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Here is some information that I have found helpful.  Talk to a mortgage broker for advice.  If you need a no obligation referral, let me know.  I work with the best in the business.

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Albuquerque is America's 50 Hottest Cities

CLEVELAND, OHIO – January 25, 2006 - Expansion Management, a business magazine for executives of companies actively looking for a place to expand or relocate their facilities within the next one to three years, has released its 8th annual "America's 50 Hottest Cities" ranking, to be published in its upcoming January-February 2006 issue.   Albuquerque grabbed the 21st ranking in this poll of site location consultants.

Rio Rancho - the bright future of Albuquerque

Rio Rancho is conveniently located in the heart of New Mexico’s scenic Land of Enchantment.  As a suburb of Albuquerque, Rio Rancho is home to one of Intel's largest manufacturing facilities and is the areas fastest growing community.  In January 2006, Rio Rancho approved their plans to develop a civic center which will include an 8,000 seat arena, the states 3rd largest university campus, and city offices.  Click here for a copy of the City Center Plan.

4th Smartest City?: When it comes of graduate degrees, the Albuquerque/Rio Rancho metro area has them in spades. According to the U.S. Census Bureau, 17 percent of metro area residents here hold graduate degrees, fourth highest in the country (among cities of 250,000 or higher). Only Washington, D.C., Seattle, and San Francisco have higher percentages.

#7 For Business: Inc Magazine ranked the Albuquerque/Rio Rancho metro area the 7th best medium city in the country for doing business. The magazine, geared to entrepreneurs, ranked 250 metro areas and was especially attracted to Albuquerque's low cost of living.

1 And Only: New Mexico was the only state in the US that instituted a significant tax cut in 2003.

New Mexico is ranked first in the nation - and in the world - in total computing power with two of the world's three fastest computers. In fact, New Mexico alone has almost as much super- computing capabilities as all of Japan.

Albuquerque/Rio Rancho fit and trim: The Albuquerque/Rio Rancho metro area, blessed with four seasons and sunny skies, was named the 12th fittest place to live in 2004 according to Men's Fitness magazine. The mile-high metro area placed highest in the exercise/sports participation category, in particular hiking, camping, biking, and swimming.

New Mexico gets A's in employment, infrastructure: The Corporation for Enterprise Development gave the state of New Mexico the grade of A for both employment (the state's 1.8 percent job growth was one of the highest in the nation), and infrastructure resources.
 

10 Mistakes to Avoid in Real Estate


Those who don't learn from history are doomed to repeat it, the old proverb goes, so as the real estate market marks time before firing up again in the spring, it's a good time to mull over some of the more common things "not-to-do" to clear a trail for a happy home sale or purchase.

Here are my picks for 10 mistakes to avoid in 2006:

Not understanding the length of the buying/selling process
You know what happens when you make decisions based on optimism, time-on-the-market averages and generous promises from agents -- ye old Murphy's law kicks in. The home-selling process is often more extensive than you think, from the early planning stages to protracted negotiations to oft-delayed closings. Sellers can take months before they formally accept a buyer's offer. Financing can get held up, buyers have a tough time selling their old house, rough edges discovered in the final walk-through must be smoothed, etc. Give yourself a couple extra months to complete the deal.

Exposing your hand
Never let love for a house cloud your vision. Try to contain your enthusiasm. Otherwise, the sellers and (or) their agent will know they've hooked a live one and assume you may forgive certain flaws because you know the place is right for you. You can scream "yes!" when you get back out in your car.

Skipping the loan preapproval step
For buyers, getting pre-approved for a mortgage gives you a clear idea of how much you can safely borrow, plus it addresses credit-rating issues and kick-starts other financial paperwork. What's more, it identifies you as a serious buyer.  Most sellers require a pre-approval from your lender when submitting a purchase agreement.

Assuming the appraisal equals actual value
In theory, appraisals are objective estimates of value. But several different appraisals can yield several different numbers. For example, an appraisal that's been done for a possible refinance may have been slightly inflated to encourage that refinance. So sellers, before you put your home on the market, have an agent do a comparative market analysis to better indicate the home's worth. And buyers get similar "comps" from your agent. But realize the true value of a house is what someone is willing to pay for it.

Timing the bubble "burst"
Thousands of apprehensive sellers and buyers have been playing this game since the late 1990s, trying to time their sale to either beat the "pop" and gain optimal profits, or to swoop in and pluck up cheap property after a burst. In almost all sections of the country, the bubble remains "intact". For the most part, real estate bubbles don't pop, they just slowly deflate and the market levels off then surges again in the near future. Always take the approach that real estate is a long-term investment.

Hiring the wrong agent
Buyers and sellers should interview several agents, small and large. Get references and success stories. You may not benefit by opting for an agency's top-volume seller. That top-producing agent may have listed 40 homes last year and sold 30, but another agent may have listed 15 and sold 14. Opting for a friend or family member who is an agent doesn't assure you of results either. It could cause a rift. And choosing the agent who suggests the highest listing price is not a recipe for success either -- nor is opting for the agent who charges the lowest commission. Remember the SEED qualities in an agent: smart, empathic, experienced and dedicated will usually get the job done right.

Missing the big picture
Opting for a dream house that will otherwise create negative quality-of-life challenges such as longer commutes, distant schools, limited access to services, higher taxes, more stringent deed restrictions, stricter homeowner associations and other chronic headache-makers can cause buyers to question their decisions after a few months. Make sure that your dream house is grounded in reality.

Not knowing what you're signing
The sales contract is a legally binding document. Review it as if your legal well-being is at stake. It should address all your concerns and the concerns of the other party, such as who will pay what for closing costs and repair expenses. A poorly written or incomplete contract can cost you lots of time, money and emotional energy and tie up your deal for weeks or months. If there have been any verbal commitments, they should be put in writing. If you're not using an attorney, make sure your agent is proactive in the construction and interpretation of the contract before you sign it or make concessions.

Poor timing
How many stories have you heard about people drowning under the weight of two mortgages because they committed to a new house before selling their old one? The most important transaction in the "buying-one-and-selling-one scenario" is the sale. Sometimes, you have little choice in the matter, but when you do, secure the sale of the old house before signing on the dotted line for the new one. Sure, you hate to miss out on that rare find and you might have to find an interim rental, but that's better than spending time in financial limbo and biting your fingernails to the quick.

Not completing your due diligence with a criminal search
In many states, agents are not obliged to tell you if there is a sex offender or other unsavory resident in a neighborhood you're eyeing unless you ask. Do so. They tell you to do your own research. Do so. Check with your area law-enforcement agency about how to access sex-offender lists and other criminal data bases for this crucial information.

Reprinted from Bankrate.com

Mortgage $aver

The MFA's Mortgage$aver first-time buyers program offers home loans well below conventional rates and rebates that can be applied to pay closing costs.  This program is available to individuals or families, who during the past three consecutive years have not lived in any home in which they have had ownership. 

Many loan types are available under the Mortgage$aver program.  These include FHA, VA, and loans to buyers of homes located on Native American trust lands. Mortgage$aver loans are 30-year fixed-rate loans available at one of two interest rates: one well below the conventional and one just about even with the conventional market rate. Buyers choosing the higher rate get credit toward closing expenses up to 3.5% of the principal loan amount.  This 3.5% rebate can help defray down payment, closing costs, and "prepaid" escrow expenses.  It can even be used to fund temporary interest-rate reduction, or to reduce the principal loan balance.  Funds are subject to availability and allocated on a first-come, first-served basis.

The lower interest rate under Mortgage$aver means lower monthly mortgage payments. Because the program saves you money on your mortgage payment, you may qualify for a higher loan amount.  Mortgage$aver Plus still provides a good rate while at the same time reducing the need for cash.

Go to the MFA website for more information on Mortage$aver

80-20 mortgages: no money down without PMI

As home prices continue to climb, borrowers increasingly turn to 100-percent financing, and especially home loans that sidestep the need for mortgage insurance.  One such loan is known as the 80-20 mortgage. The home buyer takes out two loans -- the first for 80 percent of the purchase price, and the second for 20 percent of the home's price. The borrower is expected to come up with the closing costs.

Getting off the rent treadmill
These mortgages are targeted at people who feel stuck on the rent treadmill. They can afford monthly rent that costs roughly the same as a house payment, but after they pay their monthly bills, they can't save much money toward that down payment.

Plenty of mortgage programs allow borrowers to buy houses with little or no money down, but they usually require private mortgage insurance, or PMI. Mortgage insurance protects the lender from the costs of foreclosing on a house when the borrower falls too far behind on the loan payments. The lender benefits, but the borrower pays. Generally, mortgage insurance is required when the loan amount is for more than 80 percent of the home's price.

The way to avoid paying mortgage insurance is by getting a "piggyback loan" -- a second mortgage to back up the first mortgage. The first and main mortgage is for 80 percent of the home's price. The piggyback loan is for 20 percent of the home's price, minus the down payment, if any. If you see mention of an 80-15-5 loan, it means that the borrower got a main mortgage of 80 percent of a home's purchase price, a piggyback loan for 15 percent, and made a 5-percent down payment. Myriad combinations, such as 80-10-10, are possible. The 80-20 uses a piggyback loan without a down payment.

Second loan, higher rate
Except in unusual cases, the interest rate on the piggyback loan is higher than the rate on the first mortgage. But the combined payment usually costs less than a loan of greater than 80 percent of the home's value, plus mortgage insurance. This is especially true if the homeowner itemizes deductions on federal income tax, because mortgage interest is deductible but mortgage insurance is not.

Pros and cons
The 80-20 loans have their pros and cons, says Vijay Lala, vice president of product development at Countrywide. "The pros are that you can get into a home with almost no money down," he says. "You just have to have your closing costs, and you can get your payment as low as possible with the interest-only feature."

The main drawback is a biggie. If the house loses value -- a possibility in overheated markets where these loans might be especially tempting -- the owner ends up owing more than the house is worth. That becomes a problem if the owner needs to sell the house or wants to refinance the loan. In such a case, the owner has to come up with cash to repay the loan in full.

reprinted from Bankrate.com

Patty Burns - (505) 417-9955 - PattySellsABQ@aol.com - Feedback