Mortgage & Equity

Projected Housing Appreciation in New Mexico

From an October 2007 report by Housing Predictor, Independent Real Estate Market Forecasts:

Although housing sales have slowed throughout the over-whelming majority of state markets, eight states have regionally vibrant economies and at least some appear to be strong enough to weather the nation's mortgage crisis storm without substantial damage, at least for now.

Record high foreclosures have devastated housing markets in the majority of the U.S. along with higher mortgage rates and an already over-built residential market place. The slow down in home sales has transformed what once was an all-time boom market into the worst housing market that the nation has witnessed since the Great Depression.

However, the current national market place does not resemble the nation's housing market of the 1930's. There are an estimated 78 million homes in the U.S. today, the highest number in history and according to a study by the National Bankers Association more than 40% are paid-off without mortgages.

States with Appreciation
Wyoming	Virginia	Washington
Utah	North Carolina	New Mexico
Texas	Pennsylvania

Washington State perhaps has the strongest economy in the nation. Technological powerhouse Microsoft and airplane manufacturer Boeing are huge employers and are expanding with the hiring of more employees in the Seattle area.

Texas and New Mexico's housing markets were a little late to the booming market and as a result of their late entry and growing statewide economies the markets in both states are generally healthy and should remain that way for some time yet.

Utah has seen record appreciation, and although home sales in some markets have slowed, statewide the real estate market is very healthy with more businesses moving to the state.

Natural gas exploration and drilling has transformed once quiet Wyoming's real estate market into a dynamic marketplace that shouldn't see a slow down for some time yet.

Saved by its old history, Pennsylvania never really saw a booming real estate market and remains on the appreciation list as a result of consistent appreciation rather than a boom to bust cycle. However, that can't be said for high priced Virginia housing, which remains on the list as a result of a short lived slow down that seems to have stopped at least for now.

Above all the other states in the nation, North Carolina may surprisingly have the strongest housing market statewide in the nation. Charlotte has seen home sales slow as the state's largest city. But the state's markets overall are racking up sales as if there was hardly a slow down at all. Despite the national slow down, exceptionally strong regional economies keep the only states that remain on the top Housing Predictor appreciation list on it.

Angela Muxworthy, Mortgage Manager at New Mexico Educators Federal Credit Union, added her own comments to this report: "Conventional Mortgage rates are still historically low, and with the current inventory of homes on the Albuquerque market, buyers have more purchasing power than in previous years. We can help you find a home to suit your family and your budget."

Buying Guide

Credit Union Consumer Facts Home Buying Program

Credit Unions Recommended for Mortgages

WASHINGTON (8/24/07)-Credit unions have been on a media roll lately, with the Credit Union National Association (CUNA) contributing information in light of the mortgage loan crisis and with various nationwide media telling their audiences to consider a credit union.

On Wednesday and Thursday, credit unions were touted in at least four nationwide articles or broadcasts: Business Week Online, CNN, Dow Jones Newswires and MarketWatch.

Those articles followed other items earlier in the week in USA Today, Dow Jones, MarketWatch, CNBC and Business Week.com.

Business Week Online (Aug. 23) said mortgage lenders who depended on the secondary market to buy their homes were reducing jumbo-loan initiations or raising their rates. CUNA Chief Economist Bill Hampel weighed in on the impact, telling the publication that the jumbo-loan availability setback was unlikely to become a long-term problem.

"The near drying up of jumbo loans is not going to last much longer, but jumbo loans are going to be a little more expensive than they used to bill," Hampel said. "It's not going to be, 'Can I get a loan or not?' but 'How much am I going to pay for this loan?" That, he said, could still hurt demand for luxury homes.

Mike Schenk, vice president of CUNA's economics and statistics, told Dow Jones Newswires (Aug. 22) something similar. "Credit unions have very low delinquencies and very low charges, and therefore they're in a better position to continue to lend." He noted first mortgage delinquencies at credit unions were 0.33% and net charge-offs were 0.02%. "We tend not to make loans that blow up. If that loan is sitting on our books, we care what's going to happen in a year or two down the road," he said. Another factor: credit unions are owned by 90 million members and improved returns lead to lower fees and rates. In an article entitled "As Lenders Tighten

Mortgage Standards, Credit Unions Stay the Course," MarketWatch via RISMedia.com (Aug. 23) noted that consumers searching for loans "may be able to find a friend in their credit union." In the article Hampel said credit unions didn't have as many things to worry about as a mortgage banker that had to sell on the secondary market.

Subprime loans never thrived in credit unions and Alt-A mortgages are used sparingly, said Hampel, adding credit unions "don't want to get members into a deal where they will likely lose their home."

Steve VanSickler, chief lending officer at Red Rocks CU, Highlands Ranch, Colo., also was interviewed and explained that credit unions take a measured approach to how a mortgage works with the member's overall financial picture.

The article also referenced CUNA's website and told how to find a credit union.

AT CNN, CNN's personal finance editor, Gerri Willis, told morning listeners (Aug. 23) how the tightened underwriting in mortgages has drifted into credit cards, auto loans, personal loans, home equity loans, making it tougher for consumers to get these loans and they'll cost more.

For consumers trying to a get a loan now, she said, "Think about a credit union. This is a money co-op. People get together, they join together, they put their money together. They're not part of the credit crunch." She also referred to CUNA's web site and urged listeners to "see if you can join a credit union in your area."

Source: Credit Union National Association

Opt Out of Uninvited Mortgage Offers

You can protect your personal financial information and avoid receiving unsolicited phone calls.

Picture this: You apply for a loan from a local mortgage company on a Monday afternoon. By Tuesday morning, you're getting unsolicited phone pitches from out-of-state lenders who seem to know a lot about your personal finances:

Your credit scores.
Your outstanding credit card balances and other revolving credit accounts.
The approximate market value of your home and how much you owe on it.
Your home address and obviously, your phone number.

Thousands of loan applicants around the country are receiving uninvited pitches such as these, sometimes just 12 hours after getting a mortgage quote.

The nation's three largest credit bureaus who sell this information to lenders defend their right to sell applicants' personal financial information. The biggest problem, however, may be the confusion that overnight "trigger" marketing brings to the mortgage business. Your local lender or broker quotes you one rate and estimated fees. But now one or more outside lenders -- whose reputation for honesty or service you know nothing about, and who are in possession of your personal financial data without your permission - intervene and offer a lower rate.

Are the rate quotes real? Or will they morph into costly bait-and-switch deals weeks or months from now? You really can't know. But what you can do is remove yourself from all potential trigger list come-ons by opting out. Much as with the federal Do Not Call program, you can opt out of pre-screened offers by going to http://www.optoutprescreen.com/ or by calling this toll-free number: 888-567-8688.

Source: WashingtonPost.com