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.

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

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

Home Buyer Tax Credit Expands…..

Great News! The first time homebuyer program ($8000 tax credit) has been extended until June 2010, and this time it is not only for first time homebuyers anymore…YOU MAY ALSO QUALIFY. Highlighted below are the important points to consider.

$8000 TAX CREDIT

You are no longer locked out because you earn too much, now you can qualify for the entire $8000 credit if…

• Single income of $125,000 and married income of $225,000
• Those who make more will be phased out
• Credit ends completely once single income reaches $145,000 and married income ends at $245,000 (This was capped at 95k and 170k)
• You must buy a home or have a binding contract to buy by April 30, 2010
• The property you purchase cannot have been acquired from a relative

$6500 EXPANDED TAX CREDIT:

This new incentive called a “MOVE UP” credit for CURRENT HOMEOWNERS. If you owned and lived in the same home at least five consecutive years of the last eight years you could qualify for this credit if you buy a new home between now and April 30^th.  How and when?

• You don’t have to sell your current residence to qualify, you can rent your current residence and buy another
• All of the above mentioned income requirements under the $8000 tax credit program apply
• The new house cannot cost more than $800,000
• The replacement or new house must become your primary residence. You can rent your current home or list it for sale
• Variety of dwelling types are allowed including condos, manufactured, mobile homes, and boats that function as your principal residence
• Second and investment homes are not allowed

This is absolutely your last opportunity to take advantage of these programs, Congress has strongly indicted it will not extend the program after June 2010. If the government is willing to give you a $6500 credit to move faster, why not?

Thank you for your continued support and referrals, I appreciate it as we try to “weather” this market. If you know of anybody that can benefit from my experience and service, please forward my email or call me anytime!  I look forward to hearing from you.

The First Time Homebuyer Tax Credit Expires in 90 short days… What does that mean to you?

The first time home-buyer tax credit expires in 90 days…it seems like you have a lot of time to find a house, get a mortgage and close, right? Think about how rapidly the rest of this year flew by…90 days is less than the blink of an eye.

What is the plan? First you have to get the money. That’s right, lets not even think about home shopping until you know what you can spend, and what payment you are comfortable with. If you don’t have that information, than looking for a home will be a crap-shoot. Once you have received your pre-approval letter, you must shop diligently. Keep these things in mind… you only have 90 days from today. I would steer away from new homes… any small delay, and you may lose your tax credit. Rather, I would look at existing homes (resales), to insure a rapid closing.

You should have your new home under contract by the end of the month…earlier is better, of course. Finally, don’t make any travel plans for Thanksgiving. Even though we will try to close by early November, every other first time home-buyer in the US will be attempting the same feat.  As a buyer, you must be available to close prior to November 30th.

Call me today, I will walk you through the process. Good luck on getting your new home.