Posted on 23rd January, 2009 by Janet French
What Lenders Learned During Prior Refi Booms
First off, what is happening with interest rates and reduced yield spread premium? 15 years ago it wasn’t uncommon to see nice buy-up schedules on many products, with an increased yield spread premium being offered in return for a higher interest rate. But then along came the refinancing frenzy of 1993 and 1998, followed by the grand daddy refi bonanza of 2002 to 2003. As home loan rates dropped ever lower over the years, you can imagine how the investors felt as they watched loans turn around to be paid off in a relatively short time, as increasingly lower rates made it attractive for clients to refinance, sometimes multiple times in a year. These losses on loans were very costly to lenders.
So…after learning their lesson many times over…the lenders got smarter and started to reduce the amount of par premiums, followed by making those premiums more expensive by demanding even higher rates in return for a smaller premium and have now nearly eliminated that premium pricing which cost them so much money in the past.
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Posted on 14th January, 2009 by Your Silverstar Team
Just what is the conforming loan limit is on single-family homes and condos in Southern California?
It was raised last year to $729,750 in designated high-cost areas under the Economic Stimulus Act of 2008 — has been a continued source of confusion because it varies throughout our region.
And for 2009 it changed again…
Under the previous federal rules it was simple. Fannie Mae and Freddie Mac couldn’t buy loans larger than $417,000, the limit for conforming mortgages. Any loan greater than that was considered a riskier jumbo, or nonconforming, loan, and borrowers paid a higher interest rate on it.
For 2009, the revised maximum conforming limit is $625,500. And that’s what it is for the Los Angeles-Long Beach-Santa Ana metropolitan area. But for the Santa Barbara-Santa Maria-Goleta area it’s $603,750; for Oxnard-Thousand Oaks-Ventura, $598,000; and for San Diego-Carlsbad-San Marcos, $546,250.
Does this matter to consumers? Don’t most lenders charge a higher interest rate on loans above the $417,000 limit that applies everywhere else anyway? Or does it just mean that at least money (even at higher rates) is available to borrowers seeking larger amounts?
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Posted on 9th January, 2009 by admin
Attitude is Everything!“A good goal is like a strenuous exercise- it makes you stretch.”
~Mary Kay Ash
For some reason, when we can’t see the future clearly, we tend to see things as becoming worse rather than better. However, the optimistic attitude that gave us the world we now live in is what is needed to take advantage of the fantastic opportunities all the despair and market uncertainty is generating today.
Attitude is Everything
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Posted on 9th January, 2009 by Janet French
I was in the process of recording a video this week but I’m loosing my voice and the video was just not turning out so great.
So ….Continuing on from “Why Houses Make Great Investments”…that I wrote to you about a couple of weeks ago.
What a GREAT environment we’re in for buying real estate….yep that’s right, I said “Great“. I’m sure you’ve read or heard by now how fantastic interest rates are, hopefully you read my email from last week. =) And…you know that homes are on sale and investment earnings are down.
So, how does this affect your plan?
People who are self-employed who will not be getting a pension from their employer, myself included, need do some extra planning to put money aside for our retirement. And now, especially in today’s income and investment environment, it’s difficult to have enough money to save, right?!
Alright so even if you aren’t self-employed and you’re expecting a pension, how secure is it? Probably not something you are going to rely on solely, right?
So what are your alternatives. Although there are many, real estate happens to be an exce
llent choice. Think about your own Estate / Retirement plan, you do have one right? Use this simple form below to start thinking about how rental income can help your bottom line.
Posted on 9th January, 2009 by Your Silverstar Team
The Labor Department reported this morning that there were 524,000 jobs lost during the month of December. This was worse than expectations of 500,000 - but much better than rumors of a far worse number, especially considering the ugly ADP numbers released earlier this week. All told, there were 2,600,000 jobs lost in 2008 - but get this, with 1,900,000 of those jobs lost in just the last three months of the year. This past year showed the biggest job loss in any calendar year since 1945, when 2,750,000 jobs were lost as the wartime economy was demobilized. Read the rest of this entry »
Posted on 2nd January, 2009 by Kurtis Kooiman
How to Be Happy
Nobody is happy all the time, but some people are definitely more fulfilled than others, and it doesn’t seem to have much to do with material goods or high achievement—things many people spend a lot of their time worrying about. So what do they have that you don’t?
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Steps
1. Relax. Lighten up. Don’t take yourself too seriously. Try not to over analyze things. Stress can cause many mental, physical, and spiritual problems in your life. One of the major causes of stress is worrying about things that are out of your control. Learn to recognize these things and if you can truly do nothing about them, then just let them go. Take time to laugh at yourself and the situations you find yourself in. Laughter is a powerful, positive medicine and the calmer and more peaceful you can take things, the happier your life will be. It wouldn’t be life if some bad things didn’t happen.
2. Smile You would be surprised how much of an immediate difference physically smiling has on your mood, if you smile and force a little laugh you will feel your mood lighten and you won’t have to force it next time. Read the rest of this entry »
Posted on 23rd December, 2008 by Your Silverstar Team
After a lower opening, Mortgage Bonds have clawed their way back. The 3rd Quarter Gross Domestic Product (GDP) was reported inline this morning at -0.5%. And while this negative reading depicts a sluggish economy, Wall Street is expecting future numbers to come in much worse. The outlook for the 4th quarter GDP shows expectations for a 6.0% decline…a very bad number.
Existing Home Sales were reported just slightly better than expectations. The median sales price of existing homes fell 13.2% over the past year, likely representing the largest decline since the Great Depression - the US has only been keeping these records for 40 years. The inventory of unsold existing homes rose slightly to an 11.2 month supply.
New Home Sales were reported at 407,000, which was the lowest reading in 27 years and below expectations of 415,000. The inventory of unsold new homes fell slightly to an 11.5 month supply. These were not good housing numbers, and inventories are very high. These levels will need to be worked down before we can see home prices stabilize and move higher. However, the abundant inventory and low interest rate environment provides opportunity for buyers to purchase homes below market prices.
Michigan Sentiment was reported in line with expectations and did little to influence the markets.
Posted on 11th December, 2008 by Your Silverstar Team
After a nice rally yesterday afternoon, prices are again higher today and are testing resistance at the best prices of 2008…so stay tuned, as things can change quickly.
The Initial Jobless Claims were 573,000, far higher than expectations of 525,000 and the highest in 26 years. The data shows that businesses are laying off workers at a rapid pace as the current recession drags on.
In other economic news, the Trade Balance for October was reported at -$57.2B, wider than the expected -$53.5B. The weak US economy pushed down exports and imports in October, but the overall deficit rose as the volume of oil imports jumped.
The US House voted 237-170 last night to approve emergency loans for GM and Chrysler shifting the focus to the Senate, where Republican opposition threatens to delay or kill the legislation. The uncertainty on the outcome of this plan is putting a little pressure on stocks.
Posted on 24th November, 2008 by Janet French
It sure is crazy what’s happening out there and I completely understand many of the concerns I’ve been hearing from you. That’s why I spend my time studying the market everyday and proactively staying on top of the changing landscape in the lending industry, so I can help you make great, well-considered choices for you and your families future.
So Why Buy Real Estate Now?
Many people are struggling to decide if it’s the right time to buy real estate. Although we haven’t seen the bottom yet, who knows exactly when that will happen? I don’t have a crystal ball, do you?
But what do we know for certain? There are Two Ways to Make Money with Real Estate
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Posted on 4th November, 2008 by Janet French
FUNDS TO CLOSE for FHA
As the up and downs continue, many of my clients call wondering how they are going to get the funds needed to purchase a home. There are many alternatives available depending on their own particular situation but FHA may be the answer they are looking for. ***Some of these FHA guidelines may have additional investor and industry restrictions so verification per loan is necessary.
After today’s election, I believe that many people are wondering if the market will return to “normal”. Personally I think we are in for a very long hall in regards to the ups and downs of not only the real estate market but the economy in who. Regardless of anyone’s personal views, it is always prudent that to meet with your client to determine how much and from where they are going to get their down payment and closing cost funds. Below are just 3 of the 22 Important Ways to know well ahead of the closing date before your client starts shopping. Make your transactions smooth sailing from start to finish by being knowledgeable from day 1.
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