Kevin Fase's Blog

Chase Preferred Agent Program

Kevin Fase, Senior Loan Officer, Mortgage Planner (Chase) — Wed, 15 Oct 2008 12:06:38 -0500

Working with a Chase Preferred Agent has its benefits.

At Chase, we offer a broad range of financing solutions that work to meet your needs. And when you work with a Chase Preferred Agent you'll receive even more advantages.

Clients of Preferred Agents are entitled to receive:

• Passport-to-PurchaseSM

Provides you with a pre-approval as well as 90-day rate lock options

• 90-Day Listing Lock Program

List your home with a Chase Preferred Agent and protect the rate on the home you are selling for potential buyers

• Application Incentives

Ask your Chase Loan Officer about special offers when you apply for a home loan with Chase and are referred by a Chase Preferred Agent

• Closing Cost Discount

Customers of Chase Preferred Agents get up to $500 off Closing Cost when they purchase or Refinance their home with Chase

• Chase Service Guarantee

Close within 20 days of completed application or Chase will pay you $500. Call today and learn more about the wide range of mortgage programs Chase has available and don't forget to let us know you were referred by a Chase Preferred Agent.

Contact me for details or visit my website.

Union Members Mortgage Special

Kevin Fase, Senior Loan Officer, Mortgage Planner (Chase) — Tue, 14 Oct 2008 15:55:15 -0500

Union Plus® Mortgage Assistance Program

Here's a valuable program offered by Union Privilege for members participating in the Union Plus Mortgage Program. The assistance benefit can provide peace of mind for union homeowners, their parents, and children.

Interest-free loans in the event of unemployment, disability or strike:

This unique benefit is designed to help out if you or your co-borrower (if you rely on your co-borrower's income for mortgage payments) is out of work because of a layoff, disability, union-sanctioned strike, or lock-out.

You can apply for an interest-free loan from the Union Plus Mortgage Assistance Program to cover your monthly payment. Loans are made on the basis of need and cover up to six months of mortgage payments. Loans are interest-free

and monthly payments begin one month after the last assistance program payment. If you sell or refinance your home, you must repay your loan in full at the time of the sale - if the proceeds of the sale or refinance exceed the value of the mortgage.

For more details, contact Kevin at 616.363.6042 or visit my web site.

Did you know, there are over 30 million Union Members in the United States? Today, when you take family members into account, nearly 1/4 of all homebuyers are eligible for our special Union Plus Program.

Temporary Higher Conforming Loan Amounts - HR 5140 (PART 2 OF 2)

Kevin Fase, Senior Loan Officer, Mortgage Planner (Chase) — Wed, 19 Mar 2008 14:27:28 -0500

The Office of Federal Housing Enterprise Oversight (OFHEO) released the temporary maximum conforming loan amounts which will be effective through the end of 2008. This change is part of The Economic Stimulus Act of 2008. This now permits Fannie Mae and Freddie Mac to increase their maximum conforming loan amounts in certain high-cost areas through out the U.S. The new limits vary by location and are determined by the median home price for high cost areas as estimated by the U.S. Department of Housing and Urban Development (HUD).

There are seventy one Metropolitan and Micropolitan Statistical Areas which are affected by the change and another 224 counties and cities not listed within those counties. Additionally, there are 21 counties outside of Metropolitan or Micropolitan areas that will receive an increase, plus Guam and four municipalities in the Marianas Islands. The new conforming loan amounts will range from $417,500 with Greeley, Colorado being the lowest increased and Honolul, HI receiving the highest increase at $793,750.

A complete listing of the new loan amounts can be viewed by state, metropolitan area and county by visiting OFHEO's Web site, available at www.ofheo.gov/media/hpi/AREA_LIST.pdf.

HUD has also increased the loan limits for FHA financing as well and data for all areas are available on the HUD Web site at https://entp.hud.gov/idapp/html/hicostlook.cfm.

Spend it or Save it? Your '08 Stimulus Tax Refund

Kevin Fase, Senior Loan Officer, Mortgage Planner (Chase) — Tue, 04 Mar 2008 10:59:39 -0600

What will you do with your refund?

The 2008 Economic Stimulus Plan has got many people talking a lot lately. The $168 Billion package is supposed to kick start our economy by handing out tax rebates which should arrive in our mailbox as early as this spring. So the BIG question is: what will you do with your rebate check? Visions of a caribbean vacation or a new big screen HD TV come to mind. The information below could help you estimate how much you'll receive, so consider your options, and then start planning now so you're prepared.

So how much money will you receive?

The amount you receive will ultimately depend on how much money you made in 2007. For instance, single people with adjusted gross incomes up to $75,000 will receive a rebate check of $600. For married couples filing jointly and earning up to $150,000 agi, they can expect to receive $1,200. And those who earn at least $3,000 but don't pay taxes will receive about half as much, so $300 for individuals or $600 for married couples filing jointly.

If you are single and make more than $75,000 or married and earn more than $150,000, then your rebate amount will shrink. Plan on receiving $50 LESS for every $1,000 you earn over these limits.

And finally, for those who have kids, you can expect to receive a $300 credit for each.

SOOOO...What will or should you do with the money?

You do nothing...at least for now - Wait a minute before you start to mentally spend those dollars. You should hold off until you have filed your 2007 tax return. WHY??? Because the gross income listed on your 2007 return will determine how much money you will receive. So unless you absolutely need the money right now, try to hold off on spending it until you have the check in hand. All too often, we sometimes make the mistake of purchasing items on our credit card or with money from savings with the good intentions of paying it back...only to have have an unexpected expense come up. Avoid this temptation and make a commitment to wait for the check to arrive before you spend it.

Don't overspend - Regardless of how much you money you get back, put a limit on your spending and stick to it. We all know how easy it is to stroll into a store with a budget in mind and then walk out having spent more than you intended.

You could consider not spending any of it -The government is refunding this money with the hope that we spend it so that it helps to stimulate our economy. However, "spending" might not be the best plan. If you have high-interest rate credit cards, use the money to pay off or down the balance. If your balances are not very high, consider placing the money in an interest-bearing account, start a college savings plan, or put the money in a IRA where it will earn you more and more money as time goes on.

***The 2008 Economic Stimulus Plan has many benefits you may not be aware of. In addition to these rebate checks, it includes new conforming loan limits that may allow you to refinance into a lower rate and save money every month, or purchase a home more affordably.

So what are you planning to do with your money. Spend it or save it? Give me some feedback and let others on AR know? I am thinking new tv, but I know my wife wants to sink her toes into the white sands of the carribean. I have to admit a vacation does sound nice.

Higher Conforming Loan Limit - HR 5140 (PART 1 OF 2)

Kevin Fase, Senior Loan Officer, Mortgage Planner (Chase) — Fri, 08 Feb 2008 23:17:53 -0600

The stage has been set to raise the conforming loan limit with HR 5140.

It's part of the economic Stimulus ACT of 2008 which passed by The House, then The Senate and is now on it's way to The President. So what is it about? Well, most of us will be glad to know we will be getting a tax rebate between $600 and $1200 for married and filing jointly. That will be a nice shot in the wallet come May 2008.

The real money savings is for those who have a JUMBO mortgage. It's important to note; not all the details have been hammed out yet. However, it sounds like there will be a calculation based on the median home price much like HUD does already for FHA loans. So the median home price will then be multiplied by 125% to determine the max conforming loan amount. If the calculation works out to be above $417,000 for the area (the current max conforming loan limit) then a home owner will be eligible to obtain a conforming rate at the higher loan amount. However, in no case will the max conforming loan amount be allowed to exceed $729,750. IS THIS AWESOME OR WHAT?

So many homeowners could benefit from this who live in a high cost areas, such as Anaheim, Baltimore, Boston, D.C., Los Angles, Miami, New Jersey, New York, Sacramento, San Bernadino, San Diego, San Francisco, San Jose, Seattle, West Palm Beach, and possibly more. These people who have jumbo rate mortgages now would be able to receive a conforming rate. The difference between conforming rates and jumbo rates is approximately a full 1.000%. That's a huge difference for many and a major money savings as well.

Again, not all the details have been smoothed out so not everyone will be able to borrower up to $729,750. I will continue to monitor this bill and pass along new updates as I get them. Stay tuned, The President is expected to review it early next week.

FHASecure Financing - The Facts

Kevin Fase, Senior Loan Officer, Mortgage Planner (Chase) — Thu, 07 Feb 2008 11:39:50 -0600

If you are a current homeowner, no doubt you have EARNED IT!

It's the American dream, owning a home to call yours. However with the state of the mortgage industry, some homeowners who choose an adjustable rate mortgage (ARM) are now facing the reality of the losing their dream. 2 to 5 years ago, adjustable mortgages were incredibly low and at that time nobody would have thought this industry would have gone through a major correction. Now some of those homeowners are experiencing their adjustable rate increasing to a rate they cannot afford to pay. Some critics could argue these borrowers should accept some responsibility for taking such a risky loan. Furthermore, the lenders offering these loans should also be responsible for offering loans to borrowers who may not be able to make the payments if the rates were to increase. That's whole another topic! Back in the day and even now, borrowers wanting an ARM mortgage are actually approved at a rate which is 1% - 2% higher. This approval process weeds out those who might experience financial problems as result of a rising ARM rate.

So the real problem is not just the rate has gone up and people cannot afford the payment. It's actually a combination of a increased mortgage rate and a weak economy. Some of these homeowners are earning less money today than a couple years ago and those who were dual income families are now down to one spouse working. To make matters worse, gas prices have sky rocketed, credit card companies are required to collect more with each monthly statement and the list goes on. So while it is a problem, it's not one that most homeowners or lenders should or could have seen coming.

So the solution is......maybe for some a FHASecure refinance. FHASecure is a refinancing option that gives credit-worthy homeowners a second chance. Homeowners who were making timely mortgage payments before their rate adjusted but are now in default could be eligible for a refinance.

WHO IS ELIGIBLE

To qualify for a FHASecure, and include the delinquent loan payments, homeowners must meet the following requirements:

Have a mortgage which is not a FHA ARM now;
Must not be a fixed rate mortgage now;.
The rate has already adjusted;
Formal income qualification for the new mortgage payment; and
Have a history of on-time mortgage payments before the rate adjusted.

Possibly the greatest feature about this loan is there is no limit on how far behind on payments a homeowner can be. Whether current on the loan or 6 months behind and facing foreclosure, the amount a homeowner can refinance is dependent on their home's value and the amount of equity they have left. If there is not enough equity, then it's up the homeowner's current lender to offer a second mortgage to bridge the gap between what is owed and what the home is worth.

By refinancing into a FHA insured mortgage, a homeowner can expect to pay lower monthly mortgage payments. FHASecure can improve the quality of life for many communities by helping to reduce the number of mortgage defaults and bringing greater stability to local housing markets.

For additional information about the FHASecure loan, contact me or visit the FHASecure FAQ website.

Credit Freeze, Protect Your Identity!

Kevin Fase, Senior Loan Officer, Mortgage Planner (Chase) — Sat, 02 Feb 2008 14:20:40 -0600

America's number one crime, Identity Theft! Would you believe in the time it takes you to count to ten, five new people will fall victims to this crime? It's amazing! And according to the U.S. Department of Justice, identity theft is now passing drug trafficking as the number one crime in the United States. Unfortunately, more than 15 million people will be victimized this year alone.

If you are concerned about protecting yourself, you can actually take some steps by requesting a credit freeze (also known as security freeze). Essentially, a credit freeze gives you the ability to "freeze" or lock access to your credit report. By doing this, you will prevent anyone from opening a new account using your name.

How It Works

When a thief tries to open an account using your name, they will be stopped before they even begin. What do we know about applying for a new loan? The first thing any creditor will do before opening a new account is to run a credit report.

By requesting a credit freeze, creditors will not be able to run your credit report. And, since most creditors will not issue a new loan without first seeing your credit report, identity thieves will not be able to open fraudulent accounts using your good name. But, what happens when you want to apply for a new loan yourself? You can request a temporarily lift on your credit freeze using a secure PIN number... thus, allowing your application to be processed.

There is a Down Side

It's important to first know that a credit freeze only prevents thieves from opening fraudulent accounts. It does not stop them from using your lost or stolen credit cards. So you still need to keep the phone numbers of your credit cards companies handy.

Some critics contend that a credit freeze will have more draw backs than most people realize. Such as, you will not be able to purchase a car, obtain a new credit card, or refinance a mortgage at the drop of a hat. Impulse buying will not be available. So you will need to plan ahead by suspending your freeze and that can take up to three days.

However, for most major purchases, this should not be an issue. How many of us will buy a new car or a house without first thinking about it? Most of us start looking around first and, at that point, we can easily lift the credit freeze in anticipation of making a purchase. However, a credit freeze can present a problem if you are shopping at a retailer and the cashier offers you 10% off your purchase when you open a new credit card.

Alternative Options

Still critics of a credit freeze argue that anyone can just as easily fight identity theft with fraud alerts. This would require a creditor to verify your identity before issuing new credit. If you think you might be a victim of identity theft, you can obtain a 90-day fraud alert. And if you provide reliable proof that you are in fact a victim, then a police report can extend your fraud alert for up to seven years.

There is a problem with this method though... fraud alerts only come into play AFTER you have been victimized. So for many people, a credit freeze offers more protection and more peace of mind.

But Here's the Kicker... You May Not Have a Choice!

Believe it or not, a credit freeze is not available in every state. Some states still need to approve a credit freeze law. Why you ask? It boils down to a battle between retailer's very profitable instant credit offers and the increasing need for higher security of personal information.

Unfortunately, billions of dollars are at risk in this battle! Retailers generate massive revenues streams through their instant in-store credit cards. Obviously this increases profits through consumer interest and increased shopping. However, we as consumers are part of the problem too. We as a society have simply grown accustom to receiving on-the-spot credit approvals for our purchases.

To learn more about these issues and to find out if your state allows credit freezes, visit www.ConsumersUnion.org/finance/creditfreezeinfo.htm.

Principal & Interest Payment Factors

Kevin Fase, Senior Loan Officer, Mortgage Planner (Chase) — Thu, 31 Jan 2008 22:47:12 -0600

Monthly Principal and Interest Rate Chart

If you're looking to buy a home or refinance the one you already own, this chart will help you determine a fully amortized principal and interest payment. My hope is this table will help you stay within your price range or payment goal. This chart only calculates the principal and interest payment only. This chart does not calculate property taxes, home owners insurance, private mortgage insurance (PMI) or association dues. If you are purchasing a home, a Realtor, builder or even I will be able to provide the remaining payment details. To calculate the principal and interest portion of the monthly payment, first divide the loan amount by $1,000. Then multiply that number by the principal and interest payment factor. For example, if a $150,000 loan amount is desired on a 20 year fixed rate, then follow these steps:

1. $150,000 / $1,000 = $150

2. 20 year loan @ 5.500% = 6.88 P&I Factor

3. 6.88 P&I Factor x $150 = $1032 per month

For interest only loans, a chart is not necessary. Simply multiply the rate by the loan amount and divide by 12. For example, a $150,000 loan amount with a rate of 5.500% would be calculated as follows:

1. $150,000 x 5.500% = $8250

2. $8250 / 12 months = $687.50 per month

For adjustable rate mortage, follow the same steps for a fixed rate mortgage and use the payment factor from the 30 year term.

Monthly Principal and Interest Payment Factors (per $1,000)

Interest Rate	15-Year Term	20-Year Term	30-Year Term & ARM Loans
4.00%	7.40	6.06	4.77
4.13%	7.46	6.13	4.85
4.25%	7.52	6.19	4.92
4.38%	7.59	6.26	4.99
4.50%	7.65	6.33	5.07
4.63%	7.71	6.39	5.14
4.75%	7.78	6.46	5.22
4.88%	7.84	6.53	5.29
5.00%	7.91	6.60	5.37
5.13%	7.97	6.67	5.44
5.25%	8.04	6.74	5.52
5.38%	8.10	6.81	5.60
5.50%	8.17	6.88	5.68
5.63%	8.24	6.95	5.76
5.75%	8.30	7.02	5.84
5.88%	8.37	7.09	5.92
6.00%	8.44	7.16	6.00
6.13%	8.51	7.24	6.08
6.25%	8.57	7.31	6.16
6.38%	8.64	7.38	6.24
6.50%	8.71	7.46	6.32
6.63%	8.78	7.53	6.40
6.75%	8.85	7.60	6.49
6.88%	8.92	7.68	6.57
7.00%	8.99	7.75	6.65
7.13%	9.06	7.83	6.74
7.25%	9.13	7.90	6.82
7.38%	9.20	7.98	6.91
7.50%	9.27	8.06	6.99
7.63%	9.34	8.13	7.08
7.75%	9.41	8.21	7.16
7.88%	9.48	8.29	7.25
8.00%	9.56	8.36	7.34
8.13%	9.63	8.44	7.42
8.25%	9.70	8.52	7.51
8.38%	9.77	8.60	7.60
8.50%	9.85	8.68	7.69
8.63%	9.92	8.76	7.78
8.75%	9.99	8.84	7.87
8.88%	10.07	8.92	7.96
9.00%	10.14	9.00	8.05
9.13%	10.22	9.08	8.14
9.25%	10.29	9.16	8.23
9.38%	10.37	9.24	8.32
9.50%	10.44	9.32	8.41
9.63%	10.52	9.40	8.50
9.75%	10.59	9.49	8.59
9.88%	10.67	9.57	8.68
10.00%	10.75	9.65	8.78
10.13%	10.82	9.73	8.87
10.25%	10.90	9.82	8.96
10.38%	10.98	9.90	9.05
10.50%	11.05	9.98	9.15
10.63%	11.13	10.07	9.24
10.75%	11.21	10.15	9.33
10.88%	11.29	10.24	9.43
11.00%	11.37	10.32	9.52
11.13%	11.44	10.41	9.62
11.25%	11.52	10.49	9.71

Banker, Lender, or Broker?

Kevin Fase, Senior Loan Officer, Mortgage Planner (Chase) — Sat, 29 Dec 2007 22:33:16 -0600

Everyone shopping for a mortgage loan wants to obtain the lowest rate possible, that's obvious. However, I do not believe everyone knows where to shop for the lowest rate. The actual rate a home owner ends up with will ultimately depend on the financial markets and the ability of the loan officer to properly read market conditions for the optimum timing to lock their clients rate. However, if all elements were equal then how do you know who can offer the best deal? There are three primary places to obtain a mortgage loan and those are from a banker, broker and lender. Below is a brief description of each, and my opinion of their services.

The Banker: Loan officers working at a brick and morter bank where consumers also have checking or savings accounts. These institutes might also provide additional services for consumer loans, investment choices, insurance and more. This type of mortgage operation is typically more of a corporate structure, has mutliple locations and the loan officers usually have to conform to the same rate and fee structure to keep a consistent offering between all branches. The loans offered are sold directly to the investor and not much brokering outside of the banks own product line is offered. A positive note, bankers typically service the loan after closing so consumers can visit the branch to make payments and ask questions about their loan. A negative, bankers typically have higher rates because they have to pay for several layers of management, a large support staff, and have more buildings to maintain.

The Broker: Loan officers working as a mortgage broker make up 50% of the loans delivered to consumers. Typically a broker will have more of a personal approach to their business since they may not have the name recoginiton of a large bank associated to their business. None of the loans offered will be serviced by the broker, meaning after close the consumer will need to contact the lender for questions concerning their loan. However, the loan options offered are endless since a broker will have several lender relationships established to cover nearly any lending requirement a borrower may present. It isn't acurate to say that broker fees are higher than a banker because they are the middle man. The fact is, a broker is a independent agent working for himself and has the ability to set his or her own fees according to their own business structure. However, a broker will almost always offer a lower rate than the banker because of the lower overhead a broker has. Little known fact; consumers receiving a rate qoute from their banker will be surprised to learn the same loan from their bank can actually carry a even lower rate by going through a broker.

The Lender: Loan officer working as a lender has all the advantages as a broker, but also works for a company which has the ability to sell and service their own loans. Typically, these types of loans are a niche product which is a loan not being offered by the larger institutions.

More than just a mortgage

Kevin Fase, Senior Loan Officer, Mortgage Planner (Chase) — Thu, 20 Dec 2007 07:55:29 -0600

We are Top Flite Financial Group, a local broker in home financing dedicated to helping people get into a home with less stress. It starts with my complimentary pre-qualification and continues with an easy application process. And I will make sure you get to the closing table quickly and efficiently.

In addition to a home loan, I can help with....

● Reviewing your credit to...increase credit scores, fix credit errors, lower interest rates, lower insurance premiums, and implement a credit freeze.

● Review your mortgage tax benefits for...non preferred debt, rate performance, balance & payments on other debt, reduction or elimination of private mortgage insurance, and covert all non-deductible closing costs into deductible closing fees.

● Review your finances to...increase cash liquidity, create an emergency fund, preservation of home equity, increase cash flow, and minimize interest expense.

● Develop or update...an estate plan, a will, power of attorney, home & health insurance coverage, and integration of home financing with other long & short term financial goals.

Personal, caring service including...annual equity & debt reviews, closing documents on CD, mail year end HUD statements, Mortgage Market Guide, familywatchdog.us, MMG weekly & monthly newsletters, rent vs buy analysis report, and just moved postcards.

To have a truly secure future, contact me today.

Kevin Fase Testimonies

Kevin Fase, Senior Loan Officer, Mortgage Planner (Chase) — Wed, 19 Dec 2007 22:25:38 -0600

Lowest Rate Mortgage

Kevin Fase, Senior Loan Officer, Mortgage Planner (Chase) — Wed, 19 Dec 2007 21:06:23 -0600

HERE'S THE INSIDE SCOOP ON HOW TO DO IT RIGHT!

First: make sure you are working with an experienced, professional mortgage advisor. The largest financial transaction of your life is far too important to place into the hands of someone who is not capable of advising you properly and troubleshooting the issues that may arise along the way.

A LENDER ABSOLUTELY MUST ANSWER THESE QUESTIONS CORRECTLY. NOT KNOWING WHAT CAUSES RATES TO CHANGE IS THE SAME AS A DOCTOR NOT KNOWING HOW TO CURE YOU.

1) What are mortgage interest rates based on? The only correct answer is Mortgage Backed Securities or Mortgage Bonds, NOT the 10-year Treasury Note. While the 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds, it is not unusual to see them move in completely opposite directions. DO NOT work with a lender who has their eyes on the wrong indicators.

2) What is the next Economic Report or event that could cause interest rate movement? A professional lender will have this at their fingertips. For an up-to-date calendar of weekly economic reports and events that may cause rates to fluctuate, send me an email and I will add you to my weekly e-newsletter.

3) When Bernanke and the Fed "change rates", what does this mean... and what impact does this have on mortgage interest rates? The answer may surprise you. When the Fed makes a move, they can change a rate called the "Fed Funds Rate" or "Discount Rate". These are both very short- term rates that impact credit cards, Home Equity credit lines, auto loans and the like. On the day of the Fed move, Mortgage rates most often will actually move in the opposite direction as the Fed change. This is due to the dynamics within the financial markets in response to inflation. For more information and explanation, just give us a call.

4) Do you have access to live, real time, mortgage bond quotes? If a lender cannot explain how Mortgage Bonds and interest rates are moving in real time and warn you in advance of a costly intra-day price change, you are talking with someone who is still reading yesterday's newspaper, and probably not a professional with whom to entrust your home mortgage financing. Would you work with a stockbroker who is only able to grab yesterday's paper to tell you how a stock traded yesterday, but had no idea what the movement looks like at the present time and what market conditions could cause changes in the near future? No way!

BE SMART.....ASK QUESTIONS......GET ANSWERS!

More than likely, this is one of the largest and most important financial transactions you will ever make. You might do this only four or five times in your entire life... I we do this every single day. It's your home and your future. It's my profession and passion. I am ready to work for your best interest.Once you are satisfied that you are working with a top-quality professional mortgage advisor, here are the rules and secrets you must know to "shop" effectively.

First, IF IT SEEMS TO GOOD TO BE TRUE, IT PROBABLY IS. But you didn't really need me to tell you that, did you? Mortgage money and interest rates all come from the same places, and if something sounds really unbelievable, better ask a few more questions and find the hook. Is there a prepayment penalty? If the rate seems incredible, are there extra fees? What is the length of the lock-in? If fees are discounted, is it built into a higher interest rate?

Second, YOU GET WHAT YOU PAY FOR. If you are looking for the cheapest deal out there, understand that you are placing a hugely important process into the hands of the lowest bidder. Best case, expect very little advice, experience and personal service. Worst case, expect that you may not close at all. All too often, you don't know until it's too late that cheapest isn't BEST. But if you want the cheapest quote - head on out to the Internet, and we wish you good luck. Just remember that if you've heard any horror stories from family members, friends or coworkers about missed closing dates, or big surprise changes at the last minute on interest rate or costs...these are often due to working with discount or Internet lenders who may have a serious lack of experience. Most importantly, remember that the cheapest rate on the wrong strategy can cost you thousands more in the long run. This is the largest financial transaction most people will make in their lifetime. That being said - I may not the be cheapest. Of course my rates and costs are very competitive, but I have also invested in the systems and team I need to ensure the top quality experience that you deserve.

Third, MAKE CORRECT COMPARISONS. When looking at estimates, don't simply look at the bottom line. You absolutely must compare lender fees to lender fees, as these are the only ones that the lender controls. And make sure lender fees are not "hidden" down amongst the title or state fees. A lender is responsible for quoting other fees involved with a mortgage loan, but since they are third party fees - they are often under-quoted up front by a lender to make their bottom line appear lower, since they know that many consumers are not educated to NOT simply look at the bottom line! APR? Easily manipulated as well, and worthless as a tool of comparison.

Fourth, UNDERSTAND THAT INTEREST RATES AND CLOSING COSTS GO HAND IN HAND. This means that you can have any interest rate that you want - but you may pay more in costs if the rate is lower than the norm. On the other hand, you can pay discounted fees, reduced fees, or even no fees at all - but understand that this comes at the expense of a higher interest rate. Either of these balances might be right for you, or perhaps somewhere in between. It all depends on what your financial goals are. A professional lender will be able to offer the best advice and options in terms of the balance between interest rate and closing costs that correctly fits your personal goals.

Fifth, UNDERSTAND THAT INTEREST RATES CAN CHANGE DAILY, EVEN HOURLY. This means that if you are comparing lender rates and fees - this is a moving target on an hourly basis. For example, if you have two lenders that you just can't decide between and want a quote from each - you must get this quote at the exact same time on the exact same day with the exact same terms or it will not be an accurate comparison. You also must know the length of the lock you are looking for, since longer rate locks typically have slightly higher rates.

Again, my advice to you is to be smart. Ask questions. Get answers.

As you can imagine, I wouldn't be encouraging you to shop around if I wasn't confident that I can give you a great value and serve you the very best.

Fed Rate Cut, Why Aren't Rates Lower?

Kevin Fase, Senior Loan Officer, Mortgage Planner (Chase) — Mon, 24 Sep 2007 21:53:39 -0500

So the Federal Reserve cut rates last week by .500%. Many of my customers have been calling expecting a lower interest rate. And even more of them who have been waiting to refinance out of their ARM are now puzzled as to why mortgage rates have not moved lower during the recent cut. Mortgage rates are now higher than they were before the Fed announced the .500% reduction. This is difficult to explain to many consumers, but with the help of the mortgage market guide, I'll attempt to reveal the mystery behind it all.

So the BIG question, "Is a Fed rate cut really good for mortgage rates?" Before we can answer that question, we must first mention The Fed can only control the Discount Rate and the Fed Funds Rate. Those two are completely different from mortgage rates. A mortgage rate can be in effect for 10 - 30 years, a rate that is set by the Fed can change daily.

Another common mistake is in thinking 30-year Treasury bonds or 10-year Treasury notes are directly linked to mortgage rates.

Those two are government backed securities which are secured by the U.S. government and have no direct effect on mortgage rates.

So the BIG question lingers on, what are mortgage rates based on? As it turns out the answer is mortgage-backed bonds known as Mortgage Backed Securities (MBS). Bonds issued by Fannie Mae and Freddie Mac (MBS) and the trading performance of those bonds will determine the direction of mortgage rates. Finding what causes mortgage bonds to move will give you the keys to finding out what makes mortgage rates rise or fall.

Inflation will always be bad for any long-term bond because it erodes away at the future returns. Since the bond will pay a set amount over a long period of time, that amount will be less valuable if inflation is up. Over the past several years, one catalyst that seems to be working in the opposite direction of MBS prices is the Nasdaq and broader stock market.

As bond prices rise, interest rates fall. As bond prices fall, interest rates rise. A study was conducted and showed that as the Nasdaq moved higher, bond prices moved lower causing interest rates to rise. As the Nasdaq declined, mortgage bonds benefit, causing the mortgage rates to go down. Additionally, and unlike common opinion, the Fed rate cuts had virtually no direct effect on mortgage rates.

The bottom line is it is not necessarily what the Fed does that affects mortgage rates, it's how the Nasdaq and broader stock market interprets the Fed's action. That is what will ultimately influence the direction of mortgage rates. This is because money managers and mutual fund companies typically keep funds in either stocks or bonds with very little in cash. If stocks are in favor, money is pulled from bonds, causing bond prices to go down and interest rates to go up. When stocks are sold off, the money is then moved back into bonds, which improves bond prices and causes interest rates to dip.

Predicting the future of rates is tough and nothing is written in stone. So keep an eye on the Nasdaq, and bear in mind that the best rates may be several years behind us. But, mortgage rates are still low and could have some quick dips hear and there and so my advice is to make the most of them while they last.

Avoiding Private Mortgage Insurance, PMI (at what cost?)

Kevin Fase, Senior Loan Officer, Mortgage Planner (Chase) — Tue, 08 May 2007 22:17:15 -0500

I recently had a client tell me the reason she wanted to put 20% down was to avoid private mortgage insurance. What she didn't realize, PMI could actually be avoided, reduced or leveraged without a 20% down payment. "Oh really", she exclaimed. You bet! PMI is more flexible than it has ever been.

PMI monthly is the most expensive method and for obvious reasons the least favorable. Fact is, PMI can be avoided with no money down using a piggyback loan also known as an 80/20, 80/15/5, 80/10/10 or 75/25. All of these piggyback loans are common solutions to avoid the increased cost home owners like to eliminate. The first three methods use a primary loan at 80% of the purchase price in conjunction with a home equity loan or line of credit for the remaining 5-20% of the purchase price. The 75/25 is no different than the 80/20, but carries lower closing fees. So PMI can actually be a thing of the past if a home owner is willing to carry two loans instead of one. However, there are a few strings attached...qualification being the biggest of them. Credit history is typically the biggest determinate for obtaining one these loans. So if a borrower doesn't have a 20% down payment and doesn't qualify for a piggyback loan then they don't have to settle for one loan with monthly PMI.

If a piggyback loan isn't in the cards for a borrower, then private mortgage insurance can be paid in many ways other than the typical monthly version most people are familiar with. Super Single also known as Single File is a method by which PMI is paid in full at the time of closing as a lump sum. The amount paid is determined by the down payment and calculated as a percentage of the loan amount. It can be paid by the lender, the seller, the borrower or it can be financed into the loan amount. All of these alternatives usually yield a lower payment for the borrower versus paying it monthly. Another method of reducing PMI is through Lender paid mortgage insurance, also known as LPMI. This is a method of waiving the monthly cost of the insurance in exchange for a slightly higher interest rate. How much higher depends on the size of the down payment. Typically the rate adjustment ranges from .250% to 1.000% more than the base interest rate.

To make it easier to understand, follow this TRUE STORY: My client has good credit (a 702 credit score) and wants to buy a $215,000 home. She was considering a partial liquidation of her IRA to come up with a 20% down payment just to avoid PMI. Whoa, wait a minute. Is this the smartest financial decision, liquidating an investment and at what cost? She would have an early withdraw penalty and have to pay income tax on the liquidate funds. So I gave her the following options with only 10% down payment.

PMI Monthly:

Purchase price $215,000 with 10% down = $193,500 loan amount.

6.250%, 30 year fixed, fully amortized = $1191 monthly payment

Private mortgage each month = $68

Payment including PMI = $1259

Same scenario with LPMI

10% down with a credit score over 680 equals .250% adjustment to the base rate

6.250% base rate plus .250% = new rate of 6.500%

Loan amount of $193,500 @ 6.500% = a payment of $1223

Compared to monthly PMI, LPMI is $35 less per month.

Same scenario with a piggyback 80/10/10

Two loans instead of one

First loan is 80% of $215,000 = $172,000 @ 6.250% = $1059 monthly payment

Second loan (30 year fixed) is 10% of $215,000 = $21,500 @ 7.500 = $150 per month

Total for payments for both loans = $1209

This is $50 less than paying PMI monthly and $13 less than paying LPMI

Same scenario with Single Financed PMI

One loan at $193,500 @ 6.250% = $1191

Single financed PMI is 2.100% of the loan amount or an additional $4063 due at close

$1191 is the lowest payment of them all, but is it worth an extra $4062 due at close?

The seller can pay this $4062 or borrower can. However this amount can also be financed into the loan amount.

So $193,500 + $4063 = $197,563 new loan amount

Now $197,563 @ 6.250% = $1216 per month.

So to summarize all options:

$1259 with monthly pmi

$1223 with LPMI

$1209 with piggyback

$1216 with financed pmi

$1191 with seller paid pmi

Which method is best for my borrower depends on her own unique goals and situation. The point is, 20% down isn't necessary to eliminate or reduce the cost associated with PMI. Also, notice how the lowest rate isn't necessarily the lowest payment either. A fast, free and easy to use calculator has been made available by the PMI Mortgage Insurance Company. It's called the eCompare^SM Calculator. PMI's eCompare Calculator helps compare the cost of a loan with several different mortgage insurance options against the cost of a piggyback loan. Now borrowers have the ability to make informed decisions by playing with loan scenarios at their leisure. To calculate rates based on specific loan criteria, the PMI Mortgage Insurance Co. has provided a free rate quote online. Another company, the Mortgage Guaranty Insurance Corporation also known as MGIC, has a free online rate quote too.

First Horizon Rewards, Privileges For Special Customers

Kevin Fase, Senior Loan Officer, Mortgage Planner (Chase) — Mon, 30 Apr 2007 12:58:11 -0500

At First Horizon, we believe our customers deserve special PERKS and REWARDS. That's why we created Star Privileges, the rewards program with both perks and points. Perks include things like gift cards to popular retailers like Best Buy, Circuit City, Home Depot, and many more. We even offer flights (anytime, anywhere, without restrictions), and hotel stays. Our clients can also choose identity theft insurance, special financial planning services, and dedicated customer service. Our clients can start receiving rewards starting for as little as 65 points! We even feature Royal Caribbean® cruises and trip packages to favorite destinations, just in case someone wants to save their points for that dream vacation.

Accumulating points is easy. Points are rewarded for monthly transactions and account balances with our checking, savings, home mortgages and more. Unlike other programs, thousands of points are not required to start redeeming for great rewards. Plus, we have a variety of special opportunities to get bonus points for things as simple as completing surveys. We even reward points every year on the anniversary of when our clients first became a First Horizon customer.

Check it out today or contact me for additional details.

I appreciate the opportunity to share just one the many reasons why our clients choose us. I hope you find our Star Privileges program rewarding.

Ps - if you like this program and want to share with others, then pass along my contact information to those you know who are thinking about buying, building, remodeling or refinancing a home.

Credit Report Score Importance. The More You Know, The Less You Owe!

Kevin Fase, Senior Loan Officer, Mortgage Planner (Chase) — Fri, 27 Apr 2007 10:39:15 -0500

I sometimes get the question, "Why is my wife's credit score higher than mine?" or vice versa. This is a good question and an excellent opportunity to explain how credit scores are calculated as well as the importance of maintaining a high healthy score.

I have learned over time, most of the people I speak with already know that timely payments with their creditors will lead to good scores. However, a spotless pay history does not guarantee an excellent credit score and that's the surprising part for most. Fact is, pay history only represents 35% of our overall credit score. So what else contributes to score calculations?

I'll get to the score calculation in a minute, but first let's explore the importance of a great score. Mortgage lenders look for a score, in general, in the mid 600s or higher. Scores less than mid 600 can lead to a higher rate or increased fees depending on the loan program. I think most of us already knew this. But did you know auto insurance companies are viewing their own credit scoring system to determine the premium we pay for insurance. Wow, you mean how I pay my bills is related to how I drive my car? YES. Somebody thought so and so it is what it is. Other industries that could and do review our credit to determine our premiums also include home owners insurance and health insurance. Of course, retail department stores, credit card companies, auto dealers, and many others all use credit scores determine our rates and premiums.

So knowing how credit scores are determined can lead to a significant savings on multiple accounts when our credit is managed using the following model.

1) 35% of our scores are based on payment history and here's the rest; 2) how much is owed represents about 30% of our scores. Scores are based on how much is owed on each individual account relative to the amount available. The more you owed compared to the available limit, the lower your credit score. Keep credit balances at 50% or less than the limit is good and the lower the better. 3) Length of credit history is 15% of our score. The longer an account is open, the higher your score. 4) New credit equals about 10% of score and 5) the remaining 10% are minor factors such as the overall mix of your accounts types like credit cards, installment loans and mortgage. The Consumer Federation of America has a free brochure that is more in depth about how scores are calculated titled "Your Credit Score". Download it from their site or contact me if you would a like free copy through email.

Want to review your own credit? As of September 1st, 2005, residents of all US states and territories have the right to obtain one free credit report from each of the three credit bureaus per year (Equifax, Experian, and Transunion). I encourage everyone to take advantage of these free reports to review your own credit for accuracy. Doing so is just as important as visiting your physician annually. As I said earlier, from a potential employer to insurance agencies - more companies are using our credit rating as a way to determine what risk we represent to their firm.

The only authorized site to obtain your free credit report is at: http://www.annualcreditreport.com/.

Your free credit report will only show your credit history, not your score. If you want to know your score, you can pay a fee and it will be provided. As an alternative, my clients can call me and I'll run their credit and share their score for free. Doing this is part of my annual service call I offer to all my clients each year. I'll also provide suggestions to my clients on how to increase their scores too.

Annualcreditreport.com entitles any of us to receive one free report from each bureau per year, so consider staggering the requests. For example, order your report from TransUnion in January, another report from Equifax in May, and the final report from Experian in September. Doing so will allow you to order three reports per year...and provides the ability to review your credit throughout the year.

Identity theft is America's most common crime right now. Taking the time to review your credit several times per year could save you money and protect you from criminals. The Consumer Federation of America and Fair Isaac Corporation have stated, "A further layer of protection from ID theft is available...for a nominal fee. For about $100 per year, Equifax is offering unlimited credit reports, notification of any key changes in your credit history, $20,000 worth of identity theft insurance, and up to $4,000 in lost wages to cover taking time off from work to clear credit matters. Trans Union offers a similar program with quarterly access to your credit reports and $25,000 in identity-theft insurance for approximately $50 per year. But if you are considering one of the above policies, first contact your homeowners insurance company...your policy just might include some identity theft insurance already."

Price Reduction or Seller Incentive? (temporary rate buydown...)

Kevin Fase, Senior Loan Officer, Mortgage Planner (Chase) — Tue, 24 Apr 2007 01:38:23 -0500

Grand Rapids, MI has approximately a 5 month inventory of homes, condos, investment and vacant land for sale as reported by our local MLS provider. During the month of March, The Grand Rapids Association of Realtors, otherwise known as GRAR, reported just over 14,000 listings available. However, year to date sales are down 6.7% from this time last year. In addition, the average home sales price is down 1.8% as well. It's not hard to see that fewer homes are selling and for less. So how can a seller hold their line without giving away the farm? Realtors and sellers are challenged with either a price reduction to attract buyers or not reducing and possibly not selling. Multiple price reductions ultimately hurt the local value of all surrounding homes, not just the ones for sale, and erode at the equity a home owner has accumulated over time.

Let's face it, we all buy based on a payment, right? Think about the last car you purchased. Where you more concerned about the price you paid or the payment you were going to pay each month? Home buyers are no different and if shown the payment versus purchase price, payment typically WINS.

So if payment is the ultimate question on most buyers minds, then a temporary rate buydown is the answer. Creative financing by way of the temporary rate buydown is a great solution to the common issue of let's do multiple price reductions until your home is sold. The buydown is nothing more than a seller incentive in which the buyers cost is paid by the seller.

Let's take a look at some real numbers. Let's say for example a home priced at $199,900 with nothing down, and a rate of 6.250% yielded a monthly principle and interest payment of $1230. After 120 days with no offers, the seller and Realtor might agree to reduce to $194,900. This sounds like a typical scenario so far right? What this means to the prospective buyer with nothing down, payment is now $1200 vs. $1230. A $30 savings per month, big deal huh? I know you are probably thinking, yeah but $30 a month for several years adds up. If you're thinking that, then keep reading because I might just change your mind.

Consider the statistics...if most home owners today are moving approximately every 5 to 7 years, then that's 60 to 84 payments. A $30 saving per month for 60 months is $1800 or 84 months is $2520. Now let's consider the temporary buydown. If the seller is willing to reduce their price by $5000, they should also consider a buyer incentive instead of the price reduction. So seller offers to pay the buyers temporarily rate reduction for 2 years. Now instead of 6.250%, the buyer receives 4.250% for the first 12 months with a payment of $983. Months 13- 24 the buyers rate is 5.250% with a payment of $1103 and months 25 - 360, the rate is 6.250% with a payment of $1230. The total cost of the buydown, which the seller pays, is actually $4488. If the buyer follows statistics and stays in the home for 5 years, they would have saved $4488 for the first 2 years. However, years 3 through 5, buyer would have paid $30 more per month for a total of $1080 more ($30 x 36 payments). So $4488 minus $1080, adjusted saving is $3408. So I ask the question, save $30 per month for 5 years for a total of $1800 or buydown and save $3408? It's kind of like: six one half dozen or the other, but really it's holding the line on value and having your cake and eat it too.

In summary, the benefits are 1) seller holds the market value of the local area, 2) cost to seller is less, 3) buyer has a lower payment for 2 years, 4) buyer saves more money, 5) cost of the buydown can be tax deductible, 6) features of a adjustable rate with benefits of a fixed rate, 7) Realtor has a higher selling price.

The example above was a 2/1 buydown, however temporary buydowns can be offered for a period of 1 to 3 years and 1% to 3% below market rates. So the longest buydown would be a 3/2/1, meaning 3.250%, 4.250%, 5.250% and finally 6.250%. Buydowns can also be constant instead of progressive so for example a 1/1/1, or a 1/1 would mean a 1% discount for 3 years or 2 years respectively. Lastly there is the compressed buydown, where the rate changes every six months instead of 12 at .500% increments.

Hopefully you have a better understanding of how creative financing can make a big difference for both buyer and seller. If you would like a free buydown calculator, contact me and I'll send it to you for free through email.

The USPS "Forever" Stamp...

Kevin Fase, Senior Loan Officer, Mortgage Planner (Chase) — Mon, 16 Apr 2007 22:53:15 -0500

Here is a article written by the Mortgage Market Guide, a paid service I subsribe to.

PLEASE MISTER POSTMAN, LOOK AND SEE...IF THERE'S A LETTER, A LETTER FOR ME...Perhaps the reason neither the Beatles nor the Marvelettes hadn't received that important letter was simply incorrect postage. And with the postage increases that seem to come more and more frequently, it's not a crazy assumption to make. So here it comes again - starting May 14th, new higher postal rates will go into effect. If you don't want your loved ones - not to mention your creditors - waiting by the mailbox, now is the time to prepare.

The cost of postage for a standard one ounce first class letter is increasing from 39 cents up to 41 cents. And you know the drill - each time the post office bumps up the rates by a penny or two, it requires an annoying trip to the post office to purchase a book of one or two cent stamps.

But now - you can wave goodbye to those pesky one and two cent stamps that clutter up your desk or your wallet...the post office has finally created a stamp that will last "FOREVER".

The new stamp is called the "Forever" stamp and was created to do just what the title states....last forever. Once the stamp is purchased, the stamp can be used forever to mail one-ounce First-Class letters anytime in the future regardless of postage increases. The current price of each Forever stamp is 41 cents, and you can buy Forever stamps at that rate until the next postage increase. When the postal rates increase in the future, new Forever stamps sold at that time will go up in price too - but you can use up all your previously purchased Forever stamps without having to deal with buying and using the inconvenient make-up stamps for the difference. Forever stamps can now be purchased online at http://www.usps.com/ or at post offices nationwide.

Contingent vs. Interest Abatement (interest free payments)

Kevin Fase, Senior Loan Officer, Mortgage Planner (Chase) — Sun, 15 Apr 2007 10:49:02 -0500

New homeowners often worry about cash flow, especially when it's time to move into their new home. This stress is even more heightened when the buyer is moving out of their existing home they are still trying to sell. Now instead of one house payment each month, they may worry about two.

The decision to purchase another home before the existing house has sold is definitely not an easy decision to make. So what happens when the buyer has found the next home of their dreams and they haven't sold their current home? They stress about selling their existing home before making an offer and they also stress about losing the opportunity to buy their dream home to somebody else. Sitting and waiting for their home to sell while monitoring the activity on the dream home is be enough to lose sleep over. A common solution is to write a contingent offer, but this method doesn't guarantee the seller or the buyer anything. An innovative solution from First Horizon Home Loans is The Interest Abatement Program. It's designed to minimize the associated stress of paying for two mortgages each month for a temporary period.

With The Interest Abatement Program, the homeowner receives an interest free mortgage payment on the new home for a period of 3 to 6 months. The reduced payment now improves the homeowner's monthly cash flow and affords them the benefit of:

Less stress about making two full mortgage payments
Interest free payments on the new loan for 3 to 6 months
Pay only principle and escrow during the first 3 to 6 months on the new home mortgage
Receive up to 7 more months to market their prior home before full payment begins on the new home
Able to buy their dream home before someone else does

So here's how it works, the interest portion of the monthly payment can be paid from seller or builder contributions as a creative, money saving solution. Here's an example on a $250,000 sales price with a loan amount of $200,000. The new principle and interest mortgage payment is $1231, but the buyer only needs to pay $189 per month. The cost to the seller or builder to place the buyers into their dream home is approximately $6200. It's a win win solution for everyone.

This program allows Realtors & builders to place more homebuyers into a home that may have otherwise faded away because of cash flow concerns. Contact me if you would like to discuss this program further, I would truly appreciate the opportunity!

Identity Theft...How To Protect Yourself

Kevin Fase, Senior Loan Officer, Mortgage Planner (Chase) — Sat, 14 Apr 2007 13:49:01 -0500

As a mortgage advisor to thousands of clients, people turn to me for help with their financial needs everyday.

Today I'd like to share with you something that I've recently started sharing with my clients. It's a little known secret about credit reports. But first, I'd like to say this. In my 10 years as an advisor, I have witnessed a major shift in the way lenders are attempting to attract new loan opportunities. The internet has no doubt made it easier for people to shop for a mortgage these days. The internet has also become a huge lead generation tool for many companies. Everyday thousands of pop ups and annoying web banners are flashing and dancing on our computers screens screaming for our attention. If you aren't shopping for a loan, it's very distracting and difficult to focus on what you are trying to read. If you are like me, you might page down just enough to avoid having to see this form of harassment. Today more than ever, lenders and lead generation companies are bombing us with this techniques.

Mortgage shoppers who click on an advertisement, LOOK OUT! You think you may be doing the smart thing by asking a couple lenders to contact you to compete for your business, but it's really much more than that. Give out your personal information for a free rate quote and you could be contacted by several dozen lenders. Credit bureaus can now legally sell your personal information within 24 hours, known as a trigger lead, to lenders looking to solicit people who just had their credit run for a mortgage. So you may think only a couple companies would be calling you and all of a sudden your email, postal mailbox and answering machine are flooded by mortgage companies wanting to talk with you at all hours of the day. What's worse, this can go on for months after you have already closed on your new loan! I've had clients personally tell me this first hand.

So how do you prevent your personal information from being sold to multiple lenders? The consumer credit reporting industry has made it easy for anyone to opt out and protect their personal information. You can call 1-888-567-8688 or go online to https://www.optoutprescreen.com/?rf=t. You must opt out at least 48 hours before your credit report is run to ensure your request is processed in time.

With all the identity theft today, which by the way is America's most common crime, we need to protect our personal information we've worked hard to establish. Bliss Sawyer, a mortgage lender at http://www.mortgagemarketingstrategies.com/ , has created a free report to share with our databases titled "ALERT: WHAT'S YOUR NAME WORTH". This is a valuable marketing piece designed to inform and protect ourselves and our client's good name. I hope you find it as useful as I have.

Buy, Build, Refinance or Remodel

Kevin Fase, Senior Loan Officer, Mortgage Planner (Chase) — Thu, 12 Apr 2007 23:17:37 -0500

Thank you for visiting my blog. Whether you are looking to buy, build, refinance or remodel a home, I welcome the opportunity to speak with you about your homeownership and financing goals.

At First Horizon, we make getting home with less stress our motto. We realize there are many facets to buying and selling a home and most could be a mystery to you. To learn more about the basics of buying a home or if you already own a home and are considering a refinance, then contact me of visit my website.

From my site you'll also be able to experiment with financial calculators to determine payments and your buying power. If you are ready to begin, my site has a checklist of the required documents to apply. Call me today or apply online from the convenience of your home.

One of the ways I deliver ongoing outstanding service is by being accessible. So if you are just curious about loan options or just want to know where interest rates are, call or send me an email.

Best regards, Kevin