Mortgage rates hit record low again - Sep. 27, 2012

Mortgage rates hit record low again - Sep. 27, 2012

Landmark Bank Game for Android | DroidMill

Landmark Bank Game for Android | DroidMill

Autumn Time!

Hope this Fall season brings you joy and happiness!

Save the Day!

September News Letter

INTERESTING FACTS... • A bill to make Sept. 11 a day of mourning was introduced in the U.S. House on Oct. 25, 2001. On Nov. 30, it passed the House by a vote of 407-0, and passed the Senate unanimously. President Bush signed it on Dec. 18 as Public Law No. 107-89. • The first Labor Day was held celebrated in New York City on September 5, 1882 and was started by the Central Labor Union in New York City. In 1884, it was moved to the first Monday in September where it is celebrated today. • The Autumn equinox signals the beginning of Fall. It is the point where there is exactly 12 hours of daylight and 12 hours of darkness at the equator.

ALSO IN SEPTEMBER... • Labor Day – September 3 • National Grandparents Day – September 9 • Patriot Day – September 11 • Rosh Hashanah – September 17 • International Talk Like a Pirate Day – September 19 • First day of fall – September 22 • Yom Kippur – September 26

LauraGlass Mortgage Loan Manager Landmark Bank 720 E. Peyton St. Sherman, TX 75090 Office: 903-892-1800 ext. 3166 Cell: 903-271-3566 Fax: 903-892-8009 Contact Me My Website

Understanding Your Insurance Policy

Understanding Your Homeowners Insurance Policy Sept. 2012 Just as you have health insurance to protect your person and auto insurance for your car, you need the same kind of reassurance when it comes to your home as well; after all, a home is probably the largest purchase you will ever make. After submitting your home loan application, you should begin shopping for homeowners insurance immediately, and direct the insurance company to provide information about your policy to the processor. In addition, you'll need to provide proof of your homeowners insurance at closing. Sometimes called hazard insurance, homeowners insurance protects both you and your lender in the event of damage to your home. You can insure not only the physical building but also all the contents. Most mortgage lenders require borrowers to carry homeowners insurance. There are several types of homeowners insurance so be sure you understand the differences and choose the type that best fits your needs. I can refer you to a resource to help you choose an insurer; just let me know if you need assistance. Below is a breakdown of insurance types to help you better understand your options. There are three basic types of policies that homeowners with a mortgage typically purchase. HO2 — Broad Form: This policy will cover the home itself as well as other structures on the property such as a detached garage or even fencing against 15 specific "perils." This coverage also provides Homeowners personal liability coverage, which means if someone falls and is injured on your property and then sues you, your insurance company will pay a settlement if you lose the suit and may also defend you in court. The perils, or events that cause damage to your home, that are generally covered under HO2 are: Fire or lightning Windstorm or hail Vandalism or malicious mischief Theft Damage from vehicles and aircraft Riot or civil commotion Glass breakage Smoke Volcanic eruption Falling objects Weight of snow, ice or sleet Accidental discharge or overflow of water or stream Sudden and accidental tearing apart, cracking, burning, or bulging Freezing Sudden and accidental damage from artificially generated electrical current Note that floods and earthquake damage are not covered. These require separate policies in areas where these events are likely to occur. HO3 — Special Form: This is the most widely used type of homeowners insurance for single-family homes. It covers your dwelling and all detached structures against loss or damage from any peril except for those specifically listed as excluded from coverage. It is important to know what perils are specifically included and to discuss with your agent whether you will need additional insurance coverage, also called a "rider." Some perils that are generally excluded from coverage under an HO3 policy include neglect, intentional loss, smog, theft from a dwelling under construction [separate insurance is required for these structures], vermin and rodents and typical wear and tear or deterioration. HO5 — Premier Homeowner Policy: This policy covers everything in the HO3 plus additional perils. In fact, the HO5 covers your dwelling and detached structures and all the contents of your home, provides liability coverage and only excludes perils specifically listed in the policy: if damage or loss occurs because of a peril that is not listed, then that loss or damage is covered. This is sometimes called an "open peril" policy since everything is covered that is not specifically excluded. When discussing your homeowners insurance with your agent, be sure to determine whether your policy covers the actual cash value of your home or the full replacement cost. As always, if you need a referral to an experienced professional in our area I am happy to direct you to a valued colleague. Please call me with any questions!

Use Rates to create a sense of urgency

Use Rates to Create a Sense of Urgency Sept. 2012 Buy now while rates and prices are low: It's been your mantra for the last year at least. You may feel like a broken record sometimes, but we both know that now really is the perfect time to buy, that the market will change in the near future and that our clients' purchasing power will drop as rates and prices begin to rise. The question is, how do we instill that sense of urgency in potential buyers who are coasting, waiting to see if costs will drop further? Creating a sense of urgency can be accomplished by playing on clients' fears, it's true. But rather than take a negative approach, it would be better to show them the huge opportunity that is right in front of them — and then pull out some recent statistics that indicate this favorable buying climate is not going to last forever. In fact, it may already be slipping away. Fewer Choices The number of homes on the market has dropped precipitously over the last 12 months. According to the Wall Street Journal's MarketWatch, "even hard-hit areas" that suffered foreclosures and housing gluts "have seen substantial decreases in for-sale inventory." The National Association of REALTORS® says that national inventory was down 20.4% in May as compared to numbers from a year earlier. It's true that inventories haven't dropped everywhere, but this looks like a trend that will continue to spread as foreclosures slow down and sellers see other homes selling for more and more money. Rising Prices Which leads us to rising housing prices, also popping up in diverse markets across the nation. After seven straight months of declines, the S&P/Case-Shiller composite index of U.S. home prices rose 1.3% for the month of April 2012. It doesn't sound like a lot, but it is an indication of coming change. Home values rose in 18 of the 20 major markets the Index follows. This is a positive sign for home sellers and real estate agents — but borrowers need to move quickly before the prices creep up any higher. Mortgage Rates Creeping Higher According to BankRate, the two recent dips in the 30-year fixed-rate mortgage were followed quickly by jumps in interest rates. The 5/1 ARM is fairing much worse, with rates nearly double the low reached at the end of May. True, we're talking tenths of percentage points here. But it's worth reminding clients that every percentage point lowers their purchasing power by about 10 percent. In practice, that means at 5 percent, a homebuyer can pay around $1,600 per month on a $300,000 loan; but at 6 percent, $1,600 per month gets him a loan of $270,000. We can't stress it enough: it's still a buyer's market and it won't be this way for much longer. As the economy recovers, the housing market will right itself and a once-in-a-lifetime opportunity will be missed. Urge your clients to act now so they don't miss out. And please feel free to send them my way so I can show them the numbers specific to their own unique circumstances and our own area. I look forward to helping you close more deals!