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    Monday, March 31, 2008

    Timely Tax Information

    Welcome back to a beautiful Monday morning! Check out this week’s newsletter, which covers timely tax information to help you pass along to your clients. Taxes are a hot topic so pick a quick tip and spread the word. Also, the PCE index, or what I like to call the inflation report, is within the target range of 2% which is good news for mortgage rates. To learn more just read the newsletter below.

    Make it a great week!

    Although the newsletter is not attached to see the tips simply ask to be a part of the distribution list.

    Friday, March 28, 2008

    This week is ending on a high note ...

    Happy Friday,

    This week is ending on a high note as some reports give way to good mortgage bond news this afternoon. This week Core Personal Consumption Expenditure Index (PCE), which is the number one report to gauge inflation, shows us that inflation is right in line with Fed target rates between 1-2%.

    TAKE A LOOK AT THE RATES! Look at the conforming 3, 5, 7 year ARMs which have really low rates! In the low 5%!! These programs do have pre-pays.

    Wednesday, March 26, 2008

    100% financing

    Are you tired of your clients hearing NO, NO, NO, I can’t find anyone to qualify me on 100% financing, interest rates are too high, I don’t have enough money for a down payment or closing costs, or I am in a declining or soft real estate market and cannot meet my lender’s new qualifying guidelines?

    If you are tired of hearing these objections, then I can help you sell more homes because I can turn these frustrated clients into buyers.

    Call me today to discuss the benefits of FHA financing for your clients. I have a privately funded down payment assistance program that has been approved by the FHA to help get families into homes.

    This program allows:
    Down payment and closing cost assistance to the buyer
    Lower interest rates
    No declining or soft market policy
    Easier to meet with low or no credit scores needed
    No asset reserves required
    This program is restricted to primary residences only
    Full documentation, but also allows non-occupant co-borrowers to help qualify.
    The maximum loan amount 500K.

    The responsibility of executing this program correctly will be based on the ability of the buyer, seller, and lender all working together to accomplish our goal. I will be more than happy to school all who are involved in the transaction to help accomplish this goal.

    Tuesday, March 25, 2008

    The Mortgage Business of 2008 Quick Tips

    The mortgage business of 2008 is turning into a wild ride! It's like a never ending adventure that continues to throw a curve balls in my direction. Some of the things I've learned recently.

    1. Canadian financing... requires 30% down. No income needs to be verified, no social security number, or credit report. I've got several programs to help with Canadian or foreign national financing.

    2. FHA property flipping states that a seller cannot hold title to a property for less than 90 days which includes the purchase agreement dates. Make sure its more than 90 days from when the purchase agreement is signed.

    3. 100% financing is still available... ask me how.

    4. Most people don't understand the benefits of reverse mortgages. If you are home equity rich and cash flow poor reverse mortgages can make sense.

    5. Many banks are moving away from stated income, stated asset loan programs and most have discontinued no document and no ratio programs.

    Call Sean La Rue at (760)837-1488 or simply apply at Loan Application

    Monday, March 24, 2008

    Bear Stearns bailout

    I hope you had a relaxing Easter weekend. This weeks update covers the news about last weeks Bear Stearns bailout. Ever thought about the Pros and Cons of buying a car versus leasing one? This week’s update covers it all! Also, just in case you didn’t get a chance to read why new mortgage rates go up after a Fed cut see the attached article.

    I’d like to address one topic today. Have you ever noticed in the Desert Sun that many of the articles are written by the Associated Press? Ask your clients who wrote the articles they are reading and quoting and ask them if it’s a nationally related article or a local article. You may be surprised!



    Friday, March 21, 2008

    Bear Stearns Trials

    I hope you’re having a wonderful Good Friday!

    The Fed, this week, again lowered the Fed funds rate by another 0.75% to 2.25% making the prime rate now 5.25%! This is good news for consumers and holders of Home Equity Lines of Credit that are tied to the Prime interest rate.

    Last Friday the Fed reduced the discount rate by 0.25%. This came as a surprise as Friday (after-hours) rate decreases by the Fed haven’t happened in the last 30 years. The reason they did this was to help Bear Stearns and their investors.

    Attached is this week’s rate update! Please call with any questions and remember I’m never too busy for any of your referrals! Make it a great and productive weekend!

    Monday, March 17, 2008

    St. Patrick’s Day

    I’m sure you’re off to a very green St. Patrick’s Day! Last week the financial markets were pretty green for you too with mortgage rates dropping by as much as 0.25% for most programs. But be careful! With inflation numbers down reported last week the Fed could cut Fed rates by another 0.75% in tomorrows meeting. These rates are tied to the Prime rate, consumer loans, and credit cards, but the Fed rates are what the Fed lends to banks overnight! With a Fed cut, inflation could rise and when inflation rises mortgage rates are likely to go up. I recently sent out an article explaining this. If you’d like to look at it again please let me know. Make it a great week!

    Oh by the way, I’m never too busy for any of your purchase or refinance mortgage referrals! Have a safe and fun St. Patrick’s Day!

    MMG Weekly For the week of Mar 17, 2008 --- Vol. 6, Issue 12
    "JUST WHEN I THOUGHT I WAS OUT...THEY PULL ME BACK IN." Al Pacino in the 1990 film, The Godfather III And if Bonds and home loan rates thought they were out of the days of volatility...they got pulled right back in, as last week brought daily price swings of almost historic proportions. For the week overall, fixed home loan rates improved by about .25%.

    What led to the dramatic action this week? The bipolar emotional state of the markets began deeply depressed on Monday, but then were filled with joy Tuesday, when the Fed made an interesting move by announcing the creation of the new Term Securities Lending Facility (TSLF). The TSLF will provide borrowing banks with $200 Billion to draw on to help inject liquidity into the credit markets, and further, will accept some mortgage-backed securities as collateral, which effectively may help to "upgrade" the value and perception of battered Mortgage Bonds.

    But in the meantime...struggles are still being played out related to the downgrade and losses experienced by companies holding massive amounts of mortgage-backed securities. Headlines hit on Thursday about The Carlyle Group, which manages a portfolio of mortgage-backed securities, not being able to meet a margin call and being forced to sell off large amounts of mortgage paper into the markets at great financial losses. Then on Friday, the news broke that financial brokerage and investment banking giant, Bear Stearns had suffered enormous losses, and their lack of liquidity endangered them from going out of business...or "sleeping with the fishes". The new aforementioned TSLF is designed to help this type of liquidity problem, but it will not go into effect for a few weeks, and Bear Stearns would not last that long. Coming to the rescue with loans were both the NY Fed and JP Morgan Chase. These sure are exciting times.

    One bright spot for the financial markets was a low consumer inflation reading. The Overall and Core Consumer Price Index (CPI) figures were reported unchanged, far cooler than the expected increases of 0.3% and 0.2% respectively. These tame inflation numbers give the Fed a green light to cut the Fed Funds Rate by another .75% at Tuesday's meeting...but read on to understand exactly how this cut may impact YOU.

    IF THE IDEA OF KEEPING BUSINESS IN THE "FAMILY" CONJURES UP IMAGES OF MICHAEL CORLEONE AND OFFERS THAT CAN'T BE REFUSED - YOU'LL WANT TO READ THIS WEEK'S MORTGAGE MARKET VIEW TO LEARN SOME TIPS ON RUNNING A SUCCESSFUL FAMILY BUSINESS, WHERE YOU LIKELY WON'T HAVE TO WORRY ABOUT EITHER GUNS OR CANNOLI'S.


    Forecast for the Week



    So if you love all the excitement, drama, intrigue and crazy volatility of late...you'll love the week ahead, as it is loaded full with market movers. We'll get the latest readings on the health of the manufacturing and housing sectors, but the main event will take place on Tuesday when the Federal Reserve announces its latest interest rate decision and Policy Statement.

    The Fed is expected to cut the Fed Funds Rate by another .75%. However, as we've seen following every Fed rate cut in the recent cycle, chances are very good that Bond pricing will worsen following the cut...which results in higher home loan rates. This happens because Fed rate cuts help to stimulate the economy, by making it less expensive to finance personal and business purchases...and this in turn fuels inflation, the arch-enemy of fixed return assets like Bonds, which home loan rates are based on.

    So a word to the wise - if you or someone you know has been ready to move forward on a purchase or refinance, there's no time like the present. Be sure to get in touch with me, so I can explain your options and help plan a great strategy for your home loan.

    Chart: Fannie Mae 5.5% Mortgage Bond (Friday Mar 14, 2008)


    The Mortgage Market View...



    BUT DON'T EVER TAKE SIDES WITH ANYONE AGAINST THE FAMILY AGAIN...EVER

    These lines spoken by Michael Corleone to his brother Fredo could very well apply to small family businesses, which are critical to the nation's economy. In fact, according to the National Federation of Independent Businesses, more than 1.2 Million businesses across the country are owned and operated by spouses. While these thriving ventures in capitalism are great for the economy, they can cause a lot of stress on your family relationships. That's why experts recommend you follow a few simple suggestions to keep the business--and your family life--running smooth!

    Only Fools Rush In. Starting a family business is a huge commitment. Although it sounds romantic, it's a lot of work to...well...make it work. Before you jump in, consider what type of business is truly right for you; how the business will impact your financial plans; and how you'll still make sure you have time in your schedule to enjoy non-business related family time. Because, as The Don says, "a man who doesn't spend time with his family can never be a real man".

    Put It In Writing. The first step to making your dream a reality is putting together a business plan. The Small Business Administration has a great website that can help you write your business plan. You'll also need to apply for a business license, tax identification number, and even business loans. Again, you can find the most requested business documents on The Small Business Administration website.

    Clarify Roles and Responsibilities. To help avoid frustrations and arguments in the future, make sure everyone agrees on who will be responsible for what. Give yourselves titles and draft job responsibilities...then make sure everyone is happy with their role, and that all of the important everyday duties are covered. Make sure you determine who will pay the bills, who will negotiate contracts, who's in charge of the marketing plan, who does the hiring, and so on. You don't want to risk overlooking something or arguing about it later.

    Protect Yourself. More important than having Luca Brasi as your bodyguard is making sure you plan your finances and stock away plenty of money to hold you over, especially during the start up phase. Most experts recommend having three to six months worth of living expenses in savings, depending on whether one or two people in the family will be relying on the business as their main income. You'll also want to meet with a financial planner to make sure your retirement and other financial plans stay on track - and if you need a referral to a great financial pro, just let me know.

    Set Boundaries... and Stick to Them! It's easy to let the business take over your family life. Little by little the business successes and setbacks slip into family conversations... it's only natural. But don't let them take over completely. To alleviate this problem, make sure you set up regular "business meetings" where you can talk about key issues and exchange ideas about the business. In addition, establish some off-limit times where you'll devote yourselves to each other and your family life. After all, even family businesses need some time "away from the office."

    Starting a business with your spouse or family is an exciting time. The key is to harness that excitement while staying cool-headed enough to make smart personal and financial decisions. If you or someone you know needs help with these important details, please don't hesitate to call. I'll be happy to discuss your needs and put you in touch with other professionals that can help.

    Friday, March 14, 2008

    Franklin Loan Center’s platform

    Happy Friday!

    The weeks been great so continue the momentum into the weekend a hold an open house! Print out the attached is the weekly rate update and keep a few copies at your open house. Rates are looking good and Franklin Loan Center’s platform has never been better!! I can handle all of your financing needs! Have a great weekend and remember…

    I’m NEVER too busy for any of your referrals.

    Friday, March 7, 2008

    FRANKLIN LOAN CENTER IS NOW FHA APPROVED!!

    FRANKLIN LOAN CENTER IS NOW FHA APPROVED!! This means great things to come when you have clients who are in need of NO and LOW down payment assistance.

    Wow, I hope you’ve had an exciting week like I have! Yesterday we got the announcement that the conforming loan limit / FHA limit for Riverside County has increase to $500,000 for single family homes. We are still waiting to be able to lock loans at the new limits. You’ll notice on my rate sheet (attached) that I am still using the conforming loan limit of $417,000 until I am able to lock. Also, there are specifics we are verifying regarding these new limits! As I get more information I’ll pass it along.

    This week I’ve attached two articles you should read.

    DO YOU HAVE CLIENTS WAITING FOR ANOTHER FED RATE CUT? Read the first article, “Fed Cuts Mortgage Rates Go Up?” to knock them off the fence as mortgage rates will most likely go up after a cut! PRINT COPIES TO PASS OUT!

    DO YOU HAVE CLIENTS WAITING FOR PRICING TO COME DOWN? Read the second article, “Ignore All the Headlines” to encourage them to take advantage of low interest rates. PRINT COPIES TO PASS OUT!

    Attached is my weekly rate sheet! I’m NEVER too busy for ANY of your referrals! Make it a great week.

    FHA Mortgage Limits List - FHA Forward

    Message: MORTGAGE LIMITS SUCCESSFULLY COMPLETED


    Mortgage maximums as of Wednesday March 05, 2008
    (1 records were selected, 1 records displayed.)
    MSA Name
    MSA Code
    Division
    County Name
    County
    Code
    State
    One-Family
    Two-Family
    Three-Family
    Four-Family
    Last Revised
    RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (MSA)
    40140

    RIVERSIDE
    065
    CA
    $500,000
    $640,100
    $773,700
    $961,550
    03/05/2008


    FHA Mortgage Limits List - Fannie/Freddie

    Message: MORTGAGE LIMITS SUCCESSFULLY COMPLETED


    Mortgage maximums as of Wednesday March 05, 2008
    (1 records were selected, 1 records displayed.)
    MSA Name
    MSA Code
    Division
    County Name
    County
    Code
    State
    One-Family
    Two-Family
    Three-Family
    Four-Family
    Last Revised
    RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (MSA)
    40140

    RIVERSIDE
    065
    CA
    $500,000
    $640,100
    $773,700
    $961,550
    03/05/2008



    Monday, March 3, 2008

    Fed Chair Ben Bernanke

    Good Morning! Hope you’re off to a great week!

    Last week in mortgage news we saw rates improve by about 0.25% to 0.375%. This was a result from Fed Chair Ben Bernanke and some bad news for the economy from several reports. Up and coming… the Economic Stimulus Package… do you know what to do with your tax rebates? See the tips below!

    Oh by the way, if you have a family member or friend from work interested in buying or refinancing a home, I am never too busy for your referrals. Please call or email me their name and I’ll be happy to follow up with them!

    Make it a great week!

    -Sean