There has been plenty of buzz about the portion on the President's stimulus package that could possibly raise the loan limit on conforming and FHA loans. So what does this mean. Well if you have a loan of $600,000, instead of a 30 year fixed rate at 7% (approximate as of 1/29), you could get a 30 year fixed rate at 5.5%. The payment at 7% is $3991.81. The payment at 5.5% is $3,406.73. A difference of $585.08!!!! Before you get too excited, there are caveats, of course. VALUE being the biggest factor. Everything will be great if your loan is 80% of the current property value. If it's not, then you may have to deal with PMI and that will increase your payment!!! OK, OK, I won't get negative. Anything is a positive at this point. Stay tuned, there is new news on a daily basis.
Just a reminder, if your loan is $417,000 or under or if you are purchasing a property that will fall in that range, INTEREST RATES ARE STILL LOW. Call us and we'll let you know what's possible.
Our next conference call is February 21st, 12-12:30 p.m. Build wealth through real estate. Be in the game while most aren't!!!!
Tuesday, January 29, 2008
Tuesday, January 22, 2008
FED CUTS RATE
In a surprise move this morning, the Federal Reserve lowered the Fed Funds Rate by .75% to 3.50%. This move was prompted by an emergency meeting last night as global equity markets sold off significantly due to foreign investors' fears of a US recession.
While many believe that a cut to the Fed Funds Rate results in an immediate decrease to mortgage rates, this is not true. In fact, on several occasions in the past, a cut to the Fed Funds Rate resulted in mortgage rates going higher in following weeks.
Currently we are enjoying mortgage rates at three-year lows, which are very near all time lows. However, in almost every case when we have reached these levels in the past, rates have reversed and started moving higher, sometimes a lot higher. I would advise making an application today to capture a phenomenal interest rate.
While many believe that a cut to the Fed Funds Rate results in an immediate decrease to mortgage rates, this is not true. In fact, on several occasions in the past, a cut to the Fed Funds Rate resulted in mortgage rates going higher in following weeks.
Currently we are enjoying mortgage rates at three-year lows, which are very near all time lows. However, in almost every case when we have reached these levels in the past, rates have reversed and started moving higher, sometimes a lot higher. I would advise making an application today to capture a phenomenal interest rate.
2008 Real Estate Market Outlook
There is good news!! Mortgage rates (especially for loan amounts $417,000 and below) are at 18 months lows. Rates today (01/17/2008) are tracking 5.5% - 5.875% on rates 30 year fixed. 3, 5, 7 and 10 year hybrid fixed/ARM rate loans are also hitting 12 month lows. A 3 year fixed this morning (01/17/2008) is at 5.5%
What does this mean? If you have a loan that will adjust in the next 12 months call us!! It is worth working the numbers. If you have a second on your property, you may be able to refi the first only!!
Values are still playing a big roll in re-finances. If you purchased or refinanced late 2005, 2006 or 2007 we will first take a look at values.
Also, the FHA Secure loan introduced by the governments to assist those who have loans adjusting and who will not be able to afford the new payments is a true and viable solution. There are tight guidelines, so PLEASE call us for details.
Rates for loans $417,000 and over are tracking in the 6.25% -6.75% range. The rules of mortgage financing have not changed…credit score, fully documented income, and money in the bank, and value for refinances, are still the guiding principles.
The number of institutions lending money is still shrinking. We are all aware of the proposed merger of Bank of America and Countrywide Home Loans. We are likely to see more of that. Many rumors are out there about other proposed mergers.
What is happening in Real Estate? Well… values have trended down in most counties in California. However there are areas that have shown increases from 2006. For instance 29 cities in the County of Los Angeles had an increase. Manhattan Beach had a 50% increase with 21 sales in the month of November. Culver City had a 45.4% increase with 23 sales. The city of Los Angeles had a 5.77% increase with 485 sales for the month of November.
Next month on our conference call we will talk about other areas across the nation that are showing promise. One area - NEW ORLEANS!
This morning (1/17/2008) on CNN, they talked about the rental market. And if rents were up or down in areas as a result of foreclosures and sellers who can’t sell. In Atlanta, Houston, Washington DC and Phoenix, rents are down. But in New York, San Francisco and Boston rents are up.
Multifamily residents has the most potential for expansion. Because many 1st time home buyers have opted to wait, those who have lost their homes have returned to the rental market.
So negotiation is KING! If you have decent credit, money and verifiable incomes negotiate on short sale/foreclosure properties. There is true long term benefit. We will also talk about partnering and investment club benefits.
Don’t be scared!! Now is the time!
What does this mean? If you have a loan that will adjust in the next 12 months call us!! It is worth working the numbers. If you have a second on your property, you may be able to refi the first only!!
Values are still playing a big roll in re-finances. If you purchased or refinanced late 2005, 2006 or 2007 we will first take a look at values.
Also, the FHA Secure loan introduced by the governments to assist those who have loans adjusting and who will not be able to afford the new payments is a true and viable solution. There are tight guidelines, so PLEASE call us for details.
Rates for loans $417,000 and over are tracking in the 6.25% -6.75% range. The rules of mortgage financing have not changed…credit score, fully documented income, and money in the bank, and value for refinances, are still the guiding principles.
The number of institutions lending money is still shrinking. We are all aware of the proposed merger of Bank of America and Countrywide Home Loans. We are likely to see more of that. Many rumors are out there about other proposed mergers.
What is happening in Real Estate? Well… values have trended down in most counties in California. However there are areas that have shown increases from 2006. For instance 29 cities in the County of Los Angeles had an increase. Manhattan Beach had a 50% increase with 21 sales in the month of November. Culver City had a 45.4% increase with 23 sales. The city of Los Angeles had a 5.77% increase with 485 sales for the month of November.
Next month on our conference call we will talk about other areas across the nation that are showing promise. One area - NEW ORLEANS!
This morning (1/17/2008) on CNN, they talked about the rental market. And if rents were up or down in areas as a result of foreclosures and sellers who can’t sell. In Atlanta, Houston, Washington DC and Phoenix, rents are down. But in New York, San Francisco and Boston rents are up.
Multifamily residents has the most potential for expansion. Because many 1st time home buyers have opted to wait, those who have lost their homes have returned to the rental market.
So negotiation is KING! If you have decent credit, money and verifiable incomes negotiate on short sale/foreclosure properties. There is true long term benefit. We will also talk about partnering and investment club benefits.
Don’t be scared!! Now is the time!
Tuesday, January 15, 2008
What Are You Waiting For?
Rates for mortgage loans 417,000 and under are currently the lowest they have been in over a year. The opportunity is NOW, to get a great interest rate on a loan and negotiate for some great real estate deals!! Don't be frightened!!! Let's see what you can do.
JOIN ME THURSDAY FOR MY MONTHLY CONFERENCE CALL. The 2008 real estate/mortgage market outlook. Call us at 213-389-7888 to RSVP.
JOIN ME THURSDAY FOR MY MONTHLY CONFERENCE CALL. The 2008 real estate/mortgage market outlook. Call us at 213-389-7888 to RSVP.
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