Check Out This Credit Repair Video

Remember, McArthur Homes is offering FREE Credit Repair from Nitro Credit from those who purchase a new home. For more information, email kristi@mcarthurhomes.com.

The Low Down on Credit Scores

Credit scores can be confusing and frustrating. The good news is that once you understand how to build your credit, your credit score can be your best friend. Check out the table below to see how building good credit can save you thousands of dollars on your new home.  I've also posted some information on how your credit is calculated. Thanks to Nitro Credit for all the helpful info. They are experts at credit repair!

Want to learn even more about building your credit? Join McArthur Homes and Nitro Credit for a FREE Credit Repair Seminar on November 6th at 10:00am. Located at the Thanksgiving Meadows Clubhouse, 3790 N. Bluegrass Blvd, Lehi Utah. For more information email jesse@mcarthurhomes.com




Our lives revolve around credit and FICO scores but sadly some people never realize it until it is too late. The chart below shows how much more someone with a lower credit score would pay over the term of a 30-year conventional mortgage loan for $200,000.
(5/2009)

Credit Score	Interest Rate	Cost of Your Credit
720-850	4.75%	$0.00
700-719	5.125%	$16,668.00
640-699	5.67%	$41,392.80
600-639	6.5%	$79,506.00

Your credit score is calculated based on credit-related information contained in your credit file. This information is analyzed in five different ways to produce a three-digit FICO score.

1. Payment History:
    35% of your score is based on paying your credit related accounts. Late payments and other negative marks drop your score quickly.
2. Credit Utilization:
    30% of your score is based on how much credit you have and how are you using it. If you are close to utilizing the maximum amount of credit limit provided you, this can reflect negatively on your score.
3. Length of Credit History:
    15% of your score is based on good payment history over a period of time.
4. New Credit Inquiries:
    10% of your score is based on the number of inquires coming from creditors.
5. Types of Credit:
    10% of your score is based on having different types of credit accounts such as home mortgage, vehicle, credit cards, etc.

New Herriman Library Opens Across from Herriman Towne Center

The brand new Herriman Library has just opened up across the street from McArthur Homes' Herriman Towne Center homes. The library's Grand Opening was Saturday, October 23rd. Local families flocked to the library to celebrate this exciting event, the start of many new facilities opening up at the heart of Herriman. The beautiful new library is located next to the new Herriman Recreation Center, which is currently under construction. The address is 5380 West Main Street. Click here for more information on the library, including upcoming events.

Come check out the beautiful new library, and while you're there, stop across the street to view McArthur Homes' newest community, Herriman Towne Center. Our model home is under construction and will open soon at this amazing location! For more information, email kristi@mcarthurhomes.com

Tips for Keeping Good Credit

Working in the home building industry, I have seen many people who have been held up from building their dream home, simply because their credit scores were too low. McArthur Homes has recently teamed up with Nitro Credit to help our homebuyers improve their credit scores. We are offering FREE CREDIT REPAIR to those who purchase a new McArthur Home.

Here are a few tips from Nitro Credit on how to keep good credit. I'll also be posting tips and ideas for building and repairing credit, so check back!


 It is very imperative that you continue to work to keep your credit scores high. A lot of people work hard with credit restoration companies and are able to get their terrible credit back in a place where they want it to be.

The trouble happens when the customer falls back in to their bad habits. They don’t maintain the good credit that they achieved through credit restoration. This can be very frustrating, especially to customers that really worked hard to achieve credit restoration. Here are some tips for helping maintain good credit once you restore it.

1. Stay on top of the amount of debt you have. Your credit card balance needs to stay 25% below the limit ideally. It is a good rule of thumb to remember to only charge what you can pay off every month.

2. Take advantage of bills that have the automatic pay option. This allows the deductions to come out right after you receive your paycheck. That way you aren’t late, and you know you have the money to cover the bill.

3. Don’t put up a lot of credit inquiries. Keep it down to a minimum. You may be used to applying for a few different lines, but stop that habit now. Only apply for lines that are essential and that you know you can pay off.

4. Pay your bills on time. You know this is important, but make a plan to get it to happen. Set up the automatic pay option, mentioned above, or make notes on your calendar when your bills are due. If you are forgetful, set up multiple alarms throughout the day so you don’t forget.

5. Don’t accept every credit offer that comes your way. Be picky about what lines you use. You want to be sure that you actually need it and know you will be able to afford it and pay it back.

6. Be smart and safe about your credit. Credit can quickly be ruined by others through identity theft. Be sure to have identity theft protection measures to prevent this from easily happening.

Why all the Buzz about Interest Rates?

So if you haven't heard everyone talking about LOW INTEREST RATES, you may be living in a cave. Interest rates are down as low as 4.375%. Compared to average rates of 7% that is a huge savings and compared to the 18% interest rates that my parents got on their first home in the 80s it seems downright unbelievable!

But what does that really mean to you? Interest rates can seem kind of obscure and not totally relevant to your bottom line. Here are some hard numbers to show you just how big a deal this really is:

$119,531 ... That's the amount of money you could save on a $200,000 loan over the life of the loan with a 4.375% Interest Rate vs. the historical average of 7%. (A bigger loan amount would mean even bigger savings.)

$14,232 ... That's the additional yearly income you would need to qualify for the SAME LOAN with 7% interest rates instead of today's low 4.375%.

$332.03 ... That's the bottom line savings in your monthly payment with a 4.375% rate vs. a 7% rate on a $200,000 loan.

So if you're waiting for the "perfect time" to purchase your new home, THINK ABOUT THIS: Buying now means you can get MORE HOUSE FOR LESS MONEY per month and you will SAVE MONEY ON EVERY MONTH OF EVERY YEAR on your payments until you pay off your home loan. Is there a $14K raise in your near future? Do you have an extra $120,000 that you'd like to throw away on interest payments? If not, now may be the perfect time for you to invest in a new home.


Thanks to Pierre Alley, McArthur Homes' preferred lender for his help in putting together this information. Click here to find out more about Pierre and financing your new home.

Here's all the math for you detail oriented people:
Parameters: $250,000 purchase price, Loan Amount: $200,000 or 20% down
Conventional, 30 year fixed rate
Rate of 4.375%, APR = 4.526%, P&I payment = $998.57, Total over 30 years = $359,485
Approximate monthly income need to qualify = $4278 (based on a conservative 28% ratio) or $51,335 or borrower needs to make $24.68 per hour
Same loan parameters
Rate of 7.00%, APR = 7.177%, P&I payment = $1330.60, Total over 30 years = $479,016
Approximate income needed to qualify = $5464 or $65,568 or borrower needs to make $31.52 per hour.

Saving with the lower rate = $332.03 per month or $199,531 over the term
Additional monthly income needed to qualify at the higher rate = $1186
All number based OAC.  

New Golf Course Community- Stonebridge at The Ranches

This morning I dropped by McArthur Homes' newest community, Stonebridge. This new neighborhood is located near the entrance of The Ranches of Eagle Mountain, right on The Ranches Golf Course and across from the charter high school, Rockwell. Could the location be any better? The views from these large estate home sites are gorgeous too, so I pulled out my camera and snapped a few pictures of this prime location. With homes starting in the high $100s, golf course living is affordable now! Follow this link for floorplans and pricing on these golf course homes.

Our new model home is now open! Monday-Saturday, 11am-7pm

VA Loans

We have recently had several McArthur Homes homeowners who have financed their home using a VA loan. This is a unique program available to veterans which allows for 100% financing and competitive interest rates. Below I have provided some basics of VA loans, which were provided by one of McArthur Homes' preferred lenders, Scott Smith.


Down Payment & Mortgage Insurance Not Required

The VA Loan allows Veterans 100% financing without private mortgage insurance or a needing to obtain a 20% second mortgage. The guarantee of a VA Guaranteed Home Loan means the lender is protected against loss if you fail to repay the loan. Because the guaranty replaces the protection that the lender normally receives by requiring a down payment or mortgage insurance, qualified borrowers are allowed to obtain favorable financing terms without a down payment.

Assumability

A VA loan can be assumable. For VA Loans committed on or after March 1, 1988, you may sell your home to someone who agrees to assume your loan if the creditworthiness of the new borrower is approved. This can be a significant selling point when it comes time to sell your home.

Interest Rate

VA loans rates offered to VA borrowers can sometimes be lower than interest rates offered to the same borrowers for conventional loans.

No Prepayment Penalty

You are able to repay your VA loan at any time with no penalty.  Often loans with prepayment penalties require an additional amount be paid to the lender if the loan is repaid within the first two or three years.  Your VA benefit provides this extra peace of mind.

Late Payment Guidelines

One of the requirements for the servicing company of a VA Home Loan is that there be no late charge unless payment is more than 15 days overdue. Any late charge may not exceed 4 percent of payment amount. In addition, financial counseling is available from the VA in case of temporary financial difficulties.

Streamline Program

The VA Streamline Refinance allows qualified VA mortgage holders to refinance at a lower interest rate and/or term without having to re-qualify and in some cases obtain another appraisal. This is provided to those who have remained current on their VA loans.

For more information contact Scott Smith of Prime Lending at 801-209-3850 or visit www.McArthurHomes.com.

The (Negative) Power of Pink

Recently I was reading an article on SmartMoney.com about the psychology of sales in real estate. The article sighted several interesting studies. One study showed that buyers were significantly less likely to buy a home where the living room was painted pink. This surprised me because it would take buyers only a few cans of paint to redo the room, but it still impacted their decision to purchase. So, if you're looking to sell your home, don't underestimate the power of staging your home and using neutral colors.

On the other hand, if you do repaint your home to make it more appealing to buyers, DON'T mention that on your listing. According to the article, listings that mentioned new paint sold, on average, for slightly less than those that did not. Apparently buyers feel that advertising new paint means that something had to be covered up.

Click here for more tips on selling your home. 

Check out the article here, to read more about the psychology of real estate.

Do It Yourself Firepit & Flagstone Patio

Here's a fun summer project that can improve the value of your home by adding more entertaining space in your backyard. The project took my husband and I one long weekend plus a few evenings. The cost is relatively minimal if you take the time to find a good deal on flagstone. We got ours on ksl.com for a fraction of the price that it would have cost us at a stone distributor.



Supplies:

• Firepit Kit from Lehi Block Company- This includes the stones for the firepit and also the metal ring. You can choose one with or without grates for barbecuing. www.lehiblock.com  
• Flagstone or pavers for the patio area- We used about a 1-1/2 tons of 2" thick flagstone to cover our 10X12 area.
• Concrete sand- We used about 3/4 of a cubic yard. You can purchase this by the bag at Home Depot/Lowes etc. or get it loose from Lehi Block or similar companies. 
• 2X4 for leveling sand
• Shovel
• Wheelbarrow for hauling dirt in and out 
• Level
• Rubber Mallet
• Masonry Adhesive (We used Liquid Nails brand from Home Depot)

Step One
Check with your city and neighborhood regulations to be sure firepits are allowed. Many cities have requirements that dictate how far your firepit must be from your home or other buildings.

Step Two
Clear the area where you will build your firepit and patio. Then dig the entire area down at least 3-4". You will need to dig deeper if your flagstone is very thick or if you are using thick pavers for the patio surrounding the firepit.

Step Three
Use your firepit ring to determine exactly where the firepit will be located. Be sure to allow space for people to sit and gather around the fire without sitting too close to the flames. Fill the area in and around the ring with 1-2" of concrete sand. Use the 2X4 to compact, smooth and level the sand.



Step Four
Place the first stone against the ring and use a rubber mallet to pound the stone tightly into the sand. Make sure the stone is level in every direction. You will probably have to add or remove little bits of sand. It helps to wet the sand slightly with a watering can or hose. -You can see my husband's cute pink watering can in the background of this picture. :)

Step Five
Continue setting stones around the firepit to create the first layer of stone. Make sure each stone is level to the next and not tilted in any direction. Spending extra time on this first row of stones will ensure that the next layers go smoothly. It took us about 3 hours just to create this first layer of stone, but the next 3 layers took only 20 minutes total.

Step Six
Once your first layer of stone is complete you can remove the fire ring and continue adding layers of stone until your firepit is the desired height. Make sure to offset the stones so that the seems do not line up. Use masonry adhesive to bond the top 3 layers to each other. Adhesive is not necessary on the lower levels as the weight of the stones will hold everything in place. Check to make sure each layer is level as you continue.


Step Seven
When all layers are complete, reinsert the metal fire ring and fill your firepit with sand and/or gravel to 1-2" above the bottom of the ring.

Step Eight
If you will be laying flagstone, first spread out and level more concrete sand. Next lay out your flagstone in the pattern you would like. Take the time to arrange the stones tightly, like a puzzle. Set each stone using a rubber mallet and level, adding or removing sand as needed. When all stones are set, fill the gaps with more sand or use fill dirt if you will be planting moss in the cracks of the patio. Click here for more detailed instructions on building a flagstone patio from American Stone.


Finally, invite over your friends and family and enjoy!

Interest Rates as Low as 4.375%

Interest rates as low as 4.375% have been announced by several of McArthur Homes' preferred lenders, but will they stay this low for long? Here's what Pierre Alley had to say about current interest rates:

Okay, so everyone was holding their breath anticipating where LeBron James would end up playing basketball. This topic has been discussed for months. But, the more important question for all of us is have we seen the bottom for interest rates? My guess is YES. The week started out with the European Banks showing a stronger position. French Finance Minister Christine Lagarde stated that after “stress” tests, European Banks are “solid and healthy. You may recall after the U.S. Banks went through their tests, the positive results helped boost stocks nearly 40%. A jump in our stock prices will most likely cause bond prices to fall. Claims for unemployment benefits were lower this week as well. Bonds have been priced for perfection and so any misstep in economic news provides a good reason to take out profits, which we have seen the last couple of days. I believe bonds have been overbought and so there could be a dark cloud hovering in the near future. This morning an executive board member on the European Central Bank stated, “the worst of the sovereign debt crisis seems to be over.” The jury is still out as Italy might be the next country to reveal debt problems. But for now enjoy these historic low interest rates.




Pierre Alley

Utah Mortgage

Work: 801-561-4700 Fax: 801-561-8585 Cell: 706-9763

Pierre@utahmortgageloan.net / www.utahmortgageloan.net