Tulsa's Mortgage Market
A loan officer's perspective on the mortgage market in Tulsa, in Oklahoma and in the nation. Where home buyers and home owners can get information on financing their home in the Tulsa area or anywhere in Oklahoma.
Tuesday, November 8, 2011
Shaking Up Our Homes in Oklahoma
Tuesday, November 1, 2011
Rent Versus Buy Debate Revisited
How many times have you read a similar article about the pros and cons of buying a home versus renting. Of course, there are many points on each side of the debate that are very valid. Each point must also be evaluated by the audience on the merits to their own particular circumstances.
The attached document shows graphically where the numbers fall. It is based on the following variables: FHA 30 year fixed rate purchase loan, credit score of 640 minimum, normal property taxes and homeowners' insurance, property appreciation & rent increases of 2% per year. Most people stay in their homes 5 years but the longer term benefits after 12 years are also illustrated.
Even though the monthly payment of $919 is more than the expense of renting at $800, the amount of monthly expense is lower when buying when factoring in the tax deductibility of mortgage interest, mortgage insurance, and real estate taxes. Further, since the principal amount of your payment is actually going toward your equity, the net amount of your monthly housing expense is even less.
The home price used in the example of $125,000 would actually rent in a range of $1000 to $1200 per month. See? You can buy more house than you are renting now and do it for less money!
Most home prices in Oklahoma have remained very stable throughout the burst of the bubble in most of the rest of the country. There are some bargains out there and you should engage a REALTOR® to help you find those bargains.
But before seeking help finding a home, you need to find out how much you can afford. This leads to the best bargain in housing today. Rates continue to be at historic lows, and I will write in an upcoming post about the potential cost of waiting out the real estate market for the lowest home price possible.
Every person's situation is unique. As much as we would like things to be cut-and-dried, I can't recommend anything to any prospective buyer without first having some conversation about your needs, your goals and your circumstances.
Call today to get your self on the Path2Buy your new home.
Tim Epps
Sr. Loan Officer
Fairway Independent Mortgage Corp
918-528-4010
tim@myfairway.net
Friday, October 14, 2011
Appraisal Standards Change And This WILL Affect Your Next Mortgage
- Days On the Market
- Offering Price
- Sale Type
- Financial Assistance
- Site Area
- Property View
- Property Style
- Condition of the subject property
- Sale Date of Comps
- Quality of Construction (This is one of the biggest changes being made!)
- Basement and Finished Rooms Below Grade
- Appraisal Management Company Reporting
Home sellers will need to help their REALTOR with the gathering of some of the above data points. They need to make known what improvements, especially kitchen & baths, have been made and the costs of those improvements.
Home buyers and home owners taking advantage of the current rate market to refinance their home may face a longer lead time as these changes are put in place.
On a final note: Despite all of these changes, nothing takes the place of the Underwriter’s review in the process. It is ultimately the underwriter who is held responsible for insuring that the appraisal is acceptable and supports the value. There is a process that takes place once the appraisal is in that tests the appraiser’s result against an automated valuation model for QC purposes. If this process detects that there are other, potentially closer or more recent comps, it will red flag the appraisal data. The underwriter may then have to further investigate value through the use of a review appraisal or by getting additional information from the current appraiser. So, it’s never over these days until we have a firm commitment from the Underwriter. At Fairway, we have in-house underwriting so we can reach out if needed.
918-528-4010
Monday, March 28, 2011
It All Started with a Haircut...
Last August, the young lady cutting my hair and I were talking about weather, sports, life, etc. She told me she had moved here from Iowa to go to school. She and her parents missed each other and (unlike this clip) yada, yada, yada, wanted to be able to see more of each other. I told her that if they wanted to buy a home here, that I could refer a couple of REALTORS® who could help them find a home when the time was right.
Her mother called me the next day and we talked about how to get approved for a mortgage for a second home. Over the next 6 months and through difficult weather, they made various trips to Tulsa to see homes (and their daughter) with Cindy Roberts of Chinowth & Cohen Realtors.
Right to Privacy laws and my responsibilty to my clients prevent me from more detail, so... yada, yada, yada... They closed today on a home here in Tulsa!
The moral of the story is you never know who will be put in front of you and what there needs are unless you are available and open. Your next opportunity may come from anywhere, even a haircut.
If you are thinking about buying a home in the Tulsa area (or anywhere in Oklahoma), call me. I can help with long and/or short range planning on how you can get the best loan for a home here.
Tim Epps
Sr. Loan Officer
Fairway Independent Mortgage Corp
918-528-4010
tim@myfairway.net
Thursday, March 24, 2011
Renting Now? Start Paying Yourself "Rent"?
If you are renting a house or apartment now, take a few minutes to review this scenario.
Your rent expense of $800, $750 for rent & $50 for renters' insurance (you are insuring your property, aren't you?), will easily afford you a home of your own. The net payment on an FHA 30 yr fixed-rate mortgage for a $125000 home is only around $727 on the attached example. You can download a copy of this scenario here.
[Please note that I am always conservative with my projections. I have projected a rate slightly higher than today's market rate and also accounted for the increase in the FHA mortgage insurance premium which will take effect April 18]
Instead of paying someone else rent of almost $50000 over the next 5 years, why not pay yourself? When the tax benefits are considered, your net payment over the same 5 year period is less than $44000. Also, you will have built up almost $10000 in equity in your new home. The benefit grows even greater over more time.
Call me to get a customized scenario for you and ask how you can get on the Path2Buy your new home. Whether your looking now, or waiting 5 months or 5 years, it is important to understand that you will be ready when your time is right.
Tim Epps
Sr. Loan Officer
Fairway Independent Mortgage Corp
918-528-4010
tim@myfairway.net