Your information … a hot commodity
Having credit checked is an important and necessary step in the home buying process. But very few people realize that each time their credit is checked, the “inquiry data” that the credit bureaus (Equifax, TransUnion, Innovis or Experian) have on file have now become a commodity. This information is being sold by the credit bureaus to other lenders…and also to companies that sell and resell the same names and personal information.
That’s right – the credit bureaus have found a way to increase their revenues at your expense….and without your permission.
These “inquiry leads” include name, address, phone numbers (including unlisted), credit score, current debt and debt history, property information, age, gender and estimated income. They are marketing personal, confidential information to competing creditors…and making millions. Your privacy is being sold, not just once, but over and over again.
And lenders that purchase these leads at a premium will then do everything they can to recoup their investment and turn a hefty profit. Super sneaky bait and switch tactics are being used to lure clients away from their reputable lender. Clients have even been called by disreputable lenders and told that the lender they had been speaking to previously “passed on” the information to them, because they knew that they’d be able to offer much better interest rates and terms. Ouch!
Just Say “No”
The consumer credit reporting industry has provided a way to “opt out” and remove your name from these lists. You can contact them by phone at 1-888-567-8688 or online at www.optoutprescreen.com You must opt out at least 48 hours prior to having your credit checked to make sure it is processed in time. You can choose a five year or lifetime option, and the lifetime option does require a signed form. If a credit report needs to be run prior to the 48 hour waiting period – at least you are aware and informed, and can be on the lookout for suspicious phone calls or mailers from someone who has purchased your data.
The good news is by opting-out you can make it stop right away and protect yourself from “pre-approved credit offers” arriving via mail, which is one of the leading causes of identity theft in the US.
Take your privacy back. Take five minutes right now – opt out, and pass it on. Refuse to be a part of this system.
Monday, August 27, 2007
Tuesday, August 21, 2007
Mortgage shopping effectively
Once you are satisfied that you are working with a top-quality professional mortgage advisor, here are the rules and secrets you must know to “shop” effectively.
First, IF IT SEEMS TOO GOOD TO BE TRUE, IT PROBABLY IS.
But you didn’t really need us to tell you that, did you? Mortgage money and interest rates all come from the same places, and if something sounds really unbelievable, better ask a few more questions and find the hook. Is there a prepayment penalty? If the rate seems incredible, are there extra fees? What is the length of the lock-in? If fees are discounted, is it built into a higher interest rate?
Second, YOU GET WHAT YOU PAY FOR.
If you are looking for the cheapest deal out there, understand that you are placing a hugely important process into the hands of the lowest bidder. Best case, expect very little advice, experience and personal service. Worst case, expect that you may not close at all. All too often, you don’t know until it’s too late that cheapest isn’t BEST. But if you want the cheapest quote – head on out to the Internet, and I wish you good luck. Just remember that if you’ve heard any horror stories from family members, friends or coworkers about missed closing dates, or big surprise changes at the last minute on interest rate or costs…these are often due to working with discount or internet lenders who may have a serious lack of experience. Most importantly, remember that the cheapest rate on the wrong strategy can cost you thousands more in the long run. This is the largest financial transaction most people will make in their lifetime. That being said – I'm not the cheapest. Of course my rates and costs are very competitive, but I have also invested in the systems and team needed to ensure the top quality experience that you deserve.
Third, MAKE CORRECT COMPARISONS.
When looking at estimates, don’t simply look at the bottom line. You absolutely must compare lender fees to lender fees, as these are the only ones that the lender controls. And make sure lender fees are not “hidden” down amongst the title or state fees. A lender is responsible for quoting other fees involved with a mortgage loan, but since they are third party fees – they are often under-quoted up front by a lender to make their bottom line appear lower, since they know that many consumers are not educated to NOT simply look at the bottom line! APR? Easily manipulated as well, and worthless as a tool of comparison.
Fourth, UNDERSTAND THAT INTEREST RATES AND CLOSING COSTS GO HAND IN HAND.
This means that you can have any interest rate that you want – but you may pay more in costs if the rate is lower than the norm. On the other hand, you can pay discounted fees, reduced fees, or even no fees at all – but understand that this comes at the expense of a higher interest rate. Either of these balances might be right for you, or perhaps somewhere in between. It all depends on what your financial goals are. A professional lender will be able to offer the best advice and options in terms of the balance between interest rate and closing costs that correctly fits your personal goals.
Fifth, UNDERSTAND THAT INTEREST RATES CAN CHANGE DAILY, EVEN HOURLY.
This means that if you are comparing lender rates and fees – this is a moving target on an hourly basis. For example, if you have two lenders that you just can’t decide between and want a quote from each – you must get this quote at the exact same time on the exact same day with the exact same terms or it will not be an accurate comparison. You also must know the length of the lock you are looking for, since longer rate locks typically have slightly higher rates.
As you can imagine, I wouldn’t be encouraging you to shop around if I weren’t confident that I can give you a great value and serve you the very best.
First, IF IT SEEMS TOO GOOD TO BE TRUE, IT PROBABLY IS.
But you didn’t really need us to tell you that, did you? Mortgage money and interest rates all come from the same places, and if something sounds really unbelievable, better ask a few more questions and find the hook. Is there a prepayment penalty? If the rate seems incredible, are there extra fees? What is the length of the lock-in? If fees are discounted, is it built into a higher interest rate?
Second, YOU GET WHAT YOU PAY FOR.
If you are looking for the cheapest deal out there, understand that you are placing a hugely important process into the hands of the lowest bidder. Best case, expect very little advice, experience and personal service. Worst case, expect that you may not close at all. All too often, you don’t know until it’s too late that cheapest isn’t BEST. But if you want the cheapest quote – head on out to the Internet, and I wish you good luck. Just remember that if you’ve heard any horror stories from family members, friends or coworkers about missed closing dates, or big surprise changes at the last minute on interest rate or costs…these are often due to working with discount or internet lenders who may have a serious lack of experience. Most importantly, remember that the cheapest rate on the wrong strategy can cost you thousands more in the long run. This is the largest financial transaction most people will make in their lifetime. That being said – I'm not the cheapest. Of course my rates and costs are very competitive, but I have also invested in the systems and team needed to ensure the top quality experience that you deserve.
Third, MAKE CORRECT COMPARISONS.
When looking at estimates, don’t simply look at the bottom line. You absolutely must compare lender fees to lender fees, as these are the only ones that the lender controls. And make sure lender fees are not “hidden” down amongst the title or state fees. A lender is responsible for quoting other fees involved with a mortgage loan, but since they are third party fees – they are often under-quoted up front by a lender to make their bottom line appear lower, since they know that many consumers are not educated to NOT simply look at the bottom line! APR? Easily manipulated as well, and worthless as a tool of comparison.
Fourth, UNDERSTAND THAT INTEREST RATES AND CLOSING COSTS GO HAND IN HAND.
This means that you can have any interest rate that you want – but you may pay more in costs if the rate is lower than the norm. On the other hand, you can pay discounted fees, reduced fees, or even no fees at all – but understand that this comes at the expense of a higher interest rate. Either of these balances might be right for you, or perhaps somewhere in between. It all depends on what your financial goals are. A professional lender will be able to offer the best advice and options in terms of the balance between interest rate and closing costs that correctly fits your personal goals.
Fifth, UNDERSTAND THAT INTEREST RATES CAN CHANGE DAILY, EVEN HOURLY.
This means that if you are comparing lender rates and fees – this is a moving target on an hourly basis. For example, if you have two lenders that you just can’t decide between and want a quote from each – you must get this quote at the exact same time on the exact same day with the exact same terms or it will not be an accurate comparison. You also must know the length of the lock you are looking for, since longer rate locks typically have slightly higher rates.
As you can imagine, I wouldn’t be encouraging you to shop around if I weren’t confident that I can give you a great value and serve you the very best.
Monday, August 20, 2007
Considering any shorter term mortgage?
"... when considering any shorter term mortgage, make sure to ask yourself the right questions .."
How Much Will I Save on My Interest Rate?
It is a fact that shorter term mortgages may provide you with a lower interest rate and overall lower interest payment. However, there is a trade off, be prepared for a larger monthly payment.
Should I Do A Longer Term Mortgage and Make Extra Payments?
For example, a 15 year mortgage locks you into a set payment. With a longer term mortgage you can make extra payments which will decrease the number of years of mortgage payments, but you need self discipline to actually make the payments. You really have to look yourself in the mirror to answer this question.
What Is the Benefit of More Equity Sooner?
The benefit of home equity is that it provides a ready source to borrow against. Often it makes sense to borrow against yourself (via your home equity).
How Long Do I Want To Have A Mortgage?
Whether you are young or mature, you may want to eliminate this obligation sooner. You may, for example, want to time at the end of your mortgage to enjoy your retirement. Consider the benefits of earlier relief from this commitment, but don't forget to consider the income tax implications.
Should I Use My Home As A Primary Investment?
By obliging in to a shorter term mortgage you are effectively increasing your exposure to real estate, perhaps leaving less for other investments. Ask yourself, "How diversified do I want my portfolio to be" before making this financial commitment.
In any financial plan, seek expert help. Contact me for help. kcsalley@gmail.com
How Much Will I Save on My Interest Rate?
It is a fact that shorter term mortgages may provide you with a lower interest rate and overall lower interest payment. However, there is a trade off, be prepared for a larger monthly payment.
Should I Do A Longer Term Mortgage and Make Extra Payments?
For example, a 15 year mortgage locks you into a set payment. With a longer term mortgage you can make extra payments which will decrease the number of years of mortgage payments, but you need self discipline to actually make the payments. You really have to look yourself in the mirror to answer this question.
What Is the Benefit of More Equity Sooner?
The benefit of home equity is that it provides a ready source to borrow against. Often it makes sense to borrow against yourself (via your home equity).
How Long Do I Want To Have A Mortgage?
Whether you are young or mature, you may want to eliminate this obligation sooner. You may, for example, want to time at the end of your mortgage to enjoy your retirement. Consider the benefits of earlier relief from this commitment, but don't forget to consider the income tax implications.
Should I Use My Home As A Primary Investment?
By obliging in to a shorter term mortgage you are effectively increasing your exposure to real estate, perhaps leaving less for other investments. Ask yourself, "How diversified do I want my portfolio to be" before making this financial commitment.
In any financial plan, seek expert help. Contact me for help. kcsalley@gmail.com
Thursday, August 9, 2007
Construction to Permanent Loan
Construction-to-Permanent Loan is a one-time close loan designed to finance the construction of a primary residence or second home and obtain permanent financing. One-time close means one loan-start to finish. You sign one set of loan documents to cover both the interim construction phase and the permanent loan phase. This eliminates the need for multiple loans, and duplicate fees to get into your new home. When the construction has been completed, the loan automatically converts to a permanent mortgage loan without another application or additional closing fees.
Contact me to learn more.
Contact me to learn more.
Wednesday, August 8, 2007
Type of Mortgages
At Bank of Ann Arbor Mortgage Co. LLC, you have local access to the mortgage services, competitive rates and expertise you need. Whether purchasing or refinancing your primary residence or vacation home, you'll find working with us is easy.
Fixed rate mortgages offer the certainty of a fixed payment and interest rate over the life of the loan. Terms available: 10, 15, 20 and 30 years.
Adjustable Rate mortgages provide for low rate initially that later adjusts yearly for the remainder of the term. Terms available: 1, 3, 5 or 7 years (interest rate fixed for first set number of years then is adjusted annually for the remaining years of the term).
Balloon Mortgages provides for a low monthly payment and helps individuals who have shorter term housing goals. Terms available: 3, 5, 7 years.
Jumbo mortgages are available for home loans of $417,000 or greater at competitive prices.
Bridge loans can provide you with up to 90% of the appraised value of your current home as short-term financing on a new home.
Combination loans have become a popular option for home owners who want financing for more than 80% of the home's value. A first mortgage finances 80% of the value of the home with the second mortgage (often a home equity loan) covering the balance of the purchase amount. This eliminates the need for private mortgage insurance (PMI), saving you money.
Fixed rate mortgages offer the certainty of a fixed payment and interest rate over the life of the loan. Terms available: 10, 15, 20 and 30 years.
Adjustable Rate mortgages provide for low rate initially that later adjusts yearly for the remainder of the term. Terms available: 1, 3, 5 or 7 years (interest rate fixed for first set number of years then is adjusted annually for the remaining years of the term).
Balloon Mortgages provides for a low monthly payment and helps individuals who have shorter term housing goals. Terms available: 3, 5, 7 years.
Jumbo mortgages are available for home loans of $417,000 or greater at competitive prices.
Bridge loans can provide you with up to 90% of the appraised value of your current home as short-term financing on a new home.
Combination loans have become a popular option for home owners who want financing for more than 80% of the home's value. A first mortgage finances 80% of the value of the home with the second mortgage (often a home equity loan) covering the balance of the purchase amount. This eliminates the need for private mortgage insurance (PMI), saving you money.
Tuesday, August 7, 2007
Think you can't afford to buy a home? Think again.
Today, home ownership can be a reality for most anyone! In as little as 30 days, you can go from renting to owning your first home.
We have programs that allow first-time home buyers to:
* Finance 97% or more of your new home's value.
* Contribute as little as 1% of the home's value or $500, whichever is less.
* Finance 100% of the home's value plus closing costs.
At Bank of Ann Arbor, we are experts in explaining and leading you through the home buying process. That's what personal service from a local bank means.
Learn more:
http://www.bankofannarbor.com/mortgage/kevin.aspx
We have programs that allow first-time home buyers to:
* Finance 97% or more of your new home's value.
* Contribute as little as 1% of the home's value or $500, whichever is less.
* Finance 100% of the home's value plus closing costs.
At Bank of Ann Arbor, we are experts in explaining and leading you through the home buying process. That's what personal service from a local bank means.
Learn more:
http://www.bankofannarbor.com/mortgage/kevin.aspx
Monday, August 6, 2007
New Tax Deduction Created For Mortgage Insurance
Mortgage insurance will be tax-deductible in 2007. For some homeowners, the new law means it will cheaper to get mortgage insurance instead of getting piggyback loans.
The 109th Congress passed the tax law in its final hours. Hundreds of thousands of homeowners will save a total of $91 million when they file their tax returns in 2008, according to estimates prepared by the mortgage insurance industry.
Bottom line for consumers: Don't get a piggyback loan without taking a serious look at mortgage insurance, because mortgage insurance is likely to be cheaper in the long run, and it might even cost less in the short run.
According to an analysis by Bankrate, a homeowner with a $180,000 mortgage would save about $351 in taxes per year because of the law. That assumes that the borrower has good credit and is in the 25 percent tax bracket.
The tax deduction applies only to mortgages that are closed in 2007. If you have a loan with mortgage insurance in 2006, you won't be able to deduct the premiums in the 2007 tax year unless you refinance in 2007.
There are income limits. You get the full deduction if your adjusted gross income is $100,000 or less. The amount you can deduct phases out rapidly after that, and no mortgage insurance deduction is available if you make more than $110,000.
This is a one-year deal, and Congress would have to renew the deduction to make it apply for the 2008 tax year and beyond. Congress probably will extend the deduction, but you can't know for sure.
The 109th Congress passed the tax law in its final hours. Hundreds of thousands of homeowners will save a total of $91 million when they file their tax returns in 2008, according to estimates prepared by the mortgage insurance industry.
Bottom line for consumers: Don't get a piggyback loan without taking a serious look at mortgage insurance, because mortgage insurance is likely to be cheaper in the long run, and it might even cost less in the short run.
According to an analysis by Bankrate, a homeowner with a $180,000 mortgage would save about $351 in taxes per year because of the law. That assumes that the borrower has good credit and is in the 25 percent tax bracket.
The tax deduction applies only to mortgages that are closed in 2007. If you have a loan with mortgage insurance in 2006, you won't be able to deduct the premiums in the 2007 tax year unless you refinance in 2007.
There are income limits. You get the full deduction if your adjusted gross income is $100,000 or less. The amount you can deduct phases out rapidly after that, and no mortgage insurance deduction is available if you make more than $110,000.
This is a one-year deal, and Congress would have to renew the deduction to make it apply for the 2008 tax year and beyond. Congress probably will extend the deduction, but you can't know for sure.
Welcome to Ann Arbor and its wonderful local community.
contract info:
Kevin Salley
734-327-4411 office
Local sites of interest:
http://www.bankofannarbor.com/links.aspx
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