Mike’s Real Estate Show

Rates as of 6/29/07       

The 30 year fixed rate, as well as some others, came down, just a smidge from last week.  Next week should see lower than normal trading volume due to the 4th of July Holiday.  Could be a good week for bonds, and I’ll be sure to keep you posted!

Give me a call to get information for your sellers about offering buy downs for buyers!  It could be a great incentive for buyers.  To buy down the rate, the seller would be needs to pay about 2% of the loan amount to get the rate down to 6%, as of today’s conforming rates.  A Sampling of today’s rates follows – all rates are quoted without points.  Buyers can buy down their own rate buy paying points (1 point = 1% of the loan amount; 1 point will not buy down the rate one percentage point.  Please contact me for details and actual buy down rates)

Conforming                 fully amortized                        interest only

30 year fixed               6.50%                                      6.75%

3/1 ARM                     6.375%                                    6.625%

5/1 ARM                     6.50%                                      6.625%

7/1 ARM                     6.625%                                    6.75%

10/1 ARM                   6.75%                                      6.875%

                                    fully amortized                        interest only

JUMBO – up to $1million

30 year fixed               6.875%                                    6.875%

3/1 ARM                     6.875%                                    6.875%
5/1 ARM                     6.875%                                    6.875%

7/1 ARM                     7.00%                                      7.00%

10/1 ARM                   7.00%                                      7.00%

100% financing:          Mortgage Insurance may also be an option – here are some possibilities without MI.

30 year fixed – 80/20  - Conforming loan amount on the first           7.00% 1st / 10.25% 2nd – assumes 680 credit score and full document loan for 2nd pricing – better score, better pricing on the 2nd

30 year fixed – 75/25 – Conforming loan amount on the first           6.875% 1st / 10.25% 2nd – assumes 680 credit score and full document loan for 2nd pricing – better score, better pricing on the 2nd

Call for information on Blended rate 100% options with No MI.  I will evaluate and consult with client whether mortgage insurance is a better option.

Other loan options… I can provide additional loan options, including Alt-A loan products, Option ARMS, the Flexible Hybrid ARMS, Commercial loans, Home Ownership Accelerator Program, Construction Loans, Loans for Investment Property, Community Lending Program for those who might not qualify for traditional loans and much, much more!

Here’s the fine print:

Conforming limit is $417,000.00.  Rates assume impound account set up and except for 100% financing, assumes loan to value (LTV) no more than 80%.  Funds to be used for purchase.  Cash out refinances may incur higher rates.  Rates quoted with a 30 day lock.  Subject to qualifying borrowers and properties.  Rates quoted for fully documented loans.  Rates are as of 6/29/07 and are subject to change.  Rates are quoted WITHOUT points.  Borrowers may buy down the rate.  Each application is evaluated on an individual basis.  There may be better suited programs for borrowers the may offer better rates/terms as well as options for non-qualifying borrowers. 

Alicia Hodenfield

Investors Trust Mortgage

Direct line (707) 284-2718

Cell (707) 483-6299

Fax (707) 573-8109

1105 N. Dutton Avenue Suite 200 Santa Rosa, CA  95401

www.aliciahodenfield.com

 The national Association of Realtors has a special relationship with Lowes Home Centers and they occasionally send us tidbits for you the consumer. I thought you’d appreciate this small “how-to” article on Moving!! They say Realtors should move every few years so we’d have empathy for what our clients are going through!! Hope this helps! I feel your pain! Read the rest of this entry »

I spoke with a listing agent and he is rather exasperated as he cannot get the seller to a short sales transaction to return his calls. The Seller has 5 properties total which are all in foreclosure!! My take on the transaction is the Seller is asking for “debt relief” and is realizing if s/he goes forward with all the short sales on the properties the capital gains due to the “debt relief” may be just toooooo daunting! “Debt Relief” is the amount of forgiveness the Seller is asking the lender to take to make the deal. Example: S/he owes $575,000 in loans on the subject property. She gets the lender of record to take $525,000 so her “debt relief” is $50,000. The IRS is going to compute this as a “gain”! Multiply this by 5 properties, or for example purposes, $250,000 in “debt relief” and s/he’s going to owe the IRS, assuming a 28% tax rate, $70,000!!! Now, if she ‘walks” from the deal and let’s the bank foreclose, she won’t owe ANYTHING!! What would you do?
 What we find is once folks talk to a CPA, which we recommend by the way, they come back and say, “Look, I’m going to do a short sale to your client and have to pay these capital gains on top of loosing my home?? No Way!”  I think the transaction on the above example has hit that wall! With some short sales the amount short is NOT that huge. But in some cases it is just better for the Seller’s to walk. However, this is something they should consider from all perspectives. They’ll take a big credit hit and sometimes the “stigma” is too much for some families. One should consult a real estate attorney or CPA before making ANY decision in the above example or anytime when facing foreclosure difficulties.

Rates as of 6/22/07 

Next week there are quite a few high-impact economic reports coming out including Existing Home Sales on Monday, New Home Sales and the latest read on Consumer Confidence on Tuesday, Durable Good Orders on Wednesday and Thursday brings the Fed’s Monetary Policy Statement.  There is little chance that the Fed will change rates next week, but we will be looking to see what their outlook on core consumer inflation.  And finally on Friday the Core Personal Consumption Expenditure Price Index is released – this is the Fed’s favorite gauge of consumer inflation.  This could report good news for Bonds, which would be good for rates! Read the rest of this entry »

Survey shows Dads wish for their own “space”
 
While 87 percent of the final decisions about purchasing a home are made by women, a new study released by Homes & Land shows most men are claiming - or wanting - their own “space” in their house. The survey revealed that Dad also has very specific ideas on how to decorate his corner of the castle, even though 65 percent of the time, women are the sole decision makers for decorating. 

The survey was conducted by the Homes & Land Relocation Service Center among those fathers around the country requesting complimentary real estate magazines. Read the rest of this entry »

Friends and Listeners,

I’ll be gone for the next two weekends but Mr. Pete Phillippee of CountryWide Home Mortgages wil be sitting in for me. You’ll recognize is sage words of wisdom and he’s got a lot of “s’plainen” to do about these interest rates. The Bond market is getting hammered and the interest rates follow suit. So enjoy Mr. Pete for the next two Sundays. I’ll see you on the radio once again on July 1st!

Rates as of 6/15/07   

The first part of this week we saw loan rates increase as the yield on the 10 and 30 year bonds edged to their highest levels.  Mid week, we saw a stabilizing in the yield and yields began a bit of a decline.  So here we are today, with bonds continuing to rally – which is good for mortgage rates.  I’ll be watching what happens as there are some ceilings of resistance, but today looks much more optimistic than last week did, even though some of the rates quoted are about the same.  Remember – all rates quoted are without points – lower the rate by buying down the rate and paying points.  Ask me how. Read the rest of this entry »

 
How long must property be “held” for investment in a 1031 tax deferred exchange? This is one of the most commonly asked questions in an exchange transaction. Though the Internal Revenue Code and Treasury Regulations are silent on this issue, a careful analysis of case law yields some principles that can be stated with certainty.

Read the rest of this entry »

10 Quick and Cheap Ways to Upgrade Your Home - Looking to make a big splash in improving the looks of your home, but don’t have much cash. Here’s 10 suggestions you might try.

Common Mistakes Made with Money and How to Avoid Them
 Everybody makes mistakes with their money. The important thing is to keep them to a minimum. And one of the best ways to accomplish that is to learn from the mistakes of others. Here is our list of the top mistakes people make with their money, and what you can do to avoid these mistakes in the first place. Read the rest of this entry »