Title: Money on Your Mind w/ Belinda Fuchs- April 2009 PT. 3

" There's a lot happening right now which is good and bad I think people -- controlled by the bank that's right mortgage company that's right there -- excellent so yeah. But the you know most people that I've been refinancing has been crazy over the last couple weeks getting trying to get everyone -- and didn't have one Loc and toll rate. And get the appraisers that out of these properties to appraisal business now has been decimated most -- left in the last couple years and now we need him again. So the -- president very busy. But refinanced in just in general I mean it's it's terrific right now you have the equity -- that income enough to prove to show you can qualify for a mortgage. This is a great time it's a great time to refinance and a great time to -- We'll open that these low rates and the prices being down I think it's a great opportunity right now for first time buyer. That's sitting next renting him some well that may want to know what by a place. That's what."

" Earlier today and I think it's well primed especially for first time home buyers to take advantage of you know there's opportunity for everybody. And rein in these different markets this is it you know which side are you on him and what being able to see. And so it's getting to OK so for first time home buyers to get the benefit of that depressed housing prices and they get the benefit of the lower rates. And so two things -- uninsured -- show one is. Come on this refinance topic what can affect someone's grey I quite eerie might be different area. And then the second thing on. Refinancing. Is not to cover that for fun and sun."

" I think. On the issue of race and not so much you know why it's so Windsor hill thank rate different than a fairly independent mortgage rate but. Why is the latest three different and just it's very. And what has happened over the past several months is that they have started to put in re pricing based on. Your equity positions and your credit score there are some other minor factors but those are really the two that most important for people understand. It credit score of 720. Or greater. Gets the best interest rates. Under 720. Even if it's a 719 which is a perfectly good credit score has the rate adjustment I'll point. So it's very important. That it is -- not know what your credit score is. And that there are various ways to access that but the mortgage score is the most important one that you get in front you mortgage lender. So before you start to consider buying or refinancing. Can he goes through pre approval process where we can't adviser last what you credit score is firing him credit -- yet. The other piece -- recommended people go through that perhaps a run at higher risk of absolutely. And the other piece of that is if you have 40% equity in your property which lets face it most people do not. Versus 20% equity in your property there is also rate differentials for that. So when you're sitting at dinner with your friends and your friends says I just got a great 5% rate. Can you call me up and you say hey Amy my friend just got a 5% rate and I -- looking your credits while we talk about the value of your home. I'm I have to formula that you're going to get five and a quarter percent -- or five and a half because perhaps your credit wasn't as good as your friends or. Your equity position was and and people are very accustomed to saying thirtieth rates at 5% but there. Consumer specific threat yeah poverty areas and specific kind of -- percent to problems and three quarters of -- percent difference in income credit scores. And what people are starting to consider again -- and on again historically a growing pay closing -- people have not paint points and very long time. But because of the rate differentials. You can choose to pay -- point. Let's just say argument saying that the difference. He's -- to a blender between 20% equity position and 40% his one point. And that that might be half a percent higher and great freedom. You can choose to take half a percent lower rate and paid -- one point feet from. So that I don't have costs as -- yes that's about and -- reminds you how the option to get the same rate as your friend but you may have to pay a fee in order to do that. Okay so there are options available that you should inquire about if you're told you have to have a higher rate."

" Okay that's a very hopeful place that cartoon that I can say as. We text and the adjustable rate mortgages are gonna stretch wrap up its amazing how fast this kind of flat island and so that's an interesting topic. So we mentioned that people may adjustable rate mortgages and may have very low rates right now. And yet I often -- encourage people to -- and 21 of the low fifteen years or thirty year rates now because we do expect the rates are going up do you have any. Anything you want to touch on about PowerPoint and office too many recommendations I would too. I think that is that it natural that people accent shown that it's misleading people -- my payments going up. Because out of 4%. Unit -- locking and unlocking an F five flight and I want to higher monthly rate I think it's very popular -- also means not just today this month but on the longer term -- says. Let me locked in for the next 1530 years at the slower rate very dependent upon your objectives how uneasy you'll have that mortgage. There are a lot of people who are coming up for adjustment last year. Prior to all speculation about rates going down. Who we -- by slit their rates adjust because they were going to adjust so incrementally. And down and down and then that now they've been able to take advantage of the lower rates but that's another crystal ball attitude and so you have to be very careful with that and look at somebody's overall financial package -- appreciates that and."

" And down one of them but we have we actually do one product that doesn't have any. Changes with cycles scorers. In the type of property. The within Fannie -- does is called in my community -- mass housing. Which anyone that's eligible for them right now that has like a multifamily right now I -- at one point 43 family. Have had to Bellingham are people of Israel right now -- to happen as of 1 April Fannie -- is adding on one point -- yeah so if I have a single family and I -- you know. Or another person is that 5%. -- 5% to one point. And -- effect of that raid and they look at five point 375. Well this particular product of mass housing that were eligible for that we do I do -- with them -- mass housing. They've been don't have that -- to the great so but there's also income restrictions within these different twist is that long to open is a thirty year fixed and it's very competitive."

" There are a lot of programs sleep in my community program that we offer as well. And it the FHA product is becoming very. Friends very popular again with just a federal housing administration program they only require three and a half percent down -- purchase. And they have no adjustments for declining markets. So whereas Fannie Mae if you're and a declining market you may be forced to put more money down under my community program or an FHA program. You are able to put down as littlest and a half percent. Great well thank you know -- think that's gonna last closing thoughts I wanted to keep things that I have."

" And learn from this it was really imprints of having a relationship. Where if a mortgage broker mortgage planner and that he really appreciate so. And can relate to a can talk to who can help you with this cost benefit analysis understanding all the terminology. And how what's happening right now. A sexy enough."

" I think that's really radical viewpoint and I would say to anybody stay away from the Internet. As far as getting more innocent days because you do need to -- one on one relationship and it isn't just -- pulse get a loan. It's very very detailed on and you really don't need help somebody -- California the."

" The mortgage business is more complex now Owens -- the changes. Every day Fannie -- putting on different. Attendance there to the guidelines. And I you know I spend hours just going over the making sure that I understand every change. Well how because each each and every change could affect depending on what you're doing right now."

" Tell us that we need you on that's -- saying nothing is attitude and a great industry right on a daily."

" From the NF and you look at mortgages are much too complicated for that right now you need to talk to someone who knows what they've done."

" Absolutely. There you go thank you that's a great way and I include actually our show. Instead today's topic was on making sense of the mortgage industry. And so you can stay tuned for more strategies tools tips. On what can be doing to save to plan for retirement. To manage your debt manager credit cards and so much more. He'll learn -- immediately if you have any feedback for us any questions any ideas about saving and the money on your mind. Contact us at money TV. At -- your money dot com. Thank you for joining us today. My name is Belinda -- and a host of money on their minds CPA -- coach and president have on your money dot com. Join us again to learn more ways that you can make far. Save mart and -- last about the money on your mind. --"