November Residential Lending Successes and News

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Good morning to the Thanksgiving of November !!!

Mortgage Rates Bounced Up – But Rates Remain Great .

Don’t Miss Out

Watching and waiting to buy? Wanting more bang for your buck? Now is the time.

What if you Are renting? We offer market-based calculations comparing renting vs the benefits of owning. Answers can be rewarding. Good news: We seek more than just the big numbers, knowing ‘affordability’ is unique for each and every individual and family. Our focus is to understand you, asking pertinent questions to help guide your financial future. Our concern is more about “livability”, than the industry standard of, ‘what you qualify for’.

More Good News: Bay Areas affordability index – for the past year plus – has improved – falling interest rates, rising wages, and home prices cooling from their peaks. Now is the time.

Now is a great day to refinance. Best, we have tools to help you calculate and decide the full monthly benefits of a straight refinance or consolidating debt. You will be surprised. We are ready to help today, for your better – more simplified – tomorrow.

Is now the time to finish Summer projects or consolidate credit cards – CALL today!

Added Benefits: In my 30-plus years in this business, the first priority is you, my client, offering my technical know-how, skills, and learned experience of the mortgage business. We know how to find our clients safe, sound, and secure loans, fit for them. Our goal: Be upbeat and well informed about your today and vision for tomorrow. Let’s talk. Our conversations matter.

Points of interest:

  • Interest Rates: Rates have risen off their lows, as cuts in rates by the Fed, should spur growth and possible inflation. Outcome: higher mortgage rates. Add to this the EU changeover from Mario Draghi to Christine LeGarde, has caused an upward movement in their rates – negative rates are less negative. What we must watch for is strength or weakness in US dollar, and liquidity.
  • Stock market: With improved trade talks with China, it is possible the US Dow may test the next technical peak – about 29,000.
  • Inverted Yield Curve: The last inversion of consequence, was for 3 months in 1998. Our latest inversion, a few months ago, lasted but 2 weeks.
  • Lending: Big banks are price aggressive in the purchase market. For refinance, rates belong to mortgage bankers and independents, having the flexibility to scale. Good News for you: New ‘interesting’ programs are coming to market. Bottom line: Their is plenty of money ready to lend – Let’s Talk. And if usual bank underwriting does not fit you, call today. With many new lending programs, there are new opportunities to own.

Market News

1) Savings Rates: From 1980-2007, US rates declined from 10% to 2.5%,, improving since then, now running at 8.1%. Our recent economic recovery helped spur new savings. Rates may also be up due to rising economic uncertainty. But savings rates jumped dramatically after the Trump tax cuts, strongly suggesting higher savings rates are being primarily driven by rising wealth/income inequality as the poor don’t save from tax cuts.

2) Income / Credit comparison statement by Chicago Fed: They present what maybe the first measures of inter-generational mobility – in the United States – based on credit scores. Their estimates cut across a variety of measures – measures with a fairly strong association between the financial health of parents and their children. The outcome is comparable to what researchers find, when using income data. This suggests relatively low rates of inter-generational income mobility – observed in the U.S. – is comparable to other advanced countries. This might also apply to financial health and the ability to obtain credit for economic advancement. There is wide-scope, further research needed to better explain the mechanisms under this high degree of inter-generational persistence in financial health.

3) Property Values: San Jose, year-over-year, shows a slight decline in single family property values – a bit more than 3 %. Good News: It appears isolated to San Jose, with most of the Country holding year-over-year gains. Yet, was this decline unexpected? Perhaps not, especially after a 28 % increase in 2017 – the first time in recorded history of a double-up market, in one year.

Discussion: Is there an immediate concern for a US recession? Good news: Not any time soon. Consensus gathered from the ‘I Survived Real Estate’, suggest it is possible a year out, with Dr Doug Duncan, chief economist with Fannie Mae, being more optimistic. Common to all was the concern the Federal Reserve would not lower rates or increase market liquidity. As it turns out, the Fed has lowered rates, increased liquidity. And if trade concerns with China are resolved, concerns for a near term recession are lessened.

Recent Residential Success Story:

Refinancing: Refinances are up. Why – Strong employment prospects and rapid decline in interest rates. For a number of our investors, this has been opportunity to pick up distressed properties and with the strength of our stronger economy, we are now replacing private loans with long-term bank loans at these great rates. Outcome: Stronger net cash flow to be applied to future projects. A great benefit of lower rates and our lending expertise.

Reverse mortgages: Taking care of Mom in need of 24/7 care? Accessing the substantial equity in the home – by use of a reverse mortgage – provided the children a way to keep their Mom in her home. They all agreed this was far better than having to sell Moms’s home.

Self-employed: Have great bank deposits, yet your tax returns show low income? We have the answer. Loans based on bank statement and stated income. Call today for details.

Capital Gain Tax-Deferral: Have a client – with California property – who wants to sell, but can’t – because of Capital gains Taxes? We have approved ways to defer such problems and thereby keep all your money working for you. A great opportunity – one not to be missed. Let’s start planning today. Call now.

Buying your next home: Two wonderful “tools”. The first is where clients can use their old home, as collateral for their new home!! Second, we have a tool whereby the current payment on the “old” home, does not count against your client, while they are settling into their new home. Excellent. You need options, tools, and alternative ideas? We have them. Call today.

Because You Matter

As you read, if questions come to mind, let me know. Your thoughts and opinion are important. Why? Because people and their best interest, are at the heart of my work. It is why I offer guidance –along with a complete set tools– to bring answers that work. After 30 years, you know and learn many things about many different circumstances and situations.

Call us, we know success.

Thank you for trusting me with yourself and your friends and family. Referrals are appreciated.

Call me – Your success is our priority.

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