Latest Mortgage News and Updates

Fed Funds Rate at 1%

The Federal Reserve continues to take drastic steps in reaction to the current economic situation. Banks have been trading preferred stock with the treasury for billions in cash which the treasury hopes will increase liquidity and ultimately ease lending for the consumer. The Federal Reserve also dropped the benchmark lending rate to 1% on October 29th. The rate is now equal to the lowest it has been since June 25th 2003 when a huge refinance boom was spurred on by low rates and easy lending.

Fed Rate History: http://www.federalreserve.gov/fomc/fundsrate.htm

Stock for Cash: http://www.bloomberg.com/apps/news?pid=20601087&sid=a1ysz59UAZnM&refer=home

What does all of this mean to you?

Lending may not be as easy as it used to but the good news is if you have a mortgage that you got into in 2003 that is adjusting soon, your rate very likely may not go up. In fact depending on your mortgage your rate may still be lower than current rates. While most people don't want to stay in an adjustable rate mortgage or loan that is only fixed for a year at a time, at least it gives a chance to refinance into a longer term fixed loan.

On the positive side this market is ripe with opportunities. You know what they say "Buy low, sell high"! Well if you are looking at purchasing whether it be a new home or business, now could be an incredible opportunity if you have the money. Many business savvy customers are pulling out cash now in preparation to buy up investments at pennies on the dollar.

In this market Cash is King! There is a reason the rich get richer and the poor get poorer in these markets. So we can all complain about the losses in this economic downturn or you can put your resources to use and take advantage of what is happening!

Bull markets don't go up forever and likewise bear markets don't go down forever.

Show me the money!

Their are plenty of half price deals out there. I had a bank owned home in good condition that went on the market two weeks ago in Altadena for $249k. We had 10 offers in the first two days. On an FHA loan with only 3% down ($7,470) your payment including taxes is $1,917 . Once you factor in an estimated tax savings of $464 a month (based on a 35% tax bracket/ $15,925 yearly mortgage interest write off) that gives you an effective payment of $1,453. Not bad for a property that just over two years ago was estimated at $520k according to Zillow. Now this market may be starting to look a little bit more appealing.

I have lists of these properties before they even hit the market. So if you would like me to keep you up to date just shoot me an e-mail and I will put you on a special list. Just remember you must have an approval letter from me in order to submit an offer on any of these. I handle all of the REO's/Bank owned properties in the area.

Special Programs and Pricing

-We have a "Super Credit" program for non-conforming loans (729k+). Rates are currently in the low 6% range on this program which allows some of the best rates we have seen in a long time on the larger loan amounts. ( 720 fico and <75%>
-High Balance conforming 417k to 729k still in effect until Dec 31st. Take advantage of lower conforming rates at higher loan amounts.
- 100% financing on VA loans for anyone who was in the military or a qualifying reservist.
-FHA Only 3% down required through the end of the year.

Now is the time to take advantage. Don't wait until its to late, many programs are only good through the end of the year. Have your friends, family members or borrowers give me a call for a pre-approval or evaluation at no cost to them.

As always feel free to contact me anytime!

Best Regards,

Steven Lazerus