Origins of Halloween

 

Halloween is an annual holiday celebrated each year on October 31. The history behind it and its costumes originated with the ancient Celtic festival of Samhain before the holiday found its way to colonial America.

Halloween’s origins date back to the ancient Celtic festival of Samhain (pronounced sow-in). The Celts, who lived 2,000 years ago, mostly in the area that is now Ireland, the United Kingdom and northern France, celebrated their new year on November 1.

This day marked the end of summer and the harvest and the beginning of the dark, cold winter, a time of year that was often associated with human death. Celts believed that on the night before the new year, the boundary between the worlds of the living and the dead became blurred. On the night of October 31 they celebrated Samhain, when it was believed that the ghosts of the dead returned to earth.

In addition to causing trouble and damaging crops, Celts thought that the presence of the otherworldly spirits made it easier for the Druids, or Celtic priests, to make predictions about the future. For a people entirely dependent on the volatile natural world, these prophecies were an important source of comfort during the long, dark winter.

To commemorate the event, Druids built huge sacred bonfires, where the people gathered to burn crops and animals as sacrifices to the Celtic deities. During the celebration, the Celts wore costumes, typically consisting of animal heads and skins, and attempted to tell each other’s fortunes.

When the celebration was over, they re-lit their hearth fires, which they had extinguished earlier that evening, from the sacred bonfire to help protect them during the coming winter.

By 43 A.D., the Roman Empire had conquered the majority of Celtic territory. In the course of the 400 years that they ruled the Celtic lands, two festivals of Roman origin were combined with the traditional Celtic celebration of Samhain.

The first was Feralia, a day in late October when the Romans traditionally commemorated the passing of the dead. The second was a day to honor Pomona, the Roman goddess of fruit and trees. The symbol of Pomona is the apple, and the incorporation of this celebration into Samhain probably explains the tradition of bobbing for apples that is practiced today on Halloween.

Halloween Comes to America

The celebration of Halloween was extremely limited in colonial New England because of the rigid Protestant belief systems there. Halloween was much more common in Maryland and the southern colonies.

As the beliefs and customs of different European ethnic groups and the American Indians meshed, a distinctly American version of Halloween began to emerge. The first celebrations included “play parties,” which were public events held to celebrate the harvest. Neighbors would share stories of the dead, tell each other’s fortunes, dance and sing.

Source: Halloween 2019

31 Fun Facts About Florida

“Florida” means “flowery” in Spanish

Florida is not the southernmost U.S. state in the United States. It’s Hawaii.

Florida became a U.S. Territory in 1821 with General Andrew Jackson as military governor.

4th most populous state in the U.S., Florida has population of almost 20 million

For more facts click in the link.

Link: https://www.raiseyourbrain.com/fun-facts-about-florida/

8 signs you’re ready to buy a home!

Renting a place to live may give you the freedom to move when you want and relieve you of the responsibilities of homeownership, but at some point, most people yearn for their own home.

Buying a house is a good way to start building financial security. As you pay down the mortgage, you build up home equity, which is a valuable financial resource.

Mortgage rates are low right now, so if you think you’re ready to buy a home, it’s a good time to make the move. “For prospective and actual homebuyers, the decline in mortgage rates has provided a much-needed boost to housing affordability,” says Mark Hamrick, senior economic analyst for Bankrate.

Deciding whether to rent or buy a home is a major decision. How do you know you’re ready? Here are eight signs that you’re ready to make the switch from renter to homeowner.

1. You’re tired of rising rent prices.

Rental prices are on the rise nationwide, according to ApartmentGuide, which tracks trends in the rental market. The average rent on a one-bedroom unit climbed 4.2% in 2018, to $1,140; two-bedroom units rose to $1,354 and studio apartments rose 5% to $1,065.

Rising rent makes it harder to budget for monthly housing costs and to save for other financial goals. When paying rent begins to feel like a bad investment and you want to build equity for the future, it’s time to figure out what loan you qualify for, says Bill Golden, a sales associate with ReMax Around Atlanta who has more than 30 years in the real estate business.

Golden says many renters are ready to buy a home once they are financially stable. Many are motivated by the pride of ownership and wanting more control over their dwelling place.

“If one or more of those is tugging at your heart, at least look into the possibility of owning rather than renting,” Golden says.

2. Your credit score has improved.

Some renters are locked out of homeownership because they can’t qualify for a mortgage. A low credit score is a common reason why renters can’t make the leap to purchasing a home. A history of late payments and too much debt will hurt your score.

One sign that you’re ready to buy a home is having a healthier credit score, says Bruce McClary, vice president of communications for the National Foundation for Credit Counseling in Washington, D.C.

Although borrowers with a credit score as low as 500 can qualify for some home loans, they will be required to make bigger down payments and pay higher mortgage rates. A good credit score gets you better interest rates and loan terms.

Before you apply for a mortgage, get a free copy of your credit report.

3. You’re good at managing debt.

Another thing lenders look at when screening mortgage applicants is their debt-to-income ratio, or DTI. This is a key metric that’s calculated by adding up all monthly debts, then dividing the sum by your gross monthly income. The higher your DTI ratio, the more risk you pose to a lender.

Some conventional loans allow a DTI ratio of up to 50 percent, but many lenders prefer a ratio of no more than 43 percent. If you previously had a high DTI ratio and have since paid off some high balances, you’ll be in a stronger position to get a mortgage.

You’ll also have more wiggle room in your budget to put money into an emergency fund for home repairs.

4. You have enough set aside for the ext ra costs of owning a home.

When a pipe bursts or the air conditioner goes out in a rental unit, you don’t have to worry about paying for it; that’s the landlord’s responsibility. The same goes for property taxes, routine maintenance and homeowners insurance.

That’s not the case when you own a home. All those costs are your responsibility.

“Clearly, if you put everything you have into the down payment and such to buy a house, then you have no money to do repairs should they come up,” Golden says. “You’re better off spending less on the house so you have some money to make improvements and repairs.”

5. You can afford the down payment and closing costs.

“First-time homebuyers don’t have proceeds from another home to help fund the down payment. It’s one of the main reasons why the down payment is the biggest hurdle to homeownership,” says Rob Chrane, CEO of Atlanta-based DownPayment Resource, which finds programs that help people buy homes.

The down payment requirement depends on the type of home loan you get. For conventional loans, 20% down is usually required if you want to avoid paying private mortgage insurance, or PMI. Some mortgages insured by the Federal Housing Administration, known as FHA loans, require just 3.5% down. Fannie Mae and Freddie Mac back some mortgage products that require just 3% down; and loans guaranteed by the U.S. Department of Veterans Affairs and the U.S. Department of Agriculture (USDA) require no down payment.

Renters interested in buying a home should compare different loan programs to see which one is best for them.

Another expense you have to be ready for is the closing costs, which typically equal 2% to 7% of the property’s sale price.

6. You’re ready to settle down in one place.

Buying a home involves a lot of upfront costs that can take a few years to recoup, so if you anticipate moving before you can recover those costs, homeownership might not be right for you.

No one works at the same company for decades anymore, but a renter who is ready to buy a house should have job security, says Hamrick. A stable job means stable income, which lowers the risk that you will stop making your mortgage payments and default on the loan.

7. You’re going through a major life change.

Many renters decide to purchase a home after a major life event, such as getting married, says Henry Yoshida, a certified financial planner and CEO of Rocket Dollar, a Texas-based provider of self-directed retirement accounts.

Marriage, a growing family, a new job and children leaving the nest are catalysts for people to buy a home.

8. You know what you want.

It’s smart to have a good idea of the area or neighborhood you want to live in and the type of home you want before you begin your quest. Houses, townhouses, condos, co-ops, duplexes — there are lots of options out there and each one has its own considerations for costs, upkeep and personal enjoyment.

If you buy a condo, for example, you don’t have to do the yardwork, but in addition to your mortgage, you must be able to afford the homeowners association fees.

Determine what you need and what is most important to you.

If you’ve moved to a new city or state to take a job, it might be a good idea to rent until you’ve familiarized yourself with the area.

Source: 8 signs you’re ready to stop renting and buy a home

Boo! Scary, creepy things to do at Halloween time on the Treasure Coast

 

These are the terrifying haunted houses and creepy ghost tours in Port St. Lucie, Fort Pierce, Vero Beach, Sebastian, Fellsmere and Port Salerno.

Source: Boo! Scary, creepy things to do at Halloween time on the Treasure Coast

Which is better: An existing home, or a new build?

 

There’s something so appealing about a new house: the smell of fresh paint, the unmarked floors, the appliances that still have plastic-wrapped warranty information inside.

But … there’s something so appealing about a lived-in house, a place that has proven it can weather a storm, maybe with gorgeous oak floors hidden under linoleum, rose bushes that come up to surprise you in the spring and character that can’t be bought.

Which one is right for you?

It’s a personal decision, but, like most real estate choices, driven by location and price. And, in this tight sellers market with a low inventory of houses for sale, by what’s available.

Rebecca Beers remembers looking for a new house as it became clear her family of four was growing out of their first house. Rebecca and her husband, Brett, knew they didn’t want to move out of Saratoga County, but there was nothing in their price range — under $400,000 — they liked. They decided to build in Milton and hired McPadden Builders.

“We took this route because the inventory wasn’t there and what we did find would have been a huge compromise,” Beers said. “If we were going to increase our mortgage payment, we wanted what we wanted, not what someone else wanted.”

Construction of the Beers’ four-bedroom, 2,364-square-foot house took six months, a reasonable time locally for new residential construction of that size. There were hurdles: the Beers sold their house in Saratoga Springs, moved into temporary housing, then moved again when their new home was complete. It was worth it, Beers said.

“It was exciting to walk into a fresh, clean slate and know it’s yours,” she said.

However, there are not nearly enough houses being built to stabilize the inventory slump.

Market data provided by the Greater Capital Association of Realtors continues to show a drop in pending and closed sales. In its latest report, GCAR summarized: “The lack of affordable inventory and the persistence of historically high housing prices continue to affect the housing market, leading to lower-than expected existing home sales at the national level.”

In other words, the lack of houses on the market is driving the price up all around and new construction is out of reach for many buyers.

“There’s a specific buyer for new construction: No requirement to sell a house, have at least 10 percent to put down and be more affluent because the price per square foot is going to be higher,” said Alex Monticello, who owns Monticello Real Estate and has been in the business for 10 years. “Plus, you pay up-front for upgrades, and no builder will build on a contingency — if you sell your house, then you can move forward.”

Real estate agent Jamie Mattison of 518 Realty, who has sold both new construction and existing homes, pointed to one of his current listings as an example of getting a better deal buying a resale versus new.

The house, at 1 Countryside Court in Glenville, is 4,056 square feet on a 4-acre lot and has five bedrooms and four bathrooms. The house was built in 2004, and according to county tax records is assessed at $557,000. It’s listed at $564,900.

Mattison estimates it would cost close to $850,000 to build the same house today because of building code changes that have increased construction expenses; a shortage of skilled workers; an increase in the cost of upgrades and the scarcity of big pieces of buildable land close to the area’s downtowns.

Cindy Quade, the owner of Signature One Realty Group and a real estate agent for 35 years, said a buyer’s timeline is an important factor after budget. In some cases, a builder will have a spec house ready for a buyer.

“There’s a lot of peace of mind that comes with a warranty,” Quade said.

New York state has what’s called a housing merchant implied warranty, which means the buyer and builder don’t have to draw one up for it to be in place. The warranty covers the construction, materials, appliances, systems, and building components of a home for one year.

Quade brought up other things to consider when buying new.

“Take into consideration how long you will be in the home; if it’s a large neighborhood and you won’t be there long, you might compete with the builder when you put the house on the market and the neighborhood isn’t built out yet,” Quade said.

Older homes, Quade said, usually have the benefit of their value growing over time.

Regardless of whether you choose to hire a builder or buy an existing house, do your research.

“Talk to at least three people who have had a house built by the builder and get feeback. Reputation is very important,” said Jay Christiana, owner of Berkshire Hathaway HomeServices Blake and president of GCAR. “Look at the details in other homes and check with the local homebuilders association.”

Source: https://www.timesunion.com/living/article/Which-is-better-A-existing-home-or-a-new-build-14543985.php

Millennials: Smart Strategies to Build Credit

 

For millennials, building a good credit score can be challenging. Consumer Reports offers simple steps for improving your credit score and keeping it high.

Recent data from the credit bureau Experian found that the average FICO score for millennials (those between ages 23 and 38) jumped from 647 in the second quarter of 2014 to 668 in the same quarter of 2019.

That places the typical millennial’s credit score in “fair” category, within striking distance of the “good” category, which starts at 670, according to Experian. A good credit rating will let you qualify for a loan at a decent interest rate.

Brush Up on Credit Basics

To improve your finances, you need to understand how credit works. But most Americans don’t know the fundamentals of credit scores, according to a survey by the nonprofit Consumer Federation of America and VantageScore Solutions, a credit score company. Millennials showed the lowest level of knowledge about credit compared with older generations, with only 56 percent scoring in the good or excellent range.

“Millennials often don’t make an effort to understand credit scores because they underestimate the stakes involved, such as a drop in their credit score of 30 or so points every time they make a late loan payment,” says Steve Brobeck, a senior fellow at the Consumer Federation of America.

In the survey, nearly 4 out of 10 millennials were unable to identify key strategies that can raise their credit scores or maintain a high one, including making timely payments and keeping their balances low. (More on that below.)

To learn the fundamentals of credit scores, you can start with our articles on credit success and how credit is scored.

Review Your Credit Report

It’s crucial to check your credit report periodically at the three major credit reporting agencies—Equifax, Experian, and TransUnion. That data is used by FICO and other companies to create your credit score. But there are often problems with the accuracy of that information, according to the Consumer Financial Protection Bureau, such as a wrong name on the file or accounts listed that belong to another person with a similar name.

Problems in your credit report may also result from identity theft. The growing number of data breaches means that criminals can gain access to your personal information and open fraudulent accounts in your name.

You’re entitled by law to a free credit report once a year from each of the three major credit bureaus. Go to AnnualCreditReport.com to ask for a report from one of the companies. Four months later request a report from a second company; follow up in another four months with the third company. That way, you can continually monitor the accuracy of your reports.

Sign Up for a Starter Card

For younger millennials, a simple way to start building credit may be to become an authorized user on their parents’ credit cards or those of other family members. Or if you’re still in college, you may qualify for a student credit card with low spending limits. Recent grads may be offered a new card.

Another option may be to sign up for an introductory offer from a retailer, who may give you a discount just for enrolling. But be aware that many store credit cards carry high interest rates, so you may run into trouble if you don’t pay off the balance each month, says Matt Schulz, chief industry analyst at CompareCards.com.

If you have trouble qualifying for a credit card, perhaps because of a poor credit score or short credit history, consider a secured credit card. Offered by most major issuers, these cards require you to put down a deposit, typically $200 or more, to protect the issuer in case you don’t pay. Spending is limited each month to the amount you have on deposit.

“With secured cards, the goal is to charge small amounts and pay the balance on time each month to establish your credit,” says Schulz. You get the deposit back when you upgrade to a regular credit card, which might take a year or more.

Before signing up, check that the card issuer reports your history to all three credit bureaus, because some smaller issuers only report to one, Schulz says.

Consider Alternative Scores

For those struggling with poor scores, credit companies now offer options that include alternative data, which can help demonstrate financial health. With Experian Boost, consumers give the credit bureau access to their banking data to show their payment histories. Experian only takes into account positive information and will stop using the data at the consumer’s request.

Another alternative service, UltraFico, focuses on how well the consumer manages money, including avoiding bounced checks and maintaining positive balances.

You won’t get a huge score increase from these services, perhaps 13 to 16 points, says McClary. Still, if you’re close to a score that would give you a more affordable rate, it could help.

Pay Down Your Balance

Managing your credit card balance consistently has the biggest impact on your credit score. That includes limiting how much you charge, as well as making timely payments.

If you charge a lot on your cards relative to your credit limit, that can hurt your credit score. As a guideline, aim to carry balances that account for no more than 30 percent of your overall credit limit, says Schulz.

You also need to keep close track of your payment due dates. Making payments on time is the single largest factor in your credit score, accounting for 35 percent, according to FICO.

Having your credit card payments automatically deducted from your bank account each month is a great way to make sure you don’t miss one, says Rob Oliver, a fee-only certified financial planner in Ann Arbor, Mich. (Get more tips on keeping up with your credit card payments.)

If you find yourself running short of cash and can’t pay off the entire balance, be sure to make at least the minimum payment. “Missing a payment is much worse for your score than not paying off the entire balance,” says Oliver.

Source: Smart Strategies for Millennials to Build Credit

What to know before refinancing your home loan

 

Question: What should I consider when deciding whether to refinance my mortgage?

Answer: Consider how many years remain on the loan you have and how much longer you will stay in your home. From there, look at the costs of obtaining a new loan compared to the amount of interest it will save you. Be careful not to base your analysis just on the cash-flow savings. Lowering your interest rate but resetting the loan to 30 years without having a plan to leverage the savings on the refinance may cost you more in the long run. A homeowner expecting to move in the next couple of years probably does not need to refinance. Homeowners in adjustable rate mortgage loans and those homeowners with private mortgage insurance may want to take advantage of low interest rates to reset their ARM, move into a fixed rate, and/or remove or reduce their mortgage insurance.

Q: What is the difference between a loan with closing costs and a “no cost” loan?

A: All loans have closing costs, it’s just a matter of who pays them. There is no free lunch. In a standard refinance, the closing costs — costs associated with establishing a new loan such as appraisal, title and lender fees — are typically rolled into the loan. An alternative is to opt for a “no cost” loan, which substitutes a slightly higher interest rate in lieu of costs. This higher rate provides the lender a premium when they sell the loan and that premium is fronted by the lender to pay closing costs on behalf of the borrower. For homeowners who may not remain in their home for many years to come or for those who think they will perhaps refinance again soon, a “no cost” refinance is a good way to take advantage of lower rates without losing any equity. Any time you can lower your rate and not lose any equity, it generally makes sense to do so. If it’s a long-term mortgage, the “no cost” option will generally cost you more over time than just opting for the lowest rate and paying standard costs.

Q: When should a homeowner consider an adjustable-rate mortgage or ARM?

A: The most popular ARMs carry fixed rates for the first five, seven or 10 years and are based on a 30-year term. Most homeowners choose a 30-year fixed rate loan given their intention to stay in their home long term, though they often fail to consider how long they will hold onto the mortgage. Refinancing occurs for reasons besides lower rates, including removal of mortgage insurance, pulling cash out for home improvements, debt consolidation and combining a first and second mortgage.

Q: When is private mortgage insurance (PMI) required? How can I avoid it?

A: Private mortgage insurance is generally required when less than a 20 percent down payment is made on a home purchase or when the homeowner owes more than 80 percent of the appraised value (less than 20 percent equity) in the case of a refinance. There are multiple ways to deal with PMI. Monthly payments is the most traditional. On conventional loans, which are loans backed by Fannie Mae and Freddie Mac, the monthly PMI drops off automatically when the loan balance equals 78 percent of the original value of the home at the time the mortgage was originated. Homeowners can apply to remove the mortgage insurance sooner if they believe they have achieved 20 percent equity, though those applications are not always approved. Additional options to avoid PMI include paying the mortgage insurance premium in full upfront, accepting a slightly higher rate in lieu of mortgage insurance, or taking two mortgages to avoid PMI.

Q: Should I finance the closing costs in a refinance?

A: Most homeowners choose to roll the closing costs into a refinance to avoid having to pay those costs out of pocket. It’s usually a negligible difference in payment to roll the costs in. The main drawback of rolling in closing costs is an increase in your principal balance.

Q: Why do I need to set up escrows for taxes and insurance?

A: When refinancing a mortgage, you’ll have settlement charges. There are two separate but distinct categories of settlement charges. The first is closing costs, which are the fees incurred to establish the new mortgage. The second is “pre-paids” or “escrows,” which are the moneys put aside upfront to account for future property tax and homeowner’s insurance liabilities. When you refinance, you establish a new escrow account for taxes and insurance. Once your old loan is paid off, your existing lender will send you a refund of the balance in your old escrow account approximately 30 days after closing. Keep in mind that you will also skip a mortgage payment in the month immediately following your settlement. For this reason, it is advisable that you bring the moneys required to establish the escrow account on your new loan to settlement if you can afford it.

Q: What should I consider when pulling out cash as part of my refinance? Will doing so cost me more?

A: If you have the equity to do so, pulling cash-out as part of your refinance can be an attractive option to finance home improvements, consolidate high-rate debt, or finance large expenses, such as college or weddings. Depending how deep into your home’s equity you borrow, pulling cash-out could negatively impact the rate you can obtain. If pulling some cash out will result in having to accept an elevated rate on your mortgage, you may want to refinance first and then add a home equity line of credit to extract equity from your home.

Q: I want a really low rate for my mortgage. How can I time it so I get the best rate possible?

A: Timing your mortgage lock is like timing the stock market, it’s a lost cause. The better approach would be to establish a target rate that justifies the cost of refinancing and then work with a professional that understands the factors that impact mortgage rates daily to monitor that target rate for you and lock if/when it is achieved.

Q: How can I save on my closing costs?

A: You can opt for a slightly higher rate and a “no cost” option (see above). In terms of specific costs, title insurance can be one of the largest costs when refinancing. Most settlement companies will offer a “reissue” rate on your new lender’s policy of title insurance when you present the owner’s policy of title insurance that you obtained when you purchased your home. This savings can be as much as 30 percent to 40 percent of the premium required for the new policy.

Q: Rates are low. Is it worth it to pay points?

A: Points are essentially an upfront payment of interest in exchange for a lower rate. I’m generally not an advocate of paying points as they add to the sunk costs on a loan and extend your break-even point. Rates are surprisingly low right now. No one predicted they would be where they are and folks who paid points in recent years wasted their money in doing so. Mortgages rarely stay on the books as long as a homeowner thinks they will and paying points further impedes you from taking advantage of lower rates in the future. That said, when considering paying points, the two factors that should be in alignment are that you believe you will keep the mortgage a long time and that rates are at or near historical lows.

Q: Now that I have refinanced and saved money, what should I do with my savings?

A: To really maximize the impact of a refinance, consider redirecting the money you saved into other areas of your financial life. You could expedite your retirement date by adding more to your employer sponsored retirement plan, establish or increase payments to a 529 savings plan for college, put the proper insurance policies in place for you and your family. If you’ve taken care of all that, you could choose to funnel the savings back into the principal on your new mortgage, pay it down sooner, and save thousands in interest, though of course there may be an opportunity cost in doing so.

Source: What to know before refinancing your home loan

10 Acronyms Homebuyers Need to Know

 

PMI, APR, LTV…these unfamiliar acronyms don’t need to bewilder or intimidate uninitiated homebuyers.

To help you negotiate the homebuying process like a pro, Freddie Mac is sharing definitions of 10 key acronyms you’ll encounter as you meet with lenders, make a down payment and pay back your loan.

APR (Annual Percentage Rate)

The APR tells you the annual cost of borrowing money based on the loan amount, interest rate and certain others fees. Use it as the bottom-line number to shop and compare rates among lenders.

FRM (Fixed-Rate Mortgage)

The most common type of mortgage, an FRM, has an interest rate that doesn’t change, giving you stability over the life of the loan.

ARM (Adjustable-Rate Mortgage)

An ARM usually offers lower monthly payments at the outset, but after three, five or seven years, payments change with interest rates and reset periodically.

LTV (Loan- to-Value)

The LTV ratio equals the amount of money borrowed divided by the home’s appraised value. It shows how much of your home you own versus how much you owe, and lenders use it to help evaluate the risk and terms of your loan.

DTI (Debt- to-Income)

Calculated by lenders to assess your ability to manage monthly payments and repay debts, DTI is the percentage of your monthly income that goes toward your monthly debt payments.

PMI (Private Mortgage Insurance)

For homebuyers making down payments that are less than 20 percent of the home purchase price, PMI is a required insurance that protects lenders from losses if borrowers are unable to pay their mortgage. PMI is typically incorporated into monthly mortgage payments.

P&I (Principal and Interest)

This is the portion of your monthly mortgage payment that goes toward paying off the money you borrowed to buy your home. For most homeowners, P&I make up the majority of your monthly mortgage payment — but not all of it.

PITI (Principal, Interest, Taxes and Insurance)

Together, principal, interest, taxes and insurance make up your total monthly mortgage payment. Calculating your total monthly payment is essential for giving you a more accurate picture of the cost of homeownership than P&I alone.

UPB (Unpaid Principal Balance)

The amount of principal still owed on a loan is referred to as UPB. On a typical monthly mortgage payment, a portion of your payment is applied to the interest and a portion is applied to the principal. The following month’s interest is based on your UPB. To check how much of your payment is going towards your principal, take a look at your amortization schedule.

HOA (Homeowners Association)

Twenty percent of America’s homeowners live within a community governed by an HOA. Before buying in such a community, get a handle on how much its HOA fees are, what they cover, and how often payments are due. Typically paid monthly, quarterly, or annually, HOA fees may cover services such as trash removal, lawn care, pest control and maintenance for common areas.

For more homebuying educational tools and resources, visit myhome.freddiemac.com.

It’s easy to feel adrift in a sea of unfamiliar technical acronyms. But, studying your vocabulary now can mean greater confidence when it’s time to make one of the most important purchases of your life.

Source: 10 Acronyms Homebuyers Need to Know

10 Best Places to Retire in 2020

 

Warm weather and low taxes continue to have a big pull on where retirees are choosing to settle down.

Warm weather and low taxes continue to have a big pull on where retirees choose to settle down in their golden years. Those pulls are prompting many older Americans to continue to relocate to popular retiree havens in the Carolinas and Florida.

U.S. News & World Report recently identified the best places to retire using criteria including housing affordability, taxes, health care, and happiness surveys. They analyzed data from 125 of the nation’s largest metro areas.

“Deciding where to retire is an important part of your life plan,” Emily Brandon, a senior editor for retirement at U.S. News, said in a statement. “When considering potential retirement spots, you should look for an affordable cost of living, proximity to health care services, and a strong economy, especially if you plan to work part-time.”

Some popular retiree spots in Florida continued to top U.S. News’ rankings but also other places like Lancaster, Pa., and Asheville, N.C., made it into the top five this year.

Here are the 10 best destinations for retirees according to U.S. News & World Report’s 2020 rankings:

1. Fort Myers, Fla.

Median home price: $219,200

2. Sarasota, Fla.

Median home price: $237,260

3. Lancaster, Pa.

Median home price: $196,025

4. Asheville, N.C.

Median home price: $248,500

5. Port St. Lucie, Fla.

Median home price: $211,083

6. Jacksonville,Fla.

Median home price: $174,658

7. Winston-Salem, N.C.

Median home price: $145,725

8. Nashville, Tenn.

Median home price: $248,883

9. Grand Rapids, Mich.

Median home price: $181,533

10. Dallas-Fort Worth

Median home price: $248,375

Source: 10 Best Places to Retire in 2020

Mermaid & Pirate Festival, Oktoberfest, Bahamian Festival top things to do this weekend

 

Here are the best events in Stuart, Jensen Beach, Port Salerno, Port St. Lucie, Fort Pierce and Vero Beach.

It’s officially fall on the Treasure Coast.

Oktoberfest celebrations and fall festivals top events and things to do this weekend in Martin, St. Lucie and Indian River counties.

Here’s What To Do in 772.

Martin County

Fall Fest at Langford Park is 6-9 p.m. Friday at 2369 N.E. Dixie Highway, Jensen Beach. Activities include a children’s fun zone, a pumpkin patch, arts and crafts, face painting, a pumpkin-decorating station, an educational and interactive animal exhibit, children’s games, costume contests, giveaways, music and food trucks. Admission is free. For more information, go to martin.fl.us/prdevents.

Everyone Plays: Neighbor Night at Golden Gate is 6-8 p.m. Friday at the Golden Gate Center for Enrichment, 3225 S.E. Dixie Highway, Stuart. The night includes interactive music and dance, a photo booth, bingo with prizes, indoor and outdoor games, a creative crafting station, rock painting, free popcorn and a taco truck. For more information, go to facebook.com/hohmartin.

The Port Salerno Mermaid & Pirate Festival is Saturday at The Twisted Tuna.Buy Photo

The Port Salerno Mermaid & Pirate Festival is Saturday at The Twisted Tuna. (Photo: MOLLY BARTELS/SPECIAL TO TCPALM)

The Port Salerno Mermaid & Pirate Festival is noon to 9 p.m. Saturday at The Twisted Tuna, 4290 S.E. Salerno Road. The festival features a real pirate ship, a treasure hunt, pirate weapon demonstrations, a costume contest, a pirate school, a living history pirate encampment, interactive games and activities, live music, food for sale, photo opportunities with pirates and mermaids, and art, craft and nautical-themed vendors. Admission is free. Tickets for the Pirate’s Ball from 7-10 p.m. Friday upstairs at The Twisted Tuna are $40 in advance and $50 at the door. For more information, call 561-792-9260 or go to mermaidandpiratefestival.com.

Dirty River Jam 4 is noon to 11 p.m. Saturday behind Tako Tiki, 3340 N.E. Pineapple Ave., Jensen Beach. The event includes live music from 13 different bands and musicians, a children’s zone, a dunk tank, raffles, auctions and children’s entertainment. Admission is free. Proceeds benefit Friends of the Everglades. For more information, go to facebook.com/dirtyriverjam.

The 22nd annual New Monrovia Bahamian Festival is 10 a.m. to 7 p.m. Saturday at New Monrovia Park, 4455 S.E. Murray St., Stuart. A parade with the Junkanoo Band starts at 11 a.m. The festival features traditional island food, a children’s zone and entertainment. Carnival attire is encouraged. Donations are being accepted for Bahamas relief. For more information, go to newmonroviacdc.com.

The 22nd annual New Monrovia Bahamian Festival is Saturday at New Monrovia Park in Stuart.Buy Photo

The 22nd annual New Monrovia Bahamian Festival is Saturday at New Monrovia Park in Stuart. (Photo: ERIC HASERT/TCPALM)

The Great Escape Fall Festival is 10 a.m. to 5 p.m. Saturday at Guy Davis Park, 821 S.E. 10th St., Stuart. The festival includes a children’s play zone, concessions, arts and crafts, bounce houses, DJ music, a ninja play zone, a circus center, snow cones, cotton candy and popcorn. A $10 play bracelet includes unlimited access to the bounce houses, ninja zone and slides. A $6 play bracelet includes unlimited access to junior bounce houses, slides and the preschool play zone. For more information, call 772-618-5186.

Elvis impersonator Darrell Dunhill performs at 7 p.m. Saturday at the Kane Center, 900 S.E. Salerno Road, Stuart. His show features authentic costumes, original song arrangements and signature dance moves. Tickets are $15-$20. To get tickets, call 772-223-7800 or go to kanecenter.org.

Crafting with Carina: Marine Life Edition is 2-4 p.m. Sunday at The House of Brews, 3311 N.W. Main Ave., Jensen Beach. Make crafts and chat with a biologist about marine life and how to protect the environment. While kids enjoy sparkling juices and treats, adults can try SweetWater Brewing Company’s special release #KickPlastic pilsner. For more information, go to facebook.com/jensenbeachthob.

St. Lucie County

The Firefighter Combat Challenge U.S. Nationals is 5-9 p.m. Friday, 10 a.m. to 9 p.m. Saturday and 11 a.m. to 7 p.m. Sunday at the Manatee Observation and Education Center, 480 N. Indian River Drive, Fort Pierce. Firefighters from more than 45 cities across the nation converge downtown to compete. Wearing full gear, they race head-to-head, individual and tandem competitions, simulating the physical demands of firefighting by performing five tasks: climbing a five-story tower, hoisting, chopping, dragging hoses and rescuing victims. Plus, the event includes food trucks, vendors and a miniature course for kids. Admission is free. For more information, call 772-871-5458 or go to firefighterchallenge.com. Plus, Family Day with free admission to the Manatee Center is noon to 4 p.m. Saturday. It includes children’s crafts, hands-on activities, live animal exhibits, games and hourly fish feedings. For more information, go to facebook.com/manateecenter.

The Firefighter Combat Challenge U.S. Nationals is this weekend at the Manatee Observation and Education Center in Fort Pierce.Buy Photo

The Firefighter Combat Challenge U.S. Nationals is this weekend at the Manatee Observation and Education Center in Fort Pierce. (Photo: MOLLY BARTELS/SPECIAL TO TCPALM)

Port St. Lucie’s Oktoberfest is 5-10 p.m. Friday and 2-10 p.m. Saturday at the Port St. Lucie Civic Center, 9221 S.E. Civic Center Place. Under the big tent, enjoy a brat-eating contest, a stein-holding competition, children’s activities, bounce houses, live entertainment and German beer and food for sale. Admission is free. For more information, call 772-878-2277 or go to pslparks.com/oktoberfest.

Hop Life Brewing’s Oktoberfest Two-Anniversary Party is noon to 11 p.m. Saturday at 679 N.W. Enterprise Drive, Unit 101, Port St. Lucie. It features special beer releases, custom beer steins, live music, food trucks with German food and beer competitions. For more information, go to facebook.com/hoplifebrewingcompany.

Islamorada Beer Company’s Fifth Anniversary Oktoberfest is noon to 10 p.m. Saturday at 3200 Saint Lucie Blvd., Fort Pierce. It includes food trucks, charity raffles and live music. For more information, go to facebook.com/islamoradabeercompany.

Peace, Love & Patty for Patty McGee’s 75th Birthday Bash is 6-9 p.m. Saturday at Archie’s Seabreeze, 401 S. Ocean Drive, Fort Pierce. Wear 1960s costumes. For more information, call 772-460-3888 or go to facebook.com/archiesftpierce.

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The seventh annual Wild Roses Line Dance Workshop starts at 9:30 a.m. Saturday at River Walk Center, 600 N. Indian River Drive, Fort Pierce. Plus, socials start at 7:30 p.m. Friday and Saturday at River Walk. The cost to register is $60. Proceeds benefit the Wild Roses Foundation. For more information, go to wildrosesfoundation.com.

Laurie’s Stories: Line dancing isn’t just about country music anymore

The Treasure Coast Swine 4-H Club’s Barbecue and Bingo Fundraiser is 5-9 p.m. Saturday at the St. Lucie County Fairgrounds, 15601 Midway Road, west of Fort Pierce. It includes a dinner of homemade barbecue pulled pork, coleslaw, baked beans and macaroni and cheese, as well as raffles, drawings and bingo. The cost is a donation of $15 for ages 13 and older and $10 for ages 12 and younger. Enter the fairgrounds from Peacock Road. For more information, go to facebook.com/treasurecoastswine.

The Cruise-in to Fall Classic Car & Truck Roundup is noon to 4 p.m. Sunday at Summer Crush Vineyard & Winery, 4200 Johnston Road, north of Fort Pierce. It also includes an art show, live music and a food truck. Admission is free to spectators. Registration is $20. Proceeds benefit St. Lucie Habitat for Humanity. For more information, call 772-460-0500 or go to summercrushwine.com.

Homegrown: Summer Crush Vineyard & Winery in Fort Pierce turns native muscadine grapes into wine

Indian River County

Oktoberfest Nights is 6-9:30 p.m. Friday and Saturday at Riverside Theatre, 3250 Riverside Park Drive, Vero Beach. Enjoy German food, beer, drink specials and live authentic Oktoberfest music. Comedy zone showtimes are 7:30 p.m. and 9:30 p.m. For more information, go to riversidetheatre.com.

Laurie’s Stories: Laugh it up at adults-only comedy shows in Vero Beach, Fort Pierce

The 32nd annual Autumn in the Park Centennial Arts & Crafts Show is 9 a.m. to 4 p.m. Saturday and Sunday at Riverside Park, 3200 Riverside Park Drive, Vero Beach. The show includes more than 100 exhibits, food vendors, children’s activities and entertainment. For more information, call 772-978-4700.

The 32nd annual Autumn in the Park Centennial Arts & Crafts Show is Saturday and Sunday at Riverside Park in Vero Beach.Buy Photo

The 32nd annual Autumn in the Park Centennial Arts & Crafts Show is Saturday and Sunday at Riverside Park in Vero Beach. (Photo: JEREMIAH WILSON/TCPALM)

The first Volkstoberfest car show is noon to 6 p.m. Saturday at Walking Tree Brewery, 3209 Dodger Road, Vero Beach. It also includes food trucks, vendors, giveaways, raffles and live music at 7 p.m. For more information, go to facebook.com/walkingtreebrewery.

Space Coast Symphony Jazz Orchestra’s Big Band Fever concert is 7-9 p.m. Sunday at the Vero Beach High School Performing Arts Center, 1707 16th St. It features music from the 1920s, ‘30s and ‘40s. Tickets are $25 in advance and $30 at the door. Ages 18 and younger or those with student IDs get in free. For more information, call 855-252-7276 or go to spacecoastsymphony.org.

H.A.L.O. No-Kill Rescue’s Howls for Fall Festival is 11 a.m. to 2 p.m. Sunday at the Indian River Shores Community Center, 6001 N. State Road A1A, north of Vero Beach. Enjoy music, food, hay rides, apple bobbing, costume contests, vendors and a haunted house. For more information, go to facebook.com/halo.rescue.

The sixth annual Paddle in Pink fundraiser is this weekend at Costa d’Este Beach Resort & Spa, 3244 Ocean Drive, Vero Beach. On Friday, the party on the pool deck is 6-9 p.m. and includes live music, drink specials, food and a live auction. On Saturday, yoga on the beach is 8:30-9:30 a.m., the mimosas and muffins beach lounge is 9:30-10:30 a.m. and the main event with pop-up shops, food and drinks is 10:30 a.m. to 4 p.m. For more information, go to paddleinpink.org.

The Pink Passion Event is 6-9 p.m. Sunday at Waldo’s Bar & Grill at the Driftwood, 3150 Ocean Drive, Vero Beach. The event features music, drinks and an artisan box giveaway. Proceeds benefit the American Cancer Society. For more information, go to facebook.com/msabcirc.

Laurie K. Blandford is TCPalm’s entertainment reporter and columnist dedicated to finding the best things to do on the Treasure Coast. Read her weekly column, Laurie’s Stories, on TCPalm.com. Follow her on Twitter at @TCPalmLaurie or Facebook at faceboook.com/TCPalmLaurie.

Source: Mermaid & Pirate Festival, Oktoberfest, Bahamian Festival top things to do this weekend

The Best 3-Day Long Weekend Getaways in the U.S.

 

Looking for long weekend trip ideas? We’ve got plenty, from Seattle to Savannah. Here, the highlights from 13 of our favorite quick trips in the U.S.

Asheville, North Carolina

For a low-key romantic weekend away, the art-centric mountain town of Asheville won’t do you wrong. Perhaps the crowning jewel of the trendy yet traditional city, the Biltmore Estate simply isn’t to be missed. The 250-room Gilded Age chateau sits on 8,000 acres of highly-curated gardens and meadow (all designed by the very guy behind NYC’s Central Park, Frederick Law Olmsted) with the Blue Ridge Mountains serving as a super casual backdrop. Peeling yourself away from the largest mansion in the U.S., you’ll get your night’s sleep at The Windsor Boutique Hotel, a homey 14-suite rustic stay right in the heart of downtown. End your mini-retreat with brunch at Cúrate, a buzzy tapas-inspired restaurant with crowd pleasers like honey-drizzled fried eggplant and traditional tortilla española.

Seattle, Washington

Kimpton Hotels know how to turn on the quirk, and the historic Palladian is no exception. Guest rooms at the Belltown spot work screenprinted Mr. T and David Bowie pillows, vintage maps, and smart brass fixtures into an otherwise classic mix. Two blocks away, you’ll find the famous Pike Place Market, your go-to place for quick bites, while luxe sit-down meals are best at The Butcher’s Table, which delivers with a raw bar, inventive sides, and every cut of steak known to man. To walk it all off, head for exhibits at Chihuly Garden and Glass, an IG goldmine dripping in galleries of vibrant glass sculptures—the center of which is a suspended red, yellow, and amber floral piece that lives in the Glasshouse.

Miami Beach, Florida

Bed down at the ultra-quirky Freehand Miami for a stay packed with vintage travel ephemera, mod furniture (making use of a ROYGBIV palette), and a social courtyard with a pool, bocce, yoga, and art classes. Dinner is to be had at Byblos, a design-savvy, family-style Eastern Mediterranean joint that serves up duck kibbeh, Persian fried chicken, and fattouche, in an impossibly bright (and chic) dining room. Art is all around in the Magic City, and to see the best of it, you don’t need a ticket or a proper tour—simply take yourself on a self-guided walk around Ocean Drive’s Art Deco and Art Nouveau buildings, making sure to stop for photos at favorites like Hotel Breakwater South Beach, the Leslie Hotel, the Essex House Hotel, and The Tides South Beach.

Source: The Best 3-Day Long Weekend Getaways in the U.S. | Jetsetter

What Every Homebuyer Should Know Before Getting a Home Loan

 

There is a range of mortgage choices available, so you have the ability to select the right one for you. That’s a good thing, but it can be a lot of information to take in, so be sure to educate yourself.

After you’ve figured out how much you’d like to borrow from a lender, your next step in getting a home loan is deciding what kind of loan to choose. There is a range of mortgage choices available, so you have the ability to select the right one for you. That’s a good thing, but it can be a lot of information to take in, so be sure to educate yourself.

Fixed Rate vs. Adjustable Rate

Fixed-rate mortgages have the same interest rate and monthly payment for the entire life of the loan, whether that’s five, 15, 30 years or more. This type of loan is a good option when rates are low and you plan to own the home for a long period of time. Adjustable-rate mortgages, also known as ARMs, have interest rates that can change at set intervals during the life of your loan. This type of loan is a good option when rates are high and you only plan to own the home for a short time.

Conventional vs. Government-Backed Loan

With conventional loans, a private lender assumes the risk of losing money if you default on your mortgage. A government-backed loan is insured, either completely or partially, by the U.S. government. Federal Housing Administration and Veteran Affairs loans are well-known types of government-backed loans.

Federal Housing Administration (FHA) Loan

FHA loans are available to anyone who meets the FHA lending guidelines and maximum loan amounts. Because the FHA insures the loan and lowers the risk for the lender, this mortgage type is more likely to offer competitive interest rates, less strict credit requirements and low down payments. An FHA loan is a good option for first-time homebuyers, although buyers should be aware of the monthly insurance payments you’ll likely have to pay for choosing this over a conventional loan.

Veteran Affairs (VA) Loan

A VA loan is available to eligible veterans, spouses and other beneficiaries. Similar to FHA loans, the risk is lower, so this mortgage type offers a competitive interest rate often without requiring a down payment or private mortgage insurance.

Conforming vs. Non-Conforming Mortgages

Conforming mortgages meet specific standards set by Fannie Mae and Freddie Mac, the government-sponsored institutions that buy loans from banks. Non-conforming loans do not meet those standards, which means they are less likely to sell on the secondary mortgage market — and lenders offset the risk by charging a higher interest rate.

Mortgage Fees

Once you have a short list of mortgage options to choose from, ask your lender if there are pre-payment fees if you pay off the loan early, and how much the lender will charge. Fees can vary from lender to lender and are sometimes negotiable — all the more reason to shop around!

Source: What Every Homebuyer Should Know Before Getting a Home Loan: What Type of Mortgage is Right for Me? – Redfin Blog

Refinance Checklist!

Refinance to lower your interest rate, reduce your mortgage years, cash out to consolidate debt, renovate your house, call us with any mortgage related question 772-340-4003

To read more about refinances click HERE

Those credit scores you see may not be what lenders use

Consumers are often surprised to discover that the number they’ve been monitoring isn’t the one that their would-be lender uses as part of its loan decision.

Several months ago, pharmacy technician Curtis Webb thought his credit score was high enough to help him snag good terms on a mortgage.

“It was close to 730. I thought it would help me get a good interest rate,” said Webb, 27, a Utah resident. “Then the lender came back with my actual score. I was shocked.”

The underwriter had checked his “classic” FICO score, which was more than 40 points lower than the score that he’d been monitoring online. The lower score meant a higher interest rate, making the loan a more expensive prospect.

That scenario is common, experts say. Consumers can retrieve a credit score online that may not be the one that’s used when they actually apply for a loan. And while the discrepancy might not always be significant — or could be in your favor — some industry watchers say the differences are confusing at best and misleading at worst.

“Consumers don’t even know what score they’re looking at, or if it’s the one used by lenders,” said Al Bingham, a credit expert and author of “The Road to 850.”

“In most cases, it’s not,” he said.

The credit-scoring world is a complex one, despite many consumers thinking their score is a number that is the same — or at least very similar — no matter where it’s presented.

“It’s unrealistic to expect that a number, whether from a website or credit bureau or anywhere else, will be the same number that some future lender is going to use,” said John Ulzheimer, a credit expert and president of The Ulzheimer Group in Atlanta. “If it is identical, chalk it up to luck.”

FICO scores are considered the most widely used numbers in lending decisions across consumer loans and lines of credit. The company says its scores are used in 90% of lending decisions, based on data audited by a third party.

VantageScore, meanwhile, says that 2,800 organizations (including 2,500 financial institutions) used close to 10.5 billion of its scores from July 2017 through June 2018, based on a study by global consulting firm Oliver Wyman. Most of that usage, though, came from credit card companies managing existing credit card accounts and prescreening applicants.

Webb, the Utah resident, had been monitoring his score on personal finance website Credit Karma, which provides scores from the VantageScore model. That’s a joint venture among the nation’s three biggest credit-reporting firms: Experian, Equifax and TransUnion.

The VantageScore was created in 2006 as a competitor to FICO, which has been around since 1989. Both brands use similar data to compute your number — including things like outstanding debt, payment history and other financial tidbits that help predict whether you’ll repay what you borrow. The most familiar versions of both VantageScore and FICO result in a score that falls on a scale of 300 to 850.

However, the specific algorithms used to arrive at your numbers are different. And both brands have multiple versions — upgraded editions, often — which also contribute to variations in the scores that you see. Even the credit-reporting companies can provide same-named scores that differ from one to the next due to differences in the information reported to them or the timing of it.

Of course, regardless of the score lenders choose to use, they also typically weigh additional items including income, length of employment, stable housing or other aspects of your financial life that don’t show up in your credit report or get reflected in your score.

Yet as many consumers know, the higher your score, the better terms you can get on loans and credit cards, including the interest rate — which can save a lot of money in interest over the life of a loan.

For example, on a $160,000 mortgage, paying 4% over 30 years incurs $115,280 in interest. Just a half percentage point higher, 4.5%, would yield $132,128 in interest over the same time — $16,848 more.

Source: Those credit scores you see may not be what lenders use

Treasure Coast Events: 49 - Enjoy!

 

Treasure Coast area events calendar.

Things to do in the area including concerts, entertainment and local attractions.

For the full list click HERE

MMG Sponsoring Marketing Madness Today!

Thank you #Realtors and association’s staff for making another great #MarketingMadness possible.

Technology Shouldn’t Replace a Loan Officer

 

The mortgage and financial services industries are in the midst of a dramatic technological revolution, thanks to automation, machine learning processes, and the emergence of the digital mortgage. Applications that were done entirely on paper just a few years ago are now able to be completed on a smartphone by a consumer sitting on a park bench, on a lunch break, or at home relaxing on the couch.

1. Loan officers are problem-solvers

As any loan officer or originator can attest, much of the day-to-day job consists of solving problems, putting out fires and ensuring that customers are taking positive steps towards their destination, whether it be a simple 30-year fixed-rate for a 780 FICO borrower with 20 percent down, or a jumbo non-QM loan for a self-employed borrower with a recent bankruptcy. The problem-solving isn’t always mathematical. Often, it’s a communication issue between agents or an employer not responding about a verification. That is the sort of task that a competent loan officer will always be able to do better than the best AI or automated system. Those are “people problems,” and they need people-focused solutions. Additionally, many problems require not just solving, but an originator committed to advocating for their borrowers. That means being willing to go above and beyond to assist borrowers–calling in support from other departments, finding creative solutions, and picking up the phone to talk to underwriters, compliance, appraisal, title, escrow, real estate agents and more. In my many years as a loan officer, I’ve found that this kind of commitment and “hustle” to get the job done is what separates successful, long-term professionals from those who are just out to make a quick buck.

A loan officer who has a personal connection or takes the time to communicate with a customer should understand their specific needs, so they can precisely tailor a mortgage. As helpful as many online/app-based mortgage applications are, they will never provide all the detail you need, particularly the hidden or “bubble” questions. For example, a borrower reaches out to lender because their mortgage is past due, thanks to an unexpected expense, such as funeral costs. There are so many things that a borrower needs to communicate to a lender–not just what they want, but why they are doing something, including any timelines or relocation concerns to keep in mind. Today’s borrowers are more complicated than ever before, thanks to rising self-employment and the “gig economy.”

One of the big benefits of having a loan officer is the expert counsel that they provide to their customers. While the aforementioned borrower with spotless credit and a large downpayment may not necessarily need much in the way of counsel, many customers need the advice and care that isn’t available through an algorithm. No automated system can provide the kind of nuanced assistance that the job requires. Ask yourself what “digital solution” helps with these common scenarios:

►Loan officer suggests that a client increase his/her creditworthiness by paying off multiple credit cards and putting less money down

►Walking the customer through the pros/cons of having a family member co-sign on a loan

►Client has a very low score–instead of a simple rejection, the savvy loan officer responds with “You currently have a 460 FICO score, but let’s talk once a month until you get your credit score up and eventually, maybe two years down the road, you can be a customer.”

2. Still in demand: The human touch

The hype surrounding new mortgage technology may make it easy to think that borrowers are demanding to turn the mortgage process into something as simple and straightforward as ordering a pair of socks on Amazon.com, but don’t be fooled. While borrowers are certainly demanding that their lenders utilize and embrace new technology, they also want and need the human touch that only a live loan officer can provide. They know that purchasing a home isn’t like ordering a $12 pizza–it’s likely the largest and most significant financial transaction of their lives. Even the much-vaunted digital application isn’t a panacea. Mortgage tech giant Ellie Mae found some surprising facts about consumers and online applications in their annual Borrower Insights Survey: “The survey showed that when borrowers fill out online applications, it is common for them to abandon the process or take multiple sessions to complete it. About one-half that have used an online mortgage application finished in one sitting. About one quarter of those that have used an online mortgage application started the application online but did not finish it online.” To me, that reveals that many borrowers want more communication, more input, to learn about options, get advice–not something that can be done with a chatbot.

In fact, Ellie Mae’s 2018 survey showed that Millennials were not only the most likely to use technology in their mortgage journey, but they were the most likely to say that more face-to-face interaction and increased communication would have improved the mortgage experience. Remember, most borrowers are unfamiliar with the mortgage process altogether, and many homebuyers are making their first purchase. Good loan officers find that there’s an emotional connection when you speak to a borrower, as you work to understand their hopes, dreams and needs, and how you can help them achieve their goals.

3. Tech tools are just that–tools

Instead of feeling anxious or viewing new technology as a threat, loan officers should see it as an opportunity. Remember that these innovations and technologies are simply tools. Ignored or not embraced, they are wasted, but wielded properly by a smart loan officer, they create powerful new opportunities that can grow your business. Making that personal connection with a borrower is key to not only a successful transaction, but making the borrower a customer for life. In addition to face-to-face interaction, utilizing social media platforms and automated marketing systems is a great way for loan officers to extend their reach more efficiently. In particular, I’ve found that simply running ads doesn’t get the job done with today’s consumer, who is bombarded with 4,000-10,000 ads a day. However, posting a short video with a helpful tip or quick insight on the latest housing data or rate change is an effective attention-getter, and provides valuable content to the prospect and gives me instant credibility. Video and social media is also a great way to stay in front of your existing customers, building on that personal connection and trust that leads to the next loan or referral.

While predicting the future, particularly the future of technology, is an uncertain business, I am confident that as long as mortgage borrowers have problems to solve and see the value in human interaction and connection, loan officers will always have a place in the industry. Not competing with technology, but employing technology to help their customers and reach their own professional goals.

Source: Top Three Reasons Why Technology Shouldn’t Replace a Loan Officer

PSL Events: October 2019

The Civic Center calendar shows events happening at the Civic Center.

To see the full list, click HERE