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If You Really Love the House…

Don’t Lose the Bid.

In the housing market, the best deal doesn’t always come with the lowest price.

Price vs. Payments – If you’re financing your purchase, you’ll probably never come close to paying the actual price. You’re making a comparatively small down payment and then paying interest on the loan until you refinance or sell. Yes, you will have a higher payment if you pay more for the home, but an extra $10,000 of mortgage money can add less than $50 per month on a low-rate, 30-year loan.

Relative Prices – Our natural tendency to pay as little as possible is not as meaningful for an investment, such as a home, as it is for a consumable. In this case, what you pay now can affect your sales price later. There may be little difference in total earnings if you pay less and sell for less or pay more and sell for more.

Influencing Value – For appraisers, the last sale or “comp” in an area sets the value for similar homes. Whatever you pay helps to establish what your home and comparable properties are considered to be worth.

Setting the Trend – If you pay less for your home than was paid for the last similar home, you may be contributing to a downward price trend, which can be difficult to reverse. Conversely, helping to maintain a trend of price appreciation can end up paying you back many times over.

One Chance – No two homes are ever exactly the same. Even when structure matches, your land, your view, your address and your immediate neighbors will always be different. You truly may have only one chance at just the right house. Industry professionals have all seen buyers lose out on what they really wanted. We don’t want that to happen to you. Nor do we want you to pay more tomorrow for something less than what you could have had today as a result of increasing prices and rates.

Reach out, and we’ll be happy to help you weigh your options for the home you would really love to own today.

Sincerely,
Hope Hall
Hall Lending Group
Mortgage Loan Officer
NMLS 3938
(319) 899-3820
hope.hall@gmail.com
1930 St Andrews Ct NE
 

Prices Have Risen

 prices_have_risen_email  Remember not too long ago when all you heard or read in the news was how home values were going to keep falling? Well, it didn’t happen. In fact, not only did values stop dropping, but in almost all areas of the country, prices have risen well off the lows. In a few metros, they’ve even reached new highs.

We tend to take a far more factual and historical view of our market rather than the speculative and sensational perspectives you often see in the media. We often cite facts, such as the record affordability that came with falling rates and prices. That particular information led us to anticipate what we see today—price appreciation

Be aware that what you hear in the media is often not the best information for making decisions with consequences that last longer than the current news cycle. Homeownership generally falls into that category.

When long-term information is what you want, come see us. We’re happy to help.

Sincerely,
Hope Hall
Hall Lending Group
Mortgage Loan Officer
NMLS 3938
(319) 899-3820
hope.hall@gmail.com
1930 St Andrews Ct NE

prices_have_risen_email

 

Do NOT underestimate the power of tax deductions.

The most frequent tax question that I hear is “What exactly does it mean when I hear that my home is tax deductible?” I’ll explain using your primary residence as an example. Let’s say that your $2,000 monthly mortgage payment includes $1,300 in interest, $200 paying towards the principle,$300 in real estate taxes, and $200 in home owner insurance. In this example, the $1,300 in interest and the $300 in real estate taxes are both tax deductible.

The $1,600 spent on those two things is tax free. In other words, the first $1,600 of your paycheck is now tax free! Normally you would have $432 taken out of your $1,600 paycheck that now doesn’t need to be sent to the IRS. Instead, it’s free to go in your pocket. So that $2,000 house payment really costs you $1,568. That’s great news! Do NOT underestimate the power of tax deductions. We would love to help you with the process please. Give me a call if you would like to begin the process .  319-899-3820 . save money

Hope Hall  NMLS # 3938

Hall Lending Group nmls #3833

 

Credit Score Tips

A good credit score is important for more reasons than just obtaining new credit. These days, it can factor into everything from landing a new job to getting the best deal on your insurance policies. It’s more important than ever to avoid late payments on your mortgage!

A 100 point drop for one late mortgage payment? It’s true. A single 30-day-late mortgage payment can cause your score to drop by as much as a hundred points. Credit scoring algorithms vary based on many factors, and in some instances, the damage may be even greater and last for years.

The costs accumulate. At the time, a single missed payment will cost you only a late fee, but the expense really adds up on your next loan or missed opportunity. Low credit scores typically mean a higher rate and cost. Higher rates can mean hundreds of thousands of dollars of extra expense over the life of a loan.

Missed payments are usually unplanned. Usually, events beyond our control lead to late payments, such as an accident, illness, job loss or family issue. At other times, carelessness or a hectic life may result in a forgotten payment.

What can you do?
Plan for the unexpected. Maintain an emergency cash reserve account equal to at least 3 months of living expenses or more.
Automate. If you’re prone to forgetting or don’t have a scheduled time to sit down and pay bills, set up auto payments through your checking account or put a perpetual reminder on your calendar.

Little other than time will decrease the negative impact of a late payment, so prevention is the one sure remedy. If you don’t already have a good system in place to assure timely payments and are not sure what’s best, reach out anytime. We’ll be happy to help set up a plan that’s right for you.

Sincerely,
Hope Hall
Hall Lending Group
Mortgage Loan Officer
NMLS 3938
(319) 899-3820
hope.hall@gmail.com
1930 St Andrews Ct NE

 

Biggest Credit Myths, Mistakes, and Misconceptions

Good credit is well worth the effort it takes to both achieve and preserve it. If you have good credit, the following tips will help you keep it that way. If you are looking to improve your credit, however, now is the time to get started. Give us a call. We’ll review your credit and find out exactly where you stand. In the meantime, if you plan on entering into a loan transaction in the next 6 to 12 months, you simply cannot afford to make the following credit mistakes:

Don’t fall behind on existing accounts. This includes your mortgage and car payments. One 30-day late can cost you anywhere from 30-80 points or more depending on the other factors being reported on your credit reports.

Don’t pay off old collections or charge-offs during the loan process. Paying collections will decrease your credit score immediately due to the “date of last activity” becoming recent. If you want to pay off old accounts, do it through closing, and make sure that 1) you validate that the debt is yours, and 2) the creditor agrees to give you a letter of deletion.

Don’t close credit card accounts. If you close a credit card account, it will appear to FICO that your debt ratio has gone up. Also, closing a card will affect other factors in the score such as length of credit history. If you have to close a credit card account, do it after closing, and make sure that it is an account you’ve opened more recently.  Remember, 10% of your credit score is made up of your Mix of Credit, so it is important that you have at least 1-2 major credit cards open and in good standing.

Don’t max out or overcharge your credit accounts. This is the fastest way to bring about an immediate drop of 50-100 points in your credit score. Try to keep your credit card balances below 30% of their available on your monthly statement, and especially during the loan process. If you decide to pay down balances, do it across the board. Meaning, make an extra payment on all of your cards at the same time.

Don’t consolidate your debt onto 1 or 2 credit cards. It seems like it would be the smart thing to do; however, when you consolidate all of your debt onto one card, it appears that you are maxed out on that card, and the system will penalize you as mentioned above. If you want to save money on credit card interest rates, wait until after closing.

Don’t do anything that will cause a red flag to be raised by the scoring system. This would include adding new accounts, co-signing on a loan, or changing your name or address with the bureaus. The less activity on your reports during the loan process, the better.

Don’t do it alone. If you feel that the credit challenges you’re facing are too much, or you don’t have enough time to do the work necessary to improve your own credit, don’t lose hope and give up. Give us a call. We can help. In many cases, small changes to your credit profile could yield big results that could save you thousands of dollars on your mortgage. However, if professional credit repair does become necessary, we’ll gladly provide you with a referral to an experienced professional credit repair specialist you can trust.

Stay tuned for more great credit tips!


NMLS # 3938

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