First Time Home Buyer Tax Credit Program, FHA Mortgage, Fixed Interest Rate Loan

$8000 Tax Credit for First Time Home Buyers with Low Down Payment. Lender Finance Program with Low Payment and Fixed Interest Rate on FHA Mortgage and Government Assistance. Go To RealEstateMarketingThisWeek.com Part 8 (Excerpt) Analyzing tax returns for self employed and small business owners; Use a Mortgage Planning Expert Credit scores now are a major factor with interest rates. You see the liars up on the internet with interest rates being at 4.625% and all this kind of hocus pocus, its not true. You are never going to qualify for that rate today. They are going to lie to you, once you sign and see the fine print you are going to realize that it is a ridiculous idea to pay that amount of money in fees. Credit scores have to be significantly higher than they used to, but again I have to tell you, its my opinions that a 70% no doc loan with someone who has a 720 or higher credit score I believe is a good loan. I personally believe that at some point it will be brought back. I am not arguing with that, with a good FICO score I can agree with a 20% down for a stated income loan. People are encouraged through our tax system to write off all of their expenses and so often we have small business people who really are making money but because they take advantage of our tax system they are not able to get a loan. They cant qualify based upon their income. In a lot of cases yes, but once again I definitely want to point his out just because someone is self employed and owns a …

FHA Mortgage Rate Reduction Free? Too good to be true?

www.lowestpymt.com Are you getting tons of junk in the mail about your mortgage? This one is what I would consider the most outrageous proposition yet. We’ve been getting mail from these people. Kwe “Clay” Parker has been claiming to lower FHA and VA mortgage payments for FREE. ***Yeah right!*** We had to look further into this and this is what we found. I highly advise that you watch this if you received mail from Kwe about the FHA streamline refinance or the FHA rate reduction program. Free mortgage payment reductions with no requalifying? Fortunately, we were able to locate one of their recent clients and he was kind enough to spill the beans on this thing. He made it short and to the point. He has a message for anyone remotely thinking about working with the Kwe “Clay” Parker that you’ve gotta hear. Watch the clip for the full scoop. FYI – in 2009, Kwe “Clay” Parker joined American Bank and has been helping more people, but now in ALL 50 states. Visit www.SmartHomeBuyingBook.com http www.lowestpymt.com www.thecreditrepairsecrets.com http www.themarketinggenie.net

First Time Home Buyer Tax Credit, FHA Loans, Low Mortgage Interest Rate Program

Tax Credit for First Time Home Buyer Program, with Low Down Payment and Interest Rates thru Government Loan Assistance and FHA Mortgage. Buy Cheap Bank Foreclosures. Go To RealEstateMarketingThisWeek.com Part 7 (Excerpt) FHA Guidelines regarding foreclosures and first time home buyers; incredible home buying value Ok I was just checking because I thought this was a story about all the mortgage backed securities that were going under. It started at the top and it worked its way down. The reality of it is that people were buying homes, not reading what they were signing, not understanding how it worked and shame on the people who were putting it in front of them, knowing that they didnt know and we all need to take a little responsibility here for this past crisis. It is not just the Wall Street firms; its not just the mortgage companies and banks, the brokers have little in fact to do with it, we didnt create the loan products that people were buying, we were merely disseminating it to the public. I am glad to say I was not a part of any of that. I was able to stay away and do traditional, conventional type financing for people. So luckily I didnt have a lot of clients who got stuck into that nightmare. Speaking of that nightmare, Dan when we talk about the people who have had foreclosures, their lives have been turned around, turned over and they think that there is no where for them to go. One of the nice things about the Federal Housing Administration loan, the FHA loan …

Interest Rates and Hyper Inflation

Andy Kessler asks a very important question: How do you “Put the Toothpaste Back in the Tube?”

Since we are printing up all of the money that doesn’t exist, and going into more and more debt, most economist agree that the threat of hyper inflation is coming down the road and either we head it off now or get eaten by it later.

Kessler begins thinking about how the Federal Reserve might go about heading off inflation as the economy begins to recover:

But how? Why, just do the exact opposite of what is in action now.Of course, you raise the interest rates. There are some bad debt out there that should never have been there such as the debt left by AIG and Bear Stearns. By removing all the backstops it put in for the commercial paper and other markets to keep them functioning. But won’t that have the effect of slowing the economy? You can bet on it. This is a tightrope act. Getting all that toothpaste back into the tube will require the skills of a surgeon and the moxie of a middle linebacker, and someone deaf, dumb, and blind to congressional meddling. Keep in mind that we are treading on uncharted ground now.

How this actually executes is going to be a critical factor in the future of the mortgage industry and your mortgage business. Something like this will most likely be very difficult to implement well. When there are interest rates at 10% or higher, who really wins?
As the Federal Reserve meets for FOMC this week the question of inflation is beginning to re-enter the discussion.

Federal v. State Banking Powers

Here is another issue that may have strategic impact on the future structure of the mortgage industry: “Can the US Treasury Shield National Banks from New York State Law?”

Four years ago, Eliot Spitzer, then the New York attorney general, asked several national banks to explain why they were disproportionately charging blacks and Hispanics high interest rates.

Instead of an answer, he got a lawsuit.  The banks, and the Treasury Department agency that regulates them, persuaded federal courts to bar the state attorney general from enforcing New York anti discrimination laws.

On Tuesday, the U.S. Supreme Court will hear New York’s appeal. If the state wins, it would mark a break with decades of precedent that mostly favors the powers of the federal government and open a new era for 50 state regulators to play a bigger role.

This would most likely put a huge movement and shift in the way that banks operate and we can only imagine that rates will start to move and probably up.

Mortgage Bond Quote 5-1-09

When I talk to people who are sitting and waiting for the mortgage interest rates to get better than they are today, I like to show them this graph of the mortgage bond markets current position vs. the past.   If you follow the market or rates in general, you will understand that bonds are close to all time highs which translates into the best rates we have had in 30 years.  See graph below.

Mortgage Bonds are trading lower today after failing to stay above support at the 25-day Moving Average.   A look at yesterday’s candle on the Bond Page shows both long upper and lower wicks, illustrating wild intra-day trading.  Prices bounced around, hitting both the 25-day MA ceiling of resistance, and support at the 50 and 100-day Moving Averages.

But so far this morning, although lower, Bond prices have successfully tested a triple layer floor of support, marked by the 50 and 100-day Moving Averages, as well as some previous lows.  This strong floor of support could help prices from getting much worse, but it is important to remember that there is a lot of influential news coming next week, along with huge supply of Bonds being auctioned, which could push prices below this strong floor.  And if prices do break beneath this floor, we will likely see another 75bp deterioration before the next level of support is found.  That said, we will Float for now, as we watch to see if this strong triple layer of support holds.

Secured Home Loans: a Haven for Yourself!

Ask Your Lender: Question 4

Click Here to download your copy of Refinance Secrets

Before you work with a lender, it is important that they understand mortgage bonds and also have access to their rates in real-time. Because the bond quotes move during the day, it is important to be watching their movement to know what advice to give borrowers and to know when to lock a rate and when to float a rate.

Many people fail to ask the questions that they should

Ask Your Lender: Question 1

Check out this video and make sure you ask your lender this question before you commit to them. Every experienced lender should know where interest rates come from to determine when to lock or float a rate.

Shopping Around: Step One

Shopping for a home loan is a very important task that is not really talked about or taught.
Selecting a mortgage may be the most important financial decision you will make. Most likely, you will be paying off this debt for years, and after all, a small difference in the mortgage rate can make a big difference in monthly payments. We hope the following will help you shop for a mortgage most effectively.

First of all, if you plan on shopping around for a mortgage it is highly recommended that you take the time to order your credit report from all three credit reporting agencies and check it for errors. An inaccuracy you aren’t aware of could cost you thousands of dollars in extra interest or even cause a denial of credit; it is estimated that 50% of all credit reports contain errors significant enough for an individual to be denied a loan!

Secondly, tracking interest rate movements is recommended when shopping for a mortgage. Find out what current mortgage rates are and whether they are going up or down. Mortgage rates fluctuate frequently. One month they are up, the next, down. It is very rare that they remain constant for any lengthy period of time. There are many factors affecting rates and it is often difficult to accurately predict interest rates as the national economy itself, but an understanding of key economic indicators can provide clues to the future direction of interest rates.

Mortgage rates generally rise and fall along with yields on Treasury notes and bonds because those government securities reflect the overall direction of interest rates. By keeping an eye on Treasury market and mortgage market trends a borrower has a better chance of obtaining interest rate savings.

Thirdly, before you begin shopping for a mortgage, you should decide which mortgage program is the best for your situation. A mortgage is a major purchase, so it is important to know that you have the right program for you. Today’s market offers borrowers a tremendous choice of loan products and new opportunities that never existed before, so it pays to educate yourself on the different types of loan programs first.

Choosing the right type of mortgage requires you to review your financial objectives and ask a host of questions, such as:

* How long do you plan on staying in the house or with the loan?
* What amount of monthly payment can you comfortably afford?
* How much money do you have for a down payment?
* Is paying the mortgage off early important?
* Do you intend to make extra principal payments?
* Is your income projected to remain stable or increase?

Your personal expectation for the future of interest rates, your tax bracket and adversity to risk are also important factors to consider when choosing a mortgage loan.

Once you have decided to go with a certain loan program, and find out current interest rates, you can begin shopping interest rates among lenders. To find the best possible deal, you should do some research and compare the mortgages offered by several lenders before you commit to borrow. It isn’t always easy to compare loans because your mortgage rate is only one part of your mortgage loan. You should also compare points and other fees. There are a number of different fees involved in getting a mortgage that can add thousands of dollars to the cost of your loan, and some lenders have different names for them. One lender might offer to waive one fee and then add another one. Comparing what different mortgage brokers and lenders are charging you to get an interest rate is often the most difficult part of mortgage shopping.

Before deciding which mortgage to get, look at the whole product. Pay close attention to the terms of a loan including the type of the mortgage, the presence of prepayment penalties, low or high down payment, mortgage insurance requirements, payment schedule, lock-in period and many other features. Pick the loan with the rate and other terms that suit your situation best. For example, prepayment penalty clause can be very important if you are planning to sell your house or refinance in the next 3 – 5 years, or if you expect to prepay your loan.

Once you have decided to go with a certain lender (or broker), ask him to specify the documents you will be required to provide for the approval process. Find out also whether the loan application and the lock-in fees, if any, are refundable if your application is rejected.

When To Lock Your Mortgage Rate

When is the Best Time to Lock?
When it comes to mortgage loans and interest rates, it’s never a good idea to
gamble. That’s why I typically advise my clients to lock in an interest rate at the
earliest opportunity. This is just one step of the standardized system we have put
in place to ensure the best possible loan experience for each borrower that we work with.
A mortgage loan cannot be closed without a locked-in rate, and there are three
main elements to take into consideration:

* Interest Rate
* Points or fees
* Length of the lock

Locking in a rate does not obligate the borrower to commit to the loan until the loan
is actually closed. The lock is merely a security measure designed to eliminate the
risk of market volatility throughout the duration of the purchase or refinance
transaction. As long as the loan is approved and funded before the end of the lock
period, the borrower will receive the interest rate quoted.
When a lender permits an extended lock-in period, the borrower will likely face a higher interest rate or additional fees that
could be quoted as points. In other words, the borrower pays for the lender to take on the extended risk of being exposed to
potential changes in the market.
For example, let’s say a 30-day rate lock commitment costs the borrower one-half point, while a 60-day rate lock commitment
costs one full point. If the borrower in this scenario needed the extended lock period, but did not want to pay points, then an
alternative would be to accept a slightly higher interest rate. In this case, a 60-day lock would typically have a higher interest
rate than a 30-day lock.
Our standard procedure is to lock in a rate as quickly as possible. My team and I want our clients to know that while interest
rates fluctuate daily, most lenders do not want to lose any business because of it. If a significant rally causes interest rates to
drop 0.25% or more, we know that we can most likely renegotiate the rate. In many cases, lenders prefer this option over
losing the loan to another lender. On the other hand, if we’d allowed our clients to sit on the fence and not lock in their rate
we would have exposed them to market volatility without a safety net. Then, if rates were to increase, the borrower might no
longer qualify for the loan they want – a situation that we want to avoid at all costs.

By knowing our clients’ needs and working intimately with them to make the right decisions early on, my team and I are proud
to say that we have helped them to achieve their home ownership dreams.