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The Dow Jones Industrial Average has passed the 15,000 mark. But is that really reason to celebrate? If that isn't enough for you how about the Sharks won the first round in a sweep!
The sentiment on Wall Street may be that our long national fiscal nightmare is finally over, but the stock market is just one barometer of prosperity, many economists and consumer experts argue. The problems that have plagued the United States in recent years — declining household income, surging prices for many key goods and services, low interest rates for savings — remain very much in place. So be careful.. But you know and I know that people are ready to buy. Let's just be smart about it and make sure we help them make the best decision.
The mortgage market has been very very quite this week. Rates have risen a little on all the good economic news. Loan parameters seem to have stabilized (not getting any tougher). Word is some loosening guidelines might be right around the corner. So hold onto your britch's!
Lending is one thing, but what about those 100% equity, all-cash folks? Has the percentage of homeowners who are free-and-clear changed over time? In 1940, 55% of the people owned their homes outright. By 1980, this share dropped to 35%. leveling out into the following decades. Then census data shows 33% of homeowners free and clear in 2010, and Zillow's Negative Equity 2012 Q3 data shows 29% of homeowners are free-and-clear on their homes.
OK, so work the deal guys, great for listings! Ever heard of seller carry-backs? (they can generate income for the seller, and some tax advantages you know.) Lets get creative guys, need more listings.
The biggest economic report this week will be Friday's release of first quarter GDP, the broadest measure of economic growth. We have Durable Goods and Jobless Claims reports out also. Regardless rates are GREAT and loans are getting closed..
BELIEVE IT OR NOT MINIMUM DOWN LOAN BUYERS ARE GETTING ACCEPTED. Gotta get creative. Between the lender and the agent we must all work together to put the buyer in the best light of the seller.
So the last couple weeks I mentioned FHA and VA to help those borrower are Vets. But other than Vets, borrowers with very little money to work with in the past have used FHA. Great way to go if needed. But to be Honest unless their credit scores are lower or a unique circumstance, FHA with all the increases is very expensive what to go.
Conventional loans are the game now. It is about 90% of my business. ( 1 year ago it was the other way around.)
Up to $417,000 we can do 3% down. Yes condo’s too.
10% down over $417,000 to $625,500.
We even have 80/10/10 loans again (piggybacks)
But did you know: the lender or the borrower can pay upfront premium for Mortgage Insurance?
Therefore eliminating the monthly PMI. Yes the rate will be a bit higher or the borrower would have to come in with more money. But 3% down with no Mortgage Insurance? Savings can be huge! No refi needed down the road when rates are higher, might even help qualify.
Okay, so rates improved yesterday, given the possibility that a country (Cyprus) can literally tax bank accounts and take money out,(that's frightening). Just because the markets have seemingly forgotten about European problems doesn't mean they've magically gone away. Of course, Cyprus is known to be an offshore banking mecca for Russia, the country is caught between a rock and a hard place, and the parallels between it and a country like the United States are small. Nonetheless, we saw a flight to quality, which is our bonds, and we benefited from the rally. But the news has rippled around the world: what if money in any bank anywhere was subject to a tariff? That is highly unlikely but, To tax the bank deposits of savers sends an ominous message to the entire global investment community, and we need to consider what the governments of Europe have done. To be clear, they initiated a surprise assault on the precautionary savings of their own people. Such a move should send shock waves across the entire population of the developed world. With that being said markets are back to normal today.
The Feds will be telling us about their meeting today. Nothing new is expected. But what if? Oh never mind...
RATES ARE GREAT STILL! And is becoming a boring subject.
Hint of the week: go back to those no equity sellers you talked too last year, bet they have equity now. Maybe ready to sell? move up?
Landmark Mortgage Group is a division of Opes Advisors and licensed by the CA Dept. of Real Estate, Real Estate Broker license 01458652 and NMLS 235584. Equal Opportunity Lender.