Flemington, NJ

Union Plus Mortgage Program: As part of the AFT - A Union of Profesionals, AFT + Member Benefits are available exclusively through Chase Home Loans. There are several different benefits available with our Union Plus Mortgage Program. This program is only available to bona fide members of participating groups, their parents and children. I am very proud to be able to offer this program to qualified applicants.

The primary benefits of the Union Plus Mortgage Program are as follows:

-Savings on Closing Costs: for new purchases and refinances. Typical closing costs charged by Chase are reduced to $100. 3^rd party fees are still charged such as title insurance, appraisal, credit, mortgage recording, etc. The closing cost rebate will be automatically applied at closing. This is a great savings, for first time homebuyers and veteran homebuyers alike.

-Wide array of programs to choose from- choose from fixed rate loans, FHA loans, VA loans. Contact me for more details on available loan programs, as not all programs are available in all states for all loan amounts.

-Special Mortgage Assistance Benefit: The Union Plus Mortgage Program offers Interest-free payment assistance loans and grants to help you make your mortgage payments in the event of involuntary unemployment, disability, union-approved strike, or lockout. Eligibility for the mortgage assistance begins one year after closing on a AFT + Mortgage through Chase. Again, Contact me for more information on the mortgage assistance program.

-Additional exclusive benefits - including hospital and college savings grants may be available.

The mortgage assistance portion of the Union Plus Mortgage Program stands out; as this may be a huge benefit in allowing one to maintain their credit rating in the event of involuntary unemployment, disability, union-approved strike, or lookout. I personally enjoy being able to offer this program and have taken the time to learn the program as well, so please feel free to Contact me to discuss this program in detail. There is a large database of unions which participate in this program, and we check and see if your particular union participates.

As usual, there is some disclosure necessary: All loans are subject to credit, property, approval. Rates, terms, and conditions are subject to change without notice. Other restrictions and limitations may apply.

Interest rates still aren't low enough to stimulate the U.S. economy. Washington needs to engender more inflation so "real" rates turn substantially negative

Can an interest rate of zero be too high? Unfortunately, yes. A new analysis by Goldman Sachs (GS) concludes that the Federal Reserve's cut in the federal funds rate to a record low of zero to 0.25% on Dec. 16 isn't going to be nearly enough to get the economy going again. The report says the Fed would need to reduce the federal funds rate to negative 6% by the end of 2010 to supply the needed amount of monetary stimulus.

The problem: It's literally impossible to cut interest rates below zero. As a result, "we are entering a world with interest rates that are far too high for the economy's good," Goldman Chief U.S. Economist Jan Hatzius wrote in a Jan. 16 research note.

That's a big negative for a U.S. economy that's already in a deep slump, with retail sales, industrial production, and exports all plummeting. Citigroup (C), Bank of America (BAC), General Motors (GM), and Chrysler, among others, are struggling to keep their heads above water. Circuit City, the second-biggest U.S. electronics retailer, announced on Jan. 16 that it was going out of business and closing all its stores by the end of March. Meanwhile, homebuilders like Lennar (LEN) and D.R. Horton (DHI) are getting squeezed by a record decline in home prices.

Inflation Headed to Zero?

Ordinarily when the economy slows, the Federal Reserve can juice it up by cutting short-term interest rates to below the rate of inflation, meaning that in inflation-adjusted terms, rates are actually negative. For example, if inflation is running at 6% per year and interest rates are at 4%, the "real" rate is negative 2%. Negative real rates entice people to borrow money for consumption or investment, which gets the economy going again and soaks up unemployed workers and equipment.

Right now, zero is about right for interest rates. But the economy is continuing to soften, so it will soon be too high, according to Goldman. Hatzius bases his calculation on Goldman's own version of the so-called Taylor Rule, which is named after Stanford University economist John Taylor. Taylor says the Fed needs to lean against the wind by raising rates when the economy is overheating and lowering them when there's a lot of slack.

Trouble is, the Federal Reserve can't cut interest rates below the rate of inflation if inflation falls to zero, which many economists expect to happen soon. Clearly the Fed can't take in $1,000 and pay back only, say, $950 a year later. Rational investors would simply keep their money in cash outside the banking system to preserve its value.

The solution is obvious: The Fed needs to deliberately raise the rate of inflation-maybe not all the way to 6%, but significantly above zero.

One way to do that is to print lots of money. The Fed can create money from thin air by purchasing assets such as Treasuries and mortgage-backed securities and paying for them by crediting the seller with newly created reserves at the central bank.

"Usual Rules No Longer Apply"

That way today's zero interest rates would be negative in inflation-adjusted terms and the economy would get the boost it needs. Fed rate-setters would need to swallow hard, since 99.99% of the time they try to quell inflation, not raise it. But most of the voters on the Federal Open Market Committee are aware that deflation can be an even greater nemesis than inflation.

Even generating negative real rates won't be enough to turn the economy around. So the government will also need to strengthen the banking system and give the economy a fiscal stimulus by cutting taxes and increasing government spending, as the Obama Administration proposes to do. To rescue the banks, Hatzius favors more purchases of bad assets that are on banks' balance sheets as well as lending by the Fed against consumer asset-backed securities.

Princeton University economist Paul Krugman favorably cited Hatzius' research in his New York Times blog on Jan. 17. No surprise there, since Krugman himself pinpointed a similar problem in Japan during its "lost decade" of slow economic growth in the 1990s. Wrote Krugman: "This is why we need a huge fiscal stimulus, unconventional monetary policy, and anything else you can think of to fight this slump. Quite literally, the usual rules no longer apply."

UPDATE: Goldman Sachs' Hatzius returned my phone call on Jan. 21 and spelled out what he thinks is the right strategy to combat the recession. To be absolutely clear, Hatzius does not think the government should try to get inflation up to 6% or anywhere close to it. Hatzius said that since the Fed can't reduce interest rates below zero, the government has to use other tools that would give an amount of stimulus equivalent to an interest rate cut of 6% or more. That would be a combination of fiscal stimulus (tax cuts and spending); efforts to get the banks lending again; and monetary stimulus such as increasing the money supply. The goal, says Hatzius, would be to get the inflation rate back up to around 1% or 2%. That's believed to be the Fed's target range.

By Peter Coy

Coy is BusinessWeek's Economics editor.

Paul Stillwaggon, For All Your Real Estate Needs Contact New Jersey Estates Real Estate Group E-mail: njestates@gmail.com Web: http://www.newjerseyestates.net 908-561-5492 (Paul S) 908-310-1358 (Cell)

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As a Flemington, NJ Mortgage Loan Officer, I have many programs to offer a consumer. They include and are not limited to: FHA Mortgages, VA Loans, Fannie Mae Loans, Adjustable Rate Mortgages, USDA RD Loans, Jumbo Mortgage Loans, and Stated Income Loans. We will review briefly each type of loan listed above to go over the programs I offer as a Flemington, NJ Mortgage Loan Officer . I can offer additional mortgage programs as a broker as well, giving us the ability to offer the best of both worlds. For a direct quote on any particular program, please contact me or call me directly at 908 531 6170. Here is a synopsis of several of our different loan programs:

FHA Mortgages: as a Flemington, NJ Mortgage Loan Officer, a large portion of our loans is through FHA and we have FHA Approved underwriters on staff. We offer the traditional 203B, 3.5% down FHA Purchase Money loan as well as the FHA renovation loans known as the 203k or Streamline K loans as well. Here is a recent blog I wrote about the FHA Adjustable Rate Program. The fixed rate program is super as well.

VA Mortgages: 100% financing for qualified veterans is a great loan program for veteran first-time homebuyers and seasoned homebuyers alike. With VA approved underwriters on staff, we offer in-house underwriting for VA Loans. Here is a recent blog I wrote with some basic information regarding the VA Mortgage Program.

USDA RD Loans: even in New Jersey, there are plenty of areas qualified for the moderate income rural development 100% financing program. As a Flemington, NJ Mortgage Loan Officer, my company underwrites and funds these loans ourselves. Here is some info on the USDA program and eligible areas in NJ. The most important part to remember about the USDA program is you must qualify income-wise and the property location must fall within an approved area.

Jumbo Mortgage Loans: We offer several different true Jumbo Mortgage programs on a brokered basis. Although many parts of NJ have benefitted from the "super-conforming" loan limits, some areas still have relatively low loan limits. The Princeton area comes to mind, for one. We have true jumbo loans available for those above the fannie mae loan limits. Here is a recent blog about our jumbo programs in NJ.

Stated Income Mortgage Loans: We do not offer the traditional "liar's loan", but rather have on a brokered basis access to Stated Income Mortgage Loans for the self-employed borrowers for which this program was originally intended. This blog has more information about our stated income brokered product.

For more information on the loans we offer as a Flemington, NJ Mortgage Loan Officer, use my contact form or call me at 908 531 6170.

Mortgage refinancing tips: In our current low rate market, many lenders are inundated with loan requests. Current turn times to close a loan are still around 30 days, giving we receive the necessary documentation in a timely manner. The tightening of the secondary market for Jumbo Loans , FHA and Va Loans , and Fannie Mae loans. In addition to shopping for a good rate with a competent Loan Officer, here are some basic Mortgage Refinancing tips to help you close within 30 days on a refinance transaction at the current market rates:

•- Get an approximate current market value of your home prior to an Appraisal. Online sites such as zillow will give you a ballpark of your current market value. A phone call to the real agent professional who helped you purchase your home is a better idea. The most disappointing the thing about our current market is seeing someone who is otherwise well-qualified to refinance have an appraisal come in too low to obtain financing that makes financial sense.

•- Check your credit. Your mortgage professional should review your credit with you prior to sending you a loan proposal. Keep in mind inquiries within the same industry within a 30 day period will generally only count as 1 credit inquiry on your credit report. You can also go online and obtain a free copy of your consumer credit report from many sources to review your credit report for accuracy. If your score needs some massaging, here are some tips: Your Credit Rating: a Few Tips For Those Who Pay Their Bills On Time .

•- Have your documentation ready. Lenders now will require the following for a standard full documentation loan:

- 2 years w-2's(and signed tax returns in many cases),

- 1 month paystubs(or pension/SSI receipts),

- 2 full months asset statements-ALL PAGES,

- Legible photo ID, a copy of a phone bill with phone # and address,

- Your homeowners insurance declaration page.

- Other documentation may include a VA Certifcate of Eligibility(for VA Loans), a credit explanation, and even a job history explanation.

People in Condominiums may need to ask their association to fill out paperwork regarding the Association as well. Other documentation may be required after loan underwriting as well, including a possible review appraisal in many cases. Of all of the mortgage refinancing tips I could state, having your documentation is the most important.

•- Ask questions. Your Loan Officer should be able to respond to your questions in a timely manner, and should manage expectations properly. Many LO's such as myself make themselves available after business hours and on weekends to answer questions via email and by phone. Demand excellence from your Loan Officer.

In today's market, lenders are wary of fraud as well as unsaleable loans in the secondary market. Loan Officers want to make loans, and want to ensure they are making good solid loans in this unstable market. I hope these mortgage refinancing tips help!

USDA Mortgages in NJ with no money down financing are still available in many areas. This is a great loan program for qualified New Jersey properties to qualified applicants with moderate income and little to no down payment. As I had written previously in this blog: Need 100% Financing? Try the USDA Guaranteed Rural Housing Loan Program the USDA Mortgages in NJ program is a great loan for rural and even some not-so-rural areas that qualify for the USDA program. New Jersey still has many areas that qualify for the RD Loan. For a direct quote on this or any particular program, please contact me or feel free to call me directly at 908 531 6170.

Real estate Agents: If you have a listing or are selling your home and it qualifies location-wise for an RD loan, this also can be a great tool to market a property. Everybody wants to get a bargain and /or a deal, and offering special financing is one way to create some sizzle. "No Money DownFfinancing available to qualified buyers" with USDA Mortgages in NJ is an attention getter for a property. The beauty of 100% financing for USDA Mortgages in NJ is that it expands the pool of folks who could possibly purchase your home.

Many Counties in New Jersey, particularly western and southern Counties, have at least a portion of eligible locations. Click here to look at a map of eligible areas in New Jersey for USDA financing. Be sure to consult the site first before looking at properties.

It is paramount to check the property location and also with a qualified loan officer for further details for information on USDA Mortgages in NJ with No Money Down Financing. Keep in mind, both the property (based on location) and the borrower (based on income) need to qualify to be eligible for consideration for this loan program.

The other qualification restriction is income based. The income limits for the 100% Section 502 Guaranteed Rural Housing Program are listed here: Income Eligibility According to the chart, a family of 2's maximum annual income would be $95,400 for the Section 502 Guaranteed Rural Housing Program in Hartford County.

There is a financed fee similar to the VA funding fee for this program, and there are credit qualifications-620 minimum fico- and property qualifications as well.

Once again, this a great program for 100% financing USDA Mortgages in NJ. For more details, contact Michael Byrne at 800-999-2489 x7972