May 17, 2012
Written by Mary Ann Clark
Thursday, 16 February 2012 01:00
Last week five national banks allocated $35 billion to help people who are under water refinance their home mortgages. There are approximately 11 million or one out of five homeowners in this situation. The banks willingness to assist distressed homeowners is a start, but it is not a total solution given the scope of the problem.
Another requirement for refinancing is that the homeowner have at least 20 % equity in their home of the current appraised value.
It makes sense, for homeowners to subtract the total costs of refinancing from the projected savings of refinancing. It generally makes sense to consider refinancing if a homeowner is going to be in the home for a minimum of three years. Closing costs have increased approximately 9% year over year. In the New York area, closing costs are approximately $6,183 (source: Bankrate.com).
There is a fair amount of paperwork involved in refinancing (i.e. two years of tax returns, pay and asset statements) and it can take approximately 60 days to refinance.
What is an APR?
The Annual Percentage Rate (APR) factors in particular closing costs and fees associated with a mortgage loan; and spreads this amount over the life of the loan along with the note’s rate. Fees, typically, included in the APR are: pre-paid interest, origination fees or points, loan process/underwriting fees and private mortgage insurance. Fees, typically, excluded from APR calculation are: transfer taxes, title, escrow, attorney notary, document preparation, home inspection, recording, credit and appraisal fees.
It is important to compare bank APR’s, however, be aware that there calculation can differ.
Further, APR’s do not factor in pre-payments, moving or refinancing. APR’s based on an adjustable rate and balloon mortgages can be confusing and involve uncertainty as compared to those tied to a fixed interest rate. Why? There is uncertainty as to what rates of interest will be in the future with adjustable and balloon mortgages. So comparing APR’s are a start, but a professional mortgage broker should assist a buyer and homeowner in selecting which bank loan works for their needs.
Mary Ann Clark is a Realtor with Coldwell Banker located at 177 West Putnam Ave. Questions or comments can be emailed to This e-mail address is being protected from spambots. You need JavaScript enabled to view it or you can reach her directly at 203-249-2244.
I just noticed that the guys my daughters are dating — two of whom are about to become my sons-in-law if I can afford the weddings — have that gruff facial stubble you see in men’s magazines, where the fellows look like Navy SEALS on commando raids or linebackers for the New York Giants.
Don’t get me wrong. I’d join the Navy SEALS tomorrow if I didn’t have those weddings to pay for, and I even fancied myself a macho man years ago when I belonged to a gang that had the Shelton public library as its home turf. You’ve heard of the Hell’s Angels? We were the Book Worms.
I should be more observant about the fellows my daughters bring home, and I probably need more father-in-law/son-in-law bonding opportunities, so maybe we can go to the barbershop together.
In its 185th year, GA graduation has picked up many traditions through its history, creating a busy few days leading up to the big day. The last day of classes for seniors is today, a week before graduation. During the next week, while upperclassmen are studying hard for final exams, the seniors are treated to various programs set up by the administration. From lunch with alumni in the area to a self-defense class taught by a martial arts master, the week is filled with fun, and useful, activities to take our minds off the impending “Big Day.”
Sellers having properties in preferred neighborhoods, new, updated and/or well maintained and appropriately priced are receiving multiple offers. Some offers are close to ask, less than ask and others can be 25% or less of the list price (aka “low-ball” offers). Regardless where the multiple bidders fall on this spectrum, there have been a rise in complaints about the bidding processes.
Dear Larry,
I am a heavy user of Outlook but after years of use, my Inbox is out of control, and the program as a whole is getting very slow. Is there anything I can do to tame it? —F.O.
Dear F.O.,
In my last column, I discussed the use of Outlook folders to unburden the Inbox. This week, I’ll talk about using mail rules to redirect messages to folders.
Those of you who read my last column have by now created folders to bring some organization to your Outlook mess ... er, messages. You then dragged messages from your Outlook Inbox into the folders, thereby better organizing your messages as a whole.
"The task of a writer consists of being able to make something out of an idea"
said Thomas Mann. A book has to take up residence in the writer's mind before it can exist in the material world. Writers travel between the world of imagination and the world which we like to call the "real" one. Woven through the tapestry of their stories they transmit messages which we, as cynical readers, have long forgotten...
You think rush hour traffic is bad in Fairfield County on I-95 and the Merritt? Try driving on I-84 or I-91 into Hartford. That’s why the planned busway from New Britain to downtown Hartford makes such sense.
Yet, the project has been widely scorned and almost scuttled by rail advocates and lawmakers who would rather see rail service than buses. Even though I’m all about trains, this busway project makes sense.
But first, what is a “busway,” you ask? Let me explain:
A busway is a dedicated highway just for buses. In this case, it would run 9.4 miles from downtown Hartford to New Britain on an old railroad right-of-way. There would be 11 stations, each with plenty of parking like at a Metro-North station. So rather than be stuck in rush hour traffic on the interstates, you’d drive to a busway station and hop aboard for a high-speed ride to downtown.
During this past weekend, rating agency Standard & Poor’s (S&P) downgraded the sovereign debt of the United States by one notch, from AAA to AA+, with a “negative outlook,” meaning there is danger of further downgrades in the future. Other rating agencies, notably Moody’s and Fitch, are staying for now with their AAA equivalent ratings, though Moody’s carries a “negative watch.”
The United States now has a “split rating” — meaning inconsistent — from the top agencies.
There are two chief criteria that lenders consider in making a loan. The first is ability to pay. The second is willingness. No one questions the ability of the United States to pay its debts at this time. However, the circus in the House of Representatives raised the question of whether we are willing to pay, and long term, whether paralysis in our political institutions will undercut our ability to pay. As S&P stated, the downgrade reflected its view that “the effectiveness, stability, and predictability of American policy making” have weakened at a time when we face “ongoing fiscal and economic challenges.”
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