Taos Real Estate Mortgage Report

Posted by Jim Kimmons, Broker/Owner • April 21, 2009 • Printer-friendly

	*TLT is Taos’ only ‘certified’ mortgage broker by the National and NM Association of Mortgage Brokers.* *Rates are GREAT!* 30 year 4. 75% 15 year 4.375% 5/1 4. 375% FHA 5.00% Prime 3.25% As you can see the rates are just a smidge better than last week. With business having been so slow in the past year or so, lenders are finding themselves caught short with the downsizing of staff. Now that we have a refinance boom lenders are hiring new underwriters to help handle the work load. I don’t envy the job of the underwriter in today’s every changing market and hope they are well paid for their jobs. This past Friday I read through a lenders 6 page updated summary for the new Freddie Mac (LP) guideline changes and today new additional changes have been posted. It is no wonder turn times for loans in the system is getting further and further out. Last week I reported 10 day turn time on refinances but is now 15-20 days. 30 day locks are not being offered by lenders unless your loan has already been in the system and approved by an underwriter. This leaves us in the mortgage industry in a quandary with regards to rates and when to lock. In the good old days we could submit loans with a 7 day or less turn time and not worry about assuring our borrowers rates. Today, with turn time out so far, the safest best for your client is to be certain they are locked the day the rate is quoted. If they have not made a definite decision with regards to their purchases AND they want a competitive rate, you can be sure we will urge them to lock and sign ASAP! *FHA News* With rates so low it is a good time to take advantage of FHA’s 203 K program for primary residences! With the 203(k) loan program, borrowers can purchase or refinance their home and include all the costs necessary in order to rehabilitate, improve and/or make repairs all within a single loan. This program can also help you to expand homeownership opportunities while revitalizing the communities you serve simultaneously. Additionally, with the 203(k) program, you can: – Increase loan origination volume – Expand your market reach – Help borrowers find affordable financing in order to obtain the dream of home ownership – *USDA Guaranteed Rural Housing (GRH)* USDA Guaranteed Rural Housing (GRH) provides guaranteed loans for new or existing single family homes in rural areas. · Rural areas include towns, cities or places with populations of 10,000 or less, and towns and cities not part of an MSA with populations between 10,000 and below 20,000 (25,000 if rural in character, not part of an MSA and designated as rural prior to 10-1-90). · Only 30 year fixed for Primary residence is allowed. Rates are based on FMHA pricing. *Appraisal News* This week a large nationwide conference for the HVCC changes will take place and we will be participating. I will have more news about HVCC at the end of the week for everyone. Lenders are setting their own rules about what they will or will not accept. I have one lender that will accept any appraisal that is dated prior to May 1^st whether or not the file is in their pipeline and another lender who will not accept any appraisal that hasn’t been submitted to them by May 1^st. Go figure….it’s no wonder we are becoming the queens and/or kings of change! *Recent News* NEW YORK (CNNMoney.com) -- U.S. stocks were poised for a lower start Monday, as investors turned their attention to a slew of merger and earnings news. At 8:39 a.m. ET, Dow Jones industrial average, Standard & Poor's 500 and Nasdaq 100 futures were all lower. Futures measure current index values against perceived future performance and give an indication of how markets may open when trading begins in New York. Stocks rallied Friday marking Wall Street's sixth straight week of gains. But the rally could be tested this week by jitters about quarterly results. "Markets have been up six weeks in a row and people are a little nervous coming into a big earnings week," said Todd Leone, head trader at Cowen & Co. " Earnings: With an estimated 10% of the S&P 500 having reported results so far, profits are on track to have shrunk 37.4% from a year ago, according to the latest from Thomson Reuters. Before the bell, Bank of America reported earnings of 44 cents a share, considerably better than analysts expected. Drug maker Eli Lilly's earnings also beat estimates. Deals: Tech giant Oracle announced it will buy Sun Microsystems (JAVA)in a deal worth $7.4 billion. PepsiCo offered $6 billion to buy out shareholders of its two largest bottlers, Pepsi Bottling Group and Pepsi Americas. The soft drink maker also announced better-than-expected quarterly earnings. World markets: Stocks in Asia managed to end mostly in positive territory. Japan's Nikkei edged higher and the Hang Seng in Hong Kong rose nearly 1%. European markets, meanwhile, tumbled in midday trading. Oil and money: Oil prices tumbled $2.72 a barrel to $47.61. The dollar was higher versus the Euro and the British pound, but lower against the yen. *Summary* With rates this low it is a good time to refinance and/ or cash out SOME equity to payoff higher interest debts, we can also help you obtain a home equity line of credit. Keep Taos Lending Team in mind when looking at properties that require “unique” financing options for your borrower. You are welcome to contact us at 575.751.4641 Steve Johnson steve@taoslendingteam.com Lisa Levy lisa@taoslendingteam.com Jean Trujillo jean@taoslendingteam.com Elisabeth Guillemin elisabeth@taoslendingteam.com Thank you for your time and consideration. Sincerely, Elisabeth Guillemin