Dean Davidson ABR/CSP

What a way to end the year, or better yet begin a new year for the housing industry.

Here's a sample of Primary Home Purchase money rates today, up to 0+1, with escrows for a borrower with median credit of 720-760. These are subject to vary based on loan amount, occupancy, LTV, credit quality and other factors.

Conforming (using 250K as amt)

30 yr fixed 5.00%

15 yr fixed 4.625%

5/1 ARM, 30 yr am 5.00%

Jumbo (using 650K as amt)

30 yr fixed 7.00%

15 yr fixed 5.25%

5/1 ARM, 30yr am 4.875%

Super Jumbo (using 1M amt)

30 yr fixed 7.25%

15 yr fixed 5.25%

5/1 ARM, 30 yr am 4.875%

Compliments of Ashleigh Sumlin, Braddford Mortgage Company, 704-373-2289

The longer this business downturn runs on, the uglier it is getting. It is affecting so many different aspects of our economy now, it is going to take longer to work our way out of it. And too many are getting the idea that they can get a piece of the bail out pie, just because it's there.

The most shameful of it all is that the entities and people involved with them that created this mess are acting like they are inocent bystanders, and that it is the Bush Administration's doing. Let's make this perfectly clear...nothing is farther from the truth. President Bush warned Fannie Mae, Freddie Mac, and the Congress in 2001 that Fannie Mae and Freddie Mac needed regulating. No one wanted to listen because they were either getting fat of the loan packages being sold, or they just didn't have a clue in the first place about how the mortgage industry worked. Some that I mentioned that were getting fat and didn't want to see regulation were, Barney Frank, Chris Dodd, Charles Schummer, Barrack Obama, to name a few, as well as the heads of those two government sponsored entities.

How Fannie Mae and Freddie Mac got into trouble was due to the subprime loans being forced down lenders throats by the Clinton Administration, who believed home ownership is a right rather than privilege, and was dead set in seeing more people buy homes that were not ready for that responsibility.

Builders, as well jumped on that bandwagon because it helped them relieve themselves of their number one asset, their land/lots. They relieved that asset by building and selling homes with them. It was a snowball out of control. And let me remind those that read my blog, your current President warned the mortgage markets, and Fannie Mae & Freddie Mac in particular, that they were headed for a fall.

Ah, you say, why did the Bush Administration go along with bailing out Fannie Mae and Freddie Mac? Because it is a government sponsored entity, holding over 50% of the mortgages at any time. This is not a private enterprise, and the government, who we are all a part of, was compelled 'to bite the bullet.'

Before all this came down, the economy was generally strong. People had not started losing jobs as we now are, due to the numbers of people employed in the construction/supply businesses. The stock market was stable, and the only real negative, daily, was the cost of gasoline, which brings me to my last point about our situation and current leadership.

Crude oil and our gasoline prices have been steadily dropping since President Bush just mentioned lifting the ban on offshore drilling, back in July. Check it out. I suggest he knew very well the pain the nation had to suffer, before the public outcry to expand our own search for fossil fuels right here at home, began to be heard.

As you look back at the last few months, it hasn't been the President elect, or this very impotent Congress we have in Washington, that has been leading us through the tough choices, and necessary action. It has been your current President.

I hate to think where we would be today if the 72% of the public who disapproves of his leadership, had been making the decisions. History, I believe will treat him better.

To solve problems, you first must understand them.

All the best for 2009.

November 13, 2008

Friends in Real Estate,

2009 Conforming Loan limits will remain at $417,000, the 4^th consecutive year at this level. What is a Conforming loan? A loan that "conforms" to Fannie Mae or Freddie Mac guidelines.

The stock market rally drew funds away from mortgage backed bonds and we had a late day rate increase. Volatility is still the rule.

Here's a sample of Primary Home Purchase money rates today, up to 0+1, with escrows for a borrower with median credit of 720-760. These are subject to vary based on loan amount, occupancy, LTV, credit quality and other factors.

Conforming (using 250K as amt)

30 yr fixed 6.00%

15 yr fixed 5.625%

5/1 ARM, 30 yr am 5.375%

Jumbo (using 650K as amt)

30 yr fixed 7.5%

15 yr fixed 5.625%

5/1 ARM, 30yr am 5.25%

Super Jumbo (using 1M amt)

30 yr fixed 7.875%

15 yr fixed 5.625%

5/1 ARM, 30 yr am 5.25%

Compliments of Ashleigh Sumlin, Bradford Mortgage Company, 704-307-9908

After almost a year of declining home prices, incredible buyer incentives on home purchases, and for the most part, stable or falling mortgage interest rates, we still have large inventories, pent up buyer demand, and not appreciable movement in the market. Buyers are not taking advantage of a buyers market.

Due to the lackluster activity, if not buyer apathy, we have thrown the entire US economy in a tailspin, where every industry and trade associated with home building is suffering. Unemployment continues to rise, and businesses that once supplied the industry are in deep trouble, some already closed.

The public, the average consumer, particularly those that are in the market for a home, must realize they are the only force that is going to lead us out of this recession. It's the way it's always been, since WWII. When we stop buying what our neighbor is making or selling, we risk depression. Many think the longer they wait, the better the deal they will get. Wrong!! Unless you have a crystal ball, catching any market at the bottom of its curve is difficult for the professional speculator, much less the average homebuyer.

The reality is that the longer you wait, the more costly your purchase is likely to be. An increase of .5% in mortgage interest rates can equate to several thousand dollors in a homes comparable purchase price. Let's all hope that buyers will soon get off the fence and start the recovery of the real estate markets, and all the jobs, income, and purchasing power it creates for other businesses, like cars.

October 23, 2008

In the mortgage world a self employed borrower is one who receives income from a business they have 25% or more ownership interest. This can be the only source of income or a supplement to another job. The self employed borrower should expect a request for the most recent 2 years personal and business tax returns. Does this mean self employed borrowers cannot get a mortgage loan? NO! Just expect a full documentation process like everyone else is experiencing these days. Rates are the same for self employed borrowers as for salaried borrowers, but credit score requirements may be higher for the self employed depending on the loan product. Call me when you have a self employed client to discuss specific details.

Here's a sample of Primary Home Purchase money rates today, up to 0+1, with escrows for a borrower with median credit of 720-760. These are subject to vary based on loan amount, occupancy, LTV, credit quality and other factors.

Conforming (using 250K as amt)

30 yr fixed 5.875%

15 yr fixed 5.375%

5/1 ARM, 30 yr am 5.25%

Jumbo (using 650K as amt)

30 yr fixed 7.375%

15 yr fixed 6.000%

5/1 ARM, 30yr am 5.5%

Super Jumbo (using 1M amt)

30 yr fixed 7.5%

15 yr fixed 6.00%

5/1 ARM, 30 yr am 5.625%

Compliments of Ashleigh Sumlin, Bradford Mortgage Company 704-373-2289