Honorable Mentions:

• Traci Bingham is a Cambridge native. She is best-known for playing the role of Jordan Tate on the television series Baywatch.
• Bridget Moynahan grew up in Longmeadow, MA. Known for her supporting roles in films such as Coyote Ugly (2000), Ex-girlfriend to New England Patriots’ Quarterback, Tom Brady.
• Maura Tierney was born and raised in the Hyde Park neighborhood of Boston. Her father, Joseph Tierney, served as Boston’s City Councilman for 15 years. She played on ER , as Abby Lockhart.
• Marcia Anne Cross is best known for her television roles as Bree Hodge on Desperate Housewives and Dr. Kimberly Shaw on Melrose Place . Ms. Cross was born in Marlborough, MA.
• Jennifer Coolidge was born in Boston, grew up in Norwell, MA and attended Emerson College. She is best known for playing "Stifler’s mom," the consummate “MILF,” in the film American Pie.
• Lisa Edelstein was born in Boston, but grew up in New York City with a club scene persona, Lisa E. She currently stars as Dr. Lisa Cuddy on the television drama, House M.D.

Home Buying

What makes a house a good buy? At the end of this article, I have a list of houses that I have graded in terms of the sorts of features that make these houses good financial investments, as well as comfortable homes.

How will these houses remain good investments over the years? The value of real estate all across the country has been dropping. We see this in the news every day. So many jobs have left this country that people are having problems keeping up with their mortgage payments, and we are now seeing stories of people trying to get out from under mortgage payments that were based on the value of their house before the market went into flux.

Nevertheless, we are still buying and selling homes. So, what do we look for when we buy a house? One wit summed it up very clearly when he said, “There are three things you have to look at when you buy a house, and they are; location, location, and location.” That statement is so true! What is the town like, and what is the median income of the people who live there? What is the neighborhood like? Are the people who live there essentially secure in their jobs? If you have, or are planning to have children, will this neighborhood be comfortable for them?
If the world were ideal, you would never even look inside a house you were thinking of buying until you had answered these questions. Only then would you begin to assess how the rooms are laid out, and how much space there is, how many bedrooms and bathrooms there are, and how well the house is built.

Newton, Massachusetts, where I live and work, is a town about twenty minutes outside of Boston. The median income was $110,885 per household in 2007. The homes and the yards around them are generally well taken care of—people care about how they live and the neighborhoods they live in, and they have spent money to maintain these things. Whether you are in Newton or Kalamazoo, these are the sorts of things to assess when you are planning to buy a home.

Here are five homes that I evaluated here in Newton. The first one is at 316 River Street, selling for $509,900. The price on it has gone down by $20 thousand, so I give it four out of five points. It is a mid-price house, but the fact that it had been valued higher means that it is still a good value for your dollar. It has four bedrooms, good for a family with children. It may be possible to use one of those bedrooms as an office, and with more people working from their homes, this is a consideration. However, with all those bedrooms, it only has one bath, so I give it two points. This house was built in 1902. Many people appreciate older homes. These houses can be charming, and they are often very well built. However, you must be careful to have the plumbing and the wiring checked to make sure they meet code, before you sign on the dotted line. Plus, you must also take into consideration that when an older house needs to be repaired, those repairs can be expensive. Contact: David Walsh, RE/MAX First Realty 617-803-6434 dwalsh2000@comcast.net.

The second house is at 17 Parmenter Terrace, and it is selling for $569 thousand. Its price was reduced by $20 thousand. It has four bedrooms and three bathrooms—an excellent ratio. It offers 2,310 sq-ft of living space, and was built in 1940. It should have many years of excellent life in it. It has been on the market for 157 days, so I gave that a score of two. Though, part of the reason it is still on the market is that the buyer would need a high down payment. Contact: Janet Edsall RE/MAX First Realty, Phone: 617-244-4499; jedsall@bostonwesthomes.com

House number three, at 35 Cherry Street has two bedrooms and two baths and is selling for $399 thousand. It also has a room that was specifically built to be an office, and was built in 1950. It is a good, solid house for a professional family. Contact: Newenglandmoves.com
617-969-2447, Debra.Weiss@NEMoves.com

947 Boylston Street, here in Newton is selling for $569,950. It has six bedrooms and two baths, and 2,216 sq-ft of living space and was built in 1900. This home is close to the major highways, making it easier for people who must commute to work. Contact: Stephen Cucinotta, century21.com, (617) 926-5280

And house number five, 1124 Boylston Street was built in 2005. It is a handsome four bedroom house with three baths and 2,200 sq-ft of living space. It is selling for $579 thousand. I would consider this to be an excellent buy for the money, though you would need to pay a large balance in order to meet the seller’s demand. Zivthan Dubrovsky, Your Choice Properties in North Andover, mailto:zivthan@gmail.com

Hot Ticket

The buzz was on. People got in, or in the middle of getting in. You heard the news headlines on television, radio, the internet, on facebook, blogs, and twitter. This was historic, never seen before in our time. The experience was a must for all. Refinancing your mortgage to a rate in the 4s was your gold medal.

To those that had the luck in getting their refinance closed, congratulations! For those that are still waiting, you are that much further ahead than those that were shopping for the absolute bottom rate. If rates recover, your first in line.

The shear volume in refinance applications went through roof, lenders were slammed so quickly that they could do little to keep pace. The confusion of volume caused spooked underwriters to demand long turnaround times and iron clad proof to dispell any ambiguities of the applicants income, assets, properties, etc. Applicants and originators were often found seeking common sense.

“My home is worth 5 times my mortgage, what risk do I present?”

“I’ve never missed a mortgage payment, why is my credit score a problem?”

“I know my home is lower in value, but lowering my payments should help me stay in my home”

Funny, my lender account reps come into my office now, asking me about my thoughts on how we can get some of my loan in process to close. I can only shake my head, “a little common sense will go a long way”.

Interview

Written by Eliot May 26th, 2009 at 12:07 PM CDT 1 comment

Today we put together a list of questions that we frequently receive regarding mortgages, refinances, credit requirements and other related inquiries that pertain to the home mortgage industry. Today, we’re lucky to have Jeff Chin, owner of a boutique brokerage, Independent Mortgage, to answer your questions.

What is your background, your mortgage experience, and your current position?

I’m a recovering engineer turned Mortgage Advisor. I started originating loans in 2002, quickly found a liking to it as a profession and with my business partner, we founded Independent Mortgage, LLC in 2004. As a principal, I still originate residential and commercial mortgages. In my spare time, I hold credit management workshops for people to help them understand how scores are formulated and how to improve on them.

2. There is a lot of talk of loan modifications, new programs, new loan limits, and overall change in the mortgage environment. What do you see as the biggest difference in the mortgage environment in the past few years?

The days of liberal lending has definitely left us. Today the climate is one of tremendous suspicion. Lending guidelines are consistently tightened, where a borrower’s profile is under tremendous scrutiny. A borrower’s income, assets, and credit score are checked numerous times. Property values, in a similar fashion, are reviewed in multiple passes to assure that ambiguous issues are not gleaned over. The common sense factor has really disappeared. In our office, we can only shake our head in frustration and try to help our borrowers understand.

3. What do you recommend for borrowers looking to take advantage of these low rates?

The climate remains incredibly favorable for borrowers. Although we (Mortgage Originators) are very busy, looking into a refinance is well worth that 5 or 10 minutes to initiate the process. All things considered for mortgage refinancing currently, a borrower should check his/her credit score to see if it sufficient to get qualify. Currently a 620 credit score is the bare minimum to “talk turkey”. With so many programs, it would be to a borrower’s advantage to select a good mortgage professional to work with. Program guidelines are rapidly changing, so a borrower should “stick with it” until refinancing will not become beneficial.

4. I’m looking to buy a home and I’ve heard about several new programs that are out there. What experience do you have with them, and where should I start?

Today, there’s a lot excitement with the $8,000 tax credit that can be used as a downpayment. I would advise a homebuyer to seek out a knowledgeable Realtor and Mortgage Advisor in tandem. A borrower should know what loan amount they are qualified for, but, just as important, the type of property that are within their qualifications. Unfortunately, Condominiums are on the “highly suspicious” list, so there are lots of prohibitive lending issues in their purchase. Multi-families are also assessed with risk adjustments.

5. My lender has changed several times, and I’m not sure who I should speak to about a loan refinance. What are my options?

You can try to continuously contact the servicer or contact a mortgage broker. Both options are valid and sound, but a broker’s responsibility to place a borrower with the best program that multiple lenders have to offer.

6. What advice do you have for someone that has fallen behind on their payments? What’s the

best course of action for them?
Falling behind does not mean they are shut out of getting help. The best option is to contact their servicer to explore their options. If the circumstances are that their income isn’t adequate to continue with their program, then they should have a solid hardship case. Explore the support groups that are available for mortgage distress. Otherwise, a good Mortgage Advisor should be able to offer some guidance.

7. How important is credit score in qualifying for a loan?

It is monumental… I am seeing the minimum score for programs continue to creep up.

8. What is the minimum credit score, or other requirements to get the best rates in today’s market? What’s the minimum score needed to qualify for a loan?

A score over 740 gives a borrower the most leverage, little or no adjustments on rate. Anything between 740 and 620 means that there will be considerations to rate. As of this writing, there are no mainstream programs for people with credit scores under 620. There are some FHA programs that exist for borrowers with scores as low as 580, but in practice, they require much stricter underwriting conditions as well as numerous letters of explanations. I have not been very successful in getting these loans approved, and from what my other collogues have told me, no one has. It is another case of the government promising false hope.
Hopefully you have found these question and answer session helpful for those looking to take advantage of these low rates to purchase or new home, or refinance to help lower and stabilize monthly costs. Keep the questions coming and we’ll continue to post answers to popular questions.

Thoughts

• The Camry – best fit for a small family. Much like the Conventional loan for borrowers with equity in their home (more than 20%), solid credit scores and adequate income to support their mortgage.
• The Hummer – excessive road hog. Jumbo loans that remain at minimum a full percent higher than a conventional rate.
• The Kia (pick a model) – FHA loans are the equivalent. Low to no cost to get in, but, ongoing maintenance costs may mount up one day.
• Strectch Limos – investor mortgages. These models are for the business investors, but are not priced like they used to be.
• The Edsel – Stated income mortgages that just don’t exist anymore.

Ideas

Programs like FHA and HARP (Home Affordable Refinance Program) are intended to help borrowers get into lower rates. But difficult guidelines for loan limits, subordinations, home values, credit, etc., force many good candidates to be treated like the Klingon’s staple diet of serpent worms, Gagh! No thanks, lenders say.