Energy Efficient Mortgages….

Before we delve into Energy Efficient Mortgages (EEMs), I want to briefly  highlight our service, competitive rates & fees. Due to strict new Loan Officer compensation and regulatory rules, many lenders suffered a 66% drop in profitability in the first quarter pushing them to drastically reduce staff and costs to remain profitable. We continue to follow our strong business model of keeping overhead costs extremely low and in turn passing those savings on to our customers. Trulending Mortgage is in the top 10th percentile as it relates to competitive interest rates and closing costs in California. This combined with our superior service, strong product line, and fast underwriting turn times (currently at 24-48 hrs) makes us extremely competitive, especially with the larger banks.

We relish the opportunity to compete for your business. If you are in the market to purchase a new home or refinance your current mortgage(s), please call us to obtain a quote. Interest rates are still extremely low, but with the Feds bond purchase program (QE3) expiring at the end of June, interest rate volatility is anyone’s guess.

Energy Efficient Mortgages (EEMs)

The availability of EEM’s is timely since energy costs are on the rise while consumers’ disposable income, unfortunately, remains flat. An EEM helps homeowners save money on utility bills
by enabling them to finance 100% of the cost of their energy efficient features to a new FHA purchase or FHA refinance mortgage. The EEM does not affect qualifying or down payments and
will not delay closing. Please call us for more information… The typical “Big 5” improvements are

1. Central Heating and Air
2. Dual pane windows
3. Insulation
4. Water heaters
5. Infiltration (Weather stripping and
   caulking)

SERVICE GUARANTEE:
WE GUARANTEE A SMOOTH LOAN ORIGINATION PROCESS OR WE WILL REFUND UP TO $500  OF YOUR CLOSING COSTS

We appreciate the opportunity to work with you on your next refinance or home purchase transaction. Please pass this along if you think we can help any of your close friends or family.

Mortgage Rates ↓ Stocks, & Housing

There are two things we tend to buy less of when the price goes down….do you know what?

Most of us like a bargain when we go shopping and feel much better buying things when they are 10%-20% off or “Buy one get one free or at half off.” But, there are two things that always buck this trend of buying when prices go down. What’s even crazier is that, with these two things, people tend to buy more of after their price has goes up rather than down. Do you have a guess on what they are?

How about real estate and stocks?

According to the most recent S&P/Case-Shiller Home Price Index, home prices on average across the U.S. are back to their summer of 2003 levels, meaning, they’re the cheapest they’ve been in about eight years. That said, are we clamoring to buy homes? No. In February, new home sales in the U.S. fell to a record low. Yet, during the boom times when prices were at their highest — people were buying homes like crazy and “flipping” them and we all know how that story ended.

The same is true when it comes to stocks, historically people tend to stay away from stocks when prices are down. For example, how many of us were buying more stocks as the market was declining to its recent low in March 2009? Many feel comfortable buying stocks when their prices were zooming?

These two examples suggest that housing and stocks are two major categories that defy traditional expectations.Buying these may be a smart long-term plan.

Mortgage rates dipped for the second week in row on news of weak global and US Economic news

Current Conforming Rates–Primary residences only (Pmyts based on a average loan amount of $250,000) for a historical perspective on rates please visit my blog

Loan Program	Monthly Pmyt	Rate	APR	Points
30YF	$1229	4.25%	4.54%	0
20YF	$1531	4.125%	4.37%	0
15YF	$1802	3.625%	3.92%	0
5/1 ARM	$1037	2.875%	3.12%	0
7/1 ARM	$1087	3.125%	3.37%	0
FHA-30YF	$1229	4.25%	4.37%	0
FHA-15YF	$1833	3.875%	3.98%	0

Current High Balance Rates – (Pmyts based on a average loan amount of $550,000)

30YF	$2746	4.375%	4.62%	0
15YF	$3999	3.75%	3.87%	0
5/1 ARM	$2318	2.875%	3.12%	0
7/1 ARM	$2431	3.375%	3.62%	0
FHA-30YF	$2705	4.25%	4.37%	0

We appreciate the opportunity to work with you on your next refinance or home purchase transaction.  Please pass this along if you think we can help any of your close friends or family.

Another opportunity? Rates Decline again

 This past week, interest rates declined dramatically to their lowest level since December 2010 as fears that the European debt crisis could get worse with the increased threat of default by Greece and Spain. Investors fled to safety and purchased US Treasury bonds which drove yields lower that ultimately caused mortgage rates to drop.

For those of you who may have missed the opportunity to refinance and/or purchase a home last year, this is a good a time get your paperwork in order and lock in the rates.

To put this in perspective, every .25% drop in rate (Ex: 5% to 4.75% on a $250,000 mortgage) will reduce your payment by $38 per month or $456 annually. Reducing your current rate by 1% point (Ex: 5.75% to 4.75%) will reduce your payment by $154 per month or $1848 annually. Interest savings over the life of the loan is close to $55,000.

 Need assistance?

Few months back I mentioned three great programs specifically designed for those who don’t have 20% down for purchasing a house, currently own a house or investment property that you want to refinance but don’t have enough equity, or the house is considered “underwater”(When you owe more than the house is worth). Please click on the link to my email on my blog https://trulending.wordpress.com/2011/01/10/three-new-programs-you-should-consider/

Current Conforming Rates–Primary residences only (Pmyts based on a average loan amount of $250,000) for a historical perspective on rates please visit my blog
Loan Program	Monthly Pmyt	Rate	APR	Points
30YF	$1248	4.375%	4.54%	0
20YF	$1548	4.25%	4.37%	0
15YF	$1818	3.75%	3.92%	0
5/1 ARM	$1054	3.00%	3.25%	0
7/1 ARM	$1088	3.25%	3.37%	0
10/1 ARM	$1175	3.875%	4.12%	0
FHA-30YF	$1229	4.25%	4.37%	0
FHA-15YF	$1833	3.875%	3.98%	0

Current High Balance Rates – (Pmyts based on a average loan amount of $550,000)
30YF	$2786	4.50%	4.62%	0
15YF	$3999	3.75%	3.87%	0
5/1 ARM	$2356	3.125%	3.25%	0
7/1 ARM	$2469	3.50%	3.62%	0
FHA-30YF	$2705	4.25%	4.37%	0

 
Please visit my blog @ https://trulending.wordpress.com for more articles and information on other programs designed to help you refinance or purchase a home.

We appreciate the opportunity to work with you on your next refinance or home purchase transaction.  Please pass this along if you think we can help any of your close friends or family.

Sincerely,

Lending to get tougher? Plus rates…

We all think current lending standards are tough… Well the Government is now proposing even tougher mortgage lending guidelines for 2012.  As you may know 95% of loans originated are purchased by Government-Sponsored Entities (Fannie Mae and Freddie Mac) since there are not many “Private” money lenders like we had during the “bubble” years. We think these new rules maybe a way for the Government to wind down the GSEs and significantly reduce their risk. Unless Wall Street and other private lenders fill the void, we will be subjected to these tough rules next year. The mortgage community is preparing to fight these new proposals.
 
Here’s what’s being proposed, if we don’t meet these standards we are looking at 2%-3% higher rates. That calculates to 6%-7% in today’s market. 

• Borrowers who do not have at least 20% down will simply not have access to the lowest rates. Today you can still get low rates with 3.5% to 5% down
• Strict mandatory debt to income ratios. Your total household debt cannot exceed 36% of income. Currently borrowers are allowed to go up to 45% on conventional and up to 50% on FHA loans
• Want to refinance your home? You will need a minimum of 25% equity and 30% if you intend to pull cash out. The proposal does not even opine about investment properties!  
• Have any late payments? No approval – period.

Interest rates improved this week as Standard & Poor’s announced that US debt maybe downgraded to “Negative”…. Here are today’s rates.

Current Conforming Rates–Primary residences only (Pmyts based on a average loan amount of $250,000) for a historical perspective on rates please visit my blog
Loan Program	Monthly Pmyt	Rate	APR	Points
30YF	$1285	4.625%	4.79%	0
20YF	$1581	4.375%	4.62%	0
15YF	$1818	3.75%	3.92%	0
5/1 ARM	$1054	3.00%	3.25%	0
7/1 ARM	$1122	3.50%	3.69%	0
10/1 ARM	$1193	4.00%	4.25%	0
FHA-30YF	$1248	4.375%	4.45%	0
FHA-15YF	$1833	3.875%	3.98%	0

 

Current High Balance Rates – (Pmyts based on a average loan amount of $550,000)
30YF	$2869	4.75%	4.92%	0
15YF	$4033	3.875%	4.00%	0
5/1 ARM	$2393	3.25%	3.40%	0
7/1 ARM	$2508	3.625%	3.87%	0
FHA-30YF	$2786	4.50%	4.62%	0

 
We appreciate the opportunity to work with you on your next refinance or home purchase transaction.  Please use the Social Media buttons above to pass this along if you think we can help any of your close friends or familySincerely,

 

Housing Market & Mortgage Rates

I recently attended a private presentation on the housing market by renowned Economist Dr Edward Leamer of the UCLA Anderson School of Management. His focus was on how the groundwork was established for the start of the decade long housing boom to the ultimate meltdown and the lessons learned. The “easy credit” and the market’s insatiable appetite for mortgage-backed securities fueled the boom that ultimately went bust. On the flip side, it is quite remarkable to currently be in an environment where home prices are at or near the bottom coupled with historically low interest rates . . . . the “perfect combination”. Like many experts, he foresees interest rates moving up this year but home values to remain depressed until early 2012. One key point he discussed was the rapid growth in the rental market increasing demand for Multi family housing (1- 4 units) and decreasing demand for single family housing

It is a good time to buy your first home or that investment property you have been considering (Get Pre-Approved it only takes minutes) or if you are thinking of refinancing your current loan….jump on it.  

Interest rates ticked up this week on strong corporate earnings. Outlined below are today’s rates. We continue to expand our product offerings and recently added Super Jumbo products up to $20,000,000 including fixed interest only loans.

Current Conforming Rates–Primary residences only (Pmyts based on a average loan amount of $250,000) for a historical perspective on rates please visit my blog
Loan Program	Monthly Pmyt	Rate	APR	Points
30YF	$1304	4.75%	4.79%	0
20YF	$1581	4.50%	4.62%	0
15YF	$1833	3.875%	3.92%	0
5/1 ARM	$1070	3.125%	3.25%	0
7/1 ARM	$1140	3.625%	3.69%	0
10/1 ARM	$1211	4.125%	4.25%	0
FHA-30YF	$1248	4.375%	4.45%	0
FHA-15YF	$1833	3.875%	3.98%	0

 

Current High Balance Rates – (Pmyts based on a average loan amount of $550,000)
30YF	$2910	4.875%	4.92%	0
15YF	$4102	4.125%	4.25%	0
5/1 ARM	$2413	3.375%	3.50%	0
7/1 ARM	$2547	3.75%	3.87%	0
FHA-30YF	$2786	4.50%	4.62%	0

  We appreciate the opportunity to work with you on your next refinance or home purchase transaction.  Please use the Social Media buttons above to pass this along if you think we can help any of your close friends or family

Mortgage rates on the move again?

Is political unrest good for rates? The short answer is yes… In times of financial or political unrest, investors tend to move their money from the more volatile risky investments (stocks) to more stable investments such as bonds. A flood of investments into bonds will drive down the yield and mortgage rates tend to move in-step with bond yields. We know emotional investors’ flight-to-safety, will just as quickly move back to stocks when the market volatility settles back down. The good news is rates dipped over the last couple of weeks but we believe this is temporary and rates will to continue to rise as the economy expands and the political unrest that has gripped parts of the Middle East begins to subside. 

It is certainly a good opportunity to move on that refinance or new home purchase you have been considering. Take advantage and lock in your deal as quickly as possible 

I would be glad to run specific scenarios for you so that you may decide whether or not it makes financial sense to move forward. High Balance loan rates ($418,000 – $729,750) are competitively priced too.

Current Conforming Rates-Primary residences only (Pmyts based on a average loan amount of $250,000) for a historical perspective on rates please visit my blog
Loan Program	Monthly Pmyt	Rate	APR	Points
30YF	$1304	4.75%	4.786%	0
20YF	$1581	4.50%	4.567%	0
15YF	$1833	3.875%	3.987%	0
5/1 ARM	$1088	3.25%	3.323%	0

SERVICE GUARANTEE:  
WE GUARANTEE A SMOOTH LOAN ORIGINATION PROCESS OR WE WILL REFUND UP TO $495 OF YOUR CLOSING COSTS

We appreciate the opportunity to work with you on your next refinance or home purchase transaction.  Please pass this along if you think we can help any of your close friends or family.

 

Is now the right time?

To refinance or not to refinance? To buy or not to buy? These are two key questions everyone is asking these days. The answer is clearer today than 4 months ago when interest rates reached historic lows. when the federal reserve rolled out a plan to infuse $600B into the credit markets industry experts figured rates were likely to decline further, but with the Economy showing signs of strengthening and job creation (Unemployment rate now at 9%) on the rise, interest rates have begun their upward climb.

Whether considering a new purchase or refinancing of your existing loan, I would be glad to run specific scenarios for you so that you may decide whether or not it makes financial sense to move forward.

Here are three reasons to consider if you are thinking of refinancing or buying. 

1. The high balance loan limit ($418,000-$729,000) is set to expire Sept of this year.  Unless the deadline is extended, the cost of loans from ($418,000-$729,000) range will get more expensive as private investors will “fill the gap”
2. Refinancing makes sense for just about anyone with a rate above 5.25%
3. Home prices have bottomed out in desirable locations. If you are looking for a investment property or thinking of buying a home, its the right time. 

Current Conforming Rates-Primary residences only (Pmyts based on a average loan amount of $250,000) 

Loan Program	Monthly Pmyt	Rate	APR	Points
30YF	1323	4.875%	4.940%	0
20YF	$1598	4.625%	4.725%	0
15YF	$1880	4.25%	4.325%	0
5/1 ARM	$1140	3.625%	3.723%	0

SERVICE GUARANTEE:  
WE GUARANTEE A SMOOTH LOAN ORIGINATION PROCESS OR WE WILL REFUND UP TO $495 OF YOUR CLOSING COSTS

We appreciate the opportunity to work with you on your next refinance or home purchase transaction.  Please pass this along if you think we can help any of your close friends or family

Three new Programs you should consider

These programs were specifically designed for those who don’t have 20% down for purchasing a house, currently own a house or investment property that you want to refinance but don’t have enough equity, or the house is considered “underwater”(When you owe more than the house is worth). These programs maybe just the solution, so give us a call anytime for more information.  Also stay tuned for two new low income home purchase programs coming soon..

Enhanced Private Mortgage Insurance Program (PMI):

This new program offers powerful qualifying tools for those who can’t afford 20% down on a home purchase. PMI makes more sense now more than ever as home prices and mortgage rates are at historic lows, so you can afford more with less down. We have rare Platinum status with our PMI partner and offer 4 different MI options. Here are some benefits.

• Buy your dream home sooner with as little as 3% down of your own funds97% 
• PMI premiums are tax deductible  
• Flexible premium payment options are available- Split, Lender paid, and borrower paid
• Monthly premiums as low as $50 based on loan amount and the best option for you
• Premium payments are temporary unlike FHA programs – MI can be canceled once your home reaches 80% LTV(20% equity)

HomePath Loan Program:

HomePath is a program offered by Fannie Mae specifically designed to move REO (Real Estate Owned/Foreclosure) homes in Fannie’s portfolio. If you are in the market to purchase a home (primary, second, or investment) there are plenty of REO properties to choose from. Find HomePath eligible properties by visiting www.homepath.com 

• No PMI Insurance
• No Appraisal
• Down payments as low as 3% (own funds not gifted) and upto 3.5% credit for closing costs

Home Affordable Refinance Program (HARP):

The goal of this program is to provide access to low-cost refinancing for responsible homeowners suffering from falling home prices. Let’s say your home is currently worth $300,000 and you owe $315,000 on your first mortgage. You can borrow up to $315,000 (105% of appraised Value) to repay and refinance your first loan. You can do this even if you have a second mortgage on the property.

• 680 minimum FICO
• Available for investment and second homes
• Appraisal maybe waived (restrictions apply)
• Max LTV 105% with no CLTV limits (Combined Loan To Value)

We appreciate the opportunity to work with you on your next refinance or home purchase transaction. Please pass this along if you think we can help any of your close friends or family.

Rates on the move…12/7/2010

Whether you are looking to buy a new home or refinance your current mortgage, there are three new programs you can’t afford to ignore. Stay tuned for more information in the coming weeks…. 

This past week rates rocketed up from their all-time lows a month ago based on some “good” economic news in the US and positive developments in the ongoing European sovereign debt crisis that soothed markets and led investors to reallocate funds from bonds into stocks driving bond yields up. Current rates are still extremely low in comparison with an average rate of 6% over the last ten years. Economic conditions can change in an instant. We strongly encourage all of our clients to get your loan applications approved and lock in these rates as soon as possible.

By the way our underwriting turn times are at 2 days compared to 3-4 weeks at big banks!

Current Conformng Rates (Pmyts based on a average loan amount of $250,000)
Loan Program	Monthly Pmyt	Rate	APR	Points
30YF	$1266	4.50%	4.52%	0
20YF	$1548	4.25%	4.34%	0
15YF	$1787	3.75%	3.83%	0
5/1 ARM	$1105	3.375%	3.42%	0

SERVICE GUARANTEE:  
WE GUARANTEE A SMOOTH LOAN ORIGINATION PROCESS OR WE WILL REFUND UP TO $495 OF YOUR CLOSING COSTS

We appreciate the opportunity to work with you on your next refinance or home purchase transaction.  Please pass this along if you think we can help any of your close friends or family.

Mortgage Rates (11/06/2010) and more….

Turn on your radio, TV, smart phone or iPad and you are likely to hear/see home loan rates are again at historic lows. How historic? Try almost 50 years! That’s right, not since the 60s have rates been this low and that means if you have a home loan, now is the time get a free loan review from us. As we have seen in the past, rates could change quickly based on economic news and market conditions.

You may be wondering – I just refinanced last year and my current rate is above 5%, does it make sense for me to refinance again?  I know a lower rate will give me a lower payment, but I’m not sure if it’s worth refinancing my mortgage again? Let’s talk numbers so you can make an educated decision…
 
For example purposes, let’s say you have a $250,000 balance on your loan and your interest rate is 5.375%.  Your current payment (principal and interest) is $1,400. You will pay a total of  $254,000 in interest over the life of the loan. If you were to lock in today’s rates (Our current rates) the grid below gives you an idea of how much you will save on average compared to your current loan terms. These rates are for conforming loan amounts up to $417,000. If you have a high balance loan (Up to $729,750) gives us a call for a rate quote, these rates are pretty close to the conforming rates.

 By the way our underwriting turn times are at 5 days compared to 3-4 weeks at big banks!

Current Rates
Loan Program	Monthly Pmyt	Rate	APR	Total Int Paid	Int Saved	Points
30YF	$1230	4.25%	4.37%	$192,745	-$61,228	0
20YF	$1499	3.875%	4.04%	$109,649	-$61,228	0
15YF	$1787	3.50%	3.70%	$71,697	-$182,276	0
5/1 ARM	$1070	3.125%	3.24%	$135,537	-$118,436	0
7/1 ARM	$1070	3.125%	3.24%	$135,537	-$118,436	0

 

There are a number of ways to make a mortgage refinance work in your financial favor.  Shortening the term or simply lowering your interest rate can result in immediate monthly savings and huge annual interest charge savings.  With so many options and so many different scenarios, its sometimes overwhelming. Give us a call and one of our experts can help and guide you through the process.

If you are in the market to buy a new home, please consider becoming Pre-Approved through Trulending prior to your home search as most Realtors now require a Pre-Approval letter prior to showing any properties.  If you need a knowledgeable Realtor, please call me and I can recommend one of our trusted colleagues who has a strong understanding of today’s complicated market place.