Time to start shopping for a home purchase

April 25, 2012:  "For people who have been waiting to time their home purchase close to market bottom, it's time to start shopping. When the bottom will hit will vary by market, and it's nearly impossible to time a purchase exactly right. But home prices are not the only part of the equation. Buyers also should take into account the possibility that rising mortgage rates could offset any further home value declines that may occur."

Zillow Chief Economist, Dr. Stan Humphries

HARP 2.0 Update: Roll out of AUS coming in April!

HARP 2.0

April 3, 2012 HARP 2.0 Update: The middle to the end of April is the new time frame which has been given for the roll out of the Automated Underwriting System (AUS) update and for investors to update their guidelines. 

When I receive these two updates, I can begin to take applications and help homeowners who qualify for the HARP 2.0 loan.  :)

Call me at 801-540-5108 if you have further questions.  

We had a great experience, Marty is very easy to understand! Loan Closing March 14, 2012

Thank you very much for all your help!  We had such a great experience because Marty is very easy
to understand!  I would recommend my friends and family to Marty and appreciate
all the hard work you folks have done for us!
Dave and Michelle Hancock

9 in 10 homeowners unaware of HARP

With over 20% of mortgages underwater (owing more than their home is worth) it's surprising to think that 9 in 10 homeowners are unaware of either HARP 1.0 or the HARP 2.0 refinance programs.  Click here for details of the recent study: Most American's unaware of HARP

Those who subscribe to my Blog or Facebook Fan page (Mortgages with Marty Facebook Fan Page) are aware of the value of the upcoming HARP 2.0 program.  Click here for more details on HARP 2.0:  HARP 2.0

Additionally, with the FHA no cost streamline refinance available and now the VA Interest Rate Reduction Loan (IRRL) changes which did away with the need for a current appraisal (which is the same as the FHA streamline no cost loan refinance loan).

Whether a homeowner needs help with refinancing their underwater home with a:

• Conventional Loan (HARP 1.0 or HARP 2.0), 
• VA (IRRL), or a
• FHA (Streamline NO COST), I have 3 great refinance options available to help underwater homeowners!

HARP 2.0 Update: March 1, 2012

March 1, 2012  UPDATE on the HARP 2.0 program:  Fannie Mae and Freddie Mac have named the date of March 19, 2012 when they will be rolling out their respective Automated Underwriting Systems (Fannie Mae Desktop Underwriter and Freddie Mac's Loan Prospector). 

Product guideline updates (from my 12 investors) are also expected from the middle to the end of March and that will be the time frame I can begin to take applications for the HARP 2.0 loan.  :)

I have found from my conversations with those who have contacted me that over 90% of HARP 2.0 eligible homeowners can lower their rates by more than 1% and the average current rate of those needing help is in the 5.875% to 6.5% range.  This program is going to help many homeowners who have been on the sidelines and not able to take advantage of great refinance rates available this past 3 years.   

Another noteworthy item is that over 85% of those who have called me are underwater (their homes are over 100% loan to value).  The current loan to value needs to be at least 80% loan to value to be eligible for the HARP 2.0 loan and there are NO loan to value limits (my highest loan to value to date has been 200%).

Quick Overview of HARP 2.0: The loan must be currently insured or owned by Fannie or Freddie and 2nd homes and investment properties are also eligible. If the current loan doesn't have PMI, it will not be required on the new loan, regardless of the current loan to value.  If the current loan has PMI, the new loan will be "re-insured" and will also have PMI.  2nd mortgage holders (Home equity loan or line lenders) so far to date, have agreed to subordinate (remain in 2nd position) to a new HARP 2.0 loan for those homeowners who have contacted me.

Call me with additional questions and I look forward to helping you this month!  It looks like it is finally almost here!  :)

The closing was especially quick! Loan closing on February 24, 2012

Marty, we always have a great experience with you! 

You called us so we could save money by refinancing, the closing was especially quick and you gave us excellent updates and feedback on where we were in the loan process. 

As always, everything went smoothly and we thank you again for taking care of us!

Jesse and Jessica Rowe

Closing February 24, 2012

GREAT rate and low closing costs! Closing January 24, 2012

Trevor Price, closing January 24, 2012

Marty was professional and efficient and he is always able to understand what our loan needs are.  

He found a loan that perfectly matched what we were trying to accomplish!  

Marty helped us in 2008 and we called on him again to help us because of his ability to quickly process our needs and close our loan (and at a GREAT rate and low closing costs!).   

Thanks Marty!  

 

Buy now (in March) and save $264/ year in payments!

Want to save more money by buying now rather than after April 1, 2012?

FHA mortgage insurance is increasing to a 1.75% up front mortgage insurance premium (currently 1%) and 1.25% for the monthly mortgage insurance premium (currently 1.15%) on April 1st, 2012.

I calculated the increase in payment on a $170,000 sales price home and it would be $22/month ($264/year, $3168 over 30 years).

Buy now (in March) and protect yourself from this increase.  :)

How long do I keep my tax forms, home and mortgage records?

How long do I keep my tax records? 

Since we are into tax filing season, and as a homeowner who has accumulated paperwork from purchasing my home and refinancing several times, I wanted to do some research into how long I needed to keep my records in case I had an IRS audit. 

Unless it suspects fraud, the IRS generally cannot launch an audit more than three years after an individual tax return (six years for those who own their own business). 

Nonetheless, it is best to keep all copies of your annual returns forever.  Tax returns will come in handy if you get into an argument over your income with the IRS or with the Social Security Administration (SSA with filing for benefits at some future time).

How long do I keep my home documents?

Keep the final settlement statements you received when you first purchased your home.  Keep these until you sell the home.  Because home improvement costs can be added to the "adjusted cost basis" of your original purchase price, keep your receipts and cancelled checks on home improvements you have made.  This record keeping can save you thousands of dollars in taxes by offsetting taxes you may owe when you sell. 

If you take a home office deduction, keep copies of records for at least 3 years in case of an IRS audit.

How long do I keep mortgage records?

Mortgage statements can be shredded as can past refinance records; save your most current mortgage refinance papers and the rest can be tossed.  As I mentioned above, save your original purchase documents until you sell the home. 

Call or e-mail me and I can refer you to a CPA or book keeper if you need additional help with questions you might have.  Happy tax filing!  :)

Warren Buffett says buy a house now!

In two recent interviews with Warren Buffett he again stated the obvious: Buy a house now!  Make sure you read the last paragraph of this post to hear another compelling reason to buy now!

Warren's reasoning comes from a unique idea he has of  "short-selling" your dollar with real estate investments.  With the value of the dollar depreciating 79% since 1990 (if you had a dollar in 1990, to buy the same stuff today, you need $1.79).  What does he mean when he says to short sell your dollar by investing in real estate? 

Here's why a real estate investment protects your dollar so well: Sure, values have dropped over the past 3 years, on average (nationally) by 42%, but they haven't dropped 79%!  That's a 37% return on your dollar IF it was invested in real estate in arguably the worst real estate market we have seen since the great depression.  He has a good point. 

With home values low, best mortgage rates in history, and the home affordability index the best since 1943, what better time to purchase a home than right now?? 

Want to save more money by buying now rather than after April 1, 2012?  Warren Buffett didn't even talk about another factor of investment savings to take advantage of in the month of March (possibly because he doesn't need an FHA loan? lol).  FHA mortgage insurance is increasing to 1.75% up front (currently 1%) and 1.25 monthly (currently 1.15%) on April 1st, 2012.  I calculated the increase in payment on a $170,000 sales price home would be $22/month ($264/year, $3168 over 30 years).  Buy now and protect yourself from this increase.  :)

You are a true professional in your business! Loan Closing February 10. 2012

Marty you are a true professional in your business!

While working with you last year with my rental refinance and on this loan, you have always been timely with processing, underwriting and closing updates.

When I needed a response, you were always quick to get back to me about my question.

You have been a pleasure to work with and thank you for your help!

Pam Martinez

Loan Closing February 10. 2012