The weekly report from Freddie Mac stated that the 30 year fixed rate fell to 4.44% for the week ending Thursday, August 12^th.  The 4.44% rate is at the lowest since the government backed lender began tracking the rate back in 1971.

Also this week, the 15 year fixed rate fell to 3.92%; this is the lowest rate since Freddie Mac began tracking it back in 1991.  It is down from 3.95% last week and 4.68% from a year ago.

Adjustable-rate mortgages declined as well.  The 5 year rate fell to 3.56% this week; this rate is the lowest since 2005 when the lender began tracking it.

“Low rates are helping to heal many battered local housing markets by increasing home-purchase activity, said Frank Nothaft, chief economist at Freddie Mac.

Mortgage rate applications went up a modest 0.6% during the week, according to the Mortgage Bankers Association.  Applications for purchase rose 0.3% while refinance applications increased 0.6%.

Austin Mortgage Associates has been providing families with their mortgage solutions in Texas for over 10 years.  CLICK HERE to verify Austin Mortgage Associates A+ rating with the Better Business Bureau and see our BBB report.

Give us a call today and let us know how we can best serve you!

While the number of bedrooms, condition of the kitchen and bathrooms and size of the yard are all major considerations, there are other things to consider before you make your offer.

Location, Location, Location

I’m sure you’ve heard this before:  “The 3 most important things to think about when buying are home are location, location, location!”  If you fall in love with the neighborhood, you can live with many imperfections in your home.  Everything else – you can change!  Other things to consider is your home’s proximity to work, how the home is situated on the lot, ease of access from major roadways, noise from traffic or neighbors pets, and access to parks, schools, and shopping.  Read my note about the Top 10 Places to Live in 2010 HERE .

Consider the Home’s Outer Appeal

Your home should match your lifestyle.   Here are some things to ask yourself:

✓  What is your first impression of the house and yard area?
✓  Do you like the exterior features of the house?  If not, can you enhance them?
✓  What do you think is the worst exterior features of the house?  Can you minimize or improve it?
✓  Is the roof in good condition?

Talk To Neighbors

You’ll want to find out if most people own their homes.  It’s not always easy to tell if you’re choosing a neighborhood that’s primarily rental houses. Do they have a homeowners association?  Do they have a block party every year?  Neighbors that have gatherings want to get to know each other, are willing to socialize and care about their community.

Home Size & Floor Plan

While everyone wants to buy their “dream home’, is that dream impractical?  Do you really need 4 bedrooms and 4 baths if you live alone?  While a larger home will definitely give you the extra space you’ve always dreamed about, you will be paying higher heating bills, have higher taxes and it will take more furniture to furnish it.

Get An Excellent Mortgage Broker

It’s imperative that you find an ethical, reliable, dependable mortgage broker.

✓  Your mortgage broker should explain any terms that are unfamiliar to you.  If you have to bring your real estate term dictionary with you every time you meet — RUN!
✓  Your mortgage broker will explain the numbers (payments, rates, terms, fees, loan amount, etc.) as many times as it takes for you to understand them
✓  Your mortgage broker is available – whether your important call is on a weekday or a weekend.
✓  Your mortgage broker should have an A+ Better Business Bureau rating!

Austin Mortgage Associates has been providing families with their mortgage solutions in Texas for over 10 years.  CLICK HERE to verify Austin Mortgage Associates A+ rating with the Better Business Bureau and see our BBB report.

Give us a call today and let us know how we can best serve you!

This is so true!  We can’t help but appreciate real estate – especially here in Texas.  I’m flooded every day with calls – families looking to make the move to Texas.  And why not?  Take a look at these facts:

Top Best Places to live in 2010: Austin, TX (#3) and San Antonio, TX (#5)

Top 10 Earth Friendly Cities in 2010: Austin, TX (#5) and Fort Worth, TX (#8)

Top 10 Single/Young Professional Cities for 2010: Dallas, TX (#3) and Austin, TX (#6)

Top 10 College Towns in 2010: Austin, TX #3

Top 10 Recovery Cities in 2010: Austin, TX is #2

Top 10 Retirement Cities in 2010: San Antonio, TX #8

Top 10 Large Cities for 2010: Dallas, TX (#2), San Antonio, TX (#3) and Austin, TX (#5)

If you’re relocating yourself, and perhaps your family, to Texas, and you need answers when it comes to real estate or mortgages, give us a call!  Austin Mortgage Associates has been providing families with their mortgage solutions in Texas over the past 10 years.  It’s been our pleasure to see families move to – and flourish – in this great state!

In addition to purchase loans, we also provide refinancing of both primary residences and investment properties, as well as home equity and cash out refinancing. We do conventional loans and jumbo loans in addition to the government loans which include FHA loans, VA loans and Texas Veterans Land Board loans.

Give us a call today and let us know how we can best serve you!

CLICK HERE to verify Austin Mortgage Associates A+ rating with the Better Business Bureau and see our BBB report.

So what does this mean for home buyers? There are SMOKIN real estate deals everywhere!

With Austin ranked the 3rd best city to move to in the United States (according to a RelocateAmerica.com report) and the Texas State capital taking the No. 2 spot on the “America’s Top 100 Places to Live” for 2010, home buyers are realizing that here and now is the time to buy!

3 Tips For Home Buyers

1. Accumulate a decent down payment, but not at the cost of your emergency fund. The no-money-down era of lending is gone…

2. Choose a loan originator wisely. This is one of the most critical and difficult tasks for buyers, since there are currently no national licensing standards in place.  Ask for referrals from friends and colleagues.  Know how long a broker has been in business, do Internet searches to see if his or her name is mentioned in unflattering or criminal ways and check his or her record with state regulatory agencies. And finally – Do a Better Business Bureau Check!

3. Get pre-qualified as early as possible. You need to know how much house you can afford and what kind of money you will need for down payment and closing costs.

Have questions? Contact us today!

We focus in Austin, Round Rock, Georgetown, Pflugerville, Cedar Park, Leander, Lake Travis, Lakeway, and Westlake. We also have a presence and facilitate loans in and around Dallas, Houston and San Antonio. In addition to purchase loans, we also provide refinancing of both primary residences and investment properties, as well as home equity and cash out refinancing. We do conventional loans and jumbo loans in addition to the government loans which include FHA loans, VA loans and Texas Veterans Land Board loans. We are a mortgage broker with multiple avenues available to provide the best and most competitive solution for your specific needs.

Give us a call today and let us know how we can best serve you!

CLICK HERE to verify Austin Mortgage Associates A+ rating with the Better Business Bureau and see our BBB report.

WomenCertified today announced that Austin Mortgage Associates CEO, James Copeland, of Round Rock, has completed the WomenCertified training & certification program and is now specially qualified to provide an extraordinary level of service to women.

FOR IMMEDIATE RELEASE

PR Log (Press Release) – Mar 24, 2010 – Copeland specializes in residential mortgage lending in the Round Rock office on North Mays Street, providing home mortgage loans for the purchase or refinance of residential real estate. Austin Mortgage Associates focuses in Austin, Round Rock, Georgetown, Pflugerville, Cedar Park, Leander, Lake Travis, Lakeway and Westlake. They also have a presence and facilitate loans in and around Dallas, Houston and San Antonio.

The goal of WomenCertified is to create women friendly companies and buying experiences. Statistics show that over 83% of all consumer purchases are made by women, making them the primary customer in almost every industry.  WomenCertified is designed to teach sales and service professionals how to deliver better customer service, tailored especially for the female customer.

To become WomenCertified, professionals must complete a series of intensive training modules to learn the communication and customer service skills proven to be the most effective and desirable among women customers. Developed and conducted by Delia Passi, the leading expert and author on marketing and communicating to women, the training program includes a four-part online course track or live training and a culminating test. Passi has trained thousands of sales and service professionals across the nation in developing top communication skills, and she is the CEO and President of Medelia, Inc.

“James Copeland and the sales and service professionals who become WomenCertified are now part of a growing group who are raising the bar in providing the best customer service experience to women,” said Passi. “Studies show that Americans are growing less satisfied with the levels of customer service they receive, and WomenCertified is working to reverse that trend. It’s a win-win opportunity for companies and consumers.”

About WomenCertified®

WomenCertified—the Seal women trust for better service—is a proven training and certification program rich with resources to help professionals across multiple industries increase customer loyalty among both men and women through more effective communication, appreciation and an enriched customer experience. For more information, visit www.womencertified.com.

Congratulations James Copeland and Austin Mortgage Associates!

Click here to read the Press Release

Getting a mortgage can be a very confusing process.  There is a lot of paperwork to sign, documents to read and procedures to be followed.  You’d think you were applying to go to Harvard or Yale, except they don’t require that much paperwork for you to be admitted!  Although getting a mortgage can be a confusing process, there are three terms that every mortgage holder should know to better understand what he or she is getting into.

Going into a mortgage knowing just a few facts will help you immensely in understanding what type of commitment you are getting into.

The first term you should understand is, amazingly, the word term.  Term refers to the length of the mortgage you are taking out – or the amount of time you are making payments.

Many mortgages run the gauntlet of between ten and thirty years.  The longer the mortgage, typically the lower your monthly payment will be (and the more interest the mortgage company makes).  Generally speaking, you should go for the shortest term you can comfortably afford – you’ll save potentially tens of thousands (and in some cases potentially over a hundred thousand) dollars in interest by keeping the length of the mortgage as short as you can.

Next, understand the interest rate on your mortgage and how it is calculated.  The interest rate refers to the amount of interest charges you will pay for the money you are borrowing, expressed as a decimal – such as 5.2 for 5.2%.  Is it fixed or adjustable?  In other words, is it the same through the life of the loan or does it change at specified periods in time?  Most home buyers should try and steer clear of adjustable rate mortgages even though they can look better up front.  They can often reset to higher interest rates and come back to bite you if you aren’t ready for a jump in your monthly payments!

Finally, understand what closing costs are and how they are going to affect your purchase price.  Often times, you are going to be responsible for coming up with these closing costs out of your own pocket, although they can be rolled into the loan in certain instances. Closing costs consists of things such as appraisals done on the house, attorney fees, notary fee, deed fee – if there is a fee they can think of it usually falls under the term closing costs!  Be a smart and savvy consumer.  If you see a fee that you don’t understand or doesn’t seem right – speak up!  Some mortgage lenders try to sneak in any fee they can think of to make a few extra dollars profit.

Understanding these three terms can help make you a more informed home buyer and help you find the mortgage that is right for you.  As with any product, it is important to shop around for a mortgage when you are considering buying a house.  Even a small change in the interest rate between two lenders can often amount to thousands of dollars in savings.  Don’t be afraid to comparison shop – it’s your money after all!

Have questions? Contact us today!

We focus in Austin, Round Rock, Georgetown, Pflugerville, Cedar Park, Leander, Lake Travis, Lakeway, and Westlake. We also have a presence and facilitate loans in and around Dallas, Houston and San Antonio. In addition to purchase loans, we also provide refinancing of both primary residences and investment properties, as well as home equity and cash out refinancing. We do conventional loans and jumbo loans in addition to the government loans which include FHA loans, VA loans and Texas Veterans Land Board loans. We are a mortgage broker with multiple avenues available to provide the best and most competitive solution for your specific needs.

Give us a call today and let us know how we can best serve you!

CLICK HERE to verify Austin Mortgage Associates A+ rating with the Better Business Bureau and see our BBB report.

Wow!  The Federal Housing Administration is raising fees and tightening lending standards in an effort to shore up its strapped finances and to avoid a taxpayer bailout!  The policy changes were announced two days ago on January 20, 2010 and are to become effective in the spring and early summer of 2010.

FHA Commissioner David Stevens has declared the changes “AMONG THE MOST SIGNIFICANT STEPS TO ADDRESS RISK IN THE AGENCY’S HISTORY”….that accounts for almost 40 MILLION mortgages since 1934!  On January 20, the Austin American Statesman quotes Howard Glaser to say “mortgage lenders will find the new rules PAINFUL but NECESSARY”. Mr. Glaser is a mortgage industry consultant and former housing official during the Clinton administration…that was 1993 through 2001…not like that was just yesterday!

Now if I did not know better, this news would be very alarming.  I may begin thinking that I just may not be able to buy a house in 2010 because of the new regulations.  Well guess what??

You still can.  There are three main changes that are slated to soon be implemented.  The first two of the “MOST SIGNIFICANT STEPS” most likely will not even be noticed and the 3^rd would not be what I call “PAINFUL” but it will be necessary.

The following examples will explain my statement.

Change #1

FHA has always charged an up front fee for mortgage insurance which is rolled into the loan. For the past five years or so, that fee has been 1.75% of the loan.  Prior to that, the fee was 2.25%. When the fee was decreased about five years ago, it made no difference at all as to what one would qualify for nor was it ever a factor considered in the decision making process of the purchase!  The reason is this…on a home sold for $175,000 (approx. average sales price in Central Texas) the current fee of 1.75% is $3062.50 which again, is rolled into the financed amount of the home. The new proposed fee of 2.25% (.5% increase) is equal to $3937.50.  Simple math tells us the difference is an increase of $875.00 in the amount financed.  At the current rate of 5.0%, on a 30 year fixed mortgage, the payment difference is $4.70 per month!

That is hardly what I would consider painful and as you can see, most likely will not even be noticed!

Change #2

Credit scores, commonly termed FICO scores, will need to be 580 minimum in order to be approved for an FHA loan with the minimum 3.5% down payment.  If under 580, a minimum of 10% will be required for the down payment.  Here’s where it gets confusing and why I previously stated that it most likely would not be noticed.  Even though FHA policy states that the score must be at least 580, approximately 99% of all FHA lenders will not even consider approving an FHA loan unless the credit score is at least 620!

Bottom line…the new guideline has no effect on the lenders current requirements!

Change #3

The seller’s currently are allowed to pay up to 6% of the borrowers closing cost.  In most cases, that is enough to cover the entire cost.  The new regulations are slated to reduce the maximum seller concessions to 3%.  In some cases, notably on small loans under $100,000, this will not be enough to cover the entire closing cost and the borrower will be obligated to pay a small portion of the closing cost in addition to the 3.5% down payment.

I do not consider this as “painful” and I have some great ideas to help alleviate the pressure that this may cause.

The Good News!

The good news is that as scary as the changes appear on the outside, they are very minor in terms of making any significant difference in the current buying process.  If a borrower qualifies for an FHA mortgage now, they will still qualify once the changes are implemented!

I suggest getting pre-approved immediately if you are considering the purchase of a house in the near future.  If you have not owned a home in the past 3 years, the $8000.00 tax credit has been extended through April 30^th.  You must have a contract by then to qualify for the $8000.00 and must close by June 30^th.

There is a major influx of buyers expected so the sooner you have a contract, the better chance you have of closing before the deadline!

Contact us and make your FHA application today!

Read my published articles HERE

The truth of the matter is — they just had not met the right mortgage broker!  Those prospects are now my Clients, also known as Homeowners!

Given the fact that most people do not go through the buying process very many times throughout their life, they typically do not know what is involved, and it can be a little overwhelming.  In being sensitive to that, my objective is to make the process as easy as possible.

The purchase process begins with nothing more than a thought with most people.  They wonder if they can even qualify to buy a house and if so, how much house they can buy for the money they have to spend.  Everyone has a budget in mind and just needs some guidance on how to navigate through the process to identify which houses will work for them.  It’s my job to educate my clients on the options as they pertain to their individual needs. Once we have established the right price range for them and the type of loan that best fits their needs, it’s time to find the right house.  Once they have a contract, the rest is up to me.  I coordinate the entire transaction and we all meet back together on closing day…it’s that easy!  I love going to closings a month after we start and they can’t believe it’s done!  That actually happens often and always calls for a big celebration!

Advantages of  Buying A Home

There are many advantages of buying a home instead of renting.  The housing market is at or near the bottom according to the experts…the recovery has begun in the state of Texas!

Obviously, the best time to buy is when prices are the lowest and beginning to go up.  Other than the price, the interest rate has a major bearing on how much house you can buy for a particular payment.  Mortgage rates are also at historical lows which enable you to purchase more house for the money and they are expected to rise in the near future.  As far as down payment and cash needed to buy a home, there are still loan programs that allow for only 3.5% down payments, and depending on location, zero down loans are still possible.  All of these are great reasons to purchase a home and make an investment instead of renting and having absolutely nothing to show for it when you are done.  There are some great tax advantages associated with purchasing a home as well!

In addition to all these great reasons, there is one more limited time bonus!  If you have not owned a home in the past three years, you will receive up to $8000.00 cash back in your pocket when you purchase a home!  In order to qualify for this tax credit from the US Government, you must close on your home purchase by June 30, 2010.

The time to buy is now!  I highly recommend getting started on the process so there is ample time to close and reap the benefit of getting the best of everything when it comes to purchasing a home!

Austin Mortgage Associates is here to help you through every step of the process when you are ready.  All you need is a thought! Contact us today!

Read my published articles HERE

We are all suffering over tighter lending guidelines which make it difficult to sell, purchase, and refinance homes.

In the middle of the past decade, the housing industry was flourishing.  This got the attention of the money men: the bankers, traders, and originators of mortgage loans.  The buying and selling of loans became a game of chess.  One lender would loosen lending guidelines today and another lender would loosen them further tomorrow.  Eventually, this aggressiveness led to a lack of attention which led to a lack of control.  There were no quality control measures or restrictions put in place to keep up with the growing lending markets.  As in anything else, when there is a free-for-all, the end result will not be pretty….someone always gets left holding the bag!  In this case, it was a number of mega lenders who awoke in desperate need of a Bailout!

Suddenly, America had an entire vocabulary of new household words…AIG, Goldman Sachs, Citigroup, JP Morgan Chase, Morgan Stanley, Bank of America, etc…

I now talk to clients daily that are all victims of others greed.  Most of the ones responsible for the down fall are now long gone.  Others have been “rescued” or bailed out and are still hanging on.  Many are already serving time behind bars for their irresponsibility, and a large number are still hiding.

Just yesterday, Jan. 13, 2010, in the Austin American Statesman on the front of the Business section, was an article on Mortgage Lending Regulation.  It points out a local lender, as well as 14 others in the U.S., that are under subpoena by the Federal Housing Officials.  This has just become a sign of the times.  There is now a new tax proposal known as the “Financial Crisis Responsibility Fee” which focuses on reforming the financial industry after more than a year of bailout efforts.  If passed by Congress, it would be a tax collected from about 50 banks, insurance companies and Wall Street trading houses.  Obama was quoted to say, “My commitment is to recover every single dime that the American people are owed”.

What exactly does that mean?

Only time will tell.

For now, and as always in the past, Austin Mortgage Associates will continue doing business ethically.  We have always had the highest rating possible by the Better Business Bureau: A+ ! We have earned that by doing what we say we will do, being competitive and getting the job done on time and on budget.  We have always had the utmost respect and appreciation for our clients and treated them accordingly.  Although the guidelines are more stringent, people that pay their bills and deserve to purchase or refinance a home, can still qualify for loan approval!

If you want nothing but the best, trust your home financing needs to Austin Mortgage Associates!  Contact us today!

Read my published articles HERE

Most likely, the top thing on your mind when thinking about mortgage refinancing is getting a lower interest rate so you can get into a lower payment, right?  While that idea is the most common, I strongly recommend that you explore all other options when looking at mortgage refinancing – which is what I do with every client that I consult with.  My objective is to help my client make a financial decision that has the greatest benefit to them!

The Good…

What do I mean by, “The Good?”  Getting a lower interest rate and a lower payment is good.  Typically, that is saving money, which is good.

The Bad…

The bad part about mortgage refinancing is that most borrowers who do so, start the clock over for another 30 year term.

The Ugly…

The bank loves the new extended term since you now owe them over twice as much as they just loaned you!  In addition to that, most borrowers that refinance and get lower payments actually never know where the savings from the lower payment went.  It seems like the extra $100 or $200 saved just never shows up in the new budget!

THE BEAUTIFUL!

This is what separates me from the rest.  The bank that refinances your mortgage would never call this to your attention – much less explain the advantages and encourage you to apply this principle. What am I referring to is the principle of Equity Acceleration!

My objective, as previously stated, is to help my client make a financial decision that has the greatest benefit to them.  In most cases, my clients are OK with their current payment.  If so, I present a program which enables them to allow their money to work for them, instead of working for the bank!  The idea becomes keeping more of your money and giving less to the bank!  We simply reallocate the money that you are paying on the current loan, which results in saving tens of thousands of dollars!!  In addition, you will establish equity much faster on the new plan.  The best part about all of this is that you will not spend any more than you are spending now on your current payment.

This indeed, is “Your Key to Home Ownership.”

Call our office today to find out how you can apply the principle of Equity Acceleration!

CLICK HERE for our contact information!

Read my published articles HERE