Brian Leavitt, REALTOR®

OK, It's real estate..

When one of my clients called the other day with a real estate question, I was surprised when she prefaced the question with “I know your main business is mortgage but...” I was delighted to help her with her question and found it interesting that the image I had cultivated is that mortgage is my primary business. One of the things this tells me is I need to do a better job educating my clients, so here goes.

Real estate is my primary business. In pursuit of my goal of delivering excellent service in real
estate I found that a consistent weakness in transactions was the mortgage component. This led me to the conclusion that the only way to make sure my clients were adequately served was to become
an expert in mortgage as well as real estate. I began serving my clients with their mortgage needs more than 18 years ago. The objective of the mortgage company has, from our first day in business, been threefold:

1. To serve my real estate clients by thoroughly educating them about their financing options so that they can select the best mortgage product for their needs.

2. To deliver competitive interest rates and low fees.

3. To maintain the highest level of integrity putting client needs first always.

Because of this we weathered the mortgage industry meltdown in a market that most of our
competitors did not survive.

As stated previously, real estate is my primary business but a large part of my success is the unique
ability to merge both the real estate and mortgage component taking service to a higher level. Even in the event that my client uses another source for their mortgage financing, the same level of
service and heart of the teacher are there.

In closing I would like to take a moment and say thank you to my many, many loyal clients who helped me during this very difficult time by referring friends and family for both their
real estate and mortgage needs. I can never thank you enough for your loyalty and support. I am blessed because of you.

Brian

The Top 10 myths and misunderstandings about refinancing in today’s market..

1. It is just too hard to get a loan. The fact is for some time lending guidelines
   were just too easy. Today's guidelines have moved to a place that really does make sense. Qualified borrowers are finding the process to be reasonable and streamlined. The restrictions that have been put in to place are good for borrowers and for the banks making the loans.
2. I'm waiting for rates to go down. Right now rates are the lowest that they have
   ever been. Although it is possible rates could go down more it is unlikely. The Federal Reserve has indicated that they will be holding rates down for a period of time in order to help stimulate the economy but today's low rates are not going to last forever.
3. Since home values have dropped my loan would be above 80% so I would have mortgage insurance. Many borrowers qualify under the new HARP refinance program. Under HARP guidelines if you do not have mortgage insurance now you would not have it with the new loan. With rates now under 4% it is an amazing time to refi.
4. My credit score is just too low. Your credit score is not the only criteria
   the lender looks at. Often there are compensating factors that can mitigate a low score. For owner occupied homes refinances are available with scores as low as 620.
5. A refinance is just not worth the expense. Maybe true, maybe not. It is a simple calculation to determine the “recapture” time for the refinance. If your payment
   goes down $200 per month and the cost is $2,000 then $2,000 (cost) divided by
   $200 (monthly savings) equals ten months for recapture. If you plan on owning the home more than 10 months then it makes sense. Right now Northstone Mortgage is closing refinance loans with costs averaging in the range of $2,000 including all closing costs. *
6. My debt to income ratio is too high so I think it is likely I won’t qualify. Again
   this is a case by case decision taking into account multiple factors. I am seeing some high debt to income ratio loans get approved but when it makes sense. For example a borrower who is current on all of their obligations and having their monthly housing expense reduced is a “makes sense” loan with a high probability of getting approved.
7. I was on unemployment so my income was interrupted so I don’t think I can qualify. If you are back to work in the same line of work this is easily covered by a simple letter of explanation and a verification of employment from your present employer indicating that continued employment is likely.
8. I don’t want to start over with my loan. Good point. Rates are so low that we are moving many borrowers from 30 year loans to 10 or 15 year loans often without a significant increase in payment. We also offer 20 year loans. Paying your loan off quickly is one of the smartest money moves you can make. Call me anytime for more details on this one including a simple step by step plan to do it.
9. As soon as values come up I am selling so I don’t want to spend the money on a loan that I am paying off soon. Again, good point, however if you are waiting for values to rise it could be a long wait. Goldman Sachs released a report recently indicating that they do not believe we will see house values return to 2006 levels before 2023… that’s not a typo. It goes straight to the recapture question discussed in myth 5 above.
10. I have a second mortgage that I want to keep. I have been told that if I refinance I will have to pay it off and close the account. This one is sometimes true but usually not. Most of the time we can do what is called subordination. The way loans work is that when you close the loan you sign a promissory note which is your promise to pay the loan back and you also sign a deed of trust which is a document that is a lien on your home securing the promissory note. Each deed of trust is in lien priority based upon when it is recorded. When you pay off your existing first mortgage your second mortgage would then become the first lien UNLESS we ask the second lien holder to allow the new mortgage to be in first lien position or “subordinate” to the new first loan.

These are questions and concerns that I have been hearing from borrowers I have been recently serving. If you have questions about your specific situation please let me know. I am pleased to help any way I can. Usually the only way to learn if a refinance is a good idea is for us to “run the numbers.” There is no charge for this service.

*These fees are based on zero point loans with the lender paying the loan origination fee. Call for a free quote based upon your specific needs and situation.

Brian Leavitt

Northstone Mortgage

MLO#114864

How to Avoid Scams This Holiday Season

 Anyone can be the victim of a scam. However, there are several common sense ways to prevent being swindled:

• Beware of pop-up ads online. While these ads may promise big savings, you’ll only receive steep monthly charges.
• Your bank will never send you an email to verify your account or social security number. These email schemes are common and can look quite convincing. However, if you receive such an email, report it to your bank immediately.
• Shred your paper statement. If you choose to receive paper statements in the mail, make sure you shred them when you’re finished.
• Don’t do any financial transactions on a public computer. This includes everything from checking your statements to shopping online.
• If you plan to shop online, purchase the latest antivirus and antispyware software and make sure you update it regularly.

Beware of these debit card scams
Many of the latest scams involve stealing information from debit cards. Common ways to steal or copy information from your debit card include:

•  Card theft: The thief uses a special device that makes it appear as if your bank card is stuck in the machine. After you leave, they steal your card.
• Double swipe: The thief, a staff member of the store or restaurant, swipes your card through a hidden device that duplicates the magnetic information.
•  Copycat technology: The thief inserts a tiny device into the card reader of a cash machine or gas station to record your card and PIN data.
•  Faux Machines: Thieves set up a phony ATM machine that records your card and PIN information and makes a duplicate card.

Unlike credit cards, where you’re only responsible for $50 if it’s lost or stolen, you may be held responsible for the unauthorized charges if you do not notify your bank within two business days. Sign up for online ranking and review your account balances daily for unauthorized charges.

Planing to own a home some day? Eliminate Debt

Loans
Most loan payments are calculated using compounding interest, which is the interest that is added to the principal of the loan each month that the balance is outstanding, causing you to pay interest on interest. Although it’s designed to work against you, it is possible to pay off the loan three to four times faster with minimal additional cost to you, just by knowing your “magic number.” Your “magic number” is the portion of your monthly payment that goes to pay the principal. To pay your loan off quickly, double, triple or quadruple your  principal, or “magic number” each month.

Consumers have an average of 13 credit obligations on record with a credit bureau.
Source: http://myfico.com

Credit Cards
The average credit cardholder has 3.5 cards.* If you have outstanding balances on two or more credit cards, use the rollover formula to pay them off.

• Make a larger payment on the card with the highest interest rate and pay the minimum on the rest.
• Once this card is paid off, apply the amount of its payment to the minimum amount you were paying on the card with the second highest interest rate.
• When the second card is paid off, add that amount to the payment of the third card, etc. until you have paid off all of your credit cards.

The average American with a credit file has over $16,635 in debt, excluding a mortgage.
Source: US News and World Report

Tips to Help You Stick to Your Budget

• Set 90 day goals.
• Track daily and weekly expenses to know where your money is going.
• Ask for help. Enlist a friend or loved one to help you remain accountable to your budget.
• Focus on the win! Imagine how you’ll feel when you’ve paid off your debt and have achieved financial freedom.
• Use a small portion of the surplus to reward yourself.

The Big 6 keys to buying a home now

1.  Home prices have hit bottom or are very close to it. Especially where prices have experienced big reductions in the past couple of years, there will be little change this year or next, according to national economists.

2.  Affordability is the highest in 20 years, since 1991. It's defined as the ratio of the median priced home to median family income. Economists at Fiserv Case-Shiller, which tracks home prices, say the ratio is now 2.6, down from a peak of 4.1 in mid 2005.  Renters considering homeownership  are encouraged by the current difference between rent and the median monthly mortgage payment. It fell from $745 in 2005 to $102 now. Low vacancy rates will allow landlords to raise rents next year by up to 3.5 percent.

3.   Mortgage interest rates are about as low as they can go. Recently, the national average 30-year fixed rate was 4.5 percent.  Adjustable rate mortgages are even cheaper and rates for jumbo mortgages are down as well.

4.   It's a buyer's market. With many choices, buyers can find properties in good school districts or near their jobs. And shopping takes less time.   Some investors bought properties, remodeled, but can't find buyers. They may be willing to make deals.

5.   Distressed properties and bank-owned foreclosures are good buys. Bank-owned properties sell for an average discount of 35 percent off the per-square-foot price of other homes for sale, according to Realty-Trac.  It could take three to six months to close on a short sale, but values are outstanding.

6.   Homeownership is an attractive choice. It's a financial decision but there's more to it than that. When you own your home, you control your living environment, change the home as you see fit, and create a sense of rootedness in your community, according to Kiplinger's Personal Finance.

You don't have to deal with a landlord, and with a fixed interest rate, your payment will not rise because of inflation or rent increases.

U.S. Cities Where Homes Sell the Fastest - Seattle #2

In a recent article where CNBC uses Zillow's data to rank cities across the US, Seattle Ranks number 2 behind two Bay Area Powerhouses, San Francisco and San Jose(tied for first) Below is the complete article.

Although the U.S. housing market continues to struggle, many local markets are doing significantly better than the country as a whole, with some places virtually missing the housing bust altogether.

While shifts in home values are important in any market, it's important for sellers to determine the length of time a property can expect to be on the market before it will be sold. The faster that homes sell, the faster an inventory backlog can be cleared, suggesting heightened demand and an upward trajectory in prices. Additionally, if a home is on the market for an extended period of time, it may may turn off prospective buyers and force sellers to accept less-favorable offers.

To find the cities where this trend is the most extreme, real estate website Zillow.com analyzed the numbers to identify the cities where homes sell the fastest, according to the median number of days on the market. The numbers presented here are representative of home sales between mid-April and mid-July 2011.

During this time, the national median for time spent on the market stood at 117 days, while New York (168 days), West Palm Beach (175 days), and Indianapolis (180 days) were the cities where homes sold the slowest.

Also included in the analysis is the Zillow Home Value Index (ZHVI), which represents the median measure of home valuations covered by Zillow. The information presented here also includes the proportion of listings with price cuts, the average amount those listings were reduced, and the “final discount from list price,” which is the average amount that was negotiated off the original list price before the sale.

So, where do homes sell the fastest? Read ahead to find out!

5. (Tied) Oakland, California

Median time to sell: 81 days
Zillow Home Value Index: $316,400

Listings with price cuts: 26.17%
Average price cut amount: 8.70%
Final discount from list price: 1%

5. (Tied) Woodbridge, Virginia

Median time to sell: 81 days
Zillow Home Value Index: $230,500

Listings with price cuts: 20.54%
Average price cut amount: 5.66%
Final discount from list price: N/A

4. Alexandria, Virginia

Median time to sell: 74 days
Zillow Home Value Index: $402,500

Listings with price cuts: 33.30%
Average price cut amount: 4.47%
Final discount from list price: 2%

2. (Tied) Seattle, Washington

Median time to sell: 73
Zillow Home Value Index: $347,700

Listings with price cuts: 33.55%
Average price cut amount: 6.88%
Final discount from list price: 2%

2. (Tied) San Jose, California

Median time to sell: 73
Zillow Home Value Index: $494,500

Listings with price cuts: 26.16%
Average price cut amount: 5.58%
Final discount from list price: 1%

1. San Francisco, California

Median time to sell: 59
Zillow Home Value Index: $655,400

Listings with price cuts: 22.55%
Average price cut amount: 6.05%
Final discount from list price: 1%

Is now a good time to buy?

Ask Brian

We've heard so much about the stock market and the real estate market that we don't know if we should buy a house or not. Give us one good reason why we should take the plunge!

Ask Dolly Lenz, the most successful real estate agent in America. The other day, on a down-day in the stock market, she was interviewed on Fox Business.

First, she said that in most areas of the country, the real estate market is recovering. That means homes are probably priced about as low as they will be.

When asked who should be buying a house right now, she said it should be someone with a stable job that pays enough to afford the monthly mortgage payment. And that person would probably be someone who has been waiting for the right time to buy.

I could have told you that myself, but now you have the same advice from one of the foremost experts in America.

Lenz usually sells to a Hollywood star, a billionaire or a foreign dignitary. One of her sales in 2005was the Burnt Point mansion in Wainscott, New York. It sold for $45 million.

 

Looking for a short sale?

Right now, some attractive properties could qualify for a short sale. That means the lender agrees to sell the property for less than the amount owed on the mortgage.

The lender in these cases decides that it's better to make the short sale than to foreclose on the home, which would cost the bank or mortgage company more money in the long run.

The buyer doesn't have to feel sorry for the people who can't maintain the mortgage, because the short sale rescues them from foreclosure.

Obviously, it's a more complicated process than simply taking out a mortgage, but if you have the time and patience, the short sale could work out well for you.

And it is a good decision for both the lender and the seller.

If you're interested, I can start looking for properties that would interest you and that could be considered for a short sale.

Selling in today's market

In today's market many sellers want to know the secret to selling their homes quickly. They want to know ways to hold on to the equity they've built over the past decade. Unfortunately, there is no golden equation that equals the perfect sale. Yet, while there is no "sure thing" in the housing market these days, there are certain factors that affect how quickly and for how much your home sells. Here are the top ten. Consider how these apply to your own home, how that affects marketing, as well as what aspects of your home you should "play up" to elicit a better response from buyers. 1. Price: It's a common misconception in today’s market that location is the leading factor of whether or not a home sells. It is, instead, price. Think about this scenario. You have a home located in a prestigious and sought-after neighborhood, yet the list price is tens of thousands of dollars over the comps for the area. No one will be interested. This same property priced just below the competition will fly off the market. 2. Location: Okay, location is still very important. A home that sits next to a transfer station, crime-ridden neighborhood, or busy street is less desirable than one that backs up to green space. If your home has a premier location, then by all means boast about it in your marketing. 3. Livability: This is fast becoming a hot button word in real estate. Buyers today are looking for neighborhoods that deliver amenities such as golf course, restaurants, and theaters.  I am surprised how often people map the walking distance to the nearest Starbucks.   They want good schools, walkable neighborhoods, and plenty of things to keep them entertained. 4. Condition: There is a certain segment of the market that is made up of renovators, flippers, and investors. You won't find as many people these days eager to buy your run-down property that is in a good location. They simply can't sell the property fast enough before monthly mortgage payments begin eating up their profit. Homes that are well-maintained or in move-in ready condition appeal to a broader range of buyers. Even simple fixes, such as new paint, cleaned carpets, or power-washed decks, can have an effect. 5. Competitive Advantage: Don't make the mistake of assuming that you're in this race alone. Past area sales, as well as current listings and foreclosures, are your direct competition. You must take these into consideration when settling on a list price for your home. What amenities and upgrades do these homes have? Do the homes in your neighborhood all have updated baths, kitchens, or landscaped yards? In order to price in line with them you must be able to boast these same things. 6. Curb Appeal: Curb appeal is the first impression of the home. You must keep the yard orderly and maintained when your home is on the market. 7. Staging: Once inside your home, a buyer must be wowed. Intoxicate their senses. They want to see up-to-date furnishings, smell a clean home, touch cabinets that are in good repair, hear peace and quiet, and of course "taste the good life." 8. Kitchens: A kitchen sells a house. It is where families gather and connect. Minor kitchen remodels rank high among the list of top remodeling projects, with owners updating cabinets, counters, and floors. Nobody wants an outdated kitchen. What fixes are in your budget? If your kitchen is already spectacular, be sure you play this up in any marketing. 9. Agents: An accomplished, knowledgeable agent can be your biggest ally during the selling process. They know the latest market trends and have built a network of agents and contacts to whom to market your home. With an arsenal of marketing tools available to agents today, from video tours and webcasts to brochures, websites, and mls listings, they are part of your selling team. 10. Marketing: Marketing has gone global. With the power of the Internet, you can showcase your home to millions of potential buyers. Sit down with your agent and develop a solid marketing plan. This is why you are paying them a commission. Make them earn it! The market is not what it once was. You must be realistic about what selling in today's market means. You value your home, but it may not be "worth" as much today as it was yesterday, last month, or last year. Consider these top ten ways a home sells and help your home put its best face forward.

What is Title Insurance?

Many would- be home buyers and home sellers as me the following question. What is title insurance? What is it for? What does it do? The best answer is with a story. The following question was posted online.

"I paid cash for my house 2 years ago. Now my builder's bank is foreclosing on the surrounding plats and now they want to foreclose on my home. How do I protect my home?"

Title insurance is in place to cover the policy holder in the event that ownership of a piece of real estate comes into question. The only reason the builders bank is trying to foreclose is that they believe they still have a title ownership right to the property.

Call your title insurer. Title Insurance companies will defend your title in court if necessary, at the company's expense. In addition the company will indemnify you against monetary loss or damage due to covered title defects, according to the terms of your title insurance policy.