tag:blogger.com,1999:blog-21734623848012282992024-03-13T21:50:14.289-07:00The Card Team Mortgage News Mortgage financing news and updates, combined with some random musings about family, grandchildren, travel, scuba diving, art, music, and whatever strikes my fancy.Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.comBlogger131125tag:blogger.com,1999:blog-2173462384801228299.post-44730304636642815262024-03-13T16:33:00.000-07:002024-03-13T16:33:53.034-07:00AND, WE ARE OFF TO THE RACES!<p>Someone somewhere turned the light on, finally! Buyers are
coming off the sidelines and sales activity is picking up, as we have been predicting
since last year. </p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"><b>RATES AND THE MARKET<o:p></o:p></b></p>
<p class="MsoNormal">Although rates are still holding steady fairly close to 7%, we
are seeing much more application activity in the last two months.<span style="mso-spacerun: yes;"> </span>We still expect to see the Fed reduce the Fed
funds rate by June, although we continue to see mixed economic indicators. Inventory
remains on the low side, keeping home prices up in most markets. <o:p></o:p></p>
<p class="MsoNormal"><b>BE A “SCOUT” AND BE PREPARED!<o:p></o:p></b></p>
<p class="MsoNormal">With the recent increase in activity, we are getting more and
more phone calls that go like this:<span style="mso-spacerun: yes;"> </span>“Hi,
how are you?<span style="mso-spacerun: yes;"> </span>I need a pre-approval
letter today so I can see a property that was just listed”<span style="mso-spacerun: yes;"> </span>or even worse, “I need a pre-approval letter now,
so I can make an offer.”<o:p></o:p></p>
<p class="MsoNormal"><u>Preapproval letters do not grow on trees</u>--- and are
not automatically issued (at least not by ethical lenders) upon request.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>We always
perform our due diligence and review bank statements, W2s, paystubs, and tax
returns as applicable, depending on income streams. We pull a “soft” credit report
and run automated underwriting on most loans for “automated loan approval.” <span style="mso-spacerun: yes;"> </span>This can take us a day or two, depending on
workflow and the speed with which clients provide us the documentation needed.<o:p></o:p></p>
<p class="MsoNormal"><u>Please contact us early on so you are prepared to pounce
when you find the right property.</u> <i>That
way, you won't miss out because you did not get your preapproval the same day
you asked.</i><span style="mso-spacerun: yes;"> </span><o:p></o:p></p>
<p class="MsoNormal">Further, we oftentimes work for a month or twelve with
clients on credit repair, increasing savings, accessing gift funds or down
payment assistance, car loan payoffs, etc.<o:p></o:p></p>
<p class="MsoNormal"><b>REMINDER FOR SELF-EMPLOYEDS<span style="mso-tab-count: 1;"> </span><o:p></o:p></b></p>
<p class="MsoNormal">Our self-employed borrowers face special challenges.<span style="mso-spacerun: yes;"> </span>Their income streams are typically more complicated,
and oftentimes they have more latitude on the amount of expenses they deduct
from income.<span style="mso-spacerun: yes;"> </span>This can make or break a
purchase or refinance loan.<o:p></o:p></p>
<p class="MsoNormal">We always want to review your business and individual tax returns
PRIOR TO FILING.<span style="mso-spacerun: yes;"> </span>This way we can be
certain you will qualify for the loan you desire.<span style="mso-spacerun: yes;"> </span>We like to collaborate with your tax preparer
and/or CPA to coordinate for a successful loan transaction. <o:p></o:p></p>
<p class="MsoNormal">Recently a client who was fully pre-approved went ahead and filed
his 2023 returns--showing less income with more expenses, and we had to cut his
loan amount after he was ready to make an offer.<span style="mso-spacerun: yes;"> </span><b>Don’t be that client!</b><o:p></o:p></p>
<p class="MsoNormal">I recently visited my sister and her chickens. We love the fresh eggs they provide!</p><p class="MsoNormal"><br /></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhmo50zzJECl3NX8bhAOHcC1eK-kwaA693j0HaYwzsEoKLT-sjYOaA-1SMz-zHOEiM10EQsmcxJwmtrqat899loJpus12wUewroKfygdGqQaITwkWAIXFhGEmeX3948idRLvDXbGgOJB75Irzb9Ve2P2VjRP0rLKKGMCE8bm1LAwi_y1mLVLH8ODdCmN80/s555/checkens.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="380" data-original-width="555" height="219" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhmo50zzJECl3NX8bhAOHcC1eK-kwaA693j0HaYwzsEoKLT-sjYOaA-1SMz-zHOEiM10EQsmcxJwmtrqat899loJpus12wUewroKfygdGqQaITwkWAIXFhGEmeX3948idRLvDXbGgOJB75Irzb9Ve2P2VjRP0rLKKGMCE8bm1LAwi_y1mLVLH8ODdCmN80/s320/checkens.jpg" width="320" /></a></div><br /> Welcome to spring and daylight savings! YAY!!! <p></p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal">As always, call us with questions!<o:p></o:p></p><p class="MsoNormal">Karen, Katie and Stephanie</p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-13879097297935035562024-02-13T11:43:00.000-08:002024-02-13T11:43:33.628-08:00SUPERBOWL and SWIFT Insurance Changes!<p><span style="font-family: Calibri, sans-serif;">I had to get
a comment in about the increase of younger women, “Swifties” watching the
Superbowl.</span><span style="font-family: Calibri, sans-serif;"> </span><span style="font-family: Calibri, sans-serif;">Wow!</span><span style="font-family: Calibri, sans-serif;"> </span><span style="font-family: Calibri, sans-serif;">What a great game, a nail-biter up to the end!</span><span style="font-family: Calibri, sans-serif;"> </span><span style="font-family: Calibri, sans-serif;">And the half-time show was entertaining!</span><span style="font-family: Calibri, sans-serif;"> </span><i style="font-family: Calibri, sans-serif;">Of course I am an Usher fan</i><span style="font-family: Calibri, sans-serif;">. We watched the game at Dana Point Yacht Club, here is the sunset view.</span></p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjbQtFYs8PBrjvc5ocbJq13_Pcozdy3iIgkfjR-v_MNi_A3LyZ3RqamJxcEYsl_te8nT8Lhe9pggvgSEOMVxhGnO2V1bZu4TLcJLj9q1mLcwgavyvhGWEATu2C9cz5gy3GWNPel0Iyx8gKBhuW1Q4JLQtsJYlXKRWhc8-o3v5hyphenhyphentlGot0Ry7IoYw3oEUtE/s2016/sunset1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="908" data-original-width="2016" height="178" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjbQtFYs8PBrjvc5ocbJq13_Pcozdy3iIgkfjR-v_MNi_A3LyZ3RqamJxcEYsl_te8nT8Lhe9pggvgSEOMVxhGnO2V1bZu4TLcJLj9q1mLcwgavyvhGWEATu2C9cz5gy3GWNPel0Iyx8gKBhuW1Q4JLQtsJYlXKRWhc8-o3v5hyphenhyphentlGot0Ry7IoYw3oEUtE/w396-h178/sunset1.jpg" width="396" /></a></div><b><span style="font-family: "Calibri",sans-serif;">Rate and
Market Updates</span></b><p></p>
<p class="MsoNormal"><span style="font-family: "Calibri",sans-serif;">Rates have
crept back up near their highs.<span style="mso-spacerun: yes;"> </span>The next
move down will depend primarily on the CPI figures coming out this week.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>If inflation
is decreasing, we should see a reduction in the Fed rate sooner than later.<span style="mso-spacerun: yes;"> </span>If not, we may be waiting for June before we
see any appreciable change.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: "Calibri",sans-serif;">Regardless, <u>activity
is definitely picking up,</u> with many coming off the sidelines when rates
started their drop at the end of last year. To quote a local Real Estate professional,
<b>“Stop holding your breath waiting for prices to fall.”</b><span style="mso-spacerun: yes;"> </span>They won’t, barring a National or International
Disaster.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: "Calibri",sans-serif;">Baby boomers
are not selling their homes and, for the most part, are not moving.<span style="mso-spacerun: yes;"> </span>So, <i>get into the market if you aren’t
already, any way you can, even if you have to buy an investment property and/or
combine forces with a friend or relative.</i><span style="mso-spacerun: yes;">
</span>Don’t wait for your dream home or you may be priced entirely out of the market
here in California.<o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-family: "Calibri",sans-serif;">Insurance
Woes<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-family: "Calibri",sans-serif;">In case you
have not heard, <b><u>we have an insurance crisis.</u></b><span style="mso-spacerun: yes;"> </span>Insurance costs are rising dramatically for homes,
cars and more.<span style="mso-spacerun: yes;"> </span>A number of carriers have
stopped writing insurance on homes in California, or pulled out of our market altogether.<span style="mso-spacerun: yes;"> </span>This means many homeowners have had their
policies cancelled by their carriers, and find they now have to resort to the “Fair
Plan” provided by the State, with an additional “wrap” policy.<span style="mso-spacerun: yes;"> </span>These are all expensive!<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: "Calibri",sans-serif;">Why is this
happening, may you ask?<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><b>Well, fires, floods, and earthquakes.</b><span style="mso-spacerun: yes;"> </span><i>Climate change is bringing more frequent
and more serious weather events.</i><span style="mso-spacerun: yes;"> </span>The
number of weather-related disasters have risen dramatically in the US over the
past 20+ years.<span style="mso-spacerun: yes;"> </span><u>Insurance companies are
losing money, and they are for-profit enterprises.<span style="mso-spacerun: yes;"> </span><o:p></o:p></u></span></p>
<p class="MsoNormal"><span style="font-family: "Calibri",sans-serif;">So far, the companies
that have exited or stopped writing new policies include The Hartford; State
Farm, Allstate, Farmers, Kemper, and USAA. <o:p></o:p></span></p>
<p class="MsoNormal"><i><span style="font-family: "Calibri",sans-serif;">Auto rates
are climbing as well</span></i><span style="font-family: "Calibri",sans-serif;">,
primarily due to high costs to repair autos.<span style="mso-spacerun: yes;">
</span><o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-family: "Calibri",sans-serif;">What does
this all mean?</span></b><span style="font-family: "Calibri",sans-serif;"><span style="mso-spacerun: yes;"> </span>Well, it has a rather dramatic effect on home
affordability if your insurance premium is double or more than initially
expected. <b>Lenders require insurance and it is not wise for anyone to go “bare”
without insurance, even if you don’t have a loan on your property.<o:p></o:p></b></span></p>
<p class="MsoNormal"><u><span style="font-family: "Calibri",sans-serif;">We have to
remind our clients to get busy contacting agents to get insurance in order
ASAP, <span style="mso-spacerun: yes;"> </span>or it can and will slow down
closings. <o:p></o:p></span></u></p>
<p class="MsoNormal"><span style="font-family: "Calibri",sans-serif;">However, if
you think it is bad here, take a look at Florida.<span style="mso-spacerun: yes;"> </span>There, many homeowners are being forced to
sell as they can’t afford the enormous increase of their insurance policiy.<span style="mso-spacerun: yes;"> </span>Others are paying off their mortgage and
going “bare” so they don’t have to pay giant premiums where policies have doubled
or tripled due to hurricanes.<o:p></o:p></span></p>
<p class="MsoNormal"><i><u><span style="font-family: "Calibri",sans-serif;">If you
need help with insurance, reach out!<span style="mso-spacerun: yes;"> </span>We
can help!<o:p></o:p></span></u></i></p>
<p class="MsoNormal"><span style="font-family: "Calibri",sans-serif;">We are looking
forward to Spring!<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: "Calibri",sans-serif;">Karen, Katie and
Stephanie<o:p></o:p></span></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-77045076668238024412024-01-08T14:59:00.000-08:002024-01-08T14:59:04.477-08:00MYTH-BUSTING THE REAL ESTATE NEWS<p><b>Welcome To 2024!</b>
There is a lot of information floating around out there that is either
in conflict from one day to the next, wishful thinking, or just plain wrong
information. We are here to inform you
of what is happening in the real estate market today, and provide real up to
date information.</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"><b>Recession?</b><span style="mso-spacerun: yes;"> </span>Nope!<span style="mso-spacerun: yes;"> </span>Employment is too strong, and unemployment is
still relatively low.<span style="mso-spacerun: yes;"> </span>This is going to
provide what economists call a “soft landing” for the country, unless we have
an unforeseen catastrophe. If we do enter recession, it will be very mild.<o:p></o:p></p>
<p class="MsoNormal"><b>Wave of Foreclosures?<span style="mso-spacerun: yes;">
</span>No way!<span style="mso-spacerun: yes;"> </span></b>Homeowners have far
too much equity to go into foreclosure.<span style="mso-spacerun: yes;">
</span>Should a homeowner lose their job, and be unable to pay their mortgage (although
there are still lots of jobs out there) they can sell and retain their equity before
they might go into a foreclosure situation.<o:p></o:p></p>
<p class="MsoNormal"><b>It's Too Hard to Qualify?<span style="mso-spacerun: yes;">
</span></b><span style="mso-spacerun: yes;"> </span>Although rates are higher
than most of 2023, they have begun to come down.<span style="mso-spacerun: yes;"> </span>At the same time there are more programs to
make it easier for self-employed borrowers to qualify without providing tax
returns.<span style="mso-spacerun: yes;"> </span>Minimum down payments have been
reduced for some loan programs, and there are many DPA (Down Payment Assistance)
programs out there<b>.<span style="mso-spacerun: yes;"> </span></b>It has been a
full-document environment for so long, there is nothing more difficult about
today’s lending environment.<span style="mso-spacerun: yes;"> </span>Both FHA
and conventional programs are pretty liberal when it comes to debt-to-income
ratios.<span style="mso-spacerun: yes;"> </span>And, gift funds are always
allowed to help with down payment.<o:p></o:p></p>
<p class="MsoNormal"><b>Real Estate Crash?<span style="mso-spacerun: yes;">
</span></b>No Way! Since the major “Meltdown” of 2008 – 2010 many things in the
lending industry have changed.<span style="mso-spacerun: yes;"> </span>Foremost
of these is that virtually all homeowners who bought after the Meltdown
qualified for real on paper for their loan.<span style="mso-spacerun: yes;">
</span>And, today they have an absolute TON of equity in their home.<span style="mso-spacerun: yes;"> </span>The last and biggest crash in 2008 was
precipitated by an enormous number of “liar loans” where there was no income
documentation required.<span style="mso-spacerun: yes;"> </span>Those loans were
packaged and sold to pension funds all over the world as “AAA” paper
mortgages.<span style="mso-spacerun: yes;"> </span>When they began to fail, the
domino effect took over.<span style="mso-spacerun: yes;"> </span>It was
devasting for many people both in and out of the RE industry.<span style="mso-spacerun: yes;"> </span>It absolutely can’t happen again with the
safeguards now in place. <b><o:p></o:p></b></p>
<p class="MsoNormal"><b>Home Prices will Drop? </b>Prices have to come down,
right?<span style="mso-spacerun: yes;"> </span><u>Not in most areas of
California</u>.<span style="mso-spacerun: yes;"> </span>We are uniquely
insulated from major price fluctuations due to location, location, location...especially
the closer to the Coast you are.<span style="mso-spacerun: yes;"> </span>Most in
the industry believe that as soon as rates begin to normalize into the low 6’s
and 5’s, all the prospective buyers sitting on the sidelines will come out in
droves, creating a <i>frenzy of buying and bidding wars.<o:p></o:p></i></p>
<p class="MsoNormal"><b>You Should Wait for rates to come down!<span style="mso-spacerun: yes;"> </span></b>This is one of our favorites. The <b><u>Cost
of Waiting</u></b> is enormous as you miss out on property appreciation and
equity buildup through amortization (principal paydown).<span style="mso-spacerun: yes;"> </span>Homeowners build wealth through real estate
ownership. If you wait for five years on an $850K purchase you lose $275K. <b><u>YES.</u></b><span style="mso-spacerun: yes;"> $275,000. </span>The interest rate is not as important as the
price of the home.<span style="mso-spacerun: yes;"> </span>Regarding prices, see
above. <o:p></o:p></p>
<p class="MsoNormal">We hope all this helps you to see through the barrage of
non-information coming your way.<span style="mso-spacerun: yes;"> </span>We look
forward to a productive 2024 for all!<o:p></o:p></p>
<p class="MsoNormal">Happy New Year from The Card Team!<span style="mso-spacerun: yes;"> </span></p><p class="MsoNormal"><span style="mso-spacerun: yes;"></span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHp7UTHkIDTxvbRJeT6Ys9ceErhyblmxIHb2gW6kHp1vq8BWxIMb_H-h-XWglAxyXGmslZBB_JYSuhFqoLtactR36lP95DvVqDjYYcrZgMeWmjPVPeRY4zOGshcRHuWEOEW1NwlUX9t4isz_5uFbIxRw7kDgkXb3AhS9KQDgl8HX9vscsiYK_TC-NrU2I/s424/team%20photo%202%20dec%2023.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="380" data-original-width="424" height="246" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHp7UTHkIDTxvbRJeT6Ys9ceErhyblmxIHb2gW6kHp1vq8BWxIMb_H-h-XWglAxyXGmslZBB_JYSuhFqoLtactR36lP95DvVqDjYYcrZgMeWmjPVPeRY4zOGshcRHuWEOEW1NwlUX9t4isz_5uFbIxRw7kDgkXb3AhS9KQDgl8HX9vscsiYK_TC-NrU2I/w274-h246/team%20photo%202%20dec%2023.jpg" width="274" /></a></div><br /><p></p><p class="MsoNormal">Karen, Katie, Stephanie<b><o:p></o:p></b></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-67783941406100821382023-12-13T12:45:00.000-08:002023-12-13T13:51:16.959-08:00 YEAR END REFLECTIONS - GOOD RIDDANCE 2023!<p>Well, what a year we’ve had!
As 2023 winds up, we are glad to see her in the rear view mirror! 2024 should bring lower rates and more
inventory for home buyers to choose from! </p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"><b>MARKET AND RATES<o:p></o:p></b></p>
<p class="MsoNormal">While the volume of home sales hit a record low this year,
prices have continued to rise in most of Southern California.<span style="mso-spacerun: yes;"> </span>If you are planning a home purchase, we
strongly recommend that you move sooner than later.<span style="mso-spacerun: yes;"> </span>We will experience a <b><i>buying frenzy</i> </b>as
soon as rates get a bit lower (<i>they have already softened in the last month)</i>
and buyers will come off the sidelines in droves.<span style="mso-spacerun: yes;"> </span>With lower rates, more homeowners will list
their homes.<span style="mso-spacerun: yes;"> </span>One might think more homes
on the market would mean prices will drop.<span style="mso-spacerun: yes;">
</span>But, there is so much pent up demand there is no indication that home
prices will come down.<span style="mso-spacerun: yes;"> </span><b><u>Don’t delay!</u></b><o:p></o:p></p>
<p class="MsoNormal"><b>A REAL STORY<span style="mso-tab-count: 1;"> </span><o:p></o:p></b></p>
<p class="MsoNormal">In the last week, two different clients called us, ready to
make an offer on a property.<span style="mso-spacerun: yes;"> </span>They had
gone to an open house, and loved the home.<span style="mso-spacerun: yes;">
</span>However, in both cases, they were not yet pre-approved.<span style="mso-spacerun: yes;"> </span>We had not had time to collect data and
strategize with them. <span style="mso-spacerun: yes;"> </span>By the time they
provided us the documentation required (income and asset information primarily)
so we could pull a credit report and run automated underwriting, the home was
already in escrow and pending close.<span style="mso-spacerun: yes;"> </span><i><u>Get
Pre-Approved ahead of time! </u></i><span style="mso-spacerun: yes;"> </span><b>Don’t
delay and miss out on your dream home!<span style="mso-spacerun: yes;">
</span>We work with some buyers over a year to prep ahead of time.<o:p></o:p></b></p>
<p class="MsoNormal"><b>GOOD NEWS FOR 2-4 UNITS<o:p></o:p></b></p>
<p class="MsoNormal">Until last month, buyers or owners of 2-4 units needed to
have a minimum of 15% down or more.<span style="mso-spacerun: yes;"> </span>The
Agencies (FNMA and FREDDIE) have <u>reduced the minimum down payment required for
2-4 unit properties to 5%, so long as one of the units is owner-occupied</u>.<span style="mso-spacerun: yes;"> </span>This is fabulous news.<span style="mso-spacerun: yes;"> </span>Remember, you will receive credit for 75% of
the imputed rental income for the other units, so this actually helps qualify
for a purchase!!<o:p></o:p></p>
<p class="MsoNormal"><b>NEW INCREASED CONFORMING LOAN LIMITS<o:p></o:p></b></p>
<p class="MsoNormal">Conforming loans meet FNMA and FHLMC guidelines.<span style="mso-spacerun: yes;"> </span>These guidelines are more lenient vs. Jumbo
loan programs, so the rise in the loan limits is good news.<span style="mso-spacerun: yes;"> </span>Many counties throughout California have
different loan limits-- so we always need to check, depending on property
address.<span style="mso-spacerun: yes;"> </span><o:p></o:p></p>
<p class="MsoNormal">$1,149,825 – LA and Orange County; San Diego is slightly
lower.<o:p></o:p></p>
<p class="MsoNormal">$766,550 – Riverside and San Bernardino<o:p></o:p></p>
<p class="MsoNormal"><b>TAX RETURN REMINDER<o:p></o:p></b></p>
<p class="MsoNormal">Please don’t file your federal returns for 2023 until we can
review them, if you plan to buy or refi next year.<span style="mso-spacerun: yes;"> </span><u>This can make or break a successful
transaction.</u><o:p></o:p></p>
<p class="MsoNormal"><b><i>MERRY CHRISTMAS and HAPPY HANNUKAH TO ALL.<span style="mso-spacerun: yes;"> </span>REMEMBER TO BE SAFE, BE KIND,<span> AND CHERISH YOUR LOVED ONES. WE LOST A DEAR FRIEND THIS MONTH.</span><o:p></o:p></i></b></p>
<p class="MsoNormal">As always call us with any questions or concerns you may
have.<o:p></o:p></p>
<p class="MsoNormal"></p><div style="text-align: left;">Karen, Katie and Stephanie</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgi1b3_VDo8ic3oZPfcXOMIr9dcOgr1RbzZu4oXVjRZ05uiIaLadFFIFwxdp_XiA2rdj6SeMSIEdyBrnVGxEa3zr6syrRCges1ZBGFoxMuKgIBVQo5HV-Ld9hDBiP9PrIxJd4OtpQsBqc2u86_FeUSutWbZjxBYQIwDyfsixHLh3OCUz0Oyi2o_h3ISHyc/s640/KAY%20AND%20SANTA%2012.23.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="640" data-original-width="480" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgi1b3_VDo8ic3oZPfcXOMIr9dcOgr1RbzZu4oXVjRZ05uiIaLadFFIFwxdp_XiA2rdj6SeMSIEdyBrnVGxEa3zr6syrRCges1ZBGFoxMuKgIBVQo5HV-Ld9hDBiP9PrIxJd4OtpQsBqc2u86_FeUSutWbZjxBYQIwDyfsixHLh3OCUz0Oyi2o_h3ISHyc/w160-h213/KAY%20AND%20SANTA%2012.23.jpg" width="160" /></a></div><div style="text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgaTYRs2kJeBuGWEMi8pn4xVVrCRkF2WAGCO0ib0AmKB4kgyVVIMWVffcsCZTgprBwV55OZUFEqNyBj9HPsj2uWjUwZu1-RZ_PNkLBvv00UcEzO6_tZLZJ7M4S_ObdLh5S9uXEjcwCxEgpbNxsK4Ut8IDMZ1KIoSOqwR8yOArFSerpRKSBSQBtbEBH41DM/s640/ED%2012.23.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="480" data-original-width="640" height="175" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgaTYRs2kJeBuGWEMi8pn4xVVrCRkF2WAGCO0ib0AmKB4kgyVVIMWVffcsCZTgprBwV55OZUFEqNyBj9HPsj2uWjUwZu1-RZ_PNkLBvv00UcEzO6_tZLZJ7M4S_ObdLh5S9uXEjcwCxEgpbNxsK4Ut8IDMZ1KIoSOqwR8yOArFSerpRKSBSQBtbEBH41DM/w234-h175/ED%2012.23.jpg" width="234" /></a></div><br /><o:p></o:p><p></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-8598369570126590072023-11-06T12:55:00.002-08:002023-11-06T14:14:21.561-08:00TRICKS, TREATS AND TURKEY!<p>Well, that was fast!
Halloween has come and gone, and daylight savings is over. Personally, I dislike the darkness in the late
afternoon. <i>Time to get out my light
therapy lamp</i>! </p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"><b>INTEREST RATES<o:p></o:p></b></p>
<p class="MsoNormal">Rates have come down a bit over the past week, a welcome
relief.<span style="mso-spacerun: yes;"> </span>They are back down towards the
mid-7’s but as always, the rate you receive is dependent on a number of
factors. Why the downward trend?<span style="mso-spacerun: yes;"> </span>Although
the economy is still chugging along, new jobs numbers were lower than expected
and unemployment figures are up.<span style="mso-spacerun: yes;"> </span>We see
consumer spending on the rise coupled with higher consumer credit use, and
savings rates down.<span style="mso-spacerun: yes;"> </span>Please stop discretionary
spending so inflation can slow!<span style="mso-spacerun: yes;"> </span><span face=""Segoe UI Emoji",sans-serif" style="mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-char-type: symbol-ext; mso-hansi-font-family: Calibri; mso-hansi-theme-font: minor-latin; mso-symbol-font-family: "Segoe UI Emoji";">😊</span><o:p></o:p></p>
<p class="MsoNormal">The Fed did not raise their rate this month but has left the
door open to a future increase...<o:p></o:p></p>
<p class="MsoNormal"><b>HOME VALUES<o:p></o:p></b></p>
<p class="MsoNormal">Here in Southern California, along with most of the country,
<u>home prices are still rising due to the low inventory nationwide</u>.<span style="mso-spacerun: yes;"> </span>Be assured that an investment in real estate
in Orange County is a solid investment for future growth.<span style="mso-spacerun: yes;"> </span>Although rates will come down further at some
point, home prices will not.<span style="mso-spacerun: yes;"> </span>Buy now,
Refi later is the Mantra of lenders and realtors alike.<span style="mso-spacerun: yes;"> </span><b>Marry the Home, Date the Rate</b>!<o:p></o:p></p>
<p class="MsoNormal"><b>ATTENTION VETERANS!<o:p></o:p></b></p>
<p class="MsoNormal">Both VA loans and CalVet loans offer lower interest rates
and up to 100% financing of the purchase price.<span style="mso-spacerun: yes;">
</span>The CalVET program has rates lower than anything out in the market
today, plus they offer down payment/closing costs assistance with a “silent
second” that carries no payment for the first ten years.<span style="mso-spacerun: yes;"> </span>We salute our Veterans on Veteran’s Day this
November 11<sup>th.</sup><span style="mso-spacerun: yes;"> </span><b><i>Thank
you for your service!<o:p></o:p></i></b></p>
<p class="MsoNormal"><b>ACCESS EQUIITY WITHOUT TOUCHING YOUR LOW-RATE MORTGAGE<o:p></o:p></b></p>
<p class="MsoNormal">Almost every day we hear from clients who want to access
cash out of their home without touching their low-rate mortgage. We are here to help! You can use a personal loan to quickly access
cash by clicking here: <a href="https://www.lightstream.com/?cid=LP-L-LSL-lightstream-AmericanPacific-37087&subid=KarCar235218&fact=37087&isredirect=True " target="_blank">Personal loan link</a><o:p></o:p></p>
<p class="MsoNormal">You can also access cash using a HELOC (Home Equity Line of
Credit) and these come in floating rate lines or fixed rate loans.<span style="mso-spacerun: yes;"> </span>Your choice depends on your needs.<span style="mso-spacerun: yes;"> </span>We have programs available to assist you, so
reach out!<o:p></o:p></p>
<p class="MsoNormal"><i><u>Last but not least</u></i><u>,</u> <b>you can access
equity with a Reverse 2<sup>nd</sup> Mortgage</b>.<span style="mso-spacerun: yes;"> </span>As an example, your home is now worth <span style="mso-spacerun: yes;"> </span>$1.5M.<span style="mso-spacerun: yes;"> </span>Assuming<span style="mso-spacerun: yes;"> </span>you are age 70, and your current loan balance
is $350,000, you can access up to $200,000 in a reverse loan in 2<sup>nd</sup>
position <u>with no payment required</u>.<span style="mso-spacerun: yes;">
</span>These programs come in a few different setups.<span style="mso-spacerun: yes;"> </span>One requires interest only payments for ten years,
and then converts to no payment required.<span style="mso-spacerun: yes;">
</span>The other is standard, with no payment from the get-go.<span style="mso-spacerun: yes;"> </span><o:p></o:p></p>
<p class="MsoNormal"><b>THANKSGIVING<o:p></o:p></b></p>
<p class="MsoNormal">This is the time of year when we reflect on all that we have
to be grateful for.<span style="mso-spacerun: yes;"> </span>With all the turmoil
in the world, we are exceedingly lucky to live in such a beautiful and
relatively peaceful place.<span style="mso-spacerun: yes;"> </span>From our Team
to your family, we wish you a fabulous holiday with your family.<o:p></o:p></p><p class="MsoNormal"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjizJyYtIxZITPJdgnBt9xXvw2ieO3ASoKVi9omqbtcuJk7GUIm_lcOxqAGh3wpPc86hvnI-WapFMw_GsXz7yTHgARwkt3CRW3gxfbtQWPyCuS1tHDbRP-pxXkcawJJ4lgotYgGNVvZg_RSWfoOMZDuV2Gq431jDfZf6cAa3yBZacu9xzXhjZsE07CkM-k/s7360/Card%20Team%20Branding-JCHP-147.jpg" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="7360" data-original-width="4912" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjizJyYtIxZITPJdgnBt9xXvw2ieO3ASoKVi9omqbtcuJk7GUIm_lcOxqAGh3wpPc86hvnI-WapFMw_GsXz7yTHgARwkt3CRW3gxfbtQWPyCuS1tHDbRP-pxXkcawJJ4lgotYgGNVvZg_RSWfoOMZDuV2Gq431jDfZf6cAa3yBZacu9xzXhjZsE07CkM-k/s320/Card%20Team%20Branding-JCHP-147.jpg" width="214" /></a></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-74207316603071583442023-10-04T11:40:00.001-07:002023-10-04T11:40:09.710-07:00ADVERSITY, OPPORTUNITY AND FAST CASH!<p> </p><p class="MsoNormal"><b>MARKET UPDATE - ADVERSITY</b><o:p></o:p></p>
<p class="MsoNormal">The latest news for multi-family housing is developers have
slowed/stopped new construction.<span style="mso-spacerun: yes;"> </span>This is
primarily due to higher interest rates coupled with greater difficulty
qualifying for loans.<span style="mso-spacerun: yes;"> </span>This will translate
into higher rents, particularly in the coastal areas of California where
housing is already in short supply and high demand.<o:p></o:p></p>
<p class="MsoNormal">Translation:<span style="mso-spacerun: yes;"> </span><i><b>Prospective
buyers should not wait for rates or prices to come down, as neither is
likely in the next 12 months. </b></i><span style="mso-spacerun: yes;"> </span><u>No one
anticipates home values to decrease.</u><o:p></o:p></p>
<p class="MsoNormal"><b>OPPORTUNITIES</b><o:p></o:p></p>
<p class="MsoNormal">We are offering a<i> <u>personal loan program</u></i> – NOT a Mortgage
loan – for auto loans, remodels, swimming pools, debt consolidation, recreation
and more.<span style="mso-spacerun: yes;"> </span>This is not recorded on your home
and has no effect on the low rate first mortgage most of our clients have. The
turn time on these loans is extremely short, even overnight, and offers a quick and easy way to
access fast cash.<o:p></o:p></p>
<p class="MsoNormal">Loan amounts can vary from $5,000 to $100,000.<span style="mso-spacerun: yes;"> </span>Loans are underwritten based on income, assets,
and credit.<span style="mso-spacerun: yes;"> </span>The process is completely digital
and there are no up-front fees or prepayment penalties.<o:p></o:p></p>
<p class="MsoNormal">Click here for the link to a quick qualification process:<span style="mso-spacerun: yes;"> <a href="https://www.lightstream.com/?cid=LP-L-LSL-lightstream-AmericanPacific-37087&subid=KarCar235218&fact=37087&isredirect=True" target="_blank">Personal Loan Link</a></span><o:p></o:p></p>
<p class="MsoNormal"><b>REMINDERS</b><o:p></o:p></p>
<p class="MsoNormal">Real estate taxes are coming due, and must be paid by December 10<sup>th </sup>to avoid penalties The second half taxes are due by April 10th. Such great timing for Christmas and tax time, huh?</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal">Self-employed borrowers should have their taxes reviewed by us
prior to filing if they are considering making a home purchase or refinance in the
next two years. <u> </u><u>Writing off too many expenses
can kill a home purchase or refi, unless you want to use a bank statement loan which carries a higher rate.</u><o:p></o:p></p>
<p class="MsoNormal"><b>PERSONAL UPDATES</b><o:p></o:p></p>
<p class="MsoNormal">I’m writing this from Madera (just north of Fresno) where I am temporarily staying
with my sister who suffered a stroke.<span style="mso-spacerun: yes;"> </span>My
sister lives alone and we were extremely lucky her daughter sounded the alarm
when she could not contact her one morning.<span style="mso-spacerun: yes;"> </span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYF116idcqJ5wQbzpSWVwJOXwtLxzEqFy6DUF7JFdrwQIN20RohT8_kcT22hU5YkPVSwysT1i98d-KbCkGY8Cj6ow3rzvhjh8wIHiqqwEJRYPa-MWXqRMGDfU8sprwTKC5zDekN1kPQ_qTXC4zrHyEyqSLls1jIGU0RwdIc5gzgjggYBAKTqHrEm7trgI/s640/me%20and%20Katie.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="640" data-original-width="480" height="260" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYF116idcqJ5wQbzpSWVwJOXwtLxzEqFy6DUF7JFdrwQIN20RohT8_kcT22hU5YkPVSwysT1i98d-KbCkGY8Cj6ow3rzvhjh8wIHiqqwEJRYPa-MWXqRMGDfU8sprwTKC5zDekN1kPQ_qTXC4zrHyEyqSLls1jIGU0RwdIc5gzgjggYBAKTqHrEm7trgI/w195-h260/me%20and%20Katie.jpg" width="195" /></a></div><br />
<o:p></o:p><p></p>
<p class="MsoNormal">She is improving daily, and we expect a full recovery.<span style="mso-spacerun: yes;"> </span>This has been a big wakeup call and reminder
to be grateful every day, keep your loved ones close, always do your best and
be kind to all. And, take good care of your health.<o:p></o:p></p>
<p class="MsoNormal">As always, call us with any questions or concerns.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-39864687582402160452023-09-12T08:48:00.005-07:002023-09-12T08:48:50.381-07:00Labor Day Blues! Fall Market Update<p><span style="text-align: justify;">Summer is almost over, and the
children are all back to school. How did it possibly go by so fast? We had a
lot of rain and cold, and then a month of hot, muggy summer.</span></p><p class="MsoNormal" style="text-align: justify;"><o:p></o:p></p>
<p class="MsoNormal" style="text-align: justify;">Now we suddenly have the beaches
all to ourselves again (for those who live near the beach) while the kids’ sports
and school activities are getting very busy! <o:p></o:p></p>
<p class="MsoNormal" style="text-align: justify;">Unfortunately, not so for the
Real Estate market! We are still experiencing some of the lowest loan
application rates seen in 28 years. And rates continue to rise. We are well
over 7% for most conventional loans today. Now, if you look at history 7% + is
near the average, but what a sudden jump from 2022. And the short-term outlook
isn’t rosy as inflation is bouncing up again. This, more than anything, has a
direct effect on mortgage rates.<o:p></o:p></p>
<p class="MsoNormal" style="text-align: justify;"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">There have been seven rate
hiking cycles from 1968 to 2008/09 that ended in a recession. It has taken on
average 22 months from the first hike to the start of the recession. There were
two cycles that didn’t end in recession. So, who knows?<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: justify;"><b><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">INSURANCE CRISIS?<o:p></o:p></span></b></p>
<p class="MsoNormal" style="text-align: justify;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">State Farm, the largest home insurer
in California has stopped writing new policies as of June. Others including AIG
and Chubb are both NOT renewing policies in the state. AmGuard, Kemper and
Allstate are out now also. Farmers is limiting its new policies. <span style="mso-spacerun: yes;"> </span>Why? There are multiple factors, primarily
climate change, more fires, and higher costs to rebuild due to inflation. The California
State regulatory guidelines for insurers have not helped. <o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: justify;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Don’t hesitate to contact us if you
are experiencing insurance woes. We have a number of experts we can refer you
to who can find your homeowner’s policy a new home.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: justify;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">What does this spell for the long
term? It will make qualifying for a home loan more difficult with prices
rising, particularly in certain zip codes which are labeled as high fire hazard
areas. You know who you are! <o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: justify;"><b><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">FUN FAMILY STUFF<o:p></o:p></span></b></p>
<p class="MsoNormal" style="text-align: justify;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">We rounded out the end of summer with
a lot of time spent at the ArtAFair in Laguna Beach, where Steve showcased his
plein air and impressionist landscapes. For a neophyte he did very well and
also obtained some new commissions. What is leftover is coming back home and I
get to move my art in our home around a bit, which I enjoy. Changing up the
landscape, so to speak! <o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: justify;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">We enjoyed some great music at various
outdoor venues including the Art Festival and the Dana Point Concert series and
attended the Pageant of the Masters in the Laguna Bowl, which is always
entertaining.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: justify;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Labor Day weekend brought out a huge
crowd to the Dana Point Harbor, on various watercraft including surfboards,
SUP’s, floaties, kayaks, and all manner of boats to hear our favorite David Allen
Baker with the Kicking Giants band. What a hoot! </span><o:p></o:p></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-13628486458250829192023-08-07T13:13:00.001-07:002023-08-07T13:15:07.388-07:00HOT, MUGGY HEAT WAVE AND RATE HIKES<p> <b>RATE OUTLOOK</b></p>
<p class="MsoNormal">The recent heat wave has brought not only higher
temperatures across the country but also higher interest rates.<span style="mso-spacerun: yes;"> </span>I guess you could say “careful what you wish
for”…we were so tired of the cold, but we were not looking forward to a rate
rise.<o:p></o:p></p>
<p class="MsoNormal">With the recent Fed rate hike of another .25%, up to 5.5%, <i>it
brought Prime Rate to 8.5%.</i><span style="mso-spacerun: yes;"> </span>This is
the highest Prime Rate since 1991.<span style="mso-spacerun: yes;"> </span><b>What
is Prime Rate?</b><span style="mso-spacerun: yes;"> </span>It is the rate
generally used by banks to lend to customers with good credit and is oftentimes
used as an index for floating rate loans such as a Home Equity Line of Credit.<o:p></o:p></p>
<p class="MsoNormal">Mortgage rates have risen as a result and should level off
as we don’t anticipate any more Fed Funds rate hikes.<span style="mso-spacerun: yes;"> </span>Recession hopes (or fears) are lessening and
a soft landing seems to be on the horizon.<span style="mso-spacerun: yes;">
</span>What does that mean for interest rates?<span style="mso-spacerun: yes;">
</span>They are likely to ease more slowly<span class="msoIns"><ins cite="mailto:Stephanie%20Berry" datetime="2023-08-07T10:52"> </ins></span>than
we anticipated earlier in the year.<span style="mso-spacerun: yes;"> </span>They
will eventually come down, but it may take longer so don’t hold your breath for
rates in the 3’s or 4’s again.<span style="mso-spacerun: yes;"> </span><o:p></o:p></p>
<p class="MsoNormal"><u>Essentially, we’ve just about hit the average mortgage
rates for the last 50 years</u>. <span style="mso-spacerun: yes;"> </span>Back
when I had to walk miles through the snow to get to school, they were almost
identical to today before they shot up in the early 80’s (18%!) and proceeded to generally decline over time from that point until July
of 2021. <o:p></o:p></p><p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEhC8E-uEuqKms3aBixrmaAPmf-gheQeNkliZn_JU3s2SvlRiZ2_23VIHs0PZ_8ZL8tM7nN221CSgbRqz2Z-MYgmgmfCjUtOrJDfwRJpVqOX5r6c-ndlQ9gNvoD4zmLOKbkgWuD9at4S5xtGUaS5QV3x8mEFR8tZ_2T4yEgXop7pBtFDNb47cscop6D-j3U" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="1211" data-original-width="2234" height="208" src="https://blogger.googleusercontent.com/img/a/AVvXsEhC8E-uEuqKms3aBixrmaAPmf-gheQeNkliZn_JU3s2SvlRiZ2_23VIHs0PZ_8ZL8tM7nN221CSgbRqz2Z-MYgmgmfCjUtOrJDfwRJpVqOX5r6c-ndlQ9gNvoD4zmLOKbkgWuD9at4S5xtGUaS5QV3x8mEFR8tZ_2T4yEgXop7pBtFDNb47cscop6D-j3U=w385-h208" width="385" /></a></div><br /><b>PROPETY VALUES</b><p></p>
<p class="MsoNormal">While low inventory continues, there is little downward
pressure on home prices.<span style="mso-spacerun: yes;"> </span>It is now
apparent that few homeowners with a rate in the 2’s or 3’s have any motivation
to sell, unless they are moving out of state or are experiencing a life change--
(job change, divorce, or death) There are
rumors of stagnation in the “luxury” market, i.e. slower pace of selling for
homes over $2 to $3 Million. Home prices have risen as of the latest sales in most Southern California markets.<o:p></o:p></p>
<p class="MsoNormal"><b>CONSTRUCTION LOANS<o:p></o:p></b></p>
<p class="MsoNormal">Did you know…we have a construction lending department that
can provide construction loans for rehab purposes as well as new
construction.<span style="mso-spacerun: yes;"> </span>They are a bit more
complicated as funds are doled out as work is completed and invoices provided, and
there is a lot of up-front planning that takes place such as approval of architectural
plans, appraisal, contractor, etc.<o:p></o:p></p>
<p class="MsoNormal"><b>BEACH TIME and FAMILY UPDATES – Sailing and Swimming!<o:p></o:p></b></p>
<p class="MsoNormal">We recently spent four days camping in Carpinteria on the
beach.<span style="mso-spacerun: yes;"> </span>We had most of the family there,
which was a real treat.<span style="mso-spacerun: yes;"> </span>Barbeques, sitting
around the campfire, playing in the ocean and on the sand, and taking beach
walks in the morning was all part of the experience. We had to watch for the raccoons
who were voracious and got away with an entire carton of eggs one evening in
our presence!<span style="mso-spacerun: yes;"> </span>They are sneaky and fast!<o:p></o:p></p>
<p class="MsoNormal"><i>Grandson Theo</i> in San Diego has been killing it in his
sailing races.<span style="mso-spacerun: yes;"> </span>He just competed in the
Jr. National Sabot Championships in Newport at NHYC and came in 19<sup>th</sup>
overall out of 150 sailors.<span style="mso-spacerun: yes;"> </span>He was also in
the top 10 in the preliminaries.<span style="mso-spacerun: yes;">
</span>WOW!<span style="mso-spacerun: yes;"> </span>WAY TO GO THEO.<o:p></o:p></p>
<p class="MsoNormal">My <i>granddaughter Kay</i> (AKA Karen, my namesake) is age 6 and
just finished her very first swim meet and won both her events – the 25 free
and 25 fly.<span style="mso-spacerun: yes;"> </span>Big surprise as her mama, my partner Katie, was a very competitive swimmer through high school,
although college was all about Water Polo. <i>Go Bears!</i><o:p></o:p></p>
<p class="MsoNormal">As always, we are here to help with any questions!<span style="mso-spacerun: yes;"> </span><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-38444315985326687222023-07-10T13:03:00.004-07:002023-07-10T13:03:31.863-07:00SUMMER FINALLY ARRIVES FOR THE 4TH!<p>We hope everyone had a Happy and Safe 4<sup>th</sup> of
July! Ours was eventful with visiting children,
Water Wars in the Harbor, and a traditional barbeque crowned by the fireworks
in Dana Point.</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"><b>INTEREST RATES</b></p>
<p class="MsoNormal">Interest rates have risen to recent highs, due to continued
new job growth, dropping unemployment, and the Fed’s news that they will yet
again raise rates to slow inflation further.<span style="mso-spacerun: yes;">
</span>Although inflation has lowered to 4%, it has not yet hit the desired
target of 2 to 3%.<span style="mso-spacerun: yes;"> </span><o:p></o:p></p>
<p class="MsoNormal"><u>Most economists do expect rates to come down in the next six
months</u>, but they are not expecting as steep a drop as before.<span style="mso-spacerun: yes;"> </span>Our advice is to prepare for the “new normal.”<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><i>Once
rates stabilize, we will likely see rates in the 5’s for some time.</i><o:p></o:p></p>
<p class="MsoNormal"><b>MARKET UPDATE</b> <o:p></o:p></p>
<p class="MsoNormal">Home prices are very slightly off their highs of last
May.<span style="mso-spacerun: yes;"> </span>Orange county still has a $1
million median price, down from $1.05 million, while LA county has a median of
$800K, down from the $860K high a year ago.<span style="mso-spacerun: yes;">
</span><i><b>And, homes are again selling over list price!</b></i><o:p></o:p></p>
<p class="MsoNormal">The biggest issue continues to be a very low sales volume, which
can primarily be attributed to the paucity of listings.<span style="mso-spacerun: yes;"> </span>Of course, interest rates play into the
volume of sales, but there are so few listings there is little downward pressure
on home prices, if any.<o:p></o:p></p>
<p class="MsoNormal"><b>MOVING OUT OF STATE?<o:p></o:p></b></p>
<p class="MsoNormal">We are part of a large network of loan officers licensed in
all states in the country, save New York.<span style="mso-spacerun: yes;">
</span>We can assist our clients with financing when moving or buying a second
home out of the state of California.<o:p></o:p></p>
<p class="MsoNormal">The most common states to move to?<span style="mso-spacerun: yes;"> </span>Nevada, Arizona, Oregon, Idaho, and Texas.<span style="mso-spacerun: yes;"> </span>Lower taxes seem to be a large part of the
equation!<span style="mso-spacerun: yes;"> </span>There is also a migration out
of cities and into suburban or rural environments.<o:p></o:p></p>
<p class="MsoNormal"><b>THIS AND THAT<o:p></o:p></b></p>
<p class="MsoNormal">We continued our holiday celebration last Wednesday with a
pool party with dear friends.<span style="mso-spacerun: yes;"> </span>It was
lovely weather for the pool, and even better times with old friends!<span style="mso-spacerun: yes;"> </span>And, my sister joined me for a long weekend
to visit and attend the art festivals in Laguna!<span style="mso-spacerun: yes;"> </span>She is a new member of the Madera County Grand
Jury.<span style="mso-spacerun: yes;"> </span>Pretty impressive stuff!<o:p></o:p></p><p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEj27zwuG2LTok7dDAJdbKSnVFXus_SfUbXFsAKxLP98bd29VgvzpR6qJXQ8QyP6VThe65atBqndi_-Wa-h3uc7olBUC9Af3rU67A65tqeBq7ceZCTvRHc5TyrvQ24Nz9UQhWV0KjAMU9n2lnxAravHwBDaANlDy4AeXQhDtn0Ma951cWsUmxCQJqVTVDkI" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="730" data-original-width="547" height="307" src="https://blogger.googleusercontent.com/img/a/AVvXsEj27zwuG2LTok7dDAJdbKSnVFXus_SfUbXFsAKxLP98bd29VgvzpR6qJXQ8QyP6VThe65atBqndi_-Wa-h3uc7olBUC9Af3rU67A65tqeBq7ceZCTvRHc5TyrvQ24Nz9UQhWV0KjAMU9n2lnxAravHwBDaANlDy4AeXQhDtn0Ma951cWsUmxCQJqVTVDkI=w230-h307" width="230" /></a></div><br /><br /><p></p><p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEhke1SDq0sgyoDPy3-_K5DiFfRwmaXj0vNyBZVYVapg7TXlVxa7d9UeFnsPRaWEaUgVdtVNFq0-8ry51SmkUUTe4FKvUH8Bms-R7kTmugq23ssLQrEW-_dH8zWaJV6peUJnjCJSAsuCzgvOUkPVZqBXsx2OV_JZ72NaL2rwPBkX8e_XWuYZ-wEOgcRrh0k" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="414" data-original-width="551" height="208" src="https://blogger.googleusercontent.com/img/a/AVvXsEhke1SDq0sgyoDPy3-_K5DiFfRwmaXj0vNyBZVYVapg7TXlVxa7d9UeFnsPRaWEaUgVdtVNFq0-8ry51SmkUUTe4FKvUH8Bms-R7kTmugq23ssLQrEW-_dH8zWaJV6peUJnjCJSAsuCzgvOUkPVZqBXsx2OV_JZ72NaL2rwPBkX8e_XWuYZ-wEOgcRrh0k=w276-h208" width="276" /></a></div><br /><br /><p></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-17899201448507068972023-06-01T14:35:00.004-07:002023-06-01T14:35:34.757-07:00JUNE GLOOM -- MARKET GRIDLOCK<p> </p><p class="MsoNormal">I know you will all agree with me that the gloomy wet
weather needs to depart Southern California, so we can return to Sunny SoCal!<o:p></o:p></p>
<p class="MsoNormal"><b>RATES AND MARKET UPDATE<o:p></o:p></b></p>
<p class="MsoNormal">Home prices continue to rise, albeit more slowly.<span style="mso-spacerun: yes;"> </span>We are seeing a stronger return to the market
for buyers for the spring home buying season.<span style="mso-spacerun: yes;">
</span>However, we continued to be plagued with low inventory which is causing
a shift again to a strong seller’s market with multiple offers being received
for most properties.<o:p></o:p></p>
<p class="MsoNormal"><!--[if gte vml 1]><v:rect id="Ink_x0020_1" o:spid="_x0000_s1026"
style='position:absolute;margin-left:119.5pt;margin-top:14.6pt;width:291.55pt;
height:19.4pt;z-index:251659264;visibility:visible;mso-wrap-style:square;
mso-wrap-distance-left:9pt;mso-wrap-distance-top:0;mso-wrap-distance-right:9pt;
mso-wrap-distance-bottom:0;mso-position-horizontal:absolute;
mso-position-horizontal-relative:text;mso-position-vertical:absolute;
mso-position-vertical-relative:text' coordorigin=",1" coordsize="9986,85"
filled="f" strokecolor="#fffc00" strokeweight="6mm">
<v:stroke opacity="21845f" endcap="square"/>
<v:path shadowok="f" o:extrusionok="f" fillok="f" insetpenok="f"/>
<o:lock v:ext="edit" rotation="t" text="t"/>
<o:ink i="AHIdA9AKWgEQWM9UiuaXxU+PBvi60uGbIgMTSBRE//kDRawCRwFG2ARXCQAAAAUCC2QKQBKHeBgb
wFZ4nju6IVu3wN8eCCmIY52JwCsAxZieeoeAQGMQCFSCmwODRmAx6DwGCyeNRAAKABEgIGl6Mc6U
2QG=
" annotation="t"/>
</v:rect><![endif]--><!--[if !vml]--><span style="height: 98px; margin-left: 285px; margin-top: 196px; mso-ignore: vglayout; position: absolute; width: 712px; z-index: 251659264;"><br /></span><!--[endif]-->For those property owners who might consider
selling but are held back by higher interest rates for a purchase, remember
this:<span style="mso-spacerun: yes;"> </span><span style="background-color: #fcff01;">rates will come down and mortgages
can and will be refinanced.</span><span style="mso-spacerun: yes;"> </span><o:p></o:p></p>
<p class="MsoNormal"><b>MORTGAGE INDUSTRY NEWS<o:p></o:p></b></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]-->Some pesky fees for certain loans have been
reversed by the Agencies, e.g. Fannie and Freddie.<span style="mso-spacerun: yes;"> </span><u>This is great news for homebuyers who
would have faced higher rates for some loans.<span style="mso-spacerun: yes;">
</span>There was a great outcry by the mortgage industry and the additional fees
were removed.<o:p></o:p></u></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><i><u>Bank statement loans</u></i> for
self-employed individuals are gaining in popularity as their rates are now
competitive with standard full-documentation home loans.<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><i><u>Buying investment property</u></i> is
gaining in popularity and made much simpler with <u>Debt Service Coverage Ratio
loans</u>.<span style="mso-spacerun: yes;"> </span>These programs qualify the
buyer for financing based on the anticipated rental income coverage of the Mortgage
payment, taxes and insurance.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>The buyer does not qualify for a loan based on
her or his income, but on the property cash flow.<o:p></o:p></p>
<p class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo1; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><i><u>Income from an ADU</u></i> may now be considered
when qualifying for a mortgage.<span style="mso-spacerun: yes;"> </span>We have construction
loan programs that can finance the construction of an ADU.<o:p></o:p></p>
<p class="MsoNormal"><b>THIS AND THAT<o:p></o:p></b></p>
<p class="MsoNormal">We are off for a quick weekend visit to the wine country north
of Santa Barbara.<span style="mso-spacerun: yes;"> </span>We have a couple of
tasting events scheduled in the Foxen Canyon area, and will be tent-camping at
El Capitan with friends in their new RV.<span style="mso-spacerun: yes;">
</span><o:p></o:p></p>
<p class="MsoNormal">We also have a family camping adventure scheduled for late
July at Carpinteria State Beach. <span style="mso-spacerun: yes;"> </span>All the
kids and grandkids will be joining us.<span style="mso-spacerun: yes;">
</span>Can’t wait for some fun in the sun on the beach with games, biking, swimming
etc.<o:p></o:p></p>
<p class="MsoNormal">We just spent the Memorial Weekend celebrating our fallen
warriors with the Dana Point Yacht Club.<span style="mso-spacerun: yes;">
</span>There were many boats anchored in the marina to make space for visiting sailboat
racers.<span style="mso-spacerun: yes;"> </span>The raft-up is always filled
with fun, food and live Music on Sunday.<span style="mso-spacerun: yes;">
</span><o:p></o:p></p>
<p class="MsoNormal">Please reach out to us with questions!<span style="mso-spacerun: yes;"> </span>We are here to help!<o:p></o:p></p>
<p class="MsoNormal">Karen</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhu9gRIYQpUuCCno5_GaFGOHs-nSuMETZt3CXZKjo-U8V6tz9PhAOQ46gJR-m4TgyKIJhi1w4E9tTFhYRgxciun11hxSvqx2QyNEbCFyf0pSYSbEFJusxs4jzuPXu-tq8NwDV4_0CfWrpx9rChNqbg6NEj0VEedKwNqsyxMLzDbertTrHrN8NMcjkqY/s640/harbor%20sunset.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="480" data-original-width="640" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhu9gRIYQpUuCCno5_GaFGOHs-nSuMETZt3CXZKjo-U8V6tz9PhAOQ46gJR-m4TgyKIJhi1w4E9tTFhYRgxciun11hxSvqx2QyNEbCFyf0pSYSbEFJusxs4jzuPXu-tq8NwDV4_0CfWrpx9rChNqbg6NEj0VEedKwNqsyxMLzDbertTrHrN8NMcjkqY/s320/harbor%20sunset.jpg" width="320" /></a></div><br /><o:p></o:p><p></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-1947031195920851732023-04-26T10:33:00.006-07:002023-04-26T10:33:56.423-07:00Market Updates, Panama Canal and Scuba Diving<p> <b>THE MARKET</b></p><p class="MsoNormal">We just returned from our Company Summit meeting, with
industry updates, information about new programs, a variety of speakers, and
great information coupled with a lot of fun!
New technology allows us to have files quickly and completely approved
within 24-48 hours to allow realtors to avoid lengthy contract contingencies. Good news for buyers and agents alike! <o:p></o:p></p><p class="MsoNormal">We also have been using our Mobile App more and our clients
love it. They can do everything on their
file right from their phone, from uploading documents, to signing required
items. Wow!<o:p></o:p></p><p class="MsoNormal"><b>Rates are moving up and down a bit with no indication yet
of a real direction</b>. We continue to
expect rates to decrease by year end, as recession finally takes hold of the
economy. Home prices are holding steady, at least here in Southern California. <u>As of now there is still so little
inventory that there is no downward pressure on prices.</u> And, when rates do drop, there will be more
buyers ready, willing and able to step up competition for the homes that are on
the market. <b><i>So, why buy now?</i></b> Because when rates drop there will be more
competition for your dream home.<o:p></o:p></p><p class="MsoNormal"><b>PANAMA CANAL AND SCUBA DIVING<o:p></o:p></b></p><p class="MsoNormal">We escaped the local cool March weather and rain to complete
a “bucket list” trip through the Panama Canal and up to the Cayman Islands over
the last four weeks. We joined friends
on their 55’ sailboat in Panama City, awaiting clearance to go through the
canal. The locks were quite an
experience, as we went first up, and then down to get through to the Atlantic from
the Pacific Ocean over about 14 hours. <o:p></o:p></p><p class="MsoNormal">We then sailed to the San Blas islands which are inhabited
by the Guna peoples. These tiny tropical
islands are picture-postcard beautiful, and the people are friendly. They live in very primitive circumstances and
seem happy as clams!<o:p></o:p></p><p class="MsoNormal">Next we sailed to the island of San Andres off the coast of
Nicaragua (although it is Columbian) and spent a couple days there
resting/regrouping before our longer passage to Grand Cayman. <o:p></o:p></p><p class="MsoNormal">After our arrival at Georgetown yacht Club, and general boat
clean-up, we moved off the boat to the Sunset House Dive Resort for the last
week of our trip. We only saw a couple
of sharks and turtles-- but had a great time diving and touring Grand
Cayman. <o:p></o:p></p><p class="MsoNormal">The sailing was harrowing at times with a couple of mishaps involving sails and a lost kayak, but overall it was the adventure of a lifetime.<span style="font-family: Calibri, sans-serif; font-size: 11pt;"> </span></p><p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg90J17-97Kwz7uiPvkYxtbkC1xMrt6zx-_hvwE1C6QLt3YfpkesvxE-DjD8UdHxGHePLJNxZiL0xtlS1D3w3p-A-RIq65x6nqNpVNPmhWnXTNktRXbqDvLrAY-p_o5ylO2Vfbt2YS5VZfc9JhrX-A0I6GOrUEA2QqYjRgfbgEQBkmBZtkMGm2__lxb/s4608/P1190096.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="4608" data-original-width="3456" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg90J17-97Kwz7uiPvkYxtbkC1xMrt6zx-_hvwE1C6QLt3YfpkesvxE-DjD8UdHxGHePLJNxZiL0xtlS1D3w3p-A-RIq65x6nqNpVNPmhWnXTNktRXbqDvLrAY-p_o5ylO2Vfbt2YS5VZfc9JhrX-A0I6GOrUEA2QqYjRgfbgEQBkmBZtkMGm2__lxb/s320/P1190096.JPG" width="240" /></a></div><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgp0lDsb9zDWKqjuRzMEUYaxHK50l6yFnhvKU0spcRUhvH-P6-FkHsvQRO0hfQs6gcJw5xHccqeHlctfvpIjtGkLCmFM2A1IcXCdLwLgV6pJ-hrBTBkV1bNuYTUepv_uwgnNvxHfelVvmFiXSP2uUybBiwZ5XuQuHaRTaEb0d8VUUOW3MVaU4HgXV1s/s4608/P1190273.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="4608" data-original-width="3456" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgp0lDsb9zDWKqjuRzMEUYaxHK50l6yFnhvKU0spcRUhvH-P6-FkHsvQRO0hfQs6gcJw5xHccqeHlctfvpIjtGkLCmFM2A1IcXCdLwLgV6pJ-hrBTBkV1bNuYTUepv_uwgnNvxHfelVvmFiXSP2uUybBiwZ5XuQuHaRTaEb0d8VUUOW3MVaU4HgXV1s/s320/P1190273.JPG" width="240" /></a></div><br /><br /><span style="font-family: Calibri, sans-serif; font-size: 11pt;"><br /></span><p></p><p></p><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><p></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-61571630773767102762023-03-07T15:37:00.000-08:002023-03-07T15:37:01.388-08:00FHA AND VA LOANS LOOKING BETTER!<p><b>BIG NEWS ON FHA AND VA LOANS! </b></p>
<p class="MsoNormal">HUD has finally reduced the monthly Mortgage Insurance (MI) premiums
for FHA loans. We’ve been anxiously awaiting this correction since they had amassed
a rather large overage of funds collected for this insurance, which basically
protects the lender from losses on high loan-to-value loans.<o:p></o:p></p>
<p class="MsoNormal"><u>This is great news for first time homebuyers with low
down payments.</u><span style="mso-spacerun: yes;"> </span>The drop in monthly MI
of 35 basis points presents a big savings in the monthly payment, particularly
for those with 3.5% to 5% down, on purchases up to $1.1 million.<span style="mso-spacerun: yes;"> </span>Savings is in the range of over $3000
annually.<o:p></o:p></p>
<p class="MsoNormal">VA has reduced their upfront Funding Fee, which is a fee
charged by the VA for all VA loans.<span style="mso-spacerun: yes;"> </span>This
fee is paid directly to the VA and is typically added to the loan balance so it is financed over time as part of the loan payment.<span style="mso-spacerun: yes;">
</span>This reduction makes it more attractive for repeat uses of VA loans,
which offer lower interest rates and higher loan-to-values, without any
Mortgage Insurance.<span style="mso-spacerun: yes;"> </span><o:p></o:p></p>
<p class="MsoNormal"><b>WHO WANTS TO SELL?<o:p></o:p></b></p>
<p class="MsoNormal">Our inventory of homes for sale is shrinking again
locally.<span style="mso-spacerun: yes;"> </span>This means that sales volume
has dropped quite a bit.<span style="mso-spacerun: yes;"> </span>Many homeowners
who might like to sell are postponing a move, as they don’t want to lose that <i>low
interest rate loan</i> they currently have.<o:p></o:p></p>
<p class="MsoNormal">But it also means that home prices are just not going to
drop much at all, at least locally.<span style="mso-spacerun: yes;">
</span>Demand is currently about equal to or exceeding supply.<span style="mso-spacerun: yes;"> </span>We aren’t seeing multiple offers on
properties, but we also aren’t seeing big price drops. <o:p></o:p></p>
<p class="MsoNormal">We still see this as a great opportunity for those
homebuyers with the stomach for higher rates, as they have little competition.<span style="mso-spacerun: yes;"> </span>And those buyers who move in now will have
the opportunity to drop their rates and refinance sometime later in the year,
or early next year, when we anticipate rates to drop.<o:p></o:p></p>
<p class="MsoNormal"><b>PET UPDATE<o:p></o:p></b></p>
<p class="MsoNormal">After quite a long hiatus, we decided to adopt two cats
(siblings) last July.<span style="mso-spacerun: yes;"> </span>It has been an
adjustment but they have settled in and we are enjoying their company. <span style="mso-spacerun: yes;"> </span>The only thing we forgot is now we have to
have cat sitters while we are out of town!<span style="mso-spacerun: yes;">
</span>Isabel and Theo are here:</p><p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: left;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEislfTPGMtQFhACISt_s1P6PVASmTTQGQ1kLvrFvUvQoBst6C4HQZmLhEYX-K3JDlBh9Iz1-8HDs3w0jfNqYFIG3OOWiU_nnfUqpg6Q1AQGeF2rlECDOYvvqIbw83xcz44WRL5IGxZTSrkAJfEIc8iq9JWNUjGZR_30jffHPa-qYN1padC_EEsmFTff/s552/cats%20edited.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="552" data-original-width="362" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEislfTPGMtQFhACISt_s1P6PVASmTTQGQ1kLvrFvUvQoBst6C4HQZmLhEYX-K3JDlBh9Iz1-8HDs3w0jfNqYFIG3OOWiU_nnfUqpg6Q1AQGeF2rlECDOYvvqIbw83xcz44WRL5IGxZTSrkAJfEIc8iq9JWNUjGZR_30jffHPa-qYN1padC_EEsmFTff/s320/cats%20edited.jpg" width="210" /></a>As always please reach out with questions on these programs.</div><p></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-62293812566292676952023-02-04T14:21:00.001-08:002023-02-04T14:21:46.685-08:00GIFT FUNDS --- AND ARM LOANS<p> <b>ARE YOU TAXED ON GIFT FUNDS?</b></p>
<p class="MsoNormal">One of the most common questions we hear from home buyers is
about gift funds.<span style="mso-spacerun: yes;"> </span><i><u>You can use gift
funds from a relative towards a down payment and in most cases, there is no tax
consequence to the donor.</u><o:p></o:p></i></p>
<p class="MsoNormal">The current annual amount that is tax-free, or excluded from
taxes, is <b>$17,000 per donor per individual</b>.<span style="mso-spacerun: yes;">
</span>For example, a couple may gift to their child $34,000 tax-free.<span style="mso-spacerun: yes;"> </span>($17K per donor) They may also gift $34,000
to their child’s spouse.<span style="mso-spacerun: yes;"> </span>And, to all
their other children and spouses, grandchildren, etc. at $17,000 <u>per donor
per recipient</u>.<span style="mso-spacerun: yes;"> </span><o:p></o:p></p>
<p class="MsoNormal">But, what if they gift a larger sum, $200,000 or more?<span style="mso-spacerun: yes;"> </span>Right now, the lifetime exclusion for gift
tax is $12,920.000.<span style="mso-spacerun: yes;"> </span><b>Yes, almost $13 million
per individual</b>.<span style="mso-spacerun: yes;"> </span>A gift larger than
$17,000 per individual must be reported to the IRS on form 709 and yet, no tax
is due unless and until the donor passes the threshold of $12.92 million.<span style="mso-spacerun: yes;"> </span>However, this threshold expires in
2026.<span style="mso-spacerun: yes;"> </span>At that point it will likely
revert back to $5 or $6 million.<span style="mso-spacerun: yes;"> </span>Funds
already gifted over that threshold will be “grandfathered” and no gift tax will
be due.<o:p></o:p></p>
<p class="MsoNormal"><i>We always suggest consulting with a professional CPA, tax
preparer or estate attorney on these matters.</i><span style="mso-spacerun: yes;">
</span>But, for most of the “hoi polloi” (the common people, or the masses)
this will likely not present a future tax issue.<span style="mso-spacerun: yes;"> </span>If you are a Hoi Oligoi (elite or the few)
you may owe taxes for larger gifts.<o:p></o:p></p>
<p class="MsoNormal"><b>RATES and ARMs<o:p></o:p></b></p>
<p class="MsoNormal">You’d think that short term ARMS (<i>Adjustable Rate
Mortgages</i>) would have lower rates, right?<span style="mso-spacerun: yes;">
</span>Not in this environment.<span style="mso-spacerun: yes;"> </span>Since
the market anticipates more volatility in the short term-- <u>and that rates
will drop sooner than later</u>, short term rates, for 5- and 7-year ARMs are
HIGHER than for 30 year fixed rate loans right now.<span style="mso-spacerun: yes;"> </span><i>This is the dreaded “inverted yield curve”
foretelling recession on the horizon</i>.<span style="mso-spacerun: yes;">
</span><o:p></o:p></p>
<p class="MsoNormal"><b>INCOME TAXES<o:p></o:p></b></p>
<p class="MsoNormal">Yes, it is that time of year again! We are in the process of
sending out the final closing statements for all clients who closed a loan in 2022.<span style="mso-spacerun: yes;"> </span>This is necessary when prepping for your 2022
tax return.<span style="mso-spacerun: yes;"> </span>This year the due date is
April 18 for individual federal tax returns. The IRS is already accepting
filings. <b><i>REMEMBER IF YOU PLAN TO BUY OR REFINANCE THIS YEAR, HAVE YOUR
LOAN OFFICER REVIEW DRAFTS PRIOR TO FILING. </i><o:p></o:p></b></p>
<p class="MsoNormal">Recently a client reached out with a complaint regarding
capital gains on the sale of a rental.<span style="mso-spacerun: yes;">
</span>This in turn affected her Medicare premiums.<span style="mso-spacerun: yes;"> </span>A quick review of her taxes <u>revealed her
CPA had entered the wrong basis for the property upon inheritance,</u> which means
she overpaid by a hefty amount on her taxes.<span style="mso-spacerun: yes;">
</span>Good news:<span style="mso-spacerun: yes;"> </span>Amending the returns
will result if a refund of over $30,000 and an attendant reduction in the
Medicare premiums.<o:p></o:p></p>
<p class="MsoNormal"><b>REVERSE FOR PURCHASE LOAN<o:p></o:p></b></p>
<p class="MsoNormal">Yes, you can use a reverse loan to buy a home.<span style="mso-spacerun: yes;"> </span>This increases your buying power, and there
is no monthly payment required for the loan. Please reach out to us for more
information.<span style="mso-spacerun: yes;"> </span>These are a very useful
tool in the retirement planning process.<o:p></o:p></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-8365105227487404202023-01-09T15:59:00.002-08:002023-01-10T13:36:37.158-08:00Rain, Rain, and....Rates!<p><b>Happy New Year!</b> 2022 was a humdinger!!! The
start of 2023 has brought a lot of cold weather and rain here in California. We need the rain and snow, so we can’t
complain too much. <i>We need to sit
back and enjoy sweater weather.</i></p>
<p class="MsoNormal"><b>RATE AND HOUSING OUTLOOK<o:p></o:p></b></p>
<p class="MsoNormal">Interest rates have remained relatively flat for the month
of December and show no signs of coming down…yet!<span style="mso-spacerun: yes;"> </span>Most “experts” are banking on a drop by the
end of this year.<span style="mso-spacerun: yes;"> </span><b><i>Home prices are
on a downward trend with the median home price in both Orange and Los Angeles
counties dropping a bit.</i></b><span style="mso-spacerun: yes;"> </span>Orange
County is down to $960,000 and La County is down to $865,000. <o:p></o:p></p>
<p class="MsoNormal"><u>Many buyers are either using a permanent “rate buydown”
paid by either buyer or seller, or a 2-1 buydown paid by the seller</u>.<span style="mso-spacerun: yes;"> </span>This has the effect of reducing the rate and
payment to a more affordable level.<span style="mso-spacerun: yes;"> </span>Most
homes are not receiving multiple offers, so the buyer is in the driver’s seat
today.<o:p></o:p></p>
<p class="MsoNormal"><b>BUY/FI Program<o:p></o:p></b></p>
<p class="MsoNormal">We offer a program where any client who closes a purchase
before April 30<sup>th</sup> can refinance that loan with us – at a lower rate,
as anticipated by next year, with <b>NO LENDER FEES</b>.<span style="mso-spacerun: yes;"> </span><i>We will waive all lender fees so long as
the refinance is completed by end of 2024. </i><span style="mso-spacerun: yes;"> </span>This provides a great motivation to buy now,
and refinance later to lower your interest rate.<span style="mso-spacerun: yes;"> </span><u>Less competition + lower prices = good
timing to buy now, and refinance later.<o:p></o:p></u></p>
<p class="MsoNormal"><b>HOMEBOT<o:p></o:p></b></p>
<p class="MsoNormal">This is a cool service providing a monthly digest including
a lot of information about your home value and neighborhood.<span style="mso-spacerun: yes;"> </span>It will also note opportunities to sell or
refinance.<span style="mso-spacerun: yes;"> </span>Our clients love it, and if
you aren’t receiving it yet you can click here to sign up: <span style="color: #005a7c; mso-bidi-font-family: "Times New Roman";"><a href="https://hmbt.co/VxriyN">Home Owners</a></span> <o:p></o:p></p>
<p class="MsoNormal">For prospective buyers, it is also a useful tool for watching
market activity and values in a specific area.<span style="mso-spacerun: yes;">
</span>Potential buyers should click here to sign up: <span style="color: #005a7c; mso-bidi-font-family: "Times New Roman";"><a href="https://hmbt.co/4RKRjh">Home Buyers</a></span><o:p></o:p></p>
<p class="MsoNormal"><b>HELOCS<o:p></o:p></b></p>
<p class="MsoNormal">Home Equity Lines of Credit are very popular currently for
homeowners who want to pull cash out of their home for home improvements or
revolving debt payoff, but don’t want to touch their low interest rate
mortgage.<span style="mso-spacerun: yes;"> </span><i>We have some competitive
programs to offer to our clients.</i><o:p></o:p></p>
<p class="MsoNormal"><b>WE LOVE REFERRALS</b></p><p class="MsoNormal"><span style="text-align: right;">We work hard for our clients and do our utmost to provide
clear information and choices, and great communication.</span><span style="text-align: right;"> </span><i style="text-align: right;">We truly care about our clients and always
try to provide the best experience for their home loan</i><span style="text-align: right;">.</span><span style="text-align: right;"> </span><u style="text-align: right;">Please think of us when you hear of a
friend or relative who could use our help.
We love referrals.</u></p><p class="MsoNormal"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjLU_RBCIb3xhzFVfX2knegFEFCMexhSzryNtFTNj7Ice9e3OchWVmj71M_QOCKpzXQFbIiuHX2q6iiBAvcUJkKjks6-mxdjmAZyWgRppBI0W-9wy5v-65J6-WKq0KBPDue5ALYWX6VWL2-ldHsDnC8Rsgnbnt6SEBw89zF1ljYa59srZvVe-or_Kpx/s460/christmas%20Eve%20crop.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="460" data-original-width="366" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjLU_RBCIb3xhzFVfX2knegFEFCMexhSzryNtFTNj7Ice9e3OchWVmj71M_QOCKpzXQFbIiuHX2q6iiBAvcUJkKjks6-mxdjmAZyWgRppBI0W-9wy5v-65J6-WKq0KBPDue5ALYWX6VWL2-ldHsDnC8Rsgnbnt6SEBw89zF1ljYa59srZvVe-or_Kpx/s320/christmas%20Eve%20crop.jpg" width="255" /></a><u><br /><span style="mso-spacerun: yes;"><br /></span></u></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-46339595335295466952022-12-15T14:58:00.000-08:002022-12-15T14:58:35.016-08:00 Interest Rates Trending Lower!<p>With the Christmas season upon us, <b><i>we want to wish you
all a safe and joyous holiday</i>! </b></p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"><b>MARKET AND RATE OUTLOOK<o:p></o:p></b></p>
<p class="MsoNormal">While this year has been stressful in many ways, interest
rates have improved over the past two months and home prices have continued to
drop. These combine to make it much more
attractive for homebuyers to move forward!
Although we still have a shortage of inventory, we are definitely seeing
sellers who are willing to work with buyers on credits to closing costs and
rate buydowns. <o:p></o:p></p>
<p class="MsoNormal">Most economists see us entering recession sometime next
year. There is no agreement on the
timing of recession, however. Whether
sooner or later in the year and short or lasting for a longer time period, it
will bring interest rates down.<o:p></o:p></p>
<p class="MsoNormal"><b>2022 INCOME TAXES<o:p></o:p></b></p>
<p class="MsoNormal"><u>We always urge clients to allow us to review draft taxes
PRIOR to filing. This is particularly
poignant for self-employed individuals or those who own rental properties.</u> <o:p></o:p></p>
<p class="MsoNormal">If you are planning a refinance or a home purchase in the
next year or two, it is essential to strategize with your tax and finance professionals
to ensure a successful transaction. Oftentimes
we work with clients for over a year to be well-positioned for a new mortgage
transaction.<o:p></o:p></p>
<p class="MsoNormal"><b>1031 EXCHANGE<o:p></o:p></b></p>
<p class="MsoNormal">We have handled these in the past and are currently working
with three 1031 exchange situations. If
you have a rental property to sell, we can assist with financing the purchase.<o:p></o:p></p>
<p class="MsoNormal"><b>ADVENTURES<o:p></o:p></b></p>
<p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjAXfLuo-0es_WzFPvVPGHViR-Ybocxu-QcULJRJIlrYs0Iac-HX8YjqymabByhHCrSSBqWrml5qAhSk9UZZvMYrkNHiH4A-yN-xS2cLfLKFq5-wAapitMEJ_OOzQDG6Cch5BKVyeJxS19jZEb_EY51Idi6QuFJ01pxJiK3D8VpeJD5j4Nn8wNWuLJz/s640/shot%20of%20harbor.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="480" data-original-width="640" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjAXfLuo-0es_WzFPvVPGHViR-Ybocxu-QcULJRJIlrYs0Iac-HX8YjqymabByhHCrSSBqWrml5qAhSk9UZZvMYrkNHiH4A-yN-xS2cLfLKFq5-wAapitMEJ_OOzQDG6Cch5BKVyeJxS19jZEb_EY51Idi6QuFJ01pxJiK3D8VpeJD5j4Nn8wNWuLJz/s320/shot%20of%20harbor.jpg" width="320" /></a></div><br />Steve and I recently completed two legs of an epic sailing
journey with friends. Our friends are relocating
their sailboat from Dana Point to Ft. Lauderdale. This involves quite a long trip through the
Panama Canal. The first leg we sailed
was down the coast to Cabo San Lucas.
This leg took ten days with stops in three bays. The second leg was from Loreto across the Sea
of Cortez to Mazatlán and was fairly quick.
We will be joining the boat again next April for the trip through the
Canal and onto the Cayman Islands. Some
scuba diving may be involved!<o:p></o:p><p></p>
<span style="line-height: 107%;"><div style="font-family: "Times New Roman", serif;"><span style="font-family: Calibri, sans-serif;"><br /></span></div><div style="font-family: "Times New Roman", serif;"><span style="font-family: Calibri, sans-serif;">Thank you again to all our wonderful clients and
partners! </span><span style="font-family: Calibri, sans-serif;">We appreciate you more than
you know!</span><span style="font-family: Calibri, sans-serif;"> </span><span style="font-family: Calibri, sans-serif;">We wish you all a fabulous
holiday and a prosperous 2023!</span></div></span>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-72819252976241176152022-11-16T11:03:00.000-08:002022-11-16T11:03:29.260-08:00The Holidays are Upon Us!<p> As we look forward to celebrating Thanksgiving this year
with family, we want to wish you all a wonderful holiday next week. We have so much to be thankful for, including
our clients and their referrals. You are
appreciated!</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal">This year we were able to generate a $10,000 donation to <b><i>“You
Run This Town”</i></b>, a non-profit focused on at-risk youth.<span style="mso-spacerun: yes;"> </span>They held their first annual golf tournament,
and we were able to participate.<span style="mso-spacerun: yes;"> </span>Steve
and I golfed with another couple, and Katie acted as the event coordinator and
MC for the day.<o:p></o:p></p>
<p class="MsoNormal"><b>BUYING SEASON?<o:p></o:p></b></p>
<p class="MsoNormal">In the past the typical home buying season was springtime
through summer.<span style="mso-spacerun: yes;"> </span>Now, there is no actual
buying season, as volume does not tend to slow down as much during the
holidays.<span style="mso-spacerun: yes;"> </span>We are working with active
buyers as I write this, who are benefitting from the recent home price reductions.<span style="mso-spacerun: yes;"> </span>The days of multiple offers on a property are
gone, <b><i>so buyers have much more power than earlier in the year</i>.</b><span style="mso-spacerun: yes;"> </span><o:p></o:p></p>
<p class="MsoNormal"><b>RATES AND PROGRAMS<o:p></o:p></b></p>
<p class="MsoNormal">While rates have continued to rise, they seem to have
leveled off somewhat in the last couple of weeks.<span style="mso-spacerun: yes;"> </span>We are hopeful that the Fed will slow down rate
bumps in an effort to tame inflation. <u><span style="mso-fareast-font-family: "Times New Roman";">And the concept of refinancing as soon as rates drop in the
future is becoming a common theme with many of my clients who are buying or
refinancing right now.</span><o:p></o:p></u></p>
<p class="MsoNormal"><b>Permanent rate buydowns and 2-1 rate buydowns </b>are
becoming commonplace.<span style="mso-spacerun: yes;"> </span>A <u>permanent
buydown</u> can be paid for by either the seller or the buyer, and with say two
points (2% of loan amount) this will reduce the interest rate permanently by
around 1.75%.<o:p></o:p></p>
<p class="MsoNormal">A 2-1 buydown works like this:<span style="mso-spacerun: yes;"> </span>In the first year, the rate is reduced by
2%;<span style="mso-spacerun: yes;"> </span>in the 2<sup>nd</sup> year, by
1%;<span style="mso-spacerun: yes;"> </span>and in the 3<sup>rd</sup> year goes
up to the original market rate.<span style="mso-spacerun: yes;"> </span><u>The buyer
still must qualify at the higher original rate, but they receive the benefit of
lower payments for the first two years.</u><span style="mso-spacerun: yes;">
</span><b>This type of buydown must be paid by the seller and cannot be paid by
buyer.</b><span style="mso-spacerun: yes;"> </span>The hope is that when rates drop
(AND THEY WILL!) the loan can be refinanced. Any funds leftover for the buydown
at the time of refinance will be credited to the loan balance, reducing the
payoff.<span style="mso-spacerun: yes;"> </span>The cost for the 2-1 buydown is
essentially the same as it is for the permanent buydown. But only the seller
can pay for it.<o:p></o:p></p>
<p class="MsoNormal"><b>Debt Service Coverage</b> programs are also popular for
use with rental properties.<span style="mso-spacerun: yes;"> </span>These loans
are not underwritten with an eye to the borrower’s income but focus on the
income from the rental property in order to qualify for a loan.<span style="mso-spacerun: yes;"> </span>Much simpler and easier.<span style="mso-spacerun: yes;"> </span>Rates are higher for rental property,
however.<o:p></o:p></p>
<p class="MsoNormal"><b>SAILING TO CABO SAN LUCAS<o:p></o:p></b></p>
<p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: right;"><br /></div>Steve and I recently returned from a sailing trip down the
coast from Dana Point to San Jose del Cabo.<span style="mso-spacerun: yes;">
</span>We accompanied friends on their sailboat, which will eventually end up
in Ft. Lauderdale.<span style="mso-spacerun: yes;"> </span>It was quite an
adventure, filled with catching tuna, flying spinnakers, anchoring in bays on
the way south, and some card games at night while at anchor.<span style="mso-spacerun: yes;"> </span>Night watches did get exciting a couple of
times!<span style="mso-spacerun: yes;"> </span>We will rejoin our friends soon
in Loreto to sail to Mazatlán before flying home.<span style="mso-spacerun: yes;"> </span>A little scuba diving may be involved…<o:p></o:p><p></p>
<p class="MsoNormal">Please reach out to us with any questions, and travel safely
over the holiday!<o:p></o:p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiU2EAQAx7SUefRGTZ7ptYZ903J0gAf7NI72qua0RGl4wec4ZcF5_OFi4lqGzGN3NVrpBpWS8yVsG5_7X_FpcZ_TNOuBmE3CVp24-oD_Ls5EGeLPmKZTzxzfT6qh3O9tX4MSHV2Ydbe5xzAJrI_g-6vAFXCknuoDNoOaFDlm6ekzU9sCsTE1J5RyWCU/s640/at%20anchor.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="640" data-original-width="480" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiU2EAQAx7SUefRGTZ7ptYZ903J0gAf7NI72qua0RGl4wec4ZcF5_OFi4lqGzGN3NVrpBpWS8yVsG5_7X_FpcZ_TNOuBmE3CVp24-oD_Ls5EGeLPmKZTzxzfT6qh3O9tX4MSHV2Ydbe5xzAJrI_g-6vAFXCknuoDNoOaFDlm6ekzU9sCsTE1J5RyWCU/s320/at%20anchor.jpg" width="240" /></a></div><br />Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-63616793461706442132022-10-10T16:21:00.000-07:002022-10-10T16:21:07.935-07:00“To reverse or not to reverse, that is the question.”<p> <b>5 common misconceptions about reverse loans that I STILL
hear, almost every week:</b></p><p></p><p class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -.25in;"></p><ol style="text-align: left;"><li><span style="font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span>The bank owns the home. <b>YOU OWN THE HOME</b></li><li><span style="font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span>When I die the bank takes over the home. <b>YOUR HEIRS INHERIT THE PROPERTY</b></li><li><b><span style="font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></b><!--[endif]-->Reverse loans are only for people in dire
straits. <b>FINANCIAL PLANNERS USE THEM
AS A TOOL TO OFFSET DRAINING TAXABLE RETIREMENT ASSETS<o:p></o:p></b></li><li><b><span style="font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></b><!--[endif]-->The bank will foreclose when one spouse dies. <b>THE LOAN REMAINS IN PLACE UNTIL BOTH
SPOUSES HAVE PERMANENTLY MOVED OUT.<o:p></o:p></b></li><li><b><span style="font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></b><!--[endif]-->I will be taxed on the funds I pull out. <b>FUNDS RECEIVED ARE TAX FREE.<o:p></o:p></b></li></ol><!--[if !supportLists]--><o:p></o:p><p></p><p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;"><o:p></o:p></p><p class="MsoListParagraphCxSpLast"><o:p> </o:p><u>Let me know if you want to start talking about whether a
reverse mortgage might be right for you.</u></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal">
</p><p class="MsoNormal"><b>MARKET UPDATE<o:p></o:p></b></p>
<p class="MsoNormal">It has certainly been a strange couple of months.<span style="mso-spacerun: yes;"> </span>Rates came down a bit, then bounced higher. <span style="mso-spacerun: yes;"> </span>The market continues to be extremely volatile.<o:p></o:p></p>
<p class="MsoNormal">Right now rates are running between 5.5% to 7% depending on
program chosen and other factors such as FICO score, Loan to Value, etc.<span style="mso-spacerun: yes;"> </span>While property appreciation is decelerating,
we are not seeing a drop in values, at least here in California.<span style="mso-spacerun: yes;"> </span>Builders have slowed on new construction which
limits supply, and there is still a shortage of available inventory.<span style="mso-spacerun: yes;"> </span>Although affordability has removed some players
from the field, for those who can qualify there is quite a bit of room for
negotiation<i>.<span style="mso-spacerun: yes;"> </span>A seller credit to buy
down the interest rate is becoming quite common.</i><span style="mso-spacerun: yes;"> </span><o:p></o:p></p>
<p class="MsoNormal">The new lender mantra is <b>“Marry the house, but date the rate
and<span style="mso-spacerun: yes;"> </span>the payment.”</b><span style="mso-spacerun: yes;"> </span>When rates come down, <u>and they will</u>, there
will be time to refinance for those who buy now.<span style="mso-spacerun: yes;"> </span>And, buyers still have the upper hand towards
building net worth by owning vs. renting.<span style="mso-spacerun: yes;">
</span><o:p></o:p></p>
<p class="MsoNormal">The number of offers per property listed has decreased
dramatically, so the buyer is definitely moving into the driver’s seat.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>And
time on the market is increasing, while 40% of listings have reduced their
price.<o:p></o:p></p>
<p class="MsoNormal"><b>SCUBA DIVING<o:p></o:p></b></p>
<p class="MsoNormal">We just returned from a quick trip to Cabo Pulmo on the Southern
East Cape of Baja.<span style="mso-spacerun: yes;"> </span>This is a protected
marine park with a coral reef and lots of fish.<span style="mso-spacerun: yes;">
</span>Jacques Cousteau called it the Aquarium of the World with good
reason.<span style="mso-spacerun: yes;"> </span>The sheer volume of fish is
astounding.<span style="mso-spacerun: yes;"> </span>In addition to many varieties
of tropical fish, we saw a large school of jacks, a white tip shark, some turtles
and rays.<o:p></o:p></p>
<p class="MsoNormal">We traveled with a group of divers from the Dana Point Yacht
Club.</p><p class="MsoNormal"><b><o:p></o:p></b></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiVpPkb7mdwrWVucWpQCAHeootXb07t0xRzJM7ZQbUBGWtJIt7tsdhFXyeyrpQh8qNemgb0X4JjZ-OM06qe7DMQt5IZJcGjTR5olGg3H2kiYCpEt88CY18YeK5NFOjTPVwl7h0gDXZEe1a4cnW2KTUB4JxodVkA2rFWRuBjchJflnSRxo1ad9HE3OZ6/s543/SC%202%20FOOTBALL.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="543" data-original-width="480" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiVpPkb7mdwrWVucWpQCAHeootXb07t0xRzJM7ZQbUBGWtJIt7tsdhFXyeyrpQh8qNemgb0X4JjZ-OM06qe7DMQt5IZJcGjTR5olGg3H2kiYCpEt88CY18YeK5NFOjTPVwl7h0gDXZEe1a4cnW2KTUB4JxodVkA2rFWRuBjchJflnSRxo1ad9HE3OZ6/s320/SC%202%20FOOTBALL.jpg" width="283" /></a></div><b>FOOTBALL</b><p></p>
<p class="MsoNormal">As a lifelong USC fan and alum, I am happy to see our team
finally consistently winning this year. I was able to attend the game vs.
Washington on Saturday and had a blast with my grandkids.<span style="mso-spacerun: yes;"> </span><o:p></o:p></p>
<p class="MsoNormal">GO TROJANS!<o:p></o:p></p>
<p class="MsoNormal">As always please reach out to us with any questions and/or
concerns you may have.<o:p></o:p></p><br /><p></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-73113713484725355052022-09-12T13:31:00.000-07:002022-09-12T13:31:46.668-07:00THAT WAS FAST! Summer is officially over<p></p><p class="MsoNormal"><span style="color: black; font-size: 12pt; line-height: 107%;">No
more white shoes, white pants or dresses, right? Although we think that idea
is a bit out of date today, at the Yacht Club white pants are not de rigueur
after Labor Day.<span style="mso-spacerun: yes;"> </span>Acting as the “Officers
of the Deck” this week, we were asked to dress in formal yacht club attire
which includes white or blue shirts, grey or khaki pants and navy jackets
emblazoned with the Club Bullion.</span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7FBNSRjAVoBszJzEW4os5e1NZIHs3B4oUdVTU5SVGKKXPnqgaOFZDP8gnOCugfStsgDiR7g48fY7xjxoSYMyyqo3ZRVevaARa8H7z4UY6ejr68WCP5q3Jcbd2ll4Z4Uxi8_-5EU-QGQIJ1Y7CXva2Pyx92T4hDZ0pOUSEr-c01oAy1b6QwBxr0wdX/s750/yacht%20club%20attire.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="750" data-original-width="750" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7FBNSRjAVoBszJzEW4os5e1NZIHs3B4oUdVTU5SVGKKXPnqgaOFZDP8gnOCugfStsgDiR7g48fY7xjxoSYMyyqo3ZRVevaARa8H7z4UY6ejr68WCP5q3Jcbd2ll4Z4Uxi8_-5EU-QGQIJ1Y7CXva2Pyx92T4hDZ0pOUSEr-c01oAy1b6QwBxr0wdX/s320/yacht%20club%20attire.jpg" width="320" /></a></div><p></p><p class="MsoNormal"><i><span style="font-size: 12pt; line-height: 107%;">Now, down to business:</span></i></p>
<p class="MsoNormal"><b><span style="color: black; font-size: 12pt; line-height: 107%;">Housing Market Correction<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size: 12pt; line-height: 107%;">The experts
are all weighing in on the likelihood of a “correction” to the housing market.
Will prices come down?<span style="mso-spacerun: yes;"> </span>There is a good
deal of downward pressure on prices.<span style="mso-spacerun: yes;"> </span>We may
see a swing closer to a buyers’ market in the near future.<span style="mso-spacerun: yes;"> </span>But remember, inventory is still extremely
low.<span style="mso-spacerun: yes;"> </span>No “crash” is in sight.<span style="mso-spacerun: yes;"> </span>All the factors make it highly unlikely.<o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size: 12pt; line-height: 107%;">Rates<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size: 12pt; line-height: 107%;">Up, down and
sideways<b>. </b>Last week they hit an average of 6% which is the highest since
2008. However, a graph of average interest rates over the last 50 years in the
US shows we are still quite near the low end.<span style="mso-spacerun: yes;">
</span>It has been the sudden doubling of rates over the last 18 months that
has buyers pushing the pause button.<span style="mso-spacerun: yes;">
</span>Affordability has decreased with the rate rise.<span style="mso-spacerun: yes;"> </span>Loan applications are down significantly
which also means there is less competition out there for willing buyers.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: 12pt; line-height: 107%;">Refinance
activity particularly has slowed significantly, and is providing only 30% of
current total loan volume.<o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size: 12pt; line-height: 107%;">Conforming
Loan Limit Increases<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size: 12pt; line-height: 107%;">The conforming
loan limit, which includes both Fannie Mae and Freddie Mac loans, will rise
effective January 1st but many lenders, including APM are already accepting rate
locks for conforming loans up to a $715,000 loan amount. The actual new limit
could be higher, but most agree that $715K is a safe bet.<span style="mso-spacerun: yes;"> </span>What does this mean for borrowers?<span style="mso-spacerun: yes;"> </span>Conforming loans are easier to qualify
for! <span style="mso-spacerun: yes;"> </span>Good news all the way around<b><o:p></o:p></b></span></p>
<p class="MsoNormal"><b><span style="font-size: 12pt; line-height: 107%;">Down
Payment Assistance</span></b></p>
<p class="MsoNormal"><span style="font-size: 12pt; line-height: 107%;">No cash for
a down payment?<span style="mso-spacerun: yes;"> </span>No problem.<span style="mso-spacerun: yes;"> </span>We have programs to assist new homebuyers
with as little as $500 cash.<span style="mso-spacerun: yes;"> </span>With a combination of down payment assistance through various programs,
coupled with seller credits to offset closing costs, there is almost no cash
required to get into a home.<span style="mso-spacerun: yes;"> </span><i>Of
course there are income qualification requirements. <o:p></o:p></i></span></p><p class="MsoNormal"><span style="font-size: 12pt; line-height: 107%;">Don't hesitate to reach out to us with questions! Enjoy the transition to fall, we can't wait to cool off a bit.</span></p><br /><p></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-17103491207860903022022-08-05T13:01:00.001-07:002022-08-05T15:15:31.968-07:00HOT AUGUST NIGHTS but COOLING REAL ESTATE MARKET!<p> </p><p class="MsoNormal"><b>REAL ESTATE MARKET<o:p></o:p></b></p>
<p class="MsoNormal">The housing market continues to slow as more homes come on
market and<span style="mso-spacerun: yes;"> </span>prices fall, while rates level off and
drop somewhat, averaging around the 5% mark give or take.<span style="mso-spacerun: yes;"> </span>The average home price across the state and in Los Angeles County is $863K...and a whopping $1.25 million in Orange County—which marks a 15% increase over
the last twelve months.<span style="mso-spacerun: yes;"> </span><o:p></o:p></p>
<p class="MsoNormal"><b>OPPORTUNITY<o:p></o:p></b></p>
<p class="MsoNormal">Pending sales are down 40% from a year ago, and mortgage
applications across the country are at a low of well over 20 years.<span style="mso-spacerun: yes;"> </span>Some buyers are purportedly walking away.<span style="mso-spacerun: yes;"> </span><i><b>This does create a great opportunity for
buyers who were stymied over the last year making multiple offers without success</b></i>.<span style="mso-spacerun: yes;"> </span>So long as they can qualify with higher
rates, there is much more opportunity to negotiate and even offer less than
list price, which was unthinkable a year ago.<span style="mso-spacerun: yes;">
</span>Or, negotiate a big seller credit to closing costs or buy down the interest rate!<o:p></o:p></p>
<p class="MsoNormal"><b>WEDDED BLISS<o:p></o:p></b></p>
<p class="MsoNormal">We expect to see a total of 2.5 million weddings across the
country in 2022, which is a national record.
COVID caused many weddings to be postponed and they are all catching up
now. <i><b>This should provide more demand
for housing as the newly married couples set up house.</b></i><b> </b> New home construction has slowed quite a bit,
and new home sales are way off. Builders
are cutting prices, and offering big incentives to buy down interest rates to
help their buyers qualify. <o:p></o:p></p>
<p class="MsoNormal">We love working with first-timers to help them plan their
entry into he housing market and will show them how much they can increase their
net worth with home ownership vs. renting.<o:p></o:p></p>
<p class="MsoNormal"><b>REVERSE FINANCING<o:p></o:p></b></p>
<p class="MsoNormal">Reverse Loans continue to pick up steam as baby boomers realize
how much equity they have in their homes, and are reluctant to move, knowing prices
are higher across the country.<span style="mso-spacerun: yes;"> </span>These programs
now go down to age 55 in some cases, and loan amounts go higher up to
multi-millions, depending on property value and program selected.<span style="mso-spacerun: yes;"> </span><o:p></o:p></p>
<p class="MsoNormal"><b>SUMMER FUN<o:p></o:p></b></p>
<p class="MsoNormal">We have been enjoying the summer days and warm evenings, and
hope your summer is going smoothly.<span style="mso-spacerun: yes;"> </span>The
tales of airline delays and cancellations have taken a bit of the blush off
summer air travel.<span style="mso-spacerun: yes;"> </span>We plan to take a
drive up the state to visit relatives, camp out a couple days in the Sierra foothills,
and tour the central coast.<span style="mso-spacerun: yes;"> </span>(maybe a
little wine tasting included!) Luckily gas prices seem to be coming down a bit.
<o:p></o:p></p>
<p class="MsoNormal">Be safe and have fun!<o:p></o:p></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-55850548599749639352022-07-11T14:47:00.000-07:002022-07-11T14:47:16.777-07:00WEIRD TIMES! What's Next? And Divorce Planning<p> <b>Inflation and Recession</b></p>
<p class="MsoNormal">All the news today is about inflation, rising rates, and the
prospect of a recession.<span style="mso-spacerun: yes;"> </span>What does all
this mean for homeownership?<span style="mso-spacerun: yes;"> </span>We want to
stress that <b><i>home ownership is historically the best hedge against
inflation. </i></b><span style="mso-spacerun: yes;"> </span>Although interest
rates have returned to “normal” territory, reducing affordability for many in
comparison to the last two years, there is still a good argument for buying now
vs. waiting.<o:p></o:p></p>
<p class="MsoNormal"><u>We are NOT going to see a big drop in property values and a
wave of foreclosures</u>, recession or no recession. All homeowners since the 2008
meltdown have qualified ON PAPER for their loans, and have also seen dramatic
increases in their home value, which means they have plenty of equity.<span style="mso-spacerun: yes;"> </span>Plus, there are many many safeguards in place
since the meltdown to prevent fraud and guarantee that borrowers are
well-qualified for their mortgages.<o:p></o:p></p>
<p class="MsoNormal"><b>Although renting today for the next five years may cost a
bit less than buying a home, a homeowner will have greater net worth vis-à-vis
their equity and principal paydown during that time period</b>.<span style="mso-spacerun: yes;"> </span>And, the longer you hold real estate the
greater the net worth of the owner.<span style="mso-spacerun: yes;"> </span>This
is the best way to create wealth.<span style="mso-spacerun: yes;"> On average homeowners have 40 times the net worth of renters. </span>In
addition, there are some tax benefits to owning property. The the interest
paid for the loan and the real estate taxes are deductible up to a specific
limit.<span style="mso-spacerun: yes;"> </span><i>This deduction saves on income
taxes.</i><o:p></o:p></p>
<p class="MsoNormal">In a recession, unemployment usually rises.<span style="mso-spacerun: yes;"> </span>However, unemployment is currently so low,
even if it increases it is hard to see that it will have much impact.<span style="mso-spacerun: yes;"> </span>The technical definition of a recession is
when our nation’s Gross Domestic Product (GDP) declines for two consecutive
quarters. So far, so good.<o:p></o:p></p>
<p class="MsoNormal"><i>There is currently no bubble in real estate values as demand
remains strong.</i> The primary driver of an impending recession today is the
current rate of inflation. Rising interest rates can cause a decline in economic
activity.<span style="mso-spacerun: yes;"> </span>We will see how high the Fed
will go!<span style="mso-spacerun: yes;"> </span>If we enter recession, rates
will eventually come down to stimulate the economy.<o:p></o:p></p>
<p class="MsoNormal">In the meantime, mortgage rates have fallen in the last two
weeks.<span style="mso-spacerun: yes;"> </span>This is thought to be a reaction
to the fact that the market had already “built in” the expectation of rising
rates and inflation, and they are balancing out.<o:p></o:p></p>
<p class="MsoNormal">At its worst, a recession typically lasts for 18 months. Not
longer. Most pundits are predicting a very mild recession if it does become
reality.<span style="mso-spacerun: yes;"> </span>Bottom line:<span style="mso-spacerun: yes;"> </span>don’t wait on the sidelines!<o:p></o:p></p>
<p class="MsoNormal"><b>DIVORCE<o:p></o:p></b></p>
<p class="MsoNormal">We all know someone who is either contemplating a separation
or going through divorce.<span style="mso-spacerun: yes;"> </span>These
individuals require special planning to prepare for a refinance to “cash-out”
the departing spouse, or to prepare for the purchase of a new home.<span style="mso-spacerun: yes;"> </span>There is a great deal of strategizing
involved to achieve a successful result.<span style="mso-spacerun: yes;">
</span><o:p></o:p></p>
<p class="MsoNormal"><span style="background: white;">In the
instance where a spouse has not been working, and will be relying on spousal
support, six months of documented receipt of said support will be
required. Start the support payments early! Obtaining new employment to
qualify is a possibility, depending on prior education and work experience.</span><br />
<br />
<span style="background: white;">We have quite
a bit of experience handling these circumstances both before, during, and after
a final judgment is received. These can be tricky situations! </span><br />
<br />
<span style="background: white;">Reach out
to my team for professional guidance.</span><o:p></o:p></p>
<p class="MsoNormal"><b><o:p> </o:p></b></p>
<p class="MsoNormal"><b>DID YOU KNOW?<o:p></o:p></b></p>
<p class="MsoNormal">We have a CARD TEAM <b><i>YouTube</i></b> channel with all
kinds of great information on a wide variety of topics including how to prepare
for a home purchase;<span style="mso-spacerun: yes;"> </span>How to repair
credit;<span style="mso-spacerun: yes;"> </span>how to plan for a refinance or
home purchase during divorce; why Reverse loans are picking up in popularity;
how to hold title to real estate, and More!<span style="mso-spacerun: yes;">
</span>Here is the link to check out our channel:<span style="mso-spacerun: yes;"> </span><a href="https://www.youtube.com/channel/UCqfBGNXMrf1kvSOpMzvuKPg">The Card Team YouTube Channel</a></p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal">Happy Summer!<span style="mso-spacerun: yes;"> </span>Please
call us with any questions you may have.<o:p></o:p></p>
<p class="MsoNormal">Karen<o:p></o:p></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-80347883294620685782022-06-02T07:47:00.005-07:002022-06-02T07:47:57.035-07:00The Season of Weddings, Vacations and Home Sales!<p> <b>Sales Activity and Interest Rates</b></p>
<p class="MsoNormal">Home sales activity has slowed down with the sudden uptick
in rates combined with general market volatility.<span style="mso-spacerun: yes;"> </span>In the past, the summer months
represented the lion’s share of home sales.<span style="mso-spacerun: yes;">
</span>However, this has changed in the past five years or so.<span style="mso-spacerun: yes;"> </span>Today there is no real “sales season” as home sales remain fairly consistent year-round—at least here in California.<o:p></o:p></p>
<p class="MsoNormal">The recent rise in mortgage rates has stalled out, with
rates ranging from the mid 4’s well into the 5’s. The rate chosen by a borrower depends on many
factors to include <i>FICO score</i>, <i>loan term,</i> (a 5- or 10-yr ARM vs. a 30 year
fixed) <i>loan program,</i> (FHA, VA, Conforming or Jumbo) <i> </i><i>loan purpose</i> (purchase vs. refinance) and
<i>primary residence</i> vs. second home or investment property. <o:p></o:p></p>
<p class="MsoNormal"><u>Some market analysts believe that rates may come down a
bit.</u><u> </u> Did you know the historical “normal
rate” is 6.25%?<o:p></o:p></p>
<p class="MsoNormal">On home prices, we still have no reason to believe that
values will fall.<span style="mso-spacerun: yes;"> </span>There is simply too
much demand and not enough inventory.<span style="mso-spacerun: yes;">
</span>Flatten out a bit, possibly.<o:p></o:p></p>
<p class="MsoNormal"><b>Family Fun</b></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTn0Qbd2xp4M9UrIYaJcY0I8jV0BJr6yJTZ4-nWgVL-Egyjxwd_hyb0oFtQYlTqswKIzcm95o6TRUNCTsF8FLPg3jAz1hw2yq5JBqM_2T4KYASvL-fqYQxI3_Q8PV_uoQcye7mzYN43uyZGVHt8Gdy0pmwr0HOq91GeApOWOtwUH6dwNzyOBHhWQcq/s640/Aquarium.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="640" data-original-width="480" height="270" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTn0Qbd2xp4M9UrIYaJcY0I8jV0BJr6yJTZ4-nWgVL-Egyjxwd_hyb0oFtQYlTqswKIzcm95o6TRUNCTsF8FLPg3jAz1hw2yq5JBqM_2T4KYASvL-fqYQxI3_Q8PV_uoQcye7mzYN43uyZGVHt8Gdy0pmwr0HOq91GeApOWOtwUH6dwNzyOBHhWQcq/w203-h270/Aquarium.jpg" width="203" /></a></div><p class="MsoNormal">I was able to spend the Memorial weekend with my
grandchildren, while my partner (and daughter) Katie and her husband were in Napa
and Sonoma with friends.<span style="mso-spacerun: yes;"> </span>The kids had a
great time at the Long Beach Aquarium and were able to find and identify the
Hawaii state fish, the Humuhumunukunukuapa’a.<span style="mso-spacerun: yes;">
</span>And yes, they know how to pronounce it! </p><p class="MsoNormal">After lunch at Bubba Gumps’ we
ventured to the Los Alamitos Yacht Club to watch my grandson Theo in a sailboat
race.<span style="mso-spacerun: yes;"> </span>After two days of racing, he came
in 2<sup>nd</sup> overall!<span style="mso-spacerun: yes;"> </span>A great
achievement!<o:p></o:p></p>
<p class="MsoNormal">While Theo was racing, Steve was also in a race Saturday
overnight from Cabrillo Yacht Club in San Pedro around Catalina Island and back
to Dana Point.<span style="mso-spacerun: yes;"> </span>His boat, Chaos Theory
won first place in its class! <o:p></o:p></p>
<p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgrWZFvx2fQNBXdcisgwEt15ps8B5dAIYGl6vVyj7pIq2GRRlDaj1ZmYSTO-UQhRpIzMq2DJnOZqh6AVbS1IAo5U7czDSoH7_VE1dbYr3_T4_PRwrCI0IpA9V1IAhkKnWpkMCX4nNA516uSEsxOki5IRHmqNRlw6PmO6cT-VYIkXFaNYs-yUUt4S_oF/s2315/Picasso%20Triggerfish.jpeg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="1372" data-original-width="2315" height="154" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgrWZFvx2fQNBXdcisgwEt15ps8B5dAIYGl6vVyj7pIq2GRRlDaj1ZmYSTO-UQhRpIzMq2DJnOZqh6AVbS1IAo5U7czDSoH7_VE1dbYr3_T4_PRwrCI0IpA9V1IAhkKnWpkMCX4nNA516uSEsxOki5IRHmqNRlw6PmO6cT-VYIkXFaNYs-yUUt4S_oF/w260-h154/Picasso%20Triggerfish.jpeg" width="260" /></a></div><br />We are off for some scuba diving in Mexico.<span style="mso-spacerun: yes;"> </span>I was certified only sixteen years ago but
Steve was certified in 1970.<span style="mso-spacerun: yes;"> </span>Wow!<span style="mso-spacerun: yes;"> </span>No dive computers back then, you dove by the
Navy Dive tables and had to hand calculate your dive times/depth using the
charts. Actually although computers were coming into regular use when I was
certified, we still learned with the tables.<span style="mso-spacerun: yes;">
</span>Now we use dive computers that do all the calculations for us.<span style="mso-spacerun: yes;"> </span><span face=""Segoe UI Emoji",sans-serif" style="mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-char-type: symbol-ext; mso-hansi-font-family: Calibri; mso-hansi-theme-font: minor-latin; mso-symbol-font-family: "Segoe UI Emoji";">😊</span><o:p></o:p><p></p>
<p class="MsoNormal">Happy Summer!<span style="mso-spacerun: yes;"> </span>Please
call us with any questions you may have.<o:p></o:p></p>
<p class="MsoNormal">Karen<o:p></o:p></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-18186820333254315062022-05-10T12:45:00.000-07:002022-05-10T12:45:21.423-07:00The Sky IS NOT Falling!<p> <b>RATES</b></p>
<p class="MsoNormal">Interest rates continue to rise, but we expect them to level
out somewhat through the rest of 2022.<span style="mso-spacerun: yes;">
</span>Although the Fed just bumped up the Fed rate by .5% <i>this does not
correlate directly with mortgage rates. </i><b>Most lenders have already built
in the anticipated increase in their rates.</b><span style="mso-spacerun: yes;">
</span>Mortgage rates are generally based upon current yields (rates) of mortgage-backed
securities as traded on the open market.<span style="mso-spacerun: yes;">
</span><i>The ten-year Treasury is also considered a benchmark but does not
correlate directly to mortgage rates.</i><span style="mso-spacerun: yes;">
</span><o:p></o:p></p>
<p class="MsoNormal">ARM loans (Adjustable Rate Mortgages) are making a comeback,
particularly the 5-year ARM.<span style="mso-spacerun: yes;"> </span><i>Remember,
most homeowners don’t own the same home or loan for more than five years, due
to changing circumstances.<o:p></o:p></i></p>
<p class="MsoNormal"><b>HOME PRICES</b> <o:p></o:p></p>
<p class="MsoNormal">We want to re-emphasize that we do not anticipate a drop in
home values.<span style="mso-spacerun: yes;"> </span>We do expect a slowdown in
appreciation rates (which was over 20% countrywide last year) but there is no
reason to believe homes will drop in value.<span style="mso-spacerun: yes;">
</span>Although we may be heading into a recession in a response to the move to
reduce inflation, the worst we expect to see home appreciation drop to is
around 4.5% to 5%.<span style="mso-spacerun: yes;"> </span>Inventory of homes
for sale continue to be at record lows.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Remember, real estate is the best hedge
against inflation and a great long-term investment. And coastal California real
estate is always in demand.<o:p></o:p></p>
<p class="MsoNormal"><b>BUYING OR REFINANCING TODAY<o:p></o:p></b></p>
<p class="MsoNormal">Although the Refi boom is past us, there are still many
reasons for a refinance.<span style="mso-spacerun: yes;"> </span>Life
transitions such as divorce or death of a family member present the continued
need for home financing whether to purchase a new home or refinance an existing
one.<span style="mso-spacerun: yes;"> </span>Remodeling and home improvements are
another.<span style="mso-spacerun: yes;"> </span>We can always assist with HELOC
loans as needed for some of these situations.<o:p></o:p></p>
<p class="MsoNormal"><b>CASE STUDY<o:p></o:p></b></p>
<p class="MsoNormal">We recently closed a purchase loan for a client going
through a divorce.<span style="mso-spacerun: yes;"> </span>We worked closely
with all parties involved to assure she would qualify for the new home
purchase.<span style="mso-spacerun: yes;"> </span>Watch this brief video to
learn more:<span style="mso-spacerun: yes;"> </span><a href="https://vid.us/8youfz">CLICK HERE</a><o:p></o:p></p>
<p class="MsoNormal"><b>DID YOU KNOW???<o:p></o:p></b></p>
<p class="MsoNormal">APM was the #1 FHA lender in the state of California in
2021.<span style="mso-spacerun: yes;"> </span>Yes, that means we work with a lot
of first-time homeowners.<span style="mso-spacerun: yes;"> </span><o:p></o:p></p>
<p class="MsoNormal"><b>FUN STUFF<o:p></o:p></b></p>
<p class="MsoNormal">The Dance craze is continuing with new Cardio Funk classes
on Saturday mornings in the Dana Point Harbor.<span style="mso-spacerun: yes;">
</span>Join us at the Piazza Wellness Center at 10:00 a.m. for 90 minutes of
great cardio and a ton of fun!<span style="mso-spacerun: yes;"> </span><a href="http://www.milolevell.com/">www.milolevell.com</a> <a href="https://www.piazzawellnesscenter.com/restorative-health-and-fitness-classes-copy">Piazza Wellness Center</a><o:p></o:p></p>
<p class="MsoNormal"><b>TRAVEL<o:p></o:p></b></p>
<p class="MsoNormal">We just returned from a weekend in Ensenada for the
Newport-Ensenada sailboat race.<span style="mso-spacerun: yes;"> </span>There
were 120 boats that participated in several classes.<span style="mso-spacerun: yes;"> </span>Steve crewed on Freedom, a 55” Beneteau that
won First in Class, along with three other first place trophies.<span style="mso-spacerun: yes;"> </span>However, he missed the wine tour we had at
Casa del Piedra, in the Guadalupe Valley followed by a fantastic lunch.<span style="mso-spacerun: yes;"> </span>Fabulous time!<o:p></o:p></p>
<p class="MsoNormal">We head out in June for scuba diving in Cozumel, a Caribbean
Island off the coast of Cancun, Mexico. <o:p></o:p></p>
<p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhPiJvAgWGJz7olIP2r65c7dd1IRBCPJlnO34KMqhgM6KMZNBtCuCpyKzX9kf79MjEqjIEG-ju0dLFj-pwdoIad_OrPMv_R--QuSWLpJWiKpTdknmFclsf9eE-ToDyEMf-iRLWDUkAkJWJYz-fo4PAjZB3fHn4vt7zTNTushImYNYC3bRNCy2a1TnQD/s2487/Indigo%20Hamlet.jpeg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="1477" data-original-width="2487" height="166" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhPiJvAgWGJz7olIP2r65c7dd1IRBCPJlnO34KMqhgM6KMZNBtCuCpyKzX9kf79MjEqjIEG-ju0dLFj-pwdoIad_OrPMv_R--QuSWLpJWiKpTdknmFclsf9eE-ToDyEMf-iRLWDUkAkJWJYz-fo4PAjZB3fHn4vt7zTNTushImYNYC3bRNCy2a1TnQD/w279-h166/Indigo%20Hamlet.jpeg" width="279" /></a></div><br />Steve will do some painting while I read in the shade.<span style="mso-spacerun: yes;"> </span>Here is an example of his tropical fish.<span style="mso-spacerun: yes;"> </span>See more at <a href="https://stevesandborgart.com/">https://stevesandborgart.com/</a><span style="mso-spacerun: yes;"> </span>Shameless plug!<span style="mso-spacerun: yes;"> </span><o:p></o:p><p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b>Life is Good!</b><span style="mso-spacerun: yes;">
</span>And don’t hesitate to call us with any questions you may have.<o:p></o:p></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-74027033893809104662022-04-14T09:46:00.002-07:002022-04-14T09:46:28.218-07:00HOW HIGH CAN THEY GO?<p><b>RATES</b></p>
<p class="MsoNormal">Interest rates are up across the board, and they aren’t
coming down anytime soon.<span style="mso-spacerun: yes;"> </span>This has the
effect of eroding affordability for many prospective buyers, but it certainly
has not slowed down the market…yet. Inflation has taken off and there is no end
in sight, given current events.<span style="mso-spacerun: yes;"> </span>So, the
days of rates in the 2’s, 3’s and 4's are gone.<span style="mso-spacerun: yes;"> </span><b>Frankly we are looking at a return
to a more “normal” rate environment.</b><span style="mso-spacerun: yes;"> </span><o:p></o:p></p>
<p class="MsoNormal">In the past when rates were higher, many opted for ARM
loans. These are Adjustable Rate
Mortgages. Typically the start rates are
lower vs. a 30 year fixed loan, since they adjust to market level over an index at some point in the future. However, currently the yield curve is pretty
flat, and some think we will see an inverted yield curve which is not a good sign…and
is a precursor of a recession, <i>the elephant in the room.</i><i> </i> An inverted yield curve means that investors
see more risk in the short term vs. longer term.<o:p></o:p></p>
<p class="MsoNormal"><b>HOME PRICES</b> <o:p></o:p></p>
<p class="MsoNormal">Contrary to what many of those standing on the sidelines hope,
we are not going to see a drop in home values.<span style="mso-spacerun: yes;">
</span>We may see a slowdown in appreciation rates (over 19% countrywide last
year) but there is no reason to believe homes will drop in value.<span style="mso-spacerun: yes;"> </span>Stall out a bit, maybe.<span style="mso-spacerun: yes;"> </span>The problem is the short supply of new
housing.<span style="mso-spacerun: yes;"> </span>Builders stopped building homes
over the decade following the great recession caused by the Mortgage Meltdown,
and <u>we do not have enough housing supply</u>.<span style="mso-spacerun: yes;">
</span>This, coupled with low inventory of existing homes for sale creates
demand far greater than supply, the perfect storm for increased home prices.<span style="mso-spacerun: yes;"> </span><i>Remember, real estate is the best hedge
against inflation and a great long-term investment. And coastal California real
estate is always in demand.</i><o:p></o:p></p>
<p class="MsoNormal"><b>BUYERS TODAY<o:p></o:p></b></p>
<p class="MsoNormal">We have a number of fully ACE* approved purchase clients out
making offers right and left. <span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>In this market it is not unusual for buyers to
make three to five offers before one is accepted.<span style="mso-spacerun: yes;"> </span>We always will call the listing agent to
assure them of our client’s qualifications, and strategize with our client’s
agent regarding contingency periods, whether we should waive contingencies,
etc.<span style="mso-spacerun: yes;"> </span><o:p></o:p></p>
<p class="MsoNormal">* <i>With our ACE approval, our clients have gone through
complete underwriting of income, credit and assets.<span style="mso-spacerun: yes;"> </span>They just need to find a property!</i><o:p></o:p></p>
<p class="MsoNormal"><b>REFINANCE?<o:p></o:p></b></p>
<p class="MsoNormal">Most homeowners have a tremendous amount of equity to play
with, <i>whether to pull out cash for upgrades or remodeling, adding a new
pool, or to buy another home.<span style="mso-spacerun: yes;"> </span></i>Sometimes
we recommend a refinance of the existing first mortgage, but depending on the interest
rate of their primary mortgage, a HELOC may be the better avenue.<span style="mso-spacerun: yes;"> </span>Much depends on how much cash is desired.<o:p></o:p></p>
<p class="MsoNormal"><b>DID YOU KNOW?<span style="mso-spacerun: yes;"> </span><o:p></o:p></b></p>
<p class="MsoNormal">When I bought my first home in 1984,<b> <i><u>the average rate
was 13.88%</u></i></b><b> </b> So, no complaining! <o:p></o:p></p>
<p class="MsoNormal"><b>FUN STUFF<o:p></o:p></b></p>
<p class="MsoNormal">I am taking a series of Hip Hop classes offered through Casa
Romantica, the historical property located on the bluff above the San Clemente
pier. They offer various arts and music events open to the public.<span style="mso-spacerun: yes;"> </span>What a blast!<o:p></o:p></p>
<p class="MsoNormal">Steve and I will be scuba diving in Cozumel in June.<span style="mso-spacerun: yes;"> </span>Coz is a Caribbean island off the coast of
Cancun, Mexico.<span style="mso-spacerun: yes;"> </span>We have been there
before a few times (like more than four) and are looking forward to some great diving
and relaxation.<o:p></o:p></p>
<p class="MsoNormal"><b>Life is Good!</b><span style="mso-spacerun: yes;">
</span>And don’t hesitate to call us with any questions you may have.<o:p></o:p></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-42778468767351194502022-03-09T14:41:00.003-08:002022-03-09T14:42:21.656-08:00First COVID, Now A War in Ukraine?<p><b>RATES</b></p>
<p class="MsoNormal">When clients ask me where rates are heading (nearly every
day), I always point out that since we have an international economy today,
events around the world <b>can and do</b> affect interest rates here in the
US.<span style="mso-spacerun: yes;"> </span>Case in point, <i>the markets are
currently experiencing dramatic volatility and rates have dropped a bit after a
rapid climb in the first Q this year.</i><span style="mso-spacerun: yes;">
</span>How long will it last?<span style="mso-spacerun: yes;"> </span>No one can
guarantee they will remain on a downward trend, as they have been up and down
over the last week.<span style="mso-spacerun: yes;"> </span>The bottom line is
we can only move forward knowing that eventually rates will continue to rise.<span style="mso-spacerun: yes;"> </span>There is nothing like the thrill of receiving
three or more reprice notifications during one day!<span style="mso-spacerun: yes;"> </span>Up by .25%, down .375%. Yikes!!<o:p></o:p></p>
<p class="MsoNormal">The war is having effects in multiple areas including
interest rates;<span style="mso-spacerun: yes;"> </span>the stock market; <span style="mso-spacerun: yes;"> </span>oil prices (as we all can see at the gas pump)
and on many other consumer products, as the supply chain is further
impacted.<span style="mso-spacerun: yes;"> </span>At this juncture no one can
predict how long this will last. Only that the poor citizens of Ukraine are
feeling much worse pain.<o:p></o:p></p>
<p class="MsoNormal"><b>VALUES<o:p></o:p></b></p>
<p class="MsoNormal"><u>Home prices across the country rose last year by an
astounding 19%.</u><span style="mso-spacerun: yes;"> </span>In both Los Angeles
and Orange Counties, the median home price was <b>$950,000</b> for the month of
January.<span style="mso-spacerun: yes;"> </span>Crazy!<span style="mso-spacerun: yes;"> </span>Most homeowners have a tremendous amount of
equity to play with, <i>whether to pull out cash for upgrades or remodeling, adding
a new pool, or to buy another home.</i><span style="mso-spacerun: yes;">
</span>The problem is the short supply of new housing.<span style="mso-spacerun: yes;"> </span>I looked at a few Open Houses the past
weekend.<span style="mso-spacerun: yes;"> </span>It was so nice to actually go
to an Open House!<span style="mso-spacerun: yes;"> </span>One property was a
total teardown with incredible ocean views in the hills of San Clemente, listed
at only $1.45 million.<span style="mso-spacerun: yes;"> </span>WOW.<span style="mso-spacerun: yes;"> </span>We figured it would take at least a $2
million budget to get it to a livable condition.<o:p></o:p></p>
<p class="MsoNormal"><b>The lack of inventory is a major contributor to rising home
prices</b>.<span style="mso-spacerun: yes;"> </span>Our inventory in Southern
California is at an all-time low.<span style="mso-spacerun: yes;"> </span>That
is right, <i>I said an ALL-TIME low.</i><span style="mso-spacerun: yes;">
</span>In some areas condo values rose more quickly than did values of single-family
residences, which is an anomaly. This is likely due to higher demand at the
lower price levels pushing up those values.<o:p></o:p></p>
<p class="MsoNormal"><b>DID YOU KNOW?<span style="mso-spacerun: yes;"> </span><o:p></o:p></b></p>
<p class="MsoNormal">HUD came out with Reverse Loans for purchase with the HECM
program in 2009.<span style="mso-spacerun: yes;"> </span>I closed a home
purchase in March of 2009 with a Reverse loan, for what may have been the first
in California. <o:p></o:p></p>
<p class="MsoNormal"><b>FUN STUFF<o:p></o:p></b></p>
<p class="MsoNormal">Steve and I began golfing almost every weekend during COVID
as one of the few activities we could safely participate in.<span style="mso-spacerun: yes;"> </span>While I still don’t have a handicap, I want
to report that during our recent golf scramble with 15 couples from our yacht
club, we used several of my drives, fairway shots and putts.<span style="mso-spacerun: yes;"> </span>YESSSS!<o:p></o:p></p>
<p class="MsoNormal">Speaking of the yacht club, things are beginning to return
to normalcy with a Mardi Gras bash, weekend brunches and even prime rib night.<span style="mso-spacerun: yes;"> </span>Next up:<span style="mso-spacerun: yes;">
</span>A weekend cruise to Newport to visit with other yacht clubs.<span style="mso-spacerun: yes;"> </span>Steve enjoys crewing on a couple of
different boats for the racing events which happen most weekends.<span style="mso-spacerun: yes;"> </span>Then we have the Newport to Ensenada race,
otherwise known as N2E in April.<span style="mso-spacerun: yes;"> </span>I will
go down on a tour bus and meet the racers when they get in.<span style="mso-spacerun: yes;"> </span>You never know how long the race will take as
it all depends on the wind conditions. <o:p></o:p></p>
<p class="MsoNormal">Please remember, <b>Life is Good!</b><span style="mso-spacerun: yes;"> </span>And don’t hesitate to call us with any
questions you may have.<o:p></o:p></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0tag:blogger.com,1999:blog-2173462384801228299.post-31513331382355095032022-02-03T15:39:00.001-08:002022-02-04T10:15:54.098-08:00February 2022<p>Groundhog day has come and gone, and here in Southern
California we noted a shadow, predicting more wintry weather. At least we are not dealing with blizzards
like much of the country!</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"><b>INTEREST RATES</b><o:p></o:p></p>
<p class="MsoNormal">It is definitely feeling wintry when looking at the interest
rate climate.<span style="mso-spacerun: yes;"> </span>Rates continue to rise and
we are also facing new <i>“Loan Level Pricing Adjustments”</i> for high-balance
conforming loans (those over $647K) as well as big pricing adjustments for second
homes.<span style="mso-spacerun: yes;"> </span><o:p></o:p></p>
<p class="MsoNormal"><u>The rise in interest rates have a great effect on
affordability as you can see here:</u><o:p></o:p></p>
<p class="MsoNormal">$700,000 loan at 3.5% carries a Principal and Interest payment
of <b>$3143</b>. The same $700,000 loan at 4% carries a payment of <b>$3342</b>.<span style="mso-spacerun: yes;"> </span>This $200/month difference can make or break
it for some buyers/homeowners.<span style="mso-spacerun: yes;"> </span><i>There is
no time to delay in moving forward with a home purchase or refinance.</i><span style="mso-spacerun: yes;"> </span>As rates continue to rise it may influence
home prices/values, but for now inventory remains so low that there is no relief
in sight from rising prices.<o:p></o:p></p>
<p class="MsoNormal"><b>TAX TIME</b><o:p></o:p></p>
<p class="MsoNormal">Please have your Home Loan Officer review your draft returns
<u>prior to filing</u> if you are self-employed or own rental real estate.<span style="mso-spacerun: yes;"> </span><b>I cannot stress the importance of this
enough</b>. We frequently see tax returns for self-employed individuals as well
as corporate returns <i>where a small adjustment here or there</i> can make an
enormous difference in the income used to qualify for a home loan.<span style="mso-spacerun: yes;"> </span>If you are planning to buy or refinance in
the coming year, <b>make this a priority.</b><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p><b>PREQUAL vs. PRE-APPROVAL vs. ACE APPROVAL</b></p><p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjq8RYj4bH_KE7Hfq1-ccljWpgKm_-KBAwm5AK8yu6kVQhhKjXvVXyjg4Xg25gyE1bh4UamfxLDT0ZBOJjMYOIkR_OeiJLtzLJzhFfmFF1rCJmmTtUdsfZgjHFPmqEfFCKpA9SdGwLSvrwTEXPXrwKII6UZq99dpaWYhrdlQcQJxxl5VmHwQsY7i4Hi=s1024" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="768" data-original-width="1024" height="278" src="https://blogger.googleusercontent.com/img/a/AVvXsEjq8RYj4bH_KE7Hfq1-ccljWpgKm_-KBAwm5AK8yu6kVQhhKjXvVXyjg4Xg25gyE1bh4UamfxLDT0ZBOJjMYOIkR_OeiJLtzLJzhFfmFF1rCJmmTtUdsfZgjHFPmqEfFCKpA9SdGwLSvrwTEXPXrwKII6UZq99dpaWYhrdlQcQJxxl5VmHwQsY7i4Hi=w364-h278" width="364" /></a></div>There are a lot of misconceptions about these terms when a
buyer is making an offer to purchase a home.
<i>As Real Estate Agents know, sometimes “prequal” or “pre-approval” letters
are not worth the paper they are printed on.</i>
A “Prequal” is typically based on a phone conversation providing verbal
information on income and assets. <u>I have
yet to speak with a self-employed individual who accurately reported their
income to me verbally.</u> A “Pre-approval” is based
on income and asset documentation provided to your lender, along with a
completed loan application and a credit pull.
With these the lender can run automated underwriting – universally used
today – and provide an automated underwriting approval. <p></p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"><i><b>An ACE approval is a full underwriting approval subject to
only identifying a property and obtaining an appraisal.</b></i> Either the human
underwriter or the Artificial Intelligence underwriter, that actually reads the
documentation in the file, has reviewed everything and approved the borrower
for a specific loan amount.<span style="mso-spacerun: yes;"> </span><u>We strongly
suggest obtaining an ACE approval</u> (otherwise known in the industry as a TBD
approval) given current market conditions.<span style="mso-spacerun: yes;">
</span>It is so competitive!<span style="mso-spacerun: yes;"> </span>With an ACE
approval we can shorten contingency periods or remove them altogether, offer
shorter escrow periods, and even waive appraisal contingencies depending on the
borrower.<span style="mso-spacerun: yes;"> </span>Why did we name it the ACE approval?<span style="mso-spacerun: yes;"> </span><b>We are the CARD TEAM after all-- and hold all
the Aces!</b><o:p></o:p></p>
<p class="MsoNormal"><b>REVERSE LOANS</b><o:p></o:p></p>
<p class="MsoNormal">Baby Boomers are retiring right and left.<span style="mso-spacerun: yes;"> </span>By the year 2030 all Baby Boomers will have
turned 65. <span style="mso-spacerun: yes;"> </span>Whenever we work with clients
approaching retirement or already retired, we always show them various financing
options, to include reverse loans.<span style="mso-spacerun: yes;"> </span>These
are helpful in a number of ways, including improving monthly cash flow by
eliminating the mortgage payment;<span style="mso-spacerun: yes;"> </span>or
providing an income stream in various forms such as a line of credit or fixed
monthly distributions.<span style="mso-spacerun: yes;"> </span>They are also a useful
tool for financial planners to use in down market years (to avoid liquidating pre-tax
funds which is costly) since the income from a reverse loan is tax free.<o:p></o:p></p>
<p class="MsoNormal">There are many misconceptions still floating around about
reverse loans:<span style="mso-spacerun: yes;"> </span><o:p></o:p></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -.25in;"><!--[if !supportLists]--><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">1.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><i>The bank does not own the home </i>or take title
after the borrower passes.<span style="mso-spacerun: yes;"> </span>The home goes
to the heirs.<span style="mso-spacerun: yes;"> </span>The owner remains on title
throughout the life of the loan.<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;"><!--[if !supportLists]--><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><i>You can’t outlive your reverse loan.</i><span style="mso-spacerun: yes;"> </span>The only event of default is failure to pay
your taxes, insurance or permanent move-out.<span style="mso-spacerun: yes;">
</span>You must live in the property. The loan is non-recourse and there is no
time limit involved. <o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;"><!--[if !supportLists]--><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">3.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><i>A reverse loan does not affect Social Security
or Medicare.</i><o:p></o:p></p>
<p class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo1; text-indent: -.25in;"><!--[if !supportLists]--><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">4.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><i>Reverse loans are no more expensive than a
typical FHA loan</i>, and with jumbo reverse loans the costs are similar to a
regular refinance.<span style="mso-spacerun: yes;"> </span><o:p></o:p></p>
<p class="MsoNormal">As always, please reach out to us with any questions or
concerns.<span style="mso-spacerun: yes;"> </span>We are here to be a resource
to our clients.<o:p></o:p></p>Karen Cardhttp://www.blogger.com/profile/13112241627789889301noreply@blogger.com0