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Phoenix Real Estate Market Recap–Mortgage Rates Drop To Lowest On Record

Joe Martin — Tue, 10 Aug 2010 05:05:37 +0000

Mortgage rates dropped to the lowest level on record for the fifth time in six weeks, making home-buying and refinancing the most attractive in decades for those who can get loans.

Freddie Mac says the average rate for 30-year fixed loans this week was 4.54 percent, down from 4.56 last week. That’s the lowest since Freddie Mac began tracking rates in 1971. The last time home loan rates were lower was during the 1950s, when most mortgages lasted just 20 or 25 years.

The rate on the 15-year fixed loan dropped to 4 percent, down from 4.03 percent last week and the lowest on record.

$0 Down Payment Required–Queen Creek and San Tan Valley Foreclosure Homes Qualify!

Joe Martin — Wed, 04 Aug 2010 01:35:06 +0000

San Tan Valley and Queen Creek homes are eligible for the USDA Single Family Home Loan Program.

San Tan Valley and Queen Creek are great areas for First Time Home Buyers for several reasons, mainly because buyers can easily buy a home for under 85K and the homes are new and primarily in great condition. Add that with the USDA $0 down loan program (compared to the 3.5% required as a minimum down payment for FHA loans) and you have a win-win for any First Time Home Buyer.

There are income and property eligibility requirements that have to be met in order to qualify to buy a home with this loan program and YES foreclosure homes do qualify!

Income Eligibility: Applicants for loans may have an income of up to 115% of the median income for the area and families must be be able to afford the mortgage payments, including taxes and insurance.

Property Eligibility: The home to be purchased must be located in an eligible rural area as defined by USDA.

For additional foreclosure homes that qualify for $0 down payment USDA Loan Program follow these links:

San Tan Valley foreclosures or Queen Creek foreclosures

If you want to find out if you qualify just fill out the form below and we will contact you right away.

cforms contact form by delicious:days

Debt Relief – What Should You Do If You’re A Victim Of Fraud

Robby Thomas — Sun, 18 Jul 2010 10:11:43 +0000

If you’re a victim of fraud or misrepresentation, you won’t be responsible for the debt. However, it’s important to know what your options are once it occurs. General consumer protection laws (UDAP) may let you cancel the contract, stop paying, or request a refund. If you never paid money towards the debt or are being sued by a creditor or collection agency, you can use the UDAP laws as your defense.

Another option would be to consult with an attorney about suing the seller. But before you initiate legal proceedings, send the seller a demand letter explaining the problem and ask for your money back. Make copies of all original letters and be sure not to forward originals of any supporting documentation like the contract, receipts, or canceled checks. If you don’t receive a response from the seller or get what you want, your letter along with the supporting paperwork should be used as evidence in your lawsuit. If the amount is low, you may be able to do it yourself in small claims court. For larger amounts, you’ll probably wants the assistance of an attorney. Check with your state’s laws for specific requirements.

If you don’t get results with your initial letter, you can also file a complaint with the appropriate government agency. Check with your local or state prosecutor’s office for a referral to the appropriate agency. Most businesses devote more attention and care to complaints generated from a higher governing authority. The employee assigned to handle your complaint will most likely have the power to negotiate a resolution or refund.

Regardless if you decide to follow through with litigation, it’s always a good idea to report the issue to the appropriate government agency. As more complaints filter in overtime, the government agency will most likely take action against the business. This would save other future consumers from being ripped off.

The best method to get a government agency to take action is by completing the agency’s standard complaint form. If you only submitted a copy of the demand letter you mailed to the merchant, the agency will not take action without allowing the merchant an opportunity to correct the problem. When you submit a formal complaint with an agency, they’ll issue a formal investigation requesting the business respond to the allegations.

Make sure you include copies of originals of all receipts, agreements, warranties, service contracts, ads, and other supporting evidence. If you have a log of your phone calls showing your efforts to work out the problem, be sure to include these. Be sure to make copies of all paperwork submitted to the agency. You should also send the business a copy of your agency complaint.

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ATTN: FHA Phoenix Home Buyers–House Passes FHA Reform Bill

Joe Martin — Fri, 09 Jul 2010 02:38:06 +0000

Phoenix Arizona Area Homes

The Federal Housing Administration (FHA) reform legislation that was just passed allows FHA to raise monthly premiums on mortgage insurance so less up-front premiums will be due at the closing table.

This legislation helps qualified buyers that have less cash on hand purchase and take advantage of the current low rates with less out of pocket expenses.

This can be viewed as excellent news for Phoenix first time home buyers who can now apply the extra cash for some finishing touches, landscaping or fresh appliances on their new home after closing.

It’s important to note that after the House passed this bill, they went on to defeat an amendment that would raise the required down payment minimum from 3.5% to 5% of the sales price helping again to make ownership that much more affordable for qualified buyers.

[FHA down payment requirements were raised effective January 1, 2009 from 3% to 3.5% of the sales price or appraised value, whichever is less, of the home being purchased.]

Many are considering this as great news to prospective Phoenix home buyers. With rates and prices being low synonymously for the first time in years, coupled with the ability to choose from a plethora of foreclosure properties, it is the perfect time for buyers to find out if they qualify to purchase a home. Especially because of the extra money now available and particularly if they are renting!

Are closing costs good or bad?

Joe Martin — Fri, 03 Apr 2009 20:15:25 +0000

Are closing costs good or bad?

It depends.

Due to some very slick marketing by the mortgage industry, many people know that “closing costs are bad” and that they don’t want to pay them. They aren’t exactly who is going to pay them, but they know that they don’t want to.

Here is an ad that I came across from Countrywide.

Does this add say “no closing costs”?

No.

It says “No Cash Required For Closing Costs.” – or in other words – there are closing costs and you are going to pay them, but they can be rolled in to your loan.

Hence the term “no out of pocket closing costs”.

The interchangeability of the two terms can be confusing, I realize this. But I just thought I would go on record as saying:

You can pay your closing costs or the seller can pay your closing costs. If you want the lender to pay your closing costs, be ready for a higher than market rate – because in exchange for paying your closing costs, the lender will require a higher interest rate.

Oh, and I rarely if ever see people bringing money for closing costs on a refinance – they are almost always rolled into the loan.

Is it better to pay your closing costs and have the rolled into your loan or is it better to get the bank to pay your closing costs for you in exchange for a higher interest rate?

It depends.

Make sure that when you speak with a loan officer about your situation, you ask them that question.

Justin McHood is a nationally published mortgage expert who lives and works right here in Arizona. You will normally find him wearing a blue starched shirt (he says that it goes well with is orange hair) and you can learn more about him at ArizonaMortgageTeam.com