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.

 

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.

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.

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.