Chris L. Sauceda

Who knows when we'll see the 4.5%

We've been hearing about the 4.5% Rates. However, the time for that is not now, according to Leading Mortgage Expert, Barry Habib. With the economy in shambles and the American public waiting for their chance to save money, Habib says that Mortgage Backed Securities (MBS) are more stable than ever.

Mortgage Backed Securites are what directly effect Mortgage rates. You have to be very careful when trying to trust loan officers that say the 10-Year Treasury Note is what directly effects rates. These are the ones who give the mortgage business a "bad name."

This is what to watch for when you following rates closely. This is how MBS affect rates:

- When MBS are moving lower, Mortgage rates tend to go up.

- This rule works on a 4:1 Ratio; meaning that for every 100 basis points that MBS go up, Mortgage rates will drop .25 basis points (or a 1/4 percent in rate terms) & vice versa.

The government is currently buying $4 million in MBS per day & plans on buying MBS until June. Habib believes that until we see MBS bond pricing drop dramatically, rates are not going anywhere. He feels that rates will stabilize until the end of this quarter and start coming down when unemployment stabliizes and GDP comes back.

So, look for Mortgage rates to come down mid-March to early-April 2009. If you are in the Mortgage and/or Real Estate business, you better be ready and use the time between then to set yourself up for a plan when the old ball starts rolling again!

Until next time...Have a GREAT week & continue to Stay POSITIVE! If you keep your head up, you will be the one who prospers when the sun settles!

If you have any questions, feel free to call me...

Your Mortgage Professional & Friend,

Chris L. Sauceda

575.642.6901 Direct

chris.sauceda@officialmortgageteam.com

P.S. Ask me for a FREE Copy of My Book on all the "Too Good To Be True" Ads that Mortgage Companies & Banks get away with.

Proven Real Estate Scripts

Linda’s Three Keys to Real Estate Success:

1. You have to learn to make a fool of yourself and not care.

2. You have to learn to ask for business and not be attached to the answer.

3. You have to learn to state the obvious or common in emotionally powerful ways.

The Process for Learning Scripts, Dialogues and Power Phrases:

Memorize – understand it Internalize – know it Customize – do it Capitalize – have the power

The One Minute Listing Presentation: Mr. and Mrs. Seller I’ve written down three very important questions. May I ask them?

1. Do you absolutely have to sell your home?

2. Are you willing to price it to sell?

3. Would you like me to handle the sale for you? Great!

At the end of our meeting one of three things will happen:

1. You will decide to hire me to get your home sold. Or,

2. You will decide not to hire me. Or,

3. I’ll decide not to take your listing.

Any of those three is okay with me. Does that make sense? The Safe Island Mr. and Mrs. Seller, before we begin, would it be okay if I took a minute to tell you how I work? Basically, I use a four step process:

• First, I will ask you a series of questions so that I can get a clear picture of what you are trying to accomplish and how I can help.

• Second, I will give you enough market information for you to make a rational decision about the price to place on the property.

• Third, I will honestly sell you on me and my company and how we get the results we do.

• Finally, when you decide to hire me, I will tell you, step by step, all the things I will do to cause your home to sell. Would you like to get started?

The Five Questions:

1. How long have you lived at this address?

2. Where did you move here from?

3. How did you happen to pick this area?

4. If you were to move, where would you go next?

5. When would that be?

The Benefits of the MLS:

Mr. and Mrs. Seller, when you hire me to handle the sale of your home, I will immediately, tomorrow morning, notify all of the other Realtors in the area that your home is on the market, it’s best features and why they should bring their qualified buyers to see it. My Fiduciary Position: Mr. and Mrs. Seller, I am licensed by the State of _____________, to represent you in the sale of your home. And, to place your interest above the interests of all other parties, including my own. It is my professional commitment to get you the most money, in the right time, with a minimum of inconvenience to you and your family. Althea’s Advertising Script: Where will you be advertising our house? Let me educate you about how real estate really works. Ads don’t sell homes, Realtors do. And, I’m already investing half of my commission as an incentive for other agents to bring their qualified buyers to your home. As your real estate agent, I will never waste your money. And, I certainly wouldn’t waste my own.

The Jim Droz Getting to Know You Script:

Hi, I’m _______________ with _______________. I’m sorry to bother you here at home, but I have one question I’d like to ask, may I? It’s my goal to make this the best possible neighborhood to live in. What one thing could I do, or cause to be done, that would make this a better place to live? (they respond) Thanks for you time and your idea – I’ll do everything possible to see that it gets done. And, I’ll let you know what happens. Bye now – when you think of real estate, think of me!

Door-to-Door Around an Open House Script:

Hi, my name is ____________ and I’m with _________________. I wanted to let you know about an important event. I’ve been retained by Mr. and Mrs. _____________ at _____________, to handle the sale of their home. One of the special services I am providing to them is to personally invite you, as a neighbor; to an Open House I’m holding this ____________ at ______.

This is a great opportunity to determine who your new neighbor will be. Who can you think of that’s talked about moving to this area? Great, I’ll give them a call and personally invite them. OR Great, if you think of someone, be sure to give me a call or just bring them by the Open House. By the way, when we do this much marketing of a home, it brings any more interested buyers. So, this would be a great time for someone who needs to get there home sold quickly. Who can you think of that fits that description? Great, thanks for you time and your help. I think this is a great neighborhood to live in. When you think of real estate think of me!

Who do you work for? Tell them about your company…

Let me tell you about ________________! _______________ is the newest, most innovative and fastest growing national real estate company right here in Las Cruces. And, I’m with ______________ because, at ________________, I am a partner in the business. I get to share in the profits. I have a say in all the decisions. And, most important, I am empowered to do what ever it takes to best serve YOU!

“It’s what you do when you don’t have to that will determine what you become when you can no longer help it.” Floyd Wickman “The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty.” Winston Churchill If you have any questions or want more info from any of these sources, please Call me!!! INTEREST RATES ARE OUTSTANDING!!! TELL EVERYONE YOU KNOW… Best Regards, Chris L. Sauceda

Written By Chris L. Sauceda

Rates are low, but expect to pay more fees for a mortgage today

Mortgage rates are low, but getting them is going to cost you. New rules by Freddie Mac and Fannie Mae are upping the fees for borrowers with less than perfect credit, those in the mortgage industry say. Other increased costs reflect the uncertainty in the mortgage market, as lenders try to reduce their risk and anticipate rates. "It's an interesting time, in that mortgage rates are historically low," said Amy Bohutinsky, vice president of communications for Zillow.com. "But at the same time, while rates are low, lending standards are still really tight. What that means is that people who qualify for these really good rates... fall under a strict and narrow set of guidelines." Even borrowers with decent credit aren't immune to higher fees and mortgage costs. In general, to get the low rates that make the headlines, borrowers also are often paying more points, or prepaid interest, that bring the mortgage rate down.

Pricing Changes

If you look at where mortgage pricing was a year and a half ago, and where it is now, "there have been a slew of changes, mostly negative from a borrower's perspective," said Rick Allen, vice president of MortgageMarvel.com, a mortgage Web site. The most recent changes started to show up in lenders' rate sheets this year. New risk-based pricing from Freddie Mac and Fannie Mae adds fees to mortgages based on a borrower's credit score. In order to avoid the extra fees, borrowers need to have a FICO score of 740 or higher, said Dan Green, loan officer with Mobium Mortgage in Cincinnati and author of TheMortgageReports.com. The new rules take effect in April at Fannie and Freddie, but lenders incorporated them into rate sheets by the middle of January, he said. The new fees, called Loan Level Price Adjustments, have been an unwelcome surprise for some homeowners interested in taking advantage of low rates. "It has created a different pricing scenario from one consumer to the next," Allen said. "What you see in the Sunday paper could be perfectly close for one borrower. The guy next door could be 1% higher." Charges have also gone up for those who extract equity from their home through a cash-out refinance, Allen pointed out. Condo financing could also involve added costs, Green said.

Paying Points

According to Freddie Mac's weekly rate survey, the average rate on a 30-year fixed-rate conforming mortgage was 5.05% in January 2009, and a payment of an average 0.7 point was required to obtain the rate. A year ago, the average rate was 5.76%, but it took less to get that rate -- an average 0.4 point was required. There's an inverse relationship between points and rate; the more points you pay, the lower the rate becomes. A point is 1% of the mortgage amount, charged as prepaid interest. "If the points are creeping up a little bit, it is a sign that lenders are looking for money up front as opposed to over time," Allen said. In general, government intervention in the mortgage market is making rates unpredictable, causing lenders to price more conservatively, said Julian Hebron, vice president and mortgage consultant at RPM Mortgage in San Francisco. Before paying points, consumers need to decide whether the move makes sense for them, or if they'd be better off obtaining a mortgage with a higher rate while paying zero points. The decision hinges on how long the borrower plans on staying in the home, and how long it will take for paying points to pay off, said Ethan Ewing, president of Bills.com. The more time a homeowner plans on staying in the home, the more that paying points makes financial sense. But Hebron noted that paying points gets borrowers a bigger discount these days. "Historically, one point in fee gets borrower a rate that's about 0.25% to 0.375% lower. Now one point gets the rate about 0.625% to 0.875% lower," he said in a recent analysis. Recently, Hebron could get a $417,000, 30-year fixed-rate mortgage at a rate of 5.625%, paying zero points. By paying one point (or $4,170) on the same loan, the rate went down to 4.875%, saving the borrower $261 per month in interest cost. "At this monthly savings rate, it takes 16 months to pay back the $4,170 and everything from that point forward is benefit," he said. "Traditional breakeven periods are double this."

Added Fees

Other fee increases for borrowers today include those on underwriting and processing, which range from $300 to $400 on average. It takes more work and expertise to process a fully documented file than the no-document loans that were popular a couple of years back, and that is reflected in the higher charges, Hebron said. Those attempting a refinance can also expect to pay an appraisal fee -- maybe $300 or so -- up front, Hebron said. Mortgage rate lock fees are also becoming more common, though it's not impossible to find a firm that will not charge for that service, he added. "For title and settlement fees, the fees that we are seeing the largest increases in are the real-estate transfer taxes charged by cities and counties," Ewing says. One tip for borrowers who are refinancing: Using the same title-insurance firm from your last mortgage will likely save money. In total, mortgage fees could cost you 3% or so of the loan amount, according to HSH Associates, a mortgage-information publisher.

It comes down to who you can trust in the Mortgage Business...

If you want to deal with an HONEST Mortgage Person, Call me today!

Drip-Marketing Campaigns for FSBO’s

Be There When They Seek a Professional's Help

Do-it-yourselfers will always be a part of our society. But for many people, there comes a time when the frustration of doing it on their own far outweighs the cost of calling in a professional.

When an individual who is trying to sell their own home arrives at this conclusion, you want to be the first person they call. This can be achieved by initiating a "drip campaign." To do this, you must have a series of letters, flyers, or handouts that you send consistently to your FSBO targets. Successful drip campaigns are clearly systemized, so the process is easy to follow.

There's no guesswork involved, and this can be easily delegated to one of your team members once the system has been set up. Here are a few tips for a successful FSBO drip campaign:

Tip 1: Send out tips that will help the seller learn more about how to successfully market their home. By providing this value up front, you show sincere interest in helping them sell their home.

Tip 2: Make certain your mail stands out from the other mail they receive. Printed envelopes generally get less attention than envelopes addressed by hand. It's also smart to include brief handwritten notes with each piece you send. Make sure your message is not delivered on a day when the usual junk mail and coupon mailers are distributed. You don't want to be lost in the shuffle.

Tip 3: Leverage technology such as databases and personalization software. Database management software simplifies the creation of personalized letters. It's not difficult to find a font that looks like actual handwriting, and conveys a personal touch.

These are some of the things I do as part of my campaign to market my services to FSBO’s. In many cases, people attempting to sell their own home become frustrated and end up turning to a professional Real Estate Agent.

Call me if you are interested in learning more about the co-op marketing opportunities I have to offer!

Top 5 Sand Traps of Real Estate

Written by C.L. Sauceda

1. Lack of Clear Vision – WRITE IT DOWN! Write your ideas down and decide what you want to do with them. Don’t divert your attention on several things and get no where. Write out what you want to accomplish!

2. Too Many Unfulfilled Resolutions in Life – You have great ideas & a great plan. Carry them out! The reason people have unfulfilled resolutions in their lives is because people are more willing to break a promise to themselves than to break a promise to someone else. So it’s a lack of accountability. Develop great SELF-DISCIPLINE!

3. Lack of Taking Action – Get around to everything that you said you would! DO NOT care what people think if you fail. The fear of what somebody else thinks should not hinder your action. TAKE ACTION NOW!

4. Desires – DO YOU REALLY WANT IT? Realize what you are saying when you say “I want _________.” The definition of want is when you have such desire to achieve that want and willing to pay that sacrifice or whatever you have to do to accomplish it…otherwise, it falls into the category of “It would be nice if _________.” Decide which phrase you WANT. No more excuses. Simply change your views on your desires and make it happen!

5. Lack of Focus – “What you focus on the LONGEST will definitely become the STRONGEST!” Focus on what you want to accomplish and do it. Put aside whatever anyone thinks of you, the sacrifices that you may have to endure, and focus on what you are going to accomplish! Focus on something hard and stick to it!

“When it comes down to it, you control your destiny, NOT your culture, personality, friends, family, etc…You are the CEO of your life! Follow these steps and you will be successful. You are the one who controls your destiny. Remember, it’s not what you know, or who you know, IT ’S WHO KNOWS YOU! Take action!” – C.L. Sauceda –