Mortgage Scams

Alert - Don’t Become a Victim of Mortgage Scams

The Obama Administration recently announced the Making Home Affordable
Program, designed to assist up to nine million American families
refinance or modify their loans to a monthly mortgage payment that is
more affordable. Due to the over­whelming interest in the plan,
homeowners are increasingly becoming the target of scammers trying to
take advantage of families with false promises and steep fees to provide
foreclosure assistance. With Presi­dent Obama’s plan, a homeowner NEVER
has to pay to participate in the program. If you wish to obtain
counseling assistance, HUD urges you to contact a local HUD-approved
housing counseling agency to en­sure they are receiving legitimate
information. www.hud.gov

Mortgage Changes

The mortgage industry is changing daily. New rules are always being added. If you are looking to purchase a home, it is imperative that you speak to a mortgage professional and get pre-qualified if not pre-approved. A 600 credit score doesn't even cut it for FHA any more. You need a 620 middle credit score to purchase a home. That doesn't mean all hope is lost, it just means that you need someone that knows what they are doing to look at your credit and help you improve your position before you go out looking at properties. If your credit is good, then you can start shopping right away, but if you need to work on it, isn't it better to know now rather than later. For those of you wanting to use conventional financing 680 is your new number.
On the Obama Mortgage Plan front: last week saw the government roll out their new plan. Along with it all of the skepticism, there was everyone weighing in. There is a great website http://www.financialstability.gov/. This website has a lot of information on who to contact and what you will need in order to do so.
Please feel free to call or email me if you have any questions as I would like to help everyone either purchase a home or stay in their home.

The Holidays are Here!

I cannot believe that it is already December 1. Time is flying by. Last week was a great week for stocks, but it was all lost today as the market is closing after losing over 600 points. The bond market was faring very well this morning, but has since turned neutral. But neutral in this market is actually very good. Interest rates are low, lower than they have been since May 2005. If you have equity left in your property and are paying more than 6.25%, now is the time to refinance that mortgage. Call me, we can see if a refinance will benefit you financially.

What is going on with Mortgage Rates?

The Fed minutes from the October Fed Meeting were released on Wednesday November 19, 2008. The minutes expressed concern over the health of the economy and their future targets from employment and growth were lowered. But the big news was the word “deflation.” The Fed, after years of being concerned with inflation, now says they are concerned about deflation. The news shocked the financial markets, pushing Stocks sharply lower while directing enormous money flow into ultra-safe Treasury Notes. Now if you are watching conventional news sources then you would assume that this move would be improving mortgage rates. However, this is not the case. The Treasury Notes does not directly affect mortgage rates. Mortgage rates are directly affected by Mortgage Backed Securities.
While T.V. and print news would have you believe that the 285 basis point jump in the Treasury note arena is a phenomenal move for mortgage rates, it just isn’t true. The Mortgage Backed Securities Market has only seen a 12 basis point increase. That means that rates are good right now, but that they are holding steady and not improving by leaps and bounds.
Deflation is when prices drop, mainly due to decreases in money supply and credit. With the economy slowing down, we are hearing some people say we are in for a deflationary recession. In a deflationary environment, investors flee into fixed instruments like Bonds because the fixed payment received would actually buy them more goods and services over time.
A similar event took place back in the Spring of 2003 when Alan Greenspan uttered the deflation in a statement. Mortgage Bonds rallied at that time and set off the refi-boom of 2004. The market is much different now than it was in 2003; tighter lending guidelines and reduced equity.
For homeowners who have not utilized a refinance since the last “boom,” may be able to lower their rate in the near future. Being connected to a mortgage consultant that watches the market and knows how to interpret what is happening, is the best first step any homeowner or future homeowner could take.

What A Month!

October has been quite a month. My right hand, Patty, was gone on vacation and it seems that all heck always breaks loose when she is gone. We are finally caught up! Loans continue to change. Everyday there is a new guideline to be aware of. California has been in the crossfire of many loans being discontinued, but only in our state. Yesterday, Radian Mortgage Insurance decided to start insuring loans with only 5% down again. That means for clients with great credit scores and 5% of their own funds can obtain conventional financing. Conventional guidelines are a little more lenient when it comes to property condition. FHA is still my personal favorite for low down payment consumers.
I would like to thank Mr. Cleghorn for utilizing my services in his recent investment purchase. We closed right on time, a miracle in this market.
Congratulations also to Mr and Mrs Mahler. They have been waiting patiently since April for the bank to approve their purchase, once the seller's bank was on board, we closed their escrow in 3 weeks and right on schedule. I am ecstatic for this couple as their patience netted them a great rate and a savings of $60,000 on their home. Welcome Home Mahler family!!!

The Wait is OVER!!!

Have you ever wanted a home to be yours so much you just couldn't stand it. Most of you know this as offer after offer have been countered or rejected due to a multiple offer situation as of late. But Mr. and Mrs. VanVliet of Escalon, were actually living in their home on an option to buy and had to wait for the county to finish their job before they could buy their home. Could you imagine waiting on one government entity to figure out the boundaries of your home, while all the other government agencies are changing the loans that are available to you. Well, all is well now and Mr. and Mrs. VanVliet can call their home...theirs. Congratulations! P.S. Mrs. VanVliet had a beautiful baby girl while all of this was going on. A double Congratulations!

Mr. & Mrs. Smit Purchase Their Home

Greg and Rebecca closed escrow on their first home Friday. It was such a pleasure getting to help them. They had been looking for two years, and went back to the home they originally fell in love with. This is a great move for Greg as he gets to come home to Ripon, where he grew up. Both families are happy and I cannot wait to take a picture for my site. Congratulations!