PARAMOUNT MORTGAGE - LENDER'S BLOG

Click here to watch the interview with Paramount Mortgage President John Frank

KSDK- With interest rates falling, this may be a good time to refinance your home mortgage.

John Frank, president, Paramount Mortgage offers some tips for homeowners seeking to refinance.

1. Know your current situation: It is helpful for consumers to be aware of their credit histories-and take care of any outstanding derogatory items. It is also good for people to examine on a monthly basis what he or she is comfortable putting towards housing expense without sacrificing other important necessities or lifestyle choices. Being aware of this will allow you to go to the next step successfully.

2. Work with professionals and build a team (realtors, mortgage bankers): Step 1 is an important exercise because professionals will work with your requirements (formulated in Step 1) and correlate that information to a proper sales price, loan amount and monthly payment. You may be surprised that you qualify for MORE on paper than what you though about previously. Insist on meeting face to face with these individuals- and treat it is as a job interview- they are working for you.

3. Request information in writing: All cost and fees incurred in the buying, selling and refinance process should be clearly stated in writing. Ask questions if you don't understand. As for mortgages, insist on a formal LOCK IN letter to outline the deal- BEFORE YOU GET TO THE CLOSING and have an unpleasant surprise.

4. Know what you are paying for: Review the fees listed on the written material. If it does not have a direct benefit to you or provide a truly necessary service- Question it!

5. Be familiar with red flags: These include prepayment penalties, floating interest rates, a delayed payment schedule, or any last minute change. These are not always necessarily bad, but need to be explored.

Watch the complete interview at KSDK.com

We have been getting lots of questions regarding the changes in the mortgage industry. Take a look below to see if we can help you answer yours.

1) What advice do you have for consumers looking to purchase a home or refinance their mortgage?

Know your current situation. It is helpful for consumers to be aware of their credit histories - and take care of any outstanding derogatory items.It is also good for people to examine on a monthly basis what he or she is comfortable putting towards housing expense without sacrificing other important necessities or lifestyle choices. Being aware of this will allow you to go to the next step successfully.

Work with professionals and build a team (realtors, builders, mortgage bankers) This is an important exercise because professionals will work with your requirements and correlate that information to a proper sales price, loan amount and monthly payment. You may be surprised that you qualify for MORE on paper than what you though about previously. Insist on meeting face to face with these individuals - and treat is as a job interview - they are working for you. Get to know the staff at Paramount Mortgage >

2) How will the Fed’s actions affect interest rates?

Any rate tied to prime rate, such as credit cards or home equity lines of credit will see an immediate change. However, the mortgage rates are not directly correlated with the fed’s changes. Mortgage rates are tied to the bond market, most notably the 10 year treasury. View today's Rate Lock Advisory >

3) Is this a good time to refinance?

Yes, but there are some considerations. First of all, how long do you plan on remaining in your current home? There are fees incurred by refinancing, so if you only plan on being in your home a short time, you may not recoup the fees. To ensure you can make that decision properly, request information in writing - All costs and fees incurred in the buying, selling and refinance process should be clearly stated in writing. Ask questions if you don’t understand. As for mortgages, insist on a formal LOCK IN letter to outline the deal - BEFORE YOU GET TO THE CLOSING and have an unpleasant surprise. Know what you are paying for - review the fees listed on the written material. If it does not have a direct benefit to you or provide a truly necessary service - Question it! Learn more about refinancing options >

4) What if I am currently delinquent on my mortgage payment?

The most important thing you must do is contact the company where you make your payment and let them know what is happening. Most companies are willing to work out payment arrangements and that could help you save your home. In addition, if you are 62 or older and own your own home, a reverse mortgage is a great way to prevent foreclosure or rectify delinquencies. Learn more about reverse mortgages >

5.) Are there any upcoming changes that will help consumers?

Yes, there is pending legislation to modernize FHA which may of great assistance to anyone looking to buy a home or refinance. Also Fannie Mae is also considering raising their loan limits as well. Since these are “insured” programs, they are viable providers of mortgage credit. Visit the FHA website for details >

Do you have more questions? Please call Paramount Mortgage at (314) 372-4300 - we are here to help you.

 by Chris Kissell, Sheyna Steiner, Laura Bruce, and Leslie McFadden - bankrate.com

When the Federal Reserve meets and changes rates we all have questions: What does it mean to me? Will my mortgage rate go up or down? Is this a good time to refinance? We've looked at five categories -- mortgages, home equity loans, auto loans, credit cards and certificates of deposit -- to determine if the Fed's moves made you a winner or a loser. Here's a look at mortgages:

Winner: Borrowers with good credit

The surprise decision by the Federal Open Market Committee to cut the federal funds target by 75 basis points likely reflects growing fears that the U.S. economy is weakening. Ironically, such worries may be good for people hoping to see lower mortgage rates.

Read the full story: Link

ByJonathan Diamond, Special to TheStreet.com

Click here to read the full story

Public Opinion: Each time you open a newspaper or turn on a TV, you'll hear how unhappy, glum and dissatisfied Americans are. Don't believe it. The U.S. is, to borrow a phrase, the happiest place on Earth.

A long-forgotten 1960s movie title pretty much sums up how Americans feel about their lives: "What's So Bad About Feeling Good?" According to a new Gallup Poll, for most people that's not just a rhetorical question.

"Most Americans say they are generally happy, with a slim majority saying they are 'very happy,'" according to the Gallup Poll released on the final day of 2007. "More than 8 in 10 Americans say they are satisfied with their personal lives at this time, including a solid majority who say they are 'very satisfied.'"

Another extensive survey conducted in 2007 by the Pew Research Center found that 65% of Americans termed themselves "satisfied" with their lives. That compares with the four economic powerhouses of Britain, France, Germany and Italy, which averaged about 53%.

This difference isn't something new. It's been around for a long time. It's a part of what foreign-affairs mavens call "American exceptionalism." The question is, why are Americans so darned happy?

Read the full article here

He bought a deteriorating house on Indianapolis' north side, had it torn down and a new one built. The 73-year-old retired from his government job in 2004, thinking he was financially secure. His income included his pension, personal savings, Social Security and rent from the other side of his two-family house.

Then he got his property tax bill that had nearly tripled. His bill in 2005 was about $2,900 and was $4,600 last year. This year's bill -- $7,568.

"I almost had a heart attack," said Gunyon. "My reaction was one of pure anger."

His problem is not unique. The amount paid in local and state property taxes in the country increased 50 percent from 2000 to 2006, according to Census data cited by some U.S. Congress members when discussing the topic. During that time, inflation rose 17 percent and median household income dropped 2 percent.

Click here to read the full story