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.

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

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

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.

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