Rate Hike

RATE HIKE

Interest Rates Rising 12/14/2016


 Federal Reserve announced today that it would raise its benchmark interest rate by a quarter of a percentage point.

“In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 1/2 to 3/4 percent,” the Fed’s policy-making committee said in a statement. “The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a return to 2 percent inflation. Merry Christmas”

https://carolinegerardo.eaglehm.com/ 

Star Wars Mortgage

Star Wars Year End Statement and

Prepare for Income Taxes

A blow up version of Darth with

a cheerful Merry Christmas banner fitting in preparing

a greeting for tax time... 

January 5, 2016

Dear Friends and Mortgage Borrowers:

I imagine that you are beginning to prepare for what undoubtedly (next to submitting mortgage paperwork) is one of America’s favorite activities- filing income taxes.

Each year, the company who owns your loan will send you a mortgage interest statement that summarizes the amount of mortgage interest that you paid for the previous year. This statement may or may not include potentially tax deductible items relating to your mortgage. The mortgage interest statement is something that you should provide to your tax advisor.

Additionally, since you did close a new mortgage loan in 2015, there may be items associated with that closing that are tax deductible. At the end of your mortgage adventure, you were sent a Final Settlement statement by the escrow company and this statement should be given to your tax advisor. To save you the time and trouble of looking for this in the mountain of paper that you have from the mortgage process, I have included a copy of your Final Settlement statement for you to give to your tax advisor in addition to the mortgage interest statement.

Please call me if you have not received your 1099 - you can use a Final HUD1 from escrow or

Closing Disclosure after October 3rd with your income taxes.

It was my pleasure to help you with your mortgage last year and please do not hesitate to contact me for any future needs or with any questions that you may have.

Sincerely,

C G

Caroline Gerardo Barbeau

NMLS 324982

Eagle Home Mortgage a Lennar Homes Company

NMLS #849059 CA #813I609 Universal American Mortgage Company of California, dba Eagle Home Mortgage of California.

Licensed by the Department of Business Oversight under the California Residential

Mortgage Lending Act. RMLA #4130383, NMLS #252392. Certain restrictions apply. This is not a commitment to lend.

Applicants must qualify.

Temple of TRID

California Per Diem Interest/Summary:

One more detail about TRID to make certain mortgage companies, banks and lenders all make sure

everything is dotted, crossed, initialed and signed. Golden new rules for mortgage loans, home loans, HELOC's and just about any loan to a buy or refinance real estate

Interim Interest - A borrower is not required to pay interest for more than one day prior to the recording of the mortgage or deed of trust. A borrower is not required to pay interest for more than one day prior to the date that the loan proceeds are disbursed out of escrow, or disbursed to the borrower, or to a third party on behalf of the borrower. [CA Civil Code 2948.5]

Exception permits charging interest for weekend or holiday to facilitate recording or disbursement on following day if agreed to by borrower per required disclosure  (California Residential Mortgage Lending Act Per Diem Interest Disclosure; Destiny form and similar form in Encompass). 

California regulator exam in 2012 found five instances of the disclosure signed in blank (no issue with amount of interest) and two instances of interest charged for the weekend without the borrower’s consent (checked NO on disclosure). 

The attached California Residential Mortgage Lending Act Per Diem Interest Disclosure is included in our closing loan documents.
Unsigned loan documents stall selling of the loan and are costly and time consuming to ask Borrowers to re-sign and mail back and forth.

Underwriters are required to add the following condition to all California loans:

Closing agent to provide the California Per Dium Interest Disclosure Form to the Borrower /customer when applicable and is responsible for filling in the numbers in the blank spaces for the Borrower /customer that would be charged and is responsible to make sure the Borrower initials the form

Funders are required to review the form and to add verbiage to the closing instructions advising Settlement Agents of the correct way to complete and to be sure buyer chooses an option

Welcome to the Temple of TRID where we get it perfect. 

Caroline Gerardo

Eagle Home Mortgage 

Universal American Mortgage

nmls 324982

(949) 784- 9699

Mortgage Interest Rates Past 31 Years

Caroline Gerardo C. G. Barbeau Senior Loan Officer NMLS #324982     Office 949-784-9699 eFax 855-883-4303 CarolineGerardo@eaglehm.com www.eaglehomemortgage.com/carolinegerardo Committed to Seeing You Home. Eagle Home Mortgage 100 Spectrum Center Drive Suite 500 Irvine CA 92618 NMLS #849059 CA #813I609 Universal American Mortgage Company of California, dba Eagle Home Mortgage of California. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. RMLA #4130383, NMLS #252392, NV #3244. Certain restrictions apply. This is not a commitment to lend. Applicants must qualify.

Monthly Payment Chart

Caroline Gerardo Senior Loan Officer NMLS #324982 Cell 949-637-8190 Office 949-784-9699 eFax 855-883-4303 CarolineGerardo@eaglehm.com www.eaglehomemortgage.com/carolinegerardo Committed to Seeing You Home. Eagle Home Mortgage 100 Spectrum Center Drive Suite 500 Irvine CA 92618 NMLS #849059 CA #813I609 Universal American Mortgage Company of California, dba Eagle Home Mortgage of California. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. RMLA #4130383, NMLS #252392, NV #3244. Certain restrictions apply. This is not a commitment to lend. Applicants must qualify.

11 Tudor Ladera

11 Tudor Ladera Ranch home for sale

Martha Stewart could live here

This perfectly maintained house

for $899000

With 80 10 + 10 financing you

only need $99000 to close

Payments as follows:

1st TD APR 4.199    monthly principle and interest $ 3433.61

2nd TD APR 5.301  monthly principle and interest  $   493.01

Property tax + Mello Roos                                        $  1120.08

Fire hazard                                                                 $    85.00

HOA dues                                                                  $   193.00

Total monthly payments $5325.

terms and conditions apply

this is not a rate commitment or loan approval
Call for your mortgage quote

rates change twice a day this was as of 3/27/2015
Ladera Ranch California 

HELOC In Trouble?

TransUnion's completed a research study on Home Equity Lines of Credit in the United States. Study here:
http://www.transunioninsights.com/helocstudy/

There are almost eight billion dollars outstanding on HELOC loans. Fifty percent of the total were originated from 2005 through 2007 at the height of the mortgage boom. Most have a ten year draw period with interest only payments until the end of the ten years. 
Some lenders in 2007 closed down HELOC available lines of credit. For example Bank of America reviewed Countrywide HELOC’s that they took over and on borrowers who were not using lines available, they arbitrarily closed the balance down, or decreased the line to the existing balance. Reasoning for this was most HELOC’s were underwater. Lenders used Broker Price Opinion valuations and online appraisal tools to mark properties with at risk HELOC’s. Many of those HELOC’s are now coming into time framed in the promissory notes that require principle and interest payments and catch up clauses. Will Americans be able to handle the jump in payments? Is there trouble ahead?
Certain market areas: Coastal with view, California Bay Area, and states where there was not a big bubble in property values will not be at risk. Borrowers can refinance the second into a new low rate first. 

Borrowers in pocket areas where the value has risen back to 2006 levels, can even find HELOC products that are amortized over thirty or forty years rather than the standard HELOC that will roll to a principle and interest payment amortized over fifteen after the ten year interest only time period. 
Others in markets that still have a long way back to valuations of 2006 (Arizona, Florida and Michigan) may see defaults.

If you have a HELOC that is adjusting and you want free advice how to fix it, please contact me I am happy to help

Mortgage Rates Steady

American Flag in Monarch Beach, California

 

Cheeta on termite mound watching the market?

Pride of Lions

 

• Mortgage rates push slightly higher today. The trading session for bond markets including Mortgage backed securities, closed early on Thursday in honor of today’s Good Friday holiday. Although I’m Catholic, I wonder how a religious holiday stops business nationwide. Today fundings and wires are closed early, despite the fact that it is end of the month which is typically the busiest day for home loan closings. Assume all bond traders have left the building and are relaxing in their second home in the Hamptons. I have three loans to close this morning and hope their dreams of moving into houses in Dana Point, Newport Coast and Newport Beach do happen over the Easter weekend.
• Though there is political bad news in play, none of the worries about run on banks in Cyprus bailout seem to shake and tremble the ten year bond traders. Trading levels rocked back and forth all day yesterday. Best executions on interest rates (with one point) for 30yr Fixed loans hover at 3.625% with the minor weakness being seen in the form of moderately higher borrowing costs. Normally before a three day weekend traders would raise rates, increase margins and protect the igloo to be able to get out of town safely for the holiday. Still there are worries about the economics in Italy and the EU.  A lion or a cheeta lurking on the savannah?

 

• Mortgage rates remain low. More money and lenders are jumping into Jumbo and Super Jumbo ARMS with interest only payments and even qualify without taxes for the self -employed (of course priced for that risk)
• CONFORMING LOAN RATES THIS MORNING:
• Rates change all the time, this is not an offer to lend you money
• 30YR FIXED - 3.75% (APR 3.811), 3.625 % (APR 3.789) coming back into view
• FHA/VA - 3.375 (APR 3.499)
• 15 YEAR FIXED - 3.00% (APR 3.129) coming back into view.
• 5 YEAR ARMS - 2.625 (APR 2.713)
• Of course there are pricing adds for: FICO, property type, time period for lock, loan to value, use, dollar amount, and the proverbial kitchen sink.

Lock/Float Worries for April and May 2013

• Rates are moderately higher but consistently since hitting their all-time lows in September and October 2012.

Other factors that prevent mortgage loans from sliding back to lower numbers are worldwide concerns about the EU bailouts and still high unemployment. We aren’t out of the woods with those ugly monkeys Toto, not yet.

Though some would wish we were Japanese mortgage rates of recent history (less than 2%) with that comes great sacrifice for the whole. California appears to be miraculously recovering in coastal areas, with values rising. Still there are homeless families on the corner near my house in Monarch Beach with a cardboard sign about their financial troubles. We live in such a beautiful community it is difficult to think about those who are facing hardships this Easter.

I predict we will see another rate dip around Halloween 2013, perhaps triggered by some newly promoted news. It seems the story of the day is interpreted into code that traders take or leave depending on who will profit. I don’t mean to sound jaded.

What does that mean for the individual purchasing a home in Orange County California? Rates are still great, you may not hit the perfect day in the perfect moment but an eighth or a sixteenth isn’t going to break the debt to income ratio and fail your plans. My advice, don’t pay a fortune for your loan, just in case we see a dip again in October. Steady course, keep your credit on track and budget...

Keeping you in my thoughts and prayers for a Happy Easter, a joyful Passover and hopefully low tide will bring good fortune to you.

Laguna Beach Surf California, low tide

HUD House Equal Housing Opportunity