Oregon Mortgage News

Reverse Mortgage Solutions - Jack and Betty

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Tue, 17 Jun 2008 12:41:10 -0500

Jack and Betty own a duplex that is completely paid off. At 79, Jack is still driving truck but is seeing a downturn in his income due to the economy. Last year they made over $90,000 between driving, a couple of pensions and SSR. They haven't rented out the 2nd unit in the duplex for a few years as there isn't enough room in the driveway for more then 2 cars. Parking on the street disappeared when the city widened their street.

Jack's concern was to be able to pave over the yard and create more parking, and for Betty to have access to cash should she need it if Jack were away from town on a trip. Betty was concerned about the ability to pay their bills with Jacks reduction in work. They both wanted to access cash as they need it, rather then tap all of the equity at one time. They also would like to be able to leave some money to a niece and her husband.

We looked at taking out a traditional Equity Line of Credit. While it would have been the least expensive option up front, it would have required them to make a monthly payment. At that point, the rent from the other side of the duplex would have covered the new mortgage debt with a few hundred dollars left over.

After talking with Jack and Betty, my solution was to use a HECM 175 Reverse Mortgage with a cash draw in an amount sufficient to make the needed repairs to their property and give nice cushion for the remainder of the year. This also left them with a sizable line of credit that will continue to grow as their property appreciates

This loan is setup so that if they use their equity wisely, and if the home appreciates at 5% per year, their equity will never be exhausted. In fact, if they live to age 100, there will still be roughly $357,000 in equity after paying off the loan balance.

While Jack and Betty didn't "need" a Reverse Mortgage, they have found that it has allowed them to do some things that need to be done without selling their home or making drastic cuts to their living. It also is giving them the peace of mind in knowing that they have unlocked the equity in their home should they need it.

While this isn't sophisticated mortgage planning, it is solving a real life problem for real clients.

Call me if you would like to see if a Reverse Mortgage is right for you. 1-888-660-2842.

Also, visit my Reverse Mortgage blog at www.OregonReverseMortgageNews.com

What is a Reverse Mortgage

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Sun, 01 Jun 2008 22:16:07 -0500

Many seniors are finding themselves House Rich and Cash Poor. There just doesn't seem to be enough money left over at the end of the month, or they are having to tap into the principle of their retirement funds in order to enjoy a comfortable retirement.

A Reverse Mortgage is a financial tool for seniors that allows them to unlock the equity in their homes. While it is technically a loan against the equity, it has several key differences from a traditional, or forward, mortgage. To find out more about a reverse mortgage click on the following links:

Oregon Reverse Mortgage Article

Oregon Reverse Mortgage Video

Give me a call if you have any questions regarding a reverse mortgage. I can be reached at 503-476-3854.

Empty Nesters No More - Adult Kids Moving Back Home

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Wed, 26 Mar 2008 11:34:30 -0500

The slumping economy is now forcing baby boomers to move back with their parents, resulting in financial consequences for all. Some have lost jobs. Others are suffering the consequences of overextending themselves with larger houses then they could afford, real estate investments gone bad, or just buying to much "stuff". While this is inconvenient for the "kids", it can be devastating for the parents.

According to an Associated Press article more and more "kids" are moving back home with their parents to help make ends meet.

Financial planners report receiving many calls from parents seeking advice about taking in their grown children following divorces and layoffs. Kim Foss Erickson, a financial planner in Roseville, Calif., north of Sacramento, said she has never seen older children, even those in their 50s, depending so much on their parents as in the last six months. "This is not like, 'OK, my son just graduated from college and needs to move back in' type of thing," she said. "These are 40- and 50-year-old children of my clients that they're helping out."

Parents "jeopardize their financial freedom by continuing to subsidize their children," said Karin Maloney Stifler, a financial planner in Hudson, Ohio, and a board member of the Financial Planning Association. "We have a hard time saying no as a culture to our children, and they keep asking for more."

But plenty of well-meaning parents must delay retirement or scale back their dreams because they have to help their children, Stifler said. Parents feel guilty if they don't offer help, but she warns them to be careful with their savings.

A new survey by the retiree-advocacy group AARP found that one-fourth of Generation Xers, those 28 to 39 years old, receive financial help from family and friends. The on-line survey of nearly 1,800 people ages 19 to 39 also found 57 percent believed they were "financially independent." But in a separate question, 33 percent said they received financial support from family and friends."

This combined with the inflation, decreasing home values and an unstable economy, could jeopardize the retirement of many seniors. One option that will become more and more necessary for some is to access the equity in their home through a government insured Reverse Mortgage. Used judiciously, a Reverse Mortgage can supplement the retirement income without having to eat up the principle of the retirement account.

Feel free to call if you have any questions. Larry Morris 503-421-0096.

102% Financing for Sherwood Oregon

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Wed, 26 Mar 2008 09:56:24 -0500

102% Financing for Sherwood, Oregon.

Guaranteed!!

It is becoming harder and harder for a home-buyer to purchase a home, yet there are still many affordable homes if you have a down payment or the advantage of a program that helps you qualify for more home.

Through a litle used federal government loan program, we are able to offer financing up to 102% of the appraised price on the purchase of a new home. This allows for the purchase price, seller contributed closing costs and the cost of the one time mortgage insurance.

Eligible Persons

Have an adequate and dependable income.
Must be a U.S. citizen or be legally admitted to the United States for permanent residence.
An adjusted annual household income that does not exceed the published limits for Washington county . Call me for information on the income limits. Income includes the total gross income of the applicant, co-applicant, and any other adult in the household. It excludes certain expenses and adjustments. The larger the family, the more income is acceptable
A credit history that indicates a reasonable willingness to meet obligations as they become due.
Demonstrate repayment ability.

How to Apply

Click on the following link. Oregon Rural Loans

Homes that Qualify

Guaranteed loans can be made on either new or existing homes.
Plumbing, heating, water, waste disposal, and electricity must be certified as adequate and the dwelling must be free from termites and dry rot.
No restrictions exist on the size or design of the dwelling financed, but must be considered modest.
Must be a residence, not a farm.
Dwellings with in-ground swimming pools, are prohibited.
Homes must be located in rural areas. Rural areas include open country and places with a population of 10,000 or less and, under certain conditions, towns and cities with less than 20,000 population. Call me for a list of additional eligible areas..

Larry Morris is a loan Officer with Equipoint Financial Network in Newberg, Oregon. He specializes in relocations and Sherwood, Oregon neighborhoods and Yamhill County. He is a member of the Sherwood Chamber of Commerce.He can be reached at larry.morris@equipoint.com. His website is www.PDX-Mortgage.com. This material is copy protected 2007 by Larry Morris, Mortgage News that Matters. All Rights Reserved His opinions do not necessarily represent the views of Equipoint Financial Network.

Licensed in: OR, WA.

New Home Sales at 13 Year Low

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Wed, 26 Mar 2008 09:36:13 -0500

According to MarketWatch, "Sales of new homes in the United States fell to a 13-year low in February, dropping 1.3% to a seasonally adjusted annual rate of 590,000, the Commerce Department estimated Wednesday. Sales have fallen four months in a row and are off about 30% in the past year. The number of homes on the market dropped by 2.1% to 471,000, the lowest since July 2005, an indication that builders are trying to work off their bloated inventories of unsold homes. The inventory represented a 9.8-month supply at the February sales rate, unchanged from January and the highest since 1981. The median sales price fell 2.7% in the past year to $244,100."

This sounds bad, and for the most part it isn't great news. However, until we can get the "bloated inventories of unsold homes" off of the market, we won't see real improvement. Builders are still sitting on homes they started before the credit crunch when it was easy to get a loan. Now, they are faced with unsold properties, paranoid borrowers (or bargain seekers) and construction loans now due. Many are still holding out for sales prices that they easily could have received last summer.

Once we get to a healthy level of homes for sale, both new and existing construction, we will see prices stabilize and a "normal" market.

In Oregon, we're lucky, existing homes are still appreciating in most markets and it's still a great time to buy. There are still some great loan programs available for most borrowers.

JP Morgan to buy Bear Stearns? Get ready for a rough Monday!!

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Sun, 16 Mar 2008 19:03:08 -0500

According to MarketWatch, J.P. Morgan Chase & Co. reportedly has agreed to buy Bear Stearns Cos. for $2 a share in a stock-swap deal. Evidently the set price will be $2 per share. It appears that both boards have approved the sale and are trying to put it together prior to Monday's Asian market opening.

Get ready for a rough Monday. The markets will not like this. It has the possibility of sending Mortgage Rates much lower since they generally move in the opposite direction of the Stock Market. However, since Bear Stearns is a strong player in the mortgage industry, Mortgage Backed Securities might not like it either.

While it's curious that a couple of days after a Fed bailout they are selling at a bargain, the "loan" was for only 30 days. Who knows what pressure the Fed put on them for a quick resolution to stabilize the markets. It will be interesting to follow.

Since we ended Friday in a nice position for Mortgage Rates, it might be prudent to lock rates tonight if you have a lender who allows weekend locks. If not, get ready for an interesting day!

Larry Morris is a Certified Mortgage Planning Specialist (CMPS) with Equipoint Financial Network in Newberg, Oregon. He specializes in financing for Senior Citizens and Rural Properties. He can be reached at larry.morris@equipoint.com. His website is www.PDX-Mortgage.com.

Are You Commiting Fraud With Seller-Paid Concessions Pt 2

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Thu, 06 Mar 2008 12:22:59 -0600

If you are adding seller paid concessions on top of the purchase price in an amendment do not be surprised if the loan doesn't close!! This "common" practice has been a borderline fraud issue for a while. CWBC, has now made it official that they will no longer fund loans where the Purchase Agreement has been modified (increased) to cover seller concessions.

In an email from my Account Executive today:

"Purchase Price/Property Value

I want to make sure that you are aware of our policy regarding adjusting the purchase price of a property upward to cover the seller paid closing costs after the initial sales agreement. This is not allowed! If you have an accepted offer, we can not allow them to raise the purchase price to cover the closing costs. The original purchase price would have to be used as the value. (Or, the appraised value if it is less) If your borrowers and the sellers agree to the seller paid costs up front, it is totally acceptable for the seller to pay for the closing costs and prepaids up to the allowable percentage for the loan program. If they want to change it after the fact, and raise the purchase price to cover the fees, that is when it isn't allowed. It can appear that they are artificially inflating the value to cover the closing costs.

So, make sure that when you send in your file to us all of the negotiations have been made between the buyer and the seller. The original purchase agreement should spell out the seller contributions, if applicable. Let me know if you have any questions."

I wrote about this in a post entitled "Are You Committing Fraud With Seller-Paid Concessions?" This was featured and the responses were all over the map. Some agreed and others felt that I was wrong.

My stance was based on a CE classI took over 2 years ago on mortgage fraud taught by an expert in the field. One of his speakers was the Oregon Asst. Atty Generalwho confirmed what was being taught.

I highly recommend that you read the previous post as it gives more clarification as to why it's considered fraud and some work-arounds.

Countrywide isn't calling it fraud, but are no longer allowing it. I haven't checked with my other lenders, but would assume that they have similar practices.

Loan Officers: Stop suggesting that the purchase price be increased. If you get an offer that has it, be sure to clarify with an underwriter that they will allow it.

Realtors: Find out up front if your buyers are going to need Seller-paid Concessions and build them into the initial Purchase Agreement.

Buyers: Make sure that you let your loan officer and Realtor know that you will need Seller-paid concessions built into the original purchase agreement, even if they suggest that you add it later.

Sellers: Don't be afraid of Seller-paid concessions, it's only 2-6% of the sales price. If it means a closed sale, then it could still be worth it. Have the discussion with your Realtor when you are determining the price that you want to start with PRIOR to listing the home.

UPDATE:

I found a post online that sheds some interesting light, Another Look at "Sellers' Concessions" in Real Estate by Stephen J. Dubner. It speaks to some of the issues raised in the comments. If there is full disclosure, what's the harm? Well, here's an interesting take from the seconday market's perspective. It's a pretty chilling assessment of today's market written in June of 07.:

"...In other words, where is the fraud if everyone is aware that this is going on? However, an astute observer must ask two questions: (1) if the seller had advertised her house in the market and the highest bidder was $200,000, how did the appraiser just a few short weeks later appraise the home for $240,000?; and (2) why doesn't the bank just advertise that they are willing to provide loans in excess of 100% of the contract price?

The answer to this riddle may lie in the fact that most banks securitize their home loans - that is, they do not hold these loans on their balance sheets but sell them to the capital markets. While there may be no fraud on the buyer, the seller, or the bank, there may yet be a fraud if this new type of financing is not fully disclosed to the capital market investors.

If this practice is disclosed, then it can be presumed that the investors factor it into their models and price their purchases of mortgage backed securities accordingly. If it is not, then it is a safe assumption that they are holding a portfolio that is much riskier than they had bargained for. If the loan was in excess of the market value from Day 1, as the housing market declines, this difference - and the capital market investors' losses - will grow accordingly.

As they start to lose money on these portfolios, the willingness of the capital market investors to supply of capital to the housing market will decline. When people are unable to obtain mortgages, the demand for houses will fall. As demand falls house prices will fall. And as house prices fall, the losses that capital market investors sustain will increase, making them less willing to supply capital to the housing market ..."

Kind of sound like where we're at today?

2nd Update: An Appraiser Weighs In

Sara Goodwin posted on the previous blog a few minutes ago and I asked her permission to place that post her. I feel it is relevant to the discussion.

"Hello Larry -

Excellent post. I have a friend that is an appraiser and loan officer who went to a similar class with Tim Spencer. He said that LOs had the same reaction as you stated (especially after going over the fines for such incendences).

Tchaka wrote the following:

On the other side of the coin, appraising is an art, not a science and there is an allowable leeway. 3% leeway isn't out of whack, so by that token, that $100k home might really be worth $103k.

Where I think it gets more complicated is in your notion that appraisers will take the seller concessions into account when appraising. That may be so, but most realtors don't take that into consideration when pricing homes. Does every MLS even give that info? So if some realtors don't know and they're pricing based on sales price alone, they are manipulating the market.

Now, the Oregon ACLB (appraiser's board) sent out a letter last year that said in short: Realtors are not required to disclose concessions to the public, but we appraisers are required to ask. This means that if the concession information is not disclosed to us (which is not required) then we have to make the assumption that there were no concessions. Imagine report after report with 3% concessions that were not confirmed for the sales comparison adjustments. Compounded over time, it does make a difference. It will falsely increase values.

RMLS has this dandy private remarks area where Realtors can go in after the sale closes and type in any concession information, short sale, etc. I can't tell you how much this helps everybody because I don't have to hold up an appraisal waiting for a call-back from a Realtor regarding concessions...

... It occurred to me that I wrote a post on this very subject a while back. Here is the link to the post with the letter from the ACLB. "

Again, it looks like the issue is full disclosure. If seller concessions were used and the RMLS wasn't updated to reflect it, then future comps could be artificially inflated.

When do Christians go to Heaven?

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Mon, 11 Feb 2008 12:21:51 -0600

In a thought provoking book, Bishop N.T. Wright states that the church is deceived in it's belief that when Christians die they immediately go to heaven. His belief, supported by his interpretation of scripture is that we enter a state of conscious rest until Christ's return.

Before you dismiss him as another liberal theologian, Bishop Wright has been praised for his staunch defense of the literal resurrection of Jesus Christ.

I want to hear what you have to say, but I ask that you please read the article "Bishop: Christians don't go to heaven" first. It is short and thought provoking.

I can't say that I am completely for or against what he says. I am Bible College trained, a former church staff member. I led several ministries and taught classes. I am what I would consider to be fairly Bible literate.

So, let's hear what your thoughts are.

Will you Benefit from the New FHA limits?

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Fri, 08 Feb 2008 16:19:30 -0600

The US Senate passed an expanded version of HR 5140 - an economic stimulus package that includes a temporary increase in the conforming loan limits from $417,000 to as high as $729,750 in high cost areas. It is expected to be passed by the House and signed into legislation. The emphasis here is on temporary.

So how does this affect you and the markets you are in? I'm a member of the CMPS Institute and they have released some quick guidelines;

"The two things you must know in order to determine if you are in a high cost area:

1. You must know the formula. If 125% of the local area median home price exceeds $417,000, the temporary loan limit would be that 125% of the median home price with a cap of $729,750.

2. You must know the median home price in your area. According to HR 5140, the Secretary of Housing and Urban Development will publish the median house prices within 30 days. We contacted the Public Affairs office of HUD directly to ask if there is anything definitive to reference in the interim, and they said, "no." The Wall Street Journal published median house prices recently, and you may want to reference this information to get an idea of which areas will exceed the $417,000 limit. The median housing prices can be found in the second graphic on this web page. In order to see the median housing price in descending order, click on Price ($) in the chart. "

As an example, in my area, Portland OR, the median home price is $297,629. Using the formula, we would arrive at the following

Median Home Price:       $297,629
Temporary Factor:               125%

Temporary Loan Limit:   $372,036

In our case, the old limit of $417,000 stays in effect.

If the HUD uses current published prices, the median Home Price is going to need to be at least $335,000 for you to be able to refinance a Jumbo loan into a conforming loan.

My 2 cents: While this will help some of the hardest hit areas, it still falls short. Areas with a lot of low priced home skew the median home price. In every market there are pockets of areas that are more expensive then others. It also doesn't necessarily account for the average income in an area. We have a lot of high priced home that won't move, in large part due to Jumbo pricing and the inability to get 2nd mortgages.

Anyway, for those of you that will see relief, go to work!!

Let me know how these changes affect you.

Update: Andy Perry caught an error in my calculation so I corrected it. Thanks Andy

Market Report - Like a Bull in a China Store

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Thu, 24 Jan 2008 13:21:34 -0600

Wow, what a difference a day, or for that matter, a few hours make! Yesterday, shortly after my post the stock market rallied and we lost about .75 basis points on the mortgage backed securities, and so far today another .31 basis points. This means that while we were looking at a 5% rate on a 30 year fixed rate loan yesterday, today that same loan will is at 5.5%. Those who locked in yesterday, good job!!

On another note, part of the new economic stimulus bill being worked on in Washington DC includes a temporary provision to allow the conforming loan amount to be lifted. The amount will vary based on the average home price in an area. Of course, California will see the largest increase. For those of you with loans above $417,000 and below $500,000, this could present a great opportunity to refinance, or purchase at a very attractive rate. As an example, a Jumbo 30 year fixed loan with one of my lenders comes in at 6.75% today. So, that could result in more then a 1% rate reduction. On a $450,000 loan, this is a monthly savings of around $300!!

Call me if you, your friends or clients have any questions.

Larry Morris is a Certified Mortgage Planning Specialist (CMPS) with Equipoint Financial Network in Newberg, Oregon. He specializes in helping clients maximize their equity position through proper debt structure and financing for Senior Citizens He is a Board Member of the Sherwood Chamber of Commerce. He can be reached at larry.morris@equipoint.com . His website is www.PDX-Mortgage.com .

Portland Oregon - The Best Place to Have a Baby

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Thu, 24 Jan 2008 12:57:08 -0600

FitPregnancy Magazine has listed Portland, OR as the top city in the nation for having a baby. Just another reason to live or move here. Portland, and the surrounding cities are considered some of the best places to live for many reasons, and according to a number of different sources.

In this study, Portland ranked high on low maternal and infant mortality, health of baby, breastfeeding, use of midwives, doulas and lactation consultants. The availability of high-risk pediatricians was also stated as well as the number of parks and state laws allowing breast feeding in public.

So, if you live here, CONGRATULATIONS!! If not, pack up and move here. Home values are relatively stable and I've got a loan program with your name on it.

Larry Morris is a Certified Mortgage Planning Specialist (CMPS) with Equipoint Financial Network in Newberg, Oregon. He specializes in relocations, helping clients maximize their equity position through proper debt structure, as well as financing for Senior Citizens. He is a Board Member of the Sherwood Chamber of Commerce. He can be reached at larry.morris@equipoint.com . His website is www.PDX-Mortgage.com .

Lions, Tiger and Bears...Oh My - Market Report

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Wed, 23 Jan 2008 10:35:34 -0600

What was looking like a ho-hum week has turned into a block buster. While our markets took Monday off to celebrate Martin Luther King Jr's birthday, the European and Asian markets tanked in fear of a US/Worldwide recession. In reaction to that, our Fed cut the Prime rate by .75% in fear of a major Wall Street sell off. Well, we still saw a major sell off, in part because of what happened overseas, and probably in part due to the unexpected move by the Fed. Wall Street doesn't like surprises.

Today started out with more of the same, but stocks are starting to bounce back.

So, what does this have to do with mortgage rates? Two things.

1) While a Bear market is bad for stocks, it is great for bonds. Long term mortgage rates are essentially bonds and when investors pulled money out of stocks they had to put it somewhere, and one of the places was long term mortgage backed securities. We are at or below 5% now on a 30 year fixed rate loan!! This is good for those who can qualify.

2) The Fed reducing the Prime Rate lowers the interest rate on most Home Equity Loans. So watch your next statement, you should see a nice reduction in the rate that you are paying. This is money in your pocket.

My Advice: The pendulum always swings back. We've seen a major swing away from stocks to bonds, and it's just a matter of time for it to swing back. Bond traders will at some point take some of the money off the table to make a profit. We have a window of opportunity here to lock in to a great rate. If you are paying more then 6% you should really be looking at refinancing, especially if you have an ARM over 5%.

Call me at 1+888-660-2842 or email me at mailto:larry.morris@equipoint.comt to discuss your situation.

Market Snap Shot - 1/21/2008

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Mon, 21 Jan 2008 11:38:41 -0600

The markets are closed today in celebration of MLK Jr's Birthday. Mortgages rates improved last week due to weak economic news and the uncertainty of the future. This week we see 3 economic reports with a moderate impact on mortgage rates: Initial Jobless Claims, Existing Home Sales and Crude Inventories. These are all on Thursday, so watch for potential rate changes due to investors reactions on Wednesday and Thursday.

Par today on a 30 year fixed rate loan is 5.375% and 4.875% on a 5/1 ARM for the best borrowers.

These are interesting times. Mortgage rates are back to historic lows, but underwriting guidelines have tightened enough to where many will not be able to enjoy these rates. However, that said, there are some incredible programs available that can help many borrowers to refinance or get into a new home. These include FHA, USDA Guaranteed Rural Home loans and the PITI Abatement program.

As the Fed, Congress and our President work to providing an economic recovery plan, it will be interesting to see how this effects rates. Remember, a booming economy is usually bad for mortgage rates as is inflation. Time will also tell if much of the bad news is from lenders and investors writing off all of the bad debt now, rather then stretching it out over time.

In Oregon, we're seeing an interesting statistic, either we're still showing an increase of property values or a decrease, depending on how you read the figures. PMI has a new report on the nations Economic Real Estate Trends. Page 6 gives a breakdown of how the major markets are doing in comparison to 3 rd quarter 06 and 07, along with their Market Risk Index. Portland shows a decrease of 10.57% in rate of appreciation, but a 6.06% actual appreciation. So, while the trend is property values losing ground, we're still seeing realistic property appreciation. The only major markets with greater appreciation are Austin, San Antonio, Charlotte, Seattle and Nashville. Only time will tell if we are just getting back to normal or if this is a nasty downward trend.

Larry Morris is a Certified Mortgage Planning Specialist (CMPS) with Equipoint Financial Network in Newberg, Oregon. He specializes in Senior Citizen financing and Rural properties. He is a Board Member of the Sherwood Chamber of Commerce. He can be reached at larry.morris@equipoint.com . His website is www.PDX-Mortgage.com .

Licensed in: OR, WA, AL, AK, AZ, CA, CO, CT, FL, GA, HI, ID, IL, IN, IA, MD, MA, MI, MS, MO, MT, NE, NV, NH, NM, OK, SC, SD, TN, TX, UT, VT, VA,

The Home Buying Process

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Thu, 13 Dec 2007 22:20:46 -0600

Informative 6 minute video explaining the Home Buying process. This is basically a mini seminar. It explains the roles of the Loan Officer and Realtor, along with many of the steps along the way.

If you are looking at purchasing a home, or if you have clients looking, please have them review this video and then contact me for pre-approval. If you are considering buying a home, contact me as I also work with some of the best Realtors in the area.

Home Buying Seminar Video

Larry Morris CMPS
503-421-0096
larryhmorris@gmail.com
http://www.pdx-mortgage.com/

Reverse Mortgage Video

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Thu, 13 Dec 2007 19:58:11 -0600

What is a Reverse Mortgage, and who qualifies for one? How do they work? Will you lose your home? What about your Social Security benefit?

Watch this informative video to get a better understanding. If you have any questions regarding how these programs work for you or your loved ones, please let me know.

Reverse Mortgage Video

Pay Your Mortgage Off in 1/3 to 1/2 the Time.

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Fri, 07 Dec 2007 15:58:11 -0600

Owning a home is a wonderful thing. There is a sense of accomplishment and joy knowing that your home is yours. Yet the reality is that most of us don't really "own" our home. The bank does. We found a home that we like and made an offer on it. Unfortunately, we had to borrow money in order to actually buy it. Now, we find ourselves in a situation where we pay at least twice what we borrowed back, mostly in interest payments. ( On a $200,000 loan at 6.125% if the loan went the full 30 years, the total interest paid would be $237,479.)

There are several ways to "beat the system". You can try bi-weekly payments or make occasional extra payments to principle. While these can help shave some of the interest off, they often require you to change your standard of living to do so.

There is a way however, to pay your home off in 1/3 to 1/2 the time and save yourselves tens of thousands of dollars of interest that the bank would otherwise get.

I am certified by two companies who can help you accomplish this, however with slightly different strategies. Another, which you can do by yourself is available, but harder to do. All three can accomplish the goal in about the same amount of time. Each has it's own pluses and minuses.

What's best for you? It depends on your situation. I would love to discuss it with you.

Click on the 2 following links for short video's explaining the systems . The videos require Adobe Flash viewer. If you do not have it, you can download the driver at Flash .

Money Merge Account

4 minute intro video

To find out more on how easy it is to get your accounts merged navigate through our website.

Larry Morris, UFF Independent Agent: UFF877401

8 minute intro video

For more information on how this can help you, click on the link at the bottom of this page.

Both of these systems are designed to cancel tens of thousands of dollars in interest on your existing mortgage allowing you to pay off your home, free and clear, in as little as 7-11 years.

This savings is made possible by merging the "spread" between checking/savings accounts and mortgages traditionally in favor of the financial institution back to the benefit of you, the consumer. This unique system made popular over the past decade in Australia and the UK and are now available here in the US. A mortgage-free future is closer than you imagine.

Learn how these systems can help you save tens of thousands of future mortgage interest without any lifestyle changes and then request your personal Money Merge Account analysis. There is no cost or obligation.

The main differences between the two are that the UFirst Money Merge Account is software based and often does not require you to refinance your existing 1st or 2nd mortgage. The CMG Home Ownership Accelerator is a 1st position Home Equity Line of Credit with a checking account tied directly to it.

These are not a bi-weekly or debt roll down system.

To find out more, click on this link and omplete the short form at the bottom of the page.

Tell Me More

The Solution to HR3915

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Tue, 20 Nov 2007 12:06:32 -0600

A lot has been said about the detrimental effects of HR3915 and Title 3 , but this post by Matthew Graham sums it up best. HR3915 and Title 3

For the most part the market has taken care of the problem. The "bad" loans have gone away and a lot of the "bad" actors are out of the business. But, do we really need the "State" to limit our choice of what type of loan we should be able to place on our own home? We already have enough laws on the books to put the bad guys away. Do we really need the Govt. to make it even harder and more expensive to get financing?

Mr. Graham proposes something really radical. Make people read their contracts or be accountable for not doing so. He proposes, and I agree, that a simple 1 page summary explaining the terms of the loan would help eliminate much of the confusion. While he states that it should be presented at closing, I propose that it should be part of the GFE, and be required to be sent out within 3 days of any proposed changes. Just a simple summary of terms.

What are your thoughts?

Do we need to revamp the system?
Is the market taking care of itself?
To what degree do we (the State) need to protect us from ourselves?

Contact Your Congressman

SIGN THE PETITION

The Anatomy of a Mortgage Rate

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Sat, 17 Nov 2007 20:11:42 -0600

There is a lot of discussion about Yield Spread (YSP) or Rebate. Is it a rip-off or is it in the client's best interest? The bottom line is that it is a part of how our price sheets are constructed and how we price loans. Mortgage Brokers do it and so do banks. One is just more transparent then the other. Whether it is right or wrong depends more on the situation and the client/lender relationship.

Before we can answer that question, I think it helpful to understand the technical aspects of a rate sheet and how a rate is calculated.

First, let's define the components of a rate.

Par - the break-even point where lender is willing to sell a loan. Expressed as "0".

Discount - The cost associated with buying an interest rate down. Usually expressed as a "-" number and is a % of the loan amount. Discount is usually paid by the borrower.

Yield Spread (YSP) or Rebate - The cost associated with buying an interest rate up. Usually expressed as a "+" number and is a % of the loan amount. YSP is paid to the mortgage broker.

Adjustments - fees that are added to or subtracted from the price or rate. These take into account different characteristics of the unique borrower or property. These are generally "risk" based.

Price - The cost associated with determining the final interest rate. This takes all adjustments into consideration and is then added or subtracted to the Discount/YSP columns in order to arrive at a final rate.

As you read on, please keep your opinions in check. This isn't an exercise to determine whether of not YSP is right or wrong. It's an exercise to show how rates are calculated. In another post, I'll elaborate on how YSP can be used for a client's best interest. But remember. There rates are wholesale. Mortgage brokers have costs associated with doing business. Some of these costs are passed through to the client via a slightly higher interest rate.

Here's an example of what a rate sheet looks like. Keep in mind that this is just one product on a very crowded rate sheet.

Base Rate Sheet

This is a 30 year Fixed Rate loan . There are 4 columns. On the far left is the Note Rate. This is the interest rate that a borrower would pay. The next 3 columns are the number of days that a rate would be locked, or guaranteed, at. For this discussion, we're going to assume that the rate will be locked for 12 days and all pricing of the loan will use that assumption.

Base Interest Rates:

5.25% could be purchased by the borrower for 3.375 points, or 3.375% of the loan amount.

5.875% would be Par.

7.125% would provide the mortgage broker with a YSP of 3.5% of the loan amount

Adjustments

Here's a couple quick down and dirty pricing examples.

A) Mr. Smith wants to purchase a $200,000 home. He has a 700 credit score and will bring 20% down. This would result in a loan of $160,000.

In Mr. Smith's situation, there are no adjustments to the pricing of the loan, so a Par rate would be 5.875%

If he wanted to buy the rate down to 5.6255% it would cost him $2000 to do so or 1.25% of the loan amount

If the lender wanted to receive 1 point in YSP, he would charge an Interest Rate of 6.125%. This would result in a commission of $1800, or 1.125% of the loan amount.

B) Mr. Smith wants to refinance his current mortgage and pull $20,000 in cash out to pay off some debt. He still a 700 credit score and his current mortgage is $140,000. With the addition of $20,000, he's still at 80% Loan to Value.

There is a cost of .5% in order for Mr. Smith to access the cash in his home.

Par for Mr. Smith would now be 6%. This would pay .125% in YSP, but would be the closest to PAr. If Mr. Smith still wanted the 5.875% rate, there would be a cost of .625%, or $1000, in order for him to get it.

Why does it cost more?

There is slightly more risk associated with the loan when someone pulls cash out of there property.

C ) The Jones want to purchase a home. They have 20% cash down payment and a 600 Credit score.

Due to the risk associated with their poor credit, their is a 1% cost in order to do the loan. This is added to the price to come up with a new "Par" rate of 6.125%. This would pay a YSP of .125%.

So, in each of these three situations we started with the same mortgage product and lender and a base rate of 5.875%. But the final rates varied based on risk. THe mortgage Broker basicall got paid the same.

A) - 5.875 % - Purchase with Good Credit
B) - 6 % - Cash Out Refi with Good Credit
C) - 6.125 % - Purchase with Poor Credit

Hopefully this helps you to understand how rates are calculated. Again, this isn't looking at the ethics of YSP or Points, but how Mortgage Brokers all across the nation calculate rates.

Look for a future segment on how we structure rates in order to best serve our clients.

Larry Morris Earnes Certified Mortgage Planning Specialist (CMPS) Designation

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Fri, 16 Nov 2007 10:49:27 -0600

Newberg, Oregon - I have finally passed the qualifying exams to earn the Certified Mortgage Planning Specialist (CMPS) designation. It's taken me a couple of years and a lot of procrastination, but this slow down has alloed me to further my education and my ability to help you, my clients.

The CMPS is granted by the CMPS Institute, Ann Arbor, Michigan, a training, certifying and ongoing membership organization created to help mortgage professionals integrate financial planning concepts into the mortgage process. CMPS designees can offer clients strategies that encompass mortgages, debt, home equity and real estate investment.

My focus is to help my mortgage clients build and protect wealth by better managing their home equity and personal cash flow. Often I can do this without refinancing their mortgagte or changing their standard of living."

Many homeowners have become frustrated and confused with the myriad choices in today's mortgage market and the lack of both ethics and financial knowledge among many mortgage providers. The CMPS Institute is a joint effort by leaders in the mortgage and financial planning industries to raise professional standards among mortgage professionals and integrate sound financial planning advice into the mortgage process.

Today life expectancy is higher than ever before; health care costs are skyrocketing; pensions are shrinking; social security is uncertain, and corporate America has gone through one bankruptcy after another. Today's mortgage market can be a dangerous place for some consumers with certain real estate markets experiencing signs of a "bubble," and "exotic" mortgages representing a greater market share than ever before. These signs point to the fact that homeowners and buyers need expert advice on how to manage their mortgage, cash flow and home equity.

This trend toward expert mortgage advice is growing in popularity. At the CMPS Institute more than 200 mortgage professionals are taking certifying courses each month. "A mortgage professional who dedicates the time and effort to learn about these financial concepts is much more qualified, committed and equipped to serve the complex needs of today's home owner and buyer," says Gibran Nicholas, Chairman of the CMPS Institute.

The CMPS curriculum incorporates five essential skill sets including:

Financial market and interest rate analysis
Cash flow analysis
Debt analysis
Real estate equity management
Real estate investment analysis

If you would like to see what I can do for you, please contact me for a no-obligation review.

I can be reached at larry.morris@equipoint.com, or call 1-888-660-2842

For more information on the CMPS Institute go to http://http://www.cmpsinstitute.org/, or call 888-608-9800.

Our Big Tax Surprise - AMT

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Fri, 16 Nov 2007 09:45:38 -0600

Many Oregonians could be hit by a big surprise next Tax season. It's the Alternative Minimum Tax (AMT), which was originally designed to hit only the ultra-wealthy. Well guess what. You're probably considered "Ultra-wealthy".

The AMT is trapping an alarming amount of the middle class, especially those who own homes and live in states with high income tax rates. This includes Oregon. And it's getting worse. Pretty soon, over half those with incomes between $75k-100k could be victimized by the AMT.

So what is AMT, and what do we need to watch out for?

The AMT was first enacted nearly 40 years ago to ensure that wealthy taxpayers pay at least some federal income tax versus sheltering their entire income with big write-offs. This strategy worked at the time, but AMT has never been indexed for inflation, resulting in more middle-income taxpayers owing the additional tax.

All of us go through the AMT test each year. Our income is matched up with the tax brackets it falls into and the tax owed is calculated. But we also go through a second calculation: the AMT calculation. Many deductions are eliminated and the tax brackets are reduced. The tax owed under AMT is then compared to the tax owed under the bracket calculation. Then we pay the higher two taxes.

More individuals will pay the higher AMT tax since it does not allow deductions such as certain interest on some home loans, property taxes, state and local income taxes, standard deductions, or personal exemptions for children and dependents that are normally deductible under the regular tax brackets. As stated earlier, certain interest on some home loans will be wiped out under the AMT.

There are two types of home loans that can be eligible for tax deductibility.

First, there is Acquisition Debt, which allows interest to be deductible on a loan used to acquire or improve your primary or second home, with a loan limit of $1 million dollars. The good news about Acquisition Debt is that it remains deductible, even if you are subject to AMT. This makes Acquisition Debt very valuable. But once you pay off or reduce the balance of your Acquisition Debt, it is gone and only the interest on the remaining portion is deductible. So taking out a new loan at a higher amount will not give you that precious Acquisition Debt back.

The next best thing to Acquisition Debt is Home Equity Debt. Home Equity Debt has a limit of $100,000, which can be used over and above the Acquisition Debt Balance. And Home Equity Debt is flexible in that you can pay it down and pull it back out, which is not allowable for Acquisition Debt. But Home Equity Debt is eliminated under AMT. And with so many people being trapped by the AMT and also having loan amounts higher than what was used to acquire the property, the lost deduction is significant.

Congress usually passes an AMT "Patch" to help adjust for the increased amount of tax payers who become subject to AMT each year. This year is no different. The Democrats are trying to get HR3996 passed but the Republicans are against it. The Republicans state that the bill is flawed and includes other tax increases and would rather see a solution rather then an annual patch. Here are a couple of links for "both sides of the story" provided by OregonLive, the online voice of the Oregonian.

Democrat

Republican

I urge you to write you politicians and encourage them to come up with a separate AMT solution that is not tied to other "fixes". Just a simple AMT Cost of Living adjustment to protect the middle class.

How to find your:

House Representative

Senator

It's always good to check with a tax professional about your own personal scenario, and learn how this impacts you. If you need a referral to a tax pro, I'd be more than happy to make a suggestion, just give me a call!

Larry Morris is a Certified Planning Mortgage Specialist with Equipoint Financial Network in Newberg, Oregon. He specializes in relocations and Sherwood, Oregon neighborhoods and Yamhill County. He is a Board Member of the Sherwood Chamber of Commerce. He can be reached at larry.morris@equipoint.com . His website is www.PDX-Mortgage.com . This material is copy protected 2007 by Larry Morris, Mortgage News that Matters. All Rights Reserved His opinions do not necessarily represent the views of Equipoint Financial Network.

Licensed in: OR, WA, AL, AK, AZ, CA, CO, CT, FL, GA, HI, ID, IL, IN, IA, MD, MA, MI, MS, MO, MT, NE, NV, NH, NM, OK, SC, SD, TN, TX, UT, VT, VA,

What I don't Like About HR 3915 Pt 2

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Sat, 03 Nov 2007 12:48:38 -0500

As most of you know by now, Congress is looking for a solution to a very real problem. Whether election year grand standing or honest efforts to help Americans, the result could be the same. The very people they are trying to protect could be harmed.

If you are in the Real Estate industry or own a home, this will impact you! If you are self-employed or receive a 1099 you will be discriminated against!!

This Bill will be voted on Tuesday and if approved, will move to the House Floor. Please respond to the link at the bottom today!!

Yesterday I wrote about how eliminating YSP could greatly hamper the ability of the lending industry to provide appropriate loans for Americans. What I don't Like About HR 3915 Pt 1. Today I want to touch on the Stated Income component of the bill.

Stated Income, for those who aren't aware, is used in lie of fully documenting a borrower's income. When used correctly, it allows a self employed businessman or woman to get a home loan they know they can afford, but can't prove with income taxes.

The IRS code favors those who are able to take advantage of deductions. It's built into the system. There are basically 4 types of legal wage earners.

W-2 wage earner, works for someone else and receives a paycheck.
Self-employed, owns her own business.
Independent contractor, works for some one else, but is responsible for his own taxes and often expenses.
W-2 wage earner with another source of incomeworks for someone else but also has additional income.

In all 4 situations, a creative CPA will allow you to show a significant reduction in your income. This is the law and our government has approved it.

Under the new proposal, you could have 4 borrowers, all with the same credit score, all making the same amount of money. All with roughly the same personal debt. But 3 of the 4 could be discriminated against, just because they don't fit a "normal" wage earner.

Borrower A makes $100,000 per year and has w-2's to prove it. His CPA has taken advantage of legal tax deductions for family and property and while his income is adjusted for tax purposes, it's not for lending purposes. He still shows $100,000.

Borrower B makes $100,000 per year but owns his own business. His CPA has asked him to leave most of his $100,000 in the business. As a result, his taxes show minimal income, yet he has just as much spending power as borrower A. The lender will want to see 2 years tax returns, a current P&L, bank statements, and then still might not give him the same loan as borrower A.

Borrower Cmakes $100,000 per year but works for someone else. She is given a 1099 at the end of the year. Her situation is very similar to Borrower B, but most likely wouldn't be quite so extreme.

Borrower D makes $80,000 in w-2 wages and $20,000 in a hobby business. Unless he has an extremely strong case, the lender will only give credit to teh $80,000 w-2 wages.

With a Stated Income loan, all 4 borrowers can be treated equally, or at least fairly closely. At 90% loan to value, with a credit score over 700, I can get the same loan and interest rate for all 4. At lower credit scores or higher loan to values, the market prices the rate according to the associated risk.

When used correctly, a Stated Income loan is another tool that a professional mortgage planner uses to meet the needs of his/her clients. It shouldn't be used to get more home then someone can afford, but it should be available for a borrower who can make the payments.

Isee this bill as being very discriminatory towards small business and independent contractors.

Without Stated Income Loans:

We will have government controlled loan programs
Many homeowners who can afford a home will be excluded from that home or market.
Home prices will drop as many borrowers are unable to document their ability to pay.

My Solution?Continue to allow Stated Income loans but have lenders scrutinize the appropriateness and increase the penalties for Fraud. Yes, we currently have laws on the book to deal with abuse. Don't introduce new laws, enforce the ones you already have!!

If you agree please write to representative today!!

You can go here to look up and contact your representative. Just plug in your state and zip code and it populates your representative:

Larry Morris is a loan Officer with Equipoint Financial Network in Newberg, Oregon. He specializes in relocations and Sherwood, Oregon neighborhoods and Yamhill County. He is a Board Member of the Sherwood Chamber of Commerce.He can be reached at larry.morris@equipoint.com. His website is http://www.pdx-mortgage.com/. This material is copy protected 2007 by Larry Morris, Mortgage News that Matters. All Rights Reserved His opinions do not necessarily represent the views of Equipoint Financial Network.

Licensed in: OR, WA, AL, AK, AZ, CA, CO, CT, FL, GA, HI, ID, IL, IN, IA, MD, MA, MI, MS, MO, MT, NE, NV, NH, NM, OK, SC, SD, TN, TX, UT, VT, VA,

What I Don't Like About HR3915. Pt 1

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Fri, 02 Nov 2007 09:06:20 -0500

Congress in their attempt to help those who have found themselves in bad loans are going after what they believe to be the culprit, mortgage brokers. They have this misguided sense that we are Snidely Whiplash and after the money of every unsuspecting homeowner. I guess this makes Congress Dudley Do-right coming to rescue Nell. The Bankers, who used to be seen in this role have helped perpetrate this myth. Even though they supply us with our products, we are to blame. Go figure.

Anyway, back to the Bill.

The 2 main components that I disagree with are the attempt to eliminate Yield Spread and Stated Income.

This post will focus on Yield Spread. I'll try to touch on why abolishing Stated Income Loans is discrimination against small business owners later.

Yield Spread- For those who do not know, Yield Spread (YSP) is a % of the loan that the lender pays a mortgage broker to sell the loan at a slightly higher rate. We can also charge points to the borrower to get them a slightly lower rate. This allows us to help place our clients in the loan structure best suited for their situation.

The problem with this bill is that it doesn't recognize how rate sheets work, or how private enterprise works. Every product has a wholesale and retail price. Our rate sheets allow us some control of what that Retail Price will look like. We also have many lenders to choose form to help us determine what wholesale price we want to buy at. Consumers do not have to do business with us. They can choose to go to another lender.

I get paid 1 of 3 ways. I usually make 1-2% of the loan amount. I'm cheap compared to many of my associates in the industry.

Origination Fee
Yield Spread
A Combination of the Two

Often it makes sense for a borrower to pay higher closing costs and for me to increase my Origination Fee in order to get them the best rate possible. If they are planning on being in the home for many years then it averages out in their favor, usually after 2-5 years.

However, if a client is only going to be in their home for a few years then a higher rate and lower closing costs makes more sense. Also, there are times when the only way that I can make a deal work due to payoffs, equity or contractual seller concessions, is to lower my fee and charge a higher rate.

Yield Spread is a tool that when used properly, helps a professional mortgage planner best serve his client. When used improperly it can gouge a client.

The problem? Banks and Corespondent Lenders don't have to disclose YSP and will probably slide under the radar EVEN THOUGH THEY ALSO USE IT.

Without Yield Spread:

We will have government controlled rates
Closing costs will increase 1-2%

My Solution? Reduce the allowable compensation that any originator can make, whether broker, loan officer, bank employee or mortgage banker to 3-4% from all sources. This is more then fair, and significantly below current caps.

Congress gave us our caps and now are saying that we are at fault for using them. Shame on you Congress!!

If you agree please write to representative today!!

You can go here to look up and contact your representative. Just plug in your state and zip code and it populates your representative:

Larry Morris is a loan Officer with Equipoint Financial Network in Newberg, Oregon. He specializes in relocations and Sherwood, Oregon neighborhoods and Yamhill County. He is a Board Member of the Sherwood Chamber of Commerce.He can be reached at larry.morris@equipoint.com. His website is http://www.pdx-mortgage.com/. This material is copy protected 2007 by Larry Morris, Mortgage News that Matters. All Rights Reserved His opinions do not necessarily represent the views of Equipoint Financial Network.

Licensed in: OR, WA, AL, AK, AZ, CA, CO, CT, FL, GA, HI, ID, IL, IN, IA, MD, MA, MI, MS, MO, MT, NE, NV, NH, NM, OK, SC, SD, TN, TX, UT, VT, VA,

Jobs Report Just Out - Unemployment Unchanged at 4.7%

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Fri, 02 Nov 2007 08:21:53 -0500

"Nonfarm payroll employment rose by 166,000 in October, and the unemployment rate was unchanged at 4.7 percent. Job gains continued in professional and business services, food services, and health care. Manufacturing employment continued to decline, while construction employment was little changed over the month."

This according to Philip L. Rones Acting Commissioner Bureau of Labor Statistics.

Here are some excerpts of his report:

"Construction employment was little changed in October. Over the month, a job gain in nonresidential specialty trade contracting was offset by losses in the residential components of construction. Construction employment has fallen by 124,000 since its peak in September 2006, driven by losses in residential construction.

Among other housing-related industries, employment continued its downward trend in October in credit intermediation--the component of the financial activities sector that includes mortgage lending and related activities. Employment in credit intermediation has fallen by 56,000 since its peak in February. Within retail trade, building supply stores lost 7,000 jobs in October; employment in the industry declined by 47,000 over the
year."

Interesting glimpse into our economy. We appear to be holding ground as a nation, despite the losses in Building/Real Estate/Mortgage related businesses.

We are currently seeing the stock market rebound after yesterday's losses. This of course, is having an impact on the Bond Market. We are seeing a slight drop in the value of Mortgage Backed Securities, which means that we are seeing a decrease in the rate improvement that we gained yesterday. It is still early however and a lot can happen.

Rates should hold steady today with Conforming 30 year fixed at around 6% at par.

ADDENDUM: We're currently seeing a rally on Bonds which should lead to modest improvements over yesterday's rate sheets.

Information for this post provided by http://www.bls.gov/ and http://www.mortgagemarketguide.com/

Larry Morris is a loan Officer with Equipoint Financial Network in Newberg, Oregon. He specializes in relocations and Sherwood, Oregon neighborhoods and Yamhill County. He is a Board Member of the Sherwood Chamber of Commerce.He can be reached at larry.morris@equipoint.com. His website is www.PDX-Mortgage.com. This material is copy protected 2007 by Larry Morris, Mortgage News that Matters. All Rights Reserved His opinions do not necessarily represent the views of Equipoint Financial Network.

Licensed in: OR, WA, AL, AK, AZ, CA, CO, CT, FL, GA, HI, ID, IL, IN, IA, MD, MA, MI, MS, MO, MT, NE, NV, NH, NM, OK, SC, SD, TN, TX, UT, VT, VA,

When does the sale start?

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Fri, 02 Nov 2007 00:26:46 -0500

I was listening to one of my CMPS (Certified Mortgage Planning Specialist) CD's today and Barry Habib made an interesting comment. "When home prices were running high, buyers would make $10,000 to $20,000 offers above the asking price afraid that they would lose the deal. Now, people are afraid to make an offer $10,000 to $20,000 below asking price for fear that they might be over bidding. When homes weren't on sale, everyone wanted to buy. Now that they are on sale, no one wants one."

People are afraid to buy a home right now because prices might drop more. But it doesn't make sense. Historically, home prices average 6% growth. Those who bought at the top of the market in California in the early 90's and kept them homes for 10 to 15 years made a killing. There is no reason to think that the same won't happen again. Our population continues to grow and homes will continue to be needed. Prices will continue to appreciate over the long run in most markets.

Sure, we're in a period of correction, but for the long-term real estate purchaser, (those who call a house a home, and not an investment), this is a great time to purchase. You have your choice of homes, you aren't rushed to make a decision and rates are still at historic lows.

Find the home you like, get a good long-term loan and settle in for the long haul.

Larry Morris is a loan Officer with Equipoint Financial Network in Newberg, Oregon. He specializes in relocations and Sherwood, Oregon neighborhoods and Yamhill County. He is a Board Member of the Sherwood Chamber of Commerce.He can be reached at larry.morris@equipoint.com. His website is www.PDX-Mortgage.com. This material is copy protected 2007 by Larry Morris, Mortgage News that Matters. All Rights Reserved His opinions do not necessarily represent the views of Equipoint Financial Network.

Licensed in: OR, WA, AL, AK, AZ, CA, CO, CT, FL, GA, HI, ID, IL, IN, IA, MD, MA, MI, MS, MO, MT, NE, NV, NH, NM, OK, SC, SD, TN, TX, UT, VT, VA,

102% USDA Guaranteed Rural Home Loan

Larry Morris, CMPS, Newberg Oregon (NW Lending Solutions) — Thu, 01 Nov 2007 23:42:26 -0500

102% Financing for Rural Oregon.

Guaranteed!!

(You might be surprised at what's considered Rural)

It is becoming harder and harder for a first time homebuyer to purchase a home, yet there are still many affordable homes if you have a down payment or the advantage of a program that helps you qualify for more home.

Guaranteed Home Loans: Rural families and individuals may be eligible to become homeowners with the help of a U.S. Department of Agriculture - Rural Development guaranteed loan. Sometimes good credit and a steady income are not enough to qualify at a mortgage lending center. A sizable down-payment may also be required. But when the Agency agrees to guarantee a loan, lending institutions can help buyers with 100% financing, while incurring little risk. Through the Guaranteed Rural Housing Loan Program, low and moderate income people can qualify for mortgages even without a down-payment.

Eligible Persons

Have an adequate and dependable income.
Must be a U.S. citizen or be legally admitted to the United States for permanent residence.
An adjusted annual household income that does not exceed the published limits for the county in which you purchase. Call me for information on the income limits for your area. Income includes the total gross income of the applicant, co-applicant, and any other adult in the household. It excludes certain expenses and adjustments.
A credit history that indicates a reasonable willingness to meet obligations as they become due.
Demonstrate repayment ability.

How to Apply

Click on the following link. Oregon Rural Loans

Homes that Qualify

Guaranteed loans can be made on either new or existing homes.
Plumbing, heating, water, waste disposal, and electricity must be certified as adequate and the dwelling must be free from termites and dry rot.
No restrictions exist on the size or design of the dwelling financed, but must be considered modest.
Must be a residence, not a farm.
Dwellings with in-ground swimming pools, are prohibited.
Homes must be located in rural areas. Rural areas include open country and places with a population of 10,000 or less and, under certain conditions, towns and cities with less than 20,000 population. The Rural Development office in your area can detail eligible areas or provide a list of ineligible areas.

Larry Morris is a loan Officer with Equipoint Financial Network in Newberg, Oregon. He specializes in relocations and Sherwood, Oregon neighborhoods and Yamhill County. He is a Board Member of the Sherwood Chamber of Commerce.He can be reached at larry.morris@equipoint.com. His website is www.PDX-Mortgage.com. This material is copy protected 2007 by Larry Morris, Mortgage News that Matters. All Rights Reserved His opinions do not necessarily represent the views of Equipoint Financial Network.

Licensed in: OR, WA, AL, AK, AZ, CA, CO, CT, FL, GA, HI, ID, IL, IN, IA, MD, MA, MI, MS, MO, MT, NE, NV, NH, NM, OK, SC, SD, TN, TX, UT, VT, VA,