Sweepstakes Winner Announced

Elaine Moreau of Hudson, NH is the winner of our first “Win a FREE Mortgage Payment” Sweepstakes.

Read the press release here

What Kind of Mortgage Do You Have?

A new BankRate poll found 34% of homeowners do not know what type of mortgage they own.

Other items of note:

• 28% of survey respondents worry (either "regularly" or "sometimes") about how they will afford their payments next year.
  
• 34% of respondents with ARMs do not know what they will do when their loan readjusts.
  

If you have an adjsutable rate mortgage, now may be the time to lock into a mortgage with a fixed rate. Call Compass Mortgage at (603)472-2272 or visit www.CharleyFarleyHomeLoans.com


Source: BankRate

So You Want to be a Landlord...

Owning rental property can be a nightmare -- or a good way to steadily build wealth.

The difference between a profitable investment and a disaster, experienced landlords say, is often the amount of work an investor is willing to put in. Not everyone is cut out to screen tenants, track down overdue rents and field middle-of-the-night repair calls.

Read the entire story (from MSN) here: articles.moneycentral.msn.com/Investing/RealEstate/DoYouHaveWhatItTakesToBeALandlord.aspx.

My House is Worth.......

"My House is Worth What?", a new series that began airing on HGTV in August 2006, is coming to Manchester, NH in May. Show producers are looking for area homeowners who would like to be considered for the show.

Each episode of the show tells homeowners across the country:

• what their current home is worth,
  
• where they should renovate if they are planning to
  
• or just how much equity is available to fulfill a life long dream (child’s college, wedding, trip around the world, etc.)
  

For more information on the show, visit www.pietown.tv/shows/myHouseIsWorthWhat.html

For an application form, visit www.pietown.tv/shows/myHouseclientreqs_H.html

How Terrorists Affect Your Mortgage Application Process

Here's how current laws that were developed to stop/detour/minimize terrorist activities affect you when you apply for a mortgage:

The Patriot Act is a U.S. Federal law that was designed to assist in the prevention of money laundering by terrorists. (Money laundering occurs "when criminals attempt to characterize the proceeds from illegal activities as funds derived from a legitimate enterprise."*) Terrorist financing is only one aspect of money laundering. But the events of September 11 has made our government aware of how crucial it is to block terrorist access to the U.S. financial system.

According to the U.S. Treasury, identifying and curtailing terrorist financing isn't easy. This is because transactions may originate from legitimate sources and involve relatively small amounts of money. So efforts to contain terrorist-related money laundering must be both broad and comprehensive.

The Patriot Act covers a wide range of activities, from simply opening up a checking account to taking out a home loan. All lenders -- including Compass Mortgage -- must comply with this law. (And as mortgage brokers, we must also meet the "due diligence" practices of the many companies whose programs we offer.) But what does this mean to you when you apply for a new mortgage or attempt refinance an existing one?

The Patriot Act requires us to verify your identity when you ask us to help you obtain a loan. When you apply, we'll ask you for your name, address, date of birth, and other information that allows us to identify you. We'll also ask to see your driver's license/passport/military ID (or other form of government-issued photo ID).

After you provide us with the information we need, your name is then checked to determine whether it appears on any government-provided lists of known (or suspected) terrorists/terrorist organizations. Your current home address and place of employment are also verified; the source of funds used for the transaction are also considered.

Additionally, we're required to keep an eye out for borrowers who
-- provide insufficient or suspicious information
-- have funds inconsistent with their income
-- have suspicious movements of funds from one bank into another

The overwhelming majority of most lenders' customers and transactions are not considered "high-risk", so is the Patriot Act and similar legislation really necessary? Some people believe that the personal information they are now required to provide when conducting financial transactions represents an invasion of privacy. Regardless of whether this is true, the fact remains that the Patriot Act is a law that all lenders -- including Compass Mortgage -- are required to follow. Also, most borrowers recognize that the satisfaction of home ownership far outweighs the inconvenience of having to provide additional proof of identity.

*Source: Findlaw.com

Mortgage Programs and Homeselling

For buyers, ramifications of the current mortgage industry gyrations are pretty apparent. Because lenders are tightening requirements for obtaining credit, it may be harder for many people to obtain a favorable mortgage program. (And even if you do qualify for one, you may have to put more money down.)

But what does this mean to you if you're trying to sell your home?

Fewer qualified borrowers could mean a smaller pool of available buyers for your house -- no matter what your asking price. In the recent past, homes of all sizes and value have been financed through "no money down" and "no income verification" loans, from entry-level homes through multi-million dollar properties. Although "low doc/no doc" programs are unlikely to vanish entirely, there will fewer programs and fewer loans offered in these categories.

Fewer buyers is not the only problem for homesellers. The buyers who are in the market may have less money to spend than previously. (Again, because of stricter lending requirements means, potential homebuyers may qualify for a lower amount of financing than they may have six months or a year ago.)

So fewer buyers with less money means that homeowners may have to lower their asking and selling prices. If you're a buyer with impeccable credit, this can be a great opportunity to get more house for your money. If you're the seller... well, not so good.

So should you sell now, before requirements constrict further? Or should you try and wait it out until the industry normalizes (in late 2007 or early 2008)? Because each situtation is unique, we advise that you consult with your Realtor.

Limited Housing Options for Those With Bad Credit

A Reuters article claims that, due to the subprime mortgage situation, lower-cost housing (such as mobile home parks and apartment rentals) may be the only housing options left to those closed out of homeownership.

However, it warns that former homeowners with ruined credit from mortgage defaults --or those who have substandard credit -- might still find it difficult to find housing. Becaus eof their bad credit, they won't easily qualify for a personal loan with which to buy a mobile home. What's more, many available apartments are in high-quality buildings that have tough credit standards for tenants.

Soure: www.reuters.com/article/ousiv/idUSN1930366120070320