2020 Forecasts in Real Estate and Mortgage Rates

~ Carolyn Warren ~ Leave a comment

All the experts have weighed in with their predictions for 2020. Here is a quick summary of the consensus.

MORTGAGE INTEREST RATES will remain low and fairly flat with daily and weekly ups and downs according to the market.

The 30-year fixed rate for people with excellent credit (740+ score) is slated to be about 4%, but if you go to a mortgage broker instead of a direct lender, you may be able to get 3.75%. This is because brokers shop wholesale for you, which is a big advantage over direct lenders’ retail rates. APR (annual percentage rate that factors in certain costs) would be about 3.85% or 4.125%. APR will vary according to fees and interpretation of the APR law.

HOME REAL ESTATE VALUES will increase moderately, partly because the low interest rates makes for more affordability. In many areas, there is an increased population of home buyers, which also drives up prices.

Spring is the most popular time to buy and sell real estate, so if you purchase a home now in winter, chances are that you will pay less than if you wait a few months.

BOTTOM LINE FOR YOU is that now is an excellent time to become a home owner. Or, if you already own a home, it’s an excellent time to move into one that is more suitable to your needs. You can get great loan pricing and increase your wealth through real estate.

Have a wonderful and prosperous 2020. Happy New Year!

 

New Year’s Resolution: Build Better Credit

~ Carolyn Warren ~ 1 Comment

Is 2020 going to be your year for better credit? Will you buy a home in 2020?

If so, here is a list to get you started in the right direction.

BETTER CREDIT IN 2020

  1. I will pay all bills on the same day they come in.
  2. I will set auto-pay dates for earlier than the last date (when errors can cause an unfair late payment).
  3.  I will keep all credit card balances below 50% of the limit at all times.
  4.  I will buy only what I can afford to pay in full when the bill comes. (No more carrying balances and wasting precious money on interest.)
  5. I will not engage in so-called “retail therapy” or shopping out of emotion, which is an unhealthy financial habit.
  6. I will not take a loan with a finance company.
  7. I will not do any type of business with a “payday” type of loan.
  8. I will have credit in my own name and remove myself from piggyback credit on parents or strangers.
  9. I will remove myself from co-signed loans. I will not co-sign for anyone, ever, for any reason.
  10. I will take joy in nature, friendships, family, and God rather than in material possessions that I cannot truly afford.

Have a happy and blessed New Decade!

 

New Fee Schedule for VA Loans in 2020

~ Carolyn Warren ~ 2 Comments

Below is the chart for VA loans closing between 2020 and 2028.

Most VA loans have a funding fee that is rolled into the loan.

Veterans who received a Purple Heart and veterans who were disabled during service pay no funding fee.

The percentages are based on the loan amount. For example, if you purchase a $300,000 home with zero down, and you are using your VA benefit for the first time, the funding fee is 2.3% of $300,000 = $6,900.

Therefore, your loan will be $306,900.

Here is the chart for the VA Funding Fee 2020:

The Authentic Christmas Story

~ Carolyn Warren ~ 4 Comments

Jesus Is Born

2 At that time the Emperor Augustus ordered a census of the Roman Empire. 2 This was the first census taken while Quirinius was governor of Syria. 3 All the people went to register in the cities where their ancestors had lived.

4 So Joseph went from Nazareth, a city in Galilee, to a Judean city called Bethlehem. Joseph, a descendant of King David, went to Bethlehem because David had been born there. 5 Joseph went there to register with Mary. She had been promised to him in marriage and was pregnant.

6 While they were in Bethlehem, the time came for Mary to have her child. 7 She gave birth to her firstborn son. She wrapped him in strips of cloth and laid him in a manger because there wasn’t any room for them in the inn.

Angels Announce the Birth of Jesus

8 Shepherds were in the fields near Bethlehem. They were taking turns watching their flock during the night. 9 An angel from the Lord suddenly appeared to them. The glory of the Lord filled the area with light, and they were terrified. 10 The angel said to them, “Don’t be afraid! I have good news for you, a message that will fill everyone with joy. 11 Today your Savior, Christ the Lord, was born in David’s city. 12 This is how you will recognize him: You will find an infant wrapped in strips of cloth and lying in a manger.”

13 Suddenly, a large army of angels appeared with the angel. They were praising God by saying,

14 “Glory to God in the highest heaven,
    and on earth peace to those who have his good will!”

15 The angels left them and went back to heaven. The shepherds said to each other, “Let’s go to Bethlehem and see what the Lord has told us about.”

16 They went quickly and found Mary and Joseph with the baby, who was lying in a manger. 17 When they saw the child, they repeated what they had been told about him. 18 Everyone who heard the shepherds’ story was amazed.

19 Mary treasured all these things in her heart and always thought about them.

20 As the shepherds returned to their flock, they glorified and praised God for everything they had seen and heard. Everything happened the way the angel had told them.

GOD’S WORD Translation (GW)Copyright © 1995 by God’s Word to the Nations. Available here.

How Long Can a Creditor Collect on Debt?

~ Carolyn Warren ~ 3 Comments

There are four categories of debt:

  1. Oral Agreements
  2. Written Contracts (medical debt, typical collection accounts)
  3. Promissory Notes (car loans, student loans, installment loans)
  4. Open-ended accounts (credit cards)

Each state has it’s own law that dictates how many years a creditor may collect. It’s also called the Statute of Limitations.

However, even if a debt is past the legal date, bottom-feeding collectors will persist in trying to get money out of you. That’s why it’s good to know the law in your state.

Credit card debt statute of limitations, by state

State Years State statute Source
Alabama 3 years Title 6 Ch.2 Sec. 37 State law
Alaska 3 years 9.10.053 State law
Arizona 6 years HB 24121 State law
Arkansas 5 years 4-3-118 State law
California 4 years Code of Civil Procedure S.337 State law
Colorado 6 years Colorado Revised Statutes Title 13 S.80-103.5 State law 2
Connecticut 6 years Chapter 926 Sec. 52-576 State law 3
Washington, D.C. 3 years 12-301 D.C. code 4
Delaware 3 years Title 10, Sec. 8106 State law
Florida 5 years4 95.11 State law
Georgia 6 years5 9-3-24 State law
Hawaii 6 years 657-1 State law
Idaho 5 years 5-216 State law
Illinois 5 years7 Code of Civil Procedure 5/13-205 State law
Scroll to 735 ILCS 5/13-205
Indiana 6 years Title 34 Art.11, 2-9 State law
Iowa 5 years Ch. 614.1.4 State law See note.14
Kansas 3 years 60-512 State law
Kentucky 5 or 15 years 413.120 and 413.090 Conflicting state laws 12
Louisiana 3 years Civil Code Sec. 2 Art. 3494 State law
Maine 6 years 14-205-752 State law
Maryland 3 years Section 5-101 State law
Massachusetts 6 years General Laws Part III Title V Ch. 260-2 State law
Michigan 6 years Ch. 600.5807.8 State law
Minnesota 6 years Civil Procedure Ch.541.05 State law
Mississippi 3 years 15-1-29 State law
Missouri 5 years Ch. 516-120 State law
Montana 8 years 27-2-202 State law
Nebraska 4 years 25-206 State law
Nevada 4 years 11-190 State law
New Hampshire 6 years 382-A:3-118 (g) State law
New Jersey 6 years 2A:14-1 State law
New Mexico 4 years 37-1-4 State law
New York 6 years Civil Practice Law & Rules, 2-213 State law
North Carolina 3 years Civil Procedure 1-52.1 State law
North Dakota 6 years 28-01-16 State law
Ohio 6 years Courts – Common Pleas, Ch. 2305.07 State law
Oklahoma 5 years 12-95A(1) State law
Go to Title 12 and click on the link. Open the file and go to Section 12-95.
Oregon 6 years Oregon Revised Statutes, Civil Procedure Ch. 12.080 State law
Pennsylvania 4 years Judicial Procedure 42 Pa. C.S. 5525(a) State law
Rhode Island 10 years 9-1-13 State law
South Carolina 3 years Code of Laws Title 15 Ch. 3 Sec.530 State law 8
South Dakota 6 years 15-2-13 State law
Tennessee 6 years Title 28 3-109 State law 9
Texas 4 years Civil Practice and Remedies Code, S.16.004 State law
Utah 6 years 78B-2-30910 State law
Vermont 6 years 9A-3-118 State law
Virginia 3 years 8.01-246 State law. See note.13
Washington 6 years Revised Code of Washington 4.16.040 State law
West Virginia 10 years 55-2-6 State law
Wisconsin 6 years 893.43 State law 11
Wyoming 8 years 1-3-105 State law

Would you like to know how the certified credit repair professionals get the debt removed from credit reports? If so, then you’ll want to order a copy of Repair Your Credit Like the Pros here.

3 Credit Tips for a Higher Credit Score

~ Carolyn Warren ~ Leave a comment

Last month, I was recorded for an episode of “On Everyone’s Lips.” Today, I am sharing three of those credit tips with you.

O.E.L.’s goal is to teach techniques and strategies.

O.E.L.’s mission is to inspire listeners.

Here are 3 Tips from the show:

  1. What debts should be tackled first?

It’s best to pay down any and all revolving debts first. Credit cards have a higher negative impact on your credit because they continue to affect you for longer, as opposed to installment loans like student loans and auto loans that have an end date.

Pay down your credit card debt first. Generally, it’s best to start with the card that has the highest APR/interest rate. The more you pay on interest, the more money you wind up paying in the long run.

2. What are some ways to maintain good credit?

Never shut down all of your cards. Closing your credit card accounts means that nothing is actively reporting to the credit bureaus. Eventually, that closed account stops helping your score. When there is no score to report and you have no credit history, then you will pay more for a home loan and other financing.

If you use a credit card once or twice a year, then the creditor won’t shut down your card.

3. What is the best way to obtain your credit report?

The best way is to write a letter to the address below and request a copy of your free annual report. Avoid using the online credit report request, because in so-doing you agree to waive several of your rights when you check the box agreeing to the terms and conditions. It’s always best to put everything in writing. Use the good, old fashioned USPS mail, even though it takes longer than the online system.

Annual Credit Report Request Service
PO Box 105281
Atlanta, GA 30348-5281

For the complete podcast, see here.

Thank you, Mr. Khari Harrigan, podcast producer and manager, for inviting me on your show.

Thank you, O.E.L. team Lindsey J, Chelsea Jade, and Monique Knows aka Mo for the interview.

 

Announcement: I’m Giving Away All My Book Royalties

~ Carolyn Warren ~ 1 Comment

Very near the equator where the sun rises at 6 a.m. and sets at 6 p.m. 356 days a year, there are villages where people live in thatch and mud homes barely large enough to shelter a sleeping family. They cook by fire and farm by oxen. They gather sticks and carry 50-lb stacks on their backs to sell at market in order to survive. In this place, something wonderful has happened.

Ethiopians are telling other Ethiopians about a newfound joy, the joy of knowing Jesus in a personal way. Their lives are being changed from male-domineering-sometimes-abusive into compassion. One of these villages has been praying for a neighboring village for 10 years, and now those same villagers are finding faith in Christ.

In one village there are now 88 Believers who gather to worship. They sit on plastic jugs or on the ground under a tree. They have no protection from scorching heat or rain. They need a church. Moreover, in their culture, what makes a religion valid is a church. They are accustomed to prayers in a mosque. Socially, without a church, you are nobody. Friends have told them, “If you get a church, that is when I will come and pray with you and join your faith.”

To build a church, they need land. A prominent Ethiopian, an Influencer, has come to salvation—and he brought his family of 24 into the faith with him. This man has donated land for the purpose of a church. The problem is, there are no funds to build a church nor means to earn funds. How much does a church cost?

$7,000! That’s right, only $7K will build a church that will change the course of a village. Less than what most of us pay for our cars.

I am donating 100% of my royalty income for November and December from my two bestselling books to fund a church for these dear people. However, my current monthly is not enough. And this is where I need your help. I am asking you to hit Share on Facebook to pass on this information so that people who need the information will order a book.

Repair Your Credit Like the Pros has 412 reviews with an average of 5 stars. Everyone who needs to fix their credit can benefit. (See Amazon)

Build and Project Your Credit Like the Pros is for young people starting out, immigrants, and anyone else who wants to go from basic-to-expert and a 800+ credit score in record time.

All November and December profits brought in by these books will go to build a church in Ethiopia. It is high time that prayers sent to heaven for 10 long years get answered!

If you know someone who could use it, why not purchase a book as a gift for them, knowing you will be helping families living far, far below the poverty line?

Thank you for considering being a co-partner with me in this worthy endeavor.

Thank You, Veterans, For Your Service

~ Carolyn Warren ~ Leave a comment

For our U.S. Veterans, we give you our respect and honor.

I would like to dedicate this verse to the men and women of the United States Military, both past and presently serving:

Be strong and courageous.

Do not be afraid;

Do not be discouraged,

For the Lord your God will be with you wherever you go.

~ Joshua 1:9

* * * *

Tomorrow, I will make a major announcement. Please come back or subscribe, because it is both important and interesting.
Thank you, Carolyn Warren

When Signing a Mortgage is Final

~ Carolyn Warren ~ 2 Comments

“After we signed escrow documents, we noticed that the fee was more than we were told. Can we rescind? Can we ask the lender to delete the fee? Can we choose a different lender?”

If your loan is a refinance, you have three days after signing to rescind or cancel. One of the documents you sign in a refinance explains this and even includes the date by which you have until midnight to cancel. Simply sign that rescission notice and scan/email/fax it to your lender. This cancels your loan completely and enables you to renegotiate or even go to a different lender.

If your loan is a purchase of real estate, then no, you cannot cancel after signing final loan documents. Nor do you have the legal right to ask for any changes in financing. Why?

Because you received the Closing Disclosure three days before signing. The law gives you that time ahead of signing to ask questions and request any needed changes.

This is a good lending law, because it gives time for corrections and still close on time, according to your Purchase Contract, and without negatively impacting the seller.

Additionally, when you are at the signing table, you can stop, pick up the phone and call your loan officer. If there are errors, the loan officer can get those pages corrected, often while you wait; or worse case, by the next day.

You can stop signing, stand up, and walk out. Don’t sign contractual documents with the wrong interest rate or incorrect fees.

Don’t sign without looking at what you are signing!

If you don’t understand something, call your loan officer and ask before placing your signature on the line. One of the pages you sign says you have read everything, agree to it all, and understand what you’re signing. So you cannot later claim you didn’t understand.

There is plenty of opportunity to read the documents and ask questions, and it is your right and responsibility to do so. Never let anyone bully you into signing something you don’t like or understand.

If you have any questions about this, please reply in comments. As always, thank you for reading.

 

Saved From Making a $115,720 Mistake!

~ Carolyn Warren ~ 2 Comments

This week, I saved some homeowners, a lovely couple in California, from making a financial mistake that would have cost them $115,720. Could you be making a similar mistake?

The wife asked my opinion on the Loan Estimate they received from a big national bank you would all recognize. It was a refinance to lower their interest rate and payment.

Her gut instinct said something was off; although, she wasn’t sure what. That’s when she reached out to me.

A close look revealed that the refinance was going to save them $47 per month. That adds up to $564 per year, and $16,920 over the life of the loan, 30 years. But wait!

They were already seven years into their loan. And most of the interest is paid in the first five years.

By going backward seven years, this “lower payment” was going to cost them $115,720 more!!!

And for what–to save a paltry $47 per month?

Mrs. Homeowner responded, “How can they do that to people?”

Good question. Her husband was a disabled U.S. Veteran, injured serving our country. How could they, indeed!

Before you jump into a refinance to lower your monthly payment, stop and consider what it will cost you to go backwards to the beginning of a 30-year term.

If you choose to go to a mortgage broker (rather than a bank or direct lender), you could get a customized loan term that won’t require you to go backward at all. That’s right! A mortgage broker can write a loan for 28 years, 27 years, 19 years, any term that makes the best financial sense for you.

If you are in CA or WA, I am licensed in those two states. If you are in AZ or OR, I have a colleague who is licensed there. Thank you.