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….

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!

Rates Are Still Hot...To Match Last Week's Weather

Last Monday evening we had to sleep in our living room under the ceiling fan, with the French doors open to the ocean breeze to escape the heat! I really enjoyed the rest of the heat last week though. This morning I woke up to rain…what is going on with our weather?

Thankfully at least interest rates are still hot! Rates are still hovering at/near record lows… these are quotes for 45 day locks:

Up to $417,000
Ranging from 3% for 5/1 ARM to 4.25% 30 year fixed

$418,000 to $729,000
Ranging from 3.375% for 5/1 ARM to 4.375% for 30 yr fixed

True Jumbo loans (over $729,000)Ranging from 3.875% for 5/1 ARM to 5.375% for 30 yr fixed

Remember rates and fees/costs depend on occupancy, property type, loan-to-value and credit scores. The rates shown above all assume a one point origination fee plus costs, but may be more or less depending on loan size.



GERMANY

I had to bid adieu to my son Kenny who left Saturday afternoon for the Brandenburg University of Technology to study Architecture in a Graduate school program. His program is located in Cottbus, but they will be traveling to a number of different locations in Europe during his two years there! He was accepted less than two weeks ago, so it was a hectic time for him to say the least. He drove cross-country with all his belongings from Vermont, stopping to visit his sister Katie in Ann Arbor, and in Boulder to see old friends on his way.

After a brief two days here in the OC, he flew to Berlin and arrived Sunday evening, when he took a train to meet new university friends. His biggest packing challenges were whether to bring his tripod for his video camera, and which books to discard.

I hope he enjoys the food there…I was expecting Kenny on a trip through Germany in 1986, and to this day just the thought, much less the smell of sausage and sauerkraut makes me nauseous.


I learned of his university acceptance while on a Mexican Riviera cruise with my mother, who celebrated her 85th birthday on-board. We had a wonderful and relaxing trip complete with lovely dinners, and made new friends from Great Britain who sat at our dining table. We really enjoyed the Salsa & Salsa excursion in Mazatlan where we learned to make authentic Mexican salsas, guacamole, and margaritas AND learned to dance the salsa. (Well, mom didn’t dance, but I took a brief lesson) You can find out more about the classes with Two Dancing Chefs on www.salsaandsalsa.com . They have just opened classes at another venue in Cozumel. They are also on Facebook under Salsa Mazatlan Mexico.

Our Cruise was with Carnival and they did a great job, so I’d highly recommend them. Waiting until September we didn’t have many children on-board, but there were adults of all ages-- which was nice. My mother played in a bridge tournament during our days at sea which kept her busy and I kept her busy in-port at Puerto Vallarta and Mazatlan.

More next time on the Battle of the Paddles...

Greenhouse Design

My son Kenny has designed a greenhouse for his college, Marlboro, located in Vermont.

He plans to start building in the spring--once the snow thaws and the building permits are approved by the local jurisdiction.

When it is complete, the college will be able to grow produce for their cafeteria year round, instead of just during the spring-summer-fall season.

Here is a link to his design on YouTube, or you can find it yourself on YouTube by searching for Marlboro Greenhouse.

greenhouse