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			<title>Mt Shasta Lender w/ some Good News !</title>
			<description>Mt Shasta Lender w/ some Good News !</description>
			<author>admin</author>
			<pubdate>Friday 05th of December 2008 07:25:02 PM</pubdate>
			<subject>Mt Shasta Lender w/ some Good News !</subject>
			<content><![CDATA[Email







 
 


 
 
 
  
  


 
 
 


 
 
      Home    Our Services    Programs   Daily Rate Quotes   Contact
 December 2008
 
 


 
 
  
Rates Plunge !!
 Nov. 26 Rates plunge   U.S. mortgage rates plunged by the most in at least seven years yesterday as a Federal Reserve pledge to buy $600 billion of debt succeeded where seven cuts in the central bank&#8217;s benchmark rate had failed.   The average rate for a 30-year fixed mortgage fell to about 5.5 percent last night after starting the day at 6.38 percent.   It was the biggest one-day drop in at least seven years, Today, the rate is &#8220;bouncing around&#8221; between 5.63 percent and 5.9 percent.   Home resales have hung-up because rates are high and because mortgage money has been scarce.  The Fed&#8217;s move may hasten the day when we finally find a bottom.   &#8216;Rates Are Going Down ?&#8217;   &#8220;Instead of buying stocks in stupid banks, the government finally is going to make a move to clear assets from the market.&#8221;  Rates for a fixed rate mortgage with no fees or closing costs tumbled to as low as 5.50 percent from about 6.25 percent.   "Refinancing Gets Lift"   Homeowners who have enough equity to refinance their existing mortgages will get a boost as well.   You&#8217;re going to see an immediate impact on people who can refinance, taking their 6.5 percent interest rate to 5.5 percent or so. That can put $200 +, a month in their pockets.&#8221;    &#8216;One-Time Jolt&#8217;   The Fed&#8217;s move was a &#8220;one-time jolt&#8221; that should have lasting effects.  You don&#8217;t see many days when one thing moves rates like this.   Hopefully we'll see a pickup in demand for housing The market right now is not about rates, which are affordable, but about a supply of homes that is very high. The market won&#8217;t turn around and prices won&#8217;t stabilize until supply and demand become more normal.  
Business Introduction !!
  Many Siskiyou County Realtors and Brokers I already know and have worked with in the past. There remains a number of you that I havn't had the pleasure to work with.  This newsletter will be comming to you on aproximately a monthly basis. It's intended to introduce myself to those of you that I havn't worked with and to stay in touch with everybody.   There are many challenges in both our industries ( Real Estate) and the Mortgage business, however there is Money out there to be borrowed and loans being closed every day, contrary to what your hearing in the media.  The articles I'll be bringing to your attention will be, current conditions in the Mortgage industry, which will provide options for your buyers, regarding good rates, new programs and reliable alternatives.   Please call for a up to the minute quote or to discuss any challenging scenarios.   
 


 
 
    Rates Plunge !!
  Business Introduction
   
 


 
 
  
          Rate Watch! 
  Conforming   30 Year Fixed rate  5.625 % -  0pts.     Nonconforming  
 30 Year Fixed rate
 6.00%  0pts.   *Limited Time Only  Special Temporary Govt.   Program   ________________________   "Interest Only" Option Payments   Available on all these   programs    Call for more Info:  Greg Hengel  530-926-1111  800-890-9692    
 
 ________________________________________________ Greg Hengel P.O. Box 510, Mount Shasta, Ca 96067 (530) 926-1111 or (800) 890-9692   Market Financial Group is Licensed by the Ca. Dept of Real Estate # 01239714 Copyright&copy; 2005-2008 Greg Hengel. All rights reserved. 
 
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			<link>http://marketfinancialgroup.net/sendstudionx/display.php?List=11&amp;N=82</link>
		</item>
				<item>
			<title>Lowest Fixed Rates in SIX years - Call Greg</title>
			<description>Lowest Fixed Rates in SIX years - Call Greg</description>
			<author>admin</author>
			<pubdate>Thursday 04th of December 2008 01:25:02 AM</pubdate>
			<subject>Lowest Fixed Rates in SIX years - Call Greg</subject>
			<content><![CDATA[Email







 
 


 
 
 
  
  


 
 
 


 
 
      Home    Our Services    Programs   Daily Rate Quotes   Contact
 December 2008
 
 


 
 
  
Rates Plunge !!
 Nov. 26 Rates Plunge   U.S. mortgage rates plunged by the most in at least seven years yesterday as a Federal Reserve pledge to buy $600 billion of debt succeeded where seven cuts in the central bank&#8217;s benchmark rate had failed.   The average rate for a 30-year fixed mortgage fell to about 5.5 percent last night after starting the day at 6.38 percent.   It was the biggest one-day drop in at least seven years, Today, the rate is &#8220;bouncing around&#8221; between 5.63 percent and 5.9 percent.   Home resales have hung-up because rates are high and because mortgage money has been scarce.  The Fed&#8217;s move may hasten the day when we finally find a bottom.   &#8216;Rates Are Going Down ?&#8217;   &#8220;Instead of buying stocks in stupid banks, the government finally is going to make a move to clear assets from the market.&#8221;  Rates for a fixed rate mortgage with no fees or closing costs tumbled to as low as 5.50 percent from about 6.25 percent.   "Refinancing Gets Lift"   Homeowners who have enough equity to refinance their existing mortgages will get a boost as well.   You&#8217;re going to see an immediate impact on people who can refinance, taking their 6.5 percent interest rate to 5.5 percent or so. That can put $200 +, a month in their pockets.&#8221;    &#8216;One-Time Jolt&#8217;   The Fed&#8217;s move was a &#8220;one-time jolt&#8221; that should have lasting effects.  You don&#8217;t see many days when one thing moves rates like this.   Hopefully we'll see a pickup in demand for housing The market right now is not about rates, which are affordable, but about a supply of homes that is very high. The market won&#8217;t turn around and prices won&#8217;t stabilize until supply and demand become more normal.  
Rates Lowest in  SIX Years... !
  FIXED RATES Lowest in SIX years   Is Your ARM About to Reset?   Are you one of the 10 million homeowners in the country with an adjustable rate mortgage (ARM)? If so, you may be concerned about what your payments are going to be after its interest rate resets. Depending upon when you took out the mortgage and how long your initial rate period was, you could be facing a substantial rate increase.   But this year nearly $1.5 trillion worth of ARMs are due to reset at a higher rate. Not only have interest rates increased but the gap between the interest rate available through fixed and adjustable rate mortgages has narrowed. Those who took out an ARM for less than 4 percent back in 2003, for example, could see their mortgage rate jump to 7.5 percent after adjustment.   If you&#8217;re concerned interest rates may continue to rise and want the security of knowing your monthly payment won&#8217;t rise to an unaffordable level, you may want to consider refinancing to a fixed-rate loan. You needn&#8217;t worry that you&#8217;ve missed the boat in terms of locking in a good rate; today&#8217;s rates are the lowest they have been in SIX years.   No matter what your situation, it&#8217;s important to be prepared for your rate adjustment. You may want to call me to calculate how much you will pay after your ARM adjusts and find out about all of your available options. By knowing what to expect and by planning ahead, you can stop worrying about what the future may hold and start coming up with a solution that can meet your financial needs.    Greg Hengel  P.O. Box 510, Mount Shasta, Ca 96067  (530) 926-1111 or (800) 890-9692   Market Financial Group is Licensed by the Ca. Dept of Real Estate # 01239714    Copyright&copy; 2005-2008 Greg Hengel. All rights reserved. 
 


 
 
    Rates Plunge !!
  Lowest Fixed Rates in SIX years
   
 


 
 
  
             Rate Watch!  
  Conforming   30 Year Fixed rate  5.625 % -  0pts.     Non Conforming 
  
 
 30 Year Fixed rate
 6.00%  0pts.    *Limited Time Only  Special Temporary Govt.   Program   ________________________   "Interest Only" Option Payments   Available on all these   programs    Call for more Info:  Greg Hengel  530-926-1111  800-890-9692    
  

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
  

 
 


 
 
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			<title>If You Have a 3 or 5 Yr. Fixed Mtg. that&#039;s &quot;Recasting&quot; Now&#039;s the time for a 30yr Fixed !</title>
			<description>If You Have a 3 or 5 Yr. Fixed Mtg. that&#039;s &quot;Recasting&quot; Now&#039;s the time for a 30yr Fixed !</description>
			<author>admin</author>
			<pubdate>Tuesday 19th of August 2008 06:10:02 PM</pubdate>
			<subject>If You Have a 3 or 5 Yr. Fixed Mtg. that&#039;s &quot;Recasting&quot; Now&#039;s the time for a 30yr Fixed !</subject>
			<content><![CDATA[Email







 
 


 
 
 
  
  


 
 
 


 
 
      Home    Our Services    Programs   Daily Rate Quotes   Contact
 
 
 


 
 
 
Fannie Mae Limit Increase?
 The Department of Housing and Urban Development has issued the new loan limits for Fannie Mae, Freddie Mac, and Federal Housing Administration loans. Congress raised the loan limits as part of the economic stimulus bill that President Bush signed on Feb.13. HUD has computed the new loan limits, which are based on 125% of median home prices, with a $729,750 cap.  What this means for You! Essentially, All homeowners that currently have a mortgage in excess of the current $ 417,000.00 conforming limit will be able to refinance their &#8220;Jumbo&#8221; mortgage at conforming pricing. In many cases the difference in pricing between &#8220;Conforming loan&#8221; pricing and &#8220;Jumbo loan&#8221; pricing has been as much as a full percentage point.  Therefore all you homeowners with loans amounts in excess of $ 417,000.00, in selected areas of the state will likely be able to refinance NOW and receive rates you never could before. Call me and I&#8217;ll go over the details with you. 
 
Is There Really A Mortgage Crisis ?
  We've all read the stories and seen it on the news. Lenders are going out of business, investors are pulling out of the mortgage market, and people are losing their homes. It's been declared a 'Mortgage Crisis' by the media, but is it really?   Remember the old days of home finance? If you wanted to buy a home, you had to work hard, save money, establish credit, and manage your money well.   The big lending institutions, FNMA (Fannie Mae) and FHLMC (Freddie Mac) came up with guidelines based on millions of loans, which would lessen the risks involved in lending.   In order to qualify for a loan, you had to start with a 20% downpayment, have enough money left in the bank to pay your mortgage if you hit tough times, and you had to earn enough to make the monthly payments and pay all of your other debts, too. Your debts had to represent, in most cases, no more than say, 45% of your monthly income.   Next, you had show, through your credit report, that you had established a pattern of honoring your obligations, paying your bills on time, and not over extending yourself. A credit score of 680 or better would prove it.   Loans that met these and other guidelines were called 'conforming loans'. Since lenders and investors make, buy and sell loans, conforming have proven to be the most stable and easiest to sell.   The system worked. Every now and then, someone would default, but buy and large, it was considered a safe bet to loan to people under these circumstances. Lenders and investors would get a good stable return on their investments, and millions of people were able to buy homes.   To meet the needs of some of the buyers who couldn't meet the borrowing criteria, the government came up with a couple of programs. VA loans, which helped our veterans qualify, and FHA, for low income families. Both were guaranteed by the government.   Still, there was an unmet demand. There were millions of people who, because of credit, income, or assets didn't qualify under standard guidelines, and who didn't meet the requirements for government programs. At the same time, there were investors who were seeking to make more than what they could off of conforming loans.   New loan programs with new names, started popping up. 'Jumbo', 'non-conforming', 'Alt-A', 'Pay Option' and the dreaded 'sub-prime' were just some of the programs lenders came up with, to make more loans, and more money.   Lenders and investors offered loans to these 'outside the box' borrowers, but increased the rates for every exception to the conforming guidelines.   So, let's say that the borrower who could meet the guidelines, called an 'A paper' borrower, gets an interest rate of 6%.   For non-conforming, they may start with a base rate of 6.25%. Then, for every additional risk factor; lower credit score, high debt to income, interest only, unverified income, no assets, etc., the rate gets bumped, .25% here, .50% there, to the point a borrower might be paying 9% or more for a mortgage when the 'A-paper' borrowers were paying 6%.   The broker gets paid for arranging the loan, the lender sells the loan to an investor, the investor gets a higher rate of return, and the borrower gets house. The security for borrower and investor is the ever increasing value of real estate. By the way, if you have a 401k, mutual fund or other investment or retirement account, there's a chance that you have mortgage backed securities in your portfolio. You may be one of the investors we're talking about here.   What started out as small exceptions then got ridiculous. There were stated income, stated asset, and even what's called a 'no doc' loan, where basically, they get your name, address, social security number and credit report. You don't have to tell them where you work, or even IF you work. You didn't have to provide ANY documentation. People with credit reports showing bankruptcies, collections, previous defaults, and late payments, people who PROVED they did not believe in honoring their financial commitments, or were simply incapable of it, were being granted loans, at higher rates, of course.   When the rules are that loose, there are plenty of people willing to take advantage; lenders, investors, brokers and borrowers all share in the blame.   One client said, "Wow, Mervyns wouldn't approve a store credit card for me, but I can buy a house! That's crazy!"   It was crazy, and we all know what happened. These folks struggled. They didn't get the raises they thought they would. They couldn't afford it in the first place. The market slowed. Prices fell, they started to default. A lot of lenders and investors got burned.   So what do they do? They get back to basics.   Today, although there are plenty of alternative programs available, for most people, and most lenders, if you want to buy a house, you have to have 20% down, be able to prove your income, have good credit, and prove the ability to make your payments.   It's back to basics. That's all it is. There are still second mortgages, stated income, and other exceptions, but guidelines are a lot tougher. Soon enough though, investors will want to earn more, and they will come back to meet the needs of the 'non-conforming' borrower. I think they'll be a little more careful this time around, at least for a while.   By the way, I've got this borrower; he can't prove his income, his credit isn't so good, he doesn't have money for a down payment, but he's planning on getting a new job and his wife's getting a raise. Care to invest in that one?    
 


 
 
    Fannie Mae Limit Increase ?  
 Is There Really A Mortgage Crisis ?
  
   
 


 
 
  
 Rate Watch!  
 Conforming
 
 15 Year Fixed rate
 6.250%  0pts.  
 30 Year Fixed rate
  6.625  0pts. 
  Jumbo 
  30 Year Fixed rate
 *6.750%  0pts.    *Limited Time Only  Special Temporary Govt.   Program   ________________________   "Interest Only" Option Payments   Available on all these   programs    Call for more Info:  Greg Hengel  800-890-9692    
 
 ________________________________________________ Greg Hengel P.O. Box 510, Mount Shasta, Ca 96067 (530) 926-1111 or (800) 890-9692  Copyright&copy; 2005-2008 Greg Hengel. All rights reserved. 
 
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