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Ways to Quickly Boost Credit Scores

As lenders tighten their underwriting guidelines, borrowers are wise to raise their credit scores to qualify for loans, secure better loan terms, and receive lower interest rates.

"Individuals can positively affect their credit scores in as little as three weeks," says Edward Jamison, a Los Angeles-based credit attorney. "It's just a matter of getting educated and focused on the best, fastest, and most reliable course of action."

Jamison, who you may know as a credit expert on the NBC show, “Starting Over,” offers these six tips for improving credit strength quickly.

1. Know your limits. Borrowers should first check their credit limits and evenly distribute the balances they're carrying to help increase their credit scores, or better yet, pay them off in full to get the highest score increase. "Make sure your maximum limit is reported," Jamison says. "When no limit is reported, credit scoring software presumes the account is maxed out."

2. Bring the balances near zero. The credit scoring software scores more favorably to those with a closer balance to zero. Balances over 70 percent damage credit the most, followed by the next tier of 50 percent and then 30 percent of the maximum credit limit. "Rather than carrying a large balance in an unfavorable tier, redistribute outstanding balances over several credit cards," advises Jamison.

3. Don’t cancel your cards. "Closing credit card accounts can hurt your score unless the accounts were opened less than two years ago, and you have over six credit cards," Jamison says. Fair Isaac's credit scoring software assumes that people who have had credit for a longer time are at less risk of defaulting on payments.

4. Eliminate late payments (but ask nice). Get rid of late payments listed on the credit report. "Contact the creditors that report late payments and request a good faith adjustment that removes the late payments reported on your account," Jamison says. The creditor may work with you, but it may require more than one phone call; patience is required. Your odds of success will dwindle if you're rude or unclear about your request, he adds.

5. Get rid of collection accounts. But only if the collection agency agrees to delete them in return. Paying them off can otherwise actually lead to a decreased credit score due to the date of last activity getting updated to the current date when you pay. The consumer should contact the collector and request a letter explicitly stating the agreement to delete the account upon receipt or clearance of the payment, Jamison says. Not all collection agencies will delete reporting, but it's certainly worth the effort.

6. Pay off past due amounts on accounts that are not in charge-off status. After that, Jamison advises getting rid of charge-offs and liens that are less than two years old. "Charge-offs and liens that are older than 24 months do not affect your credit score nearly as much as ones under 24 months," says Jamison. "But if they're newer than 24 months, they can seriously damage your credit." If you have both charge-offs and collection accounts, but have limited funds, pay off the past due balances first, then pay collection accounts as long as the collectors agree to remove all references to credit bureaus.

— REALTOR® Magazine Online (July 20, 2007)

--Heads Up:  It is also better to have a few credit cards with smaller balances vs. one credit card with a large balance!

WHAT'S THE POINT?

When shopping for a mortgage, buyers are inundated with numerous types of loans and options. One of these involves paying points. To understand points, it’s necessary to know how a lender earns money on a mortgage. The two primary ways are through fees a customer pays up front and through the interest rate. In some cases, the lenders may offer a lower rate. However, to compensate their loss in earnings for this lower rate, they will charge the customer discount points. One point is equal to 1% of the loan amount. Is the lower rate worth the extra money (points) a customer may have to pay up front? A simple example can illustrate this.

Assume the lender offers a 30 year fixed rate mortgage at 6 percent on a $100,000 loan amount. The payment (principal and interest) would be $599.55 per month. Let’s say you ask the bank for a lower rate and they then offer you a loan at 5.5%, but they charge you 2 discount points to take advantage of this rate. In this case the 2 discount points are equal to $2,000, which must be added to your closing costs. The monthly principle and interest payment on your loan at 5.5% is $536.82, which is a $62.73 savings each month from the loan payment at 6%.   

How long would it take you to recoup the $2,000 you had to pay up front to take advantage of the lower rate? To find out, you simply divide your savings of $62.73 each month at the lower rate into the cost of the points, $2,000. The answer is 32, which means it would take you 32 months to recoup the points you had to pay at closing. This means you would have to stay in your home and not refinance your loan for at least 2 years and 8 months to begin taking full advantage of the lower interest rate.

Please note:  Lenders may also use an "origination fee" in the same manner as illustrated above.

How can I help in this situation? I'm very familiar with financing and can tailor  your real estate contract to meet your financial goals. In the above situation, if the lower interest rate and payment is your primary goal, we could write an offer asking the seller to pay all or some of the points you are charged. This means you could realize the savings from the lower rate immediately!  A slower market means sellers are much more willing to negotiate.  You may actually save much more money in the long run by asking a seller to pay points to lower your loan interest rate instead of asking the seller to reduce his/her price! 

The financing aspect of a real estate transaction can be tricky. Today’s complicated environment necessitates the use of a professional who can tie all aspects of the process together.  I can and will do that!  Please visit my mortgage calculators page for additional information.

Thank you for your time!

Mark Trafton

Great news here!  The data for Pending Sales (those homes that have recently gone under contract) show dramatic increases recently.  This means we should have alot more closings in the next couple of months.  This data comes from the Florida Association of Realtors. 

The Tallahassee Area:

"The Tallahassee Board of Realtors(r) (Leon County) reports an
increase in their pending sales both from a year ago and from January 2008.
Today, the pending home sales in Leon County are 410 compared to 325 in
January 2008, an increase of 26 percent. A year ago, pending home sales in
Leon County was 283. " (an increase of 45% )

Other Florida Locations:

1. The number of Realtor-assisted sales pending for single-family homes in
Lee County was 1,088 on Feb. 14, up 33 percent from 821 a month earlier.

2. The Realtor(r) Association of Greater Fort Myers and the Beach (Lee
County) had an 85.4 percent upswing in pending single family home sales in
the last 10 weeks. The number of months it takes to sell all residential
properties has dropped to 12 months from a high of 22.98 months in December
2007.

3. In Martin County, there were 182 pending sales on January 1. Today,
there are 345 pending sales, representing an increase of 90 percent.



4. The Emerald Coast Association of Realtors(r) (Okaloosa County) reports
their pending home sales were 383 in January and rose to 473 for February,
representing a 23 percent increase.



5. Pinellas County reported 600 single family units under contract in
February, up 23 percent from 489 a month earlier.



6. Marco Island (Collier County) reports pending sales numbers on March 1,
2008 at 135 while a year ago (March 1, 2007) this number was 104. Their
pending sales on January 1, 2008 were 77 and in March 1, 2008, pending home
sales were 135, up 75 percent.



7. The Realtor(r) Association of Greater Ft Lauderdale (Broward County)
has a forecast of pending sales that is quite impressive. Their single
family pending sales (which includes condos and townhomes) totaled 529 in
January but their pending inventory forecast for the month of February is
871. That is an increase of 65 percent.

8. Palm Beach County has seen a drastic increase in single family homes
sold between January and March this year. Between January 14 and February
14, 2008, 672 homes were sold. Between February 15 and March 10, 2008, 827
homes sold for an increase of nearly 30 percent month to month.



9. The Pensacola Association of Realtors(r) (Escambia County) reported
pending sales at 297 (includes single family homes and condos) in January
2008. In March 2008, this number rose to 345, an increase of 16 percent.



10. The Heartland Association of Realtors(r) (Highlands County) had 10
pending home sales in January 2008 and 43 in February 2008. This is an
increase of over 300 percent.



11. The Venice Area Board of Realtors(r) (Sarasota County) reported
110 pending sales in February 2008 compared to 85 in January 2008. This is
an increase of 29 percent.



12. Naples Area Bo ard of Realtors(r) (Collier County) had 513 pending
sales in February 2008 compared to 413 pending sales in January 2008, an
increase of 24 percent. Also, the pending sales for February 2008 are 10
percent higher than pending sales in February 2007 (464).



13. Flagler County Association of Realtors(r) (Flagler County) did not
have any pending sale in January 2008 but had 20 pending sales from February
1, 2008 until now.



14. The West Volusia Association of Realtors(r) MLS (Volusia County)
shows a 34 percent increase in home sales in February 2008 over January
2008.



15. The Orlando Regional Realtor(r) Association report s an increase
in pending sales in both Orange and Seminole Counties. In Orange County,
pending home sales increased by 29 percent from February to March and in
Seminole County, pending home sales went up from 331 to 404, a 22 percent
increase. 



16. Amelia Island-Nassau County Association of Realtors(r) (Nassau
County) MLS shows pending home sales at 150 in March 2008, up 83 percent
from 82 pending sales in January 2008.



17. The Sarasota Association of Realtors(r) MLS (Sarasota County)
reported 654 sales pending (single-family and condo) in February 2008, an
increase of 27 percent over the 516 sales reported pending in January 2008.
In addition, Sarasota had 418 closed sales in February 2008, up 28 percent
from the 327 closed sales in January 2008.

Why Tallahassee?

I'm convinced Tallahassee is by far, one of the best places to live, work, and raise a family.  How do I know?  Well, as Johnny Cash says, "I've been everywhere, man!" 

I was born and raised here, but have had the opportunity and experience of living in Mississippi, Texas, California, and Oklahoma.  I've also visited every state in the U.S. and have been to over 30 countries during my time as a pilot in the U.S. Air Force and the airlines.  My experiences while living/traveling outside Tallahassee and my discussions with fellow crewmembers living throughout the U.S. have convinced me Tallahassee is THE place to live.

Why is Tallahassee so great?

--Our people:  Our people are some of the most friendly in the world!  Tallahassee is Florida, but with a Southern Charm and hospitality that is unmatched.  Unlike larger cities, Tallahassee residents will often greet you with a warm "Hello" and will likely strike up a friendly conversation in passing on the sidewalk or in a grocery store line.

--Our environment:  Tallahassee's majestic live oaks, rolling hills, pristine lakes, canopy roads, and colorful flowering trees/plants make it a unique, pleasant, and beautiful place to live.  Springtime in Tallahassee is especially wonderful with the blooming dogwoods and azaleas.  The Spring Time Tallahassee festivities are just around the corner!

--Our Schools:  Leon County's public schools are among the best in the state and country.  It's one of the few locations where you know your children will receive an excellent education and will learn in a safe, nurturing, and caring environment.  I am a product of the public school system here and was well prepared for the vigorous academic, physical, and military demands required at the U.S. Air Force Academy.  My 3 sons currently attend public schools here.  We've been absolutely thrilled with their education and experiences.

--Our Location:  We're mere minutes away from pristine lakes and forests.  We're also very close to the Gulf of Mexico and some of the world's finest beaches and salt water fishing. 

--Our Size:  Leon County has roughly 255,000 residents--so we're not so large that traffic is always snarled and everything is overcrowded yet, we're large enough to attract big time entertainers, singers, and sports events, such as the "7 Days of Opening Nights" performing arts program and the "Red Hills Horse Trials". 

--Our Sports/Activities:  Our Parks and Recreation Department was recently named as the BEST in the whole U.S.  I'm totally convinced it is THE BEST.  The programs for kids are UNMATCHED.  There is something for everyone--soccer, baseball, softball, flag football, tackle football, basketball, swimming, gymnastics, jogging trails, bicycle trails, etc.... One of my great thrills has been the opportunity to coach my sons' baseball and football teams.  The programs here provide a great environment to learn sportsmanship, teamwork, physical skills, and to establish life long friendships.  Game days are great social events where you'll get to know and visit with other parents and kids.  We've met some outstanding people over the years and have developed great friendships.

I'd be derelict if I didn't mention the big time collegiate sports we have here.  There's nothing like tailgating at Doak Campbell Stadium prior to an FSU football game or watching 80,000 screaming fans singing the FSU warchant and doing "the tomahawk chop" in unison!  I've also attended FSU basketball, baseball, and soccer games---they are fun and are a great way to spend time with the kids!  FAMU and TCC also have excellent athletic programs and are great venues to watch games.

--Our Economy:  Our economy is anchored by the state government and major universities (FSU, FAMU, TCC).  We are primarily a service oriented economy with little heavy industry.  Because of this, our economy is stable and positioned well for constant, predictable growth.  Our housing market is also more stable and has faired much better than most other markets in Florida.  Our home values in Tallahassee actually INCREASED or HELD THEIR VALUE last year according to the latest multiple listing service statistics!

As you can see, Tallahassee has a lot to offer.  We truly love living in Tallahassee and look forward to many great years ahead here!

Thanks for your time!

Mark Trafton

On Tuesday, January 29^th, 64% of Florida Voters approved Amendment 1 involving property taxes.

How will this help the average homeowner? Not much as the average savings per homeowner will be only $20 per month ($240 per year). These tax savings do little to offset the huge tax INCREASES many experienced during the real estate boom a couple of years ago when property values skyrocketed.

Many argue that the solution to our property tax woes in Florida lies with limits on government spending, not taxation.  During the recent real estate boom, the revenues and budgets of our local city and county governments exploded, growing at much higher rates than the rates of population growth, per capita income growth, or inflation. Instead of saving this extra money for a rainy day, or giving it back to the taxpayers, these governments spent every penny. These same governments now complain they will have to slash emergency services and other high priority programs due to amendment 1’s approval.  Our emergency services and high priority programs were funded properly and were working great prior to the real estate boom and its higher revenues, therefore they ought to be just fine as tax revenues return to the same reasonable levels before the real estate boom.

One bright spot in all of this is the portability issue that Amendment 1 addresses. Many homeowners have been unwilling to move up into larger, more expensive homes due to the huge tax increases they’d face once they purchased these homes. Now, they’d be able to take some of the “save our homes” tax savings they’ve accrued in their old homes with them once they purchase a new, larger home. Likewise, many “empty nesters” have been unwilling to downsize due to the possibility of paying higher taxes on a new home, even though it may be smaller. Now, they’re able to take the tax savings they’ve accrued with the “save our homes” initiative with them to the new, smaller homes they purchase.  Hopefully, this will provide a little boost to the slumping housing market in Florida.  A stronger housing market would resonate throughout Florida's economy.

The following information from the Florida Association of Realtors addresses the “portability” issue:

Portability – Moving up

Property tax savings portability (money saved over time on property taxes because of yearly increase limits through Florida’s Save Our Homes amendment) applies to homesteaders (homeowners with a homestead exemption) moving anywhere within Florida. Up to $500,000 of accumulated savings, applied to taxable value, may be transferred when one home is sold and another is purchased, with the transfer applying to all taxes, including the school portion. Homeowners have two years after they sell a home to buy a new one and transfer the savings.

If buying a more expensive home, a homesteader calculates savings by subtracting the assessed value (taxable value) from the just value (market value). The amount (savings over time) is then subtracted from the just value on the new home purchased. In most cases, the $50,000 homestead exemption will also be subtracted.

Example: Susie currently owns a home and has lived there for a long time. The house’s just value is $500,000, but because of Save Our Homes, the assessed value is only $200,000. Susie buys a new house for $700,000. The following year, she’ll pay taxes on only $400,000, however, because she’s “porting” $300,000 in value to her new home. After factoring in the new homestead exemption of $50,000, her total assessed value would be $350,000.

If buying a less-expensive home, the calculation changes and is based on the percentage of tax savings rather than a dollar amount. If the assessed value on the original home was 50 percent of the just value, for example, the homesteader would transfer that percentage to the new home, or have a new assessed value that is 50 percent of the new home’s just value. The percentage system was created to keep homesteaders from effectively eliminating their property taxes altogether by moving from a high-cost area of Florida to a low-cost area – a change that could severely hurt smaller rural economies.

Example: Susie currently owns a home and has lived there for a long time. The house’s just value is $500,000, but because of Save Our Homes, the assessed value is only $200,000. Susie buys a new town home for $300,000. She’ll pay taxes only on $120,000 because when buying down in value, she’ll keep the same ratio (40 percent) of assessed value to just value that she enjoyed in her old home. After factoring in the new homestead exemption of $50,000, her total assessed value would be $70,000.

Also, portability is retroactive to Jan. 1, 2007 – so everyone who bought this year and moved from an established homestead will be able to “port” their savings for next year. Since yearly tax values are based on ownership as of Jan. 1 each year, portability would not affect this year’s tax bills, which most homeowners have already received; but the savings will be applicable to next year’s tax bill.

I hope this information has helped you. Thanks for taking the time to read my blog and please call or email me if you need any real estate assistance.

Mark Trafton

850-322-9036

mark@marktrafton.com

We've got great news!  New pricing has gone into effect for Stone Mill (Bull Run, Unit 3)!!!  Some lots have been discounted by 40%!!  There's never been a better time to buy!  Please check out the "Bull Run" page of my website.  Have questions?  Call me at 850-322-9036 and I'll get them answered!  Thanks for your time.

NEW PRICING IN EFFECT!!!!

CHECK OUT THE GREAT DEALS!!!

Lots Available for Individual Purcahase in Bull Run Unit 3 !! Buy Now and Build Later!!

STONE MILL AT BULL RUN

Welcome to one of Tallahassee's newest neighborhoods. Stone Mill is a pristine yet convenient location just off of Thomasville Rd approximately 3 miles north of the I-10 interchange (heading north on Thomasville Rd, turn left onto Chancellorsville and continue straight to round-a-bout). You'll find gentle rolling hills, century live oaks and abundant wildlife in this wonderful setting. Stone Mill is Bull Run's newest phase and is considered the estate section, containing the largest lots in the development. The lots range from 1/3 of an acre to over 1.2 acres. Many are surrounded by conservation easements and buffer areas! You can buy now and build later if you'd like. Need a builder? I can help. Please call me at 850-322-9036 or email me from this website.

Stone Mill (Bull Run Unit 3) Price List

Block Lot Acreage Price

S 1         Sold             Sold

S 2         .63             $120,000

S 3         .63             $120,000

S 4         .80             $175,000

S 5         .91             $225,000

S 6         .79             $208,000

S 7         1.15           $241,000

S 8         1.18           $243,000

S 9         .95             $235,000

S 10       1.16           $237,000

S 11       Sold             Sold

S 12         .81             $225,000

S 13         .80             $230,000

T 1           .78             $210,000

T 2           .76             $205,000

T 3           .94             $213,000

T 4           .91             $214,000

T 5           .80             $180,000

U 1           .44             $145,000

U 2           .42             $160,000

U 3           Sold             Sold

U 4           Sold             Sold

U 5           Sold             Sold

V 1           .37             $130,000

V 2           .33             $130,000

W 1          .58            $175,000

W 2         .57             $169,000

W 3         .56             $169,000

W 4         .56             $170,000

W 5         .58             $176,000

W 6         .58             $176,000

W 7         Sold             Sold

W 8         .53             $166,000

W 9         .53             $166,000

W 10       .53             $153,000

W 11       .53             $153,000

Here's a good article from the "Daily Real Estate News", Florida Association of Realtors

December 31, 2007

5 Simple Ways to Increase a Home's Value

Good home maintenance is key to creating and preserving a home’s value. Not to mention, it also impresses potential buyers.

Here are five basic steps that every home owner ought to take — before spending money on dream bathrooms or gourmet kitchens.

1. Safety. Make sure smoke detectors and carbon monoxide detectors are installed and in good working order. Check fuel-burning appliances to make sure they are properly vented and no gas connections leak. Make sure the electrical system is adequate. Flickering lights and popping breakers are the sign of a problem. Anchor handrails and grab bars adequately.

2. Preventive maintenance. Repair any leaks in the roof, seal gaps in the siding, paint bare wood, replace damaged decking, patch cracks in concrete, and caulk around tubs and showers.

3. Conserve energy. Install a programmable thermostat, weatherstrip doors and windows, fix leaking faucets, upgrade insulation, and replace leaky windows.

4. Go green. Consider environmentally friendly materials for windows, doors, siding, decking, fencing, roofing, flooring, and insulation.

5. Improve comfort. Get rid of clutter, open up spaces, update window treatments to allow in more light, and organize closets and storage.

Source: The Associated Press, James and Morris Carey (12/29/07)

We have many customers moving to Tallahassee from south Florida to escape the crowds and traffic gridlock.  We're also seeing more retirees moving here from up north.  Tallahassee is a state government/college town.  The lifestyle here is very appealing--our population will continue to grow!

Here's some info from the Florida Association of Realtors.  

People watching

Reports of Florida’s declining population boom are greatly exaggerated. That’s according to Stan Smith, director of the UF’s Bureau of Economic and Business Research. “There have been a number of news articles lately focusing on the idea that population growth in Florida has fallen off and practically come to a standstill, and that simply isn’t true,” says Smith. “Florida has a strong economy and adds jobs every year. That is a major factor in last year still being a big year for population growth, even though it was less than in the previous three years.” According to new UF research, Florida’s population grew by 331,000 between 2006 and 2007, or about 900 people per day. That’s slightly less than the 1,100-people-per-day rate recorded a few years ago. Florida’s total population is 18,680,367 as of April 1, 2007. Where are all these people going? To Orange, Miami-Dade and Hillsborough counties, according to UF. But in terms of growth rates, Flagler, Sumter and Osceola counties lead the state.