mortgage: Money for Nothing
- 09/26/18 07:52 AM
Money for Nothing
As this was written, we were mere hours from a Federal Open Market Committee (FOMC) decision wherein "the Fed" would raise short-term rates another .25%, and provide some insight into the trajectory of rates into 2019 and beyond. Barring something unpredictable on the financial markets, or barring the realization of the permabears' scattershot predictions of impending doom, most economists feel that we are going to continue down a path of higher interest rates, both at the Fed funds level and spilling over to longer-term rates like mortgages.
What is the home buyer to do?
Well first, we're going to dispel the "don't worry, … (2 comments)
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mortgage: The Running of the Credit
- 09/17/18 09:02 PM
The Running of the Credit
I have never been to Pamplona, Spain, and I've never run with the bulls, but I have known two individuals who did. One came back with some fascinating stories about the experience and the other one, tragically, did not. We're not going to dwell on either of them here, but instead discuss the fear that many have when they go to apply for a home loan. Long has the myth been propagated that simply by having a mortgage lender pull credit, a borrower will see his pristine, 800+ FICO scores trampled into the 500-range by the mere … (15 comments)
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mortgage: Lock Watch for the Week of 9/17/2018
- 09/16/18 07:55 PM
Lock Watch for the Week of 9/17/2018
Volatility-O-Meter:
I feel as though something tipped last week. No matter what the reports showed, the bond market wanted to move higher and rates increased as a result. It is unclear what will break this trend and certainly this week's news doesn't seem to have that capacity. In addition to what's below, be mindful of a new round of tariffs on China...
Economicalendar (all times are Pacific):
Mon, 9/17: Empire State Mfg Survey (5:30am).
Tues, 9/18: Housing Market Index (7am).
Weds, 9/19: Housing Starts (5:30am).
Thurs, 9/20: Jobless Claims, Philadelphia Fed Bus Outlook Survey and … (0 comments)
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mortgage: Lock Watch for the Week of 9/24/2018
- 09/16/18 07:57 AM
Lock Watch for the Week of 9/24/2018
Volatility-O-Meter:
Big week of data ahead and auctions, including a Fed decision, which will (with 95% certitude) bring us a rate hike.
Economicalendar (all times are Pacific):
Mon, 9/24: 2-Yr Note Auction (10am).
Tues, 9/25: Case Shiller Home Price Index (6am), Consumer Confidence (7am) and 5-Yr Note Auction (10am).
Weds, 9/26: New Home Sales (7am), FOMC Announcement (11am).
Thurs, 9/27: Jobless Claims, Durable Goods, Intl Trade in Goods and GDP (5:30am), Pending Home Sales (7am), 7-Yr Note Auction (10am).
Fri, 9/28: Chicago PMI (6:45am) and Consumer Sentiment (7am).
10-Year Treasury History
3.08% Today's Open
2.99% One … (2 comments)
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mortgage: Can I Get a Cosigner for a Jumbo Mortgage?
- 09/12/18 07:35 AM
Can I Get a Cosigner for a Jumbo Mortgage?
Parents have been helping their kids buy homes since, I'd guess, kids have been buying homes, but in today's lending environment, it's important that both borrowers and real estate professionals avail themselves of the most current options, advantages and guidelines. After all, knowledge is power and there are really only two main approaches, gift funds and co-signing, that come into widespread use when we talk about introducing family help into the mortgage approval process.
Gift Funds
Borrowers of all stripes use gift funds and do so far more often than the general public would estimate. But on … (12 comments)
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mortgage: Lock Watch for the Week of 9/10/2018
- 09/02/18 08:02 PM
Lock Watch for the Week of 9/10/2018
Volatility-O-Meter:
Key inflation readings on Wednesday and Thursday could make things very interesting.
Economicalendar (all times are Pacific):
Mon, 9/10: Quiet.
Tues, 9/11: JOLTS (7am), 3-Yr Note Auction (10am).
Weds, 9/12: PPI (5:30am),10-Yr Note Auction (10am), Beige Book (11am).
Thurs, 9/13: CPI and Jobless Claims (5:30am), 30-Yr Bond Auction (10am).
Fri, 9/14: Retail Sales and Import and Export Prices (5:30am), Business Inventories and Consumer Sentiment (7am).
10-Year Treasury History
2.94% Today's Open
2.90% One Week Ago
2.87% One Month Ago
2.14% One Year Ago
Corinthians 13: 4-8
This past weekend, I attended a cousin's wedding and was reminded … (0 comments)
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mortgage: Using RSU Income to Qualify for a Jumbo Mortgage
- 09/01/18 08:15 PM
Using RSU Income to Qualify for a Jumbo Mortgage
Way back in 1997, Jeff Bezos set forth his bold business plan for Amazon, with proviso #9 reading: "We will hire and retain the best people and we will not pay them with cash." Wait. What???
So I guess it's no longer any secret that many technology professionals are compensated with Restricted Stock Units, also known as “RSUs.” And here at the epicenter of the high tech world, namely the Silicon Valley and San Francisco Bay Area, we see a lot of paystubs and verification of employment forms (“VOE”) that include base pay, bonus income and … (0 comments)
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mortgage: Lock Watch for the Week of 9/3/2018
- 09/01/18 03:58 PM
Lock Watch for the Week of 9/3/2018
Volatility-O-Meter:
Short week, but some important reports throughout and an employment focus at the end.
Economicalendar (all times are Pacific):
Mon, 9/3: Markets closed.
Tues, 9/4: PMI Mfg Index (6:45am), ISM Mfg Index and Construction Spending (7am).
Weds, 9/5: International Trade (5:30am).
Thurs, 9/6: Jobless Claims and Productivity and Costs (5:30am), Factory Orders and ISM Non-Mfg Index (7am).
Fri, 9/7: Employment Situation (5:30am).
10-Year Treasury History
2.86% Friday's Close
2.84% One Week Ago
2.95% One Month Ago
2.07% One Year Ago
I Have a Dream
Tuesday of last week came and went and it … (1 comments)
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mortgage: Somebody Get Me a Doctor Loan!
- 08/27/18 09:43 PM
Somebody Get Me a Doctor Loan!
"Robert Spinosa, the doctor will see you now."
"Hello Mr. Spinosa, what brings you in today? Annual check up?"
Well, actually you, Doc. You're bringing me in today. I hear you're trying to buy a house.
"Uhhh, how did you know?"
Maybe it's the aura of the student loans that I could sense from the waiting area. We both know medical school doesn't come cheaply, right? So I just figured I'd come in for a sort of annual check-up for both of us and find out if your student loan payments have been in deferment or forbearance for a year or more?
"A … (1 comments)
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mortgage: Lock Watch for the Week of 8/27/2018
- 08/26/18 04:25 PM
Lock Watch for the Week of 8/27/2018
Volatility-O-Meter:
We're getting back to business this week with auctions, GDP and enough other reports to keep things interesting.
Economicalendar (all times are Pacific):
Mon, 8/27: 2-Yr Note Auction (10am).
Tues, 8/28: International Trade in Goods (5:30am), Cash-Shiller HPI (6am), Consumer Confidence (7am), 5-Yr Note Auction (10am).
Weds, 8/29: GDP (5:30am), 7-Yr Note Auction (10am).
Thurs, 8/30: Jobless Claims and Personal Income and Outlays (5:30am).
Fri, 8/31: Chicago PMI (6:45am) and Consumer Sentiment (7am).
10-Year Treasury History
2.84% Today's Open
2.84% One Week Ago
2.96% One Month Ago
2.16% One … (0 comments)
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mortgage: Buy Before Selling? Four Sure Four Sure!
- 08/22/18 08:08 AM
Buy Before Selling? Four Sure! Four Sure!
In strong sellers' markets, like the San Fernando Valley, the San Francisco Bay Area and many other areas across the country, making a contingent offer is a virtual impossibility. That is, when a buyer must sell his current home first in order to close on the new one, and when the purchase offer on the new home is specifically written to alert the seller that the two transactions are interdependent, it is said to be "contingent." Another, less subtle, way to describe contingent offers might be, "dead on arrival." This is because the seller knows … (30 comments)
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mortgage: Lock Watch for the Week of 8/20/2018
- 08/18/18 11:29 AM
Lock Watch for the Week of 8/20/2018
Volatility-O-Meter:
Kind of a quiet week ahead. Who's up for heading to the beach one last time?
Economicalendar (all times are Pacific):
Mon, 8/20: Quiet.
Tues, 8/21: Quiet.
Weds, 8/22: Existing Home Sales (7am) and FOMC (11am).
Thurs, 8/23: Jobless Claims (5:30am) and New Home Sales (7am).
Fri, 8/24: Durable Goods (5:30am).
10-Year Treasury History
2.84% Today's Open
2.88% One Week Ago
2.89% One Month Ago
2.18% One Year Ago
Randy Rhoads
Randy Rhoads was born into a musical family in 1956 and taught himself to play guitar at his mother's San Fernando … (1 comments)
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mortgage: Poor Richard, the First Time Home Buyer
- 08/15/18 07:27 AM
Poor Richard, the First Time Home Buyer
If I've learned anything in the current political environment it's that you can't make people see things they choose not to look for. But what about the opposite? What happens when the truth is hard to find? Or, better still, what if the question at hand involves a bit of both? That is, what if people don't have the inclination to look for something that is a bit difficult to locate? With the help of one of our Founding Fathers, we're going to dispense some wisdom and address this dilemma in the context of a first time … (3 comments)
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mortgage: Lock Watch for the Week of 8/13/2018
- 08/11/18 05:40 PM
Lock Watch for the Week of 8/13/2018
Volatility-O-Meter:
More dog days but the situation in Turkey could get interesting and it's worth keeping an eye on. If Friday's trend continues, stocks would suffer and the US bond market would benefit. This assumes rationality.
Economicalendar (all times are Pacific):
Mon, 8/13: Quiet.
Tues, 8/14: Import/export prices (5:30am).
Weds, 8/15: Retail Sales and Empire State Mfg Survey (5:30am) and Industrial Production (6:15am).
Thurs, 8/16: Jobless Claims, Housing Starts and Philly Fed Business Outlook Survey (5:30am).
Fri, 8/17: Consumer Sentiment (7am).
10-Year Treasury History
2.88% Today's Open
2.98% One Week … (0 comments)
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mortgage: Mortgage 911: A Financial First Responder Takes You on Call
- 08/07/18 07:31 AM
Mortgage 911: A Financial First Responder Takes You on Call
It must have been around 6:30pm when the call crackled in. By the tone of the voice on the other end of the line I could tell "the crash" had happened some time prior, but now panic and shock had officially set in and the victim/borrower was not able to speak any longer. From the scene, the Good Samaritan/Realtor dialed the equivalent of Mortgage 911. The breath on the other end of the line was heavy and rushed.
Realtor John: "Rob, we haven't worked together before but you were referred by my broker...I just had … (14 comments)
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mortgage: Lock Watch for the Week of 8/6/2018
- 08/04/18 01:16 PM
Lock Watch for the Week of 8/6/2018
Volatility-O-Meter:
Dog days of summer...aside from auctions mid-week and inflation readings at the end.
Economicalendar (all times are Pacific):
Mon, 8/6: Quiet.
Tues, 8/7: JOLTS (7am) and 3-Yr Note Auction (10am).
Weds, 8/8: 10-Yr Note Auction (10am).
Thurs, 8/9: Jobless Claims and PPI (5:30am). 30-Yr Bond Auction (10am).
Fri, 8/10: CPI (5:30am).
10-Year Treasury History
2.93% Today's Open
2.98% One Week Ago
2.82% One Month Ago
2.26% One Year Ago
The Far Side
On a whim, and to the creator's surprise, the San Francisco Chronicle picked up and syndicated a little-known cartoon called Nature's Way and began running … (0 comments)
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mortgage: Lock Watch for the Week of 7/30/2018
- 07/29/18 09:36 PM
Lock Watch for the Week of 7/30/2018
Volatility-O-Meter:
Things could get interesting with the Fed meeting, though no rate hike is expected. Chase that with the jobs numbers on Friday --- likely a very active week.
Economicalendar (all times are Pacific):
Mon, 7/30: Pending Home Sales (7am).
Tues, 7/31: Chicago PMI (6:45am) and Consumer Confidence (10am).
Weds, 8/1: ADP Employment (5:15am), ISM Manufacturing Index (7am) and FOMC Meeting (11am).
Thurs, 8/2: Jobless Claims (5:30am) and Factory Orders (10am).
Fri, 8/3: Employment Situation (5:30am) and ISM Non-Mfg Index (7am).
10-Year Treasury History
2.98% Today's Open
2.92% One Week Ago
2.85% One Month Ago
2.30% … (2 comments)
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mortgage: Three Ways to Get a Great Jumbo Loan for Under $20
- 07/28/18 02:48 PM
Three Ways to Get a Great Jumbo Loan for Under $20
I think I've made it clear before that I find no shame in talking about how hard we work for our clients. My assistant, Debbie, and I see a good number of mortgage applications come across our desks every week and in 2018, 60% of them have been for jumbo home loans, which means that our borrowers must demonstrate strong credit depth by way of an adequate number of tradelines on their credit report. Gone are the days when one could just have a decent FICO score in order to cross … (3 comments)
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mortgage: Lock Watch for the Week of 7/23/2018
- 07/22/18 12:55 PM
Lock Watch for the Week of 7/23/2018
Volatility-O-Meter:
GDP at the end of the week and auctions in the middle, but let's not discount the significance of what happened with comments from the President regarding the Fed. Bloomberg chimes in on it HERE. Could this be our next real rate driver?
Economicalendar (all times are Pacific):
Mon, 7/23: Existing Home Sales (7am).
Tues, 7/24: PMI Composite Flash (6:45am) and 2-Year Note auction (10am).
Weds, 7/25: New Home Sales (7am) and 5-Year Note auction (10am).
Thurs, 7/26: Durable Goods, International Trade in Goods and Jobless Claims (5:30am) and 7-Year Note auction (10am).
Fri, … (0 comments)
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mortgage: No Tax Returns, No Cry
- 07/22/18 12:20 PM
No Tax Returns, No Cry
While it never rivaled in popularity its sister reggae tune of genre-defining, historic significance, let's dust off this platter and give it a spin. Because let's face it, in the fully-documented world of today's mortgage qualifications it would seem that if you're self-employed, or if you're a real estate agent who gets a 1099, you pretty much have to shoot the sheriff if you want to get a decent loan but don't have two, strong years of tax returns. No more.
Our bank statement program may allow you to qualify with just 12 months of business bank statements. … (6 comments)
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Money for Nothing
;)
;)
;)
