Is no-fee loan too good to be true?

Is no-fee loan too good to be true?
Tucson, Arizona | Published: 05.13.2007

WASHINGTON — Home loan industry competitors are searching for hidden gimmicks, but Bank of America says that its "No Fee Mortgage Plus" plan, announced last Tuesday, delivers exactly what the name implies — without raising interest rates to applicants.
The new program comes with none of the traditional mortgage and settlement charges — application fee, appraisal fee, and fees for credit, underwriting, processing, title insurance, title search, private mortgage insurance, flood certification or closing costs, among others — and offers "competitive" interest rates.

On a typical loan, these fees can amount to 3 percent to 5 percent of the mortgage amount, depending on location, and run into thousands of dollars.

Bank of America says it is so certain that its no-fee deal stacks up well against competitors' rate-plus-fee offerings that it's urging applicants to comparison-shop the market intensively, with Bank of America's quote in hand, before making a final commitment. If an applicant who is approved by the bank for a no-fee loan chooses to close with a competitor, the bank promises to pay that applicant $250.

The no-fee package also comes with a 25-days-or-less closing guarantee. If the closing occurs later than the deadline, the bank says it will pay the applicant's first month's worth of principal and interest.

Is this all for real? How can a lender eat thousands of dollars in costs without somehow slipping them into the deal somewhere? So-called "zero-cost" refinancings are readily available in the market, but they typically include the origination and settlement charges as part of the note rate — bumping it up by an extra 0.25 percent or more.

Other lenders also have offered "guaranteed mortgage package" quotes of rates and fees with no additional charges allowed between application and settlement. But those packages still charge borrowers most of the traditional lender and closing costs.
Floyd Robinson, president of consumer real estate for Bank of America, said the company is able to offer "a true no-fee mortgage product" in part because of the bank's sheer size — $1.5 trillion in total assets, 55 million banking customers nationwide, and a nearly $350 billion portfolio of first and second home mortgages. That size allows it to create cost efficiencies and take over certain responsibilities that smaller institutions cannot.

For instance, the no-fee program allows down payments as low as 5 percent for conventional mortgages up to $417,000 — and even lower for certain "jumbo" loans of up to $3 million — without private mortgage insurance premiums. The bank intends to keep all or most of the no-fee loans in its own portfolio, Robinson said in an interview.

"We are the investor, and we assume the risk" of defaults or foreclosures on loans with low down payments. Rather than requiring borrowers to pay monthly mortgage insurance premiums, the bank is self-insuring the risk and charging customers nothing for the service.

Sensitive to any suggestion that the new program loads nominally waived fees into the interest rate, Robinson said that "our rates are very competitive" with those of other mortgage lenders who charge all the usual fees. Competing brokers or lenders might be able to quote slightly lower note rates, he said, but when shoppers look at the truth-in-lending "annual percentage rate" disclosure — where all the loan costs are factored into the effective rate being charged for the loan — "we are confident that we will have the best deal." If not, "we'll pay you, no questions asked."

Robinson added that the no-fee approach allows borrowers to choose key service providers such as title insurance and closing agents rather than settle with bank-designated firms.
Some competitors are skeptical that the new program could possibly do everything the bank claims. Steve Cecco, president of Ameristar Mortgage Group Inc. in Albuquerque, said, "There's no way that anybody originates or closes a loan for nothing — it's got to be reflected in the rate or somewhere else."

Mike Bennett, Western regional sales manager for Wilmington Financial, a mortgage subsidiary of insurance giant AIG, gave the program grudging respect.

"I don't know too many people who can compete with it" in its current form, Bennett said. "It's obviously a loss leader for Bank of America." That is, the bank is cutting profit margins and internal costs in order to bring in customers that it can later sell other, more profitable products and services.

Some limitations that Bank of America includes in the fine print:

You can't apply unless you already have an account with the bank, even if it involves minimal deposits.

State and local transfer taxes, property taxes and other government levies are not covered by the no-fee guarantee. Nor are prepaid interest or discount points, hazard or flood insurance, and homeowner association fees.

The program is solely for home purchases — primary or second properties. No refinancers are allowed.

Advice by Kenneth Harney
Kenneth Harney writes an award-winning, nationally syndicated real estate column. Contact him at kenharney@earthlink.net.

When you're selling, all the home's a stage

When you're selling, all the home's a stage

By Stephanie Earls
Albany Times Union

May 12, 2007

It had good bones, so you bought it, certain that -- with a little cash, and some time -- you could make it into your dream home. Fresh paint. New carpet. A gourmet kitchen, and master bath with heated towel rack.

But intentions, even really cool ones, do not equal equity. If the time to resell comes before all your renovation plans could be seen to fruition, it's time to forget about grand dreams.

It's all about getting the biggest return for your short-term effort. Experts say a few quick, affordable updates and decorating tricks can make the difference between no offers and warring bids. Staging or preparing the home, both inside and out, to create the biggest impact and best impression -- can draw in buyers and up sale prices, often for minimal cost to homeowners.

Stagers and real estate agents say the first step when preparing a home for sale is to clean up and clear out.

"The most inexpensive things often get the biggest return," said real estate agent Terry Little. "People are buying space as much as structure."

You're moving out anyway, so you might as well get an early start, said Geri Kissane, owner of Above and Beyond Home Staging in Delmar, N.Y. Like other stagers, Kissane will do the work for you, or just serve as a consultant with you doing the grunt work. All depends on your budget.

"I suggest you get a POD. Put it in your driveway, as you're packing [inside the house], move it out" to the storage unit, she said. PODs, and storage alternatives like it, are portable units that are packed on site then moved to a facility for longer-term storage. Remove personal items from all surfaces.

Put away refrigerator magnets, and pack up collectibles into boxes that can either be removed from the home or, if they're pretty enough, artfully stacked. "We've seen [huge collections of] Hummels, teacups, salt-and-pepper shakers," said Sheila Palmer, who runs Homes Staged 2 Sell in Schenectady, N.Y. "That's not what you want the buyer to see. You want them to see the walls, the beautiful view."

Beverly Tracy, of Beverly Tracy Home Design in Saratoga Springs, N.Y., walks through a client's house sticking Post-its to what needs to go. If you don't have a professional stager, consider asking a friend or relative or anyone you feel can be honest with you to walk through and point out items that might be a turn-off to potential buyers.

Be prepared to make some emotional decisions, and to face the fact that your taste might not be universal.

"It's like, `I know you love your lime green front door, but it's really got to go,'" said Kissane, adding that staging -- and a stager's job -- can be tough on a homeowner's emotions. "I had to tell one family to stop cooking. They did a lot of Indian cooking. The smell permeated the drapes and the wood. [It's] just not appealing to everybody. If you smell it, you can't sell it."

Fix any visible problems that might be a red flag for potential buyers -- such as stained plaster or drywall that could indicate an old leak or settling or other structural problems.

Add fresh paint, in neutral colors, and focus on first-floor rooms and public rooms, like the kitchen, dining room and living room. Clean up the exterior of the home, add potted plants and repair damaged walkways

Even a house that's not in dire need of renovations should be given at least two weeks' prep time.

On the flip side of clutter-clearing, an empty house can leave potential buyers feeling cold -- both physically and emotionally, said Kissane.

"There's the echo factor. It's cold. And they'll see every single little scratch and nick and dent," she said. People can't tell how big the rooms are without furniture.

"Establish a visual reference point. Even if you have two chairs and an area rug, they'll say "Oh, it's furnished and it's huge,'" Kissane said.

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Countrywide Home Loans Offers Home Buying Tips to Gear up for Busiest Moving Month of the Year

Countrywide Home Loans Offers Home Buying Tips to Gear up for Busiest Moving Month of the Year The busiest moving month of the year for Americans, May, has arrived. According to a 2004 - 2005 United States Census Bureau study on geographic mobility, each year more than 39 million Americans will choose to start fresh, moving into a new home in the month of May. Most importantly, before home buyers do their moving, they must make financial decisions that affect their ability to move. Calabasas, CA (Vocus) May 8, 2007 -- The busiest moving month of the year for Americans, May, has arrived. According to a 2004 - 2005 United States Census Bureau study on geographic mobility, each year more than 39 million Americans will choose to start fresh, moving into a new home in the month of May. Most importantly, before home buyers do their moving, they must make financial decisions that affect their ability to move. "With numerous details involved in moving a household, and ultimately the important economic commitment, making the right financial decisions concerning your home loan and mortgage lender are critical necessities," said Tom Hunt, managing director of Countrywide Home Loans. "Countrywide Home Loans has helped millions of home buyers involved in the home-buying process by assisting them in identifying the best mortgage loan and payment for them based on their individual financial situation." As one of the most significant milestones in life, it is important for first-time and existing homeowners to remember a few quick tips when preparing to buy a new home. Quick Tips for a May Move The home buying process can be simplified by making the right choices. From deciding whether homeownership is the best feasible option to coordinating the actual move into a new home, all of these steps are essential to the process. Additionally, tools such as easy-to-use mortgage calculators to help determine how much house you can afford, and what your monthly payment will be can be found at http://www.countrywide.com. The following are a few initial steps to consider: 1. Good credit counts. Know your credit history. Meet with a reputable mortgage lender, such as Countrywide Home Loans, to understand your credit score; work on any credit challenges; and know how much house you can afford. 2. How much can you afford? Proper planning and discipline can make the dream of owning a home a reality. Setting a realistic price range, for both new and move-up buyers, is vital. This helps minimize the risk of heartbreak from finding the perfect home but then encountering difficulty in qualifying for purchase financing, or walking away from a dream house that you do not realize may actually be affordable. 3. Describe your desires. Once you have a good idea of how much home you can afford, it's time to start prioritizing the most important home features. To help turn your desires into an organized list that will help you evaluate your options, ask a very important question: What am I looking for in a home? Always remember that there is no magic formula for determining which home is right for you. The home shopping process is much more subjective and intangible. 4. The search is on. Now that you know how much you can afford and have ironed out your preferences for the home of your dreams, it's time to go shopping. Ask those you trust for suggestions to help you find a real estate agent and link you to services that will help you evaluate the neighborhood, city and schools. 5. One size does not fit all. A changing real estate market may tempt a buyer to stick to a standard 30-year, fixed rate mortgage; however, this approach, while a comfortable choice for many, may not always optimally serve the home buyer's situation. A good lender will work to help the home buyer find a loan that is consistent with the individual needs and qualifications, unique financial situation, stage of life and personal financial goals of the buyer. For additional information, contact Countrywide Home Loans at 800-570-9888 or visit http://www.countrywide.com. Home financing experts are available to help answer questions about the home-buying process. About Countrywide Home Loans, Inc. Countrywide Home Loans, Inc., a member of the Countrywide® family - America's #1 home loan lender - (as ranked for 2006 by Inside Mortgage Finance, Feb. 2, 2007, Copyright 2007), originates, purchases, securitizes, sells and services home loans and is the primary subsidiary of Countrywide Financial Corporation (NYSE: CFC). Countrywide Financial Corporation, through its subsidiaries, provides mortgage banking and diversified financial services in domestic and international markets. Founded in 1969 and a member of the S&P 500 and Fortune 500, Countrywide Financial Corporation is headquartered in Calabasas, California and its family of companies has a workforce of more than 50,000 in over 900 offices across the country. http://www.countrywide.com Contact Information Cari Kerns Countrywide Home Loans, Inc. http://www.countrywide.com 800-796-8448

Web site provides a new forum to market open houses

Web site provides a new forum to market open houses

HomesOpenToday.com

Tuesday, May 08, 2007

By Glenn Roberts Jr.
Inman News

A Realtor association in the San Francisco Bay Area is using technology to promote a very low-tech real estate marketing tool: the open house.

The Contra Costa Association of Realtors has launched HomesOpenToday.com as a new venue for members to advertise open houses to the public.

Real estate professionals may debate the usefulness of open houses in selling homes, though surveys have shown that they are still popular among home shoppers. The National Association of Realtors' 2006 Profile of Home Buyers and Sellers found that 47 percent of buyers visited open houses during their home search.

"The open house, I'm told repeatedly, is a dead phenomenon -- a dead form of lead generation. Yet people still hold them," said Michael Seguin, director of technology for the Contra Costa Association of Realtors who created the Web site. Most prospective home buyers are starting their property searches online these days, he added, and the site may help real estate professionals reach a broader audience of home shoppers and agents alike.

HomesOpenToday.com, which launched in October, is the brainchild of Larry Spiteri, 2006 president for the Contra Costa Realtors group, who suggested that association members should have a way to publish and control open-house information in the digital domain.

"He came to me with a problem, not a solution," said Seguin -- adding that he savors such opportunities as a technologist.

So Seguin created an interface with the association's multiple listing service that pulls open-house property information directly from the MLS for display at the new Web site. The MLS information updates every hour.

MLS members can post the date and time for the open house at the HomesOpenToday.com Web site, and that information is instantly accessible to site users. Members do not need to retype property information that has already been entered in the MLS.

The Web site also features property descriptions, photos, maps, driving directions and agent profiles. Users can search for open houses within a specific price range or a specific number of bedrooms or bathrooms for the entire MLS region.

Seguin said there are active discussions to expand the Web tool to service other MLS areas, and the Contra Costa Association of Realtors is a member of an effort to combine several Northern California MLSs into a single, massive regional MLS called NCREX. The tool, he said, "was built to service the nation -- we are in negotiations with other entities to get this licensed."

The Web site can accommodate any MLS that uses a common real estate data standard known as RETS (Real Estate Transaction Standard), he said. Seguin affectionately dubbed a couple of the software tools he built for the Web site "R2D2" and "C3PO" -- named for the droids duo featured in the "Star Wars" films.

Many Realtors continue to publish open-house information in local newspapers, and Seguin doesn't expect the Web site to change that in the short term. "My members have been very well served by their relationship with newspapers in the past. There's always room for another channel to publish information."

The Realtor association is promoting the new Web site, which is also referred to by the acronym "HOT," to the public with an ad campaign, and has also promoted the site to its members through bulletins and announcements at its Web site.

About 1,500 members have used the Web site so far out of a total association membership of about 4,000, Seguin said. There are sign attachments promoting the Web site that are available to members, he said, and members can also request a personally branded Web address for the site that they can use in their marketing materials. The site has been creeping up the Web search-engine rankings, Seguin said, and there are typically about 300 open houses per weekend listed at the site.

Mark Ross, broker for Ross Co. Realtors who has used the HomesOpenToday.com Web site, said he started using the site about a month ago, and so far he has confirmed that at least one open-house visitor found the information at that Web site.

"I am using it for all open houses," he said. "I think it's in its nascent stage. It'll take awhile for it to catch on. I think ultimately it will be a successful tool -- (but) not as successful as Craigslist has become. I'm finding an awful lot of savvy buyers are using the Internet. This is a pretty innovative tool, I would say. It also helps agents not rely solely on print ads."

Ross said he continues to advertise in print publications, though he has shifted his ad spend from about 50 percent print and 50 percent Internet to 25 percent print and 75 percent Internet. Many open-house visitors still respond to print ads, he said.

Open houses seem popular among prospective buyers who have already contacted a real estate agent, Ross said. He estimates that perhaps 80 percent to 90 percent of the prospective buyers at open houses are already represented by an agent or have at least contacted an agent.

While Ross is a fan of open houses -- he conducted five last weekend -- he also realizes that some agents are not. "Open houses seem to be fading a little bit in popularity in the industry because it's very time consuming," he said. He tends to limit his open houses to about 90 minutes apiece. "The three-hour open house I think is a waste of time. If you shorten it up it creates a sense of urgency."

Other Web sites have been used to promote open houses -- Realogy's OpenHouse.com Web site promotes open houses held by the company's own offices, for example.

Seguin said that HomesOpenToday.com formerly required users to enter contact information to view more detailed property information, though now the site is fully accessible without any registration or contact information. The site does provide contact information for real estate professionals if consumers are seeking additional information about a particular property.

Members of the Realtor association can host the information from the Web site to their own Web site with proper attribution, he also said, and there are several new features for the Web site in the works.

Retirees Look at Reverse Mortgages

Retirees Look at Reverse Mortgages

Burlington, Vermont - May 7, 2007

Sally Rice of Burlington is enjoying her retirement.

Said Rice: "Well, when I was making a decision whether or not I wanted to retire, I knew I did not want to retire as a poor lady. These are the prime years of my life, and I wanted to enjoy them."

Rice has a retirement plan in place that includes a pension and social security. After that runs out, she will consider living off of her largest asset -- her house.

"As the boomers get into retirement, and they start realizing that they want to do more... they want to stay active, and they're on a fixed income suddenly, the reverse mortgage is a tool," said Scott Funk, a reverse mortgage broker from Richmond.

In a typical mortgage, the home owner makes a monthly payment... after each payment to the lender, the homeowner increases the equity in their home.

Reverse mortgages are just that -- a mortgage in reverse. The homeowner gets paid by the lender each month, and the homeowner's equity in their property decreases.

For older persons who already have significant equity in their home but don't have enough income, reverse mortgages can be a good financial move.

Continued Funk: "You want to be there for the long haul when you're getting a reverse mortgage, because the price is structured to give you the best value over the longest period of time."

"I have no intentions of moving out of here," said Rice about her home. "This is where I want to be the rest of my life if it all possible. I've got the equity in the house and why not use it?"

But there are some caveats -- reverse mortgages are expensive to set up, and should not be used for short term borrowing.

With a reverse mortgage, the loan does not need to be paid until the homeowner dies, or moves out of the home. In that case, the home can be sold to repay the loan.

Reverse mortgages are structured so that the amount loaned is never more than the value of the home. That leaves lenders and heirs with little risk.

For Rice, a reverse mortgage could be the key to a worry free retirement.

"It made me feel so good to know that that option was there, and I could go on leading a nice life in retirement and still know that I won't be a burden to any of my family members," concluded Rice.

To be eligible for a reverse mortgage, you have to be at least 62 years old and own your own home, but you can have an existing mortgage on the property. The amount of money you can receive from a reverse mortgage depends on factors such as how old you are, how much equity you have in your home, and how long you plan to live there.

Alex Martin - WCAX News
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Mortgage Refinancing Fact vs. Fiction: 5 Facts Potentially Put Money in Your Pocket

Mortgage Refinancing Fact vs. Fiction: 5 Facts Potentially Put Money in Your Pocket

Mortgage refinancing was practically a national pastime in recent years. And, because some people consider themselves an expert once they’ve done something once, a lot of mythology developed around the subject of mortgage refinancing. Before you consider a refinance in today’s market, be sure you’re working with facts — not fiction.

Mortgage refinancing facts

Fiction: If you can lower your rate by a half-percent, it’s always worth it to refi!
Fact: It all depends on what you pay in up-front costs, and how long you actually keep the home or the loan. If you pay 3% in closing costs to lower your rate by a half-percent—and then sell or refinance again the next year, the only one who’s probably making money by mortgage refinancing is your lender.

Fiction: If you have an adjustable rate (ARM), switching to a fixed rate should be your first priority when mortgage refinancing.
Fact: Many a mortgage professional — from the loan agent to the mortgage company owner — will choose an adjustable rate over a fixed rate mortgage, depending on their circumstances. That’s because they’re number crunchers by nature, and will run the numbers to determine whether their out-of-pocket costs in the first few years will be less with an ARM or a 30 year fixed rate mortgage. When the numbers favor an ARM, it can be the loan of choice.

Fiction: The only smart mortgage refinance is one with no up-front costs.
Fact: Again, it all depends. Lenders have to cover their costs, plus make a profit. If they’re not charging you up-front, they’re likely charging you with a higher interest rate, and possibly a prepayment penalty on the back end. Depending on how long you plan to keep the loan, the “no cost” loan could end up costing you more!

Fiction: Mortgage refinancing is all about the interest rate — the lower the better.
Fact: You guessed it! The truth, once again, is “it depends.” The very lowest interest rate will probably require higher points and fees. Someone will have to crunch the numbers to find the break-even point, when the costs you’ve paid up-front are offset by the reduced rate. Make sure your plan to keep the loan is consistent with the loan you choose.

Fiction: You’d be crazy to refinance from a fixed rate to an adjustable.
Fact: Hardly! Mortgage refinancing is done to achieve a number of goals — securing the lowest fixed rate is only one. For many, reducing their mortgage payment is the goal — and ARMs may be much better suited to that objective. Those who don’t plan to stay in a home for 30 years may not want to pay more for a feature they won’t use?

Download the FREE guide “Everythign you need to know about an equity loan.”

Paying Off Your Mortgage and Saving/Investing at the Same Time

May 05, 2007

Paying Off Your Mortgage and Saving/Investing at the Same Time

Here's a good comment left in response to my post titled Should You Pay Off Your Home or Not?:

Seems to me it's a great time to throw out the word "moderation". I am investing heavily in my 401K, investing in a ROTH, investing in a 529 plan and paying down my mortgage. By balancing all of these, I'm seeing my net worth increase pretty rapidly and also feeling like I'm making good headway on knocking down my mortgage.

This is both what I recommend as well as what I did (I say "did" because the mortgage is gone -- I still do the savings portions) as I outlined in When to Pay Off Your Mortgage. We were able to save like bandits as well as pay off our mortgage early because of one thing: we spent way less than we earned. To the extent that you spend less, you can save/invest/pay off more (kinda simple math, but it was worth saying.) ;-)

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Home sellers: Carry back mortgage and profit

Home sellers: Carry back mortgage and profit

Tue, 1 May 2007 12:00:00 GMT

Why method is recommended over land contract sale Robert J. Bruss Inman News Editor's note: Robert Bruss is temporarily away. The following column from Bruss' "Best of" collection first appeared Sunday, April 16, 2006. DEAR BOB: My husband and I are avid readers of your columns. We own a townhouse that we bought as an investment. Now we are considering selling it. If we agree to owner financing and retain title until the loan is paid, can the buyers deduct the mortgage interest and property taxes on their income tax returns? --Melana W. DEAR MELANA: Yes. The situation you describe is called a land contract sale, contract for deed, contract of sale, agreement of sale, installment land sale, and a zillion other names. Purchase Bob Bruss reports online. The basic idea is the seller retains the legal title until the buyer makes all or an agreed number of payments to the seller. If there is an existing mortgage, the seller uses part of the buyer's payments to keep payments current on that mortgage. As the seller, you remain the legal owner. The buyer becomes the equitable owner entitled to the income tax deductions. Your big benefit is you can report the sale to the Internal Revenue Service as an installment sale, paying capital gains tax on your profit over the years you receive principal payments from the buyer. You also get to pay ordinary income tax on your interest income received. However, I do not recommend this type of sale for either real estate buyers or sellers. The potential problem for buyers is often the seller is unable to deliver marketable title after the buyer faithfully made all the agreed payments to the seller. The potential problem for land contract sellers, in many states, is the difficulty of getting a defaulting buyer out of the property if the buyer claims an equitable interest in it. A better alternative is to transfer title to your buyer and carry back a mortgage or deed of trust secured by the property. Then, if your buyer defaults, you can foreclose. For full details, please consult a local real estate attorney.

Today’s Real Estate News
Thu, 3 May 2007 12:00:00 GMT Negative amortization should raise red flag Robert J. Bruss Inman News DEAR BOB: In a recent article you said, "Now you know why I never recommend negative-amortization adjustable-rate mortgages (ARMs)." Does that mean you changed your advice? I recall your many articles recommended the COFI (cost of funds index) ARMs, which have negative amortization. --Tom C. DEAR TOM: ARMs that use the COFI do not always have negative amortization where the borrower's monthly payment increases slower than the interest index increases. The result can be the unpaid interest is added to the mortgage balance, thus creating negative amortization. I have never recommended negative-amortization ARMs. Personally, I have had several COFI adjustable-rate mortgages that didn't have negative amortization. The key question to ask is how often the ARM monthly payment and the index change. If the index rate can change faster than the borrower's monthly payment changes, then negative amortization results, thus increasing the mortgage balance by the unpaid interest amount. I have not changed my viewpoint. I do not recommend negative amortization ARMs, which can be a very bad deal, especially when the home buyer made a low- or zero-cash down payment. CAN THREE OWNERS EACH QUALIFY FOR $250,000 HOME-SALE TAX BREAK? DEAR BOB: I read in your column that two principal residence co-owners (who are not spouses) can each qualify for up to $250,000 of tax-free sales profits under Internal Revenue Code 121. Can three owners of one house qualify? Would $250,000 be available to each co-owner, or is $500,000 the maximum exemption per home sale? Is there any limit to the number of co-owners who can qualify for this tax exemption? --John S. DEAR JOHN: There is no limit in Internal Revenue Code 121 to the number of $250,000 principal residence sale exemptions if each co-owner qualifies. However, when the co-owners are not husband and wife, then all their names must be on the title at least 24 of the 60 months before the sale and the property must be the principal residence of each owner for the required 24 of the last 60 months before sale. An example would be three sisters who own and occupy their principal residence for the required minimum time before selling, thus qualifying for up to $750,000 tax-free sales profits. For further details, please consult your tax adviser. DON'T GET A REVERSE MORTGAGE UNLESS YOU EXPECT TO LIVE IN THE HOME AT LEAST FIVE YEARS DEAR BOB: I am way over 65 and live in my condo that is worth around $300,000. The life expectancy of males in my family is only 50 years. I am considering a senior citizen reverse mortgage, or I might sell my condo and invest the sales proceeds. Which option do you feel is best for me? --Wally D. DEAR WALLY: If you are in reasonably good health for your age, and expect to remain in your home for at least five years, I suggest you seriously consider the benefits of a reverse mortgage. The reason you should plan to stay in your home at least five years is to amortize the reverse mortgage up-front loan fees. To illustrate, if you are in poor health with a life expectancy of two years, a reverse mortgage would not be a smart decision. More details are in my special report, "The Whole Truth About Reverse Mortgages for Senior Citizen Homeowners," available for $5 from Robert Bruss, 251 Park Road, Burlingame, CA 94010 or by credit card at 1-800-736-1736 or instant Internet delivery at www.BobBruss.com. Questions for this column are welcome at either address. Copyright 2007 Inman News

FSBO Homes Rolla, Missouri

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Address :10575 Stoltz Dr. Rolla, MO 65401

School District: Truman, Heat Type: Standard Gas, Air Type: Central A/C, Pool: YES, Owner Financing: NO, Sewer Type: City Provided, Is an Agent Allowed: YES, Garage Attached: Attached, Is the Owner also the Agent: NO, Description: 5 bedroom 3.5 bath 3700 square foot executive home that is very family friendly. Located just 1/4 mile east of the City Limits of Rolla, MO on 1 acre M/L. White oak hard wood floors throughout most of the main floor with master suite which features a walk in closet and Juccuzi tub with a seperate shower. Main floor has 9' ceilings with a 18'X20' great room featuring 11'6" cathederal ceiling and huge feature circle top Anderson window. Main level also includes a 17' X10' sun room that is fully heated and cooled as well as a 12' x 5' utility room with sink and cabinetry. Upper level includes 3 large bedrooms, two with walk-in closets and a bonus sitting room and a full bath. Lower walk out level features a 28' x14' family room, a 17' X 8' office, a 5th bedroom and a 3/4 bath along with storage and furnace area. Other features include a full central vacuum sytem. Outside space includes large a two level 22'X16' deck plus a 16'X33' pool that is totally surrounded by 26'X45' deck. This is a great house to entertain all sizes of groups. The home sits on 1 acre M/L with another adjacent lot available. Also has 8' X 19' lawn mower room and a full two car garage with tool/ storage room. Recent upgrades include a high efficiency 2 speed gas furnace and new air conditioner. Our family loved this home with all the outdoor space and so close to town but just outside of town. We would still be there if we hadn't built our family dream home that we finished this winter. veiw at www.myFSBO.com/10575H Give us a call or e-mail and we will arrange a private showing 573-368-8460 or jackm@fidmail.com , Fireplaces: 0, Utilities: , Garage Type: 2 Car, Topography: , Number Of Floors: 3, Architectual Style: Other, Basement: YES

There is No National Real Estate Market

There is No National Real Estate Market

May 1st, 2007 — Greg

I remember when the big Y2K bug was the big story. Seemed like it was on the news every day during the last six months of 1999, warning me about my computer crashing and the airports and businesses would be shut down. The nation was in a panic and the media loved it. I remember New Year’s Eve 1999 (well, I remember most of the night anyway). It was a blast- people thought the following day would be chaos so they wanted to have fun and celebrate like crazy while the electricity was still working. And then midnight came… and the lights stayed on. And life went on as usual. And the media went on to the next big story.

This is how the national media works- find something (anything)to latch onto, create sensation around it, present it in a “Must-See” format, sell ads. Everything seems credible when it’s broadcast across the country- but it’s not.

The national media is not an educational forum- it is a collection of for-profit organizations charged with making money. And they make money getting people to watch so they can sell ads. How do they do that? They create sensational stories. Watch the news for a month and you will have seen at least a dozen ways to “prevent disaster” in your home and at work and on the road and etc etc…. The American news feeds paranoia because fear sells. That’s why we went to war in Iraq, that’s why horror movies can be so lame and still make millions, and that’s why there are foolish real estate “bubble” theorists.

The national real estate market is a farce. It is the home of Loch Ness and that big Snowman. You cannot paint an accurate portrayal of the real estate market with broad strokes because real estate is about communities and the human condition within them. Even within cities there are different economic and societal conditions that affect how desirable different neighborhoods are. Even from one street to the next, values fluctuate with the condition of the homes, the aesthetics of the area and the homes. Driving through a neighborhood and seeing children out front playing can give a sense that the area is safe, families walking down a sidewalk holding hands can reflect a feeling of community togetherness, and noticing people gardening and painting the trim can cause us to feel a pride of ownership present in that area. And these are things that cannot be expressed in the one-size-fits-all assembly line that is national media.Right now, today, in every market across America there are people making money buying and selling real estate.

If a city has strong job growth and low unemployment then it will fare better than another city three states away that has high unemployment and the big steel mill that’s shutting down. Describing a national real estate market is akin to describing a global real estate market.

Salt Lake City right now has the best real estate market in it’s history. Last year prices rose around 15-20%, so it’s a good time to sell. And yet there is a good selection of homes on the market and prices are expected to rise about 10% this year so it’s a great time to buy. Good time to sell and good time to buy- that’s as good as it gets.

There are areas of Texas and New Jersey that are seeing hot real estate markets and great price increases, with many homes selling. There are areas all over the country that are seeing good activity in the real estate market, but you don’t see that in your national news. When the real estate market was supposedly “hot” the last few years- the national news fed the beast and real estate-related TV shows were springing up almost weekly because that’s what was selling at the moment. During that time Salt Lake City’s real estate market was slow and home’s weren’t appreciating or selling well.

This is also why Zillow can never be a true evaluator of a home’s worth. It’s just a set of numbers- just like the national real estate market is a bunch of averages- both make for good entertainment, but neither are credible enough that I pay attention to what they say.visit the site here

Everything You Need To Know About Mortgages

Fast Free Mortgage Quotes

"Everything You Need To Know About Mortgages"

Santa Cruz, CA. 4/30/2007 11:25 PM GMT (TransWorldNews)

Equity Advisors, Inc., a Santa Cruz based mortgage company announced today a new report entitled "Everything You Need To Know About Mortgages", based on feedback from their refinancing & new purchase mortgage clients.

"Many consumers come to us & they don't know the first thing about how the home loan process works," stated Claudio Perez a Sales Associate with Equity Advisors. "It was clear that many of our customers had similar concerns that we could address in a report format that would answer their questions & give them proactive steps on how to ensure they are getting the best loan product, no matter what lender they use."

This resourceful report includes:

How your credit score affects your monthlyt mortgage payment.

Education on the factors determining your credit score.

Do-It-Yourself credit repair tips to increase your score.

A short background on the "History Of The Mortgage Industry"

The advantages of working with a broker, as opposed to going directly to the bank.

Brief descriptions of different types of mortgages & payment options.

A general overview of the 'Home Loan Process'

Equity Advisors is also making the report available to Real Estate Agents & other professionals interested in insider information on how the home loan process works.

To request a copy call: 1-877-438-3789 or e-mail us at: info@equity-advisors.com. Equity Advisors, Inc. goal is to educated our clients, evaluate their short & long term financial goas & empower them to make the best decision when choosing a home loan.

About Equity Advisors

Equity Advisors, Inc. is a premier mortgage broker located in Santa Cruz County. We are a California based residential mortgage company that helps our clients achieve their financial goals through real estate equity management. We can be reached at: www.equity-advisors.com

Contact: Robin West, Equity Advisors, Inc. (831) 466-2130.