Atlanta Loan Source

Finding Money for your Children's Education

Most families spend more time planning a vacation than they do in creating and following a realistic plan to fund your child's college education. 

The college funding strategy should only be one part of your overall financial plan.  If you have not started thinking about college funding for your children, then now is the time.  Have you heard of the 529 Plan?  It is one tax advantaged way to help fund your child's college education. 

In Georgia, the Hope Scholarship, a lottery funded scholarship program, is responsible for helping many students find their way through college.  Many states have similar programs. 

When is the best time to start planning? 

I am a fan of business television broadcasting and a clear benefits of this type of broadcasting is that more people understand the power of compounding growth.  Just think about what the velocity of money can do to secure your future.  It does require time, so the best time to start planning and saving for college is immediately after your child is born.  Don't forget to let the Grand Parents know that the college saving account is open and ready for their help.  How can they say no?

Get Creative and ask for advice to find college money. 

College Fund Resource, LLC is a  local company run by Karen Powell that specializes in finding creative way to send your children to college.  Karen is a true professional with years experience and she knows her business.  She offers a free workshop on "How to cut the Cost of College", and additional information on how to "Market your Athletic Skills for College Funds" and a guide to "Boost your Scholarship Strategy". 

Feel free to pass this link along to anyone you know that is looking for ways to fund their children's college education.  If you have not planned far enough ahead, it may come down to drawing money from your home and if that is the case, you know where to find me. 

Take the time to watch the video below from the Street.com TV (2:33min).

Mortgage Rates Are Not Dropping - CNBC Explains

The Federal Reserve dropped their short term Federal Funds Rate an additional .25% yesterday which brings their total adjustment of 3% since the fall of 2007.  The questions remains, why are mortgage rates not dropping in sync with the Federal Funds Rate?

click on the link below to watch a CNBC video which includes an easy to understand explanation.  Enjoy. Video title: Assessing Mortgage Rates - Making sense of mortgage rates, with CNBC's Steve Liessman.

If you have questions or comments, just ask.

Jim Hogan, The LoanSource

Federal Reserve Press Release Commentary

Included are a few exerts from the Press Release by the Federal Reserve yesterday, April 30, 2008 concerning their action to lower the Federal Funds rate by an addition .25%. If you want to read the entire press release, just click here.

• "Recent information indicates that economic activity remains weak. Household and business spending has been subdued and labor markets have softened further. Financial markets remain under considerable stress, and tight credit conditions and the deepening housing contraction are likely to weigh on economic growth over the next few quarters". 

My translation:  Yes, we are in a recession and have been for a while.

• "Although readings on core inflation have improved somewhat, energy and other commodity prices have increased, and some indicators of inflation expectations have risen in recent months".

My translation: This recession is reaching deep into everyone's pockets.

• "Still, uncertainty about the inflation outlook remains high. It will be necessary to continue to monitor inflation developments carefully".

My translation: The Fed is as confused as we are. 

• "The Committee will continue to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability".

My translation:  Just reminding everyone that it is our job to monitor economic and financial developments.  Duh!

If you have comments or questions, just let me know.

Jim Hogan, The LoanSource

The Game Has Changed

The game has changed but mortgage rates are still low and opportunities remain for those people who are prepared to take advantage of the depressed housing market and some of the lowest fixed rates in over a decade!

Are you prepared?

The Federal Reserve has been lowering the Federal Funds rate since last year, but their next scheduled meeting on April 29 – 30, 2008 is not expected to provide the same result.  The fear of inflation seems to have put the Federal Reserve in a difficult position.  They would like to spur business and commerce by lowering the Federal Funds rate again, but reports indicate that inflation has taken a strong foot hold on the US economy and by lowering rates again, they could accelerate inflation. 

According to a poll I read recently, 1 out of 3 homeowners have no idea what kind of loan they have. Under better market conditions, that might be ok. But in the current market where over 2 trillion dollars of adjustable rate mortgages are set to increase and over 2 million homeowners loosing their home due to sudden, unexpected and devastating increase in their mortgage payments, it’s imperative you know exactly what kind of loan you have. Even more importantly, when and if your loan will recast and go up.

The Game Has Changed!

• Guidelines and mortgage programs have expanded and increased… Now they are tightening and retracting.
• 100% loan to value programs are going away (or at least very limited).
• Debt-to-income ratios are getting tighter.
• Banks are not as flexible as they have been over the past five years.
• Foreclosures are going up and financially stressed homeowners need advice now, more then ever.

I am hopeful that homeowners are proactive so they can navigate a soft landing. If not, they could find themselves in situations outside their control that could lead to personal financial disaster like bankruptcy and foreclosure.

Whether you need to get cash out, pay off those high interest credit cards or consolidate your first and second mortgage into one low monthly payment, we have the fixed rate solution for you! I would be happy to talk with you and conduct a complete Equity Review of your home and Mortgage Review of your loan, FREE OF CHARGE!

Jim Hogan
Your Trusted Loan Advisor

P.S. Please pass this on to anyone know who could use the type of service I provide, Please, tell them a little about your relationship with me, then call me and I will do the rest.

Risk Based Pricing/Rates Surprises Customers as they Search for the Lowest Possible Rate

Changes to the mortgage industry continue to create confusion for those shopping for the best mortgages in the market place.  Most of the changes are coming from the largest money center banks that end up servicing the lion’s share of the nation’s mortgages through tightening underwriting guidelines.  In addition, Governments from all levels feel compelled to “do something about it” in order to protect their citizens by creating legislation that may or may not help in the long run.

What is risk based pricing?

As the true cost of the mortgage meltdown is exposed, mortgage rates are now based on the varying levels of risk to the lender.  I feel that mortgages, now more than ever have become a custom product for each specific client.  The rate offered will depend on credit scores, down payment, debt-to-income ratios, mortgage program, etc.  Just a year ago, the spread between the rates being offered to the most qualified clients and the clients with less down payment, lower credit scores and higher debt-to-income ratio’s is widening.  Your credit score can drastically affect the mortgage rate that you are offered. 

What is your credit score?

Conforming Loan adjustments:

• 720+ allows the most flexible programs and best rates with no pricing adjustments
• 680 – 719 requires up to .50 additional points that may affect the rate being offered.
• 660 – 679 required up to 1.25 additional points that will affect the rate being offered.
• 640 – 659 requires up to 1.75 additional points that will affect the rate being offered.
• 620 – 639 required up to 2.50 additional points that will affect the rate being offered. 

FHA Loan Adjustments:

• 600 +  No pricing adjustments
• 580 – 599 require .50 additional points that may affect the rate being offered
• 530 – 579 require 1.50 additional points that will affect the rate being offered
• Bellow 530 requires 3.00 additional points that will affect the rate being offered and this adjustment applies to borrowers with no credit score.

The lending game has changed and prudent planning will help secure the best possible loan in any given situation.  Create a good mortgage plan that will guarantee success.  Do not wait until the last minute. 

Jim Hogan is the LOANSOURCE and available to address your questions or concerns and extends this service offer to anyone you know that need to create a mortgage plan.  Call direct at 404-870-2348.

New FHA Loan Limits Will Help Ease the Lending Crisis

The Federal Housing Administration (FHA) has been authorized by Congress to increase their maximum loan limits.  Their increase raised the maximum base across the country and even higher for specific “High Cost” markets. 

 

The Atlanta MSA (metropolitan statistical area) new Maximum FHA Base Loan is now $346,250 and this number translate into a sales price of $354,200.  For your area, follow the link to FHA loan limit web site.

 

This new limit has created a huge opportunity for buyers who would otherwise not qualify for a purchase or refinance under the current conforming lending guidelines.

 

The lending game has changed but prudent planning will help secure the best possible loan in any given situation.  Make a decision with knowledge.  Give me a call to discuss your situation or introduce me to anyone you know who needs solid mortgage advice.  I want to be your mortgage consultant.

 

News continues to blast the mortgage industry as underwriting guidelines tighten.  In spite of a recent move by the Federal Reserve to build a foundation of confidence through offering guarantee’s to the lending industry, it will take considerable time to get back to a more normal lending environment.

 

Increased FNMA & FHLMC Loan Limits Will Solve the Mortgage Loan Crisis…or Will It?

Let’s take a look at the effects of the economic stimulus package on the mortgage industry and how it may filter down to the consumer.

 

The US Senate has passed the Economic Stimulus Package and the President is scheduled to sign it into Law which means that we are one step closer to the implementation of higher FNMA/FHLMC loan limit. As is with most laws, the written word does not dictate to the “market” how to apply these changes.

 

Uncertainties remain:

Will the entire country be allowed to move to the higher loan limits?  The method for determining which geographic area will move to the higher loan limits has not been determined.  Most consumers believe that the loan limits will be applied across the board to the entire country.  FNMA/FHLMC however are not setup to apply loan limits in that fashion.  Will they do it by state or by Metropolitan Statistical Area (MSA)?

 

Product and Program Variety:

It has not been determined which products and/or programs will be available for the increased loan amounts.  Will it be for 30 year and 15 year fixed rates loans only?  Will investor properties be included?  Can “Expanded Approval” or “Flex” product loans become eligible even though they carry higher risk?

 

Pricing and Delivery:

Pricing and delivery is another missing piece of the puzzle.…(Warning, behind the scenes mortgage content included here)  In the mortgage industry, the loan pricing dictates the wholesale rates and the delivery refers to the method that the Mortgage Backed Securities (MBS) are pooled and sold on Wall Street to the public. 

 

The Securities Industry and Financial Markets Association (SIFMA), not HUD or FNMA/FHLMC, decides which loans are eligible to go into the FNMA MBS’s.  Blending the old and the new models will create a great deal of uncertainty in the marketplace and this alone will affect pricing and rates.  Even though we do not know how much of a premium will be applied to the new loans, it should be a significant improvement over the current 30-year jumbo rates. 

 

Stay tuned as our free market economy figures out how to adjust to the new FNMA & FHLMC Loan limits and what effect it will have at the consumer level.

 

Buying a foreclosure property using the FHA 203-K Renovation loan…a Match made to Order!

Atlanta, GA. -- Foreclosure’s are on the rise and there are huge opportunities for home buyers who are interested in buying real estate at bargain prices. Opportunities yes, but they come with their own set of problems and risks. 
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The Problem:XXXXX

Most foreclosed properties are not in the best of shape
Most foreclosed properties require extensive repairs and renovation
Most buyers today do not have the cash available to renovate
Most lenders will not lend on properties that require extensive repairs until the work is complete.
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What is a buyer going to do?
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To the Rescue…The Department of Housing and Urban Development offers a home loan through the Federal Housing Administration Called the 203-K loan. The “K Loan” allows a buyer to purchase a home, allows them to roll the cost of renovation into the loan and if the renovations require that the owner vacate the home, the borrower may finance up to 6 months of payments. 

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The final base loan amount must remains under the FHA loan limit for the county in which it is located. In the Atlanta MSA (Metropolitan Statistical Area) has a loan limit of $252,890 for a single family home, $284,834 for a two-family home, $346,060 for a three-family home or $399,300 for a four-family home. If you are not sure of your counties loan limit, go to the FHA Loan Limits web site, choose your state and review the list for your loan limit.
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The property does not have to be a foreclosed property; in fact, it could be a home that the borrower would like to update the kitchen or bathrooms, maybe some paint, new appliances or new carpet. You could use this loan program to add a room or a 2^nd floor to the home. The borrower can use this loan program as a refinance and fund home improvements. The “K Loan” is a great loan for renovations, so if you are thinking about a renovation or know of someone who might need a loan product like this, just call or e-mail Jim Hogan, the LoanSource. 
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Jim Hogan is with Opteum Mortgage and is an FHA 203-K Renovation loan expert. You can contact him at jhogan@opteum.com or 404-240-2348.

Notework Your Way to Success…and Into Your Customer’s Hearts

Are you looking for a simple system that will differentiate you from all of your competition? You will be remembered if you follow the Noteworking Success System ™, a simple system  that will reap big rewards.  The key word here is system…a planned, repeatable event that is designed to generate a desired outcome. 

Take a few minutes to learn the secret directly from the President and Founder of Profits in Progress, Vanessa Lowry, who developed this money making system. 

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Find your way to your customers hearts, be remembered, be re-markable, learn how to add personal notes to your current marketing plan.   Visit www.profitsinprogress.com or call Vanessa Lowry to find out more.

Your Partner in Success,

Jim

Don't Believe everything the News Media it Saying About the Mortgage Industry

There is ample money available for those looking for a Mortgage Loan

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The Mortgage Industry is continuing to experience unprecedented change and that is a good thing.  Why?

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1) Mortgage Lender and Brokers are exiting the business in record numbers which leaves the professionals available to help those searching for a competent consultant.

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2) The news media has been largely inaccurate in reporting the availability of mortgage credit.  Actually, there is ample supply of mortgage money available for the traditional borrower.  The difference is that if you are in search of a solution to your mortgage needs, you need to plan ahead.  What a concept! 

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3) Numerous borrowers have been left at the closing table as lenders close their doors.  The good news is that the majority of these borrowers were able to find another lender to close their loan quickly.

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What do you think?  Have you been having trouble finding money?

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Your Friend in the Mortgage Business,

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Jim