Get a Good Faith Estimate

Market Update

Rates closed the week down on some products and flat on other.

The market is still volatile and rates are changing everyday.
Get a Good Faith Estimate from your lender when shopping for a mortgage to understand the costs involved with paying points or not paying points.
After coming off the poor performance week in the market mortgage pricing has gotten better this week with a more than 100 bps increase in the market.
In other news, oil prices bumped higher once again after news of a potential strike at a Chevron plant in Nigeria, which is Africa’s largest oil producing nation. If oil prices continue on their current path, it may apply selling pressure to both Stocks and Bonds.
I’m predicting that if inflation continues to be a concern interest rates will rise.

Market Update April 25th

Market Update April 25th:

Rates have certainly been busy moving up and down, but no worries! This is just part of the market. Rates don’t typically move this much, but in this market anything can happen. Remember what goes up must go down and it’s all part of the market game. Stay tuned for more information.

· Wednesday the Fed has a meeting schedule and from what I understand there is a 75% chance the Fed will cut another 0.25% to the Fed funds rate
· Interest rates are down by about 0.125% this week when compared to last week
· Your client should float at least until Monday or Tuesday because rates are usually get a little better right before the Fed meeting

Make it a great weekend! Oh by the way, I’m NEVER too busy for any of your referrals.

Market Update April 18th

Market Update April 18th:

This morning’s rally in the bond market today has been good considering rising interest rates earlier in the week. Mortgage pricing went down for the day.

The chances of 50 basis points of easing at the FOMC meeting April 30 have evaporated and are now chomping away at the 25 basis point cut signaling that the credit crisis could be near the end.

***Do you know someone who wants a mortgage at less than 5%? Call me for details.***

***100% financing to $500,000? Ask me how.***

See the articles below: The big news for the day was Google reports a 30% profit increase which blew most analyst projects out of the water.

http://www.mydesert.com/apps/pbcs.dll/article?AID=/20080412/BUSINESS04/804120312/1043/business04
http://money.cnn.com/2008/04/18/markets/markets_newyork/index.htm?postversion=2008041817

Have a great weekend and by the way, I’m never too busy for any of your mortgage referrals!

Unemployment rate to nearly 5%

Last week we had a poor jobs report reading for March with a loss of 80,000 jobs which increased the unemployment rate to nearly 5%. Remember, the jobs report is the economic number with the biggest impact on mortgage rates.

Also, are you curious about your credit card debt? What should you keep your eyes peeled for? Have a productive week and make it great!

Oh by the way, I’m NEVER too busy for any of your mortgage referrals.

Jobs Report

Attached you will find my current rate sheet for the weekend. These rates have been accumulated from, Chase, Wells Fargo, IndyMac, Countrywide, Citi Mortgage, Wachovia, Everbank, and Washington Mutual. I have handpicked the best rates from all these banks for the most popular loan programs, so that I can ensure you and your clients the very best deal.

Market Update:

Rates ended down for the week by 0.25% on Conforming Loans 30 Fix and stayed about the same for Jumbo 30 yr Fix

Today the jobs report came out with a revision of 80,000 job losses for March. This allows mortgage pricing to stay lower longer. It reported the biggest job loss in five years with the unemployment rate eclipsing the 5% mark.

The jobs report is the economic number with the biggest impact on mortgage rates.

Do you know someone who wants a mortgage at less than 5%? Call me for details.

100% financing to $500,000? Ask me how.

Have a great weekend and by the way, I’m never too busy for any of your mortgage referrals!

100% financing

Are you tired of your clients hearing NO, NO, NO, I can’t find anyone to qualify me on 100% financing, interest rates are too high, I don’t have enough money for a down payment or closing costs, or I am in a declining or soft real estate market and cannot meet my lender’s new qualifying guidelines?

If you are tired of hearing these objections, then I can help you sell more homes because I can turn these frustrated clients into buyers.

Call me today to discuss the benefits of FHA financing for your clients. I have a privately funded down payment assistance program that has been approved by the FHA to help get families into homes.

This program allows:
Down payment and closing cost assistance to the buyer
Lower interest rates
No declining or soft market policy
Easier to meet with low or no credit scores needed
No asset reserves required
This program is restricted to primary residences only
Full documentation, but also allows non-occupant co-borrowers to help qualify.
The maximum loan amount 500K.

The responsibility of executing this program correctly will be based on the ability of the buyer, seller, and lender all working together to accomplish our goal. I will be more than happy to school all who are involved in the transaction to help accomplish this goal.

Bear Stearns bailout

I hope you had a relaxing Easter weekend. This weeks update covers the news about last weeks Bear Stearns bailout. Ever thought about the Pros and Cons of buying a car versus leasing one? This week’s update covers it all! Also, just in case you didn’t get a chance to read why new mortgage rates go up after a Fed cut see the attached article.

I’d like to address one topic today. Have you ever noticed in the Desert Sun that many of the articles are written by the Associated Press? Ask your clients who wrote the articles they are reading and quoting and ask them if it’s a nationally related article or a local article. You may be surprised!



St. Patrick’s Day

I’m sure you’re off to a very green St. Patrick’s Day! Last week the financial markets were pretty green for you too with mortgage rates dropping by as much as 0.25% for most programs. But be careful! With inflation numbers down reported last week the Fed could cut Fed rates by another 0.75% in tomorrows meeting. These rates are tied to the Prime rate, consumer loans, and credit cards, but the Fed rates are what the Fed lends to banks overnight! With a Fed cut, inflation could rise and when inflation rises mortgage rates are likely to go up. I recently sent out an article explaining this. If you’d like to look at it again please let me know. Make it a great week!

Oh by the way, I’m never too busy for any of your purchase or refinance mortgage referrals! Have a safe and fun St. Patrick’s Day!

MMG Weekly For the week of Mar 17, 2008 — Vol. 6, Issue 12
“JUST WHEN I THOUGHT I WAS OUT…THEY PULL ME BACK IN.” Al Pacino in the 1990 film, The Godfather III And if Bonds and home loan rates thought they were out of the days of volatility…they got pulled right back in, as last week brought daily price swings of almost historic proportions. For the week overall, fixed home loan rates improved by about .25%.

What led to the dramatic action this week? The bipolar emotional state of the markets began deeply depressed on Monday, but then were filled with joy Tuesday, when the Fed made an interesting move by announcing the creation of the new Term Securities Lending Facility (TSLF). The TSLF will provide borrowing banks with $200 Billion to draw on to help inject liquidity into the credit markets, and further, will accept some mortgage-backed securities as collateral, which effectively may help to “upgrade” the value and perception of battered Mortgage Bonds.

But in the meantime…struggles are still being played out related to the downgrade and losses experienced by companies holding massive amounts of mortgage-backed securities. Headlines hit on Thursday about The Carlyle Group, which manages a portfolio of mortgage-backed securities, not being able to meet a margin call and being forced to sell off large amounts of mortgage paper into the markets at great financial losses. Then on Friday, the news broke that financial brokerage and investment banking giant, Bear Stearns had suffered enormous losses, and their lack of liquidity endangered them from going out of business…or “sleeping with the fishes”. The new aforementioned TSLF is designed to help this type of liquidity problem, but it will not go into effect for a few weeks, and Bear Stearns would not last that long. Coming to the rescue with loans were both the NY Fed and JP Morgan Chase. These sure are exciting times.

One bright spot for the financial markets was a low consumer inflation reading. The Overall and Core Consumer Price Index (CPI) figures were reported unchanged, far cooler than the expected increases of 0.3% and 0.2% respectively. These tame inflation numbers give the Fed a green light to cut the Fed Funds Rate by another .75% at Tuesday’s meeting…but read on to understand exactly how this cut may impact YOU.

IF THE IDEA OF KEEPING BUSINESS IN THE “FAMILY” CONJURES UP IMAGES OF MICHAEL CORLEONE AND OFFERS THAT CAN’T BE REFUSED – YOU’LL WANT TO READ THIS WEEK’S MORTGAGE MARKET VIEW TO LEARN SOME TIPS ON RUNNING A SUCCESSFUL FAMILY BUSINESS, WHERE YOU LIKELY WON’T HAVE TO WORRY ABOUT EITHER GUNS OR CANNOLI’S.

Forecast for the Week

So if you love all the excitement, drama, intrigue and crazy volatility of late…you’ll love the week ahead, as it is loaded full with market movers. We’ll get the latest readings on the health of the manufacturing and housing sectors, but the main event will take place on Tuesday when the Federal Reserve announces its latest interest rate decision and Policy Statement.

The Fed is expected to cut the Fed Funds Rate by another .75%. However, as we’ve seen following every Fed rate cut in the recent cycle, chances are very good that Bond pricing will worsen following the cut…which results in higher home loan rates. This happens because Fed rate cuts help to stimulate the economy, by making it less expensive to finance personal and business purchases…and this in turn fuels inflation, the arch-enemy of fixed return assets like Bonds, which home loan rates are based on.

So a word to the wise – if you or someone you know has been ready to move forward on a purchase or refinance, there’s no time like the present. Be sure to get in touch with me, so I can explain your options and help plan a great strategy for your home loan.

Chart: Fannie Mae 5.5% Mortgage Bond (Friday Mar 14, 2008)

The Mortgage Market View…

BUT DON’T EVER TAKE SIDES WITH ANYONE AGAINST THE FAMILY AGAIN…EVER

These lines spoken by Michael Corleone to his brother Fredo could very well apply to small family businesses, which are critical to the nation’s economy. In fact, according to the National Federation of Independent Businesses, more than 1.2 Million businesses across the country are owned and operated by spouses. While these thriving ventures in capitalism are great for the economy, they can cause a lot of stress on your family relationships. That’s why experts recommend you follow a few simple suggestions to keep the business–and your family life–running smooth!

Only Fools Rush In. Starting a family business is a huge commitment. Although it sounds romantic, it’s a lot of work to…well…make it work. Before you jump in, consider what type of business is truly right for you; how the business will impact your financial plans; and how you’ll still make sure you have time in your schedule to enjoy non-business related family time. Because, as The Don says, “a man who doesn’t spend time with his family can never be a real man”.

Put It In Writing. The first step to making your dream a reality is putting together a business plan. The Small Business Administration has a great website that can help you write your business plan. You’ll also need to apply for a business license, tax identification number, and even business loans. Again, you can find the most requested business documents on The Small Business Administration website.

Clarify Roles and Responsibilities. To help avoid frustrations and arguments in the future, make sure everyone agrees on who will be responsible for what. Give yourselves titles and draft job responsibilities…then make sure everyone is happy with their role, and that all of the important everyday duties are covered. Make sure you determine who will pay the bills, who will negotiate contracts, who’s in charge of the marketing plan, who does the hiring, and so on. You don’t want to risk overlooking something or arguing about it later.

Protect Yourself. More important than having Luca Brasi as your bodyguard is making sure you plan your finances and stock away plenty of money to hold you over, especially during the start up phase. Most experts recommend having three to six months worth of living expenses in savings, depending on whether one or two people in the family will be relying on the business as their main income. You’ll also want to meet with a financial planner to make sure your retirement and other financial plans stay on track – and if you need a referral to a great financial pro, just let me know.

Set Boundaries… and Stick to Them! It’s easy to let the business take over your family life. Little by little the business successes and setbacks slip into family conversations… it’s only natural. But don’t let them take over completely. To alleviate this problem, make sure you set up regular “business meetings” where you can talk about key issues and exchange ideas about the business. In addition, establish some off-limit times where you’ll devote yourselves to each other and your family life. After all, even family businesses need some time “away from the office.”

Starting a business with your spouse or family is an exciting time. The key is to harness that excitement while staying cool-headed enough to make smart personal and financial decisions. If you or someone you know needs help with these important details, please don’t hesitate to call. I’ll be happy to discuss your needs and put you in touch with other professionals that can help.

FRANKLIN LOAN CENTER IS NOW FHA APPROVED!!

FRANKLIN LOAN CENTER IS NOW FHA APPROVED!! This means great things to come when you have clients who are in need of NO and LOW down payment assistance.

Wow, I hope you’ve had an exciting week like I have! Yesterday we got the announcement that the conforming loan limit / FHA limit for Riverside County has increase to $500,000 for single family homes. We are still waiting to be able to lock loans at the new limits. You’ll notice on my rate sheet (attached) that I am still using the conforming loan limit of $417,000 until I am able to lock. Also, there are specifics we are verifying regarding these new limits! As I get more information I’ll pass it along.

This week I’ve attached two articles you should read.

DO YOU HAVE CLIENTS WAITING FOR ANOTHER FED RATE CUT? Read the first article, “Fed Cuts Mortgage Rates Go Up?” to knock them off the fence as mortgage rates will most likely go up after a cut! PRINT COPIES TO PASS OUT!

DO YOU HAVE CLIENTS WAITING FOR PRICING TO COME DOWN? Read the second article, “Ignore All the Headlines” to encourage them to take advantage of low interest rates. PRINT COPIES TO PASS OUT!

Attached is my weekly rate sheet! I’m NEVER too busy for ANY of your referrals! Make it a great week.

FHA Mortgage Limits List – FHA Forward

Message: MORTGAGE LIMITS SUCCESSFULLY COMPLETED

Mortgage maximums as of Wednesday March 05, 2008
(1 records were selected, 1 records displayed.)
MSA Name
MSA Code
Division
County Name
County
Code
State
One-Family
Two-Family
Three-Family
Four-Family
Last Revised
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (MSA)
40140

RIVERSIDE
065
CA
$500,000
$640,100
$773,700
$961,550
03/05/2008

FHA Mortgage Limits List – Fannie/Freddie

Message: MORTGAGE LIMITS SUCCESSFULLY COMPLETED

Mortgage maximums as of Wednesday March 05, 2008
(1 records were selected, 1 records displayed.)
MSA Name
MSA Code
Division
County Name
County
Code
State
One-Family
Two-Family
Three-Family
Four-Family
Last Revised
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (MSA)
40140

RIVERSIDE
065
CA
$500,000
$640,100
$773,700
$961,550
03/05/2008



Fed Chair Ben Bernanke

Good Morning! Hope you’re off to a great week!

Last week in mortgage news we saw rates improve by about 0.25% to 0.375%. This was a result from Fed Chair Ben Bernanke and some bad news for the economy from several reports. Up and coming… the Economic Stimulus Package… do you know what to do with your tax rebates? See the tips below!

Oh by the way, if you have a family member or friend from work interested in buying or refinancing a home, I am never too busy for your referrals. Please call or email me their name and I’ll be happy to follow up with them!

Make it a great week!

-Sean