wwwmichaeljmcglynncom: Risk Rate Relationship - 12/11/17 11:31 AM
Regardless of what a lender quotes on mortgage rates, the actual rate a borrower pays is based on a number of variables. Lenders determine whether to loan money and at what rate based on the risk involved with the transaction.
Factors that increase the risk that the loan will be repaid will proportionately increase the interest rate charged to the borrower. If the risk becomes too high, the loan will not be approved.
Loan amounts – conventional mortgages above conforming limits as set by Fannie Mae and Freddie Mac are considered jumbo loans and generally have a higher interest rate. FICO score … (0 comments)

wwwmichaeljmcglynncom: Pre-approval is Good for Everyone - 12/10/17 03:48 PM
Buyer’s mortgage pre-approval is good for everyone in the transaction. It saves time, money and removes the uncertainty of knowing whether the buyer will be qualified after negotiating a contract. The direct benefits include:
Looking at “Right” homes - price, size, amenities, location Find the best loan - rate, term, type Uncover credit issues early - time to cure possible problems Negotiating power - price, terms, & timing Close quicker - verifications have been made There is a significant difference in having a trusted mortgage professional take a loan application and run all the necessary verifications compared to going through calculators … (3 comments)

wwwmichaeljmcglynncom: Investing on Your Side of the Fence - 12/03/17 10:34 AM
The grass tends to look greener on the other side of the fence. Maybe that’s why some people invest in things they don’t understand. It has been said that the grass is just as hard to mow on the other side of the fence so stay with what your most familiar.
Single-family homes used for rental property give a person a chance to invest in something they understand: a home. They also have distinct advantages over other types of investments.
An investor can borrow up to 80% of the value at fixed interest rates 30 years. The financing creates leverage so that the … (4 comments)

wwwmichaeljmcglynncom: Protecting Your Credit - 12/02/17 02:55 PM
One of the “big” three credit bureaus recently announced that a massive hack has exposed the personal information of up to 143 million people. To add perspective to that statement, that is about two-thirds of American credit card holders or close to half the population of the United States.  Part of protecting your credit is being vigilant and making it difficult for thieves to steal your identity. 
If you suspect you are a victim of identity theft, an initial step is to place a fraud alert on your account. Contact one credit reporting company (Equifax, Experian or TransUnion), tell them you are an identity … (3 comments)

wwwmichaeljmcglynncom: Deductible Dilemma - 12/02/17 01:16 PM
The purpose of insurance is to shift the risk of loss to a company in exchange for a premium. Most policies have a deductible which reduces the amount of the claim that is paid by having the insured share in the first part of the loss.
In the process of managing insurance premiums, policy holders often consider higher deductibles to lower the premium. Lower deductibles mean less money out of pocket if a loss occurs but also results in higher premiums. Higher deductibles result in lower premiums but require that the insured bear a larger part of the loss.
A … (14 comments)

wwwmichaeljmcglynncom: Your Home's Equity Could Be the Answer - 12/01/17 04:14 PM
A home equity line of credit, HELOC, is a mortgage loan made to homeowners to be used on an as-needed basis. A lender, such as a bank, will approve a borrower for a specified amount based on the equity in their home and all the necessary paperwork is signed to authorize the loan.
The line of credit amount is available to the borrower and no interest is due until some or all the money is used. When the money is paid back, the line of credit is again available in full to the borrower.
The specifics of the repayment will … (2 comments)

wwwmichaeljmcglynncom: Home Safe Home - 09/24/17 10:35 AM
Home is a place you should feel safe and secure. Sometimes, we take it for granted and unfortunately, we do need to remain vigilant about things we do that could compromise our safety. Here are a few tips to consider:
Everyone loves an inviting home including burglars. Make sure it looks occupied and is difficult to break in. Always lock outside doors and windows even if you’re only gone for a brief time. Lock gates and fences. Leave lights on when you leave; consider timers to automatically control the lights. Keep your garage door closed even when you’re home; don’t tempt … (2 comments)

wwwmichaeljmcglynncom: Other People's Money for College - 09/07/17 02:59 PM
Consider the goal of funding a child’s college education in the future. If “other people’s money” in the form of a scholarship is not a possibility, there still may be another way to use some “other people’s money.”
A $25,000 investment into a mutual fund paying 5% would earn $1,250 in the first year. Alternatively, the $25,000 as a 20% down payment to purchase a $125,000 rental home appreciating 3% a year would have gone up by $3,750 or three times that of the mutual fund in the first year.
The mutual fund’s growth depends on the value of the … (0 comments)

wwwmichaeljmcglynncom: Assumptions are an Alternative - 08/20/17 02:23 PM
In the late 80’s, both FHA and VA began requiring buyers to qualify to assume their mortgages. The main reason there haven’t been many assumptions in the past 25 years is that interest rates have been steadily going down and if a person has to qualify, they might as well do it on a new loan and get a lower interest rate.
Based on projections by Fannie Mae, Freddie Mac, the MBA and NAR, rates for the second half of 2017 and 2018 are expected to be higher. When interest rates on new mortgages are higher than the rates of assumable FHA … (1 comments)

wwwmichaeljmcglynncom: Family & Friends Mortgage - 08/06/17 03:36 PM
Anytime a lender and borrower can agree on rates and terms, it can be a good match but IRS has specific rules that govern the transaction especially when the parties are family or friends.
The loan must be done in a business-like manner with a written note specifying the loan amount, interest rate, term and collateral. IRS requires that the mortgage be a recorded lien to allow the interest deduction.
Sometimes, a friends and family situation might have a less than normal interest rate on the mortgage. However, the rate charged in the note is regulated by the minimum applicable federal rate which … (0 comments)

wwwmichaeljmcglynncom: Down Payment Problem - Are You Sure? - 08/03/17 03:30 PM
There is increasing difficulty for first-time home buyers to save for their down payment as indicated in the graph.  Several factors that contribute to this trend include rising rents, rising home prices, student loan debt and flat wages.
Some would-be buyers feel they cannot buy a home today but a large part of those decisions may be based on inaccurate assumptions.
Nine out of ten non-owners believe they need ten percent or more for a down payment. The typical down payment for first-time buyers is six percent. VA has 100% loan programs as well as USDA for certain qualifying areas … (1 comments)

wwwmichaeljmcglynncom: Don't Have a CLUE? - 07/21/17 01:37 PM
If you haven’t heard of a CLUE report, it has nothing to do with the table game searching for a murderer. It is a report showing the insurance claims on your home and car for the past five to seven years.
This database is used by insurance companies to evaluate risks and determine rates. C.L.U.E. stands for Comprehensive Loss Underwriting Exchange. Rates can be increased not only due to legitimate claims but data entry errors also. Sometimes, simply asking a question without filing a claim can be logged as a claim.
For that reason, similar to verifying the accuracy of your credit report, … (1 comments)

wwwmichaeljmcglynncom: Emergency Kit for the Car - 07/15/17 03:41 PM
Mickey Mantle said “If I knew I was going to live this long, I’d have taken better care of myself.”
Similarly, if people planning their summer travel knew they were going to have an emergency, they would have the right things available. Only 5% of drivers carry all recommended emergency supplies in their cars.
The Federal Emergency Management Agency (FEMA) recommends that all American have some basic supplies on hand in order to survive for at least three days if an emergency occurs. Some of these things would be more important if you lived or traveled in remote areas.
Reflective hazard triangle or … (2 comments)

wwwmichaeljmcglynncom: What Can You Expect? - 07/14/17 03:31 PM
Businesses must treat customers fairly if they expect to do business with them again or get recommendations to their friends. Customers of stores like Nordstrom’s understand that a salesperson is an employee and represents the company.
The line becomes less clear in some industries, especially ones that involve real estate. Agency is a legal relationship authorizing a person to act for or in the place of another. It involves responsibilities that exceed treating a person fairly.
The duties a buyer or seller can expect to receive from a real estate salesperson or broker include but are not limited to honesty, … (1 comments)

wwwmichaeljmcglynncom: Hands-Only CPR - 07/09/17 12:26 PM
Hands-only CPR can save lives.  The American Heart Association states that "Almost 90% of people who suffer out-of-hospital cardiac arrests die.  CPR, especially if performed in the first few minutes of cardiac arrest, can double or triple a person's chance of survival."  Most people who survive a cardiac emergency are helped by a bystander.   
Check for responsiveness – shake the person and shout “Are you OK?” Call 9-1-1 – either tell someone to call or make the call yourself Compress - Push hard and fast in the center of the chest at a rate of 100 per minute. The victim … (3 comments)

wwwmichaeljmcglynncom: Must Be This Tall to Ride - 07/05/17 11:38 AM
Surely, you remember being a child at an amusement park when after having stood in line with your friends and family, waiting to get on a terrific ride, you discovered the sign that read, “you must be this tall to ride.”
Not only was it disappointing, it was slightly embarrassing. You never want to go through that again.
A remarkably similar situation occurs when people are buying a home. After finding the right home and negotiating the contract, they find out that they don’t measure up financially.  It’s not something that anyone wants to go through if they have a choice.
Regardless of what … (2 comments)

wwwmichaeljmcglynncom: Would-be Buyers with Student Debt - 06/30/17 02:07 PM
59% of non-owners are not comfortable taking on a mortgage with their student debt according to the Aspiring Home Buyers 2017 survey. It is estimated that the college graduates have an average of $37,172 in student debt.
Fannie Mae, who has loan programs with as little as three to five percent down payments, has announced changes to how student loan debt is treated that could make the difference in qualifying for a mortgage.
For the 5 million borrowers who participate in the reduced payment plans, actual payments are considered for calculating debt-to-income ratio rather than maximum payment amount.
Non-mortgage debts paid by another party for … (0 comments)

wwwmichaeljmcglynncom: Good Info - Good Decisions - 06/28/17 01:12 PM
While low inventory is certainly challenging buyers, not having a clear understanding of mortgage financing is also causing issues. By having good information, they are able to make better decisions as well as compete favorably.
Most buyers don’t realize how the mortgage rate is determined for a borrower. While annual income is important, a good credit score, low debt-to-income ratio, loan-to-value ratio and ability to repay the loan are vital concerns.
A variety of myths seem to permeate the market such as rates are set and released once a day; FHA loans are for first-time buyers only; pre-qualification commits the … (2 comments)

wwwmichaeljmcglynncom: Reasons to Refinance - 06/25/17 09:52 AM
Regardless of the reason to refinance a home, the basic question to ask is: “Do you plan to live in the home long enough to recapture the cost of refinancing?” There are always expenses involved in refinancing which can be paid in cash or rolled into the new mortgage.
From a strictly financial standpoint, the break-even point is achieved when the cost of refinancing has been recaptured by the monthly savings. It would take approximately 23 months to recapture $4,000 of refinance costs with a lower payment of $175 a month.
Lower the rate Shorten the term so that the loan will … (0 comments)

wwwmichaeljmcglynncom: Indecision May Cost More - 06/15/17 12:10 PM
“More has been lost due to indecision than was ever lost to making the wrong decision.” Interest rates have as much effect on housing costs as price and when they are both trending upward, it can be very expensive to wait.  There can be some legitimate reasons for postponing a purchase such as needing to save the down payment, improve your credit or waiting to find out about a possible transfer. The problem is that prices and interest rates could, and very likely will, go up in the future. If the price of $250,000 home went up 5% and the interest … (1 comments)