1. Not knowing your credit score
If you're even toying with the idea of buying a home, you must find out exactly what your FICO score is. If you find it is less than ideal, wage a systematic campaign to raise it. Too many borrowers ignore this step and get surprised when they get interest rate quotes.
Once you've pored over your credit history and corrected any errors, your next step is to pay down revolving debt balances to no more than 30% usage. That will help raise your score significantly.
Why does it matter?
The lower your score, the higher your costs of borrowing. Fannie Mae and Freddie Mac, for example, charge higher up-front fees to borrowers with credit scores below 740.
For a buyer with a credit score between 680 and 700, the fee comes to 1.5% of the mortgage principal. On a $200,000 mortgage, that adds up to $3,000. Someone with a 740 score pays nothing.
Lower-score borrowers also get saddled with higher interest rates, about 0.4 percentage point more for the below 700 borrower. That costs an extra $62 a month -- $744 a year -- on a $200,000, 30-year, fixed rate loan.
Tuesday, April 20, 2010
Friday, April 9, 2010
Denver Leads State in Population Again Yet Again
Denver Leads State In Population Gain Yet Again
Posted by Ken on April 8, 2010
You may have caught this about a week ago when it was announced, but just in case… the US Census Bureau released its last annual July population estimates before the 2010 Census and, once again, Denver led the state in population gain.
From 2006 to 2007, Denver squeaked past Douglas County by a little over 100 people to have the highest numeric population gain in the state for that year, with an increase of about 12,500. Then, from 2007 to 2008, Denver topped second-ranked Arapahoe County by almost 5,000, gaining over 15,500 people that year. The numbers just released for estimated county populations as of July 1, 2009 has Denver gaining over 17,000 for the year, with Adams County in second place at over 11,000. The City and County of Denver’s population has now surpassed the 600,000 mark for the first time ever.
Of course, the point isn’t really the county vs. county aspect of this. At some point in the future, El Paso County (and other counties as well) will pass up Denver County in population given that Denver covers only 155 square miles (a third of which is DIA) and must rely on infill development for growth, while El Paso County, for example, covers 2,130 square miles and is only about 10% urbanized at present. The point is that Denver is growing in a significant way after several decades of decline during the era of peak suburbanization. This tells us we are on the right track. People are voting with their feet (or perhaps, their house keys). Denver does have some undeveloped areas left (e.g. Stapleton, Green Valley Ranch, DIA/Gateway), but clearly the city’s long-term source of population growth is going to occur through infill development and the densification of its Areas of Change (former industrial areas, the greater Downtown area, transit-proximate areas, etc.). This is a good thing. Densification and urban infill is sustainable development at its most simple.
Filed under Economic Growth, Sustainability, Urbanism
Posted by Ken on April 8, 2010
You may have caught this about a week ago when it was announced, but just in case… the US Census Bureau released its last annual July population estimates before the 2010 Census and, once again, Denver led the state in population gain.
From 2006 to 2007, Denver squeaked past Douglas County by a little over 100 people to have the highest numeric population gain in the state for that year, with an increase of about 12,500. Then, from 2007 to 2008, Denver topped second-ranked Arapahoe County by almost 5,000, gaining over 15,500 people that year. The numbers just released for estimated county populations as of July 1, 2009 has Denver gaining over 17,000 for the year, with Adams County in second place at over 11,000. The City and County of Denver’s population has now surpassed the 600,000 mark for the first time ever.
Of course, the point isn’t really the county vs. county aspect of this. At some point in the future, El Paso County (and other counties as well) will pass up Denver County in population given that Denver covers only 155 square miles (a third of which is DIA) and must rely on infill development for growth, while El Paso County, for example, covers 2,130 square miles and is only about 10% urbanized at present. The point is that Denver is growing in a significant way after several decades of decline during the era of peak suburbanization. This tells us we are on the right track. People are voting with their feet (or perhaps, their house keys). Denver does have some undeveloped areas left (e.g. Stapleton, Green Valley Ranch, DIA/Gateway), but clearly the city’s long-term source of population growth is going to occur through infill development and the densification of its Areas of Change (former industrial areas, the greater Downtown area, transit-proximate areas, etc.). This is a good thing. Densification and urban infill is sustainable development at its most simple.
Filed under Economic Growth, Sustainability, Urbanism
Tuesday, April 6, 2010
American say time is right to buy home
poll - Nearly two-thirds of Americans think the time is right to buy a house, with a majority believing prices will be the same or higher over the next year. In a survey conducted by Fannie Mae, 64% said it is a good time to buy. However, most of the 3,451 polled said that it would be tougher for them to get a loan than it was for their parents.
http://www.msnbc.msn.com/id/36192404/ns/business-real_estate/
http://www.msnbc.msn.com/id/36192404/ns/business-real_estate/
Thursday, April 1, 2010
The New Face of House Flipping
Nationally, the number of flipped homes rose 19% to 197,784 in 2009, according to RealtyTrac. Flipping has been encouraged by a FHA one-year rule change, which allows FHA borrowers to buy foreclosed homes from owners who have held title for less than 90 days. Many of the today’s flippers are wealthy foreign investors. In many cases, they bid without ever seeing the properties, relying on photos and descriptions via mobile phone.
http://www.realtor.org/RMODaily.nsf/pages/News2010033106
http://www.realtor.org/RMODaily.nsf/pages/News2010033106
Wednesday, March 24, 2010
Denver Parade of Homes Returns!!
Parade of Homes to return in August with multi-site format - Denver’s “Parade of Homes” will return Aug. 14 to Sept. 6, featuring a multiple-site format for a second year and a wider-than-usual range of home values, the Home Builders Association of Metro Denver said yesterday. “We’re bringing back the favorite elements of the Parade, but we’re adding more homes for visitors to see throughout the metro area and admission to the Parade will be free,” Clarence Hughes, chairman of the Parade of Homes and a Home Builders Association (HBA) board member, said in a statement.
http://www.bizjournals.com/denver/stories/2010/03/22/daily21.html?s=industry&i=resi_real_estate
http://www.bizjournals.com/denver/stories/2010/03/22/daily21.html?s=industry&i=resi_real_estate
Tuesday, March 23, 2010
Benefits of Home Ownership
With the Home Buyer Tax Credits coming to a close and mortgages remaining low, if you've ever thought about owning your own home - NOW IS THE TIME!!!
Call me at (720) 988-5952 to discuss your options and to put you on a path to home ownership.
Need some convincing yet? Take a peak at the following article that discusses the benefits of Home Ownership.
Let me help your dreams become a reality!
http://realtytimes.com/rtpages/20100322_benefits.htm
Call me at (720) 988-5952 to discuss your options and to put you on a path to home ownership.
Need some convincing yet? Take a peak at the following article that discusses the benefits of Home Ownership.
Let me help your dreams become a reality!
http://realtytimes.com/rtpages/20100322_benefits.htm
Monday, March 15, 2010
Weekly Mortgage Newsletter - courtesy of Tami Pratt
Quiet Week for Mortgage Markets
During a very light week for economic news, the economic data and Treasury auctions contained few surprises and produced little reaction in mortgage markets. Mortgage rates ended the week nearly unchanged.
In early 2009, the Fed embarked on a $1.25 trillion mortgage-backed securities (MBS) purchase program to help keep mortgage rates low and stimulate the economy. The amount purchased varied from week to week, reaching a peak of $33.2 billion in the week of March 25, 2009. The Fed has been gradually reducing the size of its purchases at a pace consistent with a March 31 conclusion of the program, and the most recent weekly purchases have been down to around $10 billion.
As the date nears, the big question is what will happen when the MBS purchase program ends. This program is unprecedented, making the outcome difficult to predict, and forecasts vary widely. Estimates for the impact on mortgage rates from the conclusion of the program vary from an increase of one percent to no change. Those who predict higher mortgage rates point to a basic change in the fundamental supply and demand. The added demand from the Fed was widely credited with moving rates lower, and a decrease in demand would typically push rates higher. However, other economists argue that investors respond only to unexpected news. In this view, since the Fed has telegraphed the end of the program for months, there should be little reaction around March 31. The Fed itself has indicated that they expect a modest increase in mortgage rates due to the end of the program.
Also Notable:
Despite major snowstorms in many regions, February Retail Sales increased
The Labor Dept. announced that the number of job openings in January rose 8%
Oil prices rose above $80 per barrel to the highest level since early January
The Fed purchased $10 billion in agency MBS, with about $24 billion more to go
Average 30 yr fixed rate:
Last week: 0.00%
This week: +0.01%
Stocks (weekly):
Dow: 10,600 +100
NASDAQ: 2,350 +50
Week Ahead
The big story next week will be Tuesday's Fed meeting. No change in the fed funds rate is expected, but any surprises in the Fed's statement could produce a large reaction. The most significant economic data next week will be the monthly inflation reports. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products and will come out on Wednesday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Thursday. CPI looks at the price change for those finished goods which are sold to consumers. In addition, Industrial Production, an important indicator of economic activity, will be released on Monday. Housing Starts are scheduled for Tuesday. Import Prices, Leading Indicators, and Philly Fed will round out a busy week.
During a very light week for economic news, the economic data and Treasury auctions contained few surprises and produced little reaction in mortgage markets. Mortgage rates ended the week nearly unchanged.
In early 2009, the Fed embarked on a $1.25 trillion mortgage-backed securities (MBS) purchase program to help keep mortgage rates low and stimulate the economy. The amount purchased varied from week to week, reaching a peak of $33.2 billion in the week of March 25, 2009. The Fed has been gradually reducing the size of its purchases at a pace consistent with a March 31 conclusion of the program, and the most recent weekly purchases have been down to around $10 billion.
As the date nears, the big question is what will happen when the MBS purchase program ends. This program is unprecedented, making the outcome difficult to predict, and forecasts vary widely. Estimates for the impact on mortgage rates from the conclusion of the program vary from an increase of one percent to no change. Those who predict higher mortgage rates point to a basic change in the fundamental supply and demand. The added demand from the Fed was widely credited with moving rates lower, and a decrease in demand would typically push rates higher. However, other economists argue that investors respond only to unexpected news. In this view, since the Fed has telegraphed the end of the program for months, there should be little reaction around March 31. The Fed itself has indicated that they expect a modest increase in mortgage rates due to the end of the program.
Also Notable:
Despite major snowstorms in many regions, February Retail Sales increased
The Labor Dept. announced that the number of job openings in January rose 8%
Oil prices rose above $80 per barrel to the highest level since early January
The Fed purchased $10 billion in agency MBS, with about $24 billion more to go
Average 30 yr fixed rate:
Last week: 0.00%
This week: +0.01%
Stocks (weekly):
Dow: 10,600 +100
NASDAQ: 2,350 +50
Week Ahead
The big story next week will be Tuesday's Fed meeting. No change in the fed funds rate is expected, but any surprises in the Fed's statement could produce a large reaction. The most significant economic data next week will be the monthly inflation reports. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products and will come out on Wednesday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Thursday. CPI looks at the price change for those finished goods which are sold to consumers. In addition, Industrial Production, an important indicator of economic activity, will be released on Monday. Housing Starts are scheduled for Tuesday. Import Prices, Leading Indicators, and Philly Fed will round out a busy week.
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