The most important marketing tool for any business owner, especially real estate agents, should be your personal website.   If a realtor does not make the effort to properly learn the fundamentals of SEO, it can mean the difference between a website being successful, or failing.    Success in terms of your website should mean that potential clients are finding you on the internet, picking up the phone and calling to ask you questions.    Fortunately, it is not extremely difficult to master good search engine optimization techniques, and there are various web based books that can teach you the basics.

The four most important aspects of great SEO are: on-page SEO, off-page SEO, keyword density, and back links to your site.    If you master these four elements, your website will be significantly better optimized than if you completely ignored SEO and rely on luck for the search engines to find your website.    Google, Yahoo, Bing and AOL don't place websites at the top of the rankings because they randomly select them.   You move to the top by making sure all of the pieces of the puzzle are properly placed.  

To optimize a website properly, your site needs to have good content and articles, or "on-page Search Engine Optimization".   By having keyword rich articles and website content material, the major search engines will be much more probable to rank your website highly for the keywords phrases you have selected.    Good on-page search engine optimization involves using keywords throughout your articles yet not engaging in what is known as "keyword stuffing", where key word phrases are overused making the information read the wrong way.    

This is where the term "keyword density" becomes important to your website.    Keyword density is simply how many times you have a targeted keyword inside your text or your content, and how long the content or blog is.   If you have content that is 400 words long, having a keyword density between 1 to 3% is generally ideal for SEO.    Checking out keyword density is pretty easy with a variety of free web based programs.

Off-page SEO is as significant, if not more important than on-page SEO.    Using sites like Active Rain, Twitter, Facebook and other social sites can do a lot to boost your off-page SEO.    Making content, videos, and other subject matter and submitting them to additional internet websites and blogs is a vital method to build up credibility for your web site.    Google takes this into account when it ranks your website.    Having other internet pages with a good page rank that hyperlink your websites is a very important solution to achieve higher rankings in the search engine results.    

Builiding off-page content, or backlinks to your site is very important and can take a lot of time.    It can be done by simply getting in touch with other online businesses that can link back to your site.     For Real Estate agents, a great link back to your site would be from your mortgage lender, broker, title company, home inspector, general contractors, landscapers, etc.    Anyone that you do business with is a potential opportunity for you to request a link.   The best forms of links are one-way links which come from one site to your own.   Take a little time to learn the types of backlinks and what might work most effectively for your website's search engine optimization.

One other thing that I would mention is that the search engines do not like duplicate content.     As a mortgage lender for 11 years, I spent a lot of money on template based websites, which you could have up and running in about an hour.     Although it is extremely tempting to be able to have a website done so quickly, a lot of companies (not all) will put the site together and have the same sites for 100's of realtors or mortgage lenders.     The only thing that really changes is the name and phone numbers.    The coding of the site is the same, the keywords are the same, and many other parts of the site are identical.    This can actually penalize you in the search engines.    Although it is easy to follow the lead of another realtor or mortgage professional, being unique is what will get you the most bang for the buck.

There are a lot of variables to SEO and for many people, it is exausting to keep up with new articles, blogs, tweets, videos, and all the other requirements neccessary to getting great placement on the search engines.    Google offers some great free tools.    Simply type in "Google SEO" in your search bar and you can read a ton of information on meta tags, descriptions, keywords, keyword density, etc.     You can always work with a reputable SEO company as well, but that requires you searching through all of the companies out there to find one that works and guarantees what they do.   

One of the sites I used to see how well my website was optimized was through a company that offers a free optimization tool.    You can see how well your site is optimized for website traffic.    It is another free service but gives you a great idea of where you stand as of today.   We all know that blogging can be a great way to find new potential buyers and sellers, but if you are short on time, you may need to call in the big guns!

Good Luck

The mortgage industry has gone through several changes in the last few years.   The ability to refinance your home loan has become increasingly difficult, and lenders are requiring borrowers to jump through more hoops than ever.   Many homeowners are trying to take advantage of historically low interest rates, but have been surprised by the numerous changes that have taken place and the high qualification standards.   There are a few things you should know prior to calling your mortgage broker.

You now need to have a very high credit score in order to qualify for a mortgage refinance.   In years past, it seemed that a pulse and the ability to fog up a mirror where the only requirements for refinancing.   Now, almost every lender requires a minimum of a 620 Fico score, and many require at least a 660.    Lenders will also charge higher interest rates for lower scores as well as cash out.   Make sure you get a copy of your credit report and review it for accuracy.   You can also improve your credit scores quickly by paying down balances on current debts.   It may be a very difficult task, but making sure your credit report is accurate can cost you thousands in the long run.

Homeowners will also need to exercise patience when attempting to refinance a home loan.   Due to the lowest rates that many have ever seen, mortgage lenders have been extremely busy with refinance activity.  In addition, the housing market that has began to show signs of life.   Lenders downsized in 2008 and are now a bit shorthanded to handle the flurry of business.   This means that the refinance process can take from 30 to 60 days with some lenders or brokers.   Increased underwriting standards have also extended the lending process, so borrowers need to know the entire process is now going to take longer than before.

The most painful aspect of the entire refinance process is the fact that most homes have significantly decreased in value.   The value of a home will determine the program and products available to homeowners.   Recent programs introduced by Fannie Mae and Freddie Mac will allow loans up to 105% of the value of the home.   Be prepared to hear a very low number when you ask about your value.   To find out if your home is owned by Fannie Mae (fanniemae.com) or Freddie Mac (freddiemac.com) you can visit their websites or simply call your lender to find out who owns your mortgage.   Please understand that owning and servicing your mortgage are not the same thing.   You pay your mortgage company, but they may not own your loan.

Points are now a common aspect when you attempt to refinance your home loan.   The rates you see quoted online, in the newspaper, and on the television commercials usually include points.   The days of the zero point, zero closing cost loans have disappeared.   Lenders no longer rely on servicing loans for years to come in order to make money, so fees will be charged up front.   You will also find that points can significantly reduce your interest rate and mortgage payment, and potentially save you thousands during the life of your loan.   Find out how long it will take to make back the total cost of points by talking to your loan officer.    Don't assume points are bad....you may be surprised at how much 1 point can reduce your mortgage payment.   You will need to have a good idea of how long you plan on staying in your home to determine if it makes sense when refinancing.

The mortgage industry is changing daily, and you need to work with a mortgage professional that understands these changes and can help guide you through the process.   To find out more about the options available for your mortgage refinance, call Tim Marose today at 240-463-3224 or apply online.

Last week I was off to the office when I received a phone call from a potential client.    The potential client and I had lunch plans that day, and he was calling to confirm our appointment, and to ask if I would mind driving.   Of course I agreed, and then detoured to the closest full service car wash.   With 2 kids, football practice, camping trips and weekend getaways, I was more than overdue for my next full service.

As I was about to pay, I heard a woman talking on the phone about a lock-box and trying to arrange an afternoon appointment.   I told her that I knew other people were busy in this industry besides me, and started a conversation about her business.    If we spent more than 2 minutes chatting, I would have been surprised.   She was a bit flustered about her showing, so we quickly exchaged cards, I gave her a brief description of what I did and what made my company a little different, and we both went on our way.

Later that night I found her business card in my pocket, and sent her a nice little email.   More times than not, these emails are not even returned, so I usually don't get too worked up about going into to much detail.   Just a little reminder about our meeting, a little more about what we can do, and I was done.

To my surprise, she emailed the next afternoon, told me about the lenders she was working with, and how slow business had been.   She promised to keep me in mind on future purchases and to keep in touch.   She was extremely pleasant, but again, I have received the brushoff so many times, I felt that was the direction the email was headed.

I wanted to send one more email and push this a bit harder.   I explained how much I enjoyed our conversation, and would send her the next deal I received in an effort to establish some type of relationship.   I threw in a few one liners, and hit send.

She responded back with a LOL response, and stated she would be anxiously awaiting the referral.   I would guess she has heard this response many times before from mortgage professionals, and wasn't about to hold her breath.

I know she could not have been more shocked when I called her later that evening with the name and phone number of a pre-qualified hom buyer, in the same neighborhood she was showing the house the day before, and looking for a realtor to guide her through the process.    I still can remember the laughter on the other end of the phone and the shock in her voice.    In a matter of minutes, I made a realtors day!

I only had one stipulation.....I do the financing!    That was a pretty easy sell considering.    For all of you realtors out there....Don't be afraid to make a loan officer's day:-)

The DC Metro area was one of the fastest appreciating areas in the country for homes during the last 5 years.   Like the old saying goes, “What goes up, must come down”, and many have felt the pinch of the housing crunch over the last year.   Falling home prices have caused financial hardship for many, while others have found relief with a debt consolidation loan.

A debt consolidation loan simply uses the equity in the home to pay off other expenses.   Let me give you an example of a recent situation and how a debt consolidation loan changed their monthly expenses.

Mr. and Mrs. Homeowner owe $147,000 on their current mortgage.   They paid $160,000 in 2004 with just 5% down.  The house, even after depreciation in the last year, is worth $300,000.    They currently have a 7% mortgage and their monthly principal and interest payment is $1011 a month.

Mr. and Mrs. Homeowner have used their credit cards a lot in the last year.    The cards have been used for everything from household expenses to vacations.   They have a Visa card with $13,000 balance and a minimum monthly payment of $390.   They owe $7200 on a Mastercard, minimum monthly payment of $216.   They have another Visa card with $6800 and a payment of $204, and finally, two department store cards with a $3,000 balance and monthly payments of $90.  

Total, they owe $30,000 and pay $900 a month in minimum payments to credit cards.  This is just the minimum required!    Most credit cards range in interest rates from 13.99% to 24%.   If they continue to make just the minimum payments, and don’t charge again, it will take 30 years to pay them off!

With a debt consolidation loan and minimal closing costs, their new mortgage balance is $180,000.   The new principal and interest payment is $1079 on a 30 year mortgage.   This is only $68 more than they were paying before, and all of the credit card debts have been paid off.   They will save $831 per month by consolidating, and now the interest is tax deductable. 

If they want to pay the home off sooner, they could take out a 15 year mortgage, and their new payment would only be $1494 per month, and all the credit cards would still be paid.  They just shortened the term of the mortgage by 11 years AND consolidated all of the debt!

To find out what a debt consolidation refinance can do for you, visit www.tmmortgagegroup.com today or call 1-800-696-1424.

Timing plays an important role in so many things in our life.   There is something to be said about being in the right place at the right time.    Buying a stock, purchasing a house, or asking for a raise, are all about timing.    Now, refinancing also requires a little bit of timing as well.

Earlier today, I spoke to a couple looking to refinance their current mortgage.   They bought a few years ago and decided to take out an interest only loan.   This is simply a loan that does not require any of the principle to be paid monthly.  Rather, you pay just the interest each month and your mortgage balance remains the same.    The loan my customers are in is a 5 year adjustable, so in another couple of years, the interest rate, along with the payment will change.   They will be required to pay principal in a few years as well.

This morning was a great morning for many mortgage professionals.   Rates opened very low and all signs pointed towards a busy day.   I was working with quite a few customers that were about to lock, I locked a few early in the day.   The customers I spoke about above called in this morning to ask a few more questions.   I answered all their questions, but they decided that they wanted to wait it out a little longer and see if maybe they could get a little closer to 5%.   Apparently, 5.5% wasn't a strong enough rate at the time.

At 1:47 this afternoon I got my first email from a lender stating that they were going to increase interest rates.   I immediately called my customers to inform them of what was happening.   One problem....voice mail.   I asked them to give me a call back so we could lock before we saw any other major increase in rates.

3:11 PM.   Same Company sent over a second rate change for the day.   Rates were still increasing, and all the companies were in line.    I received about 15 emails in the next 10 minutes about rates worsening.   (I hate this word and would love for someone to come up with something that does not sound like my 5 year old talking).   I figured since I already called once, I would send them an email and let them know what was going on.   We were so close this morning, but they just were not ready to pull the trigger.   I almost locked their loan for them at this time on a hunch, but didn't.   This may be a huge error on my part, but felt that I would move when they were ready.

5:50 PM.   Same company, same result.   Prices Worsened Again!    Still no contact with the borrower.   One company I worked with had increased interest rates by .50% since earlier this morning.   On a $300,000 loan amount, this is equivalent to $95 a month over the next 30 years.   One day's pricetag is $34,200 over the next 30 years!

Now, I get to sit back and wait for my clients to call and tell me that the new payment is going to be too high and they will just sit back and wait.   After all, they have 2 plus years remaining on their current adjustable rate and can live with where they are now.   But what if rates don't come back down?    In the back of my mind, I believe they will, but what if?    Was the reward of $19 a month worth the risk of $95 a month?

Now before I get the emails about rate protection and negotiating rate, I understand and know all of this.   I locked a few loans today and will offer my clients even better rates if they decrease.  But in this case, I was completely at the mercy of my client.   Should I have been more pushy?    Should I have sold them harder?   What's the saying?   You can lead a horse to water.....

So, my one lesson I would like to give to anyone out there considering a refinance in the next few months, or for those of you like me in the profession.   Make sure you have a rate in mind that will make you move!  

Once all of the short term and long term goals are discussed, make sure everyone knows what rate will make things move forward.   If I would have got a rate that my clients were happy with up front, I could have locked them without talking to them this morning and everyone would have been happy.   I try to do this with all of my refinance clients, but failed to do so on this one.   Now I have to sit back and wait for the call.   I don't know what is more fun, waiting for the call, or watching the rates skyrocket all afternoon.    Good stuff!!!

The credit crisis got a much needed shot in the arm this week with the government takeover of Fannie Mae and Freddie Mac.   Immediately we saw a nice improvement to interest rates as well as many sectors of the stock market.   Nobody knows if this is going to be the answer to the housing crisis, but we do know that rates are much lower than they have been in months, so maybe now is the time.

Within the next few months, over 1.2 trillion dollars in mortgages are about to reset.   Many of these customers have been waiting and gambling with rates before refinancing.    Unfortunately, 40 to 80% of these borrowers currently in adjustable rate mortgages and interest only mortgages are going to see a significant payment shock.    In other words....their payments are going to skyrocket!

There are a few more pieces that fit into this equation, but one area going to be hit the hardest is the Alta-A and Jumbo market.    Currently, 15% of all Alta-A customers (those with slight credit issues) are currently at 100% Loan to Value.   This means they owe as much if not more than the house is worth.   The Jumbo market is being hit even harder.   25% of all Jumbo borrowers are at 100% LTV or higher.

Many believe home values may continue to drop, although we are very close to the bottom.    Why would current home owners gamble with interest rates AND decreasing home values?   Every day I work with homeowners that qualified a few months ago, but a drop in home value now eliminates them from a refinance.    If you add up the numbers and a refinance makes sense now, don't put it off.    This market can change tomorrow and you may miss out on something that could have really helped your financial situation.

We have all read about the homeowner who has taken out the 50 year, interest only, adjustable loan 3 years ago and now that the payment is recasting, they can no longer afford their home.    It seems you can't read a blog or newspaper article about homeowners, and not find one who hasn't  fallen behind on payments.   Now these homeowners are looking at bankruptcy, foreclosure, short sales or attempting a loan modification, just to survive.    If you read my last post, you know I feel for these people, and hope a solution is right around the corner.   However, I want to explore a different borrower that seems to have done everything right, but cannot catch a break.

The recent change in the economy has caused many to fall behind one way or another.   The increased prices to gas, milk, bread, and everything in between has caused even the most prudent consumer to be stretched beyond their means.    Homeowners that have paid their mortgage on time for years and are now facing tough times, cannot seem to catch a break.    Have we now reached a point where we cannot extend help to those that have been so good to us in the past?    Aren't we all allowed a moment to gain our composure and regroup?  

I see it in sports all the time.   I watch NFL teams so out of sync that they need to call a timeout and regroup and regain some composure.   Why doesn't this work for some homeowners?

If I am a homeowner and have paid my mortgage on time for the last six years without a hitch, and suddenly I had some financial hardship, can I call a timeout?   Shouldn't my past give me some type of breathing room?   Doesn't a flawless payment history for 6 years on EVERYTHING and a 750 FICO score allow me to get something other than a collection call from my mortgage company?  

NOT IN THIS ENVIORMENT!

It really is sad to see what has happened in the mortgage industry, and how so many bad loans have caused so much paranoia amongst lending institutions.    Mortgage companies are no longer hiring wholesale account executives to sell, they are now staffing up on collection agents and loss mitigations specialists.  At what point do we realize that everyone, regardless of Credit, Capacity, and Collateral, are going to run into a road block along life's journey?   It can happen to anyone, even you!   

My question is simple.   Who is going to be there to help those that have done right so many times in the past, and have always figured out a way to make a payment, now that they have fallen onto hard times?   I want to help, but there is only so much I can do.    The bailout by the Federal Government?   Hey, I don't want to get political here, but most programs I have seen are for those that have fallen behind on their mortgage after it has adjusted.    What about Mr. and Mrs. Jones that are in the 30 year fixed at 6.5% and have had some medical issues the last three months and their mortgage history has suffered?    Do we have some economic stimulus for these people?

I have heard the saying many, many times....LIFE IS NOT FAIR!    I understand this now more than ever.    I just wish there were more ways to make the playing field a little more even.

ATM's charge high fees when you withdraw your OWN money from a competing bank's machine.   This fee ranges from $2.00 to as high as $10 if you ever needed to get some cash from a Casino in Atlantic City.   It is absolutely insane that we pay these high fees in order to access our own cash, but I have to tell you, it is a lot cheaper than another method many people use...Refinancing!

In the past 5 years, many homeowners have used their house like their own personal ATM machine.    Homeowner wants to put on new siding....Refinance!    Homeowner wants to put on an addition, paint the house, take the kids on a vacation, shopping spree, new car, vacation house, new lawn mower, new basketball hoop, college education...Refinance!

I know this sounds strange coming from a mortgage professional, and I do make my living through refinances, BUT it is not always the best solution.    Many different variables go into a refinance along with fees.   Deciding to take the plunge needs proper planning, but more importantly, it takes a pad, a pencil, a calculator, and an honest mortgage professional to guide you along the way.

Many sub-prime loans were taken out with some interesting options and descriptions in order to create a lower payment.   Many of these refinances were done based on the notion that the value would increase forever, and more equity would be available later.    Some really paid the price because of the product chosen.   Here are just a few examples of these exotic products:

Interest Only loan - homeowners pay only the interest that accrues on the loan.  They are not required to pay any of the principal.   This offered homeowners a lower payment on which they could qualify.

40 and 50 year terms - in order to reduce the monthly expense and qualify for a lower payment, many borrowers were offered longer terms.   By stretching out the loan to 40 or 50 years, payments on loans would decrease several hundreds of dollars, allowing homeowners to buy or refinance more house.

Negative Amortization Loans - The "Neg -AM" loan actually allowed borrowers to pay less than the interest each month.   The loan balance on this product would increase each month because homeowners were not required to pay the interest accruing on the home.    Many homeowners were losing hundreds of dollars in interest each month.

The "Fixed - Adjustable" Loan - this is a term created by sub-prime lenders that created the illusion borrowers were in a fixed product.   The "fixed" period lasted for 1, 2, or 3 years, then the loan would adjust.    Many times these loans were sold with high margins which would increase interest rates by 2 or 3 percent.    Often times these are considered "teaser rates".  (This is a term I have heard from many homeowners trying to refinance in the last year.   In my opinion, it was a tactic to trick borrowers into specific loans)

Most homeowners in the products above have already come to realize the product was not what they were expecting, and some are finding out the hard way that a drop from a 50 year term to a 30 year term, regardless of the rate, makes a pretty significant dent in their monthly budget.   

I just wonder how many people in the loans described above actually took the loan not to lower their rates or consolidate debts, but to use the money for something more enjoyable.   I can tell you from experience, many just refied because they were accustomed to a lifestyle and needed some cash to continue.    Now they are paying the price.

When it comes to a refinance, first ask yourself the question..."what am I trying to do?"   Do you need cash for a necessity, or are you trying to keep up with the Jones?    Can you save for the next several months to get what you want?    Do you have money in a rainy day fund that you can use?    What is in your checking or savings account?  

Often times, a Refinance is a Great Option and can accomplish many goals!   Decreasing your rate, shortening your loan term, consolidating debts, getting out of an adjustable and into a fixed are all excellent reasons to refinance.   You still need to run the numbers and make sure it makes sense.   Talk with a mortgage professional that is looking out for your best interest, and will tell you if a refinance is not the best option.

To find out more about refinance opportunities and whether a refinance makes sense for you, check out our website today at www.tmmortgagegroup.com or call 1-800-696-1424.

My cell phone rang again today.   Another potential borrower looking to refinance off a piece of my direct mail.    I don't think I get more excited than when I hear "I got a piece of mail from you and I would like to refinance.   Can you help me?"   The excitement is one thing......REALITY IS ANOTHER!

In the last 6 months, I have talked to at least a hundred homeowners that are upside down on their house.   They owe $200,000 on a house worth $150,000.    It is so difficult to do, but I have to call back and break the bad news to the homeowner.   Most already knew before even calling me.   They have tried in the past, have been promised the world, and never heard back from the loan officer they were dealing with.    I understand why a loan officer wouldn't want to call back, but it is the least we can do for a homeowner.

My thought process is simple.   Homeowners need help, but more importantly, they need a bit of advice and a little education.   At the very least, I offer my potential borrowers a game plan as to what to do over the next 6 months to a year, along with a little knowledge.    Some are only months away from help.   An FHA loan at 97% LTV may be the solution in December, but we need the housing market to pick up before we can do anything.   I never give a time frame, but I do tell all my borrowers that real estate goes in cycles, and hopefully, we are at the bottom of this one.   A good payment history and some luck will get them out of their jam in the future.

Something simple I do that I find so many mortgage professionals neglect to do is go over the credit report with potential clients.   How do you fix something that is broken without knowing which part is messed up?   A simple 5 minute conversation, along with a little hand holding can change a turn down into a client in 6 months.   Most borrowers don't know the difference between a 700 fico score and a 530, other than the obvious 170 points.    How does a borrower improve credit and what steps can a borrower take?   5 minutes of my time and at least I feel like I am contributing to the healing of this mess that we are in right now.

If the value of the house has dropped significantly, the time frame is much longer, but I am not going anywhere!   Maybe I can't help the homeowner for a year or two, but I will still need to close loans in 24 months won't I?    Any call I ever recieve is a potential client......I just don't know how long it is going to take.

I am sure there are many buyers out there that cannot qualify for a loan right now.    Just remember, they are renting now, but they are going to be a buyer some day.   You just don't know when.   It makes sense to be there when they are ready and qualified to do so.

Is it possible that someone can benefit from decreasing home values, record setting foreclosures, short sales and a volatile economy?   Not only is it possible, it is happening daily!    Home Buyers are finding bargains on every corner and now the buyer seems to be holding all the cards.  

We have all heard the saying, “what goes up, must come down”.   This is true of the housing market.    Values skyrocketed since 2003 and now we are seeing a correction.    Housing values are going to increase again, just not like they have in the past.    15 to 25% appreciation is a dream, but purchasing at the bottom of the market will show you some aggressive appreciation over the next 5 to 10 years.

The 100% loan is gone unless you are a Veteran.   Stated loans were called “liar loans” for a reason.   They have vanished!   Reality has set in for lenders and borrowers must prove income, have good credit, and have money for a down payment.    If you are one of these borrowers and are currently looking for a new home, you may be getting the deal of a lifetime!

A seller concession (kind of like a cash back rebate) can help offset most closing costs in an FHA loan.    This loan only requires a 3% down payment (which can be a gift) and an average credit (580) score or higher.    Rates on these loans are very close to conventional rates and higher loan amounts (up to $729,750) are available through the end of 2008.

Debt Free, money in the bank, a good income and a good credit rating?    Start looking on the corners for that “deal of a lifetime”!

To learn more about loans available in this buyer’s market, check out www.tmmortgagegroup.com or call 1-800-696-1424.