Weekly Rates +Important Mortgage Disclosure Improvement Act

Mortgage bond prices rallied Friday pushing mortgage interest rates lower. Bond friendly Core PCE inflation data came in lower than expected. The Fed's most recent estimates call for an increase in this figure by the end of the year. The fact that the data showed lower inflation helped mortgage bonds rally. Consumer confidence came in at a weaker than expected 46.6 mark. Analysts were looking for a reading of 48.7. The Treasury auctions were mixed. The 2 and 5 year note auctions received poor foreign demand while the 7 year auction showed strong foreign demand. The employment report will be the most important release this coming week. With so many data releases expect the market to be very volatile.

As you may be aware, the Mortgage Disclosure Improvement Act (MDIA) became effective July 30, 2009. Essentially, the Act further regulates fees that can be charged to a borrower along with some "waiting period" timelines associated with the GFE/TIL disclosures. Because NOVA Home Loans is the direct lender in nearly all of our transactions any changes made in the loan process come directly to us and can be made immediately and efficiently. Because of this, MDIA will have little affect on the closing times of NOVA funded loans. However, it appears that if you choose to send your loans to a pure broker, all changes must then be forwarded to their chosen lender which may cause delays to the closing deadlines.

Below are some of the important pieces of MDIA that I thought may interest you.

- The new MDIA rules applies to both purchase and refinance loans.
- A lender must provide a borrower with an "early" Good Faith Estimate / TIL within three business days of receiving the borrower's loan application.
- A lender cannot collect upfront fees from the borrower until the borrower has received the "early" disclosures in person or, if mailed, three business days after the early disclosures are mailed.
- A lender must wait seven business days after providing the early disclosures before the borrower can sign closing documents.
- If the final Annual Percentage Rate (APR) on the closing documents varies more than 0.125% (up or down) from the initial APR on the "early" disclosures, the lender must provide the borrower with a corrected disclosure and wait three business days before the borrower can sign the closing documents. Clarification - the borrower cannot sign closing documents until three business days after the borrower receives the corrected disclosure in person. If the corrected disclosure is mailed, the borrower is deemed to have received it three business days after it is placed in the mail.

For these rules, a "business day" is defined as all calendar days except Sundays and legal public holidays as specified.

NOVA's policy will be to provide the borrower with a "re-disclosed" GFE & TIL well in advance of the borrower signing in an effort to prevent delays in closing. Changes that occur at the closing table will need to be avoided at all costs. Early commincation of "accurate" fees and charges will be critical to insuring a smooth, on-time closing transaction. Please note: if you want to give a credit to the buyer or seller, you must do it a week before closing so we can prepare updated TIL/GFE's in order to be in compliance with MDIA.

Rates for July 31st, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 5.00%, 5.113%APR
30 Year Fixed Interest Only 5.75%, 5.863%APR
15 Year Fixed Conventional 4.375%, 4.448%APR
7/1 LIBOR ARM Conventional 4.25%, 4.363%APR
5/1 LIBOR ARM Conventional 3.75%, 3.863%APR
5/1 LIBOR ARM Interest Only 4.875%, 3.988%APR
30 Year FHA/VA 5.375 %, 5.627%APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851%APR
15 Year Fixed (to $600K) 5.625%, 5.726%APR
5/1 Treasury ARM 4.875%, 4.976%APR
7/1 Treasury ARM 5.125%, 5.226%APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
3/1 LIBOR ARM (Conforming) 6.125%, 6.507%APR
5/1 LIBOR ARM (Jumbo) 7.25%, 7.632%APR
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.Prior to modification, a free one-time float down is available. (30 Year Amortization)
For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

Weekly Rates + Market Update

Mortgage Bonds are trying to stabilize after yesterday's sharp losses, which came in response to the Treasury announcing that it will be auctioning off a sizable $115 Billion in Notes next week. This in addition to $90 Billion in T-Bills that is usually auctioned off on a weekly basis. That's a lot of paper. Recent past has shown that the announcement of the Treasury auctions has weighed on the entire Bond market and yesterday was no different. Also adding pressure to Bonds was an explosive move higher in Stocks, with the Dow closing above 9,000 for the first time since Jan 6th. But Stocks failed to break resistance around 9090 on the Dow, which represents the previous intra-day high from that same day.

Consumer Sentiment was reported at 66, meeting expectations but continuing a modest trend of improvement. We feel this probably has a bit more to do with Stock prices trading higher and less to do with actual economic improvement. The Stock market often influences consumer psychology, especially when it comes to buying a home. And the nearly 50% rise since fixing mark to market in early March has helped people feel a little better about their finances.

On Wednesday, our friend and the chief economist of Freddie Mac, Frank Nothaft said that "recent housing data suggests that the positive signs indicate that the worst may be behind us". He also went on to say that "housing affordability right now is the highest it’s been in many years".

June Homes Sales Rise

SHORT SALE VS FORECLOSURE
WHAT IS IT AND HOW DOES IT AFFECT YOUR CREDIT?

What does “short sale” mean? “A short sale in real estate occurs when the outstanding obligations (loans) a property are greater than what the property can be sold for.”
In this time of depreciating markets and option-arms coming due, we will see more and more borrowers trying to negotiate short sales as opposed to going into foreclosure. In most cases the borrower will be behind on payments and about to go into foreclosure, however this will not always be the case. Some short sales are negotiated simply because a borrower knows they are upside down on their mortgage but has not reached the point where they have late payments. For example, if the borrower’s loan is an option arm and they have been making minimum payments, the balance may have increased to $263000 when the original loan amount was $250,000. At the same time, the home only appraises for the $250,000 or possibly even less. Because the option-arm period is up, the borrower’s mortgage payments will increase and they are unable to make the higher payment. There is no equity in the property and they cannot sell the home to cover the balance of the loan. At this point they can either try to negotiate a short sale with the lender or go into foreclosure.

If the lender agrees to a short sale, they are buying back the loan for less then what they are owed. This is not something a lender has to do, but it is an option for them. Why would they consider this? The real cost for the lender in a foreclosure action is that they have to carry the loan until they can resell the house. They have to pay the taxes, insurance, closing costs and marketing costs. This will take time and the cost of carrying the loan can become quite substantial. In some cases it will be more beneficial for them financially to take the short sale.

How does it affect credit?

Typically the loan will show up on a credit report as “settled for less then the full balance”. This will have a negative impact on the borrowers score however it will be less then if it shows as “foreclosure”. How much it will actually affect the score will depend on the rest of the borrowers credit history. It is always best to have an attorney negotiate a short sale with a lender and at the same time have them negotiate how it will appear on the credit report. Some lenders will agree to show the loan as “paid with no late payments” (providing the borrower hasn’t made any) or they may show it as “paid was 30” if there have been some late payments. This would be optimal.

A short sale can also have a negative affect on a borrowers credit if the lender issues a deficiency judgment. A lender may take this route even if they show the actual mortgage on the credit report as paid as agreed. When they take the short sale there is still a difference between the actual mortgage balance and the amount of the short sale. The Lender can then issue what is called a deficiency judgment against the borrower and this will show on a credit report just as any other judgment would. The attorney should attempt to get the lender to accept “payment in full without pursuit of any deficiency judgment.” Sometimes the lender will put the borrower on a payment plan for the deficiency without issuing a judgment. Again, this would be optimal. The one instance where a lender will not consider a short sale is if the borrower is in bankruptcy. Lenders consider a short sale payoff as a collection activity and collection activities are prohibited once a person has filed bankruptcy.

For any pre-qualifications or 2nd opinions on loan scenario's, please contact me at 480-626-2202.


Rates for July 24th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 5.25%, 5.383%APR
30 Year Fixed Interest Only 6.00%, 6.113%APR
15 Year Fixed Conventional 4.625%, 4.738%APR
7/1 LIBOR ARM Conventional 4.375%, 4.476%APR
5/1 LIBOR ARM Conventional 3.875%, 3.988%APR
5/1 LIBOR ARM Interest Only 4.00%, 4.124%APR
30 Year FHA/VA 5.25%, 5.502%APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851%APR
15 Year Fixed (to $600K) 5.625%, 5.726%APR
5/1 Treasury ARM 4.875%, 4.976%APR
7/1 Treasury ARM 5.125%, 5.226%APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
3/1 LIBOR ARM (Conforming) 6.125%, 6.507%APR
5/1 LIBOR ARM (Jumbo) 7.25%, 7.632%APR
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.Prior to modification, a free one-time float down is available. (30 Year Amortization)
For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

New Law Limiting the Protection of Arizona Anti-Deficiency Statutes

By: Aaron M. Green and Christopher A. Combs

On July 10, 2009, the Governor of Arizona signed into law (effective September 30, 2009) a significant amendment to Arizona's anti-deficiency statutes. This new law decreases the protection to Arizona homeowners after they lose their home to foreclosure. The anti-deficiency statutes had not been amended since 1990.

The Arizona anti-deficiency statutes (primarily A.R.S. §33-814(G)) generally protect most homeowners from being sued after foreclosure by their lender for any unpaid balance of the loan, i.e., deficiency, if the home was "utilized" as a "dwelling." The Arizona courts have ruled that even vacation homes rented out by investors for only a few weeks of the year were being "utilized" as a "dwelling."

The new law states that homes must be utilized as a dwelling "by the trustor [borrower] under the deed of trust for at least six consecutive months...." (Emphasis added.) Therefore, occupancy of the home for at least six consecutive months prior to the foreclosure is now required.

Does the six-month occupancy requirement only protect owner-occupied homes, or do investors with tenants who meet the six-month occupancy requirement have the same protection? Our opinion at Combs Law Group is that investment homes will continue to have the same protection as owner-occupied homes under the anti-deficiency statutes.

Does the six-month occupancy requirement apply only to foreclosure of loans entered into after September 30, 2009, or to all foreclosures that occur after that date? Our opinion at Combs Law Group is that the six-month occupancy requirement applies to all foreclosures after September 30, 2009, and that the borrower will have to prove at that time the six-month occupancy requirement even though the loan documents may have been executed years earlier.

A copy of the new law can be found at www.combslawgroup.com.

If you would like more information regarding landlord/tenant, short sales, loan modifications, bankruptcy or other real estate related issues, please call our office at 602.957.9810 and arrange for an initial consultation with one of our attorneys.


Chris Combs

Certified Real Estate Specialist
Combs Law Group, P.C.

Weekly Update/Rates (They are creeping up quickly) + $8,000 Tax Credit Link

Please make note that Nova Home Loans has raised our minimum FICO score for FHA loans to 600. Secondly, news came down the pipe last in regards to the use of the $8,000 tax credit. FHA announced this morning that first time home buyers can apply the $8,000 tax credit towards closing costs on FHA loans. Please follow the link below for more details. I will keep you posted on further developments on gaining access to these funds prior to closing.
http://www.hud.gov/news/release.cfm?content=pr09-072.cfm

Mortgage bond prices had another terrible week pushing mortgage interest rates considerably higher. Personal income, outlays, construction spending, ISM Index, and payrolls data came in stronger than expected. This did little to help the already shattered bond market. Oil prices continued to escalate hitting over $70/barrel. The Fed attempts to keep rates in check were not very effective as selling pressure continued. Bernanke tried to calm the markets by reiterating forecasts of tame inflation but his words fell on deaf ears among bond traders.

Today was a prime example of the divergence between the unemployment rate and payrolls figure along with the risk of floating into important data. Unemployment came in at 9.4%, higher than the expected 9.2%, while non-farm payrolls fell 345,000, not as much as the expected 520,000 decline. Mortgage bond prices fell and rates spiked higher.

Energy prices have risen considerably stoking inflation fears amid record debt levels. As a result the low mortgage interest rates that everyone considered a given have quickly gone away. The Fed continues to purchase mortgage bonds in an effort to keep mortgage interest rates low but they face a daunting task as the selling pressure continues. The Fed still has over $700b marked for purchasing additional mortgage bonds. The question remains whether that will be enough to help rates turn lower. So far it appears additional measures are needed.

Please give me a call if you have any financial questions or if you need a second opinion on a loan scenario. If you are calling after hours or on weekends, please use call me at 480-626-2202.


Rates for June 4, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 5.375%, 5.488%APR
30 Year Fixed Interest Only 6.125%, 6.238%APR
15 Year Fixed Conventional 4.875%, 4.988%APR
7/1 LIBOR ARM Conventional 5.00%, 5.134%APR
5/1 LIBOR ARM Conventional 3.875%, 3.988%APR
5/1 LIBOR ARM Interest Only 4.375%, 4.488%APR
30 Year FHA/VA 5.50%, 5.752%APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851%APR
15 Year Fixed (to $600K) 5.625%, 5.726%APR
5/1 Treasury ARM 4.75%, 4.851%APR
7/1 Treasury ARM 5.00%, 5.101%APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
3/1 LIBOR ARM (Conforming) 5.75%, 6.132%APR
5/1 LIBOR ARM (Jumbo) 6.875%, 7.227%APR
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.Prior to modification, a free one-time float down is available. (30 Year Amortization)
For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

Weekly Update/Rates + FHA Min FICO Now 600 + Breaking News on Tax Credit

Please make note that Nova Home Loans has raised our minimum FICO score for FHA loans to 600. Secondly, news came down the pipe today in regards to the use of the $8,000 tax credit. FHA announced this morning that first time home buyers can apply the $8,000 tax credit towards closing costs on FHA loans. Please make note this CANNOT be used towards the down payment. More details to follow on how borrowers can gain access to the credit before closing, stay tuned.

Mortgage bond prices had the worst week in a very long time falling precipitously pushing mortgage interest rates considerably higher. Stronger than expected consumer sentiment data started the bond market off on the wrong foot. Debt supply concerns permeated throughout the financial markets with the US Treasury auctioning $100 billion of notes. Escalating oil prices added fuel to the fire. Fortunately it appeared the Fed finally stepped in to stop the bleeding towards the end of the week helping bonds recover a small portion of the large losses from earlier in the week.

Please give me a call if you have any financial questions or if you need a second opinion on a loan scenario. If you are calling after hours or on weekends, please use call me at 480-626-2202.

Rates for May 29th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 5.00%, 5.113%APR
30 Year Fixed Interest Only 5.875%, 5.988%APR
15 Year Fixed Conventional 4.375%, 4.488%APR
7/1 LIBOR ARM Conventional 4.50%, 4.613%APR
5/1 LIBOR ARM Conventional 3.875%, 3.988%APR
5/1 LIBOR ARM Interest Only 4.00%, 4.105%APR
30 Year FHA/VA 5.25%, 5.502%APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851%APR
15 Year Fixed (to $600K) 5.625%, 5.726%APR
5/1 Treasury ARM 4.75%, 4.851%APR
7/1 Treasury ARM 5.00%, 5.101%APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
3/1 LIBOR ARM (Conforming) 5.625%, 6.007%APR
5/1 LIBOR ARM (Jumbo) 6.625%, 6.977%APR
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.Prior to modification, a free one-time float down is available. (30 Year Amortization)
For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

Rates + Market Update + Tax Credit as Down Payment

Please make note that Nova Home Loans still allows FICO scores as low as 580 for FHA & VA loans.

Tax Credit
I am sure that many of you have been hearing a lot about the tax credit now being available for use as a down payment on a home, which is great! However, the media spoke a little too soon because we have not received any guidance from HUD as to how it can exactly be used. This should be specified in a new mortgagee letter in the very near future, but as of right now the subject is still grey (see attcahed Mortgagee letter).

Market Update
Mortgage bond prices rose last week helping mortgage interest rates fall. Most of the gains came early in the week prior to the surprise inflation data. Weaker than expected retail sales data along with concern about the health of the banking industry helped mortgage bonds improve. Unfortunately stronger than expected producer price and core consumer price data Thursday and Friday stoked inflation fears which erased some of the earlier gains.

For LSR's or 2nd opinions on loan scenario's over the weekend, please call me on my mobile at 480-225-2987.

Rates for May 8th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 4.625%, 4.738%
30 Year Fixed Interest Only 6.00%, 6.113%
15 Year Fixed Conventional 4.25%, 4.383%
7/1 LIBOR ARM Conventional 4.25%, 4.363%
5/1 LIBOR ARM Conventional 3.75%, 3.863%
5/1 LIBOR ARM Interest Only 4.00%, 4.121%
30 Year FHA/VA 5.00%, 5.252%
*30 Day Lock

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851%
15 Year Fixed (to $600K) 5.625%, 5.726%
5/1 Treasury ARM 4.75%, 4.851%
7/1 Treasury ARM 5.00%, 5.252%
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
3/1 LIBOR ARM (Conforming) 5.625%, 6.007%
5/1 LIBOR ARM (Jumbo) 6.625%, 6.977%
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.Prior to modification, a free one-time float down is available. (30 Year Amortization)
For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

Market Update + Rates, 580 Fico Still Available!

Please make note that Nova Home Loans still allows FICO scores as low as 580 for FHA & VA loans.

Mortgage bond prices remained unchanged for the week keeping mortgage interest rates steady. Trading remained volatile with rates improving the first portion of week. However, some of the data came in surprisingly better than expected Thursday and Friday which caused mortgage bond prices to fall and rates to rise.

There is a Chinese proverb that states, "May you live in interesting times." It is often argued that the word interesting is meant to be a synonym for turbulent or dangerous. This phrase hits the bull’s-eye given the current state of the financial markets. While stocks and bonds are swinging around wildly there is some good news. Interest rates for conforming and FHA/VA loans are still historically low by many standards.

However, low rates are not a given considering the escalating inflation fears that reemerged recently. Oil prices rose most of last week and Fed Chairman Bernanke expressed concerns about "how to wind down the federal balance sheet" and "avoid inflation." When a Fed official mentions inflation it is generally not positive for bonds. Inflation, real or perceived, erodes the value of bonds causing bond prices to fall and rates to rise. The last thing the economy needs now is rising mortgage interest rates. If inflation emerges that very well may happen despite the continued Fed efforts to keep rates low.

Pending home sales jump 3.2%

Dow up 165 as hopes build for a recovery

Please give me a call if you have any financial questions or if you need a second opinion on a loan scenario.


Rates for May 8th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 4.625%, 4.738%APR
30 Year Fixed Interest Only 6.00%, 6.113%APR
15 Year Fixed Conventional 4.25%, 4.383%APR
7/1 LIBOR ARM Conventional 4.25%, 4.363%APR
5/1 LIBOR ARM Conventional 3.75%, 3.863%APR
5/1 LIBOR ARM Interest Only 4.00%, 4.121%APR
30 Year FHA/VA 5.00%, 5.252%APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851%APR
15 Year Fixed (to $600K) 5.625%, 5.726%APR
5/1 Treasury ARM 4.75%, 4.851%APR
7/1 Treasury ARM 5.00%, 5.252%APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
3/1 LIBOR ARM (Conforming) 5.625%, 6.007%APR
5/1 LIBOR ARM (Jumbo) 6.625%, 6.977%APR
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.Prior to modification, a free one-time float down is available. (30 Year Amortization)
For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

Weekly Rates + FHA/VA Down to 580 Still!

Please make note that Nova Home Loans still allows FICO scores as low as 580 for FHA & VA loans!! We are now also able to underwrite In-House for a much speedier process.

Month of April was best month for S&P since 2000. Economy showing signs of recovery.

Mortgage bond prices fell last week applying upward pressure on mortgage interest rates. Trading remained extremely volatile with daily swings of 3/8’s in discount points a common occurrence. The economic data released was mixed with no clear indication of the direction of the US economy. The Federal Reserve met last week and the governing body indicated the pace of economic deterioration is slowing.

The employment report to be released next Friday will be the most significant data this coming week. Productivity data will be important also. Additional debt supply hits the market this week with the Fed auctioning $71 billion of 3, 10, and 30 year Treasuries. It will be interesting to see if the market can continue to absorb the additional debt.

So far the Fed has been able to keep mortgage interest rates relatively low while not destroying the functioning secondary market where investors buy and sell mortgage bonds. The potential negative is that the Fed has become the primary purchaser of these bonds. In the short term take advantage of these advantageous rates. There is uncertainty how things will play out once the Fed begins to unwind those positions in the futures.

Please give me a call if you have any financial questions or if you need a second opinion on a loan scenario.


Rates for May 1st, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 4.625%, 4.738%APR
30 Year Fixed Interest Only 6.00%, 6.113%APR
15 Year Fixed Conventional 4.25%, 4.383%APR
7/1 LIBOR ARM Conventional 4.25%, 4.363%APR
5/1 LIBOR ARM Conventional 3.75%, 3.863%APR
5/1 LIBOR ARM Interest Only 4.00%, 4.121%APR
30 Year FHA/VA 5.00%, 5.252%APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851%APR
15 Year Fixed (to $600K) 5.625%, 5.726%APR
5/1 Treasury ARM 4.75%, 4.851%APR
7/1 Treasury ARM 5.00%, 5.252%APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
3/1 LIBOR ARM (Conforming) 5.50%, 5.882%APR
5/1 LIBOR ARM (Jumbo) 6.25%, 6.632%APR
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.Prior to modification, a free one-time float down is available. (30 Year Amortization)
For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

Weekly Rates + USDA Income Update + Market Update

Please take note, USDA income limitations have been raised! (see attachment). Now for a 1-4 person family the max income level is $75,750. This is still a great ZERO DOWN product for your clients that are purchasing in eligible areas. Click here for eligible property map.

Also, New home sales show signs of revival. Despite a decline in March, the annual rate remains above what economists expect after an even stronger than originally reported February.

For Pre-qualifications over the weekend or 2nd opinions on loan scenarios, please call my mobile at 480-225-2987.


Rates for April 24th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 4.625%, 4.738%
30 Year Fixed Interest Only 5.75%, 5.863%
15 Year Fixed Conventional 4.25%, 4.383%
7/1 LIBOR ARM Conventional 4.25%, 4.363%
5/1 LIBOR ARM Conventional 4.00%, 4.113%
5/1 LIBOR ARM Interest Only 4.125%, 4.238%
30 Year FHA/VA 5.00%, 5.252%
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851%
15 Year Fixed (to $600K) 5.625%, 5.726%
5/1 Treasury ARM 4.75%, 4.851%
7/1 Treasury ARM 5.00%, 5.101%
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
3/1 LIBOR ARM (Conforming) 5.50%, 5.882%
5/1 LIBOR ARM (Jumbo) 6.25%, 6.632%
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.Prior to modification, a free one-time float down is available. (30 Year Amortization)
For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

Weekly Rates

Rates for April 17th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 4.625%, 4.738% APR
30 Year Fixed Interest Only 5.75%, 5.863% APR
15 Year Fixed Conventional 4.375%, 4.498% APR
7/1 LIBOR ARM Conventional 4.25%, 4.363% APR
5/1 LIBOR ARM Conventional 4.00%, 4.113% APR
5/1 LIBOR ARM Interest Only 4.125%, 4.238% APR
30 Year FHA/VA 5.00%, 5.252% APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851% APR
15 Year Fixed (to $600K) 5.625%, 5.726% APR
5/1 Treasury ARM 4.75%, 4.851% APR
7/1 Treasury ARM 5.00%, 5.101% APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
3/1 LIBOR ARM (Conforming) 5.50%, 5.882% APR
5/1 LIBOR ARM (Jumbo) 6.25%, 6.632% APR
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.Prior to modification, a free one-time float down is available. (30 Year Amortization)
For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

Market Update + FHA 580 FICO

We are still able to close FHA Loans down to a 580!

Mortgage bond prices rose last week helping mortgage interest rates improve. Stock weakness early in the week helped bonds improve. But yesterday, Wells Fargo released first quarter earning of an estimated 3 billion dollars, exceeding expectations, which was a very positive sign. The trade deficit came in at $25.97 billion, lower than expected and the lowest level since 1999. Weekly jobless claims were not as bad as expected as well.

So far the Fed has been able to keep mortgage interest rates relatively low while not destroying the functioning secondary market where investors buy and sell mortgage bonds. The potential negative is that the Fed has become the primary purchaser of these bonds. In the short term take advantage of these advantageous rates. There is uncertainty how things will play out once the Fed begins to unwind those positions in the futures.

For any pre-qualifications or 2nd opinions on loan scenarios over the weekend, please call my mobile at 480-225-2987

Weekly Rates

Rates for April 9th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 4.625%, 4.738% APR
30 Year Fixed Interest Only 5.75%, 5.863% APR
15 Year Fixed Conventional 4.25%, 4.363% APR
7/1 LIBOR ARM Conventional 4.375%, 4.488% APR
5/1 LIBOR ARM Conventional 4.125%, 4.238% APR
5/1 LIBOR ARM Interest Only 4.25%, 4.363% APR
30 Year FHA/VA 5.00%, 5.252% APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851% APR
15 Year Fixed (to $600K) 5.625%, 5.726% APR
5/1 Treasury ARM 4.75%, 4.851% APR
7/1 Treasury ARM 5.00%, 5.252% APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
3/1 LIBOR ARM (Conforming) 5.50%, 5.882% APR
5/1 LIBOR ARM (Jumbo) 6.25%, 6.632% APR
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.Prior to modification, a free one-time float down is available. (30 Year Amortization)
For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

Weekly rates + Market Update + Termination of Canadian Foreign National Program

1) We are still able to close FHA's down to a 580 Fico

2) Unfortunately, we were only given a 12 hour notice on 3/31 that the Canadian Foreign National Program has been terminated. Nova is looking for another outlet for these loans.

Mortgage bond prices fell last week applying upward pressure on mortgage interest rates. The bond market continued to come under pressure from significantly stronger stocks. The DOW shot towards the 8,000 mark despite data releases that showed continued economic weakness. Most worrisome were the many reports that indicated people continue to lose jobs. Consumers find it difficult to spend without a job or with the fear their job may be in peril. The weaker than expected consumer sentiment data provided evidence of that fear.

Inflation is typically the most important focus for the mortgage interest rate market. Inflation remains a concern as the Federal Government continues to print and spend money in an effort to spur the economy. Unfortunately, mortgage interest rates also continue to be pushed around by gyrating stocks and weak demand as performance uncertainty looms and the Fed has become the primary buyer of mortgage-backed securities. Most of the recent increases in interest rates have come following stronger stocks. The Fed continues to pump billions of dollars into the market to try to keep mortgage interest rates relatively low and steady. Up until this past week they have done a pretty good job of accomplishing that task. Remember, the Fed is not the only player in the game and selling pressure continues.

Analysts will monitor this next week’s consumer credit levels. There is much debate in the financial community about the future. Economists, market analysts, and traders all seem to have a different opinion about the future state of the economy and especially whether or not we have hit the bottom of the economic slide. One thing most market participants agree on is both the bond and stock markets are going to see additional volatility.

So far the Fed has been able to keep mortgage interest rates relatively low while not destroying the functioning secondary market where investors buy and sell mortgage bonds. The potential negative is that the Fed has become the primary purchaser of these bonds. In the short term take advantage of these advantageous rates. There is uncertainty how things will play out once the Fed begins to unwind those positions in the futures.

For assistance over the weekend, you can reach me on my mobile at 480-225-2987 for pre-qualifications and 2nd opinions on loan scenarios.

Rates for April 3rd, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 4.875%, 4.988% APR
30 Year Fixed Interest Only 6.00%, 6.113% APR
15 Year Fixed Conventional 4.375%, 4.488% APR
7/1 LIBOR ARM Conventional 4.50%, 4.613% APR
5/1 LIBOR ARM Conventional 4.125%, 4.238% APR
5/1 LIBOR ARM Interest Only 4.25%, 4.363% APR
30 Year FHA/VA 5.00%, 5.252% APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851% APR
15 Year Fixed (to $600K) 5.625%, 5.726% APR
5/1 Treasury ARM 4.75%, 4.851% APR
7/1 Treasury ARM 5.00%, 5.252% APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
3/1 LIBOR ARM (Conforming) 5.50%, 5.882% APR
5/1 LIBOR ARM (Jumbo) 6.25%, 6.632% APR
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.
Prior to modification, a free one-time float down is available. (30 Year Amortization)

For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

Weekly Rates + Market Update

Valley Real Estate Analyst suggest housing has hit bottom

Mortgage bond prices fell last week applying upward pressure on mortgage interest rates. The bond market got a shock from a surprise increase in new home sales, stronger than expected durable goods orders, and some stock strength. There were also concerns about the US dollar in general and dollar denominated securities as China expressed interest in substituting the yuan to dollar peg in exchange for a new international currency. Fortunately the Fed continued to come to the rescue buying mortgage backed securities in an effort to keep interest rates relatively steady and low. For the week, interest rates on government and conventional loans rose by about 1/8 to 1/4 of a discount point. The employment report Friday will be the most important economic release this week.

Home mortgage rates dropped to a 52-year low this week, according to a report released Thursday, in the wake of the government's announcement that it will buy more than $1 trillion in debt.
The average 30-year fixed mortgage rate fell to 5.19% this week, down from 5.29% in the week prior, according to Bankrate.com's weekly national survey.

For pre-qualifications or 2nd opinions on loan scenarios over the weekend, please call my mobile at 480-225-2987.

Rates for March 20th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 4.75%, 4.883% APR
30 Year Fixed Interest Only 5.875%, 6.008% APR
15 Year Fixed Conventional 4.375%, 4.488% APR
3/1 LIBOR ARM Conventional 4.375%, 4.437% APR
5/1 LIBOR ARM Conventional 4.125%, 4.238% APR
5/1 LIBOR ARM Interest Only 4.25%, 4.363% APR
30 Year FHA/VA 5.00%, 5.252% APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851% APR
15 Year Fixed (to $600K) 5.625%, 5.726% APR
5/1 Treasury ARM 475%, 4.851% APR
7/1 Treasury ARM 5.00%, 5.101% APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
3/1 LIBOR ARM (Conforming) 5.50%, 5.882% APR
5/1 LIBOR ARM (Jumbo) 6.125% 6.507% APR
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.
Prior to modification, a free one-time float down is available. (30 Year Amortization)

For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

City of Phoenix $15,000 Down Payment Neighborhood Stabilization Program / Still offering 580 minimum Fico for FHA + Weekly Rates + Market Update

I have been receiving a lot of questions on the $15,000 City of Phoenix NSP. Click here for some helpful documents and information.


While most lenders are now requiring a 620 minimum Fico Score, we can still approve FHA loans to a 580 Fico!

Also please note the HomePath attachment at the bottom, as we are eligible to complete HomePath Financing for eligible homes. With good credit, it can be a great option for investors with a lower down payment and no mortgage insurance.

Mortgage bond prices rose last week applying downward pressure on mortgage interest rates. The bond market got a boost from the Fed announcement (read below) to buy more mortgage debt. There was some profit taking in bonds Thursday afternoon following the run-up in prices Wednesday. Higher than expected core readings of the consumer and producer price indices reignited some inflation concerns. The Fed's continued efforts to pump money into mortgage bonds helped keep mortgage interest rates favorable.

This week the Federal Reserve announced it would pump another $750 billion into purchasing more mortgage-backed securities, the bonds that directly dictate 30 year and 15 year fixed rate Government and Conventional mortgage interest rates. This is in addition to the $500 billion being used between January and June to drive mortgage interest rates lower and help stimulate the economy.

So far the Fed has been able to keep mortgage interest rates relatively low while not destroying the functioning secondary market where investors buy and sell mortgage bonds. The potential negative is that the Fed has become the primary purchaser of these bonds. In the short term take advantage of these advantageous rates. There is uncertainty how things will play out once the Fed begins to unwind those positions in the futures.

For immediate pre-qualifications over the weekend or 2nd opinions on loan scenarios, please call me at 480-225-2987.

Rates for March 20th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 4.75%, 4.883%APR
30 Year Fixed Interest Only 5.875%, 6.008%APR
15 Year Fixed Conventional 4.375%, 4.488%APR
3/1 LIBOR ARM Conventional 4.375%, 4.437%APR
5/1 LIBOR ARM Conventional 4.125%, 4.238%APR
5/1 LIBOR ARM Interest Only 4.25%, 4.363%APR
30 Year FHA/VA 5.00%, 5.252%APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851%APR
15 Year Fixed (to $600K) 5.625%, 5.726%APR
5/1 Treasury ARM4.75%, 4.851%APR
7/1 Treasury ARM 5.00%, 5.101%APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
3/1 LIBOR ARM (Conforming) 5.50%, 5.882%APR
5/1 LIBOR ARM (Jumbo) 6.125%, 6.507%APR
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.Prior to modification, a free one-time float down is available. (30 Year Amortization)
For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

Fannie Mae Homepath Financing + Weekly Rates and Market Update

Mortgage bond prices rose last week applying downward pressure on mortgage interest rates. The bond market as a whole absorbed the additional debt supply the Treasury issued. There were some surprises with the retail sales figure not being as weak as expected and significant stock strength. However, the Fed's continued efforts to pump money into mortgage bonds helped keep mortgage interest rates favorable. U.S. stocks rose to complete the biggest weekly gain for the Standard & Poor’s 500 Index since November as takeover speculation lifted health-care companies and financial shares capped the steepest advance on record.

Fanne Mae Homepath Financing
Fannie Mae works with all of its partners to help homeowners prevent and avoid foreclosure; however, sometimes it is unavoidable. When foreclosures occur on mortgages in which Fannie Mae is the investor, our goal is to sell properties in a timely manner in order to minimize the impact on the community.

Fannie Mae's HomePath database includes only properties that are owned by Fannie Mae. There is a wide selection of homes, including single-family homes, condominiums, and town houses -- located in a variety of neighborhoods. The number, types and the sales prices of the homes that are offered for sale may vary substantially. Many of these homes are relatively new; however, older homes are offered in some areas. Some homes may require repairs.

Usually, when you buy a home, you deal with a seller who lives in the home. Fannie Mae has acquired these properties through foreclosure, deed in lieu of foreclosure, or forfeiture.
When buying a Fannie Mae-owned home, you should know the condition of the property, as explained in more detail below, the cost of any needed repairs, and the steps in the loan qualification and closing process before you enter into a purchase and sales agreement.

http://reosearch.fanniemae.com/reosearch/

The financing benefits include:

• 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
• 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
• Also eligible for HomePath Renovation Mortgage
  

For pre-qualifications over 2nd opinions on loan scenarios over the weekend, please call my mobile at 480-225-2987 for assistance.


Rates for March 13th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 4.875%, 5.008%APR
30 Year Fixed Interest Only 6.375%, 6.488%APR
15 Year Fixed Conventional 4.375%, 4.488%APR
3/1 LIBOR ARM Conventional 4.375%, 4.437%APR
5/1 LIBOR ARM Conventional 4.125%, 4.238%APR
5/1 LIBOR ARM Interest Only 4.25%, 4.363%APR
30 Year FHA/VA 5.00%, 5.252%APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851%APR
15 Year Fixed (to $600K) 5.625%, 5.726%APR
5/1 Treasury ARM 5.375%, 5.476%APR
7/1 Treasury ARM 5.625%, 5.726%APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
5/1 LIBOR ARM (Conforming) 6.50%, 6.882%APR
5/1 LIBOR ARM (Jumbo) 6.875%, 7.132%APR
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.Prior to modification, a free one-time float down is available. (30 Year Amortization)
For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

Weekly Rates + Market Update

Mortgage bond prices rose last week applying downward pressure on mortgage interest rates. Rates found support from falling stock prices. The Dow Jones index fell into the 6,000 range early in the week and was unable to recover. The employment report released last Friday indicated continued weakness in the labor market with the US economy losing 651,000 jobs in February. The Treasury auctions will take center stage this coming week as debt supply concerns continue. Most of the other releases are expected to be weaker and, any surprises to the contrary, will likely result in mortgage interest rate volatility.

FHA Loan Limit Increases
FHA announced this week an increase in lending limits for both traditional loans as well as Reverse Mortgages. Maricopa County was raised from $271,050 back up to $346,250. Feel free to follow the link to HUD's website for all other counties in AZ. https://entp.hud.gov/idapp/html/hicost1.cfm

This is welcomed news for your buyers looking to put down as little as 3.5% and for your sellers in these higher priced ranges. This will open up more properties that will be available for FHA financing. Keep in mind, Nova still does offer 95% financing for conforming limits up to $417k.

Homeowner Affordabilty & Stability Plan
President Obama unveiled his plan to help stabilize the housing market and keep millions of borrowers in their homes. The Homeowner Affordability and Stability Plan includes two initiatives to help struggling homeowners. One is an incentive for homeowners who have less than 20% equity in their homes, or who owe more than their home is worth. The second part attempts to lower monthly payments for homeowners at risk of losing their home. Here is a brief overview of both initiatives.

Less than 20% equity in your home? Under current rules, those families who own less than 20% equity in their homes have a difficult time taking advantage of the historically low interest rates. This initiative is open to homeowners who have conforming loans that are guaranteed by Fannie Mae and Freddie Mac. The plan would enable them to move to a new loan for up to 105% of their homes value.

According to the plan, "credit-worthy" or "responsible" homeowners can refinance their mortgage into a 30- or 15-year, fixed-rate loan based on current market rates. The new loan, however, cannot include prepayment penalties or balloon payments. For many families, this low-cost option may help reduce their monthly payments by up to thousands of dollars per year. As with the rest of the plan, details about this initiative will be released at a future date-including what, if any, credit score requirements will be included.

On the verge of default? This initiative aims at providing help to individual families as well as entire neighborhoods by helping reduce foreclosures and stabilize home prices. It is intended to help homeowners who are struggling to afford their monthly payments, but cannot sell their homes because prices have fallen significantly. The goal of this initiative is simple: "reduce the amount homeowners owe per month to sustainable levels." Homeowners who are current on their loans but are struggling can still apply for this program. As such, this is one of the few programs designed to help homeowners who may face delinquency soon, but are current at the moment.

Since the focus of this initiative is on helping families and neighborhoods, investment properties do not qualify.

These plans-combined with today's historically low interest rates-have created an unprecedented opportunity for homebuyers. If you have any questions or would like to discuss how this may specifically impact you, I'd be happy to sit down with you. Just call or email me to set up an appointment.

Please give me a call if you have any financial questions or if you need a second opinion on a loan scenario or for immediate pre-qualifications.


Rates for March 6th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 4.875%, 5.008%APR
30 Year Fixed Interest Only 6.375%, 6.488%APR
15 Year Fixed Conventional 4.375%, 4.488%APR
3/1 LIBOR ARM Conventional 4.625%, 4.738%APR
5/1 LIBOR ARM Conventional 4.125%, 4.238%APR
5/1 LIBOR ARM Interest Only 4.25%, 4.363%APR
30 Year FHA/VA 5.00%, 5.252%APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851%APR
15 Year Fixed (to $600K) 5.625%, 5.726%APR
5/1 Treasury ARM 5.375%, 5.476%APR
7/1 Treasury ARM 5.625%, 5.726%APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
5/1 LIBOR ARM (Conforming) 6.50%, 6.882%APR
5/1 LIBOR ARM (Jumbo) 6.875%, 7.132%APR
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.Prior to modification, a free one-time float down is available. (30 Year Amortization)
For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

Weekly Rates + Important Fico Score Reminder

Just an FYI: We just received word that our most leniant investor will be changing it's FHA fico score requirements to 580 sometime next week from 540. If you have any clients on the fence with credit scores below this level, now is the time to buy!!! Their lock needs to be secured to a property in order to be grand- fathered into the old 540 guideline prior to the deadline. I will be notifying the clients as well ASAP.

Mortgage bond prices fell last week pushing mortgage interest rates higher. A Freddie Mac report of increased defaults sent bond prices crashing and interest rates higher mid-week. The Treasury auctions generally showed mediocre foreign demand and the overall additional debt supply also pressured mortgage bond prices lower. Most of the data continued to show economic weakness but there was a slight up tick in the consumer sentiment number that was not bond-friendly.

Now for good news. FHA announced this week an increase in lending limits for both traditional loans as well as Reverse Mortgages. Pima County was raised from $271,050 back up to $316,250. Maricopa was raised to $346,250. Click here for HUD's website for all other counties in AZ.

This is welcomed news for your buyers looking to put down as little as 3.5% and for your sellers in these higher priced ranges. This will open up more properties that will be available for FHA financing. Keep in mind, Nova still does offer 95% financing for conforming limits up to $417k

Keep in mind that market conditions as of late have been choppy and unpredictable. Any future data releases showing a rebound in the economy as well as the Fed's promise to buy Mortgage Bonds could lead to mortgage interest rate volatility, so lower rates are not a given.

Rates for February 27th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 5.00%, 5.113%APR
30 Year Fixed Interest Only 6.375%, 6.488%APR
15 Year Fixed Conventional 4.50%, 4.613%APR
3/1 LIBOR ARM Conventional 4.625%, 4.738%APR
5/1 LIBOR ARM Conventional 4.125%, 4.238%APR
5/1 LIBOR ARM Interest Only 4.25%, 4.363%APR
30 Year FHA/VA 5.25%, 5.502%APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851%APR
15 Year Fixed (to $600K) 5.625%, 5.726%APR
5/1 Treasury ARM 5.375%, 5.476%APR
7/1 Treasury ARM 5.625%, 5.726%APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
5/1 LIBOR ARM (Conforming) 6.50%, 6.882%APR
5/1 LIBOR ARM (Jumbo) 6.875%, 7.132%APR
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.Prior to modification, a free one-time float down is available. (30 Year Amortization)
For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

Weekly Rates + Stimulus Re-Cap

Mortgage bond prices rose last week applying slight downward pressure on mortgage interest rates. Weakness in the equity markets helped bonds recover from losses seen earlier in the week. On Thursday the Dow Jones index closed at October 2002 levels. The Federal Reserve continued buying mortgage bonds with the purchase of about $20 billion from February 12 through February 18.

Fannie, Freddie to fund part of $75B foreclosure fix

Obama administration is only using $50 billion of financial bailout package to fund its loan modification program. Remaining $25 billion coming from Fannie Mae, Freddie Mac and Department of Housing and Urban Development.

Stimulus Plan and what it entails:
Tax Credit for Homebuyers
First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.
The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

Tax Credit Versus Tax Deduction
It’s important to remember that the $8,000 tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a homebuyer were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, they would owe nothing. Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a homebuyer is liable for $4,000 in income tax, they can offset that $4,000 with half of the tax credit… and still receive a check for the remaining $4,000!

Phase-out Examples
According to the plan, the tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.

To break down what this phase-out means to homebuyers who are over those amounts, the National Association of Homebuilders (NAHB) offers the following examples:

Example 1: Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phase-out to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time homebuyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.

Example 2: Assume that an individual homebuyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.

Homes that Qualify
The tax credit is applicable to any home that will be used as a principle residence. Based on that guideline, qualifying homes include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured or homes and houseboats used for principle residence also qualify.

More Help for Homeowners in the Future
Another thing to keep an eye on in the coming weeks is President Obama’s plan to help struggling borrowers before they are faced with a default on their mortgage.

According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster.

While this is good news for individual homeowners, it will likely be good for the housing industry as a whole. That’s because, assisting struggling borrowers before they default should help stop the wave of foreclosures, which are estimated to top two million this year. That, in turn, will help stabilize home prices.

The Economic Stimulus Plan is huge, and impacts a number of industries. I’ve highlighted some of the major provisions that may impact you now and in the future. As always, if you have any questions or would like to discuss how this may specifically impact you, I’d be happy to sit down with you. Just call or email me to set up an appointment.

Keep in mind that market conditions as of late have been choppy and unpredictable. Any future data releases showing a rebound in the economy as well as the Fed's promise to buy Mortgage Bonds could lead to mortgage interest rate volatility, so lower rates are not a given.

Please give me a call if you have any financial questions or if you need a second opinion on a loan scenario. If you are calling after hours or on weekends, please call my mobile at 480-225-2987 for immediate pre-qualifications.


Rates for February 20th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 4.875%, 4.986%APR
30 Year Fixed Interest Only 6.375%, 6.488%APR
15 Year Fixed Conventional 4.375%, 4.498%APR
3/1 LIBOR ARM Conventional 4.50%, 4.613%APR
5/1 LIBOR ARM Conventional 4.25%, 4.363%APR
5/1 LIBOR ARM Interest Only 4.625%, 4.738%APR
30 Year FHA/VA 5.50%, 5.752%APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851%APR
15 Year Fixed (to $600K) 5.625%, 5.726%APR
5/1 Treasury ARM 5.375%, 5.476%APR
7/1 Treasury ARM 5.625%, 5.726%APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
5/1 LIBOR ARM (Conforming) 6.50%, 6.882%APR
5/1 LIBOR ARM (Jumbo) 6.875%, 7.132%APR
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.Prior to modification, a free one-time float down is available. (30 Year Amortization)
For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

Weekly Rates + Market Commentary + Program Update

We still can get your FHA loans done in 2 weeks when needed and we can go down to a 540 fico score!!

For housing stimulus updates, click here.

Mortgage bond prices rose last week pushing interest rates lower. Stocks struggled throughout most of the week, which helped funnel some funds toward bonds. The Treasury auctions dominated trading along with headlines questioning the efficacy of continued bailout efforts. Fortunately the Fed continued to buy mortgage bonds with purchases of about $23.2 billion February 5 through February 11. This buying helped buoy mortgage bond prices.

Continued stimulus spending developments dominate the financial headlines. Political party and intra-party disagreements are a daily occurrence as the merits of the proposals both future and past are debated. The debate involves who should get the money, how the money will be tracked, what ultimate effect will the money have on employment, and much more. Even with the stimulus, past and future, most signs point towards continued economic uncertainty.

One positive development for lower mortgage interest rates appears to be the purchasing of mortgage bonds by the Fed. This is separate from the stimulus spending that regularly makes the news. The Fed continues to buy billions of dollars of mortgage bonds. While the ultimate outcome is debated, the short-term reality is that the Fed’s purchasing has helped mortgage interest rates at the very least remain historically low. Whether the Fed can accomplish their goal of driving interest rates lower is still uncertain, but they obviously are trying. We know everyone would like to see lower rates but remember that stability is equally important. Sustained low rates generally are better than rapid fluctuations down and then quickly back up. Keep in mind that market conditions as of late have been choppy and unpredictable. Any future data releases showing a rebound in the economy as well as the Fed's promise to buy Mortgage Bonds could lead to mortgage interest rate volatility, so lower rates are not a given.

Please call me over the weekend at 480-225-2987 if you need 2nd opinions on loan scenarios or for quick pre-qualifications. Or, you can go directly to my website at http://www.creativefinanceaz.com/


Rates for February 13th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 4.875%, 4.988%APR
30 Year Fixed Interest Only 6.375%, 6.488%APR
15 Year Fixed Conventional 4.50%, 4.613%APR
3/1 LIBOR ARM Conventional 4.625%, 4.738%APR
5/1 LIBOR ARM Conventional 4.50%, 4.613%APR
5/1 LIBOR ARM Interest Only 4.75%, 4.863%APR
30 Year FHA/VA 5.50%, 5.752%APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851%APR
15 Year Fixed (to $600K) 5.625%, 5.726%APR
5/1 Treasury ARM 5.375%, 5.476%APR
7/1 Treasury ARM 5.625%, 5.726%APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
5/1 LIBOR ARM (Conforming) 6.50%, 6.882%APR
5/1 LIBOR ARM (Jumbo) 6.875%, 7.132%APR
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.Prior to modification, a free one-time float down is available. (30 Year Amortization)
For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

Weekly Rates + Market Update

Last Week In Review:

"ACTION IS THE REAL MEASURE OF INTELLIGENCE." Napoleon Hill. Last week was definitely action packed, though only time will tell how intelligent each action was - here are the highlights.

On Wednesday, the Fed announced that it decided to keep the Fed Funds Rate steady at the current 0 - .25% range, the lowest ever. They also indicated that "economic conditions are likely to warrant exceptionally low levels of the Federal Funds Rate for some time" and that "inflation pressures will remain subdued in coming quarters".

Also last week, the Federal Deposit Insurance Corp (FDIC) announced that it may set up a "bad bank" as a vehicle to buy toxic or illiquid assets from banks. What does a "bad bank" do? No, it doesn't talk back to you, give you attitude and treat you with disrespect. Lenders and the entire financial sector are struggling with "mark-to-market" accounting issues, and in the absence of a repair of the mark-to-market system, lenders are forced to sell assets in a market where there are few buyers. Hence the bad bank plan, to create an entity that will purchase the assets that no one else will buy, which is yet another very creative way for the government to breathe life back into the financial sector. This action is not finalized, so we'll keep watching closely to see how it plays out in the days ahead.

In other news, the House of Representatives passed President Obama's $819B stimulus package, by a vote of 244-188, being split fairly cleanly by party lines. Existing Home Sales did surprisingly come in a bit better than expected, but 4th Quarter Gross Domestic Product (GDP) numbers showed the economy contracted in the 4th quarter, as you can see in the chart below. While the numbers were better than estimates, the economy was still at its slowest pace in 26 years.

Last week was indeed action packed, and Bonds and home loan rates felt the effect, with rates ending the week about .25% worse than where they began.

TAKING ACTION TO MAKE SURE YOUR BUDGET IS IN ORDER IS CERTAINLY AN INTELLIGENT MOVE DURING THESE CHALLENGING ECONOMIC TIMES.

Rates for January 30th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 5.00%, 5.113%APR
30 Year Fixed Interest Only 6.50%, 6.723%APR
15 Year Fixed Conventional 4.75%, 4.863%APR
3/1 LIBOR ARM Conventional 4.875%, 4.973%APR
5/1 LIBOR ARM Conventional 4.875%, 4.976%APR
5/1 LIBOR ARM Interest Only 5.125%, 5.238%APR
30 Year FHA/VA 5.50%, 5.752%APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851%APR
15 Year Fixed (to $600K) 5.625%, 5.726%APR
5/1 Treasury ARM 5.375%, 5.476%APR
7/1 Treasury ARM 5.625%, 5.726%APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
5/1 LIBOR ARM (Conforming) 6.00%, 6.382%APR
5/1 LIBOR ARM (Jumbo) 6.375%, 7.757%APR
*60 Day Locks

6,9,12, and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.Prior to modification, a free one-time float down is available. (30 Year Amortization)
For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

The time to buy is NOW!!!

Homebuyers ask me every day one of these two questions: "when is the right time to buy?" or "has this market hit bottom?" The media comes at us every day with negative stories about the housing market and the economy. But the truth is this- we are in the middle of probably the best homebuying opportunity of our lifetimes. Prices have decreased dramatically over the past few years and you are probably asking yourself when will it stop? Well, let's take a look at the data to see what's going on...

First of all, pending and closed sales numbers in the Metro Phoenix MLS are increasing each month as the number of active listings is decreasing, meaning more inventory is being absorbed. The Fed is also putting more pressure on banks to NOT foreclose and work out loan modifications and other alternatives with their borrowers, which will further reduce new inventory.

Secondly, interest rates rose last week after they dropped lower than they've been in over 40 years. Inflation is expected to rise which will push interest rates higher. Rates are expected to increase to around 6.5% this summer and we are expected to see rates in the 8-8.5% range by years end. Think about how much money that equates to if prices remained flat and rates increased even 1 to 2 points???

Let me go back to inventory for a second. During 2005 and 2006 we were building about 60K to 80K homes a year, a driving force of the building boom was cheap labor. With Arizona now being one of the strictest state in regards to illegal immigration, much of that workforce is now gone. Over the next few years we are only projected to build about 5-8K new homes, essentially the homebuilding has stopped in AZ. So basically the homes that are existing today are what will be around a few years from now...this leads me to another interesting fact. The vacancy rate in Maricopa County is about 12% currently, the highest it has been in a long time. In 3 years that vacancy rate is expected to reduce to 2%...rents will be going up. A home that rents for about $1000/mo today will almost double within 3 years to around $1800/mo.

There is also talk in Congress of reinstating Down Payment Assistance programs and extending the $7500 tax credit to first time homebuyers, also eliminating the pay-back requirement. Both of these measures are expected to pass and when they do, we will see a large influx of eager buyers into our market who otherwise wouldn't qualify.

So, if you miss this buying opportunity and rent for a year, rates will be about 2% higher and prices will be higher due to inventory shrinking over the next year. This is the time that buyers have been waiting for and we will only realize that we were at the bottom when we look back a year from now. If you or anyone you know is thinking about purchasing a home, now is the time to do it. Also contrary to what you hear in the media, great financing is still available including low down payment and even NO DOWN PAYMENT. If you are in a position to buy, your monthly mortgage payment could be less than renting a comparable home! Take advantage of this market now, there is a reason that investors are buying property again, this is the information that they have access to...

Weekly Rates + Market Update

Mortgage bond prices fell last week pushing rates slightly higher. In an announcement earlier in the month, Fed Chairman Bernanke indicated the timing of a global economic recovery was "highly uncertain." This uncertainty was reinforced last week as the economic turmoil continued across the globe and Spain joined Greece to become the second Euro zone country to have their debt downgraded by Standards and Poor’s. A lower debt rating increases the cost to borrow further aggravating the attempts to fund the massive bailouts. The abundance of fundamental data this week provides a good opportunity for mortgages to improve. If the data shows weakness in the economy then it is possible for mortgage bonds to rally resulting in mortgage interest rate decreases. However, if the data shows that the economy is rebounding or any significant signs of inflation, mortgage bonds may fall pushing mortgage interest rates higher.

Also, licensed agents, if you would like to purchase a home utilizing FHA financing, you can use your co-broke to go towards your 3.500% down payment requirement!

Please give me a call if you have any financial questions or if you need a second opinion on a loan scenario. If you are calling after hours or on weekends, you can reach me on my mobile 480-225-2987 or apply online at www.creativefinanceaz.com
Have a great weekend!!!

Rates for January 23th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 4.875%, 4.988% APR
30 Year Fixed Interest Only 6.50%, 6.723% APR
15 Year Fixed Conventional 4.625%, 4.738% APR
3/1 LIBOR ARM Conventional 4.875%, 4.976% APR
5/1 LIBOR ARM Conventional 4.875%, 4.976% APR
5/1 LIBOR ARM Interest Only 5.00%, 5.113% APR
30 Year FHA/VA 5.250%, 5.502% APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851% APR
15 Year Fixed (to $600K) 5.625%, 5.726% APR
5/1 Treasury ARM 5.375%, 5.476% APR
7/1 Treasury ARM 5.625%, 5.726% APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
5/1 LIBOR ARM (Conforming) 6.00%, 6.382% APR
5/1 LIBOR ARM (Jumbo) 6.375%, 7.757% APR
*60 Day Locks

6,9,12, and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.
Prior to modification, a free one-time float down is available. (30 Year Amortization)

For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

Weekly Rates + Market Update

A Note on Down Payment Assistance...
We have been informed that a bill to reinstate reformed downpayment assistance is being re-introduced to congress. The bill is expected to be introduced by Congressman Al Green (TX) with bipartisan support. The bill will have the same language as unanimously passed last year by the House Financial Services Committee.

We will keep you informed as we continue to support efforts to reinstate downpayment assistance.

Mortgage bond prices fell last week pushing rates higher despite continued signs of economic weakness. The Senate approved additional TARP funding pushing another $350 billion into the effort to stem the credit crisis. Consumer sentiment came in surprisingly better than expected despite headlines dominated by news that financial firms continue to struggle. Fed Chairman Bernanke indicated the timing of a global economic recovery was "highly uncertain."

The housing starts data Thursday will be the most important event this coming week. The bond market is closed Monday in honor of the Martin Luther King Holiday. The market may be volatile when trading resumes Tuesday. Housing starts data is a leading indicator of the state of our economy. This report, provided by the Bureau of the Census, takes into account data from both single-family homes and multi-family dwellings. Building permits are also released with the housing starts data. By knowing the number of permits issued monthly, analysts can attempt to estimate for the upcoming months. Normally, starts are 10% higher than permits since all locations are not required to have a building permit.
Housing starts and permits give a warning of future economic activity. In effect, a rise in housing starts can lead to a fall in the bond market and vice versa. Consumers tend to hold off on the purchase of new homes, new cars, and other big-ticket items if they are worried about the future of the economy. Housing is an important part of our economy. Continued declines in housing starts can lead to continued economic slowdown and essentially a deeper recession. On the other hand, increases in housing starts could signal a possible reversal.

From the opposite perspective, changes in interest rates often lead to changes in housing starts. High interest rates can cause a significant decline in home sales, which can lead to a drop in housing starts. Just the opposite happens when rates drop and is one of the additional reasons the Fed is trying to keep rates low. Low mortgage rates affect both home sales and housing starts.

The housing market across the country is a vital component in sustaining the economy. For some time homeowners generally saw an increase in the value of their homes. Unfortunately now that has all changed. The softening of the housing market tied to credit concerns continues to have many worried.

Please give me a call if you have any financial questions or if you need a second opinion on a loan scenario. You can also go directly to my website: www.creativefinanceaz.com for information or to fill out an application.

Rates for January 16th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 5.00%, 5.113% APR
30 Year Fixed Interest Only 6.50%, 6.613% APR
15 Year Fixed Conventional 4.875%, 4.988% APR
3/1 LIBOR ARM Conventional 4.75%, 4.863% APR
5/1 LIBOR ARM Conventional 4.75%, 4.874% APR
5/1 LIBOR ARM Interest Only 4.875%, 4.988% APR
30 Year FHA/VA 5.00%, 5.252% APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851% APR
15 Year Fixed (to $600K) 5.625%, 5.726% APR
5/1 Treasury ARM 5.375%, 5.476% APR
7/1 Treasury ARM 5.625%, 5.726% APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
5/1 LIBOR ARM (Conforming) 6.00%, 6.382% APR
5/1 LIBOR ARM (Jumbo) 6.375%, 7.757% APR
*60 Day Locks

6,9,12, and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.
Prior to modification, a free one-time float down is available. (30 Year Amortization)

For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

Weekly Rates + Market Update

Stocks slumped Friday afternoon after a government report showed another big monthly drop in payrolls, resulting in the biggest annual job loss since just after World War II. Employers cut 524,000 jobs from their payrolls in the last month of the year after cutting a revised 584,000 in the previous month. That brought 2008's total job losses to nearly 2.6 million, the worst year for workers since 1945.The 524,000 number was roughly in line with the 525,000 forecast by economists surveyed by Briefing.com. However, many on Wall Street had thought the number might be even higher, after a report earlier this week showed the private sector lost 693,000 jobs in December.The unemployment rate, generated by a separate survey, rose to 7.2% from a revised 6.8% in November. Economists thought it would rise to 7%.

Mortgage bond prices remained volatile last week with trading tied to both the Treasury market and stocks. The Treasury market (10 and 30-year bonds) lost significant ground early in the week as investors fled the low yields opting to purchase Mortgage Backed Securities instead. The selling pressure in Treasuries caused those rates to move higher however mortgage rate benefited. Adding support to mortgage rates were lower stocks where the DOW Jones index fell below 9,000 early in the week.

Please give me a call if you have any financial questions or if you need a second opinion on a loan scenario. You can also go directly to my website: www.creativefinanceaz.com for information or to fill out an application.

Rates for January 9th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 4.625%, 4.738%APR
30 Year Fixed Interest Only 6.375%, 6.488%APR
15 Year Fixed Conventional 4.25%, 4.363%APR
3/1 LIBOR ARM Conventional 4.75%, 4.863%APR
5/1 LIBOR ARM Conventional 4.625%, 4.738%APR
5/1 LIBOR ARM Interest Only 4.75%, 4.863%APR
30 Year FHA/VA 5.00%, 5.252%APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851%APR
15 Year Fixed (to $600K) 5.625%, 5.726%APR
5/1 Treasury ARM 5.375%, 5.476%APR
7/1 Treasury ARM 5.625%, 5.726%APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
5/1 LIBOR ARM (Conforming) 6.375%, 6.757%APR
5/1 LIBOR ARM (Jumbo) 6.625%, 7.132%APR
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.
Prior to modification, a free one-time float down is available. (30 Year Amortization)

For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.

Search Phoenix Metro Bank Owned Foreclosures!

Search Phoenix and surrounding cities for Bank Owned homes:

www.PhxRepoHomes.com

-or-

http://danmullarkey.az-re.com/foreclosures_125318.cfm

Report: Housing Markets Will Roar Back in 2009

FAIR OAKS, CA - The nation’s foreclosure hemorrhage has finally slowed and 2009 should see a significant decline in foreclosures as buyers return, pushing home prices up and fueling a real estate recovery, according to the 2009 Outlook from ForeclosureS.com.
“Recovery is underway. Affordable is back in the housing market,” says Alexis McGee, real estate expert, educator, and president of ForeclosureS.com. “In 2009, housing will not only recover, but we’ll see buyers leap into this market in droves, depleting our housing oversupply, and actually put higher price pressures on the market.”
“With 4.5% fixed mortgage rates, housing prices lower than they were 'pre-housing bubble', commodity prices lower, tax credits available for homebuyers, and the government eager to stimulate our economy, for the first time in years I can see prices rising again in 2009” adds McGee. “This is a great time to buy properties for investors -- to buy properties at wholesale prices below today’s already low prices -- rent them out for positive cash flow and then sell them for big profits in late 2009 once price appreciation kicks in.“
The latest U.S. Foreclosure Index by ForeclosureS.com shows a slight drop from 84,534 to 84,291 in the number of properties repossessed by lenders following foreclosure last month over October. These are REOs or lender-owned real estate. But that’s off nearly 21% from September’s 106,415 REO filings. (Year to date 12.6 of every 1,000 households nationwide have been lost to foreclosure.)
“Certainly some of the drop reflects growing results of government and private efforts to keep homeowners in their homes,” says McGee. “But the recovery takes shape when you factor in other things like what the National Association of Realtors calls ‘solid’ gains from a year ago in existing home sales in some key areas, and the fact that many of the same areas are seeing dropping home prices. Fewer foreclosure actions were initiated in the last quarter, too, according to the latest Mortgage Delinquency Survey from the Mortgage Bankers Association,” McGee adds.
“California is a great example of what’s happening now and what lies ahead for the housing sector. Long a leader in the subprime mortgage mess and rising numbers of foreclosures, the state’s foreclosures have slowed significantly,” says McGee.
The latest U.S. Foreclosure Index numbers show November REO filings in the state down to 15,978 in November, down 6.55% from October and off nearly 50% from September. Home prices there have come down, too, as much as 39.4% from the third quarter from a year ago in some areas like Riverside-San Bernardino-Ontario, according to National Association of Realtors numbers. That’s left many homeowners that bought their homes at high price points with upside down mortgages—they owe more than the value of the home. But it’s also made homes more affordable for plenty of other people. Solid and in many cases rising existing homes sales support that, adds McGee.
In November, another perennial leader in foreclosures, Arizona, saw its REOs and pre-foreclosure filings drop (down 5.19% and 5% respectively), according to U.S. Foreclosure Index numbers.
The pre-foreclosure picture when averaged nationally isn’t quite as bright. Pre-foreclosures include notice of mortgage default and/or foreclosure auction. Amid all the negative economic news across the nation, pre-foreclosures for November were up 5.57% from October with 27.1 of every 1,000 households across the country facing some kind of foreclosure action (177,254 vs. 167,906 filings in October). But that’s still down nearly 2% and more than 7.5% from March’s high, according to U.S. Foreclosure Index analysis.
“Pre-foreclosure numbers likely climb in early 2009 (albeit at a much slower rate than in 2008)” says McGee. “Too many homeowners already are just too overextended and likely won’t seek help to work out their delinquent mortgages until after a pre-foreclosure filing against their property. That filing, it seems, is the wake-up call for many to get the help they need and sell” McGee adds.
“Potential homebuyers and investors on the other hand, will find the bargains growing in 2009,” says McGee. “As the year progresses more bright spots will emerge, too, both in terms of foreclosure numbers and housing markets as efforts to work with strapped homeowners really begin to take root.”
“I wish my crystal ball could pinpoint everything that’s going to happen with housing markets in the next 12 months, but there are just too many variables. What I can tell, though, is that hardest hit housing markets have already hit bottom and others will follow in 2009. Third-quarter National Association of Realtor numbers actually show existing home sales picking up in about 20 percent of the areas studied. And, given the uncertainty and volatility of the stock market combined with all time low interest rates, extremely affordable low priced homes, and all the choices out there, 2009 is an excellent time to buy real estate. Properties, especially foreclosed ones, will be highly discounted, lenders are motivated to work with buyers, and the opportunities are abound. The bottom line to keep in mind: What goes down absolutely positively will go back up again.
“The return of solid housing markets is an important part of restoring stability to financial markets. The market will return when mortgage rates and home prices are down, and that's exactly what is happening now in the hardest-hit areas of the country,” adds McGee.

Weekly Rates + Market Update

As the first full trading week in the New Year begins, more important news is coming as we look forward to Friday's Jobs Report, which will show the number of jobs lost or gained in December. Remember that the Department of Labor averages their numbers, and part of each month's report includes "revisions" to the several prior months' numbers.

The employment news last month was record-breaking: 533,000 jobs were lost during the month of November, which represented the most job losses the US has seen in 35 years. Additionally, November was only the fourth time in 58 years that our economy lost over 500,000 jobs. And adding more pain to last month's Report were heavy downward revisions for September and October, which erased an additional 199,000 jobs.

I'll be watching closely to see how Bonds and home loan rates respond to the Report...and all the other news this coming week is sure to have in store! Again, I encourage you to get in touch with me to review your own home loan scenario. We can determine together if it makes sense to consider acting on the low home loan rates currently available.

Rates for January 2nd, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 5.25%, 5.363%APR
30 Year Fixed Interest Only 6.75%, 6.863%APR
15 Year Fixed Conventional 4.75%, 4.863%APR
3/1 LIBOR ARM Conventional 5.00%, 5.113%APR
5/1 LIBOR ARM Conventional 5.25%, 5.363%APR
5/1 LIBOR ARM Interest Only 5.375%, 5.488%APR
30 Year FHA/VA 5.50%, 5.726%APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851%APR
15 Year Fixed (to $600K) 5.625%, 5.726%APR
5/1 Treasury ARM 5.375%, 5.476%APR
7/1 Treasury ARM 5.625%, 5.726%APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
5/1 LIBOR ARM (Conforming) 6.375%, 6.757%APR
5/1 LIBOR ARM (Jumbo) 6.625%, 7.132%APR
*60 Day Locks

6,9,12 & 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.
Prior to modification, a free one-time float down is available. (30 Year Amortization)

For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score.