A great way to buy your first Indiana home - 01/27/09 01:15 PM
I was sitting in a class last night after speaking to a few local Real Estate Agents about buying foreclosed homes and some multi-units.  I had one of those moments of clarity and I am not sure why I had not thought of it before.
Her monthly was payment was $499 and that does not include taxes or insurance, but the renters paid nearly 75% of her monthly payment.  Now, are you tired of renting?  Would you like your monthly living expense to go down?
Really, with the higher loan amounts for NW Indiana.  You could buy yourself a heck of … (2 comments)

The Power of Twitter - 01/23/09 12:30 PM
I am a squeaky wheel, and you know what happens to the squeaky wheel.
Well, it is either oiled or taken off the wagon.  Well, I like to get oiled, and I have been having an issue with Best Buy.  Good company, but they have their issues and I think we all do as we grow, get complacent or hire high school kids.   Hey, nothing against high school kids, but we all know what we were like at that age.
And, I have been banned from Best Buy before over a similar issue, but this is a great to resolve it. 
… (10 comments)

NEW Reg for Indiana Move-up Buyer - 01/23/09 12:25 PM
When an Indiana homeowner sells his home and decides to buy a new one, there are really just 3 basic options for the residence -- sell, keep or rent.Unfortunately, no matter which path is chosen,the Indiana move-up homebuyer will be in need of a home loan and they will find that qualifying for this home loan to be a little more difficult this year than in the past. The guidelines are getting tighter for thos homeownser that will be "carrying two mortgages".Here are some of the changes this spring's Indiana buyers face:   When selling the primary residence:       If you turn … (2 comments)

10 huge Blunders in 2009 - 01/19/09 11:56 AM
I sat down with some friends (colleagues, mentors, knights of the Round table) and we worked on a list of blunder that you can commit in 2009. 
We thought long and hard and we finally did the "10 Huge Blunders in 2009"
Take a look at them and see if you committed any of them in 2008.  I know I did. 
Are you ready for it, 2009 that is, I certainly am. 
I will share with you my goal page here in the next week.
Dave Woodson
 
… (8 comments)

Looking Past the Headlines - 01/16/09 11:51 AM
Looking Past the Headlines
I have preached and preached about the negative news that we get, but they are still up to it and it still makes me mad as a hornet.  In the latest, Mad Mortgage Machine blog and videocast, I go off on the papers a little as they expound and do not give the whole stories and how the banks are requiring more upfront points.
 
Here is the video and the link to the Rest of the Story.  I love Paul Harvey.
 
Dave Woodson
 
 
… (1 comments)

Wait for it...Do it, Do it NOW - 01/15/09 11:57 AM
After a weak holiday shopping season, annual retail sales declined in 2008.  I know we did a smaller Christmas in our family and extended family
 
It is the first time annual Retail Sales declined since the government started tracking the data some 40-odd years ago.
It also gives nod to the notion that the U.S. economy is suffering through a deeper recession than I previously ever thought.  There was a large pullback in spending, especially in December which is the heaviest shopping month, this highlights just how cautious and tentative the nature of the American shopper.
I find it strange … (2 comments)

Hey, Ben Shut Up - 01/14/09 12:39 PM
On Monday, I said...

I had no idea that he would affect the oil markets.  I know gas pricing is affected by what is going on with Israel and Gaza and we all know that if Canada launched missles at the US.  We would tear thema new one.  Why can’t Israel do it.But, I digress,  as Big Ben spoke, he noted that the simulus package would be a huge help in getting the US out of recession just a bit quicker than originally thought.  The oil speculators took that as a sign to bang away oil futures.  And, OPEC who … (4 comments)

5 is the new 3.6 - 01/14/09 12:32 PM
I have often touted the benefit of Indiana home ownership is the tax benefits. Now, I am not a tax professional. Please consult a local tax professional.
Since, the IRS makes it difficult to understand how the benefits actually work.
Indiana Homeowners have two related tax deductions: 1. annual mortgage interest paid 2. estate tax bills paid
However, not every home owner is eligible. There are some exclusion that include amount borrowed, and whether or the home is a main residence or 2nd home. Which is very popular along the Indiana Shoreline.
The IRS publication is filled with notes and explanations … (1 comments)

Cigar Tax - 01/14/09 12:14 PM
 
I just got this in an email.  Not the greatest news for Cigar smokers, but better than the alternative.
I think I would have quit smoking at a $10 per cigar tax.  No, I would have quit.  I think everyone else would have quit and so this would not even be a tax as no one would partake in the pleasure of a good cigar.  I am curious what the hell our elected officials think some times.  and some of you wonder why I am mad Dave
 
… (2 comments)

Supplying Demand - 01/13/09 06:01 PM
 
Everything we buy is based on Supply and Demand, oil, cars, food, hdtv and even Real Estate.
* If demand outweighs supply, home prices rise (think 2002-2007) * If supply outweighs demand, home prices fall (think last year) So, it was good news for sellers last month that the inventory of “used” homes fell 6% nationally last month.  Less supply often means higher prices.  Think of “Tickle Me Elmo” on Christmas Eve, your kids wants one and you got the means, what are you willing to pay?
And, of the 29 metro areas that are tracked by the real estate … (2 comments)

This Week in Mortgage Backed Bonds - 01/12/09 03:55 PM
In the first full week of 2009 the mortgage backed bond market have traded back-and-forth in a seemingly never ending tug of war and eventually closed the week improved overall.
The weekly mortgage rates have fallen for the first time since mid-December.
The big news of last week was the Friday’s jobs report, and according to governmental press release: the economy shed another 524,000 jobs in December, raising the total job losses for 2008 to 2.065 million.
Making it the largest annual job loss since 1945, and the press reminds us everyday.  What they do not tell you is that we … (2 comments)

A new Fannie, welcome to the new year - 01/10/09 11:39 PM
Even though the effective date is April 1, 2009.  There must be something going on for April Fools Day, like why are these guys still around and hte joke is on us. But, mortgage applicants will start seeing Fannie Mae’s new fee structure (is you are going to take it in the shorts) from lenders Monday the 12th of January.
The big reason why the Fannie Mae mandatory loan fees are hitting lenders so far in advance is because lenders can take up to 30 days to package and sell a loan to Fannie Mae.  So, in effect, this moves the … (5 comments)

The Power of Compound Interest - 01/10/09 11:37 PM
Last year and at the start of this year there were a lot of changes in the mortgage industry.  New rules, new regulations and so on.  It is taking a lot of people by surprise.   I know cause of the calls coming into me this week for people were wanting to be pre-approved to buy a new Indiana house and they have no money down and no one to give them a gift of down payment of 3.5% of the purchase price.
Two of them told me that were waiting for tax refunds or big bonus checks.  Which in it’s self … (1 comments)

My Predictions for 2009... - 01/07/09 12:22 AM
I Predict that… 06 January 2009 | Business, Mortgage, real estate | admin
The New Year is not even a week old but that is not stopping the market “experts” from predicting what’s in store for us in 2009.
The calls on Indiana housing and Indiana mortgage rates run the gamut:
* Home prices will fall more * Home prices have hit bottom * Mortgage rates will dip just a bit more * Mortgage rates will rise a lot
If you put it all together it is pretty clear that the “so-called” experts have no clue what the future holds for … (5 comments)

Important Indiana FHA Change - 01/06/09 01:31 PM
All Indiana loans: (FHA, VA, Conventional) A Credit report must be dated within 60 days of final loan approval.  May be 120/180 days old at time of close.
Effective immediately Indiana FHA: We are seeing an influx of building on own land.  We have to do it as a purchase.  However, this loan can be closed as a refinance if there is no builder involved.  Please remember these type of loans require an enhanced desk review on EVERY loan.
All Manual UnderWrites: Minimum allowed FICO score is 620, but this is a case by case basis Indiana FHA Cashout refis: approved … (0 comments)

Indiana FHA Refi and streamline Changes now in effect - 01/03/09 02:11 AM
Changes have come to an Indiana FHA Lender near you.  The HUD Mortgagee Letter 08-40 gives us changes to Indiana FHA refinances and are effective January 1st.   This Mad Mortgage Machine update will include guidelines that are not being changed, but I have listed them anyway as a review for those Average Joe LOs that read my blog and a refresher to the rest of you already familiar with FHA guidelines. 
 
 
There are 10 Things that you really need know about the recently updated Indiana FHA Refinance Guidelines:
 
1. The max LTV for rate & term Indiana refinances (including … (2 comments)

Indiana Loan Limits for 2009 - 01/02/09 11:51 AM
As part of the Economic Stimulus Act of 2008, Congress had authorized a conforming loan limit increase in “high-cost” areas around the country. This really does not affect NW Indiana.  Versus the national conforming loan limit of $417,000, for example, a Manhattan home buyer could secure a 2008 mortgage for $725,000 and still be within “conforming” guidelines.
Effective January 1, however, those limits rolled back.  Conforming mortgages in the 59 designated high-cost regions are now capped at $625,500.
The 2009 conforming Indiana Home Loan limits will remain unchanged from 2008.
1-unit properties : $417,000 2-unit properties : $533,850 3-unit properties : … (1 comments)