Erin Newington, Sacramento Mortgage Planner

Why "Shopping Your Rate" Doesn't Work?

Lots of advertisement's list what they call "Today's Best Rates". But we are not in business to mislead you!

Mortgage rates change daily, if not several times a day. So you may see a rate advertised that's no longer available by the time you apply. What's more, certain rates are only available to clients with specific needs or credit qualifications. There's no way for you to know whether an advertised rate is what you'll end up getting.

Another consideration is that some mortgages with very low rates may not give you the options or flexibility you need. The only way a loan officer can accurately quote you the best rate is if they meet with you and discuss your specific details.

I can appreciate clients who want to get the best deal to a degree. What I find is that these shoppers end up often times with the "biggest liar". I don't say this to be harsh, it has just been my observation. Often times when we check in on someone who choose to go with the lowest price and rate the person is not happy. Some end up around the rate we originally quoted them because the "special rate" was no longer available. Others end up with an even higher rate than our quote because they are too embarrassed or proud to call us. The worst part are when folks are put into some crazy 3 year arm with a 3 year prepay penalty, just so they can get the rate they were quoted. That is a recipe for disaster in this market.

I like to compare shopping your interest rate to the "lowest bidder" with seeking legal advice. All lawyers are not equal. Just because both of your choices carry the same degree and passed the Bar, does not mean their advice is equal. I don't know about you, but I have spent thousands of dollars because of bad legal advice. I've seen mortgage clients come to our office that have done the same. They get pulled in on the empty promises and there is typically a last minute bait and switch right before they need to close. That's when we typically get the call.

If you call a loan officer and they give you a rate before they really understand your situation, this person may not be the best member for your team.

Choose someone who has your back and who will keep your interests ahead of their own commission. Today's Sacramento Real Estate Market is tough. You really need someone who knows what they are doing. Contracts need to be optimized and loan files need to be reviewed several times in order to head- off any issues. The days of placing loans by making one phone call are over. The Sacramento Bank Owned inventory is a special "beast"! You need a Sacramento Realtor and Sacramento Mortgage Broker who know what they are doing so they can help you navigate your family through a successful transaction.

The lesson for today is RATE IS NOT EVERYTHING! So the shoppers of the world are shopping the wrong thing!

This blog written by:

Team Newington
Sacramento Mortgage Planners
(916) 687-6868
www.SuperiorLoanTeam.com

Check out some of these great events if you are looking for something to do in the Sacramento area this weekend!

Sacramento

May 17th~ West Coast Brew Fest 2008
1pm-5pm. Miller Park (2790 Marina View Way)
9th Annual Brew Fest featuring 60 microbreweries with anexpected attendance of 3,000. WCBF is everything a brew festshould be with live music by local bands, great food provided by great vendors.
$27 prepay online, $30 day of

www.matsonian.com/wcbf/home.html

May 17th~ Boil ‘n Fry Day
2pm-Midnight. Dad's Sandwich Shop/Parking Lot (1310 S St.)
Beer, bands, BBQ, crawfish & good times to support the Make-A-Wish Foundation.
$10 Cover (21 & Over) (916) 448-DADS.

Tickets at Dad's or online:www.BrownPaperTickets.com

May 18th~ Pacific Rim Street Fest 2008
10am-5pm. Old Sacramento & Westfield Downtown Plaza.
For 16 years the festival has displayed the richness and diversity of many Pacific Rim cultures through cultural programs, entertainment, art and food. The event also enhances the community's knowledge of Asian/Pacific Island cultures in a fun and positive environment.

Free admission. (916) 442-7644. www.pacificrimstreetfest.com

Folsom

May 17th~ Spring Concert, Themes of Faith & Glory
8pm. Jill Solberg Theater-Folsom High School (1655 Iron Point)
Fantasia on a Theme by Thomas Tallis - Vaughan Williams Warsaw Concerto - Richard Addinsellwith Guest Pianist, Richard Cionco Symphony No. 3 - Beethoven.
$19-$38 (916) 983-4277

www.folsomsymphony.com/default.aspx

El Dorado County

El Dorado Hills

May 16th~El Dorado Hills Summer Concert Series
7pm-9pm. El Dorado Hills Community Park (1021 Harvard)
Journey Tribute Band- great times, great tunes and high energy is the theme for this summer series. Tantalize your senses with songs from the 80's. Bring the kids, pack a picnic, potluck or stop for pizza and come on out for our summer concerts.

Free (916) 614-3216

May 17th~Movie Nights at Serrano
7pm-9pm. Village Green (4525 Serrano Parkway)
Free outdoor movies shown on giant inflatable movie screen. Concessions, raffles & free giveaways! Bring blankets, picnics & lawn chairs (not to exceed 18 inches in height). Movie meal deals available for purchase. $5 includes a slice of pizza, drink & dessert or candy bar. Great fun!

Free. (916) 933-8946 www.sierraoutdoorcinema.com

Placerville

May 18th~Hangtown Classic Car Show
9am-3pm. Historic Main Street.
Back by popular demand! Cosponsored by Placerville Lions Club, Mother Lode Lions and the Placerville Downtown Association. Participation is limited by the number of spaces available for pre-1972 classic cars. For more information: (530) 622-1731

May 16th-18th~ 2008 5th Annual Rocks & Rhones Festival
Celebrating the Pleasant Valley region's 30 year history with Rhone grape varieties. Activities include Educational Sessions, Winemaker Dinner and Grand Tasting.

Grand Tasting tickets are $30 in advance and $35 at the door

www.pleasantvalleywineries.com

Placer County

Roseville

May 17th~ Roseville 3rd Saturday Art Tour
5:30pm-8:30pm. Roseville Downtown Library (225 Taylor Street)
Local artists Robert E. Lee and Paula Wenzl Bellacera are featured at the Downtown Roseville Public Library.

Free

www.rosevillearts.org/tours.html

May 17th~ ‘Sleeping Beauty'
2pm. The Roseville Theatre (241 Vernon Street)

$8
www.mcircle.org

Rocklin

May 17th~ Extreme X-perience Grand Opening
10am-5pm. Blue Oaks Town Center (NEC Blue Oaks & Lonetree)
Featuring BMX Bike Stunt Shows, Inflatable Kid's Fun Zone, Car Show, Live Bands, D.J., Water/Bike/Skateboard Safety Demos, Food, Wine Tasting, and More!

Lincoln

May 17th~ Ride to Walk/Boots & Scoots Barn Dance
5pm. RTW Ranch (1630 Hwy 193)
Dinner, dancing, music, silent auction, raffle & demo riding. Ride to Walk is a Non Profit, NAHRA Certified Therapeutic Riding program serving children with Neurological Disabilities such as Autism, Cerebral Palsy, Muscular Dystrophy and Down Syndrome.

$35, Children $15, Under 7 Free (916) 434-0693

www.ridetowalk.com

Auburn

May 16th-18th~ Auburn Home Shows
Fri 11am-7pm, Sat 10am-7pm & Sun 10am-6pm.
Gold Country Fairgrounds (1273 High Street)
Featuring 1,200 exhibits from beautiful landscaped vignettes showcased in natural settings to exhibitors offering everything for your home and garden needs, you are sure to enjoy your show experience.

$6 General, $1 Seniors & Children 5-12. Under 5 free.

(530) 887-3616 www.auburnhomeshows.com

Have a great weekend with your family!

Blog by: Team Newington at First Priority Financial www.SuperiorLoanTeam.com

Could there be a silver lining to the current decline in the Sacramento Real Estate Market?

Did you know that you can request the Sacramento County Assessor's Office to reevaluate your current assessed value of your home to see if you qualify for a reduction under Proposition 8?

This decline in value may be the result of changes in the real estate market, the neighborhood, or the property itself. The assessed value will be reduced only after a review by the Assessor's Office. If the assessed value is reduced, it will thereafter be reviewed annually until the property value is brought up to its original assessed value.

Many folks in the Sacramento Area have lost significant value in their homes. With the economy it's current state, every penny counts. With as little as 30 minutes you may be able to save yourself hundreds of dollars per year by reducing your Sacramento property taxes.

Here are the steps you can take to apply for this temporary reduction in property taxes:

Step One:
Complete the following form and submit it to the Sacramento Tax Assessor Office by December 1, 2008 to qualify for a 2008 reduction.

Download form here >>

You must provide 2 comparable properties that sold between January 1, 2008 but no later than March 31, 2008. You should provide any supporting documentation to support you case! I recommend that you call your Realtor and ask them for a Comparable Market Analysis and provide you a list of all homes sold between Jan 1, 2008 and March 31, 2008.

Step Two:
The Assessor's Office will evaluate the infomation you provided to see if you qualify for the reduction.

If the Assessor agrees the assessed value has declined below factored Prop 13 value, then:

• Assessed value is lowered to market value for next fiscal year
• Owner is notified of reduced value
• New tax bill is based on lower value for next fiscal year

The Sacramento Assessor's Office constantly monitors market conditions and, when practical, lowers assessed values on a mass basis. Owners are notified and may file an Assessment Appeal if they feel the value was not lowered sufficiently. Read more about the Assessment Appeals process and deadlines.

If you have any questions, you should contact the Sacramento Assessors Office! Here is there contact information:

Sacramento Assessors office
Attn: Real Property Prop 8 Review
3701 Power Inn Rd, Suite 3000
Sacramento, CA 95826
(916) 875-0455

Good luck!

Blog by: Team Newington www.SuperiorLoanTeam.com

There ought to be a law! - Don't you hate it when the title company makes more than you!

I may sound like I am whining but I am just so frustrated... so let me vent for a minute!

Many of our clients are picking up great investment deals (REO's) right now in the Sacramento Area. The challenge has been most of these deals are under 100k. I know for some folks around the country I must sound like a spoiled brat!

Anyways ...I am working on one such deal and there was a discrepancy on the fees. Even though Regulation Z says total fees to the borrower cannot exceed 7.99, the Lender has decided to cut this number to 5% total after they told me something else in the beginning of this transaction. So of course I am going to do the right thing and stick by my original quote to my client.

Well it just so happens this deal is a REO transaction. When I calculated the fee, it hit me like a ton of bricks.... the title company was going to make more than me !

Here is the venting part...

What is with these discount title companies working with these REO companies? First off I have to deal with incompetent folks who can't get me what I need in a timely fashion. They have so many transactions going on at once they refuse to answer the phone or return an email! Now I find out today they will make more money than me on this transaction! You have got to be kidding!

You know who gets the discount from these "cattle herd" companies?... the REO Bank. But the truth is you know who pays for it? The Buyer! Sure their fees are reduced in the Bank's column improving their already "in the red" bottom line, but what just ticks me off is it just gets passed to the Buyer.

These little junk fees slowly ate away at my commission:

•· Document prep fee $25

•· Messenger fee $100

•· Endorsement fee $100

•· Sub escrow fee $125 (sub escrow?... this is 1^st mortgage loan only!)

•· Loan tie in fee $125 (again what are we tying into if there is only one mortgage)

•· Email doc fee $100

•· Technology Fee $100 (didn't you already charge me that?)

•· Loan release fee $100

Just to name a few....

Are you kidding me? When I explained what happened to the title company do you think they cared? NO I really did not expect them to budge but come on... they should be ashamed of themselves. I tried to argue (calmly review) with them their fees. If I was going to pay for them, I wanted to know what I was getting for my money! The sad part is they would not explain them to me. Their response... "Those are our fees and we will not adjust them".

I don't expect others to pay for something that came from my end (from my lender I placed the loan with), but come on at least have a heart. It just does not seem right they can charge whatever they want.

OK, I am done venting, thanks for listening!

There ought to be a law... if there is one I would love to know!