KCM Blog good stuff

"Welcome to the New KCM!" and more

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• Welcome to the New KCM!
• Mortgage Rates after the Bernanke Announcement
• ANNOUNCEMENT: New Website Coming Soon
• Coffee & Bagel or Financial Freedom? [INFOGRAPHIC]
• What to Consider When Buying a Second Home

Welcome to the New KCM! Posted: 24 Sep 2013 04:00 AM PDT Here it is! Over the past few months, our crew has been working diligently to put together a brand new website, bringing our blog and membership website together. We're so excited to show you the new look and feel of KCM. In addition to the new design, we've also included some exciting new features for our members: The All-New Dashboard With the new Dashboard, the most current information is all in one place. Upon logging in to the Member Area, you'll be taken right to your Dashboard. This way you can see a little bit of everything before diving into it further. KCM Support Center Got a question? With the new Support Center, you can find the answer to your question faster than ever. Browse through tutorials and walk-throughs or just see what other members are asking. And don't worry, if you can't find your question, just submit a ticket and we'll get back to you as soon as possible.   Updates from The KCM Crew We've included a new Updates section to inform our members of any breaking news that might come out or any other important information about your membership. This gives us another avenue to speak directly to our members so we can continue to keep you current on what matters most. So poke around the new website and let us know what you think by leaving a comment below. If you have any questions, concerns, or ideas, please feel free to let us know. Want to see what it would be like to be a KCM Member? Try it out absolutely FREE for 14 days by taking a free trial of the new KCM. P.S. - If you're reading this via email, be sure to check out the new site now by going to www.KeepingCurrentMatters.com.

Mortgage Rates after the Bernanke Announcement Posted: 23 Sep 2013 04:00 AM PDT Last week, Bernard Bernanke startled many by announcing that the Fed will not wind down their bond buying program right now. The program is part of an overall stimulus package geared at bringing back the national economy. The Fed’s purchase of these bonds over the last few years has driven mortgage rates to historic lows. The assumption that there would be a reduction in bond purchases has caused 30 year mortgage rates to spike upward over the last few months. Surprisingly, Bernanke revealed the Fed will continue bond purchasers at the current pace. What happened and what does it mean to mortgage interest rates? What would have happened if they reduced bond purchases? According to Bankrate.com: “The Fed could have caused rates to shoot up this week if it had announced the tapering of its bond-purchasing program.” Why did the Fed decide not to start winding down bond purchases? Moody’s Analytics reported that there were three reasons: 1.    Subpar economic data 2.    Tighter financial conditions 3.    Uncertainty surrounding fiscal policy What does this mean to a buyer applying for a mortgage? Those at Bankrate.com explain: “For now, borrowers have dodged another spike in rates. The Fed's announcement might even cause rates to drop in coming days, says Paul Edelstein, director of financial economics at IHS Global Insight. ‘Mortgage rates should fall back -- not massively, but to some extent,’ he says. That doesn't mean homebuyers and homeowners should wait for lower rates, mortgage professionals say. Eventually, once the Fed lets the mortgage market and the economy start walking on their own, rates will probably head back to the 5 percent or 6 percent range, says Scott Schang, manager for Broadview Mortgage Katella in Orange, Calif." When will the Fed begin winding down bond purchases? According to an article in the Wall Street Journal: “Federal Reserve policy makers decided this week that the economy isn't in the right place for them to start winding down their bond-buying program. By the time they meet in December, it might be. The decision to not start winding down the bond-buying program now was close… The economy only needs to get a little bit better over the next few months for the central bank to get its nerve back. That should be an easy bar for the economy to clear.” Bernanke himself has not ruled out that the Fed could still scale back the stimulus this year. He stated: "If the data confirms our basic outlook, then we could move later this year.” Bottom Line Ed Conarchy, a mortgage planner at Cherry Creek Mortgage in Gurnee, IL had a great quote in the Bankrate article: "Remember that rates go up like a rocket and fall like a feather." Still, Bankrate.com itself probably put it best: Grab the gift before it's gone!

ANNOUNCEMENT: New Website Coming Soon Posted: 21 Sep 2013 04:00 AM PDT On Monday, Sept 23rd, we will be launching our new website. We wanted to give you a heads up so you're not alarmed by the new look and feel of the KCM Blog. We'll also be merging our membership website with our blog. That way, every piece of content we provide is all in one place. We hope you'll like the nice and simple layout we've designed for you, making things easier than ever to find. Stay tuned!

Coffee & Bagel or Financial Freedom? [INFOGRAPHIC] Posted: 20 Sep 2013 04:00 AM PDT Today's InfoGraphic courtesy of our great friend Dave Savage from Mortgage Coach. Here is an EDGE VIDEO Dave created to help you see how to take this concept and tailor it for specific homebuyers.

What to Consider When Buying a Second Home Posted: 19 Sep 2013 04:00 AM PDT Today we are happy to have Mark Scheets, a writer for Total Mortgage Services, as our guest blogger. - The KCM Crew Sooner or later you may reach a point in your life where you are financially stable and plan to purchase a second home. For the most part, people who look to buy a second home are either looking at it as an investment or somewhere to vacation. It is important to become familiar with the process when looking for and making the decision to purchase a second home. Purchasing a second home is similar to the purchase of your first home, but there are also some important differences that you may not be aware of. Two of the most important things to consider when buying a second home are to know what you’re looking for and how much you can spend before beginning the process. When considering buying a second home, timing is a big aspect of the purchasing decision. If you are in the middle of your career or ready to retire, you need to ask yourself what is the point of buying a second home. Many homeowners will ask themselves “Do I want to use this home as a personal retreat or as a rental property?” Another question often asked is “Can I afford this?” You may have to wait 6 months or a year, but having a good understanding of the current market and knowing when you are planning on making the purchase, will get you what you want. Get Help One step that will benefit you when looking for a home, is hiring an agent. Most people find their agents through friends, family members or colleagues. The agent’s job and expertise is in helping guide you down the correct path and being there to answer whatever questions you may have. Do Your Research Your second home can be whatever you want it to be, but one thing to keep in mind is that the location and property need to be a good fit with your current lifestyle. A good idea for buying an investment property is to make sure that it is somewhat near your current home, in order to be close to it in case of an emergency. When considering a vacation home, especially one that is far away, it is a good idea to talk to the locals who live there to get their prospective on the area. This is important because you will not be at the house year round; and you need to see yourself enjoying living there. Whether you have planned to purchase a second home for years, or have finally started considering it, it is extremely important to make sure all of your finances are in order. It is a good idea to know exactly what is needed financially to get your plan into motion. When applying for a second mortgage, there will be stricter lending and mortgage requirements, especially if you will not be living in that home. Be Prepared Another aspect to take into consideration is your taxes, which will be based on the use of your second home. The IRS has declared “if you live in your home for more than 14 days, or more than 10% of the time you rent it out in a year, then it is considered your personal residence”. If these conditions are not met, your home will be considered a rental property and you must report all rental receipts as income. When the time comes to finally figuring out how to purchase your home, weighing your options are important. It’s good to know that buying an existing home is far cheaper than buying land and building. Many people with second homes have made financial mistakes with their home and are looking to sell quickly to cut their losses and move on. This fact could help a buyer if the house is similar to what they are looking for, as it can be had for a cheaper price. A mortgage on a second home will have a higher interest rate than one on a first home. It might be a good idea to consider a home equity line of credit (HELOC). A HELOC allows the buyer to tap into their existing home’s equity so that you can provide a bigger down payment. Protect Yourself If the time ever comes where you decide you would like a second home, make sure that you do your research. Being aware of what you are getting into is always smart before diving in. There are various differences between the ownership of a primary home compared to a secondary home and knowing these differences will help out immensely. However you decide to use it, those who pursue the ownership of a second home will have to take extra precautions in protecting their investment.

 

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