Milestones, Spring and Wedding Season!

There is so much to report, I don’t know where to begin! Let’s get business out of the way first:

MARKET UPDATE

Rates have been slowly creeping up, but still in an erratic fashion. International events, such as the recent actions of Russia in Ukraine, have had a positive effect on mortgage rates.

For now the overall outlook is positive in terms of Real Estate sales volume, steadily rising values, and mortgage rates still in the mid-4’s for most loans. Of course there are many variables that affect your rate! Some programs have loosened guidelines, and I have even seen hints of bank statements-only programs….but overall we are still working in a very conservative underwriting environment.

MILESTONES

Both Steve and I celebrated BIG birthdays (!) in grand style earlier this year. We had a lovely dinner party at our home for him in January, and hosted family and close friends.

In mid-February we took our entire family (14 in all, including my baby grandson and spouses/partners) to CocoView on Roatan in the Caribbean. www.cocoviewresort.com We had an absolutely marvelous and unforgettable time scuba diving, playing games, snorkeling and just generally relaxing. Our family flew in from Vermont (Ken) Michigan (Katie and Paul) Illinois (Courtney) Sacramento (Moselle) San Jose (David) and the rest of us all from LAX via Houston or Dallas.

You can imagine it was a logistical nightmare---but we all arrived eventually-- and we stayed in three rental homes right on the beach.

We held a ceremony one afternoon to celebrate my late mother Patricia’s life. I can honestly say this trip was the best vacation of my life. It doesn’t get any better!

DALLAS

My birthday was in March, and I had a quick trip to Dallas the week before which was filled with evenings out. I really enjoy the restaurants in Dallas! We had a birthday dinner at Al Biernat’s, an institution in Dallas. www.albiernats.com Our last evening we went to Nick and Sam’s where we were served with complimentary champagne and caviar, for my birthday. Wow! www.nick-sams.com I can’t wait to return in May…it will be nice and warm. The pool at Museum Tower is the absolute most beautiful pool in Downtown with views of the skyline.

FAMILY WEDDING!

My daughter Katie was married April 26th in Palm Springs. All in all, it was a lovely week from beginning to end, and involved non-stop parties and never-ending things to do. Her new husband Paul is from Wisconsin, so there was a large contingent of friends from Wisconsin and Michigan, where they live now, and plenty of locals from SoCal and NorCal. Katie’s bridal party were all athletes from Cal, Michigan and UCLA. Notable guests included Katie’s high school swim coach, her childhood babysitters from our old neighborhood, and lots of new and old friends and relatives who traveled a long distance to witness the event. www.vrbo.com/89766 The reception was held outdoors at the Historic Cree Estate which boasts the largest private pool in the desert (it actually has two pools and a Jacuzzi on-site).

The estate was occupied by most of the wedding party from Friday through Monday. A fun-filled time was had by all! I rented another home, the Sonny and Cher estate, with my sister and stayed there with her kids and Steve’s…we hosted a family event before the wedding. Nice digs! I love VRBO- www.vrbo.com

MUSIC

I attended a fabulous concert in Denver – Justin Timberlake or “JT”, for those of you in the know. I met my sister and daughter in Denver, where we were joined by my niece --who attends the University of Colorado, Boulder. We stayed at a “Hip” hotel walking distance to the concert. www.thecurtis.com Unfortunately when we left the venue after the concert, it was near blizzard conditions, so we couldn’t walk back, and had to fight over a car to get back. However my sister is very persistent, and convinced a cabbie he HAD to take us! We all lived to tell the tale!

I hadn’t been in Denver for years and the downtown is experiencing a resurgence of new restaurants, wine bars, galleries, etc. All in all, the 20/20 Experience concert was the best I can remember ever, and I love concerts! Do see it if you have the chance. The sheer variety of genres JT can handle is amazing, and his dancing had me trying the same moves on the way home (not a good idea in the snow!!!)

Life is great and I feel very lucky! Here I am with my two handsome sons. Next up: Cozumel in June...
Take Care!

HAPPY NEW YEAR

As I write this the end of 2013 is here. This year has brought about many changes and I’d like to update you on those affecting the Mortgage business, as well as my personal updates.

The State of Mortgage Lending

Rates fluctuated up and down within a fairly narrow range all year, but were steadily rising since May. We now see most mortgage rates in the mid-to high 4’s depending on loan term, loan amount, and property occupancy.
The biggest change coming up for 2014 is the new requirements vis-à-vis Frank Dodd for “Qualified Mortgages” which are loans with specific characteristics leading to a high probability of payback. Meaning, goodbye to most interest-only loans and hello to strict income qualifying ratios, and fully amortizing loans.

Purchase business continued to pick up this year in the face of rising home values and still relatively low interest rates. Next year should prove to show us more of the same, with rates steadily rising.

The Family

Steve and I bought a home in September, in Dana Point. We have a nice ocean view from the hills above Dana Point Harbor. We moved into the home in October after painting and installing new flooring (www.MacFlooringServices.com) but we still have a lot to do, to include Kitchen and bathroom upgrades. My friends tell me Rome wasn’t built in a day and it will just take time! We’ve had fun buying new (and some consignment) furniture. My favorite is our Restoration Hardware dining table of salvaged boatwood. It’s different!

Unfortunately we also lost my mother in October after a prolonged illness. At the age of 88, she had a long and full life and is dearly missed. She was my best friend, and best sounding board for many many years. Sort of encyclopedic, she was a great source of information. I’ve been receiving her New Yorker Magazine and now I know how she kept up on so much! She read voraciously and was in the middle of one of Proust’s novels.

Happier notes:

My son Kenny is working at his Alma Mater Marlboro College in Vermont as an Admissions Counselor and enjoying his work which allows him some travel (yes even here to the West Coast) on recruiting trips. We got to see him here in mid-October.

My daughter Katie and her Paul are planning their wedding in April in Palm Springs which will involve a mass exodus for many of his relatives (over 150) from Wisconsin. It should be a great party and beautiful wedding. She continues to coach water polo at a local high school and for her own club, and is now teaching Barre classes at the local Pure Barre.

Last but not least, my eldest son Drew had a great season of fishing this year on his sport fisher The Pacific Queen, www.pacific-queen.com and currently has his boat in dry dock in Ventura for winter repairs. He and Mary Grace are very busy with their my grandson Theo, who turned one on December 16th. What a charmer he is!

Thanksgiving was quiet since all our kids were celebrating elsewhere. We had a quiet evening at my favorite Wine Bistro. www.winebistrodp.com We were joined by Steve’s sister Kerry and her husband Chuck.

DALLAS

Steve and I were in Dallas over Halloween, and also had a fun trip to Dallas for his office Christmas party this month. I was prepared for the worst in terms of weather, but it was actually warm – in the 70’s – and lovely during my visit. I was able to complete my dreaded continuing education on mortgage fraud and regulations, so all in all it was a very successful trip. Dinners out included CBD Provisions, the new restaurant in The Joule www.thejouledallas.com where we enjoyed a pig’s head(!) Hmmm, not sure I’d recommend it for the faint of heart…or stomach! It was interesting…

We also enjoyed a great meal at Nick and Sam’s in Uptown. I had their foie gras, which is now illegal in California, but happily readily available in Texas. www.nick-sams.com This is a quintessential Uptown steakhouse with a great bar and chef. I bumped into some out of town visitors – well, they bumped into me, and I knew they weren’t from Dallas since they didn’t apologize. It’s true! Dallasites are extremely polite people! All in all a wonderful time. Here is the view from Steve’s condo:

I wish all of you a fabulous NEW YEAR!

Almost Spring...Can't Wait!

RATE AND PROGRAM UPDATES

We’ve seen many changes to the markets since the election, not the least of which is the stock market has been improving….and bond prices are down, which means interest rates are rising. We all agree that the bottom of the rate cycle has passed. That said, rates are still very attractive, and there are lots of people out there who haven’t taken advantage of a refinance.

Rates for most 30-year loans remain in the range of the mid 3’s to low 4’s, and there are lower rates for some products (15 years, ARMS and FHA/VA loans). Speaking of FHA financing, there are many changes coming up in the short term. Mortgage insurance charges are increasing.
On the bright side, new programs for conventional loans are making it easier to purchase homes with lower down payments...if you can find a property! It is definitely a seller’s market with little inventory, and rising home prices.

SHORT SALES, BK’s and FORECLOSURES: When are you eligible for a new loan?

Short Sale/Deed in lieu:
2 years with 20% down; 4 years with 10% down –conventional loans
3 years FHA financing (unless no late payments prior to transfer)
Foreclosure:
3 years FHA, 7 years conventional
Bankruptcy:
2 years FHA, 4 years conventional

Updates to MY WORLD

CHRISTMAS

The holidays were especially wonderful for me since I had all my children together for Christmas, INLCUDING my brand new grandson, Theo, who wasn’t yet a week old.


Katie and her beau Paul flew in from Michigan, Kenny was home (for GOOD!) from Berlin, and Drew and MaryGrace arrived from San Diego with baby Theo in tow. Mom was with us, along with all three of Steve’s boys, so it was a real family affair. The hit of the evening –other than Theo--were two battery-powered Shark balloons ready for battle.


We celebrated New Years at a local restaurant, the Dana Point Wine Bistro, and had a fabulous meal with best friends while dancing the night away! www.winebistrodp.com

DALLAS

I was in Dallas in February for a grand opening party for Museum Tower. I was able to tour the building for the first time, and view the model homes, which were beautiful. The party hosted over 500 who were served food and beverages at a number of stations throughout the building. We were treated to music in three separate locations, and one location had a dance floor!

The biggest hit with the party-goers was the 38th floor – for its expansive views of Dallas and environs—but my favorite locale was the pool deck , which was quite frankly luxury defined, at least for me. Great views, beautiful pool, two separate fireplace seating areas, bocce ball court, Jacuzzi, interior bar seating area….all with the backdrop of downtown Dallas. I inquired as to whether they allowed camping on the pool area lawn, but was politely declined. Darn! I told them I’d just shower in the gym, which is on the same level, but no go! Check it out at www.museumtowerdallas.com

As sales activity has been picking up, so has Steve’s time spent in Dallas. The weather there is pretty strange and changeable, but the people are really friendly and fun. My favorite dance class ever is at the T. Boone Pickens YMCA—downtown—on Thursdays. I always try to make the class when I am visiting. Great combination of hip hop and Zumba, with the emphasis on hip hop. Meals at Truluck’s and Stephan Pyles were great as usual, but my favorite was Stampede 66, a NEW Stephan Pyles restaurant. www.stampede66.com Fun, casual atmosphere and CRAZY Fried green tomatoes.

CATALYST NEWS

We ended 2012 with a tad over $600 million in loans funded, and I was the #3 Loan Officer. I’ve been officially initiated into the “Chairman’s Club” with the Top Four, and am waiting to receive my gold-embossed business cards. Nice! Keep the loans coming!

NEXT UP

Scuba diving in the Turks and Caicos Islands in March….

HOT TIME, SUMMER IN THE CITY…MARKET AND TRAVEL UPDATES

RATES...FIRST AND FOREMOST

Interest rates have moved off their record lows of the summer (and ever, for that matter) and are hovering slightly higher after news of stabilizing events in the EU as well as improved economic indicators here in the US.

Rates are subsequently up around .25% which brings them back to the levels of late June. I will not predict whether they will rise or fall in the near future since I, along with almost everyone else, thought we’d seen the bottom much earlier this year.

As I am fond of telling my clients, I threw away my crystal ball some time ago….there are just too many factors affecting rates today in our global economy.
Home values appear to be rising slightly in some markets, and there is no clear indication of the legendary “shadow inventory” of properties either owned by banks or not yet foreclosed…so your guess is as good as mine on the future of home prices!

VACATIONS AND FUN STUFF

In mid-June –Fathers’ Day weekend-- we went to our favorite camping spot on the bluff over the ocean in El Capitan where Steve painted some nice landscapes while I read. We kayaked in the ocean (alas no dolphin sightings except from shore) and took some bike rides.

One day we drove from our campsite, where it was at around 60 degrees, inland to the Los Padres National Forest (on the way to the San Ynez Valley) for a bike ride. When we arrived there, the temp was almost 100. No kidding! To cool off we went swimming in the river which was a hoot (yes we brought our swimsuits!)
Favorite eats were lunch at Brophy Brothers, dinner at Beachside Bar & Café in Goleta and Holdren’s Steakhouse.

Next up – In early July we drove to Napa Valley for some wine tasting and to visit close friends who live in Calistoga. We were accompanied by my daughter Katie and her boyfriend Paul, who had both flown out from Ann Arbor.

Favorite wineries were Rombauer, Frank Family, Clos Pegase and Cuvaison. We had a wonderful dinner out on our last night with our friends (including a local chef, and a winemaker) at the SolBar in the Solage resort.

http://www.solagecalistoga.com/solbar

Amazing food, accompanied by special bottles we brought in, plus a magnum of Zinfandel. I’ve become a Zin lover since I first tasted the Rombauer Zins. WOW! We partied on the 4th at our friends’ home… with an expansive view of the Valley from the hill above Calistoga, where we watched the fireworks at the State Fairgrounds below us. All in all a great time!

On the 6th we drove through San Francisco down to Carmel for a wedding. We had the great fortune to stay at the Mission Ranch in Carmel overlooking a vast meadow and Carmel Bay. http://www.missionranchcarmel.com/ The wedding party had booked about half the rooms at the Ranch where the rehearsal dinner was held, and I had the honor of creating the playlist and “dj-ing” the event. It was a blast and I’ve found my next calling for the future, after I become a professional dancer/Zumba instructor! HA!

The morning of the wedding Steve, Katie, Paul and I rode our bikes from our hotel through Carmel to 17 mile drive. It was beautiful and might I say somewhat strenuous (I’d forgotten how many hills there are). We returned just in time to grab a bite at the Rio Grill. http://www.riogrill.com I was super impressed with the menu and beer and wine list, and wished we’d had more time but we had to do a quick change to make it to the wedding, which was a full mass at the Mission Basilica. The artwork inside was impressive…and OLD! The wedding was awesome…afterwards we had a great party in Carmel Valley.

The next day, while in recovery, we rested and took a walk down to the beach below us. For dinner Steve and I browsed around Carmel Village and found ourselves at a restaurant named Grasings which was absolutely the best food we’d had in days (hmmm since the SolBar?) I highly recommend dining there next time you are in Carmel. http://www.grasings.com/ The bartender entertained us with stories of deep sea fishing and free diving off the Santa Cruz, Monterey and Marin Coasts. Fun and fabulous food!

Katie and Paul flew home Sunday, we drove home the following day, and I found I’d gained five pounds which I have had to work very hard to take off. AHHHHH! The joys of aging!

FINALLY Steve and I took his boys to Mammoth for a family vacation in August for a week where we stayed in a condo at Snow Creek. It was very lovely, beautiful views, wonderful warm weather, great biking, hiking and fishing. We ate our own freshly caught trout (from June Lake) and were skunked at both Lake Mary and Lake George. The hike up above Lake George to Crystal Lake offered wonderful views of the valley down past Mammoth to the Owens River Gorge.

One day we rented a pontoon boat on June Lake and lazed around, swimming, fishing and just chatting. These pontoon boats have apparently become very popular in the mountain lakes as well as SUP’s (Stand Up Paddle boards for the uninitiated.)

Home at last….until the next trip. I hope your summer has been an enjoyable and eventful as mine! Please call me if I can help out with your home financing needs.

Karen

Summertime Mortgage Update; Cayman Island Review and Fam News!

May arrived and departed with financial upset across Europe—which has returned rates to ever new record lows . Rates continue to hover in the high 2’s to the low 4’s depending, as always, on occupancy type, loan program, FICO score, property type, and amount of points and/or upfront costs either paid in cash or financed through escrow.

Even if you refinanced last year you may be eligible for a no point refinance that will provide a substantial annual savings. Purchase activity has picked up dramatically and we are seeing bidding wars erupt, with much lower inventory available than in the past few years. From March to May the inventories shrunk rather dramatically. Some report that there is still “hidden inventory” the banks are holding, and others report that except for the extremely depressed market areas, there is no hidden inventory at all and a return to normal market sales.

What does this all mean? Prices have most likely bottomed out along with rates. Great time to buy if you have the stomach for it. Refinance if you can grab a no point no cost refinance and save enough to make the pain and suffering worth it, without substantially extending your loan term. Now for the fun part…

Cayman Islands

Steve and I had a fabulous ten day trip to the Caymans to scuba dive. We flew through Miami to Grand Cayman and hopped a puddle jumper to Little Cayman Island. The resort was perfect and we dove every day at the Bloody Bay Wall which is famous in diving journals as one of the best. www.littlecayman.com Didn’t see many sharks (only nurse sharks) but saw lots of turtles, fish of all types and sizes, and had generally great diving on the trip. My only complaint was not enough dancing… but what can I say, I never get enough dancing. The food was varied and tasty, the sun was always out, weather hovered in the 80’s most of the time and fun was had by all. Little Cayman is essentially a desert island ten miles long and one mile wide and inhabited by many iguanas with right of way on the roads. Most of the guests and staff were from Europe, Iceland, Australia, Indo, S. America, and the Eastern US. No Californians. It is a REMOTE place. ‘Nough said.










DALLAS

We quickly returned to the real world by attending events in Dallas for the annual Art Fair, and the Dallas Museum of Art Gala Ball. These Dallas folks know how to party, AND love their art. The Art Fair was pretty amazing. My favorite exhibit was a Cernuda Arte out of Florida, specializing in Cuban artists that were bright and colorful. I also loved an exhibit of photographs made up of littler photos of celebs. Hard to explain but highly evocative. They were all pretty crazy. For instance, a photo of Michael Jackson made up of little photos of Elizabeth Taylor. You’d have to see it to believe it.



I’m loving Dallas and even have an office to work in when I visit Steve (Yes I work when I’m there.) but I was a little disturbed recently when I finished reading The Big Rich, about the rise and fall of Texas oil families. It was an eye-opener for me, and a very interesting period in the history of our country…

Family Wedding and other news!

My nephew was married over Memorial Weekend in Fresno . The whole family was there, minus only a few since my eldest had to work and HE AND MARY GRACE ARE EXPECTING! I will be a grandmother in December and can’t wait! Kenny spent a month here to visit for the wedding. It was the first time I’d seen him since Drew’s wedding last September, and we had a great visit. He is back in Berlin now to complete his Master’s program there and he should be finished in September.



In the meantime my nephew John married his Paige in a beautiful outdoor garden setting on May 27th. Great fun was had by all, and congrats to the happy couple! This photo is of my daughter Katie, her boyfriend Paul, my niece Page, and my son Kenny.

That’s all for now…more to come soon! Hoping for a warm summer at the beach, and off to Santa Barbara to camp, with kayak and bikes for the weekend-- at our favorite spot in the El Capitan campground.

Interest Rate Update...Marathons and Calistoga!

Rates have hit record lows again! I feel like a broken record saying the same thing, over and over… Suffice it to say rates have hovered at or near record lows the last few months and at this point it appears only an economic recovery to spur inflation will cause them to rise. Here goes:

For 30-yr fixed-rate loans:
3.875% (under $417,000)
4.125% (over $417,000 up to $625,000)
4.75% (jumbo over $625,000)
For 5-yr ARM loans:
2.75% (under $417,000)
3.25% (over $417,000 including jumbo)

Rates vary depending on Loan-to-value, FICO scores, loan purpose , occupancy, and points.

MARATHONS and NORCAL

I flew to the Bay Area to root for my daughter Katie as she ran a marathon in Santa Rosa the last weekend of August. She finished in a very respectable time under 4 hours, but missed her goal time to qualify for Boston. She’d experienced a quad pull earlier in the week, so was happy with her race.

We enjoyed exploring downtown Santa Rosa, but left for the drive over the hill to Calistoga after she recovered --for a little wine tasting.
Calistoga is one of our favorite places to relax and walk. Monday we visited Rombauer for chardonnay and zinfandel tastings, and then drove to the Frank Family Vineyards’ for a picnic and more tastings. Frank Family offers fine chardonnays, as well as champagnes. Both are family-owned and operated with some of the best wines in the valley.

Our dinner Monday was at Jolē, the farm-to-table restaurant located in the lobby of the historic Mt. View Hotel. www.jolerestaurant.com The food was outrageous! We brought in our leftover wines to enjoy with dinner (you can’t take them with you) and they were gracious about letting us drink our wines with their food. Their heirloom tomato salad was fabulous.
We also recommend Brannen’s Grill, named for the founder of Calistoga. www.brannensgrill.com

Although we’ve stayed at the Mt. View in the past, we elected to stay at the recently renovated Stephenson Manor, a Best Western, which was more economical and offered larger and more comfortable accommodations.

SEPTEMBER

The end of the summer has brought us thunderstorms, hailstorms, The Dana Pt. Tall Ships Festival, football…and weddings!
My eldest son Drew is marrying the lovely and talented MaryGrace this Saturday, so I will tell more about that event next time. I will see all three of my children together for the first time in almost two years this weekend. Kenny (best man) flies in from Spain, and Katie (bridesmaid) from Ann Arbor. Never a dull moment!

Mortgage Update...and GO BLUE News

Home loan rates have been fairly stable the last few weeks, ranging from the mid-4’s to low 5’s depending on a number of specific loan factors. Rates are definitely expected to rise by the end of this month due to the termination of the government’s buying program of mortgage-backed securities. This program basically generates demand for Fannie Mae and Freddie Mac pooled mortgage securities, which in turn, maintains rates at a lower level. Once the buying stops, most experts expect demand to wane, and prices to drop, thereby causing a rise in interest rates for home loans.

Also be aware that the deadline for the Tax Credit for homebuyers is rapidly approaching – to qualify you must be under contract by April 30th and close by June 30th. This program is widely credited for the current housing demand.

The University of Michigan Women’s Water Polo Team was here in Orange County last weekend for the annual UCI Invitational Water Polo Tournament. The event is one of the premier tournaments of the women’s collegiate polo season. This year, the Michigan Wolverines, currently ranked 8th in the nation, finished the tournament in 8th place. After a strong start, they lost their leading scorer to an injury and struggled in their remaining games. Michigan has completed the season in the top ten the last two years; and participated in the NCAA championships four of the last eight years.

Oh, did I forget to mention my daughter Katie is the Assistant Coach? Katie, who captained the Cal Bears her junior and senior years at Berkeley, is in her third season coaching at Michigan…and bought a condo in Ann Arbor last year. Yes, she earned the first-time homebuyer tax credit. She’s adjusted to the cold and snow nicely. But I remember the first time she called me and said, “Mom, it is snowing, and I fishtailed twice in the parking lot when I left to go out tonight…so I decided to stay home.” Good call.

Summers are especially nice in Ann Arbor, which has a thriving downtown filled with the typical college town restaurants, galleries, bars and boutiques! Every spring they host a parade of outrageous giant-size papier-mâché puppet creations called the FestiFools parade. I attended last year with Katie. What a blast! This year it is April 11th.


The puppets are created by students and community members who perform on downtown’s State Street, to the back beat of GROOVE, a percussion ensemble from the University. These huge handmade puppets represent everything from crazy dancing eggplants to dinosaurs and famous people. FestiFools is all about the three F’s: Fun, Free and Foolish! www.festifools.org

Ann Arbor is also home to the annual Top of the Park Music Festival, which runs for three weeks at the end of June, and an Art Fair in mid-July. The Art Fair attracts over 500,000 visitors annually, and was founded in 1960. It has been recognized as a top art fair in the nation many times…I hope to get back to visit one of their fun events this year.