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4th Quarter Home Loan Information

01/15/2024

In our last Quarterly Newsletter, I started with "Where will interest rates go from here?"

Since then, we’ve seen the Federal Reserve Board of Governors state, per their Dot Plot Map, they expect to cut the Federal Funds Rate three times in 2024. The Fed Funds Rate is a leading indicator of where the 30-year Fixed Mortgage Rates might go, along with the 10 year Note Rate. The 10 year Note Rate has come down from 5% to roughly 4% since Mid-October of 2023. Therefore, you can see rates appear to be headed lower. As a result of Feds notice of potential rate cuts and the recent 10 year Note Rate cuts, the 30-year fixed mortgage rate has come down .5% to .75% since Mid-October of 2023. Only time will tell how rates react to future economic data, but it appears rates may have peaked in this current economic cycle and we may see lower rates in 2024.

Today's lending market is primarily a Purchase Money Buyer’s market vs. a Current Owner Refinance market. It is important to consider the current rate environment when buying a home today. A good plan in buying a home today might be that if you find the right home at the right price and can afford the payment with the current rates, consider buying it. Then, if rates come down in the future so that the interest savings from the refinance covers the cost to refinance within a couple of years, then refinance. This strategy allows you to secure the home you would like today at an affordable rate and payment while having a plan for refinancing tomorrow if rates come down in the future. I am hoping this simple strategy helps you with future lending decisions.

As of today, there are 460 homes listed in Shasta County. Realtors like to see an average of 1,100 homes on the market in Shasta County to allow them to somewhat balance buyers' and sellers' real estate needs. Because there are still relatively few homes on the market, buyers need to be pre-approved and ready to buy when they find the right home.

The following notes will give you an idea of the some of the things we helped our clients out with this past quarter. We Helped:

  • A Veteran and her mom to buy a property that provides enough space for both of them to enjoy.
  • A married couple using the FHA loan to purchase their 1st home.
  • A single borrower to buy a new mobile home in a mobile home park.

As a reminder we make all mortgage loans including Conventional, USDA, FHA, VA and Reverse Mortgages. We also make loan on Manufactured Homes of any age, in a park or on your own land, on or off a foundation and single or doublewide.

Special thanks to past clients and professionals for their business and referrals this past Quarter including Carolyn, Sherry, Rhonda and Meg.


3rd Quarter 2023 Home Loan Information

10/17/2023

Where will interest rates go from here?

On the one hand we are hearing from economic experts that softening economic and inflation trends have worrisomely reheated and we should expect interest rates to possibly go up. On the other hand, we are hearing rate experts say they are hopeful the economic and inflation data will soften in the fourth quarter. There are just too many headwinds to support economic activity that’s “too hot” and interest rates should begin going down later in the year and leading into more rate cuts in 2024.

Both sides make convincing arguments. So, when is the right time to borrow money?

  1. For those considering refinancing-If a refinance saves you money in interest and payments consider it. As an example, you have $25,000 in credit cards at a high average rate and higher monthly payments you may want to look into a small 2nd Mortgage with your bank or credit union allowing you to save on interest and payments. You may call or write me with these scenarios and I can offer feedback. You’ll always want to keep that low-rate 1st mortgage that you got a couple of years ago if you can. Everyone’s situation is different. I’ll be happy to act as a sounding board to give you some things to consider and to help where I can.
  2. For those looking to purchase- In the near future as I’ve noted in the past, my thought is if you find the right home at the right price and can afford the payment with current rates, consider buying it. Then, if rates come down in the future refinancing is a good option if it saves you money as described above. This strategy allows you to secure the home you would like today at an affordable rate and payment while having a plan for refinancing at a later time if rates come down. I’m hoping this simple strategy helps you with future lending decisions.

As of today, there are about 634 homes listed in Shasta County. Realtors like to see an average of 1,100 homes on the market in Shasta County to allow them to somewhat balance buyers' and sellers’ real estate needs. Because there are still relatively few homes on the market, buyers need to be pre-approved and ready to buy when they find the right home.

The following notes will give you an idea of the some of the things we helped our clients out with this past quarter. We Helped:

  • Several clients with purchase money loan questions.
  • A married couple to secure an FHA loan used to purchase their 1st home.
  • A single borrower to buy a new mobile home in a mobile home park.
  • Provide Approval Letters to clients so they are set to make offers on homes they’d like to buy.

As a reminder we make all mortgage loans including Conventional, USDA, FHA, VA and Reverse Mortgages. We also make loans on Manufactured Homes of any age, in a park or on your own land, on or off a foundation and single or doublewide.

Special thanks to past clients and professionals for their business and referrals this past Quarter including Sherry, Rhonda, Scott, Kelli, and Carolyn.


2nd Quarter 2023 Home Loan Information

07/18/2023

I expect mortgage rates to stay relatively close to where they are at today by year's end. They may even go down a little toward year’s end since inflation appears to be under control and actually declining from the 3%, we are at today. Remember that at this time last year, inflation was at about 9% which is why interest rates went up so much. The high rates orchestrated by the Federal Reserve were meant to slow inflation & bring it under control, which they have done at this point. The increase in rates over this past year and limited Home Owner’s Insurance availability are making home purchases more expensive however, purchase demand with limited housing availability is keeping home values steady at this time.

We are in much more of a purchase money market right now in the mortgage lending industry. The average homeowners' mortgage rate is 3.5% as a result of all the home owners that refinanced in 2020 and 2021 so refinances are less common today than they have been in the past. People always need money though and people will eventually refinance more to take care of consolidating higher rate debt or Home Improvements and the like.

For those looking to purchase in the near future, my thought is: if you find the right home at the right price and can afford the payment with current rates, consider buying it. Then, if rates come down in the future so that the interest savings from the refinance covers the cost to refinance within a couple of years, then refinance. This strategy allows you to secure the home you would like today at an affordable rate and payment while having a plan for refinancing tomorrow if rates come down in the future. I’m hoping this simple strategy helps you with future lending decisions.

As of today, there are 634 homes listed in Shasta County. Realtors like to see an average of 1,100 homes on the market in Shasta County to allow them to somewhat balance buyers' and sellers’ real estate needs. Because there are still relatively few homes on the market, buyers need to be pre-approved and ready to buy when they find the right home.

The following notes will give you an idea of the loans that we made this past quarter. We Helped:

  • A couple to purchase a new home relocating from the Bay Area.
  • A couple buy their Grandparent's home.
  • Counseled several clients with lending, credit, and income questions.
  • Provide Approval Letters to clients so they are set to make offers on homes they’d like to buy.

As a reminder we make all mortgage loans including Conventional, USDA, FHA, VA and Reverse Mortgages. We also make loans on Manufactured Homes of any age, in a park or on your own land, on or off a foundation and single or doublewide.

Special thanks to past clients and professionals for their business and referrals this past Quarter including Sherry, Rhonda, Lisa, Kelly, and Carolyn.

We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends, and families.


1st Quarter 2023 Home Loan Information

04/07/2023

At the beginning of last year, the Federal Reserve predicted they’d end the year at 4.5% Federal Funds Rate and they did. They are projecting a Fed Funds Rate at 5.1% at the end of this year and we’ll likely be very close to that number where the U.S. Fed Funds Rate is at 5% today. This isn’t much of an increase in the Fed Funds Rate for 2023 and, since the Fed Funds Rate and mortgage rates tend to move together, I expect mortgage rates to stay relatively close to where they are at today by years end. With this said, optimistically if inflation continues to decline from its current 6% to closer to 2% by years end, we may see some small rate easing by the end of the year.

What does all this mean for our clients who are interested in buying or refinancing homes? For prospective buyers, you may see home prices stabilize or decrease in price if the economy does slow down appreciably. Refinances are typically taking the form of Debt Consolidation and Delayed Refinancing where and investor buys a rental home for cash to take it off the market then, once owned, they refinance the rental to get their money back out so they can put it to work again. Other reasons to refinance would be for necessities  ike divorce, settling a trust, etc. We look forward to the opportunity to help those that would benefit from a refinance for the reasons noted above or for any other reason that we can help you out with.
For those looking to purchase in the near future, my thought is: if you find the right home at the right price and can afford the payment with current rates, consider buying it. Then, if rates come down in the future so that the interest savings from the refinance covers the cost to refinance within a couple of years, then refinance. This strategy allows you to secure the home you would like today at an affordable rate and payment while having a plan for refinancing tomorrow if rates come down in the future. I’m hoping this simple strategy helps you with future lending decisions.

As of today, there are 478 homes listed in Shasta County. Realtors like to see an average of 1,100 homes on the market in Shasta County to allow them to somewhat balance buyers' and sellers’ real estate needs. Because there are still relatively few homes on the market, buyers need to be pre-approved and ready to buy when they find the right home.

The following notes will give you an idea of the loans that we made this past quarter. We Helped:

  • A client to refinance his mobile home for some necessary cash out.
  • A client to refinance her investment property for some cash out to replace the reserves used to buy the home.
  • Counseled several clients with lending, credit, and income questions.
  • Provide Approval Letters to clients so they are set to make offers on homes they are interested in.

Special thanks to past clients and professionals for their business and referrals this past Quarter including Harry, Kelly, Rebecca, Jesse, Terri, Carolyn, Mark, and Robert.

We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends, and families.


4th Quarter 2022 Home Loan Information

01/27/2023

The Fed Funds rate started at .25% at the beginning of 2022 and ended at 4.50% by the end of 2022. The Federal Reserve has stated that it expects to increase the Fed Funds Rate to 5.10% by the end of 2023. With the economy slowing, the good news is that it appears we are nearing the end of rate increases and we may actually see some rate easing or even rate decreasing by the end of 2023.

What does all this mean for our clients who are interested in buying or refinancing homes? For prospective buyers, it may help to see some leveling off in mortgage interest rates. In addition, they may see home prices stabilize or decrease if the economy does slow down appreciably. Regarding refinances, I’d say the majority of homeowners that could refinance, did refinance in 2020 and 2021 when the rates were comparably low. With current rates twice as high as they were a little over a year ago, fewer people are refinancing today vs. the number of refinances in 2020 and 2021. Refinances today are taking the form of Debt Consolidation and Delayed Refinancing, where an investor buys a home for cash to capture it, then refinances to get their money back out to put it to work again. Borrowers may also refinance out of necessity when dealing with legal issues like divorces, trust settlements, etc. We look forward to the opportunity to help those that would benefit from a refinance for one reason or another.

For those looking to purchase in the near future, my thought is: if you find the right home at the right price and can afford the payment given where the rates are today then consider buying it. Then, if rates come down in the future so that the interest savings from the refinance covers the cost to refinance within a couple of years, then refinance. This strategy allows you to secure the home you like at an affordable rate and payment today while having a plan for refinancing tomorrow if rates come down in the future. I’m hoping this simple strategy helps you with future lending decisions.

As of today, there are 560 homes listed in Shasta County. Realtors like to see an average of 1,100 homes on the market in Shasta County to allow them to somewhat balance buyers' and sellers’ real estate needs. Because there are still relatively few homes on the market, buyers need to be pre-approved and ready to buy when they find the right home.

The following notes will give you an idea of the loans that we made this past quarter. We Helped:

  • A client to buy their 1st home with a low-down payment FHA loan.
  • A client to buy a home in the foothills where it’s a little cooler.
  • Counseled several clients with lending, credit, and income questions.
  • Provide Approval Letters to clients so they are set to make offers on homes they are interested in.

Special thanks to past clients and professionals for their business and referrals this past month including Gary, Carolyn, Ryan, Sherry, Harry, John, and Mike.   We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends, and families.

 


3rd Quarter 2022 Home Loan Information

10/14/2022

The Federal Reserve increased the Fed Funds Rate by .75% in September and is expected to increase by another .75% in November and possibly .50% in December. This would bring the Fed Funds rate to about 4.25% by year-end. The Fed's target rate is 4.6% by the end of next year. The Fed Funds Rate was near -0- on January 31st of this year so, we’ve experienced quite a jump in 2022. However, the Fed does not expect to increase the rate nearly as much next year. The Fed's plan is designed to hold inflation in check. Federal Chairman Powell says that 'the message remains the same, the Fed intends to drive inflation back to 2% and they will remain at it until the job is done.' 

What does all this mean to our clients who are interested in buying or refinancing their homes? Some buyers are starting to see price reductions and sales concessions where, a year ago, they were hard to come by. So if you find the right home at the right price and can afford it, buy it. Then, if rates come down in the future and the lower rate pays for the cost of refinancing within two years, you can refinance. This strategy allows you to lock in a rate today while having a plan for refinancing tomorrow if the rates come back down. I hope this simple strategy for purchases and refinances helps you with future lending decisions.

As of last week, there were 700 active home listings in Shasta County. Realtors in Shasta County like to see an average of 1,100 homes on the market to allow them to somewhat balance the real estate needs of buyers and sellers. Because there are still relatively few homes on the market, buyers need to be pre-approved and ready to buy when they find the right home.

The following notes will give you an idea of the loans that we made this past quarter.  We Helped:

  • A client to buy another rental.
  • A client to buy her 1st home with the benefit of a VA loan offering a lower rate and fees.
  • A client to buy her partner's share of a home out so that the title is in her name alone.
  • A couple of clients buy their first home---exciting.
  • A client to buy a home in the foothills where it’s a little cooler than where they live now.

Special thanks to past clients and professionals for their business and referrals this past month including: Jay, Robbie, Dan and Holly, and Mike. We appreciate the confidence that you’ve placed in us, allowing us to take care of you and your clients, friends, and families.


2nd Quarter 2022 Home Loan Information

08/02/2022

The Federal Reserve is expected to make more increases to the Fed Funds Rate this year. This would take us to about 2.25% by year's end where we are at about 1.25% today and where we were close to 0% at the beginning of the year. These increases are meant to slow down inflation by making it costlier to buy cars, homes, business deals, and the like. The Fed Funds Rate does not translate into mortgage rates percentage point to percentage point however, if the Fed Funds Rates go up, we can expect that we might see some high mortgage rates in the future. All in all, mortgage rates are still pretty good historically.

 What does all this mean to our clients interested in buying or refinancing residential real estate? It means to me that if you find the right home and can afford it, go ahead and buy it today as rates are still pretty low historically. Then, if rates go back down in the future so that the interest savings pays for the cost of refinancing the loan within two years, then refinance it. This strategy allows you to lock in a reasonably low rate today while having a plan for refinancing if the rates go back down in the future. This same interest savings strategy applies to refinances too. I’m hoping this simple strategy on purchases and refinances helps you with future lending decisions.

As of last week, there were 670 active home listings in Shasta County. This is more than the 474 listed at the end of the previous quarter. We are making more Purchase Money Loans vs. Refinance Loans today compared to a year ago when the opposite was true. Realtors like to see an average of 1,100 homes on the market in Shasta County to allow them to somewhat balance buyers' and sellers’ real estate needs. Because there are still relatively few homes on the market, buyers need to be pre-approved and ready to buy when they find the right home. Buyers are experiencing fewer multiple offers today vs. a year ago on homes they are making purchase offers on but, it is still a competitive purchase market with prices starting to level off and maybe even come down a bit in Shasta County at this time.

The following notes will give you an idea of the loans that we made this past quarter. We Helped:

  • A client to buy her grandparents' home
  • A Veteran and his wife to buy a beautiful, newer home
  • A client improve his credit score saving ½% to his mortgage rate saving him over $1500 a year in interest.
  • A couple buy a home from their parents after doing a little credit repair for a better interest rate.

Special thanks to past clients and professionals for their business and referrals this past month including Rob, John, Sherry, and Tennille.

We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, family, and friends.


1st Quarter 2022 Home Loan Information

04/20/2022

"People always need money, no matter what the interest rates are." This quote, made by my past employer, Pat McGowan, a 30-year north state lending veteran in 1992, still stands true today. Mortgage rates have gone up and down from all-time highs to all-time lows over the last 50 years. To add some perspective: the average 30-year fixed mortgage rate in 1974 was about 8%. A few years later, in 1981, mortgage rates skyrocketed to an average of 18%. Rates continued to fluctuate in recent years, dropping as low as 2.75% in 2020 before bouncing back to 5.125% this year.

Rates will likely continue rising as the Federal Reserve talks about more rate hikes this year. What does all of this mean? To me, it seems that if you find the right home and can afford it: go ahead and buy it today at rates that are still relatively low. And if rates drop back down in the future, you can refinance the home so that the interest savings pay for the cost of refinancing the loan. 

This strategy allows you to lock in a reasonably low rate today with a plan to refinance if the rates go back down in the future. This same interest rate savings strategy applies to refinances as well. I hope this simple strategy helps you with your future purchase & refinance lending decisions.

As of writing this, there are 463 active home listings in Shasta County—a bit more than the 385 listed at the end of the previous quarter. For reference: Realtors like to see an average of 1,100 homes on the market in Shasta County to allow them to balance buyer and seller real estate needs. Because there are still relatively few homes on the market, buyers need to be pre-approved and ready to buy when they find the right home.

It is still a competitive purchase market, where multiple offers on new home purchases are the norm today.

The following notes will give you an idea of the loans that we made this past quarter. We Helped:

  • A couple of clients to refinance their new home into a long-term VA loan.
  • A couple of clients to refinance taking their ex-spouses off title following their legal settlement guidelines.
  • Clients to refinance so that they could raise the money needed to buy investment properties and to make Home Improvements.
  • Several clients to buy primary and Investment homes.

Special thanks to past clients and professionals for their business and referrals this past month including John, Shane, Dino, Jim, Robbie, Wayne, and Jaime.

We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, family, and friends.

 


4th Quarter 2021 Home Loan Information

02/03/2022

The Federal Reserve is prepared to raise their benchmark short term rate, now pegged near zero, three times this year to help slow down inflation if necessary. This will obviously slow down refinances, but lending will continue. People still need home loans to purchase, make home improvements, consolidate for lower payments, and less interest paid. Higher rates may slow the numbers of real estate loans down, but we are still making some really nice purchase and beneficial refinance loans. Please keep in mind that interest rates are still predominantly between 3% to 4%. I can remember the 5% to 10% market not too long ago, therefore rates are still great historically.

Appraisal Waivers are helping our clients to save an average of $500 to $700 in appraisal fees and about 1 to 3 weeks in the time needed to close their loans. We work hard to offer our clients appraisal waivers as we have a good understanding as to what’s required to obtain them.

Last week there where 385 homes on the Multiple Listing Service in Shasta County. Realtors like to see and average of 1,100 homes on the market in Shasta County to allow them to somewhat balance buyers and seller’s real estate needs. Because there are still relatively few homes on the market, buyers need to be pre-approved and ready to buy when they find the right home. It is still a competitive purchase market, where multiple offers on new home purchases are the norm today.

The following notes will give you an idea of the loans that we made this past quarter. We Helped:

  • Many clients to refinance saving them thousands of dollars in interest per year.
  • A couple to refinance to take cash out for down payment money to buy an investment property.
  • Veterans take advantage of the VA Streamline Refinance Loan known as the IRRRL to lower their rates without the need for an appraisal, inspections or proof of income.
  • A spouse refinance, allowing her to pay an ex-spouse off to gain title to the home that they shared at one time.
  • Several clients with Purchase Money loans to buy new homes.

Special thanks to past clients and professionals for their business and referrals this past month including Kelly, Robbie, Jay, Allen, Breanna, Rob, and Mike.

We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, family, and friends.

 


3rd Quarter 2021 Home Loan Information

10/22/2021

This past quarter 79% of our loans were refinances and 21% were purchases. 62% of the refinances were used to drop interest rates, while the remaining 17% were for home improvements and other purposes. Most of our refinances are paying for themselves in approximately 2 years, with the interest savings covering the cost of the loan.

Appraisal Waivers are helping our clients to save an average of $500 to $700 in appraisal fees and about 1 to 3 weeks in the time needed to close their loans. We work hard to offer our clients appraisal waivers if available. Appraisal Waivers are offered through the initial automated underwriting system. The automated system gives less weight to our client’s credit scores and income and more weight to the subject property, when it was refinanced last, the equity in the home, the neighborhood, and the comparables around the property. We are getting the appraisal waivers on nearly 50% of our loans at this time.

Last week there where 532 homes on the Multiple Listing Service in Shasta County. Three months ago, there were 400 homes on the market. You can see that there are more homes on the market today than a few months back, though there are still less than we’d like to see. Realtors like to see an average of 1,100 homes on the market in Shasta County to allow them to somewhat balance buyers and seller’s real estate needs. Because there are still relatively few homes on the market, buyers need to be pre-approved and ready to buy when they find the right home. It is still a competitive purchase market, where multiple offers on new home purchases are the norm today.

The following notes will give you an idea of the loans that we made this past quarter. We Helped:

  • Many clients to refinance saving them thousands of dollars in interest per year.
  • A couple to refinance to take cash out to add a shop to their property.
  • A client to improve their credit score while putting their loan together offering them lower payments and interest over time.
  • Veterans take advantage of the VA Streamline Refinance Loan known as the IRRRL to lower their rates without the need for an appraisal, inspections or proof of income.
  • A young family to make Home Improvements with cash out of their loan while lowering their current loan rate and saving them on interest over time.
  • Several clients with Purchase Money Veteran and Conventional loans to buy their dream homes.

Special thanks to past clients and professionals for their business and referrals this past month including Jay, Casey, Steve, Shae, Carolyn, Ed, Bill, and Tom.

We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, family, and friends.


2nd Quarter 2021 Home Loan Information

08/04/2021

40% of our loans were purchases and 60% were refinances this past Quarter.   67% of the refinances were to drop interest rates, while the remaining 33% were to both drop rates and cash out for home improvements and other purposes.

Interest rates have again come down to all-time lows.   My feeling is that with the scare of a resurgence in the pandemic those that affect rates are hedging to keep them down to keep our economy rolling.

Of the loans that we are currently refinancing nearly half of them qualify for appraisal waivers.    An appraisal waiver saves our clients time and money.   There are quite a few details that go into determining if you qualify or not.  In general if you’re refinancing a conventional loan that was put in place in the last 6 or 7 years to lower the rate,  you have a good chance of qualifying for the waiver.

Trulia shows there are 420 homes for sale in Shasta County today.   Realtors like to see 1,100 homes on the market to allow them to somewhat balance buyers and seller’s real estate needs.   This means with fewer homes on the market, buyers need to be pre-approved and ready to buy when they find the right home.

This past quarter a majority of our loans were Conventional and FHA type loans.  We also closed a few VA and USDA loans.  We also closed 2 Reverse mortgages this past quarter with rates similar to what you’d see in a conventional 30 year mortgage.

The following notes will give you an idea of the loans that we made this past quarter. We Helped:

  • A son buy his father’s home.
  • We helped several couples and individuals buy their first homes.  Always rewarding.
  • We saved our reverse clients thousands of dollars in interest by refinancing them in to lower rate reverse HECMS (Home Equity Conversion Mortgage).
  • Veterans with VA Streamline refinances (IRRRL) where no appraisal or income proof is needed to refinance.
  • We refinanced a USDA loan lowering our client’s interest and saving them money on a monthly and annual interest rate basis.

Special thanks to past clients and professionals for their business and referrals this past Quarter including Carl, Perry, Tom, Dawn, Scott, Sherry, Misty, Shae, Wayne and Casey.

We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, family, and friends.


1st Quarter 2021 Home Loan Information

04/29/2021

This past quarter was a return to normalcy with more purchases in the mix versus the pure refinance quarter we had in the 4th quarter of last year. Rates are still within quarter percent of all-time lows. Within the refinance world we are still obtaining many appraisal waivers for our clients saving them time and money. An appraisal waiver can save our clients the appraisal cost, which on average is between $500-$700, and reduces the closing time between 1-3 weeks.

Today there are fewer than 400 homes on the Multiple Listing Service (MLS) in Shasta County. Realtors like to see 1,100 homes on the market to allow them to somewhat balance buyers and seller’s real estate needs. This means with fewer homes on the market, buyers need to be pre-approved and ready to buy when they find the right home. It is a competitive purchase market, where multiple offers on new home purchases are the norm today.

This past Quarter a majority of our loans were Conventional and VA type loans. We closed a few FHA and USDA loans as well. We also work with Reverse Mortgage Loans too. 85% of the loans were refinances and the remaining 15% were purchases. Most of our refinances are paying for themselves in about 1 years’ time through the interest savings alone. A few of refinances were for home improvements.

The following notes will give you an idea of the loans that we made this past quarter. We Helped:

  • A fire victim to refinance his home that he lost in the Carr Fire.
  • A couple refinance their home to buy a business.
  • We saved several clients thousands of dollars in interest savings per year by refinancing their current mortgages at lower interest rates and in some cases to shorter loan terms.
  • Veterans with VA Streamline refinances (IRRRL) where no appraisal or proof of income is needed to refinance.
  • A couple used the USDA loan for a low rate to buy their grandmother's home keeping her past property tax base at a lower base rate.

Special thanks to past clients and professionals for their business and referrals this past month including Carl, Jay, Greg, Tom, Jaime, Steve, Lisa, and Toni.


4th Quarter 2020 Home Loan Information

01/31/2021

This past quarter was a “Pure Refinance” quarter with all-time low rates and fewer houses on the market.   What’s interesting and relatively new in real estate lending today is the higher frequency of Appraisal Waivers. This is where an automated underwriting system reviews a client’s information and determines no appraisal is needed to close their loan.   This can save our clients on average of $500 to $700 in closing costs and about one to three weeks’ time to close the loan.

Today there are now fewer than 400 homes on the Multiple Listing Service in Shasta County.   Three months ago, there were 550 homes on the market and three months before that there were roughly 750 homes on the market.   Realtors like to see 1,100 homes on the market to allow them to somewhat balance buyers and seller’s real estate needs.   With fewer homes on the market, buyers need to be pre-approved and ready to buy when they find the right home.  It is a competitive purchase market, where multiple offers on new home purchases are the norm today. 

This past quarter most of our loans were Conventional and VA type loans.  96% of the loans were refinances and only 4% were purchases.  This is about the “Purest Refinance” quarters I have seen in a long time. Most of our refinances are paying for themselves in about 1 years’ time through the interest savings alone. Of the refinances, not one of them was strictly designated for home improvements-which was rather interesting. The majority of refinances were to lower our client’s interest rates saving them mortgage interest paid from year-to-year.

The following notes will give you an idea of the loans that we made this past quarter. We Helped:

  • Many clients to refinance saving them thousands of dollars in interest per year.  In one case we saved a client over $12,000 a year in mortgage interest.
  • A couple to buy a larger home for their growing family in a quiet neighborhood.
  • A client to take some money out of their home for other investment purposes.

Special thanks to past clients and professionals for their business and referrals this past month including Sherry, Mike, Jaime, Steve, Downtown Brown, Jaime and Toni.
 


3rd Quarter Home Loan Information

11/04/2020

"The Federal Reserve left interest rates near zero and signaled it would hold them there through at least 2023." The Federal Reserve is our Government Lending Institution that then lends to the largest banks across the U.S. These large banks then lend to other banks and institutions that set mortgage interest rates which are historically low as a result of the very low Federal Funds Rate.

There are roughly 550 homes on the Multiple Listing Service in Shasta County today. 3 months ago, there were roughly 750. The inventory has been shrinking. Realtors like to see 1,100 homes on the market in an attempt to somewhat balance buyers and seller’s real estate needs. This means with fewer homes on the market buyers need to be pre-approved and ready to buy when they find the right home. It is a competitive purchase market where multiple offers on new home purchases are the norm today.

This past quarter a majority of our loans were Conventional and VA type loans. 35% were purchases while 65% were refinances. Of the refinances a few of them were for Home Improvements. The majority were to lower our client’s interest rates saving them mortgage interest paid from year to year.

The following notes will give you an idea of the loans that we made this past quarter. We Helped:

  • Many clients to refinance saving them thousands of dollars in interest per year.
  • Several clients with loans to secure homes that were larger, newer or a step up in one fashion or another.
  • A client to improve their credit scores, helping them to buy their first home.
  • A client to buy a relative’s previous home.
  • A couple with a consolidation loan, saving them over $1,300 per month in payments.
  • Two separate firemen to finish their separate loans in between fighting fires.
  • A client with a 2nd home purchase loan so they could be closer to family in the Redding area.

Special thanks to past clients and professionals for their business and referrals this past month including Terri, Jay, Steve, Downtown Brown and Brad. We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends and families.


2nd Quarter 2020 Home Loan Information

08/14/2020

Covid-19 has turned the real estate lending market in the North State into a refinance loan market, which in turn meant 95% of the loans that we made this past quarter were refinances. Our clients are taking full advantage of the current historic low interest rates.

The other part the refinance story is that we have fewer Purchase Money loans closing at this time. We have several purchase transactions going, but it’s a smaller percentage of what is happening in the real estate market in the North State at this time. One of the main drivers for fewer purchase loans is low home inventory for buyers to choose from. At one-point last week the MLS had fewer than 750 homes on the market in Shasta County. This is a very low number! Our professional realtors like to see an average of 1,100 homes on the market in an attempt to somewhat balance buyers and seller’s real estate needs.

This past quarter a majority of our loans were conventional and VA refinances. 25% of the loans were Home Improvement loans. We see folks refinancing for the lower rates and working on their homes too. Have you been to a home improvement store lately? If you have, you’ve likely noticed how busy they are. Long lines are the norm in these stores at this time. Last year at this time it wasn’t nearly this busy as it is today in these stores.

The following notes will give you an idea of the loans that we made this past quarter. We Helped:

  • Many clients to refinance, in turn, saving them thousands of dollars in interest per year.
  • A client refinance their log home saving them over $11,000 in interest per year.
  • A client convert their construction loan into a 30-year fixed rate home loan.
  • A couple buy a new home that was larger than their last home to fit their growing family.
  • A couple with a consolidation loan, in turn, saving them over $800 per month.
  • Helped two clients to improve their credit scores to obtain lower interest rates for future savings.
  • A client with 2nd Home Purchase Loan so they could be closer to family in the Redding area.

Special thanks to past clients and professionals for their business and referrals this past month including Kelli, Jay, Steve, Jim, Marc & Susannah, Carolyn, Jamie, Toni, and Tom. We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends and families.


1st Quarter 2020 Home Loan Information

04/13/2020

COVID-19 has had a profound effect on our business now and in the future. Accelerated Mortgage is still open and considered an essential business.  Our doors are locked in honor of the Shelter in Place order to drop in business, but we are still seeing clients on an appointment basis after asking appropriate health questions.   Hand sanitizer and disinfecting wipes are available in our front lobby and their use is encouraged in these difficult times to help do our part to help stall and eventually kill the COVID-19 virus.

With regards to lending, our refinance and purchase business was brisk in the first 2 months of the year, but slowed down these past few weeks as a result of the virus. The slowdown is due to some market liquidity uncertainty and some new lending processes where social distancing is put in place to keep the lending engines going. Rates were at an all-time low the 1st week of March and have since gone up a 1/8th of a percent for 30 year and 15 year conventional loans and about 1/2 of a percent for VA, FHA and USDA loans.  This is contrary to what we’d think when we hear that the Fed Funds rate is near zero.

The Federal Reserve Fed Funds rate is at .25% as of this morning where it was at 1.75% a month ago and 2.5% a year ago.   Again, I am hopeful when the COVID-19 Virus subsides and our economy begins to pick up speed we’ll see the rates in all loan classes try to test all-time lows again in the not too distant future.

Conventional loan limits are now at $510,400. Veteran loans followed suit with the same $510,400 loan limit.   FHA’s North State loan limit to is $331,760.   <USDA’s loan limit in the north state is $306,000.

The following notes will give you an idea of the loans that we made this past quarter. We Helped:

  • Several clients buy their first home in this past quarter. Very exciting!
  • A couple of clients to pay off separate land loans with Primary Home Loan Refinances dropping their monthly payments significantly.
  • We are able to waive the need for an appraisal for our clients in many cases.
  • A client work toward the completion of a family trust with a refinance.
  • Clients simply refinance their conventional loans or their VA loans saving them thousands of dollars a year in interest with their lower rate mortgages.

Special thanks to past clients and professionals for their business and referrals this past month including Carl, Joe, Pat, Steve, Jaime, Toni, Marissa, Clyde, Carolyn, and Dan. We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends and families.


50 Year Interest Rate Lows

11/05/2019

3rd Quarter 2019 Home Loan Information

This past quarter 13% of our loans were purchase money loans and 87% were refinance loans. Of the refinance loans 20% were used for home improvements, but a full 80% were used to lower our client’s current mortgage rate; saving them interest over time. Rates are now down to 50 year lows again, similar to what we saw in 2015/2016.

My rule of thumb on a refinance is that if you can lower the rate by 2% and or the refinance pays for itself in interest savings within 2 years it makes sense to refinance if you see yourself staying in the home for over four years.

Conventional loan limits are now at $484,350. Veteran loans followed suit with the same $484,350 loan limit. FHA’s North State loan limit to is $314,827. USDA’s loan limit in the north state is $272,000.

The following notes will give you an idea of the loans that we made this past quarter. We Helped:

  • Clients take cash out for home improvements.
  • A veteran and his wife after some credit improvement buy their first home. Very exciting for them and for us.
  • A client consolidate a higher fixed rate 1st mortgage and a variable rate 2nd mortgage into a single fixed low rate conventional loan.
  • A client refinanced waiving the need for an appraisal.
  • A client with a reverse mortgage to eliminate the need for monthly payments.
  • A client get some cash out to start a business.
  • A veteran consolidate a 1st and 2nd mortgage with a new low rate via a VA loan. This saved him over $4,700 in interest per year.

Special thanks to past clients and professionals for their business and referrals this past month including Rob, Tammy, Pat, Tom, Toni, Bob and Carl. We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends and families.


Mid 2019 Rates Close To 50-Year Lows

07/26/2019

2nd Quarter 2019 Home Loan Information

This past quarter, 63% of our loans were purchase money loans and 37% were refinance loans.  Of the Refinance loans ½ were used to consolidate bills to lower interest costs and payments while the other ½ were used to simply lower client’s mortgage rates saving them interest over time.   During the past two months rates have come down to within a quarter of a percent of 50-year lows.

My rule of thumb on a refinance is that the refinance should lower the rate by 2% and or the refinance should pay for itself in interest rate savings within two years. This rule of thumb is more applicable if you plan on keeping the home for five plus years.

Conventional loan limits are now at $484,350. Veteran loans followed suit with the same $484,350 loan limit.   FHA’s North State loan limit to is $314,827.   USDA’s loan limit in the north state is $272,000.

The following notes will give you an idea of the loans that we made this past quarter. We Helped:

  • A couple of different clients take cash out of their homes for Home Improvements. 
  • A veteran and his wife after some credit improvement buy their first home.   Very exciting for them and for us.
  • A family buy their 1st home using the USDA no money down loan.
  • A client to complete a settlement so that he and his past wife could go their separate ways.
  • A client to buy her first home with a Non-Occupant Co-Borrower. 

Special thanks to past clients and professionals for their business and referrals this past month including Jamie, Toni, Sonja, Sherry, Pat, Spencer and Brad.  We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends and families.


2018 Redding Real Estate Lending Recap

02/18/2019

4th Quarter 2018 Home Loan Information

As of this writing there are only 813 homes for sale in the Shasta County area including mobile homes in a park.   Last year at this time there were 756.   I find this to be interesting especially in light of the devastating fires we had later last year.   I would have thought the inventory would have been lower with fire victims gobbling up much of the remaining inventory.  However, this is not the case.  I think this is telling us that the inventory numbers are about as low as they will go.  For a healthy Shasta County market, a realtor friend of mine told me  “I like 1300...more selection for my buyers...great for the sellers though when market is thin......” 

This past quarter 61% of our loans were purchase money loans and 39% were refinance loans.  16% of the overall loans were used to pay off construction loans showing that people are building again; although not a highly active building loan market.  This is better than the very low building loan activity we had 5 years ago.

The new year brought us some new loan limitsConventional Loan limits are now at $484,350. Veteran Loans followed suit with the same $484,350 loan limit.  FHA  increased its loan limit to $314,827.  USDA loan limits are $272,000 for our area.  

The following notes will give you an idea of the loans that we made this past quarter.  We Helped:

  • A couple refinance which allowed them to pay off many bills saving them over $900 a month.
  • A couple to refinance their manufactured home that  other lenders had difficulty allowing them to consolidate and take some money out to buy a new vehicle.
  • A couple of clients take cash out of their homes for home improvements.
  • Helped a couple of clients to improve their credit scores to obtain lower rates when securing their home loans, therefore,  saving them money on interest expenses.
  • A client to obtain a loan to pay off their construction loan at a very low 30-year fixed interest rate.

Special thanks to past clients and professionals for their business and referrals this past month including Dena, Carlos and Jeannine, Debra, Teresa, Mark, Rod, Carolyn, Jamie, and Toni.  We appreciate the confidence that you’ve placed allowing us to take care of you and your clients, friends and families.


Fall 2018 Real Estate News In The North State

10/29/2018

Home Loan Information

Our prayers go out to those Victims and all or those affected by the Carr, Hirz and Delta fires which claimed over 1,100 homes and hundreds of other structures from July 23rd to just recently when all three fires were contained. We also extend our thanks to all of the First Responders. In the 28 years that I've lived in Redding I've seen some terrible fires but nothing like what we've all experienced in past 3 months.

From a lending perspective lending did slow down during these horrible fires, but fortunately we make loans up and down the state so we were still making loans over the last three months. There was a short time that we had difficulty with an FHA loan in a certain zip code here in Redding but aside from that we were able to close our client loans in and around Redding.

The biggest headwind in lending today is Federal Reserve. The Federal Reserve just increased the Fed Funds rate to 2.25% on September 26th and is stating that it intends to move this rate to 2.5% by the end of this year. It then plans to reach 3% by the end of 2019 and to 3.5% in 2020. The idea behind the rate hikes is to slow down inflation but it will likely slow up refinances and purchases too. With this said most of us have seen higher rates in the past and folks were buying and refinancing homes at that time and I think we expect the same in the future.

This past quarter 62% of our loans were purchases and 38% were refinances where the majority of these loans were Conventional Loans. It's interesting to note that 2 or 3 years ago I'd say the majority of our refinances were simply used to refinance our client's mortgages to lower interest rates, but now with the appreciation in housing more of these refinances are for cash out to make home improvements and to consolidate some bills so lending is changing in this respect. The use of money for Home Improvements is further confirmed by driving up to a Home Improvement store where the parking lots are nearly full today where they used to be almost empty 6 or 7 years ago.

We did make some VA, USDA and FHA loans too this past quarter. The VA is still one of the best loans out there as it does not have mortgage insurance at the higher loan to values where most loans do and it still has one of the lowest rates available in the market today.

The following notes will give you an idea of the loans that we made this past quarter. We Helped:

  • A family buy a home on a hill with beautiful views of the surrounding mountains with a very nice low rate purchase money loan.
  • A middle-aged Veteran buy his 1st home.
  • A Veteran refinance a Manufactured home allowing him to clear title on this home and another property that he owned at the same time in addition to consolidating bills lowering his payments and interest paid.
  • A couple buy a beautiful 30-acre piece of property with a small home and a huge barn.
  • A young couple buy a home with a USDA loan at zero down and a very nice low rate.

Special thanks to past clients and professionals for their business and referrals this past month including Terri, Dena, Suzanne, Jamie, Toni, Mark, Carolyn and Rod. We appreciate the confidence that you've placed in us in allowing us to take care of you and your clients, friends and families.


Summer 2018 Real Estate News In The North State

08/15/2018

Home Loan Information

This quarterly newsletter is a little longer in length than normal but as a result it may shed some helpful information for those that have been affected by the Carr Fire which has done a lot of damage in and around Redding. The Carr Fire started with a trailer rim sparking a grass fire on July 23rd and as of this writing approximately 180,000 acres have burned along with roughly 1,100 homes and 500 other structures. It's currently recorded as the 6th worst fire in California history.

Many of our clients have been affected by this fire with several losing their homes. My heart goes out to them and their friends and all of our community neighbors that may have lost their homes or who have been affected by this fire. As of this writing it is still only 51% contained and is still active west of Redding in the IGO and Lewiston Areas. I'd also like to say thank you to all 1st Responders who have done their best to save lives and property.

I've received several questions regarding the fire and its affects and I've listed a few of them below in hopes that this Q&A may help you if you've had similar thoughts and questions:

  1. How does my insurance work? This is probably the most important question there is at this time. Hopefully you have kept the insurance on your home if its paid off. Providing you did please call your insurance agent who will put you in touch with your Insurance Adjuster. The Adjuster is the person that can help you with your coverage questions for the Primary Home, Outbuildings and Contents. This a very important person. They also help with money for living expenses. Since this fire has been proclaimed to be a federal disaster my understanding is that you'll now receive 2 years of living expenses from your insurance company where this is one year normally. So, one of your first calls should be to your insurance agent who can put you in touch with your Insurance adjuster.
  2. Do I continue to make my mortgage payment? My answer is yes. Please call and communicate with your lender on this important question and let me know if I can help with a phone number or even to track down your lender if all of your paper work was lost in the fire. Note if you lost your home I believe your property taxes should be less for now or until your home is rebuilt so call the Tax Assessor and see if they'll lower your property taxes.
  3. What do I do about my Reverse Mortgage? Again, similar to the above---keep things as is--you don't make a payment on a Reverse Mortgage but you want to communicate with the lender what has happened to your home so that you are all on the same page. Remember this is not the first time the lenders or the insurance companies have been through this. Communication is the key. Communicate with your Lender and your insurance company Let me know if I can help in any way.

Once you have had a chance to talk to the Insurance Adjuster and the Lender involved you'll then be on the way toward determining if you plan to rebuild, move or to sale. Again, our hearts and prayers go out to those that were affected by this fire. We are here to help in any way we can.

Now to switch gears a bit, I'd like to let you know what lending has looked like over this past quarter and what we expect to have to work with in closing loans in Redding with the Carr Fire still active in our area. We have closed a couple of loans in Redding in the 96002 zip code area over the past week so we are still closing loans in Redding. Loans in the 96001 zip code area, which is West Redding where the fire hit the hardest, has been ruled out by lenders to fund as of this writing but I do expect this will open back up once the fire is contained. As of today, a couple of lenders have stated that they do not want to fund loans in all of Shasta County. Others are funding loans in zip codes outside of the 96001 zip code area all around Redding. So, loans are still being made. It is important that loans continue to be made for sellers involved who need to be able to sale their homes so they can move on with their next transaction and of course buyers who want to get into their new homes. We are hopeful the fire will come to an end sometime soon and allow our community, economy and lending to heal and resume their important functions in the North State.

This past quarter the loans we closed were split across the board for purchases and refinances where the majority were conventional loans. We did make some VA and FHA loans too this past quarter. The VA is still one of the best loans out there with amongst the lowest interest rates and it does not have annual mortgage insurance where other loans may.

The following notes will give you an idea of the loans that we made this past quarter. We Helped:

  • A young family buy their 1st home.
  • A middle-aged Veteran buy his 1st home.
  • A granddaughter and Grandparents buy a very nice Manufacture Home.
  • Several clients to buy and refinance their homes.
  • A client to consolidate several bills saving them hundreds of dollars a month in interest and payments.
  • We refinanced construction loans to long term fixed lower rate mortgages.
  • We helped a Veteran and his wife buy his dream home.

Special thanks to past clients and professionals for their business and referrals this past month including Jack, Kelli, Carlos and Jeannine, Michelle, Jamie, Toni, Jessica, Rob, and Steve. We appreciate the confidence that you've placed in us in allowing us to take care of you and your clients, friends and families.


Spring 2018 Real Estate News In The North State

04/19/2018

1st QTR 2018 - Home Loan Information

Some interesting things are happening in our national economy that affects Real Estate Lending. This past year the Fed Funds Rate is up 3/4%. This is a pretty significant move. In 2015 the Fed Funds Rate just .5%. This changed to .75% in Dec. 2016. It changed to 1% in March of 2017 and again to 1.25% in June of 2017 and again to 1.5% in Dec. of 2017. The most recent change was another 1/4% increase to 1.75% on 3/21/2018. What does this mean? Well 1st the Fed Funds Rate increase is a precursor to increases in the better known Prime Rate which has followed suit in the last year and the Prime is often the Home Equity Credit Line and Credit Card and Auto loan index so when Fed Funds rates go up other rates on the other lending instruments go up that makes things more expensive for us on a daily basis as we begin to pay more in interest on the money we’ve borrowed.

In addition to rate increases a new IRS Tax rule will change what we can write off regarding 2nd mortgage interest in the future. A general answer to the tax deductibility question came through February 9th Kiplinger Tax Letter where a subscriber wrote the question “can I deduct interest on a home equity loan used to remodel my home?” and the answer from Kiplinger was Yes---debt secured by a first or second home and used to improve the place has always been considered acquisition indebtedness, so the new law’s crackdown on home equity loan doesn’t apply. After 2017, you can no longer deduct interest on such debt used for other purposes, such as to buy a car or pay off credit card debt. "Please be sure to check with your tax advisor to get further personal tax advice as we are not accountants and everyone’s tax circumstance is different."

This past quarter the loans we closed were split across the board for purchases and refinances where the majority were conventional loans. We did make some VA and FHA loans too this past quarter. The VA is still one of the best loans out there as it does not have mortgage insurance at the higher loan to values where most loans do.

The following notes will give you an idea of the loans that we made this past quarter. We Helped:

  • A newly wed professional lady expecting for the 1st time to buy a home for her and her new family. As I was putting this loan together I was thinking what a dynamo.
  • A Veteran convert his construction loan on a new Manufactured home into a 30-year fixed VA home loan.
  • A couple to take cash out to pay bills off and save over $700 a month in payments.
  • Work with attorney’s this past 1/4 to help clients clear title and secure a home loan.
  • Clients to improve their credit scores to obtain lower rates when securing their loans saving them on interest expense in the future.
  • Two clients with 2nd Home loans which offer as good a rate as a primary home loan.
  • A client to obtain a long term fixed rate loan used to pay off a large HELOC (Home Equity Line of Credit) helping them to fix their rate should rates increase in the future.

Special thanks to past clients and professionals for their business and referrals this past month including Jack, Kelli, Carlos and Jeannine, Michelle, Jamie, Toni, Jessica, Rob, and Steve. We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends and families.


Winter 2017 - We Have A Tight Real Estate Sales Market

01/26/2018

4th QTR 2017 - Home Loan Information

As of this writing there are only 756 homes for sale in the Redding area including mobile homes in a park. A realtor friend of mine wrote me to say "I like 1200...more selection for my buyers...great for the sellers though when market is thin......"

This past quarter the majority of our loans were purchase money loans. Of the refinance loans half were for home improvements and half were strict rate and term refinances where we simply help our clients lower their existing interest rates.

The new year brought us some new loan limits. Conventional Loan limits are now at $453,100 which is a $29,000 increase over last year. Veteran Loans followed suit with the same $453,100 loan limit and increase in the new year. FHA increased its loan limit to $294,515. USDA loan limits fluctuate by county and are between $235,612 to $294,515 in the Shasta, Siskiyou, Tehama and Trinity Counties this year. The new higher loan limits should help the majority of real estate loan borrowers in the new year.

Please also note that we make the Reverse Mortgages to and that we take our time with these and make sure that our clients are comfortable with them before we get to far down the road with them. We price the majority of our loans with no underwriting fees, our rates are amongst the lowest in the area and we are closing many loans at or very near 30 days today.

The following notes will give you an idea of the loans that we made this past quarter, We Helped:

  • A Disabled Veteran buy his first home for himself and his family. A proud moment.
  • A couple of clients take cash out of their homes for Home Improvements.
  • Work with attorney’s this past 1/4 to help clients clear title and secure home loans.
  • A couple of our clients to improve their credit scores to obtain lower rates when securing their loans saving them on interest expense in the future.
  • A veteran to obtain a credit score so he can buy a home.
  • A client to obtain a loan used to pay off their construction loan at a very low fixed 30-year rate

Special thanks to past clients and professionals for their business and referrals this past month including Sonja, Mark, Rod, Carolyn, Jamie, Toni, Jessica, Al, Rob, Steve, David, and Jay. We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends and families.


Fall 2017 - It’s A Purchase & Fix UP The

10/28/2017

3rd QTR of 2017 - Home Loan Information

This past quarter 57% of our loans were purchase money where 43% were Refinance Loans. Of the refinances a majority of these were to take money out to fix up the home or to payoff credit cards that had been used to fix up the home.

In the lending industry we are starting to see the resurgence of the 2nd mortgage. This means to me lenders are comfortable with the health of the Real Estate Market today. If looking at a 2nd mortgage be sure to ask questions like is the interest rate fixed or variable, how long do you plan to take to pay it off (2 years -or-10 years), is there an upfront fee, is there a prepayment penalty and how does it work?

In the government loan mix, we made FHA, VA and USDA Loans this past quarter. FHA loans made up the majority of our government loans. We also make Conventional and Reverse Mortgages too. We have no underwriting fees on most of our loans at this time. We are closing many loans at or very near 30 days today.

To give you an idea as to some of the loans that we made this past quarter, We Helped:

  • 2 Reverse Clients to obtain their loans with very little closing costs and another at a relatively low cost. In these cases, we freed up disposable income so that they can enjoy lives to a fuller extent without a mortgage payment.
  • Several clients take cash out of their homes for Home Improvements.
  • A client to buy his father’s home out of the family trust.
  • Several clients to purchase or refinance after credit problems including bankruptcies and foreclosures. Often, we can work with credit to increase scores and lower rates.
  • A veteran work to obtain a credit score so he can buy a home in the near future.
  • A client to purchase a home and relocate back home in the Shasta County area after living abroad for 25 years.

Special thanks to past clients and professionals for their business and referrals this past month including Mark, Rod, Carolyn, Jamie, Toni, Theresa, David, Mike, Tammy, Brian and Jay. We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends and families.


Summer 2017 --- It’s A Purchase Market

08/08/2017

2nd QTR of 2017 --- Home Loan Information

This past quarter 80% of our loans were purchase money where 20% were Refinance Loans. This is a
big shift from last year when this mix was 50/50. This data tells us that most of borrowers that had
been thinking about refinancing for lower rates have done so and we’ve entered more of a Purchase
Loan Market at this time.

Federal Reserve Chairwoman Janet Yellen stated late last year that she could see the Fed Funds rate go
to 3% by the end of 2018. It is currently holding at 1 to 1.25% today so we are likely to see higher rates
in the future but for now she also came out to say recently that the economy is not increasing to the
desired 2% annual growth rate she’d like to see. With this in mind we may not see another rate hike this
year and we may not see 3% by the end of next year unless the economy really starts to kick into gear.
What does this mean-- -rates may stay down for a while yet.

In the government loan mix, we made FHA, VA and USDA Loans this past quarter. FHA
loans made up the majority of our government loans. We also make Conventional and
Reverse Mortgages too. We have no underwriting fees on most of our loans at this time. We
are closing many loans at or very near 30 days today.

Average Note Rates on Loans Today Are Still Very Close to 50 Year Lows.

To give you an idea as to some of the loans that we made this past quarter, WE HELPED:

 

  • Several clients to overcome past credit, foreclosure and short sale problems resulting in the ability to buy again and in several instances, we’ve helped clients improve their credit scores resulting in lower interest rates. 
  • Two clients’ buy their grandparents past home, keeping the home in thefamily.  This is very nice and rewarding.
  • Several client’s buy their 1 st and 2 nd homes this past quarter.
  • We helped a veteran and his wife to buy a home. Prior to that they were renting. When we started he was concerned that they couldn’t buy a home. When the loan was complete, with a tear in his eye he gave me a big handshake. This made my day, my week and it's why I work hard at my job.
  • We helped a client secure a Reverse Mortgage. This freed up disposable income so that hecan enjoy life a little better without a mortgage payment.

Special thanks to past clients and professionals for their business and referrals this past month including Mark, Rod, Carolyn, Jamie, Toni, Theresa, David and Mr. Brown. We appreciate theconfidence that you’ve placed in us in allowing us to take care of you and your clients, friends
and families.


Winter 2016 --- Where Will The Rates Go From Here?

02/15/2017

4th QTR of 2016 - Home Loan Information

This past quarter real estate lending did pick up with borrowers getting in their refinances and purchases prior to the rates making another move up this past QTR. The two big pieces of news this past QTR was of course that Donald Trump was elected to become our 45th President and that the Federal Reserve increased the Fed Funds rate from .50% a year ago to .75%. If the US and World economies start to fire on all cylinders Janet Yellen; our Federal Reserve Chairwoman, has stated she could see the Fed Funds rate go to 3% by the end of 2018 so we are likely to see higher rates in the near future. One thing is for certain, regardless of where the rates go, people will always need money.Money and real estate loans help to improve our client’s lives---Accelerated Mortgage is a part of that and we thank you and are honored to be able to help our clients with this financial endeavor.

In the government mix we made FHA and VA Loans this past quarter. VA loans made up the majority of our government loans. We have no underwriting fees on most of our loans at this time. We are closing many loans at or very near 30 days today.

Average Note Rates on Loans Today Are Still Very Close to 50 Year Lows.

To give you an idea as to some of the loans that we made this past quarter, we helped:

  • A young couple with 6 boys take out a Home Improvement loan to be used toward remodeling and upgrading their existing home.
  • Several veterans refinanced to make Home and Improvements and to simply lower their interest rates saving them on interest and payments.
  • We helped a client refinance after working through some credit challenges.
  • We helped a single mom with 4 kids to buy her 1st home. 3 of the kids are foster kids and she worked with her credit for months to get herself and this family in a position to be able to do this. Congratulations to her! What a neat thing to be able to help out!

Special thanks to past clients and professionals for their business and referrals this past month including Brad, Mark, Rod, Carolyn, Jamie, Toni, and Rudy. We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends and families.


Fall 2016--- Election Affect, Good For Rates?

11/27/2016

3rd QTR of 2016 - Home Loan Information

Loans this past quarter at AMS (Accelerated Mortgage Services) were made up of 55% government loans and 45% conventional loans. The big news at the beginning of October was that USDA lowered their upfront Funding Fee from 2.75% to 1%. USDA stated “Because foreclosure and delinquency rates have fallen to historic lows, USDA could afford this reduction”. In the recent past we saw FHA drop their Annual Mortgage Insurance fee from 1.35% to .85% for the same reason. The post melt down real estate market is now considered healthy by the real estate lending agencies which is translating into saving for our borrowers.

The next question is will the savings in real estate loans continue. With the Presidential Election on the horizon it really is anyone’s guess. I do see many financial planners and analysts putting odds on an increase in the Fed Funds Rate by year’s end which may mean the beginning of the end of the easy money and low rate policies we’ve all benefited from in the recent past. My advice is that if you’ve been thinking about refinancing to lower your rate now is the time. If the loan pays for itself by lowering your rate through interest savings in 2 years and you plan to be at your home for two years plus it could likely be a very good move to make at this time.

Average Note Rates on Loans Today are Very Close to 50 Year Lows.

To give you an idea as to some of the loans that we  made this past quarter, we helped:

  • Two clients buy retirement homes in Redding. One client from the Mid-West and another from Sonoma County.
  • Several clients out with near 50 year low rates on Home Purchases and Refinances.
  • A couple take cash out with a standard conventional loan to remodel their home.
  • Several couples and individuals buy their 1 st homes. This is always a neat thing.
  • A gentleman obtain a Reverse Mortgage that was not getting very good service from a company down south. In addition, he wanted to be able to talk someone in person. I worked with this gentleman and it was very much a pleasure to close his reverse mortgage.

Special thanks to past clients and professionals for their business and referrals this past month including Steve J., Dorris, Mark, Rod, Jessica, Karen , Carolyn, Steve B., Jamie, Toni, Rudy, and Mike. We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends and families.


Summer 2016, Britain's Exit Good For Rates

08/13/2016

2nd QTR of 2016 - Home Loan Information

This past quarter real estate lending did pick up with a dip in rates as a result of Britain’s Exit from the EU. Our loans at AMS (Accelerated Mortgage Services) this past quarter were made up of 45% government loans and 55% conventional loans. The big news this coming October is that USDA has stated they will lower their upfront Funding Fee from 2.75% to 1.75%. This 1% drop can save a person up to $2,000 on a $200,000 purchase. What’s interesting on the larger scope is that the USDA Loan Program must be on pretty solid footing to lower a fee like this vs. just after the meltdown when these fees were going up. This is good news when you read a bit deeper into the fee story.

In the government mix we made FHA and VA Loans this past quarter. FHA loans made up the majority of our government loans this past quarter. VA brought up a close 2nd. With the lower rates in all loan categories consumers are getting opportunities to streamline refinance FHA and VA loans again which means no appraisal, income or asset qualification saving borrowers time and money. We have no underwriting fees on our VA loans and very little Origination if any on most of our loans for over a year now. At this time we are also donating $150 per month to our local Veterans Resource Center to help our local veterans with their needs and to help them get back on their feet.

Average Note Rates on Loans Today are Very Close to 50 Year Lows.

To give you an idea as to some of the loans that we made this past quarter, we helped:

  • A young couple and their 6 kids to buy their 1st home through the VA loan program. 3 girls in one room, 3 boys in another and mom and dad in the 3rd—a busy household.
  • A young single mom and her daughter purchase their 1st home through an FHA loan.
  • A couple take cash out with a standard conventional loan to remodel their home.
  • A couple obtain a Reverse Mortgage to do some major remodeling to their home in addition to taking some money out to dedicate toward vacations with their kids and grandkids to create memories. Very nice!
  • A couple in Illinois to buy a 2nd home in CA—closer to family when they retire.

Special thanks to past clients and professionals for their business and referrals this past month including Dorris, Mark, Rod, Becky, Carolyn, Jamie, Toni, Rudy, and Steve. We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends and families.


Spring 2016, Steady As She Goes!

06/03/2016

1st QTR of 2016 - Home Loan Information

This past quarter was a little up---a little down---average in the end. I think there is some concern that the Federal Reserve does want to move rates up which will in the end increase our mortgage rates. Consumers are keeping a close eye on this and refinancing and buying while the rates are still low. The problem for the Federal Reserve is that both nationally and internationally it doesn't appear that world economies are on fire so it is hard for them to increase rates when we are trying to get our economies clipping along in a steady but upward fashion.

Government loans made up 35% of our loans this past quarter while conventional loans made up the remainder. The big news this quarter is that USDA is lowering their fees on October 1st of this year from 2.75% to 1% up front and from .5% to .35% annually at a huge savings to 1st time homebuyers. This is a significant savings for our borrowers. An Interesting note-- FHA lowered their fees last year at about the same time. The take away is that Government Loan Program balance sheets must be stronger than in years past allowing them to lower their fees.

In the government mix, VA loans made up the majority of our government loans. We pride ourselves in doing a very good job with all loans but we do an especially nice job with the VA Loans. We are familiar with the requirements of this loan, have lenders that don't charge an underwriting fee and can close them quickly. Often within 30 to 40 days. We also continue to give back to the veterans by donating monthly to our local Veterans Resource Center to help our local veterans in need.

Average Note Rates on Real Estate Loans Today Are Still Very Close to 50 Year Lows.

To give you an idea as to some of the loans that we made this past quarter, we helped:

  • A young veteran and his family increase their score so that they could buy their 1st new home through the VA loan program. 6 kids---3 in each room. Got to love it!
  • Saved a veteran $3600 in loan costs vs. what an out of area lender offered.
  • Helped a professional buy a 4-Plex at a very nice rate using a conventional loan.
  • Helped a single man payoff a private party loan on his double wide manufactured home.
  • Helped several couples and individuals buy their first homes---pretty exciting!

Special thanks to past clients and professionals for their business and referrals this past month including Brad, Corey, Steve, Terri, Suzanne, Carl, Jamie, Toni, Mark, Becky, and Carolyn. We appreciate the confidence that you've placed in us in allowing us to take care of you and your clients, friends and family.


Quarter 4 2015 Home Loan Information

01/27/2016

This past quarter real estate lending has been steady at AMS (Accelerated Mortgage Services) with government loans making up 53% of our loans and conventional loans making up the other 47%. The big news this past quarter was that the Federal Reserve finally raised the Fed Funds Rate ¼%. In general this is a sign the Federal Reserve feels the economy is getting better. Although I see some signs of an improving economy in steady real estate values and employment there are still some economic concerns with China’s economy slowing and the net affect thus far has had little effect on mortgage rates at this time.

Average Note Rates on Real Estate Loans Today Are Still Very Close to 50 Year Lows.

In the government mix we made FHA, USDA and VA Loans. VA loans made up the majority of our government loans. We pride ourselves in doing a very good job with all loans but we do an especially nice job with the VA Loans. We are very familiar with all of these loans and have lenders that don’t charge an underwriting fee and can close them quickly. At this time we are also donating $100 per VA loan closed to a local Veterans Center to help our local veterans with their needs to help them get back on their feet.

To give you an idea as to some of the loans that we made this past quarter, we helped:

  • We helped a veteran from Southern California buy a home in Redding to retire in.
  • Helped a couple obtain a reverse mortgage to eliminate their monthly payments.
  • Made a low rate USDA loan to a couple in need of more room for them and their 4 adopted kids.
  • Helped a couple payoff a higher rate VA loan saving them close to $8,000 in interest saving per year, Wow!
  • Helped one of our favorite Doctors obtain a 2.875% fixed 15 year loan, very nice.
  • Helped a few other couples to buy their first homes and 2nd homes, pretty exciting!

Special thanks to past clients and professionals for their business and referrals this past month including Carolyn, Dale, Carl, Terri, Tammy, Mark, Cory, Steve, Jay, Rudy, and Shelley. We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends and families.


Quarter 3 2015 Home Loan Information

10/24/2015

In this past quarter, 62% of our loans were purchase money loans and 38% were refinance loans.   Of these loans, 58% were conventional, 25% were FHA and 5% were USDA and 12% were VA loans.  We also make Reverse Mortgages; they fall into the FHA category. 

What's New

On October 3rd the industry had one more disclosure change which is good for the consumer in that it allows 3 additional days  to review the loan terms prior to signing loan documents.  This is good as the real estate loan is often one of the largest financial transactions people make and this process should not be rushed.  It should be thought out and this gives the consumer a little more time to make sure they are comfortable with the payment, the rate, the terms of the loan etc.

Average Note Rates on Loans today are within 3/8% off  50 year lows!

This past quarter, we helped:

  • Two educational  professionals purchase homes in Trinity County.
  • A single mom buy a new home for her family in  the right school district.
  • A young couple buy their first home with no  money down in Siskiyou County.
  • Several clients get back into the housing market  after past housing events (Foreclosures, Short Sales). This is pretty common  today in the wake of The Great 2009 recession.
  • A couple of our clients place a commercial loan  with a local bank so they could raise the money needed to buy the home of their  dreams.

Special thanks to past clients  and friends including Steve, Corey, Graceyn, Jamie, Toni, Jay, Tom, Jim and  Janice, and Shelley.


Will Rates Rise?

07/09/2015

Summer 2015-Will Rates Rise?

The question I am hearing more and more today is when do I think rates will start to go up again? My answer is that it’s hard to say. Our rates in the U.S.A. today are more and more dependent on what is going on in the world economy as opposed to just our U.S. economy. Note that Greece is having financial difficulties, China is experiencing a bit of a bubble in their stock market. The U.S. appears to be doing well with job creation. All this balances out to a steady as she goes with rates with maybe a fed funds increase in rate by the end of the year. If we do get an increase I expect it to be very small so I think we can expect rates to be close to where they are at today through the remainder of the year. 

This past ¼ 35% of the loans made were Conventional Home Loans, 35% were VA and 30% were FHA Home loans. USDA really tightened down on their Debt to Income guides so we are seeing less of these loans today compared to say two years ago but they are still and excellent loan for the 1st time and or rural (out of the city limits) home buyer. We pride ourselves in doing a very good job with all loans but we do an especially nice job with the VA Loans. We are familiar with the requirements of this loan, have lenders that offer about the lowest rate out there and don’t charge an underwriting fee and we can close them quickly. At this time we are also donating $100 per VA loan closed to our local VRC (Veterans Resource Center). The VCR helps our local veterans with their needs to help them get back on their feet. 

To give you an idea as to some of the loans that we made this past quarter, we helped:

  • Several veterans purchase new homes with their low rate VA loans
  • A couple retirees to refinance their homes with conventional loans lowering their rates so that their interest rate savings helped to pay for the refinance within 2 years or less.
  • Helped a school administrator and his wife purchase a home using an employment contract in lieu of a paystub allowing us to close 30 days sooner than a competitor. 
  • A past client with a cash out refi used to purchase some equipment for his business. 
  • Helped other couples to buy their first homes and 2nd homes after difficult housing events in their recent past---pretty exciting!

Special thanks to past clients and professionals for their business and referrals this past month including Jay, Rod, Mark, Carl, Brad, John, and Greg. We appreciate the confidence that you’ve placed in us in allowing us to take care of you and your clients, friends and families.