Southern Oregon Housing Resources for Oregon Buyers

Southern Oregon Seniors, Did You Know You Could Use A Reverse Mortgage To PURCHASE A Home?

2009-08-07T09:01:00.000-07:00

A lot of information goes around about the Reverse Mortgage that is the tool many senior homeowner’s choose to use to help bridge the gap between their retirement benefits and their everyday expenses, but Southern Oregon Seniors, did you know you could use a Reverse Mortgage to PURCHASE a home? The general terms are the same as when you already own a home and take out a Reverse Mortgage, aka “Home Equity Conversion Mortgage” or “H.E.C.M.”.

Some general program details:

-You must be 62+ years old
-You never have to make monthly payments on the amount you borrow
-Credit history and income do not matter. The amount of money available to you is based on your home’s appraised value and/or the FHA loan limit (currently $625,500 nationwide) and your age
-Money may be disbursed to the homeowner in a lump sum, through monthly payments or accessed through a home equity line of credit.
-This is a non-recourse loan, meaning the homeowner(s) or heirs can never owe more than the home is worth
-You must reside in the home more than 50% of the year, which will be checked annually
-You must pay your property taxes and homeowner’s insurance, and maintain upkeep on the home.
-When the day comes you no longer live in the home, you or your heirs have time to make arrangements to refinance or sell the home and payoff the Reverse Mortgage

So, if you have sold a home and are purchasing another, you might want to consider using a Reverse Purchase Mortgage, which might work something like this:

Buyer is 65 years old, purchasing a home for $300,000 and is considering paying cash for it. You cover your down payment and closing costs, financing the rest with the Reverse Purchase Mortgage – A HUD FHA insured home loan that has no monthly payments – leaving almost $175,000, with which you may supplement retirement benefits, earn interest, save for a Rainy Day.

Sound like the solution you and your family have been looking for? Call or e-mail for more details.

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

Hear Ye! Hear Ye! Southern Oregon First Time Home Buyers! Need Down Payment Assistance?

2009-07-11T21:36:00.000-07:00

Hear Ye! Hear Ye! Southern Oregon First Time Home Buyers! Need Down Payment Assistance?

Are you a First Time Home Buyer in Southern Oregon who thinks you have to rent because you haven’t been able to save for a down payment? Think again! Down Payment assistance funds are once again available to eligible first time home buyers meeting the income criteria. As always, funding is limited, so don’t wait! Call or e-mail me for further details.

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – http://www.quality4loans.com/

Thinking of Buying A Foreclosure Home In Southern Oregon?

2009-06-23T12:18:00.000-07:00

Here in Southern Oregon, in the traditional peak buying season we’re seeing quite a bit of activity in the lower price ranges of the real estate market. Even Ashland, where prices are at the higher end of the scale for the Rogue Valley, sales are picking up. In Medford, White City, Central Point, Eagle Point the under $200,000 price ranges are seeing a flurry of activity, especially heavy in the lower price ranges where both first time home buyers looking to take advantage of the $8000 tax credit before it sunsets December 1, 2009 AND investors who are seeing price ranges that will cash flow and meet their investment goals are competing against each other. The inventory of available homes is shrinking consistently now, with the Mar-May 2009 number of homes on the market 27% less than the same period in 2008. Foreclosure sales are still representing a large percentage of these sales, and this market segment is likely to pick up a bit more when the State once again releases the funding for the Neighborhood Stabilization Program, probably sometime toward mid to end of July.

So, how does the “average buyer” buy a foreclosure home? Typically, you won’t find the average buyer on the courthouse steps trying to pick up a bargain through the Trustee’s Sale. This is where you will find the sophisticated, experienced investors who know the risks associated with purchasing foreclosed homes in this manner. The average buyer is working with their savvy, experienced Realtor, who has explained the many risks associated with these “as is” purchases where the bank who owns the property has no idea of how the property was treated by previous occupants. Their Realtor is advising their buyers how to limit risk and protect themselves through home inspections and other more specific types of inspections specific to a property, such as septic system and well/ water flow/quality inspections and certifications. And, their Realtor is watching for these properties to come on the market – knowing even before they are on the Multiple Listing Service that they are coming down the pipe, letting their buyers position themselves to pounce as they come on the market.

Sound intimidating? With the right professionals on your team, it doesn’t need to be. Southern Oregon Buyers are finding amazing deals this way. They are choosing their own Realtor to look out for their best interests vs. the bank’s representatives who are looking out for the banks. Here are some financing tools that may help you if you choose to buy a foreclosure/bank-owned home:

Home Path – Fannie Mae’s specific program for buyers purchasing a home that Fannie Mae owns. A “standard program”, or a “renovation program” for homes in need of some work. Fannie Mae works with local Realtors and Lenders on the sale of their homes so you may work with your chosen professionals. Here are the general highlights:

Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)You may qualify even if your credit is less than perfect
Available to both owner occupiers and investors
Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
No mortgage insurance
No appraisal fees
HomePath Renovation Mortgage Financing to fund both your purchase and light renovation

HUD Homes – These homes went back to HUD after an FHA loan was foreclosed upon. This foreclosure process is a slow one, so we haven’t seen many of these on the market in our area, but we do see a handful of them in our area. With only $100 down payment required, plus other buyer incentives, buyers may find they are paying as much as they are paying for rent, but own their own home.

Neighborhood Stabilization Program – This federal program that was devised as part of the stimulus packages approved in late 2008 has had a slow start getting to market so buyers may use it. Eligible Buyers purchasing foreclosed homes in the eligible areas that have seen a high concentration of foreclosures may get up to $50,000 to be used for matching down payment, closing costs, prepaid expenses, eligible repairs and mortgage reduction. A recent change in June has led to further investigations by the State of Oregon who administers the program. This process will hopefully be complete and the program re-released for eligible buyers purchasing foreclosure homes

USDA Guaranteed Rural Housing – This program is not specific to foreclosure properties as are those programs listed above, but it does have a unique feature that allows for a “holdback” of up to $10,000 for repairs to be made after close of escrow that may be financed. Buyers meeting the income/property eligibility requirements of this program end up with a great government loan with no down payment and no mortgage insurance required.

Some of these programs have income limits, some have population/area limits, so feel free to check with me to see what is available to you based on your individual circumstances.

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

Who Is Krista Bolf, Principal Broker at Coldwell Banker Prowest in Ashland?

2009-06-08T20:20:00.000-07:00

Although Krista Bolf, principal broker at Coldwell Banker ProWest in Ashland Oregon has an impressive list of credentials that go with her, it is the person behind the resume that impresses me the most.

Having had the pleasure of working on several transactions with Krista since we first met while working together on a Rogue Valley Habitat for Humanity and Ashland Community Land Trust project in 2006 and taught the HUD approved “ABC’s of Homebuying” at Rogue Community College, I’ve since seen Krista’s clients benefit from her sharp negotiating skills, solid knowledge base about the Rogue Valley properties and issues, and her extraordinary listening abilities. I do not hesitate to refer home buyers who are in need of good representation on their home purchase, be it their first home, move up home or an investment purchase, knowing they are in good hands. Together Krista and her business partner Rick Harris can – and have – handled these transactions smoothly and professionally every time.

Personally, Krista has consulted with me and my husband on multiple transactions, from our house to a rental home to general market information on commercial property decisions we have contemplated. Even when the information provided led to us holding off on listing our property due to market conditions, Krista has earned our respect and confidence with her professionalism, straightforwardness and follow through. And her dry wit can be very much appreciated in the circumstances we sometimes find ourselves working in with today’s real estate/mortgage industry.

Alright, alright…enjoy the list of Krista’s accomplishments. But, you’ll need to meet her in person to wholly appreciate the Krista Bolf I have come to know.

Licensed Realtor in Oregon since 1994

Licensed in California 1990 to 1994

REALTOR Membership Service

- Oregon Association of Realtors, 2009 President Elect

- Executive Committee 2006-2007

- Business Issues KOG Chair 2006

- Business Issues KOG 2004-2007

Rogue Valley Association of Realtors
- Realtor of the Year 2009
- Realtor Image Award 2006

- Oregon Association of Realtors Director 2007

- Affiliates Committee 2002-2003 Ashland Board of Realtors

- Secretary 1995 – 1997 REALTOR Designations Advanced Training

- ABR - Accredited Buyer Representative Specialized Buyer Agency training

- CRS - Certified Residential Specialist Less than 5% of Realtors nationwide achieve this specialized training

REALTOR Skills

- Trainer 1999 - 2006

- HUD approved “ABC’s of Homebuying” Instructor

Other Affiliations

- Ashland Community Land Trust President 2002,2003, 2005,2006

- Women's Council of Realtors

International Real Estate

- International Corporation de Inversiones

- Real estate sales and construction in Mexico

- AMPI-Association of Real Estate Professionals

- TRC–Transnational Referral Certified Agent

- Subscriber Member of WorldProperties.com

- http://www.buyhomesinmexico.net/

See you out there!
Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

Ready...Set...WAIT! No, DON'T Wait!

2009-06-01T14:34:00.001-07:00

Have you ever played "On your mark...Get Set....Wait!" with your kids? Or, "Red Light, Green Light"? I know my husband and I have done this, and are learning as time goes by that this isn't a bad lesson for our kids to get in the world we live in today. I'm thinking I wish someone had played "ready set wait!" with me a bit more when I was a kid, so I might be a bit more tolerant of the world I live in today - especially when it comes to the real estate/mortgage industry!

Ready...Set...WAIT!

Monetizing the $8,000 tax credit
HUD Secretary Donovan opened mouth and insert foot at the National Association of Realtors convention in Washington, D.C., announcing a wee bit early that the guidelines had been changed so that eligible FHA home buyers could have their participating lenders "monetize" tax credit funds they are eligible for so that these buyers may use these funds to meet the minimum 3.5% down payment requirements on FHA home loans. I'm glad Secretary Donovan did this, because although this announcement and its associated Mortgage Letter were retracted until the fine nuances were ironed out, Friday May 29th a new letter was issued. So, eligible first time home buyers, call your lenders and see if they are participating with this program to make the funds available to you.

Ready...Set...WAIT!

Neighborhood Stabilization Program
Well, finally, the waiting is coming to an end for some of these programs to be up and running for today's eligible Oregon home buyers to take advantage of. The Neighborhood Stabilization Program is just awaiting its final stamp of approval which should be coming through any day now. One segment of this program will be made available to home buyers who are looking to purchase bank-owned or privately financed properties that have been taken back through foreclosure proceeds. Matching down payment funds, closing costs and reasonable/eligible repair costs may be funded through the Neighborhood Stabilization Program funds - up to $50,000 per home!

Ready...Set...GO!
Yes, you heard that right...GO! The Neighborhood Stabilization Program for Oregon is about ready to accept reservations. If you are a buyer who has gotten all your ducks in a row and are prepared to jump on this opportunity, DO IT NOW! Not many lenders and realtors have familiarized themselves with these program requirements, so you may be a bit frustrated when calling around about it. If you are looking to buy in Southern Oregon, call me and I can help you with your financing, and recommend you to Realtors who are knowledgeable about the program guidelines. Why the sense of urgency you may ask? Very limited funding allocation is available, and it's first come, first served, so the early birds will be catching this particular worm. I've been on the phone with all my eligible buyers and Realtor referral partners spreading the word, and would love to play a part in the successful outcome of the Neighborhood Stabilization Program, which is to help eligible home buyers while getting foreclosed homes off the market.

Oregon is trying to get the $8000 "monetized" for non-FHA or non-participating lender programs by June 30, 2009, so get ready now!

See you at the closing table!
Karen Cooper - OR/CA Mortgage Consultant - http://www.quality4loans.com/

Know a Southern Oregon First Time Home Buyer who could use up to $50,000 for their home purchase?

2009-05-11T13:32:00.001-07:00

Oregon is onboard the Neighborhood Stabilization train, and has submitted proposals to HUD on how they plan to allocate funds from the Neighborhood Stabilization Program that was approved under the 2008 Housing and Economic Recovery Act. The number of foreclosed homes in Jackson County has led to allocation of funds from the Neighborhood Stabilization Program to Jackson County home buyers willing to purchase and rehabilitate these bank owned homes. The last update I received from Oregon Housing and Community Services was they are awaiting the final stamp of approval from their legal department before releasing the final guidelines, but here are some you may expect:

Maximum NSP investment per home buyer will be $50,000 or the difference between the total cost (acquisition and modest rehabilitation) and amount of mortgage eligible buyers can obtain (which ever is less). This means down payment assistance, folks!

Funds will be in the form of a "soft second" loan, bearing no interest with payments deferred until the homeowner refinances or transfers title.

A share of the appreciation will be due at transfer of title, and may potentially be waived if OHCS grants an exception.

Income limits for Medford Area $18,200-83,800 depending on family size (2008).

Work to be done by a licensed contractor, and cannot be done by the homeowner. Work will be paid for upon close of escrow.

Sound like something that might be a solution to your becoming a homeowner? Call for more details, or go online and apply to be preapproved for your home loan today at http://www.quality4loans.com/.

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - http://www.quality4loans.com/

American Pacific Mortgage, 301 B Crater Lake Avenue, Medford OR 97504 OR License ML-2338; 3000 Lava Ridge Court #200, Roseville, CA 95661 CA DRE Broker License 01180222

Oregon Not Set Up to Fund $8000 Tax Credit Through Closing

2009-03-16T12:40:00.000-07:00

It is with regret that I report the findings of my quest to find a way for qualified Oregon home buyers to utilize the $8,000 tax credit recently approved, and apply it to their down payment on home purchases.

The State of Oregon does not have the necessary revolving fund needed in order to be able to advance the $8,000 Federal Tax Credit to buyers through this state's housing programs, such as the Purchase Assistance Loan and/or Oregon Bond Loan. Oregon Bond Loan is already struggling to sell the mortgage revenue bonds that fund the RateAdvantage and CashAdvantage programs, and the RateAdvantage program is about to do the way of the CashAdvantage, Down Payment Assistance and Purchase Assistance Loan programs which all ran out of funds in 2008, and still remain unavailable to qualified Oregon home buyers. The State of Oregon's focus is to fund the Oregon Bond Loan and other existing programs, so starting a new program like establishing a Revolving Fund to help pass through these $8,000 tax credits to qualified Oregon first time home buyers is out of the question.

But, all is not lost, Oregon home buyers! Even though funding has not been released for the USDA Guaranteed Rural Housing program by some lenders, if you buy a qualified property under this fantastic No Money Down program that is a government backed 30 year fixed rate loan, there are still lenders that WILL close on this program right now, letting you get the jump on what just might be a very busy Spring/Summer buying season here in the Rogue Valley in Southern Oregon.

If you have discovered like many first time home buyers that prices have come to levels that make the monthly costs of owning a home almost equivalent to renting one, and want to take the plunge while interest rates are low and before the $8,000 tax creditis no longer available to you (sunsets after December 1, 2009), call me. I'd love to sit down and run through the numbers of the various programs that might be available to you, and tell you about the many wonderful tools available to help you enjoy the many benefits of homeownership. Schedule your free consultation today!

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com

REAL Help for Struggling Homeowners On The Horizon?

2009-03-16T12:25:00.000-07:00

Although the Making Home Affordable Program is to be made available to struggling homeowners April 4, 2009, and official announcement went out March 4th from the Federal Housing Finance Agency, the banks and mortgage companies have not yet figured out the details of the Home Affordable Modification or Home Affordable Refinance programs. A call made to Countrywide Home Loans today to inquire about Note Modification through the "Making Home Affordable" program resulted in being directed to call back at the end of March. I hope they get on this soon, as some of the people I've been talking to have been teetering on the edge trying to hang on for quite a while now.

I'm getting calls from existing customers who are hearing reports on the recent housing stimulus package released March 4th, so I figured it was time to call in and find out for myself what homeowners are facing when they initiate the process of obtaining a note modification. I was happy to discover that one of the questions asked by Countrywide's automated system was to inquire if the call was being made by the individual or by a "third party", which hopefully means the banks and mortgage companies are cracking down on the many note modification transactions that homeowners have the ability to (and should!) take care of themselves.

CBS Marketwatch. Com published an article that gave more detail than has been available up to this point. Highlights are:

For Note Modifications-
-There are incentives now for removing second liens on loans modified under this program
-There is a refinance option for homeowners who have an existing mortgage owned by Fannie Mae or Freddie Mac if their current loan-to-value ratio is above 80%
-Mortgages with an unpaid principal balance of up to $729,750 may be eligible for the program
investor-owned properties may not participate (I've read a contradiction to the investor owned criteria, today)
-This program is scheduled to expire by the end of 2012
-Servicers will receive an up-front fee of $1,000 for each modification, which in turn may be passed through the program participants as "pay for success" fees paid for still-performing loans of $1,000 per year going to homeowners who make their payments on time int he form of principal reduction payments of $1,000 each year for up to five years
-Lenders receive bonus fees if modifications are made while a homeowner is still current on their mortgage payments

For refinances-
-Lenders must reduce monthly payments on mortgages so that the borrower's payment is no greater than 38% of income
-The government shares the burden of reducing payments to 31% of the homeowner's income
-To reach the 31% target, interest payments will first be reduced down to as low as 2%
-If the rate is still above 31%, then the life of the loan can be extended up to 40 years. Only then would the plan forbear principal at no interest to meet the target.

More details need to be ironed out, and I know I have many questions still, like does the 31% include tax and insurance payments? How is income calculated for homeowners whose income is self-employed/commissioned/bonus income? My guess is it will be the same automated underwriting system criteria we've had in Desktop Underwriter for Fannie Mae loans.

So, as unpalatable as all the stimulus bills and bailout programs have been, SOMETHING needs to be done to stem this fast descent we're seeing with our economic downturn. Do you think these programs will help? If not, do you have better ideas?

See you at the closing table!
Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com

Here Today, Gone on Friday? How Is YOUR Bank Doing?

2009-02-21T16:55:00.000-08:00

There’s a lot of talk these days about the nationalization of U.S. banks, how good credit unions may be a safer place to park our money these days, and the “Texas Ratio” which calculates the likelihood of a bank’s failure. The Texas Ratio is a ratio that was developed by Gerald Cassidy and many other analysts now at RDC Capital Markets that they formulated during the Texas Savings and Loan crises back in the early1990s. It takes a bank’s non-performing assets and loans which include loans that are delinquent for more than 90 days, then divides this number by the bank’s “tangible equity plus its loan loss reserve”. If this calculation equates to a ratio of 1:1 – a number of 100 or great – it is considered a warning sign. The higher that number, the better the chances of that bank’s failure.

As much as I like to crunch numbers, I also like to use my time wisely! So rather than dig around and collect the data to calculate these numbers for banks we have relationships with both personally and through business dealings, I’d much rather have a list to check that someone else already did, although I probably will calculate these ratios for banks we have accounts with. I came across this link in a comment on an article on CBSMarketwatch that not only provides the names and Texas Ratios for several banks, but their locations are mapped, too. But, being the type who likes to check and double-check my data sources, I like having another information resource. http://www.click2map.com/maps/kwaldman/High_Risk_(Texas_Ratio)_Banks
http://bankimplode.com/list/troubledbanks.htm

So, now we can pay attention to banks who have accepted T.A.R.P. funds AND keep an eye on this Texas Ratio results list to see if we need to do any other “readjusting” so that: a) we aren’t supporting organizations whose business philosophies do not coincide with our own, and b) we don’t get thrown under the bus by the fast demise of a bank. For example, Silver Falls Bank was one the most recent Oregon Bank failures, having been taken over by the F.D.I.C. on Friday, and their Texas Ratio is reported at 176 on this list, but in January 2008 they were putting out positive reports on their stability! The FDIC will not publish their internal list that they keep, and as much as I would hate to see any “run on a bank”, nor do I want to find I can’t get to my money if I want to! Yeah, our deposits are insured, but who wants to deal with this?

Is this Texas Ratio an infallible predictor? Obviously not, since WaMu and Wachovia did not have Texas ratios that sent up caution signs, yet they have both failed for various reasons. So, how healthy is YOUR bank? Maybe you should check it out. http://bankimplode.com/list/troubledbanks.htm

See you out there!

Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

Ready...Set...GO! Get Your $8000 Tax Credit for Your Down Payment!

2009-02-21T16:23:00.000-08:00

There is some good news on the horizon for home buyers who are ready, willing and able to enter the world of homeownership!

There are several provisions in the overall stimulus package that President Obama's approved Tuesday. One of the most beneficial provision for home buyers is an $8,000 home buyer tax credit for new home buyers - buyers who have not owned a home in the past three years. For qualified home purchases in 2009, the legislation:

· Stipulates that the $8,000 tax credit does not have to be repaid, unlike the tax credit passed last summer (has a recapture provision if the home is sold in the first 36 months, though);
· Keeps the tax credit refundable, or claimable regardless of tax liability;
· Extends the "sunset" date from July 1, 2009 until Dec. 1, 2009 so that consumers can utilize it during the critical summer and fall buying months;
· Allows tax credit home buyers to participate in the mortgage revenue bond programs, such as Oregon Bond's RateAdvantage program; and
· Permits state housing finance agencies to help buyers at closing by advancing the credit amount as a loan using tax-exempt bond proceeds - this is even better than the Oregon Bond CashAdvantage program, as you may still take the really great rate on the RateAdvantage program.

While much of the focus has been on the home buyer tax credit, there are several other important components in the legislation that will help small businesses and bolster the housing market. Additional provisions that relate to housing in H.R. 1, the American Recovery and Reinvestment Act of 2009, will:

· Help home borrowers wanting to purchase or refinance homes in the high-cost markets by extending the 2008 FHA, Fannie Mae and Freddie Mac loan limits of $729,750 through the end of 2009;
· Temporarily allow exchange of Low-Income Housing Tax Credit allocating authority for tax-exempt grants and appropriates $2 billion in HOME funding for affordable housing projects (this should make housing developers trying to keep their construction crews busy happy!)

Think $8,000 would help you get the home you want to buy? Want to find out if you meet the criteria? Call me at (541)608-6003 or e-mail me for your free consultation, and I'll gladly share my 25 years of experience with you.

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com

Don’t Forget The Taxes and Insurance And Maintenance Expense!

2009-02-04T09:23:00.000-08:00

Something I’ve always made a point of emphasizing with first time home buyers – and with long time homeowners and move up buyers as well - are the “other costs” associated with homeownership. Many first time homebuyers are focused on the principal and interest part of the mortgage payment, and when they use an online loan calculator (or often times when speaking to their loan officer), the attention remains on the principal and interest portion of the payment only. And it recently came to my attention that homeowners seeking note modification may also be focused only on the mortgage portion of their monthly payment.

But, what about the other expenses that will be used when a buyer or homeowner is being qualified for their home loan:

Property Taxes
Homeowner’s Insurance
Mortgage Insurance
Homeowners Association Dues

And how about utility expenses - electricity, natural gas, heating oil, wood/pellets, water, sewer, trash pickup- are these expenses being included in your budget? Or maintenance costs, landscape maintenance, roof repair, paint/stain, septic system maintenance…have you seen the movie “The Money Pit”? This can be a lengthy list! Have you incorporated these other expenses associated with the home you are purchasing in to your budget?

So, my tips for today…

First time homebuyers – make sure you are budgeting for all the costs associated with homeownership AND that you have the cash available to make the repairs and/or do the updating you plan to do to your new-to-you home. One of the tools you may use to accomplish this goal is a loan program that will assist you with meeting your objective to purchase a home AND do repairs/updating, like the USDA Guaranteed Rural Housing loan or a Remodel/Renovation loan.

Existing Homeowners seeking Note Modification – consider all your monthly housing expenses when looking at the terms your lender is offering you. Don’t you want to turn the majority in favor of the homeowners who successfully accomplished their goal of remaining in their home through note modification?

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

When Is It Time To Refinance? (Part 1 of 6)

2009-01-01T14:19:00.000-08:00

A long-time, good client of mine recently asked “how do I know when it makes sense for us to refinance? Is there a set rule of thumb we should follow?”.

Well, there really is no set in stone rule, as there are so many variables involved in determining this. I know a lot of people use a very rough rule of needing to reduce your interest rate by at least 1%, but there is so much more that needs to be considered than just the interest savings alone.

One of the most important determinations my clients and I make together is what their main objective is and which loan program offers the pricing that best helps them meet that objective. For example, not all that long ago, for the person holding a property for a short time whose monies may have been tied up in the stock market making a nice return for them, the Option ARM (adjustable rate mortgage) may have been the best choice for many of them, as while they were paying the initial low interest rate they could leave their investments where they were at, bringing them great income.

But, this situation only fits a small segment of those seeking financing. More often, people are looking to refinance in order to:

Exchange an existing adjustable rate and/or interest only mortgage for a low fixed interest rate
Consolidate mortgage(s) and/or other bills
Exchange an existing fixed rate mortgage for a lower fixed rate mortgage
Take a substantial amount of cash out from equity in order to do long overdue updating or purchase a retirement home while prices are low

As with all your major financial decisions, you should include your tax professional in the loop during the decision making process. The professional services of your tax expert could help you avoid serious tax consequences. Don’t you think the fee they charge you might be small in comparison to the tax liability a mistake could bring you?

To keep these articles manageable in size, I’ll be addressing each case in its own post, as well as some common hurdles being faced in today’s lending environment. Until then,

See you at the closing table!
Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

When Is It Time To Refinance An Adjustable Rate or Interest Only Mortgage? (Part 2 of 6)

2009-01-01T14:10:00.000-08:00

Does it sound crazy that someone would give up an interest rate in the low 4’s to take an interest rate of 5-5.25% - AND spend thousand of dollars to do it? Many people today are doing just that. “Why?!?!?” you might ask. Well let’s look at some history and basic Econ 101.

What eventually happens after a government prints trillions of dollars and pours it in to its economy? INFLATION! What is the evil nemesis that triggers interest rates on mortgages to shoot up? INFLATION! Forget the effects of shouting “Fire!” in a crowded theater, as this will be nothing like the stampede many believe will be storming through the gates when INFLATION becomes the common call we all hear in the news.

Don’t get me wrong, I’m happily paying the extraordinarily low interest rates we have on our home equity lines of credit, grinning from ear to ear at such “cheap money”. But, folks, these interest rates are NOT NORMAL, and like the high housing prices many thought might go on forever they are UNSUSTAINABLE. I’m just grateful that our home equity lines of credit have terms that allow us to make a simple phone call to lock in a fixed interest rate on it when the tide turns, which it inevitably will do. I’m expecting to be on hold for quite a while the day I make that call while our bank sorts through the many other people frantically trying to so the same thing.

So, what if you have a nice low adjustable interest rate? Why would you want to pay the closing costs associated with refinancing AND/OR take a higher interest rate than you are presently paying? Well, I don’t know about you, but MY crystal ball seems to be a bit foggy. There is no clear projection on WHEN the interest rates will rise, nor HOW FAR or HOW FAST they will rise. What happens if you have a projected interest rate target, and you miss it? If you end up with a higher rate for the long term fixed rate mortgage you refinance in to, did hanging on to the lower adjustable rate a while end up costing you much more in the long run? So, maybe you give up 3/8% in annual interest savings for a year, but then you end up with ½% higher on the fixed interest rate for the long haul.

Gauging this exactly is as easy as gauging “the bottom” in the real estate values…we’ll only know it was there when we’re looking back. So, taking in to consideration that we presently have interest rates we haven’t seen in many decades, do you think it’s a pretty good gamble to take to lock in a fixed rate now?

See you at the closing table!
Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

When Is It Time To Refinance to Consolidate Mortgage(s) and Other Bills? (Part 3 of 6)

2009-01-01T14:04:00.000-08:00

Would you believe there are many people out there with 20-30-40-50% equity in their homes, even based on today’s current market values? Even people who own their homes free & clear of any loan? Some people look at their long term financial objectives, which may include paying their home loan off within a certain period of time, look at their budget, and steadily chip away at their loan balance. I realize we don’t hear nearly as much about these folks in the media, but trust me – they DO exist – and there are quite a few of them in the U.S.!

I have heard from such people who are looking at their future plans which include putting their kids through college, finding their retirement home or updating the home they’ve decided they’ll be staying in for the long term after all. Some of them had unexpected expenses they incurred debt for, and are looking to shuffle things around with mortgage interest rates so low. Dealing with that four letter word l*i*f*e, there are always unforeseen events cropping up, including those that affect us financially that we may or may not have been able to set aside the reserves to cover.

So, maybe it is time to shift that $50,000-70,000 worth of student loans in to a more tax advantages form of debt. Maybe it is time to buy that retirement home while values are so low, renting it out until the market turns around or the last child is launched, and it’s time to sell an existing primary residence. Maybe a young person/couple whose income has increased dramatically is looking for a second home and/or restructuring of their financing for tax purposes. Maybe your tax professional has done some year-end consulting with you and recommended a debt load be shifted around.

These are the types of scenarios which come with very specific individualized goals where a set rule of thumb cannot be used to gauge if interest rates are “low enough” to refinance. So many questions need to be answered, like:

How much is the interest being paid on each debt being consolidated?
What would the retirement home rent for, and how much needs to be put down to have it “hit break even” until it is moved in to as a primary residence?
How long will the home being financed be held?
What eligible tax benefits are available?

There really is no set rule of thumb that may be applied in these scenarios. An individual’s plan needs to be looked at and its variables taken in to consideration. Maybe other savings need to be applied to the transaction, or partial debt rolled in with the monthly savings applied to paying off the balance not paid off.

This is where bringing in the professionals to help analyze your individual plan becomes crucial. And this is also where I am reminded to thank those people who have shown the confidence to include me in their decision making processes. It is with great satisfaction I see so many people succeeding with their real estate ownership, and I’m grateful to be a part of their success.

See you at the closing table!
Karen Cooper – OR/CA Mortgage Consultant – http://www.quality4loans.com/

When Is It Time To Refinance An Existing Fixed Rate Mortgage for a Lower Fixed Interest Rate? (Part 4 of 6)

2009-01-01T13:16:00.000-08:00

This is the type of transaction where the rules of thumb are most likely to come in to play. A homeowner or investor is strictly looking to reduce their existing interest rate and/or payoff their mortgage faster. And here is where many people are told they need to save at least 1% on the interest rate to make refinancing worthwhile.

But again, there are variables that need to be considered:

What are the closing costs associated with the transaction?
When is your “breakeven point” when the interest savings will have covered the costs associated with the transaction?
How long do you plan to keep the home/property?
How far are you in to the repayment of your existing mortgage(s)?

I’ve spoken with many people who are “waiting out the real estate market”, waiting for when this current cycle turns and their property values increase. We can only give this our best guess on how long this will take, but a guess needs to be made to try to make sure the costs will be recovered within and the benefit of the lower interest rates seen during that period of time. Some people have no intention of ever selling their home, and having a longer period to hit the “breakeven point” would be okay. Others have had their existing mortgage for many years, and a lot more of their payment is going toward reducing their principal than paying interest, so how much interest remains to be paid based on their amortization schedule comes in to play. Still others experience such a dramatic improvement in their existing rate that the costs are offset very quickly.

This is where it is critical that you: a) talk to your financial planner/tax advisor and b) go to someone you know and trust to talk about your financing, someone whose goal is to help you meet your goals and objective, not just make a profit from you.

See you at the closing table!
Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

When Is It Time To Refinance to Cash Out a Large Amount of Home Equity? (Part 5 of 6)

2009-01-01T13:10:00.000-08:00

There are some pretty financially savvy people out there carefully watching what the markets are doing, including the bond markets and mortgage interest rates. Over the years, they’ve listened carefully to their financial/tax advisors and have educated themselves, keeping up with what these markets are doing. They caught the wave of low interest rates several years ago, and already have a nice low fixed rate on their mortgage.

But, the time has come for them to take some equity out of their home/property, maybe for one of the reasons listed in Part 3 of 6 of this series of articles. If they already have an interest rate of 4.5%, and the interest rate they might qualify for today is 4.625-5%, why would they want to refinance? Should they instead take a 2nd mortgage loan or line of credit? Should they just sell their home/property and pay those closing costs instead?

Once again, several variables need to be considered:

How much cash out will they need, and for what purpose? What tax ramifications are they facing for this purpose (contact your tax professional!)?
What is the “blended rate” if the cash out was taken in the form of a 2nd mortgage?
What is the difference in closing costs between taking a 1st mortgage and a 2nd mortgage based on the lower loan amount, or a “no cost” home equity line of credit?
If the property securing this loan will be eventually sold, what is that projected sale date?
If the property being refinanced will be held long term, where is the owner in their amortization schedule on their existing mortgage?

Now I’ve said this over and over again, but under this reason for refinancing you especially need to talk to your tax professional before you subject yourself to tax consequences and incur unforeseen or avoidable tax liabilities. Believe me, I speak from experience, having incurred an unnecessary capital gains tax liability on a transaction I did in 1989 without consulting my tax advisor. One of those really expensive school of hard knocks lessons I’d like to see others avoid!

See you at the closing table!
Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

When Is It Time To Refinance? – Common Obstacles In Today’s Lending Environment (Part 6 of 6)

2009-01-01T12:52:00.000-08:00

It is hard for me to believe the percentage of people who have inquired about a home loan with me I have had to tell I couldn’t help due to one reason or another. In 25 years in this business, I’ve never seen so many! Here are some of the most common reasons for the people I’ve talked with:

Estimated Market Value determined by an appraisal is insufficient to support the loan amount you wanted to borrow.
Need Stated Income program due to self-employment, but these programs are no longer available.
Declining Market Value Area determination restricts your loan amount by 5%
Wanting to know you are getting the lowest interest rate, timing the “bottom” of the market, but missing it by procrastinating or gambling on waiting and having low distress sales further decrease your property’s value.
You haven’t been monitoring your credit, and an error was discovered when you applied for your loan and/or creditor(s) lowered your credit limit sinking your credit score due to the ratio of amount owed vs. the account limit.
Your revolving/installment debt balances increase and/or your income has declined, so now you don’t meet the tighter debt-to-income ratio criteria many programs have.
You fall in to the "Jumbo Loan" category, a market that has been turned upside down due to the exit of the investors who provided the funding for these loans, and the available interest rates are too high.

Now more than ever we need to remain proactive with monitoring our credit, limiting our credit usage, budgeting, and investigating as best we can the financial companies we are looking to do business with.

See you at the closing table!
Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

A Borrower’s Guide to Locking In Your Interest Rate

2008-12-19T12:49:00.000-08:00

Are you in the process of getting a home loan for a home purchase you are planning to make here in Southern Oregon? Or, maybe you heard about the incredibly low interest rates we've been seeing for qualified homeowners looking to get a lower interest rate than they have presently? Want to grab this opportunity before it gets away from you? Confused about the way the pricing can move in this extremely volatile market we've been experiencing in the mortgage industry? You need:

A Borrower’s Guide to Locking In Your Interest Rate

When you “lock in”, you are requesting the lender guarantee the interest rate on your loan and the lock period is for a specific length of time – e.g. 15 days if your loan is approved and ready to have final loan documents drawn so you may close your transaction within this period of time, 30 days which covers the processing time for most conventional refinance times, 45 or 60 days for many purchase transactions which often are scheduled to close within that period of time, longer periods for loans on newly constructed housing. The longer you request the interest rate be guaranteed/locked-in, the more it costs. Say you are approved on a program that offers a 4.75% interest rate, and you are considering a 15 day lock that would have a cost of 1 point (one percentage of the loan amount) or a 30 day lock that would have a cost of 1.25 point. The longer the lock you choose is for, the higher your points may be. Depending on the loan program you are on, you may also buy the interest rate up to have lower points, or down by paying more points.

To know what the true cost of the money you are borrowing is, you will look to the APR – the annual percentage rate – which takes an average of certain closing costs and the interest rate you pay, including mortgage insurance, and average them out over the term of your loan giving you a percentage. The higher the APR percentage, the higher the costs associated with your loan. It is important you check the APR because sometimes a loan quote you have received that sounds good because it's "note rate" - the rate quoted to you - is lower than other quotes, but due to higher fees, mortgage insurance, etc., its APR works out to be higher, making it not the best deal for your long term plans.

With the closing of so many banks and lending companies over the past several months and the laying off of staff due to the market downturn, the remaining lenders sometimes have longer processing times, and this would also need to be considered when choosing the lock period. It is always good to leave a few extra days on the lock period in case there are unforeseeable delays, especially on purchase transactions. Even when you are working with the best of the best professionals on your transaction, with so many factors associated in transactions, things can happen to delay a closing. The stories I could tell after 25 years! Couriers in auto accidents on the way to the recorder’s office with documents to be recorded, sellers who pass away, closing funds that were stolen by a teller from a buyer’s bank account… situations that simply could not be controlled by the parties to the transaction.

These cases have been extreme cases, and the large majority of transactions I’ve been involved in closed on time. Careful attention, to the process and experienced professionals working together, eliminates most delays. Want more information or a free consultation about your individual goals and objectives? Call (541)608-6003 or go to http://www.quality4loans.com/ .

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

Southern Oregon ABC’s of Homebuying Class this Saturday December 13th at Rogue Community College

2008-12-09T21:11:00.000-08:00

The next "ABC's of Homebuying" HUD approved course for first time homebuyers is coming up this Saturday December 13, 2008 from 9 a.m. - 4 p.m. at Rogue Community College in Downtown Medford. Not only is this is the required course for several first time homebuyer programs, but it is a great source of information for the first time homebuyer AND buyers who are re-entering the market after being on the sidelines of the real estate market for several years.

For information on registration and directions, follow this link, or contact the Southern Oregon Housing Resource Center at ACCESS, Inc. (541)774-4329.

If you are planning to attend and saw this notification here, look for me as your Instructor for Section 2 on Financial Preparation and possibly Section 3 on Mortgages.

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com

Investors May Finance Up To 12 Properties

2008-12-03T13:02:00.000-08:00

Here in Southern Oregon where we haven’t experienced the same level of real estate market devastation as California, Florida, Nevada and Arizona there is still a silver lining to be found in our beautiful puffy cloud skies.

With market values in Jackson County Oregon roughly 8% lower in our year over year statistics, we’ve also seen a steady contraction in the inventory of available homes for sale – also 8% lower year over year.

As is customary when the general populace begins to think we are seeing some great values, there are buyers coming out of the wood work…450 of them, to be exact, from August 1st through October 31, 2008 in the Rogue Valley.

Many of these buyers are investors, savvy, experienced, and taking advantage of some great bargains. Until recently, these investors might be able to take out purchase money financing with no limitation on the number of financed properties they owned. This has just changed:

Guideline changes EFFECTIVE IMMEDIATELY!

Max LTV for investment properties is now 65%.

Cash-out on 3-4 unit investment properties is limited to 60% max LTV.

The number of financed investment properties owned by one borrower is limited to 10 (this does not include their financed owner-occupied and/or second homes).

Out-of-State investors are strictly case-by-case, and limited to 60% max LTV.

At this time, there are still no exceptions allowed under the Non-Owner Occupied program.

For Investors meeting Fannie Mae Underwriting criteria (680+ credit score) may put as little as 15% down, but cannot have more than 10 financed properties INCLUDING THEIR PRINCIPAL RESIDENCE AND SECOND HOME.

Still not bad, all things considered. So, Southern Oregon investors, call today for your free consultation, or go online at http://www.quality4loans.com/ .

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – http://www.quality4loans.com/

5% 30 Year Fixed Rate, But My Value Is Too Low?

2008-12-02T13:22:00.000-08:00

With the recent major improvement in the Bond Market Yields finally translating to improved interest rates on long term fixed rate conventional financing, there has been a bit of a flurry of activity here at Quality Home Loans in Southern Oregon, trying to help clients take advantage of this boon.

Keeping track of the homeowners who may benefit from refinancing as opportunities present themselves is a part of any professional, experienced mortgage consultant’s duties. Since the public doesn’t catch wind of market moves until the media reports come out days/weeks later, the average person often misses the boat by the time they pick up the phone to call to see about getting a lower interest rate on their home loan. Maybe your profession has nothing to do with the finance/mortgage industry, so you go to the professionals who do follow this.

Seeing the lower trend in some mortgage programs’ interest rates, the past several days have been spent checking on value ranges for homeowners who would save enough to warrant the expense associated with refinancing. Then, it’s time to prepare a Good Faith Estimate and Truth-In-Lending Disclosures on the proposed programs for those homeowners and investors who could gain enough interest savings to offset their closing costs.

Unfortunately, many property owners’ values have descended. Those that have tapped in to their equity before may find themselves “underwater” – owing more on their mortgage(s) than their property is worth in today’s market. Others may have purchased their home within the past 1-5 years, and although they haven’t touched their equity by refinancing or taking out a 2nd loan/line of credit, they may be located in areas where foreclosures are prevalent causing the market values to be set by these distressed sales.

I am working with two such homeowners who purchased their homes a year ago and want to get a lower interest rate and eliminate mortgage insurance. Even though the mortgage insurance may be tax deductible for them (this ruling is subject to change), and they got good deals at the time they purchased their homes, the values have either decreased slightly or stayed the same. Having the required mortgage insurance in the equation makes refinancing too costly.

So, the one gentleman who wanted 5% with no mortgage insurance would have to be quoted 5.25% (apr 5.412%) on his conforming 30 year fixed rate $227,000 mortgage – and he may or may not get the appraised value needed to even do this, since his appraisal would need to come in at the high end of the range of sales comparables available today.

But, another family who has owned their home since 2001, has 35%+ equity even after taking out a 2nd to consolidate student loans a year ago WILL be able to take advantage of the really low interest rates we’re seeing right now. Yet another, who has owned their rental since 2003 is sitting right on the edge of whether the numbers “pencil out” or not, so they’ll have to decide if anteing up the appraisal fee to find out is worth while.

If you are wondering if it makes sense for you to refinance your home/property in Oregon or California, call or contact us online for a free consultation.

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

Top Five Reasons to Pull Your Credit Annually

2008-11-13T23:18:00.000-08:00

Have you heard about www.annualcreditreport.com? This is the website you may go to where you may pull your credit report from each of the three main credit bureaus, Experian, Trans Union and Equifax. This is a simple process, and you may pull your credit report from each bureau for free once a year. This will not include your credit scores, but for a small charge for each bureau, you may order that too if you are getting ready to make a major purchase that will involve financing, and you need to see where you are at.

Why should you pull your credit report each year?

-To check for any errors in reporting the information on your accounts, such as incorrect high credit limits, or erroneously reported late payments
-To check for cross over information to your report for someone who has the same or similar name
-To check for identity theft
-To make sure old information is dropped off, such as closed accounts more than 7 years old or accounts that were discharged through bankruptcy are not still being reported past due
-To make sure accounts you have paid off are reported with zero balance

Why should you do this yourself instead of letting a lender do it for you?

When you exercise this annual right you have, it will not result in an Inquiry that is reported on your credit profile. Although many sources say a mortgage inquiry will not affect your credit scores, I’ve seen time and time again that this is wrong. If you have several inquiries, but no new mortgage is reported as a result of them, your credit scores may drop.

If you make this a regular process each year, you’ll head off what could be a stressful nightmare if you wait until you are in the middle of qualifying for financing to find out there is a problem you need to take care of. Pull your own credit, and the report contains all the necessary instructions and contact information should you find it is necessary to dispute information reported in your credit profile.

If you need to call the bureaus, prepare to be patient as it will take time to work through their systems. But, you can do it yourself, and you do not need to pay anyone to do it for you. Once you get through to the credit bureaus, most minor errors can be resolved easily. Some errors will need to be disputed with you providing the supporting documentation to prove your case in order to have changes made. These are usually handled by mail.

If you have not seen your credit in over a year, go to http://www.annualcreditreport.com/ and see what information is being reported about you.

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - http://www.quality4loans.com/

Distressed Homeowners, More Help Is On The Way

2008-11-11T20:36:00.000-08:00

Do you own a home, one you have been struggling with making the payments on? Have you given up hope of keeping your home, and stopped making your mortgage payments? Is it your wish to be able to stay in your home, if only the payments on it were more affordable?

Homeowners there are rays of sunshine in all the gloom in the housing market. A streamlined approach is being rolled out to help distressed homeowners wanting to stay in their homes. By December 15, 2008, servicers of loans sold to Fannie Mae and Freddie Mac - this is roughly 58% of ALL the outstanding mortgages in the housing market, Folks! - will be working harder than ever to help struggling homeowners most at risk of losing their homes through foreclosure. These are the homeowners who have missed 3 or more consecutive monthly mortgage payments. If this is you, call your lender and find out if a Note Modification is available to you - even if you have tried this before.

Citi announced they have a separate program in place to aid their own struggling homeowners, a program that is at least as aggressive as the one Fannie Mae and Freddie Mac will be following. So, if you are making your mortgage payments to Citi, and are falling behind, call them to see if a Note Modification is available to you - even if you have this tried before.

These Note Modification plans are designed to quickly find a solution to get your mortgage payments to roughly 38% of your gross monthly income (before taxes; after business expenses if you are self-employed). You do not need to pay anyone to do this for you. You can and should do it yourself. Banks and Mortgage Companies are looking at several reasonable avenues to help accomplish stemming the foreclosures by making mortgage payments affordable for those who qualify.

This does not mean qualifying by traditional means! It means reducing interest rates, fixing interest rates, lengthening loan terms, forgiving principal and/or interest. They are looking for ways that you may sustainably continue to live in your home by making the payments affordable. They expect you to have low credit scores with the financial hardship you are experiencing.

Folks - are you picking up on the common threads here? There may be several options available to help you and Stay in touch with your lender, no matter what your circumstances are - struggling, starting to fall behind or way behind. If you don't contact them, you may miss out on an opportunity that would help you to stay in your home. Isn't that the best solution for everyone?

Have questions? Go to Frequently Asked Questions on this topic.

See you out there!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com

Distressed Homeowners Frequently Asked Questions

2008-11-11T20:25:00.000-08:00

In conjunction with the Blog Post "Distressed Homeowners, More Help Is On The Way", here are some questions and answers:

Q. Can I apply even if I'm not 3 months or more behind on my mortgage payments?
A. Not for this program, but there may be other options available to you. Call your lender to see what options are available to you.

Q. Should I stop making my payments so I'll be approved for a Note Modification?
A. If you intentionally default on your mortgage, the lenders will not approve your request for assistance.

Q. What is a Note Modification?
A. A Note Modification is a change of the original terms of your mortgage loan. It could be a change from adjustable rate to fixed rate, a change in the length of your home loan, a change of the interest rate, a reduction in the amount owed on your mortgage loan, etc. with the intent to make your loan more affordable.

Q. I've already contacted my lender for help, and was turned down. Why should I try again?
A. Things have been pretty chaotic in the mortgage industry with the quickly escalating rate of foreclosures, closures and mergers of banks/lenders, changes to regulations, etc. It has taken some of the banks/lenders some time to figure out what works and what doesn't, what is required and what isn't. Make the assumption there may be a new alternative available to you, and call your lender to find out if you qualify for this new Note Modification program, or any other alternative they may now have for you.

Q. Will someone call or write me to let me know I will qualify for these Note Modification programs?
A. Some Banks/Lenders are trying to be proactive, but it will take some time to contact all the borrowers at risk of foreclosure. Be proactive, and call your lender - don't wait for them to call or write to you.

Q. I lost my job, and I earn less than I did before. Will I still qualify? What if I am still out of work?
A. Banks/lenders are working with current incomes and the current home values when considering Note Modifications. If your income is less than it was before, your mortgage payments have increased beyond what you can afford, you need to call your lender to see what options they have for you. If you cannot prove you have steady income to pay the mortgage, chances are your request may be denied, but if you have the means to pay something with reasonable modifications based on income you can prove you make, there may be help available. Even if you aren't yet 3+ months behind on your mortgage, call your lender.

Folks - are you picking up on the common threads here? There are options available for many struggling homeowners and Stay in touch with your lender, no matter what your circumstances are - struggling, starting to fall behind, or way behind. If you don't contact them, you may miss out on an opportunity that would help you to stay in your home. Isn't that the best solution for everyone?

See you out there!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com

To Be Or Not To Be...Higher USDA Incomes for Jackson County Oregon?

2008-11-11T20:15:00.000-08:00

It looks like the proposed revisions for the USDA Guaranteed Rural Housing program may go in to effect January 20, 2009 for their programs. If so, Southern Oregon home buyers looking to purchase a qualified property outside of the Medford and Central Point city limits will fall in to only two income categories vs. the many we have been using.

For example, presently the income limits for qualifying USDA Guaranteed Rural Housing Home Buyers in Ashland, Talent, Phoenix, Jacksonville, White City, Eagle Point, Shady Cove, Trail, Gold Hill and the surrounding rural areas would be qualified using the following income chart:

Medford, OR MSA GUARANTEED HOUSING PROGRAM INCOME LIMITS
STATE: OREGON ------------------- A D J U S T E D I N C O M E L I M I T S -----
1 PERSON 2 PERSON 3 PERSON 4 PERSON 5 PERSON 6 PERSON 7 PERSON 8 PERSON*

MOD.INC-GUAR.LOAN

49550 56600 63700 70750 76400 82050 87750 93400

Come January 20, 2009, if no changes are made to the proposed policy, any qualified borrower(s) with 1-4 person household will be qualified up to $70,750 annual income. Familes of 5+ will be qualified using $93,400 annual income.

This will help a LOT more Southern Oregon home buyers to buy a home on this great 30 year fixed rate mortgage program! Plus, it is a much needed solution to offset the loss of the CashAdvantage Oregon Bond program as well as the loss of most down payment assistance sources in our area here in Jackson County, Oregon.

If you wish to find out if you are qualified for this great program so you may BUY instead of RENT your home, contact us today at (541)608-6003 or go online at Quality4Loans .

See you at the closing table!

Karen Cooper - Mortgage Consultant - Southern Oregon Housing Resources

2008-11-07T14:24:00.000-08:00

In order to help stimulate sluggishness in the high cost real estate markets, Fannie Mae and Freddie Mac had increased their loan limits for the second ½ of 2007 and for 2008 to $729,750. Based on declining values, they are adjusting these limits downward accordingly.

The new maximum conforming loan limit for the continental U.S. will be $625,500 for 2009

Here in Southern Oregon, this loan limit will cover most of our properties, as our medians are well below this limit. But, our neighbors to the South in the high-cost markets of California may still find these loan limits restrictive.

With the relocation of these California folks to the Rogue Valley, their buyers may find their financing choices will be a bit more expensive and can be pretty limited with the mass exodus of investors from the Jumbo Loan market.

Options are still available to you. For more information on financing alternatives for your Oregon/California purchase, like a great portfolio fixed program for Oregon buyers/ homeowners in need of a loan up to $600,000 that is usually priced only 1/2 % higher than conforming loans to $417,000 AND has options available that may take you up to 90% (with self-insured mortgage insurance!) or to higher loan amounts, contact us at (541)608-6003 (Oregon) or (661)478-7564 (California).

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com

To Be Or Not To Be...Higher USDA Income Limits for Jackson County Oregon?

2008-11-07T13:57:00.000-08:00

It looks like the proposed revisions for the USDA Guaranteed Rural Housing program may go in to effect January 20, 2009 for their programs. If so, Southern Oregon home buyers looking to purchase a qualified property outside of the Medford and Central Point city limits will fall in to only two income categories vs. the many we have been using.

For example, presently the income limits for qualifying USDA Guaranteed Rural Housing Home Buyers in Ashland, Talent, Phoenix, Jacksonville, White City, Eagle Point, Shady Cove, Trail, Gold Hill and the surrounding rural areas would be qualified using the following income chart:

MOD.INC-GUAR.LOAN 49550 56600 63700 70750 76400 82050 87750 93400

Come January 20, 2009, if no changes are made to the proposed policy, any qualified borrower(s) with 1-4 person household will be qualified up to $70,750 annual income. Familes of 5+ will be qualified using $93,400 annual income.

This will help a LOT more Southern Oregon home buyers to buy a home on this great 30 year fixed rate mortgage program that doesn't have PMI! Plus, it is a much needed solution to offset the loss of the CashAdvantage Oregon Bond program, as well as the loss of most down payment assistance sources in our area here in Jackson County, Oregon.

If you wish to find out if you are qualified for this great program so you may BUY instead of RENT your home, contact us today at (541)608-6003 or go online at Quality4Loans .

See you at the closing table!

Karen Cooper - Mortgage Consultant - Southern Oregon Housing Resources

Home Buyers - Forget Wall Street and Main Street, How About Opportunity Street?

2008-10-22T13:33:00.000-07:00

This week has made me feel a bit like this hamster. Running, running, running…but still in basically the same place. Trying to re-boot this mentality, I thought I’d do some market research for this gorgeous area I live and work in, Southern Oregon.

Just out of curiosity, I thought I would go explore how many homes are on the market in the Rogue Valley that might suit the entry-level buyer. Imagine my surprise when I had to cut the criteria back over and over again after finding 700+ homes for sale under $200,000! Narrowing in to categories, I found:

75 homes on the market priced from $ 90,000-135,000
73 homes on the market priced from $135,000-155,000
118 homes on the market priced from $155.000-170,000
302 homes on the market priced from $170,000-200,000

When was the last time Southern Oregon buyers have had the opportunity to find homes - this many homes! - available in these price ranges? My criteria stipulated 2+ bedrooms and residential, so this includes houses, townhomes/condominiums, and manufactured homes on land. It also includes a home for $154,900 in Ashland Oregon! And 8 homes built in 2003 or later in Medford Oregon priced from $170,000-200,000!

I saw so many potential buyers miss the boat in Southern California after the market picked up again after the Northridge Earthquake in 1994 and again after the 2001-2002 market slow down. I sure hope home buyers looking to purchase in our many fine Southern Oregon Cities – Ashland, Talent, Phoenix, Jacksonville, Medford, Central Point, White City, Eagle Point, Shady Cove, Gold Hill, Rogue River, Grants Pass, Merlin, Cave Junction, and Applegate/Ruch – don’t miss the boat this time around, while sidelined by the often times inaccurate portrayals they are reading/hearing/seeing in the news!

Tools are available, like Oregon Bond Loan and USDA Guaranteed Rural Housing Loan. Financing IS available.

http://activerain.com/blogsview/746737/Can-Ashland-Oregon-Buyers-Still-Get-100-Financing-in-October-2008
http://activerain.com/blogsview/726683/Oregon-Jumbo-Real-Estate-Loans-Still-Available
http://activerain.com/blogsview/635993/Seventy-Five-Hundred-Reasons-for-First-Time-Home-Buyers-to-Buy-NOW
http://activerain.com/blogsview/208966/Oregon-Bond-Loan-Still-the-Best-Deal-In-Town

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – http://www.quality4loans.com/

Is It Time For Your Senior Parents/Grandparents to Simplify Their Home Life?

2008-10-20T10:23:00.000-07:00

Do you have a parent or grandparent who is one of the 65,000+ Jackson County Oregon residents aged 50+? Population Growth for the Rogue Valley has averaged over 1.5% per year. One segment is the 50+ age group, a group which represents roughly 33% of the residents of Jackson County’s estimated 199,295 residents in 2007.

Age Characteristics (from City of Medford Comprehensive Plan)
"In 2000, the majority of cities in Jackson County had a greater percentage of residents under age 18 than over age 65, including Medford. However, Jackson County had a lower percentage of residents under age 39 (51%) than Oregon (56%), but a higher percentage of residents over age 50 (33%) than Oregon (29%). This suggests that Jackson County, including Medford, is attracting people who have retired or are soon to retire. Baby boomers (aged 45 to 64) were the fastest growing age group in all of the cities in Jackson County in the 1990s, except for Medford, Talent, and White City. Medford, Talent, and Central Point had the greatest increase in younger residents - under age 44. Medford experienced the highest growth in the County in the 5 to 17 age group, which grew by 3,627 - a 44% increase."
Information Source: 2000 Federal Census via Jackson County Comprehensive Plan, 2007Population Element

With the phenomenal Quality of Life we have here in Southern Oregon, our net migration numbers are some of the highest in the State of Oregon. Many of the 50+ group migrating to the Rogue Valley are active residents still part of the workforce drawn here for the many options available to them to fulfill outdoor interests while having their economic and health care needs met. Some of these folks are focused on the future, knowing when they reach the stage of their lives where they no longer will be living independently there are a multitude of options available to them in Southern Oregon.

There are a large variety of facilities available for those looking to move from their current home in to a home where they will receive the care they may need – from regularly housekeeping to meals to full medical care. Tools are available to help you research the quality of care in these facilities, such as Medicare’s facility inspection results and additional reports/information you may obtain by contacting the DHS or Area Agency on Aging local office and the Long-Term Care Ombudsman program at (800) 522-2602.

If part of the process associated with moving your loved one out of their home includes exploring financing options or the sale of the home, it is critical you look for professionals familiar with these transactions. For the sale of the home, you should work with a real estate broker with the Senior Real Estate Specialist designation who not only has made the effort to obtain the specific training and information for these special types of transactions, but comes highly recommended by other families they have worked with on these types of transactions.

As with all real estate transactions, surrounding yourself with the right team will make what can be a complex process a smooth one.

http://activerain.com/blogsview/553000/Living-Longer-And-Lifelong-Learning-Programs-in-Southern-Oregon

http://activerain.com/blogsview/511319/California-50-Somethings-Ready-to-Begin-Their-Steps-to-Retire

http://activerain.com/blogsview/410880/Rogue-Valley-Manors-Contribution-to-Southern-Oregon

http://localism.com/blog/or/posts/359902/Southern-Oregon-More-Than

See you out there!

Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

Can Ashland Oregon Buyers Still Get 100% Financing in October 2008?

2008-10-18T12:42:00.000-07:00

Can a home buyer looking to purchase a home in Ashland Oregon still find 100% financing? You bet! The variety of program options we have had available to us in the past are not as prevalent, but there are options available, such as the Federal VA home loan program and the USDA Guaranteed Rural Housing program.

Let's take a look at how a buyer looking to purchase a home in Ashland Oregon who meets the current income criteria shown below may successfully become a homeowner using the USDA Guaranteed Rural Housing program, using this 30 year fixed rate loan that does not require mortgage insurance.

Medford, OR MSA GUARANTEED HOUSING PROGRAM INCOME LIMITS
STATE: OREGON ------------------- A D J U S T E D I N C O M E L I M I T S --------------------
1 PERSON 2 PERSON 3 PERSON 4 PERSON 5 PERSON 6 PERSON 7 PERSON 8 PERSON*

MOD.INC-GUAR.LOAN 49550 56600 63700 70750 76400 82050 87750 93400

Say, this buyer is a family of 4 persons and is looking at an Ashland home that is selling for $280,000. This home cannot be a condominium, townhome or existing manufactured home (even if it is on land) - it needs to be a detached, single-family residence. If today's 30 year fixed interest rate on the USDA Guaranteed Rural Housing program is at 6.50%, the monthly payment would be roughly $2,070 including principal and interest and estimated homeowners insurance and property tax payments.

Not too many homes available that meet this criteria in Ashland Oregon who is struggling with a lack of affordable housing options for its citizens, but there are several available right now, like an Oak Knoll home built in 1996 near the Oak Knoll Golf course!

Since this program works outside of Medford and Central Point (doesn't work in these city limits since they are not rural), there are many more options available for the serious buyer willing to expand the area they wish to buy in.

Are you a serious buyer? Do you want to take advantage of the $7,500 tax credit you may be eligible for before it expires in July 2009? Do you want to take advantage of historically low interest rates before we all end up having to pay for the costs associated with the bailouts that I believe will eventually carry over to us all and raise interest rates? What are you waiting for!? Shut off the TV and Radio, get preapproved today, and go get your home!

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com

Documentary Transfer Tax To Help Fund Affordable Housing – Aye or Nay?

2008-10-17T15:40:00.000-07:00

It appears that in our area, our citizens may shortly be finding it necessary to address yet another attempt at getting a Documentary Transfer Tax through to help fund affordable housing. This is not the first attempt for us, and if it isn’t passed, will likely not be the last attempt. Housing prices exceed sustainable levels based on area incomes in many areas, with market forces driving out the lower income range families - and often times the working families. Having experienced both sides of this coin, both the strong needs communities have for affordable housing for their citizens and the increasing burden being passed along to the “have mores”, I must say I’m very torn over the issue

One of the cities I have lived and worked in during the past is Redondo Beach, California. This high housing cost area in Los Angeles County had a $1.10 County documentary transfer tax AND a $2.20 City documentary transfer tax. With a current median priced home of $695,000 as of August 2008, this would add $2,293.50 to a seller’s closing costs, since they are the one who typically pays this charge. Take this one step further, and if Redondo Beach had 80 homes change hands in August 2008 for a total of $55,600,000 in sales that generated $183,480 in city and county documentary transfer taxes for that month (August 2007, that number would have been 13-23% higher depending on the data source, but that’s a different topic!). That should help create a fair amount of affordable housing to help support lower income families, including senior citizens, don’t you think? I was 22 years old when I lived in Redondo Beach, and I remember afforbale housing being an issue even back then. And that was when the median priced home was a third of what it is today! I couldn’t find the current number of available homes on the City Housing Agency’s website and haven’t heard back from them yet after e-mailing the question, but if they have 1,100 families on their waiting list, however many units they have is not enough.

But, $2,293.50 is a pretty stiff bill to add to a transaction that already has several other necessary charges associated with it – escrow, title, recording, inspections, etc. – other closing costs that are already in excess of around $5,000 BEFORE this tax or commissions get added, and not including the sellers’ recurring charges.

- Does ALL the revenue from these taxes go to affordable housing?
- If $695,000 is the median, what the heck is deemed affordable?
- Is this tax waived when affordable housing is no longer able to be provided? (yeah right, but thought I’d throw the thought out there)

What say you? Which side do you weigh in on – for or against? Do you have better solutions than this funding source for affordable housing?

Oregon citizens have shown again and again they do not want this tax here. We could use some alternative ideas.

See you out there!

Karen Cooper – OR/CA Mortgage Consultant – http://www.quality4loans.com/

Rogue Valley For Sale By Owners, Want Some Free Marketing?

2008-10-15T23:13:00.000-07:00

Okay, Rogue Valley homeowners, have you decided to put your home on the market “For Sale By Owner”? There are many reasons home sellers choose to go this route when selling their home. Today, often times, the decision to go “FSBO” is made due to current market values in relation to the amount of your loan balance.

If you would like some free home seller tips and tools I’ve gathered in my 25 years in the real estate/finance industry, please contact me.

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

2008-10-11T11:49:00.000-07:00

Is it just me, or are you also getting drawn in to the panic in the masses? Part of my day now is dedicated to actively tuning out the negativity and keeping my eye on the ball. Most days, this requires minimal effort, and I just keep on running this race I'm in. Once in a while, I find that effort is so great it has me feeling tired and drained before I even step out my front door. Yesterday was one of those days.

Friday, while spending time on learning new techniques to broaden my horizons, I slipped and clicked on the DJIA report I caught out of the corner of my eye while reading another article. As with mortgage and real estate "news", to date I've had a very careful sifting process in place. Out of necessity I've developed a pretty good suit of armor to wear these past 18 months. But yesterday, drawn in to this "impossibility" of a further 10% drop in the stocks in a single day, heart dropping to my toes, before completing reading the associated article, I found myself dialing our financial advisor's phone number for the first time in a long time.

-Have we sunk our heads too far in the sand?
-Should we be joining the stampede racing to cash positions?
-Will we have time to replenish these disappearing funds before we retire and still send our child to college?
-Should we fire our financial advisor because they didn't call us in advance to recommend other strategies/positions for us?

With visions of sugar plums no longer dancing in my head, setting aside my embarrassment that I may have slipped in to an irrational moment of panic, I spent 40 minutes on the phone with our financial advisor. Mind you, Warren Buffett we are not and we don't have tremendous amounts in these accounts, but they are our retirement funds! With my husband on the backside of his 5th decade, and me watching this impending decade race up on me, we're paying much closer attention to this stuff than we have in previous recessionary periods.

The analogy our financial advisor used - over and over again - to settle me down was making our decisions whether or not to liquidate in to cash positions while "flying at an altitude of 10,000 feet". Pull ourselves up and look down on what's happening below. Do we still believe in a capitalistic system? Do we believe the companies we own shares of still have the fundamentals we seek and will at the end of the day continue to be profitable?

Like my crystal ball, our financial advisor's is just as foggy. But, they still have some skin in the game, too.

I say thank God for antibacterial ointment and Band-Aids, because I still want to play, both in the mortgage/real estate industry and in the stock market. I've always loved a good roller coaster ride!

See you at the closing table!

Karen Cooper-OR/CA Mortgage Consultant-www.Quality4Loans.com

Bailout or Toilet Plunger? What Does the Passing of L.P.T.A.P.M.A.* Mean to Us Soccer Moms and Joe Six Pack?

2008-10-06T16:15:00.000-07:00

Do you think “Bailout” is a good term to describe L.P.T.A.P.M.A.*? This very painful pill we all get to swallow seems rather enormous, even bigger than my Flaxseed Oil and Fish Oil dietary supplements. But like the reasons for taking my dietary supplements, is it necessary to keep our economy healthy?

Having grown from 4 pages to 451 pages, maybe the proposal is now powerful enough to act as a toilet plunger to help unclog our national credit toilet. Depending on which economist you check with, the US economy may or may not be in a recession. My guess is when the latest data available is reflected, the decision will become unanimous – we are in a recession.

As difficult as this pill is to swallow, and I must admit my first instinct was to say “let it ride” and see where the cards may fall, I think the “Credit Market Restructuring Plan” (much better than “Bailout”, don’t you think?) will aid the major block we’re facing in the credit markets.
-Have you noticed the zero percent balance transfer offers are drying up?
-Tried to get a no cost home equity line of credit lately?
-How about short term business financing?
The rules in the credit game have changed dramatically, and although we could debate the pros and cons of this to eternity, overall I think this correction has swung too far the other direction. Now, creditworthy solid borrowers are finding it difficult to get the funding they want.

Although the best laid plans do sometimes go awry, maybe this restructuring plan will thaw out the frozen credit markets, speeding up the necessary recovery process. Here in Southern Oregon, homes are moving again, albeit it at a snails pace. Our illustrious US representatives got our Timber Funding extended for 4 years and tax credits for the manufacturer of children’s wooden arrows, so we’re set now, right (tongue in cheek just got bitten)? Let’s get the Master Plunger and blast this clog through, and see a reasonable flow in the markets again!

*LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY TO PURCHASE MORTGAGE-RELATED ASSETS

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – http://www.quality4loans.com/

Oregon Jumbo Real Estate Loans Still Available

2008-09-29T21:44:00.000-07:00

Here it is September 29, 2008, and did you know you can still get a 30 year fixed rate Jumbo loan up to $600,000 (fully qualifying) up to 80% loan-to-value with an interest rate of 6.125% (6.253% a.p.r.)? Or, how about up to 90% loan-to-value, self-insured (lender pays for the private mortgage insurance), with an interest rate of 6.50% (6.631% a.p.r.)? For buyers purchasing or refinancing in Ashland, Jacksonville, Southwest and East Medford, and purchasing or refinancing waterfront or “gentleman farm”/mini ranch property, these higher loan amounts can come in handy.

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – http://www.quality4loans.com/

Snapshot of the Real Estate Market in Southern Oregon in September 2008

2008-09-29T14:55:00.000-07:00

With a market that is somewhat driven by what’s happening with our neighbors to the South of us in California, we have definitely seen the numbers slowing here in the Rogue Valley. When a percentage of our buyers can’t sell their property in California, it slows things down for us here in Jackson County and Josephine County Oregon.

But, guess what? It appears we may be reaching a turning point here. “Yeah, right!” you might be saying, based on all the doom and gloom reporting we are seeing in the news. Here’s why I think this:
Inventory is contracting - Inventory of Homes for sale in Jackson County Oregon, the “hub” of Southern Oregon, has contracted three consecutive months in our year over year numbers posted at www.jacstats.com - by 16% September 1st, by 14% August 1st, and 16% July 1st. Based on the number of “Sold” signs I’m seeing as I drive around town, I’m guessing there will be a further contraction for October 1st.

Sales in California Up - California Buyers, including first time buyers, are taking advantage of low prices and low interest rates there, freeing up those Sellers to make their moves. Sales overall were up July 2008 for the first time in three years. Some of those Sellers will likely be moving here to Southern Oregon, the early wave of migrant homeowners to make up the 1.7 million anticipated by Oregon’s Big Look Task Force.

Buy while we can still get a loan – This seems to be an attitude many fence sitters have adopted, prompting them to say “good enough” to one of the criteria they have that has had them adopting their wait and see stance… wait for the price bottom, wait for the lower interest. There is no doubt we’re in a Buyer’s Market here in Southern Oregon, with motivated sellers willing to make concessions for ready, willing and able buyers. There is no doubt that underwriting guidelines for home loans are getting tougher. There is no doubt that with the failure of so many banks and mortgage companies, competition is not as prevalent as it was, which Econ 101 tells me will lead to higher pricing.

Is it still tough out there? You bet! Are we still likely to face a few more bumps in the road? I think there will still be some hurdles to face in most real estate transactions that take place over the next year, especially with appraisals, tightening guidelines, and program eliminations. In my 25 years in this business, I've never seen buyers and property owners have to work so hard to obtain their financing, and that's saying a lot since I've been through 2 other major market cycles that had big dips. Is it a good time to buy? I’d get my checkbook out for the right deal, and put my money where my mouth is.

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com