Each year, thousands of Williamson County residents move into the home of their dreams.  But time goes by, families expand, kids grow older, and suddenly your home isn’t quite so perfect anymore.  Or maybe you still love your home, but you really want a gourmet kitchen and a larger master bedroom.  Now you are wondering:  Should you start looking for a new house?…. Or would it be better to stay where you are and remodel instead?

Both options often involve a significant investment of time and money, so it’s important to take your time and make an informed decision. You’ll also want to be sure to consider both the financial and the emotional sides of the equation. Here are some of the financial factors involved:

Moving:  A good local real estate agent should be able to assist you with estimates on these numbers.

•  How much will it cost to purchase a home that will meet your needs?
• How much could you sell your existing home for? (Don’t forget to subtract the agent’s commission from this total)
• What will it cost to move? (According to real estate consultant and best-selling author of Remodel or Move, Dan Fritschen, a typical move costs 10% of the value of your home)
• How much will your property taxes increase as a result of the move?

Remodeling:  An architect or general contractor will be able to assist you with these figures.

•  What projects do you want to have done and how much will they cost?
• Do you have the option of completing the remodeling in several phases?
• How much will the improvements add to the value of your home, also known as the “payback”? A local real estate agent can assist with this as well.

If the decision about whether to renovate or move were purely a financial one, then it would be quite easy to look at the numbers and come to the right conclusion. However, there are also emotional reasons that should be considered. Here are some of the possible factors:

Reasons you may want to move:

•  If you relocate to a new neighborhood, your children could attend superior schools.
• You would like to reduce your commute or have better access to local amenities, such as restaurants and shopping.
• You’re not particularly fond of your current neighborhood.
• Your yard is too small, and you cannot expand it.

Reasons you may want to stay and remodel:

•  You’re happy with your location. It’s convenient, you love your neighbors, and the schools are either excellent or are not a factor.
• You love the layout of your home.
• All you need is a little more space, and your home will be perfect.

Of course only you know what is truly important for your happiness, so try to use these questions as a starting point. Create a list of the pros and cons of each scenario and leave it someplace accessible, so that you and your spouse can add to it as you think of additional factors. You may also want to consider attending open houses and visiting new housing developments to see what is available and how your home compares.

Once completed, your list and your financial assessment should provide a clear direction as to the best option for your family’s future.   Whether you decide to remodel or buy a new home, it’s important to ensure that you have proper financing in place prior to moving forward. If you decide to purchase a home, a mortgage originator will help you to determine how much you can afford, as well as which loan package works best with your overall financial plan. In the case of remodeling, you should meet with a mortgage professional before any construction takes place. Otherwise you may severely limit the type of financing options available to you.

For Additional information contact:  Lee Barroll at 615-243-1301 or email: lee.barroll@fcmhomeloans.com

When a marriage ends in divorce, the lives of those involved are changed forever. During this time of upheaval, one thing that shouldn’t have to change is the credit status you’ve worked so hard to achieve.

Unfortunately, for many, the experience is the exact opposite. Unfulfilled promises to pay bills, the maxing out of credit cards, and a total breakdown in communication frequently lead to the annihilation of at least one spouse’s credit. Depending upon how finances are structured, it can sometimes have a negative impact on both parties.

The good news is it doesn’t have to be this way. By taking a proactive approach and creating a specific plan to maintain one’s credit status, anyone can ensure that “starting over” doesn’t have to mean rebuilding credit.

The first step for anyone going through a divorce is to obtain copies of your credit report from the 3 major agencies: Equifax, Experian®, and TransUnion®. It’s impossible to formulate a plan without having a complete understanding of the situation. (Once a year, you may obtain a free credit report by visiting www.AnnualCreditReport.com.)

Once you’ve gathered the facts, you can begin to address what’s most important. Create a spreadsheet, and list all of the accounts that are currently open. For each entry, fill in columns with the following information: creditor name, contact number, the account number, type of account (e.g. credit card, car loan, etc.), account status (e.g. current, past due), account balance, minimum monthly payment amount, and who is vested in the account (joint/individual/authorized signer).

Now that you have this information at your fingertips, it’s time to make a plan.

There are two types of credit accounts, and each is handled differently during a divorce. The first type is a secured account, meaning it’s attached to an asset. The most common secured
accounts are car loans and home mortgages. The second type is an unsecured account. These accounts are typically credit cards and charge cards, and they have no assets attached.

When it comes to a secured account, your best option is to sell the asset. This way the loan is paid off and your name is no longer attached. The next best option is to refinance the loan. In other words, one spouse buys out the other. This only works, however, if the purchasing spouse can qualify for a loan by themselves and can assume payments on their own. Your last option is to keep your name on the loan. This is the most risky option because if you’re not the one making the payment, your credit is truly vulnerable. If you decide to keep your name on the loan, make sure your name is also kept on the title. The worst case scenario is being stuck paying for something that you do not legally own.

In the case of a mortgage, enlisting the aid of a qualified mortgage professional is extremely important. This individual will review your existing home loan along with the equity you’ve built up and help you to determine the best course of action.

When it comes to unsecured accounts, you will need to act quickly. It’s important to know which spouse (if not both) is vested. If you are merely a signer on the account, have your name removed immediately. If you are the vested party and your spouse is a signer, have their name removed. Any joint accounts (both parties vested) that do not carry a balance should be closed immediately.

If there are jointly vested accounts which carry a balance, your best option is to have them frozen. This will ensure that no future charges can be made to the accounts. When an account is frozen, however, it is frozen for both parties. If you do not have any credit cards in your name, it is recommended you obtain one before freezing all of your jointly vested accounts. By having a card in your own name, you now have the option of transferring any joint balances into your account, guaranteeing they’ll get paid.

Ensuring payment on a debt which carries your name is paramount when it comes to preserving credit. Keep in mind that one 30-day late payment can drop your credit score as much as 75 points. It is also important to know that a divorce decree does not override any agreement you have with a creditor. So, regardless of which spouse is ordered to pay by the judge, not doing so will affect the credit score of both parties. The message here is to not only eliminate all joint accounts, but to do it quickly.

Divorce is difficult for everyone involved. By taking these steps, you can ensure that your credit remains intact.

For Additional information contact:  Lee Barroll at 615-243-1301 or email: lee.barroll@fcmhomeloans.com

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Taking the step into home ownership is one of the most important financial decisions a person will make in their lifetime. There are many factors to consider when embarking on this venture. Literally hundreds of loan programs are available, and it is important to find the one that best fits your personal long-term goals.

First and foremost, you must have a mortgage consultant in your corner that is willing to take the time to know what your long-term goals are. Communication is the key factor here.

Curious prospective home buyers sometimes turn to Internet-based services just to see what current interest rates are. But a faceless web site will not take the prospect’s future financial planning into consideration or guide the potential borrower through the many nuances of the loan process. When shopping for a home loan, be wary of web-based services that offer programs to reel prospects in with attractive rates that are based upon unrealistic time frames.

If a lender is offering a terrific rate based on a 10-day lock-in period, it is unlikely that the potential home owner would actually be able to find their dream home, get through the negotiation process and win approval from a lender within such a short period of time. This is called short-pricing, and when it comes time to close the transaction, the rate that was originally offered is simply no longer available. As a result, the unfortunate prospect is bulldozed into a loan program with a higher interest rate.

It is highly unlikely that a qualified loan originator whose business is based upon referrals will use unscrupulous tactics such as this to get new customers in the door!

Once you have found a mortgage consultant that you feel comfortable working with, lay your goals out on the table because it will have a tremendous impact on choosing a loan program that meets your specific needs. One of the most important factors to consider is how long you wish to borrow the money for. For example, if you know you will only be in the home for five years, it wouldn’t make sense to opt for a 30-year loan program or pay points up front to secure a lower interest rate. You would not be in the home long enough to benefit from such action.

Your mortgage consultant should be able to narrow down a selection of programs based on the information that you have provided, and present you with an easy-to-read spreadsheet that clearly defines viable options for your interest rate and amortization schedule, monthly payment and any potential savings you may realize by paying points up front.

Moreover, a reputable loan originator will not hesitate to share this information with your tax consultant or financial planner so they may offer additional feedback on your behalf.

Home ownership imparts a rewarding vehicle for building wealth and a strong financial future. The mortgage consultant that you choose should be there not only when your loan closes, but should also provide you with ongoing service to assist you in managing that debt over time.

For additional information please contact Lee Barroll at 615-938-7504 or email lee.barroll@fcmhomeloans.com.

Down Payment Assistance for First Time Homebuyers in Nashville, Brentwood and Franklin, TN.

In Middle Tennessee there is a program called Home Ownership Now and is administered by The  Housing Fund Inc.  They offer this program to persons who want to buy a home in counties in the Nashville Metropolitan Statistical Area.  These include Davidson, Williamson, Cheatham, Dickson, Robertson, Rutherford, Sumner or Wilson Counties.  Prospective home buyers can borrower up to $7000.00 to be used for Closing Costs, Pre Paids and Down payment assistance.  This is a second mortgage loan with a low monthly payment of $50.00 to be paid back over a period of 15 years.   There are four tiers of financial assistance depending upon the total household income.

Here are the basic requirements:

• All NOW loans are secured by a Promissory Note and a Second Deed of Trust, subordinated only to a first mortgage
• All borrowers are required to complete homebuyer education classes before closing.  These classes are offered by THDA approved counseling agencies.  THF will assist the client in locating the most appropriate and convenient agency.
• Borrower must contribute at least 1% of the sales price from their own funds to the purchase
• All borrowers must be at or below the area median income (AMI)

The now loan can be used in conjunction with an FHA, THDA (Great Rate), VA, USDA Rural Development or conforming conventional fixed rate loan.

Borrower must complete a THF Borrower Application.  This can be completed at THF or at the Homebuyer Education Agency.

For more complete information please contact The Housing Fund at:

The Housing Fund, Inc.
305 11th Avenue, South
Nashville, Tennessee 37203

Phone: (615) 780-7000

Fax: (615) 780-7001

Email: mail@thehousingfund.org

For information on obtaining your First Mortgage to use with The Now Loan please call Lee Barroll @ 615-938-7504 or email at leebarrroll@fcmhomeloans.com.

Honoring America’s Heroes on Veterans Day

On Friday, November 11, the nation will observe Veterans Day. This is a wonderful opportunity to honor America’s veterans for their patriotism, love of the country, and commitment to serve and sacrifice for the common good of the USA.
Did you know Veterans Day dates back to November 11, 1918 when the Germans signed the Armistice, an order to cease fire, and World War I ended? Originally, Veterans Day was known as “Armistice Day,” but the name was changed to Veterans Day in 1953, so that all military veterans could be honored and acknowledged.
One of the most recognized Veterans Day ceremonies is held at Arlington National Cemetery, which draws hundreds, if not thousands of visitors. This ceremony is held on November 11th at exactly 11:00 am. At that time, a military color guard honors America’s war dead at the Tomb of the Unknowns. The Tomb of the Unknowns is a shrine honoring the many thousands of veterans who gave their lives in defense of our nation.
As powerful as the National Ceremony is, you don’t have to travel to the nation’s capital to take part in a ceremony. Each year, the Veterans Day National Committee selects a number of regional sites for Veterans Day observances throughout the country–from parades and ceremonies to military exhibits and tributes. To learn more and find a ceremony near you, visit the Department of Veteran Affairs website for a listing of regional information.
In addition, you can also dedicate some family time to learning more about Veterans Day and the military heroes it honors. You can find a number of resources online, including the official history of Veterans Day and a teacher’s guidethat includes information, activities, and even coloring book pages for kids.
As we pause and pay tribute to America’s veterans, we must honor them with our gratitude, knowing that they served and sacrificed to protect and preserve the values of this great nation…and continue to do so today. May we never forget their strength, courage, and profound willingness to stand up and defend our way of life.
I hope this important holiday finds you and your family well.

If you have any questions regarding qualifications for a VA home loan please call me at 615-938-7504 or email lee.barroll@fcmhomeloans.com.

If you’ve been watching the economic news, you’ve probably noticed that market experts and traders have been keeping a close eye on the Commerce Department’s Personal Spending and Personal Income reports. Obviously, those reports provide insight into the health of our economy, but did you know they also influence home loan rates? That’s right, personal spending can actually influence the interest rates that are available when you purchase or refinance a home.

Here’s why. It has to do with something called the velocity of money. Even though the government keeps pumping money into the system, nothing happens until that money is spent or lent – and passes from one hand to another or one business to another. The speed at which this money passes between parties is called the velocity of money.

With the job market still very sluggish, consumers aren’t spending much money these days, and businesses are still reluctant to spend money to make investments in their business. With the present velocity at low levels, inflation remains subdued and that’s good for home loan rates. That’s because rates are tied to Mortgage Bonds and inflation is the archenemy of Bonds, so low inflation is good for Bonds and rates. However, once velocity increases, the excess money in the system will cause inflation – which is bad for rates, since even the slightest scent of inflation can cause home loan rates to worsen.

While we certainly want to see better economic recovery news in the near future, we have to remember that there’s an inverse relationship between good economic news and Bonds and home loan rates. Weak economic news normally causes money to flow out of Stocks and into Bonds, which helps Bonds and home loan rates improve. Strong economic news, on the other hand, normally has the opposite result.

Currently, home loan rates are at a historically low level, but that situation won’t last forever. That means now is an ideal time to purchase a home or refinance before the velocity of money – and rates – change. If you or anyone you know would like to learn more about the current economic situation and how to take advantage of historically low home loan rates, then please contact Lee Barroll at 615-938-7504 or 615-243-1301. Email at lee.barroll@fcmhomeloans.com.

I saw this blog and it occurred to me this is one of the most overlooked plans we should have in our home.  Please follow the link above or click the blog itself to see the original at Home Alarm Monitoring.

Compliments of Home Alarm Monitoring

If you are interested in seeing what a refinance loan would look like as it relates to interest savings or would like to get pre-qualified for a home mortgage purchase loan please call Lee Barroll at 615-938-7504 or email lee.barroll@fcmhomeloans.com. 

A Commuter’s Education

You already know that your daily drive can make you aggravated, exasperated, and even potty-mouthed. But did you know it could make you smarter, too? A USC study found that drivers who cover an average of 12,000 miles a year will, over the course of three years, spend enough time in their cars to complete two full years of college. That could make commuting the single most important educational tool we have. Think of it as the U of YC: the University of Your Car. You can purchase discounted new and used audio books online, and your local library branch has shelves of audio books that you can borrow for free. Here are a few course offerings to consider:

Required courses.  Looking to refresh your memory regarding the causes of World War6 I?  Or perhaps you want to listen to Harold Bloom read The Best Poems of the English Language. Whatever class you’re thinking of taking, there’s an audio book covering the topic, from actual college lectures to best-selling non-fiction.

Get a degree in business.  All of the best business titles come out instantly in audio books.  Learn to make friends and influence people, give yourself a total money makeover, or start thinking like a billionaire-all before you get to the office in the morning.

Stay informed.  One of the difficulties with radio is that it’s easy to miss your favorite show.  With the advent of Podcasting, this will soon become a thing of the past. Podcasting enables listeners to download audio broadcasts, from select media outlets or individuals, and listen when it’s convenient.  Rather like TiVo® for radio, you can even “subscribe” so that new content is automatically accessed.  Another radio resource is www.audible.com.  This site sells popular radio show content as well as daily audio versions of the New York Times and the Wall Street Journal.  (An MP3 player is required.)

Aprende un nuevo idioma.  Remember those old language tapes?  Well, they still make those, and they’re better now.  I promise.  And what better place to work on that accent of yours than alone in the car?  As for the people in the next car, the ones watching you talk to yourself, they can think what they want.

Enroll in comedy school.  Since you’re the dean of admissions and you make the reading (or, rather “listening”) list for this degree, you can study what you want.  Why not check out recordings by today’s top comedians? Margaret Cho, Bill Cosby, Richard Jenni-they all put out CDs and audiotapes. Maybe they’ll inspire you to work on your own routine.

Your commute isn’t getting any shorter, but at least now you can get smarter while you’re getting where you need to go. And the next time traffic is stopped dead on the freeway, look on the bright side: you can take notes.

If you are looking to refininace you exsisiting mortgage or pre-qualify for a new mortgage please call Lee Barroll at 615-938-7504 or email  leebarroll@fcmhomeloans.com.

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Why should you look at refinancing your 30 year mortgage to a 20 year or 15 year term?

Because the savings in interest is great. And with today’s rates the difference between the 20 year and your 30 year payment is marginal. You bought your home a little over 2 years ago for $220,000.000. At the time you took out a 30 year fixed rate mortgage for $180,000.00 at an interest rate of 5.875%. Your principal and interest payment is $1064.77. You have a balance of $175,132.00 on your home which is valued at $220,000.00. If you pay it off as scheduled you will pay back a total of $355,633.18.

Here are 2 examples:

If you were to refinance on a 20 year term at an interest rate of 4.375% you would have a principal and interest payment of $1117.27, you would take 7 years off the term of your mortgage, you would pay back a total of $268,440.80 with an interest savings of $87,488.38.

If you were to refinance on a 15 year term at an interest rate of 3.875% you would have a principal and interest payment of $1309.19, you would take 12 years off the term of your mortgage, you would pay back a total of $235,654.20 with an interest savings of $119,978.98. Now that is a lot of money.The examples above are for educational purposes only. This is not and offer of credit. Credit Approval and underwriting apply. However should you be thinking of reducing the term on you mortgage First Community Mortgage and Lee Barroll can assist you in doing just that. Please call Lee Barroll @ 615-938-7504 or email lee.barroll@fcmhomeloans.com for more information and a proposal customized to your specific needs.

The median home price, the point at which half of all homes are sold for more than and half are sold for less, increased all around the U.S. in March.

In the Northeast, the median price rose to $232, 900 from $230,200 in February but was down 3.0% over last year’s price.

The median price in the Midwest climbed to $126,100 in March from $122,000. The new price is down 7.1% from the year before.

In the South, the price rose to $138,000 from $134,000 in February and fell 6.6% in a year-over-year comparison. The median price in the West increase to $192,100 from $190,000. It dropped 11.2%, however, from the previous year.

For more information regarding a Mortgage in Brentwood, TN call Lee Barroll at 615-243-1301 or email lee.barroll@fcmhomeloans.com.