tag:blogger.com,1999:blog-353269552024-02-03T00:43:14.937-07:00Private Mortgage BankingJames A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.comBlogger34125tag:blogger.com,1999:blog-35326955.post-65318883968197400282008-08-26T12:32:00.000-06:002008-08-26T12:59:41.821-06:00Fix and Flip Program for Colorado and Arizona Real Estate InvestorsFor investors interested in taking advantage of resuced property values by participating in renovating and re-listing properties should take a look at the great investor program we are offering our clients.<br /><br />This product is specifically designed to accommodate investors who want to purchase and remodel fix-up properties in order to sell them for a gain or to refinance them under conventional terms once the property has been remodeled. The program not only works for 1 to 4 residential units, but also for commercial properties which have 5 or more units. The program is offered in metropolitan Denver, Colorado and surrounding cities, also in metropolitan Phoenix, Arizona and surrounding cities. The loan term is for 180 to 360 days, depending on property type. There are NO prepayment penalties and interest only payments are due monthly.<br /><br /><strong>PROGRAM HIGHLIGHTS </strong><br /><br />Our investor lends up to 90% of the purchase price and additionally lends 90% of the improvements that the borrower estimates they will make to the property. The borrowers are allowed to do work to the property themselves as it is not required that contractors complete the work. <br /><br />We can use equity in other properties (known as cross-collateralization) for the down payment on the fix-and-flip property so that the borrower does not have to put cash into the transaction, provided that our loan-to-value and other guidelines are met. <br /><br />We allow the properties to be titled in the name of corporations, partnerships or limited liability companies. This is very popular with fix-and-flip investors. <br />Borrowers who are self-employed find the loan quick and easy to qualify for because we have flexible income underwriting. <br /><br />We do not have a specific limit on the number of investment properties that the borrower has financing on. <br /><br />We close these loans very quickly. We typically provide approvals within 24 hours and many closings occur within 1 (one) week of approval. Our quick closings often help the buyer get a contract over other prospective buyers. <br /><br />We do not have any prepayment penalties. Naturally, this is of great importance to fix-and-flip investors. <br /><br />We allow partial releases of multiple unit properties.<div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com287tag:blogger.com,1999:blog-35326955.post-18885356447191030322008-08-04T11:20:00.001-06:002008-08-04T11:24:45.404-06:0026 Commercial Property Types Available in All 50 States!<strong>26 Commercial Property Types Available in All 50 States!</strong> Wholesale Loans down to $250K to $100+ million with middle score down to 650.<br /><br />Apartments, Multi-Family 5+ Units <br />1-4 residential next door to each other adding up to 5+ units <br />One time close construction to perm Multi-Family properties <br />Mixed Use as small as one apartment component and one commercial component <br />Mobile Home Parks 3 star or higher <br />Single Tenant<br />Office Buildings <br />Office Condos <br />Strip Malls <br />Retail Shops <br />Lt Industrial + Warehouse <br />Auto Service, Tire Shops <br />Day Care <br />Assisted Living Care and construction to perm <br />Flagged Hotels/Motels <br />Country Clubs & Golf Courses <br />Funeral Homes <br />Bed & Breakfast <br />Grocery Stores <br />Restaurants <br />Car Washes <br />Bowling Alleys <br />Movie Theaters <br />Bars/Taverns <br />Bridge Real Estate Loans from $1 Million to $15 million<br /><br />Contact James Holmes Directly at 303-350-1768<div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com23tag:blogger.com,1999:blog-35326955.post-11171482042912210892007-09-14T11:37:00.003-06:002008-05-08T17:45:22.140-06:00Steps for Instant Pre-Approval<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-lRsfcu_Ec_46rLKmeE45FM3qqApYVN3IbkdGk5WqhBiAU2pm43bWJk5D6BTJYRHVfyzc4bB1mV4vPkncEdmcPUyKu3FmNYmHUxfMOt3iGFhCJNeT2YxVKIM1zjirisBQADON/s400/Home+in+Hand+Blue.jpg"><img style="FLOAT: left; MARGIN: 0px 10px 10px 0px; WIDTH: 140px; CURSOR: hand; HEIGHT: 126px" height="256" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-lRsfcu_Ec_46rLKmeE45FM3qqApYVN3IbkdGk5WqhBiAU2pm43bWJk5D6BTJYRHVfyzc4bB1mV4vPkncEdmcPUyKu3FmNYmHUxfMOt3iGFhCJNeT2YxVKIM1zjirisBQADON/s400/Home+in+Hand+Blue.jpg" border="0" /></a> <div><strong>Please follow these steps:<br /><br />Step 1:</strong> Log onto our website using the following link and complete the loan application. <div></div><br /><a href="https://rwstools.com/loan-app/startloan.asp?PVLID=25533&refer=&ACCTID=327127&PID=1">CLICK HERE TO APPLY ONLINE</a></div><strong></strong><div><strong></strong></div><div><strong></strong></div><div><strong><p></strong></p></div><div><strong></strong></div><div><strong>Step 2:</strong> Fax the following documents to James Holmes at 303-468-8445. Here is the checklist</div><div>1.) Pay stubs covering the most recent concurrent 30 day period. 2.) Bank statements for your checking and savings accounts covering the most current two month period and quarterly statements for all 401K and IRA accounts. Please be sure to include all pages of the statement regardless of the information contained on each page.<br /><br /><strong>Step 3:</strong> Shortly after receiving your application we will send you initial loan disclosures via email. Print, sign and return the disclosure documents to James Holmes at 303-468-8445. Please Note that signing the attached disclosures does not obligate you to closing a mortgage loan with our company.<br /><br />Once we have received your information we will immediately process your request and issue a letter determining whether your application is pre-approved and the terms available to you disclosed on a Good Faith Estimate and Truth in Lending disclosure.<br /><br />Please feel free to contact me directly with any questions you may have. I appreciate having the opportunity to assist you with the purchase of your new home. My goal is to identify your goals and priorities and help you find the correct mortgage program to meet your needs.<br /><br />Today is a great day for action!<br /><br />James <p></p></div><div></div><div></div><div></div><div></div><div>For Information on how to obtain up to $25,000 in downpayment and closing cost assistance contact James A. Holmes, Director of Private Mortgage Banking, <a href="http://privatemortgagebanking.net.rwslive.com/">Chartwell Mortgage Corporation</a> - The James Holmes Lending Team at Private Mortgage Banking or by calling me toll free at 888-850-6100 or email at <a href="mailto:james@privatemortgagebanking.net">james@privatemortgagebanking.net</a> </div><div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com1tag:blogger.com,1999:blog-35326955.post-23423097760907177652007-08-03T14:36:00.000-06:002007-10-31T10:56:23.329-06:00Denver Metro Bond Announced for First Time Home Buyers<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi1yYaQ9oswn6qeRpIDmg2AAW6jUvBv6R5VXd-Z5McQaNz42Hn8B27I7blAOcibcVGMhXRR4CdCQerT_sryMBHsXfhDttrSBOzN6Bty70wW9k6ntlGaP2sWvEk_rjBvxAr7CWR3/s1600-h/Hands+Holding+Money.jpg"><img id="BLOGGER_PHOTO_ID_5127545164089017698" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; CURSOR: hand" height="128" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi1yYaQ9oswn6qeRpIDmg2AAW6jUvBv6R5VXd-Z5McQaNz42Hn8B27I7blAOcibcVGMhXRR4CdCQerT_sryMBHsXfhDttrSBOzN6Bty70wW9k6ntlGaP2sWvEk_rjBvxAr7CWR3/s320/Hands+Holding+Money.jpg" width="105" border="0" /></a><br /><div>I am pleased to announce that we are once again participating in the <strong>Denver Metro Bond 2007 B&C Program</strong>, which enables us to offer a <strong>4% Down Payment Assistance Grant</strong> to borrowers who qualify; please note that this is bond (not a mortgage) and the funds DO NOT require repayment. In addition, the 30 year fixed rate mortgage provided as part of the program is offered at a preferred interest rate of 6.59%.<br /><br />Following are specific details associated with the program:<br /><div align="center"><br /><strong>6.59% with 4% Down Payment Assistance Grant</strong><br /></div><br /><div align="left">We believe that this 6.59% interest rate (30-year fixed rate, 1.00% origination fee/0.00% discount) is an excellent rate in the current market! Moreover, it will provide a tremendous benefit to the low- and moderate-income first-time homebuyer families throughout Denver and the surrounding participating cities.</div><div align="left"><br />Here are the basic program requirements for eligible mortgagors:<br /><br /><strong>Eligible Loan Area:</strong> Mortgage loans under the program may be made to qualifying borrowers in the City and County of Denver, as well as in the following jurisdictions of the Metro Mayors Caucus that have chosen to participate in the 2007B&C program to date: <span style="color:#ff0000;">Arvada, Aurora, Bennett, Brighton, Broomfield, Centennial, Dacono, Edgewater, Erie, Federal Heights, Frederick, Golden, Greenwood Village, Lafayette, Littleton, Lone Tree, Longmont, Louisville, Northglenn, Sheridan, Superior, and Westminster.<br /></span><br /><strong>First-time Homebuyers:</strong> Borrowers cannot have owned a home in the past 3 years (except if purchasing homes in "Targeted Areas"). Targeted Areas are census tracts designated by IRS and will be specifically identified in the Agreement. In addition, qualifying Veterans need not be <strong>first-time homebuyers</strong> in this 2007B&C program.<br /><br />Maximum Family Income: Non-Targeted Targeted<br />Families of 2 or fewer $71,700 $86,040<br />Families of 3 or more 82,455 100,380<br /><br />Maximum Acquisition Cost: 1 Family Residence $365,175 $446,325<br /><br />Additional Mortgage Loan Terms: Mortgage Loan Term – 360 months <p><br /><span style="color:#ff0000;">Rate – 6.59%<br />Origination Fee – 1.00%<br />Discount Fee – 0.00%</span></div><br /><div align="left">The funds will be allocated on a "First Come, First Served" basis and I have created a very simple process for you to refer your clients, have them apply, reserve their funds and submit their documents.</div><br /><div align="center">Five Steps to Loan Approval</div><br /><div align="left">Here are the steps:</div><br /><div align="left">1. Direct your borrowers to <a href="http://www.privatemortgagebanking.net/">http://www.privatemortgagebanking.net/</a> where they can read the program guidelines.</div><br /><div align="left">2. Have them follow the "Apply On Line" link found on the upper right corner of my home page. Have your clients complete the "Complete - Full Application," here is a direct link to the form - <a href="https://rwstools.com/loan-app/startloan.asp?PVLID=5351&refer=&ACCTID=307458">https://rwstools.com/loan-app/startloan.asp?PVLID=5351&refer=&ACCTID=307458</a></div><br /><div align="left">3. Have you clients fax 1.) A pay stub covering a 30 day period for each of their employers. 2.) Copies of their 2007, 2006, 2005 1040 Federal Tax Return with ALL schedules. 3.) The most recent two months bank statements for all checking and savings accounts, and the most recent quarterly statements for all IRA, 401K and investment accounts.</div><div align="left"></div><br /><div align="left">4. Name address and contact information for their landlord. THE FAX NUMBER IS 303-468-8445</div><br /><div align="left">5. Mail a check in the amount of $25.00 payable to Cherry Creek Mortgage Company to pay for their credit reports. The $25.00 fee will be credited to the borrowers HUD Statement at closing.</div><br /><div align="left">6. Once we receive the borrowers application and credit report we will obtain automated underwriting approval and issue pre-liminary loan approval.</div><br /><div align="left">Please feel free to contact me with any questions you may have and please keep in mind the reservation is in the name of the borrower, not the property address.<br />I hope that you are able to take advantage of this fantastic program. We were fortunate to close a number of transactions with the 2006A and 2007A programs and the borrowers were very pleased with the outcome. <p><br /></div><div align="left">Mr. James A. Holmes, CML, CMPS Certified Mortgage Planning Specialist<br />Private Mortgage BankingCherry Creek Mortgage Company, Inc.The James Holmes Lending Team Office: 303.840.2319 Fax: 303.468.8445</div><br /><div align="left"><a href="mailto:james@privatemortgagebanking.net">james@privatemortgagebanking.net</a> </div><div align="left"><a href="http://www.privatemortgagebanking.net/">http://www.privatemortgagebanking.net/</a><br /><a href="http://www.activerain.com/JamesHolmes">www.ActiveRain.com/JamesHolmes</a><br /></div><div align="left">Integrity. Expertise. Exceptional Value.<br /></div><a href="http://www.mmgweekly.com/w/index.html?SID=6c1da886822c67822bcf3679d04369fa" target="_blank"></a></div><div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com2tag:blogger.com,1999:blog-35326955.post-91385044206235559632007-07-03T09:00:00.000-06:002007-07-02T22:50:12.415-06:00Valuable Information for Flipping Real Estate from Armando Montelongo of the Hit A&E Series "Flip This House"<a href="http://www.blogger.com/%3Cp" align="center"><div align="center"><strong style="FONT-WEIGHT: 400"></a></strong></div><a href="http://jamesholmes.armandomontelongo.com/" target="_blank"><img alt="Click here to join ArmandoMontelongo.com" src="http://www.armandomontelongo.com/group/affiliates/banners/banner8.gif" align="center" border="0" /></a> <p align="center"></p><a href="http://www.blogger.com/%3Cp" align="center"><strong style="FONT-WEIGHT: 400"></a></strong><div>As many of you know, I have been on an interesting journey since making my debut in Real Estate Reality Television by virtue of the <strong>HGTV</strong> hit series "<strong>My First Place</strong>." One of the greatest joys for me has been meeting a variety of new people who share my passion for real estate and my love for the emerging media called reality television. I have had the good fortune of getting to know <strong>David & Melina Montelongo</strong> and <strong>Armando and Veronica Montelongo</strong> all from the <strong>A&E</strong> show "<strong>Flip this House</strong>," and successful real estate investors from San Antonio, Texas. </div><div></div><br /><div>As I have previously posted, I have had <strong>David Montelongo</strong> on my radio show and have posted his tips for real estate investors. Please see: <a href="http://activerain.com/blogsview/49395/One-hour-of-education" rel="bookmark">One hour of education from an expert...PRICELESS</a>. In addition, we are looking forward to participating in David and Melina's investor workshops this summer and fall in Texas.</div><div></div><br /><div>There is something very important that I want to share with you today. <strong>Armando Montelondo</strong> has authored a new e-book titled "<strong>Flip it Now!</strong>" and as part of the launch <a title="Armondo Montelongo E Book" href="http://jamesholmes.armandomontelongo.com/" target="_blank">Armando is making five pages available to you free of charge. </a><br /></div><br /><div>If you are interested in obtaining your five free pages of the book click on this link:<br /></div><br /><div><a href="http://www.jamesholmes.armandomontelongo.com/">Armando Montelongo's E-Book Free Offer </a></div><br /><div></div><div>Armando has also teamed up with Internet millionaire Joel Therien, president of <a href="http://www.hotconference.com/">http://www.hotconference.com/</a> a very popular website and has launched a new site <a href="http://jamesholmes.armandomontelongo.com/">Armando Montelongo </a>. Armando Montelongo's new site is very different in that it allows people to communicate in real time audio and video conferencing in a secure environment. People can join free knowing that others on the site will enjoy learing about their opportunities. The site is a social networking site catered to one market, entrepreneurial people and business opportunity seekers. "The site is there for all types of people who want to meet with others who have some of the same business interests" says Therien. The site caters to success minded individuals.<br /></div><br /><div>You can visit the site at:</div><div><br /><a href="http://www.jamesholmes.armandomontelongo.com/">Armando Montelongo Site</a> </div><div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com10tag:blogger.com,1999:blog-35326955.post-84187558895940464942007-06-23T19:38:00.000-06:002007-06-23T19:56:20.779-06:00We Value Our Clients and Build Relationships<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8_6zfjRNHGTlv_uGM2FcpBfYlzEUpjhRkqEFIixILr6A9hRZKdyWU164LYT49BebO-pWB15iyLZYxOLflx_71vhabXtMpNtGS99x3XrkOiCv6OfVISsHOFxJEiOcpg0fC8FVN/s1600-h/2007+James+Holmes+Full+Body+I.jpg"><img id="BLOGGER_PHOTO_ID_5079441341164086466" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8_6zfjRNHGTlv_uGM2FcpBfYlzEUpjhRkqEFIixILr6A9hRZKdyWU164LYT49BebO-pWB15iyLZYxOLflx_71vhabXtMpNtGS99x3XrkOiCv6OfVISsHOFxJEiOcpg0fC8FVN/s320/2007+James+Holmes+Full+Body+I.jpg" border="0" /></a>For the majority of people a home mortgage is the largest debt obligation incurred in their lifetime and the manner in which this debt is managed will impact their long term financial well being. The selection of a mortgage product is a significant financial decision and should be undertaken with full knowledge of your options and how your choice will affect your long term objectives.<br /><br />We live in a world based on immediate gratification and often we are underserved by the advisors we depend on to provide expert advice in a variety of areas. Our approach to mortgage banking and the loan process is unique; we view our loan process as financial planning specific to the mortgage transaction. We begin every client engagement with a personal consultation, which allows us to identify your priorities and objectives for the transaction. Our goal is to determine which loan products address both your short term and long term goals while meeting your payment and equity requirements.<br /><br />Successfully closing your loan is only the first phase in a long term partnership with a long term view of ensuring your financial security. Our “preferred client for life” program is designed to assist you in managing your mortgage debt and equity on an annual basis. Annually we will conduct an annual review to ensure that your mortgage continues to meet your needs. It is important for us to understand the events in your life that affect your finances and how we can help you maximize your opportunities. We have designed our website to provide you with valuable information about the loan process, product choices, and how to make the most of your real estate investment.<br /><br />Thank you for providing us with an opportunity to serve you.<br /><br /><div></div><div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com14tag:blogger.com,1999:blog-35326955.post-2659117446793202582007-06-23T18:37:00.000-06:002007-06-23T20:15:38.771-06:00Stop Paying Your Landlords Mortgage Payments. Now Is The Perfect Time To Buy A Home.<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-lRsfcu_Ec_46rLKmeE45FM3qqApYVN3IbkdGk5WqhBiAU2pm43bWJk5D6BTJYRHVfyzc4bB1mV4vPkncEdmcPUyKu3FmNYmHUxfMOt3iGFhCJNeT2YxVKIM1zjirisBQADON/s1600-h/Home+in+Hand+Blue.jpg"><img id="BLOGGER_PHOTO_ID_5079432184293811218" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-lRsfcu_Ec_46rLKmeE45FM3qqApYVN3IbkdGk5WqhBiAU2pm43bWJk5D6BTJYRHVfyzc4bB1mV4vPkncEdmcPUyKu3FmNYmHUxfMOt3iGFhCJNeT2YxVKIM1zjirisBQADON/s400/Home+in+Hand+Blue.jpg" border="0" /></a> <span style="color:#333333;">I have made a strong commitment to assisting first-time homebuyers in their quest to obtain the dream of homeownership by utilizing a variety of low interest, low cost assistance programs. We partner with County, State and Federal agencies along with Quasi-Governmental agencies to provide access to the mortgage products needed to serve a broad number of first-time home buyers.</span> <div><div><div><span style="color:#333333;"><br /><div>I've marvel at the prospect of an individual choosing to rent in an environment that makes homeownership so attainable. If a person rents an apartment for $550 per month over five years they will have spent $33,000 with nothing to show in return. A person renting a single family home for $1,000 per month over five years will have spent $60,000 with nothing to show in return. Now, the landlord will be pleased to have interest paid, loan principal reduced, tax benefits received and equity appreciation gained thanks to the timely receipt of the renters hard earned dollars.</div><div><br />According to a study by the Metro Denver Economic Development Corporation as reported on their Monthly Economic Summary for March 2007: "the apartment vacancy rate in Metro Denver increased slightly from third quarter to fourth quarter but the fourth quarter 2006 vacancy rate of 7% stands well below the 7.9% vacancy rate reported a year earlier. For the year, the average vacancy rate in the seven-county region declined from 8.2% in 2005 to 7% in 2006. The study also reported that the last time the annual vacancy rate was lower than 7% was in 2001 when the metro region posted a 6.4% rate, and in the last five years about 25,000 rental units have been added to the market. The average monthly apartment rent also decreased from third quarter to fourth quarter. On an annual basis, the average apartment rental rate was 1.2% higher in 2006 than in 2005."<br /></div><div> </div><div>For More Visit:</div><div><br /></span><a href="http://www.metrodenver.org/DataCenter/DenverEconomy/MonthlyEconomicSummary_March07.icm"><span style="color:#333333;">Http://www.metrodenver.org/DataCenter/DenverEconomy/MonthlyEconomicSummary_March07.icm</span></a><br /><span style="color:#333333;"></span></div><div><span style="color:#333333;"></span> </div><div><span style="color:#333333;">The current trend of declining vacancy rates is expected to continue; add to that an increased rental rate, which some analysts have projected to increase as much as 4% over the next twelve months and you have an unfavorable environment for renters. The bottom-line is that the sales slump in the Colorado's housing market coupled with the general tightening in loan underwriting guidelines has resulted in fewer buyers, higher demand in rental units and increased rental rates. For renters who can qualify, now is the time to take advantage of low interest rates, increased inventory, seller incentives and a variety of assistance programs by purchasing a home now.</span></div><span style="color:#333333;"><div><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg1P7qQ04fjFMOtYLNO7aX225keZL86Eluf5_r8qImkuDYpSI5NYBhPdHu_aB7ogoBv9vJ80rAQY7pjAEGXvIV6A6BjL_sQ4VEdvraM5AH-Fcq5o3MhtMvOEJirQjTwuo97psUU/s1600-h/Home+in+Hand+Yellow.jpg"><img id="BLOGGER_PHOTO_ID_5079431119141921762" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; WIDTH: 113px; CURSOR: hand; HEIGHT: 109px" height="134" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg1P7qQ04fjFMOtYLNO7aX225keZL86Eluf5_r8qImkuDYpSI5NYBhPdHu_aB7ogoBv9vJ80rAQY7pjAEGXvIV6A6BjL_sQ4VEdvraM5AH-Fcq5o3MhtMvOEJirQjTwuo97psUU/s400/Home+in+Hand+Yellow.jpg" width="118" border="0" /></a>We emphasis the benefits of equity appreciation and the monthly cash flow benefits of owning a home as a result of interest and property tax deductions. I recently assisted a client who was struggling with the idea of increasing his monthly housing expense from his present rent of $1,500 to a new mortgage payment of $2,050; once he realized that the net effect of his tax deduction would return $408 in monthly cash flow his net increase was only $142 monthly to own a home of his own.</div><div><br />The rent vs. buy decision is much easier to make once a renter grasp these concepts including the wealth building aspect of equity appreciation. All else being equal, I cannot think of a reason why anyone would be better served renting as opposed to buying a home of their own.</div><br /><div>For Information on how to obtain up to <strong>$25,000</strong> in downpayment and closing cost assistance contact James A. Holmes, Director of Private Mortgage Banking, Cherry Creek Mortgage Company - The James Holmes Lending Team at </span><a href="http://www.privatemortgagebanking.net/"><span style="color:#333333;">http://www.privatemortgagebanking.net/</span></a><span style="color:#333333;"> or by calling me toll free at 888-850-6100 or email at </span><a href="mailto:james@privatemortgagebankinking.net"><span style="color:#333333;">mailto:james@privatemortgagebankinking.net</span></a></div></div></div></div><div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com17tag:blogger.com,1999:blog-35326955.post-27382398764401894462007-02-28T16:09:00.001-07:002007-06-23T19:21:00.545-06:00New Homeowners Benefit by Empowered Living Program<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmYYcba0_QFB0XPX0_6_Ed7KyO-3YSB3JWLpZAG9N7OrGNtqhcxvMtZfcM8JkWMLsGWt7XQXBFBR52p03b3-ZQHsNro_WbI0bROppfhKQmFNVMcmCidqrFQ49LUatlMrKzddYs/s1600-h/Complete+Team+Photo+2006.JPG"><img id="BLOGGER_PHOTO_ID_5079434344662361154" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmYYcba0_QFB0XPX0_6_Ed7KyO-3YSB3JWLpZAG9N7OrGNtqhcxvMtZfcM8JkWMLsGWt7XQXBFBR52p03b3-ZQHsNro_WbI0bROppfhKQmFNVMcmCidqrFQ49LUatlMrKzddYs/s200/Complete+Team+Photo+2006.JPG" border="0" /></a>We are looking for individuals that have the desire to own a home but due to a lack of down-payment, credit concerns or just plain fear, have not been able to purchase their first home. Purchasing a home is the first step to economic empowerment and we have created an initiative called "Empowered Living," which is designed to breakdown barriers to homeownership in association with our strategic partners.<br /><br /><div><div><div><div><div>Through the Lone Tree office of Cherry Creek Mortgage Company - The James Holmes Lending Team, we provide a gateway to access a wide variety of first time buyer programs, which will provide our buyers with as much as $25,000 to be used for down-payment and closing cost. The James Holmes Lending Team is a lending partner for the Douglas County Housing Partnership program among other programs. We will in effect become the coach for the first-time buyer and provide education, mentorship, access to the MLS system to access properties, provide discounts and incentives from our builders and related partners. </div><br /><div>Many renters can buy a home with little or no major increase in their total monthly payment obligation once the tax savings from owning a home are figured into the equation. If you pay $900 per month for rent over the next two years you will have paid $21,600 toward your landlords mortgage. We would like to help you convert those funds into equity in a home of your own. </div><br /><div>If you would like to know more or schedule a private consultation, please visit my website at <a href="http://www.privatemortgagebanking.net/">http://www.privatemortgagebanking.net/</a> and either email James Holmes directly at 303.840.2319</div></div></div></div></div><div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com4tag:blogger.com,1999:blog-35326955.post-28659563228376521462007-02-24T22:17:00.000-07:002007-06-23T20:04:32.188-06:00Real Estate Today! Radio Show Commentary from 02-24-2007<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg5mMkbDr-_wMvDgyOgYlli93DArDq9U7hHfPF86INNtxs7hVqzRhxHiYgN_C3iWEvc7P1mdDLygVLUMhlscqIdmV5IQsYezSoTIQRiJnQLf1EmoGzHTAEpCC2TqnoB-umzDKbf/s1600-h/James1.JPG"><img id="BLOGGER_PHOTO_ID_5079435577317975122" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; CURSOR: hand" height="224" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg5mMkbDr-_wMvDgyOgYlli93DArDq9U7hHfPF86INNtxs7hVqzRhxHiYgN_C3iWEvc7P1mdDLygVLUMhlscqIdmV5IQsYezSoTIQRiJnQLf1EmoGzHTAEpCC2TqnoB-umzDKbf/s320/James1.JPG" width="296" border="0" /></a> <div>The Real Estate Today Team has launched an initiative we call "Empowered Living," designed to identify, coach and create a minimum of 100 first-time <span class="blsp-spelling-corrected" id="SPELLING_ERROR_0">home buyers</span> in Colorado by the conclusion of 2007. In addition to assisting the buyer with the selection of the best valued home <span class="blsp-spelling-corrected" id="SPELLING_ERROR_1">available</span>, we will also provide access to a variety of down-payment assistance programs including grants and low interest loans with payments deferred for up to five years. I would like for anyone who is currently renting and wishes to achieve the dream of <span class="blsp-spelling-corrected" id="SPELLING_ERROR_2">home ownership</span> to contact me at <a href="http://www.realestatetodayshow.com/">http://www.realestatetodayshow.com/</a> or contact my office at 303-840-2319.<br /><div></div><br /><div>We have developed a valuable resource for fix and flip investors. Please contact us and request your free "Fix and Flip Investor Resource Guide."<br /></div><div>We have a free resource to allow individuals to access all of the available listings in the Multi List System (MLS) using a private password protected website. To register, <span class="blsp-spelling-corrected" id="SPELLING_ERROR_5">log on</span> to <a href="http://www.rkymtnmls.com/">http://www.RKYMTNMLS.com/</a>.</div><div></div><div>I admit that I am a fan of real estate reality television and I think the programs on both A&E and TLC serve to show what is possible and the potential pit falls when flipping real estate. I had the honor of welcoming David Montelongo of Montelongo House Buyers and the hit reality television show “Flip this House” as a guest on our radio broadcast the Real Estate Today Show. I think that the Montelongos represent what is possible in a very entertaining way; they have a wonderful family story. Needless to say, David’s appearance on our program was greatly anticipated.<br /><br />David shared ten tips for becoming a successful real estate investor and provided me with permission to post these on my blog.</div><div><br />Here are David’s Tips:<br /><br />1. Forge strong relationships with foreclosure agents so that when a new listing comes up you’re the first to hear about it.<br /><br />2. Create a power network of fellow investors, a TRIBE, if a deal doesn't work for you, it may work for someone else in your network.<br /><br />3. Try not to see other investors as competition, but as allies. This will create opportunities to be involved in more deals.<br /><br />4. Set your construction budgets early, do everything in your power to stick with your budgets.<br /><br />5. There are always unforeseens give your budget a line item for cost-overruns.<br /><br />6. Have your Contractor visit the property with you BEFORE you close. This will remove some of the unknowns.<br /><br />7. We are all motivated, both positively and negatively. If you find your positive motivation, it will be easier to find the next deal.<br /><br />8. You are the greatest asset you possess. Invest in your education. Every time I attend a RE workshop I come away with a new technique.<br /><br />9. Join your local Real Estate Investor Association; this is a great resource for rehab lenders.<br /><br />10. Don’t be afraid to partner on a deal, partners can leverage each others strengths to create a win-win situation.<br /><br />During my research for the show, I discovered that both David and his wife Melina share a heart to give back to the greater real estate community and they wish to share their success with others. I believe the cycle of living, learning, succeeding and giving back is the essence of significance. The response to our shoe was wonderful resulting in great questions on air from our listeners and calls from Realtor partners and several investor clients of mine who regularly listen to the program. The subject of fix and flips is a popular one on our show and the opportunity to learn from an expert was tremendous. </div></div><div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com1tag:blogger.com,1999:blog-35326955.post-22220250703939873202007-01-19T18:48:00.000-07:002007-06-23T19:57:25.100-06:00Understand Your Credit Scores and Win the Game<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEip7OQGNQkhHBjMh7q1KVgO2giv-mk8a_SNLMVrLKCWDc6JqYU7mTGF0HJ9M3BpRog4FBH3gNuHetZtek0Ppe76M_Q8EbTWI5HkpPPABP6xqpz9DD7OpY42TNbrJvBSnAY_y4ih/s1600-h/Gold+Seal.jpg"><img id="BLOGGER_PHOTO_ID_5079437432743847026" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEip7OQGNQkhHBjMh7q1KVgO2giv-mk8a_SNLMVrLKCWDc6JqYU7mTGF0HJ9M3BpRog4FBH3gNuHetZtek0Ppe76M_Q8EbTWI5HkpPPABP6xqpz9DD7OpY42TNbrJvBSnAY_y4ih/s320/Gold+Seal.jpg" border="0" /></a><br /><div><div>I cannot over stress the importance of monitoring your credit scores annually to ensure that you pay the lowest rates on home mortgages, auto loans, credit card debts, and safeguard yourself against identity theft. In times past credit scores where used most often to develop your risk profile in consideration for a loan and to set interest rates. Today, property insurance carriers and life insurance carriers consider credit scores when setting premiums and this trend is evolving into a variety of industries.<br /><br />A consumer’s credit history is archived by three service providers; Equifax, Experian, and Trans Union and their databases are often consolidated into a single report by third party credit agencies. The report is generally referred to as a credit report and it includes a credit score issued by each service provider. The scores range from 350-850 and are graded based on a set of criteria which includes payment history, account balances as compared to credit limits, amount of recently accumulated credit and inquires, among others factors.<br /><br />The following generally outlines how a variety of traits within your profile may affect your credit scores and risk profile: Length of Credit History 15%, Payment History 35%, Credit Balances Owed 30%, and Recently Obtained Credit 10%. According to Colorado based Advantaged Credit of Colorado an example of a consumer’s favorable profile would include two installment loans, three revolving accounts with balances, balances on revolving debt below 30% of the high credit limit, no collections, no public records (judgments or liens), no foreclosures, no late payments.<br /><br />My advice would be to obtain a copy of your credit report annually. This can be done by contacting each of the three credit service providers directly, or by accessing free online resources such as <a href="http://www.annualcreditreport.com/">http://www.annualcreditreport.com/</a> . Once you have obtained your report, review it carefully for discrepancies including inquires made against your credit files. Report inaccurate information directly to the associated credit service providers; keep in mind that the information retained by the three providers may vary and the data is often 30-60 days delayed, so some information such as account balances may not be accurate. The law provides consumer protection and false information must be removed by the reporting entity.<br /><br /><strong>Bottom Line:</strong> To safeguard yourself against identity theft or credit fraud review your credit report annually, immediately report any discrepancy; ask your property and casualty insurance agent if you are eligible for premium discounts for high credit scores. It is also important to make lenders aware that you understand that interest rates are a reflection of risk and that your good credit should be rewarded with the appropriate interest rates. If you have legitimate credit problems, seek the advice of a qualified credit consultant and develop a strategy to restore your credit profile. Beware of anyone who promises that they can remove negative information from your report for a fee, legitimate information cannot be removed and you will be disappointed.<br /><br /><strong>Resources:</strong> Here is the contact information for the three credit service providers: Equifax 1-800-685-1111 <a href="http://www.equifax.com/">http://www.equifax.com/</a>, Experian 1-888-397-3742 <a href="http://www.experian.com/">http://www.experian.com/</a>, and Trans Union 1-877-322-8228 <a href="http://www.transunion.com/">http://www.transunion.com/</a></div></div><div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com19tag:blogger.com,1999:blog-35326955.post-5223493485705498502007-01-19T10:19:00.000-07:002007-06-23T20:03:02.088-06:00Green is Becoming the Color of Real Estate<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgffu9Gx3Kur4WKiEvpA_wLlDLm9l5RBEPIMhf8yvGyY-wBxAMqS4b-AMbuac5pGLpXBSkXy_njOrP_87WQ6830n6QFEh7JLxvXFvxevOqMAocMVOS5wfIQONRkb5wH8BAI6Xzq/s1600-h/Townhome+Exterior.jpg"><img id="BLOGGER_PHOTO_ID_5079445361253475570" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgffu9Gx3Kur4WKiEvpA_wLlDLm9l5RBEPIMhf8yvGyY-wBxAMqS4b-AMbuac5pGLpXBSkXy_njOrP_87WQ6830n6QFEh7JLxvXFvxevOqMAocMVOS5wfIQONRkb5wH8BAI6Xzq/s200/Townhome+Exterior.jpg" border="0" /></a>The environmentally conscious are gaining allies in residential construction from the efforts of Built Green Colorado; which is administered by the Home Builders Association of Metro Denver with the support of the Governor's Office of Energy Management and Conservation, Colorado Association of Home Builders and E-Star Colorado among others. The designation "Built Green" is issued to builders who chose from a list of more that 200 building features in 22 categories; including materials, resource conservation, energy efficiency and conservation of resources. Builders must obtain a minimum number of points accumulated by the inclusion of building features in order to register their project as a Built Green Community.<br /><br />There are six primary benefits derived from the Built Green program: 1. Better Energy Efficiency. 2. Improved Durability and Reduced Maintenance. 3. Healthier Indoor Air. 4. Reduced Water Usage (this is critical in Douglas County). 5. Preservation of Natural Resources. 6. Pollution Reduction.<br /><br />Special financing known as "Green Mortgages," are available to finance the purchase of a new Built Green home as well as to cover the cost of improvements to an existing home. As a result of energy savings the total housing cost resulting from these mortgage products are lower than the cost without special financing. Not all lenders offer Green Mortgages, so it is important to identify a lender familiar with these programs. I have estimated that a client utilizing our Green Mortgage product can achieve a savings of $45 per month on a $250,000 purchase price. The homebuyer could purchase an additional $7,500 in home value for the same payment by using the Green Mortgage program.<br /><br />One example of a Built Green Community is the Highlands at Stonegate located at the southwest corner of C-470 and Jordan Road in Parker. The community is comprised of nearly 450 contemporary designed units containing a number of environmentally friendly features and building materials. Communities like the Highlands at Stonegate represent a tremendous value and appeal to buyers who recognize the benefits to the environment.<br /><br />Those old enough to remember the environmental friendly homes of the 1970's will recall seven foot tall solar panels on roof tops and walls manufactured from old car tires; this in no way is representative of the Built Green home of today. The majority of features are not noticeable to the untrained eye; engineered lumber, low-e windows, fiber-cement siding, energy efficient appliances, and xeri-scaping all contribute to a beautiful and efficient alternative to traditional construction materials.<br /><br />As consumers become more conscious about greenhouse gas emissions and the effect of global warming on our environment, many industries including the automobile industry and public utilities are seeking ways to satisfy the demands of the public for responsible management of our natural resources. Built Green Colorado has taken a key leadership role within the new homebuilder community in Colorado and residential communities throughout the state are seeing green.<div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com18tag:blogger.com,1999:blog-35326955.post-10708017365255331572007-01-15T14:41:00.000-07:002007-02-25T11:57:19.489-07:00Prepare Yourself To Obtain The Mortgage That Is Best For YouAs we welcome a new year filled with endless possibilities to achieve your financial goals and chart a course for long term financial health; one of the most important pillars to consider when laying your foundation is the role that real estate will play in accomplishing your objectives. If you are a homeowner, the task of managing your equity includes an occasional review of the structure of your mortgage to ensure that your loan addresses present needs and maximizes your opportunity to grow the equity in your home. If you are in the market for a new home mortgage, there are practical considerations to take into account when considering who you should trust as an advisor and ultimately which loan program is right for you. Here is a practical guide to ensure that you make smart financial decisions.<br /><br /><strong>Understand Your Time Horizon</strong><br /><br />The term of the loan product you chose should be directly tied to the length of time you intend to own the property. For example, one of my clients was working as a resident at CU Medical Center and there was little doubt that he would be relocating upon graduation from the program. The young couple came to me prepared to sign a 30 year mortgage as this is what their parents had recommended. The time horizon for my clients was a maximum of three years and a three year ARM was a more appropriate choice for them resulting in a significantly reduced interest rate and substantial interest savings. Simply stated, if you are planning to move in the next three to five years a thirty-year fixed mortgage would likely not provide you with the lowest possible costs.<br /><br /><strong>Understand Your Risk Tolerance</strong><br /><br />Everyone has a tolerance for risk and your ability to live with your mortgage and sleep well at night requires that you understand where you are on the risk scale. I have clients that are willing to trade the volatility of adjustable rates for the periodic advantage of a lower initial rate, the idea of a thirty-year mortgage is completely foreign to someone with this profile. By contrast, I have clients who would be best served having an adjustable rate mortgage, but could not bare the uncertainty of knowing what their payment will be for the next 30 years regardless of their true intention to remain in the property.<br /><br /><strong>Understand Your Credit Profile<br /></strong><br />Credit profile is comprised of two important factors, credit scores as reported by Trans Union, Equifax and Experian, and your capacity to repay the debt. Credit scores range from 360–850 and take into account a number of factors including payment history, account balances, age of accounts and inquiries. Generally speaking higher credit scores result in lower interest rates and better terms. Borrowers should strive to maintain credit scores of 620 or higher. Capacity is a measure of your ability to repay the debt as determined by your verifiable or stated debt to income ratio, typically not to exceed thirty-six percent of your gross income. This is a guideline and other factors such as high credit scores may allow you to stretch to fifty percent. To determine your debt to income ratio take your total monthly payments on your mortgages and consumer debt such as credit cards, car loans, etc. and divide the total into your gross monthly income.<br /><br /><strong>Understand How Technology Can Work For You</strong><br /><br />The internet has changed the way we receive and process information becoming a useful tool for researching a home mortgage. Consumers should be very careful when using the internet as more than a research tool when acquiring a mortgage; surveys indicate low satisfaction rates among consumers who obtain a mortgage over the internet. The most effective strategy combines the information gathering utility of the internet with the personal consultation of a competent mortgage professional. The most advanced mortgage lenders utilize their websites as a resource tool for their clients and provide personalized service to ensure client satisfaction.<br /><br />Another significant change has been the development of automated underwriting tools which allows lenders to weigh a borrower’s total risk profile against program guidelines making it easier for a larger range of applicants to qualify for a mortgage.<br /><br /><strong>Understand That Interest Rate Is a Function of Risk<br /></strong><br />The interest rate a lender charges a borrower is directly related to the risk associated in making a loan to that specific borrower. It is not reasonable to expect a lender to provide a borrower with poor credit scores the same interest rate as someone with an excellent payment history. Be realistic about your qualifications and if you believe you are not receiving the rate you deserve ask your lender to provide you with a complete explanation of how your interest rate has been determined. In addition to explaining your credit profile, your lender should also explain the adjustments made to the final interest rate.<br /><br /><strong>Understand Your Options Concerning Interest Rates and Loan Fees</strong><br /><br />A borrower who is shopping for the best mortgage rate can easily be seduced by low rate offers that are accompanied by low Annual Percentage Rates known as APR. Federal Law requires that APR be disclosed in addition to the actual interest rate when pricing a mortgage. Although disclosure of APR is intended to provide the borrower with enough information to make an informed decision; the reality is that APR may not be the best way to compare options when shopping for a mortgage and can mislead a borrower resulting in costly errors.<br /><br />Consider buying down the interest rate by paying points (equal to a percent of the loan amount) and explore a no costs loan, whereby the total costs of the loan are factored into the interest rate. In order to determine if either choice is right for you, know your time horizon and be clear about your objectives. A competent mortgage professional can walk you through the evaluation process and provide you with a written comparison of loan programs and pricing structures.<br /><br /><strong>Understand Potential Pitfalls and Protect Yourself</strong><br /><br />Prime loan programs also known as “A Paper” loans typically do not include a pre-payment penalty, by contrast the majority of sub-prime mortgage programs have associated prepayment penalties. In the event that the mortgage balance is dramatically reduced or paid in full prior to the end of the prepayment phase, a significant penalty can be charged to the borrower. A typical prepayment penalty is equal to six months interest on 80% of the principal balance for a period of one to five years. A prepayment penalty could in effect lock a borrower in to a loan program eliminating the option of refinancing in the near future.<br /><br />Beware of loan program with extremely low initial interest rates, not everyone will win the lottery and the day will come when the interest on the fully indexed rate will come due. Loan programs tied to monthly adjustable indexes and programs that allow a monthly payment less than the interest due will cause negative amortization, which results in an increasing loan balance and loss of equity.<br /><br /><strong>The Bottom Line<br /></strong><br />By understanding your unique qualifications, doing your homework and seeking the advice of a qualified mortgage lender, you can successfully navigate the waters and obtain the loan that is best for you.<div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com1tag:blogger.com,1999:blog-35326955.post-32354365019572464282007-01-12T12:42:00.000-07:002007-02-25T11:56:41.475-07:00Mortgage Underwriting Guidelines Will Tighten in 2007Colorado was identified as the number one State in the Country for foreclosures; however, the foreclosure problem exists in most major markets across the Country and the Office of Federal Housing Enterprise Oversight is suggesting immediate action. The agency has issued a directive to Fannie Mae and Freddie Mac to tighten underwriting practices for several nontraditional mortgages. Both Fannie Mae and Freddie Mac operate under a unique public/private partnership as a quasi-governmental agencies.<br /><br />The agencies are to follow the guidelines issued in October by federal bank regulators covering higher risk mortgages which allowed for deferred interest or principal payments such as MTA loans and other non-traditional mortgages.<br /><br />Bottom Line: As mortgage lenders and secondary market makers feel the pinch from increased foreclosures, most lenders will either tighten guideline or in some cases no longer offer certain types of mortgage programs. This change placing added importance for consumers to seek the advice of a qualified mortgage consultant.<div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com0tag:blogger.com,1999:blog-35326955.post-89189248003011002362007-01-07T17:53:00.000-07:002007-02-25T11:56:02.377-07:00Real Estate Community Regulate ThyselfIn 2006, the Rocky Mountain News has published an occasional series on Colorado’s foreclosure crisis. Chapters have shined an unfavorable spotlight on every aspect of the real estate industry; builders, Realtors, mortgage lenders and title companies. The common thread in every case is the lack of professionalism by the service providers who received commissions and fees establishing a fiduciary responsibility to the consumer. It is clear that in the great majority of foreclosure cases chronicled, the desire to close the transaction outweighed the concern for the best interest of the buyer and the real estate community as a whole.<br /><br />It is time for the collective real estate industry to practice self regulation or suffer under the weight of bureaucratic efforts to stem the tide of fraud which has resulted in our status as the number one state for foreclosures throughout much of 2006. The new mortgage broker licensing law will only result in the most egregious of offenders; those convicted of a felony within the past five years to be removed from the industry. There are loop holes in the legislation and as the law is <span class="blsp-spelling-corrected" id="SPELLING_ERROR_0">remiss</span> by not requiring education or experience standards, no guaranty exist that the registered mortgage broker is competent to work in the mortgage industry.<br /><br />The Colorado Mortgage Lenders Association (<span class="blsp-spelling-error" id="SPELLING_ERROR_1" onclick="BLOG_clickHandler(this)">CMLA</span>) has been a leader in self regulation among mortgage professionals. Mortgage bankers and brokers who carry the <span class="blsp-spelling-error" id="SPELLING_ERROR_2" onclick="BLOG_clickHandler(this)">CML</span> (Certified Mortgage Lender) credential have demonstrated through education and documented industry experience that they are qualified to consult consumers and originate mortgage loans. Mortgage originators that carry the <span class="blsp-spelling-error" id="SPELLING_ERROR_3" onclick="BLOG_clickHandler(this)">CML</span> designation also have agreed to a code of ethics. There are several steps that the mortgage industry can take to eliminate incompetent and unethical mortgage originators from the industry such as setting higher standards in hiring practices, completing independent background checks, requiring membership in an organization such as the <span class="blsp-spelling-error" id="SPELLING_ERROR_4" onclick="BLOG_clickHandler(this)">CMLA</span>, which provides a place for consumers to turn to file a complaint and force accountability.<br /><br />The real estate industry has done a far better job of self regulation through licensing, enforcement, and the promotion of the Realtor designation in association with various Boards of Realtor. Real estate agents who carry the Realtor designation agree to adhere to a code of ethics and consumers must understand that not all real estate agents are Realtors. The industry could still do more to protect the public and managing brokers should bare more of the responsibility when hiring agents to their firms. In addition to the established consumer safeguards, agents should police themselves by reporting unethical practices when dealing with unethical agents.<br /><br />Real estate appraisers often are subjected to tremendous pressure to “make the deal work,” when appraising a property under contract or as part of a refinance transaction. During my tenure as Chairman of the Colorado Real Estate Appraiser’s Board, I oversaw the discipline of many practitioners who were victim to the threat from mortgage lenders and real estate agents who pressured them to achieve a predetermined value for a subject property. Inflated appraisals are among the primary factors resulting in foreclosures in Colorado. As with the real estate industry the legislative structure and professional associations exist to address the most egregious offenders, the industry could benefit from more aggressive reporting of poor appraisal practices from real estate agents and mortgage lenders.<br /><br />Title companies and closing agents are on the front lines in witnessing the pressure placed upon the consumer when deceptive practices come to light at the closing table. When a borrower learns that the interest rate and closing cost promised are not being delivered the closing agent is left to manage the closing and protect the borrower. Unfortunately this does not always happen as many do not feel it is their role to advocate for the consumer. I believe if a title company or closing agent recognizes a pattern of unethical practices from a real estate agent or mortgage lender; they should act to protect the consumer and title insurer by reporting those involved to the Colorado Real Estate Commission and the employing brokers.<br /><br /><strong>The Bottom Line:</strong> New legislation aimed at regulation is only as effective as the enforcement, which in Colorado is limited by budgetary restrictions. If we act as an industry to raise the bar of professional practice and ethical behavior; we can accomplish the goal of cleaning up our industry in a responsible manner and elevate our professions in the eyes of those we seek to serve.<br /><br /><strong>Resources: </strong><br /><br />Colorado Mortgage Lenders <span class="blsp-spelling-corrected" id="SPELLING_ERROR_5">Association</span> - <a href="http://www.cmla.com/">http://www.cmla.com/</a><br />Colorado Department of Regulatory Agencies - <a href="http://www.dora.state.co.us/">http://www.dora.state.co.us/</a><div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com1tag:blogger.com,1999:blog-35326955.post-21350738221758185352006-12-29T11:17:00.000-07:002006-12-29T16:02:11.323-07:00Real Estate Today! 710 KNUS AM - In the NewsThis week the Real Estate Today radio broadcast recieved media exposure in the following:<br /><br /><strong>Rocky Mountatin News</strong> <a href="http://www.rockymountainnews.com/drmn/other_business/article/0,2777,DRMN_23916_5239112,00.html">http://www.rockymountainnews.com/drmn/other_business/article/0,2777,DRMN_23916_5239112,00.html</a>,<br /><br /><strong>Denver Post<br /></strong><a href="http://search.denverpost.com/sp?aff=3&keywords=James+Holmes+KNUS+">http://search.denverpost.com/sp?aff=3&keywords=James+Holmes+KNUS+</a><br /><br /><strong>Denver Business Journal (12-29-2006 Edition)</strong><br /><br />We appreciate the exposure as we continue to grow our radio community. Please tune into our show heard in Colorado on 710AM KNUS or on the internet at <a href="http://www.710knus.com">www.710knus.com</a> Saturday afternoons at 2:30 PM MST .<div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com2tag:blogger.com,1999:blog-35326955.post-62425275616121097542006-12-23T18:16:00.000-07:002007-02-25T11:54:11.856-07:00Notes and Comment from our Radio Broadcast 12-23-2006We had a great radio show today. I was joined in the studio by Bruce Deffler, Certified Relocation Specialist and Broker for Benchmark Property Advisors a Keller Williams affiliate. Here is an overview of the topics discussed and a few added comments.<br /><br /><strong>2006 Housing Slump Dampens Economy</strong><br /><br />Homebuilding declined by a rate of 18.7% in the third quarter, which translates to the largest cut in 15 years. This contributed to a 1.2% reduction on third quarter growth, the sharpest cut in 25 years. Economic growth slowed to an annual pace of 2% in the July – September quarter according to the commerce department. Although not a positive sign, not quite the 2.2% annual rate estimated a month ago.<br /><br />Economist estimate that the Gross Domestic Product (GDP = The value of goods and services produced within the United States) for the October – December timeframe with fall in the range of 1.7% – 2.5%, or slightly higher. Looking ahead the estimates are in the same range for the first quarter of 2007.<br /><br /><strong>Home Prices the Number One Business Story in 2006 among Business Editors</strong><br /><br />I am a big fan of Rob Reuteman, Business Editor for the Rocky Mountain News. Although I do not know him well, we are members of a business leadership group that meets quarterly – I know his work very well and he excellent at his craft. Reuteman was among a group of business editors asked to chose from a list of 35 business stories from 2006 and choose the top 10 where shared in Reuteman’s Saturday 12-23 column in the Rocky Mountain News.<br /><br />The number one story both at Reuteman’s judgment and that of his colleagues was the decline in home prices. The editor is exactly right when he characterizes the use of home equity by many homeowners as “the nation’s piggy bank.” Equally, his interpretation of our soft landing is also correct, Denver experienced double digit appreciation in the period between 1999 and 2000. He also reports that the expected drop in appreciation Is expected to be an additional 3.6% in 2007.<br /><br /><strong>Job Creation Continues in 2007<br /></strong><br />Given the announcement of new job creation in Colorado for Lockheed and the announcement this week that Rio Tinto Minerals will locate their division headquarters in Greenwood Village bodes well for the continuation of job creation in the year ahead. The division of London based Rio Tinto PLC, signed a lease for 104,500 square feet valued at 25 million dollars.<br /><br /><strong>Bottom Line:</strong> Both of these stories underscore my belief that we are in a tremendous buyer’s market and anyone thinking of buying a home or acquiring investment real estate will benefit from doing so in 2007. The conditions are perfect for the buyer: 1.) Rates are low. We are offering several programs with rates below 6.000%. 2.) Inventories are high both in the resale and new build market segments. 3.) Savvy investors recognize that very few people buy at the bottom of an investment market and the best place to buy is on the way down. The one caveat is that there are concrete reasons to believe that we are near the bottom and there is a recovery on the horizon. They then ride the wave back to the top.<br /><br /><strong>Should a non-selling or non-refinancing homeowner invest in an appraisal?<br /></strong><br />We welcomed a caller into our conversation today with a question concerning engaging an appraiser to determine property value. The caller does not plan to sell or refinance and was simply interested in knowing the value of their home. We have been advocating over the past few weeks that homeowners obtain a Comparative Market Analysis (CMA) from an experienced Realtor knowledgeable in their market. A real estate appraisal will cost $300 - $350 in most markets and the report carries a “use by date,” as the market data is subject to Uniform Appraisal Standard to be used for underwriting a mortgage loan – typically six months.<br /><br />The caller also asked about the value of obtaining a property inspection. Bruce advocated that a seller obtain a pre-sale inspection and address major items prior to placing a home on the market. In addition, we recommend that a seller look at their property in the same manner as a fix and flip investor. Seek advice from a Realtor when considering high return investments when improving a property prior to sale.<br /><br /><strong>Bottom Line:</strong> If you are a property owner interested in knowing the value of you property, contact Bruce Deffler or Bob Speaker by accessing our website at <a href="http://www.realestatetodayshow.com/">http://www.realestatetodayshow.com/</a> and click on the “Ask James” button request our free CMA at no obligation. Also feel free to visit <a href="http://www.colo2home.com/">http://www.colo2home.com/</a> to reach Bruce and Bob directly.<br /><br />Tune into our radio broadcast "Real Estate Today" on KNUS radio 710 AM in Colorado, or via live audio streamby logging onto <a href="http://www.710knus.com">www.710knus.com</a> and clicking "listen live."<div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com0tag:blogger.com,1999:blog-35326955.post-23788717050370289212006-12-20T17:31:00.000-07:002007-02-25T11:55:16.279-07:00LandAmerica Title Guilty of Poor JudgementOk, let me see if I have this correct. LandAmerica Financial Group, Inc. known as LandAmerica Title Insurance Company among other entities in Colorado is under investigation by the Colorado Insurance Commission in part resulting in a Cease and Desist Order on March 4, 2005 and a Stipulation for Entry of Final Agency Order on August 23, 2006. Rather than looking inward at business practices present in violation of RESPA Section 8, the company endeavors to pursue a smear campaign against Erin Toll who at the time served as Colorado Deputy Insurance Commissioner. Ms. Toll presently serves as Colorado Real Estate Division Director.<br /><br /><strong>See the Documents:</strong> <em>LandAmerica Title (Commonwealth Land Title Insurance Company, Lawyers Title Insurance Company, and Transnation Title Insurance Company)<br />Cease & Desist Order<br />Stipulation for Entry of Final Agency Order<br />You may contact LandAmerica at 866-526-3264 for more details on eligibility in relation to captive reinsurance.<br /></em>(Sources: <a href="http://www.dora.state.co.us/insurance/enforcement/2005/O05-155.pdf">http://www.dora.state.co.us/insurance/enforcement/2005/O05-155.pdf</a> and <a href="http://www.dora.state.co.us/insurance/enforcement/2007/O07-017.pdf">http://www.dora.state.co.us/insurance/enforcement/2007/O07-017.pdf</a> )<br /><br />This is troubling and calls in to question the integrity of a company who is entrusted with the funds of property owners and home buyers across Colorado. According to a story published in the December 20, 2006 edition of the Rocky Mountain News, the House Committee on Financial Services concluded in its 37 page report that LandAmerica Financial executives threatened to get “real stinky real quick” in referenced to an effort to discredit Toll and members of her family. The allegations were investigated and found to have no merit according to David Rivera, Colorado Insurance Commissioner.<br /><br /><strong>Read the full Report:</strong> <a href="http://financialservices.house.gov/media/pdf/12-18-06%20Land%20America.pdf">http://financialservices.house.gov/media/pdf/12-18-06%20Land%20America.pdf</a><br /><br />Our firm (Private Mortgage Banking Branch of Cherry Creek Mortgage, Inc.) had been approached numerous times during the period August 2004 and January 2005 by companies seeking a title reinsurance controlled business arrangement. I investigated one such offer carefully concluding that such an arrangement would be a violation of RESPA Section 8 and declined to participate.<br /><br /><strong>Bottom Line:</strong> I applaud the efforts of Erin Toll with support of the Colorado Division of Regulatory Agencies. She did an outstanding job in cleaning up illegal practices in the title industry and she aims to do the same in the appraisal industry. Rather than attack her personally, the collective real estate and mortgage industries should band together with our support.<div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com1tag:blogger.com,1999:blog-35326955.post-1166393700506805832006-12-17T15:13:00.000-07:002007-02-25T11:53:46.769-07:00Mortgage Insurance Premiums Tax Deductable for 2007The 109th Congress has granted an early holiday gift for new home buyers who purchase a home or take out a mortgage utilizing Mortgage Insurance in 2007. For transactions that fund between January 1, 2007 and December 31, 2007, borrowers will be able to deduct mortgage insurance premiums paid on their 2008 Federal Tax Return.<br /><br />Once signed by President Bush, this new law will have a dramatic effect on piggy back mortgages and may cause borrowers to delay closings scheduled for December 2006 in order to benefit from the law.<br /><br />A borrower taking out a $175,500 loan amount in the 25% tax bracket would pay an estimated premium of $86.50 per month or $1,038 per year. <strong>The estimated tax deduction would be $260.00 for 2007</strong>. (This is not intended to be tax advice, dollar amounts rounded up and assumes premium payments made 12 months in 2007).<br /><br /><strong>Bottom Line for Buyers:</strong> The full text of this Bill has not been released pending signature by the President. It appears that you will benefit from this law when purchasing or refinancing a home. Buyers would benefit by delaying the closing of a mortgage loan with mortgage insurance until January 1, 2007 or later. I would caution against delaying a closing prior to considering the full impact of this action, such as your contractual obligations, expiration dates for interest rate locks, moving schedules for both buyer and seller, cost savings from the deduction vs. expenses created by delaying your closing date, etc. Consumers should consult their lender or other real estate professional prior to altering a closing date. Borrowers should also consider that private mortgage insurance can be removed at the point when the property value and loan balance achieve an equity position of 20% or more. Higher rates on piggyback loans remain until they are paid in full.<br /><br /><strong>Bottom Line for Sellers:</strong> If your sale is scheduled to close in December 2006, be prepared for the buyer of your home to request an extension of the closing date. Based on the terms of your purchase agreement, you may not be required to grant such an extension.<br /><br /><strong>Bottom Line for Builders:</strong> If your sale is scheduled to close in December 2006, be prepared for the buyer of your home to request an extension of the closing date. Based on the terms of your purchase agreement, you may not be required to grant such an extension. The challenge for builders will be weighing your desire to add another transaction to the books for 2006 and making the best customer service gesture for your buyers. One strategy I recommend would be to calculate actual tax savings for the buyer and offer to credit an equal amount at closing in exchange for a closing in 2006. There is the possibility that the deduction could be extended by Congress beyond 2007 and the buyer would need to consider this possibility and the resulting loss of future deductions.<br /><br /><strong>Bottom Line for Lenders:</strong> Research all of the available information concerning this law and become knowledgeable on the impact on your borrowers and real estate agents. Be prepared to receive calls from your clients and be proactive by contacting any client that could be affected by the new law. I recommend that you develop tools that will allow you to accurately compare the use of loans with mortgage insurance as compared to combo (piggyback) loans. It is likely that many borrowers will benefit from refinancing to maximize the benefit of converting their adjustable rate mortgage to a fixed rate. I strongly caution that you do not provide specific tax advice and refer your clients to their tax advisor for clarification of how the law relates to their situation.<br /><br /><strong>Bottom Line for Mortgage Insurance Providers:</strong> Congratulations, the playing field has been temporarily leveled and you should see an increase in transactions utilizing mortgage insurance in 2007.<br /><br />According to an analysis conducted by Bankrate, there are four caveats to consider.<br /><br /><strong>Caveat No. 1:</strong> The tax deduction applies only to mortgages that are closed in 2007. If you have a loan with mortgage insurance in 2006, you won't be able to deduct the premiums in the 2007 tax year unless you refinance in 2007.<br /><br /><strong>Caveat No. 2:</strong> There are income limits. You get the full deduction if your adjusted gross income is $100,000 or less. The amount you can deduct phases out rapidly after that, and no mortgage insurance deduction is available if you make more than $110,000.<br /><br /><strong>Caveat No. 3:</strong> This is a one-year deal, and Congress would have to renew the deduction to make it apply for the 2008 tax year and beyond. Congress probably will extend the deduction, but you can't know for sure.<br /><br /><strong>Caveat No. 4:</strong> If you take the standard deduction instead of itemizing deductions, the new law makes no difference to you. "You need to have a mortgage of about $130,000 or so to even pay enough interest to hurdle the standard deduction," says Bob Walters, chief economist for Quicken Loans. In practice, he says, this means that the deduction is available to households with incomes between $50,000 and $100,000.<br /><br /><strong>Please visit <a href="http://www.privatemortgagebanking.net">http://www.privatemortgagebanking.net</a>and click "Free Reports" to download a complete summary including the full text of the Act and Section when it becomes available.</strong><br /><br />The Tax Relief and Health Care Act of 2006 Section 419:<br /><br />Section 6050H of the Internal Revenue Code of 1986 (relating to mortgage interest) is amended by adding at the end the following new subsection:<br /><br />In general.--<em>Premiums paid or accrued for qualified mortgage insurance by a taxpayer during the taxable year in connection with acquisition indebtedness with respect to a qualified residence of the taxpayer shall be treated for purposes of this section as interest which is qualified residence interest.</em><div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com6tag:blogger.com,1999:blog-35326955.post-1166289057280322612006-12-16T10:10:00.000-07:002007-02-25T11:47:38.152-07:00Can a Borrower Obtain a Mortgage While in Consumer Credit Counseling?If your goal is to purchase a home in 2007 and you have credit issues needing to be addressed now is the time to structure a “game plan” to ensure that your goal can be accomplished. When consulting with credit challenged clients we often engage with individuals who either are considering or are presently working with a Consumer Counseling Agency such as CCCS. The decision to enter into a modified payment agreement should be carefully considered to ensure that all of your goals can be met.<br /><br />How do mortgage loan underwriters view borrowers currently working with a credit counseling agency? This week I sought the opinions of two experts on the subject and here is an overview:<br /><br />I spoke with the Sr. Underwriter for Cherry Creek Mortgage Company to gain perspective from the mortgage loan underwriter’s point of view.<br /><br />FHA and VA Borrowers – If a borrower utilizes an FHA or VA loan product, the borrower is eligible to receive a mortgage if the following three requirements are met.<br /><br />1. The borrower has been in an approved consumer credit plan for a period of at least 12 months.<br />2. The borrower has a satisfactory “paid as agreed” record with the agency as set forth in the agreement.<br />3. The borrower has obtained written approval from the counseling agency to enter into a mortgage loan agreement.<br /><br />Conventional Borrowers – For borrowers seeking a Conventional loan such as a Fannie Mae or Freddie Mac program the situation is quite different. The guidelines for these programs require the underwriter to view a consumer credit plan the same as a Chapter 13 Bankruptcy plan, which must be fully paid prior to entering into a mortgage loan agreement.<br /><br />I spoke with a program specialist with Consumer Credit Counseling Services which is a HUD approved counseling agency and ask the question, “what are the factors that effect the decision to allow a borrower to enter into a mortgage loan agreement?”<br /><br />There are a number of consumer driven factors which include the following:<br /><br />1. Is the agreement with the existing creditors for full or partial payment of the credit balances?<br />2. Can the borrower’s adjusted debt to income ratio support the addition of a mortgage payment?<br />3. Has the borrower made the consumer credit plan payments as agreed?<br /><br />Additional factors to consider before entering into a consumer credit plan:<br /><br />1. If the consumer budget results in a plan for partial payments to creditors, many report “payments not as agreed” on the consumer’s credit report.<br />2. The consumer’s present credit report will impact Alt A or Sub-Prime underwriting decisions.<br />3. After the payment plan has been paid as agreed, the reporting agencies will remove all references to consumer credit counseling, etc.<br /><br />The Bottom Line: Whether you are currently enrolled in a consumer credit plan or considering doing so, your dream on purchasing a home is still a possibility. I recommend scheduling a private consultation with a knowledgeable mortgage professional in order to make an informed decision. I also recommend avoiding the tendency to be steered into a sub-prime mortgage, which usually calls for higher rates, pre-payment penalties, and less favorable terms overall than the options noted above.<div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com0tag:blogger.com,1999:blog-35326955.post-1165690215291149472006-12-09T11:49:00.000-07:002007-02-25T11:47:03.651-07:00Missing Your Fortune?I have consulted with hundreds of homeowners and real estate investors during my twenty years in the mortgage banking industry. It is disputable that a personal residence is the largest appreciating asset for the majority of Americans and as a result the foundation of their financial security. As such the appreciation in your homes value coupled with a “proactive” strategy for managing the associated debt may result in the accumulation of wealth and a hedge against volatility in the financial markets. The idea of securing a 30 year fixed interest rate mortgage at the time of purchase and simply making the monthly payments is no longer the best means of creating financial security – you may in effect be missing your fortune.<br /><br />In recent years a number of new mortgage products have been introduced to the marketplace including interest only loans and loans tied to a variety of indexes with varied rates and repayment terms. In my practice, I routinely have more than one potential solution for addressing our client’s short and long term needs. So where should you begin? I encourage all of my clients to participate in an annual mortgage review, consider this an annual physical for your home mortgage. Through this process we are able to measure our clients’ current interest rate against the market, determine what life changes have occurred that might affect the type of loan presently in place and make recommendations to ensure that we remain on course.<br /><br />Technology has greatly impacted the mortgage banking industry by providing a number of tools to better allow professional mortgage bankers to more effectively manage mortgages over time. I utilize a number of tools to monitor interest rates relative to my clients present rate, hedge interest trends for clients with adjustable rates, determine when to convert an adjustable rate to a fixed rate mortgage and to monitor appreciation in property value to identify opportunities to put their equity to work. This method of value added service is known as professional mortgage management, which I created elevate the entire process of financing your home to more meaningful level.<br /><br />To ensure that you have the most cost effective mortgage program and one that maximizes your ability to create long-term wealth consult a professional mortgage banker; preferably one who carries the CML designation from the Colorado Association of Mortgage Bankers. Utilizing a CML designated banker will insure that you are dealing with someone who is committed to continuing education and who is held to the highest professional standards in the industry.<div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com0tag:blogger.com,1999:blog-35326955.post-1165689986525890892006-12-09T11:34:00.000-07:002007-02-25T11:46:33.387-07:00Reverse Mortgages: Financing the Golden YearsUntil recently, seniors 62 years of age and older have not had the best choices when it came to getting cash from their homes. Traditional home loans only offered the option of either selling one’s house or borrowing against its equity.<br /><br />With reverse mortgages coming on the scene, seniors now have some additional cash-flow alternatives. This type of loan allows mature borrowers to convert their home equity into tax-free income without leaving their current home or making mortgage payments - and they do not need an existing income to qualify.<br /><br /><strong>How a Reverse Mortgage Works</strong><br /><br />Reverse mortgages are probably best understood when compared side-by-side with traditional home mortgages, otherwise known as "forward" mortgages. The following table shows the differences between the two:<br /><br /><strong>FORWARD MORTGAGE</strong><br /><br />Uses income to pay debt<br />Monthly mortgage payments<br />Falling debt, rising equity<br /><br /><strong>REVERSE MORTGAGE</strong><br /><br />Uses home equity to get cash or credit<br />No payments; debt is due when the borrower(s) pass away or relocate.<br />Rising debt, falling equity<br /><br />Both loans incur debt against your home, and both affect equity, but they do so in different ways. Traditional home mortgages require making monthly payments to a lender. With a Reverse Mortgage, payments are made to you.<br /><br /><strong>What a Reverse Mortgage Involves</strong><br /><br />Here are some important points to know when considering a reverse mortgage:<br /><br />Eligibility: To qualify for a reverse mortgage, you must be at least 62 years of age. All owners who are on the title deed must meet this age requirement. You must also have paid off all, or most, of your home mortgage. Lastly, the home you reside in must remain your principal place of residence.<br /><br />Mandatory Counsel: In order to ensure that homeowners are fully aware of the financial ramifications of obtaining a reverse mortgage, you must undergo counseling with an unbiased third party before completing a loan. HUD and AARP oversee a network of counselors who can provide this service, and it should be offered for either a nominal fee or at no charge.<br /><br />Tax-Free Income: One of the advantages of a reverse mortgage is that the money you receive will not be taxed. The amount you’ll obtain depends on several factors including the plan you select, the type of cash advances you choose, your age, and the value of your home. Typically, the older you are the larger the loan, as you will have more equity in the house.<br /><br />Cost: The cost of a reverse mortgage varies considerably from one type to the next. However, you can typically use the money you receive to offset the loan fees. The costs will be added to the loan balance and must be repaid with interest once the loan terminates.<br /><br />Repayment: Reverse mortgages do not require any payment as long as the borrower(s) remain in the home. Should the borrower(s) pass away, sell the home, or permanently relocate, then the loan would be due in full, along with interest and additional costs. If two borrowers are on the loan and one dies, the loan would not be due since one of them still occupies the home.<br /><br />Home Equity Conversion Mortgage - The Federally Insured Loan<br />The most common type of reverse mortgage is the Home Equity Conversion Mortgage, otherwise known as a HECM mortgage. This is the only reverse mortgage program that’s federally insured and backed by the U. S. Department of Housing and Urban Development (HUD). This type of reverse mortgage is popular for a few reasons:<br /><br />• Ability to choose your own interest rate.<br />You can select one that changes annually or one that changes every month.<br /><br />• You have several payment options.<br />You may receive monthly loan advances for a fixed term or for as long as you live in the home. You may also choose to receive a line of credit or combine monthly loan advances with a line of credit.<br /><br />• The loan can be used for any purpose.<br />With a HECM, you don't have to designate the loan to a specific use; you can apply the funds to anything you choose.<br /><br />• Protection.<br />This is one of the most attractive features of a HECM. This plan protects you by guaranteeing continued loan advances even if your lender defaults.<br /><br /><strong>Sell or Stay?</strong><br /><br />The main reason people choose a reverse mortgage is to gain financial independence and maintain an adequate standard of living without leaving their current home. The best way to decide if a reverse mortgage is right for you is to compare it to the other option of selling your house. To do this, ask yourself these three questions:<br /><br />1. How much cash can I get by selling my home?<br />2. How much will it cost to buy or rent a new place?<br />3. Is it worth my moving now, or do I prefer to do something else with the<br />money?<br /><br />Perhaps you'll confirm what you knew all along, where you now live is the best place to be.<br /><br />We have utilized Reverse Mortgages to address very specific goals of our clients. One such case<div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com0tag:blogger.com,1999:blog-35326955.post-1164837716710800802006-11-29T14:57:00.000-07:002007-02-25T11:45:34.424-07:00Understanding Interest Rate and APR is CriticalIt is vital to understand the differnce between "Interest Rate" and "APR" when shopping for a home loan. We partner with CNBC contributor Barry Habib who offers excellent guidance to assist you in understanding these terms.<br /><br />A borrower who is shopping for the best mortgage rate can easily be seduced by low rate offers that are accompanied by low Annual Percentage Rates (APR). Federal Law requires that APR be disclosed along side the actual interest rate…this is in order to help borrowers make a more informed decision on their mortgage. The truth is that APR is a very poor way to comparison shop for a mortgage and can cause borrowers to make costly wrong decisions.<br /><br />APR was created in order to provide a way for borrowers to account for costs associated with the mortgage. This sounds good because it may not be very easy to choose between a loan with a lower rate and higher fees or a loan at a higher rate and low fees. The problem is that the APR calculation makes some very bad assumptions. First, APR assumes zero inflation and that the value or buying power of a Dollar today will be exactly equal to the value of a Dollar 10, 20 even 30 years from now. Next, the APR calculation assumes that the mortgage will never be prepaid or paid off. That means no refinancing or selling the home…highly unlikely since the average life of a home mortgage loan is less than four years. Just think, about your own clients. Is it not rare to see the same loan in place for even 5-years…forget 30-years. The APR calculation does not consider the value of the money used for fees. So if you spent thousands of dollars in points or fees to get a lower rate, the APR calculation does not give any value to the money if it were not spent on closing costs. Finally, APR does not take tax consequences into consideration. This can be significant since higher fees on the mortgage may not be deductible while the higher interest rate typically is deductible. Moreover, APR can be manipulated, making it totally worthless.<br /><br />So how does APR work anyway? I like to explain it to my clients by using triangles. I often draw two sets of triangle for my clients to illustrate the difference between Interest Rate and APR. The reason for the triangle is because there are 3 sources of input…"Interest Rate", "Mortgage Amount" and "Monthly Payment". If you know any two of the three, you can calculate the third. See the triangle below.<br /><br />Since any two of the three variables allows you to calculate the third, a $911 monthly payment for a $150,000 mortgage calculates to an interest rate of 6.125%. But the APR calculation uses different information. The APR calculation only keeps the "Monthly Payment" information the same. Instead of the "Mortgage Amount", APR uses "Amount Financed". This is the "Amount Financed" information on the Truth in Lending statement. Amount Financed takes into consideration the fees that are lender imposed. This includes application fees, points, commitment fees…and interim or per diem interest. So, Amount Financed is the mortgage amount less any lender fees, points and interim interest. The more fees, the lower the Amount Financed. The monthly payment is then calculated as a product of the Amount Financed to give you the "Annual Percentage Rate" or "APR". So the lower the "Amount Financed", the higher the "APR" is. Amount Financed can be manipulated by assuming a closing on the last day instead of the first day of the month. That would increase the Amount Financed and decrease the APR.<br /><br />Here is a real example on a $150,000 fixed rate 30-year mortgage with zero points: Lender "A" (triangle above) is offering a great low rate of 5.875% and lender "B" (triangle below) is offering a higher rate of 6.125%.<br /><br />A closer look shows that Lender "A" is charging $3,000 more in fees than Lender "B". How do you compare? If you look at APR, Lender "A" (5.875% with $3,000 higher fees) has an APR of 6.149%. Lender "B" (6.125% but a $3,000 savings in fees) has an APR of 6.211%. So according the APR, Lender A is a better deal even though the fees are $3,000 higher…this is exactly what these high fee lenders are hoping you look at.<br /><br />Let's look at the real story. The payment difference between the two is $24 per month. So is it worth paying $3,000 in fees to Lender A in order to save $24 per month? Hardly. It will take 10.5 years for a borrower to just to get back their investment! A bad choice when you consider that mortgage loans typically are retired within four years. To make the decision to go with Lender "A" even worse, if that's possible, borrowers rarely take the value of today's dollars into account. Rather than giving Lender "A" the windfall of your hard earned $3,000, you should give it to yourself. Reduce the loan balance on your mortgage by the fees you are saving. In the example above that would reduce the loan from $150,000 to $147,000. This makes the payment difference just $6 per month instead of $24 per month! The true time to break even is really 500 months (more than 40-years!). So it is impossible to benefit from the higher fee program from Lender "A" because the maximum period on the loan is 30 years or 360 months. One more thing…when you calculate your tax deduction on the payment difference, it makes even more sense to avoid paying higher non deductible fees. The obvious correct choice is to go with Lender "B" even though the APR is lower with Lender "A".<br /><br />Bottom line - You should forget APR and think twice about those advertised low rates when they are accompanied by higher fees. Use the above illustrations to help you determine the true cost of a loan being offered to you.<div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com0tag:blogger.com,1999:blog-35326955.post-1164235689007542052006-11-22T15:47:00.000-07:002007-02-25T11:44:53.180-07:00Is the Arapahoe County Treasurer-Elect Pulling the Wool?Is it just me or is the newly elected Arapahoe County Treasurer trying to pull the wool over our eyes? Perhaps he already has. Doug Milliken won the job of county treasurer by approximately 2000 votes; running on a platform which touted his background as a finance expert and promising to “educate residents to make wise decisions to avoid foreclosure” and “Empower you about ways to retrieve a home out of foreclosure” Both of these statements appear on his website www.dougmilliken.com as goals and objectives.<br /><br />Although honorable, I am not sure that Mr. Milliken understands his subject and therefore certain aspects of his new job. As reported in both Denver newspapers, Mr. Milliken himself is facing a foreclosure sale of his personal residence on January 3rd. In my role as a mortgage banker, I speak to individuals facing foreclosure frequently and I am not judging Mr. Milliken or the circumstances he is facing in his personal life. I am calling into question his ability to serve the citizens in Arapahoe County due to his lack of understanding of the foreclosure process and his competence to fulfill his role as treasurer.<br /><br />In response to questions that have been raised by the media and Bernie Ciazza, the outgoing treasurer, Mr. Milliken has made two statements that are incorrect and are either honest mistakes concerning the facts, which underscores my point, or intentionally false, which of coarse should be of concern to the citizens of Arapahoe County.<br /><br />First, Mr. Milliken claims that he was unaware that his home was in foreclosure. This is highly unlikely as the foreclosure process is mandated by statute and certain notifications must be made to the homeowner as the process moves toward resolution. Beyond the formal foreclosure process, homeowners are inundated with unsolicited offers from mortgage brokers, Realtors, and investors once the Notice of Election and Demand is filed with the County and the foreclosure is thereby made public. It is hard to accept that any homeowner could be in default for months and not be aware of the collection efforts being undertaken from the mortgage lender.<br /><br />Secondly, Mr. Milliken claims that his mortgage insurance company is resolving past due payments on his behalf, which is not the purpose of mortgage insurance and further illustrates his lack of understanding. Mortgage insurance is placed on loans that exceed a certain loan to value ratio and the policy protects that lender in the event of default, not the homeowner. Further these policies do not make monthly mortgage payments on the homeowners’ behalf, they cover the shortfall for the lender as a result of a default sale of the property.<br /><br />We should expect and deserve accountability from our public officials. Mr. Milliken has not demonstrated sound judgment or accountability in addressing what many consider to be legitimate concerns about his capacity to serve.<div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com0tag:blogger.com,1999:blog-35326955.post-1163869905147628172006-11-18T10:10:00.000-07:002007-02-25T11:43:20.259-07:00Should You Leverage The Equity In Your Home or Pay Off Your Mortgage Rapidly?There is a great debate within the inner-mortgage circles these days. Should we, as loan professionals, encourage clients to borrow as much money as possible? Or would consumers benefit more if we helped them to understand the advantages of 15-year amortization schedules and pre-paying principal? Let's examine the pros and cons of both strategies.<br /><br />Leveraging Your Property. In order to understand why you'd want to borrow as much as possible for your home purchase, you must first grasp the concept that equity has a zero rate of return. Here's an example:<br /><br />If Consumer "A" buys a home for $300,000, and puts 20% down, then they have $60,000 in equity. Over the next 5 years, the property appreciates $100,000 in value. Consumer "A" now has $160,000 in equity.<br /><br />Consumer "B" buys a home for $300,000, and puts no money down. At the end of 5 years, that same home is now worth $400,000. Consumer "B" has $100,000 in equity, which is the same appreciation as Consumer "A", a net $100,000.<br /><br />As you can see, your down payment has nothing to do with your rate of return. What becomes important is how you choose to manage the $60,000 you didn't use as a down payment. If you use it for frivolous activities, such as buying toys or going to Las Vegas, it would be more prudent for you to use that money as a down payment. Especially since this will enable you to obtain a lower interest rate.<br /><br />However, if you were to invest the $60,000 in a vehicle that can out-earn the cost of that debt, then this could be a formula for success. This is why some lending professionals suggest putting as little down as you possibly can, maximizing your tax write-off, and investing the rest. This principle has been applied for many years in the life insurance game. The old saying goes, "Buy term and invest the rest." The key component is taking the money you would have used as a down payment and creating an asset accumulation account. This account should earn a significant enough rate of return to enable you to pay your mortgage off entirely and achieve the ultimate goal of being debt-free.<br /><br />Paying Your Home Down Rapidly. There are very few times over the course of my career that I have seen a client with zero debt and no financial difficulties. Choosing to pay off all of your debt can reduce stress and help you to gain freedom of cash flow for investment opportunities. A 15-year mortgage or a bi-weekly payment strategy provides structure. It can also put you on track to have your mortgage paid off within a set timeframe. Simply put, it contains built-in discipline.<br /><br />It's important; however, to understand that regardless of how rapidly you pay your home off, you're not getting any greater rate of return on your investment than if you paid it off slowly.<br /><br />So how does one determine which scenario is best? The choice depends entirely upon the individual. Savvy consumers who are disciplined, and are comfortable taking chances from an investment perspective, would do well with the first scenario. Over the course of time, it's been proven that your rate of return over the long-haul will be far greater than the rate you'd pay for a mortgage in today's rate environment. It's important to seek the advice of a skilled investment advisor to ensure success with this strategy.<br /><br />The second scenario is best for those who have a difficult time managing their money or who'll sleep easier at night knowing they have a plan in place to pay their loan off more rapidly. Be sure that your budget can handle accelerated payments. When consumers "bite off more than they can chew" with a 15-year mortgage, they frequently end up having to refinance back into a 30-year schedule.<br /><br />If you find this subject intriguing and would like to know more, I recommend that you read a book titled, Missed Fortune 101, by Douglas Andrew. It's an outstanding read that is very simplistic and goes into far greater detail than I can cover in this column. Douglas is a financial planner who advises safe-structured investments such as whole life policies and tax-free fixed income instruments.<br /><br />To ensure that you have the most cost effective mortgage program and one that maximizes your ability to create long-term wealth, consult a professional mortgage banker; preferably one who carries the CML designation from the Colorado Mortgage Lenders Association. Utilizing a CML designated banker will ensure that you are being consulted by a professional committed to continuing education and who is held to the highest professional standards in the industry.<div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com0tag:blogger.com,1999:blog-35326955.post-1163691404339201082006-11-16T08:36:00.000-07:002007-02-25T11:42:41.877-07:00Renters Have Much to Gain by Pursuing Home OwnershipBuying a home vs. renting is a big decision that takes careful consideration, as most mortgage consultants will agree. But the benefits of home ownership usually out weigh the potential challenges to making this part of the American dream a reality for renters. Purchasing a home is the first stage in creating long-term wealth and financial security; it is an achievement that offers a sense of pride and financial stability.<br /><br />The numbers are staggering when you consider the following: If you are paying $1,000 per month for an apartment over the next five years you will pay your landlord $60,000 and if you are renting a house, you may be paying much more than that each month. Either way, you gain no equity by paying out this monthly housing expense and you certainly won’t benefit as the property increases in value.<br /><br />However, if you were to purchase your own home or condominium, you would be well on your way toward building equity within that same five-year period. By choosing a fixed-rate loan program, you will have the comfort of knowing that your monthly mortgage payment will never go up. In fact, you may have the option of refinancing to a lower interest rate at some point in the future should interest rates drop, and this would cause your monthly mortgage payment to go down.<br /><br />In addition to building equity, there are tax advantages that come into play with home ownership. Depending on your tax bracket, owning a home is often less expensive than renting after taxes. Interest payments on a mortgage below $1 million are tax-deductible, and your mortgage consultant should help you evaluate the tax advantages of various loan scenarios, and share this information with your tax consultant to create the financing strategy that works best for you.<br /><br />To find the loan program that is right for you, your mortgage consultant will need to evaluate your monthly household income, current assets and savings, as well as any monthly obligations you may have for credit card payments, car payments, child support, etc. These prequalification factors, along with the report of your credit score, will determine how much house you can afford and which mortgage options can be made available to you. It is also important to let your mortgage consultant know what your future goals are, because this will help narrow down which loan option is the best fit for your long-term needs.<br /><br />There are many different types of loan programs available, including “low” and “no” down payment mortgage programs. These types of programs require the borrower to provide from zero to 3 percent of the purchase price as down payment. FHA lenders require that the mortgage payment, including principal, interest, taxes and insurance (PITI) should not exceed 31 percent of your gross income, and the PITI plus other long-term debt (car payments, etc.) should not exceed 43 percent of your gross income.<br /><br />Regardless if you are renting or buying a home, housing expenses are a significant portion of your monthly budget. If you are renting and feel that “home” is more than just a place to hang your hat, think about the advantages of purchasing a home of your own.<div class="blogger-post-footer">James Holmes is the Host of the Real Estate Today radio show broadcast on 710KNUS AM. Visit the broadcast website at www.RealEstateTodayShow.com</div>James A. Holmes, Inspired Capitalisthttp://www.blogger.com/profile/11399013613835626791noreply@blogger.com0