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Summer is clicking away.  There’s still plenty of time to have fun in Minnesota this summer. 

Looking for some ideas? Here’s a few things to do up North!

~ Tall Ships Festival in Duluth – Eight tall ships, replicas of old schooners and other sailing vessels, sail into the port of Duluth July 29-August 2nd. 

~ Split Rock Lighthouse 100th Anniversay: July 31st

~ Bayfront Blues Festival, Duluth: August 6-8th

~ Iron Range ideas: visit ironrange.org

Whether you are trying to buy a home or refinance your current home – sometimes thinking outside-of-the-box will help you achieve your goals

You’d like to buy a home and take advantage of today’s low rates, but you do not have enough money saved for the down payment.  What can you do?

1. Ask a parent or grandparent to “gift” you the funds.  Some programs allow your employer to “gift” you money too.

2. Take a loan againsts your retirement account – you will pay yourself back every month tax free and the debt is not used against you in qualifying. 

3. See if the community you’d like to live in has a down payment assistance program.  Currently the City of St. Paul/Mpls and Dakota County have down payment assistance loans. 

4. If you are a Veteran – you do not need a down payment.  Ever!

As the housing crisis looms, home owners are finding it more difficult to pull equity out of their homes to complete normal home improvements like getting their roof repaired, replacing old windows or purchasing a new furnace.  Shoreview, Minnesota is offering up to $20,000 for residents seeking to complete  energy improvements.  If residents remain in the home for 10 years the interest is forgiven. 

Money, low rates and added tax incentives for new windows makes this a win-win-win solution.  Some income and loan size restrictions apply.  Check out the details.  Here’s a link to Shoreview’s website.  http://www.shoreviewmn.gov/news/new-home-improvement-loan

City of Saint Paul just expired their program offering up to $6500 to home owners making energy improvements. 

Here’s what to do…google your City’s name.  Look under their “resources” tab and see if they have a home improvement program available in your area. 

In the future, I’ll keep you posted here too.

The past few days we’ve seen the return of low interest rates.  Why?  The troubled Eurpean financial market provided a flight to safety (discussed a few days ago on this blog) -this flux increased investing in US Treasury Bonds which lowered interest rates, temporarily. 

China is stepping in to rescue Europe – providing a stabilization to the market and a decreased need for US Treasuries means higher rates. 

Glad we were able to lock in so many clients yesterday, and take advantage of the nice dip in the market.  It was fun while it lasted.

Great question! It used to be a simple answer…”if you are dropping your interest rate by 1.5 – 2.0% it makes sense,” (that’s when most people only owed $125,000 or less on their mortgages).  Now the equation is more interesting.

When someone asks me if they should refinance we compare the current rate to the new rate, determine the cost savings per month compared to the cost to refinance and the total interest saved by refinancing.  I can do this in a few short minutes over the phone. No appointment necessary.

Next…Is there enough equity left in the property to refinance? For some people if they refinanced today they would need to pay mortgage insurance where previously they did not (thank you, housing crisis).  Adding monthly PMI could skew the need to refi. 

I’m always happy to provide people with an honest assessment to their question, “should I refinance?”  Their options, costs, and the pros and cons presented so they can make an informed decision.  My opinion is free.

Recent news about European bank failures creates the need to put funds where it is deemed safe, also called a “Flight to Safety” and the US bond market is just the place to go.  This week a major bank in Spain failed and when something of this magnitude happens the bond market improves and mortgage rates go down.  If you are currently shopping interest rates for a home purchase or considering a refinance this is a great time to take advantage of lower rates.

Last summer someone broke into our car.  Not a big deal, but we’d left a copy of our bank statement in the car (not smart!) and the bank statement was taken.  Suddenly our identity was at risk.

If you’ve been a victim of identity theft here’s a few tips of what you need to do immediately to protect yourself:

1. Report it!  Contact the three major credit bureaus and place a”fraud alert” on your file.  Also, request no new lines of credit be established without your approval (see below for credit bureau information)

2. Close accounts: We contacted our bank and asked them to close our existing accounts.  They easily mirrored each account with a new number.

3. Call the police: File a report with your local police.  Keep a copy of the police report – you may need it if your credit or bank accounts are impacted.

4. Tattletale! file a complaint with the FTC (Federal Trade Commission).  They maintain a database of identity theft cases used by law enforcement agencies for investigations.

www.equifax.com

www.experian.com

www.transunion.com

What does prom have to do with mortgage rates? 

Nothing! But this is prom week in our house and I feel a need to chat about it; dress alterations, up-do, manicure, pedicure, massage, flowers, make-up.  It’s a little excessive, yet I’m right with my daughter scheduling appointments and going along with all the fun, or madness.  Why? because she saved so much money on her dress purchase we have money left over to do the extra perks. 

Several of her friends purchased dresses for $400-500 (ridiculous! I think that’s what I paid for my wedding dress in ‘92). We paid less than $100 – for a lovely black formal she’s sure to wear the next two years, (at least that’s the story I’m selling myself).

If other parents are buying dresses for $400+, buying shoes, undergarments, manicures, up do’s etc…surely this surge of Spring income will help the economy.  Right? What I’m really doing is helping the economy, (or at least that’s the story I’m selling to myself).

If your son or daughter is going to prom – I share your pocket-book pain.  Let’s hope all the kids have a great time and come home safe.

Thank you Greece.  Thank you for your economic woes and inner Government turmoil.  Yes, you are all the way across the world but your troubles have investors thinking our market it better than yours – and the short story is our mortgage rates improved because of your debacle.

If you are thinking of refinancing or writing an offer to purchase a house this week – enjoy this dip in the market and consider locking in.  It probably won’t last too long.  Greece will eventually pull their act together -after-all, as Americans we are part of their solution plan via the International Monetary Fund (IMF).

A letter arrives in the mail addressed to you at your current address.  Your current lender’s name is also shown on the inside letter and an important seal of authenticity.  Facts about your mortgage are listed, the date of your last mortgage, the original loan amount and the interest rate.  A few additional calculations are added showing how much your “current lender” can save you per month by refinancing.

You’ve been scammed!

Your current lender did not send the letter.  It’s a company pretending to be and hopes you will pick up the phone and call to inquire.  BEWARE!  Do not call!  The initial offer is false.  They may ask for money over the phone to get your application started. DON’T.  Never pay an application fee over the phone or via the internet.  You may never get the money back.  Usually the final closing costs or interest rate worsen and unsuspecting consumers find the final mortgage is not what was promised.

How do you determine which offer is legitimate or not? Here’s a clue…if it arrived via phone, internet or in the mail in a different envelope than your monthly mortgage statement – it’s a scam.