Mortgage by Randy
monthly update to our clients, colleagues, family & friends
By: Randy Mitchelson, October 2009
===============================================================================
In Issue 19 We Touch On:
Obama Eases Underwater Refi Rules
Free Identity Score
Free Music Online
It must be Fall. This week in Southwest Florida we saw our first temperature reading in five months that begins with a "6". That is not to brag, just a bit of reality of how hot we have had it since May. Speaking of "hot", the stock market has a lot of people excited. The Dow has ballooned 50% from its 2009 lows. Does that mean our recession is over? HECK NO! One has nothing to do with the other. The economy is driven by jobs and interest rates and credit. The stock market is driven by pure human emotion. Another 500,000+ of our fellow Americans lost their jobs last month. That was applauded by some politicians as a good sign since it was down from over 600,000 from previous months. A more accurate assessment is that we are "less bad". When you see the kinds of statistical games our government plays with employment data, you'll see just how silly it is to hang a hat on the figures as a sign that the worst is over.
The current newsletter and all prior newsletters are archived at the Mortgage by Randy blog. Bookmark it and share with your friends and family. You can make your own comments and feedback as well. Time for the news...
Mortgage Market: Rates Drop and New Obama Rules Help More Homeowners Refinance
Interest rates remain low. 30 year fixed rates are hovering around 5.00%. While the availability of certain kinds of credit might still make getting a loan difficult, the price of that money has rarely been better. Borrowers have noticed this, too, and with the weeks-long gentle decline in rates has come increasing purchase and refinance activity. The Mortgage Bankers Association reported more than a 13% gain in purchase applications and an 18% gain for refis.
Existing homeowners that are upside down on their mortgage have new relief thanks to the Obama administration. Homeowners that owe 25% more than their home is worth may be eligible for refinancing assistance through the expanded Housing Rescue Program. For example, if your property is worth $200,000 but you owe $250,000 or less on your first mortgage, you may be eligible. Visit the Making Home Affordable website for more information about eligibility.
Personal Credit: Free Identity Score Service - Try It !
Identity Theft is the number one crime in the United States for the ninth year in a row. Even your author was victim to a perpetrator earlier this year. It can happen to anyone, anytime. My ID Score is a free service which provides you with a quick assessment of your risk profile. It only takes a minute to complete and there is some valuable information and insights available on their web site. Make note that in the fine print the owners of this service admit that they "may" market some credit related offers to you in the future. However, they promise not to sell your information and they also provide an email address to which you can send an opt-out request so that you do not receive marketing offers. Give it a try!
Several credit monitoring services are available. Check with your bank. Free Credit Reports 360 is another source and if you would like a free seven day trial, please contact me and I'll help you get set-up.
Get a detailed credit analysis, including all three credit scores, and personalized action plan and consultation for only $99 by contacting me.
Economy & Financial Insights: Significant Declines Continue In Consumer Debt
In the past couple of months, consumer debt has declined $15.5 billion and $21.6 billion respectively. Our collective frugality might be bad news for retail stores and restaurants, but American consumers are spending less and banks have cut down credit card lines too. Despite this, our country's debt bubble continues to balloon. In a futile attempt to stimulate our economy, the government is borrowing money faster than the printing machines can churn out the greenbacks. At some point down the road taxpayers will feel the punishment of these government actions (higher taxes). The Lesson here is that the more we can get our personal finances in order now, the better we will be able to absorb the tax increases and benefit cuts that will come later.
Question of the Month: The Lending Environment Seems To Be Getting Worse. Do You Agree?
Despite government efforts to make banks flush with cash to lend, the underwriting standards remain very tight. Loan applications that look good on paper are still slow to navigate their way to the closing table. Lenders are increasing down payment requirements on certain types of property (example: condos). Intense scrutiny of income, employment and appraisals makes it challenging for a lot of people to get a loan - and the low consumer confidence in our country keeps some people from considering the pursuit of a mortgage. Even private lenders, (yes, the Tony Soprano types) are very tight with their money despite being able to charge very expensive rates and fees to compensate for their risk. It is not all bad news however. Certain families have been able to take advantage of deeply discounted homes to become first-time homebuyers. These folks did the right thing over the last ten or more years. They saved their money. They established great credit. Their rewards for that discipline are available now.
Giving Back: Supporting Our Communities - Nashville Artists Donating Their Music
Do you like Nashville music? The rich history and tradition of the music industry in Nashville continues today. Music is a powerful medium which inspires, heals, educates and sparks all kinds of emotion and reaction from listeners. Check out over 40 inspirational tunes donated by a growing list of singer-songwriters in the free online jukebox at Michelle's Angels. These artists have written, recorded and/or performed with world class acts including Brooks and Dunn, Randy Travis and Faith Hill. Enjoy.
Need volunteers? Do you have a fundraising event upcoming? Do you have a personal web site where you are raising donations for your cause? Submit the information to randy@mortgagebyrandy.com by the 5th day of each month and we will do our best to include your information in the next issue.
Have a safe Halloween. Not my favorite holiday but at least there will be extra chocolate in the house. Off to New York City the week of November 2 for a tradeshow so all you tri-staters can drop me a line if you want to meet up.
Randy
______________________________________________________________________________________________________
Mortgage by Randy newsletter, Copyright 2009 Randy Mitchelson. All Rights Reserved.
Randy Mitchelson is a licensed mortgage professional. All material presented herein is believed to be reliable but we cannot attest to its accuracy. All material represents the opinions of Randy Mitchelson. Recommendations may change and readers are urged to check with their financial advisors before making any decisions. Opinions expressed in these reports may change without prior notice. Mitchelson can be reached at 239-851-6738.
____________________________________________________________________________________
You have permission to publish this article electronically or in print as long as the following is included:
Randy Mitchelson, of Estero, Florida, is a business professional, entrepreneur and author with over 15 years experience in financial services. Mitchelson has served in leadership roles for Global & Fortune 500 firms like Bank of America, KeyBank and CIBC.
As a member of National Association of Mortgage Brokers, Randy has earned the Lending Integrity Seal of Approval. He educates both individuals and groups about credit scoring by conducting personalized credit report reviews, action plans and one on one consultations. He is author of the free monthly newsletter, Mortgage by Randy as well as the Daily Dollar newsletter. A licensed mortgage professional, Mitchelson also founded Trinity Home Financing, LLC.
He is owner of Estero, Florida based National Web Leads, LLC, an internet lead generation service matching consumers with lenders for auto, cash advance and other loan products. Through its network of partners, National Web Leads delivers innovative Web 2.0 software solutions such as lead generation platforms and real time desktop widget and mobile reporting tools for lenders and internet marketers.
Mitchelson earned his BS and MBA at Rensselaer Polytechnic Institute in Troy, NY. He is a founding member and Finance Chairman of the Southwest Florida Regional Technology Partnership Inc. and Vice President for the Michelle's Angels Foundation Inc. He is married to Susan, a Pharmacy Supervisor in the Lee Memorial Health System in Fort Myers, Florida.
Comments(2)