Video of the Day - Why you need to Interview Your Home Improvement Specialist

Hey Folks!

Well here in Central Indiana March, is sure going out like a lion. While temperatures have gone up it is going to be plenty wet.

Now as we go into April many of us will start our home improvement projects we planned all winter. Please enjoy this video. It may point out a few folks that you may not want to hire.

If you find yourself short of funds for you project, refinancing you mortgage or getting a second mortgage or HELOC may be the answer. Please let me know if you have any questions.

Thanks and Enjoy!

Tony Grego - Indiana Mortgage Company 

 

 

 

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Video of the Day - Google Street View

Welcome to Terrific Thursday!

Just a couple days left in March. Before I get to today's video I want to remind everyone to get your purchase and refinance mortgage contracts into to your favorite mortgage broker (if you don't have one, you always have me) before Monday. Most investors will not do FHA business under a 580 mid credit score starting Tuesday (email me for details).

Now for the show. This will be new for some folks and old hat for others (hope a refresher) but our little search engine Google has launched another really cool service called "Street View." One step better than Google Earth this new tool does what it says, Provides a street view of your address. Now not all addresses are available it is a cool feature.

Clients are surprised when I talk to them the first time. I will pop in their address and ask specific questions about their home. While it can be a little freaky it does help.

Imagine you get a call for a listing. How better can your relationship get when you talking to the client about the house even before seeing it or having a client look at different views from just about anywhere? Or just have a little fun looking up places you used to live?

Enjoy, have fun, and if you have questions about the new minimum credit scores give me a call or email

 

Tony Grego - Indiana Mortgage Company

 

 

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Video of the Day - Abbott and Costello Explain APR?

Understanding and explaining APR vs Rate is a challenge even for some experienced mortgage loan offices. Who could blame them. With all of the terms, costs, and fees it can get rather confusing.

I have seem some mortgage broker web sites do a great job at defining and others remind me of Abbott and division. Here you go:

 

 

In the end it is not that hard. Do you have a GFE and can't understand it? Drop me a email or give me a call and I will be more than happy to explain it.

Have a great day!

Tony Grego - Indiana Mortgage Company

 

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The Internet Has No Closing Costs?

So we spend some time together. I get to know about you and your financial goals for your home and your family. I go to work to find a great mortgage solution for these goals. Meet up with you and present everything in black and white with closing cost guarantees. Then..........

Whoa you say! I saw on TV a ad for no closing cost and your charging me $$$!

So what do I do now? I learned a long time ago that it is much easier to write' em vs fight' em. UH?

Again I am going to present to all of my Indiana clients the best mortgage program for their needs. Now while we may get a little side tracked on little stuff like closing cost I am not going to let this stand in the way of getting you a great deal so I write' em. Another thing I learned is to "seek to understand." So first I will agree with the client. It goes something like this:

"You know what, your right!  I have seen the same ads. In fact it sounded so good I had to check them out. My client, here is what I have found. For the most part two companies are advertising these programs, Bank of America and Countrywide. (In fact, Bank of America is in the process of buying Countrywide). So I went to their website's and this is what I have found:

Bank of America - Skip the Fees with No Fee Mortgage PLUS. Prequalify Online Today. 

Wow! Sounds great. I am now thinking that I need to go work for them but before I submitted my application I saw one of those funny little asterisks things* Hum, I said. Maybe I better check this out. Here is what I found

The following is a summary of the Terms and Conditions. A complete copy will be provided to you prior to closing.

1. No Fee Mortgage PLUS Terms & Conditions

The following is a summary of the Terms and Conditions. A complete copy will be provided to you prior to closing.

No Closing Fees

For customers who qualify, Bank of America will waive or pay all fees for services or products required by Bank of America in order to grant credit to the customer for the purchase of a primary residence. Fees do not include (and the Bank will not pay for): (1) taxes (including, but not limited to property taxes, recording taxes, document stamp taxes, intangible taxes or other similar taxes); (2) interest, including but not limited to prepaid interest or discount points; (3) fees related to owning the home and not directly related to the granting of credit, including but not limited to property insurance (e.g., flood insurance and hazard insurance), homeowner's association fees, special assessments and other similar fees; or (4) fees for products or services voluntarily chosen by the customer. Closing fees and closing costs differ. This offer also does not address any fees you may incur after the closing of the loan, such as late-payment fees, mortgage release fees or other fees associated with the servicing of the loan. This offer does not apply to any traditional fees paid by the seller. This offer is available on applications for certain first mortgages from individuals to Bank of America taken after April 21, 2007, to purchase a 1-4 unit owner-occupied family residence or second home. You must be an existing Bank of America customer. This offer is available only to the real property securing the mortgage. Offer not available through independent mortgage brokers approved to sell Bank of America Mortgage products. Offer is non-transferable and subject to change without notice. Only one application per household. Some restrictions may apply. Credit and collateral are subject to approval. Terms and conditions apply.

Close-On-Time Service Guarantee

To qualify for the Close-On-Time Service Guarantee, you will need to provide us with all the documentation required by Bank of America in the time frames established by Bank of America. You must lock your rate seven calendar days before the scheduled closing date. There can be no significant changes in your loan after your initial application. Bank of America will not be responsible for delays caused by you or any third parties that you select. Eligible claims are for loans that do not close by your requested closing date or within 25 calendar days from the day of your completed application, including property address if submitting under the BuyerReady® loan option, is submitted. The latter of the two dates will be used to determine the eligibility of the claim. You will need to call 800.497.0072 within 30 calendar days of closing on your loan to submit a claim under this guarantee. The equivalent of your first month's mortgage payment is principal and interest only. Any escrows such as taxes and insurance are not included. Other restrictions may apply. This offer can be withdrawn for new applications at any time. Your mortgage application must be accepted by your Bank of America loan officer while this offer is in effect.

Best Value Guarantee

In order to qualify for the Best Value Guarantee, you must receive full credit approval for the first lien purchase money mortgage with Bank of America. To redeem the $250, you must close your purchase mortgage with another lender, then call 800.870.3206 where you will be prompted to complete a brief survey. You'll be required to fax a copy of your HUD-1 settlement statement from your closing. Your loan with the other lender must be secured by the same property as the property you identified in your Bank of America application. You must close on your purchase loan within 60 calendar days after Bank of America sent you notice of the approval of your Bank of America mortgage. You will receive your $250 check via U.S. mail within 30 calendar days of our receipt of your HUD statement. We may report to the IRS the value of any premium, and any applicable taxes are the responsibility of the recipient.

2. Savings calculations based on 2007 Bankrate Study.

3. Assumes 1% origination fee. All fees are not charged by all lenders.

4. Disclosed savings are based on a loan amount of $200,000 with a 30-year fixed term, a 6.856% APR, 0.311 points, 360 monthly payments of $1,297.20, principal and interest only, 120 monthly payments of $130.00 mortgage insurance in years 1-10 and $33.33 mortgage insurance payments until LTV drops below 78% at 30% coverage, and a 95% LTV (rate as of 4/13/2007). Your benefits may differ depending upon loan amount and term and selections under the No Fee Mortgage PLUS program.

5. HUD Numbers and titles are listed as used by Bank of America. Number may vary by lender. Fees paid by Bank of America are outlined by title description and not title number.

Important note about this calculator:
Savings calculations based on 2007 Bankrate Study. Assumes 1% origination fee. All fees are not charged by all lenders.

Bank of America, N.A. Member FDIC. Equal Housing Lender © 2007 Bank of America Corporation. All rights reserved.

That is a bunch of fine print and still do not know what it takes to qualify? So maybe that is not the right choice. I guess Countrywide will have the better deal. Lets see:

Countrywide -

No Closing Cost⁺⁺ Home Refinance Loan.
Call Today to Combine Mortgage and Debt.

FED CUTS RATE!
CALL OUR SPECIAL RATE HOTLINE:

1-800-291-XXXX (if you need you can look up on your own. I can't let you walk in to this insane program)

On the surface it sounds good, right? Sure No Closing Cost! What about those little ++ hanging around. Yep, more fine print. Here it is:

^ Countrywide Home Loans is a division of Countrywide Bank, FSB -- a member of the Countrywide® family: America's #1 home loan lender (as ranked for 2007 by Inside Mortgage Finance, Jan. 25, 2008, ©2008)

* As announced on March 18, 2008 by the Federal Reserve Board, FOMC meeting minutes, decrease of 0.75% to the Federal Funds Rate.

++ Affects pricing. With the No Closing Cost Option, borrowers finance the closing costs instead of paying for them at closing. Borrowers who pay closing costs at closing may qualify for a lower interest rate.  Some upfront fees (ex. credit report and appraisal) may apply and may be credited at closing. Call for details.

Not only is Countrywide charging you closing costs they are slapping you in the face and telling in the ad that it is no closing cost.

Folks, give your mortgage broker a break. If you have found a good one, congratulations. If not, call me. I will get you a mortgage for your needs and not my needs (read that again, it is the important one). While we all have to make money. That's how I provide for my family just in the same way you provide for your family we can do it with the best intentions of the client.

Thanks for reading my post and please comment. This issue seems to come up with most (and I use the term) customers. Heck I am also a customer with a mortgage and if a no closing cost was the right deal I would do it. It is not the right deal for most. As you see with "non-edited disclosures" when you get down to it even the "No-Cost" deals have cost.

At the end of the day it is advertising. Just like the car business, you advertise the "loss leader" that almost no one qualifies to get and sell what you have when they call or visit. No saying that I agree. Just saying what it is.

 

Let me know how I can help you get the best mortgage for your needs.

 

Respectfully

Tony Grego - Indiana Mortgage Company

 

 

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Video of the Day - Coming soon to a store near you - Rock'em Sock'em Robots

Good day and welcome to Terrific Tuesday! Remember back in the day (now I am aging myself) when watching TV on the 4 channels we had, ABC, NBC, CBS, Public Broadcast we would have some interesting commercials? Saturday morning was always fun when they featured many of the toys and games we wanted. So just sit back, turn up the volume a little bit and remember those days while watching this:

 

 

Have a Great Day and for folks that sell, Happy Selling!

Tony Grego - Indiana Mortgage Company

 

Technorati Tags: video of the day,commericial,toys,indiana

Home-buying Mistakes to watch

Spring is here and the home buying market is gearing up. Now if your a first time home buyer or an experience veteran you will want to read this post. I listed home-buying mistakes that most people even the most seasoned home buyer might commit.

Find a home without pre-qualification and pre-approval:

There are buyers who start shopping for a home without getting pre-qualified and pre-approved. If you get pre-qualified with a broker or lender before seeking a home, you can convince the seller of your ability of getting a mortgage loan. A letter from the lender or broker to the seller can further improve your chances of getting the home of your choice. Just because you qualified for a mortgage just a few months ago, things have changed. You need to be sure you will still qualify.

Buying a home without home inspection:

Home inspection helps to find out whether there is scope for repair in the property. The reports of such inspection help you negotiate with the seller to reduce costs. I often hear that "I can't afford to get an inspection." If that is the case you should not be buying a home in the first place.

Signing documents without checking:

Buyers often sign documents without reading them. These documents are standard forms and are available for review. But you may not be able to read them all at closing. So you should go through them prior to closing and avoid difficult situations in mortgage and home buying transactions.

Not getting a Good Faith Estimate:

You should receive the GFE within 3 business days of applying for the loan. This should list all costs and fees associated with your mortgage. So, if you aren't getting one from the broker, request a copy of it. Make sure that you get a cost guarantee. While some third party costs may vary banker/broker fees should not.

The rate-lock is not made in writing:

Get a written agreement of the rate-lock offered by your broker. This agreement includes the interest rate, period of rate-lock and other details of the loan program.

Lock in at low interest rates:

Majority of buyers wait for market rates to decrease before going for a rate lock. But the reverse may happen. The interest rates may increase and you may have to pay more. Make sure that your mortgage broker has all of your contact numbers. We need to be able to get hold of you when markets change. This will help you to lock in at a lower rate.

Terminating the lease on the date of closing:

You may ask your landlord to terminate the lease just on the day of closing. But this can lead you into trouble if the closing is delayed by a week or so. The lease should be terminated a week after the closing so that you can avoid further problems.

Shopping for home insurance just before closing:

There are buyers who look out for homeowner insurance policies just before the closing. But they fail to shop around in the last minute. It is better to search for the best policy as soon as a lender approves your loan.

Applying Obtaining new credit after making initial application:

Do not make any additional credit inquiries from the time of your mortgage application until closing. The bank may (and often does) re-pull credit at closing to be sure that you have not secured any new debt.

These along with many other things is why it is important to deal with a professional mortgage company. You choice in Indiana is Sagamore Home Mortgage. I am here to help folks just like yourself with all of your mortgage needs. Please let me know what questions you have.

Tony Grego
Indiana Mortgage Company

 

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Video of the Day - The Last Lecture

Please enjoy this video. While a little longer than most I post (it is 10 minutes),  I promise it is worth it.

This is a video that everyone should see. For those of you who aren't familiar with who Dr. Randy Pausch is, the short story goes like this:

He is a happily married man with three very young children. He spent years working for Disney as an Imagineer who helped them develop some of their theme park attractions. He then went on to teach at Carnegie-Mellon University in Pennsylvania where he still is to this day.

Abruptly, his life took a turn for the worse when he got cancer and fought it off after years of treatment. The cancer has since returned and has near-totally corrupted several vital organs leaving him with mere months to live.

 

Thanks
Tony Grego

 

 

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Video of the Day - Worlds Smallest Car

Parking will no longer be a problem with this baby! (Ugh! I talking like a car guy again. I need to go check with I am wearing). Anyway, it is Good Friday and I hope it is great for everyone.

So I hope your have a short work day (if your working at all). Take a minute and check out this video. If your in the market I'm sure that I have a few friends that can make you a deal.

From my family to yours, have a safe and Happy Easter!

 

 

 

 

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Video of the Day - Happy Easter!

What a week it has been? Up's and Down's with mortgage rates. Crazy weather here in the Indiana. First day of Spring and now this Sunday is Easter. I know that many of us is going to take a well deserved break. Many lenders and local companies will be closed tomorrow so I just wanted to spread a little early Easter cheer!

 

 

Happy Easter to all from my family to yours!

 

 

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Video of The Day - What I Never Learned In 12-Years at Catholic School

Growing up in a small town I attended to a catholic school (what a surprise, growing up near Philadelphia and New York with a Italian heritage). Always wearing those stylish uniforms (first 8 years that good-looking yellow and brown combination) I went from a clip tie to my high school years learning to make a Full Windsor Knot.

Now the one thing I did not learn in school is something I just learned by watching youtube. Yes, How to tie a bow tie. So whether you're a distinguished professor type, a fledgling politician, or a James Bond wanna-be, knowing how to tie a bow tie comes with the territory. Here is how to do it:

 

 

 

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Sex Offenders in Your Neighborhood? MUST READ POST

After reading this post please post comments. I feel that this is the most important post I have ever created. While it is great to inform Indiana homeowners and real estate agents about the mortgage market, nothing compares with the information in this post.

Please go to and bookmark this website -

www.familywatchdog.us

Due to the importance I did not add a hyper link. Please note it is a .us vs a .com

Now, What is Family Watchdog?

Family Watchdog allows you to see where registered sexual offenders live and work around you.

Is there a cost to use Family Watchdog?

There is no fee associated with looking up offenders and viewing maps.

What else does Family Watchdog do?

Family Watchdog can proactively notify you when a registered sexual predator moves within up to five miles of three different addresses that you care about.

What three addresses can I choose?

You may use any address that you want. Home. School. Church. Playground. Day care center. A parent's house. Whatever address is important to you.

I live in an upscale neighborhood. Why do I need this service?

Sexual predators have no physical borders, and are not confined to any given socio-economic group.

Where do they get data?

We receive our data from multiple sources. We combine and cross reference the data from all four sources in order to provide the most possible coverage and protection.

Are there registered sexual offenders that are not in your database?

Unfortunately, yes. Our service relies on publicly available data. If an offender moves and does not report to the county sheriff in which they reside, we will not know that they have moved.

Again, please go to and bookmark this website -

www.familywatchdog.us

 

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Don't Take No For An Answer

Good Wednesday Folks!

Hey it is hump day so it must be time to hump for some business. Now this post is for professionals and consumers alike.

Just a couple of years ago when the mortgage market was booming Indiana Mortgage Brokers like me had plenty of sources to place your mortgage. If you were turned down with one mortgage company, no problem. We would just find another. Then about a year and half ago some of these mortgage companies started to close down. Then more and more. In fact, 236 to date; to get a complete list just go to Mortgage Implode. Now that your back what did you think? Pretty scary site? Do yourself a favor, don't be so afraid.

While sad, the bulk of these mortgage companies did it to them self. Offering low credit score borrowers big loan amounts with adjustable rate mortgages just to default down the road. Not sure but it looks like these companies game plan was to foreclose on the mortgage, sell it and make even more money. While this is might have worked for a while it is not the case today.

So what am I posting about? Well, many of us are now conditioned that when we send a loan to a conforming lender or a Indiana consumer applies to the big tree, country, city, or bank (If you do not get all the references email me. I do not feel comfortable posting names) and get turned down. They then go to their local bank and the same thing happens so many feel that they have no where else to go.

The truth is some folks don't qualify but many homeowners and potential homeowners have options. You need to remember that the "big boys" and local banks have taken the biggest hits. So to recoup losses they have new lending guidelines that are very narrow. Now I can not find the number of active mortgage companies (if anyone has it, please comment) but in Indiana we have dozens of mortgage bankers that approve loans that others don't everyday. Now again, not all are approved but many are approved that have been tuned down elsewhere.

When apply for a mortgage the lender needs to review credit, equity, purpose, employment, assets, etc. This is done with the application, credit report, appraisal, and supporting documents. But what happens when not reviewed by a professional? Mistakes can and do happen. You are dealing with the most expensive purchase most will ever buy. Don't lose it just because your application was not completed right. When you deal with larger companies most times you are dealing with someone that handles up to 20 leads a day. Ask yourself, how much time can they commit to YOUR SITUATION?

Every week I am closing loans (along with other professional mortgage brokers) that have been turned down somewhere else. In fact, even after a great review of the mortgage, a pre-qual from the AE, and a good appraisal the mortgage may be turned down only to be approved by another one of our lending partners. This is not uncommon. Remember that when it goes into a underwriter it is a "human" decision vs. automatic underwriting.

While some mortgages are approved with automatic underwriting this accounts for only about 15% of approvals. Another 15% will not be able to get a mortgage right now due to a number of reasons. This leaves about 70% of consumers that want to purchase or refinance a home that will need the help of a professional mortgage broker.

So if your a real estate professional helping your clients to get approved you need to partner with a professional mortgage broker that can give you options. Consumers, if you have been turned down try the services of a professional mortgage broker. Folks, just like myself, will get you approved or give you a game plan to get you approved in the future. So:

DON'T TAKE NO FOR AN ANSWER! 

If your in Indiana I would like the opportunity to apply to become your professional mortgage broker. I will work hard for you and I will get the job done!

Respectfully,

Tony Grego - Indiana Mortgage Company

 

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Tips for 1st Time Homebuyers

While I am not going to get into rates and terms. Plenty is already posted about that I just hope everyone had as good as of day as I did talking to potential first time homebuyers. Not sure why, maybe it was the time change but I spoke with three different folks that have decided to take the leap and buy a home. I listed a few items you can share (and I hope get you a sale) with new clients with regards to mortgage questions.

1. Figure out what you can afford. There are plenty of mortgage calculators out there that are easy to use. Simply input a few variables such as mortgage loan amount, the term, the interest rate, etc., and you’ll come up with a monthly payment. You need to be sure everyone is on the same page and use one. Just don't  take the sales price, multiply by 6% and divide by 360. Don't laugh, it happens.

2. Part of figuring out the monthly payment means knowing the PITI. What’s that you ask? Well it is not bread. PITI, or Principal, Interest, Taxes, and Insurance is what will make up that monthly payment of yours. Remember we are dealing with folks that only know a rent payment. We as professionals need to teach.

3. Say you decide to take that step and buy that home. You’ll want to figure out how much you’re going to be paying in closing costs, which include origination fees, taxes, prepaid things like the homeowner’s insurance policy, perhaps HOA (Homeowner’s Association Fees), title and settlement fees, and so on. Now many times you might be able to work with the seller to help pay some of these fees. FHA does allow seller concessions to help with this and up to 3% for a down payment.

4. How much of your monthly expense should a home be? Well, as a general rule, 28% of gross income (this is the number before taxes) is what Fannie Mae recommends you set aside for housing costs. Anything above and beyond that and you risk sacrificing some things you might not want to sacrifice.

5. Think about it. Buying a home is great, but expenses can and do mount up. Once you buy a home, YOU are the person that is responsible for maintaining it. The days of calling landlords to fix things for you is over. On the positive side–the place is yours! You have the freedom and warm feeling of owning your own home–or spray painting the living room at will, if your heart so desires.

Good luck.

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Lock'em if you got'em

Friday was a great day for folks looking to lock in mortgage interest rates, We had a big drop and was able to help plenty of Indiana homeowners get a great interest rate with their Indiana Mortgage.

Tony Grego here at Sagamore Home Mortgage! While mortgage interest rates have risen over the last 10 days Friday did help. Now looking at the Japanese stock market and the further loss of the US Dollar we are in for a "rocky" day with the stock market. I am recommending all of my Indiana clients to lock your mortgage rate today. Looking at this weeks calendar of financial reports does not indicate that anything will help lower your mortgage interest rate.

I expect to see a dip in mortgage interest rates when first released this morning then the Feds making the "big surprise announcement" of lower short-term rates 1/2 point. This will help the market and cause the bond market to dip and raise your mortgage interest rate.

Tune into my Mortgage Broker Channel to see live updates throughout the day.

Tony Grego - Indiana Mortgage Company

Quote of the Day:
Champions aren't made in the gyms. Champions are made from something they have deep inside of them - a desire, a dream, a vision. They have last-minute stamina, they have to be a little faster, they have to have the skill, and the will. But the will must
--Muhammad Ali

Ready for the Next Hurdle When Refinancing Your Mortgage? Second Liens No Longer Will Be Subordinated.

Have you ever heard that "March comes in like a lamb and goes out as a lion?" Well lets take a look at this little lamb called a mortgage.

Along with a new month we have new policies and news that directly affects if the average consumer will qualify for a mortgage. Lets see, we have:

• Mortgage Insurance - If your credit score is below 680 the price just went up and your number of options have gone down (I am not going to bore you with the details. Dozens of posts have done a great job of providing details. Here is a good one from Marlo Newman.
  
• Brokers/Bankers will no longer be able to order an appraisal - Shonda Blakely posted a great thread about New York Attorney General Andrew Cuomo. If he gets his way the only one that will order an appraisal after September will be Freddie Mac and Fannie Mae. Didn't these guys report a $6B 4th qtr, loss? Just to give you an idea of what that looks like = $6,000,000,000,00. Heck! that is only around $67,000,000.00 a day.
  Sounds like they need a couple of winning Power Ball Tickets. This week is only $153,00,000 but I guess every little bit helps.
  
  Ready for the Hat Trick?
  
• Lenders will no longer approve requests for subordinations from second-mortgage companies - Kenneth R. Harney from the Washington Post Writers Groups in Sunday's Chicago Times tells the tale of Robert Whittaker from Sykesville, MD. Whittaker contacted Immediate Mortgage Inc of Ljamsville, MD to refinance his interest-only-adjustable rate loan that was scheduled for a big payment reset. Robert is a high credit score client with about $55,000 in equity (after paying off the 1st and 2nd mortgage). Anyone that has done a subordination knows that while they may take a while they are routine. This one sounds like a "no-brainier."
  
  The broker submitted the request to the second lender, National City Corp. on February 1st. February 18, the bank told National City employees in an internal memo that it is no longer approving requests nationwide for subordinations from second-mortgage customers whose first mortgage was with another firm.
  
  The article then goes on to say that the change at National City illustrates how declining market conditions (currently no markets in Indiana have this tag) are affecting borrowers with second liens. Not only are equity lines being frozen or reduced, but issues such as subordination stymie borrowers' attempts to refinance.
  
  Now the article did not point this out but currently when a home goes into foreclosure and it has multiple liens, the sale proceeds pays off the balance on the first mortgage and then subsequent liens. As you can guess, today's market does not have a positive forecast for home appreciation leaving the lenders holding second-mortgages, HELOCS, and third mortgages with nothing to go after. 

Welcome again to March 1, 2008. Sounds like we are going to have a heck of a start. Just hope that this year March comes in like a lion and goes out like a lamb. Remember the reason I will post a thread like this is to help. It is great third party information to share with your clients. Many folks are just waiting. Maybe something like this can get the waiting to stop and the buying to begin. If you have clients in Indiana and need some help with their mortgage. Give me a call or drop a email. I am the real estate agents friend.

Tony Grego - Indiana Mortgage Company

 

Quote of the Day:
You are not what you own.
--Fugazi, American rock band