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investors: The stimulus package is here, now what? - 02/14/08 06:40 PM
I've read mixed comments about the highly anticipated  "rebate." For example, on a  January 31, 2008 press release, the Financial Planning Association advice consumers to be carefull how they will spend their rebate checks.
One of the strongest observations from the personal finance perspective is that "spending the rebate may not be in the best interest of many Americans. Not setting up a household budget is how many Americans got into financial trouble in the first place." according to Mark Johannessen, CFP®, president of the Financial Planning Association® (FPA®)
The FPA made a point if we consider that the national savings rate is minus 1/2 … (4 comments)

investors: The Loan Limit Increase is Almost Here! - 02/12/08 01:26 AM
 The big day is almost here! President George W.Bush is set to sign the Economic Stimulus Plan on Wednesday. Here is the nitty-gritty of the Increased Loan Limits on Bill HR 5140.
One of my trusted sources tells me that we'll be able to finance residential loans that were considered "Jumbo loans" (real estate financing above the industry-standard definition of conventional conforming loan limits) which is great news. But the question is, will this reform help the majority of homeowners? In the real world, this update will work for a drastically limited number of borrowers.
It is nevertheless, good news for homeowners living in  in expensive … (6 comments)

investors: It is not what you say, but how you say it! - 02/05/08 01:51 PM
The early release of the ISM Report caught traders by surprise. How problematic is that?
First, the 44.6 reading was waaay below expectations, considering that Economists were expecting a 53.0. This data indicates that the service sector is shrinking for the first time in almost five years, implying  economic slow down.
Second,the markets are trying to figure out if the slowing in the manufacturing and the service sector is a clear indication that we are indeed heading towards recession. By now this is no surprise, however the cause of uncertainty this morning was a combination of bad news and how they were … (2 comments)

investors: HR 5140 Passed, Now what? - 01/31/08 03:12 PM
By now, we have all heard the good news of increased lending limits in high cost areas, and tax rebates to help stimulate the economy. On the surface, we all rejoice now that more loans and with less restriction will become available, right?
This is what's happening: The US House of Representatives overwhelmingly passed HR 5140 recently - an economic stimulus package that includes a temporary increase in the conforming loan limit and the upper threshold for FHA loan programs to as much as $729,750 in high-cost areas. 
The temporary increase would last only until the end of 2008.  This bill would also restrict Fannie … (4 comments)

investors: It's picture time! - 01/29/08 04:31 PM
One of my clients called me last week after reading my latest posting, on our conversation I was explaining to him that most homeowners look at mortgages from the homeownership perspective instead of the personal finance point of view costing themselves a lot of money in lost opportunities to increase their bottom line (net worth.)
I shared with my client that a newsletter from Paul Richard, RFC., Executive Director of the Institute of Consumer Financial Education says, "the big picture is your net worth, listing the things you own versus the things you owe." Along with that he said, "you should determine how many years … (0 comments)

investors: The Federal Reserve Lowers Interest Rates by 0.75%... What Does This Mean For YOU? - 01/22/08 01:12 PM
Dear reader,
The Federal Reserve surprised the market this morning with a 75 basis points rate cut... What Does This Mean For YOU?  In order to answer this question, it is helpful to understand the four major interest rates that are affected by the Fed:
Discount Rate (currently 4%) - the interest rate that banks pay when they borrow money directly from the Fed. The rate has been largely symbolic in the past because hardly any banks take the Fed up on their offer these days!
You see, banks prefer to get short term financing by:
Issuing "commercial paper" - these are short term IOUs of … (0 comments)

 

Joseph David, CMPS®

Fountain Valley, CA

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Clarion Mortgage Capital, Inc.

Office Phone: (714) 786-4516

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