Daily Quotes Aug. 13 2010!
"No great performance ever came from holding back."
-- Don Greene, Performance Coach
"Happy are those who dream dreams and are ready to pay the price to make
them come true."
-- Leon Suenens, Clergyman
"People often say that this or that person has not yet found himself.
But the self is not something one finds. It is something one creates."
-- Thomas Szasz, Psychiatrist
"Freedom lies in being bold."
-- Robert Frost, poet
"There is only one way to make a great deal of money, and that is in a
business of your own."
-- J. Paul Getty, oil tycoon
"It's better to hang out with people better than you. Pick out
associates whose behavior is better than yours, and you'll drift in that
direction."
-- Warren Buffett, Berkshire Hathaway, CEO
"It's better to light a candle than curse the darkness."
-- Eleanor Roosevelt, First Lady
All "Betts" on Brian! The Only Realtor you want!
Friday, August 13, 2010
Thursday, August 12, 2010
Daily Quotes!
Daily Quotes Aug. 12 2010!
"Create a definite plan for carrying out your desire and begin at once,
whether you ready or not, to put this plan into action."
-- Napolean Hill, Motivational Writer
"If anything terrifies me, I must try to conquer it."
-- Francis Chichester, adventurer
"I've learned that people will forget what you said, people will forget
what you did, but people will never forget how you made them feel."
-- Maya Angelou, Poet
"In prosperity our friends know us; in adversity we know our friends."
-- John Churton Collins, critic
"Nothing great has ever been achieved except by those who dared believe
that something inside them was superior to circumstances."
-- Bruce Barton, advertising executive
"A bold, vigorous assault has won many a faltering cause."
-- Ira Eaker, General
"No great performance ever came from holding back."
-- Don Greene, Performance Coach
All "Betts" on Brian! The Only Realtor you want!
"Create a definite plan for carrying out your desire and begin at once,
whether you ready or not, to put this plan into action."
-- Napolean Hill, Motivational Writer
"If anything terrifies me, I must try to conquer it."
-- Francis Chichester, adventurer
"I've learned that people will forget what you said, people will forget
what you did, but people will never forget how you made them feel."
-- Maya Angelou, Poet
"In prosperity our friends know us; in adversity we know our friends."
-- John Churton Collins, critic
"Nothing great has ever been achieved except by those who dared believe
that something inside them was superior to circumstances."
-- Bruce Barton, advertising executive
"A bold, vigorous assault has won many a faltering cause."
-- Ira Eaker, General
"No great performance ever came from holding back."
-- Don Greene, Performance Coach
All "Betts" on Brian! The Only Realtor you want!
Wednesday, August 11, 2010
Buyers! Why Buy Now!
Buyers! Why Buy Now!
According to a recent survey commissioned by Move Inc., 23% of adults plan to purchase a home in the next five years and 53.5% of them happen to be first-time homebuyers. If you have potential homebuyers who are sitting on the fence thinking about purchasing a house, here are some talking points you can share with them.
Lower property values are making homeownership more attractive than renting in many markets throughout the country. Paying for a mortgage is now less expensive than renting in many large metropolitan areas, including Miami, Las Vegas, Phoenix and Washington, D.C., as well as smaller cities like San Antonio and Fresno, California.
Buyers have the upper hand as sellers are cutting prices on nearly one quarter of U.S. homes listed for sale in June 2010 according to the real estate website Trulia.com. That's up 9% from the previous month and represents a total price reduction of about $27 billion.
Lower mortgage rates are the result of the current recession. What does this mean for your clients? On a 30-year fixed-rate loan amount of $200,000 at 5%, the interest paid over the life of the loan is $186,512. That brings the total loan payments to $386,512. At 6%, the amount of interest paid rises to $231,676, a 24% increase. At 7%, it's $279,018, a 49% increase.
Investment opportunities abound as mortgage rates and home prices have dropped dramatically since March 2008. This has created one of the best buyer affordability conditions with the percentage of median household income needed to pay the mortgage on a median priced home at a 30-year low.
All "Betts" on Brian! The Only Realtor you want!
According to a recent survey commissioned by Move Inc., 23% of adults plan to purchase a home in the next five years and 53.5% of them happen to be first-time homebuyers. If you have potential homebuyers who are sitting on the fence thinking about purchasing a house, here are some talking points you can share with them.
Lower property values are making homeownership more attractive than renting in many markets throughout the country. Paying for a mortgage is now less expensive than renting in many large metropolitan areas, including Miami, Las Vegas, Phoenix and Washington, D.C., as well as smaller cities like San Antonio and Fresno, California.
Buyers have the upper hand as sellers are cutting prices on nearly one quarter of U.S. homes listed for sale in June 2010 according to the real estate website Trulia.com. That's up 9% from the previous month and represents a total price reduction of about $27 billion.
Lower mortgage rates are the result of the current recession. What does this mean for your clients? On a 30-year fixed-rate loan amount of $200,000 at 5%, the interest paid over the life of the loan is $186,512. That brings the total loan payments to $386,512. At 6%, the amount of interest paid rises to $231,676, a 24% increase. At 7%, it's $279,018, a 49% increase.
Investment opportunities abound as mortgage rates and home prices have dropped dramatically since March 2008. This has created one of the best buyer affordability conditions with the percentage of median household income needed to pay the mortgage on a median priced home at a 30-year low.
All "Betts" on Brian! The Only Realtor you want!
Daily Quotes!
Daily Quotes Aug. 11 2010!
"It isn't where you came from; it's where you're going that counts."
-- Ella Fitzgerald, jazz singer
"Success comes to the man who grits his teeth, squares his jaw and says,
"There is a way for me and, by jingo, I'll find it.""
-- Clifford Sloan, Publisher
"To try and fail is at least to learn. To fail to try is to suffer the
loss of what might have been."
-- Benjamin Franklin, Statesman, Inventor and Freemason
"I was taught that the way of progress is neither swift nor easy."
-- Marie Curie, Physicist
"Sometimes we stare so long at a door that is closing that we see too
late the one that is open."
-- Alexander Graham Bell, Inventor
"Accept the challenges so that you may feel the exhilaration of victory."
-- George Patton, General
"The most difficult thing is the decision to act; the rest is merely
tenacity. The fears are paper tigers. You can do anything you decide to do."
-- Amelia Earhart, aviator
All "Betts" on Brian! The Only Realtor you want!
"It isn't where you came from; it's where you're going that counts."
-- Ella Fitzgerald, jazz singer
"Success comes to the man who grits his teeth, squares his jaw and says,
"There is a way for me and, by jingo, I'll find it.""
-- Clifford Sloan, Publisher
"To try and fail is at least to learn. To fail to try is to suffer the
loss of what might have been."
-- Benjamin Franklin, Statesman, Inventor and Freemason
"I was taught that the way of progress is neither swift nor easy."
-- Marie Curie, Physicist
"Sometimes we stare so long at a door that is closing that we see too
late the one that is open."
-- Alexander Graham Bell, Inventor
"Accept the challenges so that you may feel the exhilaration of victory."
-- George Patton, General
"The most difficult thing is the decision to act; the rest is merely
tenacity. The fears are paper tigers. You can do anything you decide to do."
-- Amelia Earhart, aviator
All "Betts" on Brian! The Only Realtor you want!
Tuesday, August 10, 2010
FHA LAUNCHES SHORT REFI OPPORTUNITY FOR UNDERWATER HOMEOWNERS
FHA LAUNCHES SHORT REFI OPPORTUNITY FOR UNDERWATER HOMEOWNERS
Effort designed to encourage principal write-downs for responsible borrowers
WASHINGTON - In an effort to help responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development today provided details on the adjustment to its refinance program which was announced earlier this year that will enable lenders to provide additional refinancing options to homeowners who owe more than their home is worth. Starting September 7, 2010, the Federal Housing Administration (FHA) will offer certain 'underwater' non-FHA borrowers who are current on their existing mortgage and whose lenders agree to write off at least ten percent of the unpaid principal balance of the first mortgage, the opportunity to qualify for a new FHA-insured mortgage.
The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth - or 'underwater' - because their local markets saw large declines in home values. Originally announced in March, these changes and other programs that have been put in place will help the Administration meet its goal of stabilizing housing markets by offering a second chance to up to 3 to 4 million struggling homeowners through the end of 2012.
"We're throwing a life line out to those families who are current on their mortgage and are experiencing financial hardships because property values in their community have declined," said FHA Commissioner David H. Stevens. "This is another tool to help overcome the negative equity problem facing many responsible homeowners who are looking to refinance into a safer, more secure mortgage product."
Today, FHA published a mortgagee letter to provide guidance to lenders on how to implement this new enhancement. Participation in FHA's refinance program is voluntary and requires the consent of all lien holders. To be eligible for a new loan, the homeowner must owe more on their mortgage than their home is worth and be current on their existing mortgage. The homeowner must qualify for the new loan under standard FHA underwriting requirements and have a credit score equal to or greater than 500. The property must be the homeowner's primary residence. And the borrower's existing first lien holder must agree to write off at least 10% of their unpaid principal balance, bringing that borrower's combined loan-to-value ratio to no greater than 115%.
In addition, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent. Interested homeowners should contact their lenders to determine if they are eligible and whether the lender agrees the write down a portion of the unpaid principal.
To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens. To be eligible, servicers must execute a Servicer Participation Agreement (SPA) with Fannie Mae, in its capacity as financial agent for the United States, on or before October 3, 2010.
For more information on FHA Short Refinance option, read FHA's mortgagee letter.
All "Betts" on Brian! The Only Realtor you want!
Effort designed to encourage principal write-downs for responsible borrowers
WASHINGTON - In an effort to help responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development today provided details on the adjustment to its refinance program which was announced earlier this year that will enable lenders to provide additional refinancing options to homeowners who owe more than their home is worth. Starting September 7, 2010, the Federal Housing Administration (FHA) will offer certain 'underwater' non-FHA borrowers who are current on their existing mortgage and whose lenders agree to write off at least ten percent of the unpaid principal balance of the first mortgage, the opportunity to qualify for a new FHA-insured mortgage.
The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth - or 'underwater' - because their local markets saw large declines in home values. Originally announced in March, these changes and other programs that have been put in place will help the Administration meet its goal of stabilizing housing markets by offering a second chance to up to 3 to 4 million struggling homeowners through the end of 2012.
"We're throwing a life line out to those families who are current on their mortgage and are experiencing financial hardships because property values in their community have declined," said FHA Commissioner David H. Stevens. "This is another tool to help overcome the negative equity problem facing many responsible homeowners who are looking to refinance into a safer, more secure mortgage product."
Today, FHA published a mortgagee letter to provide guidance to lenders on how to implement this new enhancement. Participation in FHA's refinance program is voluntary and requires the consent of all lien holders. To be eligible for a new loan, the homeowner must owe more on their mortgage than their home is worth and be current on their existing mortgage. The homeowner must qualify for the new loan under standard FHA underwriting requirements and have a credit score equal to or greater than 500. The property must be the homeowner's primary residence. And the borrower's existing first lien holder must agree to write off at least 10% of their unpaid principal balance, bringing that borrower's combined loan-to-value ratio to no greater than 115%.
In addition, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent. Interested homeowners should contact their lenders to determine if they are eligible and whether the lender agrees the write down a portion of the unpaid principal.
To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens. To be eligible, servicers must execute a Servicer Participation Agreement (SPA) with Fannie Mae, in its capacity as financial agent for the United States, on or before October 3, 2010.
For more information on FHA Short Refinance option, read FHA's mortgagee letter.
All "Betts" on Brian! The Only Realtor you want!
Daily Quotes!
Daily Quotes Aug. 10 2010!
"Without faith, nothing is possible. With it, nothing is impossible."
-- Mary Bethune, educator
"It's the little things that make the big things possible. Only close attention to the fine details of any operation makes the operation first class."
-- J. Willard Marriot
"The mind is its own place, and in itself can make a heaven of hell and
a hell of a heaven."
-- John Milton, poet
"People will not bear it when advice is violently given, even if it is
well founded. Hearts are flowers; they remain open to the softly falling
dew, but shut up in the violent downpour of rain."
-- John Paul Richter
"Service to others is the rent you pay for your room here on earth."
-- Muhammad Ali, boxer
"Every artist was first an amateur."
-- Ralph Waldo Emerson, poet
"Small differences in your performance can lead to large differences in
your results."
-- Brian Tracy, Motivational Coach
All "Betts" on Brian! The Only Realtor you want!
"Without faith, nothing is possible. With it, nothing is impossible."
-- Mary Bethune, educator
"It's the little things that make the big things possible. Only close attention to the fine details of any operation makes the operation first class."
-- J. Willard Marriot
"The mind is its own place, and in itself can make a heaven of hell and
a hell of a heaven."
-- John Milton, poet
"People will not bear it when advice is violently given, even if it is
well founded. Hearts are flowers; they remain open to the softly falling
dew, but shut up in the violent downpour of rain."
-- John Paul Richter
"Service to others is the rent you pay for your room here on earth."
-- Muhammad Ali, boxer
"Every artist was first an amateur."
-- Ralph Waldo Emerson, poet
"Small differences in your performance can lead to large differences in
your results."
-- Brian Tracy, Motivational Coach
All "Betts" on Brian! The Only Realtor you want!
Monday, August 9, 2010
For the week of August 9, 2010
For the week of August 9, 2010
INFO THAT HITS US WHERE WE LIVE
Tuesday we had Pending Homes Sales, which after dropping 30% in May, fell just 2.6% in June, with the push to qualify for the tax credit no longer a factor. These figures indicate there should be a drop in Existing Home Sales come July and maybe again in August. But some analysts feel that after this post-tax-credit dip, housing will come back solidly, just like auto sales did after "cash for clunkers" expired last year.
The report did include encouraging words on home pricing from the National Association of Realtors chief economist: "...since home prices have come down to fundamentally justifiable levels, there isn't likely to be any meaningful change to national home values. Some local markets continue to show strengthening prices." We all know you can't time a bottom, but it looks like serious buyers might want to act now.
The Mortgage Bankers Association reported an increase in demand for purchase loans for the third week in a row. Its Weekly Mortgage Applications Survey had purchase loan demand UP 1.5% for the week ended July 30.
Review of Last Week
SUMMER RALLY LITE... Coming off July's hot month for stocks, August began with a 208-point gain in the Dow. But before this summer rally could really take off, investor optimism cooled, sending market indexes up and down by small amounts for the rest of the week. Friday's July jobs report came in below expectations, which drove stocks lower, though only by 21 points. All major indexes ended UP for the week, so it's still a rally, if not a particularly strong one.
What made investors cautious included the July ISM Manufacturing Index, which fell from June's 56.2 reading to 55.5. Wall Street ignored the fact this is still a strong number, above the 50 level that signals expansion. Then Personal Income and Consumption came in unchanged for June. But income after taxes is UP 3.2% annually the last six months and "real" (inflation-adjusted) consumer spending was UP 0.1% for June and UP 1.6% annually the last six months. PCE consumer inflation dropped for the third month in a row, but core PCE, excluding food and energy, is up 1.1% the last six months, calming fears of deflation.
Wednesday, July ISM Services climbed to 54.3 from 53.8 in June, showing continued expansion in the non-manufacturing arena. Now for the July jobs report. Private sector payrolls grew less than expected and government payrolls declined more than expected. But private payrolls are up 90,000 per month since the beginning of the year. In addition, average weekly earnings are UP 0.5% for July and UP 3.0% in the last year, which should continue to drive up consumption and the economy. The unemployment rate held at 9.5%.
For the week, the Dow ended UP 1.8%, to 10653.56; the S&P 500 was UP 1.8%, to 1121.64; and the Nasdaq was UP 1.5%, to 2288.47.
Bonds ended the week well, with the headline numbers in the July jobs report attracting safe haven investors who sent prices up. Mortgage bonds did especially well, with the FNMA 30-year 4.0% bond we follow heading UP 34 basis points for the week, ending at $102.75. Freddie Mac's weekly survey of conforming loans showed national averages for fixed-rate mortgages down for the seventh week in a row.
This Week’s Forecast
THE FED, THE INFLATION, THE CONSUMER...Tuesday is Fed day, as the nation's central bank comes out of another meeting where they look at the economy and decide what to do about the cost of money. No one expects the Fed Funds Rate to budge from its current rock bottom level. But the FOMC policy statement will be carefully scrutinized to see if any changes in wording shed useful light on the state of the recovery. Friday's CPI numbers look at consumer inflation, expected to stay tame. With prices in check, Friday's July Retail Sales reports are expected to rebound from June, showing the consumer is indeed helping things along.
The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
All "Betts" on Brian! The Only Realtor you want!
INFO THAT HITS US WHERE WE LIVE
Tuesday we had Pending Homes Sales, which after dropping 30% in May, fell just 2.6% in June, with the push to qualify for the tax credit no longer a factor. These figures indicate there should be a drop in Existing Home Sales come July and maybe again in August. But some analysts feel that after this post-tax-credit dip, housing will come back solidly, just like auto sales did after "cash for clunkers" expired last year.
The report did include encouraging words on home pricing from the National Association of Realtors chief economist: "...since home prices have come down to fundamentally justifiable levels, there isn't likely to be any meaningful change to national home values. Some local markets continue to show strengthening prices." We all know you can't time a bottom, but it looks like serious buyers might want to act now.
The Mortgage Bankers Association reported an increase in demand for purchase loans for the third week in a row. Its Weekly Mortgage Applications Survey had purchase loan demand UP 1.5% for the week ended July 30.
Review of Last Week
SUMMER RALLY LITE... Coming off July's hot month for stocks, August began with a 208-point gain in the Dow. But before this summer rally could really take off, investor optimism cooled, sending market indexes up and down by small amounts for the rest of the week. Friday's July jobs report came in below expectations, which drove stocks lower, though only by 21 points. All major indexes ended UP for the week, so it's still a rally, if not a particularly strong one.
What made investors cautious included the July ISM Manufacturing Index, which fell from June's 56.2 reading to 55.5. Wall Street ignored the fact this is still a strong number, above the 50 level that signals expansion. Then Personal Income and Consumption came in unchanged for June. But income after taxes is UP 3.2% annually the last six months and "real" (inflation-adjusted) consumer spending was UP 0.1% for June and UP 1.6% annually the last six months. PCE consumer inflation dropped for the third month in a row, but core PCE, excluding food and energy, is up 1.1% the last six months, calming fears of deflation.
Wednesday, July ISM Services climbed to 54.3 from 53.8 in June, showing continued expansion in the non-manufacturing arena. Now for the July jobs report. Private sector payrolls grew less than expected and government payrolls declined more than expected. But private payrolls are up 90,000 per month since the beginning of the year. In addition, average weekly earnings are UP 0.5% for July and UP 3.0% in the last year, which should continue to drive up consumption and the economy. The unemployment rate held at 9.5%.
For the week, the Dow ended UP 1.8%, to 10653.56; the S&P 500 was UP 1.8%, to 1121.64; and the Nasdaq was UP 1.5%, to 2288.47.
Bonds ended the week well, with the headline numbers in the July jobs report attracting safe haven investors who sent prices up. Mortgage bonds did especially well, with the FNMA 30-year 4.0% bond we follow heading UP 34 basis points for the week, ending at $102.75. Freddie Mac's weekly survey of conforming loans showed national averages for fixed-rate mortgages down for the seventh week in a row.
This Week’s Forecast
THE FED, THE INFLATION, THE CONSUMER...Tuesday is Fed day, as the nation's central bank comes out of another meeting where they look at the economy and decide what to do about the cost of money. No one expects the Fed Funds Rate to budge from its current rock bottom level. But the FOMC policy statement will be carefully scrutinized to see if any changes in wording shed useful light on the state of the recovery. Friday's CPI numbers look at consumer inflation, expected to stay tame. With prices in check, Friday's July Retail Sales reports are expected to rebound from June, showing the consumer is indeed helping things along.
The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
All "Betts" on Brian! The Only Realtor you want!
Daily Quotes!
Daily Quotes Aug. 9 2010!
"As long as you're going to be thinking anyway, think big."
-- Donald Trump, Real Estate Mogule
"The barrier (to) success is not something which exists in the real
world; it is composed purely and simply of doubts about ability."
-- Franklin Roosevelt, 32nd U.S. President
"The majority of men meet with failure because (they don't create) new
plans to take the place of those that fail."
-- Napoleon Hill, motivational expert
"Without ambition, one starts nothing. Without work, one finishes
nothing. The prize will not be sent to you. You have to win it."
-- Ralph Waldo Emerson, Poet
"The most important thing about goals is... having one."
-- Geoffry F. Abert
"It is not enough to fight. It is the spirit that we bring to the fight
that decides the issue. It is morale that wins the victory."
-- George Marshall, general
"The only real security that a man will have in this world is a reserve
of knowledge, experience and ability."
-- Henry Ford, carmaker
All "Betts" on Brian! The Only Realtor you want!
"As long as you're going to be thinking anyway, think big."
-- Donald Trump, Real Estate Mogule
"The barrier (to) success is not something which exists in the real
world; it is composed purely and simply of doubts about ability."
-- Franklin Roosevelt, 32nd U.S. President
"The majority of men meet with failure because (they don't create) new
plans to take the place of those that fail."
-- Napoleon Hill, motivational expert
"Without ambition, one starts nothing. Without work, one finishes
nothing. The prize will not be sent to you. You have to win it."
-- Ralph Waldo Emerson, Poet
"The most important thing about goals is... having one."
-- Geoffry F. Abert
"It is not enough to fight. It is the spirit that we bring to the fight
that decides the issue. It is morale that wins the victory."
-- George Marshall, general
"The only real security that a man will have in this world is a reserve
of knowledge, experience and ability."
-- Henry Ford, carmaker
All "Betts" on Brian! The Only Realtor you want!
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