Here is this morning’s snapshot of the bond market:

And here is how lenders are reacting:

So far this morning 30 lenders are lowering rates and 45 lenders are raising them.

The news affecting rates today is really a mixed bag, which explains why lenders are divided on their reactions.

• The number of housing stats are the best they’ve been since 2008, but that number is offset by a lower number of building permits being issued
• Headline PPI numbers are great, but the core PPI (not including food and energy) is just so-so
• The Euro still owns the spotlight, which will help our bond market as long as there is uncertainty there.

Here is a snapshot of the bond market this morning:

And here is how lenders are reacting:

So far this morning 36 lenders are lowering rates and 2 lenders are raising them.

News that is good for the bond market this morning includes:

• Weak NY Fed Manufacturing numbers caused the early morning rise in the bond market
• Record amount of foreign purchases of our bonds
• The Euro is still falling hard against the dollar and other currency

Have a great Monday.

Good morning. Here is today’s snapshot of the bond market:

And here is what lenders are doing:

72 lenders are lowering rates and 13 lenders are raising them.

• Jobless claims stayed flat – the weak job report is helping rates stay low today.
• All eyes are on the 30 year bond auction tomorrow and the retail sales number. If there is a demand for the 30 year bonds and retail sales are low, that will be  good for rates, and if the opposite is true, rates could increase tomorrow.

Enjoy the sun today!

It’s already that time again! Don’t forget to set your clock ahead 1 hour tonight!

 It’s also time to get off the fence if you’re considering purchasing a home. Have your family’s needs changed?

Do you need more bedrooms or a bigger yard – or just more space?

Interest rates are rising, and even with the lost equity in your current home, it may make financial sense to make that move-up now while you still have some equity left for a down payment.

Each situation is unique – if you’d like a customized analysis, I’m happy to provide you with one.

You’ll be able to see just how much a move would save/cost you versus how much it will save/cost for you to stay in your current home.

 Let me introduce you to the “SBD or Seller Buydown Program”. This progam can dramatically effect how much home you are able to purchase. This is invaluable information for you to have, especially if you are thinking of waiting before buying. The Fed’s program to keep interest rates low is ending at the end of March. The average interest rate (over a 48 month period) before the Fed put their program into place was 6.250%.

See what a difference that can make?!

These payments are principal and interest only – they do not include taxes, homeowners insurance or mortgage insurance

Please give me a call if you’d like to take a look at your own financial situation and see what your options are.

As always, there is no obligation.

Getting a mortgage these days can leave YOU feeling overwhelmed and helpless. If only there was a way to know that you’re getting honest, accurate information to make informed, educated decisions about YOUR mortgage.

 I don’t know about you, but I really dislike buying a car. I dislike the whole process. There is a whole lot that goes on behind the scenes that I don’t understand. I never know if I can believe what the salesman is telling me. I never know if I’m getting a good deal or being taken advantage of.

Perhaps that is why I approach helping people get mortgages a little differently. I think that it’s important for you to have all of the information you need to make a wise decision. It’s your mortgage – you’re the one who is going to live with it for possibly the next 30 years.  You need to be certain that you’ve gotten the best mortgage to fit your needs, structured in the correct way to help you achieve all of your financial goals.

I believe that getting a mortgage doesn’t have to be a painful experience. You don’t have to simply turn over all of your personal and financial information and then just hope for the best…hope that your loan originator knows what they are doing – hope they are telling you the truth – hope they have given you the best advice on which loan option to choose – hope they know the best time to lock in your rate … Instead, once given the information you need, you can choose how to structure your mortgage and what rate to choose. I have the tools to help you do just that. Let me show you what I mean…

Things aren’t always as they seem.

If you’re not familiar with the terminology and the loan process,

how will you know if you are getting a good deal, or being taken advantage of?

(by the way… the man squatting in the picture above isn’t holding anything in his hands. All of the water, the drain, and the hose and reel– just a chalk drawing.)

When you work with me, I won’t just tell you what loan options you have and which one will be best for you – I’ll SHOW YOU.

Do you know the answer? Which is better – a lower rate with higher fees, or a higher rate with lower fees?

I won’t just quote you a rate and fees, I’ll SHOW YOU how much you will save each month and over the life of the loan.

Then YOU make the decision as to which loan option is best for you.

Should you ask the seller to help you with your closing costs? Or would it be better to ask them to help you buy down the rate instead? What is the best way to structure your offer so that you’ll save the most amount of money? I’ll SHOW YOU what the different options will mean to you in dollars and cents, and then YOU decide what is best.

Is now a good time for you to buy? Or would it be better to wait in case home prices decrease? I won’t just give you my opinion, I’ll SHOW YOU the numbers in black and white. Then YOU make the decision.

  How will you know who has the best rate? Is spending your time and energy rate shopping with several different lenders the only way to know? How will you know the best time to lock in the rate? I won’t just tell you what the markets are doing – I’ll SHOW YOU.

…and I’ll SHOW YOU which lenders are raising their rates, and which ones are lowering their rates – in real time. Then YOU decide when it’s the best time to lock in your rate.

Getting a mortgage doesn’t need to be a frustrating experience that leaves you feeling helpless.

I won’t ask you to trust me, I’ll earn your trust, by giving you the information you need to make informed, educated decisions about your mortgage.

FHA (Federal Housing Authority) is the government agency that provides federally insured mortgages. The majority of people buying homes these days use an FHA mortgage because it is the only option they have. FHA mortgages only require a 3.5% down payment, are more flexible with credit history and score, and have less expensive mortgage insurance than conventional loans. Most homebuyers don’t have a large down payment and usually have less than perfect credit. Conventional loans in Washington state currently require a 10% down payment and the mortgage insurance, although no upfront insurance required, is more costly per month.

Things are changing, though. FHA is committing to tightening their guidelines, and will be announcing the new changes as soon as January. Here are some of the changes that are being discussed:

1. Increasing the down payment requirement from 3.5% to 5%
2. Reducing the amount that sellers can contribute towards their closing costs from 6% to 3%
3. Increasing the amount of mortgage insurance required – both the upfront insurance and the monthly premium amount
4. Increasing the minimum credit score
5. Increasing the interest rate for borrowers with lower credit scores

In addition to the changes being planned for FHA loans, Fannie Mae is also tightening their guidelines, as well. As of December 12, 2009, the following underwriting guidelines will be in place for all mortgages, including both conventional and FHA.

1. Minimum credit score of 620
2. Maximum debt-to-income ratio (total monthly debt divided by total monthly gross income) of 45% (up to 50% for very strong borrowers) -note- Currently there is no set debt-to-income limit. I have seen ratios of up to 67% get an approval.

Underwriting guidelines continuing to tighten. If you are considering buying a home, but are waiting for home prices or rates to come down even more, you may find that you’ve waited so long that you no longer qualify. Rates are the lowest that they have been in 50 years. Home prices may never be this low again. It’s time to put every penny you can into savings, get your credit score up as high as possible, and make your move now. (Whatever you do, DON’T try and improve your credit score on your own! Please give me a call and I’ll be happy to go over your credit report with you.)

 Available rates and programs may change at anytime. For your personal rate quote, please contact me.

 Unless otherwise stated, the following figures assume a purchase transaction, 740 credit score, owner-occupied, single-family residence in King, Snohomish or Pierce counties, tax & insurance reserve accounts not being waived.

(Rate/term refinances are requiring a 45-60 day lock, so rates are .125% higher – Cash out refinances are also higher with price hits for credit score and loan to value.)

Conforming – (Loan amounts up to $417,000)

· Sales price: $500,000 w/ 20% down payment

· Loan amount: $400,000

· 30 Year Fixed: 4.875% (APR5.000%)

· 15 Year Fixed: 4.375% (APR 4.589%)

Conforming High Balance – (Loan amounts of $417,001 – $567,500)

· Sales price: $625,000 w/ 20% down payment

· Loan amount: $500,000

· 30 Year Fixed: 5.625% (APR 5.748%)

Non-owner/Investment Property (1-2 unit)

· Sales price: $350,000 w/25% down payment

· Loan amount: $262,500

· 30 Year Fixed: 5.99% (APR 6.145%)

FHA

· Credit score: 680

· Sales price: $425,000 w/3.5% down payment

· Loan amount: $410,000

· 30 Year Fixed: 4.875% (APR 4.999%)

Rates as of Monday, April 20, 2009, 11:30am. Available rates and programs may change at anytime. For your personal rate quote, please contact me. The following rates assume a purchase transaction, owner-occupied, single-family residence, tax & insurance reserve accounts not being waived.

Rate/term refinances are requiring a 45-60 day lock, so rates are .125% higher – Cash out refinances are also higher with price hits for credit score and loan to value.

Conforming – Loan amounts up to $417,000

Credit score 740

Sales price: $500,000 w/ 20% down payment

Loan amount: $400,000

30 Year Fixed: 4.750% (APR 4.874%) w/1% origination fee- 4.99% (APR 5.027%) w/no orig. fee

15 Year Fixed: 4.375% (APR 4.589%) w/1% origination fee- 4.875% (APR 4.912 %) w/no orig. fee

5 Yr ARM: 4.125% (APR 7.232%) w/1% origination fee- 4.750% (APR 7.718%)w/ no orig. fee

Conforming High Balance – Loan amounts of $417,001 – $506,000 for properties in King, Snohomish or Pierce Counties.

Credit Score 740

Sales price: $632,500 w/ 20% down payment

Loan amount: $506,000 (Fannie Mae has announced the limit will increase to $567,500 May 1, 2009)

30 Year Fixed: 5.250% (APR 5.370%) w/ 1% origination fee- 6.250% (APR 6.378%) w/no orig. fee

FHA

Credit score: 660

Sales price: $425,000 w/3.5% down payment

Loan amount: $410,000 (King, Snohomish and Pierce Counties)

30 Year Fixed: 5.000% (APR 5.930%) w/1% origination fee- 5.500% (APR 6.324%) w/no orig. fee

Non-owner/Investment Property

Credit score: 740

Sales price: $350,000 w/25% downpayment

Loan amount: $262,500

30 Year Fixed: 5.875% (APR 6.029%) w/1% origination fee