Ruth's Blog: Ruth Vogt (LMB#100023827) WR Starkey Mortgage

Oh, my! I really over did it yesterday! 8 hours of Raincamp and I'm still exhausted today! Not because of pushing that darn walker around all day, but because my head is still swimming with all the stuff we learned!

Where to start? Just one thing at a time. But for reference, here are my notes that I took:

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Twitter: #raincamp

Use Klout.com to see how much impact you have on twitter.  (5 today. boo-hoo)

Photosynth.com helps you find related photos from all sites. Stitches photos together for tour??

Wiggio.com allows you work in groups

IGetSales.net

GoProSystems.com

Xobni.com check email addresses to pull profile of leads (68% increase if you send a facebook, twitter, or linkedin message vs email)

Tr.im and tinyurl.com do the same except that tr.im gives results of how many clicks and from what  source.

Mailchimp.com does the same for emails.

Goldmail.com allows video emails inside of regular emails.

Awayfind.com is like an auto responder??

99designs.com  competing for design work

Google.com/voice ???

Slydial.com enter in their number, your number, by passes live ring and goes direct to voice mail as a missed call.

74% people online; 16 TV vs 32 on computer. 32% of time online on social platform. 1% of time people on websites.

Help local businesses identify target marketing!

93% of consumers online use search engines. 85% of traffic comes from search engines. 825 of searches come from yahoo, google, msn and 67% from google.

75% won't  go past the first page. You want to get in top 5%.

87% of homebuyers, 94% of 23-44 yrs use internet.

32% found the actual they purchased online. (based on photos: quality and quantity_

90% of sellers have their property marketed on line. (All online marketing is not equal)

Google search sponsored ads, cost to click. 61% users think organic is more relevant.

SEO: Search Engine Optimizer.  Four key areas:

The Long Tail Truth : 20/80 20% Denver Real Estate vs 20% Homes for sale in Cherry Creek.

Hittail.com tracks hits based on keyword searches

Homes in lone tree, parker homes for sale, qualifying for a mortgage,  todays interest rates, when to lock a loan.

Content /keywords: geographically specific (not name) with keyword density.  Pick one page for all most common keywords. (Denver real estate, all Denver, not Denver and Aurora)

Limit the size of page or blog (500 words)

The older the domain name, the easier to rank. MOST domain names doesn't win except for marketing. On the other hand, most pages does win!

????  Size of website: google site:www.domainname.com

Page titles should match the keyword search as well as the density of the page.

Page descriptions should include the page titles.

Links: pay attention to link text.  Click here vs click here to view ABC homes for sale

Limit your size; focus on density; older domain better; more pages better; page title and descriptions match; link (one way NOT two way)

Google analytics tracks traffic. Use on all sites/pages

Google expert: Matt Cutts (you tube) for google tips

Projection: mixed media and multi media (video!) will most likely be impacting. Networking or social graphing will start applying.

5 reasons to have a blog:

•1.       Write articles that people find via internet

•2.       Missed it

•3.       Missed this one too

•4.       Doggone it, this one tooo!

•5.       Blog for referrals

Don't use filler words (and, the) to determine content

Brad Andersohn

Screentoaster.com and screener.com

Slideshare.com/bandersohn

Picnik.com online photo editing

Openoffice.org  free Microsoft programs

Gimp.org adobe photoshop jr. free (mix photos and videos!)

Xtranormal.com text to movie

Clipnabber.com save video to hard drive for offline presentations

Bannerfans.com graphic designs online

Feedmingle.com rss multiple feed widget stored in one place

Steprep.com monitor what people are saying about you

Issuu.com publication library

Box.net online file storage and sharing

Transferbigfiles.com to send larger files!! (up to 1 gig)

Freeconferencecall.com

Text widget (realestatetechnologyonline.com/widget)

Widget.collecta.com works with twitter to sort info or send info based on specific words/ zip, etc

Waslkscore.com get walking distance within a neighborhoods

Thetwittertools.com 900 pieces to assist you with twitter

Conduit.com creating your own toolbar (Active Rain)

Wix.com free flash websites / useful for listing addresses

Feedblitz.com email subscription and newsletter tool

Wisestamp.com create custom social networking signatures on email (including social media)

Tokbox.com free video email

Retaggr.com email signature and profile of all social media and website

Avg.com free anti-virus and anti-spyware

Mozy.com $4.95 online back up!

Socialthebook.com!!!

Ambient Awareness, best way to describe twitter. Lots of little pieces to complete a picture.

Worlde.com check to see what words are most commonly used on sites.

Logotournament.com $250 for designers to compete to get your brand created.

Namechk.com to see if your user name, personal name, are available on other sites.

Facebook.com/username

Geochirp like google alert only local??

Tweetbeep track tweets about you

Facebook Fan Page

•1.       Geographic area (fans post page)

•2.       Ask questions (what's the best... pizza, dry cleaner)

•3.       Then add a FBML (listing service)

•4.       Restaurant Reviews

•5.       REO business

•6.       Office or team page

Join Saveaworm page! (I did!)

Script: Interview one of my competitors before you hire me and I'll take $500 off my competition. Because I want you to know with 100% confidence that no one is going to do more than me to get your home sell.

TWITTER

140 characters is all peple can remember

Demandspot.com predetermined phrases that suggest buyer or seller opportunities; then search!

Geochirp words to follow

Prospecting Facebook searh for words: house, realtor

Get your sphere in gear. 

•1.       Scan through notifications - new job, baby to be lead generation opportunities

•2.       Identify reason to call

•3.       Make contact and use the sphere script

•4.       Set up lists to update to list

•5.       1 email a week: Keep it short, give Item of value

AND DON"T FORGET TO Ask for referrals!

How to rank your business:

Google Maps in business page  in Google/Local

Click on the local business results

Add my business

10 days of pain - work out a 10 day action plan to apply to every internet lead opportunity.

Average client averages 10 days on the internet doing research before they make decisions, so shouldn't we do the same?

www.hitwise.com/us/datacenter/main/dashboard-10133.html (rankings of searches)

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These notes may not make sense to anyone else, especially if you didn't attend. If anyone that did attend, picked up anything else that I missed, please add to my list!

Wish me luck! If I check off 2 a day, I MIGHT be ready for Raincamp next year!!!

Mortgage Rate Indicators for Denver.

The next 60 days are going to be interesting to see what rates do. Without getting too technical with the effect of supply and demand on interest rates, let it just suffice to say we are embarking on a time frame where government funding which has been supplementing the mortgage backed securities activity is potentially coming to an end. Times are going to be volitile so be sure to stay in close communication with your lender and discuss the current mortgage rate indicators!

Market Comment - Week of March 8th, 2010 Mortgage bond prices continued to rebound higher last week, which pushed mortgage interest rates lower. Stock gains kept mortgage bonds relatively in check but many of the data releases were very bond friendly. The core PCE inflation reading was unchanged compared to the slight increase expected by analysts. Q4 revised productivity rose 6.9%, much better than expected. Higher productivity means a company can produce more with less input helping to keep prices and thus inflation in check. Rates fell about 1/8 of a discount point for the week. Expect stocks to factor into trading the early portion of the week with very little data on tap. The Treasury auctions will be the focus throughout the middle portion of the week. Strong foreign demand would likely help mortgage bonds also. The jobless figures and retail sales data will be the focus for the end of the week. Economic Factors Economic Indicator Release Date Time Consensus Estimate Analysis 3-year Treasury Note Auction Tuesday, March 9, 2010 None Important. $40 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates. 10-year Treasury Note Auction Wednesday, March 10, 2010 None Important. $21 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates. Weekly Jobless Claims Thursday, March 11, 2010 450k Moderately important. An indication of the employment situation. A large increase may bring lower rates. Trade Data Thursday, March 11, 2010 $40.3 billion deficit Important. Affects the value of the dollar. A falling deficit may strengthen the dollar and lead to lower rates. 30-year Treasury Bond Auction Thursday, March 11, 2010 None Important. $13 billion of bonds will be auctioned. Strong demand may lead to lower mortgage rates. Retail Sales Friday, March, 12, 2010 Up 0.1% Important. A measure of consumer demand. Weakness may lead to lower mortgage rates. U of Michigan Consumer Sentiment Friday, March, 12, 2010 73.6 Important. An indication of consumers' willingness to spend. Weakness may lead to lower mortgage rates. Auctions US Treasury bonds do not directly dictate fixed mortgage interest rate pricing however they do have an indirect impact. Both Treasuries and mortgage bonds often track in the same direction but this is not always the case. There are many times that Treasuries and mortgage bonds move inversely. Despite the overwhelming size of the US economy, foreign investors can still have an effect on moving the financial markets. When foreign economies struggle foreign investors often purchase US based investments including mortgage bonds. This demand usually causes mortgage bond prices to rise and interest rates to fall. This flight to quality buying was one of the factors that helped mortgage interest rates to remain historically low in years past. There is a real threat that continued global economic turmoil might keep foreign investors from purchasing mortgage bonds in the future. The Treasury auctions this week will be important in determining the current appetite of foreign investors for dollar denominated securities. If this week's auctions are poorly bid mortgage bond prices could fall pressuring mortgage interest rates higher.

WR Starkey Mortgage - A different kind of company...where people come first!

6025 South Quebec, Suite 110 Englewood, CO 80111      rvogt@wrstarkey.com www.MyLenderOfChoice.com    Ruth Vogt Business Development Manager (LMB100023827) Work: 720-489-0712 Fax: 720-489-0273 Other: http://www.dora.state.co.us/real-estate/index.htm

Well, it has been FOREVER (over a month!) since I posted. So in the spirit of the meaning of "blog" (web log) I need to catch up before moving forward.

For better or for worse is the name of this post, as the month of February (the one month of the year that represents LOVE) gave our marriage of over 28 years an opportunity to test both.

For Better: We had an incredible twelve days to sit in the sun with friends and family in Cabo.

We woke each morning to an incredible sunrise, somehow always different from the day before.

The first 5 days we spent with friends of 25 years, just the four of us. Our children and grandchildren joined us for the last seven days bringing our total to fourteen.

Pool, beach, beer, snorkeling, sand castles... you get the idea: 14 days of fun in the sun! Even the twins who are three and half didn't have time to snivel about a thing!

At the end of the trip, we surveyed "Who wants to come back next year?"

The answer was unaminous!

We got back just in time for me to repack and head to New Orleans for a real estate convention called the Keller Williams Family Reuinion. Even though I was tired from such a great vacation, I was really looking forward to the convention as it's such a wealth of training and networking opportunities that I was excited about going (even though we left for the airport at 3:45 am!) We finally got to New Orleans on Saturday (there were 7 of us in our group) in time to get settled in the hotel and head out for dinner. (Still wondering what the difference is between creol and cajon spices??) Sunday morning we headed for the New Orleans Convention Center just a few blocks (LONG blocks) down the way. First day of classes left me pumped for what the next 3 days would add!

Heading back to the convention center it started to drizzle just enough to wet the streets and sidewalks. And if you've been in New Orleans, you know their sidewalks leave a lot to be desired. Loose cobblestones, gravel, decayed asphalt... that's my story and I'm sticking to it! I slipped coming off the curb, bounced twice before telling the others not to move me, I was in too much pain.

I went to the scariest emergency room in the country (but then I don't have a lot of experiences to draw from to be honest). Hours and xrays later it was determined I had broken my hip. and would have to have hip surgery.

Here's where the second part of my post comes in.

Or for worse:

My husband (sitting in front of the TV in Colorado) got the call about 10:00 Sunday night. By the time I was going into surgery the next morning, he was on a plane heading to New Orleans.

What is amazing is how quickly a very independent, self sufficient individual can change to total dependency needs overnight! I don't know how my husband tolerated me over the next few weeks??? Surgery happened on Monday and I was released on Friday. In the meantime, I learned how to use a walker, why handicap bathrooms are so important, and how to shower when you can't stand up!

On Saturday we were booked on a flight back to Denver. I had plenty of time to worry about people bumping into me, how to get into my seat (even though it was a bulk head, I was a handicap IN PAIN and had no experience in navigating these types of things!) How to get from a walker into a wheel chair and then HOW TO TRUST PEOPLE to PUSH me! During the 3 hour non stop flight home, my oldest daughter and her husband got a handicap toilet for me, converted my regular shower to a hand held, and made arrangement to get a temporary ramp over the steps so I could get into my house when I got home.

My husband spent the next three days at home with me, continuing to help me with every imaginable detail of my daily survival activities. Something he has never had to do before, and something I have never had to rely on him to do.

My sister flew in to release him of duty on Thursday of last week. And every day gets A LOT BETTER!

But through all of this, even though I'd prefer NOT to have had this experience, it is reassuring to know that when Jim and I took the vows promising "for better or for worse" 28 years ago... he meant it!

February, 2010 wias a GREAT month for me!

Mortage Rate Indicators for Denver

Week of February 1, 2010

Market Comment - Week of February 1st, 2010 Mortgage bond prices fell last week pushing mortgage interest rates slightly higher. Most of the data early in the week was bond-friendly. Unfortunately the Fed's reminder that their purchases of mortgage bonds would cease after the first quarter sent bond prices tumbling Wednesday afternoon. This was followed by stronger than expected gross domestic product, employment cost index, and PCE price data Friday morning. Bonds were helped Friday afternoon as stocks remained jittery. Interest rates rose by about 1/8 of a discount point for the week. The employment report Friday will be the most important event this week. Income, outlays, ISM Index, productivity, and factory orders data may also move the market. The ADP payrolls data will be carefully watched even though the release does not always reflect the results of the employment report. It still provides another view of the employment situation. Economic Factors Economic Indicator Release Date Time Consensus Estimate Analysis Personal Income and Outlays Monday, Feb. 1, 2010 Income up 0.3%, Outlays up 0.2% Important. A measure of consumers' ability to spend. Weakness may lead to lower mortgage rates. Construction Spending Monday, Feb. 1, 2010 Down 0.3% Low importance. An indication of economic strength. A significant decrease may lead to lower rates. ISM Index Monday, Feb. 1, 2010 56.7 Important. A measure of manufacturer sentiment. A larger decline may lead to lower mortgage rates. ADP Employment Wednesday, Feb. 3, 2010 -90k Important. A measure of employment. A large decrease in payrolls may bring lower rates. Preliminary Q4 Productivity Thursday, Feb. 4, 2010 Up 5.9% Important. A measure of output per hour. Improvement may lead to lower mortgage rates. Factory Orders Thursday, Feb. 4, 2010 Up 1.5% Important. A measure of manufacturing sector strength. A larger decrease may lead to lower rates. Employment Friday, Feb. 5, 2010 Unemp. @ 10%, Payrolls +20k Very important. An increase in unemployment or a large decrease in payrolls may bring lower rates. Consumer Credit Friday, Feb. 5, 2010 Down $9.2 billion Low importance. A significantly large increase may lead to lower mortgage interest rates. ISM The Institute for Supply Management (ISM), formerly the National Association of Purchasing Management (NAPM), releases the "Report on Business" on the first working day of each month. Part of this report is the "diffusion index," which tracks the economy's ups and downs fairly well. In conducting this survey, the ISM questions purchasing executives from over 250 industrial companies compiling data on production, orders, commodity prices, inventories, vendor performance, and employment. Each of the respondents is asked to rank the categories as "up" or "down." Various weights are applied to the individual components to form the composite index. A composite index reading of 50 can be thought of as a "swing point." A reading above 50 implies an increase in economic activity, while a reading below 50 indicates a decline. As a general rule of thumb, when the index approaches 60, investors begin to worry about an overheated economy. A slide below 40 suggests that recession is at hand. The ISM report is difficult for economists to forecast because there is little data upon which to base an educated guess. The report has a large "surprise factor" and can often prompt a significant market reaction. Be cautious going into the data.

WR Starkey Mortgage - A different kind of company...where people come first!

Ruth Vogt Business Development Manager (LMB100023827) 6025 South Quebec, Suite 110 Englewood, CO 80111  Work: 720-489-0712 Fax: 720-489-0273 Other: http://www.dora.state.co.us/real-estate/index.htm  rvogt@wrstarkey.com  www.MyLenderOfChoice.com

What's best? Discount pricing, Premium Pricing, or Par pricing?

Sounds boring already, doesn't it?

But I'm going to KISS (keep it simple silly) and then I'll TELL you why at the end.

First, you need to understand there are 3 basic interest rate pricing structures:

Discount Pricing, where you prepay the interest of a loan upfront at closing (discount points). You have thus lowered your interest rate for the life of the loan.

Premium Pricing would be a rate higher than the market requires, allowing the estimated additional monthly interest to be a credit to the borrower at closing. Typically applied to offset mortgage closing costs.

Par Pricing is the exact interest rate set by the market - no discount paid, no premium credited back.

Summary: If you want to lower your closing costs, you can choose a higher interest rate.

If you want to lower your monthly payment, you can pay higher settlement charges.

You want KISS? Skip to the end! If you can handle more, look at this example:

The first option shown is the "par" rate. Take a look at the monthly payment, and the estimated settlement charges.

The middle example is a good option for the borrower who wants lower settlement charges, which is accomplished by increasing the interest rate, and therefore the monthly payment.

And the third example is a good option for the borrower who wants a lower monthly payment. This is accomplished by prepaying interest, called discounting the rate, resulting in paying discount points.

Notice the chart makes it easier for the buyer to identify which option is more appealing to them.

BUT here's where we can crunch it down to determine if the option is BEST for them:

The first option has the borrower bringing almost $2,000 more money to the closing table, to save $76.71 per month. So if you take the extra cost ($2000) and divide it by the savings ($76.71), you get the breakeven or approximately 26 months. That means, if the borrower is going to live in the house more than 26 months, it would be worth the extra $2,000 at closing to get the monthly savings by paying for the lower interest rate.

This should help take the smoke and mirrors out of picking what rate is right for you.

NOW I'm ready to TELL you why I'm sharing this with you...

This chart is on the third page of the new Good Faith Estimate of Closing Costs!

It's not REQUIRED to be filled out, but if you want to best explore your options ask your lender to do so.

Mortgage Rate Indicators for Denver

Interest rates can be extremely volatile based on the news from various sectors of the economy, such as unemployment, inflation, etc. So, when trying to decide whether or not to lock a loan, it's important to watch mortgage rate indicators which MIGHT give some direction. Notice I said "direction" not "guarantee", because there really is no one that knows for sure what the interest rates are going to do. If they did, they would own islands somewhere warm and be retired!

If you are interested in applying on line for a loan, go to www.MyLenderOfChoice.com.

Or call me at 720-489-0712.

Market Comment - Week of January 25th, 2010 Mortgage bond prices rose last week pushing mortgage interest rates lower. The bond market rallied following crumbling stocks as the DOW fell 213 points Thursday. Weekly jobless claims came in higher than expected causing unemployment fears to cast a shadow over the state of the economy. In a consumer based economy it is difficult for people to spend money without a job. The producer price index was mixed as the headline figure was higher than expected but the core was lower than expected. For the week interest rates fell by about 1/4 of a discount point. The Fed meeting Wednesday will be the most important event this week. The Treasury will continue the record auctions with 2-year notes on Tuesday, 5-year notes on Wednesday, and 7-year notes on Thursday. If foreign demand remains decent rates should hold near current levels. However, a drop in foreign demand will likely cause rates to head higher. Economic Factors Economic Indicator Release Date Time Consensus Estimate Analysis Existing Home Sales Monday, Jan. 25, 2010 Down 8.3% Low importance. An indication of mortgage credit demand. A significant decrease may lead to lower rates. Consumer Confidence Tuesday, Jan. 26, 2010 52.9 Important. An indication of consumers' willingness to spend. Weakness may lead to lower mortgage rates. New Home Sales Wednesday, Jan. 27, 2010 Up 1.9% Important. An indication of economic strength and credit demand. A decrease may lead to lower rates. Fed Meeting Adjourns Wednesday, Jan. 27, 2010 No rate adjustment Important. Few expect the Fed to change rates, but some volatility may surround the adjournment of this meeting. Durable Goods Orders Thursday, Jan. 28, 2010 Up 2.0% Important. An indication of the demand for "big ticket" items. Weakness may lead to lower rates. Q4 Advance GDP Friday, Jan. 29, 2010 Up 4.5% Very important. The aggregate measure of US economic production. Weakness may lead to lower rates. Q4 Employment Cost Index Friday, Jan. 29, 2010 Up 0.4% Very important. A measure of wage inflation. Weakness may lead to lower rates. U of Michigan Consumer Sentiment Friday, Jan. 29, 2010 73.0 Important. An indication of consumers' willingness to spend. Weakness may lead to lower mortgage rates. Fed Focus The United States central bank, the Federal Reserve, coordinates the borrowing and lending activities of federally chartered banks. The principal reason the Federal Reserve was created was to reduce severe financial crises. One way of accomplishing this goal is to control the amount of money that flows through the economy. By manipulating the US money supply, the Fed influences inflation, unemployment, and the level of US economic activity. The Fed has a variety of tools that it uses to control the money supply, but its chief policy tool is the manipulation of short-term interest rates. All eyes will be focused on the Federal Open Market Committee meeting Wednesday. No rate changes are expected. However, many analysts and traders believe rate hikes are on the horizon. Futures contracts show traders are pricing in a 77% chance the Fed will raise rates by November. Others argue those positions will be wrong because the economy isn't strong enough for the Fed to change rates. A cautious approach to float/lock decisions is prudent heading into the Fed meeting this week. Be prepared for potential market volatility.

WR Starkey Mortgage - A different kind of company...where people come first!

Ruth Vogt Business Development Manager (LMB100023827) 6025 South Quebec, Suite 110 Englewood, CO 80111  Work: 720-489-0712 Fax: 720-489-0273 Other: http://www.dora.state.co.us/real-estate/index.htm  rvogt@wrstarkey.com  www.MyLenderOfChoice.com

Before I explain that question, let me ask you this one: "How long have you been in the business?" Ever have someone ask you that? Here's my answer, and it will really make you think!

I was in the business before we had the Equal Credit Opportunity Act (ECOA). ECOA went into law in 1976, and protects against discrimination based on race, color, religion, national origin, sex or marital status, or age.

So, you ask???

Well, when I was first in this business, if I were taking a loan application from a married couple that were of child bearing age and they wanted her income to be taken into consideration, I would have to document their birth control procedures!!

Yep! That's right! A letter signed by the two of them certifying they did not intend to have children, why, and then explaining their form of birth control would sometimes suffice, but not always! Imagine having to ask THAT question at the face to face loan application (which a face to face was the only kind of loan application we could accept)! Remember, back then maternity leave was not protected by law. Thus, if the wife were to get pregnant, there would be no guarantee that she would get her job back. So job stability could not be established, disallowing the income from being taken into consideration.

And to think today we're all uptight about a new Good Faith Estimate and HUD!

"We've come a long way, baby!" (Do you know what advertisement that line was used in?)

This post is included in the brand new "Financing Friday" group, which we invite you to join.

Mortgage Rate Indicators for Denver

Wondering what interest rates for home purchases will be this week? No way to be certain, but watching the mortgage rate indicators is one way to get some idea of what to expect.

If you would like to be prequalified, you can fill out a secure online application at www.MyLenderOfChoice.com. Or call my office at 720-489-0712.

Market Comment - Week of January 18th, 2010 Mortgage bond prices rose last week pushing mortgage interest rates lower. The bond market rallied nicely Tuesday following moves by China to curb growth. Oil prices fell almost immediately providing a much-needed reprieve following the recent run up in prices tied to severe cold weather across the US. The consumer price index data showed tame inflation, which also helped rates improve. For the week interest rates fell by about 1/2 of a discount point. The inflation data Wednesday will be the most important economic release this week. Signs of stronger than expected inflation would not be good for mortgage interest rates. The bond market is closed Monday in honor of the Martin Luther King holiday. Interest rates may be volatile Tuesday as trading resumes following the extended holiday weekend. Economic Factors Economic Indicator Release Date Time Consensus Estimate Analysis Martin Luther King Day Monday, Jan. 18, 2010   Important. Shortened trading week may result in volatility when trading resumes Tuesday. Producer Price Index Wednesday, Jan. 20, 2010 Unchanged, Core up 0.2% Important. An indication of inflationary pressures at the producer level. Weaker figures may lead to lower rates. Housing Starts Wednesday, Jan. 20, 2010 Up 1.0% Important. A measure of housing sector strength. Weakness may lead to lower rates. Weekly Jobless Claims Thursday, Jan. 21, 2010 445k Moderately Important. An indication of employment. Higher figures may result in lower rates. Leading Economic Indicators Thursday, Jan. 21, 2010 Up 0.5% Important. An indication of future economic activity. Weakness may lead to lower rates. Philadelphia Fed Survey Thursday, Jan. 21, 2010 18.2 Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates. LEI The index of leading economic indicators (LEI) is a weighted average of eleven economic variables that "lead" the business cycle. It is constructed for forecasting future aggregate economic activity. The eleven variables that make up the LEI measure workers' hours, initial unemployment claims, new factory orders, vendor performance, contracts and orders for plant and equipment, new housing permits, changes in unfilled orders, prices of raw materials, stock prices, money supply and consumer expectations. Each of the variables that comprise the index has a tendency to predict (or lead) economic activity. For example, new orders for manufactured goods, new orders for plant and equipment, and new building permits are all direct measures of the amount of future production being planned for the economy. Analysts monitor the LEI in an effort to predict future economic growth. When the LEI report is up, mortgage market participants expect credit demand to increase and inflationary pressures to build. Thus, when the LEI report is rising, interest rates tend to rise as well. The LEI report is a valuable forecasting device that correctly predicts most economic turning points. The percentage change in the LEI is reported monthly and is an indication of the activity that will occur within the next three to six months. The LEI tends to turn down before peaks in the business cycle. Continuous declines are generally accepted as evidence that a recession continues. Nine of the eleven components that make up this index are known before the release of the report, so the index is easy for economists to predict. Thus, although this is important predictive data for market participants, surprises are not common with the release of this data.

WR Starkey Mortgage - A different kind of company...where people come first!

Ruth Vogt Business Development Manager (LMB100023827) 6025 South Quebec, Suite 110 Englewood, CO 80111  Work: 720-489-0712 Fax: 720-489-0273 Other: http://www.dora.state.co.us/real-estate/index.htm  rvogt@wrstarkey.com  www.MyLenderOfChoice.com

New Good Faith Estimate of Closing Costs

Sometimes the hardest part about having new forms is that, well, it's NEW! It's DIFFERENT! We have to create new scripts to EXPLAIN it so that our clients can UNDERSTAND it. But first... WE have to understand it.

So here are just a few points regarding the new Good Faith Estimate that I hope will help with that.

First, we have to recognize the old Good Faith Estimate was really an estimate focused on how much the BUYER needed to bring to closing and how much they would have to pay monthly.

Now, we have an estimate of closing costs related to the mortgage REGARDLESS of who pays! No credits offsetting, just a disclosure of the expenses. Let's do a simple down and dirty comparison of then vs now to help get my point across.

For the purpose of ease, we'll pretend we have an FHA loan with a sales price of $100,000.00. Here are the other details for my example:

1. The buyer is putting minimum down of 3.5%, or $3,500.
2. Buyer has put $1,000 earnest money down.
3. We'll pretend the total closing costs and prepaids are about $4,000 and the seller is going to pay them.
4. And of course, on an FHA loan we have upfront mortgage insurance of 1.75% off the base loan amount, or about $1,700, which is rolled into the loan.

The old Good Faith Estimate, which was created just for the buyer's information, the amount required for closing would show:

1. Closing costs and prepaids being paid by seller, which would show the credit for the buyer.
2. Mortgage insurance of $1,700 would be added to the mortgage, which would also be credited.
3. Leaving basically the down payment of $3,500, less the earnest money deposit, or $2,500.00

With the new Good Faith Estimate, there are no credits reflected. It is merely a reflection of ALL costs associated with the transaction regardless of who is paying them. Bottom line is going to look like this:

1. Closing costs of up to $4,000
2. Mortgage insurance of $1,700
3. Down payment of $3,500
4. NO CREDITS, so bottom line will be a total of the above, or $9,200.00.

The buyer isn't paying any more or any less. It's simply an explanation of all costs that need to be taken into consideration on that transaction.

Will this leave the buyer confused? Yes, UNLESS we redirect our attention to the residential loan application, known as the 1003! That form does, in fact, give a total monthly payment AND breaks down what amount the buyer will need for closing. Let me show you specifically where to look.

Page 4, Section VII:

Notice the credits given for seller paid fees

Earnest Money 

and MIP financed

Leaving what the Buyer needs for closing

And while we're looking at the 1003, we can also see the estimated TOTAL monthly payment on Page 2 of the application, Section V:

So, just change your scripts!

1. The GOOD FAITH ESTIMATE is a reflection of ALL costs regardless of who pays what.
2. For the total monthly payment and cash required at closing, look at the Residential Loan Application, referred to as the 1003, Sections V and VII.

Remember, your first time homebuyers have never seen the old GFE, so they don't know the difference. Don't dwell on the change, just focus on new scripts to help your buyer best process the information disclosed in the formats we are required by law to use.

Colorado Springs MLS

The real estate market is showing an improvement in Colorado Springs according to the MLS, or Multiple Listing Service. The MLS tracks the time a property is on the market before selling. The time on the market actually gives indication of whether we have a buyer's market or a seller's market. The article below gives current MLS statistics suggesting Colorado Springs properties are selling much faster than they were a year ago.

For additional information on the importance of working with someone that is qualified to accurately interpret MLS statistics, please click: MLS reports.