www.mountainupdate.com

Fannie and Freddie Take Over... What does it Mean?

Steven Keefe, Broker/Owner
Coldwell Banker Sky Ridge Realty 
Arrowhead Home Loans, Inc.
www.mountainmoves.com
steve@mountainupdate.com
909.336.2131

What does the federal takeover of two mortgage finance giants mean to consumers? 

The government hopes that its plan will bring down mortgage rates by removing doubts about Fannie and Freddie.  Treasury Secretary Paulson hopes to make investors feel confident about buying the companies mortgage-backed bonds.

Jerry Howard, executive vice president and CEO of the National Association of Home Builders (NAHB), today issued the following statement on the government's plan to place Fannie Mae and Freddie Mac into conservatorship:

“While it is unfortunate that we have reached this point, we are hopeful that the government's action on Fannie Mae and Freddie Mac will help to increase liquidity in the nation's mortgage markets and restore confidence in the global financial markets.  At this critical turning point, it is essential that government regulators and all parties involved in the nation's housing finance system work together to rebuild the nation's secondary mortgage market - a move that is absolutely vital to provide affordable mortgages for America's home buyers and to help spur an economic recovery.”

What could happen next?

If you are thinking of buying a home or refinancing a mortgage, the government takeover will help stabilize rates.  They might even fall a quarter of a percentage point or so, now that the government has stepped in to make its backing of Fannie and Freddie more transparent.

Rates certainly matter in persuading people on the sidelines to step in and start shopping for a home.  The interest rate you pay for a mortgage depends in part on the rules that Fannie and Freddie set for the kinds of loans they will buy.  Now that they have new bosses in the federal government, the rules could change, but may not change for a few months, until after the November elections.

New Loan Product From Arrowhead Home Loans

Thomas Crate
Loan Consultant
Arrowhead Home Loans, Inc.
tom@arrowheadhomeloans.com
909.744.0455 Cell Phone

Do you want to buy a home with no down payment? 
Do you have some cash but do not wish to exhaust all of it to buy a home?   
How many times have you been pre-qualified only to realize that the mortgage insurance or higher interest rates keep you out of the price range needed to accommodate your family?   
Rural Development may be able to help!

No down payment and no cash reserve requirements help you qualify.

• Competitive 30 year fixed rates and no monthly mortgage insurance allows you affordable payments.
• Flexible credit and qualifying ratios can help open up new opportunities.
  Rural Development assists thousands of people annually to become homeowners.

For more information or to get pre-qualified, please call Arrowhead Home Loans at (909) 336-1793.

Fed Again Cuts Interest Rate

Thomas Crate, Mortgage Broker, Arrowhead Home Loans, Inc.  "The Mountains Trusted Mortgage Advisor."

For any and all mortgage related needs contact Thomas Crate at Arrowhead Home Loans, Inc.  909.744.0455

Economic Stimulus Package Passes the Senate

Tom Crate, Mortgage Consultant
Arrowhead Home Loans, Inc.
tom@arrowheadhomeloans.com
(909)  336-1793  Office
(909) 615-3987 Cell

With an 81 to 16 vote, the Senate passed an amended version of H.R. 5140, a $150 billion plan to jumpstart the economy with temporary tax breaks for consumers and businesses, extended benefits, and most importantly, two provisions designed to assist the housing market.

According to CNN, the House is expected to consider and pass the amended bill as early as tonight, which could put the bill on the President’s desk as early as Friday.

The bill temporarily increased the size of loans that may be purchased by Fannie Mae and Freddie Mac, raising the current level of $417,000 to reportedly up to $730,000 in the highest cost regions of the housing markets. The bill also increases the size of loans the Federal Housing Administration could insure.

Rest assured, Arrowhead Home Loans is following this story closely and is hard at work evaluating the resources you’ll need to make the most of this important legislation once it actually becomes law.

To your success,

Arrowhead Home Loans

Tom Crate, Mortgage Consultant
Arrowhead Home Loans, Inc.
tom@arrowheadhomeloans.com
(909)  336-1793  Office
(909) 615-3987 Cell

With an 81 to 16 vote, the Senate passed an amended version of H.R. 5140, a $150 billion plan to jumpstart the economy with temporary tax breaks for consumers and businesses, extended benefits, and most importantly, two provisions designed to assist the housing market.

According to CNN, the House is expected to consider and pass the amended bill as early as tonight, which could put the bill on the President’s desk as early as Friday.

The bill temporarily increased the size of loans that may be purchased by Fannie Mae and Freddie Mac, raising the current level of $417,000 to reportedly up to $730,000 in the highest cost regions of the housing markets. The bill also increases the size of loans the Federal Housing Administration could insure.

Rest assured, Arrowhead Home Loans is following this story closely and is hard at work evaluating the resources you’ll need to make the most of this important legislation once it actually becomes law.

To your success,

Arrowhead Home Loans

Tom Crate, Mortgage Consultant
Arrowhead Home Loans, Inc.
tom@arrowheadhomeloans.com
(909)  336-1793  Office
(909) 615-3987 Cell

With an 81 to 16 vote, the Senate passed an amended version of H.R. 5140, a $150 billion plan to jumpstart the economy with temporary tax breaks for consumers and businesses, extended benefits, and most importantly, two provisions designed to assist the housing market.

According to CNN, the House is expected to consider and pass the amended bill as early as tonight, which could put the bill on the President’s desk as early as Friday.

The bill temporarily increased the size of loans that may be purchased by Fannie Mae and Freddie Mac, raising the current level of $417,000 to reportedly up to $730,000 in the highest cost regions of the housing markets. The bill also increases the size of loans the Federal Housing Administration could insure.

Rest assured, Arrowhead Home Loans is following this story closely and is hard at work evaluating the resources you’ll need to make the most of this important legislation once it actually becomes law.

To your success,

Arrowhead Home Loans

Proposed Mortgage Changes Could Offer Big Boost

Tom Crate, Mortgage Consultant
Arrowhead Home Loans, Inc.
tom@arrowheadhomeloans.com
(909)  336-1793  Office
(909) 615-3987 Cell

A component of the governments proposed enconomic stimulus package announced Thursday would give an immediate lift to buyers and sellers in higher priced housing markets such as California. 

The package agreed upon by leaders in both parties in the house would allow government sponsored Fannie Mae and Freddie Mac to buy mortgages 50% more than the existing conforming limit of $417,000.  The Senate and the White House must also sign off on the proposal before it becomes effective.

The higher cap of $625,000 would likely breath life into the California market by making very affordable mortgage money available.  As of today, the current conforming rates are at 40 year lows.  Some individuals with higher "jumbo" or non-conforming loans would be able to refinance to take advantage of these historically low rates.  Home buyers would benefit as extremely affordable interest rate scenarios would be freed up by this move.

Steve Keefe, Owner/Broker of Coldwell Banker Sky Ridge Realty and Arrowhead Home Loans said late Thursday "In my nearly 20 years in the business, this is one of the most proactive things, I have seen government do to address real issues.  Moving forward with this provision and following it up with a permanent adjustment will benefit consumers and offer meaningful economic benefit."

Buyers and sellers looking to find out more about what his happening in the current mortgage market should contact the professionals at Arrowhead Home Loans, Inc. at 909-336-1793

Tom Crate, Mortgage Consultant
Arrowhead Home Loans, Inc.
tom@arrowheadhomeloans.com
(909)  336-1793  Office
(909) 615-3987 Cell

A component of the governments proposed enconomic stimulus package announced Thursday would give an immediate lift to buyers and sellers in higher priced housing markets such as California. 

The package agreed upon by leaders in both parties in the house would allow government sponsored Fannie Mae and Freddie Mac to buy mortgages 50% more than the existing conforming limit of $417,000.  The Senate and the White House must also sign off on the proposal before it becomes effective.

The higher cap of $625,000 would likely breath life into the California market by making very affordable mortgage money available.  As of today, the current conforming rates are at 40 year lows.  Some individuals with higher "jumbo" or non-conforming loans would be able to refinance to take advantage of these historically low rates.  Home buyers would benefit as extremely affordable interest rate scenarios would be freed up by this move.

Steve Keefe, Owner/Broker of Coldwell Banker Sky Ridge Realty and Arrowhead Home Loans said late Thursday "In my nearly 20 years in the business, this is one of the most proactive things, I have seen government do to address real issues.  Moving forward with this provision and following it up with a permanent adjustment will benefit consumers and offer meaningful economic benefit."

Buyers and sellers looking to find out more about what his happening in the current mortgage market should contact the professionals at Arrowhead Home Loans, Inc. at 909-336-1793

Mortgage Market Update 12/04/07

Marty Sievers, CMPS, Senior Loan Officer
Arrowhead Home Loans, Inc.
marty@arrowheadhomeloans.com

909-709-7318 

There are no economic reports scheduled for release today. Stocks are presently trading slightly lower, which normally might push some money over into Bonds - but for now, Bonds are relatively flat after pulling back from a long-term ceiling of resistance at multi-year highs.

Last night, San Francisco Fed President Janet Yellen stated she is seeing a larger than expected economic slowdown take place since the last Fed meeting. Yellen is the third Fed official in the past week to suggest additional interest rate cuts might be required, in order for the economy to avoid a recession. Although Yellen is not currently a voting Fed member, she is highly regarded and influential, so her words will carry some weight with the voting members. Another cut on December 11th looks likely - and as we've been saying, the biggest question is the size of that anticipated cut. This Friday's important Jobs Report will probably give some clues. If the Jobs Report meets or comes in below current expectations of 70,000, we may see a .50% cut by the Fed. And that would not likely be well received by the Bond market, as a Fed Rate cut will spur additional spending by businesses and consumers alike, therefore driving inflation into the economy.

Bonds are still riding the "Up Escalator" higher, which means over the long term, pricing may continue to improve. However, in the short term, yesterday's pullback from long-term ceilings of resistance at multi-year highs could lead to some further selling pressure on Bonds. Additionally, the Bond has also pulled away from the 25-day Moving Average of late, which makes prices vulnerable to the "Leash Effect", meaning that the Bond could be pulled lower back down towards the 25-day Moving Average ... just like a dog on a leash that has strayed too far from its owner. You can clearly see this by looking at the Bond Page with the 25-day Moving Average displayed. Once Bond prices drift away from the 25-day MA, it often gets reined back in by this "leash effect".

For all your Mortgage Related Needs, Please Contact me at Arrowhead Home Loans, Inc.

Marty Sievers

Information published by The Mortgage Market Guide

Mortgage Rate History

Steven Keefe, Broker/Owner
Coldwell Banker Sky Ridge Realty
Arrowhead Home Loans, Inc.
www.mountainmoves.com
steve@mountainupdate.com
909.336.2131

The following chart shows historical information for average mortgage rates by year for the last 35 years.  As you can see the current interest rates are among the lowest in history.

30 Year Fixed Rates Since 1971
Yearly Average
Year	Rate	Points
2007	6.38%	0.43
2006	6.41%	0.5
2005	5.87%	0.6
2004	5.84%	0.6
2003	5.83%	0.7
2002	6.54%	0.6
2001	6.97%	0.6
2000	8.05%	0.9
1999	7.44%	1
1998	6.94%	1
1997	7.60%	1.1
1996	7.81%	1.7
1995	7.93%	1.7
1994	8.38%	1.8
1993	7.31%	1.8
1992	8.39%	1.6
1991	9.25%	1.7
1990	10.13%	2
1989	10.32%	2.1
1988	10.34%	2.1
1987	10.21%	2.1
1986	10.19%	2.2
1985	12.43%	2.2
1984	13.88%	2.5
1983	13.24%	2.5
1982	16.04%	2.1
1981	16.63%	2.2
1980	13.74%	2.1
1979	11.20%	1.8
1978	9.64%	1.6
1977	8.85%	1.3
1976	8.87%	1.1
1975	9.05%	1.2
1974	9.19%	1.1
1973	8.04%	1.2
1972	7.38%	0.9

5 Things You Should Do Right Now if You Have an Adjustable Rate Mortgage

Steven Keefe, Broker/Owner
Coldwell Banker Sky Ridge Realty
Arrowhead Home Loans, Inc.
www.mountainmoves.com
steve@cbskyridge.com
(909)  336-2131

I get stopped daily by folks that have adjustable rate mortgages that are going to adjust on them in the near future.  The comments come from people with both subprime and prime loans; and the concern is the same: “I can afford the payments now; I may not be able to when they change.”

I’ve put together this list of 5 things to do right now if you are in an adjustable rate mortgage so that you can better manage what needs to happen before your rate changes.  I recommend starting this process at least 75 days from your adjustment date; however, if you have credit issues I recommend starting right away - regardless of your reset date.

1.  Determine your rate adjustment date. Find your loan documents, determine what type of adjustable rate mortgage you have and when it is set to adjust.  If you don’t know how to read your loan documents make contact with one of the professionals at Arrowhead Home Loans to assist you in deciphering the documents.   If you can’t locate your mortgage documents you can contact your mortgage company through their customer service number.

2. Determine what your new interest rate and monthly mortgage payment will be.  Once again, if you don’t know how to calculate the new payment will be, AHL can assist you in that calculation. 

3. Determine your credit score. You can do this by running a credit report there are any number of sites on the internet that you can pull credit and determine your FICO. 

4. Determine your home value.  You can do this in a variety of ways.  The easiest (and most accurate) way is to contact one of the professionals at Coldwell Banker Sky Ridge Realty and ask for a market evaluation of your property.  Be straight up with them… let them know  that you are working with Arrowhead Home Loans to get out of the adjustable rate mortgage you currently have.  You will find the agents to be helpful as they know that future business is there for them if they help you out.. 

5.  Pull together your income, asset and credit information. You’ll want to consider refinancing options if your rate is going to adjust and the best way to begin that process is to have everything together before you start talking to people.  You’ll want to get your documentation together first.  The more prepared you are, the easier the process will go and the best rate you will get.

For more detailed information on loan products, options that are available, or assistance in evaluating your adjustable rate mortgage, contact Arrowhead Home Loans, Inc.

Tom Crate
(909)  336-1793
tom@arrowheadhomeloans.com

Marty Sievers
(909) 709-7318
marty@arrowheadhomeloans.com

8 Things You Need to Have to Get a Home Loan

Marty Sievers, CMPS, Senior Loan Officer
Arrowhead Home Loans, Inc.
marty@arrowheadhomeloans.com

909-709-7318

Getting a mortgage home loan might seem like a tedious process, but if you do your part to look good on paper, you can increase your eligibility for the best interest rates. Financial institutions primarily consider three main areas in determining who is eligible for a mortgage: employment history, credit history, debt to income ratio (which is the percentage of income that goes to expenses). As proof of these, most financial institutions will ask for a selection of the following documents in considering your request for a mortgage loan.

Employment

1. Last two years’ federal tax returns and/or W-2 statements financial institutions typically use your past tax returns as verification of your employment and earnings.

2. Pay stubs: Most financial institutions will ask to see your most recent pay stubs, usually covering the past month. Your pay stub must have your name, your social security number, your employer’s address, and your year-to-date earnings. These help them to gauge whether you will be able to handle your monthly mortgage payments.

3. Employment history: While your pay stubs provide your financial earnings, your employment history gives the financial institution an idea of the nature of your employment. Generally, a record of steady employment is going to work in your favor.

4. Credit History: Credit report, including current creditors and account information. A credit report, including a list of your current creditors and the corresponding account information is useful to a financial institution because it allows them to see how you have dealt with your past loans. This list should include the details (i.e. minimum monthly payment and balances) of all student loans, auto loans, credit cards, and child support payments.

By establishing a solid credit history, you can avoid having to pay higher interest rates that frequently accompany subprime mortgages.

Expenses and Payments

5. Bank statements: In order to verify your banking assets, financial institutions will most likely want to see up to three months of your most recent bank statements.

6. Complete record of assets: Additional assets that should be reported upon applying for a mortgage loan should include mutual funds, retirement accounts, real estate titles, and stock certificates. These not only promote your qualifications as a worthy risk for the financial institution, but they can also help you secure a lower interest rate.

7. Canceled rent checks: If you are currently renting, canceled checks that were used to pay rent can be proof that you are punctual with your payments. Some financial constitutions may ask for the name and address of your landlord instead of the canceled checks.

8. Information about desired property or property type. Providing the financial institution with a description of either the property you want to finance or at least a description of the property helps the financial institution decide if any of the loan programs would be right for you.

Having these documents gathered and ready to go when you are in the process of shopping for a new home will help your mortgage application process go smoothly. Permission is granted to reprint this release in part or in its entirety as long as source credit is properly listed..

Mortgage Broker vs. Mortgage Banker

Steven R. Keefe, Broker/Owner
Coldwell Banker Sky Ridge Realty
Arrowhead Home Loans, Inc.
www.mountainmoves.com
steve@mountainupdate.com
(909)  336-2131

Mortgage Banker vs. Mortgage Broker

Here are two questions that haunt home buyers: Should I use a mortgage broker or go with a banker? And what's the difference, anyway?

The short answer to the first question is this: It doesn't matter much whether you use a broker or banker. You can get a good deal with either. The important thing is whether you get a good rate and pay fair closing costs, not who you get the loan from.

The majority of people find that better deal with mortgage brokers. About 65 percent of home loans are originated through brokers.

From the consumer's standpoint, there's not a whole lot of difference between a mortgage broker and a mortgage loan officer for a bank. Both of them describe the various loan types that are available and help the borrower choose one, collect the application and supporting paperwork, and keep in contact with the borrower until closing day.

The main difference behind the scenes is that a mortgage banker lends the bank's own money. The loan officer's employer -- the bank -- decides whether to underwrite the loan and at what rate and terms. This can be a disadvantage, because in most cases the banks products are limited to what the bank offers.

A broker doesn't lend his or her company's money. The broker funds the deal through a lender and does much of the paperwork, but the lender decides whether to underwrite the loan and at what rate and terms. The broker doesn't make those decisions.  Brokers generally have a much broader availability of product than does a banker which may be very important in the current mortgage climate. Additionally, the broker may have more flexibility with rates and fees than does the banker.

For information on financing options and and for expert advice contact Arrowhead Hiome Loans, Inc.

Marty Sievers, 909.709.7318, marty@arrowheadhomeloans.com

Tom Crate, 909.336.1793, tom@arrowheadhomeloans.com