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Mortgage Rates Report- August 28, 2007- Lock All Loans

Our Mortgage Rates Report from last week advised clients to float their loans.  We still maintained a lock-in stance for all non-conforming and jumbo loans as that market is changing daily.  Until Wall Street investors set the market for jumbo loans, we maintain that stance.

The advice was fruitful to those that heeded it.  Rates decreased an average of .125% this past week.  Now, we think it's time to reap that reward and lock-in interest rates for all loans at application.  Mortgage bonds are trading near their 200-day moving average which means that the next 2-3 days may show the absolute best rates in 6 months on the fixed-rate mortgage side.  We think there is more risk to rates rising before the Fed meeting in September than there is opportunity for lower rates during that period.

One of our portfolio lenders is offering an annual ARM, interest only,  at 5.5% with an APR of 6.44%.  This means that the first year is locked in at 5.5%, the second year at 6.44%, and then the loan becomes a LIBOR-based ARM.  There is no pre-payment penalty associated with this loan.  We particularly like this loan product because we believe that interest rates are in a 12-24 month downward trend; we think there will be some opportunities to refinance to a fixed rate loan as low as 5.5% in the next two years.  Borrowers with a short-term horizon (meaning they may consider a move in 12-24 months) should ask for more information.  Admittedly, this is a teaser rate but sometimes teaser rates have the right application when the hold timeframe matches up to the interest rate term.

Mortgage Interest Rates*
Rates as of 08/27/2007:
 ConformingAPRPayment per
$1,000
JumboAPRPayment per
$1,000
5-Yr. Interest Only6.5%6.572%$5.427.25%7.350%$6.04
10 Yr Interest Only6.625%6.744%$5.527.25%7.411%$6.04
7/! ARM6.625%6.697%$5.527.25%7.350%$6.04
30 Year Fixed6.125%6.195%$6.087.5%7.602%$6.99
Annual ARM5.75%5.819%$5.846.125%6.219%$6.08
HELOC8.25%8.330%$6.888.25%8.357%$6.88
5 Yr ARM- Amo6.375%6.446%$6.247.125%7.225%$6.74
*Rates are subject to change due to market fluctuations and borrower's eligibility.

Barbara Corcoran on CNBC: August 27, 2007: Buy Right and Hold for Five Years

Barbara Corcoran, past contributor to Active Rain, was on CNBC this morning in a panel discussion about the future of real estate.

Ms. Corcoran's advise was something we've heard her say before:

1- She buys in up and coming areas around her hometown of New York- stick to your knitting

2- She buys with 20% down- prudent use of leverage

3- She makes money when she buys right- getting the right price

4- She holds for five years and "makes a lot of money when she sells"- real estate is a mid to long term investment.

5- During times of confusion, great opportunities pop up- Barbara mentioned that the owners who wouldn't return her calls and e-mails last month are doing it today.

Ms. Corcoran was challenged by the young interviewer,

READ THE REST AT www.MortgageRatesReport.com

Las Hipotecas en San Diego: Eligiendo el Agente de Bienes RaĆ­ces

Elegir a la persona correcta para representarlo en la negociación de la compra de su vivienda es una decisión de importancia. Cada vez que usted vea la denominación REALTOR® (con el símbolo de marca registrada) puede estar seguro que la persona es miembro de la Asociación Nacional de Corredores (NAR), y tiene el compromiso de cumplir con los estándares de la organización. Mi equipo y yo tenemos una red de profesionales que en el pasado han realizado una excelente labor con nuestros clientes y podemos recomendarle a un representante, además de la aprobación previa para adquirir su vivienda de contado.

¿Cómo puede saber cual Corredor (REALTOR®) le conviene a usted?

Busque a un profesional con experiencia en Bienes Raíces que por lo general trabaje con compradores. Un verdadero profesional irá más allá para demostrarle que querrá buscar lo mejor para usted y ganarse su respeto. La palabra clave es Sinceridad. Este tipo de Agente de Bienes Raíces actuará rápidamente para brindarle información sobre su equipo y sus métodos de negociación, al igual que cotizaciones y referencias de clientes anteriores.

Una vez haya programado una cita para reunirse con el Agente de Bienes Raíces y su equipo, ellos le brindaran un servicio de primera categoría. Usted debe conocer personalmente a cada persona con la que vaya a tener contacto durante el proceso de la compra. Ellos harán todo lo posible para establecer una relación a largo plazo con usted, en vez de verlo como un cliente pasajero.

Un representante del comprador con experiencia hará muchas preguntas con respecto a sus objetivos en vez de decirle lo que cree que usted quiere oír. También tendrá en cuenta sus finanzas para poderle ayudar a hacer la compra que más le convenga a usted. Tratarán de sobrepasar sus expectativas en todo sentido ya que cuentan con un sistema que proporciona la completa satisfacción del cliente.

¿Qué puede hacer por usted un Corredor (REALTOR®) con experiencia?

Un profesional con experiencia tendrá acceso al Servicio de Listado Múltiple (MLS) computarizado que cambia a diario. Él /ella podrá proporcionarle los nuevos listados en cuanto se hagan disponibles y también incluirá información importante sobre aspectos demográficos y valores de mercado en el área en la que usted desea comprar una vivienda. Esta persona será un fuerte negociador a su favor y lo guiará en los pasos a seguir. Utilizar los servicios de un profesional entrenado, le ahorrará tiempo y dinero a largo plazo. Es importante que su Agente de Bienes Raíces sepa cuales son sus objetivos para que así pueda eliminar los listados que no cumplan con su criterio.

También es importante que mi equipo conozca sus objetivos para que podamos proporcionarle el financiamiento adecuado para sus objetivos a corto y largo plazo. Nuestro trabajo no sólo es cerrar su préstamo, sino también ayudarle a construir un futuro financiero sólido ayudándole a manejar la deuda en el futuro. Utilizamos un sistema de base de datos que nos permite estudiar los informes y determinar cuándo el refinanciamiento es apropiado y beneficioso.

Llámeme directamente para ayudarle a encontrar a un Corredor (REALTOR®) en el que pueda confiar.

This article is provided by Brian Brady of World Wide Credit Corporation and is reprinted with permission from the the Loan Toolbox.  World Wide Credit Corporation is a San Diego-based mortgage firm.  World Wide Credit Corporation has Spanish-speaking loan consultants available to homeowners and home buyers needing mortgage advice.  Mr. Brady is a member of the National Association of Hispanic Real Estate Professionals of Vista, CA.

 

We will be posting these articles in Spanish weekly for Californians who consider Spanish their primary language.  Please call (858)-503-2318 if you need help with your mortgage. 

Mortgage Rates Report: August 8, 2007- Lock Your Loans

Home buyers should lock-in their interest rates.  The mortgage-backed securities market is responding to two events and mortgage bonds are dropping.

The Federal Reserve Bank did not raise the Discount Rate yesterday (as expected).  Fed Chairman Ben Bernanke spent very little time discussing the mortgage liquidity crisis and talked about containing inflation more.  We see this as positive because it shows that we have a Fed Chairman who is calm, amidst a crisis.

Why change our posture from floating to locking?  China is threatening to dump it's $1.3 Trillion in bond holdings as a response to our threat of trade sanctions.  It's a game of chicken being played by diplomats.  Their sale would hurt our markets for about 3-4 months; our trade sanctions would close their largest market.  Regardless of which way the political winds blow, we think our customers should be forward locking in rates as soon as they apply for a loan.

Down Payment Help For Long Beach Cops and Fire Fighters

The City of Long Beach offers a down payment grant, to Long Beach, CA  police officers and firefighters.  The grant can be up to $10,000 and can be applied to down payment and/or closing costs. 

To qualify for the program, you must meet the following requirements:

1. You must be a sworn police officer or firefighter employed by the City of Long Beach and have successfully completed probation.
2. You do not currently own a home in the City of Long Beach.
3. You must qualifiy for a fixed-rate or adjustable-rate first mortgage from a private lender.

AND...Here's the big AND:

 

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