May 13, 2011

So Pablo (10 months) has been thinking for the last 7 days that 4 am is wakie wakie time. WHAAAT? Doesn’t he know that is serious dreamtime? So for 45-60 minutes I rock, pat, sing, chant, hum, ANYTHING to get this kid to sleep. This while at the same time doing my self talk to keep my cool (“ Jennifer, he is a sweet , innocent baby. You have to TEACH him how to fall asleep and not wake up). Okay, okay. I have come up with a plan, and we are working on it. Dilute the bottle, a little more each night. Last night he slept 8 hours straight instead of 5. We are onto something!

Our buyers and sellers are no different than my precious Pablito! Whether a seasoned homeowner or first time, the market has changed. It is our responsibility as professionals to TEACH them and guide them through the process. Do you have a checklist for the beginning of a transaction letting them know the steps 1, 2, 3 ? Well, I just devised one for the financing side, and we mail to EVERY prospect within 24 hours of them calling. After 16 years of doing this, it finally hit me! Clients need a checklist! In fact, I think they crave one. Set yourself apart, and start developing one today!

Some Industry News………
Freddie Mac reported its first true net profit in almost two years, earning $676 million in the first quarter and not asking the taxpayer for more money. But Fannie reported at $6.5 billion loss for the quarter, and asked Treasury for $8.5 billion in taxpayer money. How could that be you ask? It ‘could be’ concluded that the difference rests in the amount of Countrywide business that Fannie bought in the past - CW was Fannie's best customer for several years, selling Fannie a variety of A-paper, alt-A, pay option ARMs, and other products. I bet that if you take Countrywide out of the equation, Fannie would show similar results to Freddie. But last year Fannie agreed to one lump sum from BofA to settle the bulk of buyback claims - good for BofA, bad for Fannie."

Some tips for prospective homeowners that have faced hard times:
You can finance another home in…….
• 2 years after a Short Sale and must put 20% down)
• 5 years after a Foreclosure
• 4 years after a Bankruptcy (2 years if FHA)
Have a wonderful weekend!

RATES as of May 6, 2011 (UNCHANGED FOR THE WEEK)
The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.375% APR 3.719% 15 year ( fixed ) 4.500% APR 4.753%
15 year (fixed) 3.875% APR 4.139% 30 year ( fixed ) 5.250% APR 5.377%
30 year (fixed) 4.625% APR 4.780%
7/1 ARM 3.750% APR 3.310% 5/1 ARM 3.250% APR 3.362%
7/1 ARM 3.750% APR 3.599%
10/1 ARM 4.500% APR 4.061%

FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.500% APR 3.832%


We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!