4/15/2013

HARP 2.0

FNMA and FHLMC have announced that loan limits for HARP 2.0  remain unchanged for 2013.
 
Unlimited LTV (loan to value) for owner, non-owner and investment properties.
Credit score limit has been reduced to 620.
Second mortgages may be subordinated up to any combined loan to value.
 
HARP loans are limited in California to be under $ 625500 for High Balance Loans sold and delivered before May 31, 2009. This means your loan should have closed in the beginning of April 2009 or before to have been delivered to Fannie Mae or Freddie Mac.
Eligible homeowners who are current on their mortgages but have been unable to take advantage of today's lower interest rates because their homes have decreased in value, may now have the opportunity to refinance. Through a refinance under HARP, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they own or that they guaranteed in mortgage backed securities. This is great for all California residential property owners who are underwater as mortgage rates are at all time lows and your payment can reduce.
 
Other requirements to lower your payment under HARP 2.0 are:
 
The mortgage MUST be "owned" or guaranteed by Fannie Mae or Freddie Mac
The mortgage CANNOT have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
The borrower MUST be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months.
Homeowners who are currently delinquent or have been more than 30 days overdue during the past 12 months generally will not qualify. Contact your servicer to see if a modification under the Home Affordable Modification Program is an option for you.
Loans with LTVs (loan to value) greater than 125% - the mortgage payment history must be 0x30 for last 24 months.
Hardest Hit Fund for Arizona home loans eligibility changes can be viewed at:  http://www.azhousing.gov/
Nevada has run out of funds to continue HARP 2.0 program.
HARP Refinance Program maximum Debt To Income Ratios allowed:
Primary residence: 55%
Second home: 50%
Investment property using subject rental income to qualify: 45%
Investment property not using subject rental income to qualify: 50%
 

4/09/2013

Peace With Crows


This is an update to my story about trying to deal with an overpopulation of crows in Laguna Niguel California. The crows are aggressive and tear up lawns, and destroy property. Rather than the typical pest control approach, I have found success dealing with the many black birds as friends who have a right to my hillside and ocean view in Orange County. Old post here: http://cgbarbeau.blogspot.com/2012/11/crow-prevention.html

Sunflowers in my garden in Laguna Niguel

Crow on streetlight in Dana Point
I experimented with the following procedures:

Feeding the crows sparingly while I am outdoors in my garden.
Not acting hostile or shooing them away, sometimes allowing them to eat my sunflowers when they go to seed.
Planting three kinds of clover in the lawn areas, and plenty of wildflowers and seed bearing annuals that offer bright color and food for a variety of song birds, and the crows.
Never buying any chemicals for lawn and garden, finding natural balances.
I have been more than happy with the results. Some solutions lead to surprises.



My clover lawn has prevented the crows from tearing up the roots to be able to eat those large white grubs. Because its roots are deeper and winding the crows don’t bother with my lawn but also I do still randomly befriend them.

I still have the grubs in the lawn and continue to use NO pesticides no herbicides and no chemicals in all of my garden. I allow the clover to go 4 weeks and then mow it. After mowing it is the brightest neon green. I think it is much prettier than any rolled out sod.

The clover mix works and lasts through the summer heat. Because I just threw red white and pink seeds out, they seem to rotate in the seasons as to which variety is the strongest. The white likes full sun and heat while the red flowering prefers cooler and shade. The clover puts nitrogen into the soil and the clippings compost in days into soil that has added natural nitrogen.

 

I water much less, waiting for the clover to actually look wilted dry.  I didn’t have the sprinklers on all winter or so far this spring. In the summer my “grass areas” only need watering once a week in the morning before light.  I am conserving water (making my bill with Moulton Niguel Water less) and saving money on an expense.

 

As to the crows--- There is a large pair and my teenagers have named about five of them that we can recognize by injuries to their wings, personality and calls. The crows never “poop” on our cars, but yes on other people’s cars. We have an elderly Golden Retriever who likes to sunbathe and the crows seem to know her as well.  I put out peanuts or the heel of sprouted bread or a piece of fruit in the same spot in the front maybe once a week and they are gracious about the treats.

 

Miraculously the crows have left alone the mourning doves nesting in my front yard gazebo and the towhees who tap at the brass reflections on my front doors. Fidalgo (a California towhee who has been around a year) is free to obsess about the bird in the reflection of the windows in my living room. I put this fake blue bird to clue him that the mirror reflection is not a towhee but he cannot stop himself. The towhee is another story, but in short they are terrific because they eat spiders, snails and pill bugs.

 

All things in balance, the crows were here first.

 

4/07/2013

Dana Hills Lacrosse Games

Dana Hills High School, Dana Point, California
 Lacrosse Junior Varsity Remaining Games:

My son Carson Barbeau # 54 who would suspect this sweet face will knock the ball out of your net every time?

Tuesday   April 16th  7:30 PM in Dana Point
Thursday April 18th  7:00 at Laguna Hills High School
Thursday April 25th  7:00 at Capo Valley High School
Saturday  April 27th  3:30 at Dana Point

link to photographs of the players in action on Flickr here

http://www.flickr.com/photos/63729822@N08/



Mortgage Rates Falling


 MORTGAGE RATES TAKE ANOTHER DIP
 
 
What can I do to help your family?
Is the lowest - cheapest rate the right choice?
How can you tell by calling banks and checking their websites?
Will they be able to close on time after you paid upfront fees?
 
Whatever your financial goals may be, there ways to analyze if you should refinance your home or rental property. I offer a wide array of home loans to fit your needs and lifestyle. Lower your mortgage into the three's for 30 year and twos for 15 year...
A few options are listed below.

What are your families’ life goals? What plans are you making for the future?
  • A stable monthly payment. If you have an adjustable-rate mortgage, a fixed-rate mortgage translates into a predictable payment of principal and interest that doesn’t change over the life of the loan.
  • To free up cash in your monthly budget. Refinancing to a longer-term mortgage or securing a lower fixed rate can reduce your monthly loan payment, allowing for greater cash flow. This can help with budgeting for upcoming expenses such as additions to your family or on the opposite spectrum -higher expenses because you have children going to college.
  • Paying off your mortgage faster. Reducing the term of your mortgage – usually from a 30-year mortgage to a 10-, 15- or 20-year mortgage – will accelerate your loan payoff and help you build equity more quickly. It is important that you look into the next five and ten years, as committing to making a higher payment may cause undue stress in the future
  • Managing events in the future How long will you own the house? What is coming in the next years? Is the size of the property right for five and ten years from today?
  • We have programs even if you are upside down or your own bank turned you down  I have been closing mortgage loans in California for almost twenty five years.
To better understand the steps involved in refinancing a home,  visit my website or better yet, let’s talk about it. Get out your current mortgage statement and a pencil and paper. We will work together to find the lowest interest rates, improve your FICO before you apply as that relates to the mortgage rate, and talk about what is the best course of action for you.
If you or someone you know would like to learn more about refinancing options, please keep me in mind. I’m always available to answer your questions and to provide the information you need to make a decision that’s right for you.
In general I will encourage you to find the lowest cost loan rather than paying large fees to make a temporary fix.






Refinancing may increase the total number of monthly payments and/or the total amount paid when compared to your current situation.
Rates change often and sometimes several times during the same day.
The relative benefits of these alternatives may vary over time and will depend on individual circumstances. The longer you keep the property and your loan at the new rate, the more interest savings will be realized when compared to your current situation. Lifetime interest savings amount assumes no prepayments on current loan. The real estate market in Orange County California has increased, let’s talk about the value of your home, what is happening in Newport Beach, Laguna Beach, Laguna Niguel, San Clemente, Corona Del Mar and much of Coastal Communities in California. Reports show values within ten miles of the ocean increasing faster than other areas of California.
Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice
 


WHAT YOU NEED TO GATHER:


Driver’s license or other photo ID’s

Home address(es) for the past 2 years

Paycheck stubs for the last 30 days

W-2’s and Personal FEDERAL Tax Returns for the last 2 years sign page 2 of taxes

If self-employed or commissioned, personal and/or business tax returns with schedules

for the last 2 years (year-to-date profit and loss statement and balance sheets may be required)

Employment information for the past 2 years, including employer, job title, tenure and employer’s addresses

Most recent 2 months statements (all pages) from banks or other financial institutions

Source of any non-payroll deposits (order copies through your bank)

Property addresses for all real estate you own

Mortgage loan statements for all mortgages

Other insurance and HOA statements for all properties



4/05/2013

Mortgage Rates Fall

FNMA up like a rocket

What does that mean?

MORTGAGE RATES FALLING

Call for a quote today or this weekend....  (949) 784-9699 Caroline Gerardo NMLS #324982

Interest  rates for a 30-year fixed mortgage average dropped 3.5% percent in the week ended today, down from 3.57 percent, according to  Freddie Mac (FMCC) . The average 15-year rate slipped to 2.74 percent from 2.76 percent.

CORELOGIC reports U.S. home prices rose 10.2 percent in February from a year earlier, the most since March 2006. March 2013 was the 12th consecutive month of  gains as low borrowing costs drove demand with no inventory for residential real estate  i.e.: few homes on the market almost Nationwide.  Seems everyone is waiting for the happy days to be here again. With mortgage rates taking a dip in California it is expected to heat the market higher.

Values in Newport Beach, Laguna Beach, Laguna Niguel, Dana Point and Huntington Beach have climbed higher in year-on-year than the national average, almost 18% increase. Orange County to take off like a rocket?

4/03/2013

Mortgage Rates California

Mortgage Rates Edging up then Down :)

From http://www.bloomberg.com/markets/rates-bonds/
Photo from trip, "Lioness camouflaged sticking out her tongue" photo by Caroline Gerardo copyright all rights reserved
March 2013 came in like a lion and out like a lamb in mortgage rates. Month end interest rates in California were flat or bouncing on the bottom. Will April be as kind? Indications seem to push home loan rates just an eighth higher, but upward rates will slow our recovery. Bond traders taking some profits early today. Right now this hour indications might close the bond market to lower rates today and tomorrow by fractions. My crystal ball says until the end of April we will see upward by another sixteenth, unless more countries in the EU stir the brush and make that lioness mad.
In Orange County and specifically Newport Beach and Laguna Beach there remains a frenzy to purchase property and close before the next storm.

10-Year Government Bond Yields

AmericasYield1 Day1 Month1 YearTime
United StatesMore US Treasuries1.84%-20-4609:15:16
Canada1.86%-2+6-3409:15:21
Mexico4.94%-1-10-12609:32:00
Brazil9.96%-5+53-26504/02/2013


 

4/02/2013

Is Refinancing Worthwhile?


How do I know if it is worthwhile to refinance my loan?
I owe $ 110000.00 On my first at 6.375% 30 year (payment $ 686.24) and $55000 at 6.95% 15 year ( payment $ 492.81) on my second. This is a second home worth about $550000. I want to get rid of the second HELOC and get the payment down. My FICO score is around 760 the property is in Laguna Niguel, California

 CAROLINE GERARDO
NMLS #324982  W J Bradley Mortgage Capital LLC. 
20341 SW BIRCH STREET # 330     Newport Beach, California 92660
(949) 784-9699
http://mywjb.com/caroline-gerardo/

Mortgage amount: $
Mortgage term: years or months Interest rate: % per year Mortgage start date:
Monthly Payments: $


Verse existing payments of $1179.73

Because you want to consolidate your second in to a lower first, the refinance is considered cash out. While lenders have gotten more conservative about cash-out refinances, owning your second home with low loan to value at $550,000 -- especially with your credit score – a make sense decision for our Underwriters.

The downside of a first mortgage refinance is the higher closing costs associated with that mortgage. The national average for closing costs on a $200,000 loan in 2012 was $2590.  Besides lowering your payment, you should definitely look at a shorter-term mortgage, like a 15-year fixed-rate mortgage, so you don't end up spending a ton of money on interest by extending out to 30 years. As I write this, W J Bradley's national average for a 15-year fixed-rate mortgage is 2.875% percent or 2.911% APR

The interest rate differential between a new 15-year fixed-rate mortgage and your existing 6.375 percent mortgage on your second home should give you enough of a reduction in interest expense to justify the refinance on its own.

Even if you decide to refinance thirty years, the payment is going to reduce $ 391.99 per month. We can close a refinance in less than twenty nine days, let's save you some money.



 

3/30/2013

Sunset


2010-08-06 22.07.23

Tomorrow is Easter Sunday, and though it is foggy now at my house in Monarch Beach California, the sunset was beautiful. Here in paradise there were few open houses and only the grocery store was busy. The photograph above is one of a few I will share from a trip to Africa. I love the ten minutes as the sun goes down, when we all ought to say a prayer and be thankful. Happy Easter tomorrow or Passover, I'm busy cooking for my crew tomorrow.

Caroline Gerardo

3/29/2013

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

3/28/2013

Cheap Home Green Maintenance Orange County


 

Sunflowers in my Home
A Dozen Cheap HOME Green Maintenance Tips for Your Orange County Home

1.     Used coffee grounds I save the grounds from my coffee to use in the following situations: battles against ants that don’t care for the acid. Ground can be added to compost, in pots as mulch, around the perimeter of your foundation. If you don’t drink coffee, Peet’s or Starbucks coffee houses in Newport Beach, Laguna Beach ect will be happy to give you a couple pounds for free. Supply them with some plastic container, even a plastic trash bag and offer to save them from walking out to the dumpster.

2.    Used pool filter Diatomaceous earth also known as D.E., diatomite, or kieselgur/kieselguhr, is a naturally occurring rock that feels like pumice, it also comes in food grade This fabulous substance is used in swimming pools to catch dirt and bacteria. Snails and ants hate it because it cuts the gentle tissues of these creatures. If you don’t have a pool, ask your neighbor or a local pool man to rinse out those filters on your lawn or throw some of it in a plastic bag for you. This can also be sprinkled around the perimeter of your home and garden to keep away pests, snails and slugs. It must be re-applied as it tends to get washed into your soil. I don’t advise you place in dog or pet sleeping areas as it has a rough feeling to the sand. With so many homes that have pools in Orange County California it should be easy to get a bag of this free.

3.    Plant a lemon tree – put it in a pot and do not overwater. Lemon juice is useful in many ways. Lemon juice removes stains, irritates ants, has a deodorizing quality and is wonderful to make lemonade. I have two types: a Meyer and a Bearrs Lemon. It is nice to have different types to bear fruit at different times.

4.    Start a compost pile  Layer grass clippings, only vegetable cuttings, nothing with rust or pest spores, nothing that has animal or oil products

5.    Four products to clean everything: vinegar, borax, dawn soap, peroxide

6.    Remove firewood stored near the home. Firewood should be stored at least 18 inches off the ground at least 2 feet from the structure. Putting firewood near your foundation is a welcome sign for spiders, ants, termites and mice.

7.    Check your gas- and battery-powered lawn equipment to make sure it is ready for summer use. Clean equipment and sharp cutting blades will make yard work easier Set the lawnmower to 4 inches high, your grass is stressed by giving it a short haircut. Water the grass less and allow it to force the roots to search deeper. Once a week is enough in coastal Orange County, let it look dry wilted then water. Don’t use pesticides or herbicides on grass. Welcome birds by putting out some millet or sunflower black oil seeds (“oilers”) have very thin shells, easy for virtually all seed-eating. Don’t put out a huge portion, the purpose is to entice them to eat the bugs and grubs in your grass.

8.    Change your filters every season and once a month in the summer. Find a heating and cooling contractor clean to service the outside unit of the air conditioning system. Clean coils operate more efficiently, and an annual service call will keep the system working at peak performance levels. I can recommend a couple contractors who are fair in Orange County serving from Huntington Beach, Newport Beach, Laguna Beach, Laguna Niguel and as far south as San Diego. And speaking of filters, the filter in the hood of your kitchen range, run it in the dishwasher and grease is gone.
Photograph shows a simple use of old pumpkin peel to stop run off
 
 
9.    Gravel fill low areas in the yard or next to the foundation should be filled with gravel and compacted soil. Spring rains can cause yard flooding, which can lead to foundation flooding and damage. Also, when water pools in these low areas in summer, it creates a breeding ground for insects

10.  Simple repairs include caulking or installing a variety of inexpensive door/window insulating strips or plastic sheeting. (You can even get help from Uncle Sam on these items, but only until the end of this year.)

11.  Extension cords are for temporary use only. Those cords sitting out in the yard that have weathered the winter or inside the house plugged in on a permanent basis need to go. Check all cords for potentially dangerous nicks or frayed spots. If you have fountains, check those as well for cracks as can be dangerous combination of electricity and water around your home.

12.  Do not store Old paint near the furnace or water heater. It is a Big fire hazard. In general it will be a dried up rock when you get around to opening the can. Peel the labels off and put them in a notebook for future reference, or simply writing the color and brand details for the paint used in each room on the back of the light switch plate there. Or write the name and number and brand in an email and send it to yourself label PAINT FILE. It is against the law to dump wet paint in landfills and our local trash CR &R in Orange County has information about when and how you can dispose this safely Information here: http://www.crrwasteservices.com/cities/orange/residents/

Conservation and rain in an ecosystem
 
 

 

3/24/2013

Rush to Buy

Full text of the original Responsible Homeowners Act
http://www.govtrack.us/congress/bills/112/s3085/text

Mortgage Regulation has not addressed every American, Californian or Borrowers / homeowners in Orange County. In the panic to make constituents happy, a bill was slapped together trying to address the largest number of distressed homeowners. It was hurry, hurry make somethong happen. In the end, the wind shifts and the rush was perhaps misguided.
Newport Beach sunset without any frozen yogurt


Reminds me of a analogy, a distant story:

Remember when 31 flavors was to die for?
Then Hagen Daz opened and bubble gum ice cream was forgotten.
Cold Stone Creamery next delivered the smell in hand crafted flavors that we never knew we desired. We rushed to the mall to buy.

The market in ice cream shifted to Golden Spoon but now there are twenty yogurt places near where I live in Laguna Niguel. I can walk to any and choose. We've moved to Cherry on Top or some other brand... but what locals in Orange County really seem to crave is healthy Nektar, Active Culture, Banzai Bowls... who is next? Where will we run to next?

The mortgage business is like that right now. Buyers hurry to find a property to make an offer. They  are a spin of emotions.
A borrower was rather dismayed today that their offer on a home in Newport Coast was "beat out" by someone else. They seemed panicked.
My advice twice today was, "nothing too good or too bad lasts too long." This market with no listings and frenzied offers will break into something new. Some other house will come along, it may not be the exact same calories or square footage, but don't go mad over ice cream or yogurt places. This might be a fad.

Something will come along that is great in its own time.

Mortgage rates aren't going fire sale "free yogurt" or some jump in the market, "gold bullion" - yet.