It’s Hard to Imagine

With mortgage rates below 5% since 2009, you’d think any homeowner who should refinance would have already. However, it is estimated, there are approximately 6.5 million borrowers who would benefit with significant monthly savings by refinancing. iStock_000064771413_300.jpg

Rodney Anderson of Supreme Lending, on his weekly radio program, described a recent pipeline meeting where they reviewed every pending mortgage application his company was processing. They had seven refinancing applicants whose current mortgage was over 9% and twelve with a rate between 7% and 9%.

“Some 550,000 American homeowners with a mortgage could save $500 or more each month by refinancing at today’s rates. Over three million could save at least $200 per month.” said Ben Graboske, CTO with Black Knight Financial Services.

Getting a lower interest rate should be reason enough but eliminating the mortgage insurance should make the decision a no brainer. With increased home values, the loan-to-value ratio may no longer require mortgage insurance which would add additional savings.

Homeowners need solid information about what their home is worth and whether they’d benefit from refinancing. The most reliable solution is to talk with a qualified mortgage professional. The internet is a great place for generalized info but each person’s situation is unique. Call if you’d like a recommendation of a trusted mortgage professional or would like to know what your home is worth.

Converting Leads Two Minute Tip 38 Part 1 of 2

Whether you are a new agent building your business or an established agent keeping your database fresh, maintaining a flow of potential customers is crucial to your success.

Attracting leads is key, but if you don’t have effective systems for converting them into closings, you’re leaving money on the table.
So let’s take a minute (or TWO….) to look at two of the four steps to successful Lead Conversion. We will complete the four in Tip 39.

It’s Hard to Imagine

Screen Shot 2015-07-28 at 3.45.22 PMWith mortgage rates below 5% since 2009, you’d think any homeowner who should refinance would have already. However, it is estimated, there are approximately 6.5 million borrowers who would benefit with significant monthly savings by refinancing.

Rodney Anderson of Supreme Lending, on his weekly radio program, described a recent pipeline meeting where they reviewed every pending mortgage application his company was processing. They had seven refinancing applicants whose current mortgage was over 9% and twelve with a rate between 7% and 9%.

“Some 550,000 American homeowners with a mortgage could save $500 or more each month by refinancing at today’s rates. Over three million could save at least $200 per month.” said Ben Graboske, CTO with Black Knight Financial Services.

Getting a lower interest rate should be reason enough but eliminating the mortgage insurance should make the decision a no brainer. With increased home values, the loan-to-value ratio may no longer require mortgage insurance which would add additional savings.

Homeowners need solid information about what their home is worth and whether they’d benefit from refinancing. The most reliable solution is to talk with a qualified mortgage professional. The internet is a great place for generalized info but each person’s situation is unique. Call if you’d like a recommendation of a trusted mortgage professional or would like to know what your home is worth.

Grilling Safety

More people grill in July than any other month. While grilling is all about good food, fun, friends and celebrations, it is important to make sure that accidents don’t interrupt your activities. Approximately half of the injuries involving grills are thermal burns. If you work with fire, there’s a chance of getting burned.

  • Only use BBQ grills outdoors and in ventilated areas.
  • Place the grill away from home or anything that could be flammable. iStock_000065187147-250.jpg
  • Keep grill stable.
  • Keep fire under control.
  • Keep children away from grill.
  • Never leave the grill unattended.
  • The grill lid should always be open before lighting it.
  • Grease should not be allowed to build up in the grill.
  • Use long-handled utensils.Gas/Propane
  • Check the tank hose and connections for leaks before using it for the first time each year by using a light soapy water solution to see if bubbles appear.
  • If you smell gas when the grill is lit, move away from the grill and call the fire department.
  • If the flame goes out, turn off the gas for 15 minutes and open the lid before re-lighting it.Charcoal
  • Never add any starter fluid or other flammable liquid to a fire.
  • Only use charcoal starter fluid and not gasoline, kerosene or other flammable liquid.
  • Keep starter fluid away from heat sources and out of reach of children.
  • Electric charcoal starters do not use fire but have a coil to ignite the coals.
  • When finished cooking, close off the grill vents to suffocate the fire and save some of the remaining charcoal.

Practice safe grilling and enjoy the occasions to cook outdoors and share with your family and friends.

Intermission, Goals and Dancing Hot Dogs

CAUTION! The video below may produce nostalgic memories, hunger or nightmares. Watch only after extreme forethought. Discretion is advised.

Happy July 1st. Half of the year is gone. It’s intermission. Anyone old enough to remember drive-in movies will fondly (or scarily) recall juggling popcorn bags, tightrope walking ice cream bars and of course, dancing hot dogs being the highlight of that halfway point at the movie.

So tell me (or someone else or just yourself), it’s intermission, how’s it going? Are you on schedule to have the kind of year you planned? Business working? Family? Recreational activities? Other things?

I don’t believe in New Years resolutions. To me, any day is a good day to set goals and strive to get better. I do know, however, that many goals are set in conjunction with the calendar year. So, since we’re at the halfway point, I’ll ask again, how is it going?

Today, I am on target for some of my goals (weight loss almost exactly at half of the goal), really close enough to call it “on target” for some others (mileage for the year and number of classes booked for 2015), and there are some that simply are not happening as I planned. As a result, I am optimistic about a few, hopeful on some others and ready to either alter a few OR find some new approaches that will help me achieve those pesky ones. Some have already been adjusted.

For me, and hopefully you as well, this is no surprise. I monitor my goals constantly. Like the blue dot steadily moving along the purple line of my iphone Google map, it helps me to be able to see where I am along the purple line that is my goals and the direction of my life. If I don’t know, well…… I don’t know. So, I want to keep track.

When the Cheshire Cat told Alice that it doesn’t matter which way you go if you don’t know where you’re going, he was unknowingly referring to goal setting and achieving. What he didn’t tell her was that if you not only don’t know (or care) where you are going AND have no idea where you are, you are in double trouble (ORRRRRR maybe completely happy not worrying about such things, but I digress…).

So what am I saying?

If unlike Alice, you have a goal, a destination, now is a good time to evaluate how your journey is progressing (as is every other day but halfway is kind of a landmark). If you’re on track – great. If not, it’s perfectly okay to alter the plan or even the goal. Yes, even the goal. They are yours, by the way, no one said they weren’t adjustable.

Intermission over. Back at it (if I could only erase the image of those hot dogs….).

Eliminate Mortgage Insurance

Why would you consider refinancing if your mortgage is only two or three years old and the rate is not considerably higher than what is currently available on new loans? Because you may be able to eliminate the mortgage insurance and have significant monthly savings. chopped.jpg

Many homes have seen their values rise in the past few years. The current loan-to-value ratio may be low enough to no longer require mortgage insurance. In some cases, a homeowner might actually pay a little higher rate than they currently have but lower their monthly payment dramatically because the mortgage insurance isn’t required.

A rough rule of thumb is that mortgage insurance is not needed on loans at or less than 80% of value. There could be programs available that would allow a higher LTV than 80%.

Careful consideration should also be given to the fees required to refinance. Lenders differ in not only the rates they charge but also the fees associated with the loans and the process. If you’d like a recommendation of a trusted mortgage professional, we’d be happy to make a recommendation.

Where Are the Sellers?

Low inventories resulting in multiple offers are contributing to what experienced agents are calling the most challenging market they’ve ever worked. While buyers with resources may find the market difficult, purchasers with minimum cash and credit are struggling to find and get into a home. where are sellers.jpg

First-time buyers feel the impetus to purchase because they’re renting and are concerned about being priced out of the market with rapidly appreciating prices and rising interest rates.

Sellers may not feel the same urgency because they already own a home. While they might find it appealing to change homes, they may not feel a pressing motivation causing them to act.

In some cases, sellers are so attached to their low interest rate mortgage that instead of selling, they’re keeping the home for a rental property. This may be a good investment for people with additional cash resources for the down payment and closing costs on the replacement property.

Why now is a good time to sell:

  1. The economy is strong.
  2. The majority of home sales occur in the months of May through September.
  3. Many buyers find it preferable to move in the summer because their children are out of school and they can avoid the winter weather.
  4. Mortgage rates are still very low but are starting to rise.
  5. Current low inventories in most markets result in higher prices and less competition.

Contact your real estate professional to evaluate the opportunities of making a move.

Where Have All the Sellers Gone?

unnamedLow inventories resulting in multiple offers are contributing to what experienced agents are calling the most challenging market they’ve ever worked. While buyers with resources may find the market difficult, purchasers with minimum cash and credit are struggling to find and get into a home.

First-time buyers feel the impetus to purchase because they’re renting and are concerned about being priced out of the market with rapidly appreciating prices and rising interest rates.

Sellers may not feel the same urgency because they already own a home. While they might find it appealing to change homes, they may not feel a pressing motivation causing them to act.

In some cases, sellers are so attached to their low interest rate mortgage that instead of selling, they’re keeping the home for a rental property. This may be a good investment for people with additional cash resources for the down payment and closing costs on the replacement property.

Why now is a good time to sell:

  1. The economy is strong.
  2. The majority of home sales occur in the months of May through September.
  3. Many buyers find it preferable to move in the summer because their children are out of school and they can avoid the winter weather.
  4. Mortgage rates are still very low but are starting to rise.
  5. Current low inventories in most markets result in higher prices and less competition.

Contact your real estate professional to evaluate the opportunities of making a move.

 

 

Make Your Offer Standout

If a seller was looking at two offers for exactly the same price on their home, there would still be things that could make one standout more than the other. If there happens to be more than two offers, things can really get sticky for a buyer. For that reason, it is good to craft the most attractive offer possible because even if you don’t have competition now, another offer could come in during negotiations and derail all your efforts to that point. InTouchbyPatZaby-unique.jpg

Anything that can give the seller the peace of mind that one contract will close on time and as agreed will make them more comfortable in accepting one offer over another. Buyers can consider putting up larger than customary amounts of earnest money and limiting the contingencies to only the most essential items.

The closing costs could be more expensive to the seller based on the type of mortgage a buyer is obtaining. One buyer may be asking the seller to pay part or all of their acquisition costs and the other buyer is paying their own costs.

The borrower who has a signed, preapproval letter will appear to have a greater certainty to closing than a buyer who only says they have talked to a loan officer. Some lenders’ letters are considered “gold” and others may not be worth the paper they’re written on. The seller will depend on their listing agent to advise them.

In most cases, the seller will be taking all or part of the cash they receive from the sale of their home and buying another one. If they have to put a contingency clause in the contract based on their current home selling, it weakens their position. Conversely, it will strengthen a buyer’s position if they don’t have to make their offer contingent upon selling their current home.

Even shortening the inspection periods and offering to close early or possible lease the home back to the seller for a short time can be valuable negotiating factors.

Finally, don’t overlook the value of a personal hand-written letter that tells the seller why you want their home. An emotional connection has been known to make a difference for one set of buyers getting the home.

You’ve Got Money!

Imagine that after checking www.SSA.gov to see what you can expect when you retire and estimated what your minimum required distributions from your retirement accounts will be, you’ve discovered that you’re not going to have enough retirement income to cover your living expenses. Youve got money.jpg

Ideally, it would be perfect if the extra money you need would just come to your mailbox each month with the same certainty as your social security or retirement income.

Rental homes are a popular choice for passive income because they are an investment that most people understand based on their experience owning a home. They’re easy to manage and the rents should keep pace with inflation.

Mortgage loans for investors are available to investors with good credit and at least 20% down payments. While 30 year terms are the most common, some investors wanting to have the home paid for by retirement may choose a 15 or 20 year term.

A tried and true strategy is to choose average or slightly below average priced homes in predominantly owner-occupied neighborhoods. This will appeal to more prospective tenants wanting to live in good communities and should provide a higher level of revenue.

When an owner has a good property with a good tenant, the income is as predictable and convenient as going to the mailbox each month. To learn more about rental homes, contact your real estate professional.