Understanding Mortgage Rates and Points

1233054_10151641582021961_1311111847_oHere’s an easy-to-understand description of “mortgage rates and points”.
The interest rate determines the monthly interest payments over the lifetime of the loan. A “point” or “discount point” is equivalent to 1% of the loan amount and usually reduces or “discounts” the loan rate by an eighth of a percentage point.
For Example:
You want to get a loan for $100,000 to buy a home. Each “point” would cost you 1% of $100,000 or $1,000 but would reduce your loan’s interest rate by .125%. The lender might offer you an 8.0% loan with zero points, a 7.875% loan with one point, or a 7.75% loan with 2 points.
Points, like the down payment, are paid at closing. In some cases, lenders will allow borrowers to finance the points over the term of the loan. Lenders sometimes use points to make their interest rates appear lower. Be aware that lower interest rate offered by a lender may translate into higher points requirements.
For consistently low rates and points, contact eastmortgage!

Best of Rochester 2013 Primary Ballot

BestOf2013_teaser

Want to take the Best of Rochester survey? Click here!

Place your bets!

The 2013 Best of Rochester Readers’ Poll is here. Click on this link to take the open-ended Primary Ballot. Fill in YOUR favorites in at least 40 of the 113 categories for your ballot to count. Voting in the Primary Ballot will close promptly at 5 p.m. on Wednesday, September 4.

Then check back on Wednesday, September 11, to see which local people, places, and things made the Best of Rochester Final Ballot.

Did we screw something up? Get rid of a category you love? Neglect to add one you requested? Let us know! E-mail themail@rochester-citynews.com.

Make sure to follow City Newspaper on Facebook and Twitter for Best of Rochester updates, and for a chance to win an invitation to our exclusive invite-only Best of Rochester Party.

City of Rochester to Hold Public Meeting Regarding Inner Loop East Project

images (3)The City will conduct a public informational meeting to discuss the Inner Loop East Reconstruction Project on Wednesday, Aug. 28 at 6 p.m. in the City Council Chambers of Rochester City Hall, 30 Church St. The proposed project will eliminate a 2/3-mile segment of the Inner Loop Expressway between Monroe Avenue and Charlotte Street and replace it with a, “Complete street,” which is designed to accommodate all users including pedestrians, bicyclists, motorists and transit riders.

The project’s goal is to increase traffic safety, reconnect neighborhoods with the Center City and make available parcels of land for mixed-use redevelopment. Reclaiming this land will raise local tax revenues, create jobs and generate private investment.

“This project will benefit the entire city,” said Mayor Thomas S. Richards. “We are building a city that encourages walking, biking and enjoying the outdoor environment. Replacing this section of the Inner Loop will demonstrate the City’s commitment to fostering quality of life here in Rochester.”

The purpose of this meeting is to review the project, discuss preliminary design alternatives and solicit suggestions from the public. The project’s design consultants will give a detailed presentation and citizens can interact with City staff following the presentation.

Preliminary engineering and design is anticipated to be complete by winter 2013/2014. Final design will be complete by summer 2014 and, pending funding availability, construction may begin as soon as fall 2014.

Members of the public may contact City of Rochester Transportation Specialist, Erik Frisch at erik.frisch@cityofrochester.gov with comments and concerns prior to Sept. 15, 2013.

Additional project information is available at www.cityofrochester.gov/innerloopeast.

Rising Interest Rates Won’t Slow Down All Buyers

housing-rebound

Many of you are seeing it in the field: Low inventory, houses flying off the market and a groundswell of demand from buyers. As a result, home prices are steadily increasing.

Combine all those factors with signs of strength in the economy, and you have a recipe for another market change: higher mortgage rates.

The average for a 30-year fixed-rate mortgage jumped to 4.29 percent in early July—nearly a whole percentage point above where it was in early May, according to Freddie Mac.

While some industry watchers predict that rising rates could stall the positive momentum in housing’s recovery, I tend to agree with the school of thought that says the rebound will continue despite upward ticks over time.

Rates are still historically low compared to what they were before the recession hit, and prices are still affordable in many areas.

Will some home-buyers see a decrease in their buying power if rates climb too far, particularly young, first-timers or low-income families? Unfortunately, yes.

But it won’t affect all buyers.

Recent data reported by the MBA notes that although we’re seeing slight dips in overall mortgage applications as rates increase, conventional home loan applications are picking up by a few percentage points.

This indicates two things: 1) people with steady incomes and employment, a sizeable down payment, and strong credit are finally coming off the sidelines to buy before rates go up further; and 2) many of these borrowers are more than likely move-up or repeat buyers who saw the equity return to their homes and were able to finally sell so they could make their next move.

Recent data reported by the MBA notes that although we’re seeing slight dips in overall mortgage applications as rates increase, conventional home loan applications are picking up by a few percentage points.

Perhaps you know of potential buyers who have been waiting for the bottom of the market. If what we’re seeing is any indication, the bottom has come and gone. We’re in a steady recovery, and now’s the time to encourage those would-be buyers to explore their options. It’s worth noting, though, that home prices and mortgage rates could go up more as demand continues to outpace existing supply and new construction.

These recent market shifts are an opportunity for you to shine a spotlight on your professional expertise, as well as employ creative marketing strategies to communicate these trends to your entire database of contacts. Use local and national statistics to show them what’s happening in real estate.

If you know of potential buyers who’ve been waiting it out, tell them what’s going on in frank terms, then connect them with a trusted lender who will show them what their monthly payment might look like at the current mortgage rate for a property within their price, as well as a comparison of what it might be if rates reach 5 percent or more. Seeing the numbers in black and white could be the impetus indecisive buyers need to make their big move.

It’s natural for some people to panic a little when they see home prices and mortgage rates make big jumps, but it’s an inevitable part of the crests and troughs of a housing cycle. Remind home-buyers and sellers of your value by giving them the facts without the frills. With the right approach, you’ll help get those buyers and sellers off the sidelines and back into the game.

For more information regarding mortgage rates or your housing needs contact us at adim@rochesterhomesplus.com

Fairport Music and Food Festival

Fairport Food

People of all ages will fill the Village of Fairport, from noon to dark, Aug. 24, to celebrate the end of summer while benefiting a great cause. The canal-side Fairport Music and Food Festival will feature live music, a variety of food from area restaurants and food trucks, and children’s activities! All proceeds from the event benefit Golisano Children’s Hospital at the University of Rochester Medical Center (URMC), with a total of more than $500,000 raised in the event’s history.

This year’s Fairport Food and Music Festival will showcase 22 bands across three stages, for a total of 10 hours of live entertainment. Kids’ entertainment includes an arts and crafts table, rock wall climbing, bounce house, and appearances by the Magic Guy and Gadgets the Clown. Representatives from Kohl’s Pedal Patrol and the Rochester chapter of the Injury Free Coalition for Kids will also be handing out bike safety information and have a carnival-style spin-the-wheel game, with a prize give-away, at the Golisano Children’s Hospital booth.

To pre-order tickets and find out more about the event, click here.

Rochester ranks No. 1 on the Housing Market Recovery Index

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Rochester topped the list of markets with the strongest signs of recovery in the housing market, a national housing data index released Monday shows.

The Housing Market Recovery Index, released by RealtyTrac, said Rochester ranked so well due to below-average unemployment, underwater and distressed sales percentages, combined with above-average drops in foreclosure activity and increases in home prices.

In addition to Upstate New York, other areas showing strong recovery are in southwest Florida and the Bay Area of northern California, while markets in northern Maryland, southeast Pennsylvania and downstate Illinois are lagging the furthest behind in the recovery.

“The U.S. housing market has clearly shifted to recovery mode over the past 18 months, with home prices consistently rising and foreclosures falling closer to pre-housing bubble levels,” said Daren Blomquist, vice president at RealtyTrac, in a statement. “Still symptoms of the distress that plagued the housing market over the past seven years continue to linger, particularly in the form of a high percentage of underwater borrowers and distressed sales.

“This lingering distress is creating an uneven pace of recovery across different local markets.”

The index was calculated based on seven different factors relating to the health of the real estate market: unemployment rate, underwater loans percentage, foreclosure activity percent change from peak, distressed sales percent of total sales, institutional investors share of total sales, cash purchases share of total sales, and median home price percent change from bottom.

Those seven factors were indexed for each market with national averages as a baseline, and all seven indexes were averaged to calculate a total recovery index.

RealtyTrac ranked 100 major U.S. metros based on this total recovery index, but data is available for more than 900 metro areas nationwide. California-based RealtyTrac is operated by Renwood RealtyTrac LLC.

(c) 2013 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail service@rbj.net.

RE/MAX Files Registration Statement for Proposed Initial Public Offering

 

(Denver, CO) – RE/MAX, one of the world’s leading franchisers of real estate brokerage services, today announced that it has publicly filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission relating to a proposed initial public offering of its common stock. The RE/MAX brand name has held the number one market share in the U.S. and Canada since 1999.  The timing, number of shares to be offered and the price range for the offering have not yet been determined. RE/MAX intends to apply to list its common stock on the New York Stock Exchange.

Morgan Stanley, BofA Merrill Lynch and J.P. Morgan will act as joint book-running managers for the offering. Perella Weinberg Partners is acting as advisor to RE/MAX.

Copies of the preliminary prospectus relating to the offering may be obtained, when available, from Morgan Stanley, Attention: Prospectus Department, 180 Varick
Street, 2nd Floor, New York, NY 10014, or telephone: 1-866-718-1649, or email: prospectus@morganstanley.com; BofA Merrill Lynch, 222 Broadway, New York,
NY 10038, Attn: Prospectus Department or email: dg.prospectus_requests@baml.com; or J.P. Morgan, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or telephone: 1-866-803-9204.

The registration statement relating to these securities has been filed with the SEC, but has not yet become effective. The registration statement had previously been
submitted on a confidential basis under the Jumpstart Our Business Startups (JOBS) Act of 2012. These securities may not be sold, nor may offers be accepted,
prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these
securities, nor may there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or jurisdiction. The proposed offering will be made only by means of a prospectus.

# # #

About the RE/MAX Network:
RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording RE/MAX agents and franchisees the flexibility to operate their businesses with great independence. With over 90,000 agents and a global reach of more than 90 countries, RE/MAX is recognized as one of the world’s leading franchisers of real estate brokerage services. Nobody sells more real estate than RE/MAX.

RE/MAX Myth Buster

Nicki ThompsonA Colorado top producer discovers that rumors don’t match the reality of RE/MAX

By Keith Miller

Nicki Thompson sums up her decision to join RE/MAX with one word: harmony. “I’ve found harmony in my life at RE/MAX,” says the top-producing agent with RE/MAX Alliance in Arvada, Colo., near Denver.

“I’m in a very good place. I’m content, but never complacent.”

A former Coldwell Banker agent, Thompson says her career has blossomed since joining RE/MAX in 2008. Last year, she reached Platinum Club status after two years in the 100 Percent Club.

At the same time, she has more time to spend with her family and get involved in the community. Thompson is an active member of her local chamber of commerce and has chaired the Arvada Young Professionals group. She’s even found more time for her favorite activities: swimming, competing in triathlons and having fun with her three children.

It wasn’t always this way. At Coldwell Banker for six years, Thompson began feeling like she had reached her peak. She worked long hours, and although she was a top producer in her office, she felt constrained.

“I was a big fish in a little pond,” Thompson says. “I reached a place in my career where I wanted to be challenged.”

Thompson often sat across from RE/MAX agents at the closing table. They appeared happy and very productive. She began considering RE/MAX herself. Then the voices of doubt would come, as she recalled the cautionary tales she heard around the office: “RE/MAX doesn’t offer any support,” “You’re on your own at RE/MAX,” and “So long to education.”

So what ultimately tipped the scales? How did Thompson know RE/MAX was the right choice?

She researched and ultimately debunked the RE/MAX myths.

myth 1

There’s no education.

nicki busted

After she made the switch, Thompson discovered a world of education. She regularly takes advantage of RE/MAX University programming and earned the Certified Distressed Property Expert (CDPE) designation right after joining the network.

“The reality turned out to be much different than what I had thought,” she says. “The amount of available education was one of the biggest surprises for me.”

myth 2

You’ll be on your own.

nicki busted“My concern that I was leaving a family atmosphere and would be by myself ended up being completely unwarranted,” she says. “Once I joined RE/MAX, I was amazed at the support and culture of teamwork and mentorship.”

Now, as a more experienced agent, Thompson thoroughly enjoys sharing her own wisdom with others.

“It’s not just a receiving relationship; you have to give as well,” she says. “I know numbers and analytics, and enjoy sharing that expertise. It creates a very collaborative and empowering work environment for everyone.”

myth 3

The fees are prohibitive.

nicki bustedThis myth was crushed with a spreadsheet. As a numbers and statistics enthusiast, Thompson tallied her potential income with RE/MAX and saw the stark difference for herself.

“This one was easy,” she says. “The numbers made sense from the get-go. It was overcoming the other concerns that initially made me more hesitant to change.”

myth 4

There will be no time for yourself.

bustedWhen Thompson worked with RE/MAX agents at closings, she got the sense this was far from true. Her RE/MAX Broker/Manager, Phil Shell, made a statement that ultimately tipped the scales for her to join.

He told her, “Don’t let your business run you; you run your business.”

With RE/MAX, Thompson found the work-life balance she was looking for.

“When I walk in the house, my phone is off and my attention is on my family,” she says. “I’m able to leave my business at the office.”

MORE GOOD MOVES

These experienced Associates can definitely relate to Nicki Thompson’s journey. Here’s why they recently joined RE/MAX.

I wanted to be part of a highly recognizable, global brand with a local presence. The office I joined is centrally located in an up-and-coming resort town, and the brand presence of RE/MAX provides a huge advantage. My Broker/Owners and the office staff provide everything I need to be more effective.

– MARY BETH BUCKLES, RE/MAX SIGNATURE SERVICES, DANA POINT, CALIF. (JOINED 2013)

The RE/MAX brand is powerful. There’s a sense of pride and name recognition that was absent when I worked for smaller companies. After 20 years in real estate, I was very confident in my knowledge, but I’ve been blown away by all that I’ve learned through RE/MAX courses and education – and particularly how much is offered through RE/MAX University.

– DARLIN GUTTERIDGE, RE/MAX MOSAIC PROPERTIES, GILBERT, ARIZ. (JOINED 2012)

I’ve been very impressed with the strategic, administrative and transactional support. I’ve also been surprised by the corporate support. In one instance, I called asking for materials for The RE/MAX Collection. They delivered a package the next day, and I was able to use everything in a presentation. I ended up getting the listing. I should have joined RE/MAX sooner!

– NATALIE VIZIR, RE/MAX SIGNATURE SERVICES, DANA POINT, CALIF. (JOINED 2013)

My Broker/Owner’s marketing expertise and real estate knowledge are incredible assets. I love that I can truly be an independent contractor in charge of my own destiny and success. I can achieve this with the support and opportunities for growth through REMAX University and Mainstreet. The RE/MAX Design Center gives me countless ways to make my listings stand out and wow clients. There’s no other real estate company that offers anything close.

– NANCY BENARD, RE/MAX ULTIMATE PROFESSIONALS, SHOREWOOD, ILL. (JOINED 2012)

We wanted to take full advantage of the recovering market and evaluated several companies. By joining RE/MAX, we affiliated with the strongest horse in the race. RE/MAX has proven to be the most powerful and easily recognizable brand in real estate – and the most dominant in our local market. When we told our clients about our move to RE/MAX, they were very pleased, and liked knowing how much more exposure their listings would receive.

– GERRY FRASER AND GEORGE PATRIDGE, RE/MAX KELOWNA, KELOWNA, BRITISH COLUMBIA (JOINED 2013)

IMPORTANT TIPS TO DO WHEN BEHIND ON YOUR MORTGAGE PAYMENTS

Home-Affordability-Calculator

What happens if you go through a tough financial period and you find yourself behind on your mortgage payments for your home?

If you are missing mortgage payments and are having difficulty paying, this can become a serious problem. Even just one missed payment can be difficult to catch up on, and if you are in this situation it is important to get help right away.

Contact Your Lender

The first step in this circumstance should be to get in touch with your mortgage lender to explain the situation. Simply leaving things alone and not explaining why you have missed a payment will just make things worse.

When people are struggling financially, they avoid calling their creditors for as long as they can. This is usually the wrong strategy to have if you want to make sure that you keep your home.

When you speak to the lender, you can explain why your payment is overdue. For example, perhaps you were laid off from your job or you have been sick and unable to work. If you have a good payment history and you are the one to initiate contact, the lender may be more likely to consider options for you to repay the mortgage.

Consider All Of Your Options

Is there a relative or a friend who could lend you enough money to pay off your missed mortgage payment? Could borrow from your insurance policy? Is there a way you can sell something that you are not using or cut back on other expenses?

Perhaps you could work a part time job on the side to earn more money. There are a number of ways that you could come up with the extra cash and make the mortgage payment.

However, be careful with payday loan companies or other short term lenders, as they may charge extremely high interest that can make it even more difficult to get out of debt later.

Loan Modification

In some circumstances, you might be able to arrange with your loan servicer to permanently change one or more of the terms of your mortgage contract so that your mortgage payments will be more manageable for you.

This could include reducing your interest rate, adding the missed payments to the loan balance or extending the term of the loan. A loan modification can be a good idea if you are facing a reduction in your income that will last for an extended period.

If you are struggling financially and you have missed a mortgage payment, don’t panic. Instead, follow these steps to make sure that you deal with the situation well and get back on track.

To find out more about getting a mortgage on your home, contact your trusted mortgage professional today.

Businesses ‘tee up’ for Webster Comfort Care Home

Rick RockWebster, N.Y. —

The Webster Golf Club’s Ladies’ Association is making plans to sponsor its third annual “Fairways for Caring” golf tournament to benefit the Webster Comfort Care Home. The event is set for Friday, Aug. 23.

Webster Comfort Care is a volunteer-driven organization that provides a compassionate home for individuals who are in their final months, weeks and days of life.

Local businesses already lined up as corporate sponsors include Rocky Mountain Granite & Marble, BayTowne Plaza, Canandaigua National Bank, Gregg Layer from Marathon Financial, Dave McBride from Stanley Steamer, DC Collision, DSB Engineers & Architects, Flaherty’s, Invex Investigation Agency, Thomas Leonardo from John Hancock Financial Network, Q-Tech Engineering, Ron’s Auto, Rick Rock from RE/MAX Plus Commercial Division, SPINERGY, and Glen Skalny from VanZile Travel.

Silent auction items have already been donated by Casa Larga Vineyards, Century Liquor and Wines, Cobblestone Creek Country Club, The Goodie Shoppe, Hatter’s Pub, Hedges, Seneca Niagara Casinos, Shadow Pines Golf Club, and the Webster Golf Club Pro Shop.

“This (event) is a wonderful opportunity to show our support for the Webster Comfort Care Home as they celebrate their 10th anniversary serving our community,” said Joel DiMarco, of BayTowne Plaza.

There is still time for businesses and individuals to help by sponsoring the event, donating items for the silent auction or buying raffle tickets at Webster Golf Club for a 42-inch RCA TV.

For more information on how you can help, call Linda Dorsey at (585) 451-5456 or Liz Hill (585) 355-2300.

Read more: http://www.websterpost.com/events/x1808716729/Businesses-tee-up-for-Webster-Comfort-Care-Home#ixzz2bNkOaCqW