Dog Days of Summer, Rates and Your Home Equity

 It has been an unquestionably hot summer so far, with no end in sight! Days at the beach or in the pool have provided some of the only respite—along with a cold beverage, perhaps a rosé, a crisp dry white, or an Aperol Spritz. And when I get going on wine, I tend to get a little carried away. 😊

Speaking of wine, we're about to head up to Paso Robles for a little wine tasting, and I'm looking forward to discovering some new Picpouls and Albariños. Yes, Paso has finally caught up and realized its climate is quite friendly to these crisp, mineral-driven whites that are growing in popularity.

Okay, back to business!

The Real Estate Market

The real estate market isn't nearly as hot as the weather.

Mortgage rates have remained stubbornly elevated, and recent geopolitical uncertainty has added another layer of volatility. Meanwhile, affordability continues to be one of the biggest concerns I hear from buyers.

The questions I'm hearing most often are:

"Should I buy now or wait?"

And from homeowners:

"How can I access some of my equity without giving up my low-rate first mortgage?"

Fortunately, there are strategies for both.

Want Your Equity? Meet the HELOC and HELOAN

Homeowners who locked in those wonderful low mortgage rates a few years ago are understandably reluctant to refinance their entire mortgage just to access their equity.

That's where a second mortgage may come in.

A HELOC (Home Equity Line of Credit) is generally a variable-rate line of credit. You can draw funds as needed, repay them, and—during the draw period—typically access the available line again. This can be particularly useful for remodeling projects, unexpected expenses, or situations where you don't need all the money at once.

A HELOAN (Home Equity Loan) is different. It is generally a fixed-rate second mortgage with the proceeds funded at closing. You make payments on that loan separately from your existing first mortgage.

And today's second-mortgage programs aren't necessarily one-size-fits-all.

We have access to some very competitive and interesting options, including:

• Second mortgages for homeowners who want to preserve a low-rate first mortgage
• DSCR options for certain rental properties
• Reverse mortgage second-lien solutions in qualifying circumstances
• Loan amounts that can reach as high as $4 million, depending on the program and borrower qualifications

Which one makes sense? That depends entirely on what you're trying to accomplish.

Buyers: Let's Solve the PAYMENT Problem

Affordability is absolutely a challenge right now, but that doesn't necessarily mean you should sit on the sidelines.

Rather than focusing exclusively on the interest rate, I like to look at the entire monthly housing expense and ask:

What can we do to make this payment work?

There may be more options than you think.

A seller-paid 2-1 buydown, for example, can substantially reduce the buyer's interest rate and payment during the first two years of the mortgage.

Gift funds from a family member can help with the down payment or closing costs and may reduce the amount that needs to be financed.

And remember, you don't necessarily need 20% down to buy a home. Depending on the loan program and borrower qualifications, down payments can be as low as 3% or 3.5%—and eligible VA borrowers may purchase with 0% down.

Every situation is different. That's where good planning really matters.

Before deciding that you can't afford to buy—or that you need to wait for rates to fall—let's run the numbers and see what's actually possible.

A Real-Life Example

I'm currently working with a family that provides a perfect example of how these strategies can come together.

The parents have built substantial equity in their home, and now they'd like to use some of that equity to help their adult son purchase his first home.

We're looking at the entire picture: how much equity to access, the best way to access it, how much the parents should contribute, and how to structure the son's financing so that his new monthly payment remains comfortable.

I love these transactions because we're not simply arranging a mortgage. We're helping one generation use the wealth they've created through homeownership to give the next generation a head start.

If you've ever thought about helping a child or grandchild purchase a home, let's talk. There may be several ways to structure it.

Don't Forget About 1031 Exchanges

One last reminder for my real estate investors:

Before you sell an investment property, talk to us about a 1031 exchange.

A properly structured 1031 exchange may allow you to defer capital gains taxes by exchanging qualifying investment real estate for another qualifying property.

We have excellent resources for both 1031 exchange advice and accommodation, and timing is critical. The conversation should happen before the sale closes, not afterward.

If you're considering selling an investment property, please call me early in the process so we can connect you with the appropriate professionals.

As Always...

Whether you're thinking about buying, refinancing, accessing equity, helping your children purchase their first home, or simply wondering what your options are in today's market, I'm always happy to talk through the numbers.

Sometimes the answer is a new loan.

Sometimes it's keeping exactly what you have.

The important thing is knowing the difference.

Enjoy the rest of your summer—and I'll report back on the Paso Albariños! 🍷

Karen Card
The Card Team

First COVID, Now A War in Ukraine?

RATES

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 can and do affect interest rates here in the US.   Case in point, the markets are currently experiencing dramatic volatility and rates have dropped a bit after a rapid climb in the first Q this year.  How long will it last?  No one can guarantee they will remain on a downward trend, as they have been up and down over the last week.  The bottom line is we can only move forward knowing that eventually rates will continue to rise.  There is nothing like the thrill of receiving three or more reprice notifications during one day!  Up by .25%, down .375%. Yikes!!

The war is having effects in multiple areas including interest rates;  the stock market;  oil prices (as we all can see at the gas pump) and on many other consumer products, as the supply chain is further impacted.   At this juncture no one can predict how long this will last. Only that the poor citizens of Ukraine are feeling much worse pain.

VALUES

Home prices across the country rose last year by an astounding 19%.  In both Los Angeles and Orange Counties, the median home price was $950,000 for the month of January.  Crazy!  Most homeowners have a tremendous amount of equity to play with, whether to pull out cash for upgrades or remodeling, adding a new pool, or to buy another home.  The problem is the short supply of new housing.  I looked at a few Open Houses the past weekend.  It was so nice to actually go to an Open House!   One property was a total teardown with incredible ocean views in the hills of San Clemente, listed at only $1.45 million.  WOW.  We figured it would take at least a $2 million budget to get it to a livable condition.

The lack of inventory is a major contributor to rising home prices.  Our inventory in Southern California is at an all-time low.  That is right, I said an ALL-TIME low.  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.

DID YOU KNOW? 

HUD came out with Reverse Loans for purchase with the HECM program in 2009.  I closed a home purchase in March of 2009 with a Reverse loan, for what may have been the first in California.

FUN STUFF

Steve and I began golfing almost every weekend during COVID as one of the few activities we could safely participate in.  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.  YESSSS!

Speaking of the yacht club, things are beginning to return to normalcy with a Mardi Gras bash, weekend brunches and even prime rib night.  Next up:  A weekend cruise to Newport to visit with other yacht clubs.   Steve enjoys crewing on a couple of different boats for the racing events which happen most weekends.  Then we have the Newport to Ensenada race, otherwise known as N2E in April.  I will go down on a tour bus and meet the racers when they get in.  You never know how long the race will take as it all depends on the wind conditions.

Please remember, Life is Good!  And don’t hesitate to call us with any questions you may have.

ELECTION MANIA, BREXIT AND TRAVEL UPDATES!

The upcoming election is certainly overwhelming our media! But recently Brexit has taken front stage. Currently interest rates are trending down, following the Fed decision to hold on any further rate increases for now, slowing employment and economic indicators, and the flight to security of US bonds, with Britain’s vote to exit the EU.

Home prices are reaching and in some cases exceeding the levels of the last decade, so this makes for a great time to refinance, especially for many who were unable to do so a few years ago. I’m seeing lots of debt consolidation refinances as well as refinances to drop rates. Yes, there are still plenty of people out there with rates in the 5’s and higher, who could benefit from a refinance. Anyone with a rate over 4.5% can likely benefit from current rates.

TRAVELS

Steve and I returned to Cocoview for the fourth time in February. We don’t like it there much! This is a dive resort on the island of Roatan in Honduras, in the western Caribbean. www.cocoviewresort.com. We stay in a private home down the beach from the main buildings for more privacy and quiet. Here is sunset from our home.

As usual the diving was great, and the sand fleas were biting (Steve). We met some fun, interesting people including a family of four from Houston, and a couple from Seattle. Dive boats leave the dock twice a day for four boat dives daily, and shore diving is unlimited. We were disappointed my daughter and her husband were unable to join us due to the Zika threat. For good reason, she is expecting in September! Yahoo, exciting!

MUSEUM TOWER

We flew in and out of Dallas, with a few days spent in Dallas each way, making the travel to Roatan much easier. The Tower continues to perform very well with the building over 60% sold. Dallas is always fun! And, the Tower has a great pool!

We stayed another weekend in Dallas in April for a wedding, and rented bikes one day for a ride around White Rock Lake, home to the Dallas Arboretum and Botanical Gardens. The lake is filled with sailboats and surrounded by beautiful homes. There are hiking and biking trails all the way around it, and some leading away and into other park areas. You could literally ride for hours.
We usually try to fit in a walk on the Katy Trail when we are in town, including a stop at the Ice House, a lively open air bar/restaurant. www.katyicehouse.com Great beer and burgers!

GRADUATION AND MORE WEDDINGS

May brought the graduation of David, Steve’s youngest son, from San Jose State with a B.S. in International Business.

WOW! We stayed in an Airbnb in Sunnyvale in a very cool new downtown environment in the Heritage District just off Murphy Avenue. We dined our first evening at the Steakhouse in the Fairmont, which was a real treat with grandparents, parents and kids in attendance. Friday evening we had a quiet dinner at Roberto’s Cantina on Murphy. Highly recommended! www.robertoscantina.net

After the grad festivities we flew to LA for a wedding at the Four Seasons Beverly Hills. Quite an event from beginning to end! Champagne upon arrival, fabulous food, dancing and fun. And, brunch the next morning. We were completely spoiled.

IN MEMORIAL

We celebrated Susan Green in mid-March for her birthday, and watched her ashes spread over the mountains above Palm Springs. It was a lovely, moving event. Then, last week we celebrated the life of Christy Christian Motter, the daughter of very dear friends and lost to us far too early.

Steve and I continue to enjoy Dana Point and all it has to offer: beaches, the harbor, our Yacht Club, hiking and biking paths nearby, wine tasting events, etc. Next we are off to Lake Tahoe for the 4th!

Hoping you are all happy, healthy and have a safe 4th of July!

FALL MORTGAGE UPDATES AND TRAVEL NEWS

RATES: We started out 2014 with the highest rates we’ve seen in years, and then hit the lows of the year at the end of May. Since then mortgage rates have continued to exhibit some volatility but within a fairly narrow range. We are still looking at rates in the low to mid-4’s --and no points-- for most loans. Shorter term loans and ARMs are still in the 3’s…of course rental properties and higher loan-to-values loans still command higher rates.
Home values seem to have leveled off and even dropped in some locations. That makes this is a great time to buy! Market activity slows anyway this time of year, so better than ever for buyers to take advantage of the softening home prices and still comparatively low rates.

JUMBOS: Some very interesting developments in the last few months have included LOWER rates for jumbo sized loans over $625,500 (the conforming jumbo loan limit) and announcements about new jumbo reverse loans for homes valued over $700,000 with loan amounts up to $2,000,000. This is big news because we know that the majority of Americans have most of their savings in their home. In California with higher home values the FHA reverse products are limited to a max of $625,500 and oftentimes aren’t enough to pay off a current lien. These new jumbo reverse loans are ”proprietary,” meaning they are private and not government loans. So , no mortgage insurance and, they offer fixed rates!

REVERSES:
I am a big believer in reverse mortgages for some seniors. I had placed one on my mother’s home, and it was instrumental in enabling her to remain in her home with caregiver assistance, until she passed away. We paid off the reverse loan, and now hold the home as an investment property. So, the heirs have many options to pay off the reverse, or sell the property and retain the equity.

TRAVEL AND SUMMER:

CATALINA-

I had a weekend girl’s trip to celebrate two birthdays (BIG ones!) in May. We hit the weather perfectly, enjoyed some great meals out, and had a great time at the Descanso Beach Club. The Club is located walking distance from town, and offers a bar/restaurant as well as private seating on lounges, and cabanas. They have expert masseuses on-site as well as other activities like the zip-line and climbing wall. Although the beach is rocky, swimming and snorkeling are a blast for all ages. We stayed at Hamilton Cove with Killer views of the coastline. Every time I stay here I feel as though I’m in a Mediterranean resort. We lunched at the Bluewater Avalon www.bluewatergrill.com on the harbor, and dined at Steve’s Steakhouse www.stevessteakhouse.com and the Avalon Grille. Of course we had a drink (or two) at Luau Larry’s while we were at it. Always a hoot, especially with the funny straw hats they hand out!

Our last afternoon we stopped at CC Gallagher www.ccgallagher.com on the way back to the ferry, and discovered a killer red wine called Troublemaker. We are still enjoying it, a lovely red blend with Syrah, Zin and another unpronounceable red grape.

Cozumel & Scuba Diving
Steve and I took a week off to dive in Cozumel at the end of June. I had been once, ten years ago, and before I was certified, but Steve hadn’t been there for something like 25 years… so it was all new to us. We stayed at a large “resort” with a couple of pools, restaurants, disco etc…and a lot of people along with some fascinating iguanas.

I wouldn’t recommend the resort, although the food was great and the bars served great drinks! It just didn’t feel authentic to us. And, the worst thing was that the disco didn’t get going until after 10:00 and when you dive, you just can’t stay up that late! YIKES! I guess I’m getting old! Anyway, the diving was pretty awful too. We realized we’ve been completely spoiled by small resorts catering to divers with nice boats (hmm like CocoView on Roatan, Bohio on Grand Turk and the Little Cayman resort). We won’t be going back soon, at least not to the Occidental. The diving was scary, since the currents were pretty crazy and STRONG, and one day we lost one of our divers on our boat. No kidding. But, we found him about 200 yards away.
During some of the dives, I felt a little like superman literally flying over the coral reefs. Not the usual way to view life under water! Conditions on the dive boats were less than acceptable. Well, I don’t need to belabor this. We did rest on this trip, and Steve painted some new fish. Over and out!

DALLAS

I am such a Dallasite, I can’t believe it. I actually look forward to visiting, and being wined and dined in the evenings. They have more restaurants per capita than any other metropolitan area in the US. I love to read at the pool at Museum Tower, visit the museums, and of course I get some work in too. Steve had to move condos since the one he occupied sold, so now we are in a new unit. My last visit in June we discovered a new restaurant by Stephan Pyles, www.sansalvaje.com with live music on the patio that we could hear from our place. So, we walked over, danced and thoroughly enjoyed ourselves. The same band, Latin Fire, is going to be playing at a party here this week…maybe a little salsa dancing will be involved!

CALI COAST and SANTA YNEZ WINE TASTING

Next, I met Katie and her friend Rebecca in San Jose after the USA Water Polo Jr. Olympics, where they were coaching their teams from Ann Arbor. First, we drove down the coast on highway one, through Big Sur and stayed two nights in Solvang for easy access to the Santa Ynez Valley. The girls wanted to do some wine tasting! We also made a stop at the Monterey Bay Aquarium which was a blast. Haven’t been there in years! Our favorite winery in Santa Ynez was Foxen Hill www.foxenvinyard.com where we had a picnic of wine and cheese. Just beautiful country! We also visited Zaca Mesa and had some fab wines with dinner at Succulent Café. www.succulentcafe.com The waiter photo-bombed us! He was too funny! Of course we had two bottles with dinner but luckily we walked home. The charcuterie plate was to die for. Our second night we ate at Root 246, www.root-246.com on their outdoor patio, but I have to say we preferred the Succulent Café.

SACRAMENTO
We visited my son Kenny and his girlfriend Moselle in September. He followed Moselle there, and he is working with a lobbying group for affordable housing in California. We had a great time, and some fabulous meals at Ella’s Dining Room www.elladiningroomandbar.com and a tapas restaurant , Aioli Bodega. www.aiolibodega.com Both highly recommended but pricey. We rented bikes on Saturday and toured the downtown area, all along the river and through the college campus and residential areas. I must say I have a new outlook on Sacramento. The downtown is filled with activity, day and night, for people of all ages. We stayed at The Citizen Hotel which is in a historic building a block from the Capitol. On Sunday we rented SUP’s at the college Aquatics center on the American River. What a blast! And, the weather cooperated and was very pleasant!

WATERMAN’S www.watermansharborrestaurantdp.com
We are excited to have a brand new seafood restaurant in the Harbor in Dana Point. Waterman’s is owned by the same group that operates Sunset’s Bar and Grill in Capo Beach, and Stillwater’s in Dana Point. Located on the Harbor with open air patio dining on both floors, it offers great views but even better food. Fish tacos, ceviche, chowder, poke, everything is really tasty. And, they have an oyster bar…don’t miss it! It is adjacent to the Catalina Express pier.

Happy Fall! Go Team! I love football season, even when my team loses.

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!

ARM loans - An Alternative

Steve and I just closed escrow on a home in Dana Point. We bought a condo-- due to location and view—and the amenities it affords us.

I don’t usually recommend condos, due to the control you hand over the HOA on a variety of issues. Then again, an HOA that is well-structured and managed can take a lot of headaches off the homeowner! We’ve just completed painting and are in process of installing new flooring (www.macflooringservices.com) before we move in this weekend. It has been quite an adventure so far!

Why am I telling you this? We selected a 5-year arm. Here's why...

Most of my clients prefer 30- or 15-year fixed rate financing, due to the opportunity to lock-in record low rates that will be fixed for the life of the loan. But as I always tell everyone, you need to consider the whole financial picture when selecting the loan program that is right for you. It all depends on how long you intend to remain in the home, as well as other factors.

In our case, we decided on a five-year ARM with a slightly lower rate than the fixed rate programs (that are still low!) as this better suits us.

So while 30- and 15-year fixed rate loans will remain the preferred financing approach for most people, don’t rule an ARM or even interest-only financing, if there is a reason this type of loan might better fit your personal financial needs.

Here's a photo of the before picture with yellow paint and brown carpet. Updates to follow!~

SEPTEMBER -- FALL AND FOOTBALL!

MORTGAGE UPDATE:

My last update in May signaled the end of our record low interest rates. Rates jumped up rather rapidly by 1% and have drifted higher since, with a few minor ups and downs. When clients complain about rates that aren’t in the 3’s I remind them that we are still very near the bottom of the rate cycle over the last 30 years +.

Currently we are looking at rates in the mid-4’s to low 5’s for 30 year fixed programs, depending on various factors. You can still get a rate in the 3’s if you are interested in an ARM. The spectre of inflation, coupled with expectations of the end of Quantitative Easing, was the signal to the market to move, and it did!

We’ve seen property prices rise this year along with rising rates. The good news is, your property is worth a lot more than last year. However, the seller’s market has slowed in the last month, and is transitioning toward a buyer’s market today.

SUMMER:

Maybe it’s my age, but it passed so quickly!

I went on the Rock Creek Pack Station Horse Drive in June. It is an endurance event as always! This time I was accompanied by four friends, and they weren’t quite prepared for what was to come. Luckily, they all rallied and had a great time. For the uninitiated, it involves moving stock (horses and mules) up the Owens River Valley from Independence to Rock Creek Lake above Bishop over four days and covering around 100 miles. It is hot, dusty, hard work, hot, dusty, long, and dusty. Did I say it is HOT and DUSTY? It is also a lot of fun. This year, for the first time, I was assigned to ride a mule and I was unsure whether it was a prize or punishment. Actually, the mule was great! The other “guests” were from all over the US, and mostly expert riders. I highly recommend it if you want to try something different! www.rockcreekpackstation.com I have known the station owner Craig London my entire life and have ridden with them often over the years. My first time on a horse-- at age 3, was with Craig-- and our mothers. Here I am:

WEDDING SEASON:

July saw us travelling to two weddings. We visited friends in Calistoga for the 4th, and then drove over to Nevada City for the first wedding. While in Napa, we drove over the hill to Aetna Springs (Pope Valley) www.aetnasprings.com/#/home/ and went swimming in their swimming hole, which was a treat. By way of explanation the Pope Valley is adjacent to Napa Valley to the east, and grapes grown there carry the appellation of Napa which is worth a lot of status and $$. We had dinner one night at the SolBar at the Solage, always a favorite. www.solagecalistoga.com/solbar

Later in the month we spent a long weekend in Santa Barbara for Steve’s niece’s wedding, which was quite an extravaganza, at a private estate in Montecito. For his trip we rented a home (www.VRBO.com) in the Mesa area of Santa Barbara with an ocean view. Nice! Both weddings were beautiful and memorable events. Here is Steve’s niece Emily and her husband, Justin. Beautiful couple!

My daughter announced her engagement to her beau Paul in July, making it even more exciting! I had an early hint during their visit with us in June.

August was relatively quiet with only one vacation to Mammoth with Steve’s boys. We fished, hiked and generally relaxed. I LOVE Mammoth in the summertime. We hiked up the Rock Creek Canyon, and one day we rented a pontoon boat on June lake and lazed around, trying to catch fish without success. However we drank a lot of beer!
We had a quick family get-together in August, for my mother’s party, and here is a pic of my me, my sis, my daughter and my niece Page together:

CATALINA:

We just returned from a weekend jaunt to Catalina at Two Harbors. We went over on a 44’ sailboat Friday morning (motoring) and returned Sunday.

The highlights were: snorkeling at Emerald Bay, running out of quarters at the pay showers on-shore (hmmm mid-shower) dancing at the Harbor Reef Saloon Saturday night, www.visitcatalinaisland.com/twoHarbors/Dining.php and attempting to sail in what felt like gale force winds for about fifteen minutes, during which time I was sure we were all going to perish. Luckily we didn’t. Figuring out which lines went where was complicated!

Oh, and did I forget to mention we fouled our mooring line (actually the sand line got tangled in our engine prop the last night) and we had to have the Harbor Patrol, a boat diver AND Vessel Assist all help us to remove ourselves from the harbor. What can I say, it was an adventure! Can’t wait to go again!

I also had a visit to Dallas squeezed in there… fun as always. I still swear by Stampede 66, the Stephan Pyle restaurant. www.stampede66.com This time we took the building’s driver for a tour of McKinney before getting dropped at the restaurant. Very stylish! I could get used to it! The walk home was only a few blocks through the new Klyde Warren Park. The Park offers exercise classes most weeknights (Yoga, Zumba, Cross-training) and has free concerts too!

I want to get in a plug for my favorite new restaurant in Dana Point, the Wine Bistro Dana Point. www.winebistrodp.com The Wine Bistro is next door to Hennessey’s and is owned by Paul Hennessey. I had the pleasure of meeting him at their First Anniversary Party this summer. I try to visit every Monday night for their special $20 three-course food and wine tasting. A great deal, and always fun and interesting food. Chef Nael does a great job.

After all this, I am tired and I just want to stay home for a while. I hope your summer was fun and eventful too!
Now I’m glad it’s football season and we can watch TV on Saturdays…

MAY SHOWERS AND SPRING FLOWERS

Interest Rate update:

Rates hit record lows yet again the first of May but backed off slightly on Friday May 3rd. With home values rising rather rapidly this year, many people are now able to refinance who were prohibited in the past -- due to their home value; and many on FHA loans with Mortgage Insurance are now able to refinance into a conventional loan without MI.
On the home sale and purchase front, recent reports suggest that reluctant sellers may start coming off the sidelines now that prices have risen. It’s still a seller’s market, but with more inventory coming on the market, it is still a great time to buy…but you MUST be pre-approved before getting out to look. Many programs have loosened guidelines, but it still takes a mountain of paperwork to obtain loan approval.

TRAVEL AND FAMILY NEWS

Turks and Caicos

Steve and I took a vacation to Grand Turk in March. We stayed at the Bohio Dive Resort and had a fabulous time. We did two morning dives every day, and the diving was equal to the best we’ve had. Afternoons were spent reading, painting (in Steve’s case) and generally just relaxing. The food was spectacular, and we met some really fun people staying at the resort. Dive resorts don’t fit the typical “resort” profile but this one came pretty darn close…great service, inventive cocktails, and wonderful food. www.bohioresort.com They had live entertainment three nights we were there and it was definitely the “happening” place on the island.

Diving: Lots of turtles, nurse sharks and various other Caribbean tropical fish...there was always a lot to see. On our last day we chased a whale in our dive boat, and jumped into the water with him briefly, until he swam away. Spectacular! The island is tiny, and although there is a sizable native population, there is nothing to do or see, other than under the water. The end!

Palm Springs

I’ve had a couple of visits to Palm Springs this spring, both around birthday celebrations. The first in early March was a quick weekend jaunt. Dinner at the Steakhouse at the Spa Resort Casino was the highlight ….other than my company, Susan Green. We met with some of her extended family (Italians!) and they call Palm Springs their second home. What can I say? We danced and visited with my son Kenny who is home FOR GOOD from Europe. Thank Goodness!

I also visited Palm Springs with a girl’s group in April. We rented a home in the “Movie Colony” that was spectacular, and had dinner at the Workshop—pretty groovy—and Melvyn’s, an old Palm Springs tradition. Dinner at Melvyn’s was an elegant affaire, just like the old days. The piano bar there is a crack-up. www.Inglesideinn.com
Here is the link for the Workshop: http://workshoppalmsprings.com

Our last evening we ate early at Lulu’s and watched the PS Follies’ which was a pretty extraordinary event. I mean these really old chicks—in their late 50’s 60’s and 70’s—are the showgirls, and they really look and act the part. They are amazing looking! Just to be clear here I AM in that age group, but these showgirls put me to shame. Plastic surgery is very fashionable in the desert areas. (!)

Whatever you do, if you attend, don’t sit in the front row as the MC likes to pick on people sitting there. WATCH OUT! He’s pretty funny but a bit caustic.

DALLAS AGAIN

I always enjoy my visits to Dallas. This was my last visit to Steve’s loft in The Beat Lofts on Southside Dallas since he’s moved into the building where he is selling…Museum Tower. We did a lot of shopping for furniture for the new place. It was a bit painful (Chinese water torture?) since he takes a long time to decide, and I’m a finger-snapper. Oh well, it was fun anyway. I am very excited to visit him next time in the Tower since the pool level is sooo cool… I’d be willing to camp out on the lawn there. Of course, they wouldn’t allow it, but it would be fun!

This is a picture of me with two models--painted like statues--for a fundraising event held at the Tower:

The views from the Tower are amazing, and it is right next to the new downtown park named the Klyde Warren Park where they hold daily classes like Yoga, Zumba, and have all kinds of activities including weekend concerts, etc. A real people meeting place in a downtown area.

There are many restaurants within walking distance, not to mention the museums and theatres. This visit we enjoyed meals at Stephan Pyles, Stampede 66 www.stampede66.com and the Village Marquee Grill and Bar http://marqueegrill.com in Highland Park. We were pretty cool. haha I must say that Dallas has more great restaurants than anywhere I’ve ever been, save San Francisco and New York City.

My favorite evening included cocktails at the NYLO Rooftop Bar www.nylohotels.com, and nightcaps at Cedars Social. www.thecedarssocial.com Just real people go there! Always fun! Their champagne/vodka cocktail is the Best.

Lest you think I am vacating when in Dallas, think again. I have a work station in Steve’s office so I am completely functional with my computer, and their scanner/printer, etc. I am doing mortgage business while they are selling homes. I can’t lend in Texas unfortunately, since I am not licensed in Texas. Most of the buyers are all-cash buyers, or have their own bank loans.

KENTON

My prodigal son has returned to the USA for good...and is seeking employment. While completing his portfiolo and resume, he's taken some time off to climb in Joshua Tree. He completed a first ascent of a new route there. This is a photo of him in Yosemite and is almost as scary as the Joshua route photos...which I can't seem to upload here. Ready, GULP!

Last, but Not Least

My baby grandson Theo is growing by leaps and bounds, and I need to visit more often. Last time I was with him was in February. He’s already almost five months old and a real looker. Here he is:


Best wishes to all!

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….

Fall Mortgage News

Fall has finally arrived…after a long,hot summer which I thoroughly enjoyed!

MARKET UPDATE

We watched rates continue to drop throughout the year, and they hit bottom right around October 1st. Currently rates have moved just off their lows, but realistically are still extremely attractive whether you are buying or refinancing. As I write this the election is tomorrow, so we are unsure what effect the result may have on rates… only time will tell. They have to start marching up at some point though.

Loan approval is certainly attainable for most borrowers, as long as your credit is relatively good (no FICO scores in the 500’s please and over 680 is better, 740 is considered perfect) AND if you can document adequate income to qualify for a loan within standard debt-to-income ratios which are still running around 45%. There are some exceptions to this figure (HARP loans, or FHA loans will both go higher in the debt ratios) You just need to have the constitution to survive the process of handing over lots more paperwork than in the past, including divorce documents, trust documents, explanations for deposits to your accounts, etc….

I have handled more than a few transactions recently for clients who started out working with their bank or current lender, only to find out more than 60 days into the process that it was going to take another 30 to 60 days. I closed a purchase for a client who was told by the BofA that they could not close in less than 45 days. I had the loan approved in 14 days from the date of application. Whatever you do, don’t work with a big bank, use a mortgage banker or broker. The banks are too big to be efficient and are overwhelmed. My average refinance closes in 30 days depending on how responsive the client is to requests for documentation.

Boys & Girls Club of Tustin

As some of you may know, I was a member of the Board for the B&G Club in Tustin, and had the privilege of serving as President. I am deeply committed to these clubs that provide such a valuable service to children all over the US. I have heard more than one alum state that the club “saved my life.” Here in Tustin, our club provide free transportation to schools for homeless children among many other programs. Yes, they pick up children from shelters and hotels, and taxi them to school programs. I have made a commitment to donate $100 for every loan I close in the community served by our Tustin club and invite any refinance or purchase loans to that end. Plus, Catalyst is underwriting their newsletters!

NOW, FOR THE FUN STUFF and BABIES

MEXICO

In September I visited San Jose del Cabo for a quick trip with two girlfriends, for R&R. We stayed at the Hilton in a timeshare (2 bedrooms, 3 bathrooms) which was a lovely top-notch property with fabulous service.

Highlights were:

A visit to Mango Deck on El Medano, buying “stuff” from the beach vendors;

Dinner at Agua, the fine dining restaurant at the One and Only Palmilla… I hadn’t been there since 1978! Service and food were both outrageously good;

Dinner at my new favorite farm-to-table restaurant in San Jose, Flora Farms. Check out their website www.flora-farms.com/ or you can find them on Facebook.

DALLAS

I’ve had a couple of quick weekend trips to Dallas with Steve. I was luckily able to locate a Trojan Club there for game watching on Saturdays.

The new NYLO Dallas South Side hotel www.facebook.com/NYLODallasSouthSide?fref=ts just opened less than a block from Steve’s loft. It offers a fun bar and dining scene on the building roof- top complete with swimming pool , great views of downtown (the same as from Steve’s balcony) and great music. My last visit they had a fabulous jazz trio playing in the lobby bar and we danced.

Favorite eats this trip: Trulucks http://trulucks.com/pages/dallas-texas for seafood, and The Cedars Social, for down home eclectic cooking and marvelous cocktails. www.thecedarssocial.com/index.php

We attended opening events at the new Klyde Warren Park, which is built over a freeway, and bridges the Dallas Arts District to Uptown. The park is a true community gathering place offering a playground for children, a dog park, a reading area complete with periodicals and books, a game area, and a stage for productions and events. They have yoga classes, Zumba and more. Opening night had a free concert with great music including Trombone Shorty from New Orleans.

The weather was pretty strange, it went from 85 high to a 35 low over my four day visit. That’s Dallas!

THE BIG HOUSE

Steve and I visited my daughter Katie in Ann Arbor in October. We were able to watch a football game – for Homecoming-- in The Big House. The weather was a bit on the cold side and it rained most of the day! We were pretty bundled up, so we kept warm but maybe a little wet.

Best eats: Vinology on Main Street, with great wine selections www.vinowinebars.net/vinology/index.html and Pacific Rim for the Asian influence. http://pacificrimbykana.com/

Katie introduced me to her newest exercise class: Pure Barre, which was extremely difficult and left me hobbling around for a week or so afterwards. Yikes!

She is coaching water polo at a local high school and planning to begin a Master’s in Education program in the spring.

We also visited new friends we met in the Cayman Islands at their lovely home on a lake in West Bloomfield, and enjoyed a sunset cocktail cruise on their pontoon boat. It was a blast!

BABIES!

My grand niece Kentyn was born a few weeks ago in Fresno to my nephew John and his wife Paige. I can’t wait to see her at Thanksgiving. My son Drew and his wife MaryGrace are expecting to welcome baby Theodore, my very own grandson, on or about December 4th, and she is looking Very Ready! Finally, I got to hold my new 2nd cousin Benjamin at the shower for MaryGrace. He is beautiful, and it provided me a little early practice.

GREENHOUSE

Kenny's greenhouse has been completed, which he'd begun building at Marlboro College before he left for Germany. He spent many months and a lot of hard work to obtain permits, funding, donations, pouring the foundation etc. before he left for Germany. The building is beautiful and the College held a grand opening ceremony in October. He was present from Berlin via Skype. Here is a photo of the completed Greenhouse. Beautiful!

The holidays are quickly going to be upon us. Early Happy Thanksgiving to all!

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.

A Sea Change in Rates & Spring Updates

Interest Rate Update

We have seen the bottom of the rate cycle, and it appears to be past us. Improving economic indicators coupled with increased stock market activity have pushed bond and mortgage rates higher the past week. Rates are still very attractive, but not quite at the 50 year record low mark. My recommendation is don’t wait if you have considered a refinance or purchase this year.

For 30 year fixed rate loans we are seeing 4.125% to 4.25% depending on loan size, for primary residence purchase or refinance. Remember that rates are all subject to FICO score, loan-to-value, property type and occupancy.

FHA and VA rates are still lower than those shown above, but as of the end of March FHA mortgage insurance premiums are rising AGAIN so time is of the essence.

SPRING IS HERE!

The last few months have been amazingly busy. I’ve been to Dallas with Steve to see his new pied-á-terre with a fabulous view of downtown. He stays there 3 to 4 days during the week, but continues to commute home for weekends. We had the opportunity to see the new musical version of Giant, based on the Edna Ferber novel about the transition in Texas from cattle ranching to the oil industry, with plenty of social commentary.

Business is booming at Museum Tower, his luxury condo development. The first models will be opening soon. I haven’t personally inspected the building since I don’t like open construction elevators…I’m holding out for the interior elevators to open up for my tour!

We ventured up to Napa Valley in late January for a surprise birthday event at Calistoga Ranch for a dear friend. We stayed “under cover” at their guest house—with sweeping views of the Valley—during the weekend, and feel like it is our special getaway! Of course we indulged in the best food and wines the valley has to offer, thanks to our hosts and friends.

Next, my mother stayed with us for six weeks while her master bathroom was being remodeled…and it is amazing! She is now dubbing it her “taj mahal” and it is complete with marble counter top and bench in the walk-in shower, and mosaic designs in the floor and shower tiles. A real showcase, and she’s selling tickets for entry. Any takers?

¡Viva México! I took a quick trip to Baja with my wonderful sister. We stayed with friends who live outside San José near El Puerto Cabo in a private community. Their home is fabulous with panoramic ocean views and amazing art pieces, and I felt like I was living the life of the rich and famous! We had massages en suite one day, dinner "in" with a professional chef, and took dune buggies down to a deserted beach on the East Cape called Shipwreck. One day we took their boat (ahem yacht) out for some sport fishing (no luck) but had a blast nonetheless. I returned home rested and with a slight sun rash. I think my high point of the visit was dinner at “the Farm,” a farm-to-table restaurant featuring organic produce grown on-site. The food, wine and music were all outstanding, and I can’t wait to return. Read about it at http://www.flora-farms.com/ or like them on Facebook. They also sell fresh produce, freshly baked items, and offer a interesting array of cocktails. It is a totally hip spot, located out of the way and hustle and bustle of Cabo San Lucas, and is frequented by many visitors as well as local ex-pats.

Next up: scuba diving on the Little Cayman Islands and then the Dallas Art Fair complete with Black Tie dinner event. Can’t wait!

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!