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

New Jersey: Licensed by the N. J. Department of Banking and Insurance Delaware: Licensed Lender by the Delaware Office of the State Bank Commissioner.

ON-Time: Take Time Out For Planning

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Tue, 01 Dec 2009 09:11:12 -0600

ON-Time
Take Time Out for Planning

Have you ever had days, weeks, or even months go by when you were frustrated in your work activities because you failed to implement the things that you know you need to do in order to be more successful? Perhaps you've taken pages and pages of great notes at seminars on the subject of how to improve your business, only to return to the office the next day and implement none of it. The reason this happens to people is because they lack a plan. More importantly, it happens because they are not practicing ON-Time.

ON-Time is a time you set aside to work on your business instead of in your business. The simple fact is that in our daily routine, we are typically in a reactive state. The phones are ringing, the emails are coming in, there are voice mails to check, clients to meet with, staff members to assist. On and on it goes. During all this reactive behavior, we have very little time to work on the things that we need to put into place to take our business to the next level.

Get into a good habit by practicing ON-Time!

Leaving the office on a regularly scheduled basis to work on your business in a totally quiet, serene, and proactive environment is critical to your success in the long run. All successful business people practice some form of ON-Time.

Here's a suggestion on how to construct your own ON-Time schedule. Take out a folder and put it in your briefcase. Call this your ON-Time Folder. Every time during your normal work week you come up with an idea, hear about something or see something that could increase your business, throw it into your ON-Time Folder.

At least one full day per month, schedule time to leave the office and spend that entire business day somewhere outside the office. Make sure it is a serene place, or a meditative place, where you can practice ON-Time with a clear head. That means no cell phones and no interruptions! Take out your ON-Time Folder and work on the things you need to address to take your business to the next level. If you discipline yourself to doing this 12 times per year, the difference will be profound. Your level of success and your ability to take your business further will increase, hand in hand.

Stay tuned for more great ideas to build and manage your business!

Karl Peidl
Pleasant Valley Home Mortgage Corp.
305 Harper Drive, Suite 3
Moorestown, NJ 08057

856-252-1224

New Jersey: Licensed by the N. J. Department of Banking and Insurance. Delaware: Licensed Lender by the Delaware Office of the State Bank Commissioner.

Mortgage Rate Update

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Mon, 30 Nov 2009 13:40:45 -0600

Upside Down?
You Can Refinance Up to 125% of Your Home's Value

Even if you owe up to 125% more on your mortgage than your home is worth, you may be able to refinance. For example, if your home is worth $200,000 but you owe more than that, qualifying homeowners can now refinance up to $250,000.

According to First American Core Logic, more than 15.2 million homes had negative equity in June 2009. This represents nearly 33% of all mortgaged properties across the country. Where in the past, being upside down on your loan would have precluded your ability to seek relief, you now may have an opportunity.

The Making Home Affordable program was initially structured to accommodate homeowners with a new loan to 105% of their home's value. However, that amount has been increased to 125%. There are requirements to qualify including whether your loan is currently owned by either Fannie Mae or Freddie Mac. You can find out if your loan is held by either agency by visiting http://makinghomeaffordable.gov/loan_lookup.html.

Mortgage Interest Rates for Fixed Rate Mortgages*

Rates as of Monday, 30th November, 2009:

	Term	Conforming	APR	Payment per $1,000	Jumbo	APR	Payment per $1,000
30-Yr. fixed	360	4.625%	4.838%	$5.14	4.875%	5.005%	$5.29
15-Yr. fixed	180	4.250%	4.619%	$7.52	4.375%	4.598%	$7.59
7-Yr. fixed ARM	360	4.875%	5.092%	$5.29	5.500%	5.635%	$5.68
5-Yr. fixed ARM	360	3.875%	4.079%	$4.70	5.375%	5.509%	$5.60
3-Yr. fixed ARM	360	4.875%	5.092%	$5.29	5.375%	5.509%	$5.60
FHA 30-year fixed	360	4.750%	4.965%	$5.22	5.250%	5.383%	$5.52

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

Karl Peidl
Pleasant Valley Home Mortgage Corp.
305 Harper Drive, Suite 3
Moorestown, NJ 08057

856-252-1224

New Jersey: Licensed by the N. J. Department of Banking and Insurance. Delaware: Licensed Lender by the Delaware Office of the State Bank Commissioner.

How Purchase Loans Are Made: A Step-By-Step Walkthrough

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Mon, 23 Nov 2009 10:29:40 -0600

How Purchase Loans Are Made
A Step-By-Step Walkthrough

1.		Pre-approval - Get pre-approved for a mortgage and know in advance exactly how much house you can afford. Completing this step will also increase your negotiating power since you'll be viewed as a "cash buyer".

2.		Loan Search - Put yourself in the hands of an experienced mortgage professional, someone who will help you to determine which financing options best suit your needs today and in the future.

3.		Loan Application - It's crucial to supply the lender with as much information as possible, as accurately as possible. All outstanding debts as well as assets and income should be included.

4.		Documentation - Paperwork supporting the application must also be submitted. Information commonly sought includes pay stubs, two years' tax returns, and account statements verifying the source of the down payment, funds to close and reserves.

5.		The Hunt - Begin shopping for a house. Once you find the right one, the terms of the sale will be negotiated, including the price and potentially the terms of the loan being sought.

6.		Appraisal - Lenders require an appraisal on all home sales. By knowing the true value of the home, the borrower is protected from overpaying.

7.		Title Search - This is the time when any liens against the property are discovered. A lien may have been placed on a property to ensure payment of outstanding debts by the owner. All liens must be cleared before a transaction can be completed.

8.		Termite Inspection - While most purchase loans do not require a formal inspection for termite and water damage, some loans (especially government loans) allow for the possibility. If problems are found, repairs may be necessary.

9.		Processor's Review - All pertinent information will be packaged by your mortgage professional and sent to the lending underwriter, including any explanations that may be needed, such as reasons for derogatory credit.

10.		Underwriter's Review - Based on the information put together by the loan professional, the underwriter makes the final decision regarding whether a loan is approved.

11.		Mortgage Insurance - Many lenders require private mortgage insurance when borrowers put down less than 20 percent on a loan.

12.		Approval, Denial or Counter Offer - In order to approve a loan, the lender may ask the borrowers to put more money down to improve the debt-to-income ratio. The borrower may also need a bigger down payment if the property appraises for less than the purchase price.

13.		Insurance - Lenders require fire and hazard insurance on the replacement value of the structure. Flood insurance will also be required if the property is located in a flood zone. In California, some lenders require earthquake insurance on condominiums.

14.		Signing - During this step, final loan and escrow documents are signed.

15.		Funding - At this point, the lender will send a wire or check for the amount of the loan to the title company.

16.		Confirmation of Funding - The lender authorizes the disbursement of loan proceeds.

17.		Closing - Documents transferring title will now be officially recorded by the County Recorder.

18.		Congratulations, you are now a homeowner!

If you'd like to learn more, please give me a call. I'd be happy to speak with you!

Karl Peidl
Pleasant Valley Home Mortgage Corp.
305 Harper Drive, Suite 3
Moorestown, NJ 08057

856-252-1224

kpeidl@pvhmconline.net

www.karlpeidl.com

www.pleasantvalleyhomemortgage.com

New Jersey: Licensed by the N. J. Department of Banking and Insurance. Delaware: Licensed Lender by the Delaware Office of the State Bank Commissioner.

Mortgage Rate Update

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Thu, 19 Nov 2009 10:51:39 -0600

What's In Your Wallet?

In recent years, there has been an explosion in the number of credit card issuers and - perhaps more confusingly - in the types of rewards being offered by those credit cards. So now, you not only need to consider the rate and terms of your credit card, but also what rewards or other benefits it offers. The following information can help you consider what types of rewards are out there and which is best for you.

Airline Miles: If you travel frequently, then maximizing your airline miles may be the very best reward. And if you primarily fly on a single carrier, you will do the best to take their affiliated credit card, as they typically offer 'bonus' opportunities to earn extra miles.

Cash Back: There are several items to consider when focusing in on cash back cards, most importantly being the fine print. For example, some cards have tiers - which means, you won't earn the most cash back until you reach a certain amount of spending for the year.

Store Cards: Cards issued by particular merchants can be some of the most valuable cards if you are a frequent shopper at that store.

Points Cards: Many rewards cards offer general purpose points that can be redeemed for a wide variety of items, including airline miles, cash back, gift cards from a variety of places, gifts to charity or simply merchandise. These cards can be very beneficial due to the flexibility that they offer.

Mortgage Interest Rates for Fixed Rate Mortgages*

Rates as of Thursday, 19th November, 2009:

	Term	Conforming	APR	Payment per $1,000	Jumbo	APR	Payment per $1,000
30-Yr. fixed	360	4.750%	4.879%	$5.22	5.000%	5.131%	$5.37
15-Yr. fixed	180	4.250%	4.472%	$7.52	4.500%	4.723%	$7.65
7-Yr. fixed ARM	360	4.875%	5.005%	$5.29	5.500%	5.635%	$5.68
5-Yr. fixed ARM	360	3.750%	3.872%	$4.63	5.375%	5.509%	$5.60
3-Yr. fixed ARM	360	4.875%	5.005%	$5.29	5.375%	5.509%	$5.60
FHA 30-year fixed	360	4.750%	4.879%	$5.22	5.250%	5.383%	$5.52

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

Karl Peidl
Pleasant Valley Home Mortgage Corp.
305 Harper Drive, Suite 3
Moorestown, NJ 08057

856-252-1224

New Jersey: Licensed by the N. J. Department of Banking and Insurance.

Delaware: Licensed Lender by the Delaware Office of the State Bank Commissioner.

How Much Money Should You Borrow?

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Tue, 17 Nov 2009 12:21:57 -0600

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
Pleasant Valley Home Mortgage Corp.
305 Harper Drive, Suite 3
Moorestown, NJ 08057

856-252-1224

Mortgage Market Advisory Disclaimer

New Jersey: Licensed by the N. J. Department of Banking and Insurance.

Delaware: Licensed Lender by the Delaware Office of the State Bank Commissioner.

The Week Ahead Newsletter

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Mon, 16 Nov 2009 08:34:35 -0600

The Mortgage Market Advisory^TM

The Week of November 9, 2009

Provided by Karl Peidl

Last Week:

Mortgage pricing continued to improve slightly again last week for the third week in a row. MBS and Treasuries were both improved last week with the 10-year TSY closing at 3.42%.

The economic calendar was light last week and the market watched the Treasury note auctions closely since the Fed was not participating this time. The auctions went well on the 3yr and 10yr, but was a little light on the 30yr. Overall, strong demand continues for bonds - keeping a lid on mortgage pricing.

Additional good news for mortgage rates could be found in the spread between the conforming 30-year fixed and the benchmark 10-year TSY. The spread is back to more normal levels of 160 bps- meaning at the current 3.42% 10-year TSY, you could expect the 30-year fixed to be approximately 5.08%. The spread for Jumbo pricing is still very elevated and has another 60bps or so before it comes back to normal levels. All of this means credit markets continue to heal and normalize, but are still very fragile as secondary markets, x-Fed, are relatively nonexistent.

Consumer sentiment came in weaker than expected and still shows a consumer that is feeling the lingering effects of the recession, while corporations and Wall Street seem to be doing better. good news for would be employees as corporations are now running very lean and productive, which will lead to hiring and investment once they feel they are out of the woods of the recession completely.

Stock markets held up and closed near highs for the year. Gold also settled at a new record at over $1,100 an ounce as the US Dollar continues to weaken.

The Week Ahead:

This week brings us the release of six monthly economic reports for the markets to digest. With very important data scheduled for release three different days and relevant data four of the five days, we will likely see a fair amount of volatility in the markets and mortgage pricing this week.

Overall, look for any of the first three days of the week to be the most important with very important reports scheduled each day. The quietest day will most likely be Friday since there is no relevant data scheduled for release that day.

Since this is likely to be a fairly active week for mortgage rates, it would be prudent to maintain regular contact with your mortgage professional if still floating an interest rate.

MONDAY:

The first data is one of the most important reports of the week. The Commerce Department will give us October's Retail Sales figures early tomorrow morning. This data measures consumer spending, which is considered extremely important because it makes up two-thirds of the U.S. economy. It is expected to show a 0.9% rise in spending, meaning consumers spent much more last month than they did in September. This would be considered negative news for bonds because large increases in spending fuels an economic recovery and raises inflation concerns in the marketplace. If tomorrow's report reveals a smaller than expected increase in spending, bonds should react favorably, pushing mortgage rates lower. If it shows a larger than expected increase, mortgage rates will likely move higher tomorrow.

TUESDAY:

There are two reports scheduled to be posted Tuesday. The first is October's Producer Price Index (PPI) that is one of the two key inflation readings on tap this week. The PPI measures inflationary pressures at the producer level of the economy. There are two portions of the index that are used- the overall reading and the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices. If it reveals stronger than expected readings, indicating that inflationary pressures are rising, the bond market will probably react negatively and should drive mortgage rates higher. If we see in-line or weaker than expected numbers, mortgage rates should fall Tuesday. Current forecasts are calling for an increase of 0.5% in the overall reading and a 0.1% increase in the core reading.

Tuesday's second report is October's Industrial Production data. It gives us a measurement of manufacturing sector strength by tracking outpu t at U.S. factories, mines and utilities. It is expected to reveal a 0.4% increase in production. Stronger levels of production would be considered bad news for the bond market and mortgage rates, but this data is not as important as the PPI readings are.

WEDNESDAY:

October's Consumer Price Index (CPI) will be released at 8:30 AM ET Wednesday morning. This index is similar to Tuesday's PPI, except it measures inflationary pressures at the more important consumer level of the economy. The overall reading is expected to show an increase of 0.2% while the core data is expected to rise 0.1%. Weaker than expected readings would be good news for bonds and mortgage rates, while larger than forecasted increases could lead to higher mortgage rates Wednesday.

Wednesday's second report is October' s Housing Starts. This data gives us an indication of housing sector strength, but usually does not have a noticeable impact on mortgage rates. I don't expect this month's version to be any different unless it varies greatly from analysts' forecasts and the CPI matches expectations. It is expected to show a small increase in starts of new homes.

THURSDAY:

The Conference Board will release its Leading Economic Indicators (LEI) late Thursday morning. This is a moderately important report that attempts to predict economic activity over the next three to six months. It is expected to show a 0.4% increase, meaning economic activity will rise over the next couple of months. Generally speaking, this would be bad news for bonds. However, since this data is considered only moderately important, its results need to vary greatly from forecasts for it to affect mortgage rates.

Two-Month Rate Forecast:

With rates at multi-year or near historic and all-time lows, it's tough to expect that they have considerable space to decline much from here, especially in the face of a modestly improving economic climate and improving corporate earnings picture.

Rates that were lower earlier this year were fueled by an apocalyptic economic state and near-term view forward. While this has improved, investor lack of appetite to take risk, weak economic growth, and the low near-term prospects for inflation should serve to keep a lid on any serious increases, too.

We expect mortgage rates to likely wander in a range from about 4.875% to 5.375% on the Conv. 30-year fixed, but to be choppy in that range as the stock and bond markets search for new trend line.

This is only our opinion and cannot be guaranteed to be in the best interest of any or all parties. This service is provided for informational purposes only and is not intended for trading purposes. None of the information provided constitutes a solicitation, offer, or recommendation by NHLA to buy or sell any security, or to provide legal, professional, tax, accounting, or investment advice. Every lender's price desk has their own strategies and reactions to market movements. Our information is simply based on market movements and does not predict or report potential pricing adjustments by particular lenders.

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Mortgage Rate Update

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Thu, 12 Nov 2009 10:25:53 -0600

Mortgage Rate Update

Don't Wait for a Tax Return - Get That Money Now for Holiday Shopping

This time of year, millions of Americans find themselves wondering how they're going to pay for everything on their holiday shopping lists. Wouldn't it be nice if you had your tax return money now so you can use it for holiday spending? In a way, you can.

The IRS allows you to increase the number of dependants on your W-4 withholding form, meaning that less will be withheld for taxes from each paycheck. In the past, if you claimed greater than nine dependants, an explanation and approval may have been required. But the IRS has lifted this restriction. This lets you have more money in each paycheck instead of "loaning" the money to the IRS and having to wait for a refund.

But don't go overboard. You should only lessen the periodic tax withholding to match the expected refund. This way you are taking your refund as you go; instead of letting the IRS hold on to it.

Before you make the changes, consider visiting the IRS Withholdings Calculator to see how a change will impact your paycheck. Just visit www.irs.gov and type "Withholding Calculator" into the search bar at the top.

Mortgage Interest Rates for Fixed Rate Mortgages*

Rates as of Thursday, 12th November, 2009:

	Term	Conforming	APR	Payment per $1,000	Jumbo	APR	Payment per $1,000
30-Yr. fixed	360	5.000%	5.131%	$5.37	5.250%	5.339%	$5.52
15-Yr. fixed	180	4.500%	4.723%	$7.65	4.875%	5.026%	$7.84
7-Yr. fixed ARM	360	4.250%	4.375%	$4.92	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	4.375%	4.501%	$4.99	5.375%	5.465%	$5.60
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.

New Jersey: Licensed by the N. J. Department of Banking and Insurance.

Delaware: Licensed Lender by the Delaware Office of the State Bank Commissioner.

Karl Peidl
Pleasant Valley Home Mortgage Corp.
305 Harper Drive, Suite 3
Moorestown, NJ 08057

856-252-1224

First Time Homebuyer Tax Credit Extended Into 2010! Plus...A New Tax Credit for Certain Existing Home Owners!

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Fri, 06 Nov 2009 14:11:14 -0600

First Time Homebuyer Tax Credit Extended Into 2010!
Plus...A New Tax Credit for Certain Existing Home Owners!

It's official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009.

In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.

So Who Gets What?
The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.

Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Deadlines
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Higher Income Caps in Effect
The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.

First-Time Homebuyer Tax Credit - Frequently Asked Questions
Here are answers to some commonly asked questions about the tax credit.

What is a tax credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.

What is the tax credit for first-time homebuyers (FTHBs)?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is eligible for the FTHB tax credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How do I claim the credit?
For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).

Can you claim the tax credit in advance of purchasing a property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.

Are there other restrictions to taking the credit?
Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.

You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
You do not use the home as your principal residence.
You sell your home before the end of the year.
You are a nonresident alien.
You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.

Can you buy a home from a step-relative and be eligible for the credit?
Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.

Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit?
Yes.

Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years?
No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.

If you have any questions that fall outside the situations here, give me a call and if you do not have an accountant to speak with, I can refer you to one.

Karl Peidl

Loan Officer

Pleasant Valley Home Mortgage Corp.

305 Harper Drive

Suite 3

Moorestown, NJ 08057

856-252-1200 x1224

856-252-1240 (fax)

877-296-5454 (toll free)

Are You In for a Trick or Treat? Learn What Remains for Those Seeking a Home or Loan

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Fri, 06 Nov 2009 10:46:39 -0600

Are You In for a Trick or Treat?
Learn What Remains for Those Seeking a Home or Loan

The last weekend in October you were likely treated to a host of Halloween characters, all in search of treats, not tricks. People searching for a new home or a mortgage, whether they donned a costume or not, may have gotten a little of both.

Home loan seekers have been treated to great rates all year long since the Federal Reserve announced it would be purchasing mortgage backed securities, with rates diving below 6.00% since last December. However, if you are looking to buy a home, according to the Case-Shiller index, home prices increased for the fourth straight month, possibly signaling the end to home price declines. So, the question now is what lies ahead?

How About a Little Perspective?
Applications for home loans fell the last few weeks of October as average reported rates for a 30 year fixed rate climbed above 5.00% according to both the Mortgage Bankers Association of America and Freddie Mac. The reason most cited for the decline in applications was increasing rates. Which means that for many people a rate above 5.00% was the cause for a decline in applications.

Perhaps this could be for one of two reasons. The first could be that anyone who could refinance into a sub-5.00% rate had already done so. The second is that people could be thinking that either rates will fall below 5.00% again or that rates in the low 5.00% range are simply not that attractive.

If we were to take a look at home loan rates dating back to 1980, a span of nearly 30 years, the average monthly reported rate for a 30 Year Fixed Rate loan according to Freddie Mac was 9.07%. While the thought of a rate in the 9.0% range seems exorbitant today, today's rates were inconceivable prior to 2001...and especially in October 1981 when rates were a whopping 18.45%!

The chart below shows the average reported monthly interest rates since January 1980. This graph does not take into account the amounts paid to obtain these rates, which were as high as 2.6% in 1984, compared to 0.7% in 2009. The red line represents 7.00%, showing that rates below 7.00% were an abnormality prior to 2002.

The low rates we have seen this decade are largely attributable to the impact of the 9/11 bombing which launched global economies into a tailspin. The result was an aggressive lowering of rates from the Federal Reserve to stabilize the economy. The impact of low interest rates resulted in a rapidly and unsustainable appreciation in property values.

As property values started their return to "normal" we witnessed the plunge into our current recession. We also saw the Federal Reserve get into the mortgage backed securities (MBS) market, becoming the major buyer of MBS this year, driving rates to current and lower levels.

While rates may appear a little less attractive based on where they have been this year, do not let that cloud your judgment. Any home loan rate with a five as the first number followed by a decimal point is a fantastic rate, when all things are considered.

Just as Halloween Has Passed, So Will These Rates
In short, as the Federal Reserve begins to pull back their purchase of MBS, as was started in October, mortgage rates will rise. It is not inconceivable to believe we will see interest rates well above 6.00% at some point in 2010, in particular after March as the Fed is scheduled to wrap up its MBS purchase program on March 31, 2010. Regardless of where we have been, for those wanting a phenomenally low interest rate, acting sooner rather than later is the best decision.

Try These Numbers on for Size
For comparison sake, just to offer a little more perspective, if one were to look at borrowing $150,000 for 30 years, here are some principal and interest payments to consider. A rate of 5.25% would yield a monthly principal and interest payment of $828. The average interest rate of 9.07% since January of 1980 would yield a payment of $1,214 or nearly $400 higher. The highest interest rate of 18.45%, in effect in October 1981, would require a payment of $2,316, a whopping $1,488 a month more. Viewed from a different perspective, one could borrow $417,000 at 5.25% for $13 less a month.

Yes, admit it. We have become spoiled with the best home loan rates we have ever seen. Sure, everyone would love a 30 year fixed rate that starts with the number four. However, do not let rates off their lows deter you from making a decision that could save you thousands of dollars over the time you may have your next loan in effect.

What about Home Prices?
There is no shortage of data one can choose from to base an argument for whether or not home prices have bottomed. One thing is clear though; national data is only relevant for determining overall trends, not local realities. That said, the S&P Case-Shiller index is widely touted as an accurate assessment on both national and local levels for the areas they report on.

Indexed to 100 in January 2000, it is easy to see when home prices began their rise and how they became out of sorts with where they should have been. It's also easy to determine when home prices started their decline in mid-2006.

The chart below, showing a 20 city composite of home prices, also demonstrates what many like to point to in order to demonstrate that home prices have bottomed and are on their way to stabilization and appreciation. The last four months have each marked an increase in month over previous month comparisons; although still lower than the 12 month previous number that is often used for comparison.

The red line indicates the point that many are referencing as the bottom of home prices. Whether you are a buyer looking to take advantage of prices not seen since 2003 or a homeowner looking to refinance, this point of reference could be the trigger you need to make a decision to move forward. No one wants to pay more for a home than they could have and increasing values hopefully will make it possible for more people to rid themselves of higher priced loans.

Whether housing has made a bottom or not, first time home buyers (FTHB) have voted with their wallet, showing that home prices overall are now affordable and they have been buying en masse. Washington and the IRS, FTHBs have accounted for monthly sales volume as high as 50% or more of total sales this year.

What Now?
Whether you are looking to refinance or purchase a home, the best way to determine what you may be eligible for is to speak with a professional. They can assess your situation and help you make a decision that is in your best interest.

However, in order to make the best decision and take advantage of rates that historically will be viewed as the lowest we may see in our lifetime, sooner is better than later to pick up the phone. Regardless of what happens to home prices, we do know that interest rates are on the rise. The Federal Reserve will end their program for purchasing MBS next March putting pressure on home loan rates to rise.

Go on, pick up the phone, call your mortgage professional and say "Trick or Treat!" Sure, you might be a little late according to the holiday calendar but you just might find something to be thankful for.

Karl Peidl

Loan Officer

Pleasant Valley Home Mortgage Corp.

305 Harper Drive

Suite 3

Moorestown, NJ 08057

856-252-1200 x1224

856-252-1240 (fax)

877-296-5454 (toll free)

Mortgage Rate Update

Karl Peidl - Accredited Loan Consultant (Pleasant Valley Home Mortgage Corp.) — Thu, 29 Oct 2009 11:24:25 -0500

Mortgage Rate Update

Rate Lock Duration

Lock durations can vary for mortgage financing, but most lenders lock in the interest rate for 60 days from the date the loan application is submitted. As long as the loan is closed within that lock-in period, the lender honors the agreed upon interest rate.

Some consumers are misled by advertising that quotes unrealistically low rates based on 15- or 30-day lock durations. This is called 'short-pricing.' The lender basically knows the borrower doesn't have time to meet their conditions and have all the necessary paperwork in order within that brief time period. As a result, the lender is not obligated to honor the low rate that was listed in their advertising.

For simple refinance transactions, a 45-day lock-in period is more realistic. For purchase transactions, which are typically much more complex, you're much safer going with a 60-day lock, even though the interest rate might be a little higher than the rate you see quoted on billboards and the Internet.

Borrowers should make sure they have a written rate lock agreement, and allow themselves a reasonable amount of time to close their loan. I prefer to lock in all my clients as soon as their application is filed, rather than gamble with predicting short-term interest rate movement. My team and I focus more on assisting clients with long-term goals and management of their mortgage debt to secure a strong financial future.

Mortgage Interest Rates for Fixed Rate Mortgages*

Rates as of Thursday, 29th October, 2009:

	Term	Conforming	APR	Payment per $1,000	Jumbo	APR	Payment per $1,000
30-Yr. fixed	360	5.000%	5.131%	$5.37	5.250%	5.383%	$5.52
15-Yr. fixed	180	4.500%	4.723%	$7.65	4.875%	5.101%	$7.84
7-Yr. fixed ARM	360	4.250%	4.375%	$4.92	5.500%	5.635%	$5.68
5-Yr. fixed ARM	360	4.000%	4.124%	$4.77	5.375%	5.509%	$5.60
3-Yr. fixed ARM	360	4.375%	4.501%	$4.99	5.375%	5.509%	$5.60
5-Yr. Interest Only	360	4.125%	4.250%	$3.44	5.875%	6.013%	$4.90
FHA 30-year fixed	360	5.000%	5.131%	$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

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

Accredited Loan Consultant

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

Accredited Loan Consultant

609-878-7013

Accredited Loan Consultant

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