American Pacific Mortgage

American Pacific Mortgage

Thursday, August 15, 2019

Buy or Refi now or Wait...?

The interest rate outlook is clearing up, and we see no signs of rate increases in the near future. Recession worries are receding, due to low unemployment and a stable economy. However there are many factors affecting the markets that are beyond our borders, to include the tariff wars. So, the bottom line is barring something dramatic on the international front, rates should remain steady through year end. The recent drop of .25% to the Fed rate did not have much effect on mortgage rates and that and future anticipated drops appear to have already been built into current rates.

Since no one can time the market perfectly, I would not recommend waiting any longer if you need to refinance for home improvements, debt consolidation, or just to reduce your current monthly payment.

We have not seen a statistically significant drop in home values, excepting possibly at the higher price points, well over $1 million. So, waiting to make a move may not work in your favor.

For first time homebuyers who are on the fence, studies show that waiting to make a home purchase costs money every month. Postponing a home purchase to wait for the perfect storm will cost more in the long run, in terms of lost equity. Why make the mortgage payment for your landlord vs. for yourself?

Reach out to us by phone or visit our website at for assistance.

Wednesday, April 10, 2019

5 Reasons to Use Reverse Financing

Reverse loans are becoming more "accepted" although there are still some who think they are only for those in dire straits, or are just generally a bad idea. Not so!!! Here are five reasons to use Reverse financing:

1. Pay off an existing home loan to reduce monthly debt by eliminating your monthly payment. No payment is required on a Reverse loan.

2. Place a Line of Credit on your home, for quick and easy access to cash as needed. No payment is required and you only accrue interest on the actual balance of the line of credit.

3. Buy your final retirement home using Reverse financing, vs. all-cash or regular mortgage financing. Increase your buying power, and no payment is required for the Reverse Loan.

4. Access your home's equity to pay for long-term care or prepare your home for aging in place. No payment is required.

5. Access your home's equity to provide regular monthly payments to yourself for additional income. No payment is required and the income is not taxed.

Thursday, April 4, 2019

Real Estate in California...What 's Next?

It is that time of year, again...Spring buying season. Home listings are growing in numbers, but where are the buyers? Most homes are sitting on the market longer than in the past few years, and most are selling below list price. We expect activity to pick up, since rates have adjusted down nicely. Most economists see home values flattening out somewhat, but we aren't expecting any drops in value in the near term.
Rates are also flattening out, and we've seen a couple of moments of the dreaded "inverted" yield curve which means that short term rates rise above longer-term rates. This translates to a couple of things: 1. A recession is expected sooner than later, and 2. the marketplace sees more risk in the short term vs. the long term.

What does this mean for you? If you are interested in buying, now is the time to jump while rates remain near historical lows.

We believe Reverse loans are going to continue to gain in popularity due to the aging baby-boomer population. These increase the buying power of a buyer over age 62 when coupled with cash toward the purchase price. They are also very useful for those wishing to retire existing debt on their home to reduce monthly expenditures, or to have a line of credit to use when future needs arise, all without a required monthly payment.


The first quarter has sped by with alarming speed! My grandchildren are growing like weeds, and entertaining us endlessly. They are now six, four, two, one and almost one. WOW! Steve is still commuting to Dallas, but we expect that to wind down this year. My daughter is working with me here at THE CARD TEAM, and we are having a lot of fun and keeping very busy!

We are busier than ever. Between kids, grandkids, Yacht Club events, work and exercise there isn't much downtime. We have also taken up golf, and try to get out on weekends when the weather is nice. Steve is going to crew in the Newport-Ensenada race for the first time and I will cheer from the sidelines when I am not on a wine tasting tour of the wineries near there. We have some scuba diving planned for the year both locally, in Catalina, and in Hawaii later in the year. A camping trip to El Capitan (north of Santa Barbara) is on the books for September, with all our kids and grandkids. It will be wild! When we are all together it is sort of like a tsunami, but always filled with laughter and good times.

Last year we took a couple of scuba trips, one to Cozumel and one to Cabo Pulmo outside Cabo San Lucas. The trip to Cabo Pulmo was combined with some fishing in the Sea of Cortez with a large group of friends, which was a blast. Nothing we caught was big enough to write home about, but it made some for very good eating for ceviche and sashimi. We also went up to our favorite family vacation spots in the High Sierra at Rock Creek for five days with all the family. All fun: lots of hiking, fishing, laughing and card games. In between all that we took quick trips to Catalina, Palm Springs and La Quinta. Phew!

We are looking forward to another fabulous year and wish you the same! Remember, we create experiences that matter.

Thursday, February 21, 2019

5 Tips for your best FICO Score Before You Buy

It is always best to prepare well ahead of time for a home purchase, whether first time or fifth time. We like to begin coaching clients three to six months prior to beginning a home search, to be sure our clients are well-prepared. Your Credit score is extremely important for loan-qualifying purposes, and in order to attain the lowest interest rate.

1. DON'T close any revolving credit accounts; pay them down or off but continue to use them periodically.
2. DON'T pay off any collection accounts; activity in the derogatory section of your credit report can lower your scores. If needed they can be paid through escrow.
3. DO keep all your balances at or below 30% of available credit.
4. DO make all credit card payments on time. A late fee incurred is not reported, unless an account goes 30 days late.
5. DON'T cosign on a loan for someone else. If they miss a payment, your credit will be affected negatively.

Monday, January 21, 2019

Boys & Girls Club of America

Our Holiday for Martin Luther King's birthday made me think about what we do for others. In the past I have been actively been involved in my children's schools (geez that was a long time ago!) as far as PTA, PTO, and Bond financing for local school improvements. I was also instrumental in the origination of the Dinosaur Dash in Tustin, a race/walk event to raise funds for the Tustin Public Schools Foundation.

But some of my most memorable work was on the Board of the Tustin Boys & Girls Club. I had the honor to attend a couple of national conventions where there were many young people representing their clubs nationwide. These young adults universally felt the Club saved their lives.

This organization provides things like after-school activities for kids of all ages, as well as meals and transportation to and from school. To this day it makes me tear-up to think of the kids they keep off the streets, and instead active in sports and homework, and heading toward responsible adulthood.

Now that we live in South Orange County, we support the Boys and Girls Club of Capistrano Valley. This is an amazing organization with three locations that serve an average of 480 children every day and 3,000 kids over the course of the year. My husband serves on the board and we support many of their events and fund-raising programs. It is gratifying to say the least, and I can't think of a better way to give back for the fortunate lives we lead.

Wednesday, January 9, 2019

30 Year Fixed Rate Financing - Is it Worth It?

In the aftermath of the great Recession, there was a flight to the "security" of the 30 year fixed rate loan. But, how many people do you know who have had the same mortgage loan for 30 years? parents did. They never moved from their original home, and they remodeled utilizing cash on hand. But, in today's world, we rarely see people who have lived in the same home for 30 years, and even if they have, they have refinanced at one time or another for alternate purposes such as an addition, remodel, debt consolidation etc.

I personally can't think of anyone today who has had the same loan for that long. So, why the tendency to go for a 30 year fixed rate loan? Today there are far more attractive rates for 7- or 10-year ARM loans vs. a 30 year fixed rate loan. An ARM loan is still a 30 year amortizing loan, but the rate is only "fixed" for the initial period. After that, it adjusts on a fixed schedule, usually annually, over an index such as LIBOR or Treasuries.

There are reasons to use a 30 year fixed rate. A rental property might be a good candidate for a 30 year fixed rate loan. But, why pay a higher interest rate for a 30 year loan when you likely won't hold the loan for more than seven to ten years? Prior to the recession of 2008, the average hold time for a home in California was six years. Post-recession it extended to nine years, mostly due to the fact that many homeowners were "under water" and owed more than their home was worth. However, this is certainly not the case today.