Wellington Square Farmers Market open til 1:00 today--
Great little market right in our neck of the woods--
no you don't have to go to Larchmont--
support it & it will grow as big as that one!
Easy, free parking...
Washington Blvd between Wellington & Virginia
Sunday, 31 July 2011
Saturday, 30 July 2011
Do-it-yourself mortgage savings
Do-it-yourself mortgage savings
There's an easier way than sending in 2 payments each month
BY BENNY KASS, TUESDAY, JULY 26, 2011.
DEAR BENNY: My lender just sent me a form notice suggesting that I can save a lot of money if I start making two mortgage payments each and every month. Does this make sense? --Jill
DEAR JILL: There is a trade-off on what is called a "biweekly" mortgage. Yes, you will save paying a lot of interest, but, depending on your tax bracket, your interest deductions will also be reduced.
Let's take this example: You borrow $200,000 at 4.75 percent for 30 years. From the amortization table, you know that your monthly payment (excluding taxes and insurance) is $1,043.30. If you continue to pay this amount each and every month, on the 360th month, you will have paid off your mortgage completely.
But let's say that instead of paying monthly, you decide to make two payments each month. In effect, you are now making 13 monthly payments each year, which will reduce the number of years you have to pay down to between 22 and 25, instead of 30.
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But does this make sense? I think not. As I have written on several occasions, you can accomplish this same goal by adding additional funds when you make your monthly mortgage.
In my example, since your monthly mortgage is $1043.30, divide that by 12 ($86.94) and add that amount to your monthly mortgage. You get the same benefits as with the "biweekly," but you don't have to send in two payments. More importantly, you are not obligated to make those extra payments if your financial situation changes. With the biweekly, you must make two payments per month.
If you opt to make a larger monthly payment, make sure that you write on your check "extra payment to principal in the amount of XX," and also make a notation on any coupon that you have to send in. If you have arranged for automatic payments from your bank, send the loan servicer a letter advising that you are making additional payments toward principal.
And at the end of each year when you get your mortgage balance statement, confirm that all of that additional money has, in fact, been credited.
Friday, 29 July 2011
John Aaroe Group--Architectural Properties Division
"LA's Architectural Moment #5"...
Gamble House in Pasadena is one of So Cal's greatest architectural resources & a National Historic Landmark. Designed by architect brothers Charles Sumner Greene & Henry Mather Greene in 1908-09 for David B. Gamble (think Procter & Gamble...toothpaste...dete
Aaroe Architectural (AA) is the exciting new architectural properties division at John Aaroe Group (JAG) which premiers this June. Hold on to your architectural aesthetics "...cause you ain't seen 'nothin yet!"
Bret Parsons, Founder & Managing Director, JAG-AA
Bret@BretParsons.com
Thursday, 21 July 2011
Mortgage rates settle near lows for the year
Mortgage rates settle near lows for the year
Mortgage bankers see surge in demand for refinancings
BY INMAN NEWS, THURSDAY, JULY 21, 2011.
Mortgage rates were little changed this week, remaining near their lows for the year on mixed economic and housing data, Freddie Mac said in releasing the results of its latestPrimary Mortgage Market Survey.
A separate survey by the Mortgage Bankers Association showed a jump in applications to refinance last week, and that demand for purchase loans was stronger than at the same time a year ago.
Freddie Mac's survey showed rates on 30-year fixed-rate mortgage (FRM) averaged 4.52 percent with an average 0.7 point for the week ending July 21, virtually unchanged from 4.51 percent last week and 4.56 percent a year ago.
The 30-year fixed-rate mortgage hit an all-time low in Freddie Mac records dating to 1971 of 4.17 percent during the week ending Nov. 11, 2010, before climbing to a 2011 high of 5.05 percent in February.
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Rates on 15-year fixed-rate mortgages averaged 3.66 percent with an average 0.7 point, compared to last week's 2011 low of 3.65 percent and 4.03 percent a year ago.
The 15-year fixed-rate loan hit an all-time low in records dating to 1991 of 3.57 percent in November, before climbing to a 2011 high of 4.29 percent in February.
Rates on 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans averaged 3.27 percent with an average 0.5 point, down from 3.29 percent last week and 3.79 percent a year ago.
This year, rates on 5-year ARMs have ranged from a high of 3.92 percent in February to 3.22 percent during the week ending June 30 -- an all-time low in Freddie Mac records dating to 2005.
One-year Treasury-indexed ARM averaged 2.97 percent with an average 0.5 point, up slightly from 2.95 percent last week but down from 3.70 percent a year ago.
MBA chief economist Michael Fratantoni said ongoing turmoil in the financial markets -- particularly the European debt crisis -- has brought mortgage rates down.
The MBA's Weekly Mortgage Applications Survey showed demand for refinancings jumped 23.1 percent during the week ending July 15 from the week before.
After adjusting for seasonal factors, demand for purchase loans was virtually unchanged from the week before, but was up 8.3 percent from a year ago.
Fratantoni said one factor driving the surge in refinancings may be that borrowers who could be affected by potential decreases in the so-called jumbo conforming loan limit this fall may be moving to lock in fixed-rate financing.
Unless Congress decides otherwise, the $729,750 cap on jumbo conforming loans in high-cost markets is scheduled to drop to $625,500 on Oct. 1.
In a forecast published last month, MBA economists said they expected rates on 30-year fixed-rate mortgages to average 4.9 percent during the third quarter and 5.2 percent during the final three months of the year. The forecast predicts a gradual rise in rates next year, to an average 5.7 percent during fourth-quarter 2012.
Wednesday, 20 July 2011
5 QUESTIONS TO ASK YOUR MORTGAGE PROFESSIONAL
Everyone knows you’re supposed to be proactive and assertive when you take out a mortgage, carefully collecting and evaluating all sorts of information before you make the biggest deal of your life. But when the mortgage broker starts shooting sheaves of papers (OK, PDF documents) at you, it’s easy for your eyes to glaze over at the sight of so many zeroes, and tempting just to start signing whatever it takes to get that house!
Here are 5 questions every smart buyer (or refi-er) should add to the list of issues to cover with your mortgage professional:
Here are 5 questions every smart buyer (or refi-er) should add to the list of issues to cover with your mortgage professional:
- Are you a bank, a broker, or both? Generally speaking, mortgage lenders that are banks or have their own banking divisions (which many reputable brokerages do) have more control over the appraisal process, including the ability to submit your file to a pool of appraisers they know have some knowledge of your local neighborhood. Given the fact that non-local appraisers and the inability to communicate with appraisers under relatively new guidelines for brokerages are responsible for killing loads and loads of deals, working with a company that is or has a bank could be a deal-saving move, especially if the property is in an area that hasn’t had many recent sales or is otherwise challenging to appraise.
Also, some broker/banks that originate loans and sell them straight to Fannie Mae or Freddie Mac under the FHA loan programs offer the same benefits of an FHA loan - low down payment and moderate qualification guidelines - without the “overlays” imposed by some larger banks, which actually place a more restrictive set of guidelines on FHA loan programs. For example, FHA guidelines do not impose a minimum credit score, but many banks overlay their own 640 minimum FICO requirement. Broker/banks that sell straight to Fannie and Freddie often mirror the FHA minimum guidelines precisely.
Finally, brokerages with their own in-house bank and a large roster of lenders and programs provide the advantage of offering a wider range of fallback options than plain old banks or plain old brokerages - Plans A, B, C and D, if you will - which many borrowers need these days, in the (increasingly common) case your first choice bank or loan program doesn’t work out.
- Will you explain my Good Faith Estimate to me? May I also have a fee sheet or estimate of funds to close? The current, national standard Good Faith Estimate (GFE) is pretty clear, clarifying all sorts of deal points, from the broker’s commissions to the costs associated with the loan, but as a point of customer service, you should ask your mortgage pro to explain it to you (if they don’t do so under their own initiative).
The one shortfall of the the latest edition of the GFE is that, while it clearly shows the costs associated with a particular loan scenario, it does not always show so clearly the actual amount of funds you’ll need to close the transaction (which might be more or less than those costs)! So, ask your mortgage representative to prepare a fee sheet or an estimate of funds to close as early in the transaction as possible.
- How long will it take to close my loan? How much time will I need for loan and appraisal contingencies? The time frames for closing your mortgage - which often drive the time frames for closing your home purchase - often vary widely depending on the type of loan and even the type of lender you work with.(Large bank loans originated by the bankers who sit inside the branch are notoriously slower to close, on average, than loans originated by brokers.) Similarly, the time it takes to get through the FHA loan appraisal and underwriting process might be much longer than it would take, all things being equal, to clear those hurdles and remove your loan and appraisal contingencies on a Conventional (i.e., non-FHA) mortgage.
When you first meet with your prospective mortgage pro, talk with them about these time frames, so they can help you set realistic expectations and insert realistic time frames into your offer when you make it, to minimize the drama of a contingency clock that ticks way faster than your mortgage process.
- Are there any fees for the mortgage loan application/approval process? Some lenders charge for credit checks up front, and most require that you pay for your appraisal in advance (although the latter happens only after you find and get into contract on your property. One of the first questions you should ask, when you sit down with a new mortgage broker is how much cash you’ll have to come up with just for the privilege of having them run your application and take the first steps down the road to loan approval.
- How long have you been originating loans? And how long have you been with your company? Mortgage pros who have been around for a long time have the knowledge of advance troubleshooting, workarounds and backup plans, and the current underwriting practices it takes to get a loan closed in this restrictive mortgage market. If you found them in some way other than a referral, you can even ask for references from a few clients. Most mortgage pros who have been in business for awhile will be able to give you names and numbers of clients they’ve worked with on multiple purchases and/or refis: that’s a very good sign. You’ll rest a lot easier if you know that your loan is in the hands of a seasoned pro who others like you trust with their largest asset - and largest financial obligation.
From Tara @ Trulia
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