Utah County, Utah Real Estate
Utah Valley is one of the first areas settled (along with Salt Lake Valley) in what is now known as Utah County. The name Utah comes from the Ute Indians who name translates to “People of the Mountains”. Around 1849 Provo became the first permanent settlement in Utah and with in a couple of years there were several other settlements started (Alpine, American Fork, Lehi, Payson, Pleasant Grove and Springville) and Utah valley was on its way become Utah county in preparation of Statehood for Utah.
Some one hundred and fifty years later, Utah county is still growing. Provo, which is the largest city in the county and the county seat has developed into the center of growth for Utah county. Overall Utah county has a relative young population that is well educated and healthy. The solid economy has led to many of the residents having spare time on their hands for recreation. If you enjoy outdoor activities, you would probably really enjoy Utah county. There are many lakes and reservoirs along with camping sites and plenty of hiking trail, bike riding areas and plenty of off road areas for vehicles of all type. If you enjoy hunting, Utah county has some excellent deer, elf, pheasant, etc. Do you enjoy fishing, there are so many rivers, lakes and reservoirs that you definitely enjoy yourself. You prefer the winter seasons, Utah county has some great ski areas and there are many areas within a hour drive is other counties.
Utah county has a very low crime rate and the economy (wages and price of goods) is a little below the nation average. The cost of housing is extremely affordable and the market is very stable and there are plenty of homes available to buy whether you are looking for a preexisting home and a new home there are some very good value out there.
There are plenty of choices for the type of neighborhood you would like to live in, be it downtown, in a suburb or out in the county or in the mountains you can find whatever you would like. The styles of homes are abundant, from split level, to ranch/rambler or multi story home there is a lot to choose from. If you like condominiums or townhouses there are lots to choice from. Would you prefer to be in a PUD (Planned Urban Development)/gated community or how about next to one of the many golf courses.
This diverse county has a lot to offer and the real estate market currently leans towards the buyers. This means there is a large inventory of homes on the Multiple Listing Service (Realtors inventory) so buyers have the upper hand when negotiating on price or terms. This of course will change over time since the real estate market will fluctuate when the economy changes.
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Mortgage Call Capture Benefits For Real Estate Agents
A mortgage call capture service is an innovative way to capture leads without having to pay for a lead list. When a mortgage brokerage uses a service like this it helps to build rapport among broker and agents, as well as helping agents garner more listings. In the end, both the agents and the broker end up with more business.
As technology advances, everything that uses technology also seems to advance. Formerly, mortgage call capture services were available on an individual basis. This meant only one agent was benefitting from at a time. The newer systems allow whole offices to use the system so that every agent is able to benefit from the lead generation.
It Helps Generate Hot Leads
In the real estate industry there are hot and cold leads. A hot lead is one in which the buyer or seller is ready to go and they just need representation. A cold lead is when the buyer or seller was interested a few weeks or months ago, but now they’ve changed their mind or have decided to try to buy or sell on their own. A mortgage call capture service makes every lead a hot lead. That’s because the service captures the number of the caller and immediately routes it to the correct party. The agent is then able to return the call quickly before losing the potential client.
If the call capture service records a number, you know that the caller is interested in a particular property or interested in getting information. You are able to jump on the opportunity while the buyer or seller is eager to get their business handled. This prevents agents from having to track down leads that may be weeks old and won’t provide profitable results.
Mortgage Call Capture Can Establish You as an Expert
While many real estate agents like to use sign riders when using the capture service, you can also run print ads in magazines or the newspaper. These can be placed next to your listings and offer readers the chance to get information and include a call to action. When they dial the mortgage call capture number, they will be connected to a recording that directs them to the information they need. You will be sent their information so you can follow up with the lead, and by using the recorded message you’ve been able to establish yourself as a leader in the industry before you’ve even spoken with the potential client.
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Are No Cost Loans Real?
No Cost Loan: How it’s Possible
In the mortgage industry, fees are typically made two ways: Up front, loan origination fees called points, and yield spread premiums called rebates. Points (which each equal one percent of the loan amount) are added to a loan when it’s originated and become part of the monthly payback. Points typically vary with each lender and range from one to three in most transactions. For example, a $300,000 loan refinanced with 2 points would have $6,000 added to the loan balance so that the amount actually financed would be $306,000.
Fees are also earned using rebates. They work like this: if rates on a given day are at 5.375% at a cost of 2 points then at 5.875%, a no point loan could be taken out by the borrower. Using our example from above, the loan amount would still be $300,000. The loan officer doing the loan would actually receive a rebate of around 2 percent from the wholesale banker for performing the loan because the interest rate is above the norm (referred to as the par rate).
Making the Comparison
So looking at our example above, which method makes more sense?
The loan with points would have a balance of $306,000 at 5.375 percent and the monthly payment on a 30-year fixed rate would be $1713.51. The no point loan would still have a balance of $300,000 but at an interest rate of 5.875 percent and a monthly payment of $1774.61.
The difference between the two loans is $61.10. The loan with points would have a higher initial loan balance but with a payment that is $61.10 less than the loan with no points.
Calculating the break-even point
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To determine which loan option is best, the first thing you should do is calculate the break-even point between the two loans. In our example, the loan with the points added-on would have a lower payment by $61.10 but at a cost of $6000. Divide the cost ($6,000) by the monthly savings ($61.10) and this will give you the break-even point between the two loans: $6000 divided by $61.10 equals 98.2 months or 8.1 years. This is the time it will take to recoup the costs added to the loan with up-front fees. If you live in a home less than 8.1 years, the no cost option would be better. If you live in a home for over 8.1 years, you will start to reap a benefit from the loan where the fees were added up-front after 8.1 years.
Which is Right for You?
That’s a question only you can answer. If you believe you’ll live in a home less than the break- even point, you may want to consider the no cost option. If the home is your dream home and you’re convinced you’ll live in it till it’s paid-off, then you might choose the fee-based loan. An important thing to remember is that if interest rates were to drop significantly during the break-even period, you could refinance again and do another even lower rate loan without fees. A good bank or loan officer should clearly state both options to you up-front and you and only you, can make the decision for what’s best.
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