Rocktober 2020 Residential Lending Successes and News

Good morning to Fall Fun of October,

Mortgage Rates Say Now is the Time


Points of interest – Relevant to you !! 

Good News: Home sales continue healthy and for refi’s – incredibly strong. The Good News: Sellers continue selling and Buyers are ready for action. This increasing confidence lets everyone know that fake fears cannot stop us. What is important – and real – to us: Our homes are far more than simple numbers. It’s about people and families and neighborhoods.

Points of interest:

  • Refi mortgage rates are nudging up. Why? There is a “mark-up” fee of ½ point being added to each refinance loan. Why? To cover “direct” lender costs associated with rules of forbearance – due to Co-Vid. It is an “adverse market fee” and a reasoned response. 
  • Interest Rates: Rates continue great. VA rates and FHA rates are still in the 2’s. Refinance for Veterans: 1) Refi from conventional into a VA loan, and 2) Rate reduction refi’s have NO income, NO asset documentation.  If a Vet? Call today.
  • CA Jumbo: WE still do self-employed, WE still do 80/10/10, in addition to all the conventional Jumbo loans. Call. Let’s make it happen, today.
  • Underwriting: Purchases – first priority of the underwriterTurn around time can be a quick couple of days. Amen. How about Refinance? Patience wins. Start now, today.

Key to Success: Start the paperwork today. Let talk.

  • Housing: Trying to wait out Sellers for a price drop? Such days seem over. Seller’s are confident and holding steady. They recognize these are great rates and a big benefit for Buyers – each month. Don’t miss out !!
  • Stock market: Fed and DC policy have successfully lifted differing stock exchanges from lows to highs.  

Market News

1) US Economy: Headlines remain, yet resilience is our hallmark! One challenge: Will Congress re-supply the short-term money – needed by small business – to keep employees hired and employed? A second challenge concerns families with school-aged children. The answer: Open schools, now. They will be safe. The many thousands of small business owners need our help and need our schools to be opened. Time will heal and we can help – Vote.

2) Employment: The latest jobs numbers show 660 K new jobs. Excellent. But for now, 700 K temporarily left the job market. Net effect: Unemployment rate dropped double what it should have due to the large number leaving the workforce. Still, this is better than expected.  More Good News: Hourly wages moved up 4.6 % last month and now up 4.7 %.  But More: Weekly earnings – the real key – moved from up 5.3 % to up 5.6 %. Wow.

 What does this mean for home buying? Using the math, it means people can afford about 15% more home, which is greater than home prices have risen. A positive for real estate. Affordability improving.

3) Real Estate: Going further, this affordability – income up 5.6 %, – with a 40 % debt ratio, indicates the market can support a 14% increase in value.  Don’t miss out on these low rates!!

 Interesting: some Real Estate stats show 19 % of buyers looking in rural areas – up from 9%.  Outcome: over 10% appreciation in rural areas vs 6 % appreciation in urban areas. Let’s talk.

Residential Success Stories

Refinancing: It Is HotWith 80 % + of the economy working – and those owning homes, nearing 92 % employment– we are running full speed. Are you a homeowner? These very low interest rates and a call to action. Call today!  With dozens of lending partners, we are ready – today – to meet all types of financing needs – even what others call impossible.  Call Now !!

Do you have a great rate from lows of 2012 or 2016? Now maybe a good time to consider a 15-year loan? It is a great time and excellent opportunity to pay-off of your loan sooner and save big money. Keep in mind, a free and clear home, means opportunities and more choices. 

Consider a recent client. By moving to a 15-year loan, they shaved 7 years of monthly payments – 84 months off.  The great news: Only a 20% increase in payment. So before you decide – “yes or no” – I suggest we first talk. Here, we can scope out your specifics and review the numbers that matter. Here, we can discuss your expectations and compare outcomes. My first concern: What best fits your needs today and tomorrow. For most, the many benefits are tough to ignore. Are rates are excellent, so let’s talk today. A winner either way. 

The Good News: Rates are Awesome – New Homes or Refinance

Purchasing: Purchases are again possible for those who lost homes in the big financial melt-down. It was a rough and ugly time, yet the Good News: With the passing of time, one’s past financials and credit troubles, are no more. Home buying is again possible and now is the time. And, half of our buying clients are closing well under 30 days. The more complex, a bit longer.

Reverse mortgages: With rising home values, a reverse mortgage is a great tool for staying in one’s loved home and favored neighborhood. Though our grandparents seldom thought past living into their 70’s. Today, most are thinking well past 80.  Our Goal: Help each person remain pro-active in celebrating life – family, friends – and enjoy all they have accomplished.

Self-employed: These can be difficult times. So please. Let’s talk and review your unique situations and lay out workable options and best possibilities. I firmly believe in Small Business and respect those daring to be self-employed. This is the backbone of America and confirmed by business volume. We ARE getting it done for our Self-employed clients ! 

Buying your next home: Two very helpful “tools”. 1) A client uses their old home, as collateral for their new home!! 2) A tool whereby one’s current payment on the “old” home, does not count against your client, while settling into their new home. Excellent. You need options, tools, and alternative ideas? We have them. Call today.

*** Keep Your Cash & Defer Taxes ***

Capital Gains Tax Deferral: Ready for a a major shift in your life, but tax fears are holding you back? This may include: Closely held stock, owner occupied real estate, or a small business. If this is you, we have excellent strategies to reduce or defer capital gains taxes. This means keeping more of YOUR hard earned investment dollars, working for you. You have questions? Please ask. We love finding answers that meet your specific need. Call today.

Renting but wanting to Buy?

We offer market-based calculations comparing renting vs. the benefits of owning. Answers can be rewarding.Good news: We look beyond boiler plate, typical big numbers. We understand ‘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 “live-ability”, and less about ‘how big a home can I afford.’  A big first step, made better.

Because You Matter

Let’s talk. You matter: At the heart of my 30-plus year career is the priority of keeping my clients (YOU) first. You are my highest priority. It is why I offer each of my clients the best of my detailed know-how, tested skills, and practical experience. It is key to finding you a safe, sound, and secure loan – best fit for you. Keeping you informed and up-to-date, makes for better decisions. Call today.

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.