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

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