MARKET UPDATE AND REVERSE LOAN INFO

Interest Rates have begun to rise again, after a drop last month. However, we are still better off than in the 1st Q of this year. The economy is improving, slowly but surely! You can still find rates in the 3’s if you are willing to go for an ARM, or a Government loan (FHA or VA) and depending on your loan size, credit scores, loan purpose, etc. etc. Most programs have rates in the low to mid-4’s. Realistically we are still very near the bottom of the rate cycle. Purchase specials for jumbo loans are lower than most conventional loan programs.

I just concluded a rent vs. buy analysis for clients, and determined they were better off, especially on an after-tax basis, to buy vs. trying to find a rental. The rental market is just crazy, and availability is scarce!

Reverse Loans are gaining in market acceptance. Borrowers are finally understanding that they still own the home, can sell it or refinance if they wish. The biggest benefit of these loans is the ability to have a line of credit allowing draws as needed for emergencies or major expenses (a roof, a car, etc.) The unused portion of the line available increases or grows like an investment, so over time there is more credit available. I’ve run these scenarios for clients as well as investment professionals, who can see that in ten years the credit line will nearly double.

This is a very useful retirement planning tool. A client age 63 with a line of credit beginning at $320,000 and home value of $636,000 or higher will have a line of credit available in the amount of $573,000 in ten years, assuming no draws during the first ten years, and a home free and clear. This is essentially a return of over $550,000 on initial costs (investment) of $11,000 in upfront costs (including escrow, title, and Mortgage insurance.) Not bad!

Home Remodeling is on the rise, especially here in the OC. Homeowners have seen tremendous appreciation since the recession, and many are taking advantage of their increased equity to pull cash out for a makeover. Kitchens and bathrooms top the list. Landscape upgrades are another popular item. A recent study shows that 15% of California homeowners plan to remodel in the next year. We recently remodeled our bathrooms--and what a difference! We LOVE them!

Family and Travel News!

Paso Robles is really beautiful, and it reminds us of Napa/Sonoma over 30 years ago. We went for a long weekend in April with dear friends, and had a blast visiting wineries (not too many in one day!!) hiking, picnicking and dining. Our favorites were Daou for a gorgeous setting, but we had extra-special tastings and treatment at Opolo, www.opolo.com Epoch www.epochwines.com and Four Lanterns. www.fourlanternswinery.com

We threw in a drive to the coast to visit a couple of dive bars in Cayucos.

We dined at Artisan (highly rated) but our favorite…after two days of wine tasting…was Fish Gaucho. www.fishgaucho.com They offered great high-end Mexican food, heavy on the seafood. Highly recommended.

Our trip took us along the coastal route through Santa Barbara coming and going, so of course we stopped at Brophy Bros in the SB Harbor on the way up, and at Beachside Bar-Café on the way back, in Isla Vista. Lots of good eating and fine wines!

In June we headed out to Bermuda for the first leg of an 18 day trip. We watched two days of racing for the America’s Cup; went scuba diving one day (too rough after that for diving) and did lots of sunning, swimming and touring. Bermuda is beautiful but extremely expensive. We quickly learned we were better off to pick up dinner “to go” at Mr. Chicken, or order pizza at our lodging (St. George’s Club) than to pay top dollar for mostly mediocre food. We still had a fabulous time! Too bad we lost the Cup to New Zealand in the finals, but we have faith America will be back!

Next leg we flew to Tortola (British Virgin Islands) to pick up our 48 foot Catamaran and set out on our week-long sailing adventure with two other couples. These vessels are basically floating condos with sails, with four bedrooms and private baths/showers. I highly recommend this trip although you might want to hire a captain if you aren’t comfortable sailing on your own. We had a few minor issues with malfunctions (mostly of the mechanical type) but all-in-all it was smooth sailing and/or motoring, depending on the winds and our direction to the next port.

We stopped at different bays every night and moored all but one night. We ventured onto land for dinner all but one evening; danced, listened to music, and generally had a wonderful time. The most exciting moments centered around our dingy rides to shore (entrance and exit can be tricky) but this provided for many laughs and a few unexpected swims. Identities withheld.

We had three days of very good diving and were very happy with the sites and the dive masters. But it was a pain to lug all the scuba equipment around from one locale to the next.
Favorite spots: Marina Caye, Cane Garden Bay, Bitter End and Norman Island. Also the Baths are a must-see.

Finally we flew to San Juan, Puerto Rico for two nights at El Convento, a wonderful hotel in Old Town San Juan. You can’t really go wrong anywhere here in Old Town. Most of the restaurants offer Tapas. The food was amazing—best of our trip—and very reasonable. The Hotel is highly recommended as the place to stay, and also very reasonably priced with outstanding service. We loved the colors, the history, the music, the rain, and the food. I want to return!

NEXT UP:
My daughter and granddaughter are visiting for a few weeks this month and I can’t wait. Baby Kai is almost 10 months, and moving fast. I need to purchase a play yard to keep her under wraps while they are here. Can’t wait!

Steve and I continue to be active in the Dana Point Yacht Club. He's started racing, and I've joined the Race Committee to help with scoring (not an easy task!) We've made so many new friends and enjoy our time there.

I love hearing about your adventures too, so please write me! Keep in touch!

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 Rates below 4% - and Post-Holiday Updates

Interest rates are once again at record lows. Rates on most loan products are below 4% with NO POINTS and for shorter term loans (5-yr fixed) below 3%. For loans over $417,000 and up to $625,000 rates are slightly higher-- unless you are willing to use FHA financing.

FHA rates are even lower although they command a hefty monthly mortgage insurance premium. There are some exceptions to this rule though: for 15 year fixed loans below 80% loan-to value there is no MI – and loan amounts go up to $729,000. To give you an idea of interest rates a $700,000 loan amount at 80% LTV would command a rate of 3.25% with no monthly mortgage insurance and NO points, with a substantial credit to closing costs.

It's a great time to buy with prices so low!

Fall and Winter News

The last quarter of the year was amazingly busy for me with my eldest son’s wedding, coupled with near-record low rates and lots of business (good news), then Thanksgiving followed by two hospitalizations for my mother in December (bad news), and holiday activities.

First things first: the wedding was beautiful and wondrous. Photos can be viewed at http://greenweddingshoes.com/diy-bohemian-picnic-wedding-mary-grace-drew /

This was the first time I was together with my three children and all the extended family at one time in years. Pictured below are Kenny, MaryGrace, Drew and Katie. A great time was had by all!

After Thanksgiving my mother was ill, but has recovered after two times in hospital, the second for an entire week which was pretty stressful. She was home before Christmas and spent the holiday with me. She is recovering and we expect to have her with us for many years to come. The upside was I was able to spend a lot of quality time with my beautiful loving sister Katie. Here is mom at her Birthday dinner:

Steve and I celebrated New Year’s Eve with close friends at a dinner dance at the Balboa Yacht Club and danced all night – practically! They do put on a fabulous party.

Steve is still actively biking and I’m practicing my dance moves in jazz class and Zumba. Steve continues to commute to Dallas for his position as VP of Marketing and Sales of Museum Tower, and has obtained an apartment there, so I’ll be visiting him more often. The Tower has topped out and sales activity is brisk – for those of you in need of a high-rise downtown condo in the $800 PSF range! The property is located next door to the Dallas Museum of Art and the Nasher Sculpture garden in the Arts District. The performing arts venues and the Symphony Hall are just down the block.

Steve and I still enjoy sunsets from our own balcony --and also from Sunset’s Bar and Grill on the Beach below us in Capo Beach. If you haven’t visited it yet, put it on your list. http://sunsetsbar.com The owners have opened a new Sunset’s across from the pier in San Clemente, and word is out that they have taken over ownership of The Renaissance-Dana Point which is a big positive.

Next on our agenda is a week-end trip to Santa Barbara for Steve’s birthday, and then our big splurge, a diving trip to the Cayman Islands at the end of March. We can’t wait!

Thanksgiving in Cabo Pulmo, Mexico!

We ventured to the eastern tip of Baja California (Sea of Cortez) for a quiet getaway the week before Thanksgiving. We planned to scuba dive and just relax -- and that is exactly what we got! Warm, sunny weather, (80-ish days, 70-ish nights) with a bit of breeze toward the end of the week, and lots of quiet was just what the doctor ordered. The only music we heard—except for restaurant radios—was from our battery -operated IHome Ipod player! We pretty much lived in our swimsuits.

We had been warned we could run into trouble finding our way after dark, and to watch for cows on the road. We arrived without mishap around 9:00 p.m. to be greeted by an entirely dark village. Everything rolls up around that time. This was a Friday night! Directions to our home were left in an envelope at the door to the office. No keys allowed here! We literally locked up nothing all week!

Cabo Pulmo is about an hour and a half drive from the airport at San Jose Del Cabo, but seems worlds away from the activity center of Cabo San Lucas. Pulmo is located on the East Cape facing the Sea of Cortez. The last 6 miles of the trek are on a dirt road. You can take a dirt road the entire way from San Jose along the coast, but it takes much longer and isn’t wise in the dark.

Cabo Pulmo offers the only coral reef located in the Sea of Cortez. Jacques Cousteau called this the aquarium of the world, and for good reason! We dove three days, two-tanks each. We saw more fish, in sheer numbers, than anywhere else we’ve been diving. Although we missed out on seeing whale sharks, we saw huge fish balls and schools of jacks, that went on and on, forever. We saw sea turtles, and dozens of different kinds of local tropical fish. This is a fabulous place to dive and fish. They primarily use panga boats for fishing, and for diving as well. Back entry into the water only!

Steve spent much of his time painting his favorite fish, while I read a couple of books lazing in the sun. We generally just relaxed. Other than our diving, we snorkeled daily at the reef right off the beach, took a hike in the local hills, and drove up the coast to Los Barriles one afternoon.

This is not a destination for those seeking a lot of day- or night-time “action” although we had great dinners out every evening at one of the four different restaurants available. We ate a ton of fresh fish…either grilled, pan fried in oil and garlic, or in tacos. We met some interesting ex-pats who live in the area full-time, and chatted up the new divemaster over a couple of meals (and margaritas, beer and wine of course).

Be sure to shop in San Jose before you get on the road, as supplies are virtually non-existent in Cabo Pulmo (except for restaurants) and groceries are limited in La Riberia-- which is the closest “city.” On the plus side, there are no vendors on the beach, so you can have the beach essentially to yourself! We stayed in a “casita” in the village which was a large one-room home with full kitchen, bathroom, and best of all, a private outdoor shower. We had two patios, one at ground level and one at roof top level with a view of the hills and peek-a-boo water view. Our patio home was entirely private, surrounded by a hedge. We were a one to two minute walk to the beach, down a path. There are a few beachfront rentals in the village, although there are other rentals in the general vicinity that are completely isolated both on and off the shore.

I’d love to return with a group and rent a compound, or larger private home, of which there are a few in the immediate area. Viva la Mexico!

Beautiful Buena Ventura

I visited downtown Ventura last weekend. Much to my surprise, it was a happening place! I was amazed at the number and variety of restaurants, clubs, and activities.

Although we were in Ventura earlier this year in March, on that trip we drove directly to the Harbor on a Friday evening. We had dinner at a restaurant, and slept on our dive boat in preparation for an early morning departure for scuba diving the Channel Islands. Our favorite Santa Barbara seafood restaurant, Brophy Bros, has a restaurant located there. The Harbor offers a great selection of other fun eateries and bars.

That Saturday we dove around Anacapa Island (the closest to Ventura) at three different locations. The most exciting was on the west side of the island, where we swam with a large group of sea lions, who followed us around and played with us.

During our visit last weekend—primarily for a high school football game—we stayed at a motel walking distance to the beach and historic pier, and a block to the downtown area.

After an early dinner on the pier to watch a spectacular sunset, we headed out to the game. Our first stop back in town, around 10:00 p.m., was the Bombay Bar & Grill which we had been advised was a dancing “hotspot.” Expecting to see a crowd of 20- and 30-somethings, we were greeted by a large group of all ages, dancing to a live band playing current top 40’s. No cover charge to enter! There was plenty of room at the bar, which was nice, and the bartender kindly held my purse while dancing. In the back of the restaurant, the club scene with a DJ was just getting started. Definitely a younger set there—and the action starts later.

Next we headed out on California towards Main Street, and crossed to another restaurant where we heard live music playing. On Main Street itself, we were greeted by more music on all sides. It felt like a battle of the bands. We heard everything from Jazz and Reggae to Rock and Hip Hop. I can’t wait to go back and explore some more!