As you may have heard, the Mortgage industry is getting pretty wary about clients whose credit scores are less than perfect. So what does it mean for you?
Well, for anyone with a mediam credit score below 680, that means some more scrutiny of your credit history from mortgage underwriters. Just in case you are wondering, about 42% of Americans have a credit score between 600-700. That is alot of people! Does it mean that you can't get a loan...no. Does it mean that if you have some "skeletons" in your financial closet you won't get some scrutiny...yes.
So what can you do about it? Check your credit score. There are a number of websites that allow you to check and monitor your score. Most of them will give you a 1 bureau report free and then charge you $10-15 per month to monitor your score and any changes to your credit. In this bloggers opinion, this is a good investment! I pay for monitoring myself and have found ut exceptionally enlightening to watch my score. I feel in actual control of my score and it's moving Northward in the credit ranks.
So, if you are thinking about buying a home in the near future, check that credit and get in control. Getting your score to at least 680 will save you time, money and stress!
Monday, March 31, 2008
Tuesday, March 25, 2008
Restraints on Mortgage Lenders Fannie Mae and Freddie Mac are Loosened
Federally-backed mortgage lenders Fannie Mae and Freddie Mac got a reprieve from the government yesterday. Currently, the two companies together are required to maintain a nearly 20 Billion Dollar cash cushion at all times to ensure solvancy. The new measure would reduce that cushion requirement by 1/3 so that the lenders will have more cash to expand their roles in the tight housing market.
Monday, March 24, 2008
Forbes Magazine Notices Jackson!
Recently, Forbes Magazine notified Jackson officials that they have identified Jackson, MI as one of the "Best Small Metropolitan Areas to Live and Work". It is unclear when the list will appear online or in print, but this is clearly good for Jackson's image as it tries to position itself Regionally along with Lansing and Ann Arbor. Keep you eyes open for the article!
Wednesday, March 19, 2008
Fed Gets Agressive, Stock Market Responds
In an effort to calm investors and stop the country from moving further into a Recession, the Federal Reserve made an agressive .75 point cut in the prime interest rate yesterday. The stock market welcomed the news by surging up 420.21 points.
While this all sounds positive, how will it effect you? Here are a few speculations on that:
1. Credit card companies may lower your rates, but there could be up to a 3 month delay (it seems that reductions get passed on to you much slower than increases).
2. If you have an adjustable rate mortgage (ARM) you may see a slight reduction as the rate reduces. I wouldn't expect more than $25 - $50 in savings but it is something.
This is all assuming that the rate will stay low. It is now the lowest prime rate since 2004. I am pretty convinced that the rate will continue to go lower in an effort to "smoke and mirror" the economy into restarting.
The bottom line is that the Federal Reserve wants YOU to start feeling positive and euphoric again and to start spending again.
The best lesson that could be learned from all of this (in my opinion, anyway) is to spend less money and save more. The racing economy of the past 5 years just can't continue. Personal debt is out of control and that is what has lead to people being way over-extended. When this is all balanced out hopefully everyone will be a bit wiser about budgeting ther money. Until then, just be cautious. The economy will come back, it always does.
What are your thoughs?
While this all sounds positive, how will it effect you? Here are a few speculations on that:
1. Credit card companies may lower your rates, but there could be up to a 3 month delay (it seems that reductions get passed on to you much slower than increases).
2. If you have an adjustable rate mortgage (ARM) you may see a slight reduction as the rate reduces. I wouldn't expect more than $25 - $50 in savings but it is something.
This is all assuming that the rate will stay low. It is now the lowest prime rate since 2004. I am pretty convinced that the rate will continue to go lower in an effort to "smoke and mirror" the economy into restarting.
The bottom line is that the Federal Reserve wants YOU to start feeling positive and euphoric again and to start spending again.
The best lesson that could be learned from all of this (in my opinion, anyway) is to spend less money and save more. The racing economy of the past 5 years just can't continue. Personal debt is out of control and that is what has lead to people being way over-extended. When this is all balanced out hopefully everyone will be a bit wiser about budgeting ther money. Until then, just be cautious. The economy will come back, it always does.
What are your thoughs?
Monday, March 17, 2008
Citizens Fighting Assesments
This article was in the CitPat today. We have heard more and more about this issue. Is it effecting you? Is it fair?
Chris Hines paid $64,900 in 2007 for his fixer-upper, a modest Vandercook Lake home he bought off the foreclosure market.
The Bagg Avenue house has an attached garage, but Hines describes it as a 1,040-square-foot "dirt crawl space" that needs about $8,000 worth of work.
That's why he was shocked when he opened his assessment notice last month to find his home is valued at $124,400 and his property taxes increased about $500.
"If I wanted to pay that much in taxes I would have bought a nicer home," Hines said. "I'm fighting it all the way if I have to."
Hines is one of hundreds of disgruntled homeowners in Jackson County who went to boards of review this month to appeal their property taxes. Most boards are wrapping up deliberations, and appointments are no longer available.
Many of those who appealed, including Hines, will have to wait weeks until a final determination is made and a notice is sent in the mail. If a homeowner still is unsatisfied with the result, an appeal can be made to the Michigan Tax Tribunal.
Local assessors say some protests this year stem from confusion surrounding Proposal A, which was passed by Michigan voters in 1994. It limits property tax increases to the rate of inflation or 5 percent, whichever is less. It was designed to prevent taxable values from growing as fast as property values.
But many homeowners this year are seeing their property taxes increase even though assessed values are sliding in the midst of a slumping housing market. This irregular occurrence prompted a flood of phone calls to assessors and many appointments for appeals.
But a clause in Proposal A makes Hines' case distinctive.
A property's assessed value is 50 percent of what an assessor has determined to be the market value of the property. Many factors, including improvements and the number of houses sold in the area, are used to determine this value.
Under Proposal A, the tax cap is lifted the year after a home is purchased and the taxable value rises to become the assessed value. The problem is, in Hines' opinion, his home isn't worth $124,400.
Seeking a reduction, Hines brought pictures of his home and neighboring homes to the Board of Review on Tuesday to help prove his case. He was one of about 55 homeowners appealing in person to the Summit Township panel last week. The board, along with many others in the county, also accepts written appeals.
Though many townships said they didn't see a noticeable increase in appeals this year, Leoni Township residents filled all 96 available appointments and the township was to extend its deadline to accept written appeals.
Because new homeowners typically see their taxes shoot up, the township encourages them to make review appointments.
"It's the property owners' time to be heard," said Cary Stiles, Leoni Township assessor. "We're in charge of over 10,000 parcels. Take your one piece of 10,000 and really look at it."
Stiles said the board provides appealing property owners with a copy of their neighborhood's sales study.
She said the board asks the homeowners to provide any information relative to their appeal, which can include sketches, photos or written descriptions. The board reviews the information and makes a determination at a later date.
"We think everyone should have a fair shot at appealing their taxes," she said. "And we want to answer their questions."
Let us know what you think.
Chris Hines paid $64,900 in 2007 for his fixer-upper, a modest Vandercook Lake home he bought off the foreclosure market.
The Bagg Avenue house has an attached garage, but Hines describes it as a 1,040-square-foot "dirt crawl space" that needs about $8,000 worth of work.
That's why he was shocked when he opened his assessment notice last month to find his home is valued at $124,400 and his property taxes increased about $500.
"If I wanted to pay that much in taxes I would have bought a nicer home," Hines said. "I'm fighting it all the way if I have to."
Hines is one of hundreds of disgruntled homeowners in Jackson County who went to boards of review this month to appeal their property taxes. Most boards are wrapping up deliberations, and appointments are no longer available.
Many of those who appealed, including Hines, will have to wait weeks until a final determination is made and a notice is sent in the mail. If a homeowner still is unsatisfied with the result, an appeal can be made to the Michigan Tax Tribunal.
Local assessors say some protests this year stem from confusion surrounding Proposal A, which was passed by Michigan voters in 1994. It limits property tax increases to the rate of inflation or 5 percent, whichever is less. It was designed to prevent taxable values from growing as fast as property values.
But many homeowners this year are seeing their property taxes increase even though assessed values are sliding in the midst of a slumping housing market. This irregular occurrence prompted a flood of phone calls to assessors and many appointments for appeals.
But a clause in Proposal A makes Hines' case distinctive.
A property's assessed value is 50 percent of what an assessor has determined to be the market value of the property. Many factors, including improvements and the number of houses sold in the area, are used to determine this value.
Under Proposal A, the tax cap is lifted the year after a home is purchased and the taxable value rises to become the assessed value. The problem is, in Hines' opinion, his home isn't worth $124,400.
Seeking a reduction, Hines brought pictures of his home and neighboring homes to the Board of Review on Tuesday to help prove his case. He was one of about 55 homeowners appealing in person to the Summit Township panel last week. The board, along with many others in the county, also accepts written appeals.
Though many townships said they didn't see a noticeable increase in appeals this year, Leoni Township residents filled all 96 available appointments and the township was to extend its deadline to accept written appeals.
Because new homeowners typically see their taxes shoot up, the township encourages them to make review appointments.
"It's the property owners' time to be heard," said Cary Stiles, Leoni Township assessor. "We're in charge of over 10,000 parcels. Take your one piece of 10,000 and really look at it."
Stiles said the board provides appealing property owners with a copy of their neighborhood's sales study.
She said the board asks the homeowners to provide any information relative to their appeal, which can include sketches, photos or written descriptions. The board reviews the information and makes a determination at a later date.
"We think everyone should have a fair shot at appealing their taxes," she said. "And we want to answer their questions."
Let us know what you think.
Thursday, March 13, 2008
Foreclosure "Crisis" Overblown? Yes, says MSN.com
Excerpts from an MSN Article posted on 3/12/08
By Scott Burns (MSN.Com)
Sure, there are pockets of pain around the US, but it's not as if most Americans are losing their homes. More than 99% of homes aren't in foreclosure.
A recent list of year-end mortgage foreclosure rates in 100 top metropolitan areas drew a lot of attention. Released by RealtyTrac, a company that compiles data on home foreclosures, the list showed the number of foreclosure filings in each metro area, the percentage of homes being foreclosed and the percentage change from the previous year.
Though the report had some dismal news -- such as the nearly 4.9% foreclosure rate in the Stockton, Calif., area -- a close look at the data also provides some reassuring information. It tells me, for instance, that the foreclosure crisis is a regional problem, not a systemic one. It could become a systemic problem, of course, but we're a long way from that now.
This news will disappoint the gloom-and-doom crew and all those seeking the excitement of financial upheaval. But it may be time to temper our worry and take a closer look at some of the year-over-year foreclosure statistics:
Though the national rate of foreclosure increased by a whopping 79% between December 2006 and December 2007, the rate was still only 1.033%. Because about 30% of all homes are owned mortgage-free, this means that for all the noise about a crisis, only seven-tenths of 1% of all homes were in foreclosure.
In the top 100 housing markets, the average foreclosure rate was somewhat higher -- 1.38% -- and it was up 78% over the previous year. But if you rank-ordered the list of the top 100 areas, only 34 had foreclosure rates above the group average. Fifty-one areas had rates of 1% or less.
Where does Jackson fall in this equation? We certainly could be considered one of the "pockets of pain" that they refer to. With the major media outlets (including MSN.com focusing on the "Top 100" markets, how accurate is that for Jackson? How bad is it really? Probably not as bad as the media paints it generally, but worse than some areas.
Of course, no statistics in the world can minimize the pain of people here in our community that are going through the foreclosure process.
What are your thoughts? Is the foreclosure rate a "crisis" or just media hype?
Let us know what you think.
By Scott Burns (MSN.Com)
Sure, there are pockets of pain around the US, but it's not as if most Americans are losing their homes. More than 99% of homes aren't in foreclosure.
Though the report had some dismal news -- such as the nearly 4.9% foreclosure rate in the Stockton, Calif., area -- a close look at the data also provides some reassuring information. It tells me, for instance, that the foreclosure crisis is a regional problem, not a systemic one. It could become a systemic problem, of course, but we're a long way from that now.
This news will disappoint the gloom-and-doom crew and all those seeking the excitement of financial upheaval. But it may be time to temper our worry and take a closer look at some of the year-over-year foreclosure statistics:
Though the national rate of foreclosure increased by a whopping 79% between December 2006 and December 2007, the rate was still only 1.033%. Because about 30% of all homes are owned mortgage-free, this means that for all the noise about a crisis, only seven-tenths of 1% of all homes were in foreclosure.
In the top 100 housing markets, the average foreclosure rate was somewhat higher -- 1.38% -- and it was up 78% over the previous year. But if you rank-ordered the list of the top 100 areas, only 34 had foreclosure rates above the group average. Fifty-one areas had rates of 1% or less.
Where does Jackson fall in this equation? We certainly could be considered one of the "pockets of pain" that they refer to. With the major media outlets (including MSN.com focusing on the "Top 100" markets, how accurate is that for Jackson? How bad is it really? Probably not as bad as the media paints it generally, but worse than some areas.
Of course, no statistics in the world can minimize the pain of people here in our community that are going through the foreclosure process.
What are your thoughts? Is the foreclosure rate a "crisis" or just media hype?
Let us know what you think.
Subscribe to:
Posts (Atom)
