You Can’t Compare Rent Payments to House Payments

February 8, 2012 by 7 Comments

buying a foreclosed home in ncBuy a House, Get a Raise! I’ve told people this for years, and they don’t always understand.  You see, when you purchase a house, it gives you a tax incentive, and so if you are paying $1200 a month for a mortgage payment you are likely writing off at least $400 a month in interest and taxes!

So a house / mortgage payment of $1200 does not compare with a rental payment of the same thing!  Buying a house can be an emotional experience,  but there are benefits to homeownership too!

There are some GENUINE Deals out there when it comes to purchasing foreclosed property- HUD has a program that only requires $100 downpayment!  There are special First Time Home Buyer Programs too!

In addition to that – Did you know that rental history is not adding anything to your credit score??? Home-ownership does?

In general, your landlord does not report to the credit bureau unless you’ve screwed something up!  A mortgage company, reports an on time, monthly installment debt.  This can be a HUGE lift to your credit score!  8o))Just one more reason to call us about purchasing a home in NC!  Steve and Eleanor Thorne, Mortgage Banker  at 919-649-5058.

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Closing Docs 3 Days Before Closing REQUIREMENT H.R. 4229

November 19, 2010 by Leave a Comment

The Borrowers’ Right to Inspect Closing Documents Act of 2009 H.R. 4229 is currently in the House Finance Committee for Review.Home Buyers Have Expectations

But it brings a HUGE question to mind:

“Are we ready to make mortgage lending so precise that we can meet 8 different disclosure dates within each transaction?”

THREE DAYS BEFORE CLOSING???  Mandatory?  Seriously?!?!

Maybe this is another job creation effort by Congress?  Most mortgage companies are so lean, that in order to meet Realtor expectations of closing in 20/30 days (or less), almost ALL mortgage companies would need to hire an extra person for every 10 transactions (IMHO)… or maybe we just need to get REALLY efficient?

I’m trying to figure out where those 3 days are going to come from!  I just made a list of places that might be spots in our office where we might be able to squeeze a few hours -but for the most part underwriting is what sucks up time.  And if you think about the fact that an underwriter can only really look at a new loan every 45 minutes to an hour – you can see why it takes a while to get through there…

I don’t know how we will all change systems to adjust to this latest twist (if it passes) – but I can tell you this much about Mortgage Lending in 2009 and 2010…

Mortgage Lenders deserve an AWARD for being the most flexible industry on the PLANET!

If you are considering a mortgage loan for a home in Cary, call Steve Thorne, Mortgage Broker Raleigh 919-649-5058

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Raleigh One of the Smartest Cities in America!

October 4, 2010 by Leave a Comment

We keep getting good news about Raleigh / Cary! In the past month we’ve been named as the first place to most likely see appreciation in Real Estate, one of the best places to Retire, One of the best areas for Single Rich folks and now… one of the BRAINIEST Cities in America!

According to new Census Bureau data, the national average for cities with people 25 years or older who have bachelor’s, master’s, professional school or doctorate degrees is less than 25%… In Raleigh, that concentration is at 42.4% putting us at number 4 on the list!

“There’s a very high correlation between earnings and educational attainment,” said Todd Gabe, an economics professor at the University of Maine.

Cary currently trends at number 13 on the fastest area in the country for Job Growth!

According to CNN Money, Wake  County is one of the nation’s leader in a high-tech and biotech jobs.

Wake County is home to Research Triangle Park, the country’s largest industrial park, where IBM has extensive operations, employing 11,000, along with GlaxoSmithKline, Cisco Systems, and SAS Institute.

Even though there are more than 160 companies in RTP, the lion’s share of Wake County’s jobs come from the public sector. The lion’s share of local jobs are with the state government or the public school system. North Carolina State University and the county are also major players.

If you are considering a home purchase in Raleigh or Cary NC – call Steve and Eleanor Thorne, 919-649-5058.  Professional Mortgage Planners with over 20 years experience. We have the best FHA, VA and Conventional mortgage rates and the lowest fees available!

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2% Mortgage Rate on Refinance?

March 4, 2009 by Leave a Comment

The Obama Administration outlined today their efforts to help borrowers who need to refinance – and for various reasons can not.

If you’ve made your payments on time, here’s the current plan being floated… REMEMBER! This must be approved by Congress!

A Home Affordable Refinance Program to Provide Access to Low-Cost Refinancing for Responsible Homeowners Suffering From Falling Home Prices:

“Provide the Opportunity for Up to 4 to 5 Million Responsible Homeowners to Refinance: Mortgage rates are currently at historically low levels, providing homeowners with the opportunity to reduce their monthly payments by refinancing. But under current rules, most families who owe more than 80% of the value of their homes have a difficult time securing refinancing. (For example, if a borrower’s home was worth $200,000, he or she would have limited refinancing options if he or she owed more than $160,000.) Yet millions of responsible homeowners who put money down and made their mortgage payments on time have – through no fault of their own – seen the value of their homes drop low enough to make them unable to take advantage of these lower rates. As a result, the Obama Administration’s program will provide the opportunity for up to 4 to 5 million responsible homeowners who took out loans owned or guaranteed by Freddie Mac and Fannie Mae (the GSEs) to refinance through the two institutions over time. Reducing Monthly Payments: For many families, a low-cost refinancing could reduce mortgage payments by thousands of dollars per year. For example, consider a family that took a 30-year fixed rate mortgage of $207,000 with an interest rate of 6.50% on a house worth $260,000 at the time. Today, that family has $200,000 remaining on their mortgage, but the value of that home has fallen 15% to $221,000 – making them ineligible for today’s low interest rates that generally require the borrower to have 20% home equity. Under this refinancing plan, that family could refinance to a rate near 5.16% – reducing their annual payments by over $2,300. “Okay – here are some details!  The 5.16% rate mentioned above is the APR (they left that out).  There are also COSTS involved in refinancing which means that if your current rate is 6.5%, and the Obama Administration helps push mortgage rates to the mid to low 4% range – this might make sense.

The other BIG thing to notice is that they are talking about people who’s mortgage is currently owned by Fannie Mae and Freddie Mac. There’s a REALLY good chance your mortgage is owned by Wells Fargo, or BB&T or JP Chase Morgan and they don’t have to fall under these guidelines!
But it still doesn’t get us to that 2% mortgage rate on a refinance! THAT rate is only mentioned for folks who are about to lose their house… and that’s a TON more complicated!
For those details, click here.
If you want to find out more about qualifying to refinance in NC, please contact Steve and Eleanor Thorne, Connect With Us on Facebook, 919-649-5058.


Filed Under: FHA Mortgage Loans, Housing News Tagged With: , , , , , , , , ,

Sample Ceast and Disist Letter to Stop Collectors from Calling

February 26, 2009 by 1 Comment

Collectors call you because it’s to their advantage.  They can be threatening, they can get you all emotional… remember, the collection is a BUSINESS transaction.  You need to get the transaction back to a business level.Stop The Phone Calls!

The best way to do that is by sending them a Ceast and Disist Letter, telling them that all future correspondance will be in writing.  You must send this letter by certified mail, receipt requested.  Keep everything in your folder, including the receipt you get back!

Here’s a sample letter:
Date

Your Name
Address
City, State Zip

Debt Collector’s Name
Address
City, State Zip

Re: Account Number

Dear Debt Collector:

Pursuant to my rights under federal debt collection laws, I am requesting that you cease and desist communication with me, as well as my family and friends, in relation to this and all other alleged debts you claim I owe.

You are hereby notified that if you do not comply with this request, I will immediately file a complaint with the Federal Trade Commission and the [your state here] Attorney General’s office. Civil and criminal claims will be pursued.

Sincerely,

Your Name

Remember to Customize the cease and desist letter with your information including the current date, your name, address, and account number given by the debt collector.

Stop the Phone Calls!By LAW, once the collection agency receives your cease and desist letter they can communicate with you once more, via mail, letting you know one of three things: that further efforts to collect the debt are terminated, that certain actions may be taken by the debt collector, or that the debt collector is definitely going to take certain actions.  MEANING… they could say,” we are not going to try and collect this debt (don’t hold your breath on this one! LOL!), we MIGHT file a collection against you,” or they can say they, “WILL be filing a collection or judgement against you” – but they can’t call.

REMEMBER!!!  When you send the cease and desist letter to the debt collector, send it via certified mail with return receipt requested. This will provide proof that the letter was sent and received. If the debt collector communicates with you beyond the single instance allowed by law, this evidence will allow you to seek punitive action against the debt collector… meaning you can take THEM to court!

If you are trying to purchase a home - credit score requirements have gone up… you need to work on your credit, and not ignore it… but that doesn’t mean that you have to go through all the TRAUMA of the collection calls to get this done!

If we can help you – we will! 

Call Steve and Eleanor Thorne, Mortgage Banker in Cary ,

919-649-5058

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FHA Maximum Loan Limits Increase for Some NC Counties

February 26, 2009 by Leave a Comment

If you live in NC, there’s a good chance the Maximum FHA Mortgage Loan Limit for your county changed this week!  We were surprised that limits were increased in 2008, lowered January 1, 2009 and then INCREASED again February 24, 2009.

Who know how long this will last?

If you want to know what the maximum FHA Mortgage loan limit is for YOUR county – click here!

Need to find out if you qualify for a FHA mortgage loan in NC? Call Steve Thorne, Connect With Us on Facebook 919-649-5058

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