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Libor spikes - Loan modifications - FHA down payment sources - Free appraisals

The LIBOR doubled on Tuesday. The London Inter Bank Offering Rate DOUBLED on Tuesday from 3.10625% to 6.43750%, the highest since April 2001. This was the result of banks seizing up, basically adding a risk premium for lending to each other. Obviously bad news for people with a Libor indexed ARMs. The good news is that the rate has come back down as governments stepped in to support the banking system worldwide. If you have a Libor ARM (or any other ARM), consider getting out! Contact me for a no closing cost loan.  Have a good week folks!.... Paul 

30-year fixed down for 5th consecutive week
"Rates for the 30-yr fixed fell for the 5th consecutive week, a total decline of about 0.75%" said Frank Nothaft, Freddie Mac vice president and chief economist. "As a result, mortgage applications surged nearly 58% since August 15th, largely led by a 122% gain in applications for refinancing, according to the Mortgage Bankers Association (MBA).  Freddy Mac rate surveys
1-3 week trend: Down   Market commentary
  
Loan modifications in full swing
If a borrower is unable to make mortgage payments, loan balance(s) exceed the property value, or a refinance is not possible for any reason - loan modication may be the answer. The property can be a owner-occupied or investment, residential or commercial. Don't go it alone! We have a dedicated team of negotiators who are connected with the decision makers. They know how to get a the "best deal", quickly, with no hassles!  Further information.
 
FREE APPRAISALS till December 31st!
I will pay for the appraisal on any new residential loan application made between now and Dec 31st, credited at the close. You can register your (or your client's) entitlement by requesting an online quote, or making application.
 
Zero down may be coming back
HR 6694 passed the House Financial Services Committee this week. Read about it - and lobby for it - here

Acceptable down payment sources for FHA loans
Looking for ways to come up with the down payment? You'll  be surprised. Gifts, loans, sweat equity, commissions, rent to own? There are 18 acceptable sources in all. Check it out.
 
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If you obey all the rules you miss all the fun.
Posted Friday Sep 19