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.
Thursday, January 27, 2011
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 »
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 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.
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.
Tuesday, January 4, 2011
Jumbo Loan Rates: Was 2010 the Lowest?
Monday, January 3, 2011
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. | |
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| | 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 |
| |  | STATE | CURRENT INTEREST |
| California | 2% annually | ||
| Connecticut | 1.5% annually | ||
| Maine | 0.205% quarterly | ||
| Massachusetts | 2% annually | ||
| Minnesota | 3% annually | ||
| New York | 2% quarterly | ||
| Rhode Island | 0.225% annually | ||
| Utah | 0.594% annually | ||
| Vermont | 0.25% quarterly | ||
| Wisconsin | 0.46% annually |
Thursday, December 23, 2010
Tuesday, December 7, 2010
Bond Market Doesn't Like Tax Cuts: Mortgage Rates Spike
Bond Market Revolt
The US Treasury bond market reaction to the Fed’s QE policies and to this disgrace of a budget proposal was swift and severe. I have a picture of it for you right here.
That is what the bond market thinks of Ben Bernanke’s plan to spur inflation but hold down treasury yields.
The ovals show today’s bond-market reaction to the budget deficit that Bernanke will no doubt monetize as part of QE III and QE IV when this round of “quantitative easing” blows up in his face.
Conforming Mortgages Went From 4.00% to 4.50% in the last few weeks. This is not helping housing or the economy at all.
Jumbo Mortgage Rates have moved from 5.00% to 5.375% in the last two weeks in particular.
Interest rates are ultra-low by historical standards by any measure but we can clearly see what will happen if enormous deficits, high unemployment and a weak dollar are not addressed soon by the FED, Congress and ultimately by the american people.
The US Treasury bond market reaction to the Fed’s QE policies and to this disgrace of a budget proposal was swift and severe. I have a picture of it for you right here.
That is what the bond market thinks of Ben Bernanke’s plan to spur inflation but hold down treasury yields.
The ovals show today’s bond-market reaction to the budget deficit that Bernanke will no doubt monetize as part of QE III and QE IV when this round of “quantitative easing” blows up in his face.
Conforming Mortgages Went From 4.00% to 4.50% in the last few weeks. This is not helping housing or the economy at all.
Monday, December 6, 2010
How the Mortgage Bubble Really Topped Out.
Part of the trillions in bad loans were the option ARMs(pick-a-pay) This nice FED produced map brings a lot of clarity via time series spread of complex mortgages shown in a recent Chicago Fed publication. Nothing like a good real estate crash to bring things to a halt CLICK IMAGE FOR LARGER VIEW:
Tuesday, November 30, 2010
Rainy Day Savers Rewarded With Lowest Jumbo Mortgage Rates In History
It has been a tough couple of years — almost the proverbial perfect storm — for clients needing to refinance a jumbo loan.
The Great Recession(depression?) has cut home values, turning some jumbo loans upside down for borrowers. Falling values and tighter credit have made refinancing difficult and qualifying new borrowers even tougher unless they were very prudent over the last few years. Socking away money for the proverbial rainy day.
Low and no down payment and adjustable rate schemes are history. ARMs are available but clients want fixed. Why gamble with future rates when fixed is at historic lows?
But the storm may have completely passed. Across several states luxury home values have stabilized and insanely tough credit standards are being moved down to the 700 FICO score level or better, interest rates are at historic lows again, new creative loan plans are emerging and pent-up demand for high-end housing is eager to enter the market.
Cloud Computing Technology specialist David Sparks was surprised when we informed him he would be able to refinance his $1.5 million post modern-style house in Santa Monica and tap into the equity for an additional $75,000 so he could remodel his kitchen.
Sparks, refinanced his expensive adjustable-rate mortgage into a 30-year fixed jumbo mortgage at 5.125 percent.
In 2009, the average rate on a 30-year jumbo mortgage was 6.86 percent compared to 5.25 percent in November, the lowest in history. That represents a significant savings for borrowers.
For example, a homeowner with a 30-year fixed jumbo mortgage balance of $900,000 at 6.25 percent pays $5,541 a month. The same balance refinanced into a 5.00 percent jumbo loan reduces the monthly figure by $710.
The jumbo mortgage market is alive and well for well-qualified borrowers, with well-qualified being the key word if you are still paying close attention. And creditworthy consumers are waiting much longer to close their jumbo mortgages while banks pore over financial documents and complete due diligence.
Borrowers face considerably more scrutiny than they did before the epic financial meltdown that started in 2008. With 10% of jumbo mortgages at least 60 days late the focus of underwriting is finding and lending to rock solid borrowers who have survived the financial storm by being prudent with their finances.
It used to be that high-earning borrowers with excellent credit and ample cash reserves could sign a new multi-million dollar jumbo mortgage or refinance an existing loan on their posh digs with no questions asked.
Of course, that was before the economy tanked and the housing market went belly-up, making lenders skittish about financing any type of mortgage, especially since they had to hold the loans they made on their balance sheets. Return of capital became the most important element of any loan. Those that qualify are being rewarded for their prudence.
Most client’s refinancing are saving 1-2 thousand dollars a month because they are dropping their interest rates over 1%. The majority of jumbo mortgage loans funded over the last quarter were 30Y fixed. Maybe running with the herd is right once in awhile. The latest chart should really demonstrate how much money is on sale for SOLID borrowers.
And above all please get a jumbo loan that makes sense for your short and long term financial plans. If your ready to start the conversation, contact one of our seasoned advisors by visiting our main site here. As always, have a prosperous day.
And above all please get a jumbo loan that makes sense for your short and long term financial plans. If your ready to start the conversation, contact one of our seasoned advisors by visiting our main site here. As always, have a prosperous day.
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