Thursday, January 27, 2011

How Does a Cash Advance Buy Respect?

Economic life in challenging times can do a number on your dignity. Particularly for the working person, always having to fight to pay bills on time, a single emergency expense (such as broken appliances, insurance deductibles and medical co-pays) can make all your hard work seem futile. If you need to buy back some respect, maybe a online cash advance can help you do it.

What is a cash advance? It’s your next paycheck, except it comes earlier. It won’t be the full amount, but a portion of your pay – which might be just enough to pay the most important bills. Cash advance loans are available through online payday loan companies, and restore respect for you and your work in the following ways:

• Cash advance loans respect you for working hard. If you have a job, you can get a cash advance. No collateral is required. No stellar credit rating is necessary (a cash advance is based on a paycheck only, so even if you have a very poor credit score it doesn’t matter). Just prove you are employed for one to three months and have a checking account where your loan can be received electronically.

• You manage your bills on YOUR schedule. Of course your rent or mortgage is due on one day, your phone and utility charges on others. Perhaps you have car loans and insurance payments that hit at different times during the month. With a cash advance, you will be able to pay those bills on their due date. That’s control of the calendar.

• An easy application respects your time. The whole process of applying for a cash advance loan takes about 20 minutes. That’s it – once the application is submitted online, from your personal computer, you simply sit back and get the approval. Check your bank the following morning and the money will be there.

After you’ve managed the bills for the month, and worked out a plan to repay the loan, you can look in the mirror with respect as well. You’ve earned it.

Tuesday, January 25, 2011

Home Values Continue To Decline

Data through November 2010 shows negative annual growth rates in 17 of the 20 MSAs and the 10- and 20-City Composites compared to what was reported for October 2010.
The 10-City Composite was down 0.4% and the 20-City Composite fell 1.6% from their November 2009 levels. Home prices fell in 19 of 20 MSAs and both Composites in November from their October levels.
Only four regions – Los Angeles, San Diego, San Francisco and Washington DC – showed year-over-year gains. Eight markets – Atlanta, Charlotte, Detroit, Las Vegas, Miami, Portland (OR), Seattle and Tampa – hit their lowest levels since home prices peaked in 2006 and 2007, meaning that average home prices in those markets have fallen even further than the lows set in the spring of 2009.
Your CS Housing chart round up, click for even larger graph:

Wednesday, January 5, 2011

Mortgage Rates Rise Across the Board

Word of the Week:

hesitates3rd person singular present of hes·i·tate (Verb)

1. Pause before saying or doing something, esp. through uncertainty.
2. Be reluctant to do something.  More »

Seems a lot of conforming mortgage folks missed the low 4% rates and never locked. He who hesitates loses. The price of borrowed mortgage money has risen about .50% in the last few weeks. We have seen increases especially on fixed jumbo loan products and fixed conforming government backed(taxpayer). This is pressuring home shoppers especially. We have heard from a lot of realtors that the recent rapid rate increases has resulted in clients waiting or being forced to downgrade or offer less on the property. It really is about the payment for all but the top 1-2% of earners. 

For a client borrowing a cool million on a jumbo mortgage, a .50% rate move is not insignificant. From 5% on a 30Y Fixed Jumbo Loan in late November to the first week of the new decade at 5.50% for a very well qualified borrower, moves the payment from $5368 to $5677. Long run that is over 100k in additional interest cost. Higher or lower from here? Biased higher. Nothing more concrete as Mr Jumbo Mortgage's crystal ball is in for warranty repair in a small Turkish village. Great Charts Below:

Job Market Improvement Boosts Jumbo Loan Rates

ADP reports:
Private-sector employment increased by 297,000 from November to December on a seasonally adjusted basis, according to the latest ADP National Employment Report® released today. The estimated change of employment from October to November was revised down but only slightly, from the previously reported increase of 93,000 to an increase of 92,000.

This month’s ADP National Employment Report suggests nonfarm private employment grew very strongly in December, at a pace well above what is usually associated with a declining unemployment rate. After a mid-year pause, employment seems to have accelerated as indicated by September’s employment gain of 29,000, October’s gain of 79,000, November’s gain of 92,000 and December’s gain of 297,000. Strength was also evident within all major industries and every size business tracked in the ADP Report.
This latest report came in very strong vs estimates of about 100k new jobs added in this period. This has resulted in an small early morning rally on Wall St. Stocks  are slightly higher but the biggest change is a rise in the 10Y Treasury from 3.33% to 3.45% as of 12:11 EST. We have seen a boost in mortgage rates across the board. Market based jumbo loan programs are up about .125%-.25% from yesterdays best levels. The plane is boarding don't be late before the captain shuts the door on 5% fixed jumbo loan rates.  

Tuesday, January 4, 2011

Jumbo Loan Rates: Was 2010 the Lowest?

Well, the final figures for 2010 are in and we may very likely have seen the best jumbo loan rates ever. But time will tell. If the economy double dips into a recession or the moon falls to earth causing epic panic then we may go back down to the sub 5% range for very well qualified clients. But the strong winds are blowing the sails of global economic recovery with the US projected to grow 2-3% in 2011. A rising economy will continue to push jumbo mortgage rates up. Mr Jumbo Mortgage advises to lock anything in the low to mid 5% range given the current environment. As in all things this could change in a minute. Contact our office anytime we can be of service here.

Monday, January 3, 2011

Timelapse of the Great Storm of 2010

December 2010 Blizzard Timelapse from Michael Black on Vimeo.

Impounds: Savvy Jumbo Loan Trick

Many aspects of a jumbo loan are confusing to borrowers, and impound (escrow) accounts rank high on the list. It’s the responsibility of the banker to educate borrowers on impounds, so the borrower can make the right decision based on his individual needs. But, the real trick is knowing that in general the rate discount for having impounds is about 0.125 up to 0.25% annually. As jumbo loans with impounds have the lowest rate of default so the saving is passed on.

Borrrowers who lack the discipline to save money and end up scrambling to write those big checks for property taxes and hazard insurance premiums may want to consider an impound account. The chart below shows some of the pros and cons of having an impound account. Borrowers who are more disciplined and can better manage money on their own may choose to not open an impound account.

Borrower convenience
Less control
Ensures payment
Homeowner is still responsible
Protects the home
Funds tied up
Earns interest (see below)
Earns little or no interest

Lender-Required Impounds
Lenders and investors are very risk-averse in today’s mortgage environment, and may require an impound account. Impounds are mandatory for all FHA loans, regardless of the loan-to-value (LTV). High LTV and high-balance loans are riskier for all lenders, and individual lenders may impose their own impound requirements. Even if a lender does not require impounds, there may be a fee to waive them. Unless impounds are required by a lender, the borrower should be educated and have the right to choose.

Many States Require Interest on Impounds to be Paid

2% annually
1.5% annually
0.205% quarterly
2% annually
3% annually
New York
2% quarterly
Rhode Island
0.225% annually
0.594% annually
0.25% quarterly
0.46% annually