|
|
Welcome to the inaugural edition of our newsletter. We will be sending this out twice a month to keep you apprised of happenings that may affect your business and lives. We hope that you enjoy our publication and welcome any feedback or suggestions for any future issues.
Your friends at Ann Arbor Mortgage Company |
|
|
Mortgage Rate Update
Interest rates are still at near historic lows with 30 year rates in the mid 4% range and 15 year rates in the low 4% range.
The threat of inflation down the road and modestly improved conditions in the labor market and economy may cause rates to rise. The Fed has just embarked on another round of Quantitative Easing (or QE2). Quantitative Easing is the concept of the Fed becoming a buyer of Treasuries and Bonds, in this case, to stimulate the economy by:
- Creating inflation
- Lowering the unemployment rate
- Raising stock prices
- Reducing the value of the dollar
While these goals may be good for the overall economy, we need to remember that all four are very unfriendly to mortgage bonds and home loan rates. |
|
NAR: Record Share of First-Time Buyers
Survey finds most buyers applied for tax credits
Source: Inman News First-time homebuyers accounted for half of all home sales from July 2009 through June 2010, according to a National Association of Realtors survey of buyers and sellers.
That's the highest share of first-time buyer purchases in the history of the survey, which dates back to 1981. First-time buyers responding to the survey made up 47% of sales in 2009.
91% of all buyers financed their home purchase; only 8% were ever rejected by a lender. Of those buyers, 42% obtained a conventional loan, 43% an FHA loan and 7% a VA loan.
|
|
Credit Corner
Credit Reports
True of False:
- Having only one credit card leads to a better credit score?
- Every time credit is pulled it is called a "credit inquiry" and will lower someone's credit score?
- Credit reports can have many different types of information such as: previous addresses, public record information and name variations?
- There are three credit bureaus who give out credit scores. They are always about the same score no matter what bureau you choose?
Answers:
- False. Although just a few credit cards may sound more responsible and may generate a higher credit score, you want to maintain a minimum of 3-4 trade lines reporting to the credit bureaus. A variety of credit cards, installment loans and mortgages is ideal.
- False. There are different reasons for accessing ones credit report and not all will impact someone's credit score. Insurance companies and some creditors perform what is known as a "soft credit pull" that does not affect the overall credit scores.
- True. There can be a lot of information on a credit report including those items mentioned and more, such as employer, state and federal tax liens and/or judgment for delinquent rent.
- False. Your credit score is a "snapshot" of your credit at the moment the credit report is seen. Each credit bureau has different criteria that they use when analyzing ones credit usage and history. Although in many cases the scores are relatively close to one another, in some cases a delinquency can appear on only one or two of the bureaus reports and can vastly lower those scores given by those bureaus.
|
|
|
|
|
Ann Arbor Mortgage Company
2200 Green Road, Suite E
Ann Arbor, Michigan 48105
www.a2mc.com |
|
|
|
|
|
Homeownership Rates
Homeownership rates over the past 25 years:
- 2010: 66.9%
- 2004: 69.0%
- 1999: 66.7%
- 1985: 64.0%
|
|
It May Not Pay To Remodel Your Home
From Remodeling magazine's 2010 Remodeling Cost vs. Value survey:
In general, anyone planning a home remodeling will pay a lot more for the job than they will get back in return when they sell. Only 60% of remodeling costs in 2010 would be recouped by homeowners. Exterior improvements mostly performed better than interior ones. An exterior steel door replacement returns 102% of its $1,218 cost and new garage doors recoup 84% of theirs.
In general, the more spent for a job, the lower the percentage of return. |
|
Our goal is that each customer and client becomes a RAVING FAN, someone who is so pleased with the experience they have had with Ann Arbor Mortgage Company, that they naturally and enthusiastically refer family, friends, and associates to us anytime the topic of home financing arises.
"Let's just say I am not the easiest of clients to work for. Probably a headache. My schedule is nearly impossible to open any large amount of time for meetings, and Candace was willing to accommodate that with late night calls, very early morning meetings, and even while she was on vacation. Candace stuck through it all. It was obvious she made it personal to get me exactly what I wanted. With every wall we came up against, she found some way to get me through it. Very truly, leaving no stone.
In closing, she is probably the biggest contributor in getting me around every closed door and the reason why I am sitting in the home of my dreams today. It is the people that develop the reputation of every business, and with confidence I have recommended her services to my family and friends."
- Mark J.
"My family was looking for a home, and we were new to the home buying process. It sounded like so much work, and quite frankly, I had no clue where to start. Pete walked us through step by step, he understood our hesitance, and took as much time as we needed for him to help us. He even helped us clean up our credit, and hit the ground running. We now have our new home, I am so much more educated on the process, and my family is so much happier in our new home. I not only bought a new house, I made a friend! I have never been more thankful to a company for their service as I am to Ann Arbor Mortgage.
- Robbie H. |
|
|
|
|
|
|
|
|
