keep you up to date. If you are thinking of selling a home give me a call or email me at info@russravary.com Or if you know somebody that is looking to buy a home I will help them search out a good deal. Have a great day. Russ Ravary
Latest Maple Hill Subdivision Neighborhood Update, Northville, MI as of January 1, 2008 There is 1 Northville home currently for sale in the sub. The average list price is $395,000 and on the average has been on the market for 285 days
Price-Address-Bed
$395,000-17333 VICTOR CT-3
IF YOU OR ONE OF YOUR FRIENDS, OR CHILDREN WOULD LIKE TO SEE ONE OF THESE LOVELY NORTHVILLE HOMES EMAIL ME AT INFO@RUSSRAVARY.COM OR CALL ME ON MY CELL AT 313-310-9855
Here are all the Northville homes that have sold in Maple Hill, Northville, MI in the last year as of 1/1/2008
Price-Address-Bed-Sold Date
$292,000-17870 MAPLE HILL DR-4-9/25/2007
$307,500-17236 CAMERON DR-4-8/3/2007
$317,667-17540 MAPLE HILL DR-3-11/25/2007
$335,000-17200 VICTOR DR-4-5/31/2007
$345,000-17892 MAPLE HILL DR-3-1/3/2007
$349,000-17871 MAPLE HILL DR-3-7/24/2007
$350,000-17305 MAPLE HILL DR-4-11/12/2007
$368,000-17280 SUMMIT DR-4-5/23/2007
$380,000-17800 MAPLE HILL DR-4-6/10/2007
$380,000-17265 MAPLE HILL DR-4-10/2/2007
$390,000-17297 VICTOR CT-4-2/12/2007
1 Northville home has sold Maple Hill Subdivision in the last year with an average price of $346,742 after being on the market an average of 110 days.
Remember when you price your Northville home right it will not sit on the market as long. So if you have to move call me for the latest comparative market analysis (CMA) of your Wayne County Subdivision or Oakland County subdivision.
If you want other Northville subdivisions or City of Northville, MI info go to my website http://www.russravary.com/ You can get buyers tips, sellers tips, or search Michigan homes for sale for free without giving any personal contact info or logging in! IF YOU WANT A NEIGHBORHOOD UPDATE FOR YOUR SUBDIVISION EMAIL ME AT INFO@RUSSRAVARY.COM I hope this Michigan neighborhood newsletter helped you! And helps keep you up to date. If you are thinking of selling a home give me a call or email me at info@russravary.com Or if you know somebody that is looking to buy a home I will help them search out a good deal. Have a great day. Russ Ravary
Lakes of Northville subdivision real estate update, Northville Township, MI
Northville Township Real Estate
Latest Lakes of Northville Subdivision Neighborhood Update, Northville, MI as of January 1, 2008
There are 6 Northville Township homes currently for sale in the sub. The average list price is $332,267 and on the average has been on the market for 226 days
Price-Address-Bed
$2,200-41584 WATERFALL RD-3
$294,900-41881 PON MEADOW DR-4
$310,000-41934 PONMEADOW-3
$325,000-42400 BRADNER RD-4
$325,900-17148 PON VALLEY DR-4
$337,900-41584 WATERFALL RD-3
$399,900-42359 BRADNER-4
IF YOU OR ONE OF YOUR FRIENDS, OR CHILDREN WOULD LIKE TO SEE ONE OF THESE LOVELY NORTHVILLE HOMES EMAIL ME AT INFO@RUSSRAVARY.COM OR CALL ME ON MY CELL AT 313-310-9855
Here are all the Northville Township homes that have sold in Lakes of Northville, Northville, MI in the last year as of 1/1/2008
Status-Price-Address-Bed-Sold Date
Leased-$1,850-42092 N WATERWHEEL CT-4-8/31/2007
Leased-$2,100-42155 WATERFALL RD-4-4/15/2007
SOLD-$257,500-17233 LILYPAD CT-4-5/19/2007
SOLD-$301,500-42016 CRESTVIEW CIR-4-10/15/2007
SOLD-$315,000-42063 CRESTVIEW CIR-3-8/10/2007
SOLD-$315,000-18080 WINCHESTER-4-9/13/2007
SOLD-$325,000-42035 CRESTVIEW CIR-4-6/5/2007
SOLD-$331,500-41473 WATERFALL RD-4-10/26/2007
SOLD-$332,000-42144 CRESTVIEW CIR-4-4/10/2007
SOLD-$333,000-17732 FARMCREST CT-4-8/3/2007
SOLD-$380,000-42164 N WATERWHEEL CT-5-3/8/2007
3 Northville Township homes have sold in Lakes of Northville subdivision the last year with an average price of $236,667 after being on the market an average of 124 days.
Remember when you price your Northville home right it will not sit on the market as long. So if you have to move call me for the latest comparative market analysis (CMA) of your Wayne County Subdivision or Oakland County subdivision.
If you want other Northville subdivisions or City of Northville, MI info go to my website http://www.russravary.com/ You can get buyers tips, sellers tips, or search Michigan homes for sale for free without giving any personal contact info or logging in! IF YOU WANT A NEIGHBORHOOD UPDATE FOR YOUR SUBDIVISION EMAIL ME AT INFO@RUSSRAVARY.COM I hope this neighborhood newsletter helped you! And helps keep you up to date. If you are thinking of selling a Michigan home give me a call or email me at info@russravary.com Or if you know somebody that is looking to buy a home I will help them search out a good deal. Have a great day. Russ Ravary
Latest Lakes of Northville Subdivision Neighborhood Update, Northville, MI as of January 1, 2008
There are 6 Northville Township homes currently for sale in the sub. The average list price is $332,267 and on the average has been on the market for 226 days
Price-Address-Bed
$2,200-41584 WATERFALL RD-3
$294,900-41881 PON MEADOW DR-4
$310,000-41934 PONMEADOW-3
$325,000-42400 BRADNER RD-4
$325,900-17148 PON VALLEY DR-4
$337,900-41584 WATERFALL RD-3
$399,900-42359 BRADNER-4
IF YOU OR ONE OF YOUR FRIENDS, OR CHILDREN WOULD LIKE TO SEE ONE OF THESE LOVELY NORTHVILLE HOMES EMAIL ME AT INFO@RUSSRAVARY.COM OR CALL ME ON MY CELL AT 313-310-9855
Here are all the Northville Township homes that have sold in Lakes of Northville, Northville, MI in the last year as of 1/1/2008
Status-Price-Address-Bed-Sold Date
Leased-$1,850-42092 N WATERWHEEL CT-4-8/31/2007
Leased-$2,100-42155 WATERFALL RD-4-4/15/2007
SOLD-$257,500-17233 LILYPAD CT-4-5/19/2007
SOLD-$301,500-42016 CRESTVIEW CIR-4-10/15/2007
SOLD-$315,000-42063 CRESTVIEW CIR-3-8/10/2007
SOLD-$315,000-18080 WINCHESTER-4-9/13/2007
SOLD-$325,000-42035 CRESTVIEW CIR-4-6/5/2007
SOLD-$331,500-41473 WATERFALL RD-4-10/26/2007
SOLD-$332,000-42144 CRESTVIEW CIR-4-4/10/2007
SOLD-$333,000-17732 FARMCREST CT-4-8/3/2007
SOLD-$380,000-42164 N WATERWHEEL CT-5-3/8/2007
3 Northville Township homes have sold in Lakes of Northville subdivision the last year with an average price of $236,667 after being on the market an average of 124 days.
Remember when you price your Northville home right it will not sit on the market as long. So if you have to move call me for the latest comparative market analysis (CMA) of your Wayne County Subdivision or Oakland County subdivision.
If you want other Northville subdivisions or City of Northville, MI info go to my website http://www.russravary.com/ You can get buyers tips, sellers tips, or search Michigan homes for sale for free without giving any personal contact info or logging in! IF YOU WANT A NEIGHBORHOOD UPDATE FOR YOUR SUBDIVISION EMAIL ME AT INFO@RUSSRAVARY.COM I hope this neighborhood newsletter helped you! And helps keep you up to date. If you are thinking of selling a Michigan home give me a call or email me at info@russravary.com Or if you know somebody that is looking to buy a home I will help them search out a good deal. Have a great day. Russ Ravary
Tuesday, February 12, 2008
The death of 100% mortgages
We got an email today stating that after March 1, the PMI company will no longer insure over 97.01%.. What that means to the consumer is the only way you can get an 100% mortgage is if you can find a company to do a 80% first and a 20% second (80/20 loan). That is not likely in our market right now. Very few if any banks are doing a 100% loans any more. So if you are thinking of buying a home this year, start saving money. You will either need to borrow 3% from a relative or have 3% of the purchase price in your savings account. FHA loans may become very popular. For more on credit scores, mortgages, buying foreclosures, FSBO's, negotiating tips, and Michigan real estate go to my website www.RussRavary.com
Monday, February 11, 2008
4 things to do before buying a home
1. You should, get preapproved for a mortgage before you go looking for a home.
Pre-approval is easy, and you can be relaxed when shopping for your new home. Your local mortgage broker can provide you with written preapproval for you at no cost and no obligation, and it can all be done quite easily over-the-phone or via email. Do not pay to submit an application! Most Real estate agents want you to have a pre-approval letter before you start looking for a home.
2. Know what monthly payment you can feel comfortable with.
When you discuss mortgage preapproval with your bank or Mortgage broker, find out what amount you qualify for. But you should have determine what kind of monthly mortgage payment you can afford each month yourself first. Many banks and lenders will give you an approval for a bigger amount, but you have to be smart. Just because they give you a bigger amount doesn't mean you should take it. It is just like a credit card. Just because your limit is $30,000 doesn't mean you should spend that much. Your credit situation may give you a pre-approval amount that is higher (or lower) than the amount of money you would want to pay out each month. By talking with your mortgage broker or bank to determine what this payment amount is, and what value of home this translates into at today's rates, you won't waste time looking at homes that are not in your price range.
3. You should be thinking about your long term goals and situations, to determine the type of mortgage that will best suit your needs.
My belief is that most people should get a fixed mortgage. There are a number of questions you should be asking yourself before you commit to a certain type of mortgage and be honest with yourself! How long do you think you will own this home? Are you discliplined in saving for taxes and insurance payments? What direction are interest rates going in, and how quickly? Is your income expected to change (up or down) in the near term, impacting how much money you can comfortably afford to pay monthly? The answers to these and other questions will help you determine the most appropriate mortgage you should be seeking.
4. You should seriously consider dealing with a Mortgage Expert that you are comfortable with. Consider dealing only with a professional who specializes in mortgages that is not pushy. An expert that will take the time to explain the mortgage process. Remember your home is one of the biggest investments you will make. You need to understand the mortgage and financing process.
For more on Michigan mortgages, mortgage information, and credit go to my website www.RussRavary.com Also you can view testimonials from some of my clients.
Pre-approval is easy, and you can be relaxed when shopping for your new home. Your local mortgage broker can provide you with written preapproval for you at no cost and no obligation, and it can all be done quite easily over-the-phone or via email. Do not pay to submit an application! Most Real estate agents want you to have a pre-approval letter before you start looking for a home.
2. Know what monthly payment you can feel comfortable with.
When you discuss mortgage preapproval with your bank or Mortgage broker, find out what amount you qualify for. But you should have determine what kind of monthly mortgage payment you can afford each month yourself first. Many banks and lenders will give you an approval for a bigger amount, but you have to be smart. Just because they give you a bigger amount doesn't mean you should take it. It is just like a credit card. Just because your limit is $30,000 doesn't mean you should spend that much. Your credit situation may give you a pre-approval amount that is higher (or lower) than the amount of money you would want to pay out each month. By talking with your mortgage broker or bank to determine what this payment amount is, and what value of home this translates into at today's rates, you won't waste time looking at homes that are not in your price range.
3. You should be thinking about your long term goals and situations, to determine the type of mortgage that will best suit your needs.
My belief is that most people should get a fixed mortgage. There are a number of questions you should be asking yourself before you commit to a certain type of mortgage and be honest with yourself! How long do you think you will own this home? Are you discliplined in saving for taxes and insurance payments? What direction are interest rates going in, and how quickly? Is your income expected to change (up or down) in the near term, impacting how much money you can comfortably afford to pay monthly? The answers to these and other questions will help you determine the most appropriate mortgage you should be seeking.
4. You should seriously consider dealing with a Mortgage Expert that you are comfortable with. Consider dealing only with a professional who specializes in mortgages that is not pushy. An expert that will take the time to explain the mortgage process. Remember your home is one of the biggest investments you will make. You need to understand the mortgage and financing process.
For more on Michigan mortgages, mortgage information, and credit go to my website www.RussRavary.com Also you can view testimonials from some of my clients.
Sunday, February 10, 2008
Adjustable Rate Mortgages
I was on www.Activerain.com (another blogging site) this morning and read a blog from a mortgage person recommending or promoting adjustable rate mortgages. He was partially right in some aspects. Yes some adjustable rate mortgages rates are better than a 30 year fixed rate right now. Yes you can save money. Yes if your plans are to move in 3 or 5 years it may be a good alternative.
HOWEVER, ADJUSTABLE RATE MORTGAGES HAVE GOTTEN MANY PEOPLE IN TROUBLE. You have to look at the down side that is possible. Not just at how much you are going to save. You have to think what happens if I can't refinance later on because the rates have gone up. Or you can't refinance because the home value has gone down. ( like right now)
I am an old school person. I believe you should be trying to pay off your mortgage, not have a mortgage when you retire. I believe more in a 30 year fixed mortgage, though there are cases when a Adjustable rate mortgage is okay. An adjustable rate mortgage is okay if you plan on selling before the rate adjusts. But for me to promote them as a great way to no. No way, no how.
For more on Michigan mortgages, Michigan real estate, and Michigan things to do
go to www.russravary.com
Have a great day. Russ Ravary
HOWEVER, ADJUSTABLE RATE MORTGAGES HAVE GOTTEN MANY PEOPLE IN TROUBLE. You have to look at the down side that is possible. Not just at how much you are going to save. You have to think what happens if I can't refinance later on because the rates have gone up. Or you can't refinance because the home value has gone down. ( like right now)
I am an old school person. I believe you should be trying to pay off your mortgage, not have a mortgage when you retire. I believe more in a 30 year fixed mortgage, though there are cases when a Adjustable rate mortgage is okay. An adjustable rate mortgage is okay if you plan on selling before the rate adjusts. But for me to promote them as a great way to no. No way, no how.
For more on Michigan mortgages, Michigan real estate, and Michigan things to do
go to www.russravary.com
Have a great day. Russ Ravary
Saturday, February 9, 2008
Tougher refinancing rules for Michigan Mortgages
New guidelines in the mortgage industry is making it tougher for many people to refinance or purchase a home. 100% loans are just about a thing of the past. The reason why is that Lenders have categorized much of Michigan as a "declining market" What that means is that Michigan home values are falling. Lenders are worried that if they make a 100% loan it may only be worth 95%. So what the lenders are doing is taking 5% off of the maximum value they will loan. So many banks and lenders will only 95% of the appraised value or the purchase price of the home.
Home equity lines are getting tougher to get. Chase will now only do 75% home equity loans in Michigan. Countrywide Home Loans sent out about 200,000 letters to clients across the country. They closed down the clients home equity lines. They just closed them down and the clients are out of luck. No warning. You do not have any available credit anymore on your home if you got one of those letters. I believe you will see many lenders following suit on high percentage home loans over the next few years. Home equity loans have some of the highest foreclosure and deliquency rates. So banks are going to be more careful about granting a home loan. For more on Michigan mortgages, credit scoring, and Michigan real estate go to my website www.russravary.com. Southeastern Michigan's #1 informational real estate and mortgage site. Have a great day Russ Ravary
Home equity lines are getting tougher to get. Chase will now only do 75% home equity loans in Michigan. Countrywide Home Loans sent out about 200,000 letters to clients across the country. They closed down the clients home equity lines. They just closed them down and the clients are out of luck. No warning. You do not have any available credit anymore on your home if you got one of those letters. I believe you will see many lenders following suit on high percentage home loans over the next few years. Home equity loans have some of the highest foreclosure and deliquency rates. So banks are going to be more careful about granting a home loan. For more on Michigan mortgages, credit scoring, and Michigan real estate go to my website www.russravary.com. Southeastern Michigan's #1 informational real estate and mortgage site. Have a great day Russ Ravary
Thursday, February 7, 2008
FHA Refinancing
If you have a FHA mortgage you may still be able to refinance even though your home value has fallen. FHA does streamline refinances. Which means that you may be able to refinance your home without getting an appraisal. What you need to have is good credit for the last year. You may be able to have a few credit blemishes. Take the time and see a mortgage person or Loan officer to see if you qualify.
Too many people assume they can not refi. Take the time and go to a mortgage broker. They usually don't charge to review your situation. The biggest thing is don't be sucked into a higher rate or higher payment. Do not pay high fees or an application fee. There is no sense in giving somebody an application fee if it can not be done. There are many lenders that do not charge an application fee. You can find out whether you can refinance without paying a fee.
There are many options that may be available to you. One that many people are not taking advantage of is calling your existing lender. Call your existing lender to see if they will make your adjustable rate mortgage into a fixed rate mortgage. Some lenders are willing to do that so you do not go into foreclosure.
If you live in Michigan and have a mortgage and would like to go over your options feel free to give me a call at (313) 310-9855 or email me at info@russravary.com For more on mortgages and Michigan real estate go to my website www.russravary.com
Too many people assume they can not refi. Take the time and go to a mortgage broker. They usually don't charge to review your situation. The biggest thing is don't be sucked into a higher rate or higher payment. Do not pay high fees or an application fee. There is no sense in giving somebody an application fee if it can not be done. There are many lenders that do not charge an application fee. You can find out whether you can refinance without paying a fee.
There are many options that may be available to you. One that many people are not taking advantage of is calling your existing lender. Call your existing lender to see if they will make your adjustable rate mortgage into a fixed rate mortgage. Some lenders are willing to do that so you do not go into foreclosure.
If you live in Michigan and have a mortgage and would like to go over your options feel free to give me a call at (313) 310-9855 or email me at info@russravary.com For more on mortgages and Michigan real estate go to my website www.russravary.com
Tuesday, February 5, 2008
Foreclosure looming?
Are you behind in mortgage payments? Your financial life and world spinning out of control? Are you overwhelmed by all your debts? You should check out all your options. Go see a debt counselor and go see a bankruptcy attorney. Tell them both that you are seeing the other one before you make a decision what to do. Bankruptcy would be the easiest way to start over and get back on your financial feet. Yes, it will take time to get your credit scores back and you will not be able to buy a car or get credit cards for a few years. You need to make a plan to be sure you are covered in those aspects.
If you let your home go into foreclosure you will not be liable to the mortgage payments any longer, but the bank may send you a 1099 for the money they forgive. Can you afford to pay the extra taxes. You may also want to see your tax person to see the consequences of getting a 1099.
The other option with the debt counselor: Can you make the payments they set up? They will most likely negotiate with your creditors to get a lower balance and lower interest rate. Remember as soon as you sign up with the debt counselor and they negotiate with your creditors it will show up on your credit report. A debt counselar is a negative to lenders. Remember why would they loan you more money if you need a debt counselor to pay the debt you have.
What ever you do, explore your choices. Then make a sound decision on what you can do. The sooner you start the sooner you get back on the path of good credit. For more on credit scores, and Michigan mortgages go to my website www.RussRavary.com
If you let your home go into foreclosure you will not be liable to the mortgage payments any longer, but the bank may send you a 1099 for the money they forgive. Can you afford to pay the extra taxes. You may also want to see your tax person to see the consequences of getting a 1099.
The other option with the debt counselor: Can you make the payments they set up? They will most likely negotiate with your creditors to get a lower balance and lower interest rate. Remember as soon as you sign up with the debt counselor and they negotiate with your creditors it will show up on your credit report. A debt counselar is a negative to lenders. Remember why would they loan you more money if you need a debt counselor to pay the debt you have.
What ever you do, explore your choices. Then make a sound decision on what you can do. The sooner you start the sooner you get back on the path of good credit. For more on credit scores, and Michigan mortgages go to my website www.RussRavary.com
Monday, February 4, 2008
Should I refinance part 2
So you are thinking about refinancing. If you are in a fixed mortgage and have been in the mortgage for 3 or 4 years it may not make sense to refinance.
You have to work the numbers. Lets say you are going to save $50 a month, it is a no-closing cost loan, and you have been in your other mortgage for 4 years. So what you do is multiply your mortgage savings a month by the number of months left. So 26 years times 12 months a year times $50= $15,600 savings
But you are going to have a $200,000 at 5.75% and now you are back to 30 years. You have 4 extra years of mortgage. So what you do is multiply $200,000 times .0575 times 4 years= 46,000 in interest costs.
So sure you are saving $50 a month but you are adding on 4 years and $46,000 in interest.
That doesn't make sense financially.
If you live in Michigan and want to find out if refinancing is good for you email me at info@russravary.com For more Michigan mortgage articles and mortgage info feel free to go to my website www.russravary.com
You have to work the numbers. Lets say you are going to save $50 a month, it is a no-closing cost loan, and you have been in your other mortgage for 4 years. So what you do is multiply your mortgage savings a month by the number of months left. So 26 years times 12 months a year times $50= $15,600 savings
But you are going to have a $200,000 at 5.75% and now you are back to 30 years. You have 4 extra years of mortgage. So what you do is multiply $200,000 times .0575 times 4 years= 46,000 in interest costs.
So sure you are saving $50 a month but you are adding on 4 years and $46,000 in interest.
That doesn't make sense financially.
If you live in Michigan and want to find out if refinancing is good for you email me at info@russravary.com For more Michigan mortgage articles and mortgage info feel free to go to my website www.russravary.com
Friday, February 1, 2008
Should I refinance?
Whether you should refinance your mortgage is simply a numbers game. Does it make sense financially to do it? Will it reduce your payment? Will it shorten years off your mortgage? What will be the payback? You have to figure out what the closing costs will be versus how much you will save each month. For example if you are going to save 50 dollars a month and it is going to cost $1600.00 to refinance. Then your payback time is 32 months ($1600 divided by $50). So you will not be saving any money until the 33rd month. If you sell or refinance again before 32 months you will have wasted your money!
Take the time to figure out what you are saving. Sit down with your mortgage broker, bank loan officer to go over the numbers. Then make a solid decision based on the numbers! If you are a Michigan home owner and would like to find out whether it makes sense for you to refinance your mortgage give me a call on my cell at (313) 310-9855 or email me at ourmortgageguy@yahoo.com Feel free to visit my website at www.russravary.com for more mortgage information, types of loans available, and Michigan real estate
Take the time to figure out what you are saving. Sit down with your mortgage broker, bank loan officer to go over the numbers. Then make a solid decision based on the numbers! If you are a Michigan home owner and would like to find out whether it makes sense for you to refinance your mortgage give me a call on my cell at (313) 310-9855 or email me at ourmortgageguy@yahoo.com Feel free to visit my website at www.russravary.com for more mortgage information, types of loans available, and Michigan real estate
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