Club Chaos Agents - All Things Hollish, Wacked, and Jacked

In an effort to raise awareness of the dangers of broadcasting your location to your social network buddies, telling them you are not home, PleaseRobMe.com is “Listing all those empty homes out there”.

In a very funny way, PleaseRobMe.com lists robbing opportunities in real time.

 

Recent Empty Homes are listed in a very direct way to let everyone know what they are really saying by disclosing their whereabouts is “Please rob me” because they are announcing to the world that they left their home unattended.

I hope PleaseRobMe.com’s approach finally helps Facebook, Twitter, Google Buzz and other social networking sites users to stay away from revealing where they are and where they are not on their tweets or updates.

Here’s a tip I always share: instead of telling your social network friends where you are, tell them where you’ve been!   Better yet, you can even post pictures of the event or place where you went to spice it up.  This way, you spread the word, and keep safe!

One way to succeed in business, in life, and on Facebook is to know the limits or boundaries that have been set to help us along the way. Here are some important ones:

Facebook Profile:

• You can only have 5,000 friends.
• You can only send direct messages to 20 people at a time.
• You can only tag 6 people on a post.

  

Facebook Groups:

• The Group Administrators can only send direct messages if the Group has less than 5,000 members.
• You cannot obtain a URL (facebook.com/name) or use applications to customize the group.

Facebook Pages:

• Admins cannot restrict who becomes a fan or has access to the page other than by age and location.
• Admins cannot send direct messages to each fan or view their profile unless they have been confirmed as a friend first (or specified to be viewed by Everyone on the privacy settings).
• You can become a fan of up to 500 Pages.

What other Facebook limits can you share?

 

 

Will it be cheaper to close on my property at the end of the month of the beginning of the month?

 

 

How many times do we read something that may not be true?  Or that you get misinformation, just because someone thinks they know.  Can this confuse so many?  I could be here all day on this topic.

Today's topic is Interest Per Diem - It's very simple on real estate transactions. It is the interest charged to the borrower daily for that specific month until the loan closes, or on a refinance, until the loan disburses.  If you were to close on the 25th of February 2010, then you are paying daily interest until February 28th, 2010, which is 4 days of interest.

What I wanted to point out is that there are some lenders, mortgage companies, that can do what is called an interest credit. This basically negates your interest per diem.

 

 

 

This was an answer from a realtor who claims to have been a loan officer for 15 years. This info is misleading...

 

 

 

 

 

 

 

Depending on the lender that you are working with on your mortgage transaction, this might not necessarily be true. Here at Infinity Home Mortgage Company, I can offer you an interest credit.  It doesn't matter if you are doing a FHA loan, a conventional loan, a VA loan, or a USDA loan. We can offer such a credit up until the 5th day of the month. How does this work?

This example will be based on a loan amount is $200,000 with a interest rate of 5.00%. Your daily interest charge would be $27.40 a day. If you closed on the 25th of February, you would pay interest for 4 days, up until February 28th.  This total charge would be about $109.59 to you at closing. And your mortgage payment would be due April 1st.

Now, if you were to close on March 4th, you would be charged no interest at all. We actually credit back the interest to you on the sheet, so that you will not pay anything extra. Keep in mind though, your first mortgage payment would still be due on April 1st.

 

 

 

Conclusion :  Many of you have been told that it's best to close at the end of the month, because this would be cheaper. In theory, this is true, but as you can see, it still wouldn't cost you anything extra if you closed by the 5th of the month. Now, some lenders are different and might extend this to the 7th or so.  And some may not offer this at all.  Why can this help you?  If your purchase transaction has been postponed for numerous reasons, this could save you a lot of money.  If the lender wouldn't do an 'inerest credit', then you could be charged 27 days of interest on the example that I used above.  That could be an additional $739.80 that you would have to bring to your closing.

One thing to keep in mind.... closing your loan at the beginning of the month might not always benefit the seller though.  It all depends on the type of mortgage that they have or the restrictions associated with that loan.  Example : On FHA loans, you are always 2 months in the arrears and if that seller has an FHA mortgage, it could cost them a lot more money to close on the 5th than it would on the 25th. Just food for thought...

 

 

 

Interest Per Diem Reminder :  Just keep in mind that if your loan officer doesn’t bring this up to you, that you should ask them about it.  Especially if something were to delay your closing into the next month, it could cost you thousands of dollars more upfront.

 

 

 

________________________________________________________________________________________________

 

                    

                                                                                           FOLLOW ME ON FACEBOOK

 

 

- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages - 

- Conventional Loans - 203 k loans -

- FHA Home Loans - Mortgages -

 

Experience & Knowledge at its BEST !!!

 

 

________________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For more information about the 2009 Tax Credit for First Time Homebuyers : 2009 Tax Credit

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

 

 

Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc

A warm welcome goes to the newest member of the Google Family (wish I were related LOL): Google Buzz!

While Google had created a social networking serviced called Orkut before Facebook even showed up; the brand new Google Buzz is a social network embedded right on Gmail (below your Inbox link) that promises to bring the most desirable features for connecting online.

Facebook has undeniable dominance in Online Social Networking and Social Marketing and Google Buzz is an obvious face off.

The Facebook and Google rivalry dates back to 2007, when Facebook sold a 1.6 percent stake to Microsoft; to make matters worse Facebook ’s CEO used to be a Google advertising executive. Yikes! Not to mention Facebook ’s campaigns about their captive audience for online advertising ~ competing directly with Google Adwords. It’s been rumored that Facebook is also opening a Web-based e-mail service!

Well, according to Google executives, Google Buzz is IT when it comes to being social online, while Facebook ’s opinion is merely to support anything that helps Web users connect with each other.

So why the BUZZ? Think about it…Gmail has approximately 176 million users worldwide, with the possibility to automatically connect with their contacts, post updates about “what’s on their mind”, see “what’s happening” through updates and make comments, as well as sharing links and showcasing photos and videos.

Google Buzz will cut out the non-essentials and focus on important updates like information that friends have posted, videos from YouTube, pictures from Picasa or Flickr, and even Twitter updates. Like Twitter, Google Buzz also allows users to see the public updates of people nearby. Perhaps the best of both worlds?

Watch this video  to learn more about the new Google Buzz!

 

Not a Gmail User? Learn the reasons why you should have a Gmail account, get one, and see you at Google Buzz.

 

 

 

How many FHA Loans can I have?

 

FHA Mortgages have become increasingly more popular for 2 reasons. You just need 3.5% as a down payment and that many lenders will go down to a 620 credit score. What I am seeing now is the confusion about whether you can have 2 FHA loans because loan officers and lenders are giving the wrong information on the basic guidelines.  And yes, you can have two, and even more, FHA mortgages.

Example :

Just yesterday, I had a client that was told that they need 30% down on their new property in order to have a FHA mortgage, because they currently have a mortgage. What gets worse is that this borrower has a conventional mortgage on their current property, not a FHA loan. Not only did the loan officer get the percentage down wrong, but they never asked what kind of mortgage they have now. In this example, this borrower could buy a new primary property with a FHA loan and only with 3.5% down. But beware of the Buy and Bail, mentioned below.

 

 

 

 

Why would someone have 2 FHA mortgages?

 

The main reason would be that borrower can't sell their current property that has a FHA mortgage because they could be under water on the house.  And this could cost them additional monies just to pay off the house in order to sell it. Overall, the borrower has a need to move because they need to upgrade because of family size and or because they are relocating.  But in order to do this, you have to fall into a few different categories. Please read on...

 

 

What things should you be aware of when it comes to having two FHA loans :

 

There are considerations in determining the eligibility for a borrower in having more than 1 FHA loan in regards to the exceptions that I will list below.  The considerations are as follows :

• your length of time of time on the current property that you own, that has the FHA mortgage, and
  

• circumstances that make that same borrower want to purchase another property with a FHA insured mortgage
  

 

 

Policy Exceptions & Eligibility Requirements

- Increase in Family Size - If the borrower's legal dependents increase beyond a point that is not conducive to the current housing structure, that house no longer meets the family needs, the borrower must :

• pay down 25% equity in their current property or 25% down on their new property, which represents a 75% LTV  (loan to value)

• provide satisfactory evidence of the increase in dependents & the property's failure to meet such family needs
  

Note : A certified FHA appraiser must do a new appraisal on the old home to determine such value. Tax assessments or market analysis reports aren't acceptable.

 

- Relocation - a borrower can relocate while currently having a FHA mortgage if :

• relocating and

• if they establish residency in an area not within reasonable distance from their current principal residence (reasonable will be different with all FHA lenders)
  

If the borrower returns to the area in which they currently own a property with a FHA mortgage, they are not required to re-establish primary residence in that property.

Note : The relocation doesn't need to be employer mandated in order to qualify for this exception.

 

- Vacating a jointly owned property - A borrower can be eligible if they are vacating a property that will be occupied by the co-borrower.

• An example would be in case of a divorce and the ex-spouse will be buying a new property with a FHA mortgage.

 

- Non-Occupying Co Borrower - A borrower who has co-signed for another family member to purchase or refinance a primary residence with a FHA mortgage, that borrower is allowed to buy or refinance their own property with a FHA loan. This is as long as they are a non-occupying co-borrower -  FHA Non-Occupant Co-Borrower loans - Also known as Kiddie Condo loans

 

All of these exceptions are found in : HUD 4155.1  4.B.2.d

 

 

 

On a temporary basis – While FHA analyzes this situation - September 18th, 2008 - ML 2008-25

 

Converting Exsisting Homes to Rentals - Known as the FHA Buy and Bail - This is stated in Mortgagee Letter 2008-25, which is to prevent those that knowingly give false or misleading rental information/leases in which they will just let that property fall by the waste side and not make mortgage payments.

The borrower will now need to be able to have sufficient income to qualify for both mortgage payments. There are exceptions to this rule that relate to minimum loan to values and relocation's as well, so you need to cross reference these requirements to determine if you really do qualify.

 

 

Important Information : In all the cases listed above, if the borrower doesn’t meet these exceptions, then they can only obtain a FHA mortgage if :

• the homeowner pays off the current FHA loan in full or

• terminate ownership of that residence
  

 

 

 

A few things to remember - Not all lenders and or loan officers are on top of these current changes and or ask the appropriate questions when determining what you can qualify for when it comes to FHA Home Loans in general.  Speak to a reputable loan officer and not one that tells you what you want to hear or sounds good.

NEW FHA LOAN CHANGES - 2010 FHA mortgage changes

 

 

________________________________________________________________________________________________

 

                    

                                                                                           FOLLOW ME ON FACEBOOK

 

 

- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages - 

- Conventional Loans - 203 k loans -

- FHA Home Loans - Mortgages -

 

Experience & Knowledge at its BEST !!!

 

 

________________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For more information about the 2009 Tax Credit for First Time Homebuyers : 2009 Tax Credit

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

 

 

Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc

YouTube created a video to teach families to keep their children safe online. I think we can all learn something from this video.

"Personal is Personal", "Think before you post", "Respect yourself"... I always say "the Virtual World is just like the Real World". If you tell your children not to talk to a stranger IRL (in real life), you should also address this issue in terms of Internet and SMS (texting).

I really like this approach to teaching Internet Safety because it's fun and it's third party validation. As a single mom, I am fun and adventurous, but sometimes I have to be the disciplinarian. It is good to have backup such as this and not have to resource to "because I said so". Children have the right to know the reason behind rules and I believe they will be more likely to follow them if they develop the belief that they are in their best interest.

What Internet Safety Tips would you add to the list?

 

Important Blog Today – FHA loans & HUD’s changes - You can make your voice heard. Please read further..

 

 

So much has transpired in the last week with FHA loans and there are things that you need to know and understand why some of these changes took place.

Last week HUD put out their policy changes and what could take place in the near future. FHA loan changes go from fact to fiction. The next day, they put out the official HUD mortgagee letter, ML 2010-02.

Overall, I have noticed several comments that either the commentor seemed confused about the changes or believed that the changes would be no good and or destroy home buying. Which will lead me into my next blog tomorrow. We must ABOLISH FHA loans. (please stop by tomorrow for any eye opener)

 

 

 

Some important FHA changes -

 

What were the FHA loan changes by HUD? Please read : FHA loan rumors become a reality. Keep in mind, the only change that is official is # 1. The other specified changes will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.

 

1. Raising the FHA UPMIP (upfront mortgage insurance premium) - So many keep saying that this is an added expense to borrowers at closing. Yes & No. This statement is misleading, even though it appears on the HUD settlement statement. In reality, you are allowed to finance this upfront mortgage insurance into the loan. The new change was only 50 basis points, going from 1.75% to 2.25%. This change will go into effect on or after April 5th, 2010, with all new FHA case numbers assigned.

 

Example on the difference :

On a $300,000 loan, you are talking about an additional $1,500 added onto the loan. This equates to an additional $8 per month. That is not much to disqualify someone, unless you were already exceeding the debt-to-income ratios already.

 

Why was this change made?  To help re-establish FHA's capital reserves. David Stevens gives an explanation to some of this in FHA changes.  Just a FYI - David has just recently joined us at Active Rain and was appointed the Assistant Secretary of Housing in early 2009. I wanted to share my thoughts because some of my views slightly differ from what Mr. Stevens wrote in his blog post.

 

 

2. FHA credit score changes & down payment updates - With all FHA loans, you still don't need a credit score. Keep in mind most lenders and investors have what are called lender overlays.  The lender can add to the FHA guidelines. Why would a lender do this?  To make it more sellable to other investors on Wall Street.

This is a change that is not really a huge change. You must now have a credit score of 580 or above in order to be allowed to use the regular 3.5% down payment guideline. Any score below this, the borrower will need at least 10% down. Why is this not such a huge concern? Most lenders are at 620 and several are at 640. The reason being is that most investors on Wall Street don't want to purchase loans less than a 620, because more loans under this score don't perform as well.

Credit scores under 620 - Yes, there are a few investors that allow for scores under 620, but BUYER BEWARE. Just because a loan officer has this program, doesn't mean that it will happen. On top of that, most lenders have major penalties if you fall under the 620 score. These penalties are anywhere from a 1/2% in rate to up to 2 additional points in fees, and sometimes both. Why?  Because that lender will portfolio that loan, hoping that they can sell it in 12 months. The additional points and higher rate is to help with their risk, for those loans that don't perform. 

My opinion on this?  Work with a trusted loan officer that is not pushing the lower credit score. Work with a loan officer that will help you get your credit scores up in 6 months to a year. So what you missed the first time homebuyers tax credit. Because of the difference in fees and rate, it will cost you more money over the longer period than if you just waited and worked on your credit.

 

 

3. FHA seller concessions from 6% to 3% in seller help - Mr. Stevens stated this in his blog, FHA changes. "The current level exposes the FHA to excess risk by creating incentives to inflate appraised value.  This change will bring FHA into conformity with industry standards on seller concessions."

Hey, I love making loans, but I will have to agree with HUD's assessment here. Now, I will say this though. It will hurt many markets across the U.S. Especially those families that are middle to lower income and those buying homes that are priced at $160,000 or lower, especially those at $90,000 and less.

 

 

Overall, we can have that whole argument that you need skin in the game, etc, etc. On all FHA loans, the borrower still needs 3.5% of their own money into the transaction. Sure, you can get a gift from family members, or even grants, and or even money from non-profit organizations. But the outcome in my opinion, could dampen the housing recovery even more. And that is why you can voice your concerns and add comments to the Federal Registry. FYI - I will be posting a powerful blog tomorrow on Abolishing FHA loans overall. Please stay tuned.

 

 

 

Make your VOICE heard in February 2010

 

 

The Federal Register

 

PS.. - Reminder - I will post a new blog when these changes become public on the Federal Registry, allowing everyone to voice their opinions. Here is when you can stand up and be officially heard. YOUR VOICE.

 

 

• FHA Loans Rumor Alerts - 3% seller concessions & FICO scores - Part 1 of 2

• FHA Loans Rumor Alerts - You don't need 10% or 20% down & more about credit scores - Part 2 of 2 (not truly all about part 2, but I do go into discussions about the credit scores - because of the recent FHA changes, I didn't get into great details about 10% or 20% down)

 

• What is Transparency?? Best Mortgage Rates/Online services - (Part 1 of 2)

• Transparency in Real Estate/Mortgages - Interview your Realtor or Loan Officer - (Part 2 of 2)

 

Okay.. it's been stated and written....

We need to ABOLISH FHA Loans!!!!

 

 

 

                   

                                                                                               FOLLOW ME ON FACEBOOK

 

 

- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages - 

- Conventional Loans - 203 k loans -

- Mortgages -

 

Experience & Knowledge at its BEST !!!

 

 

_________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For more information about the 2009 Tax Credit for First Time Homebuyers : 2009 Tax Credit

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

 

 

Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc

 

Take the TIME to do your own INTERVIEW….

 

 

What is an interview? Wikipedia defines interview as a conversation between two or more people (the interviewer and the interviewee) where questions are asked by the interviewer to obtain information from the interviewee.

When you are shopping for a mortgage or for a realtor to help you sell your house or to help you buy a house, those that you talk to, should be interviewing you. Why should they be interviewing you? To get a feel for you, to understand your needs, and to get a feel for what your goals are now and in the near future. I have written about this several times, what a loan officer should be asking their potential client. Jeff Belonger's Interview process as a loan officer.

 

 

So as a consumer, when shopping for someones services to help you with your mortgage or home buying/selling process from a realtor, what things should you consider?

First off, take this process seriously and just don't go with someone that typically uses the words : I guarantee you, I promise you, I am the best, etc, etc -

Secondly, take the time to interview these individuals. There are several ways at your fingertips. What you should be looking for is transparency in the individual and their services. I talked about this in : What is transparency all about? -

 

 

 

 

So what are the ways that you can conduct your own interview? It can be simple and not take much time at all. Here are some options (keeping in mind that more of these options are when researching your loan officer) :

• You can do a search online by using Google.com and Bing.com. Just type in the person's name and also do a search on their company. You might be surprised at what you find out.

• BBB - Better Business Bureau - Find out about the company that individual works for. Keep in mind that not everyone is always happy and likes to complain, so some complaints might be fluff per se.
  

• The National Mortgage Licensing System & Registry (NMLS) will be a great place to not only find out if that loan officer is licensed, but their credentials, and some history about that person. Here is the website : The National Mortgage Licensing System & Registry - This site is currently being used by 38 states and will be mandatory for everyone by the end of January.There will be a separate link just for this new site and for these searches. Keep in mind that this is a good form of transparency, but not 100%. It should be a solid tool though.

• State and local agencies - Each state has their own web site for loan officers, mortgage companies, and realtors. There are different ways to search through these sites, but not every state has the same requirements.

• FHA Approved Lenders - HUD Lender Locator - This tool allows you to see what lenders are actually FHA approved.

 

 

 

Summary : The bottom line is that you should become pro-active in your searches, when searching for that true professional. Even if someone gives you a referral, just don't take their word for you. I have seen referrals backfire for several reasons. And don't just take in account someones years of experience. I approved a loan 2 years ago with 15 years of experience at the time, after a loan officer had denied the loan 30 days later, who had 30 years of experience. Questions do matter, and not just name, rank, and serial number. Get to know who you are dealing with.

 

PS...I know I didn't hit upon every type of method. If you have some other means of searching for people, please feel free to include them in the comments below and I will include these with your name.  Thanks

 

 

All pictures are courtesy of istockphoto.com

 

• What is Transparency?? Best Mortgage Rates/Online services - (Part 1 of 2)

• Transparency in Real Estate/Mortgages - Interview your Realtor or Loan Officer - (Part 2 of 2)

 

 

 

 

                    

                                                                                               FOLLOW ME ON FACEBOOK

 

 

- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages - 

- Conventional Loans - 203 k loans -

- Mortgages -

 

Experience & Knowledge at its BEST !!!

 

 

_________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For more information about the 2009 Tax Credit for First Time Homebuyers : 2009 Tax Credit

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

 

 

Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc

Happy New Year!!!

We are grateful for 2009 and eager to experience what 2010 has to offer.  Wishing everyone on Earth a joyful, peaceful and successful year [and decade] where love reigns and families are together.  We love you!

May God give you... 12 Month of Happiness, 52 Weeks of Fun, 365 Days Success, 8760 Hours Good Health, 52600 Minutes Good Luck and 3153600 Seconds of Joy!

“Christmas gift suggestions:
To your enemy, forgiveness. To an opponent, tolerance. To a friend, your heart. To a customer, service. To all, charity.
To every child, a good example. To yourself, respect.”.....  and to all of you, my non-talent of singing this Christmas Song to you. At least I have the bilingual thing going for me LOL

FELIZ NAVIDAD!!!