(302) 703-0727

(302) 703-0727

Pass Your Assets to Loved Ones…Not Uncle Sam

John Thomas August 4, 2007

If you donate have an estate plan in place, don’t worry¦the IRS has one for you. But you may not like it, so it’s always a good idea to get your finances in order and avoid incurring tax penalties and hefty estate taxes. Knowing the value of your estate and becoming familiar with several exemptions and tax benefits can help you hand your assets over to your loved ones¦without handing a portion of your hard earned assets over to Uncle Sam.

Some good news the new Federal estate tax exclusion increased in 2006 to $2 million per person. In the past ten years, that amount has increased over 230 percent, as the figure is up from $600,000 in 1996. Count on this tax exclusion figure to remain in effect until 2009, then the amount is scheduled to increase one more time to $3,500,000 per person. After 2010, it will supposedly be repealed altogether. Keep Reading...

Negative Amortization – What is it?

John Thomas August 3, 2007

Negative Amortization
Amortization is the repayment of a loan by making systematic payments over a set time period which are applied to the combined balance of the principal and interest for that loan amount. Therefore, negative amortization occurs when the payment is less than the required interest that has accrued on the loan for that month.

Summary:
Few lenders offer negative amortization loans today. Those that do have annual payment caps and lifetime interest rate caps for steady control on required payments over time.

Ideally Suited for:
Ideally suited for a client living in an appreciating real estate market who needs a consistent, predictable payment for cash flow purposes, yet has the potential of income rising in the future.

If you would like to apply for a Mortgage Loan, you can APPLY ONLINE HERE, you can call John Thomas at 302-703-0727.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713

Delaware Mortgage Loans with American Brokers Conduit won’t fund!

John Thomas August 3, 2007

American Brokers Conduit sent out the word on Thursday that they were officially closed for good. ABC sent out e-mails to its brokers and posted a message on its website which shut down.  American Brokers Conduit lost its credit lines so therefore lost its ability to fund loans. The company wasn’t in trouble but when it lost its ability to fund loans and couldn’t find an alternative source of money it had to close its doors.  Several lenders have tried to take the loans that could not fund with ABC.

This leaves some Delaware Homeowners and future homeowners with approval for loans that won’t fund. If you have a Delaware Mortgage that was with ABC then your broker should be trying to take your loan to First Bank of Arizona or Plaza Home Mortgage both will accept ABC approved loans and close them within 24 hours.

If you have a Delaware Mortgage loan that is considered an Alt-A loan then you may be in some trouble if it hasn’t already closed, then you may find the rate has skyrocketed (Chase & Suntrust have jump Alt-A rates) or is gone. (Wells Fargo stopped funding Alt-A loans altogether.) National City Mortgage is no longer doing any stated loans period.

If you would like to apply for a Mortgage Loan, you can APPLY ONLINE HERE, you can call John Thomas at 302-703-0727.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713

Authorized User Will Change September 2007 for Credit Scoring System

John Thomas August 2, 2007

September 2007 the credit scoring system is going to make a change that will affect 165 million people all at once. Who are these people? Answer – authorized users!

Fair Isaac is updating their software to eliminate the “authorized user” loophole that allowed people to piggy-back with someone who had good credit and increase their credit score 100 points in less than 30 days.

Fair Isaac estimates that there are 165 million “authorized users” and it will have a serious impact on credit scores when authorized users are virtually eliminated from the credit scoring model.  Ms. Orman’s trick of adding a child to a credit card as an authorized user when they are young so that they have good credit when they are 18 is not going to work anymore!

The authorized user trick was to have someone with a seasoned credit card that is carrying zero or very low balance add that person to their credit card as an authorized user. The company started selling these cards to people with bad credit to bump their credit score in less than thirty days to get a mortgage or car loan. Once the loan was obtained the person was removed as an authorized user. The company makes money, the person with the credit card is paid, and the person who was added now gets the credit they didn’t qualify for originally.

If you would like to apply for a Mortgage Loan, you can APPLY ONLINE HERE, you can call John Thomas at 302-703-0727.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713

Financial News for July 30th, 2007

John Thomas August 1, 2007

The economy grew at a 3.4% pace in the second quarter, a big improvement over the 0.6% showing in the first three months of 2007 and better than the 3.2% growth rate economists were expecting, the Commerce Department reported July 27. Also in the second quarter, core prices — excluding food and energy — rose at a rate of just 1.4%, sharply down from a 2.4% pace in the first quarter and the smallest increase in four years.

Meanwhile, consumer sentiment registered 90.4 in July, a shade below the median forecast of 91.2, but well ahead of June’s reading of 85.3, a 10-month low. The gain was tied to consumers’ favorable outlook about the economy, particularly regarding future employment and income prospects, the Reuters/University of Michigan Survey of Consumers said July 27.

Orders for durable goods — manufactured to last three years or more — increased by 1.4% in June, the best performance in three months, the Commerce Department reported July 26. Soaring demand for commercial airplanes helped fuel the rise.

Sales of new single-family homes dropped by 6.6% last month, a decline more than triple what analysts had expected, the Commerce Department reported July 26. New home sales are 22.3% below the level of a year ago.

Sales of existing homes fell 3.8%, a decline about twice what had been anticipated. Yet the median price of an existing home edged up to $230,100, 0.3% more than a year ago, the National Association of Realtors said July 25.

This week look for updates on personal income on July 31 and the unemployment rate on August 3.

If you would like to apply for a Mortgage Loan, you can APPLY ONLINE HERE, you can call John Thomas at 302-703-0727.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713

More Mortgagage Lenders Close Doors

John Thomas August 1, 2007

More Lenders stop funding new loans and look to be closing their doors.  Fieldstone Mortgage stopped funding new loans on July 25th, 2007.  Any loans that haven’t already funded by July 25th were dead and would not fund.

American Brokers Conduit stopped funding new loans on July 31st because they could no longer obtain credit to fund loans.  ABC hasn’t announced they are going under but the outlook is not good.

ResMae also stopped funding new loans.  Entrust Mortgage is no longer funding new loans.

If you would like to apply for a Mortgage Loan, you can APPLY ONLINE HERE, you can call John Thomas at 302-703-0727.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713

Interest Only – What is it?

John Thomas July 28, 2007 Tags: ,

Interest Only
Interest is what a borrower pays a lender over and above the original amount of the loan, as compensation for the use of the money over a specified period of time. An interest only loan requires a payment that pays the interest that has accrued on the loan for the current month, but with no principal reduction required at all for some specified amount of time, outlined in the Note signed at closing. Permanent mortgage loans normally only allow interest-only payments for lower cash flow for a specific number of years. The most common is the 5-year interest only product, yet there are many other types available in the marketplace.

Summary:
Interest only products offer a wonderful way to lower monthly cash flow for a consumer, but do carry some risk and must be evaluated to make sure they fit for the particular borrower.

Ideally Suited for:
Ideally suited for the more experienced borrower who can use the lower cash flow to maximize financial leverage by pursuing other financial opportunities.

If you would like to apply for a Delaware Home Loan, you can APPLY ONLINE HERE, you can call John R. Thomas at 302-703-0727.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713

First Time Home Buyer Seminar – August 18th from 10:00AM till 12:00PM

John Thomas July 28, 2007 Tags: , ,

There will be a First Time Home Buyer Seminar on Saturday, August 18th from 10:00 AM to 12:00 PM at the Primary Residential Mortgage’s office in New Castle, Delaware.  Come learn what it takes to buy a home in Delaware. First time home buyer programs will be covered.  The program will also cover how to improve your credit and how to afford a mortgage payment that might be more than your current rental payment.  All registered participates will receive a Credit Scoring Audio CD.  Sign up for credit check at the seminar. Everybody has the opportunity to receive their complete credit report and get pre-approved to buy a home at the seminar.  You will also have the opportunity to schedule a one-on-one appointment with a mortgage professional and credit counselor who can answer questions for your specific situation.  Please call 302-703-0727 to and ask for John Thomas to register for this seminar or Register Online by clicking below:

If you would like to apply for a Delaware Home Loan, you can APPLY ONLINE HERE, you can call John R. Thomas at 302-703-0727.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713