There are so many changes in the mortgage industry these days it is nearly impossible to keep up.  All a Realtor® can do is depend on a great lender to answer any new questions.

Here’s what you need to know if the foreclosure crisis is hitting you or your family close to home.

If you suffer from a forclosure or short sale on your credit report:

• Those who have been a victim of forclosure, you will not be eligible for a Fannie Mae loan for 5 years.
• Those who have suffered from short sales, you will not be eligibly for a Fannie Mae loan for 1 year.

So if financial troubles are hitting you this close to home, you may need to think of forclosure or a short sale as less of a way out than you coule before.  If you’re in trouble, contact your mortgage company and a Realtor® because you will need some professional advice.

Tags: Forclosure, economy, mortgage by Aria
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Frugal tips for the busy person

Does your checking account pay you interest?  If not, take a lunch break and open a free interest-bearing checking account.  Nearly every bank is offering one.

Use banking software like Quicken or Microsoft Money to keep track of your expenses and scheduled payments (explained soon!) and have it installed on a safe computer that is convenient to you.  Be sure to keep up with it.

Don’t pay your mortgage late, but look at the dates.  Often mortgages are “due on the first” and “late on the 15th”.  Check and see what your mortgage company’s policy is.  It is often printed on your statement.  They usually don’t report late payments until they are 30+ days late.  Using this example, that means that they’d prefer you paid it by the first, but you have until the 15th to pay without any penalty.  This is a feature because mortgage companies know that life is full of circumstances beyond your control, so be careful with this tip.  Instead of paying by the first, schedule your payment online with a date that is more comfortable for you, say the 10th but make sure your money is in the bank by the 1st.  Now, from the 1st through the 10th, you will earn interest in your mortgage payment.  If you don’t, the mortgage company will!  In Quicken or other banking software, enter the payment with the paid date as the scheduled date.

Don’t stop there, schedule all of your payments.  Say your credit card payment is due on the 14th.  Instead of sending a payment now, schedule it online to pay on the 14th or earlier.  You will be getting the interest on your own money and won’t have to worry about remembering these deadlines

Once you get the hang of this system, it’s pretty handy.  Just be careful as you’re learning it.  You may be able to schedule all of your bills on just one day a week and not have to worry about it for the rest of the week!  I love using technology to make my life easier and to free up time for things that I enjoy like my friends & family, my pets, my clients, and of course blogging!

Tags: money, mortgage by Aria
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Renters have a different view of real estate economy than homeowners.

Source: PEW Research Center

It seems that renters are much more pessimistic about rising home prices. I’m not sure of the participants in this study were planning on buying a home in the near future, but this study does show something interesting about how you see the market when you own property versus when your at the mercy of a landlord.

More renters believe home prices are rising.

Are they pessimistic about their buying power? They may be feeling left out of the prosperity homeowners found during the boom years leading up to our current conditions.

Renters aren’t worried about the housing economy.

Renters expect prices to climb more than homeowners do. So why aren’t they buying? First-time home-buyers are seeing harder times with mortgage woes. It takes some patience and hard work to get a home loan, and perhaps renters aren’t willing to go through with it.

Americans are not optimistic about the economy.

Source: PEW Research Center

Yet this study is extremely interesting. We saw some of the greatest appreciations in Austin real estate in 2006. Many people sold out to collect their equity while late-comers created a building and flipping surge, especially in central Austin real estate. 2007 was much slower than 2006, especially in the last two quarters. Yet, the number of those who believe the economy is in poor shape has not increased as dramatically as I would expect. I think this shows how pessimistic people are about the economy anyway. We live in a fairly prosperous country and Austin has a steady growth rate which leads to steady real estate prices, yet I would expect similar numbers on a local study based on the fears and questions I receive.

Is this thing on?

I still wonder if anyone can actually hear me. Don’t be afraid to buy. We are currently in a RARE buyer’s market here in the Austin real estate market and at the same time, interest rates are at HISTORIC lows. I’m shopping for real estate in Austin now so don’t blame me if you don’t get in on this buyer’s market! Get your head out of that national news paper, turn off CNN, and get real. We’ve seen studies showing that people think the bottom is falling out of the American economy for years and it hasn’t. In fact, the primary reason for the housing slowdown and the buyer’s market here in Austin is the attitudes of people, not actual economic fact. Now that sellers are getting real, take a chance and think about investing in Austin’s real estate market. I’ll show you how!

Tags: austin real estate, buyers, development, economy, finance, hot market, housing, market, market statistics, money, mortgage, real estate, statistics by Aria
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It’s quick and easy to find out! Visit Real Estate Financing or use this calculator!

Tags: austin real estate, finance, hot market, housing, info, loans, market, money, mortgage by Aria
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Some months it’s hard to even make the basic mortgage payment, but smart homeowners are learning that paying even just a bit of extra principal each month can lead to big rewards.

In a recent Scott Burns Commentary, a reader wrote in for advice on a loan he had already been paying down for three years, saving 17 years of interest payments. Yes, it actually works! Check out The Motley Fool for calculators that can help you with your plans.

Don’t give up! This is the advice Mr. Burns gives his reader. Continue paying down that mortgage, and you will have more money for paying off other debts and your retirement later.

Your monthly payment isn’t set in stone. Even paying an additional $100 per month can greatly reduce the interest you spend and how long you have to make those monthly payments.

Good luck!

Tags: finance, money, mortgage, planning, princical, real estate, retirement by Aria
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