Does Cancelled Debt Mean a Suprise Tax Bill
As an example, let’s say you borrow $100,000 on a mortgage and default on the loan after paying back $20,000. If the lender is unable to collect the remaining debt from you, there is a cancellation of debt of $80,000 . This is generally taxable income to you. Thankfully there are numerous exceptions to this where you can avoid any tax. Here are... [Read more...]
Top Movies That Hit Home
Here are some of my favorite movies where a home is a big part of the flick: Money Pit-This is the best movie about a home ever made. I can watch this movie 100 times and it is funny every time. The movie is timeless and if you have not seen it stop what you are doing and watch it immediately. You will thank me. The Amityville Horror-This house still... [Read more...]
Credit Scoring
Now more than ever your credit score is the key to home ownership. Both your ability to get approved and the interest rate depend on your credit score. So what is a credit score and how do they work? Lenders needed a way to simplify the loan approval process. A company called Fair Isaac developed a credit risk model based on thousands of credit histories. ... [Read more...]
Breaking News! FHA Changes Effective September 7th
The Upfront mortgage insurance premiums are going down and the monthly mortgage insurance premium is going up. Going Down: The Upfront mortgage insurance will be reduced from 2.25 percent of your loan amount to 1.25 percent on Sept. 7. This Upfront mortgage insurance is added to your loan amount so it does not change the amount you will need to bring... [Read more...]
How to Find The Best Rewards Card?
I do know about you, but if I am going to spend money I want to earn rewards while I am doing it. In the back of my mind I am always wondering if there is a better rewards card that I am missing out on. Of course this is only a good strategy if you pay your balance off every month. There is a great site that Money Magazine wrote about called... [Read more...]
Foreclosure Delay
If your home is in foreclosure or you are worried about foreclosure in the future, here are techniques to help during this stressful time period. Chapter 7 bankruptcy: Any kind of bankruptcy stops your foreclosure. A chapter 7 bankruptcy will actually allow you to walk away from the property with out and future liability. Chapter 13 bankruptcy: This... [Read more...]
The Benefits of the Deed-In-Lieu of Foreclosure
The rules regarding the waiting period for obtaining a conventional mortgage after a Deed-In-Lieu of foreclosure is now shorter. Deed-in-Lieu’s were treated the same as Foreclosures so there was no incentive for a homeowner to work things out with their lender. Here are the basics on the new rules for Fannie Mae conventional mortgages regarding... [Read more...]
The Credit Report Surprise You Want to Avoid
So your lender pulled your credit and you are approved for a loan. You are in the clear right? Unfortunately, that is no longer the case. Fannie Mae is now requiring that your credit be re pulled the day of your closing. If anything has changed it could mean trouble. Here are some highlights of the new rule: Credit re-verification on the day... [Read more...]
Jumbo Loans with out the Jumbo Interest Rates
As many of you know loan amounts greater than $417,000 are considered jumbo loans. When the credit crunch occurred jumbo interest rates shot up and have not fallen like non jumbo mortgages. Recently, several lenders have released new jumbo loan programs with extremely competitive rates and terms. If you were thinking of buying a home with a jumbo loan,... [Read more...]
The 90 Day Rule Has Been Waived
The restriction on using an FHA loan to buy a home that has been owned for less than 90 days has been waived. If you are interested in a home that was recently purchased by an investor and renovated this could allow you to get financing with out having to wait several months. Here are the highlights of the waiver from the HUD which is the US Department... [Read more...]
Home Warranties 4 Things You Should Know
You will still need to pay for repairs. Home warranties do not cover everything so make sure you know what is covered. Contract restrictions:For example they may only cover things that are well maintained. Forget to change the furnace filter and they could dispute your claim. Fix or Replace? They decide. They decide when to fix or replace an item and... [Read more...]
House warming gifts
Ok so someone you know just bought a home. Please do not go out and buy a Chia Pet or that upside down hanging tomato plant as seen on TV. Also, definitely avoid the temptation of the infomercial products like the Be-Dazzler, Mighty Mend-it, or Mr. Steamy. Here are some practical housewarming gifts that people will appreciate. Tool Kit: Most first... [Read more...]
Home Selling Tips
Here are some tips to help you sell your home: Single Property Web Site: Create an individual web site for your home and advertise it on the sign. People will be able to look up your home immediately on their phones. I can refer you an agent who can do this for you or I can help your existing agent set this up. Feedback: Make sure your agent is... [Read more...]
Loan Modifications: Results Not Guaranteed
I remember the days of being bombarded with mortgage advertisements. I could not drive in my car or watch a sporting event with out hearing a commercial from the likes of Rock Financial. These commercials have been replaced with the constant barrage of ads promising guaranteed loan modification results. People are desperate and they want to believe... [Read more...]
Mortgage Upside Down? More Help on the Way…
If you owe more than your home is worth some help from FHA is coming this fall. The program is voluntary for lenders so we will have to see how many participate. If you are an upside down Michigan Homeowner and do not qualify for the current Fannie Mae and Freddie Mac program this may solve your upside down mortgage problem. The great news about... [Read more...]
Shorter Short Sales
Short Sales have become very popular with so many people underwater in their homes. In a short sale the owners lender accepts less than the full balance so that the seller can sell the home as opposed to going in to foreclosure. A new government program may make for shorter wait times and a smoother process when trying to sell or buy using a short... [Read more...]
My Home is Underwater-What are my options?
Keep making your payments and ride out the storm. If you do not need to move and can afford your payments you should just keep making your payments as eventually the housing market will rebound. Moody’s economy.com projects that 61% of metro areas will get back to their recent highs by 2015. Refinance with Fannie Mae or Freddie Mac Home Affordable... [Read more...]
Top 10 Songs That Really Hit Home
The 10 greatest songs about Houses or Homes…. 1. Pink Houses by John Cougar, or is it John Cougar Mellencamp, wait didn’t he change it to just Mellencamp, anyway it’s classic song about simple American life that came out in (1983) no matter who performed it. 2. Home Sweet Home by Motley Crue (1985) Hard to believe that the same band... [Read more...]
Short Sale Does Not Mean Loan Denial If…
I recently received a call from a client who was selling her home on a short sale and was told by multiple lenders that she would have to wait 3 years before she could get a new home. This is simply not true based on current FHA guidelines. You can get a new mortgage after selling your home on a short sale if you are using an FHA mortgage and meet... [Read more...]
Won’t You Be My Neighbor
Not every neighborhood will be as nice as Mr. Rogers neighborhood. It can be difficult to pick the right community to live in. A good site where you can start your research is NEIGHBORHOODSCOUT.COM. You can compare different neighborhoods by factors including schools, crime rates, and even if it is good for retirees. Also if you find an address... [Read more...]
Should I Do It Myself?
If you are as mechanically challenged as I am then the answer is clear-hire a contractor. Just because you are mechanically inclined does not mean that it is always better to do it yourself. If you are not sure if you can do the job or not ask your spouse and take their advice. Chances are they will be brutally honest, which is exactly what you... [Read more...]
The Best Ways to Save on Your Purchases
Let’s just say my spouse enjoys spending money. I am constantly looking for ways to save and help balance out our budget. It is important to save money everywhere you can especially if you are looking save for a down payment in order to purchase a home. Here are a few tools that have helped me. Travel: When it comes to travel there are a... [Read more...]
Deadline for Refinancing Underwater Mortgages Extended
The Home Affordable Refinance Program (HARP), which was scheduled to end on June 10, 2010, has been extended to June 30, 2011. If you are underwater on your mortgage you should explore this program to lock into a fixed rate. Here are some quick points to remember about the HARP Loan program: You must be current and not have any lates in... [Read more...]
Fighting Your Taxes
If you think you are paying too much in property taxes you may be right. The key is how to convince your local assessing office to lower your taxes? Before we get in to how to fight your taxes we need to understand some of the terms involved. There are two values listed on your tax bill: State Equalized Value and Taxable Value. State Equalized... [Read more...]
Automatically Track Spending & Budget for Free
One of the most important things to do before buying your first home or moving up to a more expensive home is to have a budget so you know what you can afford. The problem is that life is hectic and most people do not have time to balance there check books. Actually tracking your spending and developing a budget can seem like an impossible goal. ... [Read more...]
Biweekly Mortgage Payment Plan-Is it Magic?
I often receive phone calls from people who receive advertisements in the mail offering a bi-weekly mortgage payment plan. The advertisements typically show that by simply paying every two weeks you can knock off approximately 8 years of mortgage payments. At first glance the program seems almost magical as you can pay the same amount each year... [Read more...]
FHA-Changes Coming Spring 2010
If there is one thing for certain in the mortgage business this past couple of years it is change. After all of the issues with foreclosures the lending industry has changed more in the last several years than it had in the previous 20 years. I am reminded of the chorus of the song sang by the Brady Bunch when Peter’s voice began to change right... [Read more...]
New Appraisal Rules for FHA Loans Coming Soon
The rules on FHA appraisals are changing on February 15, 2010. If you are in the Real Estate industry or may refinance or purchase a home in the future this will affect you. The basic guideline is: “FHA-approved lenders are now prohibited from accepting appraisals prepared by FHA Roster appraisers who are selected, retained or compensated in any... [Read more...]
New Rules on Buying After Selling on a Short Sale
I am often asked if you can buy a new home using an FHA mortgage after selling your current primary residence on a short sale. For quite a while the majority of lenders were requiring that borrowers wait for 3 years before they were eligible for a new FHA insured mortgage to buy a home. FHA had not clarified the rules and I had successfully placed multiple... [Read more...]
Homebuyer Tax Credit-The details you need to know
TAX CREDIT OVERVIEW Who Gets What? First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000 Single taxpayers and married couples filing a joint... [Read more...]
False Illusions and What You Need to Know
For prospective homebuyers who are on the fence about making a home purchase, the next few months represent a countdown of sorts for two reasons. The first of these, the coming expiration of huge tax incentives, may be a bit more obvious to most borrowers. April 30, 2010 is the last day to enter into a home purchase contract and still potentially qualify... [Read more...]
Time Sensitive Tip–Save Money on Your Taxes
As we approach the end of 2009, I wanted to reach out to you as your trusted mortgage advisor and let you know of an extra tax deductible incentive available to you, if you happen to itemize your deductions on your tax return. That incentive is to simply pay your mortgage payment for January so that it is received by your lender on or before 12/31/2009. As... [Read more...]
Catching and Understanding Closing Costs
So you have selected a house, and now you are getting down to the nitty-gritty on what it will really cost you to get into it. Your lender is required by law to give you a “Good Faith Estimate” of your closing cost expenses. On the Good FaithEstimate you will see a breakdown of all of your expenses – what the house will cost you... [Read more...]
Time is Running Out…
If you have been on the fence about buying a home there are reasons to stop waiting and take action. Guidelines keep tightening and the longer you wait the harder it may be to qualify for a mortgage. Effective December 12, 2009 conventional loans now require a minimum credit score of 620 and a maximum debt ratio of 45%. There is also some talk... [Read more...]
Are You Eligible for a VA Mortgage?
If you or your spouse is a veteran, getting a VA mortgage is a great option to know more about, and it guarantees the lender 25% of the home loan (up to $104,250 of a maximum loan of $417,000) if you default. This guarantee makes it easier for you to find attractive financing with no down payment, longer repayment plans, and no prepayment penalty based... [Read more...]
Avoid Foreclosure at All Costs
As we’ve all witnessed in the media this past year, many homeowners have fell into financial hardship and are facing foreclosure on their home. One option to avoid foreclosure is selling the property as a short sale. A good Realtor can negotiate with your bank so that they will allow you to sell the home for less than what you owe. Oftentimes... [Read more...]
Home Buyer Credit Extended and Expanded
Congress has extended and expanded the home buyer tax credit. The bill has passed the House and the Senate and becomes effective when President Obama signs the bill. All changes made to the current credit become effective on that date. The amount of the credit is still 10% of the purchase price up to a maximum of $8000. To qualify for the credit... [Read more...]
Take Action-Stabilize the Value of Your Home
As many of you know the Home Valuation Code of Conduct (HVCC) was enacted this year. This requires that appraisals be ordered through appraisal management companies with no contact allowed concerning the value of the property. The results have been many families not being able to refinance or purchase a home because of the following problems: Since... [Read more...]
7 Steps To Take Before Purchasing a Home
There’s a great deal more to buying a home than you might think at first. Finding the home of your dreams and making an offer is a major part, but there are steps you must take first to prepare for the purchase so that everything can run smoothly. I don’t mean spending months learning from books, manuals or attending costly seminars. I’m... [Read more...]
Choosing the Best Loan For You
A home mortgage will probably be the largest financial commitment you will ever make. So shopping for a home loan means finding the right mortgage package – one that is the best for your financial needs. This can be a difficult choice, so make sure you are working with a lender you trust and can communicate openly with. The loan type you choose... [Read more...]
Just Say No – Take Your Privacy Back
Here’s breaking news you need to know and spread the word to your family and friends. Your information is being sold with out your knowledge. I recently had my credit checked and immediately started receiving solicitation calls? I typically use the “Seinfeld approach” when dealing with these calls. Basically you just politely let the... [Read more...]
Goals Toward Homeownership
Owning a home has long been a primary goal for most people. And the good news is that homeownership has become more available in the past twenty or thirty years. So if you dream of owning your own home, I’d like to share some smaller goals you can work on to achieve it: Organize. Start right now setting money goals and devise a plan to reach them.... [Read more...]
Recommendations for Rental Property Investors
There are many advantages to owning rental property, including the tax advantages you can enjoy while the mortgage on the property is being paid down. If you manage properly, you can take that rental income tax free all the years you are paying off the mortgage. Then when the mortgage is paid off, the property is yours free and clear. You can also pull... [Read more...]
First Time Home Buying Credit is Almost Over
If you are interested in buying your first home, you may not want to wait any longer. The end is in sight for the $8,000 first time home buyer’s credit offered by the Federal Government. It will officially end on December 1, 2009 and your home must be purchased and closed on or before that date. Also, you are considered a first time home buyer... [Read more...]
Some Words on Real Estate Investing
Just like any other big decision, if you’re thinking about getting involved with real estate investing then you need to keep a number of things in mind. Here are 3 things to do and 2 things to avoid so you can be successful. Things To Do Visit the house first. Do a thorough investigation of the property yourself, and then get a professional... [Read more...]
Advice on Buying a First Home
The housing market has always been a bewildering place, especially for those who have never purchased property before, and the credit crunch/sub-prime lending crisis has only added to the confusion. On the one hand, I have found that many first time buyers are finding great opportunities with house prices falling significantly. However, buying a home... [Read more...]
Defining Different Types of Home Sales
If you’ve always wondered the difference between different types of home sales, you’re not alone. People in the industry love to throw around “buzz words” like foreclosure, shortsale, bank owned, etc. But if you don’t know what they mean, it doesn’t do you any good. Here’s a quick breakdown to help you see the... [Read more...]
Avoiding Risky Home Loans
Nobody wants to get stuck in a situation where you buy a home and then later lose it to foreclosure. If I can offer any advice, it would be to always be careful BEFORE getting a loan by making sure you understand the terms, and that it fits your budget. Here are 3 pieces of information I hope you will consider regarding your new or current home loan: 1)... [Read more...]
I Hear It All the Time, But What is Real Estate Escrow?
Well, if you want to get technical, Escrow is defined as “a legal arrangement in which a neutral third party holds an asset during the period in which the conditions of the deal is being finalized by the other two parties.” But that doesn’t really help much, does it? Unless you are working with these terms everyday, they can get pretty... [Read more...]
The Basics of a Short Sale
If you haven’t already noticed, millions of homes have entered the housing market as short sales. So you may be asking yourself, “What is a short sale?” Basically, the term “short sale” is used when lenders allow borrowers to sell their property for less than what they owe on their mortgage. Therefore, when a short sale... [Read more...]
4 Ways to Save on Your A/C Bill
If you’re like me, you’re thinking that running your air conditioning system usually ends up being very costly throughout the summer months, especially if it’s used incorrectly. And what you may not realize is that a large portion of your homes energy bill is made up from your air conditioning system. So below are 4 tips to help you... [Read more...]
Investing in a Real Estate Investment Trust
There is a common misconception when it comes to taking part in real estate investing and that misconception is that an individual must be a “big money player” in order to wheel and deal in property. This assessment is a rather inaccurate one as there are a great many opportunities available to those who only have a modest sum to invest.... [Read more...]
Money Saving Secrets to Buying
Home purchasing is about finding the right house, and this includes getting the right cost. Here are 3 basic methods to purchase a home for less. Buy In Cheap Cities Yes, there are still cheap cities that you may actually wish to live in. In truth, there are still cities in this country where you can see a good film, put the children in good schools,... [Read more...]
The Skinny on Home Inspections
Let’s face it – we can’t all be experts on a home’s structure. We may know some of the things to look for, but a lot of significant problems go right past our eyes. That’s why I think it’s a good idea to pay a home inspector to thoroughly go over any house you’re planning to buy just to be sure it’s in... [Read more...]
Saving For a Down Payment
As a country, Americans have not been the best at saving money. A report recently released by the Bureau of Economic Analysis, charts our efforts to save, continually spiraling down, and it indicates the amount we save is minus half a percent. With this in mind, it is easy to see why first-time home buyers struggle to find a down payment. Today, zero... [Read more...]
Protecting Your Most Important Asset
Have you worked hard to maintain a good credit standing? You’ve been responsible about assuming debt, making payments on time, and careful not to have too many credit accounts. What if all your hard work could be erased, without you even being aware of it? Unfortunately, it’s a modern day fact of life that our credit history can be damaged... [Read more...]
Mortgages 101
The commotion of house hunting is finally over. You found just the right house, and your offer has been accepted. It was a great buy. Now, just one more piece to the puzzle: getting a loan. Often, buyers are so eager to get this “final piece” behind them, that they rush through this portion of the transaction with out considering different... [Read more...]
Giving Your Home a Makeover
You would probably be hard pressed to find a single person that loves every feature of their home. Most of us have a laundry list of things that we would like to be done to make the house perfect. But is it important to implement those plans? Our homes are one of our most important investments. And the design and function of our home affects our lives... [Read more...]
Thinking About the Future
If you read my previous post about getting in debt the right way, we talked about how it can be a good idea to hold off on paying down your mortgage as quickly as possible. So instead of paying off your mortgage, you could be using the extra money for investments. And when you use that money for investments now, you will be working towards your future... [Read more...]
Getting in Debt the Right Way
Are you focused on eliminating debt from your life? Maybe you should instead be focusing on having the right kind of debt. So when is debt ever a good thing? Debt is a good thing when it adds to your investment profile; when it gives you an opportunity to build your long term wealth. There are many ways you can use debt to secure your financial future. Before... [Read more...]
Heard the Latest Mortgage Industry news?
While there’s a lot of buzz about the mortgage industry right now, you may be surprised to know the vast majority of people can still get a great home loan with a great rate. It’s true the problems in the sub-prime market “loans for those with poor credit” have led to a tightening of guidelines for conventional home loans. That’s... [Read more...]
About Me
My clients only think about home financing a few times during their lives ~ I think about it every single day. It's their home and their future. It's my profession and my passion.
I believe that my job is to provide tools and knowledge to help families build wealth through homeownership and through providing the latest financial tips. I have earned the Certified Mortgage Coach (CMC) designation granted by the CMPS Institute. The CMPS Institute is a training and certifying organization created to help mortgage professionals integrate financial planning concepts into the mortgage process.
My focus is to help my mortgage clients better understand the mortgage and housing markets, and thereby choose the right mortgage for their specific needs as everyone has a unique financial situation. My focus is to help my mortgage clients better understand the mortgage and housing markets, and thereby choose the right mortgage for their specific needs.All lenders seem to be selling the same products with the same guidelines, and the industry is going through a great deal of confusion in light of new regulations and turbulent market conditions. As a Certified Mortgage Coach graduate I am equipped to help my clients cut through the confusion and make informed financial decisions. The mortgage is most people’s single largest debt, and their home is often their single largest asset. As a Certified Mortgage Coach, I am committed to working for the best interest of my clients.
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