Pay It Forward's Blog

Maybe some hope for the Subprime Crisis

Pay It Forward Financial — Fri, 05 Sep 2008 13:37:49 -0500

Date: 09/04/2008

Ocwen Financial Corp. (OCN), one of the nation's leading subprime mortgage providers, has reported that delinquencies have decreased throughout the summer on the subprime mortgages it handles. The decrease seems to be as a result of the company's technology enhanced loan modification program.

Such reports reflect a light at the end of the tunnel in the middle of the subprime crisis and reveal a potential sensible approach to keeping homeowners in their homes while protecting both lenders' and investors' income.

OCN reports that delinquency rates in the 60, 90, and 90+ categories have either decreased or remained level over the last three months. The last three months have been the first sign of steadiness in Ocwen serviced loans since the beginning of the subprime calamity in 2007.

OCN services roughly 350,000 loans through its subsidiary, Ocwen Loan Servicing, LLC; about 85% of those loans are subprime.

"While it's still too early to signal an end to the subprime mortgage crisis," says Ocwen's president Ronald M. Faris, "this represents a welcome reversal of spiking delinquencies."

Mortgage applications up from a 6 1/2 yr low

Pay It Forward Financial — Wed, 09 Jul 2008 11:06:41 -0500

We love any and all positive news so we wanted to pass it on to you!

The Mortgage Bankers Association reported a 3.6 percent rise on its seasonally adjusted application index in the week ended June 27. The MBA's survey covers about half of all U.S residential mortgage applications. The jump coincides with rates falling .06 percent on a 30 year fixed mortgage from a 10 month high at 6.39 to 6.33 percent, and falling .05 percent on a 15 year fixed mortgage from 5.95 percent to 5.9 percent.

The previous week the application rate had hit a 6 1/2 year low.

What do all these numbers mean though? Yahoo Finance has made it a little clearer and reported that an index value of 100 is equal to the application volume on March 16, 1990, the first week the MBA tracked application volume. So what does a 3.6 percent increase to 477.7 mean? It means that mortgage application activity is 4.777 times higher compared to when the MBA first starting tracking the application data. That means when the market hit its high at 1856.7 during the week ending May 30, 2003 it was it was 18.567 times higher than in May of 1990.

The survey is designed to "provide a snapshot of mortgage lending activity among mortgage bankers, commercial banks and thrifts" as reported by Yahoo Finance.

Everyone, keep your head up... we are almost through this mortgage crisis (we hope).

Mortgage relief may come sooner rather than later

Pay It Forward Financial — Thu, 26 Jun 2008 10:27:27 -0500

Date: 06/25/2008

Democrats and Republicans alike are wanting credit for helping homeowners across the country in today's housing market, hence the rush for a huge foreclosure rescue bill. The Senate is very close to getting the bill passed although it still needs the Presidents stamp of approval. With a vote of 83-9 the mortgage aid plan is on track for passage in the Senate as soon as today.

This mortgage relief plan would assist an estimated 400,000 anxious borrowers, who wouldn't normally qualify for government fixed rate loans, by allowing them to dip into the $300 billion in new cheaper loans being backed by the Federal Housing Administration.

Not just any homeowner in financial distress will have access to the government's aid. Borrowers are only eligible if their mortgage holders are willing to take a considerable loss and allow them to refinance, and they would have to prove the ability to afford and make payments on the new loan.

The mortgage aid plan is also designed to help those trying to purchase their first home. The Associated Press reports the bill would provide a $14.5 billion array of tax breaks, including a credit of up to $8,000 for first-time homebuyers who buy in the next year.

President Bush may still veto the bill, but White House spokeswoman Dana Perino feels like the Senate measure has "some really good aspects" and that Congress is "on the right path".

For more Mortgage News visit www.piffinaincial.com/mortgagenews.php.

President Bush and Congress Focus on Housing

Pay It Forward Financial — Tue, 24 Jun 2008 11:53:49 -0500

Date: 06/23/2008

President Bush's time is limited in office and he is checking off his to do list. After coming to an agreement on terrorist surveillance and Iraq war money, President Bush and Congress are on to the next item of business; a prospective housing rescue. With elections on the horizon this could be their last ditch effort in getting anything passed before campaign season.

There have been reports of President Bush threatening to veto the measure even though it has met some of his well known demands such as ''modernizing the Depression-era Federal Housing Administration and creating a new regulator for the government-sponsored mortgage companies Fannie Mae and Freddie Mac'' as reported by Time. Both Democrats and Republicans alike agree that the housing legislation is crucial and hope to come to an agreement with the President soon.

The Senate will vote Tuesday on the proposed bill. If the bill were to pass it would allow the Federal Housing Administration to insure $300 billion in new loans. In doing this, home owners that are currently unable to afford their house payments could possibly refinance into lower fixed rate mortgages.

CNN Money reports Sen. Richard Shelby of Alabama, the top Republican on the Senate Banking, Housing and Urban Committee, as saying "the American people expect us to provide effective and timely solutions the best we can". Team Bush and Team Congress are attempting to do just that.

For more mortgage news and market updates visit www.piffinancial.com/mortgagenews.php.

Will I save money going directly to a mortgage lender?

Pay It Forward Financial — Thu, 19 Jun 2008 14:46:20 -0500

Not necessarily. In fact, if you are a reasonably astute shopper, you will probably do better dealing with a mortgage broker. Mortgage brokers do not add any net cost to the lending process, because they perform functions that would otherwise have to be done by employees of the lender. Furthermore, because mortgage brokers deal with multiple lenders -- in a typical case, 25 to 30, sometimes more -- they can shop for the best terms available on any given day. In addition, they can find the lenders who specialize in various market niches that many other lenders avoid, such as loans to applicants with poor credit ratings, loans to borrowers who do not intend to occupy the property, loans with minimal or no down payment, and so on.

VS.

For more information please visit www.piffinancial.com or give us a call at 877-771-7377.

When does it make sense to refinance?

Pay It Forward Financial — Thu, 19 Jun 2008 14:32:17 -0500

Usually people refinance to save money, either by obtaining a lower interest rate or by reducing the term of the loan. Refinancing is also a way to convert an adjustable loan to a fixed loan or to consolidate debts. The decision to refinance can be difficult, since there are several reasons to refinance. However, if you are looking to save money, try this calculation:

Calculate the total cost of the refinance Calculate the monthly savings Divide the total cost of the refinance (#1) by the monthly savings (#2). This is the "break even" time. If you own the house longer than this, you will save money by refinancing. Since refinancing is a complex topic, consult a mortgage professional.

For more information on refinancing your property, give us a call at 877-771-7377 or check out our website at www.piffinancial.com

For more Real Estate and Mortgage FAQ's please visit www.piffinancial.com/questions.php.

Hope Now for those in Mortgage Distress

Pay It Forward Financial — Thu, 19 Jun 2008 10:40:00 -0500

The Hope Now Alliance announced yesterday new efforts that are designed to expand and expedite procedures for homeowners that are at risk of foreclosure. The Hope Now Alliance defines itself as "an alliance between counselors, servicers, investors, and other mortgage market participants to maximize outreach efforts to at-risk homeowners and help them stay in their homes."

Hope Now was suggested by the Department of Treasury and the Department of Housing and Urban Development in October 2007 and its members now consist of big lenders such as Bank of America, Citifinancial, GMAC, HSBC, and JP Morgan to name a few.

Hope Now and its members have decided upon possible alternates to foreclosing such as a loan workout, loan modification, repayment plan, and temporarily suspending monthly payments; there is even a "Homeowners HOPE Hotline" that is staffed with HUD approved credit counselors that will answer questions and assist in finding the best option for its callers.

The acceleration in procedures for aid comes from the new guidelines that require mortgage industry representatives to meet certain deadlines for taking action once a homeowner contacts the alliance with a request for assistance.

Hope Now has also launched the industries first-ever course of action in dealing with second mortgages. Faith Schwartz, executive director of Hope Now, told HousingWire.com "These new guidelines will greatly expedite the process of preventing foreclosures. The industry is committed to helping distressed borrowers stay in their homes whenever possible and these guidelines will help in that effort."

According to Forbes.com over 1.2 million homeowners have received help from the Hope Now Alliance and its resources. Jonathan L. Kempner, president and CEO of the Mortgage Bankers Association said "It's critical to remember that nobody benefits when a homeowner faces foreclosure."

For more information visit www.piffinancial.com/mortgagenew.php.

Supporting Local Business's

Pay It Forward Financial — Tue, 17 Jun 2008 16:20:27 -0500

Please check out our website at www.piffinancial.com then click on the "Proud Partners" tab and you will find a page that looks similar to this. We will be constantly adding new business's to this section so check back frequently. You will also find many other useful resources at www.piffinancial.com. If you have any questions please feel free to give us a call at 925-828-0302. Also, any comments to help us improve our website are greatly appreciated. Please don't be scared to call, we are a no pressure brokerage and we will not hound you to refinance or buy real estate.

	Please click any of the pictures or logo's for direct link
	Anni Hagfeldt Alain Pinel Realtors 900 Main Street Pleasanton, CA 94566 Phone: 925-417-8627 anni@apr.com www.annihagfeldt.com

	Daniela DelValle Affinity Appraisals Serving Contra Costa & Alameda County Phone: 510-919-4707 Fax: 925-905-5233 affinityappraisal@gmail.com

	Tim Huether Huether Insurance Agency 319 Diablo Road, Ste. 100 Danville, CA 94526 Phone: 925-820-8432 Fax: 925-820-8619 tim@huetherinsurance.com

	Katie Farthing Arbonne International Phone: 925-989-2642 katie.farthing@yahoo.com www.arbonne.com Skin Care, Vitamins, Color, Weight Loss, Aromatherapy and Much More! Call Katie, let her know Pay It Forward sent you and you will receive 25% off of your order!

	Jeff Hamilton Kits 4 Disaster Survival Phone: 888-510-0678 Fax: 925-292-2739 jhamilton@ehamiltonenterprises.com www.kits4disastersurvival.com When checking out, enter coupon code "PayItForward" to receive 10% off of your order!

	Dana Marazzito Toyota 101 525 East Bayshore Road Redwood City, CA 94063 Phone: 877-203-4383 Fax: 650-364-9068 danamarazzito@toyota101.com www.toyota101.com

	Kenneth Bergquist Stoddard, Bergquist, Wood & Anderson, LLP 1470 Maria Lane, Suite 300 Walnut Creek, CA 94596 Phone: 925-938-6100 Fax: 925-938-4354 krb@wcjuris.com www.wcjuris.com

Gas Saving Tips!

Pay It Forward Financial — Tue, 17 Jun 2008 15:58:36 -0500

Drive Sensibly

Aggressive driving (speeding, rapid acceleration and braking) wastes gas. It can lower your gas mileage by 33 percent at highway speeds and by 5 percent around town. Sensible driving is also safer for you and others, so you may save more than gas money.

	Fuel Economy Benefit:	5-33%
	Equivalent Gasoline Savings:	$0.20-$1.35/gallon

Observe the Speed Limit

While each vehicle reaches its optimal fuel economy at a different speed (or range of speeds), gas mileage usually decreases rapidly at speeds above 60 mph.

You can assume that each 5 mph you drive over 60 mph is like paying an additional $0.30 per gallon for gas.

Observing the speed limit is also safer.

	Fuel Economy Benefit:	7-23%
	Equivalent Gasoline Savings:	$0.29-$0.94/gallon

Remove Excess Weight

Avoid keeping unnecessary items in your vehicle, especially heavy ones. An extra 100 pounds in your vehicle could reduce your MPG by up to 2%. The reduction is based on the percentage of extra weight relative to the vehicle's weight and affects smaller vehicles more than larger ones.

	Fuel Economy Benefit:	1-2%/100 lbs
	Equivalent Gasoline Savings:	$0.04-$0.08/gallon

Avoid Excessive Idling

Idling gets 0 miles per gallon. Cars with larger engines typically waste more gas at idle than do cars with smaller engines.

Use Cruise Control

Using cruise control on the highway helps you maintain a constant speed and, in most cases, will save gas.

Use Overdrive Gears

When you use overdrive gearing, your car's engine speed goes down. This saves gas and reduces engine wear.

Note: Cost savings are based on an assumed fuel price of $4.08/gallon.

For more information on how to save gas visit http://www.fueleconomy.gov/FEG/drive.shtml.

For information on how you can save hundreds or thousands of dollars a year on your mortgage visit www.piffinancial.com or give us a call at 877-771-7377.

Mortgage Update

Pay It Forward Financial — Tue, 17 Jun 2008 15:50:52 -0500

Market Update:

Manufacturing in New York region dropped 8.7% in June, more than the market-estimated 2% monthly drop. The US Dollar fell against the Euro and Yen. Oil touched a new record of $139.89 a barrel today as investors moved into commodity investments to protect against Dollar depreciation. The national average price for a gallon of regular unleaded gas rose to another record high of $4.077. More than half of the states in the country are paying over $4 a gallon for gas. The Stock market traded lower, dragged by the soaring oil prices and concerns over the weakening dollar. The Bond market is relatively flat after Friday's late sell off. The current rate sheet pricing is about 0.25 worse compared to that of Friday.

FHA News:

Assistant Secretary for HUD, Brian Montgomery has executed a Waiver of Requirements of 24 CFR 203.39a(b)(2) to support mortgage companies and financial institution's ability to sell foreclosed properties.

Under the new waiver, mortgage companies and financial institutions will no longer be required to keep properties vacant for 90 days before reselling. Prior to the waiver, the existing HUD policy only allowed state/ federal chartered banks and savings and loans the ability to sell properties without waiting the required 90 days. The temporary waiver, which was signed on June 10th will expire in 1 year.

For more Mortgage News visit www.piffinancial.com/mortgagenews.php.

We need more Fun Facts!

Pay It Forward Financial — Fri, 13 Jun 2008 13:52:14 -0500

Hello Everyone!

We are running out of interesting facts for the "Fun Fact" section of our website.

Please email us your interesting facts, if they are good, we will put them on the website! If you would like, we will also link you to the Fact(s) you submit (example: John from Dublin, CA or John Dough from Dublin, CA) on our Website. If your fact makes our website we will send you a $5.00 Starbucks gift card.

Submit your fun and interesting facts to dustin@piffinancial.com.

Here is the direct link to the "Fun Fact" section of our website... http://www.piffinancial.com/funfact.html

Please check out our website at www.piffinancial.com.

You can submit as many Fun Facts as you would like, but only 2 per household can make the site (maximum $10.00 Starbucks card per household).

Day On The Glen 2008

Pay It Forward Financial — Thu, 12 Jun 2008 17:34:00 -0500

Hey Everyone!

Dublin's annual "Day On The Glen" will be held this year on Saturday, September 20th and Sunday, September 21st. "Day On The Glen" is held at Emerald Glen Park on the corner of Tassajara Road and Gleason Drive, in Dublin. This is one of Dublin's best event's next to the "St. Patrick's Day Festival."

For Kids...

Carnival Attractions, Jumpers, & Rides!

Petting Zoo

Tot Lot Play Area

Face Painting

Balloon Animals

Roaming Entertainment

Games, Crafts and more!

For Teens...

The Skate Park will be open as well as other unannounced activities

Sports Competition...

There will be several sports competitions for all ages. The Sport activities have not yet been announced, expect Basketball, Volleyball, maybe Tennis and more.

Entertainment...

There will also be a Concert on Saturday at 7:00PM with live music and dancing.

Directions and Parking...

Emerald Glen Park is located on the corner of Tassajara Road and Gleason Drive. Go north on Tassajara from Dublin Blvd and/or the 680 FWY. The park will be on your left.

Curbside parking is available along streets adjacent to the Emerald Glen Park and in designated parking lots on Gleason Avenue and Central Parkway.

Best of all... we will be sponsoring a booth this year so stop by and say "Hello!" We will have a raffle giving away some great prizes. We will also have Balloons and Toy's for the kids.

In the mean time, check out our website at www.piffinancial.com. For more information about "Day On The Glen 2008" visit www.dayontheglen.com.

Have a great summer and see you at "Day On The Glen 2008"

Supporting Local Business's

Pay It Forward Financial — Thu, 12 Jun 2008 12:02:58 -0500

	Please click any of the pictures or logo's for direct link
	Anni Hagfeldt Alain Pinel Realtors 900 Main Street Pleasanton, CA 94566 Phone: 925-417-8627 anni@apr.com www.annihagfeldt.com

	Daniela DelValle Affinity Appraisals Serving Contra Costa & Alameda County Phone: 510-919-4707 Fax: 925-905-5233 affinityappraisal@gmail.com

	Tim Huether Huether Insurance Agency 319 Diablo Road, Ste. 100 Danville, CA 94526 Phone: 925-820-8432 Fax: 925-820-8619 tim@huetherinsurance.com

	Katie Farthing Arbonne International Phone: 925-989-2642 katie.farthing@yahoo.com www.arbonne.com Skin Care, Vitamins, Color, Weight Loss, Aromatherapy and Much More! Call Katie, let her know Pay It Forward sent you and you will receive 25% off of your order!

	Jeff Hamilton Kits 4 Disaster Survival Phone: 888-510-0678 Fax: 925-292-2739 jhamilton@ehamiltonenterprises.com www.kits4disastersurvival.com When checking out, enter coupon code "PayItForward" to receive 10% off of your order!

	Dana Marazzito Toyota 101 525 East Bayshore Road Redwood City, CA 94063 Phone: 877-203-4383 Fax: 650-364-9068 danamarazzito@toyota101.com www.toyota101.com

	Kenneth Bergquist Stoddard, Bergquist, Wood & Anderson, LLP 1470 Maria Lane, Suite 300 Walnut Creek, CA 94596 Phone: 925-938-6100 Fax: 925-938-4354 krb@wcjuris.com www.wcjuris.com

More Good News in a Crumby Market

Pay It Forward Financial — Thu, 12 Jun 2008 10:32:27 -0500

Home sales up despite predictions

06/09/2008

According to the National Association of Realtors' seasonally adjusted index, existing home sales increased from March to April by more than 6 percent. All areas of the country reported growth except for one with the Midwest leading the way increasing 13% from a month before. The Northeast declined by almost 2%. Analysts say that areas like Las Vegas are seeing more sales as supply has skyrocketed and prices have dropped.

"Bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price declines, but it's unclear if they are investors or owner-occupants," said NAR chief economist Lawrence Yun. "Sales gains will be greatest in areas that underwent sharp price declines." Yun also noted that sales need to rise before talk of a turnaround can occur and called today's announcement a step in the right direction.

At this time last year the index was 13% higher than it is now at 101%. It's peak came in April 2005 at 117%. Most analysts had predicted that the survey would show a 1% decrease in the amount of existing homes sold. The Mortgage Bankers Association recently released a study showing that more Americans are in danger of falling into foreclosure than they have been for the past 30 years.

NAR expects that a total of 5.4 million homes to be sold in 2008 with home sales and prices to rise in 2009.

Visit www.piffinancial.com/mortgagenews.php for more information.

Helpful Calculators and Booklets for Home Owners & Home Buyers

Pay It Forward Financial — Tue, 27 May 2008 16:03:56 -0500

Booklets

Calculators

For more information, give us a call at 877-771-7377 or check out our website at www.piffinancial.com.

If you are thinking about purchasing a new home or if you have any questions about refinancing the home you are living in now, give us a call, we can help!

FHA Loan Center

Pay It Forward Financial — Tue, 27 May 2008 11:10:52 -0500

FHA Loan Center

It's easy to understand why many people looking for a new home are turning to FHA insured loan programs. Because FHA Loans are insured by the Federal Housing Administration homebuyers have an easier time qualifying for a mortgage. Those who typically benefit most by an FHA loan are first-time home buyers and those who have less than perfect credit.

The links to the right are articles aimed at helping you better understand FHA loans. With this information you can make a more informed decision on whether these government insured loans are right for you and your family.

New Changes in FHA Loans

In response to the growing housing situation in the United States the loan limits for FHA Loans has been temporarily raised. Depending on where you live you might find it even easier to qualify for a FHA loan.

As FHA Loan specialists we can help you understand any new changes to the FHA loan program. We're here to create a customized solution that works best for you and your family. To learn more call us at 877-771-7377 or contact us via email by clicking here.

Quick Links

Any One Still Doing Stand Alone 2nd's

Pay It Forward Financial — Fri, 23 May 2008 11:49:22 -0500

Here's the scenario...

- SFR

- Full Doc

- Owner Occupied

- 722 FICO

- 80 CLTV behind Conforming Jumbo

- Cash Out

- Property in Dublin, CA

Here's the real catch... we are adding the borrower's son to title and putting him on the loan. Most banks require at least 6 months seasoning on title. Good news, borrower and his son both live at the subject property. All the mail goes to the subject property and both credit reports show the subject property. Any idea's. I could take it to U.S. Bank but they do not do stand alones any more and would require me to do the first through them as well. I would prefer not to do that because I have and awesome 5/1 lined up for the borrower at Direct Mortgage. U.S. Bank only has fixed products in their Conforming Jumbo, which isn't a bad thing but the 5/1 ARM rate is 1% lower.

Thanks in advance!

More Good News... Let's Be Positive!

Pay It Forward Financial — Fri, 23 May 2008 11:20:57 -0500

Mortgage rates dip for third straight week

Date: 05/22/2008

Rates on 30-year fixed mortgages fell to an average of 5.98% according to a survey released Thursday by mortgage giant Freddie Mac. The drop marks the third consecutive week in which the average mortgage rate has dropped. This same time last year the average rate for a 30-year fixed loan was 6.37%. The Federal Reserve has steadily cut key interest rates for the past year in an effort to stabilize the current housing crisis. While fixed rate mortgage rates fell the average one-year adjustable rate mortgage rose from 5.18% to 5.24%.

Freddie Mac vice president and chief economist Frank North attributed the fluctuation of interest rates "on news of both weaker industrial production in April and consumer sentiment falling in May to its lowest level since June 1980," adding "ARM rates, however, rose slightly on market forecasts that the Federal Reserve may not pursue any more rate cuts over the near term." Analysts don't expect another Federal Reserve rate change until the middle of next year.

The low mortgage rates are expected to entice more home buyers into the troubled market. However, lenders and banks continue to raise standards which could preclude many people from buying. Good credit, sizable down-payments and well documented income are the keys to acquiring a loan in the current market. The combination makes it hard to stem the rising tide of foreclosure. A measure designed to help struggling homeowners avoid defaulting on their loans has been approved by an important Senate Committee this week.

FHA Loans

Pay It Forward Financial — Fri, 23 May 2008 11:05:30 -0500

FHA Loan Center

New Changes in FHA Loans

Quick Links

Some more positive news!

Pay It Forward Financial — Wed, 21 May 2008 14:52:08 -0500

According to the California Association of Realtors 66% of Los Angeles County residents can afford to purchase an entry-level home worth almost $400,000. Just last year the same survey concluded that only 21% percent could afford to purchase an entry-level home. The trade group attributed the rise of foreclosures and distressed homeowners as the reasons for the huge difference.

The CAR's survey, the First-time Buyer Housing Affordability Index, measures the ability for residents to purchase a home at 85% of the median price for their area. Based on current interest rates and the new median home price in Southern-California those with a yearly income of almost $68,000 would find purchasing a home in the area to be affordable.

The rise in affordability is being seen across the Golden State. Leslie Appleton-Young, vice-president and chief economist for the California Association of Realtors is optimistic about a turnaround in the market. �Essentially we're working our way out of the downturn and coming back up," adding "I think they are going to make a dent in the supply. Is it going to evaporate overnight? Absolutely not. It will be a slow workout. We're still into the wave of foreclosures."

A separate survey conducted by Wells Fargo and the National Association of Home Builders indicated that home prices in Southern California have dropped by 8% compared with a year ago. However borrowers seem to be reluctant to enter the market as lenders require higher down-payments and better credit scores. Many analysts expect the housing market to continue slumping through 2008 with the possibility of a turn-around in 2009.

This news coupled with Fannie Mae lowering down payment requirements makes me feel like a turn-around is in our near future!

Which Loan Is Right For Me?

Pay It Forward Financial — Mon, 19 May 2008 14:28:05 -0500

Which loan is right for me?

Years you plan to stay in the house	Recommended program
1-3	3/1 ARM, 1 year ARM or 6 month ARM
3-5	5/1 ARM
5-7	7/1 ARM
7-10	10/1 ARM, 30 year fixed or 15 year fixed
10+	30 year fixed or 15 year fixed

Loan Programs	Advantages	Disadvantages

Fixed Rate Mortgages
30 year fixed 15 year fixed	Monthly payments are fixed over the life of the loan Interest rate does not change Protected if rates go up Can refinance if rates go down	Higher interest rate Higher mortgage payments Rate does not drop if interest rates improve

Adjustable Rate Mortgages
10/1 ARM 7/1 ARM 3/1 ARM 1 year ARM 6 month ARM 1 month ARM	Lower initial monthly payment Lower payment over a shorter period of time Rates and payments may go down if rates improve May qualify for higher loan amounts	More risk Payments may change over time Potential for high payments if rates go up

Balloon Mortgages
7 year 5 year	Lower initial monthly payment Lower payment over a shorter period of time Many balloon mortgages offer the option to convert to a new loan after the initial term.	Risk of rates being higher at the end of the initial fixed period Risk of foreclosure if you cannot make balloon payment or if you cannot refinance or if you cannot exercise the conversion option

First Time Buyer Programs
	Lower down payment Easier to qualify Sometimes you may get lower rate	May be subject to income and property value limitations Some programs which have government subsidies may have a recapture tax if you sell the house too early.

Stated Income Programs
	Don't need to verify income Faster approval	Higher rates Higher down payment

No point, No fee Programs
	No closing costs Less money required to close	Higher rates Higher payments

Imperfect Credit Programs
	Potential for reestablishing credit if you pay your mortgage on time. When used for debt consolidation, you may be able to reduce your monthly debt payment	Higher rates Terms may not be as favorable Harder to get long term fixed loans Loans may have prepayment penalties

Home Equity Line of Credit
	You only borrow what you need Pay interest only on what you borrow Flexible access to funds Interest may be tax deductible	Rates can change. The maximum interest rate is normally high. Payments can change Harder to refinance your first mortgage

Home Equity Fixed Loan
	Fixed payments Interest may be tax deductible	Higher interest rates than on 1^st mortgages Harder to refinance your first mortgage

Besides our standard loan programs, we also have a large number of unique programs to serve your needs:

Purchase a house with 0 down
Piggyback loans 80-10-10 or 80-15-5. No PMI payments even with 5% or 10% down.
Debt consolidation programs
Home Improvement loans
Qualify even if you may have been turned down before!

For more detailed information please visit www.piffinancial.com/programs.php. You will also find many helpful tools and facts at www.piffinancial.com. If you have any questions please feel free to give us a call at 877-771-7377!

Fannie Mae Lowers Down Payment Requirement to 3%

Pay It Forward Financial — Mon, 19 May 2008 14:07:57 -0500

Fannie Mae announced this week that it will lower the amount of down payment it will require for single-family conforming home loans. Starting June 1st buyers will only be required to put a 3% down payment however the home they are purchasing will need to be their primary residence.

"We've been working on ways to meet the market's need to recover," said Marianne Sullivan, Fannie Mae's senior vice president in charge of single-family credit policy and risk management. "This new down-payment policy reinforces our goal to support successful homeowning, not just homebuying, as we seek to bring liquidity to all communities and help the housing market recover."

This changes an 11-year old law that required higher down payments in markets where home prices are falling. A recent report released by Standard & Poors/Case Shiller showed that of the 20 major metropolitan markets they survey reported falling home prices. Critics of the change, the National Association of Realtors and the National Association of Home Builders have complained that it will deepen the already crippling housing market.

Fannie Mae stock has seen a 24% decline in price since the beginning of this year as a result of a $2.2 billion loss reported for the first quarter. They however recently announced they will be raising $6 billion in new capital. The U.S. Senate Banking Committee agreed yesterday to new legislation that would reform and overhaul both Fannie Mae and Freddie Mac.

Reverse Mortgages - Are they right for you?

Pay It Forward Financial — Mon, 19 May 2008 13:55:17 -0500

Many homeowners have found that a reverse mortgage is a great way for them to take advantage of the equity they have built up in their homes.

A reverse mortgage is different than a traditional mortgage. With a traditional mortgage you make monthly mortgage payments, but with a reverse mortgage the lenders pays you money through monthly installments or a one-time lump sum payment. The money that you receive is dependant on your age and the value of your home.

One of the great advantages of a reverse mortgage is that you are not required to pay the loan back until the home is no longer your primary residence For more information on when a reverse mortgage comes due click here. Another great feature of a reverse mortgage is you can never owe more than the value of your home. No matter what.

If you're aged 62 or older and own your home you might be eligible for a reverse mortgage. Contact us to find out more about reverse mortgages and ways to make it work for you, or apply now and start the process of tapping the equity in your home.

Check out these pages for more information about reverse mortgages.

Credit Tips - Improve Your Score

Pay It Forward Financial — Mon, 19 May 2008 12:42:32 -0500

Eight Quick Credit Tips
to Combat the Credit Crunch

•1. Apply for business credit cards
Most people don't realize that over 90% of business credit cards do not get reported to personal credit reports. If they are not reported, they are not scored, period. Many people run their businesses from their personal credit cards and as a result their credit score suffers. You don't need a big company to get approved for a business credit card; it is much easier to get approved than most people think. Once approved, you can move your personal credit card debt over to the business credit cards and watch your credit score go through the roof once everything is updated on the credit report.

•2. Settle for deletion, or at least zero out all unpaid collection accounts less than 24 months old.
You need to pick your battles as to which accounts you focus on during the credit crunch to assure your credit score increases is enough to get their loan approved. That is why we use our extensive credit repair software and knowledge to ensure it is done right the first time. When payment is made on a collection account that is less than 24 months old, the score will either stay about the same or increase a few points. Settling in exchange for deletion is ideal, but not always possible. Given the fact that the collection account will keep selling to other collection agencies in the future, it is best to deal with it while it is still young.

•3. Make sure you get rid of all your past due amounts on non-collection/charge-off accounts and make sure you pay before the due date until after the loan closes to be safe.
Within the delinquent accounts on your credit report, there is a column called 'Past Due'. Credit Scoring software penalizes you for keeping accounts past due, so past dues destroy a credit score.

•4. Get rid of your late payments.
Contact all creditors that report late payments on your credit and request a good faith adjustment that removes the late payments reported on your account.

•5. Ask for a credit limit increase on your credit cards and either pay-off if possible or at a minimum evenly distribute the balances you are carrying on your revolving debt.
Credit scoring software likes to see borrowers carry credit card balances as close to zero as possible and also see that they have been trusted with a lot of credit - which is why increasing your credit limits is good. If you can't afford to pay down your credit card balances, then evenly distribute your credit card balances among all of your credit cards rather than carry a large balance on one credit card.

•6. Do not close your credit cards
Closing a credit card can hurt your credit score, since doing so effects your debt to available credit ratio. For example, if you owe a total credit card debt of $10,000 and your total credit available is $20,000, you are using 50% of your total credit. If you close a credit card with a $5,000 credit limit, you will reduce your credit available to $15,000 and change your ratio to using 66% of your available credit.

•7. Keep your old credit cards active.
15% of a credit score is determined by the age of the credit file. Fair Isaac's credit scoring software assumes people who have had credit for a longer time are at less risk of defaulting on payments. Therefore, even if old credit cards have horrible interest rates, closing those cards will decrease the average length of time a client has had credit.

•8. Pay down Negative Amortization mortgage balances below the original amount borrowed to increase the score
Most people don't realize that owing more than the original amount borrowed on a loan is a negative event to the credit score.

For more information on how credit scoring works visit www.piffinancial.com/creditrepair.html or click here download a copy of our Credit Scoring Booklet.

Also please check out our website at www.piffinancial.com where you will find many tools to help you with your mortgage lending needs.

Mortgage Applications Rise For A 2nd Week!

Pay It Forward Financial — Fri, 16 May 2008 10:57:38 -0500

Positive news is always a good thing to hear with the current market conditions!

In its weekly mortgage application survey the Mortgage Bankers Association reported Wednesday that application rose for the second consecutive week. The 2.9% rise for the week ending May 9th was mostly attributed to an increase in refinance requests.

As mortgage rates fall more and more homeowners are looking to refinance their current home loans. Refinance loans have become so popular that they account for more than 48% of all mortgage applications. The average interest rate for a 30-year fixed mortgage fell from 5.91% last week to 5.82% for this week.

The MBAs weekly survey peaked for the week ending May 30th 2003 at 1,856.7 during the height of the housing boom. As the housing market continues to weaken more and more companies are feeling the strain of big losses. IndyMac Bancorp announced this week that they lost $184 million in the first quarter and are projecting sustained losses throughout the rest of this year.

Analysts expect the market conditions to worsen and possibly not rebound until sometime during 2009. Homeowners with adjustable rate mortgages are feeling the pressure along with mortgage providers. Foreclosures have reached record highs and home prices have begun a steady decline. Those looking to get into a new home will be able to find favorable conditions.

For more information and other related industry updates visit www.piffinancial.com/mortgagenews.php.