With Labor Day right around the corner and being that this is Texas, what would a post be if it weren’t barbeque related?  Now, this entry will be short and sweet and have a clear and concise point. I will define the true meaning of barbeque for you, so there is never any confusion of what this perfect cooking style actually is.

First, and most importantly, barbequing must involve meat. You cannot barbeque a rack of zucchini or a head of broccoli. Just can’t be done. If you want to participate in the ritual of barbequing I would highly recommend it, but don’t get your greens near the grill or the smoker.

Second – and this is where many folks go wrong – don’t call it barbequing when you’re actually grilling. Grilling is the process of quickly cooking meat, fish, or veggies over high heat. So this would be your burgers, dogs, even a nice sirloin strip. Barbequing, however, is the “low and slow” method of creating perfection. Brisket, ribs, game, poultry, pulled pork – a few examples of meats you might want to toss in your smoker this weekend. If you are unsure of how to do it or you’re looking for a good recipe, visit http://www.smoker-cooking.com/ for more info on real-deal barbequing.

Everybody have a happy and safe Labor Day weekend and visit Encompass Lending Group for all your mortgage needs.

Homeowners who recently obtained Colorado mortgages to earn federal homebuyer tax credit may have been better off waiting.  According to a recent article by The Denver Post, those who rushed to get now-expired tax credits might have acted a little too soon. Despite the lowest interest rates in over 60 years, home sales and prices are still plummeting, and some experts say it would have been more beneficial for some to just wait before financing a Colorado home.

According to the National Association of Realtors, home re-sales dropped by 27.2% from June to July. A buyer looking to take out a $240,000 mortgage today at a 4.42 % interest rate could save $33,287 in interest costs over a 30 year span, which is four times the $8,000 credit used by a first-time homebuyer who financed at 5.21% earlier this year.

Many rushed to buy earlier this year before the knowledge was available that rates would drop, so timing is a huge factor of why many missed the savings. Studies in behavioral finance support the idea that people will go for an upfront payout rather than a spread over a long period that is worth more. Just look at lottery winners.

A recent Zillow.com survey also found that a third of homeowners believe housing prices in their area will continue to decline. If prices are headed lower, the rational thing to do is to wait for the better bargain. But such expectations can become self-reinforcing, especially to a desperate seller.

When the real-estate economy was booming, many people purchased homes with the notion that prices would continue to rise. Currently, it is just the opposite, with prices continuing to drop, many can’t buy unless they sell, and are not willing to do so for thousands less than their original purchase price.

While hindsight is always 20/20, it’s wise to speak with an experienced Colorado home loan expert who can explain the best times to buy, sell or re-finance. Buying and selling home are some of the most important decisions we make as adults so make sure you’ve done the research and aren’t just reacting to a perpetually volatile market.

Summertime in Texas is HOT. So naturally, backyard swimming pools are plentiful across the Lone Star State and they sure come in handy on those sweltering days when the A/C just won’t cut it. But when it comes time to buy a home, are swimming pools a value added aspect or just a money pit that homebuyers aren’t prepared for?

You’d think a swimming pool would greatly increase the value of a home. Why wouldn’t someone want one? Well, look at it like this – weekly chemical treatments, higher utility bills, constant pool skimming, and higher insurance rates. Your first inclination when buying a home with a swimming pool isn’t all the time and money you’ll have to put into it. It’s the hot summer days and the cold daiquiris. But don’t let the benefits of pool ownership keep you from remembering the inherited responsibilities. Pools are very time consuming and costly.

Before you plunge into a home with a swimming pool, do your due-diligence and make sure it’s feasible for you and your budget. Don’t get duped into thinking a pool is an easy investment. It takes a lot of sweat and liquid equity to maintain its value. Keep in mind – many DIY projects are possible for pool owners which will save you a bundle each season.

For information on the mortgage and housing industry in Texas, please contact us at ELGLoans.com

The housing market is expected to recover, but the “glory days” are over for good according to many real estate experts. Housing used to not only provide shelter but also fuel the economy by putting a little padding on homeowners’ investments.

Whether it was vacations, golfing, or going out to eat, the 20th century housing market was the good era for investing in Colorado and Texas real estate, which now some say, is gone for good.

“There is no iron law that real estate must appreciate,” said Stan Humphries, chief economist for the real estate site Zillow. “All those theories advanced during the boom about why housing is special — that more people are choosing to spend more on housing, that more people are moving to the coasts, that we were running out of usable land — didn’t hold up.”

The real estate crash interrupted the dreams of many who were buying Texas and Colorado homes to make cash. Those days of buying and a quick flip are now gone.

For the first half of the 20th century expectations were on a different path. Houses were viewed the way cars are now: as a consumer durable that the buyer eventually used up. Colorado and Texas were both hotbeds of real estate activity, although not the hardest hit by housing crisis.

Contrastingly, a lawyer in Phoenix paid $200,000 for his home originally, and saw a listing for his neighbors home five years later was priced at $500,000. He figured once his children were out of school he could sell the house, make a profit, and buy a boat to sail around the world.

Now his home is valued at the same price he paid for it originally. The future of real estate investments is not completely known, but one thing you don’t have you worry about is your Texas Mortgage needs because the fact is, you will always be taken care of by Encompass Lending Group.

Simple advice to make your move easier on the wallet.

Moving from one home to another is hard work. That’s why it can be pricey to hire pros. If you’ve got a strong back—and loyal family and friends—follow these key steps to get your possessions from place to place on your own.

Secure a Great Lender

When planning a purchase of a new home you should always secure your lender first in many cases they will be able to refer you to the best realtor, insurance provider, movers, etc. after all they want to gain your business and they have a better chance of doing that when they have a wider breadth of value.

Plan It Out
According to the American Moving & Storage Association, you should allow about 75 days to move. Being strategic about the relocation will help save your sanity.

Pack It In
You can buy boxes from a moving company, and dish packs are a good way to go with breakables. But you can collect old boxes from your local grocery store to save a few bucks. Newspapers make handy, free packing material, but avoid using them on anything that attracts ink, like white crockery.

Load It Up
Start by putting cardboard or plastic sheeting on the floor of the moving truck. Heavy items like appliances go in first. Pack the truck “tight,” stacking lighter-weight things on top of heavier ones, and fill in gaps with bagged pillows or bedding. Put odd-shaped items like lawn mowers and bikes at the end of the load.

Bring It Home
Label everything carefully as you box it up. Use bold permanent markers in different colors to color-code boxes by room. As you unpack, start with the things you’ll need immediately, room by room. You’ll want a way to eat, a place to sleep and clothes to wear while you continue unpacking. Non-essentials can wait.

Pay It Back
It’s good to express your gratitude to people who lend a hand, but it doesn’t have to cost you. Robyn Spizman, author and founder of The Giftionary, suggests acknowledging what each person did. If a friend watched your kids during the move, offer to return the favor with a coupon for babysitting. Or maybe just invite everyone to dinner once you’re all settled in your new home.

Encompass Lending Group in Katy, Texas are experts in providing a full service to their clients and have established relationships with reputable companies that will help your move go smoothly. Check out the Partners Page on their web site or give them a call at 888.963.3565.

Ever wonder if there was a way to pay less on your mortgage? According to a Wall Street Journal article, Mortgages: How to Pay Less, interest rates for 30-year fixed-rate mortgages are in free fall averaging around 4.4% for August. The best interest rates right now are coming from smaller banks and credit unions.

“I’ve found that my clients can get routinely better rates by heading to a more regional lender and forgoing the bigger lenders,” says Sean Satkus, a real-estate agent from Washington D.C.

Bank of America Corporation, Wells Fargo & Company, and JP Morgan Co. are the three largest banks offering an average interest rate of 4.66%. But some smaller banks out there are averaging 4.29%. Smaller banks typically offer more competitive rates than the larger corporations, but after the financial crisis there has been a widening discrepancy, which is only projected to widen in the future. All the banks have a share in a large market, so demand is no longer an issue.

Along with being able to offer lower rates, smaller banks have built-in pricing advantages some of the bigger banks do not. Compensation structures for loan officers are also a factor. Smaller lenders (like Encompass Lending Group for example) tend to pay on commission and will sometimes work on thinner margins to get higher volumes of loans out.

“The bigger banks can save money on origination by buying the loans from correspondent lenders later in the chain,” says Greg McBride, a senior analyst at Bankrate.com.

A 52 year old accountant was looking to purchase a two bedroom condo in Brooklyn, NY and originally went to Chase, Commerce bank and Wachovia. He was surprised to find that none would offer a rate for a $279,000 mortgage lower than 4.8%. That is when he decided to contact Luxury Mortgage, a Connecticut-based lender. He ended up with a rate of 4.625%.

When comparing mortgage interest rates, going to a smaller lender like Encompass can save you significant money, depending on your credit profile and some other factors. At Encompass Lending we always keep our Texas Mortgage Interest Rates as low as possible, so if you’re looking to refinance, we’re glad to walk you through the process.

1. If you’re going to miss a mortgage payment, contact your lender immediately and explain your situation. Remember, mortgage lenders are just people and many times they will understand your needs. Also, never call them after you miss your payment. Do it before you miss the payment.
2. Ask for forbearance or a delay of payments.
3. Ask for a repayment plan. So, ideally, you would set up a payment plan with your loaner and pay back, in segments, the amount that you owe on your mortgage.
4. Never ignore a lenders phone calls or attempts to contact you. Lenders want to help you through this issue of non-payment so avoiding them will only make the situation worse.
5. Get a loan modification plan. A loan modification plan allows the lender to adjust payments for the mortgage holder so they become more affordable.
6. Refinance your mortgage
7. A deed in lieu of foreclosure.

For more information on mortgages, insurance, or anything you need help with, give Encompass Lending Group a call today.

CNN reported this morning that more than 20% of US mortgage borrowers owe more than their homes are worth.  According to the real estate website Zillow.com, 21.5% of home loans are in the category of owing more than their house worth. It is a small improvement being down 1.8% from the previous quarter, but the numbers are still high.

Owing more than your home is worth is the second leading cause of foreclosures in the United States, right behind loss of income.

Much of the reason the percentage has dropped 1.8% from the previous quarter is due to homes being foreclosed. In areas such as Southern California and Orlando, Florida, some residents helped out by lowering home prices, but negative equity still grew to 31.5% nationwide.

Las Vegas is number one in the country in terms of mortgage borrowers owing more than their properties worth at 73.9%, with Phoenix, Arizona in close second at 66.8%.

Texas mortgage borrowing rates are still holding steady, much of it because residents of Texas have a firm grasp on fiscal responsibility. Encompass is happy to answer any mortgage or lending questions to help consumer make more informed decisions. While high-risk mortgages in Texas are becoming less common, it’s still always best to deal with a professional.

(Photo Credit: hip-consultant.co.uk)

The Texas Rangers seem like the only thing that’s going bankrupt in our great state these days. While the lagging baseball team will be auctioned off today by a U.S. Bankruptcy Judge, many Texans are wondering why and how Texas has dominated the recession.

One reason that has been mentioned is the housing market never hit rock bottom as it did in so many states. The housing bubble that has affected millions nationwide was not a huge issue in Texas. Why? One theory says that our land use laws are not nearly as conservative and restrictive with buyers and property costs are much, much cheaper.

Another theory, which may be in connection to the point above, Texas is growing faster in key areas than any other state in the US including one of the fastest growing business sectors in the world. Combine success in business with people flocking to the state for low home prices and a good job, and Texas is dominating the recession. In fact,Texas has four cities in the top ten housing markets in the US which include Dallas, Houston, Austin, and San Antonio.

Except for our suffering baseball organization, now is a great time to live in Texas. We should all appreciate the advantages of residing in this thriving state! And by the way, there’s a rumor going around that Chuck Norris himself will be bidding on the Rangers. If he can’t fix the team, nobody can!

Contact Encompass Lending Group for all your mortgage lending needs.

Is the residential and commercial real estate market turning around? Many people wonder. The reports have not yet surfaced for July but are predicted to show a drop in sales.

“While May’s report on its own looks somewhat positive, a broader look at home price levels over the past year doesn’t show that the housing market is in any form of sustained recovery,” said David M. Blitzer, chairman of S&P’s index committee. “Since reaching its recent trough in April 2009, the housing market has really only stabilized at this lower level.”

The National Association of Realtors reported recently that June sales of existing homes declined 5.1% from May but are up 9.8% for the year. “What this means is that most home loans are being financed with government guarantees from the FHA, Freddie (FMCC.OB) and Fannie (FNMA). I had thought the FHA had run out of money, but apparently their limits have been extended. The last numbers I saw said that 90% of loans are government backed,” says Jeff Harding, a real estate investor and author of The Daily Capitalist.

Home prices will now stay under pressure as foreclosures continue rising, which will cause inventory to increase and more Texas homeowners loans to be refinanced. So what about commercial property, is there hope?

According to reports from AmericanBanker.com, Many community and regional banks have charged loans off, mostly in commercial and construction financing. Even though there are possible signs of recovery, banks must still reappraise properties that serve as collateral. When appraisals are lower, the bank has to record it, whether or not the loan is delinquent which in turn, hurts capital.

We’ll continue sharing updates about the health of the mortgage and real estate industries because we think it’s important for consumers and businesses to have the knowledge to make informed decisions.