Another Client Shares Her Experience With the Stuart Epstein Team

We are always so humbled when notes like these come in...

"We personally wanted to write a letter to show how much appreciation we have for Stuart, and the team he has working for him. Stuart, Jen, and Bob have been nothing but wonderful to deal with. It was almost as if this was their own property they were purchasing and did everything possible to get it done for me. I strongly feel that if I would have dealt with another company that I would not have received the same service. Each and every one of them took personal time to make sure my loan happened. I never once felt that I was bothering them. Every question I had was answered right away. I know I emailed Jen 50 times and every time she answered me and was very pleasant to work with.  There is no doubt that anytime I have a potential customer I will refer them to this wonderful group of people. I can’t thank them enough for everything they did for me. Thank you so much!

Sincerely,

Ashley "

Refinance/Purchase Opportunities Could Outshine Black Friday Deals

There seems to be an emerging emphasis on shopping that has taken the activity to new extremes, almost giving it the feel of a competition. People are constantly attempting to showcase their knack for the biggest and best sales. Never is this more evident than the phenomenon that has become of Black Friday and Cyber Monday.

However, a new study has emerged that suggests this new generation of extreme shoppers don’t apply the same diehard tactics to everything they buy. The people who camp outside in front of shops for days, vulture coupons as if they were winning lotto tickets, and self-induce carpool tunnel syndrome scavenging the web, apparently may be the same people being referred to as the least savvy homebuyers.

A recent poll taken of Black Friday and Cyber Monday shoppers reported that nine out of every ten people cited the appeal of competitive specials and sales as reason for partaking. That same figure of people reported to have compared similar products between brands and stores for pricing prior to purchasing an item. It also suggested that an overwhelming majority of shoppers who turned out for the deals were low to medium income earners.

These people may do staggeringly less research and comparison prior to purchasing a
home.

This poll comes on the heels of an unrelated report on mortgage purchasing by Fannie Mae Chief Economist Doug Duncan, who reported that fewer people shop around prior to obtaining a mortgage and it typically costs them thousands of dollars in closing costs and interest rates.

"Homeowners who don't obtain multiple mortgage offers or carefully compare rates are essentially leaving money on the table, particularly given today's unprecedentedly low interest rates," said Duncan. "Although a home purchase is the largest financial obligation most people will ever make, many borrowers do not fully understand their mortgage products and costs. As a result, some homeowners in this position may find themselves with unsustainable payments down the road."
The report compared the due diligence between classes of income earners, and revealed that low to medium income earners performed 20% less research prior to obtaining a mortgage than medium to high income earners. An additional 43% of the lower income earners also reported not understanding their mortgage rate. Another 10% of the lower income earners reported paying more than expected in closing costs than higher income earners.

While mortgage rates and contracts are naturally more complicated than television discounts and buy-one-get-one sales, they can be easily explained by professionals probably in less time than it takes to wait in the lines at the mall during Black Friday sales.

The deals afforded by current record low mortgage rates are also enough to have even the stiffest of extreme shoppers excited. So the next time you plan on camping out overnight in front of the local Best Buy, maybe consider taking the opportunity to call a few local mortgage professionals and ask about current refinance and purchasing opportunities while you wait. You just may find that you’ve been missing out on deals that will save you way more than Black Friday ever could.

A Client Shares His Experience With the Stuart Epstein Team

My experience with Carrollton Bank regarding my mortgage was more than just professional; it was exceptional. I have worked with larger financial institutions in the past with mortgage products, and you feel like a number in a queue rarely speaking with the same person twice. I even had a lender tried to rip me off. My experience with Stuart, Jen and Robert could not have been more different.

I was to close on my house by the end of June, and things fell through with the lender I was working with over a paperwork discrepancy. In a near panic that resulted in coffee being spilled on several of my documents when I arrived on their doorstep, Stuart and Jen took me in, and calmed me down. I explained the situation, and they assured me that things were doable. There may have even been ice cream cake, although I am not sure if that was for all new customers or if I was just at the right place at the right time! Once I was under their care things moved quickly, and they did what was needed to get the loan through under a very tight schedule in a very busy time period.

I cannot thank them enough for what they were able to do for me and in the time frame in which they did it. My new house was only possible because of their team, and I will certainly work with them in the future.

Thanks guys!
Matt Folley

Newest CDA Programs!

For June Homeownership Month:

• The Save-A-Home Loan Program (formerly the Homeward Bound Program) is offering reduced interest rates for short sales and non-DHCD-owned foreclosures for reservations made on or after 10:00 a.m. on May 31, 2012 through June 30, 2012.

In Non-Targeted Areas:
o The interest rate will be .75% below the regular Maryland Mortgage Program (MMP) non-targeted interest rate, with a floor of 3.25% (APR 4.082%).

In Targeted Areas:
o The interest rate will be 2.875% (APR 3.675%).

• $30 Million Targeted Areas Initiative:

o Interest rate of 2.875% (APR 3.675%)
o Effective for loans reserved on or after 10:00 a.m. on May 31, 2012 and continuing until the allocated funds have been expended.
o Additional incentives and resources offered by the following partners can be combined with MMP loans and benefits to maximize savings for homebuyers in Baltimore City. The partnership of State and City allows for the best homeownership initiative and lowest interest rates in the history of the Maryland Mortgage Program (MMP).
>> Baltimore City Housing Authority has a Vacants-to-Value initiative, which can include significant downpayment assistance. Click here to go to the Baltimore City website for more information.
Healthy Neighborhoods, Inc. (HNI) helps strong but undervalued neighborhoods increase home values, market their communities, create high standards for property improvement and build strong connections among neighbors. HNI offers two major home buying programs.
>> The Healthy Neighborhoods Loan Program offers low-interest loans to acquire/rehab, refinance/rehab, or make home improvements to residential property. Incentives include a 3% down payment, loan amounts up to 110% of after-rehab value, no private mortgage insurance, and free design advice.
>> The Neighborhood Stabilization Program offers:

1) $6,000 in closing cost assistance when purchasing a home that is fully renovated by an approved developer partners; and
2) $25,000 to purchase a foreclosed, abandoned or short-sale property in a targeted neighborhood.

More information on Healthy Neighborhoods, Inc., can be found on www.healthyneighborhoods.org.
Live Baltimore is the most comprehensive organization focused on Baltimore City Living. It aims to market the City of Baltimore as a great place to live and grow the city's population. Live Baltimore offers numerous education and marketing outreach to the public and details can be found on the organization’s website, www.livebaltimore.com .

You do not need to be a first-time homebuyer to purchase in Targeted Areas.
DON’T FORGET OUR DOWNPAYMENT AND SETTLEMENT EXPENSE PROGRAM! For more information, contact us. Partner Match Programs can qualify for these incentives, too!

Spring Housing Market Update for Baltimore Metropolitan Area

Written by Stuart Epstein

It’s hard to believe that we are into May already!  I will say that I am happy to report that the first four months of 2012 have been one of the busiest that we have seen in a long time in the Baltimore area home buying market.  We are up by 9% over 2011 for purchase mortgages, and an average purchase price of $200,000, compared to $187,000 for the same period last year.  Many people are starting to realize that home prices may have hit their low point and interest rates could not be more attractive than right now.  For example, the average rate on an FHA 30-year fixed rate loan right now is 3.5% and a Conventional 30-year fixed at 3.875%.  Our refinances have more than doubled for the first four months of 2012 over 2011!  This is mainly due to rates being at an all time low.  Many are reducing the term from 30 years down to 15.

The majority of the new applications are 1st time homebuyers, who happen to be in the best position right now, given they have no house to sell as a contingency for buying.  They also have the benefit of receiving 1st time homebuyer grants and incentives, such as the CDA loan with DSELP (Maryland Mortgage Program) and the FHLB grant. 

We are also seeing more “step-up” buyers, those who are selling their current home and upgrading to a larger or superior home.  Since inventories of sought after homes on the market seem to be shrinking, some sellers are finding it easier to get contracts on their houses in a couple months.   Some areas are actually experiencing bidding wars again.

The mortgage qualifying and documentation standards have continued to get more and more restrictive, which can make for a stressful process when applying and taking out a loan these days. The good news is that qualified borrowers can still get a loan, and at historically low rates.  It just may be a bit more painful getting to settlement. 

I may sound like a broken record, but the key is having a good, reputable, local lender working for you to make the transaction as smooth as possible. 

If you own a home and have not refinanced in the last year, make sure you check with your lender to see if it makes sense for you to refinance.  There are several programs available to help: the FHA Streamline Refinance, the VA IRRRL Refinance and the Fannie Mae DU Refi Plus programs all have flexible guidelines to help those who may not have the equity normally required to get a lower rate.  If you are not sure if it makes sense for you to refinance, or if you are not sure if you can, don’t hesitate to call (410.491.0200) or email us to do a free analysis.

Enjoy the beautiful spring weather!

Carrollton Bank Has Merged With Bay Bank

Big news came out yesterday! Carrollton Bank has come into a merger agreement with Bay Bank. This will make us one of the most well capitalized community banks around. We are very excited about this change here at Carrollton. It will enable us to increase our presence and provide even better programs and services to our clients.

If you would like more information about the merger, you can view the press release here.

New FHA Changes Effective April 9th, 2012 – Is it a Game Changer?

Have you heard that there are changes coming on FHA mortgages, but unsure how they will affect you or your clients?  Here is a simple breakdown of the changes:

Up-front Premium – 30 year mortgage

• Existing Up-Front MI premium (financed into the loan)  - 1% of loan amount
• New Up-Front MI Premium effective April 9th  - 1.75% of loan amount

Monthly MI – 30 year mortgage

• Existing Monthly MI rate      - 1.15% assessed annually
• New Monthly MI rate effective April 9th    - 1.25% assessed annually

What does this mean?  Let’s use an example to demonstrate the new FHA change:
On a $200,000 home purchase, under the existing structure, the payment (excluding property tax and insurance) on a 30 year fixed rate loan with an interest rate of 3.75% would be $1088/month.  Under the new plan effective April 9th, the payment will go to $1110/month. 
So on a $200,000 purchase; it will cost you $22 more a month for an FHA mortgage AFTER April 9th. 
The good news is the required down payment will still be the same.  In this example, that would be $7000 required down.  Don’t forget that if you are a 1st time homebuyer, you may qualify for help with down payment, like the FHLB or the Maryland Mortgage Program, just to name a couple.
There are different FHA mortgage insurance rates when the down payment is greater than 5%, and also for 15 year mortgages.  If you would like a breakdown of these rates and how they may affect financing, don’t hesitate to ask the Stuart Epstein team to provide you with the numbers.
Also, if you have 5% to put down, you may want to ask us to help you compare the costs and benefits of Conventional financing as an alternative to FHA.  Depending on credit and other factors, you may save a ton on money by knowing ALL of your options!
Lastly, stay tuned for exciting refinancing benefits coming in June for those with existing FHA mortgages…
Happy House Hunting!

Please contact the Stuart Epstein team if you have any questions! Call us 410.491.0200 or email me directly at sepstein@carrolltonbank.com.

The FHLB Grant is Back!

Carrollton Mortgage Services is proud to be one of very few lenders in the State to offer this 1st Time Buyer Grant; Buyers may be eligible for $5000 towards their closing costs and down payment on a home!  FHLB is a forgivable grant (20% each year up to 5 years total) and is issued at settlement toward the down payment. The $5000 grant is per household, and is allowed to go towards a buyer’s FHA 3.5% minimum requirement for down payment.

Borrowers must meet just a few requirements to qualify for the wonderful grant and it is on a first-come, first-serve basis.

Carrollton helped over 135 1st time buyers just last year alone achieve the dream of homeownership with the FHLB Grant.  We also have several other down payment and closing cost assistance programs to offer that can be used in conjunction with FHLB or independently as well.

If you or anyone you know might be able to benefit from these funds, please don’t hesitate to call on us to help! Email at sepstein@carrolltonbank.com or call 410.491.0200.

One of Stuart Epstein's Fans Tells Her Success Story

Ordinarily, waiting at the MVA would be a frustrating affair. Today however, is different. I am content! I realize they are calling for G62; my ticket says G105, but I'm beaming. This is the day I change my license to my new permanent address, my first house.

Six months ago I would have told you that I was not ready for the commitment of buying a home. Or that I couldn't afford a mortgage, student loans, and a healthy social life. However, last September I attended a course presented by LiveBaltimore where I learned about the various incentives available to home-buyers in Baltimore City.

In October I approached Stuart Epstein and the Carrollton Bank team (Bob Foster and Jennifer Grosholz) with a challenge. Through my research and Stuart's assistance I hoped to earn $47,000 worth of grants, incentives, and principal diminishing loans to assist in the purchase of a new home. I also needed to close before December 1.

Stuart was excited by the challenge and the complexity of the paperwork involved; nor did it deter Bob or Jennifer who were extremely well organized, focused and served as an excellent resource.

Stuart and his team accomplished a miraculous feat by processing grants and loans from several different entities. They placed a rush on the inspection and kept me focused as the December 1 deadline rapidly approached.

It is with significant evidence of their hard work that I recommend Stuart Epstein and his team to you. Stuart is incredibly informed and up to date on all of the programs and incentives offered by the City of Baltimore, and even more so after working with me. They are responsive, professional, and personalize each service to the client.  I would not hesitate in working with them again and highly recommend their service.

I realize, still waiting for my number to be called at the MVA, that this would never have been my city, my home, without their support and hard work.

Thank you Stuart, Bob, and Jennifer!

- Charlotte Jones RN, BSN