Benefits of Home Ownership: As Licensed Real Estate Broker and Agent, Molony Real Estate constantly trains on the tax benefits of home ownership. At Molony Real Estate, we are here to help you maximize your tax benefits. Use this information to help inform yourself of the advantages of purchasing, now rather than later. We also encourage you to share this information with your friends and family. Here are the IRS links that Molony Real Estate finds most useful. Here is a quick run-down of “why to buy”! Home Mortgage Interest Deduction (IRS Publication 936) Information for First-Time Homeowners (IRS Publication 530) Selling Your Home (IRS Publication 523) Moving Expenses (IRS Publication 521) Residential Rental Property (IRS Publication 527) Basis of Assets (IRS Publication 551) Record Keeping for Individuals (IRS Publication 552) |
Molony Real Estate 377 CLARK STREET PO BOX 194, Lodi, WI 53555 608-592-7306 & 608-445-8464 Website: MolonyRealEstate.com Email: molonyrealestate@Yahoo.com |
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Molony Real Estate, LLC 377 CLARK STREET PO BOX 194, Lodi, WI 53555 608-592-7306 & 608-445-8464 Website: MolonyRealEstate.com Email: molonyrealestate@Yahoo.com |
| W13237 Klamer Road, Lodi WI |
| Across from Lake Wis & the Wis River |
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| Need Property by Lake Wisconsin or the Wisconsin River? We can help find one for YOU! Please call for an appt 608-592-7306 Don't Wait! There's more! We Can Help! Just Call! 608-592-7306 |
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MolonyRealEstate@Yahoo.com 608-592-7306 Serving all of the State of Wisconsin MolonyRealEstate.com ***** We know Honest Bankers! ***** MOLONY REAL ESTATE RECOMMENDS: MORTGAGE TERMS AND INFORMATION: You can find Info Regarding: TOOLS & CALCULATORS for figuring payments and more: Mortgage Calculators Simple Mortgage Calculator Rent vs. Buy Calculator How Much Can I Afford? How Much Can I Borrow? Amortization Calculators Amortization Schedule and Calculator A Simple Amortization Calculator Miscellaneous Calculators How long until you become a millionaire? How wealthy are you? Mortgage Refinancing Calculators Mortgage Refinancing Calculator Mortgage Consolidation Calculator Financial Calculators I want to compare 3 different loans Generic Loan Calculator Debt Consolidation Calculators Debt Consolidation Calculator Debt Ratio Calculator Debt Payoff Goal Calculator |
Welcome to: MOLONY Real Estate, LLC MORTGAGE CALCULATOR |
- This lender still playing
with fire. Patrick McIlheran July 17, 2010
Don't worry, says the state agency that's running
radio ads about how you can get a home with
(almost) no cash. This time, they've got it all figured
out.
Sure about that?
The money window's back open, no place sooner
than in Wisconsin. The Wisconsin Housing and
Economic Development Authority, or WHEDA, shut
down its sort-of-subsidized-mortgages program in
2008 as the market for bonds made of bundled
mortgages crashed and the agency couldn't get
more money.
All better now: The federal Treasury gave federal
mortgage reseller Fannie Mae billions, so Fannie lent
$325 million to WHEDA, which is passing it through
banks to you if you haven't owned a house in three
years and have managed to save up pretty much
nothing. All you need is $1,000 for closing costs and
a middling credit score. No mortgage insurance
needed, either.
You'd think we'd all be cautious about loose lending,
but you'd be wrong. The Wall Street Journal reported
the other day that credit card lenders are again
wooing people fresh out of bankruptcy, since credit
scorers say they're better now at identifying bad
risks. Auto lenders are doing more business with
subprime borrowers. Then there's Fannie's low-cash
home loans, with state housing agencies on the
hook if borrowers don't repay.
But they'll repay, says WHEDA. Borrowers must
have credit scores of 680, on the high end of
"moderate." They must take a home-buying class.
They have to show three lines of credit with 12
months of repayment, says WHEDA head Antonio
Riley.
"We underwrite it with a much more stringent
standard," he said.
That's admirable, though predicting who will repay
is what everyone thought they had figured out
before the crisis, says economist Stan Liebowitz of
the University of Texas-Dallas.
Liebowitz, nationally prominent for his research on
what went wrong in the bubble, says the core
problem wasn't lending to obvious bad risks. Half of
all foreclosed homes had prime, not subprime,
loans, and his research found that things you'd think
were problems - "liar" loans, teaser rates - didn't
correlate with default. The strongest correlation was
lacking a down payment.
"It is inherently dangerous," he said, to discard down
payments. You're betting on someone's rosy future
while making it less likely.
First, people who can't scrape even a 3% down are
less likely to build up a financial cushion, says
Liebowitz. Cars fail, overtime gets cut, divorce
happens: If you couldn't save before squeaking into
a mortgage, "then how will you handle some
unforeseen event that's a drain on your cash?"
Second, getting a buyer into a house with almost no
down means his debt is about equal to the value of
the house. Fine, unless the house value falls. Such
"negative equity" was the best predictor of
foreclosure, and it creates a powerful incentive for a
borrower to walk away.
But housing prices likely won't fall much, for now.
We're probably at the bottom. Maybe. And if
WHEDA is strict about credit scores, said Liebowitz,
"that would be an improvement." WHEDA says its
loans historically had low delinquency rates - though
so have private mortgages in Milwaukee, a repaying
kind of town.
This sounds unnervingly familiar. Of course it's good
when renters become owners and gain a bigger
stake in communities and the economy. But the
imperative to extend homeownership pushed
housing agencies, especially Fannie Mae, to relax
old cautions. It doesn't help when Riley enthuses
that WHEDA's got another kind of loan coming out
this fall that "will help us go a little farther down the
credit score."
Government agencies set the tone, says Liebowitz.
As the bubble inflated, "the federal government tried
and succeeded in overturning the old-fashioned view
that it was important to show you could save
money before you could buy a house." The data
suggest that the old-fashioned view was right:
Borrowing for a house without a down payment is
playing with fire.
Which is one thing if it's informed borrowers and
foolish private lenders, but quite another when it's a
state agency using federal money to reopen the
kerosene superstore.
Patrick McIlheran is a Journal Sentinel editorial columnist. E-mail
pmcilheran@journalsentinel.com
Is Seller financing now
ILLEGAL in WI?
It appears that the Wisconsin
Legislature snuck their version of the
SAFE Mortgage Licensing Act into the
2009 budget, effectively making
seller financing illegal for 1-4
family buildings. Exceptions to this
rule are sellers who are owner
occupants, people who hold an
expensive mortgage broker license
and a few other limited exceptions that
will not effect most of us.
The effective date of the law was
1/1/2010.
(For more of this discussion click here)
ILLEGAL in WI?
It appears that the Wisconsin
Legislature snuck their version of the
SAFE Mortgage Licensing Act into the
2009 budget, effectively making
seller financing illegal for 1-4
family buildings. Exceptions to this
rule are sellers who are owner
occupants, people who hold an
expensive mortgage broker license
and a few other limited exceptions that
will not effect most of us.
The effective date of the law was
1/1/2010.
(For more of this discussion click here)
| Don't Get Flipped ("I can lower your monthly payment even more this time...") (Click Here for more Info) |
| Don't Become a Victim of a Foreclosure Rescue or Credit Repair Scheme! ("I can help you save your house from foreclosure.) (Click here for more Info) |
Changes to FHA Loans Take
Effect 10/04/10
Posted: 04 Oct 2010 05:42 PM PDT By: Alison Paoli, Zillow PR Specialist
Major changes to the Federal Housing Administration
(FHA) program. Below are the main changes and
what it means for homeowners looking to get an
FHA-backed purchase or refinance loan:
Upfront Mortgage Premiums: This is the
amount paid at closing to FHA to insure a
loan. Prior to today, FHA loans carried an
upfront mortgage insurance premium of
2.25% of the loan amount. Starting today, this
drops to 1.0%. However, since many FHA-
backed loan borrowers roll this upfront cost
into their loan amount, this impact may not
be widely felt.
Annual Mortgage Premiums: This is the
amount one pays each year towards their
mortgage insurance. It is typically paid
monthly. Prior to today, all loans — regardless
of the loan-to-value (LTV) ratio (the percent
one puts down) — were charged a mortgage
premium of 0.55%. Starting today, this rises to
0.85% for loans with an LTV of less than 85
percent and to 0.9% for loans with an LTV
that is greater than 95%. This change will be
felt by all borrowers due to an increase in
monthly payment.
Minimum Credit Score: Up until now, the
FHA did not have a minimum credit score it
would insure loans for but that has now
changed. The minimum credit score FHA
requires is 580. However, to even reach the
point of FHA approval the borrower must find
a lender who will accept their credit score. If a
borrower’s credit score is so low that a lender
won’t provide financing, it doesn’t matter what
the FHA minimum is.
The U.S. Department of Housing and Urban
Development (HUD) needed to make these changes
to the fee structure to help shore up the financial
reserves of the FHA. Because the FHA doesn’t make
loans but insures lenders against mortgage defaults,
the program has taken a big hit in recent years due to
high rates of foreclosure.
Effect 10/04/10
Posted: 04 Oct 2010 05:42 PM PDT By: Alison Paoli, Zillow PR Specialist
Major changes to the Federal Housing Administration
(FHA) program. Below are the main changes and
what it means for homeowners looking to get an
FHA-backed purchase or refinance loan:
Upfront Mortgage Premiums: This is the
amount paid at closing to FHA to insure a
loan. Prior to today, FHA loans carried an
upfront mortgage insurance premium of
2.25% of the loan amount. Starting today, this
drops to 1.0%. However, since many FHA-
backed loan borrowers roll this upfront cost
into their loan amount, this impact may not
be widely felt.
Annual Mortgage Premiums: This is the
amount one pays each year towards their
mortgage insurance. It is typically paid
monthly. Prior to today, all loans — regardless
of the loan-to-value (LTV) ratio (the percent
one puts down) — were charged a mortgage
premium of 0.55%. Starting today, this rises to
0.85% for loans with an LTV of less than 85
percent and to 0.9% for loans with an LTV
that is greater than 95%. This change will be
felt by all borrowers due to an increase in
monthly payment.
Minimum Credit Score: Up until now, the
FHA did not have a minimum credit score it
would insure loans for but that has now
changed. The minimum credit score FHA
requires is 580. However, to even reach the
point of FHA approval the borrower must find
a lender who will accept their credit score. If a
borrower’s credit score is so low that a lender
won’t provide financing, it doesn’t matter what
the FHA minimum is.
The U.S. Department of Housing and Urban
Development (HUD) needed to make these changes
to the fee structure to help shore up the financial
reserves of the FHA. Because the FHA doesn’t make
loans but insures lenders against mortgage defaults,
the program has taken a big hit in recent years due to
high rates of foreclosure.
The FHA 2/1 Buydown is a way to
reduce the interest “note rate” for the
first two years of the loan.
(Keep in mind, what ARM’s did to buyers).
An FHA 2/1 buydown is an option when
getting an FHA loan where you can “buy
down” the interest rate for a period of 2 years
by putting a lump sum of money into a
buydown account that will supplement the
payment schedule on the loan for 2 years.
The payment the borrower will pay in the first
year of the loan will be calculated on an
interest rate that is 2 percent lower than the
“note rate”. In the second year of the loan,
the payment that the borrower will make is
calculated on an interest rate that is 1% lower
than the note rate. After the first two years
have passed, the remaining 28 years of
payments are calculated at the note rate.
Although the 2/1 buy down is new, it is
considered by Bankers as a very useful
financial tool to convince people who think
their income will increase after a brief period
and want to “stretch a little bit to get into a
larger/nicer home” to get a larger mortgage
loan. (In other words, they will give you a low
interest rate for now, and on a certain date
you better get your raise, because the “note
rate” will go up at least double if not four times
higher than before.)
This 2/1 buy down is being pitched by
Mortgage Bankers to young borrowers or
those on a strong upward career path as a
“very advantageous tool”. (We advise against
it) 10/07/10
reduce the interest “note rate” for the
first two years of the loan.
(Keep in mind, what ARM’s did to buyers).
An FHA 2/1 buydown is an option when
getting an FHA loan where you can “buy
down” the interest rate for a period of 2 years
by putting a lump sum of money into a
buydown account that will supplement the
payment schedule on the loan for 2 years.
The payment the borrower will pay in the first
year of the loan will be calculated on an
interest rate that is 2 percent lower than the
“note rate”. In the second year of the loan,
the payment that the borrower will make is
calculated on an interest rate that is 1% lower
than the note rate. After the first two years
have passed, the remaining 28 years of
payments are calculated at the note rate.
Although the 2/1 buy down is new, it is
considered by Bankers as a very useful
financial tool to convince people who think
their income will increase after a brief period
and want to “stretch a little bit to get into a
larger/nicer home” to get a larger mortgage
loan. (In other words, they will give you a low
interest rate for now, and on a certain date
you better get your raise, because the “note
rate” will go up at least double if not four times
higher than before.)
This 2/1 buy down is being pitched by
Mortgage Bankers to young borrowers or
those on a strong upward career path as a
“very advantageous tool”. (We advise against
it) 10/07/10
Is Anyone Minding the Store at the
Federal Reserve?
http://www.consciousmedianetwork.com/video/2010/110610a.htm
This is a high quality version of the Financial
Services Subcommittee on Oversight and
Investigations hearing of May 5, 2009.
Rep. Alan Grayson asks the Federal Reserve
Inspector General about the trillions of dollars
lent or spent by the Federal Reserve and
where it went, and the trillions of off balance
sheet obligations. Inspector General
Elizabeth Coleman responds that the IG
does not know and is not tracking where
this money is. .
Federal Reserve?
http://www.consciousmedianetwork.com/video/2010/110610a.htm
This is a high quality version of the Financial
Services Subcommittee on Oversight and
Investigations hearing of May 5, 2009.
Rep. Alan Grayson asks the Federal Reserve
Inspector General about the trillions of dollars
lent or spent by the Federal Reserve and
where it went, and the trillions of off balance
sheet obligations. Inspector General
Elizabeth Coleman responds that the IG
does not know and is not tracking where
this money is. .
To Refi or Not – One Simple Test
FYI: If you need to lower your payment,
then this calc won’t help you. But for
those that are aggressively seeking
zero, as we say, this is a handy way to
figure out how best to get there...
(click here for more info)
FYI: If you need to lower your payment,
then this calc won’t help you. But for
those that are aggressively seeking
zero, as we say, this is a handy way to
figure out how best to get there...
(click here for more info)
| The Fed and Foreclosures November 28, 2010 Fed’s proposal would benefit the creditor who violated the law rather than the borrower, paving the way for foreclosures that otherwise could be avoided. |
Foreigners' Sweetener: Buy House, Get a Visa
By NICK TIMIRAOS
The reeling housing market has come to this: To shore it up, two Senators are
preparing to introduce a bipartisan bill Thursday that would give residence
visas to foreigners who spend at least $500,000 total to buy houses in the U.S.
By NICK TIMIRAOS
The reeling housing market has come to this: To shore it up, two Senators are
preparing to introduce a bipartisan bill Thursday that would give residence
visas to foreigners who spend at least $500,000 total to buy houses in the U.S.
The Cost of “No-Cost” Refis:
While this product has been around forever, you’re
hearing more about it now because so many consumers
want to take advantage of historically low mortgage rates
and do a refi, but can’t (or are reluctant to) come up with
the closing costs. And rightly so: Closing costs have gone
up nearly 9% this year over last, and can cost up to about
2% or even 3% of the loan. (For example, it would cost
$4,000 to possibly even $6,000 to close on a $200,000
mortgage).
While this product has been around forever, you’re
hearing more about it now because so many consumers
want to take advantage of historically low mortgage rates
and do a refi, but can’t (or are reluctant to) come up with
the closing costs. And rightly so: Closing costs have gone
up nearly 9% this year over last, and can cost up to about
2% or even 3% of the loan. (For example, it would cost
$4,000 to possibly even $6,000 to close on a $200,000
mortgage).