Jake Planton's blog

The Next Wave: Part 2

Jake Planton (www.JakePlanton.com) — Tue, 20 Apr 2010 12:54:52 -0700

Yesterday I wrote about how there is this HUGE supply of homes that are not on the market, but are awaiting banks to put them on the market, the 'shadow inventory.' I just read this article from Diana Olick at CNBC,article here, about how much there really is. She used an example of the DC housing market. There is a reported 5.1 month supply in DC. But, if you add in the estimated 'shadow inventory,' you get a 13.2 month supply. That is what we should be worried about.

Great article from Diana.

The Next Wave.

Jake Planton (www.JakePlanton.com) — Mon, 19 Apr 2010 14:42:02 -0700

The end of the first time home buyer tax credit is right around the corner. Lenders, realtors, and clients are scrambling to get into contracts, and get the process moving. The tax credit has created a lot new customers, but is it enough to sustain after the credit goes away? That is a hard one to say for sure. What is known, is that there are a lot of homes that are sitting on the sidelines. That will be the story of 2010.

The graph below shows how many homes are late on their mortgage, but have not started the foreclosure process. Crazy, huh. That is why I hold to my prediction, below.

Homeowners late on their mortgage, but foreclosure has not started

My prediction? Once the tax credit goes away, the average price for a new home will drop at least $8,000. And, the price drops will continue as Fannie/Freddie release the homes they have sitting on their books. Below is a great chart from Keeping Current Matters. This is a great real estate blog that I follow. I recommend reading it.

It may be a good thing for buyers if prices drop more, but a bad thing for those selling, or trying to refinance. Keep in mind though, buyers, that a price reduction of $20,000 is negated by an interest rate increase. And, folks, that is where things are headed. Up.

More info on www.JakePlanton.com

Realtor RESPA Presentation-What do you all think?

Jake Planton (www.JakePlanton.com) — Tue, 02 Feb 2010 12:03:21 -0800

Tomorrow I will be doing a presentation on the RESPA changes at a local real estate company. I would love to hear your feedback on it. Thanks all!!

RESPA Changes at a Glance

The GFE

Definition of Application: 6 minimum pieces of information make up a mortgage ‘application:’
1. Property Address
2. Loan Amount
3. Estimated Value
4. Borrower Name
5. Social Security Number
6. Income
7. JUST ADDED: Anything else deemed necessary by the originator. (WHAT?!?) Very Vague

Timing. The GFE must be provided within 3 business days after an application is received (unless it is denied or withdrawn). When a GFE is issued, it is assumed that all components of an ‘application’ have been received.

Collecting Fees. Prior to issuing a GFE, the only fee that can be collected is a credit report fee.

Top of the Estimate. Should have all the information of the originator and all the info on the borrower, with property address.

Important Dates. Numbered 1-4.

The interest rate that this GFE is good for. This line, we are being told, is to be either the end of a lock period, or to be left N/A. As we all know, rates are changing on us about every 5 hours.
This line is for the date when all other settlement charges are good through. This needs to be at a minimum 10 days.
Number of days the lock is good for.
How long before settlement do they have to lock.

Summary of Loan. Pretty straight forward here. It outlines the terms of the loan. Loan amount, the loan term (30 years, 15 years), the interest rate, and the monthly payment (including interest, principal, and mortgage insurance). This does not include taxes/insurance if it is in the monthly payment.

A + B. This is where it totals up all the costs from page 2, and shows the amount of closing costs.

PAGE TWO

Your Adjusted Origination Charges.

The origination charge is going to be one of the hardest things for our clients to understand. This box is the entire cost of originating the loan.

This includes:

Lender fees (underwriting)
Application Fee
Processing fee
Loan Origination Fee (broker fee)
Any rebate from the lender to the broker.

This number is going to look inflated, because of that rebate aspect to the charge. But, that rebate will be credited back to the borrower in section 2. Box A is the cost to the borrower, after the credit for lender rebate has been taken out.

Charges for All Other Settlement Services.

This box you will find the appraisal fee, the credit report fee, and mortgage insurance. These charges have a 10% variance. We are being told to pad these fees in case a 442 needs to be done, or some other un-foreseen cost. You may see this number come out higher, just in case.

What does this mean for your clients??

The new GFE does not have the full PITI payment (??)

The new GFE does not have the cost to close (??)

The new GFE does not reflect the earnest deposit or seller credit (confusing??)

They should give the title/escrow fees or contact info immediately to the lender once in contract so we can stay within the 10% tolerances. (This is KEY. As soon as you get this info, pass it on to the Escrow will need more time to prepare HUD to compare fees from GFE to the HUD statement. (More time needed per transaction possibly).

Each lender may have a different ‘estimate’ to give their clients that may make it easier to understand.

Rate Update

Jake Planton (www.JakePlanton.com) — Tue, 02 Feb 2010 12:01:18 -0800

There are so many factors on EVERY loan that it can be dangerous to quote. Keep in mind that rates can change hourly on busy days, so this is just a snap shot in time. I want to try and show you how things are moving through each day. Here are the factors I will be quoting:

Purchase, 20% down, owner occupied, single family residence, full documentation, 740 Fico score, $325,000 purchase price, and a loan amount of $260,000, taxes and insurance as part of monthly payment, 21 day lock. (If any one of these factors are different, it COULD change the below rates. This is just a barometer of the current rates).

30 Year Fixed with 1% in origination fee : 4.750% (APR 4.935%) ~ Priced 0% in origination fee: 5.000% (APR 5.099%).

5/1 ARM—3.625% (!!!) with 1% in origination, APR 3.789%

And for people putting down 5%? They still look good for you!
5% down, 30 year fixed—5.000% ( APR 5.078%)!!! That is with .500% in origination. Don't believe it when people say that you have to put down 10, 15, or even 20%!

For loans that are at $417,001+, interest rates/guidelines are tighter. Here is one of the best priced 30 year fixed rates out there:

Purchase, 20% down, owner occupied, SFR, full documentation, 740 FICO+, loan amount of $500,000.

30 year fixed with 1% in origination fee: 5.500% (APR 5.685%)

5/1 ARM- (different lender than 30 year fixed) with 1% origination fee, 4.650% (APR 4.781%)

ALL mortgage professionals are REQUIRED by LAW to report APR. The real way to compare lenders is to look at RATE and ORIGINATION fee, from the two lenders, on the same day, at the same HOUR . Keep that ALL in mind.

Keep in mind that I will compete for YOUR business, and I would love to compete!

Speaking of competing….

I thought I would try something new, and give you a comparison of what my biggest competition is offering today. The main thing when shopping for an interest rate is to look at the rate offered, and then how much in origination the lender is charging. I think that the lenders are actually under-disclosing APR (they can never get it right). But, I am still beating them all!

Purchase, 20% down, owner occupied, single family residence, full documentation, 740 Fico score, $325,000 purchase price, and a loan amount of $260,000, taxes and insurance as part of monthly payment, 30 day lock. (If any one of these factors are different, it COULD change the below rates. This is just a barometer of the current rates). Rates as of 12/15/09, 11 AM.

	Rate	APR	Number of Pts
Wells Fargo	4.875%	5.065	1%
BofA	5.00%	5.153%	1.153%
US Bank	4.875%	5.029%	1%
ME	4.750%	4.935%	1%
OnPt	5%	5.141	1%

Rate Update-01/26/2010--Still smoking the banks....

Jake Planton (www.JakePlanton.com) — Tue, 26 Jan 2010 11:07:55 -0800

30 Year Fixed with 1% in origination fee : 4.750% (APR 4.935%) ~ Priced 0% in origination fee: 5.000% (APR 5.099%).

5/1 ARM—3.750% (!!!) with 1% in origination, APR 3.921%

And for people putting down 5%? They still look good for you!
5% down, 30 year fixed—5.000% ( APR 5.189%)!!! That is with 1% in origination. Don't believe it when people say that you have to put down 10, 15, or even 20%!

For loans that are at $417,001+, interest rates/guidelines are tighter. Here is one of the best priced 30 year fixed rates out there:

Purchase, 20% down, owner occupied, SFR, full documentation, 740 FICO+, loan amount of $500,000.

30 year fixed with 1% in origination fee: 5.500% (APR 5.685%)

5/1 ARM- (different lender than 30 year fixed) with 1% origination fee, 4.650% (APR 4.781%)

Keep in mind that I will compete for YOUR business, and I would love to compete!

Speaking of competing….

Purchase, 20% down, owner occupied, single family residence, full documentation, 740 Fico score, $325,000 purchase price, and a loan amount of $260,000, taxes and insurance as part of monthly payment, 30 day lock. (If any one of these factors are different, it COULD change the below rates. This is just a barometer of the current rates). Rates as of 12/15/09, 11 AM.

	Rate	APR	Number of Pts
Wells Fargo	5.000%	5.191	1%
BofA	4.875%	5.045%	1%
US Bank	4.875%	5.029%	1%
ME	4.750%	4.935%	1%
OnPt	5%	5.155	.875%

If you are fiscally Conservative...you should be SCREAMING for a higher DP for FHA...

Jake Planton (www.JakePlanton.com) — Wed, 20 Jan 2010 12:57:42 -0800

I consider myself to be fiscally Conservative, and socially very Liberal. With all of the changes coming down the line, I am blown away by the industry's response to these changes. I also know that a lot of the industry is very Conservative. In my mind, those two things do not match together.

How can one be conservative, and NOT want people to have more money into a home? Isn't being conservative all about saving money, lowering spending, and not over extending oneself?? That is what a higher down payment means, in my mind. That a person has not gone out to eat for a few months, brewed coffee at home, and saved the extra little bit to purchase a home.

So, if you are fiscally Conservative, you should be SCREAMING for them to increase the minimum down payment....right??

Rates for today-Are retail banks even TRYING to compete anymore?!

Jake Planton (www.JakePlanton.com) — Tue, 19 Jan 2010 12:44:44 -0800

30 Year Fixed with 1% in origination fee : 4.750% (APR 4.935%) ~ Priced 0% in origination fee: 5.000% (APR 5.099%).

5/1 ARM—3.750% (!!!) with 1% in origination, APR 3.921%

For loans that are at $417,001+, interest rates/guidelines are tighter. Here is one of the best priced 30 year fixed rates out there:

Purchase, 20% down, owner occupied, SFR, full documentation, 740 FICO+, loan amount of $500,000.

30 year fixed with 1% in origination fee: 5.500% (APR 5.685%)

5/1 ARM- (different lender than 30 year fixed) with 1% origination fee, 4.650% (APR 4.781%)

Keep in mind that I will compete for YOUR business, and I would love to compete!

Speaking of competing….

Purchase, 20% down, owner occupied, single family residence, full documentation, 740 Fico score, $325,000 purchase price, and a loan amount of $260,000, taxes and insurance as part of monthly payment, 30 day lock. (If any one of these factors are different, it COULD change the below rates. This is just a barometer of the current rates). Rates as of 12/15/09, 11 AM.

	Rate	APR	Number of Pts
Wells Fargo	5.125%	5.318%	1
BofA	4.875%	5.025%	.875
US Bank	4.875%	5.029%	1
ME	4.750%	4.917%	1
OnPt	5%	5.166%	1

Short Sale Fraud

Jake Planton (www.JakePlanton.com) — Tue, 19 Jan 2010 11:26:37 -0800

I have been following this story on Diana Olick's blog from CNBC. My question to all of my realtor buds on here is if they have seen this in any short sales they have worked on? The second lien holder asking for $$ from the transaction, but making it NOT on the HUD-1? Anyone see this in their work?

http://www.cnbc.com/id/34877347/

RESPA Rule Changes

Jake Planton (www.JakePlanton.com) — Tue, 22 Dec 2009 13:21:48 -0800

I just recieved this list of FAQ's on the new RESPA changes. It is a lot of information, but I think they are doing a great job in simplifying it (as much as possible) for people. Lots of changes coming down the line! Be ready, knowledge is power!

December 15, 2009

RESPA Webinar FAQ’s

Q: When delivering a GFE to a borrower, how do we count the 3 days (business or calendar)?

A: Per RESPA you count business days. A business day for your business is the days that your business is open to conduct most of the business functions.

Q: Can we disclose a higher YSP and receive a lower YSP after locking?

A: Per RESPA you must quote the Rate/YSP exactly as the Lender quotes to you. What you quote in Lender credit can not decrease (Question has been submitted to HUD for clarification).

Q: Can you offer an alternative Fee Sheet in lieu of a GFE to a borrower who is shopping you?

A: Yes, you may offer a Fee breakdown to a borrower in lieu of a GFE. If the borrower has made application (provided you with the 6 items) you must issue a GFE w/in 3 days. If the borrower is just asking prequalifying questions you can issue the fee breakdown.

Q: If we pull a credit report during an interview, would that pull date constitute a GFE to the client?

A: Not unless you have the 6 items RESPA considers an application.

Q: Is the 10% tolerance up and down or just up?

A: The fees may not increase more than 10%. Fees may decrease but broker/lender must re-disclose.

Q: On a TBD, do I need to provide a GFE even though I don’t have a property address?

A: No. We recommend you do not provide a GFE but rather a Fee Sheet until application has been made. USA will not accept a TBD file if there was a GFE issued to the borrower.

Q: What if inaccurate information was supplied by the borrower before the GFE?

A: You may adjust your GFE line items that were affected by the inaccurate information.

Q: What happens if the lock expires and rates have gone up? Is that a change circumstance?

A: yes. Items that are associated with the rate can be changed.

Q: We deal with foreclosures and short sales. How should we disclose escrow fees when we don’t have an option?

A: Just like all purchase loans, the seller selects the escrow company. You will need to request the name of the escrow company the seller (bank) will utilize.

Q: What if I take an application in December but it does not close until January. Do I need to use the new GFE?

A: You may use the old GFE….? You may use the old GFE if you disclose in December. If the loan has to be re-disclosed in January we will do so on the new GFE. If the loan doesn’t close by January 31^st we will re-disclose it on the new GFE.

Page 2

Q: Can you please review the 3 day disclosure period again?

A: RESPA now considers the Application date when the Broker has the 6 required items. The lender now must disclose within 3 days of the brokers Application date its not, the date the broker submits the loan to the lender.

Q: If I take a TBD application in December and the property is identified in January, do I need to use the new GFE?

A: Yes, you must use the new GFE in this scenario.

Q: If you must re-disclose after 12/31/09, do you have to use the new GFE?

A: No. You may use the old GFE as long as you close by 1/31/10. As a company we are re-disclosing on the new form.

Q: Many of the loans I have are outside the city limits so providers may charge extra. How do I disclose those on my provider list?

A: Since you will have a property address, you should be able to give actual costs.

Q: What happens if you have to extend a lock reducing the YSP?

A: If you extend a lock it is a change in circumstance. The lender credit can’t decrease and the block 1 charges have a zero tolerance. (I have a question into HUD on this)

Q: What if you lock the loan and you are now getting more YSP?

A: You must re-disclose the increase but it will be a broker credit on the final HUD-1. Block 1 fees can not increase.

Q: Where is the final total the borrower will have to bring to the closing table on the new GFE?

A: The new GFE only discloses loan costs so it will never match the final HUD for borrower funds to closing.

Q: What if the YSP is lower than disclosed? Does the borrower end up with the extra?

A: yes, the credit can not be decreased. (submitted a question to HUD on this)

Q: What if you have a borrower just trying to get a pre-qual to find out how much they can afford? Can I give them a list of potential fees until they identify a property address?

A: Yes, that is the best way to proceed with TBD pre-qual loans.

Q: What if both parties request a home inspection and the report states repairs that need to be made? Can I re-disclose and not have to abide by the 10% tolerance?

A: If the inspection is not a condition of the loan it does not go on the GFE. IF you disclose it you are held to the 10% tolerance and MUST give a provider list to the borrower.

The original link.

New Respa Rules Coming!

Jake Planton (www.JakePlanton.com) — Tue, 08 Dec 2009 15:21:14 -0800

Hello all of my favorite real estate minded folks!

I wanted to pass along some info on the new RESPA rules coming down the line on January 1st. It is called RESPA reform. We had HVCC, we had HERA, and now we have RESPA reform.

What is it?

The objective of this new reform is to help clients reduce the surprises at the closing table. There are variances that are set up to make sure that the fees do not increase beyond a certain level from the time the new GFE is received, to closing.

How does this affect my clients?

The new GFE is set up so that once the number is put into the origination box, it can not change (there is a box that says 'this estimate is good from X to X). This also has whatever rebate the lender will be paying the broker, but shows that the broker will be crediting that rebate back to the borrower, so the settlement costs are lowered by that rebate amount. It might get very confusing for clients, and it is our job to set up those expectations in the beginning.

Clients also will not really be able to call around and get these estimates, they are only supposed to be issued once the originator (me) gets six items: 1) Name 2) Address of property 3) Social security number 4) Income 5) Loan amount and 6) Estimated value of property. That is right, we can not issue the new good faith until there is a property, so those shopping for a home can no longer get a 'to be determined' estimate. All of us lenders are looking for ways around this, to show the costs of the loan, without issuing a true GFE.

Like I said, this might get very confusing for your clients, it is up to us to make sure our clients are expecting these new things when talking to lenders. Keep in mind, as well, that retail banks are not subject to disclose all of these fees (darn banking lobby won on this one), so keep in mind that us brokers are the only ones that are really disclosing EVERYTHING.

There will be lots more questions, I am sure, as this rolls out. I am more than happy to help you or your clients with any questions they may have. Feel free to give me a ring.

All in all, this is going to help our clients from getting surprised at closing. So, it is a good thing :).

--
Jake Planton

Proud loan officer with Rose City Mortgage

(C) 503-475-3788
JakePlanton.com

Rate Update-4.5%!!

Jake Planton (www.JakePlanton.com) — Tue, 24 Nov 2009 12:03:03 -0800

30 Year Fixed with 1% in origination fee : 4.500% (APR 4.664%) ~ Priced 0% in origination fee: 4.750% (APR 4.829%).

5/1 ARM—3.625% (!!!) with 1% in origination, APR 3.778%

And for people putting down 5%? They still look good for you!
5% down, 30 year fixed--4.875% ( APR 5.011%)!!! That is with 1% in origination. Don't believe it when people say that you have to put down 10, 15, or even 20%!

For loans that are at $417,001+, interest rates/guidelines are tighter. Here is one of the best priced 30 year fixed rates out there:

Purchase, 20% down, owner occupied, SFR, full documentation, 740 FICO+, loan amount of $500,000.

30 year fixed with 1% in origination fee: 5.750% (APR 5.895%)

5/1 ARM- (different lender than 30 year fixed) with 1% origination fee, 4.650% (APR 4.781%)

Keep in mind that I will compete for YOUR business, and I would love to compete!

What Homes are selling for in PDX

Jake Planton (www.JakePlanton.com) — Mon, 16 Nov 2009 10:00:00 -0800

Here is a great list of what homes are selling for in the Portland Market. If you compare this to days on market, you can see that the lower valued homes are flying off the shelves, but the larger/more expensive homes are staying on the market. This is due, in part, to how difficult it is to get a jumbo mortgage.

$488,300 & $395,000 = Lake Oswego, West Linn
$427,000 & $352,600 = West Portland
$372,200 & $350,000 = NW Washington County
$317,800 & $287,900 = Tigard, Tualatin, Sherwood, Wilsonville
$289,200 & $255,000 = Northeast Portland
$286,800 & $260,000 = Milwaukie, Clackamas, Happy Valley
$282,100 & $249,500 = Oregon City, Canby
$247,100 & $228,000 = Hillsboro, Forest Grove
$243,400 & $216,000 = Southeast Portland
$241,400 & $225,000 = Beaverton, Aloha
$235,400 & $230,000 = North Portland
$221,900 & $210,000 = Gresham, Troutdale

More on this from the blog: http://www.jakeplanton.com/home-sales-2/1097/

Only half way done with price reductions...?

Jake Planton (www.JakePlanton.com) — Mon, 09 Nov 2009 09:57:52 -0800

I just read the blog below, talking about how we are only about half way through the values of American homes going down. I am very skeptical of this blog, but they do make some good points. I would love some input from all the pros here. Why is this wrong? We did have 'fake' demand for so long, and maybe the tax credit is pulling all the demand, and values, up artificially. Shouldn't we be letting prices go back to their natural place? Interested in your opinions...

http://newobservations.net/2009/11/08/conservative-property-index-predicts-we-are-less-than-half-way-through-fall/

Tax Credit Passed

Jake Planton (www.JakePlanton.com) — Fri, 06 Nov 2009 14:35:04 -0800

The tax credit has just been extended, and expanded. You all know how I feel about it, economically it is not a smart idea, but it is what it is. I will help anyone that can qualify get it. Just let me know!

From the National Association of Realtors:

Who Qualifies for the Extended Credit?

First-time home buyers who purchase homes between November 6, 2009 and April 30, 2010.
Current home owners purchasing a home between November 6, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

If you or your client purchased a home between January 1, 2009 and the date the bill is signed by President Obama, please see: 2009 First-Time Home Buyer Tax Credit.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer's Credit Amount Determined?

Each home buyer’s tax credit is determined by tow additional factors:

The price of the home.
The buyer's income.

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 6, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 5, 2009, please see 2009 First-Time Home Buyer Tax Credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

Part of NAR's Right Tools, Right Now Initiative
Resources to help you better understand and promote the value of the Home Buyer Tax Credit to consumers are available for FREE or AT COST as part of NAR's Right Tools, Right Now initiative.

In This Section

The Basics: Extended Home Buyer Tax Credit

How to Get: Extended Home Buyer Tax Credit

2009 First-Time Home Buyer Tax Credit

How to Get: 2009 First-Time Home Buyer Tax Credit

Timeline

NAR Tax Credit Resources

Tax Credit Comparison Chart (PDF: 455K)

Home Buyer Tax Credit FAQ (PDF: 596K)

Tax Credit as Down Payment on FHA Mortgage Flyer (PDF: 220K)

Video News Brief: NAR Urges Tax Credit Extension

REALTOR® Magazine Webinar, Q&A, and Quiz

Related NAR Information

Making Home Affordable Program

American Recovery and Reinvestment Act

Tax Credit Question

Jake Planton (www.JakePlanton.com) — Thu, 05 Nov 2009 18:27:07 -0800

There is A LOT of confusion about the tax credit, and the move up buyers part. Does ANYONE know if the people moving up have to sell their current home before they can buy a new one? Mixed answers here...

HUD delays FHA audit

Jake Planton (www.JakePlanton.com) — Wed, 04 Nov 2009 10:39:00 -0800

This is interesting. HUD has delayed the results of an audit on the FHA reserve fund. FHA has an important role to play, but when it goes after subprime clients, this is what you are going to get.

http://www.nationalmortgagenews.com/premium/archive/?ts=1257354000

Rate Update for Portland, OR

Jake Planton (www.JakePlanton.com) — Mon, 02 Nov 2009 13:26:51 -0800

Today's rates for Portland, OR.

Good Morning all! Rates are still smoking. It is November!

30 Year Fixed with 1% in origination fee : 4.750% (APR 4.883%) ~ Priced 0% in origination fee: 5.000% (APR 5.046%).

5/1 ARM—3.750% (!!!) with 1% in origination, APR 3.896%

And for people putting down 5%? They still look good for you!
5% down, 30 year fixed–4.990% ( APR 5.143%)!!! Don’t believe it when people say that you have to put down 10, 15, or even 20%! AND, you DO NOT have to go FHA!

For loans that are at $417,001+, interest rates/guidelines are tighter. Here is one of the best priced 30 year fixed rates out there:

Purchase, 20% down, owner occupied, SFR, full documentation, 740 FICO+, loan amount of $500,000.

30 year fixed with 1% in origination fee: 5.750% (APR 5.895%)

5/1 ARM- (different lender than 30 year fixed) with 1% origination fee, 4.650% (APR 4.781%)

Keep in mind that I will compete for YOUR business, and I would love to compete!

Tax Credit

Jake Planton (www.JakePlanton.com) — Sun, 01 Nov 2009 18:11:49 -0800

Are we kidding ourselves with this tax credit? Home prices have to fall naturally. We can not re-inflate the bubble..we SHOULDN'T reinflate the bubble. People lost value in their homes, it sucks, but we have to come to terms with that, and not prop up the market with dumb tax credits.

New Home Sales VS Existing Home Sales

Jake Planton (www.JakePlanton.com) — Thu, 29 Oct 2009 12:44:20 -0700

Things are not as rosy as well think...

[N]ew home sales are far more important for employment and the economy than existing home sales. When an existing home is sold, the housing stock doesn't change, and the only direct contribution to the economy are the transaction costs. When a new home is sold, the housing stock of the nation increases, and there is a significant amount of spending on material and labor.

During the housing bust, new home sales fell much further than existing home sales (as a percent of sales). I've jokingly referred to the difference in percentage declines as the "Distressing" gap, because of all the distressed sales of existing homes.

His bottom line:

The ratio could decline because of an increase in new home sales, or a decrease in existing home sales - I expect a combination of both.

Stop worrying about the tax credit. Raising rates should be what we are worried about

Jake Planton (www.JakePlanton.com) — Wed, 28 Oct 2009 19:16:48 -0700

Just found this post online, and this is really what realtors, lenders, and most importantly, clients should be worrying about. The Fed is going to stop buying mortgages, rates WILL go up at least a full point. This is what we should be worrying about.

http://curiouscapitalist.blogs.time.com/2009/10/27/are-housing-prices-about-to-start-tumbling-again/#ixzz0VGSt1vTE

Tax Credit Thoughts

Jake Planton (www.JakePlanton.com) — Wed, 28 Oct 2009 18:25:56 -0700

I am in the camp that they should not extend the tax credit. The numbers just do not support it, and I could link to articles on it. But, I am not going to do that right now (I can send you all some if you would like).

I am not trying to piss any realtors off, because they are my partners, but why is it that of all those I have spoken too, read their blogs, emailed with, ONLY realtors are for the tax credit extension? And when I say that, I mean those in the industry, lenders, title people, etc...why is that??

Let me reiterate this point, I am not trying to cause a fight, it is what it is, but I am curious.

Frontline from last night

Jake Planton (www.JakePlanton.com) — Wed, 28 Oct 2009 16:50:36 -0700

Watching Frontline from last night. So happy that I have great friends/family/business. So many sad stories from so many different places.

http://www.pbs.org/wgbh/pages/frontline/closetohome/view/

Tax Appeal

Jake Planton (www.JakePlanton.com) — Wed, 28 Oct 2009 14:04:25 -0700

Hey all!

I just got this great email from one of my co-workers for those of us that want to appeal our property taxes. Good info for all!

Hey, everyone. For those of you who think your property tax bill is too high (um, all of us?!), here's a link to Multnomah County's appeal procedures. I've appealed my taxes successfully in the past using an appraisal, but per the website, it looks like a comp check with photos would suffice. It's pretty much what we do upfront for clients when they don't know their home value..plus we can look like stalkers - or appraisers - by photographing houses in our neighborhoods. You have till Dec 31 to file the appeal, but there's sure to be a crush of requests, so the earlier, the better.

http://www2.co.multnomah.or.us/NewPublic/EntryPoint?ch=cda46750fddd7010VgnVCM1000003bc614acRCRD&ct=06081d0fcd667010VgnVCM3709240ac614acRCRD#TYPES%20OF%20EVIDENCEFor

for Washington County: http://www.co.washington.or.us/AssessmentTaxation/AppraisalAppeals/PropertyTaxAppeals/index.cfm

for Clackamas County: http://www.clackamas.us/tax_appeals/

Good luck!

Not worth it to refinance?

Jake Planton (www.JakePlanton.com) — Wed, 28 Oct 2009 13:44:42 -0700

I have a client right now that contacted me about refinancing. He wanted to get out of his interest only loan, a first and second. I took a look at the situation, and I honestly do not think the value is in the home to combine the two loans. Also, all of the costs (pre-paids/CC's) would equal about $11,000. After I did some research, I told him that it might be worth it to just pay a couple hundred each month on his loan, so he paying on the principle, rather than do a full refi, just to get out of the interest only feature.

That is when he told me that he was also talking to Bank of America, and they said they had no doubt about the value, and that they would do the refinance. With a $400 application fee, of course. I told him that I did not want him to be taken advantage off (up front costs in my mind, before knowing they could do the loan, are just wrong).

He agreed with me, and said he wants to go forward with me. So, I told him I would start the process, and it would all hinge on that appraisal. Now that I have done quite a bit of work on it, he is having second thoughts, about the cost, and the value of the home. I reiterated what I had told him in the beginning, and am waiting to hear back.

How many others have situations like this? What would you do?

Q3 Foreclosures~What recovery?

Jake Planton (www.JakePlanton.com) — Tue, 27 Oct 2009 12:33:29 -0700

I just found this amazing info piece about the foreclosures in OR, and across the country. It really makes you wonder, 'what recovery?' So, lots of people are losing their homes, home prices seem to be stabilizing, the tax credit is about to expire, and the Fed will STOP buying mortgage soon...never a dull day in the real estate world.

My fear from these numbers is that there is going to be a glut of inventory soon enough. Where are all these homes going? The banks do not want to flood the market with homes, or else they risk cutting their values on other homes. So, I ask again, where is the recovery for the rest of us.