Online report outlines alternatives to foreclosure for distressed homeowners in Fort Mill, Tega Cay, Lake Wylie, Rock Hill, Ballantyne, South Charlotte.

Fort Mill, SC CDPE-designated agent, Carmen Miller of Century 21 First Choice, has added to her HomesFortMill.com website, information describing several opportunities for homeowners to avoid the negative financial impact of foreclosure.  

This community resource is available at Fort Mill Foreclosure Avoidance defines foreclosure alternatives including short sales, loan modifications, and forbearance.

“It’s a concern to me that so few in our community know their options when they start to fall behind on mortgage payments,” Carmen Miller said.  “If they act quickly and get informed, they can make informed decisions to find financial stability.”

Foreclosure alternatives such as short sales—which now make up over one-third of real estate closings across the nation—are an increasingly popular way for both homeowners and lenders to minimize their losses in this tough economy.

“More lenders are realizing that they can save money in a short sale versus a foreclosure, and are more likely than they were three years ago to approve a short sale offer.” Carmen Miller said.  “This is good news for homeowners because they now have more options than ever.”

The CDPE designation Carmen Miller has provides real estate professionals with specific understanding of the complex issues confronting distressed homeowners.  Through comprehensive training and experience, CDPE-designated agents are able to provide solutions for homeowners facing financial hardship in today’s market.

Do credit inquiries hurt my score?

This is a great question and a common one!  Many potential home buyers are afraid to let a lender pull their credit report because they think it will drop their score.  This is actually a very harmful MYTH and let me explain why.

Mortgage lenders use a scoring formula developed by Fair Isaac called FICO score.  FICO ignores mortgage inquiries for the most recent 30 days prior to scoring!  In fact, even when looking more than 30 days back all inquiries made for a mortgage within a 45 day window are only counted as one inquiry.  This means that having your credit checked out for a mortgage is not harmful to your score immediately and have little to no long term impact.

This is important because when home buyers wait until they find a house to have their credit pulled, there are often surprises that hurt their chances of obtaining a loan or getting the best rate.

I just met with a couple a few weeks ago that wanted to buy a new home in the Tega Cay area.  They are very credit worthy but didn’t realize that there was an error on their credit report.  By coming to me early we identified the problem and within a few weeks they were able to clear it up… before needing to lock in a rate or close on a loan!

If you are thinking about buying or refinancing the FIRST THING you should do is have a lender pull your credit!  Most lenders will do this for free and you might save yourself a lot of time and money.

Olan Carder
Loan Officer
NMLS# 97565

8600 Sam Furr Road, Ste 250
Huntersville, NC 28078
Phone: 980-721-7478
Fax: 704-247-2601
ocarder@1asmc.com
www.charlottemortgageonline.com



As you are driving around York County, you may see from time to time a re-zoning hearing sign posted on undeveloped property.  I happened to see a re-zoning hearing sign on the corner of Pleasant road and Carowinds Blvd.  I thought it would be of interest to see what was posted online at the York County govt website about the zoning hearing.

It would appear that QuickTrip, a convenience store/gas station company,  needs to rezone the parcel to be able to build and operate their type of  business on the property. Here is the online information:

On April 4th 2011 The York County Planning Commission will hold a hearing for the following re-zoning request

REZONING APPLICATION OVERVIEW F OR CASE 11-02

APPLICANT: Brandon Forshee (QuikTrip Corporation) 205 Regency Executive Park Drive, Suite 306 Charlotte, NC 28217 PROPERTY OWNER(S): B & C Enterprises 1440 Hwy 55 East Clover, SC 29710

REQUESTED ACTION To rezone approximately 4.522 +/- acres from ID to BD-III

TAX MAP NUMBER 7230000048

LOT SIZE +/- 4.522 acres

LOCATION Intersection of Carowinds Blvd & Pleasant Road in the Fort Mill community

EXISTING SITE CONDITIONS AND LAND USE Vacant Warehouse/Commercial

COUNCIL DISTRICT One (1) David Bowman

Business Development District III General (BD-III). This district is intended to provide for areas within the county where “large scale” commercial and business development may occur. This district is designed to support county-wide or regional shopping centers, and business complexes of greater magnitude than permitted by the BD-I and BD-II Districts. This district is designed to accommodate a wide range of business and commercial uses, generally clustered for “cumulative attraction” and optimum accessibility.

Permitted uses (some of which may require site plan approval) within the BD-III zoning district include: automobile and boat service repair; broadcasting stations; car washes and detail shops; churches; commercial recreation establishments; commercial parking lots; general business services; lodges and civic clubs; marinas; mini-warehouses; motels and hotels; museums, art galleries, and libraries; personal service establishments; professional uses; recreational vehicle parks; convenience, primary, and secondary retail establishments; transportation service and facilities; and multi-family dwellings to include townhouses, apartment buildings, and condominiums. (For more detailed information, please refer to York County Zoning Code §155.161 & §155.162.)

Post From Loan Officer Olan Carder

This is always the million dollar question. I get asked more than anything else, “Where are rates? Where are rates going? What are rates about to do?”

This is a tough question for the average loan officer because although we deal with rates all day everyday, many loan officers don’t understand the economic factors that drive rates or frankly don’t have time to pay attention to it.

Fortunately I subscribe to a wonderful service that keeps me informed on these factors and world economic events. Although no one can predict for certain what the future may hold, I do get great predictions from well informed experts, and they are typically very accurate.

Right now they are advising folks to FLOAT their interest rate if they are closing within the next 30-60 days. Rates have been on a downward trend for the last month and until we see something major change in the economy or see a strong change in the trend the smart money is floating.

This means rates should stay the same or slightly improve over the next couple months. If you are in the process of buying a home or refinancing, please consult your lender directly for lock advise. Many lenders offer some kind of float down or rate protection which makes locking a no-brainer, so if you would like more info on that shoot me an email. I am always happy to help!

Olan Carder
Loan Officer
NMLS# 97565
Phone: 980-721-7478
ocarder@1asmc.com
www.charlottemortgageonline.com

Mortgage rates have increased slightly in the last couple months but overall, today’s rates are still affordable.

Here’s a brief  history of 30 year mortgage rates for the last 20 years.

In 1990, rates averaged 10.5%. Rates showed a steady decline year to year until 2004. Rates in 2003 where around 5.6% then jumped to6.4% in 2004. Rates declined again to 5.8% 2005. The roller coaster ride continued in 2006 when rates were up to 6.7%. Rates then began a slow decline through 2010. 

Recently rates dipped into the mid 4% range and are now back in the 5% range. Its hard to predict what rates will do in the coming year but rates are still low.

Call me for questions, market trends,  etc.

Carmen S Miller
Century 21 First Choice
Fort Mill, SC
803.322.3479
carmen@carmensmiller.com
homesfortmill.com
seetegacay.com
aboutfortmill.com
tegacaywaterfronthomes.com

The newly passed Frank Dodd Bill has a risk retention rule that states anyone originating a home loan must retain 5% in reserves against that loan. Basically Congress is requiring lenders to put a little more skin in the game. This sounds like it makes sense, but let’s take a closer look at what this might mean for the market and for homebuyers.

First of all, this rule applies to conventional loans only, not government insured loans (FHA, VA or USDA). The majority of loans written in the US are conventional, especially loans with a down payment of 5% or more. This new rule would force some lenders to stop offering conventional mortgages altogether which could in effect force more mortgages to go FHA. This is not good for the US taxpayer because FHA loans have a higher delinquency rate and the program loses money.

An amendment to the bill allows mortgages that fall under certain guidelines to be exempted from the 5% risk retention. These are called QRM or qualified residential mortgages. The problem facing us is that what “qualifies” a mortgage loan to be exempted has not been determined and Wells Fargo has written a letter to 6 Federal regulators saying that the standard should be only loans with a 30% down payment or greater.

If this is adopted as the standard it will basically mean most mortgage lenders in the US will stop offering conventional loans because almost no one can afford the 5% risk retention. Lenders do not typically make 5% when they originate a mortgage loan, so basically every loan a lender would write would cost them money until the loan was eventually paid off.

So, why would Wells Fargo write this letter? Because they are one of the only lenders in the world large enough to actually handle this and by doing they could gain a significant advantage in the market and maybe even drive some lenders out of business… real nice!

Will the consumer win? No… Because if one or two banks have a monopoly on a certain loan type do you think the pricing will better or worse? Do you think closing will take longer or be quicker? There is absolutely no scenario under which this works out well for the industry, the market or the consumer.

See my latest video

Mortgage Update  Tuesday December 14th 2010

Rates are on the move AGAIN! The MBS Market is down over 100 basis points again and rates are headed for or are already at 5%. I will keep you posted through the week.

Why are rate going up? The risk of inflation has increased which creates risk on the yield of the mortgage backed securities. This has caused the mortgage bond prices to fall.

There are two main factors in the global economy driving this fear of inflation. One is the extension of the US tax cuts which will keep the national debt high and China announcing they are taking measures to slow their economy to head of inflation. See my video for a detailed explanation.

If you want to be added to my distribution list, Register Now

Olan Carder

The Blood Bath Continues!

Ok guys, we have lost another 100 Basis Points today so in the last 48 hours we have lost 234 basis points int he mortgage bond market! I am not sure how to put that into perspective but HUGE is not nearly a big enough to describe it.

Most lenders are going to be quoting around 4.75% now on 30 year fixed. 5% isn’t far off…

I will keep you posted if anything changes.

If you have received this indirectly and would like to be added to my distribution list, Register Now!

Olan Carder

Loan officer Olan Carder with American Security Mortgage sent out a video today to real estate agents with a couple mortgage tips or recommendations. Here is recap of Olan’s message…

Olan’s first message is about potential home buyers. If you are waiting for the new year to make a home purchase decision or closing, you may want to know mortgage rates are inching up slightly. Olan sees momentum in the bond market to move rates up in the future. So you may want to consider locking in a rate now in case there a chance rates go higher the first of the year.

Another mortgage tip is about mortgage tax deduction if you closed on a home this year. Most know you can use your mortgage interest payment as a deduction at tax time. What you may miss is some or all of the upfront insurance premium costs or funding fee for government type loans, FHA, VA, USDA, are also tax deductible. Check with your tax consultant to see if you qualify for this type of deduction.

For more tips or questions, contact Olan Carder

Olan Carder

FHA has reduced the UFMIP and increased the annual MIP… what does this mean for your buyers? Is conventional the king again or is FHA still the best way to go for most first time buyers? See my Fort Mill Mortgage video update for Oct 2010.

http://youtu.be/c-JRCg4Ymtg

I meet with Liz Ciardi,  Home Mortgage Consultant with Wells Fargo Home Mortgage, this past week . She past on timely information about the Home Buyer Tax Credit that expires in April. The following is a summary of the Wells Fargo Home Mortgage Tax Credit information brochure:

Seize This Opportunity

Little time remains for you to take advantage of the Federal Home Buyer Tax Credit. Along with high affordability and low mortgage rates, tax incentives make now a great time for first-time and repeat buyers to purchase real estate. It also presents a good opportunity for sellers. Now is the time to make sure your home appeals to motivated buyers.

First-time Buyers

If you have not owned a home within the last three years, you may be eligible for a tax credit of 10% of the purchase price of your first home, up to $8,000.

Repeat Buyers

The tax credit program has some additional incentives for those who purchase another home. You may be eligible for a tax credit up to $6,500 if you have owned and occupied your current residence for five consecutive years during the last eight years.

There are limits on the highest income you can earn and still be able to qualify for the full amount of the tax credit. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this, but less than $145,000 can receive a partial credit. Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap, but less than $245,000 can also receive a partial credit. Qualifying buyers may receive the tax credit for properties with a maximum purchase price of $800,000.

Tax Credit vs.Tax Deduction

It’s important to consider that a tax credit is a dollar-for-dollar tax reduction, rather than a decrease in taxable income that would only save you a percentage of your deduction based on your tax rate. Better still, the tax credit is refundable, which means you can receive a check for the credit if you have little or no tax liability to offset.

To qualify for either of these tax credits, you need to act now! All contracts need to be in effect no later than April 30 and close no later than June 30, 2010.

Keep in mind the tax credit program includes a number of details and qualification guidelines; please consult your tax advisor for advice. Also, you may be able to benefit from other available housing-related provisions, such as funding for energy-efficient improvements. For more information or answers to specific questions, contact your trusted real estate professional today.

Click to see and download the Wells Fargo Home Mortgage Tax Credit Brochure Resource1[1]-1

Liz’s contact ifo:

Rates are at record lows, but do you qualify for those rates?

If you haven’t heard about these record low mortgage rates in Tega Cay, you might want to check into having the internet hooked up to that rock you’ve been living under.  The news is everywhere that mortgage rates are super low, but the real question is, “Can you qualify for them?”

It really doesn’t matter how great something is if you can’t get your hands on it.  That is one of the reasons why record low rates have not magically lifted this economy back to health.  Many people haven’t been able to refinance into a better situation because they can’t qualify.  Let’s take a look at why…

1. Home values have dropped in many areas.
2. Credit scores now affect what rate you get!
3. Loans people used to buy their home a couple years back, no longer exist!

If your home value has dropped below what you paid for your home, you are probably stuck.  Lenders are trying to make safer loans (the ultra-risky loans are what got us here) so they are not going to lend over the value of the home.  Fannie Mae and Freddie Mac has just issued new programs that help your current servicer to refinance your loan.  If you have a value problem, start with you current company.

Credit scores now have a huge effect on what rate you get.  If your score is below 740 you might now get the best rate, and if your score is below 700 you could be paying more than a point (1% of your loan amount) or more to get a good rate.  If your loan is $200K that means the same rate costs you $2,000 more… OUCH!  Have a lender pull your credit immediately and determine if your score is where it should be.  I offer a FREE credit analysis to my customers.

If you needed a “Stated Income” or “No Doc” to buy your house, you might be out of luck.  Have a lender review your financials to determine if you can qualify for a “full doc” mortgage.  Again, this is something I offer FREE of charge.

Hopefully you can take advantage of these record low rates, but one thing is for sure… the sooner you start the sooner you will find out!  Call Olan Carder at 980-721-7478 for more information or click here to visit my blog.

It does not look like mortgage rates are going to fall much below current record lows as lenders become flooded with refinances.

The Federal Reserve has been on a mission to get long term interest rates lower in order to help spur the economy.  One of the biggest areas of focus has been mortgage rates, with a promise of $500 Billion to purchase mortgage bonds.  This promise was just raised to $1.25 Trillion for 2009 alone!

One would think that with the Fed buying $1.25 Trillion worth of mortgages this year that rates might fall even lower than the already record lows,  but most analysts think that not.  The problem is that when lenders are paying overtime to try and process all the mortgage applications they already have, there is not much incentive to offer lower rates.

Many brokers have complained to me personally that it is taking 2-4 weeks to get their loan files underwritten by the big lenders right now.  That means that if you lock an interest rate for 30 days, your loan might not close on time and you might lose that rate lock.  The good news is that rates probably won’t be much higher so you can just lock again.

Most experts think rates will be between 4.75% and 5.5% for the remainder of this year, but I have not found anyone in the industry that predicts sub-4.5% rates.  If you want to buy or refinance you should get started right now to reduce the chances of delay.

Myers Park Mortgage is running 24-48 hours in underwriting right now.  Our processing systems have always allowed us to deliver superior service in this market and right now those same systems are keeping us weeks ahead of the competition.  If you would like more information please call Olan Carder at 980-721-7478 or visit me online at www.charlottemortgageonline.com.

Have you ever wondered what a “good” credit score looks like?

Read below to find out…

A “good” credit score is a very relative term because “good” means different things to different people.  I know mortgages, so although I have an idea of what a auto lender might think is a “good” score, I can tell you for sure what it takes to get a mortgage!

The current minimum score for most home loans is 620.  You will find a lot of information online that suggests FHA loans do not have a minimum and that is true.  The problem is that the lenders who provide the FHA loans have put their own requirements on top of what FHA requires.  It will be next to impossible to find a loan right now if your score is less than 620.

The original question was about “good” not minimum so let’s look at how your score can effect your terms.  Fannie Mae has come up with a pricing grid that determines an extra cost or lower cost based on your credit score.  I will give you a real life example so it is easier to see the true dollar costs…

If you were buying a home and the loan amount was $200,000 and you were putting 10% down, you would be charged the following based on your credit score:

720+ would be $0.00 extra charge but no discount
700-719 would be an extra $1,000 in cost
680-699 would be an extra $1,500 in cost
660-679 would be an extra $3,500 in cost
640-659 would be an extra $4,500 in cost
620-639 would be an extra $5,500 in cost
Below 620 would be an extra $6,000 in cost (if you can even get approved)

If you would like to know how to maximize your credit score so you can benefit from the BEST rates for mortgage loans, car loans and credit cards, please call Olan Carder at 980-721-7478.  You can also visit our partner company, HOPE USA, that specializes in credit education by clicking here.

Rates improved today after a sharp decline in stocks!

PRICING EXAMPLE:
I was able to lock in a customer today at 4.875% on a 30 year fixed mortgage.  The loan amount was $275,000 and it was a purchase loan for their primary residence.  They put 20% down and had a 746 credit score.  The APR was 5.023% and the origination fee was .875%.

The good news in this crazy market is that mortgage pricing yields are returning to normal after over a month of basically no difference between 5% and 6%!  Higher rates are once again offering more yield to the lender so low / no-cost loan options will be back available at decent rates.

Tomorrow might be a good day to lock in based on market movement.  There is a good chance rates will open very low tomorrow morning and could come back during the day.  If you would like more information on rates and your specific situation, please call Olan Carder at 980-721-7478.  You can also apply online at www.charlottemortgageonline.com.

The time of waiting for the “bottom” is past… now is the time to buy Real Estate!!

There has been a time for people with money to spend to sit on the sidelines and wait out the proverbial “storm” in the market.  Whether stocks or real estate the values have been in free-fall mode, and buying just didn’t make a ton of sense.  I believe that time is over and here’s why…

1. The affordability index for homes is at a record high!!!   This means houses have never been more affordable since we started keeping records on it!
2. Home sales have also hit record lows!  The Pending Home Sales index is at its lowest point since they started it too!  That means deals are out there right now.
3. Major analysts and investors are now surfacing saying the stock market is either at or very near bottom!  Consumer confidence (and therefore home sales) will go up as confidence increases.
4. Rates are still awesome!  You can lock in 30 year fixed rates in the low 5′s or high 4′s!
5. There is a $8,000 first time tax credit good only through Dec. 1st of this year.  Click here to learn more!

Considering all the evidence, there has truly never been a better time to buy a home.  If you have the money and credit to buy a house, WHY WAIT?  Homes are more affordable than ever and deals are everywhere!  Don’t wait until the market rebounds 10-20% and pay too much.  Get started now because buying a house takes time.  Get in line before the next boom.

Please call Olan Carder @ 980-721-7478 for more information about mortgage programs and rates.

Can 11th Grade Economics 101 predict mortgage rate trends… you bet!

I learned in high school about Supply and Demand.  When Demand is high the price will follow, and likewise when demand is low.  When Supply is high prices drop and right now there is a huge supply of mortgages being written.  When lenders make new mortgages they have to sell more mortgage bonds and right now lenders have an abundance of new loans from January.

What does our high school economics class teach us… if there is a huge supply of these mortgage bonds that need to be sold right now then price must go down.  If mortgage bond prices fall then rates go up.  Right now rates are on the rise and even though “Demand” is gotten them low and will keep them relatively low for a while, “Supply” is pushing them a little higher at the moment.

Where are rates today?

For a $250,000 loan I could offer 5.125% with an APR of 5.2576% on a Conventional 30 Year Fixed.  This would assume a purchase or refinance at 80% loan to value, credit score of 740 or better and a primary residence.  The origination fee would be 1.00% with no points.

There are many factors that go into a mortgage quote.  If you would like more information about getting a mortgage loan in Tega Cay or Charlotte please call Olan Carder at 980-721-7478.  You can also apply online by visiting my website at www.charlottemortgageonline.com.

If the economy is so bad, why did mortgage rates get higher this week?

We all know that a weak economy typically means lower mortgage rates, but it is not a direct relationship.  Mortgage rates are based on mortgage bonds and any financial instrument trades on both data AND fear.  If you were investing money into a bond that is backed by real estate and that real estate might lose value, you probably aren’t going to pay a premium for that bond.

People are nervous right now, and the future has not been this unclear for quite some time.  The last time the economy was this rough was the 80′s and the chart below shows US GDP growth over the past 60 years.

You can easily see that over the past 20 years things were a lot more stable and that created a great climate for investment.  Investing is basically gambling on what the future holds with the money you have today.  Investors now are finding it hard to predict future values because of the current instability.

Until the market stabilizes and investors have a more clear understanding of what the future holds, mortgage rates will remain volatile.

If you would like a quote for your specific situation please call Olan Carder today at 980-721-7478 or visit his website at www.charlottemortgageonline.com.

Obviously no one knows for sure what affect the stimulus plan will have on each sector of our economy.  The plan is not yet 100% in place and could still be modified or scrapped altogether, although it is unlikely at this point that some form will not be passed soon.  We can look into the general points of the plan and make some educated guesses about its affects and that is what I will attempt to do here.

#1.  Inflation

The bond markets as a whole leaped for joy at the promise of $500 Billion of Fed Reserve money being poured into mortgage backed securities; however when the figure was raised earlier this month the markets pulled back.  One reason is inflation.  Although right now inflation is not a key concern, long term thinkers worry that excessive government spending and debt could weaken the dollar and cause high inflation.  Inflation is BAD for mortgage rates.

#2.  Jobs

One the biggest factors effecting the housing market right now is unemployment.  People are afraid to buy a new home because they are worried about losing their job.  Most analysts or politicians, whether they agree with Obama’s plan or not, believe that it will create jobs, at least in the short term.  Job creation is GOOD for housing and mortgage rates.

#3.  Debt

How will this plan be paid for by the government?  More US Treasury bonds will have to be sold which should in theory hurt their price.  Typically US Treasuries and Mortgage Bonds run together but they have been competing more this past year.  If the US needs to sell more bonds they might have to offer higher yields and mortgage bonds might have to follow suit to compete.  The is BAD for mortgage rates.

#4.  Overall

Based on what I wrote above I think rates will stay low in the near future.  My best guess would be that rates should stay at 5.500% or better on fixed rates for the next 6 months.  I do believe that after that they will start to rise.  No one can predict the future but my guess is as good as any.  I pay attention to what is happening in these markets and this is what I see right now.

If you would like a rate quote for your specific needs, please give me a call at 980-721-7478.  You can also check out my blog at www.charlottemortgageonline.com.

Are you working with a mortgage “broker” or “banker”?

I am not a hater of your common mortgage broker, in fact I think Brokers have delivered fantastic rates and services in the past to certain markets.  Small business makes America great, and mortgage brokers are typically small local businesses.  Mortgage brokers have been writing a majority of the home loans in America for some time, but trouble is on the horizon…

Chase announced this week that Wholesale lending (for brokers) is being shut down.  Retail and correspondent lending is still alive at Chase however, and I think this offers us a unique glimpse into what is coming.  (retail is Chase lending you the money directly / correspondent is for mortgage bankers)

With extreme volume right now because of refinances, lenders are having issues funding the loans they have fast enough and managing huge pipelines.  Often they lock in millions of dollars in profitable loans, only to see rates improve 2 days later and those clients go somewhere else before the loans close and fund.

If lenders have issues, who are they going to allow those issues to effect first, their loan officers or the thousands of brokers that use them to fund their loans?  Obviously brokers are the most vulnerable in a volatile market because they have zero control or ability to fund loans.  They don’t have their own funds and therefore aren’t on the hook for them.

Mortgage Bankers are the mid-size lenders that fund their own loans and then sell the loans afterwards.  There companies are typically larger than brokers and control the processing, underwriting and funding of your loan.  These companies share more of the risk and therefore are more profitable to the giant lenders like Chase.

I believe mortgage banking represents the best of both worlds.  You get the personal touch and flexibility of the broker, and the security and service of a large bank.  That is why I have always works for a mortgage banker like Myers Park Mortgage.

If you would like to buy a home or refinance, please call Olan Carder directly at 980-721-7478.  Rates are still low!!