Show Standard-Examine- Sunday June 5 1988 r 3E BusinessReal Estate Banks spruce up mortgages Gimmicks should be examined National lenders ing to drum up more business are offering borrowers programs Real Estate mortgage try- with all kinds of bells and Watch whis- tles If a real estate agent steers you to such a program it might be worthwhile to compare the bottom line with the plain vanilla mortgage available from local banks and S&Ls Prominent among those with special offers is CitiCorp which uses words like “exclusive” “outstanding” and “superior” to de- scribe its MortgagePower Such hyperbole is program enough to make borrowers wary from the outset Under MortgagePower Citicorp guarantees a loan decision within 15 business days after all the necessary paper work is completed and it has a streamlined process for getting the paper work done Citicorp has faced strong criticism in the industry however for an unusual feature of the program Real estate agents who take part in the program sometimes charge borrowers a fee for the privilege of taking out a loan from Citicorp under the “exclusive” MortgagePower You might think that customers would object to paying for this privilege but under MortgagePower they might not The reason is that Citicorp has thoughtfully reduced the usual 1 percent origination fee lenders generally charge on mortgages Critics of MortgagePower say this amounts to Citicorp indirectk ly paying real estate agents a to steer customers to its doors which is illegal Citicorp replies to these charges by noting that real estate agents can charge a fee no matter which lender they they usually don’t) Citicorp also notes the US Department of Housing and Urban Development has no objection to this plan GMAC Mortgage another national lender has come up with a program similar to MortgagePow- kick-bac- recom-mend(thou- Air Force mirahrniqjMl! &frIEs Mortgage rates and points (including loan origination fees) for financing offered by lenders Conventional FHA Conventional fixed fixed fixed Lender Crossland Mortgage 825-168- First Security Bank Moore Financial Services 626-954- MountainWest savings 105 4 1 S 105 627-311- 5 6216060 Ogden 1st Fed Savings 621-010- 05 0 j 20pt 105 1 15 pt 1 ’ 025 1 00 20 pt 775 20 pt 725 1 5 pt 20 20 pt 10875 250 pt 10 pt750 1 0375 20 pt 15 pt: 725 1 5 20 pt 15 pt 6875 pt 10625 740 22 pt 153 pt 1033 16 pt 2375 ptAlQ75 110 10pt 1 075 213 pt ARM 0 25 105 105 Average rates 15 pt 2875 pt Northern Utah: IS-ye- ar 30-ye- ar 30-ye- ar in 1055 10 pt 15 pt: pt 105 'Adjustable rate mortgage terms and rate caps vary from tender to tender Each point equals 1 percent of the loan amount and is required as part of closing costs Pamela Reeves Scrpps Hcmatd Veivs Service er but without the Realtor’s fee or reduced origination charge GMAC’s program called ACCEL offers a loan commitment after 14 working days and easy documentation for those who put 20 percent or more down on a house As an additional lure GMAC offers mortgage borrowers a discount on some General Motors cars Both programs might appeal to people with good credit histories who get annoyed with the endless documentation many lenders require If you make a down payment of 20 percent or more GMAC requires only a bank statement showing you have money for the down payment W-- 2 forms showing you have enough income to pay the monthly mortgage and a telephone check to your employer to make sure you have a steady job Citicorp offers similar benefits to borrowers who put as little as 10 percent down Because business is fairly slow now in many parts of the country such programs are likely to proliferate In a shrinking market lenders have to make more noise to keep profits up However it will pay home buyers to keep the bottom line in mind and not get distracted by offers that will be of little value in the long run In a slow market any competent lender can get a loan applicant to closing quickly So the key questions to ask come back to plain vanilla: What is the interest rate? How does it compare to that being offered by others in town? What are the total closing costs including points and fees? Can I lock in the mortgage rate and for how long? Standard-Examine- 544-054- 2 Standard-Examine- Dream of single-famil- y home losing its appeal The romance of living in a home complete with a mythical white picket fence surrounding a large suburban yard won’t be as passionate during the next decade Instead more and more Americans will have an infatuation with apartments condominiums duplexes townhouses and flats And they’ll be in inner cities or close-i- n suburbs These are the predictions of housing experts who have taken a peek into how people will live in the 1990s — based on changing demographics and life styles High density multifamily housing is “tne wave of the future” said architect Barry Berkus Berkus told delegates at a recent Pacific Coast Builders Convention that homeowners in San Francisco and Los Angeles for example will find favor with apartments and condominiums built over shopping centers and commercial strips For the past two years there has been a drastic drop nationwide in the amount of new multifamily housing units But there is little mystery why living will prove popular in the next decade according to Berkus real estate consultant Sandy Goodkin and interior designer Carole Eichen They said the incredibly skyy rocketing price of single-- family high-densi- ty single-famil- homes will lure many potential buyers to less expensive attached housing Urban areas or close-i- n suburbs will continue to attract owners frustrated with long commutes Eichen said the challenge of attached home living is for developers to make the units “feel like y a home” with stylaccessories and artwork ing And she said “redevelopment in the more densely populated urban and metropolitan areas will be one of the more lucrative markets to thrive” The new home dwellers will cut across all age economic and ethnic barriers Berkus said graying Americans want to live in cities closer to their children and grandchildren Others are returning to cities because of what he called “the urbanization of suburbia" and its frustrating traffic choked arteries “Time has become incredibly important” to working men and women who find little appeal in spending their weekends making home repairs and mowing the lawn said Goodkin executive director of Peat MarwickGoodkin Real Estate Consulting Group in San Diego Goodkin has devised a whole new vocabulary for the homebuy-e- r of the 1990s — from the “burnouts” to the “Frequent Frysingle-famil- ers” The “burnouts” are workaholics Scnpps Howard News Service In a move calculated to reduce expenses the Air Force has proposed selling 13 factories that it owns across the country The list includes the 67 million square foot Fort Worth Texas plant where General Dynamics makes the 6 Falcon fighter plane and a group of buildings comprising nearly 3 million square feet at Tulsa Okla occupied by McDonnell Douglas and Rockwell International Such plants that are government-owned and contractor-operate- d are called GOCOs Historically they have been operated at no rental cost to the contractor The arrangements grew out of mobilization efforts in the World War II era The government took the position then that it was in the national interest to furnish GOCO plants Recently the Defense Department called for a reduction in the F-1- This information is current as of May 27 1988 and is provided by Mortgage Data Inc (MDI) It is provided for the general information r of the readers of the and is not to be reprinted or used oommerciafy without written consent of MDI MDI does not warrant or guarantee the accuracy of the information Publication information: Contact r graphic Scripps Howard News Service wants to sell 1 3 factories no-co- st who have found that the “rat race is too much for me" They want freedom from pressure and “a terrific townhome” The “Saavy Sage” is over 50 years old a romantic and traditionalist who thought “attached housing was for poor people" After working hard to pay off a single family home the saavy sage is ready for a fabulously rehabbed brownstone found in Boston or Philadelphia The “Aesthetic” is a “snob” who loves fashion doesn’t mind taking risks and doesn’t need “to please anyone but myself” The aesthetic would like to transplant Aspen or Tahoe into a city landy scape but would settle for a townhome or highrise in New York or San Francisco five-stor- The “Urban Packrat” is a pioneer a visionary who loves and demands a nearby market library browsing and walking places “Show me an ancient attached home and I’ll show you a love affair about to begin” is the creed of the urban packrat And the “Frequent Fryer" is a o young person who “works my buns off” nourishes on fast foods and has little time for painting and mowing The frequent fryer “needs a pad more than a large space” — a moderate priced condo or apartment — before eventually buying a home always-on-the-g- amount of government-owne- d property and equipment held by contractors An audit finished last September indicated that such property had a value of $513 billion “The main thing at issue here is money” said C Mike Wallace a spokesman for the Air Force Aeronautical Systems Division “For the 13 plants involved our planners see the need for about 1500 projects in the next five years to repair and upgrade the properties The projects could cost $1 billion “Our maintenance budget for the five years calls for expenditure of $200 million” The first priority is to try to sell a property to the contractor that occupies it said Wallace In reply to the sale offer General Dynamics sent a letter saying that the company was willing to explore the issue said Chris Schildz a company spokesman General Dynamics occupies two plants owned by the Air Force — the Fort Worth plant and a plant of 16 million square feet used by its Convair division in San Diego McDonnell Douglas’ response regarding the Tulsa property was along the same lines — that the company will study the matter CAREER NIGHT Come explore the career opportunities in the Financial Service Field 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