Karl's Mortgage News, Mortgage Tips, and other stuff.

Pennsylvania: Licensed by the PA Department of Banking as a First Mortgage Banker and licensed pursuant to the PA Secondary Mortgage Loan Act. New Jersey: Licensed by the N. J. Department of Banking and Insurance Maryland: Authorized Mortgage Lender by the State of Maryland Commissioner of Financial Regulation. Florida: Licensed Mortgage Lender by the Florida Office of Financial Regulation. Delaware: Licensed Lender by the Delaware Office of the State Bank Commissioner.

Practical Tips To Enhance Your Financial Freedom

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Mon, 26 Oct 2009 13:33:54 -0500

Practical Tips To Enhance Your Financial Freedom

Fixer-Uppers Made Easy

If you've been passing up on buying a home because of the expense of anticipated cosmetic repairs, you're missing out on a great opportunity. Sure, it used to be that if you bought a home and then applied for a home equity loan to pay for repairs, the result would be two separate loans (or worse, a mortgage plus a short-term loan for repairs that often had a much higher interest rate). This is not the case anymore if you qualify for an FHA Streamlined 203(k) loan.

The Department of Housing and Urban Development's FHA Streamlined 203(k) loan allows qualifying home buyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this product, home buyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser. And the best part is, the additional funds are combined into your mortgage, so you only have to worry about one loan.

There are, of course, rules and guidelines we have to follow, and not every repair qualifies. But if you or anyone you know are interested in taking advantage of this great opportunity, give us a call, and we'll gladly provide you more information about this valuable program.

Unfeasible Fees

Despite the looming crackdown on banks for high overdraft fees, banks are still finding ways to nickel and dime consumers. Here are a couple of painful fees discussed recently by Forbes magazine.

Balance Transfer Fees aren't so balanced when banks charge a fee of between 3 and 5 percent. This means that transferring a balance from a credit card with a 15 percent interest rate to a card with a better rate of 12 percent may not save you anything at all. In fact, depending on your fee, it could cost your more.

Balance Requirement is another costly fee for many consumers with "free" checking or savings accounts. Sure, the bank waives the service charge for maintaining a set minimum balance, but fall below this number and you could be charged up to $8 every time - not to mention the opportunity cost of the money set aside for maintaining your balance in the first place.

Would you pay your broker 25 percent commission? Well, Forbes reported that Bank of America is charging customers from other banks $3 for ATM withdrawals. If your bank charges an additional fee, you're likely paying up to $5, or 25 percent, every time you take 20 bucks from the ATM. Ouch!

School Loan Forgiveness Program

Are you having trouble paying back your federal student loans or you just aren't looking forward to 25 years of monthly payments? Well, according to www.FinAid.com, you could qualify for the government's Loan Forgiveness program, which cancels all or part of qualifying federal student loans based on your work or volunteer service.

Created by The College Cost Reduction and Access Act of 2007, this program is designed to help certain borrowers with their educational expenses. To qualify, you must: perform volunteer work (AmeriCorps., Peace Corps., and Volunteers in Service to America); perform military service; and teach or practice medicine in certain communities.

Ask your Human Resource professional if you qualify or visit FinAid's website.

There's also a Public Service Loan Forgiveness Program that discharges any remaining qualifying educational debt after 10 years of full-time employment in certain positions of public service. Jobs include: emergency management, government (excluding members of Congress), military service, police officers and fire persons, public health workers (including nurses, nurse practitioners, nurses in a clinical setting, and others), public education, early childhood education, social work in a public child or family service agency, and many more.

Social Security Suffers

For the first time in 35 years, it's expected that Social Security beneficiaries will receive no cost of living adjustment (COLA) increase next year. Since the automatic COLA went into effect in 1975, beneficiaries have never failed to receive an increase, raising concerns that millions of beneficiaries will suffer a lowered standard of living since, according to The Kaiser Family Foundation, Medicare Part D (prescription plans) and Medicare Part C plans are expected to increase. In addition, about 60% of Medicare Part D plans are expected to have an annual deductible in 2010 while only 45% had an annual deductible last year.

To address these concerns, legislation has been introduced to provide an increase independent of the automatic benefit adjustment, including H.R. 3557, which seeks to provide a 2010 benefit increase based on the average COLA from the past 10 years. The projected increase in Social Security benefits would average $35 per month, or $420 annually. Congress is also considering creating a one-time payment of up to $250 for singles and $500 for couples.

At the time of the writing of this article, however, no such bills have passed, so it's important to review these programs carefully.

Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

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Mortgage Rate Update

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Thu, 22 Oct 2009 09:15:13 -0500

Mortgage Rate Update

Interest Rates Change Daily

Interest rates change constantly, but it is important to know that rates are cyclical. If rates are currently at historical lows then we know there is a strong probability rates will go up again, and vice versa. Certain economic indicators such as unemployment data, consumer price index, retail sales data, and consumer confidence all have an effect on mortgage interest rates. But the key factor to watch is the relationship between stocks and bonds.

When the economy is slow and the stock market is "bearish," many investors move money out of stocks and into bonds and mortgage-backed securities. This causes mortgage interest rates to go down. When the economy is doing well, the stock market rallies and is considered "bullish." Investors then have a tendency to move their money out of that safe haven of bonds and mortgage-backed securities and back into stocks. As a result, mortgage interest rates go up.

My team and I keep a close eye on mortgage interest rates at all times in an effort to alert our clientele of opportunities to obtain lower financing. Call us for a free evaluation of your current loan program.

Mortgage Interest Rates for Fixed Rate Mortgages*

Rates as of Thursday, 22nd October, 2009:

	Term	Conforming	APR	Payment per $1,000	Jumbo	APR	Payment per $1,000
30-Yr. fixed	360	5.125%	5.257%	$5.44	5.250%	5.339%	$5.52
15-Yr. fixed	180	4.500%	4.723%	$7.65	4.750%	4.900%	$7.78
7-Yr. fixed ARM	360	4.125%	4.250%	$4.85	5.500%	5.590%	$5.68
5-Yr. fixed ARM	360	4.000%	4.124%	$4.77	5.375%	5.465%	$5.60
3-Yr. fixed ARM	360	4.625%	4.753%	$5.14	5.375%	5.465%	$5.60
5-Yr. Interest Only	360	4.000%	4.124%	$3.33	5.875%	5.967%	$4.90
FHA 30-year fixed	360	5.000%	5.131%	$5.37	5.250%	5.339%	$5.52

*Rates are subject to change due to market fluctuations and borrower's eligibility.

Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

609-878-7013

Stop Paying Your Landlord's Mortgage!

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Wed, 21 Oct 2009 07:41:15 -0500

It's staggering when you think about the cost of living, especially if you're a renter and not a home owner. If you are currently paying $1,000 a month for rented housing, then over the next three years, your property management company will effectively have reaped $36,000 of your hard earned cash! You're paying their mortgage when you could be building equity in your own property.

What if I don't have the money to buy a home right now?

There are many loan programs available that offer low and no down payment options. Some programs permit gift money as a down payment, and often sellers are willing to make a contribution to your purchase if they want to sell the home quickly.

There are many benefits of home ownership to consider, most of all, tax deductions. Let's take a look at how advantageous this can be as a homeowner:

How much is tax deductible?

Tax deductions vary, but the IRS has laid out solid rules. They also have several tax publications full of helpful information worth taking the time to read. Publication 530, Tax Information for First-Time Homeowners, is very thorough, as is Publication 936, Home Mortgage Interest Deduction. For quick reference, you can refer to Tax Topics 505, Interest Expense, and 504, Home Mortgage Points.

These publications often refer to local and state guidelines, so you may want to consult a CPA to answer all the questions that arise from reading these materials. Here are a few tips you should know up front:

Real Estate taxes are deductible on a primary residence. Real Estate taxes are paid at settlement or closing, or through an escrow account.

Mortgage interest is deductible on a loan to purchase, build or improve your home. Your lender will provide you with a Mortgage Interest Statement (Form 1098) to list the total interest paid during the year. This should include any deductible points paid for that year.

Pre-paid interest is deductible in the year it is paid. At the close of a real estate transaction, borrowers usually pay for the interest on their loan that falls between the closing period and the first of the next month. Mortgage payments are made "in arrears" so when a loan is closed mid-month, there is interest due to the new lender which must be paid in advance.

If you are building a home, the interest on the construction loan is deductible. The construction period cannot exceed 24 months prior to the date that you move in if you claim this as your primary residence.

Call me to discuss your specific needs and we'll find the program that's right for you.We have a variety of low down payment and no down payment programs available.

Karl Peidl
Accredited Loan Consultant
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

609-878-7013
kpeidl@linc-mort.com
www.karlpeidl.com

Pennsylvania: Licensed by the PA Department of Banking as a First Mortgage Banker and licensed pursuant to the PA Secondary Mortgage Loan Act. New Jersey: Licensed by the N. J. Department of Banking and Insurance Maryland: Authorized Mortgage Lender by the State of Maryland Commissioner of Financial Regulation. Florida: Licensed Mortgage Lender by the Florida Office of Financial Regulation. Delaware: Licensed Lender by the Delaware Office of the State Bank Commissioner.

Treats, Not Tricks Await Those Who Act!

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Mon, 19 Oct 2009 15:05:17 -0500

Treats, Not Tricks Await Those Who Act!

Last chance, last dance, last call. All sayings conjure up images but one thing remains constant. Miss the opportunity and it's gone. Home loan rates recently hit all-time lows, and if you don't act now, you could miss your chance to save thousands of dollars over the life of your loan!

According to Freddie Mac, interest rates recently dropped to all-time lows in some categories, and within a hair of all-time lows in others. We will likely never see rates at these levels again. If you missed the chance to refinance earlier this year, you just got a do-over. Don't miss out a second time!

Why Act Now?

While the reasons to act now are numerous, here are just a few.

No one, not even George Washington, had a chance to borrow money at these rates...but you do!

The Federal Reserve implemented a mortgage-backed securities buying program to artificially lower rates, and that program is nearing its end. The originally scheduled end date was December 31, 2009. While this deadline has been extended the amount of purchases remains the same, which means the level of participation will wane, decreasing by half as much. Rates will be forced to levels seen before the program started, likely near 6.50% and in short order.

Inflation, while currently contained, is likely to show its ugly head as all the stimulus from Washington continues to pour into the system. The end result will be increasing inflation pressure across the board, which will cause all interest rates to rise.

Don't Miss the Boat Here

Sydney Smith, an English clergyman from the 1800's once said, "Regret for the things we did can be tempered with time; it is regret for the things we did not do that is inconsolable."

It is likely that interest rates at these levels will never be seen again in our lifetime. Take advantage of them today while you still can so you'll never have to look back and say, "I wish I had...." If you took advantage of this opportunity earlier this year, congratulations! If not, call me so we can discuss your situation.

Likewise, if you know someone else who can benefit, be it a family member, friend, or co-worker, please have them call me or let me know who they are and I will reach out to them. This could be the greatest gift you could offer someone this year.

I look forward to speaking with you soon, but if not, I hope you have a Happy Halloween!

Karl Peidl

Accredited Loan Consultnat

Lincoln Mortgage Company

251 Bellevue Avenue, Suite 102

Hammonton, NJ 08037

609-878-7013

Mortgage Rate Update

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Thu, 15 Oct 2009 16:55:18 -0500

Mortgage Rate Update :

Preparing Your House for the Market

If you're selling your home, make sure your home has "curb appeal." Remember, you can't change a first impression. If your home looks like a diamond in the rough, think about putting a small investment into cleaning up the outward appearance.

Imagine that you are seeing the property as a potential buyer. You'll want to do a little yard work - clear away dead shrubbery, and trim your trees and lawn. Weed the flower beds or plant some flowers that will bloom in season. Make sure the driveway is not stained, and if you can't afford to paint the home entirely, at least make sure the front door and immediate entryway is immaculate.

Fresh and clean are still the keywords to making a good first impression once the potential buyer walks through the door. Unless a particular window is facing an eyesore or a neighboring building, open the drapes and let the sun shine in! Put your dog in the back yard or garage so he's not jumping on the new people who just walked in.... they might have allergies! There is much you can do to improve the look of your home, without investing a great deal of money.

Call me to get a copy of my pamphlet, "33 Ways to Sell Your Home Fast." I'd be happy to share more tips with you and assist you in obtaining financing for your next home as well.

Mortgage Interest Rates for Fixed Rate Mortgages*

Rates as of Thursday, 15th October, 2009:

	Term	Conforming	APR	Payment per $1,000	Jumbo	APR	Payment per $1,000
30-Yr. fixed	360	5.125%	5.345%	$5.44	5.375%	5.509%	$5.60
15-Yr. fixed	180	4.500%	4.871%	$7.65	4.875%	5.101%	$7.84
7-Yr. fixed ARM	360	4.250%	4.459%	$4.92	6.250%	6.391%	$6.16
5-Yr. fixed ARM	360	4.000%	4.206%	$4.77	6.125%	6.265%	$6.08
3-Yr. fixed ARM	360	4.000%	4.206%	$4.77	6.125%	6.265%	$6.08
5-Yr. Interest Only	360	4.000%	4.206%	$3.33	5.875%	6.013%	$4.90
FHA 30-year fixed	360	5.000%	5.218%	$5.37	5.250%	5.383%	$5.52

*Rates are subject to change due to market fluctuations and borrower's eligibility.

Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

609-878-7013

Mortgage Rate Update

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Thu, 15 Oct 2009 16:54:28 -0500

Mortgage Rate Update :

Preparing Your House for the Market

Mortgage Interest Rates for Fixed Rate Mortgages*

Rates as of Thursday, 15th October, 2009:

	Term	Conforming	APR	Payment per $1,000	Jumbo	APR	Payment per $1,000
30-Yr. fixed	360	5.125%	5.345%	$5.44	5.375%	5.509%	$5.60
15-Yr. fixed	180	4.500%	4.871%	$7.65	4.875%	5.101%	$7.84
7-Yr. fixed ARM	360	4.250%	4.459%	$4.92	6.250%	6.391%	$6.16
5-Yr. fixed ARM	360	4.000%	4.206%	$4.77	6.125%	6.265%	$6.08
3-Yr. fixed ARM	360	4.000%	4.206%	$4.77	6.125%	6.265%	$6.08
5-Yr. Interest Only	360	4.000%	4.206%	$3.33	5.875%	6.013%	$4.90
FHA 30-year fixed	360	5.000%	5.218%	$5.37	5.250%	5.383%	$5.52

*Rates are subject to change due to market fluctuations and borrower's eligibility.

Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

609-878-7013

Mortgage Rate Update

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Thu, 08 Oct 2009 09:42:08 -0500

Mortgage Rate Update & Intermediate Fixed Rate Loans

Intermediate Fixed Rate mortgages (sometimes referred to as Short-Term Fixed Rate mortgages, or Hybrids) come in numerous varieties; the 3, 5, 7 and 10-Year Fixed. These are all 30-year loans that carry a fixed rate for a set number of years, and then roll over to an Adjustable Rate Mortgage.

For example, in a 7-Year Fixed Rate scenario, the rate would be fixed the first seven years, and the loan becomes an Adjustable for the remaining 23 years. The main advantage of these hybrid programs over a traditional 30-Year Fixed loan is typically a slightly lower interest rate.

These types of loans often work well for people who do not plan on being in their home for an extended period of time, such as first time home buyers. The most important question to ask when going into an Intermediate Fixed Mortgage is how long will the borrower need the money?

If the borrower intends to sell the home in four to five years, then a 5-Year Fixed loan offers stability and a lower interest rate for the time that money is needed. However, in this example it would not be wise to pay points up front to obtain a lower interest rate, because the likelihood of recuperating the cost of those points would be diminished with the short tenure in the loan.

The borrower's financial planner and mortgage consultant should work hand-in-hand to provide guidance to the borrower in these matters.

Mortgage Interest Rates for Fixed Rate Mortgages*

Rates as of Thursday, 8th October, 2009:

	Term	Conforming	APR	Payment per $1,000	Jumbo	APR	Payment per $1,000
30-Yr. fixed	360	4.875%	5.092%	$5.29	5.375%	5.509%	$5.60
15-Yr. fixed	180	4.375%	4.745%	$7.59	4.625%	4.849%	$7.71
7-Yr. fixed ARM	360	4.125%	4.332%	$4.85	6.125%	6.265%	$6.08
5-Yr. fixed ARM	360	4.000%	4.206%	$4.77	6.000%	6.139%	$6.00
3-Yr. fixed ARM	360	4.000%	4.206%	$4.77	6.000%	6.139%	$6.00
5-Yr. Interest Only	360	4.000%	4.206%	$3.33	5.125%	5.257%	$4.27
FHA 30-year fixed	360	4.875%	5.092%	$5.29	5.000%	5.131%	$5.37

*Rates are subject to change due to market fluctuations and borrower's eligibility.

Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

609-878-7013

Credit Repair Service: What to Expect

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Wed, 07 Oct 2009 08:38:15 -0500

Credit Repair Service: What to Expect

Google the term "credit repair" and 19 million results are instantly generated. With so much information available, and so much of it conflicting, how do you know which credit repair company is legitimate and which ones are really just looking to take advantage of desperate consumers?

The following are steps you can take to know exactly what to expect from a legitimate credit repair company and the valuable services they provide:

Get a referral from your mortgage professional. Not only do we work with credit repair specialists on a regular basis, our business depends on your success. It's in our best interest to make sure you are represented by professionals who are experienced in dealing with creditors, the credit bureaus, and collection agencies.

Interview your candidates. Make sure they understand and can explain to you how credit scores are calculated. Remember the 5 factors that make up a credit score that we discussed in a previous article? Without a detailed knowledge of the specific elements that make up your credit score, how can they possibly create a successful strategy to increase your score?

Don't believe the hype. Credit repair takes time. Don't fall for advertisements from companies promising miracles in just a few days or weeks. Remember, it took time for your score to get where it is, and it will take a legitimate credit professional time to fix it, depending on your situation. For the most part, expect 3 to 6 months for the best results, and up to a year or more if you have more serious problems like bankruptcies or identity-theft issues.

Don't spend more than $1,500. Depending on your situation, expect to spend between $800 and $1,500 for a legitimate credit repair company. Again, if you have serious credit challenges such as charge offs, collections, public records or identity theft issues, expect to be in the higher range and vice versa. In today's market, where FICO scores one point below 740 could cost you thousands of dollars in interest and monthly payments, you'll be glad you made this investment in your financial future.

Monitor your progress. Be sure to communicate with both your mortgage professional and your credit repair representative throughout the process. To ensure success, we all need to be on the same page. With the right team of professionals, you can expect your credit score to increase between 10 to 220 points over the course of 6 weeks to 6 months. That's going to save you a lot of money on your mortgage, credit cards, auto loans, and even student loans.

Credit repair is a valuable, worthwhile service when you're working with the right company. If you have questions about credit repair and how it affects your chances of securing a mortgage or refinance, don't hesitate to call. We'll be glad to review your credit and see what, if anything, needs to be done to help you meet your financial goals and needs.

If you or anyone you know has any questions about credit scores or what can be done to repair them, please don't hesitate to call.

Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

609-878-7013

Quick Tips For Getting Started on Your Home Purchase

Refinancing in Hammonton, NJ: Five Reasons to Refinance Your Mortgage

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Mon, 05 Oct 2009 11:16:09 -0500

Refinancing in Hammonton, NJ:

Five Reasons to Refinance Your Mortgage

There is an old adage in the mortgage business that states that if you can improve your interest rate by at least two percentage points, then it is a good time to refinance. While that may work as a general rule of thumb, the truth is that there are many reasons to refinance. Here are a few:

Lower your interest rate.
Securing a lower interest rate is one of the top reasons for refinancing. This can make a big difference in your monthly out-of-pocket costs for housing and save money on financing fees.

Build equity faster.
If you are in a position to make higher monthly payments due to an increase in salary or other good fortune, you may want to switch from a 30-year loan program into a 15- or 20-year loan structure. This enables you to build equity faster and save a tremendous amount of money on financing fees.

Change your loan program.
Some homeowners who start out in an Adjustable Rate Mortgage (ARM) find that they would like to switch to the stability of a Fixed Rate mortgage at some point. An ARM may have been the most attractive rate and loan package when you first financed your home, but we can provide you with loan comparison charts to find out if you can save money with another type of loan program that might work better for you right now.

Credit score has improved.
If your credit score has improved as a result of making your mortgage payments on time and in full, you may be in a position to take advantage of your improved credit standing. We can review your current credit score, the terms of your existing mortgage, and review options for other loan programs that could not only reduce your monthly payment, but also save you money on interest fees paid over the life of the loan.

Use the equity you have established.
A cash-out refinance allows you to tap into the equity you have built up in your home. You may want to pay off revolving credit card accounts, send a child to college, or use the money for home improvements or personal expenses.

Regardless of your reasons for wanting to refinance your existing mortgage, my team and I are interested in helping you make a decision that works best for you. We present our clients with spreadsheets outlining the various programs available. We continually monitor rates and alert our clients of interest rate changes in order to inform them of the best time to refinance.

We will also review the terms of your existing mortgage program. It is important to consider whether or not you have a pre-payment penalty written into your existing loan, and what the purpose of the refinance is. It is also important for us to know how long you plan to stay in the home. This helps us to determine whether or not it is beneficial for you to pay points up front to secure a lower interest rate on your new financing. The lender will want to know what the current property value is, how much equity you have built up, and what your current credit score is.

Credit Tips That Will Score Lower Interest Rates

Shopping For The Right Mortgage

Call me directly for a free consultation.

Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

609-878-7013

kpeidl@supmort.com

www.karlpeidl.com

Buying Your First Home Memories and Money Await You

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Sat, 26 Sep 2009 12:01:04 -0500

Buying Your First Home
Memories and Money Await You

First-time homebuyers (FTHB) are taking advantage of one of the best real estate environments we have ever seen. Home affordability this year has been at an all time high with low interest rates and declining home prices. However, buyers on the fence should not be complacent.

Home prices in many markets have not only stabilized but are rising. Interest rates, while still incredibly attractive, could be poised to rise in coming months as stimulus from Washington is scheduled to end in December. Finally, the tax credit of $8,000 for qualifying FTHBs is currently scheduled to end November 30, 2009.

Why Buy a Home?
One of the first questions someone naturally asks themselves as a renter is, "Why should I become a homeowner?" There are many reasons, but probably the first one is the pride in knowing that you have established a foundation for building personal wealth as well as a basis for future memories.

Thinking back to your childhood, many of your fondest memories may be from events in your childhood home. Holidays, birthdays, and family events all typically took place in your home growing up. Anything you and your parents wanted to do to your home, within reason of course, were options of your choosing.

Knowing that you have taken a major step in financial independence also creates a sense of pride that few things can replicate. However, it's one thing to say owning a home makes sense, it's another to actually look at how owning a home can help you financially.

Financial Reasons to Buy
Aside from the emotional implications, any decision involving money has to make sense. There are few things anyone can do that have a greater impact on their finances than owning a home.

The reasons to buy your first home are numerous, not only today, but anytime. In a comparison of renters versus homeowners, the U.S. Federal Reserve Board of Consumer Finance found that the average net worth of renters was $4,000 compared to homeowners at $184,400.

Building personal wealth can be accomplished a number of ways but owning a home provides a path that takes advantage of several ways at once, compounding their net impact on your bottom line. Increasing equity leveraged from the reduction of mortgage debt and home price appreciation are one path. Income tax deductions both from the sale and ownership of the property are another.

Move in and Watch it Grow
What do a tree and the impact of owning a home on personal wealth have in common? Neither grow quickly but both grow larger and become stronger over time. A home purchased today at a price of $150,000 will grow in value to $364,000 over 30 years at an appreciation rate of just 3%.

While the impact of home values over the last three years can not be ignored, during the period from 1950-2002, U.S. home prices appreciated at an annual growth rate of 4.8%, or significantly greater than the example just given.

The Impact on Your Wallet - Today
Owning a home creates a number of items that can result in both an immediate and long lasting boost to your wallet. The first is time sensitive and needs to be acted on quickly to benefit.

Income Tax Credit. The income tax credit available from the IRS for up to $8,000 for qualifying FTHBs is scheduled to end November 30, 2009.

Points Pay Twice. Many buyers today are opting to pay points to lower their interest rate. In some cases, this can be a negotiated expense that the seller may pay to incentivize you to purchase their home. Points paid to lower an interest rate are considered pre-paid interest by the IRS and would result in an income tax deduction for the buyer, regardless of who pays it.

Mortgage Interest. One of the largest tax deductions most people report each year is the amount of interest they pay on their mortgage. While not exact, on a $150,000 mortgage with an interest rate of 5.50%, the amount of the first year's interest would be approximately $8,000. For a family earning $70,000 in a federal tax bracket of 25%, this amounts to a significant savings, effectively reducing the amount of a homeowner's monthly mortgage payment. For those that pay state income taxes, the impact is even greater.

Private Mortgage Insurance (PMI). PMI is insurance that is mandated by a lender when the amount of a down payment is less than 20% of the purchase price. The purpose of PMI is to protect the lender in the event a borrower later falls into default and the home falls into foreclosure. PMI under most circumstances is a tax deductible expense. Consult your tax advisor for more details.

Real Estate Taxes. Property taxes, which can be normally included in the monthly mortgage payment to your lender are a deductible expense. This deduction also effectively reduces the monthly mortgage payment for the borrower at tax time.

Possibly More Dough. These are not the only expenses that can be deducted from your income at tax time. Other items can include moving expenses associated with a job relocation and home improvements that are deemed energy efficient as determined by the Recovery Act. As always, consult with your tax advisor for specific details about how each type of deduction mentioned in this article could apply to your situation.

Act Now and Plan Accordingly
If you or someone you know plans on purchasing a home in time to take advantage of the tax credit, there are some things to keep in mind. The last day to close to take advantage of the tax credit is Monday, November 30, 2009. Keep in mind, this follows Thanksgiving week. With the holiday offering a shortened work week for many, this will make closing at the end of the month more challenging.

Another item to take into consideration is recent legislation impacting a lender. If the Annual Percentage Rate, or APR, changes by more than .125% from the time of initial application, the lender is required to re-disclose the Truth in Lending statement. When this document must be re-disclosed, time must be allowed for a home buyer to receive the document in the mail and review it for approval.

One way to minimize any need to re-disclose your loan documents is to either lock early in the application process at the interest rate on the loan application or submit an initial loan application with a higher-than-current-market interest rate. So, if current rates are 5.50%, your mortgage professional may suggest your application reflect an interest rate of 5.75% for underwriting and initial loan disclosures.

A prudent buyer may plan for closing to occur no later than November 20, 2009 to allow for any possible delay and still take advantage of the tax credit before it expires on November 30. Another prudent decision would be to allow a minimum of 45 days to get your loan approved and closed. Just be sure that when you lock your interest rate, you allow for a cushion in your lock expiration date in the event your closing is delayed.

This would mean that, for your protection, you should work to get your home under contract not later than October 6, 2009. While we may still be able to accommodate a later purchase contract signing, submitting your application earlier is advisable due to the volume of applications lenders may receive during this time.

Best Path to Take Now
Buying a home today could be the best financial decision a renter can make. Not only does this decision help turn a residence into a home, it establishes a foundation for future personal wealth, both immediately and over time.

To decide what works best for you or someone you know, get pre-approved today so you know exactly what you may qualify for both in purchase price and monthly payment. This one action can remove a lot of stress and simplify the home search process since you will know what you can afford.

Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

609-878-7013

Mortgage Rate Update

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Thu, 24 Sep 2009 14:32:34 -0500

Mortgage Rate Update

15-Year Fixed Rate Loans

A 15-Year Fixed Rate loan works well for borrowers who are nearing retirement and want to be debt-free when they get there. Because payments in a 15-year scenario are amortized over half the length of a 30-Year Fixed Rate loan, the monthly payments will be significantly higher in comparison. This is an important factor to consider before committing to a 15-year loan. However, the interest rate on a 15-Year Fixed Rate loan will be lower for the same reason - financing for 15 years costs much less than financing for 30 years.

If a borrower is 50 years old and would like to be debt-free when retiring at age 65, then a 15-Year Fixed Rate loan will allow the borrower to meet that goal as far as their mortgage is concerned. However, if there is any question as to whether the borrower will be able to commit to the higher monthly payment, the alternative is to take a 30-Year Fixed Rate mortgage and make pre-payments with some consistency. If the borrower has the discipline to make those extra payments whenever possible, he or she can still attempt to meet the same goal.

I prefer to educate my borrowers so they can compare the benefits of each program and have the opportunity to review loan options with their financial advisors.

Mortgage Interest Rates*

Rates as of Thursday, 24th September, 2009:

	Conforming	APR	Payment per $1,000	Jumbo	APR	Payment per $1,000
30-Yr. fixed	5.000%	5.218%	$5.37	5.375%	5.598%	$5.60
15-Yr. fixed	4.375%	4.745%	$7.59	4.875%	5.250%	$7.84
7-Yr. fixed ARM	4.250%	4.459%	$4.92	6.375%	6.612%	$6.24
5-Yr. fixed ARM	4.125%	4.332%	$4.85	6.000%	6.232%	$6.00
3-Yr. fixed ARM	4.000%	4.206%	$4.77	6.000%	6.232%	$6.00
5-Yr. Interest Only	4.125%	4.332%	$3.44	5.125%	5.345%	$4.27
FHA 30-year fixed	5.000%	5.218%	$5.37	5.250%	5.472%	$5.52

*Rates are subject to change due to market fluctuations and borrower's eligibility.

Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

Accredited Loan Consultant

609-878-7013

FHA Appraisal and Lender Eligibility Update

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Tue, 22 Sep 2009 14:27:03 -0500

FHA Appraisal and Lender Eligibility Update

Explained by Jeff Mifsud, this update contains the pertinent changes to Appraiser and Lender Eligibility guides as outlined in Mortgage Letters 2009-28, 29, 30 and 31.

Here are the 8 things you need to know about these changes:

Appraisers

Changes are effective as of January 1st, 2010.
Mortgage brokers and commission based lender staff are now PROHIBITED from selecting the FHA appraiser.
Lenders are not required to use Appraisal Management Companies, but may do so.
When a borrower switches to another lender, FHA prohibits the 2nd lender from ordering additional appraisals to obtain a higher value, unless: a. The DE Underwriter determines the 1st appraisal is deficient, b. The Appraiser of 1st appraisal is on 2nd lender's exclusionary list, or c. First lender delayed the appraisal transfer to the 2nd lender so as to cause a harm to the borrower, e.g. missing a closing date, or expiration of a rate lock.
Appraisals are now valid for only 120 days for all existing and proposed or under construction properties.

Lender Eligibility

Changes are effective as May 20th, 2009 in accordance with the Helping Families Save Their Homes Act of 2009.
A Lender or Mortgagee applying for FHA approval may not currently employ anyone who is currently suspended, debarred, under indictment, under investigation by HUD, or was convicted or pled guilty to a felony related to the real estate or mortgage industries during the 7 year period prior to the date of the application or any time if felony involved fraud, dishonesty, breach of trust, or money laundering.
FHA lenders must use their HUD registered name in all advertisements and promotional materials and keep copies of all materials for 2 years from date of use.

Previous FHA changes

Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

609-878-7013

Quick Tips for Getting Started on Your Home Purchase

Contingencies in real estate contracts

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Mon, 21 Sep 2009 12:59:01 -0500

Contingencies in real estate contracts

In real estate contracts the contingency is a common element. Contingencies are clauses in a contract that give either the buyer or seller a way to get out of the contract if certain conditions or timelines aren't met. A commonly used example is that of a buyer making an offer on a new home before selling his existing home. The buyer needs to sell his present home before being able to get financing on the new one. So he makes his offer contingent upon the sale of his existing home. There will always be a time period associated with such a contingency. If the buyer is able to get his present home sold within that time period, the deal can go forward. But if he fails to sell within the specified time period, the seller has the option of getting out of the deal. In most cases, sellers won't accept this kind of contingency, because they will most likely feel that they can find another buyer capable of closing the deal without needing to sell another home first. But new home builders are often willing to accept an offer contingent upon the sale of an existing home.

Every contract can be unique. The possibilities for contingencies are virtually endless. Some of the more commonly used contingencies would include:

Financing. Contingencies that depend on the buyer being able to obtain financing are very common.

Home Inspections. Probably the most common type of contingency is the "contingent upon satisfactory completion of inspection". There are any number of specific types of inspection for which a contingency might be included in a contract. Some of the more common would include inspection by a qualified home inspector for hidden defects, pest inspections, water and sewage system inspections, inspections dealing with the presence of radon or mold, etc.

Appraisal. It's not unusual for a buyer to have a contingency that allows for a formal appraised value at or above purchase price. Since lenders will nearly always want an appraisal performed too, sellers usually don't have a problem with this.

Remember, just like everything else in real estate contracts, contingencies are negotiable. Always take care before signing that you are comfortable with all contingencies included in your contract. Likewise, take time to think about what contingencies you might like to have added.

Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

609-878-7013

ARM Indexes: A 10-Year Comparison

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Sat, 19 Sep 2009 10:11:41 -0500

ARM Indexes: A 10-Year Comparison

Karl Peidl

Lincoln Mortgage Company

251 Bellevue Avenue, Suite 102

Hammonton, NJ 08037

609-878-7013

First-Time Home Buyers: 12 Things You Must Do

Licensed Mortgage Banker, NJ Department of Banking and Insurance. Licensed Mortgage Banker NYS Banking Department. Licensed by the PA Department of Banking and pursuant to the Secondary Mortgage Loan Act. Not an offer to enter an interest rate lock-in agreement under MN law. MA Licensed Lender #MC3208. GA Residential Mortgage License #14511. Corporation also operates as Superior Home Mortgage Corp. and services CO, CT, DE, FL, IN, MD, MI, MN, NC, SC, TN, VA, WI.

Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

© Copyright 2009. All About News, Inc.

The Home Buyer Checklist

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Fri, 18 Sep 2009 09:43:57 -0500

The Home Buyer Checklist identifies some of the important factors to consider when choosing a home. In addition to an affordable sales price, you will also want to be sure that the neighborhood and house meet the needs of your family.

Take this checklist along when you go shopping for your house. It will help you evaluate the neighborhoods and assess the availability and condition of various features of up to three homes in a side-by-side comparison.

Home Buyer checklist	1	2	3
Property Address	.	.	.
Asking Price	$	$	$
Real Estate Taxes	$	$	$
The Neighborhood
Near Work	.	.	.
Near Schools	.	.	.
Near Shopping	.	.	.
Near Expressways	.	.	.
Near Public Transportation	.	.	.
Near Doctors / Dentists	.	.	.
Near Churches	.	.	.
Garbage Collection	.	.	.
Street Lights	.	.	.
Sidewalks	.	.	.
Streets / Alleys Well Maintained	.	.	.
Traffic Volume	.	.	.
Parks	.	.	.
Neighbor's Property Well Maintained	.	.	.
All Utilities Installed	.	.	.
Neighborhood / Restrictions	.	.	.
Near Trains / Airports	.	.	.
Area Zoned Residential	.	.	.
Near Industry	.	.	.
Proposed Special Assessments	.	.	.
Environment Concerns / Influences	.	.	.
The House
Age of House	.	.	.
No. of Stories	.	.	.
Wood Frame	.	.	.
Brick Frame	.	.	.
Wood & Brick Frame	.	.	.
Aluminum Siding	.	.	.
Roof Condition	.	.	.
Foundation Condition	.	.	.
Overall Exterior Condition	.	.	.
Garage Size	.	.	.
No. of Bathrooms	.	.	.
No. of Closets	.	.	.
No. of Bedrooms	.	.	.
Oil Heat	.	.	.
Gas Heat	.	.	.
Electric Heat	.	.	.
Hot Water Heat	.	.	.
Insulation	.	.	.
Central Air Conditioning	.	.	.
Energy-Conservation Features	.	.	.
Age of Heating System	.	.	.
Age of Water Heater	.	.	.
Capacity of Water Heater	.	.	.
Age of Electrical Wiring	.	.	.
Plumbing Condition	.	.	.
Estimated Water Bill	$	$	$
Estimated Heating Bill	$	$	$
Estimated Electric Bill	$	$	$
Living Room	.	.	.
Fireplace	.	.	.
Separate Dining Room	.	.	.
Family Room	.	.	.
Drapes - No. of Rooms	.	.	.
Carpeting - No. of Rooms	.	.	.
Kitchen Eating Area	.	.	.
Refrigerator	.	.	.
Stove / Oven (Gas / Electric)	.	.	.
Garbage Disposal	.	.	.
Dishwasher	.	.	.
Broken Windows	.	.	.
Storm Windows / Screens	.	.	.
Washer / Dryer Outlets	.	.	.
Laundry Space	.	.	.
Finished Basement	.	.	.
Attic	.	.	.
Sump Pump / Drainage	.	.	.
Connected to Sewer System	.	.	.
Patio	.	.	.
Backyard Fence	.	.	.
Landscaping	.	.	.
Property Boundaries	.	.	.
Security (dead bolts, detectors)	.	.	.
Building Code	.	.	.
Compliance	.	.	.
Ability to Expand / Enlarge House	.	.	.

Karl Peidl

Accredited Mortgage Advocate

Lincoln Mortgage Company

251 Bellevue Avenue, Suite 102

Hammonton, NJ 08037

609-878-7013

Mortgage Rate Update

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Thu, 17 Sep 2009 11:32:42 -0500

Mortgage Rate Update &
Choosing a Fixed Rate Loan

Fixed rate loans generally come with one of two options; the 30-Year Fixed and the 15-Year Fixed. If a borrower is planning on being in the same home for a long period of time, a 30-Year Fixed may be more attractive because it offers stability. The monthly payment will remain consistent over the life of the loan. If interest rates are at historic lows at the time the borrower is seeking to obtain financing, this is a good program to consider.

A 15-Year Fixed loan program offers the same stability, but the accelerated amortization schedule makes the monthly payment substantially higher. While the interest rate may be lower on this type of loan, the borrower must be willing to commit to a higher monthly payment. If the borrower wishes to retire in 15 years and be debt-free at that time, this loan program may be more suitable to the borrower's long-term needs.

It is also possible to make pre-payments on a 30-Year loan and reduce the life of the loan, as well as the overall interest payment, without committing to the higher monthly payment of a 15-Year program. As long as there is no pre-payment penalty associated with the 30-Year mortgage, pre-payment offers the borrower the latitude to make additional payments when it is affordable. If cash flow becomes difficult, this arrangement will not put the borrower in a compromising position.

Mortgage Interest Rates*

Rates as of Thursday, 17th September, 2009:

	Conforming	APR	Payment per $1,000	Jumbo	APR	Payment per $1,000
30-Yr. fixed	5.125%	5.131%	$5.44	5.375%	5.465%	$5.60
15-Yr. fixed	4.500%	4.723%	$7.65	4.875%	5.026%	$7.84
7-Yr. fixed ARM	4.375%	4.627%	$4.99	6.500%	6.596%	$6.32
5-Yr. fixed ARM	4.000%	4.124%	$4.77	6.125%	6.219%	$6.08
3-Yr. fixed ARM	4.000%	4.124%	$4.77	6.125%	6.219%	$6.08
5-Yr. Interest Only	4.000%	4.124%	$3.33	5.375%	5.465%	$4.48
FHA 30-year fixed	5.000%	5.131%	$5.37	5.250%	5.339%	$5.52

*Rates are subject to change due to market fluctuations and borrower's eligibility.

Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

Accredited Loan Consultant

609-878-7013

Bi-Weekly Mortgage Payment Programs: The Truth Revealed

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Wed, 16 Sep 2009 12:57:55 -0500

Bi-Weekly Mortgage Payment Programs: The Truth Revealed

A Bi-Weekly Mortgage is a mortgage where you make "half payments" every two weeks, rather than one payment per month. This results in making the equivalent of 13 monthly payments per year, rather than 12, significantly reducing the time it takes to pay off a thirty year mortgage. This is done by by taking your normal monthly payment and dividing it by two. Since you would pay 26 bi-weekly payments, by the end of a year you would have paid the equivalent of one extra monthly payment. This additional amount accelerates your loan payoff by going directly against your loan's principal. The effect can save you thousands of dollars in interest and take years off of your mortgage.

If you search for "bi-weekly mortgage" with an Internet search engine, you will be overwhelmed by the number of companies offering "Bi-weekly Mortgage Reduction Services" or "Bi-weekly Savings Programs." Beware, you are entering dangerous waters.

Beware of Bi-Weekly Mortgage Reduction Services and Savings Programs

These "Reduction Services" and "Savings Programs" are charging you fees to "make a bi-weekly mortgage payment" for you. The enticement is that they will save you an impressive amount of money on your mortgage and reduce the number of years you pay on your mortgage.

The enticement is that they will make bi-weekly mortgage payments for you.

The real story is that they are not actually making bi-weekly payments on your mortgage. They are making bi-weekly deductions from your bank account. These funds are placed into an account from which your monthly mortgage payment is made (which only takes 24 deductions - but during the course of a year 26 deductions will be made from your account). With the extra 2 deductions, the "Service" makes an additional mortgage payment. In other words rather than making 12 mortgage payments, 13 payments are made.

The enticement is that they are providing a special service to you that would either not be possible for you to get on your own or that you won't have the time or discipline to make it happen.

The real story is that you can easily make an additional mortgage payment each year. An easy way to do this is to have your mortgage payment automatically deducted from your account each month with an additional 1/12 payment to be applied to the principal amount. At the end of 12 months, you will have made an additional payment. And you won't have to pay any fees to a "Service".

To help you see how much you can save by doing this yourself, you can use this bi-weekly payment calculator.

Karl Peidl

http://www.karlpeidl.com/Home

Lincoln Mortgage Company

251 Bellevue Avenue, Suite 102

Hammonton, NJ 08037

609-878-7013

kpeidl@supmort.com

First-time Homebuyers - 12 things you must do

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Tue, 15 Sep 2009 16:21:49 -0500

First-time Homebuyers

Your decision to buy a home is both a sound financial decision and a commendable achievement. Below we have listed 12 things you must do to prepare.

1. Check the selling prices of comparable homes in your area. Web sites like Zillow and Homegain can give you a general idea of what you should expect to pay. You can also do a quick search of actual MLS listings in your area on a number of Web sites, including the National Association of Realtors. Also consider:

Where will you be in 5-10 years?
Do you have kids or plan to have them?
Does your job require you to move around a lot?
Do you have time to maintain a home and yard?
Do you want to live near work?
Do you want to live near shops, restaurants and nightlife?
How much living space do you need?

2. Use our mortgage calculators to get an idea of what your monthly mortgage payments would be if you bought today. You can also use my "Rent vs Buying" calculator to compare the costs of buying and renting. Just because a lender will give you the money doesn't mean you should take it. You know best what you can manage. Don't over-extend yourself. Also consider additional expenses that come with homeownership:

Insurance
Property Tax
Private Mortgage Insurance
Homeowner's assoociation fees
Utilities (increase with square footage)
Maintenance

3. Find out what your total monthly housing cost would be, including taxes and homeowners insurance. In some areas, what you'll pay for your taxes and insurance escrow can almost double your mortgage payment. According to the Insurance Information Institute, the average yearly premium can range from $477 a year in Utah to $1,372 a year for Texans.

4. Find out how much you'll likely pay in closing costs. The upfront cost of settling on your home shouldn't be overlooked. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and prepaid items like homeowners insurance or homeowners' association fees. We can not only help you determine likely closing costs, but also ensure you are getting fair terms for your profile, qualifications, and program.

5. Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28% percent of their income on housing costs.

6. Talk to a reputable Realtor in your area about the real estate climate. Do they believe prices will continue falling or do they think your area has hit bottom or will rise soon? I can also assist you with some analysis to get a better feel of this in your specific market as well as recommend a Realtor.

7. Remember to look at the big picture. While buying a house is a great way to build wealth, maintaining your investment can be labor-intensive and expensive. When unexpected costs for new appliances, roof repairs and plumbing problems crop up, there's no landlord to turn to, and these costs and can quickly drain your bank account. So consider whether you're ready for the expense and effort of homeownership before pulling the trigger.

Prepare for the hunt
If the numbers in 1 thorugh 7 make sense for you, taking a few steps at the beginning of the homebuying process can save you time, money and aggravation.

8. Examine your credit. Right now, blemished credit or the inability to make substantial down payment can put the kibosh on your homeownership plans. That's why it pays to look at your creditworthiness early in the home-buying process. Get your free annual credit report at annualcreditreport.com and comb through it for errors and unresolved issues. If you find mistakes, contact the credit reporting bureau to make sure they are corrected. It's also a good idea to get your FICO score, which will cost you a small fee.

9. Get your documentss in a row. Collect pay stubs, bank account statements, W-2s, tax returns for the last two years, statements from current loans and credit lines, and names and addresses of your landlords for the past two years. Have them ready to show to the lender. This may seem like a lot, but in this age of tight credit, don't be surprised if your lender needs a lot in the way of documentation.

10. Find a lender and get preapproved. Getting preapproved for a mortgage helps you bargain from a position of strength when you are house hunting. Start by filling out a loan application so we can review your qualifications.

11. If at first you don't succeed, try, try ... the government? If you can't find a bank willing to lend to you -- and in the current tight credit market, it's possible you won't -- consider getting an FHA loan. The Federal Housing Administration has a program that insures the mortgages of many first-time homebuyers. As a result of this guarantee, lenders who might otherwise feel queasy about your qualifications will be more inclined to lend to you. As a bonus, the FHA only requires a 3.5 percent down payment from first-time homebuyers.

12. Finally, don't forget about the first-time homebuyer tax credit. Get your hands on Form 5405 ahead of time and send it in with your tax return immediately after your home purchase to ensure you receive the $8,000 credit as soon as possible. Also, many states are now piggy-backing on top of the federal tax incentive with their own incentives and grants.

Please contact me with any questions.

Karl Peidl

Accredited Mortgage Advocate

Lincoln Mortgage Company

251 Bellevue Avenue, Suite 102

Hammonton, NJ 08037

609-878-7013

Ways to Raise Your Credit Score - And Fast!

Refinancing in Galloway NJ: Shopping for the Right Mortgage

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Mon, 14 Sep 2009 11:08:05 -0500

Refinancing in Galloway, NJ

Shopping for the Right Mortgage

Finding a mortgage that's right for you should be easy. But there are often many different programs to choose from, as well as a myriad of ways to structure the loan in terms of the amount, term, payment, rate, closing costs...the list of options may seem endless.

However, because there are so many options available, it's important to seek advice from an experienced mortgage professional who has your best interest at heart. The first step in determining which program is right for you is to ask yourself the important questions listed below. These questions can also help you confirm that you've chosen the right mortgage professional as well, because he or she should be asking you the same questions before trying to put any mortgage in place:

How long do you anticipate living in your home?
Do you expect any changes over the next few years, such as expanding your family or having children go off to college or even move away?
Do you expect any changes in income due to promotions, relocations, retirement, inheritance, or pensions?
Are you expecting a change with regard to your investments?
When it comes to investment strategies, are you conservative, aggressive, or somewhere in between?

The reason these questions are so important is that different loan programs will offer specific benefits that will appeal to borrowers at different stages of life. What one homeowner might find desirable might cause another to reach for the Rolaids®.

In the end, be sure you are given a complete picture of exactly how much your mortgage will cost you over the period of time you anticipate having the loan in place. This is the single most important factor you should consider when shopping for a mortgage. Not only does this data illustrate the bigger picture of your financial goals, it allows for adjustments should things change a little sooner than expected. A good timeframe for this projection is anywhere from three, five, or even up to seven years.

When shopping for a mortgage, you should always evaluate your choices carefully and consider how they will fit in with your long-term financial plan. Answer the important questions listed above and call me for a free consultation. Together, we'll find the program that's best for you.

Karl Peidl

Accredited Loan Consultant

Lincoln Mortgage Company

251 Bellevue Avenue, Suite 251

Hammonton, NJ 08037

609-878-7013

Quick Tips for Getting Started on Your Home Purchase

Buying a Home in Hammonton, NJ: The Federal Reserve and Mortgage Rates

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Sat, 12 Sep 2009 11:01:32 -0500

Buying a Home in Hammonton, NJ
The Federal Reserve and Mortgage Rates
Understanding What Causes Interest Rate Movement

The Federal Reserve constantly evaluates the US economy and, when necessary, takes steps to address inflationary concerns and avoid economic recession or depression. The mass media, in turn, reacts by providing a wide range of opinions and interpretations of the Fed's monetary policy. This can make it very difficult for consumers to decipher how such actions will influence interest rates in general and mortgages in particular.

And although actions of the Federal Reserve can have a direct impact on the Prime rate, mortgage interest rates are dictated by the trading of mortgage-backed securities, which are similar to bonds and trade on a daily basis. This means that the real dynamic at the heart of interest rate movement is the competitive relationship between stocks and bonds.

Stocks, bonds, and mortgage-backed securities compete for the same investment dollars on a daily basis. There is literally only so much money to be invested. When the Federal Reserve feels that interest rates need to be decreased in an effort to stimulate the economy, this reduction in rates can often cause a stock market rally. When the market becomes bullish, the money to invest in stocks comes from the selling off of other investments, including mortgage-backed securities.

Unfortunately, when mortgage-backed securities are sold off to fuel stock market rallies, this causes interest rates to go up, not down.

Historically, there have been many instances where the Federal Reserve has increased interest rates, arousing fears that corporate profit margins would be affected. This resulted in stocks being sold off, leading money managers to search for a place to invest their newly liquidated assets until the next market rally. One such safe haven has been mortgage-backed securities, which cause mortgage rates to drop.

The daily ebb and flow of money is what matters most when it comes to the movement of mortgage interest rates. I make it a point to continuously monitor interest rates for my clients and advise them of opportunities to manage their mortgage debt at a better rate. This is the foundation of my business model as a trusted advisor.

If media reports have led you to second guess whether it's a good time to purchase a new home, give me a call. We'll analyze your financial situation together and create a plan that's right for you.

Karl Peidl

Accredited Loan Consultant

Lincoln Mortgage Company

251 Bellevue Avenue, Suite 102

Hammonton, NJ 08037

609-878-7013

Mortgage Rate Update

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Thu, 10 Sep 2009 09:54:28 -0500

Mortgage Rate Update
High Credit Score = Low Mortgage Rate

Credit scoring was developed in the 1960s as a means to determine whether or not consumers were likely to repay their loans. The score ranges from 350 to 850 with a higher score being extremely favorable. Essentially, a high credit score translates into lower interest rates for the borrower.

There are five factors that comprise the credit score. Payment history accounts for 35% of the score; outstanding credit balances have a 30% impact; credit history makes up 15%, type of credit factors at 10%; and inquiries influence the score by 10%. This gives the lender a snapshot of an individual's sense of financial responsibility and ability to pay back loans.

There are many quick tricks to improve the credit score, and I can provide borrowers with more information on this subject. If necessary, I guide them to a reliable resource for credit remediation. If a borrower has to pay a higher interest rate to close a loan, the tarnished credit rating will begin to improve once mortgage payments are made on time and in full. If that is the case, my team and I will be on the watch to alert the borrower when an opportunity arises to refinance and get a lower interest rate.

Mortgage Interest Rates*

Rates as of Thursday, 10th September, 2009:

	Conforming	APR	Payment per $1,000	Jumbo	APR	Payment per $1,000
30-Yr. fixed	5.000%	5.131%	$5.37	5.375%	5.465%	$5.60
15-Yr. fixed	4.500%	4.723%	$7.65	4.875%	5.026%	$7.84
7-Yr. fixed ARM	4.500%	4.627%	$5.07	6.500%	6.596%	$6.32
5-Yr. fixed ARM	4.000%	4.124%	$4.77	6.125%	6.219%	$6.08
3-Yr. fixed ARM	4.000%	4.124%	$4.77	6.125%	6.219%	$6.08
5-Yr. Interest Only	4.000%	4.124%	$3.33	5.375%	5.465%	$4.48
FHA 30-year fixed	5.000%	5.131%	$5.37	5.250%	5.339%	$5.52

*Rates are subject to change due to market fluctuations and borrower's eligibility.

Karl Peidl

Accredited Loan Consultant

Lincoln Mortgage Company

251 Bellevue Avenue, Suite 102

Hammonton, NJ 08037

609-878-7013

Quick Tips For Getting Started On Your Home Purchase

Buying a Home in Hammonton NJ: How Much Money Should You Borrow?

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Wed, 09 Sep 2009 10:19:31 -0500

Buying a Home in Hammonton NJ

How Much Money Should You Borrow?

While it might be tempting to borrow whatever amount of money your lender is willing to give you, it's important to think carefully about how much you'll actually need to borrow in order to purchase a new home. From the down payment to taxes to insurance and interest rates, there are many factors to consider when making this important, life-changing decision.

Contrary to popular sentiment, there is no standard formula for accurately calculating the specific dollar amount you should borrow when purchasing a new home. Many websites do offer special borrower calculators that claim to factor in important variables, and yet final results vary vastly from one site to the next. Other websites offer general rules of thumb, suggesting that you should never borrow more than 2 1/2 to 3 times your gross annual income, or that 28%, 32%, or even 40% is the maximum amount of debt you should ever take on.

And, while these insights may be helpful as you begin thinking about the overall borrowing process, meeting with a reputable loan professional and getting yourself pre-approved (not pre-qualified) is really the only way to know the exact amount of money you can and should borrow. By getting pre-approved, you not only increase the chance of finding the perfect house for your needs, you also become a "cash buyer", instantly increasing your bargaining power.

As a mortgage professional, I see my role differently than a traditional loan officer. While my job is to match you with the best mortgage available for your specific needs, I feel that it's also my duty to make sure it's the most responsible product as well. After all, what if something unforeseen or unexpected were to occur? What if you have an accident or you lose your job?

Whether you choose to work with me or not, be aware. A lender will often offer you the maximum amount of money that you qualify for, whether you actually need the full amount or not. Because of this, it's vital to sit down with a professional you can trust to figure out your complete financial picture.

If you or someone you know could benefit from this type of free consultation, give me a call. I would be happy to assist you!

Karl Peidl of Lincoln Mortgage Earns Advocate Lender Status

Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

609-878-7013