MORTGAGE RATES REACH HISTORIC LOWS!

Many homebuyers are still on the fence whether to buy now or wait for rates and prices to go down further. The big question is: have we reached rock-bottom yet? That’s a question that no one can predict, and it is not going to be a simple answer as market conditions change on a daily basis.

The great news is, mortgage rates have reached an all time low and it would be most sensible to lock in the rates now if it fits within your budget. We have not seen rates like these in 52 years – and we don’t know how long this opportunity will be available to well-qualified borrowers. The bottom line is, do not take a chance and play a waiting game if you are ready to buy and has found a property you like.

The following information is provided by one of my preferred lender Aaron Gordon of Countrywide Home Loans:

“As the government announces more purchases of mortgage-backed securities, rates continue to plummet.

Interestingly, if you are still sitting on the sideline waiting for rates to drop further, the head of Freddie Mac came out this week and said he believes rates are at the bottom and any further drop will be minimal.

Plan on around:

• 4.375% WOW! (APR 4.508) FOR A 30 YR FIXED CONVENTIONAL LOAN with ONE POINT, NO ORIGINATION!
• 4.750% (APR 4.862) FOR A 30 YR FHA / VA LOAN, WITH ONE POINT, NO ORIGINATION!
• 5.750% (APR 6.024) ON A 30 YR JUMBO LOAN OVER $417,000 with ONE POINT, NO ORIGINATION!
• 5.125% (APR 5.262) ON A 5 YR JUMBO AR M with ONE POINT, NO ORIGINATION!

NO ORIGINATION FEE ON ANY OF THE LOANS ABOVE. These rates are for purchases only. Refinance rates are slightly higher.

NEW GUIDELINE ANNOUNCEMENTS THIS WEEK:

FHA announced new limits to cash-out refinances. They used to allow cash-out up to 95%. It’s now been lowered to 85%. Here are the rules:

• Must have owned the property at least 12 months
• You cannot be behind in your mortgage.
• You cannot have a non-occupying co-borrower to qualify for the new cash out limits.”

Here are more good news from Paula Clark, also a preferred Home Mortgage Consultant from Wells Fargo Home Mortgage:

“Friday's news showed that consumers are being understandably cautious with their finances, as the Personal Savings rate remained above 4% once again in February and among the highest savings levels seen in a decade.

Meanwhile, the government continues to make bold moves to help our economy. On Monday, Treasury Secretary Geithner unveiled a plan to remove toxic assets from financial institutions by using money from the $700 Billion TARP fund. The government will help mitigate the risk by offering private investors Billions of dollars in low-interest loans to help finance the purchases. Indeed, it's a bold strategy - let's see if it pays off!

And...there's room for cautious optimism on the economy, as good news was noted on several fronts last week. The housing market received good news when both Existing Home Sales and New Home Sales came in stronger than expected. Additionally, Durable Goods Orders for February came in better than expected, showing the first increase in six months, and the Core Personal Consumption Expenditure Index (Core PCE) showed inflation is presently at tolerable levels. Plus, the US Dollar received a boost when China said it will continue to purchase US Treasuries.

Bonds were jostled around mid-week, but home loan rates ultimately ended the week very close to where they began...near historic lows.”

You can read Paula’s full bulletin at http://www.mmgweekly.com/w/w.html?SID=81ca0262c82e712e50c580c032d99b60

Paula can be reached at tel. 702.868.3920, Cell 702.277.3554, email at paula.l.clark@wellsfargo.com, or on the web at http://paulalclark.com/.

Overall, the market is showing some robust activities in the last weeks. We at The Dulcie Crawford Group are always at the forefront to bring you the latest updates and will be happy to answer any questions you may have and assist you in your homebuying process. Call us today!

NEVADA BOND PROGRAM/100% FINANCING - LOWERS RATES!

Today, the Nevada Bond Program, the only active program with 100% financing, announced lower rates. Effective with new loan registrations on or after March 12, 2009, the Nevada Housing Division will adjust rates for the 2008 program as follows:

30 YR-FIRST MORTGAGE IS NOW 6.67% (it was 7.250%)

20 YR-2nd MORTGAGE, WHICH IS USED FOR THE DOWN PAYMENT ASSISTANCE, IS NOW 8.50% (used to be 9.250% )

The NHD bond program offers a first mortgage along with a second mortgage for down payment assistance of up to $10,000. Restrictions apply.

For details, please feel free to contact my preferred lender:

Aaron Gordon
Home Loan Consultant / Sales Manager
Countrywide Bank, FSB
Cell: (702) 283-2333
Office: (702) 304-8900
Secure eFax: 1-866-905-7922
10190 Covington Cross Drive #190
Las Vegas, NV 89144
email: aaron_gordon@countrywide.com
web: http://countrywidelocal.com/aarongordon

ARE YOU ELIGIBLE FOR THE OBAMA MORTGAGE PLAN?

Here is another helpful piece concerning the new Home Affordability and Stability Plan (HASP), courtesy of my preferred lender Aaron Gordon at Countrywide Home Loans.

There have been a lot of questions about the HASP that will allow for refinances up to 105% of property values and for note modifications down the 31% of income, if the investor on your loan is Fannie Mae or Freddie Mac.

Answers and guidelines have been coming in daily. Some are very exciting.

For example, the plan doesn't care about occupancy. It applies to investment and vacation homes as well as owner-occupied homes. There are no minimum credit score requirements. There are no debt-to-income maximums. You just have to demonstrate an ability to repay.

Here is how you can determine if you are one of the seven to nine million homeowners eligible for relief under the plan:

STEP ONE: ARE YOU FANNIE OR FREDDIE BACKED?
To determine if Fannie Mae or Freddie Mac is the investor on your loan, a requirement of the program, you can do any of the following:

1) CALL your servicing company, which is where you send your payment.

2) Or you can do this by INTERNET:

Does Fannie Mae Own Your Mortgage? Click or copy and paste the link below:
http://www.fanniemae.com/homepath/homeaffordable.jhtml

Does Freddie Mac Own Your Mortgage? Click or copy and paste the link below: http://www.freddiemac.com/corporate/buyown/english/avoiding_foreclosure/avoiding_foreclosure_form.html

3) Or you can do this by TELEPHONE:
FREDDIE MAC 1-800-FREDDIE (8am to 8pm EST) FANNIE MAE 1-800-7FANNIE (8am to 8pm EST)

STEP TWO: DETERMINE ELIGIBILITY
If this home is your primary residence, go to www.FinancialStability.gov or click or copy and paste this link: http://www.financialstability.gov/makinghomeaffordable/refinance_eligibility.html

This site will walk you thru a step-by-step questionnaire that will help you determine eligibility and more.

STEP THREE:
If it says you are eligible for refinance, call your preferred loan officer. If you are eligible for Note Modification, call your bank.

NOTE: If this property is a vacation home or an investment home and the home's value is upside now in value by no more than 5%, call your preferred lender and ask if you are a candidate for HASP. It may take a few weeks before guidelines are known but you can start getting on interest lists now.


We at The Dulcie Crawford Group are continually on the lookout for information that can affect your individual real estate situation, and we would like to be your leading source of information. Stay tuned for more updates as they become available.

FHA RAISES CLARK COUNTY LOAN LIMIT TO $400,000

Just hot off the press, we are excited to share this very good news to all of you, courtesy of my preferred lender Aaron Gordon at Countrywide Home Loans.

As part of the Obama mortgage plan, that FHA has raised the loan limit to $400,000 in Clark County and $325,000 in Nye County.

You can find details at https://entp.hud.gov/idapp/html/hicost1.cfm

This means buyers looking for homes up to $412,000 can now qualify with as little as 3.5% down. This is one ray of hope that we have been waiting for to boost the housing industry and hopefully, be the catalyst for a much needed market stability.

Stay tuned for details on rates. If you or someone you know has been putting off the decision to buy a home, I can’t think of a better reason than this! The market is primed for qualified buyers: there is a sizeable amount of great inventories, mortgage rates are at an all-time low, and financing is available for responsible borrowers. It’s a win-win situation for buyers and sellers.

Please feel free to contact me if you have any questions at 702.285.1990. The Dulcie Crawford Group aspires to be your trusted Realtor for life!

STIMULUS PACKAGE AND OBAMA MORTGAGE PLAN ....SIMPLIFIED

Here is a very straightforward article with regard to the Obama Stimulus Package signed into law this week and how it could affect you as a homeowner or buyer, courtesy of my preferred lender Aaron Gordon of Countrywide Home Loans. His contact information is below for your reference should you need to contact him. We at the Dulcie Crawford Group will also be happy to answer any questions you may have. We have also included some links to the Stimulus Package if you are interested to learn more.

There has been a lot of activity this week attempting to solve the historic economic problems. No one expects this to cure the problem overnight but it could reduce the damage.These two plans have a dramatic effect on our business. Let me try and make them easy to understand.

The $787 billion Economic Stimulus Package

Here is how the Economic Stimulus Package affects our business:

The Fannie and Freddie loan limits will be raised to $727,000 in high cost areas.

Although this doesn't affect Las Vegas, which will stay at $417,000, it does our neighbors in Southern California. Market recovery in California is nearly as important to our local economy as theirs. Keep in mind most of our tourists come from their and many of our transplants.

The first-time homebuyer tax credit will be raised to $8,000 with no payback. Many were hoping this would be $15,000 as first passed through the Senate but it's settled at $8,000. You have to buy a home between January 1, 2009 (yes, it's retroactive) and December 31, 2009. You have to be a first-time homebuyer or have not owned a home in the last three years. To get the full benefit, you have to make less than $75,000 as a single tax payer or $150,000 as married taxpayers.

If you sell the home before you have been there three years, you have to forfeit the credit or pay it back if you already wrote it off. This credit is different than the $7,500 one first-time buyers got in 2008. Right now, that credit has to be paid back. However, there is some discussion that it may not have to be repaid. If the repayment provision in the new home buyer tax credit is made retroactive back to April 9th 2008, when that planfirst took place. This detail is still to be finalized.

Interest rates should stay low

Rates have been driven down to historic lows since late November. This is a direct result of the Government buying hundreds of billions of dollars in mortgage-backed securities.The Economic Stimulus package calls for the Government to buy another $200-300 billion of mortgage paper from Fannie and Freddie. We could see historically low rates through the end of the year.


The Homeowner Affordability and Stability Plan (Obama Plan)

You can read the plan here:
www.treas.gov/initiatives/eesa/homeowner-affordability-plan/FactSheet.pdf

The complete details will be announced on March 4th.

The plan seeks to help as many as 9 million Americans avoid foreclosure by restructuring or refinancing their mortgages. The program is intended to help responsible homeowners who are experiencing financial hardship and may be at risk of losing their homes to foreclosure. Lenders will not be forced to participate. It’s voluntary.

Here are the highlights:

Right now if you want to refinance, and your loan amount is over $287,500, you need around 20% equity in your home. The new plan allows homeowners who are current on their mortgage to refinance through Fannie and Freddie up to 105% of the value of their home.

This means if you owe $200,000 on your home and it's only worth $190,000 youcan now refinance. The 105% financing includes your closing costs up to 4%.Most Las Vegans are more than 5% upside down. There is not much relief for them in this plan.

If you are late on your mortgage, the Government is now introducing a new standardized form of note modification. This is NOT a principal reduction. Your loan amount will not change. This is modifying your existing loan. If you currently owe $250,000 on your mortgage and your home is worth $175,000 you would be modifying your $250,000. Not getting a new mortgage for less.

The Government will be financially incentivizing homeowners and loan servicers who modify mortgages successfully. If you modify your loan under this plan and make your payment on time for five years, you may be eligible for up to $5,000 in reduction of your mortgage debt.

The lenders who participate in the plan will be agreeing to let you modify your loan to 38% of your gross income. This means if you make $4000 per month, they will be agreeing to lower your payment to $1520. Then the Government will step in and help you lower your payment to 31% or $1240. They will pay the lender the difference out of the $75 billion in the fund.

You need to be able to document your income. This will be challenging for some self-employed borrowers.

The government is also investing hundreds of billions in Fannie and Freddie to keep them solvent and aggressive in making loans, while keeping mortgage rates low.

If you seek relief under the plan, the home must be your primary residence. Investment properties and second (vacation) homes are not eligible.The loan must be a conforming loan. That's $417,000 or under in Las Vegas. The homeowner must be able to qualify for a 30-year fixed mortgage payment with their current income.You must be employed to take advantage of the refinance. If you are not, you may be eligible for the modification still.

You may be eligible for a loan modification in this plan even if you have not been late yet or missed a payment. Let's say you have a first and second mortgage. Under this plan, you may be eligible to modify the first lien so long as the second agrees to re-subordinate the second if necessary.

The plan also calls for changes to personal bankruptcy provisions. This plan will allow bankruptcy judges to modify mortgages written in the past few years.If you have any questions, please don't hesitate to contact me.

Aaron Gordon
Home Loan Consultant/Sales Manager
Countrywide Bank, FSB
Cell: (702) 283-2333 Office: (702) 304-8900
Secure eFax: 1-866-905-7922
10190 Covington Cross Drive #190Las Vegas, NV 89144
email: aaron_gordon@countrywide.com
web: http://countrywidelocal.com/aarongordon

More on the Stimulus Bill on the web:
http://news.yahoo.com/s/ap/20090214/ap_on_go_co/stimulus_stakes_who_gets_what
http://news.yahoo.com/s/ap/20090215/ap_on_go_pr_wh/obama

Las Vegas Sales up 15% and new Home Buyers Tax Credit

The Month of February has been as busy as January in the re-sale Housing market.
Sales are up 15% in the last quarter of 2008 and I expect to see the same pattern in the first quarter of 2009. I am seeing many first time buyers taking advantage of the new pricing and interest rates in the low 5% range and even high 4% range over the past two months now. I have also experienced more calls and requests for relocation materials and information than I had seen in 2008. This level of relocation interest may be showing that housing affordability has reached a level that will create new growth in our city again. I am optimistic as usual that the housing market will recover next year, but that depends if the new administration in Washington gets more proactive in the housing sector. If they do more with the toxic debts that the banks now hold to buy it off the banks’ hands, we can see a recovery much quicker, and inventory levels will plummet quickly as well. I do not feel that we will see appreciation growth into the 10% range again until 2012, but we could see 3-4% as early as late 2010 or early 2011.

There is, however, some silver lining showing on the horizon. According to a recent article in Forbes.com, “Motivated sellers in Las Vegas accounted for 64% of sales in October, the highest rate in the country. Home sale prices from last year are down 28%, but home sales are up 15%. That means buyers are getting deals and hastening Las Vegas' recovery.” I’ve included the link to the full article, as well as how the Stimulus package will impact home buyers.

Buyers in this market need to weigh in on what it will cost them to buy now at these all-time low interest rates vs. if the housing market should continue down another 5-10. Over the life of a 30 year loan, a buyer paying .5% higher interest rate will usually cost them more than if the home went down 30 or 40K. Buyers should also consider the tax implications of putting off buying and renting as well. Higher tax bracket income earners are loosing valuable tax breaks while renting. As one of my recent clients said to me recently as they closed on their new home “I need to start living a settled and permanent life with my family to be able to enjoy each day instead of wondering when I may get a notice to vacate my rental home. My wife wants to paint walls, hang curtains and plant a garden, these are things we have put off just renting and not owning. The rest of our settled lives begin NOW.”

The Stimulus package has been approved, and I will blog on what exactly it will mean for home owners and the housing market again in the next few weeks, as more credible information unfolds.

If you are ready to Buy or Sell call me for a no obligation consultation.

Have a great Valentines Day!!

Dulcie Crawford

Starting 2009 on a Positive Note

Well, we are moving in a positive direction again! The end of 2008 ended with Sales at a huge growth over this time last year, please see the Ticor Title market report chart below for the market sales in January 2009.

Prices still fell in the last quarter, but sales continue to climb. This is such an unusual combination that a Buyer’s market like this cannot last much longer.

I am also including a report from Morgan Stanley now owned by JP Morgan Chase Bank that discusses the effects of the economy if rates do fall to 4.5% which they are close to now. Please see the Rate report from Countrywide Home loans and the Tip of the week from Aaron Gordon, one of my preferred lenders. Aaron discusses tips to get offers accepted by the bank, and that they have to be written to cover costs that may be new to the borrower's side. It takes sharp and strong negotiations to get buyers what they want when the banks try to rule the deal. The Real Estate Agent needs to know what they can negotiate and what can’t be negotiated on the buyer’s side to make the deal work, but to still get the best possible price but fair deal for the Buyer.

The Political world is also discussing rates getting as low as 4% to further stimulate the economy and help re-finance out many loans that could end up in a “At Risk” scenario as the bank would say.

Many banks are aggressively re-modifying loans now, and working to approve short sales quickly verses the long delays we had seen in early 2008. I have had several borrowers tell me that they are being offered attractive deals to stay in their homes vs. short-sale or foreclose.

I am consistently adding new helpfull pages to my Website. Please see my new Raving Clients page, and the link to http://www.understandingforeclosureslasvegas.com/.

Any Questions please feel free to call or e-mail me anytime.

TIP OF THE WEEK : "HELP ELIMINATE THE BUYER'S CLOSING SURPRISE"
Last week, I wrote about how 3% may not be enough to cover your buyer's closing costs today on bank-owned properties especially on sales prices below $150,000.
This can create a financial surprise at close can create a delay in your closing or, even worse, jeopardize it.

Here are some tips for you to look for when reviewing your net sheet and getting a Good Faith Estimate, especially when you are hopeful to get back part or all of your earnest deposit money.

Taxes are higher today. Due to the dramatic depreciation in sales prices, many homes have property taxes that are far higher than "normal." Most lenders use automated systems that tell us the "average" property taxes for a home in that sales price. We based our Good Faith Estimates on that number. That number is often wrong. When you get pre-qualified, its important to send the lender the MLS listing that shows the property taxes or at least let the lender know who much the property taxes are for better accuracy.

County Taxes. The County usually collects between 4 - 6 months in property taxes in advance. If your Good Faith Estimate says anything less, call the County to confirm what will be collected at the time of your closing.

Foreclosure Fees. Many selling banks have fees related to your transaction that they are counting in your seller contributions. I have seen this fee as high as $1000. Be prepared. Ask your escrow officer to get a list of the selling bank's fees early in your transaction.
Transfer taxes. This tax, which is $5.10 per $1,000 or sales price, can be paid by the buyer, seller or both. However, some sellers, like Fannie Mae and Freddie Mac, will not pay this at all. Know who is paying this tax and communicate it to your lender.

Prepaid property taxes. Some selling banks have paid the County the property taxes on the home they foreclosed on many months or quarters in advance. When you buy this home, they must reimburse the bank. I have seen banks that pay 2 -3 quarters in advance. This can be a big number that surprises the buyer at close. Get with your escrow officer to see how far in advance your selling bank is on their taxes.

HOA fees and HOA Transfers. We are seeing HOA fees and transfers much higher on bank-owned properties than on a normal buyer-seller transaction. Please confirm what's owed the HOA with your escrow officer as early in the transaction as possible.

Limits on seller contributions. Some selling banks, when they agree to pay closing costs, no matter how much they agree to pay, will still refuse to pay certain items like title fees, escrow fees, and more. Its important to get with your agent to see if the bank you are dealing with has any conditions like this before going over closing costs with your buyer.

The bottom line is we all have high expectations of customer service. We all want your transaction to be as smooth and problem-free as possible. The greatest threat to these high standards is a financial surprise at close or a buyer who is expecting a refund at close that doesn't come.

By understanding the unique nature and costs of dealing with REO properties and banks as sellers, we can all avoid financial surprises at close.

Gordon Team - Weekend Rate Report - January 16, 2009

WEEKLY RATE REPORT:

Although national news is reporting that rates are down from last week, which is incredibly the 11th week in a row they have declined, in this week-to-week report, which runs Friday to Friday, they have increased slightly. The national news reports rates from Wednesday to Wednesday.

The 30 year on a conventional loan is around 5.000%. FHA / VA - 5.250%. Jumbo loans over $417,000 around 6.125%.

Why are rates staying so low? The Fed is buying mortgage bonds. This is making it so mortgage rates stay down. The Fed is doing this to stimulate home buying.

Although refinancing is at a fever-pitch, these low rates are not stimulating purchases as hoped.

Refinances are up over 100% from this time last year.

NEW GUIDELINE ANNOUNCEMENTS THIS WEEK:

Some big announcements this week. Second mortgages are getting even more challenging to get unless you have excellent credit.

Fannie Mae announced risk-based pricing adjustments, based on credit scores, on their loans this week.

What this means is that if you plan on putting down 10-20% down to get a conventional loan, don't expect the 5.00% rate of today unless you have credit scores over 680.

There will be additional rate adjustments on you as your credit score decreases. Your rate today could be as high as 6.000% or 7.000% as you get closer to a 620 credit score.

Lower the credit score, the higher the rate, unless you do FHA or VA.

SUCCESS STORY OF THE WEEK: "Frankie, Janie and the Gamble"

Earlier this year, Frankie and Janie were buying a home using an FHA loan.

When I first discussed rates with Frankie, the 30 year was about 6.375%. He didn't like the rate. "Aaron, lets float," he said. Although I strongly suggested this was a bad idea, Frankie was adamant. "The Fed is lowering the Prime rate and mortgage rates are coming down too," he said.

I explained to him that the Prime Rate is an overnight rate in which banks loan money to each other. The Prime Rate is not directly tied to mortgage rates. Mortgage rates are tied to bonds. Frankie didn't care.

"Trust me, they are coming down!!" he said. Janie disagreed with him and wanted to lock too. However, she couldn't convince him either.

As his close of escrow quickly approached, the market turned for the worse. 6.500%. 6.625%. Then 6.750%. At each level, we spoke. "Just watch! It's coming down," he said.

It didn’t. When it came time to close his loan, the rate was still at 6.750%. Frankie requested an extension of escrow to allow more time for rates to drop. The seller declined. His loan closed at 6.750%. He was bummed but understood he took a gamble that didn't pay off.

When rates reached their historic lows, I immediately thought of Frankie and Janie. I called them and told them about the FHA Streamline Refinance. No appraisal. No credit report. No income or asset documentation. Low fees. A loan that can be closed in a few weeks and lowers your payment. It's about the easiest loan there is today.

Frankie locked at 5.000% for 30 years and saved $263 per month!! After he closed last week he called me and said, "I told you they were coming down!!!"

I can’t remember the last time I laughed that hard. He is certainly right. Rates are about as low as they are going to get. Lock when you can.