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.

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

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

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.