Is It Possible That Your Gender May Influence Your Home Mortgage Approval?

If you are applying for a joint mortgage on your property with your spouse or partner, the name that goes first could have more of an impact than you might think.

A 2010 study by the Woodstock Institute showed that mortgage lenders were inclined to show favoritism when men were the lead borrowers on joint applications. The study was undertaken within the Chicago area and it tracked joint applications for refinancing as well as home purchases. Over 250,000 applications were studied in the year 2010.

Surprisingly, the study showed that home purchase applications that listed the female partner as the primary borrower were 24 percent less likely to be approved.

When it came to mortgage refinancing, the application would be 39 percent less likely to be approved if a woman was in the primary position. The study was controlled in order to account for the size of the loan and the borrower's income.

What Does This Mean?

The researchers at Woodstock are still carrying out more studies and analyzing their findings, but they say the results so far are quite troubling. They theorize that the discrimination might be totally unconscious and a symptom of wider discrimination against women.

Many lenders have declined to comment, but Terry Francisco, President of Bank of America, claimed that there was no policy in the mortgage underwriting process that would differentiate based on the order of the applicants names in the documents.

The findings are not complete enough at the moment to draw any conclusions. Additional data will be collected, such as age, credit scores, property values and much more in order to provide a more full and complete picture.

Increase Your Chances of Getting Approved

Regardless of the findings of this study, there are a number of ways that you can make your mortgage application more likely to be approved no matter what your gender. Here are some tips to keep in mind:

• Don't change jobs right before applying. Lenders want to see financial stability, so it is better if you have been with the same employer for as long as possible.

• Repay your other debts, including your store cards, credit cards, overdrafts and more.

• Check your credit report. If there are any errors that are making your credit score lower than it should be, you may be able to correct them.

• Avoid making any large purchases on your credit cards while you are applying for a mortgage. When the lender looks at your credit, this could affect their calculations of your debt to income ratio.

To find out more about getting the best home mortgage approval to buy or refinance your property, please feel free to contact your trusted mortgage professional today.

The Best And Worst Times Of The Year To Sell Your Home

Does the time of year when you put your home on the market affect how well it will sell?  What about the final sales price?

According to many studies in housing trends, the answer is yes. The time of year when you sell your home can have an effect on how many people are interested and how much the home will sell for.

Of course, if you need to move and sell your home at any point of the year, you will still be able to find buyers and negotiate a price that works for you. In some areas of the country, the currently swift moving housing market can help overcome poor timing.

However, if you have the ability to plan for a more advantageous time, it makes sense to make the most of your flexibility.

The Best Times Of The Year To Sell A Home

One of the best times of the year to sell your house is in the late spring and early summer -- like right now.

The school year is over for most families, and many people will be looking to purchase a home that they can move into over the summer and get settled before school begins again in the fall. Housing sales peak during this time, as studies show that 60% of people tend to move during the summer.

If you can sell your home during the spring or early summer period, it will typically be on the market for a shorter amount of time and you may have many more offers to choose from.

The Worst Times Of The Year To Sell A Home

One of the worst months of the year to sell a home is December. There are a number of reasons why trying to sell a home during the Christmas holidays can be difficult.

Most people aren't thinking of moving this time of year. Their energies are focused on decorating their houses, preparing for the holidays, visiting friends and family and enjoying their time off work.

Another difficult time is the beginning of the school year, typically in September.

Children will have just started school and most families will not be considering moving at this point. If you attempt to sell your home during this time of year, you will be much less likely to get the the same pool of buyers that you might see in a more "move friendly" time of year.

Of course, these are just guidelines to help you plan your next home sale. No matter what time of year it is, if you need advice on selling your Plymouth home, call your trusted real estate professional right away. 

What's Ahead For Mortgage Rates This Week - July 8, 2013

Last week saw a relatively quiet week due to the 4th of July holiday, but there were some housing-related developments:

Monday: The Department of Commerce reported that overall construction spending increased by 0.50 percent in May to a seasonally adjusted annual rate of $874.9 billion. Residential construction grew by 1.20 percent, and May 2012 construction spending was 5.40 percent higher than in May 2012.

More spending in residential construction can indicate builder confidence in housing markets; added construction could help ease low inventories of available homes.

Tuesday: CoreLogic reported that May national home prices increased by 12.20 percent over May 2012, and grew by 2.60 percent in May including sales of distressed properties. Excluding distressed properties, home sales rose by 2.30 percent in May for a year-over-year increase of 11.60 percent.

States hardest hit in the economic downturn are showing good recovery; Nevada home prices rose by 26 percent year-over-year. While double-digit increases in home prices are good news, economists note that home prices remain approximately 20 percent below their peak in 2006.

Employment Data: More Jobs, Less Unemployment

Employment data are important for housing markets; employment is closely tied to home buyers' ability to qualify for mortgage loans. Last week ended with several important jobs related reports:

Wednesday: ADP reported that 188,000 private-sector jobs were added in June for the highest increase in four months. This number surpassed expectations of 160,000 new jobs and May's revised figure of 134,000 jobs added.

Freddie Mac's mortgage rates survey had some good news as average rates for a 30-year fixed rate mortgage fell from 4.46 percent to 4.29 percent with discount points also falling from 0.80 to 0.70 percent. Average rates for a 15-year mortgage fell from 3.50 percent to 3.39 percent, with discount points moving from 0.80 percent to 0.70percent.

Friday: The Labor Department released Non-farm Payrolls and the national Unemployment Rate for June. Non-farm matched May's level of 195,000 jobs added, which surpassed expectations of 155,000 jobs added. The unemployment rate remains at 7.60 percent, just over expectations of 7.50 percent.

The Federal Reserve has cited a benchmark unemployment rate of 6.50 percent as a criterion for raising the federal funds rate and reducing its current quantitative easing policy; this news may help slow mortgage rates as the Fed isn't likely to modify its programs based on the current unemployment rate.

Looking Ahead

This week's economic news includes today's report on consumer credit. Tuesday brings Job Openings for May, and Wednesday brings the minutes from the recent FOMC meeting. The minutes should clarify exactly what the committee discussed concerning quantitative easing and their plans for modifying it.

Thursday, Freddie Mac will release weekly mortgage rates. The federal government will release weekly jobless claims and will update the federal budget. The week's economic news will conclude with release of the Producer Price Index (PPI) and Core PPI for June, along with Consumer Sentiment for July.

Go Green By Faking It With Artificial Grass

The summer heat is starting to take its toll on you and your thirsty lawn. Homeowners spend hundreds of dollars every summer striving to grow healthy grass and keep it green.

If you're sick of trying to maintain a manicured lawn, then you can go green another way. Install artificial turf.

The Grass is Always Greener

Today's artificial grass is made out of polypropylene, nylon, or polyethylene threads that are sewn into a mesh backing that allows for water drainage. This is then usually laid on top of compacted gravel and tied down at the perimeter.

Modern artificial lawns can mimic many varietals of grass and some even have a thatch layer to give it a more realistic look.

Sick Of Maintenance

Homeowners have many reasons for wanting to be free of their demanding lawns, such as high summer water bills and the constant use of pesticides. With a fake lawn, you won't have to water, which is especially good for high-heat areas, you won't have to mow and you can quit worrying about how the weather will affect it.

Considering The Costs

While installing artificial grass can cost a bit up front, it'll be maintenance free for the next 15 to 20 years. You won't have to worry about water bills, purchasing grass seed, buying fertilizer or getting gas for the lawnmower, which can add up to a couple hundred dollars every year.

Potential Drawbacks

While a maintenance-free yard does have some appeal, there are a few drawbacks to take into consideration. Fake lawns don't absorb pet waste, so you have to hose them off regularly.

They can also heat up in direct sunlight. Planting shade trees will help with this issue. And, artificial lawns cannot be recycled, which is an issue that the industry is looking to remedy.

Saving water and reducing the use of pesticides is great for the environment. However, you have to like the look of artificial grass and make sure you're ready for the investment.

If you've been considering going green by switching to year-round green grass, talk with a local installer for grass options and cost comparisons.

7 Smart Tips To Painting Your Own Home This Summer

Winter may have taken a toll on your home's exterior this year. You've been noticing the cracking paint for months, but you don't want to shell out the big bucks to hire a professional painter.

Don't fret! With the weather warming and the nice summer weekends, it's the perfect time to tackle that project of painting your home.

While this might seem like an insurmountable task, especially if you have a multi-story home, it's not. It just takes the right tools and a bit of hard work. Below are step-by-step instructions to having the outside of your house looking shiny and new.

Test For Lead

Homes built before 1978 could have used lead paint, so be careful if you have an older home. They make kits that test for lead paint. If your home tests positive, then ensure you take the necessary precautions to keep yourself and your neighbors safe.

Scrub It Up

You need to wash the exterior of your home before painting. Mildew thrives under new paint, so kill it with a solution of water and phosphate-free cleaner.

Scrape And Sand

Take a scraper to your home's exterior to remove any peeling paint. Spraying water under the paint as you scrape helps speed up the process. Then sand down any rough spots, so that you have a smooth canvas.

Apply The Primer

Paint on the primer immediately after you've prepped the wood. This will provide and even base for your topcoat of paint.

Buy Some Caulk

You'll need to caulk all the joints to prevent water penetration and air leakage. Plus, caulk does a great job of filling in blemishes in your siding.

Pick Out Your Paint

Choose a water-based latex paint. It's easier than applying oil-based paints. However, if your home already has an oil-based paint, you'll have to stay with it. Once you've selected your favorite paint color, just grab a brush or rent a sprayer to start painting your home.

Maintain your exterior.

Be sure to check your home annually for any potential problems. Replace cracked caulk, remove mildew and patch any peeling paint before it spreads.

Utilize the beautiful summer weekends to get started on painting your home. Understand that this process normally takes two weekends, so be patient. Plus, by not hiring a professional, you'll save a significant sum of money and have bragging rights when you receive compliments on the condition of your home.

 

Liberate Yourself From Your Mortgage With This Simple Plan

What if you could accelerate the mortgage payment on your home so that you own your property several years earlier than your 15 or 30 year term?

Making your final mortgage payment and owning your house is an incredibly good feeling and there is a simple way that you can bring about that rewarding day much sooner.

By making one extra mortgage payment every year, you will be able to pay off your mortgage years earlier without putting a lot of stress on your present day finances. Although it might not seem like a lot, just one extra payment per year can help you to significantly reduce the length of your mortgage.

For example, if you have a 30 year mortgage with a fixed rate, it could be possible to pay off your loan in 25 years instead of 30 when you make an extra payment per year. You will also very likely be able to save thousands of dollars over the years in interest charges.

How to Fit the Extra Payment Into Your Budget

If you think that your budget is too tight to squeeze in the extra yearly payment, it's time to start thinking about what adjustments you can make. With a bit of clever budgeting, you can find the extra cash needed.

First of all, break the extra payment down by dividing it by 12. For example, if your monthly mortgage payment is $1600, you will need to save an extra $133 per month to be able to make a full extra payment every year. Or, you could think of it as $33 per week or $4.75 per day.

Surely you can survive on $4.75 per day less than you are spending right now, right?

There are many ways that you could find this extra money. It's the difference between eating at a restaurant or cooking at home once or twice per week, bringing home-brewed coffee to work in a thermos rather than going to the expensive coffee shop, or cancelling a cable TV package that you never watch. Take a look at your budget so that you can determine where you can cut your expenses.

Once you make your goal of an extra payment every year, not only will you see that the savings program was easier than you thought it would be, but you might decide to accelerate even more so that it will be even sooner when you have the satisfaction of owning your home.

For more information about the optimal plan for the mortgage on your Plymouth home, feel free to contact me by phone or email.

What's Ahead For Mortgage Rates This Week - July 1, 2013

The past week was active for economic news and mortgage rates. The aftermath of the Fed's indication that it may start dialing back its multi-billion dollar monthly purchases of Treasury and mortgage backed securities has sent mortgage rates to record highs.

If you're thinking of buying a home, this may be one last chance for finding the best deal on mortgage rates; meanwhile, home prices continue trending up as well.

Here's the scoop on last week's activity affecting real estate markets:

Tuesday's Case-Shiller Composite Indices for April demonstrate the momentum of recovery in many housing markets. As of April, national home prices had increased by 12.10 percent as compared to April 2012. April's reading also exceeded March's reading of 10.10 percent year-over-year.

FHFA released its home prices report for April and noted that the average price for homes with mortgages owned by Fannie Mae or Freddie Mac increased by 7.40 percent, which slightly surpassed the March reading of 7.20 percent.

The Department of Commerce released New Home Sales for May and reported 476,000 new homes sold on a seasonally-adjusted annual basis. This exceeded expectations of 453,000 new home sales and also surpassed April's reading of 454,000 new homes sold.

Wednesday brought the Gross Domestic Product (GDP) report for the first quarter of 2013. The GDP grew by 1.80 percent against expectations of 2.40 percent and the previous quarter's growth, also 2.40 percent.

Freddie Mac's Primary Mortgage Market Survey (PMMS) brought the days of bargain basement mortgage rates to a halt as average mortgage rates for a 30-year fixed rate mortgage moved from last week's 3.93 percent to 4.46 percent. Average rates for a 15-year fixed rate mortgage rose from 3.04 percent 3.50 percent. This was the largest weekly jump in mortgage rates in 26 years. 

Home buyers may also consider a 5/1 adjustable rate mortgage, which provides an average 5 year fixed rate of 2.74 percent.  The fixed mortgage rate converts to an adjustable rate after five years.

The National Association of REALTORS ® reported that Pending Home Sales in May rose by +6.70 percent to their highest level in 6 years.

Last week ended on a positive note with the Consumer Sentiment Index for June beating expectations of 83.0 and coming in at 84.1. May's reading was 82.1; higher consumer confidence is likely driving demand for available homes.

What's Ahead This Week

Next week's scheduled economic news includes Construction Spending due on Monday and the ADP private sector jobs report is set for Wednesday.

Thursday the financial markets are closed as we celebrate the July 4th holiday.

Friday brings the Department of Labor's Non-farm Payrolls Report and the National Unemployment Rate. If the unemployment rate stays steady at 7.60 percent, this may reduce fears that the Fed will start reducing its monetary easing program any time soon, which should help to slow the recent increases in mortgage rates.