The Top 10 Reasons To Not Buy A Home In Michigan Until 2010
1. First off, I really do not think anybody should be buying a home for any reason until 2010. There is nothing stopping home values dropping around the country. What needs to happen first is we need to have a leveling out period.
2. Home prices are expected to drop in the greater Detroit, MI area another 8% by May 2009. CNN wrote an article analyzing data and what home prices should be doing. In there you will see Detroit, MI going down 8.6% and Farmington Hills going down 5.9%. This is one of the first charts I have seen that I agree with. Its probably because it was not written by the National Realtors Association. Realtors will always tell you its a great time to buy…mainly because its how they get paid.
3. Shouldn’t this be the time that you want to buy? Prices are dropping at a alarming rate and you have
Click here to continue readingThe Top 10 Reasons Why You Cant Refinance Your Mortgage After The Home Was Listed For Sale On The Market
1. People trying to refinance their home after having it listed for sale are about to run into a big road block. Refinancing a home after being listed is one of the biggest underwriting guidelines that has to be passed. This is not about you, its about the mortgage company.
2. Most mortgage companies like Quicken Loans for instance have very particular guidelines when it comes to this. With all of the homes listed for sale around the country this is one that can become a real deal breaker. Depending on the company, many have a 12 month delisting period. Some will have a 6 month but for the most part its 12.
3. What does this mean? You need to be able to show the mortgage company that you have taken your house off of the market. You can do this by getting a de-listing ticket from your realtor. On the “De-Listing Ticket”
Click here to continue readingThe Top 10 Reasons Why You Should Give Up Trying To Refinance Your Mortgage If The Appraisal Comes In Low
1. Let’s say that you are trying to refinance your mortgage. It does not matter if it is because you are trying to refinance from a adjustable rate mortgage to a 30 year fixed rate mortgage or if you are just looking to take cash out of the equity of your home. Every single mortgage company in the United States is probably going to be following almost identical underwriting guidelines.
2. One of the main guidelines is that all mortgage lenders must do an appraisal on the home. There was a time during the refinance boom that sometimes you could get away without having to do an appraisal. The only times you could do this was when you were doing a “rate/term refinance” or doing a second mortgage like a home equity loan. A “rate/term refinance” is one where you just change the terms of the loan, i.e, change from a 30 year fixed to
Click here to continue readingThe Top 10 Reasons The U.S Government Should Become A Mortgage Lender
1. With this never ending housing/mortgage fiasco going on we need to take a look at some ways to correct the situation. With the U.S Government deciding to pass this stupid $700 Billion Bailout Plan which was supposed to correct the instability in the stock market (we all knew it was not going to work as the stock market has dropped below 10,000 points for the first time in 4 years since after passing it) with the U.S Government buying up all of these bad loans. Doesn’t the U.S Government print up this money in the first place? How did they let it get to this in the first place?
2. The mortgage lending system kind of works like this. The Federal Reserve has the power to set interest rates and to determine when they should open up the spickets to flood more money into the economy (thus lowering the value of the
Click here to continue readingThe Top 10 Reasons You Should Buy A Home With A Home Equity Line Of Credit (HELOC)
1. Buying a home with a home equity line of credit might be tricky nowadays but if you can do it I would suggest to look into it. It is probably not the first home loan that you are going to look at buying a piece of property with, but it is very advantageous in many financial kind of ways.
2. Most people start the mortgage shopping process by comparing different mortgage companies interest rates on the 30 year fixed rate mortgage. This is a safe bet and 9 out 10 times should be the way that most people go about picking the right mortgage for them. Its a way that people will know exactly what their payment will be until the day they pay it off. No surprises with that one. It usually comes down to picking the right bank or getting referred to somebody that your friends went with.
3. What
Click here to continue readingThe Top 10 Reasons Why Your Mortgage Has Made You House Poor
1. Many people over the past 5 years who bought homes thought they were getting rich by buying bigger homes. Many were told that homes always went up in value and that they needed to get into the market as soon as possible before prices went up more. With history on your side, buying a home was the safe bet because they were going up in value across the U.S at an alarming rate. Little did the home buyer know, that they were about to become house poor.
2. House poor is a relatively new term. You never really heard any terms like negative amortization mortgage, option arm loans, or adjustable rate mortgage before the refi boom. They became common place during the refi boom and were supposed to be good home loans. Unfortunately they were some of the worst loans ever. Nothing can ever beat the 30 year fixed interest rate mortgage.
3. So
Click here to continue readingThe Top 10 Reasons Self Employed People Can Not Get Approved On A Mortgage
1. Being self employed is a lot of people’s dream. Being able to call your own hours, be your own boss, take vacations when you want, earn as much money as you want to earn, write offs on your taxes, etc. For most people though this is hardly the case. Most people that are self employed do not mind working more because they usually like what they are doing. Most self employed people struggle to get their businesses off of the ground and most do fail either because of poor planning, under funding, or lack of will power to keep on pushing.
2. Besides all of the issues to get your small business going where it really hurts self employed people the most is trying to get financing for anything. If you just quit your day job and are going to go at your small business 100% than you better be ready
Click here to continue readingThe Top 10 Reasons Why I Want Fannie Mae And Freddie Mac To Go Bankrupt
1. Well, it actually is kind of official today that Fannie Mae and Freddie Mac are bankrupt. CNN has the low down on why it happened. The unfortunate part is that they really are not bankrupt. I think its interesting how two organizations that were started by the U.S Government are now being bailed out by the U.S Government. It really makes me want to say “WTF?”
2. Fannie Mae and Freddie Mac were set in place to help free up more money for banks to lend too. In the good old days, banks could only lend in mortgages what they had in their own accounts. As an example, the money they could lend would come from the money you deposited with them for your checking or savings account. The bank would pay you a small rate of return on your money and would lend it out. This is a very sound
Click here to continue readingThe Top 10 Reasons Realtors Do Not Like FHA Loans
1. The FHA loan has became popular once again over the past 6 months mainly due to it being one of the only 100% financing loans able to use to buy a home. With all of the major mortgage companies going bankrupt around the country they all lost their ability to use their own loans. What I mean by using their own loans is that many companies, let’s say Quicken Loans for example worked with larger banks and investment firms and they wrote their own guidelines. This means that they made their own rules and as long as a bunch of underwriting guidelines were met than the loan could be written and sold on the secondary market for a profit.
2. Realtors loved this during the days of the refi/purchase boom. Since the mortgage companies had their own guidelines a person looking to buy a home could buy just about anything they wanted as
Click here to continue readingThe Top 10 Reasons Why Property Taxes Are Not Calculated Correctly And Need To Change
1. Right now around the country your home is taxed based on a percentage of what the value or home is worth based on what the county assessor thinks it is worth. As an example lets say your local county government has a property tax of 1% and your home was assessed at $300k. You would pay $300k x 1%= $3000 a year in property taxes.
2. This is a great system for the county when property values are going up because as your property value goes up the amount of money you pay in property taxes goes up. The county government does not look bad at all because they did not have to raise the percent to bring in more money, it was the market that did it.
3. For the most part people do not complain about paying a little more in property taxes because they have been told that the value of the
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