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!

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!

Dog Days of Summer -- 2 Important Updates!

The Top News is interest rates have officially hit their lows of 2011 on the economic news...and we are very near last year's ALL-TIME lows.

Number Two News:


I have moved my office to 542 N. El Camino Real in San Clemente. New office phone is 949-373-7673 and my cell phone remains same at 714-290-6940. I am working out of a satellite office of Catalyst Lending, a full-service mortgage banker.

July - The Heat is On!

Rates continue to hit records lows, and property values are following suit. Sales volume appears to be picking up. Of course, this is the traditional buying season!

Reminder: if you’re holding onto a loan with a rate over 5.5%, you most likely should refinance. Rates are in the low 3’s for 5,7 and 10 year loans, and in the mid-4’s for 30 year fixed rates. Specific rates all depend on loan size, property value, and FICO score; and for loan approval you’ll need to offer up your firstborn child. NOT! But sometimes it feels that way these days!

Fun in the Sun:




Our Fourth of July was spent with old friends on their boat in the Dana Point Harbor. We kayaked around the harbor, and witnessed the water fights in the main channel where young and old alike—on all kinds and sized watercraft -- enjoyed splashing each other with power hoses, water guns, buckets of sea water, etc. What a sight to see!


We’ve attended the first two free concerts in the park here in Dana Point: a Fleetwood Mac cover band, and last week --the Parrot Heads. You’ve got to love Dana Point and all their community events. The parks offer harbor and ocean views in the Sunday afternoon sun while participants of all ages dance and socialize.




We’re loving summer. We had a short camping trip to Santa Barbara, where I crashed on my mountain bike. Then Steve and I explored the Jalama Beach Resort north of Gaviota, which we’d read about but never seen. It’s beautiful but very remote. www.jalamabeach.com We camped at our favorite spot in El Capitan. And, I’ve recovered from my knee injury!

Steve is still commuting to Dallas, and I’ll accompany him later this month. I hope it isn’t sweltering! At least I’ll have a swimming pool…What have you been up to

First of Summer Update

Rates are moving south again! We’ve officially hit the lows of the 2011 on poor economic and employment reports. If you’ve been putting off a refinance, don’t wait. And, it is better than ever for home buyers with home values at a five-year low.

3% down, no Mortgage Insurance

Fannie Mae has a program for home buyers called Homepath, offering minimum down payments of 3% with no mortgage insurance, and no appraisal! This is for a new primary residence only, but they also allow 15% down for a rental property purchase. The program only applies to homes owned by Fannie Mae. Find out more at www.homepath.com

Reverse Mortgage News

Reverse loans aren’t only for refinancing…they are becoming a more popular way for seniors to buy a “retirement” home or new primary residence. I actually closed a reverse mortgage purchase loan for a client a few years ago, and I was told it was the first in California.

Depending on the buyers’ ages (and they must be 62) these loans will provide anywhere from 60% to 75% of the purchase price in a reverse loan. The buyer must provide the balance of purchase price in cash, typically from the sale of their existing residence. Assuming they own their home outright, or have a low-balance mortgage, this frees up cash for investment/liquidity, and eliminates the need to “qualify” for the payments associated with a new mortgage.
Best of all, the rates are as low as 4% fixed.

Bezerkeley

I visited my son Kenny in early May in Berkeley. He was there to present a paper at a conference in the School of Architecture. We had only a few days together, but we had a great time, and glorious weather. I’d forgotten how beautiful the UC Berkeley campus is, with the creek running through it, rolling lawns, huge old trees, and expansive views down to the Bay and beyond, to the skyline of downtown San Francisco.

Our first stop Sunday was the outdoor deck of the Paragon Café at the Claremont Resort for an afternoon cocktail and a view of San Francisco in the distance. Afterwards, we took a stroll at the Cesar Chavez State Park on the Bay. During our time Monday, Kenny preferred to hang out in coffee houses, studying and talking to students.



We had dinner Monday evening at an old favorite, ẦCộté, a charming tapas restaurant in the Oakland Rockridge district, on College Avenue. It felt a little like old home week for me, since I had visited Berkeley so often while Katie was in school there.

This was my first sighting of Kenny since last September, when he left for Europe for his graduate program. So far, he’s been to Cottbus and Berlin, Germany; Tallinn, Estonia; Lisbon, Portugal; Wroclaw, Poland, and London in-between. He’s been in each location for at least six weeks studying architecture at various universities participating in his program. He won’t be home until this September for his brother Drew’s wedding! Best Man...

Claremont Colleges

I’ve seen my daughter Katie, who lives in Ann Arbor, a number of times this spring around her visits here to Cali, most notably on her 27th birthday in April while she was out here with her team for water polo games in San Diego and Claremont. The Claremont campuses were wonderful to visit on a warm April Sunday. You sort of feel like you’re back East on an Ivy campus. Katie’s also been out to visit for Mothers’ Day and Memorial weekend. What a treat!

Local News


Sunset’s is still our favorite local haunt in Capo Beach. As the name implies, it has great sunset views and offers music and dancing every Thursday through Sunday. Walking distance from our home, we frequent it for happy hour, or after dinner and almost always run into friends there! They are hosting a special event this Saturday with music and dancing all day, a live band starting at 6:00 p.m. and a caribbean themed buffet with mojito and sangria bar. Join us! www.sunsetsbar.com

The California Wine festival at Doheny State Beach, held the end of April, was a great time as usual. They hosted even more wineries than last year’s event, more breweries, and the food selections were fantastic! We found a new local restaurant that was serving a killer salmon ceviche…the Next Door. Steve and I visited the restaurant last week and sampled the ceviche, and bacon wrapped dates stuffed with blue cheese. Yummy!

Steve continues to commute to Dallas regularly for consulting on Museum Tower, a high-rise luxury residential development. I’m planning to visit again soon, but in the meantime we have a camping trip planned to our favorite Beach campsite at El Capitan overlooking the Pacific with panoramic views. We take our kayak and bikes, and fill our days with exercise, reading, relaxing…and Steve paints. We are hoping for warm weather!

Hope your Memorial holiday weekend was wonderful! Happy June!