economy
Should I Lock or Float My Mortgage Interest Rate?
July 6, 2009 by Jim Bigelow · Leave a Comment
When shopping for a mortgage, what is the best time to float your rate and when should you lock it in? The answer to this question depends on two things:
1. Your objective – if you are buying a home, would your chances to qualify for the loan be jeopardized if interest rates rose? If you are refinancing, will the current interest rate save you a significant sum of money?
2. Your tolerance for risk – floating an interest rate can benefit a client in two ways. First, if rates were to fall, the client could lock a lower rate. Second, if a client chooses to wait until just before the closing date to lock the rate, often times the loan officer can give the client a small break on costs because the mortgage company doesn’t have to take on the risk of managing the lock. So, if you’re willing to risk the possibility of interest rates rising, it may pay off via a lower rate or lower costs. If you don’t like the idea of taking that risk – lock the rate.
What is a Rate Lock?
A rate lock is a pledge between lender and client that guarantees the loan at a specified interest rate. The lender and client have a window of time, usually 15, 30,45, or 60 days, to close the loan. The shorter the lock period, the better things look from a financial point of view. Locking a rate means the lender now has taken on the risk.
However, don’t confuse a rate quote with a rate lock. Just because a lender gives you a rate quote doesn’t mean you’ve locked in at that rate. This is a common mistake many prospective borrowers make. Make sure you are crystal clear as to whether you’re locked or not and, if you are locked, what the rate and terms are. Get it in writing.
What Does It Mean to Float?
Floating means you are willing to take the risk that interest rates will either not go up or that they will fall. If rates have been dropping, then you might want to take a chance that rates will be lower by the time you close your loan than they are today.
Here’s some practical wisdom from Bob Walters, chief economist, “Far too many people, who couldn’t have cared less about interest rates before, become obsessed with rates while they are in process with a mortgage company. The reality is that, while we’d all love to time the market perfectly, it’s extraordinarily difficult to do. If the loan, at the quoted rate, makes sense – lock it in. Leave the rate prognostication to the bond traders.”
economy
New Safety Net for Unemployed Homeowners
May 7, 2009 by Jim Bigelow · Leave a Comment
New Safety Net for Unemployed Homeowners
Car dealerships everywhere are blaring the incentive of payment protection plans, offering to cover car payments up to an amount for a certain period of time, should a borrower lose his job.
First Mortgage Company has launched a similar initiative on April 28, 2009.
The company will pay homeowners’ monthly loan payments for up to six months if the homeowner becomes unemployed within the first two years of the loan.
The program, Job Loss Payment Protection, covers payments of up to $1,800 per month, if one of the signers on the loan loses his or her job.
“Home prices are affordable, interest rates are the lowest they’ve been in decades, and first-time buyers get an $8,000 tax credit,” says George Akers, executive vice president of First Mortgage Company. Akers says the only reason people may not buy now is fear of losing their jobs — although, most industry insiders say fear of unemployment, albeit an overwhelming concern, is just one cause of hesitation for potential homebuyers in the current economy.
Nonetheless, Job Loss Payment Protection offers a safety net for those whose main drawback to homeownership is the fear of job loss.
The program is available to all new First Mortgage Company customers applying for FHA, VA, and USDA loans. The program covers the monthly loan principal, interest, taxes, and insurance. First Mortgage said it hopes the program serves as a tool for Realtors and builders to help sellers provide added value to their home and buyers feel more secure in their decision to purchase a home.
Job Loss Payment Protection is available at all locations in greater Colorado Springs, Colorado; Boise, Idaho; Omaha, Nebraska; Tulsa and Oklahoma City, Oklahoma; Amarillo, Dallas-Fort Worth and Eagle Pass, Texas; and Puyallup, Washington.
FOR MORE DETAILS CALL ME TODAY!!!
918-496-2241 x230
Jim Bigelow Bigelow Group Realtors 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
Coldwell Banker Select
economy
Recession Job Hunt
May 7, 2009 by Jim Bigelow · Leave a Comment
Recession Job Hunt
Competition for Jobs in a Slow Economy
Veterans discharging from the Armed Services meet new challenges. Job Fair lines are getting longer as unemployment rates climb. Don’t panic/plan to adapt and succeed.
Be versatile, mobile, and plan to go where the jobs are. It’s likely you have full or partial paid move coming, courtesy of Uncle Sam. If you are willing to relocate, and a prospective employer does not have to pay moving expenses; you have become a hot commodity.
Read the papers and explore companies own websites. Focus on new contracts or a company product. This gives you an in, while others are on their way out. Take part time work if it is available, seasonable or temporary. Any of these can help you pay the bills, and possibly get you an audience with the decision makers once the economy revives.
To succeed at a Job Fair, prepare before hand on the position you want. Be prepared to tell a prospective employer how you will mesh with his organization and what skills you will bring to a position.
Research the company for specific openings the employer is looking to fill. Don’t waste time handing out resumes that don’t relate your skills for the job. The goal of job hunting is to get a second interview.
Follow up, get a business card and don’t call, a hand written thank you note, referring to the Job Fair makes you more noticeable. Send a fresh resume on nice paper, and always send a cover letter with every resume.
Companies who are hiring include: Banfield, Farmers Insurance, Gentiva Health Services, ITT Corp, M.A.R.S. International, Pricewaters, Service Master, 7-11, and Quik-Trip. Pick the positions you want, and refine your efforts accordingly, or find a company that looks like the right fit, learning all you can, and fine tuning your approach.
As a military retiree, dedicated to the military personnel and their families, I urge you to contact Coleman White@Jimbigelow.com for all your real estate needs.
Coleman White 918-760-1317
coleman@jimbigelow.com www.jimbigelow.com
Jim Bigelow Bigelow Group Realtors 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
Coldwell Banker Select
economy
Military Orders Push Families into Transitional Housing Market
January 29, 2009 by Jim Bigelow · Leave a Comment
Military Orders Push Families into Transitional Housing Market
Unlike many Americans suffering the sting of adjustable rate mortgages with balloon payments and the decline of home values in the United States – many service members face a different dilemma. They are forced to move with the military and either sell or rent their homes in a depressed housing market.
Numerous markets across the country are experiencing a sharp decline in sales, pricing, and a decline in interest rates.
However, theTulsa housing market sales increased approximately 4.5 percent from 2002 through 2008, and sales price increased to approximately 6 percent. Low interest rates in Tulsa has helped fuel our economy, and is a positive factor for military and retires decision to relocate to Oklahoma. Employment, economics, tax exemptions, and favorable mortgage rates are key factors in our state that encourages veterans, military personnel, and their dependents to move to Oklahoma. This State’s aggressive real estate market should be an example for each state. Unique to Oklahoma, the State offers various programs and discounts to veterans depending on status and disability rating (as rated by the VA). The cost of living ratio in Tulsa is favorable, and our economy is stable and culturally diversified. Tulsa welcomes and honors military personnel, their families, veterans and support agencies to our great city.
You have to admit whether you are a Tulsa native or relocating to the metro area, Tulsa has all the activities you would be looking for plus a great and helpful veteran community.
Please all comments to Coleman White @ The Jim Bigelow Group.
Coleman White, Sales Executive
Jim Bigelow Group, Coldwell Banker Select
918-760-1317
Jim Bigelow 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
Coldwell Banker Select
economy
Economy Squeezing Your Insurance Budget? Think Term Life
January 23, 2009 by Jim Bigelow · 1 Comment
Economy Squeezing Your Insurance Budget? Think Term Life
(ARA) – It’s an economy-driven dilemma: In these shaky financial times, you know it’s more important than ever to protect your family’s solvency with life insurance. But these days, you don’t have a lot of money to spend on monthly premiums.
Term life may be the solution. Term life insurance can provide you with the coverage you need to protect your family until the economy improves – and at a cost you can afford. Wondering if term life fits into your lean-times budget? Consider this:
* Monthly premiums for term life are generally far less than premiums for whole life policies. This makes term life much more affordable for people on a tight budget.
* You can choose how long you’ll keep the policy and how much the coverage amount will be. This means you pay for coverage only for as long as you believe you’ll really need it – until a dependant child finishes college, or retirement gives you access to 401(k) funds, or the economy improves and the financial threat to your family decreases.
* Some companies offer virtually “instant” approval and immediate coverage, versus the sometimes weeks-long application process for a whole life policy.
* While with traditional term life you won’t get any money back if you don’t die before the term ends, many companies now offer term policies that do have a cash value (for a slightly higher premium). And most will allow you to convert your term policy to a “permanent” one under certain circumstances, meaning a portion of your premium after conversion will go towards building cash value with interest.
* Your beneficiaries won’t be taxed on the proceeds from your term life policy.
* Term life is a great way to supplement existing policies that are now inadequate due to inflation, such as an employer-sponsored life plan or an older whole life policy.
* The money you save in premium costs for term life can be put to better use elsewhere – such as investing in your retirement, your child’s college fund or in improving your home.
The easiest way to comparison shop for term life insurance is to go online to a site like www.InsWeb.com. You’ll need to complete a detailed quote form, but at the end of the process you’ll receive multiple quotes from agents in your area, as well as major insurance carriers – usually within 24 hours of completing the form.
Copyright © 2008, ARAnet, Inc.
Jim Bigelow 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
Coldwell Banker Select
economy
FAMILY
January 7, 2009 by Jim Bigelow · Leave a Comment
The following is a page from my website Titled FAMILY. if you would like to see more pages like this or finish any of the articles please visit www.jimbigelow.com
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FAMILY |
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economy
Welcome 2009
January 6, 2009 by Jim Bigelow · Leave a Comment
Welcome 2009
HAPPY NEW YEAR!!!!!
On behalf of myself and most of the people I have talked with WELCOME 2009.
It has been a little over 1 year since our historic ice storm, which Stunned everyone in the Metro Tulsa area and left us numb and frustrated for the whole year. Which was followed by Months of record setting RAIN then straighth to record setting EXTREME HEAT.
During whole time we were held captive by a very long and tiring Presidential race for the White house, CRAZY HIGH gasoline prices, and collapsing real estate markets in various parts of the country.
We ended the year with Mortgage company and Automobile manufacturing government bail outs. The Whow, and that was not everything. The only good news it seems like is that our local economy and real estate market remained good.
Whow, I am glad 2008 is behind us. The good news is our gasoline price and weather is better, The elections are over, The mortgage interest rates are low and YES you can get mortgages for homes. The Tulsa real estate market remains good. We have learned from our own local problems back in the late 1980’s when the oil industry collapsed and again in the 1990’s with telecommunications. Eastern Oklahoma now remains stable while other parts of the counrty are struggeling.
I invite everyone to welcome in 2009 and let’s keep our community going in the right direction. Thank You, Tulsa and everyone of the citizens of oklahoma for making our state a great place to live, work and raise our children.
Jim Bigelow
The Bigelow Group
Coldwell Banker Select
918-640-4657
economy
I Can Help!
December 23, 2008 by Jim Bigelow · Leave a Comment
I Can Help!
Many recent news stories have stated there are an increasing number of home foreclosures nationally and to some degree in this area of the country. I know I am seeing more bank owned and foreclosed homes on the market now than I did just a few years ago. A weaker national economy, adjustable rate loans and subprime mortgages are the major factors contributing to this trend.
Sadly, some of these foreclosures could be averted, but many homeowners are often unaware of their options. Sometimes lenders will work with borrowers to defer some portion of payments until their economic situation improves. In other circumstances a lender may accept less than a full payoff of the loan to allow the home to be SOLD rather than being foreclosed – called a short sale.
If you are behind on house payments and/or facing a possible foreclosure, I can help! Contact me at 918-640-4657 or jim@jimbigelow.com. Of course, all inquires are confidential
economy
Mortgage Monday – “I heard that interest rates are zero!”
December 22, 2008 by Jim Bigelow · Leave a Comment
“I heard that interest rates are zero!”
Or something to that effect…go some of the phone calls that we are receiving. On December 16th, the “Fed” (Federal Reserve) did reduce The Fed Funds Target Rate to historical low levels. The Fed Funds Target Rate is now a Target Range of 0.00% to 0.25%. The Fed Funds Target Rate is a short-term rate objective of the Federal Reserve Board. The actual Fed Funds Rate is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight.
But there are so many other factors in our global economy that affect mortgage interest rates…and while the Fed Funds rate has an indirect effect…often in opposite directions…the other factors, such as the push for the Fed buying mortgage backed securities, good old supply and demand and many other factors, affect the mortgage rates.
Freddie Mac’s weekly survey released December 18th showed rates falling to 5.19 percent, the lowest in its 37- year history and down from 6.46 percent on Oct. 30.
End result, it may be the best time in decades to look at a refinance or purchase. Call me for a no cost, no obligation analysis to see if it is right for you to refinance or to prequalify for a purchase.
And, one more item…on the news on Saturday night, while they are discussing the hot button topic of refinancing, they incorrectly stated that it would take a 700 or higher credit score to refinance. We offer loans for purchase and refinance with a 580 or higher credit score. These are “prime”, NOT subprime, loans. If you got a mortgage in the past with unfavorable terms, such as a balloon or ARM (adjustable rate mortgage), combination 1st and 2nd (such as an 80-20), etc…give me a call to see what we may be able to do to help.
Steve Bell
Jim Bigelow 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
Coldwell Banker Select
economy
Tulsa Economic Snapshot Part 5/5 Tulsa Metro Chamber
November 16, 2008 by Jim Bigelow · Leave a Comment
Summary and Caveats
The Tulsa-area economy is expected to grow in fourth-quarter 2008 and 2009 at a rate appreciably less
than was seen in 2007.
Although Tulsa’s economy was hardly affected directly by the mortgage and housing crisis, it has been
affected indirectly by tighter lending practices to consumers and businesses.
The negative impact of higher energy prices on everyone has been partially offset in Oklahoma and Tulsa
due to the large concentration of energy production businesses.
Accounting for more than a third of all manufacturing employment in the state, Tulsa has thrived in strong
export market for its production of capital goods at very competitive prices brought on by a cheap dollar.
The growth of the national mortgage crisis into a global financial crisis likely will dampen demand for our
capital goods as growth slows in Europe and Asia, increasing the chance that Tulsa growth could slow
more than currently forecasted. Nonetheless, Tulsa should continue to grow faster than the U.S.
economy.
Two W
Bob Ball
Economic Research
918-560-0262
BobBall@TulsaChamber.com
Jim Bigelow
economy
Tulsa Economic Snapshot Part 4/5 Tulsa Metro Chamber
November 15, 2008 by Jim Bigelow · Leave a Comment
o At least one economist (Mark Snead, OSU Center for Applied Economic Research)
expects Tulsa-area non-farm employment numbers to be revised upward in the near
future by the Bureau of Labor Statistics, which should correct the following anomalies.
Manufacturing, the mainstay of the Tulsa-area economy has consistently shown
strong growth due to a strong export market for capital goods, but reflects a
year-over-year decline in August of 1.1 percent.
Professional and Business Services reflects a decline of 4,000 jobs year-overyear
for August, a decline of 6.3 percent, a large turnaround from first-quarter
2008.
• Tulsa-area non-farm employment should grow 1.6 percent in 2009 after posting growth in 2008
of 0.6 percent, while U.S. non-farm employment will show no growth in 2008 or 2009.
Unemployment Rate
• The unemployment rate in a full-employment market is considered to be 4.8 percent to five
percent. The August unemployment rate in Tulsa was 3.8 percent, reflecting a tight labor market
in which the demand exceeds supply for technology-based trained workers in engineering,
computer and engineering technology, drafting and design; certified tradesmen in welding and
electrical contracting; and business services such as accounting and information systems design.
• The unemployment rate for the Tulsa MSA averaged 3.5 percent in the second quarter of 2008,
having trended downward from 4.3 percent in first-quarter 2007. Over the same period, the U.S.
rate rose from 4.8 percent to 5.3 percent.
• Current unemployment rates are 3.8 percent for Tulsa, 6.1 percent for the U.S.
• The forecasted unemployment rate for the Tulsa MSA is 3.4 percent in 2008 and 3.6 percent in
2009, reflecting a continued tight labor market and the need to attract new employment to the
area. For the U.S., the unemployment rate should be 5.3 percent and 6.0 percent in 2008 and
2009, respectively.
Bob Ball
Economic Research
918-560-0262
BobBall@TulsaChamber.com
More Tomorrow
Jim Bigelow
economy
Tulsa Economic Snapshot Part 3/5 Tulsa Metro Chamber
November 14, 2008 by Jim Bigelow · Leave a Comment
Non-farm Employment
• Total Non-farm Employment in the Tulsa MSA in August 2008 is 425,700, up 38,500 jobs from
387,200 in January 2004, the lowest level in the last downturn,.
• At 425,700 jobs, August employment is down 3,300 jobs from the recent peak of 429,000 jobs in
October 2007.
o The eight-month average employment through August 2008 is down 1.0 percent from a
year earlier.
o In the last six months, total employment has grown 2,500 jobs, or 0.6 percent.
• The stagnant growth in number of jobs for the year through August relative to 2007 appears to
be inconsistent with the persistently low unemployment rate and the growth in employment for
key target sectors in the Tulsa-area economy.
o The unemployment rate has ranged from 2.9 percent in April 2008 to 4.2 percent in
June, reflecting “more than full employment.”
o The current unemployment rate is 3.8 percent (August 2008).
o Employment year-over-year in August is up in:
the goods-producing industries of mining and construction by 2.9 percent and
4.0 percent, respectively;
transportation and warehouse operations by 1.1 percent;
health care and social assistance by 3.3 percent; and
machinery manufacturing by 0.9 percent.
Bob Ball
Economic Research
918-560-0262
BobBall@TulsaChamber.com
More Tomorrow
Jim Bigelow
economy
Tulsa Economic Snapshot Part 1/5 Tulsa Metro Chamber
November 12, 2008 by Jim Bigelow · Leave a Comment
Tulsa Economic Snapshot
October 14, 2008
Compiled by Bob Ball
Economic Research Manager
Tulsa Metro Chamber
Tulsa Snapshot
The Tulsa economy has performed well in 2008, despite problems nationwide which were brought on by
the mortgage/housing crisis. The Tulsa economy performed better than the U.S. and will continue to
perform better than the U.S. in 2009.
Housing Market:
- Tulsa never developed a housing-price bubble such as those which developed elsewhere in the
U.S. when home prices grew disproportionately fast relative to personal income.
o Tulsa income and home prices have grown steadily together throughout the most
recent expansion from 2004 to now.
o Currently Tulsa personal income adjusted for inflation is estimated to be growing 2.7
percent annually; the average selling price for single-family home in Tulsa is $157,667
over the first eight months of 2008, up 2.8 percent over the same period a year earlier.
o The number of single-family home construction permits in the Tulsa area is 32 percent
down from the record filing pace set in 2006 and 2007, but the average value for a new
permit is up five percent for the year through August 2008.
o Tulsa-area home prices are expected to rise between 2.0 percent and 3.0 percent in
2009; U.S. home prices are expected to be down by one percent in 2009.
Bob Ball
Economic Research
918-560-0262
BobBall@TulsaChamber.com
More Tomorrow
Jim Bigelow
