Mortgage companies and banks are working overtime these days processing new mortgages – which raises an interesting question: Will they ever run out of money to lend?
The chances of that happening are virtually nil, thanks to a highly complex investment market for mortgages that has grown immensely since the 1970s. The key players in this game are “Fannie Mae” (Federal National Mortgage Association), “Ginnie Mae” (Government National Mortgage Association), and “Freddie Mac” (Federal Home Loan Mortgage Corp.). These agencies, along with several private companies, turn homeowners’ mortgages into investment vehicles for individuals, pension funds, insurance companies and other large institutions. Altogether, these investment groups make up the bulk of what is known as the “secondary market.”
When a bank or mortgage company writes a mortgage, the loan is lumped with other mortgages in a bundle (or “pool”) that is often sold to one of the agencies. With the sale of the mortgage, the bank or mortgage company again has money to lend to another home buyer.
Fannie Mae, Ginnie Mae, and Freddie Mac differ as to the type of mortgage bundle they buy and in the type of investment vehicle they use to attract investors. But the process they use is the same: Assembling large packages of mortgages and issuing securities backed by the mortgages.
While the original lending bank may no longer hold the mortgage it gave to a home buyer, it still services the loan. That means collecting the monthly payments, keeping escrow accounts to pay for insurance and property taxes, and – through the agencies or companies that issued mortgage-backed securities – paying investors. Coldwell Banker Sea Coast Advantage is a full service real estate company with in house mortgage brokers from Alpha Mortgage. Contact us about all your Wilmington NC real estate needs. Visit www.cbbaker.com to search or catch us on mobile at mobile.cbbaker.com
Thinking of updating your kitchen? Re-doing your bath? Adding on to your home? Most likely, you’ll need to hire a home improvement contractor.
You can start your search for a contractor by talking to friends, family members or neighbors who have used a contractor recently. Ask if they would recommend the person or firm they used. To verify each contractor’s reputation, ask these questions:
• Did the contractor begin and end on time?
• Did the contractor try to minimize disruption of your family? How?
• How do you score the contractor on both technical expertise and finished appearance of the project?
• Did the contractor work neatly and clean up at the end of each workday?
Once you have a list of prospective contractors, do some research on your project by reading do-it-yourself magazines and manuals. You don’t need to know how to do the job yourself, you just need an idea of the work involved.
Now it’s time to ask at least three contractors to bid on your project. As you talk through the proposed improvement, ask what special or unexpected problems could arise and ask how the contractor would resolve them. If a contractor is vague or dismisses your question, scratch him off your list.
When adding rooms, rearranging the kitchen, moving walls or performing other major improvements, spend the extra money for a design professional. Be sure anyone who works on your house is licensed and insured.
Once you receive the bids, review them carefully. Don’t automatically go with the lowest bidder. You may get a better job or the contractor may use better materials when you pay a little more.
Write the contract to include exactly what the project will entail, how much it will cost, and at what points payments will be made; how changes in plans will be handled; the quality of materials to be used; the beginning and ending dates and sanctions for tardiness.
Keep on top of the project, checking progress and the quality of workmanship. If you are unhappy with something, talk to the contractor immediately. Make sure all changes from the original contract are made in writing and keep in mind that changes may affect the schedule and delay completion.
If possible, have your chosen contractor do a small job first, so you can learn first-hand the quality of work and what it’s like to have that person temporarily take over a part of your home.
We have concierge list of contractors in the Wilmington NC area that we would be glad to share with you. Just email me at kaybaker@ec.rr.com and we will get it right out to you.
Have fun with your project!
More Credit Score and Credit Report Transparency | Mortgage Match News.
According to Mortgage Match new rules will make it mandatory for Mortgage Lenders to give mortgage applicants credit scores and credit report factors used during the loan application process. If a Mortgage Lender quotes an applicant an interest rate and points that the loan will cost and there is a difference between interest rate and costs quoted to other applicants the loan officers will be required by Federal law as of July 21 to:
“–Tell you that you received a less favorable offer because of negative information in your credit bureau files;
–Provide you the actual credit scores used for your rate quote;
–Disclose the name and contact information of the credit reporting company that supplied the scores that led to your less favorable quote;
–Provide consumer education materials explaining credit scores, how they are used, and how your own score ranks against other applicants, plus the credit file factors that may have depressed your score. For example, if maxed-out credit cards and late payments are in your files, they could play significant roles in lowering your credit scores” per Mortgage Match.
The applicants will be able to have access to their credit report and the whole loan application process will become more transparent for the applicant. Consumer education materials will be available for the applicant, so they can see why they were turned down, or received a higher interest rate. They will have the right to obtain a free credit report if turned down for the loan.
Wrightsville Beach is a hidden gem that we treasure for it’s clear crystal clear waters, quaint atmosphere and wonderful people. With Banks Channel, ICWW and the Altlantic ocean at our fingertips what is there not to like. Great restaurants, a couple of shops and fishing piers provide entertainment for all. We are pleased to share with you our newest waterfront listing just in case you are interested in Wrightsville Beach.
www.WrightsvilleBeachWaterfront.com
Spectacular dream home on Banks Channel with over 4100 sq. ft. of gorgeous living area. 5 bedrooms and 4.5 baths in a well thought out open, floorplan with ELEVATOR. Incredible views await you from most every room including large decks from the owners suite and main living area. Vintage inspired kitchen w/bead board cabinets, Champaign and cream granite counters, kitchen island with built-in gas, downdraft cook top, and 2 raised breakfast bars. And a breakfast room with uninterrupted views of the channel and your private pier with floating dock and 2 boat lifts. One is a 13000 lb. lift for your fishing machine and the other a 3000 lb. lift for smaller pleasure craft. A recently new bulkhead was installed along the beautiful backyard with sod, knockout roses and other indigenous shrubs and bushes. The large owners suite has beautiful Brazilian Cherry floors and a fireplace that is shared with the spa like master bath offering unsurpassed views from the 2 man whirlpool and separate walk shower.
Over 4100 sq. ft. 5 BR, 4.5 bath dream home on Banks Channel with private pier, floating dock/gazebo and 2 boat lifts. Incredible Views. Prepare to stay awhile, because you have just found your new home.
Enjoy.
If you find that you are in need of help with your own home financial situation, or you would like to help someone out of their financial situation by purchasing a short sale, rely on us to help. Certified Distressed Property Expert can guide you through the selling and the buying process in a far more knowledgeable and timely process than doing it yourself. Contact us NOW, by signing in below and we will contact you immediately to start the process of selling your home as a short sale or looking for short sales to purchase. A free list of current short sales and foreclosures will be emailed to you. Please sign in here. http://www.cbbaker.com/shortsales.php
The proverbial question every buyer who is in the loan process has is “Is this the best time to lock in my rate”. The rates are creeping up but still under 5%. Well, Warren Buffett, one the wealthiest and most highly successful investors is “locking” in now. His Berkshire Hathaway Company just sold $1.5B in fixed debt, mostly in 10-year Notes, in order to refinance their adjustable rate loans. Mr. Buffett has not made comments on the move – but it is clear to us that he sees rates gradually moving higher over time as the US economy improves. Business Week states “The market scrutinizes Buffett’s moves very closely and this would indicate he’s thinking interest rates in the longer term may go up,” Vijay Chander, Hong Kong-based head of credit strategy at Standard Chartered Plc, said in a phone interview. That’s consistent with our house view that the U.S. economy is improving.”
“The world’s most successful investor locked in interest payments on most of the debt as a report showed U.S. manufacturing expanded in December at the fastest pace in seven months, spurring confidence the world’s biggest economy is gaining momentum. Former Federal Reserve Governor Frederic Mishkin said yesterday that while the central bank will complete its $600 billion bond-purchase program, a third round of so- called quantitative easing to spur growth is unlikely”
So, buyers it is a great time to buy a home and lock in with a great wait. It looks like the rates will probably be holding steady or increasing. Search 24/7 on www.cbbaker.com . Call and we can send you instant emails when something in your price range hits the market. Happy Buying.
Good news is a blessing to hear. The latest report in the New York Times states that even thought the recession is “officially over” the latest measures to spur the economy on has many forecasters and policy makers expressing optimism that the recovery will gain substantial momentum in 2011. The growth projections for next year have been raised by economists in universities and on Wall Street. Retail, factory orders and industrial orders have increased. The unemployment, while still high is on a downward trend. consumer confidence is getting stronger, large corporations are reporting healthy profits and the Dow Jones industrial average reached a two year high this week. May this upward trend continue well on into 2011. Merry Christmas and a very peaceful New Year to all.
Kay Baker & Associates
This time of year everyone is in a hurry trying to get all the shopping done, homes decorated and cards in the mail. Take a minute to slow down. Think of others and ask yourselves what you could do for someone else that might help them out at this time of year. There are many organizations that need help, especially during the holidays. The feeling you get when you help someone else is the best present you could ever receive. So, here are just a few of the organizations that would love to hear from you.
Get involved in Wilmington volunteering!
Everyone wants to get the lowest mortgage interest rate when shopping for a Wilmington NC home. The rates have been at high 3′s and low 4′s the last couple of months. Freddie Mac just announced this week after it’s Primary Mortgage Market Survey that the rates for fixed and adjustable have risen again for the third straight week. 30 year rates hover around 4.46% up last week from 4.40%. It is still a great time to purchase a home. The housing prices are at a low, coupled with rates under 5%, it is a win win situation. To search all Wilmington NC real estate, please visit www.cbbaker.com. We have lenders that can give you a current quote and do a pre-qualification to get you started.
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