• 849 Mistletoe Lane, Redding, CA 96002
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Fall 2018 Real Estate News In The North State

10/29/2018

Home Loan Information

Our prayers go out to those Victims and all or those affected by the Carr, Hirz and Delta fires which claimed over 1,100 homes and hundreds of other structures from July 23rd to just recently when all three fires were contained. We also extend our thanks to all of the First Responders. In the 28 years that I've lived in Redding I've seen some terrible fires but nothing like what we've all experienced in past 3 months.

From a lending perspective lending did slow down during these horrible fires, but fortunately we make loans up and down the state so we were still making loans over the last three months. There was a short time that we had difficulty with an FHA loan in a certain zip code here in Redding but aside from that we were able to close our client loans in and around Redding.

The biggest headwind in lending today is Federal Reserve. The Federal Reserve just increased the Fed Funds rate to 2.25% on September 26th and is stating that it intends to move this rate to 2.5% by the end of this year. It then plans to reach 3% by the end of 2019 and to 3.5% in 2020. The idea behind the rate hikes is to slow down inflation but it will likely slow up refinances and purchases too. With this said most of us have seen higher rates in the past and folks were buying and refinancing homes at that time and I think we expect the same in the future.

This past quarter 62% of our loans were purchases and 38% were refinances where the majority of these loans were Conventional Loans. It's interesting to note that 2 or 3 years ago I'd say the majority of our refinances were simply used to refinance our client's mortgages to lower interest rates, but now with the appreciation in housing more of these refinances are for cash out to make home improvements and to consolidate some bills so lending is changing in this respect. The use of money for Home Improvements is further confirmed by driving up to a Home Improvement store where the parking lots are nearly full today where they used to be almost empty 6 or 7 years ago.

We did make some VA, USDA and FHA loans too this past quarter. The VA is still one of the best loans out there as it does not have mortgage insurance at the higher loan to values where most loans do and it still has one of the lowest rates available in the market today.

The following notes will give you an idea of the loans that we made this past quarter. We Helped:

  • A family buy a home on a hill with beautiful views of the surrounding mountains with a very nice low rate purchase money loan.
  • A middle-aged Veteran buy his 1st home.
  • A Veteran refinance a Manufactured home allowing him to clear title on this home and another property that he owned at the same time in addition to consolidating bills lowering his payments and interest paid.
  • A couple buy a beautiful 30-acre piece of property with a small home and a huge barn.
  • A young couple buy a home with a USDA loan at zero down and a very nice low rate.

Special thanks to past clients and professionals for their business and referrals this past month including Terri, Dena, Suzanne, Jamie, Toni, Mark, Carolyn and Rod. We appreciate the confidence that you've placed in us in allowing us to take care of you and your clients, friends and families.


Summer 2018 Real Estate News In The North State

08/15/2018

Home Loan Information

This quarterly newsletter is a little longer in length than normal but as a result it may shed some helpful information for those that have been affected by the Carr Fire which has done a lot of damage in and around Redding. The Carr Fire started with a trailer rim sparking a grass fire on July 23rd and as of this writing approximately 180,000 acres have burned along with roughly 1,100 homes and 500 other structures. It's currently recorded as the 6th worst fire in California history.

Many of our clients have been affected by this fire with several losing their homes. My heart goes out to them and their friends and all of our community neighbors that may have lost their homes or who have been affected by this fire. As of this writing it is still only 51% contained and is still active west of Redding in the IGO and Lewiston Areas. I'd also like to say thank you to all 1st Responders who have done their best to save lives and property.

I've received several questions regarding the fire and its affects and I've listed a few of them below in hopes that this Q&A may help you if you've had similar thoughts and questions:

  1. How does my insurance work? This is probably the most important question there is at this time. Hopefully you have kept the insurance on your home if its paid off. Providing you did please call your insurance agent who will put you in touch with your Insurance Adjuster. The Adjuster is the person that can help you with your coverage questions for the Primary Home, Outbuildings and Contents. This a very important person. They also help with money for living expenses. Since this fire has been proclaimed to be a federal disaster my understanding is that you'll now receive 2 years of living expenses from your insurance company where this is one year normally. So, one of your first calls should be to your insurance agent who can put you in touch with your Insurance adjuster.
  2. Do I continue to make my mortgage payment? My answer is yes. Please call and communicate with your lender on this important question and let me know if I can help with a phone number or even to track down your lender if all of your paper work was lost in the fire. Note if you lost your home I believe your property taxes should be less for now or until your home is rebuilt so call the Tax Assessor and see if they'll lower your property taxes.
  3. What do I do about my Reverse Mortgage? Again, similar to the above---keep things as is--you don't make a payment on a Reverse Mortgage but you want to communicate with the lender what has happened to your home so that you are all on the same page. Remember this is not the first time the lenders or the insurance companies have been through this. Communication is the key. Communicate with your Lender and your insurance company Let me know if I can help in any way.

Once you have had a chance to talk to the Insurance Adjuster and the Lender involved you'll then be on the way toward determining if you plan to rebuild, move or to sale. Again, our hearts and prayers go out to those that were affected by this fire. We are here to help in any way we can.

Now to switch gears a bit, I'd like to let you know what lending has looked like over this past quarter and what we expect to have to work with in closing loans in Redding with the Carr Fire still active in our area. We have closed a couple of loans in Redding in the 96002 zip code area over the past week so we are still closing loans in Redding. Loans in the 96001 zip code area, which is West Redding where the fire hit the hardest, has been ruled out by lenders to fund as of this writing but I do expect this will open back up once the fire is contained. As of today, a couple of lenders have stated that they do not want to fund loans in all of Shasta County. Others are funding loans in zip codes outside of the 96001 zip code area all around Redding. So, loans are still being made. It is important that loans continue to be made for sellers involved who need to be able to sale their homes so they can move on with their next transaction and of course buyers who want to get into their new homes. We are hopeful the fire will come to an end sometime soon and allow our community, economy and lending to heal and resume their important functions in the North State.

This past quarter the loans we closed were split across the board for purchases and refinances where the majority were conventional loans. We did make some VA and FHA loans too this past quarter. The VA is still one of the best loans out there with amongst the lowest interest rates and it does not have annual mortgage insurance where other loans may.

The following notes will give you an idea of the loans that we made this past quarter. We Helped:

  • A young family buy their 1st home.
  • A middle-aged Veteran buy his 1st home.
  • A granddaughter and Grandparents buy a very nice Manufacture Home.
  • Several clients to buy and refinance their homes.
  • A client to consolidate several bills saving them hundreds of dollars a month in interest and payments.
  • We refinanced construction loans to long term fixed lower rate mortgages.
  • We helped a Veteran and his wife buy his dream home.

Special thanks to past clients and professionals for their business and referrals this past month including Jack, Kelli, Carlos and Jeannine, Michelle, Jamie, Toni, Jessica, Rob, and Steve. We appreciate the confidence that you've placed in us in allowing us to take care of you and your clients, friends and families.


Spring 2018 Real Estate News In The North State

04/19/2018

1st QTR 2018 - Home Loan Information

Some interesting things are happening in our national economy that affects Real Estate Lending. This past year the Fed Funds Rate is up 3/4%. This is a pretty significant move. In 2015 the Fed Funds Rate just .5%. This changed to .75% in Dec. 2016. It changed to 1% in March of 2017 and again to 1.25% in June of 2017 and again to 1.5% in Dec. of 2017. The most recent change was another 1/4% increase to 1.75% on 3/21/2018. What does this mean? Well 1st the Fed Funds Rate increase is a precursor to increases in the better known Prime Rate which has followed suit in the last year and the Prime is often the Home Equity Credit Line and Credit Card and Auto loan index so when Fed Funds rates go up other rates on the other lending instruments go up that makes things more expensive for us on a daily basis as we begin to pay more in interest on the money we’ve borrowed.

In addition to rate increases a new IRS Tax rule will change what we can write off regarding 2nd mortgage interest in the future. A general answer to the tax deductibility question came through February 9th Kiplinger Tax Letter where a subscriber wrote the question “can I deduct interest on a home equity loan used to remodel my home?” and the answer from Kiplinger was Yes---debt secured by a first or second home and used to improve the place has always been considered acquisition indebtedness, so the new law’s crackdown on home equity loan doesn’t apply. After 2017, you can no longer deduct interest on such debt used for other purposes, such as to buy a car or pay off credit card debt. "Please be sure to check with your tax advisor to get further personal tax advice as we are not accountants and everyone’s tax circumstance is different."

This past quarter the loans we closed were split across the board for purchases and refinances where the majority were conventional loans. We did make some VA and FHA loans too this past quarter. The VA is still one of the best loans out there as it does not have mortgage insurance at the higher loan to values where most loans do.

The following notes will give you an idea of the loans that we made this past quarter. We Helped:

  • A newly wed professional lady expecting for the 1st time to buy a home for her and her new family. As I was putting this loan together I was thinking what a dynamo.
  • A Veteran convert his construction loan on a new Manufactured home into a 30-year fixed VA home loan.
  • A couple to take cash out to pay bills off and save over $700 a month in payments.
  • Work with attorney’s this past 1/4 to help clients clear title and secure a home loan.
  • Clients to improve their credit scores to obtain lower rates when securing their loans saving them on interest expense in the future.
  • Two clients with 2nd Home loans which offer as good a rate as a primary home loan.
  • A client to obtain a long term fixed rate loan used to pay off a large HELOC (Home Equity Line of Credit) helping them to fix their rate should rates increase in the future.

Special thanks to past clients and professionals for their business and referrals this past month including Jack, Kelli, Carlos and Jeannine, Michelle, Jamie, Toni, Jessica, Rob, and Steve. We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends and families.


Winter 2017 - We Have A Tight Real Estate Sales Market

01/26/2018

4th QTR 2017 - Home Loan Information

As of this writing there are only 756 homes for sale in the Redding area including mobile homes in a park. A realtor friend of mine wrote me to say "I like 1200...more selection for my buyers...great for the sellers though when market is thin......"

This past quarter the majority of our loans were purchase money loans. Of the refinance loans half were for home improvements and half were strict rate and term refinances where we simply help our clients lower their existing interest rates.

The new year brought us some new loan limits. Conventional Loan limits are now at $453,100 which is a $29,000 increase over last year. Veteran Loans followed suit with the same $453,100 loan limit and increase in the new year. FHA increased its loan limit to $294,515. USDA loan limits fluctuate by county and are between $235,612 to $294,515 in the Shasta, Siskiyou, Tehama and Trinity Counties this year. The new higher loan limits should help the majority of real estate loan borrowers in the new year.

Please also note that we make the Reverse Mortgages to and that we take our time with these and make sure that our clients are comfortable with them before we get to far down the road with them. We price the majority of our loans with no underwriting fees, our rates are amongst the lowest in the area and we are closing many loans at or very near 30 days today.

The following notes will give you an idea of the loans that we made this past quarter, We Helped:

  • A Disabled Veteran buy his first home for himself and his family. A proud moment.
  • A couple of clients take cash out of their homes for Home Improvements.
  • Work with attorney’s this past 1/4 to help clients clear title and secure home loans.
  • A couple of our clients to improve their credit scores to obtain lower rates when securing their loans saving them on interest expense in the future.
  • A veteran to obtain a credit score so he can buy a home.
  • A client to obtain a loan used to pay off their construction loan at a very low fixed 30-year rate

Special thanks to past clients and professionals for their business and referrals this past month including Sonja, Mark, Rod, Carolyn, Jamie, Toni, Jessica, Al, Rob, Steve, David, and Jay. We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends and families.


Fall 2017 - It’s A Purchase & Fix UP The

10/28/2017

3rd QTR of 2017 - Home Loan Information

This past quarter 57% of our loans were purchase money where 43% were Refinance Loans. Of the refinances a majority of these were to take money out to fix up the home or to payoff credit cards that had been used to fix up the home.

In the lending industry we are starting to see the resurgence of the 2nd mortgage. This means to me lenders are comfortable with the health of the Real Estate Market today. If looking at a 2nd mortgage be sure to ask questions like is the interest rate fixed or variable, how long do you plan to take to pay it off (2 years -or-10 years), is there an upfront fee, is there a prepayment penalty and how does it work?

In the government loan mix, we made FHA, VA and USDA Loans this past quarter. FHA loans made up the majority of our government loans. We also make Conventional and Reverse Mortgages too. We have no underwriting fees on most of our loans at this time. We are closing many loans at or very near 30 days today.

To give you an idea as to some of the loans that we made this past quarter, We Helped:

  • 2 Reverse Clients to obtain their loans with very little closing costs and another at a relatively low cost. In these cases, we freed up disposable income so that they can enjoy lives to a fuller extent without a mortgage payment.
  • Several clients take cash out of their homes for Home Improvements.
  • A client to buy his father’s home out of the family trust.
  • Several clients to purchase or refinance after credit problems including bankruptcies and foreclosures. Often, we can work with credit to increase scores and lower rates.
  • A veteran work to obtain a credit score so he can buy a home in the near future.
  • A client to purchase a home and relocate back home in the Shasta County area after living abroad for 25 years.

Special thanks to past clients and professionals for their business and referrals this past month including Mark, Rod, Carolyn, Jamie, Toni, Theresa, David, Mike, Tammy, Brian and Jay. We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends and families.


Summer 2017 --- It’s A Purchase Market

08/08/2017

2nd QTR of 2017 --- Home Loan Information

This past quarter 80% of our loans were purchase money where 20% were Refinance Loans. This is a
big shift from last year when this mix was 50/50. This data tells us that most of borrowers that had
been thinking about refinancing for lower rates have done so and we’ve entered more of a Purchase
Loan Market at this time.

Federal Reserve Chairwoman Janet Yellen stated late last year that she could see the Fed Funds rate go
to 3% by the end of 2018. It is currently holding at 1 to 1.25% today so we are likely to see higher rates
in the future but for now she also came out to say recently that the economy is not increasing to the
desired 2% annual growth rate she’d like to see. With this in mind we may not see another rate hike this
year and we may not see 3% by the end of next year unless the economy really starts to kick into gear.
What does this mean-- -rates may stay down for a while yet.

In the government loan mix, we made FHA, VA and USDA Loans this past quarter. FHA
loans made up the majority of our government loans. We also make Conventional and
Reverse Mortgages too. We have no underwriting fees on most of our loans at this time. We
are closing many loans at or very near 30 days today.

Average Note Rates on Loans Today Are Still Very Close to 50 Year Lows.

To give you an idea as to some of the loans that we made this past quarter, WE HELPED:

 

  • Several clients to overcome past credit, foreclosure and short sale problems resulting in the ability to buy again and in several instances, we’ve helped clients improve their credit scores resulting in lower interest rates. 
  • Two clients’ buy their grandparents past home, keeping the home in thefamily.  This is very nice and rewarding.
  • Several client’s buy their 1 st and 2 nd homes this past quarter.
  • We helped a veteran and his wife to buy a home. Prior to that they were renting. When we started he was concerned that they couldn’t buy a home. When the loan was complete, with a tear in his eye he gave me a big handshake. This made my day, my week and it's why I work hard at my job.
  • We helped a client secure a Reverse Mortgage. This freed up disposable income so that hecan enjoy life a little better without a mortgage payment.

Special thanks to past clients and professionals for their business and referrals this past month including Mark, Rod, Carolyn, Jamie, Toni, Theresa, David and Mr. Brown. We appreciate theconfidence that you’ve placed in us in allowing us to take care of you and your clients, friends
and families.


Winter 2016 --- Where Will The Rates Go From Here?

02/15/2017

4th QTR of 2016 - Home Loan Information

This past quarter real estate lending did pick up with borrowers getting in their refinances and purchases prior to the rates making another move up this past QTR. The two big pieces of news this past QTR was of course that Donald Trump was elected to become our 45th President and that the Federal Reserve increased the Fed Funds rate from .50% a year ago to .75%. If the US and World economies start to fire on all cylinders Janet Yellen; our Federal Reserve Chairwoman, has stated she could see the Fed Funds rate go to 3% by the end of 2018 so we are likely to see higher rates in the near future. One thing is for certain, regardless of where the rates go, people will always need money.Money and real estate loans help to improve our client’s lives---Accelerated Mortgage is a part of that and we thank you and are honored to be able to help our clients with this financial endeavor.

In the government mix we made FHA and VA Loans this past quarter. VA loans made up the majority of our government loans. We have no underwriting fees on most of our loans at this time. We are closing many loans at or very near 30 days today.

Average Note Rates on Loans Today Are Still Very Close to 50 Year Lows.

To give you an idea as to some of the loans that we made this past quarter, we helped:

  • A young couple with 6 boys take out a Home Improvement loan to be used toward remodeling and upgrading their existing home.
  • Several veterans refinanced to make Home and Improvements and to simply lower their interest rates saving them on interest and payments.
  • We helped a client refinance after working through some credit challenges.
  • We helped a single mom with 4 kids to buy her 1st home. 3 of the kids are foster kids and she worked with her credit for months to get herself and this family in a position to be able to do this. Congratulations to her! What a neat thing to be able to help out!

Special thanks to past clients and professionals for their business and referrals this past month including Brad, Mark, Rod, Carolyn, Jamie, Toni, and Rudy. We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends and families.


Fall 2016--- Election Affect, Good For Rates?

11/27/2016

3rd QTR of 2016 - Home Loan Information

Loans this past quarter at AMS (Accelerated Mortgage Services) were made up of 55% government loans and 45% conventional loans. The big news at the beginning of October was that USDA lowered their upfront Funding Fee from 2.75% to 1%. USDA stated “Because foreclosure and delinquency rates have fallen to historic lows, USDA could afford this reduction”. In the recent past we saw FHA drop their Annual Mortgage Insurance fee from 1.35% to .85% for the same reason. The post melt down real estate market is now considered healthy by the real estate lending agencies which is translating into saving for our borrowers.

The next question is will the savings in real estate loans continue. With the Presidential Election on the horizon it really is anyone’s guess. I do see many financial planners and analysts putting odds on an increase in the Fed Funds Rate by year’s end which may mean the beginning of the end of the easy money and low rate policies we’ve all benefited from in the recent past. My advice is that if you’ve been thinking about refinancing to lower your rate now is the time. If the loan pays for itself by lowering your rate through interest savings in 2 years and you plan to be at your home for two years plus it could likely be a very good move to make at this time.

Average Note Rates on Loans Today are Very Close to 50 Year Lows.

To give you an idea as to some of the loans that we  made this past quarter, we helped:

  • Two clients buy retirement homes in Redding. One client from the Mid-West and another from Sonoma County.
  • Several clients out with near 50 year low rates on Home Purchases and Refinances.
  • A couple take cash out with a standard conventional loan to remodel their home.
  • Several couples and individuals buy their 1 st homes. This is always a neat thing.
  • A gentleman obtain a Reverse Mortgage that was not getting very good service from a company down south. In addition, he wanted to be able to talk someone in person. I worked with this gentleman and it was very much a pleasure to close his reverse mortgage.

Special thanks to past clients and professionals for their business and referrals this past month including Steve J., Dorris, Mark, Rod, Jessica, Karen , Carolyn, Steve B., Jamie, Toni, Rudy, and Mike. We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends and families.


Summer 2016, Britain's Exit Good For Rates

08/13/2016

2nd QTR of 2016 - Home Loan Information

This past quarter real estate lending did pick up with a dip in rates as a result of Britain’s Exit from the EU. Our loans at AMS (Accelerated Mortgage Services) this past quarter were made up of 45% government loans and 55% conventional loans. The big news this coming October is that USDA has stated they will lower their upfront Funding Fee from 2.75% to 1.75%. This 1% drop can save a person up to $2,000 on a $200,000 purchase. What’s interesting on the larger scope is that the USDA Loan Program must be on pretty solid footing to lower a fee like this vs. just after the meltdown when these fees were going up. This is good news when you read a bit deeper into the fee story.

In the government mix we made FHA and VA Loans this past quarter. FHA loans made up the majority of our government loans this past quarter. VA brought up a close 2nd. With the lower rates in all loan categories consumers are getting opportunities to streamline refinance FHA and VA loans again which means no appraisal, income or asset qualification saving borrowers time and money. We have no underwriting fees on our VA loans and very little Origination if any on most of our loans for over a year now. At this time we are also donating $150 per month to our local Veterans Resource Center to help our local veterans with their needs and to help them get back on their feet.

Average Note Rates on Loans Today are Very Close to 50 Year Lows.

To give you an idea as to some of the loans that we made this past quarter, we helped:

  • A young couple and their 6 kids to buy their 1st home through the VA loan program. 3 girls in one room, 3 boys in another and mom and dad in the 3rd—a busy household.
  • A young single mom and her daughter purchase their 1st home through an FHA loan.
  • A couple take cash out with a standard conventional loan to remodel their home.
  • A couple obtain a Reverse Mortgage to do some major remodeling to their home in addition to taking some money out to dedicate toward vacations with their kids and grandkids to create memories. Very nice!
  • A couple in Illinois to buy a 2nd home in CA—closer to family when they retire.

Special thanks to past clients and professionals for their business and referrals this past month including Dorris, Mark, Rod, Becky, Carolyn, Jamie, Toni, Rudy, and Steve. We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends and families.


Spring 2016, Steady As She Goes!

06/03/2016

1st QTR of 2016 - Home Loan Information

This past quarter was a little up---a little down---average in the end. I think there is some concern that the Federal Reserve does want to move rates up which will in the end increase our mortgage rates. Consumers are keeping a close eye on this and refinancing and buying while the rates are still low. The problem for the Federal Reserve is that both nationally and internationally it doesn't appear that world economies are on fire so it is hard for them to increase rates when we are trying to get our economies clipping along in a steady but upward fashion.

Government loans made up 35% of our loans this past quarter while conventional loans made up the remainder. The big news this quarter is that USDA is lowering their fees on October 1st of this year from 2.75% to 1% up front and from .5% to .35% annually at a huge savings to 1st time homebuyers. This is a significant savings for our borrowers. An Interesting note-- FHA lowered their fees last year at about the same time. The take away is that Government Loan Program balance sheets must be stronger than in years past allowing them to lower their fees.

In the government mix, VA loans made up the majority of our government loans. We pride ourselves in doing a very good job with all loans but we do an especially nice job with the VA Loans. We are familiar with the requirements of this loan, have lenders that don't charge an underwriting fee and can close them quickly. Often within 30 to 40 days. We also continue to give back to the veterans by donating monthly to our local Veterans Resource Center to help our local veterans in need.

Average Note Rates on Real Estate Loans Today Are Still Very Close to 50 Year Lows.

To give you an idea as to some of the loans that we made this past quarter, we helped:

  • A young veteran and his family increase their score so that they could buy their 1st new home through the VA loan program. 6 kids---3 in each room. Got to love it!
  • Saved a veteran $3600 in loan costs vs. what an out of area lender offered.
  • Helped a professional buy a 4-Plex at a very nice rate using a conventional loan.
  • Helped a single man payoff a private party loan on his double wide manufactured home.
  • Helped several couples and individuals buy their first homes---pretty exciting!

Special thanks to past clients and professionals for their business and referrals this past month including Brad, Corey, Steve, Terri, Suzanne, Carl, Jamie, Toni, Mark, Becky, and Carolyn. We appreciate the confidence that you've placed in us in allowing us to take care of you and your clients, friends and family.


Quarter 4 2015 Home Loan Information

01/27/2016

This past quarter real estate lending has been steady at AMS (Accelerated Mortgage Services) with government loans making up 53% of our loans and conventional loans making up the other 47%. The big news this past quarter was that the Federal Reserve finally raised the Fed Funds Rate ¼%. In general this is a sign the Federal Reserve feels the economy is getting better. Although I see some signs of an improving economy in steady real estate values and employment there are still some economic concerns with China’s economy slowing and the net affect thus far has had little effect on mortgage rates at this time.

Average Note Rates on Real Estate Loans Today Are Still Very Close to 50 Year Lows.

In the government mix we made FHA, USDA and VA Loans. VA loans made up the majority of our government loans. We pride ourselves in doing a very good job with all loans but we do an especially nice job with the VA Loans. We are very familiar with all of these loans and have lenders that don’t charge an underwriting fee and can close them quickly. At this time we are also donating $100 per VA loan closed to a local Veterans Center to help our local veterans with their needs to help them get back on their feet.

To give you an idea as to some of the loans that we made this past quarter, we helped:

  • We helped a veteran from Southern California buy a home in Redding to retire in.
  • Helped a couple obtain a reverse mortgage to eliminate their monthly payments.
  • Made a low rate USDA loan to a couple in need of more room for them and their 4 adopted kids.
  • Helped a couple payoff a higher rate VA loan saving them close to $8,000 in interest saving per year, Wow!
  • Helped one of our favorite Doctors obtain a 2.875% fixed 15 year loan, very nice.
  • Helped a few other couples to buy their first homes and 2nd homes, pretty exciting!

Special thanks to past clients and professionals for their business and referrals this past month including Carolyn, Dale, Carl, Terri, Tammy, Mark, Cory, Steve, Jay, Rudy, and Shelley. We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends and families.


Quarter 3 2015 Home Loan Information

10/24/2015

In this past quarter, 62% of our loans were purchase money loans and 38% were refinance loans.   Of these loans, 58% were conventional, 25% were FHA and 5% were USDA and 12% were VA loans.  We also make Reverse Mortgages; they fall into the FHA category. 

What's New

On October 3rd the industry had one more disclosure change which is good for the consumer in that it allows 3 additional days  to review the loan terms prior to signing loan documents.  This is good as the real estate loan is often one of the largest financial transactions people make and this process should not be rushed.  It should be thought out and this gives the consumer a little more time to make sure they are comfortable with the payment, the rate, the terms of the loan etc.

Average Note Rates on Loans today are within 3/8% off  50 year lows!

This past quarter, we helped:

  • Two educational  professionals purchase homes in Trinity County.
  • A single mom buy a new home for her family in  the right school district.
  • A young couple buy their first home with no  money down in Siskiyou County.
  • Several clients get back into the housing market  after past housing events (Foreclosures, Short Sales). This is pretty common  today in the wake of The Great 2009 recession.
  • A couple of our clients place a commercial loan  with a local bank so they could raise the money needed to buy the home of their  dreams.

Special thanks to past clients  and friends including Steve, Corey, Graceyn, Jamie, Toni, Jay, Tom, Jim and  Janice, and Shelley.


Will Rates Rise?

07/09/2015

Summer 2015-Will Rates Rise?

The question I am hearing more and more today is when do I think rates will start to go up again? My answer is that it’s hard to say. Our rates in the U.S.A. today are more and more dependent on what is going on in the world economy as opposed to just our U.S. economy. Note that Greece is having financial difficulties, China is experiencing a bit of a bubble in their stock market. The U.S. appears to be doing well with job creation. All this balances out to a steady as she goes with rates with maybe a fed funds increase in rate by the end of the year. If we do get an increase I expect it to be very small so I think we can expect rates to be close to where they are at today through the remainder of the year. 

This past ¼ 35% of the loans made were Conventional Home Loans, 35% were VA and 30% were FHA Home loans. USDA really tightened down on their Debt to Income guides so we are seeing less of these loans today compared to say two years ago but they are still and excellent loan for the 1st time and or rural (out of the city limits) home buyer. We pride ourselves in doing a very good job with all loans but we do an especially nice job with the VA Loans. We are familiar with the requirements of this loan, have lenders that offer about the lowest rate out there and don’t charge an underwriting fee and we can close them quickly. At this time we are also donating $100 per VA loan closed to our local VRC (Veterans Resource Center). The VCR helps our local veterans with their needs to help them get back on their feet. 

To give you an idea as to some of the loans that we made this past quarter, we helped:

  • Several veterans purchase new homes with their low rate VA loans
  • A couple retirees to refinance their homes with conventional loans lowering their rates so that their interest rate savings helped to pay for the refinance within 2 years or less.
  • Helped a school administrator and his wife purchase a home using an employment contract in lieu of a paystub allowing us to close 30 days sooner than a competitor. 
  • A past client with a cash out refi used to purchase some equipment for his business. 
  • Helped other couples to buy their first homes and 2nd homes after difficult housing events in their recent past---pretty exciting!

Special thanks to past clients and professionals for their business and referrals this past month including Jay, Rod, Mark, Carl, Brad, John, and Greg. We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends and families.