How to Reduce Your Michigan Mortgage
One Additional Mortgage Payment a Year
There's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars. The trick is to make one extra mortgage payment a year and apply that payment toward your loan's principal.
This is the method being used by "Bi-Weekly Mortgage Reduction Services or mortgage saving programs". What they are doing is taking your 1/2 your mortgage payment every two weeks holding on to it until you send the other half and then sending it in. You are doing that 26 times a year. So it adds up to one extra mortgage payment a year. For that they charge you a set up fee of $75 - $500. And about $3-7 dollars each time you send money in. It costs you a approx $182 a year to do it. Over the length of the loan it cost you $4500 to do it. If you are disciplined you can do it yourself and save the $4500. Only, when you do it yourself, you don't pay a third party unnecessary set-up costs and fees! If you pay an extra payment at the beginning of the year it is better because it is that much less that interest is accruing on. So you are paying off your Michigan home quicker.
Example: $100,000 loan, 30-year mortgage, 6.5% fixed interest rate
Extra Mtg Pymts/ Year-Principal & Int-Additional Monthly Pmt-SAVINGS-Total Pd-# of yrs
0-$632.07-0-0-$227,542.98-29.92 / 359 mos.
1-$632.07-$52.68-$29,088.02-$198,454.96-24.12 / 290 mos.
2-$632.07-$105.35-$28,399.71-$181,050.85-20.5 / 246 mos.
3-$632.07-$158.02-$58,320.95-$169,222.03-17.92 / 215 mos.
4-$632.07-$210.69-$66,969.79-$160,573.19-15.92 / 191 mos.
5-$632.07-$263.36-$73,607.77-$153,935.21-14.34 / 172 mos.
Look at the savings and the final row. That is how many months you can cut your mortgage down to. Tremendous mortgage savings. What a do it yourself mortgage reduction plan!
One-time Payment
It may not be possible for you to increase your monthly mortgage payment. Keep in mind that most mortgages will permit you to make additional payments to your mortgage principal at anytime. Perhaps, five-years after moving into your home you receive a larger than expected tax return, or an inheritance or a non-taxable cash gift. You could apply this money toward your loan's principal, resulting in significant savings and a shorter loan period. Some banks will allow you to re-amortize your loan. Ask your mortgage person or lender for their rules. Where this comes in to play many times is when a seller still has his old home. When they finally sell the home then they have a large amount of cash to put on the mortgage. They don't want to refinance and be charged closing costs. Ask your bank about re-amortizing your loan.
Example:
With a $100,000, 30-year, 6.5% fixed interest rate mortgage loan, the borrower will pay a total of $227,542.98 to pay back the loan in 30 years. That equals $127,542.98 in interest payments.
If the same borrower makes a one-time $5,000 payment the first day of year 6, he/she will pay a total of $204,710.75 and pay off the loan in 27 years (324 months). That's a savings of $22,832.23 in interest. That is a huge savings for your Michigan home and you.
So the bottom line is: You don't have to pay some company to make an extra payment a year for you. You can do it. Divide your payment by 12. Add that amount to your monthly payment and pay that amount from now one. You will cut years off your mortgage and it did not cost you a dime! For more on Michigan Mortgages go to my website www.RussRavary.com
Tuesday, April 1, 2008
Sunday, March 23, 2008
Improving your credit score
You can take steps to improve your credit score. There are many variables that come into play with credit scores. Here are some good guidelines.
To get a great score is pay your bills on time, keep account balances low, and take out new credit only when you need it. People who do that faithfully have very high scores. It usually means that you use credit wisely and you are not buried in debt. Start by pulling your credit report to check your credit score to see where you are. What you're looking for on your report are factors that could be affecting your score. Look for errors in the report, such as accounts that aren't yours, late payments that were actually paid on time, debts you paid off that are shown as outstanding, or old debts that shouldn't be reported any longer (negatives are supposed to be deleted after seven years, with the exception of bankruptcies, which can stay for as long as 10 years).
Call or write each credit scoring company with the errors. Sometimes it can take up to four weeks for errors to be corrected. Be sure to have paperwork proving you paid the debt or a letter from the creditor as proof.
After repairing errors, the fastest way to a better score is paying down balances on credit cards. It is possible to increase your score 20 points by paying down your credit lines," because the credit bureaus look at how much debt you owe as compared to how much the available credit is.
If you have had a few late payments in your past get auto deduct from your checking account or savings account. If you find yourself in some financial difficulties, you can protect your score by making sure your payments don't go 29 days past due. Even if you've paid your bills late in the past, you can improve your credit score by paying every bill on time from now on. Though it will take time for the history to show up.
One thing you shouldn't do if you're just trying to boost your score is close unused accounts. It won't help you and it can hurt you. Closing unused accounts without paying down your debt changes a ratio that the credit bureaus look at. The credit bureaus look at the amount of your total debt divided by your total available credit.
When you appear closer to maxing out your accounts your score can drop. Credit scores can sometimes reflect when people are using credit cards and equity lines to stay alive financially.
The length of your credit history is another factor in your score. If you close the account of the credit card you got when you were a freshman in college and leave open the ones you just got within the last couple years, it makes you look like a much newer borrower. Keep a couple of the oldest open. Don't worry about the interest rate is, just don't use that card. Creditors don't care what the rate is., they care about the history and the length the card has been open. Creditors and mortgage companies also like to see three credit lines open for 1 to 2 years. The higher the credit limit the better they like it.
Working with credit card balances is another strategy for bringing up your score: Transfer balances from a card that's close to being maxed out to other cards to even out your usage. Or just spread out your charges between a few cards. Try to get the usage on all of them at 20 to 30 percent instead of a bunch at zero and one at 85 percent. Remember the credit reporting companies drop your score when you get close to maxing out your limit on credit cards. It is better to have 2 or 3 at 33% than one at 90%.
Rapid rescoring If you're in the middle of qualifying for a mortgage and need a score boost in a hurry, you can speed the process along with rapid rescoring. If you've got legitimate negative information on your credit report, such as late payments or accounts in collections, you're out of luck. But the process of rapid rescoring can help increase your score within a few days by correcting errors or paying off account balances.
You can't do this one yourself; you'll need a lender who is a customer of a rapid rescoring service. Generally, the service will run roughly $50 for every account on your credit report that needs to be addressed, but it could save you thousands on your loan. If a consumer can find a lender who is a customer of a rapid rescoring service, new information can be posted within 72 hours.
The bottom line, the experts say, is that you're not powerless when it comes to your credit score.
There are a lot of things you can do to improve your score. For more help email me at info@RussRavary.com or go to my website www.RussRavary.com
To get a great score is pay your bills on time, keep account balances low, and take out new credit only when you need it. People who do that faithfully have very high scores. It usually means that you use credit wisely and you are not buried in debt. Start by pulling your credit report to check your credit score to see where you are. What you're looking for on your report are factors that could be affecting your score. Look for errors in the report, such as accounts that aren't yours, late payments that were actually paid on time, debts you paid off that are shown as outstanding, or old debts that shouldn't be reported any longer (negatives are supposed to be deleted after seven years, with the exception of bankruptcies, which can stay for as long as 10 years).
Call or write each credit scoring company with the errors. Sometimes it can take up to four weeks for errors to be corrected. Be sure to have paperwork proving you paid the debt or a letter from the creditor as proof.
After repairing errors, the fastest way to a better score is paying down balances on credit cards. It is possible to increase your score 20 points by paying down your credit lines," because the credit bureaus look at how much debt you owe as compared to how much the available credit is.
If you have had a few late payments in your past get auto deduct from your checking account or savings account. If you find yourself in some financial difficulties, you can protect your score by making sure your payments don't go 29 days past due. Even if you've paid your bills late in the past, you can improve your credit score by paying every bill on time from now on. Though it will take time for the history to show up.
One thing you shouldn't do if you're just trying to boost your score is close unused accounts. It won't help you and it can hurt you. Closing unused accounts without paying down your debt changes a ratio that the credit bureaus look at. The credit bureaus look at the amount of your total debt divided by your total available credit.
When you appear closer to maxing out your accounts your score can drop. Credit scores can sometimes reflect when people are using credit cards and equity lines to stay alive financially.
The length of your credit history is another factor in your score. If you close the account of the credit card you got when you were a freshman in college and leave open the ones you just got within the last couple years, it makes you look like a much newer borrower. Keep a couple of the oldest open. Don't worry about the interest rate is, just don't use that card. Creditors don't care what the rate is., they care about the history and the length the card has been open. Creditors and mortgage companies also like to see three credit lines open for 1 to 2 years. The higher the credit limit the better they like it.
Working with credit card balances is another strategy for bringing up your score: Transfer balances from a card that's close to being maxed out to other cards to even out your usage. Or just spread out your charges between a few cards. Try to get the usage on all of them at 20 to 30 percent instead of a bunch at zero and one at 85 percent. Remember the credit reporting companies drop your score when you get close to maxing out your limit on credit cards. It is better to have 2 or 3 at 33% than one at 90%.
Rapid rescoring If you're in the middle of qualifying for a mortgage and need a score boost in a hurry, you can speed the process along with rapid rescoring. If you've got legitimate negative information on your credit report, such as late payments or accounts in collections, you're out of luck. But the process of rapid rescoring can help increase your score within a few days by correcting errors or paying off account balances.
You can't do this one yourself; you'll need a lender who is a customer of a rapid rescoring service. Generally, the service will run roughly $50 for every account on your credit report that needs to be addressed, but it could save you thousands on your loan. If a consumer can find a lender who is a customer of a rapid rescoring service, new information can be posted within 72 hours.
The bottom line, the experts say, is that you're not powerless when it comes to your credit score.
There are a lot of things you can do to improve your score. For more help email me at info@RussRavary.com or go to my website www.RussRavary.com
Friday, March 21, 2008
Seller paid closing costs
Do you have a little bit of money to put down on the Michigan real estate that you want. Let's say you have 3 -5 % to put down but you do not have enough money to pay for mortgage closing costs or to pay the prorated taxes on the Michigan Home. How do you buy the house?
Depending on the mortgage lender that you go with mortgage closing costs are from $1200 - $2500. That is not even counting setting up an escrow account or paying back the prorated taxes on your new Michigan home. So what can you do when you found the home of your dreams? Your mortgage lender and your real estate agent need to talk. You need the seller to pay for your closing costs. Some lenders allow a home seller to pay 3 to 6% of the closing costs. most lenders allow at least 3% of the mortgage closing costs to be paid by the seller.
By asking for 3 or 4% to cover your mortgage closing costs will save you from borrowing the money from family members and allow you to buy your new Michigan home. This is very common in many Michigan real estate transactions. Sellers are willing to give sellers concessions to get the home sold and have a solid deal.
But remember the seller paid closing costs is money out of the seller's pockets. The seller will then get less money than if he sold the house without seller's concessions. The seller may not be willing to give seller's concessions and a lower price.
So if you have the money for mortgage closing costs and you want a low price on the homes do not ask for seller's concessions.
For more on Michigan Mortgage Rates, Michigan mortgages, Credit information, How to buy a bargain Michigan Home and Michigan Real estate go to www.RussRavary.com
Depending on the mortgage lender that you go with mortgage closing costs are from $1200 - $2500. That is not even counting setting up an escrow account or paying back the prorated taxes on your new Michigan home. So what can you do when you found the home of your dreams? Your mortgage lender and your real estate agent need to talk. You need the seller to pay for your closing costs. Some lenders allow a home seller to pay 3 to 6% of the closing costs. most lenders allow at least 3% of the mortgage closing costs to be paid by the seller.
By asking for 3 or 4% to cover your mortgage closing costs will save you from borrowing the money from family members and allow you to buy your new Michigan home. This is very common in many Michigan real estate transactions. Sellers are willing to give sellers concessions to get the home sold and have a solid deal.
But remember the seller paid closing costs is money out of the seller's pockets. The seller will then get less money than if he sold the house without seller's concessions. The seller may not be willing to give seller's concessions and a lower price.
So if you have the money for mortgage closing costs and you want a low price on the homes do not ask for seller's concessions.
For more on Michigan Mortgage Rates, Michigan mortgages, Credit information, How to buy a bargain Michigan Home and Michigan Real estate go to www.RussRavary.com
Monday, March 17, 2008
Bear Stearns & the mortgage fallout.
Boy I was right! I had predicted that there would be bank troubles. I could not imagine that banks can take these kinds of hits. Banks are losing a lot of money when they go to re sell these foreclosed homes. I was in one Detroit foreclosure on Saturday. The bank had not gotten to the home quick enough and the pipes had frozen. There was tremendous water damage.
The bank was owed over $150,000. They had it up for sale for $39,000. There are all sorts of foreclosed homes that the banks are losing 2/3's of its investments. How can banks take those types of hits? THEY CAN'T AS WE FOUND OUT WITH BEAR STEARNS.
Now here is a prediction from me. There will be another one. It is a West Coast Bank that did a lot of exotic mortgages. They were a bigger seller of option arms. They also did sub prime mortgages. I don't see how they can survive.
For more on Michigan mortgages go to my website www.RussRavary.com or if you would like a Michigan foreclosure list of your city email me at Info@RussRavary.com
The bank was owed over $150,000. They had it up for sale for $39,000. There are all sorts of foreclosed homes that the banks are losing 2/3's of its investments. How can banks take those types of hits? THEY CAN'T AS WE FOUND OUT WITH BEAR STEARNS.
Now here is a prediction from me. There will be another one. It is a West Coast Bank that did a lot of exotic mortgages. They were a bigger seller of option arms. They also did sub prime mortgages. I don't see how they can survive.
For more on Michigan mortgages go to my website www.RussRavary.com or if you would like a Michigan foreclosure list of your city email me at Info@RussRavary.com
Sunday, March 16, 2008
Is it a great time to buy or not
My perspective on this is that home prices will continue to fall this year. BUT WHAT WILL INTEREST RATES DO? Remember that if rates rise one percent the cost savings you save on the price of the house may be lost in higher mortgage payments. Nobody knows where the interest rates will go or when the housing market will bottom out.
So what I recommend to anybody that is thinking about buying a home is watch the area you want. Browse the Michigan homes for sale on my website on and off. There may be a home that comes up. It may be your dream home. It might sell before next year.
You may not see any home you like for 6 months to a year, but you may find the exact home you want 4 months from now. The bottom line is getting the home you want. It may not be at the absolute rock bottom price but if rates are good I would consider putting an offer in on the home you want. For more on Michigan Mortgages, Michigan Real Estate, Detroit Real estate or to search over 70,000 Michigan Homes for sale feel free to go to my website www.RussRavary.com If you want a Michigan Foreclosure list email me at info@RussRavary.com
So what I recommend to anybody that is thinking about buying a home is watch the area you want. Browse the Michigan homes for sale on my website on and off. There may be a home that comes up. It may be your dream home. It might sell before next year.
You may not see any home you like for 6 months to a year, but you may find the exact home you want 4 months from now. The bottom line is getting the home you want. It may not be at the absolute rock bottom price but if rates are good I would consider putting an offer in on the home you want. For more on Michigan Mortgages, Michigan Real Estate, Detroit Real estate or to search over 70,000 Michigan Homes for sale feel free to go to my website www.RussRavary.com If you want a Michigan Foreclosure list email me at info@RussRavary.com
Saturday, March 15, 2008
How mortgage brokers get paid
I am a mortgage broker. And I am not afraid of telling you how we get paid. Banks and lenders want to sell loans. The more they buy, the more they can sell to bulk mortgage investors. Whether banks sell loans in house or get mortgage brokers to sell them for the bank, the bank pays it's employees or mortgage broker a commission.
I once did a Michigan mortgage for a client. He asked which bank it was going through. I didn't think anything of it. He called me the next day and asked me how I could get a mortgage interest rate cheaper than the bank itself was giving out. He couldn't believe it!
Here is the secret. Banks and lenders sell mortgages to investors. They have to set mortgage interest rates according to what the bulk investors will pay that day for the mortgage. So what the bank and the lender do is send out rate sheets by email and fax to mortgage brokers.
For example a bank or lender may 1% of the loan amount for a 6.0% mortgage. Then they may pay 1.45% for a 6.125% mortgage. They may pay 2.5% for a 6.5% mortgage.
So the mortgage broker decides what he is willing to make on a loan. Some mortgage brokers like me work on volume and are willing to give a lower rate. Where other mortgage brokers may charge a little more. We as mortgage brokers represent 20 -30 banks. We see what they want to charge and we can shop your Michigan loan around.
Remember mortgage brokers and banks are getting a paid a percentage of the loan amount. So usually they like loan amounts over $150,000. Small loan amounts under $80,000 they do not make much money on and can be more trouble than they are worth. Think about it. 1/2% of $60,000 is $300 whereas 1/2% of $200,000 is $1000.
So know you know how banks, lenders, mortgage brokers make their money. That is why different places have different rates and closing costs. Sometimes mortgage brokers pay some of the fees out of their commission. Which is good for you the consumer. You can get a good rate and good closing costs. For more on Michigan mortgages go to my website www.RussRavary.com For Michigan things to do, Holiday trivia, Michigan facts, real estate tips, mortgage information. Or email me at OurMortgageGuy@yahoo.com for Michigan Mortgage rates
I once did a Michigan mortgage for a client. He asked which bank it was going through. I didn't think anything of it. He called me the next day and asked me how I could get a mortgage interest rate cheaper than the bank itself was giving out. He couldn't believe it!
Here is the secret. Banks and lenders sell mortgages to investors. They have to set mortgage interest rates according to what the bulk investors will pay that day for the mortgage. So what the bank and the lender do is send out rate sheets by email and fax to mortgage brokers.
For example a bank or lender may 1% of the loan amount for a 6.0% mortgage. Then they may pay 1.45% for a 6.125% mortgage. They may pay 2.5% for a 6.5% mortgage.
So the mortgage broker decides what he is willing to make on a loan. Some mortgage brokers like me work on volume and are willing to give a lower rate. Where other mortgage brokers may charge a little more. We as mortgage brokers represent 20 -30 banks. We see what they want to charge and we can shop your Michigan loan around.
Remember mortgage brokers and banks are getting a paid a percentage of the loan amount. So usually they like loan amounts over $150,000. Small loan amounts under $80,000 they do not make much money on and can be more trouble than they are worth. Think about it. 1/2% of $60,000 is $300 whereas 1/2% of $200,000 is $1000.
So know you know how banks, lenders, mortgage brokers make their money. That is why different places have different rates and closing costs. Sometimes mortgage brokers pay some of the fees out of their commission. Which is good for you the consumer. You can get a good rate and good closing costs. For more on Michigan mortgages go to my website www.RussRavary.com For Michigan things to do, Holiday trivia, Michigan facts, real estate tips, mortgage information. Or email me at OurMortgageGuy@yahoo.com for Michigan Mortgage rates
Friday, March 14, 2008
Pre-approval letter.
Pre-approval letters
So you were pre-approved last year for a Michigan Home. That approval letter may not be Worth the paper it is printed on! Banks and Lenders have tightened up lending guidelines. In the last year mortgage lending has completely changed. There is no more 100% loans in Michigan. Even 95% loans are getting tougher. Though the alternative is an FHA loan. With an FHA loan you can get up to 97% of the purchase price and have the seller pay some of the closing costs.
Every week banks and lenders are looking at how to stop their bleeding. How to stop foreclosures. That is why they are tightening up the lending guidelines. Banks do not want to take the risk. Some people that bought homes in the last 5 years can not even refinance because many lenders do not do sub prime loans anymore. They do not have the mortgage programs they had last year, or even 6 months ago. Even a 620 score is not considered very good anymore.
So don't get caught with your pants down. Get your pre-approval today from a qualified lender. If you are thinking of buying a Michigan home give me a call. I will help you get pre-approved, straighten your credit out so you can buy a home of your own. For more on Detroit Real Estate, Michigan Real Estate, Wayne County real Estate, Oakland county real estate go to my website www.RussRavary.com I have lot of great Michigan mortgage information, credit report information, Michigan home buyers tips
So you were pre-approved last year for a Michigan Home. That approval letter may not be Worth the paper it is printed on! Banks and Lenders have tightened up lending guidelines. In the last year mortgage lending has completely changed. There is no more 100% loans in Michigan. Even 95% loans are getting tougher. Though the alternative is an FHA loan. With an FHA loan you can get up to 97% of the purchase price and have the seller pay some of the closing costs.
Every week banks and lenders are looking at how to stop their bleeding. How to stop foreclosures. That is why they are tightening up the lending guidelines. Banks do not want to take the risk. Some people that bought homes in the last 5 years can not even refinance because many lenders do not do sub prime loans anymore. They do not have the mortgage programs they had last year, or even 6 months ago. Even a 620 score is not considered very good anymore.
So don't get caught with your pants down. Get your pre-approval today from a qualified lender. If you are thinking of buying a Michigan home give me a call. I will help you get pre-approved, straighten your credit out so you can buy a home of your own. For more on Detroit Real Estate, Michigan Real Estate, Wayne County real Estate, Oakland county real estate go to my website www.RussRavary.com I have lot of great Michigan mortgage information, credit report information, Michigan home buyers tips
Thursday, March 13, 2008
Michigan Foreclosures
Michigan Foreclosures, Northville Foreclosures, Farmington Hills foreclosures - what to remember
When buying a Michigan foreclosure, REO, or any bank owned property around Michigan, Oakland County, Wayne County, or Livingston county you need to remember a few things.
1) When buying a Michigan foreclosure remember to read and re-read the contract and addendums from the bank. Many times the bank has language protecting them. Sometimes they push some of the title closing costs on you. Beware. Anything you do not understand ask your Realtor to explain.
2) When buying a Michigan foreclosure remember that the bank is not going to fix anything. You are buying the home "as is".
3) When buying a Michigan foreclosure you should always have an inspection clause and have a professional inspect the property. Don't let uncle Joe inspect your Michigan foreclosure. You need to be aware of all the possible problems with the home.
4) When buying a Michigan foreclosure remember it takes time to get the deal closed. Most foreclosure departments are only open during the week Monday through Friday. Be patient when bidding on a Michigan foreclosure.
There are many Michigan foreclosures out there. There are many bargains in the Michigan foreclosures. If you would like a list of Michigan foreclosures sent to you email me at info@RussRavary.com or email me at OurMortgageGuy@yahoo.com I will send you a list of Michigan foreclosures in the city you request that you can open and browse through at your leisure.
For more on Michigan foreclosures, Michigan Real estate, and Michigan Mortgage go to my website www.RussRavary.com see my website for Michigan real estate investing (Flipping) or to search over 70,000 Michigan homes for sale free
When buying a Michigan foreclosure, REO, or any bank owned property around Michigan, Oakland County, Wayne County, or Livingston county you need to remember a few things.
1) When buying a Michigan foreclosure remember to read and re-read the contract and addendums from the bank. Many times the bank has language protecting them. Sometimes they push some of the title closing costs on you. Beware. Anything you do not understand ask your Realtor to explain.
2) When buying a Michigan foreclosure remember that the bank is not going to fix anything. You are buying the home "as is".
3) When buying a Michigan foreclosure you should always have an inspection clause and have a professional inspect the property. Don't let uncle Joe inspect your Michigan foreclosure. You need to be aware of all the possible problems with the home.
4) When buying a Michigan foreclosure remember it takes time to get the deal closed. Most foreclosure departments are only open during the week Monday through Friday. Be patient when bidding on a Michigan foreclosure.
There are many Michigan foreclosures out there. There are many bargains in the Michigan foreclosures. If you would like a list of Michigan foreclosures sent to you email me at info@RussRavary.com or email me at OurMortgageGuy@yahoo.com I will send you a list of Michigan foreclosures in the city you request that you can open and browse through at your leisure.
For more on Michigan foreclosures, Michigan Real estate, and Michigan Mortgage go to my website www.RussRavary.com see my website for Michigan real estate investing (Flipping) or to search over 70,000 Michigan homes for sale free
Tuesday, March 11, 2008
Michigan mortgage rates
Michigan mortgage rates are once again on the rise. The reason being is that investors are shying away from buying mortgages and mortgage back securities. Investors are wary of putting money into mortgages.
What that means to mortgage companies and consumers is that rates may continue to rise even though the Fed continues to cut the rates. You can see my article on the difference between the Fed rate and the mortgage interest rate at www.activerain/blogs/russravary It explains a lot why it happens.
The bottom line is that mortgage rates do not always go down when the Fed cuts the rate. Especially right now when big investors are afraid of buying mortgages. No pension fund manager want to take a chance on putting somebodies retirement at risk because of the mortgage fiasco. Not many foreign investors want to take the chance at this time either. What that means is that mortgages are getting harder for the banks and lenders to sell. Rates may continue to rise this year.
For more on Michigan mortgages, Michigan real estate go to my website www.RussRavary.com Search over 70,000 Michigan Homes for sale at your leisure. Email me for a Michigan foreclosure list in your city at info@RussRavary.com
What that means to mortgage companies and consumers is that rates may continue to rise even though the Fed continues to cut the rates. You can see my article on the difference between the Fed rate and the mortgage interest rate at www.activerain/blogs/russravary It explains a lot why it happens.
The bottom line is that mortgage rates do not always go down when the Fed cuts the rate. Especially right now when big investors are afraid of buying mortgages. No pension fund manager want to take a chance on putting somebodies retirement at risk because of the mortgage fiasco. Not many foreign investors want to take the chance at this time either. What that means is that mortgages are getting harder for the banks and lenders to sell. Rates may continue to rise this year.
For more on Michigan mortgages, Michigan real estate go to my website www.RussRavary.com Search over 70,000 Michigan Homes for sale at your leisure. Email me for a Michigan foreclosure list in your city at info@RussRavary.com
Friday, March 7, 2008
What has happened in the last week
Detroit mortgage market and Michigan mortgages. A lot has happened in the last week in the mortgage world. That what happens when you go on vacation in Florida and try to keep up by phone and glimpsing at the news.
Most of Southeastern Michigan real estate has been determined a "declining market." What that means to you as a consumer in Michigan is that banks and lenders are going to loan less on your property. Some banks are reducing the amount they will do for home equity loans. They used to loan up to a 100%, now some banks will not even loan 75% of your homes value. One of the ladies at my wifes office was upset with their loan officer and bank because of the "declining market" situation. The bank was making them come up with an extra 5% to buy the home. The ladies husband thought he was going to be able to talk the bank out of it. But they didn't. They had to put more money down. It doesn't matter even if you have the greatest credit you have to put more down.
It is not about the credit. It is about the value of the house. Why would a bank loan 95% on a house and have the chance that it may be only worth 90% next year! You the borrower would owe more than it is worth. The bank doesn't want those types of loans. It wants to protect it's assets. It wants you to have a financial interest in what you buy.
One of my fellow realtors got an email from his mortgage broker quoting that by March 1 most banks are only going to loan 90%. That means buyers will have to come to the table with 10% down or do a FHA Loan. Most buyers don't have 10% to put down, so FHA may be the loan of choice for many people. FHA loans may be the only choice for many people. If you are thinking of buying a Michigan home and want to see your mortgage choices.
Many people will be trapped in their Michigan mortgages and will not be able to refinance because of the lower loan limits. The key for many people now is to work harder at paying off their second mortgage. Reduce that higher payment. Get rid of that high interest payment. Pay extra on your second mortgage.
For more on Michigan mortgages and Michigan real estate go to my website www.RussRavary.com
Most of Southeastern Michigan real estate has been determined a "declining market." What that means to you as a consumer in Michigan is that banks and lenders are going to loan less on your property. Some banks are reducing the amount they will do for home equity loans. They used to loan up to a 100%, now some banks will not even loan 75% of your homes value. One of the ladies at my wifes office was upset with their loan officer and bank because of the "declining market" situation. The bank was making them come up with an extra 5% to buy the home. The ladies husband thought he was going to be able to talk the bank out of it. But they didn't. They had to put more money down. It doesn't matter even if you have the greatest credit you have to put more down.
It is not about the credit. It is about the value of the house. Why would a bank loan 95% on a house and have the chance that it may be only worth 90% next year! You the borrower would owe more than it is worth. The bank doesn't want those types of loans. It wants to protect it's assets. It wants you to have a financial interest in what you buy.
One of my fellow realtors got an email from his mortgage broker quoting that by March 1 most banks are only going to loan 90%. That means buyers will have to come to the table with 10% down or do a FHA Loan. Most buyers don't have 10% to put down, so FHA may be the loan of choice for many people. FHA loans may be the only choice for many people. If you are thinking of buying a Michigan home and want to see your mortgage choices.
Many people will be trapped in their Michigan mortgages and will not be able to refinance because of the lower loan limits. The key for many people now is to work harder at paying off their second mortgage. Reduce that higher payment. Get rid of that high interest payment. Pay extra on your second mortgage.
For more on Michigan mortgages and Michigan real estate go to my website www.RussRavary.com
Saturday, February 23, 2008
Your home as a bank
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
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
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
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