Joshua Burley

In case you have been in a cave for the past 2 years, the adjustable rate mortgage (ARM) has been unjustly blamed for the housing crisis. Here is the public perception of the ARM:

Borrowers were sold these new exotic Adjustable rates without the terms being disclosed, then they adjusted and the borrower could not longer make the payment and lost their home.

Is this true? partially. BUT , The ARM was not a new program, the ARM is not exotic or unusual, in fact the ARM is a great option for the right borrower. If you have over 20% equity in your home and you will sell within the next 5 or 7 years, and ARM is probably the right loan for you right now. WHY?

Rates as low as 2.875%! That is not a typo: 2.875% for a 5/1 ARM. You will have to pay 2.5 points to get there, but it is available.

How about 5/1 ARM 3.750% with NO POINTS? That is a full point lower than the prevailing 30 yr rate for today!

So why has the ARM taken such a beating? It was the subprime/Alt A stated income ARM that was the undoing of the mortgage industry. It was the Negative Equity OPTION Arm that pushed borrowers underwater. It was not the fact that they loan was an ARM that hurt us. Today, as a mortgage planner I offer ARM's to clients that can benefit from a ridiculously low rate with minimal risk. As a mortgage planner, I conduct a comprehensive interview and application with all clients to help them decide which product will best meet there needs. Call me today so we can figure out which loan is the right loan for you.

Josh Burley
Sr. Loan Officer
Choice Finance Corp.
www.joshburley.net
www.choicefinance.net
301.881.8900 x125

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**UPDATE** HUD pulled this letter the day after it was issued. Stay tuned for updates

On Tuesday HUD Secretary Shaun Donovan announced that first time home buyers may use the $8,000 first time home buyer tax credit as part or all of their down payment, when they use an FHA insured loan to purchase! We currently have very few details at this time, We do expect further details to be released next week. What I'm reading now, is that FHA will allow first time home buyers access to the tax credit through short term bridge loans, I assume these LOANS would come due some time in the middle of 2010 once returns have been filed and refunds have been issued. Keep in mind, this is a loan - this is not a situation where you simply have $8,000 of your cost paid. One more important caveat, just because HUD says they will allow this, it does not mean that all lenders will allow this. Lenders are imposing their own guidelines over and beyond HUD's guidelines. Before we get too excited, we must first see how lenders will react. Even if this is widely accepted by lenders, you must keep in mind that this is a loan. It will be offered by 3rd party approved non-profit and government agencies. You will need to apply, qualify and be approved. Still, this news is very encouraging for borrowers who currently cannot cover the 3.5% down payment requirement or get a gift to cover it.

Should this plan work as intended, Here is what a purchase could look like on a $230,000 FHA purchase in Maryland:

• 3.5% down = $8050
• Estimate closing cost=$5347.66
• Estimate prepaid taxes & insurance = $1532.65

total cost = $14930.31

• MINUS 3% seller closing assistance $6900
• MINUS $8,000 tax credit

total out of pocket expense to purchase your home = $30.31

The monthly payment on this scenario at a 5% 30 yr fixed rate would be approx. between $1550-$1650 per month. Check rates daily at www.joshburley.net

I think you may be surprised at the type of property you can own for $230,000. Click here to view local listings from a local company

As you can see, now is the time for first time home buyers! Call me today to find out how much home you can afford!

Josh Burley
Sr. Loan Officer
Choice Finance Corp.
www.joshburley.net
www.choicefinance.net
301.881.8900 x125

Check me out on Facebook

Help may be here for you!

I am one of many VOU homeowners that is upside down on my mortgage I purchased in the Villages of Urbana in September of 2005, otherwise known as "the height of the market". As a result, I owe$440,000 on a townhouse that is worth about $350,000 (I'm being aggressive with that estimate)

Due to the rapid decline in home prices in our community, many homeowners have been unable to take advantage of today's low interest rate. That has changed if your current mortgage is owned by either Fannie Mae or Freddie Mac. Under the HARP program, you may qualify to refinance up to 95% of the CURRENT value of your home.It is possible that you will not even need an appraisal! Concerned that you have secondary financing in place that puts your combined loan to value (CLTV) over 100%? You may still be able to qualify, provided that your current lender agrees to stay in second position.

Recently, I have been able to take a VOU resident that purchased in 2008 from a 5.375% rate, down to a 4.375% Fixed rate. I'm in the process of helping another VOU homeowner go from a 6.25% Interest Only JUMBO loan down to a fully amortizing JUMBO loan in the low 5% range.

If you purchased using FHA, I am currently offering FHA streamline mortgages from 4.5% with 1 pt and 5% with NO OUT OF POCKET EXPENSE!

Call me today to find out what I can do for you. I will let you know who owns your loan, and provide you with a no obligation good faith estimate!

Josh Burley
Sr. Loan Officer
Choice Finance Corp.
www.joshburley.net
www.choicefinance.net
301.881.8900 x125

DID YOU KNOW THAT 5/1 ARM's are available today at 3.75%? and 7/1 ARM's from 4.125%?

With the recent drop in fixed rates since the beginning of the year, no one seems to be talking about Adjustable Rate Mortgages (ARM's). This is for good reason too, the ARM has received a very bad reputation over the past couple of years. It is the ARM that caused the the subprime meltdown, which caused the credit crisis, which caused the banking crisis, which caused the economic crisis, which led to biggest financial crisis since the Great Depression! I'm pretty sure the ARM also is responsible for global warming, swine flu and Lindsey Lohan.

The poor ARM has taken a beating. But is it with just cause? To an extent the answer is yes. The subprime 2 yr ARM was one of the driving forces behind the housing bust. But not all ARM's are created equally. If taken by the right borrower, in the right situation, they are a GREAT option.

If you fully expect to sell or refinance your home in the next 5-7 years, you should consider a 5 or 7 year ARM. Why pay THOUSANDS more in interest, that you do not need to pay? Conversely, If you are going to apply for an ARM so you can qualify for a home that you can barely afford, than you should buy less house and taking a FIXED rate.

Everyone's situation is different. What may be the right loan for you, may not be the right loan for your neighbor. I advise that you work with a professional that will clearly discuss ALL option available to you and allow YOU to make an educated decision that is right for YOU!

Go to www.choicefinance.net/applyto complete your secure online loan application NOW!

Josh Burley
Sr. Loan Officer
Choice Finance Corp.
www.joshburley.net
www.choicefinance.net
301.881.8900 x125

"I'm a first time home buyer, I'm trying to buy a home soon to take advantage of the first time home buyer $8,000 tax credit" That statement ranks in the top 3 things I hear everyday.

#1 is "I'm upside down on my mortgage, HELP!"

#2 is "I'm not your maid, put your clothes in the hamper" (I did not say that my top 3 are all business related)

So I digress back to the point of this post. Now is a great time for a first time home owner to buy a home. Prices are low, rates are lower, sellers are paying closing cost for you and the government is chipping in up to $8,000. Even with all of this, you still need to assess whether or not you can truly afford the home that you may purchase (Hurry this offer expires at the end of the year) . Is it the right thing to do, is now the right time? Let's take a look at how it may breakdown:

I serve the DC metro area- so I am going to use figures that I know are common for the DC Metro Area. Let's say that you are currently renting an apartment for $1400/ month and you are comfortable with this payment. You would want your payment to be in this ballpark for your new home. Let's try to figure out how much house you can afford:

I would start by estimating about $350/month for taxes, homeowners insurance and mortgage insurance.

Now you need to figure out about how much your principle and interest payment will be. To do this, you need to play with some loan amounts and interest rates. You can do this on my site www.joshburley.net. I post rates daily and offer a simple mortgage calculator.

Today, you can obtain 96.5% financing through FHA at 5% fixed interest rate for 30 yrs. We are targeting a principle and interest payment of $1050/month to get to a total payment of $1400, which is the comfort level that we have established for this scenario. With a few clicks I determined that a $200,000 loan at 5% would give us an estimated TOTAL payment of $1424/month. This is right where we want to be. Now can you find a home in Maryland, Virginia or DC $200,000? Click here to find out

Surprised at what you found? Now that we have determined what you can afford, lets go over the benefits of home ownership. In this scenario, the buyer would be paying $16,800 in rent annuallu vs. $17,688 annually to own. The figure to rent will not change, the rents are not tax deductible and the government is not going to stroke you a check for renting. Let's figure the benefit of owning.

#1 You get to deduct the interest paid on your mortgage from your tax return. For this loan, the total would be about $9996 per year in tax deductions. As you may well know, the average person gets about 25% of there deductions back in the form of a tax refund. So now we have saved $2500 on taxes.

#2 You may be eligible for the $8000 first time home buyer rebate, now the savings rises to $10,500. This would bring your 1st year out of pocket expense to about $7200. Which is more than HALF of the cost of renting.

#3 You get to own your home, you can make the walls whatever bright tacky colors you choose and not have to answer to anyone about it.

Even after year 1, you would still be saving money by purchasing vs. renting. Click here for more information on the first time home buyer tax credit.

The bottom line is, the government has made purchasing your first home a very attractive option right now. Not only will you own your home, it could actually save you money. Go to www.choicerealestate.net to browse listings, and check out www.joshburley.net for daily rate updates

Josh Burley
Sr. Loan Officer
Choice Finance Corp.
www.joshburley.net
www.choicefinance.net
301.881.8900 x125