On October 22, 2009, the House Financial Services Committee  passed an amendment offered by Rep. Gary Miller (R-CA) that could put an end to the problems brought about by the HVCC (Home Valuation Code of Conduct). If the Bill passes in the House and then the Senate, mortgage brokers will once again be allowed to pick appraisers when underwriting loans for real estate mortgages.

“While I am supportive of ensuring accurate appraisals, I have repeatedly expressed concern that the HVCC has potential to increase costs to consumers, significantly hinder a consumer’s ability to obtain legitimate and reliable appraisals, and adversely impact small business professionals who work in the very neighborhoods where these consumers are looking to purchase homes,” said Congressman Miller. “In fact,since the implementation of the HVCC on May 1, there are numerous examples of higher costs for appraisals, poor service, the inability to use one appraisal for more than one lender, questionable quality of appraisals, and the inability to make corrections to inaccurate information on an appraisal report.”

Support The Ongoing Stabilization of Our Markets. Request the Permanent Reversal of HVCC!

Join with over 115,000 people who have already contacted the New York Attorney General, Fannie Mae, Freddie Mac, and the Office of Federal Housing Enterprise Oversight.

Gorgeous two story home on 1/2 acre plus lot features: impressive two story foyer w/second story window, kitchen w/island and eat-in area w/glass doors to deck and patio. Family room with a gas fireplace, formal dining room, master bedroom with full bath, walk-in closet and 10x6 sitting area. The view overlooking Elizabethtown is lovely.

This will be a very memorable June for many Realtors in Elizabethtown, PA. We went to our monthly sales meeting at Preferred Realty Group, Inc. and two hours later we all walked out with new business cards which said Prudential Homesale Services Group.

 

     -from The LaveryTeam February Newsletter

One of the most common things couples often discuss when planning their wedding is buying their first home. Now, I don't have to tell you that buying a home is a topic best dealt with on its own, but when the love bug bites, it can often make its way into the wedding preparations. This is a huge mistake. In fact, this type of mass newlywed hysteria can cause some couples to make five very costly mistakes when they decide to purchase their home.

Newlywed Mortgage Mistake #1

When talks about purchasing a home make their way into a new marriage, they are often met with a tremendous amount of excitement. Dreams of cooking special meals in the large kitchen, images of frolicking in the creek just out back or talk about future holidays with your ever-growing family are just the tip of the iceberg. What often happens is that the reality of the situation is overshadowed by the magic of it all.

One of the biggest mistakes a couple can make is failing to check their own credit prior to applying for their mortgage. Forget about the old-wives tales about points being taken from your credit report if you check it. The truth is that you are entitled to one free copy of your credit report from each of the three big credit reporting companies. This type of credit check is called a "soft pull," and it doesn't show up on your report. If you take the time to check your credit report, you will be able to remove any discrepancies prior to applying for a mortgage. You could ultimately save an interest rate percentage point or two by cleaning up your credit report!

Newlywed Mortgage Mistake #2

Sometimes, the home buying dream can become a reality very quickly! But one thing you should always do first (and what most newlyweds fail to do) is - get pre-approved for your loan before choosing your home. This will tell you where you fall financially and it can help prevent you from seeing homes out of your reach. In addition, a pre-approval tells the mortgage company that you are ready to go and it tells the home seller that you are interested in making the purchase. It helps to speed up the process and you can get any minor bumps out of the way before they show up at closing.

Newlywed Mortgage Mistake #3

Searching for the perfect home is a lesson in patience and how to avoid temptation. Because newlyweds are still riding high on their wedding euphoria, they will often lose sight of that. When the mortgage company tells the newlywed couple that they are approved for $350,000, they're not telling you to go out and buy a home for that amount! This is a trap that many newlyweds fall into - mortgaging too much money. Always make sure that you can afford the home you want to purchase, not purchase the home you want to be able to afford.

Newlywed Mortgage Mistake #4

Starting off your new life together takes some getting used to. It also requires a lot of money! Don't make the mistake of using all of your savings for your home's down payment. Even though you probably received plenty of gifts on your wedding day, you will still have to purchase a number of big-ticket items for your home, which will cost money. Plus, the last thing you want to do is start out your life together with nothing in the bank. Especially when you move into your new home and you discover the hot water heater just sprung a leak and the electrical panel is corroded and the roof needs replaced, should I go on?

Newlywed Mortgage Mistake #5

Sometimes, first-time buyers don't even realize that there are first-time buyer programs and incentives out there. These incentives can help save you money by reducing the amount you need to put down on your home or they can help you get a loan approved if you have sub-par credit. Always look at all of your options before settling on one choice. Discuss all of your financing options with a professional and make the right choice that will benefit you the most.

Buying your first home is an exciting, yet daunting affair. Don't short change the process or you could find yourself spending much more on your mortgage than you should. Keep the wedding plans separate from the home buying dreams and by giving each their own due, you'll find much more happiness and fulfillment in each of these life changing events.

 

324 East Park St, Elizabethtown, PA

Great views and access to the fun park in back. Walk and play in nature every day. Garage off alley. This 4 bedroom home features 1676 sq ft of updated home with historic flair. Once part of the Brandt farmhouse, it was in Elizabethtown when it was untouched country. Some of the decorative woodwork in front is original. Huge eat-in kitchen with deck was added and bathroom, of course. Double hung tilt-in replacement windows, 3 covered porches and balcony to enjoy view. Walk from schools, tennis, gym, library, transportation. Easy access to highway. Lovingly restored and kept.

From The Lavery Team December Newsletter...

You've probably heard a lot about ARMs in the news of late, but many people still find them confusing. They know that the rate changes, but they aren't sure how. ARMs really aren't all that complicated. An ARM, like its counterpart the fixed rate mortgage (or FRM), has two elements: The interest rate and monthly payment. With a fixed rate loan those items stay the same throughout the life of the loan. With an ARM, the interest rate changes and in turn, causes changes in your monthly payments. It works like this. An adjustable rate mortgage has a period in between rate changes called the adjustment period. A one year ARM has an adjustment rate period of a year, so that's how often the interest rate - and your payments - can change. A 3-year ARM has a 3-year adjustment period, etc. The interest rate itself has two parts: the index and the margin. The index determines the interest rate. It may be based on CMT securities, the Cost of Funds Index (COFI), the London Interbank Offered Rate (LIBOR) or even the lender's own cost of funds. These indexes vary, with some changing more often than others and some that are generally higher than others. The margin represents how much your interest rate will be over and above the index. For example, if your index is 3% with a 3% margin, the rate would be 3% + 3% or 6%. Following is the formula. Index + Margin = Fully Indexed rate Using the formulas, if the index rose to 4%, the fully indexed rate would be 7%. There is a limit on how much your loan can change: It's called a rate cap. Rate caps limit how much interest the lender can charge you.

There are two main kinds of caps typically used on ARMs: A periodic cap limits how much your rate is allowed to increase from one adjustment period to the next. A lifetime cap limits how much the interest rate can change over the entire life of the loan. By law, there must be an overall (lifetime) cap on adjustable rate mortgages. Note that if the interest rate on a given loan is held down by means of a periodic cap, if the index were to go up, the lender may be able to impose the increase at the end of the next adjustment period. For example, if a periodic cap is 2% but the index rose 3%, the lender may raise the rate 2% during the present adjustment period and the extra 1% during the subsequent period. There is a third cap called a payment cap that limits how much your monthly payment can go up at the end of each adjustment period. Usually if your ARM has a periodic rate cap, it will not have a payment cap. The reason it's so important to consider all these caps when evaluating a loan is to understand the way that your monthly payment will increase. This is important because it will directly affect the amount of money you have on hand each month for non-housing expenses. The incremental increases in the index and rates can be deceptive. But do the math: If your monthly payment increases from $953 to $1,395 over the first seven years of the loan, that is nearly a 50% increase and could represent a significant burden to your monthly budget. If you still aren't sure about your ARM program, get a written disclosure from your lender. If you are considering an ARM, be sure to compare the annual percentage rates (APR) and caps on several ARMs to evaluate which one will cost you less money.

It's Halloween time again and Elizabethtown will have the 18th Annual Haunted Fairgrounds. This scary event is sponsored by GEARS and The ROTARY CLUB of Elizabethtown. And for those faint of heart there will be non-scary activities like pumpkin decorating and hayrides.

 

For more information go to www.getinfogears.org or call (717) 367-0355

 

 

Gorgeous 2.5 story home on .62 acre corner lot features 3241 sq ft of living space including finished in-law quarters (approx. 600 sq ft) in basement, 6 bedrooms, 3 1/2 baths, Great Room with fireplace, dining and living rooms, new oak kitchen and first floor laundry. Oversize front 2 car garage and attached back 4 bay garage (room for 9 cars) equals total garage space of 3116 sq ft.