Top Three Reasons to Feel Good About Buying a Home in the Twin Cities

It doesn’t happen very often where, in a compact period of time, I see a wealth of reliable data released that shed such sunny light on the decision to buy a home in the Twin Cities but lately that has been the case.  If you’ve been contemplating such a decision, here are 3 great reasons to feel good about your decision and its timing in ascending order. Reason 3: CNBC Ranks Minnesota as a Top State for Business. CNBC’s announcement may seem boring, and it definitely is, but from the perspective of a homebuyer or homeowner, it’s critical.  This is …

Today’s Rate vs. Today’s Rates – Mortgage as a Second Language

The mortgage industry is almost cruelly filled with nearly impossible jargon.  Most of it is inconsequential from the consumer’s perspective and only serves to make communication easier for industry insiders.  However, when it comes to the concept of choosing an interest rate from your lender par rate, buy ups, buy downs, discount points and lender credits are a must know. Definitions: Today’s Rate – “Today’s Rate” is a myth perpetrated as a reality.  It is something the mortgage lending industry came up with because it’s an intellectually condescending industry that doesn’t believe that its clients can do math or understand …

Your Monthly Housing Payment Beyond Principal Interest Taxes and Insurance: Utilities

Nobody wants to be house poor.  Therefore, understanding what your mortgage payment will be when buying a house is only part of what should be considered when contemplating one’s housing costs.  Getting quotes on phone service, security systems, internet and cable are easy enough but utilities like heating and cooling costs can be a little trickier.   Taking these costs into consideration is important though because miscalculation can lead to unexpected payment shock.  Should that payment shock occur, it’s often too late to do much about it so it’s necessary to be proactive. Some of the required seller disclosure items are …

Planning Your Home Purchase With a Mortgage Recast

Often times, seemingly in a fantasyland, home buyers might want to buy their new home first non-contingent on a home sale and sell their retained home shortly after moving into their new one without a financial inconvenience.  They might want to do this to get a better price due to negotiating from a position of strength or it might simply be a matter of logistical convenience.  Whatever the reason, the difficulty arises when they want to use the equity from the home that they’d be selling to achieve a lower payment on their mortgage for their new home.  Most would …

A Permanent Extension of the Private Mortgage Insurance Deduction?

The tax deduction on private mortgage insurance has been bounced around like hot potato ever since 2007. The problem with the lack of predictability in tax deductibility of mortgage insurance is that when people are make decision on which of the four types of mortgage insurance they want on their loan, it’s typically with long term considerations in mind.  This lack of certainty has turned some mortgage insurance decisions into guesswork.  To date, the tax code has provided no long term predictability to aid the consumer in this important and difficult decision. With the help of Senators Debbie Stabenow and Mike …

Your Rental Rate: Too High, Too Low – Rent vs Own Home Calculator

Every time we read an article online about taking a more analytical approach to deciding whether or not to buy a home, you’ll always get comments about how “personal” or “emotional” the decision is but if you’ve found this page, that’s not why you’re here.  You’re looking for a “left brain” experience and you’re going to get it. When analyzing a decision on a move, it’s important to know the variables, have all the tools and take the whole decision under consideration.  It can be frustrating poking around all over the internet to find these facts, tools and calculators so …

Developing a Lease-to-Own Market

A lease-to-own (LTO) transaction is one in which a potential home buyer occupies the home as a tenant but has an option to purchase it within a specified period at a specified price. In exchange, the potential buyer pays a non-refundable option fee upfront plus a monthly rent. In a recent article, I noted the intense interest in LTO deals today by wannabe home buyers who can’t qualify for the mortgage they need to make a purchase now. Despite the large demand, not many LTO deals are being done. They are very complicated and most potential buyers and sellers don’t …

The Home Buyers Scouting Report® Mobile App is Here!

The Home Buyers Scouting Report® is now mobile. From the browser on your mobile phone, if you type in www.homescouting.com, you’ll see that your scouting report is now mobile friendly. From an iPhone, Android or Blackberry you should bookmark the page and add a bookmark icon to one of your home screens. You can also get the apps from the Apple Store or Google Play: For tutorials on the mobile Home Scouting app, click here. If you need mortgage calculators on the go, pull up http://calculators.charlesdailey.com/ in your mobile browser and bookmark it .  Should you want rate quotes on …

How to Choose and Calculate Your Private Mortgage Insurance (PMI)

Saving an eighth of a percent on interest rate can save a little on your monthly payment and shopping around on closing costs can save a little on your down payment but perhaps the most overlooked and costly mistake when buying a home is not choosing the right mortgage insurance if the down payment is less than 20%.  The wrong decision on this choice can cost thousands of dollars. Let’s take a generic purchase of 200,000 dollars with the minimum down payment and compare them but before that, here are some definitions that you’ll need: Borrower Paid Monthly Mortgage Insurance …

Minnesota Mortgage Refinance and Purchase Mortgage Calculators

You are in your jammies, its 1:00 AM and visions of new homes are dancing in your head.  How much is this going to cost?  What interest rate will you get?  Who are you gonna call?  No need, my friend…the internet has got you covered! Information is GOLDEN.  And if you are like most, you are a do-it-yourself-er (DIY).  You want and expect information at your fingertips until you reach a certain point in the home buying process. I GET THAT. Most people prefer to browse and learn online before shopping with the aid of a real estate or lending …

Can You Qualify in Today’s Market? Introducing the Professor’s Mortgage Qualification Tool

Reblogged with Permission VIA: http://www.mtgprofessor.com/Qualification/About_the_Qualification_Page.html Posted October 29th, 2011 View the Mortgage Qualification Tool One major difference between the housing finance system today and the system that prevailed prior to the financial crisis is in loan underwriting — the set of rules and procedures governing who is approved for a loan and who is rejected. The swing has been from lady bountiful to Mr. Scrooge. Rules have been tightened across the board. Where the major mistake before the crisis was approving loans to borrowers who should have been rejected, the major mistake today is rejecting loans that should be accepted. …

Understanding Your Mortgage Costs and Fees on Minnesota Loans

Mortgage fees can be difficult to understand.  Often times fees exist for things that don’t match what they are named, sometimes they are omitted or expectations can be mismanaged.  A lack of clarity, omissions and mismanaged expectations will always lead to a poor experience and worse yet, a loan that is inferior to what you could have had.  It’s important to make sure that they are clearly understood, presented accurately and can be relied upon throughout your transaction.  This video does not seek to interpret how other companies represent their closing costs.  It has been prepared for you, iLoan’s customer …

Monthly Private Mortgage Insurance – It Doesn’t Make Any Sense. . .

Few know that there are more than 22 different types of private mortgage insurance that can be used what a homebuyer puts less than 20% down on a conventional loan.  Most assume they’ll be saddled with monthly mortgage insurance which, more often than not, makes the least mathematical sense.  A different application of private mortgage insurance to a conventional loan can reduce monthly payments, add tax advantages, increasing a homebuyer’s purchasing power and save many thousands of dollars. As though there isn’t already enough to know, real estate professionals need to know the differences between the mortgage insurance providers (i.e. …