Real Estate Strategies for Minnesota

It’s interesting to see how many expensive full−page real estate ads featuring homes and agents in any newspaper fully miss the
golden opportunity to go beyond the basic marketing effort. By offering a simple line of text to capture the attention of the
reader, the results from the ad would yield stronger results, maximizing the effectiveness of the investment.
Major franchises spend thousands of dollars on full color pages featuring the photos of agents, their production volume,
sprinkled with a few select housing opportunities. The costs of these major print media extravaganzas have continued to be
high and remain impossible to track direct business leads from. This traditional format probably will not end anytime soon,
however, the effectiveness and profitability factors will soon be hard to ignore as the baby boomers children come of buying
age…and go to the Internet before reading a newspaper.
So, why don’t our newspaper ads offer a compelling reason to go to our websites for service and information? In many cases
the only attempt to offer web information is a solitary URL under the company’s name and phone number. Although this is a
step in the right direction, it is often not inviting or enticing enough to prompt a reason to visit the website.
Today’s Internet empowered consumer is seeking information on their own terms, and when they want it, to get truly valuable
information specifically related to what they actually need at the moment…risk free! This is the key and only the first step to
driving activity to your website.
Capturing the actual lead, servicing the request, and using electronic follow up to maintain the relationship by offering
value−added services and information is the secret to making any printed collateral marketing or advertising programs. This is
the difference between spending a ton of money for “exposure” and translating exposure to solid prospecting opportunities.
This first step directs the prospect to your website whether the prospect is currently interested in listing or selling property.
Incorporating a unique option for information or a report that virtually anyone would find interesting makes the investment of a
printed ad, classified or otherwise, so much more valuable. We are still compelled to use traditional marketing, like ads and
direct mail, to please our customers and clients and to span the gaps between those individuals using the Web and those that
still migrate to a newspaper or magazine. The powerful difference is to offer additional information that invites the prospect or
viewer to more choices that may better suit their needs for wherever they are in the decision making process.
Offering reports like, “The 5 top ways to improve your property”, or “The 6 steps to increasing value through home
improvements”, would appeal to a spectrum of viewers, even if, at that moment, they were not in the immediate market to buy
or sell.
Once the viewer arrives at your office on the Web, the second step keeps them there to secure the myriad of additional services
and information. It is at this point that a well designed web presence can turn viewers into real leads and, finally, a
money−making experience. Your web must be equipped with a tool that will capture the prospect’s e−mail address to begin
building customer service and eventually secure a client for life. Your website should be functioning as a virtual 24−hour office
assistant working as a full−time prospecting tool. By directing prospects to your website from your printed marketing materials,
you truly begin purposeful prospecting while meeting and exceeding the new 21st century consumer requirements. Many
agents have websites, but, sadly, there are only a few really performing in a way that produces profit and service.
Check out websites that offer back end services or work stations. If you already have a website and are looking for this
additional service, check out the new product, wwwMyPro.com, which comes from the iProCenter.com Company. They have
designed a back−end web solution that “snaps” on to your present web presence to enhance and organize your communications.

Steve Hoogenakker, Showcase Landscape, MHA, CAI Minnesota, CICMidwest, MNLA, Delano Minnesota, Teri Hoogenakker is the BEST

Homes and Money Newsletter December 2005

Mortgage News
Real Estate Will Continue to Boom Despite Naysayer Claims

Table of Contents
Mortgage News
The Money Pit
Creative Cuisine
Street Smarts
Rates at a Glance
Did You Know?
Quote of the Day
Special Offer
Trivia Challenge
Book Review


Rates at a Glance

30-Year Fixed Mid 5's
15-Year Fixed Low 5's
7-Year Fixed* Low 5's
5-Year Fixed* Low 5's
3-Year Fixed* High 4's
T-Bill ARM
(Index: 3.680) High 4's
COFI ARM
(Index: 2.620) Low 5's
MTA ARM
(Index: 2.737) High 4's

The interest rates represented here are at one point.

*Amortized over a 30-Year period. Following its Fixed term, it converts to a 1-Year Treasury Bill Adjustable Rate mortgage for the remaining term of the 30-Year loan.


Did You Know?


Bruce Springsteen's
Born In The USA album was the first commercially released CD that was actually made in America.

Quote of the Day
"Never give up, for that is just the place and time the tide will turn."


-Harriet Beecher Stowe

Special Offer



Book Review
Are You Missing the Real Estate Boom?
by David Lereah

In his latest book, economist David Lereah provides insights into the thriving real estate market and advises consumers who wish to take part. Whether you are a first-time buyer or looking to invest in a second home, Lereah offers detailed information about every aspect. From sizing up local housing markets to financial planning and even home improvement, he leaves no stone unturned.

You can find this great book on Amazon.com. Enjoy!


Thank You!
As always, we wish to thank our clients who have been kind enough to refer business to us. We appreciate the opportunity to provide excellent service to your family, friends, and co-workers.




In recent years, it's impossible to turn on the television or read the headlines without seeing a warning of impending doom. The media claims that the housing bubble is growing too big, and it's about to burst! This pessimism has sold a lot of news stories, but it has also created many false concerns for first-time and move-up home buyers as well as investors. We keep hearing about this horrible catastrophe, yet the real estate market continues to boom. Why is that? Because the media neglected to consider one very important factor that is driving our current economic recovery: demographics.

The real estate boom began when mortgage interest rates fell into the single digits, making housing much more affordable. While this certainly contributed to home sales, there are additional causes we can isolate. Dr. David Lereah is a best-selling author and the Chief Economist for the National Association of REALTORS® (NAR). In a recent interview, Dr. Lereah revealed, "The biggest factor that affects real estate today, and has made it immune to some cyclical changes in the economy, has been demographics."
The most significant and frequently mentioned demographic is the "Baby Boom" generation, which refers to children born in the years following World War II. Economic forecasting expert and author, Harry Dent, has written extensively about how property buying habits occur in a predictable fashion as a generation ages. From needing an apartment in college, to buying a starter home and eventually trading up to something larger, it is all cyclical. Since the Baby Boom generation is the largest so far, their impact has been far greater than the generations that preceded them.

Now that Boomers have moved into their top earning years, they continue to push the housing market to new levels. They are purchasing larger primary residences as well as vacation homes and investment properties. The statistics for 2004 reflect this trend, with 36% of home sales going toward second homes and 23% of sales going toward investment properties.

Demographic trends don't end there:
• Immigration - There has been a large influx of immigrants over the past three decades. According to Lereah, it typically takes at least a generation for immigrants to become fully active in the home buying market.
• Children of Baby Boomers - This generation is now in their twenties and looking to purchase their first homes.
• Retirees - While the demand for housing is expanding, the supply is decreasing. With advancements in medicine and treatments of disease, retirees are living longer. This means that they are occupying their homes for more years, which decreases the supply of homes available for purchase.
In addition to the demographic factors listed above, real estate has been a rewarding investment. Stocks and bonds have not performed as well as investors were used to, while real estate has exceeded expectations. In an uncertain world, people are more comfortable investing their money in property which will appreciate.

So if the current boom can primarily be explained by the factors we just discussed, how do we know whether it will continue?

Dr. Lereah says, "We are in the Golden Age of Real Estate." Even if the economy should slow and interest rates increase slightly in the coming years, the demand for houses is still strong. The biggest impact that such a change would have is to decrease the rate of price appreciation. While this may sound ominous, it really isn't.

The media likes to refer to the real estate boom in terms of bubbles and balloons. In keeping with that analogy, Lereah indicates that local markets may react to higher interest rates by letting some air out of the balloon. The double digit price appreciation we've been experiencing could decrease over the next year or two to a more typical 4-6% range. This is still a higher rate of return than found in the stock market, all things considered.

So if you are looking to purchase a second home or investment property, where might be a good location to focus your attention? Ideally, where the Baby Boomers are planning to retire. The demand for housing in these areas continues to grow. Over the past year, some of the highest price appreciation took place in the resort areas of Florida.

The next time you turn on the television or read the headlines, be secure in the knowledge that the sky is not falling.

Additional Resources:
Are You Missing the Real Estate Boom?: Why Home Values and Other Real Estate Investments Will Climb Through The End of The Decade - And How to Profit From Them - by Dr. David Lereah

If you'd like to receive a FREE 26-minute audio interview with David Lereah, call us today at 763-213-2410!


If you know anyone who is looking to buy, sell or refinance a home, please forward their name and telephone number to us. We will happily provide the same high level of service that we have provided to you. The greatest compliment you could possibly give us is the referral of your friends and family.



The Money Pit


Creative Cuisine

Ingredients:
2 cups sugar
3 Tbsp. Hersey®'s cocoa
1 cup milk
1 Tsp. vanilla
1 Tbsp. butter
2 heaping Tbsp. smooth or chunky peanut butter (Optional!)

Directions:
Prepare a cereal-sized bowl by greasing it with a small amount of butter. Set aside. In a medium pot, combine sugar, milk, and cocoa. Stir continuously over medium flame until mixture reaches "soft ball stage." (235°–240°F on a candy thermometer.) If you don't have a thermometer, place a small drop of mixture into a cup of cold water. If it forms a soft ball, it's ready for the next stage. Turn burner down to a low flame. Add butter, vanilla, and the peanut butter (if desired). Stir mixture until it begins to harden. Remove from burner, and pour into the greased bowl. Place in fridge to harden and enjoy!


Street Smarts
Spammers are Phishing for You: How to Identify Fake Emails
Spam is the virtual junk mail that clogs your in box each day. Some of these emails are easy to spot, with their promises of discount prescriptions, miracle investments, and "dating" offers that could make Hugh Hefner blush. Others are more dangerous, appearing to come from legitimate banks, credit card companies, or internet service providers. This type of scam is known as "phishing" and often fools consumers into giving out passwords, credit card numbers, and other sensitive information. How can you protect yourself? Watch out for these warning signs:
The salutation is generic. If the message opens with Dear valued member or something similar, rather than your full name, it could be a fake email.
Typos and misspellings. If the email has obvious errors, it is not legitimate. By misspelling or leaving out words, these messages are less likely to be caught by spam filters.
It's urgent that you take action immediately! By threatening dire consequences if you don't respond right away, spammers are hoping you won't take the time to examine the email and discover that it is fraudulent.
Click this link to update your information. Links included in spam do not always take you to the site they claim they will. Frequently the address is very close to that of a real site but is missing a letter or has a hyphen inserted. (For example, www.micosoft.com or www.verify-microsoft.com) If you are using Outlook, you can place your pointer over the link and a window will pop up, revealing the actual website address that the link will open.
The safest way to protect yourself is to view incoming email as you would a telephone solicitation. Don't believe everything you hear, protect your financial information, and be selective when giving out your email address.




This newsletter is published quarterly by Steve Hoogenakker at MrHomeLoan / ATM mortgage. Feel free to share it with your family, friends, and co-workers.

Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included.
The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.
About the Author
Steve Hoogenakker
ATM Home Loan - MrHomeLoan
Phone: 763-213-2410
Fax: 763-546-1812
steve@MrHomeLoan.com
http://www.MrHomeLoan.com www.loantoolbox.com

The ART of home purchasing negotiations

Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included.
The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.
About the Author
Steve Hoogenakker
ATM Home Loan - MrHomeLoan
Phone: 763-213-2410
Fax: 763-546-1812
steve@MrHomeLoan.com
http://www.MrHomeLoan.com www.loantoolbox.com

Home Purchase Negotiation Strategies & Secrets

Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included.
The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.
About the Author
Steve Hoogenakker
ATM Home Loan - MrHomeLoan
Phone: 763-213-2410
Fax: 763-546-1812
steve@MrHomeLoan.com
http://www.MrHomeLoan.com www.loantoolbox.com

Credit Tips that will score lower interest rates

Credit Tips That Will Score Lower Interest Rates
A good credit score translates into lower interest rates for home-shopping borrowers. In a mortgage lender's eyes, the higher your score is, the less risk you are, and the more likely it is you will pay off your debt. For this reason, borrowers with lower scores usually end up paying higher interest rates on their loans.If this is you, don't panic. There are a number of things you can do to adjust your credit score to receive a favorable review from the underwriter. Here are a few suggestions:Should I pay off all my past due balances and charge-offs?
This is usually a good idea, but you only need to worry about the past due balances and charge-offs that have occurred in the last two years. Items more than two years old have little effect on your current credit score. In fact, if you pay off delinquent items over two years old, it can actually bring your credit score down - something you don't want to do. Bringing that score up means you'll get a better interest rate on your loan.
Should I close existing credit card accounts that I don't use?No. Part of your credit score is based upon credit history. If you have old credit cards that you don't use very much, you still have the benefit of the credit history they represent.Rather than trying to pay off all your credit cards, you can move part of the debt from one card to another to even out the distribution of debt. Try to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home. Also, if your credit provider will increase your line of credit, the ratio of debt to available credit is automatically reduced.When married couples have separate credit card accounts, the debt can be transferred from one spouse to another to clear up credit issues for the other spouse. That spouse with clean credit can be designated as the sole borrower on the loan, but ownership of the home can still go in both names.What about errors on my credit report?If you have items that are showing up on your credit report that you know you have already paid, request that these items be removed by the credit bureau. They are obligated to rectify this within 30 days.If there are items on your credit report that are less than two years old, send in your payment if possible and mark the back of the check with the following notation: "Accepting this check is evidence that the transaction is complete and this charge will be deleted from my credit record." If necessary, the cancelled check will be proof that this should be promptly removed from your credit report if it interferes with the closing of your loan.
Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.About the Author
Steve Hoogenakker ATM Home Loan - MrHomeLoan Phone: 763-213-2410Fax: 763-546-1812 steve@MrHomeLoan.comhttp://www.MrHomeLoan.com www.loantoolbox.com

What Lenders Look for in Home Loan Applications

Steve Hoogenakker ATM Mortgage - MrHomeLoan Phone: 763-213-2410Fax: 763-546-1812 steve@MrHomeLoan.comhttp://www.MrHomeLoan.com
Keep More of What You Make in Real Estate
Practically all investment property has appreciated over the last few years. If you're planning on selling yours, keep more of your profit by using a 1031 exchange. It allows you to defer taxes due on the money you've made by rolling your proceeds into property of equal or greater value within 135 days. You can't do this with your primary home, but you can utilize it for that investment condo that you're going to rent out.The key is hiring a "qualified intermediary," a Q.I. to deal with the money until it is reinvested. If you handle the yield yourself, you'll lose the tax advantages. Choose a Q.I. who is bonded and insured for negligence and fraud. You can find one by visiting www.1031.org or by consulting your accountant. Your CPA can also assist you with sidestepping tricky depreciation issues.
Consider a Fixed Rate Mortgage
The recent real estate boom was fueled by low interest rates. Many homebuyers took advantage of the Federal Reserve's aggressive monetary policy by getting variable rate mortgages at very low interest. These borrowers are now watching with dismay as the inflation worried Fed continues to raise its federal funds rate with no end in sight. However, an opportunity for mortgage holders is developing.In 2005, the Dow Jones Average finished the year with a loss. As investors turned their backs on stocks and moved into bonds, securities yields dropped in the face of increased demand. This has led to an unusual situation. The interest on adjustable rate mortgages, dependent on the rate set by the Federal Reserve, has risen, while interest on fixed rate mortgages, backed by mortgage-backed securities, has fallen. This paradox is called an inverted yield curve. For many mortgage holders it makes sense to lock in a guaranteed payment on a fixed mortgage instead of coping with the uncertainty of an adjustable rate loan. Call us to review your current mortgage program and discuss potential refinancing opportunities.
Conforming Loan Limit Raised
Since Fannie Mae and Freddie Mac dominate the market, they have a major hand in setting mortgage rates. Specifically, they determine the ceilings for what they consider to be conforming loans. Because Fannie Mae and Freddie Mac only buy conforming loans to repackage into the secondary market, the demand for larger loans is far less. As a result, these jumbo loans typically have a higher interest rate.Each year the conforming loan limits are raised, reflecting the rise in the median cost of housing in the US. For 2006, in the contiguous 48 states, the new cut off has been set at $417,000 for a single unit home. Fanny Mae predicts that nearly half a million additional homeowners can now save on their mortgages with the redefined loan ceiling. This is more than good news for new home buyers. This is a great opportunity to see how much interest you can now save by consolidating previously borrowed "piggy back" or home equity loans.
Rely on a Solid Team
It has become more important than ever to depend upon reputable mortgage professionals. The booming real estate market has led to a dramatic increase in the volume of loans, enabling an increasing number of loan professionals to assist consumers with their financing needs. Unfortunately, not all of these individuals are scrupulous, which ultimately results in higher costs for everyone. Half of all defaulted loans and 25% of all foreclosures are thought to have been obtained through misrepresentation.State regulators are planning to create a national registry of mortgage officers who play fast and loose. Also, Digital Risk is developing a computerized database search system to accurately profile applicant income. With the FBI's financial crimes investigation team increasingly on the prowl, it's important to rely upon quality financial advisors who will provide you with the best possible options and steer you clear of any whiff of fraud.If you or someone you know is in need of financing assistance, please be sure to contact us. We’ll be sure that you obtain the guidance you need.

This newsletter is published quarterly by Steve Hoogenakker at ATM Mortgage - MrHomeLoan . Feel free to share it with your family, friends, and coworkers. If you did not receive this newsletter directly, and would like to be added to my distribution list, please send an email to steve@MrHomeLoan.com with "ADD" as the subject

Understanding the Home Appraisal Process

Understanding the Home Appraisal Process
Consumers are often baffled by the home appraisal process. They may feel their home is worth a certain dollar amount, and therefore, the appraised value doesn't make sense to them. It is important to know that appraisal guidelines are dictated by the lenders. In many states, the lenders must disclose the purpose of the appraisal, as each situation carries its own set of rules.

In essence, lender guidelines force appraisers to put a fair market value on a home based upon comparable sales in the area where the home is located, as the home must be bracketed according to size and value. For example, there is no set amount associated with a great view, pool, spa, bathroom upgrades, etc. If a homeowner installs a custom pool that cost them $30,000, and the local marketplace supports the value of a pool at $15,000, that item will be bracketed as [$15,000] on the appraisal.

Upgrades can usually be expressed at full value in newer homes since they required investing additional money onto the cost of building the home. On the other hand, the amount invested in upgrading or remodeling an older home is rarely reflected in full in the final appraisal. The reason is the home had value in its original condition, and again, the value of the upgrades must be supported by comparable examples within the same marketplace.

These comparisons must be drawn from current market activity within the last six months. Some lenders may want to look at both closed and pending sales to see if there is any room for negotiation. This is a safeguard to prevent appraisers from over-valuing the home in question. It is further stated in the guidelines that appraisers can only place a value on homes that have closed escrow. However, when property values rapidly increase within a marketplace, appraisers are generally permitted to make concessions and put more weight on the evidence provided by comparisons to pending sales and listings. This allows for a "real time" appraisal.

Although there is no formal standard to speak of, most lenders give the appraiser a 5% margin of error. If the file is reviewed and the appraiser is off by 8%, there is a good chance the value will be cut by the full 8%. It is in the best interest of both the appraiser and the homeowner not to push the value up higher than the market will support, otherwise the property evaluation may be exposed to a strict appraisal review.

As a loan executive, I make it a point to follow lender guidelines at all times, and work within the systems they provide. This promotes a good relationship with the lender, and smooth closure for my borrowers. As always, you are welcome to contact me if you have any questions.
Call me directly for a free consultation.





Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included.

Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.
More Articles available at:
Steve Hoogenakker
ATM Mortgage - MrHomeLoan
Phone: 763-213-2410
Fax: 763-546-1812
steve@MrHomeLoan.com
http://www.MrHomeLoan.com
LoanToolbox www.loantoolbox.com

Practical Tips for Financial Freedom - Plan in place

Do You Have a Disaster Plan In Place?

After Hurricane Katrina struck, it was quite difficult for individuals to find their families and reassure them that they were okay. Regardless of where you live, emergency situations could arise at any time. It's important to have a disaster plan in place.

Because local phone lines may be jammed, select an out-of-town relative or friend to be your point of contact. Be sure that each family member has this person's name, phone number, and either a prepaid phone card or appropriate change in their wallet or backpack at all times. Also, select two potential meeting places where your family could gather. One should be in the vicinity of your home, for emergencies such as a fire. The other should be somewhere other than your neighborhood, in the event that it is no longer accessible. If you would like to obtain additional information about disaster planning, visit www.redcross.org.

Remodeling? Stay On Budget

One of the most common complaints about remodeling is that it always ends up costing much more than originally estimated. How can you avoid this fate? Set realistic expectations. Remodeling expert, Dan Fritschen, recommends taking the project estimate you receive from your contractor and mentally adding 20% to the bottom line. This should cover the unexpected expenses that will arise. Decide what you want before work has begun. While contractors are happy to accommodate changes midstream, the costs for such modifications add up quickly. Also, purchase some materials in advance, when they are on sale. Items such as faucets, door knobs, and cabinet pulls can be bought before the remodel even begins. Lastly, be sure to consult with your mortgage originator and tax professional prior to beginning construction to ensure that all financing and tax write-offs are in order. For more money-saving suggestions, check out www.remodelormove.com!

Helping In The Aftermath of Hurricane Katrina

Hurricane Katrina devastated the Gulf Coast, and citizens everywhere are trying to find ways to help those in need. If you can afford it, making a financial contribution to an established charity is a good place to start. Beware of telephone and email solicitations. Scam artists are already at work, taking advantage of people's good will. Learn more about charitable giving at www.charitynavigator.org. (Remember, charitable donations are tax deductible!)

If you are interested in contributing more than money, there are several options available to you. Visit www.craigslist.org, and click on New Orleans to see how you can assist with the relief effort. You may also want to visit the Craig's List city closest to you, or check your local paper, to find out what volunteer opportunities and events are taking place in your area. You could also coordinate your own fundraiser for a chosen charity. Recruit neighbors or co-workers and have a bake sale or a car wash. Blood donations are always needed; contact your local Red Cross chapter to schedule an appointment.
Teaching Your College Student Money Management 101

Each year, millions of young Americans go off to college with a shiny credit card and a new sense of freedom. Unfortunately, this isn't always the best combination. According to the L.A. Times, between college loans and credit card debt, the average student owes $18,000 by the time graduation rolls around. Here are some ways to achieve a better outcome:
• Discuss a monthly budget which incorporates living expenses, beyond books and tuition. Establish what you will be paying for and what you expect your child to cover.
• Provide the money each month rather than paying for a whole semester's expenses at the beginning of the term.
• If you give your student a credit card, consider adding them onto your account so that you can monitor the charges. Or if they obtain a student credit card, be sure that the limit is low, perhaps $500.
• Encourage them to buy their books used. Online retailers like Half.com are typically much cheaper than the college bookstore.





This newsletter is published quarterly by Steve Hoogenakker at MrHomeLoan / ATM mortgage. Feel free to share it with your family, friends, and coworkers. If you did not receive this newsletter directly, and would like to be added to my distribution list, please send an email to steve@MrHomeLoan.com with "ADD" as the subject. To be removed from this list, send an email to steve@MrHomeLoan.com with "REMOVE" as the subject.

Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included.

Disclaimer: We cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.



More Articles available at:
Steve Hoogenakker
ATM Mortgage - MrHomeLoan
Phone: 763-213-2410
Fax: 763-546-1812
steve@MrHomeLoan.com
http://www.MrHomeLoan.com
LoanToolbox www.loantoolbox.com

Interest Rates, When is the Best Time to Lock?

Interest RatesWhen is the Best Time to Lock?

I always advise my clients to lock in their interest rate at the earliest opportunity. Gambling with a client's interest rate is never advisable. In my business, I have a standardized system in place that we adhere to for all of our clientele. A mortgage loan cannot be closed without locking in a rate, and there are three main elements to take into consideration:• Interest Rate • Points • Length of the lock Locking in on a rate does not obligate the client to commit to the loan until the loan is actually closed. The lock simply eliminates any risk of the borrower being exposed to market volatility. It provides the security of having time to complete the mortgage and Real Estate transactions with some sense of order. The lender must disburse funds to complete the transaction within the rate-lock period, or else the original commitment to provide a loan at a certain interest rate will expire. When a lender permits an extended lock-in period, the borrower will usually see either a higher interest rate or more points associated with the loan. The lender does this to minimize their own exposure to market volatility; hence the borrower pays for the lender to take on this risk. For example, a 30-day rate lock commitment may cost the consumer one-half point, while a 60-day rate lock commitment could cost 1 full point. If the borrower needed an extended lock period, but did not want to pay points, the lender could make up the difference in the interest rate. In this case, typically, a 60-day lock would have a higher interest rate than a 30-day lock. In my business, our standard procedure is to lock in a rate as quickly as possible once we have received the loan application. My team and I let our clients know that while interest rates fluctuate daily, most lenders do not want to lose any business. We know that in many cases, if there is a significant rally in the market that causes interest rates to drop .25% or more, we can ask the lender to renegotiate the rate. or understand that we will take the loan to another lender. Often the lender allows for a renegotiation of the rate to avoid losing the loan to another lender. If we allow our clients to sit on the fence and not lock in a rate quickly, we would leave them exposed to market volatility. Then, if rates do increase, the borrower may be unable to qualify for the loan they want, which is a situation we try to avoid at all costs. By knowing our clients' needs and working intimately with them to make the right decisions, my team and I are proud to say that we have many clients who are raving fans.
Professional Strategies to make Realtors more successful. Paid by Steve Hoogenakker for Realtor partners. My way of saying Thank You for your business.


Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included. Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.More Articles available at:
Steve Hoogenakker ATM Mortgage - MrHomeLoan Phone: 763-213-2410Fax: 763-546-1812 steve@MrHomeLoan.com http://www.MrHomeLoan.com
LoanToolbox www.loantoolbox.com

Credit Tips that will score lower interest rates

Credit Tips That Will Score Lower Interest Rates
A good credit score translates into lower interest rates for home-shopping borrowers. In a mortgage lender's eyes, the higher your score is, the less risk you are, and the more likely it is you will pay off your debt. For this reason, borrowers with lower scores usually end up paying higher interest rates on their loans.If this is you, don't panic. There are a number of things you can do to adjust your credit score to receive a favorable review from the underwriter. Here are a few suggestions:Should I pay off all my past due balances and charge-offs?
This is usually a good idea, but you only need to worry about the past due balances and charge-offs that have occurred in the last two years. Items more than two years old have little effect on your current credit score. In fact, if you pay off delinquent items over two years old, it can actually bring your credit score down - something you don't want to do. Bringing that score up means you'll get a better interest rate on your loan.
Should I close existing credit card accounts that I don't use?No. Part of your credit score is based upon credit history. If you have old credit cards that you don't use very much, you still have the benefit of the credit history they represent.Rather than trying to pay off all your credit cards, you can move part of the debt from one card to another to even out the distribution of debt. Try to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home. Also, if your credit provider will increase your line of credit, the ratio of debt to available credit is automatically reduced.When married couples have separate credit card accounts, the debt can be transferred from one spouse to another to clear up credit issues for the other spouse. That spouse with clean credit can be designated as the sole borrower on the loan, but ownership of the home can still go in both names.What about errors on my credit report?If you have items that are showing up on your credit report that you know you have already paid, request that these items be removed by the credit bureau. They are obligated to rectify this within 30 days.If there are items on your credit report that are less than two years old, send in your payment if possible and mark the back of the check with the following notation: "Accepting this check is evidence that the transaction is complete and this charge will be deleted from my credit record." If necessary, the cancelled check will be proof that this should be promptly removed from your credit report if it interferes with the closing of your loan.
Call me directly for a free consultation.

Steve Hoogenakker ATM Home Loan - MrHomeLoan Phone: 763-213-2410 Fax: 763-546-1812 steve@MrHomeLoan.com http://www.mrhomeloan.com/
Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included. Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.About the Author

Stop Paying Your Landlord's Mortgage!
It's staggering when you think about the cost of living, especially if you're a renter and not a home owner. If you are currently paying $1,000 a month for rented housing, then over the next three years, your property management company will effectively have reaped $36,000 of your hard earned cash! You're paying their mortgage when you could be building equity in your own property.What if I don't have the money to buy a home right now?There are many loan programs available that offer low and no down payment options. Some programs permit gift money as a down payment, and often sellers are willing to make a contribution to your purchase if they want to sell the home quickly.There are many benefits of home ownership to consider, most of all, tax deductions. Let's take a look at how advantageous this can be as a homeowner:How much is tax deductible?Tax deductions vary, but the IRS has laid out solid rules. They also have several tax publications full of helpful information worth taking the time to read. Publication 530, Tax Information for First-Time Homeowners, is very thorough, as is Publication 936, Home Mortgage Interest Deduction. For quick reference, you can refer to Tax Topics 505, Interest Expense, and 504, Home Mortgage Points.These publications often refer to local and state guidelines, so you may want to consult a CPA to answer all the questions that arise from reading these materials. Here are a few tips you should know up front:Real Estate taxes are deductible on a primary residence. Real Estate taxes are paid at settlement or closing, or through an escrow account.Mortgage interest is deductible on a loan to purchase, build or improve your home. Your lender will provide you with a Mortgage Interest Statement (Form 1098) to list the total interest paid during the year. This should include any deductible points paid for that year.Pre-paid interest is deductible in the year it is paid. At the close of a real estate transaction, borrowers usually pay for the interest on their loan that falls between the closing period and the first of the next month. Mortgage payments are made "in arrears" so when a loan is closed mid-month, there is interest due to the new lender which must be paid in advance.If you are building a home, the interest on the construction loan is deductible. The construction period cannot exceed 24 months prior to the date that you move in if you claim this as your primary residence.
Call me to discuss your specific needs and we'll find the program that's right for you.We have a variety of low down payment and no down payment programs available.
Steve Hoogenakker PresidentATM Home Loan - MrHomeLoan Phone: 763-213-2410Fax: 763-546-1812 steve@MrHomeLoan.com http://www.MrHomeLoan.com

Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included. Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.About the Author
Steve Hoogenakker provides a solid, common sense approach to solving problems and answering questions relating to consumer loan products. His website seeks to provide free online resources for the consumer, including rate-watch, tips and articles, financial communication, news, and links to products and services. Visit: www.MrHomeLoan.com, or you can email Steve at Steve@MrHomeLoan.com
Steve Hoogenakker 5820 74th Avenue N. #100 Brooklyn Park, MN 55443 763-546-1414

Why Refinance back into a 30 year loan

Why Refinance Back into a 30-Year Loan?
Refinance Your Mortgage for Rate and Payment Reductions
By Steve Hoogenakker – President
ATM Financial Services – MrHomeLoan.com
Minneapolis, Minnesota – One of the biggest reasons homeowners refinance their mortgage is to obtain a lower interest rate and lower monthly payments. By refinancing, the borrower pays off their existing mortgage and replaces it with a new one. This can often be accomplished with a no-points no-fees loan program, which essentially means at “no cost” to the borrower.
In the no-points no-fees scenario, the mortgage consultant uses rebate monies paid by the lender to pay off non-recurring closing costs for the borrower. These are “one time” fees such as escrow or attorney fees, title insurance, document preparation, tax service, flood certification, processing and underwriting fees, etc. The borrower is still responsible for recurring fees such as interim insurance, property taxes or insurance policy payments.
Refinancing typically occurs when mortgage interest rates drop significantly, but borrowers with recently improved credit scores (from paying off credit card debt, making mortgage payments on time, etc.) are often candidates for better interest rates as well. If you haven’t checked your credit score in a while, it’s a good time to call a mortgage consultant.
The question most asked is, “But why should I go back into a 30-year loan?”
There are two schools of thought on this subject, and the mortgage consultant should work hand-in-hand with the borrower’s financial planner to determine what works best for their mutual client.
One option is to take the route of the “same payment” refinance, and actually pay off the loan faster and save money on interest fees in the long-run. If refinancing results in a lower monthly payment, the borrower can still continue making the same payment they made in the original loan, and the extra money will be applied to the principal balance.

For example: Let’s say you have 25 years remaining in your current loan, and you refinance back to a 30-year loan with a slightly lower interest rate, resulting in a payment reduction of $200 per month. (Note: This is just an example. The actual amount could vary.) You could then take that extra $200 per month and apply it toward the principal on the new loan. At this rate, the loan will be paid off in 22 years and 4 months, which is 2 years and 8 months less than the original loan.

On the other hand, if the borrower’s financial planner is a proponent of best-selling author and investment guru Douglas Andrew’s philosophies (see Missed Fortune), he or she may suggest investing the extra money in a side-fund that could earn a better rate of return and grow to the amount of the mortgage (and beyond) in even less time. This method provides excellent liquidity, but having more direct access to this money may be too tempting for some homeowners.

Regardless of the reason for the refinance, the mortgage consultant will need to know what the existing loan scenario entails, review the homeowner’s long-term goals, and provide a comprehensive spreadsheet that compares and contrasts the various loan programs available.
Bear in mind, refinancing to obtain a lower interest payment could also result in a lower deduction at tax time. The homeowner’s mortgage consultant and financial planner should work hand-in-hand with their mutual client’s best interest in mind.



Steve Hoogenakker is affiliated with ATM Financial, a Licensed Broker, Minnesota Department Commerce. Hoogenakker hosts Home Buyer’s Seminars which are open to the public on the 3rd Tuesday of the month at the Plymouth office. from 7:00 p.m. to 8:30 p.m. Seating is limited. To reserve your seat at the next event, call [763-213-2410 to RSVP and obtain a free copy of Steve Hoogenakker’s Home Buyer Handbook.


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SUBMITTED BY:
Steve Hoogenakker
Phone 763-213.2410
Fax 763-479-0433
E-MAIL steve@MrHomeLoan.com
Website www.MrHomeLoan.com

5 Reasons to Refinance your mortgage

Five Reasons to Refinance Your MortgageThere is an old adage in the mortgage business that states that if you can improve your interest rate by at least two percentage points, then it is a good time to refinance. While that may work as a general rule of thumb, the truth is that there are many reasons to refinance. Here are a few:Lower your interest rate.Securing a lower interest rate is one of the top reasons for refinancing. This can make a big difference in your monthly out-of-pocket costs for housing and save money on financing fees.Build equity faster.If you are in a position to make higher monthly payments due to an increase in salary or other good fortune, you may want to switch from a 30-year loan program into a 15- or 20-year loan structure. This enables you to build equity faster and save a tremendous amount of money on financing fees.Change your loan program.Some homeowners who start out in an Adjustable Rate Mortgage (ARM) find that they would like to switch to the stability of a Fixed Rate mortgage at some point. An ARM may have been the most attractive rate and loan package when you first financed your home, but we can provide you with loan comparison charts to find out if you can save money with another type of loan program that might work better for you right now.Credit score has improved.If your credit score has improved as a result of making your mortgage payments on time and in full, you may be in a position to take advantage of your improved credit standing. We can review your current credit score, the terms of your existing mortgage, and review options for other loan programs that could not only reduce your monthly payment, but also save you money on interest fees paid over the life of the loan.Use the equity you have established.A cash-out refinance allows you to tap into the equity you have built up in your home. You may want to pay off revolving credit card accounts, send a child to college, or use the money for home improvements or personal expenses.Regardless of your reasons for wanting to refinance your existing mortgage, my team and I are interested in helping you make a decision that works best for you. We present our clients with spreadsheets outlining the various programs available. We continually monitor rates and alert our clients of interest rate changes in order to inform them of the best time to refinance.We will also review the terms of your existing mortgage program. It is important to consider whether or not you have a pre-payment penalty written into your existing loan, and what the purpose of the refinance is. It is also important for us to know how long you plan to stay in the home. This helps us to determine whether or not it is beneficial for you to pay points up front to secure a lower interest rate on your new financing. The lender will want to know what the current property value is, how much equity you have built up, and what your current credit score is.
Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included. Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.About the Author
Steve Hoogenakker provides a solid, common sense approach to solving problems and answering questions relating to consumer loan products. His website seeks to provide free online resources for the consumer, including rate-watch, tips and articles, financial communication, news, and links to products and services. Visit: www.MrHomeLoan.com, or you can email Steve at Steve@MrHomeLoan.com
Steve Hoogenakker 5820 74th Avenue N. #100 Brooklyn Park, MN 55443 763-546-1414
Steve Hoogenakker PresidentATM Home Loan - MrHomeLoan Phone: 763-213-2410Fax: 763-546-1812 steve@MrHomeLoan.comhttp://www.MrHomeLoan.com

Realtors Get more listings from FSBO's

REALTORS - get more listings
Drip−Marketing Campaigns for FSBOs
Be There When They Seek a Professional's Help
Do−it−yourselfers will always be a part of our society. But for many
people, there comes a time when the frustration of doing it on their own
far outweighs the cost of calling in a professional. When an individual
who is trying to sell their own home arrives at this conclusion, you want
to be the first person they call.
This can be achieved by initiating a "drip campaign." To do this, you
must have a series of letters, flyers, or handouts that you send
consistently to your FSBO targets. Successful drip campaigns are
clearly systemized, so the process is easy to follow. There's no
guesswork involved, and this can be easily delegated to one of your
team members once the system has been set up. Here are a few tips
for a successful FSBO drip campaign:
Tip 1: Send out tips that will help the seller learn more about how to successfully market their home.
By providing this value up front, you show sincere interest in helping them sell their home.
Tip 2: Make certain your mail stands out from the other mail they receive.
Printed envelopes generally get less attention than envelopes addressed by hand. It's also smart to include brief
handwritten notes with each piece you send. Make sure your message is not delivered on a day when the usual junk mail
and coupon mailers are distributed. You don't want to be lost in the shuffle.
Tip 3: Leverage technology such as databases and personalization software.
Database management software simplifies the creation of personalized letters. It's not difficult to find a font that looks like
actual handwriting, and conveys a personal touch.
These are some of the things I do as part of my campaign to market my services to FSBOs. In many cases, people
attempting to sell their own home become frustrated and end up turning to a professional Real Estate Agent.
Call me if you are interested in learning more about the co−op marketing opportunities I have to offer!
*RESPA laws require Real Estate professionals to pay a proportionate amount of the costs for co−op marketing and distribution. I have negotiated fair
rates for printing and distribution with my vendors. (See http://www.hud.gov to access RESPA ruling 24CFR3500.14.)
Professional Strategies to make Realtors more successful. Paid by Steve Hoogenakker for Realtor partners.
My way of saying Thank You for your business.

From the desk of:
Steve Hoogenakker
President
ATM Home Loan − MrHomeLoan
Tel: 763−546-1414
Fax: 763−546−1812
steve@MrHomeLoan.com

Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included.

The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.
About the Author
Steve Hoogenakker provides a solid, common sense approach to solving problems and answering questions relating to consumer loan products. His website seeks to provide free online resources for the consumer, including rate-watch, tips and articles, financial communication, news, and links to products and services. Visit: www.MrHomeLoan.com, or you can email Steve at Steve@MrHomeLoan.com
Steve Hoogenakker 5820 74th Avenue N. #100 Brooklyn Park, MN 55443 763-546-1414

Realtors - Steer clear of FHA Financing

Steer Clear of FHA Financing:
Dealing with Investors Who Seek Quick Profits
In a recent article, top mortgage originator and national trainer Greg Frost
noted that hyper−appreciation of property values in Albuquerque, NM had
drawn attention from many out−of−state investors in the last year. The
area saw an influx of savvy investors ready to bid on HUD Repos and
other affordably priced single−family dwellings.
Frost warned mortgage originators and Realtors® to be wary of investors
who try to represent themselves as owner occupants in this type of
situation. They may seek to obtain 97% FHA financing, even though their
real mission is to turn around and sell for a quick profit. Not only does the
lender lose their investment due to the rapid pre−pay in this type of
transaction −− The Government National Mortgage Association−backed
security loses value as well!
This practice is called "flipping," which the United States Department of Housing and Urban Development (HUD) defines
as "...a predatory lending practice whereby a property that was acquired is quickly resold for a considerable profit with an
artificially inflated value, often abetted by a mortgagee's collusion with the property appraiser and others involved in the
mortgage loan transaction."*
Flipping is not good for FHA, GINNIE MAE, or the affected lenders. Moreover, the negative effect dominoes to those
earnest purchasers who end up bearing a harsh increase in interest rates as lenders seek to recoup their losses.
HUD established time restriction guidelines in 2003 in an effort to crack down and prohibit the use of FHA loans to support
property flipping. The rule forbids a sale within 90 days of purchase, and requires increased documentation by the lender if
an FHA−financed home is flipped within 180 days. However, HUD's Prohibition of Property Flipping in HUD's Single
Family Mortgage Insurance Programs; Additional Exceptions to Time Restrictions on Sales; Interim Rule was published in
December 2004 to broaden and clarify certain exceptions to the existing regulation.
The interim rule, which became effective on January 24, 2005, now permits federal agencies that acquire properties [i.e.,
HUD's Real Estate−Owned (REO) properties] as a result of a function of their programs, to quickly market and sell those
acquired properties.
Additionally, the interim rule provides that time restrictions on sales do not apply to inherited property. The purpose of time
restrictions is to curb fraudulent property flips, whereby a property is deliberately acquired for the purposes of reselling
quickly and at an inflated value. While an Heir may turn a property quickly and at a profit, HUD now acknowledges that the
sale of an inherited property falls outside the intended scope of the regulation.
The interim rule also establishes that time restrictions do not apply to the sale of properties acquired by an employer or
relocation agency in connection with the relocation of an employee.
With the exception of an Heir selling a home or a person who is forced to relocate due to a job transfer, the HUD definition
of flipping applies to all transactions by individuals (non−agencies) who purchase or refinance using FHA funds. Greg
Frost advises that if you determine that a potential buyer is really an investor looking for a quick turnaround, steer away
from FHA financing entirely and seek to place the buyer in a conventional loan.
* See http://www.hudclips.org/sub_nonhud/cgi/pdf/28050.pdf
Professional Strategies to make Realtors more successful. Paid by Steve Hoogenakker for Realtor partners.
My way of saying Thank You for your business.

From the desk of:
Steve Hoogenakker
President
ATM Home Loan − MrHomeLoan
Tel: 763−213−2410
Fax: 763−546−1812
steve@MrHomeLoan.com