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"Conversations With Carrie"
This is a very interesting sign of the times. The National Association of Realtors is responding to the scads of sad stories, difficult situations Americans all over the country find themselves in, record losses to foreclosure, short-sales and no small amount of hype and negativity to go along with it. For an industry association in the businesses of representing folks buying and selling homes, this is bold. And necessary. It just doesn’t tell the whole story.
Depending on the relationship you have with your real estate agent and your trust level with that person, it can be intimidating and you could question their motives when they tell you things like, “We need to move quickly.”, “There are multiple offers on this property.”, or “We need to go in with your highest and best offer.”. I’m here to tell you that it’s not them – it’s the market and you need to pay attention to what they’re telling you. Their motives are pure. They want you to win and get the house that you’re making an offer on. These statements that they make are simply a product of the market that we’re in today in Minnesota.
Minnesota may be frozen solid from anytime in November through March (most years) and we’ve been haggling over stadiums for professional sports teams for as long as most of us can remember, but there are many reasons to plant – and keep – our roots here through home ownership. Employment opportunities, quality of education, community involvement, consistently high voter turnout numbers and many other factors contribute to the “livability” of a city, county and state – and Minnesota’s got it all.
Online mortgage calculators are a prime example of why the internet cannot replace human beings. The internet is a great place to gather information, find resources and explore options. If it weren’t, I wouldn’t be writing here today. BUT, it can also be a source of great disappointment if you rely on information that is what is commonly referred to as, “garbage in, garbage out”. Particularly when it comes to first time home buyers, I suggest staying away from online mortgage calculators. Why?
Did your parents ever order you to “March!”? It usually meant to get moving in a direction you’d already been told to go but had procrastinated, repercussions had now been threatened and you got your – well – ‘marching orders.’ While I do not want to be viewed as the “Mean Mommy of Mortgage” here, I do want to point out some very important things you should be thinking about, planning for and doing in this last month of the first quarter 2012.
The combination of the new HARP 2 Underwater Refinance Program for those with Fannie Mae or Freddie Mac owned mortgages and FHA’s updated mortgage insurance premiums for their refinance program could help a large number of faithful Minnesota homeowners who have been patiently – or not so patiently – waiting for options to refinance their underwater mortgages and take advantage of today’s record low interest rates.
Housing affordability conditions are the most favorable they’ve been for Americans since 1970 – the year they started analyzing housing affordability and keeping track. What does that mean? The Housing Affordability Index considers things such as median home price, median family income and averages mortgage interest rates. The higher the index, the more buying power buyers have. Today – home buyers have LOTS of power!
My version of the “Ides of March” is generally far less dramatic: This time of year, I’m ready to drop kick winter, reduce the number of layers I wear and watch trees leaf out, but all my wishing and wanting won’t make it happen any faster than it’s going to on its own. But this March in particular has me thinking that there are some potentially serious “Ides” for renters, people who want to own a home at some point, homeowners paying more than 5% in interest on their mortgages, homeowners who have some equity, folks thinking of downsizing and anyone who needs a roof over their head. I call them “I’ds.”
Credit has become more important than ever and rules, monitoring and eventual applications and implications are changing quickly and often. But it’s also important not to get scammed when trying to avoid one. There are a lot of companies and services out there advertising free credit checks and information who are trying to lure you into signing up for premium services that require monthly fees – and that’s just not necessary for the average person.
Are you a home owner in crisis? Do you have questions you need answers to about how to navigate through? Join the Woodbury Community Foundation and leading industry experts, get answers and discover how to make the best choices for your financial and housing situation at this Housing Solutions Summit. Our own Heidi Pavelka will be speaking about mortgage lending options, special mortgage programs and credit.
Watch this video for information on the upcoming First Time Home Buyer Class
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