Bruce's Blog

Happy New Year - Fixed Rate Mortgages UNDER 4%!

2012-01-06T13:40:00.000-08:00

Is your mortgage rate over 4%?
Call or email me today and let me show you how you can save by refinancing! *FREE REFI ANALYSIS + 3 SCORE CREDIT REPORT!

I have direct access to hundreds of wholesale home loan lender's programs. I am not limited to just one lender's rates or qualifying requirements - which assures you that I will secure the lowest rate and fee loan for your specific qualifications. Unlike the online mortgage company representative, or local bank loan officer, I look out for your best interest! I will save you time, money, and lender hassles! Ask about "No Cost" Lender Credit and "Rate Drop" programs too!

Considering purchasing a home? With rates under 4% do you have any idea how much home you can really buy?
at $1000 monthly?
at $2000 monthly?
at $3000 or more monthly?
Keep in mind, as rates increase, those same payments will buy a lot less home!
Now is a great time to maximize your buying power --while rates and prices are low!

Call or email me today for *FREE BUYING POWER ANALYSIS!

Bruce W Johnson

"Your Real Estate Pro since 1986"
CA Dept of Real Estate Broker License #00941159
Nationwide Mortgage Licensing System ID #329513

Direct: 925-691-9909

* I can assist with financing, purchasing, or selling a home anywhere in California!

To All My Clients Past and Present....

2011-12-23T15:18:00.000-08:00

&
Best Wishes for 2012!

Thank You for your support and referrals!

Sincerely,
Bruce

East and South Bay Counties - Average Sales Prices

2011-12-23T15:10:00.000-08:00

source: Apple Appraisal

If you are considering buying or investing in real estate, NOW is truly the TIME TO BUY. The combination of reasonable prices + low rates makes it the most affordable time in decades. Remember, as rates increase, your buying power/purchase price decreases for the same monthly payment.

Revised HARP Refi Program - Details Released 11-15-11

2011-11-16T15:14:00.000-08:00

HARP 2.0 has been released by the agencies (Fannie & Freddie) and now lenders may incorporate them into their programs. How long will that take? We don't know. But here are the links to the original 11-15-11 agency bulletins:
Fannie Mae Bulletin
Freddie Mac Bulletin
In plain language, Fannie & Freddie would reduce fees and relieve lenders from some liability on home loans in order to lower the cost of borrowing to distressed homeowners. Fannie Mae, in its revised guidelines, said: “The lender is not responsible for any of the representations and warranties associated with the original loan.”

More info here: http://www.mortgagenewsdaily.com

As I indicated in my post on 10-27-11, lenders do not have to participate in these programs and may add their own overlay of restrictions to Fannie and Freddie Guidelines--as most did with HARP 1.0.

Contact me if you would like to be notified if and when lenders begin implementing this program.

Remember, as mortgage broker, I have access to hundreds of funding sources.

VETERANS DAY 11-11-11 - Thank You U.S. Veterans!

2011-11-11T13:04:00.000-08:00

As an American, but non-veteran, I truly appreciate everything you veterans have done,or are doing, to protect Americans and our way of life.

Thank you Veterans!

For all of your Benefits as a U.S. Veteran,

be sure to visit these sites:

VA - United States Department of Veterans Affairs

http://www.va.gov/

if you reside in California, you have added benefits:

Cal Vet - California Department of Veterans Affairs

http://www.calvet.ca.gov/

I proudly assist Veterans with their homeownership
and home financing goals.

Contact me for your:

No Obligation Financing and Home Purchasing Power Analysis

No Money Down Home Purchases
VA Home Loans
Cal Vet Home Loans

Obama announces Revised HARP Refi Program for underwater home owners -- will it help?

2011-10-27T15:04:00.000-07:00

That is yet to be seen, in my opinion.

To be eligible for the HARP refinance, your mortgage must still be either owned by Fannie Mae or Freddie Mac.

Please check here:
Freddie Mac
Fannie Mae

Home Affordable Refinance Programs --
Freddie Mac Relief Refinance Mortgage and Fannie Mae DU Refi Plus

HARP has been available to borrowers with Fannie Mae or Freddie Mac loans since the first inception of HARP. Theoretically, Fannie or Freddie borrowers are currently eligible for a HARP loan as long as their first mortgage loan-to-value "LTV" does not exceed 125%. Unfortunately, I have searched high and low with dozens, if not hundreds, of Fannie Mae and Freddie Mac funding sources and none of them will go to 125% LTV. Lenders may apply--and most do apply--underwriting overlays to lessen their risk on Fannie and Freddie underwritten loans. 105% LTV is the maximum I have located with those funding sources that are participating in HARP. It is not mandatory for a lender to participate. I have heard that, if you approach your current Fannie Mae or Freddie Mac lender/servicer, you may qualify for 125% LTV if your lender is participating in HARP. The key here is "if they are participating". Good luck.

Details of the new HARP II program are due out November 15th. Here are the expected "enhancements":

1) Removing the current 125% loan-to-value ceiling on fixed rate refinanced mortgages.

2) Waiving risk-based fees on borrowers who take shorter term mortgages and reducing those fees for others.

3) Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by Fannie Mae and Freddie Mac.

4) Extending availability of the program through the end of 2013.

All of the above sounds great in theory. However, since few, if any, lenders are going to 125% LTV now, what are the chances they will go over that without the cap? I am not holding my breath.

A few other tidbits about HARP loans:

A) You can only do a "rate/term" refinance of your Fannie of Freddie loan - so, no cash out for any reason (you can, however, cover costs in new loan amount).

B) You cannot pay off a 2nd mortgage with the new HARP loan. Your current 2nd lender must agree to subordinate (moving to 2nd position) behind the new HARP loan. This adds time and costs to the process.

C) If your loan has mortgage insurance "MI" now, it is next to impossible to refinance to a HARP loan.

D) If your loan does not have MI now, no MI is required on the HARP loan.

E) Rates and fees are higher on HARP as compared to typical Fannie or Freddie rates--and increase with LTV, credit scores, etc. That may change slightly with #2 above.

F) You still must qualify with a a clean mortgage payment history and demonstrated earnings abililty to repay debt.

G) If your loan now does not have MI, yet you have a bit less than 20% equity, you might benefit from a HARP loan--NO MI is required, unlike traditional loans with LTV's over 80%.

Some of you may benefit with this new HARP program by lowering your monthly payments. Unfortunately, you will still be upside down on equity. Will HARP help the economy? You tell me. HARP doesn’t address the massive majority of home owners that do not have loans owned by Fannie or Freddie. HARP also does little to keep borrowers from walking away from their negative equity. Consequently, short sales and foreclosures probably will not be dampened.

Please contact me for a free analysis of your current home loan, or if you would like a real home valuation Broker Price Opinion "BPO" at no cost.

Fixed Rate Mortgage Gauge as of: 10/18/2011

2011-10-18T11:55:00.000-07:00

Mortgage Rates are up, from all time lows, due to market volatility with both global and US money markets. However, rates are still great!

Conforming to $417,000
15 Year Fixed: 3.25 % to 4.375%
30 Year Fixed: 3.75 % to 4.875%

High Balance to $625,500
15 Year Fixed: 3.375% to 4.50%
30 Year Fixed: 4.125% to 5.25%

FHA to $625,500
15 Year Fixed: 3.25 % to 4.00%
30 Year Fixed: 3.875% to 4.75%

Note above are not rate quotes for any given loan scenario. No APR's have been calculated. Contact me for a specific quote, with APR, based on your situation and qualifications.

This is a market gauge based on a survey of several of my funding sources. Note that lower rates have fees, while higher rates are available with lender credit which may cover all closing costs.

Remember, I have access to dozens of wholesale funding sources with varying rates and qualifications; I shop not only rate and fee for you, but also make sure you will qualify with that specific funding source. You save time, money, and hassles with my services!

Rates fluctuate daily with the money market and are subject to change.

30 Year Fixed Rates under 4.00%!

2011-10-09T16:38:00.000-07:00

The rates have bumped up a bit from historic lows with recent economic reports. However, 30 Year Fixed Rates are still available under 4% for conforming loans of $417,000 or less. 15 Year Fixed Rates are close to 3%! Now is the time to take advantage of low low refinance rates or maximizing your buying power on a real estate purchase.

No Cost "lender credit" loans are available through many of my wholesale funding sources on owner occupied properties. Rates and fees vary depending on your qualifications (debt ratios, credit scores, employment histories, cash reserves), your property qualifications (including property type, loan-to-value, condition), impounds or not, and rate lock period required (shorter lock period have lower rates and fees).

Please contact me for your no obligation analysis or your qualifications, property evaluation, and real program quotes.

East and South Bay Counties - Average Sales Prices

2011-09-02T18:57:00.000-07:00

source: Apple Appraisal

Bad Stock Market = LOW LOW HOME LOAN RATES!

2011-08-10T17:05:00.000-07:00

The flight to safety from stocks to bonds has pushed yields down on mortgage backed securities--result:

BIG DROP IN HOME LOAN RATES!

LOCK IN NOW, before the market rebounds. CALL ME TODAY!

	30 Year		15 Year		7 Year
	Fixed		Fixed		ARM
Conforming $417,000	Rate	APR	Rate	APR	Rate	APR
Low Rate with Costs:	3.875%	4.135%	3.125%	3.325%	3.000%	2.90%
"No Cost" =Lender Credit covers Costs:	4.250%	4.250%	3.500%	3.500%	n/a
High Balance $729,750 URGENT
Low Rate with Costs:	4.25%	4.450%	3.375%	3.575%	3.375%	3.20%
"No Cost" =Lender Credit covers Costs:	4.50%	4.50%	4.250%	4.250%	n/a

No Cost Rate Drop Available! -- Call for Details
Above assumes 75% LTV, no cash out refinance with 740 credit score, 15 day rate lock.
Rates as of 4:30 pm PST 8/10/2011 - subject to market changes and qualifying.
Longer lock periods at higher costs or rate will be required if locked at time of application.

If you need a High Balance above $625,500, APPLY NOW! New loan limit effective 9/1 = $625,500

ESQUISITE GREYSTONE HOME at Niles Glen, Fremont!

2011-07-22T13:26:00.000-07:00

NOT YET LISTED Opportunity -- Walnut Creek!

2011-07-20T22:25:00.000-07:00

If you or someone you know is in the market for a property in
Walnut Creek here is an inside opportunity!

Walnut Creek near John Muir Medical Center close to everything!$89,900 Short Sale -- Not Yet Listed!

Prime location on Ygnacio Valley across from John Muir
1 bedroom condo -- Investor, first time buyer, or retiree--this is for you!
Any reasonable offer will be submitted...Be the first!

Great Rental Property Investment--
buy with cash and get an annual gross return on investment in excess of 13%!

Contact me for complete details -- before this one is offered to the general public!

East and South Bay Counties - Average Sales Prices

2011-06-15T18:40:00.000-07:00

source: Apple Appraisal

TWO CRITICAL DATES - if you are considering home financing

2011-05-14T11:24:00.000-07:00

These dates are especially critical if you need a loan amount greater than $625,500, will not qualify if rates go up, or you are in an ARM and cannot afford to payoff your loan if rates are up when the fixed period ends. Rates have dipped over the last couple weeks, so now is the time to get your application in process!

June 30, 2011

Federal Reserve is scheduled to end its $600 Billion in Treasury Purchases. Basic supply and demand dictates that rates will go up when the Feds stop purchasing Treasuries.
Read more here: Treasuries "Most Overvalued" Bonds, Bill Gross Says: Beware End of QE2

September 30, 2011

Currently, high balance conforming loans with great rates are available up to $729,750 in the Bay Area. Unless there is an extension, the high balance conforming loan limit will drop to $625,500 after Sept 30th. "Jumbo" rates will apply for loan amounts exceeding that amount and those rates are almost always higher.
Read more here: Maximum Loan Limits for Loans Originated between 10/1/2010 and 9/30/2011

Remember, I have access to dozens of wholesale funding sources and home listings anywhere in California.

ARF Event Animals on Broadway

2011-05-09T23:22:00.000-07:00

Check out this family--including pets--event on Sunday, May 15

Animals on Broadway

Sunday, May 15, 2011
10:30 a.m. - 4 p.m.
Broadway Plaza - Walnut Creek

East and South Bay Counties - Average Sales Prices

2011-04-29T13:31:00.000-07:00

source: Apple Appraisal

Home prices are still on the rise. If you are considering buying or investing in real estate NOW is truly the TIME TO BUY. The combination of reasonable prices + low rates makes it the most affordable time in decades. Remember, as rates increase, your buying power/purchase price decreases for the same monthly payment.

How long until I can qualify for home loan after a short sale or foreclosure?

2011-04-22T17:55:00.000-07:00

Below are the general guidelines that FHA (Government insured loans), and Fannie Mae and Freddie Mac (Conventional/Conforming loans) have established in regards to a loan after a short sale or foreclosure. Keep in mind, lenders have the authority to lend to whomever they want, but will generally follow these guidelines. More often than not, lenders add further “overlay” restrictions of their own to these guidelines to reduce their risk.

FHA Loans

Short Sale

• Theoretically, a borrower can purchase right away if there was no mortgage default on the short sold property. However, most short sale lenders will not consider a short sale unless the buyer demonstrates a hardship and is behind on payments. They are not eligible if they pursued a short sale agreement on his or her principal residence simply to take advantage of declining market conditions and purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.
• 3 year wait if in default at the closing

• Reduced wait if the borrower has re-established good credit and can show extenuating circumstances

Foreclosure or deed in lieu of foreclosure

• 3 year wait before being able to get a loan

• Reduced wait if the borrower can show extenuating circumstances and re-establishes good credit

Fannie Mae Loans

Short Sale or deed in lieu of foreclosure

• 2 year wait if the borrower puts 20 % down

• 4 year wait if the borrower puts between 10% to 20% down

• 7 year wait if the borrower puts less than 10% down

• 2 year wait if the borrower can show extenuating circumstances and puts more than 10% down

Foreclosure

• 7 year wait from the completed foreclosure sale date

• 3 year wait if the borrower can show extenuating circumstances. Additional underwriting requirements apply for 4 years after a 3 year waiting period.

• 7 year wait for a 2nd home, cash out re-financing, or an investment property

Freddie Mac Loans

Short Sale or deed in lieu of foreclosure

• 4 year wait before being able to get a loan

• 2 year wait if the borrower can show extenuating circumstances

Foreclosure

• 5 year wait from the completed foreclosure sale date

• 3 year wait if the borrower can show extenuating circumstances.

Regardless of waiting periods, borrowers must have re-established credit after the event, and credit scores must be within guidelines.

What are extenuating circumstances?

These are circumstances beyond the borrower’s control- such as death of primary wage earner, long term un-insured illness, etc.

Sources: Fannie Mae and Freddie Mac selling guides, and FHA handbook.

Basically, a short sale allows a borrower to qualify for home loan sooner than a foreclosure.
As far as income tax consequences of a short sale, deed in lieu of foreclosure, or short sale, borrowers should consult with their tax professional; the "foregiven" debt may be taxable depending on individual circumstances.

How does a Foreclosure, deed in lieu of foreclosure, or Short Sale affect Credit Scores?

According to Fair Issac (My FICO)--a company that provides analytic, decision making, and credit scoring services for financial service companies--a credit score will go down by 40 to 110 points after being 30 days late. The scoring drop will increase to 70 to 135 points after 90 days late on a mortgage payment. The average scoring drop in a short sale, foreclosure or deed in lieu is 85 to 160 points

FHA MIP premiums increase April 18, 2011

2011-04-08T16:09:00.000-07:00

FHA Annual Mortgage Insurance Premiums--paid monthly--increase .25% on April 18. That is increase of approximately $21 a month per $100,000 in loan amount. Note that MIP is required on all FHA loans regardless of down payment or loan-to-value.

Although FHA financing is more costly then Conventional financing (AKA Conforming, Fannie Mae, Freddie Mac), FHA financing allows some qualifing situations that Conventional loans will not - FHA appproval guidelines allow:

3.5% down payment primary residence purchase loans -- all gift from immediate relative OK
A non-occupant co-borrowers income may be used to qualify (i.e., parents)
A borrower may refinanance to consolidate a first and second and that second is not purchase money second, but is a HELOC "seasoned" for 12 months with no more than $1000 accumulated draws in the past 12 months
Cash-out refinance loans up to 85% of home value
A Borrower's prospective new job income may be used in qualifying if the new job start date is within 60 days of closing and the borrower has a fully executed employment contract
One borrower has no credit score but other borrower (including non-occupant co-borrower) has a credit score(s)
Allows higher debt ratios than conventional (with compensating factors)
Borrower(s) is currently in a Chapter 13 Bankruptcy -- OK.
Is avaiable as High Balance FHA loan amounts up to $729,750 here in the Bay Area
15 Year Fixed, 30 Year Fixed, and Fully Amortized ARM's are available with FHA

Visit my Finance Page if you would like to recieve a quote for a FHA loan.

Great Economic News - Unemployment Falls to 2 Year Low!

2011-04-01T11:48:00.000-07:00

The unemployment rate dropped to 8.8%--the lowest since March of 2009 -- the drop was much more than analysits expected. Since the beginning of the year, we have seen a stair step trend of lowering unemployment. That is great news for the economy. Remember, positive economic news typically translates to higher mortgage rates, so if you have not taken advantage of the low current rates, now may be your last opportunity--in this lifetime.

If you are considering a home purchase, the low rates also maximize your buying power. As rates increase, the same relative monthly payment will mean less loan amount = lower purchasing power. Also, as the economy continues to add jobs, demand for homes will increase which will drive up home prices.

Visit my Finance Page for FREE Refinance Quotes and Home Buying Power Estimates:

See Reuters for Story

East and South Bay Counties - Average Sales Prices

2011-03-24T15:20:00.000-07:00

source: Apple Appraisal

We are heading into the Spring-Summer buying season with more buyers entering the market - creating more demand for homes. Contrary to the lagging national reports, prices in most Bay Area Counties are now on the rise. Check my blog monthly for updates to these stats.

2011-03-22T09:52:00.000-07:00

Please visit my Finance page for Home Loan Information