Mortgage Rates Fall!

MORTGAGE RATES FALL WITH BAD NEWS

YIPPEE for me 

weed out high interest rates and refinance or 

jump to another lender to avoid "unlock" penalties

WAIT UNTIL THURSDAY 5/18/17  

but not Friday (every bond trader goes to the Hampton's for the long weekend to lock, 

maybe Monday. if open or Tuesday depends on Lender

·         Overnight headlines of former FBI director Comey's records of potential wrongdoing on the part of Trump regarding the FBI's investigation of former Security Adviser Flynn spark panic but they also shake up markets. Bad news brings down mortgage rates which have been climbing in past months

So what do we hear

o    vocal outrage among other lawmakers

o    uncertainty among investors

o     yelling "impeachment" in news media

o    and the sky is falling

·         "Impeachment" news is scary stuff, but level brains in the room agree that the political uncertainty surrounding this sort of drama raises  bigger roadblocks to fiscal policy making than those encountered in mid-March.  

·         Bottom line: markets are worried that all the "stuff" that drove the big move in late 2016 is suddenly not quite as justified--or at least that it definitely won't be happening quickly ("something" would still likely happen even if Trump is impeached, because we'd still have one party in control of law-making, and they'd be arguably more unified under Pence).

Long-Term Lock/Float Strategy 

·         POST TRUMP election trade was said to be the death of the decades-long bond market rally, but some traders simply saw it as a temporary pull-back with the next rally being driven by geopolitical and fiscal uncertainty surrounding the new administration.  

·         The "temporary pull-back" explanation makes sense as rates entered a downtrend in mid-March.  They bounced out of that downtrend and had been moving higher until mid-May.

·         Either way, risks are far more balanced than they were before mid-March

Short-Term Lock/Float Strategy

·         Today's huge move obviously turns short-term strategy on its head. 

·         Risk-averse clients who are inclined to lock are justified in doing so, provided the lender in question has passed along enough of the market gains.  I'd be looking for at least 3/8ths of a point 

·          we'd like to see more of the gains passed along and are willing to accept the risk that M B S prices will be a quarter point weaker tomorrow.  A quarter point of losses should leave many rate sheets right about where they are now.  A bigger sell-off is a risk that comes with the territory of floating.  

·         Realize that big pullbacks/reversals are common in cases like this.  Interest rates are going to jump to touch ceiling and crash on the court in the same day. Advantages last for a brief time.  Floaters understand we're likely to see that weakness and they'll need to bail if it gets out of hand (i.e. if 10yr yields were moving back above 2.27.  

Technicals/Trends in 10yr 

·     TOP

o    2.27

§  this is your best friend if you're floating longer-term now. 

o    2.35% 

§  we'll talk about this if 2.27% breaks

·       Bottom

o    2.21%

§  today's lows

o    2.15-17%

"The Gap" from Nov 2016.  Breaking below this leads to the promised land, but a bounce would be as bad as a break would be good.

Call me for a quote

C G

(949) 784- 9699

NMLS 324982

Update Your Mortgage to Lower Payment

#sunflowers smile at you from my garden

A post Caroline Gerardo (@carolinegerardo) on May 1, 2017 at 9:31am PDT

In the 1970's my sister Nori and I shared a pink and green bedroom

I don't have photographs of the wallpaper but below is close.

Do you feel stuck in a mortgage of the past?

Interest rates took a little dip back in time this week.

Call for a tune up. Perhaps we can erase your mortgage insurance

and lower your monthly payment. Discover the savings, for free

Refinance that flower power paper into jet fuel of today

Caroline Gerardo

NMLS 324982

(949)   784-- 9699

carolinergerardo @ eaglehm .com

Avocado green maybe not coming back?

Orange County California zip codes list below:

ORANGE County, CA 

ZIP City Population count

ZIP Code  90620

General Buena Park

45,113

ZIP Code  90621

General Buena Park

35,153

ZIP Code  90622

P.O. Box Buena Park

0

ZIP Code  90623

General La Palma

15,554

ZIP Code 90624

P.O. Box Buena Park

0

ZIP Code 90630

General Cypress

47,993

ZIP Code 90631

General La Habra

67,619

ZIP Code 90632

P.O. Box La Habra

0

ZIP Code 90633

P.O. Box La Habra

0

ZIP Code 90680

General Stanton

29,945

ZIP Code 90720

General Los Alamitos

21,751

ZIP Code 90721

P.O. Box Los Alamitos

0

ZIP Code 90740

General Seal Beach

23,729

ZIP Code 90742

P.O. Box Sunset Beach

831

ZIP Code 90743

P.O. Box Surfside

456

ZIP Code 92602

General Irvine

22,871

ZIP Code 92603

General Irvine

20,184

ZIP Code 92604

General Irvine

26,853

ZIP Code 92605

P.O. Box Huntington Beach

0

ZIP Code 92606

General Irvine

21,495

ZIP Code 92607

P.O. Box Laguna Niguel

0

ZIP Code 92609

P.O. Box El Toro

0

ZIP Code 92610

General Foothill Ranch

11,248

ZIP Code 92612

General Irvine

27,522

ZIP Code 92614

General Irvine

24,748

ZIP Code 92615

P.O. Box Huntington Beach

0

ZIP Code 92616

P.O. Box Irvine

0

ZIP Code 92617

General Irvine

14,044

ZIP Code 92618

General Irvine

16,366

ZIP Code 92619

P.O. Box Irvine

0

ZIP Code 92620

General Irvine

38,486

ZIP Code 92623

P.O. Box Irvine

0

ZIP Code 92624

General Capistrano Beach

7,248

ZIP Code 92625

General Corona Del Mar

12,478

ZIP Code 92626

General Costa Mesa

49,341

ZIP Code 92627

General Costa Mesa

61,510

ZIP Code 92628

P.O. Box Costa Mesa

0

ZIP Code 92629

General Dana Point

25,756

ZIP Code 92630

General Lake Forest

59,182

ZIP Code 92637

General Laguna Woods

16,012

ZIP Code 92646

General Huntington Beach

55,224

ZIP Code 92647

General Huntington Beach

57,245

ZIP Code 92648

General Huntington Beach

45,317

ZIP Code 92649

General Huntington Beach

32,463

ZIP Code 92650

P.O. Box East Irvine

0

ZIP Code 92651

General Laguna Beach

23,881

ZIP Code 92652

P.O. Box Laguna Beach

0

ZIP Code 92653

General Laguna Hills

29,291

ZIP Code 92654

P.O. Box Laguna Hills

0

ZIP Code 92655

General Midway City

8,337

ZIP Code 92656

General Aliso Viejo

49,046

ZIP Code 92657

General Newport Coast

9,741

ZIP Code 92658

P.O. Box Newport Beach

0

ZIP Code 92659

P.O. Box Newport Beach

0

ZIP Code 92660

General Newport Beach

34,797

ZIP Code 92661

General Newport Beach

3,744

ZIP Code 92662

General Newport Beach

2,756

ZIP Code 92663

General Newport Beach

21,649

ZIP Code 92672

General San Clemente

34,464

ZIP Code 92673

General San Clemente

29,309

ZIP Code 92674

P.O. Box San Clemente

0

ZIP Code 92675

General San Juan Capistrano

34,731

ZIP Code 92676

General Silverado

1,945

ZIP Code 92677

General Laguna Niguel

63,297

ZIP Code 92678

P.O. Box Trabuco Canyon

494

ZIP Code 92679

General Trabuco Canyon

32,611

ZIP Code 92683

General Westminster

89,747

ZIP Code 92684

P.O. Box Westminster

0

ZIP Code 92685

P.O. Box Westminster

0

ZIP Code 92688

General Rancho Santa Margarita

43,792

ZIP Code 92690

P.O. Box Mission Viejo

0

ZIP Code 92691

General Mission Viejo

47,582

ZIP Code 92692

General Mission Viejo

47,222

ZIP Code 92693

P.O. Box San Juan Capistrano

0

ZIP Code 92694

General Ladera Ranch

21,944

ZIP Code 92697

Unique Irvine

0

ZIP Code 92698

Unique Aliso Viejo

0

ZIP Code 92701

General Santa Ana

53,908

ZIP Code 92702

P.O. Box Santa Ana

0

ZIP Code 92703

General Santa Ana

65,445

ZIP Code 92704

General Santa Ana

88,123

ZIP Code 92705

General Santa Ana

44,706

ZIP Code 92706

General Santa Ana

36,457

ZIP Code 92707

General Santa Ana

59,492

ZIP Code 92708

General Fountain Valley

56,004

ZIP Code 92711

P.O. Box Santa Ana

0

ZIP Code 92712

P.O. Box Santa Ana

0

ZIP Code 92728

P.O. Box Fountain Valley

0

ZIP Code 92735

P.O. Box Santa Ana

0

ZIP Code 92780

General Tustin

57,741

ZIP Code 92781

P.O. Box Tustin

0

ZIP Code 92782

General Tustin

23,032

ZIP Code 92799

General Santa Ana

0

ZIP Code 92801

General Anaheim

62,068

ZIP Code 92802

General Anaheim

42,709

ZIP Code 92803

P.O. Box Anaheim

0

ZIP Code 92804

General Anaheim

85,914

ZIP Code 92805

General Anaheim

70,401

ZIP Code 92806

General Anaheim

37,173

ZIP Code 92807

General Anaheim

36,171

ZIP Code 92808

General Anaheim

20,039

ZIP Code 92809

General Anaheim

0

ZIP Code 92811

P.O. Box Atwood

0

ZIP Code 92812

P.O. Box Anaheim

0

ZIP Code 92814

P.O. Box Anaheim

0

ZIP Code 92815

P.O. Box Anaheim

0

ZIP Code 92816

P.O. Box Anaheim

0

ZIP Code 92817

P.O. Box Anaheim

0

ZIP Code 92821

General Brea

35,533

ZIP Code 92822

P.O. Box Brea

0

ZIP Code 92823

General Brea

3,613

ZIP Code 92825

P.O. Box Anaheim

0

ZIP Code 92831

General Fullerton

34,204

ZIP Code 92832

General Fullerton

24,752

ZIP Code 92833

General Fullerton

51,767

ZIP Code 92834

P.O. Box Fullerton

0

ZIP Code 92835

General Fullerton

24,010

ZIP Code 92836

P.O. Box Fullerton

0

ZIP Code 92837

P.O. Box Fullerton

0

ZIP Code 92838

P.O. Box Fullerton

0

ZIP Code 92840

General Garden Grove

54,083

ZIP Code 92841

General Garden Grove

32,845

ZIP Code 92842

P.O. Box Garden Grove

0

ZIP Code 92843

General Garden Grove

45,214

ZIP Code 92844

General Garden Grove

24,307

ZIP Code 92845

General Garden Grove

16,333

ZIP Code 92846

P.O. Box Garden Grove

0

ZIP Code 92850

Unique Anaheim

0

ZIP Code 92856

P.O. Box Orange

0

ZIP Code 92857

P.O. Box Orange

0

ZIP Code 92859

P.O. Box Orange

0

ZIP Code 92861

General Villa Park

5,781

ZIP Code 92862

General Orange

0

ZIP Code 92863

P.O. Box Orange

0

ZIP Code 92864

P.O. Box Orange

0

ZIP Code 92865

General Orange

19,704

ZIP Code 92866

General Orange

14,885

ZIP Code 92867

General Orange

44,515

ZIP Code 92868

General Orange

25,404

ZIP Code 92869

General Orange

37,184

ZIP Code 92870

General Placentia

52,033

ZIP Code 92871

P.O. Box Placentia

0

ZIP Code 92885

P.O. Box Yorba Linda

0

ZIP Code 92886

General Yorba Linda

46,564

ZIP Code 92887

General Yorba Linda

20,006

ZIP Code 92899

General Anaheim

0

New Fannie Mortgage Rules on Student Loans

 Student loan payment calculation – Fannie  simplified guidelines on student loans. If a payment amount is provided on the credit report, that amount can be used for qualifying. If the credit report does not identify a payment amount or reflects $0 the lender can use either 1% of the outstanding  balance or a calculated payment that will fully amortize the loan based upon documentation of loan repayment terms.

Revised Guide for Student Loan Obligations:. 

                                                                                                Student Loan Obligations mortgage rules

Student Loans in normal repayment status
Fannie Mae	Freddie Mac	FHA TOTAL SCORECARD/MANUAL	VA
payment amount provided on the credit report  If the credit report does not identify a payment amount or reflects $0 use either   1% of the outstanding  balance or  Calculated payment that  fully amortizes the loan based upon documentation of loan repayment terms.	Use the payment indicated on the credit report     IF no monthly payment is reported on the credit report or no documentation in the credit file verifying the monthly payment, 1% of the outstanding loan balance is monthly amount for qualifying purposes.	Payment used is:   the greater of ·         1% x the outstanding balance, or ·         The monthly payment on the credit report OR actual documented payment, provided the payment fully amortizes the loan over term. Obtain written documentation of actual monthly payment, the payment status, and outstanding balance and terms from the creditor.	Greater of credit report payment or 5% x balance/12, unless you can prove the credit report payment is the actual loan terms (fully amort. pmt). Proof must come from student loan servicer and be no more than 60 days old.

Student Loans in Deferred or Forbearance Status
Fannie Mae	Freddie Mac	FHA TOTAL SCORECARD/MANUAL	VA
Same as above	Same as above	Same as above	No payment required if deferment period is at least 12 months beyond date of closing. If less than 12 months left of deferment calculate using greater of credit report payment or 5% x balance/12, unless you can prove the credit report payment is the actual loan terms (fully amort. pmt). Proof must come from student loan servicer and be no more than 60 days old.
Student Loans under Income Based Repayment Plans
Fannie Mae	Freddie Mac	FHA TOTAL SCORECARD/MANUAL	VA
Same as above	Same as above	Same as above	Greater of credit report payment or 5% x   balance/12, unless you can prove the credit report payment is the actual loan terms (fully amort. pmt). Proof must come from student loan servicer and be no more than 60 days old.

Excluding Debts Paid by Others – Other party isn't obligated on the debt. Non-mortgage debt if paid by another party for 12 months can be excluded from the borrower’s debt to income ratios Need: most recent 12 months’ cancelled checks (or bank statements) from the other party documenting a 12–month satisfactory payment history. No delinquent payments for that debt in order to exclude it from the borrower’s debt-to-income ratio.  Other party cannot be a party to the transaction. Non-mortgage debts include installment, revolving, lease payments, alimony, and child support.

Cash out refinance paying off off student loan(s) loan level price adjustment for out refinance transactions waived when all requirements have been met. At least 1 student loan must be paid off.  Loan proceeds must be paid directly to student loan servicer.   Lesser of 2% of $2000 cash back over and above the student loan payoff.  

Properties Listed for Sale – Fannie Mae eliminating the eligibility restriction for cash out refinances when the subject property was listed in the past 6 months. Property must be taken off the market on or before the disbursement date of the new mortgage.

Expiration of PERS – Final Project Approvals for streamline PERS submissions will be issued up to 24 months at Fannie’s discretion. Currently the term is 18 months.

Caroline Gerardo
NMLS 324982
https://carolinegerardo.eaglehm.com/ 

949  784-  9699   cell

I have a box full of Nancy Ann Story book dolls if anyone wants them contact me.
Most in boxes never opened

How To Cancel Mortgage Insurance MI

How to cancel Mortgage Insurance
also known as MI and PMI

There are a number of misconceptions. Don't assume that MI payment falls off. Although some are tax deductible (don't forget when you file you taxes!!) no one likes to pay for insurance that doesn't give them anything.
Contact your loan servicer: ask for copy of promissory note if you don't have it
You must request the cancellation of MI in WRITING, 
a phone call doesn't legally start the process and some servicers may not give 
you correct information this is why you need the note.
A trusted mortgage banker can read the ins and outs of the note for you for free.
You don't need an attorney, but make sure you know your rights.

Must have 75% ltv (loan to value) seventy five percent or less first 2-5 years.
Almost all require 2 years to use current appraised value.

Mortgage lenders/investors will typically permit the cancellation of private mortgage insurance (private MI), when you have equity in the home. the Mi was placed to protect the lender in event of default (if
you went into foreclosure the insurance pays the lender somewhere between 18 and 25 percent of loan, depending on what you set up at the start.

Because MI insures a lender, the MI company- Names of some not all: MGIC   Genworth Mortgage Insurance Corporation MGIC Mortgage Guaranty Insurance Corporation PMI PMI Mortgage Insurance Co PMI Insurance Co  and PMI Mortgage Assurance Co  UGI  United Guaranty Residential Insurance Company and United Guaranty Mortgage Indemnity Company  RMIC  Republic Mortgage Insurance Company   Republic Mortgage Insurance Company of North Carolina    Triad Triad Guaranty Insurance Corporation  Essent Essent Guaranty

MI company cannot cancel MI coverage. Contact your lender and servicer and have them request cancellation.

If mortgage payments are made on time and you have enough equity in your home, cancelling your MI shouldn't be difficult at all. 
You may be able to get a cash refund.

Cancellation based on original value According to the Homeowners Protection Act of 1998 (HPA), ask your lender to cancel mortgage insurance when the mortgage balance reaches 80% of your home’s original value, either because: – You’ve made all of your scheduled payments or – You’ve made extra payments to reduce the principal balance ahead of schedule In addition to your good payment history: – 

Your property value must be at least the same as its original value and – There are no subordinate liens on your property If you meet these requirements, your lender must cancel the mortgage insurance on your loan. Cancellation based on current value 

You can also ask your lender to cancel mortgage insurance based on your equity due to your home’s value appreciating. (This scenario is not covered under the HPA, and lender/investor requirements may vary.) In addition to your good payment history: – If your mortgage is at least 2 years old but less than 5, you generally need at least 25% equity in your home – If your mortgage is more than 5 years old, you typically need at least 20% equity – Your lender will typically require an appraisal to verify your home’s value Your lender may have additional requirements. 
Automatic cancellation: According to HPA, your lender cancels mortgage insurance when: – You reach 22% equity in your home based on the original property value and – Your mortgage payments are current. Note there are lawsuits with homeowners against servicers who did not do this in a timely manner. I don't endorse the trust them scenario.

Homeowners Protection Act of 1998 –  effective in 1999 – establishes rules for automatic termination and borrower cancellation of private mortgage insurance (PMI) Law applies to loans closed after July 29, 1999 for the purchase, initial construction, or refinance of a single-family home. These protections do not apply to government-insured FHA or VA loans or to loans with lender-paid PMI.

For home mortgages signed on or after July 29, 1999, your PMI must – with certain exceptions – be terminated automatically when you reach 22 percent equity in your home based on the original property value, if your mortgage payments are current.

Your PMI also can be canceled, upon your request – with certain exceptions – when you reach 20 percent equity in your home based on the original property value, if your mortgage payments are current. One exception is if you have not been current on your payments within the year prior to the time for termination or cancellation. Another is if you have other liens on your property. A third is the property cannot have declined in value from the original value. For these loans, your PMI may continue. .

If your home loan opened before July 29, 1999, (frankly few are that old, most were sold or paid)  ask to have the P M I  or MI canceled once you exceed 20 percent equity in your home. No federal law requires your lender or mortgage servicer to cancel the insurance, but write the letter anyways. The savings could be great

Caroline Gerardo 
NMLS 324982

949- 784- 9699