Deciding to refinance your Texas home is one of your

most important financial decisions ...

There is no more important financial decision you can make than refinancing your present home in Texas. One easy transaction can help you better your long-term finance prospects in many ways:

• Lower your monthly payments by hundreds or even thousands of dollars; 
• Obtain cash to pay off debts, start a retirement plan, pay for college, or a multitude of other uses; 
• Build-up equity more quickly; or 
• Move from an adjustable rate or balloon program to the security of a fixed-rate mortgage.

With so many choices - how can you be sure

you are making the right decision?

Such an important decision should not be left open to chance. With so many Texas Mortgage Programs and interest rate options to choose from, you must have the advice of a professional.  My company has refinanced over 300 million dollars in Texas mortgages and I personally have helped many of those.

I will review your current mortgage situation and give you a series of alternatives with absolutely no cost and no obligation.   If you have already talked to another lender Supreme Lending provides an advisory service called “Second Opinion Program”.  It will help determine if the Texas loan program offered by another Texas lender is the right type of Texas loan program for you.  I will provide this service to you with absolutely no cost and no obligation.

The only way you could lose is by not taking action. Call me at (214) 728-0449 or send an email to John@TexasLoanGuy.com and we can get the process started.

When you Pre-Qualify for a Texas mortgage, remember that you are qualifying for a payment, not for the loan balance.

When a buyer calls me for a Pre-Qualification Letter (also incorrectly called a Pre-Approval letter… because there is a HUGE difference in the two), I explain to them that they are actually qualifying for the payment and no so much the balance of the mortgage. During the call we will review the numbers in detail and I explain to the client that they qualify for a mortgage payment up to $XXXX.XX. The reason I explain to them that its all about the payment is because that is truly what they can afford.

Our job as a Loan Originator is to ensure that your overall Debt-to-Income ratio is low (also called DTI). The DTI is calculated using your Gross Income (before tax) compared to your monthly obligations. These obligations include all items listed on your credit report, your full mortgage payment, and other others dues associated with the home (i.e. Condo or Homeowners Association Dues). This calculation does NOT include your utilities, cable, water, or trash.

Here’s an example…

Recently I had a client qualify for a mortgage of $1350. This was based on a Condo worth $115K. The payment of $1350 included the Principal Mortgage Payment, the Condo Association, and the Annual Taxes.

The home was taken off the market right before the buyer had submitted the offer. The following weekend, the buyer found another Condo they wanted to purchase. This home was actually slightly less in cost so they buyer assumed they would qualify.  Here is where the problem is… Although the Condo itself was cheaper, the Condo Association Dues were $110 higher per month. The overall payment would have been $1410. The buyer no longer qualifies for this Condo even though it’s cheaper than the previous Condo.

Sure, the buyer could put more money down in order to lower the balance even further and help lower the overall mortgage payment. But, had I not explained this to the buyer at the beginning, this could be a very uncomfortable conversation.

When searching for a home, make sure you understand all the qualifications by asking questions to your Mortgage Loan Originator. If the home you are buying does not have Association Dues, you may not run into this issue.  But it could make a huge difference and its best to know the full story before shopping for a home.

As always, if you have any questions about your mortgage, feel free to give me a call or send an email to John@TexasLoanGuy.com  Even if you are not in the state of Texas, I can direct you to a local professional that can assist you further in your state.

I cant say that I have the privilege of knowing Missy Caulk very well. I've only commented on a few blogs and perhaps a few comments on facebook. I certainly know the name though because she is a friend to many. I've only heard good things for the past 3 years I've been a part of Activerain. Bob on the other hand... I've had a chance to hang out with that guy a few times. Great guy! Lots of fun and is always available to answer questions or assist in any way.

By now I am sure many of you have heard about their loss. The below post is wonderfully written by Elizabeth. I wanted to share the links and information with all of you. Every dollar counts. Its a great example of how we are one big family on Activerain. Take a moment, read the details, and write a small check (or paypal) for a few dollars.

Thanks for reading!

I learned two things over the past 2 weeks. The first is to NOT say I'm going to blog when a major holiday is coming up. Clearly I could not stick to the daily blogging and I apologize for that. The good news is that I'll start blogging on a daily basis starting January 2nd.

The second thing I learned is to stop and enjoy the holidays. Sometimes things just get so buys, you don't take the time to just sit back and enjoy it.

We have a house up the street that is ALWAYS decorated and actually dances during the holidays. The light show is played to several holiday songs and really is a joy to watch. For a week, I would just drive by but I swear the family kept adding more and more lights. I finally found myself listening to several songs one night and thought I'd share it with my friends here.

Enjoy!

Reap the tax deductible rewards of home ownership in Texas.

If you’ve purchased, sold or refinanced your home in the past year, tax season is the best time to reap the benefits of being a homeowner! Take advantage of these tax breaks today and you could enjoy a bigger return in April!

Mortgage Interest. For most homeowners, the bulk of your mortgage payment is going towards interest – and that’s a big tax break for you! The mortgage interest on your primary residence is fully tax deductible, unless, of course your loan is more than $1 million.

You can also deduct late payment charges as home mortgage interest as long as the payment was not late due to a specific service received in connection with your home loan. Also, if you pay off your mortgage early and incur a prepayment penalty, you can deduct that penalty as home mortgage interest (subject to the same requirements for late payments).

Property Taxes. Your property taxes - the annual taxes based on the assessed value of your property – can also be deducted. Your mortgage interest statement may list the amount of real estate taxes you paid if your taxes and homeowners' insurance went into an escrow account when you closed on your mortgage. You can also review your cancelled checks to determine your total real estate tax deduction.

Loan Points. Any points you paid to get a better rate on a home loan, are tax deductible in the year you made the purchase as long as:

• The loan is secured by your primary residence and it was used to buy, improve or build the home.
• Paying points is an established business practice in your area;
• The points are computed as a percentage of the loan principal;
• The points are clearly defined on the buyer's settlement statement; and
• You put cash into your home purchase in an amount at least equal to the points you were charged.

Loan Points on a Refi. The points you paid on a refinanced loan may also be tax deductible, however in most cases, the points must be deducted over the life of the new loan. So if you paid $2,000 in points to refinance a 30-year mortgage, you can deduct $5.56 per monthly payment, or a total of $66.72 if you made 12 payments in one year on the new loan.

Interest on a Home Equity Loan. The interest on a home equity loan may be tax deductible up to $100,000. However, if your home equity loan, when combined with your first mortgage amount, increases the debt on your home to an amount more than the property's actual value, you’ll face deductibility limits. In these cases, the IRS allows you to deduct the smaller of interest on a $100,000 loan or your home's value less the amount of your existing mortgage.

Talk with a CPA. I am sharing the information above so that you are aware of your options. It is always best to speak with a CPA regarding what you can and what you cannot write-off for your taxes.

Typically, I do not have any complaints about the Appraisal Process. Ultimately, the Price Listed by the appraiser is based on the sales within the neighborhood over the past 3 months to 1 year.

This week was not a great week for appraisal values in my area. In one situation, the borrower did not currently have Mortgage Insurance (required for loans over 80% of your homes value). The borrower insisted that the home was XXX amount, even though there were signs leaning towards the home being slightly less than that amount.

Well, we moved forward with the understanding that we may need to come up with other alternatives, should the appraised value become less than expected. Sure enough, the home was $20K less than the client anticipated (and even a few thousand less than what we thought the value would be).

Unfortunately, that meant that the borrower would be able to still refinance to a MUCH lower interest rate.... however, because they needed Mortgage Insurance now, much of the savings would be lost because the MI amounts have increased so much (specifically FHA MIP Premiums).

After we ran the numbers again, the overall savings to this client did not justify the interest savings.

For the second client, the home also came in low. But with this situation, we were still able to save the client a ton of money in interest. Sure, they are having to add MI, but they are also combining the 1st and 2nd mortgage, and lowering the interest.

In most cases, I only have Appraisal Issues when it comes to refinancing a home. During purchase transactions, it typically means the buyer/seller need to negotiate on the price a little biit. The other time that an appraisal could mess with a purchase transaction is usually with FHA loans. For FHA Loans, the appraiser must be a little more thorough with thier analysis to ensure the home is in livable condition.

Overall, I have had many good experiences with the new appraisal process (knock on wood). 

This is day #2 of my personal challenge. As I mentioned when I started yesterday, my goal is to blog for at least 30 days straight. They say it takes 21 days to form a habit, so 30 days should really keep my on track.

Today is Thursday, which is Game Day for my son. This is his last year of Middle School and his second year of making the basketball team. Last year he made the B team as a starter (there are three divisions in Middle School - A, B, and C teams). Over the past year he worked on his game, received some private coaching, and has really shown improvement. That being said, he made the A team this year. Not quite a starter, but he's still working on his game and has slowly increased his playing time.

Overall, I am very proud of him because he worked hard to make the A team this year. His hard work has paid off (but still keeping his school work a priority). This past weekend, they had a local tournament between the Middle School 'A' teams. There were two divisions, both with 8 teams. We finished in 4th place, but played very well. There is another tournament in a few weeks, so we will work towards a better outcome next time around.

What I really like is that the school requires the boys to dress in a shirt and tie on game days (hence the picture)

Sorry its so crooked, tried to take a candid shot on his way in. LOL Kids don't like to take pictures first thing in the morning, so I took what I could get. Anyway, this is a great look for the boys on the team, instead of wearing their jersey or sweatshirts.

Have a great day! See you later in the rain!

I see there is another Challenge out there which pushed some Activerain Bloggers to get into the groove again. Since I didnt see the challange initially, I decided that I need to have my own challenge to blog each day.

So, for the next month, I'll accept my own Challenge to sign on and post a story or two. To keep it interesting, I'll be sure to mix it up between business and fun.

Why a blog challenge? Its easy. When I was blogging a long, about a year ago, I was certainly seeing the benefits of blogging. I had Real Estate Agents calling with referrals and clients were finding me online. I have found that Activerain has been HUGE for my business (and still is). I've been able to build some great business relationships, friendships, and added to my client base. In order to maintain and continue to build my business, I'll need to amp up my blogging.

Contrary to what some believe, its not just the business blogs that get attention from clients (however, I am sure that rambling on and on is not the key either). That being said, I am not going to ramble on today, but I did want to let everyone know that I am accepting my challenge because now that holds me accountable. Accountability is the key for me. When Jason Crouch and I started the P90X challenge last year, it was the accountability partner that got me through it. So, now Im relying on my Activerain friends to hold me accountable for blogging on a daily basis. I'm sure no one will send me an email or call me if I don't blog, but the fact that I've put it in writing will hold me accountable.

If you are involved with a current challange and I am not already following your blog, let me know. I'll definitely follow you and add comments. No pressure to subscribe to my blog as I'm going to blog either way :-) One thing is for sure, its not the amount of comments you receive, its the amount of business that blogging brings.

No matter what your challenge is (blogging, business relationships, and/or personal challenges) keep focused and I wish you the all the best. Have a GREAT week and I'll see you in the rain!

Its crazy to think that some people can get away with this. Unfortunately, sites like Trulia are viewed often by buyers/renters. So, for this to happen there does not look good.

Michelle gives all the details below about what happened. Scary to think that a Renter would have to double/triple check on the Rental Management Company or Individual Homeowner.

I guess the only thing to do is that while the landlord is doing a background check on you, you should also do one on them before you write a check for anything.

Its easy points! Plus, its just fun to make a sign, take a picture, and post it to FB. I did it already. Did you?

Kerrie is giving away 500 points if you post your pic to FB by Sunday night. When I made my sign, the computer took the picture backwards. Not sure hot to fix it, but I still posted it. Maybe she will just give me half the points for the attempt.

Are you 'Activerain'?