Better Credit Scores Get Better Mortgage Rates in Mesa and Gilbert

November 2, 2010 By Leave a Comment


Mesa Mortgage Interest Rates and rates for Gilbert home buyers have been falling since early-April 2010. Whether you’re looking to refinance or buy a home, however, know that not everyone will qualify for today’s low rates.

Mortgage approvals are primarily based on good income, good equity and strong credit, and, without all three, the best rates of the day remain out of reach. Now, you can’t always ask for a raise and equity is a function of the housing market, but you can do something about your credit score.

In this 4-minute segment from NBC’s The Today Show, you learn some credit basics to help propel your score higher:

  • There’s no “quick fix” for credit. Time + Good Credit Behavior = Better FICOs.
  • Pay every bill when it comes due. Even one late payment can damage your score.
  • Don’t close old credit cards

Also among the segment’s advice is to stop worrying about whether rates have bottomed. Refinance today if it makes financial sense. Then, if, by chance, rates fall in the future, just refinance again.  Don’t be greedy, we’re told.

Filed Under: Credit Scoring, Financing Information, Mortgage Rates Tagged With: , ,

Mortgage Scams Still Common – What To Avoid

October 15, 2010 By Leave a Comment

Despite tougher mortgage guidelines and better loan disclosures for consumers, mortgage fraud is on the rise, according to the FBI.

Fraud has many varieties and it’s estimated cost to the nation is between $4-6 billion annually.  Today, common mortgage fraud scams target homeowners behind in their mortgage payments and/or facing foreclosure. And, despite the hordes of legitimate organizations that dedicate themselves to helping consumers, mortgage fraudsters proliferate.

In this 3-minute piece from NBC’s The Today Show, you’ll learn to spot common frauds, and to avoid them.

Some of the frauds highlighted include:

  1. The Rent-to-Buy arrangement
  2. The Bait-and-Switch
  3. The “Phantom fees”

With respect to mortgage paperwork, it’s always wise to read what you’re signing, and to take time to understand what it means. If you’re uncomfortable reading mortgage documents, ask for an attorney’s help. And don’t worry if you don’t have the budget — many states offer free or discounted help via advocacy groups.

Filed Under: Household Finances Tagged With: ,

Rent A Home Or Buy A Home: The Case For Both Sides in Mesa

September 17, 2010 By Leave a Comment

I get a lot of folks asking me is now a good time to buy a house, or should I continue to rent. To be sure, there is no clear cut answer that I can give that covers everyone at all times. What you should or shouldn’t do is really based on your personal situation for the most part, and some consideration of the market. Here is a video: 3-minute joint interview from NBC’s The Today Show, to hear a general case for both renting and buying a house.

Consider renting because:

  • No cash for down payment,
  • Ongoing, annual cost of home maintenance — estimated at 2% of a home’s value can be expensive,
  • Ability to “follow a job” to a new town or region without having to worry about selling your home first,
  • If you know you are not going to live somewhere for at least 5 years.

Consider buying a home because:

  • Mortgage rates are low and each 1% drop to rates equates to a 9% drop to home price,
  • Home prices are very attractive and near the bottom if not at the bottom of the current cycle,
  • With so many houses on the market, home buyers can zero in on a particular neighborhood with particular schools or walkability, for example, better than renters
  • A home can be thought of as a sort of “forced savings” plan for families that want it meaning over time the homeowner will payoff their mortgage and build equity in their home, giving them a valuable asset they can sell for $$$ when needed for family needs, retirement etc.
  • 1% Down Payment Assistance in Arizona for home prices up to $359,000

Whether buying or renting, especially in Mesa AZ where I do most of my real estate transactions, don’t try to go at it alone. There’s lot of resources online, including my website to help you decide whether buying or selling a house is right for you. Contact me to talk about possiblities.

Filed Under: Budgeting, Mesa News Tagged With: ,

Expected Changes To Your Income and Employment – Disclose Or Not

August 13, 2010 By Leave a Comment

Recently, The New York Times ran an important story concerning pregnancy and mortgage approvals. Titled “Need a Mortgage? Don’t Get Pregnant“, the article discussed the difficulties that expecting and recently-expanded families are having with their mortgage financing.

The crux of the issue is that maternity/paternity leave often leads to a change in household income and mortgage lenders will no longer assume one or both parents will go back to work full-time.  The loss of income can raise a household’s debt-to-income ratio to unlendable levels.

Now, your loan officer cannot ask you about a pregnancy; such questions would be in violation of Equal Credit Opportunity Act. But he can ask if whether you expect your future employment and income situation to change. This would be a perfect time to broach the topic. And you should. If you’re found to have withheld employment and income information from your lender at a later date, it could result in an immediate loan denial plus a loss of earnest monies paid.

Across both pieces, though, the prevailing message is this: Families concurrently planning to (1) have a baby and (2) buy a home should be up-front and forthcoming with their loan officers. Financing is often still available for families expecting an addition — there’s just some extra paperwork though which to work.

Be prepared for that paperwork and you’re more likely to get your loan.

Filed Under: Mortgage Guidelines Tagged With: , ,

Financial Advice For Households – Which Bills Should Be Paid First?

July 14, 2010 By Leave a Comment

Morning television can be “light”, but as far as personal finance interviews go, this Suze Orman segment from The Today Show is loaded with practical financial planning advice.

Titled “What Should You Do First?”, Ms. Orman addressed the real-life, money management conundrums households face, such as:

  • Should I pay off credit card bills, or create an emergency cash fund?
  • Should I pay off student loan debt, or pay off credit card bills?
  • Should I save for a child’s college tuition, or save for my retirement?

In 5 minutes, the segment covers a half-dozen scenarios like the ones above, explaining what to do, and why to do it.

Ms. Orman’s style may not interest you and financial advice is rarely universal, but the piece is worth watching.

Watch the clip on the NBC website.

Filed Under: Household Finances Tagged With: ,

Protect Your Online Financial Identity If You Shop Or Pay Bills Online

June 23, 2010 By Leave a Comment

In May 2010, Retail Sales at non-store retailers — a category that includes Amazon and eBay — topped $29 billion, up 16 percent from May 2009. Clearly, Americans are doing an increasing amount of shopping online.  And we’re paying our bills online, too.

But how well are we protecting our identities?

In this 5-minute piece from NBC’s The Today Show, you’ll learn the basics of online fraud and methods to minimize the likelihood of identity theft.  Furthermore, the tips go beyond the basic “choose a challenging password”.  For example, you’ll hear about:

  • Why you shouldn’t pay bills from a coffee shop
  • Who might be hiding behind an unprotected public wifi network
  • The dangers of storing credit card numbers with an online retailer

And, although, at one point, the interviewee goes over the top with respect to spyware and anti-phishing prevention, the point being made is a good one — you can’t be too careful with your online financials and common sense goes a long way.

Filed Under: Household Finances Tagged With: ,

Refinancing Your Mortgage Loan – Is Now The Time?

May 29, 2010 By Leave a Comment

Because of strife in Greece, Spain and North Korea, conforming mortgage rates are back to all-time lows. They’re at levels not seen in 50 years.  For homeowners that missed the Refi Boom of November 2009, it’s a second chance.

In this well-presented, 3-minute video from NBC’s The Today Show, you’ll get tips getting low rates and choosing the best time to lock in.

Some of the topics covered include:

  • Why were the experts wrong about rates moving higher this summer?
  • How much money can you save with a 1 point drop in your interest rate?
  • Should you buy a bigger home now that rates have fallen?

The advice in the piece is matter-of-fact and centered.  There is no cheerleading and the message is honest. Mortgage rates are low and they likely won’t stay that way.  If you’ve been thinking about a refinance, talk to your loan officer as soon as possible.

Filed Under: Mortgage Rates Tagged With: ,

How To Dispute Your Property Tax Bill Without A Lawyer

April 22, 2010 By Leave a Comment

More than 60 percent of U.S. homes are “over-assessed”, says an industry trade group. Homeowners in Tempe pay more in property taxes than they otherwise might have to.  You could be one of them.

Have you considered fighting your real estate tax bill?

In this 4-minute piece from The Today Show, you’ll learn:

  • When to file your tax bill dispute for the best chances of winning
  • How to pull your “property card” and check for tax bill-raising errors
  • What to do if the taxing authority turns down your request

Most importantly, you’ll learn that don’t need to hire an attorney to fight your tax bill.  You just need to be prepared.  Do your research and make your case. It’s estimated that nearly half of all contesting homeowners are successful.

Filed Under: Real Estate Taxes Tagged With: ,

Claim Your Federal Tax Credits (Even If You Have Already Filed)

April 8, 2010 By Leave a Comment

Taxes are due April 15 and if you’re among the millions of Americans who wait until the last week to file, here’s a video interview that could help you reduce your federal tax liability.

Originally broadcast by NBC’s The Today Show, the 4-minute piece reviews various tax credits and deductions, plus some recent tax law changes.  A few of the topics covered include:

  • Tax filers receiving larger “personal exemptions” in 2009 versus 2008
  • Unemployment income recipients being required pay taxes beyond the first $2,400 received
  • The “first time” home buyer credit being extended to non-first time home buyers for up to $6,500

The interview also talks about how taking a parent, child or other family member into your home may change your tax filing status and reduce your tax liability.

Even if you’ve filed your taxes already, watch the video above. You may find that you missed a potential deduction. If that’s the case, consider filing an amended return with the IRS to recapture the credits you left on the table.  Most times, the benefits of re-filing will outweigh the costs of doing it.

Be sure to talk with your tax professional for personal tax advice.

Filed Under: Tax Tips Tagged With: , , ,

Get Better Mortgage Rates with Better Credit Scores

February 5, 2010 By Leave a Comment

It seems like the importance of a better credit score getting stronger as mortgage lenders tighten mortgage loan approval requirements for home buyers that I work with in Mesa and around the southeast valley.  Credit scores not only make the difference between a mortgage approval and mortgage turn-down, but they also play a large role in determining your actual mortgage interest rate and discount points that you may have to pay to get the rate you want.

In the 3-minute piece, the NBC Today Show talked about 7 ways that homebuyers ruin their credit — often by accident.  Some of the highlighted mistakes include:

  • Closing open credit cards
  • Buying appliances during the mortgage application process and just prior to closing
  • Asking creditors to lower credit balances prior to closing

In general, if you have a 740 FICO or above, you will most likely qualify for the best interest rates and programs with the lowest fees.  Below 740, though, every 20 points adds to the damage.  Watch the video and apply what you can to your own situation.  The more you know, the more you can save.

Filed Under: Financing Information Tagged With: , , , , ,