Jevon Domench

One of the additional problems in our industry today is that investors are unable to obtain financing for their rental homes if they have more than 5 financed properties in their name(s). All major banks, credit unions and other outlets have completely shut down the availability of funds to those individuals.

HOWEVER...I have a solution! After extensive research, numerous phone calls and an exhausting search, I have found a source for these!

Intrigued? Want more information? Call or e-mail me- this is not a lost leader ad. This can be done and we have already successfully closed transactions with this company. I hope that this can provide some relief to those stuck in adjustable rate mortgages, Option ARM's., etc. We have a way out!!!!

Jevon Domench

Senior Mortgage Advisor

Summit Mortgage Corporation

(360) 921-6686

Have you seen the latest headlines?

The US Treasury is working on a new plan to help revive the ailing housing market by reducing mortgage rates on new home loans, according to people briefed on the situation. The plan, which is at preliminary stages and could change, would involve using government-sponsored mortgage financiers Fannie Mae and Freddie Mac to push down rates on 30-year mortgages to as low as 4.5%, or almost a full percentage point lower than current levels.

What does this mean to you and the people you know and care about? It means you have a window of opportunity that is unprecedented to purchase or refinance. I have had NUMEROUS calls over the past week asking me questions about this rate drop. Here is my advice to you:

•1) Don't wait! If rates get as low as they say, the turn times from lenders and banks is going to be atrocious. Rates are @ 5% today and turn times have already tripled. Back in 2003 when we had sub-par 5% rates for 2 days, the turn times in underwriting went to 45 days or more. Can you imagine how backlogged it will be now? We have ¼ of the banks, 1/3 of the staff at these institutions and much stricter guidelines for the underwriters to follow. If you plan on taking advantage of this opportunity, and everyone should, contact me directly ASAP and I will get you started in the right direction. We are quite busy ourselves, but I guarantee you fantastic service and a call back within 24 hours.

•2) For those of you waiting to see if our government actually institutes a plan to bring rates to 4.5% you will miss the boat. Once you read the paper, listen to the news, etc. and see that it has happened, the system will be so jammed with loans that not only will you miss out on that rate, but probably 5% as well. Act now before this opportunity passes you by.

This is an unprecedented time and an opportunity EVERYONE should explore. Bad credit? Not sure your home is worth what you owe? We have programs and options for virtually everyone- contact me today to find out what we can do for you!

Interest Rates
When is the Best Time to Lock?

I always advise my clients to lock in their interest rate at the earliest opportunity. Gambling with a client's interest rate is never advisable. In my business, I have a standardized system in place that we adhere to for all of our clientele.

A mortgage loan cannot be closed withour locking in a rate, and there are three main elements to take into consideration:

1) Interest Rate 2) Points 3) Length of Lock

Locking in on a rate does not obligate the client to commit to the loan until the loan is actually closed. The lock simply eliminates any risk of the borrower being exposed to market volatility. It provides the security of having to complete the mortgage and Real Estate transactions with some sense of order. The lender must disburse funds to complete the transaction within the rate-lock period, or else the original commitment to provide a loan at a certain interest rate will expire.

When a lender permits an extended lock-in period, the borrower will usually see either a higher interest rate or more points associated with the loan. The lender does this to minimize their own exposure to market volatility; hence the borrower pays for the lender to take on this risk.

For example, a 30-day rate lock commitment may cost the consumer one-half point, while a 60-day rate lock commitment could cost 1 full point. If the borrower needed an extended lock period, but did not want to pay points, the lender could make up the difference in the interest rate. In this case, typically, a 60-day lock would have a higher interest rate than a 30-day lock.

In my business, our standard procedure is to lock in a rate as quickly as possible once we have received the loan application. My team and I let our clients know that while interest rates fluctuate daily, most lenders do not want to lose any business. We know that in many cases, if there is a significant rally in the market that causes interest rates to drop 0.25% or more, we can ask the lender to renegotiate the rate. Often the lender allows for a renegotiation to avoid potentially losing the loan to another lender.

If we allow our clients to sit on the fence and not lock in a rate quickly, we would leave them exposed to market volatility. Then, if rates do increase, the borrower may be unable to qualify for the loan they want, which is a situation we try to avoid at all costs.

By knowing our clients' needs and working intimately with them to make the right decisions, my team and I are proud to say that we have many clients who are raving fans.

I was asked by a fellow industry professional about how to separate yourself from the competition in this ever shrinking market. My response was concerning the 203K FHA loan. Below is what I had posted and I hope it can create success for you as well:

"There has been a significant increase in the use of the FHA Streamlined 203K loan program recently. We held a seminar for industry professionals (Realtors and lenders) nearly 6 months ago and it was a novel concept to all in the room at that time. We presented it from the angle that this is a way to make the most of the market that we are in. A few individuals chose to run with the concept and develop a market niche and have done quite well recently. With the amount of foreclosures on the market, this is a tremendous tool to have available to borrowers. We have about 25 lenders currently offering the program to us, but about 3 of those do it heads and tails better than anyone else out there. If you have any further questions, please do not hesitate to give me a call..."

For those of you who have been struggling with the news of DPA going away, fear not! A solution might be just around the corner:

Washington, DC - September 16, 2008
By: Nehemiah Corporation of America

A Bill that would save seller-funded downpayment assistance from being eliminated on October 1 passed the House Financial Services Committee today on a voice vote amidst strong bipartisan support. The Bill, The FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008, or H.R. 6694, is expected to move to the floor for a full vote in the coming days.

"We continue to believe that reinstating downpayment assistance (DPA) will ensure that working-class families that have nowhere else to turn for help will still be able to own a home," said Scott Syphax, president and CEO of the Nehemiah Corporation of America, the largest and oldest provider of downpayment assistance. "The strong bipartisan support demonstrated during today's hearing speaks to the growing sentiment that the original Housing Bill was wrong to ban DPA. As H.R. 6694 continues to move through the House and onto the Senate, we urge members of Congress, like so many others, to vote to ‘amend - not end' these important programs and correct the mistake made through the initial ban."

The October 1 ban was written into law by President Bush when he signed H.R. 3221 Housing and Economic Recovery Act of 2008 on July 30, 2008. H.R. 6694 was introduced in the House of Representatives by Congressmen Green, Miller and Shays and Congresswoman Waters on July 31, 2008. If enacted into law, it will allow downpayment assistance to continue indefinitely.