Real Estate Bounce - as predicted?

As is typical of Real Estate and Mortgage "types" in the Las Vegas market, over the last few years I have had many conversations with colleagues about How, When and Why the Real Estate market will recover. 

Last weekend I took a couple of days to go camp on the California coastline to do some bodyboarding with my two sons and a group of friends.  I sat offshore a bit and waited for the next "Set" to roll in, hoping to be in the right position to have a great ride.  At first it was a guess, but then I got the feel.  I could see a swell on the horizon and then I could feel the water receding to meet it. 

Most of my colleagues guessed that the "recovery" would be flat for years and then take decades to recover.  Many Investors and would be homeowners waited on the sidelines.  This present boom caught all of them off-guard.  I kept saying we would have more a bounce than slow growth, probably a 25%-35% bounce over a short period (like 24-30 months).  I was alone in that prognostication, but the recent boom could go either way.   We will know soon enough who was right. 

But, why did I say that we would bounce of the bottom so far?  Well, the first reason is that rents vs. mortgage payments are far out of equilibrium.  What I mean is that in a normal market, it costs about 10% to 20% more for mortgage payments (to own a home) rather than rent it.  At this point, mortgage payments are 25% less than rent payments on a comparable home.  Additionally, investors can easily earn 10% to 20% Return on Investment based on the current rents and property values.  That is much higher than a stable market which typically earns about 8%. 

With all of this said, I feel confident in my prediction of a large housing market value "bounce." But there are foreseeable risks.  First, mortgage rates are low and could rise, putting downward pressure on home prices.  Additionally, geo-political risks could negatively impact the market. Lastly, we could see a glut of homes onto the market should the law which slowed the foreclosure market be repealed in the next State Legislative session.

For help with Real Estate financing, email brentawood@hotmail.com.  702-629-9555.

Brent Wood

Refinance Options Matrix

FHA Homeowners - You are in Luck !!!

For the past couple of years, FHA mortgage insurance has been rising as rates have come down.  What that means to FHA homeowners is that they can refinance, but their new, higher mortgage insurance rates will eat up the savings.  Well, help is finally here.  FHA homeowners who have had their mortgage for about three years or longer can now refinance to today's great rates (typically 3.25 to 4.0 %) without their mortgage insurance increasing.  Rates subject to change without notice.

Call today to refinance and lower your payment significantly!

Brent A Wood 702-629-9555  brentawood@hotmail.com

HARP 3.0

So far, HARP 2.0 has been a great success, but has been limited to Fannie Mae and Freddie Mac owned mortgages.  Many clients have portfolio, VA and other types of loans that are not included in HARP 2.0, so clients can't take advantage of this great program to save money through a refinance.  HARP 3.0 is rumored to expand the program to include most of these loans. 

TIP - If you want to stay in the loop regardin a possible HARP 3.0 refinance, please email us at brentawood@hotmail.com or kholt@awmlv.com .

HARP 2.0 - Refinances for People paying their mortgage

HARP 2.0 Refinance Program has been out for a few weeks now and it has been very well received by homeowners throughout the country.  This program was created to help homeowners who are paying their mortgage, but did not have sufficient equity to refinance through existing mortgage programs.  Rates from 3.5% up to 5.0% are available for 15, 20, 25 and 30 year mortgages for Primary Residences, 2nd Homes and Investment mortgages that are presently owned by Fannie Mae or Freddie Mac.  Rates are subject to change without notice and not guaranteed.  The shorter the term, the lower the rates.  Credit scores and other factors can impact the rate a client receives, as well. 

Tip - many mortgage bankers and brokers offer these mortgages, but many do not know how to close them in a reasonable time and even fewer offer low rates and fees. 

We would love to provide you a quote with excellent rates, low fees and the time it will take to close.

Brent Wood 702-629-9555 brentawood@hotmail.com 
Karl Holt  702-629-0716  kholt@awmlv.com

Ten Reasons to Think the Economy is Improving...

Ten Reasons to Think the Economy is Improving

1) Improving Orders for High Priced Equipment
2) R.V. Sales have bounced back, strongly predictive and correlative of economic strength
3) Advertising Sales are Up
4) Corporate Profits are at Record Levels
5) Men's underwear sales are up, strongly predictive and correlative of economic strength
6) More companies plan hiring
7) Factory Production and Auto Industry improvements
8) Improved Retail Sales
9) Housing Price Stabilization and even improvement
10) Unemployment declines, even if slowly

Mortgage Myth #4 Things to help your credit

Mortgage Myth 4A

Payoff your credit cards by consolidating in to one card.  This is a bad idea.  It is better for your credit to have multiple cards with low balance/limit ratios, not one maxed out credit card.

Mortgage Myth 4B

Payoff and Closing my credit cards is great for my credit score.  Actually, paying them off is good, closing them is not.  Four zero balance cards is actually good, but make a small purchase on each every couple of months and pay it off immediately will be best for your credit.   It is good to have long term credit, do not open, payoff, then close over and over again.  This doesn't help.

Mortgage Myth 4C

Having your parents add you as an authorized user helps build (or rebuild) your credit.  This was the case in the distant past, but now this does nothing for your credit or re-establishment of credit.


There are lots of other mortgage and credit myths out there, but experienced and knowledgeable mortgage agents are able to read your credit report and qualify you on the spot for a favorable mortgage and give you tips on how to make your credit better for the future. 

Call me if you have any questions.

Brent A. Wood
License Mortgage Agent
NMLS#327581
Direct 702-629-9555
brentawood@hotmail.com
All Western Mortgage
770 Coronado Center Drive Suite 160
Henderson, NV  89052
NMLS #14210

Rich People get Richer, But SMART, rich people get FILTHY rich

Why do investors finance rental properties instead of paying cash?   The simple answer is that LEVERAGE increases ROI (return on investment).  Let’s start with a simple example:

Mrs. Johnson buys one rental property with $100,000 Cash.

Net rent after taxes, maintenance/vacancy set aside, taxes/insurance, etc. is $500/month

ROI is 6% /year not counting any tax benefits and property appreciation.

Mrs. Johnson buys five rental properties with $100,000 down and finances $80,000 each.

Her payment is $400 per month, so her net rent is approximately $100/month each.

ROI is 6%/ year not counting any tax benefits and property appreciation.

But, now let’s factor annual appreciation at 3% and annual rental increases of 3%.

One Property (Cash)

Net Rent without Rental Increases = $60,000

3% appreciation on one property of $100,000 for ten years = $34,391

3% rent increase on one property = $17,566

Total ROI $111,957 = 11.2% /year

Five Properties (Financed)

Net Rent without Rental Increases = $60,000

3% appreciation on five properties of $500,000 for ten years = $152,386

3% rent increase on five properties = 17,566

Total ROI $229,952 = 23%/ year

This is why rich people get richer and smart rich people get filthy rich. 

HARP 2.0 - lower your rate/payment even if you are underwater

Harp 2.0 is HERE.  If you have been making your mortgage payments, but your property value is lower than your mortgage balance, help is here.  Under the new Home Affordability Refinance Program, endorsed by the federal government, homeowners can now take full advantage of the historically low rates starting in the low 3 percent range for shorter terms and mid to high 3 percent range for 30 year fixed.   Many borrowers can save thousands each year on their payment or pay about the same amount and cut many years or even decades off their repayment period.  Call today for more details.  Our company is a Mortgage Banker with very low rates on the HARP 2.0 product and we are licensed in many states.

Brent A. Wood  Direct 702-629-9555  brentawood@hotmail.com   

Licensed Mortgage Agent  10 years Mortgage Industry Experience  NMLS# 327581

All Western Mortgage  770 Coronado Center Dr. #200 Henderson, NV  89052 

NMLS# 370640  Corporate 702-938-3566

$100 Down Home Loans - NATIONWIDE

$100 Down Home Loans are still available, nationwide, and the rates and terms are great. 

The loans are the same as FHA loans which typically require 3.5% down.  The difference is that you must buy a HUD owned home.  Typically this is a home that was insured by the U.S. Department of Housing and Urban Development's Federal Housing Administration. 

For a list of HUD owned homes in your areas, visit:

http://www.hudhomestore.com/HudHome/Index.aspx

203k Home Improvement loans are allowed.

For more information, contact me at 702-629-9555
or email brentawood@hotmail.com.  I have a great Realtor for the Las Vegas area that I would be glad to put you in touch with.

203k (REFURB) loans are EASIER thank you think VIDEO

If you are like most people, you want a home that is a great investment, which means you want to find a bargain.  But many of the best bargains in today's market have issues that must be addressed to make the home  ready to occupy.  FHA 203K mortgages solve that problem.  Keep in mind, 203k loans are FHA mortgages with the same down payments, liberal credit requirements and features as traditional FHA loans.

In the past, FHA 203K loans were very difficult to navigate and often transactions didn't close on-time or repairs weren't made properly.   Now with the new Streamline 203k and a team of experienced professionals, the loan should close in 40-60 days and the repairs should be completed in a month or so.

For more information about 203k mortgages, call Karl Holt at 702-629-0716 or email kholt@awmlv.com

 

Best regards,

Brent A. Wood
702-629-9555
brentawood@hotmail.com

Welcome VIDEO

Welcome to our Blog about Mortgage and Real Estate Finance.  Karl and I are excited about the present opportunities available to those who are armed with the information they need to take advantage of today's Real Estate Market and Mortgage/Finance options.  Please feel free to contact us or post your comments and additional tips for clients and industry professionals.

Best regards,

Brent A. Wood
702-629-9555
brentawood@hotmail.com

To begin a mortgage application with Karl Holt, simply visit karlholt.myallwestern.com/  or call him at 702-629-0716

Mortgage Myth #3 - Hard Money (Private Investor) Loans

2012 MORTGAGE MYTH #3

Hard Money (aka Private Investor) Loans are a bad deal –  Opportunity abounds for Real Estate investing throughout the country.  In certain areas, like Las Vegas, property values are disproportionately low, compared with rents.  So even with a Hard Money Loan at 12% interest, the interest only payment can still be very favorable.  Take this example:  A client buys a rental property for $80,000 with 25% down.  The payment is 1% interest only - $600 per month.  Assuming taxes and insurance are $120 per month and the home rents 11 out of 12 months each year for $1,000, the home would have a positive annual income of $2,360/year.  Assuming $12,000 in acquisition costs and initial repairs, the total initial investment is $32,000.  The resulting Return on Investment is 7.375%.  This is for illustrative purposes and it shows a realistic scenario where even a Hard Money Loan can be beneficial to a client.  Of course all investments have risks and clients should consult Professionals before investing.

Mortgage Myth #2 - can't buy a house for years after Foreclosure, BK or Short Sale

2012 MORTGAGE MYTH #2

You can’t buy a home for several years after a Foreclosure, Bankruptcy or Short Sale. 

That is true for Conventional and HUD home loans, but there are alternatives.  In fact, you can contact Karl Holt at kholt@awmlv.com for info. about his 2^nd Chance Home Loan that can finance a home after only one year after Short Sale, Bankruptcy or Foreclosure.   As with all loans, there are restrictions and a larger down payment between 15% and 25% is required.  

Also, hard money loans are also available where credit isn’t a factor, at all and there is no waiting period after a Bankruptcy, Foreclosure or Short Sale.  Ability to make the payments is the most important factor in Hard Money Loans (aka private investor loans).  Down payments are typically 25-30 percent and it is extremely important to be sure you have a payment that is affordable and terms that will give you the time necessary to refinance into a traditional mortgage.  Also, watch out for interest rates above 12 percent and up front fees in excess of 10 percent.   Karl Holt has is a great source of information for these loans, as well.  kholt@awmlv.com   As with all mortgages, read the fine print. 

Mortgage Myth #1 - Perfect credit is need to get a mortgage

2012 MORTGAGE MYTH #1

Perfect Credit is needed to get a mortgage because of the new laws and banking regulations - Since the Mortgage Industry meltdown of 2007, there have been many erroneous reports in newspapers, radio news programs and television news reports.  It is true that stated income, no qualifying loans with no money down have gone away.  And it is true that numerous laws have been passed to regulate and control the mortgage industry.  However, FHA loans are still available and they still are very liberal when it comes to credit qualifying.  Clients can still qualify with alternative credit references and history like phone bill records, gym memberships, etc.  By the way, downpayments for FHA loans are still 3.5%, but we expect the down payment requirement for FHA loans with poor credit to increase in the next few months to 10%, so if you are interested in buying home using an FHA loan, now is the time.

Help for UNDERWATER Homeowners

FHA, Fannie Mae and Freddie Mac refinance options

Until now, homeowners who are underwater and making their payments have had few options that actually work.  Today's low rates are an excellent opportuntiy to save money, but for those who are underwater, there were few options.  Those who have FHA loans could and probably should do and FHA streamline, but many homeowners have loans guaranteed by Fannie Mae or Freddie Mac. Now, there is a similar program for Fannie / Freddie Customers called HARP 2.0.

FHA Streamlines allow homeowners to refinance without an appraisal without the normal income documentation.  This means that if you still have a job/steady income, even if it is less, you can probably still qualify.  If you have one or fewer mortgage lates in the last 12 months, but you have other credit issues, chances are, you can still refinance.  So even with being upside down and having credit or income issues, you probably still can qualify for a lower rate and payments, if you are on-time with your mortgage.

Now the same can be said for Fannie Mae and Freddie Mac loans.  This program is effective in Mid-March and there is no telling how long it will last.  If you want to know if your mortgage is a Fannie Mae or Freddie Mac loan, contact us and we will look it up for you. 

More Information

For more information and details, visit www.hud.gov or contact either of us directly. 

Karl Holt, All Western Mortgage, 702-629-0716

Email kholt@awmlv.com 

Website  kholt.myallwestern.com

 Brent Wood, 702-629-9555, brentawood@hotmail.com

Information is for illustrative purposes only.  Rates used are averages as of date written and are subject to change without notice.  Taxes, Insurance and PMI are included and estimated based on typical cases.  Details of rates, payments and fees should be provided by Lender within 3 days of application.  Only a formal Good Faith Estimate provided by your Lender should be relied upon.  Information does not constitute legal, tax, financial, investment or other professional advice.  Consult your financial, legal,tax, real estate, investment or other professional before investing, refinancing, acquiring or selling property. https://karlholt.myallwestern.com/Short-Form.aspx

Miracle Makeover Mortgage

Miracle Makeover Mortgage

What if you could put $8,225 Down on a $200,000 home and get $35,000 cash to re-do the bathrooms, install new flooring, paint the interior, buy new appliances and install a new patio in the backyard?  What if after you are done, the mortgage is $230,000 and the value is $260,000 (much more than the acquisition costs and repairs costs, building equity immediately.  Plus, the home reflects your tastes and needs.  All this and your payment is well under than $1,750.00 per month. 

That is the miracle of today’s low rates plus low property values, using HUD’s 203k (Refurb.) Mortgage. 

Two Types of 203K Mortgages

There are two types of 203k mortgages.  The streamline gives homeowners up to $35,000 for refurbishing the home and/or making it more energy efficient.  It is considered a streamline because of the loan limit and because it has less paperwork and does not require a general contractor.   Homeowners can even do the work and only use the funds for supplies, if they want to get more bang for their buck.  203k loans are also available for bigger projects needing more than $35,000, but more paperwork and contractor involvement is required.  Either way, this is a great way to build equity, customize your home and make it more energy efficient.  203K Loans are also available for the home you already own, not just a home you are buying.

More Information

For more information and details, visit www.hud.gov or contact either of us directly. 

Karl Holt, All Western Mortgage, 702-629-0716, kholt@awmlv.com

All Western NMLS License # 14210, 370640

Brent Wood, 702-629-9555, brentawood@hotmail.com 

Not affiliated with any company and not conducting any loan origination or real estate services, whatsoever.  Questions about rates, fees, etc. must be referred to a licensed mortgage agent or entity. 

 

Information is for illustrative purposes only.  Rates used are averages as of date written and are subject to change without notice.  Taxes, Insurance and PMI are included and estimated based on typical cases.  Details of rates, payments and fees should be provided by Lender within 3 days of application.  Only a formal Good Faith Estimate provided by your Lender should be relied upon.  Information does not constitute legal, tax, financial, investment or other professional advice.  Consult your financial, legal,tax, real estate, investment or other professional before investing, refinancing, acquiring or selling property.