Weekly Wrap Up | What Happened to the Mortgage Rates this Week?
July 31, 2009
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"The Weekly Wrap Up" Presented by Jason Wheeler Just a quick note to update you on what happen with rates this week. It’s still a phenomal time to enter the Real Estate market or get invovled with some investments. Home purchases are up for the third month in a row. We won’t be in the office this weekend we’ll be getting away up to lovely Lake Tahoe. Check below for news on rates and Real Estate Investment Networking Events next week! Here we are wraping up Friday 7/31/2009 rates were basicly flat all week with a sharp dip this morning. If you had a chance to lock in a rate today the timing was perfect. The new supposed Bull Market in stocks was strongly driven by great earnings all week. Let’s hope that they can keep it up. You can look at weekly trends Here. July 31 (Bloomberg) — The U.S. economy shrank at a slower pace in the second quarter, a sign the worst recession since the Great Depression is winding down. Gross domestic product contracted at a less-than-projected 1 percent annual rate after shrinking 6.4 percent in the prior three months, the most in 27 years. Commerce Department figures showed today in Washington. Revisions showed the economic downturn last year was even deeper than previously estimated. Profits at companies from Caterpillar Inc. to Dow Chemical Co. signal the slump is easing as government efforts to revive lending and President Barack Obama’s stimulus gain traction. Consumer spending, which accounts for 70 percent of the economy, may take time to recover as job losses mount, eroding the growth analysts anticipate will start this quarter.
Until Next time Here is to your success! Jason Wheeler 925-285-2172
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What is the True Cost of the “No Cost Loan?” | Buying a Home in Contra Costa Bay Area | 7/24/2009 Market News
July 24, 2009
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You always hear about that "no cost loan" however the old adage is true there is no such thing as a free lunch. Ask your professional about what the true cost is of the "no cost loan" or call us at 925-954-7082 anytime and we would be happy to explain the differences, benefits and pitfalls of the several various ways to structure a mortgage. If you are buying property in the Contra Costa Bay area and you need a Mortgage Loan then we are absolutely top notch in customer service and consulting. We will find the right solutions for your sit your situation.
No fees but a higher interest.
In this option the lender offers to cover all the expenses related with the mortgage with the condition that the borrower accepts a higher rate of interest. The higher rate of interest will be charged during the whole lifetime of the mortgage. It is important that you ask for detailed estimates of the real costs of this no-cost alternative. This estimate should show the cost of the mortgage fees and how much extra interest you will be paying with the higher rate of interest.
Taking a loan to pay the loan fees.
This option of no-cost loan modification actually involves taking on a loan to pay for a loan, or at least the loan fees. With this option the lender covers the mortgage modification fees but includes the fees as part of the loan. This will mean the borrower will have to pay for the fees with interest as part of their modified mortgage. Again it is important to understand what the real costs of your no-cost mortgage modification will be. Ask for an estimate that details the real cost of your mortgage fees after paying interest on them for the length of the loan.
Lenders will often try to include a prepayment penalty clause in the mortgage or loan contract to discourage borrowers from changing loans in the early years of the modified loan. As far as you can you should try to avoid or reduce this penalty as they will reduce flexibility when trying to find a better deal in the future.
Until Next time Here is to your success! Jason Wheeler 925-285-2172 | Come to a FREE Bay Are Event |
Consumer Confidence Continues to Plunge.
July 24 (Bloomberg) — Confidence among U.S. consumers fell in July for the first time in five months as mounting unemployment and depressed wages shook households. The Reuters/University of Michigan final index of consumer sentiment decreased to 66, better than forecast, from 70.8 in June. A preliminary reading was 64.6. The biggest employment slump of any recession in the last eight decades may be making more Americans feel their jobs are in jeopardy. The growing insecurity, together with falling home values, is prompting households to limit spending and save more, meaning an economic recovery will take time to gain speed.
Consumers remain very cautious,| David Semmens, an economist at Standard
Chartered Bank in New York said before the report. They’re concerned about the outlook for jobs. Consumer spending will be fairly flat at best.
The confidence index was forecast to fall to 65, according to the median of 57
Real Estate Seminar in Fremont CA | Bay Area Real Estate Investor Meetings
July 22, 2009
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Until Next time Here is to your success! Jason Wheeler 925-285-2172 | Come to a FREE Bay Are Event |
FHA Loans With $8,000 Tax Credits | Bay Area Home Loans and Government Financing
July 22, 2009
FHA loans are back as good business. The Federal Housing Administration guaranteed almost 186,000 mortgages in June, a record tally for the agency, which has insured more than 34 million properties since its establishment in 1934. First-time homebuyers are in part driving the record push. Since late May, prospective purchasers have been able to use the $8,000 first-time homebuyer’s tax credit on FHA-backed loans. Part of the American Recovery and Reinstatement Act of 2009, the tax credit allows first-timers to pay for closing costs or even defray the 3.5 percent minimum down payment on FHA loans.
These long-standing loans continue to grow in popularity given the slumping economy and tight credit market. The FHA’s record performance in June smashed the agency’s old record of about 157,000 loans in October 2008. Before that, the record dated back to March 1994. “A primary reason government-insured loans have retained a high share of the purchase market is that these loans typically require lower down payments than conventional loans,” Orawin Velz, associate vice president of economic forecasting for the Mortgage Bankers Association, said in a news release. “In addition, lending standards tend to be tighter for conventional loans, especially for loans that require private mortgage insurance.”
FHA loans represent an affordable avenue for many first-time buyers. Anyone who has not purchased a home in three years gets that “first-time” status. But there are some strings attached for buyers looking to capitalize on the new $8,000 tax credit.
Prospective borrowers hoping to offset their down payment costs must utilize a proper FHA-approved lender. Otherwise, that $8,000 can be put toward closing costs or shaving down interest rates. First-time homebuyers also must meet a handful of other criteria. There are income thresholds that exclude individuals who make more than $75,000 or joint filers who clear $150,000. At present, first-time buyers can also decide when to claim the tax credit – either for 2009 or by filing an amended 2008 return. About a dozen states have started offering bridge loans to help spark home buying. These low- and zero-interest loans have to be repaid when the tax credit is applied. The FHA has also begun offering tax credit advance for prospective homebuyers who do not want to wait.
Until Next time Here is to your success! Jason Wheeler 925-285-2172 | Come to a FREE Bay Are Event |
7/22/2009 Market Updates | Hot Loan Programs and Bay Area Real Estate Investment Events
July 22, 2009
Good morning everyone and thanks for reading. We are in the office throughout the day today working on various real estate deals and fundings this Wednesday 7/22 so just call anytime at 925-954-7082. We would also like to invite you to our event this evening in Fremont if you would like to meet successful professional real estate investors and learn how you can get involved too. You can learn more about our event right here!
If you would like to learn more about some of the most popular inovative real estate financing programs available today check this out or give us a call and just ask. Rates are up a bit from yesterday so if you had the chance to lock great!
Check out our market commentary for the day below. Have a great day!
Until Next time Here is to your success! Jason Wheeler 925-285-2172 | Come to a FREE Bay Are Event |
Market Commentary 7/22/2009
U.S. MBA Mortgage Applications Index Rose 2.8 Percent Last Week
2009-07-22 11:00:02.0 GMT
By Shobhana Chandra
July 22 (Bloomberg) — Mortgage applications in the U.S. rose for the third consecutive week as refinancing and purchases advanced.
The Mortgage Bankers Association’s index of applications to purchase a home or refinance a loan increased 2.8 percent to
528.9 in the week ended July 17, from 514.4 in the prior week.
The group’s refinancing gauge climbed 4 percent, while the purchase index rose 1.3 percent. The worst housing slump since the Great Depression is steadying as falling prices make properties more affordable to buyers able to get financing. At the same time, record foreclosures and surging unemployment are hurting consumers, indicating any recovery in construction or economic growth will be slow to develop.
Home buying has stabilized albeit at a very low level.
Steven Wood, president of Insight Economics LLC in Danville, California, said before the report. Recent activity has been suggestive of a broad bottoming pattern in home sales. The mortgage bankers’ purchase index rose to 262.1 last week from 258.8 the previous week, today’s report showed. The refinancing gauge increased to 2,089.7, the third straight gain, from 2,009.4.
The share of applicants seeking to refinance loans climbed to 55.5 percent of total applications last week from 54.9 percent. Construction Gain
The report reinforces other signs the real-estate market is steadying. Housing starts jumped in June to the highest level since November, and building permits, an indicator of future construction, also climbed, the Commerce Department reported last week.
Applications rose even as mortgage rates rebounded. The average rate on a
30-year fixed loan rose to 5.31 percent last week from 5.05 percent the prior week. The rate reached 4.61 percent at the end of March, the lowest level since the group’s records began in 1990.
At the current 30-year rate, monthly borrowing costs for each $100,000 of a loan would be $556, or about $81 less than a year earlier when the rate was 6.58 percent. The average rate on a 15-year fixed mortgage rose to 4.80 percent, and the rate on a one-year adjustable loan climbed to 6.50 percent. Economist’s project prices will keep sliding as sales of distressed properties mount. Foreclosure filings reached a record in the first half of 2009, according to RealtyTrac Inc., an Irvine, California-based seller of default data. More than 1.5 million properties got a default or auction notice or were seized by banks.
Fewer Losses
Bank of America Corp., the biggest U.S. lender, reported a drop in
Second-quarter profit because of higher losses on credit cards and home loans, in part related to expenses to help homeowners modify loans. Chief Executive Officer Kenneth Lewis said the Charlotte, North Carolina-based bank sees signs that some loan losses may abate.
The Washington-based Mortgage Bankers Association’s loan survey, compiled
Every week, covers about half of all U.S retail residential mortgage originations.
Four Avenues for Real Estate Investment Success in the CA Bay Area Today | Event 7/22/2009
July 22, 2009
If you still see opportunities in today’s Real Estate market and would like to train with professional investors who want to help you create a five figure monthly income in today’s market get in touch with us today to learn how you can get invovled. Below are the four aspects of how we help people just like you get started in thier Real Estate Invesing Career.
- KNOWLEDGE: Successful investors know that knowledge is the key to success. Having a broad and deep understanding of the real estate investing game allows you to:
Recognize opportunities
Evaluate them quickly
Act decisively
leverage everything
We provide regular seminars on many aspects of real estate investing. Contact us for more information.
- CASH FLOW PROPERTIES: If you are interested in diversifying your investments to include income-producing properties, we can introduce you to a complete turn-key solution: a national network of real estate acquisition and management professionals who can deliver cash-flow-positive, instant-equity properties in great rental markets around the country with as little as 10% down. You can literally shop for great rental properties online. Key services include property acquisition, property management, tenanting services, incorporation and tax services, and much more.
You’ll have direct access to full comps or appraisals, mortgage documents, photos of the property and full financial’s. Contact us for a free online tour of currently available properties.
- IMMEDIATE INCOME: Do you have a strong sales and marketing background? Are you highly ethical, strongly money-motivated, and interested in learning investing? Contact us to find out how you can join our outstanding team. We do not put a cap on your up-side potential. We pay for results.
- COMMUNITY: Do you believe that investing is a team sport? We do! We can introduce to you a network of over 12,000 investors, brokers, lenders, lawyers, accountants, agents, property managers, deal locators and instructors so that you always have someone to consult to provide support, mentoring, advice and assistance with your next deal.
Call today for more informaiton at 925-285-2172
You’re Invited! Join us This Week 7/20/2009 | Real Estate Investor Meetings CA Bay Area
July 20, 2009
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7/20/2009 Market Commentary | FED Being Pressured to Keep Rates Affordable.
July 20, 2009
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Get in touch with us and call us anytime with questions on current loan programs, events and current qualifying guidelines! 925-285-2172 |
Rates 7/20/2009
- 30 Year Fixed Conventional $417,000 and Below 5.25%
- 30 Year Fixed High Balance $417K to $765k 5.825%
- 5/1 Conventional ARMs at 4.00%
Back from a wonderful weekend in the Northern CA Bay Area. We are in the office today and available until 7pm. Feel free to give us a call and ask questions about your situation. We are commited to to helping solve your financial issues. Check below for todays market factors as it seems FED is being pressured to do what it must in order to keep rates affordable..
Until Next time Here is to your success! Jason Wheeler 925-285-2172 | Come to a FREE Bay Are Event |
Bernanke May Hold Rates Down by Showing He Can Reverse Course
2009-07-19 23:01:00.7 GMTJuly 20 (Bloomberg) — To keep interest rates at a record low, Ben S. Bernanke
may have to show Congress and investors he can be as creative about soaking up cash
from the financial system as he was when pouring it in.
The Federal Reserve chairman will probably outline his strategy for exiting
the biggest monetary expansion in history when he delivers his semiannual economic
report to Congress tomorrow. Among the options: establishing term deposits at the
Fed designed to induce banks to keep money there rather than lending it out, said
Lou Crandall, chief economist at Wrightson ICAP LLC in Jersey City, New Jersey.
Laying out a plan now may give Bernanke leeway to hold down borrowing costs
for as long as it takes to reduce unemployment from a quarter-century high. To do
that, he first has to convince lawmakers and investors he’s ready and able to
contain inflation as the economy recovers.
“Bernanke needs to explain that the Fed has the tools to do the job and that
it intends to use them forcefully when it has to,” said Lyle Gramley, senior
economic adviser with New York-based Soleil Securities Corp. and a former central
bank governor. “That would help hold down inflation expectations and give the Fed
the opportunity to stay easier for longer.”
House Financial Services Committee Chairman Barney Frank said he expects
Bernanke to spell out how the Fed will end its unprecedented expansion of credit
when he testifies before the Massachusetts Democrat’s panel tomorrow.
‘Prepared to Unwind’
“I’ve urged him to be ready to tell people how he’s prepared to unwind some of
those facilities when it’s prudent to do so,” Frank said.
Bernanke is “very conscious” of worries that the Fed may end up rekindling
inflation, the lawmaker said.
Already, some investors are betting such concerns will force Bernanke’s hand.
Trading in federal-funds futures suggests a better-than-even chance the central
bank will raise its short- term interest-rate target by January from the current
range of zero to 0.25 percent.
Laurence Meyer, another former Fed governor who’s now vice chairman of St.
Louis-based Macroeconomic Advisers LLC, said policy makers will need to keep rates
unchanged a lot longer, perhaps until late 2011, to bring down unemployment.
The Fed’s latest forecast, published July 15, projects the jobless rate will
rise to 9.8 percent to 10.1 percent next quarter, from 9.5 percent now, and will
still be 9.5 percent or higher at the end of 2010.
Fed’s Holdings
Bernanke’s purchases of assets such as mortgage bonds and Treasury securities
pumped money into the financial system in an effort to lift the economy out of its
deepest decline in half a century. That helped to more than double the Fed’s
holdings to a record $2.3 trillion in December from a year earlier. The balance
stood at $2.1 trillion last week.
Meanwhile, banks’ excess reserves at the Fed rose to a record $877.1 billion
daily average in the two weeks ended May 20, from $2 billion a year earlier. Excess
reserves — money available for lending that banks choose to leave with the Fed
instead — averaged $743.9 billion in the first two weeks of this month.
While policy makers would like credit markets to recover, they don’t want
banks to lend that cash out all at once as the economy improves, because that could
unleash inflation, said William Poole, former president of the St. Louis Fed. So
the central bank is counting on its ability to pay interest on those reserves to
help keep a lid on prices.
“Interest on reserves is an important part of the exit strategy,” Fed Vice
Chairman Donald Kohn said at a conference at Princeton University May 23.
Not So EasyHot Loan Programs Contra Costa County | 203K Rehab Loans and Rates 7/17/2009
July 18, 2009
Get in touch with us and call us anytime with questions on current loan programs, events and current qualifying guidelines! 925-285-2172 Hot Programs!
- FHA 203K Rehab Loan. Perfect for today’s REO fix up environment. Get up to $30,000 upon closing for repairs and upgrades on your new home purchase.
- Contra Costa Mortgage Credit Certificates. Get up to 20% tax credits on interest paid on your mortgage throughout the year!
- 100% Financing with VA Loans!
- Government Programs up to 97% Financing. with $8,000 in Tax Credits for First time buyers.
- Fannie Mae Refinance Plus! Refinance your home up to 105% of the value.
Rates 7/20/2009
- 30 Year Fixed Conventional $417,000 and Below 5.25%
- 30 Year Fixed High Balance $417K to $765k 5.825%
- 5/1 Conventional ARMs at 4.00%
Rates are subject to changes without notice not everyone will qualify for any given program. Call 925-285-2172 for consultation and pre approval.
Solving Appraisal Issue’s | 7/15/09 Market Commentary
July 15, 2009
We’ve been working diligently to find ways to solve the appraisal issues that we are currently dealing with in the Lending industry. We are in the process of devising a system to get a fair appraisal on property that will get through underwriting very quickly. The HVCC laws of May 1st have been a thorn in the side of just abou everyone invovled in Real Estate the past few months. I am in the office today and available to answer your questions and concerns. Rates had a reprice for the worse today. As the stock market rally has effected the 10 year bond negatively. If you were able to lock last week or early this week you are in great shape. We are still looking at a 12 day loan contingency removal and if we have a full file we have been closing in 25 days.
Until Next time Here is to your success! Jason Wheeler 925-285-2172 | Come to a FREE Bay Are Event |
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Market Commentary – Wed, Jul 15 – 10:20 AM ET
Stock markets are rising for the 3rd straight session led by a positive earnings report by Intel, the world’s largest semiconductor, reporting that earnings per share came in at 18 cents versus the 8 cents that was expected. Intel also said that Q3 revenue will be better than forecasts. Intel (INTC) is part of the Dow 30 and a component of the S&P 500 Index.
Mortgage applications in the latest week rose said the Mortgage Bankers Association today. The MBA’s Index of Applications rose 4.3% in the week ended July 10 to 514.4 up from 493.1 the previous week. The group?s refinancing index increased 17.7%, while the gauge of purchases fell 9.4%. The rise was due to lower home loan rates last week.
A surprise reading from the New York Fed showed that manufacturing in that region shrank at the slowest pace in a year led by the biggest increase in orders since the recession began. The New York State Manufacturing Index rose to -0.55 in July from June’s -9.41 reading and was the best level since April of 2008. The report has also boosted Stock prices in the early going.Inflation at the consumer level increased slightly in June from May pushed higher by rising gasoline prices. The Consumer Price Index (CPI) rose 0.7% in June from the 0.1% reading in May – estimates were calling for a reading of 0.6%. The so-called Core CPI, which strips out volatile food and energy, rose to 0.2% from 0.1% in May.
The CPI year-over-year fell 1.4%, the biggest decrease since January of 1950, while the Core CPI for the last year ended in June was 1.7% down from May’s reading of 1.8% for the past 12 months.
