Saturday Reporter-Herald December 4, 2010 E1
Real Estate Matters
www.homeandrealtyguide.com • Saturday, December 4, 2010 • Reporter-Herald
Shop around for the best loan ILYCE GLINK AND SAMUEL J. TAMKIN TRIBUNE MEDIA SERVICES
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uestion: I have been following your column in my local newspaper and never imagined I would have a question to ask one day. Two months ago, I applied for refinancing with my current lender and was offered 4.875 percent (90 day lock rate) compared to my current 5.75 percent. I was told I could back out anytime and the cost to me would only the appraisal cost of $380 and the cost of the survey. Both of these were charged to my credit card and the appraisal was done and was more than enough to qualify for the loan. For the last four weeks, I have been e-mailing and leaving voicemail asking if we can lower the rates, given that these have come down, and to get updates on the loan processing. The loan officer responded that closings were averaging 75 days and that we were only 50 days into the loan application. He did not respond to my interest rates query. I read the fine print in my loan application, and there is no clause about penalties of cancelling, not pursuing or closing the loan. Yesterday, the loan officer emailed me requesting more information from me that the underwriter had requested to complete the loan application. In the meantime, two weeks ago, I checked with my regular bank and I verbally gave them my credit score and the amount from my recent appraisal. On that basis, my regular bank offered me 4.375 percent for a refinance. What are the strategies and options for me to salvage a better rate given the above? Do I ask my current bank to send me the loan application and evaluate? If my current bank offer of 4.375 percent is credible, can I accept it? My crystal ball seems to say that that interest will remain the same for the next couple of months. Look forward to your advice. Answer: Can we borrow your crystal ball? Seriously, if you want to walk away from your application, the cost will probably be the $380 you’ve already paid for the appraisal and any other costs that have already been paid. You should check the paperwork to
Avalanche of Risks Event at CSU’s Everitt Real Estate Center discusses risks in real estate market courages home buying — something he described as having a very “damaging effect.” Another CAR representative was Rachel Nance, the organization’s Vice President of t the Avalanche of Risks event for Policy. She spoke on the new political layout members CSU’s Everitt Real Estate Center, panels and speakers discussed of the Colorado legislature. She said dealing risks they expected to affect the real estate with the budget will be the number one ismarket and greater economy in the coming sue for the Colorado Congress and that despite the new divisions she does not believe year. this will lead to gridlock. She said a split Robert Golden, CEO of the Colorado Association of Realtors, said Colorado’s econo- Congress will lead to more thoughtful, my has stayed relatively steady compared to strategic and less extreme legislation on both sides. many other parts of the country, and while it has experienced home value declines, it is PANELISTS also recovering faster than other areas. Brent Coan of Otis Coan and Peters, a real Golden said NAR membership is at 22,000, down 6,000 over the last two years, estate, business and estate planning law firm, moderated a panel on local risks, fobut the ratio of active licenses to Realtors cusing on capital, taxation and floodplain ishas spiked. Golden said the number one issue for NAR sues. is opposing caps on itemized deductions on CAPITAL mortgage interest, a potential part of the Mark Driscoll, president of First National administration’s tax reform plan. Bank, based in Fort Collins, spoke on curThe caps on mortgage deductions have rent risks in the financial system and the been seen as a home buying incentive and problems community banks are facing with would lead to a reluctance to purchase, lending and new regulations requiring Golden said, and put a downward pressure on home prices further damaging the econ- banks to have more reserves and capital, causing some banks to shrink or consoliomy. date. There is a concern about who will fiGolden quoted the NAR president, Ron Phipps on the issue: “Any further downward nance local housing if banks are forced to consolidate because of new regulations. pressure on home prices will hamper the economic recovery, raise foreclosure, hurt 100 YEAR FLOOD PLAIN bank’s abilities to lend and likely tip the Steve Hanson, president of Oxbow, Inc economy into another recession. It very well spoke on the 100 Year Flood Plain proposal could close the door on the American in Fort Collins and the move toward indream.” creased regulations at the state and local Golden said the group is urging it’s 1.2 million members to contact their represen- level that could negatively impact residentatives to oppose this portion of the admin- tial and commercial property owners. istration’s tax proposal. Hanson added that the if Fort Collins moves forward with an upgrade in regulaNAR will begin a campaign after the first tions, the state may follow in their footof the year called Homeownership Matters to highlight the importance of homeowner- steps, and lose a competitive edge as many ship. Golden said it is typical in a recession small communities in Colorado are built on rivers and would be impacted by the new or hard economic times that the media highlights the benefits of renting and disregulations.
JENNIFER LEHMAN SPECIAL SECTIONS REPORTER
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RH Photos/Jennifer Lehman
Colorado Association of Realtors CEO Robert Golden spoke at the CSU Everitt Real Estate Center’s event, Avalanche of Risks.
TAXATION Steve Soukup, President of Soukup, Bush & Associates, spoke on federal and state income tax risks and said that taxes have a significant impact on real estate and real estate development. He said he expected the Bush tax cuts to be gone in the next year or two leading to a 10 percent increase in taxes and a potential increase in dividend rates.
Award Presentation
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t the Avalanche of Risks event held by CSU’s Everitt Real Estate Center, the organization’s Hall of Fame and Entrepreneur of Year awards were presented. The Hall of Fame award was given to Bill Bartran, a long-time home builder in Fort Collins who passed away in August of this year. His daughter, LeeAnn Mill, accepted the award on his behalf. Eric Holsapple, co-founder of Loveland Commercial, was named Entrepreneur of the Year and said he is proud of being a part of founding the Everitt Real Estate Center at CSU.
Eric Holsapple of Loveland Commercial accepts the Entrepreneur of the Year award.
I See Glink /Page E4
LeeAnn Mill accepts the Hall of Fame award on behalf of her father, Bill Bartran.
Inside this week’s Home & Real Estate
Real Estate Transactions
Rents May Rise
Listings of Northern Colorado homes that have recently sold
Vacancy rates fall across state, spur increase in rent prices
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