Eleanor's RTP Blog

Use What You Learned on 9/11 To Help Today!

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Fri, 10 Oct 2008 07:31:12 -0500

"Macy's says that the Consumer might be having some hard times."

That could be the "No Duh" quote for the day. There are TONS of people who are frightened by what's going on in the Global Economy. There are people in their 70s and 80s who are on fixed income who have truly had their worlds rocked... and their children might be some of the folks who have been laid off, lost their homes, or at the very least had their own 401K close to being wiped out.

Now is the time to remember the lessons of 9/11. On 9/11 we knew that everyone we met that day was sad and frightened. Today is no different.

Our leaders need our prayers. This is a time to be at Church early with a warm smile. We know that the Paulsons and Bernanke's all over the world will be working yet another weekend to figure this out. They've gotten us this far - and with the help from other very bright people in other countries, we will see this crisis end too. Bank's are closed on Monday - so fortunately they have a long weekend!

Our familiy and our friends need hugs! Our children, our parents, our brothers and sisters are all worried. We need to reach out and let them know that they are loved, and thought of. We're in the Real Estate Business. We've been figuring out how to make a living in a "depressed" environment for over a year! We've still made money!

Today is the day to be out of the house, on the phones, connecting to every person we can to let them know it's going to be okay- and this could be the end of the crisis. From this day going forward - all assets could be going higher - INCLUDING REAL ESTATE.

If you need a smile or a hug, or an encouraging word - call us! (919-649-5057 is my cell number) We're headed out to spread the word:

TOWN HALL MEETING at MERIDIAN RESIDENTIAL on October 15, 9:00am. Come find out what the new underwriting guidelines and credit requirements will mean for your business! Let us answer your questions about how USDA and FHA and VA work. Come network with other agents! Let's work on our 2009 business plan together! Please RSVP so we'll have enough chairs!

Solid Good News about Existing Home Sales! Yippee!

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Wed, 08 Oct 2008 15:32:20 -0500

Sarah Eubanks came across some Economic GOOD NEWS on a day when we need it! Maybe we're nearing the bottom!

Via Sarah Eubanks ~ Preferred Oregon Loan Consultant & Notary Public:

In today's economic turmoil and heated political scene, we rarely hear news that is uplifting or encouraging. This morning - today - is not any different. I wanted to share with you a glimmer of hope which I found on the MSNBC website today.

While researching the emergency rate cut enacted by the fed this morning, I stumbled across this article claiming, "Breaking News" , but oddly I have not seen anything about it on the big three networks. So...are you ready for the good news...the hope?

August's Existing Home Sales had a very solid increase in the month of August. While the expectation was for another decline of 1.8%, the buyers started buying. Not only were the economists wrong in their expectation of a decrease, they were blown out of the water with an increase of 7.4%. The article, as brief as it is, goes on to tell you that the reading is the highest since June of 2007 and 8.8% higher than one year before.

While I am not espousing that the hard times are over, I do think that we need to spread the news. I believe that the media is largely responsible for the mess we are in now. Sure, government has played it's roll in the demise. But the media are the ones who fuel the fear of the masses. If we can get out and encourage buyers, sellers, and borrowers that now is a great time to buy, we can help to stimulate the economy. We can make ourselves part of the media. We have voices too. And Active Rain has established itself as a major influence in the world of Real Estate both nationally and locally.

Go spread the good news. The hope. As I do what I can to join the fight, I will be watching, reading, and writing (finally).

Fed Cuts Rates - Mortgage Rates NOT Dropping!

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Wed, 08 Oct 2008 07:02:01 -0500

My email to friends this morning says, "LOCK 'EM IF YOU GOT 'EM!"

GREAT OLE' BIG DISCLAIMER: We are in a little different situation than most of our competitors, because we can allow folks to float their rate down until a few days before closing. If you are working with a "bank" like Wells Fargo, of BofA you might want to wait a few days before locking...

Okay- so the Fed worked with other Global Central Banks and coordinated a rate cut.

Our Fed rates went from 2.0 to 1.5.

If you're in the market for a mortgage, you might think that mortgage interest rates are diving today too! Hold up! As the news has been announced, I've been watching glued to CNBC, and the 10 yr TB (which mortgage rates loosely follow) has gone UP on the news!!!

Remember - the Stock Market took a bath during the last few days. TONS of money came "off the table" and as it's reinvested, it probably will not come back into BONDS. Mortgages (as we all now know) are sold as BONDS. It could be Monday or Tuesday before we know if mortgage rates are going to have any impact from this move.

PIMCO - at times the largest purchaser of mortgage back securities, and where Greenspan works - thinks that if the Fed lowers rates ANOTHER 100 to 50 bps, we will see a significant lowering of mortgage rates. They think this could spur on more purchases - and will allow folks to refinance. CAUTION! IF the Fed does lower again in the coming months - it will be a QUICK, SHORT period of time under 1% Fed rates. Much of the current mortgage problems are blamed on rates after 9/11 being TOO LOW.

If you are a consumer thinking you will purchase real estate at the next Fed Cut (if there is one), go see a lender TODAY. Let us help you get your scores up NOW! Underwriting Guidelines are getting tougher on October 10th, so having GREAT scores is important... and in most cases it's not that painful!

So be vigilent, now is the time to be in FULL CONTACT with your lender! If you are going to be a lender in this market - you need to be one of the smartest guys in the room!

A Year Later - How ActiveRain Changed My Life

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Tue, 07 Oct 2008 07:54:54 -0500

Last weekend marked my one year anniversary on Activerain. I can honestly say...it's changed my life, and the way I look at things. It's affected my confidence, and my "self talk." I was introduced to it during an all day conference last September on "Using the Internet to Market Your Business."

I've always been skeptical about marketing plans that did not start with "networking," and up until then, I thought that meant looking someone in the eye. In our industry, tons of people make money by dialing for dollars or sending out postcards to people they've never met - but that's not the way I built my business...So I was skeptical.

Plus... I'm in the last years of 40, and I'm a complete idiot when it comes to "techie" things. I figured "techie and 50" were not very sexy, and I wasn't sure I wanted to go there!! And so I sat in that all day class where they talked about CSS and PHP and the pros and cons of "hosting your own"... and I wondered why I was there.

Then a fella' got up and started talking about how he'd "met" people on Activerain, and how you could use it to recruit, and prospect... "Thousands of people go to National Real Estate Seminars every year, and if you ask them why they go it's going to look something like:

To Learn More
To Meet People who can refer business to me

Not necessarily in that order. Well, that's what Activerain is all about - without leaving your home, or changing out of your pajamas... and it's F-R-E-E" THAT I could understand - and so with no other information, I set out to learn about ActiveRain.

I've learned about long distance friendships. Growing up in the State of North Carolina, I've got friends in other cities... but up until a year ago, most of my friends were people I'd met, eye to eye, beer suds and all. The friendships I've made on AR have been every bit as fun, deep, and revealing. I'm not talking about leaving comments for someone. I'm talking about picking up the phone and talking - text messaging a friend on a Sunday night in August when you're laughing so hard you could cry because your favorite rock station is playing all night CHRISTMAS MUSIC just because the DJ was "in the mood!" I'm talking about a friend who will help you do research on a 400 year old golf club...talk to you at night when you're worried about (fill in the blank), and have a virtual party on a Friday night - with high heels, cosmos and lots of "zingers."

I've learned about the various strategies that work (and don't work) on AR. One strategy is "Pick me to be Your Agent!" To be honest - I don't this one is a winner. Another one is to provide information for folks moving to your area, or folks looking for activities in the area - this works well for many, and flows great into Localism. Some people are just "here" on Activerain to Network, and make friends (I often fall into this group - afterall, I'm subscribed to 89 people)... and others are here to learn (techie stuff, home staging, marketing tips) or teach.

And I've learned that you need a balance. When I first came to AR, the markets were down, people in our office were depressed, real estate wasn't selling very well, people were having trouble getting loans approved... it seemed like a safe place to hide - a great place to be learning while all of that "other stuff" was going on... Well, it's a YEAR LATER, and that "Other Stuff" is still here. It's going to be here. So fortunately I've learned how to make friends (who refer business to me) AND create my own leads by writing about those things folks in my area are interested in. I've learned how to set up 3 outside sites, and I'm busy connecting all of that. I've joined Tweeple Groups, and SEO Meetup groups... and yes, I was the oldest kid in the room - but now, a year later - I can at least follow the conversation!

Maybe Slightly Techie and Leaning Towards 50 CAN BE HOT! Thanks AR!

RE Blog and Share With Friends!

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Fri, 03 Oct 2008 12:46:37 -0500

This is kinda' like a forwarded chain letter...

ReBlog Please! Tell Ten Friends And So On...

As you ask, so shall I do Midori.

Via Midori Miller-Daytona Beach Florida Real Estate Trainer:

Today Kim Wood sent me a tweet and reminded me it is Cancer Awareness Month and make sure and spread the word. This evening in my email I recieved this important message. Rather than go through my address book I decided to share with the masses. Please I encourage you to reblog this or even forward this post to your friends and loved ones.

This disease touches so many and changes lives forever..we can do the same but in a positive way!

Help me Fight Cancer...the reality is there is a good chance someone you love will be affected by this disease. Please take the time and read this email.

You never know...by following the instructions you might save a human life!

SPREAD THE WORD!

Please tell ten friends to tell ten today! The Breast Cancer site is having trouble getting enough people to click on their site daily to meet their quota of donating at least one free mammogram a day to an underprivileged woman. It takes less than a minute to go to their site and click on 'donating a mammogram' for free (pink window in the middle).

This doesn't cost you a thing. Their corporate sponsors/advertisers use the number of daily visits to donate mammogram in exchange for advertising.

Here's the web site! Pass it along to people you know.
http://www.thebreastcancersite.com/

Latest And Greatest Underwriting Changes for October, 2008

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Fri, 03 Oct 2008 12:37:58 -0500

We could think of this as the latest effort to make Main Street feel more comfortable about the "assets" we are holding in Fannie and Freddie (and I guess that extra 700 Billion too)... but anyway you look at it, mortgage lending rules are getting tighter. See that guy balancing on one foot, on a tightrope while playing the fiddle at night? He's got it E-A-S-Y!

Effective October 10, 2008 Mortgage Insurance on Investment Property is no longer available. Period, End of Story - better have 25% to put down.

MI Companies are also tightening the Debt to Income (DTI)requirements - meaning that even though we can get a 95% loan approved through the Fannie or Freddie engines with a DTI of 45% or 50% (back ratio) - we might not be able to get mortgage insurance on the loan. Most MI companies are setting the standard for high LTV loans (90 to 95) at 720.

There are still TONS of loans available - and TONS of people who qualify... it's just getting a little more tricky. You definately need to be one of the smartest guys in the room if you are going to be a lender in today's environment!

Bailout Part Deuce

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Tue, 30 Sep 2008 09:51:34 -0500

I'm with most folks. I know that we probably need the Bailout - but I don't want it. The markets are going to be better today - because it's the end of the quarter and there are somethings that have to happen, and those events will cause a temporary improvement - but tomorrow it's going to be back downhill.

I was listening to various Congress "persons" and found myself nodding my head when several said, "Paulson had a YEAR to bring this information to us!" Yep... and then I read the following in Inman News and found myself nodding again. Sorry, Pres, but I don't think this is going to be a quick, down and dirty, vote.

"Most grown-ups know that it's a mistake to ask a group to vote on an important proposal without prior discussion. You wouldn't spring something big on your PTA, your HOA or your book club and demand an immediate approval. You wouldn't ask a Cub Scout troop to vote on a field trip without some testing of the water.

Hank Paulson would. Hank has had 13 months to prepare a contingency plan in case market solutions to this crisis failed, and quietly to explore alternatives with Congress. Instead, he dumped on Congress a three-page sketch of a highly technical and questionable proposal. Tuesday's hearings in the first minutes revealed bipartisan, confused, angry and incredulous Senators, and an ill-prepared Paulson.

This man, Paulson, has not only failed to advise us in the Senate, to develop his plans with us, to find out what we can sell to a wounded nation, he is not prepared to defend his idea! I watched part of the testimony beside an experienced trial lawyer, who after 15 minutes burst out laughing. I asked what was so "darned" funny; he said, "You can always tell when a witness has lost it -- they just babble." Reports today are unanimous that one of last night's negotiating sessions blew up when Paulson again bungled a description of his plan's benefits and execution.

Over last weekend another force erupted all over the country:native, grassroots rage over the bailout that would leave all the big institutions in place -- officers, directors, stockholders, all -- and offer to taxpayers the absurd promise of payback from hundreds of billions of trash that the institutions couldn't unload on anyone else.

You tell me your precious markets will melt down without this? Why do I care? Your stock market can go to "darn near" zero on Monday, and then you can come down here with me to find out how it feels not to be able pay the bills. More than half of Americans have no stake in these markets, no savings at all; and there is a political price to be paid for extreme inequality of income.

This bailout, incomprehensible to civilians and many experts and senators, should have taken ownership in the institutions involved. Proper vetting to Congress months ago would have gotten that done. Instead, the same ancient American forces that ignited the Palin phenomenon, Jefferson-Jackson-Bryan-LaFollette populism, have mobilized an anti-bank, anti-smarty-pants, street-level riot not seen in modern times." (rest of INMAN post here.)

Mortgage Pro Week in Review 9/21 to 9/28

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Mon, 29 Sep 2008 20:57:33 -0500

It was a BIG week in Mortgage World! A Real Nail Biter! It was all about THE CRISIS, and depending on which day you were reading that could mean, "Are we going to have a debate?," "Is the Bailout Plan Big Enough?," WaMu or Wachovia... and the winners in this Catagory are:

Matt Heaton, the million point guy that's leaving the Rain kept EVERYONE up todate!

Tom Burris who did a great job with a video on the Housing Crisis!

Jose Vargis with Top 10 Cities that will be hurt the most... I was actually glad to see that my city was NOT on the list!! I would bet that if you are not on the list - you're agents would like to see this too!

Chris Brown wrote, "WaMu went down... Woo hoo, I don't have to make payments anymore!" Uh, not so fast!... I thought that was clever!

Mike in Tuscon wrote about the FINGERPRINTING requirement for Loan Officers contained in the bill! (We do that in NC - and we put the loan officer's license number on the DOT!)

Scott Greary wrote a members only post about the election that made me LOL!

TECHIES: Mike Mueller wrote about a new Twitter Application he's figured out... one day I think I'll have that figured out! Justin Williams is someone you should also subscribe to if you want to have the latest news on Social Media... LOVED the October 15 idea!

Jeff Belonger wrote about... yep... FHA.

Sue Botehlo also wrote about this - and why USDA might make sense for some folks!

I did one on Calculating FHA Downpayment... don't make this mistake!

On Being a Mortgage Lender:

Tim Davis did a great video on how to help your agents out! He's a great coach and I've enjoyed getting to know him - much to learn from this guy!

Joe Adams wrote about being a BUSINESS PERSON and a Mortgage Professional. Loved this perspective!

Fred Chamberlin wrote about being a GOOD COUNSELOR. This is straight up advice, and the direction we should all be taking!

Jason Sardi got a gold star for writing a GREAT piece on Right to Privacy!

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Mortgage blogs by loan officers Here is a list of Loan Officers. If you are not listed, please email Jeff Belonger to be added. This way the person doing the Mortgage Pro week in review can try and find most mortgage related posts in one section. ActiveRain is growing rapidly and it is difficult to keep up.... If you think you have been ignored, you have not. This is open to all!!!

All About Mortgages/Mortgage Networking Here is a group that many loan officers post their mortgage related blogs in. A good place to learn more about the type of programs, new industry news, and sometimes some inside tips. Don't hesitate to join.

We really could use some new volunteers for the Mortgage Pro Week in Review. Even if you are a realtor, a title person, or someone else that is related to the mortgage/real estate industry..... please read below.

MORTGAGE PRO Week in Review A repository for the Mortgage Week in Review. Please don't hesitate in joining this group. And any volunteers for the mortgage week in review, please e-mail Jeff Belonger at jbelonger@ihmci.com

There will be no recreations of any type regarding the titles or content of this group or Review without the permission and expressed written consent of the Group's founder

Did NC Dodge a Bullet?

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Mon, 29 Sep 2008 11:02:45 -0500

Wachovia is the second largest employer in the LARGEST CITY in North Carolina. So news that it is being sold to Citi is BIG NEWS here in the Tarheel State!

According to the Charlotte Observer:

"Wachovia will remain headquartered in Charlotte,

while Wachovia Securities will continue to be based in St. Louis.

Citigroup will base its retail bank in Charlotte and

its investment bank in New York."

Whew! I was relieved... we do NOT need massive layoffs in our largest city right now! But then I read down a little further, and there was this news:

"A sale to Citi likely means big layoffs for Wachovia's workforce of 120,000, which includes 20,000 here in Charlotte. A Citi spokeswoman declined to comment on layoffs, but in a statement Citi said it expects to realize "more than $3 billion of annualized expense synergies through the consolidation of overlapping functions." Those cost cuts would amount to about 15 percent of Wachovia's nearly $20 billion expense base in 2007." the rest is here.

CRAP! Charlotte has been one of those FEW CITIES that had APPRECIATING home values! Anyway you look at it - we need those jobs to STAY in North Carolina! The current Mayor of Charlotte, Pat McCrory is running as the Republican candidate for Governor. I wasn't planning on voting for him - but maybe I should.

PSA: Does Washington Know You're A Loan Officer?

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Thu, 25 Sep 2008 15:27:41 -0500

I don't know if this will impact you - but if you're a licensed loan officer in NC - you should be signed up through the NMLS system. The deadline for this is Tuesday.

Your company needs to register, then they assign you a code. You loggin and register (take over 30 minutes). Here in NC they put your license number on the DOT with each transaction... if I was a loan officer in Georgia (or anywhere else) with a license in NC... I"d check this out.

Calculating FHA Downpayment

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Wed, 24 Sep 2008 14:26:37 -0500

I've been in this business for a while... my daughter would tell you I'm old as dirt... and for as long as I've been in this, we've had a complicated way of calculating FHA Downpayment.

FHA always used acquisition cost. How much were you putting into the total aquisition of the property... closing costs and downpayment combined.

With the new rule changes of January 1... we use a STRAIGHT UP number. The base loan will be a 96.5% of the sales price or appraised value - whichever is LESS. If you are working with a loan officer is is unfamiliar with FHA - you could find yourself at the closing table wishing you'd done a little more research. I just saw a deal where the loan officer quoted the wrong downpayment amount by $1200.

Do your research! Work with someone who KNOWS the guidelines!

100% Loans In Wake Forest, NC

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Tue, 23 Sep 2008 10:22:25 -0500

Are you looking for a home in the Wake Forest Area? Great NEWS! This map shows the property that is eligible for USDA 102% fianancing! The area that is NOT "peach" qualifies!

See that line where the railroad tracks go from "peach" to white. That's Roger's Road. This is a GREAT part of Wake County - property values are APPRECIATING here (unlike what you might hear about other parts of the country!), and values are continuing to go UP!

There are income restrictions for these loans, and they are intended for those who have not owned a property in the last three years. If you would like more information about qualifying for this loan click here.

If you would like to see if the specific property you are interested in qualifies for this loan program, click here.

If you are interested in getting prequalified for a USDA home loan - please call Steve and Eleanor Thorne, 919-459-1313. It's a GREAT TIME to buy Real Estate!

100% Loans Western Wake County, NC

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Tue, 23 Sep 2008 10:04:02 -0500

Here's some GOOD NEWS! There are TONS of places that allow USDA 100% loans in Western and Southern Wake County.

From the picture to the left, the areas marked in "peach" are not eligible... However, large parts of Apex clearly do! (see Kelly Road?)

The line that runs from the bottom left corner up towards the right is the County Line for Wake and Chatham County. All of Chatham County qualifies for USDA 100% loans!

If you are interested in purchasing property - NOW IS THE TIME. A friend of mine recently said, "I'm not sure we will see prices this low, and interest rates this low - combined with the $7500 tax free loan the Government is giving first time homebuyers again in our lifetime!" I think he might be right. There's never been a more perfect time to buy!

If you need some additional information on qualifying for USDA home loans click here. If you want to see if the property you are considering qualifies, click here. If you're ready to be pre-qualified, CALL US TODAY! Steve and Eleanor Thorne, 919-459-1313.

When Mortgages Get Sold

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Sun, 21 Sep 2008 13:48:15 -0500

In details released Saturday night of the Paulson Plan, the Treasury intends for us to bailout anyone who purchased "bad" loans. So if you purchased mortgages backed by real estate in the United States, but you live in Dubai, or Spain - our govenrment will include you in the bailout too?

According to Housing Wire "In particular, a section of the fact sheet suggests that U.S. taxpayers may be on the hook for the bailout of foreign corporations as well as those in the U.S. - a significant change from the language sent to Congress in the Treasury's original proposal."

I guess Matt Heaton was right - It really is the No Banker Left Behind Act... in the US or the WORLD!

Do YOU Feel More Secure?

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Fri, 19 Sep 2008 14:18:35 -0500

Sec. Paulson has been busy! And my gut feeling is that I don't fully grasp a good part of what is being done, what the implications are for mortgage rates, housing affordability, job creation and increased taxes. This is kinda' frustrating to me - because I genuinely work to understand our complicated Economic System.

I know that yesterday there was a moment of "no bid" on the LIBOR... this is bad news. LIBOR is the London Interbank lending rate. Meaning the rate Barclay's (for instance) might lend money to HSBC. This means at NO RATE was anyone loaning money. Similar issues where felt in the US as the spreads in Commercial Paper literally went off the chart (Commercial Paper is issued by companies like Boeing to fund short term needs). All of this is in addition to the problems they still had working through AIG, Lehman and Fannie/Freddie!

Looking at what was causing the problem, many analyst said these were the big issues:

Mark to Market: When the Mortgage "Meltdown" happened last summer, and Institutions stopped purchasing mortgages, and restricted guidelines... there was a TRILLION dollars in mortgages sitting on warehouse lines waiting for the "next guy" to buy them. As you might know, as a mortgage banker, I close loans on a line of credit, then I sell that loan. Often times a smaller mortgage banker will sell loans in "groups" of $500K to $1M. Let's say I was selling those loans to American Home Mortgage, who then put the loan on their warehouse line, where they waited until the loan was repackaged into a larger security and sold to Wall Street... Where the loans sat on a line of credit until they could be repackaged and sold to a Pension Plan, or Insurance Company or Derivitive. When this system came to a SCREECHING HAULT LAST SUMMER... there was over a TRILLION dollars in loans that were sitting on someone's warehouse line... waiting to be purchased. What happened next was that mortgage companies quickly failed, then Wall Street started writing off losses. But in the end, the real problem was - how much are those mortgage loans really worth? Default rates have gone up, Home values have gone down. If you were going to purchase the mortgages today - what would you pay for them? The "Mark to Market System" of putting a value on these assets placed the value at ZERO, thus making it appear that even though MOST of the loans were performing, Lehman Brothers and AIG (for instance) held assets with NO VALUE.
Short Sales: The FSA in England and the SEC stopped allowing short sales on Financial Institutions. The common belief is that these "gambles" that individual financial stocks would go lower pushed the stock to all time lows. This ruling is only in effect until October 2, 2008. Remember that Hedge Fund managers were doing MUCH of these sales.

Further, Secretary Paulson and Mr. Bernanke, met with the SEC and members of Congress to develop a plan to remove the marked down mortgages from the books of the banks in a "transparent" manner. In his message today about the new "Troubled Asset Relief Program" (TARP), Paulson said:

"The underlying weakness in our financial system today is the illiquid mortgage assets that have lost value as the housing correction has proceeded. These illiquid assets are choking off the flow of credit that is so vitally important to our economy. When the financial system works as it should, money and capital flow to and from households and businesses to pay for home loans, school loans and investments that create jobs. As illiquid mortgage assets block the system, the clogging of our financial markets has the potential to have significant effects on our financial system and our economy."

There have been several guesses of the AMOUNT of mortgage loans the taxpayers are now taking on... it's anywhere between 500 Billion and 1 Trillion, the amount that was unsold when this whole thing started.

With news of the TARP program, Stocks rallied again and so did bonds. The 3 mo US Treasury bond was trading earlier this week at 0.03%... it's now up to 1.0317. I am assuming this is the sort of "pop" the guys in Washington were looking for.

The IMMEDIATE PROBLEM WITH ALL OF THIS (thanks for reading along this far) is that the 10 year Bond has ALSO moved sharply higher... that means Mortgage Interest Rates have popped up, and that's not good news.

EVERYONE agrees that we must figure out a way to get some of the "inventory" out of the housing market. PIMCO's Bill Gross (they are one of the largest purchasers of Mortgage Backed Securities and that's where Greenspan works now) said last week we needed the Fed to create a situation where mortgage interest rates were below 5.0% for an extended period of time. He predicted this would shave a good 12 months off of the expected Housing Crisis.

With the additional news today that we are going to insure Money Markets, Reuters is suggesting that the possibility of a Fed Cut in October are now less than 30%. I hope they are wrong...

I'm will Bill Gross... I think we need AGGRESSIVELY lower mortgage interest rates to keep things floating along!

Manufactured Homes Are Very Affordable!

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Thu, 18 Sep 2008 14:58:59 -0500

Joe Adams sold manufactured homes for a while, and he has put together a great piece of information on financing mobile homes. Remember, new construction, mobile homes on permanent foundations (and land that you own - not rented) qualify for USDA, 102% financing!

Via Joe Adams:

In a past life when I sold manufactured homes the more difficult the economy and the higher the interest rates the better we did. WHY, becuase of AFFORDABILITY! Just think, as the price of homes is up (yes even today after all that has happened) and financing rates go up that brings monthly payment more into play. And for a lot of us in Rural areas this is even a larger factor.

Now, I am not hear to lecture you about these homes; but I am here to help you know how to get the best possible financing for them and your clients. Now, I am only dealing with homes that come with the property, if you are in a "park" where you rent the space these loans will not work for you. That is a differnt market niche from this one.

(yes this is a manufacture home).

If your client is looking at a new home from the dealer or even a used home from a private party or even a repo that is in a park the first thing you will need is a construction loan. There are 4 things you will need for this loan.

The price of the home

The price of the land

a full bid including transport (if any) and foundation, utility hooks, etc. (Remember you are BUILDING A HOME)

A Subject to appraisal.

My construction lenders like to see that I have at least run DU or DO and that the client can qualify for a permanent loan so I always include that in my package to the construction lender.

(so is this) Now how about that important final loan.

USDA Rural Development will do the loan! 102% financing so the client can really get into the end product WITH NO MONEY DOWN. But this is only for new right from the dealer/factory. Not used or pre owned. I actually love this loan. Yes there are some things like termite protection (in snow country?), but think about this...... AFFORDABILITY MEETS LOW OR NO DOWN HOUSING. USDA has no monthly MI/PMI making this even better for budget clients and there is no hit to rate for manufactured homes!!!!! The rate today for USDA is BETTER than FHA and Conventional.

FHA will also do this loan, but as of this typing the client will need 3.5% into the project. That can be deposits for the home, utilitiesas long as we total 3.5% of the project. This is only for new also, or existing. This doesn't work for the owner that wants to move theirs from the rented space to their own land. That would be "twiced moved" and for now FHA frowns on that (I think this is a silly rule, but until it is changed it is the rule). Some investors do have slightly higher rates for manufactured homes.

Conventional Yes there is conventional financing for manufactured homes. Even twice moved ones. Again these loans come with a higher rate, but then the home has a lower price. (We are seeing more of the twice moved projects here in Western Colorado due to the cost of housing and land)

The one thing I like about these homes is the construction loan period is so much shorter. General rule of thumb is approx 90 to 120 days and we are in the permanent loan, so the client has less interest to pay adding to even more affordability.

These are for HUD homes only. If your manufactured home is built to the UBC or IBC code then you have a stick built home. These will be more money and a slightly long build time, but still shorter than most construction projects and they qualify per Freddie and Fannie as "regular" homes, so your financing options and better.

If You Have An ARM, Pull Out Your Note

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Wed, 17 Sep 2008 16:58:20 -0500

LIBOR is on the rise. In fact, according to Bloomberg:

"The overnight Libor rate in U.S. dollars soared 3.33 percentage points to 6.44 percent today, its biggest jump in at least seven years, according to the British Bankers' Association. The one-week rate rose by more than a percentage point, to 3.88 percent from 2.49 percent on Monday, and the one-month rate increased to 2.75 percent from 2.5 percent."

Granted, most adjustable rate mortgages are not tied to the 1 day LIBOR... but most are tied to SOME part of LIBOR! So I suggest that you get out your note, and look to see what Index your Adjustable Rate Mortgage is actually tied to. Is it the 1 Month LIBOR, the 3 Month LIBOR, the 1 Year US Treasury Bill? While you're looking at your note, write this information down too:

Margin Rate
Caps

Now, once you know these things you can begin watching the LIBOR rate and see what sort of impact this whole AIG, Fannie/Freddie, Lehman Brothers is having on your pocketbook. You see, LIBOR stands for the London interbank lending rate. "Today's daily rate more than doubled, with smaller gains in the one-week and one-month rates, as lenders demanded higher compensation for risk after Lehman Brothers Holdings Inc. collapsed and the value of American International Group Inc. fell 84 percent in a week."

So a prolonged daily LIBOR at 6.44 will lead to a much higher 1 month average and 3 month average, and so on.

Let's say your loan was due to adjust in December, 2008. The bank will likely look at the LIBOR on October 1. If the LIBOR on October 1 is 3.5%, and your margin is 3.5%, then your new rate is likely 7.0%. If you received a 5-1 ARM in 2003 with a rate of 4.5% - this could be quite a jump in your payment!

But wait! There are caps! That's right - we had caps on the mortgages so that it couldn't go but so high at each adjustment. Many of those caps are 2%. This means that if your current rate is at 4.5%, the rate could go no higher than 6.5%... right. Well, if that's the way your caps read, that's correct. However, if your caps are 5/2/5... then your rate, with this first adjustment can go all the way up to 9.5%. Based on our little scenario above, with LIBOR at 3.5%, and the margin at 3.5% - your new interest will be 7%.

That's why I said, pull your note out and start reading it. With so many changes in qualifying guidelines during the last 5 years - you need to check with a lender NOW to see if you qualify to refinance, and if not, how much your payments are going to adjust to. We're all finding ways to tighten our belts, but if your famly has to absorb a $350 a month increase in your mortgage payment starting in a few months - you need to know what your options are!

If you want to find the best mortgage rates in Cary, NC, call Steve and Eleanor Thorne, Meridian Residential, 919-459-1313

LOCK Stocks Will Probably Rally 9/17

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Tue, 16 Sep 2008 16:04:51 -0500

Great news! Looks like the AIG issues could be solved by the end of the day... also looks like Hank Greenburg (who ran the company for years and was forced out) might take the helm again! Wall Street will likely see this news as Good News!

The Fed decided to leave rates alone - although they pumped liquidity into the market today. Wall Street will likely see this as MORE Good News!

Here's what that means to interest rates. Mortgage Interest rates are pushed lower when there's BAD news in the Economy. Good News usually means Higher Rates.

So I'd Lock 'Em If You Got 'Em!

Too Big To Fail?

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Mon, 15 Sep 2008 16:14:11 -0500

IN my humble opinion - we are half way to the end. I'm feeling pretty good about that - because I made it to the half way point and all I have to do is get to the end.

If you figure the real slow down in housing started in July of 2006, then by August of 2010 - we should be good!

So - why am I making this optimistic projection? Well, we've already had the credit lines cut, and mortgage company failures. Bear Stearns, Fannie, Freddie, Lehman, IndyMac, Countrywide are all doing business in a strange new way.

The next sector to hit the wall will likely be the folks that Insured all of the "exotic" Investments - and that should come in the next few day, week, maybe hours. (AIG). As the Insurers hit the wall... there's another wave ready to take it's place.

Commercial Paper. One post said: "The TED spread has increased to 2.01% (from just over 1% last week). This is close to the highs reached in August 2007, late 2007 and in the spring of 2008 (the three previous waves of the credit crisis).

Note: the TED spread is the difference between the three month T-bill and the LIBOR interest rate. Usually the TED spread is less than 0.5%. The higher the spread, the greater the perceived credit risks (compared to "risk free" treasuries).

So then we're faced with Recession... or is it depression. One way or the other we are going to get a new guard in Washington. I'm hoping they take Paulson out - before the Commercial Paper hits the fan! Then we'll have the Bank Closures and THEN maybe we'll be almost home free!!

It's a tight rope we're walking. A stronger dollar, as we saw earlier today, does actually bring in lower gas prices! But if the dollar get too strong, then we risk losing "foreign" investors. We are going to need foreign money... because as we need capital to build us out of this recession / depression we will not be able to rely on Wall Street.

Yeah... the next Administration is coming in at a strange time - but I'm counting down the months. My prediction right now is August 2010.

I've just got to figure out how to stay afloat until then...

Newest Trend in $$ - Peer to Peer

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Thu, 11 Sep 2008 10:35:44 -0500

Perhaps you've heard of Sir. Richard Branson's most recent venture, Virgin Money. It's a concept my grandfather employed in the 1960' and 1970's when he owner financed homes that he owned for employees. Virgin says:

"A Family Mortgage is a private loan from someone you know that is typically used toward the purchase of a home, or to refinance an existing bank mortgage. Imagine: Aunt Sarah as your mortgage lender!"

There's another Social Lending Company that might offer help for folks who are trying to scrape up the cash for a purchase, or need help getting on with life via a short sale. Zopa, says it's "FaceBook meets Lending." It's a new concept that would, for instance, allow me to help pay for my nephew's college tuition, $20.00 a month. If I sign up for $20 a month, and my folks agree to $20.00 and another aunt and uncle agree... well, pretty soon that student loan payment is almost nothing. These unsecured loans are for $25,000 or less, and you must have a 640 credit score.

At this time, we do not have lenders who will accept this as downpayment... but I think it could be the new answer to DownPayment Assistance!

If you have questions about prequalifying for a home in Wake or Johnston County, call Steve and Eleanor Thorne, Meridian Residential, 919-459-1313.

Triangle Agents! Save This Date!

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Wed, 10 Sep 2008 15:28:30 -0500

The Johnston County Parade of Homes will begin on October 18, 2008 with 46 beautiful homes open for the public to view. The theme for this year's Parade is "Picture Yourself at Home in Johnston County!"

The Johnston County Board of Realtors, in association with the Home Builders will have a "Realtors Day" on October 16th. The Festivities begin with a breakfast sponsored by Home Towne Realty and SunTrust Mortgage at beautiful Portofino from 8 until 9.

From there agents will board buses and tour half of the homes. The snacks and Drinks for the buses will be provided by Diamond Contracting and Nicole Gossaage.

Half of the group will enjoy lunch at Knolls at the Neuse, sponsored by Carolina Realty. The other agents will have lunch at Broadmoor West, sponsored by Meridian Residential.

The Buses will return to Portofino between 3:30 and 4:00 where there will be drawings for more than 60 door prizes! The Grand Give Away for the day (must be present at the end of the tour to win) is a trip to the beautiful Grove Park Inn Resort and Spa in Asheville, sponsored by Paula Anderson, Southern Cruise Connection.

While this is an event focusing on Johnston County homes, all Triangle Agents are invited to attend. RSVP should be made no later than October 7th, by calling the Board office (919) 989-9797, or you can email jcassocRealtors@earthlink.net There' no fee for this event!

Qualifying for USDA Home Loans in North Carolina

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Tue, 09 Sep 2008 15:01:53 -0500

I wish I had a nickle for everytime I'd heard somebody tell me, "I'm just lookin' for some land." They don't really mean they want a horse farm (necessarily) but they do want some room to stretch out!

Well - good news! USDA has a 100% program for those looking for a home in a rural setting. It does NOT need to be a farm - in fact if it's an income producing farm, I'll probably have to refer you to someone who knows a lot more about Commercial loans than I do... no a USDA loan is for folks who are buying a rural home (click here to see if the property you like fits within the USDA footprint) and who has fairly decent credit.

Basic Qualifying Information for USDA Loans:

Credit Scores need to be at or above 580. There are some exceptions - so if you are slightly under this let us take a peak at your credit and we'll let you know if you can close now - or if you need to do some work and close in six or eight months!
Traditional Credit Scores are often needed. Like FHA we can "build" credit... but if your total payments are higher than an underwriter wants them, or if your income is difficult to "document" or if you have been paying $300 a month rent and now your house payment is going to be $800... the underwriter is probably going to want to see some additional credit history. If you do not have a credit score - call us and we will show you how to get this started.
It's a 100% Loan, and you can get a gift or the seller can contribute to the closing costs. There are no reserve monies needed after closing - so it can truly be a no money out of pocket loan!
Qualifying is based upon your gross taxable income. This means that if you earn $48,000 a year, before taxes are taken out, we are qualifying you on $4000 a month. We look at two things to see if you qualify. We want to see what percent of our total gross income is going to your house payment. So again, if we are using $4000 a month - we want to see no more than $1160 going towards the principal, interest, taxes and insurance on the loan (or 29%). The other thing we consider is what percent of your paycheck is getting spent on ALL of your bills (including the house payment). This should be no more than 41%. (Click here to see if your household income is under the USDA limit)
Childcare is considered in qualifying for a USDA loan. But it is kinda' complicated... it affects the income used for qualiying and it might mean that if you are over the income limits in your area, but you are paying child care expense - you could still qualify!
These loans are fully documented... bring every document you think we might need to loan application! Because some folks have tried to get these loans without disclosing the spouses income (for instance - trying to "cheat the system") we normally ask for 2 years of tax returns.

If you want to see some of the homes in the Triangle that Qualify For USDA Financing click here!

For more information about USDA Mortgages, please contact Steve and Eleanor Thorne, Meridian Residential, 919-459-1313

Should You Take The $12,000 Financing Package Builder Pushes???

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Tue, 09 Sep 2008 09:24:44 -0500

It's easy to be mesmerized by the ads.

Your mortgage rate will be 3.5% the first year, 4.5% the second year and then FIXED at 5.5% for the rest of the time you own your home! You get a HUGE Tax advantage because you can write all of that upfront interest off! Beautiful New Home!

Just $12,000 more...

Let me ask you somethin', that community is not finished. In fact, the builder's rep told you that since this is the first phase, they've decided that once they sell the next 18 homes and move into the NEXT phase... they are going to lower the prices of the homes.

Is that "sweet deal" of $12,000 to use the builder's mortgage company really all that "sweet?" We don't think so either.

If you are considering a new home purchase in the Triangle, please call Steve and Eleanor Thorne, Meridian Residential 919-459-1313...

We'll give you an honest comparison, and the best rate for a mortgage you can find

Top 10 Employers in Chatham County NC - Looking for a Job in Chatham County?

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Mon, 08 Sep 2008 17:06:56 -0500

Last Friday the folks in Washington who count up who has a job, and who doesn't had some sad news... many of us are out of jobs.

In the Triangle, we are blessed with a strong jobs market, so if you are considering a move here, I thought you might want to read more about some of the top companies!

Via Stanton Homes - Penny Hull: Raleigh Area Custom Home Builder:

Top 10 Companies in Chatham County, NC

Hottest Places To Build a Career in the Chapel Hill/Apex/Pittsboro/Jordan Lake Area

Wondering who the hottest employers in Chatham County are?

Here are highlights on each of the Top 10 companies in Chatham County. We've included a little about what they do, and links directly to their employment page.

If you're considering relocating to Chatham County NC, or just looking for a new career near Raleigh NC, here's a great place to get started!



Chatham Hospital

At 7 AM July 28^th, the new Chatham Hospital (now a partner with the well known UNC Health Care System) in Siler City received its first ever patient. The new hospital is taking over for the original hospital that was built back in the 1950's. With the Chatham Hospital taking in over 1000 patients a month, it is very exciting for the residents to have somewhere to go with updated technology and resources to help with health concerns. With more than 5827 employees in the UNC Health Care system, there are always openings, click here for current opportunities.

Townsends, Inc

Family owned and operated since 1891, Townsends has evolved from apple and peach orchards, lumber milling and grain production to leading poultry products. They were first company to offer Organic Chicken products nationwide under the Pristine Cuisine label. Based in Delaware, with more than 3500 employees and locations in Siler City and Moncure, Townsend is the 9^th largest poultry processing company in the nation. For job information, click here.

General Shale Brick, Inc

Have you ever walked in a historic neighborhood and wished that there were still more of the artistic brick style buildings that last throughout the centuries? Are you artistic yourself? General Shale Brick may have the perfect job for you. Founded in 1928, and headquartered in Johnson City, TN, General Shale employs more than 2000 people. General Shale takes pride in delivering high quality products and excellent customer service while treating their employees well. To see their job opportunities, click here.

Chatham County Schools

If you like working with kids, then the Chatham County School district may have the job for you. With 16 schools, more than 7500 students and more than 1700 hundred employees, the Chatham County School district is one of the top employers in the county. Whether it's being a teacher, teacher's assistant, coach, bus driver or maybe something else entirely, there are always job opportunities. To see all current openings, please click here.

PalletOne of North Carolina Inc

PalletOne is the largest new pallet manufacturer in the US and is committed to being a low cost, high service provider. With 17 Facilities in 11 states with over 1500 employees, this is a privately owned company. While the corporate headquarters is located in Bartow, FL, they have a location in Siler City, NC. For employment information, click here.

ATC Panels, Inc.

Have you ever wondered what Particleboard really is? If you work for ATC Panels, at the Moncure NC mill you could find out. An industry leading supplier of composite panels, ATC Panels, Inc is one of the fastest growing wood panel companies in North America. One of their main products, particleboard, is widely used for manufacturing furniture, cabinets, shelving to name a few. If you are interested in a job with ATC Panels, click here.

Nationwide Custom Homes

Founded in 1959 building and shipping owner/builder kits throughout the US, now, Nationwide has locations throughout the Southeast including a production facility in Siler City, NC. Nationwide builds modular custom homes in a controlled environment. For employment information please contact Nationwide Custom Homes at (800) 216-7001.

Wal-Mart

I probably don't have to say much about Wal-Mart! Like everything else in the Triangle area, there have been plenty of new Wal-Mart shopping centers built over the past 5 years. Overall, there are 103 supercenters, 26 standard stores, and 22 Sam's Clubs in North Carolina, with 5 distribution centers to support all those savings.

Galloway Ridge, Inc

Galloway Ridge at Fearrington is a premier retirement community located in Pittsboro adjacent to Fearrington Village. Galloway Ridge strives to provide a caring, supportive and attractive living environment to resident members by employing a skilled, professional staff. Employment includes working with active seniors in positions such as Front Desk/Member Services, Admin Assistant, and Nursing Staff. Benefits include perks such as free membership to the Duke Center for Living and three weeks vacation. Click here for current openings.

Central Carolina Community College

The Central Carolina Community College has three campuses with the main Chatham County campus located in Pittsboro. Central Carolina CC has more than 300 employees including staff and faculty. Whether you are looking for a teaching, clerical or service position, please click here for current jobs

3M

Founded in 1902 in Two Harbors, MN, 3M is the first manufacturer of waterproof sandpaper, the inventor of Masking Tape, and in the 1950's introduced the Thermo-Fax, Scotchgard, and Videotape, and much more recently they have introduced optical films for LCD TV's and Scotch Transparent Duct Tape, to name a few of their successes. They are also the inventors of the ever loved Post-It Notes. One of their mining plants for materials is located in Moncure, NC with 100 employees.

They run six business segments within the 3M name which are; Consumer and Office, Display and Graphics, Electro and Communications, Health Care, Industrial and Transportation and Safety, Security and Protection Business. To look for a career click here.

Considering moving to Chatham County, NC?

Many residents work in nearby Raleigh, Chapel Hill, or Durham, or even in the smaller cities of Apex, Morrisville, Garner, or other cities.

Chatham County offers gently rolling, wooded land with neighborhoods nestled around corners or inside the quaint town of Pittsboro.

With Jordan Lake right in the middle of the county, there are great opportunities for fishing and boating, as well as hiking and golfing.

How Much Do Homes Cost in Pittsboro or Chatham County? What Kinds of Homes are Available?

How Much Does it Cost to Live in Chatham County? 2008 Chatham County Property Taxes

Chatham County Relocation Package - July 2008 - Moving Near Chapel Hill, Carrboro, Jordan Lake, Apex, or Pittsboro?



Stanton Homes offers a variety of custom homes in the Raleigh NC area. Whether you're looking for a one story home in the Pittsboro area, or a fully accessible home anywhere in the Triangle, Stanton Homes will work with you to find exactly what you need.

Call 919-278-8070, or visit www.StantonHomes.com for more information.

Pay Off Credit Card Debt Now...

Eleanor Thorne, Cary Mortgage Loans (Meridian Residential) — Fri, 05 Sep 2008 10:48:09 -0500

Have you looked at the balances on your credit card statements lately? Seriously? OMG!

Everybody I know has been "living" off of credit cards! How expensive is that? Well - If you have a $2000 balance on a credit card with an 18% APR it could take you 24 YEARS to pay it off if you simply pay the minimum balance!

If you've purchased a home in the Triangle during the last 24 months - and the value is less than $300,000 - you might qualify for a cash out FHA loan.

We are refinancing a single mom today who purchased a home last February. The FHA limits were not as high as they are now, and her conventional loan rate was 6.875%. We were able to pull $12,000 out of her home (which still left her over 5% equity), get her a better interest rate, and lower her monthly bills by over $585 a month! In addition to this - we saved her YEARS worth of interest that she could get no tax advantage for!

If you are interested in refinancing your home, please call Steve and Eleanor Thorne, Meridian Residential, 919-459-1313.