MortgageAmerica, inc. Huntsville Madison Financing the American Dream

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Buying or refinancing a home can be one of your greatest investments. At MortgageAmerica, inc.® Huntsville/Madison, we understand that it can be stressful; our goal is to make the mortgage loan process as easy as possible by offering:

• 10 minute pre-qualifications

• 10 days to close

• 10 times the customer service

Currently approved to work with the following loan programs:

• FHA

• Conventional

• 203 (k)

• RD

• VA

• HomePath

• Bond (Step-Up)

Our licensed loan officers are available nights and weekends to fit into your busy schedule. With a friendly, professional staff and over 30 years experience in the mortgage industry we are able to evaluate which loan program best suits your lifestyle. We work to find the loan program that best fits your needs. Call, come by or apply online.

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ABOUT US

Huntsville Branch

Our History
Mary Lawrence
Diane Korb
Haley Underwood
Shelle Neupert
Claudia Rossi
David McGhee

Our History

Company DescriptionMortgageAmerica, inc. is a mortgage banking firm engaged in the origination and servicing of residential real estate loans. The company's exclusive business is single-family residential mortgages originated for sale into the secondary mortgage market.MortgageAmerica, inc. was founded in 1978 by John B. Johnson and his good friend and mentor, Dr. Harry L. Phillips. While the company was incorporated in the state of Delaware, its principal office is located at 1800 International Park Drive, Suite 100, Birmingham, AL 35243. The company maintains origination offices in Florida, Georgia, Tennessee, and throughout the state of Alabama.MissionMortgageAmerica, inc. through the origination, sale and servicing of residential mortgage loans, will provide superior service to customers and investors with significant achievement in terms of personal fulfillment and economic rewards for employees and share holders.VisionThe quality and skills of our people are our greatest strength. From our enormously experienced management team and our highly skilled and highly motivated Branch Managers and Loan Officers, to our conscientious and caring Associates, all of us at MortgageAmerica are dedicated to delivering outrageous customer service.The origination and servicing of mortgages have historically been laborious, complex, document intensive processes and, therefore, time consuming and frustrating to the customer. We are committed to streamlining and speeding these processes by always setting the customer's needs as our top priority. We endeavor to meet or exceed the expectations of our customers while preserving the integrity and interests of the company, our insurers, our investors and our shareholders. We relentlessly strive to shorten the time and reduce any inconvenience to our customers in all transactions.

Mary Lawrence mary_lawrence

Mary Lawrence

NMLS#180085 My previous work experience is in Real Estate and Accounting but I have been in the Mortgage industry for fifteen years; ten of them in a management position.I love working with people and the Mortgage industry allows me to do that every day. I am grateful to be able to have a career that lets me work with people from so many different walks of life. Being able to contribute to my customers’ home buying experience is a very rewarding part of my job.

Diane Korb diane_korb

Diane Korb

NMLS#203383 With 10 years of experience in the lending industry, I have become an expert in working with all types of borrowers and lending situations. My BBA in Finance and Economics combined with my experience as a former stock broker has given me an even deeper understanding of the financial markets - an added benefit when explaining the increasingly complex loan process to my clients. My experience includes clients as diverse as first time buyers needing credit repair, self-employed borrowers with few paper assets, VA and FHA loans, jumbo loans and more. My love of my job is obvious in my willingness to go the extra mile for my customers, whether I'm qualifying a buyer over the weekend or working with a Realtor to estimate closing costs late in the evening.

Haley Underwood

NMLS#192700I have been in the banking and finance industry for five years. Recently I, along with my husband and two dogs, built and financed a new home. Together we had the opportunity to experience what it is like to be in my clients’ shoes. It helped me understand how my customers feel during the entire process. It is a life experience I try to remember every time I help my customers. Photography, Country music and attending Church are my hobbies. Being a photographer allows me to capture and share the moments in my friends and family’s lives that we will cherish forever. My family is extremely important to me; they have influenced my life in every aspect. For example; my father used to write and sing original country music, a passion he passed on to me. When I am not working diligently for my customers, capturing precious moments or listening to music, I am spending time with my family and friends. I attend Mayfair Church of Christ; it is a home away from home with a loving, supportive extended family. I believe that with the compassion and support I receive from my friends and family, I am able to help ease the stress and frustrations of the financing process for my customers.

Shelle Neupert

NMLS#181069I specialize in VA being part of the Army family for 21 years. I am proud to work for a company which offers so many products. We strive to have all mortgage programs to meet our customers' needs. With 16 years of experience and being relocated to Huntsville with the last Army BRAC I feel like I can relate to all borrowers situations. Buying a home can be overwhelming I hope to put your transaction into perspective and guide you through the process.I love what I do and I want every customer whether you are a borrower, seller, realtor or attorney to feel like I have made our transaction informative and pleasant.

Claudia Rossi Claudia Rossi.jpg

Claudia Rossi

NMLS#213987 Claudia Rossi has been involved in the real estate and finance industries for more than 20 years. As a loan officer and former real estate agent, she has an intricate understanding of the process involved in finding and financing that next home. She works with first time buyers, repeat buyers and investors to help them structure a loan that best fits their needs. Claudia offers a free, no-obligation service to buyers who are thinking of purchasing or refinancing a home. Based on a brief 10-15 minute phone conversation, she can let you know how much financing you qualify for and what you can expect in a monthly payment. Whether you’re looking to purchase or refinance, Claudia can help you through every step of the process, with competitive interest rates, low closing costs and exceptional customer service.

David McGhee David McGhee.jpg

David McGhee

NMLS#65255My goal as your loan officer is to build a long lasting relationship. I feel success is achieved through a passion for the endeavor and a team effort. With my previous experience in advertising for the Huntsville Times, I have worked with many different people. Being exposed to so many personalities has allowed me to perfect my customer service skills. I will work hard for you to try to ease the stress of one of the biggest steps a person could take, homeownership.

FINANCING OPTIONS

Services

Conventional
FHA
VA
USDA
HomePath
Step Up
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Conventional

A conventional loan offers many options. With as little as 3% down payment it can be an easy way to buy a home. If you put less than 20% down you will have to pay private mortgage insurance, you can choose to pay a one-time payment, or monthly payments. Credit score and credit history set this apart from the government programs. This is often a loan for the more seasoned user of credit. In recent months some new program additions have been added for homes that meet certain Fannie Mae requirements for a foreclosure, this program is called HomePath and adds some very attractive features for the borrower.> Dowpayment as little as 3%> Term fixed rate from 10 years to 30 years.> Mortgage Insurance if loan amount is above 80% or sales price on a purchase or appraised value on a refiinanceOptions: > ARMs - adjustable rate mortgages at much lower rates> To waive the escrow account.> Cash out refinance up to 90% of value

FHA

FHA loans are the easiest type of loan program to qualify for. The program allows for low down payments and less than perfect credit. Unlike other low- or no-down payment programs, there are no income limitations.Major characteristics of the FHA loan include:• Only 3.5% down payment required - Down payment may be a gift from a relative• 30- year and 15-year terms• No pre-payment penalties• Only available for your primary residence. Not available for investment properties.• Can be used to purchase 1 –- 4 unit properties (provided you occupy one of the units).• Higher debt to income ratios allowed than for other loan programs• Sellers are allowed to contribute up to 6% of purchase price towards closing costs• Mortgage insurance required until loan to value drops below 80%, but must be paid for a minimum of 5 years. - Upfront premium of 1% of loan amount - Monthly premiums vary depending on loan term and loan to value ratio• Maximum loan limits vary by location, but are currently $271,050 for a single-family. The limits increase for 2, 3 and 4 unit properties.FHA makes periodic changes to their guidelines, so please contact your lender for current requirements.
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VA

VA loans are offered to Veterans, Active Duty Personnel, Reservist, National Guard, and some surviving spouses.There is NO DOWN PAYMENT. Keep your cash reserves for emergencies or other investments.100% financing means you can get more cash out of the equity.No Private Mortgage Insurance (PMI) will save you hundreds each month.The VA funding fee is waived if 10% disability is issued to the veteran.A VA loan is an assumable mortgageThere are no prepayment penalties for a VA mortgage loan.You may use your VA eligibility several times but only for a purchase of a primary residence.Alabama loan limits are up to $417,000 and the Alabama Jumbo loan limits are up to $1,000,000.

USDA

USDA mortgages stand alone as the only zero money down program available to borrowers that have not served in the military. Eligible borrowers will be hard pressed to find a loan program that offers more favorable terms, Yet, there are income limits for this program, and the property has to be located in an eligible area.Why Rural Housing?$0 Down FinancingNo Private Mortgage Insurance (PMI)Options to roll closing costs into the loan if the property appraises for more than the sales price.Competitive ratesSeller can contribute up to 6% of the closing cost and pre-paid itemsLow credit score requirementsCall us today to see if the area you desire is approved for Rural Housing. We can also make sure you fall into the income criteria. You will be satisfied with your decision to use the Rural Housing Program.

HomePath

A HomePath Mortgage allows a borrower to purchase a Fannie Mae owned property with a low down payment, flexible mortgage terms, no lender-requested appraisal and no mortgage insurance. Expanded seller contributions to closing costs are allowed.Here are some program specifics: 3% down payment for Owner Occupied propertiesNo Mortgage InsuranceNo Appraisal requiredFirstlook is a program for Owner Occupants660 minimum credit scoreCondo requirements are waivedThis is a great Fannie Mae program that could make your dream of becoming a homeowner a reality!Contact us today for more information.
homepath

Step Up

Alabama Housing Finance Authority Step Up• 0.500% down• 1st mortgage 96.5%• 2nd mortgage 3%• Income limit of $97,300• Loan limit of $271,050• Offered in Huntsville city and counties• Low rates/ 620 credit score

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203 (h) Disaster Relief

For HOMEOWNERS and RENTERS100% Financing is now available for local area residents whose homes were destroyed or damaged in the recent storms.• FHA guidelines• Up to 6% seller contributions• Quick closing (10 days for most loans)Borrowers are eligible if their homes:Are located in a Federally declared disaster area.ANDTheir homes were destroyed or damaged to an extent that reconstruction or replacement is necessary.

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AND THE WINNER IS...

Congratulations go out to Jennifer Bently. She is the latest winner in our Facebook Trivia Contest!

We would like to thank all of our contestants who entered a guess! We will continue to have trivia questions and prizes throughout the new year so check back periodically for your chance to win! Good luck, Merry Christmas and Happy New Year!

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Your Credit Score

What It Means to You as a Prospective Home BuyerIntroductionThe subject of credit scoring has become an increasingly hot topic, and for good reason. For many years, the general public only associated the concept of credit scoring with the need to purchase high-ticket items such as a new car or home. Today, credit scoring goes much further. Your credit score can affect your ability to get a good rate on commodities such as car insurance, cell phones, or even determine whether or not you get the job or promotion that you want and deserve. Indeed, the financial snapshot provided by the credit score has also become a gauge for many employers, especially those who seek to place employees in a position of management or financial responsibility. The History of Credit ScoringThe credit score system used today has evolved since the 1950s. It was originally designed to provide lenders with financial profiles on consumers who wished to borrow money. The lenders' biggest concern was whether or not an individual had the ability to repay a loan, and establish what percentage of risk might be involved. Congress passed the Fair Credit Reporting Act in 1971 to establish guidelines for fair practices in regard to the use of credit scoring. This law was designed to promote accuracy in reporting and protect the privacy of consumers. In light of the increased use of credit scoring and a growing fear of identity theft, recent legislation has been passed to further protect Americans and improve consumer awareness. The Fair and Accurate Credit Transactions Act of 2003 (sometimes referred to as The FACT ACT or FACTA) was signed by President George W. Bush on December 4, 2003. This amended the Fair Credit Reporting Act, enabling each American to obtain one free credit report every 12 months from each of the three main credit reporting agencies (CRAs); Equifax, Experian® and TransUnion®. Those bureaus have created a central website, www.annualcreditreport.com , to accommodate Americans who wish to obtain copies of their credit report. Note: If you decide to take advantage of this program, please keep in mind that annualcreditreport.com does not offer free credit scores with your reports. However, you can purchase your score at the same time that you order your free report for around $7.95 per bureau. To have a complete picture of where you stand with your credit, it is always recommended that you order your scores at the same time. Why Your Credit Score is So ImportantThe credit scoring model seeks to quantify the likelihood of a consumer to pay off debt without being more than 90 days late at any time in the future. Credit scores have many different ranges, however, the score that is used by 90% of lenders and creditors in this country is the FICO score, and the FICO score range is 300 to 850. Credit scores can range between a low score of 300 and a high score of 850. The higher the score, the better it is for the consumer, because a high credit score translates into a low interest rate. This can save literally thousands of dollars in financing fees over the life of the loan. Only one out of 1,300 people in the United States have a credit score above 800. These are people with a stellar credit rating that get the best interest rates. On the other hand, one out of every eight prospective home buyers is faced with the possibility that they may not qualify for the home loan they want because they have a score falling between 500 and 600. The Five Factors of Credit ScoringCredit scores are comprised of five factors. Points are awarded for each component, and a high score is most favorable. The factors are listed below in order of importance. PAYMENT HISTORY - 35% IMPACT Paying debt on time and in full has the greatest positive impact on your credit score. Late payments, judgments and charge-offs all have a negative impact. Delinquencies that have occurred in the last two years carry more weight than older items. OUTSTANDING CREDIT CARD BALANCES - 30% IMPACT This factor marks the ratio between the outstanding balance and available credit. Ideally, the consumer should make an effort to keep balances as close to zero as possible, and definitely below 30% of the available credit limit at least 2-3 months prior to trying to purchase a home. CREDIT HISTORY - 15% IMPACT This portion of the credit score indicates the length of time since a particular credit line was established. A seasoned borrower will always be stronger in this area. TYPE OF CREDIT - 10% IMPACT A mix of auto loans, credit cards and mortgages is more positive than a concentration of debt from credit cards only. You should always have 1-2 open major credit card accounts. INQUIRIES - 10% IMPACT This percentage of the credit score quantifies the number of inquiries made on a consumer’s credit within a twelve-month period. Each hard inquiry can cost from two to 25 points on a credit score, depending on the amount of points someone has left in this factor. Note that if you pull your credit report yourself, it will have no effect on your score. Remember that the credit score is a computerized calculation. Personal factors are not taken into consideration when a credit report is generated. It is merely a snapshot of today's credit profile for any given borrower, and it can fluctuate dramatically within the course of a week. How Does a Low Credit Score Affect My Interest Rate? Here’s a short list of how much low credit scores can cost when it comes to a mortgage*: You May Never Own A Home AT ALL, AGAIN, Or FOR YEARS Whether or not you.ve always had poor credit, or have just suffered from the recent mortgage crisis, this is a very real possibility for individuals. If you have low scores or problematic reports, lenders will either deny you flat out or penalize you with such exorbitant rates that the outcome ranges from completely undesirable to impossible. You Will Pay Higher Interest Rates It just makes sense that if you have higher credit scores, you will pay a lower interest rate on your mortgage loan and will have to put less down. Fair Isaac's consumer website at http://www.myfico.com offers a mortgage payment calculator that is updated regularly to show consumers how their FICO score can affect their interest rate. Per myfico.com, if your credit scores are under 620, consumers could pay $1420 more per month than someone with a 720 credit score for a 30-Year Fixed Rate Mortgage with a loan principal amount of $300,000. That’s an additional $17,040 per year, and approximately $511,151 over the life of the loan. Of course, interest rates are determined by many factors but the bottom line is that individuals with low credit scores will pay nearly three times more in interest than those with strong credit scores. Now You Will Be Subject To Loan Level Price Adjustment Fees (LLPA.s) when applying for a conventional mortgage. Consumers with a middle score of less than 719 will now be charged an LLPA fee which was implemented by Fannie Mae and Freddie Mac in March of 2008. See the following chart to see where your scores fall: FICO Score LLPA You Will Pay Below 620 2.750% 620-639 2.250% 640-659 1.500% 660-679 1.000% 680-719 0.250% For people experiencing the worst-case scenario, carrying a middle credit score of less than 620 could cost you an extra $8,250 upfront on a $300,000 loan amount. You Will Pay More For Private Mortgage Insurance (PMI) PMI is insurance that mortgage lenders require from most homebuyers who have less than a 20% down payment on their property. If your credit scores are marginal, your private mortgage insurance rate might be hundreds of dollars higher per month than you expect, and you usually don’t find this out until closing.

Credit Advice

Top 10 Credit Don'ts During the Loan ProcessMany are taking advantage of interest rates at historic lows, either by re-structuring debt with a refinance or purchasing a new home. However, the recent economic crisis has created even tougher guidelines and credit requirements and there are some things that consumers must be aware of when applying for a loan.Leading nationwide credit expert and President of Credit Resource Corporation, Linda Ferrari, developed the top 10 credit don'ts during the loan process, to help you get your arms around those things that can unknowingly wreak havoc on your loan transaction.1. Don't do anything that will cause a red flag to be raised by the scoring system!2. Don't apply for new credit of any kind!3. Don't pay off collections or charge offs!4. Don't max out or over charge on your credit card accounts!5. Don't consolidate your debt onto 1 or 2 credit cards!6. Don't close credit card accounts!7. Don't pay late!8. Don't allow any accounts to run past due-even one day!9. Don't dispute anything on your credit report!10. Don't lose contact with your mortgage and real estate professionals!

Sell Your Home

33 Ways to Sell Your Home FastHelpful Hints on Marketing and Selling Your HomeTip #1: Make a checklistMake a checklist to review any time a Realtor is bringing someone in to look at your home. Nothing fancy, just something to remind you to do all the little preparatory tricks on this list. Tip #2: First impressionsFirst impressions are always critical, and your driveway is one of the first things a buyer will see. Here's a quick tip that may be the solution for your cement driveway: Try Drano® or any high-powered liquid drain cleaner and sweep those oil stains away! Please use caution and read all manufacturers' warnings before you begin this task. Tip #3: Replace the garage doorThe garage door is one of the largest, most visible elements of a home. If you want to instantly enhance the overall look of your home's exterior and increase its value, replace your garage door before listing your house. After all, what's the use of a clean, organized garage if the door itself is warped, cracked, broken, or in need of painting? Tip #4: Paint front door and entry wayA fresh coat of paint will always help sell the house faster, but if you can't afford it, try this instead: paint the front door and, if needed, the entry area around the front door. If you don't have any matching paint around to use, see if there is a plate fixture or some other item you can remove. Then take a chip of that to the paint store to obtain a paint color that matches. Tip #5: Bake cookiesKeep a package of ready-made cookie dough on hand. Pop a few cookies in the oven just when a hot prospect is expected to arrive to view the home. The smell of freshly baked cookies will conjure up a lot of great memories! Try to trigger emotions that will work toward the sale of your house. Not to mention, they'll love the treat! Tip #6: That makes good scentsIf you don't have any cookies to pop in the oven to fill the house with a pleasant aroma, spray a little vanilla air freshener. This particular scent has a great impact. Potpourri around the house is a good idea, too. Remember, we're trying to appeal to as many senses as possible. Tip #7: Clean the carpetsWhen you are ready to list your home, it's always a good idea to have the carpets cleaned. A clean home will always sell faster, and you should accentuate the fact that you take care of your home. Leave a few pairs of shoes just inside the front door to imply that you are meticulous about the appearance of your house. Tip #8: Paint walls a neutral colorIf your home is decorated in dark or unusual colors, you're going to scare off a lot of potential buyers. It will be worth your while to paint your walls a neutral color, such as off-white. If you're not up to painting your entire house, at least paint the areas that make the biggest impression, such as the entry/foyer, living room, dining room, kitchen, and master bedroom. Tip #9: Clean or paint appliancesAppliances should be clean at all times. If your kitchen appliances have broken knobs, replace them. If your stove is green, your dishwasher is gold, and the trash compactor is black, have a professional come in and paint them one matching neutral color. This is much less expensive than buying all new appliances, and it will add dramatically to the "salability" of your kitchen. Tip #10: Polish fixturesPolish all fixtures, brass, chrome, glass, etc. with a high polish. This will add a sparkle to your home. Tip #11: Buy some new furnishingsNow is the best time to replace old, worn-out items with something new. Use your best judgment as to which items will actually make your current house look better to a prospective buyer. Tip #12: Head to the nurseryWhen your house is up for sale, it's time to retire all those half-dead plants (both in your yard and in your house) that you keep thinking will come back to life some day. They make a mess by dropping leaves, and to put it simply, having no plant is better than having a dead one. A quick solution is a trip to the nursery for a few fresh new plants. Tip #13: Buy potted flowersFlowers always brighten the appearance of a home, and they add a pleasant scent. If you do not want to buy fresh-cut flowers or spend money on something you will leave behind, a helpful alternative is to use clay or decorative pots as planters. After they have helped to sell your current home, you can use them to brighten up your new home as well. Tip #14: Let there be lightMost people keep curtains, blinds, and drapes closed for privacy, but when your house is for sale, be sure to open them all. Your house will look larger and brighter. Make sure that your windows are crystal clear. If your screens are worn out and full of holes, replace them. If you can't replace tattered screens, take them out entirely to give that clean appearance. Don't forget to wipe down dusty windowsills. If you have a window that faces an eyesore, you won't want to keep the drapes or blinds open. In that case, you would keep them closed, but still maintain a neat appearance. Tip #15: Brighten things upAdd a dramatic appearance to your house with new 100-watt light bulbs. A bright house looks larger, cleaner and more appealing to a potential buyer. This will create an open feeling, similar to the many new homes that are built today with lots of windows and skylights. Tip #16: Create more spaceRemember, you're not selling furniture; you're selling a house. Keeping this in mind, you may want to remove any large or ornate pieces of furniture. Unless your taste in furniture is the same as the potential buyer's, large pieces aren't going to help your house sell. Their absence, however, will make your house appear spacious and inviting. Tip #17: Empty the closetsTake as many of your personal items as possible out of your closet and store them in an out-of-the-way place. When your closets are cleaned up, they will look much larger to the potential home buyer. Abundant closet/storage space is a major selling point for most people. Apply this rule to any storage area. Tip #18: Don't leave a messInspect your house on the way out the door every day to see if there are any messes you have not had time to clean up. Kick clothes under the bed or get a couple of large, plastic tubs for emergencies. In short, don't leave your home a mess if there's any possibility that a potential buyer may see it. Just be careful not to hide your mess where it may be easily discovered, such as in a closet or cupboard! Tip #19: Organize the garageDo you ever find that you're having trouble pulling your car into the garage because you have so much stored in there? Clean it up by storing everything you can at a helpful friend's home or a rented storage unit. This way, your garage area will appear larger, and when it comes time for you to move, you will be more organized. Tip #20: Start packingIt will take some time to get all your knickknacks packed and ready to move. Why not do it now? Wrapping these little items in newspaper and storing them will make your move easier, and it will help your house show better. Remember, less is more. Tip #21: Have a garage saleHave that garage sale you've been meaning to have, but never got around to. This is one of the quickest, easiest, and most cost-effective ways to clear out those items that make your living space look cluttered. Check with your local newspaper to see if they offer a "Garage Sale Kit" including signs if you place a classified ad in this category. Tip #22: Clean the poolIf you have a pool, it should look like you're ready to throw a pool party, even if it's the dead of winter. You want to be sure to remind the buyer of how much fun a pool really is. This means a clean, uncovered pool with all of the furniture out and looking its best. Tip #23: Tame wild junglesAn empty yard sells better than an overgrown yard, probably because an empty yard looks larger. When trimming back your shrubbery and trees as you're getting ready to sell your house, don't be timid. Trees and shrubbery should not hide the house itself. Again, less is more. Tip #24: Water the lawnUse your sprinklers as much as possible to ensure everything in your yard is green. Turn on your sprinklers' manual start button whenever a Realtor is bringing a potential buyer to view the home. Newly-watered landscaping has a fresh, clean scent and a shimmer that makes it look much better than when it's dry. By leaving them on, you can also discourage any backyard exploring in the event you have unsightly areas there. Tip #25: Park down the streetExtra parking outside your house will give your property a spacious appearance. Park cars down the street so the Realtor has the most convenient parking. Also, be sure to remove children's toys, garbage cans, or any other unnecessary items from your front yard. All the buyer should see is a well-groomed property. Tip #26: Get out of the houseAlways leave your house while the Realtor is showing it. Remember, buying a house is an emotional experience. The buyer will tend to feel awkward inspecting the house while you are there. Tip #27: Take the dog for a walkIf you own a dog that may be intimidating to the potential buyer, take your furry friend for a walk whenever the home is being shown. Your dog's bark may be worse than its bite, but if its presence alone could potentially cause tension for the buyer, it takes away from the overall emotional experience of looking at the home. Also, make sure your home is free of pet hair and odors that may bother potential buyers. Ask your Realtor or a friend for an honest opinion. Tip #28: Create an experienceTry writing a letter explaining some of the features of your home. Talk about the schools, good neighbors, malls and shopping centers in the area, perhaps even a little history about the home. Write it in a very personal fashion, as if you were writing to a close friend. Try to create images in the potential buyer's mind of how great it is to live there. Finally, type this letter and make copies, but sign each one by hand. Put the letter in a nice stationery envelope and leave it out where anyone viewing the house couldn't miss it. Tip #29: Scope out new developmentsWhen you're selling your home, newer and similar homes in the area are big competition. Visit these homes to size up your competition and get ideas on how to beat them at their own game! Make sure your home has the same appeal as other homes by accenting similar attributes, while pointing out benefits your home may have that other homes do not. Tip #30: Price correctlyPrice may be a sensitive issue, but it is the one thing that will sell your house faster than anything else. If you price your house right in line with the market, it's not likely to sell quickly. That's because only the 5% or 10% of houses with the best prices are selling each month. If the price of your house isn't in that lower 10% relatively, then it isn't likely to sell as quickly. It's not what your house is worth, but what someone is willing to pay. Every shopper is bound and determined to get the best deal in town. Do you honestly feel your price makes your house one of the best deals in town? Now is a good time to compare your house with others on the market in the same area.Your Realtor will able to suggest a good listing price that will help your house sell quickly. Some sellers ignore this advice and ask a Realtor to price high to see what kind of offers they get. Be aware that this can cause your house to stay on the market longer with multiple price reductions, which actually detracts buyers. Tip #31: Offer to make payments or pay closing costs*Offering to make the buyer's first 3 mortgage payments or to pay their closing costs will be helpful to buyers who are tight in cash. This looks very attractive in your advertising. Many people like the idea of having a little grace period after moving into a new home or needing less cash at closing. Be sure you (or the buyer) are using an experienced lender, since seller concessions seem to confuse many less experienced lenders. Tip #32: Carry back a second mortgage*Carrying back a second mortgage on your house can help some people qualify who may not have been able to otherwise. (If you need all of the proceeds from the sale of your house, this method may not work for you.) You carry back a note for, let's say $40,000, but you offer the note to the buyer for only $35,000 providing the note will be paid off within a few months of ownership. The buyer will now need to get approval for an equity line or second mortgage, which can close in 30 days after the buyer takes possession of the home. Realize that even though the buyer agrees verbally to this agreement, they aren't obligated to retire your note any sooner than the note itself states. The motivation to retire your note quickly has to come from the discount incentive. Tip #33: Buy down the buyer's interest rate*Offer to pay up to 3 points (3% of the buyer's loan amount) in order to give the buyer a lower interest rate. This could dramatically lower the buyer's mortgage payment, making your house much more affordable and very attractive. A buyer could save several hundred dollars per month with this option, and it could even help buyers who normally couldn't afford your home to qualify for and purchase it. *These suggestions may not work for every seller and not all buyers will qualify for all programs. Call us if you have questions.

Mortgage Rates

Mortgage Rates on the Rise Again

Mortgage rates are on the rise after reaching record-low levels last yearPublished: Sunday, January 16, 2011, 6:45 AM By Marian Accardi, The Huntsville Times HUNTSVILLE, AL -- Those super-low mortgage rates from last year are history, with rates on fixed-rate products steadily rising since November.And rates are expected to keep climbing this year, though not taking any huge leaps."Provided the economy continues on a track to recovery - even in fits and starts - we'll see mortgage rates trend higher and move above the 5 1/2 percent mark in the second half of the year," said Greg McBride, senior financial analyst with Florida-based Bankrate.com."Rates have moved up, but they're still at extremely attractive levels," said McBride. "The higher rates are not going to be an impediment to a well-qualified buyer. "They may take away some buying power, but they're still attractive relative to historic norms."Fixed-rate 30-year mortgages increased from an historic low of 4.17 percent the week of Nov. 11 to 4.86 percent late last month, according to the weekly survey of government-supported lender Freddie Mac. Then last week, fixed mortgages dipped for the second time. The average rate on the 30-year mortgage dropped to 4.71 percent last week from 4.77 percent the previous week. And the average rate on the 15-year loan was down to 4.08 percent last week from 4.13 percent, Freddie Mac's survey shows. "As the economy improves, you should see rates increase," said Chris Shiner, vice president of mortgage operations at Worthington Federal Bank in Huntsville. Right now, rates are similar to the levels back around March 2008, the start of the refinancing boom, he said.They'll probably creep up a quarter- to a half-percent over the rest of the year, Shiner said. Yet, "rates are still near historic lows. They're still going to be great rates. If you're trying to purchase a home, you'll continue to be in a great position."Even homeowners can benefit from refinancing their mortgages, Shiner said, if they haven't refinanced in the last two to three years. McBride said borrowers can still find 30-year rates well below the 5 percent mark if they shop around. "On 15-year rates, you're seeing rates close to the 4 percent mark." Freddie Mac is also expecting interest rates on 30-year fixed-rate mortgages to reach 5.5 percent late this year. And the Mortgage Bankers Association, in its December financial commentary, predicted mortgage rates will reach 5.5 percent by the end of the year and "above the 6 percent mark" in 2012. Mortgage rates aren't expected to return to last year's historically low rates unless the economic recovery fizzles.

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