Mike’s Real Estate Show

Before Pete left for the “Hot August Nights” which he and his son take in every year and parade about in Pete’s vintage “Corvair” (as in “Unsafe at Any Speed”!!), he wanted to reiterate the rates are still hanging good at around 6.25% with 1 point. If you wish to take advantage of these terrific home buying opportunites it’s vital to call Pete NOW!! Get pre-approved then give me a call and we can go from there!  

Email    Peter.Phillippe@imb.com   Prospect Mortgage Company
Pete Phillippe : Cell 707-481-2737
On the Web: www.pphillippe@imbhomelending.com

Fax #:    866-610-5264  707-535-1263 direct

The “Housing Assistance” Bill just signed by President Bush has a first time homebuyer tax credit of $7,500.

• This is the maximum amount allowed (10% of the sales price or $7,500).
• It also is for those who have NOT purchased a home in the past 3 years and is for your primary residence.
• Limited life-span–Homes purhased after April 9, 2008 and before July 1, 2009.
• Make over $150,000–NO credit
• It needs to be RE-PAID!! It amounts to a tax-free loan initially. You have to pay $500.00 per year for 15 years.
• Can be recaptured! Seller early than 15 years? Whatever’s left you pay THAT year!
• Move to another home? If within the 15 years you pay!
• Talk to your CPA to see if this is REALLY that good of a deal!

You hear me quoting Lou Barnes on my radio show every week. His genius is an ability to cut though the fluff and political shouting to the heart of the matter of a subject. Here he goes after the new “assistance” package. Part of the bill is the ability to ”refinance” your home to get out from under the big payment and loan amounts. Here are his thoughts which use numbers for a “national” audience. The thought process works for our area:

“The new housing assistance bill, dismissed here briefly last week, deserves a more thorough hatchet-job.
     It’s centerpiece is a $300-billion FHA loan guarantee (not money) to refinance under-water home “owners.” Consider a Bubble-Zone victim who bought a $200,000 home five years ago, made a 5% down payment and got a 5-year interest-only ARM for $190,000. The home has fallen 25% in value to $150,000. She has made interest-only payments since, and her $190,000 loan is entering amortization reset.
     Her rate is not bad, 5.50% even after adjustment. However, her payment will jump from $871 to a killing $1,167. To her rescue, the bill’s “Hope for Homeowners.” In the land of unfortunate acronyms, gotta call it HoHo.
     HoHo provides for a write-down of the mortgage to 90% of current market value, to $135,000, plus a 3% refinance fee to the FHA, $139,000 total. HoHo further provides a 1.5% annual surcharge; added to 6.50% current market equals 8%, amortized for 30 years is $1,020 per month. Better by a little, possibly affordable, equity negligible, pride failing. Then there’s HoHo’s anti-equity kicker: when the place appreciates in value (how many years ahead?), and she either refinances off the 8% or sells, HoHo will take half of any appreciation. I bet HoHo won’t split costs.
     While she considers HoHo humiliation, a new renter moves into the house next door, identical, rent $700. Millions of people just like her are now condemned as “Walkaways.” Read the rest of this entry »

Updates in underwriting as of July 24, 2008 Industry wide General Loan guidelines of the Secondary market   ( some variance with specific Lenders)

1. With Foreclosures , reestablished credit history now 3 yrs  after event before a new loan given, FHA is still just 2 yrs with re-established credit however.
2. No 60 plus mortgage lates within the last 12 months
3. Authorized users of credit trade lines will no longer be considered in credit decisions. .  Can’t piggyback on someone’s good history. FICO now is “not using” card holders good scores for the authorized user  to improve their own scores
4. On interest only loans, borrowers have to be qualified on the full principal and interest payment
5. Min. credit scores 640 for 1 to 2 unit properties , 680for three to four units . . .620 if LTV less than 75% of property value .  If lower then its FHA loan time (read on as Pete as many, many more new underwriting alerts!!) Read the rest of this entry »

The tales of bank “runs” (no, it wasn’t something they ate!-maybe junk “bonds”) but the runs we remember from “It’s a Wonderful Life” when the word gets out a bank may be facing insolvency–folks come and get their money! This is what happened with IndyMacBank. One of the big boys (4th largest), solid as shale in a hillside!! Read the rest of this entry »

Other helpful traveling sites
for bargains and advice:

Airfare:
www.southwest.com
www.airfarewatchdog.com
www.webflyer.com

Cruises:
www.cruisecompete.com
www.cruisemate.com

Lodging:
www.biddingfortravel.com

Bed & Breakfast:
www.bedandbreakfast.com

Condo-Apartment Rentals:
www.homeaway.com

Quick Vacation Packages:
www.lastminute.com
www.luxurylink.com

Travel Insurance: www.travelguard.com

Airport Parking
www.airportdiscountparking.com

Amusement Parks
www.aaa.com
www.themeparkinsider.com

National Parks
www.us-parks.com

Check out these helpful websites for finding the best values in travel bargains!
Pressed for Time Traveler:
Airfares: www.kayak.com
Lodging: www.tripadvisor.com
Car Rental: www.orbitz.com

Best-Deal Traveler:
Airfares: www.farecast.com
Lodging: www.priceline.com
Car Rental: www.hotwire.com

International Traveler:
Airfares: www.lowestravel.com
Lodging: www.laterooms.com
Car Rental: www.autoeurope.com

Save Money at Amusement Parks
Vacation Tips for Family Theme Park Savings

Are you planning a trip to a theme park this summer?  If so, it’s possible to pay a bundle for tickets, lodging, and meals if you don’t plan ahead.  The good news is you can visit somewhere like Universal Studios, Disneyland, or Six Flags and have a good time without spending all your money.  Read the rest of this entry »

Prospect Mortgage , a “Direct Lender”
Loans to 412,000,  now 6.375% , 1 pt.

Rates went down a little with decrease ( a little) in oil prices  . . still overall inflation concerns with higher food prices however. A lot of uncertainty

Email    Peter.Phillippe@imb.com
Pete Phillippe : Cell 707-481-2737
On the Web: www.pphillippe@imbhomelending.com

Fax #:    866-610-5264  707-535-1263 direct
Subject:  30 day locks on rates shown for clients  as of date shown above

Up to $662,250  30 yr fixed is 6.375 at 1 pt  ,  5/1 program is 6.0 to $417,000% at 1 pt.
FHA 30yr fixed 6.5  1  pt  to $362,790  up to 97% LTV’s . FHA to $662,500 now 6.75 1pt

Fixed rates are where “it’s at” right now . . . .  How about a “buydown “ of the rate for a buyer?  Call me to see how it works for potential purchasers.  A different way to apply a closing cost credit from the seller and get more people qualified to “buy”.

Remember, I reimburse appraisal fees at closing for you and your radio show listeners!!

July indexes, 1 yr. Libor is 3.34, prime is 5.0 ,  1 yr constant maturity treasury 2.38
Indexes have moved up slightly each of the last three months , except the prime rate

APRs not calculated, full doc examples with 680 fico scores  . . .30 day locks shown on rates. Stated income, 40 yr terms, interest only loans, available  . . . Rates and points can change depending upon loan to value, credit scores and purpose of loan.  Information intended for the Real Estate community only, Equal Opportunity Lender, rates and programs subject to change

Affordable and Green - Sensitive Luxury Homes in the Heart of Healdsburg

 The new Foss Creek Villas condominiums are Located on the corner of Grove St. and Foss Creek Circle between “The Grove” and the “Park Point Health Club”. This newly renovated property is Healdsburg’s first condominium conversion and with 40 condominiums, is Healdsburg’s largest new condominium community.

Two years of extensive renovation and landscaping have artfully transformed this key 3 AC property of Grove into a tasteful, upscale asset to the city.  Vesna Breznikar, a Healdsburg artist and designer, chose the colors and fixtures that brighten and enhance both the Villas and the surrounding neighborhood. Roy Hurtt of Healdsburg did all the painting and trim. The rest of the work was predominantly completed by Healdsburg contractors and suppliers. Read the rest of this entry »