March 2009 Archives

The new consumer article for today is Rental Fraud, Landlord Fraud, and Prospective Tenant Scams. As with everything else out there concerning larger amounts of money, there are rental frauds that renters need to be concerned about, more and more as things like online ads take over from more traditional alternatives of newspapers and rental agencies. To be fair, most of the online venues do as much as they reasonably can about fraud, but they can't do enough to prevent it; they can only ban the fraudster after the fact (and the fraudster can then get a new account). You need to be careful out there.

Once per month, I link the best articles that are submitted containing information for the consumer. March's Consumer Focused Carnival of Real Estate is now live.


Newly Written Articles

Buyers: Stretching Your Budget Means Compromise talks about how to make your dollars go further, and the thin line between "challenging" and "not going to happen"

What Are The Note And Trust Deed And What Is The Difference? This is a basic article on these two loan documents of very different function.

The Home Valuation Code of Conduct (New Appraisal Standards) discusses the effects that the new appraisal standards will have on the loan market after May 1. I have been informed that NAMB, the National Association of Mortgage Brokers, has filed suit to prevent it from becoming effective. On behalf of consumers and loan officers nationwide, here's hoping they are successful.


Updated Articles

One Spouse Qualifying For A Loan on Their Own

My Loan was Denied - What Fees Can I Recover?

Issues with Relocation Loans

Finally, I have just re-done The Tradeoff between Rate and Cost in Real Estate Loans. This is such a critical article that it really belongs in a category out by itself. You cannot understand real estate loans until you understand the subject matter of this article. Read it. Understand it. Remember it. Every interaction you have with a loan provider should center about this trade-off.


These are newly listed HOMESTEPS properties from Freddie Mac for the areas I work. These properties qualify for special financing.

I also have a list of upcoming HOMESTEPS properties not on the market yet

If you have questions, Contact me

La Mesa

Address: 4800 WILLIAMSBURG LN 223, LA MESA, CA
Rooms: 5 Bed: 3 Bath: 2.0 Price: 185,500.00

Address: 4985 WILLIAMS AVE, LA MESA, CA
Rooms: 5 Bed: 3 Bath: 2.0 Price: 241,150.00

Address: 3920 MASSACHUSETTS AVE, LA MESA, CA
Rooms: 5 Bed: 2 Bath: 1.0 Price: 279,900.00

Address: 5714 BALTIMORE DRIVE 505, LA MESA, CA
Rooms: 3 Bed: 1 Bath: 1.0 Price: 129,850.00

El Cajon

Address: 589 NORTH JOHNSON AVENUE 230, EL CAJON, CA
Rooms: 3 Bed: 1 Bath: 1.0 Price: 66,500.00

Address: 589 NORTH JOHNSON AVENUE UNIT, EL CAJON, CA
Rooms: 5 Bed: 2 Bath: 2.0 Price: 87,450.00

Address: 652 SKYVIEW STREET, EL CAJON, CA
Rooms: 4 Bed: 3 Bath: 1.0 Price: 201,400.00

Address: 587 DOWNER AVENUE, EL CAJON, CA
Rooms: 6 Bed: 3 Bath: 2.0 Price: 265,000.00

Address: 1266 FINCH STREEET, EL CAJON, CA
Rooms: 8 Bed: 4 Bath: 1.5 Price: 337,500.00

Address: 1423 GRAVES AVENUE 129, EL CAJON, CA
Rooms: 3 Bed: 1 Bath: 1.0 Price: 87,500.00

Address: 1272 PERSIMMON AVENUE 1, EL CAJON, CA
Rooms: 5 Bed: 3 Bath: 2.5 Price: 189,900.00

Lakeside

Address: 9719 WINTER GARDENS BLVD 159, LAKESIDE, CA
Rooms: 4 Bed: 1 Bath: 1.0 Price: 48,900.00

Address: 12616 LAKESHORE DRIVE 50, LAKESIDE, CA
Rooms: 5 Bed: 2 Bath: 2.0 Price: 93,015.00

Address: 11035 OAK CREEK DR, LAKESIDE, CA
Rooms: 4 Bed: 2 Bath: 1.0 Price: 164,300.00

Santee

Address: 10160 PALM GLEN DR 44, SANTEE, CA
Rooms: 4 Bed: 2 Bath: 2.0 Price: 143,100.00

Address: 10533 KERRIGAN CT, SANTEE, CA
Rooms: 6 Bed: 3 Bath: 1.5 Price: 196,100.00

Address: 9139 FANITA RANCHO ROAD, SANTEE, CA
Rooms: 5 Bed: 3 Bath: 1.0 Price: 206,700.00

Address: 10507 FLORA AZALEA COURT, SANTEE, CA
Rooms: 5 Bed: 3 Bath: 2.0 Price: 332,500.00

San Diego City

Address: 5252 ORANGE AVE 332, SAN DIEGO, CA
Rooms: 3 Bed: 1 Bath: 1.0 Price: 66,500.00

Address: 4323 51ST ST, SAN DIEGO, CA
Rooms: 5 Bed: 2 Bath: 2.0 Price: 176,000.00

Dan Melson, Agent
Clarity Real Estate Network
619-300-7425

The new consumer article for today is The Home Valuation Code of Conduct (New Appraisal Standards) that are going to be taking effect (appropriately enough) on May 1 ("May Day" or "MAYDAY"). It is going to be almost impossible for anyone to hold appraisers accountable for bad valuations.

There will be nothing your loan officer or anyone else can do about the appraiser who gets it wrong and spikes your transaction while wasting your money except complain to your representatives in Congress until they actually fix the problem instead of metaphorically amputating someone's arm in order to treat a twisted ankle.

The Best Loans Right NOW

(based upon "real people credit", not absolutely perfect credit)

Conforming Rates

Thirty Year Fixed Rate Loans

4.625% 30 Year fixed rate loan, with only one point (that's a total discount and origination) to the consumer and NO PREPAYMENT PENALTIES!. Assuming a $400,000 loan, Payment $2057, APR 4.751! This is a thirty year fixed rate loan. The payment and interest rate will stay the same on this loan until it is paid off! 30 year fixed rate loans as low as 4.125 percent (But you'd have to be crazy to pay that many points!)

5/1 Hybrid ARM Rates

5/1 ARMs have now fallen to levels below 30 year fixed by about half a percent!

4.125% 5/1 ARM, with only one point (that's a total discount and origination) to the consumer and NO PREPAYMENT PENALTIES!. Assuming a $400,000 loan, Payment $1939, APR 4.247! This is a fully amortized thirty year loan with the interest rate fixed for five years. 5/1 ARM rates as low as 3.875 percent (But you'd have to be crazy to pay that many points!)

Super-Conforming Rates

($417,001 to $546,250 in San Diego)

4.875% 30 Year fixed rate loan, with one point (total discount and origination) to the consumer and NO PREPAYMENT PENALTIES!. Assuming a $500,000 loan, Payment $2646, APR 5.002! This is a thirty year fixed rate loan. The payment and interest rate will stay the same on this loan until it is paid off! 30 year fixed rate loans as low as 4.375 percent (But you'd have to be crazy to pay that many points!)

VA Rates

5.00% 30 Year fixed rate loan, with NO points (total discount and origination) from the lender to the consumer and NO PREPAYMENT PENALTIES (Standard Veterans Administration government generated charges to borrowers apply)!. Assuming a $400,000 loan, Payment $2147, APR 5.129! This is a thirty year fixed rate loan. The payment and interest rate will stay the same on this loan until it is paid off! 30 year fixed rate VA loans as low as 4.5 percent (But you'd have to be crazy to pay that many points!)

NONCONFORMING ("JUMBO") RATES

These numbers assume a 70% loan to value ratio, not 80.

Thirty Year Fixed Rate Loans

6.125% "Jumbo" 30 Year fixed rate loan, with ONE point total discount and origination, and NO PREPAYMENT PENALTIES!. Assuming a $700,000 loan, Payment $4253, APR 6.254! This is a thirty year fixed rate loan. The payment and interest rate will stay the same on this loan until it is paid off! Jumbo 30 year fixed rate loans as low as 4.875 percent (But you'd have to be crazy to pay that many points!)

5/1 Hybrid ARM Rates

JUMBO 5/1s are more than a full percent lower than 30 year fixed

4.75% "Jumbo" 5/1 ARM, with one point total discount and origination, and NO PREPAYMENT PENALTIES!. Assuming a $700,000 loan, Payment $3652, APR 4.869! This is a fully amortized thirty year loan with the interest rate fixed for five years. 5/1 Jumbo ARMs as low as 3.625 percent (But you'd have to be crazy to pay that many points!) On the hypothetical $700,000 loan, this saves over $800 per month in cost of interest!

All rates above are intended for San Diego County today, and include a 30 day lock. Loan prices will vary every day. Loan pricing in the rest of California will be similar. Conforming loan pricing will be similar between about $150,000 and the conforming limit in your area. Nonconforming loan pricing will be similar from the conforming limit up to about $1 million dollars in loan amount.

10 year interest only payments available on 30 year fixed rate loans!

Great Rates on super-jumbo loans also available!

Zero closing costs and zero points loans also available!

Portfolio lenders! Need something special most lenders can't do? Portfolio lenders may be the key! I have portfolio lenders!

Yes, I still have low to zero down payment and some stated income programs available!

These are actual retail rates at actual costs available to real people with average credit scores! I always guarantee the loan type, rate, and total cost as soon as I have enough information from you to lock the loan (subject to underwriting approval of the loan). I pay any difference, not you. If your loan provider doesn't do this, you need a new loan provider!

All of the above loans are on approved credit, not all borrowers will qualify, based upon an 80% loan to value and a median credit score on a full documentation loan. Rates subject to change until rate lock.

Interest only, stated income, bad credit and other options also available. If you need a mortgage, chances are I can do it faster and on better terms than you'll actually get from anyone else in the business.

Designing transactions for low to zero down payment a specialty

Please ask me about first time buyer programs, including the Mortgage Credit Certificate, which gives you a tax credit for mortgage interest, and can be combined with any of the above loans!

Call me. Clarion Mortgage Capital at 619-300-7425, ask for Dan. Or email me: danmelson (at) danmelson (dot) com

The new consumer article for today is What Are The Note And Trust Deed And What Is The Difference?. This is a basic article on the differences and relationship between the two documents; one that documents the debt and one that creates the security interest.

The new consumer article for today is Buyers: Stretching Your Budget Means Compromise. It's something too rarely covered by the press, and by real estate agents. There are tradeoffs in every choice a buyer makes, and unless they have a potentially unlimited budget, buyers have to make choices as to whether this or that is more important to them.


These are newly listed HOMESTEPS properties from Freddie Mac for the areas I work. These properties qualify for special financing.

I also have a list of upcoming HOMESTEPS properties not on the market yet

This week I'm at least getting it posted "day of". I still owe you folks at least a "Real Loans for Real People". I am busier than the proverbial one armed paper-hanger right now, and while that's a good thing...

If you have questions, Contact me

La Mesa

Address: 4800 WILLIAMSBURG LN 223, LA MESA, CA
Rooms: 5 Bed: 3 Bath: 2.0 Price: 185,500.00

Address: 4985 WILLIAMS AVE, LA MESA, CA
Rooms: 5 Bed: 3 Bath: 2.0 Price: 241,150.00

Address: 3920 MASSACHUSETTS AVE, LA MESA, CA
Rooms: 5 Bed: 2 Bath: 1.0 Price: 279,900.00

Address: 5714 BALTIMORE DRIVE 505, LA MESA, CA
Rooms: 3 Bed: 1 Bath: 1.0 Price: 129,850.00

El Cajon

Address: 589 NORTH JOHNSON AVENUE 230, EL CAJON, CA
Rooms: 3 Bed: 1 Bath: 1.0 Price: 66,500.00

Address: 589 NORTH JOHNSON AVENUE UNIT, EL CAJON, CA
Rooms: 5 Bed: 2 Bath: 2.0 Price: 87,450.00

Address: 652 SKYVIEW STREET, EL CAJON, CA
Rooms: 4 Bed: 3 Bath: 1.0 Price: 201,400.00

Address: 587 DOWNER AVENUE, EL CAJON, CA
Rooms: 6 Bed: 3 Bath: 2.0 Price: 265,000.00

Address: 1266 FINCH STREEET, EL CAJON, CA
Rooms: 8 Bed: 4 Bath: 1.5 Price: 337,500.00

Address: 1423 GRAVES AVENUE 129, EL CAJON, CA
Rooms: 3 Bed: 1 Bath: 1.0 Price: 87,500.00

Address: 1272 PERSIMMON AVENUE 1, EL CAJON, CA
Rooms: 5 Bed: 3 Bath: 2.5 Price: 189,900.00

Lakeside

Address: 9719 WINTER GARDENS BLVD 159, LAKESIDE, CA
Rooms: 4 Bed: 1 Bath: 1.0 Price: 48,900.00

Address: 12616 LAKESHORE DRIVE 50, LAKESIDE, CA
Rooms: 5 Bed: 2 Bath: 2.0 Price: 93,015.00

Address: 11035 OAK CREEK DR, LAKESIDE, CA
Rooms: 4 Bed: 2 Bath: 1.0 Price: 164,300.00

Address: 13106 LAUREL ST, LAKESIDE, CA
Rooms: 7 Bed: 3 Bath: 2.0 Price: 294,900.00

Santee

Address: 10160 PALM GLEN DR 44, SANTEE, CA
Rooms: 4 Bed: 2 Bath: 2.0 Price: 143,100.00

Address: 10533 KERRIGAN CT, SANTEE, CA
Rooms: 6 Bed: 3 Bath: 1.5 Price: 196,100.00

Address: 9139 FANITA RANCHO ROAD, SANTEE, CA
Rooms: 5 Bed: 3 Bath: 1.0 Price: 206,700.00

Address: 10507 FLORA AZALEA COURT, SANTEE, CA
Rooms: 5 Bed: 3 Bath: 2.0 Price: 332,500.00

San Diego City

Address: 5252 ORANGE AVE 332, SAN DIEGO, CA
Rooms: 3 Bed: 1 Bath: 1.0 Price: 66,500.00

Address: 4570 54TH UNIT 116, SAN DIEGO, CA
Rooms: 5 Bed: 1 Bath: 1.0 Price: 114,500.00

Address: 4323 51ST ST, SAN DIEGO, CA
Rooms: 5 Bed: 2 Bath: 2.0 Price: 176,000.00

Address: 4322 52ND STREET, SAN DIEGO, CA
Rooms: 6 Bed: 3 Bath: 2.0 Price: 188,150.00

Dan Melson, Agent
Clarity Real Estate Network
619-300-7425

The new consumer article for today is Top Twelve Things That Help You Buy a Bargain Property. If you're looking to buy a good property at a bargain price, put as many of these on your side as possible.

The new consumer article for today is Loan Fall-Out And The Effects Upon Consumers. The days when loan officers are willing to lock loans with just a social and the identity of the property are ending, if not already over. Loan officers are facing consequences for a low ratio of funded loans, consequences that range from all of their clients paying higher loan rates to being fired or having their broker relationship terminated. The ones that don't understand this and take appropriate steps are going to be out of the industry.

The new consumer article for today is Online Real Estate Photographs. I know why people want to see online photographs, but I don't understand why they obsess about them to the degree they do, even after they assure me that they're aware of the existence of Photoshop. Hundreds of thousands of dollars are at stake. People lie, cheat, steal, commit felonies and risk jail to sell real estate for a higher price - on that scale, the minor dishonesty of doctoring photos just doesn't register.

The new consumer article for today is The Difference Between a Reliable and Unreliable Prequalification or Preapproval Letter. Whether you're a buyer or a seller, having the right lender letter is a good thing. If you're a seller, you know exactly how strong this buyer is. If you're a buyer, both you and the seller know how qualified you are. In both cases, this knowledge is a good thing.

The Best Loans Right NOW

(based upon "real people credit", not absolutely perfect credit)

Conforming Rates

Thirty Year Fixed Rate Loans

4.875% 30 Year fixed rate loan, with only one point (that's a total discount and origination) to the consumer and NO PREPAYMENT PENALTIES!. Assuming a $400,000 loan, Payment $2117, APR 5.003! This is a thirty year fixed rate loan. The payment and interest rate will stay the same on this loan until it is paid off! 30 year fixed rate loans as low as 4.375 percent (But you'd have to be crazy to pay that many points!)

5/1 Hybrid ARM Rates

5/1 ARMs have now fallen to levels below 30 year fixed

4.5% 30 Year fixed rate loan, with only one point (that's a total discount and origination) to the consumer and NO PREPAYMENT PENALTIES!. Assuming a $400,000 loan, Payment $2027, APR 4.625! This is a fully amortized thirty year loan with the interest rate fixed for five years. 5/1 ARM rates as low as 4.00 percent (But you'd have to be crazy to pay that many points!)

Super-Conforming Rates

($417,001 to $546,250 in San Diego)

5.00% 30 Year fixed rate loan, with one point (total discount and origination) to the consumer and NO PREPAYMENT PENALTIES!. Assuming a $500,000 loan, Payment $2684, APR 5.128! This is a thirty year fixed rate loan. The payment and interest rate will stay the same on this loan until it is paid off! 30 year fixed rate loans as low as 4.375 percent (But you'd have to be crazy to pay that many points!)

VA Rates

4.875% 30 Year fixed rate loan, with only one point (total discount and origination) from the lender to the consumer and NO PREPAYMENT PENALTIES (Standard Veterans Administration government generated charges to borrowers apply)!. Assuming a $400,000 loan, Payment $2117, APR 5.003! This is a thirty year fixed rate loan. The payment and interest rate will stay the same on this loan until it is paid off! 30 year fixed rate VA loans as low as 4.5 percent (But you'd have to be crazy to pay that many points!)

NONCONFORMING ("JUMBO") RATES

These numbers assume a 70% loan to value ratio, not 80.

Thirty Year Fixed Rate Loans

6.125% "Jumbo" 30 Year fixed rate loan, with ONE point total discount and origination, and NO PREPAYMENT PENALTIES!. Assuming a $700,000 loan, Payment $4253, APR 6.254! This is a thirty year fixed rate loan. The payment and interest rate will stay the same on this loan until it is paid off! Jumbo 30 year fixed rate loans as low as 5.75 percent (But you'd have to be crazy to pay that many points!)

5/1 Hybrid ARM Rates

JUMBO 5/1s are more than a full percent lower than 30 year fixed

5.00% "Jumbo" 5/1 ARM, with one point total discount and origination, and NO PREPAYMENT PENALTIES!. Assuming a $700,000 loan, Payment $3757, APR 5.121! This is a fully amortized thirty year loan with the interest rate fixed for five years. 5/1 Jumbo ARMs as low as 3.75 percent (But you'd have to be crazy to pay that many points!)

All rates above are intended for San Diego County today, and include a 30 day lock. Loan prices will vary every day. Loan pricing in the rest of California will be similar. Conforming loan pricing will be similar between about $150,000 and the conforming limit in your area. Nonconforming loan pricing will be similar from the conforming limit up to about $1 million dollars in loan amount.

10 year interest only payments available on 30 year fixed rate loans!

Great Rates on super-jumbo loans also available!

Zero closing costs and zero points loans also available!

Portfolio lenders! Need something special most lenders can't do? Portfolio lenders may be the key! I have portfolio lenders!

Yes, I still have low to zero down payment and some stated income programs available!

These are actual retail rates at actual costs available to real people with average credit scores! I always guarantee the loan type, rate, and total cost as soon as I have enough information from you to lock the loan (subject to underwriting approval of the loan). I pay any difference, not you. If your loan provider doesn't do this, you need a new loan provider!

All of the above loans are on approved credit, not all borrowers will qualify, based upon an 80% loan to value and a median credit score on a full documentation loan. Rates subject to change until rate lock.

Interest only, stated income, bad credit and other options also available. If you need a mortgage, chances are I can do it faster and on better terms than you'll actually get from anyone else in the business.

Designing transactions for low to zero down payment a specialty

Please ask me about first time buyer programs, including the Mortgage Credit Certificate, which gives you a tax credit for mortgage interest, and can be combined with any of the above loans!

Call me. Clarion Mortgage Capital at 619-300-7425, ask for Dan. Or email me: danmelson (at) danmelson (dot) com


These are newly listed HOMESTEPS properties from Freddie Mac for the areas I work. These properties qualify for special financing.

I also have a list of upcoming HOMESTEPS properties not on the market yet

Sorry it's three days behind the power curve.

If you have questions, Contact me

La Mesa

Address: 4985 WILLIAMS AVE, LA MESA, CA
Rooms: 5 Bed: 3 Bath: 2.0 Price: 241,150.00

Address: 3920 MASSACHUSETTS AVE, LA MESA, CA
Rooms: 5 Bed: 2 Bath: 1.0 Price: 279,900.00

Address: 6970 ALAMO WAY, LA MESA, CA
Rooms: 5 Bed: 3 Bath: 2.0 Price: 307,000.00

Address: 5714 BALTIMORE DRIVE 505, LA MESA, CA
Rooms: 3 Bed: 1 Bath: 1.0 Price: 129,850.00

El Cajon

Address: 589 NORTH JOHNSON AVENUE 230, EL CAJON, CA
Rooms: 3 Bed: 1 Bath: 1.0 Price: 66,500.00

Address: 228 ROANOKE ROAD, EL CAJON, CA
Rooms: 4 Bed: 2 Bath: 2.0 Price: 89,900.00

Address: 174 CHAMBERS STREET 11, EL CAJON, CA
Rooms: 4 Bed: 2 Bath: 2.0 Price: 111,300.00

Address: 652 SKYVIEW STREET, EL CAJON, CA
Rooms: 4 Bed: 3 Bath: 1.0 Price: 201,400.00

Address: 587 DOWNER AVENUE, EL CAJON, CA
Rooms: 6 Bed: 3 Bath: 2.0 Price: 265,000.00

Address: 1266 FINCH STREEET, EL CAJON, CA
Rooms: 8 Bed: 4 Bath: 1.5 Price: 337,500.00

Address: 1423 GRAVES AVENUE 129, EL CAJON, CA
Rooms: 3 Bed: 1 Bath: 1.0 Price: 87,500.00

Address: 1723 SUMMERTIME DRIVE, EL CAJON, CA
Rooms: 5 Bed: 3 Bath: 1.0 Price: 112,900.00

Address: 1526 STONE EDGE CIRCLE, EL CAJON, CA
Rooms: 7 Bed: 2 Bath: 2.0 Price: 162,500.00

Address: 1272 PERSIMMON AVENUE 1, EL CAJON, CA
Rooms: 5 Bed: 3 Bath: 2.5 Price: 189,900.00

Lakeside

Address: 9719 WINTER GARDENS BLVD 159, LAKESIDE, CA
Rooms: 4 Bed: 1 Bath: 1.0 Price: 48,900.00

Address: 12616 LAKESHORE DRIVE 50, LAKESIDE, CA
Rooms: 5 Bed: 2 Bath: 2.0 Price: 93,015.00

Address: 13106 LAUREL ST, LAKESIDE, CA
Rooms: 7 Bed: 3 Bath: 2.0 Price: 294,900.00

Santee

Address: 10533 KERRIGAN CT, SANTEE, CA
Rooms: 6 Bed: 3 Bath: 1.5 Price: 196,100.00

Address: 9139 FANITA RANCHO ROAD, SANTEE, CA
Rooms: 5 Bed: 3 Bath: 1.0 Price: 206,700.00

Address: 10507 FLORA AZALEA COURT, SANTEE, CA
Rooms: 5 Bed: 3 Bath: 2.0 Price: 332,500.00

San Diego City

Address: 4570 54TH UNIT 116, SAN DIEGO, CA
Rooms: 5 Bed: 1 Bath: 1.0 Price: 114,500.00

Address: 4323 51ST ST, SAN DIEGO, CA
Rooms: 5 Bed: 2 Bath: 2.0 Price: 176,000.00

Address: 4322 52ND STREET, SAN DIEGO, CA
Rooms: 6 Bed: 3 Bath: 2.0 Price: 188,150.00

Dan Melson, Agent
Clarity Real Estate Network
619-300-7425

The Best Loans Right NOW

(based upon "real people credit", not absolutely perfect credit)

Conforming Rates

Thirty Year Fixed Rate Loans

5.00% 30 Year fixed rate loan, with only one point (that's a total discount and origination) to the consumer and NO PREPAYMENT PENALTIES!. Assuming a $400,000 loan, Payment $2147, APR 5.129! This is a thirty year fixed rate loan. The payment and interest rate will stay the same on this loan until it is paid off! 30 year fixed rate loans as low as 4.375 percent (But you'd have to be crazy to pay that many points!)

5/1 Hybrid ARM Rates

5/1 ARMs have now fallen to levels below 30 year fixed

4.625% 30 Year fixed rate loan, with only one point (that's a total discount and origination) to the consumer and NO PREPAYMENT PENALTIES!. Assuming a $400,000 loan, Payment $2057, APR 4.751! This is a fully amortized thirty year loan with the interest rate fixed for five years. 5/1 ARM rates as low as 4.00 percent (But you'd have to be crazy to pay that many points!)

Super-Conforming Rates

($417,001 to $546,250 in San Diego)

5.125% 30 Year fixed rate loan, with one point (total discount and origination) to the consumer and NO PREPAYMENT PENALTIES!. Assuming a $500,000 loan, Payment $2722, APR 5.254! This is a thirty year fixed rate loan. The payment and interest rate will stay the same on this loan until it is paid off! 30 year fixed rate loans as low as 4.375 percent (But you'd have to be crazy to pay that many points!)

VA Rates

5.00% 30 Year fixed rate loan, with only three tenths of one point (total discount and origination) from the lender to the consumer and NO PREPAYMENT PENALTIES (Standard Veterans Administration government generated charges to borrowers apply)!. Assuming a $400,000 loan, Payment $2147, APR 5.066! This is a thirty year fixed rate loan. The payment and interest rate will stay the same on this loan until it is paid off! 30 year fixed rate VA loans as low as 4.5 percent (But you'd have to be crazy to pay that many points!)

NONCONFORMING ("JUMBO") RATES

These numbers assume a 70% loan to value ratio, not 80.

Thirty Year Fixed Rate Loans

6.25% "Jumbo" 30 Year fixed rate loan, with ONE point total discount and origination, and NO PREPAYMENT PENALTIES!. Assuming a $700,000 loan, Payment $4310, APR 6.380! This is a thirty year fixed rate loan. The payment and interest rate will stay the same on this loan until it is paid off! Jumbo 30 year fixed rate loans as low as 5.125 percent (But you'd have to be crazy to pay that many points!)

5/1 Hybrid ARM Rates

JUMBO 5/1s are more than a full percent lower than 30 year fixed

4.75% "Jumbo" 5/1 ARM, with one point total discount and origination, and NO PREPAYMENT PENALTIES!. Assuming a $700,000 loan, Payment $3652, APR 4.869! This is a fully amortized thirty year loan with the interest rate fixed for five years. 5/1 Jumbo ARMs as low as 3.75 percent (But you'd have to be crazy to pay that many points!)

All rates above are intended for San Diego County today, and include a 30 day lock. Loan prices will vary every day. Loan pricing in the rest of California will be similar. Conforming loan pricing will be similar between about $150,000 and the conforming limit in your area. Nonconforming loan pricing will be similar from the conforming limit up to about $1 million dollars in loan amount.

10 year interest only payments available on 30 year fixed rate loans!

Great Rates on super-jumbo loans also available!

Zero closing costs and zero points loans also available!

Portfolio lenders! Need something special most lenders can't do? Portfolio lenders may be the key! I have portfolio lenders!

Yes, I still have low to zero down payment and some stated income programs available!

These are actual retail rates at actual costs available to real people with average credit scores! I always guarantee the loan type, rate, and total cost as soon as I have enough information from you to lock the loan (subject to underwriting approval of the loan). I pay any difference, not you. If your loan provider doesn't do this, you need a new loan provider!

All of the above loans are on approved credit, not all borrowers will qualify, based upon an 80% loan to value and a median credit score on a full documentation loan. Rates subject to change until rate lock.

Interest only, stated income, bad credit and other options also available. If you need a mortgage, chances are I can do it faster and on better terms than you'll actually get from anyone else in the business.

Designing transactions for low to zero down payment a specialty

Please ask me about first time buyer programs, including the Mortgage Credit Certificate, which gives you a tax credit for mortgage interest, and can be combined with any of the above loans!

Call me. Clarion Mortgage Capital at 619-300-7425, ask for Dan. Or email me: danmelson (at) danmelson (dot) com

Reminds me of this gold rush movie (one that I recommend watching if you have a chance)

Okay, it's not quite like that, but correctly priced properties are flying into "Pending". It has to do with supply and demand. At $600,000, comparatively few people can really afford a single family detached property. But at $400,000 and under, there's a whole lot of offers going on.

There were signs of this turnaround all last summer, but it really hit hard after Columbus Day. All of a sudden, I was busier than the proverbial one armed paper hanger, and all the correctly priced properties were seeing multiple bids. I've put in offers on thirty-five or forty properties in the last few months, and I can count on the thumbs of one hand the times my clients' offer was the only offer. Yes, I know that listing agents often pretend there are other offers, but a good buyer's agent knows what to look for to indicate whether there really are other offers.

Sales prices aren't being negotiated down very often, either. If I'm representing the only offer, the sellers and their agents aren't in what might be considered the strongest of negotiating positions. If there are three or four other offers in play, however, the trick is to get the property without outbidding the other prospective buyers by any more than you have to. The best trick is not to offer more money, but to learn what things other than money influence an informed seller. These things vary from situation to situation. A short sale wants slightly different things than lender owned property who in turn want something slightly different than ordinary sellers. You can't reason with a seller who just wants the highest bid, but you can reason with a competently advised seller who understands that a purchase contract does not equal a consummated sale.

In all three cases, we have to deal with a paranoid lending environment. Fannie Mae and Freddie Mac have (within the last month) relaxed their standards to once again allow lending to someone with up to ten real estate loans, but the odds of this happening are essentially non-existent due to the fact that they have made it extremely difficult to get credit for rental income from investment property. Without rental income, debt to income ratio is too high for the prospective borrower to qualify under the standards for Fannie and Freddie, leaving your alternatives as portfolio lenders at a higher rate of interest, once again impacting debt to income ratio, or the high down payment requirements of commercial loans. A large part of the reasons for Fannie and Freddie cracking down thus are the prevalence of "buy and bail". Most people are not intending buy and bail, but it's very difficult to prove that you're not, and Fannie and Freddie's standards are about prospective borrowers proving that they can afford the entire situation. Even portfolio lenders are decidedly on the paranoid side right now, and for good reason: If you default, it's coming directly out of their pocket. There is no more selling the loans to idiots on Wall Street who are only looking at the interest rate because "real estate never loses value!"

Over forty percent of prospective buyers with a fully negotiated purchase contract here in San Diego have been unable to consummate the transaction because they are unable to actually get the loan they require. The fallback of stated income is gone except for a few portfolio lenders, and they've got pretty draconian rules themselves, like "You can't own any investment property!" at one. Equity requirements from maximum loan to value ratios on purchases are as hard as concrete, and they're even harder if you've got investment property. If you don't have thirty percent equity in every other property you own, you should probably plan on being forced to sell that property in order to buy another one.

As far as loans go, I'm just now getting comfortable with telling people I've got conventional loans for 95% of value - requiring 5% down. I've had one program for quite a while, but now I've got a second way to get it. Both require PMI, but better to pay PMI than not to get the property while it's cheap. Anything over eighty percent loan to value on a single loan is going to have PMI required - it's sourced in Federal Reserve Rules, and trying to evade the requirement is a recipe for trouble - legal trouble as well as a failed transaction. Since second trust deed lenders don't want to go even to 90% of value right now (and some are limiting themselves as low as 75%), your choice is basically a single loan with PMI or no purchase. You might as well take it into account before you make an offer - and if you're a seller, make certain that any buyer you accept based upon less than 20% down can afford the PMI as well as the basic payment. Pre-qualification and pre-approval letters have an ugly habit of not doing that.

FHA loans require 3.5% down payment, and they have their own mortgage insurance requirements - 1.75% of the loan amount up front plus 0.55% per year, and the basic debt to income ratio limit is 43% instead of 45%. Make sure your calculations of Can I afford this property include those figures. You would be amazed and disgusted how often buyers and their agents and loan officers base their "Can we qualify?" figures upon what's basically wishful thinking, because it doesn't take into account things they need to pay. Both FHA and VA loans restrict what properties they are willing to fund loans upon far more than conventional lenders. There is a laundry list of disqualifying characteristics that can mean you can't get a government loan on the property.

VA loans are still the magic bullet, as they will fund loans up to 103% of purchase price, meaning no down payment. However, they've got the same rules as FHA as to what they will and won't fund as far as property goes, and they won't permit buyers to be charged for many real, legitimate fees of getting a loan done, which means that lenders often have no choice but to make their money via yield spread or secondary market bond premium, which means that available rates may not be as low as other loan types in some situations. However, there's no mortgage insurance on VA loans, a fact that makes them inherently superior to FHA loans if you or your spouse have VA loan eligibility.

San Diego property has become affordable again. The most recent set of figures I saw said that seventy-three percent of all families in San Diego can now afford a median entry level property. Given this fact (particularly as opposed to the nine percent affordability ratio a couple of years ago), it's no surprise that people are looking to buy. Once current inventory clears, expect prices to be off to the races again. We may not get twenty percent per year for five straight years, mostly due to the investment property constraints, but I'm expecting solid noteworthy increases in prices before the end of the year. In some highly desirable areas, prices have already been rising for nine months to a year. Inventory is in the process of clearing out the backlog - we're down to just over 15,000 active listings from 18,000 a couple months ago. When we get down to ten or twelve thousand active listings, we'll see countywide price increases again.

The conclusion is quite strong: If you're a buyer, the time to move is now. If you're a seller, hold on if you can. If you're looking to sell so you can buy something else, talk to me. Prices are going up soon. Furthermore, with all the building restrictions we still have in place, I would bet serious cash that real estate prices are never going to be this affordable again.

Caveat Emptor


Newly Written Articles

Finding a Good Buyer's Agent (And Eliminating Bad Ones).

Games with Mortgage Loan Rate Locks (Games Lenders Play Part 10) Talks about issues relating to the rate lock.

Barack Obama's "Help For Homeowners" Proposal Like President Bush's proposal before him, not much help for a high price.

Lipstick on a Pig: Selling the Property You Should Never Have Bought

Confusing Past Performance and the Present Situation with Future Planning talks about the housing market and why you shouldn't try to time it.

Title Deeds And The Form They Should Take talks about what the title deed needs to say.

Why It May Be Costly to Reject Paying Points goes over the facts and the math of getting loans done. Would you pay 1% of loan amount to cut your interest rate by 2% per year? If you're smart, you will

Consumer Focused Carnival of Real Estate is a collection of the best articles submitted that help consumers.

Updated Articles

Real Estate is More Local Than Most People Think Make sure your agent makes a habit of working your area

Considering Condos, Townhomes, and PUDs The basics of common interest developments.

Loan Documents - Contracts of Adhesion. They're offering you a "take it or leave it" but you do have some protections.

Just Because Compensation for a Loan Isn't Disclosed Doesn't Mean It's Free, and just because you don't know what it is doesn't mean it's cheap. Evaluate loans by the bottom line to you.

Improving your Credit Score and Tradelines The credit score folks have taken steps against gaming the system.

Truth In Lending and APR is an update of one of the more important articles I've written. Don't evaluate loans by APR.

How Easy Scams Are talks about how easy it is for someone to get taken off their guard and scammed for tens of thousands of dollars.

Copyright 2005-2014 Dan Melson. All Rights Reserved

 

Dan Melson's San Diego Real Estate and Mortgage Website

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About this Archive

This page is an archive of entries from March 2009 listed from newest to oldest.

February 2009 is the previous archive.

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