Had you taken my advice this weekend, and immediately locked your mortgage
rate yesterday, you would have lost out. The par rate for a 30-year fixed rate conforming
loan was 5.625% yesterday- today that par rate is 5.5%. My advice would
have cost you .125% in rate. Alas, my mortgage
rates report is not about “catching the bottom” as much as it is about
“avoiding the top”; it’s about mitigating market risk. From my explanation
on the Zillow Mortgage Blog:
My approach is with an aversion to risk so I’m biased towards locking
rather than floating a rate. What I do try to find is overreactions in the MBS
market so that you won’t lock your mortgage rate at the top nor float your
mortgage rate when higher rates are imminent. My customers RARELY catch the
“bottom” but they miss out on many “tops” when locking their
rate.
I look for irrational exuberance or irrational fear. If I think markets are
being too optimistic, like this week, I advise customers to lock. The whipsaw
reaction to irrational exuberance is irrational fear; a steep rise in mortgage
rates. THAT is what I want to avoid.
Long-term, I feel that the government
bailouts of financial institutions will result in a hefty price tag to the
taxpayer, which is inflationary in nature. I look for markets to start reacting
to this sooner rather than later.
If you have a definitive closing date for the purchase of your home, lock-in
your mortgage rate today. If you’re shopping for a new home. locking your
mortgage rate at contract acceptance is advisable. If you are one of the
fortunate few with equity, good income, and good credit, and want to refinance
your home loan, today looks better than next year. I’d love to discuss
your options with you.
PS: In my last report, a Florida mortgage broker suggested that my risk
mitigation strategy is inferior to a “lock and pray “approach:
Bottomline, none of us knows what is going to happen, so the smartest
course is to lock with a lender that will renegotiate your rate when we
experience one of these rapid drops that occur with little advance
notice.
I’ll agree that prescience is a virtue best reserved for the Divine. My
faith in the predictability of mortgage lenders’ actions has been shaken over
the last year. I’ve seen lenders
flip programs to make an extra buck and back off approvals. While this gentleman’s strategy has proved superior to mine, this
month, I still rely on my charts and research to execute low rates for
my customers.
Long Beach mortgage rates report is offered courtesy of Brian Brady.
I met 2 lovely young ladies, Sophia and Sylvia, who were sunning themselves on one of the bridges. They were kind enough to agree to let me photograph their sunny faces, so cute! Imagine my surprise when they asked me “Do you want to see us jump off of the bridge?” Well, they didn’t wait for an answer, they just went ahead and jumped off of the bridge! Then dragged themselves out of the canal at a convenient dock.
The 2 adorable little river rats were having a ball. I cracked up laughing. Just had to get pictures of this to share. 2 little hams, didn’t mind, they wanted to make sure I got them mid air. So, here they are, mid-air… They are looking forward to seeing their pictures here. Girls I hope you like them.
Apparently the girls are well known for their antics as most of the neighbors are used to seeing them do this often.
There were people swimming and kayaking below and boats passing through, I was very relieved to notice the girls taking extra precautions to make certain the coast was cleared for a safe landing.
It looked like so much fun, if I were still a kid, I’d have jumped in with them, lol…
I hope you enjoy the video of this afternoons pictures.
Best,
Laurie
Are you thinking about moving to Long Beach? Think you might enjoy living on Naples Island, perhaps raising your family there and watching your kids shiny, smiling, joyful faces as they jump off a bridge? If living on a gorgeous Italianesque canal, having a boat slip and living in a luxury waterfront home appeals to you, contact Laurie.
Today was the most gorgeous day here in Long Beach. Is it any wonder why we all love it here so much? I was out showing homes today to a new buyer, when we were through I drove into Belmont Shore and up Bayshore along the canal. It was about 5:30 in the afternoon and many people were enjoying the beach. Adults and children alike were in the water swimming, paddling around on boogie boards, and kayaking, others were relaxing on the sand. Small boats were slowly making their way down the canal…….it was perfection. It is what Long Beach is all about.
I parked the car, grabbed both cameras and walked onto the bridge above the canal. The tide was high, several boats that had been out for the day weren’t able to make it back under the bridge to return home were turning around to travel another route home. People were out on the water having fun, the sun was glistening and the water was an incredible azure blue, as was the sky. Today was a gorgeous day here in Long Beach.
In the background music could be heard, a 3 piece band had set up on the end of one of the docks on the other side of the bridge. Nice background for the end to a perfect day, thanks for adding a beat to it.
Residents of Belmont Shore and Naples Island were walking to the beach with sand chairs tucked under their arms planning on finishing their day off relaxing on the sand while the sun sank in our sky. What a great way to end the day and a wonderful weekend.
Today on 8/8/08 Bluff Park Historic District Home located at 2609 East 2nd St Closed Escrow.
8/8/08 is considered by the Chinese to be a very lucky day. The number 8 is coveted for addresses, phone numbers and bank accounts. A single 8 on a piece of property lends a sense of high status among the Chinese, as they know top dollars were paid just to obtain that number.
Lucky 8 is so lucky, that the Beijing Olympics are due to open today on 8/8/08 at exactly 8:08:08 PM.
My buyers were relocating to Long Beach from out of town, in for the weekend they were hoping to find the home of their dreams immediately. They wanted a beach house or a home as close to the beach as possible, loved the California bungalow style and the Craftman homes. We spent the weekend looking at many Long Beach homes. There were 2 they fell into deep like with.
We spent over an hour in a very nice Alamitos Beach California bungalow while I listened to the buyers discussing moving walls, changing a room into a closet, rearranging the yard space and more. I looked at them and said, “Lets keep looking, this is not the right home for you”. They were still interested in the home so many calls went back and forth with the agent. The comparable sales just didn’t justify the price. I called in a favor from an appraiser friend of mine, the home was overpriced by about $100,000, the seller was not going to be able to wrap themselves around that, it would send them into a short sale. Next…
Another home also located in Alamitos Beach, was represented by beautiful pictures of the interior, we were hopeful. As I pulled up to the home the buyers cracked up laughing and said forget it, we don’t even want to go in, lets just go to the next home on the list. Somebody had changed the front on this California bungalow, it looked like a mobile home with a very strange fence and front yard. It was really bad! Next…
The next day we visited another California bungalow, in the Belmont Heights historic district, which was a great looking home, but just didn’t fit right. It didn’t help that the listing agent no showed for the appointment and finally sent his assistant to show the home 45 minutes late. The bedrooms were too small, the buyers were deciding which wall would have to go to expand a bedroom. While the house had hardwood floors throughout, every room had different flooring, it was odd and needed to be replaced to be cohesive, the kitchen needed to be replaced and it was also just too overpriced. Ready to write an offer on the house I again advised them to wait, the perfect home would come along. Next…
Tuesday my clients were going home (out of state), dejected at not having found a house, as the perfect home entered the market. A large 2 story Craftsman on 2nd Street, in the Bluff Park Historic District, just 2 short blocks from the beach, it was beautiful, it was everything they wanted – and more, and it was priced to sell – immediately. I knew this home would have multiple offers on it by the next day. There were many pictures of the house which really showed the character and details of this majestic and beautiful home, kudos to the listing agent for that! I just knew this was the right home.
I called the listing agent and wrote the offer that night, site unseen, faxed it to the buyers who signed and returned it to me immediately. They had seen the pictures and were in love. The offer was emailed to the agent in the middle of the night, the first day on the market. The buyer flew back the next day to view the home and fell in love with it. By the end of the day the agent had several offers and my clients were starting to sweat.
We wrote a strong offer, the financing wasn’t exactly the strongest, but it was solid and it was real, we had a lock in letter and a loan commitment to stregnthen the offer. The agent indicated they were nervous about the loan. The lender called and assured the agent and seller that this loan was secure; he left such an impression on the listing agent that they went ahead and accepted our offer. The offer was accepted because it came in first, the financing was secure and my reputation was known to the listing agent. Geez, now that felt good.
Today I had the pleasure of turning the keys over to my buyers. This is one of the best parts of what I do. Looking at these smiling faces and knowing that they really did find their dream home. You see, my buyers knew what they wanted in a house, but this home, in this neighborhood exceeded even their expections.
I take my hat off to the listing agent Jennifer Davis and her transaction coordinator Leon Freeman. Thank you for a wonderful transaction. It is really great to work with true professionals.
Thank you to Michelle Rios, my transaction coordinator who kept this organized on my end.
Thank you to Brian Brady, loan officer, for once again stirring the magic cauldron and pulling the proverbial rabbit out of the hat.
It takes a team to close a deal. This deal had a top notch team! Thank you all for a job well done. The buyers are tickled pink today!
The condo market in Long Beach, and nationwide, may be in for a few rather large shockers which could rattle more than a few cages. We have already come across several HOA's in, or very near, serious financial jeopardy.
Many buyers who are searching for homes in Long Beach express interest in purchasing a "fixer upper" .
It is always interesting to hear what their idea of a "fixer upper" is. There are so many levels of fixer upper it is necessary to clarify what the buyer has in mind.
With so many Long Beach homes on the market at affordable prices one would think it should be really easy to find a home and get a great deal. So why are so many first time buyers having trouble finding a home that suits their needs at a price they can afford?
FHA loans are available to a maximum loan of $729,750 with a minimum 3 to 3.5% down payment until January 1, 2009 when they are currently scheduled to drop the maximum loan amount to $625,000, this could change.
Current FHA Lending Limits for LOS ANGELES COUNTY (LOS ANGELES-LONG BEACH-GLENDALE, CA METROPOLITAN AREAS):
Single Family Home or Condo : $729,750
Duplex : $934,200
Tri-plex : $1,129,250
Four-Plex : $1,403,400
7 Steps to Pre-Home Purchase Preparedness
1-Choose a Lender
2-Checking Credit Scores Prior to Starting the Purchase
3-Be Pre-approved Prior to Searching
4-Have A Solid Financial Plan
5-Insist on a Lock-In Letter
6-Demand a Loan Commitment
7-Waiting to Sell Your Home
If you are relocating to Long Beach California you will need lots of information. You will be curious to know about Long Beach communities , neighborhoods and resources . We have tried to include as many area resources as possible here to make your transition a smooth one.
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