Say Hello to Our New and Already Misguided CFPB. – 07/21/11

Say Hello to Our New and Already Misguided CFPB. – 07/21/11

Prepare for Another Stimulus!

Prepare for Another Stimulus!

Market Update

A big 7 year bond auction was rated a D today, dropping bonds and pushing rates a little higher. The $600 billion QE -2 comes to an end tomorrow but the FED will likely continue to purchase Treasuries with the proceeds from maturing debt. This could equate to $25B per month and could help keep interest rates near historic lows.
As the highest traffic weekend approaches you can count on me to pre-qualify you prospective buyers. I will be available throughout the holiday weekend. A few minutes on the phone an we will know if a buyer prequalifies. Save Time and Money - Pre-Qualify.

Any of you doing new homes? Our Construction/Perm loan is the best; lower credit scores to qualify and higher loan to values. We will even do a 100% USDA Construction/Permanent loan. Call me for details. Easy builder approval.

4 Financed Property Rule

What's the 4 property rule? Currently if a borrower has 4 financed properties, they cannot get another loan. The number used to be 10, now it's 4! I had 3 customers call this week alone that were blocked out of doing something because of this Fannie Mae/Freddie Mac rule.


In this total of 4, lot loans and commercial loans do not count. A borrower may get a local community bank to ignore the rule but if they are Fannie/Freddie it won't work.

Construction/Perm Loans

Union Mortgage has a strong construction/perm loan program.  Use it to buy the lot or pay off a lot that you already own.  Interest only during construction and lock in a great rate 60 days from getting the CO.  Choose any program you like; 30, 20 or 15 yr fixed; 5 or 7 yr ARMS; VA, FHA or USDA.  We are totally flexible.
Almost 100 builders approved in just North Carolina.
If your builder is not approved, our process is simple.  Send me the contact information and I will get it done.

In House Loans-If It's Too Good To Be True.........

Some local banks offer customers (buyers) in house mortgage loans...are they a good deal...MAYBE.  Locally there are tons of people that received in house loans during the explosion of the Real Estate market.  But when rates dropped and these borrowers tried to refinance in order to get a lower rate, these same banks refused to budge.
Loans that were Fannie Mae and Freddie Mac owned qualified for refis but the local banks and some credit unions told stressed out borrowers to take a hike.
So before you jump at that good deal, think again.  If it sounds too good to be true, it probable is.

USDA Loans 100% for Primary Home Buyers

http://myemail.constantcontact.com/USDA-works-for-Brunswick-Co.html?soid=1103933566854&aid=VBZM2vRGIVE

Coastal Hounds TV Interview

Coastal Hounds Walk the Town - Charity Dog Walk - Saturday, October 9, 2010
Shallotte Rotary Club's Wounder Warrior Project
100% of the admission fee donated to Carolina Canines for Veterans
www.coastalhounds.com
or call (910) 842 1658 for more information

THERE IS HOPE!

I was stopped dead in my tracks when I was alerted the article from TIME MAGAZINE linked in my blog on the right column, marked History Repeats Itself. Please make sure you check out the date of this article titled The Long Haul:the US Economy. All is not lost.
Call me today. Mortgage rates are the lowest in history.

Your Credit Report

If you have not checked your credit report lately it is wise to do so. Skip all the ads for Free Credit reports…everyone will hook you one way or another. The government has actually told the three credit bureaus, Trans Union, Experian and Equifax, to allow 1 free credit report per year if ordered through Annual Credit Report. This credit report does not provide the score for free, just the report. You can actually order one bureau at a time and do it in intervals of every 4 months and essentially cover the year. One caution, not all lenders report to all bureaus. Go to my site MORTGAGE NEWS for an easy link to this site. It is in the right column near the bottom.

Additionally, do not be frightened off by the word that the banks are not lending. Yes, some people do not qualify but we are still helping tons of people save money at today’s reduced interest rates. It costs you nothing to have me run the numbers and have a good idea whether refinancing will work for you. Don’t wait any longer. It’s not likely to get any better.

My Theory of Relatitivity

Customers asked me everyday “will rates get any lower”? My answer is “who knows!”. Financial people a lot smarter than I guaranteed that by now mortgage rates would be in the upper 5s or low 6s but for many people with really good credit, we’re still in the mid 4s.

Here’s my “Theory of Relativity”; a year or 2 down the road…or maybe even 6 months from now when rates are in the 6s or 7s and you look back at your wise decision to lock in a low rate in August of 2010, you will feel pretty good about getting fixed in the 4s. Plus or minus an eighth or a quarter will make little difference. Holding out to try and catch the bottom is very risky. In a flash we could loose what we feel is the bottom. It’s all relative.

Mortgage bonds are traded just like stocks and we want to get you the lowest rate possible….we want you bragging to your friends and relatives about how well we did for you. Stock traders always say “buy low..sell high”. If it was that easy, none of us would have to work for a living.

Don’t miss this opportunity. Lock in an unbelievable low rate today.

Everyone’s scenario is slightly different, based on many factors. Give me a call today and let’s see what we can do for you. I promise I will give you the best possible deal I can.

HARP can Help

Thursday, August 20, the bond market finished strong and today we gave it all back. What does this mean to you…nothing. No change on the rate sheet. The stability in rates over the last month or so has been pretty amazing. We have seen no more than 1/8% to ¼% movement during this time. This seems like a real floor. Could rates dip lower? Who knows but if I was in the market for a low rate loan, I’d lock in now and move forward. What does Jim Cramer say….. “Pigs make money but hogs get slaughtered”. Don’t loose sleep thinking, “Maybe I should wait to try and save another 1/8%”.
The instability in the world economy and the 24 hour news cycle make me nervous. Something crazy could happen somewhere in the world and puff ….our 3s and 4s become 5s and 6s.
We even have some great mid 3s and 4s on Jumbo 5/1 and 7/1 ARMs, primary and second homes.
Wish you could get in to a lower rate? At NO COST to you, I can give you a pretty good idea if refinance will work. Even if you are underwater and the loan is $417,000 or less, we have the government HARP program that may work up to 105% LTV (loan to value).
HARP works on primary and second homes with rates almost as low as market rates and can even work on investment homes at a slightly higher rate.
Call me today. Don’t wait another day,

Defying the Laws of Gravity

Defying the laws of gravity, mortgage bonds continue to rise, driven by weakness in the job market. Bonds have broken through new levels. Mortgage rates are the best we have ever seen them. How long can this last….who knows. Weakness in the economic reports, low inflation and a stable stock market is great for fixed rate mortgages.
We have had an incredible couple of weeks, locking customers in, at record lows. Every customer may qualify at a slightly different rate depending on many factors; credit score, property type and use, loan program, etc. Call me and I will get you the best possible deal I can. I try and do the majority of loans with no points.

What Do You Think?

Bonds continue to test new highs keeping mortgage rates at record lows. I have locked plenty of people in, with no points, at 4.5% to 4.625% for weeks. This rate range has not fluctuated much over the short term, telling me we’re at the bottom of the scale. FED spokesman, Williams said that they see inflation staying moderate but will move quickly if they see a change. Again, that means we should take advantage of the low rates today as they can disappear quickly.
Waiting for the home prices to drop, a little more, is a dangerous game.
I’m betting there is a better chance of rates taking a jump then home prices falling any more. What do you think?

Mortgage Rates at the Bottom

We believe mortgage rates have hit a “floor of resistance” as they have been +/- 1/8% for several weeks. Comments from Fed nominee Susan Raskins suggest the FED should hold off selling MBS (mortgage back securities) until the start raising the FED Funds rate and the housing market stabilizes. If you recall, the FED purchased $1.25 Trillion on MBS and that sent rates down to today’s levels. If they start selling off these “bonds” the market will flood and rates will rise.

What does all this “mumbo jumbo” mean to you the Realtor or homeowner……rates are truly at the bottom with nowhere to go but up. Whether you are buying a home or trying to save a few “bucks” with a lower rate, now is the time. Call today to check out what rate we can get for you. Every situation is different, based on credit scores, loan type and size, escrows and many other factors.

We can do financing in North Carolina, South Carolina, Georgia, Virginia, W VA, DC, Maryland, Delaware and Pennsylvania.

NOW a HOMEPATH Lender

Mortgage bonds continue to swing up and down but over the last several weeks we have seen very little movement in fixed rates; maybe an 1/8 swing. Our monitoring service has warned us bonds are oversold and due for a correction. This week, I have locked in several high credit score customers at 4 ½% with no origination fee on 30 year fixed mortgages and in the 3s with 5 year ARMs. This is the best it’s EVER been, period.
Additionally we have been using the government program, “Making Homes Affordable”, to help people who owe more then the home is worth. We can currently do up to 105% of value, for a refi, not a purchase.
We just became authorized to do Fannie Mae HOMEPATH loans. These loans can be used in conjunction with many foreclosed homes owned by Fannie Mae. HOMEPATH works when the borrower is outside some of the normal finance program guidelines and can be used for primary, second homes and investment property purchases. There is no appraisal, so value becomes a non-issue. These loans have no MI but the rates are somewhat higher then standard financing. Of course, when there no other way to get the deal done, something is always better than nothing. Your Realtor can probably get Fannie Mae to pay some closing costs and “ease the pain” a little. Go to my MORTGAGE NEWS site for more information or call me at (910) 352 6562. Vince Bacchi, Senior loan officer Union Mortgage Group.

Oh No! Barney's Back in the News

Almost anytime you see stocks take a dive, you can count on fixed rate mortgages moving lower, as seen today. But at the levels we’re at, today rates are just bouncing of a floor and there is almost no where to go but up.
The following information was reported to us by one of our marketing monitoring services:

“The Financial Regulation Bill passed the Senate by a 60/39 vote and is on its way to the President for signing. This 2000 + page bill does little to address the core reasons for the financial collapse. Fannie Mae and Freddie Mac are completely left out of this bill and the credit rating agencies, which played a major roll in the collapse, are never mentioned.
This bill has less to do with fixing the country’s financial woes and more to do with pushing the political agendas of its authors Chris Dodd and Barney Frank.
Alan Greenspan was recently quoted in a CNBC interview regarding the Financial Regulation Bill….. was that this was the first time the Fed was not asked to write this regulation, and that it was basically written by junior staffers that have no clue about the complexities of these financial entities that they are trying to regulate…Greenspan said there are unintended consequences in every page of this bill. He said that any banker dealing with Washington is very familiar with what is known as the 25 Cubed Rule….basically that the government is run by 25 year old staffers that are making $25,000 a year and work 25 hours a day…..and a majority of them have never even financed a car…let alone a home, yet we are handing our regulatory oversight to these 25 year old staffers.”

Doesn’t this make your head hurt!

On another note, I am hearing endless stories of lenders telling buyers and Real Estate brokers, “no problem”…they can do anything, even the impossible. Now more then ever, you need to work with experienced loan officers. A low ball rate does not certify experience. There are many desperate loan officers out there that will say anything and quote a give away rate just to get the deal. With this group of people, you could spend a month and have the deal “blow up” after 30 days.
I ask a lot of questions and investigate possible pitfalls. Sometimes borrowers leave out bits of information that could cause problems later on but we do our best to prevent failure. Of course, the final decision is up to the underwriter.
Call or e mail with questions.

25% of All Consumers are at 599 Credit score or Lower

As the DOW headed back from the minor correction we saw rates worsen. The DOW leveled off over the last few days and rates improved. The pure truth is rates have never ever been this low.
For first time home buyers, we are still doing USDA loans; 100%, primary residence only, no MI and no mobile homes. Maximum income locally, in Brunswick County, NC, where all areas qualify is $73,600 for a family of 2. Please e mail me for information and availability in other locations.
Take advantage of the low rate even if you are a little upside down mortgage VS value. For example, you owe $210,000 with the home's value only now at $200,000, we may be able to get today's lower rates with no MI. We have done a ton of loans through the government Making Homes Affordable Program.
One bit of disturbing news reported this week is that 25% of all consumers in the US now have credit scores 599 or less. That is about 43+Million consumers that will not be able to purchase a home, car or almost anything else, on credit. We all know that a large portion of the 25%, are people that always paid their bills but have been caught up in this economic downturn. My bet is that creditors (banks) will figure out a way to lend these 43 Million consumers money. That’s way too big a piece of the population to be completely outside of “credit” access. Banks are greedy…they make money lending money. You heard it here first… in 6 months to a year we will see changes.

BUY NOW or WAIT! The Question Answered

After a couple of tough days, mortgage bond are back in positive territory. Rates continue to be super attractive.

I know a lot of you are struggling with customers that cannot make up their minds or are waiting for prices to drop, a little more.

Let me provide you with a comparison you can use:

$999 P&I is the payment on a $200,000 loan at today’s 30 year fixed rate of 4.375%.

$999 P&I is the payment at 6% for a loan of $166,553.

That’s a difference of $33,447. You could say that if they missed today’s great rates, the house price would have to drop by $33,447, when (and it will happen) rates jump to the 6% range.

Here’s the big question? Is it worth waiting for the price of the home to come down a few thousand dollars and miss today’s extremely low rates? No. The answer is BUY NOW!

With today’s rates the consumer is catching the luckiest break ever. Every expert predicted rates being in the upper 5s or low 6s by now.

Do not wait another day. Buy or Refinance NOW. Call me at (910) 352 6562

SEIZE THE MOMENT

Seize the Moment

“Mortgage rates have never been lower, ever!” You have seen this statement in the media over the last several weeks and it’s close to being correct. Unlike the period of low rates we experienced in 2009, today’s rates are almost totally market driven and unsupported by the FEDs. Thus we can expect extreme volatility. News on the world scene can send the market quickly in one direction or the other.
Many people have held off, hoping to “squeeze” another 1/8% or ¼% off the offered rate but we are right at the bottom. Rates could quickly loose ground and rise by 1% in a day. Truly, the market is that fragile. The Fed Chairman makes the wrong comment or some country in Europe gets a “junk” rating on their bonds….and the market goes haywire. It will not take much to push rates back into the 6s.
So here’s your opportunity of a lifetime:
1.Refinance now and take advantage of record low rates. A small rate change on a larger loan can generate a worthwhile savings.
2.We can do financing in North Carolina, South Carolina, Georgia, Virginia, W VA, DC, Delaware, Maryland and Pennsylvania.
3.Primary and Second home residences and investment homes are all eligible.
4.If you have an FHA loan, we can do a “Streamline Refinance” with no appraisal and no lender fees and very little money out of pocket.
5.If you owe a little more on your home then you think its worth, we still may be able to help you take advantage of today’s low rates. We support the government “HARP” program which allows people to refinance if they owe up to 105% of the value of their home, with No MI.
Your credit score, loan amount, property type, occupancy, collection of escrows and other factors will ultimately determine your interest rate.
Give me a call today and see if refinancing is right for you.