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.

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.

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

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.