September 5- Texas Memorial Museum
September 6- Free Day of Yoga
September 7- Free Salsa Lessons at Speakeasy
September 8- Movies In The Park
September 9- Unplugged at The Grove
September 10- Austin Ghost Tour
UT Football
09/04/10 at Rice Houston, Texas 2:30 pm CT
09/11/10 vs. Wyoming Austin, Texas 6:00 pm CT
REBOUND OR DOUBLE DIP? DOTZOUR’S 2011 FORECAST
COLLEGE STATION (Mays Business School) – As much of the nation ponders whether the country is in rebound mode or headed for a “double-dip” recession, Real Estate Center Chief Economist Dr. Mark Dotzour sees definite signs of hope for the economy.
“There are signals that the economy is trying to turn the corner,” Dotzour said. “Consumer confidence has increased from a year ago, and consumer spending has resumed its relentless upward trajectory.”
He says the most important positive indicator is that corporate profits have rebounded.
“In a free-market, capitalistic system like America, profit growth is the key indicator,” he said. “When profits are growing, companies hire employees. When profits flatten, they stop hiring. When profits fall, they start to fire people, and they keep on firing people until profits start to increase again. Clearly, most businesses have right-sized their firms sufficiently to regain profitability.”
So why aren’t they hiring people?
“The answer is uncertainty: uncertainty of capital gains and income tax rates; uncertainty about the cost of health care and the possible increase in energy costs due to ‘cap and trade.’ The prospect of new and increased government regulation makes it hard for business to see clearly into the future,” he contends.
Dotzour points out that businesses can buy insurance against risk, but there is only one way to “insure” against uncertainty–and that is to hoard cash.
“There is now nearly $3 trillion sitting in cash on business balance sheets,” he said. “They have much more capital then the Federal Reserve, the FDIC, Fannie Mae and Freddie Mac combined.”
To read more, visit the Mays Business School website.
REBOUND OR DOUBLE DIP? DOTZOUR’S 2011 FORECAST
COLLEGE STATION (Mays Business School) – As much of the nation ponders whether the country is in rebound mode or headed for a “double-dip” recession, Real Estate Center Chief Economist Dr. Mark Dotzour sees definite signs of hope for the economy.
“There are signals that the economy is trying to turn the corner,” Dotzour said. “Consumer confidence has increased from a year ago, and consumer spending has resumed its relentless upward trajectory.”
He says the most important positive indicator is that corporate profits have rebounded.
“In a free-market, capitalistic system like America, profit growth is the key indicator,” he said. “When profits are growing, companies hire employees. When profits flatten, they stop hiring. When profits fall, they start to fire people, and they keep on firing people until profits start to increase again. Clearly, most businesses have right-sized their firms sufficiently to regain profitability.”
So why aren’t they hiring people?
“The answer is uncertainty: uncertainty of capital gains and income tax rates; uncertainty about the cost of health care and the possible increase in energy costs due to ‘cap and trade.’ The prospect of new and increased government regulation makes it hard for business to see clearly into the future,” he contends.
Dotzour points out that businesses can buy insurance against risk, but there is only one way to “insure” against uncertainty–and that is to hoard cash.
“There is now nearly $3 trillion sitting in cash on business balance sheets,” he said. “They have much more capital then the Federal Reserve, the FDIC, Fannie Mae and Freddie Mac combined.”
To read more, visit the Mays Business School website.
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From Application to Closing
Once you’ve submitted your mortgage application and received a decision, the steps leading up to your closing will be unfamiliar. We want you to know what to expect. Prior to closing on your new home, you’ll need an appraisal, a home inspection, home insurance and title insurance.
PreApproval
Upon application credit check, and submission of your supporting documentation, your lender will have discussed what you can qualify for and have a preliminary plan for financing. It is preliminary because you may find a home at a different price or the rates may change. Your lender will be ready to issue a Conditional Approval letter upon the location of a home on which you’d like to make an offer.
Finding A Home
At this point, you’ll go home searching based on our preliminary financing plan. Your Realtor may want basic information on the financing plan as the Purchase contract does require some of this info. Once you have a home you’ll provide the lender with a contract.
Your Option Period
Your contract will give you an Option Period to get additional information on the home and decide to continue with the purchase. This usually includes your inspections and time for the Realtors and Sellers to get you information such as the survey, restrictions, and other info.
Appraisal
Upon the completions of your Option Period and your decision to proceed with the purchase, the lender will order an appraisal from a professional appraiser to determine the value of your home. Most loan programs require an appraisal to make sure the sale of the property would provide enough funds to repay the mortgage balance. This protects the lender in case of default, and can also help you make sure you don’t overpay for the home. An appraiser will give a professional assessment of the property’s value based on a number of factors, including:
Home Inspection
A professional home inspection can help put your mind at ease by identifying any potential issues with the home. In some cases, a home inspection may be required as part of your loan approval process. A home inspector will give a professional assessment of the property’s physical condition and notify you of any existing or potential problems. At minimum, the inspection should cover all the home’s major systems and structural elements, including the foundation, electrical system, heating and cooling systems, insulation, roofing, plumbing and all exterior features.
You should make every effort to be present during the inspection, so you can see any problems first hand. Accompanying the inspector can make the inspection report easier to understand, and you may even get some valuable maintenance tips. Your Realtor can make suggestions on Inspectors.
Home Insurance
Home insurance will protect the investment you’ve made in your home. Your policy will compensate you for damage done to your home or its contents by natural hazards such as fire and wind and will protect you from liability if someone is injured on your property.
Before you close on your mortgage, you’ll be required to show proof that you have purchased home insurance. Your lender will probably require you to purchase a minimum amount of coverage, usually equal to your loan amount. You may, however, want to purchase a larger policy to make sure you’re protected from additional losses.
Title Insurance
There are two types of title insurance: one protects the lender and one protects the borrower.
Title insurance is purchase as protection from claims against your ownership of the property. Such claims may be made by undisclosed spouses, heirs of previous owners, creditors holding liens against previous owners or other parties.
Your lender will most likely require you to purchase a title policy, which will cover their interests in the property. It’s up to you to purchase a policy to protect your interest in the home. Your home mortgage consultant will be able to recommend a title insurance company who can provide additional information about the policies available in your area.
I found this and thought it might be good info.
What is title Insurance?
Title insurance is the application of insurance to hazards in real estate titles.
What is “Title”?
“Title” is the foundation of ownership of property. It means that you have a legal right to possess that property and to use it within the restrictions imposed by authorities or limitations on its use – superimposed on the basic right to possession by previous owners.
What is the difference between relying on an abstract and attorney’s opinion versus title insurance policy?
(a) An abstract is a compilation of written instruments affecting title to a property. An attorney’s opinion of ownership and state of title disclosed by the abstract. An abstract and attorney’s opinion do not disclose various defects in the title, such as fraud, forgery, defective deeds, incompetence of parties signing documents or clerical errors in the records. In fact, an abstract and attorney’s opinion may not uncover many of the title defects that can exist. Then, chance of recovery in the event of a title loss in this case depends entirely on the solvency of the attorney examining the title. The attorney’s liability is limited to errors and oversights that would not be made by a diligent attorney. The attorney is not liable for loss caused by hidden defects.
(b) A title insurance policy indemnifies the insured against monetary loss caused by defects in title not expected to in the policy.
Why should I protect the home I buy with title insurance?
Because without title insurance, you become a self-insurer. This is an inadvisable unless you are in a financial position to lose the money you have invested in your home without upsetting your financial condition in any way.
Are there different types of title insurance of title insurance policies?
There certainly are. First, there is the Owner’s Policy that the home purchaser needs for his or her protection. Then, there is the Mortgagee’s Policy, which protects only the mortgage/money lender. Most financial institutions lending mortgage money on a wide scale insist upon Mortgagee Title Policies for their protection.
If the lend is getting a title policy, why do I as an owner need one?
The lender’s policy protects the lender’s interest only and does not provide protection to the owner.
Is title insurance as important as fire insurance?
Yes because your losses without title insurance can be greater than fire losses. If a house burns, the land is still there to rebuild. If title to the property fails, you have nothing. That is why owner’s title insurance is always written to cover value of the house and lot.
How does title insurance help protect my home?
It places the assets of a corporation behind the title to your home. If attacked, the title will be defended without cost to you and if the title, or any part of it, should be defective, you will be reimbursed up to the face amount of your policy, for any financial loss incurred.
How much does the title insurance cost and how long am I protected?
For the protection provided, the cost is modes. Whie the rates are graduated in Texas, a $100,000 owner policy costs $1,023.00 or about 1% of the cost of the property. Unlike other insurance with annual premiums, title insurance premiums are paid one time and protect youas long as you and your heirs own the property.
Why won’t the seller’s title policy protect me?
Their policy only relates the title as of the date of the policy, in other words, their date of purchase of the home. Since that date, the insured could have conveyed the property or given rights to others in the property. Once the homeowner signs a Warranty Deed, the policy converts to a Warrantor’s Policy and follows the owner, not the property.
| What does a percent in rate cost you? | ||||||||||
| 30 Year Fixed Rate Mortgage | ||||||||||
| Mortgage Amt. | Interest Rates / Monthly Payment | |||||||||
| 5% | 6% | 7% | 8% | 9% | ||||||
| $100,000 | $536.82 | $599.55 | $665.30 | $733.76 | $804.62 | |||||
| $110,000 | $590.50 | $659.51 | $731.83 | $807.14 | $885.08 | |||||
| $120,000 | $644.19 | $719.46 | $798.36 | $880.52 | $965.55 | |||||
| $130,000 | $697.87 | $779.42 | $864.89 | $953.89 | $1,046.01 | |||||
| $140,000 | $751.55 | $839.37 | $931.42 | $1,027.27 | $1,126.47 | |||||
| $150,000 | $805.23 | $899.33 | $997.95 | $1,100.65 | $1,206.93 | |||||
| $160,000 | $858.91 | $959.28 | $1,064.48 | $1,174.02 | $1,287.40 | |||||
| $170,000 | $912.60 | $1,019.24 | $1,131.01 | $1,247.40 | $1,367.86 | |||||
| $180,000 | $966.28 | $1,079.19 | $1,197.54 | $1,320.78 | $1,448.32 | |||||
| $190,000 | $1,019.96 | $1,139.15 | $1,264.07 | $1,394.15 | $1,528.78 | |||||
| $200,000 | $1,073.64 | $1,199.10 | $1,330.60 | $1,467.53 | $1,609.25 | |||||
| $210,000 | $1,127.33 | $1,259.06 | $1,397.14 | $1,540.91 | $1,689.71 | |||||
| $220,000 | $1,181.01 | $1,319.01 | $1,463.67 | $1,614.28 | $1,770.17 | |||||
| $230,000 | $1,234.69 | $1,378.97 | $1,530.20 | $1,687.66 | $1,850.63 | |||||
| $240,000 | $1,288.37 | $1,438.92 | $1,596.73 | $1,761.03 | $1,931.09 | |||||
| $250,000 | $1,342.05 | $1,498.88 | $1,663.26 | $1,834.41 | $2,011.56 | |||||
| $300,000 | $1,610.46 | $1,798.65 | $1,995.91 | $2,201.29 | $2,413.87 | |||||
| $350,000 | $1,878.88 | $2,098.43 | $2,328.56 | $2,568.18 | $2,816.18 | |||||
| $400,000 | $2,147.29 | $2,398.20 | $2,661.21 | $2,935.06 | $3,218.49 | |||||
| $450,000 | $2,415.70 | $2,697.98 | $2,993.86 | $3,301.94 | $3,620.80 | |||||
This Wednesday 8/18/2010. Zilker Park, bring a picnic! Great music blend of Roy Orbison, Buddy Holly, with a little latin flair. ONe of my favorites. I think it starts about 7:30.
We floated the Guadalupe River out of Gruene last weekend–what fun! I hadn’t done that in 20 years. A Great way to spend a day and stay cool during the dog days of summer!
Austin Rankings 2009-2010
#1 Market for Young Adults (Austin Business Journal, March 2010)
Voted #1 for Healthiest Housing Market (Builder Magazine, October 2009)
#2 our t of the Nation’s Top 40 Economies (BuisnessWeek, September 2009)
One of the 10 Greenest Cities in the US (The Mother Nature Network, July 2009)
#1 City for Job Growth (US Bureau of Labor Statistics, June 2009)
One of 8 ideal places for foodies to retire (Where to Retire Magazine, June 2009)
#7 on the list of America’s Top Tech Centers (American Cities Business Journals, May 2009)
#1 City for a Fresh Start
America’s top retail City (Pitney Bowes Business Insight, May 2009)
#1 on the List of America’s Best Bargain Cities (Forbes.com, May 2009)
#15 top Art Destinations in the country (AmericanStyle Magazine, April 2009)
The Austin Film Festival is on the list of top 25 festivals worth the fee (MoveMaker Magazine, April 2009)
#1 for job growth potential (new Geography.com, April 2009)
#1 City in the US for Best Economic Recovery (Forbes, March 2010)
2nd Fastest growing Metropolitan area between 20007-8 (US Census Bureau, March 2009)
8th place on BEST Places for Business and Careers (Forbes.com, March 2009)
Austin-Bergstrom International Airport #3 best performing airport in North America in Airport Service Quality (Airport Council International, March 2009
Among America’s best Cities for the Outdoors (Forbes, February 2009) Com February 2009)
One of the top 10 Budget Travel Destinations for 2009 (Budget Travel Magazine, January 2009)
#4 in the Nation’s top economic performers, as ranked in the Best Performing Cities Index (the Milken Institute/Greenstreet Real Estate Partners, January 2009)
Featured in the lit of “15 Coolest North American Cities” (MSN Travel, January 2009)
2nd best City in America to Live (America’s Top 100 Places to Live for 2010)
#1 Best City for the Next Decade (Kiplinger’s Personal Finance Magazine)
3rd best City to move to (RelocateAmerica.com)
#1 of Best Large Cities/regions for Job Growth (Forbes Magazine)
If you are shopping around for a mortgage and can’t find your lender, or more specifically Loan Originator, on the internet then “red flags” should be popping up all over the place. If a Loan Originator is still in business today then they have probably been successful enough to hang on through the last 18 months of the most turbulent mortgage market we have ever seen. My challenge to you, is that as an informed consumer you demand to work with a professional Loan Originator, not someone who just gets by with being a good salesperson. A professional is concerned in doing what is in your interests, not theirs, and providing you with education, strategies and options that will give you the most benefits. That .125% in rate difference or $500 lower in closing that you are being “promised” versus getting good guidance and advice could very well cost you tens of thousands of dollars when you least expect it - I see it a lot, even today unfortunately. That is why “Googling” the Loan Originators you are considering working with and understanding what value they will offer you may just be the most important aspect of getting a mortgage today.
@ Houston, Texas 2:30 pm CT