Karen Cox, NMLS#117349's Blog

FHA 90 day Flipping Rule Waived!

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Fri, 15 Jan 2010 20:45:22 -0800

Hud announced today that as of February 1st, 2010 they are waiving the 90 day rule for sellers to be in title to a property, also know as the "flipping rule". This is good for 1 year and does have positive influence in the market place!!

As long as the buyer and seller are not related and as long as the seller is not increasing the sales price by more than 20%, there are no other requirements or restrictions to this waiver.

If a seller has increased the price by more than 20%, the lender has to 1)document by a second appraisal what improvements were done to the home to justify the increase, 2) order a property inspection and provide it to the purchaser.

This will help more buyers to purchase these foreclosed homes in a more timely manner and will help reduce the property inventory in the market.

Finally- Hud is listening and is making sense!!

6500 Move Up Tax Credit

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Wed, 13 Jan 2010 16:24:35 -0800

An additional tax credit is available for "move up" buyers. Purchasers that are puchasing that next home are eligible for a $6500.00 tax credit.

One major stipulation to this is that you must have lived in your existing home for at least 5 out of the last 8 years, consecutively. This applies to purchases that occur between November 6, 2009 through April 30, 2010. A valid contract must be signed by April 30, 2010 but the transactions has until June 30, 2010 to close.

Learn more at www.federalhousingtaxcredit.com

8000 Tax Credit

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Tue, 18 Aug 2009 11:10:09 -0700

Reminder- that the First Time Homebuyer Tax credit of 8000 expires on December 1, 2009.

Let's back into this timeline- At the time of year that this expires it falls right after the Thanksgiving weekend. Title/Escrow companies and Lenders all take a 4 day weekend for the Thanksgiving Holiday so my advice is to close on a home purchase by November 25^th, 2009 to be on the safe side.

Many people are out looking for that first time house to take advantage of this credit. As more people find homes, the industry surges with business, now that is a good thing but that can extend turn times for title, appraisals and for lenders. I would recommend 45 days for closing so finding a home and submitting an offer by October 15^th at the latest would be a safe bet as long as no repairs or problems arise on your file.

If you find a home after this time line, I am not saying that it can't be done but that your level of stress will increase and your response times will be more critical to those of the needs of your lender. Please try and plan accordingly to help all in the process.

The time of procrastination is over, homes are available, rates are low and the tax credit is calling you. Call your Realtor & Lender today!!

Investor Alert!

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Mon, 17 Aug 2009 16:00:33 -0700

For all you investors out there, here is a great opportunity, just when you thought the investment opportunities were gone!

www.homepath.com This website has homes owned by FannieMae that are for sale. These homes qualify for special financing for all investors. The minimum required investment is only 10% down. Yes, really only 10%!!! Mortgage insurance is not required on these propertis and an appraisal is not required.

Now, just a few of the disclaimers, borrowers can not have more than 4 financed properties on this program, credit score must be 660 and you must qualify with the full payment with no offsets for the proposed rental income.

Check out the website and contact your realtor to view any homes and make an offer! Call me for all loan parameters and details. 503 585 1105 or karen@landmarkmortgage.com.

Salem in the top 10!

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Mon, 17 Aug 2009 15:59:04 -0700

Good News for Salem, We have hit the top 10 list for Forbes prediction for a fast housing market recovery!!

10. San Jose, Calif.

9. Santa Barbara, Calif.

8. Redding, Calif.

7. Denver, Colo.

6. Bremerton, Wash.

5. San Luis Obispo, Calif.

4. Salem, Ore.

3. Colorado Springs, Colo.

2. Lincoln, Neb.

1. Miami-Ft. Lauderdale, Fla.

Here is a link to the article:

http://www.forbes.com/2009/08/13/recovery-cities-homes-lifestyle-real-estate-housing-recovery-cities.html

I would be interested in your comments after you read the article. karen@landmarkmortgage.com or comment below. Thanks!

Many Changes

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Fri, 31 Jul 2009 22:30:50 -0700

Change in the lending industry is our new favorite word. It seems as though we get one new process under our belt (HVCC-appraisals) and now we have new changes to learn and digest as well.

July 30, 2009 the new HERA law and the MDIA disclosure processes have become effective.

In a nutshell, the new dislcosure process tells us when we can order the appraisal for a borrowers transaction and collect fees for the appraisal. We must wait 3 days from when your lender sends out your initial truth in lending statement (TIL) before we can request your appraisal and collect any fees except for the credit report fee. THere are other timeline requirements along the way as well to review and discuss with your loan officer.

Many lenders are working through their processes and putting systems in place now. I expect a few bumps along the way but with a good mortgage professional and good communication with all real estate partners, we should be able to limit any delays and keep them to a minimum.

FHA and use of FIrst Time Homebuyer Tax Credit

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Mon, 01 Jun 2009 15:55:22 -0700

Many have heard about the rumor that HUD and FHA will allow the use of the First Time Homebuyer tax credit for purchasing a new home. Well- yes and no. The new rules have been released and they are as follows:

Borrowers MUST have their 3.5% into the transaction, the tax credit can NOT be used for the down payment. The borrower may use the tax credit for closing costs, buying down the mortgage rate or additional down payment.

The tax credit is "purchased" by an entity or individual for no more than 2.5% of the actual credit so for example, the borrower is allowed the full 8000 credit, they will actually benefit 7800. That is a positive as those looking at purchasing this prior to HUD's ruling were charging a killing for this! This person or entity can NOT be someone involved in the transaction.

We must document that the borrower has no other IRS obligation that will reduce their ability to receive the tax credit. We must complete IRS 5405 to determine this.

So- Good news, bad news, borrowers will still need 3.5% down, but now maybe won't need so much in seller credit?

2009 Best of Mid Valley

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Fri, 03 Apr 2009 14:48:25 -0700

2009 Best of Mid-Valley

April 3, 2009

I was told today that I was on the 2009 Best of MidValley nomination list for Best Mortgage Broker, this on the Statesman Journal website. Voting continues through April 10, 2009.

http://community.statesmanjournal.com/bestof/vote.php?cat=81

Thank you to whomever nominated me as "Salem's Best Mortgage Broker". This is a great honor and I am very touched by this. This nomination is overwhelming and means a great deal to me. Thank you!!

Be Careful of Scams

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Mon, 16 Mar 2009 23:24:07 -0700

I have answered several phone calls since Obama's new "Making Home Affordable" plans that have been introduced in regards to these two programs on refinancing and modifications. One client in particular said that he received a phone call from a company that will help him with his modification for a fee, of course.

Please be careful and wary of any one that calls you and says that they can help you modify your mortgage for a fee. Lenders will do this for you for FREE. It can take a while for this process to happen because lenders do not have all their parameters or employees in place yet, please be patient and don't let anyone tell you they can do it for you more quickly. They are just taking your money.

A good website to check is www.financialstability.gov. This site will be updated and lenders are working on these programs. Please be patient. If you need help deciphering the documentation that you need to gather or need help understanding paperwork you are given by your lender, please call me. I am happy to help and will not charge you a fee.

This program is to help people stay in their homes not to make a "quick buck".

Modification?

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Wed, 04 Mar 2009 14:59:40 -0800

Mortgage Lenders Urged To Take Part In Housing Plan
U.S. bank regulators want lenders to participate in the new program to support home loan modifications,_ in order to ease downward pressure on house prices and foreclosures.

http://www.cnbc.com/id/29508073/

Here are links to several sites to help us understand the highlights of Obama's plan to stem foreclosures and to modify existing loans that may be in trouble.

http://treasury.gov/news/index2.html

http://www.financialstability.gov/

I have some concerns on whether this will truly work or not.

1. Lenders are only "encouraged" to participate. It is not mandatory.

2. Do borrowers have to be late currently or just about to be? I believe the answer is no according to the above links so that is good news.

3. It seems that one of the qualifications is that you are not able to qualify for a traditional refinance due to loss of equity in your home. In my initial research, it seems that there are two plans or options that you may fall under.

http://www.financialstability.gov/ This website has a question and answer format that is good. The two options are 1) a refinance option for those who owe about the same or more than their current value is and 2) the modification program.

4. How will this affect someones credit report in the future? This woud be helpful to those that aren't late yet and contemplating this as a solution to lower their interest rate and payment.

My concern is that the Hope for Homeowners program and the FHA Secure program were suppose to be the "savior" for people in need but those programs worked only for a few people. Lenders put their own spins and requirements on those programs so the success rate of these programs was negligible.

I am sure that as the plan unfolds and lenders add their interpretation, we will see how this plays out.

Tax Credit

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Wed, 04 Mar 2009 14:58:29 -0800

I just received the following information (Thank you Carolyn Jackson, CPA, Salem, OR) in regards to the First Time Home Buyer Tax Credits. 2009 is definitely the year to buy your first home (or a home if you haven't owned one in the last 3 years). This year the credit will be a true credit and not an interest free loan like 2008.

Expanded Tax Break Available for 2009 First-Time Homebuyers

IR-2009-14, Feb. 25, 2009

WASHINGTON - The Internal Revenue Service announced today that taxpayers who qualify for the first-time homebuyer credit and purchase a home this year before Dec. 1 have a special option available for claiming the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.

Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.

"For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit, " said IRS Commissioner Doug Shulman. "This important change gives qualifying homebuyers cash they do not have to pay back."

The IRS has posted a revised version of Form 5405, First-Time Homebuyer Credit on IRS.gov. The revised form incorporates provisions from the American Recovery and Reinvestment Act of 2009. The instructions to the revised Form 5405 provide additional information on who can and cannot claim the credit, income limitations, and repayment of the credit.

This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, $150,000 for joint filers.

For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.

The IRS also alerted taxpayers that the new law does not affect people who purchased a home after April 8, 2008, and on or before December 31, 2008. For these taxpayers who are claiming the credit on their 2008 tax returns, the maximum credit remains 10 percent of the purchase price, up to $7,500, or $3,750 for married individuals filing separately. In addition, the credit for these 2008 purchases must be repaid in 15 equal installments over 15 years, beginning with the 2010 tax year.

First Time Home-Buyer Tax Credit

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Thu, 26 Feb 2009 11:13:55 -0800

Expanded Tax Break Available for 2009 First-Time Homebuyers

IR-2009-14, Feb. 25, 2009

Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.

The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, $150,000 for joint filers.

Market Updates

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Thu, 26 Feb 2009 11:12:35 -0800

It has been a few weeks since I have had a moment to post anything. I apologize for that but as the lending industry is still changing on a daily basis, I must keep up.

Lenders are still trying to slow their volume. Some lender are having issues with their credit lines and either reaching their limits or having the holders of the credit lines auditing files and putting stricter restrictions on the files before they will allow the funds to be disbursed. This is a new review of files that are delaying loans even further. In the "good ‘ole days" a refinance would sign loan documents and after the required 3 day right of rescission where a borrower can legally change their mind and cancel the transaction, the loan would fund. In today's market, this process can take 6-8 extra days to fund. Loans are funding just be prepared for delays.

Lenders are also increasing credit score requirements even further still. I have an additional post in regards to credit scores and how to raise your scores in a relatively short amount of time.

On a positive note, Fannie Mae has relaxed a bit and will now allow up to 10 financed properties again. Investors are happy. There are new additional requirements to purchase or refinance 5-10 properties, including a new minimum credit score of 720 and significant cash reserves but it's a start!

Also on a positive note, thanks to the stimulus package, FHA loan limits are back to 295,000 in Marion and Polk counties. This is good for several reasons. The biggest one is that FHA's credit score requirements are lower and they have no pricing adjustments for the lower scores.

5 Things you should know to Refinance.

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Mon, 09 Feb 2009 22:28:55 -0800

With mortgage rates dropping to record lows, it's no surprise that more and more homeowners are looking to refinance. But while some borrowers will be able to turn these compelling rates into real savings, not everyone can get in on the action. To better understand the refinancing process, here are five things you need to know to refinance in today's market.

1. Despite the attractive rates, you will have to thoroughly review your financial position before determining whether or not now is the time to refinance. A good rule of thumb is if your mortgage rate is a full percentage point or more higher than current rates, you should consider refinancing. If your rate is above 6 percent currently, then it is a good time to think about it.

2. While 720 is still considered by some to be a solid FICO score, it's not good enough to obtain the best rates in today's refinancing market, Instead, borrowers will need a FICO score of at least 740. "FICOs are everything," Borrowers that don't have this score can still refinance, but they will face higher rates, which may make refinancing not make sense.

3. Home equity can be another significant barrier to refinancing today. Zillow says roughly one in seven American homeowners actually have negative equity-meaning they owe more on their mortgage than their property is worth. In order to qualify for refinancing, homeowners will have to have a minimum of 3 percent equity in their homes. In addition to solid credit and home equity, you will also need to be able to document income in order to qualify for refinancing.

4. Loan fees lenders charge are another major consideration. Costs to refinance can be 2 ½ to 3% of your loan amount. The fees that you should be paying need to be low enough so that you can recoup your money through the break in the interest rate in a reasonable period of time-usually under four years. If you are planning on moving in a short time then it may not be cost effective to refinance. Borrowers have three main options for paying such fees. Those with enough cash may want to just pay the fees up front. Borrowers with less cash on hand may be able to opt for a higher interest rate instead of paying the fees. A third possibility is to have the fees tacked on to the principal of the mortgage. The key is to chat with your mortgage professional about structuring the fee payment so that it makes the most economic sense for you.

5. Be patient: The wave of refinancing applications comes amid a period of significant downsizing in the lending industry. That means there are fewer employees on hand to handle the surge in business. As a result, expect slower turn times. It can take 20-30 days to know if your loan has been approved. It can take up to 45 days to complete the entire transaction.

Reverse Mortgages

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Fri, 30 Jan 2009 11:59:28 -0800

http://www.katu.com/amnw/segments/38566642.html

Here is an interview that one of Landmark Mortgage's owners gave on AM Northwest about Reverse Mortgages. Curt Lawrence and Bill Tucker have been doing reverse mortgages since 1996. They are extremely well versed in all aspects of this loan product and are happy to answer all questions.

A Reverse Mortgage is a great option for our senior citizens that are on a fixed income if they own their home. Please call 503-585-1105 or email if you have any questions. karen@landmarkmortgage.com

Yes, There is Money to Lend!

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Wed, 28 Jan 2009 21:38:09 -0800

This morning my alarm went off and as I am lying there trying to decide if I really want to wake up, the morning show crew begins a dialog. Guess what that dialog is about? You guessed it, one of them is refinancing his house!

Well immediately I am up, (the quickest I have got up out of bed in a very long time) he starts by saying that he doesn't think that lenders are lending money because it is taking so long to get his easy refinance of his first and second that is under 80% completed.

I want to say- THERE IS MONEY AVAILABLE TO LEND. There are many reasons why loans are taking longer right now. Appraisers, and lenders have quickly been hit with a surge of loans with the blessing of lower rates so with that surge comes growing pains. Many lenders had laid off so much of their staff that they were running on skeletal offices. There wasn't a fore-warning that these low rates were coming so they couldn't beef up their staffs and hope it would be here. A typical refinance is taking 30-45 days to close currently.

So what did I do? I actually call in and talk to the morning show host and educate him on these challenges that lenders are facing and also share with him my opinion that I do think rates will come down in the next few weeks after lenders are through with this little surge of business. I do let him know that there is money to lend, plenty of money. Rates are great so now is the time to buy or refinance a home. The opportunities are endless!!

karen@landmarkmortgage.com

Changes

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Sun, 25 Jan 2009 13:35:22 -0800

"The only constant is change." Who said that? In my search, I found several people have said similiar quotes. The theme is that change will always happen.

Whomever we give credit to, is absolutely correct, especially in the world of lending. The last 18 months have seen constant change. Most of it good. There are some continually tightening rules that seem to be too far in the spectrum though. I will highlight a few of those here.

Fannie Mae and Freddie Mac are imposing pricing adjustments for certain loan to values, types of loans, credit scores and if a borrower is refinancing to pull cash out. Each of these categories have a different risk associated with it based on statistics of current loans and how they are currently performing.

Borrowers with a 740 score are now almost guaranteed at least a minor adjustment unless their loan to value is 60% or less and they are just refinancing. Borrowers with less than a 740 score can have a multitude of adjustments.

There are additional pricing adjustments for investment properties now too. You must put 25% down to get the lowest adjustments for an investment property. These pricing adjustments are on top of your credit score adjustments.

Condos now have a pricing adjustment, much like manufactured homes.

I am not saying that all of these adjustments are negative, however, in the rate environment that we are in that could actually help people lower their interest rates and be able to stay in their homes, some of these adjustments are pricing those people out of the ability to refinance and take advantage of the lower rates. It doesn't seem right.

One theory on these pricing adjustments are that rates are going to have such a low starting point and that after adjustments we will be in the 4.5-5% range for most borrowers. I hope that is the case so we can truly help clients save the most they can on their mortgage payments.

This may sound like I am saying that you can't get a loan these days, that is not the case. Lenders are extremely busy and the loan volume is high. I am saying that there is now much more to a phone call that asks "what are the rates today?" Everyone's situation is entirely different so you and your co-worker could both be refinancing your houses and end up with entirely different rates. It is all truly dependent on you situation!

Make sure that your loan officer knows all the adjustments and asks enough questions to be able to quote you the correct interest rate. Be wary of phone solicitors that tell you a "too good to be true" rate when all they know is your name and phone number. (more on this later)

karen@landmarkmortgage.com

Is the New Year Here?

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Sun, 11 Jan 2009 22:54:12 -0800

Wow! What an interesting time in the lending world. The first two weeks of the year have been incredibly busy. Rates are approaching their all time lows and yet with the economic data and the Fed's puchasing mortgage backed securities (MBS), rates should even be lower.

There is much discussion and theories among analysts that the reason rates are not lower are possibly two fold. One, lenders are extremely busy and they need to slow the volume down to be able to beef up their staff to handle the volume.

Second, the spread between what rates should be and what they are could just be good old fashioned greed and collusion. Lenders could be holding on to the fact that they have a lot of lost ground to make up from the losses they have taken last year. Lenders want the existing loans that they have logged on to close so as to not lose them to other lenders or to have to renegotiate rates which costs them additional money.

Keeping in contact is important. Call or email with any questions to see if now is the right time for you to refinance. karen@landmarkmortgage.com

Market Recap and Forecast

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Mon, 29 Dec 2008 19:33:58 -0800

The purchase of U.S. Treasury bonds was slowed by successful auctions of billions of dollars in government debt last week as the Treasury Department continues to sell bonds to finance its multiple programs.

Nevertheless, with bleak economic news making the rounds and less-than-rosy corporate outlooks, the demand for Treasuries remained strong. Investors -- both private and corporate -- keep coming back to the safe haven of U.S. Treasuries, because it is the one safe place to put their money. In fact, according to a Lehman Brothers index, this year Treasuries have provided a 14.3% return on investment, while the S&P 500 is down 41%. No wonder Treasury prices are up and yields, which move inversely to price, are down -- but off record lows.

The trend continued Friday, although trading was thin. Treasuries are attracting buyers and economists expect this to continue for six months, possibly longer.

There was more bad news on home sales in November. In fact, it was worse than expected. Tuesday's existing home sales repot showed an 8.6% decline to an annualized rate of 4.49 million units -- with 45% of those sales on distressed properties. Inventories rose to 4.2 million units, representing an 11.2-month supply. Home prices fell to a median of $181,300, putting them back at February 2004 levels.

New home sales dipped 2.9% to an annual rate of 407,000. Surprisingly, the median sale price rose 0.9% to $220,400. However, this report is subject to massive revisions over the next six months.

The University of Michigan/Reuters' final survey of consumer sentiment survey rose to 60.1 from 59.1 two weeks ago. The record plunge in inflation data was largely responsible. Respondents also mentioned that lower gas prices made them optimistic. In a separate report, the final revision of 3^rdquarter gross national product (GDP) came in at -0.5%, in line with expectations.

Wednesday's news wasn't much better. First-time jobless claims rose by 30,000 to 586,000 -- the highest level since November 1982. The four-week average, which smoothes out peaks and valleys, also rose to 558,000. The good news was that continued claims, those collecting benefits for more than one week, dipped to 4.37 million -- still unacceptably high.

Durable goods orders fell by 1% in November. Nevertheless, that was a big improvement over October's 8.4% decline -- and it beat analysts' predictions. The one positive number in the report was the 4.7% increase in capital expenditures (business investments). They had declined during the previous three months.

Personal income/spending for November was down, but the Fed's favorite inflation indicator, the PCE, rose by only 1% over the past year. That's within the Fed's 1%-2% comfort zone. But consumer spending, which makes up two-thirds of the GDP, fell 0.6% in November versus a 0.1% decline in October. Economists say that falling prices factored into the decline. Personal income dipped 0.2% in November versus a 0.1% increase in October.

The big drop in mortgage rates during the week ended Dec. 19 brought out homeowners wanting to refinance. Refinances rose 62.2%, according to the Mortgage Bankers Association, and accounted for 83% of mortgage activity. Purchase applications were up 10.6%.

If there's been a week in recent history with fewer reports than this one, we can't remember it. Most of the typical "last week of the month" reports were pushed back to last week, and "first week" reports, like the employment report for December, were moved ahead. That leaves us the Institute of Supply Management (ISM) index on manufacturing conditions for December, which will be released Friday.

The ISM index, composed of surveys of 300 industrial companies, is used to predict future conditions in each of its nine components, including new orders, production, employment, etc. The ISM index is a key manufacturing indicator, due to its current data.

Happy Holidays!

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Fri, 19 Dec 2008 14:53:54 -0800

What A Day!

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Thu, 18 Dec 2008 10:30:06 -0800

Yesterday was an incredible day in the mortgage industry. We saw the opening rates at 4.375% for some scenarios first thing in the morning. Which after the Fed meeting and lowering the Fed Fund rate is incredible all in itself. In normal economic times, historically, mortgage rates increase after a Fed Cut and then we recover a few days to weeks later. However, we all know that we are not in normal economic times are we?

Lenders web sites crashed, Fax lines were busy all morning long. By the time the dust settled, we ended the day at 4.75-4.875% depending on scenarios. I think that lenders had to increase rates yesterday to curb the volume they were receiving. They knew they could not keep up. With the surge in volume, turn times will also increase. We will most likely be looking at 45day closes now with the sheer increase.

Be patient and in contact, rates will calm after the storm. I will work hard to get existing loans renegotiated or taken to a new lender to take advantage of the better interest rates. My clients financial well being is the most important to me!

Rates Approach Record Lows

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Mon, 15 Dec 2008 11:17:03 -0800

Since the Fed announced a plan to purchase $500 billion of mortgage-backed securities on November 25, mortgage rates have moved progressively lower, and the trend continued last week. Conforming fixed-rate mortgage rates dropped to levels last seen in 2003. Weak Retail Sales data and low inflation figures released during the week also supported the move lower.

As the government strives to offset the current weakness in the economy, its actions have exerted a much stronger than usual influence on mortgage rates. Programs to purchase mortgage-backed securities and to provide capital to financial institutions have been favorable for mortgage rates, while a bill introduced in Congress last week could have the opposite effect if passed. The bill would permit bankruptcy judges to modify troubled mortgages by reducing the principal and payments. The goal would be to help prevent foreclosures, which is a worthy objective. However, opponents of the plan are concerned that investors may require higher mortgage rates to compensate for the increased risk that loan contract terms may be changed. At this point, it's not certain when the bill will come up for a vote.

We do need a plan to help people in foreclosure but what is the best plan? That is the multi-billion dollar question for another day.

Thank you

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Wed, 10 Dec 2008 13:38:15 -0800

Thank you to all our clients, friends and business partners that made our first ever Client Appreciation night at Northern Lights in Salem a great success!!! Seeing everyone and re-connecting with good food, movies and conversation was incredible. Be on the look out for our next event in the Spring!

Future of Rates

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Mon, 08 Dec 2008 17:45:09 -0800

With all the media and hype this past week that rates are going to be 4.5%, I thought that I would put my two cents worth in.

This comment made on the Today Show last week sure made the phones ring. Rates were excellent last week at 5.125-5.25% but low and behold, that wasn't good enough for people. "put my loan on hold, lets wait for 4.5%" was what I heard. Well, what if that doesn't happen and rates end back at 6% before they decide to move forward, whose fault will it be that they didn't get 5.125? (Not that 6% is a bad rate but 5.125% sure sounds better.)

After digging further and doing some additional research, 4.5% would be for new purchases only not refinances, is what the comment was referring to. This is one option that the government is tossing around. Much like the TARP, Hope for Homeowners, FHA Secure, I don't have much faith in these programs. These programs become so twisted and different than presented by the time they are implemented that they virtually have little or no impact. So again, do clients decide to move forward or just hold and sit on that fence a while longer?

Rates are not reacting to the economic indicators in a normal fashion. This year has been the year that bucks all historical trends. Can anyone really predict what the market will do? No, I think not. One client said- "My mom says that rates will be good on December 16th so lock me then" Can this really be??? What is happening on the 16th? The adjournment of the Fed meeting? Would that trigger a lower mortgage rate? Not in a typical market, but then again, we aren't in a typical market. Maybe Mom does know best!

Time to Buy or Refinance is Now!

Karen Cox, NMLS#117349 (Landmark Professional Mortgage Company) — Mon, 01 Dec 2008 12:13:00 -0800

The time to buy or refinance is now!

Rates are approaching the lows we saw in early January for a few short hours. I think that rates will continue to improve and more people will be able to take advantage of the lower rates this time around.

It is truly a buyers market out there again, home prices are down and inventories are up. Contact you real estate agent and renew your house hunting. A home purchase is truly one of the best investments you will ever make for your family well being and your financial well being!

If you need any lending advice, I am happy to consult with you. There are still great programs available for homebuyers. My email is karen@landmarkmortgage.com or 503-585-1105 is the office number, I am available at the office Monday -Friday and most anytime via email.