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.

Update from Trulending….

We constantly research the mortgage banking industry looking for competitive advantages and market niches to provide you with the best products and pricing available.  Our boutique approach to lending has been a successful business strategy as big banks continue to lose customers to us and other smaller efficient lenders.

 We are proud and excited to announce that we have forged new partnerships to expand our current product offering and provide you with even better rates and pricing by comparing our Retail (Direct lending arm) vs. our Broker (Wholesale lending arm). Some days Retail pricing is better than Wholesale and vice versa. We are now able to compare both sides and provide you the best rate and price available on that particular day. After all, your goal is to obtain the best rate at the lowest cost with the best customer service possible.

 What We Are Currently Working On?

We are considering a partnership with a “Portfolio Lender” for those loans that just don’t comply with Fannie Mae, Freddie Mac, or FHA guidelines. Portfolio lenders have their own guidelines and risk tolerances for loans that regular lenders, including big banks, don’t wish to purchase at this time. Stay tuned…..

 Interest Rates:

Interest rates are still at all time lows driven by global events and the sluggish US Economy. Recent positive economic news pushed rates up slightly this week from their lows – it doesn’t take much to reverse the current trend. Historical trends show rates take longer to go down but rise at a much faster pace. Contact us and we can quickly customize a Good Faith Estimate based on your needs before we move forward with an application.

 If your current interest rate is an adjustable or a fixed around five percent or above, it may make financial sense to refinance to a lower rate and save. If you don’t have  20% equity in your property; there are several programs (up to 100% LTV) that we can recommend including a “cash-in” refinance where you lock in today’s historic low rates by bringing the required funds to the closing table in order to cover the difference between your mortgage balance and the new loan amount.

 Purchasing a new home:

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 someone we have worked with before that knows and understands today’s complicated market place.

 Call us today for a no obligation free consultation. Our job is to educate and guild you through the process regardless of whether you choose to go with us or not. All we ask is for an opportunity to compete for your business.

 For our clients in California , don’t forget about the California tax credit of up to $10,000 for newly built homes, and up to a $10,000 tax credit for first-time homebuyer of existing homes. These credits were available beginning May 1 and be good through Dec. 31, 2010, or when funding is exhausted, whichever comes first.  

 SERVICE GUARANTEE 

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

 As always you will continue to receive industry expertise, highest level of integrity and service. 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.

“Cash-In” Refinances & Interest Rates

We have all heard of “cash-Out” refinancing but are you familiar with “cash-in” refinancing?  With a “cash-in” refinance, you get to lock in today’s historic low rates by bringing the funds “out of pocket” needed to cover the difference between your mortgage balance and the maximum loan amount you can qualify for on your new mortgage loan.  

While this isn’t a “new” concept, it is seeing renewed life in today’s mortgage market.  With interest rates this low, most people with mortgage rates above 5.25% would stand to benefit tremendously by refinancing into a rate around 4.375% – 4.625% (Conforming).  Over the past year, nearly a third of all borrowers who refinanced lowered their principal balances by putting money into the deal rather than taking it out.  We consider this prudent financial planning, and we encourage all of our clients with higher rate loans to consider a “cash-in” refinance loan.

Here are some additional reasons to consider a “cash-in” refinance:

• Earn a better return on your money with a lower rate. With savings accounts and other investments yielding little these days it makes sense to put some of your funds into your home, especially if you can knock a point or two off the mortgage rate. Paying down a mortgage is essentially a guaranteed rate of return in the form of savings.
• Avoid the higher rate: Typically high-balance loans between $418,000 and $729,750 are 1% point higher than conforming loans.  If it is feasible, a “cash-in” loan that takes the mortgage balance into the conforming loan limit will result in a much lower interest rate.
• Rebalance debt: Rates are much higher on investment properties. Consider a “cash-out” refinance on your principal residence and use that money to do a “cash-in” refinance on your second house or investment.
• Private Mortgage Insurance: Avoid mortgage insurance by moving your money into your mortgage. PMI insurance is required on loans with a loan-to-value ratio above 80%. It may make good financial sense to do a “cash-in” refinance if you can get your balance under the 80% threshold. Rates are so low it may make sense to have PMI and still save a ton of money on your mortgage.  PMI can be removed once you reach 80% LTV with an appraisal.

It’s a good time to review your mortgage options.  Give us a call, and we will be happy to explore all your options.

General Refinancing:

For those who are unable or unwilling to do a “cash-in” refinance and you currently have an adjustable rate loan or a fixed rate loan above 5.25%, a “rate and term” refinance transaction may still  be in your best interest.  You don’t have to have 20% equity in your current property to refinance; there are several programs that we can tailor to meet your specific needs.  Call us today for a no cost consultation!

 Home Purchasing:

If you are in the market to buy a new home, this is the time to get Pre-Approved and start your search. If you need a knowledgeable Realtor, please call me and I can recommend someone we have worked with before that knows and understands today’s complicated market place.  

 For our clients in California, don’t forget about the California tax credit of up to $10,000 for newly built homes, and up to a $10,000 tax credit for first-time homebuyer of existing homes. These credits were available beginning May 1 and be good through Dec. 31, 2010, or when funding is exhausted, whichever comes first.

HomePath & HomeStyle are here!

Fannie Mae recently announced the addition of the 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.  You can combine HomePath with HomeStyle the Fannie Mae renovation Mortgage program. The HomeStyle Renovation mortgage program allows borrowers to combine the cost of the home with the costs for renovation or remodeling.

 Get pre-approved with us today so you can be better positioned to compete in this “buyers” market. Most Banks and Realtors will not work with you unless you are pre-approved.

• NO MORTGAGE INSURANCE REQUIRED
• NO APPRAISAL REQUIRED
• Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate)
• Borrowers may qualify even if their credit is less than perfect
• Available for primary residences, second homes and investment properties
• FICOs down to 640

Reminders:

• California tax credit of up to $10,000 for a newly built home, and up to a $10,000 tax credit for first-time purchasers of existing homes in California. The credit will be available beginning May 1 and be good through Dec. 31, 2010, or when funding is exhausted, whichever comes first.  
• First Time HomeBuyer Credit:  $8000 tax credit expires on July 1st, 2010 (contract must be signed by 4/30/10).  The best part – if you have already filed your taxes, you can amend your 2009 tax return and get your $8,000 credit this year! 
• Move Up HomeBuyer Credit:  $6,500 tax credit for current homeowners purchasing another home – expires on July 1st, 2010 (contract must be signed by 4/30/10)

 And don’t forget – if you can benefit from more flexible qualification and income guidelines, we continue to offer great FHA program options that require as little as 3.50% down on new home purchase loans!  If you currently have a FHA loan, there is a FHA streamline refinance option available to you.

New California Home Buyer Tax credit and more…..

Governor Schwarzenegger today signed into law a bill that establishes a tax credit of up to $10,000 for a newly built home, and up to a $10,000 tax credit for first-time purchasers of existing homes in California. The credit will be available beginning May 1 and be good through Dec. 31, 2010, or when funding is exhausted, whichever comes first. The $200 million allocated for the program is split evenly with $100 million going to purchasers of new homes and $100 million going to first-time buyers of existing homes. Don’t wait…..

There are only 5 weeks left before the first time homebuyer federal tax credit expires!  We encourage you not to delay in getting your pre-approval, so you know how much you qualify for and how much your payments will be 

Why go to us for your pre-approval?  The answer is simple – time!  The next five weeks will fly by, and if you go to a “big bank” lender, you will spend the next 4 weeks wondering when you will hear back.  They are great at what they do; they just take a lot longer to do it!  Avoid all the delays, all the anxiety, and go with a trusted direct lender like us.  We can get your loan closed in days – not months!  

Program Expiration Dates:

•  First Time HomeBuyer Credit:  $8000 tax credit expires on July 1st, 2010 (contract must be signed by 4/30/10).  The best part – if you have already filed your taxes, you can amend your 2009 tax return and get your $8,000 credit this year! 
• Move Up HomeBuyer Credit:  $6,500 tax credit for current homeowners purchasing another home – expires on July 1st, 2010 (contract must be signed by 4/30/10)

 New Service Guarantee:

WE GUARANTEE A SMOOTH LOAN ORIGINATION PROCESS OR WE WILL REFUND UP TO $400 OF YOUR CLOSING COSTS.

Choosing a Lender

Thinking about buying a new home or refinancing your current mortgage…but don’t know who to turn to?  Torn between going to a “big bank” and going to a small broker?  You aren’t alone – many customers aren’t sure where they are going to get the best loan terms, the lowest fees and the fastest service.  

With us, you get the best of both worlds.  We aren’t “too big to fail” and we aren’t a small mortgage broker – we are a Direct Mortgage Lender.  Our goal is simple – leverage our years of mortgage lending experience to provide you with both world class service and loan terms that you can appreciate.  

To further highlight our competitive advantages, I put together our Top 5 advantages.   

Top 5 Advantages:

1. We can close your loan quickly.  If speed and accuracy is important to you, we are confident we will exceed your expectations!  We have closed loans in as little as 7 days!

2. Process appraisals in 1 to 2 days.  Every loan needs an appraisal, and you can go to a big bank and wait 2 weeks or more – or let us handle it in 2 days or less!

3. Experience: We can’t say enough about the difference an experienced direct mortgage lender can make on your loan.  Whether you are a salaried employee or a self-employed borrower, your circumstances are unique.  We are experts in reviewing tax returns and maximizing self-employed income.  Don’t spend countless hours working with a loan originator that isn’t supporting your

requests.  Let us turn a difficult situation into your new peace of mind.

4. Control over the process. Your basic mortgage broker processes your loan, and sends it to the bank to be underwritten. This takes a lot of time and is generally inefficient. We have our own highly experienced underwriters and processors, and we close our own loans!  Don’t waste your time with middle men – work with a direct lender and you will immediately appreciate the difference!

5.Many loan and rate options.  If you are looking for the best rate and the lowest fees, you need to work with a direct lender.  We will find you the very best loan terms, and fund your loan with our money!  We can close as quickly as you want. 

NEW SERVICE GUARANTEE 

WE GUARANTEE A SMOOTH LOAN ORIGINATION PROCESS OR WE WILL REFUND UP TO $400 OF YOUR CLOSING COSTS