The Biggest Mortgage Mistakes And How To Avoid Them

As mortgage rates continue to hit record lows, homeowners are scrambling to refinance to take advantage of the opportunity to lock in lower rates.

And soon, even more will be on the hunt, thanks to President Obama.

With an executive order unveiled earlier this week, he’s going to make it easier for underwater homeowners to refinance their mortgages.

The changes will open refinancing to lots of people with a mortgage backed by Fannie Mae or Freddie Mac — no matter what they owe — so long as they are current on their payments, have no late payments in the last six months, and have not made more than one late payment in the past year.

From this Oct 24th press release:

This program will continue to be available to borrowers with loans sold to (Fannie Mae and Freddie Mac) on or before May 31, 2009 with current loan-t0-value (LTV) ratios above 80 percent.

The new program enhancements address several other key aspects of HARP including:

• Eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers;

• Removing the current 125 percent LTV ceiling for fixed-rate mortgages backed by Fannie Mae and Freddie Mac;

• Waiving certain representations and warranties that lenders commit to in making loans owned or guaranteed by Fannie Mae and Freddie Mac;

• Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the Enterprises; and

• Extending the end date for HARP until Dec. 31, 2013 for loans originally sold to the Enterprises on or before May 31, 2009.

Fannie May and Freddie Mac will be issuing details about the HARP changes to mortgage lenders and servicers by November 15. But whether you qualify for that program or not, if you’re considering a refi…

Mortgage traps to avoid

1. Adjustable rate mortgages. These types of products probably contributed to the housing crisis. People were lured by the low initial rates and were unprepared for their dramatic rise later. While these are terrible products for long-term borrowers, they can make sense when you know that you’ll be moving before the the fixed rate expires. For example, our family just refinanced at an amazing rate of 2.75 percent. We selected a five-year fixed rate because we’re planning to move within five years. It’s a calculated risk, and if we stay longer, we know our rate will rise.

2. Interest-only mortgages. The whole point of a mortgage is that you pay off the principal of your home over time. Even if your house’s value doesn’t appreciate, you’ll still build equity. With an interest-only product, you accumulate no equity and tread water indefinitely.

3. Pre-payment penalties. The worst type of mortgage you can get is one that penalizes borrowers for paying off their mortgage early. It’s terrible when borrowers realize, too late, that their loans contain such a provision. Fortunately, pre-payment penalties are now illegal in some states and less common in all states. Still, it’s something you should ask about and avoid.

How to find the right mortgage

1. Select the right company. Too often, home buyers are pressured by their real estate agent to use their preferred loan originator. Even if you have a great working relationship with your agent, realize that you’re paying the mortgage, not the agent. Shop around for the best rates and the lowest fees using tools like those we have here.

2. Choose the best product. Enter a mortgage or a refinance with a clear goal in mind. Your mission can be to reduce your monthly payments, increase your equity growth, or take out cash. Your individual goals (and the length of time you plan on owning your home) will dictate the type of mortgage you need.

3. Read everything. It’s easy to dismiss the reams of fine print that accompany every mortgage or refinance. Remember that nearly every tale of mortgage disaster includes a salesperson’s verbal assurances that contradict the documents. The best practice is to ask for a copy of the closing documents in advance so that you can take as much time as you need to understand all of it, rather than try to undo what you have already signed. If you don’t have the time or have trouble understanding anything, hire a lawyer. It’s worth the money.

By carefully considering all your options, and taking the time to read through each document, you can ensure that your mortgage benefits you and your family – not just banks and real estate agents.

This post originally appeared at Money Talks News

The 15 Most Expensive NYC Banker Homes

Image: 15cpw.com

Multiple fireplaces, a vast library constructed from wood of a single walnut tree, servants quarters, 10,000 square feet indoors, multiple terraces... just an average home for Wall Street execs.

We've picked out 15 of the most expensive banker homes in Manhattan.

Adam Sender's $8.1 million penthouse at 15 Broad Street

The founder of Exile Capital Management bought the top floor at Downtown by Philippe Stack in 2007 (the development includes the old JP Morgan building -- front -- and the 15 Broad Street tower -- back). The penthouse includes 6,300 square feet of living space plus three terraces. We expect Sender has filled it with his vast contemporary art collection and lots of computer monitors.

Inside Sender's Penthouse*

*Photo from previous owner via New York Residence

Jamie Dimon's (est.) $10 million double apartment at 1185 Park Ave

The CEO of JP Morgan combined a $4.9 million apartment with another he already owned. We assuming his spread cost around $10 million in 2004 -- and more today. One unique feature is a sound-proofed area where Jamie listens to Frank Sinatra at full volume.

Source: Last Man Standing

Richard Perry's $11 million Sutton Place penthouse

Perry Capital's founder bought the full floor penthouse at 1 Sutton Place in 2000. The interior is a modern art dream and was featured in Vogue magazine. Note his Jeff Koons sculpture on the roof.

Source: Curbed and Cityfile

Inside Perry's Penthouse

Image: Vogue

Source: Vogue

Inside Perry's Penthouse

Image: Vogue

Source: Vogue

Robert Kelly's $14.7 million Lenox Hill townhouse

BNY Mellon's CEO bought this five-story 19th century mansion (the reddish one) in 2007. Kelly renovated the townhouse with various trimmings of luxury, like library shelves built with wood from a single walnut tree. A prominent architectural feature -- which you can't see -- is a stunning two-story bronze window facing an inner garden.

Source: Blockshopper and StreetEasy

Vikram Pandit's $18 million palace at the Beresford

Citi's CEO bought the apartment in 2007 from the late Tony Randall. Pandit's pad has four bedrooms, eight walk-in closets, a 21-foot eat-in kitchen, private elevator, and 20 parkside windows.

Source: NY Observer

Inside Pandit's Palace*

*Photo from previous owner, Tony Randall

Source: NY Observer, Berg Properties

Inside Pandit's Palace*

*Photo from previous owner, Tony Randall

Source: NY Observer, Berg Properties

Jim Chanos' $20 million triplex at East 75th

Chanos bought the penthouse of a 1930 mansion in 2008. It has 7,800 square feet and 3,600 square feet outdoors, overlooking Central Park, and a master suite with two fireplaces.

Source: Blockshopper and NY Observer

Inside Chanos's Penthouse

George Soros' $24 million duplex at 1060 Fifth Ave

As part of a 2005 divorce settlement, the legendary financier paid his ex $24 mil to keep this gem.

Source: Cityfile

Lloyd Blankfein's $27 million four bedroom at 15 Central Park West

Image: 15cpw.com

Goldman's CEO bought into the brand-new 15 CPW skyscraper in 2007.

Source: Cityfile

Inside Lloyd's Lair*

Image: 15cpw.com

*Photo of a typical top-shelf apartment at 15 CPW

Kovner's $27.5 million fifth avenue fortress (including $10 million in renovations)

Caxton Associates founder Bruce Kovner bought this beautiful Georgian mansion in 1999 and converted it to a science fiction fortress.

From Cityfile: The home features a two-story master bedroom, more than a dozen baths, a book vault, and a media room that is entirely soundproof. The secretive billionaire is also believed to have installed a lead-lined "safe room" on the fourth floor of his townhouse that's capable of protecting Kovner in the event of a dirty bomb or chemical weapons attack.

Dubin's $30 million mansion at 1040 Fifth Ave

The co-founder of Highbridge Capital Management bought Jackie Kennedy Onassis's old apartment in 2006. Taking up all of the fifteenth floor, the apartment has four bedrooms, two dressing rooms, a staff room, a library, living room, dining room, conservatory, two terraces, three fireplaces, five and a half bathrooms and a wine room.

Source: Cityfile and pinkpillbox

Inside Dubin's Mansion*

*Photos from the David Koch era, who owned the apartment after Jackie

Inside Dubin's Mansion*

*Photos from the David Koch era, who owned the apartment after Jackie

Stephen Schwarzman's $30 million triplex at 740 Park

Blackstone's CEO has 11 fireplaces, 37 rooms, 43 closets, a gym, sauna, steam room, billiards room, screening room, and servants' quarters. He bought the place in 2000, so it's worth much more now.

Source: Cityfile

Steve Feinberg's $34.75 million Egyptian mansion (includes $15 million in renovations)

The notorious secretive founder of Cerberus Capital Management's said this at a shareholder meeting: “We try to hide religiously. If anyone at Cerberus has his picture in the paper and a picture of his apartment, we will do more than fire that person. We will kill him. The jail sentence will be worth it.”

Well... Feinberg bought the former Egyptian mission to the U.N. in 2003 for $19.75 million. It includes a movie theater, sauna, and roof garden. He has attracted plenty of tabloid attention for blowing over $15 million on bungled renovations.

Source: NY Observer and Cityfile

Inside Feinberg's Mansion

From Gillis Architects

Inside Feinberg's Mansion

From Gillis Architects

Sandy Weill's $42.4 million penthouse at 15 CPW (lower tower)

Weill bought this 6,744 square footer (with 2,000 square feet of terrace) in 2007, right after pulling out of Citi.

Source: Cityfile

Daniel Loeb's $45 million penthouse at 15 CPW (upper tower)

Third point LLC founder Daniel Loeb bought one of the very best apartments at 15 CPW in 2008. His 10,700 square foot pad features 360-degree views, servant's quarters, an expansive deck, and a library.

Source: Cityfile

Phil Falcone's $49 million double mansion at West 67th Street

Hedge funder Falcone bought this awesome mansion in 2008 from Penthouse publisher Bob Guccione, who had installed gaga features like marble columns with his face carved in them.

Source: Curbed

Inside Falcone's Villa*

*Photo from Brown Harris Stevens realty catalogue before Falcone moved in.

Inside Falcone's Villa*

Image: Corcoran

*Photo from Brown Harris Stevens realty catalogue before Falcone moved in

Dennis Hopper House !!! Dennis Hopper's Venice Loft Is Relisted With A $500,000 Price Chop

Erika Riggs Email | URL Erika Riggs is a contributing writer for Zillow.com. Recent Posts 6 Celebrities Who Can't Sell Their Homes Whatever Happened To The Homes Made Famous By Reality TV? Top Gun House Waiting For Its Next Role Weekly Real Estate Roundup — 10/29/11 Holy Little House for Sale Insider’s Guide to Success with Short Sales

Dennis Hopper’s home has hit the Venice real estate market again, this time with a fresh look and price.

According to property listing information, the home of the late actor, filmmaker and artist received new updates that were completed by architect Brian Murphy.

This 4,900-sq ft Hopper home was part of Hopper’s compound that included three separate, free-standing lofts that were designed by Frank Gehry and were known as the Three Little Pigs.

Click here to see the home >

Hopper was best known for directing and appearing in “Easy Rider,” but was also an accomplished photographer and had an impressive modern art collection. He passed away in May 2010 from prostrate cancer. His home was then listed in July 2010 for $6,245,000. The price was chopped in late 2010 to $5,800,000 before the listing was removed.

The home was re-listed in July 2011 and recently had another price chop. Hopper’s estate is now down $500,000 to $5,995,000. Although the compound has 10,125 square feet of living space, median Venice home values have dropped 7.5 percent year-over-year.

The industrial-style home includes 7 beds and 9 bathrooms and features high ceilings, exposed beams, floating staircases and enormous windows. Other home amenities include a lap pool and pool house, and convenient location near Main Street and Abbot Kinney.

This post originally appeared at Zillow.

Exterior

Image: Zillow

Exterior

Image: Zillow

Family Room

Image: Zillow

Family Room

Image: Zillow

Front Door

Image: Zillow

Kitchenette

Image: Zillow

Living Room

Image: Zillow

Living Room

Image: Zillow

Living Room

Image: Zillow

Living Room

Image: Zillow

Comprised of three free-standing called "The Three Little Pigs."

Living Room

Image: Zillow

Loft

Image: Zillow

Loft Kitchen

Image: Zillow

Loft Living Room

Image: Zillow

Loft Living Room

Image: Zillow

Loft

Image: Zillow

Media Room

Image: Zillow

Patio

Image: Zillow

Patio

Image: Zillow

Patio

Image: Zillow

Stairs

Image: Zillow

Stairs

Image: Zillow

Street

Image: Zillow

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