With summer right around the corner, thoughts of outdoor entertainment and a sparkling pool can become a reality with the right planning — and the right loan.

Yes, there’s a loan that covers sprucing up your pool, adding an outdoor kitchen and expanding your home entertainment center – it’s the Fannie Mae HomeStyle Renovation loan program – and it covers luxury items and improvements when other programs say “no way”.

Use it for improving your current home.

You can do those luxury backyard upgrades you’ve always wanted. Plus, carry the improvements to inside your home and replace outdated flooring, baths and kitchens, too.

This is a conventional loan which means the loan amount can go up to $417,000.00 and has a low down payment of 5%. Best of all unlike the FHA Rehab loans, luxury items ARE ALLOWED with the HomeStyle loan. This means that not only landscaping and new decking are allowed but with this loan you may add a pool, renovate an existing pool add an outdoor kitchen and even a sauna.

Use it to purchase and update a new family home.

There is no better time to remodel than before you actually move in. You can fully customize the home to your personal taste, do repairs and updates all at the same time – then move right in and enjoy. Maybe it has the perfect back yard but has required foundation and roof repairs. Not to worry, these can all be fixed using the HomeStyle loan too.

Investors welcome!

If you are an investor considering a property that needs a little work – the Fannie Mae HomeStyle loan is your answer as well.

At closing, all funds for renovation will be held in escrow in an interest-bearing account. After all renovation work is complete, any remaining funds in the escrow account will be used to pay down the principal balance of the mortgage.

Fannie Mae HomeStyle Renovation Mortgage Highlights:

• Up to 95% LTV for owner occupied / 75% LTV for investment
• Gift funds allowed
• Renovation funds escrowed in an interest bearing account
• Multi-dwelling units and Condos are allowed (may be subject to additional requirements)
• Soft costs (architectural services, engineering, permit fees, etc.) may be financed
• Loans are underwritten to FNMA guidelines
• Credit score minimums range based on LTV requirements and income documentation requirements
• Pool and luxury item installation or repair allowed
• Mortgage insurance requirements are based on the LTV calculated using the after-improved value
• The HomeStyle Program is available for refinancing options as well as purchase financing

With the HomeStyle Renovation Mortgage – you can basically do any kind of repairs as long as the appraised value can support the repairs or improvements are common for the area. The repairs must be completed within 120 days and cannot be more than 50% of the final appraised value.

Looking for a home you can jazz with your own personal style? We can help.
We are Collin County real estate veterans and love to work with buyers!
Call North Point to jump-start your search 214-212-6770 or CLICK HERE.

There’s no substitute for a knowledgable Loan Officer who specializes in renovation loans. Contact Leesa Sandavol with Prime Lending 972-725-9190 – and tell her I said to call – she is always up to date on the in this highly specialized field. – Norma Wall, Broker

Home builder confidence in the newly-built, single-family housing market remains high.

In March, for the second consecutive month, the National Association of Homebuilders reports the Housing Market Index at 28 — a doubling of the reading from just 6 months ago and, along with last month, the highest HMI value since June 2007.

When home builder confidence reads 50 or better, it reflects favorable builder conditions in the single-family, new home market. Readings below 50 suggest unfavorable builder conditions.

The HMI itself is a composite reading. It’s the result of three separate surveys sent to home builders by the trade association. The NAHB asks builders to report on their current single-family home sales volume; their projected single-family home sales volume for the next 6 months; and, their current buyer “foot traffic”.

Approximately 400 surveys are returned each month. The results are compiled into the NAHB Housing Market Index.

In March, home builders provided mixed replies to the survey questions :

• Current Single-Family Sales : 29 (-1 from February)
• Projected Single-Family Sales : 36 (+2 from February)
• Buyer Foot Traffic : 22 (Unchanged from February)

It’s noteworthy, despite slowing sales in March, that home builders expect a surge in new home sales over the next 6 months. The reasons for this are several and should be of interest to today’s home buyers.

First, the jobs market is heating up. The U.S. economy has added more than 1 net new million jobs over the last 6 months and that is increasing the pool of potential home buyers in Texas and nationwide.

Second, the housing market, in general, is improving. Home sales are brisk in many U.S. markets and home supplies are dropping. This creates pressure on home prices to rise.

And, third, low mortgage rates have helped pushed home affordability to all-time highs. More home buyers earning the national median income can afford a median-priced home than at any time in history.

It’s all culminated in a monthly Buyer Foot Traffic reading which, at 22, is nearly triple the foot traffic reading from just three years ago. Home buyers — in Plano and everywhere else — are out in full-force, capitalizing on today’s buyer-friendly market.

If you’re looking to buy new construction in the second half of 2012, consider moving up your time frame. Market conditions are constantly changing, and may move out of your favor. As builder optimism increases, the price you pay for your new home may increase, too.

Start your New Home Search now  - or call us 214-212-6770 with any questions – we work as Buyers Agents and represent your interest with the home builder when it’s time to buy an new home. 

The new, revamped HARP program is now available in Texas and   nationwide. It was officially released Saturday, March 17, 2012 by Fannie Mae and Freddie Mac.

HARP is an acronym. It stands for Home Affordable Refinance Program. HARP is the conforming mortgage loan product meant for “underwater homeowners”. Under the HARP program, homeowners in Allen can get access to today’s low mortgage rates despite having little or no equity whatsoever.

HARP is expected to reach up to 6 million U.S. homeowners who would otherwise be unable to refinance.

HARP is not a new program. It was originally launched in 2009. However, the program’s first iteration reached fewer than 1 million U.S. households because loan risks were high for banks, and loan costs were high for consumers.

With HARP’s re-release — dubbed HARP 2.0 — the government removed many of HARP’s hurdles.

In order to qualify for HARP, homeowners must first meet 3 qualifying criteria.

First, their current mortgage must be backed either Fannie Mae or Freddie Mac. Loans backed by the FHA or VA are ineligible, as are loans backed by private entities. This means jumbo loans and most loans from community banks cannot be refinanced via HARP.

• To check if your loan is Fannie Mae-backed, click here.
• To check if your loan is Freddie Mac-backed, click here.

The second qualification standard for HARP is that all loans to be refinanced must have been securitized by Fannie Mae or Freddie Mac prior to June 1, 2009. Mortgages securitized on, or after, June 1, 2009 are HARP-ineligible.

There are no exceptions to this rule.

And, lastly, the third HARP qualification standard is that the existing mortgage must be accompanied by a strong repayment history. Homeowners must have made the last 6 mortgage payments on-time, and may not have had more than one 30-day late within the last 12 months.

If the above three qualifiers are met, HARP applicants will find mortgage guidelines lenient overall :

• Refinancing into a fixed rate mortgage allows for unlimited loan-to-value
• The standard 7-year “waiting period” after a foreclosure is waived in full
• Except in rare cases, home appraisals aren’t required for HARP

Furthermore, HARP mortgage rates are on par with non-HARP rates. This means that HARP applicants get access to the same mortgage rates and loan fees as non-HARP applicants. There’s no “penalty” for using HARP.

To apply for HARP, check with your loan officer today.

They’ll look better, wear longer, and will be ready to go when winter rolls around again next year.

Here’s what to do.

First, you’ll want to launder your winter clothes before you pack them up — even if they were never worn and/or don’t appear to be soiled. Clothes can sometimes have spots or stains that aren’t readily visible. Use unscented detergents, and skip fabric softeners and other additives that could attract insects.

Take items that can’t be washed to the dry cleaner.

Next, you’ll put your clothes into storage containers. Ideally, use bags or boxes that won’t degrade and will seal out dirt, dust, insects and moisture.

Fold clothing neatly before adding it to the container and pack “loosely”, allowing air can circulate. Tuck a lavender or cedar sachet into each container to help repel bugs. Both lavender and cedar are safer for use than mothballs and they smell much better.

For bulky items such as coats, use padded hangers and cover the clothing with heavy plastic wardrobe bags. If you don’t have padded hangers and don’t want to buy them, drape wood hangers with folded towels to fill in the shoulders of your coats without stretching them.

Keep the storage boxes and hangers in a dry place, away from sunlight. Sunlight can fade your fabrics.

Then, make sure to clean your closets thoroughly before filling them with the next season’s clothes. Dust the shelves and ceiling, wipe bars and flat surfaces, and give the floor a good vacuum.

Your closet will be clean and fresh and ready for the new season.

After a series of months during which foreclosure volume was low, total filings have started to rise again, says RealtyTrac.

In February, 21 states posted a year-over-year increase in monthly foreclosure filings, according to the national foreclosure-tracking firm. This is nearly twice as many states as compared to December 2011, marking the highest monthly reading since November 2010.

A “foreclosure filing” is defined to include any one of the following foreclosure-related events : (1) The serving of a default notice, (2) A scheduled home auction, or (3) A bank repossession.

Nationally, the number of foreclosure filings fell 2 percent from January. However, it’s a trend that may reverse. Foreclosure volume is expected to rise over the next few months.

This is because the $25 billion mortgage servicer settlement provides a framework for servicers to execute necessary foreclosures, from notice-to-auction. Some analysts believe that foreclosure filings were artificially depressed in 2011 because of the absence of such guidance.

Like all things in real estate, though, foreclosures remain local.

For example, nationally, there was one foreclosure for every 637 housing units. On a state-by-state basis, however, the results looked different.

• Nevada : 1 foreclosure for every 278 housing units
• California : 1 foreclosure for every 283 housing units
• Arizona : 1 foreclosure for every 312 housing units
• Georgia : 1 foreclosure for every 331 housing units
• Florida : 1 foreclosure for every 341 housing units

Even on a city-by-city level, foreclosure concentration varied. Figures from several select cities include :

• Atlanta : 1 foreclosure for every 244 housing units
• Chicago : 1 foreclosure for every 302 housing units
• New York : 1 foreclosure for every 3,439 housing units
• Seattle : 1 foreclosure for every 1,229 housing units
• Washington : 1 foreclosure for every 1,198 housing units

One reason why foreclosure concentration is worth tracking is because homes in various stage of foreclosure are often sold at deep discounts as compared to similar, non-distressed homes. It’s no wonder foreclosed homes are in high demand among today’s Frisco home buyers.

However, if you plan to buy a foreclosure in Texas , be sure to work with an experienced real estate agent. Foreclosed homes are often sold “as-is”, and may be defective at best and uninhabitable at worst. It makes good sense to have an advocate on your side to help with contracts and inspections.

Will your north Texas home gain value over the next 12 months?

Nobody can know for sure, of course, but should recent housing trends continue, there’s concrete cause for optimism.

The housing economy has suffered since 2007, knocking home values down nearly 20% nationwide. And while some areas have fared better as compared to others but, in general, home values are down.

Mortgage rates are down, too, and that’s good news for buyers. The combination of low rates and low prices has led home affordability to an all-time high. As you’ll hear in this 4-minute interview with NBC’s The Today Show, carrying a mortgage costs 25% less per month as compared to just 3 years ago.

Some other notes from the interview include :

• There are more buyers out looking for homes today, which leads to more sales
• The housing market is expected to get gradually better, month-by-month, in 2012
• Foreclosures will continue to be a big part of the housing market

With housing supplies shrinking, buyers may find their best “deals” today — before the Spring Buying Season begins in February.

However, we can’t forget that housing markets are local — not national. Each town and neighborhood has its own market drivers and prices where you live may have already started to climb.

For accurate, up-to-date data on the housing market, talk with a North Point  real estate agent. We have the later data.

Federal Open Market Committee meeting

The Federal Reserve has released the minutes from its most recent Federal Open Market Committee meeting. The Fed Minutes are a detailed meeting recap; the companion piece to the more brief, more well-known press release.

As a comparison, the minutes of the last FOMC meeting contained 60 paragraphs and 7,027 words. The post-meeting press release was just 5 paragraphs and 382 words.

December’s Fed Minutes shows Fed members with a positive, cautious, take on the economy.

Recent data suggests that the U.S. economy is expanding, the Fed said, but “strains” in global financial markets pose “significant risks” to the downside. This tell us that the Fed believes its economy-stimulating programs are working, but that officials remained concerned by events in the Eurozone.

The U.S. economy could be impacted by fallout.

Other meeting consensus included : 

• On growth : The economy is expanding, despite slowing in “global economic growth”
• On housing : Data suggests the “depressed” market “could be improving”
• On inflation : Prices are stable, and remain within tolerance levels

The Fed’s analysis was of little surprise to Wall Street, and going forward, Fed Chairman Ben Bernanke wants to keep it that way. The Fed Minutes contained a passage regarding market communication, and how the Fed will be more pro-active about it in the future.

With the release of its minutes, in a section called “Market Policy Communications”, the Federal Reserve showed its plans to release 4 times annually its economic forecasts, and plans for the Fed Funds Rate. This signals in a shift in Federal Reserve transparency.

The Federal Reserve will begin including the forecast in its economic projections beginning after its next policy meeting, January 24-25, 2012.

Mortgage rates were little changed after the release of the Fed Minutes.

Home Affordability Impacted by Retail Sales

Consumer spending continues to rise nationwide, fueled by jobs growth and a rosier outlook for the U.S. economy.

Unfortunately for mortgage rate shoppers in Texas, it may also lead to higher mortgage rates later this week.

Thursday morning, the Census Bureau will release its U.S. Retail Sales data for December. The report is expected to show an 18th consecutive monthly increase, with analysts projecting sales volume higher by 0.4 percent from November.

This would be double the increase from last month, which saw a 0.2 percent increase in Retail Sales.

The Retail Sales report tallies receipts collected by retail and food-service stores nationwide. When the sum of these receipts rise, it puts pressure on mortgage rates to do the same. The connection is straight-forward.

Retail Sales are the largest part of “consumer spending” and consumer spending accounts for the majority of the U.S. economy — up to 70 percent, by some estimates.

As the economy goes, so go mortgage rates.

Remember: today’s ultra-low mortgage rates have been partially fueled by weak economies — both domestic and abroad — going back 4 years. Stock markets have sold off as economies have faltered worldwide, leading investors to seek refuge in the relative safety of U.S.-backed mortgage bond market. The new-found demand for mortgage-backed bonds has helped drop mortgage rates to levels never seen in history.

When economic recovery is apparent, therefore, we should expect a mortgage rate reversal, and should expect for it to happen quickly. Stock markets should rise; bond markets should fall. Mortgage rates will climb. Rate shoppers will lose.

Last week’s strong jobs report sparked hope for the U.S. economy. If Thursday Retail Sales data reveals similar strength, the risk in “floating” your mortgage rate may be too great. The safer play is to lock your rate today.

The Retail Sales report will be released at 8:30 AM ET.

Mortgages Take Another Hit

If you’ve been shopping for a home or for mortgage, take action now!

Within days, lenders are expected to start collecting Payroll Tax Extension fees from mortgage applicants — say what?

Let me repeat that. Starting soon, nearly all home buyers and refinancing households nationwide will pay higher mortgage loan fees. Congress has made it law.

As if the housing industry has not had a rough enough time, home buyers will pay higher fees — to make-up for the tax loss created by “Tax Relief”.  Again, confusing — what does one have to do with the other?

Here’s why:

13 months ago, as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Congress enacted a one-year cut to FICA payroll taxes.

FICA stands for Federal Insurance Contributions Act. Taxes collected under FICA fund such programs as Social Security and Medicare.

The stimulus plan temporarily lowered tax rates for salaried workers from 6.2% to 4.2%; and for self-employed persons from 12.4% to 10.4%. Effective January 1, 2012, “regular” tax rates were to return.

That is, until late-December 2011. In one of its last moves of the year, Congress passed a temporary, two-month extension to the payroll tax cut, extending it through February 29, 2012. The expected cost to the U.S. Treasury is $33 billion.

To recoup those costs, Congress has turned to Fannie Mae, Freddie Mac and the FHA, aka Healthy, Wealthy and Wise (not!).

They have been ordered to collect new fees on each new mortgage they back, and forward said fees to U.S. Treasury directly. There’s no “workaround” allowed or forgiveness applied — each new loan is subject to the payment.

The rules are listed on page 17 of the law’s final draft, in a section unambiguously titled “Title IV — Mortgage Fees and Premiums”.

And here we go — according to the law :

• Fannie Mae and Freddie Mac must collect an average fee of no less than 10 basis points (0.1%) per new loan
• The FHA must raise its monthly mortgage insurance premiums 10 basis points for all new loans

The expected cost to consumers is no less than $10 monthly per $100,000 borrowed. Some analysts, however, expect Fannie Mae and Freddie Mac to collect more than is minimally required.

This could add an additional $30-50 to your monthly mortgage payment per $100,000 borrowed.

So, if you’ve been shopping for a home or for mortgage, take action now! Within days, lenders are expected to start collecting Payroll Tax Extension fees from mortgage applicants — a move that will cost you money.

Lock today to avoid the big fees. Save yourself money.

Seriously, don’t let this sneak up on you. If you’re on the fence about buying or refinancing, take action now! If you want to know which lender has done a good job for our clients, call me now!
Norma Wall, Broker – 214-212-6770

Start your home search here:

Spills and splatters dot their ceilings; splattered food stuffs line their walls.

To clean your microwave, you can use the harsh chemicals on sale at supermarkets and hardware stores, or you can apply an all-natural approach which yields the same results, with only slightly more preparation time.

The extra time may be worth it, too, considering that the chemicals of an over-the-counter cleaner may seep into your foods over time.

To keep your microwave fresh and clean, using organic materials only, here’s what to do :

1. Gather a microwave safe bowl; 1 1/4 cups of water; a lemon; baking soda; white vinegar; and cleaning cloths.
2. Slice the lemon and place the slices into your bowl. Add the water.
3. Heat the bowl in the microwave for 7 minutes. Leave the microwave door closed for an additional 5 minutes.
4. Remove the bowl (CAUTION : Bowl will be hot).
5. Unplug your microwave from the wall for safety.
6. Remove the microwave’s glass cooking surface and wheel system. Hand wash and set aside to dry.
7. Dip a clean cloth in the lemon water mixture.
8. Wipe down the microwave’s exterior and interior surfaces, remoistening the cloth as required.
9. Moisten a clean cloth with vinegar. Wipe down the microwave door’s interior surface.
10. Replace glass and wheel system, and plug the microwave back in to the wall.

If you find lingering stains in your microwave, mix baking soda with water to form a thick paste. Dip a corner of your cleaning cloth into the paste and apply it to the stain directly, gently rubbing in a circular motion until the stain is gone.

Microwaves should be cleaned at least once weekly for optimal performance.