Landmark Lending

02/18/2022

I am often asked the question - "Is now a good time to buy a home?" And also, "Don't you think the housing market is ripe for a correction?"

Both are very understandable questions given that nationally home appreciation increased 19% in the last 12 months. Then add to that interest rates have gone up more than a full percent closer to 4% on a 30 year fixed than the 3% range (and below) we had been seeing last year.

So you may be surprised to learn that existing home sales numbers were up in January 6.7% in January and 2.3% year over year. See the report here: https://www.nar.realtor/newsroom/existing-home-sales-surge-6-7-in-january

The obvious question is why? Very simple answer - most basic of economic principals - Supply and Demand. In January nationally we hit the lowest number in history of home inventory for sale at 860,000 homes. For comparison the last time we actually did have a housing bubble in 2007 there were 3,700,000 homes for sale during the mortgage melt down and foreclosure surge. So almost 3 million more homes for sale then and more than 4 times the current inventory we have today.

The average days on market before a home goes into contract is now 19 days nationally and there is only 1.6 months of existing homes in inventory - also a record low! In other words if no new homes were being added into the mix we'd have no homes available in about a month and a half.

So what's the moral of this story? Bad time to buy? Rents continue to up at around 10% per year so if you are waiting for a housing market correction you are going to be waiting quite a while and missing an incredible buying opportunity today.

On a month-over-month basis, sales increased in all four major U.S. regions in January. Year-over-year, activity was mixed as two regions reported sagging sales, another saw sales increase and a fourth region remained flat.

01/31/2022

Market Forecast for 2022

08/23/2021

Should You Bid More Money than a House is Worth???

03/10/2018

Homeowners often ask me whether it’s worth trying to pay off their mortgage faster than the standard 30-year term.

Let’s take an example. Say you have a $450,000 mortgage on a 30-year term at 4.0%. If you could somehow shorten the term to 20 years, you would save yourself almost $120,000 in total interest, or essentially one-third of the total interest that you would pay over the term of your loan.

So the simple answer is “yes.” Paying off your mortgage faster will lead to significant savings. But there are many ways to do this. The method you choose for increasing your mortgage payments will affect just how much savings you’ll see in the end.

What happens when you do bi-monthly payments? People often ask me about paying half their mortgage every two weeks rather than making the entire payment once a month. Because there are 52 weeks in a year, paying bi-monthly results in 26 half payments, or 13 total payments (instead of 12 monthly payments). This method allows you to shorten the term from 30 years to 25 years and save roughly $100,000.

But take note. When you make bi-monthly payments, the lender doesn’t credit your account until they receive the full amount due. As a result, you still pay the same amount of interest as you would when paying monthly.

There’s another way to make 13 payments over the course of a year but save much more overall.
Here’s how to save even more:
In the example above, the monthly mortgage payment is $2,148 (principal and interest only). Let’s say you tacked on an additional $180 to each payment, which is about a twelfth of the amount due each month. You’d still be making one extra mortgage payment each year. But in this scenario, the lender immediately applies the extra $180 to principal reduction and lowers the interest charged each time this additional amount is paid. Because this accelerates paying the principal, the loan is now paid off in 21 years. You would save $150,000 in interest over the life of the loan.

One caution: If any organization asks for a fee to help administrate this process, you should turn them down. The lender or service provider can electronically reset your payments for free, and you can start saving on your mortgage right away.

If you have any questions about how to start paying off your mortgage faster, please reach out to me and I’ll gladly take you through the process step by step.

Warm wishes,

Ricky Walters
Landmark Lending

02/16/2018

With Agent Mitch Candler at Brokers Open at 2126 Inverness Ct, Pleasanton, CA

01/30/2018

8 Do’s and Don'ts for Good Credit

I hope that your 2021 has gotten off to a great start. The New Year is the perfect time to start and maintain good credit habits. With that in mind, I’m offering you my list of credit do’s and don’ts.

Do: Pay all credit accounts on time. This is especially true for mortgage payments. Letting any bill go more than 30 days past due will generate a negative report from the credit bureaus.

Don’t: Never let your mortgage go more than 90 days past due. After 90 days, the lender will issue a Notice of Default (NOD), which is a preliminary step in the foreclosure process. If there’s no action within 90 days of the NOD, the homeowner will receive a Notice of Trustee Sale (NOTS).

Do: Do a little research before paying off a collection account or a disputed account. Find out how long ago the creditor last reported the delinquency. As a general rule, don’t pay off a collection account more than 24 months old when in the process of applying for a home loan; it will bring the derogatory account current and cause your score to go down.

Don’t: Avoid loan modifications if you can. Different from refinancing, loan modifications usually decrease your short-term financial obligations but increase the length of the loan period. Lenders and credit bureaus view modifications negatively, and it will be more difficult for you to get a loan in the future.

Do: Shop around for a loan when purchasing your home. Some people erroneously believe their credit score will go down if multiple lenders pull their credit history in a short period of time. Credit bureaus issue no penalties in these cases. Go ahead and hunt for the best mortgage terms you can find.

Don’t: Be cautious about closing old credit card accounts. When you close an account that has a zero balance and good credit history, you remove all that good history from your credit report. Your credit score will probably go down.

Do: Report any errors your find on credit statements. If you find a mistake, contact the creditor and ask them to provide a letter acknowledging that they have made an error and are correcting it.

Don’t: Never spend more than 90 percent of your credit limit, it’s a red flag for credit bureaus. However, you can improve your credit score by keeping your balance below 30 percent of the credit limit for each credit card.

12/20/2017

Read the full article:
http://www.landmarklendingnetwork.com/docs/facebookposts/article-171219.pdf

12/01/2017

http://www.landmarklendingnetwork.com/docs/Tax%20Plan.pdf