The other day I received a call from a gentleman looking to refinance out of his 2-year adjustable rate home mortgage (2/28 ARM) that is now variable. These home loans are typically reserved for subprime borrowers due to a poor credit rating. Although this is not an ideal loan, he wasn’t in too bad of shape because he put a serious 20% down when he purchased the property. I couldn’t help but think that this guy took the 2-year ARM for a good reason (bad credit?). This wasn’t the case however. After running his credit and seeing that he had plenty of credit depth and an impeccable credit rating going back 12 years, I asked him why he took the 2-year ARM. Unfortunately this gentlemen had been duped!

He went into the story of how the original loan officer offered him an incredible rate for what he thought was for a 30-year fixed loan, and the closing costs he quoted him were half what he thought they would be, so all in all it seemed like an incredible deal at the time. The rest of the process went smoothly until the day of closing when he found out that the 30-year fixed rate was actually for a 2-year ARM with a 3-year hard prepayment penalty, and the closing costs ended up being twice what he imagined. None the less, the gentlemen went on to sign the closing documents because the loan officer said that he would refinance him out of this loan for free. He also had nothing in hand to call this loan officer out with since the loan officer never gave him three vital documents that could have avoided this serious train wreck… and he didn’t know to ask for them.

Here are the three documents you need to ask for when applying for a mortgage that will help keep your loan officer honest:

• Good Faith Estimate (GFE) - This will break down all of the closing costs of the loan. These numbers are very difficult to get exact but the loan officer should never be off more than a couple hundred dollars.
• Truth in Lending Statement (TIL) - This document will disclose several important numbers but most importantly the Annual Percentage Rate, and whether the loan has a prepayment penalty or not.
• Financing Agreement - This document right here is gold and you should have a financing agreement early on whether the rate is locked or floating. The loan officer should issue this to you not only for your protection, but also for his since it lays out whether the rate is locked or if it is floating, the loan type, rate and any points being charged. If you’ve locked your loan in, you should immediately request this document as it tells you when the rate was locked and for how long the rate lock is good for. A lot of people feel that with just a GFE they are covered, but really it’s the financing agreement that gives you the most assurance of the loan you are being offered and keeps the loan officer honest. This is your insurance should anything change at, or prior to closing.

With these three items in hand you are now empowered to call the loan officer the day of closing to ask why your financing agreement says you are locked at a rate of 6.5% but the rate on the final loan papers is 7%, or why he is charging 2 points instead of the 1 on the GFE. You actually have a signed financing agreement from both parties that states your loan program, rate and points being charged. So any deviation from this is a call for action! A GFE on it’s own does not have as much power because as the name of the document states, “Good Faith Estimate” so don’t think you’re ‘good to go’ without your financing agreement.

If you keep these three documents in mind when applying for a loan you are insuring a smooth process. Not all loan officers conduct business in this manner so please don’t feel that I am saying that all loan officers need to be kept within arms reach. Like in many professions, the bad loan officers ruin it for the good ones, but none-the-less all loan officer should be offering these documents to you. You shouldn’t have to ask for them… Oh, and in case you are wondering, the loan officer I mentioned previously was never to be found by the home buyer after the closing– so there goes the “free” refinance…

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Here’s to high end living at Abingdon Row condos in Alexandria, VA. In the heart of Old Town, Alexandria you’ll have the convenience of big-city living. Only 5 miles south of Washington, DC and a few blocks from the Braddock Road Metro station. Units feature: Hardwood Floors in Living Room, Dining Room, Foyer and Kitchen, 9’ Ceilings in Living Areas, Recessed Lighting, Two Panel, Smooth Finish Interior Doors with Polished Chrome Hardware, Individual High Efficiency Electric Heat and Air Conditioning Systems, Fire Sprinkler and Smoke Detector Systems, Full Size Washer and Dryer, Balconies, Patios and Rooftop Decks in Select Homes, Granite Countertops in a Choice of Colors, Maple Cabinetry with 42” Upper Cabinets In a Choice of Finishes, Stainless Steel Undermount Sink, Stainless Steel Appliances, 30” Gas Range with Microwave Above, and Chrome Single Lever Faucet with Integral Spray. The building design features: Intimate, professionally Designed Lobby, Landscaped Courtyard, Controlled Entry Access, Reserved Underground Parking, Individual Storage Areas (select homes), State of the Art Wiring for Telephone, Cable, Data and Internet Access, and Community Rooftop Deck. One Bedroom One bathroom start at $364,900 and Two Bedroom Two bathroom start at $559,900.

If you would like to visit Abingdon Row condos in Alexandria, VA, be sure to contact us at 1-888-998-9455 or at info@homezill.com to receive an additional 2% cash back on the purchase of your new home!

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30-year fixed rate at 5.52%; 10-year Treasury yield at 3.79%

Long-term mortgage interest rates headed lower Friday, and the benchmark 10-year Treasury bond yield dropped to 3.79 percent.

The 30-year fixed-rate average sank to 5.52 percent, and the 15-year fixed rate slipped to 5.03 percent. The 1-year adjustable rate was down at 5.34 percent.

The 30-year Treasury bond yield fell to 4.38 percent.

Rates and bonds are current as of 7:15 pm (EST).

Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.

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Even Oprah Winfrey might have a hard time selling a mansion in this real estate market. Homes in great neighborhoods possessing exceptional architecture and well-landscaped gardens are suffering. During the housing boom, these properties practically sold themselves. Now, it’s not as easy as putting sign in your font yard.

Here are some tips for selling a high-end home in a soft real estate market:

1. Proper Pricing – No matter the size of your home, pricing will determine how long your home sits on the market. Don’t be afraid to drop the listing price to gain more interest. The chances are the money you lose here will be substantially less than if you priced your home high and brought down.

2. Hiring a Realtor – A good Realtor adds enough value to your home (or generates a good offer) to cover the commission you will pay out. An important factor in choosing your Realtor is to make sure they’re familiar with the neighborhood. Knowledge is priceless when it comes to a Realtor selling your home. Also, how do they plan on marketing your home? Hiring a team of agents can assure you will have the proper representation when

3. Quick Fixes – Investing money in a huge remodel is not usually going to pay off. Unless there is a great need for a fix like a leaky roof, stick with easy inexpensive fixes like painting and landscaping.

4. Web Brokers – Using a service like HomeZill.com will reduce your overhead costs and allow you to sell your home paying a reduced commission.  95% of home buyers use the web when searching for homes so unlike in the past, it is important to have a tech-savvy Realtor with a large online market presence.

5. Staging – Hiring a staging company to fill your home with nice furniture and professional decorations will make your home more attractive to potential buyers. The offers that you will receive often will make up for cost of the staging.

6. Incentives – Think about it... The cost of giving away a plasma TV, paying for hardwoods, or a credit for new appliances is worth it. Especially, if your home is going to sit on the market forever. These incentives are not going to get someone to buy your home, but they definitely get people in the door.

There is no ONE secret that will sell your home, but you do have to consider what will work for your home. Some factors will be the quality of your home, the particular market, the neighborhood you’re selling in, and the condition of your home. Remember, price your home to sell in the beginning to avoid the pitfalls of buyers targeting a “desperate seller”.

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Tucked away in a golf course community, you’ll find Penderbrook Square condos in Fairfax, VA. A metro bus that picks you up at the community for a short ride to the Vienna Metro Station. Ideal 2 BR 1 BA with walk-through closet, wrap-around bath, wood-burning FP, library alcove, 9′ or vaulted ceilings (per plan) and pantry storage. New major appliances throughout. One of the area’s most sought-after locations. Just a few miles from Fair Oaks Mall, convenient access to Rt. 66, Rt 29, Rt. 28, Fairfax County Parkway. 2 Bedroom 1 or 2 Bathroom units include: $279,000-$329,900 (1000 sq. ft.) $367/mo. Condo fees which include: HOA fee Master Insurance Water/Sewer Alarm System General Maintenance Common Areas, Building exteriors, Grounds Snow/Trash removal Gym, Pool, Tennis & Volleyball courts. Units feature: 9′ Ceilings or Tray Ceilings (per plan) Walk-through or Walk-in closets (per plan) Wood Burning Fireplaces New Major Appliances Including Full Sized Washer & Dryer New Flooring Merillat Cabinetry Selections in Top or Raised Panel Blinds Digital Alarm & Service Plasma TV Option New 42″ Cabinets with Pull-out Trays New Solid Surface Countertops New GE Refrigerator w/Icemaker New GE Dishwasher New GE Microwave New GE Range New Solid Surface Kitchen Sink with Sprayer Faucet and Disposal New White Raised Panel Vanities New Cultured Marble Countertops New Flooring New Tile Surrounds New Commodes 50% off greens fees and carts.

Last time I checked, the builder was offering a 6% home buyer incentive!

• 564 sq. ft.1 bed 1 bath $224,657
• 700 sq. ft. 1bed 1 bath $259,925
• 700 sq. ft. 1 bed 1 bath $261,441
• 877 sq. ft. 2 bed 1 bath $261,441
• 1070 sq. ft. 2 bed 2 bath $315,900
• 1070 sq. ft 2 bed 2 bath $319,900

If you would like to visit Penderbrook Square condos in Fairfax, Virginia, be sure to contact us at 1-888-998-9455 or at info@homezill.com to receive an additional 2% cash back home buyer rebate on the purchase of your new Fairfax VA home.

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Bank of America’s agreement to buy mortgage giant Countrywide Financial in a $4 billion all-stock deal put investors at ease yesterday, sky-rocketing shares of Countrywide by 51%, after the mortgage crisis sank the stock below the $5 level. The deal gives Countrywide 0.1822 share of Bank of America for each share they own, valuing Countrywide at $7.16 each, a 7.6% discount.

This deal is a landmark in the mortgage crisis, given the history of Countrywide being the nation’s biggest mortgage lender until recently.

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