placentia real estate: Effective December 13th, 2008 Conforming Loans Will Require Larger Down Payments.... - 10/21/08 04:05 AM
Thank you for choosing Premier Plus Financial Services.  We look forward to helping you In an effort to limit risky borrower behavior, Fannie Mae announced a new round of mortgage guideline changes last week. 
Unlike previous its previous 20-plus updates that raised income requirements and minimum credit scores (among other changes), Fannie's latestguideline tweaks focus on the value of its underlying mortgage assets -- home equity.
Effective December 13, 2008, Fannie Mae will require larger equity positions on some of its insured purchases and refinances. 
A few of the updates include:
·         Limiting primary residence, cash out refinances to 85% loan-to-value
·         Requiring 10% … (1 comments)

placentia real estate: Looking Back and Looking Ahead.... - 10/20/08 05:23 PM
Last week, the Dow Jones Industrial Average recorded both its largest one-day point gain andsecond-largest one-day point loss in history. 
Mortgage markets got whipsawed, too.
From day to day, huge rate swings made mortgage rate shopping difficult.  It wasn't uncommon for lenders to change pricing 3 times per day.
When the week closed, though, rates were lower than at Market Open Monday, marking the first week of improvement in mortgage rates since early-September.
Last week's constant mortgage rate movement had several causes:
•·         Retail Sales data was weaker than expected
•·         The Federal Reserve report showing a slowdown in all 12 regions
•·         New … (2 comments)

placentia real estate: The Rising Cost of Down Payments.... - 10/17/08 08:27 AM
Private Mortgage Insurance (PMI) is a mortgage lender's insurance policy against highly-leveraged homeowners.  It's typically required when homeowner equity is less than 20 percent at the time of closing.
With PMI defaults up 40 percent over last year, private mortgage insurers are taking big losses.
They're also taking outsized steps to prevent additional claims going forward and that is bad news for low-equity homeowners and home buyers.
The first PMI change new, higher insurance rates.
Like home insurers that adjust premiums after a worse-than-expected storm season, PMI insurers are raising mortgage insurance rates for all homeowners, regardless of credit history.  The higher premiums are meant … (3 comments)

placentia real estate: Nice Crystal Ball..... - 10/16/08 04:03 AM
As the stock market dips then jumps then dips again, it's important to remember that markets are unpredictable and nobody knows what will happen tomorrow.
Unfortunately, that doesn't stop the analysts from trying.
An obvious example comes from May of this year.   As the price of oil crossed $120 per barrel on its way to an all-time high of $147, a Goldman Sachs analyst was quoted as saying that $200 oil was "likely". 
It seemed like a logical conclusion at the time.
Today, though, just five months after the prediction, the analyst's "likely" scenario looks downright laughable.  Oil is off by more than 40 percent … (4 comments)

placentia real estate: Look Out Placentia ARM Homeowners..... - 10/15/08 04:01 AM
For many Placentia homeowners with soon-to-adjust adjustable rate mortgages, the recent banking turmoil worldwide may lead to budgetary pain.
This is because most conforming ARMs made since 2003 are based on a borrowing cost called LIBOR and LIBOR is up an uncharacteristic 2 percent since September.
LIBOR stands for London Interbank Offered Rate and is the rate at which banks lend money to each other. 
Historically, LIBOR has tracked the U.S. treasury market,plus a half-percent increase.  This suggests that banks are only slightly less likely to default versus the U.S. government.
Today, that spread is close to 4.5 percent.
Since Lehman Brothers failed … (0 comments)

 

Rick Cardenas

Placentia, CA

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Envoy Mortgage

Address: Placentia, CA, 92870

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