New Lending Guidelines!

Lenders are beginning to accept applications under the new HARP 2 rules – there is no loan-to-value limit on HARP refis for borrowers who have fixed-rate mortgages (if you are underwater this is GREAT news).

Here is a brief overview of HARP 2’s guidelines:

· 1. The program is for borrowers whose mortgages are owned by Fannie Mae or Freddie Mac, and who got their loans before May 2009.

· 2. HARP had been scheduled to expire at the end June 2012; HARP 2 extends the expiration to the end of 2013.

· 3. There is no loan-to-value cap anymore for borrowers who now have fixed-rate mortgages.

· 4. For borrowers with ARMs, the loan-to-value cap remains 105 percent.

· 5. Borrowers can qualify for HARP 2 refis if they have paid on time for the last six months and have no more than one 30-day late payment in the last 12 months.

· 6. Fees have been reduced. Under HARP 2, the fees are reduced to zero percent on loans for 20 years or fewer, and 0.75 percent for mortgages for more than 20 years and for ARMs.

I wanted to remind everyone about our current refinance fund raiser for VW and the Dad’s club. For the month of February, I will donate $250 in the name of the family refinancing with me to the non-profit of their choice. $250 went to the Dad’s club this week in honor of a local VW Family, the Dad’s club and all thank you!

Please give me a call if you have any questions or if I can help with your financing needs!

Positive news in the equity markets



The stock market was up again this week and with that mortgage rates increased slightly as well. That being said, interest rates remain extremely low and if you are considering refinancing or purchasing a new home rates in the 3’s and 4’s won’t last forever. This is probably the last week to apply if you would like to refinance prior to the end of the year in order to take advantage of potential tax savings on your 2011 returns.  I am still offering no points/no closing cost loans as well as the $250 donation to the school or charity of your choice. Hope you have a great Halloween weekend!!!

The stock market rallied…

This week in the market:

during the week which resulted in a slight mortgage rate increase from last week’s all time lows as Investors grew more optimistic about US economic growth and less concerned about the European debt situation.

In addition, the FOMC Minutes from the September 21 Fed meeting revealed that Fed officials expect the economy to avoid recession. In recent weeks, investors have been gradually upgrading their economic outlook. Stronger growth is good for the economy, but it increases inflationary pressures, which is negative for mortgage rates.

All that being said, mortgage rates are unbelievably low right now. Please contact me for a free rate quote and don’t forget I will donate $250 to your charity of choice (Dad’s club and any of the local grade schools included) upon successful closing of a refinance or purchase money financing.

Until next week,

Loan Originator

Capital Mortgage Services

NMLS # 274423

DRE #01364801

(323) 864-7784 Direct

(323) 386-4300 Fax

You thought you would never refinance again

Even if you thought you would never refinance again, rates are so low this week that it will probably make financial sense to do so – especially if you plan on staying in your property for a while. We are doing a lot of refinances with no closing costs right now. If this is something that interests you I encourage you to contact me as I can give you a good idea of your probable rate in a 5 minute conversation. Why not reduce your payment by a couple hundred dollars a month at no cost to you? And for our local community, I will donate $250 to the Dad’s club or the non-profit of your choice at closing!

Mortgage Market

Mortgage markets improved last week on a weak jobs report, expectation for new market stimulus, and growing evidence of a global economic slowdown. Overall, conforming mortgage rates in California improved for the first time in 3 weeks. On a product-by-product basis, though, mortgage rates are faring differently. According to the Freddie Mac weekly mortgage rate survey last week, the 30-year fixed rate mortgage was unchanged but the 15-year fixed rate mortgage and the 5-year ARM fell.

The great news is that the 5-year ARM is at a new all-time low for qualified borrowers!

A drop in 5-year ARM rates throughout California without a corresponding drop in 30-year fixed mortgage rates signals that markets expect the economy to stabilize over the long-term but with weakness in the near-term. The 5-year ARM’s ultra-low rates suggests marked weakness ahead. The 5-year ARM may get another boost this week, as well.

While U.S. markets were closed for Labor Day, Eurozone nations were hit with a new wave of sovereign debt concern, this time centered on Italy. Greece, Portugal and Ireland have already been the subject of debt default debate this year. Italy’s inclusion hit equity market hard and safe-haven buying re-commenced. This should give a good start to mortgage rates this week. Look for rates to start lower. That’s not to say, however, that they’ll finish the week lower. With very little economic data due for release, markets will move on momentum and momentum can change at any time.

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