Dan Melson: July 2009 Archives

The new consumer article for today is Assuming Seller Concessions On Loan Quotes, which discusses why lenders do this: To make an expensive loan look not so expensive. But there is no way to get seller concessions (Seller Paid Closing Costs) without paying for them in the purchase price. Which means you're paying for them twice - once in the purchase price, once for loan costs.

This is the new list of HOMESTEPS properties from Freddie Mac for the areas I specialize in. These properties qualify for special financing. I can get the list for other areas.

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

Yes, I'm a day and a half behind the power curve here. Actual buyers and sellers and loans get serviced before I write this.

If you have questions, Contact me

La Mesa

Address: 4985 WILLIAMS AVE, LA MESA, CA
Rooms: 6 Bed: 3 Bath: 2.0 Price: 202,500.00

Address: 4645 MUNROE ST, LA MESA, CA
Rooms: 7 Bed: 4 Bath: 3.0 Price: 519,900.00

Address: 5700 BALTIMORE DR 218, LA MESA, CA
Rooms: 4 Bed: 2 Bath: 2.5 Price: 185,500.00

Address: 5615 WENDI ST, LA MESA, CA
Rooms: 5 Bed: 3 Bath: 2.0 Price: 302,100.00

El Cajon

Address: 12074 CALLE DE LEON 53, EL CAJON, CA
Rooms: 4 Bed: 1 Bath: 1.0 Price: 164,300.00

Address: 470 EL MONTE RD, EL CAJON, CA
Rooms: 4 Bed: 2 Bath: 1.0 Price: 225,250.00

Address: 855 S ANZA STREET, EL CAJON, CA
Rooms: 5 Bed: 3 Bath: 2.0 Price: 233,200.00

Address: 792 N MOLLISON 1, EL CAJON, CA
Rooms: 5 Bed: 2 Bath: 2.0 Price: 108,650.00

Address: 1423 GRAVES AVENUE 231, EL CAJON, CA
Rooms: 5 Bed: 2 Bath: 2.0 Price: 138,860.00

Address: 1133 PERSIMMON AVENUE 6, EL CAJON, CA
Rooms: 5 Bed: 3 Bath: 2.5 Price: 191,807.00

Lakeside

None currently

Santee

Address: 9139 FANITA RANCHO ROAD, SANTEE, CA
Rooms: 5 Bed: 3 Bath: 1.0 Price: 179,500.00

Address: 10570 KERRIGAN COURT, SANTEE, CA
Rooms: 5 Bed: 3 Bath: 2.5 Price: 197,128.00

Address: 8549 PASEO DRIVE, SANTEE, CA
Rooms: 6 Bed: 4 Bath: 1.0 Price: 212,000.00

Address: 9635 MAST BOULEVARD, SANTEE, CA
Rooms: 5 Bed: 3 Bath: 2.0 Price: 237,970.00

San Diego City

Address: 4212 48TH STREET, SAN DIEGO, CA
Rooms: 4 Bed: 2 Bath: 1.0 Price: 98,050.00

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

The Best Loans Right NOW

Based upon "average credit", not absolutely perfect credit. People who do have better credit get even better rates!

Conforming Rates

Thirty Year Fixed Rate Loans

5.00% 30 Year fixed rate loan, with one total point (discount plus 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 4.25 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 nearly a full percent!

4.00% 5/1 ARM, with one total point (discount plus origination) to the consumer and NO PREPAYMENT PENALTIES!. Assuming a $400,000 loan, Payment $1910, APR 4.121! 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!)

Jumbo Conforming Rates (aka Super Conforming)

(NOW $417,001 to $697,500 in San Diego))

5.375% 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 $2800, APR 5.506! 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 4.5 percent (But you'd have to be crazy to pay that many points!)

VA Rates

5.25% 30 Year fixed rate loan, with 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 $2209, APR 5.381! 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

(NOW $697,501 and above in San Diego)

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

Thirty Year Fixed Rate Loans

5.75% "Jumbo" 30 Year fixed rate loan, with ONE point total discount and origination, and NO PREPAYMENT PENALTIES!. Assuming a $700,000 loan, Payment $4085, APR 5.876! 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 5.00 percent (But you'd have to be crazy to pay that many points!)

5/1 Hybrid ARM Rates

JUMBO 5/1s are about one percent lower than 30 year fixed for the same cost

5.00% "Jumbo" 5/1 ARM, with one point total discount and origination, and NO PREPAYMENT PENALTIES!. Assuming a $700,000 loan, Payment $3758, APR 5.120! This is a fully amortized thirty year loan with the interest rate fixed for five years. 5/1 Jumbo ARMs as low as 4.25 percent (But you'd have to be crazy to pay that many points!) On the hypothetical $700,000 loan, a 5/1 saves over $510 per month in cost of interest over a thirty year fixed!

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 purchase programs.

Sorry, the last stated income program of which I'm aware stopped taking applications.

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 am able 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, 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!

Owe more than the property is currently worth? Ask about the 125% refinance with no PMI

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 Some Offers Are More Equal Than Others, talking about how to evaluate two different purchase offers even though they may be for the same or similar amounts of money. This is primarily important for property owners looking to sell, but those looking to buy should also be aware of these issues and take steps to deal with them. For sellers, just choosing the higher offer is a recipe to end up disappointed, frustrated, and out thousands of dollars to no good purpose.

This is the new list of HOMESTEPS properties from Freddie Mac for the areas I specialize in. These properties qualify for special financing. I can get the list for other areas.

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

If you have questions, Contact me

La Mesa

Address: 4985 WILLIAMS AVE, LA MESA, CA
Rooms: 6 Bed: 3 Bath: 2.0 Price: 202,500.00

Address: 4645 MUNROE ST, LA MESA, CA
Rooms: 7 Bed: 4 Bath: 3.0 Price: 519,900.00

Address: 5700 BALTIMORE DR 218, LA MESA, CA
Rooms: 4 Bed: 2 Bath: 2.5 Price: 185,500.00

Address: 5615 WENDI ST, LA MESA, CA
Rooms: 5 Bed: 3 Bath: 2.0 Price: 302,100.00

El Cajon

Address: 12074 CALLE DE LEON 53, EL CAJON, CA
Rooms: 4 Bed: 1 Bath: 1.0 Price: 164,300.00

Address: 1000 ESTES STREET 39, EL CAJON, CA
Rooms: 5 Bed: 2 Bath: 2.0 Price: 106,530.00

Address: 855 S ANZA STREET, EL CAJON, CA
Rooms: 5 Bed: 3 Bath: 2.0 Price: 233,200.00

Address: 792 N MOLLISON 1, EL CAJON, CA
Rooms: 5 Bed: 2 Bath: 2.0 Price: 108,650.00

Address: 1423 GRAVES AVENUE 231, EL CAJON, CA
Rooms: 5 Bed: 2 Bath: 2.0 Price: 138,860.00

Address: 1133 PERSIMMON AVENUE 6, EL CAJON, CA
Rooms: 5 Bed: 3 Bath: 2.5 Price: 191,807.00

Lakeside

None currently

Santee

Address: 9139 FANITA RANCHO ROAD, SANTEE, CA
Rooms: 5 Bed: 3 Bath: 1.0 Price: 179,500.00

Address: 10570 KERRIGAN COURT, SANTEE, CA
Rooms: 5 Bed: 3 Bath: 2.5 Price: 197,128.00

Address: 8549 PASEO DRIVE, SANTEE, CA
Rooms: 6 Bed: 4 Bath: 1.0 Price: 212,000.00

Address: 9635 MAST BOULEVARD, SANTEE, CA
Rooms: 5 Bed: 3 Bath: 2.0 Price: 237,970.00

San Diego City

Address: 4204 45TH STREET 13, SAN DIEGO, CA
Rooms: 4 Bed: 2 Bath: 2.0 Price: 92,220.00

Address: 4212 48TH STREET, SAN DIEGO, CA
Rooms: 4 Bed: 2 Bath: 1.0 Price: 98,050.00

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

I almost Forgot to mention that Fannie Mae and Freddie Mac have been pleased with the success of their 105% refinance program. It's keeping them from losing money, and converting adjustable loans into fixed rate loans so the consumers can refinance and keep their property when otherwise they would be forced into foreclosure because they couldn't refinance.

Therefore, they have announced that within the next month or so, they will be expanding the programs to include loans up to 125% of current property (appraised) value. Everything else I wrote about the 105% refinance program is still valid, except the permissible loan to value ratio has changed.

Note: The loan to value ratio refers to the first mortgage only! Fannie and Freddie are not consolidating second mortgages, which would have to agree to subordinate. But if you own a property where you can only get a $400,000 appraisal right now but owe Fannie or Freddie (up to) $500,000, it is possible we may be able to move you into a fixed rate loan at a better rate of interest.

The Best Loans Right NOW

Based upon "average credit", not absolutely perfect credit. People who do have better credit get even better rates!

Conforming Rates

Thirty Year Fixed Rate Loans

5.00% 30 Year fixed rate loan, with one total point (discount plus 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 by nearly a full percent!

4.125% 5/1 ARM, with one total point (discount plus 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!)

Jumbo Conforming Rates (aka Super Conforming)

(NOW $417,001 to $697,500 in San Diego))

5.375% 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 $2800, APR 5.506! 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 4.5 percent (But you'd have to be crazy to pay that many points!)

VA Rates

5.5% 30 Year fixed rate loan, with no points (discount or 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 $2271, APR 5.541! 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

(NOW $697,501 and above in San Diego)

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

Thirty Year Fixed Rate Loans

5.75% "Jumbo" 30 Year fixed rate loan, with ONE point total discount and origination, and NO PREPAYMENT PENALTIES!. Assuming a $700,000 loan, Payment $4085, APR 5.876! 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 5.00 percent (But you'd have to be crazy to pay that many points!)

5/1 Hybrid ARM Rates

JUMBO 5/1s are about one percent lower than 30 year fixed for the same cost

4.875% "Jumbo" 5/1 ARM, with one point total discount and origination, and NO PREPAYMENT PENALTIES!. Assuming a $700,000 loan, Payment $3704, APR 4.995! This is a fully amortized thirty year loan with the interest rate fixed for five years. 5/1 Jumbo ARMs as low as 4.25 percent (But you'd have to be crazy to pay that many points!) On the hypothetical $700,000 loan, a 5/1 saves over $510 per month in cost of interest over a thirty year fixed!

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 purchase programs.

Sorry, the last stated income program of which I'm aware stopped taking applications.

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 am able 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, 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!

Ask about the 125% refinance with no PMI

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 The Loan Shopping Koan, talking about the contradiction offered by dueling interests: The fact that while consumers want the best possible loan, against the opposing fact that it's very easy for loan providers to talk a good game while fully intending to deliver something not so good, and regulations don't do anything real about this. There's also a loan officer koan in there, talking about balancing the divergent ways that the industry and consumer interest pull the better loan officers.

The new consumer article for today is How To Keep Listing Agents From Filtering Out Offers. This is a real, major, and once again increasing problem within the real estate industry. You need to take steps to prevent it from happening to you before you sign the listing contract.

And if you're wondering, I'm perfectly happy to agree to everything outlined in the article. I pretty much do it anyway.

The new consumer article for today is Short Sale Negotiators and the Interests of Potential Buyers. An awful lot of nonsense gets tried with short sales, most of it for the benefit of lazy listing agents who shouldn't have taken the listing rather than any of the principals in the transaction.