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Paul Luykx

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

09-19-08
Paul Luykx
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.
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Rates plunge - Negative equity - DPAs back? - More 1st time homebuyer grant info

09-12-08
Paul Luykx
Good new for once. In the wake of the Fannie/Freddie bailout confidence in the bond markets renewed, resulting in lower rates across the board. I achieved reductions of as much as 0.75% for my clients this week. Good news on the loan modification front also. Lenders are increasingly willing to reduce rates and forgive parts of loans to adjust to market conditions and ability to pay. My Entrust team connects with the right people within lending institutions, and knows how to get the best possible deal, quicky. As always, please contact me if you know someone who could use my help. Have a good week folks!.... Paul

Mortgage rates plunge!
"Interest rates for 30-year fixed are down almost 0.6% in the wake of the Fannie/Freddie bailout and the renewed confidence in mortgage backed securities. Freddy Mac rate surveys
1-3 week trend: Down 21+ days: Flat Market commentary
Refinance vs. loan modification
Loan modifications can only be negotiated if a refinance is not possible. Common reasons include (a combination of) negative equity, ARM that has or will re-set at a high rate, insufficient qualifying income, and mortgage arrears in the last 12 months.
Don't tell me - Zero down coming back?
The House Financial Services Committee has scheduled HR 6694 for mark up on Tuesday September 16, 2008. This bill will reinstate DPA. Read more

Nearly one in 10 mortgages in arrears nationwide
As the federal government (that is, we the taxpayers) came to the rescue this week of Fannie Mae and Freddie Mac, it’s worth noting what’s happening on the ground that makes all this necessary. Statistics put out at the end of last week by the Mortgage Bankers Association showed that 9% of mortgage holders nationwide were behind on their mortgages (6.2%) or already in foreclosure (2.8%) in the second quarter of this year. Read more

$7,500 tax credit for 1st time buyers now available
Further information and the regulations regarding this tax credit are now available. If you have an interest in the program, here are some basic facts.
10 cities where jobs, home prices are growing
Forbes magazine identified cities that aren't overbuilt and have an ample supply of good-paying jobs. Albuquerque, N.M. tops the list.
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Somewhere, something incredible is waiting to be known.
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Loan modifications! - Stated loans - Fannie/Freddie

09-07-08
Paul Luykx
Loan modifications, recently in the news due to generous arrangements made with Indymac borrowers who were offered interest rates as low as 3%, are now widely made! And I am pleased to let you know that I now offer a dedicated Loan Modification Service, backed by an expert team of negotiators with 20 years of experience who have well-established contacts with all mortgage lenders. If you, or anybody you know, can benefit from this I recommend you contact me asap because the future of loan modifications (on favorable terms) is unclear. Have a good week folks!.... Paul

Fannie Mae and Freddie Mac rescue
The government has announced a Fannie Mae and Freddie Mac rescue. I will report on the implications next week. Read the Treasury statement.

Mortgage rates ease
"Mortgage rates eased a bit over the holiday-shortened week following release of economic data that suggest consumer spending may slow,” said Frank Nothaft, Freddie Mac vice president and chief economist. Freddy Mac rate surveys
1-3 week trend: Down 21+ days: Flat Market commentary
What is a Loan Modification?
In short, a Loan Modification is a permanent change in one or more of the terms of a mortgage, resulting in a payment the mortgagor can afford. This can involve interest rate reduction, loan amount reduction, change to a different type loan, and other considerations.

Who is eligible for Loan Modification?
There are no fixed rules (yet) for loan modifications. See also my blog/newsletter of Aug 21st. Here are some typical cirumstances that preclude a refinance on affordable terms, can lead to a foreclosure, and could compel a lender to modify the terms of the mortgage:
  • Current or past mortgage arrears
  • Negative equity
  • Decrease in income
  • ARM that will or has re-set at a high rate
  • Low credit scores or other credit issues
  • Increase in personal expenses (medical, emergencies, etc.)
Stated Income loans
Stated income loans are still available for owner-occupied and investment property. But the pricing is increasing, and the lending criteria continue to tighten. The new housing bill, which comes into effect October 1st has a further limiting effect. Many lenders are cancelling their programs. If you have a need, contact me without delay.

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The less you talk, the more you're listened to.
(Abigail Van Buren)
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Good news, bad news - FHA premiums up - Rates mixed

08-28-08
Paul Luykx
Nobody likes bad news, but it just keep coming it seems. This week billionaire investor Warren Buffet predicted the economy could be worse in 5 months and Atlanta Fed President Dennis Lockhart said home prices in could fall another 10-15%. Ok then - well what goes up comes down, and vice versa. Even now I see solid cash-on-cash investments, and we don't know where the bottom is. Time to prepare for the inevitable turnaround. Have a good long weekend folks! ... Paul

Fixed rates lower, ARMs up
"Interest rates for fixed-rate mortgages continue to drift down as reports of economic weakness persist. ARM rates, on the other hand, rose slightly after the Federal Reserve's Open Market Committee hinted it might increase the overnight bank lending rate" said Frank Nothaft, Freddie Mac vice president and chief economist. Freddy Mac rate surveys
1-3 week trend: Down 21+ days: Flat Market commentary
Glimmers of good news in US housing reports
While no one is ready to call the bottom of the worst housing collapse in decades, there were glimmers this week that the severity is waning... more
FHA hikes insurance premiums (again)
The Federal Housing Administration said earlier this week that it would hike its upfront mortgage premiums for all purchase money mortgages and full-credit qualifying refinances. It will add 25 basis points to its mortgage premium, bringing the upfront premium charged to most borrowers to 1.75 percent... more
Hollywood condo billed as paprazzi proof
A condo project in LA is promoting itself as the first paparazzi-proof building, complete with "Israeli-trained VIP" security guards... more

5 chances to buy hip-hop mansions
If you’re in the market for a house that lives large, check out the homes of hip-hop stars currently for sale... more
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The future belongs to those who believe
in the beauty of their dreams
(Eleanor Roosevelt)
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I want a deal too! - DPAs out early! - Commercial refi's

08-21-08
Paul Luykx
Horrific is a fitting term for the current state of affairs in Mortgage Land. The Fannie-Freddie meltdown and continuing real estate malaise are still making things worse. Zero down opportunities are disappearing in advance of the Sep 30 deadline (which is why I am releasing the newsletter early this week). And now commercial financing is mimicking what residential has done over the last 12 months. Most of us are by nature optimists who believe that the future will soon again replicate a glorious past, or at least the way it was a just a few months ago. Don't count on it! If you need to finance or refinance, do it sooner, rather than later! Go here for an online quote request .... Paul

Rates lower on continued weakness in housing
"Even with the current historically affordable mortgage rates, news continues to show signs of weakening in the housing sector," said Frank Nothaft, Freddie Mac vice president and chief economist. "For example, housing starts fell to 0.965 million units (annualized) in July, the slowest pace since March 1991. As a result, homebuilder confidence remained at an all-time record low in August since the series began in January 1985. Freddy Mac rate surveys
1-3 week trend: Flat 21+ days: Flat Market commentary
DPA ALERT - Zero down possibilities evaporating!!
Exactly as I feared, lenders are stopping DPA (Down Payment Assistance) deals, some now stipulating that applications must be in by August 31st - next week! (as opposed to having the DPA approved before Sept 30th, with funding at any time thereafter). Your opportunity to purchase with zero down can be gone any time! If you have one, act now! Call me any time for lightning speed service.
Luxury condo crisis
The once untouchable part of the NY state retail market is now feeling the credit crunch, with Alex Frangos, The Wall Street Journal reporter. Watch video
Dear FDIC: I want a better mortgage too!
In real estate you typically see cycles between buyer's markets and seller's markets. But the credit crunch has brought a new term to the forefront: a borrower's market.

Don't procrastinate on applying for a commercial loan
The chairman of Cambridge Realty Capital Cos., said given the current environment, it is unlikely rates for commercial real estate loans will move any lower and he advises borrowers against procrastinating. Read more

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All experience is an arch, to build upon.
(Henry B. Adams)
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