Rates
As usual, these have been all over the board. Ranging today from 4.75% - 5.125% on a 30yr fixed (again this is based on credit score and equity, etc.). People I surveyed (bankers, brokers, my wife, and my dog) think rates will drop a little more.

Trivia
Last week’s trivia answer was Kurt Russell. Congratulations to those of you who got it right. This week’s trivia centers around an actress who turns 44 today. She found success in the 80s starring in 1982’s sitcom Square Pegs and 1984 Footloose. She is divorcing her famous actor husband. People that see her may ask, “Why the long face?” Tell me who she is and win a Starbucks $5.00 gift certificate.

Rates
Have been all over the place the last week. Currently, a 30 year fixed is around 5.25% (although rates can change up and down based on credit scores and equity in the home).

Did’ja Know?
Fortunately (at least for me) your SAT scores don’t follow you around for life. However, your credit scores do. Here are some important things to know regarding scores:

1. They range from 350 (you’re probably dead) to 850. Anything over 740 is considered excellent.

2. Your payment history and amount owed make up 65% of your score. To keep your scores high make sure to pay your bills on time and try to keep credit card balances low. If you have one card with a 10k limit and you are using all 10k, it’s better for your score to transfer half of that balance to another card. When you have capped any limit on any line of credit, it lowers your scores.

3. My mother-in-law is coming to visit in a week and she drives me insane! If she once – even once – tells me what I’m doing wrong with my kids I am going to kick her out of the house. This has nothing to do with credit scores, but I feel better now. Thanks for letting me vent.

4. Do not close any unused credit cards! This looks like you are not being granted credit. Its okay to close the little department store cards, but you should have 3-4 MasterCard/Visa cards open.

Trivia
Congratulations to all of you last week who guessed it was Sharon Stone’s birthday. Let’s try one more in the acting category. Email me who you think this is, and if you are correct I will give you a mystery prize valued at $5.00. Who am I: I turned 58 today and I’ve been acting my whole life. I played Jungle Boy on an episode of Gilligan’s Island. I auditioned for the role of Hans Solo in Star Wars but lost out to Harrison Ford. I played minor league baseball in the 70s before an injury forced me to concentrate on acting. I provided the voice of Elvis Presley in Forrest Gump. My longtime girlfriend is a famous actress and so is my daughter.

Rates
Add 3 to my high school GPA and you will have the 30 year fixed rate: 5.25% (rates can go higher or lower depending on credit score and equity in the home).

Are rates different for condos?
Yep, they can be. Condos led the league in foreclosures last year so the folks at Fannie Mae and Freddie Mac decided they would reward/ punish us based on the equity in a condo. With 25% or more equity you will get the best interest rate. With less than 25% equity there is a .25% add-on to the interest rate.

Did’ja know
Let’s all be thankful we are not realtors in Detroit where the average home sells for $18,000.00. That’s right – 18k. I’m ashamed to say I’ve done loans for parking spots here in Chicago for double that price.

Trivia
last week I asked you which of the following about me was true – A. I have been hit by lightning. B. I was born with three kidneys. C. I danced with Tori Spelling. Most of you guessed one of the worst actresses on the planet – Ms. Spelling. But the correct answer was B. Three kidneys. The extra one is not hooked up and worthless, but I still might throw it on Ebay just for the hell of it. Today’s trivia involves an actress who has turned some heads in the past. Guess who she is and win a mystery prize from me: “I am 51 years old today. At one point my mother-in-law was Cloris Leachman. I made a movie in 1992 with a very revealing scene that the director promised would not be that revealing. It took me 14 years before I agreed to star in the sequel.”

Everything you wanted to know about FHA loans but were too scared to ask…

3-letter abbreviations to stay away from: DOA, DUI, DWI, MIA, KKK, HIV, XXX.

3-letter abbreviations to gravitate towards: FHA.
This is short for the Federal Housing Administration. It is not the end-all answer for people that can’t get a conventional loan, but it is an alternative to try. What are the pros and cons of FHA? There are two pros that stand out from the rest. First, FHA is not as anal about the credit scores like our friends at Fannie Mae and Freddie ‘Big’ Mac. We’ve routinely seen borrowers with scores in the 500s get approved for FHA loans. Second, you only need 3 ½ percent down payment to buy a property, where a conventional loan takes at least 5% (and lately on condos 10%). There are two negatives with FHA loans. First, the borrower will pay MIP (Mortgage Insurance Premium – this is like PMI – only the premium gets paid every month and stays with the loan for the life of the loan (whereas PMI drops off after you’ve obtained 20% equity in the home). Second, in addition to closing costs the borrower will typically pay a point up front.

FHA Approvals
We will touch on these at the next meeting tomorrow, but on a single family home they are easy to get. On condos we need to get what is called a ‘spot approval’ if the entire building is not FHA approved. A spot approval means the individual unit is approved but not the whole building. If you are working with a developer let us know and we can help you get the entire building FHA approved which will make your developer really happy.

Interest rates
FHA loans typically carry the same rate or a touch higher when compared to conventional loans. And where are rates these days? A 30 year fixed is at 5.125% - slightly better than last week. Keep in mind, rates can be better or worse depending on credit score and equity in the home.

Trivia
Last week we wanted to know the original candy that director Steven Spielberg wanted to use instead of Reese’s Pieces (but couldn’t secure the rights). The answer – which most of you got – was M & Ms. This week’s trivia involves me. Of the following 3 statements, two of them are false and one is true. Tell me the true statement and you will win a PERL Mortgage lucky pen. 1. While miniature golfing in 1989, I was hit by lightning. 2. I was born with three kidneys. 3. At a bar in 1996, Tori Spelling told me I was the best dancer she had ever danced with (then gave me a fake phone number as she left the bar).

Good luck!

Good News 1
Looking to buy a home? The government will give you a tax credit of $8,000.00. (there are restrictions though). There were rumors that this was going to be as high as $15,000.00. Regardless, this is a good thing to pass on to potential buyers.

Good News 2
My Rogaine is working. I found some new hairs this morning which is kinda cool.

Interest Rates
Rates remain in the low 5’s. Remember – rates depend on credit score, amount of equity in the home, and what type of property it is.

Trivia
Last week’s trivia question revolved around the Oscars: Which Best Picture film holds the record for swear words – 329 of them. The answer is Platoon. (incidentally, my grandfather at the age of 98 swore more than 400 times during the Bears Super Bowl loss to the Colts a few years ago (and half the time called the Bears the ‘Bulls’) I believe that to be a record. . . Congratulations to the select few that answered this right and won a Perl Mortgage pen valued at over $6.00. This week’s trivia: In the movie E.T, the young boy lures E.T out with some Reese’s Pieces. Director Steven Spielberg originally wanted another candy but could not get the rights. What candy was it?