This blog has moved

This blog is now located at __FTP_MIGRATION_NEW_URL__.
You will be automatically redirected in 30 seconds, or you may click here.

For feed subscribers, please update your feed subscriptions to
__FTP_MIGRATION_FEED_URL__.

Prospective homebuyers struggling to scrape together a down payment could get a little help from a tax deduction
under consideration in Congress.
The tax break would allow homeowners to deduct the cost of private mortgage insurance charged by banks and
lenders when the homebuyer cannot amass a down payment covering 20 percent of the purchase price.
Homeowners can already claim a tax deduction for mortgage interest paid during the year. Homeownership
advocates said the mortgage insurance benefit could help younger homebuyers and lower−income families afford
a home.
“For first−time homebuyers, getting that initial down payment is usually the single highest hurdle,” said Kurt
Pfotenhauer, a senior vice president with the Mortgage Bankers Association.
The Mortgage Insurance Companies of America, an association representing the private mortgage industry, said
more than 12 million people who pay mortgage insurance could be helped.
The tax benefit would cover 5.5 million people who pay private mortgage insurance and 7 million homeowners
with Federal Housing Administration loans. The benefit starts to shrink for families earning $100,000 or more.
Senate tax writers worked the tax break, worth an estimated $600 million to homeowners over the next decade,
into a bill reducing taxes on American manufacturers. It is one of a long list of minor tax programs designed to
attract more support for a package of corporate tax reductions.
Other items include:
A new category of tax−exempt bonds that could be used by nonprofit organizations to finance purchases
of forest lands.
·
· A renewal of an expired tax deduction that allows teachers to recoup money spent on classroom supplies.
Steve Hoogenakker and his family, Teri Hoogenakker, Paul Hoogenakker, Kirsten Hoogenakker, and Gerrit Hoogenakker live in the Minneapolis area of Minnesota

Mortgage News
Real Estate Will Continue to Boom Despite Naysayer Claims

Table of Contents
Mortgage News
The Money Pit
Creative Cuisine
Street Smarts
Rates at a Glance
Did You Know?
Quote of the Day
Special Offer
Trivia Challenge
Book Review


Rates at a Glance

30-Year Fixed Mid 5's
15-Year Fixed Low 5's
7-Year Fixed* Low 5's
5-Year Fixed* Low 5's
3-Year Fixed* High 4's
T-Bill ARM
(Index: 3.680) High 4's
COFI ARM
(Index: 2.620) Low 5's
MTA ARM
(Index: 2.737) High 4's

The interest rates represented here are at one point.

*Amortized over a 30-Year period. Following its Fixed term, it converts to a 1-Year Treasury Bill Adjustable Rate mortgage for the remaining term of the 30-Year loan.


Did You Know?


Bruce Springsteen's
Born In The USA album was the first commercially released CD that was actually made in America.

Quote of the Day
"Never give up, for that is just the place and time the tide will turn."


-Harriet Beecher Stowe

Special Offer



Trivia Challenge



Thank You!
As always, we wish to thank our clients who have been kind enough to refer business to us. We appreciate the opportunity to provide excellent service to your family, friends, and co-workers.




In recent years, it's impossible to turn on the television or read the headlines without seeing a warning of impending doom. The media claims that the housing bubble is growing too big, and it's about to burst! This pessimism has sold a lot of news stories, but it has also created many false concerns for first-time and move-up home buyers as well as investors. We keep hearing about this horrible catastrophe, yet the real estate market continues to boom. Why is that? Because the media neglected to consider one very important factor that is driving our current economic recovery: demographics.

The real estate boom began when mortgage interest rates fell into the single digits, making housing much more affordable. While this certainly contributed to home sales, there are additional causes we can isolate. Dr. David Lereah is a best-selling author and the Chief Economist for the National Association of REALTORS® (NAR). In a recent interview, Dr. Lereah revealed, "The biggest factor that affects real estate today, and has made it immune to some cyclical changes in the economy, has been demographics."
The most significant and frequently mentioned demographic is the "Baby Boom" generation, which refers to children born in the years following World War II. Economic forecasting expert and author, Harry Dent, has written extensively about how property buying habits occur in a predictable fashion as a generation ages. From needing an apartment in college, to buying a starter home and eventually trading up to something larger, it is all cyclical. Since the Baby Boom generation is the largest so far, their impact has been far greater than the generations that preceded them.

Now that Boomers have moved into their top earning years, they continue to push the housing market to new levels. They are purchasing larger primary residences as well as vacation homes and investment properties. The statistics for 2004 reflect this trend, with 36% of home sales going toward second homes and 23% of sales going toward investment properties.

Demographic trends don't end there:
• Immigration - There has been a large influx of immigrants over the past three decades. According to Lereah, it typically takes at least a generation for immigrants to become fully active in the home buying market.
• Children of Baby Boomers - This generation is now in their twenties and looking to purchase their first homes.
• Retirees - While the demand for housing is expanding, the supply is decreasing. With advancements in medicine and treatments of disease, retirees are living longer. This means that they are occupying their homes for more years, which decreases the supply of homes available for purchase.
In addition to the demographic factors listed above, real estate has been a rewarding investment. Stocks and bonds have not performed as well as investors were used to, while real estate has exceeded expectations. In an uncertain world, people are more comfortable investing their money in property which will appreciate.

So if the current boom can primarily be explained by the factors we just discussed, how do we know whether it will continue?

Dr. Lereah says, "We are in the Golden Age of Real Estate." Even if the economy should slow and interest rates increase slightly in the coming years, the demand for houses is still strong. The biggest impact that such a change would have is to decrease the rate of price appreciation. While this may sound ominous, it really isn't.

The media likes to refer to the real estate boom in terms of bubbles and balloons. In keeping with that analogy, Lereah indicates that local markets may react to higher interest rates by letting some air out of the balloon. The double digit price appreciation we've been experiencing could decrease over the next year or two to a more typical 4-6% range. This is still a higher rate of return than found in the stock market, all things considered.

So if you are looking to purchase a second home or investment property, where might be a good location to focus your attention? Ideally, where the Baby Boomers are planning to retire. The demand for housing in these areas continues to grow. Over the past year, some of the highest price appreciation took place in the resort areas of Florida.

The next time you turn on the television or read the headlines, be secure in the knowledge that the sky is not falling.

Additional Resources:
Are You Missing the Real Estate Boom?: Why Home Values and Other Real Estate Investments Will Climb Through The End of The Decade - And How to Profit From Them - by Dr. David Lereah

If you'd like to receive a FREE 26-minute audio interview with David Lereah, call us today at 763-213-2410!


If you know anyone who is looking to buy, sell or refinance a home, please forward their name and telephone number to us. We will happily provide the same high level of service that we have provided to you. The greatest compliment you could possibly give us is the referral of your friends and family.



The Money Pit


Creative Cuisine

Ingredients:
2 cups sugar
3 Tbsp. Hersey®'s cocoa
1 cup milk
1 Tsp. vanilla
1 Tbsp. butter
2 heaping Tbsp. smooth or chunky peanut butter (Optional!)

Directions:
Prepare a cereal-sized bowl by greasing it with a small amount of butter. Set aside. In a medium pot, combine sugar, milk, and cocoa. Stir continuously over medium flame until mixture reaches "soft ball stage." (235°–240°F on a candy thermometer.) If you don't have a thermometer, place a small drop of mixture into a cup of cold water. If it forms a soft ball, it's ready for the next stage. Turn burner down to a low flame. Add butter, vanilla, and the peanut butter (if desired). Stir mixture until it begins to harden. Remove from burner, and pour into the greased bowl. Place in fridge to harden and enjoy!


Street Smarts
Spammers are Phishing for You: How to Identify Fake Emails
Spam is the virtual junk mail that clogs your in box each day. Some of these emails are easy to spot, with their promises of discount prescriptions, miracle investments, and "dating" offers that could make Hugh Hefner blush. Others are more dangerous, appearing to come from legitimate banks, credit card companies, or internet service providers. This type of scam is known as "phishing" and often fools consumers into giving out passwords, credit card numbers, and other sensitive information. How can you protect yourself? Watch out for these warning signs:
The salutation is generic. If the message opens with Dear valued member or something similar, rather than your full name, it could be a fake email.
Typos and misspellings. If the email has obvious errors, it is not legitimate. By misspelling or leaving out words, these messages are less likely to be caught by spam filters.
It's urgent that you take action immediately! By threatening dire consequences if you don't respond right away, spammers are hoping you won't take the time to examine the email and discover that it is fraudulent.
Click this link to update your information. Links included in spam do not always take you to the site they claim they will. Frequently the address is very close to that of a real site but is missing a letter or has a hyphen inserted. (For example, www.micosoft.com or www.verify-microsoft.com) If you are using Outlook, you can place your pointer over the link and a window will pop up, revealing the actual website address that the link will open.
The safest way to protect yourself is to view incoming email as you would a telephone solicitation. Don't believe everything you hear, protect your financial information, and be selective when giving out your email address.

This newsletter is published quarterly by Steve Hoogenakker at MrHomeLoan / ATM mortgage. Feel free to share it with your family, friends, and co-workers.

Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included.
The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.
About the Author
Steve Hoogenakker
ATM Home Loan - MrHomeLoan
Phone: 763-213-2410
Fax: 763-546-1812
steve@MrHomeLoan.com
http://www.MrHomeLoan.com www.loantoolbox.com

Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included.
The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.
About the Author
Steve Hoogenakker
ATM Home Loan - MrHomeLoan
Phone: 763-213-2410
Fax: 763-546-1812
steve@MrHomeLoan.com
http://www.MrHomeLoan.com www.loantoolbox.com

Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included.
The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.
About the Author
Steve Hoogenakker
ATM Home Loan - MrHomeLoan
Phone: 763-213-2410
Fax: 763-546-1812
steve@MrHomeLoan.com
http://www.MrHomeLoan.com www.loantoolbox.com

Credit Tips That Will Score Lower Interest Rates
A good credit score translates into lower interest rates for home-shopping borrowers. In a mortgage lender's eyes, the higher your score is, the less risk you are, and the more likely it is you will pay off your debt. For this reason, borrowers with lower scores usually end up paying higher interest rates on their loans.If this is you, don't panic. There are a number of things you can do to adjust your credit score to receive a favorable review from the underwriter. Here are a few suggestions:Should I pay off all my past due balances and charge-offs?
This is usually a good idea, but you only need to worry about the past due balances and charge-offs that have occurred in the last two years. Items more than two years old have little effect on your current credit score. In fact, if you pay off delinquent items over two years old, it can actually bring your credit score down - something you don't want to do. Bringing that score up means you'll get a better interest rate on your loan.
Should I close existing credit card accounts that I don't use?No. Part of your credit score is based upon credit history. If you have old credit cards that you don't use very much, you still have the benefit of the credit history they represent.Rather than trying to pay off all your credit cards, you can move part of the debt from one card to another to even out the distribution of debt. Try to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home. Also, if your credit provider will increase your line of credit, the ratio of debt to available credit is automatically reduced.When married couples have separate credit card accounts, the debt can be transferred from one spouse to another to clear up credit issues for the other spouse. That spouse with clean credit can be designated as the sole borrower on the loan, but ownership of the home can still go in both names.What about errors on my credit report?If you have items that are showing up on your credit report that you know you have already paid, request that these items be removed by the credit bureau. They are obligated to rectify this within 30 days.If there are items on your credit report that are less than two years old, send in your payment if possible and mark the back of the check with the following notation: "Accepting this check is evidence that the transaction is complete and this charge will be deleted from my credit record." If necessary, the cancelled check will be proof that this should be promptly removed from your credit report if it interferes with the closing of your loan.
Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.About the Author
Steve Hoogenakker ATM Home Loan - MrHomeLoan Phone: 763-213-2410Fax: 763-546-1812 steve@MrHomeLoan.comhttp://www.MrHomeLoan.com www.loantoolbox.com

What Lenders Look for in Home Loan Applications
Once your loan application is filled out and sent to the lender for review, the first thing they will look for is your ability to payback the loan you are requesting. My team and I have a streamlined loan process to help you get your ducks in a row prior to this review. A grand slam loan package is in perfect order and answers all the important questions up front. We know what the lenders are looking for, based on long-term relationships with them and extensive knowledge of guidelines for a multitude of loan programs that are available today.

What is the lender looking for when they review the loan application?

The lender wants to know about your personal financial picture, including savings and credit history and your employment stability. The co-borrower's history is also taken into consideration. The lender also considers the loan amount and appraised value of the home you are looking to purchase. Not every applicant is approved the first time through the process. If the underwriter has any questions or concerns, he or she will require certain conditions be met before they approve the loan. Pre-approval prior to house hunting lets you know exactly how much you are qualified to borrow in advance.

What can I do on my end to make it easier?

Before taking out a home loan it helps to establish a consistent record of paying your bills on time. If you have utility bills that are overdue, bring these up to date. Make sure you are paying credit card installments in a consistent and timely manner.

We can help you evaluate your debt-to-income ratio to determine what mortgage payment will be comfortable and affordable for you on a monthly basis. Aim for having enough savings to cover your down payment, closing costs if necessary, and two month's expenses in case of emergency. We'll help you find the loan program that works for you.

If I just started a new job six months ago, can I still apply for a loan?

A stable employment history is important, but the lender does take human factors into consideration. If you've recently completed college or vocational training, or were released from the military, you have good cause to have a lack of consistent work history. If your profession is seasonal, and gaps in employment are normal in your field, there are loan programs that can work with your situation. If you are a freelancer or do contract work, the lender will look for consistency in income over the last two years.

Consistency is the key word in the lender's mind. But know that lenders have developed many different loan structures to meet the needs of the general public. When your grandparents bought their first home, they probably put 50% down and made a lump sum payment when the note was due. Times have changed, and so have loan programs. My team and I stay on top of current mortgage trends. We monitor rates daily and have a support network of Realtors®, CPAs, Financial Planners and Credit Repair Consultants to lend you additional assistance.
About the Author
Steve Hoogenakker
ATM Home Loan - MrHomeLoan
Phone: 763-213-2410
Fax: 763-546-1812
steve@MrHomeLoan.com
http://www.MrHomeLoan.com www.loantoolbox.com

Publisher’s Directions: This article may not be freely distributed without the written consent of Steve Hoogenakker or LoanToolbox.
The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages.

Credit Tips That Will Score Lower Interest Rates A good credit score translates into lower interest rates for home-shopping borrowers. In a mortgage lender's eyes, the higher your score is, the less risk you are, and the more likely it is you will pay off your debt. For this reason, borrowers with lower scores usually end up paying higher interest rates on their loans.If this is you, don't panic. There are a number of things you can do to adjust your credit score to receive a favorable review from the underwriter. Here are a few suggestions:Should I pay off all my past due balances and charge-offs? This is usually a good idea, but you only need to worry about the past due balances and charge-offs that have occurred in the last two years. Items more than two years old have little effect on your current credit score. In fact, if you pay off delinquent items over two years old, it can actually bring your credit score down - something you don't want to do. Bringing that score up means you'll get a better interest rate on your loan. Should I close existing credit card accounts that I don't use?No. Part of your credit score is based upon credit history. If you have old credit cards that you don't use very much, you still have the benefit of the credit history they represent.Rather than trying to pay off all your credit cards, you can move part of the debt from one card to another to even out the distribution of debt. Try to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home. Also, if your credit provider will increase your line of credit, the ratio of debt to available credit is automatically reduced.When married couples have separate credit card accounts, the debt can be transferred from one spouse to another to clear up credit issues for the other spouse. That spouse with clean credit can be designated as the sole borrower on the loan, but ownership of the home can still go in both names.What about errors on my credit report?If you have items that are showing up on your credit report that you know you have already paid, request that these items be removed by the credit bureau. They are obligated to rectify this within 30 days.If there are items on your credit report that are less than two years old, send in your payment if possible and mark the back of the check with the following notation: "Accepting this check is evidence that the transaction is complete and this charge will be deleted from my credit record." If necessary, the cancelled check will be proof that this should be promptly removed from your credit report if it interferes with the closing of your loan. Call me directly for a free consultation. Steve Hoogenakker ATM Home Loan - MrHomeLoan Phone: 763-213-2410 Fax: 763-546-1812 steve@MrHomeLoan.com http://www.mrhomeloan.com/ Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included. Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.About the Author

Why Refinance Back into a 30-Year Loan?
Refinance Your Mortgage for Rate and Payment Reductions
By Steve Hoogenakker – President
ATM Financial Services – MrHomeLoan.com
Minneapolis, Minnesota – One of the biggest reasons homeowners refinance their mortgage is to obtain a lower interest rate and lower monthly payments. By refinancing, the borrower pays off their existing mortgage and replaces it with a new one. This can often be accomplished with a no-points no-fees loan program, which essentially means at “no cost” to the borrower.
In the no-points no-fees scenario, the mortgage consultant uses rebate monies paid by the lender to pay off non-recurring closing costs for the borrower. These are “one time” fees such as escrow or attorney fees, title insurance, document preparation, tax service, flood certification, processing and underwriting fees, etc. The borrower is still responsible for recurring fees such as interim insurance, property taxes or insurance policy payments.
Refinancing typically occurs when mortgage interest rates drop significantly, but borrowers with recently improved credit scores (from paying off credit card debt, making mortgage payments on time, etc.) are often candidates for better interest rates as well. If you haven’t checked your credit score in a while, it’s a good time to call a mortgage consultant.
The question most asked is, “But why should I go back into a 30-year loan?”
There are two schools of thought on this subject, and the mortgage consultant should work hand-in-hand with the borrower’s financial planner to determine what works best for their mutual client.
One option is to take the route of the “same payment” refinance, and actually pay off the loan faster and save money on interest fees in the long-run. If refinancing results in a lower monthly payment, the borrower can still continue making the same payment they made in the original loan, and the extra money will be applied to the principal balance.

For example: Let’s say you have 25 years remaining in your current loan, and you refinance back to a 30-year loan with a slightly lower interest rate, resulting in a payment reduction of $200 per month. (Note: This is just an example. The actual amount could vary.) You could then take that extra $200 per month and apply it toward the principal on the new loan. At this rate, the loan will be paid off in 22 years and 4 months, which is 2 years and 8 months less than the original loan.

On the other hand, if the borrower’s financial planner is a proponent of best-selling author and investment guru Douglas Andrew’s philosophies (see Missed Fortune), he or she may suggest investing the extra money in a side-fund that could earn a better rate of return and grow to the amount of the mortgage (and beyond) in even less time. This method provides excellent liquidity, but having more direct access to this money may be too tempting for some homeowners.

Regardless of the reason for the refinance, the mortgage consultant will need to know what the existing loan scenario entails, review the homeowner’s long-term goals, and provide a comprehensive spreadsheet that compares and contrasts the various loan programs available.
Bear in mind, refinancing to obtain a lower interest payment could also result in a lower deduction at tax time. The homeowner’s mortgage consultant and financial planner should work hand-in-hand with their mutual client’s best interest in mind.



Steve Hoogenakker is affiliated with ATM Financial, a Licensed Broker, Minnesota Department Commerce. Hoogenakker hosts Home Buyer’s Seminars which are open to the public on the 3rd Tuesday of the month at the Plymouth office. from 7:00 p.m. to 8:30 p.m. Seating is limited. To reserve your seat at the next event, call [763-213-2410 to RSVP and obtain a free copy of Steve Hoogenakker’s Home Buyer Handbook.


# # #


SUBMITTED BY:
Steve Hoogenakker
Phone 763-213.2410
Fax 763-479-0433
E-MAIL steve@MrHomeLoan.com
Website www.MrHomeLoan.com

Five Reasons to Refinance Your Mortgage
There is an old adage in the mortgage business that states that if you can improve your interest rate by at least two percentage points, then it is a good time to refinance. While that may work as a general rule of thumb, the truth is that there are many reasons to refinance. Here are a few:

Lower your interest rate.
Securing a lower interest rate is one of the top reasons for refinancing. This can make a big difference in your monthly out-of-pocket costs for housing and save money on financing fees.

Build equity faster.
If you are in a position to make higher monthly payments due to an increase in salary or other good fortune, you may want to switch from a 30-year loan program into a 15- or 20-year loan structure. This enables you to build equity faster and save a tremendous amount of money on financing fees.

Change your loan program.
Some homeowners who start out in an Adjustable Rate Mortgage (ARM) find that they would like to switch to the stability of a Fixed Rate mortgage at some point. An ARM may have been the most attractive rate and loan package when you first financed your home, but we can provide you with loan comparison charts to find out if you can save money with another type of loan program that might work better for you right now.

Credit score has improved.
If your credit score has improved as a result of making your mortgage payments on time and in full, you may be in a position to take advantage of your improved credit standing. We can review your current credit score, the terms of your existing mortgage, and review options for other loan programs that could not only reduce your monthly payment, but also save you money on interest fees paid over the life of the loan.

Use the equity you have established.
A cash-out refinance allows you to tap into the equity you have built up in your home. You may want to pay off revolving credit card accounts, send a child to college, or use the money for home improvements or personal expenses.

Regardless of your reasons for wanting to refinance your existing mortgage, my team and I are interested in helping you make a decision that works best for you. We present our clients with spreadsheets outlining the various programs available. We continually monitor rates and alert our clients of interest rate changes in order to inform them of the best time to refinance.

We will also review the terms of your existing mortgage program. It is important to consider whether or not you have a pre-payment penalty written into your existing loan, and what the purpose of the refinance is. It is also important for us to know how long you plan to stay in the home. This helps us to determine whether or not it is beneficial for you to pay points up front to secure a lower interest rate on your new financing. The lender will want to know what the current property value is, how much equity you have built up, and what your current credit score is.
Steve Hoogenakker
President
ATM Home Loan - MrHomeLoan
Phone: 763-213-2410
Fax: 763-546-1812
steve@MrHomeLoan.com
http://www.MrHomeLoan.com
Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included.

Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.
About the Author
Steve Hoogenakker provides a solid, common sense approach to solving problems and answering questions relating to consumer loan products. His website seeks to provide free online resources for the consumer, including rate-watch, tips and articles, financial communication, news, and links to products and services. Visit: www.MrHomeLoan.com, or you can email Steve at Steve@MrHomeLoan.com
Steve Hoogenakker 5820 74th Avenue N. #100 Brooklyn Park, MN 55443 763-546-1414