Ed Bisquera - Vancouver WA blog on real estate, mortgage, social media marketing

Pending existing home sales rose in US 6.1% Sep - Mortgage rates nearly unchaged from Friday 30 yr at 4.75% (5.1 APR) no pts

Ed Bisquera | Loan Network 360-597-8283 — Mon, 02 Nov 2009 12:30:21 -0600

Pending Sales of Existing Homes in U.S. Rose 6.1% in September
2009-11-02 15:00:00.4 GMT Bob Willis

Nov. 2 (Bloomberg) -- The number of contracts to buy previously owned homes in the U.S. rose in September for an eighth straight month as Americans rushed to meet a deadline for a home-buyer tax credit.
The index of signed purchase agreements, or pending home sales, rose 6.1 percent after a 6.4 percent gain in August, the National Association of Realtors announced in Washington.
Compared with a year earlier, pending sales rose 19.8 percent, without adjusting for seasonal variations.
Many buyers accelerated purchases of new homes to take advantage of the $8,000 tax credit before it expires Nov. 30.

Foreclosure-driven price declines and low mortgage rates have also pushed sales up this year. Home sales may cool in coming months unless the credit is extended under a deal worked out by Senate Democrats.
“Home sales continued to show improvement as we see people rush to take advantage of the homebuyer tax credit, although the sustainability of this move is in doubt, and we expect a far slower growth rate going forward,” David Semmens, an economist at Standard Chartered Bank in New York, said before the report.
Pending home sales were projected to be unchanged in September from the prior month, according to the median forecast of 33 economists in a Bloomberg News survey. Estimates ranged from a drop of 2.5 percent to an increase of 5.5 percent. The Realtors group has collected pending sales data since January 2001, and it started publishing the index in March 2005.

Leading Indicator
Pending home sales are considered a leading indicator because they track contract signings. The Realtors’ existing- home sales report tallies closings, which typically occur a month or two later.
Sales rose in three of four regions from the prior month.
They increased 10.2 percent in the West, 8.1 percent in the Midwest and 4.9 percent in the South. Sales fell 2 percent in the Northeast.

“As long as buyers do not overstretch and stay well within their budget, a sizeable pent up demand can be tapped among financially qualified potential buyers,” NAR Chief Economist Lawrence Yun said in a statement. Still, “We’re clearly not out of the woods because an excess of homes remains on the market.”
Sales of existing homes surged a record 9.4 percent in September to a 5.57 million annual rate, a report last month showed. The median price fell at the slowest pace in a year as the number of houses on the market shrank.

Federal Reserve
The Federal Reserve has announced it will phase out its purchases of $1.25 trillion in mortgage-backed securities by March, signaling borrowing costs for home buyers may rise after the average rate on a 30-year mortgage fell to a record 4.78 percent in April.
Housing-related companies are still recovering from the industry’s worst slump since the Great Depression. USG Corp., North America’s largest maker of gypsum wallboard, posted its eighth straight net loss last quarter as sales dropped 32 percent from the same time last year.
“We’re expecting we’ve hit the bottom in housing,” Chief Executive Officer William Foote said Oct. 21 on a conference call with analysts. He added it would take time for any sustained improvement to “really kick in.”

MORTGAGE RATES NEARLY UNCHANGED FROM FRIDAY

Most rate prices are near unchanged this morning as mortgage bonds start out losing ground, then improve, then fall back a bit after the release of better than expected data. Treasuries are taking a hit while stocks strengthen in yet another reversal. This back and forth movement is a telling sign of the reality of increased volatility as market participants debate the shape and form and timing of recovery, and the impacts of anticipated decreased Fed intervention. Busy news week culminating in the employment report on Friday. This week is likely to be choppy ahead of this heavily weighted data. Be careful and if you have your full documentation and package to your lender, you should lock ahead of any weighty news. Not sure? Contact your lender (or me) and get that package in, if you want to refinance at rates still near or below 5%. It's may be a roller coaster ride for rates, so being prepared to lock is better than trying to do so without your full loan document package in to your lender. Be prepared!

In the news today - Market Headlines for November 2, 2009

Trading on the market remains unchanged for mortgage backed securities, but that could change at midday repricing. Be prepared to lock against choppy news this week.

Data released today for:
Pending Home Sales Month over Month SEP 0.00% change
Pending Home Sales Year over Year
Construction Spending Month over Month - SEP -0.20% change

U.S. September Construction Spending Report
2009-11-02 15:00:01.740 GMT By Alex Tanzi
Nov. 2 (Bloomberg) -- The following is the text of the September construction spending report from the U.S. Commerce Department.

SEPTEMBER 2009 CONSTRUCTION AT $940.3 BILLION ANNUAL RATE
The U.S. Census Bureau of the Department of Commerce announced today that construction spending during September 2009 was estimated at a seasonally adjusted annual rate of $940.3 billion, 0.8 percent (1.8%)* above the revised August estimate of $933.0 billion. The September figure is 13.0 percent (1.9%) below the September 2008 estimate of $1,081.2 billion.
During the first 9 months of this year, construction spending amounted to $715.2 billion, 12.1 percent (1.3%) below the $813.3 billion for the same period in 2008.

PRIVATE CONSTRUCTION
Spending on private construction was at a seasonally adjusted annual rate of $613.9 billion, 0.5 percent (1.1%)* above the revised August estimate of $610.9 billion. Residential construction was at a seasonally adjusted annual rate of $256.0 billion in September, 3.9 percent (1.3%) above the revised August estimate of $246.4 billion. Nonresidential construction was at a seasonally adjusted annual rate of $357.9 billion in September, 1.8 percent (1.1%) below the revised August estimate of $364.5 billion.

PUBLIC CONSTRUCTION
In September, the estimated seasonally adjusted annual rate of public construction spending was $326.4 billion, 1.3 percent (2.9%)* above the revised August estimate of $322.1 billion.
Educational construction was at a seasonally adjusted annual rate of $88.7 billion, 0.1 percent (3.4%)* below the revised August estimate of $88.8 billion. Highway construction was at a seasonally adjusted annual rate of $85.5 billion, 1.0 percent (7.8%)* above the revised August estimate of $84.6 billion.

Tomorrow news:
Factory Orders for Sep
ABC Consumer Confidence
Total Vehicle Sales
Domestic Vehicle Sales

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

Powerful Tweeting Techniques To Drive Traffic To Your Blog

Ed Bisquera | Loan Network 360-597-8283 — Mon, 06 Jul 2009 11:40:16 -0500

Image by magia3e via Flickr

I found this a great start to giving ideas on how to use Twitter to drive traffic to your blog or website. What's best about using Twitter, is that it can gain some speedy viral sharing, via retweeting and reposting. I've used Twitter for just a short time and found that I've already seen an increase in my traffic to my blog posts. There has been increase when used with video as well and I'll be posting my daily video blog here shortly. Some of the first 5 tips are:

Communicate a benefit

Blogs have been associated for a long time now with opinion and personal experience. This is often times the way they are portrayed in the main stream media. This may be due, in part, to the desire on some level to frame blogs as a less authoritative resource.

Make claims and promises

A claim or promise is certainly attractive, but because you are working in social media you must always maintain your trust asset. This, along with your content, is a major component to your traffic engine. This means that whatever your claims are, they should be backed up by content or services that meet those statements. Not doing so eats into your trust asset while doing so contributes to it. Halfway meeting it may maintain your status on this level but it also provides opportunities for competitors to surpass you with superior quality. You are better off being comprehensive and in so doing providing a disincentive for other to try and emulate you. What is more likely in this case is for someone to link to you and add their own commentary or insight on top of yours. What this does is embed you in the community as a person that consistently contributes. From there, you can develop the authority to a) sucessfully recommend affiliate products and services or b) market your own.

Personalize

- Rather than speaking in the general sense as in ‘drive more traffic to a blog’, it is better to phrase it: ‘Drive more traffic to your blog’ This is because many people in smaller niches may be of the opinion that a generalized approach is suitable only for sites with a given minimum traffic requirement. By making things more personal, a reader will start to visualize the proposition as applying to him or her.

Use Keywords

- This aids in being found because each keyword can help your tweet be found via different seach criteria. Many of these words work well together and may be searched as a pair, which will push you further up in the search result. Twitter search is used by many to find information but at the same time it does not have the same volume as Google. What this means is that you are competing with fewer people for top ranking. While this might mean a smaller base of users, it also means a more enthusiastic person because they are using a wider variety of tools to find what they want.

Ask a question

- A question can be one that searches for an answer but what tends to be more effective are questions that pose a controversy or are rhetorical. That latter is particularly effective because it states both the content being delivered as well as the fact that you have a possible solution for them.

Go to my original blog post to click on the link to the rest of the tips: Powerful Tweeting Techniques To Drive Traffic To Your Blog

===
Follow me on:
Twitter
Facebook
Activerain Blog
LinkedIn
YouTube Video Posts

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

"What's the FOUR Letter Word Asked Most About Social Media?" Video

Ed Bisquera | Loan Network 360-597-8283 — Thu, 02 Jul 2009 18:39:28 -0500

What is the FOUR Letter Word Asked About Most Frequently Regarding Social Media, at Social Media Marketing Seminars and Classes throughout the United States? (As originally posted on my blog at blog.pdxloan.com)

It's all revealed at the 1:45 mark in this video blog post by Ed Bisquera, Mortgage Matchmaker & Social Media Guy.

Quote of the day: Insincerity is always weakness; sincerity even in error is strength. ~George Henry Lewes

• Today's Mortgage Rates Watch & Real Estate/Mortgage News

Rates look like they are sitting fairly stable at the 5.375-5.625% range (5.77%-5.99% APR) on a Conventional 30 YR Fixed Loan, NO pts, 20% down (80% Loan To Value), Owner Occupied, with 740 or higher FICO credit score. Forecasts are predicting a small increase in rate, due to typical activity as 2nd quarter earnings are taken to offset any capital gains.

UPCOMING EVENT

"Getting Connected through Social Media" Class for
Real Estate Professionals, 3 CE Clock hours

Date: Thursday, July 23, 2009

Time: 1 -4 PM

Location: Keller Williams, Downtown Office

915 Broadway Ste 100, Vancouver, WA 98660

== Cost: $27 Early Bird special before Midnight, July 21, 2009 ==

Learn how getting connected and participating in the conversation online where your clients, prospects and audience is, using Social Media tools, is important to your Real Estate business. Produced by Natalie Danielson of Professional Directions/Clockhours.com and taught by Ed Bisquera and Natalie Danielson.

Details at the event signup page here:

Getting Connected through Social Media Class for Realtors.

READ THE REST OF MY VIDEO BLOG POST HERE

What is the FOUR Letter Word Asked About Most Frequently Regarding Social Media, at Social Media Marketing Seminars and Classes throughout the United States? By Ed Bisquera, Mortgage Broker in Vancouver, Washington and Social Media Instructor.

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

Facebook announces Unique Vanity URL's for users

Ed Bisquera | Loan Network 360-597-8283 — Wed, 10 Jun 2009 10:57:24 -0500

I came across a post recently about the fact that Facebook will be offering Vanity Facebook URL's, starting this Friday, June 12th at 9 pm for registration. You can read more at the Facebook blog and you'll want to bookmark the registration page, to secure your vanity ID right away. Here's the short of it:

You're able to create a Vanity URL like http://www.facebook.com/edbisquera (no, it's not registered yet, but you can bet your bottom dollar I'll be registering it on Friday at 9:01 PM!) and you can do the same for Facebook business pages as well. So make sure and mark on your calendar to be there to register. But don't worry, there are some ways to protect your unique URL. Check the blog post at Facebook for more information.

Now that we're really seeing a move to utilize Social Media Marketing and using sites like Facebook to connect with others, it's imperative we use these tools to market ourselves easily and Facebook is now making it easier to remember our personal profile page as a unique URL or market our fan/business pages unique URL as well.

I'm sure it would be prudent to snap up say http://www.facebook.com/kellerwilliamsrealty or http://www.facebook.com/remax but according to the blog, there will be some security measures in place to prevent "squatting" of unique ID's and will only allow ONE unique URL per registered Facebook user, registered BEFORE May 31, 2009.

So if you think you're going to try and snag some unique brand or your company name, Facebook has in place to only allow it to the official "owner." But that won't stop or prevent you from thinking hyperlocal when naming your unique Facebook Vanity URL.

You could name it http://www.facebook.com/kellerwilliamsvancouver or http://www.facebook.com/VancouverWAREMax or something that identifies you in your local or regional market. (And no, these links aren't real; yet!) I'm sure my colleagues in my area will be quick to snap up their respective hyperlocal company names soon enough. Just think creatively and you'll also want to come up with something that matches any existing marketing or branding you are already using. **One thing to note, however, is that Facebook says "once you decide on your unique Vanity URL ID, you will not be able to change it or transfer it." I'm sure that will cause some problems, as you may change companies in the future or you'd like to transfer to someone else, but maybe they'll have a better or different way of dealing with that in the future. :-)

In my opinion, this is great for all Facebook users, but I think best for anyone marketing in the Real Estate and Mortgage industry. Now we'll have a unique URL for our Facebook pages and personal profiles, which will just add another line to add to our business cards! LOL

And with a unique Facebook URL, maybe it will make adding friends a whole lot easier. :-)

or Friend/Fan me on Facebook

FACEBOOK - Ed Bisquera

Click to Subscribe to my blog

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

The sun is out and so are the buyers- have we hit the bottom?

Ed Bisquera | Loan Network 360-597-8283 — Tue, 12 May 2009 06:59:20 -0500

As a Mortgage Consultant with Bill, I have to reiterate that finding and working with a KNOWLEDGEABLE mortgage professional is key to seeing a CLOSED deal, where everyone wins, homebuyer gets into home and we all happily cash our paychecks! :-)

The fallout below is one of 3 that came from one of my Realtor referral partners and she was not very happy to hear the other lender gave pre-approval based upon guidelines over 6 months old! They should have known the changes to Fannie Mae, Freddie Mac and FHA guidelines and telling the Realtors and buyers involved that this was a "NEW" guideline change from the lender is BS! Simply put, mis-guided information, led to wasting 60 days of time of the buyers (the sellers too, since they were waiting to sell the home to buy another) and the Realtors involved. No one got paid on the deal, since it was a failed sale, and the sellers are now not able to move forward to buy a home. Not knowing HUD, Fannie Mae, Freddie Mac and lender guidelines cost everyone precious time and the ability to get paid.

Here's what I wrote the reputable Realtor in an email:

Based upon conversation with buyers and Realtor, the lender provided a pre-approval based upon ability to borrow and based upon the changes in holding a home while using FHA to buy another home. In order to buy a home using conventional or FHA loan financing AND the homeowner owns a home they will end up keeping to "rent" or "lease" out, they need 6 months reserves for the original home PLUS they must have 25% equity FHA (30% conventional) in existing property OR MORE, or the rent/lease payments cannot be counted toward debt to income ratio AND minimum of 3 months reserves on the new purchase. 6 months minimum of canceled checks may suffice for lack in equity, but may be at lenders' overlay of guidelines.

In essence 9 months minimum in reserves and 25% equity in current home they are planning to rent out or rent can't be used for income qualifying. That may make it difficult to buy in many situations, for those holding onto current property.

That change was introduced to loan professionals through a Mortgagee letter from HUD back in Sept of 2008 and instituted in March of 2009. We KNEW it was coming. The lender for buyers should've known that, prior to any pre-approval offer 45-60 days ago.

In slight defense of the lender, they MAY NOT have gotten the true picture from the buyers (sometimes they overlook

things to tell the lender) but it still rests on the lender's shoulders to fully investigate, ask every question possible to deal with the myriad issues and scenarios that might come up, PRIOR to pre-approval. A competent mortgage professional would do that, my friend. Sorry to hear another failed sale. Perhaps future buyers should attend our home buying seminars to insure a positive loan approval?? :-)

=== end of email ===

So the scenario Bill spoke of, was one of mine that came through our office (yes, I'm a mortgage consultant under Bill, who is the Broker of record :-) and we realized that many Realtors and Loan Officers are still operating on old, mis-guided information regarding lending guidelines as it stands today.

It's not what it used to be and after May 1, 2009, lending guidelines are facing more changes and challenges. YOU must stay up-to-date with knowledgeable professionals and we are confident we are some of those few.

As Bill stated, we are at 72 hours in underwriting (FOR A COMPLETELY PACKAGE, READY-TO-GO SUBMISSION PACKAGE) and 48 hours to docs and 24 hours to fund.

We KNOW what we're doing, have read EVERY updated HUD, FHA, Fannie Mae, Freddie Mac guideline change current as of today's date and we don't offer/give pre-approval to buyers, unless we're 99% positive it will be underwritten.

Don't get your pre-approval from just any old mortgage person. They may not have the motivation to stay educated in the field as a Mortgage Broker/Certified Mortgage Planning Specialist will. We take the time to work with experienced, professional Realtors and take the time to educate, engage and share with our partners and our clients.

You can follow me on Twitter @edbisquera to stay up to date on mortgage trends and cutting edge internet/social media networking technologies.

Ed Bisquera

(360) 597-8283

Via America One Finance :

We are seeing some great times compared to the rough last 12 months that we experienced. Buyers are coming out of the woodwork. Multiple offers are coming in and those Realtors that have learned their lesson in the past are convincing thier listing clients it is in their best interest to include the buyer to be pre-approved with a neutral lender in order to make sure the buyers will close the transaction once it's time to close.

I was really surprised to hear of a fallout last week because a lender was not aware of an "old" guideline- ok a few months old but in this changing market a few months is old news.

Seems like a few lenders out their are still not up on the Fannie Mae, Freddie Mac and FHA guidelines:

Equity Requirement in Existing home:

For the lender to use rental income against the existing property then Conventional requires 30% equity in the existing home and strong cash reserves. FHA requires 25% equity in the home. If you are turning your current property in to a rental but only have 25% equity in the home then you should be thinking about FHA financing for the new property.

Most importantly, if you are hot on renting out your current property so you can purchase 'non contingent', check first with the new lender for equity requirements. These requirements are new and can throw a hitch in someone's plan to purchase non contingent.

As the buyers come ouot its never been more important to team up with a good lender that can basically underwrite in the field. They do not need to submit an application and wait weeks to only be declined. The market will be in the typical spring time frenzy and the faster you and your affiliate team can close on the deals the faster you are able to move onto the next buyer.

We are currently at 72 hours in underwriting and 48 hours to get docs to title and 24 hours to fund! All purchases are priority over refinances and we offer ALL loan programs avaialble with over 130 lenders on line.

Give us a shot- we aim to please.

Bill Black CMP

America One Finance

360-326-8891

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

"Number of Fed-backed (FHA) troubled mortgages rises" BUT road is paved with yellow bricks...

Ed Bisquera | Loan Network 360-597-8283 — Thu, 02 Apr 2009 11:55:30 -0500

Yes, the Wizard is in town and is able to grant the ability to buy a home in today's market. Will you be the one to click your heels and utter "There's no place like home??"

While the below post from the LA Times indicates FHA troubled mortgages are on the rise, the fact remains that it's still going down in history as possibly one of THE BEST TIMES to be a first time homebuyer. The cost of housing is depressed, likely to bottom out in the 3rd quarter and that simply means a first time homebuyer will be able to buy more house for less money and on their current income level.

I think we should focus on the fact that with several incentives in place, and lower than 5% interest rates, will really spark a movement for first time homebuyers to come out of the woodwork and start a trend in buying in coming months. One large trend is found in single women are buying homes in record numbers, according to a recent report from the National Association of Realtors. Seems like there are many "Dorothy's" realize there's no place like home (ownerhsip). :-)

The incentive to buy is further supported by the $8000 Tax Credit that is available to all first time homebuyers (definition: haven't owned a home in the last 3 years) that doesn't have to be paid back and is good for anyone buying between January 1, 2009 and December 1, 2009.

In addition, Fannie Mae's Homepath program (stay tuned for a video on this gem of a program) allows anyone to buy a Fannie Mae-owned home (home that has been foreclosed upon and returned back) with as little as 3% down, no Mortgage Insurance required and NO APPRAISAL REQUIRED as well. This program allows for up to 6% seller concessions on primary, owner occupied purchases.

This program is also WONDERFUL FOR REAL ESTATE INVESTORS: an investor can buy a Homepath home for as low as 10% down, allows 2% seller concessions, Requires NO MORTGAGE INSURANCE and again NO APPRAISAL. My broker I partner with at the mortgage company has just saved 2 deals alone in the last 3 days because of this program and put another single woman into a house, when the deal was previously thought dead. How's that for the mortgage wizard granting her wish?

If you have any questions, please as always, feel free to contact me on my cell (360) 597-8283, Twitter, or send me a message through here.

Best wishes today!

Ed Bisquera "The Mortgage Matchmaker" & Web 2.0 Evangelist :-)

P.S. I just posted 12 listings on Craigslist this week and using tried and true techniques and existing programs marketed with a twist. I was able to get 3 buyer leads in less than 24 hours, and convert one into a buyer with an 4.375% (4.6% APR) FHA mortgage to this first time homebuyer. Message me and I'll tell Realtors and homebuyers how this works IN ANY AREA OF THE COUNTRY. Ed B

== Number of Fed-backed troubled mortgages rises ==

The mortgage woes of FHA borrowers are gaining ground. From an Associated Press brief at latimes.com:

The government says the number of troubled loans backed by the federal mortgage insurance program is on the rise as economic troubles mount.

However, Housing and Urban Development Secretary Shaun Donovan is telling Senate lawmakers Thursday that the Federal Housing Administration is "unlikely to face the catastrophic losses borne in the subprime sector." He says in prepared remarks that that is partly because it didn't back loans for more expensive properties that have plummeted in value.

As of February, 7.2 percent of loans backed by the FHA were either 90 days overdue or in foreclosure, up from 5.8 percent last August.

The FHA is the main source of home loans to borrowers with poor credit and low down payments after the subprime lending market's collapse.

I'd be curious to know what percentage will qualify as a "catastrophic." The trend line sure doesn't look good.

-- Lauren Beale

Thoughts? Comments?

Photo: Housing Secretary Shaun Donovan, left, Treasury Secretary Timothy F. Geithner and FDIC Chairwoman Sheila Bair gather at Dobson High School in Mesa, Ariz., for President Obama's recent unveiling of his plan for preventing home foreclosures. Credit: Gerald Herbert / Associated Press

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

Changing Face of FHA Streamline Refinance - What is Needed to Qualify?

Ed Bisquera | Loan Network 360-597-8283 — Thu, 26 Mar 2009 16:29:29 -0500

This is a great explanation of the qualifications on an FHA Streamline Refinance.

Ken Cook explains it well and I'm glad to repost this blog post of his.

Any questions on FHA Streamline Refinancing in the Pacific Northwest feel free to call me at (360) 597-8283.

Via Novation Mortgage:

Once upon a time in a land where gas was 75 cents a gallon and bread was 33 cents a loaf interest rates were in the high teens. Of course I'm writing of the 1980's when our economic situation was not too unlike the one we have today although there were vast differences. Yet during this time and shortly thereafter the FHA streamline refinance was born with one purpose in mind: Get FHA borrower into a lower rate and lower their monthly cost of home ownership.

It was much simpler back then to see the savings. Many families came in to refinance from interest rates as high as 15% or 16% down into rates like 9% or 8.5% - that was then - this is now. Families today are scurrying to refinance from 6.25% to 5% and I can't say I blame most of them. After all on a $250,000 loan we're talking about a couple of hundred dollars a month in savings on interest alone.

First let's dispell a couple of myths about the FHA streamline refinance program. Most importantly the FHA streamline is not a "no closing cost" refinance. There are closing costs and they can be paid one of three ways:

The borrower (home owner) can pay them out of pocket
The lender can pay part or all of them with an interest rate higher than par
They can be rolled into the refinance loan amount

However you choose to pay them, paid they must be. The attorney will not work for free. The underwriter will not work for free. The processor and loan officer will not work for free. Now I know there are a couple of very large banks/lenders telling people they are offering no cost loans. No, the are not. The home owner is paying the closing costs one of those three way. If you are dealing with a mortgage broker instead of a direct lender they are require by Federal law to show you how their commission is applied in the closing costs. Banks and direct lenders are exempt from it but it's still there - nobody does loans for free except maybe a very miniscule number of tru non-profits which I have not lately seen.

Qualifications for an FHA streamline refinance vary from lender to lender. Oh I know you thought HUD made the rules. In a way they do make the rules but those are the base line rules. In other words FHA will not insure a loan that does not conform to their qualifications. The lenders (who actually write the check for the loan) have what are called "lender overlays" to make sure their investors are satisfied with the quality of borrowers getting the funds. In other words if you're a deadbeat you ain't getting no money. (Ain't is Greek for "are not", "can not" or "is not".)

Most lenders today are requiring a minimum middle credit score of 620 or higher even to qualify for a streamline refinance. Fortunately we can still get FHA streamline refinances closed with:

No credit examination (all we may need is a mortgage payoff statement - we order it)
No verification of income (employment is required to be verified)
No verification of assets (no bank statements or tax returns)
No appraisal of value (this applies in almost every instance but check with your FHA professional)

Keep in mind the above applies in most cases when I am doing the loan but you really need to check with your loan officer (not all of them are qualified to handle FHA streamline refinances so I can give you names if you're not in Georgia or Florida or the southeast).

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

Rates Are Down -but- Does CNN Offer Mortgages?

Ed Bisquera | Loan Network 360-597-8283 — Fri, 20 Mar 2009 10:56:54 -0500

CNN (NBC, CBS, ABC, you fill in the blank for idiot networks PRETENDING to be the deliverer of accurate housing and financing news) DOES NOT OFFER MORTGAGES NOR DO THEY HAVE A CLUE!

My fellow colleague, Ken Cook of Atlanta, Georgia has a post I find very revealing and explains what the media knows and what they CLEARLY DON'T HAVE A CLUE ABOUT. The MEDIA is causing consumers to think rates can be changed by one entity or by the mere mention of lowering rates on their network.

Read this great blog post and you'll see why there's danger in getting your financial and mortgage advice by a pretty face on TV telling you that rates are heading down into the Four's, WHEN THEY CLEARLY HAVE NO IDEA WHAT CAUSES RATES TO LOWER.

Do you agree with this post? Am I unfairly attacking the media? Do you really believe EVERYTHING you hear/read in the media? ;-)

Via Ken Cook - Lender - Investor Specialist:

As a mortgage banker I have the distinct privilege of being simultaneously a genius and an idiot. The viewpoint is reached as a matter of perspective and today I get to be an idiot because I have to, once again, undo what the news networks have done. This means I am spending extra time (15 minutes or so) with all of my customers and educate them in what most of the media needs an education. You see it's all over the news today that rates are headed to the fours. Orly?

First let me say I agree that rates are down and may stay down for a week or more. The danger of reporters (here I go again) putting forth information that "rates are headed down into the fours" is that they have no idea what would cause this or even if it is a fact. Having attended a University where many journalism majors have gone on to great things and having known some of them in school I still have to wonder if they are as ditsy today as they were 30 years ago. This is not intended to disrespect all journalists just most of them - BECAUSE they terribly muddy the waters on highly important issues by delivering information they do not understand to the masses who also do not understand.

Next let me add rates are driven by the market - the government does not (yet) mandate rates. Once we become fully socialist then the government can set rates but we are not quite there ... yet. If Mortgage Backed Securities are not producing a profit for investors rates are up - if those same securities are producing a profit for investors rates are down.

Rates are still based on risk. Riskier loans still have higher rates. FHA rates are not the same as straight Fannie rates. Rates in Florida are not the same as rates in Georgia. Rates on a $60,000 loan are not the same as rates on a $180,000 loan. Rates on a loan with 20% down are not the same as rates on a loan with 10% down. Rates with a 680 credit score are not the same as rates with a 755 score. Some investors (Fannie, Freddie, Ginnie) offer programs at Fixed 30 terms that others do not offer. It's not as simple as saying, "the mortgage rate today is 5% and tomorrow will be 4%".

The biggest lie the mortgage industry has ever told you is "Today's Fixed 30 Rate Is ..." and the second biggest lie they have ever told you is "No closing costs ..."

One thing you could see happen over the next few weeks to help keep rates down is based on the very basic economic principal of supply and demand. It is possible that so many people will be buying and refinancing over the next few weeks that rates will need to adjust to help keep the supply of money in check with the demand. This is where the rubber really meets the road and we get to see how many deep pocket investors step to the plate. I don't know the answer, CNN doesn't know the answer and the mighty supreme Congress does not know the answer (they don't seem to know the answer to many questions).

Yes, rates are down. Your local mortgage broker (the one within driving distance from your home so you can throttle them when they mislead you) is required by Federal Law to show you ALL of their income. The lender 3 states away is NOT required to show you all of their income. With a local broker from your area you should easily be able to get the best rates and best closing costs and if you can't that's simply because you don't know how to shop for a mortgage and are continually misled by the media.

I can fix you. If you are in Georgia or Florida visit my work blog and subscribe for almost daily updates.

EDITED: Only five hours after posting this the rates did a U-turn and headed back up. What say ye media geniuses now, eh?

==

Want to learn how to maximize your online outreach for free ... every week?
Listen live to Twitter Tuesday Radio on JCKC with Jason Crouch and me at NOON Eastern on Tuesdays.

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

97% Financing~ Fannie Mae Owned ~ No MI ~ No Appraisal~ Investors too!

Ed Bisquera | Loan Network 360-597-8283 — Fri, 13 Mar 2009 15:55:00 -0500

This program is an unsung product right now, given that it's really only a couple of months old at most. But getting this information into the right hands will allow us to become better at providing real world, real solutions to helping homebuyers take advantage of historic pricing and low rates.

I know it was briefly touched upon, but getting an up to $8000 tax credit for first time homebuyers (those that haven't owned a home in the past 3 years) is another reason that the it's time to "strike when the iron's hot!"

We have until December 1st, 2009 for those first time homebuyers to take advantage of the $8000 refundable tax credit THAT THEY WON'T HAVE TO PAY BACK!

Fannie Mae Homepath looks to bring home ownership to more people. There are many homes to look at; simply read below to see what properties are available.

Thanks Bill for the original posting. I know we'll be preparing a presentation in the coming week and a video to promote this program.

Ed Bisquera

Via America One Finace :

FANNIE MAY HOMEPATH PROGRAM OFFERS GREAT HOME BUYING OPPORTUNITY

This one could come and go... I finally have a product that I am happy to announce to the world and happy to say it can make the american dream come true!

It almost sounds too good to be true but it is the real deal... 3% down, no mortgage insurance, no appraisal, 6% seller concession, and you don't have to move to the country to get this offer!

FannieMae really wants to get rid of the homes they have had to take back. This offers a fine opportunity to score a low priced home and get a great loan in the process. The loan side of the deal is called the HomePath program and offers buyers some great rates and incentives to take the plunge including a free warranty wiith the home as well.

HomePath is simply a loan program that makes it more affordable for home buyers to purchase some FannieMae held properties. Not all Fannie Mae products qualify though and you can only use a Homepath qualified lender in which we are more then honored to offer this loan.

The features of the program are:

Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)

You may qualify even if your credit is less than perfect

Available to both owner occupiers and investors

Investors with as little as 10% down and no MI!

Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer

No mortgage insurance*

No appraisal fees

As you can see, there are a lot of benefits, especially the waving of mortgage insurance that can add thousands a year to your payment along with 6% seller concessions and NO APPRAISAL to kill the deal.

So what's the catch here. There are not too many; FannieMae is very motivated to sell a bunch of homes. Here's what I've found... not all FannieMay homes are eligible but we are fortunate to have some BEAUTIES here in Vancouver, Wa. I was amazed to see a 3 bedroom for under $85,000 that a person could buy for as little as $2600 down and 600-700 month! They also allow for some repairs and will be coming up with a renovation loan for these soon as well.

For more info, to search the FannieMae Inventory check out their website... here. If you need an authorized HomePath lender in Washington or Oregon we would be happy to assist in making your dreams come true. If you need a great real estate team to represent you in the purchase, keep you safe and well informed you should contact Shannon Wheeler at Sundin Realty.

Shannon Wheeler

REO Specialist

360-574-4616

Vancouver

reosales@comcast.net

Bill Black CMP
bill@aofdowntown.com
360.326.8891 direct
360.910.3290 cell
America One Finance

Have a great weekend,

Bill Black

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

War Is Declared in 02/24/09 Real Estate Market Report by Mortgage Consultant Ed Bisquera

Ed Bisquera | Loan Network 360-597-8283 — Wed, 25 Feb 2009 20:00:14 -0600

[For the most current issue click here]

February 24, 2009 Real Estate & Economic Report from Ed Bisquera of Mortgage Express in the metro markets of Portland, Oregon & Vancouver, Washington. Featuring news for homebuyers, homeowners, realtors and the general real estate market.

Watch this video below

End of video

War is Declared

Congress and the President have declared war on the weak economy and especially on the housing market. That makes sense because it is the housing market that caused the economy to collapse and we will not have a recovery without a healthy or at least stable housing sector. Immediately after signing the $780 billion Stimulus Bill and putting into law a stronger tax credit and higher allowable loan limits for Fannie Mae, Freddie Mac and FHA, the President wasted no time delivering the second of two strong punches. His housing rescue plan contained several elements that should help the housing market, though it remains to be seen how many will be helped and who will be left out.

The goal of the housing plan is to help nine million homeowners. That is a very ambitious number, especially considering the fact that there are less than 100 million homeowners in the United States. If 10% to 20% of the homeowners are assisted, certainly it will help bring about economic recovery more quickly. The number is not too ambitious considering the fact that millions of homes have already gone into foreclosure and millions more are waiting in the wings. Our news this week will contain a description of the elements of the stimulus package and next week we will cover the President’s housing plan. But we caution that since the final regulations are not published, these details may change in the coming weeks and months.

Rates fell again in the past week. Freddie Mac announced that for the week ending February 19, 30-year fixed rates averaged 5.04%, down from 5.16% the week before. The average for 15-year fixed fell to 4.68%. Adjustables also fell with the average for one-year adjustables decreasing to 4.80% and five-year adjustables falling to 5.04%. A year ago 30-year fixed rates were at 6.04%. "Rates followed bond yields lower this week as recent economic reports suggest the economy is still slowing, which reduces the future threat of inflation," said Frank Nothaft, Freddie Mac vice president and chief economist. "And consumer sentiment fell in February for the first time in three months to near its lowest level since May 1980, while industrial production slowed in January by more than the market consensus. Meanwhile, the housing market is not doing any better. New housing construction slowed to an all-time record low of 466,000 homes (annualized) in January since records began in January 1959." Note: average rates do not include fees and points. Information is provided for indicating trends only and should not be used for comparison purposes.

Current Indices For Adjustable Rate Mortgages
Updated February 20, 2008

	Daily Value	Monthly Value
	Feb. 19	January
6-month Treasury Security	0.51%	0.30%
1-year Treasury Security	0.67%	0.44%
3-year Treasury Security	1.38%	1.13%
5-year Treasury Security	1.89%	1.60%
10-year Treasury Security	2.85%	2.52%
12-month LIBOR–WSJ		1.904% (Jan)
12-month MTA		1.633% (Jan)
11th District Cost of Funds		2.757% (Dec)
Prime Rate		3.25% (Dec)

Last week, President Obama signed into law the American Recovery and Reinvestment Act of 2009, which contains nearly $800 million in economic stimulus spending and tax relief designed to help individuals and businesses in the current economic climate. The following is a list of some of the major provisions of the new law without significant details which will follow as rules are issued. Note that many of the benefits are temporary and/or are phased out for higher income individuals.

Higher Loan Limits. Conforming and FHA mortgage limits in high-cost areas were temporarily raised back to the limits which expired at the end of 2008. This will mean an increase from $625,000 to just under $730,000 in higher cost of living areas such as Northern California and New York City. The bottom line will be lower rates in these areas because "jumbo" loans carry a higher rate.

"Making Work Pay" Tax Credit. For 2009 and 2010, the Act creates a refundable tax credit of up to $400 for working individuals or $800 for couples with modified adjusted gross income (MAGI) that does not exceed $75,000 or $150,000 respectively. An additional credit was passed for those who do not work, such as the retired and the disabled.

AMT Exemption Raised. The Act raises AMT exemption amounts above 2008 levels to $70,950 for joint filers and surviving spouses (up from $69,950 in 2008); and $46,700 for single filers and heads of households (up from $46,200).

First-Time Homebuyer Tax Credit. The Act expands the low-to-moderate income first-time homebuyer tax credit, originally enacted under the Housing Assistance Tax Act of 2008. The maximum amount of the credit is increased to $8,000 and the Act eliminates the repayment obligation for qualified principal residences purchased from January 1, 2009 through November 30, 2009. To be exempt from repayment, the homebuyer must stay in the home for three years.

New Car Deduction. Effective for new vehicle purchases on or after February 17, 2009, the Act allows qualified taxpayers an above-the-line deduction for all state, local sales and excise taxes paid relating to the first $49,500 of the purchase price of a new car, light truck or other vehicle through the end of the year.

Education Tax Credit. For 2009 and 2010, the Act expands and renames the existing HOPE education credit, increasing the credit amount (subject to income limits) from $1,800 to $2,500 a year and applying the credit to all four years of college. The Act also makes 40% of the credit refundable and adds course materials as qualifying expenses.

Bonus Depreciation. The Act extends the first-year 50% bonus depreciation enacted under the 2008 Economic Stimulus Act for new business equipment purchases through December 31, 2009. The Act also extends through 2010 bonus depreciation for other qualified property.

Net Operating Loss Carryback. The Act enables qualified small businesses with average gross receipts of $15 million or less to carry net operating losses back for up to five years. The carryback provision applies to any NOL for tax years beginning or ending in 2008

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

Loan Modifications and high rate of default raise concerns by GOP Lawmakers

Ed Bisquera | Loan Network 360-597-8283 — Wed, 25 Feb 2009 13:26:28 -0600

GOP lawmakers take issue with loan modifications
Concerns raised by about bill to let bankruptcy judges alter mortgages

Originally posted on my blog at blog.pdxloan.com

By Ronald D. Orol, MarketWatch
Last update: 6:14 p.m. EST Feb. 24, 2009

WASHINGTON (MarketWatch) - Citing recent statistics about high re-default rates on reworked home loans, Republican lawmakers expressed concerns Tuesday about the viability of a new Obama administration plan to modify mortgages for troubled homeowners.
"It is important that we have statistics and knowledge that there are high re-defaults on modified mortgages, but in fact these reports actually reinforce a lender's resolve not to modify," said Rep. Kenny Marchant, R-Texas, in a House Financial Services subcommittee hearing.
"What mortgage shareholder would urge its institution to modify or extend or renew a loan that has a 1-in-3 chances in default?" asked Marchant.
Marchant cited statistics released earlier in the day by the Office of Thrift Supervision showing that more than half of all modified mortgages defaulted again within six months.

Read the rest of the story below:

GOP lawmakers take issue with loan modification plan - MarketWatch

Follow me on
Facebook
Twitter
Activerain Blog
LinkedIn
YouTube Video Posts

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

4.875% (4.99% APR) in 02/20/09 Mortgage Market Commentary and News For Washington & Oregon

Ed Bisquera | Loan Network 360-597-8283 — Fri, 20 Feb 2009 12:52:04 -0600

Ed Bisquera Mortgage Consultant Portland Oregon Vancouver Washington

Most rates improved today as mortgage bonds regain some of the losses from Thursday following the direction of Treasuries, which are busy gaining back yesterday’s losses. Up and down…up and down. The good news is mortgages, while trending in the same direction as Treasuries, have not seen the massive swings in price, thanks in part to the Fed’s intervention. Let’s hope this trend continues as massive swings in rates coupled with longer turn times due to volume creates all kinds of problems for both brokers and lenders alike. The Dow has sunk below its November lows in search of a bottom, down over 100-points at the moment at 7355. Blame the banks: fears of nationalization, under capitalization and, of course, the whole Swiss tax evasion issue isn’t helping either. Happy Friday…

In the News:

Jumbo Defaults Up While Getting Jumbo Loans Proves More Difficult

Jumbo Loan Defaults Rise at Fast Pace as Rich Sufferr

Feb. 20 (Bloomberg) -- Luxury homeowners are falling behind on mortgage payments at the fastest pace in more than 15 years, a sign the U.S. financial crisis that began with the poorest Americans has reached the wealthiest.

About 2.57 percent of prime borrowers who took out jumbo loans last year were at least 60 days delinquent, a percentage reached within 10 months and the fastest since at least 1992, according to LPS Applied Analytics, a mortgage data service in Jacksonville, Florida. That’s almost twice as quickly as 2007 borrowers fell behind and a level 2006 owners haven’t attained after almost three years.

The jump in late payments on jumbo loans, while still lower than the 20 percent delinquencies in subprime mortgages, signals that the borrowers with the most money and the best credit are hurting as the U.S. recession deepens in its second year. It also means these loans will be even more difficult to obtain and more expensive to pay off.

== READ THE REST HERE: Jumbo Defaults Up While Getting Jumbo Loans Proves More Difficult

Today’s Lock Rate (Feb 20, 2009)

30 YR Fixed 4.875% (4.99%APR)

(740+FICO/<=80%LTV/Rate & Term/30 Day Lock Full Documentation/With Impounds)

Call me at (360) 597-8283 for your pre-approval and I’ll provide a Good Faith Estimate & Lock Terms to secure your refinance or purchase loan and rate.

Interest Rates AND Demand for purchase and refinance funds will likely increase now that the $787 Billion Dollar Stimulus Package has passed.

Don’t wait or waste time, email me ed@pdxloan.com or call 360.597.8283 to today, to secure these funds now!

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

Volatility reported in 01/27/09 Real Estate Market Report by Mortgage Consultant Ed Bisquera

Ed Bisquera | Loan Network 360-597-8283 — Wed, 28 Jan 2009 15:12:21 -0600

[For the most current issue click here]

January 28, 2009 Real Estate & Economic Report from Ed Bisquera of Mortgage Express metro markets of Portland, Oregon & Vancouver, Washington. Featuring news for homebuyers, homeowners, realtors and the general real estate market.

Volatility

If we could sum up the markets in one word right now, the word would be "volatility." The past several days we were volatile on the downside for stocks and bonds. And up for oil. It is interesting because at least one pattern was broken. In the past few months rates and oil prices would go lower as the stock market went down. But in the past two weeks the stock market has fallen while rates and oil prices have increased. Is this a new pattern? Such a pattern would be disturbing because lower rates and oil prices are good news for the economy and thus stocks. The question is–why do we have rates going up if the economy is so bad?

One explanation is a "bounce." Rates and oil prices have moved so far so fast that a few bounces upward are likely. Or, it could be that the markets are worried about the government borrowing several trillion dollars for economic stimulus which is rekindling long-term inflation fears. How we go from deflation fears one week to inflation fears the next week is hard to imagine–but that is what breeds volatility. If inflation is the real concern, we may have seen the lows for rates and oil. If it is a technical bounce, we could always bounce back. We won’t try to predict the future here. Excepting to predict more volatility because of such conflicting forces.

The Markets. The streak was broken after 11 straight weeks of lower rates. Freddie Mac announced that for the week ending January 22, 30-year fixed rates averaged 5.12%, up from 4.96% the week before. The average for 15-year fixed rose to 4.80%. Adjustables were mixed with the average for one-year adjustables increasing to 4.92% and five-year adjustables falling slightly to 5.24%. A year ago 30-year fixed rates were at 5.48%. "Fixed mortgages followed bond yields and edged up this holiday week," said Frank Nothaft, Freddie Mac vice president and chief economist. "However, over the first three weeks of 2009, 30-year fixed mortgages averaged 0.25 percentage points below its monthly average for December 2008. As a result, the number of mortgage applications for refis was roughly about 86 percent of all conventional loans over the same time period."

Note: If you are interested in receiving an article designed to help you make the right refinance decision, please contact me.

Current Indices For Adjustable Rate Mortgages
Updated January 23, 2009

	Daily Value	Monthly Value
	Jan 22	December
6-month Treasury Security	0.29%	0.26%
1-year Treasury Security	0.42%	0.49%
3-year Treasury Security	1.11%	1.07%
5-year Treasury Security	1.61%	1.52%
10-year Treasury Security	2.62%	2.42%
12-month LIBOR–WSJ		2.406% (Dec)
12-month MTA		1.826% (Dec)
11th District Cost of Funds		3.155% (Nov)
Prime Rate		3.25% (Dec)

Mini Sales Booms Reported In Hardest Hit Areas of Depreciation

Some cities that were hardest hit by the real downturn are experiencing mini sales booms. Las Vegas real estate properties are down 28 percent in price, but sales of homes are up 15 percent. Motivated buyers accounted for 64 percent of Las Vegas sales in October, says Radar Logic, a derivatives firm. That’s the highest rate in the country. "There’s a pretty active housing market, it’s simply at a lower-priced inventory," says Michael Feder, chief executive of Radar Logic. "And there are now bidding wars taking place over homes in foreclosure." Phoenix and San Diego are reporting similar experiences. "We’re clearing out the bad news," says Kiva Patten, a director at Merrill Lynch specializing in housing derivatives. "By the end of 2010 – that’s where we’re calling the bottom in the forward market. You’re going to get a small price appreciation in 2011," says Patten. "It’s not like the turn is 10 percent per year, it’ll be something like 3 percent or 4 percent." Source: Forbes

Size Of Homes Drops Over Last Year's Average

The National Association of Home Builders (NAHB) reports a drop in home size to an average 2,438 square feet in last year’s third quarter from 2,629 square feet in the second quarter. NAHB research director Gopal Ahluwalia expects shrinking residence size to be a lasting trend, noting that consumers are more concerned about affordability and recognize that smaller households do not need large dwellings. According to a January NAHB survey of builders, 89 percent have downsized their offerings. American Institute of Architects chief economist Kermit Baker attributes the trend to the weak economy, residential price declines and rising energy costs. Source: USA Today

==About Ed Bisquera==

As your trusted Mortgage Consultant & Advisor, I help you understand the process of acquiring a residential, commercial or investment property loan. Communication and integrity are very important to me in earning your trust and your business. I'm your "Mortgage Matchmaker" helping you through the mortgage process and showing you innovations and the latest news you can use in the real estate and mortgage industry.

As part of my effort to share knowledge and keep you abreast of the latest news in real estate, finances and business in general, I offer this weekly and monthly newsletter update to you.

Please feel free to forward this or send anyone you know to my personal blog, at which this and past newsletters are available.

WA Lic # 510-LO-35270 OR ML #1952

My Profile Video is Here

Follow me on Facebook Twitter Activerain Blog LinkedIn YouTube Video Posts

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

What is "PAR" rate and how can I meet or beat it? (Using golf as an example.)

Ed Bisquera | Loan Network 360-597-8283 — Wed, 28 Jan 2009 13:16:13 -0600

Ken, thanks for a wonderful post regarding "PAR" rate and defining it for our industry.

I often say that while we (Mortgage Pro's) know all the lingo and how a loan is underwritten, etc, it's our job to be like a conductor of an orchestra and coordinate the whole process, while explaining to our clients how everything works in a simplistic language, without talking down to them. And your post clearly is a good example of simplifying the definition.

And I of course, I like the golf metaphor too! :-)

Great show again this week and I look forward to chatting with you again soon.

Ed Bisquera

Follow me on Twitter

Follow me on Activerain

Via Ken Cook - Lender - Investor Specialist:

Golfers already know - par is when you reach balance with the score on the golf course. Many golfers instead of writing down the total number of strokes record the number of strokes over or under the par. In golf par is the standard to aim for. The same applies in mortgage lending and investment borrowing.

Not every golf player "shoots at par". Others actually beat par - they beat the standard. Tiger Woods has a bad day when he shoots a par score on the golf course and I am joyous when I'm within 15 points over par. In fact that is my handicap. I have a handicap of 15. Essentially this means I can reasonably expect to have to hit the ball (add a stroke) on 15 holes and get the other 3 at par.

Par on the golf course is determined by playing a few games and keeping my score then using a weighted set of numbers called Course Difficulty and Course Slope. On a more difficult course I may actually shoot 17 over par and still hit my mark and on a less difficult course I may have to shoot a 13 or even a 12 over par game to keep my handicap.

All of the things that go into course difficulty and slop ratings have to do with the course itself plus a sampling of all the other "scored" games played on that course. To make it really fun the actual hole, called the cup, is moved around on the green, the condition of the turf (the grass), dry weather, wet weather, windy weather, and the list goes on, all effect the golfer's chance of scoring a par. All of those are a part of the risk and all go into the resulting score which is how far you are from par.

I think you probably know where I am going with this, eh?

Par interest rate is the zero rate. It's where the broker is not making any YSP (Yield Spread Premium). It is lower than the retail rate you would get if you called the bank directly. There are some very small but very vocal groups out their claiming the par rate is the rate the borrower is qualified for. Nothing could be farther from the truth. Par is the equivalent of wholesale.

Do you go into a restaurant expecting to pay wholesale for your prepared meal? If you do you must be uncle Posie who bargains with the checker at Publix over a can of peas. Let us look at that prepared meal. The restaurant has paid wholesale for the items and provided all the services needed to put that meal together. They have created a price and placed it on their menu. You have agreed to pay that price and calculate it to be a worthy value. In some ways loans are not too different but that's for another day.

Your interest rate (not the interest rate) is based on the risk you and your home present to the lender. So let's say the par rate is 6% for example. And let's say you are a very good borrower. You have a credit score of 800 plus, a debt-to-income ratio of 35% on all of your credit payments, 36 months of liquid reserves, your home is in a very low foreclosure area where values are still actually increasing (these areas do actually exist) and you only need to borrow 75% of your home's value. Chances are you are going to get the best rate available. If your loan amount is high enough and you are going to be paying your closing costs "out of pocket" you will be able to get the par rate. In fact you can even pay "discount points" to get the rate below par.

Closing costs are paid from somewhere and everybody pays closing costs. You either pay origination, discount or a premium rate. You may even pay a combination of the three. You want par? You will be paying the costs somewhere - either out of the proceeds of the loan, out of your pocket or in the rate.

One last note: the misconception (and it is a horrible misconception) is the brokers add the yield spread to the rate. Absolutely NOT true. If you want to get the broker's wholesale rate then you will have to pay all of the broker's fees out of pocket. The broker's par rate is not your rate, it is the wholesale rate. The par rate is lower than the rate you get from the bank specifically so the broker can be paid by the lender OR by you for part or all of their origination fees. This does not increase the cost of the loan to you over what you would pay at the bank.

If you have been quoted ANY rate with no closing costs you better have a very good understanding of what you are looking at because you can bet you ARE paying for closing costs - one way or another. If you are shopping and nobody has looked at your credit, income, assets, and property value the rate quote is worthless. The rate quote is no good if you do not qualify for it. Unfortunately the mortgage industry is still filled with liars and inexperienced loan officers who do not properly complete the Good Faith Estimate and Truth-In-Lending. And remember, until they have seen your credit, income, assets, and property value that GFE and TIL are still worthless.

When you're ready for the truth and you live in the Southeast call me. I will tell you the truth and if that doesn't sound good enough for you then you can go away. 866-946-0120 extension 101. America's most honest mortgage company. Seriously, we lose business every day because we refuse to lie. Unfortunately we have volumes of stories from people who could have had a great loan, reasonably priced and how we told them who ended up at the closing table feeling forced to sign documents and get a loan that was nothing like the big national lender told them it would. WE WILL NOT MISLEAD YOU but we will give you the choices you need to make an intelligent decision.

99% of borrowers do not understand the mortgage process. Do not be embarrassed to admit you don't. Every loan office who has been in the business can tell within a couple of minutes how knowledgeable you are just by the questions you ask. Least knowledgeable person's most often asked first question? "What are your interest rates?"

Thanks!

-Ken

Ken Cook 866-946-0120 extension 101

TWITTER - UTTERLI - Twitter Tuesday Radio - EZINE ARTICLES - KEN@NOVATION

-----

SEO SERP and Content Creation for your real estate related online success.

THE OPINIONS IN THIS COMMENTARY ARE STRICTLY KEN COOK's PERSONAL OPINION AND NOT REFLECTIVE ON ACTIVE RAIN, NOVATION MORTGAGE, or ANY SPONSOR OF THIS WEBSITE.

EDUCATION BEATS LEGISLATION EVERY TIME. Get your clients, friends and family members to a LENDER RUN home mortgage seminar as soon as possible.

Copyright©2008 Ken Cook. Georgia and Florida real estate investment loans, FHASecure and FHA Home Loans, nationwide commercial hard money and small business loans, non-recourse loans for real estate investors

Novation Mortgage, 2501 E Piedmont Road, Suite 201, Marietta, GA 30062 Georgia Residential Mortgage Licensee 20014. Florida Mortgage Broker Business MBB 0703760 FHA Lender - Equal Housing Lender

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

01/24/09 President Obama's Weekly Address (he mentions economic plan, helpful to know and share)

Ed Bisquera | Loan Network 360-597-8283 — Mon, 26 Jan 2009 14:39:34 -0600

Here's a re-posting of President Obama's first weekly address as President of the United States. And below is a transcript of his address in its' entirety:

Remarks of President Barack Obama (original blog post here)

Weekly Address Saturday, January 24th, 2009

We begin this year and this Administration in the midst of an unprecedented crisis that calls for unprecedented action. Just this week, we saw more people file for unemployment than at any time in the last twenty-six years, and experts agree that if nothing is done, the unemployment rate could reach double digits. Our economy could fall $1 trillion short of its full capacity, which translates into more than $12,000 in lost income for a family of four. And we could lose a generation of potential, as more young Americans are forced to forgo college dreams or the chance to train for the jobs of the future.

In short, if we do not act boldly and swiftly, a bad situation could become dramatically worse.

That is why I have proposed an American Recovery and Reinvestment Plan to immediately jumpstart job creation as well as long-term economic growth. I am pleased to say that both parties in Congress are already hard at work on this plan, and I hope to sign it into law in less than a month.

It’s a plan that will save or create three to four million jobs over the next few years, and one that recognizes both the paradox and the promise of this moment - the fact that there are millions of Americans trying to find work even as, all around the country, there’s so much work to be done. That’s why this is not just a short-term program to boost employment. It’s one that will invest in our most important priorities like energy and education; health care and a new infrastructure that are necessary to keep us strong and competitive in the 21st century.

Today I’d like to talk specifically about the progress we expect to make in each of these areas.

To accelerate the creation of a clean energy economy, we will double our capacity to generate alternative sources of energy like wind, solar, and biofuels over the next three years. We’ll begin to build a new electricity grid that lay down more than 3,000 miles of transmission lines to convey this new energy from coast to coast. We’ll save taxpayers $2 billion a year by making 75% of federal buildings more energy efficient, and save the average working family $350 on their energy bills by weatherizing 2.5 million homes.

To lower health care cost, cut medical errors, and improve care, we’ll computerize the nation’s health record in five years, saving billions of dollars in health care costs and countless lives. And we’ll protect health insurance for more than 8 million Americans who are in danger of losing their coverage during this economic downturn.

To ensure our children can compete and succeed in this new economy, we’ll renovate and modernize 10,000 schools, building state-of-the-art classrooms, libraries, and labs to improve learning for over five million students. We’ll invest more in Pell Grants to make college affordable for seven million more students, provide a $2,500 college tax credit to four million students, and triple the number of fellowships in science to help spur the next generation of innovation.

Finally, we will rebuild and retrofit America to meet the demands of the 21st century. That means repairing and modernizing thousands of miles of America’s roadways and providing new mass transit options for millions of Americans. It means protecting America by securing 90 major ports and creating a better communications network for local law enforcement and public safety officials in the event of an emergency. And it means expanding broadband access to millions of Americans, so business can compete on a level-playing field, wherever they’re located.

I know that some are skeptical about the size and scale of this recovery plan. I understand that skepticism, which is why this recovery plan must and will include unprecedented measures that will allow the American people to hold my Administration accountable for these results. We won’t just throw money at our problems - we’ll invest in what works. Instead of politicians doling out money behind a veil of secrecy, decisions about where we invest will be made public, and informed by independent experts whenever possible. We’ll launch an unprecedented effort to root out waste, inefficiency, and unnecessary spending in our government, and every American will be able to see how and where we spend taxpayer dollars by going to a new website called Recovery.gov.

No one policy or program will solve the challenges we face right now, nor will this crisis recede in a short period of time. But if we act now and act boldly; if we start rewarding hard work and responsibility once more; if we act as citizens and not partisans and begin again the work of remaking America, then I have faith that we will emerge from this trying time even stronger and more prosperous than we were before. Thanks for listening.

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

Why are interest rates seemingly rising lately? It's simple...

Ed Bisquera | Loan Network 360-597-8283 — Thu, 22 Jan 2009 13:34:24 -0600

You may be wondering why rates are rising again. Simply, borrower demand is driving up pricing, because banks raise their rates as the available capacity starts to feel pressure and leads to them wanting to realize greater profits (not such a big surprise here). Hopefully this will ease demand, so if rates continue to see demand from borrowers, they (banks, in reaction to investors) start to drive the pricing of interest rates up to ease the capacity.

You'll see this occur, because it's basically the rule of supply and demand, amongst other factors as you will read below in this re-post of Bankrate.com's press release I received earlier today.

Ed Bisquera

P.S. It's not entirely a case of worrying though; I priced out a loan for a client this morning and was at 5 % (5.13% APR), but conditions of loan applicant, loan to value, etc, were driving factors in still securing a competitive rate.

Simply quoting rates of the day is not a simple process, so consult with your mortgage consultant and give him/her ALL the details about your situation, because there are many factors to consider. :-) Have a great week!

P.S.S. What does this really mean for consumers that wait instead of locking in low rates, thinking 'but it might go lower' ? It MEANS THAT if you are waiting to lock in rates when rates are falling and thinking it will fall further, all the demand on the pricing while you're waiting, will most possibly cause rates to go back up, because of the supply and demand element. If it's a good deal, those that jump in earlier, rather than later, most likely will take advantage of the deal. Just my two cents... ;-)

=== Mortgage Rates Rebound to Three-Week High (Bankrate) ===

NEW YORK, Jan. 22 /PRNewswire-FirstCall/ -- Mortgage rates increased after falling in each of the previous three weeks. According to Bankrate.com's weekly national survey, the average 30-year fixed mortgage rate is now 5.59 percent with an average of 0.3 discount and origination points.

The average 15-year fixed rate mortgage jumped to 5.2 percent and the average jumbo 30-year fixed rate climbed to 7.22 percent. Adjustable rate mortgages were mixed, with the average 1-year ARM sliding to 5.91 percent and the 5/1 ARM rising to 5.58 percent.

The reversal in mortgage rates was prompted by investors' nervousness about a large supply of government debt and renewed concerns about the health of banks. Higher yields on benchmark Treasury debt and wider mortgage credit spreads spelled an increase in mortgage rates versus one week ago. While mortgage rates remain historically low, the barrier for many homeowners is lack of equity. Similarly, a lack of downpayment could be a barrier to an otherwise well-qualified home buyer.

Lower mortgage rates have opened the door to refinancing for homeowners with equity. As recently as October, the average 30-year fixed mortgage rate was 6.77 percent, meaning a $200,000 loan would have carried a monthly payment of $1,299.86. With the average rate having since fallen to 5.59 percent, the monthly payment on a $200,000 loan is now $1,146.90.

SURVEY RESULTS

30-year fixed: 5.59% -- up from 5.28% last week (avg. points: 0.30)
15-year fixed: 5.20% -- up from 4.89% last week (avg. points: 0.37)
5/1 ARM: 5.58% -- up from 5.51% last week (avg. points: 0.38)

Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

For a full analysis of this week's move in mortgage rates, go tohttp://www.bankrate.com/mortgagerates

The survey is complemented by Bankrate's weekly forward-looking Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next 30 to 45 days. There is no firm conviction among the panelists this week, with 38 percent predicting that rates will remain more or less unchanged over the next 30 to 45 days. The remaining respondents are evenly split, with 31 forecasting higher rates and 31 percent expecting lower rates.

For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI

=== End of original post ===
Visit http://sev.prnewswire.com/banking-financial-services/20090122/CLTH05022012009-1.html for original post

Follow me on
Facebook
Twitter
Activerain Blog
LinkedIn
YouTube Video Posts

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

Will recession end? 01/20/09 Real Estate Market Report for Portland, OR & Vancouver, WA

Ed Bisquera | Loan Network 360-597-8283 — Wed, 21 Jan 2009 15:25:52 -0600

[For the most current issue click here]

January 20, 2009 Real Estate & Economic Report from Ed Bisquera of Mortgage Express metro markets of Portland, Oregon & Vancouver, Washington. Featuring news for homebuyers, homeowners, realtors and the general real estate market.

What Will Cause The Recession To End?

To understand what will cause the recession to end, we must understand what caused the recession. There were many causes, but the most visible culprit was an uncontrolled real estate boom. First it was the sub-prime crisis halting the boom. The government indicated that real estate would weather the crisis. Well, the real estate market did not weather the crisis. Then the government said the economy could weather the real estate crisis. As we pointed out in The Real Estate Report 12 months ago, as the real estate market goes, so does the economy. The housing industry directly or indirectly employs about one-fifth of Americans, depending upon how the numbers are counted. You can’t have a weak link in a chain which is that significant of a segment of the overall chain. Now the recession has spread across the globe because of the importance of our economy.

So, when will the recession end? The end of the weak real estate market will bring the end of the recession. Of course, it is likely that you will then ask us, when will the real estate market become strong again? Here we would suggest you look at the cost of ownership vs. the cost of renting. At the height of the boom, the cost of owning was significantly higher than the cost of renting–though some of these costs were masked by easy lending standards and innovative products. Now housing prices are going down and so are rates. There are already areas of the country that are reporting that owning is becoming cheaper than renting–especially after taxes are taken into consideration. When we reach this point in the majority of the country, the price of housing will stabilize. And when prices stabilize, banks will be more willing to lend. This cycle will lead us out of the morass. When will that happen? We wish we had a crystal ball, however, we do know that the lower rates go, the more quickly the date is likely to arrive.

The Markets. Mortgages continued their assault on record lows as they dropped for the 11th week in a row. Freddie Mac announced that for the week ending January 15, 30-year fixed rates averaged 4.96%, down from 5.01% the week before. The average for 15-year fixed rose slightly to 4.65%. Adjustables fell as well with the average for one-year adjustables decreasing to 4.89% and five-year adjustables falling sharply to 5.25%. A year ago 30-year fixed rates were at 5.69%. "Rates for 30-year fixed rate mortgages fell for the 11th straight week to another record low, due in part to the slowing economy and government actions," said Frank Nothaft, Freddie Mac vice president and chief economist. "So far, both the U.S. Treasury Department and the Federal Reserve have added over $100 billion in liquidity to the mortgage market since September 2008, which put downward pressure on rates for fixed-rate mortgages. The Federal Reserve may add up to an additional $570 billion more this year, based on its November 25, 2008 announcement, to further shore up mortgage lending and keep rates low. In December, the unemployment rate rose to 7.2 percent, the highest since January 1993, and the economy lost 2.6 million jobs over 2008, the largest annual drop since 1945. That brought down yields on Treasury securities."

Current Indices For Adjustable Rate Mortgages
Updated January 16, 2009

	Daily Value	Monthly Value
	Jan 15	December
6-month Treasury Security	0.29%	0.26%
1-year Treasury Security	0.42%	0.49%
3-year Treasury Security	1.01%	1.07%
5-year Treasury Security	1.36%	1.52%
10-year Treasury Security	2.23%	2.42%
12-month LIBOR–WSJ		2.406% (Dec)
12-month MTA		1.823% (Dec)
11th District Cost of Funds		3.155% (Nov)
Prime Rate		3.25% (Dec)

House tax writers are proposing to make a first-time homebuyer tax credit more attractive to buyers and provide tax refunds for builders and certain financial institutions that have incurred large losses in 2008, but were profitable in past years. "This package was developed with strong coordination between the House and Senate leaders, president-elect Obama and his economic team," Rep. Rangel said. The tax package removes a repayment requirement on the $7,500 first-time homebuyer tax credit. But it does not increase the tax credit or expand it to all homebuyers as requested by the homebuilders and Realtors. These tax provisions and others will be included in the economic stimulus bill. If all home buyers become eligible for a tax credit without a repayment feature, it could result in an additional 555,000 home sales, enough to meaningfully draw down excess housing inventory, the National Association of Realtors says. An evaluation of options for a home buyer tax credit by NAR shows wide ranging implications and benefits. A full credit to all buyers means an additional 2.22 million households would meet the income requirements for purchasing a home, but only one in four of those households would actually make a purchase. Source: National Mortgage News and NAR

When the National Association of Home Builders convenes its annual trade show in Las Vegas beginning Jan. 20, attendees will be considering many new trends in home design and amenities. Since 1992, the number of U.S. homes with porches and patios has doubled. New homes in warm climates are being built with courtyards that offer shelter and privacy while still offering an outdoor feel. With lots getting smaller, underground space is growing more valuable for everything from family rooms to “man caves” to underground garages. Great rooms continue to grow in importance, while formal living rooms grow ever more passé. In addition, there are no more offices in spare bedrooms. The latest is to have a separate space where the mobile workforce member can receive work-related visitors or seat assistants without traipsing these folks through the home. Finally, wider doors and first-floor masters help aging baby boomers stay home as they grow old.Source: Business Week

==About Ed==

As part of my effort to share knowledge and keep you abreast of the latest news in real estate, finances and business in general, I offer this weekly and monthly newsletter update to you.

Please feel free to forward this or send anyone you know to my personal blog, at which this and past newsletters are available.

WA Lic # 510-LO-35270 OR ML #1952

Follow me on Facebook Twitter Activerain Blog LinkedIn YouTube Video Posts

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

Top Stops For Home Buyers Shopping Are Internet, Agents and...

Ed Bisquera | Loan Network 360-597-8283 — Tue, 13 Jan 2009 12:38:04 -0600

[Originally posted at my blog, click here]

An overwhelming majority (87%) of recent home buyers in the US say they used the internet as an information resource during their home-buying process, and nearly one-third say they first learned about their newly purchased home from an online channel, according to a study from the National Association of Realtors (NAR).

When asked where they first learned about the home they purchased, 34% of buyers said a real-estate agent; 32% cited the internet; 15% said from yard signs; 7% said from a friend, neighbor or relative; 7% said home builders; 3% said from a print or newspaper ad; 2% learned directly from the seller; and 1% from a home book or magazine.

Though the internet was the most popular source, buyers also cited information from real-estate agents (85%), yard signs (62%), open houses (48%) and print or newspaper ads (47%). Fewer buyers relied on home books or magazines, home builders, television, billboards and relocation companies, the study said.

The NAR also found that 87% of home buyers used the internet to search for a home purchased through a real estate agent, in contrast with 72% of non-internet users who were more likely to purchase in a private transaction directly from a builder or from an owner they already knew.

Local metropolitan multiple-listing-service websites are the most popular internet information resources, consulted by 60% of buyers, followed by Realtor.com (48%), real-estate company sites (46%); real-estate agent websites (%); for-sale-by-owner sites (19%); and local newspaper sites (11%).

Other survey findings are detailed below.

First Time Home-Buyers Up Slightly

First-time home buyers have risen in market share - to 41% of transations from 39% last year - and plan to own their homes for 10 years, up from seven years in 2007.
The median age of first-time buyers is 30, down from 31 in 2007, and the median income was $60,600. The typical first-time buyer purchased a home costing $165,000.
The typical repeat buyer is 47 years old, earned $88,200, purchased a home costing $236,000 and has plans to stay in that home for 10 years.

Downpayments on the Rise

The median downpayment by first-time buyers was four percent, up from two percent in 2007.
The number of buyers purchasing with no money down fell from 45% in 2007 to 34% in the current survey.
Among first-time buyers who made a downpayment, 69% used savings and 26% received a gift from a friend or relative, typically from their parents. Another seven percent received a loan from a relative or friend, while 16% tapped into a 401(k) fund, stocks or bonds.
92% of buyers chose a fixed-rate mortgage.
Repeat buyers made a median downpayment of 15% , but 10% paid cash for their property.

Buyers and Sellers Use Agents

81% of home buyers and 84% of sellers used a real-estate professional, comparable to 2007.
Nearly nine out of 10 home buyers and sellers would definitely or probably use the same agent again or recommend him or her to others, consistent with 2007 .
38% of sellers found their agent as a result of a referral, while 26% used the agent in a previous home purchase. Similarly, 43% of buyers relied on referrals to find an agent, while 18% of repeat buyers used an agent from a previous transaction.
Only one percent of sellers chose an agent based on his or her commission.
46% report that the real estate agent initiated a discussion of compensation, while 24% of sellers brought up the topic and the agent was willing to negotiate the commission or fee.
13% percent of sellers did not know commissions and fees are negotiable.
The level of ‘for-sale-by-owner’ transactions was 13%, up slightly from a record-low market share of 12% in both 2007 and 2006. The level of homes sold without professional representation has trended lower since reaching a cyclical peak of 18% in 1997.
Factoring out properties that were never placed on the open market, the actual number of homes sold without professional assistance is seven percent. This matches the results in the 2007 study and marks a downtrend from 10% sold on the open market in 2004.
The median home price for sellers who used an agent was $211,000 vs. $153,000 for a home sold directly by an owner, though unassisted sellers were more likely live in rural areas or small towns where sellers are more likely to know potential buyers.
The most difficult tasks reported by unrepresented sellers are selling within the planned length of time, getting the right price, preparing the home for sale, and understanding and performing paperwork.

Foreclosure Purchases Higher

The percentage of buyers who purchased a home in foreclosure jumped to six percent of transactions in the 2008 survey, from one percent in 2007.
Another 38% of buyers considered purchasing of a home in foreclosure but did not, primarily because they could not find the right home.

Features and Incentives Up

Environmentally friendly features were cited as desirable by 90% of buyers. Heating and cooling costs were of primary importance, followed by energy efficient appliances and energy efficient lighting
42% of sellers offered incentives to attract buyers, such as assistance with closing costs or home warranty policies.

Additional Demographic Information

The median age of home sellers was 47 and median income was $91,000.
61% of buyers are married couples, 20% are single women, 10% single men, 7% unmarried couples and two percent fall into other categories.
26% of buyers are non-white, nine percent were born outside of the US, and four percent primarily speak a language other than English.
78% of all respondents purchased a detached single-family home, 9 percent a condo, 8 percent a townhouse or rowhouse, and 5 percent some other kind of housing.
55% of all homes purchased were in a suburb or subdivision, 17% were in an urban area, 16% in a small town, 10% in a rural area and two percent in a resort or recreation area. The median distance from the previous residence was 12 miles.
The typical home sold for 96% of the listing price, and 86% of sellers were satisfied with the selling process.
52% of sellers were trading up to a larger home, while 22% were downsizing.
Overall, buyers searched a median of 10 weeks and viewed 10 homes.
Nearly nine out of 10 people consider their home a good investment, and almost half see it as a better investment than stocks.
15% of buyers own two or more homes.

About the study: The 2008 National Association of Realtors Profile of Home Buyers and Sellers is the latest in a series of large national NAR surveys evaluating demographics, marketing, preferences and experiences of home buyers and sellers. NAR mailed an eight-page questionnaire in August 2008 to a national sample of 133,000 home buyers and sellers who purchased their homes between July 2007 and June 2008, according to county records. There were 10,053 usable responses and the adjusted response rate was 7.9%. All information is characteristic of the 12-month period ending in June 2008 with the exception of income data, which are for 2007. Because of rounding and omissions for space, percentage distributions for some findings may not add up to 100 percent.

Follow me on Facebook Twitter Activerain Blog LinkedIn YouTube Video Posts

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

Some Daunting Numbers for US in Real Estate Market Report for 01/13/09

Ed Bisquera | Loan Network 360-597-8283 — Tue, 13 Jan 2009 12:20:54 -0600

[For the most current issue click here]

Jan 13, 2009 Real Estate & Economic Report from Ed Bisquera of Mortgage Express metro markets of Portland, Oregon & Vancouver, Washington. Featuring news for homebuyers, homeowners, realtors and the general real estate market.

Daunting Numbers It was not like we were not warned. They were expected. Yet, the reality of the numbers were quite sobering. The employment statistics for December and 2008 were horrific to say the least. Over 2.5 million jobs were lost in 2008 and the loss in December alone was over 500,000. The job losses caused the unemployment rate to shoot up to 7.2%. Here is an interesting perspective. We lost more jobs in the past year than in any year since the end of World War II.

Daunting numbers indeed. But the interesting thing is that the markets barely blinked when they were released. The Dow shed almost 150 points, rates were down slightly and oil prices also fell, but moderately. How could the markets react so moderately in the face of such important news? Could it be that the bad news has been priced into the markets already? If this is the case, then rates, oil and the stock market are as low as they are going to go for the near term. Certainly the movements downward were significant during the latter half of 2008. For example, oil prices moved from $140 per barrel mid-year to $40 by the end of the year. That is quite a swing. It would not be surprising to see a period of consolidation where the markets bounce around before the next movement is signaled. The market may be waiting for any glimmer of hope that the worst is behind us and it may be until then that we witness any further fireworks.

The Markets. Mortgages continued their assault on record lows as they dropped for the tenth week in a row. Freddie Mac announced that for the week ending January 8, 30-year fixed rates averaged 5.01%, down from 5.10% the week before. The average for 15-year fixed fell to 4.62%. Adjustables were mixed with the average for one-year adjustables increasing to 4.95% and five-year adjustables falling to 5.49%. A year ago 30-year fixed rates were at 5.87%. "Rates for 30-year fixed mortgages fell for the tenth week to a fourth consecutive record low due in part to the Federal Reserve’s recent purchases of mortgage-backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae," said Frank Nothaft, Freddie Mac vice president and chief economist. "On November 25, 2008, the Federal Reserve announced that it planned to purchase up to $500 billion of these securities by the end of June of this year. For the sake of comparison, there were roughly $4.7 trillion of such securities backed by home mortgages available as of September 30, 2008. Since the end of October 2008, these rates have declined by almost 1 1/2 percentage points, or payment savings of about $184 a month for a $200,000 loan."

Current Indices For Adjustable Rate Mortgages

Updated January 9, 2009

	Daily Value	Monthly Value
	Jan 8	December
6-month Treasury Security	0.28%	0.26%
1-year Treasury Security	0.44%	0.49%
3-year Treasury Security	1.16%	1.07%
5-year Treasury Security	1.60%	1.52%
10-year Treasury Security	2.47%	2.42%
12-month LIBOR–WSJ		2.406% (Dec)
12-month MTA		1.823% (Dec)
11th District Cost of Funds		3.155% (Nov)
Prime Rate		3.25% (Dec)

Baby Boomers Will Drive Real Estate Market For Next 20 Years

A study of the Baby Boom generation by AARP and the National Association of Home Builders concluded that because the number of people age 65 and older will grow to 70 million by 2030, where boomers choose to live will have maximum impact on the housing industry. While boomers will reflect the patterns of earlier generations and mostly age in place, said Elinor Ginzler, senior vice president of AARP, “The sheer number of boomers will increase demand for a whole variety of home and community options. Key findings from the study include the facts that 79 percent would like to stay in their current homes as long as possible and 50 percent of those who plan to move want a home that is newer than their current home. Source: The Chicago Tribune

Endangered Neighborhoods Enjoy Respite With Low New Housing Starts

The pace of teardowns has slowed and preservationists are applauding the trend. About 75,000 homes a year were torn down across the country at the peak of the market. The National Trust has expanded its list of endangered neighborhoods to include 500 neighborhoods in 40 states. The demolitions have triggered bitter battles between preservationists and suburbanites seeking new homes in mature, urban neighborhoods. But with new housing starts at a 26-year low, teardowns are experiencing a lull. For instance, in Westport, Conn., teardown permits were down 33 percent in 2008 compared to the previous year. "The idea that you’re going to make a lot of money tearing down an old house to build a new one, that’s gone," says Morris Davis, a real estate economist at the University of Wisconsin in Madison who has advised the Federal Reserve on the teardown trend. "We’re advising communities to take advantage of this slowdown and use it as a cooling-off period," says Adrian Fine, a regional director for the National Trust for Historic Preservation in Washington. "It gives them a little more time to have a less heated and less controversial discussion to protect a specific neighborhood and balance that with the need for growth and development." Source: The Christian Science Monitor

==About Ed==

As part of my effort to share knowledge and keep you abreast of the latest news in real estate, finances and business in general, I offer this weekly and monthly newsletter update to you.

Please feel free to forward this or send anyone you know to my personal blog, at which this and past newsletters are available.

WA Lic # 510-LO-35270 OR ML #1952

Read the original here

Follow me on Facebook Twitter Activerain Blog LinkedIn YouTube Video Posts

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

THE BABY BOOMER MARKET: 1 In 4 Baby Boomers Plans To Move To New Home

Ed Bisquera | Loan Network 360-597-8283 — Mon, 12 Jan 2009 14:29:23 -0600

One In Four Boomers Plans Move to New Home (originally posted on my blog)

One in four Baby Boom generation households (26%) expects a future move from their current home, with most reporting they will seek a single-level home that is more comfortable or convenient, according to a new survey conducted for AARP by Opinion Research Corporation.

Echoing past surveys, the research found that most Boomers (79%) say they would like to stay in their current home for as long as possible, AARP said. Less than 10% would like to stay in their current home but don’t think they will be able to do so.

Many of those who expect to move said they will be looking for a better house, a better climate or a home that is closer to family and friends. More than half of those Boomers (age 45-64) planning to move expect to look for a home that is all on one level (59%). About half said they will look for a newer home (50%) or a smaller home (49%).

One third of Boomers do not foresee any challenges with their current home that would cause them to consider moving. However, one-fourth say that stairs may be a concern. Others cite landscaping and yard challenges, bathroom issues, narrow doors and hallways and lighting problems.

Older boomers are significantly more likely than younger boomers to think that they will move into a single level home (68% vs. 54% of those planning to move), but age is not the only factor that affects expectations, the survey found. Boomer men are more likely than women to believe they will move into a newer home (61% vs. 42%) or move into a home in a warmer or better climate (41% vs. 25%). Boomer women are more likely than men to think they will move into a smaller home (54% v. 41%).

“While boomers will reflect the patterns of earlier generations and mostly age in place, the sheer number of Boomers will increase demand for a whole variety of home and community options,” said said Elinor Ginzler, SVP of AARP.

According to AARP, the number of people age 65+ is expected grow to 70 million by 2030.

About the survey: The poll was conducted August 29 - Sept. 8, 2008 by Opinion Research Corporation. Interviews were conducted with 1,273 respondents age 45 to 64 using a stratified, random-digit dialing sample of US telephone households. All responses were subsequently weighted by age, gender, ethnicity, and region to be nationally representative of the US population 18+. The poll was released last year to coincide with the announcement of the 2008 Livable Communities Awards from AARP and the National Association of Home Builders (NAHB).

One In Four Boomers Plans Move to New Home

Follow me on

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

Twitter Tips: Great post for gaining followers on Twitter by Guy Kawasaki

Ed Bisquera | Loan Network 360-597-8283 — Fri, 09 Jan 2009 13:50:53 -0600

So I wanted to post this snippet of a blog posting Twitted to me from Mike Stelzner @Mike_Stelzner and I thought it was well written by Guy.

10 Tips he offered:

Tip 1: Follow the "smores (social media whores).

Tip 2: Send @ messages to the smores.

Tip 3: Create an effective avatar

Tip 4: Follow everyone who follows you.

Tip 5: Always be linking.

Tip 6: Establish yourself as a subject expert.

Tip 7: Incorporate pictures and other media.

Tip 8: Use the right tools.

Tip 9: Repeat your tweets.

Tip 10: Ask people to follow.

He goes into detail on each tip below in his post. Great reading and informative. Please let me know what you think!

Ed Bisquera

"Looking for Mr. Goodtweet: How to Pick Up Followers on Twitter

At 10:15 pm I discovered that I had not brought a Macbook power supply on the trip. I was in a hotel on Coronado Island, and early the next morning I was flying to an aircraft carrier off San Diego for an overnight visit. I doubted that the carrier had Macbook power supplies laying around, so I was in trouble. I posted a message to Twitter that I was in this predicament, and within ten minutes, five people offered to bring me a power supply. I took one of them up on the offer, and he delivered it to me within an hour."

Read the rest here CLICK FOR BLOG POST

Follow me on Twitter for more interesting reads, tweets and funny avatar pictures. :-)

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

Vancouver Washington: Charming Split Level at $169,900

Ed Bisquera | Loan Network 360-597-8283 — Wed, 07 Jan 2009 13:06:24 -0600

(Use of ePropertySites nabs 2 leads in 10 minutes!)

Below is an example of a single property website currently active and was posted on a Wed of last week (12/31/08). I immediately fielded 2 calls from the listing, as it was one-clicked posted to Craigslist (a feature of using my service) and I also captured their phone number, because the potential buyer used the FREE mobile text for more info feature. (If you've ever wanted to use mobile text for more info, a call-capture tool to get prospects to txt with their phone, you get this valuable feature included in my free ePropertySites account. Call or email me to get your own account!)

What also helps with SEO and "Google juice" is a video uploaded to YouTube includes in the description the http is linked to the property's web address and within the same day it was indexed on Google for a few regional keyword phrases. It should help with search results for the Realtor and I and I'll be posting our results over the next 3 weeks using Video SEO Marketing techniques.

Does single property websites from ePropertySites (or like vFlyer or Postlets) always help in online marketing and search engine ranking? I think it does, because it can't hurt to have AS many "virtual sign posts" pointing to a home for sale, right? However a buyer finds it, from a posting on Craigslist, to a link on your Facebook or Twitter feed, or from a friend or whatever, I think helps to market a property AND you.

I predict (and I'm sure people will comment both ways about this) that Realtors and Mortgage professionals that embrace social media marketing, the use of video SEO strategies in marketing and using video in general, will fare better than old school techniques. Not that old school marketing will die by the wayside, but with over 80% of people searching on the internet when they go to buy a home and over 75% of those looking at website postings of homes for sale (ie a single property web page or ad listing) click on the virtual tour/video link the most. There is analytical data that shows people will click on the virtual tour and/or video link 75% or more of the time, over any other link.

So your photos better be good (I think the photos below in this property listing are pretty ok) and your video better be good, to help showcase and market the property. What do you think about the 2009 predictions of using video in online marketing and the continued debate/talk of using video in marketing home properties?

Ed Bisquera

NOTE: The listing should have blue bars behind some of the text, but for some reason it's not showing through Activerain. We're working on why this is coming out like that. You can visit the online property website by clicking directly here

4411 NE 14th Avenue
Vancouver, WA 98663
Charming split level

Jared Lippelgoos - JLP Group

Cell:	360-852-6513
Office:	360-693-3336
Website:	Visit Website

Price	:	$169,900
Bedrooms	:	4
Bathrooms	:	3
Square Foot	:	2,248
Lot Size	:	7
County	:	Clark
Property Type	:	Detached
Year Built	:	1978
MLS Number	:	8080744

click for more pictures

Property Description

Split level, 4 bedroom, 3 bathrooms, home on large lot, Finished basement/separate entrance, 22x14 utility room for storage etc. 2 fireplaces, lower with wood stove insert. Large room, with lots of windows to let in the light! Sliding glass doors from the dining room lead to a large deck with a view of the fully fenced large backyard.
For more information call: 1-800-485-4513 Ext. 1063

Features List

Heat pump	Ceiling fan	Tile floors
Large deck	Fenced	Tool Shed
Built-in microwave

Equal Housing Opportunity.

Keller Williams Realty : : 360-852-6513

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

How Housing Prices Performing In Long Run? in 01/06/09 Real Estate, Mortgage, Market & Economic Report

Ed Bisquera | Loan Network 360-597-8283 — Tue, 06 Jan 2009 12:05:32 -0600

Below is today's Real Estate Report, Economic Commentary and Mortgage Rate Review, courtesy of blog from Ed Bisquera, Mortgage Consultant to Oregon & Washington (Vancouver, Washington & Portland, Oregon metro areas).

January 6, 2009

The Big Question - How Are Housing Prices Performing?

In the past week we gave some perspective regarding how housing prices have performed in the long run. Despite the recent precipitous drop in prices, housing as an investment performs strongly when you look at the big picture. On the other hand, we can’t ignore the fact that prices have fallen significantly in the past year and the overall economy is not likely to recover until home prices stop dropping. So, the big question is, when will home prices stop dropping? With so many foreclosures on the horizon, there may seem to be no end in sight to the current cycle. Once again, let’s add some perspective.

Remember, a few years ago when it seemed that home prices would not stop rising? Everyone was outbidding each other to get the next property. Of course we knew that home prices could not skyrocket forever because people would not be able to afford to purchase. The same applies here. Home prices can’t just keep dropping. As prices become lower, affordability will go up and more Americans will purchase real estate. Recent record low rates will help move that date forward as well. Even more important, as buyers come back to the market and prices stop falling, lenders will be more confident in lending in a stable price environment. This is why price stability is so important to our overall financial recovery. When will this happen? Watch existing home sale statistics as we ring in the New Year, as they will be the most important indicator of whether buyers are returning to the game.

Weekly Interest Rate Overview: The Markets.

Mortgages continued their assault on record lows as they dropped for the ninth week in a row, although the rate of decline has slowed in the past few weeks. Freddie Mac announced that for the week ending December 31, 30-year fixed rates averaged 5.10%, down from 5.14% the week before. The average for 15-year fixed fell to 4.83%. Adjustables were mixed with the average for one-year adjustables decreasing to 4.85% and five-year adjustables rising to 5.57%. A year ago 30-year fixed rates were at 6.77%. "Rates for 30-year fixed-rate mortgages fell for the ninth straight week and represented a third consecutive all time record low since Freddie Mac’s survey began in April 1971," said Frank Nothaft, Freddie Mac vice president and chief economist. "Since the end of October of this year, these rates have declined by about 1-1/3 percentage points, or a reduction of approximately $173 a month for a $200,000 loan. As a result, the number of refi applications for conventional mortgages jumped over 500 percent between the weeks ending on October 31st and December 26th. Lower rates and falling house prices are also making homeownership more affordable to potential homebuyers. For instance, house prices fell 18 percent over the 12-month period ending in October, according to the S&P/Case-Shiller® 20-city composite index. Every city posted a second consecutive month of decline in October. From its peak set in July 2006, the composite index is down 23.4 percent."

Current Indices For Adjustable Rate Mortgages
Updated January 2, 2009

	Daily Value	Monthly Value
	Dec 31	November
6-month Treasury Security	0.27%	0.74%
1-year Treasury Security	0.37%	1.07%
3-year Treasury Security	1.00%	1.51%
5-year Treasury Security	1.55%	2.29%
10-year Treasury Security	2.25%	3.53%
12-month LIBOR–WSJ		3.844% (Nov)
12-month MTA		2.053% (Nov)
11th District Cost of Funds		3.125% (Oct)
Prime Rate		3.25% (Dec)

$7500 Tax Credit Still A Great Reason For First Time Homebuyers

First-time homebuyers in 2008 can take an income-tax credit on their purchase, thanks to passage in Congress earlier last year of the first-time home buyer tax credit. The definition of first-time homebuyer is generous. To get the credit, the homebuyer cannot have owned a home in the previous three years. The home must be a principal residence and purchased between April 9, 2008 and July 1, 2009. The credit is equal to 10 percent of the purchase price, up to $7,500. Single taxpayers with modified adjusted gross income up to $75,000 and couples with MAGI up to $150,000 will qualify for full credit. Singles with MAGI up to $95,000 and couples with MAGI up to $170,000 will get a reduced amount. Those with higher incomes don’t qualify. If the amount of tax a homebuyer owes is less than the amount of the credit, they get to keep the difference in the form of an IRS refund. The homebuyer must begin to repay the credit in two years in increments of about $500 a year over a 15-year period for those who received the full credit Homebuyers who sell their home before the credit is repaid must pay off the loan with any profits. If they sell the home at a loss, the loan is forgiven. Source: Chicago Tribune

USDA Offers 102% Financing For Many HomeBuyers Across The US In Every County In Every State

More buyers in search of home loans are turning to an obscure program operated by the United States Department of Agriculture. The program allows no-money-down purchases. In fact, including a mortgage insurance policy, a borrower can seek up to 102 percent. To be eligible, buyers can’t have income that exceeds 115 percent of the median county income. The loans are restricted to low-density areas, generally towns of no more than 25,000 residents. The loans are made by private lenders, then insured by the government. Some home builders are promoting the use of this program. "It’s one of our main tools right now," says John Bargnesi, vice president for sales of Scottsdale, Ariz., home builder Meritage Homes. Source: The Wall Street Journal

Demand For Commercial Real Estate Down Due To Shrinking Employment

Shrinking employment is reducing the demand for commercial real estate, and the Urban Land Institute, an industry trade group, is predicting that the bottom of the commercial market is still six to 12 months away. "There is a psychological component to all this," said Robert Gardner, managing director of real estate consulting firm Robert Charles Lesser & Co. "Exuberance on the upside is being compounded on the downside and markets will overshoot in the other direction." Financing is almost impossible for developers to obtain in many parts of the country, even for modest projects. “The mega deal is done” at least for now, Gardner said. "Usually some markets perform better than others," said Delores Conway, director of the Casden Economic Forecast at University of Southern California, "but demand is weak everywhere." Source: Los Angeles Times

Originally posted at my blog: http://blog.pdxloan.com

Follow me on
Facebook
Twitter
Activerain Blog
LinkedIn
YouTube Video Posts

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

Video - Richard Branson answers questions about being an entrepreneur

Ed Bisquera | Loan Network 360-597-8283 — Sun, 04 Jan 2009 11:49:58 -0600

This is a video answering questions from his blog. I came across this video on his blog and saw that he had the book "Business Stripped Bare: Adventures of a Global Entrepreneur" out, so I decided to pick it up.

I just starting reading it, but I do know a little about him, his success and struggles with building Virgin, etc. I also had the pleasure and honor of meeting him in Seattle twice, while at a CEO summit sponsored by Bill Gates and Microsoft.

While I was just the hired entertainment, I had the fortune of being "stuck" aboard the luxury boat to play piano on the ride to Gates' lakefront mansion and I chatted for a few minutes with Branson. He's got to be the nicest and most down to earth billionaire I've ever met! (Okay, I've not met many, but Sir Richard was genuinely nice to talk with and was humbly easy to access.)

I look forward to finishing this book in the coming weeks, as part of my read-a-book-per-week goal in 2009. Do you have any favorite books to suggest reading? Or do you have a Amazon book list, like one that you can create at LinkedIn? Connect with me or suggest any books you like by commenting below. Thanks! :-)

Originally at my blog post here

== About me ==
Follow me on
Facebook
Twitter
Activerain Blog
LinkedIn
YouTube Video Posts

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com

Microblogging (ie Twitter) for business - A Video Interview

Ed Bisquera | Loan Network 360-597-8283 — Fri, 02 Jan 2009 18:40:33 -0600

I find that many are embracing Twitter and other Social Media Marketing options. From all the posts I read on Activerain and other outside blogs, I come to agree that "microblogging" like using Twitter may seem small and a waste of time, but I think if done correctly can be useful.

Another great post is from Chris Brogan that talks about goals for 2009 and social media can be the delivery method for those goals you create. On to the video below...enjoy! Ed

Microblogging’s name may include a term meaning “small,” but it’s a rather big deal. Laura Fitton, the CEO of Pistachio Consulting, helps companies understand how they should deal with the subject in both external and internal senses. In this interview with Abby Johnson, Fitton also touches on Twitter and what she calls “citizen observationism.”

I comment on my other blog about this and you can watch the video here:

Video Blog or watch below.

More WebProNews Videos

== About Ed Bisquera ==
Follow me on
Facebook Twitter Activerain Blog LinkedIn YouTube Video Posts

Ed Bisquera, Mortgage Matchmaker & Social Media Instructor

Follow me on Twitter @edbisquera
Find me on Facebook
Connect with me on LinkedIn

Free online workshops about Social Media Marketing & Integration at
http://SocialMediaMarketing101.com