Our Holiday for Martin Luther King's birthday made me think about what we do for others. In the past I have been actively been involved in my children's schools (geez that was a long time ago!) as far as PTA, PTO, and Bond financing for local school improvements. I was also instrumental in the origination of the Dinosaur Dash in Tustin, a race/walk event to raise funds for the Tustin Public Schools Foundation.
But some of my most memorable work was on the Board of the Tustin Boys & Girls Club. I had the honor to attend a couple of national conventions where there were many young people representing their clubs nationwide. These young adults universally felt the Club saved their lives.
This organization provides things like after-school activities for kids of all ages, as well as meals and transportation to and from school. To this day it makes me tear-up to think of the kids they keep off the streets, and instead active in sports and homework, and heading toward responsible adulthood.
Now that we live in South Orange County, we support the Boys and Girls Club of Capistrano Valley. This is an amazing organization with three locations that serve an average of 480 children every day and 3,000 kids over the course of the year. My husband serves on the board and we support many of their events and fund-raising programs. It is gratifying to say the least, and I can't think of a better way to give back for the fortunate lives we lead.
American Pacific Mortgage
Monday, January 21, 2019
Wednesday, January 9, 2019
30 Year Fixed Rate Financing - Is it Worth It?
In the aftermath of the great Recession, there was a flight to the "security" of the 30 year fixed rate loan. But, how many people do you know who have had the same mortgage loan for 30 years? Hmmmm...my parents did. They never moved from their original home, and they remodeled utilizing cash on hand. But, in today's world, we rarely see people who have lived in the same home for 30 years, and even if they have, they have refinanced at one time or another for alternate purposes such as an addition, remodel, debt consolidation etc.
I personally can't think of anyone today who has had the same loan for that long. So, why the tendency to go for a 30 year fixed rate loan? Today there are far more attractive rates for 7- or 10-year ARM loans vs. a 30 year fixed rate loan. An ARM loan is still a 30 year amortizing loan, but the rate is only "fixed" for the initial period. After that, it adjusts on a fixed schedule, usually annually, over an index such as LIBOR or Treasuries.
There are reasons to use a 30 year fixed rate. A rental property might be a good candidate for a 30 year fixed rate loan. But, why pay a higher interest rate for a 30 year loan when you likely won't hold the loan for more than seven to ten years? Prior to the recession of 2008, the average hold time for a home in California was six years. Post-recession it extended to nine years, mostly due to the fact that many homeowners were "under water" and owed more than their home was worth. However, this is certainly not the case today.
I personally can't think of anyone today who has had the same loan for that long. So, why the tendency to go for a 30 year fixed rate loan? Today there are far more attractive rates for 7- or 10-year ARM loans vs. a 30 year fixed rate loan. An ARM loan is still a 30 year amortizing loan, but the rate is only "fixed" for the initial period. After that, it adjusts on a fixed schedule, usually annually, over an index such as LIBOR or Treasuries.
There are reasons to use a 30 year fixed rate. A rental property might be a good candidate for a 30 year fixed rate loan. But, why pay a higher interest rate for a 30 year loan when you likely won't hold the loan for more than seven to ten years? Prior to the recession of 2008, the average hold time for a home in California was six years. Post-recession it extended to nine years, mostly due to the fact that many homeowners were "under water" and owed more than their home was worth. However, this is certainly not the case today.
Wednesday, November 28, 2018
New Loan Limits for 2019!
The new conforming loan limits (FNMA and FHLMC) are $484,350 in lower cost areas, and $726,525 in high cost areas, such as Orange and Los Angeles counties.
This is great news for both homeowners and prospective buyers. Fannie and Freddie both offer more lenient guidelines for these loans than are generally available for "jumbo" or non-conforming loans, offering higher debt-to-income ratios, more lenient FICO scores, lower reserve requirements, as well as lower interest rates, particularly for those loans under the $484K limit. Further, there are special programs offering as little as 3% down for first-time homebuyers, making it more affordable for many homebuyers. And, the conforming loans may be coupled with down payment assistance programs to get up to 100% financing.
These limits generally translate for FHA loan limits, as well as VA loans; but they have not announced their new limits yet.
This is great news for both homeowners and prospective buyers. Fannie and Freddie both offer more lenient guidelines for these loans than are generally available for "jumbo" or non-conforming loans, offering higher debt-to-income ratios, more lenient FICO scores, lower reserve requirements, as well as lower interest rates, particularly for those loans under the $484K limit. Further, there are special programs offering as little as 3% down for first-time homebuyers, making it more affordable for many homebuyers. And, the conforming loans may be coupled with down payment assistance programs to get up to 100% financing.
These limits generally translate for FHA loan limits, as well as VA loans; but they have not announced their new limits yet.
Friday, September 7, 2018
Home Values Still Rising!
The latest figures released from CoreLogic's Home Price Index show that LA County had the highest appreciation, up 7.6% in the last 12 month period, followed by 7.4% for the Inland Empire (they have more to make up for past losses) and 5.9% for Orange County. The increase in Orange County for the first half of 2018 is 6.2% however. Why are prices rising? Lack of inventory is the primary booster. The forecast is for a slowdown in price gains, however.
What does all this mean for homeowners and prospective homebuyers? Don't delay if you are looking to buy a home or investment property, as both rates and prices will continue to rise, at least in the short term. If you have been thinking of a remodel or accessing some of the equity in your home for other major purchases, or debt consolidation, best to move sooner than later. Interest rates are still very low from a historical perspective. It isn't always best to refi your current loan, though. In some cases a HELOC may be a better solution. We always look at all the options, to assist a client in making the right decision.
What does all this mean for homeowners and prospective homebuyers? Don't delay if you are looking to buy a home or investment property, as both rates and prices will continue to rise, at least in the short term. If you have been thinking of a remodel or accessing some of the equity in your home for other major purchases, or debt consolidation, best to move sooner than later. Interest rates are still very low from a historical perspective. It isn't always best to refi your current loan, though. In some cases a HELOC may be a better solution. We always look at all the options, to assist a client in making the right decision.
Wednesday, July 18, 2018
King Tides and Changing Tides!
TIDES OF CHANGE
We’ve been experiencing King Tides here in Southern California. But there also appears to be a sea change in the Real Estate markets.
Sales are slowing, and although home prices have continued to reach new highs in the coastal areas, properties are remaining on the market longer, and selling for less than list price in many cases. Mortgage applications are slowing.
What does all this mean? Interest rates are hovering between the mid-4’s to low 5’s depending on a host of factors. The increase in rates and home prices has caused our affordability index, based on median income levels, to plummet. Personally I think many buyers are just sitting on the fence, waiting for price reductions.
To give a specific example, earlier this year, a home buyer with a jumbo loan (over $453,150) with 20% down could get a 30 year fixed rate at 4.375%, and today that loan is at 5.125%.
If you have put off refinancing your home, don’t delay. Now is the time to lock in a fixed rate for that line of credit; pull out cash for a remodel or pay off high interest credit. Rates aren’t going to drop, but your home value may.
HOME FRONT AND TRAVELS
The biggest news is the arrival of my new grandson Edward James, born on June 26th. At 8 lb 9 oz. he is a big boy! EJ or Eddie makes no. five and counting for the tribe of grandchildren, three boys and two girls. WOW! Very exciting, and I can’t wait to get my assistant Katie back into action after maternity leave.
Katie is ready to originate her own loans and is fully licensed. She will be networking in the Tustin area, and in her neighborhood in Rossmoor. We are very excited for #thecardteam!
Steve and I took a quick trip to Cozumel in May for some scuba diving.
We stayed at Scuba Club Cozumel www.scubaclubcozumel.com which is walking distance to the town of San Miguel. The dive operation was well-run and we met some interesting new friends. The best thing about our trip, other than great diving, was the plethora of great restaurants in town. There are many more choices than in the past with great seafood and authentic Yucatan dishes. We had some heavy rainstorms that passed through, but they were late afternoon/evening so didn’t affect our diving. One evening the street was entirely under water from curb to curb.
We spent a long weekend in Catalina with friends from our yacht club and had a blast.
Lunch at the Mt. Ada Inn, a dive trip one day, golf the next, cabanas at Descanso, boat parties and a lovely hotel room at the Metropole. The island ran out of water one day (long story) but we happily showered with bottled water. All in all, a great time! A dingy ride down to White’s cove was an adventure—sort of similar to Mr. Toad’s Wilde Ride—with a captain who prefers speed.
Next up: Family trip to Rock Creek in the High Sierra with the entire tribe; all our kids (6) plus spouse/significant others; and five grandkids. We will have a fabulous time hiking, fishing and playing cards!
Remember we are here to assist with home financing! We do our best to make the process simple and understandable.
We’ve been experiencing King Tides here in Southern California. But there also appears to be a sea change in the Real Estate markets.
Sales are slowing, and although home prices have continued to reach new highs in the coastal areas, properties are remaining on the market longer, and selling for less than list price in many cases. Mortgage applications are slowing.
What does all this mean? Interest rates are hovering between the mid-4’s to low 5’s depending on a host of factors. The increase in rates and home prices has caused our affordability index, based on median income levels, to plummet. Personally I think many buyers are just sitting on the fence, waiting for price reductions.
To give a specific example, earlier this year, a home buyer with a jumbo loan (over $453,150) with 20% down could get a 30 year fixed rate at 4.375%, and today that loan is at 5.125%.
If you have put off refinancing your home, don’t delay. Now is the time to lock in a fixed rate for that line of credit; pull out cash for a remodel or pay off high interest credit. Rates aren’t going to drop, but your home value may.
HOME FRONT AND TRAVELS
Katie is ready to originate her own loans and is fully licensed. She will be networking in the Tustin area, and in her neighborhood in Rossmoor. We are very excited for #thecardteam!
Steve and I took a quick trip to Cozumel in May for some scuba diving.
We spent a long weekend in Catalina with friends from our yacht club and had a blast.
Next up: Family trip to Rock Creek in the High Sierra with the entire tribe; all our kids (6) plus spouse/significant others; and five grandkids. We will have a fabulous time hiking, fishing and playing cards!
Remember we are here to assist with home financing! We do our best to make the process simple and understandable.
Thursday, May 24, 2018
Why Should You Call Us for your Home Loan?
Sometimes when I speak with borrowers, they tell me they heard of a lower interest rate available. Of course there are! What you read in the paper or hear on the radio is always yesterday's news, and oftentimes can be misleading. It might be a "teaser" or mis-communicated rate for a short-term loan vs. a 30 year fixed rate loan. Plus in today’s environment, there are lots of good reasons to use an ARM vs. a longer-term fixed-rate loan. But, they aren't the right fit for everyone. We provide our clients with the best possible counsel and service which go beyond just rate considerations.
So, back to what we do best:
1. We Build Relationships: We like our clients, and they like us, and we strive for mutual trust and respect. It is always optimum to develop a positive bona fide relationship, and it makes working together more fun. We keep in touch after the transaction closes, and follow up to be sure everything is going well. We provide advice about the time to refi, or not…and the time to buy a 2nd home or investment property. Moving up or down? We’ll give the best advice and loan options possible. We care about the kids, the grandkids, and even the family dog. If you have a better option elsewhere, we’ll tell you. And we always advise against using one of the “big banks.” Never better.
2. Knowledge and Expertise: I love to say I did not just fall off the turnip truck. I’ve been in this business well over twenty years, and have worked through many ups and downs, the big meltdown, and survived. There are always new things to learn, with changing programs and guidelines. We stay on top of the changing environment and have many resources to investigate best options for our clients.
3. Gritty stick-to-itivness: I don’t know anyone who works harder to get loans closed for our clients than my team. We don’t give up, even in the face of tough or inflexible underwriting. Yes, it can happen. We fight to the finish to get loans closed and almost always in a timely fashion. Many Loan Officers don’t try as hard, don’t investigate all options, and give up. Not us. Never. It takes determination and experience to know how to structure or re-structure loans for a happy closing for all.
4. Education on Expectations: We’ve developed an introductory video; a list of tips on what to do and not to do; and how the loan process will proceed. An educated client won’t be surprised by some of the crazy things underwriting may require. We explain in detail the loan level pricing adjustments that going into what rate you receive. Not all borrowers are made the same. Your FICO score, your debt-to-income ratio, your loan-to-value and many other factors affect the interest rate you receive. There is no “one size fits all” loan available in the marketplace today. This is why rates quotes are worthless without providing complete information.
5. Pre-Approvals you can Count on: We have never issued a pre-approval letter and not been able to close the loan. We collect all the pertinent information necessary from the client to accurately analyze income, pull credit, run automated underwriting (if applicable) and provide a pre-approval letter. And, we will go a step further with a full underwrite of income and assets for our clients, prior to identifying a property. This is especially useful in a marketplace like we have today, where being able to waive a loan contingency, with a client who is already approved, only an appraisal, contract and title approval is required.
So, back to what we do best:
1. We Build Relationships: We like our clients, and they like us, and we strive for mutual trust and respect. It is always optimum to develop a positive bona fide relationship, and it makes working together more fun. We keep in touch after the transaction closes, and follow up to be sure everything is going well. We provide advice about the time to refi, or not…and the time to buy a 2nd home or investment property. Moving up or down? We’ll give the best advice and loan options possible. We care about the kids, the grandkids, and even the family dog. If you have a better option elsewhere, we’ll tell you. And we always advise against using one of the “big banks.” Never better.
2. Knowledge and Expertise: I love to say I did not just fall off the turnip truck. I’ve been in this business well over twenty years, and have worked through many ups and downs, the big meltdown, and survived. There are always new things to learn, with changing programs and guidelines. We stay on top of the changing environment and have many resources to investigate best options for our clients.
3. Gritty stick-to-itivness: I don’t know anyone who works harder to get loans closed for our clients than my team. We don’t give up, even in the face of tough or inflexible underwriting. Yes, it can happen. We fight to the finish to get loans closed and almost always in a timely fashion. Many Loan Officers don’t try as hard, don’t investigate all options, and give up. Not us. Never. It takes determination and experience to know how to structure or re-structure loans for a happy closing for all.
4. Education on Expectations: We’ve developed an introductory video; a list of tips on what to do and not to do; and how the loan process will proceed. An educated client won’t be surprised by some of the crazy things underwriting may require. We explain in detail the loan level pricing adjustments that going into what rate you receive. Not all borrowers are made the same. Your FICO score, your debt-to-income ratio, your loan-to-value and many other factors affect the interest rate you receive. There is no “one size fits all” loan available in the marketplace today. This is why rates quotes are worthless without providing complete information.
5. Pre-Approvals you can Count on: We have never issued a pre-approval letter and not been able to close the loan. We collect all the pertinent information necessary from the client to accurately analyze income, pull credit, run automated underwriting (if applicable) and provide a pre-approval letter. And, we will go a step further with a full underwrite of income and assets for our clients, prior to identifying a property. This is especially useful in a marketplace like we have today, where being able to waive a loan contingency, with a client who is already approved, only an appraisal, contract and title approval is required.
Friday, April 20, 2018
Home Prices Hit 10+ Year High
Orange County home prices officially hit an all-time high at $824,450 for the median sale price. The median in Los Angeles County jumped over 13% to $528,950. But the priciest homes in the State of California are still in the Bay Area, with medians over $1 million. WOW. Much of the increase in prices can be attributed to scarcity of inventory. There just aren't enough homes for sale to meet demand, thus the increase in price. Still, the median for the entire state is $564,830, up almost 9% over the prior year.
What does this mean for you? Well, if you are a home buyer, you'd best be fully pre-approved so you can offer a short escrow/contingency period. Here at Catalyst, we call that our Keys On Time program, guaranteeing close in 20 days.
If you are a current homeowner, your equity just increased quite a bit. This is a great time to consider that remodel or new roof, etc. Or, debt consolidation if you've got a floating Line of Credit on your home...time to lock that rate in.
What does this mean for you? Well, if you are a home buyer, you'd best be fully pre-approved so you can offer a short escrow/contingency period. Here at Catalyst, we call that our Keys On Time program, guaranteeing close in 20 days.
If you are a current homeowner, your equity just increased quite a bit. This is a great time to consider that remodel or new roof, etc. Or, debt consolidation if you've got a floating Line of Credit on your home...time to lock that rate in.
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