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Monitor Your Credit

Do you know your credit score (fico)? If not, you should. Everything we do now-a-days is based upon our credit worthiness. Knowing your score is important considering that it is one of the first things that any lender will look at. Not only that, it’s a good idea to review your credit report at least once per year in case there are any errors or issues that may require your attention. It may take 90 days or longer to update your report unless you are willing to pay a few extra bucks to have it done immediately. If you are wondering whether or not your credit score is high enough to make a transaction, check with us. Usually, you need to have at least a 500 fico.

For more information on understanding your credit report click here.

Latest News

ARM Freeze Yields Solution To All World Problems

By Donna Robinson - OP-ED COLUMNIST

Lets congratulate the Bush administration, the Federal Reserve and the democrat controlled Congress. It looks like they have come up with a breakthrough approach to problem solving that may finally end the world's problems once and for all.

The breakthrough came with the idea to freeze ARM rates so that borrowers will not be subjected to the terms of the agreements that they voluntarily signed. Combine that innovative thinking with the ongoing efforts to save Wall Street from its own irresponsible actions. It seems that the U.S. government and the federal reserve will finally succeed in realizing a foundational tenet of liberal politics - change the laws and the way financial markets work so that we can eliminate personal responsibility and individual accountability once and for all.

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Bank of America bails out Countrywide

In the latest news: Bank of America infused $2 billion into Countrywide Home Loans improving the nation’s largest mortgage lenders liquidity, stemming investor fears and taking Countrywide off the endangered company list. This major move along with the drop in rates by the Fed has already began to return mortgage capital markets to more normal levels of activity sooner than anticipated.

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Regulators to mortgage lenders: You can do better

Lenders urged to do a better job determining if subprime borrowers can repay loans, and to offer more loan cost info. Source: CNN

March 2 2007: 12:01 PM EST

WASHINGTON (Reuters) -- U.S. regulators urged mortgage lenders in draft guidance Friday to better evaluate whether less credit-worthy borrowers will be able to repay their loans and make clear the risks they face as mortgage rates are reset.

The proposed guidance, obtained by Reuters, asks lenders to weigh a "borrower's ability to repay the debt by its final maturity at the fully indexed rate, assuming a fully amortizing repayment schedule," the document states.

Regulators are concerned lenders are issuing mortgages to borrowers with little proof that they can repay their loan and do not fully understand the risk of increasing payments, the document states.

Subprime borrowers could find themselves unable to afford monthly payments after the initial "teaser" rate expires and make payments for taxes and other expenses if lenders do not hold such costs in escrow, the document states.

Subprime borrowers also face the risk of "losing their home," the document states.

The document also outlines a series of consumer protection principles that lenders should bear in mind such as providing ample information about the long-term costs of the loan and the risk of future "payment shock."

The new guidance is expected to be officially released Friday. The regulators will open a 60-day comment period during which it is seeking comments from the lending industry, according to the document.

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Subject: Payment Advantage

A 5/1 ARM like no other!

Countrywide, America's Wholesale Lender is proud to present our Payment Advantage 5/1 ARM. With a fixed rate for the first five years of the loan and up to four monthly payment options during the first ten years*,your qualified borrowers can have options that give them an advantage in effectively managing monthly cash flow and helping meet their financial goals.

Program features:

- Available on Owner-Occupied, Second Home and Investment properties

- 30- and 40- Year terms offered

- Full, Reduced and SISADoc Types

- Up to four monthly payment options

To learn more about the many advantages of our Payment Advantage 5/1 ARM program, call me today.

Properties for Sale

Want to list a property in this section? Send us an e-mail with a link to pictures or provide basic information to be posted in this section.

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Single Family Homes

NEW LISTING!!!

Asking Price: $199,500

1609 Donnybrook Ln

Imperial, MO 63052

Own this home for just $1180 per month!

Contact Seller

Need Financing? Up to 100%

Investment Properties

2 Family $145,500
4629 Minnesota

St Louis, MO 63111
Motivated Seller
South City

Contact Seller

Need Financing? Up to 100%

Condo $150K
1722 Preston Place

4 Fam $139K
South City

4 Fam $150K
South City

4 Fam $139K
North City

4 Fam $120K
North City

Contact Seller

Need Financing? Up to 100%

Manufactured Homes

Modular Home $50K
Annapolis, MO

Contact Seller

Need Financing? Up to 95%

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Market Conditions

Mortgage Industry Equity Composite

National Mortgage News has compiled a Mortgage Industry Equity Composite, intended to reflect developments in the mortgage industry. The Composite includes stocks representing all major segments of the industry: banks, thrifts, non-depository lenders, GSEs, mortgage insurers, title insurers, technology vendors, commercial real estate finance companies, builder-lenders, sub-prime and high-LTV lenders. The Composite is intended to be a representative sample only. The exclusion or inclusion of a stock should in no way be interpreted as a statement about the importance of the underlying company.

Mortgage Industry Equity Composite

Mortgage Advice & Insider Secrets

Subject: How Do I Choose the Right Broker?

Being bombarded by mortgage companies and brokers can become confusing, between interest rates, closing costs, points and experience – How can a person make an intelligent decision?

Advice: Key word “intelligent”. More often than not, most consumers make there buying decision on who ever rubs them the right way. While this may do wonders for your ego, you could end up paying for it – literally. When making a financial decision, that decision should be based on the numbers. But which numbers you ask? Most mortgage brokers are in the habit of “hiding” their fees – this is because most believe that customers would throw a fit, and they usually do. This comes from the fact that most customers have no idea what would be considered a normal fee, therefore they can not intelligently determine if they are being over-charged or not. Let’s establish a few facts first. First of all, the broker’s fee is a percentage of the loan. If you are speaking with a Loan Officer who works for a Broker, that Loan Officer is only getting a percentage of a percent typically 35 – 50%. That means the higher the loan amount, the more money the broker should make. This percentage is often called points, 1 point = 1 percent. What is fair? On a $200,000 loan 2 points ($4000 out of which your Loan Officer will make 35 – 50% or $1400 - $2000 far less than what a Real Estate Agent would make: 3.5 – 7% in their pocket) would be considered reasonable. Because this is a percentage, the number of point you are charged most likely will be higher on lower loan amounts and lower on higher loan amounts (the law limits this to 3% on conforming loans above 640 credit and 6% on non-conforming below 640 credit). Typically, you can expect higher points if your loan is a difficult file or will require special attention. Points are charged “up front” and represents the total of your “Loan Origination Fee”, “Mortgage Broker Fee” and sometimes hidden under the title “Loan Discount”. In addition, there are a number of third party fees that all borrowers must pay no matter who you go through (approximately $2500 before the broker has charged you a single penny!). So don’t let closing costs fool you. No matter what any broker or banker tells you, trust me – you will pay these fees. There is only one other way for your broker to get paid: “on that back” through what is called Yield Spread Premium (YSP). This translates into a higher interest rate for you and most likely will increase your monthly mortgage payments. This is completely hidden from the borrower and difficult to determine. Most brokers will use a combination of these: points and ysp. If your broker is fair, you should have lower points with higher ysp and higher points with lower ysp. Unfortunately, a few brokers will max out both fees. I refer to this practice as “head-busting”. So is it better to go ahead and pay the fees up front or on the back? If you plan to be in the home for more than 2 years it is always better to pay the points; if you will be there less than 2 years or if you are making a purchase and don’t have money for a down payment, it is better to pay on the back.

Always obtain a good faith estimate so that you may identify these fees. Also, be aware that brokers are not required to fully disclose this information on your Good Faith (although they should!) and it can be difficult to determine if it is just the old bait and switch. Beware of any lender who claim “no points” or “no closing costs”, since they have to get paid one way or another, you will be the one paying for it one way or another. Save yourself a lot of hassle and time by working with one of our professionals.

Subject: Pay-Option ARMS

There's a growing wave of refinances sweeping certain segments of the business: payment-option ARMs. Too many consumers are opting to make only the minimum payment on these loans to increase spending money without regard to negative amortization.

Advice: If you decide to take advantage of the lower payment offered by a pay-option ARM, make sure you have a plan in place on how to reinvest the money you save to earn a profit. This way you can offset any negative amortization. Your broker should be working closely with your financial advisor or be able to recommend one to you.

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Loan Types

Tools

| St Louis City Database | St Louis County Database | St Charles County Database |

Links

| Wanna Network |