Monday, April 12, 2010

Used To Be A Dirty Word


Hi People.
Feeling lazy today (That feeling is not exactly exclusive to today) so my friend Sam Gardner of Gardner Mortgage said he'd pick up the slack. Off to do some San Diego fun.
Enjoy & God Bless.

Monday morning greetings,


It continues to be a Planet of the Apes out there in the mortgage world as the industry continues to struggle with changing guidelines. The good news is there does appear to be light at the end of the tunnel.

Positive changes we have seen recently are the re-appearance of mortgage insurance companies (PMI) and the willingness to insure loans with as little as 5% down payments. I never thought that I would welcome mortgage insurance but my arms are open and I'm ready for a hug! The only options for borrowers with small down payments (or minimal equity for those seeking to refinance) over the past couple of years has been FHA or VA loans. Another positive move is that B of A recently announced that they will be working with some borrowers who are under water on their loans by reducing principal balances and not just modifying loan terms. This I believe will do more to stabilize the housing market than any of the other well intentioned but poorly executed government plans. You can lower someone's house payment with a loan modification but history has shown this has not worked well for lenders who offered this option or to the few homeowners who qualified. The best way to keep people in their homes is to reduce their principal balance. This gives people a reason to stay in their house, maintain pride of ownership and helps keep neighborhoods intact. This action would eliminate many foreclosures, help stabilize prices and allow more families to take advantage of historically low rates. Families, who are able to save money by refinancing, pump this money back into the economy, helping to create jobs and stimulate growth.

Rates:

Rates continue to hover in the 4.75% - 5.00% range for 30 year loans and 4.25 - 4.50% range for 15 year mortgages. The government has continued to keep rates low for fear of slowing the economic recovery which continues to show light in some areas. Trust me, this too shall pass and both rates and inflation (low rates arch nemesis) will rear their ugly heads again. It is still a great time to reduce your rate, lower your monthly payment and consolidate debt. Home prices in most areas continue to be at or near their most affordable levels in years and there is still time to take advantage of the government’s 1st time buyer’s credit.

As always, please let me know if I can answer any questions or help with anything. Have a great week.

Sincerely,

Sam Gardner

Gardner Mortgage Inc.

2667 Camino Del Rio South #106

San Diego, Ca. 92108

Office (619) 497-6125

Cell (619) 804-2417

The best compliment I can receive is a referral to your friends and family!