Advice, Community & Common Sense

We are experiencing an amazing period in mortgages these last couple of weeks! The past three times I have made a "Rate Alert" blog post on a weekend, it has proven to be the best time to catch a brief 'dip' in interest rates. Tell your family, friends, neighbors and coworkers to ensure they also get the best with Emery!

In the world of mortgages, chaos and turmoil usually result in low interest rates and this month so far has proven that. We are recommending anyone that can refinance -- all of your family, friends and coworkers who are not already in process with us to refinance -- do so now to get locked into a lower interest rate before rates head higher from increased global debt loads.

I have outlined below some options for the low loan to value loans with higher credit scores and no 2nd mortgages to leave in place.

"No cost" loans mean that we pay ALL the closing costs and nothing is added to the principal balance. "0 points" means that there are no points but you will be responsible for 3rd party closing costs which are roughly $3,000 and can usually be added to the principal balance.

In between ball games and chores this weekend, take a minute to check-in with me by email here.

A sample range of available rates based on the scenarios I describe above:

• 30 Year Fixed: 4.875 % - 5.250 %
• 5, 7 Year Adjustable Rates (ARM): 3.750 % - 4.375 %

Hey, we all need a break today!  

Free stuff on tax day - click here. 

And since your Tax Preparer can't leave their desk today, spread some cheer by bringing one of these to them and making their day!

Enjoy!

More credits... more details.  See what's in store for California home buyers in 2010 here, directly from the State of Californina website. 

May 1, 2010 is a key action date! 

Contact us today to help you get ready to qualify. 

We're here to help! 

After today's bond market action, or reaction to increased fears may be more accurate, the market may be pulling back to "wait and see" with a vengence. Just look at this chart of today's trading of the 4.5% Fannie Mae coupon for April (MBS):

That long RED Candle at the right = a panic retreat and sell-off of MBS, and US Treasuries fared no better today.

Why?  Several reasons, and none are being helped by the Fed -- Fed MBS buying stops on March 31, 2010 -- next Wednesday.  They've warned and re-emphasized this in the last 3 FOMC meetings' policy statements.  It's here.

In case you missed this video below when first posted a month ago, next week the Fed is done buying Mortgage Bonds as of March 31. It's a great and brief 2-1/2 minute summary of the Fed's buying influence.  

Let's hope we don't see a 1.25% jump -- the equivalent of how much they dropped with the Fed's purchasing begun 14 months ago.  Courtesy of Jim Sahnger, Palm Beach Financial Network, Florida.  Thank you for producing this, Jim.

Tax Credits available!  Couple this with the $6,500 Homebuyer Tax Credit expiring at the end of April, and you're in for some real savings!!

If you are planning ahead for a home remodel, check out some of the recently announced IRS breaks at the National Association of Homebuilders' Website.

Notice the absence of "First Time" in front of "Home Buyer Tax Credit" -- the credit has been expanded to all buyers fitting the criteria outlined below.  Use it wisely!

Remember, this is your tax money being used.  Using it responsibly is the best way to neutralize the effects of the long-term increased debt load of our country, and keep the effects to our children minimal.

Below are the initial details, hot off the presses today for you to review:

Home Buyer Tax Credit Signed

November 6, 2009

Tax Credit for Home Buyers

First-Time Home Buyers ("FTHBs"): First-time home buyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount. Check with your tax advisor for full details, of course, in addition to the initial income guidelines below. 

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Tax Credit Versus Tax Deduction

It’s important to remember that the tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time home buyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Better still, the tax credit is refundable, which means the home buyer can receive a check for the credit if he or she has little income tax liability. For example, if a first-time home buyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

Higher Income Caps

The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

Joint filers who earn up to  $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price

Qualifying buyers may purchase a property with a maximum sale price of $800,000.

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Remember, the new tax credit program includes a number of details and qualifications. For more information or answers to specific questions, please call or email me today.

In addition, you may be able to benefit from additional housing related provisions, including the following:

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Tax Incentives to Spur Energy Savings and Green Jobs

This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.

Landmark Energy Savings

This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing

This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.

Expanding Housing Assistance

This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.

As always, if you have any questions about your specific situation or would like to discuss how you may benefit from this program, please call or email me.

The colors of the seasons are changing, it's that time of year again.  As most of you know, I am based in Southern California, so unfortunately, I don't get to enjoy the splendor of the autumn foliage in New England, or the beauty of the midwest's rolling plains.  The trade out is I don't have to shovel snow.

For those of us in SoCal at this time of year, we get to enjoy the drop of the Pacific from 69F to 60F, the daytime temps from 85F to 70F.  But the only color changes we see here to tip us off to autumn....the appearance of Holiday Starbucks cups.  They're out en masse here as of Sunday.  Along, of course, with Rogers Gardens' annual display of Christmas lights here in Newport Beach, also starting each year the day after Halloween.

So get your own $5 gift card for Starbucks, and help yourself at the same time.  How? Update your info here and we can alert you to savings possibilities as they happen for your specific situation.

Happy Autumn, to you and yours.

It is one of my goals to share quality insights about what is going on in today's "New Normal" economic climate, a term coined this year by the brilliant folks at PIMCO. 

Today's piece on "Quantitative Easing" comes from Custom House analyst, Karl Schamotta.  This term is tossed about in the financial media, and sounds big and scary initially.  Indeed, it can have impressive consequences and carries significant risks.  Mr. Schamotta provides an excellent summary of what it can mean to you and the global economy of the New Normal we're all living in today.

If the link above does not work through your browser or ISP, cut and paste this url into your browser, be sure to get it all, it's long:

http://now.eloqua.com/es.asp?s=930&e=9881&elq=0f56dabca7394e1f9f2dc0ccf3f72209

Until next, time -- Enjoy!

2 Topics, 1 posting - MHA 2009 Update & 

$729,750 Loan Limits are finally coming!

For MHA 2009:  Just a brief note to let you know we're analyzing the details of the latest "RefiPlus" plans by Fannie Mae, rolling out this week, and allowing for 80.01% to 105% Loan-to-Values ("LTV").  We'll be in touch with any of our current clients fitting the guidelines.  We've received many inquiries on this topic, so we're watching very closely and are focused on providing accurate information, not just the headlines.

The Obama Administration unveiled the final details of its "Making Home Affordable Program" on March 4, 2009.  We are summarizing key parts of the plan, and busy reviewing the ongoing details.  The plan, affectionately known as "MHA 2009", is designed to help up to 9 million American families refinance or modify their loans to a payment that is affordable now and into the future.  Details are still being released in stages, as are roll-out dates for the various refinancing options.  As of the update date indicated below, this represents what we know so far, with links to more details for each topic, either refinancing or modification. 

For Key Reference documents on both topics, click here.

As always, if you have any questions or would like to discuss how this may specifically impact you, leave a comment on the Blog, or email me to set up an appointment.