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Frequently Asked Questions (FAQ)

Why Was I Referred to You?

 A.    Whether you were referred to me through a Realtor, Financial Advisor, friend, colleague or anybody else, then it is likely they had a good experience with my services.  I pride myself on Customer Service and being able to provide excellent advice for my clients and business partners.  I want to remain in business for a long time, so it is necessary that I take care of my clients and business partners.  How else may I expect to receive referrals like you?   Why



Do I Need A Realtor? 

A.    You may have heard me say it’s important to have a Team of Experts.  Well, a very good Realtor can be one of those Experts.  They can find you a great property or protect you from making a very bad deal.  A bad deal can be paying too much for a property, protection from lawsuits and providing essential information in buying a home.  Remember, the Seller is paying the Commission, NOT the Buyer!!!  The Buyers Agent is under an obligation (legally and ethically) to the Buyer.  Regardless, if you’re looking to have an Agent for Selling or Buying an home, it is necessary to have a Professional, who knows the Market and protect you from Legal issues during a transaction (or possibly afterwards).  This is worth more than it’s weight in gold! 



Why And How Do Interest Rates Change?

 A.    There can be an entire book written on this very topic.  People are amazed how interest rates change because they see it printed one moment, then find it has already changed another moment.  Interest Rates can change multiple times during the day.  It mostly fluctuates due to the financial markets.  A good indicator for long-term rates is the Mortgage Backed Securities (bonds).  Check out Shopping Around for some further explanations and view the MMG Weekly on the Home Page to view the upcoming economic news that will impact interest rates for the week. 

 

What Is An Pre-Approval? 

 A.    It is the process to determine how much home you can afford.  This is essential before meeting with a Realtor.  The first question from a Realtor will be “are you pre-approved”?  Home buying is an emotional experience, and there’s nothing like discovering that you cannot afford something because you will most likely stop your home search immediately.  It is better to take steps to buy what you can afford now, and then possibly something else later (after building some equity). 



How Do I Become Pre-Approved?                                                                                                                                    
  A.     I'm glad you asked, click here



What Are Points? 

A.     Points are the fees associated with lowering your interest rate, which is typically 1% of the loan amount.  You will find these fees under Loan Origination fees or Loan Discount fees on your Good Faith Estimate (GFE).  Also, you may see No Points or No Cost loans.  These are loans that charge an higher interest rate to cover your Points (No Points) or little higher rate to cover your Points and Non-recurring Closing Costs (No Cost). 



When Should I Consider Refinancing?

A.    Well, the old rules of 1-2% better in the interest rate don’t necessarily apply today.  This was an “old” rule of thumb because home prices weren’t as high then, as they are today.  For example, an average home in the 1960s was about $16,000 and the interest rate was between 4-6%.  Let’s say the rate was 5% and the loan amount was $12,800, which will have a monthly amortizing payment of $69.  For every .125% difference in rate is only $1 difference in monthly payment.  Now, the national average home is around $200,000 and interest rates are around 6%; so let’s figure the loan amount to be $160,000, which will bring the monthly amortizing payment to $959.  This will bring every .125% difference in rate to $13 difference in monthly payment.  Point being, The Total Cost of the Loan should be the Primary Factor to determining a Rate and Term Refinance (refinancing for the better interest rate without taking any money out of the equity).  Also, you may want to take money out of the equity for various reasons.  A Mortgage Planner is the best source to help you to determine if this is the best thing to do for your situation.  
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