Liana's HomeWISE Blog

Last Chance for First Time & Move up Buyer Tax Credit

lianapomeroy — Tue, 23 Feb 2010 22:25:45 +0000

Have you been waiting around for that perfect house? Think the government will keep extending some version of the homebuyer tax credit? Think again! Last week the Fed announced they will be weaning us off the real estate stimulus package starting immediately. This means two things for you if you’re wanting to buy a new home: 1) you need to get yourself under contract by April 30th of this year and close by June 30th if you want to take advantage of either the First Time Buyer Tax Credit or the so-called Moveup Buyer Tax Credit (up to $8,000 or $6,500 respectively) and 2) rates are on the rise and could be as high as 6% within the next month or two according to many market analysts.

We’ve gotten so used to government subsidies the past couple of years, it might come as a shock to some that time is truly running out to take advantage of these stimulus packages, but it is TIME to find your new home! Give me a call if you need any help: 303-601-5197 or visit my website: www.homeWISEdenver.com.

On the Fence About Buying or Selling?

lianapomeroy — Thu, 05 Feb 2009 02:50:08 +0000

It’s a turbulent time in the real estate markets and many of us are confused about whether or not we should be buying or selling a home right now. We want to make sure we “hit bottom” and get the “best deal” if we’re in the market to buy and at the same time, if we’re selling a home and looking to buy a new one, we’re afraid we might lose money if we sell now with all the “doom and gloom” in the media about the real estate market. Before over reacting and losing out on what might be one of the best opportunities in YEARS to buy a new home, watch this video from the Today Show that dispels 5 Common Myths About Real Estate: http://www.msnbc.msn.com/id/21134540/vp/28854109#28854109

I didn’t have anything to do with the making of this particular interview but I wholeheartedly agree with it. Don’t let the media hype mislead you into missing out. Watch the video and if you’d like to find out more about how you can take advantage of one of the best times in HISTORY to buy or sell a home, I am happy to help in any way I can.

Liana Pomeroy is a Certified Mortgage Planning Specialist with Cherry Creek Mortgage and part of the HomeWISE Team at Cherry Creek. The focus of The HomeWISE Team is to help our clients build and maintain their Wealth through Real Estate and to provide Investment Strategies and Education for the Mortgage industry. Contact Liana today at 303-601-5197 or visit www.DenverHomeWISE.com.

Should I Wait to Refinance?

lianapomeroy — Thu, 29 Jan 2009 20:31:26 +0000

The big question on everyone’s minds right now is – IF I wait to refinance, can I get an EVEN LOWER rate? And the answer is – maybe – but you could also get a higher rate. While it’s possible we may see rates come down to 4.5% over the next couple months, we may also see them plateau right about where they’ve been – hovering right around 5% or a tiny bit lower – or even start climbing again to the mid 5s. If it makes sense for you to refinance at 5% – i.e. you save enough that the cost of the refinance is recouped within 12 – 18 months, then I would recommend at least getting your refinance in process. Then you can take advantage of the amazing low rates we already have and if rates dip even further between now and when you want to close, even better!

Like with the stock market – and we’ve seen what can happen there! – finding bottom is impossible! We don’t know we’re there until it’s passed us by. So if it makes sense for you to take advantage of some of the lowest rates in history, I would recommend getting in touch with your lender as soon as possible to ensure you don’t miss the opportunity!

Liana Pomeroy is a Certified Mortgage Planning Specialist™ with Cherry Creek Mortgage and part of the HomeWISE Team at Cherry Creek. The focus of The HomeWISE Team is to help our clients build and maintain their Wealth through Real Estate and to provide Investment Strategies and Education for the Mortgage industry. Contact Liana today at 303-601-5197 or visit www.DenverHomeWise.com.

The Real Estate Total Eclipse! What an opportunity!

lianapomeroy — Sat, 17 Jan 2009 17:00:16 +0000

To view a total solar eclipse is a rare and beautiful thing, and it requires a certain amount of preparation because you can’t just stare blankly into the sun! Many of us were not prepared for the collapse of the financial markets and it has left some of us still blinded. But this too is a rare and beautiful moment for those buyers who are ready to take advantage of this unique moment in history.

Benefits of the Real Estate Total Eclipse:

1) The first time buyer tax credit of up to $7,500.

2) 30 year fixed rates at 40 year lows under 5%!

3) A stable real estate market in Metro Denver.

In every other moment in the history of the real estate market when rates are down, demand for real estate goes up and prices begin to climb. This is a rare and beautiful moment where values have declined and rates are also low. The combination of the two gives today’s buyer more purchasing power! If you can buy now, you’ll be locking into some of the best values in Denver since the early to mid 1990’s.

Self Employed? Worried you can’t get a mortgage?

lianapomeroy — Fri, 16 Jan 2009 18:22:26 +0000

One of the greatest tragedies in today’s mortgage marketplace is that good people are having challenges getting mortgage financing. I’m not talking about sub prime loans. I’m talking about those of you (and I know a lot of you!) who have fabulous FICO/credit scores over 750, plenty of assets in the bank (those of you who went to cash early in 2008), and enough cashflow to reasonably pay your bills but who don’t take home a paycheck every two weeks and don’t get a W2. You know who you are – the self employed! And you might have tried to get a mortgage in the past year or you might have heard all the hype in the media about how hard it is to get a mortgage and not even bothered.

Either way, this new mortgage climate is definitely making life more challenging - but not impossible with proper planning! For some of you, your tax returns are so complicated and thick, you just never bothered to go “full doc” before. When stated income loans were only slightly more expensive than the alternative, it was just easier to pay the extra eighth of a point to avoid the hassle. Now you hear all this doom and gloom in the news and figure there’s no way you could possibly refinance or buy a new home. You could be wrong. If you’re self employed and can still show that you do, in fact, make enough money to pay your bills based on the formula we mortgage lenders use – generally if your total monthly expenses don’t exceed 50% of your gross adjusted (reported) income – then it’s quite likely you CAN qualify for a new mortgage.

For those of you who have played the game of writing off every conceivable deduction and made your $150,000 per year business look like a $40,000 per year business, there is a little more work we’ll need to do before you can qualify for a new mortgage. For you, getting a mortgage will now take some planning and some conversations between your mortgage lender and your CPA. This is a new game, folks. Now if you’re planning to buy a new home in the next 12 to 24 months, you might want to consult with your lender BEFORE you make that appointment to sit down with your CPA to do your 2008 returns. Now would be a really good time to do that. And it’s worth filing an extension if you can’t get it together before the deadlines.

Liana Pomeroy is a Certified Mortgage Planning Specialist with Cherry Creek Mortgage and part of the HomeWISE Team. The focus of the HomeWISE Team is to help our clients build and maintain their Wealth through real estate and to provide Investment Strategies and Education for the mortgage industry. Contact Liana today at 303-601-5197 or go to www.DenverHomeWise.com to find out more.

Is Now the Right Time to Refinance?

lianapomeroy — Mon, 12 Jan 2009 22:52:07 +0000

The Fed announced they’ll be buying up as much as $500 billion in morgage backed securities over the next few months, the Fed Funds Rate is hovering in a range between zero and 1 percent making Prime Rate somewhere around 3%, Obama’s about to take office and you’re wondering: “Hmmmm, SHOULD I refinance now or should I wait?” We don’t have a crystal ball, but if you have a mortgage anywhere over 5.75%, you might want to be ready. Here are some general rules of the road for the new lending climate:

Know the NEW Rules: It used to be that if you could fog a mirror, you could get a loan. The rules have changed dramatically over the past year and a half and the loan you got before may no longer be available. If your current loan was a low or no money down mortgage and your home hasn’t appreciated much (or worse – lost value), this will impact both the new rate you can get and even whether or not you can get a new loan. Working with someone who can help you understand the new rules and how they impact you is now more important than ever.

Know your target interest rate: A target rate helps you determine when it is the right time to refinance. Your target rate is a benchmark rate that establishes your minimum monthly payment savings necessary to make up the cost of a refinance within one to two years. Usually it starts to make sense considering a refinance when market interest rates are 1-1.25% lower than your current rate. Once you determine your target rate, your lender will make sure you don’t miss it when rates drop.

Know the value of your home: Some areas of the Front Range have seen their home values decline. You need to get a really good idea of what the accurate value of your home is to see if you are eligible for a refinance. You may think using a website like Zillow to find out the value of your home is a good start, but Zillow is not a reliable source of accurate information when assessing your home’s value. Work with a good, local real estate or mortgage professional in order to help you determine the value of your home because they are going to be the most familiar with local real estate trends in your area.

Liana Pomeroy is a Certified Mortgage Planning Specialist with Cherry Creek Mortgage and part of the HomeWISE Team. The focus of the HomeWISE Team is to help their clients build and maintain their Wealth through Real Estate and to provide Investment Strategies and Education for the Mortgage industry. Contact Liana today at 303-601-5197or go to www.DenverHomeWise.com or www.homeWISEdenver.com to find out more.

Mortgage rates are at an all time low!

lianapomeroy — Sun, 11 Jan 2009 18:56:54 +0000

A few years ago no one would have believed what is happening in the mortgage business right now! The Federal government has announced it will buy up to $500 billion in mortgage backed securities over the next 6 months and this is forcing conforming fixed rate loans down to their lowest EVER! Even in the outrageous flurry that was the refinance boom of 2001, 2002 and part of 2003, we never saw a 4.5% 30 year fixed! These are unprecedented times!

Of course, it is now much more challenging to qualify for a loan and these rates are only for conforming loan amounts up to $417,000 and you must qualify – i.e. no more stating a made up income or not bothering to show income at all. In order to get a loan you must have a documentable income, decent credit and typically at least a little money in the bank.

What is even more unprecedented is that typically when rates are low, home prices soar. That’s not happening right now. What’s happening right now is about as common as a solar eclipse: we have rates stable under 5% AND home prices stable to bargain basement depending on the neighborhood! What a better time to pick up more real estate – whether you’re a first time buyer or a savvy investor!

Of course, as I said, you must be able to qualify. In the old days (even as recently as summer of last year) you could finance up to 10 properties and get a mortgage without documenting your income. Now you must be able to document your income and you may only finance up to 4 properties if they are not your primary residence. This makes life a bit more challenging for investors, but it hasn’t slowed down the first time buyers much at all! FHA is still a very viable option for many new buyers and remember, FHA isn’t just for first time homeowners. You can ALWAYS use an FHA loan if you don’t have perfect credit or a lot of money to put down on the purchase.

What do you do if you have a loan over $417,000 and you want to take advantage of low fixed rates? Consider getting a home equity line of credit for the difference. With the Fed Funds Rate hovering at a range between zero and 1%, lines of credit are being found for as low as 3%! Of course, you need to remember to lock in a fixed rate on that line of credit once the market starts to rebound, but for the next year or so, this is about as cheap as money will ever get!

The best way to know if you can take advantage of this unprecedented opportunity to own and finance real estate is to call your lender.

Liana Pomeroy is a Certified Mortgage Planning Specialist with Cherry Creek Mortgage. She is best reached at 303-601-5197 or lpomeroy@ccmclending.com or visit her website at www.homewisedenver.com or www.denverhomewise.com.

Hello world!

lianapomeroy — Sun, 11 Jan 2009 18:37:46 +0000

Welcome to WordPress.com. This is your first post. Edit or delete it and start blogging!