Return on Investment...

Do you buy a rate down or not? Rates are low... is it worth paying a 1/2 point to 1 point to buy the rate lower?

This depends on what your Return On Investment (ROI) will be. To calculate this have your principal and interest payment with out buying it down. Also you will need what your payment would be with buying it down. The next number you need is your cost to buy it down (your 1/2 to 1 point -- please note a point is 1% of your loan amount).

Subtract the lower payment from the larger payment.
Divide the points by the difference in the payment.
Divide this number by 12.
This is your ROI in years. You want this number to be as low as possible to have it make sense. The rule of thumb is between 2 - 4 years. But it will depend on you short and mid-term goals, your current equity position and/or liquid assets.

This may sound confusing but it is easily shown with real numbers. For a ROI calculation on your specific scenario contact me via my website at: http://www.new-hampshire-home-mortgage.com

First Time Buyers NOW IS THE TIME!

The government is now paying you to buy a home if you are a first time buyer... they are paying you in the form of a Tax Credit on your year tax returns. You could get up to $8,000 if you buy a home this year and qualify.

Now is the time to see if you can buy a home. What are you waiting for? Low Rates, Plenty of homes for sale, Motivated Sellers willing to help pay your closing costs... it doesn't get better until you remember that you can get up to $8000 on top of all that!

For more information see the line we have posted on our website: http://www.new-hampshire-home-mortgage.com

Rejoice and Live -- Reverse Mortgages can Help You!

A reverse mortgage will let you enjoy your golden years without worrying about the gold.

If you have a mortgage payment now you can get a reverse mortgage and not have a payment any longer.

Has your retirement account been hit with the economic downturn?

Do you need/want the security of a line of credit with no payments required?

Have your property taxes outpaced your fixed income?

Are medical bills or prescriptions too much and you are making difficult choices?

Are you looking to buy a second home?

do you want to give to your kids and see them enjoy their "inheritance"?

A Reverse Mortgage can do any of the above or any combo of the above.

For more information for yourself or your parents, please contact me through my website at: http://www.new-hampshire-home-mortgage.com

Remembering

I wanted to take this time to say goodbye to Dan Carey who passed away yesterday. Dan gave me my first job at the local corner market where I worked from age 14 through college and some after. I learned more from Dan than you can imagine.

Dan was one of the great men in this world and we are all worse off for his passing.

Matthew J Butt
http://www.new-hampshire-home-mortgage.com

VA Refinance Mortgages

If you have a VA loan did you know that you can do an "Interest Rate Reduction Loan" (IRRL) and reduce your rate without an appraisal, income, or credit check?

Yes you can quickly lower your rate and save money every month for very little hassle! You can apply today, sign a few forms, provide minimal documentation, and start saving money in the very near future.

A loan that truly makes sense to do! For more information in regard to VA Refinance Interest Rate Reduction Loans contact me via my website at: http://www.new-hampshire-home-mortgage.com/

What Next...

What is in store for borrowers/buyers next? The credit market is continuing to tighten. Restrictions are continuing in the form of guideline changes. The guideline changes are requiring higher credit scores for the lender's programs. For FNMA "Fannie Mae" there have been increased rates for lower credit scores and higher loan to value ratios.

The reasoning is the lower the credit score the higher the risk of default/Foreclosure. The higher the loan amount to the value of the home the less the borrower has invested and the easier it is for the borrower to walk away. The problem with this reasoning is that MOST people pay their mortgages. It is the minority that is ruling the majority in this case by creating issues due to foreclosure. Now don't get me wrong the minority is 3 - 5% of the homes in America that are in trouble or have been foreclosed upon. this is a huge number BUT look at it the other way 95% to 97%of Americans are paying their mortgages! A majority of mortgages are good. The system is trying to increase rates on the higher risk categories and the mortgages system should! If there is an increased risk of default the lender HAS to protect itself with an increased rate for all borrowers that fall into this category to plan for the borrowers that do get foreclosed on.

For more information about mortgages and your opportunities to purchase home with straight answers to your questions please contact me via my website at: http://www.new-hampshire-home-mortgage.com

What Rate is Low Enough?

What rate is Low Enough for you...? When do you pull the trigger on locking your rate. Do you wait for 4.75%... or is 4.875% good enough? Nobody can answer these questions but you. What you need to decide is it worth the gamble of the rates dropping more to save a little bit more money every month or take the slightly higher rate. See Example:

$100,000 mortgage at 4.75% = $521.64
$100,000 mortgage at 4.875%= $529.21

So waiting for the 4.75 would save you 7.60/month or $2,736 over the life of the loan. Anything you can keep in your pocket is a good deal BUT what happens if you pass on the 4.875 in hopes of getting the 4.75% What if rates never go down to the 4.75% rate you wanted? You would be stuck at your higher rate and you would not enjoy any savings! This is the risk you run and only you can decide what is the best deal for you. Only you can filter all the advice and decide when to lock. Listen to advice from your broker, your trusted advisers, friends, family, read information, and then make your decision.

For more information or to discuss this topic please reach me via my website: http://www.new-hampshire-home-mortgage.com

Vacation Home Purchase, is now the time?

Is it time to purchase your vacation home? Yes and No...

Yes it is the time as there are some great deals on vacation homes. Yes it is if you are in a stable job and the current downturn while it affects everybody your income is secure. Yes it is if now was when you were planning on buying. second home ownership is about cash flow can you tie up a certain amount of money every moth to own another property. will you use this vacation home enough to warrant the money you are spending on the months that you will not utilize it? Are you taking a long term approach that a good deal today means a good profit when sold?

No it is not time to buy a vacation home because of your current job being based on the economy. If you are a commissioned sales person that is getting hit by the downturn then it would not make sense for you right now. You want to be able to view the amenities, landscaping, docks, beach etc... in the winter you can't check these parts of a waterfront home which are crucial to your enjoyment AND with shoreline protection rules/regs/laws you will not be able to change the shoreline easily.

A couple of viewpoints on vacation homes. For more information and both sides of every mortgage please contact me via my website at: http://www.new-hampshire-home-mortgage.com

Bank Owned Properties -- BE Prepared

There is a reason that Lenders list their properties for sale "As Is As Seen" this means they may be unwilling to do anything to the property to get it up to snuff. You may be buying a Lemon or a Diamond in the Rough.

The process is rarely smooth as the seller which is a company needs to sign the Purchase and Sales agreement after it has been negotiated. This typically takes some time. Negotiations may take even more time.

Properties can be winterized so you have to get the systems operational prior to home inspections and appraisals.

You also have to watch out for penalties for not closing on time.

Great deals to be had if you are patient and prepared.

For more information about avoiding these pitfalls contact me through my website at: http://www.new-hampshire-home-mortgage.com

4% Government Rates??

I heard today on NPR on the way into work that the Government is trying to hatch a plan to have a 4% interest rate on mortgages. WOW that would be great, but when is the government going to start this program... still needs to pass so now it is just hype. How is the government going to do this... haven't said this either.... The US Government does not set interest rates they are set by the open market by what investors are willing to pay for mortgage backed securities. The new story stated that the Government could sell 10 year treasuries at 3% and then have mortgage money available at 4% so the government would make money... But if private companies can't make money at those margins how would the government do it?

So before we all line up to get our 4% government loans lets get the programs passed through congress (if that happens) and the programs in place. When the office of the Housing and Urban Development received a passed bill increasing the Reverse Mortgage Limits it took 4 months to have the limits raised.