Fremont Real Estate Blog

Twice now we've seen the Fed lower the rate they charge banks to borrow from them, and what happens....not what most would expect.  Instead of causing home mortgage rates to come down, it caused them to go up each time. Why?One can guess that the cost of funds for long term fixed rates has gone up because of future inflationary pressure expected to be created by having access to cheap money now on short term credit, which is what the lowering of the discount rate does, because it's directly tied to the Prime Rate charged by Banks. The prime rate today is at 4%. That's historically low .  So as a borrower interested in refinancing an ARM coming due, what should you do?  My advice given the volatility is get yourself pre-approved and lock when the rates improves.  There's no guarantee they ever will but seeing them jump up and down the last 3 weeks chaotically , I expect the same to happen because everyone is still scared. 

the national association has posted a nice summary of how the $7500 tax credit passed by Housing and Economic Recovery Act (H.R. 3221) on July 30, 2008. At the bottow you'll ind a summary chart and FAQ.

Debt Relief Income Exempt from California State Income Tax: This will be welcome relief for those taxpayers who had relief of debt in 2007 & 2008. If you've already filed your tax return, there are options to file an amended return. Given that the federal provisions were recently extended to 2012, California legislatures are being short sighted, and creating unnecessary anxiety for taxpayers who will be recognizing relief of debt from 2009 to 2012. Details on Senate Bill 1055 summary: The California mortgage forgiveness debt relief law is effective immediately. It is similar to federal law, but with important differences. The California law covers qualified debt forgiven in 2007 and 2008, and it: Limits the amount of qualified principal residence indebtedness to $800,000 for taxpayers who file as married/registered domestic partners ( RDP ) filing jointly, single, head of household, or widow/widower, and to $400,000 for taxpayers who file as married/ RDP filing separately. Lim

Stupid banks. What were they thinking? take a look at what this borrower did with the help of these stupid banks hungry to sell crap to Greed Wall Street Bankers. It’s simply ludicrous the bank approved these loans. Property History Mortgage Record Recording Date 09/07/2006 Document # Loan Amount: $232,860 Loan Type Credit Line (Revolving) TD Due Date Type of Financing VAR Lender Name WASHINGTON MUTUAL BANK Buyer Vesting Joint Tenancy Lender Type Bank Vesting Joint Tenancy Borrowers Name Mortgage Record Recording Date 09/07/2006 Document # Loan Amount: $1,000,000 Loan Type J TD Due Date 09/01/2036 IR:7.09% Type of Financing ADJ Lender Name WASHINGTON MUTUAL BANK FA Buyer Vesting Joint Tenancy Lender Type Bank Vesting Joint Tenancy Borrowers Name Mortgage Record Recording Date 01/27/2006 Document # Loan Amount: $184,100 Loan Type Credit Line (Revolving) TD Due Date 02/15/2021 Type of Financing Lender Name GREENPOINT MORTGAGE FUNDING INC Buyer Vesting N/A Lender Type Mortgage

October 2, 2008 ****** Conforming Jumbo CHANGE 12/1/08 ****** We know the conforming jumbo limit was going to change on 1/1/09 to $625,500, however just recently I've learned from some banks that the last day to close a loan for $729,750 is on 12/1/08 (for other banks the last day will be in mid-November). What this means is that if your loan is greater than $625,500 and you can't reduce it to this amount, you have to act fast to refinance that loan into a 30 year fixed. Loans are taking about 30 days to close right now, so you'd have to have a complete ready to submit to the lender by October 31 at the lastest. Here some pricing scenarios: Scenario 1 : $729,750 loan amount, Loan to Value 80%, FICO 700, on a no-closing cost 30 yr fixed: Rate 7.250% APR 7.250% Scenario 2: $729,750 loan amount, Loan to Value 75%, FICO 720, on a no-closing cost 30 yr fixed: Rate 6.500% APR 6.500% Scenario 3: $729,750 loan amount, Loan to Value 60%, FICO 700, on a no-closing cost 30 yr fixed:

I was checking out, Toyota's September vehicle sales and it just pisses me off that there still are people in America with no regard to the environment or our energy crisis. Why are people still buying any luxury gas-guzzling, air polluting vehicles. Why doesn’t Congress do the right thing and say no more luxury gas-guzzling, air polluting vehicles? 10/01/2008 - Toyota Reports September Sales

I received this information from a lender regarding the HOPE Mortgage Program. It doesn't look that promising but I would definitely investigate it. If you are interested in finding out more you have to contact your lender’s customer service department. Please share your experiences here. -sunil Housing Finance Reform Title IV HOPE FOR HOMEOWNERS Creation of a new FHA Loan Program “HOPE FOR HOMEOWNERS PROGRAM” (aka FHA Rescue): (Page 394) · The purpose of the Program it so insure refinanced loans for distressed Borrowers; allowing owner occupant homeowners to avoid foreclosure by reducing their principal outstanding balance and their current interest rate; ( think of a short sell refinance ) . I am not aware of any Lenders that will pay an origination fee, when they are taking a significant loss of the loan to start. Lost principal that will be absorbed by the bank, possibly the Federal government if that comes out of our latest housing Bill on the floor. Not likely. · The Bill a