Mortgage Interest Rates - All-time Low's!

It is shocking to me how low interest rates have been going lately.  The one thing that amazes me is the fact that internet mortgage companies advertise even lower rates.  Why is that?  Well, honestly, to get you to call them......Then when they have you on the phone, for some reason or another, the interest rate goes up because, oh, you have to have a loan-to-value ratio of 60% or  below, your FICO score has to be 780 or above, and you have to have impound accounts whether you want them or not.  Oh, and also you must have a loan amount above $300K........kinda like that commercial where the lady goes into buy something from a clothing store and the clerk offers her a discount card and all of a sudden this man shows up and states all these conditions she must meet to get the discount, so she just hands back the discount offer.......typical.  Makes me sick!  Oh well, what can you do?

For the best rates on mortgages, call me, 661.964.2600
Jeff Eisenberg
Broker
Southern Oaks Mortgage, Inc.
jeff@somloans.com
http://www.somloans.com/
http://www.loanmanjeff.com/

Southern Oaks Mortgage's New Webpage (New and Improved!)

Check out our new and improved site:  http://www.somloans.com/
would love to hear your feedback.

Thanks,
Jeff Eisenberg
President
jeff@somloans.com
http://www.loanmanjeff.com/

What are you looking for?

This is a great question.  As you know, I now offer my "Jeff Eisenberg's 6-minute right to the point video series" and would like to know what topics you'd be interested in hearing about.  Some examples would be: Living Trusts; Health Insurance; Short Sales and Foreclosures; What to look for in an investment advisor; Natural and Organic Herbs and Vitamins: How do they help you?; and much more....just say the word and I will interview an expert in that field and put it on YouTube for your enjoyment.  And best of all, it's only 6 minutes and will give you direct contact information to ask more questions directly with the expert.

Please respond and let me know your topics...

Jeff Eisenberg
Broker
Southern Oaks Mortgage, Inc.
jeff@somloans.com
http://www.somloans.com/
http://www.loanmanjeff.com/

Crazy Day of Trading

Yesterday, if you aren't aware of how volatile the market was, a big error occurred.  Someone pushed the wrong button on a sell order and the market just went haywire.  The fixed it, but boy, what a ride.  Today, we are currently down 3 basis points for the day, but were much higher this morning.  There was an alert to lock today, however, if you aren't closing escrow in the next to weeks or so, floating may prove to be the best option.

Your Eyes, Ears and Voice in Mortgage Finance,

Jeff Eisenberg
http://www.somloans.com/
http://www.loanmanjeff.com/
jeff@somloans.com
661.964.2600

Loan Modifications and the ramifications to your credit

Below is a link to an article that explains how a loan modification will effect your credit scores.  Very Interesting.


Loan Modifications & Credit - It’s All In The Code

Posted using ShareThis

Jeff Eisenberg
Broker/Owner
Southern Oaks Mortgage
http://www.somloans.com/
http://www.loanmanjeff.com/

Assembly Bill No. 183 - California Tax Credit $10,000 for First-Time Buyers

This information is taken right from the California State Franchise Tax Board or this link:  http://www.ftb.ca.gov/individuals/New_Home_Credit.shtmlGeneral

Information: These tax credits are available for taxpayers who purchase a qualified principal residence on or after May 1, 2010, and before January 1, 2011. Additionally, these tax credits are available for taxpayers who purchase a qualified principal residence on or after December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010. The purchase date is defined as the date escrow closes. Taxpayers may apply for the tax credits if they have entered into a contract before May 1, 2010, as long as escrow closes on or after May 1, 2010.


These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are nonrefundable and unused credits cannot be carried over.

The total amount of allocated tax credit for all taxpayers may not exceed $100 million for the New Home Credit and $100 million for the First-Time Buyer Credit. However, since many taxpayers will not be able to utilize the entire tax credit, the legislation specifies that the $100 million cap for the New Home Credit will be reduced by 70 percent of the tax credit allocated to each buyer and the $100 million cap for the First-Time Buyer Credit will be reduced by 57 percent of the tax credit allocated to each buyer. For example, if a taxpayer is allocated $10,000 for the New Home Credit, the $100 million cap for the New Home Credit will only be reduced by $7,000. If a taxpayer is allocated $10,000 for the First-Time Buyer Credit, the $100 million cap for the First-Time Buyer Credit will only be reduced by $5,700. The 70 and 57 percent reductions do not impact the amount that can be claimed by the taxpayer.

We will allocate the tax credits on a first-come, first-served basis.

Only one tax credit is allowed per taxpayer. If a taxpayer qualifies for both tax credits, the law specifies that we will allocate the amount under the New Home Credit.

Taxpayers will not be eligible for either tax credit if any of the following apply:

The taxpayer was allowed a 2009 New Home Credit.

The taxpayer is under 18 years old. (A taxpayer who is married as of the date of purchase will be considered to be 18 if the spouse/registered domestic partner (RDP) of the taxpayer is 18 or older on the date of purchase.)

The taxpayer or the taxpayer’s spouse/RDP is related to the seller.

The taxpayer qualifies as a dependent of any other taxpayer for the tax year of the purchase.

New Home Credit: A qualified principal residence, for purposes of the New Home Credit, must:

Be a single family residence, either detached or attached. This can be a single family residence, a condominium, a unit in a cooperative project, a house boat, a manufactured home, or a mobile home. A home constructed by the taxpayer is not eligible since the home has not been "purchased."

Have never been occupied. Sellers must certify that the home has never been occupied in order for a taxpayer to receive an allocation of the credit.

Be eligible for the California property tax homeowner’s exemption.

Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.

Tax credit allocation:

A Certificate of Allocation will not be issued if:

The seller does not certify the home has never been occupied.

We do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow.

We receive the application or reservation request after the total tax credits available have been allocated.

FTB's determination may not be protested or appealed.

First-Time Buyer Credit: A qualified principal residence, for purposes of the First-Time Buyer Credit, must:

Be a single family residence, either detached or attached. This can be a single family residence, a condominium, a unit in a cooperative project, a house boat, a manufactured home, or a mobile home. A home constructed by the taxpayer is not eligible since the home has not been "purchased."

Be eligible for the California property tax homeowner’s exemption.

Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.

A first-time buyer is any individual (and the individual’s spouse/RDP, if married on the date of purchase) who did not have an ownership interest in a principal residence, either in or out of California, during the preceding 3 year period ending on the date of the purchase of the qualified principal residence. If the buyer is married on the date of purchase and either the buyer or the buyer's spouse/RDP had an ownership interest in a principal residence during the preceding 3 year period, the buyer does not qualify for the First-Time Buyer Credit even if the spouse/RDP is not going to be on title.

Tax credit allocation:

A Certificate of Allocation will not be issued if:

We do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow.

We receive the application after the total tax credits available have been allocated.

FTB's determination may not be protested or appealed.

Applications: We will accept applications by fax only beginning May 1, 2010. Do not use the 2009 application. We will post more information by May 1, 2010.

Reservations: Taxpayers who qualify for the New Home Credit may, but are not required to, reserve a tax credit prior to the close of escrow. Reservations will become important as we near the $100 million cap for homes that may not close escrow before the cap is reached, as a reservation will "hold the taxpayer's place in line" until 2 weeks after escrow closes. To reserve a tax credit, the taxpayer and seller need to complete, sign, and fax to us a reservation request to certify that they have entered into an enforceable contract on or after May 1, 2010, and on or before December 31, 2010. A copy of the signed contract must be included with the reservation request. Taxpayers who reserve a tax credit still need to fax an application and a copy of the settlement statement within 2 weeks after the close of escrow. Taxpayers may not reserve a tax credit if the contract was entered into before May 1, 2010. We will post the reservation form and details about the process by May 1, 2010.

If you are only applying for the First-Time Buyer Credit, you will not be able to reserve the tax credit before escrow closes.

Claiming the tax credit:

The taxpayer must receive a Certificate of Allocation from us to claim the tax credit on their California personal income tax return. The Certificate of Allocation will state the maximum amount the taxpayer can claim listed by tax year.

The taxpayer should refer to the 2010 New Home / First-Time Buyer Credit Publication for instructions on claiming the tax credit (the publication will be available by December, 2010).

Special rules apply to married/RDP taxpayers filing separately, in which case each spouse/RDP is entitled to one-half of the tax credit, even if their ownership percentages are not equal. For 2 or more taxpayers who are not married/RDP, the tax credit amount will have already been allocated to each taxpayer occupying the residence on their respective tax credit allocation letter.

If the available tax credit exceeds the current year net tax, the unused tax credit may not be carried over to the following tax year.

The tax credit may not reduce regular tax below TMT.

The tax credit is not refundable.

Any disallowance of the tax credit may not be protested or appealed.
 
For more information, please email me at jeff@somloans.com
http://www.somloans.com/
http://www.loanmanjeff.com/

Interesting information regarding our economy and interest rates!

Thought this page in the paper was an interesting read!

---

The Signal
03 Apr 2010
From Jeff Eisenberg

Your Eyes, Ears & Voice in Real Estate Finance.

jeff@somloans.com

www.somloans.com

www.loanmanjeff.com

Short Pays!

Short pays can be a nightmare.  I just had a client who bought a short pay from a well known "Big Bank" and this is what happened......  The listing agent got the approval from the bank and this particular home had two loans, a 1st and a 2nd.  The approvals for both were sent over in an email to the agent, but the agent didn't see that the 2nd approval was right behind the 1st approval, so escrow has been trying to get this bank to send something in writing to show that the 2nd was approved as well.  The bank was tellling her that it would take 2 days to get an approval and 2 days to get it in writing.  We were already approaching the close date.  Finally, after much research, the bank said that the approval on the 2nd was sent weeks ago with the 1st approval.....My point here is that agents, escrow and the banks need to review all pages of items sent to them before creating havoc.  The agent should have noticed that approval on the 2nd in the first email, the bank should have known that it was in that email and we would have all been in a better place.  Nothing is worse than scrambling around trying to get things rushed the day or two before close of escrow.  So all I have to say is communication, communication, communication.......It would make all our lives so much easier!  One more tip for this banks is that they should have one contact person that handles everything regarding each property.  Instead, they have many folks getting involved and the more involved, the less each seems to know.....

The New Good Faith Estimate for 2010!

Okay, our wonderful Government just instituted a new Good Faith Estimate that all brokers and banks have to begin using as of 1/1/2010.  This estimate is supposed to help take any confusion out of the consumers mind and help them better compare one lender with another.  Hmmmm!  Not so sure that it will work.  Basically it lumps all the fees into one and holds the broker or lender to tolerance levels.  If the fees are more than 10% of what was quoted, the broker/lender will have to eat it.  They are making us quote fees that we have no control over, like escrow, title, etc., but we are still liably.  Okay, so this is what our government wants.  We also were told not to issue a good faith estimate unless we have all six of the following items:  borrower name, social security, loan amount, property address, income and value of the property.  So don't expect to get a written good faith estimate if you are just looking for a pre-approval without a property.  We can tell you or give you something in writing that will give you a rough estimate of the closing costs, but we can't give you an actual good faith until all 6 of those items have been given.

2010 looks to be an interesting year for the mortgage industry.  Loans may take a bit longer at closing because escrow companies are required to rectify any tolerances over that 10% mark and that could delay closing.  For more information on this topic, please contact me at 661.964.2600 or email me at jeff@somloan.com.

Jeff Eisenberg
Southern Oaks Mortgage, Inc.
http://www.somloans.com/
http://www.loanmanjeff.com/
www.twitter.com/loanmanjeff

My latest 6 minute right to the point video - With Bill Clingen

Please click on the link below to watch my 6 minute video with Bill Clingen, an Asset Protection Advisor who talks about life insurance.

http://www.youtube.com/watch?v=PtNUnAZj940

Stay tuned for next month's video, there will be an exciting topic, I promise!

Jeff Eisenberg
Southern Oaks Mortgage, Inc.
http://www.somloans.com/
http://www.loanmanjeff.com/
www.twitter.com/loanmanjeff