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Exciting Pflugerville Getaway - 908 Indian Run Dr. 

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"Have you been turned down for a loan?" This used to be more of a sales cliche.  But this has become a real problem for a lot of people.  

Here's some of the changes we have seen to loans since 6/2006:

560 min for 100% full doc sub-prime loan, now 620 score min

100% stated loan 600 score to 700 score 100% stated documentation. 

With shrink loan programs and tightening guidelines, more people are being left out of the home buying.  People are becoming frustrated.

What can be done??  Although we have some unique loan programs, most have been standardized.  We must consider something different. 

We just started a business relationship with a credit repair company that is very professional and commits to their promises.  

i have worked with credit companies in the past and have been unimpressed.  These folks are different;  they have a methodical process for fixing credit.  They offer a 4, 6 and 8 month programs for credit repair and if the borrower won't fit those programs, they say so.    If you can fix your credit quickly they give you the advice! 

If you have been turned down for a home loan, please contact me.  We have some you unique loan programs that can help (especially if you can pay some of your closing costs).  If not I would be happy to put you in touch with a credit repair firm that will fix you credit.

This is some finance market info, i thought everyone should know.  So you can be an expert to your clients.  The FNMA 30yr bond drives mortgage prices, it is the primary cost associated with standard bank mortgages.

We have an excellent finance group that tracks the bond market for us.  

So far rates have worsened 6 of the 7 days.  Although everyone got good news from the fed, that their rates were holding at 5.25%, the notes from the fed meeting showed a strong concern for inflation and little concern over the health of the economy. 

The economic date released since then shows that employment is up and the overall economy is strong.  

What's the big deal? The rate ceiling (maximum rates for a standard 5% down mortgage) we have seen for many months of was annihilated by the market. 

Per Freddie Mac "Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 6.42 percent with an average 0.4 point for the week ending May 31, 2007, up from last week when it averaged 6.37 percent.  Last year at this time, the 30-year FRM averaged 6.67 percent."

We expect this to go up to  shortly.  these numbers are from freddie mac and are not a loan quote.

This is a 0.3% rate worsening from a week ago.   

So warn your clients, to lock their rates to avoid the market shift.

As rates slowly rise with inflation, buyers will be looking for more options to purchase the home they want. While there are other products, one of the simplest and safest options is paying points. Discount points are fees paid to the lender at closing to permanently pay down the interest rate of the loan (this is not a buy down).

Each "point" is equal to 1% of the loan amount. For example on a $200,000 loan, a point would equal $2,000. The amount of interest rate discount depends on the loan product, but it can reduce the rate from a quarter point to sometimes over a half point. This is especially beneficial on larger home purchases and buyers that can't document their income.

If the buyer has a little extra to put into the purchase or the seller is willing to contribute a little bit more, this becomes a stronger option.

Example:

Suppose a buyer wants to purchase a $200,000 house

A simple formula for weighing the benefits:

Monthly savings is $48.35 divided into the discount of $2000.00

It would take just over 41 months or 3.44 year to recover the cost.

If your buyer plans on staying in the house for more than 3.5 years this makes sense. Remember, the longer that you plan on staying in the house, the more important .

Thank you for visiting my mortgage blog.

It is always fun answering questions and giving you advice. 

Please sign below and include your city and state. I would like to create a map of all the visitors to this blog.

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Saturday, May 19, 1 - 4 p.m. at The Khabele School, 801 Rio Grande.   Register on-line at http://www.themoneyacademy.net/

Knowing how to handle our personal finances is one of the most important educations we can get, and yet it is not taught in school.  As parents, we struggle with how to help our kids gain proficiency and power with money, so they can create a future of financial freedom and security.  Gayle Skiera, a Landmark Forum Graduate, delivers a 3 hour workshop that will forever change the way you teach your kids about money.

What you will have after attending this parent workshop:

• A roadmap for transferring financial competency and responsibility to your kids.
• Specific tangible tools and a new language for talking about money to your kids. 
• A new perspective of money within your household.
• Specific methods to help your kids regulate their impulses and to budget resources.  

Here's what people are saying about Gayle's workshops:

"The Money Academy programs offer a powerful way to engage our kids in a real dialogue about the value of money and what our relationship is to it.   This has huge implications for the rest of their lives.  I think it's the most important education we can get."   ...Brigid Shea, Civic Leader and Parent

"Gayle facilitates a fun, free and more conscious relationship to money."  ...Milad Taghehchian, Finance Entrepreneur

Check out this program and all the other offerings from The Money Academy on the website:  http://www.themoneyacademy.net/,  or call Gayle at 443-8851.

See you Saturday!

IMPORTANT LEGISLATIVE ITEM NEEDS YOUR ATTENTION!

Has one of your buyers ever got stuck with a higher mortgage rate, because they had to use the builder's Mortgage Company?

There is legislation in the Texas House of Representatives that would prohibit sellers (builders) from making incentives contingent upon using any specific service provider.  Builders would no longer be able to steer borrowers to their own mortgage companies.

HB 3798 is legislation to allow the homebuyer to apply any contributions from the builder as inducements to buy the home, not be contingent on specified lenders or mortgage originators. This will give the buyers a fairer position and also the originating industry a chance to be competitive for the buyer.

Contact you house rep to pass this;

http://www.legis.state.tx.us/Members/Members.aspx?Chamber=H 

I'm curious what you think about this.  Let's do our own vote.  You can comment and say yes or no.

You can always say more.  I'll total the votes - 1 for 1 against

For Prequalification call Ethan hoke at 924-5741 

REALTORS - The Burrows Team

RE/MAX Lakeside

512-627-6850 (direct/Cell)

512-366-9349(facsimile)

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