Queercents

This is a guest post from Jeff Hammerberg, the founder of GayRealEstate.com, the largest company in the nation representing the rights of queer home buyers and sellers. These are his words…

For months, real estate insiders have heard rumors that the nations biggest sources of residential loans, Fannie Mae and Freddie Mac, would soon be able to trade in the rarified market for so-called “jumbo” loans. Now the long anticipated wait is finally over, and the rumors have become a welcome and explosively lucrative opportunity. Not only are homes in the upper price range more affordable and much easier to finance than they have ever been, but the available inventory is extraordinarily and tantilizingly diverse.

Fannie Mae and Freddie Mac are federal national mortgage agencies. The twin quasi-governmental loan organizations report directly to Congress and are charged with the responsibility of maintaining smooth functioning and adequately financed mortgage markets. Their primary purpose is to ensure that Americans can always find affordable loans to help them purchase their share of the American Dream. But until March of 2008, the agencies were only permitted to underwrite and insure conventional loans, or those that did not exceed $417,000. Read the rest of this entry »

“Remember that credit is money.” – Benjamin Franklin

As many readers know, I’m a proponent of keeping an untapped home equity line of credit (HELOC) at my disposal for major emergencies. This isn’t my emergency fund. It’s what I call my catastrophe fund.

I’ve always believed that keeping a HELOC readily available is the best insurance policy and the back-up plan for if / when the emergency fund runs empty. Think about it… being able to tap this money could buy us time in the event of job loss or illness. And time is money.

When we bought our home three years ago, we put $300,000 down on the $1,100,000 purchase price. This was well over 25 percent of its value and considered reasonable in the era of zero-down loans. This amount gave us a nice chunk of equity in our house. I actually wanted to put more down, but our mortgage broker suggested otherwise. Her advice was that we could be doing smarter things with this money… as in buying additional assets (cash positive rental properties, etc.) or other long term investments. Read the rest of this entry »

If you are behind with your mortgage payment, don’t dodge that call from you lender. They may have a plan to help put you back on track with a loan modification agreement or a brand new loan with a lower interest rate.

Banks and lenders are forming special in-house team to help customers manage their way through difficult times with adjusting interest rates and other problems related to the credit crunch.

Newspapers, radio, and television are blasting us with statistics about the mortgage crisis. The recent news about the government bail out of Beares & Stern Investment Bank hasn’t help the feeling of alarm creeping into our daily lives.

Banks are forming in-house alliances comprised of collections, foreclosure, and production. The results have been impressive. Read the rest of this entry »

This is a guest post from Jeff Hammerberg, the founder of GayRealEstate.com, the largest company in the nation representing the rights of queer home buyers and sellers. These are his words…

Home Warranties: A potential benefit for both buyers and sellers alike.

The market for homes across the USA has never been more challenging for homeowners trying to sell, nor more mind-boggling for buyers shopping among the historically overwhelming inventory of discounted listings. At the same time, mortgage lenders are more stringent than ever due to painful losses due to delinquencies and foreclosures, so it is important to write purchase offers on houses that can hold up to mortgage company and appraiser scrutiny. But beyond the initial sale of a home, legitimate buyer concerns arise regarding the condition of the home - and whether it will continue to provide a problem-free experience after the keys change hands.

One resource to add to your credibility toolbox is a home warranty. While these insurance policies are often overlooked or underrated, they can easily pay for themselves by boosting confidence, ensuring quality, and calming the emotions of nervous and cost-conscious buyers. Read the rest of this entry »

In 2002 it was reported that more people filed bankruptcy than graduated from all universities in the United States.

Something’s gotta give.

Recession.  Slow Down.  All the politicians talk about is what scares the most people.  All of the rhetoric, bickering, back biting, and posturing by all of the politicians in the U.S. does nothing for an individual locked in a struggle to survive and provide for their loved ones.

Some people have to just let the world keep spinning on its axis while they choose between food and medicine, clothing or heat, a roof over their head or pay their taxes, etc. Read the rest of this entry »

This is a guest post from Jeff Hammerberg, the founder of GayRealEstate.com, the largest company in the nation representing the rights of queer home buyers and sellers. These are his words…

Plain Talk about Fancy Mortgages: Stick with old-fashioned 30-year fixed

The word “candidate” derives from the word “candid”, and politicians running for office this year have learned that voters prefer frank talk, not a sales pitch. The same is true for homeowners shopping for a mortgage. As we prepare for springtime - which is historically the best time to buy a home - it is appropriate to talk about ways to weed out the hype about exotic residential mortgages in favor of old-fashioned fixed rate loans.

The most recent bull market in real estate was artificially inflated by high-risk loans that encouraged consumers to leverage themselves to the max. The old fashioned and reliable 30-year fixed rate mortgage - which helped to steadily grow this nation’s housing market for many decades - was upstaged by sexier, trendier, more exotic residential mortgages. Too many borrowers got in over their heads and are now paying a painful price, and the current mortgage crisis has left consumers shell-shocked and wary. Read the rest of this entry »

I hear it every day. “What’s your interest rate?”

When I hear that question, I flash to an image of a predatory lender, grinning wildly into his phone and purring, “what do you want it to be?”

The sub-prime infection alleged to have collapse our housing industry doesn’t seem to have been a sufficient enough reason for some homeowners to learn the basics of home financing.

Therefore, expect history to repeat itself, one uninformed homeowner at a time, as they dial lenders and ask, “What’s your interest rate.”

It reminds me of my Grandfather educating me about the difference between ignorant and stupid. “Ignorance,” he said, “can be fixed. Stupidity is a birth defect.” Read the rest of this entry »

“It is only the poor who pay cash, and that not from virtue, but because they are refused credit.” – Anatole France

I’ve always kept a home equity line of credit (HELOC) on our house in Newport. Jeanine and I never access it. It’s there for catastrophic reasons (the HELOC would buy us more time to weather a major financial emergency). Over thirty percent of our home’s value is buffered in equity and the HELOC gives us access to about half of this value if we ever need it. Our first mortgage on the property is a 7 year fixed interest only. I’ve never stayed in a house longer than 3 years so despite what people think of ARM products, they’re a great alternative if used responsibly. It drives down our monthly payment and the mortgage interest deduction at tax time is significant.

I’ve used this same strategy on my rental properties, keeping equity lines open but paid off. However, with these properties the first mortgages are of the 30 year fixed variety. I’m paying down principal every month. I used one equity line this summer to do some improvements and then to carry the mortgage while I was trying to get it re-rented. It is now paid off again and all three properties are currently leased.

I give this background to demonstrate that I’ve been a prudent borrower and resourceful real estate investor. So it came as a surprise this week when I got a letter from Countrywide about the HELOC on one of my properties in Phoenix indicating this: Read the rest of this entry »