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,

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

“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.

How Low Can Rates Go?

If you are in the market to buy a new home or refinance your current mortgage, you probably have noticed interest rates dropping considerably over the past week.  Many expected rates to increase after the Federal Reserve stopped purchasing mortgage backed securities (MBS) at the end of March, but recent global events have played a heavy role in driving mortgage interest rates down temporarily. 

 These economic conditions can change in an instant.  We are strongly encouraging all of our clients to lock in these low rates as soon as possible.  One good piece of positive economic news can cause interest rates to increase again, and it can happen quickly.  Nobody knows for sure, but we believe there is a small window of opportunity here – do your research and make your move.  Low rates = lower monthly payments, higher rates = higher payments. 

• Average 30 Year Fixed:  Rates for 30-year fixed {conforming mortgages} are around 4.75% this week (down from 5.125% last week).
• Average 15 Year Fixed:  The average 15-year fixed mortgage rate is around 4.09% (down from 4.25% last week).
• ARM Rates: Rates for 5/1 adjustable-rate mortgages (ARMs with a 5 year initial fixed rate), are around 3.44% (down from 3.42% last week).

 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 GUARENTEE 

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

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