Discover the Value
Appraisals have been nothing short of a joke this year. Legislation kicked in on May 1st that doesn’t allow mortgage brokers to have any contact with appraisers. Even if I see one at a bus stop, I’m supposed to put my head down and walk away. This was put into place to help curb any fraudulent values. What has it done? It’s made a mockery out of the whole appraisal system. For the last 12 years I have used the same appraiser who knows the city of Chicago better than anyone on this planet. Now we are forced to use appraisers who may reside in a suburb 50 miles from the city. This isn’t just Perl Mortgage – every single bank/broker has to abide by the new rule. If you haven’t already done so, I encourage you to write your legislator and complain about it. The rule had a good intent, but has only hurt the borrowers it was designed to help.
After being as low as 4.625% and as high as 5.875% in the past 40 days, rates have settled back in the low 5s. Today a 30yr fixed is at 5.25% – but keep in mind that can fluctuate based on equity in the home, credit score, and full moons.
In peace, Farrah…
Bi-monthly payments can cut a 30 year mortgage down to 23 years. When you set up b-monthly payments with the bank – by the end of the year if you add it up – you’ve made 13 payments instead of 12. That extra payment cuts out a ton of interest. I advise doing this if you are going to keep your place more than 5 years. Less than 5 years? I advise you to take that extra money and blow it on a bender to Vegas.
Congratulations to all who guessed last week’s answer: George Michael. Want to win a $5.00 Starbucks gift card? Be one of the first ten to guess the ‘Who am I?’ question: I turn 42 today. Born in British Columbia , I was discovered at a Canadian Football League game when I was shown on the jumbotron and given a modeling contract on the spot; but I’m not just another pretty face – I’ve written books, starred in TV sitcoms and movies. I’m an active member of PETA although they are probably not happy with the fact I opened a strip-club steakhouse in New York a couple months ago. One thing I haven’t been successful with is my love life. I’ve been married three times (two divorces and one annulment), dated rock stars, models, surfers, gamblers, Scott Baio, and have secretly had a crush on Barry Schwartz for years! That’s quite a motley crue, huh?