This website provides an annual free credit report from each of the three credit bureaus – Equifax, TransUnion, and Experian. During the process, you have to prove who you are and that you’re entitled to receive the information so collect account numbers, social security numbers, etc. to make the process easier.

After you print off the report, check it thoroughly for any inaccuracies and mistakes. Mistakes could include a paid debt that is reported as unpaid, mistaken identity especially if your name is the same as your father’s, “open” credit cards that have been paid off and closed, incorrect social security numbers. When you find a mistake, you can call the credit bureaus to affect the correction but a letter sent certified mail might be the better choice since all the bureaus have automated telephone system and it can be difficult to impossible to get through to a “live” person.

Correcting any mistakes you find on your credit report can increase your FICO score – the score most commonly used by lenders to determine your creditworthiness. And increasing your FICO score can reduce the interest rate you pay on new loans, thus, saving you money on those loans.

Next up – how to increase your FICO score

Idaho Housing and Finance Association (IHFA), known for its first time home buyer programs, is currently offering 5.91% with no discount points, 30-year, fixed rate home loans to any home buyer who earns less than $70,200 per year for a 1- or 2-person household and who purchases a home in Canyon County that is priced under $334,000. And with prices coming down in the county over the past several months, now is the time to take advantage of the low interest rate and the affordable prices.

Conventional, VA and FHA loans are available through this program so the home buyer can choose the plan and downpayment that works best for them.

For more information about this program, visit the IHFA website or contact me at 208.866.5590.

The newspaper reported that the median home price of homes sold in June 2007 was $235,090. Median home price means that an equal number of homes sold above and below the median price. But does a rising median home price mean that home prices are “still climbing”? Let’s look at one reason why median home prices could be rising while home prices are declining.

First time home buyers are pretty rare in the market we’ve had over the past couple of years. Before home prices started rapidly moving up in 2005, a first time home buyer could purchase a comfortable home in Boise for under $120,000. Today that same home would be priced near $180,000. Back in 2005, the principal and interest on a loan to buy that $120,000. home would have been around $720./month; now they would have to pay around $1080/month for that same home (figuring a 30 year loan and interest at 6%). Too many first time buyers have been priced out of the market so although there is a demand for lower priced homes the supply just isn’t there. So sellers – those who HAVE to sell – are continuing to reduce their prices until they can’t go any lower or until they find the price where a buyer is able and willing to purchase.

So who is buying? Buyers who have the means to purchase without selling their existing home. In other words, buyers who will be purchasing homes priced above – sometimes well above – the median price level.

Median home price rising does not equate to home prices climbing. We’re still feeling the effects of the soaring home prices of 2005 and 2006 but on the flip side. Bottom line is that home prices are not “still climbing” but are settling back to a place that is more sustainable for the economy in Boise, Idaho.

The Subprime Loan Hype

by Kellie Allen

The headlines are full of news on the mortgage and real estate front about the “subprime meltdown”. What exactly is going on and what impact if any does it have on you?

A “subprime” home loan is a loan where the client has some significant credit issues or was for some reason unable to qualify for standard financing. These loans are risky for the lender and therefore bear a higher rate to the client. Most often these loans are adjustable rate and carry a prepayment penalty. These loans have been around for a long time, so why all the drama now?

The current rising interest rate environment has meant that these adjustable rate loans have been on the up swing. As these rates move higher, so do the monthly payments. Homeowners are finding it difficult to keep up with the increased payment. In the past, a homeowner would put the house on the market, get enough profit to pay off the existing loan and prepayment penalty and move on. The problem today, is with the soft real estate market houses are not selling as quickly and home appreciation rates have moderated.

This leaves the subprime homeowner stuck, causing many to be foreclosed upon. As more and more loans are defaulting, lenders are forced to tighten up lending standards across the board. This in turn makes it tougher for the troubled homeowner to refinance as a possible solution.

So, how does this impact you?

Long term, it may mean higher interest rates ahead as lenders have to absorb the cost of the loans they have back, combined with the cost of increased compliance and accountability standards.

Now more than ever it is important you work with a true mortgage planning professional. It is the perfect time to get that “financial check up” to make sure you are in the right loan for your short and long term plans.

For more information, contact Kellie (208) 938-6611 or visit Kellie’s website.