Long Beach Mortgage Rates Report: February 25, 2008

I haven't posted much because I'm still locking all mortgage rates, for Long Beach home buyers,  at application.  The market is so volatile because some on Wall Street believe that we're NOT going to have a recession and that the Fed will reverse course and start raising the Discount and Fed Funds rates.

Say What?  Well, I don't make the rules, I follow them.  While I expect to see lower rates, in Long Beach, in 6 months, today, they're rising faster than a popstar's audience grows.  Of course, what goes up can come crashing down (ask Britt) but today, we're dealing with higher mortgage rates.

The strategy I recommend is to obtain a 10/1 ARM at 5.375% (5.62% apr) with no discount points.  You can lower the rate on that loan to 5.125% by paying a point upfront but it will take over 5 years to recoup that cost; I think you'll sell or refinance during that time (or have an opportunity to do so).  I just can't understand why anyone would want a 30 year fixed AT EXACTLY 1% HIGHER than the 10/1 ARM.

Okay, let's get back to Britney Spears; she'll illustrate my point about the 10/1 ARM.  In 1999, she was 17 years old and the hottest thing since Elvis.  She released her debut album, Baby One More Time, and was the darling of kings and Presidents.  Today, Britt's struggling in rehab and dealing with custody issues.  In ten years, she will find God, get re-married, remake her career, and be considered one of the most influential artists of all time (only in America).  Now, I'm exaggerating to reduce the ten year time frame to the ridiculous.  I only wish the best for Britney and certainly wish the best for you.

That's why I'm so adamant about the ten year ARM for Long Beach home buyers.

PS- Want the fastest response in this volatile market?  Apply online and call me at 858-777-9751 right after you apply online.

Posted on 2008-02-25 @ 2.33:29 am by Brian.Brady

Mortgage Pre-Approval On Weekends

When you and Laurie Manny are looking at homes, on the weekend, banks and mortgage brokerages are closed.  Most of the lending professionals are at the beach; I'm no different.  I work hard during the week and enjoy the rest and recuperation the weekend affords.  You might find that it is increasingly difficult to get pre-approved for a loan, for your Long Beach home, after 5PM on Friday.

"I need a loan approval and I need it now!", you think.  "I have an offer to make"

 Here are four steps to securing a loan approval by NOON tomorow, regardless of what day it is:

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Posted on 2008-02-24 @ 1.49:11 pm by Brian.Brady

Long Beach Homebuyers Can Secure FHA Financing

100% financing has pretty much disappeared for Long Beach properties.  Banks and mortgage lenders are running scared because of the declining market; they're unwilling to lend the full purchase price on Long Beach homes, today.  I have opinions about that policy but what I think doesn't matter.  I live in a realistic world and today, the reality is that I can't get you a zero down payment home loan.

Our old friend, the Federal Housing Administration (FHA) might provide some relief for the current capital drought.  FHA loans allow for:

1- A 3% Downpayment.  That downpayment can come as a gift from a family member, employer, or charitable organization.

2- Less than Perfect Credit:  Credit scoring isn't used as a determining factor for your loan approval.  Generally speaking, if you've paid your bills in a timely fashion, for the last twelve months, have no large collection accounts or judgments outstanding, and have foreclosures or bankruptcies that are at least two years old.

3- Generous debt-to-income ratios.  FHA loans allow for monthly debts for  up to 43% of your monthly income.  Compared to the traditional 36% ratio for convetional loans, this can help you get more home.

FHA loans are even more forgiving of credit situations when a larger downpayment is made.  If you are a Long Beach home buyer, with 10% downpayment, and were relying on a sub-prime mortgage (which isn't there anymore), a FHA loan may be a worthy consideration.

Here are 100 common questions (and answers) about FHA loans (from the FHA website) :

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Posted on 2008-02-24 @ 12.12:12 pm by Brian.Brady

Long Beach Mortgage Rates Report: February 14, 2008

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Posted on 2008-02-14 @ 9.28:22 am by Brian.Brady

Did Countrywide Freeze Long Beach Home Equity?

Yesterday, I heard that Countrywide was freezing Long Beach home equity lines of credit; I thought it was a remote rumor.  I sniffed around the internet and found a lively conversation over on Yahoo Answers:

Countrywide just froze my HELOC

     29-Jan-08 05:31 pm    

Not to fret, I have a solution if this happened to you.

Posted on 2008-01-30 @ 8.07:49 am by Brian.Brady