Q: We have been told that the only mortgage option for us is a reverse mortgage. We can’t seem to get a clear answer to any of our questions from the so-called experts. Can you tell us if we can make payments to keep it from going in reverse so fast? Can you show us how we can use a reverse mortgage without using up all of our equity in ten years or less? Can you advise us on how to make sure of this? Do they vary in terms and costs from one lender to another?
A: Many of the so called “experts” who specialize in reverse mortgages seem to focus is on making the most money rather than having the most informed and well treated clients. I’ll answer your questions in order to the best of my ability.
Yes! You can make payments on a reverse mortgage and it will go forward and not in reverse. Many seniors who want a loan but do not want to go in reverse do not realize that they can make payments, OR NOT for as long as they wish.
It is often very possible to stretch the benefits over twenty years or more and still preserve as much or more equity than you start with. Scenarios like this are entirely based on individual circumstances o call me at 831-818-7700 or send email to email@example.com for individual guidance.
Costs and terms do vary from lender to lender and this is often the only bad news I have to share on the reverse mortgage process. It seems that the so called “experts” who focus primarily on reverse mortgages feel entitled to charge massive fees, sometimes pretty well hidden from unsuspecting seniors. I would advise any senior considering a reverse mortgage to take the time to compare what I have to offer to any quote thy may have, because I am fully committed to assisting my borrowers in making truly informed choices and my pricing is just as attractive as the pricing on my forward mortgages! Contact me before deciding on any reverse or forward mortgage to insure that you are paying a fair price for the best possible terms.
Q: We want to pull some cash out to do some remodeling and, since we are waiting for permits, we have waited to lock in a rate. Is it good to wait or are we in danger of rates moving up? What rate can we get today for our $450,00.00 refinance on a 30 year fixed with cash out and little to no closing costs. Our home is currently worth over $740,000.00 and, after the remodel, we think it will be worth over $1,000,000.00.
A: LOCK NOW!! The hot U.S. jobs market is threatening to overheat the economy, which will quickly lead to a Fed move to increase rates. Recent Fed raises have not affected mortgage rates much, but such strong employment numbers will be viewed as both inflationary and an indication that investors will be more likely to take risks in the market by moving money from bonds and mortgage backed securities into the stock market. BOTH of these distinct possibilities will push rates up at least somewhat.
So, if you have been waiting to lock in a refinance rate or the rate on your purchase loan, NOW IS THE TIME TO TAKE ADVANTAGE OF RATES BEFORE THEY MOVE UP. Call me at 831-818-7700 on cell, 831-655-2600 in Monterey and 831-475-2600, for specific individual guidance and individual pricing. You can also send email to firstname.lastname@example.org.
Assuming that you have good credit scores, you can obtain a rate with NO BORROWER PAID CLOSING COSTS on a 30 year fixed with a rate of 4% (4.0% a.p.r.). You can go lower with some cost paid and my advice is to call me ASAP to review all possible options.
Q: I've heard that the maximum loan amounts have gone up on the Fannie Mae, Freddie Mac and FHA loans has gone up. Where are those upper limits today?
A: TODAY the max Fannie/Freddie/FHA loan amounts are as follows: In Santa Cruz, Santa Clara and San Benito the max conforming loan amounts are $453,100.00 for one unit and $787,650.00 for two units. High balance conforming loan amounts are $679,650.00 for one unit and $870,225.00 for two units. In Monterey County the max conforming is $453,100.00 for one unit and $581,150.00 for two. High Balance limits are $615,250.00 for one unit and $787,650.00 for two units. Call for individual guidance!
Q: I am doing a cash-out refinance in order to get a down payment on a second home out of state. I was told that my loan was approved subject just the appraisal. That was when the questions started coming about what I was going to use the funds for. I was advised to disclose that I am in contract on a second home, so I did. Then more questions about what the payment would be and then what the tax and insurance would cost. Whose business is it anyway? Why could I just say that is nobody’s business?
A: Welcome to the well regulated and sometimes OVER REGULATED world of mortgages! In 2018 the residential loan application will expand from four to between twelve and fourteen pages. Some of the new questions that will require answers and, possibly additional documentation, are about reasons for cash out. Borrowers will be asked if they are contemplating any purchases that will require additional monthly payments of any kind—tax, insurance, Home Owners Association dues (HOA) or other undisclosed obligations.. They will also be asked if they are in contract on another property anywhere or if they are shopping for another property. If borrowers or lenders conspire to withhold such requested information, there will be the possibility of harsh punishments and fines. For many borrowers, this could create problems with the debt to income ratios, so the government has cautioned lenders that they need to ask questions and inform borrowers about possible penalties that could be assessed in the case of deliberate dishonesty.
For well heeled borrowers with high income and low debt to income ratios, these new rules are bothersome and seem invasive, intrusive and even insulting. However, the government feels strongly that preventing loans to be made that will result in higher debt to income ratios could endanger our mortgage system that has been so effectively reformed since 2008. If I were to advise a borrower to provide false information on issues that could change the borrower’s debt ratio, I would be in some very hot water. Borrowers who want to pull cash for possible future investments but are unsure if they will buy additional property are probably safe to tell us that they want to acquire additional funds for reserves and possible future investments that are undetermined at this time. Borrowers who do not want to have to provide so many answers may want to pull cash before contemplating any investment or purchases that would require extra examination. The MERS system (Mortgage Electronic Registration System) tracks property ownership coast to coast and mortgage activity, so it is becoming harder and harder to hide things from the MERS report that now goes along with all mortgage loans, so my advice is to DISCLOSE EVERYTHING to your mortgage advisor and use legal strategies to achieve mortgage and real estate goals. I can be reached at 831-818-7700 to assist in mortgage planning seven days/night a week or at email@example.com. HAPPY NEW YEAR TO EVERYONE!!!!!!!
Q: The new tax bill seems is being received by Wall Street with a lot of optimism. Since you often say that what is good for stocks is bad for interest rates, I wonder if we should quickly sell and buy a new home or wait for prices to drop. We are also worried about higher interest rates—do you thinks rates will go up a lot in 2018?
A: First of all, everyone is reading this on Christmas Eve, so Merry Christmas and Happy New Year as well as blessings to all people of all faiths on this day that is historically centered around the concept of Peace on Earth and Goodwill to all Mankind. Let’s all envision peace and prosperity for everyone!
The real estate markets around the country are showing strong competition and growth in both price appreciation and the number of sales. With employment at the highest levels in almost twenty years, it is expected that interest rates will rise over the next year, which could push mortgage rates up as much as a half of a percent and maybe more. Slightly higher rates could push payments up as much as $140.00 to $160.00 per month on a $500,000.00 loan and that is NOT expected to put a dent in buyer demand as long as employment hold steady. So, if you are anticipating that you would borrow $500,000.00 to $1,000,000.00 and $140.00 to $300.00 per month might make a big difference to you, then my advice is to start planning to list your home and find a new one. If that kind of payment difference is not consequential to you, then you can wait and expect the strong market with low inventory and competition for the most desirable properties to continue.
ANYONE WHO HAS BEEN WAITING TO REFINANCE to consolidate debt, remove mortgage insurance, lower payments or remove co-signers, IS ADVISED TO CALL ME AT 831-818-7700 OR SEND EMAIL TO JCHUBB1@GMAIL.COM SOONER RATHER THAN LATER TO TAKE ADVANTAGE OF WHAT MAY BE THE LOWEST RATES FOR THE NEXT 1-2 YEARS.
Q: We were told that we should look at the FHA loan instead of a conventional loan for our home purchase. Can you tell us the difference between the two options?
A: FHA loans offer flexibility on lower credit scores, lower down payment requirements, flexibility on unlimited blood relative co-signers and credits to help to pay all or some of your closing costs and pre-paid items such as an impound or escrow account. On the downside, the mortgage insurance premium on FHA loans cannot be removed like PMI (private mortgage insurance) can be removed from conventional loans. Conventional loans have become MORE COMPETITIVE lately by starting to allow higher debt to income ratios. However, conventional loans are more costly for borrowers with lower credit scores and less flexible in the area of reserves remaining in savings after a home purchase. The best way for you to make an informed choice that results in the best program for your individual circumstances is to consult with an experienced mortgage source who offers both types of loan programs. You can easily accomplish this by calling me or sending email to arrange for a personal, private and FREE consultation. Happy Holidays!
Q: What does the Fed rate hike mean for mortgage rates gong forward? Is it still a good time to refinance or buy a new home?
A: Actually the GOOD NEWS, at least short term, is that the bond market and mortgage backed securities were very happy with the move and it actually PUSHED MOTGAGE RATES DOWN A BIT. How long bonds and MBS remain happy will, of course, depend on many other factors, such as spending, employment and inflation.
With rates hovering just above HISTORIC LOWS, it is STILL A GREAT TIME TO PURCHASE OR REFINANCE. With chances of higher rates on the horizon, NOW IS THE TIME TO ACT. You can review your options by calling me at 831-818-7700 or sending me an email at firstname.lastname@example.org.
FYI: After the Fed hike, I was STILL OFFERING 3.875% (3.875% A.P.R.) WITH NO BORROWER PAID COSTS FOR MANY ELLIGIBLE BORROWERS. Some restrictions due to credit scores, income and loan to value may apply, so call for an EXACT INDIVIDUAL QUOTE.
Q: Why have interest-only loans become so scarce? My financial advisor likes them because she says they will allow me to invest more money at a higher yield than the mortgage rate? Do you now of any good interest-only programs that we could look at?
A: YES!!! WE HAVE A NEW INTEREST-ONLY LOAN THAT IS FIXED FOR 5,7,10 OR 30 YEARS WITH AN INTEREST-ONLY PAYMENT OPTION FOR THE FRIST TEN YEARS. IT'S WORKS FOR PURCHASE OR REFINANCE AND GOES AS HIGH AS $1,500,000.00!!!
This amazing new program offers a lot of flexibility, is easy on credit scores and goes to HIGH DEBT TO INCOME RATIOS like the FHA loan but requires NO MORTGAGE INSURANCE. The program works for properties up to 40 acres and can even be used to purchase to refinance rental properties. THIS IS THE ONLY PROGRAM TO FUND JUMBO LOAN AMOUNTS WITH SO MUCH FLEXIBILLITY. Call me or send email to find out how this program could help you purchase or refinance.
Q: I had to agree to pay cash to get my offer accepted, but I'm going to be taxed on my IRA/401k withdrawals. Can I refinance and put that money back in my retirement accounts before it becomes taxable? Are there any extra fees? What rate can I get for a $600,000.00 loan on a home that I am paying $2,000,000.00 for?
A: YES!! You can do what we call "delayed financing" immediately after closing with CASH. Then you CAN put retirement funds back in retirement accounts before those funds become taxable. Consult your tax preparer for exact figures based on your individual situation. In Santa Cruz and Santa Clara, you can get a rate of 4.25% ( 4.29% a.p.r.) for 0 points and $1500-$2000 in total closing costs or 4.375% (4.375% a.p.r.) WITH NO BORROWER PAID COSTS. The "break-even period" on the lower rate at minimal cost is less than 2 years for most borrowers. Call for individual guidance and strategy advice.
In MONTEREY COUNTY, your maximum loan amount for this program is $575,000.00 on one unit properties. So, in Monterey, we would throw on a NO COST equity line along with the fixed rate first to complete a $600,000.00 loan request. This PIGGY BACK credit line can help borrowers in all counties get conforming fixed rate purchase loans without having to apply for the more difficult and costly "true jumbo" loans. Buyers in the more expensive areas of Santa Cruz, Scotts Valley, Carmel, Pacific Grove and Pebble Beach can benefit from the newly revitalized PIGGYBACK PROGRAM.
"Delayed Financing" can benefit buyers who want or need to pay cash but wan to get retirement funds back into retirement accounts before they become taxable in 60 days from withdrawal. The rate and cost of this loan is about .125% to .25% HIGHER IN RATE BECAUSE IT IS CLASSIFIED AS A "CASH-OUT" REFINANCE. If you are in a situation where you have agreed to pay cash and need this delayed finance product CALL ME BECAUSE I HAVE SOME STRATEGIES TO ELIMINATE THE "CASH OUT" CLASSIFICATION IN SOME CASES. I can be reached on cell at 831-818-7700, 831-655-2600 in Monterey and 831-475-2600 in Santa Cruz.
Q: I’ve been BUYING, FIXING AND FLIPPING rehabbed properties for several years. I keep some and sell some, but due to the fact that this is my business, I do not qualify for loans from banks. Do you have any alternatives to standard financing?
A: YES!!! We are now offering some amazing NEW ALTERNATIVE construction loans and credit lines that can help you to purchase and rehab or build from the ground up and they DO NOT REQUIRE INCOME VERIFICATION!!! AND MORE GOOD NEWS - THE RATES AND COSTS ARE VERY RESONABLE!!!
There are some easy requirements that do make sense for people like you who have experience fixing and flipping or building for spec and sale. Experienced flippers or builders with track records can now get funds to expand their business easier than ever before. We can get you purchase money with a LOW DOWN PAYMENT and THEN PROVIDE A MAJORITY OF THE FUNDS NEEDED TO BUILD FROM THE GROUND UP OR FIX AN EXISTING PROPERTY WHICH YOU CAN THEN REFINANCE OR FLIP AND THEN REPEAT THE PROCESS. Call me at 818-7700 or send email to email@example.com for a free consultation and individual guidance on how you can best take advantage of these amazing new programs.
We also have new programs that will help you to buy rentals USING JUST THE RENT TO QUALIFY FOR THEPURCHASE LOAN OR JUST YOUR LAST 12 BANKS STATEMENTS TO SUBSTITUTE FOR ANY OTHER INCOME VERIFICATION!!!
Q: In Monterey, our maximum loan amounts are $575,000.00 which is less than the $636,150.00 limit in Santa Cruz and Santa Clara. Whether we buy our new home in Monterey or Santa Cruz, we want to borrower more than the limit. Any suggestions?
A: I’m sure you remember the old term “80-10- 10” where the buyer put 10% down and got a “piggy-back” program with a first and second loan, which was usually a line of credit. WELL THE GOOD NEWS HERE IS THAT THE “PIGGY BACK” IS BACK! You can get a first loan of $575,000.00 in Monterey or $636,150.00 in Santa Cruz and then get up to $500,000.00 on a fully amortized credit line or one that provides for 10 years of interest only payments. This wonderful and flexible program is helping to mute the pain of higher home prices and lower maximum loan amounts. As with any unique program one size does not fit all but I can help you to customize your approach to take maximum advantage of program features when we have a short discussion about your goals, income, assets and qualifications. Call or send email to arrange for a personal consultation that will include individual guidance and an array of options that you will find available to you.
Q: If, as you say, interest rates drop during times of uncertainty, why did rates not plummet this last week when we saw disturbing evidence of collusion with Russia in the 2016 election and, more North Korea warnings and a horrible terror attack in New York City? What are my no-cost options for a refinance of $420,000.00 on 30 and 15 year fixed loans?
A: Trump inherited an economy that had been slowly expanding for eight years and increased the rate of growth with business friendly moves. The stock market has boomed to new record heights on hope of promised tax cuts aimed at further increasing economic growth, elimination of many regulations and, most importantly, creating accelerated job growth while bolstering consumer confidence to new levels.
When there is so much good news for the economy, for workers and for the stock market, consumer confidence strengthens and consumers overlook stories about the election and, it seems, even terror attacks and dire warnings about North Korea. The Fed met last week and left rates unchanged but indicated they might raise rates in December due to the strong economy. THIS MEANS THAT TODAY'S OPTIONS OF 3.99% ( 3.99% a.p.r.) ON A 30 YEAR FIXED AND 3.5% (3.5% a.p.r.) ON A 15 YEAR FIXED MAY NOT LAST THAT MUCH LONGER.
Waiting for lower rates or lower home prices in today's economy might be a mistake, so my advice is to give me a call at 831-818- 7700, send email to firstname.lastname@example.org or go online to www.PACIFICINLAND.COM to arrange for personal consultation, individual guidance and answers to all of your mortgage and real estate questions.
Q: Is there really a "NO-COST" option for a revere mortgage?
A: Mortgage prices for all types of loans vary on an individual basis and, yes, there are low and no-cost options available for many reverse mortgage applicants. RESTRICIONS APPLY FOR ALL MORTGAGE LOANS! Call me for a quick overview of what you might expect and go to PACIFICINLAND.COM to read my commentary about the good and bad news about today's reverse mortgage marketplace.
Q: Why are interest rates edging up? Where are they today for my $300,000.00 refinance on our home worth over $700,000.00?
A: Today your rate would be 3.875% with ZERO POINTS ( 3.92% A.P.R.) and 4.125% WITH NO BORROWER PAID COSTS ( 4.125% A.P.R.). What makes the most sense for borrowers depend on many individual factors as well as individual goals and statistics, so best to discuss this with me to make sure that you get the best program for your personal circumstances? Call me at 831-818-7700, send email to email@example.comRates have been volatile in reaction to the talk in Washington about “tax cuts” and “tax reform” because, in part, traders know that the biggest tax breaks will come for the biggest incomes and, since that is viewed as good for the stock market and its largest investors, it is viewed as bad for rates, so bond traders have been selling bonds in favor of stocks. Another factor is the “business friendly” move by congress, with Vice President Pence casting the tie-breaking vote, to eliminate class action lawsuits against big banks and credit card companies by consumers. Since investors are just reacting, they will soon take notice that large tax breaks will increase the deficit unless they are offset with cuts in spending and may be debated endlessly before real action is taken. Consequently our volatile Mortgage Backed Security ( MBS) market has had some wild swings on a daily basis. HOWEVER THE GOOD NEWS HERE IS THAT IN SPITE OF THE VOLITILITY, RATES HAVE STAYED WITHIN A RANGE THAT WE CAN STILL DESCRIBE AS HISTORICLLY LOW. This means that NOW is the time to take advantage of rates before they actually do make a significant move up. CALL NOW!
Q: Is there any such thing as a “no cost” reverse mortgage?
A: It is possible for many borrowers to obtain a REVERSE MORTGAGE WITH NO BORROWER PAID COSTS. This depends on both the maximum possible benefit and the initial draw to pay down a current mortgage or take cash out. Best to call me with questions, send email to firstname.lastname@example.org
Q: We are house shopping and due to the competition under the $850,000.00 price range; we are having to look for ways to stretch above our comfort level on the monthly payment. Any suggestions?
A: Wednesday's announcements on tax “reform” have buoyed financial markets that see growth and profits from lower taxes for the highest brackets and business owners. While everyone knows that talk is cheap, it does seem like the Republicans have more agreement on lowering taxes and tax rates than they have shown on healthcare. The markets are experiencing a period of extreme volatility due to the opposing influences of the uncertainty created by the North Korea tweet wars and the exuberance created by the prospect of lower tax rates. Consequently, stocks and bond yields and mortgage rates are bouncing back and forth on a daily basis. The Federal Reserve sees the prospect of lower tax rates as a reason to be even more committed to pushing up the discount rate and the prime lending rate in order to prevent a suddenly overheated economy.
All this means going forward, mortgage rates will have good days and bad days BUT MAY BEGIN TO GRADUALLY RISE AS THEY BOUNCE AROUND IN REACTION TO DAILY NEWS.
As fixed rates, WHICH ARE STILL VERY LOW AND HAVE NOT YET REALLY MADE A BIG MOVE, begin to rise, Adjustable Rate Mortgages ( ARMS) are becoming more attractive — especially for home buyers who are stretching to buy the home of their choice. ARMS up to 1/2% LOWER than fixed programs and for many buyers or property owners who need to refinance ARMS CAN COME TO THE RESCUE. Since the '90s, ARMS have proven to be relatively safe and a great way to bridge the gaps for many borrowers who need lower payments NOW. Call me at 655-2600 or send email to email@example.com for individual guidance on home purchase and refinances—CALL SOON BEFORE RATES BEGIN TO REALLY MOVE UP.
Q: I am buying a new home and thought I was getting a good loan at a fair price. One of my co-workers suggested that I call you to compare what you might have to offer. My loan had a small cost of $1,450.00 but YOU OFFERED ME THE SAME LOAN AT THE SAME RATE WITH A CREDIT TO ME OF OVER $4,500.00 WHICH IS A GIGANTIC DIFFERENCE TO ME! Is that really a reliable quote? How can there be such a large difference in cost? I need to close in two weeks, is there time to switch lenders? What is your advice?
A: YES that is a reliable quote. The difference is simply that one lender is charging more and one is charging less. As I have said in the past, MORTGAGE BROKERS MUST DISCLOSE THEIR COMPENSATION AND MORTGAGE BANKERS DO NOT HAVE TO DISCLOSE. So, if you are working with a broker, you may not have noticed the fee disclosure and if you are working with a banker, you did not have access to a full disclosure of their compensation and, therefore, no red flags came up. My advice is to be happy that you have an approved loan on a property that you are anxious to purchase. You should shop and compare a bit before you make commitments to a seller, two hard-working Realtors and your lender, who may be charging a bit more but has obviously done a good job for you to get your loan ready to fund on time. I may be prejudiced, but my view is that switching lenders at the eleventh hour is unfair after you “hired” them to do a job they have pretty much completed. Asking the seller to extend the time-line and the Realtors to hold their breath while you seek a new loan approval might put your purchase in danger and, in this competitive market, that would be a mistake. Next time call me at 831-475- 2600 if you want to see what a competitive mortgage broker has to offer. I encourage anyone out there who needs to purchase or refinance to call me to see what I have to offer before making a commitment to go forward with a loan. My email is firstname.lastname@example.org and toll free at 1-800- 368-REFI. You can also apply or make an inquiry at PACIFICINLAND.COM.
Q: We have been shopping for a new home in the $750,000.00 to $850,000.00 range. We keep getting outbid by other buyers who are willing to offer what we think are unrealistic prices. Our agent says that some properties are worth going higher on and some are not. How can we tell which one to offer more than the asking price?
A: After consulting some of our top Santa Cruz agents, I have the following input:
Thanks to Tom Tomaselli, Jim Furlong, Aurora Wonder Lowe, Tony Aprile and Martha Lopez-Chubb for talking the time to share their expert advice with me! RATES ARE HOLDING STEADY DUE TO THE PUSH AND PULL OF GOOD NEWS AND BAD NEWS. DON’T WAIT TO REFINANCE TO CONSOLIDATE DEBT OR PULL CASH FOR ANY REASON. Call me at 831-818- 7700 or send email to email@example.com for individual guidance on purchase or refinance loans.
Q: We are house shopping and due to the competition under the $850,000.00 price range; we are having to look for ways to stretch above our comfort level on the monthly payment. Any suggestions?
A: Wednesday’s announcements on tax “reform” have buoyed financial markets that see growth and profits from lower taxes for the highest brackets and business owners. While everyone knows that talk is cheap, it does seem like the Republicans have more agreement on lowering taxes and tax rates than they have shown on healthcare. The markets are experiencing a period of extreme volatility due to the opposing influences of the uncertainty created by the North Korea tweet wars and the exuberance created by the prospect of lower tax rates. Consequently, stocks and bond yields and mortgage rates are bouncing back and forth on a daily basis. The Federal Reserve sees the prospect of lower tax rates as a reason to be even more committed to pushing up the discount rate and the prime lending rate in order to prevent a suddenly overheated economy.
All this means going forward, mortgage rates will have good days and bad days BUT MAY BEGIN TO GRADUALLY RISE AS THEY BOUNCE AROUND IN REACTION TO DAILY NEWS.
As fixed rates, WHICH ARE STILL VERY LOW AND HAVE NOT YET REALLY MADE A BIG MOVE, begin to rise, Adjustable Rate Mortgages ( ARMS) are becoming more attractive—especially for homebuyers who are stretching to buy the home of their choice. ARMS up to ½% LOWER than fixed programs and for many buyers or property owners who need to refinance ARMS CAN COME TO THE RESCUE. Since the 90’s, ARMS have proven to be relatively safe and a great way to bridge the gaps for many borrowers who need lower payments NOW. Call me at 655-2600 or send email to firstname.lastname@example.org for individual guidance on home purchase and refinances—CALL SOON BEFORE RATES BEGIN TO REALLY MOVE UP.
Q: As you have said and predicted many times, interest rates seem to drop when there is tension and uncertainty around the world. With hurricanes blowing, North Korea sending “presents” to us and all of the political conflicts in the news, will rates go back below 4%? If so, how far down do you think they will go? When should we refinance a $320,000.00 loan with a current rate of 4.25%?
A: When stocks take losses, like they have lately AND when employment growth and/or consumer spending slows. A decrease in rates due to geopolitical tensions is helping rates. A slowdown in employment growth has also given the Fed pause to consider their interest rate policy. Fed President Neel Kashkari recently said “Maybe our rate hikes are actually doing real harm to the economy” after hiking rates four times over two years. This signals a pause in the Fed's determination to continue pushing rates up AND a willingness to leave rates alone if economic statistics or international/ domestic turmoil continue to spook investors. Stay tuned for updates on the topsy-turvy world of interest rates Homeowners should consider RATE REDUCTION REFINANCES WITH LOW OR NO CLOSING COSTS CHARGED TO THEM WHENEVER THEY CAN SAVE A REASONABLE AMOUNT ON THEIR MONTHLY PAYMENT. Today you can REFINANCE YOUR $320,000.00 MORTGAGE ON A 30 YEAR FIXED AT 3.875% WITH NO BORROWER PAID COSTS, 3.75% (3.78% A.P.R.) WITH VERY LOW COST OF $750.00 OR LESS; the fifteen year fixed rate mortgage WITH NO BORROWER PAID COSTS IS 3.25%-3.375% ( 3.25% A.P.R/3.375% A.P.R.). Send email to email@example.com, call me at 831-475-2600 or on cell at 831-818-7700 for individual guidance and current pricing and rate options. My 20 year fixed is a bit lower than the 30 and many find the 20 to be good options as well at 3.625% ( 3.625% A.P.R.) WITH NO BORROWER PAID COSTS—so call or send email while LOWER RATES ARE STILL AVAILABLE!!!
Q: You can't seem to make up your mind whether rates are going up or down! I've read your quotes from a Federal Reserve big wig that sounded like rates would not be going up and might actually be on the way down. The daily quotes I've been getting are not going down... what should I do about locking or waiting? Should I consider an ARM?
A: September 19 Fed made a statement from their latest meeting BRINGING EXPECTATIONS OF RATES GOING UP. The Fed announced that in October they would start GRADUALLY selling the U.S. bonds and mortgage backed securities (MBS) that they purchased over the last several years. When the Fed LOWERS OR RAISES the discount rate it has a direct effect on the prime rate which affects auto loans, consumer loans and credit card interest rates. When the Fed buys bonds and mortgage backed securities, they are creating lower rates by injecting competition in the market. So, now that they will begin selling off their supply of bonds and MBS, the expectation is that rates/yields will have to rise in order to sell the bonds and MBS that are put on the market on a daily basis.
I was surprised to see the news, but we all knew it was coming. It seemed that they were going to put this move off for a few more months, but they said October is when the unwinding of their bond holdings begins. How GRADUALLY they do this will determine how much immediate effect it has on mortgage rates.
INDIVIDUAL GUIDANCE FOR ANYONE WITH A RATE OVER 4.25% ON A 30 YEAR LOAN, OVER 4.125 ON A 20 YEAR LOAN AND OVER 3.5% ON A 15 YEAR LOAN ARE ADVISED TO CALL NOW AND LOCK SOON TO AVOID HIGHER RATES.
As fixed rates begin to move up ARMs are starting to look awfully good, since they are lower and have been historically just as safe as fixed in many cases. Call me at (831) 475-2600 or (831) 818-7700 for exact advice and individual guidance. You can also send email to firstname.lastname@example.org. RATES ARE STILL VERY ATTRACTIVE!!!
Q: I’ve been getting some reverse mortgage quotes and I’ve also been hearing that the maximum benefits in terms of loan amounts will change in October. Is this true? How will this change affect me if I owe $300,000.00 on an $800,000.00 home?
A: Reverse mortgage scenarios are based on property value and, most of all, your age. In general the change coming in October will LOWER MOST MAXIMUM LOAN AMOUNTS BY SLIGHTLY MORE THAN 10%. In your case that would lower your maximum benefit from $544,479.00 down to $273,544.00 — LOWERED by something in the range of $71,000.00!! This applies to all reverse mortgages, starting 10-2-2017.
Anyone thinking of a reverse mortgage CAN STILL GET THE HIGHER LOAN AMOUNTS BY TAKING FAST ACTION AND CALLING ME AT 831-475-2600. Please prepare yourself NOW BY GOING TO www.PacificInland.com AND GOING TO The Reverses Mortgage section. FILLNG OUT MY SHORT QUESTIONAIRRE WILL BE THE FASTEST WAY TO INSURE THAT YOUR OPPORTUNITY IS LOCKED IN BEFORE THE NEW LOAN AMOUNTS SHRINK. www.PacificInland.com YOUR DOORWAY TO MORTGAGE SUCCESS!!
Q: Why can’t I apply for my refinance online with your company?
A: You CAN! Call me old fashioned ( I NEVER thought I would say that….EVER!) – but, I think consumers and borrowers are better served by having a short conversation with me about their goals, qualifications, future plans and HIGHEST VALUED NEEDS---before they chose their mortgage loan product, term and total out of pocket cost. FILLING OUT MY STREAMLINED APPLICATION WILL ALLOW YOU TO APPLY FOR A MORTGAGE ONLINE AND NEVER HAVE TO TALK TO ME IF YOU DON’T WANT TO. However, it’s not ROCKET science and it does not take a ROCKET scientist to understand that a simple conversation based on getting the answers to the most important mortgage related questions will help define your best choices faster than a speeding ROCKET.
www.PacificInland.com, my new revised and improved website offers information, payment calculators and an easy way to get loan information, personal advice and fast funding for all types of mortgages—FORWARD AND REVERSE. You can still call me at 831-475-2600 or 831-818-7700 on cell seven days and nights a week as well. Either way I’m just as fast as any ROCKET, and more efficient and effective than most borrowers expect on their first time around. RATES ARE HOLDING STEADY AND IT’S STILL A GREAT TIME TO REFINANCE!
Q: I started a refinance to get some funds to pay down debt and purchase a time share. When my loan got approved, I went ahead and signed the papers to buy the time share. THEN, another credit report was pulled and the new purchase showed up and my loan amount was cut lower. What can I do?
A: LUCKILY FOR YOU, we found away to increase some of your income to remedy this problem of a suddenly higher debt to income ratio than you started with. The detailed and complete stack of personal income and asset information that you provided allowed us to step in and use the parts to your individual financial puzzle to craft a workable solution to this problem. This underscores some very important points that EVERYONE NEEDS TO CONSIDER IN THE PROCESS OF THEIR REAL ESTATE AND MORTGAGE PLANNING:
Q: What rate can I refinance my $300,000.00 loan at today?
A: 3.875% ( 3.875% a.p.r.) with NO BORROWER PAID COSTS. Lower rates on 30, 20 and 15 year loans are also available with some costs, depending on rate and other individual statistics. Call me at 831-818-7700 for individual guidance.
Q: I've heard and read your comments on the factors that drive interest rates up and down. Shouldn't that mean that the North Korea-U.S. war of words would push rates downward?
A: YES It does. Factors that push rates up are usually positive economic news or bad inflation news that shows wholesale and retail prices going up too fast and eroding the value of the U.S. dollar. Rates go downward when more Wall Street Traders buy bonds and mortgage backed securities (MBS) than they did the day before. Traders buy more bonds and MBS when there is bad news or uncertainty existent or predicted in the world and in the world economies.
The latest “war of words” with North Korea has somewhat offset more positive news on economic growth and better employment statistics. Situations like this are usually temporary—they last as long as the news is current and then fade into memory when positive news outweighs the negatives. However, this temporary news seems to have some staying power since there seems to be no reasonable solution on the horizon. AND, the fact that our current positive economic condition and expansion in employment have been slowing building up ALSO tell us that any weakness in economic or employment statistics will still be considered by traders, who will shun bonds/MBS buy more stocks as long as they see higher profits and some stability in stocks. THAT is the story of the daily push and pull between positivity and negativity, hope and fear and risk versus security in the financial world—and THAT is why you need an experienced and knowledgeable mortgage consultant to guide you through the mortgage maze and TELL YOU WHEN AND WHY TO SELECTA PROGRAM AND LOCK IN A MORTGAGE RATE!Which brings to mind this question for BOTH REALTORS, BUYERS, OWNERS AND SELLERS: Do you want to riskANY transaction by working with the “order taker” and “non-expert consultant” That you can find at your bank, or do you want to WORK WITH A LEGITIMATE AND PROVEN EXPERT WHOSE CREDIBILITY, KNOWLEDGE AND EXPERIENCE CAN MAKE A GIGANTIC DIFFERENCE IN EVERY POSSIBLE SITUATION? Call me at (831) 475-2600 office, (831) 818-7700 cell or on email at email@example.com before you answer that question!